CELEX: 52000PC0262
Language: en
Date: 2000-05-05
Title: Proposal for a Decision of the European Parliament and the Council concerning the revision of the financial perspective (interinstitutional Agreement of 6 May 1999 on budgetary discipline and improvement of the budgetary procedure)

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                    Brussels, 3.5.2000
                                                    COM(2000) 262 final
                                                    2000/0109 (COD)
                  COMMUNICATION FROM THE COMMISSION
             TO THE COUNCIL AND THE EUROPEAN PARLIAMENT
              concerning the revision of the financial perspective (2001-06)
           Financing of the programme of assistance for the western Balkans
                      Reclassification of aid to Cyprus and Malta
                                       Proposal for a
       DECISION OF THE EUROPEAN PARLIAMENT AND THE COUNCIL
                   concerning the revision of the financial perspective
(Interinstitutional Agreement of 6 May 1999 on budgetary discipline and improvement
                               of the budgetary procedure)
                              (presented by the Commission)
 ---pagebreak---    COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE
                               EUROPEAN PARLIAMENT
             concerning the revision of the financial perspective (2001-06)
          Financing of the programme of assistance for the western Balkans
                        Reclassification of aid to Cyprus and Malta
1.    NEW FACTORS TO BE TAKEN INTO ACCOUNT SINCE THE CONCLUSION OF THE
      INTERINSTITUTIONAL AGREEMENT (IIA) OF 6 MAY 1999
1.1.  Developments in the Balkans
      The financial perspective agreed by the institutions after the Berlin European Council
      in March 1999 does not allow for the possible impact on the Community budget of
      the events occurring at the time in the Balkans. However, a declaration of the
      European Parliament and the Council annexed to the IIA reads, "In view of the
      developments in the Balkan situation, particularly in Kosovo, the two arms of the
      budgetary authority request the Commission, when needs have been ascertained and
      estimated, to submit the necessary budget proposals, including, if appropriate, a
      proposal for revision of the financial perspective".
      The budgetary authority decided on 16 December 1999 to draw €200 million from the
      flexibility instrument to provide the additional funding required in 2000 for aid for the
      reconstruction of Kosovo. At that time the Commission confirmed that it would
      propose at a later date a programme of assistance for the period 2000-06 for the
      western Balkans, including Kosovo, the amount of which would require it to present a
      proposal for the revision of the financial perspective, accompanied by a programming
      of expenditure for heading 4. Parliament and the Council, for their part, agreed “that a
      programme of assistance for the western Balkans had to be put in place”. They added
      “that if the amount finally agreed involved a financial effort that was significantly
      more than already programmed, this would mean exceeding the current ceilings for
      heading 4 of the financial perspective”.
      This communication contains the Commission's proposal for the revision of the
      financial perspective, in conjunction with the programme of assistance for the
      reconstruction, development and stabilisation of the western Balkans and a new
      programming for heading 4 set out in separate documents.
1.2.  The development of the enlargement process
      The financial perspective agreed in the IIA contains a heading 7 covering
      pre-accession aid for the ten applicant countries from central and eastern Europe.
      In line with the conclusions of the December 1999 Helsinki European Council for the
      development of the enlargement process, the Council recently adopted, on a proposal
      by the Commission a new regulation concerning aid for Cyprus and Malta, which
                                              2
 ---pagebreak---        currently comes under cooperation with non-member Mediterranean countries
       covered by heading 4 of the financial perspective, to make it pre-accession aid instead.
       For the sake of consistency in the presentation of the financial framework it would
       therefore be logical for the allocations earmarked for this instrument of pre-accession
       aid to the two applicant countries concerned to be included under the corresponding
       heading of the financial perspective. Parliament asked for this reclassification during
       the debate on the 2000 budget.
2.     FINANCING OF THE PROGRAMME OF ASSISTANCE FOR THE RECONSTRUCTION,
       DEVELOPMENT AND STABILISATION OF THE WESTERN BALKANS (CARDS
       PROGRAMME)
2.1.   Requirements to be covered under heading 4 of the financial perspective
       The proposal for a regulation implementing this programme is contained in
       COM(2000) … final presented by the Commission.
2.1.1. Features of the programme proposed
       The programme proposed concerns Albania, Bosnia-Herzegovina, Croatia, the
       Federal Republic of Yugoslavia (Serbia, Montenegro and Kosovo) and the Former
       Yugoslav Republic of Macedonia. The aim is to establish a comprehensive legal
       framework for cooperation between the European Union and the western Balkans and
       to implement an integrated programme of reconstruction and economic development.
       Each country's participation will be conditional on compliance with certain criteria
       concerning democracy, the rule of law and human rights.
       The assistance offered is mainly designed to contribute to the development of the
       stabilisation and association process. The regional dimension receives special attention
       in order to support the Union's role within the Stability Pact.
