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Spain’s Preferences in Budgetary Reform
Spain holds a key position in discussions on reforming the EU budget.
Unlike any other country, it has undergone an extraordinary
transformation: from being the largest net beneficiary in absolute
terms in the period 2000-06 to being a potential net contributor
starting in 2014. One of the factors in this evolution was the
country’s outstanding economic development of recent years,
which gave Spain a budgetary situation considered one of the best in
the euro zone (see Map I in the Annex). Another factor was the
virtual rise in the EU’s per capita GDP as a result of the
incorporation of 12 new member states. This increase, known as a
‘statistical effect’, was one of the key issues in the
last round of financial prospect negotiations.
Now a debate is under way at the European level on revising the
budget and EU policies. This budget review process stems from the
conclusions of the EU summit held in December 2005.[ The conference held in Brussels on 12 November of 2008 marked the end
of the public-debate phase that began with the European Commission’s
presentation of an issues paper in September 2007. It also marked the
beginning of a new phase in which the Commission is expected to
present a White Paper in mid-2009, with discussion later among EU
leaders.
In this context, it is possible the Spanish government’s
position on budgetary reform and in ensuing negotiations on financial
prospects after 2014 will be different from that which it held in
earlier discussions on budgetary issues. Spain is currently in a
unique situation and alert to any changes that might be introduced in
terms of spending and revenues. Although Spain has been a net
beneficiary of EU funds since it joined the bloc, one can expect
that, starting in 2013, it will achieve a net balance that is in
equilibrium with regard to the EU. Thus, any budgetary reforms that
are agreed will have a significant effect on Spain’s bottom
line. Reforming the income-and-spending aspect of the EU budget takes
on special importance for Spain because of the important financial
implications that such changes might have in the context of future
negotiations.
Thus, the net balance depends not just on the future of the cohesion
policy and possible new policies, but also on reforms of the Common
Agriculture Policy (CAP), a hugely important part of the EU budget.
‘In fact, we now receive more for agriculture than in
structural funds, and that trend is going to continue in the coming
years to the tune of €35,000 million’.
On the other hand, the new position could be seen as a comfortable
spot from which to launch initiatives, mainly in discussions on new
policies, including the role played by the Lisbon Strategy, and on
the future of the cohesion policy. This makes one think the Spanish
government might try to take advantage of its position and aim its
focus on overall debate covering both EU revenues and expenditures in
order to keep all its options open. This idea is reflected in the
Spanish document that serves as the official response to the process
of consultation launched by the Commission. This document stresses two lines or basic principles: fairness in
revenues and quality in expenditure. This argument does not come out of nowhere. It is based on the
position held in negotiations on financial prospects for the period
2007-13, in which the principles of fairness, sufficiency and
gradualness were given priority. That stance also backed up the paradigm of the
government of Prime Minister Jose Luis Rodríguez Zapatero to
the effect that ‘Spain has returned to Europe’. In these
last negotiations, new priorities to defend were introduced and they
stem from new policies and challenges, such as renewable energies,
sustainable development, and in particular investment in research,
development and innovation (R+D+I).
It should be recalled that, with the so-called Technological Fund
within the FEDER, the Spanish delegation managed to strengthen one of
its priorities in the year 2005. It was not just due to this fund.
Thanks to efforts at the national level, in recent years spending on
R+D+I in Spain increased around 100%, achieving in 2007 a record of
€6,450 million.
In order to highlight the importance that the Spanish government
attaches to bridging the technological gap that exists among the
countries of the EU, along with the increase in budgetary resources
available for R+D+I, the government has beefed itself up in this
regard. Signs of this priority are the naming of a coordinator from
the Spanish government to address the Lisbon Strategy, ‘Mr
Lisbon’, or the creation of a new Ministry of Science and
Innovation, as well as Spain’s efforts to serve as headquarters
for the European Institute for Innovation and Technology.
