# EUR-Lex - 52010DC0750 - EN

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# 52010DC0750

**DRAFT GENERAL BUDGET 2011 STATEMENT OF REVENUE AND EXPENDITURE BY SECTION /* COM/2010/0750 final */ **

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[pic] | EUROPEAN COMMISSION |

Brussels, 26.11.2010

COM(2010) 750 final

DRAFT GENERAL BUDGET 2011

STATEMENT OF REVENUE AND EXPENDITURE BY SECTION

DRAFT GENERAL BUDGET 2011

STATEMENT OF REVENUE AND EXPENDITURE BY SECTION

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 original draft general budget of the European Union for the financial year 2011 presented by the Commission on 15 June 2010[2],

- the draft amending letter No. 1/2011[3],

- the draft amending letter No. 2/2011[4],

- the draft amending letter No. 3/2011[5],

- the Council's position on the original draft general budget of the European Union for the financial year 2011 adopted by the Council on 12 August 2010,

- the European Parliament's amendments on the Council's position on the original draft general budget of the European Union for the financial year 2011, adopted by the European Parliament on 20 October 2010,

The European Commission hereby presents to the budgetary authority the draft general budget for 2011.

TABLE OF CONTENTS

1. Introduction 4

2. The 2011 draft budget within the multiannual financial framework 4

2.1 Ceilings of the multiannual financial framework for the 2011 budget 4

2.2. Overview on the new 2011 draft budget. 5

3. Key Elements of the New Draft Budget Proposal 7

3.1. General Approach on Payment Appropriations 7

3.2 Expenditure Headings of the Financial Framework 8

3.2.1 Heading 1a — Competitiveness for Growth and Employment 8

3.2.2 Heading 1b — Cohesion for Growth and Employment 9

3.2.3 Heading 2 — Preservation and Management of Natural Resources 10

3.2.4 Heading 3a — Freedom, Security and Justice 10

3.2.5 Heading 3b — Citizenship 11

3.2.6 Heading 4 — EU as a Global Player 11

3.2.7 Heading 5 — Administration 12

3.3. Horizontal Issues 13

3.3.1 Decentralised agencies 13

3.3.2 Executive agencies 13

3.3.3 Pilot Projects and Preparatory Actions 13

3.3.4 Budgetary remarks 14

3.3.5 New budget lines 14

3.3.6 Reserves 14

4. Concluding Remarks 14

5. 2011 draft budget by financial framework headings 15

5.1 2011 draft budget by financial framework headings (aggregate) 15

5.2 2011 draft budget by financial framework headings (detailed) 18

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.

1. INTRODUCTION

The Commission transmitted the draft budget for 2011 in all the official languages on 15 June 2010[6]. The 2011 draft budget is the first to be negotiated under the new arrangements put in place by the Lisbon Treaty. Council completed its reading of the draft budget on 12 August, while the European Parliament voted its reading on 20 October. As the European Parliament adopted amendments to the draft budget, which could not be accepted by the Council, a Conciliation Committee was convened, in accordance with article 314 §4(c) of the Treaty on the Functioning of the European Union (TFEU).

The Conciliation Committee worked over a period of twenty-one days, between 26 October and 15 November and came very close to an agreement on the elements of the draft budget for 2011. However, it was finally not possible to reconcile the positions of the European Parliament and Council within the time period allowed, and so, in accordance with article 314 §8 of the TFEU, " a new draft budget shall be submitted by the Commission ".

2. THE 2011 DRAFT BUDGET WITHIN THE MULTIANNUAL FINANCIAL FRAMEWORK

2.1 Ceilings of the multiannual financial framework for the 2011 budget

In the Multiannual Financial Framework (MAFF), the ceilings for commitment appropriations for each expenditure heading for 2011 are as follows:

Heading | In million EUR, at current prices |

1. Sustainable Growth 1a Competitiveness for Growth and Employment 1b Cohesion for Growth and Employment | 63 974 12 987 50 987 |

2. Preservation and Management of Natural Resources of which: Market related expenditure and direct payments | 60 338 47 617 |

3. Citizenship, Freedom, Security and Justice 3a Freedom, Security and Justice 3b Citizenship | 1 889 1 206 683 |

4. EU as a Global Player | 8 430 |

5. Administration | 8 334 |

TOTAL | 142 965 |

In the MAFF, the overall ceiling for commitment appropriations (EUR 142 965 million) represents 1,14 % of EU gross national income (GNI). The ceiling for payment appropriations is EUR 134 280 million, or 1,07 % of GNI.

