COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(94) 398 final 
Brussels, 04.10.1994 
COMMUNICATION FROM THE COMMISSION TO THE COUNCIL 
AND THE EUROPEAN PARLIAMENT 
ADJUSTMENT OF THE FINANCIAL PERSPEC1IW WTCH A VIEW TO 
ENIARG^MET^OFTHEEJjRgPE4NlJMC^ 
PROPOSAL FOR THE ADJUSTMENT OF THE FINANQAL PERSPECTIVE 
annexed to the Interinstitutional Agreement of 29 October 1993 on budgetary 
discipline and improvement of the budgetary procedure 
IN CONNECTION WITH TOE ENLARGEMENT OF THE EUROPEAN UNION 
Presented by the Commission to Parliament and the Council in accordance with 
paragraph 24 of the mterinstitutional Agreement 
COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND 
PARLIAMENT 
ADJUSTMENT OF THE FINANCIAL PERSPECTIVE WIH A VIEW TO 
ENIARGaEMer^OFTHEEURœE4NlJMa\ 
In anticipation of the accession of four new Member States to the European Union next 
January, the Commission is sending the budgetary authority this cornmunication on the 
adjustment of the financial perspective in accordance with paragraph 24 of the 
Interinstitutional Agreement of 29 October 1993.1 This paragraph states that "should the 
Community be enlarged to include new Member States, the institutions, acting on a 
proposal from the Commission, will adjust the financial perspective to take account of the 
new requirements and resources of the enlarged (immunity". 
If possible, the institutions should take a decision on this adjustment of the financial 
perspective before the start of the 1995 financial year so that the budget for that year can 
be brought into line as soon as possible with the new financial framework laid down for 
the enlarged Community. 
0JC331. 7.12.1993. p.l. 
L 
METHOD PROPOSED FOR UPDATING THE FINANQAL PERSPECTIVE 
1. Updating macroecononic data; 1995 base 
The adjustment exercise concerns the financial perspective agreed by the 
Edinburgh European Council in December 1992 and annexed to the 
Interinstitutional Agreement. The financial perspective was last adjusted in March 
to deterrnine the financial framework to be used as a reference in the 1995 
budgetary procedure in the twelve-member Community.2 In accordance with 
Community practice, any technical adjustment ahead of the budgetary procedure 
is not subsequently called into question. The expenditure ceilings set for the 
current 1995 budgetary procedure cannot therefore be changed for the present 
Member States. 
However, accession of new Member States requires a new financial framework 
which will be binding on the enlarged Community for the next five years. 
Adjustment of the financial perspective therefore means that the total resources 
available over the whole of this period have to be accurately determined in order 
to ensure that the expenditure ceilings chosen are compatible with the Community 
resources ceiling. For this purpose, the underlying economic parameters must be 
updated from 1995 onwards and the latest GNP figures must be used for all the 
present or acceding Member States. The objective is twofold: to take account of 
the new resources generated by enlargement and of the changes brought about by 
economic developments in relation to the initially forecast level of resources in 
the twelve-member Community. 
J. The proposals contained in this communication are expressed in 1995 prices. This 
makes for easy comparison between the new financial framework and the draft 
budget now being adopted. The 1995 base is also being used in the negotiations 
on the budgetary consequences of enlargement; in particular, the appropriations 
allocated to the Structural Funds were fixed in 1995 prices in the Act of 
Accession. The Commission therefore proposes that the financial perspective for 
the enlarged Community for 1995-99 be produced in 1995 prices.3 
Commission communication to the Council and Parliament: SEC(94)340 final. 10.3.1994. 
As the basic regulations (or the Structural Funds and the Cohesion Fund were drawn up in 1992 
prices, the Commission will continue to use 1992 prices for the annual technical adjustment of the 
Structural Actions allocations for the twelve present Member States. 
This choice of a new base means that for 1996-99 the expenditure ceilings for the 
twelve-member Community have to be updated on the basis of the most reliable 
estimate of deflators - and of GNP in the case of the agricultural guidelines - in 
order to ensure compliance with the institutions' policy guidelines, which have so 
far been set at 1992 prices in the financial perspective annexed to the 
Interinstitutional Agreement. 
Annex 1 sets out the financial perspective for the Twelve for 1995-99, updated on the 
basis of the May 1994 economic forecasts but also allowing for an economic recovery 
that is now clearly more sustained than originally expected This updated version is 
compared with the financial perspective following last March's technical adjustment. 
The Commission has based all its proposals for adjustment on this new updated financial 
perspective. Annex 1 also contains the macroeconomic reference data. 
2. Implications of the updating of the financial respective for the Twelve for 
1996-99 
According to the latest economic forecasts, the rate of economic growth needs to be 
revised upwards and the rise in the GNP deflator, expressed in ecus, will slow down. 
This appreciable improvement in the economic situation will have a favourable 
influence on the financing of the financial perspective. If miscellaneous revenue 
is included, the balance between the ceiling on the Community's total resources 
and the ceiling on payment appropriations proposed in the financial perspective 
will be easily restored over the entire period 1996-99.4 The threat which has been 
hanging over the proper functioning of the Edinburgh financial perspective since 
last winter has thus disappeared, as the following table shows. 
This improvement in economic growth will not be felt as strongly in 1995 since the ceilings of 
the financial perspective will, by definition, remain unchanged. However, the balance between 
the total resources (1.21% of GNP) and the ceiling on payment appropriations should also be 
restored in 1995 when miscellaneous revenue is incorporated. 
ECU million (1995 prices) 
OWN RESOURCES -
PAYMENTS5 
MISCELLANEOUS REVENUE 
(estimate) 
TOTAL RESOURCES -
PAYMENTS 4 1996 
March 
94 
-625 
522 
-103 Sept 
94 
128 
522 
650 1997 
March 
94 
-926 
522 
-404 Sept. 
94 
-108 
522 
414 1998 
March 
94 
-641 
522 
-119 Sept. 
94 
236 
522 
758 1999 
March 
94 
-1015 
522 
-493 Sept 
94 
-80 
522 
442 
2. As a result of the fall in the deflator, the ceilings for headings 2 to 6, with the 
exception of the monetary reserve, which is expressed in current prices, are 
reduced by around 1% in terms of constant purchasing power over the period as 
a whole compared with those shown as a guide for 1996-99 in last March's 
technical adjustment. The ceiling for heading 1, on the other hand is hardly 
affected While the estimated agricultural guideline for 1996-99 is adversely 
affected by the fall in the deflator, it is boosted by the upward revision of the 
economic growth rate. 
Estimate based on an assumed growth rate of 2.5% from 1996. 
