A3-0138/94

Resolution on the guidelines for the 1995 budget Section III - Commission

The European Parliament,

-having regard to the report of the Committee on Budgets (A3-0138/94),

A.whereas, unlike in the case of the 1993 and 1994 budgets, the negotiations for the 1995 budget will take place entirely in the context of the new Interinstitutional Agreement and the financial perspective,

B.whereas the Council's decision to increase own resources, in particular to 1.21% of GNP in 1995, should take effect before the end of the year,

C.whereas, at present, Community GNP for 1995 is put at ECU 5963.8 billion, the 1994-1995 deflator is estimated at 1.8% and economic growth at 3.1%,

D.whereas the financial perspective earmarks no appropriations to cover enlargement; whereas those appropriations will be taken into account after the revision of the financial perspective, in accordance with Article 24 of the Interinstitutional Agreement,

E.whereas it is necessary to take into account in the budget the Community programme of action on the environment and sustainable and environmentally acceptable development, the approach and strategy for which were approved by the Council and the governments of the Member States in the resolution of 1 February 1993, and the plan of action adopted by the European Council in Brussels on 10 and 11 October 1993 in the light of the Commission's White Paper, in particular Part IV thereof, entitled 'Towards a new model of development',

1.Points out that the 1995 procedure will be governed by the new provisions laid down in the Interinstitutional Agreement of October 1993, in particular those concerning interinstitutional cooperation (ad hoc procedure for compulsory expenditure);

2.Notes that the macroeconomic forecasts suggest that it will not be possible to finance all the payments provided for in the financial perspective and that there will be a deficit of roughly ECU 320 m between the ceiling of revenue from own resources and the expenditure in the financial perspective;

3.Agrees with the Member States about the need for budgetary rigour in the present economic circumstances, but warns the Council that it will not tolerate cuts being made in the Community budget so as to achieve savings in national budgets;

4.Takes the view that this deficit must not be offset solely by means of cuts in differentiated appropriations and is prepared to examine, under the trialogue procedure provided for in Annex II.A to the Interinstitutional Agreement, arrangements to ensure that the revenue ceiling is observed;

5.Draws attention to the provisions of the Treaty on European Union regarding the financing of cooperation on justice and home affairs and the CFSP; calls on the Council to initiate a conciliation procedure on the budgetization of this expenditure;

6.Calls on the Commission and Council to integrate the budget headings of the ECSC Treaty, with the corresponding amounts, into the preliminary draft budget and the draft budget;

7.Points out that Article 24 of the Interinstitutional Agreement stipulates that any enlargement of the Community will necessitate a revision of the financial perspective and that, accordingly, any speeding up of the timetable for enlargement must take into account the revision of the financial perspective before the appropriations to cover that enlargement are entered in budgets; calls on the Institutions to highlight all the additional appropriations in connection with the enlargement of the Community to be entered as from 1995;

As regards agriculture

8.Deplores the fact that farm spending is continuing to increase to the full extent allowed by the guideline, despite the risk that the guideline may be exceeded, and that the Council is taking no practical steps to reduce spending;

9.Expresses concern at the trend in certain countries towards reductions in Community spending matched by increases in national spending; takes the view that a renationalization of the CAP may introduce factors which distort competition;

10.Calls on the Commission to submit sectoral spending forecasts and to outline the measures it intends to take to prevent expenditure from exceeding those sectoral forecasts;

As regards the Structural Funds

11.Notes that there will be a significant increase (+ 8%) in Structural Fund resources; regrets, however, the Commission's slowness in submitting the Community initiative programmes;

12.Points out that these Community programmes should be used, at the Commission's instigation, to fund measures in the sectors highlighted in Parliament's resolution of 28 October 1993 on the future of Community initiatives under the Structural Funds;

As regards internal policies

13.Takes the view that, in the light of the forthcoming adoption of the Fourth Framework Programme of research, sufficient appropriations must be provided in 1995 to ensure its effective launch and the implementation of the various specific programmes which now encompass all aspects of Community research policy;

14.Takes the view that a solution must be found for programmes such as THERMIE, which are vital to the industrial policy of the European Union;

15.Points out that in the 1994 budget it provided for the funding of a measure to assist SMUs with a view to encouraging job creation which should be consolidated in 1995 so as to help boost economic recovery in the Member States;

16.Regards it as essential that measures to combat unemployment and foster economic recovery should be stepped up in 1995; fully endorses the analysis and solutions put forward in the Commission White Paper; regards it as imperative that the Institutions should take every possible step to secure, from the financial markets, the funding required to launch these measures;

17.Is prepared to enter in the budget all the appropriations available; although these appropriations will make up only a tiny proportion of the budget, nevertheless proposals designed to encourage other forms of financing should be put forward in the budget procedure;

18.Recognizes the legitimacy conferred on Community policies on education, training, youth and culture by the new Articles 125, 126 and 128 of the EC Treaty and points out that they therefore imply the recognition of the contribution of these policies to the realization of a People's Europe, to economic and social cohesion and to the strengthening of the European Union; takes the view, in consequence, that in order to meet these new challenges, a large number of education and youth programmes which are due to expire in 1994 must be evaluated and constitute one of the budgetary priorities for the 1995 financial year;

19.Calls on the Commission to outline clearly the appropriations which will be earmarked for the Community's satellite agencies so that the work carried out can be assessed in relation to the human resources employed;

As regards external policies

20.Points out that appropriations were entered in the 1994 budget to fund joint measures adopted by the Council in connection with the CFSP; is prepared to consider the decisions which the Council plans to take within the framework of the 1995 budget under the terms of Title V of the Treaty on European Union;

21.Points out that the European Union must fulfil the undertakings it gave in Rio to increase its efforts in the field of international environmental policy and the policy with regard to tropical forests, for example;

22.Calls for the financial assistance for third countries and, in particular, NGOs to be maintained;

23.Resolves to assess the progress made by the Commission in implementing the appropriations earmarked for the PHARE and TACIS programmes before deciding what priority to attach to those programmes;

As regards administrative expenditure

24.Takes the view that the Commission should outline how it intends to adjust its administrative organization to cope with enlargement;

25.Points out that in 1995 it will be possible to continue the policy of converting appropriations into posts only if a genuine reduction in external staff is achieved;

26.Reiterates its determination to complete the process of transferring the Structural Fund and research mini-budgets to Part A of the budget;

27.Takes the view that the progress made in the sphere of interinstitutional cooperation is completely unsatisfactory and calls on the Commission to submit practical proposals during the 1995 budget procedure;

28.Takes the view that the institutions should reach agreement on a coherent property policy and calls on the interinstitutional working party on property problems to submit a report during the budget procedure;

29.Reaffirms its support for the European Schools and its determination to promote their development, with particular regard to:

-the take-up of new pupils after enlargement of the Community;

-the participation of the Member States in the funding of part-time teachers and a more precise definition of the financial obligations of the host countries and the school sponsors;

-a reform of the tax compensation arrangements;

-expansion of the information and careers advice centres for pupils and funding for the training of volunteer teachers involved in counselling;

-implementation of the budget decisions on the involvement of the budgetary authority in the drawing-up of the budget and on the elimination of discriminatory recruitment practices and the harmonization of recruitment procedures;

30.Calls on the Commission to observe to the letter the guidelines set out above when drawing up its preliminary draft budget for 1995;

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