2007 budget: section III, Commission

To recall, on 28 September 2006, the Commission forwarded to the Council Letter of Amendment No. 2 to the Preliminary Draft Budget for the financial year 2007 (refer to the summary dated 26/09/2006).

This Letter of Amendment concerns expenditure under Section III – Commission – of the Community budget and covers the following elements:

a) Changes with net financial effect:

§         creation of a new article 40 02 43 (Reserve for the European Globalisation Adjustment Fund) with EUR 500 million in commitment appropriations for the European Globalisation Adjustment Fund (EGF);

§         inclusion of EUR 15 million in commitment appropriations into the reserve for line 13 03 12 (Community contribution to the International Fund for Ireland) pending the adoption of the proposal for a new Council Regulation on Community financial contributions to the International Fund for Ireland (IFI);

§         increase of EUR 6 million in commitment appropriations and of EUR 4.4 million in payment appropriations in the reserve of line 24 02 01 (General measures to combat fraud (Hercule II)), following the proposal for a Decision amending and extending Decision No. 804/2004/EC on a Community action programme to promote activities in the field of the protection of the Community's financial interests (Hercule II);

§         changes reflecting the variation in the components of Heading 1b in the legal bases that have been adopted, relative to the respective envelopes that were known at the time of preparation of the PDB 2007. The net increase is EUR 8.4 million in payment appropriations.

b) Changes with no financial effect such as updating budgetary remarks and other technical adjustments.

On 17 October 2006, the Council established Letter of Amendment No. 2 to the 2007 Draft Budget as submitted by the Commission with the exclusion of:

§         EUR 500 million in commitment appropriations in the reserve for the European Globalisation Adjustment Fund (EGF);

§         EUR 6 million in commitment appropriations and of EUR 4.4 million in payment appropriations in the reserve for the Hercule II Programme.

Regarding the increase of EUR 15 million in commitment appropriations in the reserve proposed by the Commission for the International Fund for Ireland (IFI), the Council has already included them when establishing its 2007 Draft Budget, therefore the amount remains as adopted in the Draft Budget.

This Letter of Amendment No. 2 is forwarded to the European Parliament on the basis of the timetable discussed.