MEPs set their conditions

An ugly showdown between the European Parliament and the EU’s 27 national governments over the 3 per cent cut in the 2014-2020 European budget may not transpire after secret documents emerged showing MEPs may agreed the deal in exchange for greater financial flexibility, writes the EUobserver. The Parliament’s four main political groups slammed the hard-fought proposal, agreed in February and which would see the budget fall from €977bn to €960bn, but amid the ongoing economic slowdown and continued austerity, “attitudes are softening”.

According to a draft resolution seen by the European news website, on March 13 MEPs will propose supporting the draft budget in exchange for concessions.

Parliament wants a review clause to do a full evaluation of the budget following next year's European elections. It also wants agreement to be reached on the future of the EU's "own resources," which includes revenue from VAT and, in the future, from a financial transactions tax. Meanwhile, a flexibility mechanism would allow funds to be transferred between years and the different budget headings.

The Parliament also wants the European Commission to provide emergency budgets to cover a funding gap of up to €3bn carried over from the 2012 budget. Negotiations with member states will begin in April.