EU Update – December 2005
Brussels Summit special edition!
Download the EU Update here - MS Word 283kb
Unless you have recently turned into a news-shy hermit or are reading this in a far-flung part of the planet where BBC News 24 does not penetrate, you will have gathered that Tony Blair is in Brussels today, fighting to achieve agreement on the EU budget for 2007-13, amongst other things.
This summit forms the end of the UK’s 6-month presidency, and there is popular speculation that neither of the two forthcoming presidencies ( Austria to June 2006, Finland then to December 2006) are as well-placed to secure agreement.
This briefing examines the content of the UK’s latest budget proposals and what they might mean for Cumbria
Prior to the summit, the UK government has produced a budget proposal (known as the ‘negotiating box’) as a starting point for negotiations. The full task is available at:
http://www.fco.gov.uk/Files/kfile/eu2005_FinancialPerspectives2007-13_Proposal,0.pdf
This indicates a further reduction to the overall EU budget (equivalent to 1.03% of combined GNI, compared to the 1.06% proposed by the Luxembourg presidency in June, or the 1.14% proposed by the Commission last year). An updated version was released yesterday (14 December) with only small modifications, mostly aimed at placating the new member states.
What is proposed?
The negotiating box is summarised by 5 key budget lines. The key features of each of those budget lines within the UK proposals are:
1A: Competitiveness for Growth and Employment . This includes the R&D programmes, such as the Seventh Framework, and is unchanged from the Luxembourg proposal at €72bn. (although much less that the €132bn in the commission proposals). It is made clear that nuclear decommissioning would be financed from theis area, with special provision made for sites in Slovakia and Lithuania.
1B: Cohesion for Growth and Employment : this includes the Structural Funds and Cohesion Fund. The total UK proposal, at €299bn, is slightly less than the €306bn in the Luxembourg proposal, but most of the reduction has been accommodated within the Convergence strand. The amount for Regional Competitiveness is in fact €0.5bn. more (although about 20% less than the Commission proposed).
2: Preservation of Natural Resources. This includes CAP, fisheries and Natura 2000. There is little scope for manoeuvre here, although the UK proposed trimming the non-farm payments aspects (such as the rural development regulation) from €82bn to €74bn.
3: Citizens, Freedom, Security And Justice – big reduction here (€17bn to €10bn), mostly from culture, youth, health and consumer programmes.
4: EU as a global partner . No change from the Luxembourg proposals
5: Administration . Slight decrease from Luxembourg proposals.
What might this mean for Cumbria?
At the moment, the prospect of a ‘special programme’ is unlikely. The negotiating box contains a number of special provisions (paragraphs 43 to 54) that detail specific arrangements for Northern Ireland, the northern Swedish regions, the Canaries and Madeira, and so on. No mention of Cumbria or of declining regions here.
The UK allocation of structural funds is likely to be unchanged. The figure of €14 per head is still about right. The question is how that will be allocated within member states; that is a question for national governments, and has not been publicly addressed yet.
Other programmes continue to remain important. There is no proposed change to the transnational programmes, and R&D programmes such as the seventh framework. They must continue to be part of the EU funding mix in Cumbria. The biggest reduction is in the area of culture, media and youth programmes – none of which are particularly well-represented in Cumbria at present.
The Rural Development Plan will be trimmed slightly. In the UK, 80% will be used for agri-environment schemes administered by DEFRA, the remainder for wider socio-economic programmes administered (possibly) by RDAs. For this latter, estimates of £1million p.a. for Cumbria continue to be of the correct order of magnitude.
What next?
By the end of tomorrow (Friday 16 th December) we will know the outcome of the summit. The RST will produce another briefing next week, analysing the outcomes and the next steps for EU funding.