EN    EN EN 
 
EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 10.9.2008 
SEC(2008) 2435 
  
AMENDING LETTER No 1 
TO THE PRELIMINARY DRAFT BUDGET 2009 
STATEMENT OF EXPENDITURE BY SECTION 
Section III - Commission 
 
EN 2   EN AMENDING LETTER No 1 
TO THE PRELIMINARY DRAFT BUDGET 2009 
STATEMENT OF EXPENDITURE BY SECTION 
Section III - Commission 
Having regard to: 
– the Treaty establishing the European Community, and in particular Article 272 
thereof, 
– the Treaty establishing the European At omic Energy Community, and in particular 
Article 177 thereof, 
– Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial 
Regulation applicable to the genera l budget of the European Communities1, as last 
amended by Council Regulation (EC, Euratom) No 1525/20072, and in particular 
Article 34 thereof, 
the European Commission hereby presents to the budgetary authority the amending letter 
No 1 to the Preliminary Draft Budget for 2009 for the reasons set out  in the explanatory 
memorandum. 
                                                 
1 OJ L 248, 16.9.2002, p. 1. 
2 OJ L 343, 27.12.2006, p. 9. 
 
EN 3   EN TABLE OF CONTENTS 
1. Introduction................................................................................................................ .. 4 
2. Kosovo ...................................................................................................................... ... 4 
2.1. Background ................................................................................................................ .. 4 
2.2. Budget lines, legal bases and remarks.......................................................................... 6 3. Palestine ................................................................................................................... .... 6 
3.1. Background ................................................................................................................ .. 6 
3.2. Budget lines, legal bases and remarks.......................................................................... 9 4. Food Aid.................................................................................................................... . 10 
5. Georgia..................................................................................................................... .. 10 
6. Effect on the heading 4 margin .................................................................................. 10 7. Consular cooperation ................................................................................................. 11 8. Education, Audiovisual and Cultu re Executive Agency (EACEA)........................... 11 
8.1. Set-up and extensions................................................................................................. 11 8.2. Budgetary implications .............................................................................................. 12 9. Executive Agency for the Public Health  Programme (PHEA) and Trans-European 
Transport Network Executive Agency (TEN-T EA) ................................................. 13 
SUMMARY TABLE BY HEADING OF THE FINANCIAL FRAMEWORK
..................... 15 
STATEMENT OF EXPENDITURE BY SECTION  
The statement of expenditure by section is fo rwarded separately via the SEI-BUD system. An 
English version of the expend iture by section is attached for inform ation as a budgetary 
annex. 
 
EN 4   EN 1. I NTRODUCTION  
The Amending Letter No 1 (AL 1) to the Preliminary Draft Budget for 2009 (PDB 2009) 
covers the following: 
– the mobilisation of new funds for an am ount of EUR 40 million in commitment 
appropriations to support the stabil ity and development of Kosovo; 
– the mobilisation of additional funds for an amount of EUR 139 million in commitment and 
EUR 180 million in payment appropriations to support the Palestinian Authority. 
– the creation of a new budget article 19 06 06 C onsular cooperation; 
– the budgetary adaptations arising from the ex tension of the mandate  of the Education, 
Audiovisual and Culture Executive Agency (EACEA) to Tempus and ICI programmes; 
– the lifting of the reserves ente red in the 2009 preliminary draf t budget after approval of the 
extensions of the Executive Agency for the Public Health Programme (PHEA), and the 
Trans-European Transport Network Executive Agency (TEN-T EA). 
2. K OSOVO  
2.1. Background 
Kosovo has been under United Nations (UN) ad ministration since 1999 on the basis of UN 
Security Council Resolution 1244 (UNSCR). On  17 February 2008, the assembly of Kosovo 
adopted a resolution declaring Kosovo an i ndependent and sovereign state. Kosovo's 
constitution came into force on 15 June. To da te, Kosovo's independence has been recognized 
by 46 members of the UN and 21 European Union Member States. 
On 12 June 2008, the UN Secretary General issued  his proposals to reconfigure the United 
Nations Mission in Kosovo, acknowledging the n eed for the UN to adjust the operational 
aspects of the international presence in Kosovo and the European Union's readiness to play an 
enhanced role in Kosovo as reflected in the Council Conclusions of 14 December 2007. The 
reconfiguration process should be comple ted by the autumn of 2008. UNSCR 1244 will 
continue to apply until further notice. 
The Commission's Communication on the Western Balkans issued on 5 March 20083 
confirmed Kosovo's clear and tangible Euro pean Union perspective and the Commission's 
intention to support its institu tion-building and development, and to organise a Donors' 
Conference to mobilise funding to address Kosovo's most pressing needs. 
The 2008 June European Council confirmed its conclusions of December 2007 and the 
General Affairs and External Relations C ouncil (GAERC) conclusions of February 20084, 
stating that the European Union remained committed to playing a leading role in ensuring the stability of Kosovo. The Council welcomed the UN Secretary General's report facilitating the 
                                                
