PURPOSE: final adoption of amending budget 4/2005.

LEGISLATIVE ACT: 2005/700/EC, Euratom.

CONTENT: The European Parliament definitively adopted amending budget 4/2005 of the European Union, in line with its resolution of 7 September 2005 (Please refer to summary of the resolution).

This amending budget enters in the 2005 budget EUR 2.7 billion of surplus from the 2004 budget (credits not used in 2004 under several budgetary headings).

The European Parliament adopted the resolution drafted by Salvador GARRIGA POLLEDO (EPP-ED, ES) by 606 votes in favour to 16 against and 44 abstentions and decided to accept Draft amending budget No 3/2005 unamended. (Please see the summary of 14/07/2005.)

Parliament welcomed the positive development compared to last year, when the real surplus of the 2003 budget due to underspending amounted to nearly EUR 10 500 million taking into account the reduction of EUR 5 000 million resulting from Amending budget No 6/2003 following a large overestimation of payments in the Structural Funds. Nevertheless, it is dissatisfied with the additional surplus of EUR 2.7 billion for the 2004 budget. The challenges that the European Union is facing today cannot justify such an underspending, in particular in Headings 3 and 4 of the financial perspective as well as pre-accession aid. Parliament therefore expects a better level of implementation to be obtained in 2005 in order to reduce significantly the level of EU surplus.

The European Parliament adopted the resolution drafted by Salvador GARRIGA POLLEDO (EPP-ED, ES) by 606 votes in favour to 16 against and 44 abstentions and decided to accept Draft amending budget No 3/2005 unamended. (Please see the summary of 14/07/2005.)

Parliament welcomed the positive development compared to last year, when the real surplus of the 2003 budget due to underspending amounted to nearly EUR 10 500 million taking into account the reduction of EUR 5 000 million resulting from Amending budget No 6/2003 following a large overestimation of payments in the Structural Funds. Nevertheless, it is dissatisfied with the additional surplus of EUR 2.7 billion for the 2004 budget. The challenges that the European Union is facing today cannot justify such an underspending, in particular in Headings 3 and 4 of the financial perspective as well as pre-accession aid. Parliament therefore expects a better level of implementation to be obtained in 2005 in order to reduce significantly the level of EU surplus.

The committee adopted the report by Salvador GARRIGA POLLEDO (EPP-ED, ES) approving Draft amending budget No. 3/ 2005 ( surplus 2004) unamended. Although they welcomed the fact that the surplus for the 2004 budget represented an improvement compared with 2003, MEPs nevertheless expressed dissatisfaction with the EUR 2.7 billion surplus and said that "the challenges that the European Union is facing today cannot justify such an underspending, in particular in Headings 3 and 4 of the financial perspective as well as pre-accession aid". They called for a better level of implementation to be obtained in 2005 so that the surplus could be significantly reduced.

To recall, in May 2005, the Commission submitted to the Council Preliminary Draft Amending Budget (PDAB) No 4 for the financial year 2005 concerning the entry in the budget of the surplus resulting from the implementation of the budget year 2004.

On 24 June 2005, the Council established Draft Amending Budget No. 3 for the financial year 2005, by adopting the Preliminary Draft Amending budget No. 4 as set out in the technical annex to this explanatory memorandum (Please refer to Council document 09760/2005 ADD1) .

To recall, in May 2005, the Commission submitted to the Council Preliminary Draft Amending Budget (PDAB) No 4 for the financial year 2005 concerning the entry in the budget of the surplus resulting from the implementation of the budget year 2004.

On 24 June 2005, the Council established Draft Amending Budget No. 3 for the financial year 2005, by adopting the Preliminary Draft Amending budget No. 4 as set out in the technical annex to this explanatory memorandum (Please refer to Council document 09760/2005 ADD1) .

PURPOSE : to present the preliminary draft amending budget (PDAB) No 4/2005 aiming to budget the surplus resulting from the implementation of the budget year 2004.

CONTENT : this PDAB 4/2005 aims at budgeting the surplus resulting from the implementation of the budget year 2004. As provided for in the Financial Regulation applicable to the general budget of the European Communities, under Article 15, it is the only subject of this PDAB and it is submitted within 15 days following the submission of the provisional accounts, which took place on 29 April 2005.

The implementation of the budget year 2004 shows a surplus of EUR 2 736 707 563, 42 shared between a competent resulting from an over-registering in revenue (EUR + 1 596 597 856, 35), an under-spending in expenditure (EUR + 1 190 156 753, 22) and a negative balance of monetary exchange (EUR – 50 047 046, 15).

The budgeting of the surplus will diminish accordingly the global contribution of the Member States to the financing of the EU budget. This global decrease by Member States will also be influenced by the updated own resources forecast including the updated amount of the UK correction and the budgeting of the surplus of the guarantee funds for external loans. These forecasts will be the subject of a separate PDAB to be presented by the Commission at the end of May, which is expected to change further the amounts of the contributions by country.

PURPOSE : to present the preliminary draft amending budget (PDAB) No 4/2005 aiming to budget the surplus resulting from the implementation of the budget year 2004.

CONTENT : this PDAB 4/2005 aims at budgeting the surplus resulting from the implementation of the budget year 2004. As provided for in the Financial Regulation applicable to the general budget of the European Communities, under Article 15, it is the only subject of this PDAB and it is submitted within 15 days following the submission of the provisional accounts, which took place on 29 April 2005.

The implementation of the budget year 2004 shows a surplus of EUR 2 736 707 563, 42 shared between a competent resulting from an over-registering in revenue (EUR + 1 596 597 856, 35), an under-spending in expenditure (EUR + 1 190 156 753, 22) and a negative balance of monetary exchange (EUR – 50 047 046, 15).

The budgeting of the surplus will diminish accordingly the global contribution of the Member States to the financing of the EU budget. This global decrease by Member States will also be influenced by the updated own resources forecast including the updated amount of the UK correction and the budgeting of the surplus of the guarantee funds for external loans. These forecasts will be the subject of a separate PDAB to be presented by the Commission at the end of May, which is expected to change further the amounts of the contributions by country.