SP(2005)4251/2

SP(2005)4139

PURPOSE: final adoption of the amending budget 3/2005

LEGISLATIVE ACT: 2005/699/EC, Euratom.

CONTENT : The European Parliament gave its definitive approval to amending budget 3/2005 of the European Union, in line with its resolution of 7 September 2005 (please refer to the summary of the resolution). This amending budget will make available EUR 15 million via the Flexibility Instrument for aid to countries that were victims of the tsunami.

Budget 2005/699
OJ L 270 14.10.2005, p. 0001-0016

The European Parliament adopted a report by Salvador GARRIGA POLLEDO (EPP-ED, ES) and approved Draft amending budget No 4/2005 unamended. Parliament agreed on a further mobilisation of the flexibility instrument for the year 2005 for an amount of EUR 15 million for the financing of the reconstruction and rehabilitation measures in the countries affected by the tsunami. Nevertheless, it criticised the Council's unwillingness to mobilise the flexibility instrument in the amount of EUR 98 million, as proposed by the Commission, which delayed adoption of the amending budget.

Parliament went on to recall that according to point 24 of the Interinstitutional Agreement the portion of the annual amount which is not used may be carried over up to the year n+2 and that if the instrument is mobilised, any carryovers will be drawn on in order of age. It took the view, therefore, that the mobilised amount of EUR 15 million comes from the amount carried over from the year 2004. It noted also that after this mobilisation the amount remaining available for 2005 under the flexibility instrument will be EUR 293 million.

Parliament recalled that the re-deployments agreed for 2005 must be re-programmed by means of an equivalent additional amount (that is, EUR 60 million) in the 2007 budget, so as to respect the commitment that resources released are additional to commitments already made.

T6-0326/2005
OJ C 193 17.08.2006, p. 0125-0194 E

Results of vote in Parliament

The European Parliament adopted a report by Salvador GARRIGA POLLEDO (EPP-ED, ES) and approved Draft amending budget No 4/2005 unamended. Parliament agreed on a further mobilisation of the flexibility instrument for the year 2005 for an amount of EUR 15 million for the financing of the reconstruction and rehabilitation measures in the countries affected by the tsunami. Nevertheless, it criticised the Council's unwillingness to mobilise the flexibility instrument in the amount of EUR 98 million, as proposed by the Commission, which delayed adoption of the amending budget.

Parliament went on to recall that according to point 24 of the Interinstitutional Agreement the portion of the annual amount which is not used may be carried over up to the year n+2 and that if the instrument is mobilised, any carryovers will be drawn on in order of age. It took the view, therefore, that the mobilised amount of EUR 15 million comes from the amount carried over from the year 2004. It noted also that after this mobilisation the amount remaining available for 2005 under the flexibility instrument will be EUR 293 million.

Parliament recalled that the re-deployments agreed for 2005 must be re-programmed by means of an equivalent additional amount (that is, EUR 60 million) in the 2007 budget, so as to respect the commitment that resources released are additional to commitments already made.

T6-0326/2005

Debate in Parliament

A6-0255/2005

A6-0255/2005

On 3 May 2005, the Commission transmitted to the Council its draft amending budget No. 3/2005 for the financial year 2005 covering rehabilitation and reconstruction measures for countries affected by the tsunami to be funded using resources from the flexibility instrument.

At the institutional budget trialogue on 11 July 2005, agreement was reached on the following points:

- acceptance of the modification of the budget concerning lines 19 10 04 and 05 08 03, as requested by the Commission in its draft amending budget;

- the mobilisation of EUR 15 million in favour of aid for rehabilitation and reconstruction of the countries affected by the tsunami via the flexibility instrument instead of EUR 98 million requested by the Commission.

At the end of the concertation procedure with the European Parliament’s delegation on 15 July 2005, and before the Council’s Budget session, the Council decided, in the framework of its agreement with the European Parliament and the Commission, which provides for the adoption of an amending budget in a single reading, to adopt the draft amending budget No. 4/2005 for the financial year 2005 as modified.

11220/2005

2673

The committee adopted the report by Salvador GARRIGA POLLEDO (EPP-ED, ES) approving Draft amending budget No. 4/ 2005 ( Tsunami) unamended.

On 3 May 2005, the Commission transmitted to the Council its draft amending budget No. 3/2005 for the financial year 2005 covering rehabilitation and reconstruction measures for countries affected by the tsunami to be funded using resources from the flexibility instrument.

At the institutional budget trialogue on 11 July 2005, agreement was reached on the following points:

- acceptance of the modification of the budget concerning lines 19 10 04 and 05 08 03, as requested by the Commission in its draft amending budget;

- the mobilisation of EUR 15 million in favour of aid for rehabilitation and reconstruction of the countries affected by the tsunami via the flexibility instrument instead of EUR 98 million requested by the Commission.

At the end of the concertation procedure with the European Parliament’s delegation on 15 July 2005, and before the Council’s Budget session, the Council decided, in the framework of its agreement with the European Parliament and the Commission, which provides for the adoption of an amending budget in a single reading, to adopt the draft amending budget No. 4/2005 for the financial year 2005 as modified.

