Voluntary Report - public distribution

**Date:** 3/17/2004

**GAIN Report Number:** E24054

E24054

**European Union**

**Agricultural Situation**

**EU 2004 Agriculture Budget**

**2004**

**Approved by:**

![](media/image1.wmf)Christine Strossman

U.S. Mission to the European Union, Brussels

**Prepared by:**

Hilde Brans

**Report Highlights:**

The 2004 EU Budget, adopted in December 2003 and published on February
23, 2004, covers the 15 EU member states. An amending budget, proposed
by the European Commission in February 2004, will adapt the budget for
the accession of 10 new member states on May 1, 2004 and should apply
from that date. The amending budget should be adopted by the Budget
Authority before April 16, 2004, just in time for enlargement. All the
figures in this report relate to the current 15 member states, unless
otherwise specified.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Brussels USEU \[BE2\]

\[E2\]

**FINAL EU FY 2004 AGRICULTURE BUDGET**

**Intro**

The 2004 EU budget, adopted in December 2003 and published in Official
Journal L 53 on February 23, 2004, covers the 15 EU member states. An
amending budget proposed by the European Commission in February 2004
will adapt the budget for the accession of 10 new member states on May
1, 2004 and should apply from that date. The budget figures for the
current EU-15 and the ones for the enlarged EU-25 were discussed by the
Budget Authority (the Council and the European Parliament) in parallel
during 2003. Political agreement on the supplementary amounts in the EU
budget has already been reached in the budget procedure for the 2004
Budget. The amending budget should be adopted by the Budget Authority
without discussions before April 16, 2004, just in time for enlargement.
A consolidated version of the 2004 Budget including the amending budget,
will be published by the European Commission. All the figures in the
annex to this report relate to the current 15 member states, unless
otherwise specified.

For more information on the budgetary procedure see GAIN report E23140
"Preliminary Draft Budget 2004".

**Enlargement**

The amending budget will cover the amounts for the 10 new member states.
The additional appropriations proposed for agriculture expenditure
amount to EUR 287 million. These credits will mainly cover market
measures such as export refunds and intervention measures. Direct aids
for the new member states will be gradually phased in and will only have
a budgetary impact from 2005.

For rural development measures under the Guarantee Section of the
European Agricultural Guidance and Guarantee Fund (EAGGF), commitments
are set at EUR 1.733 billion for the new member states. Commitments
under EAGGF are not automatically equal to payments. Appropriations for
payments for 2004 are set at EUR 645 million. Appropriations for payment
reflect cash, to be financed from the member states and expected to be
spent in a given year. Commitment appropriations cover the total cost in
the financial year of programs or projects to be carried out over a
period of more than one financial year. They create a commitment of the
EU towards a beneficiary. As a general rule, appropriations for payments
are lower than appropriations for commitments because the EU budget is
growing and some projects do not materialize.

Market measures are 100% financed by the EU budget while rural
development is co-financed by the member states. The rate of
co-financing varies depending on the region in question.

  ------------------ ----------------- ------------------ -----------------
  **Increase in 2004                                      
  EU Budget in view                                       
  of enlargement (in                                      
  million EUR)**                                          

  **Appropriations   **Total**         **Appropriations   **Total**
  for commitments**                    for payments**     

  Agriculture        286.9             Agriculture        286.9
  expenditure (excl.                   expenditure (excl. 
  rural development)                   rural development) 

  Rural development  1 733             Rural development  645
  and supporting                       and supporting     
  measures                             measures           

  **Total**          **2 019.9**       **Total**          **931.9**
  ------------------ ----------------- ------------------ -----------------

Source: European Commission

  ----------------------------------- -----------------------------------
  **2004 Rural Development Support    
  under EAGGF - allocation by         
  acceding country (in million EUR)** 

  Czech Republic                      163.3

  Estonia                             45.3

  Cyprus                              22.5

  Latvia                              98.7

  Lithuania                           147.3

  Hungary                             181.2

  Malta                               8.1

  Poland                              862.4

  Slovenia                            84.7

  Slovakia                            119.5

  **Total**                           **1 733**
  ----------------------------------- -----------------------------------

Source: Commission Decision 2004/21/EC

# New Budget Structure

The 2004 budget is the first budget officially based on the "Activity
Based Budgeting" structure. The traditional separation of administrative
and operational resources has been replaced by a budget structure
arranged by policy area. The seven broad headings which existed until
now have been replaced by 31 different policy areas. Appropriations for
Agriculture and Rural Development now come under chapter 5 (although
they have to respect separate ceilings under the financial perspective
rules), Fisheries under chapter 11, Health and Consumer Protection under
chapter 17 and Development and Relations with ACP states under chapter
21.

