EU Budget Surplus

HC Deb 02 December 2002 vol 395 cc501-2W

Mr. Chope

To ask the Chancellor of the Exchequer what representations he has made to the European Commission in respect of the EU Budget Surplus in(a) 2000 and (b) 2001; and if he will make a statement. [84773]

Ruth Kelly

The Council's recommendation on discharge to be given to the Commission in respect of the implementation of the budget for the financial year 2000 included the following comment on EC budget surplusesThe Council notes the persistence of significant surpluses at the end of the financial year. This tendency could affect the credibility and sound management of the Community budget. The origin of these surpluses lies in incorrect estimates of both revenues and expenditure. The Council urges the Commission, with the collaboration of member states, to make more precise estimates of sources of finance and to adapt expenditure estimates to real requirements.

The UK supported this recommendation.

The UK will press for the Council's recommendations to the European Parliament on discharge to the Commission for the 2001 budget to include use of the Supplementary and Amending Budget procedure to revise budgets in year, to prevent large surpluses materialising in future and to implement, in conjunction with member states, more realistic forecasts of projected Structural Fund payments.