Gilmore warns jobs in jeopardy after budget snub

Tánaiste Eamon Gilmore warned that billions of euro worth of projects designed to create growth and jobs were in danger after members of the European Parliament snubbed a meeting to reach agreement on the EU’s budget.

Meanwhile, economics commissioner Olli Rehn was under fire from MEPs for suggesting reforms could be slowed in some countries but hinted that while that might be economically wise, politically it could be difficult to do because of pressure from pro-austerity countries like Germany.

Chancellor Angela Merkel, who supports continuing austerity measures, said: “Growth only on the basis of state financing won’t make us more competitive in Europe.”

The Tánaiste said the EU budget is a key instrument to prime growth and job creation in Europe, reaching right down to the real economy.

The Irish EU presidency is in the throes of negotiating the EU’s seven-year budget — worth €1tn — with the parliament on behalf of the member states.

Unless agreement is reached within weeks, there will not be time to implement the complex legislation that must accompany the budget and as a result from next January, the EU’s funds would be managed on a year-by-year basis.

Following weeks of intensive talks with a range of different groups in the European parliament that must agree to the budget, a key meeting was called for yesterday with the Tánaiste attending.

However, without any prior indication that the process was in trouble, the MEPs cancelled the meeting on the budget — known as the multi-annual financial framework or MFF.

Mr Gilmore, speaking to a wide audience at the CEPS think-tank in Brussels yesterday evening, said the budget was central to progress on jobs and growth in Europe.

“If we fail to agree in good time, the union will struggle to plan, manage and programme the expenditure of €960bn of public money.

“That puts in jeopardy the efficient planning and spending of €325bn in cohesion funds for example, money that our regions and citizens are depending on, not least to provide jobs during this economic crisis.”