Communication from the Commission to the European Parliament and the Council - Annual Policy Strategy for 2004
Date: 2003-03-05
Institutions: European Commission
Subjects: Community budget, EU policy, budgetary procedure, enlargement of the Union, institutional reform, interinstitutional relations (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 5.3.2003
COM (2003) 83 final

COMMUNICATION FROM THE COMMISSION
TO THE EUROPEAN PARLIAMENT AND THE COUNCIL

Annual Policy Strategy for 2004

   
TABLE OF CONTENTS

1.

2.

3.

3.1.

3.2.

3.3.

4.

5.

6.

Introduction.................................................................................................................. 3

The State of the Union in 2004 – completing the mandate of the Prodi Commission. 4

The political priorities for 2004 : accession becomes a reality.................................... 5

The accession of ten new Member States .................................................................... 6

Stability ........................................................................................................................ 7

Sustainable growth....................................................................................................... 9

Multiannual perspectives and contribution to multiannual programming for the
European Union ......................................................................................................... 11

Selection of Initiatives for Extended Impact Assessment in the Annual Policy
Strategy for 2004........................................................................................................ 14

Human and financial resources in an enlarged Union: the global framework resulting
from the Policy Strategy for 2004.............................................................................. 15

6.1.

General framework for human resources................................................................... 15

6.1.1.

The accession of ten new Member States .................................................................. 16

6.1.2. Contribution to a central pool for priorities 2 and 3................................................... 17

6.1.3.

Total Human Resources available for the three priorities.......................................... 18

6.1.4. Needs linked to the implementation of the Reform ................................................... 18

6.1.5.

Situation of Heading 5 ............................................................................................... 19

6.1.6. Reallocation of resources freed by externalisation of activities................................. 20

6.1.7.

Situation of the Directorate-generals in the external relations field .......................... 21

6.2.

Financial resources: a challenging framework for 2004 ............................................ 21

6.2.1.

Financial implications of policy priorities: Accession............................................... 24

6.2.2.

Financial implications of policy priorities: Stability.................................................. 26

6.2.3.

Financial implications of policy priorities: Sustainable growth ................................ 27

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1. 

INTRODUCTION

The  Annual  Policy  Strategy  adopted  by  the  Commission  is  the  first  step  in  the
strategic planning and programming cycle introduced in 2001. It seeks to define the
Commission's  policy  priorities  and  ensure  that  there  is  the  right  match  between
policy initiatives and the corresponding resources to deliver the  priorities identified
for 2004.

The Annual Policy Strategy for 2004 has the following objectives:

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to establish the policy priorities for 2004;

to  identify  the  key  policy  initiatives  contributing  to  the  realisation  of  the
targeted priorities;

to decide on the budgetary orientations for the year concerned, taking account,
on  the  one  hand,  of  the  need  to  ensure  that  priority  initiatives  receive  the
necessary resources and, on the other, of resource needs for on-going business
and  major  changes  in  objectives,  taking  into  account  the  constraints  of  the
financial perspectives;

to provide guidelines for financial programming;

to  identify  which  extended  impact  assessments  should  be  conducted  on
proposals to be tabled in 2004;

to contribute to the preparation of multiannual programming for the European
Union for the period 2004/2006.

The  Annual  Policy  Strategy  sets  the  framework  for  the  budgetary  and  legislative
cycle. Its final developments will coincide with the adoption of the budget on the one
hand, with the presentation of the Commission Legislative and Work Programme on
the other.

The steps following the adoption of the Annual Policy Strategy are the preparation of
the  preliminary  draft  budget  and  the  inter-institutional  dialogue  on  the  basis  of  the
orientations  decided  in  the  Annual  Policy  Strategy.  The  Commission  presents  its
Annual  Policy  Strategy  to  the  European  Parliament  and  to  the  Council  as  soon  as
possible  after  its  adoption  in  February.  Subsequently  the  President  of  the
Commission  will  introduce  a  debate  on  the  Annual  Policy  Strategy  in  the  General
Affairs Council and at the European Parliament's plenary session.

Over  the  following  three  months,  the  Commission  undertakes  a  dialogue  with  the
Parliament  and  the  Council  on  its  Annual  Policy  Strategy.  For  this,  the
Commissioners  engage  in  a  bilateral  dialogue  with  the  European  Parliament
committees  concerned  with  the  implementation  of  the  Annual  Policy  Strategy's
priorities. The Commission engages in a similar dialogue with the Council and with
the  two  Member  States  that  hold  the  Presidency  of  the  Council  during  the  period
covered by the Annual Policy Strategy. This year, for the first time, the Commission
will seek to extend this dialogue to cover the outlook for the European Union in the
period  2004-2006,  in  order  to  contribute  to  the  first  multiannual  political

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programming of the European Union. The Commission is examining with the other
institutions,  in  the  framework  of  the  ongoing  discussion  on  the  Interinstitutional
Agreement,  how  this  new  style  longer  term  programming  could  be  implemented
satisfactorily for all actors concerned.

In September, the Commission prepares for the European Parliament and the Council
a stocktaking document to review the results of the above dialogue. This document
lists  the  main  legislative  proposals  that  the  Commission  intends  to  introduce  in  its
Legislative and Work Programme and, if  necessary, update the policy priorities for
the following year, and review possible implications in terms of resources. The cycle
is  completed  with  the  adoption  of  the  Legislative  and  Work  Programme,  by  which
the  Commission,  on  the  basis  of  the  budgetary  process  and  the  results  of  the
interinstitutional dialogue, announces the actions it intends to take forward over the
coming year. The whole cycle forms then the basis for the operational programming
done by the Directorates-General and services, which translate the political priorities
into  their  Annual  Management  Plans.  The  execution  of  these  Annual  Management
plans is then reported in the Annual Activity Reports. Their Synthesis is adopted by
the Commission and communicated to the European Parliament, the Council and the
Court of Auditors.

2. 

THE  STATE  OF  THE  UNION  IN  2004  –  COMPLETING  THE  MANDATE  OF  THE  PRODI
COMMISSION.

a)  2004  is  a  year  of  historical  importance  for  the  European  Union.  It  will  be
marked by 3 major events:

(cid:1)  Subject to the completion of the Accession Treaty ratification process, on 1 May
2004,  Cyprus,  the  Czech  Republic,  Estonia,  Hungary,  Latvia,  Lithuania,  Malta,
Poland,  Slovakia  and  Slovenia  will  join  the  European  Union.  This  is  a  turning
point  in  the  history  of  Europe,  the  moment  when  a  union  between  Eastern  and
Western  Europe  comes  to  existence.  With  25  Member  States  and  455  million
citizens, the European Union will start to assume a new continental responsibility,
and a political leadership.

(cid:1)  In June 2004, citizens will elect up to 732 members of the European Parliament.
The  European  Parliament  will  in  turn  approve  the  appointments  of  the  new
Commission, consisting of one Commissioner from each Member State. It will be
crucial  that  the  citizens  of  the  enlarged  Europe  feel  that  the  European  Union
responds to their needs and concerns at this defining moment. Hence, the need for
unprecedented communication efforts towards citizens.

(cid:1)  After  the  conclusion  of  the  Convention  and  an  inter-governmental  conference,
there  is  a  possibility  that  2004  will  see  a  new  founding  Treaty,  establishing  the
new architecture and substance for the European Union, ready for ratification by
the Member States.

b)  2004  also  marks  the  last  year  of  this  Commission’s  mandate:  This
Commission has made this enlargement its over-riding priority and sees the entry of
the  new  Member  States  in  this  final  year  as  the  evidence  that  it  has  succeeded  in
achieving this priority. One of the first tasks will be to welcome the Commissioners
from  each  of  these  new  Member  States,  who  will  support  this  Commission’s  work

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for  a  short  interim  period,  and  the  new  officials.  The  new  Commission  will  take
office on 1 November 2004.

Against  this  background,  this  Commission  wishes  to  leave  the  foundations  for  the
success of the enlarged Europe. In this context, this Commission notes that 2004 will
see the completion of the objectives that it set at the beginning of its mandate:

(cid:1)  New forms of governance: The Commission will leave an administration with a
modernised  and  coherent  approach  to  management  and  well  adapted  to  the
challenges  it  faces  following  the  full  implementation  of  the  White  Paper  on
Administrative Reform. Improvements to European  governance  will  also  start to
produce  results.  The  Commission  will  prepare  the  new  financial  perspective
proposal  to  guide  the  European  Union’s  policy  and  budgets  for  the  period  after
2006.

(cid:1)  Stabilising  our  continent:  A  successful  enlargement  is  a  major  contribution  to
the stability of our continent. Preparations to bring Bulgaria and Romania into the
European Union in 2007 will continue. In 2004, the Commission will present its
assessment of whether Turkey meets  the political criteria for  membership  of  the
European Union. In the wider world, the Doha Development Agenda negotiations
are due to be completed by the end of 2004. In 2004, the Commission will prepare
for a general review of the Cotonou agreement in 2005.