 
3 COM(2008) 127. 
4 Council of the European Union, document 11018/08 of 20.6.2008. 
 
EN 5   EN deployment of a European secu rity and defense policy (ESDP)  rule of law mission (EULEX) 
throughout Kosovo and allowing for an enhanced ope rational role of the European Union in 
the area of rule of law. Th e Council also expre ssed its support to th e Donors' Conference 
which was organised by the Commission and took  place on the 11th July 2008 and recalled its 
willingness to assist the economic and politic al development of Kosovo through a clear 
European perspective.  
In preparation for the conference, the Kosovo authorities, with the assistance of the 
International Financial Institutions (IFI) and the Commission have established a Medium-Term Expenditure Framework (MTEF)
5 for the years 2008-2011, which incorporates all 
foreseeable public revenue and expenditure. In a ddition, detailed sectoral strategy papers have 
been drafted on areas such as education, transport, and rule of law. This documentation was 
presented and discussed at the Conference and se rved as a basis for pledging by participants 
to fill an identified gap of some EUR 1.4 b illion, of which EUR approximately 1 billion is 
estimated to be required for socio-economic deve lopment. This gap is being addressed by the 
European Union, the USA, but also individual Eu ropean Union Member States, IFIs and other 
bilateral donors.  
Total pledges made at the conference amount ed to EUR 1,236 million, of which EUR 102 
million were for the stabilisation reserve6. In line with its political commitment that Kosovo is 
a profoundly European matter, the European Union in its entire ty pledged 2/3 of the total 
collected. 
In addition to EUR 285 milli on from Member States, the Commission pledged EUR 508 
million, composed of some EUR 358 million fr om the Instrument for Pre-Accession 
Assistance (IPA) and a further EUR 150 million in Macro-Financial A ssistance (MFA). This 
pledge is conditional to the Kosovo government's commitment to the sound and efficient management of donated funds and the implementa tion of agreed policy reforms. It is also 
subject to sufficient budgetary appropriations be ing voted by the Budgetary Authority as the 
European Union pledge currently stands above  the current financial programming for Kosovo 
by EUR 100 million as some EUR 408 million are programmed under IPA and Macro 
Financial Assistance funding (MFA) over the period 2008/2010
7. Thus the Commission 
intends to increase th e amounts foreseen for Kosovo in the financial programming by some 
EUR 100 million to meet the EU R 508 million pledging target.  
In order to minimize the impact of additio nal funding for Kosovo on the limited margin 
foreseen for 2009, the Commission is requestin g EUR 40 million as additional front-loaded 
assistance under the 2009 budget. This amount is to be directed towards development 
assistance via IPA. The remaining EUR 60 milli on would stem from internal redeployments 
within heading 4 that will be transferred to the IPA programme  already in 2008; this would 
also mean a faster translation of pledge into reality for the development of Kosovo.  
                                                 
5 The International Monetary Fund, in its Le tter of Assessment (on the MTEF and accompanying 
policies) gave a broadly positive assessment on the macroeconomic policy framework for the period 
2008/2011. 
6 To build up a contingency reserve for instance for expenditure related to debt obligations which Kosovo 
may inherit. 
7 EUR 258 million are already programmed under the Instrument for Pre-Acces sion Assistance (IPA) 
over the three-year period covered by the MTEF, and EUR 150 million are still available as macro-
financial assistance (MFA). 
 
