P7_TA(2013)0472

2014 budgetary procedure: joint text

European Parliament legislative resolution of 20 November 2013 on the joint text on the draft general budget of the European Union for the financial year 2014 approved by the Conciliation Committee under the budgetary procedure (16106/2013 ADD 1-5 — C7-0413/2013 — 2013/2145(BUD))

(2016/C 436/27)

The European Parliament,

having regard to the joint text approved by the Conciliation Committee (16106/2013 ADD 1-5 — C7-0413/2013) and the Parliament, Council and Commission statements annexed to this resolution,

having regard to its resolution of 23 October 2013 on the draft general budget of the European Union for the financial year 2014 as modified by the Council — all sections (1) and the budgetary amendments therein,

having regard to the draft general budget of the European Union for the financial year 2014, adopted by the Commission on 28 June 2013 (COM(2013)0450),

having regard to the position on the draft general budget of the European Union adopted by the Council on 2 September 2013 and forwarded to Parliament on 12 September 2013 (13176/2013 — C7-0260/2013),

having regard to Amending Letters No 1/2014 (COM(2013)0644) and 2/2014 (COM(2013)0719) to the draft general budget of the European Union for the financial year 2014 presented by the Commission on 18 September 2013 and 16 October 2013 respectively,

having regard to Article 314 of the Treaty on the Functioning of the European Union and to Article 106a of the Treaty establishing the European Atomic Energy Community,

having regard to Council Decision 2007/436/EC, Euratom of 7 June 2007 on the system of the European Communities' own resources (2) ,

having regard to Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (3) ,

having regard to the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (4) ,

having regard to the Draft Interinstitutional Agreement between the European Parliament, the Council and the Commission on budgetary discipline, cooperation in budgetary matters and on sound financial management,

having regard to the draft Council Regulation laying down the multiannual financial framework for the years 2014 — 2020,

having regard to Rules 75d and 75e of its Rules of Procedure,

having regard to the report of its delegation to the Conciliation Committee (A7-0387/2013),

consolidated document showing the figures and final text of all lines modified during the conciliation;

list of budget lines not modified, compared to the draft budget or the Council's position;

Approves the joint text agreed by the Conciliation Committee, which consists of the following documents taken together:

Confirms the joint statements by Parliament, the Council and the Commission included in the joint conclusions agreed by the Conciliation Committee annexed to this resolution;

Confirms the joint statements by Parliament and the Commission on payment appropriations, as well as by Parliament and the Council, on heading 5 and salary adjustments, and on EU Special Representatives, annexed to this resolution;

Instructs its President to declare that the general budget of the European Union for the financial year 2014 has been definitively adopted and to arrange for its publication in the Official Journal of the European Union;

Instructs its President to forward this legislative resolution to the Council, the Commission, the other institutions and bodies concerned and the national parliaments.

(1) Texts adopted, P7_TA(2013)0437.

(2) OJ L 163, 23.6.2007, p. 17.

(3) OJ L 298, 26.10.2012, p. 1.

(4) OJ C 139, 14.6.2006, p. 1.

ANNEX

FINAL 12.11.2013

Budget 2014 — Joint conclusions

These joint conclusions cover the following sections:

1. Budget 2014 2. Budget 2013 — Amending Budgets No 8/2013 and No 9/2013 3. Statements

1. Budget 2014

1.1. ‘Closed’ lines

Unless stated otherwise below in these conclusions, all budget lines not amended by either Council or Parliament, and those for which Parliament accepted Council's amendments during their respective reading are confirmed.

For the other budget items, the Conciliation Committee has reached the following conclusions:

1.2. Horizontal issues

Decentralised agencies

The number of posts for all decentralised agencies is set at the level proposed by the Commission in the Draft Budget, with the exception of:

— European Aviation Safety Agency (EASA), for which 7 additional posts are agreed;

— European Banking Authority (EBA), for which 8 additional posts are agreed;

— European Insurance and Occupational Pensions Authority (EIOPA), for which 3 additional posts are agreed;

— European Securities and Markets Authority (ESMA), for which 5 additional posts are agreed;

— European Asylum Support Office (EASO), for which 2 additional posts are agreed; and

— EUROPOL, for which 2 additional posts are agreed.