(cid:1)  Towards  a  new  Economic  and  Social  Agenda:  Early  in  its  mandate  (March
2000), the  Commission  and  Council  established  the  Lisbon  Strategy,  which  will
be  well  advanced  in  2004.  Achievements  include  the  Nice  Social  Agenda,  the
European  Company  Statute,  eEurope,  the  European  Research  Area  and  the
Financial  Services  Action  Plan.  In  2002  the  Euro  became  the  common  currency
for most Member States. In 2004 the European Single Sky comes into effect.

(cid:1)  Better  Quality  of  Life:  2004  is  the  final  year  of  the  mandate  given  by  the
European Council in Tampere to create a European area of freedom, security and
justice. The Commission has presented all of the legislative proposals required by
the Treaties for the first stage of this area, and is well on track in relation to new
priorities with regard to migration management, in particular the management of
the  European  Union’s  external  borders,  the  integration  of  immigrants  and  co-
operation with third countries. To respond to citizens’ concerns in the area of food
safety, this Commission will leave in place a European Food Safety Authority.

In  conclusion,  this  Commission  should  leave  a  situation  enabling  the  Enlarged
Europe to start to function in good conditions, and to meet the challenges ahead. In
this respect, it will be important that Parliament and Council reach decisions in 2004
on all the proposals made by the Commission and which would still be pending.

3. 

THE POLITICAL PRIORITIES FOR 2004 : ACCESSION BECOMES A REALITY

The  first  element  to  note  is  that  in  2004  the  Commission  has  to  define  its  policy
priorities on the basis of 25 Member States.

During  its  orientation  debate  on  policy  priorities  for  2004,  the  College  decided  to
pursue and deepen the priorities identified for 2003, which need to be adapted for the

5

enlarged  Union  and  for  the  specific  circumstances  identified  above  for  2004.
Therefore,  the  three  policy  priorities  identified  for  2003  are  maintained  in  a  broad
sense,  considering  that  they  will  refer  to  25  Member  States  and  will  need  to  be
strengthened, enriched and updated.

The central priority remains enlargement, and in particular the accession of ten new
Member  States:  since  the  first  day  of  the  largest  ever  European  enlargement,  the
Community will have to function fully with its 25 Member States. The challenge is
huge,  as  all  activities  will  have  to  be  developed  and  adapted  in  order  to  make  a
success of enlargement.

The two connected priorities are stability and sustainable growth, which build upon
the  stability  and  security  and  an  inclusive  and  sustainable  economy  priorities  for
2003.

3.1. 

The accession of ten new Member States

This priority, which has accompanied the Commission throughout its mandate, will
be  at  its  highest in 2004, the  year the EU will see the  formal accession of ten  new
Member States. In addition, the Commission will pursue the accession negotiations
with  Bulgaria  and  Romania,  and  prepare  the  report  requested  by  the  European
Council on Turkey. The main strands of this priority are two-fold:

(cid:1)  The legal obligations of the EU and of the new Member States vis-à-vis the acquis
communautaire  have  to  be  fulfilled  from  the  first  day  of  accession.  The  top
priorities  to  be  achieved  are  the  implementation  of  legislation,  extending  the
existing programmes, instruments and procedures to the new Member States and
developing an  economic convergence strategy;  this implies a particular  attention
to an effective functioning of the Common Agricultural Policy and the structural
funds  (employment,  social  and  regional  policy)  and  to  the  enforcement  of  the
acquis  communautaire  in  those  areas  which  present  specific  challenges,  namely
the  internal  market  (i.  e.  public  procurement  and  financial  supervision),
environment and food safety.

(cid:1)  The Commission, as an institution, must be ready to work with the new Member
States and welcome new officials from the acceding countries. This requires that
the  house  is  in  order,  and  a  specific  priority  should  be  given  notably  to  the
completion  of  the  administrative  reform  and  to  continuing  to  improve  its
governance. To achieve this the new Staff Regulations will have to be adopted by
the Council in June 2003 in order to allow  an effective integration of  new  staff.
This will also significantly reduce the administrative costs of enlargement.

The Accession of 10 new Member States: key initiatives for 2004

To  achieve  these  objectives,  the  following  key  initiatives  have  been
selected:
(cid:1)  To  adapt  all  existing  programmes  in  all  policy  areas  to  the  full
membership of the new Members States, notably as far as the structural
funds are concerned, and the implementation of the CAP.

(cid:1)  To  apply  the  Schengen  evaluation  mechanism  to  the  new  Member
States  to  ensure  the  correct  application  of  certain  provisions  of  the

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Schengen acquis in those States and to prepare for verifying the degree
to which the conditions for lifting of internal border controls on persons
with these States are met; to support implementation of new regime of
facilitated transit documents in respect of Kaliningrad; to ensure that the
levels of nuclear safety in the new Member States are as high as in the
existing Member States.

(cid:1)  To  reinforce  acquis  enforcement  activities,  notably  in  the  domains  of
food  safety,  environment,  internal  market,  employment  and  social
policy fields;

(cid:1)  To update, codify  and  simplify  the  acquis  communautaire  in  line  with

the Better Regulation initiative.

(cid:1)  To negotiate in WTO the consequences of the adoption of the external

customs tariff for the new member states.

(cid:1)  To  ensure  that  all  necessary  administrative  preparations  for  accession
are  fully  completed,  including,  those  that  will  be  necessary  to
implement  a new set of Staff Regulations,  and  to  recruit  and  welcome
staff  from  the  new  Member  States,  meet  the  minimum  linguistic
requirements  for  9  (or  10)  new  official  and  working  languages  of  the
Union  in  the  fields  of  translation  and  interpretation  and  open  new
representations in the new Member States.

(cid:1)  To  support  continuing  preparations  for  accession  of  Bulgaria  and
Romania  and  analyse  Turkey's  compliance  with  the  political  and
economic criteria for accession.

3.2. 

Stability

The  tensions  world-wide  and  those  which  permeate  internally  European  societies
have driven the Commission to make security and stability a main priority in 2003. It
is essential that responses to citizens’ concerns on issues such as illegal immigration
be appropriately balanced with the need to protect individual freedoms and to ensure
justice  for  all.  It  is  also  fundamental  to  stress  the  objective  of  stability,  in  a
constructive and positive light both inside and outside the EU.

For this priority, two approaches are highlighted:

(cid:1)  at  the  moment  when  enlargement  is  realised  through  the  accession  of  the  new
Member  States,  the  Commission  will  propose  a  stable  and  comprehensive
political  framework  for  our  neighbouring  countries.  This  single  political
framework  (neighbours’  initiative/“ring  of  friends”)  should  be  designed  to  offer
an alternative political framework to the countries which are our neighbours and
are  currently  not,  or  have  no  vocation  to  become  members  of  the  Union.  The
Copenhagen European Council in December 2002 recognised this and  called  for
the EU to take the opportunity offered by enlargement to enhance relations with
its neighbours on the basis of shared values. The Union should avoid drawing new
dividing lines in Europe and promote stability and prosperity on both sides of the
new borders. As the enlarging Union has created a zone of stability and prosperity
by encompassing the new members, so it has the weight and the interest to ensure

7

stability and prosperity for its immediate neighbours. Enlargement therefore gives
new  impetus  to  the  efforts  of  drawing  closer  to  the  385  million  inhabitants  of
Russia,  the  Ukraine,  Belarus  and  Moldova  and  the  countries  of  the  Southern
Mediterranean:  Algeria,  Egypt,  Israel,  Jordan,  Lebanon,  Libya,  Morocco,
Palestinian  Authority,  Syria  and  Tunisia.  Democracy,  pluralism,  respect  for
human rights and the rule of law are essential prerequisites for stability, as well as
for  sustained  social  and  economic  development  and  the  Union  must  meet  the
challenge  of  creating  a  deeper, more  inclusive  and consistent  relationship across
its Eastern and Southern neighbours. The  aim is to  develop a  zone of prosperity
and  a friendly  neighbourhood  -  a  ring of friends.  In return for  concrete  progress
demonstrating shared values and implementation of political, social and economic
reforms, and taking the present contractual relations as a starting point, the EU's
neighbourhood should benefit from preferential treatment and should be offered a
stake in the single market;

(cid:1)  within the Union, the efforts to efficiently manage our common borders have to be
increased. A particular attention will be devoted to measures to step up actions in
favour of crime prevention and in order to increase security. In addition, it will be
necessary to put emphasis on properly balanced immigration policies, which, inter
alia, respond better to the current and future needs of the labour market in terms of
labour  force:  this  requires  specific  measures  improving  the  access  of  legal
immigrants to the labour market,  but  equally  measures  to  promote  all  aspects  of
integration and fair treatment of legal migrants. More generally, the objective will
be to put in place all the measures agreed at Tampere to create an area of security
and justice, and start a reflection on the next steps.

