PURPOSE: final adoption of the general budget of the European Union for the financial year 2009.

LEGISLATIVE ACT: 2009/165/EC, Euratom.

CONTENT: the general budget of the European Union for the financial year 2009 has been finally adopted in accordance with the budgetary procedure ended on 18 December 2008. The Union’s budget is therefore adopted in accordance with the priorities set out by the budgetary authority and the vote in Parliament’s second reading (please see the summary of Parliament’s resolution of 18.12.2008).

The 2009 budget is the second one to be issued under the 2007-2013 multiannual financial framework which covers the period until 2013.

In 2009, the biggest share of the EU budget – 45% or EUR 60 billion - will go to research, innovation, employment and regional development programmes, combining short and longer-term measures to help Europe respond to the current economic crisis as quickly and effectively as possible .

The heading ‘Administration’ which includes the expenditure of all the EU institutions, represents around 5.8% of the total EU budget ( EUR 7.7 billion in commitments and payments).

In terms of that expenditure, the budget of the other institutions:

European Parliament Council Court of Justice Court of Auditors European Economic and Social Committee Committee of the Regions European Ombudsman European Data Protection Supervisor

represents 37.1% of the total budget (or EUR 2 577 189 874 ).

PURPOSE: to present amending letter No 3/2009 to the preliminary draft EU budget 2009 (Section II – Council).

CONTENT: this letter of amendment, budgetarily neutral , covers the expenditure relating to the Council for the financial year 2009.

The draft letter of amendment comprises the following elements:

a) a sum of EUR 260 000 in non-differentiated appropriations, to enable the General Secretariat of the Council to engage a special adviser to act as secretary-general to the Reflection Group;

b) a sum of EUR 220 000 in non-differentiated appropriations, to cover the expense of travel to Brussels by members of the Reflection Group and their daily subsistence allowances during meetings;

c) a sum of EUR 200 000 in non-differentiated appropriations, to cover the cost of interpretation made available to the members of the Reflection Group as necessary;

d) a sum of EUR 300 000 in non-differentiated appropriations, to cover the cost of seminars and studies by external experts in line with the Group's mandate as adopted by the European Council;

e) a sum of EUR 30 000 in non-differentiated appropriations, to cover the costs of representation, and a sum of EUR 50 000 in non-differentiated appropriations, to cover other operating expenditure.

Material and logistical support for Reflection Group meetings (Secretariat officials, offices and meeting rooms) would be provided by the General Secretariat of the Council at no additional cost.

The Reflection Group's total operating expenditure for 2009 would thus be EUR 1 060 000 .

It is proposed that this sum be taken from the contingency reserve (EUR 2.5 million) which is included in the preliminary draft budget for 2009.

The European Parliament adopted, by 514 votes to 32 with 40 abstentions, a resolution on the draft EU 2009 budget (other sections).

The report had been tabled for consideration in plenary by Janusz LEWANDOWSKI (EPP-ED, PL) on behalf of the Committee on Budgets.

General Framework : Parliament considers that the EU institutions present fully cost-based budget drafts corresponding to real needs. It also welcomes the Council's approach of using a more targeted method for establishing the draft budget as opposed to the across-the-board percentage changes previously used.

MEPs stress that, overall, there is still room for improvement and more effective use of budget resources in a number of areas such as interinstitutional cooperation, use of staff mobility and redeployment in order to keep increases in check and also demonstration of a solid grip on all expenses related to travel, allowances, translation, and especially building costs.

MEPs stress once again the importance of continuous parliamentary monitoring of the implementation of budgetary decisions, which is the base for the establishment of the annual budget. They are convinced that direct parliamentary control cannot but contribute to improving the quality of spending, to a more direct control of sound financial management and eventually to a re-focusing of financial support to political priorities.

On a financial basis, MEPs have decided to leave a margin below the ceiling of heading 5 (administrative expenditure) of EUR 76 269 100, thus limiting the overall increase to 5.8%. They emphasise that this includes restoring a part of the reductions made by Council to the budget of the institutions, but only in those cases where the specific needs of each one have been justified.

The report highlights the main points as regards each institution:

Section 1 - European Parliament : MEPs stresses that its political priorities as set out in its budgetary Guidelines and Estimates resolutions of 10 April 2008 and 20 May 2008 have guided the 2009 proposals in a spirit of budgetary rigour while safeguarding the political priorities set out. They consider that the outcome is fully in line with these objectives and, notably, also corresponds to the specific requirements related to 2009 as an election year for the Parliament and the challenges related to the new Statute for Members and to the change of term. MEPs stress that budgetary changes have been brought about by the suspension of the entry into force of the Treaty of Lisbon, by the preparations for the implementation of the new Statute for Assistants, by updated forecasts for the Members' Statute and, also, by the rise in energy prices.

