EUROPEAN COMMISSION Brussels, 12.10.2021 COM(2021) 642 final 2021/0332(BUD) AMENDING LETTER No 1 TO THE DRAFT GENERAL BUDGET 2022 Pre-financing of the Brexit Adjustment Reserve









Continued humanitarian support to refugees in Turkey and beyond











Updated estimated needs for agricultural expenditure











Other adjustments and technical updates



























































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, –Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the European Union, entered into force on 1 June 2021, –Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union (…), and in particular Article 42 thereof, –the draft general budget of the European Union for the financial year 2022, as adopted by the Commission on 9 July 2021, The European Commission hereby presents to the European Parliament and to the Council Amending Letter No 1 to the draft general budget of the European Union for the financial year 2022, for the reasons set out in the explanatory memorandum. CHANGES TO THE STATEMENT OF REVENUE AND EXPENDITURE BY SECTION The changes to the general statement of expenditure and revenue as well to the statements of revenue and expenditure by section are available on EUR-Lex ( https://eur-lex.europa.eu/budget/www/index-en.htm ). An English version of the changes to this statement is attached for information as a budgetary annex. TABLE OF CONTENTS 1. Introduction 2. Brexit Adjustment Reserve 3. Support to refugees in Turkey 3.1 Making payments in relation to the increased humanitarian aid proposed in 2021 3.2 Reinforcing the Instrument for Pre-Accession Assistance in 2022 4. European Agricultural Guarantee Fund (EAGF) 5. Update of the Sustainable Fisheries Partnership Agreements 6. Digital Europe Programme 7. Update of the IPA III contribution to Erasmus+ 8. Decentralised agencies and European Public Prosecutor’s Office

8.1 European Aviation Safety Agency (EASA) 8.2 Agency for the Cooperation of Energy Regulators (ACER) 8.3 European Insurance and Occupational Pensions Authority (EIOPA) 8.4 European Centre for Disease Prevention and Control (ECDC) 8.5 European Medicines Agency (EMA) 8.6 European Public Prosecutor’s Office (EPPO) 8.7 European Asylum Support Office (EASO) 8.8 Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice (eu-LISA) 9. European Health and Digital Executive Agency 10. Adjustments to the heading 7 “European Public Administration” 10.1 Assignment of the revenues from the UK contribution to staff pension expenditure 10.2 Adaptations to establishment plans 10.2.1 Commission and Council: transfer of tasks related to accident insurance 10.2.2 Breakdown of posts between function groups 10.2.3 Adjustments to the establishment plans of the EEAS and the Commission in the light of the transfer of internal market files in relation to the non-EU Western European states from the EEAS to the Commission 11. Update of revenue 11.1 Update of the forecast of the non-recyclable plastics own resource 11.2 Update of the United Kingdom contribution 11.3 Transfer of net assets of the European Coal and Steel Community 12. Additional modification of budgetary nomenclature and budget remarks

12.1 European Year of Youth 12.2 Changes proposed in DAB 6/2021 12.3 Adjustments following adoption of sectoral legal bases 12.4 Pilot projects and preparatory actions 13. Summary Table by MFF Heading 1.Introduction Amending Letter No 1 (AL 1/2022) to the draft budget for the year 2022 (DB 2022) covers the following elements: ¾introducing the 2022 appropriations for the pre-financing of the Brexit Adjustment Reserve, following the entry into force of the BAR Regulation in October 2021; ¾continued support to refugees from the Syria conflict and beyond and host communities in Turkey, Jordan, Lebanon and other parts of the region within the context of the EU’s overall migration policy; ¾update of the estimated needs, assigned revenue and appropriations for agricultural expenditure. In addition to changing market factors, AL 1/2022 also incorporates the impact of decisions in the agricultural sector since the DB 2022 was adopted in July 2021, as well as other proposals expected to have a significant effect during the budget year; ¾update of the estimated needs for the Sustainable Fisheries Partnership Agreements (SFPAs), taking into account the entry into force of new protocols, in particular with Gabon, Mauritania and Cook Islands; ¾adjustment of the level of payment appropriations following delays in the adoption of the basis act and the work programmes of the Digital Europe Programme; ¾update of the Instrument for Pre-accession Assistance (IPA III) contribution to Erasmus+; ¾adjustments to the level of appropriations and/or staff of some decentralised agencies (EASA, ACER, EIOPA, ECDC, EMA, EASO and eu-LISA) and the EPPO taking into account the latest legislative or political developments on their operations for 2022; ¾adjustments to the grading of staff of the European Health and Digital Executive Agency (HaDEA); ¾adjustments to the heading 7 “European Public Administration”, including the treatment of the UK contribution to the staff pensions as assigned revenue for pension expenditure and some adaptations of establishment plans; ¾update of the revenue side of the budget, in particular as regards the forecast for the own resource based on non-recycled plastic packaging waste, the revised UK contribution and the European Coal and Steel Community contribution; and ¾adjustments to the budgetary nomenclature and the budget remarks in particular following the adoption of draft amending budget No°6/2021. Overall, the net impact of AL 1/2022 on expenditure in the DB 2022 is an increase of EUR 1 243,3 million in commitment appropriations and an increase of EUR 1 231,7 million in payment appropriations, which can be broken down into the following components:

