Preliminary draft amending budget No 1/2000 section III - Commission
Date: 2000-06-20
Institutions: Directorate-General for Budget, European Commission
Subjects: amending budget, budgetary equilibrium, gross national product, originating product, preliminary draft EC budget













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52000SC0757

Preliminary draft Amending Budget No 1/2000 section III - Commission  /* SEC/2000/0757 final */  









PRELIMINARY DRAFT AMENDING BUDGET No 1/2000 SECTION III - COMMISSION(presented by the Commission)Having regard to:- Article 78 of the Treaty establishing the European Coal and Steel Community,- Article 272 of the Treaty establishing the European Community,- Article 177 of the Treaty establishing the European Atomic Energy Community,- The Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities, [1] as last amended by Regulation (EC, ECSC, Euratom) No 2673/1999 of 13 December 1999, [2] and in particular Article 15 thereof,[1]  OJ L 356, 31.12.1977, p. 1.[2]  OJ L 326, 18.12.1999.The European Commission hereby presents to the budgetary authority preliminary draft amending budget No 1/2000 for the reasons set out in the explanatory memorandum below.SECTION III - COMMISSION1. EXPLANATORY MEMORANDUM1.1. INTRODUCTION1.2. REVENUE1.2.1. 1999 Financial Year Balance1.1.2. Revision of forecasts of Custom Duties , VAT bases & GDP bases1.1.3. Correction of budgetary imbalances1.1.4. Budgetary consequences stemming from the non-participation of certain Member-States in the financing of an EU activity or policy.1.2. EXPENDITURE2. STATEMENT OF REVENUE3. STATEMENT OF EXPENDITURE1. EXPLANATORY MEMORANDUM1.1. INTRODUCTIONThe main objective of this first PDAB of the financial year 2000 is to account for the balance of the 1999 financial year in accordance with Article 32 of the Financial Regulation.Since 1998, the revision of own resources (in particular those based on VAT and GNP) as well as the correction of the budgetary imbalance in favour of the UK are also included in the first PDSAB.It is, however, proposed to also include in this PDAB a series of changes in the nomenclature through the creation of various budgetary lines, or additional details to add to the budgetary remarks.  These changes do not affect the amounts of EU budget expenditure.1.2. REVENUE1.2.1. 1999 Financial Year BalanceIn accordance with Article 32 of the Financial Regulation, the balance for each year is entered in the budget the following year.According to the revenue and expenditure account for 1999, the 1999 balance (not including EFTA-EEA) comes to 3 209 MioEUR.1.2.2. Revision of forecasts of Custom Duties , VAT bases & GDP basesSince the adoption of supplementary and amending budget 1/98, the Commission has proposed to extend the adjustment of the calculations of financing normally contained in the first supplementary and amending budget of the year to the revised forecasts of customs duty and the VAT and GNP bases.The Commission believes that the decision to use revised estimates for these aggregates in the first supplementary and amending budget for the year is a logical extension of current practice. In the first revision of the budget, the Member States' VAT and GNP contributions are normally adjusted in line with any change in expenditure, the balance from the previous year and the revised figures for the UK correction. The use of revised forecasts of the own resources bases will improve the accuracy of the contributions made by the Member States and will reduce the adverse impact of the unavoidable forecasting errors from the previous year.Use of the exchange rate of 30 December 1999 for converting amounts expressed in national currencies into EUR avoids distortion since it is this rate which is used to convert budget estimates from EUR into national currency when amounts are called in (as stipulated in Regulation No 1552/89).The 2000 own resources forecasts set out in the following table are based on the estimates adopted at the meeting of the Advisory Committee on Own Resources on 12 April 2000.Revised forecasts of the customs duties, of the VAT & GNP bases for 2000&gt;TABLE POSITION&gt;1.1.1.1.2.3. Correction of budgetary imbalancesCorrecting budgetary imbalancesTwo elements were taken into consideration in correcting budgetary imbalances for the United Kingdom.