11220/2005

PURPOSE : to present the preliminary draft amending budget 3/2005 aiming to finance the rehabilitation and reconstruction assistance to Tsunami affected countries in 2004.

CONTENT : t his Preliminary Draft Amending Budget contains the following 3 main elements:

- the mobilisation of new funds for an amount of EUR 98 million, in favour of the rehabilitation and reconstruction assistance to the earthquake/Tsunami affected countries (mainly Indonesia, Sri Lanka and the Maldives). These new funds will come from the mobilisation of the flexibility instrument;

- the modification of the remarks of budget line 19 10 04 - Rehabilitation and reconstruction operations in developing countries in Asia - by adding the ALA regulation as legal base to this budget line. This will allow the use of the most appropriate implementation modes for the Tsunami aid;

- the modification of the remarks of budget line 05 08 03 - Restructuring of systems for agricultural surveys - to take account of a special subsidy to be granted to the OECD and by adding to the existing legal basis a reference to the Commission institutional prerogatives.

As far as the financing of the post earthquake/Tsunami disaster actions is concerned, the Commission has foreseen two different phases:

1) an amount of EUR 123 million has already been made available as emergency aid on the 2005 budget, of which EUR 23 million under line 23 02 01 - Aid, including emergency food aid, to help the populations of the developing countries and other third countries hit by disasters or serious crises - and EUR 100 million through the mobilisation of the emergency aid reserve in agreement with the budgetary authority;

2) a total amount of EUR 350 million will be made available for reconstruction and rehabilitation over 2005 and 2006. This amount will be financed as follows:

- EUR 170 million in 2005, of which EUR 98 million of new funds through the mobilisation of the flexibility instrument as specified above. The remaining EUR 72 million will be financed by the Asia envelope for EUR 60 million and by the Rapid Reaction Mechanism for EUR 12 million,

- EUR 180 million are foreseen in the Preliminary Draft Budget for 2006, of which EUR 150 million of new funds to be financed through the mobilisation of the flexibility instrument and EUR 30 million by the Asia envelope.

In conclusion, s ince the ceiling for Heading 4: "External actions" in 2005 is already exceeded by EUR 100 million, the remaining part (EUR 98 million in favour of the rehabilitation and reconstruction assistance to the earthquake/Tsunami affected countries), can only be financed by an additional deployment of the flexibility instrument, in accordance with the provisions of the I.I.A. of 6 May 1999 (Please refer to procedure 2005/2083(ACI)).

EUR-Lex
SEC(2005)0548-

PURPOSE : to present the preliminary draft amending budget 3/2005 aiming to finance the rehabilitation and reconstruction assistance to Tsunami affected countries in 2004.

CONTENT : t his Preliminary Draft Amending Budget contains the following 3 main elements:

- the mobilisation of new funds for an amount of EUR 98 million, in favour of the rehabilitation and reconstruction assistance to the earthquake/Tsunami affected countries (mainly Indonesia, Sri Lanka and the Maldives). These new funds will come from the mobilisation of the flexibility instrument;

- the modification of the remarks of budget line 19 10 04 - Rehabilitation and reconstruction operations in developing countries in Asia - by adding the ALA regulation as legal base to this budget line. This will allow the use of the most appropriate implementation modes for the Tsunami aid;

- the modification of the remarks of budget line 05 08 03 - Restructuring of systems for agricultural surveys - to take account of a special subsidy to be granted to the OECD and by adding to the existing legal basis a reference to the Commission institutional prerogatives.

As far as the financing of the post earthquake/Tsunami disaster actions is concerned, the Commission has foreseen two different phases:

1) an amount of EUR 123 million has already been made available as emergency aid on the 2005 budget, of which EUR 23 million under line 23 02 01 - Aid, including emergency food aid, to help the populations of the developing countries and other third countries hit by disasters or serious crises - and EUR 100 million through the mobilisation of the emergency aid reserve in agreement with the budgetary authority;

2) a total amount of EUR 350 million will be made available for reconstruction and rehabilitation over 2005 and 2006. This amount will be financed as follows:

- EUR 170 million in 2005, of which EUR 98 million of new funds through the mobilisation of the flexibility instrument as specified above. The remaining EUR 72 million will be financed by the Asia envelope for EUR 60 million and by the Rapid Reaction Mechanism for EUR 12 million,

- EUR 180 million are foreseen in the Preliminary Draft Budget for 2006, of which EUR 150 million of new funds to be financed through the mobilisation of the flexibility instrument and EUR 30 million by the Asia envelope.

In conclusion, s ince the ceiling for Heading 4: "External actions" in 2005 is already exceeded by EUR 100 million, the remaining part (EUR 98 million in favour of the rehabilitation and reconstruction assistance to the earthquake/Tsunami affected countries), can only be financed by an additional deployment of the flexibility instrument, in accordance with the provisions of the I.I.A. of 6 May 1999 (Please refer to procedure 2005/2083(ACI)).

EUR-Lex
SEC(2005)0548-