(In EUR million) Programme Commitment appropriations Payment appropriations Brexit Adjustment Reserve 1 298,9 1 298,9 Continued support to Syrian refugees and host communities 71,0 265,0 European Agricultural Guarantee Fund (EAGF) 70,0 70,0 SFPAs 10,9 21,4 Digital Europe Programme -216,0 Updates for decentralised agencies 18,4 18,4 Adjustments under heading 7 -225,9 -225,9 Other adjustments 0 -0,1 Total 1 243,3 1 231,7 More information on each component is provided in the following sections. The relevant budget lines and staff establishment plans are detailed in the budgetary annex, together with the update of the revenue resulting i.a. from the expenditure changes included in this amending letter. 2.Brexit Adjustment Reserve Following the political agreement reached in June 2021, the Brexit Adjustment Reserve Regulation has entered into force at the beginning of October. The Regulation provides for pre-financing payments split across the years 2021-2023, rather than the single pre-financing payment in 2021 originally proposed by the Commission. The corresponding adaptation of the pre-financing in 2021 has already been included in Amending Budget 3/2021 adopted on 15 September 2021, and the Commission proposes to introduce the 2022 instalment of the pre-financing in this amending letter, for an amount of around EUR 1,3 billion (EUR 1,2 billion in 2018 prices). The financial contributions to Member States will be implemented within the framework of shared management in accordance with Article 63 of the Financial Regulation. Budget line Name Commitment appropriations Payment appropriations 30 04 03 Brexit Adjustment Reserve (BAR) 1 298 919 000 1 298 919 000 Total 1 298 919 000 1 298 919 000 3.Support to refugees in Turkey 3.1 Making payments in relation to the increased humanitarian aid proposed in 2021 In Draft Amending Budget (DAB) 5/2021, the Commission proposed to provide continued support to the most vulnerable of the around 3,7 million refugees from the Syria conflict and beyond in Turkey. Concretely, a total amount of EUR 325 million in commitment appropriations is necessary to ensure the continuation of humanitarian support to refugees in Turkey by extending the coverage of the Emergency Social Safety Net (ESSN) support, which is providing monthly cash transfers to over 1,5 million refugees. To make this amount available, the Commission proposed to combine the full unallocated margin under heading 6 “Neighbourhood and the World” in 2021 of EUR 149,6 million with EUR 100,4 million in commitment appropriations under the Humanitarian Aid envelope in 2021, and a further EUR 75 million from the Humanitarian Aid budget line in 2022. As regards payment appropriations, in DAB 5/2021 the Commission announced that the impact of the continued actions on the 2022 payments would be incorporated in the amending letter to the 2022 draft budget. Based on a detailed assessment of payment needs in 2022, the Commission estimates that an amount of EUR 265 million in payment appropriations is necessary in 2022 to cover the additional humanitarian aid actions proposed in 2021, namely the extension of the Emergency Social Safety Net (ESSN) programme. Budget line Name Commitment appropriations Payment appropriations 14 03 01 Humanitarian aid 0 265 000 000 Total 0 265 000 000 3.2 Reinforcing the Instrument for Pre-Accession Assistance in 2022 Continued support for refugees in Turkey remains necessary in 2022. Through this amending letter, the Commission proposes to make partial use of the remaining unallocated margin in heading 6, for an amount of EUR 71 million in commitment appropriations, leaving EUR 33 million in commitment appropriations available for unforeseen needs in 2022. The EUR 71 million in commitment appropriations is requested to reinforce funding for activities for refugees and host communities in Turkey under the Instrument for Pre-accession Assistance. These EUR 71 million will complement the EUR 120 million to be committed from the programmed amounts under IPA in 2022, notably for migration management and border protection, and other socio-economic actions. Budget line Name Commitment appropriations Payment appropriations 15 02 02 01 Preparation for accession 71 000 000 0 Total 71 000 000 0 The Commission estimates that no additional payment appropriations are necessary in 2022 to cover the payment needs for the proposed EUR 71 million in commitment appropriations. 4.European Agricultural Guarantee Fund (EAGF) AL 1/2022 updates estimates for agricultural expenditure based on the most up-to-date economic data and legislative framework. By September 2021, the Commission had at its disposal a first indication of the level of production for 2021 and the outlook for the agricultural markets as well as actual figures for most of the 2021 budget execution as regards EAGF shared management, which are the basis for the updated estimates of the budgetary needs for 2022. Apart from taking into account market factors, AL 1/2022 also incorporates the impact of legislative decisions in the agricultural sector since the DB 2022 was adopted in July 2021, as well as for some that are still under preparation, soon to be adopted. Overall, 2022 EAGF needs (after taking into account EAGF provisions related to 'financial discipline') are now estimated at EUR 40 919,9 million , which is an increase by EUR 70 million compared to the DB 2022. This increase is solely due to additional needs for direct payments.