However, as shown in Maps II-IV of the Annex, in order to overcome
the distance between Spain and the most developed countries of the
bloc, even more efforts are needed, as is a new concept of
‘solidarity’ within the EU.
In any case, the future negotiations will have to take into account
the fact that, since the beginning of the talks on the Financial
Prospect for 2007-13, Spain has defended three basic principles,
which are still valid. At the outset of the process of revising the
EU budget,
the question is in what direction EU spending and income policies
should evolve, from the point of view of a country like Spain.
In the first place, there is the ‘principle of sufficiency of
budgetary means’. The budget that the EU approves for the next
programme period post-2013 should respect this idea in order to
guarantee achievement of the Union’s objectives and let it
confront successfully the challenges of the future, such as
immigration and technological innovation. For this reason, as stated
in the Spanish response to the issues paper, it will be essential to
develop a European immigration policy with specific goals and a
budget with enough funding to respond to a challenge that the entire
EU must face in a coordinated and all-encompassing fashion.
As for the challenges in innovation in the equation R+D+I, it is a
question of narrowing the ‘technological gap’ that exists
between the more advanced and less advanced member states. Spain is
among the latter. The goal must be to encourage and complement the
efforts of those member states which are striving to join, as soon as
they can, the leading group of European countries in the field of
research and innovation.
Secondly, in the last round of negotiations another argument used was
the ‘principle of fair distribution of the costs of
enlargement’. The idea was for the principle of fairness to be
observed in contributions to the EU budget. This principle of
fairness in contributions is one that will remain up for discussion
in the budgetary reform process and one which Spain has defended from
the outset.
Finally, in application of the ‘principle of gradualism’,
in the last negotiations Spain defended the need for adequate
transitional measures for those regions which lose their eligibility
for the Cohesion Fund, either because of a ‘statistical effect’
or through natural growth. This principle, which has been broadly
applied throughout the history of the EU, must be maintained.
This basic position, consistent with Spain’s clear drive to be
a part of a united Europe, extends to the budgetary review process
that is underway. Thus, the principle of fairness in revenues is
complemented with the principle of quality on the spending side.
Public opinion is crucial in shaping the arguments of the governments
of member states in financial negotiations, be they net contributors
or net recipients. Ever since Spain joined the European Community,
support among the Spanish people for the idea of integration has been
above the European average. And the proportion of those who think EU
membership is beneficial for the country is also well above the
European average. According to a recent Eurobarometer survey,
Spaniards are among the Europeans who claim to have the best
knowledge of how EU policy helps their city or region (62%) and among
those who are most pleased with the effects of this policy (84%).
However, the pro-European sentiment of Spaniards is not just a direct
consequence of all the benefits: on one hand, it is sensitive to the
national economic situation, in the sense that when the Spanish
unemployment rate goes up, public opinion not only feels that the
country receives fewer benefits but also has a less enthusiastic
feeling about EU membership. On the other hand, pro-European
sentiment also depends on political cycles. The less satisfied people
feel with democracy, the less enthusiasm they feel for Spain’s
integration with the continent and its being a member of the EU
(Barreiro & Sánchez, 2001, p. 50).
With regard to Spaniards’ knowledge of the budget, one thing
that stands out is the high percentage of people who could express an
opinion (32%), a figure well above the European average (see Graph
1). Data from 2006 show that 28% of those polled believed
administrative costs accounted for the biggest part of the budget and
only 9% knew that the Common Agricultural Policy was the main
category during the 2000-06 financial framework period.
Graph 1. In which of the following do you think the largest part of the EU budget is spent?

Source: Eurobarometer 66.
Graph 2. The EU budget in the financial period 2007-13

Source: European Commission.
Revenues
In the past few years, Spain’s contribution to the EU budget
has become larger and larger. This stems in part from the country’s
economic prosperity. But is it also a result of an increase in the
impact of correction mechanisms, which at the same time leads to a
rise in the contributions made by other member states. In this
context, and with the possibility that Spain at some point will
become an excessive net contributor, Spain will insist on fairness in
revenues as an essential principle of the EU’s new system for
managing its resources. The idea of this principle is that each
member state’s contribution should depend on its level of
wealth and prosperity.