(1) The calculation of the update of the correction granted for 1999 to the United Kingdom.In accordance with the document "Method of calculation, financing, payments and budgeting of the correcting budgetary imbalances", the Commission can propose adjustments as soon as possible if actual developments in the basic data turn out to be substantially different from the initial estimates.Following the establishment of the correction entered in the 2000 budget, the Commission has not been in a position to determine whether significant divergences between the initial and the revised estimate have been registered in the basic data which could justify an update of the 1999 correction.  Accordingly, it is proposed, at this stage, not to carry out a revision of the 1999 UK correction, which remains EUR3 635 982 606.(2) Calculation of the balance to be entered according to the final calculation of the correction for the financial year 1996.The final estimate of the 1996 UK correction is ECU 2 573 772 100.  Since ECU 2 856 475 270 has already been budgeted in SAB 1/97, the negative balance of EUR282 703 170 must be budgeted in AB 1/2000.(3) Entry in the budget of the updated UK correction for 1999 and the balance to be settled in accordance with the final calculation of the correction for 1996.The amount to be entered in the budget by AB 1/2000 is the total of the estimates calculated under (1) and (2), i.e.: EUR3 635 982 606 - EUR282 703 170 = EUR3 353 279 436.Final financing of the 1996 correctionThe balance of the final UK correction for 1996 is deducted from the payments of the GNP resource by the other Member States. The total is zero.Table 1 presents the final calculation in 1997 of the financing of the 1996 UK correction, using the final bases established at the end of 1999 and the final correction.TABLE 1: The main results in EUR.&gt;TABLE POSITION&gt;TABLE 2: Overall summary.Final financing (amounts already entered in the budget and balances to be entered in EUR).&gt;TABLE POSITION&gt;1.1.1.1.2.4. Budgetary consequences stemming from the non-participation of certain Member-States in the financing of an EU activity or policy.In accordance with the Protocol for the United Kingdom of the Treaty of Maastricht, an adjustment to the impact of non-participation of this country in the social chapter was taken into account for the budgetary procedure 1997. A new "token entry" budget line was therefore created to receive the allocation of this adjustment, on the basis of the revised GNP share of the remaining Member States. This adjustment has never been put into practice.Article 3 of the Protocol for Denmark of the Treaty of Amsterdam grants full exemption to this country from supporting the financial burden of some specific Justice and Home Affairs policies [3], with the exception of the related administrative costs. Under the terms of Article 5 of the Protocol for Ireland and the United Kingdom, these two countries are exempted, on the same terms as Denmark, unless they request otherwise.[3]  B5-810:"European Fund for refugees :administrative expenditures", B5-811:"Emergency measures for massive refugees inflows", B5-812:"Eurodac" and B5-820:"Education, exchange and co-operation programmes in Justice and Home Affairs".The financing by the remaining Member States would be determined by application of the GNP share to the actual cost of the policy in question. Given the limited amounts of the adjustment involved, it would be logical to carry out this financing calculation only once, on a definitive basis, for any specific financial year. This would be done during the year following that of the policy implementation once the Commission has access to the final data on the turnout of the budget as well as the year-end provisional GNP bases for the financial year during which the policy was implemented.Therefore, it is proposed to create a new chapter and a new budget line in the PDAB 1/2000. The line would carry a token entry ("p.m.") until the 2000 implementation is calculated towards the end of 2001 (there was no implementation in the financial year 1999).1.3. EXPENDITURE1. EAGGF - GuaranteeA few technical changes should be made in the EAGGF Guarantee Section.  The most important concern sub-heading 1b (rural development and accompanying measures) where the Commission proposes creating a new chapter B1-41 (and the subsequent articles) to allow separate budgeting of "the clearance of previous years' accounts and the reduction/suspension of advances" for expenditure related to this sub-heading. Amounts recovered/suspended on behalf of sub-heading 1a will continue to be budgeted under the current chapter B1-37.The other minor changes concern line B1-1509: "Other intervention" (budget remark to be expanded to take account of Agenda 2000), line B1-333:"Plant health measures" (correction of technical mistake), lines B1-4070:"Forestry (Article 29)" & B1-4071:"Forestry (other)" (change in line titles of forestry programmes due to technical error) line B1-408:"Promoting the adaptation and development of rural areas" (add breakdown of line to ensure proper follow-up of individual measures) and finally the creation of line B1-4092:"Transitional measures" and breakdown of line and addition of necessary remarks.2. B2-164:"Completion of earlier programmes"The list of regulations still applied to EAGGF-Guidance Section for the completion of the former periods has to be amended to include the Council Regulation (EEC) No 270/79 of 6 February 1979 on the development of agricultural services in Italy, as last modified by the Council Regulation (EEC) No 1760/87 (OJ L 167 26/06/1987 p.1).  