Agenda 2000: financial perspectives 2000-2006, interinstitutional agreement on budgetary discipline

OBJECTIVE: the Commission's proposal for adjusting appropriations within the overall ceiling of the financial perspective for 1993-99 satisfies two requirements: - it respects orthodox and tight budget management, which are particularly important in the run-up to Economic and Monetary Union; - it is a response to the wishes expressed by the European Council, the Council and the European Parliament to attach particular importance to expenditure which stimulates growth, competitiveness and employment. SUBSTANCE: the object is to release the resources required to give a new impetus to the trans-European networks, research and SMEs by redeploying expenditure within headings and between headings. As regards transfers from one heading to another, the Commission is proposing that certain items of agricultural expenditure, currently included in headings 3 (internal policies) and 2 (Structural Funds) of the financial perspective, be reclassified in heading 1 (agricultural guideline). This transfer is made possible by the fact that agricultural expenditure will remain well below the guideline in the years ahead. The adjustment, which was already envisaged in the conclusions of the Edinburgh European Council, will not affect the financing of the CAP and will also be compatible with any pre-accession measures for the Central and Eastern European countries in the agricultural field. The transfer of some ECU 2 billion over three years will provide an equivalent margin in headings 2 and 2. Virtually all this amount (ECU 1.7 billion) will be for the trans-European networks, research and SMEs, which are regarded as priority areas for stimulating growth, competitiveness and employment. The Commission's proposal is thus a response to the wishes expressed by the European Council and avoids calling in any additional resources in excess of the financial framework set in 1992. �