EUROPEAN COMMISSION Brussels, 30.11.2018 COM(2018) 900 final Second DRAFT General Budget

of the European Union

for the financial year 2019

GENERAL INTRODUCTION



DOCUMENTS Second DRAFT General Budget

of the European Union

for the financial year 2019 GENERAL INTRODUCTION

DRAFT GENERAL BUDGET 2019 STATEMENT OF REVENUE AND EXPENDITURE BY SECTION

Having regard to: –the Treaty on the Functioning of the European Union, and in particular Article 314 thereof, in conjunction with the Treaty establishing the European Atomic Energy Community, and in particular Article 106a thereof, –the Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years 2014-2020 (the "MFF Regulation"), and in particular Article 13 thereof, –the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, –the Council Decision 2014/335/EU, Euratom of 26 May 2014 on the system of own resources of the European Union, –the Regulation (EU, Euratom) No 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, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2013, (EU) No 283/2014, and Decision No 541/2014/EU, and repealing Regulation (EU, Euratom) No 966/2012, –the original draft general budget of the European Union for the financial year 2019, presented by the Commission on 21 June 2018, –the Council’s position on the original draft general budget of the European Union for the financial year 2019 adopted by the Council on 4 September 2018, –the Amending letter 1/2019 to the original draft general budget 2019, presented by the Commission on 16 October 2018, –the European Parliament’s amendments on the Council’s position on the original draft general budget of the European Union for the financial year 2019, adopted by the European Parliament on 25 October 2018, The European Commission hereby presents to the European Parliament and to the Council the general introduction to the second draft general budget for 2019. Simultaneously with this general introduction, the full details by section of the second draft budget for 2019 are available on EUR-Lex ( http://eur-lex.europa.eu/budget/www/index-en.htm ) in all linguistic versions.

TABLE OF CONTENTS 1. Introduction 2. The multiannual financial framework and the Second 2019 draft budget 2.1. Ceilings of the multiannual financial framework for the 2019 budget 2.2. Overview of the second 2019 draft budget 3. Key Elements of the Second Draft Budget Proposal 3.1. Horizontal issues 3.1.1. Decentralised agencies 3.1.2. Executive agencies 3.1.3. Pilot Projects and Preparatory Actions 3.2. General approach for commitment appropriations 3.2.1. Heading 1a — Competitiveness for Growth and Jobs 3.2.2. Heading 1b — Economic, Social and Territorial Cohesion 3.2.3. Heading 2 — Sustainable Growth: Natural Resources 3.2.4. Heading 3 — Security and Citizenship 3.2.5. Heading 4 — Global Europe 3.2.6. Heading 5 — Administration 3.2.7. Special instruments: EGF, EAR and EUSF 3.3. General approach for payment appropriations 3.4. Reserves

