PDF to HTML - Convert PDF files to HTML files

Europaudvalget 2004-05 (2. samling)
EUU Alm.del Bilag 168
Offentligt

merne af Folketingets Europaudvalg

stedfortrædere

Journalnummer

400.C.2-0

Kontor

EUK

2. juni 2005

Til underretning for Folketingets Europaudvalg vedlægges formandskabets nye forhandlings-

boks om finansielle perspektiver 2007-2013, 9637/05.

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

COUNCIL OF

THE EUROPEAN UNION

Brussels, 2 June 2005

9637/05

CADREFIN 115

NOTE

from :

to :

Subject :

the Presidency

Council

Financial Perspective 2007-2013

The Presidency hereby submits to delegations a further revised version of the "negotiating box"

on the Financial Perspectives. This was foreseen in the Presidency's plans for the organisation of

future work circulated in January (document 5045/05). Drawing on the experience of the Agen-

da 2000 negotiations, the Presidency considers that the negotiating box is central to achieving the

objective agreed by the European Council in December 2004 of reaching political agreement by

June 2005.

Both the structure and format of the negotiating box are based on that used in the Agenda 2000

negotiations. It is important to underline that the negotiating box is not a report on the discussi-

ons so far. These are instead covered in the two reports drawn up at the end of the Irish and

Dutch Presidencies as well as the separate summary of work to date under the Luxembourg Pre-

sidency (doc. 6825/05 CADREFIN 35). Nor does the negotiating box at this stage constitute an

attempt to draw up a global compromise package on the negotiations.

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

It is rather a tool designed to provide a solid framework and give focus and momentum to the

discussions. To this end it incorporates two kinds of elements: language on principles and issues

which might serve as the basis for the conclusions of the June European Council (presented in

normal typeface), and descriptions of the main problems which the Presidency considers will ne-

ed to be addressed if an overall agreement is to be reached (presented in italics).

The negotiating box has been drawn up under the sole responsibility of the Presidency. It is not

binding on any delegation. This will remain the case throughout the negotiating process. The

Presidency continues to be guided by the principle that nothing is agreed until everything is ag-

reed.

The negotiating box is intended to be a dynamic document which will both guide and reflect the

discussions. The Presidency will assume responsibility for amending and supplementing the text

in the light of the evolving negotiations. These negotiations will be conducted according to the

indicative work plan already distributed to delegations (doc. 6826/05 CADREFIN 36).

________________________

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

ANNEX

NON-PAPER

FINANCIAL PERSPECTIVE 2007-2013

NEGOTIATING BOX

The basis for calcu lating the figu res contained in this negotiating box is

set ou t in Fiches no. 29 REV 1 and 92 circu lated by the Com m ission.

PDF to HTML - Convert PDF files to HTML files

INTRODUCTION

[PM]

THE NEW FINANCIAL PERSPECTIVE - GENERAL

The new Financial Framework should provide the financial means neces-

sary to address effectively and equitably future internal and external chal-

lenges, including those resulting from disparities in the levels of develop-

ment in an enlarged Union. It should, in parallel, attest to determined ef-

forts towards budgetary discipline in all policy areas within a general con-

text of budgetary consolidation in the Member States. Policies agreed in

accordance with the Treaty should be consistent with the principles of sub-

sidiarity, proportionality and solidarity. They should also provide added

value.

The new financial perspective should cover the seven years between 2007

and 2013 and be drawn up for a European Union comprising 27 Member

States on the working assumption that Bulgaria and Romania will join the

Union in 2007.

Expenditure under the new Financial Perspective should be grouped under

5 headings designed to reflect the Union's political priorities and providing

for the necessary flexibility in the interest of efficient allocation of re-

sources. Where a heading is divided into sub-headings, these will have the

same status as separate headings.

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

In the light of the above, the maximum total figure for expenditure for

EU 27 for the period 2007-2013 is X in appropriations for commitments,

representing A% of EU GNI, and Y in appropriations for payments, repre-

senting B% of EU GNI. The breakdown of appropriations for commit-

ments is as described below. The same figures are also set out in Table A

(attached). They are expressed using constant 2004 prices with automatic

annual technical adjustments for inflation.

