# EUR-Lex - 52012DC0632 - EN

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# 52012DC0632

**DRAFT AMENDING BUDGET N° 6 TO THE GENERAL BUDGET 2012 GENERAL STATEMENT OF REVENUE STATEMENT OF EXPENDITURE BY SECTION Section III – Commission /* COM/2012/0632 final */**

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DRAFT AMENDING BUDGET N° 6
TO THE GENERAL BUDGET 2012

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 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 general budget of the European Union for the
financial year 2012 adopted on 1 December 2011[2],

–
the amending budget No 1/2012[3] adopted on 20 April 2012,

–
the amending budget No 2/2012[4], adopted on 12 June 2012,

–
the amending budget No 3/2012[5], adopted on 5 July 2012,

–
the draft amending budget No 4/2012[6], adopted on 20 June 2012,

–
the draft amending budget No 5/2012[7], adopted on 19 September 2012,

The European
Commission hereby presents to the budgetary authority the Draft Amending Budget
No 6 to the 2012 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.. 5

2.      Revenue. 5

2.1.        Revision of Own
Resources. 5

2.2.        Other Revenue. 6

3.      Reinforcement of Payment Appropriations.. 6

3.1.        Heading 1a
Competiveness for Growth and Employment.. 7

3.2.        Heading 1b
Cohesion for Growth and Employment.. 10

3.3.        Heading 2
Preservation and Management of Natural Resources. 12

3.4.        Heading 3a
Freedom, Security and Justice. 13

3.5.        Heading 4 EU as
a Global Player.. 14

4.      Reductions in Commitment and Payment Appropriations.. 15

5.      Summary table by heading of the Financial Framework.. 18

1.           Introduction

Draft Amending Budget
(DAB) No 6 for the year 2012 concerns the following:

–
the usual update in the forecast of revenue
after the latest revision of the forecasts of own resources and other revenue;

–
an increase of payment appropriations of nearly EUR 9,0 billion
across headings 1a, 1b, 2, 3a and 4 of the multi-annual financial framework,
with the aim of meeting outstanding needs to the end of the year, so that
commitments can be honoured, financial penalties avoided, and beneficiaries can
receive the funds envisaged by the agreed EU policies, for which the
commitments were authorised in previous annual budgets. The Commission has
identified some sources of redeployment for a total of EUR 47,4 million;

–
a reduction in the level of commitment
appropriations in the budget of EUR 133,4 million, to take account of
the latest state of implementation and revised assessments of real needs to the
year end.

Variations
in own resources, together with a significant increase in the revenue from
fines and interest payment of EUR 3 525 million, lead to a total
net increase in revenue of EUR 3 080,8 million, which will
lessen the effect of the DAB 6 on Member States' GNI-based contributions.

The total amount of
payment appropriations requested is EUR 138 752,8 million,
corresponding to 1,08 % of the European Union's GNI. This leaves a margin
of EUR 3 451,4 million under the 2012 ceiling for payments of
the multi-annual financial framework (MFF).

2.           Revenue

2.1.        Revision of Own Resources

In accordance with Article
16 of Council Regulation (EC, Euratom) No 1150/2000 of 22 May 2000[8], the Commission has revised the forecasts for own resources. This
refers in particular to VAT (value added tax) and GNI (gross national income)
balances and to traditional own resources (TOR).

As far as the VAT and GNI
own resources balances of previous years are concerned, and on the basis of the
available information, the Commission proposes to enter an amount of EUR 497,3 million.
This increase relates to chapters 31[9] and 32[10] of the revenue side of the budget.

At this stage the
calculations for Member States' balances are still provisional because of the
on-going verification of VAT and GNI data. This may lead the Commission to
revise the figures in the course of the procedure for this DAB.

The Commission also
proposes to decrease TOR by EUR 950 million in chapter 12[11] of revenue to reflect the trend in custom duties made available to
the budget up to now. If new data for the last quarter of the year implies
significant changes to this estimation, the Commission will revise its figures
in the course of the budgetary procedure.

2.2.        Other Revenue

Taking into account the amounts that at this stage of the year are
cashed or will probably be cashed, it is proposed to increase the initial
forecasts by a net amount of EUR 3 533,5 million. The detail by
line is shown in the table below.

Revenue lines || Budget 2012 || DAB 6/2012 || New amount

5 2 0 0 — Revenue from investments or loans granted, bank and other interest on the institutins'accounts || 6 500 000 || 3 500 000 || 10 000 000

5 2 1 0 — Revenue from investments or loans granted, bank and other interest on the accounts of organisations receiving subsidies transferred to the Commission || 10 000 000 || 5 000 000 || 15 000 000

Sub-total 3⁄4 Revenue from investments or loans granted, bank and other interest || 16 500 000 || 8 500 000 || 25 000 000

7 0 0 0 — Interest due on late payments into the accounts held with the treasuries of the Member States || 5 000 000 || 155 000 000 || 160 000 000

7 0 1 — Interest on late payments and other interest on fines || 15 000 000 || 265 000 000 || 280 000 000