The DB 2022 already included the effect of the Member States’ notifications of 19 February 2021 on transfers between direct payments and rural development. However, at the time of drawing up the DB 2022, the notifications on the implementation of the various direct payment schemes for calendar year 2021 were still being analysed and hence their effects on the individual schemes for financial year 2022 could not yet be taken into account in the DB 2022. This is now included in the AL 1/2022 estimates. Specifically, the needs for the basic payment scheme and small farmers scheme are slightly higher compared to the DB 2022 and the needs for the single area payment scheme and young farmers scheme are lower. The amount of assigned revenue estimated to be available in 2022 with EUR 551 million remains the same as in DB 2022. In contrast to previous years, AL 1/2022 does not incorporate an expected carry-over of assigned revenue from 2021 to 2022. The EAGF 2021 budget execution is advancing well, particularly for direct payments . The financial discipline applied in the 2021 budget amounted to EUR 883 million, of which EUR 487,6 million to establish the crisis reserve and a further EUR 395,4 million to reduce the amount available for direct payments in order to respect the EAGF net balance. In accordance with Article 12(2)(d) of the Financial Regulation, the 2021 surplus would be carried over to 2022 for reimbursement to the farmers to partly compensate this additional financial discipline cut in 2021. The unused appropriations of EUR 487,6 million of the 2021 agricultural crisis reserve, which will not be called on, will be carried over for reimbursement to farmers subject to the financial discipline in 2022. As a result of these updates, the Commission proposes to increase the expenditure estimates for agriculture by EUR 70 million compared to the DB 2022. Commitment appropriations of EUR 40 368,9 million, which include EUR 497,3 million for the Reserve for crises in the agricultural sector, are required to cover EAGF needs for 2022. This overall amount remains below the EAGF net balance of EUR 40 639 million leaving a margin of EUR 270,1 million. This means that the financial discipline will only be applied to establish the agricultural crisis reserve for budget year 2022. Budget line Name Commitment appropriations Payment appropriations 08 02 05 01 POSEI and smaller Aegean islands (direct payments) 0 0 08 02 05 02 Single area payment scheme (SAPS) -41 000 000 -41 000 000 08 02 05 03 Redistributive payment 3 000 000 3 000 000 08 02 05 04 Basic payment scheme (BPS) 86 000 000 86 000 000 08 02 05 05 Payment for agricultural practices beneficial for the climate and the environment -4 000 000 -4 000 000 08 02 05 06 Payment for farmers in areas with natural constraints 0 0 08 02 05 07 Payment for young farmers -39 000 000 -39 000 000 08 02 05 08 Crop-specific payment for cotton 0 0 08 02 05 09 Voluntary coupled support scheme 5 000 000 5 000 000 08 02 05 10 Small farmers scheme 60 000 000 60 000 000 08 02 05 11 Reserve for crises in the agricultural sector 0 0 08 02 05 12 Reimbursement of direct payments to farmers from appropriations carried-over in relation to financial discipline 0 0 Total 70 000 000 70 000 000 5. Update of the Sustainable Fisheries Partnership Agreements As foreseen in point C of Part II of the Interinstitutional Agreement (IIA) , the Commission has examined the most recent information available concerning Sustainable Fisheries Partnership Agreements (SFPAs) and reviewed the expected needs for 2022 on the basis of the developments in the negotiation processes with the third countries involved. On the basis of this review, the Commission proposes to move commitment appropriations for an amount of EUR 54 million and payment appropriations for an amount of EUR 51 million from the reserve (budget article 30 02 02) to the operational article (08 05 01 Establishing a governance framework for fishing activities carried out by Union fishing vessels in third-country waters). This budgetary-neutral transfer relates to the Fisheries Agreements with Gabon, Mauritania and Cook Islands, for which the agreements have been reached and will enter into provisional application by mid-November. The available commitment appropriations including both the reserve (EUR 58,3 million) and the main operational line (EUR 84,3 million) amount to EUR 142,6 million. Considering the result of the negotiations and the following agreements signed with Cook Islands, Mauritania and Gabon, the final overall needs amount to EUR 153,5 million. Therefore, an additional amount of EUR 10,9 million is necessary to be able to fulfil contractual obligations. As for payment appropriations, including both the reserve (EUR 55,3 million) and the main operational line (EUR 84 million) the available credits amount to EUR 139,3 million. Considering the payment needs of EUR 160,7 million to cover existing protocols and also taking into account the agreements signed with Cook Islands, Mauritania and Gabon, the overall payment needs exceed the available budget by EUR 21,4 million. in EUR Budget line Name Commitment appropriations Payment appropriations 08 05 01 Establishing a governance framework for fishing activities carried out by Union fishing vessels in third country waters 64 925 000 72 425 000 30 02 02 Differentiated appropriations (Reserve for budget article 08 05 01) -54 000 000 -51 000 000 Total 10 925 000 21 425 000 6.Digital Europe Programme Due to delays in the adoption of the work programmes implementing the Digital Europe Programme following the late adoption of the corresponding basis act, several calls for proposals have to be postponed to late 2022. As a consequence, the level of payment appropriations included in the DB 2022 can be decreased by EUR 216 million, as follows: EUR Budget line Name Commitment appropriations Payment appropriations 02 04 01 10 Cybersecurity -5 000 000 02 04 01 11 European Cybersecurity Industrial, Technology and Research Competence Centre -118 000 000 02 04 03 Artificial intelligence -49 000 000 02 04 04 Skills -5 000 000 02 04 05 01 Deployment -39 000 000 Total 0 -216 000 000 7.Update of the IPA III contribution to Erasmus+ An IPA III contribution to Erasmus+ of EUR 3,7 million was originally allocated for support to Bologna activities to be programmed through the IPA Committee comitology, of which EUR 2,2 million in 2022 and EUR 1,5 million in 2025. However, because of the delay in the adoption of the