They recall that the overall level of its budget amounts to 19.67% of the authorised expenditure under heading 5 (administrative appropriations) of the multi-annual financial framework, i.e. it has been maintained below the self-imposed limit of 20%. They welcome the fact that this implies a further saving of EUR 900 000 million compared to its position in May 2008. At the conciliation meeting between the Bureau and the Committee on Budgets on 30 September 2008, major budgetary differences were negotiated and, in the main, resolved. However, MEPs note a few outstanding issues where no agreement could be reached, in particular as regards staffing policy. MEPS consider that it is necessary to optimally balance the distribution of human resources between core legislative activities, direct services to Members and administrative support functions, as well as making the underlying assumptions and priorities better understood. They welcome the analytical and detailed establishment plan presented.

Although MEPs are satisfied that the current proposals will contribute positively to enhancing Parliament's law-making capacities, including with regard to the issue of comitology, they maintain in reserve the appropriations related to a limited number of posts pending further analysis and clarification regarding the use, needs and optimal distribution of resources by the end of June 2009 at the latest.

MEPs are fully committed to a speedy launch of the Visitor's Centre but stress that some further work is still needed to arrive at a satisfactory and cost-effective solution. They decide to partially approve the requests at this stage, while being fully prepared to revisit this issue as soon as possible and after the necessary information has been provided.

MEPs recognise the needs of political groups in terms of staff resources in order to face increasing challenges and, in consequence, agree to provide a further 53 posts.

Given the very substantial amounts involved, MEPs consider that the budgetary authority needs to consider the financial constraints and rising costs of purchasing, maintaining and refurbishing buildings in the coming year. They ask the Bureau to submit a strategic plan by September 2009, before the 1st reading of the budget. In this light, cannot agree to an increased building reserve and decides to keep it at EUR 20 million. They also ask to receive a final report on the financial, administrative and legal implications related to the issue of asbestos and, as well, to the ceiling repair works necessary in Strasbourg.

Parliament adopted an amendment in plenary stipulating that it has decided that as from the entry into force of the Members' Statute, it should no longer be possible to acquire new rights under the Voluntary Pension Scheme . It points out that the implementing decisions, as decided by the Bureau, permit the acquiring of new rights only for members of the Fund that are re-elected, who will fall under a transitional arrangement and who are not entitled to a national or European pension linked to their mandate. Parliament believes, as a consequence, that hardly any Members will remain eligible to acquire new rights.

As regards the environment , MEPs await the results of the study on the carbon footprint of the European Parliament, which should also include the question of CO2 off-setting schemes, as requested by Parliament. They state that efforts need to be stepped up to reduce travel where possible. On mobility management, MEPs express their wish for more information detailing public transport connections from and to the Parliament and encourage the use of public transport as an alternative to car use.

Lastly, Parliament takes note of the suggestion of funding a European Parliament professorship in honour of Professor Bronisław Geremek (recently deceased former MEP) and of establishing a board, one of the purposes of which could be to grant an annual award. It calls on the Bureau to examine this suggestion and its feasibility in collaboration with the Commission, with the aim of allocating the appropriate resources.

Parliament also makes a number of comments as regards the following institutions:

Section IV - Court of Justice : MEPs recognise the importance of the new urgency procedure to be implemented by the Court, in which national courts are entitled to a reply within a much shorter deadline than was previously the case. They therefore approve the draft budget as concerns the 39 new posts in question. The Court is called upon to present an updated report on building works as a whole and its cost implications until 2013. MEPs consider that the development of the Court's normal operating budget, currently at a rate of about +2.5%, is far more encouraging and that, overall, the Court has made clear efforts to limit its expenditure growth for the 2009 exercise. They have decided to fix the general abatement rate at 3.5%, a level close to that which the Court itself is suggesting, and restores the corresponding appropriations.

Section V - Court of Auditors : MEPs welcome the proposed reinforcement of the Court's audit capacity and decide to provide the 20 associated posts in agreement with both the Court and the Council. They considers that the financing of the Court's building extension must be kept at the lowest cost possible for the taxpayer and therefore re-confirm the decision to pay for this directly through the budget, in four years, rather than masking the significantly higher costs that would result from a 25-year lease-purchase arrangement. They decide, in consequence, to frontload the maximum amount possible to the 2009 budget and, to this end, have approved an amount of EUR 55 million for this purpose.

Section VI - European Economic and Social Committee : MEPs have taken account of the Committee's concerns as regards appropriations available for staff and, considering the arguments advanced. They agree to adjust the general abatement rate to a level of 4.5%. They decide to create, in addition to the two new AD5 posts included in the Draft Budget, another two AST posts which had been rejected by the Council. MEPs also decide to place a portion of appropriations for travel and meeting expenses into reserve pending the provision by the Committee of a clear plan on how it intends to keep these costs in check.

