natgillin/translations-raw huggingface dataset:
On the basis of the 1975 Treaty, it started to create new budgetary lines which in many cases developed into major actions over consecutive annual budgets.
On the basis of the 1975 Treaty, it started to create new budgetary lines which in many cases developed into major actions over consecutive annual budgets.
During the 1980's the Council developed the practice to enter into the legislative acts it adopted maximum amounts for the corresponding spending.
During the 1980's the Council developed the practice to enter into the legislative acts it adopted maximum amounts for the corresponding spending.
The Single European Act (1986) promoted the first European policies which lead to the multiplication of multi-annual programmes in the field of research.
The Single European Act (1986) promoted the first European policies which lead to the multiplication of multi-annual programmes in the field of research.
The first framework programme is mentioned in art.
The first framework programme is mentioned in art.
166 of the Single European Act (1986) and education (COMETT programme 1987-1989) The Parliament argued that such a practice contributed to reduce its budgetary power on non-compulsory expenditure entrusted to it by the Treaty.
166 of the Single European Act (1986) and education (COMETT programme 1987-1989) The Parliament argued that such a practice contributed to reduce its budgetary power on non-compulsory expenditure entrusted to it by the Treaty.
The joint declaration of 30 June 1982 aimed to find a compromise to overcome such confrontation:
The joint declaration of 30 June 1982 aimed to find a compromise to overcome such confrontation:
"In order that the full importance of the budget procedure may be preserved, the fixing of maximum amounts by regulation must be avoided."
"In order that the full importance of the budget procedure may be preserved, the fixing of maximum amounts by regulation must be avoided."
OJ C 194 , 28.07.1982 p.
OJ C 194 , 28.07.1982 p.
At the same time, the Parliament, the Council and the Commission acknowledge the necessity of a legal basis for "significant actions".
At the same time, the Parliament, the Council and the Commission acknowledge the necessity of a legal basis for "significant actions".
The implementation of these two points proved to be unsatisfactory.
The implementation of these two points proved to be unsatisfactory.
"Maximum amounts" were replaced by "amounts deemed necessary" in the multi-annual programmes and systematically entered by the Council in all multi-annual programmes as ceilings, while there were considered purely 'indicative' by the Parliament and increased or reduced in the annual budgets according to its priorities.
"Maximum amounts" were replaced by "amounts deemed necessary" in the multi-annual programmes and systematically entered by the Council in all multi-annual programmes as ceilings, while there were considered purely 'indicative' by the Parliament and increased or reduced in the annual budgets according to its priorities.
Concerning the aspect of legal basis, the definition of "significant action" as opposed to "specific action" created confusion in the annual budgets.
Concerning the aspect of legal basis, the definition of "significant action" as opposed to "specific action" created confusion in the annual budgets.
With the introduction of the co-decision procedure by the Amsterdam Treaty (May 1999) and the new balance of legislative competences between European Parliament and Council, the problem "amounts deemed necessary" was formalised in the Joint Declaration of 1995 on the Incorporation of Financial Provisions in legislative acts.
With the introduction of the co-decision procedure by the Amsterdam Treaty (May 1999) and the new balance of legislative competences between European Parliament and Council, the problem "amounts deemed necessary" was formalised in the Joint Declaration of 1995 on the Incorporation of Financial Provisions in legislative acts.
In 1999, this declaration, with a few modifications, was included in the current Inter-institutional Agreement (IIA) of 6 May 1999 (articles 33 and 34)
In 1999, this declaration, with a few modifications, was included in the current Inter-institutional Agreement (IIA) of 6 May 1999 (articles 33 and 34)
OJ C172 of 18.06.1999, page 1 .
OJ C172 of 18.06.1999, page 1 .
The Court ruling of 12 May 1998
The Court ruling of 12 May 1998
UK/Commission C-106/96 imposes the necessity for all budget lines entered in the budget to have a legal basis; it recalls the link between budget and legislation.
