FINAL ADOPTION OF AMENDING BUDGET No 3 OF THE EUROPEAN UNION FOR THE 2005 FINANCIAL YEAR

CONTENTS

STATEMENT OF REVENUE AND EXPENDITURE BY SECTION

Section III: Commission

SECTION III

COMMISSION

EXPENDITURE

Title Heading Appropriations 2005 Amending budget No. 3 New amount Commitments Payments Commitments Payments Commitments Payments 01 ECONOMIC AND FINANCIAL AFFAIRS 452 732 509 462 854 009 452 732 509 462 854 009 02 ENTERPRISE 393 303 419 399 288 419 393 303 419 399 288 419 03 COMPETITION 88 839 252 88 839 252 88 839 252 88 839 252 04 EMPLOYMENT AND SOCIAL AFFAIRS 11 577 354 556 9 058 458 825 11 577 354 556 9 058 458 825 05 AGRICULTURE AND RURAL DEVELOPMENT 53 722 123 633 52 484 803 811 53 722 123 633 52 484 803 811 06 ENERGY AND TRANSPORT 1 413 397 334 1 346 158 134 1 413 397 334 1 346 158 134 07 ENVIRONMENT 322 320 776 319 290 776 322 320 776 319 290 776 08 RESEARCH 3 299 731 056 2 525 607 306 3 299 731 056 2 525 607 306 09 INFORMATION SOCIETY 1 335 651 319 1 181 111 319 1 335 651 319 1 181 111 319 10 DIRECT RESEARCH 366 422 464 348 310 914 366 422 464 348 310 914 11 FISHERIES 1 029 744 589 927 155 514 1 029 744 589 927 155 514 12 INTERNAL MARKET 73 349 263 72 749 263 73 349 263 72 749 263 13 REGIONAL POLICY 27 103 707 247 20 916 865 535 27 103 707 247 20 916 865 535 14 TAXATION AND CUSTOMS UNION 119 785 688 114 301 688 119 785 688 114 301 688 15 EDUCATION AND CULTURE 941 251 284 869 019 404 941 251 284 869 019 404 16 PRESS AND COMMUNICATION 185 012 786 176 001 686 185 012 786 176 001 686 17 HEALTH AND CONSUMER PROTECTION 513 511 715 516 164 510 513 511 715 516 164 510 18 AREA OF FREEDOM, SECURITY AND JUSTICE 578 452 580 566 255 804 578 452 580 566 255 804 19 EXTERNAL RELATIONS 3 061 836 673 3 281 150 276 15 000 000 3 076 836 673 3 281 150 276 20 TRADE 76 234 391 77 254 391 76 234 391 77 254 391 21 DEVELOPMENT AND RELATIONS WITH AFRICAN, CARIBBEAN AND PACIFIC (ACP) STATES 1 235 215 936 1 315 772 436 1 235 215 936 1 315 772 436 22 ENLARGEMENT 1 853 819 158 2 681 549 158 1 853 819 158 2 681 549 158 23 HUMANITARIAN AID 513 098 157 515 460 657 513 098 157 515 460 657 24 FIGHT AGAINST FRAUD 61 395 038 58 235 038 61 395 038 58 235 038 25 COMMISSION'S POLICY COORDINATION AND LEGAL ADVICE 209 126 692 207 311 692 209 126 692 207 311 692 26 COMMISSION'S ADMINISTRATION 647 663 022 647 663 022 647 663 022 647 663 022 27 BUDGET 1 385 620 356 1 385 620 356 1 385 620 356 1 385 620 356 28 AUDIT 10 602 470 10 602 470 10 602 470 10 602 470 29 STATISTICS 131 296 575 126 078 575 131 296 575 126 078 575 30 PENSIONS 899 771 000 899 771 000 899 771 000 899 771 000 31 RESERVES 557 192 789 325 722 789 557 192 789 325 722 789 Expenditure D — Total 114 159 563 727 103 905 428 029 15 000 000 114 174 563 727 103 905 428 029

TITLE 05

AGRICULTURE AND RURAL DEVELOPMENT

Overall objectives

The objectives of the common agricultural policy (CAP) derive directly from the Treaty and are, in particular, to stabilise markets, ensure a fair standard of living in the farming community and guarantee security of supplies.

