Det Udenrigspolitiske Nævn 2005-06
Bilag 28
Offentligt
COUNCIL OFTHE EUROPEAN UNION
Brussels, 16 December 2005
PROVISIONAL VERSION
NOTEfrom :to :Subject :
PresidencyEuropean CouncilFinancial Perspective 2007-2013
Delegations will find attached a final comprehensive proposal from the Presidency on the FinancialPerspective 2007-2013.
This proposal is in three parts:
Part I: expenditure
Part II: revenue
Part III: review.
These three parts are complementary and inseparable. This means that the principle of nothing isagreed until everything is agreed continues to apply.
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PART I
EXPENDITURE
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THE NEW FINANCIAL PERSPECTIVE - GENERAL
1.
The new Financial Framework should provide the financial means necessary to addresseffectively and equitably future internal and external challenges, including those resultingfrom disparities in the levels of development in an enlarged Union. It should, in parallel,attest to determined efforts towards budgetary discipline in all policy areas within a generalcontext of budgetary consolidation in the Member States. Policies agreed in accordance withthe Treaty should be consistent with the principles of subsidiarity, proportionality andsolidarity. They should also provide added value.
2.
The new financial perspective should cover the seven years between 2007 and 2013 and bedrawn up for a European Union comprising 27 Member States on the working assumptionthat Bulgaria and Romania will join the Union in 2007. The amounts allocated to Romaniaand Bulgaria in their respective Accession Treaties will be respected.
2bis The European Council has treated the Financial Perspective 2007-2013 as an overallnegotiation package including expenditure, revenue and the review clause. The EuropeanCouncil shall ensure the global nature of this agreement.
3.
Expenditure under the new Financial Perspective should be grouped under 5 headingsdesigned to reflect the Union's political priorities and providing for the necessary flexibility inthe interest of efficient allocation of resources. Where a heading is divided into sub-headings,these will have the same status as separate headings.
4.
In the light of the above, the maximum total figure for expenditure for EU 27 for theperiod 2007-2013 is € 862,363 million in appropriations for commitments, representing1,045% of EU GNI. The breakdown of appropriations for commitments is as describedbelow. The same figures are also set out in the table contained in Annex I which also sets outthe schedule of appropriations for payments. All figures are expressed using constant2004 prices. There will be automatic annual technical adjustments for inflation.
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5.
The European Council takes note of the resolutions from the European Parliament on theFinancial Perspective which were adopted on 8 June and 1 December 2005.
Renewal of the Interinstitutional Agreement
6.
The current financial framework and Interinstitutional Agreement (IIA) have largelysucceeded in their objective of ensuring financial discipline, the orderly evolution ofexpenditure and smooth budgetary procedures. The new agreement to be established betweenthe European Parliament, Council and Commission will have to pursue the same objectivesand should allow for the degree of flexibility needed to strike a satisfactory balance betweenbudgetary discipline and efficient resources allocation. For the purposes of sound financialmanagement, the institutions will ensure as far as possible that, with the exception ofsub-heading 1b, sufficient margins are left available annually beneath the ceilings for thevarious headings and sub-headings. Moreover, this renewed agreement should also be used toupdate and simplify the various existing agreements and joint declarations concerningbudgetary matters.
7.
Building on the institutional dialogue to date, the European Council calls on the Council, onthe basis of a common position and subject to acceptable terms being attainable, to reachagreement with the European Parliament and Commission on a new IIA reflecting theoutcome of these conclusions. In this context, the European Council takes note that theCommission will make concrete proposals in order to increase the flexibility of the financialframework.
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HEADING 1A) – COMPETITIVENESS FOR GROWTH AND EMPLOYMENT
8.
The level for sub-Heading 1a) should provide adequate financing for initiatives taken at theEuropean level in support of and in synergy with action by the Member States to contribute tothe goals of the Lisbon Strategy. These are grouped under the following five broadobjectives: research and technological development, connecting Europe through EU networks,education and training, promoting competitiveness in a fully-integrated single market, and thesocial policy agenda. Nuclear de-commissioning will also be financed under thissub-Heading, and the financial consequences of this commitment shall be drawn in line withthe Treaties of Accession. The level of commitments, which represents 7,5% annual realgrowth compared to 2006, should not exceed:
SUB-HEADING 1a)200782302008884020099490201010180
(Million euros, 2004 prices)201110930201211740201312600
9.
On the basis of these levels of commitments, the European Council invites the Council,together with the European Parliament as appropriate, to come to a timely agreement throughthe legislative procedure on the content and appropriate funding of the instruments pertainingto this sub-Heading in the light of the various priorities expressed by the Member States.
10.
In allocating funding within this heading particular priority should be given to delivering asubstantial and progressive enhancement of the EU's research effort, which is generallyrecognised to be one of the most promising and effective drivers of innovation and growth.The European Council believes that EU funding for research should therefore be increasedsuch that by 2013 the resources available are around 75% higher in real terms than in 2006.This research effort, as reflected principally through the 7thFramework Programme, has to bebased on excellence while ensuring balanced access for all Member States. Due account willalso be taken of some priority projects within the Trans-European Networks.
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11.
