New EU budget proposal due by end November: Barroso
Jose Manuel Barroso - photo EP
(STRASBOURG) - European Commission head Jose Manuel Barroso said Tuesday that his services will present a new proposed 2011 budget for the EU at the latest by November 30.
He told Members of the European Parliament sitting in Strasbourg that the plan to break an embarrassing deadlock between the parliament and member states over budget flexibility and future spending priorities would be ready "over the coming days."
Barroso's intervention came as the parliament readies to vote on a resolution on Thursday, 24 hours later than originally planned, stiffening the legislature's resolve to hold out in tough negotiations with states led by Britain that want to limit EU budget increases and restrict increased powers conferred on the parliament under the Lisbon treaty.
"We will use our right of (law) initiation to present formal propositions on own resources before the end of June 2011," Barroso said to round applause.
Despite agreement on all sides to grant a 2.91-percent raise on last year's numbers, lawmakers have dug in their heels in a battle of wills over future financing of the EU, which is currently three-quarters funded by states.
The breakdown centred on "flexibility" for 2011, which would see an additional 3.4 billion euros of overdraft-like funds made available; and because of differences on how to debate the development of new "own resources," which opponents fear means direct EU taxes on citizens and businesses.
EU national leaders are expected to grapple first-hand with the schism between the bloc's institutions at a mid-December summit.
Leading French Green Daniel Cohn-Bendit said the negotiations could if necessary take "two, three or four months," during which the EU would have to operate on monthly figures based on last year's spending capabilities of 123 billion euros (around 170 billion dollars).