REPORT on the guidelines for the 1998 budgetary procedure Section III - Commission

10 March 1997

Committee on Budgets
Rapporteur: Mr Stanislaw Tillich

At its meeting of 21 January 1997 the Committee on Budgets appointed Mr Tillich rapporteur for the 1998 budget, Section III - Commission.

At its meeting of 4 February 1997 it held an initial exchange of views on the guidelines for the 1998 budget (Section III - Commission) and decided to present a report pursuant to Article 1(2) of Annex IV to the Rules of Procedure.

At its meetings of 26 February and 10 March 1997 it considered the draft report.

At the latter meeting it adopted the motion for a resolution by 24 votes to 4 against with 1 abstention.

The following were present for the vote: Samland, chairman; Tillich, first vice-chairman and rapporteur; Willockx and Giansily, vice-chairmen; Bösch, Bourlanges, Christodoulou (for Bardong), Colom I Naval, Desama (for Dankert), Dührkop Dührkop, Elles, Fabra Valles, Fabre-Aubrespy, Garriga Polledo, Haug, Imaz San Miguel, Kellett-Bowman (for Böge), Krehl, Kuckelkorn (for Tomlinson), Le Gallou, Miranda, Pasty, Pimenta, Rübig (for McCartin), Tappin, Virrankoski, Waidelich, Wemheuer (for Trautmann) and Wynn.

The explanatory statement will be presented orally in plenary sitting.

The opinions of the Committee on Employment and Social Affairs, the Committee on Research, Technological Development and Energy and the Committee on the Environment, Public Health and Consumer Protection are attached.

The report was tabled on 10 March 1997.

The deadline for tabling amendments is 10 a.m. on Wednesday, 12 March 1997.

A MOTION FOR A RESOLUTION

Resolution on the guidelines for the 1998 budgetary procedure - Section III - Commission

The European Parliament,

- having regard to the current financial perspective adopted as part of the Interinstitutional Agreement of 29 October 1993[1],

- having regard to the ceiling on EU own resources fixed at the Edinburgh Summit in December 1992[2],

- having regard to the Court of Auditors' Annual Report concerning the financial year 1995[3],

- having regard to the report of the Committee on Budgets and the opinions of the Committee on Employment and Social Affairs, the Committee on Research, Technological Development and Energy and the Committee on the Environment, Public Health and Consumer Protection (A4-0080/97),

A. whereas all Institutions are duty-bound to make effective, efficient and transparent use of Community funding,

B. whereas information policy measures must be adequately funded and efficiently implemented by Commission and Parliament departments jointly,

C. whereas the 1998 budget must be viewed in the context of the outcome of the Intergovernmental Conference in June 1997 in Amsterdam, and therefore provision must be made for adequate margins under the individual headings,

General comments

Reaffirms its intention to adopt a budget for 1998 which is more commensurate with citizens' requirements, and signalling their paramount need for increasing employment in conditions of financial and monetary stability, and to continue to support the Member States in their efforts to meet the convergence criteria laid down in the Treaty of Maastricht for completion of economic and monetary union and for the achievement of economic and social cohesion;

Calls for multiplier projects which have a real EU-added value to be maintained; awaits the Commission's proposal to revise or delete certain actions in order to avoid duplications and to stress Union priorities; considers that this approach, aided by a thorough political and financial analysis of programmes and activities requiring Community funding, should allow European policies to be developed;

Considers the Council's alleged position on the size of the 1998 budget as unrealistic but could agree with the Council on an overall rate of increase of the budget, on condition that the Council:

(a) is prepared to resolve outstanding issues concerning relations between Parliament and the Council, such as:

- a reserve under the agricultural guideline- the problem of the legal basis

- institutional aspects of budget headings for the second and third pillars

- the classification of expenditure

in a manner acceptable to Parliament;

(b) within the IGC, comes to an acceptable solution on Parliament's requests for modifications to the Treaties' budgetary provisions without reducing Parliament's existing budgetary powers;

(c) maintains the commitments established in Article 12 of the Framework Regulation on the Structural Funds;

Expects the Council now to open a genuine dialogue with Parliament, of a kind that failed to materialize during the 1997 budget procedure, and calls on the Ecofin Council in particular to examine the financial guidelines for 1998 and to play a greater role in future budget procedures;

Takes the view that the 1998 budget, which must enhance budgetary transparency and administrative efficiency (SEM 2000), must take into account the following priorities in particular:

(a) combating of unemployment

(b) exploiting the potential of SMEs in order to create viable jobs;

(c) initiating of the process of preparing for enlargement;

(d) encouraging youth, education and cultural programmes;

Stresses that an agreement on legal bases is essential if measures which have no legal basis at present or are pending approval in the Council are to continue to receive funding and significant new measures are to be undertaken with the consent of the two arms of the budgetary authority;

Following the decision of the Court of Justice (Case No 41/95) and the agreement of 21 December 1995, recalls that Parliament and Council still have to find a workable agreement on the classification issue each year; is convinced that the ad hoc procedure is the appropriate framework in which to come to such an agreement, though believes that a genuine solution to classification problems will not be possible until the Treaties have been comprehensively revised, involving a fresh Institutional balance and more active involvement of Parliament in the legislative process;

Calls on the Commission to submit a report summarizing the action taken in both operational and staff terms on the greening of the budget provided for in the 1996 and 1997 budgets;

Category 1 - Agriculture

Calls, with regard to the ad hoc procedure, both for improved cooperation with the Council and Commission and for enhanced cooperation within the European Parliament, with the objective of adopting a budget in December based on the most up-to-date forecasts so as to reduce changes during the financial year to a minimum;

Considers it essential that, if Member States wish to have a rigorous budget again for 1998, the savings come not only from an improvement in the forecasts, but also from modification to regulations, thus controlling expenditure more effectively; points out that the agricultural price package and income aid has important budgetary consequences; reminds the Commission and the Council of the need to respect the appropriations as voted in the budget and calls upon the Commission to take the appropriate measures pursuant to the Council's decision of 31 October 1994 on budgetary discipline;

Calls on the Commission, with a view to the greening of agriculture, to provide for greater incorporation of environmental requirements into the CAP;

Category 2 - Structural actions

Notes that the financial perspective for Category 2 provides for a binding increase in commitments of just under 8% for 1998; considers that Structural Funds contribute significantly to strengthening the economy of beneficiary regions and that the Cohesion Fund helps the beneficiary Member States to meet the Maastricht criteria;

Affirms the need to continue the structural policy as indicated at the Edinburgh European Council, but expresses its concern about the percentage of payments made in comparison to commitments available in this category and asks the Commission, with regard to the review of the Structural Fund regulations due to take place before 31 December 1999, to carry out an in-depth study and submit proposals aimed at rationalizing and improving the effectiveness of the funds;

Calls on the Commission to involve the EAGGF Guidance Section (B2-180) in this process to an even greater extent, respecting the European environmental standards, and to make expenditure conditional on environmental impact;

Category 3 - Internal policies

Calls on the Commission and Council to promote cultural programmes and educational and vocational training activities at a European level; recognizes a need to develop measures for young people, particularly by means of attractive programmes adopted under the codecision procedure; welcomes the recent proposal introduced by the Commission for a European voluntary service after the two-year pilot phase initiated during the 1996 budgetary procedure;

Takes the view that the new information policy requested by Parliament has begun to develop through the work of the steering committees; calls on the Commission to pursue this form of interinstitutional cooperation not only for the information campaigns but also for the general information actions; nevertheless considers that progress should be made through interinstitutional cooperation, in order to achieve the objective of a single coherent information policy of the European Institutions in all Member States;

Continues to reject the Council's negative approach on social policy; is determined to finance preparatory actions or pilot projects with respect to social exclusion, the elderly, the disabled and the family and to encourage the chances for reintegration into civil society; urges that a solution be found to safeguard the activities and networks of NGOs organized at European level;

Points out that the appropriations for social measures, including those for implementing equal opportunities, have not in previous financial years been sufficiently consistent with the Union statements committing itself to the fight against unemployment; therefore asks the Commission to develop the pilot project for the promotion of employment through the "third system" that was adopted in the 1997 budget;

Stresses the importance that the European budget respond to the new needs of European citizens and of its practical promotion of job creation, both directly and through support to SMEs; considers, in particular, that European SME policy needs to be better coordinated, within the Commission services, in order to increase effectiveness;

Calls on the Commission to verify that all the Agencies have taken the necessary measures to introduce the changes required in the report presented on the harmonization of the financial regulations, in line with the requirements of Article 142 of the Financial Regulation, and urges the Commission to present modification proposals accordingly; stresses the urgency of presenting the report promised by Commissioner Bangemann on the status of the fees collected by some Agencies and their relation to the general revenues of the Union; reminds the Commission of the budgetary authority's determination that the funding regulations of all new or additional agencies should be in line with the Union model, of which CEDEFOP and the Foundation for the Improvement of Living and Working Conditions may be considered examples;