**Financing the EU-25**

All the member states (old and new) will finance the EU budget according
to the same rules. In total, the 25 countries will pay EUR 98.9 billion
in 2004 of which EUR 3.2 billion will be contributed by the new member
states. The breakdown between member states is calculated according to
the rules of the "own resources" system. In 2004, the traditional own
resources will include EUR 1.219 billion agricultural duties and sugar
levies, EUR 10.155 customs duties and EUR 14.324 billion from the VAT
based resource and EUR 73.221 billion from the Gross National Income
(GNI) resources. For 25 member states, the 2004 budget stands at less
than 1% of EU GNI.

**2004 Agriculture Budget**

The agriculture budget represents approximately half of the total EU
budget. At EUR 48.050 billion, the Agriculture Budget for 2004 is 0.7%
lower than in 2003. The appropriations for CAP expenditure in 2004 leave
a margin of EUR 2.5 billion beneath the ceiling in the financial
perspective for 2000-2006. Expenditure for rural development increases
slightly by 1.3%.

Compared to the 2004 preliminary draft budget (ref GAIN report E23140),
CAP budget requirements were revised downward by EUR 1.1 billion. This
downward revision mainly reflects the impact of the drought in summer
2003. Significant amounts of direct payments were paid in advance and
charged against the 2003 budget instead of the 2004 budget. The main
changes can be noted for cereals (- EUR 759 million) with a EUR 442
million cut in intervention appropriations and a EUR 374 million cut in
export refund requirements, despite the depreciation of the dollar
against the Euro. The EUR 36 million cut for rice reflects a EUR 16
million cut in forecast intervention spending and a EUR 20 million cut
in per hectare aid for rice as a result of the Spanish producers being
penalized for exceeding their base area. Intervention for wine has been
cut by EUR 134 million to reflect the poor 2003 harvest. The reductions
in forecast spending on livestock products (- EUR 410 million) are
mainly due to the advance payments in response to the summer 2003
drought.

The Euro-dollar rate went from EUR 1 = USD 1.07 in the 2004 Draft Budget
to EUR 1 = USD 1.12 in the 2004 Final Budget which results in increased
appropriations for export sectors, mainly for sugar and dairy.

The outcome of the 2003 CAP Reform has a minimal impact on the 2004
Budget. Only some minor changes in the dairy sector and the decision to
delay the dried fodder reform (+ EUR 62 million) for another year have
an impact on the 2004 Budget.

Estimates for International Fisheries Agreements have also been updated
in the Final 2004 Budget to cover the renewal and/or extension of four
protocols (Madagascar, Mauritius, Guinea and Ivory Coast).