The EU contribution (in commitment appropriations and in payment appropriations) for decentralised agencies is set at the level proposed by the Commission in the Draft Budget (DB), with the exception of:

— European Banking Authority (EBA), for which an additional amount of EUR 2,1 million is agreed, on the basis of the EU funding key of 40 % (60 % to be co-financed by national supervisory authorities);

— European Insurance and Occupational Pensions Authority (EIOPA), for which an additional amount of EUR 1,2 million is agreed, on the basis of the EU funding key of 40 % (60 % to be co-financed by national supervisory authorities);

— European Securities and Markets Authority (ESMA), for which an additional amount of EUR 2,0 million is agreed, on the basis of the EU funding key of 40 % (60 % to be co-financed by national supervisory authorities);

— European Asylum Support Office (EASO), for which an additional amount of EUR 0,130 million is agreed;

— EUROPOL, for which an additional amount of EUR 1,7 million is agreed; and

— FRONTEX, for which an additional amount of EUR 2,0 million is agreed.

The Conciliation Committee agrees on the joint statement on decentralised agencies as set out in Section 3.4.

Executive agencies

The EU contribution (in commitment appropriations and in payment appropriations) and the number of posts for executive agencies are set at the level proposed by the Commission in Amending Letter 2/2014.

Joint Technology Initiatives (JTIs)

The EU contribution (in commitment appropriations and in payment appropriations) and the number of posts for Joint Technology Initiatives are set at the level proposed at the level proposed by the Commission in the Draft Budget (DB), as amended by Amending Letter No 1/2014.

Pilot Projects/Preparatory Actions

A comprehensive package of 68 pilot projects/preparatory actions (PP/PA), for an amount of EUR 79,4 million in commitment appropriations is agreed, as proposed by the Parliament. 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 fully respects the ceilings for pilot projects and preparatory actions provided in the Financial Regulation.

1.3. Expenditure headings of the financial framework — commitment appropriations

After taking into account the above conclusions on ‘closed’ budget lines, agencies and pilot projects and preparatory actions, the Conciliation Committee has agreed on the following:

Heading 1a

Commitment appropriations are set at the level proposed by the Commission in the Draft Budget, as amended by Amending Letter No 1 and No 2/2014, with the following exceptions:

in EUR million Budget line Name Reinforcements/reductions of commitment appropriations DB 2014 Budget 2014 Difference 01 02 01 Coordination, surveillance and communication on the economic and monetary union, including the euro 13,000 11,000 -2,000 04 03 01 02 Social dialogue 38,500 — -38,500 04 03 01 05 Information and training sessions for workers’ organisations — 18,600 18,600 04 03 01 06 Information, consultation and participation of representatives undertakings — 7,250 7,250 04 03 01 08 Industrial relations and social dialogue — 15,935 15,935 04 03 02 02 EURES — Promoting workers’ geographical mobility and boosting employment opportunities 19,310 21,300 1,990 04 03 02 03 Microfinance and Social Entrepreneurship — Facilitating access to finance for entrepreneurs, especially those furthest from the labour market, and social enterprises 25,074 26,500 1,426 06 02 05 Support activities to the European transport policy and passenger rights, including communication activities 16,019 20,019 4,000 09 03 01 Accelerating the deployment of broadband networks — 10,000 10,000 09 04 01 01 Strengthening research in FET — Future and Emerging Technologies 241,003 246,003 5,000 15 02 10 Special Annual Events — 3,000 3,000 Total 26,701

As a consequence, and after taking into account pilot projects and preparatory actions, as well as decentralised agencies, the margin under the expenditure ceiling of heading 1a amounts to EUR 76,0 million.

