SUPPLEMENTARY AND AMENDING BUDGET FOR 1981

by Altiero Spinelli

SUMMARY: The Parliament examines the Commission's proposal to amend the 1981 budget, particularly as a result of savings made in agricultural expenditure.

Togethcr with members of other Groups, Spinelli proposes that the funds saved should be used for a substantial increase in expenditure on structural policies.

Once again, a budget procedure is the occasion of a conflict between the Parliament and the Council, in other words a conflict between two diametrically opposed views of the Community's financial policy.

By a majority, the Assembly takes the line indicated by Spinelli and the other members who proposed amendments. In "Speeches in European Parliament, 1976-1986", Pier Virgilio Dastoli editor. (EP, 16 November 1981)

Mr President, allow me to go straight to the heart of the matter without looking at the details of the budget.

Confronted with this draft supplementary budget, Parliament can choose between the following options: it can approve it as it stands or reject it, which would be tantamount to approving it. If expenditure is reduced under the present 1981 budget VAT revenue will automatically be reduced by the same amount. The only difference is that instead of the reduction being made in December it will be postponed until April.

Thirdly, Parliament may propose modifications to compulsory expenditure on first reading, as it has done with reference to milk power. To take effect, these modifications would require a qualified majority in Council but it is quite impossible for such a majority to be obtained since the governments have already reached agreement on this expenditure. The approval of modifications can therefore only have the same result as the two previous options. In brief whether we approve, reject or modify this draft budget the result will always be the same. It will take effect exactly as it stands. Now for the fourth option: the only real alternative to simple approval is to amend the draft in respect of sections other than compulsory expenditure, i.e. by introducing amendments both on the revenue side and to non-compulsory expenditure. In that case, if we do not exceed the level of expenditure and, by analogy, the level of revenue shown in the existing budget for the current year, Parliament has the last word.

In deciding which of the two options to follow - acceptance in one form or another or amendments to non-compulsory expenditure - Parliament should remember that for years it has been demanding an increase in expenditure on structural policies as opposed to expenditure to support agricultural prices. Had the Commission lived up to its political responsibilities, it should itself have used the savings on the EAGGF guarantee section to propose equivalent increases in expenditure on structural policies. It has taken pains not do so and I would be the last to show surprise at this resigned attitude towards the possibility of achieving progress in the Community. But if this Parliament, at the very time when it has the possibility to act, does not wish to give the lie to all that it has said and repeated when it has expressed its political views in resolutions, it must vote in favour of the amendment by Mr Aigner, Mr Irmer, Mr Spinelli and others and decide - I use the word advisedly - that revenue is to remain at

the level shown in the current budget and that the expenditures saved will be assigned to Chapter 100 for structural policies which constitute non-compulsory expenditure. The appropriations which we are not reasonably able to spend or commit in 1981 will be carried forward, in accordance with our regulations, to the 1982 budget which badly needs them.

We the Italian Communist and Allied Members will therefore vote in favour of the Aigner amendment and I would urge all of you - unfortunately there is practically no one in the House at present but I hope that some Members will read my words in the 'rainbow' tomorrow - to reflect on the credibility of Parliament: will it be a Parliament that demands respect for its own resolutions?