Communication from the Commission to the European Parliament and the Council - Annual Policy Strategy for 2005
Date: 2004-02-25
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, 25.2.2004 
COM(2004) 133 final 

COMMUNICATION FROM THE COMMISSION  
TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 

Annual Policy Strategy for 2005 

EN 

   EN 

 
 
 
  
COMMUNICATION FROM THE COMMISSION 
TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 

Annual Policy Strategy for 2005 

CONTENTS 

1. 

1.1. 

1.2. 

2. 

3. 

3.1. 

3.2. 

3.3. 

4. 

5. 

Introduction .................................................................................................................. 4 

Background .................................................................................................................. 4 

Specific features of the 2005 exercise.......................................................................... 4 

The Union’s situation in 2005...................................................................................... 5 

The policy priorities for 2005 ...................................................................................... 6 

Competitiveness and Cohesion .................................................................................... 7 

Security and European Citizenship .............................................................................. 9 

External responsibility: Neighbourhood and Partnership .......................................... 11 

Selection of initiatives for extended impact assessment ............................................ 13 

General framework for human and financial resources for 2005 .............................. 13 

5.1. 

Human resources........................................................................................................ 13 

5.1.1.  Enlargement-related reinforcement............................................................................ 13 

5.1.2.  Contribution to a central pool .................................................................................... 15 

5.1.3.  Total human resources available for the three priorities............................................ 15 

5.1.4.  Reallocation of resources freed by externalisation of activities................................. 16 

5.1.5.  Situation of the Directorates-General in the external relations field.......................... 17 

5.2. 

Financial resources..................................................................................................... 18 

5.2.1.  Financial implications of priority” Competitiveness and Cohesion”......................... 20 

5.2.2.  Financial implications of priority “Security and European Citizenship”................... 21 

5.2.3.  Financial implications of priority “External responsibility: Neighbourhood and 

Partnership”................................................................................................................ 22 

5.2.4.  Other financial implications....................................................................................... 23 

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1. 

INTRODUCTION 

1.1. 

Background 

The  Annual  Policy  Strategy  constitutes  the  first  stage  of  the  Commission’s  annual  policy 
cycle. For 2005, the following objectives will be pursued: 

– 

– 

– 

establish the policy priorities for 2005; 

identify the initiatives which will help to realise these priorities; 

adopt the budgetary framework and guidelines, so that the priority initiatives receive 
the necessary resources, and for the purpose of financial programming. 

The  Annual  Policy  Strategy  defines  the  framework  and  guidelines  for  the  budgetary  and 
legislative cycle. Following adoption of the strategy, the cycle moves on to the preparation of 
the preliminary draft budget and the interinstitutional dialogue. 

Given  the  specific  circumstances  of  the  year  2004,  with  both  the  legislative  period  and  this 
Commission’s  term  of  office  coming  to  an  end,  appropriate  provisions  have  been  approved 
for the structured dialogue: 

– 

– 

– 

The  structured  dialogue  will  entail  a  meeting  between  the  Commission  and  the 
Conference of Chairmen of parliamentary committees in April. It will be conducted 
with the Council in accordance with the usual arrangements, under the authority of 
Comity of Permanent Representatives. 

The  review  of  the  structured  dialogue  will  take  place  at  a  second  meeting  in 
September.  As  far  as  the  Council  is  concerned,  the  assessment  will  be  made  at  a 
General Affairs Council meeting in accordance with the current provisions. 

On  this  basis,  the  work  programme  will  be  drawn  up  for  adoption  by  the  new 
Commission  shortly  after  it  takes  office.  At  the  same  time,  it  will  consider  the 
priorities and approaches set out in the present decision. The work programme will 
then be presented to Parliament and the Council in December. 

The whole cycle will thus form the basis for the operational programming carried out by the 
Directorates-General  and  departments,  which  will  incorporate  the  policy  priorities  into  their 
annual  management  plans  for  2005.  The  annual  activity  reports  will  take  stock  of  the 
implementation  of  these  management  plans,  and  will  be  summarised  in  notifications  to  the 
European Parliament, the Council and the European Court of Auditors. 

1.2. 

Specific features of the 2005 exercise 

This  exercise  is  exceptional  in  that  the  current  Commission  will  establish  a  political  and 
budgetary  framework,  while  the  next  Commission  will  be  responsible  for  implementing  the 
policy priorities in 2005. On top of that, the framework will be adopted in the autumn in the 
presence of a newly elected European Parliament. 

It is, however, advisable to safeguard the continuity and consistency of the policies for which 
the Commission is responsible, and to ensure that it meets its institutional obligations. At such 
a time of change, the strategic planning and programming cycle, which was introduced as part 

4 

 
 
  
 
of the internal reform with a view to promoting better governance, must play its part fully and 
provide one of the continuity safeguards. 

This  APS  decision  has  accordingly  been  drawn  up  by  the  Commission  with  the  following 
objectives: 

– 

– 

– 

to  ensure  a  smooth  handover  to  the  next  Commission,  via  a  stocktaking  process1, 
guaranteeing  the  continuity  of  action  taken  and  drawing  attention  to  areas  where 
action will be needed after it takes up its duties in November 2004. When the new 
Commission  arrives,  it  will  consider  the  priorities  for  2005  and  chart  the  path  for 
future years; 

to prepare the ground for the next Commission, preserving as far as possible its scope 
for  political  and  budgetary  manoeuvre.  The  2005  exercise  will  be  of  particular 
importance from this point of view; 

to  ensure  consistency  with  the  priorities  outlined  for  the  post-2006  financial 
perspective. In fact, the political elements of the draft document setting out the new 
financial  perspective  will  begin  to  be  implemented  as  of  next  year.  Lastly, 
consistency  should  also  be  ensured  with  the  Council’s  first  strategic  programme 
2004-2006, adopted in December 2003. 

2. 

THE UNION’S SITUATION IN 2005 

At  Community  level,  2005  will  be  the  first  year  of  the  new  Commission,  and  therefore  the 
starting point for implementation of its policy agenda for the duration of its term of office. 

2005 will, moreover, be a key year for carrying through all of the measures connected with 
the  future  financial  perspective,  including  the  legislative  proposals  relating  to  the  next 
generation of Structural Funds, which need to be adopted by the end of 2005. 

2005 will be a crucial year to ensure proper functioning of the newly enlarged Union and the 
appropriate resources will have to be provided to meet this challenge. 

2005  could  mark  a  turning  point  in  the  process  of  ratifying  the  new  Treaty.  Preparations 
should be made for the institutional and political changes likely to result from the IGC. 

