# EUR-Lex - 52013DC0183 - EN

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# 52013DC0183

**DRAFT AMENDING BUDGET N° 2 TO THE GENERAL BUDGET 2013 GENERAL STATEMENT OF REVENUE STATEMENT OF EXPENDITURE BY SECTION Section III – Commission /* COM/2013/0183 final */**

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DRAFT AMENDING BUDGET N° 2
TO THE GENERAL BUDGET 2013

GENERAL STATEMENT OF REVENUE
STATEMENT OF EXPENDITURE BY SECTION
Section III – Commission

Having regard to:

–
the Treaty on the Functioning of the European
Union, and in particular Article 314 thereof, in conjunction with the
Treaty establishing the European Atomic Energy Community, and in particular
Article 106a thereof,

–
the Regulation (EU, Euratom) No 966/2012 of the
European Parliament and of the Council of 25 October 2012 on the Financial
Regulation applicable to the general budget of the Union[1], and in particular
Article 41 thereof,

–
the general budget of the European Union for the
financial year 2013 adopted on 12 December 2012[2],

–
the draft amending budget No 1/2013[3], adopted on 18 March 2013,

The European
Commission hereby presents to the budgetary authority the draft amending budget
No 2 to the 2013 budget.

CHANGES TO
THE STATEMENT OF REVENUE AND EXPENDITURE BY SECTION

The changes to
the statement of revenue and expenditure by section are available on EUR-Lex (http://eur-lex.europa.eu/budget/www/index-en.htm).
An English version of the changes to this statement is attached for information
as a budgetary annex.

TABLE OF CONTENTS

1.      Introduction.. 4

2.      Increase in revenue. 4

3.      General context: shortage of payment appropriations.. 5

4.      Reinforcement of Payments by Heading of the Financial Framework.. 6

4.1.        Heading
1a 3⁄4 Competiveness for Growth and Employment.. 6

4.2.        Heading
1b 3⁄4 Cohesion for Growth and Employment.. 9

4.3.        Heading 2 3⁄4 Preservation
and Management of Natural Resources. 11

4.4.        Heading
3a 3⁄4 Freedom, Security and Justice. 12

4.5.        Heading
3b 3⁄4 Citizenship. 13

4.6.        Heading 4 3⁄4 EU
as a Global Player.. 14

5.      Conclusion.. 16

6.      Summary table by heading of the Financial Framework.. 17

1.           Introduction

Draft amending budget
(DAB) No 2 for the year 2013 covers the following:

3⁄4
an increase in the
forecast of other revenue stemming from fines and penalties, amounting to EUR 290 million;

3⁄4
an increase of payment appropriations of EUR 11,2 billion
across headings 1a, 1b, 2, 3a, 3b and 4 of the multi-annual financial framework
(MFF). This is with the aim of meeting outstanding needs to the end of the
year, so that obligations stemming from past and current commitments can be
honoured, financial penalties avoided, and beneficiaries can receive the funds
envisaged by the agreed EU policies, for which Parliament and Council
authorised the related commitment appropriations in previous annual budgets. The
requested additional payment appropriations will reduce the level of
outstanding commitments (‘reste à liquider’, RAL) as well as the risk of
rolling over onto 2014 abnormal levels of unpaid bills.

In accordance with Art.
41(2) of the Financial Regulation, the request for additional payment
appropriations takes account of the possibilities for internal redeployment,
and therefore reflects the net increase in the level of payments that is required
to meet year-end needs across the 2013 budget. In turn, the increase in the
revenue from fines and penalties will lessen the effect of the
DAB No 2/2013 on Member States’ GNI-based contributions.

The total amount of
payment appropriations requested is EUR 11 225,2 million, leaving
an unallocated margin of EUR 14,8 million under the 2013 ceiling for
payments of the multi-annual financial framework, which is expected to cover
known requests in the pipeline for the mobilisation of the EU Solidarity Fund.

The requested payment
appropriations will allow all the legal obligations left pending at the end of
2012, and those arising in 2013, to be covered in the 2013 budget. This will
avoid any abnormal carry-over into 2014 of payment needs that should have been
addressed in the financial year 2013. Since the 'N+3' decommitment rule under
cohesion policy ends this year, experience leads the Commission to consider that
it will receive an increased share of payment claims very late in the year, too
late for payment. These claims will be met in the beginning of 2014.

The request for EUR 11 225,2 million
is detailed below. It brings the level of payment appropriations very close to
the MFF payments ceiling set for 2013. This proposal means that no further
amending budgets can be proposed later in the year without requiring an
amendment to the MFF (which would require unanimity in the Council). Under
current and foreseeable circumstances the Commission does not intend to request
further payment appropriations in 2013.

2.           Increase
in revenue

The
voted budget 2013 contains an initial estimate of revenue of
EUR 100 million from fines and penalties under revenue chapter 7 1 3⁄4 ‘Fines of the revenue side of the
budget’. Taking into account the amounts that at this stage of the year are
cashed or are expected to be cashed, it is proposed to increase the initial
forecasts for revenue from fines and penalties by EUR 290 million, of
which EUR 270 million relates to fines (revenue article 7 1 0)
and EUR 20 million to penalty payments imposed on a Member State
(revenue article 7 1 2). In accordance with Article 83 of
the Financial Regulation, the Commission shall record the amounts received by
way of fines, penalties and sanctions as soon as the decisions imposing them
may no longer be overruled by the Court of Justice of the European Union. This
increase in revenue from fines and penalties will reduce accordingly the effect
of the present draft amending budget on Member States’ GNI-based contributions.