The CAP has been reformed a number of times since it was first introduced, most recently with the agreement signed in June 2003 in Luxembourg. The key aim of that reform, as part of Agenda 2000, was to shift the slant of the farm economy towards the market in order to make the agricultural sector more competitive. Reflecting the multipurpose application of agricultural activity, the CAP must also be fully compatible with sustainable development, in particular by promoting environmentally friendly production methods and the effective use of resources. Rural development, the second pillar of the CAP, aims at enhancing the competitiveness of rural areas and preserving the environment and rural heritage in order to secure the future of rural areas and promote job maintenance and creation.

In 2005, the priorities for 2004 will be pursued, in particular as regards the implementation of the reforms adopted in 2003 and 2004, the operational application of the acquis in the new member countries and the World Trade Organisation (WTO) negotiations. These priorities are in addition to the regular activities of CAP.

Title Chapter Heading Appropriations 2005 Amending budget No. 3 New amount Commitments Payments Commitments Payments Commitments Payments 05 01 ADMINISTRATIVE EXPENDITURE OF AGRICULTURE POLICY AREA 149 945 773 149 945 773 149 945 773 149 945 773 05 02 PLANT PRODUCTS 29 134 620 000 29 134 620 000 29 134 620 000 29 134 620 000 05 03 ANIMAL PRODUCTS 13 683 780 000 13 683 780 000 13 683 780 000 13 683 780 000 05 04 RURAL DEVELOPMENT 10 771 477 860 9 194 072 038 10 771 477 860 9 194 072 038 05 05 SPECIAL ACCESSION PROGRAMME FOR AGRICULTURE AND RURAL DEVELOPMENT (SAPARD) 248 800 000 577 500 000 248 800 000 577 500 000 05 06 EXTERNAL RELATIONS 5 270 000 5 270 000 5 270 000 5 270 000 05 07 AUDIT OF AGRICULTURAL EXPENDITURE – 374 085 000 – 362 785 000 – 374 085 000 – 362 785 000 05 08 POLICY STRATEGY AND COORDINATION OF AGRICULTURE POLICY AREA 102 315 000 102 401 000 102 315 000 102 401 000 05 49 EXPENDITURE ON ADMINISTRATIVE MANAGEMENT OF PROGRAMMES COMMITTED IN ACCORDANCE WITH THE FORMER FINANCIAL REGULATION — p.m. — p.m. Title 05 — Total 53 722 123 633 52 484 803 811 53 722 123 633 52 484 803 811