       The bodies set up by the international community for the civilian administration of
       certain regions, namely the High Representative in Bosnia and the United Nations
       Interim Mission in Kosovo, will be duly consulted for the provision of assistance to
       these regions.
       The more specific objectives of the programme are:
       – the reconstruction and stabilisation of the region;
       – the creation of an institutional and legislative framework to support democracy, the
          rule of law, human rights and minorities;
       – development and economic reforms directed at the market economy;
       – development of closer relations between recipient countries and between these
          countries and the European Union.
                                               3
 ---pagebreak--- 2.1.2.    Additional resources to be provided
          A reference amount of up to €5.5 billion is earmarked for the period 2000-06 for
          expenditure under this programme and for macro-financial aid to the countries in the
          region. The indicative breakdown of this amount is as follows:
                            2000       2001     2002    2003   2004      2005      2006     Total
Albania, Croatia,              203       255       230     210    210       200       200     1508
Bosnia-Herzegovina
(including macro-fin.
assistance), Fyrom,
Montenegro
Serbia                            -       40       320     420    420       430       430     2060
                                      (+200)                                                (+200)
Kosovo                         310       350       240     110     30        30        30     1100
Regional cooperation            28        80        90      90     90        90        90      558
Macro-fin. assistance         pm*         75      pm*     pm*    pm*       pm*       pm*        75
Total                          541       800       880     830    750       750       750     5300
                                      (+200)                                                (+200)
          *Actual expenditure under this head will be charged to the allocations appearing
          elsewhere in the table for the recipient countries.
          The €541 for 2000 is already budgeted for; this includes, for Kosovo, €30 million
          carried over from 1999 to 2000 and €40 million to be redeployed in the course of
          2000. This amount incorporates the drawing on the flexibility instrument decided by
          the budgetary authority.
          For 2001, €40 million is planned at all events for Serbia to assist the democratic
          forces and the towns administered by the opposition. If the political conditions
          imposed on the granting of other aid were to be satisfied this year already, an
          additional amount of up to €200 million would have to be taken into account.
          When the preliminary draft budget for 2000 was established, €1.85 billion was already
          programmed over the period 2000-06 for assistance for the western Balkans. With the
          amounts now entered in the 2000 budget, the additional financing requirement to be
          covered from 2001 to 2006 for the new CARDS programme is €3.43 billion.
2.2.      The arrangements proposed for financing the supplementary expenditure
          Paragraph 19 of the IIA provides that the financial perspective may be revised in the
          event of unforeseen circumstances. However, in accordance with paragraph 21, the
          institutions must examine the scope for reallocating expenditure between the
          programmes covered by the heading concerned by the revision, the objective being
          that a significant amount, in absolute terms and as a percentage of the new
          expenditure planned, should be found within the existing ceiling for the heading.
                                                   4
 ---pagebreak---        The institutions must also examine the scope for offsetting raising the ceiling for one
       heading by lowering the ceiling for another.
2.2.1. Possibilities of redeployment of expenditure under heading 4
       The Commission has reviewed the programming underlying the Agenda 2000 financial
       framework, with the dual concern of identifying any margins that could be used to
       finance new measures for the Balkans and of preserving the priorities set for the
       conduct of the Union's external policies.
       The results of this review are set out in COM(2000) …final which has also been
       transmitted by the Commission. It is seen that a total of €1.43 billion could be
       reassigned over the period 2001-06 for the planned financing of the CARDS
       programme.
2.2.2. Raising the heading 4 ceilings in connection with the CARDS programme
       On the basis of this new programming, raising the heading 4 ceiling by €300 million
       each year from 2001 to 2006 should make it possible to cover the additional needs for
       the new CARDS programme and leave the necessary safety margins.
                                             2001      2002    2003     2004     2005    2006
        CARDS programme                         800      880      830     750      750     750
                                             (+200)
        Other external action                  4145     4196     4345    4496     4591    4708
        Total                                  4945     5076     5175    5246     5341    5458
                                             (+200)
        Present ceiling (current prices)       4735     4840     4948    5058     5170    5285
        Raising of ceiling                     +300     +300     +300    +300     +300    +300
        New ceiling                            5035     5140     5248    5358     5470    5585
        Margin                                    90      64       73     112      129     127
        Flexibility instrument                (200)
       The increase in the ceiling for 2001 allows, in respect of Serbia, only for the
       €40 million already provided for, as mentioned above. If the conditions for the full
       amount of aid earmarked for this country in the CARDS programme were to be
       satisfied this year, the margin available beneath the ceiling for the heading and the
       flexibility instrument would be called on in accordance with the IIA.
       From 2002 onwards, the ceilings allow for all the programmed assistance for Serbia.