In April 2013, the Commission will propose a further revision of
the revenue side of the budget in order to budget any surplus resulting from
the implementation of the budget year 2012, which will be entered as revenue in the 2013 budget, in accordance with Article 18 of the Financial
Regulation.

3.           General context: shortage of payment
appropriations

3.1       Voted budget 2013: a low
starting point for payments

The
authorised budget for 2013 set the level of payment appropriations at EUR 132,8 billion,
EUR 5 billion below the Commission’s draft budget proposal and EUR 2,9 billion
below the final level of payments in the 2012 budget, creating a very tight
situation for payments as from early 2013 and a shortfall in payment appropriations
earlier than last year. This is in the knowledge that the Commission’s request
for payment appropriations in the 2013 draft budget had been drawn up assuming
that the payment needs related to the financial year 2012 would be fully paid
in 2012, so as not to create an abnormal backlog of unpaid payment claims at
year-end. However, the additional payment appropriations authorised in the
Amending Budget No 6/2012 were lowered by EUR 2,9 billion
in respect to the amount proposed by the Commission, and were not at the level
of all payment claims received at that moment.

3.2       Declarations
accompanying the voted budget 2013

When agreeing on a
reduction of the level of payment appropriations for 2013 as compared to the
Commission’s draft budget, the European Parliament and the Council in a joint
statement with the Commission, signed on 10 December 2012 ‘asked the Commission
to initiate any necessary action according to the Treaty and, in particular, to
request additional payment appropriations in an Amending Budget if the
appropriations entered in the 2013 budget prove insufficient to cover
expenditure under sub-heading 1a (Competitiveness for growth and
employment), sub-heading 1b (Cohesion for growth and employment), heading 2
(Preservation and management of natural resources), heading 3
(Citizenship, freedom, security and justice) and heading 4 (EU as a global
player)’. For their part, the Council and the European Parliament undertook to
‘take position on any draft amending budget as quickly as possible in order to
avoid any shortfall in payment appropriations’.

Moreover, the European
Parliament and the Council agreed on a joint statement on payment needs for
2012, since the additional payment appropriations authorised in the Amending
Budget No 6/2012 were lowered by EUR 2,9 billion in respect
to the amount proposed by the Commission, and were not at the level of all payment
claims received at that moment. As part of this joint declaration, the
Commission undertook to ‘present at an early stage in the year 2013 a draft amending
budget devoted to the sole purpose of covering the 2012 suspended payment
claims as soon as the suspensions are lifted, and the other pending legal
obligations without prejudice to the proper implementation of the 2013 budget’.
Similarly, the Council and the European Parliament undertook to ‘take position
on this draft amending budget as quickly as possible in order to cover any
outstanding gap’.

In light of these two
declarations, the Commission now presents a draft amending budget covering
payment needs across headings both for reasons of consistency and sound
financial management, providing the Budgetary Authority with a full overview of
the updated payment needs until the end of the year, at as early a stage of the
year as possible, and allowing the Union budget to assume its financial
obligations towards national and local authorities as well as other final
beneficiaries within acceptable time limits.

3.3       Review
of payment needs 2013

The Commission has undertaken a careful assessment of
needs to meet obligations in 2013. On that basis this draft amending budget aims
at adjusting the level of payment appropriations available across budget lines
to address identified payment shortages. In terms of breakdown of the
additional payment appropriations by MFF heading, EUR 9,0 billion
(corresponding to 80 % of the overall reinforcement) are requested for heading
1b, whereas some further EUR 2,2 billion cover needs in other
expenditure headings (see table below).

In EUR
million

Payment appropriations by MFF Heading || 2013 Budget (incl. DAB 1) || DAB 2 || Share in DAB 2 || Proposed increase compared to

2013 Draft Budget || 2013 Budget (incl. DAB 1)

1a || Competiveness for Growth and Employment || 11 904,0 || 982,6 || 8,8 % || -5,0 % || 8,3 %

1b || Cohesion for Growth and Employment || 47 348,4 || 9 001,1 || 80,2 % || 15,1 % || 19,0 %

2 || Preservation and Management of Natural Resources || 57 487,0 || 608,5 || 5,4 % || 0,3 % || 1,1 %

3a || Freedom, Security and Justice || 917,7 || 128,4 || 1,1 % || 12,8 % || 14,0 %

3b || Citizenship || 639,1 || 15,2 || 0,1 % || -0,2 % || 2,4 %

4 || EU as a Global Player || 6 409,4 || 489,5 || 4,4 % || -5,1 % || 7,6 %

5 || Administration || 8 430,4 || || || ||

6 || Compensations || 75,0 || || || ||

Total || 133 211,0 || 11 225,2 || 100,0 % || 4,8 % || 8,4 %

Of which headings 1a, 2, 3a, 3b and 4 || 77 357,2 || 2 224,1 || 19,8 % || -0,9 % || 2,9 %

As shown in the
table, when excluding heading 1b, the request for additional payment
appropriations for the other headings combined remains slightly below the corresponding
level of payment appropriations requested in the draft budget 2013. This shows
that the Commission has carefully reassessed its payment needs. In the
particular case of heading 3a, however, the assessment of year-end needs has led
the Commission to request additional payment appropriations as compared to the
2013 draft budget, notably to take into account the growing needs for
intermediate and final payments for the four Funds under Solidarity and
Management of migration flows.

The sections below set out
the net impact of the updated year-end needs for payment appropriations, by MFF
heading.

