Budget Committee chair says funds may dry up

EU may run out of money this year - MEP

27.03.2013 - 20:25

Chair of the European Parliament's Budget committee, Alain Lamassoure, (EPP, FR) cautioned that the European Union's budget for 2013 may run out.

"The Commission proposal to settle only part of the EU's €16.2 billion debt rolled over from 2012 threatens the EU with insolvency later in 2013," he warned.

The parliament agreed with the European Commission and European Council that all bills will be settled.

Lamassoure continued, "There is a threat that the EU will run out of funds before the end of 2013. This is forbidden by the treaties and the Parliament will not accept a deficit"

He said that failing to settle all bills whilst debating a seven year budget "will not enhance our trustworthiness"

The committee chair was responding to a €11.2 billion amendment budget put forward by Commissioner Janusz Lewandowski, which the MEP said would leave a €5 billion deficit.

The two will continue the discussion at the next budget comittee meeting on 15 April.