       However, the increases will be "frozen" and may not be used for other purposes as
       long as the political conditions attached to the granting of the aid have not been
       satisfied in Serbia. The Commission proposes that this be stipulated in the decision on
       the revision of the financial perspective to be taken by the budgetary authority.
                                                5
 ---pagebreak--- 2.2.3. Savings expected beneath the ceiling for sub-heading 1.a "CAP (not including rural
       development)"
       In order to keep unchanged the overall expenditure ceiling, the Commission has
       considered the possibilities of offsetting the increase in the heading 4 ceiling by
       lowering the ceilings for the other headings.
       The Commission can see no real possibility of offsetting the increase by lowering the
       ceilings for any of the other headings (or sub-headings) 1.b, 3, 5 or 6 of the financial
       perspective. The IIA rules out any such reductions, in connection with a revision of
       the financial perspective, for headings 2 and 7.
       On the other hand, the most recent forecasts available for expenditure under
       sub-heading 1.a show that for 2001, assuming no change in legislation and tight
       management by the Commission, there will be an available margin of some
       €400 million. For 2002, the planned adjustments to certain market organisations, in
       particular the sugar market, should release an equivalent margin beneath this ceiling.
       The Commission therefore proposes that the ceiling for sub-heading 1.a be lowered by
       €300 million for each of the two years 2001 and 2002, thus leaving a certain safety
       margin. Although similar savings should be made in the subsequent years (2003-06), it
       is proposed that the present ceiling for the sub-heading for these years be left
       unchanged in order not to prejudge the outcome of the examination of the report that
       the Commission must present to the Council in 2002, as required by the conclusions
       of the Berlin European Council, on the development of agricultural expenditure and
       any proposals which may be attached in line with the objectives of the reform.
2.3.   Impact on the overall expenditure ceilings in the financial perspective
       For 2001 and 2002, the overall ceiling of the financial perspective in appropriations
       for commitments would not be affected because of the offsetting between headings 4
       and 1.a. The same would be true for the overall ceiling in appropriations for
       payments.
       For subsequent years, the overall ceiling in appropriations for commitments, like that
       for heading 4, would rise by €300 million a year. It is proposed, however, that this
       increase should not be taken into account in the total expenditure in commitments in
       the budget procedures for the years in question. The overall ceiling in appropriations
       for payments would therefore remain unchanged.
3.     RECLASSIFICATION, UNDER HEADING 7           OF THE FINANCIAL PERSPECTIVE, OF AID
       TO CYPRUS AND MALTA
3.1.   Significance of this reclassification
       The purpose of transferring this aid from heading 4 to heading 7 is to identify it, in the
       presentation of the financial perspective table, as pre-accession aid, the status it will
       have when the legal base is renewed.
       Paragraph 21 of the IIA provides that when the financial perspective is revised, the
       amounts available under headings 1 to 6 cannot be used for heading 7. The
                                               6
 ---pagebreak---        Commission believes, however, that in this specific case the proposed operation does
       not alter the purpose to which the resources are assigned. The same amounts continue
       to be used for the same type of measures for the same recipients. It is no more than a
       transfer of budget lines from one heading to another to reflect the new title given to
       this aid. It therefore believes that this reclassification is possible by a simple revision
       of the financial perspective, rather than by the full-dress procedure, for purely formal
       reasons, of amending the IIA.
3.2.   Practical arrangements
3.2.1. Financial perspective table
       On the basis of the amounts already programmed for aid to Cyprus and Malta and the
       details given in the financial statement accompanying the proposal for a new legal
       base, the total annual allocation for these two countries is €20 million a year.
       Applying the same treatment in the financial perspective as for pre-accession aid for
       the applicant countries of central and eastern Europe, this constant amount should be
       entered each year from 2001 to 2006, regardless of the actual date of accession. The
       transfer of this amount in appropriations for commitments does not affect the overall
       ceiling for appropriations for payments.
       For each of these years, the heading 4 ceiling would be lowered by this amount.
       Heading 7 (Pre-accession aid) would be divided into two sub-headings:
       – One for the countries of central and eastern Europe, with the amounts currently
           entered in the financial perspective and the breakdown given between the three
           instruments being applied for these countries (SAPARD, ISPA and PHARE).
       – The other for the Mediterranean countries, covering for the moment the aids to
           Cyprus and Malta, with an annual total of €20 million, with no further breakdown,
           as pre-accession aid for these countries would come under a single specific
           instrument.
3.2.2. Rewording of paragraph 11 of the IIA
       Paragraph 11 of the IIA provides that the breakdown between the three pre-accession
       aid instruments in heading 7 of the financial perspective is indicative and can be
       altered by common agreement of the two arms of the budgetary authority during the
       budgetary procedure. This provision would be retained, but it would be specified that
       it applies solely to the sub-heading concerning the applicant countries in central and
       eastern Europe.