Past commitments based on that regulation are still open and payments should be allowed in 2000.3. B5-312:"Subsidy for the European Agency for the Evaluation of Medicinal ProductsModification of the budget remarks of the subsidy line for EMEA to facilitate the implementation of the new regulation on orphan drugs.Orphan drugs: the problemOrphan drugs are medicinal products for curing rare diseases. As the markets for these drugs are by definition small, but fixed costs for development and testing are as high as for other medicines, commercialisation often is not profitable. For orphan drugs the market often fails.The proposed solutionA Community regulation, adopted by Council on 16 December 1999, tries to correct this market failure. As the fee of EUR200 000 to be paid to the European Agency for the Evaluation of Medicinal Products for a market authorisation is often prohibitive, the regulation provides that the Director of the Agency can waive payment of all or part of this fee. However, the workload for the Agency for the evaluation of an orphan drug is on average the same as for another medicinal product. Therefore, there is no strong incentive to grant this fee exemption, unless the Agency is compensated for the forgone receipts.To solve this problem, the new regulation provides that «a special contribution from the Community, distinct from the basic subsidy, shall be allocated every year to the Agency. This contribution shall be used exclusively by the Agency to waive the fees payable».  The Director reports on the use made of this special contribution.The modification of the budgetary remarks of the line B5-312Political visibility and budgetary transparency require that budgetary remarks of the line B5-312 be changed to indicate that the total subsidy includes a special contribution of EUR1 million for fee waivers distinct from the basic subsidy.  It could then be envisaged transferring EUR1 million from the line B5-313 Normalisation to the EMEA subsidy line B5-312.4. B7-547:"Interim civilian administrations"Support to bodies set up by the international community after conflicts either to take charge of the interim civilian administration of certain regions or to implement peace agreements.The Commission has proposed a Council regulation to establish a first pillar legal basis for the financing of the UN interim civilian administration in Kosovo (UNMIK) and the Office of the High Representative in Bosnia and Herzegovina (OHR).The new regulation is likely to be adopted in May. It is proposed that the necessary budget line be created with a token entry (B7-547 - "Interim civilian administrations") in this Amending Budget with a reference to the forthcoming legal basis in the remarks.The Commission firmly believes the proposed UNMIK operation to be a crucial element for the reconstruction of Kosovo.  To avoid a period of legal vacuum between the expiry of the current CFSP joint action on 30 April and the adoption of the Amending Budget, it was agreed during the budgetary Trialogue meeting on 12 April that the Council would urgently take the necessary steps to allow for the continued temporary financing from the CFSP budget chapter B8-01 (Article B8-012, Conflict resolution).5. Proposal to create a Rapid Reaction Facility (Line B7-671)As proposed also in the 2001 PDB, it is proposed to create in the 2000 Budget a new article B7-671:"Rapid Reaction Facility" accompanied by an article B7-671A.  