As  far  as  internal  policies  are  concerned,  having  regard  to  the  large  number  of  scheduled 
meetings, the following points must be noted: 

– 

– 

1 

the mid-term review of the Lisbon Strategy, providing an opportunity to examine in 
detail the economic, social and environmental aspects of Community policies for the 
years 2005-2010; 

re-examination  of  the  strategy  for  sustainable  development,  set  in  train  at  the 
Göteborg European Council; 

Upon taking office, the Prodi Commission set itself four strategic objectives: promotion of new forms 
of European governance; a stable Europe with a stronger voice in the world; a new economic and social 
agenda; and a better quality of life. Cf. The Commission’s strategic objectives for 2000-2005, “Shaping 
the new Europe”; COM(2000) 154 of 9 February 2000. 

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– 

– 

– 

definition of a new Social Agenda for the period after 2006; 

consolidation  of  the  European  area  of  freedom,  security  and  justice,  deriving  from 
the  Tampere  programme,  which  will  require  the  adoption  of  additional  legislative 
instruments; 

lastly, a critical stage in preparing the accession of Romania and Bulgaria is expected 
to  be  reached  in  2005,  as  well  as  continuation  of  the  pre-accession  process  for 
Turkey, including associated financial support, and possible start of the pre-accession 
process with Croatia. 

At  international  level,  it  is  likely  that  2005  will  continue  to  be  shaped  largely  by  matters 
relating to international peace, security and stability, the global fight against poverty, and the 
aftermath of the Iraq conflict: 

– 

– 

– 

bearing in mind that the year will start with a newly elected or re-elected President of 
the United States; 

according to the “roadmap”, a Palestinian State is to be established at this time; 

having  regard  to  development  and  trade  relations,  various  meetings  are  already 
planned,  notably  the  UN  review  on  progress  on  achieving  the  Millenium 
Development Goals and the revision of  the Cotonou Agreement. A further  point to 
note  is  that  January  2005  is  the  target  date  for  concluding  the  cycle  of  trade 
negotiations launched in Doha. 

3. 

THE POLICY PRIORITIES FOR 2005 

Beyond  the  policy  priorities,  there  is  one  fundamental  operational  priority  for  the 
Commission,  which  will  be  a  critical  factor  of  its  action  in  2005:  ensure  the  success  of 
enlargement and shape the future of Europe. This means guaranteeing the proper functioning 
of the enlarged Europe and the full application of the policies and rules within all the Member 
States. It will also be necessary to ensure the continuity of ongoing activities, especially the 
main  common  policies,  linked  to  cohesion  and  the  single  market.  In  this  connection,  the 
allocation  of  additional  human  resources  until  2008  will  be  crucial  in  enabling  the 
Commission to meet its institutional responsibilities. 

Besides this operational priority, the Commission has identified the policy priorities for 2005, 
in the context of an enlarged Union of 25 Member States, tying in with the objectives set in 
previous years: 

– 

– 

– 

the Commission’s central objective will be to provide a new momentum of economic 
growth, based on enhanced competitiveness and cohesion; 

the objective of stability and security will be maintained, through efforts to improve 
security and European Citizenship for a greater number of more mobile citizens; 

strengthened by its new continental legitimacy, the Union will take on a new external 
responsibility, with emphasis on the neighbourhood dimension. 

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3.1. 

Competitiveness and Cohesion 

Over the last decade, the rate of growth in the Union has fallen to a level of just 2%. At the 
same  time,  the  Union  is  about  to  welcome  ten  new  Member  States  whose  relative  weight 
accounts  for  20%  of  the  EU  population  but  only  6%  of  its  GDP.  In  view  of  the  lacklustre 
economic  performance  recorded  recently  by  the  Union  and  the  persistent  shortfall  in  our 
productivity  and  employment  rates,  and  given  our  desire  to  integrate  successfully  the  new 
Member States, an upturn in growth will be the central policy objective of the Commission, 
striving constantly to improve the competitiveness of the European model while maintaining 
prosperity,  employment,  cohesion  and  environmental  protection,  as  integral  elements  of  the 
sustainable development agenda. The stability of the macroeconomic framework, the concrete 
implementation of the Growth Initiative and the pursuit of structural reforms inherent in the 
Lisbon Strategy will be of vital importance. The proper functioning of the enlarged internal 
market and the full implementation of the acquis are crucial in this context. 

Particular emphasis should be placed on: 

– 

– 

– 

– 

industrial  policy,  whether  in  terms  of  the  manufacturing  or  services  industry. 
Services now account for two-thirds of GDP and the majority of jobs created in the 
Union; they constitute the sector where the scope for higher productivity and further 
job creation is greatest and help to maintain a solid industrial base; 

reducing  the  persistent  gap  between  Europe  and  its  main  partners  in  terms  of  the 
effort  put  into  research  and  the  development  of  human  and  technological  capital 
(including  information  and  communication  technologies,  information  society, 
lifelong learning and Erasmus Mundus); 

reinforcement of consumers’ confidence in the field of transborder transactions and 
electronic trade; 

reducing  disparities  within  the  enlarged  Union:  an  underlying  effective  cohesion 
policy  will  be  essential  for  closing  the  gap  and  helping  to  boost  the  potential  for 
growth. 

Competitiveness and Cohesion: key initiatives for 2005 

The following key initiatives have been selected: 

•  Promote better economic governance and strengthen the capacity for monitoring 

the macroeconomic and fiscal situation.  

•  Develop  and  implement  mature  projects  identified  in  the  Growth  Initiative, 
especially through extension of the trans-European networks and efforts put into 
research and the development of human and technological capital. 

•  Elaborate a new social policy agenda for the post-2006 period. 

•  Place particular emphasis on controlling state aid in the enlarged Union. 

•  Present  a  legislative  proposal  to  enforce  the  principal  of  mutual  recognition  in 

the area of goods. 

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•  Put forward a proposal on redress in the field of public procurement. 

•  In the services sector, prioritise the rapid adoption of the proposed Directive on 
services  by  the  co-legislators  and  step  up  the  bilateral  negotiations  aimed  at 
fostering access by European service companies to third-country markets.  

•  In the financial services field, put forward three legislative proposals: on clearing 
and settlement, on solvency of insurance companies, and on shareholder rights in 
stock market listed companies. 

•  Put forward new legislative proposals on corporate taxation within the enlarged 
internal  market,  aimed  at  removing  the  tax  obstacles  to  cross-border  activities, 
and simplifying the VAT-related provisions. 

•  In  the  defence  field,  put  forward  legislative  proposals  on  intra-Community 

transfers and public procurement tenders. 

•  Launch  the  development  and  implementation  of  new  air  traffic  management 
systems,  which  will  support  the  modernisation  of  the  sector  within  the 
framework of the Single Sky initiative. 

•  Propose reinforced financing of TEN for energy and transport and the creation of 
a European guarantee instrument to allow the mobilisation of public and private 
investments in favour of concrete projects. 

