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Cause and Effect in European Politics and Law

Money was found for financing the "Baroso" Plan

Adelina Marini, April 28, 2009

2 bn euro from the budget of 2009 will be used to finance the 5.0 bn euro European Economic Recovery Plan, presented in the end of last year by the president of the Commission. Initially, it was not clear how the EERP will be financed, of which almost 4 bn is designated for energy projects, because under the current interinstitutional agreements transfers from one year to another, or for one thing to another are not allowed. It is only allowed if there's an excess of the budget to be returned to member states proportionally.

Yesterday evening the ministers of foreign affairs of the EU have decided during their session in Luxembourg that 2 bn of the excess of the budget will be relocated to finance the EERP. The rest of the amount for energy projects - 1.98 bn euro, will be paid, again through the excess of the budget but for next year by using compensating mechanisms. It is also possible some money to come from 2011, if the money is not enough.

The rest of the Plan of 5.0 bn euro will be spent for broadband Internet and the new challenges, defined in the Health Check of the Common Agriculture Policy (CAP). Therefore the ministers have decided to increase with another 600 mn euro the budget for 2009 and the rest of the money - 420 mn euro will come from next year's budget.

In the meantime, the ministers have also decided that there's no need, for the moment, of a correction of the overall budget, the financial perspectives, for the period 2007-2013.