# EUR-Lex - 52007BP0131 - EN

Important legal notice

*|*

# 52007BP0131

**European Parliament resolution of 24 April 2007 on the Commission's annual policy strategy for the 2008 budget procedure (2007/2017(BUD)) **

*
Official Journal 074 E , 20/03/2008 P. 0280 - 0286 *

P6_TA(2007)0131

The Commission's annual strategic priorities (Budget 2008)

European Parliament resolution of 24 April 2007 on the Commission's annual policy strategy for the 2008 budget procedure (2007/2017(BUD))

The European Parliament,

- having regard to the Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions — Annual Policy Strategy for 2008 (COM(2007)0065),

- having regard to the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management [1],

- having regard to Article 272 of the EC Treaty and Article 177 of the Euratom Treaty,

- having regard to Rule 112(1) of its Rules of Procedure,

- having regard to the report of the Committee on Budgets and the opinions of the Committee on Foreign Affairs and the Committee on International Trade (A6-0123/2007),

A. whereas the EU budget for 2008 will be the second to be agreed in the framework of the Interinstitutional Agreement (IIA) on budgetary discipline and sound financial management agreed on 17 May 2006,

B. whereas the 2008 budget will be the first to be agreed with Romania and Bulgaria as members of the EU,

C. whereas the process of globalisation continues apace, with all of its attendant opportunities and challenges in the economic, social, and environmental spheres; whereas the 2008 budget must ensure that the EU continues to be in a position to benefit from the opportunities and meet the challenges of globalisation and to cope with its responsibility as a global actor through an appropriate mix of forward-looking internal and external policies,

D. whereas 2007 will be the first year of implementation of many new EU spending programmes for the 2007-2013 financial programming period, following the adoption of many new legal bases during 2006; whereas data on implementation of the 2007 budget, particularly in terms of commitment appropriations, will provide important information as to the capacity of the Commission and the Member States to implement Parliament's priorities,

Political context

1. Highlights that the 2008 budget will be prepared, presented and debated against a backdrop of the 50th anniversary of the signature of the Treaty of Rome and a renewed push to see progress on the Constitutional Treaty; notes that 2007 will see the start of preparatory work on the 2008-2009 full, wideranging review (mid-term review) of the 2007-2013 multi-annual financial framework (MFF); also notes its resolution of 29 March 2007 on the future of the European Union's own resources [2];

2. Underlines the importance it attaches to the capacity of an EU of 27 members to make globalisation an opportunity for its citizens and to lead international action in meeting the challenges that globalisation presents; highlights, in this context, the importance of ensuring that the EU's financial and human resources are appropriately allocated so as to secure the proper functioning of the EU;

3. Notes the proposals indicated by the Commission under the labels prosperity, solidarity, security, external projection; agrees that, at the same time, the EU must maintain its focus on the Lisbon agenda and specifically on sustainable development, growth and jobs, competitiveness and SMEs, and social cohesion; considers that, in many cases, such as the area of energy policy and climate change, these proposals are an example of a more flexible approach by the EU to engaging with the real challenges that European citizens face; points out however that, as a result of very small margins under the different ceilings of expenditure, the EU's capacity to react to policy changes in budgetary terms is extremely limited;

4. Considers it its responsibility as budgetary authority to ensure that the funding allocated to the EU budget is spent with a view to delivering value for money, in particular to optimise the limited resources; intends to pursue a budget for results building on the approach initiated in the 2007 budget in cooperation with the specialised committees;

5. Reiterates its call for the EU's annual policy priorities to be set out in a manner that can be effectively communicated to the citizens of Europe and stresses that this resolution sets out the views of the European Parliament as regards the forthcoming budgetary procedure; strongly regrets that the Annual Policy Strategy (APS) does not adequately reflect Parliament's priorities; expects to see due account taken of this resolution in the 2008 preliminary draft budget (PDB); emphasises that the various initiatives proposed by the Commission in the 2008 APS should be seen in the context of the very recently agreed spending programmes and political priorities that underpin the overall financial envelopes agreed for the 2007-2013 MFF in the IIA of 17 May 2006;

