Mr President, Commissioner, let me begin – as all the other group spokespersons have done – by expressing my warmest thanks to the two rapporteurs for their work this year. Mr Mulder and Mrs Gill have produced an outstanding report. I would also like to thank our Chairman of the Committee on Budgets once again for his cooperation over the last two years. He has said that he no longer wishes to chair the committee, but I am sure he will keep his seat in the next Parliament and the House will continue to benefit from his wit and wisdom, unless the British people are foolish enough not to re-elect him. However, I cannot imagine that the British would do such a thing. Of course they will re-elect him and then we will have him back again. Europe is being built by those who have a desire to create a future and bear responsibility. I think it is important to state this clearly at the present time. In order to achieve this goal, extraordinary patience and an ability to listen are essential, and extraordinary efforts must be made to achieve mutual understanding. Only if we listen to each other and seek to understand each other is it possible to achieve extraordinary things. In this respect, Europe’s citizens can depend on this House. Where others sow the seeds of discord, we have shown solidarity. Where others incite mistrust, we dare to build democracy and trust in each other’s ability. Where others instil fear, we offer fresh prospects, and where others vie for power, we seek compromises. The result is the ability to produce a budget like the one before us. It is thrifty, sound and forward-looking. Yes, it is thrifty, contrary to popular opinion. This morning, the President of this House, speaking in this debate, pointed out that over recent years, the total discretionary expenditure added by the Council amounts to EUR 33 billion, whereas Parliament, under its discretion, has added just EUR 21 million. In other words, we have exercised far more restraint in this area, and despite the frequent accusations, we are not the ones constantly stretching the budget. In fact, the 2004 budget represents a decrease of 0.26% for commitments for the EU of the Fifteen and, indeed, a reduction of 3% for payments. Even if we include the new countries in the equation, the staff-to-population ratio falls from 0.8 officials per 10 000 inhabitants to 0.7 per 10 000. Let me give you a comparison: according to the OECD, Spain, for example, has 388 officials per 10 000 inhabitants. This is the personnel basis on which we are shaping the future of the European Union. In other words, we are extremely thrifty, and we also exercise sound financial management. We want the funds to be spent on the purposes for which they are intended, which is why we exercise control over spending, firstly through the Committee on Budgetary Control, but also at the financing planning stage. That is why we set up reserves in various areas. This year, we have formed relatively few reserves. Those we have set up are linked to specific conditions. We will dissolve these reserves as quickly as possible, as soon as we know that the relevant measures have been adopted. Blind faith would be overly optimistic, while excessive mistrust would be paralysing. We are therefore adopting a middle way. As Social Democrats, we are trying to work with properly established and tightly restricted reserves. This budget also shows that we are future-oriented. That is why we in the Group of the ( Group) can say that we are very, very satisfied with the result. What we have achieved is that in future, we will be working through OLAF to combat VAT fraud in Europe. Here, financial resources that can be generated must be generated. Next year too, as in previous years, we will continue to promote small and medium enterprises, for they are the backbone of the European economy. We want to prepare for demographic change, as population levels are declining throughout Europe. In Spain and Italy, the population figures are already falling. In Germany, this will be the case from next year. This will have an impact on life in our communities. How will we target the Structural Funds to take account of the fact that in future, Europe will have around 15% fewer people? We need to find an answer to this question – and we cannot wait until the problem is upon us. We need to make preparations now. Under Heading 4: External Policies, we are in part consolidating existing measures. However, we will also master the new challenges. We will provide adequate funds for Iraq for measures which can actually be implemented. Nonetheless, we will still provide EUR 168 million for Afghanistan, and we will continue to participate in the funding of measures in the Balkans. What we need, however, is not just remedial aid after the event; we must also be working with an eye to the future. That is why we are pleased that we have been able to expand the resources for preventive measures: to promote human rights and democracy around the world and to combat ABC weapons and land mines. I would like to express my warmest thanks to everyone, including the Commissioner. I think we have a very good budget before us. Naturally, we will be voting for it. IN THE CHAIR: MR ONESTAVice-President

Political group: PSE