Interinstitutional Agreement of 6 May 1999 between the European Parliament, the Council and the Commission on budgetary discipline and improvement of the budgetary procedure
Date: 1999-05-06
Institutions: Council of the European Union, European Commission, European Parliament
Subjects: Council of the European Union, European Commission, European Parliament, budgetary discipline (EU), budgetary procedure, interinstitutional agreement

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I

(Information)

EUROPEAN PARLIAMENT
COUNCIL
COMMISSION

INTERINSTITUTIONAL AGREEMENT

of 6 May 1999

between the European Parliament, the Council and the Commission on budgetary
discipline and improvement of the budgetary procedure

(1999/C 172/01)

1. The purpose of

this Agreement

concluded
between the European Parliament, the Council
and the Commission, hereafter referred to as the
(cid:28)institutions’, is to implement budgetary discipline
and to improve the functioning of the annual
budgetary procedure and cooperation between
the institutions on budgetary matters.

2. Budgetary discipline under this Agreement covers
all
the
institutions involved in its implementation for as
long as the Agreement is in force.

is binding on all

expenditure.

It

— Part

relates

II
interinstitutional
budgetary procedure.

to

improvement
collaboration during

of
the

6. Whenever it considers it necessary and at all
events at the same time as any proposal for a
new financial perspective presented pursuant to
the Commission will present a
paragraph 26,
this Agreement,
report on the application of
proposed
accompanied where
amendments.

necessary

by

3. This Agreement does not alter the respective
budgetary powers of the various institutions, as
laid down in the Treaties.

7. This Agreement enters into force on 1 January

2000. It replaces with effect from the same date:

4. Any amendment of this Agreement requires the
consent of all the institutions which are party to
it. Changes to the financial perspective must be
made in accordance with the procedures laid
down for this purpose in this Agreement.

5. This Agreement is in two parts:

— Part I contains a definition and implementing
provisions for the financial perspective 2000
to 2006 and applies for the duration of that
financial perspective,

— the

Joint Declaration by

the European
Parliament, the Council and the Commission
of 30 June 1982 on various measures to
improve the budgetary procedure (1),

— the Interinstitutional Agreement of 29 October
1993 between the European Parliament, the
Council and the Commission on budgetary
discipline and improvement of the budgetary
procedure (2),

(1) OJ C 194, 28.7.1982, p. 1.
(2) OJ C 331, 7.12.1993, p. 1.

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— the Declaration by the European Parliament,
the Council and the Commission of 6 March
1995 on the
financial
provisions into legislative acts (3),

incorporation of

— the Joint Declaration of 12 December 1996
concerning the improvement of information
to the budgetary
authority on fisheries
agreements (4),

— the Interinstitutional Agreement between the
European Parliament,
the Council and the
European Commission of 16 July 1997 on
provisions regarding financing of the common
foreign and security policy (5),

— the Interinstitutional Agreement of 13 October
1998 between the European Parliament, the
Council and the Commission on legal bases
and implementation of the budget (6).

PART I — FINANCIAL PERSPECTIVE 2000 to 2006:
DEFINITION AND IMPLEMENTING PROVISIONS

A. Contents and scope of the financial perspective

8. The 2000 to 2006 financial perspective, set out in
this
Annex I,
reference
Agreement.
framework
budgetary
discipline. Its contents are consistent with the
conclusions of the Berlin European Council of 24
and 25 March 1999.

an integral part of
constitutes
the
interinstitutional

forms
It
for

9. The financial perspective is intended to ensure
that,
in the medium term, European Union
expenditure, broken down by broad category,
develops in an orderly manner and within the
limits of own resources.

10. The

to

2006

2000

financial

perspective
establishes, for each of the years and for each
heading or subheading, amounts of expenditure
in terms of appropriations
for commitments.
totals of expenditure are also
Overall annual
shown in terms of both appropriations
for
commitments and appropriations for payments.
The appropriations for payments left available
for enlargement and to be used in accordance
with the second subparagraph of paragraph 25
are also identified.

(3) OJ C 102, 4.4.1996, p. 4.
(4) OJ C 20, 20.1.1997, p. 109.
(5) OJ C 286, 22.9.1997, p. 80.
(6) OJ C 344, 12.11.1998, p. 1.

All these amounts are expressed in 1999 prices,
except
the monetary reserve, where the
amounts are expressed in current prices.

for

The financial perspective does not take account
of budget items financed by earmarked revenue
within the meaning of Article 4 of the Financial
Regulation of 21 December 1977 applicable to
European
the
Communities (7), hereafter
the
(cid:28)Financial Regulation’.

referred to as

general

budget

the

of

Specific items of expenditure may be financed
only up to the ceiling fixed for this purpose and
without prejudice to the second subparagraph of
paragraph 11.

Information relating to operations not included in
the general budget of the European Communities
and the foreseeable development of the various
categories of Community own resources are set
out, by way of indication, in separate tables. This
information is updated annually when the
technical adjustment
is made to the financial
perspective.

The agricultural guideline remains unchanged. It
will be re-examined on the basis of a report
to the
which the Commission will present
Council before the next enlargement of
the
European Union in order to make any adjustment
considered necessary.

11. The institutions acknowledge that each of the
absolute amounts shown in the 2000 to 2006
financial perspective represents an annual ceiling
on expenditure under the general budget of the
European Communities. Without prejudice to
any changes in these ceilings in accordance with
the provisions contained in this Agreement, they
undertake to use their respective powers in such a
to comply with the various annual
way as
expenditure
each budgetary
procedure and when implementing the budget for
the year concerned.

ceilings

during

However, the ceilings under heading 7 of the
are
financial perspective
indicative by nature and the two arms of the

(pre-accession aid)

(7) OJ L 356, 31.12.1977, p. 1.

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budgetary authority may jointly decide to alter
the breakdown in the course of the budgetary
procedure.

B. Annual adjustments of the financial perspective

Technical adjustments

12. The two arms of the budgetary authority agree to
accept, for the duration of the 2000 to 2006
financial perspective,
the maximum rates of
increase for non-compulsory expenditure deriving
from the budgets established within the ceilings
set by the financial perspective.

