The annual budget of the European Untion ensures that the funding of the Community activities and operations is authorized and the resources are allocated according to current policies and priorities. In 1970, the Community budget amounted to 3.6 billion Euros and a large amount was mainly dedicated to the common agricultural policy. For the year 2001, the estimated budget for the EU activities was estimated to be 97 billion Euros, which aimed at improving sectors like agriculture, education and regional development of the member nations.
[...] (Commitments and payments must NOT be confused, Cf. Above). Heading 4 (external policies): Cf. Above. Commitments in food aid, co-operation with Asia, Latin countries, Mediterranean and Middle East countries are conversely reduced (except for the humanitarian aid). Heading 5 (administrative expenditure): transparent promotions policy and the changes implied must remain within reasonable limits, i.e in a view of a decreasing margin in this heading. Heading 6 (pre-accession aids): pre-accession instruments (i.e SAPARD, ISPA and PHARE programmes) face severe delays in implementation. [...]
[...] Conclusion: The EU budget underlines three key issues which should be addressed its present drawbacks. First of all, one can rightly question its size in the light of fiscal federalist principles and in the offing of next EU enlargement to the East. It can be asserted that the EU seemingly lack resources, should then the EU have additional own resources? Introducing greater budget equity between Member states is finally to be taken into account, as a Commission report pointed out in Financing the EU (1998) which explored options regarding the introduction of a new own resources and greater budget equity. [...]
[...] To remedy the only of the total budget spent on preparing Community policies, a seven-year framework has been adopted both by the European Parliament and the Council of the European Union in 2000, covering the period 2000-2006, and facilitating then the annual adoption of the budget. Furthermore, the multiannual ceilings imposed help controlling the development of EU spending. It must also be remembered that the budget is divided into 7 headings as shown below, also divided into increasing compulsory expenditure and steady non-compulsory expenditure (on which the Parliament has the final say) Financial framework 2000-2006 (million Euro) Between theory and practice: how is the annual budget drawing up? As established by the articles 268 to 280 of the Amsterdam Treaty . [...]
[...] Also the emphasis is put on creating a retirement scheme (about 600 officials). An Interinstitutional Recruitment Office is called for. This whole bunch of measures derived from a screening procedure undertaken to identify resources available, redeployment of staff with regard to core priorities, staff required. An overall strategy aiming at keeping commitments and payments in a balance and thus reducing the outstanding commitments (RAL) of recent years. A final agreement was reached to a increase in payment appropriations over the 2000 budget. [...]
[...] Heading 3 (internal policies) : on the one hand, the Growth and Employment initiative created in 1998 is going on, integrating initiatives executed by the European Investment Fund (i.e ETF start-up scheme and SME loan guarantee facility). On the other hand, an allocation for the Multiannual Programme for Enterprise and Entrepreneurship for 2001 to 2005 was agreed (EUR 100 million in commitment appropriations in 2001). These two measures are to be understood within the framework of developing Europe as knowledge based society with a special focus on small and medium enterprises and the promotion of technology. Cuts in commitments mainly deal with energy, environment, employment, measures to combat fraud, culture, information . [...]
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