4 
EL 
THE NEW RESOURCES OF THE EUROPEAN UNION 
While the new resources generated by the improvement of the economic situation will 
restore the balance between the ceiling on payment appropriations and the total resources 
of the twelve-nation Community from 1995 onwards, the accession of the four new 
Member States will increase the Cornmunity's maximum financial capacity by 
ECU 6 209 million in 19956 with an own resources ceiling set at 1.21% of GNP in 
accordance with the Interinstitutional Agreement and the conclusions of the Edinburgh 
European Council. A medium-term growth rate of 2.5% has been assumed for the 
enlarged Community after 1995. The table below sets out the estimated increase in the 
amount of own resources available over this period 
1995 prices 
Own resources ceiling (% of GNP) 
GNP (ECU billion) 
Increase in own resources ceiling 
(ECU million) 1995 
1.21% 
513.2 
6209 1996 
1.22% 
526.0 
6417 1997 
1.24% 
539.1 
6685 1998 
1.26% 
552.6 
6963 1999 
•1.27% 
566.4 
7194 
The Commission proposes that these new financial resources should be allocated to the 
following objectives: 
(a) raising the ceilings over the entire period in order to cover the new requirements 
resulting from enlargement; 
(b) boosting various operations for which requirements have been updated 
(c) restoring and enlarging the margins for unforeseen expenditure which were 
originally planned at Edinburgh but which have now been taken up by the effects 
of the past recession. 
The GNP of the acceding countries for 1995 has been revised in relation to the May 1994 economic 
forecasts, in the same proportion as for the Twelve. 
m. 
fnrni7ATTniV OF NEW RESOURCES 
1. Assessment of new requirements resulting from enlargement 
The Commission has examined the new requirements arising for the Community budget 
as a result of the accession of new Member States. The amounts laid down in the Act 
of Accession for the Structural Funds and compensation simply have to be entered in the 
financial perspective. In most other cases, however, requirements have had to be 
evaluated 
This evaluation of additional appropriations has been conducted in terms of œmmitment 
appropriations. However, an orderly relationship must be maintained between 
commitment appropriations and payment appropriations. In the light of experience, the 
overall ceiling on payment appropriations has therefore been estimated on the basis of the 
ratios between commitments and payments used in drawing up the current financial 
perspective. 
All the budgetary requirements resulting from accession of the new Member States are 
set out heading by heading in the table in Annex 2. 
(a) Common agricultural policy 
The Commission is proposing the principle that the agricultural guideline be raised 
by 74% of the increase in Community GNP resulting from enlargement. This is the 
approach opted for by the Council in its statement last March7 and fits in with the 
mechanism of the guideline which limits the increase in agricultural expenditure by 
reference to the level of economic activity in the Community as a whole. This course is 
appropriate in the current situation since it raises the ceiling of heading I in line with the 
estimate of enlargement-induced additional agricultural expenditure for the four acceding 
States, as the following table shows. 
Council document 565B/94. p.2; Council minutes (5807/94). 
6 
Heading 1 (ECU million) 
1995 prices 
Increase in guideline8 
Estimated agricultural 
expenditure10 1995 
13109 
920 1996 
2258 
2212 1997 
2300 
2193 1998 
2343 
2193 1999 
2387 
2193 
It is proposed that the 1988 base hitherto used as the reference for the calculation of the 
guideline should be replaced by a new 1995 base for the enlarged Community. The 
procedure for deterrrrining the guideline is described in Annex 3. 
The Commission will therefore be proposing in due course that the changes required to 
adjust the base figure for the agricultural guideline and determine the specific guideline 
figure for 1995 be incorporated in the decision on budgetary discipline. 
(b) Structural operations 
1. The ceiling for heading 2 needs to be raised to accommodate the financing of the 
structural operations provided for in the Act of Accession for the four new Member 
States. These operations cover not only Objectives I to 5b but also the new Objective 6, 
which is specifically intended for regions with a population density of eight persons per 
krrf or less and for which the rules are laid down in Protocol No 6 to the Accession 
Treaty. 
2. A third subheading also needs to be inserted in heading 2 to cover the commitments 
entered into by the acceding countries under the EEA financial mechanism in accordance 
with the procedure set out in Annex 4. It is proposed that ECU 130 million a year at 
current 1995-98 prices be entered in this new subheading. As the exact amount of 
payments could fluctuate slightly over the next four years, it is proposed that the 
Commission should be allowed if necessary, to make the necessary corrections to the 
ceiling for this subheading during the annual technical adjustment. 
10 Based on assumed annual growth of 2.5% a year between 1996 and 1999. 
An increase of ECU 2 217 million, less ECU 907 million in respect of compensations (see 
Annex 3). 
Including accompanying measures from 1995 onwards. 
3. The table below sets out the increases required in the ceilings in heading 2. 
Heading 2 (ECU 
million) 
1995 prices 
OBJECTIVE 1 
OTHER 
OBJECTIVES 
OBJECTIVE 6 
STRUCTURAL 
FUNDS-TOTAL 
EEA MECHANISlVf1 
HEADING2-
TOTAL 1995 
32 
876 
196 
1104 
130 
1234 1996 
34 
900 
207 
1141 
130 
1271 1997 
37 
919 
220 
1176 
130 
1306 1998 
39 
939 
237 
1215 
130 
1345 1999 
42 
957 
249 
1248 
0 
1248 
(c) Internal policies 
1. The acceding countries are already participating in a number of 
Community programmes under the EEA agreement and paying a financial 
contribution which is added to the allocation in the general budget.12 
Following enlargement these amounts must be included under the ceilings 
of the financial perspective. 
2. After this, two different methods have been employed to assess the 
development of internal policies following enlargement. 
(a) Where the budgetary requirements for a given policy can be 
identified accurately in the fight of the specific features of this 
policy within the framework of enlargement the Commission has 
taken this evaluation as its basis. 
(b) Otherwise, since accession to the Community entails full 
participation in all the internal policies, the allocations must as a 
rule be increased to avoid any dilution in Community policies to 
the detriment of the present Member States. The Commission has 
accordingly assessed the new requirements on the basis of a 
number of proportionality factors such as GNP or population. 
At current prices. 
In 1995 the contributions from the four acceding countries account for 8.64% of the 
appropriations entered in the relevant headings of the general budget. 
8 
3. In future, the research expenditure entered in the general budget will of 
course have to include the 8.64% contribution currently made by the 
acceding countries under the EEA Agreement and extended to the entire 
framework programme.13 
4. A major effort will have to be made to develop the trans-European 
networks in the enlarged Community, particularly in the transport sector, 
in view of the volume of transit traffic in the Alps and the outlying 
position of the Scandinavian countries. Reference should be made in this 
connection to the undertakings given during negotiations on transit through 
the Alpine range and set out in Protocol No 9 on road rail and combined 
transport in Austria Apart from the need to establish trans-European 
networks on the territory of the acceding countries and take account of 
new cross-border links with non-member countries, enlargement will also 
affect the development of trans-European networks in the present 
Community. Integration of the new Member States will create new traffic 
flows in the present Community, underlining the need to speed up 
development of networks there as well. The Commission is therefore 
proposing an average increase of 25% in the total budget allocation for 
trans-European networks over the period 1995-99. In view of the time 
needed to select projects, the increase would be smaller at first and more 
substantial at the end of the period 
5. The allocations for a number of specific budget headings for other internal 
policies will have to be increased substantially to cope with specific 
situations such as when the national factor (representations and offices, 
Matthaeus programme, statistics) or the language factor (S series of the 
Official Journal, Systran programme) plays a special role after the number 
of countries and languages has been increased by one third Furthermore, 
the relative importance of fisheries in Norway justifies a substantial 
increase in the appropriations allocated to participation in inspection 
activities in this sector. Finally, at the start of the period a specific effort 
must be made in connection with veterinary checks at the Community's 
external frontiers, particularly in Austria 
The amount applied for enlargement has been calculated on the basis of an allocation of 
ECU 13 billion for 1995-98 and an estimate for 1999. 
