Europe's Leaders reach budget deal but must show more vision

12.00.00am GMT Sat 17th Dec 2005

Graham Watson MEP (UK), leader of the European Parliament's Liberal and Democrat Group recognised the efforts made last night at the EU summit in reaching a budget agreement but sounded a note of caution.

"Parliament had proposed an amount of €975bn (1.18% GNI) in June as its carefully considered estimate of what the Union needed to finance its policies over the next seven year period. The European Council have now reached consensus on a figure of 1.045% GNI, corresponding to €862bn. This is still somewhat short what of Parliament considers necessary."

"It is to some degree an achievement that Member States managed to agree an outline deal including a permanent change to the rebate, review of all expenditure, including CAP in 2009 and additional solidarity funding for the new Member States. However they must recognise that Parliament is the other arm of the EU budgetary authority and as such has to agree to the package. I hope that the two sides will now seek and find a mutually acceptable agreement for both institutions under the Austrian Presidency that will enable funding to come on line in time for January 2007."

"The 1% straight-jacket imposed by the gang of six national leaders almost two years ago to the day, was never a realistic figure for a Union that has just expanded to10 more States. These same EU leaders have set important and challenging economic and political goals for the Union. They need to be consistent in their decisions and guarantee the availability of the resources to fund them."

"This whole episode has demonstrated the difficulty of reaching agreement on long-term budgetary matters with 25 sets of national interests. In future we should be looking to revise the way we finance the EU. Our Leaders need to think less like accountants fighting over figures and more like members of the Board of Directors."