European Parliament resolution on the draft general budget of the European Union for the financial year 2005, Section III — Commission (C6-0123/2004 — 2004/2001(BUD))
Date: 2004-10-28
Institutions: European Parliament
Subjects: budget policy, draft budget, general budget (EU), interinstitutional relations (EU)

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TEXTS ADOPTED

P6_TA(2004)0038

2005 draft general budget: Section III

European Parliament resolution on the draft general budget of the European Union for the financial
year 2005, Section III — Commission (C6-0123/2004 — 2004/2001(BUD))

The European Parliament,

— having regard to Article 272 of the EC Treaty and Article 177 of the Euratom Treaty,

— having regard to Council Decision 2000/597/EC, Euratom of 29 September 2000 on the system of the

European Communities' own resources (1),

— 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 procedure (2),

— having regard to its resolution of 22 April 2004 on the Commission's Annual Policy Strategy report (3),

— having regard to the preliminary draft general budget of the European Union for the financial year

2005, which the Commission presented on 28 April 2004 (COM(2004)0350),

— having regard to the draft general budget of the European Union for the financial year 2005, which the

Council established on 19 July 2004 (C6-0123/2004),

— having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial

Regulation applicable to the general budget of the European Communities (4),

— having regard to Rule 69 of and Annex IV to its Rules of Procedure,

— having regard to the report of the Committee on Budgets and the opinions of the other committees

concerned (A6-0021/2004),

A. whereas the 2005 EU budget must respond to the priorities and concerns of European citizens, focuss-
ing in particular on employment, growth and security at home, as well as addressing unprecedented
global challenges,

B. whereas the 2005 budget must also continue to contribute to the cohesion and to the strengthening of

the external role of the Union,

C. whereas the 2005 budget should consolidate and ensure the effective implementation of a budget for a

25-state EU,

General considerations

1.
Considers that the 2005 budget will test the EU's resolve actually to provide the necessary budgetary
means to meet its stated ambitions; deplores the fact that in the draft budget the Council, in making across-
the-board reductions in all headings of the financial perspective, has shown disregard for the specific
budgetary requirements of the various headings, which has resulted in pointless cuts in certain areas;

(1) OJ L 253, 7.10.2000, p. 42.
(2) OJ C 172, 18.6.1999, p. 1. Agreement as amended by Decision 2003/429/EC of the European Parliament and of the

Council (OJ L 147, 14.6.2003, p. 25).

(3) Texts Adopted, P5_TA(2004)0369.
(4) OJ L 248, 16.9.2002, p. 1.

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2.
Considers that a strategy of safeguarding programmes with a real added value for EU citizens will be
of the highest importance, and that a major effort will have to be made to overcome the serious constraints
put on the Union's budget, especially those resulting from the need to undertake new commitments; empha-
sises its willingness to develop jointly with Council a sustainable solution within the framework of the
Interinstitutional Agreement of 6 May 1999;

3.
Has decided to increase payments across the budget in order to ensure that stated EU priorities are
properly funded and efficiently implemented, and to make a special effort for lines with a high proportion
of outstanding commitments (RAL); emphasises that the approved increases nevertheless limit total pay-
ments to a level respecting budgetary rigour and taking into account the economic and budgetary con-
straints facing certain Member States;

Reiterates that the quality and impact of EU funding must be further enhanced and considers it essen-
4.
tial to continue the progress already made towards performance-oriented budgeting; calls on the Commis-
sion to take on board in full Parliament's recommendations as regards the formulation of objectives, per-
formance criteria and follow-up measures, including a qualitative appraisal of the measurable and scientific
outcomes of the beneficiaries of applicable budget lines in the different policy areas; insists that the internal
audit unit should consequently follow up on these appraisals;

5.

Confirms that the 2005 budget shall reflect the following political priorities and objectives:

— Lisbon Strategy: given the desire for the EU budget to become an effective means of fostering economic

growth, sustainable development and job creation;

— JHA: need for a European response to new challenges in connection with cooperation in immigration,

asylum and migration, and terrorism and security matters;

— Information policy: need to increase budgetary outlay in response to the low turnout at the last Euro-
pean elections, the forthcoming enlargements of the EU and the debate on a constitution for Europe;

— Cohesion policy: the 2005 budget must also continue to contribute to the cohesion as well as to the

strengthening of the external role of the Union;

6.
Notes the fact that the foreseen expenditure package, initiated by the Council, to encourage the econ-
omic development of the Turkish Cypriot community is not explicitly covered by any existing heading of
the financial perspective and that a political agreement on where such appropriations should be found is
necessary, including the possibility of revising the financial perspective;

Heading 1

7.
Recalls its priorities in the agricultural sector, such as the fight against animal diseases and EU policy
for quality food products, and underlines the importance that the European Parliament attaches to rural
development as the key to achieving sustainable agriculture; stresses the need to encourage young farmers,
in particular, and to adapt the funds available to the number of young farmers in need of assistance in the
enlarged Union; points out once again that for these priorities agricultural modulation could be used given
that a margin exists under sub-heading 1a;

Objects to the fact that in its draft budget the Council has adopted an initial common position which
8.
calls for an EUR 1 billion reduction in the funding proposed by the Commission under the agriculture
section of its preliminary draft budget for the coming year without any justification relating to the manage-
ment of agricultural policies and measures;

9.

