Communication from the Commission to the European Parliament and the Council - Annual Policy Strategy for 2006
Date: 2005-03-02
Institutions: European Commission
Subjects: Community budget, European security, economic and social cohesion, enlargement of the Union, interinstitutional relations (EU), sustainable development

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 2.3.2005 
COM(2005) 73 final 

COMMUNICATION FROM THE COMMISSION 
TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 

Annual Policy Strategy for 2006 

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CONTENTS 

1. 

2. 

2.1. 

2.2. 

2.3. 

2.4. 

3. 

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

The Union’s situation and the policy priorities for 2006 ............................................. 3 

Prosperity ..................................................................................................................... 4 

Solidarity ...................................................................................................................... 6 

Security ........................................................................................................................ 8 

External projection ....................................................................................................... 9 

General framework for human and financial resources for 2006 .............................. 12 

3.1. 

Human resources........................................................................................................ 12 

3.1.1.  Enlargement-related reinforcement............................................................................ 12 

3.1.2.  Contribution to a central pool .................................................................................... 12 

3.1.3.  Total human resources available for the four priorities ............................................. 12 

3.1.4.  Specific situation for some Services .......................................................................... 13 

3.2. 

Financial resources..................................................................................................... 14 

3.2.1.  Financial implications of priority "Prosperity" .......................................................... 15 

3.2.2.  Financial implications of priority "Solidarity"........................................................... 15 

3.2.3.  Financial implications of priority "Security" ............................................................. 16 

3.2.4.  Financial implications of priority "External Projection" of the three internal priorities
.................................................................................................................................... 16 

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1. 

INTRODUCTION 

As the first stage of the now well established Commission’s annual policy cycle, this Annual 
Policy Strategy establishes the policy priorities for 2006, identifies the initiatives which will 
help  to  realise  them  and  adopts  the  budgetary  framework  so  that  the  priorities  receive  the 
necessary resources. 

Following adoption of the Annual Policy Strategy, setting the framework and guidelines for 
the 2006 budgetary and legislative exercises, the cycle will move on to the preparation of the 
preliminary draft budget and the interinstitutional dialogue. 

On  this  basis,  the  work  programme  will  be  drawn  up  for  adoption  by  the  Commission  in 
November  2005.  As  it  was  made  common  practice,  items  of  the  Commission’s  work 
programme will, as a general rule, be accompanied by an impact assessment. On the basis of 
the  impact  assessment,  the  Commission  will  decide  whether  the  initiatives  foreseen  below 
will result in a proposal.  

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  2006.  The  2006  annual  activity  reports  will  take  stock  of  the 
implementation of these management plans, and will be summarised in communications to the 
European Parliament, the Council and the European Court of Auditors. 

2. 

THE UNION’S SITUATION AND THE POLICY PRIORITIES FOR 2006 

At  European  level,  2006  will  be  critical  with  regards  to  the  implementation  of  the  5  years 
strategic  objectives  adopted  on  26  January,  and  their  overarching  target  of  restored  growth 
and  jobs  in  Europe.  These  strategic  objectives  have  already  shaped  the  Commission’s  work 
programme  adopted  on  the  same  date,  but  2006  will  be  the  key  year  for  their  concrete 
implementation. To name just a few: on the basis of the reviews and orientations expected 
this  year,  progress  should  be  made  in  the  delivery  of  the  Lisbon  Strategy,  the  Sustainable 
Development  Strategy  and  the  Social  Agenda  2006-2010.  In  the  field  of  Freedom,  Security 
and  Justice,  a  review  of  The  Hague  programme,  linked  to  the  entry  into  force  of  the 
Constitution,  is  already  foreseen  for  the  second  semester  of  2006.  As  for  external  relations, 
the  enlargement  process  will  enter  into  a  new  phase;  the  achievements  of  the  on-going 
neighbourhood policy should be deepened.  

2006 will also be a year of preparation and forward looking. Member States will be in a 
critical phase of the ratification process of the Constitution and the Commission will have to 
ensure that institutional and political changes flowing from the Constitution are being catered 
for  in  the  most  appropriate  way.  The  Commission  will  continue  to  support  the  ratification 
process and prepare a number of legislative initiatives to ensure immediate implementation of 
the Constitution when it enters into force on 1 November 2006. The year will also be critical 
to  prepare  for  the  2007-2013  financial  perspective  period  and  to  ensure  adequate 
programming if it is intended for the new generation of financial instruments (whether in the 
field of structural funds; rural  development, research and development, competitiveness and 
innovation,  justice,  freedom  and  security  or  external  relations)  to  be  fully  operational  on  1 
January 2007. 

