DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 7 September 2005

on the revision of the financial perspective 2000 to 2006

(2005/708/EC)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

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(1), and in particular to points 19, 20 and 21 thereof,

Having regard to Decision 2003/430/EC of the European Parliament and of the Council of 19 May 2003 on the revision of the financial perspective(2),

Having regard to the proposal from the Commission,

Acting in accordance with the procedure laid down in the fifth subparagraph of Article 272(9) of the Treaty(3),

Whereas:

The reform of the common agricultural policy adopted by the Council in September 2003(4) provides for a reduction in direct payments (modulation) to finance rural development policy to achieve a better balance between policy tools designed to promote sustainable agriculture and those designed to promote rural development and to finance additional rural development measures. The financial perspective set out in Annex I to the Interinstitutional Agreement on budgetary discipline and improvement of the budgetary procedure as revised by Decision 2003/430/EC hereinafter referred to as the ‘financial perspective’, should therefore be modified to take into account the effect of ‘modulation’ for the year 2006. As a consequence, commitment appropriations from subheading 1a ‘Common agricultural policy’ can be used to finance additional measures under subheading 1b ‘Rural development’, with no change in the ceiling of heading 1 ‘Agriculture’,

HAVE DECIDED AS FOLLOWS:

Article 1

The financial perspective is revised as follows:

The annual ceilings for appropriations for commitments in heading 1 of table 1a, table 1b, table 2a and table 2b shall be amended as follows:

(a) the figure for the subheading 1a ‘Common agricultural policy’ shall be reduced in 2006 by the amount corresponding to the modulation;

Reduced amounts in common agricultural policy	2006
EUR million at 1999 prices	– 570
EUR million at 2006 prices	– 655

(b) the figure for the subheading 1b ‘Rural development’ shall be increased in 2006 by the amount corresponding to the modulation;

Increased amounts in rural development	2006
EUR million at 1999 prices	+ 570
EUR million at 2006 prices	+ 655

Article 2

1. The financial perspective for the European Union, in 1999 prices, is set out in tables 1a and 1b in the Annex.

2. The corresponding financial perspective resulting from the technical adjustment for 2005, in line with movements in gross national income (GNI) and prices, is set out in tables 2a and 2b in the Annex.

Article 3

This decision shall be published in the

Official Journal of the European Union

Done at Strasbourg, 7 September 2005.

For the European Parliament

The President

BORRELL FONTELLES

For the Council

The President

ALEXANDER

(1)

OJ C 172, 18.6.1999, p. 1

. Agreement amended by Decision 2003/429/EC of the European Parliament and of the Council (

OJ L 147, 14.6.2003, p. 25

(2)

OJ L 147, 14.6.2003, p. 31

(3) Decision of the European Parliament of 7 September 2005 and Decision of the Council of 18 July 2005.

(4) Council Regulation (EC) No 1782/2003 (

OJ L 270, 21.10.2003, p. 1

ANNEX

Table 1a: Revised financial perspective (EU-25) at 1999 prices

(EUR million)

Commitment appropriations

2000

2001

2002

2003

2004

2005

2006

1.	AGRICULTURE

40 920

42 800

43 900

43 770

44 657

45 677

45 807

1a	Common agricultural policy

36 620

38 480

39 570

39 430

38 737

39 602

39 042

1b	Rural development

4 300

4 320

4 330

4 340

5 920

6 075

6 765

2.	STRUCTURAL ACTIONS

32 045

31 455

30 865

30 285

35 665

36 502

37 940

Structural funds

29 430

28 840

28 250

27 670

30 533

31 835

32 608

Cohesion fund

2 615

5 132

4 667

5 332

3.	INTERNAL POLICIES

5 930

6 040

6 150

6 260

7 877

8 098

8 212

4.	EXTERNAL ACTIONS

4 550

4 560

4 570

4 580

4 590

4 600

4 610

5.	ADMINISTRATION(1)

4 560

4 600

4 700

4 800

5 403

5 558

5 712

RESERVES

900

650

400

Monetary reserve

500

250

Emergency aid reserve

200

Guarantee reserve

200

7.	PRE-ACCESSION STRATEGY

3 120

Agriculture

520

Pre-accession structural instrument

1 040

PHARE (applicant countries)

