Proposal for a Decision of the European Parliament and the Council concerning the revision of the financial perspective (interinstitutional Agreement of 6 May 1999 on budgetary discipline and improvement of the budgetary procedure)
Date: 2000-05-05
Institutions: European Commission
Subjects: Community budget, Western Balkans, economic development, financial aid, multiannual financial framework

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 of the financial perspective (2001-06)

Financing of the programme of assistance for the western Balkans

Reclassification of aid to Cyprus and Malta

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT AND THE COUNCIL

concerning the revision of the financial perspective
(Interinstitutional Agreement of 6 May 1999 on budgetary discipline and improvement
of the budgetary procedure)

(presented by the Commission)

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE
EUROPEAN PARLIAMENT

concerning the revision of the financial perspective (2001-06)

Financing of the programme of assistance for the western Balkans

Reclassification of aid to Cyprus and Malta

1.

NEW FACTORS TO BE TAKEN INTO ACCOUNT SINCE THE CONCLUSION OF THE
INTERINSTITUTIONAL AGREEMENT (IIA) OF 6 MAY 1999

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 of
the events occurring at the time in the Balkans. However, a declaration of the
European Parliament and the Council annexed to the IIA reads, "In view of the
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, including, if appropriate, a
proposal for revision of the financial perspective".

€

200 million from the
The budgetary authority decided on 16 December 1999 to draw
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 would
propose at a later date a programme of assistance for the period 2000-06 for the
western Balkans, including Kosovo, the amount of which would require it to present a
proposal for the revision of the financial perspective, accompanied by a programming
of expenditure for heading 4. Parliament and the Council, for their part, agreed “that a
programme 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 significantly
more than already programmed, this would mean exceeding the current ceilings for
heading 4 of the financial perspective”.

This communication contains the Commission's proposal for the revision of the
financial perspective,
in conjunction with the programme of assistance for the
reconstruction, development and stabilisation of the western Balkans and a new
programming for heading 4 set out in separate documents.

1.2.

The development of the enlargement process

The financial perspective agreed in the IIA contains a heading 7 covering
pre-accession aid for the ten applicant countries from central and eastern Europe.

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 proposal
by the Commission a new regulation concerning aid for Cyprus and Malta, which

2

currently comes under cooperation with non-member Mediterranean countries
covered by heading 4 of the financial perspective, to make it pre-accession aid 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-accession
aid to the two applicant countries concerned to be included under the corresponding
heading of the financial perspective. Parliament asked for this reclassification during
the debate on the 2000 budget.

2.

FINANCING OF THE PROGRAMME OF ASSISTANCE FOR THE RECONSTRUCTION,
DEVELOPMENT AND STABILISATION OF THE WESTERN BALKANS (CARDS
PROGRAMME)

2.1.

Requirements to be covered under heading 4 of the financial perspective

The proposal
COM(2000) … final presented by the Commission.

for a regulation implementing this programme is contained in

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 Former
Yugoslav Republic of Macedonia. The aim is to establish a comprehensive legal
framework for cooperation between the European Union and the western Balkans and
to implement an integrated programme of reconstruction and economic development.
Each country's participation will be conditional on compliance with certain criteria
concerning democracy, the rule of law and human rights.

The assistance offered is mainly designed to contribute to the development of the
stabilisation and association process. The regional dimension receives special attention
in order to support the Union's role within the Stability 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 Nations
Interim Mission in Kosovo, will be duly consulted for the provision of assistance to
these regions.

The more specific objectives of the programme are:

– the reconstruction and stabilisation of the region;

– the creation of an institutional and legislative framework to support democracy, the

rule of law, 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 European Union.

3

2.1.2.

Additional resources to be provided

A reference amount of up to
5.5 billion is earmarked for the period 2000-06 for
expenditure under this programme and for macro-financial aid to the countries in the
region. The indicative breakdown of this amount is as follows:

€

Albania, Croatia,
Bosnia-Herzegovina
(including macro-fin.
assistance), Fyrom,
Montenegro

Serbia

Kosovo

Regional cooperation

Macro-fin. assistance

Total

2000

2001

2002

2003

2004

2005

2006

Total

203

255

230

210

210

200

200

1508

-

40
(+200)

310

28

pm*

541

350

80

75

800
(+200)

320

420

420

430

430

240

90

110

90

30

90

30

90

30

90

pm*

pm*

pm*

pm*

pm*

880

830

750

750

750

2060
(+200)

1100

558

75

5300
(+200)

*Actual expenditure under this head will be charged to the allocations appearing
elsewhere in the table for the recipient countries.

