20061223

P6_TA(2006)0570

Draft general budget for 2007, amended by the Council (all sections)

European Parliament resolution on the draft general budget of the European Union for the financial year 2007 as modified by the Council (all sections) (15637/2006 — C6-0442/2006 — 2006/2018(BUD) — 2006/2018B(BUD)) and Letters of Amendment Nos 1/2007 (SEC(2006)0762), 2/2007 (13886/2006 — C6-0341/2006) and 3/2007 (15636/2006 — C6-0443/2006) to the draft general budget of the European Union for the financial year 2007

The European Parliament,

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

- having regard to Council Decision 2000/597/EC, Euratom of 29 September 2000 on the system of the European Communities' own resources [1],

- having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities [2],

- 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 [3],

- 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 [4],

- having regard to the draft general budget of the European Union for the financial year 2007, which the Council established on 14 July 2006 (C6-0299/2006),

- having regard to its resolution of 26 October 2006 on the draft general budget of the European Union for the financial year 2007, Section III — Commission (C6-0299/2006) and Letter of amendment No 1/2007 (SEC(2006)0762) to the draft general budget of the European Union for the financial year 2007 [5],

- having regard to its resolution of 26 October 2006 on the draft general budget of the European Union for the financial year 2007, Section I — European Parliament, Section II — Council, Section IV — Court of Justice, Section V — Court of Auditors, Section VI — European Economic and Social Committee, Section VII — Committee of the Regions, Section VIII (A) — European Ombudsman, Section VIII (B) — European Data Protection Supervisor (C6-0300/2006) [6],

- having regard to Letter of amendment No 2/2007 (13886/2006 — C6-0341/2006) to the draft general budget of the European Union for the financial year 2007,

- having regard to Letter of amendment No 3/2007 (15636/2006 — C6-0443/2006) to the draft general budget of the European Union for the financial year 2007,

- having regard to its amendments and proposed modifications of 26 October 2006 to the draft general budget [7],

- having regard to the Council's modifications to the amendments and proposed modifications adopted by Parliament to the draft general budget (15637/2006 — C6-0442/2006),

- having regard to the results of the conciliation of 21 November 2006 and the subsequent meeting of 28 November 2006,

- having regard to the statement by the Council on the outcome of its deliberations on the amendments and proposed modifications adopted by Parliament to the draft general budget,

- having regard to Rule 69 and Annex IV of its Rules of Procedure,

- having regard to the report of the Committee on Budgets (A6-0451/2006),

A. whereas it has followed a consistent strategy throughout its work on the 2007 budget,

B. whereas this strategy was based on the three pillars set out in its resolution of 18 May 2006 on the 2007 budget: the Commission's Annual Policy Strategy report (APS) [8], namely: setting policy priorities; delivering value for money; preparing for the 2008/2009 review,

C. whereas this approach highlighted the major challenges and opportunities for the European Union in relation to the ongoing process of globalisation, and raised fundamental questions about the nature of the EU's strategic partnerships with partner countries and regions around the world,

D. whereas this clear, consistent, strategic vision delivered results for Parliament in its negotiations with the Council on Parliament's key priorities, including with regard to the Financial Regulation,

E. whereas the results obtained on Parliament's priorities, on delivering value for money, and on the Financial Regulation will bring real benefits to Europe's citizens in terms of more efficient and more effective spending and will contribute to Parliament's continuing efforts to achieve a positive statement of assurance (DAS) for EU spending,

General considerations: achieving priorities, delivering value for money, preparing for the 2008/2009 review

Achieving priorities

1. Recalls that the strategy and political priorities for Parliament's approach to the 2007 budget were set out in its abovementioned APS resolution of 18 May 2006, in particular paragraphs 5 and 6; considers that the APS resolution was therefore an essential means for setting out its strategy at an early stage in the annual budget procedure;

2. Welcomes the results which it has achieved on its broad priorities and on the key issues in negotiations with the Council in the trialogue and conciliation procedure in advance of Parliament's second reading on the budget;

