AMENDING LETTER No 2 TO THE PRELIMINARY DRAFT BUDGET FOR 2004 - VOLUME 1 GENERAL STATEMENT OF REVENUE - VOLUME 4 STATEMENT OF REVENUE AND EXPENDITURE BY SECTION - Section III - Commission

(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 34 thereof,

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

The European Commission hereby presents to the budgetary authority the amending letter No 2 of the preliminary draft budget for 2004 for the reasons set out in the explanatory memorandum.

EXPLANATORY MEMORANDUM

1. Introduction

The Interinstitutional Agreement on budgetary discipline and improvement of the budgetary procedure signed by the European Parliament, the Council and the Commission on 6 May 1999 provides that, "if it considers it necessary, the Commission may present to the budgetary authority an ad hoc letter of amendment to update the figures underlying the estimate of agricultural expenditure in the preliminary draft budget and/or to correct, on the basis of the most recent information available concerning fisheries agreements in force on 1 January of the financial year concerned, the breakdown between the appropriations entered in the operational items for international fisheries agreements and those entered in reserve." This letter of amendment must be sent to the budgetary authority by the end of October.

The Commission presents herewith this ad hoc amending letter for the budget 2004. It covers the following elements:

- Agricultural expenditures : update on the estimated needs for Heading 1

- External Actions : update on the international fisheries agreements concluded

The amending letter to the preliminary draft budget 2004 is based on the needs of the enlarged Union, in the same way as the PDB itself was established for the EU-25. However, the technical annex also shows for each line an update of appropriations for the 15 Member States and of the additional appropriations needed for enlargement.

Agricultural expenditures

The Commission has carefully updated the agricultural budget on a line by line basis. In addition to changing market factors, the letter of amendment also incorporates legislative decisions adopted in the agricultural sector since the PDB was drawn up, as well as any proposals, which are expected to have effect during the coming budget year. The euro-dollar rate used, in accordance with the Council Regulation on Budgetary Discipline, is based on the actual rate observed between 1 July and 30 September 2003. It comes to 1.12 (EUR1=$1.12), and results in some increases compared to the preliminary draft for export sectors, in particular sugar.

For subheading 1a (CAP expenditure except for rural development), the new assessment leads to lower needs than estimated in the PDB (- EUR1 092.5 million). This sizeable decrease is largely explained by decreased needs in three sectors. The most substantial change is that of market measures for cereals (- EUR741 million). Drought during the summer of 2003 has meant a dramatic decline in harvests, which in turn means lower quantities for export, and an important reduction in the estimates for intervention stocks. Also as a result of the adverse climatic conditions, some direct aids in the animal sector were advanced, and paid from the 2003 budget. Thus savings for 2004 have been recorded in the case of beef and veal

(- EUR107 million), and for sheep and goat meat (- EUR303 million). These savings have been slightly offset by increased needs for other sectors, notably dried fodder (+ EUR64 million).

Overall needs for subheading 1a are estimated at EUR40 245.3 million, EUR1 092.5 million lower than in the preliminary draft, leaving a margin of approximately EUR2 523.7 million below the ceiling of the Financial Perspectives for EU-25.

For rural development (subheading 1b), the Commission proposes to maintain the commitment appropriations in the 2004 budget at the ceiling of the Financial Perspective (EUR4 803 million for EU-15, and EUR1 733 for EU-10). Likewise, payment appropriations remain unchanged for both EU-15 and EU-10, at EUR4 803 million and EUR645 million, respectively.

2. Heading 1: Agriculture

The purpose of the amending letter (AL) is to ensure that the agricultural budget is based on the most up-to-date economic data and legislative framework. By the month of October, the Commission has at its disposal a first indication of the level of production (harvests) for 2003, which is the basis for any reliable estimate of the budgetary needs for 2004.

As in the past, the Commission has carefully reviewed all its estimates of agricultural expenditure line by line. Besides taking into account market factors, the letter of amendment also incorporates legislative decisions adopted in the agricultural sector since the preliminary draft budget was drawn up, as well as proposals.

In accordance with the Council Regulation on Budgetary Discipline, the letter of amendment is based on the euro-dollar rate recorded between 1 July and 30 September 2003. The rate comes to 1.12 (EUR1 = $1.12), and results in some increases compared to the preliminary draft budget (EUR1 = $1.07), notably for sugar and cotton.

For subheading 1a (CAP expenditure except for rural development), the new assessment leads to lower needs than estimated in the PDB (- EUR1 092.5 million). Total requirements for subheading 1a are estimated at EUR40 245.3 million, leaving a margin of EUR2 523.7 below the ceiling of the Financial Perspective, which is EUR42 769 million for the EU-25.

For rural development (subheading 1b), the Commission proposes to maintain the appropriations in the 2003 budget at the ceiling of the Financial Perspective (EUR6 536 million). The breakdown of appropriations between the various measures for the EU-15, however, has been updated, in line with Member States' communications.

The following table sums up the budgetary forecasts for the various chapters of the EAGGF Guarantee Section, and shows the margins under the Financial Perspectives.

Letter of Amendment N° 2/2004

Heading 1, by ABB policy area

million EUR

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2.1. Subheading 1a: CAP expenditure except for rural development

2.1.1. The market organisations and related expenditure

In the letter of amendment, the total appropriations for subheading 1a (CAP expenditure except for rural development) are lower than estimated in the PDB (- EUR1 092.5 million). This saving is the result of a combination of increases and reductions across the different sectors.

Most significant is the reduction concerning market measures for cereals, where savings of EUR741 million are envisaged. The drought of summer 2003 has meant that harvests in both the Member States and accession countries are substantially lower, and so there are smaller quantities for export with refund, and for entry into intervention. Likewise, the adverse weather conditions in several Member States prompted the Commission to agree to advances in the payment of premiums for bovines, sheep and goats. The combined savings to the 2004 budget in these sectors is estimated at EUR410 million euro. A reduction in credits is also entered for the wine sector (-EUR133 million). This results from a lower level of production, which reduces the needs for distillation, and public intervention.

