# 3_EN_ACT_part1_v2.docx

european flagEUROPEAN COMMISSION

Brussels, 15.10.2019

COM(2019) 487 final

AMENDING LETTER No 1 TO THE DRAFT GENERAL BUDGET 2020

Updated estimated needs for agricultural expenditure







  Adjustments related to the legislative proposals included in the Brexit preparedness package of 4 September 2019


  Reinforcements of administrative budgets and other updates based on recent developments






  Adjustment to the structure of the budget and a technical correction

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,

–Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union (...)
  1
  , and in particular Article 42 thereof,

–the draft general budget of the European Union for the financial year 2020, as adopted by the Commission on 5 July 2019
  2
  ,

The European Commission hereby presents to the European Parliament and to the Council Amending Letter No 1 to the draft general budget of the European Union for the financial year 2020, for the reasons set out in the explanatory memorandum.

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 (

  https://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

2.
     European Agricultural Guarantee Fund

2.1 Overview

2.2 Detailed comments

2.3 Detailed figures by budget line

3.
     Adjustments related to the legislative proposals included in the Brexit preparedness package of 4 September 2019.

3.1 European Union Solidarity Fund

3.2 Creation of a new budget line in the General Statement of Revenue

4.
     Other adjustments

4.1 Section I – European Parliament

4.3 Section X – European External Action Service

4.3 Update of the Sustainable Fisheries Partnership Agreements

5.
     Technical adjustment and correction

5.1 Innovation Fund

5.2 European Union Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice (eu-LISA)

6.
     Summary Table by MFF Heading

1.Introduction

Amending Letter No 1 to the draft budget for the year 2020 (AL 1/2020) covers the following:

3⁄4The updating of the estimated needs, assigned revenue and appropriations for agricultural expenditure. In addition to changing market factors, AL 1/2020 also incorporates the impact of decisions in the agricultural sector since the 2020 Draft Budget (DB 2020) was adopted in July 2019, as well as other proposals expected to have a significant effect during the budget year.

3⁄4Adjustments related to the legislative proposals included in the Brexit preparedness package of 4 September 2019.

3⁄4Other adjustments concerning the administrative budgets of the European Parliament and the European External Action Service, and sustainable fisheries partnership agreements.

3⁄4An adjustment to the structure of the budget to accommodate the Innovation Fund.

3⁄4A technical correction (eu-LISA).

Overall, the net impact of AL 1/2020 on expenditure in the draft budget 2020 is an increase of EUR 16,4 million in commitment appropriations and a decrease of EUR 5,4 million in payment appropriations.

2.European Agricultural Guarantee Fund

2.1
     Overview

AL 1/2020 updates estimates for agricultural expenditure based on the most up-to-date economic data and legislative framework. By late September 2019, the Commission has at its disposal a first indication of the level of production for 2019 and the outlook for the agricultural markets as well as actual figures for most of the 2019 budget execution as regards EAGF shared management, which are the basis for the updated estimates of the budgetary needs for 2020.

Apart from taking into account market factors, this AL 1/2020 also incorporates the impact of legislative decisions in the agricultural sector since the DB 2020 was drawn up in June 2019, as well as for some that are still under preparation, soon to be adopted.

Overall, 2020 EAGF needs (after taking into account EAGF provisions related to 'financial discipline') are now estimated at EUR 44 481,1 million
  3
  , which is an increase by EUR 304,3 million compared to the DB 2020. This increase is mostly due to additional needs for chapter 05 07 Audit of agricultural expenditure financed by the European Agricultural Guarantee Fund (EAGF) (+EUR 174,3 million) and for chapter 05 03 Direct payments aimed at contributing to farm incomes, limiting farm incomes variability and meeting environment and climate objectives (+EUR 94 million). There are also small modifications for chapter 05 02 Improving the competitiveness of the agricultural sector through interventions in agricultural markets for +EUR 36,0 million.

