PRELIMINARY DRAFT AMENDING BUDGET No 1 TO THE BUDGET FOR 2002 - STATEMENT OF REVENUE AND EXPENDITURE BY SECTION - SECTION I: PARLIAMENT - SECTION II: COUNCIL - SECTION III: COMMISSION

(presented by the Commission)

Having regard to:

- Article 78 of the Treaty establishing the European Coal and Steel Community,

- Article 272 of the Treaty establishing the European Community,

- Article 177 of the Treaty establishing the European Atomic Energy Community,

- Article 15 of the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities, [1] as last amended by Regulation No 762/2001 [2] of 9 April 2001,

[1] OJ L 356, 31.12.1977, p. 1.

[2] OJ L 111 20.04.2001, p. 1.

The European Commission hereby presents to the budgetary authority the draft amending budget No 1 to the 2002 budget for the reasons set out in the explanatory memorandum.

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TABLE OF CONTENTS

EXPLANATORY MEMORANDUM

1. Introduction

2. Section I: Parliament

3. Section II: Council

4. Section III: Commission

STATEMENT OF REVENUE AND EXPENDITURE BY SECTION

1. Section I: Parliament

2. Section II: Council

3. Section III: Commission Part A - Administrative appropriations

EXPLANATORY MEMORANDUM

1. Introduction

The European Council on 14 and 15 December 2001 in Laeken decided to convene a Convention on the Future of Europe, hereafter referred to as 'the Convention' (see point III of the Declaration on the Future of the European Union, hereafter referred to as the Laeken Declaration).

The Laeken Declaration also agreed that the Convention, which will hold its inaugural meeting on 1 March 2002 and will appoint its Praesidium, would be assisted by a Convention Secretariat, to be provided by the General Secretariat of the Council.

The European Parliament, the Council and the Commission agreed in principle to take charge directly of the expenditure related to the infrastructure necessary to the functioning of the Convention.

In order to allow the expenditure, other than infrastructure costs, deemed necessary for the functioning of the Convention and of its Secretariat, the Representatives of the Governments of the Member States meeting within the Council envisaged to adopt a Decision (adoption expected around 25 February 2002) creating a Fund for the financing of the Convention, hereafter referred to as 'the Fund', and laying down financial rules related to its management.

The European Parliament, the Council and the Commission should adopt an Interinstitutional Agreement (adoption expected on 28 February 2002) organising their contribution to the Fund for the first budget year of the Convention, running from the entry into force of the above Decision until 31 December 2002.

Following this Inter-Institutional Agreement, the Commission hereby presents an Amending Budget to the Budget 2002, comprising the creation of lines and transfers of appropriations necessary to allow the payments of the three institutions' contributions to the Fund.

2. Section I: Parliament

The Parliament has stressed its strong support to provide the Convention with the appropriate operational means since it considers that the Convention has a general and common aim and therefore all institutions involved should participate in its financing.

For reasons of visibility and transparency, a new line is created to cover the contribution of the Parliament to the financing of the Convention. EUR1 million is transferred to this line from the contingency reserve.

3. Section II: Council

In accordance with the Interinstitutional Agreement on contributing to the financing of the Convention, the Council is to contribute EUR400 000 to the Fund for 2002.

In order to allow the Convention's separate budget to begin operating and as a precaution, the Council's General Secretariat has provided for the possibility of paying a first instalment of EUR100 000 using Article 280 (Subsidies and financial contributions). Transfer No 1/02, adopted by the Council on 14.02.2002, added EUR100 000 to this article from Chapter 10 1 (Contingency reserve).

For the sake of transparency the present structure of Article 280 (Subsidies and financial contributions) should be amended to separate out the expenditure intended for the Convention. It is proposed that two items be created, 2800 (Subsidies and financial contributions) and 2809 (Contribution to the Fund for financing the European Convention).

Finally an additional EUR300 000 must be provided for Item 2809 in this amending budget in order to reach the planned amount (EUR400 000). This can be taken from Article 270 (Official Journal).

To sum up:

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(*) This transfer has already been made as a precaution by transfer 1/02

4. Section III: Commission

In accordance with the Interinstitutional Agreement on contributing to the financing of the Convention, the Commission is to contribute EUR2 600 000 to the Fund for 2002. For reasons of visibility and transparency, a new line is created to cover this contribution.

