Preliminary draft amending budget n° 6 to the general budget 2008 - Statement of expenditure by section - section III - Commission
Date: 2008-07-01
Institutions: Directorate-General for Budget, European Commission
Subjects: EU office or agency, EU programme, European Commission, amending budget, budgetary expenditure, general budget (EU), preliminary draft EC budget

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 1.7.2008 
COM(2008) 429 final 

PRELIMINARY DRAFT AMENDING BUDGET N° 6  
TO THE GENERAL BUDGET 2008 

STATEMENT OF EXPENDITURE BY SECTION 
Section III - Commission 

(presented by the Commission) 

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PRELIMINARY DRAFT AMENDING BUDGET N° 6  
TO THE GENERAL BUDGET 2008 

STATEMENT OF EXPENDITURE BY SECTION 
Section III - Commission 

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) No 1525/20072, and in particular Article 37 
thereof, 

The European Commission hereby presents to the budgetary authority the Preliminary Draft 
Amending Budget No 6 to the 2008 budget. 

1 
2 

OJ L 248, 16.9.2002, p. 1. 
OJ L 343, 27.12.2007, p. 9. 

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TABLE OF CONTENTS 

1. 

2. 

2.1 

2.2 

2.3 

3. 

4. 

5. 

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

Executive Agencies...................................................................................................... 4 

Education, Audiovisual and Culture Executive Agency (EACEA)............................. 4 

Executive Agency for the Public Health Programme (PHEA) .................................... 5 

Trans-European Transport Network Executive Agency (TEN-T EA) ........................ 6 

Fuel Cells and Hydrogen Joint Undertaking (FCH JU) ............................................... 6 

EUROJUST.................................................................................................................. 8 

Competitiveness and Innovation Programme (CIP) .................................................... 9 

SUMMARY TABLE BY HEADING OF THE FINANCIAL FRAMEWORK ..................... 10 

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. 

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1. 

INTRODUCTION 

Preliminary  Draft  Amending  Budget  (PDAB)  No 6  for  the  year  2008  covers  the  following 
elements: 

–  The  necessary  budgetary  adaptations  arising  from  the  extension  of  the  mandate  of  three 
executive agencies: the Education, Audiovisual and Culture Executive Agency (EACEA), 
the Executive Agency for the Public Health Programme (PHEA), and the Trans-European 
Transport Network Executive Agency (TEN-T EA). 

–  The  creation  of  the  necessary  budgetary  structure  to  accommodate  the  Fuel  Cells  and 

Hydrogen Joint Undertaking (FCH JU). 

–  An increase of EUR 2,2 million in commitment appropriations, to cover part of the costs of 

a new building for EUROJUST. 

–  An increase of EUR 3,9 million in commitment appropriations for the Competitiveness and 

Innovation Programme (CIP) – Entrepreneurship and Innovation. 

The  net  effect  of  the  modifications  to  expenditure  is  an  increase  of  EUR 6,1 million  in 
commitment appropriations, with no change in payment appropriations. 

2. 

EXECUTIVE AGENCIES 

On 15 April 2008, the Committee on Executive Agencies (CREA), established by Article 24 
of  Council  Regulation  (EC)  No  58/20033,  approved  the  extension  of  the  mandate  of  three 
executive  agencies  –  the  Education,  Audiovisual  and  Culture  Executive  Agency  (EACEA), 
the  Executive  Agency  for  the  Public  Health  Programme  (PHEA),  and  the  Trans-European 
Transport  Network  Executive  Agency  (TEN-T  EA).  This  was  followed  on  29  May  by  the 
approval of the European Parliament's Committee on Budgets (COBU). 

Following  the  approval  of  the  Committee  for  Executive  Agencies  and  the  European 
Parliament's  Committee  on  Budgets,  the  formal  Commission  decisions  extending  the 
mandates of the agencies will be taken. 

The modifications necessitated by the extension of the three mandates are set out below. 

