European Parliament Resolution on the draft general budget of the European Union for the financial year 2000, as modified by the Council (all sections) (C5-0600/1999), and on Letters of Amendment Nos 1/2000 (11568/1999 - 5-0313/1999), 2/2000 (13482/1999 - C5-0311/1999) and 3/2000 (_/1999 - C5-_/1999) to the 2000 draft budget
Date: 1999-12-16
Institutions: Committee on Budgets, European Parliament
Subjects: European official, Kosovo, administrative reform, budgetary procedure, draft budget (EU), interinstitutional relations (EU), personnel administration, revision of financial perspectives

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Official Journal of the European Communities

14.2.2000

EUROPEAN PARLIAMENT

European Parliament Resolution on the draft general budget of the European Union for the
financial year 2000, as modified by the Council (all sections) (C5-0600/1999), and on Letters of
Amendment 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

A5-0095/1999

(2000/C 41/02)

The European Parliament

— having regard to Letter of Amendment No 3 to the draft

budget for 2000 (.../1999 — C5-.../1999),

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

— 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 —
C5-0600/1999),

— having regard to the Council Decision of 31 October
1994 (1) on the system of the European Communities’ own
resources,

— having regard to its resolutions of 23 March 1999 on the

guidelines for the 2000 budget (2),

— having regard to the preliminary draft budget submitted by
the Commission for the financial year 2000 [COM(1999)
200],

— having regard to the draft budget established by the
Council for the financial year 2000 (C5-0300/1999),

— having regard to Letter of Amendment No 1 to the draft

budget for 2000 (11568/1999 — C5-0313/1999),

— having regard to Letter of Amendment No 2 to the draft

budget for 2000 (13482/1999 — C5-0311/1999),

— having regard to Letter of Amendment No 5 to the
for 2000 (.../1999 — C5-

preliminary draft budget
.../1999),

— having regard to its resolutions of 28 October 1999 on

the draft budget for 2000 (3),

— 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 (4),

— having regard to the Commission proposal for a European
Parliament and Council decision revising the financial
perspective annexed to the Interinstitutional Agreement of
6 May 1999 on budgetary discipline and improvement of
the budgetary procedure
(1999/0211 ACI — C5-
0322/1999),

— having regard to the report of the Committee on Budgets
and the opinion of the Committee on Agriculture and
Rural Development on Letter of Amendment No 4/2000
to the preliminary draft budget for the financial year 2000
(A5-0095/1999),

A. whereas it is determined to ensure that the 2000 budget
provides funding for the new priorities set for the Union
in the field of external action,
in accordance with the
Interinstitutional Agreement of 6 May 1999, with particu-
lar regard to paragraph 19 thereof, and the declaration
annexed to that Agreement, which explicitly provide for a
revision of the financial perspective to take account of
reconstruction work in Kosovo, once the needs have been
ascertained and estimated,

(1) OJ L 293, 12.11.1994.
(2) OJ C 177, 22.6.1999, pp. 40 and 44.

(3) ‘Texts adopted’ of that sitting, Items 1 and 2.
(4) OJ C 172, 18.6.1999, p. 1.

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B. whereas Parliament is seeking to achieve two goals in
connection with the funding of reconstruction work in
Kosovo, namely:

— initiating a revision of the financial perspective if
estimated requirements for Kosovo and the Balkans are
significantly higher than the amounts earmarked under
existing programmes,

— to determine a reasonable amount to enter in the 2000
budget as part of a long-term effort, on the basis of
an accurate, realistic and multiannual estimate of
requirements and the share of the overall effort which
should be borne by the EU,

— to agree with the Council to raise the ceilings in
heading 4 by means of a multiannual revision of the
financial perspective, with a view to funding new
requirements in Kosovo and the Balkans, on the
understanding that the funding of such new responsi-
bilities must not be detrimental to the Union’s tra-
ditional priorities,

C. whereas the proposal

for a revision of

the financial
perspective submitted by the Commission would entail the
ceiling for heading 4 being exceeded in the 2000 financial
year alone,

D. whereas the appropriations which the Commission is
proposing be earmarked for reconstruction in Kosovo
are not based on an accurate, reliable assessment of
requirements, nor are the estimates for the medium-term
requirements in the Balkans as a whole; whereas, however,
the Commission will apparently be able to provide more
trustworthy estimates at the end of the first quarter of
2000,

E. whereas the Council has failed to take a firm stand on a
clear, quantified and multiannual budgetary commitment
on Kosovo and the Balkans,

F. whereas, however, it is the responsibility of the two arms
of the budgetary authority to agree on the granting of the
necessary funds for reconstruction work in Kosovo for
the 2000 financial year pending a realistic multiannual
assessment of funding requirements for Kosovo and the
Balkans as a whole;