Pending the adoption of a legal basis that the Commission will shortly be proposing, only a token entry is put on these lines. If necessary, this budget article could be provisioned through a transfer.On the basis of the provisions of the Treaty on European Union, the guiding principles agreed at the European Council of Cologne and the conclusions of the European Council of Helsinki, enhancement and better coordination of the response of the European Union's non-military instruments to situations of crisis have come to the forefront of European Community concerns.An Action Plan, approved by the Helsinki European Council, outlines the most important measures that the European Union will consider in order to develop a rapid reaction capability in the field of crisis management and crisis prevention by using non-military instruments.The Action Plan provides for the setting up of quick-release financing mechanisms such as the creation by the Commission of a Rapid Reaction Facility designed to accelerate the provision of finance to support EU activities world-wide, to contribute to operations run by international organisations and to fund NGO activities as appropriate.Current Community procedures do not, however, necessarily provide for the urgent release of funds in extremely short periods of time. Nevertheless, the experience of the European Community Humanitarian Office (ECHO) shows that urgent provision of financial assistance is possible on the basis of appropriate regulations.The Rapid Reaction Facility, consisting of a new budgetary article and supported by the appropriate administrative arrangements within the Commission, is intended to enable the required quick release of funds for urgent and unpredictable activities related to crisis management operations.Rapidity and Accountability are conditions sine-qua-non for such a mechanism that should provide for the Commission to decide on the appropriate procedure for making possible urgent interventions with a cost ceiling of EUR12 million for each operation.2. STATEMENT OF REVENUE&gt;TABLE POSITION&gt;TITLE 1 -- OWN RESOURCESCHAPTER 1 2 --  CUSTOMS DUTIES AND OTHER DUTIES REFERRED TO IN ARTICLE 2(1)(B) OF DECISION 94/728/EC, EURATOMArticle 1 2 0 -- Customs duties and other duties referred to in Article 2(1)(b) of Decision 94/728/EC, Euratom&gt;TABLE POSITION&gt;Council Decision 94/728/EC, Euratom of 31 October 1994 on the system of the Communities' own resources (OJ L 293, 12.11.1994, p. 9), and in particular Article 2(1)(b) thereof.The assignment of customs duties as own resources to the financing of common expenditure is the logical consequence of the free movement of goods within the Community.&gt;TABLE POSITION&gt;CHAPTER 1 3 --  OWN RESOURCES ACCRUING FROM VALUE ADDED TAX PURSUANT TO ARTICLE 2(1)(C) OF DECISION 94/728/EC, EURATOMArticle 1 3 0 -- Own resources accruing from value added tax pursuant to Article 2(1)(c) of Decision 94/728/EC, Euratom&gt;TABLE POSITION&gt;Council Decision 94/728/EC, Euratom of 31 October 1994 on the system of the Communities' own resources (OJ L 293, 12.11.1994, p. 9), and in particular Article 2(1)(c) thereof.If account is taken of the capped VAT bases and of the compensation arrangements for the United Kingdom, own resources accruing from value added tax are as follows at the uniform rate (0,87662 %).&gt;TABLE POSITION&gt;CHAPTER 1 4 --  OWN RESOURCES BASED ON GROSS NATIONAL PRODUCT PURSUANT TO ARTICLE 2(1)(D) AND THE FIRST SUBPARAGRAPH OF ARTICLE 6 OF DECISION 94/728/EC, EURATOMArticle 1 4 0 -- Own resources based on gross national product pursuant to Article 2(1)(d) and the first subparagraph of Article 6 of Decision 94/728/EC, EuratomItem 1 4 0 0 -- Own resources based on gross national product pursuant to Article 2(1)(d) of Decision 94/728/EC, Euratom, with the exception of those corresponding to the European Agricultural Guidance and Guarantee Fund Guarantee Section monetary reserve, the reserve for loan guarantees and the reserve for emergency aid&gt;TABLE POSITION&gt;Council Decision 94/728/EC, Euratom of 31 October 1994 on the system of the Communities' own resources (OJ L 293, 12.11.1994, p. 9), and in particular Article 2(1)(d) thereof.The rate, excluding the EAGGF Guarantee Section monetary reserve, the loan guarantee reserve and the emergency aid reserve, to be applied to Member States' gross national product for this financial year is 0,4454 %.&gt;TABLE POSITION&gt;Item 1 4 0 1 -- Own resources based on gross national product pursuant to Article 2(1)(d) and the first subparagraph of Article 6 of Decision 94/728/EC, Euratom, corresponding to the European Agricultural Guidance and Guarantee Fund Guarantee Section monetary reserve&gt;TABLE POSITION&gt;Council Decision 94/728/EC, Euratom of 31 October 1994 on the system of the Communities' own resources (OJ L 293, 12.11.1994, p. 9), and in particular Article 2(1)(d) and the first subparagraph of Article 6 thereof.The provisional amount is produced by applying a rate of 0,006 % to Member States' gross national product.The breakdown of payments is as follows:&gt;TABLE POSITION&gt;However, the amount actually to be paid will be limited to