COMMISSION OF THE EUROPEAN COMMUNITIES
Brussels, 3.5.2000
COM(2000) 262 final
2000/0109 (COD)
COMMUNICATION FROM THE COMMISSION
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT
concerning the revision ofthe financialperspective (2001-06)
Financing ofthe programme ofassistance forthe western Balkans
Reclassification ofaid to Cyprus and Malta
Proposalfora
DECISION OF THE EUROPEAN PARLIAMENT AND THE COUNCIL
concerning the revision of the financialperspective
(InterinstitutionalAgreement of6 May 1999 on budgetary discipline and improvement
ofthe budgetary procedure)
(presented bythe Commission)
2COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE
EUROPEAN PARLIAMENT
concerning the revision ofthe financialperspective (2001-06)
Financing ofthe programme ofassistance forthe western Balkans
Reclassification ofaid to Cyprus and Malta
1. N EW FACTORS TO BE TAKEN INTO ACCOUNT SINCE THE CONCLUSION OF THE
INTERINSTITUTIONAL AGREEMENT (IIA)OF6MAY1999
1.1. Developments in the Balkans
The financial perspective agreed by the institutions after the Berlin European Council
in March 1999 does not allow for the possible impact on the Community budget ofthe events occurring at the time in the Balkans. However, a declaration of theEuropean Parliament and the Council annexed to the IIA reads, "In view of thedevelopments in the Balkan situation, particularly in Kosovo, the two arms of thebudgetary authority request the Commission, when needs have been ascertained andestimated, to submit the necessary budget proposals, including, if appropriate, aproposalfor revisionofthe financialperspective".
The budgetaryauthoritydecided on16 December 1999 to draw
/uni20AC200 million from the
flexibility instrument to provide the additional funding required in 2000 for aid for the
reconstruction of Kosovo. At that time the Commission confirmed that it wouldpropose at a later date a programme of assistance for the period 2000-06 for thewestern Balkans, including Kosovo, the amount ofwhich would require it to present aproposal for the revision of the financial perspective, accompanied by a programmingofexpenditure for heading 4. Parliament and the Council, for their part, agreed “that aprogramme of assistance for the western Balkans had to be put in place”. They added“that if the amount finally agreed involved a financial effort that was significantlymore than already programmed, this would mean exceeding the current ce ilings for
heading 4 ofthe financialperspective”.
This communication contains the Commission's proposal for the revision of the
financial perspective, in conjunction with the programme of assistance for thereconstruction, development and stabilisation of the western Balkans and a newprogramming for heading 4 set out inseparate documents.
1.2. The development ofthe enlargement process
The financial perspective agreed in the IIA contains a heading 7 covering
pre-accessionaid for the tenapplicant countries fromcentraland easternEurope.
In line with the conclusions of the December 1999 Helsinki European Council for the
development of the enlargement process, the Council recently adopted, on a proposalby the Commission a new regulation concerning aid for Cyprus and Malta, which
3currently comes under cooperation with non-member Mediterranean countries
covered byheading 4 ofthe financialperspective, to make it pre-accessionaid instead.
For the sake of consistency in the presentation of the financial framework it would
therefore be logical for the allocations earmarked for this instrument of pre-accessionaid to the two applicant countries concerned to be included under the correspondingheading of the financial perspective. Parliament asked for this reclassification duringthe debate onthe 2000 budget.
2. F
INANCING OF THE PROGRAMME OF ASSISTANCE FOR THE RECONSTRUCTION ,
DEVELOPMENT AND STABILISATION OF THE WESTERN BALKANS (CARDS
PROGRAMME )
2.1. Requirementsto be covered underheading 4 ofthe financialperspective
The proposal for a regulation implementing this programme is contained in
COM(2000) … finalpresented bythe Commission.
2.1.1. Features of the programme proposed
The programme proposed concerns Albania, Bosnia-Herzegovina, Croatia, the
Federal Republic of Yugoslavia (Serbia, Montenegro and Kosovo) and the FormerYugoslav Republic of Macedonia. The aim is to establish a comprehensive legalframework for cooperationbetweenthe EuropeanUnionand the western Balkans andto implement an integrated programme of reconstruction and economic development.Each country's participation will be conditional on compliance with certain criteriaconcerning democracy, the rule oflaw and human rights.
The assistance offered is mainly designed to contribute to the development of the
stabilisation and association process. The regional dimension r eceives specialattention
inorder to support the Union's role withinthe Stab ility Pact.
The bodies set up by the international community for the civilian administration of
certain regions, namely the High Representative in Bosnia and the United NationsInterim Mission in Kosovo, will be duly consulted for the provision of assistance tothese regions.
