PRELIMINARY DRAFT AMENDING BUDGET No 2 TO THE BUDGET FOR 2003 - GENERAL STATEMENT OF REVENUE - STATEMENT OF REVENUE AND EXPENDITURE BY SECTION - Section VII - Committee of the Regions

(presented by the Commission)

Having regard to:

- the Treaty establishing the European Community, and in particular Article 272 thereof,

- the Treaty establishing the European Atomic Energy Community, and in particular Article 177 thereof,

- the Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities [1], and in particular Article 37 thereof,

[1] OJ L 248, 16.09.2002, p.1.

The European Commission hereby transmits to the budgetary authority the preliminary draft amending budget No 2 to the 2003 budget, requested by the Committee of the Regions for the reasons set out in the explanatory memorandum.

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TABLE OF CONTENTS

EXPLANATORY MEMORANDUM

1. Introduction

2. 2003 Budget: Budgetary consequences of participation of applicant country representatives in CoR activities.

SUMMARY TABLE PER HEADING OF THE FINANCIAL PERSPECTIVE

GENERAL STATEMENT OF REVENUE

A. FINANCING OF THE GENERAL BUDGET

B. GENERAL STATEMENT OF REVENUE

STATEMENT OF REVENUE AND EXPENDITURE BY SECTION

EXPLANATORY MEMORANDUM

1. INTRODUCTION

Since 1997 the Committee of the Regions has carried out a number of initiatives aimed at establishing contacts with the local and regional authorities of the applicant countries and launching an exchange of information which, in some cases, has enabled these authorities to be better informed on the consequences of accession and the measures needing to be taken.

Following these first meetings, an ad hoc Bureau group, the CoR/CEEC - Cyprus Liaison Group, was set up in May 1998. The group's main task was to meet local and regional elected representatives from the first-wave applicant countries with a view to establishing regular relations between the CoR and these authorities.

In parallel, from 2000 onwards, representatives of the regional and local authorities of the applicant countries attended CoR plenary sessions and commission meetings, making use of the financial resources granted by the budget authority (Article 251 of the CoR budget, Meetings expenses of representatives of the applicant countries).

In this context the CoR, like the European Parliament, would like to welcome, from July 2003 onwards, 95 observers from the 10 applicant countries which will be joining the EU as full members in 2004.

2. 2003 BUDGET: BUDGETARY CONSEQUENCES OF PARTICIPATION OF APPLICANT COUNTRY REPRESENTATIVES IN COR ACTIVITIES.

In April 2002, at the time of adopting its 2003 preliminary draft budget, the CoR was unable to include in the draft budget any significant request concerning the possible participation of representatives of the enlargement countries. This was primarily because the timing of the enlargement had not been decided at that stage, and because the European Parliament had not taken any decision as to how it intended to deal with the same question.

It has recently become evident that the European Parliament intends to invite representatives of the accession countries to participate as observers in EP activities in 2003, and the Parliament has at its disposal a reserve fund that it can use for this. For the Committee of the Regions, as a political institution, it is essential to follow a similar approach.

However, this will have budgetary implications. We estimate that an extra sum of approximately EUR350,000 must be provided for in the CoR 2003 budget. This amount will cover the participation of approximately 95 members from the accession states at three plenary sessions, starting from July 2003.

The provisions for the participation of the observers in the plenary sessions would have to be found under heading 251 (Meetings expenses of representatives of the applicant countries).

SUMMARY TABLE PER HEADING OF THE FINANCIAL PERSPECTIVE

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GENERAL STATEMENT OF REVENUE

A. FINANCING OF THE GENERAL BUDGET

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B. GENERAL STATEMENT OF REVENUE

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TITLE 3

SURPLUSES AVAILABLE

CHAPTER 30 - SURPLUS AVAILABLE FROM THE PRECEDING YEAR

Article 300 Surplus available from the preceding financial year

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STATEMENT OF REVENUE AND EXPENDITURE BY SECTION

SECTION VII - COMMITTEE OF THE REGIONS

EXPENDITURE

CHAPTER 25 - MEETINGS AND CONVOCATION EXPENSES

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