3.5. Changes in nomenclature and budget remarks 3.5.1. Budget remarks 3.5.2. Nomenclature 4. Concluding Remarks 5. 2019 second draft budget by financial framework headings and main programmes 1.Introduction On 21 June 2018, the Commission transmitted the draft budget for 2019 in all official languages. On 4 September 2018, the Council completed its reading of the draft budget and on 25 October 2018 the European Parliament adopted its reading. On 16 October the Commission transmitted amending letter 1/2019 with updated estimates for the year 2019. As the European Parliament adopted amendments to the draft budget which could not be accepted by the Council, a Conciliation Committee was convened, in accordance with Article 314 §4(c) of the Treaty on the Functioning of the European Union (TFEU). The Conciliation Committee worked over a period of twenty-one days, between 30 October and 19 November 2018. Although significant progress was made during the discussions, it was not possible to reconcile the positions of the European Parliament and Council within this period, in particular with regard to the application of the new Article 15.3 of the Financial Regulation on making appropriations corresponding to decommitments available again for research projects. However, draft amending budget no 6/2018 was agreed by both the European Parliament and the Council. In the absence of agreement in the Conciliation Committee, the Commission now submits a second draft budget for 2019, in accordance with Article 314 §8 of the TFEU. With this proposal, the Commission is seeking to reconcile the positions of the European Parliament and Council, without recourse to a further period of conciliation because of timing constraints. If no agreement on the budget can be reached before the end of 2018 the provisional twelfths regime would take effect as from 1 January 2019. This is a procedure set out in Article 315 §1 TFEU, which would cause delays in the implementation of key policies and programmes, in particular in the field of agriculture, and would prevent the commencement of any new activities. With the imperative of reaching a timely adoption of the 2019 budget, the Commission proposal for a second draft budget for 2019 builds on the progress made in the Conciliation Committee, which to a large extent restored the Commission’s original draft budget, as amended by Amending letter no 1/2019, with some significant reinforcements in commitment appropriations for key programmes contributing to growth and jobs (such as Erasmus+ and the Youth Employment Initiative) and with some decreases and redeployments especially in heading 4 following the readings of the Council and the European Parliament of the original draft budget. A targeted increase of Horizon 2020 is proposed through the application of Article 15.3 of the Financial Regulation. The overall level of payments following the changes in commitments and also rebalancing some frontloading in 2018 is lower compared to Amending letter 1/2019. 2.The multiannual financial framework and the Second 2019 draft budget 2.1.Ceilings of the multiannual financial framework for the 2019 budget The ceilings for commitment and payment appropriations in the multiannual financial framework (MFF) for the establishment of the second 2019 draft budget are presented in the table below: Heading 2019 MFF ceilings million EUR, at current prices Commitment appropriations 1. Smart and inclusive growth 79 924,0 1a Competitiveness for growth and jobs 23 082,0 1b Economic, social and territorial cohesion 56 842,0 2. Sustainable growth: natural resources 60 344,0 of which: European Agricultural Guarantee Fund (EAGF) — Market related expenditure and direct payments 43 881,0 3. Security and citizenship 2 801,0 4. Global Europe 10 268,0 5. Administration 10 786,0 of which: Administrative expenditure of the institutions 8 700,0 6. Compensations 0,0 TOTAL COMMITMENTS 164 123,0 TOTAL PAYMENTS 166 709,0 In the MFF, the overall ceiling for commitment appropriations is set at EUR 164 123 million, which represents 1,00 % of EU gross national income (GNI). The ceiling for payment appropriations is EUR 166 709 million, or 1,01 % of GNI. 2.2.Overview of the second 2019 draft budget (Commitment (CA) and payment (PA) appropriations in million EUR, rounded figures at current prices) Heading Budget Second Draft budget Difference Difference 2018 (1) 2019 2019 – 2018 2019 – 2018 (1) (2) (2 – 1) (2 / 1) CA PA CA PA CA PA CA PA 1. Smart and inclusive growth 77 531,8 66 622,6 80 337,4 67 556,9 2 805,7 934,4 3,6% 1,4% Of which under Global Margin for Commitments 1 111,8 413,4 Ceiling 76 420,0 79 924,0 Margin 1a Competitiveness for growth and jobs 21 999,6 20 095,3 23 145,4 20 521,5 1 145,9 426,3 5,2% 2,1% Of which under Flexibility Instrument Of which under Global Margin for Commitments 760,6 63,4 Ceiling 21 239,0 23 082,0 Margin 1b Economic, social and territorial cohesion 55 532,2 46 527,3 57 192,0 47 035,4 1 659,8 508,1 3,0% 1,1% Of which under Global Margin for Commitments 351,2 350,0 Ceiling 55 181,0 56 842,0 Margin 2. Sustainable growth: natural resources 59 238,6 56 041,0 59 642,1 57 399,9 403,5 1 358,9 0,7% 2,4% Ceiling 60 267,0 60 344,0 Margin 1 028,4 701,9 Of which: European Agricultural Guarantee Fund (EAGF) — Market related expenditure and direct payments 43 233,1 43 187,3 43 191,9 43 116,4 - 41,2 - 70,9 -0,1% -0,2% Sub-ceiling 44 163,0 43 881,0 3. Security and citizenship 3 493,2 2 980,7 3 786,6 3 527,4 293,4 546,7 8,4% 18,3% Of which under Flexibility Instrument 837,2 985,6 Ceiling 2 656,0 2 801,0 Margin 4. Global Europe 10 068,8 8 906,1 11 319,3 9 358,3 1 250,4 452,2 12,4% 5,1% Of which under Global Margin for Commitments 243,8 1 051,3 Ceiling 9 825,0 10 268,0 Margin 5. Administration 9 665,5 9 666,3 9 943,0 9 944,9 277,5 278,6 2,9% 2,9% Ceiling 10 346,0 10 786,0 Of which offset against Contingency Margin - 318,0 - 253,9 Margin 362,5 589,1 Of which: Administrative expenditure of the institutions 7 579,9 7 580,7 7 747,3 7 749,2 167,4 168,5 2,2% 2,2% Sub-ceiling 8 360,0 8 700,0 Of which offset against Contingency Margin - 318,0 - 253,9 Sub-margin 462,1 698,8 Appropriations for headings 1 to 6 159 998,0 144 216,7 165 028,4 147 787,4 5 030,4 3 570,8 3,1% 2,5% Of which under Flexibility Instrument 837,2 678,3 985,6 909,8 Of which under Global Margin for Commitments 1 355,6 1 464,7 Of which under Contingency Margin Ceiling 159 514,0 154 565,0 164 123,0 166 709,0 Of which offset against Contingency Margin - 318,0 - 253,9 Margin 1 390,9 11 026,7 1 291,1 19 831,4 Appropriations as % of GNI (2) 1,02% 0,92% 1,00% 0,90% Other Special instruments(3) 698,5 551,2 577,2 411,5 - 121,3 - 139,7 -17,4% -25,3% Total appropriations 160 696,5 144 767,9 165 605,6 148 198,9 4 909,2 3 431,0 3,1% 2,4% Appropriations as % of GNI (2) 1,02% 0,92% 1,00% 0,90% (1) Budget 2018 includes amending budgets 1 to 5 and draft amending budget 6. (2) The second draft budget 2019 is based on the forecast of GNI as included in the technical adjustment of the MFF adopted on 23 May 2018 (COM(2018) 282). (3) 'Other Special instruments' includes the ‘Emergency Aid Reserve (EAR)’, the ‘European Globalisation Adjustment Fund (EGF)’ and the ‘European Union Solidarity Fund (EUSF)’. In terms of commitment appropriations (including special instruments), the total expenditure proposed in the second draft budget (DB) 2019 is EUR 165 605,6 million, corresponding to 1,00 % of GNI, that is EUR 4 909,2 million more than in 2018 (+ 3,1 %), when including amending budgets 1 to 5/2018 and draft amending budget 6/2018. Overall, this leaves a combined margin of EUR 1 291,1 million under the various ceilings of the MFF taking into account the use of the Global margin for commitments (EUR 1 464,7 million), the mobilisation of the Flexibility Instrument (EUR 985,6 million) and the offset of the use of the Contingency Margin for migration-related expenditure mobilised in 2017 (EUR 253,9 million). For payment appropriations (including special instruments), the requested total expenditure is EUR 148 198,9 million, corresponding to 0,90 % of GNI. This is an increase of EUR 3 431,0 million compared to 2018 (+ 2,4 %) when including amending budgets 1 to 5/2018 and draft amending budget 6/2018. This leaves a margin of EUR 19 831,4 million under the MFF ceiling, taking into account the impact on the 2019 payment appropriations of the mobilisations of the Flexibility Instrument in 2016, 2017, 2018 and 2019 (EUR 909,8 million).

