REPORT on Draft amending budget No 6/2006 of the European Union for the financial year 2006

    4.12.2006 - (15635/2006) – C6‑0441/2006 – 2006/2265(BUD)) - *

    Section III – Commission
    Committee on Budgets
    Rapporteur: Giovanni Pittella

    Procedure : 2006/2265(BUD)
    Document stages in plenary
    Document selected :  
    A6-0444/2006

    MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

    on Draft amending budget No 6/2006 of the European Union for the financial year 2006, Section III – Commission

    (15635/2006 – C6‑0441/2006 – 2006/2265(BUD))

    The European Parliament,

    –   having regard to the Treaty establishing the European Community, and in particular Article 272(4), penultimate subparagraph, thereof,

    –   having regard to the Treaty establishing the European Atomic Energy Community, and in particular Article 177 thereof,

    –   having regard to Council Regulation (EC, Euratom) No 1605/2002 of 27 June 2002 on the Financial Regulation applicable to the general budget of the European Communities[1], and in particular Articles 37 and 38 thereof,

    –   having regard to the general budget of the European Union for the financial year 2006, as finally adopted on 15 December 2005[2],

    –   having regard to the Interinstitutional Agreement of 6 May 1999 between the European Parliament, the Council and the Commission on budgetary discipline and improvement of the budgetary procedure[3],

    –   having regard to Preliminary draft amending budget No 6/2006 of the European Union for the financial year 2006, which the Commission presented on 31 October 2006 (SEC(2006)1410),

    –   having regard to Draft amending budget No 6/2006, which the Council established on 30 November 2006 (15635/2006 – C6‑0441/2006),

    –   having regard to Rule 69 of and Annex IV to its Rules of Procedure,

    –   having regard to the report of the Committee on Budgets (A6‑0444/2006),

    A. whereas Draft amending budget No 6/2006 aims at budgeting an increase in the forecast of revenue and a decrease in payment appropriations in the budget lines for Headings 1, 2 and 7, as well as modifying the remarks of budget Article 1 1 1 concerning sugar storage and of Article 13 03 08,

    B.  whereas the increase in the forecast of revenue of EUR 2 667 million and the decrease in payment appropriations of EUR 4 706 million are quite substantial,

    C. whereas an adoption of Amending Budget No 6/2006 will thus result in the Member States' contributions for 2006 decreasing by a total of EUR 7 373 million,

    D. whereas the regular and systematic underestimation of revenue with all its effects should be considered as an issue deserving further scrutiny,

    E.  whereas the low level of implementation of payments that were adopted in the annual budgetary procedure remains a constant cause for concern,

    F.  whereas the two arms of the budgetary authority have come to an agreement on the Budget for 2007, including the level of payments,

    G. whereas Amending Budget No 6/2006, due to its effects on the level of payments in the Budget for 2007, has been included in this agreement,

    1.  Reminds the Commission of its responsibility to do its utmost to implement payments as adopted by the budgetary authority within the framework of the annual budgetary procedure;

    2.  Has decided to accept Council's Draft Amending Budget unamended;

    3.  Instructs its President to forward this resolution to the Council and Commission.

    • [1]  OJ L 248, 16.9.2002, p. 1.
    • [2]  OJ L 78, 15.3.2006.
    • [3]  OJ C 172, 18.6.1999, p. 1. Agreement as last amended by Decision 2005/708/EC of the European Parliament and of the Council (OJ L 269, 14.10.2005, p. 24).

    EXPLANATORY STATEMENT

    Preliminary Draft Amending Budget

    On 31 October, the Commission presented Preliminary Draft Amending Budget (PDAB) No 6 for the year 2006, and on 17 November, an Amending Letter to it, aiming at

    1.  budgeting a substantial increase in the forecast of revenue of EUR 2 667 million

    2.  decreasing payment appropriations in budget lines for Heading 1, 2 and 7 by EUR 4 706 million

    3.  proposing the modification of the remarks of budget article 1 1 1 concerning the sugar storage, as well as of article 13 03 08 – European Development Fund (ERDF), Technical assistance and innovative measures.

    Assessment by the rapporteur

    The increase in the forecast of revenue (see point 1 above) is the result of new updates and means that the Member States can reduce their contributions to the 2006 budget accordingly, i.e. by EUR 2 667 million. If this amount is added to the straight forward decrease in payment appropriations of EUR 4 706 million (see point 2 above), Member States' contributions for 2006 would decrease by a total of EUR 7 373 million.

    After his first evaluation of the Commission's proposal, your rapporteur came to the conclusion that at least part of the payments not implemented in 2006 (i.e. a sum of nearly EUR 5 billion) would, most likely, have to be served in 2007. This is why your rapporteur did not feel to be in a position to treat this Amending Budget as an isolated matter within the framework of Budget 2006. For him it had to be taken into account when setting the level of payments for 2007.

    Consequently, Amending Budget No 6 was put on the agenda of the Conciliation for Budget 2007 in order to achieve a consistent and comprehensive agreement. Following the final agreement with Council on Budget 2007, including the level of payments, your rapporteur is now in a position to recommend adoption of Amending Budget No 6.

    However, he still wants to underline the Commission's responsibility in implementing the payments as agreed by the budgetary authority within the framework of the annual budgetary procedure. Decreasing payment appropriations at the end of the budgetary year can only be justified by unforeseen circumstances and should, once and for all, become an exemption to the rule rather than the "rule" it seems to be at the moment.

    PROCEDURE

    Title

    Draft amending budget No 6/2006 of the European Union for the financial year 2006, Section III - Commission

    References

    15635/2006 – C6-0441/2006 – 2006/2265(BUD)

    Legal basis

    Articles 272 EC and 177 Euratom

    Basis in Rules of Procedure

    Rule 69 and Annex IV

    Committee responsible

             Date of referral

    BUDG

     

    Committee(s) asked for opinion(s)

             Date of referral

     

     

     

     

     

    Rapporteur
      Date appointed

    Giovanni Pittella
    6.12.2004

    Previous rapporteur

    Salvador Garriga Polledo

    Preliminary draft amending budget

                   Date presented by Commission

    No 6/2006 – SEC(2006)1410

    31.10.2006

    Date draft amending budget established by the Council

    00.0.2006

    Date draft amending budget forwarded by the Council

    0.0.0000

    Discussed in committee

    28.11.2006

    30.11.2006

     

     

     

    Date adopted

    30.11.2006

    Result of final vote

    for: 29

    against: 0

    abstentions: 0

    Members present for the final vote

    Laima Liucija Andrikienė, Richard James Ashworth, Reimer Böge, Herbert Bösch, Simon Busuttil, Gérard Deprez, Valdis Dombrovskis, Brigitte Douay, Hynek Fajmon, Szabolcs Fazakas, Salvador Garriga Polledo, Ingeborg Gräßle, Louis Grech, Nathalie Griesbeck, Catherine Guy-Quint, Anne E. Jensen, Wiesław Stefan Kuc, Alain Lamassoure, Janusz Lewandowski, Jan Mulder, Gérard Onesta, Giovanni Pittella, Esko Seppänen, Nina Škottová, László Surján, Helga Trüpel, Kyösti Virrankoski, Ralf Walter

    Substitutes present for the final vote

    Lidia Joanna Geringer de Oedenberg

    Substitutes under Rule 178(2) present for the final vote

     

    Date tabled 

    4.12.2006

     

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