European Commissioner for Budget Michaele Schreyer has called on the European Union (EU) Council of ministers and the European Parliament to find a rapid agreement on the financing of the 500 million euros (520 million US dollars) for the reconstruction in Kosovo, the European Commission said on November 9.

The 500 million euros which the Commission proposed for the reconstruction in Kosovo next year are necessary in order to fulfil the most urgent demand, Mrs. Schreyer said, adding "the need is especially high in the year 2000".

She said the EU executive's proposal is backed by the recent report "Towards stability and prosperity - a program for reconstruction and recovery in Kosovo", jointly prepared by European Commission and World Bank staff.

The report estimates external financing requirements until December 2000 at 1.1 billion US dollar with housing, energy and private sector development as being priority areas.

The EU Council, the EU's decision-making body, wants to finance the funding of the reconstruction in Kosovo next year by an across-the-board cut in external policy programs. Meanwhile, the parliament has rejected this approach in its first reading of the 2000 budget, the commission said.

The commission then proposed to finance the funding by redeployment, use of the flexibility reserve and a revision of the financial perspective in 2000. The report estimates the requirements for all donor financial assistance for the year 2000 at 1.1 billion US dollars and in total until 2003 at 2.3 billion US dollars.