EN    EN EN 
EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 28.10.2008 
SEC(2008) 2707 final 
  
AMENDING LETTER No 2 
TO THE PRELIMINARY DRAFT BUDGET 2009 
STATEMENT OF EXPENDITURE BY SECTION 
Section III - Commission 
EN 2   EN AMENDING LETTER No 2 
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, 
– the Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the 
Financial Regulation applicable to the general 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 2 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. Preservation and Management of Natural Resources .................................................. 6 2.1. Summary Table ............................................................................................................ 6  
2.2. Agricultural Expenditure (market-relate d expenditure and direct payments).............. 6 
2.2.1 Overall Picture .......................................................................................................... ... 6 
2.2.2 Detailed Comments...................................................................................................... 7 2.3. Other Actions: Rapid response to food pri ce increases in developing countries....... 12 
2.4. Changes to the nomenclature and budgetary remarks................................................ 14 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. INTRODUCTION  
The Interinstitutional Agreement on budgetary discipline and sound financial management of 
17 May 20063 provides that, "if it considers it nece ssary, the Commission may present to the 
two arms of the budgetary author ity an ad hoc letter of am endment to update the figures 
underlying the estimate of agricultural expend iture in the preliminary draft budget (PDB) 
and/or to correct, on the basis of the most r ecent information available concerning fisheries 
agreements in force on 1 Ja nuary of the financial year concerned, the amounts and their 
breakdown between the appropriations entered in  the operational items  for international 
fisheries agreements and those entered in reserve. " This letter of amendment must be sent to 
the budgetary authority by the end of October. 
This ad hoc amending letter (A L No 2/2009) to the preliminar y draft budget 2009, contains a 
careful, line by line update of the estimated need s for agricultural expenditure. In addition to 
changing market factors, the AL also incorp orates legislative decisions adopted in the 
agricultural sector since the PD B was drawn up, revised estimates of needs for some direct 
payments, as well as any proposals, which are expected to have effect during the coming 
budget year. 
The AL is based, in the same way as the PDB itself, on the needs of the Community as a 
whole. As far as the market measures ar e concerned, no breakdown of the appropriations 
between Member States is available. In addition,  it must be stressed that these appropriations 
are to be understood as a forecast and not as an objective of expenditure. The actual expenditure will depend, in particular, on actual  market conditions, on the actual euro-dollar 
exchange rate, and on the rhythm of the payments by Member States. Since this is 
compulsory expenditure, whatever the amount  a Member State is obliged to pay in 
accordance with the regulations – within the li mits set by the financial framework - will be 
reimbursed in full. 
For clarification and tr ansparency purposes, some budgetary  comments have been updated.  
According to the present Amending Letter, overa ll appropriations for He ading 2 are estimated 
at EUR 56 495,5 million, leaving a margin of EUR 3 143,5 million in commitment appropriations below the corresponding ceiling of the Financial Framework.  
The commitment appropriations for agricultur al expenditure (including veterinary and 
fisheries expenditure financed under EAGF ) amount to EUR 41 579,9 million, a reduction of 
EUR 1 280,4 million compared to the PDB 2009.  
As far as the international fisheries agreem ents are concerned, no change is foreseen. 
This amending letter also proposes the creati on of new budget lines for the "Food Facility" 
(rapid response to food price increases in developing countri es) in 2009, pending the adoption 
of the legal base. 
As announced by the Commission at the Agri culture Council of 29 September 2008, the 
Commission is presently revisi ng the 2009 budgetary needs for th e eradication of bluetongue 
disease, at the request of many Member Stat es. After analysis of past execution and 
                                                
 
3 OJ C 139, 14.6.2006, p.1. 
EN 5   EN assessment of the situation, the Commission will  in early 2009 make the necessary proposals 
for adjusting the 2009 budget with an additional amount of approximately EUR 100 million on top of the amount of EUR 62 million proposed  in the PDB 2009, as part of a multi-annual 
strategy for dealing with this disease in a sustainable way. 