The more specific objectives ofthe programme are:– the reconstruction and stabilisation of the region;– the creationofaninstitutionaland legislative framework to support democracy, the
rule oflaw, human rights and minorities;
– development and economic reforms directed at the market economy;– development of closer relations between recipient countries and between these
countries and the EuropeanUnion.
42.1.2. Additional resources to be provided
A reference amount of up to /uni20AC5.5 billion is earmarked for the period 2000-06 for
expenditure under this programme and for macro-financial aid to the countries in theregion. The indicative breakdown of this amount is as follows:
2000 2001 2002 2003 2004 2005 2006 Total
Albania, Croatia,
Bosnia-Herzegovina(including macro-fin.assistance), Fyrom,Montenegro203 255 230 210 210 200 200 1508
Serbia -4 0
(+200)320 420 420 430 430 2060
(+200)
Kosovo 310 350 240 110 30 30 30 1100
Regional cooperation 28 80 90 90 90 90 90 558
Macro-fin. assistance pm* 75 pm* pm* pm* pm* pm* 75
Total 541 800
(+200)880 830 750 750 750 5300
(+200)
*Actual expenditure under this head will be charged to the allocations appearing
elsewhere inthe table for the recipient countries.
The /uni20AC541 for 2000 is already budgeted for; this includes, for Kosovo, /uni20AC30 million
carried over from 1999 to 2000 and /uni20AC40 million to be redeployed in the course of
2000. This amount incorporates the drawing on the flexib ility instrument decided by
the budgetaryauthority.
For 2001, /uni20AC40 million is planned at all events for Serbia to assist the democratic
forces and the towns administered by the opposition. If the political conditionsimposed on the granting of other aid were to be satisfied this year already, anadditionalamount ofupto
/uni20AC200 million would have to be taken into account.
Whenthe preliminarydraft budget for 2000 was established, /uni20AC1.85 billion was already
programmed over the period 2000-06 for assistance for the western Balkans. With theamounts now entered in the 2000 budget, the additional financing requirement to becovered from2001 to 2006 for the new CARDS programme is
/uni20AC3.43 billion.
2.2. The arrangementsproposed forfinancing the supplementary expenditure
Paragraph 19 of the IIA provides that the financial perspective may be revised in the
event of unforeseen circumstances. However, in accordance with paragraph 21, theinstitutions must examine the scope for reallocating expenditure between theprogrammes covered by the heading concerned by the revision, the objective beingthat a significant amount, in absolute terms and as a percentage of the newexpenditure planned, should be found within the existing ceiling for the heading.
5The institutions must also examine the scope for offsetting raising the ceiling for one
heading by lowering the ceiling for another.
2.2.1. Possibilities of redeployment of expenditure under heading 4
The Commissionhas reviewed the programming underlying the Agenda 2000 financial
framework, with the dual concern of identifying any margins that could be used tofinance new measures for the Balkans and of preserving the priorities set for theconduct ofthe Union's externalpolicies.
The results of this review are set out in COM(2000) …final which has also been
transmitted by the Commission. It is seen that a total of
/uni20AC1.43 billion could be
reassigned over the period 2001-06 for the planned financing of the CARDSprogramme.
2.2.2. Raising the heading 4 ceilings in connection with the CARDS programme
On the basis of this new programming, raising the heading 4 ceiling by
/uni20AC300 million
eachyear from2001 to 2006 should make it possible to cover the additionalneeds forthe new CARDS programme and leave the necessarysafetymargins.
2001 2002 2003 2004 2005 2006
CARDS programme 800
(+200)880 830 750 750 750
Other external action 4145 4196 4345 4496 4591 4708
Total 4945
(+200)5076 5175 5246 5341 5458
Present ceiling (current prices) 4735 4840 4948 5058 5170 5285
Raising of ceiling +300 +300 +300 +300 +300 +300
Newceiling 5035 5140 5248 5358 5470 5585
Margin 90 64 73 112 129 127
Flexibility instrument (200)
The increase in the ceiling for 2001 allows, in respect of Serbia, only for the
/uni20AC40 million already provided for, as mentioned above. If the conditions for the full
amount of aid earmarked for this country in the CARDS programme were to besatisfied this year, the margin available beneath the ceiling for the heading and theflexibility instrument would be called on in accordance withthe IIA.
From 2002 onwards, the ce ilings allow for all the programmed assistance for Serbia.
However, the increases will be "frozen" and may not be used for other purposes aslong as the political conditions attached to the granting of the aid have not beensatisfied in Serbia. The Commission proposes that this be stipulated in the decision onthe revisionofthe financialperspective to be takenbythe budgetaryauthority.
