The process of determining the size of the 2007-2013 EU-budget saw the 'Gang of Six', namely; Sweden, Germany, Austria, the Netherlands, France, and the UK prevail. This group of 'net contributor' countries constitute an informal alliance within the Community, the purpose of which is to ensure that the EU budget does not rise above 1.0 percent of the Unions' Gross National Income (GNI).
In constitutional terms, the Commission is tasked with constructing the initial proposal for the EU-budget. Their initial proposal, for the 2007-13, period was for 1025 billion euros, equivalent to 1.26 percent of GNI. The figure that was finally accepted was 863 billions euros, or 1.048 percent of GNI. In other words, approximately 20% less than the Commission wanted.
The European Parliament has the final say on the size of the budget. While the proposal they received from the Council of Ministers was equivalent to 1.045 percent of GNI, the Parliament finally decided upon a figure equivalent to 1.048 of GNI. In other words, the figure that the Parliament agreed upon was only slightly different from that of the Council, but far removed from the Commission's original proposal.
– We are satisfied, sums up the view of officials at the Ministry of Finance in Stockholm.
They explain the significant difference between the initial proposal from the Commission and the figure finally accepted by the Parliament, in terms of a lack of coordination within the Commission.
– They had simply added together what each Commissioner wanted, and that is somewhat irritating. We had at least hoped for some kind of priority setting, they added.
The Mediterranean countries, being net budget recipients, were of course quite happy with the Commission's original proposals, and thus less so with the final agreement.
Moreover, it should also be noted that while the symbolic 1% GNI barrier was breached, the 'Gang of Six' were professed to be 'quite happy' with the result.
By Odd Iglebaek