EN 6   EN Should additional funding for Kosovo become av ailable, the Commission would want to 
mobilise grant funding to address the substantial infrastructure needs identified in the MTEF. 
The IPA Infrastructure Preparation Facility is  indeed rapidly buildi ng a track record in 
financing preparatory activities for sizeable inve stment projects in Kosovo. The absorption of 
such grant funding would be ensured in close cooperation with the re levant International 
Financial Institutions. By way of follow-up, the government of Kosovo is committed to 
establish, within the next 3 months, a cohere nt framework for donor coherent coordination 
that fully takes account of Kosovo’s European integration ambitions.  
The Authorities will also develop and implem ent a comprehensive action plan to improve 
budget management, including in the areas of intern al control and audit, to integrate better the 
capital and current budget, and to accelerat e the execution of the public investment 
programme by raising the capacity to plan , prioritise, implement and monitor public 
investment. The Authorities will take account of last year’s Public E xpenditure and Financial 
Accountability (PEFA) Assessment Report, which c oncluded that ‘the leve l of fiduciary risk 
is low enough for external partners to consider budget support for Kosovo. 
2.2. Budget lines, legal bases and remarks 
The global amount needed (EUR 40 million in  2009) will be included under article 22 02 02 
"Transition and institution-build ing assistance to potential ca ndidate countries" of title 22 
"Enlargement", chapter 02 "Enlarge ment process and strategy".  
Article 22 02 02 Transition and institution- building assistance to potential candidate 
countries 
Figures 
Appropriations PDB 2009 Amending Letter No 1 New amount 
Commitments Payments Commitments Payments Commitments Payments 
429 330 000 225 489 000 40 000 000  469 333 000 225 489 000 
As already mentioned, EUR 40 million in commi tment appropriations are requested as a 
front-loaded assistance under the 2009 budget.  
3. P ALESTINE  
3.1. Background 
As measured in mid-year 2008, the overall econo mic and social trends in the occupied 
Palestinian territory are in d ecline over the expectations fo rmulated at the end of 2007. The 
Palestinian Donors´ Conferen ce held in December 2007, co-chaired by the Commission, 
stressed the shared responsib ility for Palestinia n economic growth of the Palestinian 
Authority (PA) (as described in the Palestin ian reform and Development Plan 2008-2010), 
Israel (for lifting restrictions on movement  and access) and the donor community (financial 
assistance). According to the May 2008 Wo rld Bank report for the Ad Hoc Liaison 
Committee (AHLC), “the virtuous cycle of economic growth aris ing from parallel actions by 
 
EN 7   EN the PA, Israel and the donor s has not been realised”.8 As a result, the actual GDP growth for 
2008 will be much lower than projected in the Palestinian Reform and Development Plan 
(3.5 %), and possibly only around 1 % (still under the a ssumption that there will be a slight 
reduction of the restrictions during the second part of the year). At  this stage, the growth rate 
for 2009 forecast by the International Monetary  Fund (IMF) is 3,6 %, but this also will 
probably have to be reviewed downward. 
While the PA pursued its reform programme and donors have provided generous financial 
contributions, restrictions by the Government of  Israel on Palestinian movement and access 
continue to weigh heavily on the Palestinian econo mic outlook. The small reduction of a few 
checkpoints in the West Bank did not create th e necessary freedom of movement. The five 
crossing points to transfer commercial goods us e a back-to-back cargo transfer system, which 
is unlikely to accommodate a significantly higher volume of traffic. The prospect of opening 
the Gaza crossings, including Karni considered  the lifeline for the Gazan economy, remains 
uncertain following the truce between Israel an d Hamas in June 2008. Current flows to Gaza 
are limited to humanitarian supplies and fuel.  
Other economic indicators in the occupied Palestin ian territory have also deteriorated further. 
Unemployment stood at nearly 23 % in 2007, up fr om only 10 % before the beginning of the 
Second Intifada. The unemployment rate is the hi ghest in Gaza, at nearly 33 % of the active 
work force, and at 19 % in the West Bank. 70 % of households in Gaza and 56 % in the West Bank live under the poverty line (mid-2007; sour ce UNDP). In view of the strict closure 
regime in Gaza, the current deep poverty rate  is now even above the 35 % reported in 2006. 
38 % of the Palestinian population is food insecure (56% in Gaza)
9. Furthermore, a double 
digit inflation rate is foreseen for 2008.  
The deficit of the current budget of the Pales tinian Authority is expected to reach USD  766 
million in 2008. The PA made efforts to contro l the public sector wage bill and reduce net 
lending (subsidies to electricity a nd fuel utilities). On the other hand, the PA made an effort to 
reimburse all arrears to the private and public  sector accumulated over the period 2006-2007 
by the Hamas-led Government. While this has led to extraordinary financ ial expenses in 2008, 
the early repayment of all arrears will decrease  the burden on PA’s expenditure in 2009 and 
2010.  
Rationale for Community intervention  
It is difficult to estimate the precise overall need s in 2009 at this stage, especially with regard 
to recurrent expenditures. The IMF will make its revised forecast known only before the next Ad Hoc Liaison Committee meeting planned fo r 22 September. A number of contextual 
factors need to be taken into account, in particular uncertain ties about the outcome of the 
political process launched in A nnapolis by the end of 2008, po ssible delays in organising 
Palestinian presidential electi ons scheduled for January 2009, and prospects for substantial 
changes on the ground, in particul ar with regard to movement and access restrictions, which 
have major implications for economic activity.  
If the current pattern of developments continues, the Commission expects for 2009 the 
situation to remain stable or  marginally improve in the We st Bank, but probably worsen 
                                                
