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2005/708/EC: Decision of the European Parliament and of the Council of 7 September 2005 on the revision of the financial perspective 2000 to 2006 article 0 CELEX: 32005D0708 The reform of the common agricultural policy adopted by the Council in September 2003 provides for a reduction in direct payments (modulation) to finance rural development policy to achieve a better balance between policy tools designed to promote sustainable agriculture and those designed to promote rural development and to finance additional rural development measures. The financial perspective set out in Annex I to the Interinstitutional Agreement on budgetary discipline and improvement of the budgetary procedure as revised by Decision 2003/430/EC hereinafter referred to as the ‘financial perspective’, should therefore be modified to take into account the effect of ‘modulation’ for the year 2006. As a consequence, commitment appropriations from subheading 1a ‘Common agricultural policy’ can be used to finance additional measures under subheading 1b ‘Rural development’, with no change in the ceiling of heading 1 ‘Agriculture’, |