BUDGET COUNCIL: FIRST-READING STAMP OF APPROVAL FOR BUDGET 2001.

With Florence Parly, the French Budget Minister, in the chair, the Ministers acted more cautiously than COREPER (Committee of Member States' Permanent Representatives to the EU) by setting the commitment appropriations at 2.7% compared with the 2.8% COREPER recommended on 12 July. The most important thing for the Member States continues to be payments (which determine their inputs), which are up 3.5% for 2001 to produce a European Budget accounting for 1.05% of Community GNP. The Council Conclusions note that the increased level of spending is "much higher than the level the Member States authorised for their own national budgets and higher than the anticipated rate inflation in 2001 (+1.8%)". Germany suggested the increased level of payments, particularly for Category 1 (Agriculture) and Category 2 (Structural Actions) was excessive and voted against the year 2001 Draft Budget. Headed by Terence Wynn (PES, United Kingdom), and its general rapporteur for the 2001 Budget, Jutta Haug (PES, Germany), a delegation from the European Parliament warned, during the consultations prior to the Council meeting, that MEPs sought a higher level of overall spending.Western Balkans.Adopted in first reading by the Council, the Budget proposal reflects the priority given to the Western Balkans, with resources up 30% on the year 2000. Category 4 is up 5.3% in payment appropriations and down, 5.2% in commitment appropriations. The Euro 614 million the Council voted in for Balkans will be used to pay for all the anticipated needs, insofar as the Council thinks that Serbia is still not entitled to Community wherewithal, so spurns the Commission call for a 200 million increase by way of a reserve in anticipation of the downfall of Slobodan Milosevic's Government and the rapid provision of aid to a democratically-elected Government. The Council rules out any external needs being funded by a review of the financial perspective. The Commission recommends lopping 300 million off the Category 1a (farm market expenditure) ceiling. The European Parliament also rejected this idea. The Council agreed to a major redeployment of resources but claims it still reflects all priorities in the case of third countries. The 150 million cut in commitment appropriations is unlikely to jeopardise the MEDA programme, claim Ministers, as it has years of late payments to rely on. The Council's main concern now is improving the way the programme is managed. "This improvement will...