The EU Budget: a tool for investment in jobs and growth

April 27, 2012 9:35 am

The EU budget never fails to attract the attention of the UK press. This week’s proposal for a 6.8% rise in the EU budget for 2013 certainly grabbed the headlines. At a time when the Tory-led coalition is making devastating cuts to the funding of public services, it’s easy to see why people think an increase in the EU budget is unacceptable.

​So what’s the reason for this increase? Commissioner Lewandowski explains that this money is already committed to projects – bills need to be paid, even in times of crisis.  The UK government has already made clear that they think this level of increase in unacceptable. But what they fail to tell you is that they agreed to fund projects and programmes that now need to be paid for. If the UK, like some other member states, want to achieve a real terms freeze, they have to be ready to identify areas where real savings can be made.

Take the Common Agricultural Policy for example. The Tories often wax lyrical about reform of the CAP, but failed to vote for a number of amendments put down by Labour MEPs to scrap wasteful export subsidies that are actually undermining our efforts to fight against global poverty. Of course, we know that in order to make long term savings in this area, we need real reform of the CAP. It’ll be interesting to see if Cameron can deliver on this when the next seven year spending framework is decided, or whether he’ll leave the CAP unreformed in return for a spending freeze and keeping the UK rebate.

Since the crisis, Labour MEPs have maintained a consistent line on the overall increase of the EU budget. We need to achieve a real terms freeze. You may ask how this position differs from that of the Tories. The real difference is this: we take real action. We don’t simply condemn the increase, but demonstrate where savings can be made.

My recent report on the European Parliament’s budget demonstrates this. I have managed to achieve a real terms cut for 2013 by freezing all members’ allowances until the end of the current mandate, cutting expenditure on travel and making efficiency savings across the board. My report also outlines where the biggest saving for the tax payer could be made: a single seat for the European Parliament. This could save millions of pounds every year and also help to reduce our carbon footprint.

The 1.96% increase adopted by a huge majority is the starting point for negotiations. By the end of the year, I hope to have found additional savings which will further reduce the increase.

The EU budget should be seen as a tool for investment in jobs and growth. Billions of pounds have been pumped in to UK regions to help economic and social cohesion. Take Wales as an example. Every year, Wales receives around 400 million pounds of European funding which provides a valuable boost to local businesses, helps get people back in to work and supports community initiatives. Can you imagine a Tory-led government offering the same deal? This funding is vital for our regions and any cuts in this area would without doubt penalise the poorest in our society.

A freeze can be achieved but only by making targeted savings and by reprioritising spending. It can’t be achieved by empty rhetoric.

Derek Vaughan is a Labour MEP for Wales and the EPLP spokesperson on the EU Budget

  • GuyM

    The 2010 general election elected a government in favour of cutting deficits and government spending.

    An undemocratic EU should not seek to overturn that democratic reality by forcing through large budget increases even when all across Europe spending is being reduced.

    The fact that it is trying shows why the UK should refuse to fund its demands and hold a referendum immediately.

    • JoeDM

       Absolutely spot on.

      The EU is nothing but a drain on British enterprise.

  • Bill Lockhart

    The EU budget: a tool for waste, corruption and utterly pointless fat cat politicians.

  • https://mikestallard.virtualgallery.com/ Mike Stallard

    “the Tory-led coalition is making devastating cuts to the funding of public services”

    Total cuts~: £8,500,000,000.
    Total demand by EU = : £10,000,000,000.

    As a Tory Troll from Southern England, I must say that I am disgusted by the fact that this government is not cutting at all. The deficit and debt are increasing by leaps and bounds – much faster than that in USA (See John Redwood today for the figures).

    And I adore the naivety of your advice to the EU! Honestly! I am speechless!

  • Europhile

    The EU budget is far too small to have any significant economic impact.

    In any case the Council has in the last two years insisted on cutting the Commission’s proposed budget and after a lot of huffing and puffing the European Parliament has accepted the Council’s position.

    To save money they might want tob egin with their own bloated bureacracy at senior level, appointed on the back of political cronyism of the most blatant kind, Directors for everything under the sun, a ridiculous visitors centre for visitors who would come anyway,( being subsidised) the vainglorious House of Europe project and sundry other nonsenses

  • Pingback: Tooting Labour Party » News from Labour MEPs

Latest

  • News Latest Mayoral poll shows Hodge joining Jowell as front-runner

    Latest Mayoral poll shows Hodge joining Jowell as front-runner

    Margaret Hodge has joined Tessa Jowell as one of the front-runners in the Labour Mayoral race, according to the latest Evening Standard poll. Today’s poll, carried out by YouGov, shows that amongst Labour supporters Hodge is in clear second place, four points behind Jowell, and four ahead of the next contenders Doreen Lawrence and Sadiq Khan. But aside from Hodge and Jowell, it’s a somewhat close contest – Diane Abbott is only two points behind Lawrence and Khan and she is […]

    Read more →
  • Comment Labour will not ignore calls for action on asbestos

    Labour will not ignore calls for action on asbestos

    This post is written by Kate Green MP and Stephen Timms MP Earlier this week Labour’s frontbench Work and Pensions team met campaigners and experts to discuss the critically important issue of exposure to asbestos. Around 4,000 people die each year from mesothelioma and asbestos-related lung cancer, 11 people for every day of the year. The UK has the highest incidence in the world. The asbestos-related disease, mesothelioma, has a long latency period and is almost always fatal. Asbestos in […]

    Read more →
  • Featured Putting fans at the heart of football could reverse the march of money

    Putting fans at the heart of football could reverse the march of money

    They came to take the name down from outside the ground with all the finesse of a vandal or a thief. The S was the last to go, but the scarred brickwork where the rest of the letters once stood told their own story. St. James’s Park – a giant (albeit lopsided) ground that dominates the skyline of Newcastle was being renamed. The “naming rights” (there’s a phrase to make the skin crawl) had been taken by Sports Direct, the […]

    Read more →
  • News Labour plans to increase fan representation in football welcomed by supporters

    Labour plans to increase fan representation in football welcomed by supporters

    Labour have today announced plans for sweeping reforms of the football industry that would see an increase in fan participation in the running of football clubs. After consultation with 95 football supporter organisations, Labour propose that directors’ boards for each club will feature t least two representatives of a supporters’ trust. Trusts will be able to appoint and remove these members. In the event that a club changes ownership, trusts will also have the right to purchase up to 10% […]

    Read more →
  • News Liam Byrne hints at graduate tax proposals

    Liam Byrne hints at graduate tax proposals

    On higher education fees, the Labour leadership have been relatively quiet. At 2011 Labour conference, Miliband previously talked about cutting tuition fees from £9,000 a year to £6,000. But with the 2014 conference behind us and the general election 7 months away, there’s still no mention of what Labour’s policy on fees is. In an interview with The House, Liam Byrne, Shadow Minister for Universities, Science and Skills has broken this silence. Sort of. He made it clear that the […]

    Read more →
7ads6x98y