15. Each year the Commission, acting ahead of the
budgetary procedure for year n + 1, will determine
the agricultural guideline and make the following
technical adjustments to the financial perspective
in line with movements in gross national product
(GNP) and prices:

Except in heading 2 of the financial perspective
(structural operations), for the purposes of sound
financial management, the institutions will ensure
as far as possible during the budgetary procedure
and at the time of the budget’s adoption that
sufficient margins are left available beneath the
ceilings for the various headings.

Within the maximum rates of increase for non-
compulsory expenditure specified in the first
subparagraph, the European Parliament and the
Council undertake to respect the allocations of
commitment appropriations provided in the
financial perspective for structural operations.

13. No act adopted under the co-decision procedure
by the European Parliament and the Council nor
any act adopted by the Council which involves
exceeding the appropriations available in the
in the
budget or
financial
accordance with
paragraph 11 may be implemented in financial
terms until the budget has been amended and, if
necessary,
the financial perspective has been
appropriately revised in accordance with the
relevant procedure for each of these cases.

the allocations available
in

perspective

14. For each of the years covered by the financial
perspective, the total appropriations for payments
required, after annual adjustment and taking
account of any other adjustments or revisions,
must not be such as to produce a call-in rate for
own resources that exceeds the ceiling in force
for these resources.

If need be,
the budgetary
the two arms of
authority will decide, acting on a proposal from
the Commission and in accordance with the
voting rules laid down in the fifth subparagraph
of Article 272(9) of the Treaty establishing the
European Community (hereafter referred to as
the (cid:28)EC Treaty’), to lower the ceilings set in the
financial
ensure
compliance with the ceiling on own resources.

perspective

order

to

in

(a) revaluation, at year n + 1 prices, of the ceilings
and of the overall figures for appropriations
for
for
commitments and appropriations
payments, with the exception of the monetary
reserve;

(b) calculation of the margin available under the

own resources ceiling.

1

of

the

these

the
financial

technical adjustment of

technical
The Commission will make
adjustments on the basis of
the most recent
economic data and forecasts available. However,
ceiling for
the
heading
perspective
(agriculture) will be based on a deflator of 2 % a
year. The technical adjustment of the ceiling for
the (cid:28)Structural Funds’ subheading will be based
on the overall deflator stipulated in the Structural
Funds
the
for
programming of
the corresponding operations.
The index base against which the allocations for
2004 to 2006 are pegged will be reviewed by
way of technical adjustment, if necessary, by the
Commission before 31 December 2003 on the
basis of the most recent information available.
the
There will be no ex-post adjustment of
allocations for earlier years.

determining

regulations

results of

such adjustments

The
and the
be
underlying
will
communicated to the two arms of the budgetary
authority.

economic

forecasts

No further technical adjustments will be made in
respect of the year concerned, either during the
year or as ex-post corrections during subsequent
years.

Adjustments connected with implementation

16. When notifying the two arms of the budgetary
the technical adjustments to the
authority of
financial
the Commission will
present any proposals for adjustments to the total

perspective,

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appropriations for payments which it considers
necessary,
to
ensure an orderly progression in relation to the
appropriations for commitments.

in the light of

implementation,

adoption of

17. For the adjustment exercise in 2001 and in the
event of delays
the
in the
programmes for structural operations, the two
arms of the budgetary authority undertake to
authorise, on a proposal from the Commission,
the transfer to subsequent years, in excess of the
corresponding ceilings on expenditure, of
the
allocations not used in 2000.

18. The European Parliament and the Council will
take decisions on these proposals before 1 May
of year n, in accordance with the voting rules laid
down in the fifth subparagraph of Article 272(9)
of the EC Treaty.

C. Revision of the financial perspective

19.

In addition to the regular technical adjustments
and adjustments in line with the conditions of
implementation, the financial perspective may be
revised in compliance with the own resources
ceiling, on a proposal from the Commission, in
the event of unforeseen circumstances.

20. As a general rule, any such proposal for revision
must be presented and adopted before the start of
the budgetary procedure for the year or the first
of the years concerned.

Any decision to revise the financial perspective by
up to 0,03 % of the Community GNP within the
margin for unforeseen expenditure will be taken
jointly by the
the budgetary
two arms of
authority acting in accordance with the voting
rules laid down in the fifth subparagraph of
Article 272(9) of the EC Treaty.

Any revision of the financial perspective above
0,03 % of
the Community GNP within the
margin for unforeseen expenditure will be taken
jointly by the
the budgetary
two arms of
authority, with the Council acting unanimously.

particular

reallocating expenditure between the programmes
covered by the heading concerned by the
revision, with
any
expected under-utilisation of appropriations. The
objective should be that a significant amount, in
absolute terms and as a percentage of the new
expenditure planned,
should be within the
existing ceiling for the heading.

reference

to

The institutions will also examine the scope for
offsetting raising the ceiling for one heading by
lowering the ceiling for another.

Amounts available under headings 1 to 6 of the
financial perspective cannot at any time be used
for heading 7 of the financial perspective (pre-
accession assistance) and, conversely, expenditure
reserved for pre-accession assistance cannot be
used for headings 1 to 6.

Amounts available for accession can be used only
in order to cover expenditure arising as a direct
consequence of enlargement, and cannot cover
unforeseen expenditure arising under headings 1
the financial perspective. Conversely,
to 7 of
expenditure earmarked for headings 1 to 7
cannot be used to supplement the cost of new
accessions.

Any revision of the compulsory expenditure in
the financial perspective may not
lead to a
reduction in the amount available for non-
compulsory expenditure.

Any revision must maintain an appropriate
relationship between commitments and payments.

D. Consequences of the absence of a joint decision on
the adjustment or revision of the financial perspective

22.