Expenditure will be financed under a ceiling for own resources maintained

at its current level of 1,31% of EU GNI for appropriations for commit-

ments and 1,24% of EU GNI for appropriations for payments.

p.m.

Reference to the opinion of the European Parliament on the Finan-

cial Perspective packet (expected in June 2005)

Renewal of the Interinstitutional Agreement

The current financial framework and Interinstitutional Agreement have

largely succeeded in their objective of ensuring financial discipline, the

orderly evolution of expenditure and smooth budgetary procedures. The

new agreement to be established between EP, Council and Commission

will have to pursue the same objectives and should allow for the degree of

flexibility needed to strike a satisfactory balance between budgetary disci-

pline and efficient resources allocation. For the purposes of sound finan-

cial management, the institutions will ensure as far as possible that, with

the exception of sub-heading 1b, sufficient margins are left available an-

nually beneath the ceilings for the various headings and sub-headings.

Moreover, this renewed agreement should also be used to update and sim-

plify the various existing agreements and joint declarations concerning

budgetary matters.

The European Council calls on the Council, on the basis of a common po-

sition and subject to acceptable terms being attainable, to reach agreement

with the EP and Commission on a new IIA reflecting the outcome of these

conclusions.

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

HEADING 1A) – COMPETITIVENESS FOR GROWTH AND EM-

PLOYMENT

The level for sub-Heading 1a) should provide adequate financing for ini-

tiatives taken at the European level in support of and in synergy with ac-

tion by the Member States to contribute to the goals of the Lisbon Strate-

gy. These are grouped under the following five broad objectives: research

and technological development, connecting Europe through EU networks,

education and training, promoting competitiveness in a fully-integrated

single market, and the social policy agenda. Nuclear de-commissioning

will also be financed under this sub-Heading. The level of commitments,

which represents just over 8% annual real growth compared to 2006,

should not exceed:

SUB-HEADING 1a)

2007

8280

2008

8950

2009

9670

2010

10450

2011

11290

2012

12190

(Mio euros, 2004 prices)

2013

13170

On the basis of these levels of commitments, and taking into account the

indicative figures proposed by the Commission for each of the objectives

under this sub-Heading, the European Council invites the Council, togeth-

er with the European Parliament as appropriate, to come to a timely

agreement through the legislative procedure on the content and appropriate

funding of the instruments pertaining to this sub-Heading in the light of the

various priorities expressed by the Member States. In this context, as far

as the specific area of research is concerned, due attention will need to be

paid to excellence and to ensuring fair and balanced access to the 7

Framework Programme.

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

HEADING 1B) – COHESION FOR GROWTH AND EMPLOYMENT

10.

The operation of cohesion policy will have contributed significantly over

the current financial perspective period to fulfilling the Treaty aim of re-

ducing disparities between the levels of development of the various re-

gions. The recent enlargement, and the one to come, has considerably in-

creased the economic and social disparities at both regional and national

level, thus underscoring the need to maintain the goal of achieving eco-

nomic and social cohesion firmly at the centre of the Union's policy objec-

tives over the next financial perspective period while, at the same time,

supporting the Lisbon Strategy goals.

11.

Accordingly, there should be an appropriate concentration of structural and

cohesion fund assistance on the least developed regions and Member

States while providing for satisfactory transitional arrangements in particu-

lar for those contributing most to such a concentration. Actions supported

by cohesion policy should be focussed on investment in a limited number

of priorities organised around three Objectives:

Convergence; Regional

competitiveness and employment; Territorial cooperation.

12.

A number of reforms will improve the delivery of structural funds, by en-

couraging a more strategic approach to programming, bringing about

greater decentralisation of responsibilities and enhancing management and

control systems. In this connection, the work of the Cohesion Fund will be

integrated into the programming of structural assistance to ensure greater

coherence among the various Funds.

VERALL LEVEL OF ALLOCATIONS

13.

The appropriate level of commitment appropriations to be entered in the

financial perspective for the structural funds and the Cohesion Fund shall

be:

SUB-HEADING 1b)

2007

2008

2009

2010

2011

2012

(Mio euros, 2004 prices)

2013

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

xxx

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

Pursuing the goal of achieving economic and social cohesion in the enlarged

Union will require a level of financial commitment for 2007-2013 of 0,37% of

EU-27 GNI.