IPA III basis act and the state of play on the negotiations of the international dimension of the Erasmus+ programme, it will not be possible to use the amount of EUR 2,2 million in 2022 as planned for Bologna activities and hence this amount will be reprogrammed for other activities under IPA. These changes affect the DB 2022 as well as the financial programming for the amount planned in 2025. The proposed change to the DB 2022 has the following – overall neutral – impact on the IPA budget lines: Budget line Name Commitment appropriations Payment appropriations 15 02 01 02 Erasmus+ — contribution from IPA III -2 200 000 0 15 02 01 01 Preparation for accession 2 200 000 0 Total 0 0 8.Decentralised agencies and European Public Prosecutor’s Office 8.1 European Aviation Safety Agency (EASA) The ReFuelEU Aviation proposal aims at ensuring a level playing field for sustainable air transport. As part of the proposal, EASA will be required to provide data on the aviation fuel uplift at Union airports to competent national authorities. As of 2025, EASA will also be required to publish technical reports on the compliance of economic operators with the obligations under ReFuelEU Aviation. To enable EASA to carry out these additional tasks, the Commission proposes to add one AD5 post to the number of posts included in the draft budget 2022, and to increase the EU contribution to EASA on the reserve line by EUR 1,8 million in 2022, to be offset by a corresponding reduction from the CEF transport budget article 02 03 01. Budget line Name Commitment appropriations Payment appropriations 02 03 01 Connecting Europe Facility (CEF) — Transport -1 800 000 -1 800 000 30 02 02 Differentiated appropriations (Reserve for budget article 02 10 01) 1 800 000 1 800 000 Total 0 0 The updated establishment plan is set out in the budgetary annex.

8.2 Agency for the Cooperation of Energy Regulators (ACER) In accordance with Article 33 (10) of Regulation (EU) 2019/942 of 5 June 2019, the Commission has carried out an assessment as to whether the financial and human resources available to ACER allow it to fulfil its role under the recast Regulation of working towards an internal energy market and of contributing to energy security to the benefit of consumers in the Union. The assessment was delayed one year due to the impact of the COVID-19 pandemic. The assessment has shown that the agency requires a further 18 establishment plan posts, 1 contract agent and 6 Seconded National Experts to fully implement its tasks over the period 2022-2027, of which 4 establishment plan posts, 1 contract agent and 6 Seconded National Experts in 2022. Out of the 25 additional FTEs needed, 15 will be financed by the fees collected by the agency, while the remaining 10 are financed by the EU contribution. The additional resources will allow the agency to fully implement the tasks mandated to it by already existing EU legislation. The additional staff will be dedicated to improving the legal quality of ACER’s decision, the integration of the European electricity market and REMIT. For each of the years of the period, the additional staff can be financed within the EU contribution to ACER as set out in the financial programming included in the draft budget 2022, taking into account higher fee income. The updated establishment plan is set out in the budgetary annex. 8.3 European Insurance and Occupational Pensions Authority (EIOPA) In the draft budget 2022, EIOPA’s establishment plan for 2022 no longer included an AD 15 post. However, upon his re-appointment for a second five-year term, EIOPA’s Executive Director was reclassified from AD14 to AD15. EIOPA’s establishment plan for 2022 therefore needs to be adjusted accordingly. The updated establishment plan is set out in the budgetary annex. 8.4 European Centre for Disease Prevention and Control (ECDC) In the amending budget 2/2021 and DEC5/2021, the Commission proposed to reinforce the ECDC by a total of EUR 106 million to deal with the genome sequencing issue resulting from COVID-19 pandemic. The Agency has managed to implement the majority of the additional funding, but a surplus of EUR 20 million was returned in draft amending budget 6/2021. EUR 10 million will still be needed in 2022 to continue the COVID-19 actions that were started in 2021. Therefore, the Commission proposes to increase the ECDC budget in 2022 by EUR 10 million. The Commission will review the remaining needs for 2023 in the context of the preparation of the 2023 Draft Budget. Budget line Name Commitment appropriations Payment appropriations 06 10 01 European Centre for Disease Prevention and Control 10 000 000 10 000 000 Total 10 000 000 10 000 000 8.5 European Medicines Agency (EMA) In the Health Union Package of 11 November 2020, the Commission proposed to structurally reinforce the role of EMA in crisis preparedness and management, in particular to ensure that critical shortages of medicinal products and medical devices in a health emergency are avoided across the Union. As part of the proposal, a new IT system to monitor and report on shortages of medicines and medical devices was planned to be developed in 2021. However, the necessary procurement procedure for the IT system has taken more time than originally foreseen, and therefore EUR 17,8 million was returned in draft amending budget 6/2021, of which EUR 14 million is proposed to be made available again in 2022 through this amending letter. The Commission will review the remaining needs for 2023 in the context of the preparation of the 2023 Draft Budget. Budget line Name Commitment appropriations Payment appropriations 06 10 03 01 Union contribution to the European Medicines Agency 14 000 000 14 000 000 Total 14 000 000 14 000 000 8.6 European Public Prosecutor’s Office (EPPO) The EPPO started its operation on 1 June 2021 and the caseload in the first operational months appears to be in line with the EPPO’s initial assessment: the number of backlog and new cases under the EPPO proceedings increases month by month. For this reason, the Commission proposes to adjust the EPPO budget and staff resources by 76 establishment plan posts (of which 62 AD and 14 AST posts), 13 Contract Agents and 29 Seconded National Experts. This reinforcement is proposed for a period of three years (2022-2024) so as to allow EPPO to deal with the backlog of cases in a reasonable timeframe. The Commission will therefore re-assess the staffing situation of the EPPO at the end of 2023, by when the unavoidable backlog from the start of operations should have been overcome, giving a clearer picture of cruising speed case-load of this new body. This analysis will feed the proposed budget and staff for future years. To cover the additional staff costs in 2022 and considering recruitment on average mid-year, the Commission proposes to increase appropriations by EUR 7,5 million as compared to DB 2022. Budget line Name Commitment appropriations Payment appropriations 07 10 08 European Public Prosecutor's Office (EPPO) 7 500 000 7 500 000 Total 7 500 000 7 500 000 The updated establishment plan is set out in the budgetary annex. 