3.2.3. Future reclassification, under heading 7 of the Financial Prespective, of aid to
       Turquey
       Once the legal basis is adopted, the Commission also intends to propose a transfer of
       aid for Turquey from heading 4 to heading 7. To indicate this approach, a budget line
       for pre-accession aid to Turquey with a p.m. will be introduced under heading 7 in the
       PDB 2001. The actual transfer of the corresponding appropriations from heading 4 to
       heading 7 would, however, be intertaken at an appropriate later stage.
                                                7
 ---pagebreak--- 4. OVERVIEW OF THE PROPOSED REVISION OF THE FINANCIAL PERSPECTIVE
   The table below summarises the proposed changes to the ceilings in the financial
   perspective. These amounts are expressed in current values.
   In order to remain coherent and neutral in relation to the technical adjustments already
   made for 2001 or to those which will be made for subsequent years, the formal
   decision on the revision of the financial perspective must refer to the basic table
   agreed in the IIA, which is expressed in constant 1999 prices. The amounts in current
   values are converted into 1999 prices by means of the following deflators:
   - for the amounts relating to 2001: a flat 2% a year applicable to heading 1 (4.04%
   over the two years); the deflator actually used for the technical adjustment for 2001
   for amounts under the other headings concerned (headings 4 and 7), i.e. 3.84% over
   the two years;
   - for the amounts relating to 2002-06: the deflator applied from 2002 onwards is 2% a
   year for all headings, in accordance with the general assumption used for the
   construction of the financial perspective and the overall inflation rate applicable to the
   heading 1 ceilings.
                                          8
 ---pagebreak---                                   CHANGES IN THE CEILINGS OF THE FINANCIAL PERSPECTIVE (CURRENT PRICES)
Headings                                                  2001      2002      2003       2004      2005    2006     Total
1. Agriculture                                              -300      -300      -          -         -       -       -600
1.a CAP expenditure (not including rural development)       -300      -300      -          -         -       -       -600
4. External action                                          +280      +280      +280       +280      +280    +280   1680
- Financing of the CARDS programme                          +300      +300      +300       +300      +300    +300  +1800
- Transfer of aid to Cyprus and Malta                         -20      -20        -20        -20       -20     -20   -120
7. Pre-accession aid                                         +20       +20        +20        +20       -20     +20  +120
7.a Applicant countries in central and eastern Europe                                - unchanged -
- Agriculture
- Pre-accession structural instruments
- PHARE (applicant countries)
7.b Mediterranean applicant countries                        +20       +20        +20        +20       +20     +20  +120
Total appropriations for commitments                            0        0      +300       +300      +300    +300  +1200
Total appropriations for payments                                                    - unchanged -
                                                             9
 ---pagebreak---                                                         2000/0109 (COD)
                                         Proposal for a
     DECISION OF THE EUROPEAN PARLIAMENT AND THE COUNCIL
                    concerning the revision of the financial perspective
      (Interinstitutional Agreement of 6 May 1999 on budgetary discipline and
                         improvement of the budgetary procedure)
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN
UNION,
Having regard to the Interinstitutional Agreement of 6 May 1999 on budgetary discipline
and improvement of the budgetary procedure,1 and in particular paragraphs 19, 20 and 21
thereof,
Having regard to the Commission proposal,2
Whereas:
(1)     The Commission has presented a proposal for a Regulation for implementing a
        programme of assistance for the reconstruction, development and stabilisation of
        the western Balkans.3
(2)     Apart from the possibilities of reallocation within heading 4 (External action) of
        the financial perspective, the financing of this programme will involve raising the
        ceiling for this heading in the years 2001 to 2006. The increases for 2002 onwards
        may not be used as long as the political conditions imposed on the granting of aid
        to Serbia, as set out within this programme, have not been satisfied in that country.
(3)     The expenditure forecasts for 2001 in sub-heading 1.a "CAP expenditure (not
        including rural development)" show that, assuming no change in legislation, a
        margin will be available beneath the ceiling. The planned adjustments to certain
        market organisations also point to such a margin in 2002. Although similar savings
        are likely to be made in subsequent years, it would be wrong to prejudge the
        outcome of the review, scheduled for 2002 in accordance with the conclusions of
        the Berlin European Council, of the development of agricultural spending. The
        ceiling for sub-heading 1.a can be lowered in 2001 and 2002 by an amount
        equivalent to the amount by which the heading 4 ceiling is raised for these two
        years.
1
        OJ C 172, 18.6.1999, p. 1.
2
        COM(2000) … final of …
3
        COM(2000) … final of …
                                                 10
 ---pagebreak--- (4)       In accordance with the conclusions of the Helsinki European Council, the Council
          adopted, on a proposal by the Commission, a new Regulation for aid to Cyprus
          and Malta to give it the status of pre-accession aid. The amount of this aid already
          programmed should therefore be reclassified from heading 4 to a special
          subheading inserted in heading 7 (Pre-accession aid) of the financial perspective.