In contrast, there are increases in a number of sectors. The outcome of the mid-term review of the CAP has led to the postponement of the reform of the dried fodder sector until 2005, so that needs increase by EUR64 million compared to the PDB. The recent rate of execution of the lines concerning clearance of accounts, and the reduction/suspension of advances, lead to the conclusion that recoveries will not be as great as foreseen in the PDB (- EUR450 million), therefore the figure has been revised, increasing the overall budget by EUR50 million. Updated world prices and the strength of the euro are largely responsible for greater needs for the sugar sector, where credits rise by EUR40 million.

The Commission has also taken into account the opinions expressed by the Budgetary Authority during its first reading. In order to incorporate these wishes into the amending letter the Commission proposes the following modifications:

* EUR500 000 will be made available under 05 01 04 01 Support expenditure to enable further examination of the environmental indicators to be used in the context of the cross-compliance rules, as adopted under the mid-term review of the CAP.

* A new budget line 05 01 04 06 with credits of EUR500 000 will be created. The purpose is to enable the exploration of the possibility of establishing European quality labels, so as to ensure transparency for consumers.

* Budget line 05 03 02 01 Export refunds for beef and veal shall be subdivided to ensure transparency between those credits intended for export refunds for meat, and those for live exports.

* The increase in costs related to animal diseases, and the different approaches of MS to compensation for those costs not covered by the Community has given rise to concern. The Commission proposes the creation of a new line 17 01 04 04 for a pilot study on the financing of risks for livestock epidemics. The appropriations of EUR500 000 are intended to cover further studies and a conference in this domain.

2.1.2. Changes in legislation

Since the adoption of the preliminary draft budget, there have been some legislative decisions concerning Heading 1, in particular, the adoption of the legislative proposals for the mid-term review of the CAP. Changes were made to these proposals during the decision-making procedure, and the most notable difference, for this amending letter, is the increase in needs for dried fodder Reform of the sector will now only begin from 2005.

In the case of the measure to support fisheries in the ultra periphery no appropriations were entered in the PDB, since at that time of the PDB the legal base for this measure had expired. A proposal, COM(2003)516 final, is now under discussion, and so credits of EUR15 million are proposed to cover this measure in 2004

More detailed information on legislative changes is given in the section on sectoral developments.

2.1.3. Euro-dollar exchange rate

In accordance with Article 8(1) of Council Regulation (EC) n°2040/2000 on budgetary discipline, the euro-dollar rate to be used for the letter of amendment is the average rate over the most recent three-month period. In the case of this letter of amendment, this means the period between 1 July and 30 September 2003. The average exchange rate recorded is EUR1 = $1.12, which is higher than the rate used for the preliminary draft (EUR1 = $1.07). This leads to some increases, particularly for sectors such as sugar and cotton.

2.1.4. Sectoral Developments

The comments below set out and explain the main differences between the appropriations of the PDB and those of the AL.

05 01 04 01 - Monitoring and prevention: direct payments by the EC: expenditure on administrative measures (appropriations + EUR0.5 million)

Appropriations in preliminary draft budget: EUR3.86 million

Appropriations after letter of amendment: EUR4.36 million

The credits are intended to enable further examination of the environmental indicators to be used in the context of cross-compliance.

05 01 04 06 - Quality Labels (NEW LINE)

Appropriations in preliminary draft budget: none

Appropriations after letter of amendment: EUR0.5 million

The credits are intended to cover examination of the possibilities for European quality labels.

05 02 01 - Market measures for cereals (appropriations - EUR741 million)

Appropriations in preliminary draft budget: EUR1 304 million

Appropriations after letter of amendment: EUR563 million

According to the latest forecasts, drought has reduced the EU cereals output for 2003/2004 by approximately 18 million tonnes, and a similar situation prevails in the accession countries, where production is down some 13%. This has had a sizeable effect on the budgetary needs for the sector. In particular, expenditure on intervention storage measures is estimated at a much lower level than in the PDB (- EUR442 million). The table below illustrates the present situation as compared to that of the PDB.

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With a stronger euro, one might have expected increased needs for export refunds. However, these too fall, by a total of EUR358 million for the EU-25. With supply low, world market prices are buoyant, and where refunds do come into play, the smaller export quantities also result in lower budgetary costs.

05 02 02 - Rice (appropriations - EUR36 million)

Appropriations in preliminary draft budget: EUR211 million

Appropriations after letter of amendment: EUR175 million

The decrease in budget needs for the rice sector can be explained by changing patterns in intervention and per hectare aids. As the table below illustrates, levels of incoming stocks are now estimated at a lower level than foreseen in the PDB. This is expected to lead to budgetary savings in the region of EUR16 million.

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Direct aids are now estimated at EUR109 million, EUR20 million lower than at the time of the PDB. This change can be almost entirely explained by the overshoot of the base area by Spanish producers, and the resulting penalty of aid reduction.

05 02 03 - Direct payments for arable crops (appropriations + 31EUR million)

Appropriations in preliminary draft budget: EUR17 028 million

Appropriations after letter of amendment: EUR17 059 million

Since the new Member States will not be eligible for direct aids in budget year 2004, only the EU-15 is concerned here. Latest information from the MS, shows a sizeable decrease in needs for direct aids for cereals other than the base area for maize (- EUR256 million), however, this is offset by increased needs for other crops, notably for oilseeds (+ EUR136 million), and for set-aside (+ EUR71 million).

05 02 04 - Food programmes (appropriations - EUR8 million)

Appropriations in preliminary draft budget: EUR234 million

Appropriations after letter of amendment: EUR226 million

The appropriations for refunds in connection with food aid have been reduced by EUR8 million in line with the smaller quantity of rice used for this purpose, and a smaller level of refunds for cereals and rice.