In the absence of a joint decision by the
European Parliament and the Council on any
adjustment or revision of the financial perspective
proposed by the Commission, the amounts set
previously will,
technical
adjustment, continue to apply as the expenditure
ceilings for the year in question.

annual

after

the

E. Reserves

21. Except

for expenditure under heading 2,

institutions will

examine

the

scope

the
for

23. The three reserves appearing in heading 6 of the
financial perspective are entered in the general

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budget of
the European Communities. The
necessary resources will be called in only when
these reserves are implemented:

(a) the monetary reserve is intended to cover,
during the years 2000 to 2002, the impact on
agricultural budget expenditure of significant
and unforeseen movements in the euro/United
States dollar parity in relation to the parity
used in the budget;

(b) the reserve for guaranteeing loans to non-
member countries is intended to endow the
budget headings which will be drawn on to
constitute the Guarantee Fund (8) and for any
additional payments to be made should a
debtor default;

(c) the purpose of the emergency aid reserve is to
provide a rapid response to the specific aid
requirements
countries
following events which could not be foreseen
when the budget was established, first and
foremost for humanitarian operations.

non-member

of

When the Commission considers that one of
these reserves needs to be called on,
it will
present a proposal for a corresponding transfer to
the two arms of the budgetary authority.

Any Commission proposal to draw on the reserve
for emergency aid must, however, be preceded by
an examination of
the scope for reallocating
appropriations.

At the same time as it presents its proposal for a
transfer, the Commission will initiate a trialogue
procedure, if necessary in a simplified form, to
secure the agreement of the two arms of the
budgetary authority on the need to use the
reserve and on the amount required.

If the Commission’s proposal fails to secure the
agreement of
the budgetary
the two arms of
authority, and if the European Parliament and the
Council are unable to agree on a common
position, they will refrain from taking a decision
on the Commission’s proposal for a transfer.

F. Flexibility instrument

24. The flexibility instrument with an annual ceiling
intended to allow

of EUR 200 million is

indicated,

financing, for a given financial year and up to the
amount
identified
of
expenditure which could not be financed within
the limits of the ceilings available for one or
more other headings.

clearly

The portion of the annual amount which is not
used may be carried over up to year n + 2. If the
instrument is mobilised, any carryovers will be
drawn on first, in order of age. The portion of
the annual amount from year n which is not used
in year n + 2 will lapse.

The flexibility instrument should not, as a rule,
be used to cover the same needs two years
running.

The Commission will make a proposal for the
to be used after it has
flexibility instrument
re-allocating
examined
requiring
appropriations under
additional expenditure.

the heading

possibilities

for

all

The proposal will concern the principle of
making use of the instrument and will identify
the needs to be covered and the amount required.
It may be presented, for any given financial year,
during the budgetary procedure. The Commission
proposal will be included in the preliminary draft
budget or accompanied, in accordance with the
Financial Regulation,
appropriate
budgetary instrument.

the

by

The decision to deploy the flexibility instrument
will be taken jointly by the two arms of the
budgetary authority in accordance with the
voting rules under the fifth subparagraph of
Article 272(9) of the EC Treaty. Agreement will
conciliation
be
procedure provided for in Part II, Section A and
Annex III to this Agreement.

reached by means of

the

G. Adjustment of the financial perspective to cater for
enlargement

25. Where the Union is enlarged to include new
Member States during the period covered by the
financial perspective,
the European Parliament
and the Council, acting on a proposal from the
Commission and in accordance with the voting
of
rules
fifth
Article 272(9) of
jointly
adjust the financial perspective to take account of
the expenditure requirements resulting from this
enlargement.

the EC Treaty, will

subparagraph

under

the

(8) Set up by Council Regulation (EC, Euratom) No 2728/

94 (OJ L 293, 12.11.1994, p. 1).

Without prejudice
the
accession negotiations, the change in the headings

to the outcome of

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concerned should not exceed the amounts shown
in the indicative financial framework based on
the assumption of an enlarged Union with six
new Member States from 2002 and contained in
Annex II, which forms an integral part of this
Agreement.

The additional requirements will be covered by
the available amounts set aside for this purpose
in the financial perspective and, if necessary, by
using the additional own resources resulting from
the increased Community GNP after enlargement
of the Union.

H. Duration of the financial perspective and
consequences of the absence of a financial perspective

26. Before 1 July 2005, the Commission will present
for a new medium-term financial

proposals
perspective.

the

existing

financial perspective

Should the two arms of the budgetary authority
fail to agree on a new financial perspective, and
is
unless
expressly denounced by one of the parties to this
Agreement, the ceilings for the last year covered
by the existing financial perspective will be
adjusted in accordance with paragraph 15 by
applying to these amounts the average rate of
increase observed over
the preceding period,
excluding any adjustments made to take account
of enlargement of the Union. This rate of increase
may not, however, exceed the rate of growth of
Community GNP for the year concerned.

PART II — IMPROVEMENT OF INTERINSTITUTIONAL
COLLABORATION DURING THE BUDGETARY
PROCEDURE

A. The interinstitutional collaboration procedure

27. The institutions agree to set up a procedure for
interinstitutional
budgetary
collaboration
matters. The details of this collaboration are set
out in Annex III, which forms an integral part of
this Agreement.

in

B. Establishment of the budget

28. The Commission will present

preliminary
Community’s actual financing requirements.

budget

draft

each year a
the
showing

It will take into account:

— the

capacity for utilising appropriations,
endeavouring to maintain a strict relationship
between appropriations for commitments and
appropriations for payments,

— the possibilities for starting up new policies
through pilot projects and/or new preparatory
operations
continuing multiannual
operations which are coming to an end, after
assessing whether it will be possible to secure
a
of
basic
paragraph 36,

the meaning

act, within

or

— the need to ensure that any change in
expenditure in relation to the previous year is
in
of
budgetary discipline.

accordance with

constraints

the

29. The institutions will, as far as possible, avoid
entering items in the budget carrying insignificant
amounts of expenditure on operations.

The two arms of the budgetary authority also
undertake to bear in mind the assessment of the
possibilities for implementing the budget made by
the Commission in its preliminary drafts and in
connection with implementation of the current
budget.