3. On the overall level of payments, rejects the approach taken by Council of arbitrary, across-the-board cuts in payment levels; considers that payments should be directed to those priority programmes on which efficient and effective spending can be ensured; agrees in the context of an overall deal with Council on a final level of payments of 115500 million euro, which equates to 0,99 % of EU GNI;

4. Recalls its declaration on payments reminding that Points 12 and 13 of the IIA of 17 May 2006 set absolute amounts, representing annual ceilings on expenditure under the general budgets, in the context of the MFF; therefore, the respect of the annual ceilings fixed by the MFF 2007-2013 constitutes automatic acceptance of the rates of increase for non-compulsory expenditure in the annual budgets; reminds the Council that in case these articles are not respected, Parliament will consider this as a violation of the IIA;

5. Notes in this context that Parliament's specialised committees were modest in their demands for increased payment appropriations in the establishment of Parliament's first reading on the 2007 budget given that the main new legal bases have been agreed during the course of 2006 with a view to new EU spending programmes beginning in 2007;

6. On the overall level of commitment appropriations, notes that Parliament has taken a prudent approach in line with that of the specialised committees and has not requested the use of the flexibility instrument; sets commitment appropriations at or close to the ceilings in Annex I of the IIA of 17 May 2006 for the majority of the headings of the 2007 budget;

7. On the Common Foreign and Security Policy (CFSP), decides to restore commitment appropriations for 2007 to the level foreseen in the Preliminary Draft Budget (PDB) of 159200000euro, but expects Council to implement both the spirit and the letter of the IIA of 17 May 2006 as regards CFSP spending and as confirmed in the exchange of letters between Chairmen Brok and Lewandowski and Finnish Minister Wideroos;

Delivering value for money

8. Emphasises that the value for money approach has been an innovative element of the 2007 budgetary procedure with a view to ensuring improved evaluation of EU programmes and scrutiny of budget implementation in line with Parliament's priorities and its institutional prerogatives; notes the joint statement agreed with the Commission on proper budget implementation and emphasises that the overall objective of this exercise is to deliver better value for money to European citizens and to respond to the challenges which the EU faces through the best possible allocation of funds (see attached declaration);

9. Recalls its decision to place 30 % of appropriations, totalling over 500 million euro, in reserve on nearly 40 budget lines on which Parliament has had significant concerns about the quality and level of budget implementation on the basis of a thorough examination of the available information sources; welcomes the constructive response of the Commission to the requirements set out by Parliament for the release of these reserves in its budgetary amendments; further to the response from the Commission annexed to its traditional early-November letter of executability, decides to maintain over 8900000euro in reserve on 2 budget lines; resolves to continue to monitor closely the quality and level of implementation of spending on these lines during the course of 2007 in line with a declaration on better value for money;

10. Further welcomes the meeting of 15 November 2006 with the Commissioner for Financial Programming and Budget and the Commission Secretary-General as a strong demonstration of the Commission's commitment to the value for money approach; notes that Parliament's Committee on Budgets will conduct, in the first part of 2007, a hearing on taking forward the value for money approach;

11. Recalls the importance attached by Parliament to the achievement of a positive statement of assurance for funds under shared management; underlines its intention to ensure that, in line with the IIA of 17 May 2006, the relevant audit authorities in Member States produce an assessment of the compliance of management and control systems with Community regulations; reiterates that Member States should therefore undertake to produce an annual summary at the appropriate national level of the available audits and declarations; welcomes the recent development in one Member State to consolidate all the separate accounts where EU money is spent under shared management with a view to the subsequent auditing of these figures; considers that a review of the Court of Auditors' methodology for assessing compliance with EU financial rules through a peer review process with other comparable institutions will contribute to improvements in the Court's approach to auditing EU accounts; notes with amazement that no such peer review process has yet been completed; requests this to be done by 31 July 2007;