Section VII - Committee of the Regions : MEPs take note of the fact that the Committee will need to recruit additional 'enlargement-related' staff and agrees to the new posts in the Council's draft budget. In addition to this, they can accept limited number of three further posts in order to boost its operational capacity in specific departments. They decide to introduce a general abatement rate of 4.5% noting that this is very close to the Committee's own requests while still representing a saving.

Section VIII - European Ombudsman : MEPs agree to the Council's draft budget on creating 3 new AD posts in order to strengthen the Ombudsman in dealing with an increasing number of admissible complaints. In addition to this, after hearing the Ombudsman, can also agree to 3 temporary AST posts.

Section IX - European Data Protection Supervisor : MEPs approve this section of the draft budget.

The Committee on Budgets unanimously adopted the report by Janusz LEWANDOWSKI (EPP-ED, PL) on the EU 2009 budget (other sections).

General Framework : the committee considers that the EU institutions, following its request that they present fully cost-based budget drafts corresponding to real needs. They also welcome the Council's approach of using a more targeted method for establishing the Draft Budget as opposed to the across-the-board percentage changes previously used.

They stress that, overall, there is still room for improvement and more effective use of budget resources in a number of areas such as interinstitutional cooperation, use of staff mobility and redeployment in order to keep increases in check and also demonstration of a solid grip on all expenses related to travel, allowances, translation, and especially building costs.

MEPs stress once again the importance of continuous parliamentary monitoring of the implementation of budgetary decisions, which is the base for the establishment of the annual budget. They are convinced that direct parliamentary control cannot but contribute to improving the quality of spending, to a more direct control of sound financial management and eventually to a re-focusing of financial support to political priorities.

On a financial basis, MEPs have decided to leave a margin under heading 5 . They emphasise that this includes restoring a part of the reductions made by Council to the budget of the other institutions (excluding the Commission), but only in those cases where the specific needs of each one has been justified.

The report highlights the main points as regards each institution:

Section 1 - European Parliament : MEPs stresses that its political priorities as set out in its budgetary Guidelines and Estimates resolutions of 10 April 2008 and 20 May 2008 have guided the 2009 proposals in a spirit of budgetary rigour while safeguarding the political priorities set out. They consider that the outcome is fully in line with these objectives and, notably, also corresponds to the specific requirements related to 2009 as an election year for the Parliament and the challenges related to the new Statute for Members and to the change of term. MEPs stress that budgetary changes have been brought about by the suspension of the entry into force of the Treaty of Lisbon, by the preparations for the implementation of the new Statute for Assistants, by updated forecasts for the Members' Statute and, also, by the rise in energy prices.

They recall that the overall level of its budget amounts to 19.67% of the authorised expenditure under heading 5 (administrative appropriations) of the multi-annual financial framework, i.e. it has been maintained below the self-imposed limit of 20%. They welcome the fact that this implies a further saving of EUR 900 000 million compared to its position in May 2008. At the conciliation meeting between the Bureau and the Committee on Budgets on 30 September 2008, major budgetary differences were negotiated and, in the main, resolved. However, MEPs note a few outstanding issues where no agreement could be reached, in particular as regards staffing policy. MEPS consider that it is necessary to optimally balance the distribution of human resources between core legislative activities, direct services to Members and administrative support functions, as well as making the underlying assumptions and priorities better understood. They welcome the analytical and detailed establishment plan presented.

Although MEPs are satisfied that the current proposals will contribute positively to enhancing Parliament's law-making capacities, including with regard to the issue of comitology, they maintain in reserve the appropriations related to a limited number of posts pending further analysis and clarification regarding the use, needs and optimal distribution of resources by the end of June 2009 at the latest.

MEPs are fully committed to a speedy launch of the Visitor's Centre but stress that some further work is still needed to arrive at a satisfactory and cost-effective solution. They decide to partially approve the requests at this stage, while being fully prepared to revisit this issue as soon as possible and after the necessary information has been provided.

MEPs recognise the needs of political groups in terms of staff resources in order to face increasing challenges and, in consequence, agree to provide a further 53 posts.

Given the very substantial amounts involved, MEPs consider that the budgetary authority needs to consider the financial constraints and rising costs of purchasing, maintaining and refurbishing buildings in the coming year. They ask the Bureau to submit a strategic plan by September 2009, before the 1st reading of the budget. In this light, cannot agree to an increased building reserve and decides to keep it at EUR 20 million. They also ask to receive a final report on the financial, administrative and legal implications related to the issue of asbestos and, as well, to the ceiling repair works necessary in Strasbourg.

