COU CIL OF Brussels, 25 June 2012 THE EUROPEA U IO
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OTE from : General Secretariat of the Council to : Delegations Subject: Summary of the meeting of the European Parliament's Committee on Budgets (BUDG) held in Brussels on 20 and 21 June 2012
The meeting was chaired by Mr LYON (ALDE, UK) and Ms HAUG (S&D, DE).
Item 4 on the agenda MFF 2014-2020 / Own resources Rapporteurs: Mr BÖGE (EPP, DE), Mr KALFIN (S&D, BG)/ Mr DEHAENE (EPP, BE)& Ms JENSEN (ALDE, DK) • Exchange of views
Mr KALFIN debriefed BUDG members on the latest developments on negotiations with the Council, the informal European Council meeting of 10 and 11 June and the last meeting of the Contact Group.
Mr KALFIN indicated in particular that the DK Presidency had presented a new version of the Negotiating Box to be approved in June. He considered that the new version was not "helpful" in the view of the EP. He mentioned the suggestions for - inclusion of ITER, GALILEO and GMES within the MFF, which he said caused some difficulties; - inclusion of the fund for emergency response and the EU solidarity fund and flexibility; - discontinuing the globalisation fund.
11793/12 GC/jl 1 DRI E He also mentioned the addition of some wording ín the document which describes the budget as an instrument for investment, economic recovery and for the creation of growth and which in his view was aimed at accommodating the EP, but which he considered was not satisfactory to the EP.
Referring to the last informal GAC in Denmark, he said that the EP delegation had the opportunity to convey the message that the EP would insist on its role, and noted that reactions by Council members were more positive than one would have expected. He indicated that the Council was divided on the Negotiating Box, which opened up the possibility of a postponement of the adoption of the Negotiating Box at the next European Council meeting.
He then referred to the Contact group meeting of the Parliament on 19 June and to the discussion with several Committee chairs, who indicated that they were ready to start negotiations with the Council on legislative proposals, and concluded that the moment had come for these negotiations to start.
M. BÖGE added that the EP would produce an interim report on progress on this issue, to be adopted at the next October plenary session of the European Parliament. This interim report would include an overview of the state of play and a roadmap for future work on this file. All intervening MEPs reiterated their positions in favour of including sufficient flexibility within the EU's long-term budget.
In particular, Ms JENSEN argued for preserving what was already in the IIA and criticised the Council position requiring unanimity to revise the MFF ceilings. Ms GRÄSSLE (EPP, DE) mentioned five amendments concerning the MFF and considered that a toolbox was needed to calculate and balance the amounts. Ms GARDIAZÁBAL RUBIAL (S&D, ES) insisted that flexibility was needed to increase/change the MFF ceilings and invited the Council to consider that flexibility, whatever its source, would not apply without its agreement.
Mr. DEHAENE, co-rapporteur on the own resources package and rapporteur on the VAT proposal, presented a Working Document on VAT, aiming to clarify the Commission proposal on a new VAT own resource and compare it to the existing system. A presentation by Mr LEHNER, Director of Own Resources and Financial Programming, of the Commission VAT proposal was
11793/12 GC/jl 2 DRI E followed by an exchange of views in which MEPs recalled that the EP had always strongly advocated own resources for the EU budget (Böge), criticised the current VAT resource as being too complex and not transparent and expressed the wish that the future VAT own resource as proposed by the Commission be simplified and more transparent.
Mr LEHNER explained in particular that the new system would focus on a common denominator, based on items on which all consumers pay a standard rate of VAT, regardless of which Member State they are in. The common denominator would be fixed at 35-40% and this would abolish a number of adjustments and compensations. He proposed to fix the call rate at 1%, but this could be modified by the Council up to 2%. As for the time line for the completion of the procedure, he considered that this would take three to four years, as it needed to be unanimously approved by MS and ratified by National Parliaments. The effect would nevertheless be retroactive. He told Mr GODMANIS (ALDE, LV) and Mr ASHWORTH (ECR, UK) that a slice from existing revenues could not be a solution, as Member States applied different bases and different rates, so that the EU own resource would incorporate national systems, which was not acceptable. The aim was to recalculate a harmonised VAT base, given the failure of the original expectations in the 1960s of eventually reaching the same VAT base and rate in all Member States.