3) 
For all the other internal policies, however, GNP and population size 
would appear to be the two most suitable proportionality factors to be 
taken into account Some budget headings could register smaller increases 
or remain stable (e.g. aid for reconstruction). Of course, subject to this 
overall constraint, the programmes which now receive contributions from 
the acceding countries under the EEA Agreement must not suffer any cut 
in the total funds made available. 
An increase of ECU 150 million is therefore considered necessary in 1995 
for the other internal policies; this is 10.5% more than the amount entered 
in the preliminary draft for 1995. This amount should rise over the period 
at the same rate as the current ceiling for heading 3. 
This evaluation would lead to an increase of 9.2% in the ceiling for 
heading 3 in 1995. As the specific outlay on trans-European networks will 
pick up gradually, the ceiling for heading 3 in the enlarged Community 
should rise faster than in the present Community. This rise would be an 
average of 11% over the period 1995-99. As there are no sub-ceilings in 
this heading, the reasons set out above are intended merely as a guide and 
do not prejudge the annual budgetary options or legislative decisions, even 
as regards the research framework programme. 
The table below sets out the increase needed in the ceiling for heading 3. 
As a specific growth path has been proposed for the various policies, the 
table also gives an indicative breakdown between the three main categories 
of expenditure financed under heading 3. 
Heading 3 (ECU million) 
1995 prices 
Increase in ceiling 
Research 
Trans-European networks 
Other policies 1995 
430 
244 
36 
150 1996 
483 
260 
68 
155 1997 
565 
277 
' 126 
162 1998 
629 
290 
170 
169 1999 
679 
290 
214 
175 
10 
Furthermore, in accordance with the Act of Accession, the Community 
budget will have to finance the rernaining payments to be made as a result 
of the acceding 001010168' participation in certain internal policies in 1994 
under the EEA Agreement, as explained in Annex 4. These amounts must 
be taken into account in the calculation of the overall ceiling for payment 
appropriations but do not of course count towards the ceiling for 
commitment appropriations in heading 3. 
(e) External action 
Enlargement of the Community must not lead to a relative decline in its external action. 
Expenditure on external action as a proportion of Community GNP must therefore remain 
constant after enlargement, which means that the ceiling for heading 4 must be increased 
in proportion to the GNP share of the new Member States. 
This method will also allow the Community and its Member States to maintain the same 
overall level of external aid since the new Member States will probably want to adjust 
their national aid by the amount of their contribution towards the financing of the 
Community's external aid It is also the only way to prevent enlargement from affecting 
the level and structure (national aid as opposed to aid passing through the Community 
budget) of the Twelve's external aid Any other solution would change the Twelve's total 
outlay or would oblige them to adjust their national aid to maintain the same level of aid 
overall. 
The ceiling for heading 4 should therefore be raised by 8.6% as a result of enlargement 
alone. Since the development of heading 4 would remain unchanged over the period 
1995-99, the following growth path for expenditure should be envisaged 
Heading 4 {ECU million) 
1995 prices 
Increase in ceiling 1995 
394 1996 
416 1997 
440 1998 
472 1999 
510 
11 
(0 Administrative expenditure 
The Commission has conducted a rigorous evaluation of the new costs which enlargement 
will entail for its administration The administrative departments of the other institutions, 
on the authority of the heads of adrninistration, have evaluated their own requirements. 
Should the institutions revise these estimates, account would have to be taken of the 
revised figures during the negotiations. 
The findings for each institution are analysed in Annex 5. In every case, the language 
factor plays a decisive role in this evaluation of new tasks. These estimates suggest as 
far as the Commission is concerned that there will be a gradual rise, with moderate 
amounts in the first two years, since recruitment will be spread over time. The increase 
in the 1995 Commission budget would thus be 5.1% (5.9% if pensions are not taken into 
account). For all the other institutions, the increase for 1995 is put at 10.3% 
Eventually, some ECU 410 million should be required for all the institutions together and 
the increase for heading 5 would thus average 8.7% over the period 1995-99. Half of the 
large increase for 1997 is accounted for by the fact that part of Parliament's building 
programme is to be financed under cover of enlargement, as explained in Annex 5. 
The following table shows how the ceiling for heading 5 will rise. 
Heading 5 (ECU 
million) 
Increase in ceiling 1995 
259 1996 
289 1997 
381 1998 
399 1999 
411 
(g) Reserves 
An increase in the two reserves for external action (the reserve for emergency aid and the 
guarantee reserve) would maintain the current breakdown between the various financial 
resources provided for the external action of the European Union. For the same reasons 
as used in connection with heading 4, the two reserves should be increased in line with 
the relative share of the GNP of the new Member States, bringing them to 
ECU 350 million at 1995 prices for the enlarged Community. 
The Commission is also proposing an increase in the monetary reserve of ECU 40 million 
a year at current prices. The ceiling for heading 6 would thus be increased by a total of 
ECU 100 million a year as a result of enlargement. 
12 
(h) Compensation 
The Act of Accession provides for the introduction of temporary and gradually declining 
budgetary compensation for the four new Member States. The amounts for each year and 
country are laid down in Articles 66, 81, 109 and 134 of the Act of Accession. In order 
to incorporate these amounts in the financial perspective, the Commission proposes a new 
heading - heading 7 - to be expressed at current prices. The following table breaks 
down this compensation. 
Heading 7 
(ECU million) 
Current prices 
AUSTRIA 
NORWAY 
SWEDEN 
FINLAND 
TOTAL 
COMPENSATION 
(FOUR COUNTRIES) 1995 
583 
201 
488 
476 
1748 19% 
106 
128 
432 
163 
829 1997 
71 
52 
76 
65 
264 1998 
35 
26 
31 
125 TOTAL 95-99 
795 
407 
1027 
737 
2966 
2. The Community's updated requirements 
This evaluation of requirements directly resulting from enlargement shows that financial 
resources will remain available under the resources ceiling for the enlarged Community. 
The Community's priority objective must be to use these new resources to restore the 
margin for unforeseen expenditure as soon as possible and subsequendy to widen it. 
The Commission has nevertheless pinpointed a number of specific requirements within 
headings 3 and 4 for which the financing should be carefully reviewed when the financial 
perspective is adjusted 
13 
1. Heading 3 
The ceiling for this heading will have to be raised because of the additional finance 
for the framework programme for research and possibly, the programme for the 
modernization of the Portuguese textile and clothing industry. 
• Framework programme for research 
Full financing of the new framework programme,14 including the additional 
ECU 700 million, the principle of which was agreed at the Brussels European 
Council in Etecember 1993 and for which a decision is expected in 19%, will entail 
an increase of around ECU 450 million in the heading 3 ceiling. In this way the 
relative balance of expenditure in heading 3 would be preserved 
# Programme for the modernization of the Portuguese textile and clothing 
industry15 
The Commission has proposed that this programme be financed under heading 2 as 
a Community initiative and it upholds its position. However, if the budgetary 
authority were to decide to finance the programme under heading 3, the ceiling for 
this heading would have to be raised by an equivalent amount in order not to crowd 
out the other policies under heading 3. The total allocation for the programme over 
the period 1994-99 comes to ECU 400 million.16 
The following table sets out the additional commitment appropriations required for 
heading 3. These increases in the ceiling do not prejudge the annual budget 
appropriations, but they must cover the total multiannual allocations planned for the two 
programmes mentioned above. 
