§ Mr. Peter AinsworthTo ask the Chancellor of the Exchequer if he will make a statement on the outcome of the recent meeting of the European Community's Budget Council.
§ Sir John CopeThe Budget Council met in Brussels on 16 November. As President of the Council, I chaired the meeting. The Council rejected most of the European Parliament's amendments and modifications to its first reading draft budget, establishing a second reading draft budget for 1993 totalling 65,863 mecu—£53,735 million1 —in commitment appropriations, compared with the total after the first reading of 65,704 mecu—£53,605 million. This represents an increase over 1992 of 3.06 per cent. against a Commission bid of 8.4 per cent. and the Parliament's proposed 9.8 per cent. Payment appropriations represent 1.08 per cent. of Community GNP, compared to a ceiling of 1.2 per cent. in the own resources decisions, leaving a cash margin of around 6.735 billion ecu—£5.5 billion.
The negotiations on the 1993 budget will continue and the Council has confirmed its intention to agree a complete budget on time in December. The budget will, therefore, need to give budgetary effect to decisions to be taken at the Edinburgh European Council on the Delors II proposals; and, in particular, to fulfil the political commitment to set up a cohesion fund early in 1993.
The European Parliament will consider the draft budget at its plenary session in December. The Parliament is expected to vote on the 1993 budget on 17 December, which if accepted would be formally adopted later in the month to take effect from 1 January.
1 Converted at the rate of £1 1.2257 ecu, the rate notified in the Official Journal as prevailing on the last working day of last month (30 October).