62.2.3. Savings expected beneath the ceiling for sub-heading 1.a "CAP (not including rural
development)"
In order to keep unchanged the overall expenditure ceiling, the Commission has
considered the possibilities of offsetting the increase in the heading 4 ceiling bylowering the ceilings for the other headings.
The Commission can see no real possibility of offsetting the increase by lowering the
ceilings for any of the other headings (or sub-headings) 1.b, 3, 5 or 6 of the financialperspective. The IIA rules out any such reductions, in connection with a revision ofthe financialperspective, for headings 2 and 7.
On the other hand, the most recent forecasts available for expenditure under
sub-heading 1.a show that for 2001, assuming no change in legislation and tightmanagement by the Commission, there will be an available margin of some
/uni20AC400 million. For 2002, the planned adjustments to certain market organisations, in
particular the sugar market, should release an equivalent margin beneath this ceiling.
The Commission therefore proposes that the ceiling for sub-heading 1.a be lowered by
/uni20AC300 million for each of the two years 2001 and 2002, thus leaving a certain safety
margin. Althoughsimilar savings should be made inthe subsequent years (2003-06), itis proposed that the present ceiling for the sub-heading for these years be leftunchanged in order not to prejudge the outcome of the examination of the report thatthe Commission must present to the Council in 2002, as required by the conclusionsof the Berlin European Council, on the development of agricultural expenditure andanyproposals whichmaybe attached inline withthe objectives ofthe reform.
2.3. Impact on the overallexpenditure ceilingsin the financialperspective
For 2001 and 2002, the overall ce iling of the financial perspective in appropriations
for commitments would not be affected because of the offsetting between headings 4and 1.a. The same would be true for the overall ceiling in appropriations forpayments.
For subsequent years, the overall ceiling in appropriations for commitments, like that
for heading 4, would rise by
/uni20AC300 million a year. It is proposed, however, that this
increase should not be taken into account in the total expenditure in commitments inthe budget procedures for the years in question. The overall ce iling in appropriations
for payments would therefore remainunchanged.
3. R
ECLASSIFICATION ,UNDER HEADING 7OF THE FINANCIAL PERSPECTIVE ,OF AID
TOCYPRUSAND MALTA
3.1. Significance ofthis reclassification
The purpose oftransferring this aid fromheading 4 to heading 7 is to identifyit, in the
presentation of the financial perspective table, as pre-accession aid, the status it willhave when the legalbase is renewed.
Paragraph 21 of the IIA provides that when the financial perspective is revised, the
amounts available under headings 1 to 6 cannot be used for heading 7. The
7Commission believes, however, that in this specific case the proposed operation does
not alter the purpose to whichthe resources are assigned. The same amounts continueto be used for the same type of measures for the same recipients. It is no more than atransfer of budget lines from one heading to another to reflect the new title given tothis aid. It therefore believes that this reclassification is possible by a simple revisionof the financial perspective, rather than by the full-dress procedure, for purely formalreasons, ofamending the IIA.
3.2. Practicalarrangements
3.2.1. Financial perspective table
On the basis of the amounts alreadyprogrammed for aid to Cyprus and Malta and the
details given in the financial statement accompanying the proposal for a new legalbase, the total annual allocation for these two countries is
/uni20AC20 million a year.
Applying the same treatment in the financial perspective as for pre-accession aid forthe applicant countries of central and eastern Europe, this constant amount should beentered each year from 2001 to 2006, regardless of the actual date of accession. Thetransfer of this amount in appropriations for commitments does not affect the overallceiling for appropriations for payments.
For each of these years, the heading 4 ce iling would be lowered by this amount.
Heading 7 (Pre-accessionaid) would be divided into two sub-headings:
– One for the countries of central and eastern Europe, with the amounts currently
entered in the financial perspective and the breakdown given between the threeinstruments being applied for these countries (SAPARD, ISPAand PHARE).
– The other for the Mediterranean countries, covering for the moment the aids to
Cyprus and Malta, with an annual total of
/uni20AC20 million, with no further breakdown,
as pre-accession aid for these countries would come under a single specificinstrument.
3.2.2. Rewording of paragraph 11 of the IIA
Paragraph11 of the IIA provides that the breakdown between the three pre-accession
aid instruments in heading 7 of the financial perspective is indicative and can bealtered by common agreement of the two arms of the budgetary authority during thebudgetaryprocedure. This provision would be retained, but it would be specified thatit applies solely to the sub-heading concerning the applicant countries in central andeasternEurope.
