2011 budget will focus on youth and economic recovery

Without enough money, the EU 2020 strategy risks turning into "another vague scoreboard for the Member States", the EP Budgets Committee warned on Thursday when adopting its priorities for the 2011 budget. According to the committee, next year's budget should focus on youth, research and recovery from the economic crisis.

While welcoming EU's new 2020 strategy, presented by the Commission on Wednesday, MEPs said that it needs more substance, especially in the field of climate change, environment and social policies. MEPs are also determined not to "duplicate the frustrating experience of the Lisbon Strategy".

Members of the Budgets Committee agreed that young people should top the EU's mid- and long-term priorities, since youth "is at the heart of social and inclusive strategies" and "its innovation ability is a key resource for development and growth in the EU".

To fight the economic crisis, the EU should support education, vocational training and research as well as innovative and in particular green technologies. In addition, the Member States should consider revising their operational programmes. However, the financing of these priorities, should not, said MEPs, jeopardize "fundamental EU policies such as the cohesion, structural or common agriculture policies".

The priorities for next year's EU budget adopted by the Budgets Committee, if endorsed subsequently by the full Parliament, can be expected to influence the Commission's compilation of the draft budget - the first formal step in the annual budgetary procedure - which is to be presented on 28 April this year.

The budgetary limits for 2011

The 2011 budget is the first to be negotiated under the Lisbon Treaty, which means that Parliament now has a full say over the whole budget. Nevertheless, the 2011 budget still has to stay within the limits of the EU's "financial perspective" or long-term budgetary framework. The financial perspective lays down the following limits:

  • Competitiveness for growth and employment: €13.0 billion
  • Cohesion for growth and employment: €50.7 billion
  • Conservation and management of natural resources (including market expenditure and direct payments): €60.3 billion
  • Freedom, security and justice: €1.21 billion
  • Citizenship: €0.683 billion
  • EU as a world player: €8.43 billion                 
  • Administration: €8.33 billion
  • Total: €142.6 billion (1.13% of GNI)