Stability: key initiatives for 2004

To  achieve  these  objectives,  the  following  key  initiatives  have  been
selected:

(cid:1)  To work with Council to secure maximum adoption of proposals needed
to  create  a  European  area  of  freedom,  security  and  justice  by  the
deadline  of  1  May  2004;  to  continue  further  development  of  the
to  support
freedom,  security  and 
European  area  of 
communication  activities  to  make  people  aware  of  their  rights  and  to
develop the rights of EU citizens to move and reside freely in the EU; to
lead  debate  and  discussion  on  new  "Tampere  II"  programme,  and  to
propose  legislative  measures  defining  the  Visa  Information  System
(VIS);  to  launch  a  study  on  the  impact  of  enlargement  on  the
management of the external borders and improve the instructions given
to  visa-issuing  authorities  as  the  next  stage  in  the  development  of  a
common border system.

justice, 

(cid:1)  To  further  develop  policy  dialogue  and  macro-economic  co-operation
for  the  “ring  of  friends”,  as  well  as  extending  the  internal  market  and
common  regulatory  structures,  supporting  integration  into  the  global
trading  system,  preferential  trading  relations  and  market  opening,
integration  into  transport,  energy  and  telecommunications  networks,
greater EU political involvement in conflict prevention and crisis, more
cultural cooperation and efforts to enhanced mutual understanding.

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(cid:1)  To  pursue  Stabilisation  and  Association  Agreements  and  extend  the
Pan–European system of origin cumulation with the Balkan countries,
supporting  capacity  building,  in  the  framework  of  a  wider  “ring  of
friends” policy.

(cid:1)  To  improve  implementation  of  the  partnership  and  co-operation
agreements  with  Russia  and  Ukraine  in  the  area  of  Justice  and  Home
Affairs.  This  means  in  particular  the  action  plan  against  organised
crime  with  Russia,  the  JHA  action  plan  with  Ukraine,  and  closer  co-
operation within the Baltic Sea Task force to combat organised crime.

(cid:1)  To implement new co-operation programmes with third countries in the
area  of  migration,  take  forward  measures  to  develop  a  balanced
approach to immigration, in particular as a means of ensuring that high
levels  of  employment  and  productivity  can  be  maintained  in  future
decades.  This  implies  bringing  forward  measures  to  promote  the
integration  of  legally-resident  migrants,  and  to  promote  intercultural
dialogue, especially with our neighbouring countries.

(cid:1)  To  develop  a  policy  for  security  of  communication  networks  and

information.

(cid:1)  To  continue  action  against  bio-terrorism  and  to  enhance  European
security measures in support of Petersberg’s tasks, including research1.

3.3. 

Sustainable growth

This priority aims at consolidating Europe in such a way that prosperity, economic
convergence,  social  cohesion,  environmental  protection  and  a  better  quality  of  life
are preserved for both present and  future  generations. It is a very large agenda  and
for  2004  it  is  necessary  to  focus  on  the  areas  where  reinforcement  is  particularly
necessary, particularly in relation to the new Member States, in order to catch up in
some  policy  domains.  This  relates  to  essential  crosscutting  elements  for  the
realisation of the Lisbon agenda as well as the conclusions agreed at Göteborg. Also
on the international level sustainability is becoming an important issue. Moreover, it
should be noted that the Doha development agenda negotiations will reach their final
stage. Here also, two strands can be distinguished:

(cid:1)  On  the  one  hand,  the  economic  pillar  of  sustainable  development  needs  to  be
reinforced in a Europe of 25 to support growth and to ensure a global balance. It is
a question of improving human capital and technology, by putting more emphasis
on  actions  concerning  the  creation  and  acquisition  of  knowledge  and  education,
the  circulation  of  information,  employment  and  social  protection.  At  the  same
time,  priority  should  be  given  to  the  environment  for  European  enterprises,
notably basic infrastructure and  the regulatory  framework,  and  the  co-ordination
of fiscal and economic policies which must be reinforced;

(cid:1)  On the other hand, there is a need to ensure that the other elements of sustainable
development are properly taken into account, notably through the development of

1

Without prejudice to budgetary implications

9

                                                
new  technologies  and  a  better  integration  of  environmental  concerns  into  other
policies.

Sustainable growth: key initiatives for 2004

To achieve these objectives, the following key initiatives have been selected:

(cid:1)  To  improve  economic  and  budgetary  co-ordination  between  Member

States.

(cid:1)  To launch a Review of Sustainable Development Strategy.

(cid:1)  To implement the industrial policy strategy.

(cid:1)  To  prepare  the  implementation  of  the  new  chemicals  strategy,  through
measures such as the creation of a chemicals agency to manage the new
REACH  (Registration,  Evaluation  and  Authorisation  of  Chemicals)
system.

(cid:1)  In  the  “Energy  Intelligent  for  Europe”  programme,  to  promote  and
develop  new  systems  and  equipment  to  ease  the  transition  from
demonstration to actual marketing of new and efficient technologies.
(cid:1)  To  develop  further  the  European  Research  Area,  notably  through  the
the  open  method  of  coordination  and  European
application  of 
technology  platforms,  to  implement  an  action  plan  to  increase
investment  in  research  and  development  in  line  with  the  3%  objective
and to attract adequate human resources in research.

(cid:1)  In  the  6th  Framework  Research  programme,  to  support  innovative
sustainable and energy-saving technologies as well as efforts aiming at
the  long-term  availability  of  the  most  appropriate  energy  sources  and
carriers.

(cid:1)  To review circulation and registration taxes for passenger cars to make
them  more  CO2  efficient  and  present  a  communication  on  energy
taxation in the enlarged Union.

(cid:1)  To  develop  a  space  policy  and  advance  preparations  for  the  Galileo
satellite, which will improve traffic management and reduce congestion
and improve energy infrastructure monitoring.
(cid:1)  To implement the new Erasmus-World Programme.

(cid:1)  To improve the international management of the internet.

(cid:1)  To propose measures to give citizens easier legal recourse to courts and
authorities in other Member States concerning civil matters. Objectives
include to speed up and simplify small claims litigation and to  give all
civil  litigants  access  to  reliable  and  effective  Alternative  Dispute
Resolution schemes.

(cid:1)  Through  the  European  Maritime  Safety  Agency,  to  develop  European
Union capacity to respond to oil pollution disasters, notably through the
acquisition  or  chartering  of  specialised  boats  or  by  taking  other

10

measures to combat pollution on behalf of the EU.

(cid:1)  To  develop  several  environmental  thematic  strategies  (soils,  marine
environment,  pesticides,  waste)  within  the  framework  of  the  6th
environmental Action Programme and complete the important work on
reforming the Common Agricultural and Fisheries Policies.

(cid:1)  To follow up on Johannesburg, namely through the EU water initiative,

and the EU energy initiative.

(cid:1)  To  move  the  Doha  negotiations  towards  successful  completion  by  the
end of 2004, as well as the on-going trade negotiations with Mercosur,
Canada and ASEAN.

(cid:1)  To implement a European strategy for the promotion of corporate social

responsibility.

(cid:1)  To  continue  to  improve  general  quality  of  life  for  European  citizens
focusing in particular on initiatives in  health  and  consumer  protection;
health and safety at work, road safety and new Trans-European energy
networks as well as new initiatives in the education of youth.

(cid:1)  To streamline the existing co-ordination processes in the field of social

protection.

(cid:1)  To implement the Cotonou agreement and prepare its mid-term review
and a first reflection on its revision, as well as a new financial protocol;
To implement the debt initiative, the Global Health Fund and the Action
Plan on communicable diseases and reproductive health.

4. 

MULTIANNUAL 
PROGRAMMING FOR THE EUROPEAN UNION

PERSPECTIVES 

AND 

CONTRIBUTION 

TO  MULTIANNUAL

Last December, the Commission presented an important contribution to the work of
the  Convention.  This  Communication2  highlighted  three  fundamental  tasks  for
tomorrow’s  Union:  consolidating  the  European  model  of  economic  and  social
development  with  a  view  to  guaranteeing  its  people  prosperity  and  solidarity;
developing a European area of freedom, security and justice, to give full meaning to
the  concept  of  European  citizenship;  and  enabling  the  Union  to  exercise  the
responsibilities of a world power.

These tasks can be encapsulated in three key ideas: Peace, Freedom and Solidarity.

It is now the time for the Union to start reflecting  on  how  it  intends  to consolidate
and develop the integration of Europe in these three areas in 2004-2006: a period that
will launch an enlarged and reformed European Union.

In  December  2003,  the  European  Council  will  adopt  a  multiannual  strategic
programme for the  three years to come,  based on a joint proposal drawn  up by the
Presidencies concerned3 in consultation with the Commission.

2

3

COM(2002)728 final, 05,12,2002
Ireland, the Netherlands, Luxembourg, the United Kingdom, Austria and Finland.

11

                                                
In  view  of  this,  the  Commission  has  decided  to  broaden  the  scope  of  its  Annual
Policy Strategy to look not only at 2004 but also at the period 2004 to 2006. This will
set  the  scene  for  a  broad  interinstitutional  dialogue  with  both  the  Council  and  the
European  Parliament  on  the  challenges  facing  the  Union  in  2004-2006  and  thus
contribute towards the preparation of the multiannual strategic programme later this
year. The Commission will review the results of the interinstitutional dialogue in its
Annual  Policy  stocktaking  document  in  the  summer  of  2003.  The  Commission
proposes  to  repeat  this  exercise  next  year,  so  that  the  multiannual  strategic
programme is updated and rolled forward  on  an annual basis. The elections  for  the
European  Parliament  and  the  appointment  of  a  new  Commission  do  therefore  not
impede  the  elaboration  of  a  contribution  to  the  multiannual  programming  of  the
Council.