Mr. DEHAENE concluded the debate by confirming that the EP encouraged the Commission to pursue its efforts towards a simpler, more efficient and transparent VAT own resource and that the EP would support such a reformed VAT own resource. He considered essential that the amounts collected should not transit through national budgets, as is currently the case, so as to have a genuine own resource for the EU budget which would not raise issues such as the "juste retour" and would be decoupled from the issue of national rebates.
Item 5 on the agenda Innovative financial instruments in the context of the next Multiannual Financial Framework BUDG/7/08736 Rapporteur: Ms GARDIAZÁBAL RUBIAL (S&D, ES) • Exchange of views
Although the exchange of views was postponed, two studies were presented, on the implications for the EU and national budget of the use of innovative financial instruments for the financing of the EU policies and objectives and on the implications for the EU and national budget of the use of EU instruments for macro-financial stability instruments.
11793/12 GC/jl 3 DRI E In his answer to Ms GRÄSSLE and Mr RÜBIG (EPP, AT), the expert considered that project bonds should be profitable and not linked to a specific project. As for the use of the money by the final beneficiary, the representative of the EIB assured Ms GRÄSSLE that the project would be stopped if banks did not pass financing over to the SMEs, but acknowledged that certain financial instruments providing for loans had to finance banks.
The rapporteur stressed that scarcity of credit at times of crisis makes financial instruments necessary and considered the study helpful for her report, which should be ready by the end of July. Calendar: Exchange of views: 12 July 2012.
Item 6 on the agenda Financial rules applicable to the annual budget of the Union BUDG/7/04994 Co-rapporteurs: Ms GRÄßLE (PPE, DE) and Mr RIVELLINI (PPE, IT)
Ms GRÄSSLE pointed out the improvement that the new Financial Regulation (FR) would introduce in terms of transparency, better deadlines and streamlined financial procedures for all programs. Ms HAUG welcomed the results already achieved and supported Ms GRÄSSLE in the outstanding points, still being negotiated with the Council. These referred in particular to the rapporteurs' request to include in Article 56 (5) of the FR a facultative national declaration by Member States, signed at the appropriate level, an annual summary of the final audit reports and controls carried out by national authorities as well as the methodology for applying extrapolated or flat-rate corrections by the Commission to protect the financial interests of the Union (Article 77). These outstanding issues were strongly supported by Mr MULDER (ALDE, NL) and Mr GEIER, who nevertheless acknowledged some difficulties for federal States.
Items 7, 8 and 9 on the agenda: - Establishment of Horizon 2020 - The Framework Programme for Research and Innovation (2014-2020) BUDG/7/08107 Rapporteur for the opinion: Mr HAGLUND (ALDE, FI) Rapporteur for the responsible committee (ITRE): Ms RIERA MADURELL (S&D)
- Rules for the participation and dissemination in 'Horizon 2020 – the Framework Programme for Research and Innovation (2014-2020)' BUDG/7/08099 Rapporteur for the responsible committee (ITRE): Mr EHLER (PPE)
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- Research and Training Programme of the European Atomic Energy Community (2014-2018) complementing Horizon 2020 – The Framework Programme for Research and Innovation BUDG/7/08092 Rapporteur for the responsible committee (ITRE): Mr SKINNER (S&D) • Exchange of views
Postponed . A research study on the implications for the EU and national budgets of the use of EU instruments for macro-financial stability was presented. Calendar: Exchange of views: 12 July 2012.
Item 10 on the agenda Programme for the Competitiveness of Enterprises and small and medium-sized enterprises (2014 - 2020) BUDG/7/08067 Rapporteur: Mr RÜBIG (EPP, AT) Rapporteur for the responsible committee (ITRE): Mr CREUTZMANN (ALDE) • Exchange of views
The rapporteur very briefly presented his report, insisting in particular on the importance of enhancing SME access to financing. Calendar: Amendments: 16 July, noon; Vote: 6 September 2012.
