BUDGET: COMMISSION CALLS FOR UNSPENT FUNDS TO BE CARRIED OVER.

• Position: Brief Article

The European Commission is recommending carrying various financial allocations for rural development and official publications over from 2001 to this year's Budget. Although money that has not been used up by the end of a financial year is generally cancelled, under the budget rules it can be carried over to the next financial year (and solely that year) when funding in the relevant budget lines cannot cover the needs. Carry-over proposals may be made only in exceptional circumstances, to cope with pressing needs. The Council is required to consult with the European Parliament and act by a qualified majority on the basis on carry-over requests linked to items of expenditure resulting from the Treaties or acts adopted in pursuance thereof.The Commission's present proposals apply to Euro 130 million worth of rural development funds (out of a total of Euro 4.495 billion earmarked for 2001) which were not taken up. This underspend chiefly applies to farm investment schemes, young farmers' set-up schemes, processing and marketing farm produce...