Preliminary draft amending budget n° 3 to the general budget 2008 - Statement of expenditure by section - Section III - Commission - Section VI - Economic and Social Committee
Date: 2008-04-14
Institutions: Directorate-General for Budget, European Commission
Subjects: European Commissioner, European Economic and Social Committee, amending budget, budgetary expenditure, preliminary draft EC budget

EN 

EN 

   EN 

 
 
COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 14.4.2008 
COM(2008) 201 final 

PRELIMINARY DRAFT AMENDING BUDGET N° 3  
TO THE GENERAL BUDGET 2008 

STATEMENT OF EXPENDITURE BY SECTION 
Section III - Commission 
Section VI - Economic and Social Committee 

EN 

   EN 

 
 
 
  
 
 
PRELIMINARY DRAFT AMENDING BUDGET N° 3  
TO THE GENERAL BUDGET 2008 

STATEMENT OF EXPENDITURE BY SECTION 
Section III - Commission 
Section VI - Economic and Social Committee 

Having regard to: 

– 

– 

– 

the  Treaty  establishing  the  European  Community,  and  in  particular  Article 272 
thereof, 

the  Treaty  establishing  the  European  Atomic  Energy  Community,  and  in  particular 
Article 177 thereof, 

the  Council  Regulation  (EC,  Euratom)  No  1605/2002  of  25  June  2002  on  the 
Financial Regulation applicable to the general budget of the European Communities1, 
as amended by Council Regulation (EC, Euratom) No 1995/20062, and in particular 
Article 37 thereof, 

The European Commission hereby presents to the budgetary authority the Preliminary Draft 
Amending Budget No 3 to the 2008 budget. 

1 
2 

OJ L 248, 16.9.2002, p. 1. 
OJ L 390, 30.12.2006, p. 1. 

EN 

2 

   EN 

 
                                                      
TABLE OF CONTENTS 

1. 

2. 

3. 

4. 

5. 

6. 

6.1. 

6.2. 

6.3. 

7. 

8. 

Introduction .................................................................................................................. 4 

Microsoft ...................................................................................................................... 4 

Salaries Adjustment ..................................................................................................... 5 

Blue tongue Vaccination Campaign............................................................................. 6 

Joint Technology Initiatives......................................................................................... 7 

Mobilisation of the EU Solidarity Fund....................................................................... 9 

Greece: Forest Fires August 2007.............................................................................. 10 

Slovenia: Floods September 2007.............................................................................. 11 

Financing.................................................................................................................... 11 

Modification of the Establishment Plan of the European Institute for Gender Equality
.................................................................................................................................... 12 

Modification of the Establishment Plan of the European Economic and Social 
Committee .................................................................................................................. 12 

SUMMARY TABLE BY HEADING OF THE FINANCIAL FRAMEWORK ..................... 14 

CHANGES TO THE GENERAL STATEMENT OF REVENUE 

CHANGES  TO  THE  STATEMENT  OF  REVENUE  AND  EXPENDITURE  BY 
SECTION 

The changes to the general statement of revenue and the statement of revenue and expenditure 
by  section  are  forwarded  separately  via  the  SEI-BUD  system.  An  English  version  of  the 
changes  to  the  general  statement  of  revenue  and  statement  of  revenue  and  expenditure  by 
section is attached for information as a budgetary annex. 

EN 

3 

   EN 

 
1. 

INTRODUCTION 

Preliminary  Draft  Amending  Budget  (PDAB)  No 3  for  the  year  2008  covers  the  following 
elements: 

–  The budgeting of the revenue accruing from the Microsoft case. 

–  The budgeting of part of the savings arising from the smaller than estimated increase for 
pay and pensions in 2007, leading to a reduction of EUR 2,3 million in commitment and 
payment appropriations under heading 5.  

–  Reinforcement of the emergency fund for veterinary measures due to the bluetongue crisis 
by  EUR 130 million  in  commitment  appropriations,  and  EUR 63,95 million  in  payment 
appropriations. 

–  The creation of the necessary budgetary structure to accommodate four Joint Technology 
Initiatives:  Innovative  Medicines  Initiative  (IMI),  Clean  Sky,  ARTEMIS  (Joint 
Technology  Initiative  in  Embedded  Computing  Systems)  and  ENIAC  (European 
Technology Platform on Nanoelectronics). 

–  Mobilisation of the EU Solidarity Fund for an amount of EUR 98 million in commitment 
and payment appropriations relating to forest fires in Greece in August 2007 and floods in 
Slovenia in September 2007.  

–  Modifications to the establishment plan of the European Institute for Gender Equality. 