As regards the environment , MEPs await the results of the study on the carbon footprint of the European Parliament, which should also include the question of CO2 off-setting schemes, as requested by Parliament. They state that efforts need to be stepped up to reduce travel where possible. On mobility management, MEPs express their wish for more information detailing public transport connections from and to the Parliament and encourage the use of public transport as an alternative to car use.

MEPs also make a number of comments as regards the following institutions:

Section IV - Court of Justice : MEPs recognise the importance of the new urgency procedure to be implemented by the Court, in which national courts are entitled to a reply within a much shorter deadline than was previously the case. They therefore approve the draft budget as concerns the 39 new posts in question. The Court is called upon to present an updated report on building works as a whole and its cost implications until 2013. MEPs consider that the development of the Court's normal operating budget, currently at a rate of about +2.5%, is far more encouraging and that, overall, the Court has made clear efforts to limit its expenditure growth for the 2009 exercise. They have decided to fix the general abatement rate at 3.5%, a level close to that which the Court itself is suggesting, and restores the corresponding appropriations.

Section V - Court of Auditors : MEPs welcome the proposed reinforcement of the Court's audit capacity and decide to provide the 20 associated posts in agreement with both the Court and the Council. They considers that the financing of the Court's building extension must be kept at the lowest cost possible for the taxpayer and therefore re-confirm the decision to pay for this directly through the budget, in four years, rather than masking the significantly higher costs that would result from a 25-year lease-purchase arrangement. They decide, in consequence, to frontload the maximum amount possible to the 2009 budget and, to this end, have approved an amount of EUR 55 million for this purpose.

Section VI - European Economic and Social Committee : MEPs have taken account of the Committee's concerns as regards appropriations available for staff and, considering the arguments advanced. They agree to adjust the general abatement rate to a level of 4.5%. They decide to create, in addition to the two new AD5 posts included in the Draft Budget, another two AST posts which had been rejected by the Council. MEPs also decide to place a portion of appropriations for travel and meeting expenses into reserve pending the provision by the Committee of a clear plan on how it intends to keep these costs in check.

Section VII - Committee of the Regions : MEPs take note of the fact that the Committee will need to recruit additional 'enlargement-related' staff and agrees to the new posts in the Council's draft budget. In addition to this, they can accept limited number of three further posts in order to boost its operational capacity in specific departments. They decide to introduce a general abatement rate of 4.5% noting that this is very close to the Committee's own requests while still representing a saving.

Section VIII - European Ombudsman : MEPs agree to the Council's draft budget on creating 3 new AD posts in order to strengthen the Ombudsman in dealing with an increasing number of admissible complaints. In addition to this, after hearing the Ombudsman, can also agree to 3 temporary AST posts.

Section IX - European Data Protection Supervisor : MEPs approve this section of the draft budget.

This document is to be annexed to the draft budget for 2009. in accordance with the agreements on budgetary procedure

As in previous years, this document sets out:

the implementation of the EDFs (7th to 9th) at 31 December 2007; the financial implementation forecasts for the current year (2008); the expenditure forecasts for 2009.

The Member States contribute funds directly to the European Investment Bank (EIB) for the instruments which it manages under the 9th and 10th EDFs (the Investment Facility and interest-rate subsidies). Contributions for other instruments, including contributions for the old instruments managed by the EIB (risk capital and interest-rate subsidies), go to the Commission.

The Commission and the EIB have updated their commitment and payment forecasts for 2008 and 2009 for each of the ACP countries and the Overseas Countries and Territories. The payment forecasts in particular have been compiled with great care with the aim of helping the Member States to assess as accurately as possible the amounts they need to earmark in their national budgets while ensuring that sufficient financial resources are available for the EDF to avoid liquidity problems. In accordance with Article 8 of the Financial Regulation applicable to the 9th EDF and Article 7 of the Internal Agreement on the 10th EDF3, these forecasts will be adjusted in the October 2008 Communication.

The document shows the general trend in commitments and payments, including projections for 2008 (Commission and EIB). It clearly shows the structural upward trend of payments since 2000 .

Implementation of the European Development Funds at 31 December 2007 : the document shows clearly that the Commission has achieved its goal of committing all funds available under the 9th EDF and sums transferred from previous EDFs. In line with the rules, several tens of millions of euro remain to be committed between 1 January 2008 and the entry into force of the 10th EDF.

Implementation of the EDFs in 2007 (commitments, payments and financial situation) : the document gives a breakdown of commitments and payments in 2007 by instrument and compares them with the 2006 figures. It also shows actual implementation in 2007 compared with the forecasts made in October 2007. The Commission was unable to make all the payments forecast owing to insufficient financial contributions by the Member States. However, at EUR 2 920 million payments were once again higher than ever before.

