All amounts in this budget document are expressed in euro unless otherwise indicated.

Final adoption

of supplementary and amending budget No 5 of the European Union for the financial year 1999

(2000/260/EC, ECSC, Euratom)

THE PRESIDENT OF THE EUROPEAN PARLIAMENT,

Having regard to the Treaty establishing the European Community, and in particular Article 272(5), penultimate paragraph, and (7) thereof,

Having regard to the Treaty establishing the European Coal and Steel Community,

Having regard to the Treaty establishing the European Atomic Energy Community, and in particular Article 234(7) thereof,

Having regard to the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities(1), as last amended by Regulation (EC, ECSC, Euratom) No 2548/98(2), and in particular Article 15 thereof,

Having regard to the Interinstitutional Agreement on budgetary discipline and improvement of the budgetary procedure(3),

Having regard to the general budget of the European Union for the financial year 1999(4),

Having regard to preliminary draft supplementary and amending budget No 5 of the European Union for the financial year 1999 submitted by the Commission,

Having regard to draft supplementary and amending budget No 5 of the European Union for the financial year 1999 established by the Council on 15 November 1999,

Having regard to the debates and deliberations of the European Parliament of 18 November 1999,

Having regard to the resolution adopted by the European Parliament on 18 November 1999,

Having regard to the deliberations of the Council of 25 and 26 November 1999, which did not modify Parliament's amendment,

The procedure laid down in Article 272 of the Treaty establishing the European Economic Community and Article 234 of the Treaty establishing the European Atomic Energy Community having thus been completed,

DECLARES:

Sole Article

Supplementary and amending budget No 5 of the European Union for the financial year 1999 as set out in the Annex has been finally adopted.

Done at Strasbourg, 18 November 1999.

The President

Nicole Fontaine

(1) OJ L 356, 31.12.1977, p. 1.

(2) OJ L 320, 28.11.1998, p. 1.

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

(4) OJ L 39, 12.2.1999, p. 1.

Supplementary and amending budget no 5 of the european union for the financial year 1999

CONTENTS

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STAFF

Section III - Commission

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SECTION III

COMMISSION

General summary

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PART B

OPERATING APPROPRIATIONS

SUBSECTION B1

EUROPEAN AGRICULTURAL GUIDANCE AND GUARANTEE FUND, GUARANTEE SECTION

TITLE B1-1

PLANT PRODUCTS

Remarks

Expenditure on the common agricultural policy dealt with by the EAGGF Guarantee Section consists of refunds financed pursuant to Article 2 of Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural policy (OJ L 94, 28.4.1970, p. 13), as last amended by Regulation (EC) No 1287/95 (OJ L 125, 8.6.1995, p. 1), and intervention expenditure financed in accordance with Article 3 of that Regulation, the rules for financing being laid down in Council Regulation (EEC) No 1883/78 of 2 August 1978 on general rules for financing interventions by the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (OJ L 216, 5.8.1978, p. 1), as last amended by Regulation (EC) No 1259/96 (OJ L 163, 2.7.1996, p. 10).

The appropriations entered for the European Agricultural Guidance and Guarantee Fund, Guarantee Section have as a general rule been arrived at:

- on the basis of the rules now in force in each agricultural market,

- on the basis of forecasts of market developments.

CHAPTER B1-1 2 - OLIVE OIL

B1-1 2 3 Storage measures for olive oil

Remarks

Council Regulation No 136/66/EEC of 22 September 1966 on the establishment of a common organisation of the market in oils and fats (OJ 172, 30.9.1966, p. 3025/66), as last amended by Regulation (EC) No 1638/98 (OJ L 210, 28.7.1998, p. 32).

B1-1 2 3 2 Other public storage costs

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Remarks

This item is intended to cover other public storage costs in accordance with Articles 12 and 13 of Regulation No 136/66/EEC.

CHAPTER B1-1 5 - FRUIT AND VEGETABLES

B1-1 5 0 Fresh fruit and vegetables

Remarks

Council Regulation (EC) No 2200/96 of 28 October 1996 on the common organisation of the market in fruit and vegetables (OJ L 297, 21.11.1996, p. 1), as last amended by Regulation (EC) No 843/98 (OJ L 120, 23.4.1998, p. 10).

B1-1 5 0 1 Compensation for withdrawals and buying in

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Remarks

This appropriation is intended to cover expenditure on:

- financial compensation to producers' organisations, pursuant to Article 23 of Regulation (EC) No 2200/96,

- the processing and distribution of products withdrawn or bought in in accordance with Article 30 of the abovementioned Regulation.

