The Agenda 2007 Proposals : Evolution or Revolution ?

On 10 February 2004 the Commission published its proposal for the financial perspective 2007-2013. A week later it adopted the third report on economic and social cohesion. These two documents form the basis of the so-called ‘Agenda 2007 reforms’. They will be the greatest challenge for the enlarged EU after the intergovernmental conference, since they will determine the financial basis for EU policy-making until the middle of the next decade. The Agenda 2007 proposals certainly hint at courageous reforms, because they place a previously unheard-of emphasis on performance and quality. Under the proposals, structural operations should generate value for money, and the funds should focus on projects which generate added value at a European level. Overall the Commission’s proposals point in the right direction, because they balance, on the one hand, solidarity for the new Member States and weak regions in the old Member States with, on the other hand, investments in future tasks. Moreover, they constitute a paradigm shift. For the first time, the Common Agricultural Policy will not be the dominant expenditure category. Now it is up to the Member States to examine the proposals politically and find a compromise between sometimes very divergent interests. It is to be hoped that, during the debate over expenditure limits and division of funds, national interests do not outweigh European interests. a new type, since they aim to underpin the Lisbon and Gothenburg strategies with financial resources. The proposed modifications to structural policy are less apparent, but nevertheless will undoubtedly have a major impact at regional and local level. The political priorities of the financial perspective 2007-2013 Originally the publication of the Agenda 2007 proposals was planned for the end of last year, but the 20 Commissioners needed more time than expected to agree on a joint proposal. Unusually in the decision-making process, the Commissioners were openly divided over this important reform package. That this was so gives some indication of the strong pressure already brought to bear on the Commission in this early phase of negotiations. Although the controversy among the Commissioners happened mostly behind closed doors, it became apparent that it touched the very principles of EU cohesion policy. Some voices questioned the very basis of the policy. Would it not be more efficient and effective if the EU transferred competence for regional policy back to the Member States? The economically stronger Member States could then pay directly to the economically weaker ones, which in turn could utilise Would it not be more efficient and effective if the EU transferred competence for regional policy back to the