Union’s 2002 budget over 100 billion euro

Date: 10/05/01

By Simon Taylor

Budget chief Michaele Schreyer has tabled measures for 2002 to take EU spending above the €100 billion mark for the first time.

She said the plan, to be approved by member states and the European Parliament, reflected "the Commission's political priorities while maintaining our commitment to strict budgetary discipline".

Farm spending will continue to take the largest slice, accounting for 46% of spending at just over €41 billion. This sector will also see the biggest year-on-year rise in outlay at 5.3%.

The draft includes €1.145 billion to deal with the beef crisis caused by BSE and a further €420 million to cover veterinary measures including €250 million for the effects of foot-and-mouth disease (FMD).

The Commission wants to earmark a €1 billion reserve for unforeseen expenditure for FMD.

Structural funds spending will rise by just under 3% to €33.6 billion, while the budget for internal policies will increase by 4% with €4.05 billion for the last year of the fifth research and development programme.

In a bid to eradicate unspent aid for external relations programmes, which reached over €10 billion at one point, the Commission has proposed increasing payments for the Balkans by 55% next year and for cooperation projects with Mediterranean countries by 19%.

Overall foreign aid spending will fall by 2.4% next year with €200 million for Serbia taken from a special reserve.

Assistance to help prepare candidate countries for membership will rise by 39% as pre-enlargement programmes become operational in 2002.

Commenting on the 2002 budget, Schreyer said spending was €7.5 billion lower than originally planned and funds would be returned to members states through lower EU contributions to the budget this year.

Budget chief Michaele Schreyer has tabled measures for 2002 to take EU spending above the €100 billion mark for the first time.