7 1 0 — Fines, periodic penalty payments and other penalties || 100 000 000 || 3 075 000 000 || 3 175 000 000

7 1 2 — Penalty payments and lump sums imposed on a Member State for not complying with a judgment of the Court of Justice of the European Union on its failure to fulfil an obligation under the Treaty || p.m. || 30 000 000 || 30 000 000

Sub-total 3⁄4 Interest on late payment and fines || 120 000 000 || 3 525 000 000 || 3 645 000 000

Total || 136 500 000 || 3 533 500 000 || 3 670 000 000

3.           Reinforcement
of Payment Appropriations

In
September, all Commission services were asked to update their forecasts of
needs until the end of 2012, and submit their requests to adjust payment
appropriations. The revised elements form the basis of the so-called Global
Transfer (DEC 30/2012), aimed at adjusting authorised payment
appropriations across budget lines, according to the latest updated needs.

In preparing the Global
Transfer for 2012, the Commission sought to match increased needs for payment
appropriations on some budget lines, with amounts on other lines which would
otherwise remain unused, with a view to achieving full implementation. The proposal
concerns an amount of EUR 419,7 million, corresponding to some 0,3 %
of the total authorised payments in the 2012 budget. In total, 110 budget lines
are concerned (65 for reinforcement and 45 for reductions).

The corresponding value of
the Global Transfer in 2011 was EUR 719,2 million, and in 2010 it was
EUR 1 792 million. The relatively low amount this year reflects
the very tight situation for payments in the 2012 budget, with only EUR 419,7 million
available for redeployment, and so it has only been possible to meet part of
the requests for reinforcement, within the limits of this amount. As already
forecast and signalled during the course of the year, these are simply too
great to be accommodated through redeployment within the appropriations
available in the 2012 budget. Therefore recourse must be made to an amending
budget.

The request should also be
seen in the context of an adopted budget for 2012 which set the level of
payment appropriations EUR 3,6 billion below the Commission's Draft
Budget proposal, creating a very tight situation for payments from the
beginning of the year.

The
Commission is therefore obliged to have recourse to the joint statement agreed
during the conciliation on the 2012 budget, and which was part of the joint
conclusions of 19 November 2011. In this statement the Council and the European
Parliament asked the Commission "to request additional payment
appropriations in an amending budget if the appropriations entered in the 2012
budget are insufficient to cover expenditure". 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."

3.1.        Heading
1a Competiveness for Growth and Employment

The total request for increase
in heading 1a is EUR 625,3 million, across eleven budget lines, as
follows:

Budget Line || Heading || Payments (EUR)

02 04 01 01 || Space Research || 43 000 000

02 04 01 02 || Security Research || 35 000 000

02 05 01 || European satellite navigation programmes (EGNOS and Galileo) || 4 850 000

04 05 01 || European Globalisation Adjustment Fund (EGF) || 17 657 535

08 02 01 || Cooperation — Health || 79 790 000

08 04 01 || Cooperation — Nanosciences, nanotechnologies, materials and new production technologies || 63 906 000

08 06 01 || Cooperation — Environment (including climate change) || 39 113 000

08 10 01 || Ideas || 30 000 000

09 04 01 01 || Support for research cooperation in the area of information and communication technologies (ICTs) || 30 000 000

15 02 22 || Lifelong Learning Programme || 180 000 000

15 07 77 || People || 102 000 000

Total || 625 316 535

02 04 01 01 — Space
Research (+ EUR 43 million)

The implementation of
payment appropriations on this budget item stood at 94,6 % at mid-October
2012. The reinforcement is needed to cover outstanding commitments as follows:

–
Interim and final payments requested by
beneficiaries, based on the grant agreements already signed following the calls
for proposals of 2007, 2008, 2009 and 2010. These are contractual and legal
obligations (part of the RAL);

–
Pre-financing payments on the RAL of grant
agreements already signed (7 projects) under the call for proposals
FP7-SPACE-2011-1. The deadline to sign all the grant agreements of this call is
before the end of 2012;

–
Pre-financing payments on the new grant agreements
to be signed under the call for proposals FP7-SPACE-2012-1. The "time to
grant" should be reached before the end of 2012 (representing 42 projects).

02 04 01 02 — Security
Research (+ EUR 35 million)

The implementation of
payment appropriations on this budget item stood at 100 % at mid-October.
The reinforcement is needed to cover outstanding commitments as follows:

–
Interim and final payments requested by
beneficiaries, based on the grant agreements already signed following the calls
for proposals of 2007, 2008, 2009 and 2010. These are contractual and legal
obligations (part of the outstanding commitments or "RAL");

–
Pre-financing payments on the RAL of grant
agreements already signed (33 projects) under the call for proposals
FP7-SEC-2011-1. The deadline to sign all the grant agreements of this call is
before the end of 2012;

–
Pre-financing payments on the new grant agreements
to be signed under the call for proposals FP7-SEC-2012-1. The "time to
grant" should be reached before the end of 2012 (representing 7 projects).