UK/Commission C-106/96 imposes the necessity for all budget lines entered in the budget to have a legal basis; it recalls the link between budget and legislation.
In its conclusions, the Court confirms the independence of the legislative and budgetary procedures and at the same time strengthens the link between the two although neither of the two should impose to the other.
In its conclusions, the Court confirms the independence of the legislative and budgetary procedures and at the same time strengthens the link between the two although neither of the two should impose to the other.
The Nice Treaty, which entered into force on in February 2003, has increased the scope of co-decision in several areas (freedom, justice and security, and external actions).
The Nice Treaty, which entered into force on in February 2003, has increased the scope of co-decision in several areas (freedom, justice and security, and external actions).
Over the next period, there will be additional programmes with multi-annual envelopes.
Over the next period, there will be additional programmes with multi-annual envelopes.
The Constitutional Treaty for Europe, initially due to enter into force in November 2006, incorporates the Financial Perspective into the Treaty (article I.55 and III.402), graving in stone the multi-annual character of EU spending.
The Constitutional Treaty for Europe, initially due to enter into force in November 2006, incorporates the Financial Perspective into the Treaty (article I.55 and III.402), graving in stone the multi-annual character of EU spending.
State of Play
State of Play
In accordance with article 26 of the Inter-institutional Agreement of 6 May 1999, the Commission presented fresh proposals for a new medium-term financial perspective in February 2004, followed by the related legislative proposals.
In accordance with article 26 of the Inter-institutional Agreement of 6 May 1999, the Commission presented fresh proposals for a new medium-term financial perspective in February 2004, followed by the related legislative proposals.
It should be recalled that most of the Community multi-annual programmes terminate at the end of 2006, which implies that 90% of the legislation with financial implications has to be renewed in the context of the new financial perspective.
It should be recalled that most of the Community multi-annual programmes terminate at the end of 2006, which implies that 90% of the legislation with financial implications has to be renewed in the context of the new financial perspective.
Legislative proposals have already been adopted by the Commission and submitted to the European Parliament and the Council for examination.
Legislative proposals have already been adopted by the Commission and submitted to the European Parliament and the Council for examination.
On 8 June 2005, the European Parliament adopted a negotiating position based on the report of the Temporary Committee on Policy Challenges and Budgetary Means of the Enlarged Union 2007-2013 (Böge report), in which it sets up its proposal for the global level of expenditure and its political priorities.
On 8 June 2005, the European Parliament adopted a negotiating position based on the report of the Temporary Committee on Policy Challenges and Budgetary Means of the Enlarged Union 2007-2013 (Böge report), in which it sets up its proposal for the global level of expenditure and its political priorities.
On 16-17 June 2005, the European Council did not succeed in agreeing on a common position based on the Luxembourg presidency compromise.
On 16-17 June 2005, the European Council did not succeed in agreeing on a common position based on the Luxembourg presidency compromise.
The sectoral committees have started to examine the legislative proposals.
The sectoral committees have started to examine the legislative proposals.
At this stage 17 have already been adopted.
At this stage 17 have already been adopted.
In order to facilitate the conclusion of the legislative authority on the new programmes and until an agreement is reached on the Financial Perspective, actions have been taken on the procedure at institutional level.
In order to facilitate the conclusion of the legislative authority on the new programmes and until an agreement is reached on the Financial Perspective, actions have been taken on the procedure at institutional level.
At the trialogue of 18 October, the institutions have agreed on a joint declaration "Guidelines for legislative proposals related to the 2007-2013 multi-annual financial framework".
At the trialogue of 18 October, the institutions have agreed on a joint declaration "Guidelines for legislative proposals related to the 2007-2013 multi-annual financial framework".
