ANNEX

DRAFT PACKAGE

Budget 2019 — Joint conclusions

These joint conclusions cover the following sections:

1. Budget 2019

2. Statements

Summary overview

According to the elements for joint conclusions:

— The overall level of commitment appropriations in the 2019 budget is set at EUR 165 795,6 million. Overall, this leaves a margin below the MFF ceilings for 2019 of EUR 1 291,1 million in commitment appropriations.

— The overall level of payment appropriations in the 2019 budget is set at EUR 148 198,9 million.

— The Flexibility Instrument for 2019 is mobilised in commitment appropriations for an amount of EUR 1 164,3 million for heading 1a Competitiveness for Growth and Jobs and heading 3 Security and Citizenship.

— The Global margin for commitments is used at a level of EUR 1 476,0 million for heading 1a Competitiveness for Growth and Jobs, heading1b Economic, Social and Territorial Cohesion and heading 4 Global Europe.

— The Contingency margin mobilised in 2017 is offset for EUR 253,9 million against the unallocated margins under heading 5 Administration.

— The 2019 payment appropriations related to the mobilisation of the Flexibility Instrument in 2016, 2017, 2018 and 2019 are estimated by the Commission at EUR 961,9 million.

1. Budget 2019

The European Parliament and the Council have agreed on the conclusions included in sections 1.1 to 1.6 below.

1.1. Horizontal issues

Decentralised agencies

The EU contribution (in commitment and payment appropriations) and the number of posts for decentralised agencies are set at the level proposed by the Commission in the second Draft Budget (second DB).

Executive agencies

The EU contribution (in commitment and payment appropriations) and the number of posts for executive agencies are set at the level proposed by the Commission in the second DB.

Pilot Projects/Preparatory Actions

A comprehensive package of 75 pilot projects/preparatory actions (PP/PA) is agreed, as proposed by the Commission in the second DB. When a pilot project or a preparatory action appears to be covered by an existing legal basis, the Commission may propose the transfer of appropriations to the corresponding legal basis in order to facilitate the implementation of the action.

This package, proposed by the European Parliament in its reading of the original Draft Budget, fully respects the ceilings for pilot projects and preparatory actions provided in the Financial Regulation.

1.2. Expenditure headings of the financial framework — commitment appropriations

Heading 1a

Commitment appropriations are set at the level proposed by the Commission in the second DB, but with the adjustments detailed in the following table.

In EUR Budget line / Programme Name Variation in commitment appropriations Second Draft Budget 2019 Budget 2019 Difference 1.1.31 Horizon 2020 150 000 000 08 02 03 04 Achieving a European transport system that is resource-efficient, environmentally friendly, safe and seamless 252 946 905 260 946 905 8 000 000 08 02 08 SME instrument 541 589 527 641 589 527 100 000 000 09 04 01 01 Strengthening research in future and emerging technologies 429 937 089 442 937 089 13 000 000 15 03 01 01 Marie Skłodowska-Curie actions — generating, developing and transferring new skills, knowledge and innovation 916 586 364 945 586 364 29 000 000 1.1.5 Education, Training and Sport (Erasmus+) 40 000 000 15 02 01 01 Promoting excellence and cooperation in the European education and training area and its relevance to the labour market 2 411 836 200 2 441 036 200 29 200 000 15 02 01 02 Promoting excellence and cooperation in the European youth area and the participation of young people in European democratic life 175 070 000 185 870 000 10 800 000 Total 190 000 000

As a consequence, the agreed level of commitment appropriations is set at EUR 23 335,4 million, with no margin left under the expenditure ceiling of heading 1a, the use of the Global Margin for Commitments for an amount of EUR 74,7 million and the mobilisation of EUR 178,7 million through the Flexibility Instrument.

Heading 1b

Commitment appropriations are set at the level proposed by the Commission in the second DB.

As a consequence, the agreed level of commitment appropriations is 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.

Heading 2

Commitment appropriations are set at the level proposed by the Commission in the second DB.

As a consequence, the agreed level of commitment appropriations is set at EUR 59 642,1 million, leaving a margin of EUR 701,9 million.

Heading 3

Commitment appropriations are set at the level proposed by the Commission in the second DB.

As a consequence, the agreed level of commitment appropriations is set at EUR 3 786,6 million, with no margin left under the expenditure ceiling of heading 3, and the mobilisation of EUR 985,6 million through the Flexibility Instrument.

