Brussels, 08/05/2001 (Agence Europe) - On Tuesday, the Commission adopted the Preliminary Draft Budget (PDB) for 2002 which, despite significant imperatives in financing the BSE crisis and the foot and mouth outbreak and the respect of EU undertakings towards third countries and candidate countries, confirms our "commitment to strict budgetary discipline. The Berlin ceilings are fully respected and we propose to stabilise our payments at their 2001 levels of 1.06% of EU GDP", insisted the Commissioner for the Budget, Michaele Schreyer before the press (see yesterday's EUROPE, p.13). The Council will rule in first reading on 20 July, after examination of the dossier by the Budgetary Committee in June and by Coreper, in early July.
The Commission foresees to set the level of commitment appropriations at EUR 100.3 billion (+3.4% compared to 2001), which leaves a global margin of more than EUR 500 million under the ceiling set by the Berlin European Council in March 1999 ("Berlin ceiling"). The increase in payment appropriations has been limited to 4.8%, up to EUR 97.7 billion. This increase must mainly allow to finance the undertakings the remain to be liquidated (the ending of payments relating to undertakings contracted during the previous financial years, known as "Rest a Liquider" or "RAL") and the implementation of the reform of the Common Agricultural Policy (CAP). "The amount of payments, however, remains EUR 2.5 billion below the 'Berlin Ceiling', which proves that budgetary discipline has come into play", welcomed Mrs Schreyer.
One billion reserve to plan for new food crises
Mrs Schreyer felt that this PDB arrives at a crucial time for agriculture (…) The Commission tackles this challenge with determination and care, by proposing to create a one billion Euro reserve in the agriculture budget and to leave a margin under the ceiling of EUR 365 million in this sector, and that this shows our desire to respect the long-term undertakings, which we have agreed upon with third countries and the candidate countries.The PDB is as follows:
- Agriculture (EUR 46.22 billion): Agricultural spending represents the most important position (46%) and the greatest increase (+5% compared to 2001, or +EUR 2.2 billion). In addition to the creation of a one billion Euro reserve, in order to cover, if necessary, new veterinary spending or that relating to the market, the Commission foresees an increase of EUR 1.145 billion in the beef sector to finance the seven point plan by Franz Fischer (presented in February). 420 million will be included to cover veterinary spending, of which 250 million to pay the costs of foot and mouth. A new additional budget could be adopted as of 2001 to begin refunding the Member States. Mrs Schreyer added that savings could have been made in the sugar sector (300 million in contributions) and sheep meat (560 million, due to the ending of early premium).
- Structural actions (EUR 33.63 billion): Due to the agreement over the adapting of the financial prospects (see yesterday's EUROPE of 4 May, p.12), 870 million in unused credits in 2000 will be reused in 2002. Which explains the rise of 2.8% in the credits compared to 2001. Without this budgeting, the increase of only 1.5% "reflects the stabilising in the intensity of aids and the progressive elimination of ineligible regions, explains the Commission. Answering journalists over the request by Spain to receive 300 million in aids towards restructuring its fleet due to the failure of the fishing agreement with Morocco, the Commission stated that she waited for Madrid to provide "concrete" proposals, "according to a precise timetable", and that these aids should be decided upon in the framework of structural policy and not through the transfer of funds from one budget section to another.
- Internal policies (EUR 6.48 billion): The increase in appropriations is above the average for the entire budget (+4%). The margin proposed under the Berlin ceiling is around EUR 76 million. Below are the main aspects: - research and development remains the most significant area in this section (nearly 2/3), with more than EUR 4 billion: - 111.7 million (+7.12% compared to 2001) is dedicated to information and communication policy (Euro campaigns, 2004 IGC and enlargement); - EUR 7.5 million will be allocated to the establishment of the European Food Authority; - the LIFE III programme receives 140.6 million (84.2 million increase); - DAPHNE programmes receives 5 million (fight against violence against children), the European fund for refugees gets 45 million and the campaign against discrimination 16 million.
- Internal policies (EUR 4.8 billion): Commitment appropriations are down 2.4%. "Given the efforts called for in 2000 and 2001, it will not be necessary to resort in 2001 to the flexibility instrument to finance the policy in the Western Balkans", said Ms Schreyer. It is proposed to leave a margin of EUR 63.2 million below the ceiling, but the credit in favour of the Western Balkans will reach EUR 813 million in commitments and 760 million (+55%) in payments. Regarding Mediterranean policy ("at the heart of our interests", says the Commission), commitments will be EUR 863 million and payments 547 million (+19%).
- Administrative spending (EUR 5.14 billion): 5.1% of the total budget will be devoted to administrative spending for all the institutions, including the cost of pensions, with 2.7% in favour of the Commission. This spending is justified by: - the request for 317 additional posts in 2002 as a follow-up of the peer group exercise; - the strengthening of the exercise of deconcentration towards Commission delegations in third countries (with more than one hundred posts being transferred from the headquarters to delegations); - and a rise in the training budget (one of the main objectives of administrative reform).
- Pre-accession aid (EUR 3.32 billion): For SAPARD, ISPA and the PHARE programme, a total of EUR 3.328 billion will be budgeted. As the rate of implementation is expected to improve, payments will increase 39% (+42% for SAPARD, +157% for ISPA). The Commissioner recalled that, in conformity with the financial perspectives, appropriations were foreseen for enlargement in 2002 (EUR 4.4 billion). However, since no accession will take place in 2002, the money foreseen will not be used.