 
EN 6   EN 2. PRESERVATION AND MANAGEMENT OF NATURAL RESOURCES  
2.1. Summary Table 
  PDB 2009 AL 2/2009 Difference 
EUR million (a) (b) (c)=(b)-(a) 
  CA PA CA PA CA PA 
Total Appropriations Heading 2 57 525,7 54 834,9 56 495,5 54 45 7,2 -1 030,2 -377,7
Ceiling Financial Framework 59 639   59 639  -  
margin 2 113,3   3 143.5  1 030.2  
Of which         
          
Agricultural expenditure (market related 
expenditure and direct payments)4 42 860,3 42 814,2 41 579,9 41.536,4 -1 280,4 -1 277,9 
       
Rapid response to food price increases   250,0 900,0 +250,0 +900,0 
2.2. Agricultural Expenditure (market-related expenditure and direct payments) 
2.2.1 Overall Picture The purpose of the AL No 2/2009 is to ensure that the agricultural budget is based on the 
most up-to-date economic data and legislative framework. By the month of September, the 
Commission has at its disposal a first indication of the level of production (harvests) for 2008, 
which is the basis for any reliable estimate of the budgetary needs for 2009. 
As in the past, the Commission has carefully reviewed all its estimates of agricultural 
expenditure line by line. Besides taking into account market factors, this AL also incorporates 
any legislative decisions adopted in the agricu ltural sector since the PDB was drawn up, as 
well as proposals. 
Total needs are increased by EUR 361 million. Th is is mostly due to additional foreseen 
needs in chapter 05 02 (Intervention in Agricu ltural markets: + EUR 421 million), 05 07 and 
05 08 (+ EUR 26,3 million) and to some marginal savings foreseen in chapter 05 03 (Direct 
Aids: - EUR 87 million) 
However, the total commitment appropriations requested for Agricultural Expenditure 
(EAGF) are EUR 41 579,9 million, less than estimated in the PDB 2009 (- EUR 1 280,4 million). This change must be inte rpreted taking into account the existence of 
the assigned revenue and its modi fications between PDB and AL.  
In the PDB, appropriations requested from the Budgetary Authority were lower than 
estimated needs because part of the needs were covered by EUR 735 million of revenues 
forecast to be generated in 2009 and assigned to EAGF.  
Appropriations for this AL are lower than es timated needs because of EUR 2 376 million of 
the needs being covered by revenues assigned to EAGF. The increase of EUR 1 641 million 
in assigned revenue, in comp arison with PDB 2009, is due  
                                                
 
4 European Agricultural Guarantee Fund (EAGF) expenditure, including EUR 30 million under title 11 
Fisheries and Maritime Affairs and EUR 315 milli on under title 17 Health and Consumer Protection. 
EN 7   EN – To an updated estimation of the assigned revenue that will be  generated in 2009 
(+ EUR 307 million for a total of EUR 1 042 million), and 
– Because of unspent assigned revenue of EU R 1 334 million of 2008 that  will be carried 
over (out of an estimated total revenue of EUR 1 534 million in 2008). 
2.2.2 Detailed Comments 05 02 Interventions in agricultural markets
 (appropriations – EUR 8,7  million)  
needs in preliminary draft budget: EUR 3 548 million 
appropriations requested in preliminary draft budget: EUR 3 463 million 
estimated assigned revenue available in 2009 in preliminary draft budget: EUR 85 million  
needs after letter of amendment: EUR 3 969 million 
appropriations requested after lett er of amendment: EUR 3 454 million 
estimated assigned revenue available in 2009  after letter of amendment: EUR 515 million 
The hypotheses underlying this Amending Letter (A L) for agricultural markets do not change 
significantly compared to the PDB. Favourable prospects for most agricultural markets are 
still prevailing. The reason for th e increased needs is twofold: residual amount s to be paid in 
2009 for market expenditure which was not paid in the 2008 budget as foreseen, due to a slower than expected rhythm of payments, and the increased needs for food programmes. 
The decrease in appropriations of EUR 8,7 mil lion is to be explained by the increase of 
assigned revenue (from EUR 85 million to EUR 515 million) and by some increase of the needs in various sectors.  
It is first to be noted that the reduction in appropriations for fruits and vegetables  (-
 EUR 341 million) mostly reflects an estimate revised upwards for revenues assigned to that 
article (+ EUR 430 million). Actually the need s for fruits and vegetables increase by 
+ EUR 89 million compared to the PDB. This increase is mainly due to delayed advance 
payments by Member States for operational funds for producer organisations for the 2008 
plans (first plan after the reform  of the market organisation for fr uits and vegetables) that were 
initially expected for 2008 but will now have an impact on the 2009 budget. 
