EU Bloc - EU Budget regulation Treaty

The Czech Republic understands the need for short term austerity, but does not understand why temporary problems require a treaty which would effectively freeze the EU budget in real terms for an indefinite period of time. The Czech Republic especially disagrees with 2.1, and believes that an above inflation rise would be more beneficial for the countries of Europe. The Czech Republic also believes that 1.1 should be amended to allow a budget rise equal to inflation.

Portugal is against this and would like to remind Representatives from the Eastern part that a lot of money comes from EU through the Cohesion Policy etc.

The debate should be about growth etc.

OOC: the reason is due to existing commitments

The MHoC believes that the EU can not preach austerity, but demand a rise. Member states can not afford it at this current time.

The EU should not demand above inflation rises - ever.

We of course believe that the debate should be about growth, but economic growth does not come from Government or EU spending. The EU should look to cut staff. Savings can and must be made.

The Kingdom of Denmark feels that this is a quite reasonable proposal. Though we have confidence in our policy of deficit reduction, this reprieve would allow us to meet the EU standard of less than 3% of GDP faster.

We also wish to remind the Portuguese Republic that unless they make a concerted effort to similarly get their finances in line, we simply will not support any further financial assistance.

OOC: I don't know what is happening in Portugal regarding the management of finances and getting it under control and the same thing can be said of Italy and Spain. As for Greece which is the main talking point at the moment who knows what will happen.

The Czech Republic believes that the EU budget at the very worst could be frozen in real terms during these times of trouble, and thus does not agree to an absolute freeze on the EU budget which would simply weaken our organisation.

The Czech Republic is saddened by the HOC's view on the EU budget, but remains committed to an ever closer union.

The Czech Republic agrees that a rebalance of spending should be sought to spend more on infrastructure and reaserch (instead of bureaucracy), though we do not believe that this requires an overall cut in the EU budget in real terms.

The Kingdom of Denmark feels that this is a quite reasonable proposal. Though we have confidence in our policy of deficit reduction, this reprieve would allow us to meet the EU standard of less than 3% of GDP faster.

We also wish to remind the Portuguese Republic that unless they make a concerted effort to similarly get their finances in line, we simply will not support any further financial assistance.

The MHoC believes that the Czech Republic should consider the following issues. Member states are having to cut their budgets in order to make ends meet. It is not acceptable for the EU to be demanding budgetary discipline while not following its own mantra. The EU gives back surpluses to member states (I believe) so why can the EU simply reduce the budget so that a surplus does not occur.

Our view is simply sensible economics.

We are not advocating a freeze in the budget forever, only for the next five years and during recessions and their recovery. During the good economic times, the EU budget may rise.

Latvia supports the freeze on the EU Budget. Many EU funds are squandered on projects we do not need and should be engineered to give small and medium sized businesses incentives to expand their workforce and invest in new markets. Europe should be about growth and prudence over the next few years and Latvia agrees freezing the budget is a necessary step.

The Czech Republic sends its sincere condolences to the British people, one of the main victims of austerity. The Czech Republic however does not believe that short term problems can justify attacks on the long term European project.

The Czech Republic strongly believes that the most sensible approach is always greater cooperation, which allows us to minimize costs and avoid overlaps. The Czech Republic is committed to supporting all joint infrastructure, research and defence programs.

The Czech Republic would like to remind the MHoC that what they are advocating here is a permanent EU budget freeze (in real terms), something which the Czech Republic will oppose.

Latvia supports the freeze on the EU Budget. Many EU funds are squandered on projects we do not need and should be engineered to give small and medium sized businesses incentives to expand their workforce and invest in new markets. Europe should be about growth and prudence over the next few years and Latvia agrees freezing the budget is a necessary step.

The Czech Republic has not answered the MHoC's main question. Does the Czech Republic believe that it is right that the EU should preach austerity, but not practise it?

Joint projects are not needed.

We are willing to examine the case for rises in the budget in the case of article 2 if the Czech Republic is willing to soften her position.

The Czech Republic agrees that cuts in bureacracy are needed at an EU level, and is prepared to accept a real terms freeze in the EU budget over the next years.




The Czech Republic believes that joint trans-European projects can be beneficial to all parties in terms of efficiency. Working together is always better than doing it seperately.




If article 2 is amended to allow above inflation rises in the future, then the Czech Republic shall certainly consider supporting this proposal. However, the Czech Republic cannot guarantee support until the details of the amendment are revealed.

If the MHoC were to alter to article 2 to peg any rise at 2% above inflation in article 2, would the Czech Republic allow article 1 and 3 to proceed unchanged?

The Czech Republic would suggest:
1) Ammending article 1 to a budget freeze in real terms, not absolute
2) Change 3.4 to one year
3) Article 2 can be altered to 1.5% instead of the proposed 2% (as a 'compromise' for the change to article 1 and 3)

If those three changes are made, the Czech Republic will support this Treaty. In addition the Czech Republic will also be prepared to look into changing the focus of the EU budget priorities, once the 2012-17 budget totals have been agreed.