The European Council invites the Commission in cooperation with the European InvestmentBank to examine the possibility of strengthening their support for Research and Developmentby up to a maximum of € 10 billion through a financing facility with risk-sharing componentsto foster additional investment in European research and development, particularly by theprivate sector.
11bis In order further to promote nuclear safety in the Union, the European Council calls on theBudgetary Authority to ensure that the following amounts are allocated for nuclear powerplant decommissioning during the next Financial Perspective:−−−12.€ 375 million for V-1 Jaslovske Bohunice in Slovakia€ 865 million for Ignalina in Lithuania€210 million for Kozloduy in Bulgaria from 2007 to 2009
The European Council agrees that a Globalisation Adjustment Fund will be established,designed to provide additional support for workers made redundant as a result of majorstructural changes in world trade patterns, to assist them with their re-training and job searchefforts. Activation of the Fund will be subject to strict criteria relating to the scale ofeconomic dislocation and its impact on local, regional or national economies, which theEuropean Council invites the Council to establish on the basis of a proposal from theCommission. The maximum amount of expenditure from the Fund shall be up to € 500million per year. No specific financial provision for the Fund will be made in the FinancialPerspectives. Instead it should be financed through underspends against the budget ceilingsestablished in these conclusions (defined in commitments terms) and/or from funds which arede-committed.
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HEADING 1B) – COHESION FOR GROWTH AND EMPLOYMENT
13.
The operation of cohesion policy will have contributed significantly over the current financialperspective period to fulfilling the Treaty aim of reducing disparities between the levels ofdevelopment of the various Member States and regions. The recent enlargement, and the oneto come, have considerably increased the economic and social disparities at both regional andnational level, thus underscoring the need to maintain the goal of achieving economic andsocial cohesion firmly at the centre of the Union's policy objectives over the next financialperspective period.
14.
Accordingly, there should be an appropriate concentration of structural and cohesion fundassistance on the least developed regions and Member States while providing for satisfactorytransitional arrangements in particular for those contributing most to such a concentration.Actions supported by cohesion policy should be focused on investment in a limited number ofpriorities organised around three Objectives: Convergence; Regional competitiveness andemployment; Territorial cooperation.
Supporting growth and employment
15.
As part of the Union's overall objective of promoting competitiveness and creating jobs, andof working towards meeting the objectives of the Lisbon agenda, the European Council agreesthat targets will be set for expenditure under both the convergence and regionalcompetitiveness and employment objectives for policies which contribute directly to this end.These targets will be 60% for the convergence objective and 75% for the regionalcompetitiveness and employment objective, applied as an average over the entire period.These provisions shall not apply to Member States that acceded to the Union in or after 2004,reflecting their specific development needs.
16.
The European Council invites the Commission to present proposals establishing a list of thosecategories of expenditure considered as contributing towards these targets, as well asarrangements providing for the full involvement of Member States with a view to ensuringthat specific national circumstances will be taken into account.
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Improving delivery
17.
A number of reforms will improve the delivery of structural funds, by encouraging a morestrategic approach to programming, bringing about greater decentralisation of responsibilitiesand enhancing management and control systems. In this connection, the work of theCohesion Fund will be integrated into the programming of structural assistance to ensuregreater coherence among the various Funds.
OVERALL LEVEL OF ALLOCATIONS
18.
The appropriate level of commitment appropriations to be entered in the financial perspectivefor the structural funds and the Cohesion Fund shall be:
SUB-HEADING 1b)200742911200843360200943892201043872
(Million euros, 2004 prices)201144067201244705201345312
Pursuing the goal of achieving economic and social cohesion in the enlarged Union willrequire a level of financial commitment for 2007-2013 of 0.37% of EU-27 GNI.
19.
81.9% of these funds (252,234 million euros) will be allocated to the Convergence objective,of which 24.4% (61,518 million euros) for the Cohesion Fund and 4.9 %(12,487 million euros) for the "phasing out" regions and Member States.
15.7% (48,386 million euros) of these funds will be allocated to the Regional competitivenessand employment objective, of which 21.4% (10,368 million euros) to the "phasing in"regions.
The Territorial co-operation objective will be allocated 2.4% (7,500 million euros) of thesefunds.
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20.
Total transfers from funds supporting cohesion to any Member State, including those fundstransferred to the new Rural development and Fisheries instruments, should not exceed thepercentages of Member States’ GDP set out in paragraph 40 below, in order to pay regard tothe finite capacity of Member States to utilise effectively the resources available.
DEFINITION OF THE DIFFERENT OBJECTIVES AND ELIGIBILITY
Definition of the Convergence Objective
21.
The Convergence Objective shall be aimed at speeding up the convergence of theleast-developed regions and Member States.
22.
The regions eligible for funding from the structural funds under this Objective are the currentNUTS1level II regions whose per capita GDP, measured in purchasing power parities andcalculated on the basis of Community figures for the period 2000-2002, is less than 75% ofthe EU 25 average.
23.
The Member States eligible for funding from the Cohesion Fund shall be those whose percapita GNI, measured in purchasing power parities and calculated on the basis of Communityfigures for the period 2001-2003, is less than 90% of the EU 25 average and which have aprogramme for meeting the economic convergence conditions referred to in Article 104 of theTreaty.