C. Classification of expenditure

30. The institutions consider compulsory expenditure
to be such expenditure as the budgetary authority
is obliged to enter in the budget by virtue of a
legal undertaking entered into under the Treaties
or acts adopted by virtue of the said Treaties.

31. The preliminary draft budget

is to contain a
proposal for the classification of each new budget
item and each item with an amended legal base.

and

the Council will

If they do not accept the classification proposed
in the preliminary draft budget, the European
Parliament
examine
classification of the budget item concerned on the
basis of Annex IV, which forms an integral part
of
this Agreement. Agreement will be sought
during the conciliation procedure provided for in
Annex III.

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D. Maximum rate of increase of non-compulsory
expenditure in the absence of a financial perspective

32. Without prejudice to the first subparagraph of
the institutions agree on the

paragraph 12,
following provisions:

(a) the

European

Parliament’s

autonomous
margin for manoeuvre for the purposes of the
fourth subparagraph of Article 272(9) of the
EC Treaty — which is
the
maximum rate — applies as from the draft
budget established by the Council at
first
reading, including any letters of amendment.

to be half

and/or

The maximum rate is to be observed in
respect of the annual budget, including any
supplementary
amending budgets.
Without prejudice to the setting of a new
rate, any portion of the maximum rate which
has not been utilised will remain available for
use
draft
supplementary and/or amending budgets are
considered;

used when

and may

be

(b) without prejudice to point (a), if it appears in
the course of the budgetary procedure that
completion of the procedure might require
agreement on setting a new rate of increase
for non-compulsory expenditure to apply to
payment appropriations and/or a new rate to
apply to commitment appropriations
(the
latter rate may be at a different level from the
the institutions will endeavour to
former),
secure an agreement between the two arms of
the budgetary authority by the conciliation
procedure provided for in Annex III.

E. Incorporation of financial provisions in legislative
acts

33. Legislative

concerning

acts
adopted under

multiannual
programmes
co-decision
procedure contain a provision in which the
legislative authority lays down the financial
framework for
its entire
duration.

the programme for

the

That amount will constitute the prime reference
for the budgetary authority during the annual
budgetary procedure.

The budgetary authority and the Commission,
when drawing up its preliminary draft budget,
undertake not to depart from this amount unless

new, objective, long-term circumstances arise for
which explicit and precise reasons are given, with
account being taken of the results obtained from
implementing the programme,
in particular on
the basis of assessments.

34. Legislative instruments concerning multiannual
programmes not
co-decision
subject
procedure will not contain an (cid:28)amount deemed
necessary’.

to the

Should the Council wish to include a financial
reference, this will be taken as illustrating the
will of the legislative authority and will not affect
the powers of the budgetary authority as defined
by the Treaty. This provision will be mentioned
in all instruments which include such a financial
reference.

to the

If the amount concerned has been the subject of
conciliation
an agreement pursuant
procedure provided for in the Joint Declaration
the European Parliament, Council and the
of
Commission of 4 March 1975 (9),
it will be
considered a
amount within the
meaning of paragraph 33 of this Agreement.

reference

the Financial Regulation will

35. The financial statement provided for in Article 3
in
of
financial terms the objectives of the proposed
programme and include a schedule covering the
duration of the programme. It will be revised,
where necessary, when the preliminary draft
budget is drawn up, taking account of the extent
of implementation of the programme.

reflect

The revised statement will be forwarded to the
budgetary authority when the preliminary draft
budget
is
adopted.

is presented and after

the budget

F. Legal bases

36. Under the system of the Treaty, implementation
of appropriations entered in the budget for any
Community action requires the prior adoption of
a basic act.

A (cid:28)basic act’ is an act of secondary legislation
which provides a legal basis for the Community
action and for
the
corresponding expenditure entered in the budget.
Such an act must take the form of a Regulation,
a Directive or a Decision (Entscheidung or

implementation of

the

(9) OJ C 89, 22.4.1975, p. 1.

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Beschluß). Recommendations and opinions do
not constitute basic acts, nor do resolutions or
declarations.

37. However,

the following may be implemented
without a basic act as long as the actions which
they are intended to finance fall within the
competence of the Community:

(a) (i) appropriations for pilot schemes of an
experimental nature aimed at testing the
feasibility of an action and its usefulness.
The relevant commitment appropriations
may be entered in the budget for only two
financial years. Their total amount may
not exceed EUR 32 million;

(ii) appropriations

adoption of

view to the

appropriations may

to preparatory
relating
actions intended to prepare proposals with
a
future
Community
preparatory
actions. The
actions are to follow a coherent approach
and may take various forms. The relevant
commitment
be
entered in the budget
for only three
financial years at most. The legislative
procedure should be concluded before the
end of the third financial year. During the
course of
the
commitment
appropriations must
correspond to the particular features of
the
the preparatory action as
activities envisaged, the aims pursued and
the persons benefited.

the legislative procedure,

regards

of

Consequently,
implemented
the means
cannot correspond in volume to those
envisaged for
financing the definitive
action itself. The total amount of the new
headings concerned may not exceed EUR
30 million per financial year and the total
amount of
the appropriations actually
committed in respect of the preparatory
actions may not exceed EUR 75 million.

the

draft

preliminary

budget
is
When
submit a
the Commission will
presented,
report on the actions referred to in points (i)
and (ii) which will also cover the objective of
the action, an assessment of results and the
follow-up envisaged;

(b) appropriations

a
concerning
specific, or even indefinite, nature carried out

actions

of

right of

by the Commission by virtue of
tasks
resulting from its prerogatives at institutional
legislative
level, other
than its
initiative as referred to in point
(a), and
specific powers directly conferred upon it by
the EC Treaty. A list is contained in Annex V,
which forms
this
Agreement. The list may be supplemented, in
the presentation of
the preliminary draft
budget, with an indication of the Articles in
question and the amounts concerned;

an integral part of

(c) appropriations intended for the operation of
administrative

its

each institution under
autonomy.