–  Modifications to the establishment plan of the European Economic and Social Committee. 

The  net  effect  of  the  modifications  to  expenditure  is  an  increase  of  EUR 225,7 million  in 
commitment appropriations, and an increase of EUR 159,6 million in payments. There will be 
no call for additional revenue. 

2. 

MICROSOFT 

On  24  March  2004,  the  Commission  addressed  a  decision  to  the  Microsoft  Corporation, 
relating  to  a  proceeding  under  Article  82  of  the  EC  Treaty  (Decision  C(2004)  900).  In  the 
Decision, the Commission found that Microsoft had infringed Article 82 of the EC Treaty by 
engaging  in  acts  that  constituted  various  abuses  of  a  dominant  position.  A  fine  of 
EUR 497,2 million  was  imposed  on  the  Microsoft  Corporation.  The  Commission  also 
imposed  a  number  of  measures,  aimed  at  bringing  to  an  end,  in  an  effective  manner,  the 
infringement in question. 

On  10  November  2005,  the  Commission  warned  Microsoft,  pursuant  to  Article  24(1)  of 
Regulation 1/20033, that should Microsoft not comply with these obligations by 15 December 
2005, it would face a daily penalty payment of up to EUR 2 million. The definitive amount of 
the  periodic  penalty  payment  imposed  on  the  Microsoft  Corporation  for  failure  to  comply 

3 

Council Regulation (EC) No 1/2003 of 16 December 2002 on the implementation of the rules on competition 
laid down in Articles 81 and 82 of the Treaty, OJ L1, 4.1.2003, p.1. 

EN 

4 

   EN 

 
                                                      
with its obligation was fixed at EUR 280,5 million by Article 2 of Commission Decision of 12 
July 2006. 

The fine imposed on 24 March 2004 and the daily penalty definitely imposed on 12 July 2006 
became  final  following  the  final  judgement  of  the  Court  of  First  Instance  of  10  November 
2007 in the case T-201/04, and the order for removal from the register of 6 December 2007 in 
the case T-271/06). In 2008, the Commission has received the principal of EUR 777,7 million 
(EUR 497,2 million and EUR 280,5 million), as well as banking interest of EUR 71,5 million, 
accumulating since the provisional deposit, giving a total amount of EUR 849,2 million. 

3. 

SALARIES ADJUSTMENT 

The Preliminary Draft Budget (PDB) for 2008 presented by the Institutions was based upon 
an estimate of a 2,2% increase for pay and pensions. 

On  17  December  2007  the  Council,  acting  on  a  Commission  proposal,  adopted  Regulation 
1558/20074,  increasing  with  effect  from  1  July  2007  the  remuneration  and  pensions  of 
officials and other servants of the European Communities by 1%. This is the increase that has 
been applied to pay and pensions in 2007.  

However,  after  the  submission  of  the  Commission  proposal  to  the  Council,  Italy 
communicated new data concerning the increase in the remuneration of its civil servants with 
effect  from  1  February  2007.  Therefore  the  Commission  has  presented  a  revised  proposal 
increasing pay and pensions by a further 0,4% with effect from 1 July 2007. 

The consequence for 2008 is that appropriations for pay and pensions can be reduced by about 
0,6%. This is the result of two technical adjustments: 

–  the reduction of pay and pensions expenditure by about 0,8% due to the difference between 

the 2,2% estimated increase and the 1,4% actual increase.  

–  the increase of pay and pensions expenditure by about 0,2% due to the one off backdated 

payment of 0,4% for the last 6 months of 2007. 

In absolute terms the net effect on heading 5 expenditure for Commission staff salaries, and 
for pensions for all institutions, is a saving of EUR 18,9 million. It is proposed to decrease the 
budgetary appropriations for the pensions budget line by EUR 2,3 million. 

The remainder of the savings will be used to cover previously unforeseen needs linked to the 
Microsoft judgement of 17 September 2007 in Case T-201/04, and a transfer request is being 
submitted separately. 

The Court of First Instance annulled part of Article 7 of the Decision, insofar as it provided 
that all the costs associated with the Monitoring Trustee be borne by Microsoft.  

The  Trustee  was  appointed  in  2005  following  the  procedure  set  out  in  the  Commission's 
"Trustee Decision". Microsoft has funded the Trustee's operation, including his remuneration, 

4 

Council Regulation (EC, Euratom) No 1558/2007 of 17 December 2007 adjusting with effect from 1 July the 
remuneration and pensions of officials and other servants of the European Communities and the correction 
coefficients applied thereto, OJ L340, 22.12.2007, p.1. 

