Brussels, 23/02/2000 (Agence Europe) - The financing of aid to the Balkans and the bolstering of aid for rural development are the European Commission's two top priorities for the budget for 2001. The Executive adopted on Wednesday its political guidelines for this budget, with a view to adopting the budget itself in terms of political priorities, commented Commissioner Schreyer as she presented the guidelines to the press. As expected, the operation was marked by the necessity of financing the "political priority" of the plan for the Balkans. This plan -according to estimates by Commissioner Patten's services, which must be confirmed in April when the detailed proposal is presented- is expected to cost EUR 5.5 billion to 2006. This priority would be financed in part by the redeployment of credits within heading 4-external actions, and in part by a transfer in 2001 of EUR 300 million from the agriculture heading. In 2002, a similar transfer of EUR 300 million would be made from agriculture (more specifically, expenses related to the sugar market) to external relations. The Commissioner recalled that the Commission cannot yet propose using the same procedure for the following years even if the needs remain approximately the same, because "we cannot anticipate the results of revision of the common agriculture policy, due to take place in 2003.
Mrs Schreyer insisted on the fact that the reduction of agriculture credits (corresponding to less than 1% of the total appropriation) would not affect farmers' standard of living. The reduction will not affect direct aid and will not reduce existing credits. The increase will simply be less than the authorised ceiling (7.5% instead of 8.5%), via more streamlined Community intervention on agricultural markets. She recalled that "every year, spending is below projections; by reducing agricultural spending by EUR 300 million, the Commission is not straying from the framework of Agenda 2000, but simply reducing its margin of flexibility". The Budget Commissioner also insisted that the reductions would not affect spending for rural development, which will almost reach the ceiling set by the Berlin Summit, with an increase of 9% over 2000. Further, Mrs Schreyer "is sure" that credits allocated for rural development in 2000 but left unused will be carried over to 2001. Such carryover must respect a certain number of conditions, but will not provoke an overrun of the ceiling authorised for this type of spending because the credits carried over to 2001 would still be considered as being part of the 2000 budget year.
Globally speaking, compared to the budget for 2000, the Commission is considering for 2001 an increase in credits -human resources excepted- of some 3% instead of the 4% authorised. But these are only broad guidelines, to which detail will have to be added when the preliminary draft budget is presented.
Commissioner Schreyer stated that, for the first time, the budget guidelines would be accompanied by a presentation by activities, or at least of policy areas, "to know the real cost of activities". Thus, for 2001, the budget will still be adopted according to the traditional method, with a separation of administrative and operational expenditure. In addition to the major priorities, such as financing of the Balkans plan and rural development, on Wednesday the Commission approved financial guidelines and indications for each policy area: external policy, fisheries, research, and so on.
In addition, the question of human resources is an integral pat of the budget guidelines. "In September at the latest, the Commission will reply to Parliament's request for an evaluation of personnel requirements in the Commission", said Mrs Scheyrer. Last Wednesday's debate on this subject, and this Wednesday's, led to adoption of the three-stage strategy proposed by the budgetary services: i) evaluation of requirements, designation of "non-essential" activities and redeployment of personnel within each DG; ii) redeployment between DGs; iii) probably, a request for additional personnel in September (see EUROPE of 14/15 February, p.11). Meanwhile, the Commission is not asking for additional staff, except for the 76 positions already planned for Olaf. The Commission has decided that the whole process, and especially the arbitration for deciding which activities could be dropped, will be decided by a group of five Commissioners: Vice-Presidents Kinnock and de Palacio, Mrs Schreyer, Mr Lamy and Mr Fischler.