ANNEX

18.11.2017

FINAL

Budget 2018 — Elements for joint conclusions

These joint conclusions cover the following sections:

1. Budget 2018

2. Budget 2017 — Draft Amending Budget 6/2017

3. Statements

Summary overview

A. Budget 2018 According to the elements for joint conclusions: — The overall level of commitment appropriations in the 2018 budget is set at EUR 160 113,5 million. Overall, this leaves a margin below the MFF ceilings for 2018 of EUR 1 600,3 million in commitment appropriations. — The overall level of payment appropriations in the 2018 budget is set at EUR 144 681,0 million. — The Flexibility Instrument for 2018 is mobilised in commitment appropriations for an amount of EUR 837,2 million for heading 3 Security and Citizenship. — The Global margin for commitments is used at a level of EUR 1 113,7 million for heading 1a Competitiveness for Growth and Jobs and heading 1b Economic, Social and Territorial Cohesion. — The decision (EU) 2017/344 of the European Parliament and of the Council of 14 December 2016 on the mobilisation of the Contingency margin in 2017 (1) will be amended to adjust the offsetting profile to decrease the amount offset in heading 5 Administration in 2018 from EUR 570 million to EUR 318 million and correspondingly introduce offsetting of EUR 252 million for the same heading in 2020. — The 2018 payment appropriations related to the mobilisation of the Flexibility Instrument in 2014, 2016, 2017 and 2018 are estimated by the Commission at EUR 678,3 million. B. Budget 2017 According to the elements for joint conclusions, Draft Amending Budget 6/2017 is accepted as proposed by the Commission.

1. Budget 2018

1.1. ‘Closed’ lines

Unless stated otherwise below in these conclusions, all budget lines not amended by either Council or Parliament, and those for which Parliament accepted Council's amendments during their respective reading, are confirmed.

For the other budget lines, the Conciliation Committee has agreed on the conclusions included in sections 1.2 to 1.7 below.

1.2. Horizontal issues

Decentralised agencies

The EU contribution (in commitment and payment appropriations and the number of posts) for all decentralised agencies are set at the level proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2018 with the exception of:

— Under heading 3: — The European Police Office (EUROPOL, budget article 18 02 04) for which 10 additional posts are allocated and commitment and payment appropriations increased by EUR 3 690 000. — The European Asylum Office (EASO, budget article 18 03 02) for which the commitment and payment appropriations are increased by EUR 5 000 000. — The European Body for the Enhancement of Judicial Cooperation (EUROJUST, budget article 33 03 04) for which 5 additional posts are allocated and commitment and payment appropriations increased by EUR 1 845 000.

— Under heading 1a: — The European GNSS Agency (GSA, budget article 02 05 11) for which 5 additional posts are allocated and commitment and payment appropriations increased by EUR 345 000. — The European Securities and Markets Authority (ESMA, budget article 12 02 06) for which the level of commitment and payment appropriations and the number of posts are reduced at the level of the Draft Budget.

Executive agencies

The EU contribution (in commitment and payment appropriations and the number of posts) for executive agencies are set at the level proposed by the Commission in the Draft Budget 2018, as amended by Amending Letter 1/2018.

Pilot Projects/Preparatory Actions

A comprehensive package of 87 pilot projects/preparatory actions (PP/PA), for a total amount of EUR 100,0 million in commitment appropriations is agreed as proposed by the Parliament in addition to the preparatory action proposed by the Commission in the Draft budget 2018.

When a pilot project or a preparatory action appears to be covered by an existing legal basis, the Commission may propose the transfer of appropriations to the corresponding legal basis in order to facilitate the implementation of the action.

This package fully respects the ceilings for pilot projects and preparatory actions set in the Financial Regulation.