02 05 01 — European
satellite navigation programmes (EGNOS and Galileo) (+ EUR 4,9 million)

The request for
reinforcement amounts to EUR 4,9 million, to enable the Commission to
fulfil its contractual obligations (payment of outstanding commitments) under
the Delegation Agreement signed with the European Space Agency (ESA). An amount
of EUR 17,2 million has already been requested in the Global Transfer.

The payment allocations
will be used to meet the second yearly payment contracted with ESA and to
finance the additional procurements already launched in 2011 (8 additional
satellites + Ariane 5 adaptation + fees). These are legal obligations.

04 05 01 — European
Globalisation Adjustment Fund (EGF) (+ EUR 17,7 million)

The payment
appropriations of EUR 50 million voted on the EGF line in the 2012
budget are now exhausted. The reinforcement is needed to cover the payments for
five cases for which the proposal to mobilise the EGF will be presented by end
October/early November. The cases concerned cover applications from Denmark, Spain, Italy, Austria, Romania and Finland.

08 02 01 — Cooperation
— Health (+ EUR 79,8 million)

Implementation of payments
on this line had reached 97,1 % at mid-October. The reinforcement is
needed to cover interim and final payments related to previous calls for
proposals (FP-7-Health-2007/2008/2009/2010), for an amount of EUR 9,8 million.
This will cover payments to 40 projects and avoid or minimise payment of late
interest.

A further
EUR 70 million is related to the call for proposal FP-7
Health-2012-Innovation-1 2012. This call was launched in July 2011, with
deadlines for submissions of 4 October 2011 and 8 February 2012 (for the 2-stage
procedure). The pre-financing to the selected projects is now due to avoid any
delay in the implementation of these research projects.

08 04 01 — Cooperation
— Nanosciences, nanotechnologies, materials and new production technologies
(+ EUR 63,9 million)

The implementation of this
line at mid-October amounted to 83,4 %. The requested reinforcement will
cover the needs for interim and final payments related to previous calls for
proposals between 2009 and 2011. Some 35 grant agreements will benefit,
avoiding or minimising payment of late interest.

Pre-financing payments
related to calls for proposals 2012 (FP7-NMP-2012-LARGE, FP7-NMP-2012-SMALL and
FP7-NMP-2012-SME) are also due, to avoid any delay in the implementation of
these research projects.

08 06 01 — Cooperation
— Environment (including climate change) (+ EUR 39,1 million)

This adjustment concerns
the pre-financing payments related to the calls for proposals 2012 and more
specifically the FP7-ENV-2012-Two Stage Calls. The timing of evaluation and
negotiations was adapted in order to meet the new targets adopted in 2012 (260
days from Call closure date to the signature of 75 % of grant agreements).
Accordingly, at least 75 % of the grant agreements negotiated should be
signed by end of October and 95-100 % by the end of the year. According to
the Financial Regulation, the pre-financing payments should be made within 45
days following the signature of the grant agreements.

The additional
EUR 39,1 million is needed in order to make the pre-financing
payments of approximately 15 grant agreements (out of 43 currently negotiated
for this Call). This reinforcement is also essential in order to avoid any
delay in the implementation of these research projects.

08 10 01 — Ideas
(+ EUR 30 million)

The requested
reinforcement concerns pre-financing payments related to calls for proposals
2012 (Advanced and Starting Grants 2012). The timing of evaluation/negotiation
of these calls has been advanced. Around 35-40 pre-financing payments are to be
made with these additional appropriations. This reinforcement will also avoid
any delay in the implementation of these research projects.

09 04 01 01 — Support
for research cooperation in the area of information and communication
technologies (ICTs) (+ EUR 30 million)

The current progress in
negotiations for FP7 ICT Cooperation projects selected in response to Call 8
requires carrying out more pre-financing payments than originally expected for
projects scheduled to start between September and December 2012. In particular,
it is expected to process 231 pre-financing payments related to 2012 calls
before the year-end. In addition, 235 cost claims related to projects selected
in previous calls will have to be paid before the end of the year. The additional
EUR 30 million requested are the strict minimum to fulfil the
obligations vis-à-vis third parties. The rate of implementation at mid-October
(70,0 %) must be seen in the context of accelerating payments as the year
progresses, and the payments remaining on the line will be exhausted by early
December.

15 02 22 — Lifelong
Learning Programme (+ EUR 180 million)

The available budget for
the Lifelong Learning programme cannot cover the needs in payment
appropriations until the year-end. As mid-October implementation of payments
has already reached 99,4 %. It is currently impossible to proceed with the
intermediate payments (EUR 160,7 million) which are due according to
the contractual provisions of the agreements with the national agencies. A
further EUR 19,3 million is needed to cover pre-financing,
intermediate and final payments of individual projects managed by the Education,
Audiovisual and Culture Executive Agency (EACEA).

15 07 77 — People
(+ EUR 102 million)

The reinforcement will
allow the Research Executive Agency (REA) to cover the payments to be made
before the end of 2012. Implementation had reached 84,9 % at mid-October.