Heading 3-1995 
prices (ECU million) 
Increase in ceiling 1995 
75 19% 
175 1997 
255 1998 
260 1999 
95 
14 The total amount for the new framework programme has been set at ECU 12.3 billion, to which a 
maximum additional amount of ECU 700 million mav be added. 
0JC 180. 1.7.1994 (94/C180/4). p.15. 
This ECU 400 million is expressed at 1994 prices, i.e. ECU 410 million at 1995 prices. 
14 
2. Heading 4 
In the years ahead the Community budget will have to satisfy three new 
requirements whose impact could be much bigger than initially envisaged when the 
financial perspective was prepared in December 1992. 
• Common foreign and security policy (CFSP) 
The way thinking in the institutions has been developing recendy on this subject 
would suggest that the Community budget contribution to the development of CFSP 
should play a decisive role. But the present financial perspective will allow only 
a small part of the CFSP to be financed This adjustment of the financial 
perspective provides an opportunity to set aside an appropriate volume of resources. 
• Assistance to countries of central and eastern Europe 
It would now appear that a further enlargement to allow in certain central and 
eastern European countries could be closer than originally thought. The financial 
perspective must therefore provide the possibility of stepping up assistance 
programmes in preparation for this eventuality. 
• Support for economic reforms in the Mediterranean countries 
In the years ahead the Mediterranean countries are going to have to make major 
efforts to reform their economies, something which is already essential if they are 
eventually to become full members of a wide free trade area. It is in the European 
Union's interest that a stable social and political climate should exist for this 
process, the prospect of which has already been opened up by the negotiation of the 
new agreements. The financial perspective must therefore also offer the possibility 
of boosting the critical mass to ensure that the Union can provide adequate backing 
for the economic reform process. 
The Commission therefore proposes the following increases in the ceiling for heading 4 
from 1997 to 1999. 
Heading 4 - 1995 prices 
(ECU million) 
Increase in ceiling 1997 
100 1998 
300 1999 
300 
15 
3. Restoring and widening the margin for unforeseen expenditure 
When the requirements linked to enlargement and the additional requirements described 
above have been taken into account, there is still a substantial safety margin below the 
own resources ceiling. The 0.01% margin for unforeseen expenditure contained in the 
initial financial perspective adopted at Edinburgh should be restored in 1995. It would 
widen gradually to over 0.02% of GNP by the end of the period 
The enlarged Community will thus be far better equipped to contend with any unexpected 
economic developments and to react to unforeseen events in future years. Recent 
experience has also shown that it can be useful to have a margin available beneath the 
own resources ceiling so that any negative balances from earlier years can be financed 
*********** 
The attached table gives full details of the new financial perspective for the enlarged 
Community which takes into account the new requirements and resources resulting from 
enlargement. A second table compares the proposed ceilings with those which would 
apply in the twelve-nation Community following the latest updating of the financial 
perspective. 
The proposal for the adjustment of the financial perspective, which the Commission is 
presenting in accordance with the Interinstitutional Agreement and is required in order 
to give effect to this communication, is attached 
The Commission will also be sending in due course a proposal relating to the Decision 
œncerning budgetary discipline, which will be needed to determine the new level of the 
guideline and the monetary reserve. 
16 
FINANCIAL PERSPECTIVE 
FOR THE ENLARGED COMMUNITY 
APPROPRIATIONS FOR COMMITMENTS 
ECU MILLION - 1995 PRICES 
[ | 1995 1996 1997 1998 1999| 
1. COMMON AGRICULTURAL POLICY 38304 39936 40641 41365 42106 
2. STRUCTURAL OPERATIONS 26498 27885 29557 31421 33198 
Structural Funds 24216 25359 26764 28575 30429 
Cohesion Fund 2152 2396 2663 2716 2769 
EEA Financial mechanism 130 130 130 1_30 
3. INTERNAL POLICIES ' 5157 5472 5836 6118 6206 
4. EXTERNAL ACTION . 4999 5272 5684 6289 6774 
5. ADMINISTRATION 4111 4219 4428 4499 4565 
6. RESERVES 1240 1240 1240 1240 1240 
Monetary reserve 540 540 540 540 540 
Guarantee 350 350 350 350 350 
Emergency aid __ 350 350 350 350 350 
7. COMPENSATION 1748 829 264 125 
8. TOTAL APPRS. FOR COMMITMENTS 82057 84853 87650 91057 94089 
9. TOTAL APPRS. FOR PAYMENTS 78316 80443 83630 86716 89488 
Appropriations for payments as % of GNP 1,20 1,21 1,22 1,24 1,25 
Margin as % of GNP 0,01 0,01 0,02 0,02 0,02 
Own resources ceiling as % of GNP ^21 1,22 1,24 1,26 1,27 
"? 
FINANCIAL PERSPECTIVE 
DIFFERENCE EUR/16 - EUR/12 
APPROPRIATIONS FOR COMMITMENTS 
ECU MILLION - 1995 PRICES 
| || 1995 1996 1997 1998 1999| 
1. COMMON AGRICULTURAL POLICY = 131Q 225Q 23QQ 2343 23Q~ 
2. STRUCTURAL OPERATIONS 1234 1271 1306 1345 1248 
Structural Funds 1104 1141 1176 1215 1248 
Cohesion Fund 
EEA Financial mechanism 130 130 130 130 
3. INTERNAL POLICES 505 658 820 889 774 
4. EXTERNAL ACTION 394 416 540 772 810 
5. ADMINISTRATION 259 289 381 399 411 
6. RESERVES 94 U_d 100 100 100 
Monetary reserve 40 40 40 40 40 
Guarantee 27 30 30 30 30 
Emergency aid 27 30 3(3 30 30 
7. COMPENSATION 1748 829 264 125 
8. TOTAL APPRS. FOR COMMITMENTS 5544 5821 5711 5974 5730 
9. TOTAL APPRS. FOR PAYMENTS 5392 5601 5418 5604 5364 
Appropriations for payments as % of GNP -0,01 -0,01 -0,02 -0,02 -0,03 
Margin as % of GNP OOJ OOJ 0,02 0,02 0,03 
lî 
ANNEX 1: Updating of the financial peispective of the twelve-nation Conrnunity 
1. Table A sets out the macroeconomic framework chosen for this updating of the 
financial perspective. This fi-amework is based on the latest figures for 1993-95 which 
the Commission used when producing its economic forecasts in May 1994. In the fight 
of the most recent developments, however, the growth prospects for the Community as 
a whole have been revised 
The nominal GNP forecast for 1995 (expressed in ecus) has risen by around 0.5% in 
relation to the figure used for last March's adjustment (economic forecasts of 
November 1993). In addition the relative movement of the deflator in ecus and real 
growth have changed quite appreciably over the period 1993-95. The cumulative growth 
rate has risen by almost 1.6% in relation to the November 1993 forecasts while the 
cumulative deflator has fallen by a little over 1% as a result of the fall of the deflators 
expressed in national currencies and exchange rate movements. 
2. On the basis of the method traditionally used for the technical adjustment the various 
ceilings in the financial perspective for the period 1996-99 have been calculated by 
applying the change in the GNP deflator (expressed in ecus) from 1992 to 1995, except 
in the case of the subheading for the monetary reserve in heading 6, which was fixed 
from the start at current prices. 
