Communication from the Commission to the Council and the European Parliament - Technical adjustment of the financial perspective for 2002  in line with movements in GNP and prices  (Paragraph 15 of the Interinstitutional Agreement of 6 May 1999 on budgetary discipline and improvement of the budgetary procedure)
Date: 2001-02-20
Institutions: European Commission
Subjects: budgetary discipline (EU), budgetary procedure, gross national product, multiannual financial framework, price fluctuation

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 20.02.2001
COM(2001)97 final

COMMUNICATION FROM THE COMMISSION
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT

Technical adjustment of the financial perspective for 2002
in line with movements in GNP and prices

(Paragraph 15 of the Interinstitutional Agreement of 6 May 1999 on budgetary
discipline and improvement of the budgetary procedure)

COMMUNICATION FROM THE COMMISSION
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT

Technical adjustment of the financial perspective for 2002
in line with movements in GNP and prices

(Paragraph 15 of the Interinstitutional Agreement of 6 May 1999 on budgetary
discipline and improvement of the budgetary procedure)

1.

the
The financial perspective table for 2000-06 forms an integral part of
Interinstitutional Agreement of 6 May 1999 on budgetary discipline and
improvement of the budgetary procedure1.

the Interinstitutional Agreement

the
Paragraph 15 of
Commission will, ahead of the budgetary procedure for year n+1, make a technical
adjustment to the financial perspective in line with movements in the EU's gross
national product (GNP) and prices.

states that each year

The purpose of this communication is to present to the budgetary authority the result
of this technical adjustment for 2002.

2.

Table 1 shows the adjusted financial perspective at 2002 prices.

The overall ceiling on appropriations for commitments for 2002 comes to
million, equivalent to 1.09% of GNP.

€

99 802

The corresponding ceiling on the appropriations for payments for EU 15 comes to
€

100 078 million, i.e. around 1.10% of GNP.

the overall ceiling on
Allowing for the amount
104 475 million (around 1.14% of GNP for EU 15),
appropriations for payments is
which, on the basis of current economic forecasts, leaves a margin beneath the own
resources ceiling of

left available for accession,

11 442 million.

€

€

For 2000 and 2001, the size of the margin has been updated from the previous
technical adjustments using the most recent GNP estimates so that comparisons can
be made over a number of years. On the other hand, the ceilings in commitments and
payments resulting from the adjustments made do not change.

Table 2 sets out, for reference, the adjusted financial framework for EU-21 at 2002
prices. The GNP figure used in the table is that of the Union enlarged to include six
new Member States (Poland, Czech Republic, Hungary, Estonia, Slovenia, Cyprus).

the GDP
As an estimate of GNP is not available for each of these countries,
aggregate has been used for them here on the basis of the most recent figures and
forecasts. The total GDP for these countries is put at

379 billion in 2002.

€

1

OJ C 172, 18 June 1999, p. 1.

2

3.

Table 3 presents the macroeconomic parameters used for this adjustment exercise.
They are based on data drawn up by Eurostat and on the most recent forecasts made
by the Commission in conjunction with the national experts (budget forecasts,
autumn 2000)

These figures and forecasts are based on the European System of Accounts set up in
1979 (ESA 79).

Article 8 of the regulation2 setting up the new ESA 95 system stipulates that the old
ESA 79 system will continue to apply for budgetary and own resources purposes for
as long as the then existing Own Resources Decision remains in force. A new Own
Resources Decision3 was approved by the Council on 29 September 2000. It will
enter into force once it has been adopted by all the Member States in accordance with
their respective constitutional rules. At that point the new accounting system will
apply for budgetary purposes. In particular, in accordance with Article 3 of the
Decision, the own resources ceiling set at 1.27% of GNP will be recalculated so that
the introduction of the new accounting system does not affect the absolute amount of
own resources available. This new percentage will, when the time comes, be
incorporated into the financial perspective table for 2002 and subsequent years.

4.

The adjustment is calculated by applying the following deflators to the financial
perspective (at 1999 prices):

–

–

A cumulative deflator of 6.12% for the period 2000-2002 to the ceiling for
heading 1 and to the figure for the Structural Funds in heading 2, in accordance
with paragraph 15 of the Interinstitutional Agreement.

