THE European Commission unveiled plans yesterday to triple              spending on research and development, transport and education in an              effort to create jobs and revitalise the EU?s struggling economy.              
The ?132.7 billion (£90.8 billion) pitch to raise competitiveness              is aimed at making the Commission?s ?1,025 billion spending plans              for the years 2007 to 2013 more palatable to member governments,              many of which have attacked them as too costly. The Commission              insists that the EU must sharply increase spending on R&D to              close the technology gap with America and Japan.              
The EU budget also includes proposals to nearly quadruple              spending on ?culture, youth media and citizenship? to ?2.5 billion              over the seven-year period. This includes ?207 million for a              ?citizens for Europe? programme to ?foster co-operation between              citizens and organisations from different countries who will meet to              develop their own ideas and act in a European environment?.              
The EU also intends to more than triple spending on ?freedom,              security and justice? to ?8.3 billion. The plans include a new EU              border management agency, programmes to help illegal immigrants ?              such as ?counselling for unsuccessful asylum seekers? ? and a new              fundamental rights agency.              
Spending on health and consumer protection will be nearly tripled              to ?1.8 billion. The Commission is desperate to use its budget to              show that it is no longer focused on the post-war problem of              boosting agriculture but is helping to make Europe the world?s              leading ?knowledge-based? economy.              
Although total spending on agricultural subsidies, given through              the Common Agricultural Policy, will decrease by 3 per cent, this              remains the single biggest area of expenditure, totalling ?301              billion by 2013. However, because of the overall increase in the              budget, agricultural spending will drop from about half the EU              budget to less than a third.              
Dalia Grybauskaite, the Budget Commissioner, said: ?Today?s              proposals clearly reflect a shift towards growth and employment with              a focus on knowledge-based activities such as research and              innovation. The proposals offer a real added value for EU citizens              and represent a good use of taxpayers? money.?              
José Manuel Barroso, President of the Commission, said: ?The              Commission?s blueprint for investing in Europe?s future is complete.              Europe must have the means to match its ambitions.?              
The spending plans are provisional and show the Commission?s              ambitions as it heads into negotiations with EU member states.              Overall, it has asked for a budget of 1.26 per cent of EU GDP, but              six member states, including the UK, have insisted that they don?t              want to pay any more than 1 per cent of GDP into the budget. The              Commission insists that it needs more money to turn the EU?s lofty              goals ? more competitiveness, greater research, better education,              more security and a bigger role in the world ? into reality.              
The budget negotiations, which are meant to be finalised by the              heads of state in June, are particularly sensitive for the UK, which              is staunchly defending its budget rebate, secured in 1984 by              Margaret (Baroness) Thatcher and worth about £4 billion a year.
             RISE OF EUROPEAN SPENDING              
EU spending plans for 2007-13 (and change over              period)              
Research ... ?67.8bn (166%) 
Transport and energy ... ?20.7bn              (367%) 
Education and training ... ?12bn (268%) 
Protection of              environment ... ?2.1bn (37%) 
Regional development ... ?264 bn              (40%) 
Agriculture ... ?301bn (-3%) 
Rural development ...              ?88.8bn (25%) 
Freedom, security and justice ... ?8.3bn (228%)              
Health and consumer ... ?1.8bn (187%) 
Culture, youth, media              and citizenship ... ?2.5bn (267%) 
Total (inc other) ...              ?1,025bn
 
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