Increases are also significant for refunds on non-Annex 1 products (+ EUR 57 million), pig 
meat  (+ EUR 42 million) and sugar  (+ EUR 79 million). In particular for sugar, budgetary 
appropriations increase as expenditure in the 2008 budget is paid at a slower rate, and as 
export refunds absorb more money than was assumed in the PDB 2009  because outstanding 
payments from the transitional marketing year  2006/07, which lasted three month longer than 
usual, need to be covered. 
The AL shows also a considerable increase for food programmes  (+ EUR 185 million) 
because of the updated actual annual distribution plans for 2009, as communicated by Member States. Furthermore, appropriations were revised upwards for promotion measures 
(+ EUR 8 million), settlement of disputes  (+ EUR 25 million), as well as for EAGF 
operational technical assistance (+ EUR 1,3 million). 
EN 8   EN There is also a slight adjustment in relation with the application of the wine reform (-EUR 
0,16 million) with a equal increase of rural development (budget line 05 04 05 01). 
The comments below explain the main differenc es between the appropria tions of the PDB and 
those of the AL for some sectors. 
05 02 03 – Refunds on non-Annex 1 products  (appropriations + EUR 57 million) 
appropriations in preliminar y draft budget: EUR 70 million 
appropriations after letter of amendment: EUR 127 million 
Most of the appropriations foreseen (EUR 127  million) are for export refunds for products 
incorporating sugar. Compared to the PDB, the difference of some EUR 57 million concerns new certificates granted up to the end of September 2008 and not foreseen in the PDB. 
Furthermore, the validity of these certificat es was extended from five to ten months, 
explaining the impact on the 2009 budget. However, it is still assumed that no new export certificates will be issued as from 1 October 2008.  
05 02 04 – Food programmes
 (appropriations + EUR 185 million) 
appropriations in preliminar y draft budget: EUR 315 million 
appropriations after letter of amendment: EUR 500 million 
Appropriations increase because of the updated n eeds for the distribution of food to the most 
deprived persons in the Community. 
The PDB was established with the hypothesis to cover the same quantities of food granted in 
2008, taking account of only the food price infla tion. The AL must take account of the actual 
annual distribution plan for 2009 as communica ted by Member States. The plan, which is 
worth EUR 500 million, is based on the latest notification from Member States, aiming to 
improve the current food distribution progr amme for the most deprived persons. 
05 02 05 – Sugar  (appropriations + EUR 79 million) 
appropriations in preliminar y draft budget: EUR 103 million 
appropriations after letter of amendment: EUR 182 million 
Appropriations for the sugar sector incr ease from EUR 103 million in the PDB to 
EUR 182 million in the AL due to two items: 05 02 05 01 Export refunds (+ EUR 75 million) 
and 05 02 05 08 Storage measures for sugar (+ EUR 4 million). 
Regarding export refunds, the AL still reta ins the hypothesis of no export refund for the 
campaign 2008/2009. However on top of the paym ents already foreseen for the campaign 
2007/2008, additional appropriations are needed to  cover refund paymen ts for the campaign 
2006/2007 (transition marketing year which excepti onally lasted fifteen months from 1 July 
2006 until 30 September 2007), which were not ma de, as originally expected, from the 2008 
budget, with resulting under-i mplementation this year.  
For storage of sugar, the hypothesis underlining th e PDB foresaw a level of white sugar, at 1 
October 2008, of zero tonnes. In view of the current market situation 334 000 tonnes are in 
the stocks at the beginning of the 2008/2009 peri od. Financing and technical costs to manage 
these quantities of sugar explain the increase.  
EN 9   EN 05 02 08 – Fruit and vegetables  (appropriations - EUR 341 million)  
needs in preliminary draft budget: EUR 770 million 
appropriations in preliminar y draft budget: EUR 685 million 
estimated assigned revenue in pre liminary draft budget: EUR 85 million 
needs after letter of amendment: EUR 859 million appropriations after letter of amendment: EUR 344 million 
estimated assigned revenue after le tter of amendment: EUR 515 million 
The AL proposed appropriations for the fruit an d vegetables sector much lower than the PDB 
(- EUR 341 million). However, this is the net result of somewhat increasing needs (+ EUR 89 million) and much higher estimates for revenue assigned to this article (+ EUR 430 million), which reduces budget appropriations accordingly. 