**ANNEX: 2004 BUDGET TABLES (figures refer to the current EU-15 unless
otherwise specified)**

+-----------------------------+-------------+-------------+----------+
| **TABLE 1: AGRICULTURE &    |             |             |          |
| RURAL DEVELOPMENT (TITLE 05 |             |             |          |
| -- EU Budget)**             |             |             |          |
|                             |             |             |          |
| **SUMMARY OF APPROPRIATIONS |             |             |          |
| -- in Million EUR**         |             |             |          |
+-----------------------------+-------------+-------------+----------+
|                             | **App       | **App       | *        |
|                             | ropriations | ropriations | *Outturn |
|                             | 2004**      | 2003**      | 2002**   |
+-----------------------------+-------------+-------------+----------+
| Administrative expenditure  | 143         | 124         | 112      |
| (monitoring CAP measures)   |             |             |          |
| -- chapter 05 01            |             |             |          |
+-----------------------------+-------------+-------------+----------+
| Plant Products -- chapter   | 27 489      | 26 835      | 28 437   |
| 05 02                       |             |             |          |
+-----------------------------+-------------+-------------+----------+
| Animal Products -- chapter  | 12 541      | 13 404      | 10 361   |
| 05 03                       |             |             |          |
+-----------------------------+-------------+-------------+----------+
| Rural Development --        | 7 918       | 7 815       | 7 281    |
| chapter 05 04               |             |             |          |
+-----------------------------+-------------+-------------+----------+
| Special Accession Program   | 225         | 560         | 555      |
| for Agriculture & Rural     |             |             |          |
| Development -- chapter 05   |             |             |          |
| 05                          |             |             |          |
+-----------------------------+-------------+-------------+----------+
| External Relations          | 5           | 5           | 5        |
| (International Agricultural |             |             |          |
| Agreements) -- chapter 05   |             |             |          |
| 06                          |             |             |          |
+-----------------------------+-------------+-------------+----------+
| Audit of Agricultural       | -361        | -439        | -259     |
| Expenditure -- chapter 05   |             |             |          |
| 07                          |             |             |          |
+-----------------------------+-------------+-------------+----------+
| Policy Strategy (incl.      | 90          | 90          | 41       |
| promotional measures) --    |             |             |          |
| chapter 05 08               |             |             |          |
+-----------------------------+-------------+-------------+----------+
| **TOTAL**                   | **48 050**  | **48 404**  | **46     |
|                             |             |             | 535**    |
+-----------------------------+-------------+-------------+----------+

+-----------------------------+-------------+-------------+-----------+
| **TABLE 2 (BREAKDOWN OF     |             |             |           |
| TABLE 1): AGRICULTURE &     |             |             |           |
| RURAL DEVELOPMENT -         |             |             |           |
| APPROPRIATIONS BY MAIN      |             |             |           |
| CHAPTERS (in Million EUR)** |             |             |           |
+-----------------------------+-------------+-------------+-----------+
|                             | **App       | **App       | **Outturn |
|                             | ropriations | ropriations | 2002**    |
|                             | 2004**      | 2003**      |           |
+-----------------------------+-------------+-------------+-----------+
| **PLANT PRODUCTS**          |             |             |           |
|                             |             |             |           |
| **(Chapter 05 02)**         |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Market measures on cereals  | 545         | 603         | 599       |
+-----------------------------+-------------+-------------+-----------+
| Rice                        | 175         | 180         | 191       |
+-----------------------------+-------------+-------------+-----------+
| Direct payments for arable  | 17 059      | 16 208      | 18 031    |
| crops                       |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Food programs               | 210         | 216         | 161       |
+-----------------------------+-------------+-------------+-----------+
| Sugar                       | 1 711       | 1 654       | 1 745     |
+-----------------------------+-------------+-------------+-----------+
| Olive oil                   | 2 364       | 2 341       | 2 329     |
+-----------------------------+-------------+-------------+-----------+
| Textile plants              | 885         | 908         | 816       |
| (                           |             |             |           |
| flax/hemp/cotton/silkworms) |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Fruit & Vegetables          | 1 607       | 1 618       | 1 559     |
+-----------------------------+-------------+-------------+-----------+
| Products of the             | 1 214       | 1 381       | 1 349     |
| vine-growing sector         |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Tobacco                     | 941         | 963         | 962       |
+-----------------------------+-------------+-------------+-----------+
| Other plant products /      | 778         | 763         | 695       |
| measures                    |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| **TOTAL PLANT PRODUCTS**    | **27 489**  | **26 835**  | **28      |
|                             |             |             | 437**     |
+-----------------------------+-------------+-------------+-----------+

