2. 1 by Michael CHAMIER Director of Finance European Parliament ------ Maastricht, May 11, 2001 PRESENTATION

3. 2 E U BUDGET FACTS AND FIGURES 2001

4. 3 EUROPEAN UNION Multi - annual Financial Planning 1. February 1988 in Brussels First plan agreed by Member States 1988-1991 2. December 1992 in Edinburgh Second Plan 1994 - 1999

5. 4 EUROPEAN UNION Multi - annual Financial Planning 3. March 1999 in Berlin Third plan 2000 - 2006 Including enlargement 6 Member states Adjusted annually by C.P.I.

6. 5 EUROPEAN UNION NO BORROWING !!! NO DEBT !!!

7. 6 EUROPEAN UNION OWN RESOURCES Principle of “Divine Right” to collect revenues from Member states No Direct taxation - Yet

8. 7 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

9. 8 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

10. 9 EUROPEAN UNION Own Resources 2001

11. 10 EUROPEAN UNION GROSS CONTRIBUTIONS Budget 2001

12. 11 EUROPEAN UNION 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

13. 12 EUROPEAN UNION Financial Perspectives 2001 - 2006 (commitments - in € million) 15 Member states

14. 13 EUROPEAN UNION 2001 Budget How much ? Commitments € 96,24 billions or $ 90 billion Payments € 92,57 billions or $ 86 billion

15. 14 EUROPEAN UNION 80 % IS SPENT IN MEMBER STATES

16. 15 EUROPEAN UNION Expenditure 1994 compared to 2001

17. 16 EUROPEAN UNION Net beneficiaries 1999 Pro -rata Greece Portugal Ireland Spain

18. 17 EUROPEAN UNION Netherlands Luxembourg Germany United Kingdom Sweden Austria Finland Italy France Denmark Belgium Net Contributors 1999

19. 18 EUROPEAN UNION Financial perspectives 2000 - 2006 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) Enlargement + 12 M.S.

20. 19 EUROPEAN UNION 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

21. 20 EUROPEAN UNION 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.

22. 21 EUROPEAN UNION Approximate Staff numbers 2000 Commission Parliament Council Court of Justice Court of Auditors Committees 21 700 4 100 2 650 1 000 550 750 30 750

23. 22 EUROPEAN UNION ACTORS A) AUTHORIZING OFFICERS –For one or more Budget Items –Issue commitment + payment orders –Personally responsible

24. 23 EUROPEAN UNION 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

25. 24 EUROPEAN UNION C) ACCOUNTING OFFICER - Totally independent - Reports direct to President - Accounting Records - Banking and Treasury - Refuse payment - Overruling by President only - Official Annual Accounts

26. 25 EUROPEAN UNION D) INTERNAL AUDITOR - NEW

27. 26 EUROPEAN UNION DISCHARGE POLITICAL PROCEDURE COURT OF AUDITORS REPORT YEAR N - 2

28. 27 EUROPEAN PARLIAMENT NUMBER OF MEMBERS GERMANY99 UNITED KINGDOM72 FRANCE72 ITALY72 SPAIN50 POLAND50 ROUMANIA33 NETHERLANDS25 GREECE22 CZECH REPUBLIC20 BELGIUM22 HUNGARY20 PORTUGAL22 SWEDEN18 BULGARIA17 AUSTRIA17 SLOVAKIA13 DENMARK13 FINLAND13 IRELAND12 LITHUANIA12 LATVIA 8 SLOVENIA7 ESTONIA6 CYPRUS6 LUXEMBOURG6 MALTA5 T O T A L732