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At  international  level,  issues  related  to  peace,  poverty  reduction,  security  and  stability  will 
again be high on the agenda. Hopefully, 2006 will also be a year of concrete progress on the 
international  scene,  whether  this  concerns  the  progress  in  resolving  the  Israeli  Palestinian 
conflict  though  renewed  dialogue  between  both  parties;  the  implementation  of  the  Doha 
Development Agenda following the Ministerial Conference in Hong Kong in December; the 
implementation of the EU action plan to strengthen its crisis management capacity; the major 
processes of reconstruction foreseen (Iraq, South East Asia post tsunami, Afghanistan) or the 
implementation  of  concrete  measures  to  eradicate  poverty  following  the  review  of  the 
Millennium Development Goals in 2005. 

This is the first Annual Policy Strategy adopted by the new Commission. Drawing from the 5 
years strategic objectives, the policy cycle will fully play its role, ensuring continuity with the 
work  started  by  the  new  Commission  in  its  Work  Programme  for  2005.  The  Annual  Policy 
Strategy should outline the delivery of the 5 year strategy in 2006. 

The  Annual  Policy  Strategy  2006  will  therefore  clearly  reflect  the  priorities  underlying  the 
Partnership for European Renewal put forward in the 5 years strategic objectives: putting 
Europe  back  on  the  track  of  prosperity;  reinforce  our  commitment  towards  solidarity; 
strengthen  citizen’s  security  and  finally  project  and  promote  these  priorities  outside  our 
borders  through  a  stronger  voice  in  the  world.  In  2006,  the  Commission  will  continue  to 
concentrate  on  the  most  urgent  priority:  restoring  a  dynamic  and  sustainable  growth  in 
Europe and providing for more and better jobs to citizens. 

Beyond these policy priorities, one fundamental operational goal for this Commission in 2006 
will  remain  the  proper  functioning  of  the  enlarged  Europe,  the  continuity  of  ongoing 
activities and the full application of the policies and rules within all the Member States. This 
requires  continued  attention  to  the  effective  implementation  of  European  law  and  further 
developing  risk  management  in  all  areas  relating  to  the  implementation  of  the  Community 
budget. This also implies continuity from policy development to policy delivery, assisted by a 
modern, effective and service-minded administration. In this respect, it should be noted that 
the  Annual  Policy  Strategy  concentrates  on  new  initiatives  for  2006.  Therefore,  it  does  not 
reflect  the  totality  of  the  Commission’s  activities  foreseen  for  2006,  and  in  particular  the 
detail  of  the  core  on-going  activities  resulting  from  the  Commission’s  responsibility  to 
undertake ongoing business in line with its roles under the Treaties. 

Sustainable  development  will  remain  the  overarching  objective  of  all  EU  policies.  The 
preparation  and  implementation  of  polices  in  2006  will  be  underpinned  by  a  new 
communication  strategy  of  the  Commission.  This  will  move  away  from  top-down 
communication  to  an  audience-centred  approach  focused  on  topics  of  relevance  to  citizens. 
Communication  will  be  integrated  into  the  policy  process  through  better  programming  and 
active  involvement  of  Commissioners.  The  role  of  the  Commission  Representations  will  be 
reinforced.  Horizontal  initiatives  enhancing  public  participation  and  contributing  to  the 
creation of a European public Space will also be promoted. 

2.1. 

Prosperity 

Progress  towards  the  goals  set  by  the  Lisbon  Strategy  has  fallen  well  short  so  far.  The 
Commission has identified the main challenges in its orientations for the mid-term review of 
Lisbon:  Europe’s  growth  and  productivity  fail  to  match  the  levels  of  its  major  economic 
partners and its current pace in improving competitiveness and innovation are insufficient to 
safeguard the standard of living and social protection of European citizens in the medium to 

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long-term.  This  requires  a  renewed  commitment  to  the  Lisbon  Programme  centred  on  three 
main  objectives:  making  Europe  a  more  attractive  place  to  invest  and  work;  promoting 
knowledge  and  innovation  as  an  engine  for  growth;  creating  more  and  better  jobs.  The 
implementation of the Lisbon Strategy, between the Union and its Member States, also needs 
radical improvement to make it more effective and more easily understood. This urgent issue 
facing Europe will be dealt with in priority in 2006. 

Particular emphasis will be placed on: 

•  the implementation of the refocused Lisbon Agenda in order to boost economic growth and 

job-creation; 

•  the  functioning  of  the  Growth  and  Stability  Pact  ensuring  sound  macroeconomic  and 

budgetary policies, as well as strengthening economic statistics; 

•  the  formulation  and  implementation  of  action  plans  in  the  relevant  internal  and  external 

sectoral policies under the revised Sustainable Development Strategy; 

•  making a reality of the goal “Towards full employment” in the new Social Agenda; 
•  improving  the  functioning  of  the  internal  market,  by  removing  obstacles  to  services, 
financial  and  goods  markets,  by  improving  connectivity  of  European  networks,  by 
simplifying  and  rationalising  customs  procedures  as  well  as  tax  rules  applying  to  cross 
border transactions and by stepping up implementation and enforcement of rules including 
those relating to state-aid and anti-trust in the enlarged Union; 

•  establish conditions to boost investment in research and development, innovation, resource 
efficiency, the  uptake of environmental technologies,  the use of new  communication  and 
information technologies; 

•  promoting  mobility  in  education  and  learning,  higher  skills  levels,  effective  use  of  the 
potential  of  youth  and  a  better  use  of  an  ageing  workforce,  further  labour  mobility  and 
greater  consideration  of  the  potential  of  immigration  so  that  Europe  is  better  skilled  and 
adapted to change. 

