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

OBJECTIVE: presentation of a Commission working document proposing a new version of the interinstitutional agreement on budgetary discipline and improvement of the budgetary procedure in the light of the new Union financial perspectives (2000-2006) taking account of the various interinstitutional agreements concluded on budgetary matters since 1982. SUBSTANCE: In its communication the Commission sets out a new version of the interinstitutional agreement on budgetary discipline and improvement of the budgetary procedure. It is intended to serve as a working document during negotiations between the European Parliament, the Council and the Commission. As indicated in its report on the implementation of the interinstitutional agreement (COS0695) the text concerns not only the renewal of the interinstitutional agreement of 29 October 1993 in the light of experience acquired when it was launched but also consolidation of all the joint declarations and interinstitutional agreements on budgetary matters since 1982. The main amendments to the text may be summarized as follows: - adjustments to the management of the financial framework and the budgetary procedure as such, - more flexible procedure for transfer between internal and external expenditure headings (headings 3 and 4 of the budget) and for the carryover from one financial year to the next of unspent allocations to cover clearly identified requirements of major political significance (to a maximum of EUR 500 m) - ending current automatic carryover arrangements for unspent commitments under heading 2 (structural measures) except for the adjustment exercise in 2001 for which purpose a transfer could be authorized if excessive delays occurred in adoption of the new Structural Fund arrangement, - possible review of financial framework for enlargements if projected funding proves inadequate, Other more specific modifications concerning time limits for the utilization of the monetary reserve, the removal of provisions concerning monetary fluctuations within the EMS and conditions for using the emergency aid reserve. Concerning the consolidation of previous agreements on budgetary matters the proposed text takes account of subjects such as the classification of expenditure, compliance with statutory financial ceilings, the inclusion of financial provisions in legislative texts, the need to have a legal basis for budgetary headings and widening the budgetary conciliation procedure. Other factors taken into account in the new interinstitutional agreement concerns expenditure on fisheries agreement and the CFSP.