Labour MEPs vote to reject European Parliament's budget increase call - 2011-10-26

MEPs and national governments need to deliver a responsible EU budget that refocuses European spending on those activities that will deliver jobs and economic growth.

That’s the view of Labour MEPs after the European Parliament voted for an above-inflation 5.23 per cent increase to the EU budget.

Labour voted against the European Parliament proposals because they want to see a real terms freeze in the 2012 budget.

Responding to the vote, Derek Vaughan MEP, Labour's spokesperson on the European Parliament's budget committee, said:

"Labour MEPs have voted against these budget proposals because the call for a rise of over five per cent is simply too much.

"Given the tough economic times, our constituents expect us to deliver a responsible EU budget, and Labour MEPs believe that means it should be frozen next year.

"But we also want a change in emphasis, so that money is directed into activities that boost jobs and economic growth right across the EU.

"Labour MEPs have identified a range of savings that could be made, from cutting support for tobacco and wine production through to ending wasteful export subsidies that are actually undermining our efforts to fight against global poverty.

"We have also found a host of savings in the EU administration budget.

"The EU budget already does a lot to support economic growth right across the European Union, including millions of investment in some of the UK's poorest areas.

"But it is possible to boost this good work while at the same time freezing the overall budget. All it needs is the political will to tackle some of the EU's thornier issues, in particular reform of the CAP.

"Some savings have been found, but not enough to keep the overall budget frozen so we were unable to support this budget."

Labour backed a number of proposals for spending in those areas that will help deliver economic growth, such as EU regional development funds and research and development, but voted against the final report because not enough was done to deliver the savings needed in other areas.

The European Parliament's decision today is not final and negotiations will now begin between MEPs and national governments to try to find an agreement over the 2012 budget.

› Back