+-----------------------------+-------------+-------------+-----------+
|                             |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| **ANIMAL PRODUCTS**         |             |             |           |
|                             |             |             |           |
| **(Chapter 05 03)**         |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Milk & Milk products        | 2 819       | 2 985       | 2 613     |
+-----------------------------+-------------+-------------+-----------+
| Beef/Veal                   | 8 032       | 8 404       | 7 072     |
+-----------------------------+-------------+-------------+-----------+
| Sheep meat/Goat meat        | 1 530       | 1 805       | 552       |
+-----------------------------+-------------+-------------+-----------+
| Pig meat                    | 38          | 89          | 30        |
+-----------------------------+-------------+-------------+-----------+
| Eggs/Poultry meat           | 106         | 105         | 82        |
+-----------------------------+-------------+-------------+-----------+
| Aid for bee-keeping         | 17          | 17          | 14        |
+-----------------------------+-------------+-------------+-----------+
| **TOTAL ANIMAL PRODUCTS**   | **12 541**  | **13 403**  | **10      |
|                             |             |             | 361**     |
+-----------------------------+-------------+-------------+-----------+
|                             |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| **RURAL DEVELOPMENT**       |             |             |           |
|                             |             |             |           |
| **(Chapter 05 04)**         |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Rural development in the    | 4 803       | 4 698       | 4 320     |
| EAGGF Guarantee Section     |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Rural development in the    | 3 115       | 3 118       | 2 944     |
| EAGGF Guidance Section      |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| **TOTAL RURAL DEVELOPMENT** | **7 918**   | **7 816**   | **7 264** |
+-----------------------------+-------------+-------------+-----------+
|                             |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| **POLICY STRATEGY**         |             |             |           |
|                             |             |             |           |
| **(Chapter 05 08)**         |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Promotion measures --       | 49          | 48          | 12        |
| payments by member states   |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Promotion measures -- EU    | 11          | 12          | 5         |
| payments                    |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Enhancing public awareness  | 7           | 7           | 4         |
| of the CAP                  |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Other                       | 25          | 26          | 21        |
+-----------------------------+-------------+-------------+-----------+
| **TOTAL POLICY STRATEGY**   | **90**      | **92**      | **41**    |
+-----------------------------+-------------+-------------+-----------+

