Back to the budget

Anna Sonny, 28 June 2013

After the deal reached in February was rejected by the European Parliament, a new agreement on the EU budget has been reached by EU leaders.

The budget has not changed in size, but in structure; the figure remains at 960 billion euros but more flexibility in spending will allow the money to be disbursed when and where it is needed.

With youth unemployment in Europe at a record high, reaching a staggering 50% in some parts of Greece and Spain, schemes to get young people into work feature as a main priority. It is possible that early payments will be made for these programmes, as well as programmes on research, education and small businesses.

Plans were also drafted on agricultural reform and banking bailouts, with agreements being made to protect savers as much as possible.

In the deal made for 2009-2013, around 50 billion euros of left over money was reimbursed back to member states, but the agreement made for 2014-2020 has not left room for any spare cash; it will all be spent.

The deal will need to be agreed by MEPs next week. As usual, it seems to be a compromise between MEPs who seem happy to spend as much as possible, and member state leaders who are keen to cut back on spending in order to reflect the austerity measures being pushed through domestically.

The first real terms cut in spending does mask an actual increase in spending on administration in Brussels; spending on the EU’s mammoth bureaucracy will increase by 1.5%, part of which will cover the cost of final salary pensions for EU officials.

When compared with the 144,000 civil service job cuts and further cuts to spending in British Government departments announced in the spending review this Wednesday, it is clear that the sacrifices being made at national level are not being made within the body of the European Union itself.