2.2 Overview on the new 2011 draft budget.

EUR million

Budget 2010 (1) | New draft budget 2011 | Difference |

Margin (2) | -27,2 |

— Competitiveness for growth and employment | 14 862,9 | 11 343,3 | 13 520,6 | 11 645,8 | -9,0% | 2,7% |

Excluding energy projects to aid economic recovery (EERP) | 12 882,9 | 10 315,8 | 13 520,6 | 11 620,6 | 5,0% | 3,0% |

Margin (2) | -33,6 |

— Cohesion for growth and employment | 49 386,6 | 36 370,9 | 50 980,6 | 41 682,5 | 3,2% | 14,6% |

Margin | 6,4 |

2. Preservation and Management of Natural Resources | 59 498,8 | 58 135,6 | 58 659,2 | 56 409,3 | -1,4% | -3,0% |

Margin | 1 678,8 |

3. Citizenship, Freedom, Security and Justice | 1 687 ,5 | 1 411,0 | 1 821,9 | 1 460 ,2 | 8,0% | 3,5% |

Margin | 67,1 |

— Freedom, security and justice | 1 006,5 | 738,6 | 1 139,0 | 814,3 | 13,2% | 10,2% |

Margin | 67,0 |

— Citizenship | 681,0 | 672,4 | 682,9 | 646,0 | 0,3% | -3,9% |

Margin | 0,1 |

4. EU as a Global Player | 8 141,0 | 7 787,7 | 8 754,3 | 7 249,0 | 7,5% | -6,9% |

Margin (3) | -70,4 |

5. Administration | 7 908,0 | 7 907,5 | 8 081,7 | 8 080,4 | 2,2% | 2,2% |

Margin (4) | 334,3 |

Total | 141 484,8 | 122 955,9 | 141 818,3 | 126 527,1 | 0,2% | 2,9% |

Excluding energy projects to aid economic recovery | 139 504,8 | 121 928,4 | 141 818,3 | 125 502,1 | 1,7% | 2,9% |

Margin (5), (6) | 1 982,6 | 7 934,9 |

Appropriations as % of GNI | 1,17% | 1,02% | 1,13% | 1,01% |

(1) Budget 2010 includes amending budgets 1 to 7. (2) The margin for heading 1a does not take into account the appropriations related to the European Globalisation adjustment Fund (EUR 500 million). (3) The margin for heading 4 does not take into account the appropriations related to the Emergency Aid Reserve (EUR 253,9 million). (4) 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 pensions scheme. (5) The global margin for the commitments does not take into account the appropriations related to the European Globalisation adjustment Fund (EUR 500 million), the Emergency Aid Reserve (EUR 253,9 million) and to the staff contributions to the pensions scheme (EUR 82 million). (6) The global margin for the payments does not take into account the appropriations related to the Emergency Aid Reserve (EUR 100 million) and to the staff contributions to the pensions scheme (EUR 82 million). |

The Commission presents this new proposal for a draft budget for 2011, in line with the positions as expressed by both Council and European Parliament at the conciliation period.

In terms of commitment appropriations, the total expenditure proposed in the 2011 draft budget is EUR 141 818,3 million, corresponding to 1,13 % of GNI, that is EUR 332,0 million more than in 2010. This leaves a combined margin of EUR 1 984,1 million under the ceilings.