CHAPTER 05 08 —

POLICY STRATEGY AND COORDINATION OF ‘AGRICULTURE’ POLICY AREA

Title Chapter Article Item Heading FP Appropriations 2005 Amending budget No. 3 New amount Commitments Payments Commitments Payments Commitments Payments 05 08 POLICY STRATEGY AND COORDINATION OF AGRICULTURE POLICY AREA 05 08 01 Farm accountancy data network (FADN) 3 14 000 000 14 000 000 14 000 000 14 000 000 Article 05 08 01 — Subtotal 14 000 000 14 000 000 14 000 000 14 000 000 05 08 02 Surveys on the structure of agricultural holdings 3 14 400 000 15 500 000 14 400 000 15 500 000 Article 05 08 02 — Subtotal 14 400 000 15 500 000 14 400 000 15 500 000 05 08 03 Restructuring of systems for agricultural surveys 3 7 615 000 6 601 000 7 615 000 6 601 000 Article 05 08 03 — Subtotal 7 615 000 6 601 000 7 615 000 6 601 000 05 08 04 Promotion measures — Payments by Member States 05 08 04 01 Promotion measures — Payments by Member States 1.1 48 500 000 48 500 000 48 500 000 48 500 000 Article 05 08 04 — Subtotal 48 500 000 48 500 000 48 500 000 48 500 000 05 08 05 Promotion measures — Direct payments by the European Community 05 08 05 01 Promotion measures — Direct payments by the European Community 1.1 11 000 000 11 000 000 11 000 000 11 000 000 Article 05 08 05 — Subtotal 11 000 000 11 000 000 11 000 000 11 000 000 05 08 06 Enhancing public awareness of the common agricultural policy 1.1 6 500 000 6 500 000 6 500 000 6 500 000 Article 05 08 06 — Subtotal 6 500 000 6 500 000 6 500 000 6 500 000 05 08 07 Completion of earlier measures in the field of information 3 p.m. p.m. p.m. p.m. Article 05 08 07 — Subtotal p.m. p.m. p.m. p.m. 05 08 08 External impact of Directive 2000/36/EC 3 300 000 300 000 300 000 300 000 Article 05 08 08 — Subtotal 300 000 300 000 300 000 300 000 05 08 99 Other 1.1 p.m. p.m. p.m. p.m. Article 05 08 99 — Subtotal p.m. p.m. p.m. p.m. Chapter 05 08 — Total 102 315 000 102 401 000 102 315 000 102 401 000

05 08 03

Restructuring of systems for agricultural surveys

Appropriations 2005 Amending budget No. 3 New amount Commitments Payments Commitments Payments Commitments Payments 7 615 000 6 601 000 7 615 000 6 601 000

The likely schedule of payments vis-à-vis commitments is as follows:

Commitments Payments 2004 2005 2006 2007 Subsequent years and others Pre-2004 commitments still outstanding 4 156 497 637 697 Commitment appropriations made available again and/or carried over from 2003 Appropriations 2004 100 504 810 3 046 000 997 800 Appropriations 2005 7 615 000 2 917 303 3 915 000 782 697 Total 112 276 307 6 601 000 4 912 800 782 697

Remarks

This appropriation is intended to cover:

— expenditure on the improvement of systems of agricultural statistics in the Community,

— subsidies, contractual expenditure and expenditure involving repayments for services connected with the carrying-out of enquiries and statistical or economic studies in the fields of agriculture, agrienvironment and rural development,

— subsidies, contractual expenditure and expenditure involving repayments for services connected with the purchasing and the consulting of databases,

— subsidies, contractual expenditure and expenditure involving repayments for services connected with agricultural sector modelling and short- and medium-term forecasts of market and agricultural structure trends, and with the dissemination of results,

— subsidies, contractual expenditure and expenditure involving repayment for services connected with the carrying out of economic analysis and development of indicators in the field of agriculture policy,

— subsidies, contractual expenditure and expenditure involving repayments for services connected with the implementation of operations for applying remote sensing, area sampling and agrometeorological models to agricultural statistics.

Legal basis

Preparatory actions within the meaning of Article 49(2) of Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (OJ L 248, 16.9.2002, p. 1).

Tasks arising from the prerogatives of the Commission at the institutional level, under the terms of Article 49 (2) c), from the regulation (EC, Euratom) no 1605/2002 of the Council at its meeting on 25 June 2002 on financial regulation applicable to the general budget of the European Communities (OJ L 248, 16.9.2002, p. 1).

Council Decision 96/411/EC of 25 June 1996 on improving Community agricultural statistics (OJ L 162, 1.7.1996, p. 14), as last amended by Decision No 787/2004/EC of the European Parliament and of the Council (OJ L 138, 30.4.2004, p. 12).

Decision No 1445/2000/EC of the European Parliament and of the Council of 22 May 2000 on the application of aerial-survey and remote-sensing techniques to the agricultural statistics for 1999 to 2003 (OJ L 163, 4.7.2000, p. 1), as last amended by Decision No 786/2004/EC (OJ L 138, 30.4.2004, p. 7).

TITLE 19

EXTERNAL RELATIONS

Overall objectives

The policy area External Relations seeks to support the objectives of the EU external policy by means of cooperation, development aid, conflict prevention and human rights programmes and projects. These objectives include, alongside development cooperation, promotion of the EU's identity on the international stage, notably through implementation of the common foreign and security policy.