EN 

5 

   EN 

 
                                                      
since  October  2005.  Based  on  the  cash  disbursements  of  Microsoft,  the  cost  borne  by  the 
Trustee  to  implement  the  Commission  Decision  up  to  17  September  2007  is  estimated  at 
EUR 14,2 million. 

The  Monitoring  Mechanism's  task  is  to  support  the  Commission  in  monitoring  Microsoft's 
compliance with the Decision. It delivers technical reports and expert opinions on the state of 
the interoperability information and practical testing of the information's correctness. It also 
acts  as  a  mediator  between  licensees  and  Microsoft  in  all  matters  regarding  the  licensing 
conditions and the licensed materials. Its work is very important for the effective enforcement 
of  the  Decision  and  in  the  pending  procedure  under  Article  24(2)  of  Regulation  1/2003 
concerning Microsoft's failure to comply with the Decision. A continuation of the Monitoring 
Mechanism's work must therefore be ensured. An additional EUR 2,4 million will be needed 
in 2008 to cover the costs of ensuring the necessary continuity of the Monitoring Mechanism's 
services.  Thus,  the  combined  needs  for  the  Monitoring  Trustee  in  2008  amount  to 
EUR 16,6 million. 

4. 

BLUE TONGUE VACCINATION CAMPAIGN 

In  2007  outbreaks  of  bluetongue  have  occurred  in  several  Member  States,  and  more 
particularly  bluetongue  serotype  8  in  Belgium,  the  Czech  Republic,  Denmark,  Germany, 
Spain, France, Luxembourg, the Netherlands and bluetongue serotype 1 in France, Spain and 
Portugal. Bluetongue is a vector-borne disease, for which slaughter of animals of susceptible 
species  is  not  in  general  an  appropriate  measure  except  in  the  case  of  animals  clinically 
affected with bluetongue.  The emergence  of  this disease may represent  a  serious risk to  the 
Community's livestock population 

Vaccination is the most efficient veterinary measure that may be used to fight bluetongue, and 
a  mass  emergency  vaccination  campaign  is  the  best  option  to  achieve  the  objectives  of 
reducing  clinical  disease  and  losses,  containing  the  spread  of  the  disease,  protecting  free 
territories in the Member States and facilitating safe trade in live animals.  

In  order  to  prevent  the  spread  of  the  disease  as  rapidly  as  possible,  the  Community  should 
contribute financially to the eligible expenditure incurred by the Member States concerned in 
the  context  of  the  emergency  measures  taken  to  combat  the  disease,  as  provided  for  in 
Decision 90/424/EEC5. According to this Decision, the contribution must be 100% of the cost 
of supply of the vaccine and 50% of the costs incurred in carrying out the vaccination 

The  Member  States  have  presented  their  plans  for  emergency  vaccination  indicating  the 
approximate number of vaccine doses to be used in 2007 and 2008 and the estimated costs of 
carrying  out  those  vaccinations.  The  Commission  has  assessed  these  plans  from  both  the 
veterinary and the financial point of view and the plans were found to comply with relevant 
Community veterinary legislation. 

The  total  cost  of  the  above  mentioned  vaccination  action  is  estimated  at  EUR 130 million. 
Payment  requirements  for  2008  amount  to  EUR 63,95 million.  This  amount  was,  having 
regard to the timing of the emergency situation, not taken into account when the 2008 budget 
was prepared and decided upon. At this time of the year, no appropriations are foreseen to be 
available within the 2008 FEAGA budget. Therefore, the Commission requests to increase the 

5 

OJ L224, 18.8.1990, p.19. 

EN 

6 

   EN 

 
                                                      
level of appropriations in budget item "emergency fund for veterinary complaints and other 
animal contaminations which are a risk for public health" (17 04 03 01) by EUR 130 million 
in  commitments  and  EUR 63,95 million  in  payments.  The  increased  budget  remains  within 
the ceiling of heading 2. 

5. 

JOINT TECHNOLOGY INITIATIVES 

In  accordance  with  Article  166  of  the  EC  Treaty,  the  European  Parliament  and  the  Council 
adopted  Decision  2006/1982/EC  of  18  December  2006  concerning  the  Seventh  Framework 
Programme  of  the  European  Community  for  research,  technological  development  and 
the  Framework  Programme6.  The  Council 
demonstration  activities,  (2007-2013)  - 
subsequently  adopted  Decision  2006/971/EC  of  19  December  2006  concerning  the  specific 
programme ‘Cooperation’ implementing the Seventh Framework Programme of the European 
Community – the Specific Programmes7. 