3.2.3. Future reclassification, under heading 7 of the Financial Prespective, of aid to
Turquey
Once the legal basis is adopted, the Commission also intends to propose a transfer of
aid for Turqueyfromheading 4 to heading 7. To indicate this approach, a budget linefor pre-accessionaid to Turqueywitha p.m. willbe introduced under heading 7 in thePDB 2001. The actualtransfer ofthe corresponding appropriations fromheading 4 toheading 7 would, however, be intertakenat anappropriate later stage.
84. O VERVIEWOF THE PROPOSED REVISION OF THE FINANCIAL PERSPECTIVE
The table below summarises the proposed changes to the ceilings in the financial
perspective. These amounts are expressed incurrent values.
Inorder to remaincoherent and neutralinrelationto the technicaladjustments already
made for 2001 or to those which will be made for subsequent years, the formaldecision on the revision of the financial perspective must refer to the basic tableagreed in the IIA, which is expressed in constant 1999 prices. The amounts in currentvalues are converted into 1999 prices bymeans ofthe following deflators:
- for the amounts relating to 2001: a flat 2% a year applicable to heading 1 (4.04%
over the two years); the deflator actually used for the technical adjustment for 2001for amounts under the other headings concerned (headings 4 and 7), i.e. 3.84% overthe two years;
- for the amounts relating to 2002-06: the deflator applied from2002 onwards is 2% a
year for all headings, in accordance with the general assumption used for theconstruction of the financialperspective and the overallinflation rate applicable to theheading 1 ceilings.
9CHANGESINTHE CEILINGSOF THE FINANCIAL PERSPECTIVE (CURRENT PRICES )
Headings 2001 2002 2003 2004 2005 2006 Total
1. Agriculture -300 -300 - - - - -600
1.a CAP expenditure (not including ruraldevelopment) -300 -300 - - - - -600
4. Externalaction +280 +280 +280 +280 +280 +280 1680
- Financing ofthe CARDS programme +300 +300 +300 +300 +300 +300 +1800
- Transfer ofaid to Cyprus and Malta -20 -20 -20 -20 -20 -20 -120
7. Pre-accession aid +20 +20 +20 +20 -20 +20 +120
7.a Applicant countries incentraland easternEurope
- Agriculture- Pre-accessionstructuralinstruments- PHARE (applicant countries)- unchanged -
7.bMediterraneanapplicant countries +20 +20 +20 +20 +20 +20 +120
Totalappropriations forcommitments 0 0 +300 +300 +300 +300 +1200
Totalappropriationsforpayments - unchanged -
102000/0109 (COD)
Proposalfora
DECISION OF THE EUROPEAN PARLIAMENT AND THE COUNCIL
concerning the revision of the financialperspective
(InterinstitutionalAgreement of6 May 1999 on budgetary discipline and
improvement ofthe budgetary procedure)
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN
UNION,
Having regard to the Interinstitutional Agreement of 6 May 1999 on budgetary discipline
and improvement ofthe budgetaryprocedure,1and in particular paragraphs 19, 20 and 21
thereof,
Havingregardto theCommissionproposal,2
Whereas:(1) The Commission has presented a proposal for a Regulation for implementing a
programme of assistance for the reconstruction, development and stabilisation ofthewesternBalkans.
3
(2) Apart from the possibilities of reallocation within heading 4 (External action) of
the financial perspective, the financing of this programme will involve raising theceiling for this heading in the years 2001 to 2006. The increases for 2002 onwards
may not be used as long as the political conditions imposed on the granting of aidto Serbia, as set out withinthis programme, have not beensatisfied inthat country.
(3) The expenditure forecasts for 2001 in sub-heading 1.a "CAP expenditure (not
including rural development)" show that, assuming no change in legislation, amargin will be available beneath the ceiling. The planned adjustments to certainmarket organisations also point to such a margin in 2002. Although similar savingsare likely to be made in subsequent years, it would be wrong to prejudge theoutcome of the review, scheduled for 2002 in accordance with the conclusions ofthe Berlin European Council, of the development of agricultural spending. Theceiling for sub-heading 1.a can be lowered in 2001 and 2002 by an amount
equivalent to the amount by which the heading 4 ceiling is raised for these twoyears.
1OJ C 172, 18.6.1999, p. 1.
2COM(2000) … final of…
3COM(2000) … final of…
11(4) In accordance with the conclusions of the Helsinki European Council, the Council
adopted, on a proposal by the Commission, a new Regulation for aid to Cyprusand Malta to give it the status of pre-accession aid. The amount of this aid alreadyprogrammed should therefore be reclassified from heading 4 to a specialsubheading inserted in heading 7 (Pre-accession aid) of the financial perspective.Paragraph 11 of the Interinstitutional Agreement needs to be redrafted to takeaccount ofthis reclassification.