12. On the three new agencies (Chemicals Agency, Gender Institute and Agency on Fundamental Rights), notes the joint declarations agreed between the Parliament, Council and Commission regarding the financing and the financial programming for these agencies in the context of the IIA of 17 May 2006; regarding the existing agencies, decides to restore appropriations in the PDB but place in reserve increases above a reference amount pending a positive evaluation of the performance of the agencies against their final work programmes; notes that these evaluations should be completed in the context of a meeting with the Heads of the agencies in Spring 2007;

Preparing for the 2008/2009 review

13. Reiterates its concern that the European Union should develop a more pro-active strategy to engage with the opportunities and challenges of the ongoing process of globalisation; considers that a re-evaluation of the EU's approach to partnerships with third countries and regions is necessary in this context and that use of the term "strategic" should be reserved for the EU's most important partnerships, such as the trans-atlantic partnership with the United States of America;

14. Confirms that the political analysis as prepared by the "Temporary Committee on Policy Challenges and Budgetary Means of the Enlarged Union 2007-2013" and the relevant resolution adopted by Parliament on 8 June 2005 [9] remain the basis for the review and any possible changes of the IIA; considers that the evaluation of the effectiveness and the implementation of the new generation of multiannual programmes and instruments have to be included;

15. Notes that the preparatory actions adopted by Parliament as regards business and scientific exchanges with China and India are intended to signal the importance attached by Parliament to developing stronger cooperation with these rapidly developing countries;

16. Considers that a greater degree of transparency should be achieved by the Commission as regards the advantages and disadvantages of working with NGOs in delivering EU development assistance; in this light recommends that a cost-benefit analysis be carried out on the functioning of NGOs; intends to examine further the scope for a greater use of micro-credits in future EU development assistance;

17. Considers that the Commission should re-examine the nature of the EU's strategic partnerships in a report to be presented by 30 April 2007, defining in particular the meaning of the word strategic, and that this is but one example of the wider need for the European Union clearly to establish its overall policy priorities in a manner that can be effectively communicated to the citizens of Europe; notes that clear policy priorities are a pre-requisite for the allocation of budgetary resources to these priorities; highlights that in its work on the 2007 budget Parliament established its policy priorities early in the procedure and so developed an effective strategy for the 2007 budget;

18. Believes therefore that Parliament should build upon the priority-setting approach taken in the 2007 budgetary procedure, inter alia through a series of hearings on specific policy topics, to define its medium-term policy priorities; considers that, in line with paragraphs 38 to 40 of the APS resolution of 18 May 2006, this should contribute to the development by Parliament of a strategy for the 2008/2009 review;

Horizontal issues and key elements per MFF heading

Horizontal issues

19. On pilot projects and preparatory actions, notes the increased ceilings for new projects set out in the IIA of 17 May 2006 and highlights that these projects allow Parliament to indicate priority areas for developing European policies; decides therefore to propose a number of new projects broadly in line with the priorities set out in paragraph 6 of the APS resolution of 18 May 2006;

20. Notes the adoption of the Commission's Letter of amendment No 3/2007 and the elements of the Commission's Letter of amendment No 2/2007 including the provisions relating to classification concerning Hercule II and the European Globalisation Fund; rejects other elements of Letter of amendment 2/2007 and decides to introduce appropriate amounts and budget nomenclature in line with its external priorities;

21. Welcomes the agreement reached to make available an amount of 500 million euro for the European Globalisation Fund budgeted for the year 2007; stresses that the procedure adopted for budgeting the Fund remains in conformity with the provisions of Point 28 of the IIA of 17 May 2006 and reaffirms its view that in accordance with the Agreement the order of the sources used for financing the European Globalisation Fund in a year N is the one resulting from the chronological sequence of availability of the information on margins and cancelled commitments, i.e. firstly, cancelled commitment appropriations from year N - 2, secondly, margin left available in year N - 1, thirdly, cancelled commitment appropriations from year N - 1; welcomes the Commission's view on this issue as expressed in the letter of the Commissioner for Financial Programming and Budget to the President of the European Parliament of 17 November 2006;