It is also intended to cover expenditure on defraying transport, sorting and packaging costs in connection with free distribution of fruit and vegetables, in accordance with the provisions of Article 30(6) of Council Regulation (EC) No 2200/96 of 28 October 1996 on the common organisation of the market in fruit and vegetables (OJ L 297, 21.11.1996, p. 1).

TITLE B1-2

ANIMAL PRODUCTS

CHAPTER B1-2 1 - BEEF/VEAL

B1-2 1 1 Intervention storage of beef/veal

Remarks

Council Regulation (EEC) No 805/68 of 27 June 1968 on the common organisation of the market in beef and veal (OJ L 148, 28.6.1968, p. 24), as last amended by Regulation (EC) No 1633/98 (OJ L 210, 28.7.1998, p. 17).

B1-2 1 1 3 Other public storage costs

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Remarks

This item is intended to cover other public storage costs, and in particular the difference between the book value and the sale value, in accordance with Articles 5 to 7 of Regulation (EEC) No 805/68.

SUBSECTION B7

EXTERNAL ACTIONS

All contracts for outside staff charged to operating expenditure should be centralised and harmonised by a unit for the management and supervision of outside contracts under the responsibility of the Commissioner responsible for the budget.

TITLE B7-5

COOPERATION WITH COUNTRIES OF CENTRAL AND EASTERN EUROPE, THE NEW INDEPENDENT STATES AND MONGOLIA

CHAPTER B7-5 0 - COOPERATION WITH COUNTRIES OF CENTRAL AND EASTERN EUROPE

Remarks

Conclusions of the European Council in Lisbon on 26 and 27 June 1992.

Conclusions of the European Council in Copenhagen on 21 and 22 June 1993.

Conclusions of the European Council in Essen on 9 and 10 December 1994.

Conclusions of the European Council in Cannes on 26 and 27 June 1995.

Conclusions of the European Council in Madrid on 15 and 16 December 1995.

In accordance with the provisions of the abovementioned acts, the European Union pursues a policy of cooperation with the countries of central and eastern Europe, which is part of a European Union pre-accession strategy towards these countries. Furthermore, the appropriations of this Chapter are intended to cover the financing of accompanying measures for the pact for stability in Europe.

B7-5 0 0 Aid for economic restructuring of the countries of central and eastern Europe

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Remarks

Treaty establishing the European Community, and in particular Article 118b thereof.

Treaty of Amsterdam.

Council Regulation (EEC) No 3906/89 of 18 December 1989 on economic aid to the Republic of Hungary and the Polish People's Republic (OJ L 375, 23.12.1989, p. 11).

Council Regulation (EEC) No 2698/90 of 17 September 1990 amending Regulation (EEC) No 3906/89 in order to extend economic aid to other countries of central and eastern Europe (OJ L 257, 21.9.1990, p. 1) (Bulgaria, Romania, Czechoslovakia, Yugoslavia, German Democratic Republic).

Council Regulation (EEC) No 3800/91 of 23 December 1991, amending Regulation (EEC) No 3906/89 in order to extend economic aid to include other countries in central and eastern Europe (OJ L 357, 28.12.1991, p. 10) (Albania, Estonia, Latvia, Lithuania, excluding the German Democratic Republic).

Council Regulation (EEC) No 2334/92 of 7 August 1992 amending Regulation (EEC) No 3906/89 in order to extend economic aid to include Slovenia (OJ L 227, 11.8.1992, p. 1).

Council Decision 93/246/EEC of 29 April 1993 adopting the second phase of the trans-European cooperation scheme for higher education (Tempus II) (1994 to 1998) (OJ L 112, 6.5.1993, p. 34), as extended for the period 1998 to 2000 by Decision 96/663/EC (OJ L 306, 28.11.1996, p. 36).

Council Regulation (EEC) No 1764/93 of 30 June 1993 amending Regulation (EEC) No 3906/89 on economic aid for certain countries of central and eastern Europe (OJ L 162, 3.7.1993, p. 1) (Czech and Slovak Republics).

Council Decision 94/179/Euratom of 21 March 1994 amending Decision 77/270/Euratom, to authorise the Commission to contract Euratom borrowings in order to contribute to the financing required for improving the degree of safety and efficiency of nuclear power stations in certain non-member countries (OJ L 84, 29.3.1994, p. 41).

Council Regulation (EC) No 1366/95 of 12 June 1995 amending Regulation (EEC) No 3906/89 in order to extend economic aid to Croatia (OJ L 133, 17.6.1995, p. 1).

Council Regulation (EC) No 463/96 of 11 March 1996 amending Regulation (EEC) No 3906/89 with a view to extending economic assistance to the Former Yugoslav Republic of Macedonia (OJ L 65, 15.3.1996, p. 3).