€

€

541 for 2000 is already budgeted for; this includes, for Kosovo,
€

30 million
The
40 million to be redeployed in the course of
carried over from 1999 to 2000 and
2000. This amount incorporates the drawing on the flexibility instrument decided by
the budgetary authority.
€

40 million is planned at all events for Serbia to assist the democratic
For 2001,
forces and the towns administered by the opposition. If the political conditions
imposed on the granting of other aid were to be satisfied this year already, an
additional amount of up to

200 million would have to be taken into account.

€

1.85 billion was already
When the preliminary draft budget for 2000 was established,
programmed over the period 2000-06 for assistance for the western Balkans. With the
amounts now entered in the 2000 budget, the additional financing requirement to be
covered from 2001 to 2006 for the new CARDS programme is

3.43 billion.

€

€

2.2.

The arrangements proposed for financing 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, the
institutions must examine the scope for
reallocating expenditure between the
programmes covered by the heading concerned by the revision, the objective being
in absolute terms and as a percentage of the new
that a significant amount,
expenditure planned, should be found within the existing ceiling for the heading.

4

The 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 Commission has reviewed the programming underlying the Agenda 2000 financial
framework, with the dual concern of identifying any margins that could be used to
finance new measures for the Balkans and of preserving the priorities set for the
conduct of the Union's external policies.

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
1.43 billion could be
reassigned over the period 2001-06 for the planned financing of the CARDS
programme.

€

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
300 million
each year from 2001 to 2006 should make it possible to cover the additional needs for
the new CARDS programme and leave the necessary safety margins.

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

New ceiling

Margin

5035

5140

5248

5358

5470

5585

90

64

73

112

129

127

Flexibility instrument

(200)

The increase in the ceiling for 2001 allows,
in respect of Serbia, only for the
€
40 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 be
satisfied this year, the margin available beneath the ceiling for the heading and the
flexibility instrument would be called on in accordance with the IIA.

From 2002 onwards, the ceilings allow for all the programmed assistance for Serbia.
However, the increases will be "frozen" and may not be used for other purposes as
long as the political conditions attached to the granting of the aid have not been
satisfied in Serbia. The Commission proposes that this be stipulated in the decision on
the revision of the financial perspective to be taken by the budgetary authority.

5

2.2.3.

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 by
lowering 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 financial
perspective. The IIA rules out any such reductions, in connection with a revision of
the financial perspective, for headings 2 and 7.

the most recent forecasts available for expenditure under
On the other hand,
sub-heading 1.a show that for 2001, assuming no change in legislation and tight
there will be an available margin of some
management by the Commission,
€
400 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
€
300 million for each of the two years 2001 and 2002, thus leaving a certain safety
margin. Although similar savings should be made in the subsequent years (2003-06), it
is proposed that
the present ceiling for the sub-heading for these years be left
unchanged in order not to prejudge the outcome of the examination of the report that
the Commission must present to the Council in 2002, as required by the conclusions
of the Berlin European Council, on the development of agricultural expenditure and
any proposals which may be attached in line with the objectives of the reform.

2.3.

Impact on the overall expenditure ceilings in the financial perspective

For 2001 and 2002, the overall ceiling of the financial perspective in appropriations
for commitments would not be affected because of the offsetting between headings 4
and 1.a. The same would be true for the overall ceiling in appropriations for
payments.

€

For subsequent years, the overall ceiling in appropriations for commitments, like that
300 million a year. It is proposed, however, that this
for heading 4, would rise by
increase should not be taken into account in the total expenditure in commitments in
the budget procedures for the years in question. The overall ceiling in appropriations
for payments would therefore remain unchanged.

3.

RECLASSIFICATION, UNDER HEADING 7 OF THE FINANCIAL PERSPECTIVE, OF AID
TO CYPRUS AND MALTA

3.1.