The Commission also presents the financial situation and the projections made in October 2007: for the Commission the cash balance available to the Commission at the end of 2007 was only EUR 57 million (excluding EUR 211 million in 2008 contributions paid in at the end of December 2007). This was the lowest ever cash balance. The EIB's cash balance was EUR 77 million, compared with a forecast of EUR 6 million.

Financial implementation forecasts for 2008 and 2009 : the new forecasts for 2008 put the Commission's needs at EUR 3 000 million and the EIB's at EUR 305 million. These figures are based on the assumption that the 10th EDF comes on stream in early summer 2008. The sums decided by the Council in December 2007 for 2008 are EUR 2 857 million for the Commission and EUR 343 million for the EIB.

Contributions for 2009 are forecast at EUR 3 100 million for the Commission and EUR 370 million for the EIB. It should be stressed that these figures are just a preliminary forecast and must be treated with caution. The Commission and the EIB will make more reliable forecasts after the summer (October 2008).

The Commission urges the Council to make available all the contributions necessary to guarantee proper implementation of the EDF in 2008 and 2009.

The Council unanimously established the draft budget for 2009 at 1st reading. The Council used the preliminary draft budget of the European Communities for 2009, submitted by the Commission, as the basis for establishing this draft budget. In keeping with the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and budgetary management (IIA), a conciliation meeting between the Council and a delegation from the European Parliament, with the participation of the Commission, was held on 17 July 2008, prior to the discussions in the Council.

As a result of the Council’s discussions, the draft budget of the other institutions (except the Commission) has been approved.

In establishing the draft budget for 2009, the Council followed a number of guidelines:

A. Generally: the Council:

§ did not to adopt the expenditure and posts relating to the implementation of the Lisbon Treaty;

§ carry out targeted reductions under specific budgetary headings for all the institutions, taking into account the budget outturn in 2007 and real needs;

§ increase the standard flat-rate abatement on salaries for most of the institutions, taking into account their current vacancy rate;

§ apply to some institutions an additional reduction of 1.3% on current expenditure requested for 2009, to take into account efficiency gains and the impact of interinstitutional cooperation;

§ accept all new posts requested in relation to the 2007 enlargement. In this context, the Council repeated that it is intending to monitor closely the ongoing recruitment process;

§ accept only some of the new posts requested by the institutions for new tasks, on the basis of duly justified needs;

§ accept conversions, transformations and upgradings.

When examining the administrative budgets, the Council also focused on administrative operating expenditure linked to operational programmes and on administrative expenditure by executive agencies. In this respect, it was decided to carry out targeted reductions, in particular on the basis of the 2007 budget outturn.

The Council also gave careful consideration to the question of assigned revenues. With a view to improving transparency and sound financial management in this area, it took due account of this factor, in particular by setting the Community contribution to the budgets of decentralised agencies.

This approach has resulted in a margin of EUR 224.13 million available under the ceiling of heading 5 of the Financial Framework (instead of 129.1million in the preliminary draft budget), which is deemed sufficient to satisfy the requirements of the IIA and in the interests of sound financial management.

B. Amounts allocated by the Council for each institution (except for the Commission):

§ European Parliament - Section I : under the "gentlemen's agreement", the Council included the European Parliament estimate in the draft general budget of the European Communities for the financial year 2009 without any changes (EUR 1 530 840 023); the estimate represents an increase of EUR 78 322 856 (+5.39%) over the 2008 budget.

§ Council - Section II : EUR 602 852 000, which represents an increase of EUR 8 136 732 (+1.37%) over the 2008 budget. The standard flat-rate abatement on salaries was fixed at 7% taking into account the current vacancy rate. Targeted reductions were retained by applying a specific decrease to appropriations related to the acquisition of equipment and software, outside assistance for the operation and development of computer systems, telecommunications, the purchase and replacement of technical equipment and installations, as well as information and public events. With regard to staff levels, the Council accepted the creation of 15 new posts for the new Irish language unit. It also approved the transformations for career development. The Council also accepted the appropriations requested to employ 20 new external contract staff.

§ Court of Justice - Section IV : EUR 312 784 433, which represents an increase of EUR 18 706 842 (+6.36%) over the 2009 budget. The standard flat-rate abatement on salaries was fixed at 4.5 % taking into account the current vacancy rate. Appropriations requested for external services in the linguistic field were decreased by 5%, given the under-utilisation in previous years. Targeted reductions were retained by applying a specific decrease to appropriations related to expenditure on information technology. With regard to staff levels, the Council accepted the creation of 39 new posts in connection with the introduction of the urgent preliminary ruling procedure: 10 posts for 9 months, 17 posts for 6 months and 12 posts for 3 months. It also approved the transformations for career development. The Council also accepted the upgrading of 1 post, the conversion of 9 posts and the elimination of another post. On the other hand, it rejected the request for 7 other non-enlargement posts, which the budgetary authority had already rejected in the 2008 budgetary procedure.

