Brussels, 11/02/2003 (Agence Europe) - As we announced earlier (EUROPE of 8 February, p.8), the European Commission adopted, on Tuesday in Strasbourg, a proposal for an own initiative decision by Commissioner Michaele Schreyer intended to adjust the financial framework 2004-2006 of the Community budget to take into account EU membership by ten new States. The proposal, which keeps within the limits of the financial perspective agreed in Berlin in 1999, takes into account decisions adopted at the European Council of Copenhagen last December.
In the 25-member EU budget, there will no longer be differences between the former Member States and the new Members. According to the Commission proposal, the next 2004 budget could account for up to 1.12% of the GNI (gross national income) in commitment appropriations, i.e. EUR 102.935 billion (according to 1999 prices) and up to 1.08% of GNI in payment appropriations, i.e. EUR 100.800 billion (1999 prices). Compared to the financial perspectives finalised in 1999 in Berlin, the ceilings remain the same for payments and are even slightly lower for commitments. The Commission foresees a 2005 budget of a maximum of EUR 104.938 billion in commitments and 101.600 billion in payments. For 2006, the budget has a ceiling of EUR 106.501 billion (commitment appropriations) and EUR 103.830 billion (payment appropriations). By way of comparison, the ceiling of the budget 2003 amounts to EUR 93.215 billion in commitments and EUR 94.880 billion in payments. We would point out that the Commission also presents a table of the new financial perspectives taking account of 2004 prices, instead of 1999 prices.
In concrete terms, the ceilings for agriculture, Structural funds, internal policies and administrative expenditure must be increased by the amount decided by the Council in Copenhagen (according to the 1999 prices and commitment appropriations) by 9.927 billion euro in 2004, 12.640 billion euro in 2005 and 14.901 billion in 2006. You may recall that a gradual increase is provided for for agriculture (from 1.897 billion euro for 2004 to 4.147 billion euro in 2006), in commitment appropriations) and structural funds (from 6.070 billion in 2004 to 8.770 billion euro in 2006).
In the realm of internal policy, the new Member states will be able to benefit from all the programmes. This heading must also contain new measures specifically programmed or these countries, like the so-called "Schengen" facility (286 million euro in 2004, 302 million euro in 2005 and 271 million euro in 2006), improvement of controls at external borders, nuclear safety (125 million euro in 2004 as well as in 2005 and 2006), and the setting up of institutions (200 million euro in 2004, 120 million euro in 2005 and 60 million euro in 2006).
The ceiling for pre-accession aid remains unchanged, as the Commission proposes gradually increasing by 20% in 2004 and 30% in 2005 and 40% in 2006 credits for Bulgaria and Romania: these two countries must have 1.228 billion euro in 2004, 1.330 billion in 2005, and 1.432 billion in 2006. From 2004, the aid programme for Turkey will have to be financed from this heading: credits for turkey must at least double by 2006. The Commission foresees the creation of a section specially designed to pay out compensation (in the form of a temporary treasury facility) for new Member States. Compensation will be from 1.273 billion Euro in 2004, 1.173 billion in 2005 and 940 million Euro in 2006. This compensation will allow new Member States to avoid dangerous budgetary situations after accession than before, notably that they remain net beneficiaries with regard to the Community budget. The Commission has prepared a second draft for adjustments of financial perspectives in cases of political regulation of the Cyprus issue (notably with a new increase in the EUR 60 million ceilings in 2004, EUR 89 million in 2005 up to EUR 124 million in 2006).
In presenting this proposal to the European Parliament, Michaele Schreyer outlined on Tuesday afternoon that the financial perspectives had also been adapted in keeping with 2004 prices. May MEPs, such as British Labour Party member, Terence Wynn, were worried by the Council's desire to include the Copenhagen figures in the accession treaties of future Member States. "This represents a dilemma for the EP: the Council could include these figures in order to vote on them so that it was certain what we would be voting on in the accession treaties. If this is the case, what would be the EP's role in the negotiation of financial perspectives asked Mr Wynn. The proposals will be discussed during the trialogue budgetary meeting newt week in Athens.