1.3. Expenditure headings of the financial framework — commitment appropriations

After taking into account the above conclusions on ‘closed’ budget lines, agencies and pilot projects and preparatory actions, the Conciliation Committee has agreed on the following:

Heading 1a — Competitiveness for Growth and Jobs

Commitment appropriations are set at the level proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2018 but with the adjustments, agreed by the Conciliation Committee, detailed in the following table:

In EUR Budget line / Programme Name DB 2018 (incl. AL1) Budget 2018 Difference 1.1.11 European satellite navigation systems (EGNOS and Galileo) -4 090 000 02 05 01 Developing and providing global satellite-based radio navigation infrastructures and services (Galileo) by 2020 623 949 000 621 709 000 -2 240 000 02 05 02 Providing satellite-based services improving the performance of GPS to gradually cover the whole European Civil Aviation Conference (ECAC) region by 2020 (EGNOS) 185 000 000 183 150 000 -1 850 000 1.1.13 European Earth Observation Programme (Copernicus) -10 370 000 02 06 01 Delivering operational services relying on space-borne observations and in-situ data (Copernicus) 130 664 000 129 364 000 -1 300 000 02 06 02 Building an autonomous Union’s Earth observation capacity (Copernicus) 507 297 000 498 227 000 -9 070 000 1.1.14 European Solidarity Corps (ESC) -30 000 000 15 05 01 European Solidarity Corps 68 235 652 38 235 652 -30 000 000 1.1.31 Horizon 2020 110 000 000 02 04 02 01 Leadership in space 173 389 945 184 528 490 11 138 545 02 04 02 03 Increasing innovation in small and medium-sized enterprises (SMEs) 36 937 021 43 178 448 6 241 427 06 03 03 01 Achieving a resource-efficient, environmentally-friendly, safe and seamless European transport system 53 986 199 56 835 072 2 848 873 08 02 01 01 Strengthening frontier research in the European Research Council 1 827 122 604 1 842 122 604 15 000 000 08 02 02 01 Leadership in nanotechnologies, advanced materials, laser technology, biotechnology and advanced manufacturing and processing 518 395 125 524 204 453 5 809 328 08 02 03 03 Making the transition to a reliable, sustainable and competitive energy system 330 244 971 336 486 398 6 241 427 08 02 03 04 Achieving a European transport system that is resource-efficient, environmentally friendly, safe and seamless 230 777 055 239 323 675 8 546 620 08 02 03 05 Achieving a resource-efficient and climate change resilient economy and a sustainable supply of raw materials 297 738 618 303 307 891 5 569 273 08 02 08 SME instrument 471 209 870 481 209 870 10 000 000 09 04 02 01 Leadership in information and communications technology 722 055 754 725 189 515 3 133 761 15 03 01 01 Marie Skłodowska-Curie actions — generating, developing and transferring new skills, knowledge and innovation 870 013 019 885 710 765 15 697 746 32 04 03 01 Making the transition to a reliable, sustainable and competitive energy system 300 984 111 320 757 111 19 773 000 1.1.4 Competitiveness of enterprises and small and medium-sized enterprises (COSME) 15 000 000 02 02 02 Improving access to finance for small and medium-sized enterprises (SMEs) in the form of equity and debt 199 554 000 214 554 000 15 000 000 1.1.5 Education, Training and Sport (Erasmus+) 54 000 000 15 02 01 01 Promoting excellence and cooperation in the European education and training area and its relevance to the labour market 1 955 123 300 1 979 123 300 24 000 000 15 02 01 02 Promoting excellence and cooperation in the European youth area and the participation of young people in European democratic life 182 672 916 212 672 916 30 000 000 1.1.7 Customs, Fiscalis and Anti-Fraud -1 365 232 14 02 01 Supporting the functioning and modernisation of the customs union 80 071 000 78 860 555 -1 210 445 14 03 01 Improving the proper functioning of the taxation systems 32 043 000 31 888 213 - 154 787 1.1.81 Connecting Europe Facility (CEF) — Energy -19 773 000 32 02 01 04 Union contribution to Financial Instruments for creating an environment more conducive to private investment for energy projects 19 773 000 0 -19 773 000 1.1. DAG Decentralised agencies -3 965 555 02 05 11 European GNSS Agency 30 993 525 31 338 525 345 000 12 02 06 European Securities and Markets Authority (ESMA) 15 947 170 11 636 615 -4 310 555 1.1. OTH Other actions and programmes -2 346 000 02 03 02 01 Support to standardisation activities performed by CEN, Cenelec and ETSI 18 908 000 18 562 000 - 346 000 26 02 01 Procedures for awarding and advertising public supply, works and service contracts 8 500 000 7 500 000 -1 000 000 29 02 01 Providing quality statistical information, implementing new methods of production of European statistics and strengthening the partnership within the European Statistical System 59 475 000 58 475 000 -1 000 000 1.1. PPPA Pilot projects and preparatory actions 51 650 000 1.1. SPEC Actions financed under the prerogatives of the Commission and specific competences conferred to the Commission -2 900 000 01 02 01 Coordination and surveillance of, and communication on, the economic and monetary union, including the euro 12 000 000 11 500 000 - 500 000 04 03 01 08 Industrial relations and social dialogue 16 438 000 15 038 000 -1 400 000 06 02 05 Support activities to the European transport policy and passenger rights including communication activities 11 821 000 10 821 000 -1 000 000 Total 155 840 213