Heading 1b

Commitment appropriations are set at the level proposed in the Draft Budget, as amended by Amending Letter No 1/2014, with the exception of the following budget lines, for each of which an amount of EUR 2,5 million in commitments is agreed:

— 13 03 67 ‘Macro regional strategies 2014-2020: European strategy for the Baltic Sea region — Technical assistance’ and

— 13 03 68 ‘Macro regional strategies 2014-2020: European strategy for the Danube region — Technical assistance’.

Furthermore, for the Fund for European Aid to the Most Deprived (FEAD, chapter 04 06) an additional amount of EUR 134,9 million in commitments is agreed. A corresponding amount in commitments is transferred from the European Social Fund (ESF, chapter 04 02), broken down as follows:

— - EUR 67,9 million for the ‘Less developed regions’ (budget line 04 02 60)

— - EUR 22,2 million for the ‘Transition regions’ (budget line 04 02 61)

— - EUR 44,8 million for the ‘More developed regions’ (budget line 04 02 62)

The Flexibility Instrument will be mobilised for an amount of EUR 89,3 million for additional assistance to Cyprus.

Heading 2

Commitment appropriations are set at the level proposed by the Commission in the Draft Budget, as amended by Amending Letter No 2/2014, with the exception of:

— budget line 05 08 80 Union participation at the World Exposition 2015 ‘Feeding the Planet — Energy for Life’ in Milan, for which an additional amount of EUR 1 million in commitments is agreed.

As a consequence, and after taking into account pilot projects and preparatory actions, the margin under the expenditure ceiling of heading 2 amounts to EUR 35,8 million.

Heading 3

Commitment appropriations are set at the level proposed by the Commission in the Draft Budget, as amended by Amending Letter No 2/2014, with the following exceptions:

in EUR million Budget line Name Reinforcements of commitment appropriations DB 2014 Budget 2014 Difference 15 04 02 Supporting the cultural and creative sectors to operate in Europe and beyond and to promote transnational circulation and mobility 52,922 53,922 1,000 15 04 03 MEDIA sub-programme — Supporting the MEDIA cultural and creative sectors to operate in Europe and beyond and to promote transnational circulation and mobility 102,321 103,321 1,000 16 02 01 Europe for Citizens — Strengthening remembrance and enhancing capacity for civic participation at the Union level 21,050 23,050 2,000 16 03 01 01 Multimedia actions 18,740 25,540 6,800 33 02 02 Promoting non-discrimination and equality 30,651 31,151 0,500 Total 11,300

As a consequence, and after taking into account pilot projects and preparatory actions, as well as decentralised agencies, the margin under the expenditure ceiling of heading 3 amounts to EUR 7,0 million.

Heading 4

Commitment appropriations are set at the level proposed by the Commission in the Draft Budget, as amended by Amending Letter No 2/2014, with the following exceptions:

