The changes to the general statement of revenue and in section III are available on EUR-Lex ( https://eur-lex.europa.eu/budget/www/index-en.htm ).

–Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union (…), and in particular Article 44 thereof,

–the 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,

4. Summary table by MFF heading

EXPLANATORY MEMORANDUM

1. Introduction

The purpose of Draft Amending Budget (DAB) No 5 for the year 2021 is to provide continued support to the most vulnerable of the around 3,7 million refugees in Turkey as a consequence of the Syria crisis. This DAB represents the first component of the Commission’s formal proposals for the continuation of financing for Syrian refugees and host communities in Turkey, Jordan, Lebanon and other parts of the region within the context of the EU’s overall migration policy. Under the MFF heading 6 “Neighbourhood and the World”, EUR 149,6 million in commitment appropriations are requested to ensure the continuation of humanitarian support to refugees in Turkey. No additional payment appropriations are requested for this purpose in 2021.

2. Humanitarian support to refugees in Turkey

Turkey currently hosts the largest refugee population in the world – close to 4,1 million. Some 3,7 million of them are Syrians who fled the ongoing conflict that has been ravaging their country for over 10 years. The situation might be aggravated depending on the developments in Afghanistan. The vast majority of refugees in Turkey live outside camps, with growing but still limited access to basic services. The European Union, in close cooperation with the Turkish authorities, has been assisting the most vulnerable people based on humanitarian needs.

Following the EU-Turkey Statement signed by EU Heads of State or Government and their Turkish counterpart on 18 March 2016, the Commission and Member States committed in two tranches EUR 6 billion in EU assistance to refugees in Turkey for 2016-2019, delivered through the Facility for Refugees in Turkey. The operational envelope of this funding has been committed and contracted in full. Disbursements reached EUR 4,2 billion by end of May 2021 in line with the planning.

The publication of the fifth annual report on the EU Facility for refugees in Turkey gives evidence of the results achieved so far, and how vital the Facility is in supporting refugees and host communities in Turkey.

In 2020, EUR 485 million from the EU budget (from the margin under the expenditure heading of Heading 4 “Global Europe” and the Contingency Margin) was allocated in the amending budget 5/2020 to be able to continue the two key humanitarian flagship programmes - the Emergency Social Safety Net (ESSN) and the Conditional Cash Transfer for Education (CCTE).

The Commission will put forward proposals for the continuation of financing for Syrian refugees and host communities in Turkey, Jordan, Lebanon and other parts of the region. This DAB proposes the necessary reinforcement to put in place the humanitarian component of this package of support to refugees in Turkey.

As part of the strategy of transition from humanitarian to development assistance and the longer term transition strategy with the Turkish authorities, the Conditional Cash Transfer for Education (CCTE) will transition to development assistance at the end of the school year 2021/2022 by mid-2022. However, the transition of the Emergency Social Safety Net (ESSN) to development assistance is planned to take place in early 2023, i.e. beyond the expiry of the current agreement in March 2022. Approximately EUR 325 million in commitment appropriations is therefore needed to extend the coverage of the ESSN support - which provides monthly cash transfers to over 1,8 million refugees - from March 2022 until the beginning of 2023.

The Commission proposes to finance the extension of this support by using the remaining Heading 6 margin in 2021, with the balance coming from the Humanitarian Aid envelope in 2021 and 2022.

Budget line Name Commitment appropriations Payment appropriations 14 03 01 Humanitarian aid 149 643 796 Total 149 643 796

3. Financing

Apart from the use of the existing Humanitarian Aid envelope, there are currently no other redeployment possibilities under MFF Heading 6. In addition to the EUR 100,4 million to be committed under the Humanitarain Aid envelope this year, the Commission therefore proposes to mobilise the full unallocated margin under this heading of EUR 149,6 million to finance the urgent humanitarian support to refugees in Turkey. The balance required – currently estimated at EUR 75 million - will be committed from the Humanitarian Aid budget line in 2022.

No additional payment appropriations are requested under the 2021 budget. However, the payment appropriations to cover the proposed reinforcement of commitment appropriations in 2021 will be needed in 2022 and 2023. The impact on the 2022 payments will be incorporated in the the amending letter to the 2022 draft budget in October 2021.

4. Summary table by MFF heading