Barroso seeks backing for bold economic reforms

Changes to the EU's budget cycle

Barroso called for a change to the EU's budget cycle. He said the seven-year budget cycle should be replaced by a ten-year cycle, divided by a mid-term review. He said a “five-plus-five option” would allow a review that would be in line with the five-year mandates of the Commission and the Parliament.

He called for “an ambitious post-2013” EU budget that would be able to fund policy priorities. He said a review of the 2007-13 EU spending programme would launch a debate “without taboos” to prepare for the next programme, which starts in 2014 and will be negotiated by member states and the Parliament next year.

He said the Commission would look at finding new sources of financing to help big infrastructure projects across Europe, such as roads and bridges. He said he would propose setting up EU project bonds together with the European Investment Bank, which would help pay for the construction projects.

The Commission president argued that the EU needed to address the way it financed its budget. “The current system is stretched to its limits [and] propped up by a Byzantine set of corrections,” he said. Member states have already criticised suggestions that the EU should have its own tax to fund the budget. 

Barroso's priorities

Dealing with the economic crisis and governance: debt reduction, better surveillance, monitoring and enforcement of the stability and growth pact.

Restoring growth for jobs by accelerating the Europe 2020 reform agenda: getting more people into jobs, boosting the competitiveness of companies and deepening the single market.

Building an area of freedom, justice and security: implementing the Stockholm action plan, cracking down on exploitation of illegal immigrants and tackling threats of organised crime and terrorism.

Launching negotiations for a modern EU budget: pooling spending to cut costs and improve the return on investment.

Getting the EU to punch its weight on the global stage: in relations with strategic partners, establish a common agenda with a clearly defined European interest.