4.           Reinforcement
of Payments by Heading of the Financial Framework

4.1.        Heading 1a 3⁄4 Competiveness for Growth and Employment

The level of payment
appropriations in the voted budget 2013 for heading 1a is EUR 177,5 million
below the level of payment appropriations authorised in the final budget 2012
and EUR 1,7 billion below the Commission’s request in the 2013 draft
budget. However, the level of commitment appropriations for heading 1a in the
2013 budget increases by 4,8 % over the 2012 budget, in line with the
trend from previous years. Moreover, the implementation of payment
appropriations in 2012 was significantly higher than in previous years, which shows
the implementation of the programmes on the ground. These facts, combined with
a careful analysis of the specific needs of individual budget lines, underpin
the need for a significant increase of payment appropriations in 2013.

The
overall request for reinforcement of payment appropriations in heading 1a
amounts to EUR 982,6 million, broken down as follows:

Budget Line || Heading || Payments (EUR million)

02 02 01 || Competitiveness and Innovation Framework Programme — Entrepreneurship and Innovation Programme || 60,000

02 02 15 || European Earth monitoring programme (GMES) || 10,500

02 03 01 || Operation and development of the internal market, particularly in the fields of notification, certification and sectoral approximation || 0,650

02 03 04 01 || Support to standardisation activities performed by CEN, Cenelec and ETSI || 1,900

02 04 01 01 || Space research || 34,500

02 04 01 02 || Security research || 50,000

02 04 01 03 || Research related to transport (Galileo) || 40,000

02 05 01 || European satellite navigation programmes (EGNOS and Galileo) || 20,000

04 05 01 || European Globalisation Adjustment Fund (EGF) || 13,000

08 02 01 || Cooperation — Health || 200,000

08 03 01 || Cooperation — Food, agriculture and fisheries, and biotechnology || 65,000

08 05 01 || Cooperation — Energy || 20,000

08 06 01 || Cooperation — Environment (including climate change) || 40,000

08 08 01 || Cooperation — Socioeconomic sciences and the humanities || 12,495

08 10 01 || Ideas || 35,000

08 13 01 || Capacities — Research for the benefit of small and medium-sized enterprises (SMEs) || 20,000

08 14 01 || Capacities — Regions of knowledge || 2,727

08 15 01 || Capacities — Research potential || 0,805

08 16 01 || Capacities — Science in society || 8,000

08 18 01 || Capacities — Risk-sharing finance facility (RSFF) || 0,751

08 21 01 || Euratom — Nuclear fission and radiation protection || 7,150

08 22 03 01 || Completion of the sixth EC framework programme (2003 to 2006) || 7,804

09 03 01 || Competitiveness and Innovation Framework Programme — Information and Communication Technologies Policy Support Programme (ICT PSP) || 32,000

09 04 01 01 || Support for research cooperation in the area of information and communication technologies (ICTs — Cooperation) || 85,000

10 02 01 || Non-nuclear activities of the Joint Research Centre (JRC) || 2,000

10 03 01 || Nuclear activities of the Joint Research Centre (JRC) || 2,000

10 05 01 || Decommissioning of nuclear installations and waste management || 4,000

12 04 01 || Specific activities in the field of financial services, financial reporting and auditing || 1,443

14 02 01 || Implementation and development of the internal market || 0,500

14 04 02 || Customs 2013 || 9,000

14 05 03 || Fiscalis 2013 || 6,000

15 02 02 || Erasmus Mundus || 6,000

15 02 22 || Lifelong learning programme || 120,000

15 07 77 || People || 45,000

26 03 01 01 || Interoperability Solutions for European Public Administrations (ISA) || 10,000

29 02 03 || Completion of the Union Statistical Programme 2008 to 2012 || 9,376

Total || 982,601

Research Framework Programmes: EUR 678,2 million

The
request for additional payment appropriations for heading 1a is mostly related
to the payment needs of the Research Framework Programmes, which were heavily
cut in the voted budget 2013. The review of year-end payment needs carried out
in March 2013 generally confirmed the Commission’s request contained in
the draft budget 2013, also taking into account that actual execution in 2012
was 11 % above the level of execution in 2011. That is why it is proposed
to increase the level of payments for a series of research budget lines. This
will enable the Commission to meet its needs for intermediate payments and
final payments, as well as for pre-financing payments in order to respect
payment time limits as laid down in the new Financial Regulation, notably as
regards time to grant and time to pay. It is important for the Commission to be
able to sign the grant agreements foreseen in 2013 on time as a large number of stakeholders (universities, research
institutions, SMEs, and industries) are depending on EU support to go ahead
with their research projects. Delaying the signature of these grant agreements
would disrupt the already complex planning and programming process leading to
delay in the recruitment of scientists, difficulties in their availability and
instabilities of consortiums and would go counter to the EU's priority
objectives.

Competitiveness and Innovation
Framework Programme: EUR 92,0 million

As a consequence of the
severe cuts in the voted budget 2013, the CIP 3⁄4 Entrepreneurship
and Innovation Programme (EIP) and the CIP 3⁄4 Information
and Communication Technologies Policy Support Programme (ICT-PSP) are expected to run out of payment appropriations in June
and September 2013, respectively. The additional appropriations requested will
enable the Commission to meet its needs for pre-financing payments linked to
commitments signed in 2012, as well as for intermediate payments and final
payments, while respecting payment time limits as laid down in the new
Financial Regulation, notably as regards time to grant and time to pay. For
Eco-innovation and Entrepreneurship actions, failure to increase payment appropriations
would lead to an interruption of interim and final payments on ongoing
contracts and grant agreements by June 2013. In turn, this would cause
significant damage to the beneficiaries, which in many cases are European small
and medium-sized enterprises (SMEs). On all these contracts, interest on late
payments would accumulate until additional appropriations become available.