Takes the view that financing of the trans-European networks is necessary and that, apart from the essential basic road links for outlying regions of the Community, it is expedient increasingly to focus on high-tech satellite networks, with their considerable potential for creating jobs on the one hand and, on the other, for not losing touch with the global leading players;

Notes that thanks to the pressure exerted by Parliament during the 1997 budget procedure the Commission and the Council are finally presenting and adopting multiannual programmes in the field of justice and internal affairs as recommended by the European Parliament; regrets, however, that it was not consulted by the Council on the programmes already adopted and expects the Council to change this procedure and to consult it before further programmes are adopted;

Expresses its willingness to contribute actively to the initiation, at a wholly European level, of a comprehensive policy to fight organized crime in all its forms, in particular through a harmonized policy to combat money laundering and international fraud and a coordinated policy to combat sexual exploitation of children, as well as through better cooperation between the police and judicial authorities; points out that this comprehensive approach at European level will provide the general framework for the Community's campaign to protect its financial interests using the instruments provided by the first pillar of the TEU;

Expresses its regrets about the Commission's timid proposal and the Council's negative approach concerning the 4th framework programme of EC research, technological development and demonstration; reminds them of the genuine need for such financing and considers that an amount of at least ECU 200 m is necessary for covering the minimum needs;

Considers Community promotion of research and technological development as a priority in order to contribute to the competitiveness of European industry and to the creation of employment, growth and sustainable development; considers adequately financed Community actions to be necessary in the field of energy, especially with regard to energy efficiency and renewable energies, in order to help fulfil the political obligations undertaken by the Community in Rio in 1992 and in Berlin in 1994;

Category 4 - External actions

Emphasizes that the efforts made to assist countries close to the Union must not lead to any further reductions, in real terms, of appropriations to the least developed countries; recalls, in this context, Parliament's long-standing commitment to partnership with developing countries both through the instruments of the ACP-EU Convention and through cooperation policies actually financed through the EU budget; emphasizes that it will remain vigilant concerning the quality of the EU aid effort, and as regards the efficiency of aid management;

Recalls its decision of 26 October 1995[4] to submit the three major programmes PHARE, TACIS and MEDA to an interim evaluation by 30 June 1997 in order to decide on appropriations after 1997; considers that the objectives as regards PHARE and TACIS should be reassessed in the light of Parliament's criticisms and the disappointing results so far obtained, bearing in mind the need to pay particular attention to the social consequences of structural adjustment which are currently neglected, and reserves the right to make more specific proposals in this respect; expresses its great concern at the growing volume of commitments awaiting contracts, which already account for more than ECU 3 bn, in the PHARE and TACIS programmes; asks the Commission to present detailed information on all financing available to PHARE, TACIS and MEDA countries or to organizations there in the rest of the budget, outside Category 4;

Underlines the need for a pre-accession instrument which, for the applicant countries, whilst complying with the Financial Perspective and the Interinstitutional Agreement in force, should:

- be based on the findings of the interim evaluation requested;

- take account of the different needs of the applicant countries;

- be concentrated on clearly defined projects;

- avoid duplication with other Community funding;

- guarantee the requisite conditions for implementing and monitoring expenditure;

Recalls the decision of the budgetary authority to create the facility to recruit external staff with operating appropriations, with the aim of improving the implementation and monitoring of the programmes; as indicated in the remarks accompanying the 1997 budget lines, instructs the Commission to present detailed information on the use of such resources, in order to evaluate the appropriateness of continuing this approach;

Recalls the terms of its resolution[5] on the EU-Latin American partnership and recognizes the need to increase the appropriations devoted to this area;

With regard to the former Yugoslavia, calls on the Commission and the local authorities to enable all citizens to help to rebuild the country and finally to step up measures such as mine clearance and housing construction, thereby creating the necessary conditions for the voluntary return of war refugees; invites the Commission to provide the budgetary authority with all appropriate information about the financial situation of the Donors' Conference for BosniaHerzegovina, the Union currently being the major contributor, so that an accurate account can be provided systematically concerning the use of European citizens' contributions;

Recognizes the significant and independent contribution made by NGOs in development policy and external actions; looks forward to receiving the assessment report on Community NGO participation by May 1997; considers that there is a need for an evaluation of the effectiveness of Community food aid and humanitarian aid policy;

