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Europe Daily Bulletin No. 8945
Contents Publication in full By article 24 / 42
GENERAL NEWS / (eu) ep/financial perspectives

Temporary committee leaves door open for co-funding of market agricultural expenditure

Brussels, 11/05/2005 (Agence Europe) - In Strasbourg on Tuesday evening, the European Parliament's temporary committee on the “political challenges and budgetary resources of the enlarged EU” adopted, by 29 votes in favour, 9 against and 4 abstentions, the report by Reimer Böge (CDU), which plans a Community budget of 1.074% of the gross national income (GNI) of the enlarged EU in payment appropriations and 1.18% of GNI in commitment appropriations for the forthcoming financial perspectives (post 2006). The report, which will be examined and voted on by the EP at the June plenary session (6-9 June) in Strasbourg, provides for the possibility of bringing in co-funding by the Member States of market agricultural expenditure, but only if the funds earmarked prove insufficient when Romania and Bulgaria join the EU in 2007. The temporary committee favours higher credits than the European Commission's initial proposal, especially for the EU's external actions, but also for actions in the fields of “citizenship, liberty, security and justice”. The report voted on is in line with the political and budgetary guidelines the rapporteur hoped for (EUROPE 8921).

Since July 2004, the Commission has been proposing a volume equivalent to 1.14% of GNI in payment appropriations and 1.26% in commitment appropriations, but the difference with the result of the vote of the competent temporary committee of the EP is not enormous, given that the MEPs are not taking account of the following expenditure: the European development fund (or -0.03% of the GNI of the enlarged EU), the Solidarity Fund (-0.008%) and the emergency reserve aid (-0.002%). They also take the view that agricultural expenditure for Romania and Bulgaria (representing 0.01% of GNI) should be financed below the ceiling of agricultural expenditure ruled on by the European Council of October 2002 for the period 2007-2013.

At a press conference, the President of the EP, Josep Borrell, repeated that without the agreement of the EP, “there will be no new financial perspectives”. The choice of a five-year period for the duration of the forthcoming financial perspectives and of following ones is related to a measure of “democratic rationality” (as the mandates of the Commission and the EP are also for five years), he said (although the Commission and Council are tabling on 2007-2013). The EP's temporary committee has tried to present an ambitious yet realistic budget, which is slightly lower than the one put forward by the Commission, whilst containing different priorities, said Mr Borrell. “In any case, we have no intention of renationalising the common agricultural policy (CAP), but we are not ruling out the possibility of providing national co-funding measures for the agricultural expenditure with the prospect of the planned enlargement”, added the EP President. The rapporteur, Mr Böge, noted that “all the figures” in his initial table had been confirmed. He feels that the temporary committee has shored up many points of the Commission's proposal (ambitious levels of funding for research, the trans-European networks), whereas for others, we noted a certain amount of leeway, “air bubbles which had not been used” (Mr Böge referred at this point to the decision to reduce administrative expenditure by 10%). The members of the temporary committee increased credits for policies which are gaining ground (notably to the draft European Constitution), plus life-long learning, social policy, culture and youth, civil liberties, the protection of external borders, security and justice, the rapporteur explained.

On the subject of a heading which was under-funded in the 2000-2006 period, external actions, the temporary committee called for more flexibility to face up to new needs and additional resources for various programmes (pre-accession, neighbourhood policy, and external policy and common security). Moving on to the cohesion, growth and employment heading, the MEPs confirm that funding in the field of the cohesion policy should reach 0.41% of the GNI of the enlarged EU and not exceed 4% of the GNI of the new Member States. However, a certain level of flexibility is recommended in the implementation of this ceiling of 4%. The MEPs are in favour of the introduction of a transitional system for regions hit by the “statistical effect”. On agricultural expenditure and the environment, the EP rejects any idea of renationalising the CAP, whilst including the option of phasing in the co-funding of agricultural expenditure within the EU15, if funds required came to exceed credits available, taking account of the accession of Romania and Bulgaria. Natura 2000 (biodiversity and natural habitats) should be given an envelope of 21 billion EUR. The MEPs take the view that an increase of a billion EUR will be needed to complete the area of liberty, security and justice.

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