Against this background, the Commission suggests the following major axes for the
development of a multiannual strategic programme for the Union in 2004-2006:

Peace:  The  Union  now  has  a  continental  responsibility,  which  implies  defending
democracy,  peace  and  stability  within  its  territory,  in  neighbouring  countries  and
throughout the world.

The  Union  should  seek  to  conclude  the  accession  negotiations  with  Romania  and
Bulgaria in time for them to join in 2007.

The European Council will decide in December 2004, on the basis of a report from
the  Commission,  whether  Turkey  fulfils  the  Copenhagen  political  criteria  and,  if  it
does, will open accession negotiations without delay.

The Union will consolidate the Stabilisation and Association process for the Western
Balkans, which may be designated as potential future members when conditions are
ripe.

The Union needs to develop a neighbourhood policy in the Wider Europe, creating a
“ring of friends” stretching from Moscow to Marrakesh. It needs to drive forward the
Barcelona Process with countries in the Mediterranean region and contribute actively
to peace in the Middle East.

The  Union  has  to  play  a  more  active  role  in  maintaining  global  security.  This  will
involve  gradually  developing  the  external  relations  and  defence  dimensions  of  its
policies and being able to take responsibility for EU-led civil/military operations in
the years to come.

The  Union  also  has  to  assume  its  leadership  role  in  tackling  global  problems,
projecting  its  economic  and  social  model  and  sharing  prosperity  more  equitably
throughout  the  world.  Sustainable  development  and  better  global  economic
governance  will  be  crucial  factors  in  ensuring  global  solidarity,  as  will  achieving
globally fair results in the Doha Development Agenda.

As far as development co-operation is concerned, the implementation of the Cotonou
Agreement  as  well  as  its  mid-term  review  will  be  a  major  challenge  in  2004.  In
addition, a new Financial Protocol for the European Development Fund will have to
be  negotiated  in  2004,  as  the  present  Protocol  expires  in  2005.  The  Commission’s
position is that the EDF should be incorporated into the Community budget. It will

12

present  a  Communication  to  the  other  EU  Institutions  on  the  advantages  and
disadvantages of such an inclusion in the Community budget.

Freedom:  The  Union  should  continue  to  consolidate  the  classic  “fundamental
freedoms” enshrined in the Treaties: the economic, social and civic freedoms that are
at  the  heart  of  the  European  project  and  provide  the  bedrock  for  prosperity  and
sustainable growth. It should at the same time make sure that the real implementation
of fundamental rights is up-to-date.

The results of the Tampere Agenda for the first stage in the creation of a European
area  of  freedom,  security  and  justice  will  be  reviewed  in  2004,  and  it  will  be
necessary to consider the further steps needed to develop and maintain this area in all
its aspects.

Stability  and  growth-oriented  macro-economic  policies  and  improved  economic
policy  co-ordination will continue  to  be  important  priorities  flanking  EMU  and  the
Euro, not least in a context where a large number of Member States will not yet be in
the  Euro-zone.  The  Stability  and  Growth  Pact  and  the  ECB’s  monetary  policy
objectives will need to provide a stable foundation for the Union’s prosperity.

The Lisbon Strategy (2000-2010) will reach its halfway stage in 2005. This will be
the opportunity for a major stocktaking of progress and adjustment of its economic,
social and environmental components where necessary. This will build on the results
of the review taking place in 2004 on the Union’s Sustainable Development Strategy.

The Union should continue its work on the fundamental and long-term rationalisation
of European transport and energy markets, so that they work in a more economically,
environmentally  and socially sustainable  way.  In  particular,  the  Maritime,  Aviation
and Railway Agencies will become fully operational during this period; the Energy
Intelligent for Europe Programme will run most of its intended course and significant
steps  forward  in  the  Galileo  Programme  are  anticipated.  It  will  be  necessary  to
prepare  future  orientations  for  Trans-European  Networks  in  transport,  energy  and
telecommunications for the period after 2006.

It will be crucial to consolidate the European agricultural model. This is the aim of
the  reform  proposal  tabled  by  the  Commission  on  22  January  2003.  Moreover,  the
Common Fisheries Policy must be implemented. It will also be necessary to carry out
the results of the Doha Development Agenda negotiations, which are scheduled to be
completed by the end of 2004.

Solidarity:  The  Union  has  a  responsibility  for  strengthening  economic  and  social
cohesion,  reducing  disparities  between  the  level  of  development  of  the  various
regions,  fostering  sustainable  economic  and  social  development  (i.e.  geographical
solidarity),  as  well  as  for  promoting  balanced  and  sustainable  development  (i.e.
solidarity between present and future generations).

Later this  year, the  Commission  will  present  the  third  triennial  report  on  economic
and  social  cohesion.  This  will  provide  the  basis  for  future  cohesion  policy
orientations and programmes for the period after 2006.

The  Commission  will  evaluate  the  existing  Structural  Funds  and  will  present
proposals  for  the  period  after  2006,  including  proposals  for  the  European

13

Agricultural  Guidance  and  Guarantee  Fund,  the  European  Social  Fund  and  the
European Regional Development Fund.

Investment in knowledge will  remain  a  major  priority  in  the  years  2004-2006.  The
Commission  wil  put  forward  proposals  to  further  the  Union’s  research  policy,
notably through the implementation of the European Research Area, the continuation
of the Framework Programme and support for increased investment in research.

The current Social Policy Agenda will come to an end in 2005. Its results, building
on the 2003 mid-term review, will provide a basis for outlining a new framework for
action  and  addressing  the  policy  measures  needed,  in  particular  with  regard  to
employment  policy,  social  protection  and  equal  opportunities.  This  will  involve
optimising the combination of the available instruments: legislation, the open method
of co-ordination, the European Social Fund, social dialogue and action programmes.
The  review  of  the  European  employment  strategy  in  2006  will  also  help  to  inform
decisions about how best to achieve Lisbon Strategy goals by 2010.

There  will  be  a  review  of  the  6th  Environment  action  programme  in  2006.  The
review will assess at mid term, the progress made in achieving the goals and policies
of  the  10  year  environment  programme  and  may  come  forward  with  additional
proposals in line with the conclusions of the review of the Sustainable Development
Strategy.

The Union’s Public Health Programme for 2003-2008 will become fully operational
by  2004.  Health  systems  and  health  policies  are  becoming  more  interconnected
across the Union, through such factors as the mobility of patients and professionals,
as well as the dissemination of new medical technologies and treatments. This raises
many health policy issues that will have to be addressed, whilst respecting national
responsibility  for  health  systems.  An  intermediate  evaluation  of  the  Public  Health
Programme will be carried out after the first three years of the Programme.

5. 

SELECTION OF INITIATIVES FOR EXTENDED IMPACT ASSESSMENT IN THE ANNUAL
POLICY STRATEGY FOR 2004

The Commission introduced a new integrated procedure for impact assessment of all
its major initiatives to improve the quality and coherence of the policy development
process  in  June  20024.  This  new  procedure  integrates,  streamlines  and  replaces  all
existing separate impact assessments previously used in the analysis of Commission
proposals.

Impact  assessment  applies  to  the  major  initiatives,  i.e.  those  presented  by  the
Commission  in  its  Annual  policy  strategy  or  its  Legislative  and  Work  programme.
Therefore,  the  selection of initiatives  for  extended  impact  assessments  is  integrated
with the Commission’s Strategic Programming and Planning  cycle.  On  the basis of
preliminary  assessments  of  the  key  initiatives,  the  Commission  decides  which
proposals  should  undergo  an  extended  impact  assessment  in  the  Annual  Policy
Strategy or  at the latest in the  Commission  Legislative  and  Work  Programme.  It  is
important  that  policy  initiatives  with  a  significant  impact  are  identified  early  in  the
process  to  allow  sufficient  time  to  prepare  the  extended  impact  assessment.  The

4

COM(2002)276 of 5 June 2002

14

                                                
extended  impact  assessment  focuses  on  the  economic,  social  and  environmental  as
well  as  the  regulatory  impacts  of  the  proposal.  It  also  includes  an  analysis  of
subsidiarity  and  proportionality.  Finally,  an  extended  impact  assessment  process
normally  includes  a  consultation  with  interested  parties  and  relevant  experts
according to the Commission’s minimum standards for consultation.

The procedure is implemented  gradually. A first list of 42 proposals was identified
for  extended  impact  assessment  with  the  adoption  of  the  Legislative  and  Work
Programme  for  2003.  The  procedure  will  now  become  fully  operational  with  the
adoption of the Annual Policy Strategy and the Commission’s Legislative and Work
Programme for 2004.