G. Expenditure relating to fisheries agreements

38. The institutions agree to finance expenditure on
fisheries agreements
in accordance with the
arrangements set out in Annex VI, which forms
an integral part of this Agreement.

H. Financing of the common foreign and security
policy (CFSP)

of

the European Communities

39. For the CFSP expenditure charged to the general
in
budget
accordance with Article 28 of
the Treaty on
European Union, the institutions will endeavour,
in the conciliation procedure provided for in
Annex III and on the basis of the preliminary
draft budget established by the Commission, to
secure each year agreement on the amount of the
operational expenditure to be charged to the
Community budget and on the distribution of
this amount between the articles of the CFSP
budget
fourth
suggested
subparagraph of this paragraph. In the absence of
agreement,
it is understood that the European
Parliament and the Council will enter in the
the amount contained in the previous
budget
budget
the
amount
or
preliminary draft budget, whichever is the lower.

proposed

chapter

the

the

in

in

of

total

amount

The
operational CFSP
expenditure will be entered entirely in one budget
chapter
(CFSP) and distributed between the
articles of this chapter as suggested in the fourth
subparagraph of this paragraph. This amount is
to cover
real predictable needs and a
reasonable margin for unforeseen actions. No
funds will be entered in a reserve. Each article

the

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Official Journal of the European Communities

C 172/9

covers common strategies or joint actions already
adopted, measures which are foreseen but not yet
adopted and all
future — i.e. unforeseen —
action to be adopted by the Council during the
financial year concerned.

the

chapter,

a CFSP action,

the Financial Regulation,

Since, under
the
Commission has
authority, within the
to transfer
framework of
appropriations autonomously between articles
within one budget
the CFSP
allocation, the flexibility deemed necessary for
speedy implementation of CFSP actions will
the
accordingly be assured.
amount of the CFSP budget during the financial
year being insufficient
to cover the necessary
expenses,
the European Parliament and the
Council will seek a solution as a matter of
urgency, on a proposal from the Commission.

In the event of

i.e.

Within the CFSP budget chapter, the articles into
which the CFSP actions are to be entered could
read along the following lines:

— observation and organisation of elections/
transition

democratic

in

participation
processes,

— Union envoys,

— contributions to international conferences,

— urgent actions.

The European Parliament, the Council and the
Commission agree that the amount for actions
entered under the article mentioned in the sixth
the overall
indent may not exceed 20 % of
amount of the CFSP budget chapter.

40. Once a year, the Council Presidency will consult
the European Parliament on a Council document
setting out the main aspects and basic choices of
the CFSP, including the financial implications for
the general budget of the European Communities.
Furthermore, the Presidency will regularly inform
the European Parliament about the development
and implementation of CFSP actions.

Whenever it adopts a decision in the field of
CFSP entailing expenditure,
the Council will
immediately and in each case send the European
Parliament an estimate of the costs envisaged
((cid:28)financial
those
particular
staff employed, use of
regarding time-frame,
transport
and other
premises
infrastructure,
facilities,
and security
training
arrangements.

requirements

statement’),

in

— prevention of conflicts/peace and security

processes,

— financial assistance to disarmament processes,

Once a quarter the Commission will inform the
budgetary authority about the implementation of
CFSP actions and the financial forecasts for the
remaining period of the year

C 172/10

EN

Official Journal of the European Communities

18.6.1999

Hecho en Estrasburgo, el seis de mayo de mil novecientos noventa y nueve.

Udfærdiget i Strasbourg den sjette maj nitten hundrede og nioghalvfems.

Geschehen zu Straßburg am sechsten Mai neunzehnhundertneunundneunzig.

Łcime rso Rsqarbot(cid:228) qco, rsiy e(cid:228) ni La(cid:240)ot vi(cid:228)kia emmiajo(cid:228) ria ememg(cid:228) msa emme(cid:228) a.

Done at Strasbourg on the sixth day of May in the year one thousand nine hundred and
ninety-nine.

Fait a` Strasbourg, le six mai mil neuf cent quatre-vingt-dix-neuf.

Fatto a Strasburgo, add(cid:236) sei maggio millenovecentonovantanove.

Gedaan te Straatsburg, de zesde mei negentienhonderd negenennegentig.

Feito em Estrasburgo, em seis de Maio de mil novecentos e noventa e nove.

Tehty Strasbourgissa kuudentena p(cid:228)iv(cid:228)n(cid:228) toukokuuta vuonna tuhatyhdeks(cid:228)nsataayhdek-
s(cid:228)nkymment(cid:228)yhdeks(cid:228)n.

Som skedde i Strasbourg den sj(cid:228)tte maj nittonhundranittionio.

Por el Consejo de la Uni(cid:243)n Europea

For R(cid:229)det for Den Europæiske Union

F(cid:252)r den Rat der Europ(cid:228)ischen Union

Cia so Rtlbot(cid:228) kio sgy Etqxpałjg(cid:228) y Łmxrgy

For the Council of the European Union

Pour le Conseil de l’Union europe´enne

Per il Consiglio dell’Unione europea

Voor de Raad van de Europese Unie

Pelo Conselho da Unia˜ o Europeia

Euroopan unionin neuvoston puolesta

F(cid:246)r Europeiska unionens r(cid:229)d

18.6.1999

EN

Official Journal of the European Communities

C 172/11

Por la Comisi(cid:243)n Europea

For Europa-Kommissionen

F(cid:252)r die Europ(cid:228)ische Kommission

Cia sgm Etqxpałjg(cid:228) Episqopg(cid:228)

For the European Commission

Pour la Commission europe´enne

Per la Commissione europea

Voor de Europese Commissie

Pela Comissa˜ o Europeia

Euroopan komission puolesta

F(cid:246)r Europeiska kommissionen

Por el Parlamento Europeo

For Europa-Parlamentet

F(cid:252)r das Europ(cid:228)ische Parlament

Cia so Etqxpałjo(cid:228) Joimobot(cid:228) kio

For the European Parliament

Pour le Parlement europe´en

Per il Parlamento europeo

Voor het Europees Parlement

Pelo Parlamento Europeu

Euroopan parlamentin puolesta

F(cid:246)r Europaparlamentet

ANNEX I

FINANCIAL PERSPECTIVE (EU-15)

