Increasing the budgetary resources of the Youth Employment Initiative (YEI) to pursue the reduction of youth unemployment across the European Union and updating the staff establishment plans of the decentralised agency ACER and the joint undertaking SESAR2

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.

The European Commission hereby presents draft amending budget No 3 to the 2017 budget to the European Parliament and to the Council.

–the general budget of the European Union for the financial year 2017, as adopted on 1 December 2016,

–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 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,

1.Introduction

The purpose of Draft Amending Budget (DAB) No 3 for the year 2017 is twofold:

-The provision of EUR 500 million of additional commitment appropriations to the Youth Employment Initiative (YEI) as agreed by the European Parliament and the Council in their agreement on the budget 2017. No reinforcement in payment appropriations is proposed.

-An amendment of the establishment plans of the decentralised agency ACER and the joint undertaking SESAR2, without incurring any changes to the overall budget or the total number of posts.

2.Reinforcement of the Youth Employment Initiative (YEI)

2.1 Context of the reinforcement

The creation of the Youth Employment Initiative (YEI) was agreed in 2013 as a response to the exceptionally high youth unemployment levels across the EU with a dedicated allocation of EUR 3,2 billion in current prices to provide direct targeted support to young people not in employment, education, or training residing in regions with youth unemployment rates higher than 25% in 2012. In order to speed up implementation, the full allocation in terms of commitments under the 2014-20 period was frontloaded to 2014 and 2015.

Despite initial delays, the structures for implementing the YEI are now in place. First evaluations point to significantly improved opportunities for young people who received support from the initiative in finding employment or continuing their studies afterwards.

Youth unemployment rates have decreased in most Member States in comparison to the reference year of 2012 but they are still above 2008 (pre financial crisis) levels. This situation calls for continued efforts and support at EU level which is why the European Parliament and the Council in their agreement on the budget 2017 invited "the Commission to propose an amending budget in 2017 in order to provide EUR 500 million for the YEI in 2017 financed by the Global Margin for Commitments, as soon as the technical adjustment foreseen in article 6 of the MFF Regulation is adopted."

The technical adjustement having now been adopted, the Commission proposes to amend the budget 2017 to reflect the above-mentioned agreement of the European Parliament and Council.

2.2 Financing

In line with Article 14 of the MFF Regulation, the reinforcement in commitment appropriations of the YEI will be financed from the Global Margin for Commitments (GMC).

The Commission considers that this reinforcement will not translate into additional payment needs in 2017. Before any payments on the reinforcement can be made, all relevant operational programmes have to be amended. This process is expected to be completed in the second half of 2017, which is after the legal deadline for paying the 2017 annual pre-financing as stipulated in the Common Provisions Regulation (EU) No 1303/2013. Furthermore, it is not expected that the additional commitments will translate into interim payment claims being submitted in 2017.

3.Update of the staff establishment plans of the decentralised agency ACER and the Joint Undertaking SESAR2

3.1 Agency for the Cooperation of Energy Regulators (ACER)

Taking into account the rules on the establishment plans for staff set out in Article 50 of the Financial Regulation , it is proposed to amend the 2017 establishment plan of the Agency for the Cooperation of Energy Regulators (ACER), while the total number of posts will remain unchanged. This amendment is necessary to fulfil the requirements for the 2017 reclassification exercise in ACER, where a misalignment has occurred between the establishment plan and the necessary grades. This can be financed within ACER's budget for this year. Consequently, a reinforcement of the EU contribution to the agency is not required.

The updated establishment plan is set out in the budgetary annex.

3.2 Single European Sky Air Traffic Management Research (SESAR2)

The Single European Sky Air Traffic Management (ATM) Research Joint Undertaking (SESAR2) is the Union’s ATM modernisation project and a key component of the Single European Sky policy and of the Aviation Strategy for Europe. The proposed amendment of the 2017 establishment plan of SESAR2 is necessary in order to allow for the reclassification of its Executive Director (from AD14 to AD15) upon mandate renewal (1 April 2017) following the favourable evaluation by the Administrative Board of the Joint Undertaking and the Commission. Moreover, a misalignment has occurred between the establishment plan of SESAR2 and the grades.