+-----------------------------+-------------+-------------+-----------+
| **TABLE 3 (BREAKDOWN OF     |             |             |           |
| TABLE 2):**                 |             |             |           |
|                             |             |             |           |
| **PLANT PRODUCTS (EXCL.     |             |             |           |
| EXPORT REFUNDS) -- in       |             |             |           |
| Million EUR**               |             |             |           |
+-----------------------------+-------------+-------------+-----------+
|                             | **App       | **App       | **Outturn |
|                             | ropriations | ropriations | 2002**    |
|                             | 2004**      | 2003**      |           |
+-----------------------------+-------------+-------------+-----------+
| **PLANT PRODUCTS -- CHAPTER |             |             |           |
| 05 02**                     |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| **CEREALS**                 |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Intervention storage of     | 7           | 206         | 219       |
| cereals                     |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Intervention for starch     | 341         | 259         | 232       |
| (expenditure related to the |             |             |           |
| accession of the 10 new     |             |             |           |
| member states is estimated  |             |             |           |
| at 2 million EUR)           |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Special aid for Portuguese  | 3           | 13          | 8         |
| producers                   |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| **RICE**                    |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Intervention storage of     | 34          | 30          | 38        |
| rice                        |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Per hectare aid             | 109         | 118         | 113       |
+-----------------------------+-------------+-------------+-----------+
| **DIRECT PAYMENTS FOR       |             |             |           |
| ARABLE CROPS**              |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Aid for producers of maize  | 1 273       | 1 180       | 1 614     |
+-----------------------------+-------------+-------------+-----------+
| Aid for producers of        | 10 834      | 10 450      | 10 718    |
| cereals not subject to the  |             |             |           |
| base area for maize         |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Aid for producers of soy    | 1 377       | 1 250       | 1 846     |
| beans, rape seed and        |             |             |           |
| sunflower seed              |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Aid for producers of peas,  | 507         | 498         | 515       |
| field beans and sweet       |             |             |           |
| lupins                      |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Aid for producers of        | 84          | 56          | 91        |
| non-textile flax seed and   |             |             |           |
| of flax and hemp grown for  |             |             |           |
| fibre                       |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Supplementary aid for durum | 1 099       | 1 017       | 1 233     |
| wheat -- traditional        |             |             |           |
| production zones            |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Supplementary aid for durum | 9           | 8           | 9         |
| wheat- zones other than     |             |             |           |
| traditional production      |             |             |           |
| zones                       |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Aid for grass silage        | 74          | 79          | 75        |
+-----------------------------+-------------+-------------+-----------+
| Set-aside                   | 1 812       | 1 680       | 1 940     |
+-----------------------------+-------------+-------------+-----------+
| **SUGAR**                   |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Production refunds on sugar | 194         | 166         | 157       |
| used in the chemical        |             |             |           |
| industry                    |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Measures to aid the         | 18          | 18          | 14        |
| disposal of raw sugar       |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Adjustment aid for refinery | 41          | 41          | 40        |
| industry                    |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| **OLIVE OIL**               |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Production aid and schemes  | 2 342       | 2 319       | 2 296     |
| related to production of    |             |             |           |
| olive oil                   |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Production refund for olive | 24          | 24          | 27        |
| oil used in the manufacture |             |             |           |
| of preserved fish and       |             |             |           |
| vegetables                  |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| **TEXTILE PLANTS**          |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Aid for fibre flax and hemp | 26          | 26          | 12        |
+-----------------------------+-------------+-------------+-----------+
| Aid for cotton              | 858         | 881         | 804       |
+-----------------------------+-------------+-------------+-----------+
| Aid for silkworms           | 1           | 1           | 1         |
+-----------------------------+-------------+-------------+-----------+
| **FRUIT & VEGETABLES**      |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Compensation for            | 93          | 134         | 61        |
| withdrawals                 |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Operational funds for       | 405         | 405         | 389       |
| producer organizations      |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Bananas                     | 289         | 266         | 212       |
+-----------------------------+-------------+-------------+-----------+
| Special measures for nuts   | 20          | 36          | 98        |
+-----------------------------+-------------+-------------+-----------+
| Production aid for          | 285         | 279         | 278       |
| processed tomato products   |             |             |           |
| (expenditure related to the |             |             |           |
| accession of the 10 new     |             |             |           |
| member states is estimated  |             |             |           |
| at 5 million EUR)           |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Production aid for          | 93          | 86          | 85        |
| fruit-based products        |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Production aid and          | 115         | 112         | 113       |
| intervention for dried      |             |             |           |
| grapes                      |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Compensation to encourage   | 256         | 249         | 265       |
| processing of citrus fruits |             |             |           |
| (expenditure related to the |             |             |           |
| accession of the 10 new     |             |             |           |
| member states is estimated  |             |             |           |
| at 1 million EUR)           |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Free distribution of fruit  | 9           | 9           | 8         |
| and vegetables (expenditure |             |             |           |
| related to the accession of |             |             |           |
| the 10 new member states is |             |             |           |
| estimated at 1 million EUR) |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Other measures              | 5           | 5           | 15        |
+-----------------------------+-------------+-------------+-----------+
| **WINE-GROWING SECTOR**     |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Storage of wine and grape   | 67          | 67          | 69        |
| must                        |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Distillation of wine        | 315         | 430         | 421       |
+-----------------------------+-------------+-------------+-----------+
| Storage measures for        | 191         | 245         | 261       |
| alcohol                     |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Aid for the use of must     | 156         | 156         | 141       |
+-----------------------------+-------------+-------------+-----------+
| Abandonment premiums        | 18          | 16          | 14        |
+-----------------------------+-------------+-------------+-----------+
| Restructuring/conversion of | 443         | 443         | 424       |
| vineyards                   |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| **TOBACCO**                 |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Premiums for tobacco        | 929         | 956         | 952       |
+-----------------------------+-------------+-------------+-----------+
| Research and information    | 14          | 9           | 10        |
+-----------------------------+-------------+-------------+-----------+
| **OTHER PLANT PRODUCTS**    |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Dried fodder & grain        | 384         | 389         | 388       |
| legumes                     |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Seeds                       | 109         | 110         | 99        |
+-----------------------------+-------------+-------------+-----------+
| Hops                        | 13          | 13          | 13        |
+-----------------------------+-------------+-------------+-----------+
| Posei (remote regions)      | 268         | 249         | 199       |
+-----------------------------+-------------+-------------+-----------+
| Aid for small producers     | 4           | 2           | \-        |
+-----------------------------+-------------+-------------+-----------+
| **TOTAL PLANT PRODUCTS      | **25 732**  | **25 202**  | **26      |
| (EXCL. EXPORT REFUNDS)**    |             |             | 829**     |
+-----------------------------+-------------+-------------+-----------+

