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EU budget: the victory of the European Parliament over the European Council

Tour de force of the European Parliament which in the last plenary session in Strasbourg approved, in addition to the two budgets, the reform of the agricultural policy and that of economic and social cohesion which, added together, will commit more than two thirds of the expenditure planned for the next seven years.

EU budget: the victory of the European Parliament over the European Council

It has probably never happened that in a single plenary session the European Parliament approved such a rich package of important legislative initiatives as in the one that has just concluded in Strasbourg. The budget for 2014, the multiannual financial framework 2014-2020, the reform of the common agricultural policy, the new economic and social cohesion policy, the Horizon 2020 framework program for research and innovation, the Erasmus+ program to extend the opportunity to study in an EU country other than that of residence. These are the measures with the greatest impact for the entire European Union that the Strasbourg Assembly has dismissed from Monday 4 November onwards. Provisions that have defined the spending guidelines of the EU as a whole (almost one thousand billion euros), and to a certain extent also directed those of its 28 member states, for the seven-year period starting next January.

The legislative path of these measures has not been the easiest. And it opened a heated confrontation mainly between the European Council, where the governments of the 28 EU member states are represented, and the European Parliament, where the deputies elected by universal ballot by European citizens sit. A confrontation that in certain passages of the complicated community process of forming laws has turned into a real institutional clash. Like when, at the end of October, the Assembly in Strasbourg flatly rejected the budget proposal for 2014 that the Council had presented as "not modifiable".

Rejection accompanied by a particularly severe "condition" (euphemism for not defining it as a "threat"). “If the Council does not approve the other amendment proposals to the 2013 budget (including the one requested by the Commission of 3,9 billion, the second installment of the integration referred to in the joint statement last December), Parliament will not give the consent to the EU's seven-year budget”, said Giovanni La Via, of the Parliamentary Budget Committee, rapporteur for the proposed amendments to this year's budget, in perfect harmony with the president of the same commission, the French Alain Lamassoure.

At that point, according to what the European Treaties prescribe, it became necessary to open a conciliation procedure which ended last week with an agreement which largely implemented Parliament's position. So that, consequently, the Strasbourg Assembly has turned on the green light both for the 2014 budget (which therefore will not open with a deficit, but will still be "an austerity budget", as defined by the rapporteur, the Danish Anne Jensen ) and for the seven-year period (which envisages 960 billion in commitments and 908 billion in payments). This financial framework, which will be reviewed by the end of 2016 and which in any case from the outset provides for flexibility options as regards spending times and methods, with the aim of fully using the (limited available resources.

Closely linked to financial availability are the reforms, also approved in this plenary session of the European Parliament, relating to cohesion policy and agricultural policy which, together, represent just over two-thirds of the outlays of the Community budgets, the seven-year and the annual ones . Policies both inspired, in the intentions of European legislators, by principles of efficiency and fairness.

Regarding the first, which has a budget of 325 billion to be used over the seven-year period, the president of the parliamentary commission for regional development, the Polish Danuta Hubner, clarifies that the new cohesion policy will reduce the bureaucratic formalities required so far to access to funding. And she underlines that "now the Member States and the Regions will be able to focus more on the impact of programs and projects, so they will be able to worry less about administrative technicalities".

“It will be necessary – he adds – to invest wisely, in line with the Europe 2020 strategy. So that investments in smart, sustainable and inclusive growth, as stated in the definition of that strategy, can lead the EU towards economic, social and territorial cohesion ”. With this in mind, all five EU development funds will be directed, again according to the intentions of the European legislator, towards a limited number of topics centered on the Europe 2020 objective, the European Union's global growth strategy. 

A new element envisaged by the reformed cohesion policy concerns the establishment of a close link between the disbursement of European funds and the economic "governance" of the recipient Member States. In the sense that the allocation of loans could be blocked, according to the new rules, "in the event of a national macroeconomic imbalance or excessive budget deficit". A form of conditioning which, associated with the new financial control powers assigned to the European Commission over the accounts of the member countries, will probably not please the governments of the more financially exposed states; and perhaps not even so much to the "stronger" ones (Germany, for example) who might not like an "intrusion" by Europe into national economic and financial policy choices.

As for the reform of the CAP, the common agricultural policy, which once committed almost the entire Community budget and to which today a slightly smaller share than that of the cohesion policy is allocated, the new rules are directed towards a more equitable distribution of resources available and a higher level of territorial protection. “The new CAP – says Paolo De Castro, president of the Agriculture Commission of the European Parliament – ​​will ensure a better balance between food security and environmental protection, and will better prepare farmers to face the challenges of the future”. Ensuring more substantial support to small and young farmers, and limiting that addressed to larger companies; also excluding airports and sports clubs, which have nothing in common with agriculture. Finally, the new rules provide for an initial period of two years during which, to allow farmers to adapt to the new environmental provisions, any violations will not be sanctioned.

Finally, the framework of measures approved this week by the European Parliament includes the launch of the Horizon 2020 programme, intended for research and innovation and endowed with an allocation of 70 billion for the next seven years; and Erasmus+, the new edition of perhaps the most successful program launched by the European Union.

“Horizon 2020 – comments Amalia Sartori, president of the parliamentary commission for Industry – will encourage scientific excellence in Europe, strengthen our industrial leadership and, of significant importance, will support small and medium-sized enterprises to which a share of 11 % of dedicated resources”.

Erasmus+ will bring together all the European programs for education, training and youth (Comenius, Erasmus, Erasmus mundus, Leonardo da Vinci and Grundtvig). It will be endowed with a budget of 14,7 billion to be used over seven years to help young people aged between 13 and 30 spend a period of study in an EU country other than their country of residence. Erasmus+ will fund scholarships for students, teachers, trainers and apprentices; and will also be accessible to volunteers and sportsmen. Finally, a portion of the program's budget will be used to finance the guarantee of subsidized loans for young people who will enroll in a master's degree in a foreign country.

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