Working Document No 7 on the Preliminary Draft Budget by icecube

VIEWS: 9 PAGES: 20

									Working Document No 7 on the
Preliminary Draft Budget 2008 – first analysis



                         by Kyösti Virrankoski
                      General Rapporteur 2008




                                             1
EP priorities for the 2008 budget

•   Competitiveness and cohesion
•   Energy and climate change
•   Meeting the challenges of globalisation
•   Effective governance and responsible
    administration




                                              2
Policies and tools for delivering these
priorities

•   Lisbon agenda (R + D, energy policy)
•   Effective implementation of structural/ cohesion
    funds
•   Projecting climate change priorities internationally
•   Full involvement of EP in oversight of EU
    budgetary spending towards better governance
    and responsible administration
•   And Today is an opportunity to take the views of
    national parliaments into account



                                                           3
Structure of the presentation

•   Overview of figures
•   Rapporteur's priorities - a budget for results
    (ABM/ ABB)
•   Key points by MFF heading
•   Agencies
•   Pilot Projects and Preparatory Actions




                                                     4
 Summary figures: PDB 2008
 (EUR, current prices)




    PDB 2008                    Commitments                       Payments
   MFF ceiling                 131 487 million                129 481 million
    PDB 2008                  129 167,5 million              121 582,4 million
      Margin                    3 135 million*               8 214,9 million**
% growth 2008/07                       2,0%                           5,3%

   * GAF, Emergency aid reserve, pensions figure do not count against CA margin
   ** Emergency aid reserve, pensions do not count against PA margin




                                                                                  5
                                                                                            PDB 2008
                     Heading                    MFF ceiling                                                                            Margin
                                                                           Commitments                      Payments
              1a.                                9 847 000 000             *10 270 429 000                 9 538 679 600                76 571 000
              Competitiveness
              for growth and
              employment
              1b. Cohesion for                 46 889 000 000                46 877 941 445              40 622 714 507                 11 058 555
              growth and
              employment
              2. Preservation and              58 800 000 000                56 275 831 496              54 770 478 053            2 524 168 504
              management of
              natural resources
              3a. Freedom,                         747 000 000                    691 034 000                496 446 000                55 966 000
              security and justice
              3b. Citizenship                      615 000 000                    598 493 000                694 383 006                16 507 000
              4. The European                    7 002 000 000             **6 911 414 000                 7 916 743 400              329 804 000
              Union as global
              partner
              5. Administration                  7 380 000 000            ***7 355 714 836                 7 336 274 836              121 285 164
              6. Compensation                      207 000 000                    206 636 292                206 636 292                    363 708
              Total                          131 487 000 000               129 167 494 069             121 582 355 694             3 135 723 931

* including appropriations of EUR 500 million related to the European Globalisation Adjustment Fund which do not count for the margin
** including appropriations of EUR 239,2 million related to the Emergency Aid Reserve which do not count for the margin
*** including appropriations of EUR 77 million related to footnote (1) of the Financial Framework 2007 - 2013 (staff contributions to the pensions scheme)
    which do not count for the margin                                                                                                                   6
    Changes relative to budget 2007


                                                          Increase / Decrease
                     Heading                          PDB 2008 compared to B'2007
                                                     Commitments        Payments
1a Competitiveness for growth and employment               + 9,6%            + 35,4%
1b Cohesion for growth and employment                       + 3,1%           + 7,5%
2 Preservation and management of natural resources            0,0%           + 0,1%
3a Freedom, security and justice                           + 10,8%           + 4,8%
3b Citizenship                                               - 7,6%           - 4,6%
4 The European Union as a global partner                    + 1,5%           + 7,7%
5 Administration                                            + 5,7%           + 5,7%
6 Compensation                                             - 53,5%           - 53,5%
Total                                                       + 2,0%           + 5,3%



                                                                              7
Rapporteur's comments - a budget
for results

•   Need clear presentation of spending objectives
    and outcomes
•   Need further improvements in activity statements
•   Need to scrutinise responsibilities and
    accountability of agencies
        - EUR 312 m in agency “administration”
        - EUR 73 m requested for executive agencies
•   Front/ back-loading issues
•   Need better efforts by Member State audit
    authorities towards DAS (IIA Art. 44)

                                                   8
Heading 1a - competitiveness for
growth and employment

•   EIT funding is complex (EUR 308 m on line, with
    EUR 1,5 bn from FP7, CIP, Str. Funds in total!)
•   Risk of overlapping research initiatives
    - Networks of excellence vs. KICs
    - EIT vs European Research Councils
•   Galileo is also problematic (gap of EUR 2,4 bn)
    - the EP saw this coming in the IIA negotiations!
•   Globalisation Adjustment Fund as yet untested



