STRASBOURG, FRANCE, MAY 17, SPA -- THE EUROPEAN PARLIAMENT APPROVEDTHE EU’S MULTIBILLION EURO BUDGET FOR 2007-2013 ONWEDNESDAY, ENDING MONTHS OF WRANGLING WITH GOVERNMENTS ANDAVERTING A FUNDING CRISIS, REPORTED AP. THE ASSEMBLY VOTED BY A LARGE MAJORITY IN FAVOR OF THE¤864.4 BILLION (US$1.108 TRILLION) PACKAGE, MEANING MEMBERGOVERNMENTS CAN START ALLOCATING MONEY TO EU-FUNDEDPROJECTS FOR THE SEVEN-YEAR PERIOD. MEMBER STATES AGREED LAST MONTH TO ADD AN EXTRA ¤2 BILLION(US$2.4 BILLION) TO THE ¤862.4 BILLION (US$1.04 TRILLION)BUDGET DRAFTED IN DECEMBER, AFTER EU LAWMAKERS WITHDREWDEMANDS FOR A ¤12 BILLION (US$14.5 BILLION) INCREASE. EUROPEAN PARLIAMENT PRESIDENT JOSEP BORRELL SAID THEWRANGLING RESULTED IN A BUDGET THAT WAS FAR FROM IDEAL. «THIS LED TO AN AGREEMENT WHICH FOR MANY MEMBERS ISUNSATISFACTORY,» BORRELL TOLD THE ASSEMBLY AFTER THE VOTE.«IT’S A BARE MINIMUM, AND IT DOES AT LEAST ALLOW THE EU TOCONTINUE FUNCTIONING.» HE SAID THE NEW SPENDING PLANS MEANT IT WOULD COST EUCITIZENS JUST 26 EURO CENTS PER DAY TO RUN THE EU. WITH THE NEW BUDGET IN PLACE, «WE WILL NOW BE ABLE TOPROPERLY FINANCE THE ABSORPTION OF NEW MEMBER STATES,»SAID AUSTRIAN CHANCELLOR WOLFGANG SCHUESSEL, WHOSE COUNTRYHOLDS THE EU PRESIDENCY. «WE CAN NOW SPEND MONEY ONPRACTICAL PROBLEMS THAT WOULD WIN BACK THE TRUST OF THEPUBLIC.» THE EU ASSEMBLY, WHICH CAN VETO THE BUDGET BUT IS NOTDIRECTLY INVOLVED IN STRUCTURING IT, HAD BEEN WITHHOLDINGITS APPROVAL FOR THE PACKAGE, DEMANDING A SUBSTANTIALINCREASE IN FUNDING FOR AREAS SUCH AS EDUCATION, RESEARCHAND ENERGY, TRANSPORT AND TELECOMMUNICATIONS NETWORKS. AS PART OF THE DEAL REACHED WITH THE EU GOVERNMENTS LASTMONTH, THE EU WILL ALSO RAISE ITS EMERGENCY RESERVE,INCLUDING FUNDS FOR FLOODS AND OTHER EMERGENCY SITUATIONS,BY ¤1.5 BILLION (US$1.8 BILLION), AND ADD ¤500 MILLION(US$611 MILLION) FOR PENSIONS OF EU CIVIL SERVANTS ANDOTHER ADMINISTRATIVE MATTERS. EU LEADERS ALSO AGREED TO REVIEW THE BUDGET IN 2008 OR2009, WHICH COULD LEAD TO CUTS IN THE EU AGRICULTURALSUBSIDIES _ RELEASING MONEY FOR OTHER AREAS TO BOOSTCOMPETITIVENESS. IF THE PARLIAMENT HAD FAILED TO APPROVE THE LONG-TERMFINANCIAL PACKAGE, THE EU WOULD HAVE TO OPERATE ON THEBASIS OF ANNUAL BUDGETS, MEANING REGULAR QUARRELS BETWEENGOVERNMENTS AND LESS MONEY FOR THE 10 MEMBERS THAT JOINEDIN 2004 SINCE THE LARGER PACKAGE EARMARKED INCREASED AIDFOR THEM. THE BUDGET WAS THE SUBJECT OF MORE THAN A YEAR OF BITTERFIGHTS BETWEEN EU GOVERNMENTS, WITH BRITAIN CLASHING WITHITS PARTNERS, NOTABLY FRANCE, OVER FARM SPENDING THAT STILLEATS UP AT LEAST 40 PERCENT OF THE EU’S ANNUAL BUDGETDESPITE SEVERAL REFORMS IN THE PAST TWO DECADES.--SPA www.spa.gov.sa/361746