BUDGET: COMMISSION PROPOSES NEW SUPPLEMENTARY AND AMENDING BUDGET FOR 2001.

Euro 1.635 billion of the surplus left over from last year had already been accounted for in the 2001 Budget. Euro 2.075 billion will be used to finance the correction of the United Kingdom's rebate for the years 1997, 1999 and 2000. As a further Euro 350 million has been proposed to increase the payments for the Western Balkans aid programme the amount of Euro 7.5 billion will be given back to the Member States in the form of reductions of their contribution to the 2001 Budget. This will reduce the EU resources paid by member states in 2001 from Euro 90 972 billion to Euro 81 344 billion.Combining its rebate and normal surplus repayments, the United Kingdom will thus secure almost half of the Euro 9.627 billion saved. Budget Commissioner Michaele Schreyer is adamant this situation should not lead to a reopening of the debate on the rebate. The issue will be one of the key elements of the report on the functioning of the new own resources system - still awaiting ratification - in 2004. Mrs Schreyer also indicated that the surplus is not needed to cover additional spending in 2001 to deal with the foot and mouth crisis, despite the fact that David Byrne, her colleague responsible for consumer protection has already put the cost for the United Kingdom alone at between Euro 500 and 700 million, 60% of which will be covered by the Community Budget from the Emergency Veterinary Fund.The surplus is made up of...