Commitment appropriations for Competitiveness for Growth and Jobs (heading 1a) are set at EUR 23 145,4 million. This is an increase of 5,2 % compared to 2018, which mainly relates to the Connecting Europe Facility (CEF), Horizon 2020, Erasmus and the European Defence Industrial Development Programme (EDIDP), leaving no margin under this heading and requiring the use of the Global margin for commitments (EUR 63,4 million). Payment appropriations increase by 2,1 % to EUR 20 521,5 million. For Economic, Social and Territorial Cohesion (heading 1b) commitment appropriations increase by 3,0 % to EUR 57 192,0 million, leaving no margin under this heading after the use of the Global Margin for Commitments to finance the Youth Employment Initiative (EUR 350,0 million). Payment appropriations increase by 1,1 % to EUR 47 035,4 million. Commitment appropriations of EUR 59 642,1 million are proposed for Sustainable Growth: Natural Resources (heading 2). This level of expenditure represents a 0,7 % increase compared to 2018, leaving a significant margin of EUR 701,9 million under the ceiling. Payment appropriations amount to EUR 57 399,9 million, increasing by 2,4 % compared to 2018. Integrating the latest update on assigned revenue, the funding for market-related expenditure and direct aids is EUR 43 191,9 million in commitment appropriations, and EUR 43 116,4 million in payment appropriations. Security and Citizenship (heading 3) sees a 8,4 % increase in commitment appropriations to EUR 3 786,6 million, leaving no margin under this heading after the mobilisation of the Flexibility Instrument (EUR 985,6 million). Payment appropriations increase by 18,3 % to EUR 3 527,4 million. Global Europe (Heading 4) sees an increase in commitment appropriations of 12,4 % to EUR 11 319,3 million (including the impact of the extension of the Facility for Refugee in Turkey), leaving no margin under this heading and requiring the use of the Global margin for commitments (EUR 1 051,3 million). Payment appropriations increase by 5,1 % to EUR 9 358,3 million. Commitment and payment appropriations for Administration (heading 5) for all institutions combined including pensions and European schools increase by 2,9 % for both commitments (EUR 9 943,0 million) and payments (EUR 9 944,9 million). The resulting unallocated margin is EUR 589,1 million after the offset of the use of the Contingency Margin for migration-related expenditure mobilised in 2017 (EUR 253,9 million). 3.Key Elements of the Second Draft Budget Proposal Overall, the second draft budget builds on the progress made during the Conciliation Committee. The details of the amendments proposed to the original draft budget, as modified by Amending letter 1/2019, are outlined hereafter. 3.1.Horizontal issues 3.1.1.Decentralised agencies For decentralised agencies, the EU contribution (in commitment appropriations and in payment appropriations) and the number of posts are proposed to be set at the level of the original draft budget as amended by Amending letter 1/2019, with the following amendments: ·Under heading 1a: oThe European GNSS Agency (GSA, budget article 02 05 11) for which 5 additional posts are proposed to be allocated and the level of commitment and payment appropriations is proposed to be increased by EUR 357 500. oThe European Labour Authority (ELA, budget article 04 03 15) for which the level of commitment and payment appropriations is proposed to be decreased by EUR 8 947 000. oThe European Network and Information Security Agency (ENISA, budget article 09 02 03), for which the level of commitment and payment appropriations is proposed to be increased by EUR 400 000. oThe Body of European Regulators for Electronic Communications (BEREC, budget article 09 02 04) for which 2 additional posts are proposed to be allocated and the level of commitment and payment appropriations is proposed to be increased by EUR 143 000. oThe European Banking Authority (EBA, budget article 12 02 04) for which the establishment plan is proposed to be reduced by 2 posts. oThe European Insurance and Occupational Pension Authority (EIOPA, budget article 12 02 05) for which the establishment plan is proposed to be reduced by 4 posts and the level of commitment and payment appropriations is proposed to be decreased by EUR 1 100 000. oThe European Securities and Markets Authority (ESMA, budget article 12 02 06) for which the establishment plan is proposed to be reduced by 23 posts and the level of commitment and payment appropriations is proposed to be decreased by EUR 11 000 000. ·Under heading 3:

oThe European Union Agency for Law Enforcement Cooperation (EUROPOL, budget article 18 02 04) for which 10 additional posts are proposed to be allocated and the level of commitment and payment appropriations is proposed to be increased by EUR 8 357 500. oThe European Agency for the operational management of large-scale IT systems in the area of freedom, security and justice (eu-LISA, budget article 18 02 07) for which the level of commitment and payment appropriations is proposed to be increased by EUR 4 000 000. oThe European Asylum Support Office (EASO, budget article 18 03 02) for which commitment and payment appropriations are proposed to be set at the level proposed by the Commission in the original draft budget. The European Commission will review the funding requirements of EASO for the financial year 2019, once the legislative proposal of 12 September 2018 to reinforce the Agency’s operational support capabilities is adopted. If needed, the Commission will propose corresponding budgetary proposals. oThe European Body for the Enhancement of Judicial Cooperation (EUROJUST, budget article 33 03 04) for which 5 additional posts are proposed to be allocated and the level of commitment and payment appropriations is proposed to be increased by EUR 357 500. 3.1.2.Executive agencies For executive agencies, the EU contribution (in commitment appropriations and in payment appropriations) and the number of posts are proposed to be set at the level of the original draft budget, as amended by Amending letter 1/2019. 3.1.3.Pilot Projects and Preparatory Actions The second draft budget includes 75 pilot projects and preparatory actions for a total amount of EUR 114,9 million in commitment appropriations, reflecting the European Parliament's reading of the original draft budget.



