Financial perspective: adjustment, adaptation

Together with the presentation of the annual technical adjustment, the Interinstitutional Agreement of 29 October 1993 provided for the possibility of adapting the financial perspective to the implementing conditions. This adaptation related to: - the transfer to subsequent years of appropriations not used during the previous year for the Structural Funds and the Cohesion Fund; - the total amount of payment appropriations, with a view to ensuring, if necessary, a methodical progression with regard to commitment appropriations. The consideration of the implementing conditions for the 1994 financial year carried out by the Commission, in light of these two aspects, led to the presentation of the following proposal to the two arms of the budgetary authority, which had to reach an agreement,: - The ceiling for the sub-heading "Structural Funds" (Commitment appropriations), which appeared under heading 2 of the financial perspective, was increased by ECU 1 300 million in 1996 and ECU 438 million in 1997 at current prices; - The total ceiling for payment appropriations included in the financial perspective was increased by ECU 1 300 million in 1996, ECU 610 million in 1997, ECU 390 million in 1998 and ECU 88 million in 1999, at current prices. In its communication on the "technical adjustment for 1996 of the financial perspective to the change in GNP and prices" (SEC(95)0275), the Commission based the macro-economic data and forecasts it used for this adjustment for the period 1994-1996 on the most recent budgets it had presented (November 1994). - With regard to heading 1 "Common agricultural policy": the level for the agricultural guideline for 1996 was calculated in accordance with the provisions of the Council decision concerning budgetary discipline (parameters used: Europe of 12 from 1988 to 1995 and Europe of 15 from 1995 to 1996); . the amounts under sugar and isoglucose levies, food aid refunds and the refunds on ACP sugar were based on the most recent estimates (the amounts to be included in the 1996 budget would not be determined until the end of April); - For headings 2 "Structural measures", 3 "Internal policy", 4 "External policy", 5 "Administrative expenditure", and 6 "Reserves", the ceilings for expenditure were adjusted by applying the variation in the GNP deflator from 1992 to 1996, except for sub-heading 2 "EEA financial mechanism", sub-heading 6 "Monetary reserve" and heading 7 "Compensation", which were fixed from the outset at current prices. With regard to sub-heading 2 "Structural Funds" and the amounts destined for the Member States, the adjustment was based on 1995 prices; - The results of these adjustments of the financial perspective for the years 1997-1999 were provided as a rough guide and at 1996 standard prices; - The ceiling for necessary payment appropriations for 1996 was set at ECU 81 267 million, which was ECU 2 259 less than the own resources ceiling on the basis of the current GNP forecast. �