GMES and Galileo:
EUR 30,5 million

The two key European satellite
navigation systems (GMES and EGNOS-Galileo) are entering into their operational
phase, and additional payment appropriations (amounting to EUR 10,5 million
for GMES and EUR 20 million for EGNOS-Galileo) are needed to pay
contracts, notably for the agreements with the European Space Agency
(ESA), related to the satellites, the launches, the ground segment and the
operations. Without this reinforcement, the ESA will not receive the agreed
amount and contractors will be paid with a later deadline. That would result in
delays in programme implementation and postponement of the start of the
operational phase at the end of 2014, as well as to cost overruns.

European
Globalisation Adjustment Fund (EGF): EUR 13,0 million

In the voted budget 2013,
an amount of EUR 50 million in payment appropriations was entered on the
EGF line. However, EGF applications in excess of this amount have already been
submitted to the Commission. To cover the payment needs related to these
applications, a reinforcement of payment appropriations amounting to EUR 13,0 million
is requested.

Lifelong Learning and Erasmus Mundus: EUR 126,0 million

The
voted budget 2013 combined an increase in commitment appropriations for Lifelong
Learning and Erasmus Mundus with a reduction in payment
appropriations, as compared to the draft budget. Taking into account the high
level of payment implementation in recent years, it is proposed to align the
level of payments for these programmes with the execution in 2012, taking into
account the reinforced level of commitments in 2013. Therefore, a reinforcement
of payment appropriations amounting to EUR 120,0 million is requested
for Lifelong Learning and EUR 6,0 million for Erasmus
Mundus. Without these additional appropriations, the Commission would not
be in a position to make the operational appropriations available to the National
Agencies. As a consequence, they would face serious difficulties to implement
the decentralised actions.

Other programmes and
actions: EUR 42,9 million

The review of payment
needs has confirmed the payment requests contained in the draft budget 2013 for
a number of other programmes under heading 1a, notably in the field of
financial services, the internal market, customs and taxation and statistics.
Past implementation levels for these programmes have been high, and certain
programmes are expected to run out of payment appropriations at an early stage
of the year, which may in turn lead to interest on late payments.

4.2.        Heading 1b 3⁄4 Cohesion for Growth and Employment

The overall request for
reinforcement of payment appropriations in heading 1b amounts to EUR 9 billion,
broken down as follows:

Budget Line || Heading || Payments (EUR million)

04 02 01 || Completion of the European Social Fund (ESF) — Objective 1 (2000 to 2006) || 860,000

04 02 17 || European Social Fund (ESF) — Convergence || 1 620,000

04 02 19 || European Social Fund (ESF) — Regional competitiveness and employment || 773,000

13 03 01 || Completion of European Regional Development Fund (ERDF) — Objective 1 (2000 to 2006) || 515,000

13 03 04 || Completion of European Regional Development Fund (ERDF) — Objective 2 (2000 to 2006) || 86,000

13 03 06 || Completion of Urban (2000 to 2006) || 0,150

13 03 16 || European Regional Development Fund (ERDF) — Convergence || 1 797,000

13 03 18 || European Regional Development Fund (ERDF) — Regional competitiveness and employment || 833,000

13 03 19 || European Regional Development Fund (ERDF) — European territorial cooperation || 182,000

13 04 01 || Cohesion Fund — Completion of previous projects (prior to 2007) || 250,000

13 04 02 || Cohesion Fund || 2 085,000

Total || 9 001,150

Closure of 2000-2006
programmes: EUR 1 711 million

Regarding the completion
of the programmes of the previous period 2000-2006, the Commission is ready to
proceed with payments of the final balance for many programmes. However, the
corresponding appropriations on the various budget lines concerned are either
fully exhausted or will be exhausted soon. The Commission expects to close most
of the Structural Funds programmes this year. Therefore it is necessary to
reinforce payment appropriations in the 2013 budget by
EUR 1,7 billion, in order not to delay unduly the 2000-2006 closure
process nor to burden the budget 2014 with requests for these closures. This is,
however, with the exception of the Cohesion Fund, to which different rules applied
in the period 2000-2006.

Already in its draft amending
budget No 6/2012, the Commission identified a missing amount of
around EUR 1,4 billion for programmes in heading 1b that were ready
to be closed in 2012, of which EUR 0,3 billion were finally covered
in the end-of-the-year transfer. The remaining amount from 2012 of around EUR 1,1 billion
had to be charged on the 2013 budget.

As a consequence, at the
beginning of March 2013, the individual budget lines for closure of
2000-2006 programmes by structural fund and objective had already reached
(nearly) full implementation of the payment appropriations in the 2013 budget:
the implementation rates stood at 100 % for ESF 3⁄4 Objective 1 and for ERDF 3⁄4 Objective 1, 97 % for Urban and 94 % for ERDF 3⁄4 Objective 2.

However, further
programmes under the Structural Funds are now ready for closure requiring an
additional amount of EUR 1 461 million, to cover payment needs
related to uncontested amounts resulting from a detailed analysis of closure
documents.

As regards the completion
of previous projects under the Cohesion Fund, at the beginning of March 2013
37 % of the payment appropriations on this line in the 2013 budget had
been implemented. The additional amount of EUR 250 million is
required to cover estimated payment needs related to project closures until the
end of the year.

2007-2013 programmes:
EUR 7 290 million

As far as the 2007-2013 programmes
are concerned, EUR 16,2 billion of payment claims received before the
end of last year have to be charged on the appropriations available in the 2013
budget. Accordingly, out of the EUR 45,2 billion in the 2013 budget
for the 2007-2013 programmes, only EUR 28,9 billion remain available
for the payment claims to be submitted in 2013.