 
8 Implementing the Palestinian Reform and Development Agenda, Economic Monitoring Report to the 
AHLC, May 2nd, 2008. 
9 WFP/UNRWA/FAO survey on food security in the Occupied Palestinian Territories. 
 
EN 8   EN further in the Gaza Strip. Therefore, the need s of the Palestinian population are likely to 
remain high.  
In view of the current situati on and high needs set out above a nd considering the large deficit 
of the PA, pressure for external  assistance, in particular fr om the European Union, as the 
largest donor to the Palestinians, will remain high.  
The Action Strategy launched in November 2007 in the context of the Annapolis process put 
a major focus of the European Union’s commit ment on assisting Palestinian state-building 
efforts as well as providing suppor t for the transition period. The General Affairs and External 
Relations Council (GAERC) of May 200810 confirmed that “the EU remains committed to 
assisting Palestinian state-building efforts acro ss a broad range of areas” and stressed “the 
need to deliver on pledges made at the Intern ational Donor's Conference for the Palestinian 
State in Paris last December”. 
Taking into account the above factors, Commissi on support to the Pa lestinians in 2009 is 
envisaged for: 
– A high level of financial assistance to the Palestinian Authority, in coordination with 
other donors and international organisations. These actions will continue to aim at improving the fiscal stability of the Palestinian Authority, and thereby at 
strengthening its capacity to deliver services to the Palestinian population and 
enforce law and order (support to current expenditure is fore seen at EUR 14 
million/month i.e. EUR 168 million per annum). 
– Building the institutions of the Palestinian Authority. The target of the assistance is 
to strengthen the PA ministries and othe r institutions in view of Palestinian 
statehood. Specific focus will be given to th e Palestinian cap acity building in the area 
of civil security and the ru le of law, where the Europ ean Union’s major role was 
confirmed at the Berlin conference held in June 2008. The Commission will continue 
to provide funding for specific projects in  support of measures launched by the 
Quartet Representative (Institution building, Civil Society, Rule of Law, Education, 
Health is foreseen at EUR 18 m illion and Twinning at EUR 2 million). 
– Support to the East Jerusalem institutions. Th e status of East Je rusalem as possible 
capital of the future Palestinian state is of paramount political importance (support to 
current expenditure is foreseen at EUR 2 million). 
– Possible measures to support the implement ation of an agreement on final status 
issues that could be due to  be finalised by December 2008. This would constitute the 
main result of the Annapolis  Process supported by the Euro pean Union, although the 
detailed needs will not be known until the en d of the year, in view of the secrecy 
surrounding the bilateral negotiations (no amount planned currently). 
– Development projects. The Commission will continue and expand its programme of 
infrastructure and other development proj ects to support the implementation of the 
Palestinian Reform and Development Plan and to resume development activities in 
the Gaza Strip as soon as conditions allow (s upport to current expenditure is foreseen 
                                                