In the case of heading 1, the forecast level of the updated agricultural guideline for 
1996-99 was recalculated in the light of the latest economic data and estimates available 
for 1988-95l7 in accordance with the principles contained in the Council Decision 
concerning budgetary discipline and on the basis of an annual growth rate of 2.5% 
beyond 1995. 
3. In Table B the updated financial perspective used by the Commission as a basis for 
drawing up the proposals in this œmmunication is compared with the financial 
perspective resulting from last March's technical adjustment. 
The economic data for 1988-95 are set out in Table A of Annex 3 (Agricultural guideline) 
3 
TABLE A 
Community GNP - Figures and forecasts (EUR 12) 
Real growth rate 
% change per year 
-Adjustment for 1993 
-Adjustment for 1994 
-Adjustment for 1 995 
-Economic forecasts, may 1994 
-Updated figures 
GNP deflator in ecus 
% change per year 
-Adjustment for 1993 
-Adjustment for 1994 
-Adjustment for 1995 
-Updated figures 
GNP at current prices 
ECU billion 
-Adjustment for 1993 
-Adjustment for 1994 
-Adjustment for 1995 
-Updated figures 1992 
5410 
5398 
5405,4 
5403,2 1993 
1,4 
0,6 
-0,7 
-0,5 
-0,5 
4.3 
2,3 
1,5 
1,4 
5720 
5558 
5449,7 
5449,1 1994 
•1.8 
1,2 
1,6 
2,0 
3,5 
2,8 
2,4 
5855 
5668,5 
5690,4 1995 
2,1 
2.5 
2,7 
3,1 
2,6 
5963,8 
5995,2 
zo 
TABLE B: TWELVE-MEMBER COMMUNITY 
NEW UPDATED FINANCIAL PERSPECTIVE 
APPROPRIATIONS FOR COMMITMENTS 
ECU million 
1. COMMON AGRICULTURAL POLICY 
2. STRUCTURAL OPERATIONS 
Structural Funds 
Cohesion Fund 
3. INTERNAL POLICIES 
4. EXTERNAL ACTION 
5. ADMINISTRATION 
6. RESERVES 
Monetary reserve 
Guarantee 
Emergency aid 
8. TOTAL APPRS. FOR COMMITMENTS 
9. TOTAL APPRS. FOR PAYMENTS 
Appropriations for payments as % of GNP 
Margin as % of GNP 
Own resources ceiling as % of GNP 1995 PRICES 
1995 
36994 
25264 
23112 
2152 
4652 
4605 
3852 
1146 
500 
323 
323 
76513 
72924 
1,22 
-0,01 
1.21 1996 
37678 
26614 
24218 
2396 
4814 
4856 
3930 
1140 
500 
320 
320 
79032 
74842 
1,22 
0,00 
1,22 1997 
38341 
28251 
25588 
2663 
5016 
5144 
4047 
1140 
500 
320 
320 
81939 
78212 
1.24 
0,00 
1.24 1998 
39021 
30076 
27360 
2716 
5229 
5517 
4100 
1140 
500 
320 
320 
85083 
81112 
1,26 
0,00 
1,26 1999 
39719 
31950 
29181 
2769 
5432 
5964 
4154 
1140 
500 
320 
320 
88359 
84124 
1.27 
0,00 
1,27 
FINANCIAL PERSPECTIVE (MARCH 1994 - 1995 ADJUSTMENT) 
APPROPRIATIONS FOR COMMITMENTS 
ECU million 
1. COMMON AGRICULTURAL POLICY 
2. STRUCTURAL OPERATIONS 
Structural Funds 
Cohesion Fund 
3. INTERNAL POLICIES 
4. EXTERNAL ACTION 
5. ADMINISTRATION 
6. RESERVES 
Monetary reserve 
Guarantee 
Emergency aid 
8. TOTAL APPRS. FOR COMMITMENTS 
9. TOTAL APPRS. FOR PAYMENTS 
Appropriations for payments as % of GNP 
Margin as % of GNP 
Own resources ceiling as % of GNP 1995 PRICES 
1995 
36994 
25264 
23112 
2152 
4652 
4605 
3852 
1146 
500 
323 
323 
76513 
72924 
1,22 
•0,01 
1,21 1996 
37660 
26889 
24468 
2421 
4864 
4907 
3970 
1146 
500 
323 
323 
79436 
75202 
1,23 
-0.01 
1.22 1997 
38343 
28542 
25852 
2690 
5068 
5197 
4089 
1146 
500 
323 
323 
82385 
78621 
1.25 
-0,01 
1.24 1998 
39043 
30386 
27642 
'2744 
5283 
5574 
4143 
1146 
500 
323 
323 
85575 
81563 
1.27 
-0,01 
1,26 1999 
39760 
32280 
29482 
2798 
5488 
6026 
4196 
1146 
500 
323 
323 
88896 
84618 
1,29 
-0,02 
1.27 
SA 
ANNEX 2: Direct enlargement-induced requirements 
1. The first table below sets out the necessary increases in the ceilings of the financial 
perspective as a result of the accession of the four new Member States. However, this 
increase in the ceilings concerns the Community as a whole and does not prejudge the 
allocation of expenditure pursuant to budgetary decisions. The figure for heading 1 
corresponds to the increase in the guideline. 
2. A second table contains a number of basic data about the four acceding countries. 
II 
FINANCIAL PERSPECTIVE 
APPROPRIATIONS FOR COMMITMENTS 
ECU MILLION - 1995 PRICES 
I 4 ACCEDING COUNTRIES H 
| |[T995 1996 1997 1998 1999J 
1. COMMON AGRICULTURAL POLICY T3Ï0 2258 2300 2343 2387 
2. STRUCTURAL OPERATIONS 1234 1271 1306 1345 1248 
Structural Funds 1104 1141 1176 1215 1248 
Cohesion Fund 
EEA Financial mechanism 130 130 130 130 
3. INTERNAL POLICIES 430 483 565 629 679 
4. EXTERNAL ACTION 394 416 440 472 510 
5. ADMINISTRATION 259 289 381 399 411 
6. RESERVES 94 100 100 100 100 
Monetary reserve 40 40 40 40 40 
Guarantee 27 30 30 30 30 
Emergency aid 27 30 30 30 30 
|7. COMPENSATION 11 748 829 264 125 | 
8. TOTAL APPRS. FOR COMMITMENTS 1J469 5646 5356 5413 5335 
|9. TOTAL APPRS. FOR PAYMENTS ||5321 5443 5114 5141 5044J 
13 
ACCEDING COUNTRIES: SOME BASIC DATA 
GNPD 
GNP SCALE (**) 
POPULATION 
POPULATION SCALE 
AREA 
AREA SCALE 
GDP 1993 (USD) 
EEA SCALE (***) A 
169,89 
2,83% 
8006 
2,30% 
84 
3,71% 
181,2 
2.82% N 
93,81 
1,56% 
4334 
1,25% 
324 
14,34% 
103,2 
1.63% S 
171,74 
2,86% 
8808 
2,53% 
380 
16,81% 
185,3 
2,89% SF 
77,72 
1.30% 
5068 
1.46% 
337 
14,91% 
81,8 
1.30% E/4 
513,2 
8.56% 
26216 
7.54% 
1125 
49.77% 
552 
8.64% E/12 
5995.2 
100% 
347597 
100% 
2261 
100% 
6234 E/16 
6508,4 
373813 
3386 
(*) The GNP of the acceding countries for 1995 has been revised, in relation to the May 1994 
economic forecasts, in the same proportion as for the Twelve. 
