2001 PRELIMINARY DRAFT BUDGET: ROMANO PRODI CONVINCES TEAM TO ACCEPT STRICT BUDGET DISCIPLINE.

In prior consultation with the Directorates-General, staff requirements were put at 800 officials. Heading 5 (Administration) of Agenda 2000 provides for the recruitment of 1,000 officials (all categories) over the period 2000-2006. This suggests the requests submitted by certain services are not realistic, although a number of Directorate Generals, such as the Enlargement DG and the Justice/Home Affairs DG believe they have a right to expect a boost, given their commitment in the case of the former to conduct accession negotiations and in the case of the latter to implement the legislative programme outlined at the Tampere Summit in October 1999 concerning an Area of Freedom, Security and Justice (see European Report no2444 for further details). Their demands were backed up by the relevant Commissioners, G?nter Verheugen and Antonio Vitorino, and supported by other Commissioners also anxious to meet their obligations, notably Michel Barnier, responsible for financial control. Romano Prodi has however insisted that all should make do with the on-going redeployment - 600 officials - for which a methodology should be settled on February 23. Neil Kinnock has echoed this line, recalling that a general assessment of human resources is expected for September in the context of internal administrative reform (see separate article in this Section), Budget Commissioner Michaele Schreyer, arguing that this will provide an appropriate opportunity to adjust staff requirements for 2001 on the occasion of the traditional autumn letter of amendment.The other malcontent in respect of the PDB 2001 currently being drafted is Agriculture Commissioner Franz Fischler, forced to give up Euro 400 million, including 300 million that will simply be cut from the EAGGF-Guarantee and transferred to the Stability Pact for South-East Europe (see separate article in Section IV). This transfer will be effected through a limited revision of the FP, requiring Chris Patten to draft a compelling financial dossier in justification. Last year, Budgetary procedure for 2000 was marked by a demand for Euro 500 million, finally pruned by the Council and Parliament to 360 million, for reconstruction in Kosovo (see European Report No 2460 for further details). In December 1999, the Commission was still emphasising an urgent need for Euro 100 million for March 2000, yet at the end of February, only some twenty million has been committed. The request for a Budget extension for Heading...