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Europe Daily Bulletin No. 8079
Contents Publication in full By article 29 / 41
GENERAL NEWS / (eu) ep/budget 2002

Parliament approves draft budget of 99.634 billion euro and calls on Council not to act alone again

Strasbourg, 25/10/2001 (Agence Europe) - When voting on first reading, in Strasbourg on Thursday, on the draft budget 2002, the European Parliament approved a budget amounting to 99.634 billion euro in commitment appropriations and 98.736 in payment appropriations, an increase, respectively, of 624.999 million euro and 3.138 million euro on the figures agreed by the Council of 20 July. In this context, Parliament adopted the reports by Carlos Costa Neve (Portuguese, EPP-ED), on the general budget, and Kathalijne Buitenweg (Dutch, Green/EFA) in which it observes that the current ceilings of the financial perspectives under most headings (administration, external actions, Structural Funds, internal policies) no longer allow for needs to be met, yet needs which the European Union has to face up to. Parliament also calls on the Council henceforth to engage in genuine negotiations with it in the next stages of the budgetary procedure. Here is an overview of the spread of the appropriations to have emerged from the first reading:

  • Agriculture: appropriations voted for market expenses amount to 40.794 billion euro, representing an increase of 368 million euro in relation to the Council's draft budget. The EP thus refused the generalised cuts of 200 million euro operated by the Council and the reductions to the milk distribution programme in schools.
  • Structural Funds: the EP did not follow the opinion of the Committee on the Budgets which recommended placing part of the appropriations included under this heading in reserve, but decided to substantially increase payment appropriations (+1.470 billion euro) in relation to the results obtained in Council. It voted at 33.638 billion euro in commitments and 33.657 billion in payments.
  • Internal policies: the EP earmarked 6.553 euro billion in commitments and 6.157 billion euro in payments, or 106.650 and 165.287 million euro more than that provided for by the Council. It, notably, increased the following items: - internal market (+17.7 million euro in commitments and 14.8 million euro in payments); - area of freedom, security and justice (+19.9 million euro and +6.9 million euro); - research (+51.6 million in payments); - education (+26.8 million euro and + 41.315 million euro).
  • External policies: by approving the sum of 4.872 billion euro in commitment appropriations and 4.779 billion euro in payment appropriations, the EP reduced to nought the margin of 45 million euro left by the Council. It agreed (450 in favour, 16 against and 18 abstentions) to take 113.8 million euro of the 125 million euro earmarked for the fisheries agreement with Morocco and allocate this to different external actions. These 125 million euro had been placed in reserve by the Commission and left as such by the Council. So as not to exceed the ceiling for this heading, Parliament reduced the spending intended for the Common Foreign and Security Policy (CFSP) and for aid for the Western Balkans.
  • Administration; with an envelope of 5.175 billion euro, the EP wiped out the margin left by the Council so as to take more account of the needs formulated by the institutions in view of enlargement.
  • Aid to pre-accession: the payment appropriations of this heading were increased (2.901 billion euro, against the 2.541 billion the Council had wanted), contrary to commitment appropriations, which remain at the same level as decided by the Council.

The rapporteurs of the different committees expressed their hopes and concerns: for the Economic and Monetary Committee, Mr. Kuckelhorn (German, SPD) recommended parliamentary control over agencies and their activities; for the Industry Committee, Ms. Gill (British, Labour) demanded progress in achieving the knowledge-based economy; for the Agriculture Committee, Mr. Gorlach (SPD) demanded that tobacco farmers be offered concrete alternatives; for the Committee on Constitutional Affairs, Ms. Beres (French, Socialist) defended the financial backing for the European Movement.

This budget is one of the smallest budgets on which Parliament has ever been called upon to vote, observed British Conservative, Mr. Elles, for the EPP/ED: but enlargement will, by 2006, render the budgetary exercise more difficult. Mr. Elles considered that the appropriations provided for for the Food Safety Agency had to remain in reserve until such times as its headquarters had been decided upon. Rumours are circulating on the fact that the "early-retirement" package planned for Commission officials will not benefit those of the Parliament: whereas, Ms. Elles considers that it should be valid for all institutions. One principle will inspire us in our judgement of the budget: we must have best value for money. This demand is shared by British Labour's Mr. Wynn, chair of the Budgets Committee, speaking on behalf of the Socialist Group. At the last conciliation, we agreed practically on nothing, Mr. Wyn lamented, demanding an in-depth discussion between the three institutions on how in future to finance Categories 3, 4 and 5.

The problem of the remainder to be spent must be settled, said Finland's Mr. Virrankoski, for the Liberal Group, deploring the deadlock in the fisheries agreement with Morocco, and calling for part of the appropriations earmarked for this agreement to be used for the modernisation of the Portuguese and Spanish fleets. The EU, said Germany's Ms. Ruhle, on behalf of the Greens, must not raise hopes concerning the intervention of the structural Funds and humanitarian aid without looking at needs and appropriations: it has to remain flexible and able to act abroad. The budgetary discipline has been respected, and that's a good thing, according to Finland's Mr. Seppanen, for the United Left/Nordic Left, but one item forgotten is that of the fight against unemployment, which is a Union priority. Europol and Eurojust need developing to combat terrorism, but this must not serve as excuse for making a Community issue of this policy, said France's Ms. Caullery, for the Union of the Europe of Nations Group. Ms. Caullery criticised the appropriations devoted to information on the euro, which, she said, is paramount to propaganda. Along the same lines, the Netherlands' Mr. van Dam, for the Europe of Democracies and Diversities Group, considered that "unilateral propaganda" from Brussels in favour of political Union has as sole result alienating citizens. There are at least twenty-three border regions that need the Union's aid in view of enlargement, pleaded Austrian Mr. Ilgenfritz, of the FPO, for his part. German Social-democrat Mr. Walter agreed on this point, but placed special emphasis on the budget not forgetting the goal of social inclusion, even more topical in a situation where recession is feared. As for Mr. Staes, Belgian Green, Head of the EP delegation for Central Asia, he asked for more appropriations to be devoted Kazakhstan, where the population has a life expectancy of 52 years and 12-year old girls victims of nuclear irradiation have breast cancer. It is the first time that a rapporteur on the budget has not "tinkered" with the financial perspectives, observed Dutch Liberal Mr. Mulder, and Mr. Dell'Alba, of the Bonino list, asked if it would not be a good idea, in the interest of a coherent discussion on the budget, to return to the old system, in which the Commissioner responsible for the budget also dealt with the personnel.

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