The cumulative GNP deflator in euros for 2000-2002 (6.64%) to the other
ceilings, apart from subheading 6 (Monetary reserve), which is expressed in
current prices.

As regards payments, the adjustment is based on the appropriations for payments
estimated for each heading when the financial perspective was drawn up (1999
prices). The method of calculation is set out in the following table:

2

3

Council Regulation (EC) 2223/96 of 25 June 1996, OJ L 310, 30 November 1996, p.1.
Council Decision 2000/597/EC, Euratom of 29 September 2000, OJ L 253, 7 October 2000, p.42.

3

Approps for
payments 2002 at
1999 prices
€
(
million)

Cumulative
deflator
2000-2001
(%)

Approps for
payments
2002 at 2002
prices
million)

€

(

Appropriations
(heading 1)

for payments

43 900

6.12

46 587

Appropriations
(heading 2 - Structural Funds)

for payments

29 390

6.12

31 189

Appropriations
(heading 5)

for payments

4 700

6.64

5 012

for

Approps
payments
(heading 6)

Monetary
reserve

Other reserves

appropriations
(heading

for
Other
payments
-
Cohesion Fund - + heading 3 +
heading 4 + heading 7

2

250

400

15 580

0

6.64

6.64

250

426

16 614

Total appropriations for payments

100 078

As regards the appropriations for payments available for accession, those coming
under heading 1 have been adjusted by means of a 6.12% cumulative deflator. For
"other expenditure", a distinction is made between payments
structural
operations, to which the cumulative 6.12% deflator is applied, and payments under
headings 3 and 5, for which the cumulative 6.64% deflator has been used.

for

In heading 8 (Enlargement),

The indicative table for the financial framework for EU-21 (see Table 2) has been
adjusted in the same way.
the commitment
appropriations for agriculture and structural operations have been adjusted by means
of the cumulative 6.12% deflator and those for internal policies and administration
by means of the cumulative 6.64% deflator. Payments under heading 8 have been
adjusted using the same method of calculation as for the payments available for
accession in the financial perspective.

The agricultural guideline has been calculated in accordance with Article 3 of the
new Council Regulation on budgetary discipline4 (see Table 4).

The figures for sugar and isoglucose levies, food aid refunds and ACP sugar refunds
are based at this stage on the amounts entered in the 2001 budget. In accordance with

Council Regulation (EC) No 2040/2000 of 26 September 2000, OJ L 224, 29 September 2000, p.27.

4

5.

4

6.

7.

5

6

7

the Decision on budgetary discipline, the final level of these specific items in the
guideline will be fixed when the preliminary draft 2002 budget is presented.

In 2002 the agricultural guideline is provisionally

€

51 078 million5.

In the case of heading 5, a footnote to the financial perspective states that the figures
for pensions included under the ceiling for this heading are to be calculated net of
staff contributions to the pension scheme, up to a maximum of
1 100 million (1999
prices) for the period 2000-2006. As stated in the Commission communication on the
technical adjustment for 20006, this provision should be interpreted as imposing a
dual limit on the amounts deducted from expenditure on pensions when applying the
ceiling for the heading:

€

–

–

this amount may not exceed the contributions actually entered as budget
revenue in any one year. For 2002 these contributions are provisionally
estimated7 at
168 million at 1999 prices with the cumulative
deflator of 6.64% applied for the adjustment to the ceiling for the heading;

179 million, i.e.

€

€

the accumulated total of deductions for the period 2000-2006 may not exceed
€
157 million a year
1 100 million at 1999 prices, equivalent to an average of
€
167 million at 2002 prices).

€

(

€

limit - i.e. a
As administrative expenditure is, as a rule, recurrent, the lowest
167 million at current prices for 2002 - should be adopted each year to
maximum of
avoid using a margin at the start of the period which will no longer be fully available
afterwards.

The fifth subparagraph of paragraph 10 of the Interinstitutional Agreement states that
information relating to operations not
included in the general budget and the
foreseeable development of the various categories of own resources is to be set out in
tables, as an indication, and updated annually when the technical adjustment is made
to the financial perspective.

This information, updated in line with the latest estimates available, is set out in
Tables 5.1 to 5.3. It covers the EDF, the ECSC operating budget and the structure of
own resources.