6. Notes the presentation by Commissioner Wallström to the Conference of Presidents on 8 February 2007 on the Commission's legislative and work programme for 2007 but regrets the lack of interaction between the Legislative Work Programme and the budget procedure; in line with the Framework Agreement on relations between the European Parliament and the Commission, insists upon a better coherence between the two procedures; reminds the Commission of its commitment made during the 2007 budget procedure and the letter from President Barroso of December 2006 concerning an improved matching of legislative priorities and budgetary decisions; in this context, takes note of the Commission priorities set out in the APS Communication and expects the Commission to adjust these priorities on the basis of the decisions to be taken by the budgetary authority in the course of the annual procedure;

A budget for results — transparent presentation, clear objectives, accurate implementation

7. Underlines once again the importance that it attaches to EU spending programmes effectively delivering on the political objectives which they were legislated to achieve; considers that policy delivery, and clear evidence thereof, has always been fundamental to the legitimacy of the EU in the eyes of its citizens; affirms its intention, therefore, to give to its work on the 2008 budget the philosophy of a "budget for results"; stresses that those results will not be assessed solely on the basis of accounting criteria and points out that this approach will be followed in a spirit of sound interinstitutional cooperation;

8. As a first step towards a budget for results, stresses the importance of clarity, consistency and transparency in the presentation of the budget; supports the Activity based budgeting (ABB) approach, which aims to match financial and human resources to political objectives according to the policy areas of Commission spending; notes that the ABB nomenclature is not easily reconciled with the categories of the MFF headings; further regrets that the APS classifications of prosperity, solidarity, security and external projection represent a third classification system that is rather arbitrary as regards the classification of policy areas under the different chapters, does not have any major value from a budgetary perspective and cannot easily be reconciled with the ABB and MFF categorisations; demands that the Commission respect more closely the ABB and MFF structures and provide clear indications on the correspondence between this third classification and the budgetary headings of the IIA of 17 May 2006;

9. Considers that the Activity Statements produced by the Commission for each policy area in the PDB constitute a key element in the effective oversight of EU spending by the budgetary authority; underlines that, if policy objectives are not clear, then effective policy evaluation is impossible; requests an improvement in the clarity of presentation of these Activity Statements in the 2008 PDB; demands greater focus on policy objectives and measurement of policy outcomes and less information on administrative process than has frequently been the case in previous PDB documents;

10. Underlines the importance of monitoring budget implementation as a tool for examining the delivery of policy; welcomes the recent improvements in the provision of data on implementation by the Commission and in particular the Budget Forecast Alert (BFA) system; notes that due to the BFA, initial implementation figures for the first year of spending of the new programmes for 2007-2013 will become available during 2007; considers that this information may prove useful in pushing the Commission and the Member States to respect fully the Parliament's political priorities defined in the 2007 budget and in this resolution;

Human resources — appropriate allocation, personal responsibility, monitored outsourcing

11. Is strongly of the view that an effective and cost-efficient administrative system for the European Union must be equipped with the necessary level of resources; awaits with interest the results of the screening exercise being carried out by the Commission services on the Commission's real staff needs that is due to be presented on 30 April 2007; is convinced that this screening of Commission staff is a key exercise allowing the Commission to identify its real potential and to provide more staff for the new political priorities such as energy, climate change, immigration, the implementation of multi-annual programmes and oversight of the transposition of EU law in the Member States; will evaluate the outcome of the screening in great depth in order to meet future political challenges starting from the 2008 budget procedure;

12. Welcomes the further indications in the 2008 APS of the Commission's efforts to re-direct its human resources towards political priorities but rejects the presentation of these priorities according to the labels prosperity, solidarity, security and external projection; therefore requests the Commission to set out clearly in the PDB, according to the ABB structure, further information regarding human resources policy and redeployment strategy for 2008, taking into account the results of the screening exercise;

