Commission proposes reallocation of finances in favour of trans-European networks, research and SMEs
The Commission has proposed to adjust the appropriations established in the financial perspective 1993-1999 in order to better concentrate the Union's expenses on job-creating policies. This proposal is in response to the requests by the European Council to direct expenditure towards the stimulation of growth, competitiveness and employment. The Commission considers that, within this context, priority must be granted to the trans-European networks, to research and to small and medium-sized enterprises (SMEs). In concrete terms, the Commission proposes to re-classify under Heading 1 of the financial perspective (agriculture) certain types of expenditure related to agriculture, but which are currently classified within Headings 2 (structural funds) and 3 (internal policies). This redeployment of appropriations will, over a period of three years, allow for the release of a sum of ECU 2 billion, of which ECU 1.74 billion will be allocated to trans-European networks, research and SMEs as follows: - Trans-European networks: ECU 1 billion; - Fourth Framework Programme for research and technological development: ECU 700 million; - Small and medium-sized enterprises: ECU 40 million. The Commission's proposal for adjusting appropriations within the overall ceiling of the financial perspective for 1993-1999 satisfies two requirements: - It respects orthodox and tight budget management, which are particularly important in the run-up to Economic and Monetary Union; - It is a response to the wishes expressed by the European Council, the Council of Ministers and the European Parliament to attach particular importance to expenditure which stimulates growth, competitiveness and employment. The proposed adjustment of the financial perspective is also a response to calls from the Essen and Madrid European Councils for increased funding for trans-European networks, and to the provision made by the Council and the Parliament for the allocation of a supplementary budget of ECU 700 million to the EU research programmes.