REPORT on a draft amendment of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management

12.12.2008 - (2008/2325(INI))

Committee on Budgets
Rapporteur: Reimer Böge

Procedure : 2008/2325(INI)
Document stages in plenary
Document selected :  
A6-0504/2008
Texts tabled :
A6-0504/2008
Debates :
Texts adopted :

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

on a draft amendment to the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management

(2008/2325(INI))

The European Parliament,

–   having regard to the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management[1] (IIA), and in particular Point 25 thereof,

–   having regard to the outcome of the conciliation meeting of 21 November 2008 with the Council,

–   having regard to the Commission proposal to the European Parliament and to the Council (COM(2008)0834),

–   having regard to its resolution of 4 December 2008 on a proposal for a regulation of the European Parliament and of the Council establishing a facility for rapid response to soaring food prices in developing countries[2],

–   having regard to Rule 45 and to Annex VI, Section IV, points (1) and (2), of its Rules of Procedure,

–   having regard to the report of the Committee on Budgets (A6‑0504/2008),

A.  whereas the European Parliament firmly supports the initiative of the Commission to create a new facility for rapid response to soaring food prices in developing countries (the "Food Facility"), the idea of which had also been endorsed by the European Council of 19 and 20 June 2008,

B.   whereas the European Parliament and the Council, at the conciliation meeting of 21 November 2008, agreed on the financing of the "Food Facility" for a total amount of EUR 1 billion over three years,

C.  whereas the initial proposal of the Commission envisaged financing the "Food Facility" from the margin of heading 2 of the Multiannual Financial Framework (MFF), but this approach was rejected both by the European Parliament and the Council,

D.  whereas the European Parliament considered that the most appropriate solution would be the revision of the ceiling of heading 4 of the MFF, but the Council rejected this option,

E.   whereas the two branches of the budgetary authority finally agreed to finance the "Food Facility" through an optimal combination of the Emergency Aid Reserve, the Instrument of Flexibility and redeployment within heading 4 from the Instrument for Stability,

F.   whereas this agreement foresees that the Emergency Aid Reserve will contribute to the financing of the "Food Facility" with a total of EUR 340 millions, of which 22 millions from the appropriations still available in the 2008 budget, 78 million from the appropriations budgeted for 2009 and 240 million through a one-off increase in the amount of the Emergency Aid Reserve to be budgeted in 2008,

G.  whereas this increase requires a modification of Point 25 of the IIA in order to increase the funds available in the Emergency Aid Reserve for 2008 to EUR 479 218 000 (in current prices),

H.  whereas this modification requires the approval of both branches of the budgetary authority, which implies the unanimous agreement of all Member States in the Council,

1.   Welcomes the draft amendment for the modification of Point 25 of the IIA as attached, which increases the funds available in the Emergency Aid Reserve for 2008 to EUR 479 218 000 (in current prices);

2.  Reiterates, however, its concerns about the fact that heading 4 has been under permanent pressure due to its limited available margin, which necessitates mobilisation of exceptional mechanisms in order to respond to urgent unforeseen situations; calls for a thorough evaluation of the necessity to increase the amounts available under this heading in order to allow for the smooth development of long-term programmable activities in this area and secure the Union's capacity to fully play its role as a global actor in the international sphere;

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

ANNEX

Draft amendment of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission

on budgetary discipline and sound financial management

The European Parliament, the Council of the European Union and the Commission of the European Communities,

Whereas:

(1)      The recent developments in food and commodity prices have raised concerns especially as regards their impact for developing countries. The Commission proposed to create a new facility for rapid response to soaring food prices in developing countries[1] and the two arms of budgetary authority, at the conciliation meeting of 21 November 2008, have agreed to provide part of the financing for this facility from the Emergency Aid Reserve.

(2)      Since the remaining amount of the Emergency Aid Reserve for the year 2008 is insufficient to cover the needs of the food facility, an increase is necessary in order to enable the Reserve to contribute to the food facility financing.

(3)      In order to address that exceptional situation the Emergency Aid Reserve should be increased to EUR 479 218 000 in current prices, uniquely and exceptionally for the year 2008.

(4)      Point 25 of the Interinstitutional agreement on budgetary discipline and sound financial management should therefore be amended accordingly,

have agreed as follows:

In Point 25 the following sentence shall be added to the first subparagraph:

"This amount shall be exceptionally increased to EUR 479 218 000 for the year 2008 in current prices."

Done at Brussels,

For the European Parliament               For the Council                For the Commission

The President                                         The President                   The President

RESULT OF FINAL VOTE IN COMMITTEE

Date adopted

2.12.2008

 

 

 

Result of final vote

+:

–:

0:

20

0

0

Members present for the final vote

Richard James Ashworth, Glenn Bedingfield, Reimer Böge, Costas Botopoulos, Brigitte Douay, Göran Färm, Catherine Guy-Quint, Jutta Haug, Anne E. Jensen, Wiesław Stefan Kuc, Janusz Lewandowski, Vladimír Maňka, Mario Mauro, Margaritis Schinas, László Surján, Helga Trüpel, Kyösti Virrankoski, Ralf Walter

Substitute(s) present for the final vote

Paul Rübig, Peter Šťastný