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The following article was published in our article directory on November 1, 2010.
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EU summit Heated Debate Budget Program

Article Category: Business

Author Name: xia zihui

At the recent EU summit began, the participating leaders of the war of words, the European Union next year's budget issues surrounding the intense debate. In the euro zone sovereign debt crisis, the EU governments are financially stretched. In this the EU summit, the leaders of the EU member states, "money" issue has become "preoccupied."

Under EU regulations, the European Commission responsible for drafting the EU budget for next year, after consultation with the European Parliament and EU Member States to finalize the agreement. From the European Parliament and representatives of EU Member States started negotiations on the 2011 budget, will be in serious differences on the specific amount.

European Parliament and the European Commission advocated that the EU next year's budget should be based on an increase of 5.9% this year, increased to 142.6 billion euros. European Parliament Jerzy Jerzy Buzek attended the EU summit, explained that although the EU member states are due to relatively tight fiscal debt crisis, but the EU needs in scientific research, energy, environmental protection and education, increase spending, which have contributed to to help EU countries out of the current economic difficulties.

However, such a substantial increase in the number of members of the EU budget seems to be tantamount to "Lion's Mouth." British Prime Minister David Cameron attacked the same day they arrive at the venue for a European Parliament and the European Commission's claim "totally unacceptable."

Although the EU budget each year to go through some bargaining to reach, but this year is full of budget negotiations at the outset of "gunpowder", which is obviously the current debt crisis has a lot.

Cameron said that when the EU member states have fiscal austerity, governments are reducing their budget, when EU institutions are required to increase the budget substantially, which is completely wrong.

High deficit last week the British government announced a huge budget, "weight-loss" program, the next few years would cut 83 billion pounds Public expenditure, known as "the largest since the end of World War II savings on expenditure plans. " According to the plan, the British domestic and foreign funding for the various departments were slashed. In this case, how can the British Government is willing to pay more for the EU?

Cameron at the summit to the other EU leaders distributed a letter of appeal against the European Parliament and the European Commission's position. Diplomatic sources, including Cameron, including at least 11 leaders of EU member states signed his name on the letter to show support, including German Chancellor Angela Merkel and French President Nicolas Sarkozy. The large EU countries is also a major source of the EU budget, EU budget will be needed to increase more than their pocket.

According to the 11 member states to reach a unified "front", the European Union next year's budget increase of a maximum of 2.91%, which the European Parliament and the European Commission's "offer" has a considerable distance.

Of course, not all EU member states are opposed to a substantial increase in the EU budget. For example, the Polish president not to sign the appeal letter, as in Poland, including some new members in Eastern Europe, the EU budget each year can be obtained from the large development assistance, increasing the EU budget for them is not necessarily a bad thing.

From this, a debt crisis by the "light" of the EU budget "war" is inevitable.

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