G. Whereas the proposal

for a decision adopted by the
Council at its meeting of 15 December 1999, after the
vote on amendments at second reading by the Committee
on Budgets, seeks to provide funding for expenditure in
respect of Kosovo in excess of the ceiling for heading 4:

— by making use of the flexibility instrument provided
for under paragraph 24 of the Interinstitutional Agree-
ment of 6 May 1999,

— providing for a redeployment of EUR 40 million,

— leaving a margin of EUR 20 million under heading 4,

— reducing payment appropriations,

The priorities

the planning of

1. Deplores the fact that the Commission did not show
greater rigour and foresight in its proposals, particularly in
respect of
funding requirements for
Kosovo, and that those proposals are not realistically based
on reliable, confirmed needs; notes with satisfaction that
the Council proposal to exceed the ceiling for heading 4 of
the financial perspective goes beyond the Commission
proposal referred in recital C,

2. Notes in particular that, while the estimates put forward
by the Commission refer to the conclusions of a World
bank study of foreseeable requirements in the region, they
are not based on an accurate assumption of the overall
volume of such needs, how long the effort needs to be
maintained, the share to be borne by the European Union,
the Member States and the other donors and the ability of
a region with a gross national product which, according to
the most optimistic assessments, stands at
less than
EUR 800 million, to take up such funding;

3. Notes that, in connection with funding for the Balkans, the
President of the Commission has exhibited a willingness to
pledge EUR 5,5 billion from the EU over a seven-year
period, but that the Commission considers that it will be
unable to make a satisfactory assessment of requirements
before April 2000;

4. Notes that the information provided by the Commission
concerning revenue is included neither in Letter of Amend-
ment No 4/2000 to the preliminary draft budget nor in
Letter of Amendment No 2/2000 to the draft budget;
points out that the surplus available from the previous
year — the 1999 budget balance — can only be included
in the budget by means of an amending and supplementary
budget in agreement with Parliament following finalisation
in accordance with Article 32 of the Financial Regulation;

5. Notes that the Council’s proposal that the funding required
for Kosovo, which was initially set at EUR 500 million
for 2000, be divided between the 2000 financial year
(EUR 360 million)
year
the
(EUR 140 million) and that part of the reconstruction
effort in 2000 be funded by means of carry-overs from
1999 is not based on a fully satisfactory analysis of
requirements, the appropriate timetable and the responsi-
bilities to be taken on by the Union;

financial

2001

and

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6. Accepts, despite the additional efforts required, the draft
compromise proposed by the Council to provide funding
of EUR 360 million in 2000 for reconstruction work;
decides accordingly to leave a margin of EUR 20 million
below the ceiling for heading 4 and undertakes if necessary
to redeploy appropriations to an amount of EUR 40 mil-
lion;

7. Accepts, with a view to taking its proper part in the efforts
to achieve rigour, that the future fisheries agreement with
Morocco and the requirements identified in East Timor
and Turkey should be funded within the current financial
perspective by means of redeployment of the appropri-
ations entered under heading 4 (External action) of the
budget;

8. Reiterates its wish to see the pre-accession appropriations
for Cyprus and Malta entered under subsection B7 (Pre-
accession); however, owing to the Council’s refusal to agree
to this, enters the necessary appropriations under heading
4, so as not to penalise the countries concerned;

9. Will await the assessment of funding requirements in
Kosovo and the Balkans as a whole, which the Commission
has indicated that it will be able to produce by April 2000,
before determining:

— the overall volume of funding to be committed to
Kosovo and the Balkans as a whole between 2000 and
2006,

— the share of such funding to be borne by the European

Union,

— the total appropriations which are not covered by the
existing programmes and which will therefore call for
a raising of the ceiling for heading 4;

10. Emphasises its determination to take appropriate action
on the assessment and the Commission proposal at the
earliest opportunity, and by April 2000 at the latest, by
negotiating with the other arm of the budgetary authority
an appropriate revision of the financial perspective in
respect of heading 4 in accordance with the declaration
annexed to the joint decision (1);

11. Takes the view that the requirements under Article 14 of
the Financial Regulation are substantiated for the changes
to lines against subheading 1a and headings 5 and 7,
which were introduced by Letters of Amendment Nos 1
and 2 to the 2000 draft budget and have been accepted
unamended; considers that the requirements of Article
14 of the Financial Regulation have not been met for
lines against subheading 1b and heading 4, however, and
rejects those parts of Letter of Amendement No 2 to the
2000 draft budget on the ground hat, as regards those
headings, ‘very exceptional circumstances’ have not been
adduced;

(1) See Item 7.

