§ Sir Teddy TaylorTo ask the Chancellor of the Exchequer what is his latest estimate of spending by the EC, expressed in pounds sterling in 1992; and what percentage increase in this spending is envisaged by 1999 following the Edinburgh Council of 11–12 December.
§ Sir John CopeFollowing the adoption of the third supplementary and amending budget, the budget of the European Communities for 1992 amounts to 63,907 million ecu in commitment appropriations, or £52 billion, at the exchange rate prevailing on 30 November 1992 (£1 = ECU 1.2290) and 61,097 million ecu in payment appropriations, or £49.7 billion. The Edinburgh European Council agreed a financial perspective for the next seven years which provides ceilings for spending in 1999 of 84,089 million ecu, £68.4 billion, for commitment appropriation and 80,114 million ecu, £65.2 billion, for payment appropriations—all in 1992 prices. These represent increases of 31.6 per cent. and 31.1 per cent. respectively over spending in 1992.
However, the 1999 figures are ceilings for the budget, not targets for spending levels. Actual spending in 1999 548W will be set in the budgetary procedure for that year and will reflect the rate of economic growth achieved in the next seven years, as well as other factors such as enlargement of the Community. Spending is constrained by the legally binding ceiling on own resources for payment appropriations, which will be 1.27 per cent. of Community GNP in 1999.