The issue of the financing of the operational expenditure for actions taken under the Common Foreign and Security Policy — CFSP — was discussed by the Council on 21 February 1994. Under the Maastricht Treaty such expenditure may be financed either from Community sources or in whole or in part by national contributions of member states.
The Presidency proposal at that Council outlined three possible options as to how operational expenditure for actions under the CFSP might be financed: (i) from the Commission section of the Community budget — this option found favour with most of the member states, including Ireland; (ii) from the Council section of the Community budget — Denmark favoured this option; and (iii) from contributions by member states — the UK favoured this option.
This matter has been the subject of further discussion, most recently at the May General Affairs Council, on the basis of a paper presented by the Greek Presidency. The Council also discussed the technical details that would apply if expenditure were to be financed by national contributions of member states.
All member states have indicated their willingness to accept some form of Community financing for CFSP actions. This was on the understanding that the Council will retain responsibility for decision-making under the CFSP, as provided for in the Union Treaty. It was agreed that negotiations should take place with the European Parliament to make the necessary arrangements.