COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL concerning the revision of the multiannual financial framework (2007-2013) Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management as regards the multiannual financial framework
Date: 2007-09-19
Institutions: Provisional data
Subjects: EU office or agency, budgetary discipline (EU), financial management, higher education, interinstitutional agreement, revision of financial perspectives, satellite navigation, technology

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 19.9.2007 
COM(2007) 549 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT AND THE COUNCIL  

concerning the revision of the multiannual financial framework (2007-2013) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and 
sound financial management as regards the multiannual financial framework 

(presented by the Commission) 

EN 

   EN 

 
 
 
  
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT AND THE COUNCIL  

concerning the revision of the multiannual financial framework (2007-2013) 

Financing of the European GNSS programmes (EGNOS-GALILEO) 

Financing of the European Institute of Technology 

This Communication contains the Commission's proposal for the revision of the multiannual 
financial framework (hereinafter referred to as "the financial framework") in accordance with 
Points  21  to  23  of  the  Interinstitutional  Agreement  (IIA)  of  17  May  2006  on  budgetary 
discipline and sound financial management.  

Point 21 of the IIA provides that, in the event of unforeseen circumstances, the Commission 
may  propose  the  revision  of  the  financial  framework  in  compliance  with  the  own  resources 
ceiling.  

According to Point 22, any decision to revise the financial framework by up to 0.03% of the 
European  Union  GNI  needs  to  be  taken  jointly  by  both  arms  of  the  budgetary  authority  in 
compliance with the voting rules laid down in the fifth subparagraph of Article 272(9) of the 
Treaty  establishing  the  European  Community.  Any  revision  above  0.03%  of  the  European 
Union  GNI  will  be  taken  jointly  by  both  arms  of  the  budgetary  authority,  with  the  Council 
acting unanimously. 

Point 23 of the IIA introduces a number of specific conditions the institutions need to respect: 

(1) 

(2) 

(3) 

(4) 

The  institutions  will  examine  the  scope  for  reallocating  expenditure  between  the 
programmes  covered  by  the  heading  concerned  by  the  revision,  with  particular 
reference to any expected under-utilisation of appropriations. The objective should be 
that a significant amount, in absolute terms and as a percentage of the new expenditure 
planned, should be within the existing ceiling for the heading.  

The institutions will examine the scope for offsetting any raising of the ceiling for one 
heading by the lowering of the ceiling for another. 

Any revision of the compulsory expenditure in the financial framework must not lead 
to a reduction in the amount available for non-compulsory expenditure1. 

Any  revision  must  maintain  an  appropriate  relationship  between  commitments  and 
payments. 

1 

Condition not applicable in the case of the present proposal. 

EN 

2 

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1. 

ADDITIONAL FINANCING NEEDS DUE TO UNFORESEEN CIRCUMSTANCES 

The  Commission  considers  that  new  developments  relating  to  the  financing  of  the  Galileo 
Programme,  for  an  additional  amount  of  EUR  2,400  million,  and  the  financing  of  the 
European Institute of Technology, for an additional amount of EUR 309 million, justify the 
revision of the financial framework. 

1.1. 

Developments in the Galileo programme 

Further to the financial framework agreed between the institutions, an amount of EUR 1.005 
billion at current prices has been programmed under heading 1A "Competitiveness for growth 
and  employment"  according  to  the  Commission's  proposal2  for  the  financing  of  the 
deployment and operational phases of the Galileo programme during the period from 2007 to 
2013.  

That  proposal  was  based  on  the  initial  road  map,  which  foresaw  three  phases:  development 
and  in-orbit  validation,  deployment,  and  operations.  The  development  phase  was  to  be 
entirely financed by the public sector, whereas the deployment and operational phases were to 
be financed by both the public and the private sectors in the framework of a public-private-
partnership  (PPP)  and  implemented  under  a  concession  contract.  The  EU  would  contribute 
about  one-third  of  the  financing  during  the  deployment  phase  and  a  financial  contribution 
would  be  provided  for  the  3  first  years  of  operational  expenses.  Taken  together,  it  was 
estimated that the EU would contribute EUR 1.0 billion over the 2007-2013 period under the 
Community budget. 