 
10 Council of the European Union, document 9674/1/08 of 26.6.2008. 
 
EN 9   EN for infrastructure at EUR 26 million and for Gaza Business Regeneration at EUR 18 
million). 
– United Nations Relief and Works Agency (UNR WA), in its five fi elds of operation, 
and in particular in Gaza. Rising food pric es across the countries of the region, and 
current pace of developments in Gaza point to the fact that even more people may be 
dependent on external assistance and the pressure on UNRWA is likely to increase 
(support to current expenditure is foreseen at EUR 66 million). 
The situation in the occupied Palestinian territo ry continues to be volat ile and this makes the 
task of estimating needs in the medium term  difficult. In recent  years (2008, 2007 and 2006), 
the amounts allocated initially for the Palestinians were systemati cally below the actual needs. 
The Commission had to call on other budget line s within the Community budget to cover the 
gap.  
In 2006 , the assistance to the Palestinians on “MEDA”, “Peace Agreement” and “UNRWA” 
lines reached EUR 222 million, a large part of  which being allocated to the Temporary 
International Mechanism and UNRWA.  
In 2007 , the assistance to the Palestinians on th e ENPI budget line for Palestine, UNRWA and 
Peace Process (which corresponds to the “MEDA”, “Peace Agreement” and “UNRWA” 
budget lines under MEDA Regulation) was increased from an initial EUR 172 million to EUR 
447 million. 
In 2008 , the initial alloca tion of EUR 300 million on the EN PI budget line for Palestine, 
UNRWA and Peace Process was reinforced to EUR 380 million, to respond to Prime Minister 
Fayyad’s request to the donor community to fund the increasing deficit for recurrent 
expenditures. 
In light of the need to conti nue a realistic level of funding in  2009, taking account of the state 
of Palestinian public finances and the need for assistance by the Palestinian Authority 
government, the Commission proposes to incr ease the budget line 19 08 01 02 in 2009 by 
EUR 139 million to re ach EUR 300 million. 
As regards payment appropriations, the amount  requested in the PDB (EUR 100 million) 
should also be reinforced in line with the Co mmitment appropriations a nd past execution. An 
additional EUR 180 million is estimated necessary. 
In the course of the year 2009, the Commission may, as in previous years,  have to reassess the 
situation in view of budget execution, eligibi lity of the different types of assistance to 
Palestine under the various budgetary instruments, and efforts made by other donors. 
3.2. Budget lines, legal bases and remarks 
The additional amount needed (EUR 139 million in  commitment appropriations in 2009) will 
be included under item 19 08 01 02 "Europe an Neighbourhood and Part nership financial 
assistance to Palestine, the peace proces s and UNRWA" of title "External Relations", 
chapter 19 08 "European Neighbourhood policy and relations with Russia". 
Item 19 08 01 02 European Neighbourhood a nd Partnership financial assistance to 
Palestine, the peace process and UNRWA 
 
EN 10   EN Figures 
Appropriations PDB 2009 Letter of amendment No 1 New amount 
Commitments Payments Commitments Payments Commitments Payments 
161 000 000 100 000 000 139 000 000 180 000 000 300 000 000 280 000 000 
As mentioned above, EUR 139 million are requested in order to satisfy needs for financial 
assistance to the Palestinian Authority especially focusing on direct financial assistance to the government and institution building of the futu re Palestinian state as  declared during the 
GAERC meeting in May 2008.  
4. F
OOD AID 
As mentioned in the 2009 PDB, the sustained in crease of world food pr ices will affect the 
capacity of the European Union to address food ai d crises. In order to cover the most pressing 
humanitarian food needs and for the European Un ion to meet its international obligations and 
maintain the planned burden share in respect of support to food aid, the Commission intends, 
where necessary, to make use of  all budgetary instru ments available, in cluding the Emergency 
Aid Reserve.  
In addition, the Commission adopted in July 2008 a draft regulation estab lishing a facility for 
rapid response to soaring food pr ices in developing c ountries. Such a faci lity is primarily 
aimed at supporting agriculture in developing countries hen ce enabling them to enhance 
production levels. It will also help  those countries to mitigate the negative effects of high food 
prices on the poorest.  
5. G EORGIA  
On 1 September 2008, the extrao rdinary European Council stat ed the European Union is 
ready to commit itself to support every effort to  secure a peaceful and lasting solution to the 
conflict in Georgia. To that end, a fact finding mission has b een decided with the task of 
helping to gather information and defining th e modalities for an increased European Union 
commitment on the ground, under the European Security and Defence Policy.  
The Commission has already supplied emergenc y aid in response to the crisis. Both the 
European Council and Parliament have declared  the European Union should be prepared to 
supply aid for reconstruction in  Georgia and to support confidence building measures and the 
development of regional cooperation. The Euro pean Council has called for an international 
donors conference to take place to  assist reconstruction in Georgia. The Commission has 
already started preparations for such a conf erence. Once the need assessment is completed 
and the necessary burden-sharing among donors ta kes shape, the Commission will reflect the 
resulting budgetary implications in  the budgetary procedure accordingly. 
6. E FFECT ON THE HEADING 4 MARGIN  
The combined additional needs for heading 4 amount to EUR 179 million in commitments, of 
which EUR 40 million for Kosovo and EUR 139 millio n for Palestine. This leaves a margin 
 