The amount of assigned revenue estimated to be available in 2020 increases from EUR 645,0 million in DB 2020 to EUR 999,0 million (+EUR 354,0 million), more than compensating the additional needs. The update of estimates concerns the amounts originating from clearance of accounts decisions (+EUR 181,0 million) and irregularities (-EUR 7,0 million). Furthermore, AL 1/2020 incorporates an expected carry-over of assigned revenue from 2019 to 2020 for an amount of EUR 280,0 million (expected EAGF 'surplus')
  4
  , of which EUR 100,0 million were already anticipated in the DB 2020. The estimated surplus does not include unused appropriations (EUR 468,7 million) of the 2019 agricultural crisis reserve, which will not be called on. These unused appropriations will be carried over for reimbursement to farmers subject to the financial discipline in 2020.

As a result of these updates, the Commission proposes to reduce the expenditure estimates for agriculture by –EUR 49,7 million compared to DB 2020. Commitment appropriations of EUR 43 482,1 million, which include EUR 478,0 million for the Reserve for crises in the agricultural sector, are required to cover EAGF needs for 2020. This overall amount remains below the EAGF net sub-ceiling of EUR 43 887,1 million. This means that the financial discipline mechanism will only be applied to establish the agricultural crisis reserve for budget year 2020
  5
  .

2.2
     Detailed comments

05 02 — Improving competitiveness of the agricultural sector through interventions in agricultural markets (appropriations +EUR 36,0 million)

| (in million EUR, rounded figures at current prices) |
| --- |
| Interventions in agricultural markets | Draft Budget 2020 | Amending Letter
  No 1/2020 | Draft Budget 2020
  (incl. AL 1/2020) |
| Needs | 2 644,1 | +36,0 | 2 680,1 |
| -Estimated assigned revenue available in 2020 | 150,0 | 0,0 | 150,0 |
| Appropriations requested | 2 494,1 | +36,0 | 2 530,1 |

(in million EUR, rounded figures at current prices)

Interventions in agricultural markets

Draft Budget 2020

Amending Letter
  No 1/2020

Draft Budget 2020
  (incl. AL 1/2020)

Needs

2 644,1

+36,0

2 680,1

-Estimated assigned revenue available in 2020

150,0

0,0

150,0

Appropriations requested

2 494,1

+36,0

2 530,1

Overall, the needs for intervention measures on agricultural markets slightly increase by EUR 36,0 million compared to the DB 2020. As the amount of assigned revenue remains unchanged compared to DB 2020, the appropriations requested in AL 1/2020 increase by the same amount to EUR 2 530,1 million.

The most significant modification proposed in AL 1/2020 for market measures concerns the poultry sector (budget item 05 02 15 99) with an increase of EUR 32,0 million, relating to specific exceptional measures to farmers following outbreaks of avian influenza. Furthermore, an increase of EUR 4,0 million is proposed for specific aid for bee-keeping (budget item 05 02 15 06).

05 03 — Direct payments aimed at contributing to farm incomes, limiting farm income variability and meeting environment and climate objectives (appropriations - EUR 260,0 million)

| (in million EUR, rounded figures at current prices) |
| --- |
| Direct payments | Draft Budget 2020 | Amending Letter
  No 1/2020 | Draft Budget 2020
  (incl. AL 1/2020) |
| After financial discipline (including credits for the ‘Reserve for crises in the agricultural sector’) |
| Needs | 41 448,0 | +94,0 | 41 542,0 |
| - Estimated assigned revenue available in 2020 | 495,0 | +354,0 | 849,0 |
| Appropriations requested | 40 953,0 | -260,0 | 40 693,0 |

(in million EUR, rounded figures at current prices)

Direct payments

Draft Budget 2020

Amending Letter
  No 1/2020

Draft Budget 2020
  (incl. AL 1/2020)

After financial discipline (including credits for the ‘Reserve for crises in the agricultural sector’)

Needs

41 448,0

+94,0

41 542,0

- Estimated assigned revenue available in 2020

495,0

+354,0

849,0

Appropriations requested

40 953,0

-260,0

40 693,0

Compared to DB 2020, appropriations requested for chapter 05 03 are revised downwards by EUR 260,0 million. This change is mostly due to the higher amount of revenue assigned (+EUR 354,0 million) to item 05 03 01 10 Basic payment scheme (BPS). The increase for estimated needs (+EUR 94,0 million) compared to the DB 2020 reflects very high execution in the 2019 budget year that is expected to continue in 2020. There are some variations between budget items for direct payments, reflecting updated needs assessment (see table below).

