2004 BUDGET: COUNCIL LIKELY TO BROADLY ENDORSE COMMISSION PROPOSALS.

PositionFunding plans for the European Union

The 2004 PDB for a twenty-five member EU anticipates a 12.6% increase in commitment appropriations and a 3.2% increase in payment appropriations (see European Report 2773 for further details). This rigour on the part of Commission clearly caught the Council's Budget Committee short, the Committee making modest cuts, reducing the two percentages to 12.3% and 2.7% respectively. A reading of the various declarations attached to the draft conclusions by national delegations clearly shows that the principal cuts affecting heading 1 (Agriculture), heading 2 (Structural actions) and heading 7 (pre-accession) are deemed provisional and may be reassessed through an Amending Budget.

Subject to alterations following a meeting with the European Parliament's Budgetary Control Committee, the Council should endorse decision on the following Budget headings:

- Heading 1 (Agriculture): an across-the-board cut of Euro 160 million in payment appropriations demanded in the PDB for market expenditure (with funds channelled towards rural development remaining unchanged), along with a declaration demanding an Amending Budget in the Autumn.

- Heading 2 (Structural actions): a linear reduction of Euro 138 million in payment appropriations demanded in the PDB, again accompanied by a declaration setting a date for an Amending Budget if appropriate. Euro 22 million in funding for the scrapping of vessels in the context of the Common Fisheries Policy is also struck out.

- Heading 3 (Internal policies): Approval of proposed funding for multi-annual programmes for the fifteen-member EU. Regarding proposed funding in the PDB for programmes extended to the twenty-five member Union (theoretically from May 1, 2004), the Council regards appropriation levels as being provisional. Certain lines not covering a multi-annual programme have been...

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