Potocnik Believes EU Budget Could Still Be Adopted in 2005

Ljubljana, 4 November

The possibility that the EU budget framework for 2007-2013 is adopted in December has increased, European Science and Research Commissioner Janez Potocnik told the press in Ljubljana on Friday.

According to Potocnik, all member states are well aware of the fact that additional delays in adopting the 2007-2013 financial perspectives could cause problems for the EU.
Moreover, he expects that the UK will prepare more concrete proposals in the next few weeks that will build on the failed Luxembourg compromise.
Potocnik believes that EU member states should first and foremost define the purpose of the budget framework, as it should be used to satisfy the key needs of the entire EU. According to him, it is currently used only as a mechanism for reallocating money.
This in turn means that larger members strive for a reduction in expenditures, while smaller members call for more investments, he said.
"Such a state could prevail in the long-term, as the EU will continue its expansion...therefore we should restructure the budget so as to focus on key areas areas for Europe's future development," he said.
Potocnik thinks that two questions that should be answered as soon as possible are whether "the Common Agricultural Policy (CAP) presents a suitable response to problems faced by developing countries" and "if the current system, where the CAP is financed exclusively throughout the Brussels budget is the way to go."
As CAP spending accounts for nearly half of all budgetary expenditures, the Commission wants to reduce this share and channel the money towards the Lisbon Strategy activities, Potocnik explained.
This is why he did not support the Luxembourg compromise proposal, as it did not allocate sufficient funds for structural policy, he added.
Potocnik now hopes that member states will be more inclined to face challenges of a globalised world and agree on a budget that would put more emphasis on competitiveness and knowledge in Europe.
"After the latest informal meeting of EU heads of state in Hampton Court, the issue of science and research started to play the central role", Potocnik told the press.
Many EU members will however need to put a lot of effort into achieving the goal, agreed in 2002, under which the countries should allocate 3% of their GDP for research, he warned.

Potocnik Believes EU Budget Could Still Be Adopted in 2005

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