Michael CHAMIER

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PRESENTATION

• by
• Michael CHAMIER
• Director of Finance
• European Parliament
• ------
• Maastricht, May 11, 2001

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E U BUDGET
FACTS AND FIGURES 2001
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EUROPEAN UNION
Multi- annual Financial Planning

• . February 1988 in Brussels
• First plan agreed by Member States 1988-1991
• . December 1992 in Edinburgh
• Second Plan 1994 - 1999

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EUROPEAN UNION
Multi- annual Financial Planning

• . March 1999 in Berlin
• Third plan 2000 - 2006
• Including enlargement 6 Member states
• Adjusted annually by C.P.I.

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EUROPEAN UNION

• NO BORROWING !!!
• NO DEBT !!!

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EUROPEAN UNION OWN RESOURCES

• Principle of Divine Right to collect
• revenues from Member states
• No Direct taxation - Yet

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EUROPEAN UNION Own Resources 2000 - 2006

• Maximum 1,27 of GNP of 15 Member States
• Forecast for 2006 Expenditure is only 1,13 of
  GNP
• 0,14 Margin still available
• Calculated for 6 new Member States only

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EUROPEAN UNION Own Resources
VAT

• 1,0 of the base VAT revenue of each
• Member State
• Reducing to 0,5 by 2004
• VAT resources reduced in favour of GNP
• resource

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Own Resources 2001
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GROSS CONTRIBUTIONSBudget 2001
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UK rebate

• Thatcher 1984
• Unlimited in time
• Discrimination for 14 others who pay the
  difference
• Enlargement
• UK will only pay 1/3 of costs
• D NL Aut. SV to pay 25 less of UK
• difference from 2001

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Financial Perspectives 2001 - 2006 (commitments
- in million)
15 Member states
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2001 Budget
How much ?
Payments 92,57 billions or 86 billion
Commitments 96,24 billions or 90 billion
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• 80 IS SPENT IN MEMBER STATES

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Expenditure 1994 compared to 2001

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Net beneficiaries 1999 Pro -rata

• Greece
• Portugal
• Ireland
• Spain

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Net Contributors 1999

• Netherlands
• Luxembourg
• Germany
• United Kingdom
• Sweden

• Austria
• Finland
• Italy
• France
• Denmark
• Belgium

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Financial perspectives 2000 - 2006
Enlargement 12 M.S.

• Nice Treaty
• 2004/5 - First M.S. should join
• Berlin agreement 1999 includes cost of
  enlargement
• for 6 new Member States only
• Agriculture costs estimated at 3,5 billion
• Margin still available (0,14 GNP)

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Financial Perspectives 2000 - 2006 Problems

• But revision likely
• End 2002, review Agriculture sector
• WTO - Next Round
• Enlargement
• agriculture 5- 7 billion for 12 Member States
• structural - Iberia
• UK Rebates
• Commission Review end 2002

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Financial Perspectives 2000 - 2006
Modifications

• Possible solution
• New Financial perspectives for 2005 -2010
• But, maximum 1.27 GNP is sufficient
  for enlargement 12 m.s.

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Approximate Staff numbers 2000

• 21 700
• 4 100
• 2 650
• 1 000
• 550
• 750
• 30 750

• Commission
• Parliament
• Council
• Court of Justice
• Court of Auditors
• Committees

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• ACTORS
• A) AUTHORIZING OFFICERS
• For one or more Budget Items
• Issue commitment payment orders
• Personally responsible

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• B) FINCANCIAL CONTROLLER
• - Totally independent
• - Reports direct to President
• - Issues Visa to all commitments and
  payments
• - Refusal of Visa
• - Overruling by President only
• - Personally responsible

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• C) ACCOUNTING OFFICER
• - Totally independent
• - Reports direct to President
• - Accounting Records
• - Banking and Treasury
• - Refuse payment
• - Overruling by President only
• - Official Annual Accounts

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• D) INTERNAL AUDITOR - NEW

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• DISCHARGE
• POLITICAL PROCEDURE
• COURT OF AUDITORS REPORT
• YEAR N - 2

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EUROPEAN PARLIAMENTNUMBER OF MEMBERS

• GERMANY 99
• UNITED KINGDOM 72
• FRANCE 72
• ITALY 72
• SPAIN 50
• POLAND 50
• ROUMANIA 33
• NETHERLANDS 25
• GREECE 22
• CZECH REPUBLIC 20
• BELGIUM 22
• HUNGARY 20
• PORTUGAL 22
• SWEDEN 18
• BULGARIA 17
• AUSTRIA 17
• SLOVAKIA 13
• DENMARK 13
• FINLAND 13