FOREWORD—What this
report is about
This report informs the House about the Commission's
proposals for the 2008 General Budget of the European Communities.
The report summarises the significant proposed changes to funding
under each of the budget headings. We have been aided in this
by oral evidence from the Economic Secretary to HM Treasury (Kitty
Ussher MP) and a written Explanatory Memorandum from HM Treasury.
We consider the following to be important principles
for budgetary examination:
- Negotiations on European expenditure
must emphasise budget discipline;
- All European expenditure must demonstrate efficiency,
effectiveness and value for money;
- Expenditure proposals should be based on a realistic
assessment of what can be implemented properly and effectively;
and
- Increases proposed for administration must be
scrutinised to ensure they are based on genuine need and reflect
economies of scale.
As a further general principle we consider that the
Council should be more aware of the budgetary and administrative
effects of the commitments it makes and that it should be prepared
to accept the payment implications of these in budgetary negotiations.
While looking specifically at the 2008 Preliminary
Draft Budget, we have also looked forward to the review of the
budget which the Commission will undertake in 2008/9. We have
also closely examined the funding mechanisms for the Galileo global
satellite navigation system and the European Institute of Technology,
as there appears to be a lack of clarity about how these items
will be funded. We note the Government's commitment not to reopen
the financial perspective ceilings to fund these programmes. We
share the Government's concerns regarding the controls that are
in place to monitor spending and administration within the EU's
agencies.
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