Five European leaders seek to freeze EU budget until 2020

Posted on Dec 21, 2010 in AllEconomic News
Five European leaders Saturday proposed to impose tighter financial regulations on the European Union by freezing the bloc’s budget until 2020.

In a joint letter to European Commission President Jose Manuel Barroso, France, Germany, Britain,the Netherlands and Finland made the appeal, saying the budget should not exceed the growth rate of inflation in the bloc’s long-term budget.

“A fiscal rule must be defined with respect to the overall level of expenditure by the European Union over the period (2014-2120) of the next financial framework,” the letter, published by the Elysee Palace, said.

The EU’s 27 countries are set to discuss the long-term budget which runs from 2014 to 2010 in mid-2011.

“The challenge for the EU in the coming years will not be to spend more but to spend better,” the letter said, stressing the necessity to improve spending efficiency, impose expenditure monitoring and use proper economic leverage on the EU level to curb rising public spending.

The joint letter was signed by French President Nicolas Sarkozy, German Chancellor Angela Merkel, Britain Prime Minister David Cameron, Dutch Prime Minister Mark Rutte and Finnish Prime Minister Mari Kiviniemi.

The European Parliament Wednesday adopted the bloc’s 2011 budget which has put the total expenditure at 126.5 billion euros (166.8 billion U.S. dollars), 2.9 percent higher compared with 2010.

Five European leaders seek to freeze EU budget until 2020 – People’s Daily Online.