Committee guide: Unpaid EU bills top priority for BUDG

Jean Arthuis is urging MEPs to 'build bridges' with their national counterparts and work to restore citizens' trust.

By Desmond Hinton-Beales

14 Oct 2014

For someone who was "finance minister and spent most of his political career at the helm of the budget committee of the French senate, it is odd to be in an institution deprived of financial autonomy", says Jean Arthuis. Chair of parliament's budgets (BUDG) committee, the French MEP says the "primary function of member states' parliaments, alongside law-making, has always been to approve taxation. In contrast, the EU cannot raise taxes, as this is a competence that remains within the remit of the member states and will continue to do so until such time as the EU is given its own resources." However, Arthuis stresses, his committee "remains instrumental in discussing, amending and adopting the EU budget proposed by the commission". By doing so, he says, "we push priorities and make sure member states provide the necessary credits for the political tasks they have entrusted the EU with".

"When I was elected chair, I suggested to my colleagues we establish as soon as possible a roadmap for the years to come," he says. "The most pressing issue," highlights Arthuis, "is the alarming situation of payments: bills engaged for EU programmes the commission cannot pay because the council refuses to provide the promised and necessary money". "The shortage of payments puts actors on the ground in a difficult position and severely hampers the credibility of the EU," he warns. "We need to find a structural answer to mounting EU debt. After that, I believe we will do our utmost to obtain the promised revision of the multiannual financial framework; a seven years budgetary straightjacket which new elected members had no say on."

"The most pressing issue is the alarming situation of payments bills engaged for EU programmes the commission cannot pay because the council refuses to provide the promised and necessary money"

Arthuis is firm in his belief that the results of the last European elections have given MEPs "a duty to reconnect with citizens". To help in this matter, he recommends "building bridges with our colleagues from the national parliaments". "There is a mutual distrust between national parliaments and the European parliament. I think this is wrong, we need to work together to make the case for Europe," he adds. The ALDE deputy also points to the governance of the eurozone as "a subject dear to my heart". "I believe," he says, "that the euro area will need to have its own budget if we are to translate the de facto solidarity that exists between member states sharing the same currency and the same destiny."

Looking forwards, Arthuis admits that while he was "very critical of Jean-Claude Juncker when he was chair of the eurogroup, he has given a very good impression as president-elect". However, he harbours doubts over the "€300bn investment plan Juncker announced in July". "Nobody really knows where the money will come from," he says. "We hear it could partly be a reshuffling of existing or unused EU funds. If Europe intends to have a leverage effect, it will have to take risks, and risk must be translated in budgetary terms. I am acutely aware that the financial backstop at our disposal is very limited. If this €300bn euro investment operation fails the Juncker commission's authority will be marred for the next five years."

Jean Arthuis is chair of parliament's budgets committee

 

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