The increasing needs are mainly due to revised estimates for payments to operational funds 
for producer organisations (+ EUR 95 million), talking into account the latest available information from Member States regardi ng plans 2008 and 2009 as well as the level of 
advance payments made in 2008 for the 2008 plan s. Further small increases are proposed for 
items 05 02 08 11 Aid to producer groups for pr eliminary recognition (+ EUR 4 million) and 
05 02 08 02 Compensation for withdrawals and buying-in (+ EUR 1 million), while 
appropriations needed for item 05 02 08 09 Comp ensation to encourage pr ocessing of citrus 
fruits are reduced (- EUR 11 million). 
As far as assigned revenue is  concerned, the PDB has been drafted on the basis of an 
estimated amount of EUR 85 million. Taking into  account budget execution in 2008, part of 
the revenue generated in 2008 will not be used a nd carried over into 2009. This amount adds 
to the updated revenue estimate for 2009. Overall, the AL is now calculated at an amount of 
EUR 515 million of revenue assigned to articl e 05 02 08, reducing budget appropriations for 
item 05 02 08 03 Operational funds  for producer organisations. 
It is worth noting that a new line (05 02 08 12)  with a p.m. is introduced for the new School 
Fruit Scheme, in order to reflect the proposal . However, the programme will start from the 
school year 2009/2010. EAGF – operational technical assist ance (05 08 09) has been 
increased by EUR 1,3 million in order to cover advanced prep aratory work (networking and 
conferences) for the scheme. 
05 02 09 – Products of the wine-growing sector
 (appropriations - EUR 59 million) 
appropriations in preliminary draft budget: EUR 1 406 million 
appropriations after letter of amendment: EUR 1 347 million 
Appropriations for the wine sect or decrease by EUR 59 million, resulting from two factors: 
updated figures on quantities involved taking into account the latest available information from Member States and balancing actual paym ents made in 2008 with payment forecasts for 
2009. The most significant changes concern storage of wine and grape must (-
 EUR 22 million), permanent abandonment premiums for areas under vines (- EUR 32 million) and distillation measures (-  EUR 12 million). However, appropriations for 
storage measures for alcohol increase slightly (+ EUR 8 million) because final stocks at the 
EN 10   EN end of 2008 will be somewhat hi gher than initially expected. This market measure has been 
abolished, but products from distillation st ill need to be put into storage. 
05 02 10 – Promotion (appropriations + EUR 8 million) 
appropriations in preliminar y draft budget: EUR 50 million 
appropriations after letter of amendment: EUR 58 million 
The appropriations for payments by Member St ates (budget item 05 02 10 01) are revised 
upwards on the basis of the latest da ta on budget execution for 2008, where higher 
implementation is foreseen (+ EUR 8 million). 
The same payment rhythm is estimated for 2009 with, in particular, an increase for the olive 
oil programmes. 
05 02 12 – Milk and milk products  (appropriations + EUR 2 million) 
appropriations in preliminar y draft budget: EUR 140 million 
appropriations after letter of amendment: EUR 142 million 
The small increase of appropriations (+ EUR 2 million) is due to the school milk scheme 
(item 05 02 12 08), reflecting a recent change of  legislation allowing additional milk products 
to enter the scheme. 
05 02 13 – Beef and veal  (appropriations + EUR 15 million) 
appropriations in preliminar y draft budget: EUR 36 million 
appropriations after letter of amendment: EUR 51 million 
The additional amount of EUR 15 million is need ed because of updated estimates as far as 
export refunds (05 02 13 01) are concerned (+  EUR 5 million), and for settling outstanding 
payments in the UK related to the 'Older Cattle Disposal Scheme' (OCDS), which are paid from budget item 05 02 13 03 Exceptional support m easures (+ EUR 10 million). Initially, it 
was expected that this amount would be pa id in 2008, but the actual payment is delayed. 