the amount of the transfer from Chapter B1-6 0 of the statement of expenditure of Section III «Commission», intended for the monetary reserve.Item 1 4 0 2 -- Own resources based on gross national product pursuant to Article 2(1)(d) of Decision 94/728/EC, Euratom, corresponding to the reserve for loans and loan guarantees&gt;TABLE POSITION&gt;Council Decision 94/728/EC, Euratom of 31 October 1994 on the system of the Communities' own resources (OJ L 293, 12.11.1994, p. 9), and in particular Article 2(1)(d) thereof.Council Regulation (EC, Euratom) No 2728/94 of 31 October 1994 establishing a Guarantee Fund for external actions (OJ L 293, 12.11.1994, p. 1), as last amended by Regulation (EC, Euratom) No 1149/1999 (OJ L 139, 2.6.1999, p. 1).Council Regulation (EC, Euratom) No 2729/94 of 31 October 1994 amending Regulation (EEC, Euratom) No 1552/89 implementing Decision 88/376/EEC, Euratom on the system of the Communities' own resources (OJ L 293, 12.11.1994, p. 5).Council Regulation (ECSC, EC, Euratom) No 2730/94 of 31 October 1994 amending the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities (OJ L 293, 12.11.1994, p. 7).Council Decision 94/729/EC of 31 October 1994 on budgetary discipline (OJ L 293, 12.11.1994, p. 14).&gt;TABLE POSITION&gt;Item 1 4 0 3 -- Own resources based on gross national product pursuant to Article 2(1)(d) of Decision 94/728/EC, Euratom, corresponding to the emergency aid reserve&gt;TABLE POSITION&gt;Conclusions of the Edinburgh European Council of 11 and 12 December 1992 concerning the creation of a reserve for emergency aid.Council Regulation (EC, Euratom) No 2729/94 of 31 October 1994 amending Regulation (EEC, Euratom) No 1552/89 implementing Decision 88/376/EEC, Euratom on the system of the Communities' own resources (OJ L 293, 12.11.1994, p. 5).Council Regulation (ECSC, EC, Euratom) No 2730/94 of 31 October 1994 amending the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities (OJ L 293, 12.11.1994, p. 7).Council Decision 94/729/EC of 31 October 1994 on budgetary discipline (OJ L 293, 12.11.1994, p. 14).When the Commission considers it necessary to draw on this reserve, it convenes a three-way meeting as soon as possible in order to obtain the agreement of the two arms of the budgetary authority on the need to use the reserve and on the amount required. The reserve is drawn on by means of a transfer to the budget headings concerned.&gt;TABLE POSITION&gt;CHAPTER 1 5 --  CORRECTION OF BUDGETARY IMBALANCESArticle 1 5 0 -- Correction of budgetary imbalances granted to the United Kingdom in accordance with Articles 4 and 5 of Decision 94/728/EC, Euratom&gt;TABLE POSITION&gt;Council Decision 94/728/EC, Euratom of 31 October 1994 on the system of the Communities' own resources (OJ L 293, 12.11.1994, p. 9), and in particular Articles 4 and 5 thereof.The breakdown of the correction is as follows:&gt;TABLE POSITION&gt;&gt;TABLE POSITION&gt;&gt;TABLE POSITION&gt;CHAPTER 1 9 --  COSTS INCURRED BY THE MEMBER STATES IN THE COLLECTION OF OWN RESOURCESArticle 1 9 0 -- Costs incurred by the Member States in the collection of own resources&gt;TABLE POSITION&gt;Council Decision 94/728/EC, Euratom of 31 October 1994 on the system of the Communities' own resources (OJ L 293, 12.11.1994, p. 9), and in particular Article 2(3) thereof.&gt;TABLE POSITION&gt;TITLE 3 -- SURPLUSES AVAILABLECHAPTER 3 0 --  SURPLUS AVAILABLE FROM THE PRECEDING FINANCIAL YEARArticle 3 0 0 -- Surplus available from the preceding financial year&gt;TABLE POSITION&gt;Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities (OJ L 356, 31.12.1977, p. 1), as last amended by Regulation (EC, ECSC, Euratom) No 2673/1999 (OJ L 326, 18.12.1999, p. 1).Council Regulation (EEC, Euratom) No 1552/89 of 29 May 1989 implementing Decision 88/376/EEC, Euratom on the system of the Communities' own resources (OJ L 155, 7.6.1989, p. 1), as last amended by Regulation (Euratom, EC) No 1355/96 (OJ L 175, 13.7.1996, p. 3).Article 32 of the Financial Regulation states that the balance from each financial year, whether surplus or deficit, is entered as revenue expenditure in the budget of the subsequent financial year.The relevant estimates of such revenue or expenditure are entered in the budget during the budget procedure and, where appropriate, in a letter of amendment submitted pursuant to Article 14 of the Financial Regulation. They are drawn up in accordance with the principles set out in Article 15 of Regulation (EEC, Euratom) No 1552/89, as last amended by Regulation (Euratom, EC) No 1355/96 (OJ L 175, 13.7.1996, p. 3).After the closure of the accounts for each financial year, any discrepancy in relation to