European Parliament resolution on the 2007 budget: the Commission's Annual Policy Strategy report (APS) (2006/2020(BUD))
Date: 2006-05-18
Institutions: Committee on Budgets, European Parliament
Subjects: Community budget, EU policy, budget policy, budgetary discipline (EU), drawing up of the EU budget, governance

7.12.2006

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P6_TA(2006)0221

Commission's Annual Policy Strategy for 2007

European Parliament resolution on the 2007 budget: the Commission's Annual Policy Strategy
report (APS) (2006/2020(BUD))

The European Parliament,

— having regard to the communication from the Commission to the European Parliament, the Council, the
European Economic and Social Committee and the Committee of the Regions — Annual Policy Strategy
for 2007: Boosting trust through action (COM(2006)0122),

— 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 (1),

— having regard to the revised proposal for renewal of the Interinstitutional Agreement on budgetary disci-

pline and improvement of the budgetary procedure (COM(2006)0036),

— having regard to its resolution of 8 June 2005 on Policy Challenges and Budgetary Means of the

Enlarged Union 2007-2013 (2),

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

— having regard to Rule 112(1) of its Rules of Procedure,

— having regard to the report of the Committee on Budgets and the opinions of the Committee on Foreign
Affairs, the Committee on Development and the Committee on International Trade (A6-0154/2006),

A. whereas the institutions have achieved a compromise on a new Interinstitutional Agreement (IIA) and a
new Multi-annual Financial Framework (MFF) just before the start of the 2007 budgetary procedure,

B. whereas, in the absence of a new IIA, the provisions of the Treaty, and in particular Article 272 thereof,

provide for an annual budgetary procedure,

C. whereas most EU legislation will be renewed in 2007, allowing the 2007 budget to launch the new prio-

rities for the coming financial period,

D. whereas enlargement to Bulgaria and Romania should be effective in 2007,

E. whereas the choice of priorities for the 2007 budget, the first of the coming MFF, will not only deter-

mine European policies next year but undoubtedly have a strategic effect as regards future years,

F. whereas today's challenges have to be met by forward-looking policies which require adequate financial
resources; whereas the review of all aspects of EU spending and resources planned for 2008-2009 will
provide an excellent opportunity to adapt EU policies to cope with the process of globalisation and to
reassess the priorities, while maintaining solidarity and cohesion within the European Union,

G. whereas, in the meantime, the annual budget for 2007 should enable the European Union to take a
further step towards becoming an effective global player; whereas it should provide enough resources to
contribute to the Union's internal and external challenges, be geared towards achieving sustainable devel-
opment, promoting democracy and human rights and helping to make entrepreneurs and businesses
better able to succeed in global competition, notably through increased efforts in the field of research
and development, education and innovation in order to guarantee prosperity and a better quality of life
for our citizens,

(1) OJ C 172, 18.6.1999, p. 1. Agreement as last amended by Decision 2005/708/EC of the European Parliament and of

the Council (OJ L 269, 14.10.2005, p. 24).

(2) Texts Adopted, P6_TA(2005)0224.

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Context

1.
Expresses concern about the visible discrepancy between the challenges which the European Union is
facing and the appropriations that might be available under the relevant headings of an unambitious MFF
2007-2013 to respond effectively to these challenges, in particular for competitiveness, research and innova-
tion, which the Council and Commission have themselves labelled as priorities;

2. Recalls the decisions of the European Council in October 2005 which set out the challenges which the
European Union should take account of in a globalising world; believes that the Annual Policy Strategy does
not reflect the urgency with which such challenges should be addressed or provide the necessary vision for
encouraging economic reform to meet them;

3. Given that the year 2007 will be the first budget of a new MFF, considers that this budget should be
strategic in nature, looking at those areas of external and internal policies where funding can make a signifi-
cant difference and which provide real value for money;

4. Notes the Commission's strategic objectives as set out in its APS document ‘Boosting trust through
action’; although sharing its analysis, strongly criticises the Commission for its complacency and laid back
attitude in setting out the nature of the challenges facing the European Union; believes, for example, that
insufficient attention has been given by the Commission to the vast and very rapid changes underway in the
global economy, notably in emerging economies such as China and India;

