The European Parliament gave initial backing to advocates of higher spending over the objections of the biggest member states when it launched a debate on the European Union's (EU) 2007-2013 budget yesterday.

A draft report on the next long-term budget, on which EU leaders are due to agree in June, said proposals to boost spending from the European Commission were a good starting point for the negotiations.

The Commission has proposed increasing expenditure to 1.14 per cent of gross national income in 2007-2013, or about €930 million, from the current 1 per cent, mainly to help finance the EU's enlargement into eastern Europe last May.

The six biggest contributors led by Britain, Germany and France want the budget capped at 1 per cent, or €815 million euros, saying spending cannot rise at a time when many countries are struggling to tame national budget deficits.

"The Commission's proposals ... are an acceptable basis for analysis and future negotiations," said the report drafted by German Christian Democrat Reimer Boege.

The EU must continue to provide adequate funds to aid poor regions, support farmers, finance scientific research, protect the environment and assist developing countries, it argued.

The 25 EU governments have the final say by unanimity.

But a refusal by parliament to endorse their decision would force member states to renegotiate spending each year, plunging the bloc into endless horse-trading and threatening the timely allocation of funds for vital long-term projects.

"The draft report shows that parliament will be an ally of those countries which back a bigger budget," said Janusz Lewandowski, chief of the budget committee. - (Reuters)