European Parliament changes EU budget approval system

The Budgets Committee of the European Parliament yesterday unanimously adopted a draft resolution which formally terminated an agreement reached seven years ago on how the present seven-year budget ending this year should be approved by Parliament.

The move allows the European Parliament to start approving the EU budget on an annual basis, as against the present seven-year system, in case the ongoing negotiations between the Parliament and the Council on the 2007-2013 budget fail.

Sources close to the European Parliament played down the move describing it as just a tactical one aimed at putting more pressure on the current talks. The sources said that in reality both the Council and Parliament are expecting to be able to reach a deal by the end of this month.

The sources added that the deal would probably not involve any changes to the total amount of money allocated by EU leaders last December. However, it will entail changes to the specific allocations of certain programmes. These will probably include an increase in funds dedicated to educational programmes that will be deducted from other allocations.

The next meeting between the institutions on the financial perspectives is set for March 21 where a final agreement is expected to be reached.

The European Parliament's plenary session will finally have to vote on the entire package, probably during the April session in Strasbourg.

The resolution adopted stresses the committee's willingness to "achieve an agreement on the next long-term spending plan".

MEPs Simon Busuttil and Louis Grech are members of the Budgets Committee.

Under the next financial perspectives, Malta was allocated €805 million for the period 2007 - 2013. The money can only start being used following the approval of the European Parliament.