EN 11   EN under the ceiling of EUR 64 million for heading 4. The additional payment appropriations are 
EUR 180 million for Palestine. 
7. C ONSULAR COOPERATION  
Due to the increasing significance  and frequency of major crises in third countries, the 
European Union institutions and the Member  States have initiated reflection on the 
reinforcement of their capacity for crisis response, including in the area of consular 
cooperation. The guidelines for the consular prot ection of the EU citizens in third countries, 
which have been adopted by Council in June 200611, foresee that the "Commission 
delegations should be included in contingency pl anning. It is understood that – at the request 
of the Presidency and as appr opriate – Commission delegations/ representations could provide 
logistic support to Member States' missions, especially during crises." 
Based on article 20 of the TEC, concerning the protection of EU citizens not represented in 
third countries by their Member States, and on article 20 of the TEU, providing a role for the 
Commission delegations in the implementation of  the TEC article, the possible actions could 
include, for example, placing personnel, office space or material at a disposal of Member 
States' consulates; participation in the renting of transport, material or space; or logistic 
support. 
As these actions could go beyond the possibilitie s for the use of the administrative support 
expenditure of the delegations, which is strictly limited to th e needs of functioning of the 
delegations, the Commission proposes to cr eate a specific budget li ne 19 06 06 Consular 
cooperation on the basis of article  49, §6 point d) of the financ ial regulation (specific powers 
of the Commission under the Treaties), which would allow for financing of potential 
operational expenditure in favour  of European citizens.  
The annual amount necessary for this potential e xpenditure would be limited (in the range of 
EUR 50 000 to EUR 500 000), and cover actions  undertaken in third countries.The budget 
line is proposed with a token entry (p.m.) fo r both commitment and payment appropriations. 
If necessary a transfer could be made within chapter 19 06 Crisis response and global threats 
to security. 
8. E DUCATION , AUDIOVISUAL AND CULTURE EXECUTIVE AGENCY (EACEA) 
8.1. Set-up and extensions 
On 14 January 2005, the Commission adopted Decision 2005/56/EC setting up the Executive 
Agency for the management of Community action in the fields of education, audiovisual and 
culture (EACEA). 
The mandate of EACEA was extended, for the first time, by Commission Decision 
2007/114/EC of 8 February 2007 to include management of: 
- the new generation of programmes previously  delegated to the Agency (MEDIA 2007, Long 
Life Learning (LLL), Culture, Youth in Action, Europe for Citizens);  
                                                 
