EU budget talks for 2013 collapse

 
European Parliament President Martin Schulz - file pic British Conservative MEPs clashed with Martin Schulz over a 9bn euro request for 2012

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Talks to agree the EU's 2013 budget have collapsed, after negotiators from the EU and member states were unable to agree on extra funding for 2012.

The EU Commission and European Parliament had asked for a budget rise of 6.8% in 2013.

But most governments wanted to limit the rise to just 2.8%.

The failure of the talks will dent hopes of agreement on the 2014-2020 budget, which is up for discussion later this month, correspondents say.

Friday's dispute was over an extra 9bn euros (£7bn; $12bn) in "emergency funding" for 2012, to cover budgets for education, infrastructure and research projects.

But Germany, France and other governments questioned the funding, and eight hours of talks produced no agreement.

"Under these conditions, we felt that negotiations which hadn't really begun by six o'clock in the evening couldn't reasonably be expected to finish during the night," said the parliament's lead negotiator, Alain Lamassoure.

At the European parliament, UK Conservative MEPs clashed with Parliament President Martin Schulz, a German Social Democrat, over the extra 9bn euros shortfall for 2012.

In 2012 the budget was 129.1bn euros, a 1.9% increase on 2011.

'Life-changing experience'

Among the schemes facing a shortfall this year is the Erasmus student exchange programme.

It has allowed nearly three million young Europeans to study abroad since it was launched 25 years ago.

In an open letter to EU leaders on Friday more than 100 famous Europeans, including film directors and footballers, warned that "thousands could miss out on a potentially life-changing experience".

Friday's talks did produce a declaration of political will to provide 670m euros to earthquake victims in Italy, but no agreement on how to finance it, the European Parliament said.

It said that if no agreement on the 2013 budget could be reached in the next 21 days, the European Commission would look to revise its budget proposal.

The UK's Financial Secretary to the Treasury, Greg Clark, said the EU needed to practise "fiscal discipline".

"The UK and a number of other countries were very clear from the outset that the Commission and the European Parliament should not be asking taxpayers for billions of extra euros when the spending in member states is being reduced," he said.

The UK government, led by the Conservatives, has also objected to a proposed increase in the multi-year budget for 2014-2020, threatening a veto if necessary.

An EU summit aimed at reaching a deal on that budget will be held on 22-23 November.

 

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  • rate this
    +1

    Comment number 708.

    684 cont

    What the reference shows (and this is an organisation seeking to renegotiate the UK's relationship with the EU) if we were outside the EU and only use WTO rules then tarifs would apply. In a Swiss or Norwegian model complex rules of origin would apply, leading to increased costs for exporters (like car makers! Norway mainly exports fish & energy). The "no cost" exit advocates are deluded

  • rate this
    -1

    Comment number 707.

    695.ruminations

    Thats your list of auditors, not mine. I stick with what I said, Competitive Tender.

    I guess you have no objective evidence to offer to support your views. What I have said about the CoA is accurate.

    I accept you have thrown in the towel, I wish you good night.

  • rate this
    +3

    Comment number 706.

    @ 442. Unashamedly Independent ......

    Sorry you really need to think again.... too many people hold the view, across a spectrum which can only mean some substance behind the the anger and diaapointment being felt. EU is a grand stitch up by the political classes on the ordinary person across Europe. They dont care if we are destroyed ...as long as they and friends prosper.

  • rate this
    +2

    Comment number 705.

    703. SolentTiger
    JUST NOW
    If your reading this - use the Police vote next Thursday to show support for UKIP, these are committed to a vote on EU membership - lets show them our support. I'll be watching the results Swingometer next week - so will David Cameron.

    Forget your party allegiance this time - think outside the box this time.
    --
    But i don't want another layer of politicians!

  • rate this
    0

    Comment number 704.

    Kane (re 691/ 688) having worked in China and the USA I can tell for a fact that these 2 countries take The EU very seriously. They negotiate trade deals, environmental issues etc with The EU.
    With Britain on the sidelines it sees Britain as the loser and would much prefer the UK to be a strong EU partner at the heart of Europe. They now look to Germany as the a major influence - not Britain.

  • rate this
    -1

    Comment number 703.

    If your reading this - use the Police vote next Thursday to show support for UKIP, these are committed to a vote on EU membership - lets show them our support. I'll be watching the results Swingometer next week - so will David Cameron.