More than 70 % of the
amount requested concerns payments against the outstanding commitments made
before 2012 (RAL). The rest will cover the pre-financing payments on the new
grant agreements to be signed under the 2012 calls for proposals and which have
a time to grant target to be reached before the end of 2012.

3.2.        Heading
1b Cohesion for Growth and Employment

The total request for
increase in heading 1b is EUR 7 170,5 million, across fourteen
budget lines, as follows:

Budget Line || Heading || Payments (EUR)

04 02 01 || Completion of the European Social Fund (ESF) — Objective 1 (2000 to 2006) || 189 000 000

04 02 02 || Completion of the special programme for peace and reconciliation in Northern Ireland and the border counties of Ireland (2000 to 2006) || 9 000 000

04 02 04 || Completion of the European Social Fund (ESF) — Objective 2 (2000 to 2006) || 2 000 000

04 02 17 || European Social Fund (ESF) — Convergence || 1 837 000 000

04 02 19 || European Social Fund (ESF) — Regional competitiveness and employment || 1 060 000 000

04 02 20 || European Social Fund (ESF) — Operational technical assistance (2007 to 2013) || 3 500 000

13 03 01 || Completion of European Regional Development Fund (ERDF) — Objective 1 (2000 to 2006) || 790 000 000

13 03 04 || Completion of European Regional Development Fund (ERDF) — Objective 2 (2000 to 2006) || 80 000 000

13 03 13 || Completion of Interreg III Community initiative (2000 to 2006) || 50 000 000

13 03 16 || European Regional Development Fund (ERDF) — Convergence || 1 400 000 000

13 03 19 || European Regional Development Fund (ERDF) — European territorial cooperation || 400 000 000

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

13 04 02 || Cohesion Fund || 1 100 000 000

Total || 7 170 500 000

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, but the
corresponding appropriations on the various budget lines concerned are either
fully exhausted or will be exhausted soon. Therefore it is necessary to reinforce
payment appropriations in Budget 2012 as the corresponding appropriations have
not been budgeted in the Draft Budget 2013.

Regarding the new
programmes 2007-2013, payment applications received from Member States on 15
October are higher than the level of payment applications received last year at
the same time. Furthermore, the Commission had also to charge on Budget 2012,
payment applications from last year that could have been paid in 2011 if the
appropriations had been available. As the available appropriations are only
slightly higher than last year, reinforcing payment appropriations is necessary
to meet the legal obligations and to avoid an excessive amount of unpaid
payment applications at the end of the year that might not be properly managed
in 2013.

04 02 01 — Completion
of the European Social Fund (ESF) — Objective 1 (2000 to 2006)
(+ EUR 189 million)

Already at the start of
October the payments on this line were almost fully exhausted
(99,8 % implementation). The additional amount is required to cover
payment needs related to programme closures and represents only uncontested
amounts resulting from a detailed analysis of closure documents.

04 02 02 — Completion
of the special programme for peace and reconciliation in Northern Ireland and
the border counties of Ireland (2000 to 2006) (+ EUR 9 million)

The
additional payment appropriations required on this line are necessary in order
to cover closure payment for the closure of this programme by the end of the
year. No payment appropriations were budgeted on this line in 2012.

04 02 04 — Completion
of the European Social Fund (ESF) — Objective 2 (2000 to 2006) (+ EUR 2 million)

The available
appropriations on this budget line were nearly exhausted mid-October (less than
EUR 2 million left). An additional reinforcement of EUR 2 million
is needed in order to pay the balance for two programmes ready to be closed.

04 02 17 — European
Social Fund (ESF) — Convergence (+ EUR 1 837 million)

The estimate of payment
needs on this line has been revised upwards following the Commission's latest
analysis of implementation concerning the European Social Fund. In mid-October, implementation reached 96,3 % of available appropriations and
additional payment appropriations are required to cover needs before the year
end and full implementation will be reached soon. At the same time last year,
implementation stood at 74 % of the year-end outturn.

04 02 19 — European
Social Fund (ESF) — Regional competitiveness and employment (+ EUR 1 060 million)

The
estimate of payment needs on this line has been revised upwards following the
Commission's latest analysis of implementation concerning the European Social
Fund. Since the beginning of October, the appropriations on this budget line
are fully exhausted, and pending payment claims are blocked awaiting a
reinforcement of this budget line. The pending claims concern 14 Member States,
and in particular Germany and the United Kingdom.

04 02 20 — European
Social Fund (ESF) — Operational technical assistance (2007 to 2013) (+ EUR 3,5 million)

Mid-October implementation
on this line reached 99,6 % of available appropriations. Additional
payment appropriations are required to cover needs up to the end of the year.

13 03 01 — Completion
of European Regional Development Fund (ERDF) — Objective 1 (2000
to 2006) (+ EUR 790 million)

The closure of operational
programmes relating to this budget line has been progressing very rapidly. Mid-October,
implementation reached 95,7 % of available appropriations. The additional
amount is required to cover payment needs related to programme closures and
represents only uncontested amounts resulting from a detailed analysis of
closure documents.