Other agricultural expenditure financed by the European Agricultural Guarantee Fund (EAGF) (appropriations +EUR 174,3 million)

Appropriations for budget article 05 07 01 07 Financial corrections in favour of Member States following conformity clearance decisions need to be increased by EUR 176,6 million as a consequence of two Court of Justice rulings (Cases T-459/16 and T-237/17) in favour of Member States on former clearance decisions. Furthermore, there is a small update for budget item 05 07 01 06 Financial corrections in favour of Member States following accounting clearance decisions for an amount of -EUR 2,3 million (see table below).

2.3
     Detailed figures by budget line

| in EUR |
| --- |
| Budget line | Name | Commitment appropriations | Payment appropriations |
| Section III – European Commission |
| 05 02 15 06 | Specific aid for bee-keeping | +4 000 000 | +4 000 000 |
| 05 02 15 99 | Other measures for pigmeat, poultry, eggs, bee-keeping, other animal products | +32 000 000 | +32 000 000 |
| Sub-total
     05 02 | +36 000 000 | +36 000 000 |
| 05 03 01 02 | Single area payment scheme (SAPS) | +21 000 000 | +21 000 000 |
| 05 03 01 07 | Redistributive payment | +7 000 000 | +7 000 000 |
| 05 03 01 10 | Basic payment scheme (BPS) | -325 000 000 | -325 000 000 |
| 05 03 01 11 | Payment for agricultural practices beneficial for the climate and the environment | +54 000 000 | +54 000 000 |
| 05 03 01 13 | Payment for young farmers | +120 000 000 | +120 000 000 |
| 05 03 01 99 | Other (decoupled direct payments) | -7 000 000 | -7 000 000 |
| 05 03 02 50 | POSEI – European Union support programmes | +1 000 000 | +1 000 000 |
| 05 03 02 60 | Voluntary coupled support scheme | +7 000 000 | +7 000 000 |
| 05 03 02 61 | Small farmers scheme | -137 000 000 | -137 000 000 |
| 05 03 02 99 | Other (direct payments) | -1 000 000 | -1 000 000 |
| Sub-total
     05 03 | -260 000 000 | -260 000 000 |
| 05 07 01 06 | Expenditure for financial corrections in favour of Member States following decisions on accounting clearance of previous years’ accounts with regard to shared management declared under the EAGGF-Guarantee Section (previous measures) and under the EAGF | -2 300 000 | -2 300 000 |
| 05 07 01 07 | Expenditure for financial corrections in favour of Member States following decisions on conformity clearance of previous years’ accounts with regard to shared management declared under the EAGGF-Guarantee Section (previous measures) and under the EAGF | +176 600 000 | +176 600 000 |
| Sub-total
     05 07 | +174 300 000 | +174 300 000 |
| Total EAGF | -49 700 000 | -49 700 000 |

in EUR

Budget line

Name

Commitment appropriations

Payment appropriations

Section III – European Commission

05 02 15 06

Specific aid for bee-keeping

+4 000 000

+4 000 000

05 02 15 99

Other measures for pigmeat, poultry, eggs, bee-keeping, other animal products

+32 000 000

+32 000 000

Sub-total
     05 02

+36 000 000

+36 000 000

05 03 01 02

Single area payment scheme (SAPS)

+21 000 000

+21 000 000

05 03 01 07

Redistributive payment

+7 000 000

+7 000 000

05 03 01 10

Basic payment scheme (BPS)

-325 000 000

-325 000 000

05 03 01 11

Payment for agricultural practices beneficial for the climate and the environment

+54 000 000

+54 000 000

05 03 01 13

Payment for young farmers

+120 000 000

+120 000 000

05 03 01 99

Other (decoupled direct payments)

-7 000 000

-7 000 000

05 03 02 50

POSEI – European Union support programmes

+1 000 000

+1 000 000

05 03 02 60

Voluntary coupled support scheme

+7 000 000

+7 000 000

05 03 02 61

Small farmers scheme

-137 000 000

-137 000 000

05 03 02 99

Other (direct payments)

-1 000 000

-1 000 000

Sub-total
     05 03

-260 000 000

-260 000 000

05 07 01 06

Expenditure for financial corrections in favour of Member States following decisions on accounting clearance of previous years’ accounts with regard to shared management declared under the EAGGF-Guarantee Section (previous measures) and under the EAGF

-2 300 000

-2 300 000

05 07 01 07

Expenditure for financial corrections in favour of Member States following decisions on conformity clearance of previous years’ accounts with regard to shared management declared under the EAGGF-Guarantee Section (previous measures) and under the EAGF

+176 600 000

+176 600 000

Sub-total
     05 07

+174 300 000

+174 300 000

Total EAGF

-49 700 000

-49 700 000

The relevant budget remarks are adjusted in annex.

