# EUR-Lex - 52010DC0601 - EN

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# 52010DC0601

**/* COM/2010/0601 final */ AMENDING LETTER N° 3 TO THE DRAFT GENERAL BUDGET 2011 STATEMENT OF REVENUE AND EXPENDITURE BY SECTION Section III - Commission **

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[pic] | EUROPEAN COMMISSION |

Brussels, 20.10.2010

COM(2010) 601 final

AMENDING LETTER N° 3 TO THE DRAFT GENERAL BUDGET 2011

STATEMENT OF REVENUE AND EXPENDITURE BY SECTION Section III - Commission

AMENDING LETTER N° 3 TO THE DRAFT GENERAL BUDGET 2011

STATEMENT OF REVENUE AND 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 Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities[1], and in particular Article 37 thereof,

- the draft general budget of the European Union for the financial year 2011 presented by the Commission on 15 June 2010,

- the draft amending letter No. 1/2011[2],

- the draft amending letter No. 2/2011[3],

The European Commission hereby presents to the budgetary authority the Amending Letter No. 3 to the 2011 draft budget 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 ( http://eur-lex.europa.eu/budget/www/index-en.htm ). An English version of the changes to these statements by section is attached for information as a budgetary annex.

TABLE OF CONTENTS

1. Introduction 5

2. Preservation and Management of Natural Resources 5

2.1 Introduction 5

2.2 Summary Table 6

2.3 EAGF expenditure (market-related expenditure and direct payments) 6

2.3.1 Overall Picture 6

2.3.2 Detailed Comments 6

2.4 International Fisheries Agreements 9

2.5 Changes to the nomenclature and budgetary remarks 9

3. The European Economic Recovery Plan (EERP) 10

4. Summary table by heading of the Financial Framework 11

1. INTRODUCTION

The Amending Letter No 3 (AL 3) to the Draft Budget for 2011 (DB 2011) covers the following:

- the line by line updating of the estimated needs for agricultural expenditure. In addition to changing market factors, the AL also incorporates legislative decisions adopted in the agricultural sector since the DB 2011 was drawn up, revised estimates of needs for some direct payments, as well as any proposals, which are expected to have effect during the coming budget year. Commitment and payment appropriations are decreased by EUR 346 million;

- an update of the situation for International Fisheries Agreements, decreasing commitment appropriations by EUR 1 million;

- the creation of a new budget item 32 04 14 04 - Energy projects to aid economic recovery - Energy efficiency and renewable initiatives.

2. PRESERVATION AND MANAGEMENT OF NATURAL RESOURCES

2.1 Introduction

The Amending Letter No 3 is sent to the budgetary authority in accordance with Article 314 of the Lisbon Treaty which provides that "the Commission may amend the draft budget during the procedure until such time as the Conciliation Committee, referred to in paragraph 5, is convened".

The AL is based, in the same way as the DB itself, on the needs of the Community as a whole. It must be stressed that these appropriations are to be understood as a forecast and not as an objective of expenditure. The actual expenditure will depend, in particular, on actual market conditions, on the actual euro-dollar exchange rate, and on the rhythm of the payments by Member States. In accordance with the legal base, whatever the amount a Member State is obliged to pay in accordance with the regulations – within the limits set by the financial framework - will be reimbursed in full.

For clarification and transparency purposes, some budgetary comments have been updated.

According to the present AL 3, overall appropriations for heading 2 are estimated at EUR 59 139 million, leaving a margin of EUR 1 199 million in commitment appropriations below the corresponding ceiling of the Financial Framework.

The commitment appropriations for agricultural expenditure (including veterinary and fisheries expenditure financed under the EAGF) amount to EUR 43 401 million, a decrease of EUR 346 million compared with the DB 2011, mostly explained by higher than expected assigned revenue received in 2010 and by the favourable situation on agricultural markets. EAGF payment appropriations are decreased by the same amount to give a total of EUR 43 311 million.

As far as the International Fisheries Agreements are concerned, the AL proposes a very small adjustment of commitment appropriations by EUR 1 million.

