Malta has had its second "victory" during talks over the next EU budget, assuring itself of a few more millions of euros in its final financial package.
This became possible after the Luxembourg presidency accepted Malta's plea to change the so-called distribution key connected to the cohesion funds. The new distribution key takes into account the island's highly dense population and its small size.
The distribution key is a mathematical formula used by the EU when distributing cohesion funds. Until now, the formula was intended to help sparsely populated regions in the EU by providing additional funding. As a result of Malta's insistence, this will now be adjusted to take into account the other side of the coin, by also helping very populous regions or island member states.
Council sources told The Times that in the latest set of budget proposals tabled by the presidency, Malta was "accommodated" and the necessary changes to the distribution key were made. Asked whether this was still a proposal, the sources explained that "although it is still a proposal, just like any of the others, there should be no problem for the other member states to agree on this change."
Malta's specific situation was the main topic of discussions held in Luxembourg last week between Prime Minister Lawrence Gonzi and Luxembourg's Prime Minister Jean Claude Juncker who holds the EU presidency.
The insertion of the distribution key factor was the second concession given by the presidency to Malta. Last March, following intense diplomatic pressure by the Maltese authorities, Malta was declared as qualifying for Objective 1 status giving the country the possibility to qualify for the highest amount of funds possible in the next EU budget.
Meanwhile, as discussions over the next budget between member states and the presidency continue, reaching a peak next week during the EU summit, the European Parliament yesterday endorsed its stand over the budget.
With 426 votes in favour, 140 against and 122 abstentions, Parliament adopted a report setting out the figures the European Parliament will defend in the negotiations with the Council on the next Financial Perspective 2007-2013.
According to the European Parliament, payment appropriations should be at 1.07 per cent of the European Union's Gross National Income (GNI), amounting to €883 billion over seven years. The commitment appropriations would be capped at 1.18 per cent of GNI, amounting to €975 billion in the 2007-2013 period.
Parliament's position differs from that of the other institutions. The European Commission is proposing payments of 1.14 per cent and commitments of 1.24 per cent whereas the latest compromise from the Luxembourg presidency proposes 1.06 per cent in commitments.
Parliament's rapporteur on financial perspectives, MEP Reimer Boge, following the vote that said Parliament had agreed on a realistic proposal, setting new priorities.
"Now it is important to quickly reach an agreement with the Council," he said.