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European Commission President Jose Manuel Barroso was cheered in the European Parliament on Tuesday (23 November) when he outlined plans to publish an official proposal on EU self-funding before the end of June 2011. A fresh draft of next year's budget is also expected before 1 December.

Parliament has said debate on the controversial 'own resources' issue is a key demand in the ongoing battle over next year's annual EU budget, but France, Germany and European Council President Herman Van Rompuy have all indicated they oppose the idea of an EU tax. "We will use our right of initiative to put forward formal proposals as to own resources before the end of next June," Mr Barroso told MEPs in the Strasbourg plenary chamber. "The proposals ... will make large endeavours to achieving a consensus in the future. We're open to any ideas," he added.

"I am against the introduction of an EU tax," German Chancellor Angela Merkel said earlier this month. "I do not think that redesigning the way the EU get its revenue is a top priority," Mr Van Rompuy said a week later. Reacting to Mr Barroso's announcement, non-attached UK MEP Diane Dodds called on British Prime Minister David Cameron to clearly state that proposals for an EU tax would trigger a referendum in the country.

‘Adoption of the Resolution on strategy of the EU enlargement by the European Parliament is an exceptionally positive event for Serbia. Still, future decisions by the EU ministers should not be prejudiced’, Bozidar Djelic, Serbia Deputy Prime Minister for European integration said yesterday. This moderate reaction to decision by the European Parliament to accept as an obligation the EU enlargement onto the West Balkans and to request from the EU Council urgent unblocking of the transient trade agreement between Serbia and the EU is only on the surface while under it there is a hectic and increasingly successful activity by Serbian diplomacy leading towards filing of application for the EU membership even as early as in 2014. The decision over unblocking of the SAA is to be made at the EU summit scheduled for December 10. Until then Serbian officials have to do a lot of work. Thus, within diplomatic initiative in Brussels, Serbia President shall attend the meeting of ministers deciding on visa suspension on November 30. After that the Foreign Minister Vuk Jeremic is to meet with his EU counterparts at the OSCE meeting in Athens on December 2. The USA Secretary of State Hilary Clinton is expected to come to the meeting. She recently openly supported unblocking of the SAA with Serbia. A day earlier the Chief prosecutor of the Hague Tribunal Serge Brammertz shall present to the UN Security Council the most positive report ever on cooperation by Serbia with the Hague Tribunal. Minister Jeremic shall visit Brussels on December 7 and 8 when the EU ministers are to decide on the SAA unblocking. He shall speak at the Summit on December 10. A day before the summit Deputy Premier Djelic is to meet with the Foreign Minister of Spain, a chairing country and with the EU enlargement commissioner. Serbia President Boris Tadic said that ‘Serbia shall file application for membership after unblocking of the transient trade agreement’. According to his words the time for candidacy shall come when it is clear that our application is going to be accepted.

The Polish junior minister for EU affairs, Mikolaj Dowgielewicz, has promised that upcoming elections will not disrupt Poland's EU chairmanship and defended Hungary over its controversial media law. Speaking to EUobserver ahead of a visit by EU Council head Herman Van Rompuy to Warsaw on Monday (17 January), Mr Dowgielewicz predicted the election will take place in the second half of October - slap-bang in the middle of Poland's EU presidency - but said the vote will be separated from its EU activities by a "Chinese wall".

The latest poll, by GfK Polonia in December, indicated that centre-right Prime Minister Donald Tusk will sail through to a second term on 54 percent, leaving behind the main opposition party, Law and Justice, on 26 percent. Even if the situation changes drastically, Law and Justice' bull-in-a-china-shop boss, Jaroslaw Kaczynski, is unlikely to turn up at any EU summits in 2011. "The presidency has been set up in such a way as to allow the old government to continue running things until late December, until the last session of the European Parliament, no matter what happens," Mr Dowgielewicz noted.

The EU's three largest member states - Germany, France and the UK - are set to publish a text on Saturday (18 December), calling for spending restraint in the bloc's long-term financial framework (post 2013). Initiated by British Prime Minister David Cameron, the letter will call for a freeze in the long-term spending plan, excluding inflation, and also seek to rein in the bloc's 2012 and 2013 annual budgets.

The move puts the group of large member states on a direct collision course with the Brussels-based EU institutions, already battered after their call for a six percent rise in next year's EU budget was cut in half by national capitals. With the commission not set to publish formal proposals on the multi-annual financial framework until June 2011, the EU institution may also perceive London's latest initiative as a move to undermine its right of initiative. Still undecided, the framework's period is likely to cover 2014-2020. It is then broken down into annual budgets. Poland and other eastern countries may also be horrified by the attempt to curb future EU payments of which newer member states are large recipients. But other EU members are also set to sign the austerity-letter, with Austria, Italy and Finland among the names suggested by diplomats.

European Commission President Jose Manuel Barroso sought to downplay the letter's significance. "We know different groups of member states sometimes try to position themselves," he said. "What is important in the end is the commission's proposal that is being put forward [next June], and then the discussions on the basis of that proposal." European Council President Herman Van Rompuy was also phlegmatic. "If there are letters, we are very polite people, we read our letters we receive," he said.

Bulgaria and Romania's accession to the Schengen area and Croatia membership of the European Union are among the top priorities of the incoming Hungarian EU Presidency, government officials told EurActiv in Budapest ahead of the executive's official visit to the European Commission on Wednesday (17 November).

Hungary will assume the EU presidency for their first time in January 2011. Budapest is keen to do well, especially on EU enlargement, which could impact upon the sizeable Hungarian minorities who live beyond national borders.

The enlargement of the Schengen area to include Romania and Bulgaria is on top of the presidency's agenda. However, the admission date of March 2011 "is likely to be delayed," admitted a Hungarian government official. Nevertheless, the presidency will work to help facilitate the accession of both Southern Balkan countries to the area of free movement of citizens within the EU.

Although Belgium is among the most cautious in the European Union when it comes to enlargement, there is a good chance that its forthcoming EU Presidency will be particularly productive in this policy area. At their presentation of the upcoming Belgian presidency's priorities last Friday, Yves Leterme, Belgium's caretaker prime minister and its foreign minister, Steven Vanackere, sounded much like their colleagues from the Netherlands - and not just because they spoke Dutch. The Belgian approach to enlargement is similar to the stance in the Hague: no promises, no dates, just "strict and fair" rules.

The next six months could mark important progress for the Western Balkan countries despite Belgium's cautious line. Croatia could close all but one of the negotiation chapters. Macedonia is close to getting a date for the opening of accession negotiations with the EU. Montenegro can count on a positive "avis" (opinion) from the European Commission for its candidate status. The Serbian application could be forwarded to the EU commission for an opinion on Serbia's readiness to become a candidate as well. Kosovo might receive some kind of a roadmap for its Stabilisation and Association Agreement (SAA) with the EU. Bosnia-Herzegovina and Albania can hope for visa liberalisation before the end of the year. Croatia is well-placed to close all its negotiation chapters, with the exception of the famous No. 23 on Judiciary and Fundamental Rights, which will remain to be concluded during the Hungarian Presidency in the first half of 2011. Still, problems could emerge with othe chapters, for example competition. Macedonia is close to finding a win-win solution to its name dispute with Greece. Talking to WAZ.EUobserver, EU diplomats in Brussels expressed cautious optimism that the name problem could be solved in the next months. This would allow the EU finally to set the date that Skopje has been waiting for since 2005 - for formal negotiations to start on Macedonia's entry into the EU.