As a consequence, the agreed level of commitment appropriations is set at EUR 22 001,5 million, with no margin left under the expenditure ceiling of heading 1a of EUR 21 239 million, and the use of the Global Margin for Commitments for an amount of EUR 762,5 million.

Heading 1b — Economic, social and territorial Cohesion

Commitment appropriations are set at the level proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2018 but with the adjustment, agreed by the Conciliation Committee, detailed in the following table:

In EUR Budget line / Programme Name DB 2018 (incl. AL1) Budget 2018 Difference 1.2.5 Youth Employment initiative (specific top-up allocation) 116 666 667 04 02 64 Youth Employment Initiative 233 333 333 350 000 000 116 666 667 1.2. PPPA Pilot projects and preparatory actions 7 700 000 Total 124 366 667

As a consequence, the agreed level of commitment appropriations is set at EUR 55 532,2 million, with no margin left under the expenditure ceiling of heading 1b of EUR 55 181 million, and the use of the Global Margin for Commitments for an amount of EUR 351,2 million.

Heading 2 — Sustainable Growth: Natural Resources

Commitment appropriations are set at the level proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2018 but with the adjustments, agreed by the Conciliation Committee, detailed in the following table:

In EUR Budget line / Programme Name DB 2018 (incl. AL1) Budget 2018 Difference 2.0.10 European Agricultural Guarantee Fund (EAGF) — Market related expenditure and direct payments - 229 900 000 05 03 01 10 Basic payment scheme (BPS) 16 556 000 000 16 326 100 000 - 229 900 000 2.0. PPPA Pilot projects and preparatory actions 15 600 000 Total - 214 300 000

The decrease of commitment appropriations is fully attributed to higher assigned revenue available arising from the EAGF surplus of 31 October 2017 which will cover the full needs of the sector as updated in Amending Letter 1/2018. Among these updated needs, Amending Letter 1/2018 increases the payments for:

— Young farmers by EUR 34 million (budget item 05 03 01 13),

— Agricultural practices beneficial for the climate and environment by EUR 95 million (budget item 05 03 01 11),

— Other measures for pigmeat, poultry, eggs, bee-keeping and other animal products by EUR 60 million (budget item 05 02 15 99)

— National support programmes for the wine sector by EUR 7 million (budget item 05 02 09 08), and

— Storage measures for skimmed-milk powder by EUR 2 million (budget item 05 02 12 02).

As a consequence, the agreed level of commitment appropriations is set at EUR 59 285,3 million, leaving a margin of EUR 981,7 million under the expenditure ceiling of heading 2.