€

2 238 million in relation to all the expenditure which, in accordance with the Regulation
A margin of
on budgetary discipline, is included under the guideline (heading 1, the "agriculture" section of the
pre-accession aid under heading 7, the amounts left available for accession in respect of agriculture).
SEC(1999) 847 final, paragraph 6.
The rate of increase envisaged for 2002 for expenditure on remunerations has been applied to the
€
amount of contributions entered in the 2001 budget (

170.7 million).

5

8.

The Commission will present to the budgetary authority its proposal for adjustments
to the financial perspective in connection with implementation under paragraphs 16
to 18 of the Interinstitutional Agreement once the outturn figures for 2000 are
available (mid-February 2001).

6

Table 1: FINANCIAL PERSPECTIVE (EU-15) - ADJUSTED TO 2002 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

Agriculture

Pre-accession structural instrument

PHARE (applicant countries)

TOTAL APPROPRIATIONS FOR COMMITMENTS

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

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

529
1.058

1.587

93.792

91.322

1,10%

91.322

1,10%

0,17%
1,27%

2001

44.530

40.035

4.495

32.720

30.005
2.715

6.272

4.735

4.776

916

500
208

208

3.240

540
1.080

1.620

97.189

94.730

1,09%

94.730

1,09%

0,18%
1,27%

2002

46.587

41.992

4.595

32.768

29.979
2.789

6.558

4.873

5.012

676

250
213

213

3.328

555
1.109

1.664

99.802

100.078

1,10%

4.397

1.698

2.699

2002 prices
2003

46.449

41.843

4.606

32.153

29.364
2.789

6.676

4.884

5.119

426

0
213

213

3.328

555
1.109

1.664

99.035

100.795

1,08%

7.125

2.154

4.971

2004

45.377

40.761

4.616

31.420

28.738
2.682

6.793

4.895

5.225

426

0
213

213

3.328

555
1.109

1.664

97.464

97.645

1,02%

9.440

2.600

6.840

2005

44.497

39.870

4.627

31.420

28.738
2.682

6.910

4.905

5.332

426

0
213

213

3.328

555
1.109

1.664

96.818

95.789

0,97%

12.146

3.109

9.037

2006

44.209

39.572

4.637

30.969

28.292
2.677

7.038

4.916

5.439

426

0
213

213

3.328

555
1.109

1.664

96.325

95.217

0,95%

15.097

3.608

11.489

104.475

107.920

107.085

107.935

110.314

1,14%

0,13%
1,27%

1,15%

0,12%
1,27%

1,12%

0,15%
1,27%

1,10%

0,17%
1,27%

1,09%

0,18%
1,27%

€

(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),
(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
prices for the period 2000-06.

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

1 100 million at 1999

€

7

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
Agriculture
Pre-accession structural instrument
PHARE (applicant countries)
8. ENLARGEMENT
Agriculture
Structural operations
Internal policies
Administration
TOTAL APPROPRIATIONS FOR COMMITMENTS
TOTAL APPROPRIATIONS FOR PAYMENTS
ofwhich: enlargement
Appropriations for payments as % of GNP
Margin for unforeseen expenditure
Own resources ceiling

Table 2: FINANCIAL FRAMEWORK EU-21 - ADJUSTED TO 2002 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
529
1.058
1.587

93.792
91.322

1,10%
0,17%
1,27%

Current prices
2001
44.530
40.035
4.495
32.720
30.005
2.715
6.272
4.735
4.776
916
500
208
208
3.240
540
1.080
1.620

97.189
94.730

1,09%
0,18%
1,27%

2002
46.587
41.992
4.595
32.768
29.979
2.789
6.558
4.873
5.012
676
250
213
213
3.328
555
1.109
1.664
6.851
1.698
3.980
778
395
106.653
104.475
4.397
1,10%
0,17%
1,27%

2002 prices

2003
46.449
41.843
4.606
32.153
29.364
2.789
6.676
4.884
5.119
426

213
213
3.328
555
1.109
1.664
9.588
2.154
6.187
810
437
108.623
107.920
7.125
1,11%
0,16%
1,27%