Significance of this reclassification

The purpose of transferring this aid from heading 4 to heading 7 is to identify it, in the
presentation of the financial perspective table, as pre-accession aid, the status it will
have when the legal base 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

6

Commission believes, however, that in this specific case the proposed operation does
not alter the purpose to which the resources are assigned. The same amounts continue
to be used for the same type of measures for the same recipients. It is no more than a
transfer of budget lines from one heading to another to reflect the new title given to
this aid. It therefore believes that this reclassification is possible by a simple revision
of the financial perspective, rather than by the full-dress procedure, for purely formal
reasons, of amending the IIA.

3.2.

Practical arrangements

3.2.1.

Financial perspective table

On the basis of the amounts already programmed for aid to Cyprus and Malta and the
details given in the financial statement accompanying the proposal for a new legal
base, the total annual allocation for these two countries is
20 million a year.
Applying the same treatment in the financial perspective as for pre-accession aid for
the applicant countries of central and eastern Europe, this constant amount should be
entered each year from 2001 to 2006, regardless of the actual date of accession. The
transfer of this amount in appropriations for commitments does not affect the overall
ceiling for appropriations for payments.

€

For each of these years, the heading 4 ceiling would be lowered by this amount.
Heading 7 (Pre-accession aid) 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 three
instruments being applied for these countries (SAPARD, ISPA and PHARE).

– The other for the Mediterranean countries, covering for the moment the aids to
20 million, with no further breakdown,
Cyprus and Malta, with an annual total of
as pre-accession aid for these countries would come under a single specific
instrument.

€

3.2.2.

Rewording of paragraph 11 of the IIA

Paragraph 11 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 be
altered by common agreement of the two arms of the budgetary authority during the
budgetary procedure. This provision would be retained, but it would be specified that
it applies solely to the sub-heading concerning the applicant countries in central and
eastern Europe.

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 Turquey from heading 4 to heading 7. To indicate this approach, a budget line
for pre-accession aid to Turquey with a p.m. will be introduced under heading 7 in the
PDB 2001. The actual transfer of the corresponding appropriations from heading 4 to
heading 7 would, however, be intertaken at an appropriate later stage.

7

4.

OVERVIEW OF 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 in current values.

In order to remain coherent and neutral in relation to the technical adjustments already
made for 2001 or to those which will be made for subsequent years, the formal
decision on the revision of the financial perspective must refer to the basic table
agreed in the IIA, which is expressed in constant 1999 prices. The amounts in current
values are converted into 1999 prices by means of the 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 2001
for amounts under the other headings concerned (headings 4 and 7), i.e. 3.84% over
the two years;

- for the amounts relating to 2002-06: the deflator applied from 2002 onwards is 2% a
year for all headings,
in accordance with the general assumption used for the
construction of the financial perspective and the overall inflation rate applicable to the
heading 1 ceilings.

8

CHANGES IN THE CEILINGS OF THE FINANCIAL PERSPECTIVE (CURRENT PRICES)

Headings

1. Agriculture

1.a CAP expenditure (not including rural development)

4. External action

- Financing of the CARDS programme

- Transfer of aid to Cyprus and Malta

7. Pre-accession aid

2001

2002

2003

2004

2005

2006

Total

-300

-300

+280

+300

-20

+20

-300

-300

+280

+300

-20

+20

-

-

+280

+300

-20

+20

-

-

+280

+300

-20

+20

-

-

+280

+300

-20

-20

-

-

-600

-600

+280

1680

+300

+1800

-20

+20

-120

+120

7.a Applicant countries in central and eastern Europe

- unchanged -

- Agriculture

- Pre-accession structural instruments

- PHARE (applicant countries)

7.b Mediterranean applicant countries

Total appropriations for commitments

Total appropriations for payments

+20

+20

+20

+20

+20

+120

0

+300

+300

+300

+300

+1200

- unchanged -

+20

0

9

2000/0109 (COD)

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT AND THE COUNCIL

concerning the revision of the financial perspective
(Interinstitutional Agreement of 6 May 1999 on budgetary discipline and
improvement of the 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 of the budgetary procedure,1 and in particular paragraphs 19, 20 and 21
thereof,

Having regard to the Commission proposal,2

Whereas:

(1)

(2)

(3)

The Commission has presented a proposal for a Regulation for implementing a
programme of assistance for the reconstruction, development and stabilisation of
the western Balkans.3

Apart from the possibilities of reallocation within heading 4 (External action) of
the financial perspective, the financing of this programme will involve raising the
ceiling 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 aid
to Serbia, as set out within this programme, have not been satisfied in that country.

