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Discussing Financial Framework 2014-2020
Topic Started: Jan 19 2013, 06:40 AM (425 Views)
Jos1311
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Posted Image Pieter de Gooijer
Permanent Representative to the European Union
_____

The European Council has already initiated a new negotiating round on the Multi-Annual Financial Framework for the time period 2014-2020, which preserves the balance and order of priorities of the Commission proposal but foresees significant reductions in overall amounts allocated. The Netherlands agrees that the future European budget must be a catalyst for growth and jobs, but also emphasizes that we need the right balance between investing in the right policies for growth and jobs and a shared commitment to better spending. This also means recognising the value added that our common European policies provide in tackling Europe's challenges and in enabling the Union to play its role on the international stage.

This year we should lay the general foundation for the European budgets for the years to come. And while the Netherlands firmly believes in European cooperation and aims towards more cooperation between the member states, the Netherlands also will be seeking a fairer distribution of the financial commitments towards the Union. The Netherlands, together with several other member states, has already rejected the proposal of the Commission, as we find it impossible to increase European spending, while most of the member states have to reduce their general expenditures.

While the current proposal of the Commission has the support from the majority of Member States and the European Parliament, we urge the other member states to seriously reconsider the proposal. The Netherlands would like to state that all member states should aim towards working constructively in finding an outcome that all Member States and the European Parliament can support. On behalf of the Netherlands I therefore call on everyone to come together in a true European spirit so that we have a European budget that represents the interest of all.

The Netherlands would like to propose that the budget for 2014 and beyond will not differ that much with this year's totals, while at the same time the expenditures and revenues will be closely examined. To be more concrete we would like to propose a maximum net contribution to the European Union budget. For years various nations, such as Luxembourg, Italy, Finland, Sweden, the United Kingdom, Denmark, Germany, and the Netherlands have been large net contributors to the budget. While the Netherlands understands this, and is more than willing to remain one of the largest net contributors to the budget, I must also state that there should be a better balance between the differences of the net contributors and receivers of the budget. A tool for this would be the introduction of regulations seeing that no nation will be net contributing more than 0.30% of its GDP.

Some information on the MFF
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C.E
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Posted Image Nicolai Wammen, Minister of European Affairs

Mr. de Gooijer,

While I respect the decision of the Netherlands in terms of its contribution, I must say that the net figure does not receive the support of Denmark. We among the four largest net contributors in per capita and four largest net contributors as a proportion, hence drastic steps must be taken in order to show the gratitude of the Union towards Denmark after years of steadfast financial support. I can propose that we lower our demands for a net rebate and go from 1.14 to 1.25. Hereafter we will like to receive a similar percentage as that of Austria and Finland, therefore we propose and can support Denmark contributing with 1.50% from 2016 until 2020 meaning, 1.25 in 2014 and 1.50% onwards.

Finally it would beinteressting to see the position of Germany, France and United Kingdom. Especially the latter which has on many occassion called for influence within the Union.
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C.E
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Posted Image Nicolai Wammen, Minister of European Affairs

Seeing that no other within the Union disapproves. I will formulate a revised "PERCENTAGE OF BUDGET PER MEMBER STATE" prepared by Mr. de Gooijer.
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C.E
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Posted Image Nicolai Wammen, Minister of European Affairs

Established upon the framework provided by the Dutch representative, I would like our friends within the Union to evaluate the following:

PERCENTAGE OF BUDGET PER MEMBER STATE2014201520162017201820192020
Austria1.43%1.47%1.47%1.47%1.47%1.47%1.47%
Belgium5.25%5.06%5.01%4.96%4.91%4.86%4.81%
Bulgaria0.86%0.82%0.78%0.78%0.75%0.75%0.75%
Cyprus0.14%0.10%0.10%0.10%0.10%0.10%0.10%
Czech Republic2.34%2.31%2.25%2.10%2.02%1.94%1.86%
Denmark1.25%1.50%1.50%1.50%1.50%1.50%1.50%
Estonia0.39%0.35%0.35%0.35%0.35%0.35%0.35%
Finland0,98%1.32%1.37%1.37%1.37%1.37%1.37%
France10.15%9.82%9.82%9.82%9.77%9.77%9.72%
Germany9.37%9.77%9.90%9.90%9.95%9.95%9.95%
Greece5.05%5.01%5.00%5.00%5.00%5.00%5.00%
Hungary4.12%3.96%3.95%3.95%3.95%3.92%3.90%
Ireland1.26%1.46%1.50%1.50%1.50%1.50%1.50%
Italy7.39%7.43%7.43%7.43%7.43%7.43%7.43%
Latvia0.70%0.66%0.66%0.66%0.66%0.66%0.66%
Lithuania1.28%1.24%1.24%1.24%1.24%1.24%1.24%
Luxembourg1.20%1.10%1.10%1.10%1.10%1.10%1.10%
Malta0.10%0.10%0.10%0.10%0.10%0.10%0.10%
Netherlands1.60%1.90%1.90%1.90%1.93%1.93%1.93%
Poland11.15%10.73%10.51%10.29%10.07%9.91%9.81%
Portugal3.64%3.52%3.50%3.50%3.50%3.50%3.50%
Romania2.05%1.97%1.97%1.97%1.97%1.97%1.97%
Slovakia1.38%1.33%1.33%1.33%1.33%1.33%1.33%
Slovenia0.65%0.63%0.63%0.63%0.63%0.63%0.63%
Spain10.51%10.11%10.01%9.91%9.81%9.71%9.61%
Sweden1.36%1.68%1.78%1.78%1.78%1.78%1.78%
United Kingdom5.08%5.38%5.48%5.53%5.58%5.63%5.73%
Figures are percentage of total EU budget for the corresponding year

Hopefully we can all agree to this budget allocation.[/font]
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C.E
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Posted Image Nicolai Wammen, Minister of European Affairs

I call upon representatives of Germany, France, the United Kingdom as well as other members of the European Union to address our proposal. Currently we assess that the lack of statements is due to other members approval of our proposal, and hence we will go about a voting session so that we can meet the requirements of new EU budget for 2014-2020.
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PolishPrince
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Posted ImageSir Jonathan Stephen Cunliffe, CB.
Permanent Representative to the European Union

_____

The United Kingdom supports the decision to freeze the administrative budget, but believes the freeze should last until the year ending 2019. This would allow for a thorough and complete assessment of administrative spending, with the first rise in spending not occurring until 2020.