Commitment appropriations

2000

2001

2002

2003

2004

2005

2006

(EUR million — 1999 prices)

1. AGRICULTURE

Common agricultural policy (not including rural development)

Rural development and accompanying measures

2. STRUCTURAL OPERATIONS

Structural Funds

Cohesion Fund

40 920

36 620

4 300

32 045

29 430

2 615

42 800

38 480

4 320

31 455

28 840

2 615

43 900

39 570

4 330

30 865

28 250

2 615

43 770

39 430

4 340

30 285

27 670

2 615

42 760

38 410

4 350

29 595

27 080

2 515

41 930

37 570

4 360

29 595

27 080

2 515

41 660

37 290

4 370

29 170

26 660

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

4 560

4 570

4 580

4 590

4 600

4 610

5. ADMINISTRATION (2)

4 560

4 600

4 700

4 800

4 900

5 000

5 100

6. RESERVES

Monetary reserve

Emergency aid reserve

Loan guarantee reserve

7. PRE-ACCESSION AID

Agriculture

Pre-accession structural instruments

PHARE (applicant countries)

900

500

200

200

3 120

520

1 040

1 560

900

500

200

200

3 120

520

1 040

1 560

650

250

200

200

3 120

520

1 040

1 560

400

0

200

200

3 120

520

1 040

1 560

400

0

200

200

3 120

520

1 040

1 560

400

0

200

200

3 120

520

1 040

1 560

400

0

200

200

3 120

520

1 040

1 560

TOTAL COMMITMENT APPROPRIATIONS

92 025

93 475

93 955

93 215

91 735

91 125

90 660

C
1
7
2
/
1
2

E
N

O

f
f
i
c
i
a
l

J
o
u
r
n
a
l

o
f

t
h
e

E
u
r
o
p
e
a
n
C
o
m
m
u
n
i
t
i
e
s

1
8
.
6
.
1
9
9
9

Commitment appropriations

2000

2001

2002

2003

2004

2005

2006

TOTAL PAYMENT APPROPRIATIONS
Payment appropriations as % of GNP

89 600
1,13 %

91 110
1,12 %

AVAILABLE FOR ACCESSION (payment appropriations)

Agriculture
Other expenditure

94 220
1,13 %

4 140

1 600
2 540

94 880
1,11 %

6 710

2 030
4 680

91 910
1,05 %

8 890

2 450
6 440

90 160
1,00 %

11 440

2 930
8 510

89 620
0,97 %

14 220

3 400
10 820

CEILING ON PAYMENT APPROPRIATIONS

89 600

91 110

98 360

101 590

100 800

101 600

103 840

Ceiling on payment appropriations as % of GNP

Margin for unforeseen expenditure

Own resources ceiling

1,13 %

0,14 %

1,27 %

1,12 %

0,15 %

1,27 %

1,18 %

0,09 %

1,27 %

1,19 %

0,08 %

1,27 %

1,15 %

0,12 %

1,27 %

1,13 %

0,14 %

1,27 %

1,13 %

0,14 %

1,27 %

(1) In accordance with Article 2 of Decision No 182/1999/EC of the European Parliament and of the Council and Council Decision 1999/64/Euratom (OJ L 26, 1.2.1999, p. 1 and p. 34), the amount of

expenditure available during the period 2000 to 2002 for research amounts to EUR 11 510 million at current prices.

(2) The expenditure on pensions included under the ceilings for this heading is calculated net of staff contributions to the relevant scheme, within the limit of EUR 1 100 million at 1999 prices for the period

2000 to 2006.

1
8
.
6
.
1
9
9
9

E
N

O

f
f
i
c
i
a
l

J
o
u
r
n
a
l

o
f

t
h
e

E
u
r
o
p
e
a
n
C
o
m
m
u
n
i
t
i
e
s

C
1
7
2
/
1
3

ANNEX II

FINANCIAL FRAMEWORK (EU-21)

Commitment appropriations

2000

2001

2002

2003

2004

2005

2006

(EUR million — 1999 prices)

1. AGRICULTURE

Common agricultural policy (not including rural development)

Rural development and accompanying measures

2. STRUCTURAL OPERATIONS

Structural Funds

Cohesion Fund

40 920

36 620

4 300

32 045

29 430

2 615

42 800

38 480

4 320

31 455

28 840

2 615

43 900

39 570

4 330

30 865

28 250

2 615

43 770

39 430

4 340

30 285

27 670

2 615

42 760

38 410

4 350

29 595

27 080

2 515

41 930

37 570

4 360

29 595

27 080

2 515

41 660

37 290

4 370

29 170

26 660

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

4 560

4 570

4 580

4 590

4 600

4 610

5. ADMINISTRATION (2)

4 560

4 600

4 700

4 800

4 900

5 000

5 100

6. RESERVES

Monetary reserve

Emergency aid reserve

Loan guarantee reserve

7. PRE-ACCESSION AID

Agriculture

Pre-accession structural instruments

PHARE (applicant countries)

