Brussels, 30/05/2002 (Agence Europe) - Adopting the report by Guido Podestà (Forza Italia) on second reading in Brussels on Thursday on the second draft Supplementary and Amending Budget (SAB) for the 2002 financial year, the European Parliament agreed to the Member States being repaid all the funds not spent in 2001, ie EUR 10 billion. On the first reading (report by British Labour MEP Terence Wynn), Parliament suggested withdrawing EUR 4.5 billion of the surplus to fund various programmes and activities under the current (2002) budget (see EUROPE of 26 April, p.11).
The turnaround, whereby the amendments on first reading were withdrawn at the last moment (the Council had rejected them), looks rather like an exchange of favours between the Parliament and Council in the run-up to Tuesday's consultation over the rehashing of the Financial Regulation. At Monday's three-way meeting on the issue, rapporteurs Gianfranco del Alba (Lista Bonino) for the Budget Committee and Michiel van Hulten (PES, the Netherlands) for the Budgetary Control Committee are reported to have won significant progress (that still has to be confirmed by COREPER) over the assessment procedure for standard SABs (meaning SABs that don't involve any specific repayment of budget surpluses to Member States). The EP reportedly managed to retain its prerogative to examine standard Supplementary and Amending Budgets in exchange for concessions from the Council over balanced SABs (concerning surpluses). Moreover, Commissioner Michaele Schreyer explained before the EP's first reading that she would probably not have been able to efficiently incorporate part of the surplus in the budget.
Approving SAB No. 2/2002 without amendment, Parliament was keen to repeat its concern regarding the accumulation of payments remaining to be liquidated (that now risk exceeding EUR 100 billion in total) and its desire to strike a better balance between commitment appropriations and payment credits. The EP also called on the Commission to assess (before 30 September) the situation of payments reaming to be made. If necessary, on that date the Commission should present appropriate adjustments either through an overall transfer or an SAB. The Commission said it would be able to meet this request.
On Wednesday, the Commission will adopt draft Supplementary and Amending Budget 3/2002, expected to confirm that the surplus situation is not improving. The latest estimates suggest that the balance to be paid to Member States is around EUR 13.7 billion, as opposed to the previous estimate (in SAB 2/2002) of EUR 10 billion.