Strasbourg, 23/10/2003 (Agence Europe) - During its first reading of the draft budget 2004, the European Parliament rejected (185 for, 282 against and 12 abstentions) the amendment by the EPP-ED calling on the EU to make EUR 500 million available for rebuilding Iraq. The EP retains the European Commission proposal as a "working hypothesis" (EUR 200 million in 2003 and 2004) but only accepted at this stage EUR 70 million for the next two years, the rest having to be negotiated with the Council.
The EP also expressed its concern about the discussions under way at the European Commission on the next financial perspectives but this did not impress Commissioner Michaele Schreyer who insisted on the right of own initiative of the institution to which she belongs. For administrative spending, the Parliament said it was willing to grant 272 new posts requested by the Commission for 2004, with certain guarantees. Furthermore, part of the funding for the operation of the Anti-Fraud Office (OLAF), Eurostat and the Committee of the Regions was frozen.
"We foresaw for Iraq EUR 200 million as a basis for negotiation with Council (…) and we shall see what results from this", the rapporteur for the general budget, Jan Mulder (ELDR, NL) told the press. "It is a difficult time for Europe and there are restrictions which are reflected in our vote", he commented in general. Mr Mulder then summarised the main results of the EP's first reading. For agriculture, he said there was an increase in funding in order to examine the possibility of setting up insurance provisions to cover part of the cost of eradicating animal diseases, as well as a decision to accompany CAP reform with measures aimed at improving quality policy. For structural actions, the EP has increased payment appropriations "as Member States still consider they can spend more than what the Commission is proposing", Mr Mulder said. In his view, the decisions on internal policies respond to the wish to "make enlargement a success", mainly by favouring the development of SMEs in these countries. Mr Mulder also specified that the EP has placed in reserve 5% of the funding for NGOs in the field of external actions in order to "look more closely at how these organisations spend their money on the ground". As for the new posts requested by the Commission, he said the EP had decided to "follow the Commission" (unlike the Council). "I feel the conditions we have set will be respected by the Commission", the rapporteur said.
Ms Schreyer spoke of an "historic budget" (since it will be the first for 25 members) "which should meet numerous challenges". She noted the difference between the Commission's initial proposal in its preliminary draft budget and the successive decisions by the institutions at different stages of the procedure "is far less marked than in the past".
For commitment appropriations, the Commission had proposed EUR 112.2 billion, reduced by the Council (in July) to EUR 111.9 billion, and the Parliament has recently finalised at first reading a budget of 112.3 billion. For payment appropriations, the Commission had proposed EUR 100.6 billion, the Council had retained 100.1 and the EP 103.5 billion. Compared to the first reading of the Council in July, the EP approved an increase of EUR 441.8 million for commitment appropriations (of which +177.7 million were for farming, +140 for external actions, +66.5 for internal policies, +41.6 for administrative spending) and 3.4 billion for payment appropriations (of which +420.8 million for external actions, +340 for the various pre-accession aid instruments, +177.7 for agriculture, +41.6 for administrative spending, and +1.4 billion for structural actions.
In the external actions fields, "the EP confirmed the Commission's proposal for Iraq", Ms Schreyer welcomed, recalling the EUR 200 million foreseen in 2003 and 2004 plus the 100 million already acquired for humanitarian aid. "The EP now very clearly says: we want to help the Iraqi population through the Community budget and we agree with the proposal put to us", she said, seeing this as a very clear pledge that the EU will take action in this field.
With regards administrative spending, the EP decided to place in reserve half (i.e. EUR 21.3 million) of the Eurostat operational budget and one quarter (EUR 2.9 million) of its administrative credits. These amounts will only be released once the Commission has clarified and improved its internal communication means in order to allow senior officials entrusted with management tasks and Commissioners to take rapid and effective provisions to tackle the irregularities and assume their responsibilities. Fifteen percent of funding for OLAF (i.e. EUR 6.28 million) were also placed in reserve as the EP considers that the new posts for this body should be devoted to inquiries within institutions. Concerning the Committee of the Regions, the EP decided to place in reserve 25% of the funds intended for the reimbursement of members' travelling expenses (in the context of the inquiry under way at OLAF on irregularities in this field (see on this subject EUROPE of 22 October, p.16). It should be noted that the EUR 8.4 million for financing the European political parties were not approved by the EP. On the whole, the EP approved most of the guidelines set out by the Committee on Budgets (EUROPE of 15 October 2003, p.10).
EP and Commission differ over preparation for financial framework after 2006
The Parliament adopted an amendment by the EPP-ED Group which insists on its "serious concern" about the discussion underway at the Commission on the subject of the future political priorities of the financial framework after 2006. It considers that no decision should be taken at the present stage mainly given the imminence of EU enlargement. According to the EP, the decision must be up to the future Commission, as soon as it has been formed and has defined its priorities. The final decision should then be taken by the budgetary authority. Ms Schreyer, who is preparing a communication for mid-November on the next financial framework, replied: "as the Commission, we have the right of own initiative in our capacity as the Commission and we shall, as planned, use it to make proposals". She recalled, in order to justify the Commission's action, that the financial perspectives are " a long undertaking which calls for preparation". She noted that, in any event, "decisions will be taken after candidate countries join and with the new Parliament". "I shall be very pleased if this legislature allows us to take advantage of the experience it has gained in the current application of the financial perspectives", added Ms Schreyer, before advising the EP to organise a hearing on this subject.