Across  all  the  themes  determined  for  the  Community  action,  and  between  the  existing 
different instruments, the Seventh Research Framework Programme can be implemented, in a 
very limited number of cases, through Joint Technology Initiatives (JTIs). 

The  proposed  draft  amending  budget  follows  the  adoption  of  four  Council  regulations8 
establishing the  corresponding  public  private partnerships on the basis  of Article 171 of the 
Treaty and Article 185 of the Financial Regulation: 

–  Council  Regulation  (EC)  No  73/2008  of  20 December  2007  setting  up  the  Joint 
Undertaking  for  the  implementation  of  the  Joint  Technology  Initiative  on  Innovative 
Medicines (IMI); 

–  Council Regulation (EC) No 71/2008 of 20 December 2007 setting up the Clean Sky Joint 

Undertaking; 

–  Council  Regulation  (EC)  No  72/2008  of  20 December  2007  setting  up  the  ENIAC 

(European Technology Platform on Nanoelectronics) Joint Undertaking; 

–  Council  Regulation  (EC)  No  74/2008  of  20 December  2007  on  the  establishment  of  the 
‘ARTEMIS  Joint  Undertaking’  to  implement  a  Joint  Technology  Initiative  in  Embedded 
Computing Systems. 

All  Joint  Undertakings  are  bodies  set  up  by  the  Communities,  and  discharge  for  the 
implementation  of  their  budgets  should  be  given  by  the  European  Parliament,  on  a 
recommendation from the Council, taking however into account the particular characteristics 
resulting  from  the  nature  of  JTIs  as  public-private  partnerships  and  in  particular  from  the 
private sector contribution to the budget. 

This amending budget concerns the creation of the corresponding new items for the subsidies 
to the four Joint Undertakings. No additional appropriations are requested in the framework of 
the creation of these new  budget lines: the appropriations  will be deducted from the  budget 

6 
7 
8 

OJ L412, 30.12.2006, p. 1. 
OJ L400, 30.12.2006, p.86 
OJ L30, 04.02.2008, p.1. 

EN 

7 

   EN 

 
                                                      
lines  corresponding  to  the  Seventh  Framework  Programme  priorities  of  the  corresponding 
policy areas. The new items to be created are the following: 

08 02 02 
(IMI) 

Cooperation  –  Health  –  Innovative  Medicines  Initiative  Joint  Undertaking 

08 02 03 
Initiative Joint Undertaking (IMI) 

Cooperation  –  Health  –  Support  expenditure  for  Innovative  Medicines 

08 07 02 

Cooperation – Transport – Clean Sky Joint Undertaking 

08 07 03 
Undertaking 

Cooperation  –  Transport  –  Support  expenditure  for  Clean  Sky  Joint 

09 04 01 02  Cooperation – Information and communication technologies – ARTEMIS Joint 
Undertaking  

09 04 01 03  Cooperation  –  Information  and  communication  technologies  –  Support 
expenditure for ARTEMIS Joint Undertaking 

09 04 01 04  Cooperation  –  Information  and  communication  technologies  –  ENIAC  Joint 
Undertaking  

09 04 01 05  Cooperation  –  Information  and  communication  technologies  –  Support 
expenditure for ENIAC Joint Undertaking  

For 2008, it is proposed to allocate the following amounts, as already set out in the legislative 
financial statements annexed to the corresponding legislative proposals: 

–  IMI:  EUR 125 000 000  in  commitment  appropriations  and  EUR 125 000 000  in  payment 

appropriations; 

–  Clean  Sky:  EUR 47 000 000  in  commitment  appropriations  and  EUR 40 250  000  in 

payment appropriations; 

–  ARTEMIS:  EUR 42 500 000  in  commitment  appropriations  and  EUR 13 950 000  in 

payment appropriations; 

–  ENIAC: EUR 43 000 000 in commitment appropriations and EUR 15 350 000 in payment 

appropriations. 

The following table summarises the appropriations to be allocated to the new items: 

New Items  

Description 

08 02 02 

08 02 03 

08 07 02 

Health 

Cooperation 
– 
– 
Innovative  Medicines  Initiative 
Joint Undertaking (IMI) 
Cooperation  –  Health  –  Support 
Innovative 
for 
expenditure 
Medicines 
Joint 
Initiative 
Undertaking (IMI) 
Cooperation  –  Transport  –  Clean 
Sky Joint Undertaking  

Commitments Appropriations 
(EUR million) 

Payments Appropriations 
(EUR million) 

