BUDGET: PARLIAMENT PREPARES FOR CONSULTATION WITH COUNCIL ON 2004 BUDGET.

On heading 1 (agriculture spending), the Committee deplored the fact that the share of the total budget taken by compulsory expenditure on the Common Agricultural Policy (CAP) is increased from 40.2% in the 2003 budget to 42.7% in the PDB 2004, thereby going against Parliament's request for the overall proportion of non-compulsory expenditure in the budget to be increased. The Committee also urged the Commission to clarify the CAP mid-term review's budgetary impact on the EU general budget. The Committee also wants to create a special item for insurance schemes for farmers for emergencies (like foot and mouth disease, classical swine fever and avian influenza and similar diseases). Resources for the development of environmental indicators and for the promotion of quality schemes in agriculture are other additions being sought by the Committee.

In heading 2 (structural actions), one major consequence of the EU budget's change of nomenclature (now organised as "Activity-Based Budgeting" or ABB) is the creation of a section comprising all expenditure related to the EU's fisheries policy. MEPs will closely examine reductions made by the Commission in research and under the Structural Funds, but will also look into the need to raise payment appropriations for the decommissioning fund for fishing vessels (the final decision on the financing of the fund is yet to be made by Council).

In heading 3 (internal policies), MEPs are happy with the large increase for health and consumer...