The expenditure forecasts for 2001 in sub-heading 1.a "CAP expenditure (not
including rural development)" show that, assuming no change in legislation, a
margin will be available beneath the ceiling. The planned adjustments to certain
market organisations also point to such a margin in 2002. Although similar savings
are likely to be made in subsequent years, it would be wrong to prejudge the
outcome of the review, scheduled for 2002 in accordance with the conclusions of
the Berlin European Council, of the development of agricultural spending. The
ceiling 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 two
years.

1

2

3

OJ C 172, 18.6.1999, p. 1.
COM(2000) … final of …
COM(2000) … final of …

10

(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 Cyprus
and Malta to give it the status of pre-accession aid. The amount of this aid already
programmed should therefore be reclassified from heading 4 to a special
subheading inserted in heading 7 (Pre-accession aid) of the financial perspective.
Paragraph 11 of the Interinstitutional Agreement needs to be redrafted to take
account of this 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 following
amounts expressed in current prices:

Heading

1. Agriculture

2001

2002

2003

2004

2005

2006

-300

-300

-

-

-

-

-

-

-

-

1.a CAP expenditure (not
rural development)

including

-300

-300

4. External action

+280

+280

+280

+280

+280

+280

- Financing of the CARDS programme

+300

+300

+300

+300

+300

+300

- Transfer of aid to Cyprus and Malta

7. Pre-accession aid

7.a Applicant countries in central and
eastern Europe
- Agriculture
- Pre-accession structural instruments
- PHARE (applicant countries)

-20

+20

-20

+20

-20

+20

-20

+20

-20

-20

-20

+20

- Unchanged -

7.b Mediterranean applicant countries

+20

+20

+20

+20

+20

+20

Total
commitments

appropriations

for

0

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 the
aid in the programme for this country have 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 ceilings in
appropriations for commitments for the years 2003 to 2006 were still the same as in the
initial financial perspective of 1999 indicated in footnote (3) of the tables annexed to this

11

decision. 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 the
conclusions of the forthcoming review and report on the evolution of agriculture
expenditure accompagnied, if necessary, by appropriate proposals..

3. The financial framework for EU-21 contained in Annex II to the Interinstitutional
Agreement is amended in accordance with paragraph 1.

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 in
Annex A to this Decision. These tables shall replace those appearing in Annexes I and II
respectively to the Interinstitutional Agreement of 6 May 1999.

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), and
the corresponding financial framework for EU-21. These tables shall replace those
contained in the Commission communication on the technical adjustment of the financial
perspective for 2001 in line with movements in GNP 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 of central and eastern Europe) are indicative …".

Done at Brussels,

For the European Parliament
The President

For the Council
The President

4

COM(2000) 93 final of 17.2.2000.

12

ANNEX A

FINANCIAL PERSPECTIVE EU-15 (REVISED)
(EUR million - 1999 prices)

APPROPRIATIONS FOR COMMITMENTS
1. AGRICULTURE
CAP (not including rural development)
Rural development and accompanying measures
2. STRUCTURAL OPERATIONS
Structural Funds
Cohesion Fund
3. INTERNAL POLICIES (1)
4. EXTERNAL ACTION
5. ADMINISTRATION (2)
6. RESERVES
Monetary reserve
Emergency aid reserve
Guarantee reserve
7. PRE-ACCESSION AID
7a Applicant countries in central and eastern Europe
Agriculture
Pre-accession structural instrument
PHARE (applicant countries)
7b Mediterranean applicant countries
TOTAL APPROPRIATIONS FOR COMMITMENTS (3)
TOTAL APPROPRIATIONS FOR PAYMENTS
Appropriations for payments as % of GNP

