EU budget: Parliament urges member states to pay up and do a deal

"We cannot understand how the Council can have spent so much more time on dealing with its own problem [i.e. redistributing member states’ GNI-based contributions] than on delivering a budget for the EU as a whole,ˮ said 2014 budget rapporteur Gérard Deprez (ALDE, BE), reiterating that: ˮWe have an obligation to agree on a good budget for 2014 and 2015." MEPs again insisted on the need to establish clearly the amount of bills remaining unpaid at the end of 2014 before moving on to discuss the budget for 2015.Pay what’s owedˮOur proposal is easy to understand: we have to pay what we owe. We cannot delay payments to citizens, organizations, students. More than €28 billion in outstanding bills is awfulˮ, said Eider Gardiazábal Rubial (S&D, ES), one of the rapporteurs for the EU's 2015 budget.

“Parliament is ready to consider any proposal to solve the problem of unpaid bills. What we need from the Council is the political will to do it", she added. To solve the issue in the longer term, MEPs asked the Commission to present a plan gradually to reduce the sum of unpaid bills, which grew from €5bn in 2010 to around €28bn by the end of 2014.

Enough there for the most urgent bills

ˮNobody understands that we have the money, yet we cannot pay because member states prefer to pocket it themselvesˮ, said the other rapporteur on next year's budget, Monika Hohlmeier (EPP, DE), referring to the €5bn in unexpected revenue, mostly from fines, that member states have been reluctant to use to pay the most urgent bills, which according to the Commission currently total €4.7bn.

Council's last-day starting position 'unacceptable'

Parliament’s talks with the Council this year were rendered particularly difficult by the Council’s failure to state its negotiating position until the final day of the 21-day period allowed.
ˮIn fact only half of the two-party budgetary authority worked,ˮ observed Budgets Committee Chair Jean Arthuis (ALDE, FR), adding that it was “unacceptable” that member states had sent its representatives to the talks without a mandate.

Next steps

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The European Commission is to present its new budget proposal on 28 November, which leaves two weeks for negotiations between the Parliament and the Council before Parliament could vote on an agreed text, at the last plenary session of the year in December. If there is no deal on the 2015 budget by 1 January 2015, the EU will have to run on 'provisional twelfths', i.e. one twelfth of the 2014 amount or that of the 2015 draft budget, whichever is lower, chapter by chapter, for each month. ˮThis would put our citizens at risk, with many more difficulties to deliver resources when needed,ˮ said Budgets Commissioner Kristalina Georgieva.

Procedure: Co-decision, 1st reading