05 02 15 – Pigmeat, eggs and poultry, b ee-keeping and other animal products 
(appropriations + EUR 42 million) 
appropriations in preliminar y draft budget: EUR 161 million 
appropriations after letter of amendment: EUR 203 million 
Additional appropriations of EUR 46 million ar e needed to settle remaining payments 
following the introduction of export refunds fo r pig carcasses for a certain period in 2008. 
While the refund rate is set again to zero si nce August 2008, and most of the export refunds 
are paid from the 2008 budget, a part of the total expenditure will have an impact on the 2009 
budget taking into account the validity of export licences issues and the technical delay linked 
to reimbursement requests both at the level of economic operators and at the level of Member 
States. On the other hand, updated figures for th e temporary private stor age of pig meat allow 
to reduce somewhat appropriations fo r budget item 05 02 15 02 (- EUR 4 million).  
EN 11   EN 05 03 Direct Aids  (appropriations – EUR 1 298 million)  
needs in preliminary draft budget: EUR 39 727 million 
appropriations requested in preliminary draft budget: EUR 39 077 million 
estimated assigned revenue available in 2009 in preliminary draft budget: EUR 650 million  
needs after letter of amendment: EUR 39 640 million appropriations requested after lett er of amendment: EUR 37 779 million 
estimated assigned revenue available in 2009  after letter of amendment: EUR 1 861 million 
The appropriations for this chapter are re vised downwards by EUR 1 298 million. However 
the forecasted needs remain roughly at the leve l of PDB. The downward revision is mainly 
due to assigned revenue carried over from 2008 and the increase in estimated assigned 
revenue for 2009. The sum of assi gned revenue reduced from the line Single Payment Scheme 
(SPS) is EUR 1 861 million (an increase by EUR 1 211 million compared to the PDB). Other 
downward revisions are made to the Single Area Payment Scheme (SAPS) (-
 EUR 19 million) and other direct aids (- EUR 68 million). The decrease in needs for some direct aids, and the increase in assigned revenue, balance out  the increased costs from 
phasing-in of direct aids in EU-12.  
05 03 01 – Decoupled direct aids
 (appropriations - EUR 1 230 million) 
needs in preliminary draft budget: EUR 33 175 million 
appropriations in preliminary draft budget: EUR 32 525 million 
estimated assigned revenue in pre liminary draft budget: EUR 650 million 
needs after letter of amendment: EUR 33 156 million 
appropriations after letter of amendment: EUR 31 295 million 
estimated assigned revenue after le tter of amendment: EUR 1 861 million 
For the Single Payment Scheme (SPS) the assumption made in the PDB 2009 that Member 
States will execute the budget up to 98,5 % of the ceilings is maintained. Therefore, no 
changes are made concerning needs. Neverthe less, budgetary appropriations requested are 
decreased because of assigned revenues that are much higher than anticipated at the moment 
of the PDB.  
Concerning Single Area Payment Scheme (S APS), the annual budgeta ry forecasts were 
slightly reduced (- EUR 19 million) reflectin g under-execution experienced for budget year 
2008. 
EN 12   EN 05 03 02 – Other direct aids  (appropriations - EUR 68 million) 
appropriations in preliminary draft budget: EUR 5 990 million 
appropriations after letter of amendment: EUR 5 922 million 
The requested appropriations show some savings (- EUR 68 million) which are the result of 
marginal increases and savings at th e level of individual budget items. 
Savings are in particular foreseen fo r item 05 03 02 27 Aid for energy crops (-
 EUR 19 million), for item 05 03 02 36 Payments for specific types of farming and quality 
production (- EUR 13 million), for item 05 03 02 40 Area aid for cotton (- EUR 21 million) and for item 05 03 02 13 Sheep and goat premium (- EUR 6 million). Some other small savings concern items 05 03 02 05 (- EUR 2 million), 05 03 02 07 (- EUR 1 million), 05 03 02 19 (- EUR 4 million), 05 03 02 50 (- EUR 4 million) and 05 03 02 52 (- EUR 1 million), while small increases are proposed for items 05 03 02 06, 05 03 02 29 and 05 03 02 39 (+ EUR 1 million each one). 
These variations reflect mostly adjustments due to updated data received from Member States, 
specifying the current level of execution of the measure, and in formation, where available, on 
the 2008 applications payable in 2009. The PDB was mostly based on the ceilings. 