2004
45.377
40.761
4.616
31.420
28.738
2.682
6.793
4.895
5.225
426

213
213
3.328
555
1.109
1.664
12.327
2.600
8.405
842
480
109.791
107.085
9.440
1,07%
0,20%
1,27%

2005
44.497
39.870
4.627
31.420
28.738
2.682
6.910
4.905
5.332
426

213
213
3.328
555
1.109
1.664
15.075
3.109
10.612
874
480
111.893
107.935
12.146
1,05%
0,22%
1,27%

2006
44.209
39.572
4.637
30.969
28.292
2.677
7.038
4.916
5.439
426

213
213
3.328
555
1.109
1.664
17.813
3.608
12.819
906
480
114.138
110.314
15.097
1,05%
0,22%
1,27%

€

(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),
(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
1999 prices for the period 2000-06.

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

1 100 million at

€

8

Table 3: GNP - FIGURES AND FORECASTS

Real growth rate (%)
-Adjustment for 1999
-Adjustment for 2000
-Adjustment for 2001
-Adjustment for 2002

GNP deflator in ecus/euros (%)

-Adjustment for 1999
-Adjustment for 2000
-Adjustment for 2001
-Adjustment for 2002

GNP at current prices (ECU/EUR billion)

-Adjustment for 1999
-Adjustment for 2000
-Adjustment for 2001
-Adjustment for 2002

1999

2000

2001

2002

3,1
1,9
1,9
2,3

2,1
2,1
2,2
2,4

2,7
3,1
3,3

1,7
2,0
2,7

3
3,1

1,8
1,8

3,1

2,0

7804,3
7714,3 8058,5
7737,4 8138,6 8533,3
7793,3 8275,0 8682,5 9127,3

Comparisonbetweendeflatorinnationalcurrencyanddeflator
ineuros
Deflators in national currency
Deflators in euros

1999

2000

2001

2002

1,4% 1,4% 1,9% 2,0%
2,4% 2,7% 1,8% 2,0%

9

Table 4: CALCULATION OF THE
AGRICULTURAL GUIDELINE FOR 2002

€

Million

2002

BASE EXPENDITURE (1995 budget)

36.394

ANNUAL GNP GROWTH RATE

1996
1997
1998
1999
2000
2001
2002

1,53%
2,49%
2,61%
2,30%
3,34%
3,13%
3,06%

Cumulativegrowthrate
74%ofcumulativegrowthrate
CORRECTEDEXPENDITURE(1995prices)

19,97%
14,78%

41.773

GNP DEFLATOR

1996
1997
1998
1999
2000
2001
2002

3,38%
2,75%
1,80%
2,43%
2,74%
1,75%
2,01%

Cumulativegrowthrate

18,12%

CORRECTEDEXPENDITURE(2002prices)

49.341

Plus
Estimatedneeds(*)for

- sugar and isoglucose levy
- food aid refunds
- ACP sugar refunds
- Subtotal

AGRICULTURAL GUIDELINE

(*) See 2001 budget.

10

1.006
25
706
1.737

51.078

TABLE 5:
INDICATIVE PROGRAMME OF EXPENDITURE NOT ENTERED IN THE GENERAL BUDGET
AND PROSPECTIVE TREND IN THE VARIOUS OWN RESOURCES

5.1. EUROPEAN DEVELOPMENT FUND (1)

Decisions (D) and Payments (P)

EUR million - current prices

2000

2001

2002

2003

2004

D

P

D

P

D

P

D

P

D

P

2005

D

P

2006
P

D

TOTAL

3875 2025 4033 2538 3500 2050 3500 3000 3500 3600 3500 3700 n.a. n.a.

(1) Commission communication COM(2000)805 final of 12.12.2000.

5.2. ECSC OPERATING BUDGET

EUR million - current prices
2000

178

2001

195

2002 (1)

135

(1) ECSC Treaty expires on 13 July 2002.

5.3. OWN RESOURCES BY CATEGORY

% of total

Traditional own resources
VAT

GNP

2000 2001 2002 2003 2004 2005 2006

17
37

46

17
35

47

13
20

67

13
21

66

13
10

76

14
12

74

14
13

73

2000 and 2001 : Budget.
2002-06: Financial perspective framework. Application of new Own Resources
Decision.

11