(* *) 1995 GNP forecasts in ecus 
(***) Figure used for the preliminary draft 1995 budget (1993 GDP in USD) 
IH 
ANNEX 3: Procedure for calculating the agricuiturai guideline in the enlarged 
Community 
I. With a view to the forthcoming enlargement the Commission is proposing a new 
reference base for the agricultural guideline in a bid to enhance transparency. 
Like the method chosen to determine the new framework for the financial perspective at 
1995 prices, the new 1995 reference base for the agricultural guideline must incorporate 
the latest macroeconomic figures and forecasts available for the period 1988-95. To this 
end, there has been a notional recalculation of the guideline for 1995 for the 
twelve-member Community in accordance with the principles set out in the Decision 
concerning budgetary discipline. The result of this updating is shown in Table A. 
2. The method chosen for estabhshing the new base for the guideline of the enlarged 
sixteen-member Community is described in Table B. 
This new base would be obtained from the amount of corrected expenditure for 1995 at 
1995 prices — excluding specific items (sugar and isoglucose lew, ACP sugar refunds 
and food aid refunds) — as recalculated in Table A from the latest economic parameters 
available for the twelve-member Community. This ECU 35 000 million would be 
increased by 74% of the increase in GNP due to enlargement, i.e. by ECU 2 217 million, 
in accordance with the principle explained in this œrnmunication. 
The new basic amount — excluding specific items (sugar and isoglucose levy, ACP sugar 
refunds and food aid refunds) - would thus be ECU 37 217 million. This will be the 
figure used to determine the guideline for future years, with the calculation procedure 
unchanged but with account being taken of the development of the real GNP growth rate 
and deflator (in ecus) since 1995 and with the addition each year of the specific items 
estimated for that year. 
3. An ad hoc figure will have to be produced for 1995. The agricultural guideline set 
for the Twelve in the preliminary draft budget (ECU 36 994 million) will have to be 
increased by ECU 2 217 million as a result of enlargement, as mentioned above. 
0 
However, in accordance with the Council statement18 ECU 907 million must be deducted 
to compensate the new Member States for the fact that they are not eligible to direct 
per-hectare aid and beef premiums. As these amounts will not be paid out under the 
common agricultural policy but in the form of compensation, it is logical that they should 
be deducted from the guideline in 1995. The total amount of the guideline applicable in 
1995, the calculation of which is also described in Table B. would thus be 
ECU 38 304 million. 
Council document 5658/94. p.2: Council minutes (5807/94). 
TABLE A : UPDATING OF THE AGRICULTURAL GUIDELINE IN 1995 
on the basis of updated GNP 
ECU million 
UPDATED 1995 BASE PDB 1995 (for info.) 
BASIC EXPENDITURE (1988 budget) 
Less: 
- sugar and isogiucose levy 
- food aid refunds 
- ACP sugar refunds 
- Subtotal 
CORRECTED EXPENDITURE (1988 prices) 
Plus estimated needs for: 
- sugar and isoglucose levies 
- food aid refunds 
- ACP sugar refunds 
- Subtotal 
AGRICULTURAL GUIDELINE 27.500 
1.540 
386 
660 
2.586 
24.914 
REAL GNP GROWTH RATE 
1989 I 3,60% I 
1990 3,00% 
1991 1,50% 
1992 1,00% 
1993 -0,50% 
1994 2,00% 
1995 2,70% 
Cumulative growth rate 14,02% 
74 % of cumulative growth rate 10,37% 
CORRECTED EXPENDITURE (1988 prices) 27.499 
GNP DEFLATOR 
1989 f 5,10% I 
1990 4,50% 
1991 5,10% 
1992 3,50% 
1993 1,40% 
1994 2,40% 
1995 2,60% 
Cumulative growth rate 27,28% 
CORRECTED EXPENDITURE (1995 prices) 35.000 
1.253 
142 
635 
2.030 
37.030 27.500 
1.540 
386 
660 
2.586 
24.914 
3,70% I 
3,10% 
1,50% 
1,10% 
-0,70% 
1,20% 
2,10% 
12,57% 
9,30% \ 
27.231 
5,10% I 
4,40% 
5,10% 
3,50% , 
1,50% 
2,80% 
3,10% 
28,40% 
34.964 
1.253 
142 
635 
2.030 
36.994 
rf 
TABLE B: DETERMINATION OF THE GUIDELINE 
NEW REFERENCE BASE AND AD HOC AMOUNT FOR 1995 
NEW 1995 
ECU MILLION - 1995 PRICES BASE GUIDELINE 
TWELVE-MEMBER COMMUNITY 
BASIC EXPENDITURE (1988) 27500 
LESS specific items 2586 
CORRECTED EXPENDITURE (1988) 2491 4 
CUMULATIVE GNP GROWTH RATE 14,0 12.6 
of which 74 % 10.4 9,3 
CORRECTED EXPENDITURE 1995 (1988 prices) 27499 27231 
CUMULATIVE DEFLATOR 27.3 28,4 
A: CORRECTED EXPENDITURE 1995 (199S price.) 35000 34964 
PLUS specific items for 1995 2030 
B: AGRICULTURAL GUIDELINE IN FORCE - 36994 
IMPACT OF ENLARGEMENT 
BASE EUR 12 35000 
RELATIVE SHARE OF GNP OF THE FOUR ACCEDING COUNTRIES 8,56% 
of which 74 % 6,334% ." 
C: ADDITIONAL AMOUNT DUE TO ENLARGEMENT 221 7 
D: COMPENSATION -907 
E: AGRICULTURAL GUIDELINE EUR 16 FOR 1995 (B) + (C) + (0) 38304 
F: NEW 1995 BASE FOR FUTURE CALCULATION OF GUIDELINE (1) (A) + (C) 37217 
(1) The f.gure for the specific items for the year m question must be added. In the finançai perspective these specfic items have been 
left, as a gu.de. at the.r 1995 level. The actual amount will be determined each year in accordance wrth the pnnciples established 
Dy the Decision concerning budgetary discipline. 
« 
ANNEX 4: Financing the commitments resulting from thp FFA Agreement 
During the accession negotiations the European Union agreed to finance two types of 
financial commitment entered into by the acceding countries under the EEA Agreement 
in addition to the compensation entered under the new heading 7. They were the 
contribution of the new Member States towards the cost of the EEA financial 
mechanism19 set up by Articles 116 and 117 of the EEA Agreement and Protocol 38 to 
that Agreement, and the payments20 resulting from commitments entered into in 1994 
under Article 82 of the EEA Agreement. In both cases, the amounts mentioned in this 
communication are intended merely as a guide, and the European Union will only have 
to cover obligations actually arising from the EEA Agreement. 
EEA financial mechanism 
This mechanism is intended to contribute to the development of the least-favoured regions 
of the Cornmunity; between 1994 and 1998 it will pay out annual subsidies of 
ECU 100 million, together with 2% interest rebates on loans totalling ECU 1.5 bilhon 
spread equally over this five-year period The financial mechanism will be administered 
by the EIB to avoid changing the current system, which will have to be retained since not 
all the EEA countries will be joining the European Union. However, it is the budget of 
the Union which will cover the cornmitments which should have been borne by the new 
Member States between 1995 and 1998. 
