18 Draft Budget 2010
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| Draft General Budget of the European Communities for the financial year 2010
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| Legal base | Article 272 EC; QMV; the special role of the European Parliament in relation to the adoption of the Budget is set out in Article 272
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| Department | HM Treasury |
| Basis of consideration | Minister's letter of 17 November 2009
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| Previous Committee Report | (a) HC 19-xxvii (2008-09), chapter 34 (14 October 2009) and HC 19-xxxi (2008-09), chapter 14 (11 November 2009
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| To be discussed in Council | 18 November 2009
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| Committee's assessment | Politically important
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| Committee's decision | Cleared (decision reported 14 October 2009)
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Background
18.1 The Commission's Preliminary Draft Budget (PDB) is the first
stage in the Community's annual budgetary procedure. We reported
on the 2010 PDB in June 2009[62]
and it was debated in European Committee on 6 July 2009.[63]
The second stage is the adoption by the Council of the Draft Budget
(DB). The 2010 DB was adopted on 10 July 2009 and we reported
on it in October 2009.[64]
The 2010 PDB and the 2010 DB form the basis of the 2010 Adopted
Budget which is expected to be agreed in mid-December 2009, after
consideration by the European Parliament in October 2009, further
consideration by the Council in November 2009 and negotiations
between the Council and the European Parliament. We reported on
the outcome of the European Parliament's first consideration of
the DB on 11 November 2009.[65]
The Minister's letter
18.2 The Economic Secretary to the Treasury (Ian Pearson) writes
now to tell us about an unexpected development in relation to
the DB. He tells us that on 13 November 2009 the Council Secretariat
proposed a letter of amendment to the Commission's PDB for 2010,
covering additional resources for changes to the functioning of
the European Council and the Council in 2010, following the entry
into force of the Lisbon Treaty.
18.3 The Minister says that these costs primarily
relate to:
- establishing the European Council
as an institution;
- those incurred in holding the regular European
Council meetings and third country summits at Head of Government
level;
- creation of an office of the new President of
the European Council, of a comparable size to that of the President
of the European Commission; and
- an increase in the Council's resources to support
the higher number of co-decided dossiers under the Lisbon Treaty.
18.4 The Minister continues that the total amount
of funds requested under Heading 5 (Administration) of the budget
is €25 million (£22 million) in both commitment and
payment appropriations and that the breakdown is:
- €2.4 million (£2.1
million) to cover building-related costs for organisation of European
Council events;
- €2.6 million (£2.3 million) to cover
IT, other equipment and transport expenses, including for organisation
of European Council events;
- €6.9 million (£6.2 million) to fund
other operating expenditure connected with organising European
Council events;
- €1.5 million (£1.3 million) for the
salary, entitlements, representation and travel costs of the President
of the European Council;
- €5.8 million (£5.2 million) for additional
staff for the Council Secretariat, comprising 22 new posts for
the office of the President of the European Council, ten new posts
for additional security agents for protection of the President
and 28 new posts to strengthen other departments;
- €0.8 million (£0.7 million) to cover
expenditure on missions by those working directly with the President
of the European Council, media coverage of events and medical
expenses; and
- €5 million (£4.5 million) as a contingency
reserve to fund activities, the demand for which may arise in-year
as the European Council is set up and shaped as an institution.
The Minister comments that:
- in presenting this proposal
the Council Secretariat said it intended to present it for formal
decision by Ministers at the Budget Council on 18 November 2009;
- Member States had not been given any prior warning
of this intention, or indeed of the proposal's publication date
or form; and
- the Government has repeatedly and strongly objected
to this method of procedure, in the Council's budget committee
on 13 November 2009 and bilaterally with other Member States,
the Presidency and the Council Secretariat.
18.5 The Minister comments further that:
- the Government "of course"
fully supports the establishment of the European Council as an
institution and the creation of the post of President of the European
Council;
- it believes firmly that the President should
have the necessary support in order to allow the holder to be
effective in bringing greater coherence and consistency to the
Community's actions and to drive forward real progress on the
collective issues faced;
- it believes, however, that proposals for funding
these changes should be presented in sufficient time to allow
adequate consideration by the Budgetary Authority (the Council
and the European Parliament); and
- it has also made very clear that such proposals
must be brought forward on a timing that allows Member State governments
an adequate period for consideration by national parliaments.
18.6 The Minister tells us that:
- following pressure from the
Government and other Member States in Council, it now seems possible
that the proposal may be considered according to an alternative
procedure providing for further consideration of it until the
end of November 2009;
- he is sorry not to be able to give us a more
certain picture of this and assures us that the Government is
pushing for full clarity on the process as soon as possible; and
- if, in the meantime, the issue were to be discussed
at the Council of 18 November 2009, the Government would reiterate
the need for a period of proper consideration of the proposal
by Member States, including with national parliaments.
18.7 Finally, the Minister says:
"I fully appreciate that the Committee will
be concerned by the procedural developments I have described.
I can reassure you that we will continue to do all we can to ensure
an opportunity for detailed reflection on this and any future
such proposals."
Conclusion
18.8 We are grateful to the Minister for his prompt
report on this matter. We are naturally greatly disturbed by the
lateness of the presentation of this proposal and the haste with
which it is being pursued by the Presidency. It does not augur
well for an intention to honour the spirit of the Lisbon Treaty
in relation to the role of national parliaments. However, we commend
the Government's protests on this matter, but suggest that postponement
of a final decision on the details of this budgetary amendment
only until the end of November 2009 hardly allows for proper national
parliamentary scrutiny.
62 (30692): See HC 19-xx (2008-09) chapter 2 (17 June
2009). Back
63
Gen Co Deb, European Committee, 6 July 2009, cols. 3-38. Back
64
See headnote. Back
65
Ibid. Back
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