13. Expresses its concern that the expansion of existing decentralised agencies will reduce the margins available under the headings of the MFF; is further concerned that this reduction in available margins will reduce the scope for funding new priorities, such as pilot projects and preparatory actions, and will also reduce the funds available for the expansion of existing programmes; notes that point 47 of the IIA of 17 May 2006 obliges the Commission to assess the budgetary implications for the expenditure heading concerned when drawing up a proposal for the creation of a new decentralised agency; will seek to ensure that the functioning of decentralised agencies brings added value and furthers the interests of EU citizens;

14. Notes that any further expansion in the number of executive agencies and other bodies would need to be financed from the relevant programme envelope; expresses its concern, therefore, that any further growth in executive agencies and other bodies may reduce the operational funds available within programme envelopes;

15. Is determined to clarify the definition, the role and the cost of all bodies defined under Article 185 of the Financial Regulation, to assess the cost-effectiveness of such modes of governance and to secure on a systematic basis at interinstitutional level the application of the procedure laid down in point 47 of the IIA of 17 May 2006 in the course of the 2008 annual budget procedure;

16. Considers that decentralisation of responsibilities to the different Directorates-General and personal responsibility of EU officials are an important element of the Activity-based management approach; notes that further work may be necessary to clarify some of the chains of responsibility within the EU institutions; considers that this issue is of particular importance in light of the apparent trend towards "outsourcing" or "externalisation" of implementation tasks to executive agencies and other ad hoc bodies;

17. Is concerned that the creation of executive agencies and other ad hoc bodies may lead to a growth in the number of EU officials and contractual agents, unless posts in the relevant Commission Directorate-General are reduced to offset the increase, and to a weakening of the oversight of the EU administration; requests the Commission to explain in the 2008 PDB how posts requested in new executive agencies and other ad hoc bodies will be offset by reductions in the responsible Directorate-General; further requests the Commission to address in the 2008 PDB the issue of appropriate oversight of executive agencies and other ad hoc bodies so as to ensure democratic accountability; urges an improvement of the Code of Conduct on the Setting-up of Executive Agencies, in particular as regards parliamentary scrutiny of financing and staffing of the agencies;

Multiannual Financial Framework — programming, margins, front- and back-loading

18. Takes note of the Commission's latest update of the financial programming 2007-2013; notes the limited, and in some cases decreasing, margins left under headings 1a and 3 and strongly opposes the Commission's proposal to use the small margins left available under these two headings for new initiatives; expresses its strong concern that additional margins would be created mainly by back-loading existing multiannual programmes; considers that the small margins limit the possibility of addressing efficiently any urgent or new political priority; asks the Commission to present at the next trialogue an overview of the margins in the different headings, and an update of the financial programming, in accordance with point 46 of the IIA of 17 May 2006, and the potential financial consequences of the proposals announced in the legislative programme;

19. Wishes to explore possibilities for a better presentation, facilitating easier and better understanding of the different financial programming and budget documents provided to the budgetary authority (financial programming and APS document); points out that, at the moment, there is neither a clear indication of the exact changes made compared to the previous financial programming in the tables annexed to the financial programming nor a clear indication of how increases are being compensated for or how back- and frontloadings are taking place;

20. Recalls that, as regards pilot projects and preparatory actions for the 2008 budget procedure, according to Annex II, Part D, of the IIA of 17 May 2006"both arms of the budgetary authority will inform the Commission by mid-June of their intentions"; expresses its concern that, in some headings and sub-headings of the budget, there may not be sufficient margins available for major new pilot projects and preparatory actions;

21. Notes with concern the possible impact of the changes that the Commission proposes to the financial programming in Section III of the 2008 APS on what are already small margins and/or operational programmes, especially as a result of increased funding for agencies or the creation of new funds; regrets that such proposals were presented less than one month after the most recent financial programming update; expects the Commission to present these proposals in due course in the 2008 PDB and next Financial Programming, especially if they would imply a change to the MFF;