Main elements per IIA heading

Heading 1a — Competitiveness for growth and employment

22. Confirms its conviction expressed in its APS resolution of 18 May 2006 that knowledge, skills, research and development, innovation, information society technologies, and a sustainable transport and energy policy form the basis of a healthy modern economy and are essential for job creation; has therefore decided to reject the Council's approach of reductions in a number of crucial budget lines aiming at improving the competitiveness of the EU's economy; has decided to increase payment appropriations, albeit at a reduced level relative to its first reading, for priority programmes linked to the Lisbon agenda such as the Competitiveness and Innovation Programme (CIP) and the Seventh Framework Programme of the European Community for research, technological development and demonstration activities (2007-2013);

23. Is convinced that raising the EU's competitiveness is an essential element of the EU's response to the challenges of globalisation; therefore considers increases in appropriations in heading 1a to be a clear signal of the future direction that EU spending should take; recalls the need for adequate public funding to create the pump-priming effect expected of European Investment Bank cofinancing; awaits with impatience the proposals by the Commission and Council on this subject; stresses that an increase in the long-term subscribed capital would be desirable for the European Investment Fund, both to accompany the introduction of the new mandates (including the CIP) in 2007 and to finance the new technology transfer project operations, as wished by Parliament, the Council or the Commission;

24. Stresses the technological and economic significance of the Galileo programme; reminds the Commission that, taken over the period as a whole, this programme is underfinanced in the new MFF and calls on the Commission to seek promptly a workable and lasting solution in order to ensure the success of this programme;

Heading 1b — Cohesion for growth and employment

25. Notes that the appropriations for the Structural and Cohesion funds are considerably lower for the 2007-2013 MFF than had been anticipated, largely as a result of the conclusions of the December 2005 European Council; considers therefore that the appropriations in the PDB should be restored; underlines the importance of establishing and approving as quickly as possible national programmes now that the new IIA has been agreed; stresses the importance of cohesion as one of the policy priorities of the EU; on pre-accession assistance, asks the Commission to present a transfer request or amending budget during the course of 2007 if the amounts foreseen in the 2007 Budget turn out to be insufficient;

Heading 2 — Preservation and management of natural resources

26. Notes that 2007 will be the first year of full implementation of the most recent reform of the Common Agricultural Policy (CAP); rejects the cuts in compulsory expenditure adopted by the Council in its second reading; rejects the re-classification of several budget lines in the agricultural field from non-compulsory to compulsory expenditure as proposed by the Commission in its Letter of amendment No 2/2007;

27. Deplores the fact that in spite of the major needs for restructuring, modernisation and diversification of Europe's rural economy, the resources allocated to rural development are set to fall in real terms; considers that a voluntary transfer of funds from direct agricultural support (CAP "first pillar") to rural development is not the appropriate means for remedying this situation; expresses in this connection strong reservations about the current Commission proposal concerning voluntary modulation of up to 20 % of direct agricultural support to rural development; calls on the Commission to conduct an impact assessment in accordance with the Interinstitutional Agreement of 16 December 2003 between the European Parliament, the Council and the Commission on better law-making [10]; reiterates that Parliament still reserves its position concerning voluntary modulation and considers it would be useful to assess it together with the issue of co-financing in the context of the 2008/2009 review as expressed in Declaration No 9 of the IIA of 17 May 2006 concerning voluntary modulation;

28. Is disappointed that in spite of the major needs for appropriations for development of a dead vaccine for the Blue Tongue virus (BTV), Council refused to approve this initiative by Parliament in its second reading; welcomes however the Commission's suggestion, expressed in the letter of executability, to incorporate the development of a new vaccine for blue tongue in the Research budget under the IPA projects; emphasises that preference should be given to the development of a multivalent vaccine, which is effective against the different types of the virus;