Items 11, 12 and 13on the agenda - Amendment of Regulation (EC) o 294/2008 establishing the European Institute of Innovation and Technology BUDG/7/08126 Rapporteur for the opinion: Mr GODMANIS (ALDE, LV) Rapporteur for the responsible committee (ITRE): Mr LAMBERTS (Verts/ALE)
- Strategic Innovation Agenda of the European Institute of Innovation and Technology (EIT): the contribution of the EIT to a more innovative Europe BUDG/7/08121 Rapporteur for the opinion: Mr GODMANIS (ALDE, LV) Rapporteur for the responsible committee (ITRE): Ms MATIAS (GUE/NGL)
- Establishment of a Programme for the Environment and Climate Action (LIFE) BUDG/7/08208 apporteur for the opinion: Ms TRÜPEL (Verts/ALE, DE) apporteur for the responsible committee (ENVI): Ms HAUG (S&D) • Exchange of views
Postponed .
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Item 14 on the agenda Establishing the Rights and Citizenship Programme 2014 - 2020 BUDG/7/07990 Rapporteur for the opinion: Ms MATERA (PPE, IT) Rapporteur for the responsible committee (LIBE): KINGA GÖNCZ (S&D) • Exchange of views
Ms MATERA explained that the general objective of the programme was to contribute to the creation of an area where the rights of persons are promoted and protected.
The Programme was the successor of three current programmes: Fundamental Rights and Citizenship, Daphne III, and the sections "Antidiscrimination and Diversity" and "Gender Equality" of the Programme for Employment and Social Solidarity (PROGRESS).
The financial appropriations for implementing the programme over the period from 1 January 2014 to 31 December 2020 would amount to EUR 439 million. Ms MATERA announced 9 amendments aiming in particular to streamline indicators to measure the objectives, which should be based on the number of successfully resolved complaints. Ms JĘDRZEJEWSKA (PPE, PL) welcomed in particular the rapporteur's amendment 6, as it aimed at reinstating protection of women against all forms of violence, as provided for in the Daphne programme.
Item 15 on the agenda Justice Programme for 2014-2020 BUDG/7/08193 Rapporteur for the opinion: BARBARA MATERA (PPE) Rapporteur for the responsible committee (JURI, LIBE): LUIGI BERLINGUER (S&D) and PHILIP CLAEYS (NI) • Exchange of views
Ms MATERA explained that the Justice Programme was the successor of three current programmes: the Civil Justice (JCIV) programme, the Criminal Justice programme (JPEN), and the Drug Prevention and Information Programme (DPIP). The financial appropriations for implementing the programme over the period from 1 January 2014 to 31 December 2020 would amount to EUR 472 million. Ms MATERA announced 8 amendments, mainly aiming at mandating the Commission to report on an annual basis, improve indicators and improve the coordination of national and EU spending.
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Item 16 on the agenda European Globalisation Adjustment Fund (2014 - 2020) BUDG/7/07503 Rapporteur for the opinion: ALDA SOUSA (GUE/NGL) Rapporteur for the responsible committee (EMPL): MARIAN HARKIN (ALDE) • Exchange of views
This ITEM was postponed . Calendar: Exchange of views: 12 July 2012.