Heading 3 — Security and Citizenship

Commitment appropriations are set at the level proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2018 but with the adjustments, agreed by the Conciliation Committee, detailed in the following table:

In EUR Budget line / Programme Name DB 2018 (incl. AL1) Budget 2018 Difference 3.0.11 Creative Europe 3 500 000 15 04 01 Strengthening the financial capacity of SMEs and small and very small organisations in the European cultural and creative sectors, and fostering policy development and new business models 34 528 000 35 528 000 1 000 000 15 04 02 Culture sub-programme — Supporting cross-border actions and promoting transnational circulation and mobility 68 606 000 71 106 000 2 500 000 3.0.8 Food and feed -6 500 000 17 04 01 Ensuring a higher animal health status and high level of protection of animals in the Union 161 500 000 160 000 000 -1 500 000 17 04 02 Ensuring timely detection of harmful organisms for plants and their eradication 25 000 000 22 000 000 -3 000 000 17 04 03 Ensuring effective, efficient and reliable controls 57 483 000 55 483 000 -2 000 000 3.0. DAG Decentralised agencies 10 535 000 18 02 04 European Union Agency for Law Enforcement Cooperation (Europol) 116 687 271 120 377 271 3 690 000 18 03 02 European Asylum Support Office (EASO) 85 837 067 90 837 067 5 000 000 33 03 04 The European Union’s Judicial Cooperation Unit (Eurojust) 36 506 468 38 351 468 1 845 000 3.0. PPPA Pilot projects and preparatory actions 12 650 000 Total 20 185 000

As a consequence, the agreed level of commitment appropriations is set at EUR 3 493,2 million, with no margin left under the expenditure ceiling of heading 3, and the mobilisation of EUR 837,2 million through the Flexibility Instrument.

Heading 4 — Global Europe

Commitment appropriations are set at the level proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2018, but with the adjustments, agreed by the Conciliation Committee, detailed in the following table:

In EUR Budget line / Programme Name DB 2018 (incl. AL1) Budget 2018 Difference 4.0.1 Instrument for Pre-accession assistance (IPA II) -95 000 000 05 05 04 02 Support to Turkey — Economic, social and territorial development and related progressive alignment with the Union acquis 148 000 000 131 000 000 -17 000 000 22 02 01 01 Support to Albania, Bosnia and Herzegovina, Kosovo (2), Montenegro, Serbia and the former Yugoslav Republic of Macedonia — Political reforms and related progressive alignment with the Union acquis 189 267 000 199 267 000 10 000 000 22 02 03 01 Support to Turkey — Political reforms and related progressive alignment with the Union acquis 217 400 000 167 400 000 -50 000 000 22 02 03 02 Support to Turkey — Economic, social and territorial development and related progressive alignment with the Union acquis 274 384 000 236 384 000 -38 000 000 4.0.2 European Neighbourhood Instrument (ENI) 50 000 000 22 04 01 03 Mediterranean countries — Confidence building, security and the prevention and settlement of conflicts 262 072 675 296 072 675 34 000 000 22 04 01 04 Support to the peace process and financial assistance to Palestine and to the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) 293 379 163 299 379 163 6 000 000 22 04 02 02 Eastern Partnership — Poverty reduction and sustainable development 351 556 726 361 556 726 10 000 000 4.0.3 Development Cooperation Instrument (DCI) 20 000 000 21 02 07 03 Human development 193 374 058 205 874 058 12 500 000 21 02 20 Erasmus+ — Contribution from the development cooperation instrument (DCI) 94 928 673 102 428 673 7 500 000 4.0.4 Partnership instrument for cooperation with third countries (PI) -3 000 000 19 05 01 Cooperation with third countries to advance and promote Union and mutual interests 126 263 000 123 263 000 -3 000 000 4.0. OTH Other actions and programmes -1 083 000 13 07 01 Financial support for encouraging the economic development of the Turkish Cypriot community 32 473 000 34 473 000 2 000 000 21 02 40 Commodities agreements 5 583 000 2 500 000 -3 083 000 4.0. PPPA Pilot projects and preparatory actions 8 900 000 4.0. SPEC Actions financed under the prerogatives of the Commission and specific competences conferred to the Commission 1 000 000 19 06 01 Information outreach on the Union’s external relations 12 000 000 15 000 000 3 000 000 21 08 01 Evaluation of the results of Union aid and follow-up and audit measures 30 676 000 29 176 000 -1 500 000 21 08 02 Coordination and promotion of awareness on development issues 13 036 000 12 536 000 - 500 000 Total -19 183 000