The  concession  call  was  launched  on  17  October  2003  and  resulted  in  a  single  negotiating 
partner,  "Euro-GNSS",  stemming  from  a  merged  consortium  composed  of  8  partners.  The 
negotiations  effectively  started  in  January  2006,  following  internal  industrial  disagreement 
and a mediation with regard to the division of role and responsibilities (and locations of major 
ground  installations  of  the  system).  However,  the  negotiations  on  the  concession  contract 
came to a stop at the beginning of 2007. The Council (Transport Ministers) which met on 22 
March  2007  asked  the  Commission  a  detailed  report  setting  out  the  progress  made  in  the 
negotiations  with  the  consortium  and  alternative  scenarios  for  the  rapid  deployment  of  the 
space infrastructure, including financing aspects. The European Parliament called also on the 
Commission to come forward with appropriate proposals3. 

In response to these requests, the Commission adopted on 16 May 2007 a Communication on 
the state of play of the Galileo programme, "Galileo at a cross road: the implementation of 
the European GNSS programmes", complemented by a Commission staff working document4. 
Under the scenario retained, the full operational capacity with 30 satellites shall be financed 
and procured by the public  sector followed by a PPP under a concession scheme to run the 
operations and exploitation activities. The initial operational capacity shall be reached by end-
2011 with 18 satellites and the full operational capacity shall be reached by end-2012 with 30 

2 

3 

4 

COM(2004)  477  final/2,  24.5.2006  (Amended  proposal  for  a  Regulation  of  the  European  Parliament 
and of  the  Council  on  the  implementation  of  the deployment  and  operational  phases of  the  European 
satellite radio navigation programme). 
European Parliament Resolution of 26 April 2007 on the Galileo concession contract negotiations (P6-
TAPROV(2007)0164). 
COM(2007) 261, 16.5.2007 and SEC(2007) 624, 16.5.2007. 

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satellites.  The  public  procurement  of  the  full  infrastructure  requires  an  investment  for  the 
period 2007-2013 amounting to  EUR 3.4 billion. The PPP concession  contract would  cover 
the period 2010-2030. 

Based  on  this  Communication,  the  Council  of  Transport  Ministers  of  6-8  June  2007 
concluded  that  the  current  concession  negotiations  had  failed  and  had  to  be  ended.  It 
reaffirmed the value of Galileo as a key project of the European Union and supported, without 
prejudice to a final decision, the deployment of the Galileo system by the end of 2012. The 
Council recognised that the implementation of a deployment of the Galileo programme by the 
public sector would need additional public funding and requested the Commission to submit 
detailed alternative proposals for the financing, including all options of public funding, based 
on additional thorough assessments of costs, risks, revenues and timetables.  

In parallel, the European Parliament adopted a resolution on 20 June 2007 recalling its strong 
support to continue the Galileo programme, but opposing any solution which would combine 
Community  funding  with  intergovernmental  additional  funding.  The  resolution  called  for  a 
full financing of the programme under the Community Budget and invited the Commission to 
take the initiative of proposing a revision of the financial framework as provided for in Point 
22 of the IIA or by other means provided by the IIA5.  

its  Communication  on  "Progressing  Galileo:  Re-Profiling 

In 
the  European  GNSS 
Programmes"6, the Commission provided a detailed analysis of the various financing options, 
recommending that the financial framework be revised to fill the public financing gap.  

Since an amount of EUR 1.0 billion has already been programmed under heading 1A of the 
financial  framework,  the  financing  of  the  full  amount  referred  to  above  through  the 
Community budget requires the mobilisation of additional EUR 2.4 billion under this heading 
with the following commitment profile: 

Commitment Appropriations 
Galileo 

(EUR million, current prices) 

Currently programmed 
commitments  

2007 

2008 

2009 

2010 

2011 

2012 

2013 

2007-
2013 

100 

151 

201 

251 

151 

151 

0 

1 005 

Additional commitments required  

0  + 789  + 599  + 739  + 120 

+ 96 

+ 57 

+ 2 400 

Total commitments EC budget  

100 

940 

800 

990 

271 

247 

57 

3 405 

5 

6 

European  Parliament  Resolution  of  20  June  2007  on  the  financing  of  the  European  programme  of 
satellite  radionavigation  (Galileo)  under  the  Interinstitutional  Agreement  of  17  May  2006  and  the 
multiannual framework 2007-2013 [P6_TA-PROV(2007)072 - PE 391.046/51]. 
COM(2007) 534, 19.9.2007. 

