(Codecision procedure: first reading)

The European Parliament,

–   having regard to the Commission proposal to the European Parliament and the Council (COM(2007)0395),

–   having regard to Articles 251(2) and Article 149(4) of the EC Treaty, pursuant to which the Commission submitted the proposal to Parliament (C6-0228/2007),

–   having regard to Rule 51 of its Rules of Procedure,

–   having regard to the report of the Committee on Culture and Education and the opinions of the Committee on Foreign Affairs, the Committee on Development, the Committee on Budgets, the Committee on Employment and Social Affairs and the Committee on Women's Rights and Gender Equality (A6-0294/2008),

1.  Approves the Commission proposal as amended;

2.  Considers that the financial envelope indicated in the legislative proposal must be compatible with the ceiling of heading 1a of the new multiannual financial framework and points out that the annual amount will be decided within the annual budgetary procedure in accordance with the provisions of point 37 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management(1);

3.  Notes that the mandate of the Education, Audovisual and Culture Executive Agency does not cover the proposed extension of the Erasmus Mundus programme; stresses that implementation of the programme by the Executive Agency will only be possible after a duly approved extension of the mandate, in accordance with the legal provisions in force;

4.  Notes that the indicative overall amount of EUR 460 000 000 proposed for the financing of Action 2 of the programme would be covered by the financial envelopes of the respective external policy instruments;

5.  Stresses that financing of the activities foreseen under Action 2 must not be detrimental to other activities financed under the respective instruments; reiterates its position that new actions should only be financed from the EU budget when additional financial means are provided for them; calls on the Commission to provide the Parliament with an annual report presenting detailed data on the activities under Action 2 and their breakdown by financial instrument and among the regions and countries concerned;

6.  Calls on the Commission to refer the matter to Parliament again if it intends to amend the proposal substantially or replace it with another text;

7.  Instructs its President to forward its position to the Council and the Commission.

(1) OJ C 139, 14.6.2006, p. 1.

(As an agreement was reached between Parliament and Council, Parliament's position at first reading corresponds to the final legislative act, Decision No 1298/2008/EC.)