3.2.General approach for commitment appropriations 3.2.1. Heading 1a — Competitiveness for Growth and Jobs For heading 1a, commitment appropriations are proposed to be set at the level of the original draft budget, as modified by Amending letter 1/2019, with the amendments included in the table below: In EUR Budget line / Programme Name Reinforcement in commitment appropriations DB 2019 (incl. AL1) Second Draft Budget 2019 Difference 1.1.12 International Thermonuclear Experimental Reactor (ITER) -3 500 000 32 05 01 02 Construction, operation and exploitation of the ITER facilities — European Joint Undertaking for ITER — Fusion for Energy (F4E) 354 658 200 351 158 200 -3 500 000 1.1.13 European Earth Observation Programme (Copernicus) -17 500 000 02 06 01 Delivering operational services relying on space-borne observations and in-situ data (Copernicus) 189 755 000 188 255 000 -1 500 000 02 06 02 Building an autonomous Union’s Earth observation capacity (Copernicus) 686 315 000 670 315 000 -16 000 000 1.1.4 Competitiveness of enterprises and small and medium-sized enterprises (COSME) 5 000 000 02 02 01 Promoting entrepreneurship and improving the competitiveness and access to markets of Union enterprises 128 039 000 130 039 000 2 000 000 02 02 02 Improving access to finance for small and medium-sized enterprises (SMEs) in the form of equity and debt 221 430 000 224 430 000 3 000 000 1.1.5 Education, Training and Sport (Erasmus+) 200 000 000 15 02 01 01 Promoting excellence and cooperation in the European education and training area and its relevance to the labour market 2 217 836 200 2 411 836 200 194 000 000 15 02 01 02 Promoting excellence and cooperation in the European youth area and the participation of young people in European democratic life 169 070 000 175 070 000 6 000 000 1.1.6 Employment and Social Innovation (EaSI) 6 300 000 04 01 04 02 Support expenditure for the programme Employment and Social Innovation 2 950 000 3 400 000 450 000 04 03 02 01 Progress — Supporting the development, implementation, monitoring and evaluation of Union employment and social policy and working conditions legislation 77 373 225 78 873 225 1 500 000 04 03 02 02 EURES — Promoting workers’ voluntary geographical mobility and boosting employment opportunities 28 626 491 32 976 491 4 350 000 1.1.DAG Decentralised agencies -20 146 500 02 05 11 European GNSS Agency 32 270 863 32 628 363 357 500 09 02 03 European Union Agency for Network and Information Security (ENISA) 15 424 465 15 824 465 400 000 09 02 04 Body of European Regulators for Electronic Communications (BEREC) — Office 5 534 665 5 677 665 143 000 12 02 05 European Insurance and Occupational Pensions Authority (EIOPA) 13 474 234 12 374 234 -1 100 000 12 02 06 European Securities and Markets Authority (ESMA) 38 235 160 27 235 160 -11 000 000 04 03 15 European Labour Authority (ELA) 11 071 650 2 124 650 -8 947 000 1.1.OTH Other actions and programmes 227 000 04 03 01 03 Free movement of workers, coordination of social security schemes and measures for migrants, including migrants from third countries 7 998 950 9 285 950 1 287 000 29 02 01 Providing quality statistical information, implementing new methods of production of European statistics and strengthening the partnership within the European Statistical System 73 245 000 72 185 000 -1 060 000 1.1.PPPA Pilot projects and preparatory actions 72 258 000 1.1.SPEC Actions financed under the prerogatives of the Commission and specific competences conferred to the Commission -1 210 000 01 02 01 Coordination and surveillance of, and communication on, the economic and monetary union, including the euro 12 000 000 11 730 000 -270 000 04 03 01 06 Information, consultation and participation of representatives of undertakings 7 903 000 7 103 000 -800 000 04 03 01 08 Industrial relations and social dialogue 16 000 000 15 000 000 -1 000 000 06 02 05 Support activities to the European transport policy and passenger rights including communication activities 11 500 000 12 860 000 1 360 000 09 02 01 Definition and implementation of the Union’s policy in the field of electronic communications 3 765 000 3 265 000 -500 000 Total 241 428 500 As a consequence, the level of commitment appropriations is proposed to be set at EUR 23 145,4 million, with no margin left under the expenditure ceiling of heading 1a and the use of the Global margin for commitments for an amount of EUR 63,4 million. Further to de-commitments made in 2017 (EUR 412,8 million) as a result of total or partial non-implementation of research projects, and in accordance with Article 15.3 of the Financial Regulation which exclusively applies to research, the Commission proposes to make EUR 100 million commitment appropriations available again for the reinforcement of the pilot initiative on the European Innovation Council within the SME instrumenton budget line 08 02 08: In EUR Budget line / Programme Name Appropriations to be made available again 1.1.31 Horizon 2020 100 000 000 08 02 08 SME instrument 100 000 000 Total 100 000 000 The budget remark is proposed to be adjusted accordingly.

3.2.2.Heading 1b — Economic, Social and Territorial Cohesion For heading 1b, commitment appropriations are proposed to be set at the level of the original draft budget, as modified by Amending letter 1/2019, with the amendments included in the table below: In EUR Budget line / Programme Name Reinforcement in commitment appropriations DB 2019 (incl. AL1) Second draft budget 2019 Difference 1.2.31 Technical assistance -1 744 903 04 02 63 01 European Social Fund — Operational technical assistance 25 078 000 23 333 097 -1 744 903 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 3 675 000 Total 118 596 764