11 Council of the European Union, document 10109/2/06 of 16.6.2006. 
 
EN 12   EN - the projects in the fields of education,  vocational training and youth, governed by the 
agreements made in these fields by the European Community and the United States of America and Canada;  
- other programme strands, in particular the Erasmus Mundus  External Cooperation Window 
(including Latin America, Asia and the Balkans).  
A second extension of the mandate of the Agency  was proposed to cover the remaining files 
of the Media II programme (1996-2000). This proposal was accompanied by a request for the 
human resources required for the Erasmus Mun dus External Cooperatio n Windows relating to 
Latin America, Asia and the Balkans, in orde r to implement the extension of the Agency's 
mandate agreed upon in 2007.  
After approval by the Committee on Executive Agencies (CREA) on 15
 April 2008, and after 
the positive opinion of the European Parlia ment's Committee on Budgets (COBU) on 29 May 
2008, the mandate of the Agency was indeed ex tended to cover the re maining files of the 
Media II programme (1996- 2000) by Commission Decision C (2008)2554 of 12 June 2008.  
An external cost-benefit study  finalised in April 2008 demonstr ated that recourse to the 
Agency is the best solution fo r managing the Tempus programme (fourth phase and closure of 
the third phase) and for strengthening cooperatio n in the areas of edu cation and youth with the 
industrialised countries and othe r high-income countries and te rritories (ICI) in order to 
include new activities and bilate ral projects with Australia,  New Zeeland, Japan and South 
Korea. Therefore, the Commission has proposed a third extension of the mandate of the Agency to Community actions in the field of TEMPUS III and IV programmes and the ICI 
programme. This proposal was submitted to the Regulatory Committee for Executive Agencies which gave a favourable opinion on 7 July 2008 and was also submitted in accordance with the working arrangements appli cable to the creation/extension of executive 
agencies, to the opinion of the European Parliament Committee on Budgets (COBU).  
8.2. Budgetary implications 
The additional tasks given to EACEA related to  the mentioned extensions will lead to an 
increase in the subsidy of th e Executive Agency, and will be  covered by appropriations under 
items 19 01 04 30 EACEA – Subsidy for External Relations programmes and 22 01 04 30 EACEA – Subsidy for programmes under heading 4 in the Enlargement policy area. The amounts concerning the last extension (Tempus III-IV and ICI) are put in reserve pending of 
its approval by the Budgetary Authority.  
Taking into consideration these two extensions in 2008, the subsidy by programme and by 
budgetary line under heading 4 is broken down as follows: 
 
EN 13   EN (in million EUR) 
Budget line Programme 2009 
19 01 04 30 - Erasmus Mundus External Cooperation Window(European 
Neighbourhood and Partnership Policy, ENPI and 
Development Cooperation Instrument, DCI ) 
- ICI bilateral education cooperation - Tempus (ENPI and DCI) + 3.794
12 
22 01 04 30 Western Balkans Youth 
Erasmus Mundus External Cooperation Window 
Tempus (Instrument for Pre- accession Assistance, IPA) + 1.41013 
TOTAL OF 
EXTENSIONS  + 5.204 
These increases have to be covered by the ex isting envelopes of the operational programmes 
they manage as follows: 
(in million EUR)  
Budget line Programme 2009 
19 05 01 Cooperation with Industrialised non-member countries (ICI) - 0.203 
19 08 01 01 European Neighbourhoud and Partnership policy – Financial 
cooperation with Mediterranean Countries - 0.847 
19 08 01 03 European Neighbourhoud and Partnership policy – Financial 
cooperation with Eastern Europe - 1.180 
19 09 01 Cooperation with developing countries in Latin America - 0.190 
19 10 01 01 Cooperation with developing countries in Asia  - 0.310 
19 10 02 Cooperation with the developing countries of Central Asia - 0.333 
Chapter 40 01 Reserve (Education, Audiovisual and Culture Executive 
Agency – Subsidy for External Relations programmes) - 0.731 
Sub-total  - 3.794 
22 02 07 01 Regional and horizontal programmes (IPA) - 1.410 
TOTAL OF 
EXTENSIONS   - 5.204 
The establishment plan of the agency proposed in the 2009 Preliminary Draft Budget needs to 
be amended in order to add eight temporary agent posts in 2009 fo r the second extension. 
9. E XECUTIVE AGENCY FOR THE PUBLIC HEALTH PROGRAMME (PHEA)  AND TRANS -
EUROPEAN TRANSPORT NETWORK EXECUTIVE AGENCY (TEN-T  EA) 
On 15 April 2008, the Committee on Executive Ag encies (CREA), established by Article 24 
of Council Regulation (EC) No 58/200314, approved the extension of the mandate of the 
Executive Agency for the Public Health Programme (PHEA), and the Trans-European Transport Network Executive Agency (TEN-T  EA). This was followed on 29 May by the 
approval of the European Parliame nt's Committee on Budgets (COBU). 
                                                
 
12 Of which EUR 2.563 on the reserve subject to the approval of the second extension in 2008 by the 
budgetary authority. 
13 Of which EUR 1.314 on the reserve subject to the approval of the second extension in 2008 by the 
budgetary authority. 
14 Council Regulation (EC) No 58/2 003 of 19 December 2002 laying  down the statut e for executive 
agencies to be entrusted with certain tasks in the management of Community programmes (OJ L 11, 
16.1.2003, p. 1). 
 