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1.2. 

Developments related to the European Institute of Technology (EIT) 

The proposal to establish a European Institute of Technology was put forward in 2005 as part 
of the mid-term review of the Lisbon strategy. It has been further developed on the basis of a 
public consultation in which the most important university, research, business and industrial 
innovation  organisations  took  part.  The  concept  was  presented  in  a  first  Commission 
Communication: "Implementing the renewed partnership for growth and jobs - Developing a 
knowledge  flagship:  the  European  Institute  of  Technology"7.  In  June  2006,  the  Commission 
further  elaborated  the  concept  in  a  second  communication:  "The  European  Institute  of 
Technology: further steps towards its creation"8, which drew extensively on the outcome of 
the consultation process and shed light on a number of specific issues related to the proposed 
structure and operation of the EIT.  

The  European  Council  of  15-16  June  2006  reaffirmed  that  “the  European  Institute  for 
Technology  (EIT),  working  with  existing  national  institutions,  will  be  an  important  step 
towards  filling  the  existing  gap  between  higher  education,  research  and  innovation  together 
with  other  actions  that  enhance  networking  and  synergies  between  excellent  research  and 
innovation communities in Europe.” It invited the Commission to prepare a formal proposal 
for  the  establishment  of  the  EIT.  This  proposal  was  adopted  by  the  Commission  on  18 
October 20069. It foresees an amount of EUR 308.7 million for the period 2008-2013 for the 
financing  of  the  EIT  under  heading  1A.  This  amount  will  cover  the  costs  of  the  EIT's 
governing  structure  and  the  European  dimension  of  the  project,  notably  the  costs  of 
coordination  and  mobility  that  are  necessary  to  sustain  the  "Knowledge  and  Innovation 
Communities" (KICs). This amount will represent only a percentage of the total EIT budget, 
as  both  the  EIT  and  the  KICs  are  expected  to  attract  other  sources  of  financing,  including 
from the private sector. 

No specific provision was made for the EIT in the course of the negotiations on the financial 
framework 2007-2013. The Commission considered that the unallocated margins beneath the 
ceilings  of  heading  1A  could  be  sufficient  to  finance  the  launching  of  the  EIT.  Thus,  the 
proposed  amount  of  EUR  308.7  million  was  included  in  the  financial  programming  of 
heading 1A10, leaving a margin of EUR 788.2 million over the 2008-2013 period. However, 
no agreement was reached by Council and the European Parliament, neither on the proposed 
source  of  financing  nor  on  alternative  financing  solutions  discussed  at  various  Trilogue 
meetings. The Commission thus sees no alternative to proposing to cover the financing needs 
for  the  EIT through  an  increase  of  the  ceiling  of  heading  1A  by  means  of  a  revision  of  the 
financial framework. 

7 
8 
9 
10 

COM(2006) 77, 22.2.2006. 
COM(2006) 276, 8.6.2006. 
COM(2006) 604, 18.10.2006. 
SEC(2007)  500,  May  2007  –  Document  V  of  the  Preliminary  Draft  Budget  2008  –  Financial 
programming 2008-2013. 

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The profile of the additional commitments appropriations required for the EIT, based on the 
amended financial statement11, is as follows: 

Commitment Appropriations 

2007  2008  2009  2010  2011  2012  2013  2007-2013 

(EUR million, current prices) 

- additional commitments EIT funding 

0 

+ 3 

+ 6  + 30  + 63  + 80  + 127 

+ 309 

2. 