If one follows the principle of fairness, this rejects any of the
existing correction mechanisms because their effects go against the
principle. As in previous negotiations, one of the main areas of
discussion will be the ‘British rebate’, both because of the growing
increase of the Spanish contribution toward financing the rebate and
because of its distorting and inequitable effects on the budget in
general, which were not justified in that context. In the final
agreement reached in December 2005, and under pressure mainly from
Spain and France, a commitment was obtained to reduce the British
rebate and it was agreed that Britain would take part in
financing the costs of EU enlargement.
As we have already said, in recent years Spain’s contributions
to EU coffers have grown at a rate higher than the European average.
So with the goal of avoiding unfair contribution levels and improving
the transparency of EU financing, some analysts have proposed having
countries’ contributions converge at a level of around 0.8% of
GNI.
As for how contributions are assigned among the different member
states, currently the system produces a situation that is not
equitable.
Some members, such as Spain, whose per capita GDP barely reaches the EU
average, still make contributions to the EU budget that are much larger
(in terms of GDP) than those of other member states, such as Britain,
which far surpass the average levels of prosperity in the EU.
In light of this situation, and from Spain’s point of view in
terms of its contribution to the review process, if no prior debate
is carried out on the current fundamentals of the system of inputs
and their fairness, it will be hard to reach agreements on a revision
of spending policies.
Graph 3. Financing of the budget per member state (% GDP)

Source: European Commission (2008).
Spending
Meanwhile, with regard to EU spending, one must keep in mind that
some member states are exerting pressure to nationalise certain
policies. This could lead to a tendency in which the Commission
presents major budgetary reform proposals, and in particular the
Common Agricultural Policy. One must not forget that this policy and
the Cohesion Policy have benefited Spain tremendously so far. But it
is also true that the Spanish position is focusing on the future.
The second goal included in the Spanish position is to achieve
maximum quality in spending and prepare the EU for emerging
challenges such as immigration, demographic change and climate
change, which are mentioned in the Commission report.
In any case, Spain’s traditional commitment to the principle of
cohesion as an expression of the principle of EU solidarity will
continue (Navarro & Viguera, 2005). According to the Spanish
government, ‘[…] cohesion policy should continue to play
a relevant role in the future of EU policies […]’, both to contribute to EU economic growth policies and aid
less-developed regions as well as to contribute to the development of
geographic areas and cities which have distinctly specific
characteristics within the EU, such as ultra-peripheral regions,[] rural areas with low population density and cities that lie on
borders.
In order to support the process of convergence, in the last round of
negotiations there was agreement on continuing transitional measures
(phasing-out) for regions that will not be eligible in the next
financial framework and on a boost in resources for cross-border
cooperation.
With regard to the budgetary revision, the Spanish contribution also
mentions other formulas for achieving cohesion, in such areas as
technology and the environment. Thus, the future cohesion policy must
support the Lisbon process and within this process be based on
investment in R+D+I because, if the existing technological gaps within the EU are not
eliminated the bloc cannot meet the Lisbon objectives.[]
Furthermore, as far as regional policy is concerned, Spain’s
position as the second-largest recipient of funds will change
starting in 2014, since the convergence goal will gradually be
abandoned and the phasing out of the Cohesion Fund will be completed.
Therefore, the direction of the future cohesion policy must encompass
all EU territory and centre on the priorities set in Lisbon.
The persistence of major regional and/or national imbalances marks a
major obstacle for the overall prosperity of the EU and affects the
Lisbon Strategy goals of transforming the EU into a competitive
economic power. Cohesion and economic competitiveness are more and
more closely linked and generate positive synergies.
