When it considers that one of these reserves needs to be called on, the Commission will present a proposal for an appropriate transfer to the two arms of the budgetary authority.

Any Commission proposal to draw on the reserve for emergency aid must, however, be preceded by an examination of the scope for reallocating appropriations.

At the same time as it presents its proposal for a transfer, the Commission will initiate a trialogue procedure, if necessary in a simplified form, to secure the agreement of the two arms of the budgetary authority on the need to use the reserve and on the amount required.

If the Commission's proposal fails to secure the agreement of the two arms of the budgetary authority, and if the European Parliament and the Council are unable to agree on a common position, they will refrain from taking a decision on the Commission's proposal for a transfer.

III. IMPROVEMENT OF THE BUDGETARY PROCEDURE

16. The institutions undertake to provide appropriations in the budget to honor the Communities' internal and external legal obligations and policy commitments, with due regard for budgetary discipline and the fourth subparagraph of paragraph 13.

The European Parliament, the Council and the Commission confirm the principles and mechanisms concerning the agricultural guideline in accordance with the conclusions of the Edinburgh European Council.

The institutions agree that all expenditure under headings 2 and 3 of the financial perspective is non-compulsory expenditure.

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