TAOs: genuine reform under way

12. Welcomes the Commission’s positive reaction to Amend-
ment 460 and the constructive attitude it has shown to
the need for reform; endorses Vice-President Kinnock’s
decision to make technical assistance a central issue in
the administrative reform process; points out, further-
more,
the Council has approved the move to
identify administrative expenditure within the budgetary
nomenclature;

that

13. Considers that the assurances given in connection with
the implementation of the principles advocated by Parlia-
ment, namely the phasing-out of the TAOs, the drawing
up of a list of tasks that may be delegated, and the
setting up of Decentralised Implementation Units (DIUs)
supervised by regular staff from the Commission, who
come under its authority, are now credible in that they
are converted by a precise and transparent timetable;

14. Proposes therefore to release the reserve of 90 % of the
appropriations for technical assistance and administrative
expenditure which was set aside at first reading and
to transfer 10 % of administrative appropriations to
operational headings, with a view to prompting the
Commission to adopt more rigorous management pro-
cedures; is keeping 10 % of the administrative appropri-
ations for heading 4 lines in the reserve, pending pro-
vision of information to the budgetary authority on
present contracts;

15. Reserves the right to make a comprehensive appraisal of
the action taken by the Commission in this connection
before the vote at first reading on the 2001 budget;

Headings 1, 3, 4 and 5

16. Welcomes the fact that agreement has been reached with
the Council on some of the points covered by Letter of
Amendment No 2 to the 2000 draft budget, with
particular reference to subheading 1a; in this connection,
welcomes the Council’s decision to accept that funding
of EUR 50 million be provided for consumer protection
without any cut in the appropriations earmarked for the
distribution of food products to disadvantaged persons;

17. Notes that most of the amendments adopted at first
reading have not been taken up by the Council; draws
attention to the need to ensure that the level of payment
appropriations to be entered in the budget is compatible
with the level of commitment appropriations;

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18. Deplores the fact that the Council has rejected certain
pilot projects and preparatory actions for which the
appropriations were entered by Parliament in full com-
pliance with the Interinstitutional Agreement of 6 May
1999; points out, furthermore, that, when sifting pilot
projects and preparatory actions, the Council agreed to
delete the measures it itself entered at first reading to
assist employees of firms affected by the discontinuation
of the duty-free system;

19. Confirms its first-reading decisions with regard to the
appropriations to be entered for the Union’s external
actions, but has been obliged to redeploy EUR 150 mil-
lion to permit funding of new needs in East Timor,
Turkey, Cyprus and Malta, and of the fisheries agreement
with Morocco; has endeavoured to conduct this redeploy-
ment without sacrificing any of Parliament’s basic priori-
ties and while taking account of the reassessment of the
needs set out in Letter of Amendment No 4 to the 2000
preliminary draft budget;

20. Welcomes also the Council’s agreement to allocate 75
new posts intended for OLAF and the creation of an
appropriate structure within the budget; points out, lastly,
that the Council has approved conversion of the Sapard
pre-accession instrument into differentiated appropri-
ations, albeit without quantifying what the payments
reduction means;

Other institutions

21. Notes Letter of Amendment No 3/2000, adopted by the
Council, to the 2000 draft budget, and voices its full
endorsement of that letter of amendment;

22.

Instructs its Secretary-General to adjust the new staff
promotion policy to take account of the shortcomings
noticed so far, in particular concerning promotion possi-
bilities for the lowest grades in each category;

23. Considers that the new mobility policy for staff in the A
grades is in principle a useful means of making Parlia-
ment’s Secretariat more dynamic, but stresses that unless
professional training in specialised areas such as the
environment, transport and agriculture is stepped up,
there will be a huge loss of human capital; instructs its
Secretary-General to submit a report by 31 March 2000
proposing the action intended to overcome this loss of
human capital in the short- and medium-term;

insists that promotions,

24. Emphatically underscores the fact that mobility, pro-
motion and assessment policy must form a coherent
whole;
in particular of A1
and A2 grades, must be based strictly on professional
performance and on personal and managerial skills;
to submit a report by
expects its Secretary-General
31 Marc 2000 on the coherent
implementation of
mobility, promotion and assessment policy; expects in
particular that,
in the area of assessment policy, the
training of assessors, the assessment criteria and the scope
for officials, for their part, to assess their assessors will
also be addressed;

25.

Is in favour of the continuation of the agreement between
the Ombudsman and the Parliament on administrative,
financial and logistical matters; stresses that although
the Ombudsman’s budget will become an independent
section of the general budget of the Communities as from
the 2000 budget onwards,
involve
increased staffing in the areas of administration, budgets
and finances;

this should not

26.

Instructs its President to designate the budgetary act as the ‘Budget of the European
Union’;

27.

Instructs its President to forward these budgetary decisions to the Council, the
Commission and the institutions and advisory bodies concerned.