05 02 05 - Sugar and monetary measures (appropriations + EUR47 million)

Appropriations in preliminary draft budget: EUR1 664 million

Appropriations after letter of amendment: EUR1 711 million

In the sugar sector estimated expenditure for refunds is EUR14 million more than the appropriations in the 2004 preliminary draft budget. Firstly, the Commission expects market prices to stabilise at the low level foreseen in the PDB. To calculate refund rates, a world price of USD 195/tonne has been used; the updated euro-dollar exchange rate induces additional expenditure. Both elements combined translate into a refund rate of EUR503, instead of EUR487 per tonne.

Moreover, the quantities foreseen for the refunds on sugar used for the chemical industry have been updated (from 0.4 to 0.45 million tonnes). This, together with the changes in the refunds, leads to an increase of EUR26 million.

05 02 06 - Olive oil (appropriations + EUR13 million)

Appropriations in preliminary draft budget: EUR2 351 million

Appropriations after letter of amendment: EUR2 364 million

The appropriations for olive oil have been increased by EUR13 million mainly due to the updating of production levels. The PDB requirements were based on a first estimate of production.

05 04 07 - Textile plants (appropriations + EUR7 million)

Appropriations in preliminary draft budget: EUR879 million

Appropriations after letter of amendment: EUR886 million

The increase in appropriations is mainly due to the adjustment of the euro-dollar rate.

05 02 08 - Fruit and vegetables (appropriations + EUR18 million)

Appropriations in preliminary draft budget: EUR1 599 million

Appropriations after letter of amendment: EUR1 617 million

Forecast expenditure for fruit and vegetables is slightly higher vis-à-vis the PDB due to an increase in the production aid for fruit-based products (+ EUR8 million). In fact, the aid for plums (EUR804.15/tonne) is now higher than at the moment of the preliminary draft budget (EUR671.73/tonne).

The expenditure for compensation to encourage processing of citrus fruits is also higher (+ EUR8 million) due to a larger quantity and a higher aid for the processing of oranges.

There is a small increase (+ EUR3 million) in expenditure for production aid and intervention for dried grapes due to an adjustment of the average aid.

05 02 09 - Products of the vine-growing sector (appropriations - EUR133 million)

Appropriations in preliminary draft budget: EUR1 348 million

Appropriations after letter of amendment: EUR1 215 million

Considerable savings are seen for this article (- EUR133 million). As a result of climatic conditions the vine production is lower than foreseen at the moment of the preliminary draft budget. As a result the volumes for distillation are revised downwards. For distillation into potable alcohol a volume of 10.5 million hl is foreseen instead of 12.5 million, and for distillation under the "crisis" scheme only 4 million is foreseen giving a global saving of EUR85 million.

Consequently, for public intervention of alcohol, lower appropriations (- EUR48 million) are foreseen, due to smaller purchases (1.607 million hl instead of 2.052 million hl), and a higher selling price (EUR14/hl instead of EUR13/hl).

05 02 10 - Tobacco (appropriations - EUR1 million)

Appropriations in preliminary draft budget: EUR942.4 million

Appropriations after letter of amendment: EUR941.4 million

The governing regulation allows for the transfer of production of one variety of tobacco for another. This fixing of the quantities transferred results in a decrease in appropriations of EUR1 million.

05 02 11 - Other measures for plant products (requirements + EUR48 million)

Appropriations in preliminary draft budget: EUR732 million

Appropriations after letter of amendment: EUR780 million

With no change in the estimates for seeds or hops, and small decreases in needs for the ultra peripheral regions (- EUR5 million), and the aid regime for small producers (- EUR11 million), the key to the increasing needs lies in the dried fodder sector. At the time of the PDB needs for this sector were calculated on the basis of the Commission's proposals for the mid-term review of the CAP. In the case of dried fodder, production aid was to be gradually phased out, with the first cut taking place in budget year 2004. The final outcome of the decision-making process, however, is that one single cut in aid shall take place in budget year 2005. Thus, the amending letter uses the existing aid rate to calculate needs of EUR312 million, an increase of EUR64 million compared to the PDB.

05 03 01 - Milk and milk products (appropriations + EUR34 million)

Appropriations in preliminary draft budget: EUR2 925 million

Appropriations after letter of amendment: EUR2 959 million

Expenditure for milk and milk products is seen to increase (+ EUR34 million). This is the consequence of larger quantities for both export and intervention, and the impact of the increase of the euro-dollar exchange rate (lower world prices in euro). The result is an increase in public stocks and in forecast rates for export refunds and internal aid.

An upwards revision of the refund rates and volumes has led to increases of EUR73 million for butter and butteroil, EUR32 million for skimmed milk powder, and EUR15 million for cheese.

As regards intervention in the form of aid for the use of skimmed milk, a higher aid for skimmed milk processed into casein has led to an increase of EUR29 million and a bigger quantity attracting aid has led to a small increase of EUR3 million for skimmed milk powder for use as feed for calves.

As for public intervention for skimmed milk powder, more appropriations (EUR13 million) were foreseen due to higher opening stocks (200 000 tonnes instead of 95 500 tonnes) and greater purchases (35 000 tonnes rather than 17 000 tonnes).

These increases are partially offset by decreases for public intervention for butter (- EUR24 million), which is especially due to sales of 50 000 tonnes rather than 10 000 tonnes. A slight decrease in the volume (498 000 tonnes instead of 514 000 tonnes) used for other measures relating to butterfat gives a saving of EUR13 million.

The needs for non-annex I products (obtained by processing skimmed milk powder and butter) are revised downward (-EUR11 million), especially due to a lower use of butter (47 600 tonnes instead of 55 000 tonnes).

Following the Council Decision of 16 July 2003 on the compatibility with the common market of an aid that the Italian Republic intends to grant to its milk producers, Italy will pay a total amount of EUR249.6 million in three yearly instalments of equal size, from the expenditure financed by the EAGGF for November 2003, November 2004 and November 2005 respectively. For Budget 2004 an amount of EUR83 million is involved.