As a consequence, the agreed level of commitment appropriations is set at EUR 9 568,8 million, leaving a margin of EUR 256,2 million under the expenditure ceiling of heading 4.

Heading 5 — Administration

The number of posts in the establishment plans of the Institutions and the appropriations proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2018 are agreed by the Conciliation Committee with the following exceptions:

— The section of the Parliament for which its reading is approved;

— The section of the Council for which its reading is approved;

— The European External Action Service for which EUR 800 000 are allocated to a newly created budget item 2 2 1 4 Strategic Communication Capacity. This is aimed at properly equipping the European External Action Service to cover strategic communication tools, contracting strategic communication expertise, supporting language plurality of strategic communication products and engaging and maintaining a network of counter-disinformation specialists in Member States and neighbouring countries. The budget item 3 0 0 4 Other administrative expenditure is reduced by EUR 800 000 to ensure budget neutrality.

Moreover, the impact in the Budget 2018 of the automatic salary update to be applied from 1 July 2017 is integrated in all sections of the Institutions as follows:

in EUR Parliament -2 796 000 Council - 948 000 Commission (including pensions) -13 179 600 Court of Justice - 868 800 Court of Auditors - 357 000 European Economic & Social Committee - 193 000 Committee of the Regions - 146 000 Ombudsman -24 600 European Data Protection Supervisor -13 459 European External Action Service - 878 400 Total -19 404 859

Finally, additional reductions of EUR 5 million were identified across all Institutions for expenditure related to buildings, as follows:

in EUR Council - 378 623 Commission (including pensions) -3 637 499 Court of Justice - 270 611 Court of Auditors -96 409 European Economic & Social Committee -89 461 Committee of the Regions -63 393 Ombudsman -7 016 European Data Protection Supervisor -9 526 European External Action Service - 447 462 Total -5 000 000

As a consequence, and after taking into account pilot projects and preparatory actions (EUR 3,5 million) proposed under section 1.2 above, the agreed level of commitment appropriations is set at EUR 9 665,5 million, leaving a margin of EUR 362,5 million under the expenditure ceiling of heading 5, after the use of EUR 318,0 million of the margin to offset the mobilisation of the Contingency margin in 2017.

Special instruments: EGF, EAR and EUSF

Commitment appropriations for the European Globalisation Adjustment Fund (EGF) and for the Emergency Aid Reserve (EAR) are set at the level proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2018. The reserve for the European Union Solidarity Fund (EUSF) is suppressed (budget article 40 02 44).

1.4. Payment appropriations

The overall level of payment appropriations in the 2018 Budget is set at the level of the Draft Budget, as amended by Amending Letter 1/2018 with the following adjustments agreed by the Conciliation Committee:

1. First, account is taken of the agreed level of commitment appropriations for non-differentiated expenditure, for which the level of payment appropriations is equal to the level of commitment appropriations. This includes the additional reduction of agricultural expenditure by -EUR 229,9 million. The combined effect is a decrease of -EUR 255,3 million;

2. The payment appropriations for all new pilot projects and preparatory actions proposed by the Parliament are set at 50 % of the corresponding commitment appropriations, or at the level proposed by Parliament if lower. In the case of extension of existing pilot projects and preparatory actions the level of payment appropriations is the one defined in the Draft Budget plus 50 % of the corresponding new commitment appropriations, or at the level proposed by Parliament if lower. The combined effect is an increase of EUR 50,0 million;