Definition of the Regional Competitiveness and Employment Objective
24.
This Objective shall be aimed at strengthening regions' competitiveness and attractiveness aswell as employment. The respective contributions of the European Regional DevelopmentFund (ERDF) and European Social Fund (ESF) shall be fixed by the Member States inconsultation with the Commission.
1
Nomenclature of Territorial Units for Statistics
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25.
The entire territory of the Community shall be eligible, with the exception of the regionseligible for funding from the structural funds under the Convergence Objective and theregions covered by transitional arrangements, subject to the limits set out in paragraph 40.
Definition of the European Territorial Cooperation Objective
26.
This Objective aims at strengthening territorial cooperation at the cross-border, trans-nationaland inter-regional levels and at establishing cooperation networks and furthering the exchangeof experience at the appropriate territorial level.
27.
The regions eligible for cross-border cooperation financing shall be all NUTS level III regionsalong the internal land borders, certain NUTS level III regions along the external land bordersand all NUTS level III regions along the maritime borders separated, as a general rule, by amaximum of 150 kms, taking into account potential adjustments needed to ensure thecoherence and continuity of the cooperation action.
28.
The list of eligible trans-national regions will be drawn up by the Commission following closeconsultations with Member States.
29.
The entire territory of the Community shall be eligible for the financing of inter-regionalcooperation and cooperation networks and exchange of experience.
ALLOCATION METHOD
Allocation method for convergence regions
30.
The specific level of allocations to each Member State should be based on an objectivemethod and calculated as follows:
Each Member State's allocation is the sum of the allocations for its individual eligible regions,the latter calculated on the basis of relative regional and national prosperity and theunemployment rate according to the following steps:
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(i)
determination of an absolute amount (in euros) obtained by multiplying the populationof the region concerned by the difference between that region's GDP per capita (PPS1)and EU 25 average GDP per capita (PPS);
(ii)
application of a percentage to the above absolute amount in order to determine thatregion's financial envelope; this percentage is graduated to reflect the relativeprosperity, as compared to the EU 25 average, of the Member State in which the eligibleregion is situated, i.e.:
•
4,25%
for regions in Member States whose level of GNI per capita isbelow 82% of the Community average
•
3,36%
for regions in Member States whose level of GNI per capita isbetween 82% and 99% of the Community average
•
2,67%
for regions in Member States whose level of GNI per capita is over99% of the Community average
(iii) to the amount obtained under step (ii) is added, if applicable, an amount resulting fromthe allocation of a premium of € 700 per unemployed person, applied to the number ofpersons unemployed in that region exceeding the number that would be unemployed ifthe average unemployment rate of all the EU convergence regions applied.
31.
The level of funds determined by the application of these parameters will include that part tobe transferred to Heading 2 (cf. paragraph 63).
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Purchasing Parity Standard
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Allocation method for the Cohesion Fund
32.
The total theoretical financial envelope is obtained by multiplying average per capita aidintensity of € 44,7 by the eligible population. Each eligible Member State'sa prioriallocationof this theoretical financial envelope corresponds to a percentage based on its population,surface area and national prosperity, and obtained by applying the following steps:
1)
calculation of the arithmetical average of that Member State's population and surfacearea shares of the total population and surface area of all the eligible Member States; if,however, a Member State's share of total population exceeds its share of total surfacearea by a factor of 5 or more, reflecting an extremely high population density, only theshare of total population shall be used for this step;
2)
adjustment of the percentage figures so obtained by a coefficient representing one thirdof the percentage by which that Member State's GNI per capita (PPS) exceeds or fallsbelow the average GNI per capita of all the eligible Member States (average expressedas 100%).
33.
In order to reflect the significant needs of new Member States in terms of transport andenvironment infrastructure, the share of the Cohesion Fund will be set at one third of the totalfinancial allocation (structural funds plus Cohesion Fund) for the new Member States onaverage over the period. For the other Member States, their financial envelope results directlyfrom the allocation method described in paragraph 32.
34.
Member States' eligibility for the Cohesion Fund will be reviewed in 2010 on the basis of datarelating to the EU-25.
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Allocation method for the Regional Competitiveness and Employment Objective
35.
The share of each Member State concerned is the sum of the shares of its eligible regions,with the latter determined according to the following criteria, weighted as indicated: totalpopulation (weighting 0,5), number of unemployed people in NUTS Level III regions with anunemployment rate above the group average (weighting 0,2), number of jobs needed to reachan employment rate of 70% (weighting 0,15), and number of employed people with a loweducational level (weighting 0,10), low population density (weighting 0,05). The shares arethen adjusted according to relative regional prosperity (for each region, increase or decreaseof its total share by +5%/-5% according to whether its GDP per capita is below or above theaverage GDP per capita for the group). The share of each Member State shall not however beless than three-quarters of its share in 2006 of combined funding under Objectives 2 and 3.
Allocation method for the Territorial Cooperation Objective
36.