5.
Intends to make the best possible use of resources a fundamental issue for the 2007 budget, taking into
account the coherence between various actions, their effectiveness and their added value for citizens; believes
that the three main strands of the 2007 budget should be setting policy priorities; ensuring qualitative value
for money; and beginning preparations for the review in 2008/2009, this because the 2007 budget and its
implementation will enable the effectiveness of the new MFF to be assessed;

6. Considers with regard to setting policy priorities that under reduced ceilings compared to initial expec-
tation, the 2007 budget should concentrate on a limited number of priorities, in particular:

— External Relations — the EU's role in a globalised world

— Partnership/Cooperation agreements;

— European Neighbourhood Policy and Pre-accession instruments;

— Development Policy, Democratisation and Human Rights, Millennium Development Goals;

— Common Foreign and Security Policy (CFSP);

— The Security, Freedom and Solidarity dimension (both external and internal)

— External, e.g. energy security, prevention, preparation for and management of the consequences of

terrorist threats;

— Internal, e.g.

immigration policies aimed at integration of third-country nationals, solidarity in

border management, security and protection of freedoms;

— Cohesion

— Internal Policies

— Lisbon Objectives (Growth, Employment, Expertise, Transport, Research and Innovation);

— Environment and Rural Development;

— Citizens (including Culture and Youth) and communication;

— Adequacy of objectives and resources in terms of European public administration, including the agen-

cies;

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7. Considers that it is its responsibility as budgetary and discharge authority to ensure that the funding
allocated to the EU budget is spent with a view to ensuring qualitative value for money, in particular to opti-
mise the resources made available under limited ceilings; therefore intends to address the 2007 budget with
a cost-benefit approach by developing a qualitative scrutiny of the budget through annual assessment, in
close co-operation with the sectoral committees;

8. Recalls the importance of a mid-term review of the next MFF with the aim of adjusting the financial
framework to enable the EU to meet the challenges of a rapidly changing world more effectively; believes
that the 2007 budget as the first under the MFF 2007-2013 offers an important opportunity to set a direc-
tion for implementation of the new programmes and thereby lay the grounds for the comprehensive review
of the MFF planned for 2008;

9. Recalls that the MFF should not be considered as a multi-annual budget; therefore asks the Commission
to present a Preliminary draft budget (PDB) which leaves a sufficient margin for manoeuvre for the 2007
annual procedure in respect of the co-decided programmes;

Setting Policy Priorities

A. External Relations — Europe as a world partner

10. Underlines that the foundation of the EU is based on a number of core values such as peace, freedom
and democracy and the need to promote international relations in order to foster these goals; takes the view
that the essence of these values is sometimes obscured by the multitude and diverse character of the different
types of international agreements and instruments and believes that the EU, in political terms as well as in
terms of budgetary guidance, should now develop a coherent and over-arching strategy to better define its
strategic priorities; this should include devoting special attention to how new programmes function and
how they are relevant to the strategic objectives; looks forward to a report from the Commission on effec-
tive external action, within the existing rules of the Treaty;

11.
Firmly believes that partnerships that share fundamental core values must be recognised and promoted
as such; underlines the crucial importance it attaches to the re-launching of a deepened and more strategic
partnership with the United States on many global issues, on the basis of shared objectives between the two
continents;

12. Welcomes the inclusion of enhanced policy coherence and reinforced aid effectiveness among the
Commission's priorities in the field of external action;

13. Highlights its concern about the further development of avian influenza in and outside the European
Union; stresses the need to cooperate closely with the FAO, the WHO, the OIE (World Organisation for
Animal Health) and with the countries in the affected regions;

14. Reiterates its support for the European Neighbourhood Policy which it considers crucial, especially in
terms of promoting democracy and positive change through a set of policies which establish clear benefits,
also in economic and trading terms, for reforms undertaken and progress made; is convinced that actions in
this area, leading over time also to economic development, will have important benefits for the partner
countries and the EU alike;

Believes that it is important to ensure sufficient funding for development policy and poverty allevia-
15.
tion measures, including the Millennium Development Goals; strongly emphasises that sustainable solutions
are also dependent on sufficient internal progress in the countries concerned, including respect for the rule
of law, democracy and human rights; underlines the crucial importance of paying special attention to the
coherence and complementarity of national and Community programmes in order to maximise overall
impact and effectiveness; requests a detailed examination of programmes on democratisation and human
rights as well as the functioning of some NGOs;