14.

[82%] of these funds (yyy million euros) will be allocated to the Conver-

gence objective, of which xxx% (yyy million euros) for the Cohesion

Fund, xxx% (yyy million euros) for the "phasing out" regions and Member

States.

[15%] (yyy million euros) of these funds will be allocated to the Regional

competitiveness and employment objective, of which xxx%

(yyy million euros) to the "phasing in" regions.

The Territorial cooperation objective

(yyy million euros) of these funds.

15.

will

allocated

[3%]

As under the current Financial Framework, total transfers from funds sup-

porting cohesion to any Member State, including those funds transferred to

the new Rural development and Fisheries instruments, should not exceed

4% of that Member State's GDP, in order to pay regard to the finite capaci-

ty of Member States to utilise effectively the resources available.

EFINITION OF THE DIFFERENT OBJECTIVES AND ELIGIBILITY

Definition of the Convergence Objective

16.

The Convergence Objective shall be aimed at speeding up the convergence

of the least-developed regions and Member States.

17.

The regions eligible for funding from the structural funds under this Ob-

jective are the current NUTS level II regions whose per capita GDP,

measured in purchasing power parities and calculated on the basis of

Community figures for the period 2000-2002, is less than 75% of the

EU 25 average.

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

18.

The Member States eligible for funding from the Cohesion Fund shall be

those whose per capita GNI, measured in purchasing power parities and

calculated on the basis of Community figures for the period 2001-2003, is

less than 90% of the EU 25 average and which have a programme for

meeting the economic convergence conditions referred to in Article 104 of

the Treaty.

Definition of the Regional Competitiveness and Employment Objective

19.

This Objective shall be aimed at strengthening regions' competitiveness

and attractiveness as well as employment. The respective contributions of

the ERDF and ESF shall be fixed by the Member States in consultation

with the Commission.

20.

The entire territory of the Community shall be eligible, with the exception

of the regions eligible for funding from the structural funds under the Con-

vergence Objective and the regions covered by transitional arrangements

(cf. paragraph 35).

Definition of the European Territorial Cooperation Objective

21.

This Objective aims at strengthening territorial cooperation at the

cross-border, trans-national and inter-regional levels and at establishing

cooperation networks and furthering the exchange of experience at the ap-

propriate territorial level.

22.

The regions eligible for cross-border cooperation financing shall be all

NUTS level III regions along the internal land borders, certain NUTS level

III regions along the external land borders and certain NUTS level III re-

gions along the maritime borders separated, as a general rule, by a maxi-

mum of 150 kms, taking into account potential adjustments needed to en-

sure the coherence and continuity of the cooperation action.

23.

The list of eligible trans-national regions will be drawn up by the Commis-

sion on the basis of the Community- level strategic guidelines established

by the Council.

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

24.

The entire territory of the Community shall be eligible for the financing of

inter-regional cooperation and cooperation networks and exchange of ex-

perience.

LLOCATION METHOD

Allocation method for convergence regions

25.

The specific level of allocations to each Member State should be based on

an objective method and calculated as follows:

Each Member State's allocation is the sum of the allocations for its individual

eligible regions, the latter calculated on the basis of relative regional and nati-

onal prosperity and the unemployment rate according to the following steps:

(i)

determination of an absolute amount (in euros) obtained by multiplying

the population of the region concerned by the difference between that

region's GDP per capita (PPS) and EU 25 average GDP per capita

(PPS);

application of a percentage to the above absolute amount in order to

determine that region's financial envelope; this percentage is graduated

to reflect the relative prosperity, as compared to the EU 25 average, of

the Member State in which the eligible region is situated, i.e.:



4,20%

for regions in Member States whose level of

GNI per capita is below 82% of the Community

average



3,36%

for regions in Member States whose level of

GNI per capita is between 82% and 99% of the

Community average



2,52%

for regions in Member States whose level of

GNI per capita is over 99% of the Community

average

(ii)

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

(iii)

to the amount obtained under step (ii) is added, if applicable, an

amount resulting from the allocation of a premium of 700 euros per

unemployed person, applied to the number of persons unemployed in

that region exceeding the number that would be unemployed if the

average unemployment rate of all the EU convergence regions applied.

