The financial impact of the 2004 enlargement of the European Union

The European Parliament adopted an own-initiative resolution by Reimer BOGE (EPP-ED, Germany) on the financial impact of enlargement. (Please refer to the document dated 22/05/02.) Parliament insisted that the current Member States should not endanger the enlargement process by adhering to national positions but work together to find an agreement on the financial aspects of enlargement. On agriculture, the Commission is required, within the framework of the necessary reforms, to submit proposals to make direct income payments part of rural development policy after 2006. The phasing-in of structural operations is welcomed, but Parliament questioned the absorbtion capacity of the new Member States. On pre-accession instruments, it was pointed out that the take-up rate for SAPARD at the end of 2001 amounted to only 6.48%, leaving the total amount of unused appropriations as of 15 April 2002 at EUR 6.611 billion. The Commission needs to remedy this. Finally, Parliament pointed out that, amongst the general benefits associated with enlargement, there may be some undesirable effects in certain vulnerable regions or sectors and the EU or Member States may need to take special remedial action.