3. The adjustments on the following budget lines are agreed as a result of the evolution in commitment appropriations for differentiated expenditure: In EUR Budget line / Programme Name DB 2018 (incl. AL1) Budget 2018 Difference 1.1.14 European Solidarity Corps (ESC) -22 501 000 15 05 01 European Solidarity Corps 51 177 000 28 676 000 -22 501 000 1.1.5 Education, Training and Sport (Erasmus+) 12 000 000 15 02 01 01 Promoting excellence and cooperation in the European education and training area and its relevance to the labour market 1 845 127 000 1 857 127 000 12 000 000 1.1. DAG Decentralised agencies -3 965 555 02 05 11 European GNSS Agency 30 993 525 31 338 525 345 000 12 02 06 European Securities and Markets Authority (ESMA) 15 947 170 11 636 615 -4 310 555 1.1. OTH Other actions and programmes - 900 000 26 02 01 Procedures for awarding and advertising public supply, works and service contracts 8 200 000 7 300 000 - 900 000 3.0. DAG Decentralised agencies 10 535 000 18 02 04 European Union Agency for Law Enforcement Cooperation (Europol) 116 687 271 120 377 271 3 690 000 18 03 02 European Asylum Support Office (EASO) 85 837 067 90 837 067 5 000 000 33 03 04 The European Union’s Judicial Cooperation Unit (Eurojust) 36 506 468 38 351 468 1 845 000 4.0.1 Instrument for Pre-accession assistance (IPA II) -76 300 000 05 05 04 02 Support to Turkey — Economic, social and territorial development and related progressive alignment with the Union acquis 120 000 000 107 200 000 -12 800 000 22 02 01 01 Support to Albania, Bosnia and Herzegovina, Kosovo (3), Montenegro, Serbia and the former Yugoslav Republic of Macedonia — Political reforms and related progressive alignment with the Union acquis 219 000 000 221 500 000 2 500 000 22 02 03 01 Support to Turkey — Political reforms and related progressive alignment with the Union acquis 86 000 000 48 500 000 -37 500 000 22 02 03 02 Support to Turkey — Economic, social and territorial development and related progressive alignment with the Union acquis 291 000 000 262 500 000 -28 500 000 4.0.2 European Neighbourhood Instrument (ENI) 12 500 000 22 04 01 03 Mediterranean countries — Confidence building, security and the prevention and settlement of conflicts 125 000 000 133 500 000 8 500 000 22 04 01 04 Support to the peace process and financial assistance to Palestine and to the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) 260 000 000 261 500 000 1 500 000 22 04 02 02 Eastern Partnership — Poverty reduction and sustainable development 320 000 000 322 500 000 2 500 000 4.0.3 Development Cooperation Instrument (DCI) 16 900 000 21 02 07 03 Human development 170 000 000 179 400 000 9 400 000 21 02 20 Erasmus+ — Contribution from the development cooperation instrument (DCI) 95 995 100 103 495 100 7 500 000 4.0. OTH Other actions and programmes 1 000 000 13 07 01 Financial support for encouraging the economic development of the Turkish Cypriot community 25 000 000 26 000 000 1 000 000 4.0. SPEC Actions financed under the prerogatives of the Commission and specific competences conferred to the Commission 1 500 000 19 06 01 Information outreach on the Union’s external relations 13 700 000 15 200 000 1 500 000 Total -49 231 555