26.

The level of funds determined by the application of these parameters will

include that part to be transferred to Heading 2 (cf. paragraph 46).

Allocation method for the Cohesion Fund

27.

The total theoretical financial envelope is obtained by multiplying average

per capita aid intensity of 37,5 euros by the eligible population. Each eli-

gible Member State's a priori allocation of this theoretical financial enve-

lope corresponds to a percentage based on its population, surface area and

national prosperity, and obtained by applying the following steps:

calculation of the arithmetical average of that Member State's populati-

on and surface area shares of the total population and surface area of

all the eligible Member States; if, however, a Member State's share of

total population exceeds its share of total surface area by a factor of 5

or more, reflecting an extremely high population density, only the share

of total population shall be used for this step;

adjustment of the percentage figures so obtained by a coefficient repre-

senting one third of the percentage by which that Member State's GNI

per capita (PPS) exceeds or falls below the average GNI per capita of

all the eligible Member States (average expressed as 100%).

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

28.

In order to reflect the significant needs of new Member States in terms of

transport and environment infrastructure, the share of the Cohesion Fund

will be set at ⅓ of the total financial allocation (structural funds plus Cohe-

sion Fund) for the new Member States on average over the period, with the

annual amounts being determined by the Member States in consultation

with the Commission. For the other Member States, their financial enve-

lope results directly from the allocation method described in paragraph 26.

29.

Member States' eligibility for the Cohesion Fund will be reviewed in 2010

on the basis of data relating to the EU-25.

Allocation method for the Regional Competitiveness and Employment Objective

30.

The share of each Member State concerned is the sum of the shares of its

eligible regions, with the latter determined according to the following cri-

teria, weighted as indicated: total population (weighting 0,5), number of

unemployed people in NUTS Level III regions with an unemployment rate

above the group average (weighting 0,2), number of jobs needed to reach

an employment rate of 70% (weighting 0,15), and number of employed

people with a low educational level (weighting 0,10), low population den-

sity (weighting 0,05). The shares are then adjusted according to relative

regional prosperity (for each region, increase or decrease of its total share

by +5%/-5% according to whether its GDP per capita is below or above

the average GDP per capita for the group). The share of each Member

State shall not however be less than two thirds of its share in 2006 of com-

bined funding under Objectives 2 and 3.

Allocation method for the Territorial Cooperation Objective

31.

The allocation of resources between the beneficiary Member States is de-

termined as follows:



for the cross-border component (including the contribution of the

ERDF to the cross-border strand of the European Neighbourhood

and Partnership Instrument and the Instrument for Pre-accession), on

the basis of the population of the NUTS level III regions in terrestrial

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

and maritime border areas, as a share of the total population of all

the eligible regions, it being understood that aid intensity for regions

along the former external terrestrial borders between the EU-15 and

the EU-12 will be 20% higher than for the other regions concerned.

Contributions provided from Heading 4 should be allocated simulta-

neously;



for the transnational component, on the basis of the total popula-

tion of the Member State, as a share of the total population of all the

Member States concerned.

The shares of the cross-border, transnational and inter-regional cooperation

components are 75%, 21% and 4% respectively.

EGIONS WITH SPECIFIC CHARACTERISTICS RECOGNISED UNDER THE TREA-

TIES

32.

The outermost regions identified in Article 299 of the Treaty and the

NUTS level II regions fulfilling the criteria laid down in Article 2 of Pro-

tocol No 6 to the Treaty of Accession of Austria, Finland and Sweden

shall, in view of their specific constraints, benefit from additional funding

from the ERDF.

33.

This funding will amount to 20 euros per inhabitant per year and will be in

addition to any funding to which these regions are otherwise eligible.

RANSITIONAL ARRANGEMENTS

34.

In the interest of equity and to allow the process of convergence to be

completed, transitional arrangements will be put in place.

35.