05 03 02 - Beef and veal (appropriations - EUR 107 million)

Appropriations in preliminary draft budget: EUR8 161 million

Appropriations after letter of amendment: EUR 8 054 million

The decrease in appropriations for beef and veal can be attributed to several factors. The lower estimates of beef exports leads to savings of EUR20 million. In order to alleviate the financial difficulties of producers arising from drought in several MS during summer 2003, the Commission decided to open the possibility to increase the amount of the advance payments of some premium schemes. As a result of this measure a further decrease of EUR101 million in appropriations is envisaged. Concerning; the exceptional support measures taken for the UK, two measures have been adjusted. 1) For the over thirty months scheme (OTMS), rates and volumes have been adjusted to reflect market evolution, leading to a reduction of EUR78 million. 2) The amount budgeted for selective culling has been reduced by EUR 50 million.

The Court of Justice has found against the Commission in the case of special support measures installed when the beef market went through a BSE-related crisis. The Commission adopted regulation n°690/2001, allowing for the purchase of animals over thirty months, and subsequent storing of their meat. The Commission introduced a co-financing rate of 70% for the scheme, but the Court has ruled that when in a common market organisation special support measures are taken (intervention) the total financial consequences are to be borne by the Community. For this, an amount of EUR114 million has been included in the PDB.

05 03 03 - Sheep meat and goat meat (appropriations - EUR303 million)

Appropriations in preliminary draft budget: EUR1 833 million

Appropriations after letter of amendment: EUR1 530 million

The appropriations for sheep and goat meat have been reduced (- EUR303 million), by the same amount as the advance of direct payments foreseen from the 2004 budget to the 2003 budget.

05 03 04 - Pig meat, eggs, poultry and others (appropriations - EUR28 million)

Appropriations in preliminary draft budget: EUR202.5 million

Appropriations after letter of amendment: EUR174.5 million

For pig meat the difference in relation to the preliminary draft (- EUR30 million) is entirely accounted for by a decrease in the quantities foreseen for subsidised exports.

For eggs there is an amount of EUR3 million foreseen for exceptional market support measures to deal with the economic consequences of avian influenza. A downward revision of the refund rates for non-annex 1 products (obtained by processing eggs) has led to a decrease of the appropriations by EUR1 million.

05 07 01 03 - Clearance of accounts and reduction/suspension of advances (appropriations + EUR50 million)

Appropriations in preliminary draft budget: - EUR450 million

Appropriations after letter of amendment: -EUR400 million

The difference with the PDB (+ EUR50 million) takes into account the outturn of 2002 (- EUR235.1 million), and the estimated outturn for 2003 (- EUR387.4 million).

2.2. Subheading 1a: items under other policy areas

11 02 03 - POSEI - fisheries (appropriations + EUR15 million)

Appropriations in preliminary draft budget: p.m.

Appropriations after letter of amendment: EUR15 million

At the time of the PDB the legal base for this measure had expired, and so no credits were entered on this line. A proposal, COM(2003)516 final, is now under discussion for a Council Regulation introducing a scheme to compensate for the additional costs incurred in the marketing of certain fishery products from the Azores, Madeira, the Canary Islands and the French departments of Guiana and Reunion as a result of those regions' remoteness, and so credits of EUR15 million are proposed to cover this measure in 2004.

17 01 04 04 - Pilot study: Risk financing model for livestock epidemics (NEW LINE)

Appropriations in preliminary draft budget: none

Appropriations after letter of amendment: EUR0.5 million

The European Parliament has shown its concern for the extension of the costs related to the outbreak of animal diseases, and in particular for the different approaches used by Member States to compensate for the costs not covered by a Community refund. The Commission has already carried out a study, as a first step towards better knowledge of a complex trans-sectorial issue.

In order to progress in that field, and in particular to carry out further studies and to hold a conference with the relevant authorities and specialists from Member States, the Commission proposes to create a new line (17 01 04 04 - Pilot study: Risk financing model for livestock epidemics), with an appropriation of EUR500 000.

17 04 03 - Emergency fund (appropriations unchanged)

Appropriations in preliminary draft budget: EUR48 million

Appropriations after letter of amendment: EUR48 million

The appropriations for line 17 04 03 (Emergency fund) are unchanged. However, the level of the reimbursement for costs incurred by the Member States for the eradication of foot-and-mouth disease and avian influenza has not been yet decided in some cases. Therefore the appropriations for line 17 04 03 might possibly be adjusted, at a later stage, with the appropriate budgetary instrument.

2.3. Subheading 1b: rural development

05 04 01 - Rural development in the EAGGF-Guarantee EU-15 (appropriations unchanged)

Appropriations in preliminary draft budget: EUR4 803 million

Appropriations after letter of amendment: EUR4 803 million

The Commission has not changed its position regarding the overall level of appropriations, which corresponds to the ceiling permitted by the Financial Perspective. The breakdown of appropriations between the various measures, however, has been updated, in line with Member States' communications.

2.4. Changes in the nomenclature

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3. Heading 4 : External Actions

3.1. International fisheries agreements

The Commission proposes to amend the Preliminary draft budget as follows:

- Budget item 11 03 01 International fisheries agreements: EUR 168 422 561 in commitment appropriations (compared to EUR 165 493 000 in the PDB) and EUR 172 922 561 in payment appropriations (compared to EUR 171 243 000) for agreements in force by 31 December 2003.

- Provisional appropriations chapter 31 02: EUR 19 645 693 in commitment appropriations (compared to EUR 22 575 254 in the PDB) and EUR 20 895 693 in payment appropriations (compared to EUR 22 575 254 in the PDB).

There is an increase on item 11 03 01 of EUR 2 929 561 in commitment appropriations and of 1 679 561 in payment appropriations. The amounts entered in the reserve are reduced with the same amounts since the uncertainties that existed at the time of drafting the PDB have now been removed. The net overall effect is thus null since the increase on item 11 03 01 is balanced by a corresponding reduction of chapter 31 02.

The major reasons for the proposed changes compared to the PDB are:

* Four protocols have been renewed and/or extended during 2003 (Madagascar, Mauritius, Republic of Guinea and Ivory Coast), for a total amount of EUR 6 169 561. The adaptation of the agreement with Guinea-Bissau will lead to a reduction of the financial contribution (minus EUR 3 240 000).