4. Additional reductions in payment appropriations are made on the following budget lines: In EUR Budget line / Programme Name DB 2018 (incl. AL1) Budget 2018 Difference 1.2.12 Transition regions -55 000 000 04 02 61 European Social Fund — Transition regions — Investment for growth and jobs goal 1 345 000 000 1 305 000 000 -40 000 000 13 03 61 European Regional Development Fund (ERDF) — Transition regions — Investment for growth and jobs goal 2 750 463 362 2 735 463 362 -15 000 000 1.2.13 Competitiveness (More developed regions) -90 000 000 04 02 62 European Social Fund — More developed regions — Investment for growth and jobs goal 2 882 000 000 2 847 000 000 -35 000 000 13 03 62 European Regional Development Fund (ERDF) — More developed regions — Investment for growth and jobs goal 3 497 060 077 3 442 060 077 -55 000 000 1.2.2 European territorial cooperation -90 500 000 13 03 64 01 European Regional Development Fund (ERDF) — European territorial cooperation 1 004 701 248 914 201 248 -90 500 000 1.2.31 Technical assistance -4 500 000 13 03 65 01 European Regional Development Fund (ERDF) — Operational technical assistance 72 000 000 69 000 000 -3 000 000 13 03 66 European Regional Development Fund (ERDF) — Innovative actions in the field of sustainable urban development 43 321 859 41 821 859 -1 500 000 Total - 240 000 000

1. The reserve for the European Union Solidarity Fund (budget article 40 02 44) is suppressed (-EUR 88,0 million).

These actions will provide a level of payment appropriations of EUR 144 681,0 million, a reduction of –EUR 582,5 million in comparison with the Draft Budget, as amended by Amending Letter 1/2018.

1.5. Reserve

There are no reserves in addition to those of the Draft Budget, as amended by Amending Letter 1/2018, except for budget item 22 02 03 01 Support to Turkey — Political reforms and related progressive alignment with the Union acquis for which EUR 70 000 000 in commitment appropriations and EUR 35 000 000 in payment appropriations are placed in reserve pending the fulfilment of the following condition:

‘Amount to be released when Turkey makes measurable sufficient improvements in the fields of rule of law, democracy, human rights and press freedom, according to the annual report of the Commission.’

The budget remark of budget item 22 02 03 01 is modified accordingly.

1.6. Budget remarks

Unless otherwise specifically addressed in previous paragraphs, amendments introduced by the European Parliament or the Council to the text of budget remarks are agreed, with the exception of those on budget lines listed in the two following tables:

— Budget lines for which the amendments introduced by the European Parliament are approved with the modification proposed by the Commission in its Executability Letter. Budget line Name 06 02 01 01 Removing bottlenecks, enhancing rail interoperability, bridging missing links and improving cross-border sections 09 05 01 MEDIA Sub-programme — Operating transnationally and internationally and promoting transnational circulation and mobility 18 04 01 01 Europe for citizens — Strengthening remembrance and enhancing capacity for civic participation at the Union level 21 02 07 03 Human development 22 02 03 02 Support for economic, social and territorial development and related progressive alignment with the Union acquis

— Budget lines for which the respective budget remark as proposed in the Draft Budget, as amended by Amending Letter 1/2018 and the EAGF update, are approved. Budget line Name 02 02 01 Promoting entrepreneurship and improving the competitiveness and access to markets of Union enterprises 02 03 04 Internal market governance tools 05 02 08 03 Operational funds for producer organisations 05 03 01 01 Single payment scheme (SPS) 05 03 01 10 Basic payment scheme (BPS) 05 04 60 01 Promoting sustainable rural development, a more territorially and environmentally balanced, climate-friendly and innovative Union agricultural sector 08 02 02 02 Enhancing access to risk finance for investing in research and innovation 09 05 05 Multimedia actions 13 03 61 European Regional Development Fund (ERDF) — Transition regions — Investment for growth and jobs goal 13 03 62 European Regional Development Fund (ERDF) — More developed regions — Investment for growth and jobs goal 13 06 01 Assistance to Member States in the event of a major natural disaster with serious repercussions on living conditions, the natural environment or the economy 18 02 01 02 Prevention and fight against cross-border organised crime and better management of security- related risks and crisis 18 03 01 01 Strengthening and developing the common European asylum system and enhancing solidarity and responsibility-sharing between the Member States 21 04 01 Enhancing the respect for and observance of human rights and fundamental freedoms and supporting democratic reforms 23 02 01 Delivery of rapid, effective and needs-based humanitarian aid and food assistance 33 02 07 European Institute for Gender Equality (EIGE)

This is with the understanding that amendments introduced by the European Parliament or the Council cannot modify or extend the scope of an existing legal base, or impinge on the administrative autonomy of institutions, and that the action can be covered by available resources.

