2005 budget: others sections

The Council established the draft budget for the financial year 2005 by qualified majority. It used the preliminary draft budget of the European Communities for 2005, submitted by the Commission, as the basis for establishing the draft budget.

Under the draft budget established by the Council, commitment appropriations increase by 4.1% compared to the 2004 budget and payment appropriations by 5.4%.

The Council's scrutiny of the institutions' administrative expenditure was based on the following principles:

- setting an adequate margin within the ceiling under Heading 5 of the Financial Perspective in the interest of sound financial management;

- applying a reduction of 1.5% on current expenditure, taking into account the impact of development of information technologies and interinstitutional co-operation;

- fixing a minimum standard flat rate on salaries of 4%, taking into account the current vacancy rate;

- accepting new posts requested for enlargement and certain new tasks and applying a reduction of 5% on appropriations for these accepted posts, taking into account specific recruitment schedules;

- accepting conversions and upgradings, in particular related to career development under the new Staff Regulations.

A Council analysis of the administrative expenditure for each institution (except the Commission- refer to BUD/2004/2001) can be summarised as follows:

- European Parliament (Section I) : under the "gentlemen's agreement", the Council included the European Parliament estimate in the draft general budget of the European Communities for the financial year 2005 without any changes; the estimate represents an increase of 3.33%) over the 2004 budget.

- Council (Section II) : the Council allocated for its section of the budget, an overall amount of EUR 568 343 403, which represents an increase of 4.88%) over the 2004 budget. It includes an additional amount of EUR 9.8 million, which represents an increase of 1.8% over the 2004 budget, submitted during the proceedings after the tabling of the Council's explanatory memorandum and original draft estimates. The Council found it necessary to include this additional amount in order to carry out the latest decisions of the European Council concerning: the establishment of a civilian/military cell, a small EU cell at SHAPE and an operation centre, relating to the European Security and Defence Policy (EUR 8.1 million).

The integration in the Council Secretariat of an intelligence capacity on all aspects

of the terrorist threat, concerning the JHA area (EUR 1.7 million). As regards staffing, for its section of the budget, the Council agreed to the creation of the posts requested for enlargement and, given the expenditure laid down for the new tasks of the Secretariat, some other posts. It has agreed to create 119 new posts.

- Court of Justice (Section IV) : the Council allocated an overall amount of EUR 227 196 872, which represents a decrease of 3.34% over the 2004 budget. However, it represents an increase of 6.7% when taking into account the frontloading done in 2003 for the budget year 2004. As regards staffing, the Council accepted the creation of 10 new posts in the translation service. The Council approved also the 145 transformations for career development. All other requests were rejected.

- Court of Auditors (Section V) : the Council allocated an overall amount of EUR 106 740 579, which represents an increase of 10.13% over the 2004 budget. As regards staffing, the Council accepted the creation of 19 new posts requested by the Court of Auditors as reinforcement of its audit activity. The Council approved the 30 transformations for career development. The request for 23 other posts could not be accepted.

- Economic and Social Committee (Section VI) : the Council allocated an overall amount of EUR 103 430 125, which represents an increase of 0.70% over the 2004 budget. With regard to staff level, the Council endorsed the creation of 5 new posts, all language-related posts and it approved 78 transformations for career development. The Council rejected the request for the creation of 13 new posts.

- Committee of the Regions (Section VII) : the Council allocated an overall amount of EUR 59 875 396, which represents an increase of 0.78% over the 2004 budget. With regard to staff levels, the Council approved the creation of 3 new posts, all language-related posts and 17 transformations for career development. The Council rejected the request for the creation of 24 additional posts.

- European Ombudsman - (Section VIII a) : the Council allocated an overall amount of EUR 7 018 926, which represents an increase of 21.37%) over the 2004 budget.

On staffing, the Council accepted the creation of 4 new temporary posts, approved 7 transformations for career development and 3 conversions of permanent into temporary posts.

The Council rejected the request for the creation of 9 other new posts.

- European Data Protection Supervisor – (Section VIII b) : the Council allocated an overall amount of EUR 2 842 305, which represents an increase of 123.45%) over the 2004 budget that was established for only six months (Amending Budget No 2/2004). On staffing, the Council accepted the creation of the 4 new temporary posts requested and approved 6 transformations for career development.