HAVE DECIDED AS FOLLOWS:
Article 1
1. The ceilings and the nomenclature of the financial perspective for EU-15 contained in
Annex I to the Interinstitutional Agreement are amended on the basis of the followingamounts expressed in current prices:
Heading 2001 2002 2003 2004 2005 2006
1. Agriculture -300 -300 - - - -
1.a CAP expenditure (not including
ruraldevelopment)-300 -300 - - - -
4. External action +280 +280 +280 +280 +280 +280
- Financing oftheCARDSprogramme +300 +300 +300 +300 +300 +300
- Transfer ofaid toCyprus and Malta -20 -20 -20 -20 -20 -20
7. Pre-accession aid +20 +20 +20 +20 -20 +20
7.a Applicant countriesin central and
eastern Europe- Agriculture-Pre-accession structuralinstruments- PHARE (applicant countries)-Unchanged-
7.bMediterranean applicant countries +20 +20 +20 +20 +20 +20
Total appropriations for
commitments0 0 +300 +300 +300 +300
Total appropriations for payments - Unchanged -
2. The increases in the heading 4 ceiling which are linked to the financing of the assistance
for Serbia will not be used before the political conditions attached to the granting of theaid in the programme for this countryhave been satisfied.
If the political conditions are met for the year 2003, The Commission and the budgetary
authority undertake to act, in the annual budget procedures, as if the total ce ilings in
appropriations for commitments for the years 2003 to 2006 were still the same as in theinitial financial perspective of 1999 indicated in footnote (3) of the tables annexed to this
12decision. In this case, the origin of the offsetting savings to the increase of category 4 will
be decided for the period 2003-2006 when the Commission will have presented theconclusions of the forthcoming review and report on the evolution of agricultureexpenditure accompagnied, ifnecessary, byappropriate proposals..
3. The financial framework for EU-21 contained in Annex II to the Interinstitutional
Agreement is amended inaccordance withparagraph1.
Article 2
The financial perspective table for EU-15 and the financial framework for EU-21, drawn
up in 1999 prices on the basis of the revisions set out in Article 1(1), are contained inAnnex A to this Decision. These tables shall replace those appearing in Annexes I and IIrespectivelyto the InterinstitutionalAgreement of6 May1999.
Article 3
Annex B to this Decision contains the financial perspective table for EU-15 applicable to
2001, incorporating the technical adjustment and the revisions set out in Article 1(1), andthe corresponding financial framework for EU-21. These tables shall replace thosecontained in the Commission communication on the technical adjustment of the financialperspective for 2001 inline withmovements inGNP and prices.
4
Article 4
The second subparagraph of paragraph 11 of the Interinstitutional Agreement is amended
as follows:
"However, the ceilings under sub-heading 7.a of the financial perspective (pre- accession
aid for the countries ofcentraland easternEurope) are indicative …".
Done at Brussels,
For the European Parliament For the Council
The President The President
4COM(2000) 93 final of17.2.2000.
13ANNEX A
FINANCIAL PERSPECTIVE EU-15 (REVISED)
(EUR million - 1999 prices)
APPROPRIATIONS FOR COMMITMENTS 2000 2001 2002 2003 2004 2005 2006
1. AGRICULTURE 40.920 42.512 43.617 43.770 42.760 41.930 41.660
CAP (not including ruraldevelopment) 36.620 38.192 39.287 39.430 38.410 37.570 37.290
Ruraldevelopment and accompanying measures 4.300 4.320 4.330 4.340 4.350 4.360 4.370
2. STRUCTURAL OPERATIONS 32.045 31.455 30.865 30.285 29.595 29.595 29.170
StructuralFunds 29.430 28.840 28.250 27.670 27.080 27.080 26.660
CohesionFund 2.615 2.615 2.615 2.615 2.515 2.515 2.510
3. INTERNAL POLICIES (1) 5.930 6.040 6.150 6.260 6.370 6.480 6.600
4. EXTERNAL ACTION 4.550 4.830 4.834 4.839 4.843 4.849 4.854
5. ADMINISTRATION (2) 4.560 4.600 4.700 4.800 4.900 5.000 5.100
6. RESERVES 900 900 650 400 400 400 400
Monetaryreserve 500 500 250
Emergencyaid reserve 200 200 200 200 200 200 200
Guarantee reserve 200 200 200 200 200 200 200
7. PRE-ACCESSION AID 3.120 3.139 3.139 3.139 3.139 3.138 3.138
7a Applicant countries in centraland eastern Europe 3.120 3.120 3.120 3.120 3.120 3.120 3.120