          Paragraph 11 of the Interinstitutional Agreement needs to be redrafted to take
          account of this reclassification.
HAVE DECIDED AS FOLLOWS:
                                               Article 1
1. The ceilings and the nomenclature of the financial perspective for EU-15 contained in
Annex I to the Interinstitutional Agreement are amended on the basis of the following
amounts expressed in current prices:
Heading                                  2001       2002   2003     2004    2005     2006
1. Agriculture                              -300      -300   -        -       -        -
1.a CAP expenditure (not including          -300      -300   -        -       -        -
rural development)
4. External action                         +280      +280   +280     +280    +280     +280
- Financing of the CARDS programme         +300      +300   +300     +300    +300     +300
- Transfer of aid to Cyprus and Malta        -20       -20     -20      -20     -20      -20
7. Pre-accession aid                         +20       +20    +20      +20      -20     +20
7.a Applicant countries in central and
                                                           - Unchanged -
eastern Europe
- Agriculture
- Pre-accession structural instruments
- PHARE (applicant countries)
7.b Mediterranean applicant countries        +20       +20    +20      +20     +20      +20
Total         appropriations         for       0         0  +300     +300    +300     +300
commitments
Total appropriations for payments                          - Unchanged -
2. The increases in the heading 4 ceiling which are linked to the financing of the assistance
for Serbia will not be used before the political conditions attached to the granting of the
aid in the programme for this country have been satisfied.
If the political conditions are met for the year 2003, The Commission and the budgetary
authority undertake to act, in the annual budget procedures, as if the total ceilings in
appropriations for commitments for the years 2003 to 2006 were still the same as in the
initial financial perspective of 1999 indicated in footnote (3) of the tables annexed to this
                                                     11
 ---pagebreak--- decision. In this case, the origin of the offsetting savings to the increase of category 4 will
be decided for the period 2003-2006 when the Commission will have presented the
conclusions of the forthcoming review and report on the evolution of agriculture
expenditure accompagnied, if necessary, by appropriate proposals..
3. The financial framework for EU-21 contained in Annex II to the Interinstitutional
Agreement is amended in accordance with paragraph 1.
                                            Article 2
The financial perspective table for EU-15 and the financial framework for EU-21, drawn
up in 1999 prices on the basis of the revisions set out in Article 1(1), are contained in
Annex A to this Decision. These tables shall replace those appearing in Annexes I and II
respectively to the Interinstitutional Agreement of 6 May 1999.
                                            Article 3
Annex B to this Decision contains the financial perspective table for EU-15 applicable to
2001, incorporating the technical adjustment and the revisions set out in Article 1(1), and
the corresponding financial framework for EU-21. These tables shall replace those
contained in the Commission communication on the technical adjustment of the financial
perspective for 2001 in line with movements in GNP and prices.4
                                            Article 4
The second subparagraph of paragraph 11 of the Interinstitutional Agreement is amended
as follows:
"However, the ceilings under sub-heading 7.a of the financial perspective (pre-accession
aid for the countries of central and eastern Europe) are indicative …".
Done at Brussels,
For the European Parliament                     For the Council
The President                                   The President
4
        COM(2000) 93 final of 17.2.2000.
                                                  12
 ---pagebreak---                                                         ANNEX A
                                       FINANCIAL PERSPECTIVE EU-15 (REVISED)
                                                  (EUR million - 1999 prices)
APPROPRIATIONS FOR COMMITMENTS                                     2000    2001   2002   2003   2004   2005   2006
1. AGRICULTURE                                                    40.920  42.512 43.617 43.770 42.760 41.930 41.660
CAP (not including rural development)                             36.620  38.192 39.287 39.430 38.410 37.570 37.290
Rural development and accompanying measures                        4.300   4.320  4.330  4.340  4.350  4.360  4.370
2. STRUCTURAL OPERATIONS                                          32.045  31.455 30.865 30.285 29.595 29.595 29.170
Structural Funds                                                  29.430  28.840 28.250 27.670 27.080 27.080 26.660
Cohesion Fund                                                      2.615   2.615  2.615 2.615  2.515  2.515  2.510
3. INTERNAL POLICIES (1)                                           5.930   6.040  6.150  6.260  6.370  6.480  6.600
4. EXTERNAL ACTION                                                 4.550   4.830  4.834  4.839  4.843  4.849  4.854
5. ADMINISTRATION (2)                                              4.560   4.600  4.700  4.800  4.900  5.000  5.100
6. RESERVES                                                         900     900    650    400    400    400    400
Monetary reserve                                                    500     500    250
Emergency aid reserve                                               200     200    200    200    200    200    200
Guarantee reserve                                                   200     200    200    200    200    200    200
7. PRE-ACCESSION AID                                               3.120   3.139  3.139  3.139  3.139  3.138  3.138
7a Applicant countries in central and eastern Europe               3.120   3.120  3.120 3.120   3.120  3.120  3.120
Agriculture                                                         520     520    520    520    520    520    520
Pre-accession structural instrument                                1.040   1.040  1.040 1.040  1.040  1.040  1.040
PHARE (applicant countries)                                        1.560   1.560  1.560 1.560  1.560  1.560  1.560
