By Vivienne Russell | 13 September 2013
The European Union needs to ‘step up its game’ in implementing the Multiannual Financial Framework, its budget for the next seven years, EU Commission president José Manuel Barroso has said.
In his annual state of the union address, delivered this week, Barroso said the budget was the most ‘concrete lever’ the EU had to stimulate investment.
‘In some of our regions, the European Union budget is the only way to get public investments because they don’t have the sources at national level.’
The MFF for 2014-20, signed in July, was the first time the EU agreed to cut its budget, with spending set to fall by 6% next year.
Barroso admitted that both the European Parliament and Commission had fought for an increase in funds, but he acknowledged that the budget, which provides €960bn over seven year, remained generous.
‘One single year’s EU budget represent more money – in today’s prices – than the whole Marshall Plan in its time,’ said Barroso.
‘Let us now make sure that the programmes can start onJanuary 1 2014, that the results are being felt on the ground and that we use the possibilities of innovative financing: from instruments that have already started, to European Investment Bank money, to project bonds.’
He added that the Commission would deliver its side of the bargain, agreed when the MFF deal was struck, to provide updates. ‘We will, for example, present the second amending budget for 2013 this month,’ he said. ‘There is no time to waste, so I warn against holding it up. In particular, I urge member states not to delay.’
Elsewhere in his speech, the last before next year’s European Parliament elections, Barroso said voters should be told that it is not Europe that is forcing national governments to cut spending.
‘We can remind voters that government debt got way out of hand even before the crisis, not because of, but despite, Europe.
‘We can add that the most vulnerable in our societies, and our children, would end up paying the price if we don’t persevere now. And the truth is that countries inside the euro or outside the euro, in Europe or outside Europe, are making efforts to curb their very burdened public finances.’