We would also believe that the global Europe fund should be frozen at $13,220 from the years 2014-2018, with modest funding increases in 2019 ($14,494) and 2020 ($14,860).

While we strongly support the Smart and Inclusive Growth Fund, we would prefer to see more a more modest funding increases which look something like:

2014 - $89,199
2015 - $91,500
2016 - $92,276
2017 - $94,366
2018 - $96,782
2019 - $98,633
2020 - $ 102,355

In total, these amendments would save the European taxpayer around $16,780; a portion of which we believe should go towards easing the cuts made to the Sustainable Growth fund. We would prefer to see the Sustainable Growth fund altered to something similar to:

2014 - $72,699
2015 - $71,233
2016 - $71,233
2017 - $71,233
2018 - $71,123
2019 - $70,698
2020 - $70,523

In total our amendments would shave around $2.952 from the budget and would allow for a more ethical reduction to the environmental fund.

((OOC: I will edit this out once I've got an answer... But I was wondering if I'd correctly assumed that the Sustainable Growth: Natural Resources fund is for investing in green technologies such as off shore wind turbines produced in the UK and for subsidies like off shore wind farms along the British coast? :P)
Edited by PolishPrince, Feb 16 2013, 03:02 AM.
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Jos1311
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Peter Tempel
Permanent Representative to the EU


While Germany can commit itself to thorough assessment of the administrative spending, it cannot in good will agree to freeze the spending for the entire time frame. Berlin can also not support a freeze to the Global Europe budget, as this would seriously endanger various types of projects that are currently under way, while cuts to the Smart and Inclusive Growth Fund and allocation of these cuts to the Sustainable Growth fund are unacceptable. For years we have been advocating to reduce the payments to agricultural sector, in order to increase the sectors efficiency. I believe it is time that Europe starts investing in the economy of the future and reduce the spending towards agriculture.

While Germany in general supports the ideas put forward by the Danish representative, I must express my concerns at the large cuts that are being made to the budgets of the poorest and newest EU members. I hope that we can arrange that these cuts will be less dramatic than proposed. Germany is willing to provide a substantial amount of the increase it has been granted to these member states. I express my hope that others are willing to do so as well.
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Jos1311
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Posted Image - Peter Tempel
Permanent Representative to the EU
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Germany calls upon its European partners to speed up the talks about the MFF for 2014-2020. We have been discussing these matters for months and are still nowhere near completing them. I emphasize the importance of this matter and call upon all to actively participate in the talks. With that said I must express my disappointment with the outcome of the EU referendum in Britain, the timing of the referendum was ill-planned and the uncertainty that this has created within the EU could not have come at a worse time. While London has contacted Berlin to discuss the matter, I urge London to start multi-lateral talks with all European partners, as the matters concerns all member states and Berlin has already clearly stated that Germany wants Britain in the EU, but not at any price. Berlin also emphasized that cherry picking is not an option, and that there is no option for Europe a la carte.

With that said these talks are about the Multi-Annual Financial Framework for the time period 2014-2020, and I urge the other representatives to be more active in that discussion.
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winisle
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Philippe Etienne
Ambassador Extraordinary and Plenipotentiary
Permanent Representative to the EU for France


France takes the following position:
- We agree to the cap on contributions at 0.3% of GDP. We regret that the Unions richest nations feels a need to have this contribution reduced even further, but can agree to the caps discussed, but no further.
- On the specifics, we do not support an wage cut for EU employees, but would instead propose a two year wage freeze, restrictivness in empolyment for a similar time, in order to affect similar savings.
- We agree to the Dutch proposal on the Cohesion cap and subsequent reduction.
We must warn against the reduction of the Global Europe funds, as they are important, and France will in the near future present plans for how to use a portion of these funds to move the European Union towards energy independence, and towards more modern technology.

This said, France in general supports the proposed Financial Framework.

Edited by winisle, Feb 22 2013, 12:40 AM.
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Jos1311
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Posted Image - Peter Tempel
Permanent Representative to the EU
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At the end of 2012 the 50,000 EU officials received a pay rise of 5.5 percent. Berlin finds this unacceptable, as in many of the member states large cuts had to be made. Of these 50,000 some 10,000 have a higher salary (after taxation) than the Prime Ministers in various member states. While Berlin considers the EU to be very important, it is becoming more and more clear that the payments to the staff are out of line with what is happening in most member states and that they do not follow the economic developments. As a result of this Berlin proposes a freeze of the salaries until a thorough investigation into the matter has been completed and a decision to be made on it after completion of the investigation. Berlin emphasizes that the increases in salary and matters aligned to it only serve to further alienate the EU from the public it is representing.
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winisle
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Philippe Etienne
Ambassador Extraordinary and Plenipotentiary
Permanent Representative to the EU for France


France fully agrees with Germany on this matter.
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