The European Parliament approved the 2011 budget on Wednesday, after a battle with Britain and several other member states forced the legislature to cut some extra spending attacked as wrongheaded at a time when national governments are cutting back due to the debt crisis.
The parliament voted in Strasbourg, France, on Wednesday with an overwhelming majority on a budget increase of 2.91 percent next year. It had initially sought a 6 percent rise to match its extended powers and expenses under a new treaty. The belated approval means the EU will not have to live off restrictive monthly stipends from January. Many member states which are forcing through austerity measures at home because of the financial crisis refused to back a big increase for the EU itself. Under the compromise agreement, the parliament says it made sure that a series of special programs would get priority backing.
"Now we have a budget for 500 million Europeans. Now we can tackle the real problems," said EU Budget Commissioner Janusz Lewandowski. "Europe need us to tackle real problems, not quarrel over institutional issues." Yet, the budget issue had been a battle of wills between member nations and the legislature over expanded powers and funds and who ultimately controls them. The EU budget will total 126 billion ($177 billion) and is primarily used to fund agriculture and aid programs to the EU's poorer regions. The EU Commission said that some 90 percent of that budget boosted growth and jobs.