122,700 

122,700 

2,300 

2,300 

45,000 

38,250 

EN 

8 

   EN 

 
08 07 03 

09 04 01 02 

09 04 01 03 

09 04 01 04 

09 04 01 05 

–  Transport 

Cooperation 
– 
Support  expenditure  for  Clean 
Sky Joint Undertaking  
Cooperation  –  Information  and 
communication 
technologies  – 
ARTEMIS Joint Undertaking 
Cooperation  –  Information  and 
technologies  – 
communication 
Support 
for 
ARTEMIS Joint Undertaking 
Cooperation  –  Information  and 
communication 
technologies  – 
ENIAC Joint Undertaking 
Cooperation  –  Information  and 
technologies  – 
communication 
Support  expenditure  for  ENIAC 
Joint Undertaking 

expenditure 

2,000 

41,000 

1,500 

41,500 

1,500 

2,000 

12,450 

1,500 

13,850 

1,500 

The appropriations will be deducted from the following budget lines: 

–  For the IMI Joint Undertaking: 08 02 01 Cooperation – Health; 

–  For  the  Clean  Sky  Joint  Undertaking:  08 07 01  Cooperation  –  Transport  (including 

Aeronautics);  

–  For  the  ARTEMIS  and  ENIAC  Joint  Undertakings:  09 04 01  Cooperation  –  Information 
and  communication  technologies.  In  order  to  keep  the  current  budgetary  structure 
belonging  to  a  single  priority  of  the  Seventh  Framework  Programme,  it  is  proposed  to 
transform this item into a new item 09 04 01 01. 

Taking  into  consideration  the  envisaged  contribution  to  the  Joint  Undertakings,  the  total 
amount on the budget lines corresponding to the related priorities will be the following: 

Line  

Description 

Commitments Appropriations 
(EUR Million) 

Payments Appropriations 
(EUR Million) 

08 02 01 
08 07 01 

09 04 01 01 

Cooperation - Health 
Cooperation - Transport (including 
Aeronautics)  
Support  to  research  cooperation  in 
information  and 
the  area  of 
communication technologies (ICTs 
– Cooperation) 

570,341 
301,922 

974,930 

303,286 
156,652 

700,700 

The Staff Regulations and the rules adopted jointly by the institutions of the Communities for 
the purpose of applying them shall apply to the staff of Joint Undertakings and their Executive 
Directors. Full details of the establishment plan of each Joint Undertaking are set out in the 
budgetary annex. 

6. 

MOBILISATION OF THE EU SOLIDARITY FUND 

In  August  2007  a  fairly  extensive  part  of  Greece  was  affected  by  forest  fires.  On  18 
September 2007 a large part of Slovenia was affected by heavy rain and a storm, leading to 
severe  flooding  and  landslides.  Within  the  ten  week  deadline  set  by  Article  4  of  Council 

EN 

9 

   EN 

 
Regulation  (EC)  No  2012/20029,  the  Greek  and  Slovenian  authorities  applied  for  financial 
assistance from the EU Solidarity Fund. 

The  Commission  services  have  carried  out  a  thorough  examination  of  the  applications  in 
accordance with Council Regulation (EC) No 2012/2002, and in particular with Articles 2, 3 
and 4 thereof.  

The most important elements of the assessment are summarised below.  

6.1. 

Greece: Forest Fires August 2007 

The application was presented to the Commission on 30 October 2007, within the deadline of 
10  weeks  after  the  first  damage  was  recorded  on  23  August  2007.  Following  a  request  for 
further  information  by  letter  of  20  December  2007,  the  Greek  authorities  completed  the 
application on 24 January 2008. 

The  disaster  is  natural  in  origin.  The  Greek  authorities  estimated  the  total  direct  damage  at 
EUR 2 118,3 million. As this amount exceeds the threshold of EUR 1 066,5 million (i.e. 0,6% 
of GNI) the disaster qualifies as a “major natural disaster” and thus falls within the main field 
of  application  of  Regulation  (EC)  No  2012/2002.  Total  direct  damage  is  the  basis  for  the 
calculation of the amount of financial assistance. This financial assistance may only be used 
for essential emergency operations as defined in Article 3 of the Regulation. 

The Greek authorities indicated that an extensive part of the country was affected by the fires, 
which  were  most  intense  and  most  widespread  in  the  regions  of  Western  Greece,  the 
Peloponnese, Continental  Greece  and  Attica.  The  disaster  caused  major  damage  to  different 
sectors of the economy, in particular to agriculture, and destroyed infrastructure in the field of 
transport, telecommunications, energy distribution, water and waste water and natural disaster 
prevention.  The  disaster  also  caused  important  damage  to  the  natural  environment,  cultural 
monuments, schools, hospitals and fire-fighting services. Substantive costs have been incurred 
for providing temporary accommodation and funding rescue services to meet the immediate 
needs  of  the  population  concerned.  Sixty-five  people  died  in  the  Peloponnese,  in  Western 
Greece and in Evvoia as a result of the fires. 