in EUR million Budget line Name Reinforcements/reductions of commitment appropriations DB 2014 Budget 2014 Difference 01 03 02 Macro-financial assistance 76,257 60,000 -16,257 19 02 01 Response to crisis and emerging crisis (Instrument for Stability) 201,867 204,337 2,470 19 02 02 Support conflict prevention, crisis preparedness and peace building (Instrument for Stability) 22,000 22,494 0,494 19 05 01 Cooperation with third countries to advance and promote European Union and mutual interests 100,511 106,109 5,598 21 02 01 01 Latin America — poverty reduction and sustainable development 205,735 0,000 - 205,735 21 02 01 02 Latin America — democracy, rule of law, good governance and respect for human rights 48,259 0,000 -48,259 21 02 02 01 Asia — poverty reduction and sustainable development 581,964 0,000 - 581,964 21 02 02 02 Asia — democracy, rule of law, good governance and respect for human rights 154,699 0,000 - 154,699 21 02 03 01 Central Asia — poverty reduction and sustainable development 65,240 0,000 -65,240 21 02 03 02 Central Asia– democracy, rule of law, good governance and respect for human rights 4,911 0,000 -4,911 21 02 04 01 Middle East — poverty reduction and sustainable development 37,305 0,000 -37,305 21 02 04 02 Middle East — democracy, rule of law, good governance and respect for human rights 13,107 0,000 -13,107 21 02 05 01 South Africa — poverty reduction and sustainable development 22,768 0,000 -22,768 21 02 05 02 South Africa — democracy, rule of law, good governance and respect for human rights 2,530 0,000 -2,530 21 02 06 01 Pan-Africa — poverty reduction and sustainable development 85,210 0,000 -85,210 21 02 06 02 Pan-Africa — democracy, rule of law, good governance and respect for human rights 9,468 0,000 -9,468 21 02 07 01 Global Public Goods — poverty reduction and sustainable development 620,988 0,000 - 620,988 21 02 07 02 Global Public Goods — democracy, rule of law, good governance and respect for human rights 19,036 0,000 -19,036 21 02 07 03 Environment and climate change 0,000 163,094 163,094 21 02 07 04 Sustainable energy 0,000 82,852 82,852 21 02 07 05 Human development 0,000 163,094 163,094 21 02 07 06 Food security and sustainable agriculture 0,000 197,018 197,018 21 02 07 07 Migration and asylum 0,000 46,319 46,319 21 02 08 01 Non-State actors and Local authorities — Poverty reduction and sustainable development 183,452 0,000 - 183,452 21 02 08 02 Non-State actors and Local authorities — Democracy, rule of law, good governance and respect for human rights 61,151 0,000 -61,151 21 02 08 03 Civil society in development 0,000 212,399 212,399 21 02 08 04 Local authorities in development 0,000 36,366 36,366 21 02 09 Middle East 0,000 51,182 51,182 21 02 10 Central Asia 0,000 71,571 71,571 21 02 11 Pan Africa 0,000 97,577 97,577 21 02 12 Latin America 0,000 259,304 259,304 21 02 13 South Africa 0,000 25,978 25,978 21 02 14 Asia 0,000 537,057 537,057 21 02 15 Afghanistan 0,000 203,497 203,497 21 03 01 01 Mediterranean countries — human rights and mobility 205,355 211,087 5,731 21 03 01 02 Mediterranean countries — poverty reduction and sustainable development 680,400 687,811 7,411 21 03 01 03 Mediterranean countries — confidence building, security and the prevention and settlement of conflicts 75,950 80,199 4,249 21 03 01 04 Support to peace process and financial assistance to Palestine and to the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) 250,000 300,000 50,000 21 03 02 01 Eastern Partnership — human rights and mobility 240,841 247,067 6,226 21 03 02 02 Eastern Partnership — poverty reduction and sustainable development 335,900 339,853 3,953 21 03 02 03 Eastern Partnership — confidence building, security and the prevention and settlement of conflicts 11,800 12,966 1,166 21 03 03 03 Support to other multi-country cooperation in the neighbourhood 163,277 163,771 0,494 21 04 01 Enhancing the respect for and observance of human rights and fundamental freedoms and supporting democratic reforms 127,841 132,782 4,941 21 05 01 Global and trans-regional security threats (Instrument for Stability) 81,514 82,255 0,741 21 08 02 Coordination and promotion of awareness on development issues 11,700 13,331 1,631 22 02 01 Support to Albania, Bosnia and Herzegovina, Kosovo, Montenegro, Serbia and the former Yugoslav Republic of Macedonia 22 02 01 01 Support for political reforms and progressive alignment with and adoption, implementation and enforcement of the ‘acquis communautaire’ 248,565 249,800 1,235 22 02 01 02 Support for economic, social and territorial development 248,565 249,800 1,235 22 02 03 Support to Turkey 22 02 03 01 Support for political reforms and progressive alignment with and adoption, implementation and enforcement of the ‘acquis communautaire’ 292,938 294,173 1,235 22 02 03 02 Support for economic, social and territorial development 292,938 294,173 1,235 22 03 01 Financial support for encouraging the economic development of the Turkish Cypriot community 30,000 31,482 1,482 23 02 01 Delivery of rapid, effective and needs-based humanitarian aid and food assistance 859,529 874,529 15,000 Total 131,755