•  Put  forward  proposals  on  interaction  between  industrial  policy  and  other 
Community  policies,  and  how  these  policies  can  contribute  to  enhanced 
competitiveness. In-depth analysis of the ICT, defence and raw materials sectors, 
followed by concrete proposals for measures to improve their competitiveness. 

•  Put  forward  proposals  to  improve  and  simplify  legislation  in  key  industrial 
sectors,  thereby  strengthening  their  competitiveness  (e.g.  cars,  construction 
products, cosmetics), and proposals to further implement and review the policy 
the  Information  Society  (legal  framework  for  electronic 
in  favour  of 
communications; eEurope initiative). 

•  In  the  field  of  European  contract  law,  carry  on  the  preparatory  work  for  the 

common frame of reference.  

•  Adopt  proposals  for  the  seventh  Framework  Programme  for  research  and 

technological development. 

•  Promote the European Space Programme. 

•  In  the  field  of  environment,  propose  an  overall  approach  towards  thematic 
strategies  (air  quality,  sustainable  use  and  management  of  resources,  marine 
environment, and urban environment) as well as integrated solutions (including 
legislative proposals). 

8 

 
 
  
 
3.2. 

Security and European Citizenship 

The European Union must manage a land border of 6 000 km and a sea border of 85 000 km. 
The  total  of  third-country  nationals  living  in  the  EU  exceeds  14  million,  while  around  1.5 
million are arriving each year. Moreover, enlargement will accentuate the diversity of cultures 
and peoples, and will present a new challenge in the form of European citizenship as a new 
EU dimension. 

Enlargement of the Union’s territory and the increased population will require a greater effort 
and better coordination from the point of view of managing the new common borders, dealing 
with  the  increased  mobility  of  individuals  within  this  area  and  the  need  to  ensure  their 
security. In this field, the Commission has taken steps to create a European area of freedom, 
security  and  justice  in  accordance  with  the  instructions  given  by  the  Tampere  European 
Council in October 1999. This strategy will enter a second phase in 2005. 

Moreover, for the purpose of protecting Europe’s citizens from risks associated with natural 
disasters  and  environmental  or  epidemiological  crises,  the  Union  is  being  called  upon  more 
and  more  to  assist  or  take  over  from  the  Member  States  when  problems  assume  a  pan-
European dimension. To this end, the Commission  manages  a  large  number  of  programmes 
geared to protection, safety, public health, food safety, prevention and control, together with 
solidarity and crisis management funds. 

In 2005, it is proposed: 

– 

– 

to  consolidate  a  European  area  of  freedom,  security  and  justice,  started  under  the 
Tampere  programme,  entailing  the  adoption  of  additional  legislative  instruments. 
The  main  issues  to  be  addressed  will  include  asylum  and  immigration,  the  fight 
against organised crime and terrorism; 

to  focus  on  consolidating  the  right  of  everyone  to  protection  (from  natural  or 
environmental  disasters  -  through  the  enhancement  and  extension  of  the  civil 
protection  response  capacity  in  the  enlarged  Union-  and  crises  relating  to  health  or 
nuclear  energy)  and  access  to  basic  public  services  (health,  food  safety,  education, 
transport, consumer safety and a clean and healthy environment);  

– 

to promote initiatives bringing Europe closer to its citizens. 

Security and European Citizenship : key initiatives for 2005 

The following key initiatives have been selected: 

•  Preparation  of  the  second  phase  of  the  Common  Asylum  System  (including 

implementation of European Refugee Fund II). 

•  Strengthening  common  visa  policy  and  security  of  travel  documents  (including 
biometrics):  Implementation  of  VIS  (Visa  Information  System)  following 
adoption  of  the  legal  act  by  the  Council  and  coordination  of  design  and 
development of SIS II (Schengen Information System). 

•  Enhancing the role and capabilities of the European Police College (CEPOL) in 
the training of senior EU police officers, in particular by transforming CEPOL 
into a body of the European Union. 

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•  Establishing  a  genuine  European  area  of  justice  in  civil  matters,  including  the 
further development of the European Judicial Network in civil and commercial 
matters.  

•  Establishing  a  genuine  European  area  of  justice  in  criminal  matters,  including 
the adoption of common definitions of offences and sanctions for serious forms 
of crime, and development of the project “Erasmus for Judges”. 

•  Launching the new Action Plan on Drugs. 

•  Launch  of  new  initiatives  concerning  the  management  of  citizens’  electronic 
identity,  in  order  to  tackle  the  likely  intrusiveness  of  information  society 
technologies on privacy, confidentiality and intimacy. 

•  Propose an amendment to the Council Regulation on the control of trade in dual-
use items, in order to maximise its effectiveness within the enlarged Union. 

•  Improve  controls  and  supervision  efficiency  at  the  external  border  of  the 

enlarged Union. 

•  Promote  measures  fostering  security  research  (with  a  view  to  establishing  a 
comprehensive  programme  for  enhancing  European  security  through  research 
and technology). 

• 

Improve maritime safety by monitoring the prohibition of emptying tanks out at 
sea. 

•  Propose  legislation  on  a  Community  framework  for  the  safety  of  services 

provided to consumers. 

•  Extend  the  health  information  systems,  alignment  of  preparedness  for  disease 
threat, application of Standard Operational Practices for early warning systems. 

•  Ensure food safety and phytosanitary controls as well as harmonised verification 

of the health of imported animals and the safety of imported food and feed. 

•  Ensure  through  a  network  of  Community  Reference  Laboratories  a  harmonised 

approach in testing and control of chemical and biological contaminants. 

•  Implement a new framework for labelling of feed and extend the existing rapid 

alert system for food and feed to non-EU countries. 

•  Modify the Directive Television Without Frontiers. 

•  Negotiate  an  international  convention  on  cultural  diversity  under  the  UNESCO 

framework.  

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3.3. 

External responsibility: Neighbourhood and Partnership 

The  Union’s  new  dimension  and  the  new  external  borders  resulting  from  enlargement  will 
make  it  necessary  to  put  in  place  a  stable,  comprehensive  political  framework  with  the 
neighbouring  countries  of  the  south  and  the  east.  Once  enlargement  becomes  a  reality,  the 
implementation  of  this  second  sphere  of  prosperity  and  stability  will  be  the  central  external 
priority. 

With this in mind, the Commission will implement a new EU neighbourhood policy and will 
strive to promote intra-regional cooperation. This new policy is aimed at neighbouring States 
which are not (with the exception of Western Balkan countries) candidates for EU accession. 
This  approach  will  be  underpinned  by  a  proposal  to  be  presented  to  the  Council  in  spring 
2004,  comprising  a  strategy  paper,  country-specific  reports,  proposed  action  plans  and  an 
outline New Neighbourhood Instrument. 

