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Image header Agence Europe
Europe Daily Bulletin No. 7961
Contents Publication in full By article 12 / 61
GENERAL NEWS / (eu) eu/budget

09/05/2001 (Agence Europe) - As every year, the Commission has, through the written procedure, and before presenting its preliminary draft budget, adopted the maximum rate of increase in non-compulsory expenditure (MRI) for 2002, setting it at 3.5% (against 3.3% for budget 2001). According to the budgetary procedure (Article 272 of the EC Treaty), Parliament may increase the amount of non-compulsory expenditure through amendments made to the draft budget within the limits of this rate, calculated by the Commission on the basis of different macroeconomic data (notably in relation to the Community GDP and the budget of Member States). Exceeding this MRI is only possible in agreement with the Council. Application of these provisions is a source of frequent conflict between the two branches of the Budgetary Authority. Under the inter-institutional agreement, the rule of the MRI has been neutralized: the EP and Council agree to accept the MRI to result from the budgets established within the limits of the financial perspectives. In other words, this rate would only be implemented in case of a break down in the inter-institutional agreement.

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