SCOPE FOR REALLOCATING EXPENDITURE UNDER THE CEILING OF HEADING 1A 

In  accordance  with  Point  23  of  the  IIA,  the  Commission  has  analysed  the  possibilities  to 
mobilise  the  additional  financing  needs  of  EUR  2,400  million  for  Galileo  and  EUR  309 
million for the EIT (that is EUR 2,709 million in total) under the current ceiling of heading 
1A.  It  appears  that  the  programmes  have  all  been  adopted  with  their  respective  envelopes 
without possibility at this stage to redeploy or re-profile significantly the envelopes within the 
annual  ceilings.  As  regards  possible  under-utilisation  with  respect  to  appropriations,  it  is 
unrealistic  to  make  any  assumptions  at  this  very  early  stage  of  the  programming  period. 
However,  the  Commission  proposes  that  EUR  300  million  be  made  available  within  the 
transport related research activities financed under the 7th Research Framework Programme12. 

Point  13  of  the  IIA  provides  that  the  institutions  are  required  to  ensure  that  "sufficient 
margins"  are  left  available  beneath  the  ceilings.  According  to  the  latest  financial 
programming13, and excluding the EIT financing, the margin amounts to a total of EUR 1,097 
million  for  the  years  2008-2013,  with  most  of  it  available  towards  the  end  of  the  period 
whereas Galileo  requires  most of the  additional funding at the beginning  of the period. The 
Commission concludes, with a view to Point 13 of the IIA, that the margins of heading 1A 
cannot be used to cover the additional financing needs of the Galileo programme and the EIT. 

3. 

SCOPE  FOR  OFFSETTING  THE  RAISING  OF  ONE  CEILING  BY  LOWERING  ANOTHER 
CEILING 

After  deduction  of  the  EUR  300  million  for  Galileo  activities  to  be  financed  from  the  7th 
Research  Framework  Programme,  a  financing  gap  of  EUR  2,409  million  needs  to  be  filled. 
This  amount  can  be  provided  by  using  the  margins  of  heading  2  "Preservation  and 
Management  of  Natural  Resources"  and  heading  5  "Administration"  available  in  2007  and 
2008.  

The  current  2007  Budget  and  the  Preliminary  Draft  Budget  (PDB)  for  2008  result  in 
substantial margins being available under heading 2, respectively EUR 2.1 billion in 2007 and 
EUR  2.5  billion  in  2008.  These  margins  are  almost  entirely  the  result  of  the  foreseeable 
execution within the sub-ceiling "Market related expenditure and direct payments" (EAGF). 

11 
12 
13 

SEC(2007) 1220. 
Title 06 of the budget. 
SEC(2007)  500,  May  2007  –  Document  V  of  the  Preliminary  Draft  Budget  2008  –  Financial 
programming 2008-2013. 

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Up-to-date  information  on  budget  execution  confirms  the  availability  of  a  margin  of  EUR 
2,100  million  under  heading  2  in  2007.  Therefore  it  is  considered  that  this  ceiling  can  be 
lowered by an amount of EUR 1,689 million.  

With  regard  to  the  PDB  2008,  the  combined  effect  of  favourable  market  conditions  in  the 
agricultural sector and assigned revenue carried over from 2007 to 2008 leads to an increase 
of the global margin under heading 2 compared to the budget 2007. Overall, for heading 2, a 
margin  of  EUR  2,500  million  is  foreseen  for  2008.  At  this  stage,  the  letter  of  amendment, 
which updates the figures of the draft budget 2008, is not expected to reduce this margin. The 
Commission  considers  thus  that  lowering  the  annual  ceiling  for  heading  2  by  EUR  500 
million will leave a sufficient margin for 2008.  

Consequently,  the  Commission  proposes  to  decrease  the  annual  ceilings  for  commitment 
appropriations under heading 2 by EUR 1,689 million for 2007 and by EUR 500 million for 
2008. 

In addition, the Commission proposes to decrease the ceilings of Heading 5 "Administration" 
by EUR 120 million in 2007 and by EUR 100 million in 2008, which to-date leaves a margin 
of EUR 16 million in 2007 and of EUR 70 million in 2008. 

The Commission thus proposes to increase the annual ceilings of heading 1 A for the years 
2008 to 2013 by a total amount of EUR 2,409 million to be offset by a decrease of the ceilings 
of headings 2 and 5 for the years 2007 and 2008.  

4. 

MAINTAINING  AN  APPROPRIATE  RELATIONSHIP  BETWEEN  COMMITMENTS  AND 
PAYMENTS 

Point 23 of the IIA also requires that any revision must maintain an appropriate relationship 
between commitments and payments. 