* As far as the "reserve" is concerned, this has to allow for the possible renewal and/or conclusion of agreements/financial protocols in 2004.

* Lastly, the figure for payment appropriations on item 11 03 01 is overall some EUR 4.5 million higher compared to the commitment appropriations because of the amount of outstanding payments to be made.

SUMMARY TABLE PER HEADING OF THE FINANCIAL PERSPECTIVE

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VOLUME 4 - BOOK I

SECTION III - COMMISSION

EXPENDITURE

Summary table

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Title 05 -- Agriculture and Rural Development

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Chapter 05 01 -- ADMINISTRATIVE EXPENDITURE OF POLICY AREA AGRICULTURE

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Article 05 01 04 -- Support expenditure for operations of POLICY AREA AGRICULTURE

Item 05 01 04 01 -- Monitoring and prevention -- Direct payments by the European Community -- Expenditure on administrative management

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Remarks

For the financial year 2004, the breakdown is as follows:

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New item

Item 05 01 04 05 -- Plant and animal genetic resources -- Expenditure on administrative management

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Remarks

For the financial year 2004, the breakdown is as follows:

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This appropriation is intended to cover expenditure on studies, meetings of experts, information and publications directly linked to realising the objective of the programme or on activities covered by this item and any other technical or administrative assistance expenditure not involving public authority tasks outsourced by the Commission under ad hoc service contracts.

Legal basis

Proposal for a Council regulation, submitted by the Commission on .......... on the conservation, characterisation, collection and utilisation of genetic resources in agriculture (COM (......) 2003).

New item

Item 05 01 04 06 -- Promotion of quality schemes in agriculture

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Remarks

For the financial year 2004, the breakdown is as follows:

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The appropriations may be used for studies concerning quality assurance and certification schemes for integrated supply chain management and the opportunity of a Community legal framework for protection of such schemes. The appropriations may be also used for seminars, expert meetings, consultation of relevant market parties and information and publication on the outcome of the studies.

Chapter 05 02 -- PLANT PRODUCTS

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Article 05 02 01 -- Market measures on cereals

Item 05 02 01 01 -- Export refunds for cereals

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Remarks

For the financial year 2004, the breakdown is as follows:

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Item 05 02 01 02 -- Intervention storage of cereals

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Remarks

For the financial year 2004, the breakdown is as follows:

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Item 05 02 01 03 -- Intervention for starch

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Remarks

For the financial year 2004, the breakdown is as follows:

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Item 05 02 01 04 -- Refunds on non-Annex 1 products (cereals and rice)

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Remarks

For the financial year 2004, the breakdown is as follows:

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New item

Item 05 02 01 05 -- Special aid for Portuguese producers

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Remarks

For the financial year 2004, the breakdown is as follows:

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This appropriation is intended to cover, inter alia, aid granted to Portuguese producers of cereals placed on the market or sold by the producer to an intervention agency.

Legal basis

Council Regulation (EEC) No 3653/90 of 11 December 1990 introducing transitional measures governing the common organisation of the market in cereals and rice in Portugal (OJ L 362, 27.12.1990, p. 28), as last amended by Regulation (EC) No 1664/95 (OJ L 158, 8.7.1995, p. 13).

Item 05 02 01 99 -- Other interventions for cereals

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Remarks

For the financial year 2004, the breakdown is as follows:

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This item is intended to take account of:

* amounts recovered in cases of irregularity or fraud pursuant to Regulation (EEC) No 595/91,

* penalties and interest received, in particular those collected pursuant to Articles 51 and 52 of Regulation (EC) No 800/1999,

* securities forfeited and, in particular, those to be credited to the EAGGF pursuant to the proposal for a regulation,

* amounts retained pursuant to Article 7 of Regulation (EEC) No 595/91,

where the payment was originally entered in the accounts under Article 05 02 01.

However, amounts relating to public storage operations will continue to be entered in the storage accounts.

This item is also intended to cover other per hectare compensatory payments.

Legal basis

Council Regulation (EEC) No 595/91 of 4 March 1991 concerning irregularities and the recovery of sums wrongly paid in connection with the financing of the common agricultural policy and the organisation of an information system in this field, and repealing Regulation (EEC) No 283/72 (OJ L 67, 14.3.1991, p. 11).

Commission Regulation (EC) No 800/1999 of 15 April 1999 laying down common detailed rules for the application of the system of export refunds on agricultural products (OJ L 102, 17.4.1999, p. 11), as last amended by Regulation (EC) No 444/2003 (OJ L 67, 12.3.2003, p. 3).

Article 05 02 02 -- Rice

Item 05 02 02 02 -- Intervention storage of rice

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Remarks

For the financial year 2004, the breakdown is as follows:

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Item 05 02 02 04 -- Per hectare aid for rice

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Remarks

For the financial year 2004, the breakdown is as follows:

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Article 05 02 03 -- Direct payments for arable crops

Item 05 02 03 01 -- Aid for producers of maize

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Remarks

For the financial year 2004, the breakdown is as follows:

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Item 05 02 03 02 -- Aid for producers of cereals not subject to the base area for maize

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Remarks

For the financial year 2004, the breakdown is as follows:

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Item 05 02 03 03 -- Aid for producers of soya beans, rape seed and sunflower seed

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Remarks

For the financial year 2004, the breakdown is as follows:

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Item 05 02 03 04 -- Aid for producers of peas, field beans and sweet lupins

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Remarks

For the financial year 2004, the breakdown is as follows:

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Item 05 02 03 05 -- Aid for producers of non-textile flax seed and of flax and hemp grown for fibre

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Remarks

For the financial year 2004, the breakdown is as follows:

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Item 05 02 03 06 -- Supplementary aid for durum wheat: traditional production zones

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Remarks

For the financial year 2004, the breakdown is as follows:

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Item 05 02 03 07 -- Supplementary aid for durum wheat: zones other than traditional production zones

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Remarks

For the financial year 2004, the breakdown is as follows:

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Item 05 02 03 08 -- Aid for grass silage

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 02 03 09 -- Set-aside

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 02 03 99 -- Other expenditure related to direct payments for arable crops

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Modify the remarks as follows:

This article is intended, in particular, to take account of:

-- amounts recovered in cases of irregularity or fraud pursuant to Regulation (EEC) No 595/91,

-- penalties and interest received, in particular those collected pursuant to Articles 51 and 52 of Regulation (EC) No 800/1999,

-- securities forfeited and, in particular, those to be credited to the EAGGF pursuant to the proposal for a regulation,

-- amounts retained pursuant to Article 7 of Regulation (EEC) No 595/91,

where the payment was originally entered in the accounts under Article 05 02 03.