29. Endorses and welcomes the joint declaration on Life+ agreed by Parliament, Council and Commission as regards the provision of interim financing in the event of a legislative gap arising between the beginning of 2007 and the final adoption of the legal act;

Heading 3a — Freedom, security and justice

30. Points out that the area of freedom, security and justice, and in particular the promotion of fundamental rights, the definition of a common asylum and migration policy and the fight against terrorism and organised crime, is one of the Union's key priorities;

31. Considers that integrated management of the Union's external borders is one of the objectives currently requiring urgent support; accordingly restores the PDB level of commitment appropriations for the Frontex agency, whilst placing some funds in reserve in line with the overall approach on agencies;

Heading 3b — Citizenship

32. Recalls the importance of the principle of subsidiarity in the field of culture, education, training and youth, and believes that respect for pluralism of opinion is the first condition for an effective communication policy in order to bring the EU closer to citizens; considers that better use can be made of new communications media to bring together European policymakers from all political opinion to share ideas; welcomes, in this context, the gratifying development of reporting by Euronews; calls on the Commission to support the broadcasting of Euronews in Arabic, so that both Arabic-speaking members of the community in the EU and people in Arabic-speaking Mediterranean countries can be more effectively reached and informed about Europe's commitment; urges the Commission to clarify the budget implications of, and the actions to be taken under, the Plan D for Democracy Debate and Dialogue; asks the Commission to publish on the Internet the detail of allocation of subsidies (amounts and beneficiaries) for all actions;

33. Highlights the importance it attaches to effective EU communications strategies and specifically to ensuring that on-line mechanisms can be used to the fullest possible extent to facilitate the development of information and ideas linkages between European opinion-formers and stakeholders; notes in this connection the pilot project adopted on pilot information networks (PINs) to improve communication between policymakers, not least between European and national Parliamentarians, considers that this initiative should build upon existing European web portals in a manner that adds value to existing specific actions in this area;

34. Calls on the Commission to carry out a survey on the condition and the estimated cost of restoration of the churches in the northern part of Cyprus which have been desecrated, converted into mosques or damaged since the Turkish army took control of the area in 1974, in line with the declaration of the European Parliament on the protection and preservation of the religious heritage in the northern part of Cyprus [11];

35. Calls into question the quality of the information policy pursued by the Commission; requests the Commission to formally confirm its willingness to represent all institutions and their respective powers adequately;

Heading 4 — The EU as a global player

36. Believes that the EU should ensure that it has the wherewithal to act as a global player in keeping with its values; proposes the restoration of PDB figures on a number of lines and increases beyond the PDB in payments and in commitments in some areas with a view to boosting EU activities through Community programmes in the fields of foreign policy, development and humanitarian aid, and business and scientific exchanges with key emerging countries;

37. Highlights the importance of transparency in the use of the funds allocated to Iraq via the two trust funds and recalls the need to monitor closely Iraq's absorption capacity; therefore asks the Commission to provide regular information about the projects financed by the EU and the level of absorption of the funds earmarked for that country;

38. Notes that the new legal framework for the EU's external actions also implies a new budget structure; welcomes in general the simplification of instruments and the new budget nomenclature proposed with it; welcomes also the presentation of a separate instrument on Human Rights and Democracy, which requires a modification of the nomenclature of the PDB; cannot accept, however, that a number of the proposed changes reduce transparency for either sectors and/or regions and countries; has decided the necessary modifications in this respect; calls on the Commission to provide also a breakdown per activity and pre-accession country and, in the interests of transparency, a corresponding nomenclature in all corresponding budget lines; moreover, calls on the Commission to provide a regular monitoring report to the budgetary authority on the progress of both the two new Member States and the pre-accession countries;

39. Restores appropriations for the CFSP to the level proposed in the Commission's PDB and Council's DB; underlines that it requests the Council to comply with the letter and the spirit of the IIA of 17 May 2006 as regards the CFSP in line with the exchange of letters between Chairmen Brok and Lewandowski and Minister Wideroos;