13 03 04 — Completion
of European Regional Development Fund (ERDF) — Objective 2
(+ EUR 80 million)

Mid-October implementation
as a percentage of available appropriations stood at 94,2 %. Closures are
progressing rapidly and the remaining payment appropriations will not be
sufficient to cover outstanding needs relating to the uncontested
amounts resulting from a detailed analysis of closure documents. Additional
payment appropriations are therefore required in order to proceed with these
closure payments.

13 03 13 — Completion
of Interreg III Community initiative (2000 to 2006) (+ EUR 50 million)

Mid
October payment appropriations on this line were completely exhausted. The
additional amount is required to cover payment needs related to programme
closures and represents only uncontested amounts resulting from a detailed
analysis of closure documents.

13 03 16 — European
Regional Development Fund (ERDF) — Convergence (+ EUR 1 400 million)

The
estimate of payment needs on this line has been revised upwards following the
Commission's latest analysis of implementation concerning the European Regional
Development Fund. The results of this analysis indicate that payment claims
that are expected to be received from Member States before the year end
substantially exceed the available appropriations. The higher than expected
payment needs are also due to the fact that some of the payment requests
received in 2011 could only be paid in 2012 (some EUR 4,6 billion for
this line). Mid-October, the implementation of payments on this line stood at 77,5 %,
to be compared with 68,4 % last year at the same time.

13 03 19 — European
Regional Development Fund (ERDF) — European territorial
cooperation (+ EUR 400 million)

In early October implementation
on this line already reached 99,7 % of available appropriations. At the
same time last year implementation stood at 60 % of year-end outturn.
Additional appropriations are required to cover upcoming payment requests from
Member States.

13 04 01 — Cohesion
Fund — Completion of previous projects (prior to 2007) (+ EUR 250 million)

The higher than expected
payment needs are due principally to the fact that the closure of Cohesion Fund
projects has been progressing at a rapid pace this year and forecasts indicate
that this trend is set to continue. Mid-October implementation of payment appropriations
on this line reached 92,9 % of available appropriations (as compared with
only 52 % at the same time last year).

13 04 02 — Cohesion
Fund (+ EUR 1 100 million)

The estimate of payment
needs on this line has been revised upwards following the Commission's latest
analysis of implementation concerning the Cohesion Fund. The results of this
analysis indicate that payment claims that are expected to be received from
Member States substantially exceed the available appropriations. Mid-October
implementation of payment appropriations on this line already reached 76,2 %
which is substantially higher than the level reached at the same time last year
(48 %) and further payment applications are expected.

3.3.        Heading
2 Preservation and Management of Natural Resources

The total request for
increase in heading 2 is EUR 1 169 million, across three budget
lines, as follows:

Budget Line || Heading || Payments (EUR)

05 04 02 01 || Completion of the European Agricultural Guidance and Guarantee Fund, Guidance Section — Objective 1 regions (2000-2006) || 111 000 000

05 04 05 01 || Rural development programmes || 1 041 000 000

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 || 17 000 000

Total || 1 169 000 000

05 04 02 01 — Completion of
the European Agricultural Guidance and Guarantee Fund, Guidance Section –
Objective 1 regions (2000-2006) (+ EUR 111 million)

The available payment
appropriations will be insufficient to make all the closure payments foreseen
in 2012. This is due to the closure of important programmes in 2012, notably
for Spain, Italy and Portugal, which are already at a very advanced stage of
the closure process.

05 04 05 01 — Rural
development programmes (+ EUR 1 041 million)

The final payments to
be made on the 2012 budget under the Rural Development programmes relate to
Member States' third quarter expenditure declarations that are to be
transmitted to the Commission by 10 November at the latest. Revised forecasts, requested
by the Commission from the Member States, and received by the beginning of
September, indicate that payment appropriations for Rural Development
programmes 2007-2013 will be insufficient to cover needs. However, over the
past few years, forecasts have tended to exceed the declaration by a
significant amount (by 11 % in 2011). Therefore, the Commission has taken a
prudent stance and requests additional payment appropriations on the basis of a
reduction of 15 % applied to these revised forecasts. It would imply
expenditure declarations for the third quarter in the same order of magnitude
as last year. The Commission will closely follow the incoming expenditure
declarations for the third quarter and inform the budgetary authority of any
change in the additional needs of payment appropriations.

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 facto — New measures (+ EUR 17 million)

There is an additional
need for payment appropriations to cover outstanding obligations vis-à-vis the
Member States in conformity with the application of animal disease eradication
programmes for the years 2010 and before, but also for the implementation of
the 2011 programmes, which had higher co-financing rates. EUR 17 million
is needed to fully reimburse Member States for pre-financing of the programmes.
However, with respect to commitments, the favourable animal health situation in
2012 has meant that all necessary commitments have already been made so that the
remaining commitment appropriations will not be needed in 2012 (see section 4
below).

