2010 EU Budget: Fresh Money for Energy Recovery, Milk Farmers

The amended draft budget was adopted with 528 votes in favour, 68 against and 39 abstentions. Photo by Sofia Photo Agency

MEPs demanded EUR 1,5 B in fresh money to finance the economic recovery plan and EUR 300 M for a new dairy fund in a vote on Thursday in Starsbourg.

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.

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

EUR 1,5 B More for the Recovery Plan

"Because of the crisis, the Council wants the lowest possible budget. But we in the Parliament, we believe that the Parliament has many instruments that should be used in an even better, more effective and more powerful way precisely, to ensure that the crisis can be overcome" said budget rapporteur László Surján, in a debate with the European Council and European Commission on Tuesday.

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) and rural development (internet infrastructure). The European Parliament and Council have already agreed on the size of the recovery plan and the financing of this year's EUR 2,6 B.

What remains to be decided is the funding of next year's EUR 2,4 B. 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 EUR 1,5 B to finance the energy part.

Support to the Dairy Sector

A EUR 300 M dairy fund to tackle the milk crisis is one of the European 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 EUR 300 M. Earlier this week, the European Commission supported the idea, but proposed EUR 280 M.

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 EUR 600 M. 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.

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