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Procedure : 2006/2018(BUD)
Document stages in plenary
Document selected : A6-0358/2006

Texts tabled :

A6-0358/2006

Debates :

PV 24/10/2006 - 14
CRE 24/10/2006 - 14

Votes :

PV 26/10/2006 - 6.2
Explanations of votes
Explanations of votes

Texts adopted :

P6_TA(2006)0451

Texts adopted
PDF 225kWORD 60k
Thursday, 26 October 2006 - Strasbourg
Draft general budget for 2007 (Section III)
P6_TA(2006)0451A6-0358/2006

European Parliament resolution on the draft general budget of the European Union for the financial year 2007, Section III – Commission (C6-0299/2006 – 2006/2018(BUD)), and Letter of amendment No 1/2007 (SEC(2006)0762) to the draft general budget of the European Union for the financial year 2007

The European Parliament,

–   having regard to Article 272 of the EC Treaty and Article 177 of the Euratom Treaty,

–   having regard to Council Decision 2000/597/EC, Euratom of 29 September 2000 on the system of the European Communities' own resources(1),

–   having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities(2),

–   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(3),

–   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(4),

–   having regard to its resolution of 18 May 2006 on the Commission's Annual Policy Strategy report (APS)(5),

–   having regard to the preliminary draft general budget of the European Union for the financial year 2007, which the Commission presented on 3 May 2006 (SEC(2006)0531),

–   having regard to the draft general budget of the European Union for the financial year 2007, which the Council established on 14 July 2006 (C6-0299/2006),

–   having regard to Letter of amendment No 1/2007 (SEC(2006)0762) to the draft general budget of the European Union for the financial year 2007,

–   having regard to the report of the Committee on Budgets of 11 July 2006 on the mandate for the 2007 draft budget conciliation procedure for the Council's first reading,

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

–   having regard to the report of the Committee on Budgets and the opinions of the other committees concerned (A6-0358/2006),

General considerations: setting priorities, value for money, preparing for the 2008/2009 review

1.  Recalls that its political priorities for the 2007 budget were set out in its abovementioned APS resolution of 18 May 2006; notes that paragraph 5 of that resolution set out the three key elements of setting policy priorities, ensuring qualitative value for money, and preparing for the 2008/2009 review of the 2007-2013 multi-annual financial framework (MFF);

2.  Notes that this strategy has been put into effect in preparing the Parliament's first reading on the 2007 budget with policy priorities set out in paragraph 6 of the APS resolution, and re-stated in paragraph 5 of the abovementioned report on the mandate for the 2007 draft budget conciliation procedure with the Council; notes that these priorities were central to Parliament's budget amendments on priority programmes;

3.  Remarks that this is the first budget under the new Financial Framework, under a new Interinstitutional Agreement (IIA) and with many new multiannual programmes; remarks further that a new Financial Regulation should ideally apply for the implementation of the 2007 budget;

4.  Highlights that, in line with the cost-benefit approach set out in paragraph 7 of the APS resolution, a qualitative value for money approach was started through policy hearings in the Committee on Budgets, and a thorough analysis of a number of sources of information on the quality of spending of EU funds and on budget implementation; notes that budget amendments were prepared inter alia on the basis of the information thus obtained; welcomes the fact that Council, Commission and Parliament all participate in a value-for-money trend;

5.  Considers that the level of aggregate appropriations proposed by the Council in its draft budget falls well below the level needed for the EU to respond effectively to the challenges of globalisation it faces, which only serves to highlight the importance of the third strand of Parliament's strategy, preparing for the review of the MFF, which should deliver EU spending that is better focused on policy priorities; believes that by focusing commitments on priority programmes and by ensuring that funds are well spent, EU spending will better serve the interests of citizens;

6.  Expects that all new elements and reforms set down in the new IIA of 17 May 2006 will be fully implemented in the course of the 2007 budget in order to have a rapid effect on the qualitative implementation of the budget and the inter-institutional relationship;