Title Chapter Heading Appropriations 2005 Amending budget No. 3 New amount Commitments Payments Commitments Payments Commitments Payments 19 01 ADMINISTRATIVE EXPENDITURE OF EXTERNAL RELATIONS POLICY AREA 384 013 173 384 013 173 384 013 173 384 013 173 19 02 MULTILATERAL RELATIONS AND GENERAL EXTERNAL RELATIONS MATTERS 98 573 500 88 048 500 98 573 500 88 048 500 19 03 COMMON FOREIGN AND SECURITY POLICY 62 200 000 53 600 000 62 200 000 53 600 000 19 04 EUROPEAN INITIATIVE FOR DEMOCRACY AND HUMAN RIGHTS (EIDHR) 1 767 000 139 717 000 1 767 000 139 717 000 19 05 RELATIONS WITH NON-EU OECD COUNTRIES 16 000 000 17 000 000 16 000 000 17 000 000 19 06 RELATIONS WITH THE EASTERN EUROPE, THE CAUCASUS AND CENTRAL ASIAN REPUBLICS 483 580 000 563 650 000 483 580 000 563 650 000 19 08 RELATIONS WITH THE MIDDLE EAST AND SOUTHERN MEDITERRANEAN 1 047 673 000 921 298 353 1 047 673 000 921 298 353 19 09 RELATIONS WITH LATIN AMERICA 310 625 000 442 050 000 310 625 000 442 050 000 19 10 RELATIONS WITH ASIA 634 000 000 623 150 000 15 000 000 649 000 000 623 150 000 19 11 POLICY STRATEGY AND COORDINATION FOR EXTERNAL RELATIONS POLICY AREA 23 405 000 20 430 000 23 405 000 20 430 000 19 49 EXPENDITURE ON ADMINISTRATIVE MANAGEMENT OF PROGRAMMES COMMITTED IN ACCORDANCE WITH THE FORMER FINANCIAL REGULATION — 28 193 250 — 28 193 250 Title 19 — Total 3 061 836 673 3 281 150 276 15 000 000 3 076 836 673 3 281 150 276

CHAPTER 19 10 —

RELATIONS WITH ASIA

Title Chapter Article Item Heading FP Appropriations 2005 Amending budget No. 3 New amount Commitments Payments Commitments Payments Commitments Payments 19 10 RELATIONS WITH ASIA 19 10 01 Financial and technical cooperation with Asian developing countries 4 327 000 000 320 000 000 327 000 000 320 000 000 Article 19 10 01 — Subtotal 327 000 000 320 000 000 327 000 000 320 000 000 19 10 02 Political, economic and cultural cooperation with Asian developing countries 4 98 000 000 126 500 000 98 000 000 126 500 000 Article 19 10 02 — Subtotal 98 000 000 126 500 000 98 000 000 126 500 000 19 10 03 Aid to uprooted people in Asian countries 4 26 000 000 10 350 000 26 000 000 10 350 000 Article 19 10 03 — Subtotal 26 000 000 10 350 000 26 000 000 10 350 000 19 10 04 Rehabilitation and reconstruction operations in developing countries in Asia 4 p.m. 2 300 000 15 000 000 15 000 000 2 300 000 Article 19 10 04 — Subtotal p.m. 2 300 000 15 000 000 15 000 000 2 300 000 19 10 06 Aid for the rehabilitation and reconstruction of Afghanistan 4 183 000 000 164 000 000 183 000 000 164 000 000 Article 19 10 06 — Subtotal 183 000 000 164 000 000 183 000 000 164 000 000 Chapter 19 10 — Total 634 000 000 623 150 000 15 000 000 649 000 000 623 150 000

Remarks

The purpose of development cooperation under this heading is primarily its contribution to achieving the millennium development goals (MDGs), particularly Goal 1: to halve the proportion of people whose income is less than USD 1 per day and to halve the proportion of people who suffer from hunger before 2015. The MDGs give an overall benchmark for this.