Prosperity: key initiatives for 2006: 

The following key initiatives have been selected: 

•  Draw up a comprehensive Strategic Report on progress towards the Lisbon Goals to the 
2006  Spring  European  Council,  on  the  basis  of  the  National  Action  Programmes 
expected in late 2005, and the commitments taken at the level of Member States, social 
partners as well as the European bodies. 

•  Propose  measures  to  strengthen  the  solvency  of  insurance  companies,  improve  market 
access  of  firms  to  clearing  and  settlement  of  financial  transactions  (post-trading)  and 
recast the insurance Directives (except for life assurance). 

•  Follow-up to consultation on copyright legislation. 

•  Propose measures to develop further the internal market in postal services and improve 

their quality. 

•  Propose initiatives in the automotive sector, including legislative simplification. 

•  Launch  initiatives  on  defence  procurement  markets  and  enhance  legal  security  to 

facilitate the application of public procurement rules to public-private partnerships. 

•  Strengthen  the  internal  market  for  goods  by  further  enhancing  mutual  recognition  and 

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revising certification procedures. 

•  Review the regulatory framework for electronic communications. 

•  Promote  environmental  technologies  through  the  continued  implementation  of  the 

Environmental Technology Action Plan (ETAP). 

•  Launch  the  initiative  “i2010:  a  European  information  society  for  growth  and 

employment”. 

•  Finalise the internal market for natural gas and electricity.  

•  Launch  an  initiative  to  promote  ‘Knowledge  for  Growth’  including  fast-track 
implementation  of  the  3%  R&D  Action  plan,  stimulating  human  resources  in  research 
and reinforcing the links between Science and Society. 

•  Launch a comprehensive policy to fight tax fraud and evasion. 

•  Develop  a  European  Qualifications  Framework  (EQF)  and  a  related  European  Credit 
Accumulation  and  Transfer  System  (ECVET)  for  vocational  education  and  training  to 
facilitate transparency and transfer of professional qualifications within the EU. 

•  Launch the European Year of mobility for workers. 

•  Launch the operational and IT aspects of the e-customs initiative to offer better service to 

companies involved in international trade. 

•  Launch the industrial project ‘Sesame’ for modernisation of air traffic control as part of 

the Single Sky initiative. 

•  Launch 

the 

technological  and 

industrial  project 

‘ERTMS’  aimed 

to  ensure 

interoperability in the railway sector. 

2.2. 

Solidarity 

Improvement  in  Europe’s  growth  and  economic  dynamism  must  allow  for  a  reinforced 
commitment  toward  solidarity,  social  justice,  and  a  strengthening  of  Europe’s  cohesion  and 
common values. In 2006, the expression of solidarity will be ensured through: 

•  cohesion policies as essential instrument to pursue the goal of economic convergence, by 
promoting  growth  and  competitiveness  and  the  approval  of  strategic  guidelines  for  the 
years 2007-2013; 

•  protection  of  the  environment  and  proper  management  of  natural  resources,  ensuring 
higher but environmentally sustainable economic growth, inter alia by means of increased 
competitiveness  though  more  market  orientation  of  the  Common  Agricultural  Policy  as 
well as through rural development to be programmed in 2006, and safeguard of long term 
energy supply;  

•  protection  of  fundamental  rights  and  fight  against  discrimination,  promotion  of  gender 
equality,  cultural  diversity,  full  integration  of  young  people  in  society  and  working  life, 
and equal opportunities for all; 

•  a comprehensive approach to migration issues, on the basis of The Hague programme; 
•  combating climate changes. 

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Solidarity : key initiatives for 2006: 

The following key initiatives have been selected: 

•  Complete  the  sectoral  reforms  in  the  Common  Agricultural  Policy  with  wine  and  fruit 

and vegetables. 

•  Put forward a Green Paper on a future EU Maritime Policy, with a view to developing a 

thriving and sustainable marine economy. 

•  Set  up  an  assistance  programme  to  help  SMEs  comply  with  EU  environmental 

legislation. 

•  Ensure  that  respect  and  promotion  of  fundamental  rights  is  mainstreamed  in  all 
Commission’s proposals and activate preparatory work in view of the entry into force of 
the European Agency of Fundamental Rights by January 2007. 

•  Adopt  a 

legislative  proposal  on 

the  establishment  of  a  European  Migration 

Observatory/Agency. 