It allows the EP and Council to proceed to the legislative work pending an agreement on the IIA for the period 2007-2013 as follows:
It allows the EP and Council to proceed to the legislative work pending an agreement on the IIA for the period 2007-2013 as follows:
The EP and Council therefore undertake as follows:
The EP and Council therefore undertake as follows:
12. the EP will take forward its consideration of individual programmes and, endeavour to complete its first reading;
12. the EP will take forward its consideration of individual programmes and, endeavour to complete its first reading;
13. the Council will endeavour to reach partial political agreement on the proposal excluding the budget figures and articles related to financial provisions
13. the Council will endeavour to reach partial political agreement on the proposal excluding the budget figures and articles related to financial provisions
14. the two Institutions on the basis of their respective position will start, where appropriate, preliminary discussions on the legislative proposals, with the exception of the articles relating to the budget, financial statements, and other financial provisions in view of reaching a common understanding;
14. the two Institutions on the basis of their respective position will start, where appropriate, preliminary discussions on the legislative proposals, with the exception of the articles relating to the budget, financial statements, and other financial provisions in view of reaching a common understanding;
15. after agreement on the IIA, the EP and Council, on the basis of proposals from the Commission, will agree on the individual legislative proposals, including their financial envelopes, pending before the EP and Council and proceed to their final adoption.
15. after agreement on the IIA, the EP and Council, on the basis of proposals from the Commission, will agree on the individual legislative proposals, including their financial envelopes, pending before the EP and Council and proceed to their final adoption.
At its meeting of 27 October, the European Council took note of the "Five proposals to relaunch negotiations".
At its meeting of 27 October, the European Council took note of the "Five proposals to relaunch negotiations".
At the General Affairs Council of 7 November, the Presidency presented a document where it considers that the last compromise presented by the Luxembourg Presidency "continues to enjoy widespread support towards the agreement in December", although three key issues have to be deepened:
At the General Affairs Council of 7 November, the Presidency presented a document where it considers that the last compromise presented by the Luxembourg Presidency "continues to enjoy widespread support towards the agreement in December", although three key issues have to be deepened:
- the structure of EU spending, namely an earmarking from headings 1b and 2, a Globalisation Fund and heading 2
- the structure of EU spending, namely an earmarking from headings 1b and 2, a Globalisation Fund and heading 2
- modernising the budget notably setting up a timetable and scope for review
- modernising the budget notably setting up a timetable and scope for review
- own resources: proposals should be based on the principle of fair treatment of Member States of comparable levels of prosperity.
- own resources: proposals should be based on the principle of fair treatment of Member States of comparable levels of prosperity.
On 15 November, the Presidency foresees to make a new proposal including a table with figures in view of a discussion in Coreper and at the 21 November General Affairs Council.
On 15 November, the Presidency foresees to make a new proposal including a table with figures in view of a discussion in Coreper and at the 21 November General Affairs Council.
On 15/16 December , the Financial Perspective will be on the agenda of the European Council for a possible decision.
On 15/16 December , the Financial Perspective will be on the agenda of the European Council for a possible decision.
At EP level, the Conference of Presidents decided on 29 September that financial matters related to the legislative procedures "should be based on, and be compatible with, the figures and guidelines set out in the European Parliament's resolution on Policy Challenges and Budgetary Means of the enlarged Union 2007-2013 (adopted on 8 June 2005)".
At EP level, the Conference of Presidents decided on 29 September that financial matters related to the legislative procedures "should be based on, and be compatible with, the figures and guidelines set out in the European Parliament's resolution on Policy Challenges and Budgetary Means of the enlarged Union 2007-2013 (adopted on 8 June 2005)".
On 20 October 2005, the President of the Commission sent a letter to the President of the European Parliament, the President-in-Office of the Council and to the Heads of State setting out "some ideas to help launch the final phase of negotiations".
On 20 October 2005, the President of the Commission sent a letter to the President of the European Parliament, the President-in-Office of the Council and to the Heads of State setting out "some ideas to help launch the final phase of negotiations".
Legislation in absence of a Financial Perspective
Legislation in absence of a Financial Perspective
Back to the Treaty
Back to the Treaty
The EU budget has developed within a multi-annual framework since 1988.
The EU budget has developed within a multi-annual framework since 1988.