Horizontal issues
Focusing on priorities

7.  In line with Parliament's priorities, considers that EU spending should be focused on priority areas and at a higher level than proposed in the draft budget of the Council in order to ensure effective delivery of priority programmes to citizens; therefore proposes to increase payments in the 2007 budget to a level of 1,04% of EU GNI by increasing appropriations on budget lines linked to the Parliament's political priorities; notes that most of the specialised parliamentary committees have proposed to restore the amounts of the Preliminary Draft Budget (PDB), in line with the ongoing legislative procedures, or those beginning in 2007;

Tackling the challenges of globalisation

8.  Believes that the European Union must actively address and engage more effectively with the economic, political, social, environmental and development challenges presented inter alia by the ongoing process of globalisation; therefore presents amendments to the 2007 budget that aim at boosting the capacity of the EU economy to engage with these challenges in a more strategic manner, and raising the amounts of development assistance available to regions such as Asia and Latin America and the Mediterranean;

Delivering value for money

9.  Emphasises the need for improved value for money in the EU budget; proposes amendments to place 30% of appropriations in reserve on a number of budget lines until the Commission can reassure the Parliament that this money will be spent in a manner that delivers value for money to the European taxpayer;

10.  Recalls that these budget lines were selected on the basis of a thorough examination of the special reports of the Court of Auditors, the Synthesis Reports on the Commission's management of funds, the Budget Forecast Alert prepared by the Commission, and cost-benefit analyses carried out at the request of the Committee on Budgets and taking into account the activity statements prepared by the Commission services;

11.  Specifically welcomes the call for a hearing in mid-November for the Commission to respond to the concerns raised in these amendments; urges members of Parliament's specialised committees to participate in this hearing;

12.  Reduces by 10% the appropriations for administrative management directly linked to programmes on a horizontal basis; sees no contradiction for budget lines on which the Parliament both places amounts in reserve due to some concerns about the quality of implementation and increases appropriations according to political priorities; reaffirms, in this connection, that it wishes to see qualitative value for money in all areas of EU spending;

13.  Recalls the importance attached by Parliament to achieving a positive statement of assurance for funds under shared management; underlines its intention to ensure that, in line with the IIA of 17 May 2006, the relevant audit authorities in Member States produce an assessment concerning the compliance of management and control systems with the regulations of the Community; reiterates that Member States therefore undertake to produce an annual summary at the appropriate national level of the available audits and declarations;

Pilot projects and preparatory actions

14.  As regards pilot projects and preparatory actions, notes the increased ceilings for new projects set out in the IIA of 17 May 2006; proposes a number of new projects broadly in line with the priorities set out in paragraph 6 of the APS resolution;

Agencies

15.  For existing agencies proposes, as a general approach with a small number of specific exceptions, to restore appropriations in the PDB but placing increases above a reference amount in reserve, pending a positive evaluation of the performance of the agency against its final work programme containing a complete task list for 2007 and the new staff policy plans by the Commission; as regards the new agencies (Chemicals Agency, Gender Institute, Fundamental Rights Agency), with a view to ensuring the application of Point 47 of the IIA of 17 May 2006, proposes to delete the appropriations entered in the draft budget in particular in light of the fact that no legal base yet exists for these agencies; expects the Council to clarify host countries' contributions to agencies already established and to adopt a set of binding common standards;

Specific approach per heading
Heading 1a - Competitiveness for growth and employment

16.  Confirms its conviction expressed in its APS resolution that knowledge, skills, research and development, innovation, information society technologies, and a sustainable transport and energy policy form the basis of a healthy modern economy and are essential for job creation; has therefore decided to reject the Council's approach of reductions in a number of crucial budget lines aiming at improving the competitiveness of the EU's economy; has decided to increase payment appropriations for priority programmes linked to the Lisbon agenda such as the Competitiveness and Innovation Programme (CIP) and the Seventh Framework Programme of the European Community for research, technological development and demonstration activities (2007-2013);

