EU BUDGET: MINISTERS GIVE BROAD BACKING TO REVAMPED FOREIGN AFFAIRS BUDGET.

In July, the Commission tabled formal proposals for the new EU medium-term budget framework for 2007-13 known as the financial perspective. The old external relations heading would be renamed "the EU as a global player" and have six funding categories, or instruments. The six are:

- a pre-accession instrument (envisaged for Bulgaria, Romania, Croatia and Turkey)

- the European neighbourhood and partnership (for the EU neighbours who do not have the perspective of membership)

- development co-operation and economic partnership (for developing and other third countries)

- a stability instrument

- humanitarian aid

- macro-financial assistance.

The Dutch Presidency said most delegations had agreed with the proposal to reduce the number of instruments. Delegations agreed in general with the scope of the three geographic instruments for external relations although many did not agree with the Commissions proposal to integrate the European Development Fund (EDF) into the EU's General Budget. Member States contributions to the EDF are negotiated individually and not based on the system of own resources used to fund the EU Budget. Bringing it into the General Budget means several Member States, primarily Spain, would have to increase their contribution.

Many delegations commented that the new financing instruments for external relations would allow the Council adequate political control, although some speakers stressed the role to be played by Member States.

There were many Member States which supported the proposed scope of the "instrument for stability" although they insisted on clarifying the competences of the Commission and the Council.

Ministers were not asked, however, to comment on the total amount...