EC Fears Bankruptcy, Votes through Emergency Cash Injection

EC President Jose Barroso is pictured here speaking at the start of the conference on `The Blueprint for a deep and genuine EMU: Debating the future economic, monetary, banking and political union`, in Brussels, 7 May 2013. Photo by EPA/BGNES

Тhe European Union has voted through EUR 2.7 B in new cash contributions from national treasuries after senior officials warned of the threat of chaos and unpaid EU bills.

MEPs approved the additional EU funding on Tuesday evening during an extraordinary meeting of Parliament's Budgets Committee.

"The amending budget is needed because revenue from import duties collected at the EU's external borders is far lower than was forecast by Eurostat (and endorsed by the EU member states) and thus had to be replaced by a higher GNI contribution," according to a statement of the European Parliament press office.

The additional budget will take the cost of Brussels overspends and shortfalls to over EUR 12 B this year and is likely to fuel anger at a summit of Europe's leaders on Thursday.

The emergency decision followed "an alarming phone call" from Jose Manuel Barroso, the commission president, to Martin Schulz, the speaker of the European Parliament.

"Mr Barroso warned that the Commission would no longer be able to pay legitimate bills from November onwards if the additional budget did not come through," said a statement by Schulz.

The European Parliament will vote its position on the 2014 budget on Wednesday.

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