Agriculture 520 520 520 520 520 520 520
Pre-accessionstructuralinstrument 1.040 1.040 1.040 1.040 1.040 1.040 1.040
PHARE (applicant countries) 1.560 1.560 1.560 1.560 1.560 1.560 1.560
7b Mediterranean applicant countries 19 19 19 19 18 18
TOTAL APPROPRIATIONS FOR COMMITMENTS (3) 92.025 93.476 93.955 93.493 92.007 91.392 90.922
TOTAL APPROPRIATIONS FOR PAYMENTS 89.600 91.110 94.220 94.880 91.910 90.160 89.620
Appropriations forpayments as %ofGNP 1,13% 1,12% 1,13% 1,11% 1,05% 1,00% 0,97%
14AVAILABLE FOR ACCESSION (appropriations forpayments) 4.140 6.710 8.890 11.440 14.220
Agriculture 1.600 2.030 2.450 2.930 3.400
Other expenditure 2.540 4.680 6.440 8.510 10.820
CEILING, APPROPRIATIONS FOR PAYMENTS 89.600 91.110 98.360 101.590 100.800 101.600 103.840
Ceiling, payments as %ofGNP 1,13% 1,12% 1,18% 1,19% 1,15% 1,13% 1,13%
Margin forunforeseen expenditure 0,14% 0,15% 0,09% 0,08% 0,12% 0,14% 0,14%
Own resources ceiling 1,27% 1,27% 1,27% 1,27% 1,27% 1,27% 1,27%
(1) In accordance with Article 2 of Decision No182/1999/EC of the European Parliament and of the Council and Article 2 of Council
Decision1999/64/Euratom (OJ L 26, 1.2.1999, p.1 and p. 34), /uni20AC11 510 million at current prices is available for research over the period
2000-02.(2) The expenditure on pensions included under the ceiling for this heading is calculated net of staff contributions to the pension scheme,up to a maximumof
/uni20AC1 100 million at 1999 prices for the period 2000-06.
(3) The Commission and the budgetary authority undertake to act, during the annual budget procedures, as if the actual ce ilings for total
appropriations for commitments were as follows for the years 2003 to 2006:
2003 2004 2005 2006
93.215 91.735 91.125 90.660
15FINANCIAL PERSPECTIVE EU-21 (REVISED)
(EUR million - 1999 prices)
APPROPRIATIONS FOR COMMITMENTS 2000 2001 2002 2003 2004 2005 2006
1. AGRICULTURE 40.920 42.512 43.617 43.770 42.760 41.930 41.660
CAP (not including ruraldevelopment) 36.620 38.192 39.287 39.430 38.410 37.570 37.290
Ruraldevelopment and accompanying measures 4.300 4.320 4.330 4.340 4.350 4.360 4.370
2. STRUCTURAL OPERATIONS 32.045 31.455 30.865 30.285 29.595 29.595 29.170
StructuralFunds 29.430 28.840 28.250 27.670 27.080 27.080 26.660
CohesionFund 2.615 2.615 2.615 2.615 2.515 2.515 2.510
3. INTERNAL POLICIES (1) 5.930 6.040 6.150 6.260 6.370 6.480 6.600
4. EXTERNAL ACTION 4.550 4.830 4.834 4.839 4.843 4.849 4.854
5. ADMINISTRATION (2) 4.560 4.600 4.700 4.800 4.900 5.000 5.100
6. RESERVES 900 900 650 400 400 400 400
Monetaryreserve 500 500 250
Emergencyaid reserve 200 200 200 200 200 200 200
Guarantee reserve 200 200 200 200 200 200 200
7. PRE-ACCESSION AID 3.120 3.139 3.139 3.139 3.139 3.138 3.138
7a Applicant countries in centraland eastern Europe 3.120 3.120 3.120 3.120 3.120 3.120 3.120
Agriculture 520 520 520 520 520 520 520
Pre-accessionstructuralinstrument 1.040 1.040 1.040 1.040 1.040 1.040 1.040
PHARE (applicant countries) 1.560 1.560 1.560 1.560 1.560 1.560 1.560
7b Mediterranean applicant countries 19 19 19 19 18 18
8. ENLARGEMENT 6.450 9.030 11.610 14.200 16.780
Agriculture 1.600 2.030 2.450 2.930 3.400
Structuraloperations 3.750 5.830 7.920 10.000 12.080
Internalpolicies 730 760 790 820 850
Administration 370 410 450 450 450
16CEILING, APPROPRIATIONS FOR COMMITMENTS (3) 92.025 93.476 100.405 102.523 103.617 105.592 107.702
CEILING, APPROPRIATIONS FOR PAYMENTS 89.600 91.110 98.360 101.590 100.800 101.600 103.840
of which: enlargement 4.140 6.710 8.890 11.440 14.220
Ceiling, payments as %ofGNP 1,13% 1,12% 1,14% 1,15% 1,11% 1,09% 1,09%
Margin forunforeseen expenditure 0,14% 0,15% 0,13% 0,12% 0,16% 0,18% 0,18%
Own resources ceiling 1,27% 1,27% 1,27% 1,27% 1,27% 1,27% 1,27%
(1) In accordance with Article 2 of Decision No182/1999/EC of the European Parliament and of the Council and Article 2 of Council
Decision1999/64/Euratom(OJ L 26, 1.2.1999, p.1 and p. 34), /uni20AC11 510 million at current prices is available for research over the period
2000-02.(2) The expenditure on pensions included under the ceiling for this heading is calculated net of staff contributions to the pension scheme,up to a maximumof
/uni20AC1 100 million at 1999 prices for the period 2000-06.