22. Expresses its concern about the proposed back-loading of certain programmes in the 2008 APS and the problems that this may be storing up for future years of the MFF taking into account the problem of increasing RALs; further notes that in the 2007 budget, for its own priority areas, Parliament adopted commitment levels above the average level of commitments foreseen in the multi-annual programme envelopes for a number of programmes; observes that some degree of interinstitutional cooperation regarding front- and back-loading of commitments across the budget may be necessary to ensure a coherent programming of commitments over the duration of the MFF respecting the priorities of the Parliament as expressed in the IIA of 17 May 2006;

Specific points

23. Supports the Commission's intention to include the concepts of Better Regulation and the simplification of procedure in all new initiatives, reforms and working methods in order to make them more understandable for citizens; recalls that as stated in its resolution of 13 December 2006 on the Commission's legislative and work programme for 2007 [3], the implementation of the concept "Better regulation" should respect fully the principles and conditions laid down in its resolution of 16 May 2006 on the strategy for simplification of the regulatory environment [4];

24. Highlights that energy efficiency is a highly future-oriented priority for tackling the problem of climate change; agrees that such a policy requires a cross-cutting strategy and asks the Commission to continue to take decisive action towards this aim;

25. Welcomes the Commission's intention to undertake key actions in the field of research and innovation to bring forward the implementation of the Lisbon strategy in 2008; supports, in particular, the preparatory work in order to ensure that a decision to set up a European Institute of Technology (EIT) is adopted in the course of 2007; urges the Commission to come up with further clarification on the financing of the EIT and expects that its financing would be assured by additional financial appropriations, and not by reducing any financial resources of the FP7; awaits further information on the proposed Executive Agency for the management parts of FP7;

26. Welcomes the outcome of the trilogue held on 7 March 2007 on the financing of the Joint Undertaking for ITER and on the further development of the procedure foreseen by point 47 of the IIA of 17 May 2006, the conclusions of which are attached as Annex I to this resolution;

27. Is worried about the Commission's proposed "back-loading" for many of the new programmes under heading 1a; considers that this does not constitute a proper method of financial programming; requests the Commission to provide information on the effects this back-loading exercise has on all programmes including those for which the legal basis has not yet been adopted and the effects on the available margins for the forthcoming years; reminds the Commission that, according to point 37 of the IIA of 17 May 2006, the budgetary authority and the Commission are allowed to depart by up to 5% from the amount foreseen in the legislative act;

28. Calls upon the Commission, with a view to achieving enhanced solidarity and prosperity, to clarify its intentions regarding the financial programming of "Lifelong learning" and to treat it as a priority; considers that an increase in financial resources for four agencies (ERA, EMSA, EASA, GSA) should avoid any reduction in the TEN-T financial programme and therefore requests clarification on how the Commission intends to compensate the TEN-T programme in the years to come, so that the total financial envelope agreed for the TEN-Ts in the MFF is implemented;

29. Agrees with the Commission that 2008 will be crucial for European cohesion policy as the first full year of implementation of the new operational programmes 2007-2013; therefore hopes that cohesion policy will remain a priority for both arms of the budgetary authority during the 2008 budget procedure;

30. Takes note that the Commission proposes to decrease the margin for heading 2 by EUR 2 million in order to cover additional activities of the European Environment Agency; further notes the Commission's intention under heading 3a to increase the appropriations for Frontex by EUR 10900000 in 2008 and to reinforce funding for EUROJUST by an additional EUR 2500000 per year for the period 2008 to 2013; reminds the Commission that all of these increases have to be agreed by the budgetary authority within the framework of the annual budget procedure and/or by the legislative authority if it implies a change in the reference amounts of adopted programmes;

31. Reminds the Commission that, under the IIA of 17 May 2006, most financial resources for the environment policy areas are concentrated under heading 2; notes the IIA decision to distribute an additional EUR 100 million to heading 2, of which EUR 50 million are being reserved for the new financial instrument for the environment LIFE+; recalls that a final agreement on LIFE+ for the years 2007-2013 was reached on 27 March 2007; stresses the importance of leaving sufficient margins until all pending legislative procedures are completed;