Supports increases in resources which promote:

— continuous training and information of farmers and European citizens concerning the new policies

under the CAP,

— research,

— the quality of agricultural production,

— the competitiveness of agriculture,

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10.
Regrets that some Member States have not been able to use rural development funds even when
confronted with massive desertification and destruction by fire of rural and natural habitats, as was the
case over the last two summers; calls on the Commission to analyse carefully proposals that might be able
to overcome such situations in order to ensure the efficient use of rural development funds to safeguard
sustainable development and nature conservation in rural areas in Europe;

Heading 2

11. Welcomes the improvements in the implementation of the Structural Funds; accordingly, increases
payment appropriations, which will also facilitate the reduction of outstanding commitments; invites the
Commission to present an updated estimate of the needs for 2005, in the light of Member States' forecasts
and the serious payment deficits already flagged for 2004;

Heading 3

12.
Is determined to provide sufficient funding for operational programmes under Heading 3 of the
financial perspective according to its political priorities and in particular the targets of the Lisbon Strategy;
is therefore determined to find other means to finance the increased needs of the agencies financed mostly
under this heading, given that over 50 % of these subsidies are of an administrative nature;

Decides,

13.
in line with paragraph 17 of its aforesaid resolution of 22 April 2004, to contribute to
speeding up the achievement of the objectives set by the Lisbon Strategy, by reinforcing a set of budget
lines concerning SMEs' industrial competitiveness, trans-European transport networks, development of the
internal market, the Community action programme in the field of environment and the Leonardo Da Vinci
programme;

14.
Recalls the importance of SMEs for economic growth and the creation of employment, and therefore
decides to increase the appropriations for the SME loan guarantee programme, which is especially effective
in the new Member States; also stresses the importance of ensuring participation of SMEs in the 6th frame-
work programme for research according to the set target;

15.
Considers that the EU and its Member States need to strengthen their internal security and safeguards
for the welfare of European citizens; increases the appropriations for Eurojust and the pilot project suppor-
ting the victims of terrorist acts; underlines that strengthening international security and the fight against
terrorism and organised crime must at all times be carried out in compliance with fundamental rights; urges
the Council to transform Europol into a decentralised agency of the Union, as envisaged in the draft Con-
stitutional Treaty;

Calls on the Commission — following the ‘Fourniret affair’ — to work as quickly as possible on
16.
proposals to implement mutual recognition of convictions and on the interconnection of national criminal
registers for crimes such as paedophilia, sexual attacks and crimes committed by repeat offenders; provides
funding for a feasibility study to this end;

17.
Notes that the implementation and the evaluation of EU information policy falls short of expectations
in some cases, despite the fact that it remains one of the most important tools for enhancing democratic
participation and information on the Union's activities; calls on the Commission to carry out a thorough
evaluation of the impact of recent information campaigns with a view to learning the necessary lessons for
the future;

Considers it unacceptable to allocate only EUR 1,5 million to the information campaign ‘Debate on
18.
the future of the European Union’ in view of the coming referenda on the European Constitution and the
campaign on ‘Freedom, Justice and Security’; has therefore substantially increased this amount, in order to
promote a broad public debate; is willing to improve information tools in the Member States, in particular
through the ‘info points’ and ‘carrefours’, as well as through partnerships and conventions; decides, there-
fore, to enter part of the appropriation in the reserve; will release the appropriations only if the conditions
set out in its budget amendment are duly fulfilled; insists that the Commission launch the new actions
under the new information strategy as of 2005;

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Believes that although the Fisheries Control Agency is scheduled to start work in 2006, some funds

19.
should be provided in 2005 for initial preparations;

20.
Requests greater observance of the fundamental right to data protection; recalls its resolution of
31 March 2004 on PNR data (1) and urges the Commission to work on a solution for the setting-up of a
‘push’ system for the transfer of such data; places certain appropriations in reserve until this is accom-
plished;