16. Reminds the Commission and the Council of their commitment to provide the Sugar Protocol coun-
tries with adequate and appropriate funding for accompanying measures to help address the transitional
challenges they face as a result of the EU internal reform of the sugar regime and the relevant WTO ruling;

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17.
Stresses that developments in the Middle East and particularly Palestine should be carefully assessed
during the budget procedure and draws particular attention to the likelihood of chaos that would follow a
collapse of the Palestinian Authority and the need for sound financial and fiscal management concerning EU
aid, whether disbursed directly or through the trust funds established; wishes to make absolutely clear that
the budgetary authority must be consulted in advance before any substantial financial commitments can be
entered into;

Is determined to develop the established political dialogue on the CFSP in a constructive manner and
18.
urges the Council to use this context to practise a more open, transparent and accountable CFSP; in particu-
lar insists on being fully involved and consulted annually ‘ex-ante’ on forthcoming actions and choices;
reiterates its preparedness to review the CFSP nomenclature in order to adjust it to the political needs and
the Union's role; asks the Court of Auditors to provide a special report on the cost-effectiveness of CFSP
joint actions;

B. The Security Dimension — Security, freedom and citizenship

19. Underlines that European citizens need freedom, justice and security in their everyday lives; stresses
that the EU budget for 2007 should contribute to safeguarding these privileges for the European Union
both externally and internally, including at economic and social level;

20. Welcomes the fact that, in the context of external security, the Commission has included energy policy
as one of the main priorities for 2007; recognises the fundamental importance of sustainability, competitive-
ness, and securing energy supply as well as energy efficiency of the European economy and stresses the
importance of diversifying gas and oil supply and of exploring all possible means of enhancing the European
Union's self-sufficiency in energy; stresses the high levels of energy import dependence in the EU; calls for a
coherent European energy strategy that includes dialogue with major supply partner countries; calls on
Member States to implement fully existing Community legislation on the liberalisation of energy markets,
the improvement of energy efficiency, the promotion of renewable energy sources and research on the
production and use of bio-fuels and alternative sources of energy;

Emphasises the importance of environmental

21.
meeting the Kyoto target of an 8 % reduction in greenhouse gases by 2008-2012 in this context;

issues relating to energy; stresses the importance of

22. Welcomes the start of the new freedom, security and justice programmes for 2007-2013 in the area
of justice and home affairs; emphasises that, in the face of modern, globalised crime, concerted EU action is
a necessary component of policies to ensure a safe society founded on the rule of law;

23.
Stresses that the objective of the integration of migrants and border management is of importance in
the years to come; intends to provide sufficient means in 2007 to ensure that the extension of the Schengen
area is flanked by the principle of Community solidarity in the management of the Union's external borders;

24. Recalls that bringing the EU closer to citizens is the main aim of the communication policy; considers
that forms of information and dialogue for those who at the moment feel excluded from the European
debate should be introduced, and that the dialogue and understanding between European citizens should be
promoted through successful EU programmes, such as Erasmus and Leonardo (Life-Long Learning), and
through language training;

25. Recalls that strengthening economic and social cohesion is one of the fundamental objectives of the
EU as laid down by the Treaty establishing the European Community; points out that 2007 will be the first
year the new Member States will receive full support from the Structural Funds and the Cohesion Fund;
considers, therefore, that enhancing cohesion should remain a priority for 2007 and that sufficient financial
resources should be allocated to Cohesion Policy during the 2007 budgetary procedure;

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C. Internal Policies — Prosperity and solidarity

Thursday, 18 May 2006

26. Considers that the objectives of the Lisbon Agenda will contribute to promoting sustainable growth
and the creation of jobs in the EU; calls therefore on the Member States to implement properly the existing
and proposed Community legislation aimed at completing the Single Market and fulfilling the Community
Lisbon Programme; highlights the need for adequate public financing to create the leverage effect expected
of actions co-financed by the European Investment Bank; looks forward to the Commission and Council
bringing forward proposals on this matter;

27. Underlines the importance of SMEs which contribute considerably to innovation, growth and pros-
perity in the EU; underlines the importance of continued simplification of the regulatory regime in particular
for SMEs;

