MEPs demanded €1.5 billion in fresh money to finance the economic recovery plan and €300 million for a new dairy fund in a vote on Thursday. In general, they restored the Commission's preliminary draft budget after the Council's cuts.

MEPs voted through a pack of amendments to the draft budget for 2010. The amended draft budget was adopted with 528 votes in favour, 68 against and 39 abstentions. The insitutions' adminstrative budgets was adopted by a show of hands.

This Parliament's first reading of the budget, will constitute Parliament's basis for the coming negotiations with the Council. The final budget will be adopted at the December plenary.

Support to the dairy sector

A €300 million dairy fund to tackle the milk crisis is one of Parliament's key demands in the budget 2010 negotiations, backed by a very large majority in a vote on 17 September.  The Budget Committee suggested that the fund be set up with €300 million.  Earlier this week, the Commission supported the idea, but proposed €280 million.

The idea of the fund is to help restructure the dairy sector, in connection with the Commission's phasing out of milk quotas. The fund would include measures such as supporting less-favoured areas, promoting sales and finding alternative sources of income.The fund was backed with 528 votes in favour, 89 against and 20 abstentions.

The 2010 budget also includes other milk price crisis measures, amounting to about €600 million. These are broadly supported by the three institutions, although precise figures have yet to be agreed. In a separate vote today, MEPs also backed two legislative measures to help farmers through the crisis.

€1.5 billion more for the recovery plan

To tackle the economic crisis, MEPs asked for a fresh €1.5 billion in payments/€1.98 billion in commitments - rather than taking money from other budget lines - to fund the energy parts of the economic recovery plan.

The two main parts of the economic recovery plan are energy infrastructure projects (gas and electricity infrastructure, offshore wind energy and carbon capture and storage) andrural development (internet infrastructure). Parliament and Council have already agreed on the size (€5 billion) of the recovery plan and the financing of this year's €2.6 billion.

What remains to be decided is the funding of next year's €2.4 billion. While MEPs think that parts of this - the rural development part - could be financed by shifting funds from other budget posts, they find it necessary to add fresh €1.5 billion to finance the energy part.