PURPOSE : to adopt amending budget 8/2005.

LEGISLATIVE ACT : 2006/5/EC, Euratom.

CONTENT : the European Parliament has finally adopted amending budget No 8 of the European Union for the financial year 2005 in accordance with its resolution dated 13 December 2005 (please refer to the summary of the resolution).

This amending budget reduces, by EUR 3 868 billion, the total amount of contributions from the Member States to the 2005 budget.

Budget 2006/5
OJ L 009 13.01.2006, p. 0073-0144

SP(2006)0053

Results of vote in Parliament

Debate in Parliament

The European Parliament adopted a resolution drafted by Salvador GARRIGA POLLEDO (EPP-ED, ES) approving the Council's Draft Amending Budget No. 8/2005 unamended.

T6-0497/2005

A6-0397/2005

A6-0397/2005

Preliminary Draft Amending Budget 8/2005 revised: On 6 October 2005, the Commission forwarded to the Council Preliminary Draft Amending Budget (PDAB) No. 8 to the general budget for 2005. At that time, the figures therein were still to be considered provisional. Thus, the Commission proposed to present the exact amounts affecting the revenue side and the changes to the general statement of revenue by means of an Amending Letter to this PDAB at a later stage of the procedure, together with the updated expenditure figures related to payment appropriations for Structural Funds. The final amounts to be taken into consideration were communicated to the Council on 16 November 2005.

The final version of this PDAB takes into account an increase in the forecast of revenue and changes in appropriations for sub-Heading 1a and Heading 2 on the expenditure side.

The total increase in the forecast of revenue (EUR 3 218 million) results from revisions of:

- the forecasts of VAT and GNI balances (EUR 2 451 million concerning Chapters 31 and 32 of the revenue side of the budget);

- the forecasts of traditional own resources (EUR 300 million);

- the forecasts of other revenue, namely, repayment of unused Community aid (EUR 360 million concerning Items 6150 and 6157) and interest on late payments and fines (EUR 107 million concerning Chapters 70 and 71).

On the expenditure side, the Commission proposes:

- to decrease the appropriations for the EAGGF-Guarantee (sub-Heading 1a) by EUR 650 million;

- to adapt the different budget lines related to Structural Actions within Heading 2 without changing the overall amount of appropriations available.

According to the final Commission proposal on PDAB No. 8/2005, total contributions from Member States to the 2005 budget will be reduced by EUR 3 868 million . Out of this amount, EUR 2 751 million concerning revisions of the forecasts of VAT and GNI balances, and of traditional own resources, results from technical adjustment.

The Council’s draft amending budget 8/2005 : On 1 December 2005, the Council established on this basis the Draft Amending Budget No. 8 for the financial year 2005 as set out in the technical annex to the draft amending budget 8/2005 (see Council document 14861/05 ADD). It covers for the most part the Commission’s revised proposal as described above.

14861/2005

The committee adopted the report by Salvador GARRIGA POLLEDO (EPP-ED, ES) approving the Council's Draft Amending Budget No. 8/2005 unamended.

PE365.086

PURPOSE : to present the preliminary draft amending budget No 8 to the 2005 budget for exceptional reasons.

CONTENT : The Commission presents this Preliminary Draft Amending Budget No 8 for the year 2005 to take into account the following exceptional circumstances:

-the need to budget an exceptional increase in the forecast of revenue, in particular for the revision of the forecasts of VAT and GNI balances (EUR 2 600 million);

-the need for an increase of payment appropriations for most of the budget lines in heading 2 (EUR 650 million), after taking into account redeployments from other headings proposed in the global transfer.

Additionally, the Commission proposes the modification of the remarks of budget line 17 04 02 - Other measures in the veterinary, animal welfare and public-health field – by adding Regulation 178/2002/EC as legal base to this budget line.

Increase in the forecast of revenue: the Commission proposes to revise the forecasts of VAT and GNI balances on the basis of the available information by an increase of EUR 2 600 million. These modifications concern chapters 31 and 32 of the revenue side of the budget. Other revenue concerns repayment of unused Community aid (where EUR 360 million is proposed to be budgeted) and Interest on late payments and fines (with an additional amount of EUR 200 million).

Heading 2: Increase of payment appropriations for the structural funds: The Budget for 2005 was adopted with a reduction of EUR 3 billion in payment appropriations for heading 2 relative to the Commission’s proposal, together with a declaration on payment appropriations for heading 2. In essence, this stated that if the execution of payment appropriations for the Structural Funds exceeded 40% the Commission would present as soon as possible a PDAB to the budgetary authority. Of the EUR 1 040 million required to reinforce the lines of heading 2, EUR 390 million can be re-allocated from other headings in the context of the Global Transfer, in order to reinforce the EAGGF line 05 04 02 01 by EUR 190 million and the ESF line 04 02 06 with EUR 200 million. This decreases the net reinforcement required in heading 2 to EUR 650 million.

This proposal contains a table shows the changes sought in heading 2 lines by means of this PDAB.

SEC(2005)1226
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