The cost of essential emergency operations eligible under Article 3(2) of Regulation (EC) No 
2012/2002 has been estimated by the Greek authorities at EUR 1 007,43 million and has been 
broken  down  by  type  of  operation.  The  main  bulk  of  operations  concern  the  immediate 
restoration  to  working  order  of  infrastructure,  in  particular  in  the  field  of  transport,  the 
funding of rescue services, the immediate securing of preventive infrastructures and cleaning-
up  operations  in  the  disaster-stricken  area.  From  the  information  provided  by  the  Greek 
authorities, it is evident that the real cost of eligible operations far exceeds the amount of any 
possible grant from the Solidarity Fund. The types of operation to be financed from the Fund 
will be clearly defined in the Implementation Agreement. 

The Greek authorities stated that the damages will not be financed by any other Community 
sources.  The  Greek  authorities  also  declared  that  the  eligible  damage  is  not  covered  by 
insurance. 

9 

Council  Regulation  (EC)  N°  2012/2002  of  11  November  2002  establishing  the  European  Union  Solidarity 
Fund (OJ L 311, 14.11.2002). 

EN 

10 

   EN 

 
                                                      
For the reasons set out above, it is proposed that the application made by Greece relating to 
the forest fires starting in August 2007 is accepted as a “major disaster” and that the Solidarity 
Fund should be used. 

6.2. 

Slovenia: Floods September 2007 

The application was presented to the Commission on 19 November 2007, within the deadline 
of 10 weeks after the first damage was recorded on 18 September 2007. 

The disaster is of natural origin. The Slovenian authorities estimated the total direct damage at 
EUR 233,4 million. As this amount exceeds the threshold of EUR 164,3 million (i.e. 0,6% of 
GNI) the disaster qualifies as a “major natural disaster” and falls thus within the main field of 
application  of  Regulation  (EC)  No  2012/2002.  Total  direct  damage  is  the  basis  for  the 
calculation of the amount of financial assistance. The financial assistance may only be used 
for essential emergency operations as defined in Article 3 of the Regulation. 

According  to  the  Slovenian  authorities,  a  greater  part  of  the  country  was  affected  on  18 
September  2007  by  heavy  rains  and  a  storm,  leading  to  floods,  landslides  and  mud/debris 
flows. The disaster caused significant damage to infrastructure (transport, electricity, water). 
More  than  350 km  of  national roads  and  more  than  1 600 km  of  municipal  and  forest  roads 
were  damaged  as  well  as  more  than  17 km  of  water  infrastructure,  more  than  10 km  of 
electricity  grid,  48  water  reservoirs  and  147  bridges.  In  addition,  the  disaster  caused 
significant  damage  to  public  and  private  buildings  (more  than  4 320  homes  and  61  public 
institutions  flooded),  business  (192  companies  flooded),  agriculture  and  monuments  of 
cultural heritage. The application contains a break-down of damages. 

The cost of essential emergency operations eligible under Article 3(2) of Regulation (EC) No 
2012/2002 has been estimated by the Slovenian authorities at EUR 158,2 million and has been 
broken  down  by  type  of  operation.  The  largest  share  of  operations  concerns  cleaning  up 
operations in the disaster stricken area as well as the immediate restoration to working order 
of water and transport infrastructure. The types of operation effectively to be financed from 
the Fund will be clearly defined in the Implementation Agreement. 

The  Slovenian  authorities  indicated  that  the  damages  will  not  be  financed  by  any  other 
Community  sources.  The  Slovenian  authorities  declared  that  the  eligible  damage  is  not 
covered by insurance. 

In conclusion, for the reasons set out above, it is proposed to accept the application made by 
Slovenia relating to the flooding in September 2007 as a “major disaster” and to propose the 
mobilisation of the Solidarity Fund.  

6.3. 

Financing 

The  total  annual  budget  available  for  the  Solidarity  Fund  is  EUR 1 billion.  In  2008,  it  has 
already  been  proposed  to  mobilise  EUR 162 387 985  for  an  earlier  application,  leaving 
EUR 837 612 015 available. 