•  Prepare for the creation of a European asylum support office on the basis of the structures 

put in place in 2005. 

•  Facilitate the lives of citizens confronted with  family-related  problems  in  the  European 

area of justice in civil matters. 

•  Propose a Communication and strategy in the field of gender equality. 

•  Propose a new Community strategy as regards health and safety at work. 

•  Adopt and follow-up the Green Paper on the evolution of Labor law. 

•  Design an optional European framework for trans-border collective bargaining. 
•  Full  implementation  of  the  European  Youth  Initiative  in  its  several  strands:  endowing 
the  young  people  with  the  human  capital  and  skills  needed  in  a  knowledge  based 
economy;  reducing  youth  unemployment  and  facilitating  entering  into  the  labour 
market;  improving  facilities,  such  as  childcare,  to  support  family  life;  combat  poverty 
and promote healthy life and active citizenship. 

•  Promote  language  learning  and  linguistic  diversity  by  ensuring  the  application  of  the 
language action plan and a further development of the European Indicator of Language 
Competence. 

•  Step  up  people  to  people  and  communication  activities  encouraging  dialogue  between 
cultures and promote cultural diversity worldwide taking into account relevant UNESCO 
standard-setting instruments. 

•  Develop a new Health Strategy to bring all actions under a coherent framework, in order 

to step up protection against new threats such as communicable diseases. 

•  Launch the European Public Health Portal, single pan-European access point to data and 

information on public health and related areas. 

•  Climate  change:  launch  the  development  of  relevant  legislative  and  non  legislative 
measures; launch a comprehensive review of the Emissions Trading scheme and assess 
the second round of national allocation plans. 

•  Complete the mid-term review of the 6th Environment Action Programme. 

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2.3. 

Security 

Terrorist  action,  organised  crime  or  trafficking  networks  are  not  constrained  by  national 
borders and national legal frameworks. Crises against public health, environment, transport or 
energy supply are not bounded by national schemes either. Security has increasingly become 
a common concern, demanding a range of actions and solutions from local to European and 
even global level. Particularly in cross border threats and crises against security, the role of 
the EU becomes more and more essential. The implementation of the related chapter of The 
Hague  Programme  will  concentrate  important  efforts  while  ensuring  the  protection  of 
citizens’ civil liberties. In addition, European action will be forward looking and innovative in 
dealing with the challenges posed by other emerging threats. 

Particular emphasis will be placed in 2006 on: 

•  progress in the implementation of the EU Action plan on combating terrorism, focusing on 
increasing effectiveness of cross-border exchange of information, cutting the financing of 
terrorism and improving assistance to victims; 

•  facilitation of legal travel for third country nationals within EU borders; 
•  improved  cooperation  between  judicial,  police  and  customs  authorities,  through  reduced 

legal obstacles and strengthened coordination;  

•  mutual recognition and free circulation of judicial decisions in civil and criminal matters to 

ensure that justice is ensured across borders; 

•  early warning and immediate response, as well as long-term prevention to environmental, 
food  safety  and  health  risks  crisis,  through  reinforced  information  and  surveillance 
networks; 

•  transport safety, whether air or road transport and maritime safety; 
•  greater security of Internet related services and networks; 
•  greater  security  of  energy  supply  though  reinforced  cooperation  with  the  main  producer 

and transit countries, and promotion of renewable energies. 

Security : key initiatives for 2006 

The following key initiatives have been selected: 

•  Adopt proposals on the obstacles that police forces have to overcome to operate on the 
territory of another Member State and on the use of databases for external border control 
for law enforcement purposes. 

•  Launch  of  a  computerised  system  of  exchange  of  information  extracted  from  criminal 
records  Develop  and  start  implementation  of  an  EU  Action  Plan  on  Public  Private 
Partnership in combating organised crime and terrorism. 

•  Enhance  the  financing  of  security  research  by  improving  the  coordination  of  existing 

capabilities across the civil, security and defence continuum. 

•  Enhance  the  EU  defence  capabilities  by  overcoming  the  present  fragmentation  of  the 

submarkets and developing interoperability. 

•  Launch a new action plan to promote network and information security, including cyber 

crime, identity and privacy. 

•  Develop security inspections in ports and airports. 

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•  Put forward a Communication and a strategy on public health preparedness and response 

to influenza pandemics and terrorist health threats. 

•  Launch the Global Monitoring for Environment and Security (GMES) Initial Services. 

•  Establish an action plan for energy efficiency. 

•  Develop a Community risk management system for the security of the external borders. 

•  Develop new initiatives and further develop safe storage of nuclear waste and reinforce 

nuclear safeguard policies. 

•  Propose a new set of measures to reinforce maritime safety. 

2.4. 

