A4-0028/94

Resolution on the financing of the CFSP

The European Parliament,

-having regard to Title I (in particular Articles B and C) and Title V of the Treaty on European Union,

-having regard to Article 199, second paragraph, of the EC Treaty and Article J.11(2) of the Treaty on European Union,

-having regard to the working documents drawn up on behalf of the Committee on Budgets and the Committee on Foreign Affairs and Security during the previous parliamentary term (PE 208.193, PE 209.228 and PE 209.228/Am.),

-having regard to the Interinstitutional Agreement of 29 October 1993 on budgetary discipline and improvement of the budgetary procedure,

-having regard to the Financial Regulation,

-having regard to Rule 148 of its Rules of Procedure,

-having regard to the report of the Committee on Budgets and the opinions of the Committee on Foreign Affairs, Security and Defence Policy and the Committee on Budgetary Control (A4-0028/94),

A.whereas the European integration process requires definite progress in developing a common foreign and security policy (CFSP); whereas many citizens of the Union and many of its external partners expressly expect and are calling for this,

B.whereas, pursuant to Article J.3 of the Treaty on European Union, substantive responsibility for the CFSP rests with the European Council and the Council; whereas, on the other hand, Article J.11(2) vests responsibility for the budget for the CFSP in the two arms of the budgetary authority, namely the Council and Parliament; whereas, however, Parliament has the last word with regard to this expenditure, it being explicitly classified as non-compulsory expenditure; whereas there is therefore a discrepancy between responsibility for the substance of the CFSP and budgetary powers in this policy area,

C.whereas ultimately this discrepancy is attributable to the pillar structure of the EU, in which the CFSP constitutes what is known as the second pillar, to be developed through intergovernmental cooperation,

D.whereas this discrepancy could lead to attempts by some Member States to renationalize the CFSP,

E.whereas such a situation might reinforce the adverse impression which many European citizens already have of the Union; whereas the citizens of the Union are not interested in lengthy debates about overlapping powers but want a Union that is democratic, functions efficiently and accepts its responsibility for the CFSP as well,

F.whereas the definition of operational and administrative expenditure on the CFSP and the specific arrangements for entering them in the budget are of paramount importance,

G.whereas the budgetary arrangements adopted by the Council for humanitarian aid to Mostar are inappropriate,

H.whereas the fact that this resolution is concerned only with the budgetary aspect of the financing of the CFSP does not detract from the need for Parliament to consider the institutional aspect of this financing as well; whereas it would be worthwhile for Parliament to seek an Interinstitutional Agreement on the matter before 1 January 1995,

1.Believes that CFSP joint actions should be financed from the EU budget;

2.Recalls in this connection that, if the Council decides unanimously, pursuant to Article J.11(2) of the Treaty on European Union, to finance CFSP joint actions from the EU budget, the current budgetary procedure (Article 203 of the EC Treaty) will apply in every respect in accordance with the Treaties, the Financial Regulation and the Interinstitutional Agreement; concludes that the Commission must therefore be responsible for implementing the CFSP budget;

3.Takes the view that it must be able to exercise in full its powers with regard to the allocation and use of resources for joint actions under the CFSP and to scrutinize such expenditure;

4.Recalls that, under Article J.7 of the Treaty on European Union, it has the right to be consulted about the CFSP; urges that this right should not be equated merely with a right to be kept informed; takes the view that the Commission has a special responsibility in this connection pursuant to Articles J.5, J.7 and J.9; insists therefore that an agreement be reached between the institutions concerning this right so that it may be properly exercised, which would at the same time facilitate consideration of requests for the transfer of appropriations required to finance joint actions;

5.Takes the view that arrangements for the financing of the CFSP must be based on four principles: efficiency and speed; transparency and clear information; budgetary implications to be specified in the greatest possible detail; and cohesion with other forms of external policy;

with regard to budgetization

6.Draws attention to the fact that the financial perspective annexed to the Interinstitutional Agreement of 29 October 1993 does not include sufficient resources for joint actions under the CFSP as currently conceived; calls therefore for appropriate resources to be made available for joint CFSP financing on the occasion of a modification (adjustment or revision) of the financial perspective;

7.Recalls the resolutions and declarations recorded in the minutes of the Council meeting on 22 April 1970; would regard any arbitrary decision to enter administrative and/or operational expenditure (on carrying out CFSP joint actions) in Section II (Council) of the EU budget as a clear indication that the Council no longer considers itself bound by the so-called Gentlemen's Agreement;

8.Proposes therefore that the following structure be adopted for CFSP expenditure:

-administrative expenditure for the purpose of political decision-making in the Council (e.g. fact-finding missions), which must be incurred before the Council takes a decision to allocate funds, should be financed from Section II (Council) of the EU budget;

-administrative expenditure incurred after the Council has taken a decision should be financed from Category V, Section III A, of the EU budget;

-such operational expenditure as is chargeable to the EU budget should be financed from Category IV (external policy), Section III B, Chapter 8, of the EU budget;

9.Considers that all CFSP joint actions, including the humanitarian action which has already begun in Mostar, must be described as such in the EU budget, in order to distinguish them from other political action in the field of external relations or humanitarian aid;

10.Makes the following proposals regarding the specific budgetization of CFSP joint actions:

(a)Section III of each budget should include a CFSP reserve. Joint CFSP actions approved by the Council should be financed from the respective CFSP budget heading(s). If supplementary financing is required, the Council must request a transfer of appropriations via the Commission, and the request should be subject to the normal budgetary procedure;

(b)joint actions which are being prepared and on which a decision is anticipated in the course of the financial year concerned, and action rendered necessary by the development of the international political situation, should be entered in a heading entitled 'Other joint actions' with a token entry; they should be financed from the CFSP reserve;

(c)if the appropriations provided for both under specific budget headings and in the CFSP reserve have been exhausted, further action shall be financed within the framework of a trialogue as provided for in the Interinstitutional Agreement;

11.Proposes to examine the institutional aspects as part of the consultations on an agreement between the institutions on arrangements for the CFSP;

12.Instructs its Committee on Budgets to take account of the opinion of the Committee on Foreign Affairs, Security and Defence Policy before approving the financial statement;

13.Endorses the call for the existing budgetary scrutiny to apply in full to the CFSP and to include both supervision of the implementation of current CFSP expenditure and consideration of previous budgets in the context of the discharge procedure;

14.Instructs its President to forward this resolution to the Council, the Commission and the governments and parliaments of the Member States.