EN 14   EN By Commission Decisions C (2008)2939 of 20 June 2008 and C(2008)3 465 of 11 July 2008, 
the mandate of these Agencies were further ex tended to cover respectively the management of 
the Consumer Policy Programme 2007-2013 and of the Community food safety training 
measures and to take responsibility for the ma nagement of transport projects supported by the 
new TEN-T Programme 2007-2013. 
The 2009 preliminary draft budget foresaw appropria tions, as subsidy, al located to these two 
agencies which were entered in  reserve pending approval by th e budgetary authority. As this 
condition is now met and the extension decided,  it is now proposed to transfer the following 
amounts from the reserve 40 01 40 to the corresponding lines. 
Agency for Health 
and Consumers 17 01 04 30 
17 01 04 31 EUR 1 710 000 
EUR 1 100 000 
Agency for Trans-
European Network 06 01 04 31 
 EUR 9 794 000 
 
EN 15   EN SUMMARY  TABLE  BY HEADING  OF THE  FINANCIAL  FRAMEWORK  
Financial framework 
Heading/subheading 2009 Financial Framework PDB 2009 AL 1/2009 PDB 2009 + AL No 1/2009 
 CA PA CA PA CA PA CA PA 
1. SUSTAINABLE GROWTH        
1a. Competitiveness for growth and 
employment 11.272.000.000  11.689.966.000 10.285.190.500   11.689.966.000 10.285.190.500 
1b. Cohesion for growth and employment 48.428.000.000  48.413.884.669 34.914.134.166   48.413.884.669 34.914.134.166 
Total 59.700.000.000  60.103.850.669 45.199.324.666   60.103.850.669 45.199.324.666 
Margin1   96.149.331       96.149.331   
2. PRESERVATION AND 
MANAGEMENT OF NATURAL 
RESOURCES         
Of which market related expenditure and 
direct payments 46.679.000.000  42.860.252.000 42.814.219.000   42.860.252.000 40.825.600.500 
Total 59.639.000.000  57.525.729.686 54.834.932.000   57.525.729.686 54.834.932.000 
Margin2 2.113.270.314 2.113.270.314  
3. CITIZENSHIP, FREEDOM, 
SECURITY AND JUSTICE   
3a. Freedom, Security and Justice 872.000.000  839.125.000 596.670. 000   839.125.000 596.670.000 
3b. Citizenship 651.000.000  628.733.000 669.010. 000   628.733.000 669.010.000 
Total 1.523.000.000  1.467. 858.000 1.265.680.000   1.467.858.000 1.265.680.000 
Margin    55.142.000       55.142.000   
4. EU AS A GLOBAL PLAYER3 7.440.000.000  7.440.432.000 7.579.456.769 179.000.000 180.000.000 7.619.432.000 7.759.456.769 
Margin   243.568.000    59.786.000   
5. ADMINISTRATION4 7.699.000.000  7.655. 255.982 7.655.255.982   7.655.255.982 7.655.255.982 
Margin   121.744.018    121.744.018   
6. COMPENSATION 210.000.000  209.112.912 209.112.912   209.112.912 209.112.912 
Margin   887.088    887.088   
TOTAL 136.211.000.000 123.858.000.00 0 134.402.239.249 116.743.762. 329 179.000.000 180.000.000 134. 581.239.249 116.923.762.329 
Margin     2.630.760.751 7.436.237.671    2.446.978.751 7.256.237.671 
1 The European Globalisation adjustment Fund (EGF) is not included in the calculation of the margin under Heading 1a. 
2 The European Union Solidarity Fund (EUSF) amount is entered over and above the relevant headings as foreseen by the IIA of 17  May 2006 (OJ C 139 of 14.6.2006). 
3 The 2008 margin for heading 4 does not take into account the appropriations related to the Emergency Aid Reserve (EUR 244 mil lion). 
4 For calculating the margin  under the ceiling for heading 5, account is taken of the footnote (1) of the financial framework 2 007-2013 for an amount of EUR 78 million for 
the staff contributions to the pensions scheme.