+-----------------------------+-------------+-------------+-----------+
| **TABLE 4 (BREAKDOWN OF     |             |             |           |
| TABLE 2):**                 |             |             |           |
|                             |             |             |           |
| **ANIMAL PRODUCTS (EXCL.    |             |             |           |
| EXPORT REFUNDS) -- in       |             |             |           |
| Million EUR**               |             |             |           |
+-----------------------------+-------------+-------------+-----------+
|                             | **App       | **App       | **Outturn |
|                             | ropriations | ropriations | 2002**    |
|                             | 2004**      | 2003**      |           |
+-----------------------------+-------------+-------------+-----------+
| **ANIMAL PRODUCTS --        |             |             |           |
| CHAPTER 05 03**             |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| **MILK & MILK PRODUCTS**    |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Intervention storage of     | 11          | 10          | 86        |
| skimmed milk powder         |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Aid for disposal of skimmed | 604         | 531         | 446       |
| milk (expenditure related   |             |             |           |
| to the accession of the 10  |             |             |           |
| new member states is        |             |             |           |
| estimated at 20 million     |             |             |           |
| EUR)                        |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Intervention storage of     | 23          | 125         | 300       |
| butter & cream (expenditure |             |             |           |
| related to the accession of |             |             |           |
| the 10 new member states is |             |             |           |
| estimated at 2 million EUR) |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Other measures relating to  | 410         | 425         | 459       |
| butterfat (expenditure      |             |             |           |
| related to the accession of |             |             |           |
| the 10 new member states is |             |             |           |
| estimated at 15 million     |             |             |           |
| EUR)                        |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Intervention storage of     | 41          | 54          | 68        |
| cheese                      |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| School milk (expenditure    | 80          | 81          | 74        |
| related to the accession of |             |             |           |
| the 10 new member states is |             |             |           |
| estimated at 6 million EUR) |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| **BEEF & VEAL**             |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Suckler-cow premiums        | 1 972       | 2 060       | 1 888     |
+-----------------------------+-------------+-------------+-----------+
| Additional premiums for     | 97          | 97          | 71        |
| suckler-cows                |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Special premiums            | 1 943       | 1 967       | 1 748     |
+-----------------------------+-------------+-------------+-----------+
| Slaughter premiums          | 1 750       | 1 710       | 1 025     |
+-----------------------------+-------------+-------------+-----------+
| Extensification premiums    | 1 020       | 1 018       | 943       |
+-----------------------------+-------------+-------------+-----------+
| Exceptional support         | 249         | 344         | 242       |
| measures                    |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Compulsory slaughter        | 50          | 100         | 68        |
| program                     |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Additional payments         | 483         | 483         | 295       |
+-----------------------------+-------------+-------------+-----------+
| Other intervention          | 124         | 100         | 330       |
+-----------------------------+-------------+-------------+-----------+
| **SHEEP & GOAT MEAT**       |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Ewe and she-goat premiums   | 1 066       | 1 346       | 417       |
+-----------------------------+-------------+-------------+-----------+
| Fixed flat-rate premiums in | 393         | 388         | 137       |
| less favored and mountain   |             |             |           |
| areas                       |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Additional payments         | 72          | 72          | \-        |
+-----------------------------+-------------+-------------+-----------+
| **PIG MEAT, EGGS &          |             |             |           |
| BEE-KEEPING**               |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Exceptional market support  | \-          | 11          | \-        |
| measures for pig meat       |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Special aid for bee-keeping | 17          | 17          | 14        |
+-----------------------------+-------------+-------------+-----------+
| Exceptional support         | 3           | \-          | \-        |
| measures for eggs           |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| **ANIMAL PRODUCTS (EXCL.    | **10 201**  | **10 887**  | **8 526** |
| EXPORT REFUNDS)**           |             |             |           |
+-----------------------------+-------------+-------------+-----------+