Payment appropriations are set at the level retained by Council in August, i.e. EUR 126 527,1 million, corresponding to 1,01 % of GNI. This is an increase of EUR 3 571,2 million compared to payment appropriations in the 2010 budget, and leaves a margin of EUR 7 934,9 million under the ceiling. Parliament expressed its understanding for Council's position given the budgetary constraints that Member States currently face. The Commission repeats its firm belief that this level of payments can only be agreed to, if it is accompanied by the commitment of the budgetary authority to act promptly on requests for additional payment appropriations through amending budgets or transfers, in order to avoid any shortfall in payment appropriations.

Commitment appropriations for Competitiveness for Growth and Employment (heading 1a) are proposed at EUR 13 520,6 million, which is a decrease of 9,0 % compared to the 2010 budget. As these amounts exceed the ceiling of heading 1a, the Commission proposes simultaneously to mobilise the Flexibility Instrument by EUR 34 million[7]. Payment appropriations increase by 2,7 % to EUR 11 645,8 million. The apparent reduction in commitment appropriations for this heading must be seen in the context of the inclusion in the 2010 budget of the second tranche of additional appropriations for the funding of energy projects to aid economic recovery. Once this element is excluded, commitment and payment appropriations increase by 5,0 % and 3,0 % respectively.

For Cohesion for Growth and Employment (heading 1b) commitment appropriations increase by 3,2 % to EUR 50 980,6 million, leaving a margin of EUR 6,4 million. Payment appropriations increase by 14,6 %, to EUR 41 682,5 million. The substantial increase in the level of payments reflects the cruising speed reached by the Cohesion policy programmes related to the 2007 – 2013 programming period, thus contributing to economic recovery in Europe.

Commitment appropriations of EUR 58 659,2 million are proposed for Preservation and Management of Natural Resources (heading 2) , , which is a decrease of 1,4 % compared to the 2010 budget and leaves a margin of EUR 1 680,3 million under the ceiling. Payment appropriations decrease by 3,0 % to amount to EUR 56 409,3 million. Within this heading the amount foreseen for market related expenditure and direct aids reaches EUR 42 891,2 million in commitment appropriations, and EUR 42 786,6 million in payment appropriations.

Freedom, Security and Justice (heading 3a) sees an important increase in commitment appropriations of 13,2 %, rising to EUR 1 139,0 million, leaving a margin of EUR 67,0 million. Payment appropriations also increase significantly, by 10,2 % to EUR 814,3 million.

For Citizenship (heading 3b) , commitment appropriations amount to EUR 682,9 million, leaving nearly no margin (EUR 0,1 million). Payment appropriations for this heading decrease by 3,9 % to EUR 646,0 million. The decrease is due to the mobilisation of the Solidarity Fund in 2010 (EUR 13,0 million), that has been added to the original budget in the course of the year.

Heading 4, the EU as a Global Player sees an increase in commitment appropriations of 7,5 % to EUR 8 754,3 million, exceeding the ceiling on heading 4. The Commission proposes simultaneously to mobilise the Flexibility Instrument by EUR 71 million[8]. Payment appropriations decrease by 6,9 % to EUR 7 249,0 million. The total amount of payment appropriations is lower compared to 2010, since outstanding commitments (the so-called ‘RAL’, reste à liquider ) on many ‘completion’ lines for previous programmes that are being closed have diminished substantially.

Commitment and payment appropriations for Administrative expenditure (heading 5) increase by overall 2,2 %, with commitments set at EUR 8 081,7 million and payments at EUR 8 080,4 million. This leaves a margin of EUR 334,3 million[9].

3. Key Elements of the New Draft Budget Proposal

The starting point for the preparation of this new draft budget for 2011 is the Commission's original proposal from June, as modified by three letters of amendment (AL) – AL 1/2011[10] (European External Action Service), AL 2/2011[11] (agencies and European Financial Stabilisation Mechanism), and AL 3/2011[12] (agricultural expenditure).

The changes now proposed reflect the discussions which have already taken place between the two arms of the Budgetary Authority. These discussions have led to an important degree of convergence, and these elements of compromise are retained in the Commission's new proposal, with a view to facilitating a swift agreement on Budget 2011.

