Brussels, 21/10/2010 (Agence Europe) - Amending letter No. 3 to the draft budget for the 2011 tax year, adopted on Thursday 21 October by the European Commission, showed a fall of €346 million in agricultural funding, in comparison to the initial proposal at the end of last April (when the Commission proposal was adopted on the draft EU budget for the 2011 tax year). In September, the Commission received its first indication of the 2010 production (harvests) level, which serves as a basis for all reliable estimates for 2011 budgetary requirements.
Funding for section 2 (“management of natural resources”) in the EU budget is estimated to be €59.139 billion, which leaves a margin of €1.19 billion in credit appropriations under the corresponding ceiling of the financial framework.
Credit appropriations for agricultural spending rose to €43,401 billion, representing a fall of €346 million compared to the draft 2011 budget. This fall is mainly due to the receipt of payments in 2010, which were much higher than expected (+€229 million), in addition to the favourable situation on the agricultural markets. Payment appropriations for agriculture were reduced by the same amount to a total of €43.311 billion.
Cereals. For intervention measures, the amending letter proposes a reduction of €108 million, compared to the draft budget 2011, given a more positive evolution in EU public stocks. The Commission expects that almost all of the volumes currently in public storage will be freely absorbed on the markets or as part of the programme to help the poor.
Milk. 2011 draft budget estimates had already planned for continued positive market developments. Nonetheless, updated forecasts suggest a more radical reduction than expected in public butter and skimmed milk powder stocks. It has been proposed that funding for skimmed milk powder, butter and cream intervention measures be reduced by €11 million and €3 million respectively in relation to the initial Commission project for 2011.
Fruit and vegetables. Proposals have been made to reduce budgetary funding requested for producer organisation operational funds by €226 million.
Bovine meat. An increase of €11 million has been proposed for funding the bovine meat sector. This proposal is mainly due to the fact that following the most recent figures on export licences awarded, spending on meat export refunds (+€8 million) and live animals (+€2 million) are on the increase.
Fisheries. With regard to international fisheries agreements, the amending letter proposes a very slight adjustment of €1 million in credit appropriations (revised estimates for additional catches).
This amending letter is expected to be adopted by the Council and the Parliament, as part of the negotiations on the draft 2011 budget. (L.C./transl.fl)