The European Parliament plenary session, meeting in Strasbourg, fixed its position towards the budget of the European Union for year 2011. Although, MEPs position takes into account the austerity policies and measures put in place by many member states, the Chamber called for more EU investment in research, innovation, education and energy, as well as pledged to provide sufficient funding for the new tasks and priorities stemming from the Lisbon Treaty.

The draft 2011 budget presented by the Commission in April foresees 142.56 billion Euros or 1.13% of EU GNI in commitments and 130.13 billion or 1,06% of EU GNI in actual payments. This translates in an increase of 2.2% for the commitments on 2010 and 5,9% for the payments. (The 2007-2013 Long term framework had set commitments at 142.97 billion euros and payments at 134.3 billion).

For 2011, Parliament proposes an increase in commitments of 0.8% as compared to the 2010 budget. The Chamber understands the pressures on Member States' budgets and has  therefore broken with their tradition of suggesting a notably larger budget than the Commission has proposed. MEPs agreed on a total of 130,56 billion Euro in payments and 143,07 billion Euro in commitments.

Although in this moment most of the European countries are applying heavy austerity plans guiding their budgetary policies, the European Parliament underlined that arbitrary reductions in payment appropriations as well as in commitment appropriations jeopardize the implementation of Union policies and programmes already agreed. This is the reason why MEPs do not support the cuts proposed by the Council.

Mayor Parliament increases and cuts per heading

• Competitiveness for growth and employment - MEPs asked for more money for the Lifelong Learning Programme (+€18 million), the Entrepreneurship and Innovation Programme (+€10 million) and Intelligent Energy — Europe programme (+€10 million). To compensate for these increases, MEPs cut the fusion energy research project "ITER" by €47 million.
• Cohesion for growth and employment - MEPs added a new line, worth €2.5 million, for the Baltic Sea strategy
• Preservation and management of natural resources - +€300 million for a dairy fund, +€6.7 million for the environment programme Life+ and +€2 million  to support for the management of fishery resources
• Freedom security and justice - +€2.35 million to the Daphne programme for the fight against violence against women and children and +€1 million for prevention of terrorism
• Citizenship - +€4 million to support the World Special Olympics in Athens (15 05 06) and +€3 million to the Youth in Action programme
• The EU as a global partner - +€100 million to Palestine, the peace process and UNRWA, compensated by cuts in the Banana accompanying measures (-€18 million),  in the Cooperation activities other than Official Development Assistance (-€23.5 million) and in the Common Foreign and Security Policy (CFSP -€45.7 million)
• Administration - MEPs add money in a reserve, to be paid to employees at the EU institutions in case the Council loses the Court case against the Commission.

Parliament also wants to start talks with the Council about new sources of income for the EU. MEPs therefore asked the Council to open the negotiations on new own resources, adding that this element is a full part of the overall agreement on the 2011 budget.

On 27 October, Parliament and the Council start a conciliation period of 21 days to agree on a joint text. If they can agree, the final budget will be approved in mid-November.