Resolution on the financial provisions in the draft Treaty establishing a Constitution for Europe

The European Parliament adopted a resolution on the financial provisions in the draft Treaty establishing a Constitution for Europe. Parliament supports the financial provisions laid down in the draft Treaty even though it is aware that it does not preserve the current balance of powers between the European Parliament and the Council. The consensus reached by the European Convention leaves the final decision on own resources to the Member States, the final decision on the multiannual financial framework now included in the Treaty, after conciliation with, and consent of, the European Parliament, to the Council, and the final say on the annual budget to Parliament, and finally simplifies the budgetary procedure. Parliament has made significant concessions, in particular to insert the new multiannual financial framework into the Constitution and to leave the final decision on own resources to the Member States meeting in Council. Parliament condemned forcefully the suggestions regarding modifications to the financial provisions in the draft Treaty establishing the Constitution for Europe, discussed at the informal Ecofin Council in Stresa and at the Intergovernmental Conference. Such suggestions would represent a major and unacceptable step backwards compared not only to the draft Treaty but even to the current situation, and would radically modify the global institutional balance by reversing the budgetary powers in favour of the Council. Any attempt to reduce the powers vested in Parliament as an arm of the budgetary authority would result in creating a serious democratic deficit in the functioning of the Union.