Item 17 on the agenda Connecting Europe Facility (CEF) BUDG/7/07796 Rapporteur for the opinion: Mr FÄRM (S&D, SE) Rapporteur for the responsible committee (ITRE): Ms VĂLEAN (ALDE, RO) (TRAN): Ms AYALA SENDER (S&D) Mr RIQUET (PPE) • Exchange of views
Mr FÄRM highlighted the strategic relevance of the CEF to ensure a smart, sustainable and interconnected infrastructure at EU level, in particular for transport. In his view, this should build up into an EU-wide network and he therefore warned against cross-border infrastructure that was not linked to corridors within Member States. He pointed out that the overall CEF budget amounted to EUR 50 billion; 20 billion, including 10 billion from the Cohesion Fund, were for transport infrastructure. He explained to Mr KOZLOWSKI (EPP, PL) that only Cohesion countries could benefit from this part of funding, so that no money would be taken away from Cohesion countries, but he acknowledged that funding was earmarked for transport infrastructure. Mr RIQUET (EPP, FR), rapporteur in the leading committee, highlighted the three levels of the scheme, given its importance for the internal market, the environment and social cohesion and integration, and stressed the need to maintain at least the proposed level of financing. Mr JAHR (EPP, DE) considered that the Commission should be given a leading role in deciding on priority projects and stressed the importance of financial instruments. Mr ELLES (ECR, UK) drew attention to digitalisation infrastructures, as in his view they could enhance job creation by networking small businesses. Calendar: Draft report: 12 July; Amendments: 3 September; Vote at BUDG: end of September.
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Item 18 on the agenda 'ERASMUS FOR ALL' - The Union Programme for Education, Training, Youth and Sport BUDG/7/07911 Rapporteur for the opinion: Ms JĘDRZEJEWSKA (PPE, PL) Rapporteur for the responsible committee (CULT): DORIS PACK (PPE) • Exchange of views
Ms JĘDRZEJEWSKA welcomed the Commission proposal for a new programme on Education, Training, Youth and Sport under a unique legislative framework with an overall financial envelope of 19,1 billion EUR. She stressed the fact that the overall amount of the programme went above the amount provided for the existing programmes. She announced an amendment to make provision for financing percentages for each thematic area, although it would be for the CULT leading committee to lay down the figures, but she nevertheless considered it important that a sufficient amount be secured for the area of youth, given that the proposed programme did away with the Youth in Action scheme. Ms TRÜPEL supported this approach and expressed some criticism of the Commission, as a single branding would make current programmes less visible. Ms HAUG called attention to the fact that in a letter the President of the Commission had warned against EP micromanagement of schemes. Ms GARDIAZÁBAL RUBIAL, supported by Ms HAUG, wondered whether measures could be taken to help countries that might have problems in co- financing actions under the scheme.
Calendar: Deadline for amendments: 5 September; Vote in BUDG: 19 September.
VOTI G TIME
Item 19 on the agenda 2013 Budget - Mandate for Trilogue BUDG/7/08796 Rapporteur: Mr LA VIA (PPE)
The report was adopted as amended with 34 votes in favour, 3 against and 1 abstention. Mr LA VIA, before the vote, highlighted a few points that were outstanding for the trilogue and in particular the budget needed for supporting growth, competitiveness and jobs, as well as a sufficient level of payments. He particularly deplored the Council reluctance to participate in interinstitutional political meetings on the question of RAL (outstanding commitments). He
11793/12 GC/jl 8 DRI E also pointed out what he considered to be an insufficient level of commitment appropriations and called for more realism between financial programming and the budget.
Item 20 on the agenda Draft amending budget o 3/2012: surplus from the 2011 financial year BUDG/7/09369 Rapporteur: Ms BALZANI (S&D, IT)
The draft amending budget was adopted with an unanimous vote.
Item 21 on the agenda Establishing an Instrument for Stability BUDG/7/08347 Rapporteur for the opinion: MUÑIZ DE URQUIZA (S&D, ES) Rapporteur for the responsible committee (AFET): FRANZISKA KATHARINA BRANTNER (Verts/ALE)
The report was adopted as amended with 33 votes in favour, 2 against and 2 abstentions.
Item 22 on the agenda Establishing a financing instrument for the promotion of democracy and human rights worldwide BUDG/7/08344 Rapporteur for the opinion: Ms MUÑIZ DE URQUIZA (S&D, ES) Rapporteur for the responsible committee (AFET): ALEXANDER GRAF LAMBSDORFF (ALDE)
The report was adopted as amended with 34 votes in favour, 2 against and 2 abstentions.
Item 23 on the agenda Establishing common rules and procedures for the implementation of the Union's instruments for external action BUDG/7/08643 Rapporteur for the opinion: Ms NEYNSKY (PPE, BG) Rapporteur for the responsible committee (AFET): ELMAR BROK (PPE)
The report was adopted as amended with 32 votes in favour, 3 against and 4 abstentions.