As solidarity was the central justification for the creation of the Fund, the Commission takes 
the  view  that  aid  from  the  Fund  should  be  progressive.  That  means  that,  according  to 
established practice, the portion of the damage exceeding the threshold (0,6 % of the GNI or 
EUR 3 billion in 2002 prices, whichever is the lower amount) should give rise to higher aid 
intensity  than  damage  up  to  the  threshold.  The  rate  applied  in  the  past  for  defining  the 

EN 

11 

   EN 

 
allocations  for  major  disasters  is  2,5 %  of  total  direct  damage  under  the  threshold  and  6 % 
above. It is proposed to apply the same percentages in this case. 

The  Commission’s  proposed  allocation  under  the  Fund  is  based  on  the  information  made 
available by the applicants, and is as follows: 

Direct damage 

Threshold 

Amount based 
on 2,5% 

Amount based on 
6% 

(EUR) 
Total amount of 
aid proposed 

2 118 273 411 

1 066 497 000 

26 662 425 

63 106 584 

89 769 009 

233 395 389 

164 272 000 

4 106 800 

4 147 403 

8 254 203 

98 023 212

Greece forest 
fires  
Slovenia 
flooding 
Total 

This amount of compensation will leave at least 25 % of the European Union Solidarity Fund 
available  for  allocation  during  the  last  quarter  of  the  year,  as  required  by  Article  4(2)  of 
Regulation (EC) 2012/2002. 

7. 

MODIFICATION OF THE ESTABLISHMENT PLAN OF THE EUROPEAN INSTITUTE FOR 
GENDER EQUALITY 

The  establishment  plan  for  the  European  Institute  for  Gender  Equality  foresees  one  post  at 
grade AD 13. However, the 2007 selection procedure at grade AD 13 for the post of Director 
of the European Institute for Gender Equality has not identified suitable candidates with the 
required competencies.  

It is therefore proposed to modify the establishment plan and upgrade the post from grade AD 
13 to grade AD 14, in order to attract high quality candidates for the  post  of Director.  This 
would also align the grade with that of directors of other decentralised agencies.  

The proposed readjustment of the establishment plan will have no impact on the level of the 
budgetary appropriations. 

8. 

MODIFICATION OF THE ESTABLISHMENT PLAN OF THE EUROPEAN ECONOMIC AND 
SOCIAL COMMITTEE 

A number of adjustments are proposed to the establishment plan of the European Economic 
and Social Committee (EESC). This are detailed below. 

Temporary posts 

1. Conversion of the AD16-HC (hors classe) permanent post to AD16-HC temporary post 

The  EESC's  Bureau  has  decided  to  transform  the  permanent  post  AD16-unclassified  into  a 
temporary  post  AD16-unclassified,  in  order  to  proceed  with  the  recruitment  of  a  temporary 
agent to replace the current Secretary General, who will depart as of 30 September 2008. 

This status has been deemed more appropriate to conform to article 2 a) of the Conditions of 
Employment  of  other  Servants  of  the  European  Communities,  when  granting  the  Secretary 
General a five year temporary contract. 

EN 

12 

   EN 

 
 
 
 
 
 
 
 
 
2. Conversion of two permanent posts to temporary posts 

As  part  of  the  redeployment  of  a  number  of posts  from  the  translation  units  to  other  EESC 
services,  two  posts  have  been  assigned  to  the  President's  private  office  and  the  Group  II 
secretariat  respectively.  Since  the  President's  private  office  and  the  Group  secretariats  are 
staffed by temporary agents employed under Article 2 c) of the Conditions of Employment of 
other  Servants  of  the  European  Communities,  and  the  two  AST5  posts  which  have  been 
assigned are permanent, they should be converted to temporary posts. 

3. Conversion of two AD posts to AST and of two AST posts to AD  

Both the President's private office and the Group III secretariat already have assistants who fit 
the  profile  for  the  new  administrator  posts.  Since  in  both  cases,  the  grade  of  the  posts 
concerned (AD5) is too low for the two assistants (they are AST8), and since the appropriate 
grade is available (in the two posts they are currently occupying), it is proposed to adjust the 
situation  by  changing  the  function  group  of  two  temporary  AD5  posts  to  AST5,  one 
temporary AST8 to AD8 and one temporary AST10 to AD10. 

4. Upgrading of one AD post and downgrading of one AD post  

In order to upgrade one position within the President's private office, it is requested that one 
AD5 post be upgraded to AD6. 

This  upgrading  will  be  paired  with  the  downgrading  of  another  post,  also  in  the  President's 
private office where it is requested that one AD10 post be downgraded to AD9. 

