European Parliament resolution on the proposal for a decision of the European Parliament and of the Council concerning the revision of the financial perspective annexed to the Interinstitutional Agreement of 6 May 1999 on budgetary discipline and improvement of the budgetary procedure (SEC(1999) 1647 - C5-0322/1999) and on the proposal for a decision of the European Parliament and of the Council concerning the mobilisation of the flexibility instrument (paragraph 24 of the Interinstitutional Agreement of 6 May 1999 on budgetary discipline and improvement of the budgetary procedure) (SEC(1999) 1647 - C5-0314/1999)
Date: 1999-12-16
Institutions: European Parliament
Subjects: interinstitutional agreement, interinstitutional relations (EU), revision of financial perspectives

C 296/192

Official Journal of the European Communities

EN

18.10.2000

Thursday 16 December 1999

In this context calls on the Chinese National People’s Congress to ratify the UN Covenant on Civil

9.
and Political Rights signed by China in 1998;

Urges the Commission to find ways to strengthen and consolidate Macao civil society and to pro-

10.
mote and further develop the multiparty system and democratic institutions;

11.
Urges all the Member States to exempt passport holders of the Macao SAR from visa requirements,
since this would make a significant contribution to the preservation of Macao’s way of life and would
strengthen and facilitate economic and other contacts, as well as testifying to the Union’s confidence in
Macao’s future;

12.
Expresses its commitment to regularly monitoring developments in Macao after 20 December
1999, on the basis of close exchange of information and interinstitutional cooperation, analysing and
debating the regular reports to be submitted and evaluating developments in the area of rights, freedoms
and guarantees and all aspects of current circumstances related to Macao, in the context of the changing
shape of international relations as regards the Far East and the new prospects being opened up in that
region in all the abovementioned spheres, and also any new circumstances that may arise from China’s
entry into the WTO and the qualitative evolution and/or alteration of its relations with the US;

13.
Urges the members of its delegation for relations with the People’s Republic of China, in particular,
to be aware of the issues raised in the foregoing paragraphs at all times when carrying out their duties, and
to ensure, whenever appropriate and necessary, that assessment and monitoring of these issues form part
of the agenda of the relevant interparliamentary meetings;

Is convinced that it is necessary to set up its own contact and interrelationship group, with a view

14.
to the permanent monitoring of developments in Macao;

Instructs its President to forward this resolution to the Council, the Commission, the governments
15.
of the Member States, the Government of the People’s Republic of China and the Government of the
Special Administrative Region of Macao.

7. Revision of the financial perspective

A5-0103/1999

European Parliament resolution on the proposal for a decision of the European Parliament and of
the Council concerning the revision of the financial perspective annexed to the Interinstitutional
Agreement of 6 May 1999 on budgetary discipline and improvement of the budgetary procedure
(SEC(1999) 1647 + C5-0322/1999) and on the proposal for a decision of the European Parliament
and of the Council concerning the mobilisation of the flexibility instrument (paragraph 24 of the
Interinstitutional Agreement of 6 May 1999 on budgetary discipline and improvement of the bud-
getary procedure) (SEC(1999) 1647 + C5-0314/1999)

The European Parliament,

7 having regard to the Interinstitutional Agreement of 6 May 1999 on budgetary discipline and

improvement of the budgetary procedure (1),

7 having regard to the proposals from the Commission to the budgetary authority (SEC(1999) 1647 7

C5-0322/1999 and C5-0314/1999),

7 having regard to the outcome of the Trialogue of 18 November 1999,

7 having regard to the results of the conciliation meeting of 25 November 1999 with the Council,

7 having regard to the deliberations of the extraordinary meeting of the Committee on Budgets of

1 December 1999,

7 having regard to the report of the Committee on Budgets (A5-0103/1999),

(1) OJ C 172, 18.6.1999, p. 1.

