Brussels, 03/05/2006 (Agence Europe) - On 3 May the European Commission adopted the preliminary draft budget proposal for 2007, which will be the first budgetary exercise in the new financial framework which lasts until 2013. The 2007 budget is therefore presented according to the new structure (growth, management of natural resources, citizenship, freedom and justice etc.). The Commission is proposing a total budget of € 126.8 billion in commitment appropriations - 1.08% of Gross National Product (GNP) of the EU, which represents an increase of 4.6% compared to the 2006 budget. Proposed payment appropriations stand at € 116.4 billion (0.99% of GNP), 3.9% more than in 2006. The Commission has therefore given a boost to budgetary procedure, linking the Parliament and Council together, which should lead to the final adoption of the 2007 budget by the end of this year.
Budget Commissioner Dalia Grybauskaité again criticised the lack of modernity in the financial perspectives for 2007-13 as decided by Member States (EUROPE 9169) but did highlight the positive aspects in the preliminary draft budget for next year. The Commission is proposing an increase of 11.5% in Community funding allocated to competitiveness objectives and an increase of nearly 15% for cohesion for growth and jobs.
Section 1 “competitiveness”: the preliminary project includes € 54.3 billion in commitment appropriations for competitiveness in growth and jobs (research, Trans-European Networks, social policy etc.) and cohesion for growth and jobs. This represents € 6.8 billion more than in 2006 (€ 47.5 billion). The Commission also is also including a 53% increase compared to 2006 for innovation and competitiveness, + 18% for Trans-European Networks and +30% for the “Education and Lifelong Training Programme”. It is also proposing a budget for the new generation of programmes in cohesion policy.
Section 2 “management of natural resources”: the Commission is proposing a total of € 57.2 billion, a very slight increase of 1.2% compared to 2006, which includes € 43.7 billion in direct agricultural aid and market support (+0.8% compared to 2006) and € 12.4 billion for rural development (+3% compared to 2006). This section also covers aid for fishing and the environment.
Section 3 “citizenship, freedom, security and justice”: the Commission plans on € 1.174 billion - 1.2% more than in 2006.
Section 4 “external action”: the volume of funding proposed is €6.7 billion for new programmes (European instrument for neighbourhoods and partnerships, development and economic cooperation instrument, new stability instrument for meeting crises and instability in third countries and dealing with cross-border challenges).
Section 5 “administrative spending”: € 7 billion included, including that for new posts following the EU's most recent enlargement in May 2004 and in anticipation of Romania and Bulgaria's accession in 2007.