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BRUSSELS 22-23 Nov 2012 Special EU summit focus on budget

European Union leaders meet for an extraordinary summit to focus entirely on the Multiannual Financial Framework (MFF), the 2014-2020 budget.

November 22, 2012 - NULL

BRUSSELS 22-23 Nov 2012 Special EU summit focus on budget

European Union leaders meet for an extraordinary summit to focus entirely on the Multiannual Financial Framework (MFF), the 2014-2020 budget. They agree that the long-term budget must contribute to growth, investment and jobs, but disagree on the details. Several members want it to be bigger. Britain and Germany are among the members that vow to oppose it if they see an increase. And non-euro zone countries don't want a link between MFF and a currency union budget. The European Parliament is co-legislator on budgetary matters, so it

BRUSSELS 22-23 Nov 2012 Special EU summit focus on budget

European Union leaders meet for an extraordinary summit to focus entirely on the Multiannual Financial Framework (MFF), the 2014-2020 budget. They agree that the long-term budget must contribute to growth, investment and jobs, but disagree on the details. Several members want it to be bigger. Britain and Germany are among the members that vow to oppose it if they see an increase. And non-euro zone countries don't want a link between MFF and a currency union budget. The European Parliament is co-legislator on budgetary matters, so it also has to approve the MFF, and the deadline is the December EU summit.

A paper by the Cyprus EU presidency in August acknowledges the obstacles to agreement, noting that "contradictory views were expressed as to the best way to ensure the above-mentioned objectives and on many key issues. . . This applies in particular to the overall level of the MFF for 2014-2020."

The EU paper notes that views largely converge on the "need to ensure a true quality of spending, the simplification of instruments and a sufficient degree of flexibility in a number of areas." British Prime Minister David Cameron threatens to block MFF talks if Britain's interests are not addressed and if a deal that "does not have proper control" was put forward.

Germany also wants the release of EU funds tied to a country's conformity with the requirements on economic governance, as well as with an effective fight against corruption, tax evasion and money laundering.

Euractiv reports that French President François Hollande has sought to reassure Britain and other non-eurozone countries that plans to establish a special budget for the currency bloc will only come "in addition" to the EU budget and not "in substitution" of it. (WRITTEN OCT 2012)

RELATED READING:

Multiannual Financial Framework 2014-2020 (EU-Cyprus paper 30 Aug 2012)
http://www.cy2012.eu/index.php/en/file/t4OXQzwQKPz2nxXo9+AUZw==

Special November summit to focus on long-term EU budget (Euractiv 3 Sep 2012)
http://www.euractiv.com/specialreport-budget/november-summit-focus-long-term-news-514540

Hollande: Eurozone budget will come 'in addition, not in substitution' of EU budget (Euractiv 19 Oct 2012)
http://www.euractiv.com/priorities/hollande-euro-zone-budget-come-a-news-515532

Would veto EU budget if not "acceptable" - Cameron (Reuters 19 Oct 2012)
http://uk.reuters.com/article/2012/10/19/uk-eu-summit-cameron-idUKBRE89I0KO20121019

Keywords: Multiannual Financial Framework, MFF, European Union summit, EU summit, November 2012, EU Extraordinary summit, EU special summit, EU special MFF summit, 2014-2020 EU budget, euro zone, corruption, tax evasion, money laundering

Date written/update: 2012-11-22