As far as the countries of the Western Balkans are concerned, the stabilisation and association 
process will remain the policy cornerstone. 

Furthermore,  in  2005,  the  Commission’s  external  action  will  be  geared  to  achieving  further 
objectives, namely: 

– 

– 

– 

contributing  to  the  completion  of  the  ongoing  enlargement  process,  entailing 
preparation for the accession of Romania and Bulgaria. In addition, and in the light 
of  decisions  taken  in  2004,  the  Commission  will  continue  implementing  the  pre-
accession  strategy  with  Turkey  and  might  enter  into  an  active  phase  of  negotiation 
with Croatia; 

the  enlarged  Union  can  and  must  assume  greater  global  responsibility.  The 
Commission  will  be  required  to  play  a  greater  role  in  promoting  sustainable 
development  in  line  with  Europe’s  international  commitments,  including  the 
Millennium  Development  Goals,  which  will  need  to  be  reviewed  in  2005.  The 
Union’s  integrated  commercial  policy  and  its  vital  role  in  promoting  development 
will lead it to take on greater responsibility in multilateral governance; 

lastly,  the  Union’s  expansion  will  go  hand  in  hand  with  increased  international 
responsibility and will require even more coherence in its external actions, using all 
the instruments available. The future Foreign Affairs Minister will have a crucial role 
to play here. This increased coherence will allow the EU to better address Europe’s 
challenges  and  threats  as  set  out,  inter  alia,  in  the  European  Security  Strategy2  and 
will include the establishment of appropriate crisis-management capacity combining 
civilian  and  military  means,  while  ensuring  that  humanitarian  aid  remains 
independent from political considerations. 

External responsibility: Neighbourhood & Partnership: key initiatives for 2005

The following key initiatives have been selected: 

•  Particular  emphasis  will  be  placed  on  the  stabilisation  and  association  process 
with the countries of the Western Balkans. Strengthen the capacity for economic 
monitoring and advising the countries of the region.  

2 

Endorsed by the European Council in December 2003. 

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•  On  the  basis  of  guidelines  to  be  adopted  in  the  spring  of  2004,  enter  into  an 
active phase of neighbourhood policy, especially by means of action plans with a 
number  of  the  countries  concerned,  on  the  basis  of  shared  values  in  particular 
democracy,  human  rights,  rule  of  law  and  respect  of  minorities.  Create  a  more 
productive  framework  for  trade  and  investment,  including  rules  of  origin,  at 
regional  level.  Step  up  economic  monitoring  of  the  region.  Strengthen  the 
regulatory  dialogue  and  promote  the  development  of  "ACAAS"  (Accreditation 
and  Conformity  Assessment  Agreements).  Extend  the  Charter  for  Small 
Enterprises to these countries. 

•  Extend  the  internal  energy  and  transport  market  to  Balkan  and  Mediterranean 

countries. 

•  Take forward the creation of four common spaces with Russia (economic space ; 
space  of  freedom,  security  and  justice ;  space  of  co-operation  in  the  field  of 
external security ; space of research and education, including culture) through the 
development  of  a  joint  Action  Plan,  including  and  with  specific  reference  to 
energy matters. This work will need to draw on ongoing positive co-operation in 
specific fields (e.g. approximation of legislation in the customs field). 

•  Conclude trade negotiations with Mercosur. 

•  Strengthen the Union’s relations with Gulf countries, especially Iran, and seek to 

conclude negotiations with the Gulf Cooperation Council. 

•  Ensure the Union’s contribution to the reconstruction process in Iraq. 

•  Extend and implement international fishery agreements, in particular with Russia 

and Libya. 

•  Review  and  scaling  up  of  the  EU  contribution  to  the  Millennium  Development 

Goals.  

•  Support  African  efforts  to  ensure  peace  and  stability  on  the  African  continent, 

and to make the Peace Facility for Africa operational. 

•  Launch an EU Water Facility to implement the EU Water Initiative proposed at 

the Johannesburg Summit (2002). 

•  Ensure  the  Union's  role  as  a  key  contributor  in  the  UN  World  Summit  on 

Information Society II to be held in Tunis in November 2005. 

•  Present to the Council a revised regulation on the rapid reaction mechanism with 
a view to making it more effective in times of crisis. Increase Europe’s capacity 
against  weapons  of  mass  destructions  and  towards  destructions  of  post-conflict 
conventional stocks. 

•  In  the  interest  of  better  international  governance,  promote  the  development  of 
regulatory  dialogue  for  financial  markets,  data  protection  and  vocational 
qualifications. 

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4. 

SELECTION OF INITIATIVES FOR EXTENDED IMPACT ASSESSMENT 

The Commission’s Communication of 5 June 2002 on Impact Assessment3 introduced a new 
integrated procedure for impact assessment of all its major proposals, i.e. those presented in 
the Annual Policy Strategy or the annual Legislative and Work Programme. The objective of 
the new procedure is to improve the quality and coherence of the policy development process 
and  to  increase  transparency  and  communication  with  Europe’s  citizens  on  the  expected 
impact of Europe-wide initiatives and legislation. This new procedure integrates, streamlines 
and  replaces  all  existing  separate  impact  assessments  previously  used  in  the  analysis  of 
Commission proposals. 

The  selection  of  proposals  for  extended  impact  assessment  is  one  part  of  the  Commission 
planning and programming cycle. The Commission decides in the Annual Policy Strategy or 
at the latest in its annual Legislative and Work Programme which proposals should undergo 
an extended impact assessment. In deciding, it takes the following criteria into account: 

– 

– 

– 

Whether the proposal will have a substantial economic, environmental and/or social 
impact on a specific sector or several sectors;  

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. 

2003  was  the  first  year  of  implementation  for  the  new  impact  assessments  that  have  been 
prepared for several major and cross-cutting proposals. In 2004, the Commission departments 
will progressively extend the use of impact assessments with the aim of making it common 
practice in 2005, covering major policy-defining/pre-legislative documents and all legislative 
proposals  with  a  significant  economic,  social  and/or  environmental  impact  listed  in  the 
Commission’s  legislative  and  work  programme.  The  impact  assessment  of  Commission 
proposals  should  be  proportionate  and  the  depth  of  the  analysis  should  correspond  to  the 
significance of the impacts. 

5. 

GENERAL FRAMEWORK FOR HUMAN AND FINANCIAL RESOURCES FOR 2005 

5.1. 

Human resources 

5.1.1.  Enlargement-related reinforcement  

In  its  Communication  “Activities  and  human  resources  of  the  Commission  in  the  enlarged 
European  Union”4,  the  Commission  estimated  that  extending  its  work  to  the  new  Member 
States  would,  once  the  whole  operation  was  fully  up  and  running  (in  2008),  imperatively 
require  the  recruitment  of  3 900  additional  members  of  staff5.  This  increase  ought  to  occur 
between  2004  and  2008  in  line  with  the  financial  perspective  adjustments  for  an  enlarged 
Community.  