Heading 4

Commitment appropriations are set at the level proposed by the Commission in the second DB.

As a consequence, the agreed level of commitment appropriations is 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.

Heading 5

The number of posts in the establishment plans of the Institutions and the appropriations are set at the level proposed by the Commission in the second DB.

As a consequence, and after taking into account pilot projects and preparatory actions (EUR 4,1 million) proposed under section 1.1 above, the agreed level of commitment appropriations is 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.

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 set at the level proposed by the Commission in the second DB.

1.3. Payment appropriations

The overall level of payment appropriations in the 2019 Budget is set at the level proposed by the Commission in the second DB.

1.4. Budgetary remarks

Budgetary remarks as proposed by the Commission in the second DB are approved, except for the following budget lines:

— Article 08 02 08 — SME Instrument of the section of the European Commission, for which the text as proposed in the original Draft Budget is approved;

— item 2 2 1 4 — Strategic Communication Capacity of the section of the European External Action Service, for which the text included in the reading of the European Parliament of the original Draft Budget is approved.

1.5. Nomenclature

The nomenclature as proposed by the Commission in the second DB is approved.

1.6. Reserves

The reserves as proposed by the Commission in the second DB are approved. In addition, an amount of EUR 19 321 000 is put in reserve in both commitment and payment appropriations pending the adoption of the Commission's proposal COM(2018)0632 of 12 September 2018 for Article 18 03 02 European Border and Coast Guard Agency (Frontex).

2. Statements

2.1. Joint statement by the European Parliament, Council and Commission on the payment appropriations

The European Parliament and the Council recall the need to ensure, in the light of implementation, an orderly progression of payments in relation to the appropriations for commitments so as to avoid any abnormal level of unpaid invoices at year-end. The European Parliament and the Council call on the Commission to continue monitoring closely and actively the implementation of the 2014-2020 programmes. To that end, they invite the Commission to present, in a timely manner, updated figures concerning the state of implementation and estimates regarding payment appropriations requirements in 2019. If the figures show that the appropriations entered in the 2019 budget are insufficient to cover the needs, the European Parliament and the Council invite the Commission to present as soon as possible an appropriate solution, inter alia amending budget, with a view to allow the Budgetary Authority to take any necessary decisions in due time for duly justified needs. Where applicable, the European Parliament and the Council will take account the urgency of the matter.

2.2. Joint statement by the European Parliament, Council and Commission on the Youth Employment Initiative

The European Parliament, the Council and the Commission recall that reducing youth unemployment remains a high and shared political priority and reaffirm their determination to make the best possible use of budgetary resources to reach this goal, and in particular through the Youth Employment Initiative (YEI). The European Parliament and the Council take note of the past experience in the context of the increase of the resources of the specific allocation for the YEI, which triggered extensive amendments to programmes to provide amounts from the European Social Fund (ESF) to match the support from the YEI specific allocation. Therefore, the European Parliament and the Council invite the Commission to present a legislative proposal for smooth implementation of the increased budgetary resources for YEI. The European Parliament and the Council agree to swiftly examine this proposal, taking into account the upcoming European Parliament elections, to make the re-programming exercise in 2019 as smooth as possible.

2.3. Unilateral statement by the Commission on the Youth Employment Initiative

Without prejudice to the powers of the budgetary authority, the Commission confirms that the increase of the Youth Employment Initiative agreed for 2019 will not be considered as a frontloading of the amount currently foreseen for 2020 when it presents the updated financial programming and the legislative proposal to revise the Common Provisions Regulation.

2.4. Joint statement by the European Parliament, Council and Commission on the climate mainstreaming

The European Parliament, the Council and the Commission recall the importance of building a low-carbon, resource-efficient and climate resilient economy. To this end, the Council and the EP agreed to invest at least 20 % of the EU budget in climate-related expenditure over the period 2014-20. On average — and even though the 2019 budget alone does reach the 20 % target — the current forecast for the whole 2014-20 period indicates that 19,3 % of the EU budget will be allocated to climate action, mainly due to the delays in the implementation of the European Structural Investment Funds at the beginning of the period. The Council and the European Parliament take note of this evolution and invite the Commission to make every effort to reach the 20 % target for the whole 2014-20 period.

2.5. Joint statement by the European Parliament, Council and Commission on the reinforcement of heading 1a through an Amending budget