As a consequence, the level of commitment appropriations is proposed to be set at EUR 57 192,0 million, with no margin left under the expenditure ceiling of heading 1b and the use of the Global margin for commitments for an amount of EUR 350,0 million. 3.2.3.Heading 2 — Sustainable Growth: Natural Resources For heading 2, commitment appropriations are proposed to be set at the level of the original draft budget, as modified by Amending letter 1/2019, with the amendments included in the table below: In EUR Budget line / Programme Name Reinforcement in commitment appropriations DB 2019 (incl. AL1) Second draft budget 2019 Difference 2.0.10 European Agricultural Guarantee Fund (EAGF) — Market related expenditure and direct payments -237 500 000 05 02 06 99 Other measures for olive oil 100 000 600 000 500 000 05 02 15 99 Other measures for pigmeat, poultry, eggs, bee-keeping, other animal products 13 000 000 28 000 000 15 000 000 05 03 01 10 Basic payment scheme (BPS) 16 464 000 000 16 211 000 000 -253 000 000 2.0.4 Environment and climate action (LIFE) 4 000 000 07 02 01 Contributing to a greener and more resource-efficient economy and to the development and implementation of Union environmental policy and legislation 148 835 000 150 335 000 1 500 000 07 02 02 Halting and reversing biodiversity loss 211 620 000 213 620 000 2 000 000 07 02 03 Supporting better environmental governance and information at all levels 47 500 000 48 000 000 500 000 2.0.PPPA Pilot projects and preparatory actions 13 500 000 Total -220 000 000 The decrease of commitment appropriations is fully attributed to higher assigned revenue arising from the EAGF surplus of 31 October 2018 which will cover the full needs of the sector as updated in Amending letter 1/2019. As a consequence, the level of commitments is proposed to be set at EUR 59 642,1 million, leaving a margin of EUR 701,9 million under the expenditure ceiling of heading 2. 3.2.4.Heading 3 — Security and Citizenship For heading 3, commitment appropriations are proposed to be set at the level of the original draft budget, as modified by Amending letter 1/2019, with the amendments included in the table below: In EUR Budget line / Programme Name Reinforcement in commitment appropriations DB 2019 (incl. AL1) Second draft budget 2019 Difference 3.0.11 Creative Europe 3 000 000 09 05 01 MEDIA Sub-programme — Operating transnationally and internationally and promoting transnational circulation and mobility 117 260 000 120 260 000 3 000 000 3.0.2 Internal Security Fund 5 000 000 18 02 01 01 Support of border management and a common visa policy to facilitate legitimate travel 330 317 547 335 317 547 5 000 000 3.0.8 Food and feed -8 000 000 17 04 01 Ensuring a higher animal health status and high level of protection of animals in the Union 163 500 000 155 500 000 -8 000 000 3.0.DAG Decentralised agencies -42 285 000 18 02 04 European Union Agency for Law Enforcement Cooperation (Europol) 128 789 065 137 146 565 8 357 500 18 02 07 European Agency for the operational management of large-scale IT systems in the area of freedom, security and justice (‘eu-LISA’) 291 350 509 295 350 509 4 000 000 18 03 02 European Asylum Support Office (EASO) 149 032 843 94 032 843 -55 000 000 33 03 04 The European Union’s Judicial Cooperation Unit (Eurojust) 37 316 059 37 673 559 357 500 3.0.PPPA Pilot projects and preparatory actions 15 075 000 3.0.SPEC Actions financed under the prerogatives of the Commission and specific competences conferred to the Commission 3 000 000 09 05 05 Multimedia actions 20 346 000 23 546 000 3 200 000 16 03 01 03 Information outlets 15 800 000 15 600 000 -200 000 Total -24 210 000 As a consequence, the level of commitments is proposed to be set at EUR 3 786,6 million, with no margin left under the expenditure ceiling of heading 3 and the mobilisation of the Flexibility Instrument for an amount of EUR 985,6 million. 3.2.5.Heading 4 — Global Europe For heading 4, commitment appropriations are proposed to be set at the level of the original draft budget, as modified by Amending letter 1/2019, with the amendments included in the table below: In EUR Budget line / Programme Name Reinforcement in commitment appropriations DB 2019 (incl. AL1) Second draft budget 2019 Difference 4.0.1 Instrument for Pre-accession assistance (IPA II) -138 700 000 05 05 04 02 Turkey - Support for economic, social and territorial development and related progressive alignment with the Union acquis 56 800 000 40 000 000 -16 800 000 22 02 01 01 Western Balkans - Support for political reforms and related progressive alignment with the Union acquis 189 267 000 193 267 000 4 000 000 22 02 01 02 Western Balkans - Support for economic, social and territorial development and related progressive alignment with the Union acquis 306 439 000 310 439 000 4 000 000 22 02 03 01 Turkey - Support for political reforms and related progressive alignment with the Union acquis 244 100 000 160 000 000 -84 100 000 22 02 03 02 Turkey - Support for economic, social and territorial development and related progressive alignment with the Union acquis 944 500 000 898 700 000 -45 800 000 4.0.10 Macro-financial Assistance (MFA) -15 000 000 01 03 02 Macro-financial assistance 42 000 000 27 000 000 -15 000 000 4.0.11 Guarantee Fund for external actions (GF) -48 222 935 01 03 06 Provisioning of the Guarantee Fund for external actions 48 222 935 0 -48 222 935 4.0.2 European Neighbourhood Instrument (ENI) 97 119 000 22 04 01 01 Mediterranean countries — Human rights, good governance and mobility 125 838 308 133 923 308 8 085 000 22 04 01 02 Mediterranean countries — Poverty reduction and sustainable development 629 108 985 668 160 985 39 052 000 22 04 01 03 Mediterranean countries — Confidence building, security and the prevention and settlement of conflicts 415 324 409 423 718 409 8 394 000 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) 308 811 939 329 811 939 21 000 000 22 04 02 01 Eastern Partnership — Human rights, good governance and mobility 241 931 953 250 016 953 8 085 000 22 04 02 02 Eastern Partnership — Poverty reduction and sustainable development 371 016 900 380 730 900 9 714 000 22 04 02 03 Eastern Partnership — Confidence building, security and the prevention and settlement of conflicts 12 231 062 12 770 062 539 000 22 04 20 Erasmus+ — Contribution from the European Neighbourhood Instrument (ENI) 84 544 000 86 794 000 2 250 000 4.0.3 Development Cooperation Instrument (DCI) 31 556 000 21 02 02 Cooperation with Asia 810 388 665 794 388 665 -16 000 000 21 02 04 Cooperation with the Middle East 194 531 328 178 531 328 -16 000 000 21 02 07 01 Environment and climate change 215 593 156 224 576 156 8 983 000 21 02 07 02 Sustainable energy 95 819 181 99 412 181 3 593 000 21 02 07 03 Human development 205 589 346 238 149 346 32 560 000 21 02 07 05 Migration and asylum 54 951 845 56 748 845 1 797 000 21 02 08 01 Civil society in development 219 626 756 230 999 756 11 373 000 21 02 20 Erasmus+ — Contribution from the development cooperation instrument (DCI) 98 638 290 103 888 290 5 250 000 4.0.OTH Other actions and programmes 2 000 000 13 07 01 Financial support for encouraging the economic development of the Turkish Cypriot community 33 122 000 35 122 000 2 000 000 4.0.PPPA Pilot projects and preparatory actions 6 325 000 Total -64 922 935 As a consequence, the level of commitments is proposed to be set at EUR 11 319,3 million, with no margin left under the expenditure ceiling of heading 4 and the use of the Global margin for commitments for an amount of EUR 1 051,3 million. 3.2.6.Heading 5 — Administration For heading 5, the number of posts in the establishment plans of the Institutions and the appropriations are proposed to be set at the level of the original draft budget, as amended by Amending letter 1/2019 with the following exceptions: ·The section of the Parliament, for which its reading of the original draft budget is approved taking account of the adjustments included in the Amending letter 1/2019 concerning the Authority for European Political Parties and European Political Foundations; ·The section of the Council, for which its reading of the original draft budget is approved; ·The section of the European Data Protection Supervisor, for which the Council's reading of the original draft budget is approved. Moreover, the following amendments are proposed on the number of posts in the establishment plans and the appropriations included in the original draft budget, as amended by Amending letter 1/2019, for the following Institutions:

·The section of the Court of Justice of the European Union, for which 5 additional posts are proposed to be allocated and the level of commitment and payment appropriations are proposed to be increased by EUR 415 016 (EUR 246 875 on budget line 1 2 0 0 Remunerations and allowances and EUR 168 141 on budget line 2 1 0 0 Purchase, servicing and maintenance of equipment and software); ·The section of the European External Action Service, for which the level of commitment and payment appropriations is proposed to be decreased by EUR 3 050 000, being the combined result of a proposed increase of EUR 1 200 000 on budget line 2 2 1 4 Strategic Communication Capacity and proposed decreases of - EUR 4 250 000 on the following budget lines: 1 1 0 0 Basic salaries (-EUR 3 280 000), 1 1 0 1 Entitlements under the Staff Regulations related to the post held (-EUR 10 000), 1 1 0 2 Entitlements under the Staff Regulations related to the personal circumstances of the staff member (-EUR 840 000) and 1 1 0 3 Social security cover (-EUR 120 000). The impact in the 2019 budget of the automatic salary update to be applied from 1 July 2018 (1.7 % instead of 2.0 %) is proposed to be integrated in all sections of the draft budget as follows: in EUR European Parliament -2 851 238 European Council and Council -965 489 European Commission (including pensions) -13 781 615 Court of Justice of the European Union -891 000 European Court of Auditors -359 000 European Economic & Social Committee -220 825 European Committee of the Regions -160 594 European Ombudsman -26 880 European Data Protection Supervisor -14 568 European External Action Service -911 839 Total -20 183 048