The allocation of resources between the beneficiary Member States (including thecontribution of the ERDF to the cross-border strand of the European Neighbourhood andPartnership Instrument and the Instrument for Pre-accession) is determined as follows:
•
for the cross-border component, on the basis of the population of the NUTS level IIIregions in terrestrial and maritime border areas, as a share of the total population of allthe eligible regions. Contributions provided from Heading 4 should be allocatedsimultaneously;
•
for the transnational component, on the basis of the total population of the MemberState, as a share of the total population of all the Member States concerned.
The shares of the cross-border, transnational and inter-regional cooperation components are77%, 19% and 4% respectively.
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TRANSITIONAL ARRANGEMENTS
37.
In the interest of equity and to allow the process of convergence to be completed, transitionalarrangements will be put in place.
38.
The following categories of region and Member State are concerned:
(a)
the regions which would have been eligible for Convergence objective status had theeligibility threshold remained at 75% of average EU-15 GDP, but which lose eligibilitybecause their nominal per capita GDP level will now exceed 75% of the new (lower)EU-25 average (the so-called "statistical" effect). These regions will be "phased out" ofthe Convergence objective;
(b)
the regions currently eligible for full Objective 1 region status which cease to be eligiblein the next financial perspective period because natural growth has brought their percapita GDP level to over 75% of the EU-15 average, corresponding to over 82,19% ofthe new EU-25 average ("growth" effect). These regions will be "phased into" theRegional competitiveness and employment objective;
(c)
the Member States currently eligible for funding from the Cohesion Fund and whichwould have continued to be so had the eligibility threshold remained at 90% of averageEU-15 GNI, but which lose eligibility because their nominal per capita GNI will nowexceed 90% of the new (lower) EU-25 average. These Member States will be "phasedout" of the Cohesion Fund element of the Convergence objective.
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39.
The allocations under these phasing out/in arrangements will result from the application of thefollowing parameters:
(a)
for the regions defined in paragraph 38 (a), 80% of their individual 2006 per capita aidintensity level in 2007 and a linear reduction thereafter to reach the national average percapita aid intensity level for the regional competitiveness and employment objective in2013. To the allocation thus obtained is added, if applicable, an amount resulting fromthe allocation of a premium of € 600 per unemployed person, applied to the number ofpersons unemployed in that region exceeding the number that would be unemployed ifthe average unemployment rate of all the EU convergence regions applied.
The level of funds determined by the application of these parameters will include thatpart to be transferred to Heading 2 (cf. paragraph 63);
(b)
for the regions defined in paragraph 38 (b), 75% of their individual 2006 per capita aidintensity level in 2007 and a linear reduction thereafter to reach the national average percapita aid intensity level for the regional competitiveness and employment objective by2011. To the allocation thus obtained is added, if applicable, an amount resulting fromthe allocation of a premium of € 600 per unemployed person, applied to the number ofpersons unemployed in that region exceeding the number that would be unemployed ifthe average unemployment rate of all the EU convergence regions applied;
(c)
for the Member States defined in paragraph 38 (c) the allocation shall be degressiveover 7 years, with the amount in 2007 being € 1,2 billion, in 2008 € 850 million, in2009 € 500 million, in 2010 € 250 million, in 2011 € 200 million, in 2012 € 150 millionand in 2013 € 100 million.
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MAXIMUM LEVEL OF TRANSFERS FROM FUNDS SUPPORTING COHESION
40.
In order to contribute to the objectives of adequately concentrating cohesion funding on theleast developed regions and Member States and reducing disparities in average per capita aidintensities resulting from capping, the maximum level of transfer to each individual MemberState shall be as follows:
•
for Member States whose average 2001-2003 per capita GNI (PPS) is under 40% of theEU-25 average: 3.7893% of their GDP
•
for Member States whose average 2001-2003 per capita GNI (PPS) is equal to or above40% and below 50% of the EU-25 average: 3.7135% of their GDP
•
for Member States whose average 2001-2003 per capita GNI (PPS) is equal to or above50% and below 55% of the EU-25 average: 3.6188% of their GDP
•
for Member States whose average 2001-2003 per capita GNI (PPS) is equal to or above55% and below 60% of the EU-25 average: 3.5240% of their GDP
•
for Member States whose average 2001-2003 per capita GNI (PPS) is equal to or above60% and below 65% of the EU-25 average: 3.4293% of their GDP
•
for Member States whose average 2001-2003 per capita GNI (PPS) is equal to or above65% and below 70% of the EU-25 average: 3.3346% of their GDP
•
for Member States whose average 2001-2003 per capita GNI (PPS) is equal to or above70% and below 75% of the EU-25 average: 3.2398% of their GDP
•
thereafter, the maximum level of transfer is reduced by 0.09 percentage point of GDPfor each increment of 5 percentage points of average 2001-2003 per capita GNI (PPS)as compared to the EU-25 average.
In the case of Romania and Bulgaria this shall be without prejudice to paragraph 2 above.
In order to reflect the value of the Polish zloty in the reference period, the result of theapplication of the cap above for Poland will be multiplied by a coefficient 1.04 for the periodup to the review referred to in paragraph 42 (2007-2009).
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41.
Calculations of GDP by the Commission will be based on the statistics published inApril 2005. Individual national growth rates of GDP for 2007-2013, as projected by theCommission in April 2005, will be applied for each Member State separately.
