amending Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 312 thereof,

amending Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020

The present proposal has no immediate budgetary implications. Special instruments are mobilised and appropriations entered in the annual budget subject to the procedures laid down in the MFF Regulation, the relevant basic acts (see Article 3, paragraph 2 of that Regulation) and the Interinstitutional Agreement on budgetary discipline, on cooperation in budgetary matters and on sound financial management.

Concerning the Global margin for payments, it is proposed to remove the annual caps set for 2018-2020 (Article 5.2) to allow for the full mobilisation, in the later years of the MFF, of the large margins in payments left unused in 2016 and 2017 should it prove necessary, and therefore ensure specific and maximum flexibility.

Furthermore, it is proposed to remove the limitations in time and scope of the Global margin for commitments (Article 14).

Taking into account the use made of special instruments since the beginning of the MFF period and the new challenges the Union has been and continues to be confronted with, the Commission proposes to amend the MFF Regulation in order to increase the annual maximum amounts set for the Emergency Aid Reserve (Article 9) and the Flexibility Instrument (Article 11) and to introduce a new special instrument for setting up a European Union Crisis Reserve financed from de-committed appropriations to allow the Union to react rapidly to crises, such as the current migration crisis, as well as to events with serious humanitarian or security implications. In parallel with the present proposal, the Commission proposes to amend the Interinstitutional Agreement on cooperation in budgetary matters and on sound financial management in order to provide for the mobilisation procedure of the new Crisis Reserve.

The present proposal is based on Article 2 of the MFF Regulation which provides that the mid-term review of the MFF shall, as appropriate, be accompanied by a legislative proposal for the revision of this Regulation. Such a revision shall not reduce the pre-allocated national envelopes, without prejudice to the adjustment of the cohesion policy envelopes made in accordance with Article 7 of the MFF Regulation.

Against this background, the European Parliament called for bold steps to enhance the Union budget's flexibility, whilst informal Council discussions also pointed at the need to enhance the ability of the current MFF to respond to unforeseen events.

In order to mobilise additional financial means for measures contributing to tackle the above mentioned challenges, wide use has been made of all budgetary availabilities, including redeployments, margins and special instruments, and new instruments such as European Union Trust Funds and the Facility for Refugees in Turkey were set up to draw additional funding whilst respecting the constraints set by the MFF. Compared with the previous period the special instruments laid down in Regulation No 1311/2013 ("MFF Regulation") have considerably increased the flexibility of the MFF, allowing the Union to take decisive action. However, as these challenges persist, the Union's continued capacity to react swiftly in emergency situations is at stake.

In its Communication on the "Mid-Term Review/Revision of the Multiannual Financial Framework 2014-2020 – An EU Budget Focused on Results" the Commission has assessed the functioning and use made of special instruments in the first two to three years of implementation of the MFF.

In the first years of the multiannual financial framework (MFF) for the years 2014-2020, the Union has been confronted with unforeseen challenges of an unprecedented scale resulting from instability in its neighbourhood occasioning security threats and mass migratory movements.

Having regard to the Treaty establishing the European Atomic Energy Community, and in particular Article 106a thereof,

Having regard to the proposal from the European Commission,

Having regard to the consent of the European Parliament,

After transmission of the draft legislative act to the national parliaments,

Acting in accordance with a special legislative procedure,

Whereas:

(1)Special instruments have been extensively used in the first years of implementation of the 2014-2020 multiannual financial framework (MFF) set out in Council Regulation (EU, Euratom) No 1311/2013 to address new challenges which arose in the European neighbourhood and called for swift and comprehensive Union action to deal with their far-reaching humanitarian and security implications.

(2)The circumstances which occasioned those extraordinary measures and the need to take further action persist, as shown by the recourse made, again, under the draft budget for the year 2017 to margins and special instruments, which reduces the budgetary availabilities to confront such situations in the remaining period of the MFF.

(3)In order to implement specific and maximum possible flexibility and to ensure the sufficiency of payment ceilings to allow the Union to fulfil its obligations in compliance with Article 323 of the Treaty, the limitations set for the adjustment of payment ceilings for the years 2018-2020 need to be removed.

(4)The Emergency Aid Reserve and the Flexibility Instrument need to be reinforced and the restrictions regarding the Global margins for commitments and payments removed in order to maintain a sufficient capacity for the Union to react to unforeseen circumstances.

(5)A new special instrument establishing a European Union Crisis Reserve financed from de-committed appropriations needs to be provided for in order to allow the Union to react rapidly to crises, such as the current migration crisis, as well as to events with serious humanitarian or security implications.

(6)Regulation (EU, Euratom) No 1311/2013 should therefore be amended accordingly,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EU, Euratom) No 1311/2013 is amended as follows:

(1)In Article 3, paragraph 2 is replaced by the following:

(2)"2. The special instruments provided for in Articles 9 to 15 shall ensure the flexibility of the MFF and shall be laid down in order to allow the budget procedure to run smoothly. The commitment appropriations may be entered in the budget over and above the ceilings of the relevant headings laid down in the MFF where it is necessary to use the resources from the Emergency Aid Reserve, the European Union Solidarity Fund, the Flexibility Instrument, the European Globalisation Adjustment Fund, the Contingency Margin, the European Union Crisis Reserve, the specific flexibility to tackle youth unemployment and strengthen research and the global margin for commitments, in accordance with Council Regulation (EC) No 2012/2002, Regulation (EC) No 1309/2013 of the European Parliament and of the Council, and the Interinstitutional Agreement on budgetary discipline, cooperation in budgetary matters and on sound financial management.".

(3)In Article 5, paragraph 2 is deleted.

(4)In Article 6(1), the following point (f) is added:

"(f)calculation of the de-committed appropriations made in year n-2 to be made available to the European Union Crisis Reserve provided for in Article 13a.".