Believes that European cooperation under the Common Foreign and Security Policy should be strengthened; considers it essential that all joint decisions be funded adequately, so as to create the conditions for the actions to succeed; nevertheless invites the Council and the Commission to agree on minimum requirements for the presentation of a financial statement with each draft decision in order to speed up the appropriate budgetary authority decisions;

Category 5

Notes that, in 1998, there will probably be ECU 4 541 m available for this heading, voices its concern at the trend in the pensions and early retirement measures to be financed from the budget and reiterates its call on the Commission to submit by the middle of the year proposals to reorganize the pension scheme on a funded basis;

Welcomes the Commission's intention to take positive measures for staff redeployment; calls for a re-evaluation, once it receives the expected report on the matter, of the need to complete the conversion of appropriations into posts (TCE) policy on the basis of the 1992 screening;

Points out that before the first reading of the 1998 draft budget the European schools are to submit a report on a new funding and development structure covering, in particular, the following aspects: the Union's financial contribution taking account of the overall trend in Category 5; a cost/benefit analysis of expanding the schools with a view to future enlargements; the joint financial liability of the Member States in relation to national rules on the assignment of teaching staff and other employees;

During the course of the 1998 procedure, expects the Commission to present a report on the progress made on restructuring the delegations service, in accordance with the principles of a stronger presence in areas where the financial commitments of the EU are higher, of concentration and regionalization of delegations, and of presentation of a plan for the establishment of a genuine European Foreign Service;

To make administrative management more transparent, invites the Commission to:

* indicate in its PDB the practical measures taken to prevent a recurrence in the future of a particularly high concentration of commitment operations at the end of the financial year in the case of cooperation with non-member countries, a situation that is not conducive to sound management as pointed out in the SEM 2000 document SEM 2000;

* provide the departmental restructuring information as called for when the 1997 budget was adopted, in particular with regard to the UCLAF;

* provide a statement of its reasons for its request for appropriations for mission expenses broken down by sector of activity, including research, and the cost of professional training;

* indicate the steps which have been taken to ensure that the buildings occupied by the institutions of the Union in the Member States are exempt from all property taxes, further to the conclusions of the report of the Court of Auditors;

* illustrate the measures taken with regard to physical inventory, including offices opened in the Member States, arrangements for the management of property-related contracts, and buildings forming part of its accommodation stock;

*

* *

Instructs its President to forward this resolution to the Council and Commission and the other institutions and satellite bodies of the Union.

  • [1] ()OJ C 331, 7.12.1993, revised to take account of enlargement by the agreement of 29.11.1994 (OJ C 395, 31.12.1994)
  • [2] ()OJ C 331, 7.12.1993
  • [3] ()OJ C 340, 12.11.1996
  • [4] ()OJ C 308, 20.11.1995, pp. 116, paragraph 33.
  • [5] ()Resolution on the Commission communication to Parliament and Council on European Union - Latin America - current status and prospects for strengthening its partnership 1996-2000 (COM(95)0495 - C4-0489/95) (Minutes of the sitting of 16 January 1997, PE 225.829)

OPINION

for the Committee on Budgets

on Parliament's guidelines for the 1998 budgetary procedure

Committee on Employment and Social Affairs

Letter from the committee chairman to Mr Detlev SAMLAND, Chairman of the Committee on Budgets

Brussels, 28 February 1997

Subject: Parliament's guidelines for the 1998 budgetary procedure

Dear Mr Samland,

At its meeting of 26/27 February 1997 the Committee on Employment and Social Affairs held a first exchange of views on the forthcoming adoption of Parliament's guidelines for the 1998 budgetary procedure.

The committee heard from its rapporteur, Bartho PRONK, that there is likely to be a decrease in real terms for expenditure outside category 2. It also learnt that the Commission has confirmed expenditure on Transeuropean Networks, Research and SMEs as its main priorities under category 3[1] . The committee could only express its disappointment that social policy expenditure did not figure among these priorities but resolved to ensure that such expenditure was maintained at a level consistent with the requirement of achieving Community objectives in this field.

In the light of the above the committee adopted the following conclusions unanimously[2]:

The Committee

with respect to structural policies

1. Is pleased with the improvement in utilization rates achieved by the ESF in 1996 and believes that this demonstrates that overbudgeting and underutilization are a consequence of the absence of adequate forecasting and financial planning mechanisms between the Commission and national authorities. Urges DGV to continue to develop these mechanisms during 1997.