As a consequence, and after taking into account pilot projects and preparatory actions, the margin under the expenditure ceiling of heading 4 amounts to EUR 10,0 million.

Heading 5

As far as establishment plan posts of the Sections are concerned, the level proposed by the Commission in the Draft Budget, as amended by Amending Letter No 2/2014, is agreed, with the exception of the European Parliament, for which its own reading is agreed.

Commitment appropriations are set at the level proposed by the Commission in the Draft Budget, as amended by Amending Letter No 2/2014, with the exception of:

— The amounts corresponding to the possible impact of the 2011 and 2012 salary adjustments, which are not included in the budgets of each Section at this stage, pending the ruling of the Court of Justice. The Conciliation Committee agrees on the joint statement as set out in Section 3.5;

— Furthermore, as far as the appropriations of the other Sections are concerned, the level proposed by the European Parliament is agreed, with the following exceptions: — For the Court of Auditors (Section V), the abatement rate proposed by the Council is agreed; — For the Court of Justice (Section IV), excluding the reduction of EUR 0,6 million proposed by the European Parliament; — For the European External Action Service (Section X), excluding the transfer of the EU Special Representatives proposed by the European Parliament. The Conciliation Committee agrees on the joint statement as set out in Section 3.6.

— In addition, three new lines (30 01 16 01, 30 01 16 02, 30 01 16 03) are included in the budget of the Commission (Section III), with the corresponding level of appropriations proposed by the European Parliament in its reading.

As a consequence, and after taking into account pilot projects and preparatory actions, the margin under the expenditure ceiling of heading 5 amounts to EUR 316,8 million.

Creation of function group AST/SC

The establishment plans of all EU Institutions and bodies will be modified to take account of the creation in the Staff Regulations of the new AST/SC function group, as proposed in Amending Letter No 2/2014.

Heading 6

Commitment appropriations are set at the level proposed by the Commission in the Draft Budget.

1.4. Special instruments

Commitment appropriations for the Emergency Aid Reserve (EAR) and the European Globalisation Adjustment Fund (EGF) are set at the level proposed by the Commission in the Draft Budget.

1.5. Payment appropriations

The overall level of payment appropriations in the 2014 budget is set at EUR 135 504 613 000.

The Council position on the Draft Budget is used as a starting point to apply the following allocation of payment appropriations across budget lines in 2014:

1. First, account is taken of the agreed level of commitment appropriations for non-differentiated expenditure, for which the level of payment appropriations by definition is equal to the level of commitments;

2. By analogy, the same applies to decentralised agencies, for which the EU contribution in payment appropriations is set at the level proposed in section 1.2 above;

3. The payment appropriations for all new pilot projects and preparatory actions are set at 50 % of the corresponding commitment appropriations, or to the level proposed by Parliament if lower; in the case of extension of existing pilot projects and preparatory actions the level of payments is the one defined in the Draft Budget plus 50 % of the corresponding new commitments, or to the level proposed by Parliament if lower;

4. The following specific amounts in payment appropriations are agreed: a. The level of payment appropriations for the EU Solidarity Fund in 2014 is set at EUR 150 million; b. The level of payment appropriations for the Joint Technology Initiatives is set at the level proposed in Amending Letter No 1/2014, whereas the level of payment appropriations for the International Fisheries Agreements is set at the level proposed in Amending Letter No 2/2014; c. The level of payment appropriations for ‘Support to peace process and financial assistance to Palestine and to the United Nations Relief and Works Agency for Palestine Refugees (UNRWA)’ is set at EUR 200 million; d. The level of payment appropriations for the Macro-regional strategies 2014-2020 is set at 50 % of the level of commitments defined under heading 1b in section 1.3 above; e. The level of payment appropriations for the Special Annual Events is set at the level of commitments defined under heading 1a in section 1.3 above.

