FOREWORD—What this
report is about
This report informs the House about the Commission's proposals
for the 2009 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.
This is the third budget to be drawn up under the current Financial
Perspective, the agreement which sets spending ceilings over a
seven year period. The multi-annual framework is well established
and consequently this is an unexceptional budget. However, we
share the Government's concerns that appropriations should be
set at a level that matches amounts that can be realistically
spent under each budget Heading. We also note that the margin—the
difference between proposed spending levels and the maximum permitted
under the Financial Perspective—may not be large enough
to cover unforeseen expenditure under Headings 3 (Citizenship,
Freedom, Security and Justice) and 4 (The EU as a Global Partner).
While looking specifically at the 2009 Preliminary Draft Budget,
we have also briefly considered the review of the budget which
the Commission has commenced, ahead of the negotiations on the
next Financial Perspective. The public consultation period has
just finished, and we look forward to the publication of detailed
proposals by the Commission. The Committee's response to the consultation,
submitted earlier this year, is printed at Appendix 2.
We also note that the budget does not demonstrate clearly the
amounts that it is proposed be spent on items that cut across
the budget headings, and we support the Government's suggestion
that more could be done to highlight funding on topics that are
distributed across the budget.
| 