13

2004
42.760
38.410
4.350
29.595
27.080
2.515
6.370
4.843
4.900
400

2005
41.930
37.570
4.360
29.595
27.080
2.515
6.480
4.849
5.000
400

2006
41.660
37.290
4.370
29.170
26.660
2.510
6.600
4.854
5.100
400

2002

2001

4.330

4.320

2000
2003
40.920 42.512 43.617 43.770
36.620 38.192 39.287 39.430
4.300
4.340
32.045 31.455 30.865 30.285
29.430 28.840 28.250 27.670
2.615
2.615
6.260
5.930
4.839
4.550
4.800
4.560
900
400
500
200
200
3.120
3.120
520
1.040
1.560

2.615
6.150
4.834
4.700
650
250
200
200
3.139
3.120
520
1.040
1.560
19

2.615
6.040
4.830
4.600
900
500
200
200
3.139
3.120
520
1.040
1.560
19

200
200
3.139
3.120
520
1.040
1.560
19

200
200
3.138
3.120
520
1.040
1.560
18
90.922
92.025 93.476 93.955 93.493
89.600 91.110 94.220 94.880
89.620
1,13% 1,12% 1,13% 1,11% 1,05% 1,00% 0,97%

200
200
3.139
3.120
520
1.040
1.560
19
92.007
91.910

200
200
3.138
3.120
520
1.040
1.560
18
91.392
90.160

AVAILABLE FOR ACCESSION (appropriations for payments)
Agriculture
Other expenditure
CEILING, APPROPRIATIONS FOR PAYMENTS
Ceiling, payments as % of GNP
Margin for unforeseen expenditure
Own resources ceiling

4.140
1.600
2.540

6.710
2.030
4.680

8.890
2.450
6.440

14.220
3.400
10.820
89.600 91.110 98.360 101.590 100.800 101.600 103.840
1,13% 1,12% 1,18% 1,19% 1,15% 1,13% 1,13%
0,14% 0,15% 0,09% 0,08% 0,12% 0,14% 0,14%
1,27% 1,27% 1,27% 1,27% 1,27% 1,27% 1,27%

11.440
2.930
8.510

(1) In accordance with Article 2 of Decision No182/1999/EC of the European Parliament and of the Council and Article 2 of Council
11 510 million at current prices is available for research over the period
Decision1999/64/Euratom (OJ L 26, 1.2.1999, p.1 and p. 34),
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 maximum of
(3) The Commission and the budgetary authority undertake to act, during the annual budget procedures, as if the actual ceilings for total
appropriations for commitments were as follows for the years 2003 to 2006:

1 100 million at 1999 prices for the period 2000-06.

€

€

2003
2005
2004
93.215 91.735 91.125

2006
90.660

14

FINANCIAL PERSPECTIVE EU-21 (REVISED)
(EUR million - 1999 prices)

APPROPRIATIONS FOR COMMITMENTS
1. AGRICULTURE
CAP (not including rural development)
Rural development and accompanying measures
2. STRUCTURAL OPERATIONS
Structural Funds
Cohesion Fund
3. INTERNAL POLICIES (1)
4. EXTERNAL ACTION
5. ADMINISTRATION (2)
6. RESERVES
Monetary reserve
Emergency aid reserve
Guarantee reserve
7. PRE-ACCESSION AID
7a Applicant countries in central and eastern Europe
Agriculture
Pre-accession structural instrument
PHARE (applicant countries)
7b Mediterranean applicant countries
8. ENLARGEMENT
Agriculture
Structural operations
Internal policies
Administration

2000
40.920
36.620
4.300
32.045
29.430
2.615
5.930
4.550
4.560
900
500
200
200
3.120
3.120
520
1.040
1.560

2001
42.512
38.192
4.320
31.455
28.840
2.615
6.040
4.830
4.600
900
500
200
200
3.139
3.120
520
1.040
1.560
19

2002
43.617
39.287
4.330
30.865
28.250
2.615
6.150
4.834
4.700
650
250
200
200
3.139
3.120
520
1.040
1.560
19
6.450
1.600
3.750
730
370