1 560

8.	COMPENSATION

1 273

1 173

940

TOTAL APPROPRIATIONS FOR COMMITMENTS

92 025

93 475

93 955

93 215

102 985

105 128

106 741

TOTAL APPROPRIATIONS FOR PAYMENTS

89 600

91 110

94 220

94 880

100 800

101 600

103 840

Ceiling, appropriations for payments as % of GNI (ESA 95)

1,07 %

1,10 %

1,11 %

1,10 %

1,07 %

Margin for unforeseen expenditure

0,17 %

0,14 %

0,13 %

0,14 %

0,17 %

Own resources ceiling

1,24 %

Table 1b: Revised financial perspective (EU-25) at 1999 prices

(including budgetary implications of a political settlement in Cyprus)

(EUR million)

Commitment appropriations

2000

2001

2002

2003

2004

2005

2006

1.	AGRICULTURE

40 920

42 800

43 900

43 770

44 650

45 675

45 805

1a	Common agricultural policy

36 620

38 480

39 570

39 430

38 740

39 611

39 052

1b	Rural development

4 300

4 320

4 330

4 340

5 910

6 064

6 753

2.	STRUCTURAL ACTIONS

32 045

31 455

30 865

30 285

35 718

36 579

38 052

Structural funds

29 430

28 840

28 250

27 670

30 571

31 899

32 703

Cohesion fund

2 615

5 147

4 680

5 349

3.	INTERNAL POLICIES

5 930

6 040

6 150

6 260

7 891

8 112

8 226

4.	EXTERNAL ACTIONS

4 550

4 560

4 570

4 580

4 590

4 600

4 610

5.	ADMINISTRATION(2)

4 560

4 600

4 700

4 800

5 403

5 558

5 712

RESERVES

900

650

400

Monetary reserve

500

250

Emergency aid reserve

200

Guarantee reserve

200

7.	PRE-ACCESSION STRATEGY

3 120

Agriculture

520

Pre-accession structural instrument

1 040

PHARE (applicant countries)

1 560

8.	COMPENSATION

1 273

1 173

940

TOTAL APPROPRIATIONS FOR COMMITMENTS

92 025

93 475

93 955

93 215

103 045

105 218

106 865

TOTAL APPROPRIATIONS FOR PAYMENTS

89 600

91 110

94 220

94 880

100 800

101 600

103 840

Ceiling, appropriations for payments as % of GNI (ESA 95)

1,07 %

1,10 %

1,11 %

1,10 %

1,07 %

Margin for unforeseen expenditure

0,17 %

0,14 %

0,13 %

0,14 %

0,17 %

Own resources ceiling

1,24 %

Table 2a: Revised financial perspective (EU-25) at current prices

(EUR million)

Commitment appropriations

Current prices

2000

2001

2002

2003

2004

2005

2006

1.	AGRICULTURE

41 738

44 530

46 587

47 378

49 305

51 439

52 618

1a	Common agricultural policy

37 352

40 035

41 992

42 680

42 769

44 598

44 847

1b	Rural development

4 386

4 495

4 595

4 698

6 536

6 841

7 771

2.	STRUCTURAL ACTIONS

32 678

32 720

33 638

33 968

41 035

42 441

44 617

Structural funds

30 019

30 005

30 849

31 129

35 353

37 247

38 523

Cohesion fund

2 659

2 715

2 789

2 839

5 682

5 194

6 094

3.	INTERNAL POLICIES

6 031

6 272

6 558

6 796

8 722

9 012

9 385

4.	EXTERNAL ACTIONS

4 627

4 735

4 873

4 972

5 082

5 119

5 269

5.	ADMINISTRATION(3)

4 638

4 776

5 012

5 211

5 983

6 185

6 528

RESERVES

906

916

676

434

442

446

458

Monetary reserve

500

250

Emergency aid reserve

203

208

213

217

221

223

229

Guarantee reserve

203

208

213

217

221

223

229

7.	PRE-ACCESSION STRATEGY

3 174

3 240

3 328

3 386

3 455

3 472

3 566

Agriculture

529

540

555

564

Pre-accession structural instrument

1 058

1 080

1 109

1 129

PHARE (applicant countries)

