The rise in Malta’s contribution to the EU Budget will be limited to €2 million next year if negotiations between the European Parliament and Council are concluded in line with member states’ wishes.
The EP had originally asked member states for a rise of 5.9 per cent in the EU Budget. However, the UK and 12 other member states, including Malta, are resisting it, arguing an increase of this size would be out of sync with the austerity measures being announced across the EU to control rising deficit and debt levels.
During a recent summit in Brussels, Prime Minister Lawrence Gonzi signed a letter, penned by British Prime Minister David Cameron, calling for the EU’s 2011 budget not to exceed 2.9 per cent on what had been agreed during the negotiations for the seven-year financial plan covering 2007-2013.
Sources close to the negotiations told The Times that according to preliminary figures, the increase in Malta’s contribution in 2011 would not exceed €2 million if the Council and the EP stuck to the 2.9 per cent capping.
“Our calculations are that our contribution will only increase minimally. However, if the EP has its way, which is very unlikely, Malta’s contribution to the EU coffers next year would have to increase by €4 million.”
Officially, the Maltese government is keeping mum on the extra amount Malta will have to fork out as a consequence on the ongoing discussions. A government spokesman said when contacted that it was still “premature” to give figures while the negotiations were still under way. Asked to explain what the Prime Minister’s decision to back a 2.9 per cent rise-capping meant in reality, the spokesman said: “Malta’s contribution to the 2011 EU Budget will fall within the limits agreed in the overall package for the full Multiannual Financial Framework 2007-2014 as agreed to in 2005-6.”
According to recent data published by the Commission, Malta contributed a total of €64.3 million to the EU coffers in 2009 while it received €71.5 million.
In 2010 and 2011, Malta is expected to rake in more funds as the projects financed by the EU have gathered momentum and allocations of money from its coffers will be more substantial.
Since its accession to the EU in 2004, Malta has received twice as much as it contributed, leaving a positive balance in Malta’s favour of about €350 million.
Malta was allocated more than €1 billion to finance projects in the 2007-2013 financial period.
Meanwhile, negotiations, technically called “conciliation”, between the European Commission, the EP and the Council continued yesterday with a discussion about the cardinal figures in the 2011 budget.
Melchior Wathelet, the Belgian secretary of state for the budget, speaking on behalf of the Council, reiterated that member states would insist on a maximum 2.9 per cent increase in payment appropriations compared to 2010.
He added, however, that the Council was prepared to allow more flexibility within this limited increase.