(3) The Commissionand the budgetaryauthorityundertake to act, during the annualbudget procedures, as ifthe actualce ilings for total
appropriations for commitments were as follows for the years 2003 to 2006:
2003 2004 2005 2006
102.245 103.345 105.325 107.440
17ANNEX B
FINANCIAL PERSPECTIVE EU-15 (REVISED)
ADJUSTED TO 2001 PRICES
(EUR million)
Current prices 2001 prices
APPROPRIATIONS FOR COMMITMENTS 2000 2001 2002 2003 2004 2005 2006
1. AGRICULTURE 41.738 44.230 45.379 45.538 44.488 43.624 43.344
CAP (not including ruraldevelopment) 37.352 39.735 40.874 41.023 39.962 39.088 38.797
Ruraldevelopment and accompanying measures 4.386 4.495 4.505 4.515 4.526 4.536 4.547
2. STRUCTURAL OPERATIONS 32.678 32.720 32.106 31.503 30.785 30.785 30.343
StructuralFunds 30.019 30.005 29.391 28.788 28.174 28.174 27.737
CohesionFund 2.659 2.715 2.715 2.715 2.611 2.611 2.606
3. INTERNAL POLICIES (1) 6.031 6.272 6.386 6.500 6.614 6.729 6.853
4. EXTERNAL ACTION 4.627 5.015 5.019 5.025 5.029 5.035 5.040
5. ADMINISTRATION (2) 4.638 4.776 4.880 4.984 5.088 5.192 5.296
6. RESERVES 906 916 666 416 416 416 416
Monetaryreserve 500 500 250
Emergencyaid reserve 203 208 208 208 208 208 208
Guarantee reserve 203 208 208 208 208 208 208
7. PRE-ACCESSION AID 3.174 3.260 3.260 3.260 3.260 3.259 3.259
7a Applicant countries in centraland eastern Europe 3.174 3.240 3.240 3.240 3.240 3.240 3.240
Agriculture 529 540 540 540 540 540 540
Pre-accessionstructuralinstrument 1.058 1.080 1.080 1.080 1.080 1.080 1.080
PHARE (applicant countries) 1.587 1.620 1.620 1.620 1.620 1.620 1.620
7b Mediterranean applicant countries 20 20 20 20 19 19
TOTAL APPROPRIATIONS FOR COMMITMENTS (3) 93.792 97.189 97.696 97.226 95.680 95.040 94.551
18TOTAL APPROPRIATIONS FOR PAYMENTS 91.322 94.730 97.975 98.671 95.581 93.759 93.197
Appropriations forpayments as %ofGNP 1,12% 1,11% 1,12% 1,10% 1,04% 1,00% 0,97%
AVAILABLE FOR ACCESSION (appropriations forpayments) 4.306 6.979 9.247 11.899 14.792
Agriculture 1.665 2.112 2.549 3.048 3.537
Other expenditure 2.641 4.867 6.698 8.851 11.255
CEILING, APPROPRIATIONS FOR PAYMENTS 91.322 94.730 102.281 105.650 104.828 105.658 107.989
Ceiling, payments as %ofGNP 1,12% 1,11% 1,17% 1,18% 1,14% 1,12% 1,12%
Margin forunforeseen expenditure 0,15% 0,16% 0,10% 0,09% 0,13% 0,15% 0,15%
Own resources ceiling 1,27% 1,27% 1,27% 1,27% 1,27% 1,27% 1,27%
(1) Inaccordance withArticle 2 ofDecisionNo182/1999/EC ofthe EuropeanParliament and ofthe Counciland Article 2 ofCouncilDecision
1999/64/Euratom(OJ L26, 1.2.1999, p. 1 and p. 34), /uni20AC11 510 million at current prices is available for research over the period 2000-02.