The novelty of Spain’s position lies in the fact that it no
longer stresses just cohesion, but also EU policy on R+D. The need to
redirect spending toward the Lisbon goals makes it clear that this is
not just an exercise at the regional level, but also the national one
and especially at the level of the EU as a whole. In a bloc now made
up of 27 member states, what is emerging is a group of countries
which, although they are near average EU levels of prosperity and
well-being, are still far from the most advanced levels of
development in technology and innovation. Also, at a domestic level
they are making a major effort to develop their R+D+I capability and
link it with the technological programmes of the EU. For this reason,
in the revision of the budget it will also be necessary to address a
revision the EU R+D+I policies currently included in category 1 a,
which are the ones which have a direct effect on the competitiveness
of the EU and its member states.
In line with this, under the term ‘European added value’,
one refers not only to goals stemming from the EU treaty, such as
social and economic cohesion, but also policies that have positive
synergies and benefit a large number of countries. These new policies
could be the challenge and the key point in the future budget reform,
given the fact that Spain –in terms of immigration and energy
as well as climate and demographic change– is a country that is
especially affected. In this sense, many Spanish regions will
increasingly have to confront possible effects of climate change,
which will cause serious problems for farming, fishing and tourism,
such as heat waves, drought and forest fires. According to the fourth
report on economic and social cohesion, four European countries (Cypress, Malta, Italy and Spain) currently
suffer from water shortages in the sense that the amount they use
surpasses 20% of their available reserves, and global warming will
reduce precipitation and raise temperatures in those countries,
intensifying problems of scare water.
As we have stated earlier, Spain is the second
large recipient of funds from the EU’s Common Agricultural
Policy. The resources that come from this policy exceed those
stemming from structural funds and cohesion in the period 2007-2013.
For this reason it is to be expected that the Spanish government will
look very closely at any initiative that seeks to reform this policy.
Government officials have already said that changes in the
common agriculture policy’s ‘medical check-up’ must
be ‘[….] minimal, as this is not the time for major
reforms […]’.
In this spirit, and in contrast with the aforementioned pressure to
renationalise the CAP, the Spanish stance features a series of
elements to keep in mind: the idea of food independence, food
security and the multi-functional nature of the CAP should not be
forgotten in the framework of the debates that are conducted.
At the same time, so far the CAP has guaranteed free circulation
within the internal market and an EU system of management and control of aid, which ensures food quality.
As we have stated, along with interest in the traditional categories
of the European budget, there are also preferences in policies which
until now did not have enough resources. As part of its drive for a
common immigration policy, Spain wants the EU to have an appropriate
budget that features financing for the Frontex agency, tasked with
monitoring the bloc’s external borders.
The priority that the Spanish government places on development aid
could also affect the budgetary review process. In 2004, Spain
established an ambitious five-year timetable for achieving the goal
of earmarking 0.5% of GDP for humanitarian aid in 2008 and thanks to
this ‘road map’ it was the country that most increased
its development aid spending in 2007. This commitment can be
considered as exemplary for the rest of the bloc’s countries
and an incentive to strengthen the role of the EU in this area.
Graph 4. Budget balance per member state (% GDP)

Source: European Commission (2008).
Spain’s Negotiating Strategy
The term ‘negotiating strategy’ is generally understood
to refer to how a party approaches problems and conflicts and its
interaction with other parties when it comes to resolving them. In
that sense, a strategy consists of a specific order of possible kinds
of behaviour, which at the same time carry with them different
tactics. From a variety of studies
one can extract different strategies that can be summarised mainly in
two categories. First, there is negotiating behaviour with a high
potential for conflict and based on demands that are ambitious and not
very realistic, and on retaining benefits that have already been
acquired. Secondly, there is a consensus-seeking behaviour centred on
the common interest and characterised by flexible positions.
Both strategies are implemented with the following tactics:
-
Coalitions maintained or established during the negotiating process
(heterogeneous or homogeneous, either established in ad hoc fashion
for a specific area of negotiation or traditional, coalitions meant
to defend or strengthen new initiatives).