Council Regulation (EC) No 753/96 of 22 April 1996 amending Regulation (EEC) No 3906/89 with a view to extending economic aid to Bosnia and Herzegovina (OJ L 103, 26.4.1996, p. 5).

Council Regulation (EC) No 622/98 of 16 March 1988 on assistance to the applicant States in the framework of the pre-accession strategy, and in particular on the establishment of Accession Partnerships (OJ L 85, 20.3.1988, p. 1).

Council Decisions 98/259/EC to 98/268/EC of 30 March 1998 on the principles, priorities, intermediate objectives and conditions contained in the accession partnerships with the Republic of Hungary, the Republic of Poland, Romania, the Slovak Republic, the Republic of Latvia, the Republic of Estonia, the Republic of Lithuania, the Republic of Bulgaria, the Czech Republic and the Republic of Slovenia respectively (OJ L 121, 23.4.1998, p. 1).

During the period 1990 to 1994, this appropriation was intended to assist the countries of central and eastern Europe in their transition to a market economy and democracy.

Following the Essen European Council, the role of the Phare programme has gradually evolved into that of an instrument of support to the applicant countries in their bid for accession. In implementing the Phare programme, therefore, the Commission must ensure that the beneficiaries of these measures respect European social policy and the fundamental social rights enshrined in the Social Charter on the basis of the acquis communautaire.

With a view to stepping up the pre-accession strategy as a whole, and in accordance with the guidelines laid down in Agenda 2000, Phare operations will be geared to two main priorities:

- institution building, so as to develop an effective capacity to implement the acquis communautaire, in particular by means of:

- the approximation of legislation,

- promoting consumer organisations,

- structural reforms and regional policies,

- promoting democracy and civil society and active cooperation in the fields of justice and home affairs,

- opening up Community programmes (see Article B7-5 0 3),

- investment financing, notably in order to help the candidate States comply with Community legislative standards.

This appropriation will also ensure the financing of a systematic gender impact assessment of operations under this article targeted at institution building and investment support.

Three types of operation are planned:

- contributions to a national fund to promote investments involving the acquis communautaire,

- co-financing of major infrastructure projects involving notably the European Investment Bank, the European Bank for Reconstruction and Development and the World Bank and, in the framework of the trans-European networks, the restructuring and modernisation of industry, energy, telecommunications, the environment and interregional cooperation projects,

- a horizontal facility for SMEs.

Approximately 30 % of the Phare budget is thus earmarked for the first priority, institution building, and some 70 % for infrastructure financing. These figures are for indicative purposes only and may vary according to the particular circumstances of the beneficiary State concerned, in particular as regards its requirements and absorption capacity.

The Commission will provide a breakdown four times a year by country and by sector of commitments and payments made.

Operations which until 1996 were financed under Article B7-8 4 0 are included under transport.

Measures taken in the area of nuclear security are intended in particular to cover the financing of technical and legal assistance necessary for the evaluation of the safety, environmental, economic and financial aspects of the projects for which financing in the form of a Euratom loan has been requested; the measures are also intended to enable loan contracts to be finalised and carried out. The Commission shall provide the budgetary authority with itemised information on the costs of this technical and legal assistance.

In accordance with the Sole Article of Decision 94/179/Euratom, any proceeds from undertakings in receipt of a loan under that decision will be entered against Item 6 1 9 1 of the statement of revenue and may be used to grant additional loans in line with the provisions of Article 96 (1) of the Financial Regulation.

This appropriation is intended also to cover the financing of one or more pilot projects on veterinary prevention and control in the countries bordering on the European Union.

This appropriation, up to an amount of EUR 3000000 is also intended to support and promote the development of modern and independent industrial relations systems and social dialogue in applicant countries as part of the process of institution building in those countries in the run-up to their accession to the European Union.

Within the context of reform of Phare towards greater decentralisation and on the basis of a time-limited approach, appropriations shall, in particular, finance information and training measures for trade union and employer organisations in the countries concerned, as well as supporting dialogue and exchange with the European social partners.

A maximum amount of EUR 10200000 may cover expenditure on studies, meetings of experts, information and publications directly linked to the achievement of the objective of the measure of which they form an integral part.

This article will also fund technical and administrative assistance, to both the Commission and the beneficiaries of the measures, which does not fall within the standing remit of public administration, covering the identification, preparation, management, monitoring, audit and supervision of the programme or project. Such technical and administrative assistance may only continue as long as the programme or project itself.

A maximum amount of EUR 53820000 is authorised for such expenditure.

