The European Parliament and the Council started negotiations over EU's annual budget on 27 October. Under the new budget procedure, Parliament and Member States have three weeks to reach an agreement. Failure to do so could mean that the EU will have to work with the same budget in 2011 as in 2010, on a month-by-month basis.

The differences between the Council position, on the one side, and the Commission and Parliament position about 2011 EU budget, on the other, are relatively small. Comparing commitment levels, Council wants an increase of 0.2%, the Commission suggested an increase of 0.8%, and the Parliament opts for an increase of 1.1%. The difference between Council and Parliament in absolute figures is 1.29 billion Euro.

For the Parliament, cutting payments now, while commitments remain the same, would simply mean having to pay the bills later. The European Commission is the institution which is best placed to ascertain the level of expenditure necessary for 2011, on the basis of the progress made in the execution of all relevant contracts, projects, etc. Therefore, Parliament is basically restoring the budget as it was proposed by the Commission.

EP President Jerzy Buzek will lead Parliament’s delegation at the first meeting with the Council delegation, led by Belgian Prime Minister Yves Leterme. Parliament's delegation includes Budgets Committee Chair, Alain Lamassoure, Commission expenditure rapporteur Sidonia Jedrzejewska and administrative expenditure rapporteur Helga Trüpel.

On the Parliament's side, Mr Lamassoure, highlighted that the Chamber expects the Council to be open to discussion, not only on the 2011 budget, but also on the medium-term financing of the EU. In his view Member States cannot ask the EU to do more, while paying less and leaving the revenue system unchanged. A genuine discussion is required, also about a new system of resources.

Parliament is defending a moderate approach, by proposing less increase than inflation, as a way to to reach a realistic outcome.

Provisional timetable for 2011 Budget adoption

27 October: start of conciliation + trilogue
4 November: trilogue
8 November: trilogue
11 November: final conciliation committee meeting