External projection 

None of the previous priorities can be achieved by Europe alone: Europe cannot reach higher 
prosperity  in  a  vacuum.  Prosperity  in  third  countries  helps  build  EU  prosperity  and 
reciprocally. Europe can certainly not limit its solidarity efforts to inside its borders. It can not 
foresee security for its people without cooperation with third countries. External relations are 
indeed a way to promote and protect our priorities and values outside our borders. To do so 
efficiently,  the  Union  needs  to  rely  upon  the  confidence  of  its  citizens,  the  health  of  its 
economy and needs to speak with a single voice and promote a coherent stand. In this respect, 
2006  will  also  be  key  year  to  prepare  for  the  arrival  of  the  Minister  of  Foreign 
Affairs/Commission  Vice-President  and  the  set  up  of  the  European  External  Action  Service 
pending ratification of the Constitution. 

In  2006,  the  Commission’s  external  action  will  be  geared  to  achieving  the  following 
objectives: 

•  preparing for accession of Bulgaria and Romania and advancing on negotiations related to 

future enlargements, notably initiating the process with Turkey; 

•  ensuring  effective  implementation  of  the  European  Neighbourhood  Policy,  and  of  the 

roadmaps for the four common space with Russia; 

•  pursuing international trade negotiations at all levels: in the World Trade Organisation, and 

also with key bilateral and regional partners. 

•  ensuring  constructive  engagement  in  the  Middle  East  Peace  Process,  through  the  Quartet 

structure and in close cooperation with the parties; 

•  continuing support for regional stability as well as reconstruction and political transition in 

Iraq;  

•  continuing the reconstruction and rehabilitation in response to the Tsunami disaster; 
•  upgrading the transatlantic dialogue and establish coherent and effective relations with key 

partners, notably through closer security cooperation and regulatory convergence;  

•  intensifying  dialogue  with  the  most  important  energy  providers  in  the  light  of  Europe’s 

increasing dependence on energy imports; 

•  implementing a new development policy to promote sustainable development and poverty 
reduction,  on  the  basis  of  the  framework  proposed  in  2005  and  the  review  of  the 
Millennium Development Goals, including a specific response for Africa;  

•  reaffirming our strong commitment to human rights; 
•  while tackling stability and security issues at their root, increasing European capacities to 
deal  with  crisis  and  global  security  challenges,  through  further  implementation  of  the 

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European  Security  Strategy  and  the  Union’s  five-point  action  plan  on  rapid  response 
capacity. 

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External projection: key initiatives for 2006 

The following key initiatives have been selected: 

External projection linked to Prosperity 

•  Ensure appropriate monitoring before accession of Bulgaria and Romania. 

•  Monitor and report on negotiations with Croatia and Turkey, and possibly with the former 

Yugoslav Republic of Macedonia following the opinion on its membership request. 

•  Possibly  open  negotiations  for  a  Stabilisation  and  Association  Agreement  with  Bosnia-

Herzegovina and Serbia & Montenegro. 

•  Propose  a  communication  and  an  action  plan  on  competitiveness  and  trade  policy, 

promoting market access for EU industry. 

•  Negotiate air service agreements with third countries as a follow-up to the judgments of 

the Court of Justice of 5 November 2002 and the Council mandate of 5 June 2003. 

•  Achieve  substantial  progress  in  Economic  Partnership  Agreement  negotiations  with  6 

ACP regions to allow entry into force in 2008. 

External projection linked to Solidarity 

•  Elaborate new policy guidelines on support for Human rights and Democratisation in the 

framework of the 4 new Financial Instruments (2007-2013). 

•  Contribute  to  the  follow-up  key  initiatives  on  development  notably  on  financing, 
coherence, Africa and international public goods, as a result of this year G8 Summit and 
High Level Plenary Meeting on Millennium Development Goals. 

•  Reinforce  the  Commission’s  response  capacity  to  humanitarian  disasters  and  strengthen 
its disaster prevention and preparedness strategy, and address the EU contribution to the 
Global Health Fund for AIDS/HIV, Malaria and Tuberculosis. 

•  Achieve progress in negotiations on climate change (under the Framework Convention on 
Climate  Change)  and  on  biodiversity  (Convention  on  Biological  Diversity  and 
Convention on Trade in Endangered Species (CITES)). 

External projection linked to Security 

•  Negotiate agreements with main industrialised partners to respond to security needs while 

facilitating trade and travel. 

•  Mainstream  drug  issues  in  agreements  with  third  countries  to  promote  international 

cooperation on drug policies. 

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

•  Expand political dialogue with ACP partners to include security. 

•  Propose two new Communications on Weapons of Mass Destruction (WMD) and Small 

Arms, Light Weapons, Explosive Remnants of War (SALW, ERW). 

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3. 

GENERAL FRAMEWORK FOR HUMAN AND FINANCIAL RESOURCES FOR 2006 

3.1. 