In order to transfer EUR2.6 million to this new line, the Commission has decided to apply a levy on a number of budget items of title A-7, as this has been considered the only possible solution to provide the necessary appropriations within the very tight time constraint of the request. At the present time of the year, the Commission has not identified budget lines where the level of appropriations is higher than the expected needs. So, the Commission intends to delay some specific actions planned in 2002, particularly in the field of training and development of Information Systems. If the Commission assesses the availability of appropriations on other lines of part A during the year, it will propose the appropriate transfers in order to complete the actions postponed.

STATEMENT OF REVENUE AND EXPENDITURE BY SECTION

SECTION I

PARLIAMENT

EXPENDITURE

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TITLE 3

EXPENDITURE RESULTING FROM SPECIAL FUNCTIONS CARRIED OUT BY THE INSTITUTION

CHAPTER 37 - EXPENDITURE RELATING TO CERTAIN INSTITUTIONS AND BODIES

New Article

Article 372 - Contribution to the financing of expenditure related to the Convention on the Future of Europe

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Remarks

New article

This appropriation is intended to cover the contribution of the European Parliament to the financing of the Convention on the Future of Europe, convened by the Laeken European Council on 14 and 15 December 2001.

Interinstitutional Agreement of [DATE] between the European Parliament, the Council and the European Commission on contributing to the financing of the Convention.

Decision of the Representatives of the Governments of the Member States meeting within the Council on [DATE] setting up a Fund for the financing of the Convention on the Future of Europe and laying down the financial rules for its management.

TITLE 10

OTHER EXPENDITURE

CHAPTER 10 1 - CONTINGENCY RESERVE

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SECTION II

COUNCIL

EXPENDITURE

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TITLE 2

BUILDING, EQUIPMENT AND MISCELLANEOUS OPERATING EXPENDITURE

CHAPTER 2 7 - EXPENDITURE ON PUBLISHING AND INFORMATION

Article 2 7 0 - Official Journal

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CHAPTER 2 8 - SUBSIDIES AND FINANCIAL CONTRIBUTIONS

Article 2 8 0 - Subsidies and financial contributions

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New item: Item 2 8 0 0 - Subsidies and financial contributions

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New item: Item 2 8 0 9 - Contribution to the Fund for the financing of the Convention on the Future of Europe

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Remarks

New item

This appropriation is intended to cover the contribution of the Council to the financing of the Convention on the Future of Europe, convened by the Laeken European Council on 14 and 15 December 2001.

Interinstitutional Agreement of [DATE] between the European Parliament, the Council and the European Commission on contributing to the financing of the Convention.

Decision of the Representatives of the Governments of the Member States meeting within the Council on [DATE] setting up a Fund for the financing of the Convention on the Future of Europe and laying down the financial rules for its management.

SECTION III

COMMISSION

EXPENDITURE

Part A: Administrative appropriations

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TITLE 4

INTERINSTITUTIONAL COOPERATION, INTERINSTITUTIONAL SERVICES AND ACTIVITIES

New Chapter

CHAPTER A-44 - CONTRIBUTION TO THE FINANCING OF EXPENDITURE RELATED TO THE CONVENTION ON THE FUTURE OF EUROPE

New Article

Article A-440 - Contribution to the financing of expenditure related to the Convention on the Future of Europe

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Remarks

New article

This appropriation is intended to cover the contribution of the Commission to the financing of the Convention on the Future of Europe, convened by the Laeken European Council on 14 and 15 December 2001.

Interinstitutional Agreement of [DATE] between the European Parliament, the Council and the European Commission on contributing to the financing of the Convention.

Decision of the Representatives of the Governments of the Member States meeting within the Council on [DATE] setting up a Fund for the financing of the Convention on the Future of Europe and laying down the financial rules for its management.

TITLE A-7

DECENTRALISED EXPENDITURE ON SUPPORT STAFF AND ADMINISTRATION

CHAPTER A-70 - DECENTRALISED EXPENDITURE ON SUPPORT STAFF AND ADMINISTRATION

A-700 Decentralised expenditure on support staff

A-7 0 0 1 Agency staff

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A-7 0 0 2 Technical and administrative assistance in support of different activities

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A-701 Mission expenses, travel expenses and incidental expenditure

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A-704 Miscellaneous expenditure on the organisation of and participation in conferences, congresses and meetings

A-7 0 4 0 Conferences, congresses and meetings organised by the institution

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A-7 0 4 1 Cost of the institution's participation in conferences, congresses and meetings

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A-7 0 6 Further training and management training

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A-7 0 7 Development of management and information systems

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