The Commission's allocation of
financial resources in the Annual Policy Strategy
59. Each year, the Commission's statements on
changes in the allocation of financial resources in the Annual
Policy Strategy anticipate the publication of the Commission's
Preliminary Draft Budget, in which the Commission puts forward
its spending proposals for consideration by the Council and European
Parliament.[59] The figures
in the Preliminary Draft Budget for 2009 differ from those in
the Annual Policy Strategy, but not significantly. The Preliminary
Draft Budget has been scrutinised in detail by our Economic and
Financial Affairs Sub-Committee, Sub-Committee A, but we here
comment on whether the Commission seems to be backing up its priorities
in the Annual Policy Strategy with financial resources.[60]
60. The Commission in its Annual Policy Strategy
looked forward to requesting in the Preliminary Draft Budget an
increase of €619 million (5.8%) for the budget sub-heading
"Competitiveness for growth and employment", with the
money going particularly to the Lisbon Strategy goals of competitiveness,
sustainable growth and employment.[61]
According to the Commission's proposals, funds would also be directed
towards GALILEO and the European Institute of Innovation and Technology,
the European Electronic Communications Market Authority, the Agency
for the Cooperation of Energy Regulators, and preparatory action
for Global Monitoring for Environment and Security operational
services. More financial resources (an increase of €1,538
million, 2.5%) would also be channelled to the budget sub-heading
"Cohesion for growth and employment". Details on these
budget sub-headings were provided in the Commission's written
evidence (pp 18-19). While the Lisbon Strategy, GALILEO,
and the EIT are all mentioned in the Commission's priorities,
and Global Monitoring for Environment and Security services in
the Commission's key actions, the Electronic Communications Market
Authority and the Agency for the Cooperation of Energy Regulators
are not discussed beyond the financial allocation section. We
are not persuaded that the proposals for the Electronic Communications
Market Authority are necessary.[62]
We believe that the new agency is likely to increase regulatory
complexity and bring insufficient benefits for the costs involved.
61. According to the Commission's plan, under
the budget heading "Preservation and management of natural
resources" funds would be devoted to improved competitiveness
of agriculture, better environment in rural areas, enhanced quality
of life and diversification of the economy in the countryside.[63]
More resources would also go to LIFE+ (the EU's financial instrument
supporting environmental and nature conservation projects). In
the Preliminary Draft Budget, an increase of €1,966 million
(3.5%) is requested for this budget heading. The relationship
between this financial allocation and the Commission's priority
of climate change and a sustainable Europe, focussing on energy,
sustainable consumption, biodiversity, environmental law, maritime
policy and the Common Agricultural Policy is not obvious. The
Commission's written evidence highlights the money going to the
title "Environment and sustainable management of natural
resources, including energy" in line with the Bali Roadmap,
which is listed under the "Europe as a global partner"
heading (pp 15-16) (see below).
62. The Annual Policy Strategy foresaw an increase
of about €100 million (16%) for the sub-heading "Freedom,
security and justice", with large allocations of additional
funding going to external borders, visa policy, free movement
of people, and common immigration and asylum policies.[64]
More money would also go to the FRONTEX Agency, the European border
surveillance system, the establishment of an entry-exit system
and measures to facilitate travel at the external borders.[65]
This financial allocation matches the Commission's focus on
immigration. However, although the Commission and the Government
support measures to improve access to justice for citizens[66],
it would appear that no specific financial support has been allocated
to future projects in this area, which is disappointing. We hope
that, notwithstanding the lack of earmarked funding, the Commission
will propose specific projects including financial support to
improve access to justice in cross-border cases, such as funding
for video-conferencing, translators and action related to e-justice.
63. The Commission's statements on financial
resource allocation envisage savings of €20 million for large-scale
IT systems (SIS II, VIS and Eurodac) in 2009.[67]
We asked the Commissioner how these savings would be realised.
She said that since financial programming in 2005 the position
had changed: "[c]ertain actions initially foreseen in 2009
will not be carried out as they are not on the political agenda
and/or no legal basis is available (passport database, various
studies, and projects in the domain of border management)",
while the cost of the development of the Biometric component of
the VIS (Visa Information System) had fallen (p 18).
64. The Commission stated in the Annual Policy
Strategy that around €630 million was earmarked for the budget
heading "Citizenship", and indicated that this amounts
to an increase of 5.3%.[68]
The Commission said that this would allow more funding for key
actions including public health, consumer protection, civil protection,
cultural programmes and communication. The Commission gives
little detail here, but this allocation appears to be congruent
with the Commission's priorities under "Putting the Citizen
First". We would welcome more detail in the Annual Legislative
and Work Programme on the ways in which the Commission's commitment
to "Putting the Citizen First" will be translated into
practical action backed by adequate funding.
65. Regarding the budget heading "EU as
a global partner", the Commission described its prioritisation
of the Middle East peace process and the implementation of the
future status settlement of Kosovo.[69]
While the Commission committed to increasing the amounts planned
for Palestine and Kosovo, it said that the amounts will depend
on developments in 2008 so it would fine-tune its requests during
the budgetary procedure. The Commission noted that it would request
€243 million in the 2009 Preliminary Draft Budget for the
Common Foreign and Security Policy: while this is an increase
of 21% on its request for 2008, it is actually 15% smaller than
the amount finally allocated to this heading in the 2008 agreed
budget. Assistance for the new EU strategy on Central Asia would
be frontloaded in 2009 and 2010, and more money would go to the
title "Environment and sustainable management of natural
resources, including energy" in line with the Bali Roadmap.
It is not easy to see a close connection between the Commission's
priorities for "Europe as a World Partner" and the financial
allocation for external affairs, although this may be explained
by the fact that part of the funding for external affairs is not
distributed through the budget. For example the European Development
Fund, which is the main instrument for providing Community aid
for development cooperation in the African, Caribbean and Pacific
states and the Overseas Countries and Territories, does not come
under the Community budget. It is funded by the Member States,
subject to its own financial rules and managed by a specific committee.
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