17.  Regrets that the appropriations for trans-European transport networks (TEN-T) have been considerably reduced for the 2007-2013 MFF to a level lower than had been anticipated; underlines the importance of a clear statement from the Commission of its proposed priorities for TEN-T investment; awaits a satisfactory agreement with the Council and the Commission on a regulation on financial aid in the field of trans-European transport networks and priority projects to which funds should be allocated;

18.  Is convinced that raising the EU's competitiveness is an essential element of the EU's response to the challenges of globalisation; therefore considers increases in appropriations in heading 1a to be a clear signal of the future direction that EU spending should take; recalls the need for adequate public funding to create the pump-priming effect expected of European Investment Bank cofinancing; awaits with impatience the proposals by the Commission and Council on this subject; stresses that an increase in the long-term subscribed capital would be desirable for the European Investment Fund, both to accompany the introduction of the new mandates (including the CIP) in 2007 and to finance the new technology transfer project operations, as wished by Parliament, the Council or the Commission;

19.  Stresses the extraordinary technological and economic significance of the Galileo programme; reminds the Commission that, taken over the period as a whole, this programme is underfinanced in the new MFF and calls on the Commission to seek promptly a workable and lasting solution in order to ensure the success of this programme;

Heading 1b - Cohesion for growth and employment

20.  Notes that the appropriations for the structural and cohesion funds are considerably lower for the 2007-2013 MFF than had been anticipated, largely as a result of the conclusions of the December 2005 European Council; considers therefore that the appropriations in the PDB should be restored; underlines the importance of establishing and approving as quickly as possible national programmes now that the new IIA has been agreed; stresses the importance of cohesion as one of the policy priorities of the EU; has decided to increase payment appropriations for budget lines linked to cohesion in line with its policy priorities;

21.  Calls on the Commission to present the requisite texts and initiate procedures as soon as possible to enable the allocation of resources for the International Fund for Ireland during the 2007 budgetary exercise; further calls on the Commission to clarify the legal basis for the Peace Programme;

Heading 2 - Preservation and management of natural resources

22.  Notes that 2007 will be the first year of full implementation of the most recent reform of the Common Agricultural Policy (CAP); deplores the Council's drastic across-the-board cut in market expenditure of EUR 525 million, based on accounting criteria and without taking account of Parliament's priorities; calls therefore for the re-establishment of the figures in the PDB;

23.  Deplores the fact that in spite of the major needs for restructuring, modernisation and diversification of Europe's rural economy, the resources allocated to rural development are set to fall in real terms; considers that a voluntary transfer of funds from direct agricultural support (CAP "first pillar") to rural development is not the appropriate means for remedying this situation; expresses in this connection strong reservations about the current Commission proposal concerning voluntary modulation of up to 20% of direct agricultural support to rural development; calls on the Commission to conduct an impact assessment in accordance with the Interinstitutional Agreement of 16 December 2003 between the European Parliament, the Council and the Commission on better law-making(6) and on that basis to submit a revised proposal on voluntary modulation;

24.  Urges the Commission, in the absence of agreement between the co-legislators on LIFE+, to include in an amending letter the necessary modifications to allow the provisional financing of activities contributing to preparatory work and continuity of the environmental programmes;

Heading 3a - Freedom, security and justice

25.  Points out that the area of Freedom, Justice and Security, and in particular the promotion of fundamental rights, the definition of a common asylum and migration policy and the fight against terrorism and organised crime, is one of the Union's key priorities; resolves accordingly to increase the resources allocated to this area, in particular to Eurojust, the sole body for judicial cooperation between the Member States in the criminal law field, the growing effectiveness of which must be stepped up still further;

26.  Considers that integrated management of the Union's external borders is one of the objectives currently requiring urgent, and greater, support; accordingly backs the increase in resources made available to the External Borders Fund; increases the resources made available to the FRONTEX Agency; restates its repeatedly made demand that Europol be placed on a Community footing in order both to increase its effectiveness and to step up the democratic and judicial oversight to which it must be subject;