The following categories of region and Member State are concerned:

(a)

the regions which would have enjoyed Convergence objective status

had the eligibility threshold remained at 75% of average EU-15 GDP,

but which lose eligibility because their nominal per capita GDP level

will now exceed 75% of the new (lower) EU-25 average (the so-called

"statistical" effect). These regions will be "phased out" of the Conver-

gence objective;

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

(b)

the regions currently enjoying full Objective 1 region status which cease

to be eligible in the next financial perspective period because natural

growth has brought their per capita GDP level to over 75% of the

EU-15 average, corresponding to over 82,19% of the new EU-25 aver-

age ("growth" effect). These regions will be "phased into" the Regional

competitiveness and employment objective;

the Member States currently eligible for funding from the Cohesion

Fund and which would have continued to be so had the eligibility

threshold remained at 90% of average EU-15 GNI, but which lose eli-

gibility because their nominal per capita GNI will now exceed 90% of

the new (lower) EU-25 average. These Member States will be "phased

out" of the Cohesion Fund element of the Convergence objective.

(c)

36.

The allocations under these phasing out/in arrangements will result from

the application of the following parameters:

(a)

for the regions defined in paragraph 35 (a)

supra,

80% of their individu-

al 2006 per capita aid intensity level in 2007 and a linear reduction the-

reafter to reach the national average per capita aid intensity level for the

regional competitiveness and employment objective in 2013.

When in a given Member State the regions defined in paragraph 35 (a)

supra

represent at least one third of the total population of the regions

fully eligible for Objective 1 assistance in 2006, the rates of assistance

shall be 80% of their individual 2006 per capita aid intensity level in

2007, 75% in 2008, 70% in 2009, 65% in 2010, 60% in 2011, 55% in

2012 and 50% in 2013.

The level of funds determined by the application of these parameters

will include that part to be transferred to Heading 2 (cf. paragraph 46);

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

(b)

for the regions defined in paragraph 35 (b)

supra,

75% of their individu-

al 2006 per capita aid intensity level in 2007 and a linear reduction the-

reafter to reach the national average per capita aid intensity level for the

regional competitiveness and employment objective by 2011;

for the Member States defined in paragraph 35 (c)

supra

the allocation

shall be degressive over 2 years, with the amount in 2007 being x% and

the amount in 2008 y% of the amount allocated in 2006 from the Co-

hesion Fund.

(c)

37.

As far as those regions which were not eligible for Objective 1 status in the

2000-2006 period or whose eligibility started in 2004 are concerned, the

above percentages will be applied to their theoretical 2006 per capita aid

intensity level calculated on the basis of the 1999 Berlin allocation method

with their regional per capita GDP level being assimilated to 75% of the

EU 15 average.

AXIMUM LEVEL OF TRANSFERS FROM FUNDS SUPPORTING COHESION

38.

In order to contribute to the objectives of adequately concentrating cohe-

sion funding on the least developed regions and Member States and reduc-

ing disparities in average per capita aid intensities resulting from capping,

the maximum level of transfer to each individual Member State shall be as

follows:



for Member States whose average 2001-2003 per capita GNI (PPS)

is under 40% of the EU-25 average: 4% of their GDP

for Member States whose average 2001-2003 per capita GNI (PPS)

is equal to or above 40% and below 50% of the EU-25 average:

3,9% of their GDP



for Member States whose average 2001-2003 per capita GNI (PPS)

is equal to or above 50% and below 55% of the EU-25 average:

3,8% of their GDP



thereafter, the maximum level of transfer is reduced by 0,1 percent-

age point of GDP for each increment of 5 percentage points of aver-

age 2001-2003 per capita GNI (PPS) as compared to the EU-25 av-

erage.

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

39.

Calculations of GDP by the Commission will be based on the latest statis-

tics (available in April 2005). Individual national growth rates of GDP for

2007-2013, as projected by the Commission, will be applied for each

Member State separately.

40.

If it is established in 2010 that any Member State's cumulated GDP for the

years 2007-2009 has diverged by more than ±5% from the cumulated GDP

estimated according to paragraph 39, the amounts allocated for that period

to that Member State pursuant to paragraph 38 will be adjusted according-

ly. The total net effect, whether positive or negative, of such adjustments

may not exceed 3 billion euros. Final adjustments will be spread in equal

proportions over the years 2011-2013.

FINANCING RATES

41.