However, amounts relating to public storage operations will continue to be entered in the storage accounts.

This item is also intended to cover other per hectare compensatory payments.

Article 05 02 04 -- Food programmes

Item 05 02 04 02 -- Food aid

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Article 05 02 05 -- Sugar and monetary measures

Item 05 02 05 01 -- Export refunds on sugar and isoglucose

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 02 05 03 -- Production refunds on sugar used in the chemical industry

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 02 05 05 -- Refunds on non-Annex 1 products (sugar)

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

New item

Item 05 02 05 07 -- Adjustment aid for refinery industry

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

This item is intended to cover expenditure under the common organisation of the market in sugar, in particular expenditure incurred in accordance with the second subparagraph of Article 7(4), and Articles 33(2) and 38 of Regulation (EC) No 1260/2001.

Legal basis

Council Regulation (EEC) No 768/89 of 21 March 1989 establishing a system of transitional aids to agricultural income (OJ L 84, 29.9.1989, p. 8).

Council Regulation (EEC) No 595/91 of 4 March 1991 concerning irregularities and the recovery of sums wrongly paid in connection with the financing of the common agricultural policy and the organisation of an information system in this field, and repealing Regulation (EEC) No 283/72 (OJ L 67, 14.3.1991, p. 11).

Commission Regulation (EC) No 800/1999 of 15 April 1999 laying down common detailed rules for the application of the system of export refunds on agricultural products (OJ L 102, 17.4.1999, p. 11), as last amended by Regulation (EC) No 444/2003 (OJ L 67, 12.3.2003, p. 3).

Item 05 02 05 99 -- Other expenditure for sugar

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Remarks

Modify the first two paragraphs as follows:

This appropriation is intended to cover the outstanding expenditure on accession compensatory amounts paid in 1995 and on monetary compensatory amounts, the Community's financial contribution to aid granted in accordance with Title 2 of Regulation (EEC) No 768/89 and any outstanding interest payments to Member States, calculated on the basis of application of Article 5a of Regulation (EEC) No 729/70.

Article 05 02 06 -- Olive Oil

Item 05 02 06 02 -- Production aid and schemes related to production of olive oil

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

New item

Item 05 02 06 04 -- Other measures for olive oil

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

This appropriation is intended to cover expenditure in respect of the granting of a production refund for olive oil used in the manufacture of preserved fish and vegetables, in accordance with Article 20a of Regulation No 136/66/EEC.

Legal basis

Council Regulation No 136/66/EEC of 22 September 1966 on the establishment of a common organisation of the market in oils and fats (OJ 172, 30.9.1966, p. 3025/66), as last amended by Regulation (EC) No 1513/2001 (OJ L 201, 26.7.2001, p. 4).

Item 05 02 06 99 -- Other

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Modify the first two paragraphs as follows:

This appropriation is intended to cover any outstanding balances on

- the consumption aid for Community olive oil, in accordance with Article 11(1) of Regulation No 136/66/EEC,

- technical, financial or other public storage costs, pursuant to Articles 12 and 13 of Regulation No 136/66/EEC, and the financial depreciation of "recently constituted" stocks.

Article 05 02 07 -- Textile plants

Item 05 02 07 02 -- Aid for cotton

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Article 05 02 08 -- Fruit and vegetables

Item 05 02 08 02 -- Compensation for withdrawals and buying in

Figures

>TABLE POSITION>

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 02 08 05 -- Bananas

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 02 08 07 -- Production aid for fruit-based products

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 02 08 08 -- Production aid and intervention for dried grapes

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 02 08 09 -- Compensation to encourage processing of citrus fruits

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

New item

Item 05 02 08 10 -- Free distribution of fruit and vegetables

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

This appropriation is intended to cover expenditure on:

* financial compensation to producer organisations, pursuant to Article 23 of Regulation (EC) No 2200/96,

* the processing and distribution of products withdrawn or bought in, in accordance with Article 30 of that Regulation.

It is also intended to cover expenditure on defraying transport, sorting and packaging costs in connection with free distribution of fruit and vegetables, in accordance with the provisions of Article 30(6) of that Regulation.

Of this amount, expenditure relating to the accession of the ten new Member States is estimated at EUR 1 000 000 for the free distribution of fruit and vegetables.

Legal basis

Council Regulation (EC) No 2200/96 of 28 October 1996 on the common organisation of the market in fruit and vegetables (OJ L 297, 21.11.1996, p. 1), as last amended by Regulation (EC) No 545/2002 (OJ L 84, 28.3.2002, p. 1).

New item

Item 05 02 08 11 -- Other measures for fruit and vegetables

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

This appropriation is intended to cover:

* expenditure related to aid for producer groups granted preliminary recognition,

* expenditure resulting from grubbing-up,

* other expenditure, in particular financial contributions for the purpose of restructuring the fruit and vegetable sectors most affected by the abolition of the transitional measures laid down in the Act of Accession of Spain and Portugal, granted pursuant to Article 2 of Regulation (EEC) No 3816/92,

* the cost of specific measures for processed fruit and vegetables, in particular aid to asparagus producers, in accordance with Article 10 of Regulation (EC) No 2201/96,

* expenditure resulting from Community contributions to lump-sum aid to producer organisations and expenditure incurred by trade associations in applying programmes to improve the competitiveness of raspberries intended for processing.

