CHAPTER 1: INTRODUCTION
The 2009 EC Budget
1. This is the fifth consecutive year that we
have scrutinised the EC Budget on the basis of oral evidence from
the Government before the First Reading of the Preliminary Budget
in the Council. The Committee decided in the last Parliament that
taking evidence from the Government at such an early stage in
the budgetary process was the most effective way in which we could
fulfil our parliamentary obligation to scrutinise proposed EU
legislation and ensure greater accountability and transparency.[1]
2. This year we received an Explanatory Memorandum
on the Provisional Draft Budget from HM Treasury dated 2 June;
on the basis of this document we took oral evidence from the Economic
Secretary to the Treasury, Kitty Ussher MP, on 11 June. Both
the Explanatory Memorandum and the transcript of oral evidence
are printed with this report.
3. Although for the most part the annual EC Budget
is determined by policies previously agreed as part of the Financial
Perspective, scrutiny of the annual EC Budget remains an important
means of making the process more transparent. The aim of the Committee's
reports on the EC Budget is to inform the House of issues relating
to the Budget and to scrutinise the Government's position before
the Commission's Preliminary Draft Budget is considered at the
Budget Council which takes place this year on 17 July. Scrutiny
of the Government's position is particularly important given that
the UK is a net contributor to the EC budget, and we appreciate
the Government's effort to assist us in our scrutiny.
4. This report is the European Union Select Committee's
main contribution to the scrutiny of the EC Budget. However, as
part of our regular scrutiny role, we will continue to consider
the Budget until it is adopted. We will also consider any Preliminary
Draft Amending Budget presented by the Commission.
5. Appendix 3 contains a brief guide to the annual
European budget procedure and there is a glossary at Appendix
4. We make this report to the House for information.
1 European Union Committee, 1st Report (2002-03): Review
of Scrutiny of European Legislation (HL 15). Back
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