Commission adopts daring budget planning for 2007-2013 

• sustainable development: growth, cohesion and employment (the Lisbon agenda and sustainable growth);
• the interest of the citizens: freedom, security and justice;
• strenghtening the Union's voice as a global partner.

In order to have the financial means to reach these political goals, the Commission is calling for an average spending level of 1.14 per cent over the seven-year period. Although the expenditure levels will increase in the first phase (due to enlargement), by the end of the period, in 2013, the budget needed would reach 143.1 billion euros. Over the whole period, the amounts needed will stay below the current financial ceiling of 1.24 per cent of GNI (gross national income).

Furthermore, the Commission has proposed re-arranging the structure of the current financial perspective into five budgetary headings:

• Heading 1: sustainable growth - including two sub-headings: 1a) competition for growth and employment; and 1b) cohesion for growth and employment;
• Heading 2: conservation and management of natural resources (including agriculture, fisheries and environment;
• Heading 3: citizenship, freedom, security and justice;
• Heading 4: the EU as a global partner;
• Heading 5: administration

In order to give "fair treatment for all Member States", the Commission proposes a generalised correction mechanism, which should "correct a budgetary burden deemed excessive in relation to a country's relative prosperity".

By summer 2004, the Commission will produce a report on the issue of "own resources" to determine whether a direct European tax is necessary or not.

In a press release on 9 February,President of the Parliament, Pat Cox, warned against "doing Europe on the cheap" and capping the EU's budget at 1 per cent of the EU's GNI. "In too much of European policy and politics, there are gaps between rhetoric and realisation, between lofty conclusions of agreements at Summits and delivery of a product in the end. This is not the time to do Europe on the cheap, nor is it the time for short termism, retreat or hesitation," Mr Cox stated.

On the other hand,German Finance Minister Hans Eichelreconfirmed the 'gang of six' position and said that the Commission would lose its credibility if it were to propose a budget ceiling of 1.24 per cent. According to Mr Eichel, the Commission cannot say at the same time that Germany has to cut its budget at home and then contribute more to the EU's budget. "Man kann nicht Wasser predigen und Wein trinken" [literally - "You cannot preach water and then drink wine"], said Mr Eichel.