In 2012 the Commission
received around EUR 50,6 billion in payment claims. It is expected
that payment claims submitted in 2013 will exceed this amount of EUR 50,6 billion,
since the end of the ‘N+3’ rule
will force Member States that previously benefitted from this rule to submit at
the end of 2013 payment claims covering up to two annual tranches. This would
also constitute a continuation of the trend observed over the last three years
during which payment claims have substantially increased year after year.

Member States’ forecasts
for 2013, submitted in September 2012 and reduced by 20 % to take account
of past experience of forecast accuracy, would suggest that payment claims amounting
to around EUR 55 billion are likely to be received by the end of the
year. As explained above, this amount would be in line with the Commission’s
own assessment of needs.

However, the monthly
profile of submission of payment claims could be significantly different this
year, since the end of the ‘N+3’ rule is likely to lead
to an increased share of payment claims sent only in the very last days of the
year, as Member States will seek to minimise decommitment risks. Such late
claims cannot be processed by the Commission before the end of the year.

Overall, without an
adequate reinforcement, the gap between the payment appropriations available
for 2013 and the expected payment claims would lead to a considerable unpaid
backlog at the end of 2013. This would put an unsustainable burden on the 2014
budget and would delay the reimbursement of the payment claims submitted by the
Member States by many months as compared to the legal deadlines.

Based on the assumptions
described above, the Commission requests an amount of EUR 7,3 billion
in additional payment appropriations. The requested reinforcement includes the
amount of around EUR 1,4 billion identified by the Commission when
preparing the draft amending budget No 6/2012 for which interruptions
or suspensions have already been lifted or will soon be lifted.

The unpaid claims carried
over from 2012 account for a substantial share of the appropriations in the
2013 budget, varying from 24 % for the Cohesion Fund, 29 % for
ERDF 3⁄4 Convergence, 36 % for ESF 3⁄4 Convergence, 60 % for ESF 3⁄4 Regional
competitiveness and 62 % for ERDF 3⁄4 Territiorial
Cooperation to 90 % for ERDF 3⁄4 Regional
competitiveness. The requested reinforcements,
amounting to EUR 7 290 million in total, are needed to cover
estimated payment needs without shifting an unsustainable level of unpaid
claims into 2014. Without these reinforcements, the lines are expected to reach
full implementation during the course of the first semester or in early Autumn
2013 at the latest.

4.3.        Heading
2 3⁄4 Preservation
and Management of Natural Resources

The overall request for
reinforcement of payment appropriations in heading 2 amounts to EUR 608,5 million,
broken down as follows:

Budget Line || Heading || Payments (EUR million)

05 04 02 01 || Completion of the European Agricultural Guidance and Guarantee Fund, Guidance Section — Objective 1 regions (2000 to 2006) || 95,916

05 04 02 02 || Completion of the special programme for peace and reconciliation in Northern Ireland and the border counties of Ireland (2000 to 2006) || 2,189

05 04 05 01 || Rural development programmes || 460,000

07 03 07 || LIFE+ (Financial Instrument for the Environment — 2007 to 2013) || 10,000

11 06 12 || European Fisheries Fund (EFF) — Convergence objective || 33,995

11 06 13 || European Fisheries Fund (EFF) — Outside convergence objective || 6,390

Total || 608,490

05 04 02 01 3⁄4 Completion
of the European Agricultural Guidance and Guarantee Fund, Guidance Section 3⁄4 Objective
1 regions (2000 to 2006) (EUR 95,9 million)

In its draft amending budget No 6/2012,
the Commission identified an amount of around EUR 110 million that
was needed to proceed with closure of old programmes, notably in Portugal. As
this reinforcement was not granted in 2012 and as no appropriations have been
budgeted on this budget line in 2013, the Commission proposes a reinforcement
of EUR 95,9 million. The difference with the amount identified last
year will be covered by assigned revenues.

05 04 02 02 3⁄4 Completion
of the special programme for peace and reconciliation in Northern Ireland and
the border counties of Ireland – Peace (2000 to 2006) (EUR 2,2 million)

The reinforcement is is
needed to proceed with the closure of this programme.

05 04 05 01 — Rural
development programmes (EUR 460 million)

The
estimate of payment needs on this line has been revised upwards following the
Commission’s latest analysis of implementation
concerning the Rural Development Programmes.

Payment claims relating
to the last quarter of 2012 (Q4) are charged on the 2013 budget and amount to
EUR 4,7 billion. This is around 37 % of the appropriations available
in the 2013 budget and leaves only EUR 7,8 billion for the remainder
of 2013, which is clearly insufficient to meet year-end needs. The first
quarterly declaration of expenditure and Member States’ forecasts until the end
of the year, as submitted in January 2013, suggest a total level of payment
needs of EUR 14,7 billion.

However, as for the
Cohesion Policy, the Commission has corrected downwards Member States’
forecasts based on past experience. For Q1 and Q2 a reduction of approximately
20 % has been applied, whereas for Q3 the actual declared amount in
previous years has been used to estimate claims, as this figure is rather
stable.

A reinforcement of
Rural Development programmes of EUR 460 million is proposed, taking
into account the above mentioned correction of Member States’ forecasts,
payments of EUR 101 million relating to unpaid claims for 2012 and estimated
assigned revenues of around EUR 200 million. Without this
reinforcement, part of the declarations by Member States for the third quarter of
2013 would remain unpaid, payment deadlines would not be respected and payments
to be made in 2014 would increase.