42.
If it is established in 2010 that any Member State's cumulated GDP for the years 2007-2009has diverged by more than �5% from the cumulated GDP estimated according toparagraph 41, including as a consequence of exchange rate changes, the amounts allocated forthat period to that Member State pursuant to paragraph 40 will be adjusted accordingly. Thetotal net effect, whether positive or negative, of these adjustments may not exceed € 3 billion.In any event, if the net effect is positive, total additional resources shall be limited to the levelof under-spending against the ceilings for category 1B set out in paragraph 18 for the years2007-10. Final adjustments will be spread in equal proportions over the years 2011-2013.
ADDITIONAL PROVISIONS
43.
The methods, definitions and arrangements set out above form the common bedrock forallocating cohesion funds to the Member States. However, their necessarily general natureand the impossibility in practice of building in all relevant factors do not allow an adequateresponse to a number of objective situations, which accordingly calls for special treatment fora variety of reasons: the need to take into account revisions of the most recent statistical data,the disproportionate impact on certain regions and countries of mechanically applying certaincriteria; and exceptional geographic and demographic circumstances. In order to pay fullregard to these different elements in the interests of fairness and balance, the followingadditional provisions will be applied when implementing the allocation of cohesionexpenditure.
44.
When in a given Member State the "phasing-out" regions defined in paragraph 38 (a)represent at least one third of the total population of the regions fully eligible for Objective 1assistance in 2006, the rates of assistance shall be 80% of their individual 2006 per capita aidintensity level in 2007, 75% in 2008, 70% in 2009, 65% in 2010, 60% in 2011, 55% in 2012and 50% in 2013.
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45.
As far as the transitional arrangements under paragraphs 37-39 are concerned, the startingpoint in 2007 for those regions which were not eligible for Objective 1 status in the2000-2006 period, or whose eligibility started in 2004, will be 90% of their theoretical 2006per capita aid intensity level calculated on the basis of the 1999 Berlin allocation method withtheir regional per capita GDP level being assimilated to 75% of the EU 15 average.
46.
Notwithstanding paragraph 40, the Polish NUTS level II regions of Lubelskie, Podkarpackie,Warmínsko-Mazurskie, Podlaskie and Świętokrzyskie, whose per capita GDP levels (PPS)are the five lowest in the EU-25, shall benefit from funding from the ERDF over and abovethe funding to which they are otherwise eligible. This additional funding will amount to€ 95 per inhabitant over the period 2007-2013. Any upward adjustment of the amountsallocated to Poland pursuant to paragraph 42 shall be net of this additional funding.
46bis Notwithstanding paragraph 40, the NUTS level II region of Közép-Magyarország shall beallocated an additional envelope of €140 million over the period 2007-2013. For this regionthe same regulatory provisions would apply as for the region in paragraph 38(a).
46ter Notwithstanding paragraph 40, the NUTS level II region of Prague shall be allocated anadditional envelope of € 200 million over the period 2007-2013.
47.
Recognising that on the basis of revised figures for the period 1997-1999 Cyprus should havebeen eligible for Objective 1 in 2004-2006, Cyprus will benefit in 2007–2013 from thetransitional arrangements applicable to the regions defined in paragraph 38 (b), its startingpoint in 2007 being established in accordance with paragraph 45.
48.
The NUTS level II regions of Itä-Suomi and Madeira, while keeping the status of phasing-inregions, will benefit from the financial transitional arrangements laid down inparagraph 39 (a).
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49.
The NUTS level II region of the Canaries will benefit from an additional envelope of€ 100 million over the period 2007-2013.
50.
The outermost regions identified in Article 299 of the Treaty and the NUTS level II regionsfulfilling the criteria laid down in Article 2 of Protocol No 6 to the Treaty of Accession ofAustria, Finland and Sweden shall, in view of their specific constraints, benefit fromadditional funding from the ERDF. This funding will amount to € 35 per inhabitant per yearand will be in addition to any funding to which these regions are otherwise eligible.
51.
As far as allocations under the Territorial Cooperation Objective are concerned, aid intensityfor regions along the former external terrestrial borders between the EU-15 and the EU-12and between the EU-25 and the EU-2 will be 50% higher than for the other regionsconcerned.
52.
In recognition of the special effort for the peace process in Northern Ireland, a total of€ 200 million will be allocated for the PEACE Programme for the period 2007-2013. Thisprogramme will be implemented in full respect of additionality of structural fundinterventions.
53.
The Swedish regions falling under the Regional Competitiveness and Employment Objectiveshall be allocated an additional ERDF envelope of € 150 million.
53bis Notwithstanding paragraph 40, Estonia and Latvia, which represent single NUTS II regions,shall be allocated additional funding of € 35 per capita over the period 2007-2013.
54.
The Austrian regions falling under the Regional Competitiveness and Employment Objectivesituated on the former external borders of the EU shall be allocated an additional ERDFenvelope of € 150 million. Bavaria shall be allocated a similar additional envelope of €100million.