3.4.        Heading
3a Freedom, Security and Justice

The total request for
increase in heading 3a is EUR 10 million on one single budget line:

Budget Line || Heading || Payments (EUR)

18 02 09 || European Return Fund || 10 000 000

Total || 10 000 000

18 02 09 — European
Return Fund (+ EUR 10 million)

The payment appropriations
allocated to the European Return Fund for 2012 are not sufficient to pay the
first pre-financings relating to the 2012 annual programmes, in line with the legal
basis, which foresees that a pre-financing of 50 % of the related
commitments is automatically paid upon adoption of the national annual
programmes. A reinforcement of EUR 10 million is therefore requested
to allow the remaining first pre-financings to be paid to the Member States.

3.5.        Heading
4 EU as a Global Player

The
total request for increase in heading 4 is EUR 67,1 million across
four budget lines:

Budget Line || Heading || Payments (EUR)

19 08 01 03 || European Neighbourhood and Partnership financial cooperation with Eastern Europe || 12 000 000

21 05 01 01 || Health || 14 400 000

23 02 01 || Humanitarian aid || 23 687 548

23 02 02 || Food aid || 17 000 000

Total || 67 087 548

19 08 01 03 — European
Neighbourhood and Partnership financial cooperation with Eastern Europe
(+ EUR 12 million)

Following
the mid-year assessment review, the payment needs for 2012 have been revised
and updated, and show an outstanding need of EUR 83 million in
payment appropriations. Most of this will be met through internal redeployment,
but a shortfall of EUR 12 million remains to be covered.

The
implementation of this budget item has been at or close to 100 % in each of
the past three budget years. It is a line on which payments accelerate at the
year-end for two main structural reasons. First, the nature of the Annual
Action Plan process, with a focus on commitments during the first half of any
year. Second, the profile of the large payments in the Eastern Neighbourhood,
which tend to be tranches of budget support and prefinancing payments to the
investment facilities (e.g. the Neighbourhood Investment Facility and the
FEMIP — Euro-Mediterranean Investment and Partnership Facility). This
kind of payment is quite predictable, and usually takes place at the end of the
year.

21 05 01 01 — Health
(+ EUR 14,4 million)

The
implementation of payments on this line reached 100 % in early
October. Of the total need for reinforcement of EUR 29 million,
EUR 14,6 million could be accommodated in the Global Transfer. The
remaining, EUR 14,4 million is now requested in this amending budget.

There
are currently a total of 128 grant contracts and 13 contribution agreements
with international organisations under this budget line. The need of payment
appropriations is higher than initially forecasted, due to payment requests
relating to contracts signed in late 2011 and in early 2012. It should be noted
that:

–
in the selection procedure, the contracts under
the calls for proposals on Non-State Actors' capacity building for access to
HIV-AIDS prevention, treatments and care in ENPI were only signed by end
December 2011 and therefore the first payments on these contracts were delayed
from 2011 to 2012;

–
first payments due on a 2011 contribution
agreement with the United Nations Population Fund (UNFPA) was not fully paid in
2011, leaving a balance to be paid from 2012 appropriations. At the time the
Draft Budget 2012 was submitted (April 2011), the identification of the Annual
Action Programme 2012 was at an early stage, and the full consequences in terms
of payment needs were not definitive;

–
the final payment to the Global Alliance for
Vaccines and Immunisation initially forecasted for 2013 will now take place in
2012 as the project was finalised sooner than foreseen.

23 02 01 — Humanitarian
aid (+ EUR 23,7 million)

The initial budget in payment appropriations on the humanitarian aid
budget line, as approved by the Budgetary Authorities, was
EUR 35 million lower than the amount in commitment appropriations. At
the same time, the necessary payment appropriations for 2012 are close to the
commitments and the most recent RAL (2010/2011) still to be paid stands at
EUR 159 million. Implementation of the payments on this budget line stood
at 99,0 % mid-October.

Additionally,
the humanitarian aid budget line has been reinforced with
EUR 150 million in commitment appropriations to deal with the
humanitarian crises in Sudan, South Sudan, Yemen, Syria, the Horn of Africa and
  Pakistan. The reinforcements have been achieved through the use of the
Emergency Aid Reserve (EAR) and redeployment within heading 4.

The
corresponding reinforcement in payment appropriations were only 58 % of
the amount in commitments, while the Commission makes pre-financing payments of
80 % at the start of the humanitarian operations. The Commission has
therefore specifically mentioned in its transfer requests to the Budgetary
Authorities that supplementary payment appropriations would be requested later
in the year. Out of the total EUR 88 million needed, EUR 64,3 million
have already been requested in the Global Transfer.

23 02 02 — Food aid (+ EUR 17 million)

The
initial budget in payment appropriations on the food aid budget line, as
approved by the Budgetary Authority, was EUR 21 million lower than
the amount in commitment appropriations. At the same time, the necessary
payment appropriations for 2012 are close to the commitments and the most
recent RAL (2010/2011) still to be paid stands at EUR 63 million. By
early October, the implementation of payments on this budget line had reached
100 %.