§ Court of Auditors - Section V : EUR 132 309 000, representing a decrease of EUR 460 183 (-0.35%) over the 2008 budget, which included a significant amount of extraordinary expenditure. The standard flat-rate abatement on salaries was fixed at 4.5% taking into account the current vacancy rate. Targeted reductions were retained by applying a specific decrease to appropriations relating to car park rentals, travel tickets, studies and other consultancy services in connection with the Court's administrative activities, archive services and the acquisition of archive resources on substitute media, and general publications. With regard to staff levels, the Council accepted the creation of 20 posts for auditors for 4 months (instead of 6 months). It also approved the transformations for career development. The Council also accepted the conversion of 2 temporary AD 14 posts into permanent posts. On the other hand, it rejected the request for a further 11 posts.

§ Economic and Social Committee - Section VI : EUR 118 443 957, which represents an increase of EUR 3 699 781 (+3.22%) over the 2008 budget. The standard flat-rate abatement on salaries was fixed at 5.5%, taking into account the recruitment difficulties encountered and the real cost of new staff. Targeted reductions were retained by applying a specific decrease to appropriations relating to interpreting services, as well as to appropriations intended for other staff and outside services which had been little used for the last two years. The amount of the increase requested by the institution for appropriations relating to members and delegates was reduced since travel expenses were judged to have been over-estimated. With regard to staff levels, the Council accepted the creation of 2 posts for 3 months (instead of 6 months). It also approved the transformations for career development. The Council also accepted the other changes (1 reclassification and 6 upgrades) to the establishment plan. On the other hand, it rejected the request for 4 additional non-enlargement posts.

§ Committee of the Regions - Section VII : EUR 75 771 721, which represents an increase of EUR 4 567 230 (+6.41 %) over the 2008 budget. The standard flat-rate abatement on salaries was fixed at 6 %, taking into account the current vacancy rate and the over-estimate of the number of missions. Targeted reductions were retained by not accepting the appropriations for interpreting services and for meetings and conferences requested in connection with the implementation of the Lisbon Treaty. The amount of the increase requested by the institution for appropriations relating to general publications and external studies was deemed to have been overestimated and was reduced accordingly. With regard to staff levels, the Council accepted the creation of 7 enlargement posts. It also approved the transformations for career development. The Council also accepted the conversion of a temporary post. It rejected the request for 23 additional non-enlargement posts in connection with the implementation of the Lisbon Treaty.

§ European Ombudsman – Section VIII : EUR 8 828 747, which represents an increase of EUR 322 977 (+3.80 %) over the 2008 budget. The requests for current expenditure and for extraordinary expenditure were accepted. With regard to staff levels, the Council accepted the creation of 1 post for 4 months (instead of the 12 months requested) and 2 temporary posts for 4 months (instead of 6 months). It also approved the transformations for career development as well as two upgrades. On the other hand, the Council rejected the request for a further 3 temporary posts.

§ European Data Protection Supervisor – Section IX : EUR 6 591 700, which represents an increase of EUR 1 283 947 (+24.19 %) over the 2008 budget. A targeted reduction was carried out in relation to building expenditure as a result of the Council approving appropriations for the rental of an additional half floor, rather than the three-quarters of a floor requested by the Supervisor. The other requests for current expenditure and extraordinary expenditure were accepted. With regard to staff levels, the Council approved the creation of 4 new posts for 6 months (instead of the 9 months requested). It also approved the transformations for career development but rejected the request for a new post.

The Council unanimously established the draft budget for 2009 at 1st reading. The Council used the preliminary draft budget of the European Communities for 2009, submitted by the Commission, as the basis for establishing this draft budget. In keeping with the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and budgetary management (IIA), a conciliation meeting between the Council and a delegation from the European Parliament, with the participation of the Commission, was held on 17 July 2008, prior to the discussions in the Council.

As a result of the Council’s discussions, the draft budget of the other institutions (except the Commission) has been approved.