8.7 European Asylum Support Office (EASO) The breakdown of posts across the grades of the establishment plan of the European Asylum Support Office (EASO), as transmitted by EASO in the context of the preparation of the draft budget 2022, does not allow for the necessary career development of staff through reclassification. Following a review of the grades carried out with the agency, the Commission proposes to adjust the breakdown of the grades in the establishment plan accordingly. The overall budget and the total number of posts of EASO remains unchanged. The updated establishment plan is set out in the budgetary annex. 8.8 Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice (eu-LISA)

In May 2018, the Commission proposed to assign additional tasks to eu-LISA in relation to the update of the Visa Information System (VIS). The agreement reached in July 2021 on the new Regulation confirms the additional tasks for eu-LISA as proposed by the Commission, but the timing of the political agreement does not leave the agency sufficient time to make good use of the appropriations and staff initially planned for 2021. That is why the Commission proposes to postpone the resources planned in the original financial statement for each of the years of the MFF period by one year, so as to allow for implementation as from 2022. The agency has returned the commitment appropriations budgeted for 2021 (EUR 17,2 million) in budget authority transfer DEC 18/2021, and the appropriations requested for this purpose in the draft budget 2022 can be reduced by EUR 13,1 million through this amending letter. Budget line Name Commitment appropriations Payment appropriations 11 10 02 European Union Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice (‘eu-LISA’) -13 100 000 -13 100 000 Total -13 100 000 -13 100 000 9.European Health and Digital Executive Agency The European Health and Digital Executive Agency (HaDEA) was established as a new executive agency in early 2021. The establishment plan in the draft budget included a projection of seconded officials from the Commission. However, the actually recruited seconded officials will keep their grading in the Commission, and therefore HaDEA’s establishment plan for 2022 needs to be adjusted accordingly, whereas the EU contribution to the agency remains unchanged. The updated establishment plan is set out in the budgetary annex. 10.Adjustments to the heading 7 “European Public Administration” 10.1 Assignment of the revenues from the UK contribution to staff pension expenditure In line with Article 142 of the Agreement on the withdrawal of the United Kingdom from the European Union (‘Withdrawal Agreement’), each year the United Kingdom will pay into the EU budget its share of the staff pension benefits acquired by EU staff until 31 December 2020. The first UK payment related to staff pensions is due in 2022. In the draft budget 2022, this contribution is presented on the revenue side of the budget as part of the general line receiving all contributions by the United Kingdom linked to the Withdrawal Agreement (revenue item 6 6 0 2). Given the direct link between the UK contribution, which is calculated based on individual benefits of retired staff and the annual pension benefits and other employee benefits paid from the EU budget, and the related expenditure, the Commission proposes assigning the UK contribution (amounting to some EUR 225 million in 2022) as assigned revenue directly to the relevant budget line for pension expenditure. The amounts on the budget line can be reduced accordingly. Budget line Name Commitment appropriations Payment appropriations 21 01 01 Pensions and allowances -225 000 000 -225 000 000 Total -225 000 000 -225 000 000 The budgetary remarks are updated accordingly in the budgetary annex. 10.2 Adaptations to establishment plans 10.2.1 Commission and Council: transfer of tasks related to accident insurance In June 2021, it has been agreed to transfer the tasks of management of the Council’s General Secretariat (GSC) accident insurance files from the GSC to PMO. The agreement between the GSC and PMO foresees the transfer of 1 AST post to PMO along with the relating appropriations. The corresponding impact on the European Council and Council’s section of the draft budget 2022 is set out in the table below: Budget line Name Commitment appropriations Payment appropriations Section II - European Council and Council 1 1 0 0 Basic salaries -37 052 -37 052 1 1 0 2 Entitlements under the Staff Regulations related to the personal circumstance of the staff member -13 000 -13 000 1 1 0 3 Social security cover -1 000 -1 000 Total -51 052 -51 052 Section III - Commission 20 03 16 01 O3 01 01 01 Office for the Administration and Payment of Individal Entitlements – Remuneration and allowances 46 000 46 000 Total 46 000 46 000 10.2.2 Breakdown of posts between function groups The Commission has committed to stable staffing under the current MFF. Nevertheless, the important political challenges to be tackled, from the actions to address the COVID-19 pandemic to fighting climate change, increase the need for highly qualified policy officers, with the appropriate profiles in the function group for administrators. Rather than requesting any additional resources to meet these challenges, it is proposed to convert an additional 90 AST6 posts into 90 AD5 posts for 2022. This will lead to budgetary savings of EUR 0,956 million on the central salaries budget line. Budget line Name Commitment appropriations Payment appropriations 20 01 02 01 Remuneration and allowances — Headquarters and Representation offices -955 000 -955 000 20 01 02 02 Expenses and allowances related to recruitment, transfers and termination of service — Headquarters and Representation offices -1 000 -1 000 Total -956 000 -956 000 The updated establishment plans are set out in the budgetary annex.