7b Mediterranean applicant countries                                         19    19      19     19     18     18
TOTAL APPROPRIATIONS FOR COMMITMENTS (3)                          92.025 93.476  93.955 93.493 92.007 91.392 90.922
TOTAL APPROPRIATIONS FOR PAYMENTS                                 89.600 91.110  94.220 94.880 91.910 90.160 89.620
Appropriations for payments as % of GNP                           1,13% 1,12%    1,13%  1,11%  1,05%  1,00%  0,97%
                                                         13
 ---pagebreak--- AVAILABLE FOR ACCESSION (appropriations for payments)                                      4.140 6.710         8.890 11.440 14.220
Agriculture                                                                                1.600 2.030         2.450      2.930    3.400
Other expenditure                                                                          2.540 4.680         6.440      8.510 10.820
CEILING, APPROPRIATIONS FOR PAYMENTS                                   89.600    91.110   98.360 101.590 100.800 101.600 103.840
Ceiling, payments as % of GNP                                           1,13%    1,12%    1,18% 1,19% 1,15% 1,13% 1,13%
Margin for unforeseen expenditure                                       0,14%    0,15%    0,09% 0,08% 0,12% 0,14% 0,14%
Own resources ceiling                                                  1,27%     1,27%    1,27% 1,27% 1,27% 1,27% 1,27%
(1) In accordance with Article 2 of Decision No182/1999/EC of the European Parliament and of the Council and Article 2 of Council
Decision1999/64/Euratom (OJ L 26, 1.2.1999, p.1 and p. 34), €11 510 million at current prices is available for research over the period
2000-02.
(2) The expenditure on pensions included under the ceiling for this heading is calculated net of staff contributions to the pension scheme,
up to a maximum of €1 100 million at 1999 prices for the period 2000-06.
(3) The Commission and the budgetary authority undertake to act, during the annual budget procedures, as if the actual ceilings for total
appropriations for commitments were as follows for the years 2003 to 2006:
                                                   2003     2004 2005           2006
                                                  93.215 91.735 91.125        90.660
                                                              14
 ---pagebreak---                                        FINANCIAL PERSPECTIVE EU-21 (REVISED)
                                                 (EUR million - 1999 prices)
APPROPRIATIONS FOR COMMITMENTS                                 2000     2001   2002   2003   2004   2005   2006
1. AGRICULTURE                                               40.920    42.512 43.617 43.770 42.760 41.930 41.660
CAP (not including rural development)                        36.620    38.192 39.287 39.430 38.410 37.570 37.290
Rural development and accompanying measures                   4.300     4.320  4.330  4.340  4.350  4.360  4.370
2. STRUCTURAL OPERATIONS                                     32.045    31.455 30.865 30.285 29.595 29.595 29.170
Structural Funds                                             29.430    28.840 28.250 27.670 27.080 27.080 26.660
Cohesion Fund                                                 2.615     2.615 2.615  2.615  2.515  2.515  2.510
3. INTERNAL POLICIES (1)                                      5.930     6.040  6.150  6.260  6.370  6.480  6.600
4. EXTERNAL ACTION                                            4.550     4.830  4.834  4.839  4.843  4.849  4.854
5. ADMINISTRATION (2)                                         4.560     4.600 4.700  4.800  4.900  5.000  5.100
6. RESERVES                                                    900       900    650    400    400    400    400
Monetary reserve                                               500       500    250
Emergency aid reserve                                          200       200    200    200    200    200    200
Guarantee reserve                                               200      200    200    200    200    200    200
7. PRE-ACCESSION AID                                          3.120     3.139  3.139  3.139  3.139  3.138  3.138
7a Applicant countries in central and eastern Europe          3.120     3.120 3.120  3.120  3.120   3.120  3.120
Agriculture                                                    520       520    520    520    520    520    520
Pre-accession structural instrument                           1.040     1.040  1.040  1.040 1.040  1.040  1.040
PHARE (applicant countries)                                   1.560     1.560  1.560  1.560  1.560  1.560  1.560
7b Mediterranean applicant countries                                      19     19     19     19     18     18
8. ENLARGEMENT                                                                6.450  9.030  11.610 14.200 16.780
Agriculture                                                                   1.600  2.030  2.450  2.930  3.400
Structural operations                                                          3.750  5.830  7.920 10.000 12.080
Internal policies                                                               730    760    790    820    850
Administration                                                                  370    410    450    450    450
                                                        15
 ---pagebreak--- CEILING, APPROPRIATIONS FOR COMMITMENTS (3)                          92.025     93.476 100.405 102.523 103.617 105.592 107.702
CEILING, APPROPRIATIONS FOR PAYMENTS                                 89.600     91.110 98.360 101.590 100.800 101.600 103.840
of which: enlargement                                                                      4.140      6.710     8.890 11.440 14.220
Ceiling, payments as % of GNP                                        1,13%      1,12% 1,14% 1,15% 1,11% 1,09% 1,09%
Margin for unforeseen expenditure                                    0,14%      0,15% 0,13% 0,12% 0,16% 0,18% 0,18%
Own resources ceiling                                                1,27%      1,27% 1,27% 1,27% 1,27% 1,27% 1,27%
(1) In accordance with Article 2 of Decision No182/1999/EC of the European Parliament and of the Council and Article 2 of Council
Decision1999/64/Euratom (OJ L 26, 1.2.1999, p.1 and p. 34), €11 510 million at current prices is available for research over the period
2000-02.
