Labour MEP Louis Grech, who earlier this year was appointed by the European Parliament as its rapporteur on the 2007 budget for all EU institutions, except the Commission, yesterday insisted with the EU presidency on the cuts he is proposing in his report.

During a trialogue meeting with the Commission and the Council held in Brussels, Mr Grech reaffirmed his opinion that financial savings should be made in order to ensure more fiscal discipline with regard to taxes paid by EU citizens.

In his report, approved at committee stage last week by the European Parliament's budgets committee, Mr Grech opted not to accept the request made by Parliament for an additional allocation of €19 million for thepurchase of property. He said this was not needed and kept the same level of financial allocation as last year.

The Grech report also proposes more cuts in the financing of interpretation and translations services, the building of a new visitors' centre and the setting up of a web-based TV station for the European Parliament.

Speaking to The Times, Mr Grech said he is very satisfied with the level of backing being given by the budgets committee. As for the other institutions, Mr Grech said that in his report he has managed to reduce by 35 per cent the level of original funding requested by various institutions such as the Committee of the Regions, the Court of Justice, the Court of Auditors and the European Economic and Social Committee.

Mr Grech led the European Parliament's delegation during discussions with the secretary generals of all the institutions involved in the budget.

The European Parliament is now expected to vote at first reading on the 2007 budget during next week's plenary session in Strasbourg.