Part I of the Inter-institutional Agreement contains the table on Financial Perspective which is soft law compared to the EC Treaty (primary law).
Part I of the Inter-institutional Agreement contains the table on Financial Perspective which is soft law compared to the EC Treaty (primary law).
In absence of FP/IIA, the provisions of the Treaty (articles 270-273) apply with regard to the budgetary procedure.
In absence of FP/IIA, the provisions of the Treaty (articles 270-273) apply with regard to the budgetary procedure.
The absence of a Financial Perspective will occur if no agreement can be found either within Council or between EP and Council.
The absence of a Financial Perspective will occur if no agreement can be found either within Council or between EP and Council.
There can be no Financial Perspective without EP's agreement.
There can be no Financial Perspective without EP's agreement.
The rapporteur wishes to stress that no agreement between EP and Council on figures will be possible until there is an agreement on the IIA.
The rapporteur wishes to stress that no agreement between EP and Council on figures will be possible until there is an agreement on the IIA.
The present FP/IIA are in force until the end of 2006.
The present FP/IIA are in force until the end of 2006.
Article 26 of the IIA
Article 26 of the IIA
Before 1 July 2005, the Commission will present proposals for a new medium-term financial perspective.
Before 1 July 2005, the Commission will present proposals for a new medium-term financial perspective.
Should the two arms of the budgetary authority fail to agree on a new financial perspective and unless the existing financial perspective is expressly denounced by one of the parties to this Agreement, the ceilings for the last year covered by the existing financial perspective will be adjusted in accordance with paragraph 15 by applying to these amounts the average rate of increase observed over the preceding period, excluding any adjustments made to take account of enlargement of the Union.
Should the two arms of the budgetary authority fail to agree on a new financial perspective and unless the existing financial perspective is expressly denounced by one of the parties to this Agreement, the ceilings for the last year covered by the existing financial perspective will be adjusted in accordance with paragraph 15 by applying to these amounts the average rate of increase observed over the preceding period, excluding any adjustments made to take account of enlargement of the Union.
This rate of increase may not, however, exceed the rate of growth of Community GNP for the year concerned. provides for the prolongation of the existing Financial Perspective (see below) unless it is denounced by one of the parties:
This rate of increase may not, however, exceed the rate of growth of Community GNP for the year concerned. provides for the prolongation of the existing Financial Perspective (see below) unless it is denounced by one of the parties:
Estimation of the evolution of expenditures under art.
Estimation of the evolution of expenditures under art.
26 IIA (commitment appropriations)
26 IIA (commitment appropriations)
EU-GNI at 2004 prices
EU-GNI at 2004 prices
% estimation tot. budget over GNI (with CE)
% estimation tot. budget over GNI (with CE)
Non-compulsory expenditure (NCE)
Non-compulsory expenditure (NCE)
According to article 26:
According to article 26:
a. the use of this automatic mechanism over the years leads to a reduction of the NCE,
a. the use of this automatic mechanism over the years leads to a reduction of the NCE,
b. the structure of the current FP is not adequate to highlight the priorities identified by the Commission and shared by the Parliament (i.e. Lisbon strategy),
b. the structure of the current FP is not adequate to highlight the priorities identified by the Commission and shared by the Parliament (i.e. Lisbon strategy),
EP cannot use the appropriations of heading 7 (pre-accession),
EP cannot use the appropriations of heading 7 (pre-accession),
d. the starting point for the prolongation - FP for the year 2006 – is based on EU 25 while the FP for 2007 onwards will be for EU 27.
d. the starting point for the prolongation - FP for the year 2006 – is based on EU 25 while the FP for 2007 onwards will be for EU 27.
The rapporteur considers that this alternative is not acceptable as such unless the Council can indicate its openness to find ad hoc solutions to overcome the problems mentioned above.
The rapporteur considers that this alternative is not acceptable as such unless the Council can indicate its openness to find ad hoc solutions to overcome the problems mentioned above.
In respect of the procedure set down by the Treaty (art.
