BUDGET: PARLIAMENT AND COUNCIL REACH DEAL ON 2003 BUDGET.

The budgetary conciliation meeting sought to reconcile the priorities of the Parliament and Council on heading 4 (External Actions), with the Member States refusing any use of the flexibility instrument. In short, the two branches of budgetary authority arrived at the following arrangement:

- a budget of Euro 42 million for the World Health Fund, with provision for a similar contribution to the European Development Fund, making a total of Euro 84 million.

- the frontloading of humanitarian aid for the horn of Africa up to Euro 55 million, under the 2002 budget, thanks to under implementation in the course of the current financial year.

- Euro 47.5 million for CFSP, a sum also guaranteeing the financing of the EU police mission in Bosnia Herzegovina.

It should be noted that an agreement of CFSP funds was only achieved through the adoption of a joint Declaration on practical procedures for the notification and involvement of the Parliament. The Council has henceforth pledged annually and before June 15 to transmit a document to Parliament on its major foreign policy priorities. In addition, in case of the adoption of CFSP common actions, provision is made for the Council to forward precise information to Parliament on budgetary implications, within five working days. Finally, in the context of the regular political dialogue, the Council Presidency is required to alert the President of the Parliament and the Presidents of the relevant Parliamentary Committees (Foreign Affairs and Budget) in good time, where common actions may have major financial implications.

The other outstanding dossiers at this stage of the preparation of the 2003 budget have also been successfully wound up.

Under heading 1(Agriculture), Parliament obtained a clearer designation for credits for the transport of live animals. The Council has accepted the division of the line for export rebates for live animals without agreeing to Parliament's demand for a reduction in funds for the sector. The two branches of budgetary authority invite the Commission to present an annual report on compliance with Community standards on the transport of cattle.

An agreement has been found on heading 2 (Structural Actions) regarding the restructuring of Spanish and Portuguese fishing fleets. Some Euro 15 million had already been found from the 2002 budget through use of the frontloading technique; the remaining Euro 12 million should be secured through the flexibility instrument. The Council...