EUROPEAN COMMISSION Brussels, 3.6.2020 COM(2020) 423 final DRAFT AMENDING BUDGET No 6

TO THE GENERAL BUDGET 2020



Reflecting in the budget 2020 the launch of the recovery plan for Europe



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, –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 44 thereof, –the general budget of the European Union for the financial year 2020, as adopted on 27 November 2019, –amending budget No°1/2020, adopted on 17 April 2020, –amending budget No°2/2020, adopted on 17 April 2020, –draft amending budget No°3/2020, adopted on 15 April 2020, –draft amending budget No°4/2020, adopted on 30 April 2020, –draft amending budget No°5/2020, adopted on 3 June 2020, The European Commission hereby presents to the European Parliament and to the Council Draft Amending Budget No°6/2020 to the 2020 budget. CHANGES TO THE STATEMENT OF REVENUE AND EXPENDITURE BY SECTION The changes to the general statement of revenue and section III are available on EUR-Lex ( https://eur-lex.europa.eu/budget/www/index-en.htm ). Table of Contents 1. Introduction 2. A Solvency support window within the European Fund for Strategic Investments (EFSI) 3. Reinforcement of the European Fund for Sustainable Development (EFSD) 4. Setting up the new React-EU initiative

5. Increasing the capital of the European Investment Fund (EIF) 6. Financing 7. Summary table by MFF heading EXPLANATORY MEMORANDUM 1. Introduction The purpose of Draft Amending Budget (DAB) No 6 for the year 2020 is to provide EUR 11 540,0 million in commitment appropriations and EUR 6 540,0 million in payment appropriations to reflect the impact of the legislative proposals adopted by the Commission on 27, 28 and 29 May in the framework of the European Union economic recovery package and complements the proposal to revise the Multiannual Financial Framework Regulation for 2020. 2.A Solvency support window within the European Fund for Strategic Investments (EFSI) The proposal to amend the EFSI Regulation includes the creation of a specific solvency support instrument, that will mobilise private capital to support the solvency of companies affected by the COVID-19 crisis with a view to restore normal operations and enhancing a sustainable and profitable business track, preserving jobs and sustaining the competitiveness of European enterprises. The appropriations will increase the EFSI Guarantee fund, to support the guarantees granted under the new solvency support window, increase the envelope dedicated to the European Investment Advisory Hub and the European Investment Project Portal for solvency support measures and allow the solvency support instrument to start already in 2020. Administrative support expenditure are proposed to finance risk analysis and reporting costs, setting up and monitoring of compliance rules and IT costs. EUR Budget line Name Commitment appropriations Payment appropriations Section III – Commission 01 01 04 01 Support expenditure for the European Fund for Strategic Investments (EFSI) 2 000 000 2 000 000 01 04 05 02 EFSI Guarantee fund — Solvency Support Instrument Window 4 980 000 000 2 490 000 000 01 04 06 02 EIAH and EIPP — Solvency Support Instrument Window 18 000 000 8 000 000 Total 5 000 000 000 2 500 000 000 3. Reinforcement of the European Fund for Sustainable Development (EFSD) An amendment of the EFSD Regulation was proposed within the framework of the response to the Covid-19 pandemic and its consequences. Providing additional funds to the EFSD under the current Multiannual Financial Framework will increase its capacity to grant guarantees in partner countries, and thus facilitates a swift reply to the Covid-19 pandemic in these regions. The amendment extends the geographic scope to the Western Balkans and also extends the investment period during which the EFSD guarantee agreements to support financing and investment operations can be concluded by one year, until 31 December 2021. A limited amount of administrative and technical support expenditure is proposed for the extension of the Regulation, notably for the amendment of EFSD support contracts to extend their scope to the Western Balkans. EUR Budget line Name Commitment appropriations Payment appropriations Section III – Commission 01 01 04 02 Support expenditure for the European Fund for Sustainable Development (EFSD) 1 000 000 1 000 000 01 03 08 02 Provisioning of the EFSD Guarantee Fund — Response to the COVID-19 outbreak 1 039 000 000 1 039 000 000 Total 1 040 000 000 1 040 000 000 4. Setting up the new React-EU initiative Under the React-EU initiative, Member States will be entitled to use additional amounts under the Investment for growth and jobs goal from the European Regional Development Fund (ERDF) or the European Social Fund (ESF) to support operations fostering crisis repair in the context of the COVID-19 pandemic in the regions whose economy and jobs have been hit harder and preparing the recovery of their economies, or to voluntarily increase the allocation for programmes supported by the Fund for European Aid to the most deprived (FEAD). EUR Budget line Name Commitment appropriations Payment appropriations Section III – Commission 04 02 59 European Social Fund — Financing under REACT-EU 1 494 750 000 747 375 000 04 02 63 03 European Social Fund — Operational technical assistance — Financing under REACT-EU 5 250 000 2 625 000 04 06 03 01 FEAD — Operational expenditure — Financing under REACT-EU p.m. p.m. 04 06 03 02 FEAD — Operational technical assistance — Financing under REACT-EU p.m. p.m. 13 03 59 European Regional Development Fund (ERDF) — Financing under REACT-EU 3 487 750 000 1 743 875 000 13 03 65 03 European Regional Development Fund (ERDF) — Operational technical assistance — Financing under REACT-EU 12 250 000 6 125 000 Total 5 000 000 000 2 500 000 000 Due to the extraordinary nature of the circumstances, specific rules for the implementation of the React-EU appropriations (significant level of initial pre-financing, 100% EU co-financing) are proposed. It is necessary that these resources are programmed under one or more new dedicated priority axes or, where appropriate, under a new dedicated operational programme. The budgetary structure will be adjusted accordingly: 3 new budget lines will be created under title 04 Employment, social affairs and inclusion for ESF, FEAD and under title 13 Regional and urban policy for ERDF in order to allow transparent implementation and reporting of the React-EU initiative. The split between the ESF and ERDF lines is indicative as the final allocation per Fund will be known when the programmes are adopted. 5. Increasing the capital of the European Investment Fund (EIF)