10.2.3 Adjustments to the establishment plans of the EEAS and the Commission in the light of the transfer of internal market files in relation to the non-EU Western European states from the EEAS to the Commission As agreed in the recent exchanges between the Secretaries General of the Commission and the EEAS, the Commission will take over a number of tasks related to the internal market from the EEAS. The EEAS will hence transfer the corresponding resources (1 AD11, 2 AD10 and 1 AST9 official) to the Commission and reduce its establishment plan and its budget accordingly. For three of the officials the transfer will take place already in 2021, and by 1 January 2022 for the fourth official. The figures are based on the understanding that these four officials, will be paid by the Commission for the whole year 2022 even though they may be seconded during the first six months. The budget transferred includes also certain infrastructure and IT budget items. Budget line Name Commitment appropriations Payment appropriations Section X - European External Action Service 1 1 0 0 Basic salaries -444 000 -444 000 1 1 0 2 Entitlements under the Staff Regulations related to the personal circumstance of the staff member -110 000 -110 000 1 1 0 3 Social security cover -17 000 -17 000 1 4 0 Missions -18 800 -18 800 2 0 1 0 Cleaning and maintenance -9 900 -9 900 2 0 1 1 Water, gas, electricity and heating -3 000 -3 000 2 0 1 2 Security and surveillance of buildings -14 200 -14 200 2 1 0 0 Information and communication technology -26 000 -26 000 Total -642 900 -642 900 Section III - Commission 20 01 02 01 Remuneration and allowances — Headquarters and Representation offices 603 000 603 000 20 01 02 02 Expenses and allowances related to recruitment, transfers and termination of service — Headquarters and Representation offices 1 000 1 000 20 02 06 01 Missions 18 800 18 800 20 03 01 02 Expenditure related to buildings 12 900 12 900 20 03 07 02 Guarding of buildings — Brussels 14 200 14 200 20 04 02 Digital workplace 26 000 26 000 Total 675 900 675 900 11.Update of revenue 11.1 Update of the forecast of the non-recyclable plastics own resource The new Own Resources Decision (Council Decision (EU, Euratom) 2020/2053 of 14 December 2020) was approved by all Member States by 31 May 2021. As a consequence, it entered into force on 1 June 2021. The Own Resources Decision has established a new own resource based on non-recycled plastic packaging waste, which the Commission entered in the 2022 draft budget. Non-recycled plastic packaging waste results from the difference between plastic packaging waste and the recycled quantity thereof. The forecast of plastic packaging waste used by the Commission is based on the following method: the annual growth rates of GNI in constant prices for 2017/2018-2021 according to the latest available Commission economic forecast are applied to the latest outturn data for plastic packaging waste. Member States’ recycling rates are assumed to follow a linear convergence path between the recycling rate based on the latest available outturn data (2017/2018) and the EU recycling target of 50 % to be met by 2025. The increase of recycling rates is capped at 2 percentage points per year to ensure a realistic convergence path. The recycling rate of Member States having already reached or surpassed the target in 2017/2018 is kept constant. Based on this method and including updated forecast bases provided by Luxembourg, Portugal and Romania, the forecast for all Member States was agreed in the 181st meeting of the Advisory Committee on Own Resources (ACOR) on 26 May 2021. In application of Article 15 of the Making Available Regulation for the plastics-based own resource (‘MAR2’), Member States were invited to send to the Commission their updated forecasts on the volume of non-recycled plastic packaging waste by 31 July 2021. The Czech Republic, Germany, Spain, Croatia, Italy, Hungary, Austria and Slovakia sent updated forecasts of non-recycled plastic packaging waste for 2021 and 2022 to the Commission. Belgium, Bulgaria, Poland and Sweden confirmed the forecast bases agreed during the ACOR meeting on 26 May 