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C 296/193

Thursday 16 December 1999

Stresses that the credibility and usefulness of the Interinstitutional Agreement of 6 May 1999 will be

1.
put to the test if the Institutions attempt to interpret it unilaterally;

2. Welcomes the agreement reached between the Institutions concerning mobilisation of € 200 million
under the flexibility instrument in order to cover a Community contribution to Kosovo reconstruction
requirements for 2000, which could not be met within the ceiling of heading 4 of the financial perspec-
tive;

Notes that the budgetary authority’s decision goes far beyond the proposals submitted by the Com-
3.
mission to raise the ceiling of heading 4 of the financial perspective; calls on the Commission to exhibit
greater realism in future in implementing the Interinstitutional Agreement;

4.
Awaits, with great interest, the precise multiannual assessment of Kosovo reconstruction require-
ments, to be submitted by the Commission, and the programme of assistance for the Western Balkans
which it has undertaken to submit by April 2000; considers that the resulting proposal for revision of
the financial perspective should be submitted by the same deadline;

Notes, with satisfaction, the Institutions’ undertaking to reach agreement on these proposals, includ-
5.
ing on a possible revision of the financial perspective, prior to the Council’s vote on the 2001 draft bud-
get;

6.
Approves the decision to mobilise the flexibility instrument provided for in paragraph 24 of the
Interinstitutional Agreement and the declarations attached thereto, particularly as regards revision of the
financial perspective, the texts of which are attached;

Instructs its President to forward its position, including the annex, to the Council and the Commi-

7.
ssion.

Decision of the European Parliament and of the Council of 16 December 1999 to use the flexibil-
ity instrument for the financing of the reconstruction of Kosovo

ANNEX

THE EUROPEAN PARLIAMENT,

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

[…]

Having regard to the Interinstitutional Agreement of 6 May 1999 between the European Parliament, the
Council and the Commission, on budgetary discipline and improvement of the budgetary procedure (1),
and in particular paragraph 24 thereof,

Having regard to the proposal for mobilisation of the flexibility instrument submitted by the Commission
on 10 November 1999,

Whereas:

1.
At the conciliation meeting held on 25 November 1999 in the presence of Commission representa-
tives, the European Parliament and the Council were obliged to note that the Commission was not yet in a
position to submit a year-by-year evaluation of the needs for Kosovo and the needs of the Balkans in
general beyond the year 2000. They again called on the Commission to submit a precise multiannual
evaluation of these needs for the whole of the period concerned, together with the necessary proposals
for funding, including, if necessary, a proposal for revision of the financial perspective. These proposals
would be made before submission of the preliminary draft budget for the financial year 2001 so as to
enable the institutions to reach agreement before the Council’s vote on the draft budget for 2001;

(1) OJ C 172, 18.6.1999, p. 1.

C 296/194

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18.10.2000

Thursday 16 December 1999

2.
In the meantime, the European Parliament and the Council set the amount of resources needing to be
made available for the reconstruction of Kosovo at a maximum of € 360 million in commitment appro-
priations for the financial year 2000;

In order to help cover this need, the Commission considered that it would be possible to carry over
3.
from the 1999 budget commitment appropriations of € 30 million from Obnova and € 30 million from
humanitarian aid. The European Parliament and the Council therefore agreed to enter € 300 million in
commitment appropriations in the general budget of the European Communities for the financial year
2000 for the reconstruction of Kosovo, of which € 40 million would be made available through redeploy-
ment (transfers of appropriations) under heading 4;

4.
In order to finance this additional need, which arose after the submission of the preliminary draft
budget for the financial year 2000, the Commission first examined all possibilities for reallocating appro-
priations under heading 4 of the financial perspective, in accordance with paragraph 24, fourth subpara-
graph, of the Interinstitutional Agreement of 6 May 1999;

5.
The Commission indicated that € 60 million in commitment appropriations proposed for Obnova in
the preliminary draft budget for 2000 and € 20 million requested for humanitarian aid could be used for
Kosovo. The European Parliament and the Council agreed to this solution and noted that as a result
€ 220 million in commitment appropriations remained to be funded;

6.
In addition, the Commission identified possible redeployment under heading 4 of the financial per-
spective, amounting to € 180 million in commitment appropriations. With the aim in particular of easing
the burden on the poorer countries and enabling the Union to finance its traditional priorities, the Euro-
pean Parliament and the Council have agreed to restrict these redeployments under heading 4 of the
financial perspective to € 150 million in commitment appropriations, as opposed to Parliament’s first read-
ing;

After examining all possibilities for reallocating appropriations under heading 4 of the financial per-
7.
spective, the Commission proposed inter alia that the flexibility instrument should be used for a sum of
€ 60 million;

8.
The European Parliament and the Council noted that the balance of the needs could not be financed
by means of redeployment. Nevertheless, they noted that, in the absence of a precise evaluation of the
needs for each year of the period concerned, at this stage the problem arose only for the financial year
2000 and concerned a limited amount;

9.
The European Parliament and the Council, noting that the conditions laid down in paragraph 24 of
the Interinstitutional Agreement had been met, therefore decided by common agreement, in accordance
with the voting rules laid down in Article 272(9), fifth subparagraph, of the Treaty establishing the Euro-
pean Community, to use the flexibility instrument to finance the balance of the needs created by the
reconstruction of Kosovo which cannot be met by carrying over appropriations from the 1999 budget
or by redeployment of appropriations entered in the draft budget for the financial year 2000.