-
Initiatives presented during the negotiations (unilateral or
multilateral; consensus-based or polarising, spontaneous or done in reaction to another initiative).
-
Mediating skills and ability to be flexible in one’s position.
-
Reactions to compromises (consensus-based or based on threats and
pressure).
-
Degree and purpose of expression
of national interests (before Parliament, in elections or in public
debate) and difference between how this is expressed at the European
level and the national level (national interests or EU priorities).
-
Timing and focus of expression
of threats (at the outset or end of the negotiations, directed at a
specific country or across the board).
There are different variables which can determine the choice of a
specific strategy, such as the size of the State, its relative weight
in the EU economy, whether it has domestic conflicts, public opinion
on European integration and its administrative structure. Other
factors are the relationship between a State and the EU’s
policies on distribution (for instance, the relationship between
France and the budget/CAP) and the net outcome it derives from the EU
budget, as well as the degree of institutionalisation of the
negotiating context. At the same time, negotiating strategies can
change in intensity during the process and among the different levels
of the negotiation. While some variables can be considered static,
such as the size of a country, others can change and in turn modify a
State’s strategy. And this, in turn, has repercussions on the relationships among the parties who are negotiating.
As for Spain, we have said that the economic situation and the way in
which the country benefits from EU distribution policies, especially
the cohesion policy, have changed recently. For this reason Spain
holds a key position in the current discussions on revising the EU
budget. Spain’s strategy in the debate on this reform, and,
with even more emphasis, in the negotiations on the next financial
framework, should therefore adapt both to the new Spanish economic
situation in comparison with other countries and the possible effects
of the challenges mentioned in the Commission report or other global
problems or initiatives that might arise over the course of the debate.
The change in Spain’s perception of the EU and vice-versa, and
the change in the country’s relative weight within the Union,
must necessarily be reflected in an evolution of Spain’s
position, one that moves toward initiatives which can benefit the country, both directly and indirectly.
These are not novel conclusions. The strategy that was followed in
the negotiations on the financial prospect for 2007-13 established
the foundations for this new reality. In this sense, the negotiating
strategy does not require an abrupt change, but rather can be based on continuing the previous line of argument.
In this context, the Spanish position with regard to revising the
budget retains the strategies employed so far:
-
First, defence of the principle of fairness in revenues and the
principle of quality in expenditures, highlighting the importance of
technological progress and policies linked to the Lisbon Strategy.
-
Secondly, parallel discussions of policies (including the CAP) and
resources intrinsic to the EU budget (for instance, the ‘British rebate’).
Spain’s negotiating style is considered exemplary, both because
of its efficient internal coordination and the external
representation of its negotiating position and its skill in managing
coalitions. As for internal coordination, both the strategy and
preferences of the Spanish government should continue to be based on
a broad political consensus supported by Parliament and the country’s
semi-autonomous regions. It is a particularly good idea for the
government to maintain close dialogue with said regions as it looks
ahead to the future negotiations. This is because the relationship
between regions which will continue to benefit from the ‘traditional’
EU political structure and those which will benefit from the new
objectives will change its emphasis in favour of the latter.
As for coalitions, Spain can rely on the work it did within the
so-called group of friends of cohesion. This was established through
a Spanish-Greek-Portuguese initiative during the negotiations on the
financial perspectives for 2007-13. Spain might also find occasional
allies among the net contributors, and not just because of their
opposition to the British rebate but also with regard to possible
proposals to limit national contributions. Finally, Spain can enhance
its ties with those new member states which are at an intermediate
level of technological development, on a path to technological excellence and consider this realm to be a priority.
At the negotiating table, it is not necessary to resort to a veto in
order to defend policies which are especially beneficial. Rather, the
intermediate position can transform into a decisive weight for one
group or another, and be rewarded with support on issues that are of greater importance for Spain.