The consequences of non-agreement on the budget would be detrimental to the implementation of key policies and programmes, and would send a damaging message to the citizens of Europe at a time of economic uncertainty. The credibility of EU at international level would also be hindered.

It is with this imperative in mind that the Commission is seeking to reconcile the positions of the two arms of the Budgetary Authority in this proposal for a new draft budget.

The details of the changes proposed are outlined hereafter.

3.1. General Approach on Payment Appropriations

A major adaptation is that of the level of payment appropriations. In the original 2011 draft budget, the Commission proposed an increase of 5,8 % for payments, compared to the 2010 budget on the basis of an evaluation of the payment needs for programmes.

Since then the economic difficulties facing Europe have become more apparent, and a general consensus has developed across the Member States on the need to apply austerity measures. Therefore, this new draft budget proposes an overall level of payment appropriations of EUR 126,5 billion, as proposed by the Council. There were converging views during the conciliation that this amount could be an essential element of a possible overall agreement.

Nevertheless, the Commission would also like to stress that contrary to national budgets, the EU budget can never be in deficit, and all the requests for reimbursements coming from the Member States in relation to policy implementation must be honoured. In this respect, a joint declaration with the two arms of the Budgetary Authority confirming their readiness to deal swiftly with amending budget or transfers in case of need is essential.

To meet this requirement, a reduction in payments appropriations has been made necessary, compared to Commission's initial proposal for the 2011 draft budget, through the following methodology:

After taking into account the consequences of the adjustments proposed for non differentiated appropriations and for specific payment reinforcements, as detailed below under sections 3.2 and 3.3, the overall reduction in payment appropriations, as compared to the Commission's draft budget including amending letters, has been broken down between the various headings as follows:

- One third on heading 1b,

- One third on heading 2,

- One third on headings 1a, 3a and 4,

- No impact on heading 3b.

The reductions compared to the level of payments within each heading has been shared out proportionally on all budget lines with differentiated appropriations, taking however into consideration specific adjustments on which the Conciliation Committee expressed converging views, as described in sections 3.2 and 3.3 below and with the exception of pilot projects and preparatory actions, decentralised agencies, the budget lines of heading 1b that have been left unchanged in payments by both arms of the budgetary authority in their respective readings of the original draft budget (mostly convergence) and the Life+ and animal and plant health programmes within heading 2, as well as the Emergency Aid Reserve (EAR) in heading 4.

3.2 Expenditure Headings of the Financial Framework

Excluding agencies (decentralised and executive) and proposals on pilot projects and preparatory actions, which are detailed in section 3.3 below, the following adjustments by heading of the multi-annual financial framework are included in the new draft budget.

3.2.1 Heading 1a — Competitiveness for Growth and Employment

The Commission proposes to increase the level of commitment appropriations for a number of actions (see table), while maintaining the same level as proposed in the original draft budget for most others. The increases reflect the European Parliament priorities in relation to Youth, SMEs and research.

This creates a situation where the level of commitment appropriations exceeds the ceiling of the multi-annual financial framework, and so the Commission proposes to mobilise the Flexibility Instrument for an amount of EUR 34 million for heading 1a.

The general methodology on payment appropriations applies to this heading. Nevertheless when increases have been proposed by the European Parliament in its reading to accompany the increases in commitments, they have been included as such in the new draft budget. The Commission also confirms an amount of EUR 50 million in payments for the European Globalisation Adjustment Fund (EGF), subject to the overall reduction described in section 3.1.

EUR million

Budget line | Heading | Reinforcements / reductions of commitment appropriations |

Original draft budget 2011 | New draft budget 2011 | Difference |

02 02 01 | Competitiveness and Innovation Framework Programme — Entrepreneurship and Innovation Programme | 138,0 | 148,0 | + 10,0 |

04 03 02 | Cost of preliminary consultation meetings with trade union representatives | 0,45 | 0,5 | + 0,05 |

04 03 03 01 | Industrial relations and social dialogue | 16,4 | 16,5 | + 0,1 |

04 03 03 02 | Information and training measures for workers’ organisations | 16,7 | 17,0 | + 0,3 |