32. Expects precise proposals from the Commission as regards the mid-term review of the Common Agricultural Policy; asks therefore to be informed about the arrangements for and scope of the mid-term review the Commission intends to conduct with a view to assessing the initial results of the 2003 reform;

33. Considers that the core business of communication and information policy is to inform the EU citizens on the actions and programmes realised by the EU and the improvements generated over recent years; is of the opinion that the campaign on political priorities should be defined at a later stage of the budgetary procedure taking into account Parliament's priorities and focusing on policy areas duly identified at the time of the first reading;

34. Recalls that all Institutions have the right to implement communication policy as part of their institutional autonomy, as established in Article 49 of the Financial Regulation; encourages the Commission to continue to defend, as the other Institutions do, its own autonomy in this matter; recognises the need for coordination of the different communication policies implemented by the Institutions within the Interinstitutional group on information and communication; calls on the Interinstitutional group to present a more concrete and coordinated working plan for 2008 by the end of October 2007; in this regard, invites the Commission to remain ambitious concerning its communication policy towards citizens, bearing in mind that 2008 is the year preceding the next European elections and the need to prepare the ground for the expected re-launch of the institutional reform;

35. Notes the Commission's Communication Priorities for 2008 which will not change the financial programming for heading 3b;

36. Broadly endorses the objectives for external actions as set out in the APS, which have been developed on a continuity basis and which are to be implemented, for the second year, through the new set of EU external instruments adopted in 2006; puts major emphasis on effective implementation and respect for Parliament's rights within this framework; calls for a first assessment of its launch already in the second half of 2007;

37. Looks forward to meaningful cooperation with the Commission in the framework of working groups established by the Committee on Foreign Affairs and the Committee on Development to monitor the programming and implementation of the new external assistance instruments; notes the envisaged mid-term review of the functioning of the external assistance instruments; reiterates Parliament's will to be fully involved in this process;

38. Stresses the importance of multilingualism as a fundamental part of the European heritage, as well as the need for citizens to be provided with information in their own mother tongues;

39. Asks for further reinforcement of cooperation with the developing countries, in particular on climate change and migration, with continuous commitments for fulfilling the Millennium Development Goals especially in basic health and basic education;

40. Notes the Commission's concept of an "external projection of priorities", such as the Global Energy Efficiency Renewable Energy Fund (GEEREF) or the Global Climate Policy Alliance, and the fact that these new priorities in heading 4 appear to require a EUR 23100000 reinforcement in 2008; insists, however, upon clarity concerning the origin of the proposed funding for each action;

41. Notes that the overall margin forecast for heading 4 is EUR 334 million in order to allow for an adequate response to future needs, such as the outcome of negotiations on the final status of Kosovo and the Middle-East Peace process; emphasises strongly that this margin of EUR 334 million is, in fact, artificially high insofar as it contains EUR 200 million originally foreseen for the Guarantee Fund for loans, which will now only need to be provisioned as from 2009 for transitional reasons; underlines, therefore, that an extra EUR 200 million is available in 2008 on an exceptional basis and urges caution that this is not automatically allocated to longer-term needs which could not then necessarily be financed in later years;

42. Notes an increased focus in the APS on linking external and internal objectives, and the use of the term "full coherence"; takes the view that this issue merits further analysis and explanation by the Commission, especially given that one of the main criticisms of EU policy in the past has been an alleged lack of coherence between external and internal policies; further underlines the importance of democracy and positive change in partner countries and regions;

43. Insists that funding allocations in all external and enlargement instruments reflect the priority given by the EU to support for democracy and human rights, including minority rights;

44. Notes that the Commission plans to conclude Economic Partnership Agreements (EPAs) with ACP countries in 2007; asks the Commission and the Member States to provide further help to support ACP countries in the transition period from the current trade regime to EPAs;