In establishing the draft budget for 2009, the Council followed a number of guidelines:

A. Generally: the Council:

§ did not to adopt the expenditure and posts relating to the implementation of the Lisbon Treaty;

§ carry out targeted reductions under specific budgetary headings for all the institutions, taking into account the budget outturn in 2007 and real needs;

§ increase the standard flat-rate abatement on salaries for most of the institutions, taking into account their current vacancy rate;

§ apply to some institutions an additional reduction of 1.3% on current expenditure requested for 2009, to take into account efficiency gains and the impact of interinstitutional cooperation;

§ accept all new posts requested in relation to the 2007 enlargement. In this context, the Council repeated that it is intending to monitor closely the ongoing recruitment process;

§ accept only some of the new posts requested by the institutions for new tasks, on the basis of duly justified needs;

§ accept conversions, transformations and upgradings.

When examining the administrative budgets, the Council also focused on administrative operating expenditure linked to operational programmes and on administrative expenditure by executive agencies. In this respect, it was decided to carry out targeted reductions, in particular on the basis of the 2007 budget outturn.

The Council also gave careful consideration to the question of assigned revenues. With a view to improving transparency and sound financial management in this area, it took due account of this factor, in particular by setting the Community contribution to the budgets of decentralised agencies.

This approach has resulted in a margin of EUR 224.13 million available under the ceiling of heading 5 of the Financial Framework (instead of 129.1million in the preliminary draft budget), which is deemed sufficient to satisfy the requirements of the IIA and in the interests of sound financial management.

B. Amounts allocated by the Council for each institution (except for the Commission):

§ European Parliament - Section I : under the "gentlemen's agreement", the Council included the European Parliament estimate in the draft general budget of the European Communities for the financial year 2009 without any changes (EUR 1 530 840 023); the estimate represents an increase of EUR 78 322 856 (+5.39%) over the 2008 budget.

§ Council - Section II : EUR 602 852 000, which represents an increase of EUR 8 136 732 (+1.37%) over the 2008 budget. The standard flat-rate abatement on salaries was fixed at 7% taking into account the current vacancy rate. Targeted reductions were retained by applying a specific decrease to appropriations related to the acquisition of equipment and software, outside assistance for the operation and development of computer systems, telecommunications, the purchase and replacement of technical equipment and installations, as well as information and public events. With regard to staff levels, the Council accepted the creation of 15 new posts for the new Irish language unit. It also approved the transformations for career development. The Council also accepted the appropriations requested to employ 20 new external contract staff.

§ Court of Justice - Section IV : EUR 312 784 433, which represents an increase of EUR 18 706 842 (+6.36%) over the 2009 budget. The standard flat-rate abatement on salaries was fixed at 4.5 % taking into account the current vacancy rate. Appropriations requested for external services in the linguistic field were decreased by 5%, given the under-utilisation in previous years. Targeted reductions were retained by applying a specific decrease to appropriations related to expenditure on information technology. With regard to staff levels, the Council accepted the creation of 39 new posts in connection with the introduction of the urgent preliminary ruling procedure: 10 posts for 9 months, 17 posts for 6 months and 12 posts for 3 months. It also approved the transformations for career development. The Council also accepted the upgrading of 1 post, the conversion of 9 posts and the elimination of another post. On the other hand, it rejected the request for 7 other non-enlargement posts, which the budgetary authority had already rejected in the 2008 budgetary procedure.

§ Court of Auditors - Section V : EUR 132 309 000, representing a decrease of EUR 460 183 (-0.35%) over the 2008 budget, which included a significant amount of extraordinary expenditure. The standard flat-rate abatement on salaries was fixed at 4.5% taking into account the current vacancy rate. Targeted reductions were retained by applying a specific decrease to appropriations relating to car park rentals, travel tickets, studies and other consultancy services in connection with the Court's administrative activities, archive services and the acquisition of archive resources on substitute media, and general publications. With regard to staff levels, the Council accepted the creation of 20 posts for auditors for 4 months (instead of 6 months). It also approved the transformations for career development. The Council also accepted the conversion of 2 temporary AD 14 posts into permanent posts. On the other hand, it rejected the request for a further 11 posts.

§ Economic and Social Committee - Section VI : EUR 118 443 957, which represents an increase of EUR 3 699 781 (+3.22%) over the 2008 budget. The standard flat-rate abatement on salaries was fixed at 5.5%, taking into account the recruitment difficulties encountered and the real cost of new staff. Targeted reductions were retained by applying a specific decrease to appropriations relating to interpreting services, as well as to appropriations intended for other staff and outside services which had been little used for the last two years. The amount of the increase requested by the institution for appropriations relating to members and delegates was reduced since travel expenses were judged to have been over-estimated. With regard to staff levels, the Council accepted the creation of 2 posts for 3 months (instead of 6 months). It also approved the transformations for career development. The Council also accepted the other changes (1 reclassification and 6 upgrades) to the establishment plan. On the other hand, it rejected the request for 4 additional non-enlargement posts.

