THE EUROPEAN PARLIAMENT APPROVED THE EU'S MULTIBILLION EURO BUDGET FOR 2007-2013 ON WEDNESDAY, ENDING MONTHS OF WRANGLING WITH GOVERNMENTS AND AVERTING A FUNDING CRISIS, REPORTED AP. THE ASSEMBLY VOTED BY A LARGE MAJORITY IN FAVOR OF THE ¤864.4 BILLION (US$1.108 TRILLION) PACKAGE, MEANING MEMBER GOVERNMENTS CAN START ALLOCATING MONEY TO EU-FUNDED PROJECTS FOR THE SEVEN-YEAR PERIOD. MEMBER STATES AGREED LAST MONTH TO ADD AN EXTRA ¤2 BILLION (US$2.4 BILLION) TO THE ¤862.4 BILLION (US$1.04 TRILLION) BUDGET DRAFTED IN DECEMBER, AFTER EU LAWMAKERS WITHDREW DEMANDS FOR A ¤12 BILLION (US$14.5 BILLION) INCREASE. EUROPEAN PARLIAMENT PRESIDENT JOSEP BORRELL SAID THE WRANGLING RESULTED IN A BUDGET THAT WAS FAR FROM IDEAL. «THIS LED TO AN AGREEMENT WHICH FOR MANY MEMBERS IS UNSATISFACTORY,» BORRELL TOLD THE ASSEMBLY AFTER THE VOTE. «IT'S A BARE MINIMUM, AND IT DOES AT LEAST ALLOW THE EU TO CONTINUE FUNCTIONING.» HE SAID THE NEW SPENDING PLANS MEANT IT WOULD COST EU CITIZENS JUST 26 EURO CENTS PER DAY TO RUN THE EU. WITH THE NEW BUDGET IN PLACE, «WE WILL NOW BE ABLE TO PROPERLY FINANCE THE ABSORPTION OF NEW MEMBER STATES,» SAID AUSTRIAN CHANCELLOR WOLFGANG SCHUESSEL, WHOSE COUNTRY HOLDS THE EU PRESIDENCY. «WE CAN NOW SPEND MONEY ON PRACTICAL PROBLEMS THAT WOULD WIN BACK THE TRUST OF THE PUBLIC.» THE EU ASSEMBLY, WHICH CAN VETO THE BUDGET BUT IS NOT DIRECTLY INVOLVED IN STRUCTURING IT, HAD BEEN WITHHOLDING ITS APPROVAL FOR THE PACKAGE, DEMANDING A SUBSTANTIAL INCREASE IN FUNDING FOR AREAS SUCH AS EDUCATION, RESEARCH AND ENERGY, TRANSPORT AND TELECOMMUNICATIONS NETWORKS. AS PART OF THE DEAL REACHED WITH THE EU GOVERNMENTS LAST MONTH, THE EU WILL ALSO RAISE ITS EMERGENCY RESERVE, INCLUDING FUNDS FOR FLOODS AND OTHER EMERGENCY SITUATIONS, BY ¤1.5 BILLION (US$1.8 BILLION), AND ADD ¤500 MILLION (US$611 MILLION) FOR PENSIONS OF EU CIVIL SERVANTS AND OTHER ADMINISTRATIVE MATTERS. EU LEADERS ALSO AGREED TO REVIEW THE BUDGET IN 2008 OR 2009, WHICH COULD LEAD TO CUTS IN THE EU AGRICULTURAL SUBSIDIES _ RELEASING MONEY FOR OTHER AREAS TO BOOST COMPETITIVENESS. IF THE PARLIAMENT HAD FAILED TO APPROVE THE LONG-TERM FINANCIAL PACKAGE, THE EU WOULD HAVE TO OPERATE ON THE BASIS OF ANNUAL BUDGETS, MEANING REGULAR QUARRELS BETWEEN GOVERNMENTS AND LESS MONEY FOR THE 10 MEMBERS THAT JOINED IN 2004 SINCE THE LARGER PACKAGE EARMARKED INCREASED AID FOR THEM. THE BUDGET WAS THE SUBJECT OF MORE THAN A YEAR OF BITTER FIGHTS BETWEEN EU GOVERNMENTS, WITH BRITAIN CLASHING WITH ITS PARTNERS, NOTABLY FRANCE, OVER FARM SPENDING THAT STILL EATS UP AT LEAST 40 PERCENT OF THE EU'S ANNUAL BUDGET DESPITE SEVERAL REFORMS IN THE PAST TWO DECADES.