Finally, additional reductions of EUR 0,8 million were identified and proposed across all Institutions, with the exception of the European Parliament, for expenditure related to buildings, as follows: in EUR European Council and Council -20 052 European Commission -557 239 Court of Justice of the European Union -77 689 European Court of Auditors -482 European Economic & Social Committee -27 215 European Committee of the Regions -20 008 European Ombudsman -2 287 European Data Protection Supervisor -4 026 European External Action Service -41 002 Total -750 000 As a consequence, and after taking into account pilot projects and preparatory actions (EUR 4,1 million) proposed under section 3.1.3 above, the level of commitment appropriations is proposed to be set at EUR 9 943,0 million, leaving a margin of EUR 589,1 million under the expenditure ceiling of heading 5, after the use of EUR 253,9 million of the margin to offset the mobilisation of the Contingency margin in 2017. 3.2.7.Special instruments: EGF, EAR and EUSF Commitment appropriations for the European Globalisation Adjustment Fund (EGF), for the Emergency Aid Reserve (EAR) and for the European Union Solidarity Fund (EUSF) are proposed to be set at the level of the original draft budget, as amended by Amending letter 1/2019. 3.3.General approach for payment appropriations The overall level of payment appropriations is proposed to be set at the level of the original draft budget, as amended by Amending letter 1/2019, with the following amendments: 1.Firstly, account is taken of the proposed level of commitment appropriations for non-differentiated expenditure, for which the proposed level of payment appropriations is equal to the level of commitment appropriations. This includes the additional reduction of agricultural expenditure by EUR 253,0 million. This approach is applied, by analogy, to the EU contribution to decentralised agencies and the Guarantee Fund for external actions. The combined effect is a proposed decrease of EUR 375,0 million; 2.The payment appropriations for all new pilot projects and preparatory actions included in the second draft budget are proposed to be set at 50% of the corresponding commitment appropriations, or at the level proposed by Parliament in its reading of the original draft budget, if lower. In the case of extension of existing pilot projects and preparatory actions, the level of payment appropriations is proposed to be that defined in the original draft budget plus 50% of the corresponding new proposed commitment appropriations, or at the level proposed by Parliament in its reading of the original draft budget, if lower. The combined effect is a proposed increase of EUR 57,5 million;



3.The amendments on the following budget lines are proposed as a result of the evolution in commitment appropriations for differentiated expenditure: In EUR Budget line / Programme Name Reinforcement in commitment appropriations DB 2019 (incl. AL1) Second Draft Budget 2019 Difference 1.1.12 International Thermonuclear Experimental Reactor (ITER) -3 500 000 32 05 01 02 Construction, operation and exploitation of the ITER facilities — European Joint Undertaking for ITER — Fusion for Energy (F4E) 366 696 185 363 196 185 -3 500 000 1.1.13 European Earth Observation Programme (Copernicus) -12 500 000 02 06 01 Delivering operational services relying on space-borne observations and in-situ data (Copernicus) 140 000 000 139 000 000 -1 000 000 02 06 02 Building an autonomous Union’s Earth observation capacity (Copernicus) 472 000 000 460 500 000 -11 500 000 1.1.31 Horizon 2020 30 000 000 08 02 08 SME instrument 482 502 033 512 502 033 30 000 000 1.1.5 Education, Training and Sport (Erasmus+) 170 000 000 15 02 01 01 Promoting excellence and cooperation in the European education and training area and its relevance to the labour market 2 096 100 000 2 261 000 000 164 900 000 15 02 01 02 Promoting excellence and cooperation in the European youth area and the participation of young people in European democratic life 170 850 000 175 950 000 5 100 000 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 134 040 000 127 540 000 -6 500 000 4.0.1 Instrument for Pre-accession assistance (IPA II) -90 000 000 05 05 04 02 Turkey - Support for economic, social and territorial development and related progressive alignment with the Union acquis 50 000 000 35 000 000 -15 000 000 22 02 03 01 Turkey - Support for political reforms and related progressive alignment with the Union acquis 150 719 568 105 719 568 -45 000 000 22 02 03 02 Turkey - Support for economic, social and territorial development and related progressive alignment with the Union acquis 708 080 653 678 080 653 -30 000 000 4.0.10 Macro-financial Assistance (MFA) -15 000 000 01 03 02 Macro-financial assistance 42 000 000 27 000 000 -15 000 000 Total 72 500 000 4.An additional reduction in payment appropriations is proposed on budget line 01 04 05 where it is proposed that the provisioning of the EFSI guarantee fund be reduced by the amount frontloaded in the budgetary authority transfer (DEC) No 22/2018 as follows: In EUR Budget line / Programme Name DB 2019 (incl. AL1) Budget 2019 Difference 1.1.10 European Fund for Strategic Investments (EFSI) -150 000 000 01 04 05 Provisioning of the EFSI guarantee fund 1 150 000 000 1 000 000 000 -150 000 000 Total -150 000 000 3.4.Reserves