5. The level of payment appropriations set in paragraphs 2 to 4 has a net impact of EUR 285 million compared with the Council position on the Draft Budget for the expenditure items concerned. Taking into account the difference between the overall level of payment appropriations of EUR 135 504 613 000 and the Council position on the Draft Budget, the remaining amount of EUR 215 million allows for an increase of payment appropriations across all budget lines with differentiated appropriations for which no specific rules have been defined in the paragraphs 2 to 4 above, in proportion with the difference between the Draft Budget proposed by the Commission and the Council position.

As part of the overall compromise, the Conciliation Committee agrees on the joint statement on payment appropriations as set out in section 3.1 below.

The Council takes note of the joint statement of the European Parliament and the Commission on payment appropriations as set out in section 3.2 below.

1.6. Budgetary remarks

All amendments introduced by the European Parliament or the Council to the text of budgetary remarks are agreed with changes as set out in Annex 1. This is with the understanding that they cannot modify or extend the scope of an existing legal base, or impinge on the administrative autonomy of institutions, and that the action can be covered by available resources.

1.7. New budget lines

Unless mentioned otherwise in the joint conclusions agreed by the Conciliation Committee or agreed jointly by both arms of the budgetary authority in their respective reading, the budget nomenclature as proposed by the Commission in its Draft Budget and its Amending Letters No 1 and No 2/2014 will remain unchanged, with the exception of pilot projects and preparatory actions.

These commonly agreed nomenclature changes concern the following budget lines:

Budget line Name 04 03 01 05 Information and training sessions for workers’ organisations 04 03 01 06 Information, consultation and participation of representatives undertakings 04 03 01 08 Industrial relations and social dialogue 15 02 01 Promoting excellence and cooperation in the European education, training and youth area, its relevance to the labour market and the participation of young people in European democratic life 15 02 01 01 Education and training 15 02 01 02 Youth 15 02 10 Special Annual Events 21 02 07 03 Environment and climate change 21 02 07 04 Sustainable energy 21 02 07 05 Human development 21 02 07 06 Food security and sustainable agriculture 21 02 07 07 Migration and asylum 21 02 08 03 Civil society in development 21 02 08 04 Local authorities in development 21 02 09 Middle East 21 02 10 Central Asia 21 02 11 Pan Africa 21 02 12 Latin America 21 02 13 South Africa 21 02 14 Asia 21 02 15 Afghanistan 30 01 16 01 Retirement Pensions of former Members of the European Parliament 30 01 16 02 Invalidity Pensions of former Members of the European Parliament 30 01 16 03 Survivor’s Pensions of former Members of the European Parliament

The budget remarks for the new budget lines on Social Dialogue, as proposed by the Commission, are set out in the Annex.

1.8. Reserves

The reserve of EUR 2 million set by the European Parliament on budget line 01 02 01 ‘Coordination, surveillance and communication on the economic and monetary union, including the euro’ is agreed.

1.9. Revenues

The revenue side of the budget is approved as proposed by the Commission in the Draft Budget, as amended by Amending Letter No 2/2014 adjusted to the level of payments agreed in the Conciliation Committee.

2. Budget 2013

Draft Amending Budget (DAB) No 8/2013 is agreed with the amounts as proposed by the Council.

