PRELIMINARY DRAFT SUPPLEMENTARY AND AMENDING BUDGET n°5 TO THE BUDGET FOR 2001 SECTION I - PARLIAMENT

(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, 20.4.2001, p. 1.

Having received the request by the Parliament , the European Commission hereby presents to the budgetary authority the draft supplementary and amending budget N°5 to the 2001 budget for the reasons set out below.

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A technical annex regarding the financing of the present supplementary and amending budget is being drawn up separately.

EXPLANATORY STATEMENT

1. The European Parliament's property policy has now been laid down and implemented for a number of years. It consists of ensuring that buildings suited to the institution's specific needs are available in its various places of work; purchasing the buildings occupied on the basis of the most appropriate legal arrangements; and financing the purchase over a relatively short period in order to reduce the burden of property expenditure on future budgets.

On the basis of decisions taken by other bodies, Parliament is required to carry out its activities in three main places of work: Brussels, Luxembourg and Strasbourg. This represents a severe financial constraint.

2. In order to reduce as far as possible this financial burden which has a significant impact on its own budget, the European Parliament, during the last 10 years, has made advance payments in order to speed up the payment of the buildings costs and thus reduce the burden of property expenditure on future budgets.

The report of the Secretaries general on the multiannual evolution of Heading 5 and the possible savings in the context of the interinstitutional cooperation underlined in its main conclusions that the possible savings during 2003 will not be sufficient to cover the necessary additional expenses for the next enlargement.

Under these circumstances, SAB for the European Parliament in 2001 would help to anticipate payments for buildings foreseen in 2003.

3. In particular, these advance payments were made possible by two supplementary and amending budgets in 1996 and 1998 and by the savings made by the institution since 1992 in its operating budget.

Thus far the early payment operations as well as normal payments have resulted in the full repayment of the PAUL-HENRI SPAAK building during the 1995 and 1996 financial year. The total outstanding amount of the SPINELLI building has been repaid by July 2001.

4. These advance payments had a beneficial impact on the European Parliament current budget. Had these advance payments not been made, the European Parliament's 2002 budget would need to have been increased over and above the ceiling of 20 % of the appropriations available under Chapter five " Administrative expenditure" of the Financial Perspectives.

5. Considering the current property situation, the European Parliament should continue with the early repayment method in order to reduce the burden of property expenditure on its future budgets. The advance payment policy in respect of the LOUISE WEISS building in Strasbourg should be continued. At current prices, an advance payment of EUR 10 million will generate an estimated saving in terms of interest payments of EUR 1.8 million over a 10-year period.

6. On these grounds, it is herewith requested that appropriations totalling EUR 24 800 000 are being made available in the 2001 budget for an accelerated financing of the LOUISE WEISS building.

7. For the 2001 financial year, the margin available under heading 5, administrative expenditure is EUR 24 859 163.

Summary table

Effect of the SAB on the financial perspective

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STATEMENT OF REVENUE AND EXPENDITURE BY SECTION

SECTION I - PARLIAMENT

REVENUE

Contribution of the European Communities to the financing of the expenditure

of Parliament for the financial year 2001

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EXPENDITURE

TITLE 2

BUILDINGS, EQUIPMENT AND MISCELLANEOUS OPERATING EXPENDITURE

CHAPTER 2 0 -- INVESTMENTS IN IMMOVABLE PROPERTY, RENTAL OF BUILDINGS AND ASSOCIATED COSTS

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