In the longer term beyond 2006, the Council agreed that the total annual outlay on market related expenditure and direct payments should not exceed the amount in real terms of the ceiling set for these expenditures for the existing Union for 2006 by the Berlin European Council plus expenditure for the ten new member states. This amounts to a total of €45.3 billion which constitutes the baseline for future years. The Council decided that expenditure in nominal terms over the years 2007 to 2013 should be kept within the baseline, increasing by 1% per annum. This will provide funding of €48.6 billion in 2013. I am confident that, based on current best estimates of expenditure for the years ahead, this level of funding will be sufficient to provide for the costs of the market-related expenditure and direct payments in a Union of 25 member states.