European Parliament
European Parliament © Cédric Puisney 1 November, 2013

Parliament proposes higher budget than Council for 2014

The European Parliament has reversed the Council of the European Union’s proposed cuts in research and employment expenditure planned for 2014 following a plenary vote in Strasbourg.

The ballot saw MEPs vote 480 in favour, 119 against and 86 abstentions. The Parliament proposes a 2014 budget of €142.6bn in commitments and €136.1bn in payments, amounts lower than the 2013 budget by €8.1bn (commitments) and €4.3bn (payments) respectively. The Council had previously reduced the European Commission’s budget proposal by €240m in commitments to €141.8bn, and €1.06bn in payments to €134.8bn.

According to the Parliament’s ‘Resolution of 23 October 2013 on the Council position on the draft 2014 general budget’, the reduction proposed by ministers would particularly affect Horizon 2020, which would see a €43.7m cut, in addition to a €500,000 reduction for COSME. In the document, the Parliament says that it: “deplores the fact that this openly contradicts the spirit and the letter of the political agreement on the Multiannual Financial Framework (MFF) that includes arrangements for specific flexibility to tackle youth unemployment and strengthen research.”

In a press release, MEPs said they wanted to ensure areas ‘vital to boosting the economy’, namely the digital agenda, research, entrepreneurship and (youth) employment measures, did not see cuts in spending. MEPs followed the recommendations of the Parliament’s Budget Committee to reverse the €629m payment reductions proposed by the Council in July, and to top-up the budget with an extra €34m.

The chair of the Parliament’s Budget Committee Alain Lamassoure cited many outstanding budgetary issues. “We have negotiations ahead on a jumbo package, including the amending budgets for 2013, the 2014 budget and the 2014-2020 MFF. The Parliament is taking its responsibility this week by fast-tracking draft amending budget No. 6, which is needed to enable the Commission to pay the bills due from November onwards. All of us, the Council, the Commission and the Parliament, will now have to take their responsibilities in the difficult negotiations ahead. But let one thing be clear: Parliament will not allow deficits to be rolled over to next year.”

Following the plenary vote last week, the Parliament and Council have a 21-day ‘conciliation’ period in which to strike an agreement. If conciliation produces an agreement, it will be put to a final vote at the November session.