The
food aid budget line has been reinforced with EUR 90 million in
commitment appropriations to deal with the humanitarian crises in the Sahel, Sudan/South Sudan and the food crisis in the Horn of Africa. The reinforcements have
been achieved through the use of the Emergency Aid Reserve and redeployment
within heading 4. The corresponding reinforcements in payment appropriations were
only 19 % of the amount in commitments, while the Commission makes a
pre-financing payment of 80 % at the start of the humanitarian operations.
The Commission already mentioned in its transfer requests to the Budgetary
Authority that supplementary payment appropriations may be needed later in the
year. Out of the total EUR 51 million needed, EUR 34 million
have already been requested in the Global Transfer.

4.           Reductions in Commitment and Payment Appropriations

The Commission has
identified a number of budget items for which part of the available commitment
appropriations will not be used by the end of the year, and therefore proposes
to reduce the budgeted commitment appropriations accordingly. In some cases, a
corresponding amount of payment appropriations is also available, and is
redeployed within this amending budget. The total reductions concerned amount
to EUR 133,4 million for commitments and EUR 47,4 million
for payments.

The full list, by
heading, is set out below:

Budget Line || Heading || Commitments EUR || Payments EUR || Justification

09 02 04 01 || Body of European Regulators for Electronic Communications (BEREC) — Office — Contribution to Titles 1 and 2 || - 1 102 937 || || On 19 August 2012, BEREC Office's Management Committee approved an amended agency's budget. The proposed decrease in commitment appropriations corresponds to the difference between the EU subsidy to the Agency, authorised in the 2012 budget, and the amended BEREC Office's budget.

26 02 01 || Procedures for awarding and advertising public supply, works and service contracts || - 1 600 000 || || Contrary to the initial forecast, a significant drop in the publications of the institutions and other types of public notices has been observed in the first three quarters of 2012. Moreover, a new production contract with lower prices will come into force in December 2012. All these factors generate a surplus of commitment appropriations.

29 02 03 || Union Statistical Programme 2008 to 2012 || - 5 000 000 || || The draft Regulation on the EU Safety Survey was adopted by the Commission in June 2011 and is now being discussed by the Council and Parliament. According to the Commission's proposal, an EU Safety Survey (SASU) should be carried out by the Member States in 2013. Eurostat had allocated necessary budgetary funds in 2012 to undertake the safety survey immediately after adoption of the Regulation. As it became apparent during the legislative process, more time is needed to allow reaching an agreement at the level of the European legislator, and adoption is envisaged for 2013, one year later than originally planned. An amount of EUR 6 million was originally allocated for this project, from which EUR 5 million will not be used and can thus be reallocated.

Total Heading 1a || - 7 702 937 || 0 ||

05 04 05 02 || EAFRD technical assistance || - 13 000 000 || || The available commitment appropriations are not expected to be completely used, leaving a surplus of EUR 13 million. The under-execution on this line in 2012 has already been taken into account in the Draft Budget 2013.

11 03 01 || International fisheries agreements || - 49 606 || - 76 191 || Some appropriations are not needed after making all necessary commitments linked to the international fisheries agreements in force in 2012 and settling some of the RAL amounts (sectorial support for the Madagascar and Kiribati agreements and the compensation due to the Republic of Guinea for 2010).

11 03 02 || Contributions to international organisations || - 798 015 || || The annual financial contribution to two regional organisations is not due this year because of the delay of the entry into force of the mandate of these organisations. In addition, the exchange rates fluctuations have led to lower expenses.

11 03 04 || European Union financial contribution to the bodies set up by the United Nations Convention on the Law of the Sea, 1982 || - 33 234 || - 22 877 || The annual financial contribution has been lower than initially foreseen.

11 06 11 || European Fisheries Fund (EFF) — Operational technical assistance || - 477 119 || || The contribution to actions undertaken in 2012 is lower than foreseen initially.

11 07 02 || Support for the management of fishery resources (improvement of scientific advice) || - 240 000 || || Appropriation not needed in 2012 because of delays in the finalisation of the framework contract for scientific advice.

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 || - 57 640 000 || || Due to the favourable animal health situation in 2012, all necessary commitments have already been made so that the remaining commitment appropriations will not be needed in 2012.

17 04 03 01 || Emergency fund for veterinary complaints and other animal contaminations which are a risk to public factor — New measures || - 4 400 000 || || Due to the favourable animal health situation in 2012, the requests for contribution from the Emergency Fund will only be half of the provision set up at the start of the year. An increase of EUR 17 million in payments is explained in section 3 above.

17 04 07 01 || Feed and food safety and related activities — New measures || - 3 380 000 || || Fewer actions than initially planned will be financed this year.

Total Heading 2 || - 80 017 976 || - 99 068 ||

09 02 05 || Other measures in the audiovisual and media sector || - 40 741 || || The proposed decrease in commitment appropriations is the result of the cancellation of a procurement procedure for a study on business models for internet content providers (SMART2012/0030) because a similar exercise is carried out by another Commission Service.

Total Heading 3b || - 40 741 || 0 ||

40 02 41 || Differentiated Appropriations — International Fisheries Agreements (Reserve) || - 45 652 520 || - 47 252 520 || A number of agreements currently under negotiation will not be adopted by the end of the year (Morocco, Gabon, Solomon Islands, Guinea-Bissau). Therefore, the appropriations entered into the reserve for this purpose will not be used in 2012.