Under the 2007 Budget and the 2008 PDB, the margins under the annual ceilings for payment 
appropriations  amount  to  EUR  8,293  million  and  EUR  8,215  million  respectively14. 
Consequently,  the  Commission  proposes  to  offset  the  increase  in  payment  appropriations 
required  for  the  financing  of  both  programmes  by  a  decrease  of  payment  appropriations  in 
2007  and  2008.  Based  on  the  payment  profiles  foreseen  for  Galileo  and  the  EIT  in  the 
respective (amended) financial statements , this approach results in the following modification 
of the annual ceilings for payment appropriations: 

Total payment appropriations  
(EUR million, current prices) 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

2007-
2013 

- current IIA ceiling 

123 790  129 481 

123 646  133 202  133 087  139 908  142 180 

925 294 

- required modification  

- 1 809 

- 391 

+ 329

+ 471

+ 568

+ 454 

+ 354

- 24

Overall,  this  modification  is  neutral  in  budgetary terms, taking into  consideration  additional 
payments of EUR 24 million arising after 2013 under the payment profile of the EIT. 

14 

The  margin  for  the  payments  does  not  take  into  account  the  appropriations  related  to  the  Emergency 
Aid  Reserve  (EUR  239.2  million)  and  to  the  staff  contributions  to  the  pension  scheme  (EUR  77 
million).  

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5. 

OVERVIEW OF THE PROPOSED REVISION OF THE FINANCIAL FRAMEWORK 

The table below summarises the proposed changes to the ceilings in the financial framework. 
These amounts are expressed in current prices. 

Commitment appropriations (EUR million) 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

total 

Heading 1A - Competitiveness for Growth 
and Employment 

- 

+ 742  + 555  + 719  + 133  + 126  + 134  +2 409 

Financing of the EIT 

- 

+ 3 

+ 6 

+ 30 

+ 63 

+ 80  + 127 

+ 309 

Financing of the Galileo programme * 

+ 739  + 549  + 689 

+ 70 

+ 46  

+ 7 

+2100 

Heading 2 - Preservation and Management 

- 1 689 

- 500 

of Natural Resources 

Heading 5 - Administration 

-120 

-100 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 2 189 

- 

- 220 

Total change in commitment 
appropriations 

- 1 809 

+ 142  + 555  + 719  + 133  + 126  + 134 

0 

Total change in payment appropriations 

- 1 809 

- 391  + 329  + 471 + 568  + 454  + 354

- 24 

* in addition € 300m available within the 7th 

Research Framework Programme 

50 

50 

50 

50 

50 

50 

300 

Total reinforcement for Galileo 

789 

599 

739 

120 

96  

57 

2400 

These changes result in the below financial framework table applicable to 2008, incorporating 
the technical adjustment already made for 200815.  

The formal decision on the revision of the financial framework must refer to the basic table 
agreed in the IIA, which is expressed in constant 2004 prices. The amounts in current values 
are  thus  to  be  converted  into  2004  prices  by  means  of  a  fixed  deflator  of  2%  a  year,  in 
accordance with Point 16 of the IIA. 

15 

Commission  Communication  on  the  technical  adjustment  of  the  financial  framework  for  2008  in  line 
with movements in GNI - COM(2007) 208, 24.4.2007. 

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FINANCIAL FRAMEWORK 2007-2013 (revised) 

(EUR million – current prices) 

COMMITMENT APPROPRIATIONS

1. Sustainable Growth

1a Competitiveness for Growth and Employment
1b Cohesion for Growth and Employment

