EUROPEAN COMMISSION Brussels, 10.7.2018 COM(2018) 537 final DRAFT AMENDING BUDGET No 5

TO THE GENERAL BUDGET 2018 Cancellation of the reserve related to the support to Turkey from the Instrument for Pre-Accession (IPA II), reinforcement of the European Neirbourhood Instrument (ENI) and of the Humanitarian Aid for orther urgent actions and modification of the establishment plan of the Innovation & Networks Executive Agency (INEA) in the context of the WiFi4EU initiative



Having regard to: –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, –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 in particular Article 41 thereof, –the general budget of the European Union for the financial year 2018, as adopted on 30 November 2017, –the amending budget No°1/2018, adopted on 30 May 2018, –the amending budget No°2/2018, adopted on 4 July 2018, –the amending budget No 3/2018, adopted on 4 July 2018, –the draft amending budget No 4/2018, adopted on 31 May 2018. The European Commission hereby presents draft amending budget No 5 to the general budget 2018 to the European Parliament and to the Council. CHANGES TO THE STATEMENT OF REVENUE AND EXPENDITURE BY SECTION The changes to the statement of revenue and expenditure by section are available on EUR-Lex ( http://eur-lex.europa.eu/budget/www/index-en.htm ). An English version of the changes to this statement is attached for information as a budgetary annex. TABLE OF CONTENTS 1. Introduction 2. Cancellation of the reserve related to the support to Turkey from the Instrument for Pre-Accession (IPA II) 3. Reinforcement of the European Neighbourhood Instrument (ENI) in commitment appropriations 4. Reinforcement of Humanitarian Aid in payment appropriations 5. WiFi4eu Initiative - Reinforcement of the establishment plan of the Innovation & Networks Executive Agency (INEA) 6. Summary table by MFF heading

1.Introduction The purpose of Draft Amending Budget (DAB) No 5 for the year 2018 is the following: -To cancel, both in commitment and payment appropriations, the reserve related to the support to Turkey from the Instrument for Pre-Accession (IPA II) as the condition set by the European Parliament and the Council for its lifting has not been met. -To reinforce, in commitment appropriations, the European Neighbourhood Instrument (ENI) to fund additional actions linked to the Central Mediterranean migratory route and to fulfil part of the pledge made at the 24-25 April 2018 Brussels II conference "Supporting the future of Syria and the region". -To reinforce, in payment appropriations, the Humanitarian Aid to cover the needs in pre-financing payments as a result of the reinforcements in commitment appropriations, decided at the end of 2017, from the Emergency Aid Reserve and as part of the Year-end transfer. -To modify the establishment plan of the Innovation & Networks Executive Agency (INEA) in the context of the WiFi4EU initiative. Overall this amending budget is neutral. 2. Cancellation of the reserve related to the support to Turkey from the Instrument for Pre-Accession (IPA II) In the context of the budgetary procedure 2018, the European Parliament and the Council decided to place in reserve EUR 70 million in commitment appropriations and EUR 35 million in payment appropriations on the budget item 22 02 03 01 Support for political reforms and related progressive alignment with the Union acquis. This budget line relates to the support to Turkey from the Instrument for Pre-Accession (IPA II). The condition set to release these amounts reads as follows : "(…) when Turkey makes measurable sufficient improvements in the fields of rule of law, democracy, human rights and press freedom, according to the annual report of the Commission". The Commission's annual report on Turkey, published on 17 April 2018, is unequivocal in its findings that there have been no measurable improvements and that, rather, Turkey continues to move further away from Europe, especially with regard to the continued under-performance on the rule of law, democracy and human rights. The ongoing state of emergency declared in the wake of the attempted coup of 15 July 2016 and the scope of actions taken under it have led to a severe curtailment of civil and political rights including freedom of expression and freedom of assembly. The independence of the judiciary and the right to a fair trial have been widely undermined while civil society has been under increasing pressure. Since the introduction of the state of emergency, over 150,000 people have been taken into custody including over 150 journalists. Since the publication of the annual report, there has been no reversal of the trends mentioned above. The condition set by the European Parliament and the Council has therefore not been met and it is consequently proposed to cancel fully the related amounts in reserve, both in commitment and payment appropriations, as well as the related budget remarks, and increase the European Neighborhood instrument (ENI) and Humanitarian Aid instead.



in EUR Budget line Name Commitment appropriations Payment appropriations 40 02 41 Differentiated appropriations (Reserve for budget item 22 02 03 01 – Instrument for Pre-accession Assistance – Turkey Support for political reforms and related progressive alignment with the Union acquis) -70 000 000 -35 000 000 Total -70 000 000 -35 000 000 3. Reinforcement of the European Neighbourhood Instrument (ENI) in commitment appropriations The Commission proposes to reinforce the European Neighbourhood Instrument (ENI) with EUR 70 million in commitment appropriations in order to fund additional urgent actions linked to the Central Mediterranean migratory route and to fulfil part of the pledge made at the 24-25 April 2018 Brussels II conference "Supporting the future of Syria and the region". To this end the funds will be channelled to the North Africa window of the EU Trust Fund Africa and to the Madad EU Trust Fund (for Syria). EUR 28 million would be transferred to the EUTF Africa's North Africa window in order to contribute to closing the financing gap of EUR 225 million identified for 2018-2019 and confirmed in the last two progress reports on the Implementation of the European Agenda on Migration. In the case of Libya the additional funding will mainly relate to the voluntary return of vulnerable stranded migrants. In addition, and despite an overall decrease of illegal border crossing in 2018, movements from Morocco and Tunisia towards Europe are increasing and call for renewed support to the root causes of irregular migration in Tunisia and to the effective implementation of the integration strategy of Morocco.