A total of 31 proposals have been included in the initial list of proposals for extended
impact  assessment  in  2004.  These  proposals  representing  initiatives  from  a  wide
range of sectors within the three priority areas have been selected using the criteria
set out in the Communication on Impact Assessment. In deciding on this initial list of
extended  impact  assessments,  the  Commission  has  inter  alia  taken  the  following
criteria into account:

–  Whether  the  proposal  will  result  in  substantial  economic,  environmental  and/or
social  impacts  on  a  specific  sector  or  several  sectors,  and  whether  the  proposal
will have a significant impact on major interested parties;

–  Whether the proposal represents a major policy reform in one or several sectors.

In the final list of proposals selected for extended impact assessment annexed to the
Legislative and Work Programme for 2004, it is expected that the Commission will
identify further proposals relating to legislative follow up to the substantive reforms
of respectively the Fisheries and the Common Agricultural Policies and in the field
of information technology. Further proposals representing all the key policy sectors
covered by the priorities will also be included  in  the  final  list  when  more  detail on
the concrete proposals has been developed.

6. 

HUMAN  AND  FINANCIAL  RESOURCES  IN  AN  ENLARGED  UNION:  THE  GLOBAL
FRAMEWORK RESULTING FROM THE POLICY STRATEGY FOR 2004

6.1. 

General framework for human resources

For 2004, the Commission has foreseen to serve the human resource needs expressed
by services in the following way:

(cid:1)  As far as priority 1 is concerned, and based on the communication on “Activities
and human resources in the enlarged European Union”5, it is envisaged to request
1280 staff (excluding research) to the budgetary authority for 2004 (including the
frontloading of 500 auxiliaries for 2003), which are the net result after taking into
account internal redeployments and the weighting of services’ needs in relation to
the priority granted to their policy area (see under 6.1.1);

5

Communication of 05/06/2002, COM(2002)311 final

15

                                                
(cid:1)  Concerning  priorities  2  and  3,  no  additional  requests  for  new  posts  will  be
presented. It will therefore be necessary to cover the needs expressed by services
through internal redeployments (see under 6.1.2);

(cid:1)  As for needs linked to the implementation of the administrative reform, they will
be fulfilled through a refocusing of the posts freed by the early retirement scheme
over the years 2002, 2003 and 2004 (see under 6.1.4).

In  order  to  provide  a  stable  basis  for  future  allocation  and  re-allocation  of  human
resources, the Commission has established the number of jobs for each service (the
“Jobs  Quota”),  which  will  allow  for  an  improved  management  and  monitoring  of
resources.

The  system  will  provide  the  tools  for  real-time  monitoring  of  jobs  permanently  or
temporarily available in each service and the state of execution of allocations and re-
allocations of resources.

6.1.1.  The accession of ten new Member States

Making  the  first  year  of  accession  a  success  constitutes  the  first  priority  of  the
Commission  for  2004.  For  the  Union  to  strengthen  its  role  as  the  driving  force  for
peace, democracy, stability and prosperity in our continent the Commission will have
to ensure the smooth integration of ten new Member States, while safeguarding the
effective functioning of the enlarged Union.

In  the  Communication  on  “Activities  and  Human  Resources  of  the  Commission  in
the Enlarged European Union”, the Commission rigorously assessed its medium term
staffing  needs  after  accession  of  the  ten  new  Member  States.  An  increase  of  3900
staff6 was deemed necessary to ensure the execution of the  Commission’s statutory
missions. This increase would take place from 2004 until 2008 and is consistent with
the adjusted financial perspective for an enlarged Community set until 2006.

Based on the experience of previous enlargements, the Communication indicates that
it  is  critical  that  around  32%  of  the  overall  additional  human  resources  should  be
present in 2004 in order for the Community policies to start functioning on the first
day after accession. Regarding the Commission administrative expenditure financed
under  heading  5  of  the  financial  perspective  (former  part  A  of  the  budget),  this
corresponds to about 1280 additional staff (excluding research).

With  the  Policy  Strategy  and  Preliminary  Draft  Budget  for  2003,  the  Commission
identified immediate needs for additional resources to help prepare for enlargement.
To this end the budgetary authority granted appropriations corresponding to the 500
additional outside personnel in 2003 as an advance on the resources necessary over
the period up to 2008. Taking into account these 500 outside  personnel  that should
also  remain  in  the  Commission  services  in  2004,  the  Commission  will  request  780
additional posts in the establishment plan to reach the total of 1280 additional staff
(excluding research) planned for 2004.

6

The  increase  breaks  down  into  3960  resources  financed  from  heading  5  of  the  financial  perspective
(former part A) (3400 establishment plan posts and 560 outside personnel), 150 posts financed from the
research budget and a reduction of 210 outside personnel financed from the operational budget.

16

                                                
The  Communication’s  estimates  include  re-deployments  following  phasing-out  or
scaling-down  of  pre-accession  related  activities.  In  2004  around  300  posts/outside
personnel  will  be  available  for  re-deployment  between  services  because  of  the
reduction of certain activities:

–  Delegations will be progressively phased-out in 2004. As  a transitional measure,
an appropriate number of staff may remain in place to follow-up implementation
of  Phare  appropriations.  A  smooth  transition  from  the  delegations  to  the  Press
Representations will also have to be organised to avoid any duplication.

–  The  completion  of  monitoring  activities  and  the  progressive  scaling-down  of
Phare  management  at  Headquarters.  In  particular,  it  is  foreseen  that  the  staff
involved  in  the  enlargement  preparations  in  all  the  services  of  the  Commission
will be redeployed towards other priority tasks.

Possibilities for redeployment linked to the reduction of enlargement activities within
departments  have  also  been  identified  (namely  the  staff  currently  working  on
preparations  for  enlargement,  co-ordination  and  monitoring  of  the  acquis).  The
above-mentioned redeployments can satisfy needs for some 506 posts.

Three  priority  categories  have  been  established  according  to  the  intensity  of  the
activities from the very first year of the accession: the policy areas dealing with new
tasks  resulting  from  the  Accession  Treaty  and  priority  issues  defined  at  the
Copenhagen summit fall under the first one (justice and home affairs, transport and
energy  and  regional  policy),  the  policy  areas  dealing  with  structural  aid  and
responsible for the implementation of critical parts of the acquis communautaire fall
under the second one (in particular the other structural funds, environment and health
and  consumer  protection),  and  the  remaining  policy  areas  fall  under  the  third
category.

A  separate  group  (the  linguistic  services)  will  receive  the  staff  necessary  to  ensure
acceptable quality standards in the new languages from the first day of accession.

On  11  February  2003,  the  Commission  adopted  a  communication  providing  a
framework of action for updating and simplifying the Community acquis. While the
long-term benefits of the above-mentioned simplification are undisputed,  the  short-
term  efforts  to  achieve  improvements  will  demand  adequate  human  resources.  The
detailed  examination  of  the  corresponding  human  resource  needs  for  the  services
involved  in  the  framework  of  action  will  be  carried  out  during  the  budgetary
hearings:  on  this  basis,  a  subsequent  allocation  of  posts  may  be  considered  as
appropriate within the global human resources allocation framework.

6.1.2.  Contribution to a central pool for priorities 2 and 3

The  global  framework  for  2004  implies  that  no  new  posts  will  be  required  to  the
budgetary  authority  apart  from  those  needed  to  cover  the  accession  priority.
However, many important initiatives are proposed by the Commission under the two
other  priorities,  stability  and  sustainable  growth.  It  is  therefore  necessary  to  serve
these priorities by internal redeployments.

Considering that in previous years the Commission services have already responded
positively and massively to a number of severe internal redeployment exercises, for

17

2004 the requested contributions to a central pool serving priorities 2 and 3 will be
limited  to  a  very  small  percentage,  rebated  for  those  services  which  have  already
proposed specific and quantified  redeployments to serve the two  priorities  in 2004.
Furthermore, some internal  reorganisation and scaling-down of activities other than
linked  to  enlargement  have  been  identified  within  services  to  contribute  to
these 2 priorities.

On  the  basis  of  the  key  initiatives  identified  in  section  3.2  and  3.3,  staff
redeployments will be mainly targeted to the following policy areas:

(cid:1)  As far as “stability” is concerned: justice and home affairs, public health, external

relations, employment and social affairs;

(cid:1)  Concerning  a  sustainable  economy:  environment,  development  and  trade  policy,
transport  and  energy,  information  society,  economic  and  monetary  policy,
taxation and customs.

6.1.3.  Total Human Resources available for the three priorities

The following table sums up human resources foreseen to launch new initiatives or
strengthen ongoing actions by priority and by source.

APS  Priorities
2004

p.m. Advances
received in
2003

New staff

Redeployments
between
services

Redeployments
within services

1. Enlargement

500

2. Stability

3. Sustainable
Economy

0

0

TOTAL

500

780

0

0

780

309

35

62

406

199

17

25

241

Total  Human
Resources
available 
the priorities

for

17887

52

87

1927

The allocation by Policy Area will be finalised in the course of the preparation of the
Preliminary  Draft  Budget  2004,  including  the  breakdown  between  establishment
posts and outside personnel.

