Mr. Alex Shepherd (Durham, Lib.): Mr. Rabinovitch, as I understand the reallocation exercises going on in government, this is something that came in a recent budget announcement, that basically what we're going to do is from time to time take money away from, presumably, low-priority items to higher-priority items.

considers that the "Lisbon objectives" should remain a priority for the Union in the next financial framework, and that significant efforts must be made towards achieving the targets; considers that the budgetary means should be appropriate but realistic, increased but not overestimated, limited to subsidiarity and clear European added value; therefore fully supports the Commission proposal for research and TENs-T; proposes a global redeployment of EUR 4.7 billion from the margin and non-priority activities towards Heading 3 (+ EUR 1.3 billion), Heading 4 (+ EUR 2.7 billion) and lifelong learning (+ EUR 670 million), as well as an int ...[+++]ernal redeployment of EUR 200 million from TEN-E to the Social Agenda,

Prior to the reallocation of funds among the transport projects, the Commission should consult the budgetary authority to make sure that this complies with the priorities set by the European Parliament.

With reference to enlargement, I would once again like to clarify that what financial planning provided for the financing of new Member States in 2003 was provided exclusively for that purpose. We cannot redirect that, and also reject the option of doing so, but we do have the flexibility instrument.

If it were not for the estimated increase in revenue of $100 million this year and $245 million next year, the budget re-allocation made by the minister in charge of the Treasury Board would have resulted in an operational deficit of $134 million for this year and of $92 million for next year.

The Commission initially refused to pay the outstanding sum of EUR 6 000 for an exhibition on 28 European regions, arguing that it had not been duly notified about reallocations in the budget.