However, in the debate on revising the EU budget and in negotiations
on the next financial framework, it can in general be useful for each
country to avoid making demands which might be ‘exceptions’
or interpreted as such. It is more useful to base arguments on
principles and objectives that are mutual and recognised. In this
case, we would be talking about an approach that differs from the
so-called ‘Spanish problem’ strategy that was used in
previous negotiations. It involved arguing that Spain was a special
case that required special treatment (Torreblanca, 2005) but which
stemmed from similar principles, as we have stated.
For all of these reasons, in the future negotiations Spain can
consider using two strategies. They are not mutually exclusive in
their application but rather complementary: (1) the moderate strategy and (2) the reform-minded strategy.
The Moderate Strategy
A strategy that might be called ‘moderate’ would be based
mainly on arguments developed during the 2007-13 financial prospect
negotiations, with prudent, original initiatives launched from
traditional coalitions, such as a group equivalent to that of the friends of cohesion.
The arguments could be developed with a special focus on the
principles of quality and efficiency in expenditure, the
reinterpretation and defence of traditional EU objectives with a
legal foundation in the Treaty, such as economic and social cohesion, and in the defence of the status quo of the CAP.
With the existing categories of spending, the priority would be a
reform of the criteria used in their application. Such a reform would
offer leeway for extending existing policies to new areas, such as
demographic change, migration and narrowing the technological gap.
The reform of criteria for applying policies could also be carried
out with respect to the Solidarity Fund and the Globalisation
Adjustment Fund, with the goal of adapting them to those new and especially relevant situations.
Furthermore, this ‘moderate strategy’ would be centred on
making real the new policies called for in the Lisbon Treaty, such as
energy efficiency and security, inter-connection of energy grids and
the fight against global warming, all through the categories spelled out in the budget.
This strategy would aim for fairness in contributions and thus seek
to eliminate the ‘British rebate’ and other discounts and
forms of compensation. This would mark a considerable improvement of
fairness and transparency of the system and thus the financial
balance of most member states. To this one would add a limited
modification on the revenue side, leaving open the debate on the future European tax.
On the basis of these arguments and with these possible goals,
depending on the issue at stake Spain’s position could easily
fit in between those of the net contributors (it will be one of them
as of 2014) and the net beneficiaries. This strategy would mean a
gradual adaptation to the new situation in the EU financial context.
However, one could argue that Spain might miss out on a unique
opportunity to nuance its role in key situation in European integration.
The Renewal Strategy
The other approach to budgetary reform might be termed a
reform-minded ‘renewal strategy’ that offers
opportunities over the long term, although also the possibility of a
worsening of the net budgetary balance over the short term.
Changes in the criteria for applying the cohesion policy might
improve the net balance. But this would not be enough to take it to a
positive net balance starting in 2014, because the basic principle on
which countries or regions are chosen is per capita wealth or income.
Since Spain is becoming a rich country in the EU-27, the bloc could consider taking other factors into account, such as
level of technological development, depopulation, desertification of territory, etc.
In this sense, Spain could intervene actively in the current
discussion of both expenditure and contributions, not just with an
eye to the next financial framework but also in terms of developing a
budget policy based on the principles of sufficiency, solidarity and
European added value. During debate on the term ‘European added
value’, it would be a good idea to promote a definition that is
broad and inclusive. This includes those actions or policies which
can produce an effect that a country by itself could not achieve, and
whose results would be very positive, such as in the fight against
illegal immigration and development aid.
Also with respect to contributions, there must be support for
initiatives for the European budget to have not just fiscal effects
but also regulatory effects that have political consequences. One
example might be the European Parliament’s proposal to impose a
tax on CO2 emissions. Other policies such as the EU’s enhanced
role in the world, especially with regard to development aid, should also be given high priority.
This ‘renewal strategy’ would use the status quo to
launch new initiatives and position itself in a ‘new role’
in the EU, especially in the area of R+D+I.