28. Urges the Member States and the Commission to pay special attention to those areas that form the
basis of a healthy modern economy, such as knowledge, skills, research and development, innovation, infor-
mation society technologies, transport and energy; recalls the importance of strengthening the capacities of
the knowledge-triangle (education, research and innovation) and reinforcing the links among them; calls for
all policies in Member States and at EU level to be geared to supporting research and innovation wherever
possible; strongly supports the measures for the development and completion of the European information
society as it promotes inclusion, better public services and quality of life;

29. Considers that, in the context of the new generation of programmes, financial instruments need to be
rethought in a more fine-tuned way and endowed with adequate financial resources, which is vital for
supporting an industrial policy geared towards EU-wide prosperity and competitiveness, including SMEs,
which would successfully capitalise on research output through industrial applications (i.e. technology
transfer from universities and research centres into industrial application);

30.
Stresses that, in the face of increasing global competition, the capability of employers and employees
alike as well as of companies as a whole to adjust sufficiently to current changes will be decisive; believes
that in this context the development of policies of and for the future is of vital importance and that the
European Globalisation adjustment Fund, as currently under discussion, might be a first step in the right
direction; believes that the setting up of a new European Institute of Technology may undermine or overlap
on existing structures and may therefore not be the most effective use of funds in this context; believes that
the employment potential of innovative enterprises could help the EU to overcome certain difficulties posed
by global competition; calls for elimination of the barriers to the mobility of researchers and for the creation
of an open and competitive labour market for researchers;

31. Recalls that communication is a key factor in helping European citizens understand the EU better;
points out that scarce resources should be used to develop an efficient and coherent communication policy
across the EU institutions; is convinced that the potential for synergies between the communication activities
of the Commission and Parliament has still not been fully developed;

D. Cohesion

Emphasises the importance of budgeting for real requirements in the field of payments under the
32.
Structural Funds; stresses the need for provision to be made for a level of payments sufficient to avoid
jeopardising the realisation of programmes; considers that payments should correspond to the most reliable
estimates, in accordance with the principles of sound financial management and good budgetary practice;

Qualitative value for money

33. Underlines that the December 2005 agreement of the European Council has clearly shown that the
battle for resources has begun; highlights that Council figures would mean a decrease of resources available
between 2007 — 2013 by over 15 % as compared to what the Commission thought necessary in its original
proposal; therefore believes it to be absolutely necessary in this situation to start looking at the quality of
European Union expenditure;

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34.
Shares the Council's assessment of the importance of good collaboration between the two arms of the
budgetary authority and the Commission; agrees with the Council in particular that all appropriations need
to be reviewed in detail for each policy sector and in this context reaffirms the importance of reallocation in
order to allow the budgetary authority to make the necessary financial adaptations to meet present and
future needs; supports the necessity of having high-quality activity statements and financial information on
spending proposals in good time;

35.
Believes that the beginning of the new MFF offers a significant opportunity for reassessment; considers
that if a programme is known not to be successful or is no longer a priority, it should be deleted; believes it
important to keep an open mind with regard to introducing new programmes if they are needed for the EU
to keep up with the pace of globalisation; stresses that the EU institutions must root out fraud and unneces-
sary bureaucracy wherever it is found;

Proposes to ask for cost-benefit studies to be carried out on specific areas of the budget by using part
36.
of the resources allocated to the parliamentary committees in order to assess the regularity (compliance with
the Financial Regulation, financial reporting system) and the performance (efficiency of resources, effective-
ness of the projects, administrative cost) of the policies as implemented, and to draw the political conclu-
sions of such evaluations;

37.
Stresses that the Commission should take immediate action to simplify and improve the effectiveness
of administrative management, including in particular the revised proposal for the Financial Regulation, with
regard to the implementation of Community programmes for its own services, Member States and final
beneficiaries, especially as regards small-scale projects; considers that a thorough analysis of the effectiveness
of the administrative management of Community legislation should be made on each of these four levels;

