Budget deadlock must be broken for EU to prosper

We need the EU budget negotiations to succeed, to show that an enlarged EU is capable of making difficult decisions, writes José…

We need the EU budget negotiations to succeed, to show that an enlarged EU is capable of making difficult decisions, writes José Manuel Barroso

No one, goes the saying, who likes law or sausages should see them being made. I would add the European Union's multi-annual budget framework, the Financial Perspectives, to that list. Haggling over money is not a pretty sight. Tempers fray. Accusations fly. Statistics are twisted to suit self interest. But one point is clear. The current deadlock over the Financial Perspectives is bad for all of us. Europe needs a budget which is ambitious and fair. And it needs agreement to it at the summit two weeks from now.

Why does the budget matter? At first sight the EU budget appears as interesting as a telephone directory. But we need to look beyond the numbers and focus on the benefits which the budget brings.

The budget supports the transformation of countries, turning potholed roads into high-speed railways. It helps European researchers lead the world in developing cleaner, securer energy. It underpins integration within local communities. It enables the management of the countryside. It delivers drugs to Aids sufferers in the poorest parts of the world. It buys equipment to fight organised crime. It allows thousands of students to visit and study in other European countries.

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In short, EU investment is a vehicle for solidarity, opportunity and innovation.

Why more money to Europe? Because the EU cannot function without it. The budget provides the means to deliver our common objectives. I do not endorse spending for the sake of it. We can do more, better, on research, on agriculture, on infrastructure, on the environment, than we can do alone nationally.

Why the urgency? Because without agreement in the coming weeks, much of Europe's spending could come to a halt; except for agriculture. New programmes would be put at risk. Some say we should wait a few months, and try again; but what would change between now and then to make agreement easier?

But more than money is at stake. The context is an uncomfortable one for Europe; low confidence, global uncertainty, questioning of the direction of the EU. We need to show that the enlarged EU can reach difficult decisions. A deal would demonstrate that there is no contradiction between enlargement and integration - indeed, one must feed the other.

I will not, however, accept a deal at any price. I do not accept using urgency as a pretext for a minimalist Europe. European leaders agreed that the European Commission, at the recent Hampton Court summit, should develop European policies on energy, research, higher education, security and immigration. These policies cost money. Without it, strong words and good intentions will never be translated into reality.

So a deal in two weeks needs to match our political ambition with resources. What are the priorities?

First, making an enlarged Europe work. A Europe of 27 cannot progress with a minimalist budget, or no budget at all. The new member states have injected new dynamism into the EU. This must be reciprocated by support for their development. This is a win-win for all member states. It is not a zero sum game.

Second, promoting growth and jobs. More resources must go towards innovation and research. And we must help people adapt to change. I have made proposals on this in recent weeks.

Third, setting out a path to further modernisation of the budget. An ambitious review remains a key to unlock agreement. The EU needs to take a fresh look at all aspects of its spending and resources.

Fourth, ensuring fair burden- sharing. By 2013 about half the budget will be going, rightly, on investment in the new members. Everyone must pick up their part of the bill. No member state can do enlargement on the cheap.

Finally, involving all the players in the negotiations. Agreeing between member states is not enough. The final deal has to be between them, the Commission and the European Parliament. Handing the Parliament a fait accompli should not, and will not, work.

So, we have two weeks in which to show that the enlarged EU is capable of agreeing a fair, modern budget which meets the challenges of tomorrow. I will devote all my energy to this task. So must the member states - especially the British presidency. They hold a special responsibility. The process may not be a pretty sight. But the right outcome is essential, to meet the expectations of all Europeans.

José Manuel Barroso is president of the European Commission