6.1.4.  Needs linked to the implementation of the Reform

The  administrative  reform  started  in  2000  and  is  currently  in  the  third  year  of
implementation.  It  is  therefore  well  on  track  and  the  main  resource  needs  have
already  been  taken  into  account  during  the  past  resource  allocation  exercise.
However,  the  implementation  of  some  major  aspects  of  the  reform  is  clearly
understaffed,  as  it  has  been  pointed  out  in  several  Directors-General’s  declarations
and activity reports for the year 2001 and noted by the Commission when adopting
the Synthesis of the annual reports.

7

In addition, for the enlargement priority 45 new posts under the Research budget

18

                                                
As it was  indicated  in  action  5  of  the  Synthesis8, the Annual Policy Strategy is the
framework  in  which  supplementary,  well  justified  requests  of  human  resources  to
face  an  increased  workload  due  to  the  implementation  of  the  reform  need  to  be
accommodated. However, apart from the enlargement priority, the Commission does
not envisage to request new posts to the  budgetary  authority  for any  other  priority.
The only means to satisfy at least the most urgent and justified needs to implement
the reform is therefore to resort to the posts freed by the early retirement scheme for
the  years  2002, 2003  and 2004.  Out of  a maximum of  600  early  retirements,  up  to
258  posts  may  be  freed.  All  these  posts  will  have  to  be  used  for  the
implementation  of  the  reform.  In  accordance  with  what  has  been  decided  by  the
Commission  in  the  Annual  Policy  Strategy  for  2003,  it  is  confirmed  also  for  the
following early retirement exercises that two thirds of these posts will be returned to
the  corresponding  services  which  will  use  them  to  support  reform-related  activities
that they have identified. The remaining one third will be  redistributed  to  serve  the
most  urgent  needs  recognised  by  the  Commission  in  the  central  services  (SG,  DG
BUDG and ADMIN), which mainly cover the following priorities:

–  New accounting framework (24 posts);

–  Action  plan  to  establish  a  common,  electronic  archiving  system  in  the

Commission (19 posts);

–  New staff policy and interoperability of IT systems (33 posts)

–  Internal Audit (10)

6.1.5. 

Situation of Heading 5

In 2004, taking into account the credits foreseen in the Financial Perspectives for the
administrative expenditure of enlargement and the different estimates of the second
report  of  the  Secretaries-general  of  the  Institutions  on  the  evolution  of  heading  5
(May 2002), respectively for the other Institutions, the expenditure for the pensions,
and  finally  the  expenditure  of  the  Commission,  including  the  financing  of  the  780
additional posts necessary for enlargement, the margin for 2004 would be €13 Mio.

However,  the  margin  for  2004  has  to  remain  at  least  at  €20  Mio.  because  the  new
resources intended for enlargement will not be financed for a full year in 2004. The
impact of these new resources in 2005  and 2006  will be proportionally higher than
the  growth  of  the  ceiling  of  Heading  5.  Thus,  the  second  report  of  the  Secretaries-
general  forecast  a  negative  margin  of  €5  Mio.  for  Heading  5  in  2006.  It  is  to  be
noted, however, that these calculations are based on the administrative costs flowing
from the proposed set of Staff Regulations. The non-implementation of the new Staff
Regulation would decrease the margin by €26 Mio.  €56Mio. and  €81Mio. in 2004,
2005 and 2006, respectively.

A  careful  analysis  of  the  APS  requests  leads  to  a  programming  of  Heading  5
Commission  for  2004  of  €3.037  Mio.,  identical  to  the  one  of  the  report  of  the
Secretaries-general of May 2002 and takes into account:

8

Synthesis of annual activity reports (COM(2002)426 final)

19

                                                
(cid:1)  A reduction of the economies following the transformation of the delegations into
Press Offices, because of the possible maintenance of the allowances of appendix
X  of the  statute  for  a  period  of  15  months  after  adhesion.  It  is  important  in  this
context  to  limit  the  number  of  civil  servants  benefiting  from  this  transitional
measure. Moreover, DG PRESS and DG RELEX have also to collaborate in 2004
to avoid the expenses of simultaneous renting the old buildings of the delegations
and the new buildings for the Press Offices.

(cid:1)  A need  for adjusting  certain  costs related  to  enlargement  compared  to  the  initial

programming, in particular in term of expenses of committees.

(cid:1)  A  need  for  adjusting  certain  costs  dependent  on  the  building  policy,  both  in

Brussels and in Luxembourg.

The  present  programming  also  includes  the  expenditures  for  sending  117  civil
servants from the headquarters to the delegations within the framework of devolution
and  the  social  expenditure  foreseen  in  the  framework  of  the  reform.  Finally  the
recent adjustments of the cost of the reform of the statute should lead to a margin of
€ 20 Mio.

6.1.6.  Reallocation of resources freed by externalisation of activities

The  White  paper  on  Reform9  states  that  externalisation  is  one  of  the  means  of
implementing  its  strategy  to  re-centre  the  Commission  on  its  core  tasks  and  policy
priorities.  Striking  the  right  balance  between  the  use  of  internal  and  external
resources  will  be  especially  important  in  a  system  where  decisions  on  resources
allocations are integrated with those on priority setting and programming. One of the
by
externalisation’s 
devolution/externalisation  of  activities,  to  support  the  priorities  identified  by  the
Commission10.

re-deploying 

objectives 

resources 

freed 

for 

is 

The  Council  Regulation  on  executive  agencies11  states  that  posts  of  officials
seconded  by  the  Commission  as  temporary  staff  of  the  agency  shall  not  be  filled
during  this  secondment  and  the  budget  of  the  Commission  shall  be  calculated  in
accordance with this vacancy. However, the regulation also confirms the possibility
for the Commission to re-allocate the administrative resources freed by transferring
tasks to executive agencies. The Commission has to inform the budgetary authority
during the budgetary procedure and justify the re-allocation of these resources. It is
envisaged  that  the  resources  freed  by  the  transfer  should  be  allocated  to  the
Commission’s priorities, as identified in the APS decision.

The orientations on re-allocation of resources freed by devolution/externalisation has
to  be  defined  in  the  APS  decision  that  constitutes  the  integrated  framework  for
priority  setting  and  resources  allocation  of  the  Commission.  Therefore,  services
proposals  to  create  a  structure  for  externalising  tasks  and  activities,  enabling  re-

9

10

11

COM(2000)200
See  points  1  and  7  of  the  Report  of  the  planning  and  co-ordination  Group  on  Externalisation
“Externalisation  of  the  programmes  management”  of  15.05.2000  –  SEC(2000)823/2  and  point  3  of
Memorandum  from  the  President  “Matching  the  Commission’s  activities  with  its  human  resources  -
The means to achieve our objectives” of 25.07.2000 – SEC(2000)2000/2.
CE n° 58/2003 of 19.12.2002 – OJ L 11 of 16.01.2003, p.1

20

                                                
allocation  of  permanent  staff,  have  to  be  addressed  in  the  first  place  in  the  APS
decision.

For 2004, the Commission has put forward a proposal for a Security of networks and
information agency (INFSO). In addition, the appropriateness of creating agencies in
other areas, is being examined.

Should the creation of these agencies be decided by the Commission on the basis of
the cost-benefit analysis requested by the regulation, the above-mentioned principle
will be applied to the possible resources freed. This will be reviewed as appropriate
in further steps of the cycle, taking fully into account the priority needs defined in the
APS  decision  and  according  to  the  applicable  procedures  depending  on  the  very
nature of the agencies (executive or not).

6.1.7. 

Situation of the Directorate-generals in the external relations field

While confirming on several occasions the reform of the Relex Directorates-General
as  established  at  the  beginning  of  the  mandate  of  this  Commission,  the  need  to
examine the possibility of better synergies between the services concerned was noted
by  the  Commission.  This  issue  has  been  thoroughly  examined  and  debated  by  the
Commissioners in charge of the services concerned.

At the same time, it is important to note that any new organisation should essentially
be put in place for the beginning of the new Commission, as it will be necessary to
take into account the results of the Convention when revisiting the architecture of the
Directorates-General  operating  in  external  relations.  It  should  also  be  noted  that
synergies  can  be  identified  and  resources  made  available  depending  on  decisions
concerning  the  organisational  set  up  of  the  RELEX  services  and  on  economies  of
scale to be reallocated.

In  the  light  of  the  above,  a  report  will  be  prepared  under  the  authority  of  the
President  on  the  most  efficient  organisation  of  the  services  in  charge  of  external
relations  in  the  light  of  experience  and  the  orientations  resulting  from  the
Convention.

6.2. 

Financial resources: a challenging framework for 2004

The fact that 1 May 2004 has been set as the date of accession of the 10 new Member
States has important implications in terms of the budgetary procedure. It implies that
a budget relating to the current 15 Member States must be established for the period
between 1 January and 30 April 2004 and that the effect of enlargement needs to be
evaluated in order to permit the preparation of a budget based on 25 Member States
that will enter into force on 1 May 2004. Thus the APS must highlight the changes
expected as a result of the accession of the 10 new Member States.