The amounts proposed for this new subheading are those reached in the compromise 
which concluded the negotiations ~ ECU 130 million a year at current prices from 1995 
to 1998. However, the amount actually paid to the EIB will correspond exactly to the 
œmmitments arising from the EEA Agreement. 
Payments arising as a result of certain internal policies in 1994 
In 1994 the acceding countries will have taken part in a number of internal policies under 
the EEA Agreement. The Act of Accession states that the Union budget will assume the 
cost of the contribution by the new Member States to the financing of payments still to 
be made against commitment appropriations outstanding from 1994. These amounts have 
to be taken into account when adjusting the financial perspective; hitherto they have not 
been covered by the financial perspective since they were financed by the acceding 
countries. The overall ceiling for appropriations for payments will therefore have to be 
raised to include these amounts, which were estimated during the accession negotiations 
at around ECU 110 million for the period as a whole and can be broken down into 
roughly ECU 70 million in 1995, ECU 30 million in 19% and ECU 10 million in 1998. 
'9 Articles 68. 83. 111 and 136 of the Act of Accession. 
20 Articles 67. 82. 110 and 135 of the Act of Accession. 
23 
ANNEX 5: Administrative expenditure of the institutions 
Each institution has evaluated the impact which enlargement will have on its budget21 
In the case of the Commission, the amounts contained in this annex reflect the 
deliberately strict guidelines set by the Commission itself for adapting its administration 
as a result of enlargement. 
For the other institutions, the evaluations come from their adnrinistrative departments, on 
the authority of the head of adnrinistration, and are not binding on those institutions. 
The requirements identified by the various institutions are set out in the attached table. 
In every case, the language factor appears to be a particularly important constraint, since 
the introduction of three new languages will involve net supplementary costs. 
1. Commission 
The Commission's administrative organization will be doubly affected by enlargement. 
First, the Commission will assume specific new tasks. Secondly, nationals from the four 
new Member States will have to be recruited to ensure balance. 
(a) New tasks 
Language service 
For each of the new languages, the language service must recruit staff in numbers 
equivalent to what the other languages have at present; this will require the 
creation of 481 new posts. For the same reasons, recruitment will have to take 
place fairly rapidly within a space of three years, with 50% of the staff being 
recruited in the first year. 
The following technical assumptions were used by all the institutions: 
BFR/ECU exchange rate: 40.1069 (rate adopted for the preliminary draft 1995 budget) 
purchasing power of salaries constant over the period 1995-99. 
30 
Other departments 
The Commission estimates that some $Sc new posts will be needed to cope with 
new tasks. It has adopted a deliberately restrictive approach, cutting down the 
requirements put forward by its departments; all the new tasks resulting from 
enlargement will therefore have to be carried out under the normal budgetary 
procedures and by means of a policy of redeployment. Similarly, recruitment could 
be staggered evenly over five years. 
(b) Recruitment of nationals from the new Member States 
This increase in staff numbers will not in itself ensure a balanced representation of 
nationals from the new Member States. This objective will have to be achieved 
gradually over an estimated five years as part of the turnover of posts (natural 
wastage) and in accordance with the annual budgetary procedures. Contrary to 
what was done at the time of previous enlargements, the Commission will not use 
the voluntary terminations-service arrangements, thereby avoiding any additional 
cost to the budget. 
Expenditure on buildings and adrrrinistrative expenditure was evaluated in detail on the 
basis of this assumption concerning staff and, where appropriate, on the basis of other 
relevant parameters.22 
The amounts given by the Commission in the summary table of adrninistrative 
expenditure also include the budget estimates for the Publications Office, which are added 
to the Commission's requirements set out above. Enlargement will considerably increase 
the Office's workload, mainly for linguistic reasons. The cost will be around 
ECU 11 million a year, resulting from recruitment in 1995 of seventy linguists and fifty 
administrative staff. 
The overall outcome of this evaluation of requirements is a limited 5.1% increase in the 
Commission's budget for 1995 (5.9% when pensions are excluded), compared with the 
appropriations entered in the preliminary draft budget for 1995. The cost of enlargement 
for the Commission thus comes to 3.4% of the overall ceiling for heading 5 in 1995 and 
4.8% of this ceiling in 1999. 
In particular, a significant increase is expected in Chapter A-25 (Expenditure on formal and 
other meetings) as a direct result of the increase in the number of Member States by one third 
and the higher transport costs for the outlying Member States. 
M 
2. Other institutions 
The requirements identified by the other institutions are summarized below. In 1995 an 
increase of around 10.3% is to be expected for the other institutions compared with their 
statements of estimates. 
As a rule, in addition to the language factor, the accession of four new Member States 
and the corresponding increases in the number of members of the institution will have an 
appreciable effect on the budgets of the institutions with the smallest staff. 
Parliament 
Staff: Parhament plans to recruit 390 new officials over a period of three years; 310 of 
these posts will be for the language service alone. Eighty voluntary retirements are 
planned 
Buildings: Parliament has not conducted a specific evaluation of the additional 
expenditure on buildings arising from enlargement since a detailed breakdown of its 
building programme is not considered possible. However, although this programme was 
adopted in a twelve-nation Community, notably in response to the decision on the seats 
of the institutions, it was also devised to accommodate a possible enlargement, the 
various buildings, and in particular the chambers, being adapted to the new requirements 
of an enlarged Community. Part of the cost of this programme, which would hardly have 
been feasible from the budgetary angle under the current ceiling for heading 5, has 
therefore been included with the requirements arising from enlargement: this involves a 
fixed amount of around ECU 50 million a year between 1997 and 1999" i 23 
Council 
Staff: Recruitment of 330 new staff over two years, half of them in 1995. 
Buildings: One additional building to be rented 
23 This amount cannot be directly divided between each acceding country. It will have to be 
financed whatever happens and must therefore be taken into account for an increase in the 
ceiling for heading 5. 
3% 
Economie and Social Committee24 
Staff: Recruitment of 116 staff in 1995 (108 new posts and eight posts resulting from 
voluntary retirement), including 63 officials for the translation service. 
Buildings: Extra space to be rented in the existing building. 
Committee of the Regions24 
The Commission has not received any requests from the Committee of the Regions. As 
a precaution, an amount equivalent to half the requests made by the Economic and Social 
Committee for its own needs has been pencilled in. 
Court of Justice 
Staff: In addition to the ten new Members (including those for the Court of First 
Instance), it is planned to create 269 additional posts. Of this total, 137 posts will be 
needed in the language services and 58 in the Chambers. Whereas these posts are to be 
filled in 1995, the creation of 74 posts for the departments will be spread over a number 
of years. 
Buildings: Corresponding increase in surface area 
Court of Auditois 
Staff: In addition to the four new Members, the plans are to recruit 110 staff in 1995, 
ninety of them in newly created posts and twenty in posts made vacant through voluntary 
retirement. As with the Court of Justice, much of the increase is accounted for by the 
language services and the Members' Offices. 
Buildings: Corresponding increase in surface area 
The ESC estimates did not take account of the creation of the Common Organizational Structure. 