2003
43.770
39.430
4.340
30.285
27.670
2.615
6.260
4.839
4.800
400

200
200
3.139
3.120
520
1.040
1.560
19
9.030
2.030
5.830
760
410

2004
42.760
38.410
4.350
29.595
27.080
2.515
6.370
4.843
4.900
400

200
200
3.139
3.120
520
1.040
1.560
19
11.610
2.450
7.920
790
450

2005
41.930
37.570
4.360
29.595
27.080
2.515
6.480
4.849
5.000
400

200
200
3.138
3.120
520
1.040
1.560
18
14.200
2.930
10.000
820
450

2006
41.660
37.290
4.370
29.170
26.660
2.510
6.600
4.854
5.100
400

200
200
3.138
3.120
520
1.040
1.560
18
16.780
3.400
12.080
850
450

15

CEILING, APPROPRIATIONS FOR COMMITMENTS (3)
CEILING, APPROPRIATIONS FOR PAYMENTS
of which: enlargement
Ceiling, payments as % of GNP
Margin for unforeseen expenditure
Own resources ceiling

92.025
89.600

93.476 100.405 102.523 103.617 105.592 107.702
98.360 101.590 100.800 101.600 103.840
91.110
14.220
8.890
4.140
6.710
1,13% 1,12% 1,14% 1,15% 1,11% 1,09% 1,09%
0,14% 0,15% 0,13% 0,12% 0,16% 0,18% 0,18%
1,27% 1,27% 1,27% 1,27% 1,27% 1,27% 1,27%

11.440

(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),
11 510 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 maximum of
(3) The Commission and the budgetary authority undertake to act, during the annual budget procedures, as if the actual ceilings for total
appropriations for commitments were as follows for the years 2003 to 2006:

1 100 million at 1999 prices for the period 2000-06.

€

€

2003

2004

2005

2006

102.245 103.345 105.325 107.440

16

ANNEX B

FINANCIAL PERSPECTIVE EU-15 (REVISED)
ADJUSTED TO 2001 PRICES
(EUR million)

APPROPRIATIONS FOR COMMITMENTS
1. AGRICULTURE
CAP (not including rural development)
Rural development and accompanying measures
2. STRUCTURAL OPERATIONS
Structural Funds
Cohesion Fund
3. INTERNAL POLICIES (1)
4. EXTERNAL ACTION
5. ADMINISTRATION (2)
6. RESERVES
Monetary reserve
Emergency aid reserve
Guarantee reserve
7. PRE-ACCESSION AID
7a Applicant countries in central and eastern Europe
Agriculture
Pre-accession structural instrument
PHARE (applicant countries)
7b Mediterranean applicant countries
TOTAL APPROPRIATIONS FOR COMMITMENTS (3)

Current prices
2000
41.738
37.352
4.386
32.678
30.019
2.659
6.031
4.627
4.638
906
500
203
203
3.174
3.174
529
1.058
1.587

93.792

2001 prices
2002
45.379
40.874
4.505
32.106
29.391
2.715
6.386
5.019
4.880
666
250
208
208
3.260
3.240
540
1.080
1.620
20
97.696

2001
44.230
39.735
4.495
32.720
30.005
2.715
6.272
5.015
4.776
916
500
208
208
3.260
3.240
540
1.080
1.620
20
97.189

2003
45.538
41.023
4.515
31.503
28.788
2.715
6.500
5.025
4.984
416

208
208
3.260
3.240
540
1.080
1.620
20
97.226

2004
44.488
39.962
4.526
30.785
28.174
2.611
6.614
5.029
5.088
416

208
208
3.260
3.240
540
1.080
1.620
20
95.680

2005
43.624
39.088
4.536
30.785
28.174
2.611
6.729
5.035
5.192
416

208
208
3.259
3.240
540
1.080
1.620
19
95.040

2006
43.344
38.797
4.547
30.343
27.737
2.606
6.853
5.040
5.296
416

208
208
3.259
3.240
540
1.080
1.620
19
94.551

17

TOTAL APPROPRIATIONS FOR PAYMENTS
Appropriations for payments as % of GNP
AVAILABLE FOR ACCESSION (appropriations for payments)
Agriculture
Other expenditure
CEILING, APPROPRIATIONS FOR PAYMENTS
Ceiling, payments as % of GNP
Margin for unforeseen expenditure
Own resources ceiling

91.322
1,12%

91.322
1,12%
0,15%
1,27%

93.759

95.581

94.730
1,11%

98.671
93.197
1,10% 1,04% 1,00% 0,97%
14.792
6.979
3.537
2.112
4.867
11.255
105.650 104.828 105.658 107.989
94.730
1,18% 1,14% 1,12% 1,12%
1,11%
0,16%
0,09% 0,13% 0,15% 0,15%
1,27% 1,27% 1,27% 1,27% 1,27% 1,27%