04 03 03 03 | Information, consultation and participation of representatives of undertakings | 7,3 | 7,5 | + 0,2 |

04 03 04 | EURES (European Employment Services) | 19,5 | 20,5 | + 1,0 |

08 13 01 | Capacities — Research for the benefit of small and medium-sized enterprises (SMEs) | 221,1 | 223,1 | + 2,0 |

09 02 01 | Definition and implementation of EU policy in the field of electronic communication | 2,4 | 4,0 | + 1,6 |

12 02 02 | Solvit programme and Single Market Assistance Services Action plan | p.m. | 1,3 | + 1,3 |

15 02 02 | Erasmus Mundus | 94,5 | 96,5 | + 2,0 |

15 02 22 | Lifelong learning programme | 1 009,7 | 1 027,7 | + 18,0 |

15 05 77 | People | 754,4 | 764,4 | + 10,0 |

24 02 01 | Operational programmes in the fight against fraud | 14,2 | 15,0 | + 0,8 |

32 04 06 | Competitiveness and Innovation Framework Programme — ‘Intelligent Energy — Europe’ programme | 104,5 | 114,5 | + 10,0 |

32 06 01 | Research related to Energy | 157,7 | 167,7 | + 10,0 |

Sub-total | Reinforcements | + 67,4 |

Prince — Communication on economic and monetary union, including the euro | 6,5 | 5,5 | - 1,0 |

02 04 | Support to EU-Japan Centre for Industrial Cooperation and membership to international study groups | 2,45 | 2,15 | - 0,3 |

12 02 01 | Implementation and development of the Internal market | 8,8 | 8,4 | - 0,4 |

26 02 01 | Procedures for awarding and advertising public supply, works and service contracts | 15,2 | 14,4 | - 0,8 |

Sub-total | Reductions | - 2,5 |

Total | + 64,9 |

3.2.2 Heading 1b — Cohesion for Growth and Employment

The level of commitment appropriations remains unchanged compared to the original draft budget, with one exception: a new budget article 13 03 31 "Technical assistance and dissemination of information on the EU strategy for the Baltic Sea Region and an improved knowledge of macro-regions strategy", which is created for an amount of EUR 2,5 million in commitment (with no payments).

Payment appropriations have been adapted so that the limit of EUR 126,5 billion for the total draft budget is respected, It is particularly important for this heading that the joint declaration referred to in section 3.1 above is confirmed, so that additional payments can be made available quickly if needed.

3.2.3 Heading 2 — Preservation and Management of Natural Resources

The careful analysis of needs made by the Commission in its original draft budget, and subsequently updated by the amending letter 3/2011 is the starting point for the new proposal. The new proposal integrates some priorities of the European Parliament such as reinforcements for School milk , Life+ , the Community Fisheries Control Agency and Animal Health , and partially includes the Council's position on the Clearance of accounts . These adjustments are set out in the table below.

For non-differentiated appropriations, payments are set at the same level as commitments. For other budget lines, the general methodology on payments is followed (see section 3.1 above).

EUR million

Budget line | Heading | Reinforcements / reductions of commitment appropriations |

Original draft budget 2011 | New draft budget 2011 | Difference |

05 02 12 08 | School milk | 80,0 | 90,0 | + 10,0 |

07 03 07 | LIFE+ (Financial Instrument for the Environment — 2007 to 2013) | 298,3 | 305,0 | + 6,7 |

11 07 01 | Support for the management of fishery resources (collection of basic data) | 46,0 | 48,0 | + 2,0 |

11 08 05 02 | Community Fisheries Control Agency (CFCA) — Contribution to Title 3 | 1,501 | 5,501 | + 4,0 |

17 04 01 01 | Animal disease eradication and monitoring programmes and monitoring of the physical conditions of animals that could pose a public health risk linked to an external factor — New measures | 260,0 | 270,0 | + 10,0 |

Sub-total | Reinforcements | + 32,7 |

05 07 01 06 | Accounting clearance of previous years' accounts with regard to shared management expenditure under the EAGGF Guarantee Section (previous measures) and under the EAGF | -72,0 | -272,0 | - 200,0 |