2021. The remaining Member States did not send updated forecasts of non-recycled plastic packaging waste for 2021 and 2022. In this context and as an exception from the annual ACOR forecasting procedure that takes place once a year in May, the Commission agreed with all Member States in the ACOR meeting of September an updated set of forecasts for 2021 and 2022 for the non-recycled plastics-based own resource only. Compared to the results of the ACOR meeting in May, the updated forecast results in changes for a limited number of Member States, but overall the non-recycled plastic packaging waste own resource will be only EUR 2 million lower due to a slightly lower plastics base (in tons). 2022 - Plastic packaging waste own resource - Impact compared to previous forecast Plastics OR gross contribution Plastics OR lump-sum correction Plastics OR net contribution (May ACOR/ DAB4) Plastics OR net contribution (Sept. ACOR) Difference in plastics OR contribution GNI contribution (May ACOR/ DAB4) GNI contribution (Sept. ACOR) Difference in GNI contribution due to revised plastics OR forecast Total difference (plastics OR + GNI contribution) May ACOR Sept. ACOR Δ %Δ BE 153 153 0 0.0% 0 153 153 0 3 864 3 864 0.08 0.1 BG 46 46 0 0.0% 22 24 24 0 517 517 0.01 0.0 CZ 95 88 -8 -8.1% 32 63 55 -8 1 783 1 783 0.04 -7.6 DK 124 124 0 0.0% 0 124 124 0 2 677 2 677 0.05 0.1 DE 1 365 1 392 26 1.9% 0 1 365 1 392 26 28 780 28 781 0.57 27.0 EE 27 27 0 0.0% 4 23 23 0 230 230 0.00 0.0 IE 150 150 0 0.0% 0 150 150 0 2 389 2 389 0.05 0.0 EL 84 84 0 0.0% 33 51 51 0 1 406 1 406 0.03 0.0 ES 671 663 -6 -0.9% 142 529 521 -8 9 962 9 962 0.20 -7.8 FR 1 258 1 258 0 0.0% 0 1 258 1 258 0 19 834 19 834 0.40 0.4 HR 30 31 2 5.5% 13 17 18 2 436 436 0.01 1.6 IT 955 945 -10 -1.1% 184 771 761 -10 14 172 14 172 0.28 -9.9 CY 7 7 0 0.0% 3 4 4 0 171 171 0.00 0.0 LV 21 21 0 0.0% 6 15 15 0 251 251 0.01 0.0 LT 21 21 0 0.0% 9 12 12 0 403 403 0.01 0.0 LU 14 14 0 0.0% 0 14 14 0 354 354 0.01 0.0 HU 189 183 -6 -3.0% 30 159 153 -6 1 179 1 179 0.02 -5.6 MT 9 9 0 0.0% 1 8 8 0 103 103 0.00 0.0 NL 213 213 0 0.0% 0 213 213 0 6 688 6 688 0.13 0.1 AT 149 153 3 2.2% 0 149 153 3 3 164 3 164 0.06 3.3 PL 498 498 0 0.0% 117 381 381 0 4 296 4 296 0.09 0.1 PT 201 201 0 0.0% 31 170 170 0 1 707 1 707 0.03 0.0 RO 183 183 0 0.0% 60 123 123 0 1 877 1 877 0.04 0.0 SI 17 17 0 0.0% 6 11 11 0 388 388 0.01 0.0 SK 55 53 -2 -3.8% 17 38 36 -2 779 779 0.02 -2.1 FI 69 69 0 0.0% 0 69 69 0 1 994 1 994 0.04 0.0 SE 106 106 0 0.0% 0 106 106 0 4 241 4 241 0.08 0.1 EU27 6 711 6 709 -0.2 0.0% 711 6 000 5 997 -2.3 113 646 113 648 2.3 0.0 11.2 Update of the United Kingdom contribution Based on Article 148 of the Withdrawal Agreement, the United Kingdom will make payments to the Union to cover its share in the outstanding commitments prior to 2021 to be paid in 2022 as well as in the Union’s liabilities (such as pensions) and contingent financial liabilities. The overall contribution of the United Kingdom will also include the payments to be made by the Union to the United Kingdom or vice versa related with own resources corrections and adjustments for the financial years before 2021. Compared to the amounts indicated in the Draft Budget 2022, the updated forecast of the United Kingdom contribution results in an increase of EUR 326 659 051 and amounts in total to EUR 11 016 705 653. This increase is the result of: a) the updated amounts related to the September invoice which was transmitted to the United Kingdom on 16 September 2021 with five instalments to be paid in 2022, and b) the forecast of the United Kingdom’s contribution to the staff pensions and other employment-related benefits of 2021 to be paid for the first time in 2022, as set out in section 11.1 above. The latter forecast is based on the United Kingdom’s share in the expenditure for staff pensions and other employment-related benefits acquired by EU staff until 31 December 2020 (Article 142(6) of the Withdrawal Agreement). The forecasted United Kingdom contribution is entered on the revenue side of the budget as part of the budget line receiving all United Kingdom contributions resulting from the Withdrawal Agreement (revenue item 6 6 0 2).

