Most EU Members Said to Be Ready to End Budget Negotiations by June

Brussels, 31 January

Most EU member states have voiced their readiness to conclude the negotiations of the the Community's financial arrangements between 2007 and 2013 as planned by June, a Slovenian official said on the sidelines of EU foreign ministers meeting in Brussels on Monday.

State Secretary for European Affairs Marcel Koprol added, however, that nothing was certain. "We still face a lot of work for this to happen, to agree on a policy that would suit all members".
Koprol, who also heads the Government Office for European Affairs, said there was also a general agreement over what goals the cohesion policy should have in the next period. But positions on individual issues differ considerably, he admitted.
One of such is the question of assistance to the regions that will be hit by the statistical effect of the enlargement. Such regions will not be eligible for the richest part of structural assistance because their GDP per capita exceeds 75 percent of the Community average as a result of the enlargement.
Slovenia is in favour of the European Commission's proposal of the new financial perspective and the plans to wrap up the negotiations on this issue by June, but the consensus of all members is needed to achieve this.
The country has a vital interest in a timely conclusion of the negotiations; if an agreement is reached by June, Slovenia will continue to be eligible for EU funds under Objective 1 in the next seven-year period.
During this time, eligibility for the funds will be calculated on the basis of data for the 2000-2002 period, when Slovenia's GDP per capita stood at 74.45%, and was just below 75%.
If the negotiations concluded later, for example in early 2006, Slovenia would probably exceed 75% of the EU 25 average as its GDP per capita was slightly above the eligibility level in the 2001-2003 period.
The country would thus only get funds earmarked for the countries affected by the statistical effect, yet these have not been agreed upon yet. As a result, Slovenia could turn from a net receiver into a net contributor to the EU budget.

Most EU Members Said to Be Ready to End Budget Negotiations by June

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