Institutions reach ‘political agreement’ on EU budget for the next seven years

A political agreement on the European Union's budget for the coming seven years has been reached, European Commission President Jose Barroso announced today.

The agreement on the Multiannual Financial Framework for the next seven years, described as "a good deal for Europe", was reached between the European Parliament, the Council and the Commission and comes ahead of a meeting of the Heads of State taking place later this evening.

"This is a good deal for Europe, this is a good deal for European citizens, this is a good deal for the European economy," Barroso said.

The deal includes more flexibility on both payments and commitments and includes frontloading of expenditure on critical issues like youth employment, research, youth and SMEs. It also includes also the possibility for countries to increase the aid for the most deprived.

"The deal also confirms the agreement reached for this year amending budget and it gives guarantees that there will be the payments for European beneficiaries. This is extremely important namely for those regions and those citizens in Europe that badly need this investment," Barroso said.

"So, I want to make this point clear: when we speak about the Multiannual Financial Framework, the budget for Europe, this is not an abstract concept. This is the growth fund for Europe."

This evening's meeting of the European Council will focus on an investment plan for Europe, with structural funds deemed necessary for growth. The agreement reached on the MFF is deemed critical for Europe to start delivering on its compact growth promises. Heads of State must also agree on an ambitious programme to fight youth unemployment and help SMEs.

Addressing the press, EP President Martin Schulz admitted the agreement between the three institutions had not been "an easy compromise", commenting that he had "to fight" in the European Parliament for a majority.

He explained MEPs had been disappointed with the European Council outcome of 8 February, which they regarded as a combination of national interest and a budget which failed to be ambitious. Their goal was that the €908 billion foreseen in the next seven years would be really available, especially in view of some €55 billion from the current MFF which were either reimbursed, not utilised or used for different projects.

"I'm sure there are some who think this could be repeated. But to go down below €908 billion would mean continuing with a deficit structure," Schulz said, adding that 45% of the draft budget 2014 were earmarked to cover bills of the previous year.

Schulz admitted it will be a fight to convince the majority of the members of the European Parliament to vote in favour of the MFF 2014-2020 but gave his commitment that, as EP president, he will shoulder the responsibility for this agreement.

"I will ask the Conference of Presidents of the European Parliament to put a vote on next week's agenda and I will fight for a majority in parliament," he said.

Insisting that the political agreement reached was not what he thought to be the best solution, "but the maximum I could negotiate".

"And to make a choice between nothing and more, my personal conclusion is always 1% of something is more than 100% of nothing. And therefore I can live with the result and I will fight for the result," Shculz said, who at one point compared the Council with the Vatican's Conclave where the council could not be described "as a homogenous body".