Last June, after several trilogue meetings, the Presidency of the Council of the European Union, the President of the European Parliament, and the President of the European Commission reached a political agreement on the next Multi-annual Financial Framework for 2014-2020. The European Parliament approved the compromise deal in July but the Multi-annual Financial Framework for 2014-2020 still has to be formally adopted by the Council of Ministers and by the European Parliament. Under the Lisbon Treaty, the European Commission is required the draft budget for the following year before the 1 July. Hence, the European Commission drafted the 2014 budget taking into account the latest negotiations on the MFF.
On 26 June the European Commission presented the 2014 EU’s draft budget – €142.01 billion in commitments appropriations and €135.9 billion in payment appropriations, compared with €150.8bn and €144.3bn in the 2013 budget, which is around 6% lower than the 2013 budget. This is the first annual budget relating to the period of the new MFF. According to the Government “the first Budget of the new MFF period, respects the deal agreed by the European Council and is within the agreed 2014 ceiling”. The Government stressed, “the Budget will deliver not only a real-terms cut in spending but also a cash cut;”
It remains to be seen what will come out of the negotiations between the Council and the European Parliament. Whereas the Council is planning to make cuts to the Commission’s draft EU budget, the MEPs, unsurprisingly, want to increase it. The European Parliament has always sought a bigger budget for the EU than that proposed by the Commission and Member States. According to the EuropeanVoice, Anne Jensen, MEP on the Parliament's budgets committee, said “We are not in the mood to go below the Commission's proposal.”
The Council shall adopt by QMV the draft budget and forward it to the European Parliament. The Council’s formal position would be adopted in September, which will then serve as a mandate to the Lithuanian presidency to negotiate next year's EU budget with the European Parliament. The European Parliament’s first reading is scheduled for October. The budget is deemed to have been adopted if the European Parliament within 42 days from the Council communication approves the Council draft budget or has not taken a decision. If the European Parliament amends the draft budget, which is very likely to happen, the Lisbon Treaty provides for a Conciliation Committee to be convened. Whilst the MFF requires unanimity, the annual budget just requires a qualified majority of member states.
In the meantime, the Office of National Statistics published the Pink Book 2013, which shows the substantial increase in the UK's contributions to EU institutions. The UK’s net contribution to the EU has been substantially increasing since 2002. Whereas in 2002 the UK’s net contribution to the EU was £2.9 billion, £3.7 billion in 2009, £7.2 billion in 2010, £7.5 billion in 2011, it reached £9.5 billion in 2012.
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British taxpayers will continue to pay substantial amounts to Brussels. Last February’s agreement on the EU's 2014-2020 budget reached by the EU leaders was a victory for David Cameron. Due to David Cameron determination the EU leaders agreed to a multiannual financial framework that reduces EU expenditure for the first time in the EU’s history. Nevertheless, the UK net contribution is likely to increase. David Cameron recalled, at the House of Commons, that “the last government gave away almost half of our rebate” which “has had a long term and continuing effect on the UK’s net contributions.” Hence, because Tony Blair has given way an increasing amount of British rebate, as David Cameron pointed out “almost whatever budget deal was done, our net contributions were always going to go up”. But, he stressed, “as a result of this deal they will be going up by less.”
The time has come to say No and stop paying this vast amount of money for running the EU, which is a failing project. There is no clear added value in spending such amounts at the EU level. In fact, the EU has been spending UK taxpayer’s money on policies that clearly do not benefit them. It is outrageous that we have no say on how to spend the money we get back from Brussels. The UK Parliament should decide how the money should be spent; yet we have to follow the EU failing agendas.