900

500

200

200

3 120

520

1 040

1 560

900

500

200

200

3 120

520

1 040

1 560

650

250

200

200

3 120

520

1 040

1 560

400

0

200

200

3 120

520

1 040

1 560

400

0

200

200

3 120

520

1 040

1 560

400

0

200

200

3 120

520

1 040

1 560

400

0

200

200

3 120

520

1 040

1 560

C
1
7
2
/
1
4

E
N

O

f
f
i
c
i
a
l

J
o
u
r
n
a
l

o
f

t
h
e

E
u
r
o
p
e
a
n
C
o
m
m
u
n
i
t
i
e
s

1
8
.
6
.
1
9
9
9

Commitment appropriations

2000

2001

2002

2003

2004

2005

2006

8. ENLARGEMENT

Agriculture

Structural operations

Internal policies
Administration

6 450
1 600

3 750

730
370

9 030
2 030

5 830

760
410

11 610
2 450

7 920

790
450

14 200
2 930

10 000

820
450

16 780
3 400

12 080

850
450

TOTAL COMMITMENT APPROPRIATIONS

92 025

93 475

100 405

102 245

103 345

105 325

107 440

TOTAL PAYMENT APPROPRIATIONS

89 600

91 110

Of which: enlargement

98 360

4 140

101 590

6 710

100 800

8 890

101 600

11 440

103 840

14 220

Payment appropriations as % of GNP

1,13 %

1,12 %

1,14 %

1,15 %

1,11 %

1,09 %

1,09 %

Margin for unforeseen expenditure

Own resources ceiling

0,14 %

1,27 %

0,15 %

1,27 %

0,13 %

1,27 %

0,12 %

1,27 %

0,16 %

1,27 %

0,18 %

1,27 %

0,18 %

1,27 %

(1) In accordance with Article 2 of Decision No 182/1999/EC of the European Parliament and of the Council and Council Decision 1999/64/Euratom (OJ L 26, 1.2.1999, p. 1 and p. 34), the amount of

expenditure available during the period 2000 to 2002 for research amounts to EUR 11 510 million at current prices.

(2) The expenditure on pensions included under the ceilings for this heading is calculated net of staff contributions to the relevant scheme, within the limit of EUR 1 100 million at 1999 prices for the period

2000 to 2006.

1
8
.
6
.
1
9
9
9

E
N

O

f
f
i
c
i
a
l

J
o
u
r
n
a
l

o
f

t
h
e

E
u
r
o
p
e
a
n
C
o
m
m
u
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i
t
i
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s

C
1
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1
5

C 172/16

EN

Official Journal of the European Communities

18.6.1999

ANNEX III

INTERINSTITUTIONAL COLLABORATION IN THE BUDGETARY SECTOR

A. After the technical adjustment of the financial perspective for the forthcoming financial year and
prior to the Commission’s decision on the preliminary draft budget, a meeting of the trialogue will
be convened to discuss the possible priorities for the budget of that year, with due account being
taken of the institutions’ powers.

B. 1. A conciliation procedure is set up for all expenditure.

2. As regards compulsory expenditure, the Commission,

in presenting its preliminary draft

budget, will identify:

(a) appropriations connected with new or planned legislation;

(b) appropriations arising from the application of legislation existing when the previous

budget was adopted.

The Commission will make a careful estimate of the financial implications of the Community’s
obligations based on the rules. If necessary it will update its estimates in the course of the
budgetary procedure. It will supply the budgetary authority with all the duly justified reasons
it may require.

If it considers it necessary, the Commission may present to the budgetary authority an ad hoc
letter of amendment to update the figures underlying the estimate of agricultural expenditure
in the preliminary draft budget and/or to correct, on the basis of the most recent information
available concerning fisheries agreements in force on 1 January of
the financial year
concerned, the breakdown between the appropriations entered in the operational items for
international fisheries agreements and those entered in reserve.

This letter of amendment must be sent to the budgetary authority before the end of October.

If it is presented to the Council less than a month before the European Parliament’s first
reading, the Council will as a rule consider the ad hoc letter of amendment when giving the
draft budget its second reading.

As a consequence, before the Council’s second reading of the budget, the two arms of the
budgetary authority will try to meet the conditions necessary for the letter of amendment to be
adopted on a single reading by each of the institutions concerned.

3. The purpose of the conciliation procedure is to:

(a) continue discussions on the general trend of expenditure and, in this framework, on the
broad lines of the budget for the coming year in the light of the Commission’s preliminary
draft budget;

(b) secure agreement between the two arms of the budgetary authority on:

— the appropriations referred to in point 2(a) and (b), including those proposed in the ad

hoc letter of amendment referred to at point 2,

— the amounts to be entered in the budget

for non-compulsory expenditure,

in

accordance with the third subparagraph of paragraph 12 of this Agreement,

— and, particularly, matters for which reference to this procedure is made in this

Agreement.

18.6.1999

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Official Journal of the European Communities

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4. The procedure will begin with a trialogue meeting convened in time to allow the institutions
to seek an agreement by no later than the date set by the Council for establishing its draft
budget.

There will be conciliation on the results of this trialogue between the Council and a European
Parliament delegation, with the Commission also taking part.

Unless decided otherwise during the trialogue, the conciliation meeting will be held at the
traditional meeting between the same participants on the date set by the Council
for
establishing the draft budget.

5. A new trialogue meeting will be held before the European Parliament’s first reading to enable
the institutions to identify the programmes on which the conciliation is to focus so as to reach
an agreement on their allocations. At that meeting the institutions will also exchange views on
the state of implementation of the current budget with a view to discussing the omnibus
transfer or a possible supplementary and amending budget.

6. The institutions will continue the conciliation after the first reading of the budget by each of
the two arms of the budgetary authority in order to secure agreement on compulsory and non-
compulsory expenditure and, in particular, to discuss the ad hoc letter of amendment referred
to in point 2.

A trialogue meeting will be held for this purpose after the European Parliament’s first reading.

The results of the trialogue will be discussed at a second conciliation meeting to be held the
day before the Council’s second reading.

If necessary, the institutions will continue their discussions on non-compulsory expenditure
after the Council’s second reading.

7. At these trialogue meetings, the institutions’ delegations will be led by the President of the
Council (Budgets), the Chairman of the European Parliament’s Committee on Budgets and the
Member of the Commission with responsibility for the budget.

8. Each arm of the budgetary authority will take whatever steps are required to ensure that the
results which may be secured in the conciliation process are respected throughout the current
budgetary procedure.