97.975
1,12%
4.306
1.665
2.641
102.281
1,17%
0,10%

11.899
3.048
8.851

9.247
2.549
6.698

(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 L 26, 1.2.1999, p. 1 and p. 34),
(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
maximum of
(3) The Commission and the budgetary authority undertake to act, during the annual budget procedures, as if the actual ceilings for total
appropriations for commitments were as follows for the years 2003 to 2006:

11 510 million at current prices is available for research over the period 2000-02.

1 100 million at 1999 prices for the period 2000-06.

€

€

2003
96.937

2004
95.397

2005
94.762

2006
94.279

18

FINANCIAL FRAMEWORK EU-21 (REVISED)
ADJUSTED TO 2001 PRICES
(EUR million)

APPROPRIATIONS FOR COMMITMENTS
1. AGRICULTURE
CAP (not including rural development)
Rural development and accompanying measures
2. STRUCTURAL OPERATIONS
Structural Funds
Cohesion Fund
3. INTERNAL POLICIES (1)
4. EXTERNAL ACTION
5. ADMINISTRATION (2)
6. RESERVES
Monetary reserve
Emergency aid reserve
Guarantee reserve
7. PRE-ACCESSION AID
7a Applicant countries in central and eastern Europe
Agriculture
Pre-accession structural instrument
PHARE (applicant countries)
7b Mediterranean applicant countries
8. ENLARGEMENT
Agriculture
Structural operations
Internal policies

Current prices
2000
41.738
37.352
4.386
32.678
30.019
2.659
6.031
4.627
4.638
906
500
203
203
3.174
3.174
529
1.058
1.587

2001
44.230
39.735
4.495
32.720
30.005
2.715
6.272
5.015
4.776
916
500
208
208
3.260
3.240
540
1.080
1.620
20

19

2001 prices
2002
45.379
40.874
4.505
32.106
29.391
2.715
6.386
5.019
4.880
666
250
208
208
3.260
3.240
540
1.080
1.620
20
6.709
1.665
3.902
758

2003
45.538
41.023
4.515
31.503
28.788
2.715
6.500
5.025
4.984
416

208
208
3.260
3.240
540
1.080
1.620
20
9.393
2.112
6.066
789

2004
44.488
39.962
4.526
30.785
28.174
2.611
6.614
5.029
5.088
416

208
208
3.260
3.240
540
1.080
1.620
20
12.076
2.549
8.240
820

2005
43.624
39.088
4.536
30.785
28.174
2.611
6.729
5.035
5.192
416

208
208
3.259
3.240
540
1.080
1.620
19
14.770
3.048
10.404
851

2006
43.344
38.797
4.547
30.343
27.737
2.606
6.853
5.040
5.296
416

208
208
3.259
3.240
540
1.080
1.620
19
17.455
3.537
12.568
883

Administration
TOTAL APPROPRIATIONS FOR COMMITMENTS (3)
TOTAL APPROPRIATIONS FOR PAYMENTS
of which: enlargement
Appropriations for payments as % of GNP
Margin for unforeseen expenditure
Own resources ceiling

93.792
91.322

1,12%
0,15%
1,27%

97.189
94.730

1,11%
0,16%
1,27%

384
104.405
102.281
4.306
1,13%
0,14%
1,27%

426

467

467

467

106.619 107.756 109.810 112.006
105.650 104.828 105.658 107.989
14.792
6.979
1,13% 1,10% 1,08% 1,07%
0,14% 0,17% 0,19% 0,20%
1,27% 1,27% 1,27% 1,27%

11.899

9.247

(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 L 26, 1.2.1999, p. 1 and p. 34),
(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
maximum of
(3) The Commission and the budgetary authority undertake to act, during the annual budget procedures, as if the actual ceilings for total
appropriations for commitments were as follows for the years 2003 to 2006:

11 510 million at current prices is available for research over the period 2000-02.

1 100 million at 1999 prices for the period 2000-06.

€

€

2003
106.330

2004
107.473

2005
109.532

2006
111.734

20