17 November Budget Council

Date: 23/11/1995

EU budget ministers accepted some of the amendments agreed by the European Parliament to next year's spending programme, raising the total to 86.288 billion ecu. But they overturned attempts by MEPs to cut funds for the Union's Mediterranean programme and for Trans-European Networks (TENs), allocating 900 million ecu to the first and 474 million ecu to the second. Spanish Economics Minister Pedro Solbes was in no doubt about the sums involved. “The message to the Mediterranean countries is clear: there will be 900 million available if there are projects for that,” he said.

IN a bid to bridge the divide between governments and MEPs, who had earlier this month tabled a different set of priorities for EU spending in 1996, the Council organised a lunch-time meeting for a 15-strong delegation from each institution. Disagreements remain over TENs and the Mediterranean programme, but participants insist that the views of both sides on a number of issues were brought closer together.

MINISTERS stressed the importance to them of the EU's international fishing agreements, on which they have decided to spend 280 million ecu, and of the various new Community agencies. The European Parliament is trying to use the budgetary process to gain a tighter hold over these bodies. Ministers agreed to place 10&percent; of their budget in a reserve fund and, along with MEPs, asked for a report by the end of July setting out the internal financial management and budgetary improvements which needed to be made to the agencies.

Euro MPs will have another opportunity to shape the final 1996 budget when they vote on the financial package in Strasbourg in mid-December.

BUDGET Commissioner Erkki Liikanen used the meeting to brief ministers on the latest report from the Court of Auditors and the first statement of assurance from the auditors. This gave the Commission a clean bill of health in handling EU revenue and expenditure, but was highly critical of the way certain payments were made both by the Commission and by member states. He stressed the need for legislative improvements and more clarification with better evaluation at all stages of projects.

As part of the process, it was agreed that a high-level group of national officials, under the chairmanship of the Commission, will be established early next year to identify the changes which need to be made to respond to the criticism from the Court of Auditors.