2. Recalls, in view of the forthcoming debate on the future of the structural funds, the strategic importance of objective 3, particularly its actions in favour of groups at risk of exclusion from the labour market, for the realization of the social dimension of the European Union.

with respect to internal policies

3. Underlines the importance it attaches to the employment and social dimension of the European Union and the extent to which Community funding in the social field contributes to its realization; considers, therefore, as essential that the activities financed by the Union across the whole range of social policy should continue to be properly resourced.

4. Urges the Commission to implement rapidly the pilot project on employment in the third sector launched by the European Parliament and assess, in the medium term, the advisability of Community action in this field;

5. Calls in particular for an increase in funding for the Leonardo and Socrates programmes in order to be able to finance the new policy objectives identified in the White Paper on Education and Training and Parliament's report on the same subject.[3]

6. Reiterates its demand that the social dialogue, which is both an objective and an instrument of European social policy, be funded at an adequate level to allow it to function effectively, with particular reference to be paid to supporting actions not covered by Community instruments in this field.

7. Urges, given the current legal uncertainties, that a solution be found to safeguard the activities and networks of NGOs organized at the European level since NGOs make a vital contribution to the development of European social policy not least with respect to social exclusion, the elderly, the disabled and the family.

8. Supports the Commission in the process of setting up a permanent dialogue with NGOs representing civil society.

I hope your committee will take the above conclusions duly into consideration when it comes to adopt its final report.

Yours sincerely,

(sgd) Stephen HUGHES

  • [1] ()Commission's Conclusions of 29 January 1997
  • [2] ()The following were present for the vote: Hughes, chairman; Menrad and Ojala, vice-chairmen; Andersson, Bannasar Tous (for Chanterie), Boogerd-Quaak, Cabezón Alonso, Carniti, Carlotti (for Blak), Castagnetti, Correia, Eriksson, Ettl, Ghilardotti (for Jöns), Hernandez Mollar, Mann, McMahon, Megahy (for Ruffolo), Morris, Peter, Pronk, Schiedermeier, Schörling, Sornosa Martínez, Theonas, van Velzen, Weiler.
  • [3] ()COM(95)590 final and A4-0000/97

OPINION

(Rule 147)

for the Committee on Budgets

on the guidelines for the budgetary procedure 1998

Committee on Research, Technological Development and Energy

Letter from the committee chairman, Mr Scapagnini, and the rapporteur, Mrs McNally, to Mr Samland, chairman of the Committee on Budgets

Brussels, 27 February 1997

Dear Mr Samland,

At its meeting of 27 February 1997 the Committee on Research, Technological Development and Energy discussed the priorities for the 1998 budgetary procedure[1].

1. Research and technological development

At the present time the committee is preparing its response to the common position of the Council on the refinancing of the 4th framework programme. The Council proposes an increase of only 100 MECU, a marginal amount compared with the initial proposal of the Commission of 700 MECU. This latter amount which would have been in line with the results of the codecision procedure on the 4th framework programme in 1994.

It is true that the amount deemed necessary for refinancing could not be maintained following the refusal of the Council (ECOFIN) to revise the financial perspective. Nevertheless the amount fixed in the common position is disappointing, because it disregards the financial possibilities provided by Parliament in the 1997 budgetary procedure.

With regard to the importance of RTD for the competitiveness of European industry and the need for sufficient funds for European research on priority themes like BSE, Parliament has put an additional total amount of 100 MECU in the reserve for RTD in the 1997 budget, recognising the need for another 100 MECU for RTD in 1998. This operation was very difficult given the budgetary restraints and the limits of the existing financial perspective. The committee therefore takes this opportunity to thank the Committee on Budgets for its support for RTD in the 1997 budgetary procedure.

The amount necessary for RTD in 1998 depends on the outcome of the negotiations with the Council on the refinancing of the 4th framework programme. These will hopefully come to an end before August 1997. In its recommendation for the 2nd reading on the refinancing of the 4th framework programme our committee will probably propose an increase of at least 200 MECU. Consequently the 1998 budget should foresee an amount for RTD which reflects the overall amount of the revised framework programme for the period 1995 to 1998.

2. Energy

The situation in the energy sector is serious. It seems that the Commission and the Council are trying to reduce continuously the budget for Community programmes (e.g. SAVE II, SYNERGY) despite the political obligations of the Community on climate change undertaken in Rio and Berlin. We recall that in its 1997 draft budget the Council reduced the Commission's preliminary draft budget from 42,5 MECU to 13,9 MECU.