the estimates is entered in the budget for the following financial year through a supplementary and/or amending budget.A deficit is entered in Chapter B0-3 0 of the statement of expenditure of Section III «Commission».CHAPTER 3 4 --  SURPLUS OF OWN RESOURCES BASED ON GROSS NATIONAL PRODUCT AS A RESULT OF THE NON-PARTICIPATION BY CERTAIN MEMBER STATES IN THE COMMUNITY JUSTICE AND HOME AFFAIRS POLICYArticle 3 4 0 --  Adjustment for the impact of non-participation by certain Member States in Community justice and home affairs policyItem 3 4 0 0 --  Adjustment for the 2000 financial year for the impact of non-participation by certain Member States in Community justice and home affairs policy&gt;TABLE POSITION&gt;The Protocols annexed to the Amsterdam Treaty on the position of Denmark and on the positions of the United Kingdom and Ireland in relation to the justice and home affairs policy, in particular Articles 3 and 5 thereof, respectively.CHAPTER 3 5 --  SURPLUS OF OWN RESOURCES BASED ON GROSS NATIONAL PRODUCT RESULTING FROM THE DEFINITIVE CALCULATION OF THE FINANCING OF THE CORRECTION OF BUDGETARY IMBALANCES FOR THE UNITED KINGDOMArticle 3 5 9 -- Result of the definitive calculation of the financing of the correction of budgetary imbalances for the United Kingdom in respect of 1991 and subsequent financial yearsItem 3 5 9 6 -- Result of the definitive calculation of the financing of the correction of budgetary imbalances for the United Kingdom in respect of 1996&gt;TABLE POSITION&gt;New itemResult of the definitive calculation of the financing of the correction of budgetary imbalances for the United Kingdom in respect of 1996.&gt;TABLE POSITION&gt;PARTB -- B. FINANCING OF THE GENERAL BUDGETAppropriations to be covered during the 2000 financial year pursuant to Article 1 of Decision 94/728/EC, Euratom of 31 October 1994 on the system of the Communities' own resources and Article 10 of the Treaty of 22 April 1970 amending certain budgetary provisions of the Treaties establishing the European Communities and of the Treaty establishing a single Council and a single Commission of the European CommunitiesDescription  //  AmountExpenditure  //       A. SectionIII «Commission» (Part B)  //       1. EAGGF Guarantee Section (Subsection B1)  //  41 493 900 0002. Structural operations, structural and cohesion expenditure, financial mechanism, other agricultural and regional operations, transport and fisheries (Subsection B2)  //  31 956 998 2443. Training, youth, culture, audiovisual media, information and other social operations (Subsection B3)  //  718 545 0004. Energy, Euratom nuclear safeguards and environment (Subsection B4)  //  188 200 0005. Consumer protection, internal market, industry and trans-European networks (Subsection B5)  //  1 012 062 0006. Research and technological development (Subsection B6)  //  3 600 000 0007. External action (Subsection B7)  //  5 480 572 2798. Common foreign and security policy (Subsection B8)  //  30 000 0009. Guarantees, reserves and compensation (Subsection B0)  //  203 000 000Section III Part B -- Sub-total  //  84 683 277 523B. Section III «Commission» (Part A)  //  3 069 303 410Section III -- Sub-total  //  87 752 580 933C. Sections I, II, IV, V, VI, VII and VIII (other institutions)  //  1 634 370 360Total expenditure  //  89 386 951 293Revenue  //       Miscellaneous revenue (Titles 4 to 9)  //  674 114 692Surplus available from the preceding financial year  //  3 209 100 914Surplus of own resources accruing from VAT and own resources based on GNP relating to previous financial years  //  p.m.Surplus of own resources accruing from the EAGGF monetary reserve  //  p.m.Total revenue  //  3 883 215 606Appropriations to be covered by the own resources referred to in Article 2 of Decision 94/728/EC, Euratom  //  85 503 735 687Expenditure to be financed by the own resources referred to in Article 2 of Decision 94/728/EC, Euratom  //  85 503 735 687Net amount (=90 %) of customs duties, agricultural levies and sugar and isoglucose levies (see Table 7)  //  -13 703 670 000Amount remaining to be financed  //  71 800 065 687&gt;TABLE POSITION&gt;&gt;TABLE POSITION&gt;Amount remaining to be financed by additional resource:71 800 065 687 euros - 34 048 587 740 euros = 37 751 477 947 euros.&gt;TABLE POSITION&gt;&gt;TABLE POSITION&gt;Own resources ceiling (% of GNP): 1,27 %.