3.Adjustments related to the legislative proposals included in the Brexit preparedness package of 4 September 2019.

3.1
     European Union Solidarity Fund

In accordance with Article 4a, paragraph 4 of Council Regulation (EC) No 2012/2002, the DB 2020 includes an amount of EUR 50 million on budget article 13 06 01. This is to ensure the timely availability of budgetary resources in cases where, when submitting an application for a financial contribution from the Fund, a Member State requests the payment of an advance.

The Commission proposal for a Regulation of the European Parliament and of the Council amending Council Regulation (EC) No 2012/2002 in order to provide financial assistance to Member States to cover serious financial burden inflicted on them following a withdrawal of the United Kingdom from the Union without an agreement
  6
  introduces a new Article 4b with a higher maximum amount of EUR 100 million for advances. Therefore the Commission proposes to increase of the level of advance payments under the European Union Solidarity Fund by EUR 50 million, and to put that additional amount under reserve pending the adoption of the amendment to the legal base by the European Parliament and the Council.

The reserve article is adjusted as presented in the table below, and the budget remarks of articles 13 06 01 and 13 06 02 are amended.

| in EUR |
| --- |
| Budget line | Name | Commitment appropriations | Payment appropriations |
| 40 02 41 | Differentiated appropriations (Reserve for budget article 13 06 01 – Assistance to Member States in the event of a major natural disaster with serious repercussions on living conditions, the natural environment or the economy) | 50 000 000 | 50 000 000 |
| Total | 50 000 000 | 50 000 000 |

in EUR

Budget line

Name

Commitment appropriations

Payment appropriations

40 02 41

Differentiated appropriations (Reserve for budget article 13 06 01 – Assistance to Member States in the event of a major natural disaster with serious repercussions on living conditions, the natural environment or the economy)

50 000 000

50 000 000

Total

50 000 000

50 000 000

3.2
     Creation of a new budget line in the General Statement of Revenue

The Commission proposal for a Council Regulation on measures concerning the implementation and financing of the general budget of the Union in 2020 in relation to the withdrawal of the United Kingdom from the Union
  7
  lays down rules on the relations between the Union, on the one hand, and the United Kingdom and its beneficiaries on the other, as regards the financing and implementation of the budget in 2020 in the case of a UK withdrawal without an agreement.

The proposed contingency framework provides for the possibility that the UK and UK entities maintain, throughout the year 2020, the eligibility to benefit from Union financing for legal commitments entered into before the withdrawal date or between the withdrawal date and the end of 2019, in application of Regulation (EU, Euratom) 2019/1197. This is subject to the terms and conditions set out in the proposal.

In order to allow the Commission to implement the proposal, in particular to enable it to enter the contribution of the United Kingdom in the general budget, the necessary budgetary structure needs to be created for the 2020 budget. The Commission therefore proposes to create a new budget line in part B of the General Statement of revenue: new Article 3 8 0 intended to receive the UK contribution in relation to the application of the contingency framework.

The budget remarks related to the proposed new line are shown in annex.

4.Other adjustments

4.1
     Section I – European Parliament

The request to increase the establishment plan of the European Parliament (EP) by 89 posts, and to increase the level of administrative appropriations to allow for the creation of additional contract agent positions were not included in the section of the EP of the DB 2020, pending further clarifications on the reasons for the increase.

Following further exchanges with the EP, and taking into account the rigorous proposals for the administrative heading of the next multiannual financial framework, it is proposed to include in the DB 2020 the following elements for the European Parliament:

3⁄489 additional establishment plan posts for the year 2020. These posts are intended for one budget year only, and will be removed from the establishment plan in the 2021 draft budget. These posts are intended to facilitate the continuity of employment of temporary staff in the light of the application of article 29(4) of the Staff Regulations. No additional budgetary appropriations are necessary. The updated establishment plan is set out in the budgetary annex.