The ceilings for the contributions from the Structural and Cohesion Funds

shall be those laid down in Articles 51 and 52 of the Commission's pro-

posal of 16 July 2004 for a Council Regulation laying down general provi-

sions on the ERDF, ESF and Cohesion Fund, except that the ceiling for the

standard rate of contribution by the ERDF or ESF under operational pro-

grammes in regions eligible under the Convergence objective situated in

Member States eligible for the Cohesion Fund shall be 80%.

DVANCE PAYMENTS

42.

Advance payments for each Member State shall not exceed the following

percentages of its overall cohesion envelope for the 2007-2013 period:

2007

2008

2009

For the structural funds

– EU 15 Member States

– EU 10 Member States, Bulgaria and Romania



9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files



For the Cohesion Fund

– EU 15 Member States

– EU 10 Member States, Bulgaria and Romania

2,5%

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

HEADING 2 – PRESERVATION AND MANAGEMENT OF NATURAL

RESOURCES

43.

Commitment appropriations for this Heading, which is intended to cover

agriculture, rural development, fisheries and a new financial instrument for

the environment, and which include those funds transferred from

sub-Heading 1b), should not exceed the following level:

HEADING 2

2007

xxx

of which Agricul-

ture - Market-

related expenditu-

re and direct

payments

(Mio euros, 2004 prices)

2010

xxx

yyy

2011

xxx

yyy

2012

xxx

yyy

2013

xxx

yyy

2008

xxx

yyy

2009

xxx

yyy

44.

The amounts for market-related expenditure and direct payments corre-

spond to those agreed at the October 2002 European Council, expressed in

2004 constant prices, [and increased by [2] billion euros to take account of

the accession of Bulgaria and Romania]. These constitute a ceiling and al-

so include the sums which, according to the modulation arrangements

agreed in the context of CAP reform, will be transferred to and disbursed

under the new Rural Development instrument. No other transfers from

this ceiling to the rest of the Heading will be allowed.

45.

The allocation for the new Rural development instrument, consisting es-

sentially of amounts transferred from the funds supporting the regional

component of the Convergence objective and amounts currently disbursed

under the guarantee section of the EAGGF, will be [73-75] billion euros

before modulation.

The allocation for the new Fisheries instrument, consisting of amounts trans-

ferred from the funds supporting the regional component of the Convergen-

Inclu d ing those equ ivalent arrangem ents covering the cotton and tobac-

co sectors.

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

ce objective and the Regional competitiveness and employment objective, will

be 4,3 billion euros.

These allocations are based on the w orking assu m p tion that the shares to

be transferred from H ead ing 1b are those p rop osed by the Com m ission.

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

46.

The amounts transferred to these two new instruments from the funds sup-

porting the regional component of the Convergence objective are deter-

mined by each Member State after consultation with the Commission,

drawing on the historical percentages of expenditure in these areas during

the period 2000–2006 (2004–2006 for the new Member States) as a refer-

ence point. They will not be subject to reallocation.

47.

The criteria for allocating the other amounts which make up these instru-

ments still need to be determined (including any particular specificities,

geographical or others, which may need to be taken into account).

48.

Member States are invited to ensure that the needs of the Natura 2000

network are properly covered through the means available under cohesion

policy and the new rural development instrument.

HEADING 3A) –FREEDOM, SECURITY AND JUSTICE

49.

The area of Freedom, Security and Justice covers a range of issues which

relate specifically to the protection and rights of individual citizens. It in-

cludes the framing of a common policy on asylum, immigration and border

control, taking a more effective, joint approach to cross-border problems

such as illegal immigration and trafficking in and smuggling of human be-

ings, as well as to terrorism and organised crime, promoting fundamental

rights and developing judicial cooperation in civil and criminal matters. It

is a sector certain to continue to grow in importance in support of action by

the Member States. The level of commitments, which represents 18% an-

nual real growth compared to 2006, should not exceed:

SUB-HEADING 3a)

2007

620

2008

720

2009

850

2010

1010

2011

1190

2012

1410

(Mio euros, 2004 prices)

2013

1670

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

HEADING 3B) – OTHER INTERNAL POLICIES

50.

A number of other actions concern in particular culture, youth, audiovisual

matters and health and consumer protection, areas where the Union has a

role as a catalyst for action by Member States. The level of commitments,

which represents 5% annual real growth compared to 2006, should not ex-

ceed:

SUB-HEADING 3b)

2007

550

2008

580

2009

610

2010

640

2011

670

2012

700

(Mio euros, 2004 prices)

2013

740

HEADING 4 – THE EU AS A GLOBAL PARTNER

51.