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54bis Spain shall benefit from an additional allocation of € 2.0 billion under the European RegionalDevelopment Fund, to enhance research and development by and for the benefit of enterprisesas set out in articles 4.1 and 5.1 of the ERDF regulation. The indicative split shall be 75% forconvergence objective regions (of which 5% for phasing-out regions) and 25% forcompetitiveness objective regions (of which 15% for phasing-in regions). These percentagesmay subsequently be amended at the initiative of Spain at any point before the adoption of theStructural Funds General Regulation.
54ter Ceuta and Melilla shall be allocated an additional ERDF envelope of € 50m over the period2007-2013.
54quater Italy will be allocated an additional envelope of EUR 1.9 bn under the Structural Fundsas follows: EUR 1.71 bn for the regions eligible under paragraph 22, EUR 57 m for theregion eligible under paragraph 38(a), and EUR 133 m for the regional eligible underparagraph 38(b).
54quinto In recognition of the particular circumstances of Corsica (30) and Hainaut fran§ais (70),France shall receive an additional allocation of €100m over the period 2007-13 under theregional competitiveness and employment objective.
54sexto An additional allocation of EUR 300m shall be allocated to the Eastern Länder of Germanywhich are eligible for support under the Convergence objective, of which EUR 78m shallbe allocated to regions eligible for support under paragraph 38(a).
CO-FINANCING RATES
55.
The ceilings for the contributions from the Structural and Cohesion Funds shall be those laiddown in Articles 51 and 52 of the Commission's proposal of 16 July 2004 for a CouncilRegulation laying down general provisions on the ERDF, ESF and Cohesion Fund, exceptthat:
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−
for Member States whose average per capita GDP from 2001 to 2003 was below 85% ofthe EU25 average, the ceiling for the rate of contribution by the ERDF or ESF for alloperational programmes shall be 85%;
−
in the other Member States eligible for the Cohesion Fund on 1 January 2007, the ceilingfor the standard rate of contribution by the ERDF or ESF under operational programmesin regions eligible under the Convergence objective, and in regions eligible for fundingunder the phasing-in according to paragraph 38 (b), shall be 80%.
The contribution from the Funds for all operational programmes for Member States whoseaverage per capita GDP from 2001 to 2003 was below 85% of the EU 25 average, togetherwith operational programmes in the Eastern Länder of Germany eligible for support under theConvergence objective, shall be calculated in reference to the total eligible cost (public andprivate).
ADVANCE PAYMENTS
56.
Advance payments for each Member State shall not exceed the following percentages of itsoverall cohesion envelope for the 2007-2013 period:
2007•For the structural funds– EU 15 Member States– EU 10 Member States, Bulgaria and Romania2%2%
20083%3%
2009
2%
•
For the Cohesion Fund– EU 15 Member States– EU 10 Member States, Bulgaria and Romania
2%2,5%
3%4%
2,5%4%
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OTHER REGULATORY PROVISIONS
57.
For Member States whose average per capita GDP between 2001 and 2003 was below 85% ofthe EU25 average, non-reimbursable VAT shall count as eligible expenditure for the purposeof calculating the contribution from the Funds. For all other Member States, the provisionsgoverning the eligibility of non-reimbursable VAT shall be as follows: VAT shall not, ingeneral, be eligible for co-financing. However, an exception shall be made for non-recoverable VAT when it is genuinely and definitively borne by beneficiaries other than nontaxable persons foreseen at Article 4(5), 1stsubparagraph of the 6thCouncil VAT Directive(States, regional and local government authorities and other bodies governed by public law).
58.
The automatic decommitment rule ("n+2") shall apply as set out in Article 92 of theCommission's proposal of 16 July 2004, for a Council Regulation laying down generalprovisions on the ERDF, ESF, and Cohesion Fund, except that for Member States whoseaverage per capita GDP from 2001 to 2003 was below 85% of the EU25 average the "n+2"rule shall be replaced with an "n+3" automatic de-commitment rule for the period 2007 to2010 only.
59.
The ERDF may also contribute to the financing of housing projects in the EU10, Romaniaand Bulgaria. The modalities for such support shall be laid down in a Regulation of theCouncil and the European Parliament on the basis of a proposal from the Commission.
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HEADING 2 – PRESERVATION AND MANAGEMENT OF NATURAL RESOURCES
60.
Commitment appropriations for this Heading, which is intended to cover agriculture, ruraldevelopment, fisheries and a new financial instrument for the environment, and which includethose funds transferred from sub-Heading 1b), should not exceed the following level:
HEADING 22007xxof whichAgriculture -Market-relatedexpenditure anddirect payments61.2008xx2009xx
(Million euros, 2004 prices)2010xx2011xx2012xx2013xx
43,120
42,697
42,279
41,864
41,453
41,047
40,645
The amounts for market-related expenditure and direct payments correspond to those agreedat the October 2002 European Council, expressed in 2004 constant prices. These constitute aceiling and also include the sums which, according to modulation arrangements1, will betransferred to and disbursed under the new Rural Development instrument.
62.
At their discretion, Member States may transfer additional sums from within this ceiling torural development programmes up to a maximum of 20% of the amounts that accrue to themfrom market related expenditure and direct payments. The European Council invites theCouncil, on the basis of a proposal from the Commission, to establish the modalities whichwill govern such transfers. Sums transferred to support rural development measures pursuantto such arrangements shall not be subject to the national co-financing and minimum spendingper axes rules set out in the Rural Development Regulation2.