3⁄4EUR 13.3 million of appropriations for external staff, corresponding to 155 contract agent positions, as well as the increase in appropriations required to cover salary updates and career progression. With respect to the contract agents, 20 are new positions to be created in the 2020 budget to strengthen security, and are financed on budget line 1 4 0 1 Other staff – security. A further 135 contract agents are to be financed on budget line 1 4 0 0 Other staff – Secretariat and political groups. These contracts are already running, as the staff were recruited in 2019, with financing provided by means of transfers approved by the European Parliament’s Committee on Budgets (Transfers C1/2019 and C7/2019).

Combined effect on the EP's section of the draft budget 2020

| in EUR |
| --- |
| Budget line | Name | Commitment appropriations | Payment appropriations |
| Section I – European Parliament |
| 1400 | Other staff - Secretariat and political groups | 8 880 451 | 8 880 451 |
| 1401 | Other staff - Security | 4 452 138 | 4 452 138 |
| Total | 13 332 589 | 13 332 589 |

in EUR

Budget line

Name

Commitment appropriations

Payment appropriations

Section I – European Parliament

1400

Other staff - Secretariat and political groups

8 880 451

8 880 451

1401

Other staff - Security

4 452 138

4 452 138

Total

13 332 589

13 332 589

4.2
     Section X – European External Action Service

Since the presentation of the DB 2020, two items in the section of the European External Action Service (EEAS) have evolved, and require updating, namely:

3⁄4The NEO building;

3⁄4Adaptation of the staffing of the EU Office in Kosovo.

The NEO Building

The NEO building project consists of two buildings aiming to replace the Kortenberg building for the Common Security and Defence Policy (CSDP) departments. The project is presently ongoing and expected to be achieved by end-2020/beginning-2021.

However, during the execution of the renovation and fitting-out works, the EEAS realised that the necessary technical performance level in the fields of physical security and secured communications could not be met within the budget previously estimated.

The increases are linked to the need to protect the working environment against intrusions and eavesdropping, in conformity with the security rules established by the Council and by the Member States. The level of necessary protection measures evolves in accordance with technological progress and in line with the estimated threat levels. This means that many of the solutions previously applied, on which the original cost estimate was based, are no longer sufficient.

A project update presenting the changes and the resulting additional cost was therefore submitted to the European Parliament and the Council and was approved by their respective budget committees on September 3 and 13, 2019.

The additional cost for these security-related measures would amount to EUR 5.0 million on the EEAS' budget item 2 0 0 2. However, through reprioritisation and planned redeployment, the additional amount requested for 2020 can be reduced to EUR 2.8 million.

Adaptation of the Staffing of the EU Office in Kosovo

As a result of the 2015/2016 Strategic Review of the EULEX mission, a number of Monitoring, Mentoring and Advice tasks were transferred from EULEX to the EU Office in Kosovo in June 2018. A budget to finance 12 staff members in the Office was therefore granted to the EEAS by the European Parliament and the Council, compensated by larger cuts in the EULEX organisation.

Additional budget to finance three further posts was made available to the EEAS as from January 2019, bringing the total number of posts for transition tasks to 15. The 2019 EEAS budget was also amended to transform three cost-free Seconded National Experts (SNE) posts into co-financed status, in order to attract more interest and potential candidates from the Member States.

However, this change has not proven enough to attract sufficient interest and so far, only two SNE positions out of the total six have been filled.

Given this situation and based on an assessment of needs in the Office, the EEAS intends to transform one of these unused SNE posts into two local agent positions. This transformation is not expected to entail any additional costs for the EEAS but could possibly, depending on the experience of the agents recruited, produce some small savings over time.

Combined effect on the EEAS ' section of the draft budget 2019

| in EUR |
| --- |
| Budget line | Name | Commitment appropriations | Payment appropriations |
| Section X – European External Action Service |
| 2 0 0 2 | Fitting out and security works | 2 786 000 | 2 786 000 |
| Total | 2 786 000 | 2 786 000 |