                                                        9
Heading 1b - Cohesion for growth
and employment

•   Cancelled payments appropriations in B2006
    totalled EUR 3,3 bn!
•   Structural and cohesion funds are a time limited
    opportunity for the newest (EU 12) member states
•   They should maximise implementation rates
•   RALs are very large (EUR 93.2 bn) = 70% of total
•   Complex rules/ bureaucratic implementation
    should be avoided




                                                  10
Heading 2 - preservation and
management of natural resources

•   H 1a and 1b together (EUR 57 174 m) exceed H 2
    (56 275 m) in CA for the first time in PDB 2008
•   PDB should set out clearly for "market-related
    expenditure and direct payments": the
    commitment appropriations; the "adjusted" ceiling
    given compulsory modulation; and the margin
        - see next slide!
•   More clarity is needed on environmental priorities




                                                    11
  Heading 2 - preservation and
  management of natural resources

                                                     * in mio €, 2008 prices



Sub-heading for "market-related expenditure and direct payments"
Ceiling (less compulsory modulation)        44 954
PDB 2008                                    42 499
Sub-heading margin                           2 455




                                                                  12
Heading 3a - Freedom, security and
justice

•   A significant increase (+10,8% in commitments) is
    requested
•   Many agencies under this heading. FRONTEX/
    RABIT a priority?
•   Also a major EP pilot project on "migration
    management"




                                                   13
Heading 3b - citizenship

•   Very small margin (EUR 16,5 million)
•   Scope to do more on communication policy? But
    divergent views...
•   Very political issue ahead of elections in 2009




                                                      14
Heading 4 - The EU as a global
partner

•   Margin (EUR 329,9 m) is artificially high
•   Likely additional requests for Kosovo and
    Palestine (timing unclear?)
•   CFSP rises by 25,6% in the PDB
•   Implementation important in first "full year" of new
    programmes




                                                       15
Heading 5 - Administration

•   Responsible administration/ effective governance
    are the over-arching aims
•   Commission sticks to multi-annual plan on posts
•   Commission has delivered its screening report as
    requested by EP
•   But re-deployment of 1% looks unambitious




                                                   16
Agencies/ Executive agencies

•   Need to keep a lid on administrative costs
•   Ensure that "executive agencies" are accountable
•   Need a clear presentation of permanent/
    temporary/ contract staff
•   Are chains of accountability becoming too long?
•   Executive agencies should not grow “like
    mushrooms" (a guideline trade-off ratio is needed
    for redundant posts in the “mother” Commission
    Directorate-General when a new EA is set up?)



                                                    17
Pilot projects (PPs) and preparatory
actions (PAs)

•   According to the IIA, EUR 40 m is available for
    PPs and a total of EUR 100 m for PAs: 50 m for
    new PAs + EUR 50 m for existing PAs
•   All budgeted as "p.m." so all appropriations count
    against the margin
•   Note the IIA deadline of 15 June, but recognise
    our 1st reading procedure
•   Would welcome ideas and indications on projects




                                                     18
DETAILS OF RESOURCES (as set out in the financial statement of the Commission proposal)
Objectives of the proposal in terms of their financial cost and resource (scenario of 6 KICs in 2013)

       Cost                                     2008    2009    2010      2011      2012      2013      Total
       EIT governing structure                  2.900   5.800   8.700     8.700     8.700     8.700     43.500
       Knowledge and                            0.000   0.000   220.800   303.600   441.600   662.400   1,628.400
       Innovation Communities

       Grants for Master students               0.000   0.000   5.600     20.600    45.200    73.800    145.200
       and PhD candidates

       Improvement of                           0.000   0.000   100.000   150.000   150.000   150.000   550.000
       innovation /research
       /education capacity
       Total costs                              2.900   5.800   335.100   482.900   645.500   894.900   2,367.100
       Resources
       Local authorities and                    0.000   0.000   47.080    113.040   133.740   233.100   526,960
       Member States,
       Enterprises, EIB loans,
       Venture Capital, (directly to
       KICs or directly to EIT depending on
       source)

       Community budget                                         238.020   309.860   436.760   545.800   1,531.440
       (programmes: FP7, CIP, LLL, Structural
       Funds: ERDF, ESF) (directly to KICs)
       Awarded in accordance with respective
       programme procedures.

       Community budget                         2.900   5.800   50.000    60.000    75.000    115.000   308.700
       (unallocated margin, subheading 1A)
       (directly to EIT)


       Total resources                          2.900   5.800   335.100 482.900 646.500 894.900 2,367.100
•   Thank you!
•   We will achieve most by working together!




                                                20

								
To top