Sub-total | Reductions | - 200,0 |

Total | - 167,3 |

This draft budget includes also EUR 540 million of assigned revenue for EAGF carried over from 2010 to 2011. This amount is higher than the amount of EUR 210 million which was foreseen in the amending letter 3/2011 to the original 2011 draft budget because a reduced use of assigned revenue generated in 2010 in the execution of the budget 2010. As a consequence, this additional assigned revenue carried over from 2010 to 2011 reduces the need for appropriations on the budget lines 05 02 08 03 ( Operational funds for producer organisations ) and 05 03 01 ( Single Payment Scheme - SPS ) by EUR 330 million. The effect of reduced appropriation on these lines is to increase the unallocated margin available in 2011 of heading 2 by the same amount.

3.2.4 Heading 3a — Freedom, Security and Justice

The Commission's proposal remains largely unchanged, with the following modifications:

EUR million

Budget line | Heading | Reinforcements / reductions of commitment appropriations |

Original draft budget 2011 | New draft budget 2011 | Difference |

18 04 07 | Fight against violence (Daphne) | 17,7 | 20,0 | + 2,35 |

18 05 08 | Prevention, preparedness and consequence management of terrorism | 23,1 | 24,1 | + 1,0 |

18 07 03 | Drugs prevention and information | 3,0 | 4,0 | + 1,0 |

Sub-total | Reinforcements | + 4,35 |

18 01 04 14 | Civil justice — Expenditure on administrative management | 0,3 | 0,25 | - 0,05 |

18 02 11 01 | Agency for the operational management of large-scale IT systems in the area of freedom, security and justice — Contribution to Titles 1 and 2 | 10,3 | 5,15 | - 5,15 |

18 03 05 | European Migration Network | 8,0 | 7,5 | -0,5 |

Sub-total | Reductions | - 5,7 |

Total | - 1,35 |

Payments related to the above-mentioned budget lines remain unchanged with the exception of budget items 18 01 04 14 and 18 02 11 01, for which payment appropriations are decreased by the same amount corresponding to the reduction in commitments.

3.2.5 Heading 3b — Citizenship

Commitment appropriations are set at the level proposed in the original draft budget, with some increases, reflecting the European Parliament's priorities with regard to Youth and communication:

EUR million

Budget line | Heading | Reinforcements / reductions of commitment appropriations |

Original draft budget 2011 | New draft budget 2011 | Difference |

15 05 06 | Special annual events | p.m. | 4,0 | + 4,0 |

15 05 55 | Youth in Action | 126,1 | 129,1 | + 3,0 |

16 03 01 | Information outlets | 12,6 | 13,58 | + 0,98 |

Sub-total | Reinforcements | + 7,98 |

Total | + 7,98 |

The corresponding additional payment appropriations are set at 50 % of the reinforcements in commitments, with the exception of budget article 15 05 06 for which payments are set at the same level as commitments.

3.2.6 Heading 4 — EU as a Global Player

The Commission is proposing some targeted reinforcements reflecting the priorities of the Budgetary Authority. The most significant change relates to Palestine for which an additional amount of EUR 100 million is proposed. These adjustments lead to a situation where the level of commitment appropriations exceeds the ceiling of the multi-annual financial framework, and so the Commission proposes to mobilise the Flexibility Instrument for an amount of EUR 71 million for heading 4 to cover additional needs for Palestine.

Without prejudice to the application of the general methodology mentioned under section 3.1 above, payment appropriations for Palestine are also increased by EUR 100 million while for the other lines for which commitments are increased, payments are maintained at the level of the original draft budget. The Commission also proposes to limit the payments for the Emergency Aid Reserve (EAR) to EUR 100 million, in line with the emerging compromise in the Conciliation Committee.