Human resources 

3.1.1.  Enlargement-related reinforcement  

On  the  basis  of  the  Commission’s  assessment1,  the  Budgetary  Authority  has  endorsed  the 
necessary recruitment of 3 900 additional members of staff2 between 2004 and 2008 in order 
to  enable  the  Commission  to  extend  its  work  to  the  new  Member  States  and  fulfil  its 
institutional  responsibilities.  Following  the  requests  for  1 280  posts  and  700  posts  made 
respectively in 2004 and 2005, the request in 2006 is for a net increase of 700 posts. As it did 
in 2003 for the previous enlargement, the Commission also requests 100 external staff, as a 
frontloading  of  posts  related  to  the  future  accessions  of  Bulgaria  and  Romania.  This 
recruitment  constitutes,  for  2006,  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  its  four  policy 
priorities as far as they relate to an enlarged Union. 

3.1.2.  Contribution to a central pool  

Beyond  these  new  posts,  the  Commission  must  mobilise  additional  resources  to  implement 
the  priority  initiatives  independent  of  enlargement.  It  proposes  to  do  so  by  way  of 
redeployment  within  and  between  departments.  As  in  previous  years,  it  is  proposed  that  a 
central redeployment pool be set up, drawing generally upon all staff. With the set up of the 
new Commission, the departments have already contributed in large numbers to various major 
internal  redeployment  exercises,  and  the  contributions  sought  in  2006  for  a  central  pool 
serving the four priorities will accordingly be limited to 1% of operational staff. Identifying 
negative  priorities  and  other  ways  in  which  staff  may  be  re-assigned  to  tasks  linked  to 
priorities  will  remain  a  fundamental  element  in  justifying  any  request  for  new  resources. 
Savings  resulting  from  externalisation  (setting-up  of  the  EAC  and  SANCO  executive 
agencies) are also redirected towards the priorities. 

3.1.3.  Total human resources available for the four priorities 

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. 

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2 

Communication of 5 June 2002, COM(2002) 311. 
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. 

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APS priorities in 2006 

New 
resources 
related to 
enlargement 

Redeployment 
between 
departments 

Redeploymen
t within 
departments  

1. Prosperity 

2. Solidarity 

3. Security 

4. External projection 

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

183 

53 

34 

25 

505 

72 

16 

12 

52 

95 

22 

20 

49 

102 

147 

Total 
resources 
available 
for the 
priorities 

350 

91 

66 

126 

754 

TOTAL 

800 

254 

333 

1 387 

The  allocation  of  new  enlargement-related  resources  by  policy  area  will  be  finalised  during 
the  preparation  of  the  2006  preliminary  draft  budget,  including  the  breakdown  between 
establishment posts and external personnel. 

3.1.4. 

Specific situation for some Services 

the  significant  reforms  and 

Within  the  Commission,  the  external  relations  field  form  a  specific  ‘family’  of  services  for 
which individual policy decisions, organisational choices and allocation of resources require a 
the  adjustments 
specific  overall  coherence.  Following 
implemented at the time of the change over to the present Commission, notably the transfer of 
responsibility  for  the  Western  Balkans  to  Directorate-General  for  Enlargement,  the 
organisational  structure  for  the  Relex  ‘family’  is  now  in  place.  However,  the  devolution 
process, which is now very close to completion and generally viewed as being successful, has 
implied  the  transfer  to  Commission  Delegations  in  third  countries  of  a  wide  array  of 
responsibilities  concerning  management  of  EC  aid  and  assistance.  It  is  therefore  considered 
that  the  future  organisation  of  EuropeAid  Co-operation  Office  (AIDCO)  should  allow  a 
further  rationalisation,  to  free  up  resources  for  reallocation  within  the  rest  of  the  Relex 
‘family’  of  services  to  serve  other  priority  initiatives.  The  proposed  reduction  in  the 
establishment  plan  staff  of  AIDCO  will  complete  the  process  of  rebalancing  following 
deconcentration of financial management from headquarters to delegations.  

The Commission is actively reflecting on how best to deal with the resource implications of 
the  current  requirement  for  its  Internal  Auditor  to  act  also  as  the  internal  auditor  for  the 
Community agencies, given that existing resources are not entirely adequate. 

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3.2. 

Financial resources 

As a result of the APS discussions, some new initiatives are proposed, and existing ones may 
require an adaptation of resources. This is particularly important for headings 3 and 4, since 
any adjustments will affect not only the margins available under the ceilings of the financial 
perspectives, but also the financial programming. These changes are outlined below. 

Framework, for FP headings 3 and 4 resulting from the APS 2006 Decision 
(PROVISIONAL FIGURES) 

Appropriations for commitments 
3. INTERNAL POLICIES 

   FP ceiling 
   Total heading 3 

4. EXTERNAL ACTIONS 

   FP ceiling 
   Total heading 4 

   Margin 

   Margin 

(in million EUR, at current prices) 

2005 
budget 

Fin. 
Prog. 