(2) The expenditure on pensions included under the ceiling for this heading is calculated net of staff contributions to the pension scheme, up to amaximum of
/uni20AC1 100 million at 1999 prices for the period 2000-06.
(3) The Commissionand the budgetaryauthorityundertake to act, during the annualbudget procedures, as ifthe actualce ilings for total
appropriations for commitments were as follows for the years 2003 to 2006:
2003 2004 2005 2006
96.937 95.397 94.762 94.279
19FINANCIAL FRAMEWORK EU-21 (REVISED)
ADJUSTED TO 2001 PRICES
(EUR million)
Current prices 2001 prices
APPROPRIATIONS FOR COMMITMENTS 2000 2001 2002 2003 2004 2005 2006
1. AGRICULTURE 41.738 44.230 45.379 45.538 44.488 43.624 43.344
CAP (not including ruraldevelopment) 37.352 39.735 40.874 41.023 39.962 39.088 38.797
Ruraldevelopment and accompanying measures 4.386 4.495 4.505 4.515 4.526 4.536 4.547
2. STRUCTURAL OPERATIONS 32.678 32.720 32.106 31.503 30.785 30.785 30.343
StructuralFunds 30.019 30.005 29.391 28.788 28.174 28.174 27.737
CohesionFund 2.659 2.715 2.715 2.715 2.611 2.611 2.606
3. INTERNAL POLICIES (1) 6.031 6.272 6.386 6.500 6.614 6.729 6.853
4. EXTERNAL ACTION 4.627 5.015 5.019 5.025 5.029 5.035 5.040
5. ADMINISTRATION (2) 4.638 4.776 4.880 4.984 5.088 5.192 5.296
6. RESERVES 906 916 666 416 416 416 416
Monetaryreserve 500 500 250
Emergencyaid reserve 203 208 208 208 208 208 208
Guarantee reserve 203 208 208 208 208 208 208
7. PRE-ACCESSION AID 3.174 3.260 3.260 3.260 3.260 3.259 3.259
7a Applicant countries in centraland eastern Europe 3.174 3.240 3.240 3.240 3.240 3.240 3.240
Agriculture 529 540 540 540 540 540 540
Pre-accessionstructuralinstrument 1.058 1.080 1.080 1.080 1.080 1.080 1.080
PHARE (applicant countries) 1.587 1.620 1.620 1.620 1.620 1.620 1.620
7b Mediterranean applicant countries 20 20 20 20 19 19
8. ENLARGEMENT 6.709 9.393 12.076 14.770 17.455
Agriculture 1.665 2.112 2.549 3.048 3.537
Structuraloperations 3.902 6.066 8.240 10.404 12.568
Internalpolicies 758 789 820 851 883
20Administration 384 426 467 467 467
TOTAL APPROPRIATIONS FOR COMMITMENTS (3) 93.792 97.189 104.405 106.619 107.756 109.810 112.006
TOTAL APPROPRIATIONS FOR PAYMENTS 91.322 94.730 102.281 105.650 104.828 105.658 107.989
of which: enlargement 4.306 6.979 9.247 11.899 14.792
Appropriations forpayments as %ofGNP 1,12% 1,11% 1,13% 1,13% 1,10% 1,08% 1,07%
Margin forunforeseen expenditure 0,15% 0,16% 0,14% 0,14% 0,17% 0,19% 0,20%
Own resources ceiling 1,27% 1,27% 1,27% 1,27% 1,27% 1,27% 1,27%
(1) In accordance with Article 2 of Decision No182/1999/EC of the European Parliament and of the Council and Article 2 of Council Decision
1999/64/Euratom(OJ L26, 1.2.1999, p. 1 and p. 34), /uni20AC11 510 million at current prices is available for research over the period 2000-02.
(2) The expenditure on pensions included under the ceiling for this heading is calculated net of staff contributions to the pension scheme, up to amaximum of
/uni20AC1 100 million at 1999 prices for the period 2000-06.
(3) The Commission and the budgetary authority undertake to act, during the annual budget procedures, as if the actual ce ilings for total
appropriations for commitments were as follows for the years 2003 to 2006:
2003 2004 2005 2006
106.330 107.473 109.532 111.734