Brussels, 30/10/2008 (Agence Europe) - On Tuesday 28 October, the European Commission adopted an amending letter (the second) to the draft 2009 budget on new agricultural spending forecasts. Agricultural spending commitment appropriations (including veterinary and fisheries spending out of the European Agricultural Guarantee Fund (EAGF) has risen to €41,579bn, a €1,280 fall compared to the initial proposal in the preliminary draft budget for 2009. The amending letter demonstrates that total funding for Heading 2 (management of natural resources) is estimated at €56,495bn, which leaves a margin of €3,143bn in commitment appropriations under the corresponding ceiling of the financial framework.
This amending letter also proposes the creation of new budget lines for the “food facility” (rapid response to food price increases in developing countries) in 2009, pending adoption of the legal base. The Commission is proposing to use part of the margin available in Heading 2 of the multiannual financial framework for developing countries that have been hardest hit. The Commission is therefore suggesting that €250 million of commitment appropriations and €900 million in payment appropriations for this initiative are included in 2009, while awaiting adoption of the legal base.
Discussions, however, at the Council demonstrate that such funding modalities for the “Food Facility” will not be maintained. The French presidency has in effect, recently indicated that it preferred the following solution: stagger funding for the programme over three years (2008-2010) instead of two years; find funds by combining three sources of funding, namely, the priority of funding redeployment to Heading 4 (external action) in the EU budget, as well as use of the flexibility instrument and part of emergency aid. The presidency is insisting that the flexibility instrument and emergency aid be used cautiously in 2010 so that they have a margin of manoeuvrability for unexpected needs. Amounts available under the flexibility instrument are: €330 million in 2008, 200 million in 2009 and 200 million in 2010. In the emergency reserve, there is only €20 million for 2008, 244 for 2009 and 249 for 2010.
The amending letter also provides clarification on additional funding announced by the Commission to eradicate bluetongue disease (EUROPE 9771). After analysis of the previous execution and an assessment of the situation, the Commission will present, at the beginning of 2009, the proposals necessary for adjusting the 2009 budget with an additional amount of approximately €100 million on top of the €62 million proposed in the preliminary draft budget. (L.C./trans/rh)