2.2 Summary Table

DB 2011 | AL3/2011 | Difference |

EUR million | (a) | (b) | (c)=(b)-(a) |

(in million EUR) | (in million EUR) | (in million EUR) |

Interventions in agricultural markets |

05 02 01 | Cereals | 126,1 | 18,1 | -108,0 | Lower need for intervention measures following updated market forecasts translating into lower intervention stocks. |

05 02 08 | Fruits and vegetables | Lower needs resulting from analysis of actual demands for operational funds for producer organisations (- EUR 26 million), slightly higher expenditure for RAL from previous measures (+EUR 1,8 million) and higher revenue assigned to budget item 05 02 08 03 Operational funds for producer organisations (+ EUR 200 million). |

--- Appropriations | 915,3 | 691,1 | -224,2 |

--- Needs | 1 015,3 | 991,1 | -24,2 |

05 02 09 | Products of the wine-growing sector | 1 145,7 | 1 143,7 | -2,0 | Small decrease of needs following updated information for storage of alcohol. |

05 02 11 | Other plant products/measures | 380,9 | 388,9 | +8,0 | Additional needs related to dried fodder (+ EUR 7 million) on the basis of latest production figures and for POSEI measures (+ EUR 1 million) following a review of market measures part and direct aid part. |

05 02 12 | Milk and milk products | 104,0 | 90,0 | -14,0 | Lower needs for intervention measures for butter (- EUR 3 million) and skimmed milk powder (- EUR 11 million) following updated market forecasts translating into lower intervention stocks. |

05 02 13 | Beef and veal | 24,1 | 35,1 | +11,0 | Higher needs for export refunds for beef and veal (+ EUR 8 million) and for live animals (+ EUR 2 million) on the basis of latest figures on issued export licences as well as a small increase for settling RAL related to exceptional support measures (+ EUR 1 million). |

05 02 15 | Pigmeat, eggs and poultry, bee-keeping and other animal products | 124,0 | 117,0 | -7,0 | Higher needs for measures in favour of bee-keeping (+ EUR 8 million), outstanding payments on export refunds for pigmeat (+ EUR 3 million) and export refunds for eggs (+ EUR 1 million); lower needs for export refunds for poultry (- EUR 19 million). |

Directs Aids |

05 03 01 | Decoupled directs aids | For the Single Payment Scheme (SPS), the needs change by – EUR 3 million because of a decrease for UK (shift to article 05 03 02 36 – Specific type of farming) and an increase for Spain (Change in the hypothesis of under execution). The Single Area Payment Scheme (SAPS) decreases by – EUR 31 million because of shifts related to Hungary (to article 05 03 01 05 - Specific support art 68) and Slovakia (to article 05 03 01 03 – Sugar payment). Furthermore, there is a change in assigned revenue for SPS of EUR 29 million |

--- Appropriations | 36 489,0 | 36 454,0 | -35,0 |

--- Needs | 37 077,0 | 37 071,0 | -6,0 |

05 03 02 | Other direct aids | 3 422,0 | 3 447,0 | +25,0 | Minor variations, leading to increases and decreases, are due to: - Shift between lines: 05 03 02 36 (Specific type of farming) and 05 03 02 44 (Specific support – Art. 68) - Change in the hypothesis of under execution: 05 03 02 05 (Seeds); 05 03 02 39 (Additional amounts for sugar); 05 03 02 43 (Soft fruit payment). - POSEI lines (05 03 02 - 50 and 05 03 02 52) are modified in order to take into account fresh information from the plans submitted by Member States. |

2.4 International Fisheries Agreements

The Commission has examined the most recent information available concerning fisheries agreements and proposes to decrease commitment appropriations for budget article 11 03 01 by EUR 1 million (revised estimates for additional catches).

2.5 Changes to the nomenclature and budgetary remarks

The budgetary remarks for the following chapters, articles and items have been updated (explanation in brackets):

Chapter 05 02 – Interventions in agricultural markets (figures for assigned revenues)

Article 05 02 16 01– Sugar Restructuring Fund (figures for assigned revenue)

Chapter 05 03 – Direct aids (figures for assigned revenues)

Item 6 7 0 1 – Clearance of EAGF accounts – Assigned revenue (figures for assigned revenue)

Item 6 7 0 2 – EAGF irregularities – Assigned revenue (figures for assigned revenue)

Item 6 7 0 3 – Superlevy from milk producers – Assigned revenue (figures for assigned revenue)

Item 6 8 0 1 – Temporary restructuring amounts – Assigned revenue (figures for assigned revenue)

3. THE EUROPEAN ECONOMIC RECOVERY PLAN (EERP)

IN MAY 2010, THE COMMISSION PROPOSED AN AMENDMENT TO REGULATION (EC) 663/2009 TO USE THE UNCOMMITTED FUNDS UNDER CHAPTER II OF THE EERP REGULATION FOR THE CREATION OF A DEDICATED FINANCIAL INSTRUMENT TO SUPPORT ENERGY EFFICIENCY AND RENEWABLE INITIATIVES.