Item 24 on the agenda Instrument for Pre-accession Assistance (IPA II) BUDG/7/08315 Rapporteur for the opinion: Ms NEYNSKY (PPE, BG) Rapporteur for the responsible committee (AFET): KRISTIAN VIGENIN (S&D)
The report was adopted as amended with 27 votes in favour, 1 against and 6 abstentions.
11793/12 GC/jl 9 DRI E Item 25 on the agenda Cohesion Fund and repeal of Council Regulation (EC) o 1084/2006 BUDG/7/07465 Rapporteur for the opinion: Mr COZZOLINO (S&D, IT) Rapporteur for the responsible committee (REGI): VICTOR BOŞTINARU (S&D)
The report was adopted as amended with 30 votes in favour, 2 against and no abstentions.
Item 26 on the agenda Support from the European Regional Development Fund to the 'European territorial cooperation' goal BUDG/7/07458 Rapporteur for the opinion; Mr GEIER (S&D) Rapporteur for the responsible committee (REGI): RIIKKA MANNER (ALDE) The report was adopted as amended with 30 votes in favour, 2 against and 1 abstention.
Item 27 on the agenda Specific provisions concerning the European Regional Development Fund and the 'Investment for growth and jobs' goal and repeal of Regulation (EC) o 1080/2006 BUDG/7/07475 Rapporteur for the opinion: ANDREA COZZOLINO (S&D) Rapporteur for the responsible committee (REGI): JAN OLBRYCHT (PPE)
The report was adopted as amended with 31 votes in favour, 4 against and no abstentions.
Item 28 on the agenda European Social Fund and repeal of Regulation (EC) o 1081/2006 BUDG/7/07495 Rapporteur for the opinion: Mr GEIER (S&D, DE) Rapporteur for the responsible committee (EMPL): Ms MORIN-CHARTIER (PPE)
The report was adopted as amended with 28 votes in favour, 4 against and no abstentions.
Item 29 on the agenda Common provisions on European Funds and repealing Regulation (EC) o 1083/2006 BUDG/7/07486 Rapporteur for the opinion: Mr VAUGHAN (S&D, UK) Rapporteur for the responsible committee (REGI): Mr VAN NILSTELROOIJ (PPE) Ms KREHL (S&D) The report was adopted as amended with 32 votes in favour, 2 against and 1 abstention.
11793/12 GC/jl 10 DRI E Item 30 on the agenda Establishment of an action programme for customs and taxation in the European Union for the period 2014-2020 (FISCUS) and repeal of Decisions o 1482/2007/EC and o 624/2007/EC BUDG/7/08190 Rapporteur: Mr FAJMON (ECR, CZ)
A vote to submit the report to a vote was taken, given the Conference of President's decision, supported by the leading Committees (ECON and IMCO), to split the proposal. The report was adopted as amended with 25 votes in favour, 2 against and no abstentions.
Item 31 on the agenda Common Fisheries Policy BUDG/7/06598 Rapporteur for the opinion: Mr ALFONSI (Verts/ALE, FR) Rapporteur for the responsible committee (PECH): ULRIKE RODUST (S&D)
The report was adopted with 24 votes in favour, 2 against and 2 abstentions.
Item 32 on the agenda 2012 Budget: Section III - Commission Rapporteur: Ms BALZANI (S&D, IT) - DEC 12/2012
The report was adopted by a majority vote
Item 33 on the agenda 2012 Budget: Other Sections Rapporteur: Mr FERNANDES (PPE, PT)
There was no vote, as there were no transfer requests.
Item 34 on the agenda Buildings policy BUDG/7/04688 Rapporteur: Ms HOHLMEIER (PPE, DE)
The report was adopted by a majority vote
Item 35 on the agenda Any other business
None.
Item 36 on the agenda Next meeting 12 July 2012, 9.00 – 12.30 and 14.00 – 15.00 and 15.00 – 18.30 (Brussels)
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