Heading 4

21.
Deplores the fact that the Council has failed to recognise the seriousness of the unprecedented chal-
lenges the EU faces in external policy, by introducing unacceptable across-the-board cuts which further
weaken the already inadequate proposals made by the Commission in the PDB; decides to enter appropri-
ations at a level which will secure new international undertakings and safeguard traditional priorities such as
human rights and democracy programmes, humanitarian and food aid, geographical cooperation pro-
grammes and the global fight against poverty and HIV/AIDS;

Draws attention to the joint declaration adopted at the conciliation of 16 July 2004 requesting a
22.
global assessment of needs envisaged in Iraq for 2005-2006 and,
if appropriate, the presentation of a
revised financial programming for 2006; is prepared jointly with the Council to make use of the special
provisions provided for in the Interinstitutional Agreement of 6 May 1999;

23.
Points out that the fight against drugs and drug addiction, and hence the Community's policy in this
area, continue to be of prime importance; notes that, in the context of the external action aspect of oper-
ations coming under this policy, there is an urgent need to tackle the situation in Afghanistan which is once
again the largest producer of opium poppies in the world and the country where 90 % of the heroin on
Europe's streets originates; against this background, stresses that North-South cooperation schemes in the
campaign against drugs and drug addiction are vital and asks the Commission and the Council to streng-
then considerably the EU's commitments to the scheme;

Recalls that the Commission was asked to outline the follow-up it intended to give to the European
24.
Parliament's initiative to set up a Bi-Regional Solidarity Fund, within the framework of reinforcing coop-
eration with Latin America,
in accordance with the European Parliament's resolutions of 15 November
2001 (2) and of 18 December 2003 (3) and with Parliament's position of 6 November 2003 (4) on the pro-
posal for a European Parliament and Council regulation concerning Community cooperation with Asian and
Latin American countries and amending Council Regulation (EC) No 2258/96, where Parliament expressed
its approval under the codecision procedure;

25.
Recalls the EU commitment made in Barcelona in 2002 to increase development assistance and urges
the Commission to strengthen significantly coordination of Member States' development cooperation with
the actions implemented by the Commission, based on the comparative advantages of each donor, in order
to maximise complementarity;

26.
Notes the increasing share of budget support in the development cooperation programmes managed
by the Commission and emphasises at the same time the importance that budget support, provided by the
EU budget and the EDF, should contribute to poverty alleviation and the achievement of the Millennium
Development Goals; insists that the use of budget support shall depend on sufficient institutional capacity
and compliance with detailed criteria for the custody and use of such funds in the recipient country; invites
the Commission and the Member States to enter into a dialogue with Parliament to follow up the effects of
budget support in specific recipient countries;

27.
Recalls, as stated in the Conclusions of the Thessaloniki European Council, that women have an
active role to play in peace-building and peace-keeping; believes that European aid to the countries and
areas which have been devastated by armed conflicts and war, such as the western Balkans, Afghanistan,
Mediterranean and Middle Eastern countries, and especially Iraq, should be expressly committed to encour-
age this role and to promote the reintegration and participation of women in social, economic and political
life; underlines the fact that the impact of war and conflict disproportionately affects women and girls,
including extreme and widespread violence, and that measures against this must be taken into account in
the EU budget;

(1) Texts Adopted, P5_TA(2004)0245.
(2) OJ C 140 E, 13.6.2002, p. 569.
(3) Texts Adopted, P5_TA(2003)0588.
(4) Texts Adopted, P5_TA(2003)0473.

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28. Welcomes the progress achieved with the Irish and Dutch presidencies in developing the political
dialogue with the European Parliament on CFSP through regular meetings; encourages the incoming Presi-
dency to reinforce this by reaching an agreement with Parliament on the future financing of per diems and
on a clearer definition of the border line between EU financing under the first or second pillars and financ-
ing by the national budgets for the new operations and other activities; invites the incoming Presidency to
be represented in this dialogue, at least at ambassadorial level;

29.
Emphasises the importance of clearer information on ongoing and foreseeable actions under CFSP
(early-warning system), and qualitatively improved reports which should not be merely a list of previous
actions but a genuine basis for policy dialogue with Parliament, containing proposed priorities and their
financial implications;

30.
Recalls that Council should justify its proposed increases for CFSP not only from the point of view of
the specific actions but also taking into account the available margin under heading 4 and the possible
impact on other actions;

31.
Believes that, with regard to fisheries agreements, the Council reduction of commitment appropri-
ations by EUR 6 million and payment appropriations by EUR 3 million is entirely unjustified, and decides
that these amounts should be reinstated;