1.7. New budget lines

The budget nomenclature proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2018, is agreed with the inclusion of:

— the new pilot projects and preparatory actions, proposed under section 1.2 above; and

— the new budget item 2 2 1 4 within the section of the European External Action Service, proposed under 1.3 above.

2. Budget 2017

Draft Amending Budget (DAB) 6/2017 is approved as proposed by the Commission.

3. Statements

3.1. Joint statement by the European Parliament, Council and Commission on the payment appropriations

The European Parliament and the Council recall the need to ensure, in the light of implementation, an orderly progression of payments in relation to the appropriations for commitments so as to avoid any abnormal level of unpaid invoices at year-end.

The European Parliament and the Council calls on the Commission to continue monitoring closely and actively the implementation of the 2014-2020 programmes. To that end, they invite the Commission to present in a timely manner, updated figures concerning the state of implementation and estimates regarding payment appropriations requirements in 2018.

The Council and the European Parliament will take any necessary decisions in due time for duly justified needs to prevent the accumulation of an excessive amount of unpaid bills and to ensure that payment claims are duly reimbursed.

3.2. Joint statement by the European Parliament, Council (4) and Commission on the Youth Employment Initiative

The Parliament, the Council and the Commission recall that reducing unemployment and, in particular, youth unemployment, remains a high and shared political priority, and to this end they reaffirm their determination to make the best possible use of budgetary resources available to tackle it, and in particular through the Youth Employment Initiative.

Therefore, they welcome the increase of the amount allocated to this initiative in 2018. However, it is not only essential to provide for an adequate financing in the EU budget, but also to put in place, at the same time, the right procedures to implement them effectively.

In this regard, an effective cooperation between the Parliament, the Council and the Commission is needed to ensure the highest possible impact of the measures adopted.

Therefore, the Council and the European Parliament undertake to consider as a matter of priority the modification in the Common Provisions Regulation required by the adoption of the 2018 budget.

The Commission shall facilitate the swift approval of the changes in the programmes to implement the YEI.

3.3. Unilateral statement by the Commission on the Youth Employment Initiative

Reducing youth unemployment remains a high political priority. The Commission undertakes to monitor closely the implementation trend of the Youth Employment Initiative (YEI). Should the trend of this initiative accelerate and should the absorption capacity allow for an increase, the Commission will propose an increase of the YEI funding through an amending budget to be financed by the Global margin for commitments in accordance with Article 14 of the MFF Regulation.

In that case, the Commission expects the Council and the European Parliament to process rapidly any such draft amending budget.

3.4. Unilateral statement by the Council on the 5 % staff reduction

The Council recalls that the target year for the full implementation of the 5 % reduction of staff was 2017. However, as not all institutions, bodies and agencies have met the reduction target, the Council urges continued efforts in 2018 in order to fulfil the agreement.

It is essential that the 5 % staff reduction target is implemented by all institutions, bodies and agencies, and monitored until it is fully achieved. With that in mind, the Council invites the Commission to continue to assess the outcome of the exercise in order to draw lessons for the future.

(1) OJ L 50, 28.2.2017, p. 57.

(2) This designation is without prejudice to positions on status, and is in line with the United Nations Security Council Resolution 1244(1999) and the International Court of Justice opinion on Kosovo’s declaration of independence.

(3) This designation is without prejudice to positions on status, and is in line with the United Nations Security Council Resolution 1244(1999) and the International Court of Justice opinion on Kosovo’s declaration of independence.

(4) The United Kingdom does not support this statement