Crisis-stricken countries prepare for budget battle with Parliament
European Union member states are on a collision course with the European Parliament as they insist that more than €500 million be cut from next year’s EU research funds.
On 25 July the Council of Ministers, which represents member states in EU governance, demanded cuts to the European Commission’s budget proposal for 2012 by a total of €129 billion, or 4 per cent (see table via link below). This includes a proposed €563m cut to research, most of which will come from Framework 7 and the Competitiveness and Innovation Programme.
Member states say the cuts are necessary to keep EU spending in line with national budget cuts resulting from the financial crisis. The Council of Ministers says the budget should only increase by around 2 per cent on the 2011 budget—which is in line with inflation. However, Parliament has made clear that it wants the budget—and especially research spending—to be protected.
A source within the Council of Ministers told Research Europe that member states used data from previous budgets to see how quickly different budget lines had generated benefits. They found that research spending was slow to generate measurable results, which is why they decided to target it for cuts.
However, defending the move, the Council source said: “If you examine carefully you will see that nearly every budget line has been hit.”
The source pointed out that there would be no decrease in real terms, but a “decrease of the increase” as the overall EU budget will still go up by at least 2 per cent under the proposals.
Research spending is one of the worst-hit areas in the Council’s budget proposal, suffering an approximate 8 per cent cut, compared with the 2011 Framework 7 budget of nearly €7bn. Under normal circumstances, the amount available for research in Framework 7 increases every year until the programme ends in 2013. In addition, the proposed 8 per cent cut for research is twice the 4 per cent average cut across other funding areas.
The Parliament, however, has already made clear that it is prepared to fight to save research from cuts. Herbert Reul, who chairs the Parliament’s Industry, Research and Energy Committee, says: “If you want to realise planned research initiatives effectively it is crucial to make use of funds set aside under the multi-annual financial frameworks.”
Reul told Research Europe that cutting research endangers Europe’s tentative steps towards economic stability, as science and technology play a crucial role in the continent’s competitiveness.
The Commission outlined its budget proposal for 2012 in April, aiming to spend €132.7bn on all EU activities. Of this, €57bn is dedicated to what is called the Sustainable Growth budget line, which includes Framework 7 and other science, innovation and education-related spends.
The Council of Ministers proposes to cut a total of €2.4bn from this budget line (see table via link below). According to information seen by Research Europe, three countries, the UK, Sweden and the Netherlands, wanted larger cuts and voted against the proposal in the last Council debate.
“Those who have not agreed are net payers, meaning they pay more into the EU than they get out,” explains a diplomat involved in the discussions. “They wanted larger cuts because the more money is cut from the budget, the more they have to gain.”
EU expenditure is divided into multi-annual financial frameworks, which outline spending over a 7-year period to allow for long-term planning. However, these plans are not untouchable, and can be amended as Council and the European Parliament see fit.
Daniel Tarschys, a professor of political science at Stockholm University, believes that member states are targeting research funds because this is an area they are unable to control with any precision: there is no guarantee that these funds will flow back to the nation states.
“The member states prefer allocations that have a clear pre-determined geographical destination,” says Tarschys, who was secretary general of the Council of Europe, an organisation of EU heads of state, between 1994 and 1999. “Since R&D expenditure is largely distributed along excellence criteria, they do not know in advance where it will land, and some countries have low expectations.”
The Council of Ministers’ budget position will be forwarded to the European Parliament, which will develop its own position on the issue throughout August and September.
In early autumn the Parliament will publish its position on the EU budget, and in October or early November there will be a final budget session in which both Parliament and Council will look for a common proposal.
Their decision will then go back to the Commission, which will coordinate EU spending in 2012 accordingly.