DAB No 9/2013 is agreed as proposed by the Council, with the following amendments:

1. A reinforcement of EUR 200 million to meet outstanding needs for payment appropriations in 2013 in the field of research is agreed, on the following budget lines: in EUR million Budget line Name Reinforcement in payment appropriations in 2013 06 06 02 03 SESAR Joint Undertaking 12,458 million 08 02 02 Cooperation — Health — Innovative Medicines Initiative Joint Undertaking 17,981 million 08 04 01 Cooperation — Nanosciences, nanotechnologies, materials and new production technologies 19,936 million 08 06 01 Cooperation — Environment (including climate change) 2,804 million 08 10 01 Ideas 41,884 million 08 19 01 Capacities — Support for coherent development of research policies 0,406 million 09 04 01 01 Support for research cooperation in the area of information and communication technologies (ICTs — Cooperation) 40,813 million 10 03 01 Nuclear activities of the Joint Research Centre (JRC) 0,406 million 15 07 77 People 63,313 million Total 200 million

2. A redeployment of payment appropriations for a total amount of EUR 50 million in 2013 is agreed from the following budget lines: in EUR million Budget line Name Redeployments of payment appropriations Budget 2013 DAB 9/2013 Difference 01 03 02 Macro-Financial Assistance 10,000 04 05 01 European Globalisation Adjustment Fund (EGF) 13,116 08 01 04 31 Research Executive Agency (REA) 3,915 08 01 05 01 Expenditure related to research staff 7,230 08 01 05 03 Other management expenditure for research 15,739 Total 50,000

The redeployment of payment appropriations for administrative support expenditure for research (chapter 08 01) in 2013 concerns non-differentiated expenditure, which leads to a corresponding reduction in commitment appropriations (- EUR 26,9 million) on the last three lines in the table above.

An amount of EUR 250 million of payment appropriations for the EU Solidarity Fund in included in the 2013 budget, whereas an amount of EUR 150 million of payment appropriations for the EU Solidarity Fund is included in the 2014 budget.

3. Statements

3.1. Joint statement on payment appropriations

The European Parliament, the Council, and the Commission recall their shared responsibility, as laid down in Article 323 of the Treaty on the Functioning the European Union (TFEU), that ‘the European Parliament, the Council and the Commission shall ensure that the financial means are made available to allow the Union to fulfil its legal obligation in respect of third parties’.

The European Parliament and the Council recall the need to ensure, in the light of implementation, an orderly progression of payments so as to avoid any abnormal shift of outstanding commitments (‘RAL’) onto the 2015 budget. In this respect, they will have recourse, when appropriate, to the various flexibility mechanisms included in the MFF Regulation, among others in its Article 13.

The European Parliament and the Council agree to set the level of payment appropriations for 2014 at EUR 135 504 613 000. They ask the Commission to initiate any necessary action, on the basis of the provisions of the draft MFF Regulation and the Financial Regulation, to cover the responsibility assigned by the Treaty and, in particular, after having examined the scope for reallocation of the relevant appropriations, with particular reference to any expected under-implementation of appropriations (Financial Regulation Article 41§ 2) to request additional payment appropriations in an amending budget if the appropriations entered in the 2014 budget are insufficient to cover expenditure.

The European Parliament and the Council will take position on any draft amending budget as quickly as possible in order to avoid any shortfall in payment appropriations. In addition, the European Parliament and the Council undertake to process swiftly any possible transfer of payment appropriations, including across financial framework headings, in order to make the best possible use of payment appropriations entered in the budget and align them to actual execution and needs.

The European Parliament, the Council and the Commission will, throughout the year, actively monitor the state of implementation of the 2014 budget, in particular under sub-heading 1b (Economic, social and territorial cohesion) and rural development under heading 2 (Sustainable Growth: Natural Resources). This will take the form of dedicated inter-institutional meetings, in accordance with point 36 of the Annex of the Interinstitutional Agreement, to take stock of payment implementation and revised forecasts.