In respect of the procedure set down by the Treaty (art.
272), the non-compulsory expenditure (NCE) is established:
272), the non-compulsory expenditure (NCE) is established:
· by Parliament within the Maximum Rate of Increase (MRI) of non compulsory expenditure
– by Parliament within the Maximum Rate of Increase (MRI) of non compulsory expenditure
According to article 272,9 of the EC Treaty, the MRI results from the trend, in terms of volume of the gross national product within the Community, the average variation in the budgets of the Member States, and the trend of the costs of living during the preceding financial year. , established on an annual basis by the Commission according to macro-economic data.
According to article 272,9 of the EC Treaty, the MRI results from the trend, in terms of volume of the gross national product within the Community, the average variation in the budgets of the Member States, and the trend of the costs of living during the preceding financial year. , established on an annual basis by the Commission according to macro-economic data.
· by Parliament and Council that can jointly fix a new MRI to finance the budget.
– by Parliament and Council that can jointly fix a new MRI to finance the budget.
The Treaty scenarios based on an estimated MRI would be a more favourable option for the EP than the strict application of article 26 of the IIA.
The Treaty scenarios based on an estimated MRI would be a more favourable option for the EP than the strict application of article 26 of the IIA.
272 TUE (commitment appropriations)
272 TUE (commitment appropriations)
Based on Commission estimation of MRI and expenditure for Bulgaria and Romania over MRI
Based on Commission estimation of MRI and expenditure for Bulgaria and Romania over MRI
EUR mio. in 2004 prices
EUR mio. in 2004 prices
total NCE MRI+ BG/RO (commitments)
total NCE MRI+ BG/RO (commitments)
total NCE (payments)
total NCE (payments)
As provided by the Financial Regulation, the EU Budget can only be implemented on an existing legal basis, apart from some exceptions.
As provided by the Financial Regulation, the EU Budget can only be implemented on an existing legal basis, apart from some exceptions.
Pilot projects and preparatory actions according to article 49 of the Financial Regulation Should the legislative authority (Council or EP and Council) include a certain amount in the legal basis, the budgetary authority should endeavour not to depart from this decision, unless there are justified reasons.
Pilot projects and preparatory actions according to article 49 of the Financial Regulation Should the legislative authority (Council or EP and Council) include a certain amount in the legal basis, the budgetary authority should endeavour not to depart from this decision, unless there are justified reasons.
In practical terms the respect of the multi-annual envelopes has a limited effect in the annual budget (only the last year of implementation of a programme).
In practical terms the respect of the multi-annual envelopes has a limited effect in the annual budget (only the last year of implementation of a programme).
In fact, the budgetary authority can adjust the share of the envelope over the period, according to the annual priorities.
In fact, the budgetary authority can adjust the share of the envelope over the period, according to the annual priorities.
Multi-annual programmes and annual budgets
Multi-annual programmes and annual budgets
As set out above, legislation and budget have over the past 20 years progressively developed under a dependent multi-annual context.
As set out above, legislation and budget have over the past 20 years progressively developed under a dependent multi-annual context.
In his working document N° 4 presented to the Temporary Committee on Policy Challenges and Budgetary Means of the enlarged Union 2007-2013
In his working document N° 4 presented to the Temporary Committee on Policy Challenges and Budgetary Means of the enlarged Union 2007-2013
PE 349.852 - DT\547939 , the rapporteur had already pointed out the consequences for legislation should no agreement on the financial Perspectives 2007-2013 be reached (point 19): He noted that the multi-annual programming foreseen by the Commission would be possible, but with indicative amounts fixed by the legislative authority and confirmed in the annual budgetary procedure.
PE 349.852 - DT\547939 , the rapporteur had already pointed out the consequences for legislation should no agreement on the financial Perspectives 2007-2013 be reached (point 19): He noted that the multi-annual programming foreseen by the Commission would be possible, but with indicative amounts fixed by the legislative authority and confirmed in the annual budgetary procedure.