    Forget your party allegiance this time - think outside the box this time.

  • rate this
    -1

    Comment number 702.

    #682.Tio Terry
    If the EU is knobbling its auditors then its made a spectacularly bad job of it, even by EU standards.
    All but the most loony fringe of Europhobes think the auditors do an at least OK job

  • rate this
    0

    Comment number 701.

    http://uk.reuters.com/article/2012/11/06/us-eu-budget-merkel-cameron-idUSBRE8A50TL20121106
    "This constant litany that we must do everything to keep Britain in the EU leads to a permanent state of blackmail by our British friends," former German EU ambassador Dietrich von Kyaw told a seminar of the Institute for European Politics in Berlin

  • rate this
    0

    Comment number 700.

    @682.Tio Terry
    You've made a statement in respect of independance, is it opinion or fact that can be backed by objective evidence?

    The procedures, the organisational aspects & the reports of the COA (qualified auditors from each of the 27 member states) are there for all to see.

  • rate this
    +1

    Comment number 699.

    It appears from many HYS comments, it appears many think the EU does not have a grip on reality and the fiscal climate we are in.
    I will note to them that it's the European Socialists who are leading the call for a large increase in spending and those nasty Tories who want us to spend less

  • rate this
    +1

    Comment number 698.

    693.Trout Mask Replica
    The so called Audited Accounts are produced by the EU themselves, they are not independantly certified and even the EU's own internal auditors cannot properly account for 3.9% or over 5B euros worth of their expenduture in the latest year they have published. They are not worth the paper they are written on.

  • rate this
    0

    Comment number 697.

    This is the usual opening - ask for a ridiculously big increase so you can be "forced down" to the one you wanted in the first place to leave politicians looking tough. We should ask the EU Commission to produce plans for 5% efficiency improvements year on year and base a budget on that. Overspending by more than 1% gets the top job the sack.

  • rate this
    +4

    Comment number 696.

    "In an open letter to EU leaders on Friday more than 100 famous Europeans, including film directors and footballers, warned that "thousands could miss out on a potentially life-changing experience".
    -----
    Who cares what film directors and footballers think about the EU budget? What on earth do they know about the subject, and who do they represent but themselves?

  • rate this
    +1

    Comment number 695.

    668..Tio Terry..

    Sigh...! ..more belittlement as debate Terry...

    Competive tender....be`twixt..

    KPMG
    PWC
    ERNST & YOUNG
    DELOITTE

    These are the only boys in town who have the economies of scale...?

    A corruption cartel, and ludicrous to advocate them as trustworthy auditors of an important budget..

    I suspect we`re done....you can stroke yer ego elsewhere..

  • rate this
    0

    Comment number 694.

    The Conservatives need to rejoin the EPP, being aligned to a load of far right wing and extremists is not good. Our natural alliance is with The EPP - again the Conservatives have been dictated to be the right wing Euro sceptics in their party, time to get a grip on your party Mr Cameron.

  • rate this
    +1

    Comment number 693.

    Can those who keep asking for audited EU accounts please read the past few pages before posting. They will find links that show conclusively that the EU has got audited accounts and has had them for many years.

    Nonetheless if the EU is THE most important issue in your life (higher than the NHS, student fees, policing, pensions etc) then clearly you MUST vote UKIP. Most of us have other worries.

  • rate this
    0

    Comment number 692.

    All polititians along with Lawyers are not to be trusted. I think it is time to think outside the box and give UKIP the job of bringing governance back to the UK and make Britain GREAT again

  • rate this
    -2

    Comment number 691.

    688.
    Philip
    "America, China etc are beginning to move its European relationships to Germany as it sees Cameron and his party as being ineffective in The EU."
    Can you provide any evidence to support your ludicrous claim?

  • rate this
    -2

    Comment number 690.

    time we got out the E.U and looked after our own finances. and stop helping the countries who have no intention of helping themselves.... we help other countries. constantly lets look after our own. and i dont mean the illegal lot either.....

  • rate this
    0

    Comment number 689.

    So joevl has a chip on his shoulder with regards the Union just like his deluded leader Mr. Salmond. Please don't ever compare the UK with The European 'Union'. Anyhow it seems like aforesaid glorious leader wants to hang out with all the other gravy trainers in Europe. All I can say is that they'll be well matched if he can ever make his mind up and tell the truth on various issues!

 

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