Permanent post  

Conversion of an AST post to AD  

For  reasons  relating  to  the  organisation  of  the  IT  unit's  work,  one  AST10  post  needs  to  be 
converted  to  AD10  so  as  to  upgrade  the  position  of  Head  of  Unit  of  the  Data  Centre.  In 
addition  to  performing  complex  tasks,  the  post  holder  is  responsible  for  supervising  three 
colleagues. Moreover, this is a sensitive sector subject to regular inspections. 

Summary of the requests 

Operation 
AD16-HC to AD16-HC T 
AST5 to AST5-T 
AD5-T to AST5-T 
AST10-T to AD10-T 
AST8-T to AD8-T 
AD5-T to AD6-T 
AD10-T to AD9-T 
AST10 to AD10 

Number
1 
2 
2 
1 
1 
1 
1 
1 

In budget terms, the operation is neutral, since the only request for upgrading is offset by the 
downgrading of a higher grade. 

The total number of authorised posts will remain unchanged. 

EN 

13 

   EN 

 
Financial framework 
Heading/subheading 

2008 Financial framework10 

Budget 2008 (incl. PDAB 1 and 2/2008) 

PDAB 3/2008 

Budget 2008 + PDAB 1, 2 and 3/2008 

CA 

PA 

CA 

PA 

CA 

PA 

CA 

PA 

SUMMARY TABLE BY HEADING OF THE FINANCIAL FRAMEWORK 

and 

10 386 000 000

11 086 000 000

9 772 639 600

47 255 948 720
58 341 948 720

-188 948 720  

40 551 565 026
50 324 204 626

11 086 000 000

9 772 639 600 

47 255 948 720
58 341 948 720

-188 948 720  

40 551 565 026 
50 324 204 626 

1. SUSTAINABLE GROWTH 
1a.  Competitiveness 
employment 
1b. Cohesion for growth and employment 

growth 

for 

Total 
Margin11 
AND 
NATURAL 

PRESERVATION 

2. 
MANAGEMENT 
RESOURCES 
Of  which  market  related  expenditure  and 
direct payments 

OF 

Total 
Margin 
FREEDOM, 

CITIZENSHIP, 

3. 
SECURITY AND JUSTICE 
3a. Freedom, Security and Justice 
3b. Citizenship 

4. EU AS A GLOBAL PARTNER13 

Total 
Margin12   

5. ADMINISTRATION14 

6. COMPENSATION 

Margin 

Margin 

Margin 
TOTAL 

47 267 000 000
57 653 000 000

46 217 000 000

59 193 000 000

747 000 000
615 000 000
1 362 000 000

7 002 000 000

7 380 000 000

207 000 000

132 797 000 000

129 681 000 000

40 876 490 000

40 825 600 500

130 000 000

63 950 000

41 006 490 000

40 889 550 500 

55 434 715 538

3 758 284 462  

728 034 000
777 230 985
1 505 264 985

19 123 000  

7 311 218 000
-70 000 000
7 283 860 235
173 139 765
206 636 292
363 708
130 083 643 770
3 691 962 215

53 177 320 053

130 000 000

63 950 000

55 564 715 538

3 628 284 462  

53 241 270 053 

533 196 000
870 640 991
1 403 836 991

8 112 728 400

98 023 212
98 023 212

98 023 212
98 023 212

7 284 420 235

-2 334 780

-2 334 780

206 636 292

120 509 146 597
9 650 459 388

225 688 432

159 638 432

728 034 000
875 254 197
1 603 288 000

19 123 000  

7 311 218 000
-70 000 000
7 281 525 455
175 474 545
206 636 292
363 708
130 309 332 202
3 564 296 995

533 196 000 
968 664 203 
1 501 860 203 

8 112 728 400 

7 282 085 455 

206 636 292 

120 668 785 029 
9 588 844 168 

10 

11 
12 
13 
14 

EN 

The Commission has presented a proposal for a decision of the European Parliament and of the Council on the adjustment of the financial framework to take account of implementation, in 
accordance with paragraph 48 of the Interinstitutional Agreement of 17 May 2006. 
The European Globalisation adjustment Fund (EGF) is not included in the calculation of the margin under Heading 1a. The Flexibility Instrument has been mobilised for an amount of EUR 200 million. 
The European Union Solidarity Fund (EUSF) amount is entered over and above the relevant headings as foreseen by the IIA of 17 May 2006 (OJ C 139 of 14.6.2006) 
The 2008 margin for heading 4 does not take into account the appropriations related to the Emergency Aid Reserve. The Flexibility Instrument has been mobilised for an amount of EUR 70 million. 
For calculating the margin under the ceiling for heading 5, account is taken of the footnote (1) of the financial framework 2007-2013 for an amount of EUR 77 million for the staff contributions to the 
pensions scheme. 

14 

EN