PURPOSE: final adoption of amending budget 3/2007.

LEGISLATIVE ACT: 2007/524/EC, Euratom.

CONTENT: the European Parliament has definitively concluded the amending budget 3/2007 of the European Union, in accordance with its resolution adopted on 7 June 2007. (Please refer to the summary of the resolution).

This amending budget aims to enter in the 2007 budget the surplus of the 2006 financial year, amounting to EUR 1 847 631 711 .

The European Parliament adopted a resolution drafted by James Elles (EPP-ED, UK) and welcomed the positive development in budget implementation over the last few years. Parliament decided to accept Council's Draft amending budget No 3/2007 which aims to enter in the 2007 budget the surplus of the 2006 financial year, amounting to EUR 1 847 631 711 .

In doing so, the European Parliament highlighted that under-spending of payment appropriations, compared to the years before, has decreased to EUR 949 899 477,07 (about 0.9 %) of the total EU 2006 budget. Compared with 2005, there have been considerable general improvements in the uptake of allocations in the fields of pre-accession strategy. However, there is still some room for improvement, especially in the field of agriculture, where the amount unused, compared with 2005, has gone up to EUR 426 million representing 0.85% of the total allowance (0.3 % in 2005).

Lastly, it called on the Commission to continue its efforts to fully implement the budget, which is even more important in view of the limited resources that will be available under the new financial framework 2007 – 2013.

On 13 April 2007, the Commission submitted to the Council Preliminary Draft Amending Budget (PDAB) No. 4 to the general budget for 2007 concerning the budgeting of the surplus resulting from the implementation of the budget year 2006.

The implementation of the budget year 2006 shows a surplus of EUR 1 847 631 711 resulting from:

a) an over-registering in revenue (+ EUR 914 569 139.79) divided by Title as follows:

Own resources: - EUR 166 233 480.84 Surpluses, balances and adjustments: - EUR 9 031 573.37 Revenue accruing from persons working with the institutions and with other Community bodies: - EUR 176 719 882.26 Revenue accruing from the administrative operation of the institutions: + EUR 154 572 388.21 Contributions and refunds in connection with Community agreements and programmes: + EUR 1 071 659 839.57 Interest on late payment and fines: + EUR 4 769 764.21 Borrowing and lending operations: + EUR 12 773 151.63 Miscellaneous revenue: + EUR 22 778 932.64

b) an under-spending of payment appropriations (+ EUR 949 899 477.07) divided by Heading of the Financial Perspective as follows:

Agriculture: + EUR 426 126 937.88 Structural operations: + EUR 53 899 651.71 Internal policies - EUR 121 848 423.36 External action + EUR 154 148 357.81 Administration + EUR 51 364 318.22 Reserves + EUR 258 360 000.00 Pre-accession aid +EUR 127 848 634.81 Compensation: +EUR 0.00

c) a negative balance of monetary exchange (- EUR 16 836 905.86).

On 14 May 2007, the Council established Draft Amending Budget No. 3 to the budget for 2007 as submitted by the Commission in its Preliminary Draft Amending Budget No. 4 and set out in the technical annex to this explanatory memorandum.

On 13 April 2007, the Commission submitted to the Council Preliminary Draft Amending Budget (PDAB) No. 4 to the general budget for 2007 concerning the budgeting of the surplus resulting from the implementation of the budget year 2006.

The implementation of the budget year 2006 shows a surplus of EUR 1 847 631 711 resulting from:

a) an over-registering in revenue (+ EUR 914 569 139.79) divided by Title as follows:

Own resources: - EUR 166 233 480.84 Surpluses, balances and adjustments: - EUR 9 031 573.37 Revenue accruing from persons working with the institutions and with other Community bodies: - EUR 176 719 882.26 Revenue accruing from the administrative operation of the institutions: + EUR 154 572 388.21 Contributions and refunds in connection with Community agreements and programmes: + EUR 1 071 659 839.57 Interest on late payment and fines: + EUR 4 769 764.21 Borrowing and lending operations: + EUR 12 773 151.63 Miscellaneous revenue: + EUR 22 778 932.64

b) an under-spending of payment appropriations (+ EUR 949 899 477.07) divided by Heading of the Financial Perspective as follows:

Agriculture: + EUR 426 126 937.88 Structural operations: + EUR 53 899 651.71 Internal policies - EUR 121 848 423.36 External action + EUR 154 148 357.81 Administration + EUR 51 364 318.22 Reserves + EUR 258 360 000.00 Pre-accession aid +EUR 127 848 634.81 Compensation: +EUR 0.00

c) a negative balance of monetary exchange (- EUR 16 836 905.86).

On 14 May 2007, the Council established Draft Amending Budget No. 3 to the budget for 2007 as submitted by the Commission in its Preliminary Draft Amending Budget No. 4 and set out in the technical annex to this explanatory memorandum.

The committee adopted the report by James ELLES (EPP-ED, UK) approving unamended the Council's draft amending budget No. 3 for 2007.

PURPOSE: to present the Preliminary Draft Amending Budget (PDAB) No 4 to the 2007 general budget.

CONTENT: the present Preliminary Draft Amending Budget No 4/2007 aims at budgeting the surplus resulting from the implementation of the budget year 2006. As provided for in the Financial Regulation applicable to the general budget of the European Communities, under Article 15 § 3, it is the only subject of this PDAB and it has to be submitted within 15 days following the submission of the provisional accounts, which took place on 30 March 2007.

The implementation of the budget year 2006 shows a surplus of EUR 1 847 631 711,00 shared between:

a component resulting from an over-registering in revenue (+ EUR 914 569 139,79); an under-spending in expenditure (+ EUR 949 899 477,07); a negative balance of monetary exchange (- EUR 16 836 905,86).

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 State wil l 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 fund for external loans.

These forecasts will be the subject of a separate Preliminary Draft Amending Budget, to be presented by the Commission at the beginning of June 2007, which is expected to change further the amounts of the contributions by country.

PURPOSE: to present the Preliminary Draft Amending Budget (PDAB) No 4 to the 2007 general budget.

CONTENT: the present Preliminary Draft Amending Budget No 4/2007 aims at budgeting the surplus resulting from the implementation of the budget year 2006. As provided for in the Financial Regulation applicable to the general budget of the European Communities, under Article 15 § 3, it is the only subject of this PDAB and it has to be submitted within 15 days following the submission of the provisional accounts, which took place on 30 March 2007.

The implementation of the budget year 2006 shows a surplus of EUR 1 847 631 711,00 shared between:

a component resulting from an over-registering in revenue (+ EUR 914 569 139,79); an under-spending in expenditure (+ EUR 949 899 477,07); a negative balance of monetary exchange (- EUR 16 836 905,86).

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 State wil l 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 fund for external loans.

These forecasts will be the subject of a separate Preliminary Draft Amending Budget, to be presented by the Commission at the beginning of June 2007, which is expected to change further the amounts of the contributions by country.