Preparing for the 2008/2009 Review

38.
Shares the Council's view that the MFF setting mid-term political priorities needs to be adjusted to a
fast-developing world in order to allow the EU to maintain its political and economic position both at
internal level, so as to meet the Lisbon objectives, and at external level, so as to meet the Millennium Goals
and promote democracy and human rights, to achieve a successful Neighbourhood Policy and to take leader-
ship in the globalisation process; furthermore stresses that at internal and external level, the Common Agri-
cultural Policy should be adjusted to the future needs, and draws attention in this context to compulsory co-
financing, increased market orientation, a level playing field and the abolition of export subsidies as favour-
able options;

39. Considers that the 2007 budget, as the first budget of the next period, represents an opportunity to
launch the new programmes within the scope of adjustments to new needs which might appear in the first
part of the period;

40.
Believes that the review of all aspects of EU spending and resources planned for 2008 will offer a real
opportunity to have a close look at the ways in which public money is spent; issues a reminder that Parlia-
ment should be involved in all potential changes in this field, in view of its rights and institutional preroga-
tives; underlines that only a comprehensive reassessment of revenue, notably the introduction of a system of
real Own Resources, and expenditure, notably the introduction of co-financing of direct payments in agri-
culture and a shift in policy towards rural development, will enable the European Union ‘to shake up the
system’ in order to meet the challenges of our fast-changing world; looks forward to the report on reform
of the system of Own Resources to make it more transparent, progressive and fair;

European governance: Human and financial resources for 2007

41. Underlines that the 2007 budget procedure can offer a real opportunity for fine tuning as well as
leverage for setting priorities; considers that the annual budget procedure could be used as a means for
Parliament to secure its priorities in ongoing legislative procedures and in particular in the conclusion of the
multi-annual programmes in the context of a new MFF;

42.
Stresses that following the outcome of the negotiations on the next MFF, the Committee on Budgets
should ensure that the new provisions and qualitative reforms contained in the IIA are implemented in the
2007 budget;

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43. Reiterates that the proliferation of agencies, as seen over the past ten years, will undoubtedly have
negative consequences for the funding of
the operational programmes; considers a value-for-money
approach towards the decentralised agencies as opposed to centralised activities an absolute necessity;

44. Notes that the Commission plans to request 890 additional staff, of which 250 new posts are related
to the next enlargement to Bulgaria and Romania, to deal with the extension of its tasks following enlarge-
ment; insists on the fact that this request should be well justified in the PDB, in particular for the posts allo-
cated to new programmes;

45. Notes the Council request for administrative savings; is ready to cooperate with the Council on means
to ensure the value for money of Community programmes, as highlighted in its Guidelines for the budget
2007;

46. Welcomes the efforts made by the Commission in terms of redeployment between and within depart-
ments in order to optimise resources; invites the Commission to assess carefully if further possibilities for
redeployment can be found before presenting the PDB in order to reduce the number of new recruitments;
calls on the Commission to ensure that EPSO will be in a position to enable the recruitment of staff foreseen
for enlargement for the year 2007;

47. Notes that
take place between the institutions on shaping the legislative
programme for 2007; insists that agreement on this programme should be reached in December 2006 by
the EU institutions to coincide with the completion of the 2007 budget procedure;

full consultation will

48. Notes the opinions produced by the Committee on Foreign Affairs, the Committee on Development
and the Committee on International Trade; welcomes the contributions that these opinions make as regards
the external aspects of the 2007 budget procedure; notes that the main themes of these opinions will be
incorporated during the course of the budget procedure;

*

*

*

Instructs its President to forward this resolution to the Council, the Commission and the Court of

49.
Auditors.

P6_TA(2006)0222

Natural disasters — agricultural aspects

European Parliament resolution on natural disasters (forest fires, droughts and floods) — agri-
cultural aspects (2005/2195(INI))

The European Parliament,

— having regard to its resolutions of 5 September 2002 on floods in Europe (1), of 13 January 2005 on
the outcome of the Buenos Aires Conference on climate change (2), of 14 April 2005 on the drought in
Portugal (3), of 12 May 2005 on the drought in Spain (4), and of 8 September 2005 on natural disasters
(fires and floods) in Europe that summer (5),

(1) OJ C 272 E, 13.11.2003, p. 471.
(2) OJ C 247 E, 6.10.2005, p. 144.
(3) OJ C 33 E, 9.2.2006, p. 599.
(4) OJ C 92 E, 20.4.2006, p. 414.
(5) Texts Adopted, P6_TA(2005)0334.