The financial facility shall support the development of bankable energy efficiency and renewable energy projects and facilitate the financing of investments in energy efficiency and renewable energy, in particular in urban settings. In order to foster a large number of decentralised investments, municipal, local and regional public authorities will be the beneficiaries. In compliance with the EERP Regulation, the facility should be limited to the financing of measures that have a rapid, measurable and substantial impact on economic recovery within the EU, increased energy security and reduction of greenhouse gas emissions.

This proposal is fully in line with the Declaration of the Commission referred to in Recital 7 of the EERP Regulation, indicating its intention to propose measures allowing for the reallocation of uncommitted funds to the financing of projects in the areas of energy efficiency and energy from renewable sources.

The proposed amending Regulation is presently being examined by the European Parliament and the Council.

Therefore, the Commission proposes the creation of a new budget item 32 04 14 04 - Energy projects to aid economic recovery - Energy efficiency and renewable initiatives. The budget item is created under the new Title 32 "Energy". The creation of the same budget item is proposed in Amending Budget 10/2010 under Title 6 "Energy and Transport as line 06 04 14 04.

4. SUMMARY TABLE BY HEADING OF THE FINANCIAL FRAMEWORK

Financial framework Heading/subheading | 2011 Financial framework | 2011 Draft Budget + AL 1-2/2011 | AL 3/2011 | 2011 Draft Budget + AL 1-3/2011 |

|CA |PA |CA |PA |CA |PA |CA |PA | | 1. SUSTAINABLE GROWTH | | | | | | | | | | 1a. Competitiveness for growth and employment |12 987 000 000 | |13 438 076 270 |12 110 938 170 | | |13 438 076 270 |12 110 938 170 | |1b. Cohesion for growth and employment |50 987 000 000 | |50 970 093 784 |42 540 796 740 | | |50 970 093 784 |42 540 796 740 | | Total |63 974 000 000 | |64 408 170 054 |54 651 734 910 | | |64 408 170 054 |54 651 734 910 | | Margin[5] | | |65 829 946 | | | |65 829 946 | | | 2. PRESERVATION AND MANAGEMENT OF NATURAL RESOURCES | | | | | | | | | | Of which market related expenditure and direct payments |47 617 000 000 | |43 747 401 900 |43 656 761 358 |-346 200 000 |-346 200 000 |43 401 201 900 |43 310 561 358 | | Total |60 338 000 000 | |59 486 248 389 |58 135 685 296 |-347 200 000 |-346 200 000 |59 139 048 389 |57 789 485 296 | | Margin | | |851 751 611 | | | |1 198 351 611 | | | 3. CITIZENSHIP, FREEDOM, SECURITY AND JUSTICE | | | | | | | | | | 3a. Freedom, Security and Justice |1 206 000 000 | |1 135 252 740 |853 125 740 | | |1 135 804 740 |853 125 740 | |3b. Citizenship |683 000 000 | |667 817 000 |638 979 000 | | |667 817 000 |638 979 000 | | Total |1 889 000 000 | |1 803 069 740 |1 492 104 740 | | |1 803 621 740 |1 492 104 740 | | Margin | | |85 378 260 | | | |85 378 260 | | | 4. EU AS A GLOBAL PLAYER[6] |8 430 000 000 | | 8 613 529 377 |7 601 763 867 | | | 8 613 529 377 |7 601 763 867 | | Margin | | | 70 330 623 | | | | 70 330 623 | | | 5. ADMINISTRATION[7] |8 334 000 000 | |8 289 835 688 |8 290 890 688 | | |8 289 835 688 |8 290 890 688 | | Margin | | | 126 164 312 | | | | 126 164 312 | | | TOTAL |142 965 000 000 |134 280 000 000 |142 601 405 248 |130 172 179 501 |-347 200 000 |-346 200 000 |142 254 205 248 |129 825 979 501 | | Margin | | |1 199 454 752 |4 392 820 499 | | |1 546 654 752 |4 739 020 499 | |

[1] OJ L 248, 16.9.2002, p. 1.

[2] SEC (2010) 1064.

[3] SEC (2010) 1199.

[4] European Agricultural Guarantee Fund (EAGF) expenditure, including EUR 30 million under title 11 Fisheries and Maritime Affairs and EUR 342,9 million under title 17 Health and Consumer Protection.

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

[6] The 2011 margin for heading 4 does not take into account the appropriations related to the Emergency Aid Reserve (EUR 253,9 million).

[7] 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 82 million for the staff contributions to the pension scheme.