§ Committee of the Regions - Section VII : EUR 75 771 721, which represents an increase of EUR 4 567 230 (+6.41 %) over the 2008 budget. The standard flat-rate abatement on salaries was fixed at 6 %, taking into account the current vacancy rate and the over-estimate of the number of missions. Targeted reductions were retained by not accepting the appropriations for interpreting services and for meetings and conferences requested in connection with the implementation of the Lisbon Treaty. The amount of the increase requested by the institution for appropriations relating to general publications and external studies was deemed to have been overestimated and was reduced accordingly. With regard to staff levels, the Council accepted the creation of 7 enlargement posts. It also approved the transformations for career development. The Council also accepted the conversion of a temporary post. It rejected the request for 23 additional non-enlargement posts in connection with the implementation of the Lisbon Treaty.

§ European Ombudsman – Section VIII : EUR 8 828 747, which represents an increase of EUR 322 977 (+3.80 %) over the 2008 budget. The requests for current expenditure and for extraordinary expenditure were accepted. With regard to staff levels, the Council accepted the creation of 1 post for 4 months (instead of the 12 months requested) and 2 temporary posts for 4 months (instead of 6 months). It also approved the transformations for career development as well as two upgrades. On the other hand, the Council rejected the request for a further 3 temporary posts.

§ European Data Protection Supervisor – Section IX : EUR 6 591 700, which represents an increase of EUR 1 283 947 (+24.19 %) over the 2008 budget. A targeted reduction was carried out in relation to building expenditure as a result of the Council approving appropriations for the rental of an additional half floor, rather than the three-quarters of a floor requested by the Supervisor. The other requests for current expenditure and extraordinary expenditure were accepted. With regard to staff levels, the Council approved the creation of 4 new posts for 6 months (instead of the 9 months requested). It also approved the transformations for career development but rejected the request for a new post.

PURPOSE: to present the preliminary draft budget (PDB) 2009 for the other institutions.

CONTENT: the Commission has presented its 2009 preliminary draft budget which takes account of the forecasts of the other institutions of the European Union (except Section III: Commission).

The document includes the following budget provisions: EUR 3 561 million to cover the Commission’s administrative expenditure and EUR 2 803 million for the other institutions (an increase of 5% compared to 2008).

A margin of EUR 129.1 million is left in the Commission’s PDB.

The breakdown of Heading 5 of the PDB 2009 is as follows

§ Commission (excluding pensions): EUR 3 561 million (46.6%);

§ Other institutions: EUR 2 803 million including (36.7%):

- European Parliament: EUR 1 531 million;

- Council: EUR 612.82 million;

- Court of Justice: EUR 317.7 million;

- Court of Auditors: EUR 134.09 million;

- Economic and Social Committee: EUR 121.42 million;

- Committee of the Regions: EUR 77.74 million;

- European Ombudsman: EUR 9.01 million;

- European Data Supervisor: EUR 6.84 million.

§ Pensions (all institutions): EUR 1 135 million (14.8%)

§ European schools: EUR 148 million (1.9%)

Total: EUR 7 648 million for heading 5.

It should be noted that in 2009 the evolution of posts is still strongly influenced by the needs of enlargement.

PURPOSE: to present the preliminary draft budget (PDB) 2009 for the other institutions.

CONTENT: the Commission has presented its 2009 preliminary draft budget which takes account of the forecasts of the other institutions of the European Union (except Section III: Commission).

The document includes the following budget provisions: EUR 3 561 million to cover the Commission’s administrative expenditure and EUR 2 803 million for the other institutions (an increase of 5% compared to 2008).

A margin of EUR 129.1 million is left in the Commission’s PDB.

The breakdown of Heading 5 of the PDB 2009 is as follows

§ Commission (excluding pensions): EUR 3 561 million (46.6%);

§ Other institutions: EUR 2 803 million including (36.7%):

- European Parliament: EUR 1 531 million;

- Council: EUR 612.82 million;

- Court of Justice: EUR 317.7 million;

- Court of Auditors: EUR 134.09 million;

- Economic and Social Committee: EUR 121.42 million;

- Committee of the Regions: EUR 77.74 million;

- European Ombudsman: EUR 9.01 million;

- European Data Supervisor: EUR 6.84 million.

§ Pensions (all institutions): EUR 1 135 million (14.8%)

§ European schools: EUR 148 million (1.9%)

Total: EUR 7 648 million for heading 5.

It should be noted that in 2009 the evolution of posts is still strongly influenced by the needs of enlargement.

In a letter from the European Commission addressed to the Secretary-General of the European Parliament, it notes that, in accordance with Article 272(9) of the EC Treaty, the maximum rate of increase for “non-compulsory” expenditure is set at 5% for the 2009 budget with the current 27 Member States.