(2) The expenditure on pensions included under the ceiling for this heading is calculated net of staff contributions to the pension scheme,
up to a maximum of €1 100 million at 1999 prices for the period 2000-06.
(3) The Commission and the budgetary authority undertake to act, during the annual budget procedures, as if the actual ceilings for total
appropriations for commitments were as follows for the years 2003 to 2006:
                                                  2003       2004       2005       2006
                                                102.245 103.345 105.325 107.440
                                                                16
 ---pagebreak---                                                             ANNEX B
                                             FINANCIAL PERSPECTIVE EU-15 (REVISED)
                                                     ADJUSTED TO 2001 PRICES
                                                          (EUR million)
                                                              Current prices        2001 prices
APPROPRIATIONS FOR COMMITMENTS                                     2000       2001     2002      2003   2004   2005   2006
1. AGRICULTURE                                                    41.738     44.230   45.379    45.538 44.488 43.624 43.344
CAP (not including rural development)                             37.352     39.735   40.874    41.023 39.962 39.088 38.797
Rural development and accompanying measures                        4.386      4.495    4.505     4.515  4.526  4.536  4.547
2. STRUCTURAL OPERATIONS                                          32.678     32.720   32.106    31.503 30.785 30.785 30.343
Structural Funds                                                  30.019     30.005   29.391    28.788 28.174 28.174 27.737
Cohesion Fund                                                      2.659      2.715    2.715     2.715  2.611  2.611  2.606
3. INTERNAL POLICIES (1)                                           6.031      6.272    6.386     6.500  6.614  6.729  6.853
4. EXTERNAL ACTION                                                 4.627      5.015    5.019     5.025  5.029  5.035  5.040
5. ADMINISTRATION (2)                                              4.638      4.776    4.880     4.984  5.088  5.192  5.296
6. RESERVES                                                         906        916      666       416    416    416    416
Monetary reserve                                                    500        500      250
Emergency aid reserve                                               203        208      208       208    208    208    208
Guarantee reserve                                                   203        208      208       208    208    208    208
7. PRE-ACCESSION AID                                               3.174      3.260    3.260     3.260  3.260  3.259  3.259
7a Applicant countries in central and eastern Europe               3.174      3.240    3.240     3.240  3.240  3.240  3.240
Agriculture                                                         529        540      540       540    540    540    540
Pre-accession structural instrument                                1.058      1.080    1.080     1.080  1.080  1.080  1.080
PHARE (applicant countries)                                        1.587      1.620    1.620     1.620  1.620  1.620  1.620
7b Mediterranean applicant countries                                            20       20        20     20     19     19
TOTAL APPROPRIATIONS FOR COMMITMENTS (3)                          93.792     97.189   97.696    97.226 95.680 95.040 94.551
                                                            17
 ---pagebreak--- TOTAL APPROPRIATIONS FOR PAYMENTS                                           91.322       94.730       97.975       98.671 95.581 93.759 93.197
Appropriations for payments as % of GNP                                     1,12%         1,11%       1,12%        1,10% 1,04% 1,00% 0,97%
AVAILABLE FOR ACCESSION (appropriations for payments)                                                  4.306        6.979     9.247 11.899 14.792
Agriculture                                                                                            1.665       2.112     2.549     3.048     3.537
Other expenditure                                                                                      2.641       4.867     6.698     8.851 11.255
CEILING, APPROPRIATIONS FOR PAYMENTS                                        91.322       94.730      102.281      105.650 104.828 105.658 107.989
Ceiling, payments as % of GNP                                               1,12%         1,11%       1,17%        1,18% 1,14% 1,12% 1,12%
Margin for unforeseen expenditure                                           0,15%         0,16%       0,10%        0,09% 0,13% 0,15% 0,15%
Own resources ceiling                                                       1,27%         1,27%       1,27%        1,27% 1,27% 1,27% 1,27%
(1) In accordance with Article 2 of Decision No182/1999/EC of the European Parliament and of the Council and Article 2 of Council Decision
1999/64/Euratom (OJ L 26, 1.2.1999, p. 1 and p. 34), €11 510 million at current prices is available for research over the period 2000-02.