Heading 5

Reiterates its willingness to provide sufficient means for this expenditure,

32.
in order to enable the
institutions of the enlarged Union to function properly, but is not in favour of using the flexibility instru-
ment of the financial perspective for this purpose; in addition considers it desirable to create for 2005 an
adequate margin under the ceiling of heading 5 of the financial perspective but cannot, at present, achieve
this without additional efforts from the institutions themselves; decides, therefore, to increase the draft
budget by some EUR 48,7 million in first reading, leaving a limited margin;

33.
Calls on all the institutions, including Parliament and the Council, to examine all possibilities for
further savings before the second reading, including a critical review of budget requests and the possibility
of reprogramming and internal or interinstitutional frontloading;

Horizontal issues

Agencies

34.
Decides to adjust the agencies' establishment plans in line with the principles followed by the insti-
tutions; requests the Commission to set up a specific career profile for the agencies and provide information
on the redeployment of human resources freed at headquarters following the devolution of tasks to the
agencies;

35.
Decides, furthermore, in recognition of their role, to maintain appropriations at the PDB-level, but
will only be able to provide for the necessary funds outside of the current headings of the financial per-
spective under which they have been financed; resolves to follow up the work of Parliament's Temporary
Committee on Maritime Safety by ensuring the necessary funding for the European Maritime Safety Agency
to implement anti-pollution measures;

Subsidies

36.
Points out that the former A-30 lines are now covered by basic legal acts and restricted with fixed
financial frameworks for the period 2004-2006; expects the Commission to submit to Parliament new
proposals for legal bases for the new generation of programmes for grants post-2006 by 31 March 2005
at the latest, in order to allow their inclusion in the discussion on a new financial perspective;

37.
Is disappointed by the slow implementation of certain pilot projects by the Commission over the past
years; has decided, with a view to ensuring faster and improved implementation by the Commission, to
reduce the number of pilot projects and preparatory actions and to concentrate on major projects/actions
that are in line with Parliament's priorities;

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38.
Notes that preparatory measures in a number of areas to which it attaches importance (support for
regional and minority languages, sport, cultural cooperation) are now coming to an end; further notes that,
in some of these areas, the draft Constitution of the European Union will provide a Treaty basis for future
Community action; requests the Commission to explain what action it plans in these areas before the
Constitution enters into force;

39.
Instructs its President to forward this resolution, together with the amendments and proposed
modifications to Section III of the draft general budget, to the Council, the Commission and the other
institutions and bodies concerned.

P6_TA(2004)0039

2005 draft general budget: Sections I, II, IV, V, VI, VII, VIII

European Parliament resolution on the draft general budget of the European Union for the financial
year 2005: Section I — European Parliament, Section II — Council, Section IV — Court of Justice,
Section V — Court of Auditors, Section VI — European Economic and Social Committee, Section
VII — Committee of the Regions, Section VIII(A) — European Ombudsman, Section VIII(B) —
European Data Protection Supervisor (C6-0123/2004 — 2004/2002(BUD))

The European Parliament,

— having regard to Article 272 of the EC Treaty,

— having regard to Council Decision 2000/597/EC, Euratom of 29 September 2000 on the system of the

European Communities' own resources (1),

— 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 procedure (2),

— having regard to its resolution of 26 February 2004 on the guidelines for Sections II, IV, V, VI, VII,
VIII(A) and VIII(B) and on the European Parliament's preliminary draft estimates (Section I) for the
2005 budget procedure (3),

— having regard to its resolution of 22 April 2004 on the estimates of revenue and expenditure of Par-

liament for the financial year 2005 (2004/2007(BUD)) (4),

— having regard to the preliminary draft general budget of the European Union for the financial year

2005, which the Commission presented on 28 April 2004 (COM(2004)0350),

— having regard to the draft general budget of the European Union for the financial year 2005, which the

Council established on 19 July 2004 (C6-0123/2004),

— having regard to Rule 69 of and Annex IV to its Rules of Procedure,

— having regard to the report of the Committee on Budgets and the opinions of the Committee on

International Trade and the Committee on Constitutional Affairs (A6-0020/2004),

A. whereas the current financial perspective has set the ceiling for heading 5 (Administrative expenditure)

for the financial year 2005 at EUR 6 360 million at 2005 prices,

B. whereas the preliminary draft budget (PDB) for 2005 as presented by the Commission left no margin

below the ceiling of heading 5 of the financial perspective,

C. whereas the Council's draft budget left a margin of around EUR 51,9 million below the ceiling of

heading 5 of the financial perspective for the 2005 financial year,

(1) OJ L 253, 7.10.2000, p. 42.
(2) OJ C 172, 18.6.1999, p. 1. Agreement as amended by Decision 2003/429/EC of the European Parliament and of the

Council (OJ L 147, 14.6.2003, p. 25).

(3) Texts Adopted, P5_TA(2004)0118.
(4) Texts Adopted, P5_TA(2004)0370.