2012 EU budget
Commission says payments 4.2 bn euro above forecast
By Gaspard Sebag | Wednesday 27 June 2012
In its traditional ‘budget alert’ stock-taking exercise, the European Commission stated, on 27 June, that the implementation of payment appropriations in the 2012 EU budget was €4.2 billion above forecast on 31 May. “We can expect a shortfall of several billion euro for sure in the second half of the year,” Budget Commissioner Janusz Lewandowski said. Therefore, as
Europolitics (4447) reported, an amending budget will be needed.
Lewandowski knows he will have a hard time convincing member states, struggling to keep their national finances under control, to fork out some extra cash. He is nevertheless “optimistic” as any money sent to the EU budget – sources say €4-5 billion will be needed – will then flow back to the finance ministries, waiting for reimbursement for completed EU projects. His argument: “We are not helping much in this crisis environment when we are delaying because we are somehow deteriorating the liquidity of the member states”.
Total implementation, at the end of May, amounted to €74.4 billion (59% of available appropriations). This is €7.1 billion more than had been implemented on 31 May 2011. The biggest difference between the forecast and the actual implementation is for cohesion (Heading 1b), where actual payments made outstrip the forecast by €3.1 billion. Agriculture (Heading 2) is also above forecast by €1.3 billion.
Overall, the implementation of commitment appropriations, at end-May, amounted to €125 billion (86.9% of available appropriations). This is €0.5 billion above forecast implementation, and €4.4 billion more than the implementation at the same point of time in 2011. Not to worry, says the Commission, as the implementation of commitments is expected to stabilise by the end of the year, with full implementation.