Reference to the Article of the Withdrawal agreement 2022 Total provisional UK contribution for 2022, of which: 11 016 705 653 1. RAL prior 2021 (including net financial corrections) Art. 140 10 818 886 434 2. Union's liabilities/Pensions* Art.142 253 964 699 3. Own resources corrections and adjustments, of which: 18 872 784 3.1 Surplus/deficit of 2020 Art.136(3)(a) -136 604 402 3.2 UK correction updates (2018-2019) Art.136 p.m. 3.3. VAT&GNI Art.136 137 400 327. 3.4. TOR Art.136, Art. 140(4) 18 076 859 4. Fines Art.141 -33 609 512 5. Contingent liabilities, of which: 5.1 ELM, EFSI, EFSD, loans (Guarantee funds) Art.143 p.m. 5.2 Financial Instruments Art.144 p.m. 5.3 Legal cases (incl. fines) Art.147 p.m. 6. ECSC net assets Art.145 -36 656 456 7. EIF investment Art.146 -6 609 097 8. Access to networks/systems/data bases** Art. 49(2), Art. 50 and 53, Art. 62(2), Art. 63(1)(e), Art. 63(2), Art. 99(3), Art. 100(2) 1 856 801 * the amount of EUR 225 million will be entered in the EU budget as assigned revenue ** to be entered in the EU budget as assigned revenues 11.3 Transfer of net assets of the European Coal and Steel Community According to Article 145 of the Withdrawal Agreement, the Union is liable to the United Kingdom for its share in the net assets of the European Coal and Steel Community (ECSC) in liquidation on 31 December 2020, amounting to EUR 183 282 282. The related reimbursement are made in five equal annual instalments of EUR 36 656 456 from 2021 to 2025. These reimbursements are to be fully compensated by the transfer of the United Kingdom share in the net assets of the ECSC to the Union’s budget in the form of annual contributions from 2021 to 2025. For this purpose, the revenue item (6 6 0 4) is used, so as to record the contributions from the ECSC in liquidation aiming at fully compensating the effects of the corresponding reductions accounted for in the United Kingdom contributions to the Union’s annual budget, as recorded under item 6 6 0 2. EUR Revenue line Name Amount 6 6 0 4 Contributions from the European Coal and Steel Community (ECSC) in liquidation 36 656 456 Total 36 656 456 12.Additional modification of budgetary nomenclature and budget remarks 12.1 European Year of Youth In view of the 2022 European Year of Youth and upcoming legislative proposals, the Commission proposes to include in the budget remarks references to the preparation and settlement of the corresponding concrete actions in view of envisaged activities in 2022 in both the Erasmus+ and European Solidarity Corps programmes, at chapter level. The corresponding budgetary remarks are provided in the budgetary annex. 12.2 Changes proposed in DAB 6/2021 In draft amending budget 6/2021, the Commission proposed to adjust the budgetary remarks and budgetary nomenclature following requests from specific Member States to transfer resources pursuant to Articles 14 and 26 of the Common Provisions Regulation (CPR). Through this amending letter, the Commission proposes to introduce the same changes in the 2022 draft budget. The corresponding budgetary remarks are provided in the budgetary annex. 12.3 Adjustments following adoption of sectoral legal bases The budgetary remarks are proposed to be updated following the recent adoption of sectoral legal bases that were not reflected in the DB 2022. Additionally, the EFTA annex to the EU Budget is updated to mirror the final participation of EEA EFTA States to EU programmes in line with (i) Protocol 31 of the EEA Agreement and the adoption of successive EEA Joint Committee and (ii) upcoming amendments to Protocol 32 of the EEA Agreement which defines the financial modalities for implementation of article 82 of the EEA Agreement including an exceptional contribution of EEA EFTA States proportional to Next Generation EU Credits for Horizon Europe and the Union Civil Protection Mechanism and a reviewed calculation of the EFTA States financial contribution for completion lines taking into account the consequences of the UK withdrawal. The corresponding modifications are provided in the budgetary annex. 12.4 Pilot projects and preparatory actions As set out in the ‘executability letter’ of 17 November 2020, the Commission considered that the commitment and payment appropriations related to pilot projects and preparatory actions adopted under the 2021 budget that were assessed by the Commission as ‘category C’ - i.e. fully covered by a legal base or the ideas are otherwise being addressed - could be transferred to the relevant budget lines of the existing programmes to finance the proposed activities. These related appropriations in the 2021 budget have been transferred through the budgetary authority DEC 1/2021, which was adopted by the European Parliament and the Council in April 2021. Given that the level of payment appropriations for the existing programmes in the DB 2022 already includes the financing of these initiatives in 2022, as a technical correction it is proposed to cancel in this amending letter the payment appropriations corresponding to PP 09 21 03. in EUR Budget line Name Commitment appropriations Payment appropriations PP 09 21 03 Pilot project — Assessing Options for use of hydrogen in shipping 0 -135 000 Total 0 -135000 As regards the budget nomenclature, these transfers should also be reflected in the 2022 budget documents. The Commission therefore proposes to adjust the budget nomenclature by transferring and deleting the preparatory action and eight pilot projects that were created in 2021.