EUR million

Budget line | Heading | Reinforcements / reductions of commitment appropriations |

Original draft budget 2011 | new draft budget 2011 | Difference |

14 03 04 | Good governance in the tax area | p.m. | 1,0 | + 1,0 |

15 02 27 02 | European Training Foundation — Contribution to Title 3 | 5,5 | 6,0 | + 0,5 |

19 04 03 | Electoral observation | 34,1 | 38,0 | + 3,9 |

19 08 01 02 | European Neighbourhood and Partnership financial assistance to Palestine, the peace process and UNRWA | 200,0 | 300,0 | + 100,0 |

19 08 01 03 | European Neighbourhood and Partnership financial cooperation with Eastern Europe | 555,4 | 556,4 | + 1,0 |

19 09 01 | Cooperation with developing countries in Latin America | 362,8 | 377,8 | + 14,5 |

19 10 01 01 | Cooperation with developing countries in Asia | 528,8 | 543,8 | + 15,0 |

21 02 01 | Food security | 241,8 | 243,8 | + 2,0 |

21 03 01 | Non-State actors in development | 192,7 | 193,7 | + 1,0 |

21 05 01 01 | Health | 30,6 | 32,6 | + 2,0 |

22 02 07 03 | Financial support for encouraging the economic development of the Turkish Cypriot Community | 25,0 | 28,0 | + 3,0 |

23 03 06 | Civil protection interventions in third countries | 4,0 | 9,0 | + 5,0 |

Sub-total | Reinforcements | + 148,9 |

01 03 02 | Macroeconomic assistance | 114,9 | 104,9 | - 10,0 |

19 11 03 | The European Union in the world | 5,0 | 4,0 | - 1,0 |

Sub-total | Reductions | - 11,0 |

Total | + 137,9 |

3.2.7 Heading 5 — Administration

The proposed new draft budget excludes the appropriations related to the outstanding 2009 salary adjustment (1,85 %) for all institutions, pending the adoption of the new Council decision following the judgment of the Court of Justice on 24 November 2010 in favour of the Commission. A draft amending budget will be presented in 2011. In the meantime, a sufficient margin shall be left unused under the ceiling of heading 5. The draft compromise in the Conciliation included a draft joint statement with a commitment by both arms of the budgetary authority for a swift adoption of an amending budget in case the Court ruled in favour of the corresponding salary increase. The Commission regards the adoption of this statement as an indispensable part of a final agreement on budget 2011.

In addition, appropriations for salaries and pension have been revised downwards for all institutions in relation to the 2010 salary adjustment, reflecting the most recent estimates of a maximum of 0,7 %.

For the Commission, the new draft budget is based on the position following amending letter 1/2011 (European External Action Service), with the exception of budget lines xx 01 02 11 02 (Conferences and Meetings) and xx 01 02 11 03 (Committees), where, in the spirit of compromise, the appropriations are set at the lower level jointly agreed by both arms of the Budgetary Authority in their respective readings.

For the institutions other than the Commission, after taking into account the salary-related corrections, the new draft budget reflects the reading of the European Parliament, except for the Council, where it is the Council's own position that is followed following amending letter 1/2011 (European External Action Service).

Regarding the institutions other than the European Parliament, the Council and the Commission, the additional posts compared to 2010 are as follows: Court of Justice of the European Union (+29), European Economic and Social Committee (+11), Committee of the Regions (+18), European Ombudsman (+1), and European Data Protection Supervisor (+2).

3.3. Horizontal Issues

3.3.1 Decentralised agencies

The EU contribution (in both commitment and payment appropriations) and the number of posts for decentralised agencies are set at the level proposed by the Commission in the original draft budget, as modified by amending letter 2/2011, with the following exceptions:

- For budget item 15 02 27 02 European Training Foundation – Contribution to Title 3 under heading 4, a reinforcement of EUR 0,5 million in both commitments and payments is proposed.

- For budget item 11 08 05 02 Community Fisheries Control Agency – Contribution to Title 3 under heading 2 a reinforcement of EUR 4 million in commitments is proposed.

Compared to the original draft budget and as agreed jointly by both arms of the budgetary authority in their respective reading of the original draft budget:

- There is one additional post less for Eurojust,

- The appropriations for the Agency for the operational management of large-scale IT systems in the area of freedom, security and justice are cut by half.

