Brussels, 28/10/2003 (Agence Europe) - In connection with the proposal by Michaele Schreyer, the European Commission is expected to adopt on Wednesday, October's letter of amendment revising spending forecasts for 2004 downwards by more than a billion euros within the framework if the Common Agricultural Policy (CAP) and rural development. The Commission considers that the agricultural needs of the enlarged EU of 25 (market spending and rural development) will now rise to EUR 46.781 bn in 2004, EUR 1.092 bn less than forecast in the preliminary draft budget (PDB) for 2004 (EUR 47.873 bn). This leaves a EUR 2.5 bn margin that is under the financial perspectives ceiling for an EU of 25.
The "economies" were achieved mainly because of last summer's heat wave, which led to a sharp fall of 18 million tonnes in the EU's cereal production, which represents a EUR 741 million reduction in necessary spending in this sector (given the inferior quantities for export and the reduction of intervention stocks). In the same way, in order to take into account of the heat wave, the Commission agreed to look at sending certain direct aid to the animal rearing sector with this being counted in the budget for 2003. Spending estimates were therefore revised downwards by EUR 107 million for beef meat, EUR 303 million for sheep and goat meats. These economies were slightly compensated for by increased needs observed in other sectors, mainly dried fodder (+ EUR 64 million).
This amending letter also updates the international fishing agreements. Therefore the Commission takes into account the renewed and-or four protocols (Madagascar, Isle of Maurice, Republic of Guinea and Ivory Coast) for a total amount of EUR 6.1 million.
But this update has not had any effect financially as this increase in needs is compensated by: the reduction in the financial contribution of Guinea-Bissau (EUR 3.2 million) and the reduction of the amounts in reserve (permanent conclusion of new agreements or protocols in 2004) given the numerous uncertainties that existed when setting the PDB, which have now disappeared.
The amending letter revising downwards agricultural budget spending by EUR 337.4 million, in particular due to the consequences of the drought in Italy and floods in Germany (EUROPE 31 October 2003).