Brussels, 27/04/2005 (Agence Europe) - On Wednesday, as planned, the European Commission adopted (see EUROPE 8936) its preliminary draft budget for 2006 which provides for EUR 112.5 billion in payment appropriations (up 5.9% compared to 2005), i.e. 1.02% of gross national income (GNI) in the enlarged EU, and EUR 121.3 billion in commitment appropriations (up 4% compared to the current budget), i.e. 1.09% of the GNI of the enlarged EU. The next stage in budgetary procedure will, after presentation of the draft budget to the plenary on 10 May in Strasbourg, be the first reading in Council in July followed by the first reading at the European Parliament in October. The second readings at the Council and Parliament will take place in November and December.
Presenting the proposal to the press, Dalia Grybauskaité, the Commissioner for budget and financial programming, pointed out that over one third of the budget will be intended to stimulate economic growth and create more jobs. She was adamant that forecasts should be cautious, in the knowledge that the ceiling of the current financial perspectives is 1.08% of GNI for payment appropriations, which leaves a margin of EUR 6.7 billion.
Agriculture and rural development: The project provides for EUR 51.4 billion in commitment appropriations (+3.5%) and EUR 51.3 billion in payments (+4.6%). The funding suggested for direct aid and market support measures is only up by 2% reaching EUR 43.6 billion (in payment and commitment appropriations), while rural development spending would be up by 13.6% in commitment appropriations (EUR 7.8 billion in total) and 22.8% in payment appropriations (EUR 7.7 billion). EUR 655 million are transferred from direct aid to rural development, as foreseen in the June 2003 reform (modulation principle).
Structural actions: The Commission provides EUR 44.5 billion in commitment appropriations (+5% compared to the 2005 budget) including EUR 38.5 billion for Structural Funds (+3.3%) and EUR 6 billion for the Cohesion Fund (+17.5%). EUR 35.6 billion (+10%) is foreseen in payment appropriations (EUR 32.1 billion for Structural Funds, i.e. +9.3%, and EUR 3.5 billion for the Cohesion Fund, up 16.6%). The new Member States should receive a little over 50% of the total allocation from the Cohesion Fund (commitment appropriations).
Internal policies: The Commission tables on a budget of EUR 9.2 billion in commitment appropriations, a rise of just 1.8% compared to 2005. EUR 8.8 billion is proposed in payment appropriations, representing an increase of 11.5%.
External actions: The Commission foresees a budget of EUR 5.4 billion in commitment appropriations (+1.4%), i.e. EUR 123.5 million above the ceiling of financial perspectives. In order to remedy this problem, it suggests using the flexibility instrument up to this amount, to finance part of the EUR 180 million foreseen in 2006 for the reconstruction of the countries of Asia affected by the tidal wave in December 2004. In addition to the EUR 170 million foreseen in 2005 (including EUR 98 million thanks to the draft supplementary budget presented the same day), the EU therefore undertakes to provide a total of EUR 350 million for reconstruction in Iraq and a budgetary line for helping ACP countries to overcome the consequences of reform of the common market organisation for sugar. The payment appropriations proposed for external actions amount to EUR 5.3 billion, which represents a fall of 2.2% compared to 2005.
Pre-accession aid: The Commission foresees EUR 2.5 billion in commitment appropriations (including EUR 1.6 billion for Romania and Bulgaria, EUR 500 million for Turkey and EUR 140 million for Croatia) and EUR 3.1 billion in payment appropriations.
Answering press questions on negotiations on the next financial perspectives, Ms Grybauskaité recalled the Commission's reserve when it comes to the proposals of the Luxembourg Presidency on cohesion policy. She said that no fewer than 24 Member States had criticised this text during the last General Affairs Council (EUROPE 8935). In particular, she said the Commission did not agree with the transitional regime for the Spanish Cohesion Fund, although the Council may unanimously decide to override such arrangements which have not been proposed by the Commission.