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Image header Agence Europe
Europe Daily Bulletin No. 9080
Contents Publication in full By article 21 / 42
GENERAL NEWS / (eu) eu/budget 2006

Agreement on draft budget 2006 - payment appropriations at 1.01% of GNI, EUR 275 million flexibility and significant increase for CFSP

Brussels, 01/12/2005 (Agence Europe) - The three Community institutions came to an agreement on the evening of 30 November on all the elements of the budget for 2006. In the wake of the success of this budgetary trilogue, convened after the failure on 24 November, Member States adopted without debate the decisions necessary for finalising the second Council reading of the draft budget. On 15 December in Strasbourg, the Parliament will adopt the budget for 2006 at second reading.

The trilogue of 30 November allowed three matters being disputed between Parliament and Council to be settled (EUROPE 9076). Payment appropriations: The EP is to keep to a total budget of EUR 111.97 billion in payment appropriations, which represents 1.01% of EU Gross National Income (GNI) and a 5.4% rise compared to 2005. If necessary, additional funding may be found during the year for Structural Funds. Flexibility: The budgetary flexibility mechanism is used up to EUR 275 million in commitment appropriations to finance the following external actions: 95 million (out of 200 million) for the reconstruction of Iraq, 40 million (the total allocation earmarked) for ACP sugar producer countries, 40 million for Common Foreign and Security Policy (CFSP). The total budget for CFSP amounts to 102.6 million in commitment appropriations, i.e. nearly 64% of the increase compared to 2005, given the new missions that the EU should deploy in the Balkans (Kosovo) in particular. Codecision programmes: The EP has received clearance for an increase of EUR 100 million (in payment appropriations) for six programmes under internal policies: 21.2 million for the 6th framework programme for research, 28.5 million for SMEs, 33 million for “Socrates”, 7 million for “Life”, 9.2 million for “Youth” and 1 million for the cultural organisations.

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