Brussels, 27/04/2004 (Agence Europe) - By proposal of Michaele Schreyer, the European Commission will adopt the preliminary draft budget (PDB) for 2005 this Wednesday, which provides a sharp increase in funds for agriculture and structural actions due to the impact of enlargement. On the same day, the Commission will finalise its position on the details for the payment of 200 million EUR for the reconstruction of Iraq, under a budget heading with very little remaining leeway. The PDB also provides for an increase in pre-accession aid to Turkey, from 250 to 300 million. The 2005 budget will be particularly tight, given the EU's commitments and priorities, and the fall in ceilings on the three headings of the financial perspectives (for technical reasons: EUROPE of 24 February, p.13). Credits under almost all of the budget headings are getting dangerously close to the ceilings of the financial perspectives. The Commission has proposed a general budget of 117 billion EUR in commitment appropriations and 110 billion in payment appropriations (with ceilings in the financial perspectives of 119 and 114 billion EUR respectively).
Agriculture: the Commission plans an increase of 8.3% in credits, due notably to the payment of direct aid to the new Member States. Proposed commitment appropriations rise to 50.7 billion EUR, in a heading for which the ceiling is set at 51.4 billion.
Structural actions: the impact of enlargement is being felt here as well, as the Commission is suggesting going right up to the ceiling of 42.4 billion EUR (in commitments), an increase of 3%. For the first time, Ireland will not benefit from cohesion funds.
Internal policies: Commitment appropriations will be 8.9 billion EUR, a slight increase. The Commission will distribute the credit according to its new priorities (growth, employment, area of security and justice...).
External policies: the Commission proposed the mobilisation of the flexibility instrument (allowing the ceiling of a heading with no room for manoeuvre to be exceeded by up to 200 million EUR), and an increase in pre-accession aid: 1.55 million for Romania and Bulgaria and 300 million for Turkey. The ceiling for this heading is 5.1 billion (commitments).
Administrative expenditure: Not without difficulties, the Commission plans to "stick" at the ceiling set at 6.3 billion. It has called for the creation of 700 new jobs, half of which for language services.
The Commission has included an envelope of 1.3 billion EUR under "budgetary compensations" granted to the new Member States.