For OECD Development Assistance Committee (DAC) list 1 countries, a benchmark of 35 % of annual commitments is allocated to social infrastructure, mainly education and health, but also including macroeconomic assistance with social sector conditionality. In this context the contribution from the EU budget should be seen as part of overall donor support to the social sector in any given country. A degree of flexibility should be the norm. A benchmark of 20 % of total annual commitments will be allocated to activities in the sector of basic health and basic education, including sectoral budget support to health and education ministries where it is to serve basic health and basic education.

Before July each year, the Commission must submit to the European Parliament and to the Council an annual report on development cooperation. This report must also contain information on how the work of the Commission has contributed to the 35 % target for social infrastructure and in achieving the MDGs. The report should also contain information on the state of donor coordination between the Member States and information on how budget support has contributed to the MDGs. Budget support will depend on prior demonstration of sufficient institutional capacity and compliance with detailed criteria for the custody and use of funds in the recipient country. The criteria must be stated in the annual report, and compliance therewith must be assessed in the report.

After the report has been presented the three institutions will enter into a dialogue on the results and on how further progress can be made towards achieving the objectives.

The cooperation agreements with the Asian developing countries lay down a human rights’ clause, failure to comply with which means that the agreements will be suspended. The Commission is called on to be scrupulous in making sure that that clause is complied with by beneficiaries when any project is funded. This appropriation also covers the protection and promotion of children's rights and the integration of children's rights into programming, including in the country strategy papers, national indicative programmes and mid-term reviews.

19 10 04

Rehabilitation and reconstruction operations in developing countries in Asia

Appropriations 2005 Amending budget No. 3 New amount Commitments Payments Commitments Payments Commitments Payments p.m. 2 300 000 15 000 000 15 000 000 2 300 000

The likely schedule of payments vis-à-vis commitments is as follows:

Commitments Payments 2004 2005 2006 2007 Subsequent years and others Pre-2004 commitments still outstanding 16 066 901 6 500 000 1 300 000 1 000 000 1 000 000 6 266 901 Commitment appropriations made available again and/or carried over from 2003 Appropriations 2004 4 125 000 2 000 000 1 000 000 1 000 000 125 000 Appropriations 2005 15 000 000 (1) Total 35 191 901 8 500 000 2 300 000 2 000 000 1 125 000 6 266 901

Remarks

This appropriation is intended to cover measures to initiate the return to a normal life of people in developing countries in the aftermath of critical situations arising out of natural disasters, violent conflicts or other crises. In particular, it will cover the post Tsunami reconstruction aid.

Operations covered will include:

— the relaunch of production on a lasting basis,

— the physical and operational rehabilitation of basic infrastructure, including mine clearance,

— social reintegration, in particular of refugees, displaced persons and demobilised troops,

— the restoration of the institutional capacities needed in the rehabilitation period, especially at local level,

— assisting with the needs of children, particularly rehabilitation of children affected by war, including child soldiers,

— supporting disabled people and disabled people's organisations to ensure that their particular needs are met in the context of rehabilitation operations,

— ensuring that the needs of women, children and older people are taken into account during disaster relief and reconstruction operations,

— raising awareness of the dangers posed by natural disasters and of measures designed to avoid them or to avoid or reduce their consequences.

In particular, operations may cover programmes and projects implemented by non-governmental development organisations and other civil society players who are encouraged to participate and, in turn, promote the participation of the beneficiary population at every level of the decision-making and implementation process.

Legal basis

Council Regulation (EEC) No 443/92 of 25 February 1992 on financial and technical assistance to, and economic cooperation with, the developing countries in Asia and Latin America (OJ L 52, 27.2.1992, p. 1).

Council Regulation (EC) No 2258/96 of 22 November 1996 on rehabilitation and reconstruction operations in developing countries (OJ L 306, 28.11.1996, p. 1).

(1) The ensuing payments appropriations will be requested by a transfer.