Reform of the budgetary procedure: possible options in view of the revision of the Treaties

The European parliament adopted a resolution drafted by Terry WYNN (PES, UK) on reform of the budgetary procedure. (Please refer to the document dated 18/02/03.) On the abolition of the distinction between compulsory and non-compulsory expenditure, Parliament recalled that the proportion of total outgoings accounted for by non-compulsory expenditure increased from 8% in the 1970s to 58% in 2008. It stressed that it could only agree to the abrogation of the traditional competencies conferred respectively on the Council in respect of compulsory expenditure and on Parliament in respect of non-compulsory expenditure if the codecision procedure is applied to the budgetary procedure. In accordance with the principle underlying budgetary codecision, the first reading by the Council of the preliminary draft budget drawn up by the Commission is superfluous and should therefore be discontinued. There should be a first reading by Parliament of the draft budget, followed by a single reading by the Council of the draft budget as amended by Parliament, followed by conciliation and a second reading by Parliament. An agreement should be reached - by conciliation - between the two arms of the budgetary authority on both revenue and expenditure, with that agreement being endorsed by Parliament in second reading. With regard to own resources, Parliament recognised the need to reform the current system but felt that this issue should form part of a more global reflection between the two arms of the budgetary authority on the various possible sources of finance for the EU budget. This should take place at the highest political levels, should not give rise to disparities in treatment between the Member States and should take into account national considerations and the different proposals made at Community level. The nature and maximum amount of resources levied should be determined by means of an institutional law. �