&gt;TABLE POSITION&gt;&gt;TABLE POSITION&gt;&gt;TABLE POSITION&gt;&gt;TABLE POSITION&gt;Calculation of Member States' sharesGermany:(9 809 216 000)/(38 840 786 500 - 7 529 532 000) × 3 353 279 436 × (2)/(3 )=700 345 458Other countries (for example, Belgium):(1 017 440 000)/(38 840 786 500 - 7 529 532 000 - 9 809 216 000) × (3 353 279 436 - 700 345 458)/1=125 532 337VAT rate frozen by United Kingdom correction (for example, Belgium):(125 532 337)/(1 017 440 000)=0,123380579859770Gross amount:0,123380580 × 38 840 786 500=4 792 198 761&gt;TABLE POSITION&gt;3. STATEMENT OF EXPENDITURESUBSECTION B1 -- EUROPEAN AGRICULTURAL GUIDANCE AND GUARANTEE FUND, GUARANTEE SECTIONTITLE B1-1 -- PLANT PRODUCTSCHAPTER B1-1 5 --  FRUIT AND VEGETABLESArticle B1-1 5 0 -- Fresh fruit and vegetablesAdd the following remarks :Council Regulation (EC) No 2200/96 of 28 October 1996 on the common organisation of the market in fruit and vegetables (OJ L 297, 21.11.1996, p. 1), as last amended by Regulation (EC) No 1257/99 (OJ L 160, 26.6.1999, p. 80).Item B1-1 5 0 9 -- Other interventionAdd the following remarks :Council Regulation (EC) No 2200/96 of 28 October 1996 on the common organisation of the market in fruit and vegetables (OJ L 297, 21.11.1996, p. 1), as last amended by Regulation (EC) No 1257/99 (OJ L 160, 26.6.1999), and in particular Articles 52(1) and (2) thereof.TITLE B1-3 -- ANCILLARY EXPENDITURECHAPTER B1-3 3 --  VETERINARY AND PLANT HEALTH MEASURESArticle B1-3 3 3 -- Plant health measuresDelete the following paragraph :A maximum amount of EUR 40 000 may cover justified expenditure on studies, meetings of experts, information and publications directly linked to the achievement of the objectives of the measure, of which they form an integral part.&gt;TABLE POSITION&gt;TITLE B1-4 -- RURAL DEVELOPMENTCHAPTER B1-4 0 --  RURAL DEVELOPMENTAdd the following remarks :Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations (OJ L 160, 26.6.1999, p. 80).Article B1-4 0 7 -- ForestryItem B1-4 0 7 0 -- Forestry (new system, Article 31)Amend the remarks as follows (in bold italics) :Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations (OJ L 160, 26.6.1999, p. 80), and in particular Article 31 thereof.Item B1-4 0 7 1 -- Forestry (new system, other)Amend the remarks as follows (in bold italics) :Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations (OJ L 160, 26.6.1999, p. 80), and in particular Articles 30 and 32 thereof.Article B1-4 0 8 -- Promoting the adaptation and the development of rural areasItem B1-4 0 8 0 -- Main agriculture-related measuresNew item&gt;TABLE POSITION&gt;Amend the remarks (of former Article 408) as follows (in bold italics) :Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations (OJ L 160, 26.6.1999, p. 80), and in particular the first, second, third, fourth, seventh, eighth, ninth and fourteenth indents of Article 33 thereof.Item B1-4 0 8 1 -- Other measuresNew item&gt;TABLE POSITION&gt;Amend the remarks (of former Article 408) as follows (in bold italics):Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations (OJ L 160, 26.6.1999, p. 80), and in particular the indents of Articles 33 thereof which are not covered by Item B1-4080.Article B1-4 0 9 -- OtherItem B1-4 0 9 2 -- Transitional measuresNew item&gt;TABLE POSITION&gt;Add the following remarks :Commission Regulation (EC) No 2603/1999 of 9 December 1999 laying down rules for the transition to the rural development support provided for by Council Regulation (EC) No 1257/1999, and in particular Article 4(2) thereof.CHAPTER B1-4 1 -- CLEARANCE OF PREVIOUS YEARS' ACCOUNTS AND REDUCTION/SUSPENSION OF ADVANCES WITH REGARD TO RURAL DEVELOPMENTNew chapterArticle B1-4 1 0 -- Clearance of previous years' accounts and reduction/suspension of advances with regard to rural developmentNew articleItem B1-4 1 0 0 -- Clearance of previous years' accounts with regard to rural developmentNew item&gt;TABLE POSITION&gt;Add the following remarks  (from item 3700) :Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities (OJ L 356, 31.12.1977, p. 1), as last amended by Regulation (EC, ECSC, Euratom) No 2673/1999 (OJ L 326, 18.12.1999, p. 1)Council Regulation No 1258/1999 of 17 May 1999 on the financing of the common agricultural policy (OJ L 160, 16.6.1999, p. 103).This item is intended to cover the application of Article 102 of the Financial Regulation, under which the outcome of the decisions referred to in Articles 7(3) and (4) and 8(2) of Regulation (EC) No 1258/1999 must be charged as expenditure to the financial year during which the accounts are cleared.Item B1-4 1 0 1 -- Reduction/suspension of advances with regard to rural developmentNew item&gt;TABLE POSITION&gt;Add the following remarks  (from item 3701) :Council Decision 94/729/EC of 31 October 1994 on budgetary discipline (OJ L 293, 12.11.1994, p. 14), and in particular Article 13 thereof, which lays down that, in the event of manifest non-compliance