WRITTEN QUESTION E-0902/02

by Esko Seppänen (GUE/NGL) to the Commission

(4 April 2002)

Subject: Reducing surplus appropriations

Preliminary information concerning the implementation of the EU budget for 2001 indicates that unused appropriations (RAL montants restant à liquider) have again increased significantly. What is the latest information

on the subject, and how will the Commission act more effectively to reduce them radically, rather than merely waiting for the rule to come into operation whereby they lapse after a certain period? Can the Commission estimate how the situation with regard to RAL will develop between 2002 and 2006?

Answer given by Mrs Schreyer on behalf of the Commission

(15 May 2002)

The total amount of outstanding commitments (RAL for differentiated appropriations) has indeed increased substantially during 2001 from EUR 65,6 billion in the beginning of the year to EUR 86,8 billion at the end of the year, i.e., by EUR 21,2 billion (preliminary figures).

The main reason for this increase is the new system with automatic commitments for the Structural Funds since 2000. At the beginning of each year, the entire amount of the annual programme allocations for the Structural Funds is directly entered into the accounts as commitments. These commitments are then consumed by advance payments and reimbursements of costs occurred by the Member States in implementing the Structural Funds' programmes. Both in 2000 and in 2001, the volume of reimbursements was quite modest, as Member States have so far presented only a limited number of such claims. Accordingly, the RAL for the Structural Funds increased in 2001 from EUR 32,9 billion to EUR 50,2 billion, i.e., with EUR 17,3 billion. This explains more than 80 % of the total increase in the RAL.

The other reasons for an increase in the RAL relate mainly to the Cohesion Fund (+ EUR 1,1 billion), Internal Policies (+ EUR 1,0 billion) and the Pre-accession Aid (+ EUR 1,8 billion). The latter is mainly due to the start up phase of the new ISPA and Special Accession Programme for Agriculture and Rural Development (Sapard) programmes. For external actions, the volume of RAL did not increase during 2001, and that for the first time.

In accordance with the Joint Declaration of November 2001, as part of the 2002 budget procedure, the Commission will particularly focus on managing the RAL that is more than five years old and/or without payments in the last two years. A part of this potentially abnormal RAL is unjustified, and should be de-committed, thus reducing the overall outstanding RAL. The Commission will establish an action plan in order to examine some 16 000 commitments, which add up to EUR 11,7 billion. The Commission will provide the first report to the Budget Authority in June 2002, to be followed up by regular progress reports, on a number of selected budget lines, as specified by the Budget Authority.

For the period until 2006, the evolution of the RAL will depend decisively on the pace of the Member States' implementation of the Structural Funds. It is still premature to provide a forecast for this. Nevertheless, the Commission is improving the annual forecasting in co-operation with the Member States, aiming at more realistic budgeting. The Structural Funds' new regulations with a system of automatic de-commitments in cases where Member States have not made use of their programme allocations within a time-limit will also stabilise the RAL for the Structural Funds.