Total Reserves on financial interventions || - 45 652 520 || - 47 252 520 ||

GRAND TOTAL || - 133 414 172 || - 47 351 588 ||

5.           Summary
table by heading of the Financial Framework

Financial framework Heading/subheading || 2012 Financial framework || Budget 2012 (incl. AB 1-3/2012 and DAB 4-5/2012) || DAB 6/2012 || Budget 2012 (incl. AB 1-3/2012 and DAB 4-6/2012)

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

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

1a. Competitiveness for growth and employment || 14 853 000 000 || || 15 403 000 000 || 11 482 916 106 || - 7 702 937 || 625 316 535 || 15 395 297 063 || 12 108 232 641

Margin || || || - 50 000 000 || || || || - 42 297 063 ||

1b. Cohesion for growth and employment || 52 761 000 000 || || 52 752 576 141 || 43 835 746 321 || || 7 170 500 000 || 52 752 576 141 || 51 006 246 321

Margin || || || 8 423 859 || || || || 8 423 859 ||

Total || 67 614 000 000 || || 68 155 576 141 || 55 318 662 427 || - 7 702 937 || 7 795 816 535 || 68 147 873 204 || 63 114 478 962

Margin[12] || || || - 41 576 141 || || || || - 33 873 204 ||

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

Of which market related expenditure and direct payments || 48 093 000 000 || || 43 969 637 305 || 43 875 978 049 || - 65 420 000 || 17 000 000 || 43 904 217 305 || 43 892 978 049

Total || 60 810 000 000 || || 59 975 774 185 || 57 034 220 262 || - 125 670 494 || 1 121 648 412 || 59 850 103 691 || 58 155 868 674

Margin || || || 834 225 815 || || || || 959 896 309 ||

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

3a. Freedom, Security and Justice || 1 406 000 000 || || 1 367 806 560 || 835 577 878 || || 10 000 000 || 1 367 806 560 || 845 577 878

Margin || || || 38 193 440 || || || || 38 193 440 ||

3b. Citizenship || 699 000 000 || || 1 385 690 821 || 1 336 954 221 || - 40 741 || || 1 385 650 080 || 1 336 954 221

Margin || || || 1 563 220 || || || || 1 603 961 ||

Total || 2 105 000 000 || || 2 753 497 381 || 2 172 532 099 || - 40 741 || 10 000 000 || 2 753 456 640 || 2 182 532 099

Margin[13] || || || 39 756 660 || || || || 39 797 401 ||

4. EU AS A GLOBAL PLAYER || 8 997 000 000 || || 9 405 937 000 || 6 955 083 523 || || 67 087 548 || 9 405 937 000 || 7 022 171 071

Margin[14] || || || - 150 000 000 || || || || - 150 000 000 ||

5. ADMINISTRATION || 8 523 000 000 || || 8 279 641 996 || 8 277 736 996 || || || 8 279 641 996 || 8 277 736 996

Margin[15] || || || 327 358 004 || || || || 327 358 004 ||

TOTAL || 148 049 000 000 || 141 360 000 000 || 148 570 426 703 || 129 758 235 307 || - 133 414 172 || 8 994 552 495 || 148 437 012 531 || 138 752 787 802

Margin || || || 1 209 764 338 || 12 445 957 052 || || || 1 43 178 510 || 3 451 404 557

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

[2]               OJ L 56, 29.2.2012, p. 1.

[3]               OJ L 184, 13.7.2012, p. 1.

[4]               OJ L 214, 10.8.2012, p. 1.

[5]               OJ L 221, 17.8.2012, p. 1.

[6]               COM(2012) 340.

[7]               COM(2012) 536.

[8]               OJ L 130, 31.5.2000, p. 1.

[9]               Balances and adjustment of balances based on VAT for
the previous financial years resulting from application of article 10(4), (5)
and (8) of Regulation (EC, EURATOM) No 1150/2000.

[10]             Balances and adjustment of balances based on gross
national income/product for the previous financial years as a result of the
application of article 10(6) to (8) of Regulation (EC, EURATOM) No 1150/2000.

[11]             Customs duties and other duties referred to in article
2(1)(a) of Decision 2007/436/EC.

[12]             The European Globalisation
adjustment Fund (EGF) is not included in the calculation of the margin under
Heading 1a (EUR 500 million). EUR 50 million above the ceiling is financed by
the mobilisation of the Flexibility Instrument.

[13]             The European Union Solidarity
Fund (EUSF) amount is entered over and above the relevant headings as foreseen
by the IIA of 17 May 2006 (OJ C 139 of 14.6.2006)

[14]             The 2012 margin for heading 4
does not take into account the appropriations related to the Emergency Aid
Reserve (EUR 258,9 million). EUR 150 million above the ceiling is financed by
the mobilisation of the Flexibility Instrument.

[15]             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 84 million for the
staff contributions to the pension scheme.