+-----------------------------+-------------+-------------+-----------+
| **TABLE 5:**                |             |             |           |
|                             |             |             |           |
| **EU EXPORT REFUNDS FOR     |             |             |           |
| AGRICULTURAL EXPORTS - in   |             |             |           |
| Million EUR**               |             |             |           |
+-----------------------------+-------------+-------------+-----------+
|                             | **App       | **App       | **Outturn |
|                             | ropriations | ropriations | 2002**    |
|                             | 2004**      | 2003**      |           |
+-----------------------------+-------------+-------------+-----------+
| Cereals (expenditure        | 158         | 104         | 99        |
| related to the accession of |             |             |           |
| the 10 new member states is |             |             |           |
| estimated at 79 million     |             |             |           |
| EUR)                        |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Rice                        | 32          | 32          | 41        |
+-----------------------------+-------------+-------------+-----------+
| Non-Annex I (cereals &      | 36          | 21          | 40        |
| rice)                       |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Sugar and isoglucose        | 1 285       | 1 257       | 1 168     |
+-----------------------------+-------------+-------------+-----------+
| Non-Annex I (sugar)         | 183         | 156         | 190       |
+-----------------------------+-------------+-------------+-----------+
| Olive oil                   | \-          | \-          | \-        |
+-----------------------------+-------------+-------------+-----------+
| Fruit & Vegetables          | 38          | 38          | 46        |
| (expenditure related to the |             |             |           |
| accession of the 10 new     |             |             |           |
| member states is estimated  |             |             |           |
| at 1 million EUR)           |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Products of the             | 25          | 25          | 24        |
| wine-growing sector         |             |             |           |
| (expenditure related to the |             |             |           |
| accession of the 10 new     |             |             |           |
| member states is estimated  |             |             |           |
| at 1 million EUR)           |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Milk and Milk Products      | 1 634       | 1 568       | 1 160     |
+-----------------------------+-------------+-------------+-----------+
| Non-Annex I (milk and       | 193         | 232         | 179       |
| butter)                     |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Beef and Veal (expenditure  | 354         | 534         | 387       |
| related to the accession of |             |             |           |
| the 10 new member states is |             |             |           |
| estimated at 22 million     |             |             |           |
| EUR)                        |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Pig meat                    | 38          | 78          | 27        |
+-----------------------------+-------------+-------------+-----------+
| Eggs                        | 9           | 8           | 6         |
+-----------------------------+-------------+-------------+-----------+
| Poultry meat (expenditure   | 91          | 91          | 71        |
| related to the accession of |             |             |           |
| the 10 new member states is |             |             |           |
| estimated at 15 million     |             |             |           |
| EUR)                        |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Non-Annex I (eggs)          | 3           | 6           | 5         |
+-----------------------------+-------------+-------------+-----------+
| **TOTAL EXPORT REFUNDS**    | **4 097**   | **4 150**   | **3 443** |
+-----------------------------+-------------+-------------+-----------+

Non-Annex I: goods obtained by processing agricultural products.

  ------------------------------ ------------------ ------------------ ------------
  **TABLE 6: FOOD PROGRAMS (in                                         
  Million EUR)**                                                       

                                 **Appropriations   **Appropriations   **Outturn
                                 2004**             2003**             2002**

  Programs for deprived persons  200                200                156
  (expenditure related to the                                          
  accession of the 10 new member                                       
  states is estimated at 16                                            
  million EUR)                                                         

  Food aid                       10                 16                 6

  **TOTAL**                      **210**            **216**            **162**
  ------------------------------ ------------------ ------------------ ------------

**OTHER POLICY AREAS**

+-----------------------------+-------------+-------------+-----------+
| **FISHERIES (TITLE 11 -- EU |             |             |           |
| Budget)**                   |             |             |           |
|                             |             |             |           |
| **SUMMARY OF APPROPRIATIONS |             |             |           |
| -- in Million EUR**         |             |             |           |
+-----------------------------+-------------+-------------+-----------+
|                             | **App       | **App       | **Outturn |
|                             | ropriations | ropriations | 2002**    |
|                             | 2004**      | 2003**      |           |
+-----------------------------+-------------+-------------+-----------+
| Administrative expenditure  | 39          | 32          | 30        |
+-----------------------------+-------------+-------------+-----------+
| Fisheries markets           | 30          | 14          | 26        |
+-----------------------------+-------------+-------------+-----------+
| International fisheries     | 173         | 184         | 190       |
+-----------------------------+-------------+-------------+-----------+
| Governance of the Common    | 2           | 2           | 1         |
| Fisheries Policy            |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Fisheries research          | 11          | 19          | 42        |
+-----------------------------+-------------+-------------+-----------+
| Structural interventions    | 567         | 579         | 743       |
| for fisheries               |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Fisheries conservation,     | 41          | 66          | 59        |
| control and enforcement     |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| **TOTAL**                   | **863**     | **901**     | **1 093** |
+-----------------------------+-------------+-------------+-----------+