07 03 07 3⁄4 LIFE+ (Financial
Instrument for the Environment – 2007 to 2013) (EUR 10,0 million)

Implementation
of payment appropriations for LIFE+ has significantly increased in 2012, which
demonstrates that the programme is now at cruising speed. The review of payment
needs for 2013 has confirmed the need for additional payment appropriations
compared to the 2012 budget, in order to process second pre-financing payments
and settle final payments as more action grants are reaching the end of their
implementation period (usually between 3 and 7 years).

11 06 12 — European
Fisheries Fund 3⁄4 Convergence objective (EUR 34,0 million)

The payment needs have
been re-assessed following the Commission’s latest
analysis of implementation concerning the European Fisheries Fund. This
assessment confirmed the needs identified in the draft budget 2013. As for the
Cohesion Policy, this need is reinforced by a high level of unpaid payment claims
at the end of 2012 (representing 100 % of the appropriations in the 2013
budget) that will have to be covered by the 2013 budget.Without this
reinforcement part of the 2013 payment claims would remain unpaid, payment
deadlines would not be respected and the backlog of payments to be made in 2014
would increase.

11 06 13 — European
Fisheries Fund 3⁄4 outside Convergence objective (EUR 6,4 million)

The payment needs have
been re-assessed following the Commission’s latest
analysis of implementation concerning the European Fisheries Fund. This
assessment confirmed the needs identified in the draft budget 2013. As for the
Cohesion Policy, this need is reinforced by a high level of unpaid payment claims
at the end of 2012 (representing 60 % of the appropriations in the 2013
budget) that will have to be covered by the 2013 budget.Without this
reinforcement part of the 2013 payment claims would remain unpaid, payment
deadlines would not be respected and the backlog of payments to be made in 2014
would increase.

4.4.        Heading
3a 3⁄4 Freedom,
Security and Justice

The
overall request for reinforcement of payment appropriations in heading 3a
amounts to EUR 128,35 million, broken down as follows:

Budget Line || Heading || Payments (EUR million)

18 02 04 || Schengen information system (SIS II) || 3,000

18 02 06 || External Borders Fund || 21,000

18 02 09 || European Return Fund || 27,000

18 03 03 || European Refugee Fund (ERF) || 30,000

18 03 05 || European Migration Network || 1,000

18 03 09 || European Fund for the Integration of third-country nationals || 28,500

18 03 14 02 || European Asylum Support Office — Contribution to Title 3 || 1,500

18 03 17 || Preparatory action — Enable the resettlement of refugees during emergency situations || 0,650

18 05 08 || Prevention, preparedness and consequence management of terrorism || 2,000

18 05 09 || Prevention of and fight against crime || 12,500

18 08 01 || Prince — Area of freedom, security and justice || 1,200

Total || 128,350

Solidarity and
management of migration flows: EUR 107,5 million

The reinforcement of
payment appropriations requested for the four Funds under Solidarity and
Management of migration flows (External Borders Fund, European Return
Fund, European Fund for the Integration of Third Country Nationals
and European Refugee Fund), as well as the European Migration Network,
covers the updated needs for intermediate and final payments to be made on
grants and contracts from 2011 and 2012, as well as pre-financing payments on
2012 and 2013 calls. This is against the background of postponement of certain
pre-financings for the year 2012, which further increases the need for
reinforcement in 2013. The amounts requested are calculated assuming that the ‘Schengen
reserve’ currently in the 2013 budget will be lifted and hence, that the
amounts in reserve will be made available.

Security and
safeguarding liberties: EUR 14,5 million

The reinforcement of
payment appropriations requested for Prevention, preparedness and
consequence management of terrorism and Prevention of and fight against
crime covers the updated needs for intermediate and final payments to be
made on grants and contracts from 2011 and 2012, as well as pre-financing
payments on 2012 and 2013 calls. The amounts requested are calculated assuming
that the ‘Schengen reserve’ will be lifted and hence, that the amounts in
reserve will be made available.

Other programmes and
actions: EUR 6,35 million

The review of payment
needs for 2013, also in light of actual implementation in 2012, has confirmed
the payment requests contained in the draft budget for the Schengen
Information System (SIS II) and Prince – Area of freedom, security and
justice. As regards SIS-II, the amount requested is calculated assuming
that the reserve linked to the progress of the programme and the Delegation of
tasks to the eu.LISA agency will be lifted and hence, that the amount in
reserve will be made available.

4.5.        Heading
3b 3⁄4 Citizenship

The
overall request for reinforcement of payment appropriations in heading 3b
amounts to EUR 15,15 million, broken down as follows:

Budget Line || Heading || Payments (EUR million)

09 02 06 || Preparatory action — Erasmus for Journalists || 0,150

15 04 44 || Culture Programme (2007 to 2013)     || 3,500

15 04 66 01 || MEDIA 2007 — Support programme for the European audiovisual sector || 2,500

17 03 06 || Union action in the field of health || 9,000

Total || 15,150

The reinforcement of
payment appropriations requested for heading 3b relates to the Culture, Media
and Health programmes. For the Culture and Media
programmes, this is mainly due to the lack of payment appropriations in 2012,
which has pushed pre-financing payments into 2013. Moreover, for the Media
programme, final reports are arriving more quickly than initially foreseen,
which leads to swifter implementation of projects. Finally, the reinforcement
requested for the Health programme is consistent with the high level of
implementation in 2012, which proves the absorption capacity of the programme.

