A4-0175/98

Resolution on the estimates of revenue and expenditure of the European Parliament and the estimates of revenue and expenditure of the Ombudsman for the financial year 1999, and on a letter of amendment to preliminary draft supplementary and amending budget 1/98

The European Parliament,

- having regard to its resolution of 2 April 1998 on the guidelines for the 1999 budgetary procedure ((Minutes of that sitting, Part II, Item 3(b).)),

- having regard to its resolution of 2 April 1998 on the adjustment of the financial perspective ((Minutes of that sitting, Part II, Item 3(c).)),

- having regard to the Secretary-General's report,

- having regard to the preliminary draft estimates established by the Bureau on 31 March 1998 pursuant to Rules 22(5) and (6) and 165(1) of Parliament's Rules of Procedure,

- having regard to the provisions of the Financial Regulation, the declaration on the presentation of an analytical budget, and the interinstitutional conclusions on the rationalization of administrative expenditure ((OJ C 308, 20.11.1995, p. 127.)),

- having regard to its decision of 9 March 1994 on the regulations and general conditions governing the performance of the Ombudsman's duties, and in particular Article 11 thereof ((OJ L 113, 4.5.1994.)),

- having regard to the report of the Committee on Budgets (A4-0175/98),

I. GENERAL FRAMEWORK

1. Points out that the 1999 budgetary procedure is subject to the financial framework established by the 1993-1999 financial perspective in force;

2. Stresses that:

a) the rate of increase in heading 5 of the financial perspective, Administrative expenditure, is 4%;

b) complying with the recommendation of the political group chairmen of 14 November 1988 that Parliament's budget be set at a level corresponding to 20% of the appropriations earmarked for heading 5 could lead to authorization of an amount of up to ECU 944.6 m;

c) the amounts entered against the various budget lines take account of implementation of the 1996 and 1997 appropriations and must be utilized in accordance with the principles of sound financial management and, in particular, thrift and cost-effectiveness;

d) the limited increase in expenditure should meet the concern to maintain a degree of rigour comparable to that self-imposed by the Member States;

e) the official ECU-BF conversion rate for January 1998 used to calculate the appropriations requested is 40.7810, while the ECU-FF rate is 6.61349;

f) the rates taken for salary adjustments and average rate of inflation are 2.3% for 1998 and 2.5% for the financial year 1999;

3. Adopts Parliament's estimates for the financial year 1999 ((See preliminary draft budget for 1999, Volume 2.)), totalling ECU 916 102 484 in expenditure and ECU 53 812 374 in own resources, which correspond to an allocation of 19.40% of the volume for heading 5, Administrative expenditure; estimates the volume for re-use at ECU 3 802 280;

II. PRESENTATION OF THE BUDGET

4. Stresses that the amendments made to the nomenclature improve presentation of expenditure and meet budget control and readability requirements ((Article 19(2) of the Financial Regulation and Committee on Budgets working document PE 225.535.)); stresses that its budget will henceforth include an annex providing a breakdown of the main budget spending volumes by purpose while the detailed analysis by budget heading should be covered by a separate working document accompanying the Secretary-General's report to the members of the Bureau on the preliminary draft estimates;

III. MEMBERS OF THE INSTITUTION

5. Points out that 1999, when the euro will be introduced, will be marked by the close of the fourth parliamentary term, the cut-off point being the European elections in June 1999, the net overall impact of which is put at ECU 16.8 m;

6. Earmarks in this context, and in the light of the experience of the 1994 elections, the appropriations necessary for a parliamentary calendar comprising 11 ordinary part-sessions and 6 additional part-sessions, projects a Parliament turnover rate of 60% ((This rate of 60% would take account of the rate recorded in 1994 plus a margin allowing an error probability rate of ±3%.)), and earmarks the appropriations for a neutral campaign of institutional information for the citizens of the Union ((Bureau decision of 14 January 1998.));

7. Points out that, prior to the first reading of the 1999 budget, the Statute for Members Working Party should be submitting specific proposals which may have an impact on Parliament's budget, in particular the headings concerning Members of the European Parliament;

IV. STAFF IN ACTIVE EMPLOYMENT

8. Points out that, on 20 October 1997, its Bureau adopted the principles of the new staffing policy, the key components of which are recruitment based on the principle of non-discrimination with an increased age limit of 45 ((This age limit rule to be reviewed after two years.)), mobility and redeployment for all officials, sustained professional training intended to be a vital component giving the Secretariat the requisite flexibility and adaptability, an overhaul of the promotions system, decentralization and delegation of management powers, and continuation of efforts to ensure equality of opportunity;

9. Points out that, as a Community institution, the European Parliament is directly involved in the enlargement process which has been set in train and that it will therefore have to be given appropriate human resources;

10. Authorizes the appropriations for the creation of posts, upgradings, the award of ad personam grades and the other measures affecting the establishment plan as follows:

Secretariat:

a) the creation of 10 temporary posts (5 A7, 1 B5 and 4 C5) related to the enlargement process, it being understood that the grades indicated may be revised, prior to the first reading of the draft budget, on the basis of the job description submitted by the Secretary-General to the competent bodies;

b) the upgrading of 206 permanent posts: 5 A5 to A4, 4 A6 to A5, 11 A7 to A6, 12 B2 to B1, 12 B3 to B2, 12 B4 to B3, 25 B5 to B4, 38 C2 to C1, 9 C3 to C2, 19 C4 to C3, 11 C5 to C4, 25 D2 to D1, 5 D3 to D2, 1 LA4 to LA3, 11 LA5 to LA4 and 6 LA6 to LA5; enters the corresponding appropriations in Chapter 100 and invites the Secretary-General to submit a report defining all the rules governing the system of promotions based on merit, as required by the Staff Regulations;

c) the award of 5 ad personam grades: 4 C1 to B3, 1 D1 to C3;

d) the conversion of 2 A7 temporary posts into 2 A7 permanent posts assigned for the management of the new buildings in Brussels and Strasbourg;

e) the upgrading of 1 temporary half-time A7 post to a full-time A6 for the Medical Service in Brussels;

f) the conversion of 15 category D posts to category C;