in EUR

Budget line

Name

Commitment appropriations

Payment appropriations

Section X – European External Action Service

2 0 0 2

Fitting out and security works

2 786 000

2 786 000

Total

2 786 000

2 786 000

4.3
     Update of the Sustainable Fisheries Partnership Agreements

As foreseen in point C of Part II of the Interinstitutional Agreement (IIA)
  8
  , the Commission has examined the most recent information available concerning Sustainable Fisheries Partnership Agreements (SFPAs) and reviewed the expected needs for 2020 on the basis of the developments in the negotiation processes with the third countries involved. On the basis of this review, the Commission proposes to move commitment appropriations for an amount of EUR 16,9 million and payment appropriations for an amount of EUR 14,9 million from the reserve (40 02 41) to the operational line (11 03 01 Establishing a governance framework for fishing activities carried out by Union fishing vessels in third country waters). This budgetary-neutral transfer relates to the Fisheries Agreements with the Republic of Cape Verde, the Republic of the Gambia and the Republic of Guinea-Bissau, for which the agreements and related protocols have meanwhile been signed and have entered into provisional application.

The details by budget line are presented in the table below and the relevant budget remarks are adjusted in annex.

| in EUR |
| --- |
| Budget line | Name | Commitment appropriations | Payment appropriations |
| 11 03 01 | Establishing a governance framework for fishing activities carried out by Union fishing vessels in third country waters | +16 900 000 | +14 900 000 |
| 40 02 41 | Differentiated appropriations (Reserve for budget article 11 03 01) | -16 900 000 | -14 900 000 |
| Total | 0 | 0 |

in EUR

Budget line

Name

Commitment appropriations

Payment appropriations

11 03 01

Establishing a governance framework for fishing activities carried out by Union fishing vessels in third country waters

+16 900 000

+14 900 000

40 02 41

Differentiated appropriations (Reserve for budget article 11 03 01)

-16 900 000

-14 900 000

Total

0

0

5.Technical adjustment and correction

5.1
     Innovation Fund

The Innovation Fund was set up by Directive (EU) 2018/410 of the European Parliament and of the Council amending Directive 2003/87/EC establishing a system for greenhouse gas emission allowances trading within the Union. It supports innovation in low-carbon technologies and processes in certain economic sectors. In accordance with the provisions of Article 10a, paragraph 8, of the Emissions Trading System (ETS) Directive 2003/87/EC, the Innovation Fund is fully financed by the receipts from auctioning a certain amount of allowances to emit one tonne of carbon dioxide (equivalent during a specific period) under the ETS.

According to Article 16, paragraph 1 of Commission Delegated Regulation (EU) 2019/856 of 26 February 2019 supplementing Directive 2003/87/EC with regard to the operation of the Innovation Fund, the Commission shall implement the Innovation Fund in direct management or indirect management in accordance with the relevant provisions of the Financial Regulation. According to Article 19, paragraph 3 of Regulation (EU) 2019/856, for all implementation tasks carried out by the Commission, including through an EU executive agency, the revenue of the Innovation Fund shall constitute external assigned revenue for the EU budget within the meaning of paragraphs 1 and 5 of Article 21 of the Financial Regulation. The Innovation Fund expenditure, including the administrative cost, would be fully financed by the external assigned revenue generated by the auctioning of the emissions allowances and unspent amounts from the previous NER300 programme.

To allow the Commission to start implementing the Fund, in particular in view of a first call for project proposals to be launched by mid-2020, the necessary budgetary structure needs to be created in the 2020 budget. The Commission therefore proposes to create three new budget lines: one in the the Statement of Revenue of the Commission section, Article 6 3 7 intended to receive the external assigned revenue; two in the Statement of Expenditure of the Commission section, Article 34 03 01 and Item 34 01 06 01, intended to cover the operational and administrative expenditure (fully covered by external assigned revenue) which is needed for the implementation of the Innovation Fund by the Commission in accordance with Article 4 of Commission Delegated Regulation (EU) 2019/856.

In accordance with paragraph 1 of Article 22 of the Financial Regulation, all budget lines created for the Innovation Fund would have a token entry ‘pro memoria’ (p.m.). The budget remarks proposed for these new lines are shown in the budgetary annex. The proposed budgetary structure will allow for reporting on the implementation of the Innovation Fund as part of the annual accounts.