4.6.        Heading
4 3⁄4 EU as a Global Player

The overall request for
reinforcement of payment appropriations in heading 4 amounts to EUR 489,5 million,
broken down as follows:

Budget Line || Heading || Payments (EUR million)

04 06 01 || Instrument for Pre-Accession Assistance (IPA) — Human resources development || 35,500

13 05 02 || Instrument for Pre-Accession Assistance (IPA) — Regional development component || 127,000

13 05 03 02 || Cross-border cooperation (CBC) and participation of candidate and potential candidate countries in Structural Funds’ transnational and interregional cooperation programmes — Contribution from Heading 4 || 7,000

19 04 01 || European Instrument for Democracy and Human Rights (EIDHR) || 20,000

19 06 01 01 || Crisis response and preparedness (Instrument for Stability) || 42,000

19 06 02 01 || Actions in the area of risk mitigation and preparedness relating to chemical, nuclear and biological materials or agents (Instrument for Stability) || 6,000

19 06 03 || Trans-regional actions in the areas of organised crime, trafficking, protection of critical infrastructure, threats to public health and the fight against terrorism (Instrument for Stability) || 5,000

19 08 01 01 || European Neighbourhood and Partnership financial cooperation with Mediterranean countries || 10,000

19 08 01 02 || European Neighbourhood and Partnership financial assistance to Palestine, the peace process and UNRWA || 70,000

19 08 01 03 || European Neighbourhood and Partnership financial cooperation with eastern Europe || 35,000

19 09 01 || Cooperation with developing countries in Latin America || 20,000

19 10 01 01 || Cooperation with developing countries in Asia || 10,000

20 02 03 || Aid for trade — Multilateral initiatives || 2,000

21 03 01 || Non-State actors in development || 10,000

21 03 02 || Local authorities in development || 7,000

21 05 02 || Global Fund to Fight Aids, Tuberculosis and Malaria (GFATM) || 5,000

21 06 02 || Relations with South Africa || 10,000

22 02 07 01 || Regional and horizontal programmes || 22,000

23 02 01 || Humanitarian aid || 43,000

23 02 02 || Food aid || 3,000

Total || 489,500

Instrument for Pre-Accession
assistance (IPA): EUR 191,5 million

The reinforcement of
payment appropriations requested for IPA programmes (Human resources
development, Regional development, Cross-border cooperation (CBC)
and Regional and horizontal programmes) is mostly due to the level of
unpaid payment claims received in 2012 and the updated forecasts for payment
claims to be received in 2013, also in view of avoiding the risk of ‘N+3’
decommitments, against the background of large reductions of payment
appropriations in the voted budget as compared to the draft budget. The amounts
requested in this draft amending budget are calculated assuming that the additional
payment appropriations requested for IPA programmes (‘Rural development’
and ‘Transition and institution building assistance’) in DAB No 1/2013
(Croatia) will be approved.

European Neighbourhood and Partnership Instrument (ENPI): EUR 115 million

The
reinforcement of payment appropriations requested for ENPI (Mediterranean
countries, Palestine and Eastern Europe) is mostly due to the
large reductions of payment appropriations in the voted budget for these budget
lines as compared to the draft budget. At the same time, additional commitment
appropriations were allocated in the 2011 and 2012 budgets in the context of
the reinforcement of these lines following the review of the European
Neighbourhood policy and the Amending Letter No 1/2012. In particular
the ‘Support for Partnership, Reform and Inclusive Growth’ (SPRING)
programme and the ‘Eastern Partnership Integration and Cooperation’
(EaPIC) incentive programmes were created in these years. Needs for payment
appropriations were updated in January 2013, in the framework of the Headquarters’
and Delegations’ regular year-end reporting. The current estimate of the needs
for the year is based on the most conservative of the delegations’ requests,
and the consumption of appropriations on the Neighbourhood lines has been at
100% for the last two years. If further reinforcement is not made, some types
of payment will incur interest charges. Other types of payment, such as large
budget support payments, if delayed, would not incur charges but will inflict
damage on the fragile economies of partner countries and on our political
relations with those countries.

Development
Cooperation Instrument (DCI): EUR 62,0 million

The reinforcement of
payment appropriations requested for DCI (mostly related to Latin America,
Asia and South Africa, as well as Non-State Actors and Local
authorities in Development) is mostly due to the lack of payment
appropriations in 2012, which resulted in postponement of payments. As a
consequence, certain programmes are expected to run out of payment
appropriations in the third quarter of 2013. Finally, the reinforcement of
payment appropriations requested for the Global Health Fund is mostly
due to the fact that payments for the fees for this Fund should match the level
of commitments.

Instrument for
Stability (IfS): EUR 53,0 million

The reinforcement of
payment appropriations requested for the Instrument for Stability is
mostly due to the lack of payment appropriations in 2012, which resulted in
postponement of payments amounting to EUR 10 million, in combination
with a large reduction of payment appropriations in the voted budget 2013. The
request for additional payment appropriations is meant to cover existing
contractual obligations with external partners, as well as a high level of
mandatory advance payments.

European Instrument
for Democracy and Human Rights (EIDHR): EUR 20,0 million

The reinforcement of
payment appropriations requested for Democracy and Human Rights is
mostly due to the lack of payment appropriations in 2012, which resulted in
postponement of payments. As a consequence, the implementation rate of payments
at the beginning of March 2013 already stood at 40 %, and the
programme risks to run out of payment appropriations in the third quarter of
2013.

