EC Rejects Proposed EUR 50 B Budget Cut

The European Commission rejected Tuesday a proposal for a EUR 50 B cut in the EU budget for 2014 – 2020.

Cyprus, which currently holds the rotating Presidency of the EU, presented a revised version of the budget involving savings of at least EUR 50 B described as "a starting point" in the talks for some Member States, according to reports of dnevnik.bg.

The EC seeks a budget of EUR 1.03 trillion, up by 5% from the budget for 2007 – 2013.

However, seven major contributor states have opposed the proposed increase at a time of stringent budget cuts in a number of countries.

Germany, France, and Britain insist that the EU cannot expect to receive more when they need to cope with less, demanding that the 2014-2020 budget should be slashed by EUR 100 B or even more.

The EC, however, confirmed its commitment to its proposal, stressing that it would achieve a good balance between the policies at a time of crisis.

The EC statement argued that the EU budget had to be a tool for investment in growth and employment.

The Commission added that it intended to continue efforts to achieve an agreement at a special summit scheduled for November 22 – 23.

European Council President Herman Van Rompuy warned that the budget talks would be difficult and called for compromise on all sides