45. Considers that the rapidly evolving situation in the field of the Common Foreign and Security Policy (CFSP) merits continuous scrutiny and cooperation between the institutions; underlines, in this respect, the importance it attaches to the fulfilment of the CFSP provisions in the IIA of 17 May 2006 and the tools provided therein; considers that the foreign policy and the linked financial resources needed can only be properly assessed once the Council has consulted Parliament, by 15 June 2007, on the main aspects and basic choices of the CFSP;

46. Notes the Commission's proposal for the allocation of human resources in 2008, which includes 890 new posts related to recent enlargements; recalls that 2008 is the final year of the human resources plan related to the 2004 enlargement, according to which 640 additional posts are requested for 2008; further recalls that 250 new posts following the enlargement to Bulgaria and Romania are requested for 2008, with a similar request expected in 2009; notes that only 50 % of the additional posts for 2008 are due to be allocated to the extension of activities due to the recent enlargements; considers that the Commission's review of human resources should be in line with the Better Regulation strategy initiated in 2006 while fully taking into account the need for proper and efficient implementation of the new spending programmes for the 2007-2013 financial programming period;

47. Welcomes the principle of the redeployment of staff according to political priorities but considers that the rate of redeployment should be more ambitious than 1%; recalls that this redeployment must take full account of the priorities identified by Parliament; expects the Commission to take the opportunity of the ongoing screening exercise to make a significant shift in the prioritisation of staff allocation and the proportion of overhead; will assess the level of Commission staff needs in the global context of heading 5 during the annual budgetary procedure; notes the Commission's proposed redeployment of 565 staff, with 287 redeployed between departments and 278 redeployed within departments; requests the Commission to supply more detailed information in the PDB regarding the redeployment of staff so that Parliament has the necessary information to assess whether the 1% target is an appropriate target; considers that the creation of a central redeployment pool should be in line with the principle of administrative simplification, and better delivery of programmes and actions while avoiding unnecessary administrative burdens;

48. Takes note of the trilogue of 18 April 2007 and the agreement that was reached between the three institutions on Community bodies falling under Article 185 of the Financial Regulation; welcomes the positive attitude of the Council in favour of better control and assessment of agencies; underlines the importance of the issues highlighted such as the operational/administrative expenditure ratio, discharge procedure, assessment, evaluation and cost-effectiveness of existing agencies, and the importance of further progress in relation to the procedure under point 47 of the IIA of 17 May 2006; notes that a procedural approach, as set out in the statements attached as Annex II to this resolution, in line with the provisions of the Financial Regulation, has been found to allow urgent transfers in favour of the Rapid Border Intervention Teams (RABIT); underlines the need to have a broader discussion on issues related to Commission governance methods in connection with the outcome of the Commission's screening exercise that is due to be completed on 24 April 2007;

49. Considers that the opinions of the Committees on Foreign Affairs and on International Trade contributed important elements to be taken into consideration during the 2008 budget procedure;

*

- *

50. Instructs its President to forward this resolution to the Council, the Commission and the Court of Auditors.

[1] OJ C 139, 14.6.2006, p. 1.

[2] Texts Adopted, P6_TA(2007)0098.

[3] Texts Adopted, P6_TA(2006)0565.

[4] OJ C 297 E, 7.12.2006, p. 136.

--------------------------------------------------

ANNEX I

TRILOGUE 7 MARCH 2007

Conclusions

The trilogue meeting was organised in application of point 47 of the Interinstitutional Agreement (IIA) on budget discipline and sound financial management of 17 May 2006.

These conclusions are meant to take stock of the agreement reached by the three institutions.