5.2
     European Union Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice (eu-LISA)

As a result of a clerical error, the payment appropriations for this item as published in the DB 2020 were not in line with the needs of the agency as presented in the Working Document III annexed to the Statement of Estimates 2020. It is therefore proposed to decrease the payment appropriations for eu-LISA by EUR 21,8 million, giving a total of EUR 196 million, which represents the actual needs of the agency for 2020.

| in EUR |
| --- |
| Budget line | Name | Commitment appropriations | Payment appropriations |
| 18 02 07 | European Union Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice (eu-LISA) | - | -21 794 627 |
| Total | - | -21 794 627 |

in EUR

Budget line

Name

Commitment appropriations

Payment appropriations

18 02 07

European Union Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice (eu-LISA)

-

-21 794 627

Total

-

-21 794 627

6.Summary Table by MFF Heading

| Heading | Draft Budget 2020 | Amending Letter 1/2020 | Draft Budget 2020 |
| --- | --- | --- | --- |
| | | | (incl. AL1/2020) |
| | CA | PA | CA | PA | CA | PA |
| 1. | Smart and inclusive growth | 83 328 329 504 | 72 150 922 336 | | | 83 328 329 504 | 72 150 922 336 |
| Of which under global margin for commitments | 141 890 522 | | | | 141 890 522 | |
| Ceiling | 83 661 000 000 | | | | 83 661 000 000 | |
| Margin | 474 561 018 | | | | 474 561 018 | |
| 1a | Competitiveness for growth and jobs | 24 716 438 982 | 22 108 515 486 | | | 24 716 438 982 | 22 108 515 486 |
| Ceiling | 25 191 000 000 | | | | 25 191 000 000 | |
| Margin | 474 561 018 | | | | 474 561 018 | |
| 1b | Economic  social and territorial cohesion | 58 611 890 522 | 50 042 406 850 | | | 58 611 890 522 | 50 042 406 850 |
| Of which under global margin for commitments | 141 890 522 | | | | 141 890 522 | |
| Ceiling | 58 470 000 000 | | | | 58 470 000 000 | |
| Margin | | | | | | |
| 2. | Sustainable growth: natural resources | 59 994 906 170 | 58 014 263 718 | - 49 700 000 | - 49 700 000 | 59 945 206 170 | 57 964 563 718 |
| Ceiling | 60 421 000 000 | | | | 60 421 000 000 | |
| Margin | 426 093 830 | | | | 475 793 830 | |
| Of which: European Agricultural Guarantee Fund (EAGF) — Market related expenditure and direct payments | 43 531 805 687 | 43 501 731 798 | - 49 700 000 | - 49 700 000 | 43 482 105 687 | 43 452 031 798 |
| Sub-ceiling | 43 888 000 000 | | | | 43 888 000 000 | |
| Rounding difference excluded from margin calculation | 888 000 | | | | 888 000 | |
| 3. | Security and citizenship | 3 729 074 489 | 3 723 911 857 | | - 21 794 627 | 3 729 074 489 | 3 702 117 230 |
| Of which under Flexibility Instrument | 778 074 489 | | | | 778 074 489 | |
| Ceiling | 2 951 000 000 | | | | 2 951 000 000 | |
| Margin | | | | | | |
| 4. | Global Europe | 10 307 572 239 | 8 986 061 191 | | | 10 307 572 239 | 8 986 061 191 |
| Ceiling | 10 510 000 000 | | | | 10 510 000 000 | |
| Margin | 202 427 761 | | | | 202 427 761 | |
| 5. | Administration | 10 324 060 577 | 10 327 063 787 | 16 118 589 | 16 118 589 | 10 340 179 166 | 10 343 182 376 |
| Ceiling | 11 254 000 000 | | | | 11 254 000 000 | |
| Of which offset against Contingency margin | - 252 000 000 | | | | - 252 000 000 | |
| Margin | 677 939 423 | | | | 661 820 834 | |
| Of which: Administrative expenditure of the institutions | 7 985 277 215 | 7 988 280 425 | 16 118 589 | 16 118 589 | 8 001 395 804 | 8 004 399 014 |
| Sub-ceiling | 9 071 000 000 | | | | 9 071 000 000 | |
| Of which offset against Contingency margin | - 252 000 000 | | | | - 252 000 000 | |
| Margin | 833 722 785 | | | | 817 604 196 | |
| Total | 167 683 942 979 | 153 202 222 889 | - 33 581 411 | - 55 376 038 | 167 650 361 568 | 153 146 846 851 |
| Of which under Flexibility Instrument | 778 074 489 | 849 779 197 | | - 14 914 951 | 778 074 489 | 834 864 246 |
| Of which under global margin for commitments | 141 890 522 | | | | 141 890 522 | |
| Ceiling | 168 797 000 000 | 172 420 000 000 | | | 168 797 000 000 | 172 420 000 000 |
| Of which offset against Contingency margin | - 252 000 000 | | | | - 252 000 000 | |
| Margin | 1 781 022 032 | 20 067 556 308 | | | 1 814 603 443 | 20 108 017 395 |
| | Other special Instruments | 587 763 000 | 418 500 000 | 50 000 000 | 50 000 000 | 637 763 000 | 468 500 000 |
| Grand Total | 168 271 705 979 | 153 620 722 889 | 16 418 589 | - 5 376 038 | 168 288 124 568 | 153 615 346 851 |