3.2. European Parliament and Commission statement on payment appropriations

The European Parliament and the Commission recall the need for specific and maximum flexibility within the 2014-2020 MFF. Changes to the proposed legal bases agreed by the legislative authority will lead to further pressure on the payment ceilings under the 2014-2020 MFF. In the context of the finalisation of the legislative package for the Cohesion policy 2014-2020 and taking into account the possible impact of the SME initiative, the Commission issued a declaration on the impact of the agreement reached on the performance reserve and pre-financing levels, on payment needs. Whilst the overall impact of these changes on additional payment appropriations in the 2014-2020 MFF is considered to remain limited, the Commission stated that the annual fluctuations in the global level of payments would be managed through the use of the global margin for payments. If needed, the Commission may also have recourse to the Flexibility Instrument and the Contingency Margin agreed upon in the draft MFF Regulation.

Therefore, the Commission intends to propose correcting measures in light of implementation, using, to the extent necessary, all the tools offered by the new MFF. Specifically, in the course of 2014 the Commission may have to propose to have recourse to the Contingency Margin, in accordance with Article 13 of the draft MFF Regulation.

3.3. Council statement on payment appropriations

The Council recalls that the special instruments can only be activated to cater for genuinely unforeseen circumstances.

It recalls that the Contingency Margin shall not result in exceeding the total ceilings of commitment and payment appropriations.

As regards other special instruments, the Council recalls that Article 3(2) of the draft MFF Regulation states that commitment appropriations may be entered in the budget over and above the ceilings of the relevant headings.

3.4. Joint statement on decentralised agencies

The European Parliament, the Council and the Commission recall the importance to progressively reduce the staffing levels of all EU institutions, bodies and agencies by 5 % over five years, as agreed in point 23 of the draft Interinstitutional Agreement on budgetary discipline, cooperation in budgetary matters and on sound financial management.

The European Parliament and the Council commit to pursue progressively the above-mentioned 5 % staff reduction for the period 2013-2017 while insisting as well on the proper functioning of the agencies so that they can fulfil the tasks they have been assigned by the legislative authority. In this respect, they consider that further measures, including structural ones, may be required to achieve this reduction for decentralised agencies. In this context, the Commission will continue its assessment of the possibilities to merge and/or wind-up some of the existing agencies, and/or other ways to achieve synergies.

Further to the work carried out by the Inter-Institutional Working Group, which resulted in the Common Approach on decentralised agencies agreed in July 2012, the European Parliament, the Council and the Commission agree on the need for a closer and more permanent scrutiny on the development of decentralised agencies to ensure a coherent approach. Without prejudice to their respective prerogatives, they agree to establish a specific inter-institutional working group with the aim of defining a clear development path for agencies, based on objective criteria. The Group should in particular discuss:

— Evaluation of establishment plans on a case-by-case basis;

— Ways to provide adequate appropriations and staff for additional tasks, assigned to individual agencies by the legislative authority;

— Treatment of agencies which are fully or partially fee-financed;

— Administrative structure of agencies, financing models, treatment of assigned revenues;

— Reassessment of needs; potential mergers/closures; transfer of tasks to the Commission.

The European Parliament and the Council will take into due account the results achieved by the Inter-Institutional Working Group in their deliberations as legislative and budgetary authority.

3.5. Joint statement on heading 5 and salary adjustments

The European Parliament and the Council agree that pending the outcome of the cases before the European Court of Justice, the appropriations related to the proposed salary adjustments of 1,7 % for 2011 and 1,7 % for 2012 will not be included at this stage in the 2014 budget.

Should the Court of Justice rule in favour of the Commission, the Commission will present a Draft Amending Budget in 2014 in order to cover the proposed salary adjustments, for all the Sections. Under such a scenario, the European Parliament and the Council undertake to act swiftly on the relevant Draft Amending Budget.

3.6. Joint statement on EU Special Representatives

The Parliament and the Council agree to examine the transfer of appropriations for the European Union Special Representatives from the Commission's budget (Section III) to the budget of the European External Action Service (Section X) in the context of the 2015 budgetary procedure.