+-----------------------------+-------------+-------------+-----------+
| **HEALTH & CONSUMER         |             |             |           |
| PROTECTION (TITLE 17 -- EU  |             |             |           |
| Budget)**                   |             |             |           |
|                             |             |             |           |
| **Chapter 17 04: Food       |             |             |           |
| safety, animal health,      |             |             |           |
| animal welfare and plant    |             |             |           |
| health**                    |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| **in Million EUR**          | **App       | **App       | **Outturn |
|                             | ropriations | ropriations | 2002**    |
|                             | 2004**      | 2003**      |           |
+-----------------------------+-------------+-------------+-----------+
| Animal disease eradication  | 136         | 136         | 161       |
| and monitoring programs     |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Other veterinary, animal    | 11          | 8           | 8         |
| welfare and public health   |             |             |           |
| measures                    |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Emergency fund for          | 40          | 40          | 51        |
| veterinary complaints and   |             |             |           |
| other animal contaminations |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Plant health measures       | 3           | 3           | 3         |
+-----------------------------+-------------+-------------+-----------+
| Creation of EFSA            | 27          | 8           | 3         |
+-----------------------------+-------------+-------------+-----------+
| **TOTAL**                   | **216**     | **194**     | **225**   |
+-----------------------------+-------------+-------------+-----------+

+-----------------------------+-------------+-------------+-----------+
| **HUMANITARIAN AID (TITLE   |             |             |           |
| 23 -- EU BUDGET)**          |             |             |           |
|                             |             |             |           |
| **Chapter 23 02 01: Food    |             |             |           |
| Aid -- in Million EUR**     |             |             |           |
+-----------------------------+-------------+-------------+-----------+
|                             | **App       | **App       | **Outturn |
|                             | ropriations | ropriations | 2002**    |
|                             | 2004**      | 2003**      |           |
+-----------------------------+-------------+-------------+-----------+
| Aid, including food aid, to | 472         | 426         | 510       |
| help developing countries   |             |             |           |
| and other countries hit by  |             |             |           |
| disasters or serious crises |             |             |           |
+-----------------------------+-------------+-------------+-----------+

**Visit our website:** our website
**[www.useu.be/agri/usda.html]{.underline}** provides a broad range of
useful information on EU import rules and food laws and allows easy
access to USEU reports, trade information and other practical
information. More information on the EU's Agriculture Budget can be
found at
[www.useu.be/agri/budget.html](http://www.useu.be/agri/budget.html).
E-mail: AgUSEUBrussels@usda.gov

**Related reports from USEU Brussels:**

  ------------------------------------------------------------ ------------------------------------ ------------------
  **Report Number**                                            **Title**                            **Date Released**

  E23223                                                       EU 2004 Budget: EUR 147 million to   11/21/2003
                                                               fight animal diseases                

  E23202                                                       EU proposes adapted CAP payments for 10/29/2003
                                                               enlargement states                   

  E23184                                                       EU formally adopts CAP Reform        9/30/2003

  E23140                                                       Preliminary Draft 2004 Budget        7/24/2003

  E23109                                                       Commission to recover EUR 169        6/17/2003
                                                               million of farm money                

  E23067                                                       EU 2003 Agriculture Budget           5/5/2003

  E23059                                                       CAP Reform -- Budget Impact          4/15/2003

  These reports can be accessed through our website                                                 
  [www.useu.be/agri](http://www.useu.be/agri) or through the                                        
  FAS website                                                                                       
  <http://www.fas.usda.gov/scriptsw/attacherep/default.asp>.                                        
  ------------------------------------------------------------ ------------------------------------ ------------------