Legal basis

Council Regulation (EEC) No 3816/92 of 28 December 1992 providing for, in the fruit and vegetables sector, the abolition of the compensation mechanism in trade between Spain and the other Member States and allied measures (OJ L 387, 31.12.1992, p. 10), as last amended by Regulation (EC) No 1363/95 (OJ L 132, 16.6.1995, p. 8).

Council Regulation (EC) No 2200/97 of 30 October 1997 on the improvement of the Community production of apples, pears, peaches and nectarines (OJ L 303, 6.11.1997, p. 3), as last amended by Regulation (EC) No 843/98 (OJ L 120, 23.4.1998, p. 10).

Council Regulation (EEC) No 1991/92 of 13 July 1992 establishing a special scheme for raspberries intended for processing (OJ L 199, 18.7.1992, p. 1), as last amended by Regulation (EC) No 1363/95 (OJ L 132, 16.6.1995, p. 8).

Council Regulation (EC) No 2200/96 of 28 October 1996 on the common organisation of the market in fruit and vegetables (OJ L 297, 21.11.1996, p. 1), as last amended by Regulation (EC) No 545/96 (OJ L 84, 28.03.2002, p. 1), and in particular Article 52(1) and (2) thereof.

Item 05 02 08 99 -- Other measures for fruit and vegetables

New heading:

Item 05 02 08 99 -- Other

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

This appropriation is intended to take account of:

* amounts recovered in cases of irregularity or fraud pursuant to Regulation (EEC) No 595/91,

* penalties and interest received, in particular those collected pursuant to Articles 51 and 52 of Regulation (EC) No 800/1999,

* securities forfeited and, in particular, those to be credited to the EAGGF under the proposal for a regulation,

* amounts retained pursuant to Article 7 of Regulation (EEC) No 595/91,

where the payment was originally entered in the accounts under Article 05 02 08.

However, any amounts relating to public storage operations will continue to be entered in the storage accounts.

Legal basis

Council Regulation (EEC) No 595/91 of 4 March 1991 concerning irregularities and the recovery of sums wrongly paid in connection with the financing of the common agricultural policy and the organisation of an information system in this field, and repealing Regulation (EEC) No 283/72 (OJ L 67, 14.3.1991, p. 11).

Commission Regulation (EC) No 800/1999 of 15 April 1999 laying down common detailed rules for the application of the system of export refunds on agricultural products (OJ L 102, 17.4.1999, p. 11), as last amended by Regulation (EC) No 444/2003 (OJ L 67, 12.3.2003, p. 3).

Article 05 02 09 -- Products of the wine-growing sector

Item 05 02 09 03 -- Distillation of wine

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 02 09 04 -- Storage measures for alcohol

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Article 05 02 10 -- Tobacco

Item 05 02 10 01 -- Premiums for tobacco

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Article 05 02 11 -- Other plant products/measures

Item 05 02 11 01 -- Dried fodder and grain legumes

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 02 11 04 -- POSEI

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 02 11 05 -- Aid regime for small producers

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Chapter 05 03 -- ANIMAL PRODUCTS

Figures

>TABLE POSITION>

Article 05 03 01 -- Milk and milk products

Item 05 03 01 01 -- Refunds for milk and milk products

Figures

>TABLE POSITION>

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Remarks

Change the second paragraph as follows:

Of the amount proposed, expenditure on enlargement to the ten new Member States is estimated at EUR 97 000 000.

Item 05 03 01 02 -- Intervention storage of skimmed-milk powder

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 03 01 03 -- Aid for disposal of skimmed milk

Figures

>TABLE POSITION>

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Remarks

Change the second paragraph as follows:

Of the proposed amount, expenditure on enlargement accounts for EUR 20 000 000.

Item 05 03 01 04 -- Intervention storage of butter and cream

Figures

>TABLE POSITION>

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 03 01 05 -- Other measures relating to butterfat

Figures

>TABLE POSITION>

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 03 01 07 -- Superlevy from milk producers

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 03 01 09 -- Refunds on non-Annex I products (milk and butter)

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 03 01 99 -- Other measures for milk and milk products

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Article 05 03 02 -- Beef and veal

Item 05 03 02 01 -- Refunds for beef and veal

Figures

>TABLE POSITION>

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Legal Basis

Add the following paragraph:

Council Regulation (EC) No 1254/1999 of 17 may 1999 on the common organisation of the market in beef and veal (OJ L 160, 26.6.1999, p. 21), as last amended by Regulation (EC) No 1512/2001 (OJ L 201, 26.7.2001, p. 1).

Item 05 03 02 02 -- Intervention storage of beef and veal

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 03 02 03 -- Suckler-cow premiums

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 03 02 05 -- Special premiums

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 03 02 09 -- Exceptional support measures

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 03 02 10 -- Compulsory slaughter programme

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 03 02 12 -- Other intervention

Figures

>TABLE POSITION>

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Remarks

Add the following paragraph:

In addition, it also intends to cover possible payments following the decision by the Court of Justice (C-239/01) on the co-financing rate on special support measures taken in the aftermath of the second BSE crisis (Regulation (EC) No 690/2001).

New item:

Item 05 03 02 13 -- Refunds for live bovines

Figures

>TABLE POSITION>

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Remarks

This appropriation is intended to cover export refunds in accordance with Article 33 of Regulation (EC) No 1254/1999.

Legal basis

Council Regulation (EC) No 1254/1999 of 17 may 1999 on the common organisation of the market in beef and veal (OJ L 160, 26.6.1999, p. 21), as last amended by Regulation (EC) No 1512/2001 (OJ L 201, 26.7.2001, p. 1).

Article 05 03 03 -- Sheepmeat and goatmeat

Item 05 03 03 02 -- Ewe and she-goat premiums

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Article 05 03 04 -- Pigmeat, eggs and poultry, bee-keeping and other animal products

Item 05 03 04 01 -- Refunds on pigmeat

Figures

>TABLE POSITION>

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Remarks

Delete the second paragraph:

Item 05 03 04 06 -- Refunds on non-Annex I products (eggs)

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

New item:

Item 05 03 04 08 -- Exceptional support measures for eggs

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

This appropriation is intended to cover expenditure on other measures decided on in accordance with Article 14 of Regulation (EEC) No 2771/75.

