Despite the release of positive confidence data for the Eurozone the Euro was unable to make gains as investors digested news that the EU will require up to €3.9 billion (£3.5 billion) from its member states if it is to pay its bills for 2013.
The demand for extra funds comes just months after MEPs voted to provide an extra €7.3 billion onto the already controversial original budget. In a statement released on the 25th of September, EU budget Commissioner Janusz Lewandowski said that figures support the European Commission’s demand for extra funds. Lawandowski said, “We need additional funds to meet our legal obligations.”
Mr Lewandowski said the EU had no choice but to ask for extra cash, as more infrastructure projects had been completed than expected. He added that it was clear earlier in the year that the EU would need around £10 billion extra, but member states had only been willing to pay £6.4 billion at the time.
“Time and again … I have warned that the voted EU budgets are well below the legitimate claims of EU beneficiaries,” he said, adding that the claims by governments “clearly show that we need additional funds to meet our legal obligations.”
If the demand for further cash is approved by MEPs and ministers, the revised EU budget for 2013 would be worth €144.5 billion.
MEP Marta Andreasen former European Commission chief accountant said; “ The EU institutions throw taxpayers cash around like confetti.”
The Euro was little moved after data showed that economic confidence in the Eurozone beat economist forecasts in September.
According to the European Commission, executive and consumer sentiment rose for a fifth consecutive month, rising from a revised figure of 95.3 to 96.9 in August. Economists had been expecting a rise to 96. Both industrial and services confidence improved with them rising to -6.7 and -3.3 respectively.
The latest German Consumer Price Index data is set for release later in the session, if that data comes in better-than-expected than the Euro could shake off the doubts caused by the budget news. Other factors such as US data releases are also likely to have an impact as well.
Euro (EUR) Exchange Rates
As of 11:35 am
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3498 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8396<
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4503 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6325 >
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3941 >