1
2
Including those equivalent arrangements covering the cotton and tobacco sectors andadditional voluntary modulation at the discretion of individual Member States.Regulation 1698/2005
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63.
The allocation for the new Rural Development instrument, consisting essentially of amountstransferred from the funds supporting the regional component of the Convergence objectiveand amounts currently disbursed under the guarantee section of the EAGGF, will be€ 69.25 billion before modulation, of which € 40.73 billion is currently disbursed under theguarantee section of the EAGGF. The Commission will allocate total Rural Developmentexpenditure, including transfers from the EAGGF, and will ensure that at least € 33.01 billionis allocated to the EU10, Bulgaria and Romania. Of the remaining € 36.24 billion,€ 18.91 billion shall be allocated to the EU15 according to a key to be proposed by theCommission and agreed by the Council in line with the Rural Development Regulation(1698/2005) adopted on 20 September 2005, and the other € 3.57 billion will be allocated toAustria (€ 1.35 billion), Finland (€ 0.46 billion), Ireland (€ 0.50 billion), Luxembourg(€20 million), France (€0.1 billion) Sweden (€ 0.82 billion), and owing to the specificdifficulties of Portuguese agriculture outlined in the European Council conclusions on theCommission's report on Portuguese Agriculture (doc. 10859/03 AGRI 213) Portugal(€ 0.32 billion) not subject to the national cofinancing rules.
64.
The allocation for the new Fisheries instrument, consisting of amounts transferred from thefunds supporting the regional component of the Convergence objective and the RegionalCompetitiveness and Employment objective, will be € 3.8 billion.
65.
The amounts transferred to the Rural Development and Fisheries instruments from the fundssupporting the regional component of the Convergence objective have been determined byeach Member State after consultation with the Commission, drawing on the historicalpercentages of expenditure in these areas during the period 2000-2006 (2004-2006 for thenew Member States) as a reference point. They will not be subject to reallocation.
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HEADING 3A) – FREEDOM, SECURITY AND JUSTICE
66.
The area of Freedom, Security and Justice covers a range of issues which relate specifically tothe protection and rights of individual citizens. It includes the framing of a common policy onasylum, immigration and border control, taking a more effective, joint approach tocross-border problems such as illegal immigration and trafficking in and smuggling of humanbeings, as well as to terrorism and organised crime, promoting fundamental rights anddeveloping judicial cooperation in civil and criminal matters. It is a sector certain to continueto grow in importance in support of action by the Member States. The level of commitments,which represents 15% annual real growth compared to 2006, should not exceed:
SUB-HEADING 3a)200760020086902009790201091020111,050
(Million euros, 2004 prices)20121,20020131,390
HEADING 3B) – OTHER INTERNAL POLICIES
67.
A number of other actions concern in particular culture, youth, audiovisual matters and healthand consumer protection, areas where the Union has a role as a catalyst for action by MemberStates. The level of commitments, which represents stabilisation at levels 1% higher in realterms throughout the period covered by the Financial Perspective as compared to 2006,should not exceed:
SUB-HEADING 3b)20075202008520200952020105202011520
(Million euros, 2004 prices)20125202013520
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HEADING 4 – THE EU AS A GLOBAL PARTNER
68.
The Union is a global player, with a wide range of instruments as its disposal. It needs to beready to share in the responsibility for helping to reduce global poverty, including bycontributing to the achievement of the Millennium Development Goals, and to improve globalsecurity, and to have adequate funding to enable it to do so. The Union's external actions andpolicies are covered by Heading 4 and grouped in the main under the following instruments:Pre-accession, Stability, Development Cooperation and Economic Cooperation, Europeanneighbourhood and partnership, Humanitarian aid and Macrofinancial assistance. The levelof commitments, which represents close to 4,5% annual real growth compared to 2006,should not exceed:
HEADING 420076280200865502009683020107120
(Million euros, 2004 prices)201174202012774020138070
69.
On the basis of these levels of commitments, and noting the indicative figures proposed by theCommission for each of the objectives under this Heading, the European Council invites theCouncil, together with the European Parliament as appropriate, to come to a timely agreementthrough the legislative procedure on the content and appropriate funding of each of the fourproposed new instruments falling under this Heading in the light of the various prioritiesexpressed by the Member States.
70.
Cooperation with the ACP countries will be allocated € 22,682 million in current prices forthe period 2008-2013 under the existing inter-governmental European Development Fundframework. This amount is separate from the figures contained in the above table. Thecontribution key for financing this amount is as set out in Annex I.
71.
The emergency aid reserve and the provisioning of the loan guarantee fund will be financedthrough Heading 4. The emergency aid reserve will be fixed at a level of € 221 million andshould be adequately ring-fenced. The provisioning of the loan guarantee fund will beadequately funded as foreseen in the related legislative mechanism.
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72.
The Union should aim to ensure over the period 2007-2013 that at least 90% of its overallexternal assistance be counted as official development assistance according to the presentDAC definition. In addition, the Union should ensure that the relevant conclusions of theCouncil (GAERC) of 21-22 November 2005 on EU official development assistance are takeninto account in allocating such assistance between beneficiary countries.
