EU Budget to Be Cut for First Time in 56 Year History
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The European Union on Friday edged closer to a historic budget cut after 18-hours of talks in Brussels, with most of the cuts coming from the bloc’s administrative budget.
In total, the 960 billion euros budget deal is 12 billion euros less than the previous budget proposal for 2014 to 2020 mooted in November, and 33 billion euros less than the current budget.
If approved by the bloc’s 27 leaders, the new figures would mean a first-ever EU budget cut in its 56-year history.
The European Union on Friday edged closer to a historic budget cut after 18-hours of talks in Brussels, with most of the cuts coming from the bloc’s administrative budget.
In total, the 960 billion euros budget deal is 12 billion euros less than the previous budget proposal for 2014 to 2020 mooted in November, and 33 billion euros less than the current budget.
If approved by the bloc’s 27 leaders, the new figures would mean a first-ever EU budget cut in its 56-year history.
European Council president Herman Van Rompuy presented his budget proposals in Brussels at 6am on Friday, with one official describing the night of haggling between European leaders as like a “bazaar”.
The source added:
[quote] Growth has been the victim of the bazaar. [/quote]
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Most of the budget savings came from reductions to pro-growth cross-border transport, energy and telecoms projects as well as pay and benefit cuts for EU officials, while leaving untouched agriculture subsidies which makes up a huge proportion of the budget and of which France is the biggest subsidiary.
At heart of the budget disputes between European leaders was a clash between demands led by Britain for a spending freeze compatible with the austerity sweeping the eurozone’s weaker economies, and an informal French and Italian alliance calling for more robust spending to counter the effects of recession.
French President Francois Hollande had made clear even before the talks began that he wanted to challenge Britain when he led a troika of France, Italy, and Spain apparently resolved to collectively resist Downing Street.
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Thursday’s talks began acrimoniously with diplomats confirming that France was the cause of “difficulties” at the summit, adding that Hollande had failed to attend a scheduled meeting with British Prime Minister David Cameron, German Chancellor Angela Merkel and Van Rompuy.
Britain interpreted Hollande’s absence as a snub, but French officials denied any invitation had been made.
“Hollande was not even answering his mobile,” a senior EU official complained. “The French are playing tough, very tough, more so than in November,” when a previous summit foundered on Cameron’s insistence on cutting 30 billion euros from the proposed budget.
Officials on Friday warned that another budget failure would be far more costly because it could be at least a year before they could resolve the matter – a delay that would cast uncertainty over billions of euros in EU spending.