Humanitarian aid:
EUR 46,0 million

The reinforcement of
payment appropriations requested for Humanitarian aid and Food aid
is mostly due to the fact that the level of payments in the 2013 budget is EUR 80 million
below the level of commitments, whereas the implementation of payments
historically is close to 100 % of commitment appropriations, as well as to
the increase in the level of outstanding commitments at the end of 2012. For
this reason, 34 % of the payment appropriations in the voted budget 2013
had already been implemented at the beginning of March 2013. Furthermore,
with the deteriorating situation in major crises such as Mali, Sahel, Syria and
Horn of Africa, the emergency aid reserve may have to be used again in 2013.

Other programmes and
actions: EUR 2,0 million

The reinforcement of
payment appropriations requested for Aid for Trade is mostly due to the
fact that additional payments are necessary to meet existing and future
commitments in the 2013 budget, against the background of a large reduction in
payments in the voted budget as compared to the draft budget.

5.           Conclusion

The review of payment
needs in the 2013 budget has revealed a major shortage of payment
appropriations, amounting to EUR 11,2 billion. After this DAB No 2/2013,
the amount of EUR 14,8 million which remains available under the
payment ceiling of the multi-annual financial framework for 2013, is expected to
meet the payment needs related to a series of connected applications received
for the EU Solidarity Fund (EUSF). Subject to confirmation of eligibility, the
Commission will shortly present a draft amending budget linked to the proposal
to mobilise the EUSF.

6.           Summary
table by heading of the Financial Framework

Financial framework Heading/subheading || Revised 2013 Financial framework || Budget 2013 (incl. DAB 1/2013) || DAB 2/2013 || Budget 2013 (incl. DAB 1-2/2013)

CA || PA || CA || PA || CA || PA || CA || PA

1. SUSTAINABLE GROWTH || || || || || || || ||

1a. Competitiveness for growth and employment || 15 670 000 000 || || 16 168 150 291 || 11 904 027 361 || || 982 600 734 || 16 168 150 291 || 12 886 628 095

Margin || || || 1 849 709 || || || || 1 849 709 ||

1b. Cohesion for growth and employment || 54 974 000 000 || || 54 958 049 037 || 47 348 394 736 || || 9 001 150 000 || 54 958 049 037 || 56 349 544 736

Margin || || || 15 950 963 || || || || 15 950 963 ||

Total || 70 644 000 000 || || 71 126 199 328 || 59 252 422 097 || || 9 983 750 734 || 71 126 199 328 || 69 236 172 831

Margin[4] || || || 17 800 672 || || || || 17 800 672 ||

2. PRESERVATION AND MANAGEMENT OF NATURAL RESOURCES || || || || || || || ||

Of which market related expenditure and direct payments || 48 583 000 000 || || 43 956 548 610 || 43 934 188 711 || || || 43 956 548 610 || 43 934 188 711

Total || 61 310 000 000 || || 60 159 241 416 || 57 487 002 491 || || 608 490 470 || 60 159 241 416 || 58 095 492 961

Margin || || || 1 150 758 584 || || || || 1 150 758 584 ||

3. CITIZENSHIP, FREEDOM, SECURITY AND JUSTICE || || || || || || || ||

3a. Freedom, Security and Justice || 1 703 000 000 || || 1 440 827 200 || 917 683 652 || || 128 350 000 || 1 440 827 200 || 1 046 033 652

Margin || || || 262 172 800 || || || || 262 172 800 ||

3b. Citizenship || 746 000 000 || || 738 364 000 || 639 099 615 || || 15 150 000 || 738 364 000 || 654 249 615

Margin || || || 7 636 000 || || || || 7 636 000 ||

Total || 2 449 000 000 || || 2 179 191 200 || 1 556 783 267 || || 143 500 000 || 2 179 191 200 || 1 700 283 267

Margin || || || 269 808 800 || || || || 269 808 800 ||

4. EU AS A GLOBAL PLAYER || 9 595 000 000 || || 9 583 118 711 || 6 409 414 260 || || 489 500 000 || 9 583 118 711 || 6 898 914 260

Margin[5] || || || 275 996 289 || || || || 275 996 289 ||

5. ADMINISTRATION || 9 095 000 000 || || 8 430 690 740 || 8 430 365 740 || || || 8 430 690 740 || 8 430 365 740

Margin[6] || || || 750 309 260 || || || || 750 309 260 ||

6.COMPENSATION || 75 000 000 || || 75 000 000 || 75 000 000 || || || 75 000 000 || 75 000 000

Margin || || || || || || || ||

TOTAL || 153 168 000 000 || 144 285 000 000 || 151 553 441 395 || 133 210 987 855 || || 11 225 241 204 || 151 553 441 395 || 144 436 229 059

Margin [7][8] || || || 2 464 673 605 || 11 240 012 145 || || || 2 464 673 605 || 14 770 941

[1]               OJ L 298, 26.10.2012, p. 1.

[2]               OJ L 66, 8.3.2013, p. 1.

[3]               COM(2013) 156.

[4]               The European Globalisation adjustment
Fund (EGF) is not included in the calculation of the margin under Heading 1a
(EUR 500 million).

[5]               The 2013 margin for heading 4 does not
take into account the appropriations related to the Emergency Aid Reserve (EUR
264,1 million).

[6]               For calculating the margin under the
ceiling for heading 5, account is taken of the footnote (1) of the financial
framework 2007-2013 for an amount of EUR 86 million for the staff
contributions to the pension scheme.

[7]               The global margin for commitments does
not take into account the appropriations related to the EGF
(EUR 500 million), the EAR (EUR 264,1 million), and the
staff contributions to the pensions scheme (EUR 86 million).

[8]               The global margin for payments does not
take into account the appropriations related to the EAR (EUR 80 million), and
to the staff contributions to the pensions scheme (EUR 86 million).