Brussels, 07/02/2003 (Agence Europe) - At an initiative by Commissioner Michaele Schreyer, The European Commission is to adopt, on Tuesday in Strasbourg, a proposal on adjusting the financial perspectives for 2000-2006 (finalised by the European Council of Berlin in June 1999) in order to take into account spending arising from EU enlargement to ten new Member States in 2004.
The key modifications will mainly consist in transferring appropriations from expenditure Heading 8 ("Enlargement") reserved for the ten new Member States to the other main expenditure headings (agriculture, structural funds, internal policies and administration). Headings 4 (external actions) and 6 (reserves) are not affected by the adjustment. The ceiling of the pre-accession aid heading will remain unchanged, in accordance with the conclusions of the European Council of Copenhagen. The conclusions provide for this heading being used for aid programmes for Turkey as of 2004 and for increased appropriations to Bulgaria and Romania between 2004 and 2006. A new heading will be created (replacing the former Heading 8 "Enlargement") to finance budgetary compensation in favour of the new Member States. It is also foreseen that additional funding will be included in the case of political agreement on reunification of Cyprus. If negotiations fail, only the southern part of Cyprus will join the EU in May 2004, with the nine other States.
The proposal, which has to be approved by the Council and Parliament, takes up the financial elements of the European Council of Copenhagen's agreement on 12 and 13 December 2002, and also takes into account changes in the enlargement timetable and number of candidates concerned. The financial framework approved in Berlin provided for increases in the annual amounts for the period 2002-2006 to rise from EUR 6.45 billion to EUR 16.78 billion (commitment appropriations) on the basis of a scenario providing for enlargement to six new Member States in 2002. As enlargement will happen in 2004 and concern ten new Member States, it is obviously necessary to adjust the Berlin framework.