BUDGET: EUROPEAN PARLIAMENT ADOPTS FIRST ANNUAL BUDGET FOR 25-NATION EU.

"The financial resources for a wider Europe are now guaranteed. The European priorities have been observed. We have extra money to bolster the Lisbon Strategy, promote freedom, peace and justice, to provide citizens with better information and to make progress in the debate about the future of the EU", said Budget Commissioner Dalia Grybauskaite after learning the outcome of vote. She said European citizens were the main ones to benefit from the European Parliament's vote, as it would help fund more European policies that have a meaningful impact on their lives. She cited the example of the Galileo satellite navigation project, which is expected to generate more than 150,000 jobs in Europe and the Erasmus programme on student mobility. And the Parliament's rapporteur, Salvador Garriga Polledo (EPP-ED, Spain) said it was an ambitious but realistic Budget.

Farm spending.

2005 is the first year where the reform of the Common Agricultural Policy agreed last year will have a major financial impact. The budget for this policy involves Euro 49.7 billion in commitments, up 10.2%. Two pilot projects, which the European Parliament regards as of key concern, will be continued in the 2005 Budget: one focuses on quality promotion, the other relates to a financing model incorporating the risks of disease outbreaks in cattle.

Structural measures.

Regional policy takes account of the catching-up needed in the wider Europe. Commitment appropriations for structural measures total Euro 42.4 billion. 45% of the Cohesion Fund is earmarked for the 10 new Member States. Should there not be enough money to cover spending on agriculture and structural measures, the Commission will propose an Amending Budget towards the middle of next year.

The PEACE II programme, which aims to support the Northern Ireland peace process, has been extended until 2006 with a total amount of Euro 108 million, 50 million of which is for the 2005 budget year.

Internal policies.

Combating...