3 
4 
5 

COM(2002) 276 final. 
Communication of 5 June 2002, COM(2002) 311 final. 
This corresponds to an increase of 3 400 officials on the operating budget, 560 external staff and 150 
research posts. On the other hand, provision is made for a reduction of the equivalent of 210 external 
staff financed from the pre-accession programmes. 

13 

 
 
  
 
                                                 
In  the  context  of  the  APS  2005  exercise,  the  Commission  intends  to  make  it  clear  that  this 
request for 3 900 persons is crucial for the functioning of the enlarged Union. In this respect 
the Commission acknowledges the fact that its requests up to now have been satisfied by the 
Budgetary  Authority.  Nonetheless,  the  Commission  underlines  the  importance  of  the 
outstanding  requests  for  posts  up  to  2008  and  asks  the  Budgetary  Authority  to  endorse  this 
pledge  in  order  to  enable  the  Commission  to  fulfil  its  institutional  responsibilities  in  the 
context of enlargement. 

Following the request for 1280 posts made in 2004, another important frontloading of human 
resources would have been necessary in 2005 in order to insure the proper functioning of the 
enlarged Union and the full application of the policies and rules within all the Member States. 
However, in the light of the current budgetary constraints, the request in 2005 is for a limited 
net increase of 700 posts related to the Union’s enlargement. 

The recruitment of these 700 people constitutes, for 2005, the indispensable basis for carrying 
forward the management and supervision of Community programmes, and for implementing 
the  acquis  communautaire  within  the  enlarged  Union.  The  Commission  will  use  these  new 
resources to deal with the extension of its tasks following enlargement and to pursue the three 
policy  priorities  of  the  enlarged  Union  (“competitiveness  and  cohesion”,  “security  and 
European citizenship” and “external responsibility: neighbourhood and partnership”), with the 
ten new Member States being fully involved in this work. 

The  slower,  more  gradual  build-up  of  these  new  human  resources,  linked  to  the  fact  that 
almost half of them will be dedicated to the language services, will negatively impact on the 
Commission capacity to meet its institutional obligations.  

The  language  services  will  indeed  be  given  the  necessary  staff  and  financial  resources6  to 
provide quality services in the new languages, with due regard also to the overall constraints 
mentioned above. The Commission intends to give thought to the most appropriate ways of 
strengthening  the  capacity  of  these  services  to  satisfy  steadily  increasing  demands  in  the 
future. 

The initiatives taken by the Commission for promoting better economic governance will also 
require  the  allocation  of  extra  human  resources  to  this  policy  sphere,  but  the  restrictions 
imposed in 2005 prevent this requirement from being fully satisfied. 

The  Commission  intends  to  give  thought  to  the  general  organisation  of  its  internal  audit 
activity,  so  as  to  improve  coordination  between  departments,  make  them  more  independent 
and,  through  a  process  of  interaction,  strengthen  the  overall  audit  capability.  Based  on 
currently available resources, the Commission's Internal Auditor cannot fully comply with his 
mission concerning the audit of Community Agencies.  

The  Commission  notes,  lastly,  that  the  proposed  creation  of  a  European  Administration 
School  will  go  some  way  to  facilitating  integration  of  new  officials.  The  School  will  be 
allocated resources by the participating institutions but will also be reinforced on a net basis 
as provided for in this communication, in a manner commensurate with the accomplishment 
of its tasks in an enlarged Union. 

6 

up to EUR 10 million over the period in accordance with the communication 2003-08 on the medium 
term staffing needs for enlargement. 

14 

 
 
  
 
                                                 
5.1.2.  Contribution to a central pool  

Beyond these 700 posts, the Commission must mobilise additional resources to implement the 
priority initiatives in 2005. It proposes to do so by way of redeployment within and between 
departments.  This  will  cover  initiatives  corresponding  to  the  three  priorities  where  they  are 
independent of enlargement. 

Consequently, as in previous years, it is proposed that a central redeployment pool be set up, 
drawing  generally  upon  all  staff.  The  Commission  departments  have  already  contributed  in 
large numbers to various major internal redeployment exercises, and the contributions sought 
in 2005 for a central pool serving the three priorities of the enlarged Union will accordingly 
be limited to a small percentage (between 0.85% and 1% of operational staff), adjusted to take 
account of the internal redeployment effort of each DG. 

In this connection, any savings resulting from externalisation (generally entailing restoration 
of posts) will have to be redirected towards the priority policy objectives. 

In addition, identifying negative priorities and other ways in which staff may be re-assigned to 
tasks  linked  to  priority  needs  (restructuring,  review  of  decision-making  and  management 
processes, a better balance between horizontal and operational activities, etc.) will be regarded 
as a fundamental element in justifying any request for new resources.  

5.1.3.  Total human resources available for the three priorities 

On  the  basis  of  the  key  initiatives  identified,  the  following  policy  areas  will  be  mainly 
targeted: 

•  As  regards  the  “competitiveness  and  cohesion"  priority:  economic  and  financial 
affairs,  enterprise,  agriculture  and  fisheries,  regional  policy,  internal  market, 
employment  and  social  affairs,  environment,  health  and  consumers  protection, 
information society, research, transport and energy, taxation and customs union;  

•  As  regards  the  “security  and  European  citizenship”  priority:  justice  and  home 
affairs,  health  and  consumer  protection,  education  and  culture,  transport  and 
energy;  

•  As regards the “external responsibility: neighbourhood and partnership” priority: 
external relations, trade, justice and home affairs, taxation and customs union. 

The  table  below  summarises  the  human  resources  which  are  expected  to  be  needed  for 
launching  new  initiatives  or  reinforcing  ongoing  activities,  by  priority  and  according  to 
source. 

15 

 
 
  
 
APS priorities in 
2005 

New human 
resources 
related to 
enlargement 

Redeployment 
between 
departments 

Redeployment 
within 
departments  

Total human 
resources 
available for 
the priorities 

255 

92 

6 

70 

46 

69 

145 

40 

41 

470 

178 

116 

347 

0 

161 

508 

1. Competitiveness 
and Cohesion 

2. Security and 
European 
Citizenship 

3. External 
responsibility: 
Neighbourhood 
& Partnership 

Extension of 
existing activities 
in an enlarged 
Union (including 
phasing-out of pre-
accession 
activities) 

TOTAL 

700 

185 

387 

1272 

The  allocation  of  new  enlargement-related  resources  by  policy  area  will  be  finalised  during 
the  preparation  of  the  2005  preliminary  draft  budget,  including  the  breakdown  between 
establishment posts and external personnel. Confirmation of the request for 700 new posts in 
the PDB presupposes resolution of the heading 5 financing problem described in the relevant 
section of the communication. 