1. Joint Undertaking for ITER

The European Parliament and Council agreed that:

- the ITER Joint Undertaking is to be considered as a Community agency for the purpose of the application of point 47 of the IIA;

- the European Parliament will be given responsibility for the discharge of the implementation of the budget of ITER Joint Undertaking

The European Parliament and Council acknowledged the Community contribution to ITER stemming from the 7th Framework Programme for Euratom (EUR 986 million [1] for the period 2007-2011 as a maximum) as proposed by the Commission. While noting that the ITER project is planned to continue well beyond 2011, and the need to continue till 2041, the corresponding amounts for the years 2012 and 2013 are foreseen in the financial programming. The future financing will be part of the discussions on the next financial framework.

2. Agencies

With the aim of optimizing the functioning of existing agencies and the procedures applicable to the creation of new agencies, the European Parliament, the Council and the Commission agree to pursue an in depth discussion, in particular regarding a thorough cost/benefit assessment, including administrative costs, before the setting up of new agencies and the implementation of the review clauses foreseen in the specific regulations of the existing ones.

In this context, they express their willingness to work towards continuing and deepening the discussion on the further development of the procedure foreseen by Point 47 of the IIA.

These discussions will be pursued during the forthcoming Trilogues, the first being on 18 April 2007.

[1] Out of an indicative total EU budget contribution to the Joint Undertaking for ITER and the development of fusion energy of EUR 1290 million.

--------------------------------------------------

ANNEX II

STATEMENTS FOLLOWING THE TRILOGUE OF 18 APRIL 2007

1. Statement of the European Parliament and the Council on Community agencies

"1. For better clarity and transparency, the two arms of the budgetary authority invite the Commission to provide annually with the Preliminary Draft Budget a budgetary overview covering all existing and future Community agencies, other bodies falling under Article 185 of the Financial Regulation and executive agencies. This overview should include budgetary information regarding their basic acts, key budgetary indicators and staff numbers and the ratio between operational and administrative expenditure.

2. The two arms of the budgetary authority remind the Commission to apply a thorough cost/benefit analysis and to strictly respect and foster the procedure foreseen by Point 47 of the IIA before setting up new agencies.

3. As regards the decentralised agencies, the two arms of the budgetary authority remind the Executive Directors and Management Boards of those agencies of their responsibility to present realistic budget demands, in line with real needs and avoiding over-budgeting.

4. The two arms of the budgetary authority invite the Commission to regularly evaluate the existing Community agencies, focusing particularly on their cost/benefit, and agree to assess the evaluation of the analysis prepared by the Commission for a selected number of agencies. Criteria for the selection of agencies to be assessed could be exceeding a defined operational/administrative expenditure ratio, agencies showing particular problems in the Court of Auditors' reports and in the discharge procedure. The results of these analyses, and possibly others to be conducted by other institutions, should be reviewed each year at the Trilogue in October at the latest.

5. The two arms of the budgetary authority invite the Commission to implement the review clauses foreseen in their specific regulation. The budgetary authority will assess whether the existing strategy on decentralised agencies should be pursued.

6. Further to the conclusions of the Trilogue of 7 March 2007 in view of the further development of the procedure foreseen by Point 47 of the IIA of 17 May 2006, the institutions agree, in principle, to set up a procedure implementing Point 47 of the IIA in the framework of the forthcoming Trilogues."

2. Statement of the European Parliament, the Council and the Commission on Frontex

"The European Parliament, the Council and the Commission stress that in the case of a situation of urgent and exceptional pressure at the external border requiring the intervention of a Rapid Border Intervention Team (Rabit) and possible insufficiency of financial means in the budget of the European Agency for the Management of Operational Cooperation at the external borders of the Member States of the European Union (Frontex) to do so, all possibilities to ensure funding should be explored. The Commission will verify with extreme urgency whether a possible redeployment of funds could be made. Should a decision of the budgetary authority become necessary, the Commission will initiate a procedure that is in accordance with the provisions of the Financial Regulation, namely Articles 23 and 24, in order to secure a timely decision of the two arms of the budgetary authority on the means to provide for additional funding for Frontex to deploy a Rabit team. The budgetary authority commits itself to act as quickly as possible taking into account the urgency."

--------------------------------------------------