2. Preservation and Management of Natural Resources
of which: market related expenditure and direct payments

3. Citizenship, freedom, security and justice

3a Freedom, Security and Justice
3b Citizenship

4. EU as a global player
5. Administration (1)
6. Compensations

2007

54 405

8 918

45 487

56 662

45 759

1 273

637

636

6 578

6 919

445

2008

57 478

10 589

46 889

58 300

46 217

1 362

747

615

7 002

7 280

207

2009

59 752

11 324

48 428

59 252

46 679

1 523

872

651

7 440

7 699

210

2010

61 863

12 469

49 394

59 726

47 146

1 693

1 025

668

7 893

8 008

2011

63 734

13 107

50 627

60 191

47 617

1 889

1 206

683

8 430

8 334

2012

66 766

14 365

52 401

60 663

48 093

2 105

1 406

699

8 997

8 670

2013

69 812

15 624

54 188

61 142

48 574

2 376

1 661

715

9 595

9 095

Total
2007-2013
433 810

86 396

347 414

415 936

330 085

12 221

7 554

4 667

55 935

56 005

862

TOTAL COMMITMENT APPROPRIATIONS

126 282

131 629

135 876

139 183

142 578

147 201

152 020

974 769

as a percentage of GNI

1.06%

1.06%

1.05%

1.03%

1.01%

1.00%

1.00%

1.03%

TOTAL PAYMENT APPROPRIATIONS

121 981

129 090

123 975

133 673

133 655

140 362

142 534

925 270

as a percentage of GNI
Margin available
Own Resources Ceiling as a percentage of GNI

1.02%

0.22%

1.24%

1.04%

0.20%

1.24%

0.95%

0.29%

1.24%

0.99%

0.25%

1.24%

0.95%

0.29%

1.24%

0.96%

0.28%

1.24%

0.94%

0.30%

1.24%

0.98%

0.26%

1.24%

(1) The expenditure on pensions included under the ceiling for this heading is calculated net of the staff contributions to the relevant scheme, within the limit of € 500 million at 
2004 prices for the period 2007-2013.

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Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and 
sound financial management as regards the multiannual financial framework 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Interinstitutional  Agreement  of  17  May  2006  on  budgetary  discipline 
and sound financial management16, and in particular to Points 21, 22 and 23 thereof, 

Having regard to the proposal from the Commission17, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

16 
17 
18 
19 
20 

21 

In 2004, the Commission submitted a proposal for a Regulation on the implementation 
of  the  deployment  and  commercial  operating  phases  of  the  European  programme  of 
satellite radionavigation18 (Galileo). 

The proposed Regulation foresaw an amount of EUR 1.005 billion at current prices19 
provided  from  the  Community  budget  to  finance  the  deployment  and  operational 
phases of Galileo during the period from 2007 to 2013, whereas the remaining funding 
required was to be provided by the private sector under a concession contract. 

The negotiations for the concession contract have failed to transfer at a reasonable cost 
the financing part of the Galileo programme to be assumed by the private sector20.  

Both the European Parliament and the Council have reaffirmed the value of Galileo as 
a  key  project  of  the  European  Union  and  recognised  the  need  for  additional  public 
funding21. 

OJ C 139, 14.6.2006, p. 1. 
COM(2007) 549, 19.9.2007. 
COM(2004) 477 final/2. 
EUR 900 million at 2004 prices. 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic  and  Social  committee  and  the  Committee  of  the  Regions,  "Galileo  at  a  Cross-Road:  The 
Implementation  of  the  European  GNSS  Programmes"  -  COM(2007)  261,  16.5.2007  -  and  Council 
resolution  on  Galileo  adopted  on  the  2805th  Transport,  Telecommunications  and  Energy  Council 
meeting, Luxembourg, 6-8 June 2007. 
European  Parliament  resolution  of  20  June  2007  on  the  financing  of  the  European  programme  of 
satellite  radionavigation  (Galileo)  under  the  Interinstitutional  Agreement  of  17  May  2006  and  the 
multiannual financial framework 2007-2013 [PE 391.046, p. 51 – P6_TA-PROV(2007)0272] and above 
mentioned Council Resolution on Galileo. 

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(5) 

(6) 

(7) 

(8) 

(9) 

On  19  September  2007,  the  Commission  has  adopted  a  Communication  to  the 
European  Parliament  and  the  Council  on  "Progressing  Galileo:  Re-Profiling  the 
European  GNSS  Programmes"22  and  an  amended  proposal  for  a  Regulation  of  the 
European Parliament and the Council on the continuation of the implementation of the 
European programmes of satellite radionavigation (EGNOS and Galileo)23. 

The additional public funding required for the deployment of full operational capacity 
financed and procured by the public sector amounts to EUR 2 400 million in current 
prices. 

