Budgetary discipline: mobilisation of the flexibility instrument for Kosovo

The European Parliament adopted by 447 votes for, 42 against and 4 abstentions, the report by Mr Joan COLOM I NAVAL (PES, E), by which, in applying the provisions of the Interinstitutional Agreement of 6 May 1999 (IIA), the Parliament and the Council reached a common Agreement to mobilise the flexibility instrument (created on the instigation of the Parliament in December 1998) in order to ensure the financing of the reconstruction of Kosovo without proceeding with linear reductions of other external action lines as initially foreseen by the Council. This Agreement provides for recourse to the flexibility instrument for the amount of EUR 200 million. From this amount, EUR 180 million in commitment appropriations are destined to finance Kosovo (line B7-546). The European Parliament advocates with respect to the EUR 180 million, the designation of EUR 100 million in commitment appropriations. Thus, funding for Kosovo would be EUR 360 million for the year 2000 in commitment appropriations, divided up as follows : - EUR 60 million for the OBNOVA budget line already approved in first reading; - EUR 20 million for humanitarian aid already approved in first reading; - EUR 180 million via the flexibility instrument; - EUR 60 million appropriations from 1999 which will be carried over to the 2000 financial year; - EUR 40 million to be financed by the redeployment of appropriations in the course of the 2000 financial year. Also included in this Agreement are the following declarations: - a declaration from the Commission in which it confirms that it will propose before April 2000 an aid programme for the Western Balkans, including Kosovo, for the period 2000-2006 on the basis of a needs assessment. This implies a proposal for the revision of the financial perspectives accompanied by a programming of expenditures under heading 4 - external actions; - a declaration from the European Parliament and the Council in which they recognise the fact that if - to finance this aid - a significantly greater financial effort than that already programmed would have to be agreed, this would entail the raising of the current ceilings for heading 4 of the financial perspective - external actions; - a declaration from the European Parliament in which it undertakes to reduce the payment appropriations for the 2000 budget by 2 billion euros in comparison to its first reading.