Legal basis

Council Regulation (EEC) No 2771/75 of 29 October 1975 on the common organisation of the market in eggs (OJ L 282, 1.11.1975, p. 49), as last amended by Regulation (EC) No 806/2003 (OJ L 122, 16.5.2003, p. 1).

Chapter 05 04 -- RURAL DEVELOPMENT

>TABLE POSITION>

Article 05 04 01 -- Rural development in the EAGGF Guarantee Section

Item 05 04 01 01 -- Investments in agricultural holdings

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 04 01 02 -- Setting-up of young farmers

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 04 01 03 -- Training

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 04 01 04 -- Early retirement -- Former system

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 04 01 05 -- Early retirement -- New system

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 04 01 06 -- Less-favoured areas

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 04 01 07 -- Agri-environment -- Former system

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 04 01 08 -- Agri-environment -- New system

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 04 01 09 -- Improving the processing and marketing of agricultural products

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 04 01 10 -- Forestry - Former system

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 04 01 11 -- Forestry -- New system

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 04 01 12 -- Promoting the adaptation and the development of rural areas

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Item 05 04 01 13 -- Other rural development measures in the EAGGF Guarantee Section

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Delete the following paragraph:

Legal basis

Delete the following paragraph:

New item:

Item 05 04 01 99 -- Other

Figures

>TABLE POSITION>

Remarks

This item is intended to take account of:

* amounts recovered in cases of irregularity or fraud pursuant to Regulation (EEC) No 595/91,

* penalties and interest collected,

* securities forfeited and, in particular, those to be credited to the EAGGF pursuant to the proposal for a regulation,

* amounts retained pursuant to Article 7 of Regulation (EEC) No 595/91,

where the payment was originally entered in the accounts under Article 05 04 01.

Legal basis

Council Regulation (EEC) No 595/91 of 4 March 1991 concerning irregularities and the recovery of sums wrongly paid in connection with the financing of the common agricultural policy and the organisation of an information system in this field, and repealing Regulation (EEC) No 283/72 (OJ L 67, 14.3.1991, p. 11).

Chapter 05 07 -- AUDIT OF AGRICULTURAL EXPENDITURE

Figures

>TABLE POSITION>

Article 05 07 01 -- Control of agricultural expenditure

Item 05 07 01 03 -- Clearance of previous years' accounts and reduction/suspension of advances under Activities 20 to 40

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Chapter 05 08 -- Policy strategy and coordination of policy area Agriculture

Figures

>TABLE POSITION>

New article:

Article 05 08 07 -- Completion of earlier measures in the field of information

Figures

>TABLE POSITION>

The likely schedule of payments vis-à-vis commitments is as follows:

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

This heading is intended to cover the clearance of commitments contracted previously on item B2-5122 for measures to enhance public awareness of the common agricultural policy.

Title 11 -- Fisheries

Figures

>TABLE POSITION>

Chapter 11 02 -- FISHERIES MARKETS

Figures

>TABLE POSITION>

Article 11 02 03 -- Fisheries programme for the outermost regions

Figures

>TABLE POSITION>

Remarks

For the financial year 2004, the breakdown is as follows:

>TABLE POSITION>

Legal basis

Proposal for a Council Regulation introducing a scheme to compensate for the additional costs incurred in the marketing of certain fishery products from the Azores, Madeira, the Canary Islands and the French departments of Guiana and Réunion as a result of those regions' remoteness. (COM(2003)516 final)

Chapter 11 03 -- INTERNATIONAL FISHERIES

Figures

>TABLE POSITION>

Article 11 03 01 -- International fisheries agreements

Figures

>TABLE POSITION>

The likely schedule of payments vis-à-vis commitments is as follows:

>TABLE POSITION>

Remarks

This appropriation is intended to cover the expenditure arising from the fisheries agreements which the Community has negotiated or intends to renew or negotiate with non-member countries.

Regulations and Decisions concerning the conclusion of agreements and/or protocols adopted with regard to fisheries between the European Community and the governments of the following countries:

>TABLE POSITION>

>TABLE POSITION>

Add the following paragraph:

The financial contribution resulting from the agreements generally includes a financial contribution whose use is left entirely to the discretion of the relevant governments and a contribution to measures designed to ensure sustainable management of the third country's fishery resources. The new amounts for 2004 (commitments: EUR168 422 561, payments: EUR172 922 561) can be broken down roughly as follows: financial contribution (commitments: EUR142 091 990, payments: EUR142 091 990) and targeted/other measures (commitments: EUR26 330 571, payments: EUR30 830 571).

Title 17 -- Health and Consumer Protection

Figures

>TABLE POSITION>

Chapter 17 01 -- ADMINISTRATIVE EXPENDITURE OF POLICY AREA HEALTH AND CONSUMER PROTECTION

Figures

>TABLE POSITION>

Article 17 01 04 -- Support expenditure for operations of POLICY AREA HEALTH AND CONSUMER PROTECTION

New item

Item 17 01 04 04 -- Pilot study: Risk financing model for livestock epidemics

Figures

>TABLE POSITION>

Remarks

This appropriation is intended to cover expenditure on technical and/or administrative assistance relating to the identification, preparation, management, monitoring, auditing and control of programmes and projects.

In particular, it covers expenditure on studies and the organisation of conferences to stimulate debate in the Community on the best way of compensating for the costs of zoonoses.

Legal basis

Pilot project, within the meaning of Council Regulation (EC, Euratom) N° 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities, Article 49(2) (OJ L 248, 16.9.2002, p. 1).

Title 31 -- Reserves

Figures

>TABLE POSITION>

Chapter 31 02 -- RESERVES FOR FINANCIAL INTERVENTIONS

Figures

>TABLE POSITION>

Article 31 02 41- Differentiated appropriations

Item 31 02 41 02 -- Differentiated appropriations (compulsory expenditure)

Figures

>TABLE POSITION>

Remarks

The breakdown is as follows (commitments, payments):

>TABLE POSITION>