In this area, the Spanish position is especially innovative in that
it addresses the needs of that member states which are making a major
effort, at the national and EU level, to promote R+D+I and require
specific tools or goals that encourage this drive for excellence. One
must not forget that, with the current rules, they will have a hard
time gaining access to the R+D Framework Programme if they do not
achieve the level of excellence of companies in member states that
are more developed technologically. This can lead to an important gap
between advanced and less-advanced states in terms of technological
development and innovation, as these factors are key to competing in
globalised environment. At the same time, this gap can widen in a
context in which the budgetary framework has doubled its resources in this area.
From the Spanish point of view, and in this ‘renewal strategy’,
debate is beginning on how the revision of EU policies can include
specific mechanisms or goals for this intermediate group of states,
with the objective of facilitating their technological convergence
toward higher standards. Attention should be focused on aspects of
the ‘knowledge-based economy’ as a whole, with a systemic
focus and deepening in the spread of innovation and European research.
Meanwhile, in this strategic framework, it is necessary to take a
clear position on the EU’s political priorities and new
challenges, especially with regard to environmental policies and
climate change, trans-European infrastructure networks and energy, and policies governing migratory flows.
Conclusions
We face a new phase in the process of discussing the revision of the
EU budget and policies. The issue will reach the European Council in
2009 and will thus be discussed by member states. The idea is to
reach certain conclusions which must be taken into account prior to
the presentation of the new, post-2013 financial framework proposal, which will probably take place in 2011.
After a first analysis of the possible preferences of the Spanish
government and the possible strategies it might pursue –both in
the debate on the revision of the budget and in negotiations on the
next financial framework– one can conclude that Spain is on the
verge of entering a new era in its relations with the EU. The purpose
of this analysis was to outline the impact of this new relationship
on said reform and ensuing negotiations. In this sense, we have
argued that with the change in Spain’s situation within the EU,
its negotiating strategy might change, while maintaining the basic
principles it has already embraced. We have suggested two strategies
for the short and medium term, in which the key question is this: how
will it be possible to find an intermediate position that allows a
transition from being a net recipient country to one that is a net
contributor, and from a ‘convergence’ country to one of ‘competitiveness’?
In summation, and according to the Spanish position that has been
made public, it is to be expected that for now Spain will try to keep
all of its options open, both in terms of contributions and expenditure in the EU budget.
Despite this being the overall position at the outset, one can
already detect some key features of Spain's preferences, which are
these: (1) a position against the British rebate and discounts on the
contributions side; (2) opposition to a major reform of the CAP; and
(3) the goal of renewing EU policy on R+D+I and modernising the
cohesion policy. In this new approach, Spain does not question the
idea of solidarity. Rather, it demands financing that is fair and
stable for the European project in line with efforts to achieve
transparency and efficiency in the EU budgetary system.
Cristina Serrano
Deputy Director General for EU Economic and Financial Issues, Spanish Foreign Ministry
Mario Kölling
Researcher at the Department of Public Law at the University of Zaragoza
Annex
Map I. Growth of GDP per head, employment and labour productivity, 1995-2004

Source: European Commission (2007), Growing regions, Growing Europe, Fourth Report on Economic and Social Cohesion, http://ec.europa.eu/regional_policy/sources/docoffic/official/reports/cohesion4/index_en.htm.
Map II. Research and Development indicators, 2004

Source: European Commission (2007), Growing regions, Growing Europe, Fourth Report on Economic and Social Cohesion, http://ec.europa.eu/regional_policy/sources/docoffic/official/reports/cohesion4/index_en.htm.
Map III. Lisbon Economic Indicators, 2004-2005

Source: European Commission (2007), Growing regions, Growing Europe, Fourth Report on Economic and Social Cohesion, http://ec.europa.eu/regional_policy/sources/docoffic/official/reports/cohesion4/index_en.htm.
Mapa IV. Regional Innovation Performance Index, 2002-2003

Source: European Commission (2007), Growing regions, Growing Europe, Fourth Report on Economic and Social Cohesion , http://ec.europa.eu/regional_policy/sources/docoffic/official/reports/cohesion4/index_en.htm.
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