EU budget gets final approval

The European Parliament yesterday gave its final approval to the European Union's budget for the period 2007-2013.

During a vote in Strasbourg, the EU's financial perspectives were approved by 440 votes in favour, 110 against and 35 abstentions. All Maltese MEPs voted in favour.

A deal was originally reached between member states on the financial perspectives at last December's summit under the UK presidency.

However, MEPs were not in favour of the deal and asked for additional funds. Tough negotiations between the European Council and Parliament resulted in an additional allocation of €4 billion spread over the seven-year period.

Although approved, MEPs yesterday still underlined some points which have to be revisited such as the need to resolve a number of shortcomings, including funding, during a budget review scheduled to take place in 2009. This was one of the main compromises which enabled MEPs to give their final green light.

During a formal ceremony following the vote, the final agreement was signed by European Parliament president Josep Borrell, Austrian Chancellor Wofgang Schüssel, representing the EU presidency, and European Budget Commissioner Dalia Grybauskaite.

Mr Borrell said after the signing that the EU will cost just €0.26 a day per inhabitant in the coming seven years.

"We certainly can't consider that as expensive," he joked.

Ms Grybauskaite said the deal confirms that under the new financial framework for the period 2007-2013, the Union will have at its disposal the necessary funds to secure the development of an enlarged Europe and to guarantee that new member states will become full participants in all EU policies. In total, yesterday's agreement sets the global level of commitment appropriations at €864.3 billion (at 2004 prices), equal to 1.05 per cent of the EU gross national income for the period 2007-2013.

The agreement also provides for additional funding under certain emergency and flexibility instruments.