Financial Perspectives: Agenda 2000-2006

Group work 2

Financial perspectives: Agenda 2000-2006

- Economics of the European Integration and the Spanish Economy -

Table of Content

Introduction 3

Agricultural funding in the 2000-2006 Agenda 3

Background 3

Reform 3

Structural policy reform 3

Community Initiatives 3

Decentralised management 3

The Cohesion Fund 3

Preparation for accession 3

Conclusion 3

References 3

Appendix 3

Appendix 1 3

Introduction

In March 1999 one of the most comprehensive reforms, the “Berlin-Packet” of the Agenda 2000, in the history of the European Union was determined. The funding volume of the reforms amounts to 750 billion Euro. The Packet included a financial framework until 2006, far-reaching Reforms of the Common Agricultural Policy (CAP) and the structural policy as well as changes for financial system of the EU.

The agreement was the condition for the continuation of a common European structural policy and was supposed to pave the way for the enlargement of the Union.

The financial framework until 2006

To manage the enlargement the European Union had to reorganize its future financing – the budget of the EU. The expenditures scheduled in the financial perspective of course could not exceed the available funds of the period in question. The institutions of the European Union were aware of ensuring a solid financial management, while making it possible to finance essential requirements. The ceiling amount of own resources for the period between 2000 and 2006 was kept by 1.27% of gross national product (GNP).

This ceiling, however, was not fully utilised in the given period and the total appropriations for commitments decreased from approximately 92 billion Euros in 2000 to around 90.3 billion Euros in 2006. This budgetary discipline had the aim to shoulder the costs of the eastern enlargement within an own resources ceiling of the mentioned 1.27% of the Unions GNP.

Agricultural funding in the 2000-2006 Agenda

The European policy of...