40. Notes that Parliament's second reading on the 2007 budget leaves no margin remaining under heading 4 and that increased commitments through amending budgets during the course of 2007 would therefore imply recourse to the flexibility instrument; expects to be kept fully informed on a pro-active a priori basis by the Council of the financial needs for the forthcoming Kosovo mission;

Heading 5 — Administration

41. On staffing in the EU institutions, notes that the cuts in staffing levels initially proposed by the Council will not be implemented in the 2007 budget; endorses the joint declaration with the Council on recruitment in relation with the 2004 and 2007 enlargements; welcomes the commitment from the Commission to carry out a substantive screening exercise providing a mid-term evaluation of its staff needs and a detailed report on the Commission's staffing of support and coordination functions covering all places of work by 30 April 2007;

42. Decides to release the amounts placed in reserve in its first reading for Commission staff resources on the basis of a letter from the President of the Commission accepting that all four requests of Parliament to release the reserve will be fully met; looks forward to a strategic discussion of staffing in the EU institutions during 2007 in the context of the screening exercise requested by Parliament;

Other sections of the 2007 budget

43. Notes that the budgetary increase given to "other sections" in the 2007 Budget, excluding enlargement costs, was only 1,7 % over the 2006 budget; this increase constitutes only a marginal increase and reflects the increase in the inflation rate and the cost for the specific priorities of the institutions and is, in fact, significantly less than that requested in the PDB; decides to retain its original position taken in first reading by restoring 10630000euro of the 28280000euro reductions made by Council;

44. Reiterates its belief in the implementation of budgetary rigour in all on-going activities ensuring a more effective budgeting and reflecting the current real needs and priorities of the institutions; acknowledges also however that the institutions need to have the necessary tools to function and operate at a reasonably effective level thereby ensuring that the various objectives of the institutions can really be met; regrets therefore the Council's decision not to agree with Parliament's budget for the "other sections" as approved in first reading;

45. Requests that the institutions submit by 1 September of each year more informative reports on their activities and their performance; these activity based reports are required to give more and clearer information on how successfully funds are being utilised and to justify the consumption of the budgetary amounts; this would enable the budgetary authority to monitor how and where the increase in funds is rendering the institutions more efficient;

46. Reiterates the importance of interinstitutional cooperation which, undoubtedly, can bring about benefits to the institutions involved; in this respect, considers that the joint administrative service of the European Economic and Social Committee and the Committee of the Regions is an effective and dynamic way of avoiding duplication, reducing costs and developing team spirit without reducing the quality and efficiency of the service provided; invites the two Committees to examine — by not later than July 2007 — this co-operation in the light of the co-sharing principle and with a view to taking the necessary measures to ensure that the needs of both institutions are met and that a more equitable governance of the joint service is guaranteed; recommends that an exercise relating to the evaluation of the functions and activities of the European Economic and Social Committee and the Committee of the Regions should be carried out by not later than the end of June 2007;

*

* *

47. Instructs its President to declare that the budget has been finally adopted and arrange for its publication in the Official Journal of the European Union;

48. Instructs its President to forward this resolution and the declarations annexed thereto to the Council, the Commission, the Court of Justice, the Court of Auditors, the European Economic and Social Committee, the Committee of the Regions, the European Ombudsman, the European Data Protection Supervisor, and the other institutions and bodies concerned.

[1] OJ L 253, 7.10.2000, p. 42.

[2] OJ L 248, 16.9.2002, p. 1.

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

[4] OJ C 172, 18.6.1999, p. 1. Agreement as last amended by Decision 2005/708/EC of the European Parliament and of the Council (OJ L 269, 14.10.2005, p. 24).

[5] Texts Adopted, P6_TA(2006)0451.

[6] Texts Adopted, P6_TA(2006)0452.

[7] Texts adopted, Annex.

[8] Texts adopted, P6_TA(2006)0221.

[9] OJ C 124 E, 25.5.2006, p. 373.

[10] OJ C 321, 31.12.2003, p. 1.

