5th REPORT: THE 2006 EC BUDGET
Letter from Ed Balls MP, Economic Secretary,
HM Treasury to the Chairman
I am grateful for the Committee's overall endorsement
of the Government's priorities for the 2006 EC Budget negotiations.
The Government continuously sought, and will continue to seek,
to ensure that all proposed EU spending is assessed for the value
that it adds and that total expenditure levels remain below Financial
Perspective ceiling levels. I also welcome the Committee's support
for the Government's ongoing efforts to secure the reform of the
CAP. It should be noted, however, that while the government will
always strive in Annual Budget negotiations to ensure that appropriation
figures for agriculture remain realistic relative to recorded
implementation rates, these negotiations do not provide the appropriate
forum to discuss more fundamental reform of the CAP. This area
of spending will be considered in the 2008-09 Budget Review.
I note that the Committee had concerns over
the discussions we have had on the current Financial Perspective
2007-13. As you are aware, since this report was written, these
negotiations have been successfully concluded. I believe the Inter-Institutional
Agreement that was agreed in December 2005, was a positive outcome
for the UK and the European Union. As far as the outcome of the
2006 Annual Budget negotiations is concerned, I would refer you
to the update provided to your committee by my predecessor in
January 2006.[2]
This provides the details of the 2006 EC Budget which was finally
adopted and assesses the degree to which the Government was successful
in achieving its objectives.
16 March 2007
2 Correspondence with Ministers, 40th Report of Session
2006-07, HL Paper187. EC Budget 2006. Letter from Ivan Lewis MP,
Economic Secretary, HM Treasury to the Chairman, 10 January 2006. Back
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