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After negotiating through the night, Parliament and the Council agreed on Tuesday 12 November to remedy payments shortfalls in in the current fiscal year. This was a prerequisite for Parliament to approve the long-run budget (Multi-annual Financial Framework – MFF) for 2014-2020, because MEPs wanted to prevent the EU from starting the first year under the new MFF with a deficit. The MFF was approved yesterday.
MEPs also ensured that the EU will compensate victims of catastrophic flooding and drought in 2013 and that Parliament’s priorities for 2014 in areas such as employment, research and innovation, border management and humanitarian aid are also taken on board.
Ms Anne Jensen (ALDE, DK), who steered the 2014 budget through Parliament, described the outcome as “an austerity budget” given that it is almost 6 per cent down on this year. “But I am glad we managed to secure more funds for growth policies for research, education and innovation and for humanitarian aid in the Middle East”, she added.
Parliament agrees to Council demands for Cyprus
Parliament in turn agreed to the Member States’ wishes to increase funding for Cyprus, which was part of the rescue package when it was on the brink of default.
What’s next?
EU ministers approved the 2014 budget at yesterday’s General Affairs Council. Parliament’s approval of the MFF yesterday paved the way for its final votes on individual EU programmes, many of which are being taken this week. This is the last step enabling all the new programmes to start, on time, on 1 January, 2014.
Statement by Commissioner Lewandowski
This is the first budget of the new financial period (2014-2020), a budget and a seven year financial framework born in times of crisis. Both reflect the current mood in Europe: the first shoots of economic recovery are showing but it is too early to talk about the crisis in the past tense.
Europe's 2014 budget reflects this very moment. It is 6% smaller than last year's budget, however compared to the Council's position it strengthens those areas that benefit Europe's future economic prospect: the Youth Employment Initiative is a new tool that will benefit many young Europeans who seek a job, it also includes programmes that help small and medium enterprises and support Europe's researchers.
The 2014 budget also takes into account recent events that demonstrate the need for stronger action at European level: following the Lampedusa tragedy, budgetary lines on migration and border controls are beefed up, and humanitarian aid for Syrian civilians, survivors of the typhoon in the Philippines or others in future, increases.
Yes, in future the EU will do far more than in the past with far less. The 2014 budget is the living proof of it."