Brussels, 30/10/2002 (Agence Europe) - On Michaele Schreyer's initiative on Wednesday the European Commission adopted the third letter of amendment to the 2003 Budget, cutting next year's spending on the Common Agricultural Policy (CAP) and rural development by EUR 337.4 million. This letter of amendment gives details of the 2002 budget surplus (estimated at EUR 500 million, as against last year's EUR 1 bn - see Europe of 31 October 2001) which will be added to income in the 2003 Budget to enable Member States to reduce their national contributions accordingly.
The market expenditure heading in the 2003 Budget (in other words, not including rural development) has been set at EUR 40.082 bn, compared with EUR 40.419 bn in the preliminary draft budget (PDB) details supplied at the beginning of the year.
This leaves a margin of almost EUR 2.6 bn under the heading of the financial perspectives set in Berlin. Together with rural development expenditure (the estimates for which remain unchanged at EUR 4.698 bn) the total agricultural budget will be EUR 44.780 bn (only 525 million euros more than the 2002 Budget), although it was estimated at EUR 45.117 bn in the PDB.
The savings are explained by advance direct aid paid out this year to arable farmers who fell victim to adverse weather conditions - a total of EUR 974 million (EUR 331 million for Italian farmers affected by drought and EUR 560 million for German arable farmers affected by the August floods). Lesser expenditure is foreseen for olive oil (EUR 31 million in savings), fresh fruit and vegetables (11 million less) and sheep and goat meat (109 million). The budget for the sugar industry has been revised upward (+142.6 million), as has spending on flax and hemp (+77 million) with the biggest hike being for milk and dairy products (increase of 560 million).
Ms Schreyer said: "I am happy to convey two pieces of good news to Member States on the 2003 budget - reduced needs for agriculture and less revenue necessary. At a time when every euro counts, Member States will welcome our prudent and disciplined budget management".