05 07 02 – Settlement of disputes
 (appropriations + EUR 25 million) 
appropriations in preliminary draft budget: p.m.  
appropriations after letter of amendment: EUR 25 million 
This amount concerns the compensation plus damage s to be paid for a case  still pending at the 
European Court of Justice. An amount of EUR 21 million was foreseen in the 2008 budget for the same reason, but not used as the final deci sion on these damages has not yet been taken. 
Interest will have to be added to the final amount to be paid, which is why the amount in the 
AL 2/2009 is higher than that foreseen in the 2008 budget. 
Other modifications within the EAGF
 
In addition to the more substantial variati ons mentioned above, the AL comprises some 
smaller adjustments of EAGF appropriations that can be summarised as follows: 05 02 06 
Olive oil (- EUR 2,3 million), 05 02 11 Other plant products/measures (+ EUR 5,1 million), and, finally, 11 02 03 01 Fisheries programmes fo r the outermost regions – New measures 
(+ EUR 2,5 million in payment appropriations, no change for commitment appropriations). 
2.3. Other Actions: Rapid response to food price increases in developing countries 
Rising food prices in 20 07 and 2008 have had negative effect s on many developing countries 
and their populations. Poverty for many millions  of people has worsened, and recent progress 
towards achieving the Millennium Development Go als is at risk. Moreov er, rising food prices 
have resulted in riots, unrest and instability in several countries, risking the achievements of 
years of political, developmenta l and peacekeeping investment.  
At the same time, high agricultural prices have  contributed to a reduc tion in market-related 
agricultural expenditure  in the 2008 Community budget, and to lower estimates for the 2009 
EN 13   EN budget within heading 2 of the financial fram ework. Current estimates indicate that a 
significant margin will be availabl e in this heading in 2008 and 2009.  
The European Council of 19-20 June 2008 concluded that action is required from the EU from 
a development and humanitarian assistance perspective. The European Council welcomed the 
Commission's intention to come forward with a proposal for a new fund to support agriculture 
in developing countries, within the framew ork of the current multi-annual financial 
framework, and stated that the EU would s upport a strong agricultu ral supply response in 
developing countries, providing in  particular the necessary fina ncing for agricultural inputs 
and assistance in using market-b ased risk management instrume nts. The Council also stated 
that in its response strategy, the Union would work in close liaison with the United Nations 
and other international organisations, and with in the framework of partner countries' own 
policies and strategies. 
On 18 July 2008 the European Commission adopted a proposal for the Regulation 
establishing a facility for rapid response to soaring food prices in  developing countries 
(hereafter referred to as the "Facility")5. It is proposed that part of the margin under heading 2 
of the multi-annual financial framework would be used in 2008 and 2009 in favour of the 
most affected developing countries. The "Facility" would be implemented through 
international and regional organisations, and would primarily support agriculture in 
developing countries and enable them to enha nce production levels. It will also help those 
countries to rapidly mitigate the negative effect s of the high food prices on the poorest. The 
Regulation will be valid only for a limited pe riod of two years (2008-2009), and the total 
financial reference amount proposed for its im plementation over that period is EUR 1 billion. 
From this overall amount, EUR 750 million have been proposed as commitment 
appropriations under the 2008 budget in the rese rve pending adoption of the legal base6, while 
the remaining EUR 250 million of commitments as well as the related payment appropriations need to be budgeted in 2009. The Commission theref ore proposes to create in the PDB 2009 
the budget line 21 02 03 Rapid response to food pr ice increases in deve loping countries, with 
commitment appropriations of EUR 240 million and payment appropriations of EUR 890 million in reserve, pending adoption of the legal base. It also proposes the creation 
of an additional line 21 01 04 40 intended to  finance the necessary  administrative support 
expenditure related to that action with EUR 10 million in 2009, both for commitments and 
payments, in reserve, pendi ng adoption of the legal base. 
                                                
 
5 COM(2008) 450 of 18.07.2008. 
6 PDAB 8/2008, COM(2008) 564 of 16.09.2008. 
EN 14   EN 2.4. Changes to the nomenclature and budgetary remarks 
Expenditure 
Appropriations AL 2/2009 Line Action 
Commitments Payments 
05 02 08 12 School fruit scheme  New budget item p.m. p.m. 
