The Council adopted its position on the 2013 EU draft budget

Ministers at the General Affairs Council reached an agreement on the Council's position on the EU 2013 EU draft budget. However, the Dutch, Swedish and UK delegations voted against and the Austrian delegation abstained. The decision limits the increase in payments to 2.79% compared to 2012.

The Council adopted its position on the 2013 EU draft budget which, compared to 2012 it provides for an increase of €3.61 billion in payments and €1.88 billion in commitments. Compared to the amounts proposed by the Commission, the Council calls for reducing the payments by a total of €5.23 billion and the commitments by €1.15 billion. According to Ministers, this position reconciles the necessity to avoid undue burden on national public finances in times of fiscal consolidation with the need for growth enhancing measures. It also takes due account of the fact that 2013 is the last year of the current multiannual financial framework (MFF). Recently, MEPs highlighted the contradictions between the agreement among EU Heads of state and the severe cuts proposed by Member States' civil servants for next year's budget.

The most important payments' increase (+6.71%) is dedicated to sustainable growth, which is in line with the Europe 2020 strategy for smart, sustainable and inclusive growth. Ministers stressed that particular emphasis is given to cohesion where the payments would increase by 8.07%, also in order to avoid similar shortfalls as last year. Freedom, security and justice, which includes the cooperation in the fields of external borders and migration constitutes another priority of the Council (+5%). The payments advocated by the Council under the other headings and sub-headings either increase clearly below the inflation forecast or decrease compared to their 2012 level.

The Council's position on the draft budget for 2013 amounts to €132.70 billion in payments in absolute figures, corresponding to 0.99% of the EU's Gross National Income (GNI), and €149.78 billion in commitments, leaving a margin of €3.58 billion under the overall ceiling of the current MFF. The Council's position will serve as a mandate to the Cyprus presidency to negotiate next year's EU budget with the European Parliament, which is expected to adopt its amendments to the Council's position at the end of October.