[11] Texts Adopted, 5.9.2006, P6_TA(2006)0335.

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20061223

ANNEX

Joint declaration on the three new agencies foreseen in the 2007 budget in application of Point 47 of the Interinstitutional Agreement (IIA) of 17 May 2006

The preliminary draft budget for the year 2007 foresees the financing of the following three new agencies:

- the European Chemicals Agency

- the European Gender Institute

- the European Agency on Fundamental Rights.

The European Parliament, the Council and the Commission undertake to build on this first experience with these three new agencies to further develop the procedure foreseen in Point 47 of the IIA when drawing up proposals for the creation of new agencies.

Joint declaration on the financing of the European Chemicals Agency

In May 2006, the Commission presented the first financial programming for the period 2007-2013, in accordance with Point 46 of the Interinstitutional Agreement (IIA) of 17 May 2006 on budgetary discipline and sound financial management.

On the basis of the information transmitted by the Commission on 7 November 2006, the European Parliament and the Council note that the financing of the European Chemicals Agency can be secured within the agreed expenditure ceiling of heading 1a for the period 2007-2013.

Moreover, the European Parliament and the Council note that the amendments to the legal base of the European Chemicals Agency entail a total additional expenditure of 113600000euro, in the years 2008 and 2009 under heading 1a of the multi-annual financial framework 2007-2013, compared to the financial programming presented in May 2006 by the Commission and without taking into account possible redeployments within heading 1a.

Should the Commission, be it on request of the Agency or due to any other unforeseen circumstance, intend to deviate from the amounts originally deemed necessary for the financing of the Agency in the period concerned, it shall notify the budgetary authority of this intention and its effect on the remaining margin of the relevant heading of the multi-annual financial framework and indicate the re-programming.

Joint declaration on the financing of the European Gender Institute

In May 2006, the Commission presented the first financial programming for the period 2007-2013, in accordance with Point 46 of the Interinstitutional Agreement (IIA) of 17 May 2006 on budgetary discipline and sound financial management.

On the basis of the information transmitted by the Commission on 7 November 2006, the European Parliament and the Council note that the financing of the European Gender Institute can be secured within the agreed expenditure ceiling of heading 1a for the period 2007-2013.

Should the Commission, be it on request of the Institute or due to any other unforeseen circumstance, intend to deviate from the amounts originally deemed necessary for the financing of the Institute in the period concerned, it shall notify the budgetary authority of this intention and its effect on the remaining margin of the relevant heading of the multi-annual financial framework and indicate the re-programming.

Joint declaration on the financing of the European Agency on Fundamental Rights

In May 2006, the Commission presented the first financial programming for the period 2007-2013, in accordance with Point 46 of the Interinstitutional Agreement (IIA) of 17 May 2006 on budgetary discipline and sound financial management.

On the basis of the information transmitted by the Commission on 7 November 2006, the European Parliament and the Council note that the financing of the European Agency on Fundamental Rights can be secured within the agreed expenditure ceiling of heading 3a for the period 2007-2013.

Should the Commission, be it on request of the Agency or due to any other unforeseen circumstance, intend to deviate from the amounts originally deemed necessary for the financing of the Agency in the period concerned, it shall notify the budgetary authority of this intention and its effect on the remaining margin of the relevant heading of the multi-annual financial framework and indicate the re-programming.

Joint declaration on recruitment in relation with the 2004 and 2007 enlargement

The European Parliament and the Council note with great concern the delays in the selection and recruitment process relating to the 2004 enlargement, the low occupancy of posts at Middle Management level, the high ratio of permanent posts occupied by temporary agents and the lack of a sufficient number of appropriate competitions.

The European Parliament and the Council insist that all efforts should be made by the institutions and specifically by the European Personnel Selection Office (EPSO) to ensure that the necessary action is taken to rectify the situation and to speed up the whole process of filling the posts granted by the budgetary authority. The criteria should be as stipulated in Article 27 of the Staff Regulations and to arrive at the broadest possible geographical proportional basis as soon as possible.