The amounts estimated for the two Committees in respect of enlargement will therefore have to be 
devoted in part to the Common Organizational Structure. 
J3 
ADMINISTRATIVE EXPENDITURE 
RESULTING FROM ENLARGEMENT 
ECU million 
ADMINISTRATIVE EXPENDITURE 
COMMISSION + OOPEC 
Staff 
Administration 
Buildings 
Other expenditure on premises 
OTHER INSTITUTIONS -TOTAL 
PARLIAMENT ( 1 } 
Staff 
Administration 
Buildings 
Other expenditure on premises 
COUNCIL 
Staff 
Administration 
Buildings 
Other expenditure on premises 
ECONOMIC AND SOCIAL CTTEE 
Staff 
Administration 
Buildings 
Other expenditure on premises 
COMMITTEE OF THE REGIONS {2} 
COURT OF JUSTICE 
Staff 
Administration 
Buildings 
Other expenditure on premises 
COURT OF AUDITORS 
Staff 
Administration 
Buildings 
Other expenditure on premises 1995 PRICES 
1995 
253 
130 
60,5 
61,3 
6,3 
2,2 
m 
45 
30,3 
12,3 
0,7 
1,3 
26 
6,7 
16,9 
1,9 
0,7 
17 
11,3 
1,6 
1.1 
3,3 
9 
21 
17,6 
2.3 
0,7 
0,2 
1U 
8,0 
2,1 
1,3 
0,1 1996 
289 
145 
73,9 
59,2 
8,8 
3,2 
143 
56 
42,3 
12,5 
0,7 
0,2 
28 
18,6 
7,3 
1,9 
0,7 
13 
9,0 
0,7 
1,8 
1,6 
7 
24 
21,2 
2,1 
0,7 
0,2 
15 
11,6 
2.3 
1,3 
0,2 1997 
381 
172 
93,9 
62,2 
11,4 
4,3 
208 
114 
50,2 
12,9 
50,7 
0,2 
34 
24,6 
7,2 
1,9 
0,7 
[ 13 
9,1 
0,5 
1,8 
1,4 
6 
26 
22,4 
2,8 
0,7 
0,2 
15 
11,6 
2,3 
1,3 
0,2 1998 
399 
187 
106,4 
63,6 
12,7 
4,7 
212 
115 
51,3 
13,1 
50,7 
0,2 
35 
24,9 
7,3 
2,0 
0,7 
13 
9,0 
0,8 
1,8 
1,4 
7 
26 
22,7 
2,8 
0,7 
0,2 
15 
11,6 
2,3 
1.3 
0,2 1999 
411 
198 
112,4 
65,7 
14,7 
5,1 
213 
116 
52,1 
13,3 
50,8 
0,2 
35 
25,3 
7,4 
2,0 
0,7 
13 
9,0 
0,9 
1,8 
1,4 
7 
26 
22,8 
2,8 
0,7 
0,2 
15 
11,6 
2,3 
1,3 
0,2 
(1) Including an estimated ECU 50 million a year from 1997 
for part of Parliament's building programme. 
(2) As a precaution, an amount equivalent to half the requests made by 
the Economic and Social Committee for its own needs has been 
pencilled in. 
•3/ 
PROPOSAL FOR THE ADJUSTMENT OF THE FINANQAL PERSPECTIVE 
annexed to the mterinstitutional Agreement of 29 October 1993 on budgetary 
discipline and improvement of the budgetary procedure 
IN CONNECTION WITH THE ENLARGEMENT OF THE EUROPEAN UNION 
Presented by the Commission to Parliament and the Council in accordance with 
paragraph 24 of the Interinstitutional Agreement 
3f 
Decision on the adjustment of the financial peispective annexed to the 
Interinstitutional Agreement of 29 October 1993 on budgetary discipline and 
improvement of the budgetary procedure 
The European Parliament, the Council of the European Union and the European 
Commission, 
Having regard to paragraph 24 of the mterinstitutional Agreement on budgetary discipline 
and improvement of the budgetary procedure,1 
Having regard to the Act relating to the conditions of accession for Norway, Austria, 
Finland and Sweden,2 
Having regard to the proposal from the Commission, 
Whereas the financial perspective for 1993-99 annexed to the Interinstitutional Agreement 
must be adjusted in respect of the period 1995-99 to take account of the new 
requirements and resources of the enlarged (immunity, 
HAVE DEQDED AS FOLLOWS 
Sole article 
1. For each of the years from 1995 to 1999, the amounts contained in the financial 
perspective in Annex I to the Agreement are replaced by the amounts contained in the 
table attached to this decision. 
2. These new amounts are expressed in 1995 prices, with the exception of the EEA 
financial mechanism (subheading 2.3), the monetary reserve (subheading 6.1) and 
compensation (heading 7), which are in current prices. 
1 OJC 331. 7.12.1993. p.l. 
2 OJ C 241. 29.8.1994. p.21. 
3* 
3. In the case of the allocations for structural actions under heading 2 as determined in 
the initial financial perspective for the twelve Member States concerned the Commission 
shall conduct its annual technical adjustment of these amounts on the basis of 1992 
prices. 
4. The ceiling for subheading 1.3 (EEA financial mechanism) may be altered, if 
necessary, by the technical adjustment procedure provided for in paragraph 9 of the 
Interinstitutional Agreement in line with the actual payments to be made in this respect 
during each financial year concerned 
Done at Brussels, 
For Parliament, For the Council, 
For the Commission, 
Jf 
FINANCIAL PERSPECTIVE 
FOR THE ENLARGED COMMUNITY 
APPROPRIATIONS FOR COMMITMENTS 
ECU MILLION - 1995 PRICES 
1. COMMON AGRICULTURAL POLICY 1995 
38304 1996 
39936 1997 1998 
40641 41365 1999J 
42106 
2. STRUCTURAL OPERATIONS 
Structural Funds 
Cohesion Fund 
EEA Financial mechanism 26498 
24216 
2152 
130 27885 
25359 
2396 
130 29557 
26764 
2663 
130 31421 
28575 
2716 
130 33198 
30429 
2769 
3. INTERNAL POLICIES 5157 5472 5836 6118 6206 
4. EXTERNAL ACTION 4999 5272 5684 6289 6774 
5. ADMINISTRATION 4111 4219 4428 4499 4565 
6. RESERVES 
Monetary reserve 
Guarantee 
Emergency aid 1240 
540 
350 
350 1240 
540 
350 
350 1240 
540 
350 
350 1240 
540 
350 
350 1240 
540 
350 
350 
7. COMPENSATION 1748 829 264 125 
8. TOTAL APPRS. FOR COMMITMENTS 82057 84853 87650 91057 94089 
9. TOTAL APPRS. FOR PAYMENTS 78316 80443 83630 86716 89488 
Appropriations for payments as % of GNP 1,20 1,21 1,22 1,24 1,25 
Margin as % of GNP 0,01 0,01 0,02 0,02 0,02 
Own resources ceiling as % of GNP 1,21 1,22 1,24 1,26 1,27 
Jt 
ISSN 0254-1475 
COM (94) 398 final 
DOCUMENTS 
EN 01 
Catalogue number : CB-CO-94-428-EN-C 
ISBN 92-77-80783-0 
Office for Official Publications of the European Communities 
L-2985 Luxembourg