3.3.2 Executive agencies

The EU contribution (in both commitment and payment appropriations), and the number of posts for executive agencies are set at the level proposed in the June draft budget.

3.3.3 Pilot Projects and Preparatory Actions

A comprehensive package of 46 pilot projects and preparatory actions (PP/PA) for a total amount of EUR 72,7 million in commitment appropriations is proposed in the new draft budget. This includes all the PP/PA proposed by the European Parliament, the Council and the Commission.

When a pilot project or a preparatory action appears to be covered by an existing legal basis, the Commission may implement the action concerned under the relevant legal basis and propose the transfer of appropriations to the corresponding budget line in the course of the year.

Payment appropriations for all new pilot projects and preparatory actions are set at a maximum of 50 % of the corresponding commitments; the initial amount proposed is retained if lower than 50 % of commitments. For PP/PA which already exist and are to be extended into 2011, the level of payments is the one defined in the original draft budget.

The new preparatory action on "EU mediation support" is moved to budget item 2 2 3 8 in Section X — European External Action Service.

3.3.4 Budgetary remarks

With the exception of additional remarks for line XX 01 02 11, all textual amendments introduced by the European Parliament or the Council in their respective readings are agreed, on the understanding that they cannot modify or extend the scope of an existing legal base.

3.3.5 New budget lines

The budget nomenclature as proposed by the Commission in its original draft budget and in the three amending letters remains unchanged. In addition new budget lines are proposed to accommodate the package of pilot projects and preparatory actions.

Moreover, the initial nomenclature for CSFP is amended as follows:

- 19 03 01 01 — Monitoring mission in Georgia

- 19 03 01 02 — EULEX Kosovo

- 19 03 01 03 — EUPOL Afghanistan

- 19 03 01 04 — Other crisis management measures and operations.

3. 3.6 Reserves

In full accordance with article 43(1) of the Financial Regulation, reserves are in particularset on lines for which the legal basis is not yet adopted.

4. Concluding Remarks

By proposing a new 2011 draft budget, which integrates the elements of compromise established by the Conciliation Committee, the Commission creates the conditions for a swift adoption of the 2011 budget, without recourse to a further period of conciliation.

A timely adoption and entry into force of the 2011 budget is vital to ensure the proper implementation of policies and programmes of the European Union. The Commission will do its utmost to achieve this goal.

5. 2011 DRAFT BUDGET BY FINANCIAL FRAMEWORK HEADINGS

5.1 2011 draft budget by financial framework headings (aggregate)

Heading | Budget | Financial framework | New draft budget | Difference | Difference |

2010 (1) | 2011 | 2011 | 2011 / 2010 | 2011 – 2010 |

(1) | (2) | (3) | (3 / 1) | (3 – 1) |

EUR | EUR | EUR | % | EUR |

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5.2 2011 draft budget by financial framework headings (detailed)

Heading | Budget | Financial framework | New draft budget | Difference | Difference |

2010 (1) | 2011 | 2011 | 2011 / 2010 | 2011 – 2010 |

(1) | (2) | (3) | (3 / 1) | (3 – 1) |

EUR | EUR | EUR | % | EUR |

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

[2] COM (2010) 300, 15.6.2010

[3] SEC (2010) 1064. 15.9.2010

[4] SEC (2010) 1199. 11.10.2010

[5] COM(2010) 601, 20.10.2010.

[6] COM(2010) 300, 15.6.2010

[7] The margin for heading 1a does not take into account the appropriations related to the European Globalisation Adjustment Fund (EUR 500 million).

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

[9] For calculating the margin under the ceiling for heading 5, account is taken of footnote (1) of the financial framework 2007-2013 for an amount of EUR 82 million for the staff contribution to the pension scheme. The 2011 level of expenditure taken into account for the other institutions is based on the latest available estimates.

[10] SEC(2010) 1064, 15.9.2010.

[11] SEC(2010) 1199, 11.10.2010.

[12] COM(2010) 601, 20.10.2010.