73.
The European Council calls upon the Budgetary Authority to ensure a substantial increase inthe Common Foreign and Security Policy budget from 2007 in order to meet real predictableneeds, assessed on the basis of forecasts drawn up annually by the Council, together with areasonable margin for unforeseen activities.
HEADING 5 – ADMINISTRATION
74.
Taking account of the objective factors determining the current level of administrativeexpenditure, expenditure related to enlargement, increased operational activity and the effectof the new Statute, and savings made possible through efficiency gains and economies ofscale, the level of commitments for the Union's administrative expenditure should not exceed:
HEADING 520076720200869002009705020107180
(Million euros, 2004 prices)201173202012745020137680
75.
This Heading will, without prejudice to the Activity-Based Budgeting approach now used inestablishing the annual budget, lay down the ceiling for the administrative expenditure of allthe Institutions. The principle of budgetary discipline shall apply equally to all theinstitutions.
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PART II
REVENUE
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RESOURCES
76.
The ceilings for own resources will be maintained at their current levels of 1,31% of EU GNIfor appropriations for commitments and 1,24% of EU GNI for appropriations for payments.
77.
The own resources arrangements should be guided by the overall objective of equity. Thesearrangements should therefore ensure, in line with the relevant conclusions of the 1984Fontainebleau European Council, that no Member State sustains a budgetary burden which isexcessive in relation to its relative prosperity. These arrangements should accordinglyintroduce provisions covering specific Member States.
Changes to the Own Resources Decision
78.
The Own Resources Decision and the accompanying Working Methods paper shall bemodified so that the ratification process for the Own Resources Decision can be completed byall Member States to allow entry into force from no later than the beginning of 2009 and inorder to introduce the changes below. These changes shall take effect from 1 January 2007,and will be applied retroactively if necessary:
(a)
the rate of call (in effect the "uniform rate") of the VAT resource shall be fixedat 0,30%;
(b)
for the period 2007-13 only, the rate of call of the VAT resource for Austria shall befixed at 0.225%, for Germany at 0,15% and for the Netherlands and Sweden at 0,10%;
(c)
for the period 2007-13 only, the Netherlands will benefit from a gross reduction in itsannual GNI contribution of € 605 million. Sweden will benefit from a gross reductionin its annual GNI contribution of € 150 million over the same period;
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(d)
The UK budgetary correction mechanism (the UK abatement) shall remain, along withthe reduced contribution to the financing of the abatement benefiting Germany, Austria,Sweden and the Netherlands, as agreed at the 1999 Berlin European Council. The UKabatement remains in full on all expenditure except in relation to the new MemberStates as set out below.
Starting in 2013 at the latest, the UK shall fully participate in the financing ofenlargement costs for countries which have acceded after 30 April 2004 except for CAPmarket expenditure1. To this end the UK budgetary mechanism shall be adjusted byprogressively reducing the total allocated expenditure in line with the modalities inAnnex II.
During the period 2007-2013 the additional contribution from the UK shall not behigher than 10.5 billion euro, in comparison with the application of the current OwnResources Decision.
In case of future enlargement the additional contribution referred to above will beadjusted accordingly (except for Romania and Bulgaria).
1
Direct payments and market-related expenditure as well as that part of rural developmentexpenditure originating from the EAGGF guarantee section.
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PART III
REVIEW
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REVIEW
79.
Europeans are living through an era of accelerating change and upheaval. The increasingpace of globalisation and rapid technological change continues to offer new opportunities andpresent new challenges. Against this background, the European Council agrees that the EUshould carry out a comprehensive reassessment of the financial framework, covering bothrevenue and expenditure, to sustain modernisation and to enhance it, on an ongoing basis.
80.
The European Council therefore invites the Commission to undertake a full, wide rangingreview covering all aspects of EU spending, including the CAP, and of resources, includingthe UK rebate, to report in 2008/9. On the basis of such a review, the European Council cantake decisions on all the subjects covered by the review. The review will also be taken intoaccount in the preparatory work on the following Financial Perspective.
________________________
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ANNEX I
Cooperation with the ACP countriescontribution key
BelgiumBulgariaCzech RepublicDenmarkGermanyEstoniaGreeceSpainFranceIrelandItalyCyprusLatviaLithuaniaLuxembourgHungaryMaltaNetherlandsAustriaPolandPortugalRomaniaSloveniaSlovakiaFinlandSwedenUnited Kingdom
3,530,140,512,0020,500,051,477,8519,550,9112,860,090,070,120,270,550,034,852,411,301,150,370,180,211,472,7414,82
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ANNEX II
THE MODALITIES FOR ADJUSTING THE CALCULATIONOF THE UK ABATEMENT
The calculation of the UK abatement shall be adjusted through a progressive percentage reduction,as set out below, of the total allocated expenditure in Member States which have acceded after 30April 2004, except for CAP market expenditure as defined in the footnote to paragraph 77(d).
Percentage reduction2007200820092010201120122013002070100100100
The provisions of Article 4(f) of the Own Resources Decision shall cease to apply at the end of2013.
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