The Commission has presented a proposal for a Regulation establishing the European 
Institute  of  Technology  (EIT)24  with  a  specific  Community  budget  contribution  of 
EUR 308.7 million in current prices for the financing of the governing structure of the 
EIT and of coordination activities of the "Knowledge and Innovation Communities". 
The  financing  of  the  EIT  was  not  foreseen  when  the  negotiations  on  the  current 
financial framework were concluded. 

EUR 300 million can be made available within the transport related research activities 
financed  under  the  Seventh  Research  Framework  Programme25.  The  remaining 
additional financing requirement for Galileo and the European Institute of Technology 
amounts to EUR 2 409 million, which requires raising the annual ceilings of heading 
1A for the years 2008 to 2013. 

The required increase of the global ceiling of heading 1A can be offset by a decrease 
of  the  ceilings  for  heading  2  "Preservation  and  Management  of  Natural  Resources" 
and heading 5 "Administration" for the years 2007 and 2008. 

(10)  Similarly,  in  order  to  keep  an  appropriate  relationship  between  commitments  and 
payments,  the  annual  ceilings  for  payment  appropriations  should  be  adjusted  taking 
into account the margins available in 2007 and 2008. 

(11)  Annex  I  of  the  Interinstitutional  Agreement  on  budgetary  discipline  and  sound 

financial management should therefore be amended accordingly, 

HAVE DECIDED AS FOLLOWS: 

Annex  I  to  the  Interinstitutional  Agreement  on  budgetary  discipline  and  sound  financial 
management is replaced by the Annex to this Decision. 

Sole Article 

22 
23 
24 
25 

COM(2007) 534, 19.9.2007. 
COM(2007) 535, 19.9.2007. 
COM(2006) 604 final/2. 
Title 06 budget. 

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Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

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ANNEX  

FINANCIAL FRAMEWORK 2007-2013 (revised) 

COMMITMENT APPROPRIATIONS

1. Sustainable Growth

1a Competitiveness for Growth and Employment
1b Cohesion for Growth and Employment

2. Preservation and Management of Natural Resources
of which: market related expenditure and direct payments

3. Citizenship, freedom, security and justice

3a Freedom, Security and Justice
3b Citizenship

4. EU as a global player
5. Administration (1)
6. Compensations

2007

51 267

8 404

42 863

53 394

43 120

1 199

600

599

6 199

6 520

419

2008

53 101

9 783

43 318

53 860

42 697

1 258

690

568

6 469

6 726

191

2009

54 118

10 256

43 862

53 666

42 279

1 380

790

590

6 739

6 973

190

2010

54 932

11 072

43 860

53 035

41 864

1 503

910

593

7 009

7 111

2011

55 483

11 410

44 073

52 400

41 453

1 645

1 050

595

7 339

7 255

2012

56 983

12 260

44 723

51 775

41 047

1 797

1 200

597

7 679

7 400

(EUR million - 2004 prices)

2013

58 415

13 073

45 342

51 161

40 645

1 988

1 390

598

8 029

7 610

Total
2007-2013
384 299

76 258

308 041

369 291

293 105

10 770

6 630

4 140

49 463

49 800

800

TOTAL COMMITMENT APPROPRIATIONS

118 998

121 605

123 066

123 590

124 122

125 634

127 203

864 218

as a percentage of GNI

1.10%

1.08%

1.07%

1.04%

1.03%

1.02%

1.01%

1.048%

TOTAL PAYMENT APPROPRIATIONS

114 945

119 259

112 288

118 698

116 355

119 798

119 266

820 609

as a percentage of GNI
Margin available
Own Resources Ceiling as a percentage of GNI

1.06%

0.18%

1.24%

1.06%

0.18%

1.24%

0.97%

0.27%

1.24%

1.00%

0.24%

1.24%

0.97%

0.27%

1.24%

0.97%

0.27%

1.24%

0.95%

0.29%

1.24%

1.00%

0.24%

1.24%

(1) The expenditure on pensions included under the ceiling for this heading is calculated net of the staff contributions to the relevant scheme, within the limit of € 500 million at 
2004 prices for the period 2007-2013.

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