2006 
∆ APS 

APS 2006 

9 012.0
9 052.0
-40.0 

9 385.0
9 244.9
140.1 

27.2 
-27.2 

5 119.0
5 219.0
-100.0 

5 269.0
5 048.7
220.3(c) 

342.5(a) 
-342.5 

9 385.0
9 272.1
112.9

5 269.0
5 391.2
-122.2(b) 

(a) This amount reflects all changes to the existing financial programming. The table below covers the four 
priorities. 
(b) The margin under Heading 4 could be reduced to - EUR 162.2 million, if the sugar reform is taken into account 
(EUR 40 million). 
(c) The margin in the Financial Programming from November was EUR 193.3 million. The difference (EUR 27 
million) is explained by reductions due to the transfer of East Timor to the EDF; and respect of co-decided amounts 
for poverty-related diseases, and for decentralised cooperation. 

Taking into account the additional appropriations resulting from the new initiatives proposed 
by the APS 2006, expenditure allocated within heading 3 “Internal policies” leaves a margin 
under the ceiling of EUR 112.9 million.  

As  far  as  category  4  “External  actions”  is  concerned,  there  will  be  significant  calls  on,  and 
above,  the  margin  available  for  the  2006  budget.  The  first  of  these  is  aid  for  Iraq,  which 
amounts  to  EUR  200  million  in  the  2005  budget.  Further  to  the  Communication  of  9  June 
2004,  it  is  expected  that  the  same  amount  will  be  required  in  2006,  subject  to  further 
assessment of the delivery capacity on the ground. Secondly, the reconstruction aid which has 
been promised for the regions affected by the earthquake in the Indian Ocean and the resulting 
tsunami will also have to be funded from heading 4. A total amount of EUR 350 million has 
been announced by the Commission for this purpose over a period of 2 years, half of which 
will fall on the 2006 budget. A third possible call on resources is the restructuring aid to ACP 
countries affected by the sugar reform, which is currently assessed at an amount of EUR 40 
million.  It  is  clear,  therefore,  that  only  a  part  of  this  additional  expenditure  can  be  financed 
within the ceiling of heading 4, without affecting the Union’s current policy stance and policy 
priorities.  The  Commission  will  therefore  propose  the  use  of  the  flexibility  instrument  to 
ensure that the remaining needs are covered. 

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The impact in financial terms of the selected initiatives is summarised in the following table, 
details  follow  in  the  sections  below.  The  figures  provided  for  each  of  the  policy  areas 
contributing  to  the  four  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. 

Changes in financial resources in comparison with financial programming 

Appropriations for commitments (in million EUR) FP 
headings 3 & 4 

Indicative Changes in Financial Resources 2006 

Policy Area 

Prosperity 

Solidarity  Security  External 

Employment and Social Affairs 

Health and Consumer Protection 

Area of Freedom, Security and Justice 

External Relations 

8.0 

3.0 

14.0 

0.6 

357.6 

TOTAL 

8.0 

0.6 

17.0 

357.6 

3.2.1.  Financial implications of priority "Prosperity" 

A  number  of  policies  contribute  significantly  to  "Prosperity"  in  the  programming  for  2006, 
notably Research's sixth framework programme (EUR 5 285 million), Education and Culture's 
youth and training programmes (EUR 755 million), and TENs (EUR 720 million). 

With  regard  to  changes  in  the  existing  programming,  2006  will  be  the  European  Year  of 
Mobility  for  Workers,  and  to  facilitate  this  initiative  EUR  5  million  will  be  added  to  the 
existing financial programming for the policy area employment and social affairs. A further 
EUR  2  million  will  be  added  to  the  measure  concerning  social  dialogue,  of  which  EUR  1 
million  will  contribute  to  support  for  exchanges  and  technical  assistance  between 
organisations in new and old member states, and implementation of the agreements signed by 
the social partners in accordance  with  the Commission's  communication of  12  August  2004 
on  the  social  dialogue.  The  other  EUR  1  million  will  be  used  in  a  campaign  to  increase 
awareness of the social responsibility of businesses. The lines studies and other actions in the 
area of working conditions, including health and safety at work, are both increased by EUR 
0.5 million. It is needed for evaluation tasks in the enlarged union, and in preparation of the 
next enlargement. In addition, an amount of up to EUR 1.6 million is needed to prepare for 
the expected entry into force of the REACH Agency at the beginning of 2007, and an amount 
of  EUR  2.5  million  for  the  European  Medicine  Agency  (EMA)  to  implement  the  recently 
adopted pharmaceutical legislation. 