C 172/18

EN

Official Journal of the European Communities

18.6.1999

ANNEX IV

CLASSIFICATION OF EXPENDITURE (1)

Heading 1

— Expenditure of

the common agricultural policy and expenditure on

animal and plant health

— Rural development and accompanying measures

Heading 2

Heading 3

Heading 4

Compulsory

Non-compulsory

Non-compulsory

Non-compulsory

— Expenditure resulting from international agreements which the European
Union or Community has concluded with third parties, including fisheries
agreements

— Contributions to international organisations or institutions

Compulsory

Compulsory

— Other items covered by heading 4 of the financial perspective

Non-compulsory

Heading 5

— Allowances and miscellaneous contributions on termination of service

— Pensions and serverance grants

— Legal expenses

— Damages

— Compensation

Compulsory

Compulsory

Compulsory

Compulsory

Compulsory

— Other items covered by heading 5 of the financial perspective

Non-compulsory

Heading 6

— Monetary reserve

— Loan guarantee reserve

— Emergency aid reserve

Heading 7

Compulsory

Compulsory

Non-compulsory

— Agriculture (rural development measures and accompanying measures)

Non-compulsory

— Pre-accession structural instrument

— PHARE (applicant countries)

Non-compulsory

Non-compulsory

(1) Compulsory expenditure.

Non-compulsory expenditure.

18.6.1999

EN

Official Journal of the European Communities

C 172/19

ANNEX V

List of Articles of the EC and EAEC Treaties which directly confer powers on the Commission which
are specific and likely to have financial implications in Part B (operating appropriations) of Section III
— Commission — of the budget

I. EC TREATY

Article 138

Social dialogue

Article 140

Studies, opinions, consultations on social matters

Articles 143 and 145

Special reports in the social field

Article 152(2)

Initiatives to promote coordination with regard to health protection

Article 155(2)

Initiatives to promote coordination with regard to trans-European networks

Article 157(2)

Initiatives to promote industrial coordination

Article 159, second
paragraph

Report on progress made towards achieving economic and social cohesion

Article 165(2)

Initiatives to promote coordination with regard to technological research and
development

Article 173

Report on technological research and development

Article 180(2)

Inititatives to promote the coordination of development cooperation policies

II. EURATOM TREATY

Chapter 6, Section 5

Supply policy

Article 70

Financial support, within the limits set by the budget,
programmes in the territories of Member States

to prospecting

Chapter 7 Articles 77
et seq.

Safeguards

C 172/20

EN

Official Journal of the European Communities

18.6.1999

ANNEX VI

FINANCING OF EXPENDITURE DERIVING FROM FISHERIES AGREEMENTS

A. Expenditure relating to fisheries agreements is financed by two items (by reference to the 1998

budget nomenclature):

(a) international fisheries agreements (B7-8 0 0 0);

(b) contributions to international organisations (B7-8 0 0 1).

All the amounts relating to agreements and protocols which will be in force on 1 January of the
year in question will be entered under heading B7-8 0 0 0. Amounts relating to all new or
renewable agreements which will come into force after 1 January of the year in question will be
assigned to heading B7-8 0 0 0 but entered in the reserve B0-4 0.

B.

In the conciliation procedure provided for in Annex III, the European Parliament and the Council
will seek to agree on the amount to be entered in the budget headings and in the reserve on the
basis of the proposal made by the Commission.

C. The Commission undertakes to keep the European Parliament regularly informed about the

preparation and conduct of the negotiations, including the budgetary implications.

In the course of the legislative process relating to fisheries agreements, the institutions undertake to
make every effort to ensure that all procedures are carried out as quickly as possible.

If appropriations relating to fisheries agreements (including the reserve) prove insufficient, the
Commission will provide the budgetary authority with the necessary information for an exchange
of views in the form of a trialogue, possibly simplified, on the causes of the situation, and on the
measures which might be adopted under established procedures. Where necessary, the Commission
will propose appropriate measures.

Each quarter the Commission will present to the budgetary authority detailed information about
the implementation of agreements in force and financial forecasts for the remainder of the year.

18.6.1999

EN

Official Journal of the European Communities

C 172/21

DECLARATIONS

Declaration on the adjustment of Structural Fund allocations in the light of the circumstances of their
implementation

The institutions agree that, in the event of any significant delay in the adoption of the new rules
governing the Structural Funds, the possibility of re-entering appropriations in the budget could be
extended to those not used in the first two years of the financial perspective.

Declaration on the conciliation procedure applicable to legislative acts with significant financial
implications

The institutions confirm that the Joint Declaration of the European Parliament, the Council and the
Commission of 4 March 1975 concerning the institution of a conciliation procedure remains fully
applicable.

Declaration on the principles and mechanisms of the agricultural guideline

In accordance with the decision on budgetary discipline, the institutions confirm the principles and
mechanisms of the agricultural guideline.

Declaration on the URBAN initiative

In view of the reduction in the amount provided for innovatory measures, relating to the URBAN
initiative,
they will examine the possibility of allocating up to
EUR 200 million for this purpose, by mobilising the flexibility instrument during the period 2000 to
2006.

the institutions agree that

Declaration of the European Parliament and the Council on the Balkan situation

In view of developments in the Balkan situation, particularly in Kosovo, the two arms of the
budgetary authority request the Commission, when needs have been ascertained and estimated, to
submit the necessary budget proposals,
if appropriate, a proposal for revision of the
financial perspective.

including,

C 172/22

EN

Official Journal of the European Communities

18.6.1999

Commission Declaration on paragraph 6 of the Agreement

In the case of paragraph 6 of the Agreement, the Commission states that it will take account of any
request by one of the two arms of the budgetary authority when examining the need to present the
report referred to in that paragraph.

Commission Declaration on paragraph 37(a)(ii) of the Agreement

The Commission declares that it reserves the right to propose that the ceiling of EUR 30 million be
exceeded in the event of exceptional external circumstances.

Declaration by the European Parliament on Annex VI to the Agreement

The European Parliament considers that, as far as possible, fisheries agreements will leave six months
between the initialling of the agreement and payment of the first financial compensation so as to allow
the European Parliament time to deliver its opinion.

Council Declaration on point 6 of Annex III

The Council states that the conciliation meeting with Parliament need not automatically and in every
case be held the day before the Council meeting but that there may be objective grounds for holding
the conciliation meeting on the morning of the Council meeting.