1 587

1 620

1 664

1 693

8.	COMPENSATION

1 410

1 305

1 074

TOTAL APPROPRIATIONS FOR COMMITMENTS

93 792

97 189

100 672

102 145

115 434

119 419

123 515

TOTAL APPROPRIATIONS FOR PAYMENTS

91 322

94 730

100 078

102 767

111 380

114 060

119 112

Ceiling, appropriations for payments as % of GNI (ESA 95)

1,07 %

1,08 %

1,11 %

1,09 %

1,08 %

Margin for unforeseen expenditure

0,17 %

0,16 %

0,13 %

0,15 %

0,16 %

Own resources ceiling

1,24 %

Table 2b: Revised financial perspective (EU-25) at current prices

(including budgetary implications of a political settlement in Cyprus)

(EUR million)

Commitment appropriations

Current prices

2000

2001

2002

2003

2004

2005

2006

1.	AGRICULTURE

41 738

44 530

46 587

47 378

49 297

51 437

52 615

1a	Common agricultural policy

37 352

40 035

41 992

42 680

42 772

44 608

44 858

1b	Rural development

4 386

4 495

4 595

4 698

6 525

6 829

7 757

2.	STRUCTURAL ACTIONS

32 678

32 720

33 638

33 968

41 094

42 528

44 746

Structural funds

30 019

30 005

30 849

31 129

35 395

37 319

38 632

Cohesion fund

2 659

2 715

2 789

2 839

5 699

5 209

6 114

3.	INTERNAL POLICIES

6 031

6 272

6 558

6 796

8 737

9 027

9 401

4.	EXTERNAL ACTIONS

4 627

4 735

4 873

4 972

5 082

5 119

5 269

5.	ADMINISTRATION(4)

4 638

4 776

5 012

5 211

5 983

6 185

6 528

RESERVES

906

916

676

434

442

446

458

Monetary reserve

500

250

Emergency aid reserve

203

208

213

217

221

223

229

Guarantee reserve

203

208

213

217

221

223

229

7.	PRE-ACCESSION STRATEGY

3 174

3 240

3 328

3 386

3 455

3 472

3 566

Agriculture

529

540

555

564

Pre-accession structural instrument

1 058

1 080

1 109

1 129

PHARE (applicant countries)

1 587

1 620

1 664

1 693

8.	COMPENSATION

1 410

1 305

1 074

TOTAL APPROPRIATIONS FOR COMMITMENTS

93 792

97 189

100 672

102 145

115 500

119 519

123 657

TOTAL APPROPRIATIONS FOR PAYMENTS

91 322

94 730

100 078

102 767

111 380

114 060

119 112

Ceiling, appropriations for payments as % of GNI (ESA 95)

1,07 %

1,08 %

1,11 %

1,09 %

1,08 %

Margin for unforeseen expenditure

0,17 %

0,16 %

0,13 %

0,15 %

0,16 %

Own resources ceiling

1,24 %

(1) The expenditure on pensions included under the ceiling for this heading is calculated net of staff contributions to the pension scheme, up to a maximum of EUR 1 100 million at 1999 prices for the period 2000 to 2006.

(2) The expenditure on pensions included under the ceiling for this heading is calculated net of staff contributions to the pension scheme, up to a maximum of EUR 1 100 million at 1999 prices for the period 2000 to 2006.

(3) The expenditure on pensions included under the ceiling for this heading is calculated net of staff contributions to the pension scheme, up to a maximum of EUR 1 100 million at 1999 prices for the period 2000 to 2006.

(4) The expenditure on pensions included under the ceiling for this heading is calculated net of staff contributions to the pension scheme, up to a maximum of EUR 1 100 million at 1999 prices for the period 2000 to 2006.