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Agencies in limbo as EP refuses to budge

Wednesday 24 November 2010 - by Will Henley

Agencies in limbo as EP refuses to budge

Three new EU financial supervisory authorities remain in doubt after parliamentarians in Strasbourg last night refused to shift from their position on the 2011 Union budget.

In a plenary session on Tuesday, MEPs declared that they remain in a "firm, united position" on the proposed budget following the collapse of talks with the European Council last week.

"Parliament is being tested," said Martin Schulz of the Progressive Alliance of Socialists and Democrats group. "The discussion is not about money anymore but about the direction in which the EU is developing. It is about the rights of Parliament.

"We are elected to deal with the EU and its budget. Now the national governments want control and to monitor us. That is the wrong way around!"

European Parliament president Jerzy Buzek maintained that MEPs would accept a compromise rise of 2.91 per cent put forward by member states instead of a requested 6.19 per cent. But he said the price would be greater powers including consent to the EU's multi-annual financial framework under the Lisbon Treaty.


"In exchange we wanted agreement on the question of flexibility in the budget and on how the Lisbon Treaty should be implemented with a view to future talks on the MFF and own resources", Buzek said.

The deadlock raises serious question marks over the future financing of the European Banking Authority, European Securities and Markets Authority and European Insurance and Occupational Pensions Authority.

With the authorities scheduled to begin work on 1 January 2010, the European Commission admitted to GFS News last week that the budget impasse could have a potential impact on recruitment, travel and running costs.

Forty per cent of the planned €40m total financing for the agencies is set to come from Union funds, with 60 per cent derived from member state contributions.

But with the European Council and Parliament failing to agree a new budget, the EU will be forced to operate under the 2010 budget, which had committed no new funds to these authorities.


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