DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 16 December 1999

to use the flexibility instrument for the financing of the reconstruction of Kosovo

(2000/C 41/01)

THE EUROPEAN PARLIAMENT,

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to the Interinstitutional Agreement of 6 May 1999 between the European Parliament, the Council and the Commission, on budgetary discipline and improvement of the budgetary procedure(1), and in particular paragraph 24 thereof,

Having regard to the proposal for mobilisation of the flexibility instrument submitted by the Commission on 10 November 1999,

Whereas:

(1) At the conciliation meeting held on 25 November 1999 in the presence of Commission representatives, the European Parliament and the Council were obliged to note that the Commission was not yet in a position to submit a year-by-year evaluation of the needs for Kosovo and the needs of the Balkans in general beyond the year 2000. They again called on the Commission to submit a precise multiannual evaluation of these needs for the whole of the period concerned, together with the necessary proposals for funding, including, if necessary, a proposal for revision of the financial perspective. These proposals would be made before submission of the preliminary draft budget for the financial year 2001 so as to enable the institutions to reach agreement before the Council's vote on the draft budget for 2001.

(2) In the meantime, the European Parliament and the Council set the amount of resources needing to be made available for the reconstruction of Kosovo at a maximum of EUR 360 million in commitment appropriations for the financial year 2000.

(3) In order to help cover this need, the Commission considered that it would be possible to carry over from the 1999 budget commitment appropriations of EUR 30 million from Obnova and EUR 30 million from humanitarian aid. The European Parliament and the Council therefore agreed to enter EUR 300 million in commitment appropriations in the general budget of the European Communities for the financial year 2000 for the reconstruction of Kosovo, of which EUR 40 million would be made available through redeployment (transfers of appropriations) under heading 4.

(4) In order to finance this additional need, which arose after the submission of the preliminary draft budget for the financial year 2000, the Commission first examined all possibilities for reallocating appropriations under heading 4 of the financial perspective, in accordance with paragraph 24, fourth subparagraph, of the Interinstitutional Agreement of 6 May 1999.

(5) The Commission indicated that EUR 60 million proposed for Obnova in the preliminary draft budget for 2000 and EUR 20 million requested for humanitarian aid could be used for Kosovo. The European Parliament and the Council agreed to this solution and noted that as a result EUR 220 million in commitment appropriations remained to be funded.

(6) In addition, the Commission identified possible redeployment under heading 4 of the financial perspective, amounting to EUR 180 million in commitment appropriations. With the aim in particular of easing the burden on the poorer countries and enabling the European Union to finance its traditional priorities, the European Parliament and the Council have agreed to restrict these deployments under heading 4 of the financial perspective to EUR 150 million in commitment appropriations, as opposed to Parliament's first reading.

(7) After examining all possibilities for reallocating appropriations under heading 4 of the financial perspective, the Commission proposed, inter alia, that the flexibility instrument should be used for a sum of EUR 60 million.

(8) The European Parliament and the Council noted that the balance of the needs could not be financed by means of redeployment. Nevertheless, they noted that, in the absence of a precise evaluation of the needs for each year of the period concerned, at this stage the problem arose only for the financial year 2000 and concerned a limited amount.

(9) The European Parliament and the Council, noting that the conditions laid down in paragraph 24 of the Interinstitutional Agreement had been met, therefore decided by common agreement, in accordance with the voting rules laid down in Article 272(9), fifth subparagraph, of the Treaty establishing the European Community, to use the flexibility instrument to finance the balance of the needs created by the reconstruction of Kosovo which cannot be met by carrying over appropriations from the 1999 budget or by redeployment of appropriations entered in the draft budget for the financial year 2000.

HEREBY DECIDE THAT:

Article 1

Use will be made by common agreement of the flexibility instrument provided for in paragraph 24 of the Interinstitutional Agreement of 6 May 1999 on budgetary discipline and improvement of the budgetary procedure for a sum of EUR 200 million.

Article 2

This sum is intended to cover part of the commitment appropriations entered against budget line B7-5 4 6 "Aid for the reconstruction of Kosovo" of the general budget of the European Communities for the financial year 2000.

Article 3

This decision shall be published in the Official Journal of the European Communities at the same time as the budget for the financial year 2000.

Done at Brussels, 16 December 1999.

For the European Parliament

The President

For the Council

The President

(1) OJ C 172, 18.6.1999, p. 1.

Declarations

1. The Commission confirms that by April 2000 it will propose an aid programme for the western Balkans, including Kosovo for the period 2000 to 2006. The amount concerned will require it to submit a proposal for revision of the financial perspective, together with a programming plan for heading 4.

2. The European Parliament and the Council agree that an aid programme for the western Balkans must be established. They take note of the fact that, if a sum requiring a financial effort significantly greater than that already programmed were to be agreed, this would entail exceeding the current ceilings for heading 4 of the financial perspective.

3. The European Parliament undertakes to leave a margin of EUR 20 million under the ceilings for heading 4 and, if necessary, by means of redeployment, to enter an amount of EUR 40 million for the reconstruction of Kosovo in particular, before the Council's first reading of the draft budget for 2001, this to be done by means of transfers of appropriations. The European Parliament undertakes also to reduce payment appropriations compared to its first reading by EUR 2,0 billion.