Proposal for a Decision of the European Parliament and of the Council on the mobilisation of the flexibility instrument in favour of the rehabilitation and reconstruction of Iraq according to point 24 of the Interinstitutional Agreement of 6 May 1999
Date: 2003-10-01
Institutions: European Commission
Subjects: Community budget, EU financial instrument, Iraq, aid policy, commitment of expenditure, inclusion in the budget

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 1.10.2003
COM(2003) 576 final

2003/0225 (COD)

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the mobilisation of the flexibility instrument in favour of the rehabilitation and
reconstruction of Iraq according to point 24 of the Interinstitutional Agreement of
6 May 1999

(presented by the Commission)

EXPLANATORY MEMORANDUM

The present proposal aims at mobilising the instrument of flexibility in view of the financing
of  the  reconstruction  in  Iraq  for  2004  proposed  in  the  amending  letter  n°1/2004.  The
Commission proposes to mobilise the flexibility instrument up to EUR 73 951 000.

The European Council of 19 and 20 June 2003 held in Thessaloniki invited the Commission
to submit proposals for an EU contribution to the multilateral effort to assist Iraq’s transition.
In response to this invitation the Commission has adopted a Communication which provides a
common  approach  for  the  participation  of  the  European  Union  in  the  Madrid  Ministerial
Conference1,  as  well  as  setting  out  the  Community’s  contribution  to  rehabilitation  and
reconstruction until the end of 2004.

The  Commission  has  made  a  realistic  assessment  of  the  availability  of  resources  under
Heading  4  (External  actions).  It  is  therefore  proposed  that  the  Community  share  of  the
European contribution amounts to EUR 200 million over the 2003-2004 period, with EUR 40
million  mobilised  in  2003  and  EUR  160  million  in  2004.  This  amount  is  additional  to  the
EUR 100 million that ECHO is implementing in 2003.

Since  no  appropriations  have  been  included  in  the  preliminary  draft  budget  for  2004
concerning  the  Iraqi  reconstruction,  the  Commission  proposes  to  enter  EUR  160  million  in
commitment  appropriations  onto  a  new  line  (article  19  08  07  "Aid  for  rehabilitation  and
reconstruction  of  Iraq")  through  the  amending  letter  No  1  to  PDB  2004,  by  mobilising  the
margin  of  the  PDB  under  Heading  4  amounting  to  EUR  86  million  and  the  flexibility
instrument  up  to  EUR  74  million  above  the  ceiling  of  Heading  4.  As  for  payments,  it  is
estimated that EUR 128 million will be necessary, corresponding to 80% of the credits to be
committed in 2004.

1 

"The  European  Union  and  Iraq:  Approach  to  the  Madrid  Ministerial  Conference,  24  October  2003",
Communication of the Commission on the role that the EU intends to play in the reconstruction of Irak.

2

                                                
2003/0225 (COD)

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the mobilisation of the flexibility instrument in favour of the rehabilitation and
reconstruction of Iraq according to point 24 of the Interinstitutional Agreement of
6 May 1999

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having  regard  to  the  Interinstitutional  Agreement  of  6  May  1999  between  the  European
Parliament, the Council and the Commission on budgetary discipline and improvement of the
budgetary procedure2, and in particular point 24 thereof,

Having regard to the proposal from the Commission3,

Whereas:

(1)

(2)

Following  the  European  Council  of  19  and  20  June  2003  in  Thessaloniki,  the
Commission  proposes  that  the  Community  share  of  the  European  contribution
amounts  to  EUR  200  million  over  the  2003-2004  period,  with  EUR  40  million
mobilised in 2003 and EUR 160 million in 2004,

The  amount  foreseen  for  2004  was  not  entered  in  the  Preliminary  draft  Budget  for
2004.  Accordingly,  the  Commission  proposes  to  budget  the  EUR  160  million  under
the new dedicated budget line created through the amending letter No 1 to PDB 2004
(article 19 08 07). This amount will be financed by mobilising the margin of the PDB
existing  under  Heading  4  'External  actions'  of  the  financial  perspective  (EUR  86
million) and the flexibility instrument (EUR 74 million).

HAVE DECIDED AS FOLLOWS:

Article 1

For  the  general  budget  of  the  European  Union  for  the  financial  year  2004  (hereinafter  "the
2004 budget"), the flexibility instrument shall be used to provide the sum of EUR 73 951 000
in commitment appropriations.

This amount shall be used for the financing of the aid for rehabilitation and reconstruction of
Iraq,  covered  by  Heading  4  "External  actions"  of  the  financial  perspective,  under  the  new
article 19 08 07 of the 2004 budget.

2 
3

OJ C 172 of 18.6.1999, p. 1.
OJ C […], […], p. […].

3

                                                
Article 2

This decision  shall  be  published  in  the  Official  Journal  of  the  European  Union  at  the  same
time as the 2004 budget.

Done at Brussels, […]

For the European Parliament
The President
[…]

For the Council
The President
[…]

4