Budget debate reaches dead end
When the United Kingdom officially presented its budget proposal two weeks ago, it was heavily criticized by other member states. The budget proposal reduced the total amount of expenditure by EUR 24 (zł.92) billion in comparison to the Luxembourg proposal presented in June, from EUR 871 (zł.3,349) billion to EUR 847 (zł.3,257) billion.
The cuts were particularly painful for the new, poorer member states, as aid to them would be reduced by EUR 14 (zł.53.8) billion, or 10 percent of the payout planned under the previous president's proposal. Under the plan, Poland would lose EUR 6 (zł.23) billion, and would get EUR 55.5 (zł.211.5) billion in aid. Understandably, the British budget proposal was met with heavy criticism from 'New Europe'.
Prime Minister Kazimierz Marcinkiewicz called the budget "unacceptable ... This is not a budget of solidarity, it is a budget that makes cuts rather than reforms by reducing the budget for new member states," he said. He was joined in his criticism by leaders of other CEE members. "[This proposal] does not help Central and Eastern Europe to catch up [with wealthier members] but preserves differences," Hungarian Prime Minister Ferenc Gyurcsany said.
Great Britain tried to appease the new member states by raising the rate of EU co-financing of development projects to 85 percent from the current level of 80 percent, as well as extending the time over which allocated funds can be spent. Marcinkiewicz welcomed the proposal, but considers it insufficient to offset the cuts in overall aid.
The budget proposal was also attacked by the wealthy members, who heavily criticized the British rebate. Although the UK offered to reduce its rebate by EUR 8 (zł.30.7) billion , it would still amount to EUR 6.6 (zł.25) billion annually on average, while in the Luxembourg proposal it would have been reduced to EUR 5.5 (zł.21) billion.
French Foreign Minister Philippe Douste-Blazy was very straightforward in his opinion of the budget. "We call on the British presidency ... to accept a substantial and lasting reform of the British rebate concerning enlargement spending," he said, pointing out where the cuts should be made.
A heated debate can be expected in the last days before the summit. All 25 member states must support the budget for it to be passed. It is inevitable that the UK has to make a new proposal, as the EU can't afford another fiasco following the failed Constitutional referendums in France and Holland.