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CHAPTER B7-5 3 - OTHER COMMUNITY MEASURES IN FAVOUR OF THE COUNTRIES OF CENTRAL AND EASTERN EUROPE AND THE NEW INDEPENDENT STATES

B7-5 3 2 Macrofinancial assistance to the countries of the western Balkans region

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Remarks

Proposal for a Council Decision providing supplementary macro-financial assistance to the former Yugoslav Republic of Macedonia (COM(1999) 404 final).

The purpose of this exceptional assistance is to ease the external financial constraints on certain non-member countries experiencing macroeconomic difficulties characterised by serious budgetary imbalances and/or balance-of-payments deficits.

It is directly linked to the implementation by the recipient countries of macroeconomic stabilisation and structural adjustment measures. Community action generally supplements that of the IMF coordinated with other bilateral donors.

The amounts entered in this Article are for measures on which a decision has already been taken. The amounts entered in the reserve are for other measures that have been proposed or are under preparation.

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CHAPTER B7-5 4 - COOPERATION WITH THE REPUBLICS FORMERLY PART OF YUGOSLAVIA

B7-5 4 1 Measures for the reconstruction of the Republics formerly part of Yugoslavia

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Remarks

Council Regulation (EC) No 1628/96 of 25 July 1996 relating to aid for Bosnia and Herzegovina, Croatia, the Federal Republic of Yugoslavia and the former Yugoslav Republic of Macedonia (OJ L 204, 14.8.1996, p. 1), as last amended by Regulation (EC) No 851/98 (OJ L 122, 24.4.1998, p. 1).

This appropriation is intended to cover the financing of reconstruction projects in the Republics formerly part of Yugoslavia.

It is also intended to cover expenditure relating to the return and resettling of refugees and displaced persons in Croatia, Bosnia and Herzegovina and the Federal Republic of Yugoslavia (Serbia-Montenegro), without discrimination based on the region of origin or nationality of the refugees or persons displaced as a result of the conflict on the territory of the former Yugoslavia.

This budget heading is accessible only to States and State bodies which fulfil the requirements arising from the Dayton Peace Agreements, notably regarding the protection of human rights, and the decisions of the special international court on the former Yugoslavia.

This appropriation may also be used for making a contribution to joint actions of police forces in order to help maintain peace and stability in Bosnia and guarantee the protection and security of civilians.

It also covers expenditure on studies, meetings of experts, information and publications directly linked to the achievement of the objective of the measure of which they form an integral part.

The Commission delegate in Bosnia, who has special powers, will be provided with a strong management team and support from technical assistance and monitoring teams which have still to be recruited. In the light of the unusual situation with regard to reconstruction in Bosnia and Herzegovina and in order to secure appropriate staff who can provide the Commission with such technical support on the spot, part of the appropriation authorised for reconstruction measures may be earmarked for staff recruitment according to the rules for technical and administrative assistance.

This article will also fund technical and administrative assistance, to both the Commission and the beneficiaries of the measures, which does not fall within the standing remit of public administration, covering the identification, preparation, management, monitoring, audit and supervision of the programme or project. Such technical and administrative assistance may only continue as long as the programme or project itself.

A maximum amount of EUR 18400000 is authorised for such expenditure.

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SUBSECTION B0

GUARANTEES AND RESERVES

TITLE B0-4

RESERVES AND PROVISIONS

CHAPTER B0-4 0 - PROVISIONS

B0-4 0 0 Non-differentiated appropriations

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B0-4 0 1 Differentiated appropriations

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Remarks

Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities (OJ L 356, 31.12.1977, p. 1) as last amended by Regulation (EC, ECSC, Euratom) No 2548/98 (OJ L 320, 28.11.1998, p. 1).

The appropriations in this chapter are purely provisional in nature and may only be utilised after having been transferred to other chapters in accordance with the provisions of the Financial Regulation. (Commitment appropriations are shown in brackets).

The breakdown is as follows:

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(1) An appropriation of EUR 54690000 is entered in Chapter B0-4 0.

(2) An appropriation of EUR 5900000 is entered in Chapter B0-4 0.

(3) An appropriation of EUR 54690000 is entered in Chapter B0-4 0.

(4) An appropriation of EUR 5900000 is entered in Chapter B0-4 0.

(5) An appropriation of EUR 15000000 is entered in Chapter B0-4 0.

(6) An appropriation of EUR 15000000 is entered in Chapter B0-4 0.

(7) An appropriation of EUR 30000000 is entered in Chapter B0-4 0.

(8) An appropriation of EUR 30000000 is entered in Chapter B0-4 0.

(9) An appropriation of EUR 30000000 is entered in Chapter B0-4 0.

(10) An appropriation of EUR 30000000 is entered in Chapter B0-4 0.