Heading 3b - Citizenship

27.  Recalls the importance of the principle of subsidiarity in the field of culture, education, training and youth, and believes that respect for pluralism of opinion is the first condition for an effective communication policy in order to bring the EU closer to citizens; considers that better use can be made of new communications media to bring together European policymakers from all political opinion to share ideas; urges the Commission to clarify the budget implications of and the actions to be taken under the Plan D for Democracy Debate and Dialogue; asks the Commission to publish on the Internet the detail of allocation of subsidies (amounts and beneficiaries) for all actions;

Heading 4 - The EU as a global player

28.  Believes that the EU can and should be engaging more quickly and more strategically with the process of globalisation; proposes the restoration of PDB figures on a number of lines and increases beyond the PDB in payments and in commitments in some areas with a view to boosting EU activities through Community programmes in the fields of foreign policy, development and humanitarian aid, and business and scientific exchanges with key emerging countries such as China and India;

29.  Notes that the new legal framework for the EU's external actions also implies a new budget structure; welcomes in general the simplification of instruments and the new budget nomenclature proposed with it; welcomes also the presentation of a separate instrument on Human Rights and Democracy, which requires a modification of the nomenclature of the PDB; cannot accept, however, that a number of  the proposed changes reduce transparency for either sectors and/or regions and countries; has introduced necessary modifications in this respect; calls on the Commission to provide also a breakdown per activity and pre-accession country and, in the interests of transparency, a corresponding nomenclature in all corresponding budget lines; moreover, calls on the Commission to provide a regular monitoring report to the budgetary authority on the progress of both the two new Member States and the pre-accession countries;

30.  Is concerned that the expansion of activities in the area of the Common Foreign and Security Policy has not been matched by increased democratic accountability and parliamentary scrutiny; proposes budgetary amendments that seek to foster a greater degree of transparency and cooperation in this regard;

Heading 5 - Administration

31.  Is firmly opposed to the approach adopted by the Council in the draft declarations annexed to the draft budget on administrative resources that advocated cutting 200 posts in the EU institutions, principally the Commission, in 2008 and a further 500 posts between 2008 and 2010;

32.  Decides to restore the cuts made by the Council on the Commission's administrative expenditure including for the establishment plan in order to allow its proper functioning; however, enters EUR 50 million in the reserve with four conditions as follows:

   commitment to carry out a screening exercise before 30 April 2007 providing a mid-term evaluation of its staff needs and a detailed report on the Commission's staffing of support and coordination functions covering all places of work;
   commitment to set down an improved procedure in line with the Framework Agreement to include Parliament's legislative and budgetary priorities in its legislative and work programme, allowing a presentation before Parliament in February 2007 of the Union's work programme;
   agreement on a joint programme on simplification of the Union's regulatory environment;
   commitment to provide a state of play of the review of all outstanding regulations including a report on the Commission's activities to improve the transposition of EU law into national law to ensure that the criteria to strengthen competitiveness are met;

33.  Is of the opinion that the European Communities Personnel Selection Office (EPSO) should introduce radical changes in its operating methods in order to offer to the Institutions more quickly a greater number of candidates who are more suited to the Institutions' needs;

o
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34.  Takes note of the opinions voted by specialised committees as contained in report A6-0358/2006;

35.  Instructs its President to forward this resolution, together with the amendments and proposed modifications to Section III of the draft general budget, to the Council and Commission, and to the other institutions and bodies concerned.

(1) OJ L 253, 7.10.2000, p.42.
(2) OJ L 248, 16.9.2002, p.1.
(3) OJ C 139, 14.6.2006, p.1.
(4)4 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).
(5)5 Texts adopted, P6_TA(2006)0221.
(6) OJ C 321, 31.12.2003, p. 1.

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