The Union is a global player, with a wide range of instruments as its dis-

posal. It needs to be ready to share in the responsibility for global security

and in building a better world, and to have adequate funding to enable it to

do so. The Union's external actions and policies are covered by Heading 4

and grouped in the main under the following six instruments:

Pre-accession, Stability, Development cooperation and economic coopera-

tion, European neighbourhood and partnership, Humanitarian aid and

Macrofinancial assistance. The level of commitments , which represents

around 5% annual real growth compared to 2006, should not exceed:

HEADING 4

2007

6310

2008

xxx

6610

2009

xxx

6930

2010

xxx

7260

2011

xxx

7600

(Mio euros, 2004 prices)

2012

xxx

7960

2013

xxx

8340

If the EDF is inclu d ed from 2008 onw ard s.

If the EDF rem ains ou tsid e th e bu d get over the p eriod .

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

52.

On the basis of these levels of commitments, and taking into account the

indicative figures proposed by the Commission for each of the objectives

under this Heading, the European Council invites the Council, together

with the European Parliament as appropriate, to come to a timely agree-

ment through the legislative procedure on the content and appropriate

funding of the four proposed new instruments falling under this Heading in

the light of the various priorities expressed by the Member States.

53.

Cooperation with the ACP countries will be allocated x billion euros; the

amounts concerned [will be included in the EU budget from 2008] [will be

provided for by a 10th EDF for the period 2008-2013].

54.

The emergency aid reserve and the provisioning of the loan guarantee fund

will be financed through Heading 4 and fixed at a level of 221 mil-

lion euros each. They should be adequately ring-fenced.

55.

The Union should aim to ensure over the period 2007–2013 that at least

90% of its overall external assistance be counted as official development

assistance according to the present DAC definition.

56.

The European Council calls upon the Budgetary Authority to ensure ade-

quate increases in the CFSP budget for the period 2007–2013.

HEADING 5 – ADMINISTRATION

57.

Taking account of the objective factors determining the current level of

administrative expenditure, expenditure related to enlargement, increased

operational activity and the effect of the new Statute, and savings made

possible through efficiency gains and economies of scale, the level of

commitments for the Union's administrative expenditure should not ex-

ceed:

HEADING 5

2007

6700

2008

6900

2009

7100

2010

7320

2011

7530

(Mio euros, 2004 prices)

2012

7760

2013

7990

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

58.

This Heading will, without prejudice to the ABB approach now used in

establishing the annual budget, lay down the ceiling for the administrative

expenditure of all the Institutions.

OWN RESOURCES

59.

In the light of the discussions so far, and taking into account the objectives

of simplicity, transparency and equity, the Presidency is of the opinion that

the Own Resources decision should be modified in order to reflect the fol-

lowing points.

60.

In order to improve transparency and simplicity, the rate of call of the

VAT resource should be frozen at 0,30%.

61.

Taking Fontainebleau as a starting point:

considering the subsequent substantial changes in relevant circumstances such as the

decrease in agriculture expenditure as a proportion of the budget, the increase in co-

hesion expenditure as a result of successive enlargements and the increase in the

UK's relative prosperity to amongst the highest in the Union, the amount of the UK

budgetary correction should in 2007 correspond to its nominal average over the se-

ven-year period immediately prior to the most recent enlargement (1997–2003).

This amount should be set on a downward path from the following year;

considering that the consequences of the above will have differing effects on different

Member States and that, in line with Fontainebleau, no Member State should

sustain a budgetary burden which is excessive in relation to its relative prosperity,

specific measures should be introduced for Germany, the Netherlands and Sweden

covering the period 2007–2013. These measures should consist in a reduction of

the rate of call of the VAT resource for those Member States over the period 2007–

2013.

9637/05

DQPG

PDF to HTML - Convert PDF files to HTML files

62.

In order to pave the way for a system with greater permanence, the Com-

mission should be invited to present in 2010 a general review of the own

resources system, including the possibility of modifying the structure of the

own resources by creating new autonomous own resources.

9637/05

DQPG