2004 enlargement: adjustment of financial perspective for 2004-2006

PURPOSE : to conclude an interinstitutional agreement adjusting the financial perspectives 2004-2006 for enlargement.

COMMUNITY MEASURE : Decision 2003/429/EC of the European Parliament and of the Council of 19 May 2003 on the adjustment of the financial perspective for enlargement.

CONTENT : this Decision aims to adjust the financial perspectives 2004-2006 in light of the enlargement of the European Union to 25 Member States as from 1 May 2004.

This adjustment is in accordance with the Parliament's opinion of 9 April 2003 (refer to the previous summary) and includes the following issues:

- adjustment of the annual ceilings for appropriations for commitments of headings 1 (Agriculture), 2 (Structural Actions), 3 (Internal policies) and 5 (Administrative expenditure) of the financial perspective contained in Annex I of the Interinstitutional Agreement of 6 May 1999 shall be raised by the corresponding expenditure requirements resulting from the accession of 10 new Member States;
- the adjustment of the ceiling of heading 7 shall include appropriations for pre-accession assistance concerning Turkey. The title of heading 7 is amended to read 'Pre-accession strategy'. A new heading 8 shall be created in order to enter budgetary compensations agreed upon at the Copenhagen European Council (December 2002).

The total appropriations for commitments for 2004 is EUR 102.985 billion against EUR 93.215 in 2003, to EUR 105.128 billion in 2005 and EUR 106.741 billion in 2006.

The total appropriations for payments for 2004 is EUR 100.8 billion against EUR 94.88 billion in 2003, EUR 101.6 billion in 2005 and EUR 103.84 billion in 2006.

It should also be noted that adjustments are also foreseen in the event of Cyprus reaching a political settlement.