In its decision on SAVE II, the only Community action for reducing the greenhouse effect, the Council introduced a reference amount of only 45 MECU (compared with 150 MECU foreseen by the Commission). Apparently Commissioner Liikanen wants to incorporate this decision of the Council into the 1998 budget by reducing drastically the amount for SAVE II. This attitude is not only shortsighted in view of the increasing problems caused by the greenhouse effect, it also disregards the clearly expressed priorities of the budgetary authority.

Another problem concerns the programme SYNERGY (Community actions with regard to cooperation with third countries in the field of energy). This programme has still not yet been adopted and the Parliament has now to deal with a modified proposal. The lack of a legal base led to a reduced budget in 1997 and the disagreement in Council could jeopardize this programme which is important especially in view of the Union's cooperation with Eastern Europe. The "lack of legal base" problem is particularly acute in the energy sector, where only SAVE II and ALTENER have a legal base.

Furthermore the Commission implements the budget lines without a legal base in an arbitrary way. Whereas SYNERGY or "transport of radioactive material" or "observation of energy markets" have been implemented nearly 100% in 1996, the Commission has blocked the implementation of pilot projects in the field of renewable energies, energy efficiency and clean coal technology.

It is therefore urgent to find a solution for this problem in order to prevent the continuous reduction - and ultimately the disappearance - of Community actions in the field of energy.

3. Conclusions

The resolution on the budgetary guidelines for 1998 should include the following paragraphs:

- considers Community promotion of research and technological development as a priority in order to contribute to the competitiveness of European industry and to the creation of employment, growth and sustainable development; calls on the Council to take into account - in addition to the amount foreseen in the common position on the revision of the 4th framework programme on RTD - the budgetary possibilities which have been created by the Parliament in the 1997 budget;

- considers adequately financed Community actions to be necessary in the field of energy, especially with regard to energy efficiency and renewable energies, in order to fulfil the political obligations undertaken by the Community in Rio 1992 and in Berlin 1994;

Yours sincerely,

E. McNally U. Scapagnini

3 March 1997

  • [1] () The following took part in the vote: Quisthoudt-Rowohl, acting chairman; Adam, vice-chairman; McNally, draftsman; Camisón Asensio (for Argyros), Flemming (for Ferber), de Gaulle, Izquierdo Collado, Marinucci (for Desama), Matikainen-Kallström, Plooij-van Gorsel, Stockmann and Tannert.

OPINION

(Rule 147)

for the Committee on Budgets

on the guidelines for the 1998 budget procedure (Tillich report)

Committee on the Environment, Public Health and Consumer Protection

Draftsman: Mr Karl-Heinz Florenz

PROCEDURE

At its meeting of 22 January 1997 the Committee on the Environment, Public Health and Consumer Protection appointed Mr Karl-Heinz Florenz draftsman.

It considered the draft opinion at its meeting of 26 February 1997.

At this meeting it adopted the following conclusions unanimously.

The following took part in the vote: Dybkjær, acting chairman; Lannoye, vice-chairman; Florenz, draftsman; Bébéar, Blokland, Bowe, Corbett (for White), Díez de Rivera Icaza, Flemming, González Álvarez, Graenitz, Grossetête, Needle and Schleicher.

CONCLUSIONS

The Committee on the Environment, Public Health and Consumer Protection calls on the Committee on Budgets, as the committee responsible, to incorporate the following amendments in its report:

Amendment 1

Paragraph 1

1. Calls on the Commission, in its preliminary draft budget for 1998, to take account of the provision laid down in the last sentence of the first subparagraph of Article 130r(2) ('Environmental protection requirements must be integrated into the definition and implementation of other Community policies') and to give that provision practical form, particularly in the agricultural sphere;

Amendment 2

Paragraph 2

2. Calls on the Commission to keep Parliament regularly informed of how it has put the environment-related remarks against the budget headings dealing with the Structural Funds and the Cohesion Fund into practice and about Commission activities to implement the provisions of budget Item B2-1600 (Implementation, monitoring and assessment of Community support frameworks and single programming documents for the programmes and projects from the Structural Funds, the Community Initiatives and the Cohesion Fund);

Amendment 3

Paragraph 3

3. Calls on the Commission to earmark the appropriations needed so that the Product Quality Control and Audit Office proposed by the President of the Commission can be brought into operation as from 1 January 1998;