Political group secretariats

g) the upgrading of 17 temporary posts: 2A5 to A4, 4 A6 to A5, 2 A7 to A6, 1 B2 to B1, 1 B3 to B2, 1 B4 to B3, 2 C1 to B4, 3 C2 to C1 and 1 D3 to D2;

11. Would stress that

a) staff in grades other than A3, LA3, A2 and A1 whose service is terminated are replaced at the basic grade of the appropriate category; and that it is furthermore necessary to develop synergy between the political groups' temporary staff and the Secretariat on the basis of criteria to be defined by the competent authorities;

b) the upgrading of one LA4 post to LA3 concerns the Verbatim Report of Proceedings Division (DG I) with a view to the reorganization of the Minutes and Verbatim Report of Proceedings Divisions;

c) the conversion of posts from category D to C concerns posts for ushers who service meetings ((Bureau decision of 7 April 1997.));

12. Instructs the Secretary-General to submit a report, before the close of the 1999 budgetary procedure, on the measures actually taken with regard to restructuring the work of the parliamentary committees, taking into account the implications of the Treaty of Amsterdam and enlargement, systematic and structured cooperation between DG II and DG IV, the programme of exchanges of officials with national administrations or parliaments, and professional training;

13. Instructs the Secretary-General to produce an up-to-date assessment of Chapter 18 (Interinstitutional cooperation), indicating why fewer appropriations are required in the 1999 EP budget than in 1998;

V. MOVEMENTS IN APPROPRIATIONS

14. Notes that, because of the implementation of its building programme in Strasbourg and Brussels, building expenditure as from 1999 should fall by ECU 17.2 m;

15. Points out that this reduction is bound up with the decisions taken when the budgets in the present 1994-1999 parliamentary term were adopted and implemented, focusing on early repayment in respect of the buildings, and the beginnings of a policy of optimum occupancy of the buildings stock through enhanced interinstitutional cooperation ((Surrendering of the Belliard and Van Maerlant Buildings to the ESC/CoR and the Commission respectively.)); points out that the savings achieved through, in particular, repayment of the investment for the D1 and D2 buildings produce a margin for the financial year 1999 which is put at ECU 27 m;

16. Believes therefore that this policy must be continued, both for the Brussels buildings and those in Strasbourg, in the interests of confirming that identical legal and financial arrangements apply in the two working places and of continuing to generate, ultimately, real savings for the Union's budget;

17. In order to reduce further the share of Chapter 20 in the Institution's budgets in 1999 and following years, and taking account of the accommodation needs of the Committee of the Regions and the Economic and Social Committee, proposes a letter of amendment to preliminary draft suppplementary and amending budget 1/98, pursuant to Article 14 of the Financial Regulation, and in conformity with paragraph 29 of Parliament's 1998 budget resolution of 18 December 1997 ((OJ C 14, 19.1.1998, p. 114.)) and the recommendations of the Bureau of 11 May 1998;

18. Regards it as appropriate under the circumstances, in view of the margin not incorporated into the budget, to review the situation, including the uncertainties surrounding the handover of the IPE IV building in Strasbourg, during the first reading of the draft budget;

19. Points out that, for the financial year 1998, Chapter 100 (Provisional appropriations) includes appropriations for Chapters 11 (Staff in active employment), 18 (Interinstitutional cooperation), 20 (Investment in immovable property, rental of buildings and associated costs) and 21 (Data processing and telecommunications) and the conditions for the release thereof have been laid down; therefore enters, pending deliberations on the implementation of this financial year's budget, an appropriation of:

a) ECU 5 m for Article 203, Cleaning and maintenance (Brussels);

b) ECU 13.499 m for Chapter 21, Data processing and telecommunications;

c) ECU 1 m for Article 260, Limited consultations, studies and surveys, STOA programme;

20. Enters an appropriation of ECU 5 346 421 in Chapter 101, Contingency reserve;

VI. WITH REGARD TO THE OMBUDSMAN

21. Notes that, in accordance with the provisions of Article 12 of the Financial Regulation, the Ombudsman forwarded to the European Parliament, before 1 May 1998, estimates of his revenue and expenditure for the financial year 1999 totalling ECU 3 474 797 in expenditure and ECU 357 140 in revenue;

22. Notes, at this stage of the procedure, the request to create 6 new temporary posts, including 1 A3, and the upgrading/conversion of 4 others, including 1 A3 to A2; draws attention in this connection to the provisions of the Staff Regulations with regard to promotions, the conclusions of the three institutions (Parliament, Council and Commission) on the rationalization of administrative expenditure, and the need for a joint declaration by the three institutions setting out the guiding principles for the number of staff employed by the Ombudsman and the status as temporary or contract staff of those carrying out enquiries ((See Staff Regulations applicable to officials and other servants of the European Communities, Parliament's aforementioned decision of 9 March 1994, its resolution of 24 October 1995 on the draft general budget for 1996, Sections I, II, IV, V and VI (OJ C 308, 20.11.1995, p. 122), and paragraphs 38 and 39 of its resolution of 23 May 1996 on Parliament's estimates for 1997 (OJ C 166, 10.6.1996, p. 184).

)); consequently rejects the proposed upgradings and accepts the creation of 3 new temporary posts: 1 A7, 1 B5 and 1 C5;

23. Instructs its President to forward this resolution to the institutions concerned and to the Ombudsman.