(2) The expenditure on pensions included under the ceiling for this heading is calculated net of staff contributions to the pension scheme, up to a
maximum of €1 100 million at 1999 prices for the period 2000-06.
(3) The Commission and the budgetary authority undertake to act, during the annual budget procedures, as if the actual ceilings for total
appropriations for commitments were as follows for the years 2003 to 2006:
                                                       2003          2004        2005        2006
                                                      96.937        95.397      94.762      94.279
                                                                      18
 ---pagebreak---                                            FINANCIAL FRAMEWORK EU-21 (REVISED)
                                                   ADJUSTED TO 2001 PRICES
                                                         (EUR million)
                                                        Current prices        2001 prices
APPROPRIATIONS FOR COMMITMENTS                                2000      2001     2002      2003   2004   2005   2006
1. AGRICULTURE                                              41.738     44.230   45.379    45.538 44.488 43.624 43.344
CAP (not including rural development)                       37.352     39.735   40.874    41.023 39.962 39.088 38.797
Rural development and accompanying measures                   4.386     4.495    4.505     4.515  4.526  4.536  4.547
2. STRUCTURAL OPERATIONS                                     32.678    32.720   32.106    31.503 30.785 30.785 30.343
Structural Funds                                            30.019     30.005   29.391    28.788 28.174 28.174 27.737
Cohesion Fund                                                2.659     2.715     2.715    2.715  2.611  2.611  2.606
3. INTERNAL POLICIES (1)                                      6.031     6.272    6.386     6.500  6.614  6.729  6.853
4. EXTERNAL ACTION                                            4.627     5.015    5.019     5.025  5.029  5.035  5.040
5. ADMINISTRATION (2)                                        4.638     4.776     4.880     4.984  5.088  5.192  5.296
6. RESERVES                                                    906       916      666       416    416    416    416
Monetary reserve                                               500       500      250
Emergency aid reserve                                          203       208      208       208    208    208    208
Guarantee reserve                                              203       208      208       208    208    208    208
7. PRE-ACCESSION AID                                          3.174     3.260    3.260     3.260  3.260  3.259  3.259
7a Applicant countries in central and eastern Europe         3.174     3.240     3.240    3.240   3.240  3.240  3.240
Agriculture                                                    529       540      540       540    540    540    540
Pre-accession structural instrument                           1.058     1.080    1.080     1.080 1.080  1.080  1.080
PHARE (applicant countries)                                  1.587      1.620    1.620     1.620  1.620  1.620  1.620
7b Mediterranean applicant countries                                      20      20         20     20     19     19
8. ENLARGEMENT                                                                   6.709    9.393  12.076 14.770 17.455
Agriculture                                                                      1.665    2.112  2.549  3.048  3.537
Structural operations                                                            3.902     6.066  8.240 10.404 12.568
Internal policies                                                                 758       789    820    851    883
                                                           19
 ---pagebreak--- Administration                                                                                     384         426        467      467       467
TOTAL APPROPRIATIONS FOR COMMITMENTS (3)                              93.792        97.189      104.405      106.619 107.756 109.810 112.006
TOTAL APPROPRIATIONS FOR PAYMENTS                                     91.322        94.730      102.281      105.650 104.828 105.658 107.989
of which: enlargement                                                                            4.306        6.979      9.247 11.899 14.792
Appropriations for payments as % of GNP                               1,12%         1,11%        1,13%        1,13% 1,10% 1,08% 1,07%
Margin for unforeseen expenditure                                     0,15%         0,16%        0,14%        0,14% 0,17% 0,19% 0,20%
Own resources ceiling                                                 1,27%         1,27%        1,27%        1,27% 1,27% 1,27% 1,27%
(1) In accordance with Article 2 of Decision No182/1999/EC of the European Parliament and of the Council and Article 2 of Council Decision
1999/64/Euratom (OJ L 26, 1.2.1999, p. 1 and p. 34), €11 510 million at current prices is available for research over the period 2000-02.
(2) The expenditure on pensions included under the ceiling for this heading is calculated net of staff contributions to the pension scheme, up to a
maximum of €1 100 million at 1999 prices for the period 2000-06.
(3) The Commission and the budgetary authority undertake to act, during the annual budget procedures, as if the actual ceilings for total
appropriations for commitments were as follows for the years 2003 to 2006:
                                                    2003            2004        2005        2006
                                                  106.330         107.473     109.532      111.734
                                                                    20