5.1.4.  Reallocation of resources freed by externalisation of activities 

The  White  Paper  on  reform7  states  that  externalisation  is  one  way  of  implementing  the 
strategy to refocus the Commission on its core tasks and policy priorities. It ought thus to free 
resources which will be reallocated to support the priorities identified by the Commission.8 

As stated in the Council Regulation on executive agencies9, the posts of officials seconded to 
an agency by the Commission will not be filled during the period in question and the budget 
of  the  Commission  will  be  calculated  on  the  basis  of  the  posts  vacant.  The  Regulation  also 
confirms the possibility of reallocating the administrative resources freed by transferring tasks 
from Commission departments to an executive agency. The Commission must then inform the 
Budgetary  Authority,  under  the  budgetary  procedure,  and  justify  the  reallocation  of  these 

7 
8 

9 

COM(2000) 200 of 1 March 2000. 
See  points  1  and  7  of  the  Report  of  the  Planning  and  Coordination  Group  on  Externalisation. 
“Externalisation  of  programme  management"  of  15  May  2000  -  SEC(2000)  823/2  and  point  3  of  the 
Memorandum  from  the  President  "Matching  the  Commission’s  activities  with  its  human  resources  – 
The means to achieve our objectives” of 25 July 2000 – SEC(2000) 2000/2. 
Regulation (EC) No 58/2003 of 19 December 2002 – OJ L 11, 16.1.2003, p. 1. 

16 

 
 
  
 
 
                                                 
resources in line with the decision on the APS, which constitutes the integrated framework for 
setting the priorities and allocating the resources of the Commission. 

Two executive agencies are due to be set up in 2004. The TREN executive agency, on which 
a decision has already been taken, will be responsible for implementing the Intelligent Energy 
for  Europe  programme,  allowing  for  the  reallocation  of  a  total  of  eight  posts  by  2005.  The 
creation and impact, in terms of reallocation, of the SANCO agency for managing the public 
health programme are still being studied. If the agency gets the go-ahead, the human-resource 
implications  will  become  clear  in  the  course  of  the  annual  resource  allocation  cycle 
(APS/PDB).  

In 2005, DG EAC should have at its disposal an executive agency designed mainly to take the 
place of the Technical Assistance Offices, with responsibility10 for implementing the Socrates, 
Leonardo, Youth and Media Plus programmes. 

Should the Commission decide to set up these agencies, it will have to affirm the principle of 
reallocation of the resources thus freed, on the basis of the cost-benefit analysis required by 
the Regulation. The reallocated resources must be identified in accordance with the wishes of 
the Budgetary Authority.  This  procedure will be  reviewed  where necessary in the  course of 
the  cycle,  taking  fully  into  account  the  priority  needs  defined  in  the  APS  decision  and 
according to the applicable procedures depending on the nature of the agencies (executive or 
not). 

5.1.5. 

Situation of the Directorates-General in the external relations field 

The  Commission  confirms  the  need  to  make  proposals  for  the  organisation  of  the  Relex 
departments for the new Commission and reiterates its intention of drawing up a report which 
will be prepared under the authority of the Commission President on the most effective way 
of organising the departments responsible for external relations. 

Once the enlargement of the Union has taken place, a number of key dossiers identified by the 
Commission for 2005 (Neighbourhood policy, Stabilisation and association process with the 
Western  Balkans),  whose  further  progress  depends  on  decisions  to  be  taken  in  2004 
(pre-accession  strategy  with  Turkey,  launch  of  the  process  with  Croatia),  will  have  to  be 
managed by the reorganised Relex departments.  

On  the  subject  of  external  aid  management,  the  process  of  deconcentration  is  widely,  and 
correctly,  under  way.  It  is  therefore  suggested  that  the  activities  of  DG  AIDCO  be 
reconfigured, for appraisal in conjunction with its role within the Relex family.  

Moreover,  the  application  of  common  solutions  appears  to  be  necessary  for  taking  certain 
administrative requirements into account: in respect of personnel, informatics, reform of the 
accounting system, training, audit and verification, etc. 

The  aim  is  therefore  to  ensure  that  the  APS  2005  decision  is  consistent  for  each  policy 
priority,  regardless  of  the  future  administrative  structure  responsible  for  implementing  it. 
Generally speaking, the priority initiatives proposed by the DGs of the Relex family will be 
served by reallocation within the Relex family. 

10 

The agency’s exact remit has not yet been determined, nor has the impact on the human resources of 
DG EAC. 

17 

 
 
  
 
                                                 
At  the  same  time,  any  progress  made  by  the  Intergovernmental  Conference  and  the 
administrative underpinning of the Foreign Minister should be taken into consideration for the 
structure of the Directorates-General operating in the external relations sphere. 

5.2. 

Financial resources 

The financial perspective ceilings are fixed at 1999 prices and thus need to be translated into 
current  prices  by  the  application  of  deflators,  in  accordance  with  point  15  of  the 
Interinstitutional Agreement (IIA)11. This technical adjustment is carried out each year by the 
Commission, in advance of the budgetary procedure, on the basis of the most recent economic 
forecasts  available.  Concerning  the  2005  procedure,  the  adjustment  was  carried  out  in 
December 200312, and involved a reduction in the applied deflator. 

The  result  is  a  substantial  reduction  in  the  ceilings  at  current  prices  of  the  various 
headings of the financial perspective. This is a particular problem for headings 3, 4 and 5, 
where the reductions were of EUR 134 million, 76 million and 94 million respectively. Such 
decreases in the ceilings have resulted in a very challenging situation in which it has proven 
necessary to implement reductions in a number of programmed amounts, in order to finance 
important initiatives, while at the same time leaving a sufficient margin under the heading 3, 
as  required  by  the  IIA.  Given  the  recent  agreement  between  the  two  arms  of  the  budgetary 
authority  concerning  the  additional  envelopes  to  be  allocated  to  co-decided  programmes 
following the enlargement of the Union, such reductions, where they have proven necessary, 
have been limited to amounts relating to programmes that are not co-decided.  

Concerning  heading  1  “Agriculture”,  the  provisional  estimate  for  2005  is  EUR  50  754 
million,  although  the  amount  entered  in  the  PDB  2005  will,  in  particular,  depend  on  the 
average EUR-USD exchange rate during the first quarter of 2004. 

In regard to  heading 2 “Structural Actions”, the  expenditure  is fully entered into the annual 
budget  in  accordance  with  the  IIA,  leaving  no  margin  under  the  ceiling  of  this  financial 
perspective heading. The expenditure for the new Member States is based on the Copenhagen 
conclusions. 

