§ Mr. Deakinsasked the Chancellor of the Exchequer if he will ask the European Economic Community Council of Finance Ministers to consider proposed common agricultural policy expenditure in the light of the financial guidelines on budget discipline and to make appropriate recommendations to the Council of Foreign Ministers before the common agricultural policy budget is finally approved.
§ Mr. Ian StewartThe Council's recent conclusions on budget discipline provide that the Council of Finance Ministers will each year at the beginning of the budgetary procedure set a maximum level of expenditure known as the reference framework) for the following financial year. This will include provision for CAP expenditure consistent with the financial guideline (ie. that the growth rate of market support expenditure will be less than the rate of growth in the own resources base).
The Commission has undertaken to draw up its proposals for agricultural prices in the light of the financial guideline. These proposals will be discussed in the Agriculture Council in the normal way. But a final decision may be referred to a special joint Council of Finance and Agriculture Ministers, if in the Commission's opinion the Council of Agriculture Ministers seems likely to take decisions whose cost would exceed that of the original proposals of the Commission. Decisions on budgetary provision will continue to be taken by the Budget Council.