Heading

Draft Budget 2020

Amending Letter 1/2020

Draft Budget 2020

(incl. AL1/2020)

CA

PA

CA

PA

CA

PA

1.

Smart and inclusive growth

83 328 329 504

72 150 922 336

83 328 329 504

72 150 922 336

Of which under global margin for commitments

141 890 522

141 890 522

Ceiling

83 661 000 000

83 661 000 000

Margin

474 561 018

474 561 018

1a

Competitiveness for growth and jobs

24 716 438 982

22 108 515 486

24 716 438 982

22 108 515 486

Ceiling

25 191 000 000

25 191 000 000

Margin

474 561 018

474 561 018

1b

Economic  social and territorial cohesion

58 611 890 522

50 042 406 850

58 611 890 522

50 042 406 850

Of which under global margin for commitments

141 890 522

141 890 522

Ceiling

58 470 000 000

58 470 000 000

Margin

2.

Sustainable growth: natural resources

59 994 906 170

58 014 263 718

- 49 700 000

- 49 700 000

59 945 206 170

57 964 563 718

Ceiling

60 421 000 000

60 421 000 000

Margin

426 093 830

475 793 830

Of which: European Agricultural Guarantee Fund (EAGF) — Market related expenditure and direct payments

43 531 805 687

43 501 731 798

- 49 700 000

- 49 700 000

43 482 105 687

43 452 031 798

Sub-ceiling

43 888 000 000

43 888 000 000

Rounding difference excluded from margin calculation

888 000

888 000

3.

Security and citizenship

3 729 074 489

3 723 911 857

- 21 794 627

3 729 074 489

3 702 117 230

Of which under Flexibility Instrument

778 074 489

778 074 489

Ceiling

2 951 000 000

2 951 000 000

Margin

4.

Global Europe

10 307 572 239

8 986 061 191

10 307 572 239

8 986 061 191

Ceiling

10 510 000 000

10 510 000 000

Margin

202 427 761

202 427 761

5.

Administration

10 324 060 577

10 327 063 787

16 118 589

16 118 589

10 340 179 166

10 343 182 376

Ceiling

11 254 000 000

11 254 000 000

Of which offset against Contingency margin

- 252 000 000

- 252 000 000

Margin

677 939 423

661 820 834

Of which: Administrative expenditure of the institutions

7 985 277 215

7 988 280 425

16 118 589

16 118 589

8 001 395 804

8 004 399 014

Sub-ceiling

9 071 000 000

9 071 000 000

Of which offset against Contingency margin

- 252 000 000

- 252 000 000

Margin

833 722 785

817 604 196

Total

167 683 942 979

153 202 222 889

- 33 581 411

- 55 376 038

167 650 361 568

153 146 846 851

Of which under Flexibility Instrument

778 074 489

849 779 197

- 14 914 951

778 074 489

834 864 246

Of which under global margin for commitments

141 890 522

141 890 522

Ceiling

168 797 000 000

172 420 000 000

168 797 000 000

172 420 000 000

Of which offset against Contingency margin

- 252 000 000

- 252 000 000

Margin

1 781 022 032

20 067 556 308

1 814 603 443

20 108 017 395

Other special Instruments

587 763 000

418 500 000

50 000 000

50 000 000

637 763 000

468 500 000

Grand Total

168 271 705 979

153 620 722 889

16 418 589

- 5 376 038

168 288 124 568

153 615 346 851