Expenditure allocated within heading 3 “Internal policies” leaves a margin under the ceiling 
of EUR 54 million. This is the net result of: 

- additional appropriations (EUR 33 million) allocated to new initiatives; 

- a number of reductions in programmed amounts. The bulk of these reductions relate to the 
withdrawal  or  re-examination  of  proposals  previously  tabled  (EUR  90  million  -  see  second 
paragraph of pt. 5.2.4 for details); 

-  reprogramming  of  appropriations  relating  to  the  Sixth  Research  Framework  Programme 
(EUR 33 million); 

-  a  marginal  reduction,  amounting  to  a  total  of  about  EUR  18  million,  in  non  co-decided 
amounts across a number of policy areas. 

11 

12 

Interinstitutional Agreement of 6 May 1999 on budgetary discipline and improvement of the budgetary 
procedure,  OJ  C  172,  18.6.1999,  p.  1.  As  regards  the  ceiling  for  heading  1  and  the  figure  for  the 
Structural Funds in heading 2, a standard deflator, fixed at 2% a year, is applied. As far as the ceilings 
of the other headings are concerned, a GNI (Gross National Income) deflator is applied. 
COM(2003) 785. 

18 

 
 
  
 
                                                 
Framework, for FP heading 3 resulting from the APS 2005 Decision 

(PROVISIONAL FIGURES) 

Appropriations for commitments 

3. INTERNAL POLICIES 

 FP ceiling 

 Total heading 3 

(in Million EUR, at current prices)

2004 
budget13(
EU-25)  Fin. Prog.

2005 

∆ APS  APS 2005

8 722,0

9 012,0 

9 012,0

8 683,8

9 065,4 

-107,4 

8 958,0

Margin 

38,2

-53,4 

+107,4 

54,0

As  far  as  category  4  “External  actions”  is  concerned,  the  challenging  situation  is  rendered 
more  complex  by  the  financing  needs  of  the  European  Union’s  proposed  continued 
participation in the reconstruction of Iraq (EUR 200 million earmarked for 2005). In order to 
enable  this  initiative  to  be  carried  out,  a  thorough  examination  of  potential  reductions  in 
programmed  amounts  has  been  carried  out  as  required  by  point  24  of  the  IIA.  From  this 
analysis,  it  is  clear  that  only  a  part  of  this  new  expenditure  can  be  financed  within  the 
expenditure ceiling, without affecting the Union’s current policy stance and policy priorities. 
The Commission will therefore propose that the remaining needs be financed by making use 
of the flexibility instrument, as provided for by point 24 of the IIA. 

Framework, for FP heading 4 resulting from the APS 2005 Decision 

(PROVISIONAL FIGURES) 

Appropriations for commitments 

4. EXTERNAL ACTIONS 

 FP ceiling 

 Total heading 4 

(in Million EUR, at current prices)

2004 
budget14(
EU-25)  Fin. Prog.

2005 

∆ APS  APS 2005

5 082,0

5 119,0 

5 119,0

5 176,6

5 066,7 

+160,2 

5 226,9

Margin 

-94,6

52,3 

-160,2 

-107,9

13 
14 

Budget 2004 + PDAB No 1/04. 
Budget 2004 + PDAB No 1/04. 

19 

 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
In  terms  of  heading  5  “Administration”,  the  situation  is  very  difficult.  The  effect  of  the 
evolution  of  normal  expenditure  (salaries  and  current  expenditure,  such  as  rent)  and  the 
impact  of  the  new  posts  in  2004,  combined  with  the  reduction  of  EUR  94  million  in  the 
current  ceiling  following  the  technical  adjustment,  left  a  rather  substantial  negative  margin. 
Thus,  in  order  to  allow  the  request  of  new  posts  for  all  institutions  foreseen  in  2005  for 
enlargement,  the  Commission  and  other  institutions  will  have  to  significantly  review  their 
current  expenditure  and  investments  programming  and,  if  necessary,  envisage  exceptional 
measures  producing  economies  on  administrative  expenditure.  Indeed,  during  the  course  of 
the  conciliation  of  24  November  2003,  the  Council,  European  Parliament  and  European 
Commission  called  upon 
to  provide  a 
the  Secretaries-General  of  all 
reprogramming of administrative expenditure to take account of the new situation regarding 
the ceiling. The results of this analysis will not be available until the end of February. Should 
the  conclusions  indicate  that,  even  with  extraordinary  economies,  it  will  not  be  possible  to 
cover  the  financing  of  all  the  new  enlargement-related  posts  programmed  for  2005  for  the 
various institutions (e.g. for the European Parliament), then the Commission will review the 
situation and make appropriate proposals.  

institutions 

Concerning “Pre-accession strategy” (heading 7), no changes are proposed to the previously 
programmed amounts. 

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, and thus reflect the additional financial 
resources deemed necessary to fulfil the established objectives. The changes displayed in the 
tables below cover internal policies and external actions. 

5.2.1.  Financial implications of priority” Competitiveness and Cohesion” 

Table 1 - Changes in financial resources in comparison with EU-25 financial programming, relating 
to the priority "competitiveness and cohesion" 

Appropriations for commitments (in Million EUR) 

FP Headings 3 & 4 

Policy Area 

Enterprise 

Energy and Transport 

Administration 

Competitiveness and 
Cohesion 

Indicative changes in 
Financial Resources 

2005 

2006 

8,7

10,0

18,7

2,0 

3,0 

5,0 

TOTAL

Within the transport and energy policy area an amount of EUR 2 million is allocated in 2005 
(and  EUR  10  million  in  2006)  to  defining  the  specifications  of  a  European  air  traffic 
management  system  due  to  be  in  place  by  2015.  The  project  will  involve  aeronautical 

20 

 
 
  
 
 
 
 
constructors,  airports  as  well  as  operators  from  the  telecommunications  industry  and  will 
eventually be carried out by a joint enterprise. 

As  for  the  Trans-European  Networks  (TENs),  a  legislative  proposal  is  currently  with  the 
Council and European Parliament to increase the associated financial envelope by EUR 200 
million over the period 2005-2006 as a result of enlargement. This amount is already included 
in the current financial programming. Mature projects identified in the Growth Initiative could 
be  allocated  funds  within 
increased  TEN  financial  envelope,  allowing  rapid 
implementation of a number of clearly identified projects that are ready to be launched, thus 
contributing to the growth initiative. 

this 

For  production  and  dissemination  in  20  languages  of  the  public  procurement  notices 
published  in  the  Supplement  to  the  Official  Journal  dedicated  to  public  procurement, 
appropriations  are  raised  to  EUR  32,5  million  for  2005  (+  EUR  3  million  within  the 
Administration policy area). 