3.2.2.  Financial implications of priority "Solidarity" 

The  structural  funds  provide  the  most  important  share  of  financing  for  the  "Solidarity" 
priority; however, there are also parts which fall under heading 3 of the financial perspectives. 
Within  the  area  of  freedom,  security  and  justice,  and  in  the  context  of  the  forthcoming 
Council decision on new narcotic and synthetic drugs, an additional EUR 0.1 million is added 
to  the  budget  of  the  EMCDDA  to  enable  them  to  carry  out  new  activities  including 
monitoring  of  misuse  of  licit  drugs  (medicines),  and  information  exchange  and  risk 

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assessment on new narcotic drugs and synthetic drugs. Also in the field of freedom, security 
and  justice,  EUR  0.5  million  will  be  added  to  the  financial  programming  to  aid  the 
development  of  the  operations  of  EURODAC  and  DubliNET.  This  will  entail  consolidation 
and evaluation to ensure the smooth operation of the extended network, and the replacement 
of  obsolete  infrastructure.  Within  the  policy  area  environment  there  is  a  shift  of  EUR  1.5 
million  from  policy  development  to  policy  implementation.  This  reflects  an  increased  focus 
on implementation, particularly in the areas of nature and biodiversity, the quality of life and 
sustainable  production,  consumption  and  use  of  resources,  and  the  importance  of 
implementation in the pre-accession phase for Bulgaria and Romania. 

3.2.3.  Financial implications of priority "Security" 

The key policy areas for this priority are Freedom, Security and Justice, Health and Consumer 
Protection,  and  Transport  and  Energy.  Under  the  area  of  freedom,  security  and  justice,  an 
amount  of  EUR  10  million  is  allocated  in  2006  for  the  development  of  the  VIS  to  include 
biometric  data.  A  crisis  centre  for  the  management  of  ARGUS  (secure  general  rapid  alert 
system) is to be set up within the Commission for use in emergency situations. The additional 
financial  needs  total  EUR  1  million,  of  which  EUR  0.6  million  is  for  the  protection  of 
installations  and  electronic  shielding,  and  EUR  0.4  million  is  for  IT.  In  the  context  of 
establishing  a  genuine  European  area  of  justice  in  criminal  and  civil  matters,  an  additional 
EUR 1 million will be provided to put in place the first stage of a computerised system for the 
exchange  of  information  on  convictions.  Eurojust  will  also  receive  an  increase  of  EUR  2 
million to complete the setting up of its infrastructure including ICT systems. In the area of 
health and consumer protection EUR 1 million is added to the financial programming for the 
European  Centre  for  Disease  Prevention  and  Control  (ECDC),  arising  from  the  decision  to 
locate the agency in Stockholm rather than Brussels or Luxembourg. Also in this policy area, 
EUR 2 million is added for a preparatory action for public health preparedness and response, 
reflecting the need to create a pre-emergency system or co-ordination mechanism which can 
mobilise resources should a major health crisis arise. 

3.2.4.  Financial  implications  of  priority  "External  Projection"  of  the  three  internal 

priorities 

In  the  area  of  external  relations,  the  2006  budget  is  certain  to  include  further  assistance  for 
Iraq, which is the same as the amount for 2005 (EUR 200 million).  

With  regard  to  the  reconstruction  aid  to  those  regions  of  Asia  affected  by  the  tsunami,  the 
Commission  has  confirmed  its  intention  to  provide  EUR  350  million  in  reconstruction  aid 
spread over 2005 and 2006. Following from the assessment reports carried out by the World 
Bank and the Asian Development Bank, it has been decided to enter EUR 150 million in fresh 
commitments for 2006. 

In the area of development, the Commission has committed itself to help the ACP countries 
who  may  find  their  exports  adversely  affected  by  the  entry  into  force  of  the  new  common 
market  organisation  for  sugar.  For  the  first  year,  the  assistance  is  currently  estimated  at  an 
amount of EUR 40 million. The option of the budget and the legal base must be decided in 
time for the assistance to be deployed in 2006. The budget part of the financing would have to 
stem from the flexibility instrument. 

Since the combination of these measures will overshoot the margin under Heading 4 (up to – 
EUR 162.2 million, if the maximum amount of EUR 40 million for the sugar reform is taken 

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into  account),  recourse  will  have  to  be  made  to  the  flexibility  instrument  for  part  of  the 
amount.  The  call  on  the  flexibility  instrument  requires  an  examination  of  possible 
redeployment during the preparation of the preliminary draft budget. In the case of the post-
tsunami aid the possibilities for reprogramming in the envelope for Asia should be explored. 
Further to the reduction in the financial envelope for TACIS by EUR 5.6 million, programmes 
facing  serious  implementing  delays  and/or  difficulties  may  be  asked  to  contribute  to  the  re-
allocation. 

Other changes related to this priority are as follows: 

–  EUR 6 million will be added to the programme to support North-South cooperation in the 
fight against drugs. The strengthening of this initiative will be financed by redeployments 
from the relevant geographical envelopes. 

–  For  CFSP,  an  additional  EUR  7.6  million  will  be  added  to  the  financial  programming 
(EUR 55 million) so that the budget for this measure does not drop below that of 2004 and 
2005.  

–  Finally,  the  Commission  announces  its  intention  to  comply  strictly  with  the  co-decided 
financial reference amounts, even if this means a decrease in 2006 compared with 2005. 

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