In  this  context,  the  enlargement-related  financial  framework  presented  in  this
document  relates  to  the  adjustment  to  the  financial  perspective  proposed  by  the
Commission  in  accordance  with  the  Interinstitutional  Agreement  (IIA)  of  6  May
1999 on  budgetary discipline  and  improvement  of the budgetary procedure, to take
account of the associated expenditure requirements. The latter, resulting from the 10
acceding  countries  and  determined  by  the  outcome  of  the  accession  negotiations,
were endorsed by the Copenhagen European Council of 12 and 13 December 2002.

21

Thus  increased  ceilings  for  EU-15  are  indicated  in  this  document  for  financial
perspective headings relating to Agriculture, Structural actions, Internal policies and
Administration.

In terms of  heading 1  “Agriculture”,  the  expected  increase  in  expenditure  resulting
from enlargement is approximately €2 100 Mio., which leads to an expected margin
of just under €1 100 Mio. for EU-25.

The  overall  commitment  appropriations  for  the  structural  and  cohesion  funds  to  be
added  under  heading  2  should  be  a  total  of  €24,6  billion  in  current  prices  over  the
period (2004-2006) in accordance with the conclusions of the Copenhagen European
Council.  Of  this,  the  increase  in  commitment  appropriations  in  2004  represents  an
amount of €6,71 billion.

With regard to Internal policies, the forecast for the increase in expenditure resulting
from  enlargement  is  almost  €1  600  Mio.,  resulting  in  a  margin  of  some  €70  Mio.
under EU-25 ceiling.

Heading  4  “External  actions”  is  not  directly  affected  by  the  enlargement,  but  the
proposed  transfer to  heading  7  "Pre-accession" of  the  amounts  foreseen  for  Turkey
(€134  Mio.)  and  the  freeing  up  of  25  Mio  €  as  a  result  of  Cyprus  and  Malta
becoming Member States considerably increases the margin and allows some major
increases for the neighbours of the enlarged Union even if a sizeable margin should
be left for unforeseen events (€85 Mio.).

As  far  as  heading  5  Administration  is  concerned,  the  expenditure  needs  for  an
enlarged  Union  are  expected  to  be  present  as  from  1  January  2004.  The  recurrent
nature of the administrative expenditure should bring attention not only to the respect
of the ceiling in 2004 but also in the subsequent years.

With  regard  to  Pre-accession  aid,  while  implementing  the  decisions  taken  in
Copenhagen for Bulgaria, Romania and Turkey, the  Commission proposes  to  leave
the  ceiling  untouched  thus  leaving  a  margin  of  €1,8  billion.  This  is  subject  to  a
decision of the budget authority on the above-mentioned adjustment to the Financial
Perspective proposed by the Commission.

The following table summarises the above details and presents the  global  results of
the APS orientations. These figures establish a framework for the preparation of the
PDB 2004 although they do not prejudge the final figures.

22

Framework, by FP heading for 2004 resulting from the APS 2004 Decision
(PROVISIONAL FIGURES)

Appropriations for commitments

1. AGRICULTURE

FP ceiling - heading 1
Total heading 1*

2. STRUCTURAL OPERATIONS
FP ceiling - heading 2
Total heading 2

3. INTERNAL POLICIES

FP ceiling
Total heading 3

4. EXTERNAL ACTIONS

FP ceiling
Total heading 4

5. ADMINISTRATION

FP ceiling **
Total heading 5

6. RESERVES

7. PRE-ACCESSION AID

FP ceiling
Total heading 7***

Margin

Margin

Margin

Margin

Margin

Margin

Margin

Total appropriations for commitments
Financial Perspective
ceiling (headings 1 to 7)

Margin

Grand total -
headings 1 to 7

(in Mio. EUR, at current prices)

2003
budget

EU-15

2004
Enlarge.

EU-25

47.378
44.780
2.598

47.211
46.140
1.071

2.094
2.094
0

49.305
48.234
1.071

33.968
33.980
-12

34.326
34.326
0

6.709
6.709
0

41.035
41.035
0

6.796
6.796
0

4.972
4.949
23

5.381
5.360
21

434
0

3.386
3.386
0

7.053
7.004
49

5.082
4.996
86

1.614
1.591
23

0
0
0

5.600

557

0
0

442
0

3.455
1.610
1.845

8.667
8.594
73

5.082
4.996
86

6.157
6.137
20

442
0

3.455
1.610
1.845

102.315

103.169

10.974

114.143

2.629

99.686

3.094

111.049

figures for 2004 are preliminary estimates

*
** ceilings include adjustment to account for officials' pension contributions
*** the amount for 2004 includes EUR 1 360 million for Bulgaria and Romania, and EUR 250 million
for  Turkey,  but  does  not  include  amounts  that  remain  to  be  quantified  concerning  nuclear
decommissioning in candidate countries

The  impact  in  financial  terms  of  the  selected  initiatives  is  summarised  in  the
following tables. The figures  provided  for  each  of  the  Policy  Areas  contributing  to
the three priorities relate to changes vis-à-vis the existing financial programming for
EU-15  and  the  effect  of  new  initiatives  on  EU-10,  and  thus  reflect  the  additional
financial resources deemed to be necessary to reach the established objectives.

23

The  main  changes  displayed  in  the  tables  below  cover  internal  policies  (including
research), external actions and pre-accession aid.

6.2.1.  Financial implications of policy priorities: Accession

Table 1 - Financial resources, relating to the priority "Accession" and corresponding to the
extension of programmes to EU-10

Appropriations for commitments (in Mio. EUR)

FP Headings 3, 4 & 7

Accession

Financial Resources corresponding to the
extension of programmes to EU-10

Policy Area

2004

2005

2006

Economic and Financial Affairs

Enterprise

Employment and Social Affairs

Agriculture and Rural Development

Energy and Transport

Environment

Information Society

Fisheries

Internal Market

Taxation and Customs Union

Education and Culture

Press and Communication

Health and Consumer Protection

Justice and Home Affairs

External Relations

Trade

Enlargement *

Fight against Fraud

Commission's Policy Co-ordination and Legal Advice

Administration

Statistics

Research Framework Programme

42,5

12,9

17,0

6,3

219,0

25,0

9,7

8,7

1,7

6,4

144,0

6,8

12,0

343,8

0,6

0,9

41,5

14,0

17,5

6,6

231,0

25,0

9,8

9,0

1,7

7,4

144,0

5,7

13,0

377,1

0,7

1,1

41,5

15,0

18,0

7,0

239,0

25,0

10,0

9,0

1,8

7,2

140,0

5,7

14,0

355,5

0,7

1,2

471,0

436,0

569,0

1,2

0,9

3,5

5,7

1,3

0,8

4,5

5,8

1,5

0,8

3,4

6,5

TOTAL

480,0

1.819,6

530,0

1.883,5

590,0

2.061,8

* The amounts shown under the Enlargement Policy Area relate to pre-accession aid for Turkey (€ 250

Mio. in 2004) and institution building (€ 221 Mio. in 2004).
The amounts foreseen for Bulgaria and Romania for all three pre-accession instruments are €1 360 Mio.,
€1 502 Mio. and €1 650 Mio. for 2004, 2005 and 2006 respectively as included in the road maps.

This  first  table  relating  to  the  “accession”  priority  includes  amounts  deemed
necessary for the extension of existing programmes to the ten acceding countries.

In addition to the aforementioned extension of current programmes, there are a few
specific  transitory  measures  falling  under  Internal  Policies  that  result  from  the
conclusions of the Copenhagen European Council.

24

Thus, in the area of Transport and Energy, a total of €138 Mio. is included in 2004,
over and  above  the  appropriations relating  to the  extension  of current programmes,
with  regard  to  nuclear  safety  measures  for  the  decommissioning  of  the  nuclear
reactors of Ignalina (Lithuania) and Bohunice (Slovakia).

Under the policy area Enlargement, an amount of €221 Mio. is included for 2004 for
the  provision  of  guidance  and  increased  financial  support  to  assist  the  acceding
countries  to  strengthen  their  administrative  and  judicial  capacities.  This  institution
building transition facility represents the extension of action started  under PHARE,
which will be managed in close co-operation with the other services involved.

With regard to Justice and home affairs policy, an amount of €317 Mio. is foreseen
in 2004 to finance the implementation of the Schengen transition facility adopted by
the Copenhagen European Council of December 2002 to assist new Member States
with  the  protection  of  the  EU’s  new  external  borders.  The  transit  facility  for
Kaliningrad also falls under this Policy Area with an amount of €13 Mio. for 2004.

In the area of economic and financial affairs, an annual amount of €25 Mio. over a 4
year period, is included in respect of the Commission’s share of a proposed increase
in the EIF’s capital to ensure the continuity of the funds actions in a larger EU. An
additional amount of €13 Mio. is foreseen for a venture capital facility in the Multi-
annual programme for Enterprise and entrepreneurship12.

Should  a  political  settlement  be  reached  concerning  the  northern  part  of  Cyprus,
additional amounts for each of the  headings involved  (headings 1, 2  and 3) will be
foreseen  in  the  event  of  a  reunification  of  the  island.  At  such  a  time,  the  amounts
involved  shall  be  added  to  the  relevant  financial  perspective  ceilings,  leaving  the
margins unchanged.

