Mr President, ladies and gentlemen, Parliament's preliminary estimates for 2005 have been deliberated in detail by the Committee on Budgets and the groups have reached agreement, by an overwhelming majority, on the report before you. I would like to extend my warm thanks to everyone involved for this good cooperation. I will therefore only focus on a few specific aspects here. The 2005 estimates are based on the following key parameters: full 12 months of enlargement-related expenditure with nine new languages, and of course, if the outcome of this week's referendum in Cyprus is positive, a tenth new language will be added; 44 working weeks, of which three constituency weeks, 12 ordinary part-sessions and six additional part-sessions; a 2.7% salary adjustment, and a 7% standard abatement for posts. Due to the specific situation arising in the drafting of the estimates for 2005 this year, with the forthcoming enlargement on 1 May and the European elections in June, a number of issues and uncertainties are still outstanding which cannot be resolved until shortly before the first reading in September this year. Political priorities: the priority is to satisfy the needs relating to enlargement despite the financial constraints in Heading 5 in 2005. I view the main objective for 2005 as achieving sound financial management and budgetary rigour and providing value for money for the European taxpayer. The estimates for the 2005 budget, taking into account the budgetary constraints and uncertainties, must therefore be based on sound assumptions and real needs. The general framework: the preliminary draft estimates have been set at 20% of Heading 5, namely EUR 1 272 million. Of this figure, an amount of EUR 1 007.6 million is foreseen for standard operational expenditure and EUR 173.4 million for enlargement-related needs. In light of the positive experiences with capital injections and accelerated repayment of buildings, which have produced major savings in recent years, it would seem sensible to use a part of the appropriations available in the budget for an advance payment for the D4 and D5 buildings in 2005. Expenditure related to Members and political groups: no appropriations, on the line or in the reserve, are foreseen for a Member's Statute, but chapter 102 (Reserve for the Member's Statute) is maintained with a token entry (p.m.). This House should continue to support the adoption of a Statute for Members' assistants. Furthermore, the level of the Secretariat allowance should be assessed, and a Code of Conduct governing the use of the Secretariat allowance should be produced. Ladies and gentlemen, let me turn now to one of the four amendments which have been tabled. Unfortunately, my fellow Member, Mr Balfe, whom I greatly respect, is not here. I would therefore ask our fellow Members in the Group of the (PPE- Group) to bring their influence to bear on him once more so that he withdraws his amendment. The reason is that there are still a number of financial issues to be clarified. We can reach a consensus on the matter itself, but it is ultimately inopportune to take a decision based on a report which does not show all the appropriations. That is the reason why I would ask you to bring your influence to bear so that this particular amendment is withdrawn tomorrow. IN THE CHAIR: MR FRIEDRICHVice-President

Political group: PSE