HEREBY DECIDE THAT:

Article 1

Use will be made by common agreement of the flexibility instrument provided for in paragraph 24 of the
Interinstitutional Agreement of 6 May 1999 on budgetary discipline and improvement of the budgetary
procedure for a sum of € 200 million.

Article 2

This sum is intended to cover part of the commitment appropriations entered against budget line B7-546
‘Aid for the reconstruction of Kosovo’ of the general budget of the European Communities for the financial
year 2000.

Article 3

This decision shall be published in the Official Journal of the European Communities at the same time as
the budget for the financial year 2000.

Done at Brussels, 16 December 1999

For the European Parliament
The President

For the Council
The President

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Official Journal of the European Communities

C 296/195

Declarations

Thursday 16 December 1999

1.
The Commission confirms that by April 2000 it will propose an aid programme for the western
Balkans, including Kosovo for the period 2000-2006. The amount concerned will require it to submit a
proposal for revision of the financial perspective, together with a programming plan for heading 4.

2.
The European Parliament and the Council agree that an aid programme for the western Balkans must
be established. They take note of the fact that, if a sum requiring a financial effort significantly greater than
that already programmed were to be agreed, this would entail exceeding the current ceilings for heading 4
of the financial perspective.

3.
The European Parliament undertakes to leave a margin of € 20 million under the ceilings for
heading 4 and, if necessary, by means of redeployment, to enter an amount of € 40 million for the recon-
struction of Kosovo in particular, before the Council’s first reading of the draft budget for 2001, this to be
done by means of transfers of appropriations. The European Parliament undertakes also to reduce payment
appropriations compared to its first reading by € 2 billion.

8. 2000 budget

A5-0095/1999

European Parliament resolution on the draft general budget of the European Union for the finan-
cial year 2000, as modified by the Council (all sections) (C5-0600/1999), and on Letters of Amend-
ment Nos 1/2000 (11568/1999 + C5-0313/1999), 2/2000 (13482/1999 + C5-0311/1999) and 3/2000
(…/1999 + C5-…/1999) to the 2000 draft budget

The European Parliament,

7 having regard to Article 272 of the EC Treaty, Article 177 of the Euratom Treaty and Article 78 of the

ECSC Treaty,

7 having regard to the Council decisions of 26 November 1999 on the draft budget for 2000 as

amended and modified by Parliament at first reading (13476/1999 7 C5-0600/1999),

7 having regard to the Council Decision of 31 October 1994 (1) on the system of the European Com-

munities’ own resources,

7 having regard to its resolutions of 23 March 1999 on the guidelines for the 2000 budget (2),

7 having regard to the preliminary draft budget submitted by the Commission for the financial year

2000 (COM(1999) 200),

7 having regard to the draft budget established by the Council for the financial year 2000 (C5-0300/

1999),

7 having regard to Letter of Amendment No 1 to the draft budget for 2000 (11568/1999 7 C5-0313/

1999),

7 having regard to Letter of Amendment No 2 to the draft budget for 2000 (13482/1999 7 C5-0311/

1999),

7 having regard to Letter of Amendment No 5 to the preliminary draft budget for 2000 (…/1999 7

C5-…/1999),

7 having regard to Letter of Amendment No 3 to the draft budget for 2000 (…/1999 7 C5-…/1999),

7 having regard to its resolutions of 28 October 1999 on the draft budget for 2000 (3),

7 having regard to the Interinstitutional Agreement of 6 May 1999 between the European Parliament,
the Council and the Commission on budgetary discipline and improvement of the budgetary pro-
cedure (4),

(1) OJ L 293, 12.11.1994.
(2) OJ C 177, 22.6.1999, pp. 40 and 44.
(3)
(4) OJ C 172, 18.6.1999, p. 1.

‘Texts adopted’ of that sitting, Items 1 and 2.