The European Parliament and the Council intend to monitor closely the ongoing recruitment process. To this effect, they request each institution and EPSO to provide twice a year an information to the Budgetary Authority on the state of affairs regarding recruitments in relation with the 2004 and 2007 enlargement.

The European Parliament and the Council invite the Secretaries-General of the institutions to present a report on the progress made in the field as follows:

- concerning the filling of the posts granted in the 2004-2006 budgets by the end of January 2007;

- concerning the filling of the posts granted in 2007 by 15 June 2007 and by 31 October 2007.

Joint declaration on Life+

The European Parliament, the Council and the Commission recall the budgetary principle that the implementation of significant operational expenditure requires the prior adoption of a basic act.

At the same time, the three institutions acknowledge that, at the start of budget year 2007 some new basic acts, intended to provide the follow-up to preceding basic acts which expire at the end of 2006, may still be under consideration by the legislative authority. Nonetheless, certain actions do require fresh budgetary commitments to avoid damaging disruption in implementation and preservation of the acquis. Such a risk exists for certain actions for which there is already broad political agreement among the three institutions.

A particular concern has been expressed, notably by Parliament in its resolution on the first reading of the draft budget 2007, in relation to the Life+ programme, which will ensure the follow-up to its predecessor Life III and other related actions. Should a legislative gap arise between the beginning of the year 2007 and the final adoption of the legal act, the three institutions agree that an amount of up to 15 million euro (out of an overall Life+ budget of 240 million euro proposed in the 2007 preliminary draft budget) may be committed in the interim period for activities preparing the relay by Life+ under the best conditions, i.e. with a view to preserving the acquis built-up through ongoing actions in the field of the environment. Such activities whose continuation is essential for preserving continuity of the acquis relate notably to information systems ensuring the monitoring of EU environmental legislation, the registries underpinning the Emission Trading Scheme, scientific and external expertise preparing Commission proposals in cases where the Commission is bound by target dates, information and awareness actions.

Joint statement of the European Parliament and the Commission to ensure proper budget implementation

In the framework of the budgetary procedure the European Parliament and the Commission emphasise the need for improved value for money in the EU budget and are of the opinion that this concept must be applied on a permanent basis. The aim of this approach is to evaluate and assess the quantitative and qualitative aspects of each EU programme.

In this context, the evaluation of EU programmes should become a major element of concern for the institutions involved in the annual budgetary procedure.

The European Parliament and the Commission recall that Activity-Based Management (ABM) is to offer an integrated view of the performance and cost of the various policy areas including both operational and administrative resources.

The two Institutions agree to take the necessary steps with regard to improving the monitoring of budget implementation through a process using all available information as from January 2007 to which all committees of the European Parliament will be associated. The European Parliament undertakes to make better use of transfers and amending budgets as instruments to scrutinise budget implementation during the year in respect of Parliament's priorities and its inter-institutional prerogatives.

The results of this ongoing process will be the subject of exchange of views in each trialogue foreseen in Annex II of the Interinstitutional Agreement of 17 May 2006.

This exercise aims to ensure that policies financed by the EU budget deliver better value for money to European citizens and respond to the challenges which the European Union faces through the best possible allocation of EU funds.

Declaration of the European Parliament on budgetary discipline for payments

The European Parliament recalls that Points 12 and 13 of the IIA of 17 May 2006 set absolute amounts, representing, annual ceilings on expenditure under the general budgets, in the context of the multi-annual financial framework.

Therefore, the respect of the annual ceilings fixed by the multi-annual financial framework 2007-2013 constitutes an automatic acceptance of the rates of increase for non-compulsory expenditure in the annual budgets.

If Points 12 and 13 of the IIA are not respected, the European Parliament will consider this as a violation of the IIA.

The European Parliament undertakes to implement the provisions of Points 12 and 13 of the IIA as a measure of budgetary discipline for the entire duration of the multi-annual financial framework.

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