05 03 01 99 Other (Decoupled direct 
aids)  New budget item p.m. p.m. 
21 02 03  Rapid response to food price 
increases in developing countries  New budget article 240 000 000 890 000 000 
21 01 04 40 Rapid response to food 
price increases in developing 
countries – Expenditure on 
administrative management  New budget item 10 000 000 10 000 000 
In addition to these nomenclature changes, th e following budget remarks are new and/or have 
been updated: 
Chapter 05 02 – Interventions in agricultural  markets (figures for assigned revenues) 
Article 05 02 08 – Fruits and vege tables (update of legal basis) 
Item 05 02 08 12 – School fruit scheme (new item) Article 05 02 09 – Products of the wine-gro wing sector (updat e of legal basis) 
Article 05 02 16 – Sugar Restructuring Fund (figures for assigned revenue) 
Chapter 05 03 – Direct aids (f igures for assigned revenues) 
Item 05 03 01 99 – Other (Decoupled direct aids) (new item) Article 05 08 09 – European Agricultural Guar antee Fund (EAGF) – Operational technical 
assistance (budgetary remarks) 
Item 6 7 0 1 – Clearance of EAGF accounts – Assigned revenue (figures for assigned 
revenue) 
Item 6 7 0 2 – EAGF irregularities – Assigne d revenue (figures for assigned revenue) 
Item 6 7 0 3 – Superlevy from milk produ cers – Assigned revenue (figures for assigned 
revenue) 
Item 6 8 0 1 – Temporary restructuring amount s – Assigned revenue (figures for assigned 
revenue) 
Changes outside the EAGF: 
Item 05 04 05 01 – Rural development programmes (figures) 
Article 21 02 03 – Rapid response to food pri ce increases in develo ping countries (new 
article) 
Item 21 01 04 40 – Rapid response to food pr ice increases in developing countries – 
Expenditure on administrative management (new item) 
Article 11 03 01 – International fisheries agreements (table only) 
 
EN 15   EN SUMMARY  TABLE  BY HEADING  OF THE  FINANCIAL  FRAMEWORK  
Financial framework 
Heading/subheading 2009 Financial Framework PDB 2009 + AL No 1/2009 AL 2/2009 PDB 2009 + AL No 1 and 2/2009 
 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 
Margin7   96.149.331       96.149.331   
2. PRESERVATION AND 
MANAGEMENT OF NATURAL 
RESOURCES         
Of which market related expenditure and 
direct payments8 46.679.000.000  42.860.252.000 42.814.219.000 -1.280. 360.000 -1.277.860.000 41.579.892.000 41.536.359.000 
Total 59.639.000.000  57.525.729.686 54.834.932.000 -1.030 .200.000 -377.700.000 56.495.529.686 54.457.232.000 
Margin 2.113.270.314 3.143.470.314  
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 
Margin9    55.142.000       55.142.000   
4. EU AS A GLOBAL PLAYER10 7.440.000.000  7.619.432.000 7.759.456.769 7.619.432.000 7.759.456.769 
Margin   64.568.000    64.568.000   
5. ADMINISTRATION11 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   
                                                 
7 The European Globalisation adjustment Fund (EGF) is not included in the calculation of the margin under Heading 1a. 
8  The 2009 Financial Framework sub-ceiling for market related expenditure and direct payments is reduced to € 44.887.000.000 wh en taking into account modulation and 
financial transfers (cotton, tobacco and wine) to EAFRD. 
9 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). 
10 The 2008 margin for heading 4 does not take into account the appropriations related to the Emergency Aid Reserve (EUR 244 mill ion). 
11 For calculating the margin under  the ceiling for heading 5, accoun t is taken of the footnote (1) of the financial framework 20 07-2013 for an amount of EUR 78 million for 
the staff contributions to the pensions scheme. 
 
EN 16   EN TOTAL 136.211.000.000 123.858.000.000 134.581.239.249 116.923.762.32 9 -1.030.200.000 -377.700.000 133. 551.039.249 116.546.062.329 
Margin     2.451.760.751 7.256.237.671    3.481.960.751 7.633.937.671