with the rules, the Commission may reduce or provisionally suspend the monthly advances to Member States, without prejudice to the decisions taken in connection with the clearance of accounts.SUBSECTION B2 -- STRUCTURAL OPERATIONS, STRUCTURAL AND COHESION EXPENDITURE, FINANCIAL MECHANISM, OTHER AGRICULTURAL AND REGIONAL OPERATIONS, TRANSPORT AND FISHERIESTITLE B2-1 -- STRUCTURAL FUNDSCHAPTER B2-1 6 --  INNOVATORY MEASURES AND TECHNICAL ASSISTANCEArticle B2-1 6 4 -- Completion of earlier programmesAdd the following remarks :Council Regulation (EEC) No 270/79 of 6 February 1979 on the development of agricultural advisory services in Italy (OJ L 38, 14.2.1979, p. 6), as last amended by Regulation (EEC) No 1760/87 (OJ L 167, 26.6.1987, p. 1).Council Regulation (EEC) No 458/80 of 18 February 1980 on collective projects for the restructuring of vineyards (OJ L 57, 29.2.1980, p. 27), as last amended by Regulation (EEC) No 596/91 (OJ L 67, 14.3.1991, p. 16).SUBSECTION B5 -- CONSUMER PROTECTION, INTERNAL MARKET, INDUSTRY AND TRANS-EUROPEAN NETWORKSTITLE B5-3 -- INTERNAL MARKETCHAPTER B5-3 1 --  STANDARDISATION AND EVALUATION MEASURESArticle B5-3 1 2 -- Subsidy for the European Agency for the Evaluation of Medicinal ProductsAdd the following remarks :Regulation (EC) No 141/2000 of the European Parliament and of the Council of 16 December 1999 on orphan medicinal products (OJ L 18, 21.1.2000).It also covers the special contribution, distinct from that provided for in Article 57 of Regulation (EEC) No 2309/93, which the Agency uses exclusively to waive, in part or in total, all the fees due for an orphan medicinal product. This special contribution is limited to EUR 1 million.SUBSECTION B7 -- EXTERNAL ACTIONSTITLE B7-5 -- COOPERATION WITH COUNTRIES OF CENTRAL AND EASTERN EUROPE, THE BALKANS, THE NEW INDEPENDANT STATES AND MONGOLIACHAPTER B7-5 4 --  COOPERATION WITH THE BALKAN COUNTRIESArticle B7-5 4 7 -- Interim civilian administrations&gt;TABLE POSITION&gt;New articleAdd the following remarksProposal for a Council Regulation, submitted by the Commission on 21 February 2000, on support to bodies set up by the international community after conflicts either to take charge of the interim civilian administration of certain regions or to implement peace agreements (COM(2000) 95 final).In Kosovo and in Bosnia-Herzegovina, the international community has set up bodies to take charge of the interim civilian administration and to implement peace agreements, namely the interim UN mission in Kosovo (UNMIK) and the Office of the High Representative in Bosnia-Herzegovina (OHR). The timely establishment and proper functioning of these bodies constitute important factors in maximising the effectiveness of Community aid under this policy. A legal framework must therefore be laid down to cover Community financial assistance towards the operating costs of the two bodies. The financing takes the form of a grant to UNMIK's and OHR's budgets.&gt;TABLE POSITION&gt;TITLE B7-6 -- OTHER COOPERATION MEASURESCHAPTER B7-6 7 -- Rapid reaction facilityArticle B7-6 7 1 -- Rapid reaction facility&gt;TABLE POSITION&gt;Add the following remarks Proposal for a Council Regulation concerning the creation of a Rapid Reaction Facility (COM (2000) 119, adopted by the Commission on 11 April 2000).This Regulation is intended to provide the legal framework to act in order to prevent crises from spreading or escalating into armed conflicts in order to foster sustainable economic and social development.The appropriations are intended to cover notably:--funding of all non-military activities aimed at counteracting or resolving emerging crisis situations and serious threats  or outbreaks of conflict;--all logistical measures necessary for the planning, implementation, monitoring and auditing of such interventions,  including information and communication management, technical assistance and training, the purchase and/or delivery of essential products and equipment, safe transport and all administrative expenditure related to such measures;--measures necessary to strengthen the Community's co-ordination with Member States and other donor countries, international organisations, non-government organisations and their representatives.If the above actions are eligible for funding under Council Regulation No 1257/96 of 20 June 1996 concerning  humanitarian aid, they shall be financed under this Regulation. In specific security and crisis management circumstances, the Commission may decide that intervention under the Rapid Reaction Facility is more appropriate if combined with action under the Council Regulation concerning humanitarian aid.