Finally,  although  during  the  course  of  the  budgetary  procedure  relating  to  the  2004  budget, 
the budgetary authority rejected the preparatory action proposed by the Commission in order 
to begin preparations for the establishment of the new Chemicals Agency, which is scheduled 
for  2006,  the  Commission  confirms  the  necessary  preparatory  work  for  this  agency  and 
furthermore increases the allocation in 2006 by EUR 8,7 million. 

5.2.2.  Financial implications of priority “Security and European Citizenship”   

Table 2 - Changes in financial resources in comparison with EU-25 financial programming, relating 
to the priority "Security and European citizenship" 

Appropriations for commitments (in Million. EUR) 

FP Headings 3 & 4 

Policy Area 

Energy and Transport 

Direct Research 

Press and Communication 

Area of Freedom, Security and Justice 

Security and European 
Citizenship 

Indicative changes in 
Financial Resources 

2005 

2006 

3,0 

10,0 

5,4 

9,7 

6,0

-3,0

4,3

6,8

TOTAL

28,1 

14,1

Under the area of freedom, security and justice, an amount of EUR 1,7 million is allocated in 
2005 for the development of secured information and communications facilities for Eurojust. 
This will include a Virtual Private Network for the transmission of case-related documents. 

Within the same policy area, it is proposed to increase to EUR 14,5 million in 2005 (+ EUR 4 
million) the appropriations allocated to the development of the Schengen Information System 
II,  following  the  feasibility  study  which  indicated  a  spending  profile  slightly  different  from 
the one originally planned. 

21 

 
 
  
 
 
It  is  proposed  to  reinforce  this  domain  by  a  further  EUR  3  million  in  2005  to  allow  the 
CEPOL  (European  Police  College),  dedicated  to  the  training  of  senior  law-enforcement 
officials,  to  be  converted  from  its  current  status  as  a  network  of  national  training  institutes 
into a European legal body as of 2005.  

Within the energy and transport policy area, an amount of EUR 2 million is proposed in 2005 
for  the  provision  of  a  satellite  surveillance  system  for  maritime  vessels,  in  order  to  monitor 
vessels  that  pollute  EU  waters  thereby  enforcing  the  new  regulation  which  prohibits  the 
emptying of tanks out at sea. As a complement to this15, EUR 1 million is proposed for 2005 
(EUR  2  million  in  2006)  for  a  feasibility  study  and  measures  for  the  coordination  of  EU 
coastguard services. 

Within the area of Direct Research, an additional EUR 10 million will be allocated in 2005 to 
nuclear decommissioning, raising total appropriations for the year to EUR 37,5 million. This 
will permit the necessary waste management as well as the transfer to the USA, before 2006, 
and final disposal of spent fuel elements based on Highly Enriched Uranium of US origin. 

It is also proposed to increase the allocation for the press and communication policy area in 
2005 by EUR 5,4 million, in particular to take into account the increased need for information 
outlets following enlargement. 

Finally,  the  Commission  confirms  the  preparatory  action  on  security  research  proposed  in 
2004, which for each of the years 2005 and 2006 is allocated an amount of EUR 24 million, 
as already included in the current financial programming. 

5.2.3.  Financial  implications  of  priority  “External  responsibility:  Neighbourhood  and 

Partnership”  

Table 3 - Changes in financial resources in comparison with EU-25 financial programming, relating 
to the priority " External responsibility : Neighbourhood & Partnership " 

Appropriations for commitments (in Million. EUR) 

FP Headings 3 & 4 

External responsibility: 
Neighbourhood & 
Partnership 

Indicative changes in 
Financial Resources 

Policy Area 

2005 

External Relations 

TOTAL

200,0

200,0

In  the  external  relations  domain,  work  is  to  continue  on  the  contribution  to  the  stability, 
prosperity  and  democratisation  of  Iraq.  Following  the  pledge  made  during  the  Madrid 
Ministerial  Conference,  EUR  200  million  has  been  entered  in  the  EU  budget  for  the 
2003-2004 period. It is now proposed to extend the EU contribution in 2005. An amount of 
EUR  200  million  is  thus  proposed  to  support  the  reconstruction  and  political  and  economic 
transition, thereby contributing to the stabilisation of the region. 

15 

in response to a proposal made by the European Parliament on 13 January 2004. 

22 

 
 
  
 
 
                                                 
The  Wider  Europe  initiative  has  already  involved  a  substantial  upward  reprogramming  of 
category  4  appropriations  for  2004  to  align  these  with  the  new  strategy  relating  to  this 
initiative  and  the  ‘new  neighbours’  approach.  The  budgetary  authority  confirmed  the 
approach to a large extent, in the context of the 2004 budget, and therefore at this stage only 
marginal adjustments are necessary. 

5.2.4.  Other financial implications 

A number of reductions have been introduced within heading 3. Some result from changes in 
circumstances  while  others  are  being  carried  out  in  order  to  establish  a  sufficient  margin 
under the ceiling for the start of the budgetary procedure, as well as allow the financing of the 
new initiatives mentioned above. 

With  respect  to  the  original  amounts  programmed,  events  have  led  to  reductions  in 
appropriations within the Economic and Financial Affairs policy area, where EUR 25 million 
originally allocated to the capital increase of the EIF will no longer be disbursed during 2005, 
and  in  the  Transport  and  Energy  area,  where  an  amendment  to  increase,  for  the  border 
regions, the TENs envelope by EUR 100 million (55 million 2005 and 45 million in 2006) has 
finally been withdrawn by the Commission following lengthy discussions with the Council. In 
the same policy area, a revision of spending estimates has led to a cut of EUR 10 million in 
2005 in the appropriations to be dedicated to anti-pollution measures. 

The  reductions  implemented  within  category  3  to  re-establish  the  margin  in  2005  include 
EUR 33 million within the research area, for which a front-loading exercise was carried out in 
2003, as well as a number of other minor adjustments carried out on a number of policy areas 
to the financial resources dedicated to non co-decided programmes. 

Within  category  4,  under  the  Fisheries  policy  area,  appropriations  are  increased  by  EUR  6 
million  to  EUR  200  million  to  enable  the  renegotiation  of  three  international  fisheries 
agreements together with the financing of a number of new agreements due to be concluded 
by the end of 2004, provided that the agreements comply with the objective of sustainable and 
responsible fishing as foreseen by the revised Common Fisheries Policy.16 

A second adjustment under this category, for 2005, relates to reallocation within the External 
Relations  policy  area  to  allow  for  EUR  13  million  to  be  dedicated  to  the  newly  established 
programme for financial and technical assistance to third countries in the areas of migration 
and asylum (AENEAS). 

16 

If appropriations relating to these fisheries agreements prove insufficient, the Commission will propose 
appropriate measures as foreseen in the Interinstitutional Agreement of 6 May 1999. 

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