The  accession  priority  also  includes  the  pre-accession  aid  foreseen  for  Bulgaria,
Romania  and  Turkey.  The  Commission  proposes  to  follow  the  amount  foreseen  in
the road map for the accession in 2007 of Bulgaria and Romania, which implies an
increase  of  the  present  amounts  by  20%,  30%  and  40%  for  the  next  3  years  to  be
complemented by a non yet determined amount for decommissioning. The shares of
the pre-accession instruments follow  the  pattern  decided  in  Berlin  but  will  be  fine-
tuned in the coming months and decided in the framework of the relevant 3 Council
regulations, taking into account the needs and absorption capacity of these countries.
As for Turkey, a significant increase to an amount of €1 050 Mio. is foreseen over
the  period,  thus  doubling  in  average  the  present  amounts.  For  2004,  €250  Mio.
should be budgeted.

Within the policy area Health and consumer protection provision is also made for the
extension  under  heading  1a  of  the  veterinary  and  phytosanitary  disease  eradication
programmes, and also for the preparation of vaccination campaigns against rabies in
the new Member States.

12

Joint initiative of DG ENTR and DG ECFIN

25

                                                
6.2.2.  Financial implications of policy priorities: Stability

Table 2 - Changes in financial resources in comparison with EU-15 financial programming,
relating to the priority "stability"

Appropriations for commitments (in Mio. EUR)

Stability

FP Headings 3, 4 & 7

Indicative changes in Financial Resources

Policy Area

2004

2005

2006

Information Society

Justice and Home Affairs

External Relations

Humanitarian Aid

3,5

14,5

147,0

10,0

175,0

6,8

3,9

150,8

10,0

171,5

8,0

5,8

157,2

15,0

186,0

TOTAL

The  initiatives  requiring  additional  financing  proposed  under  this  priority  fall  into
two  main  sections:  those  contributing  to  stability  outside  the  Union  and  those
inwardly focussed.

In  the  area  of  external  relations  to  bring  stability  and  close  the  gap  with  states
neighbouring  the  enlarged  Union  it  is  proposed  to  increase  the  support  to  the
Western Balkans, in absolute terms up to €675 Mio. (including macro-financial aid),
to mitigate the decrease following the heavy frontloading of the  first  years. For the
Mediterranean  region,  the  transfer  of  Turkey  to  heading  7  creates  space  for  other
countries  and  an  increase  up  to  €859  Mio.  in  2004  is  proposed.  Democracy  and
human rights are also reinforced, up to the level of the 2003 budget (+ €17.5 Mio) in
line with the wishes of the budgetary authority.

Appropriations for Humanitarian aid shall be increased to €485 Mio. for 2004 (+
€10  Mio  in  2004)  to  provide  assistance  wherever  stability  is  endangered  by
humanitarian  crises,  especially  in  Africa  and  Asia.  As  humanitarian  crises  tend  to
lead to migratory movements the mitigation of such crises contributes to the stability
of the European Union and its neighbours.

As  was  announced  in  the  Commission  Communication  of  3  December  2002
(COM(2002)703final), the stability priority should also include the need for a better
integration  of  migration  issues  in  the  European  Union's  relations  with  third
countries.  This  action  existed  as  preparatory  action  led  by  DG  JHA  during  2001,
2002 and 2003. It will see a specific legal basis proposed for an annual amount of 30
million (+13 Mio € in 2004). This new multi-annual programme will be included in
the  external  relations  policy  area  and  managed  in  line  with  the  principles  of  the
reform  of  the  external  aid,  respecting  the  overall  consistency  of  the  Community's
external action and alongside the other Community instruments for cooperation and
development.  It  should  be  complementary  to  the  latter  programmes  and  provide
added  value  in  particular  in  that  it  allows  the  Commission  to  implement  the
objectives  and  priorities  set  up  under  the  asylum  and  migration  policy  for  this

26

programme  and  to  address  in  a  rapid,  targetted  and  flexible  way  the  concerns  and
desires expressed by the Member States in the JHA area.

Appropriations for improved border control relate mainly to setting up an integrated
IT  system  on  visa  information  (VIS)  for  policy  area  JAI.  This  is  an  essential
prerequisite  for  the  free  movement  of  persons  in  an  area  without  internal  frontiers
adding €10 Mio. to the existing financial programming.

In the framework of enhancing rights of individuals, the DAPHNE II programme for
combating violence against children, adolescents and women (+ €1,3 Mio.), and the
network  of  experts  in  Fundamental  rights  (+  €1  Mio.)  require  additional  funding,
whilst €2 Mio. is made available for the integration of third country nationals.

A  slight  increase  is  granted  for  the  evaluation  of  the  Tampere  programme  and
preparing  the  development  of  the  next  stage  of  the  area  of  freedom,  security  and
justice,  impact  assessment  and  horizontal  needs  arising  from  the  development  of
large-scale IT projects.

The  Information  society  Policy  Area  intends  to  develop  a  policy  of  security  of
communication  networks and launch  of an  agency  for  the security  of  information
networks (+ €3,5 Mio in 2004). This is an essential prerequisite for internal security
and  border  management.  The  agency  itself  will  observe  best  practice  and  gather
expertise in view of establishing a European policy in this area.

6.2.3.  Financial implications of policy priorities: Sustainable growth

Table 3 - Changes in financial resources in comparison with EU-15 financial programming,
relating to the priority "sustainable growth"

Appropriations for commitments (in Mio. EUR)

Sustainable growth

FP Headings 3, 4 & 7

Indicative changes in Financial Resources

Policy Area

2004

2005

2006

Enterprise

Competition

Employment and Social Affairs

1,5

0,8

1,5

0,8

0,8

Energy and Transport

25,0

23,5

22,5

Environment

Direct Research

Fisheries

Trade

Development and Relations with ACP Countries

2,5

3,8

0,6

1,5

8,5

TOTAL

45,7

27

11,0

3,4

1,6

23,2

60,1

1,7

23,7

52,1

Most of the key initiatives contributing to the priority on sustainable growth have no
impact on financial resources. Some of them, however, do require additional funding
in 2004.

The new chemicals strategy aims at reshuffling the complex Community legislation
on chemicals and preparing a new regime for chemicals, and requires the creation of
a new Agency, with appropriations foreseen at the level of €3.0 Mio. in 2004, shared
between the policy areas “Environment” (€1.5 Mio.) and “Enterprise” (€1.5 Mio.).

In  the  Employment  and  social  affairs  Policy  Area,  the  European  strategy  for  the
promotion of corporate social responsibility requires the reinforcement by €1.5 Mio.
of the activity “work organisations and working conditions” for the development of
stakeholders’  networks,  the  exchange  of  experience  and  best  practices  between
Member States, criteria analysis and the dissemination of instruments related to the
social responsibility.

Policy  Area  Fisheries  requires  extra  funding  of  €0.6  Mio  for  the  establishment  of
Regional  Advisory  Councils.  The  reshuffle  of  the  application  of  EU  competition
rules  will  lead  to  the  establishment  of  a  network  of  competition  authorities,  with  a
system  of  co-ordination  by  the  Commission,  with  appropriations  of  €0.8  Mio.  in
2004.

Within the  Direct Research policy  area  a  total  amount  of  €16  Mio.  is  proposed  for
2004  (+  €3,8  Mio.)  in  order  to  proceed  with  the  Decommissioning  and  Waste
Management programme.

Under  Policy  Area  Energy  and  Transport,  the  development  of  the  European  Union
capacity  to  respond  to  oil  pollution  disasters  requires  the  reinforcement  of  the
European Maritime Safety Agency by €20 Mio.

In  addition,  the  European  Observation  system  on  the  functioning  of  the  internal
Market for conventional sources of energy is reinforced by €5 Mio.

As  programmed,  a  major  increase  (€255  Mio.)  in  the  sixth  Research  Framework
Programme will support the development of EU research in addition to the increase
foreseen  (€480  million  in  2004)  to  cover  the  extension  of  research  activities  to  the
new Member States.

As regards external actions, mainly two initiatives require additional funding:

The support to health actions (AIDS, malaria,  tuberculosis, reproductive health and
communicable diseases in developing countries) is reinforced by €17 Mio. under the
activity  “development of co-operation  policy  and sectorial strategies”,  along  with  a
redistribution of resources within the activity. Thus, altogether the level reached with
these reinforcements is in line with the amounts decided in the 2003 budget.

In  the  framework  of  promoting  sustainable  growth  in  developing  countries  and
global warming, the protection of tropical forests should be reinforced by €6 Mio to
catch up with delays incurred in recent years.

28

Moreover  in the  Environment and Development  Policy  Areas,  the  follow-up  of  the
commitments  subsequent  to  the  World  Summit  on  Sustainable  Development  in
Johannesburg requires additional funding within the existing policy envelopes.

The reinforcement of the Trade policy area reflects increase support for developing
countries in the framework of the Doha agenda.

29