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Europe Daily Bulletin No. 8618
Contents Publication in full By article 15 / 29
GENERAL NEWS / (eu) eu/financial perspectives

Small majority of Commissioners support 1.24% budget - agreement on generalised correction principle

Brussels, 07/01/2004 (Agence Europe) - A small majority of Commissioners favour a community budget of 1.24% of Gross National Product, indicated a Community source at the end of a College debate on Wednesday on the next financial perspectives. A compromise is being worked out on the period for the financial perspectives: Agenda 2007 could last 7 years followed by Agendas of 5 years. Most Commissioners agree on the principle for a generalised correction mechanism but the Commission is not expected come out with exact proposals on this. The European tax issue is "still not ripe"

Eleven Commissioner support the 1.24% (three Commissioners responsible for structural funds, while the British, German and Dutch commissioners are strongly opposed and do not want to go beyond 1.15%. Other Commissioner want the Commission communication to present several options but no one decision. Community GNP of 1.24% would in 2011 according to current forecasts produce a budget of Eur 147 bn in 4 sections: 1) competition and jobs: EUR 22 bn; 1b) cohesion policy: 46.9 bn; 2) conservation and natural resources management: 53.7 bn (agriculture: 42.7; rural development 9.8; fisheries 0.8; environment 0.38); 3) justice and home affairs 2.6 bn; 4) external policy: 12.45 bn; others (administrative spending): 9.3 bn.

The College is expected to deal with these issue during its seminar on 25 January. The cohesion report, the future of regional policy will be adopted on 13 February.

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