European budget negotiations blocked

The European budget talks have hit a major obstacle. The Europrean Union governments and the European Parliament have been unable to come to an agreement
European budget negotiations blocked
11/17/2010
Updated:
11/17/2010
[xtypo_dropcap]E[/xtypo_dropcap]uropean budget talks for 2011 between European Union governments and the European Parliament (EP) broke down as some member states resisted a bigger EP influence in the budgeting process. Representatives of the EP and the Council of Ministers representing the governments could not reach an agreement concerning the future influence of the EP in establishing the budget.

The European budget is established yearly and covers every euro spent by the EU government. Earlier this year, the Lisbon Treaty made the EP share responsibility with the Council of Ministers for the entire budget. Both parties agreed on a budget increase of 2.9 percent for the coming year. But EP President Jerzy Buzek regretted that “a serious agreement on rules and procedures” concerning the future role of the EP in budgetary negotiations was blocked by a few member states, the EU website stated. The United Kingdom and the Netherlands could not agree with a flexibility clause assigning an additional 4 billion euro (US$5.4 billion) to the EP and giving the EU its own financial resources, making it less dependent on individual member state resources.

The processes have to start over now, taking roughly two and a half months. Until an agreement is reached, the budget for 2010 will be the one used 2011.

Jose Manuel Barroso of the European Commission was upset at not reaching an agreement and said some members states have dealt a blow to Europe by blocking an agreement on the European budget 2011.