2.1 

Education, Audiovisual and Culture Executive Agency (EACEA) 

On 14 January 2005, the Commission adopted Decision 2005/56/EC4 setting up the Executive 
Agency for the management of Community action in the fields of education, audiovisual and 
culture (EACEA). 

The mandate of EACEA was extended by Commission Decision 2007/114/EC5 of 8 February 
2007  to  include  management  of  the  new  generation  of  programmes  previously  delegated  to 

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Council Regulation (EC) No 58/2003 of 19 December 2002 laying down the statute for executive agencies to be 
entrusted with certain tasks in the management of Community programmes. OJ L11, 16.1.2003, p1. 
OJ L 24, 27.1.2005, p.35.  
OJ L 49, 17.2.2007, p.21.  

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the Agency (MEDIA 2007, LLL, Culture, Youth in Action, Europe for Citizens); the projects 
in the fields of education, vocational training and youth, governed by the agreements made in 
these  fields  by  the  European  Community  and  the  United  States  of  America  and  Canada;  as 
well  as  other  programme  strands,  in  particular  the  Erasmus  Mundus  External  Cooperation 
Window.  

The  extension  of  the  Agency's  mandate,  which  has  now  been  approved,  relates  to  the 
implementation  of  additional  Erasmus  Mundus  External  Cooperation  Windows  related  to 
Latin America, Asia and Balkans. 

The  additional  tasks  given  to  EACEA  related  to  the  proposed  extension  will  not  lead  to  an 
increase  in  the  subsidy  of  the  Executive  Agency,  as  this  will  be  covered  by  the  existing 
items  19 01 04 30  EACEA  –  Subsidy  for  External  Relations 
appropriations  under 
programmes  and  22 01 04 30  EACEA  –  Subsidy  for  programmes  under  heading  4  in  the 
'Enlargement' policy area. However, an adjustment is required to the establishment plan of the 
Agency,  since  the  reinforcement  for  the  External  Cooperation  Window  foresees  two 
temporary agents of grade AD 56. 

2.2 

Executive Agency for the Public Health Programme (PHEA) 

the  Public  Health  Programme"  and  entrusted 

On  15  December  2004,  the  Commission  adopted  Decision  2004/858/EC7  creating  the 
"Executive  Agency  for 
the 
implementation of the Public Health Programme 2003-2008 until 31 December 2010. At the 
beginning  of  year  2008,  the  Commission  proposed  to  extend  the  mandate  of  the  Agency  in 
order to cover the implementation of the new programme (2008-2013) of Community action 
in  the  field  of  Public  Health,  and  to  entrust  it  with  new  tasks  related  to  other  Community 
programmes and measures currently managed by the Commission. Those new tasks concern 
the  management  of  the  Consumer  Policy  Programme,  and  of  the  Community  food  safety 
training measures. The lifetime of the Agency should be therefore extended from 1 January 
2011 to 31 December 2015, and the official name should be amended to "Executive Agency 
for Health and Consumers", in order to reflect its additional tasks. 

it  with 

According to Article 12 of Council Regulation (EC) No 58/2003, the financing of executive 
agencies  has  to  be  covered  by  the  envelope  of  the  operational  programmes  they  manage. 
However,  as  the  2008  budget  does  not  provide  any  financing  to  the  Executive  Agency  for 
Health and Consumers as concerns the new programmes entrusted to it (Consumers and Food 
Safety Training), the necessary financial resources have to be made available to the Agency. 

Since the Agency will start working on the new programmes only at the beginning of the last 
quarter  of  the  year  2008,  the  contribution  from  the  Consumer  and  Food  Safety  Training 
programmes  should  cover  only  the  last  three  months  of  the  year.  The  total  amount  to  be 
transferred  to  the  Agency  by  internal  transfer  corresponds  to  EUR 340 000  for  the  two 
programmes  combined.  As  regards  the  Consumer  Programme  this  contribution  has  been 
established  at  EUR 226 800,  to  be  made  available  by  an  internal  transfer  from  the 
administrative budget line of the Consumer Programme (17 01 04 03). Concerning the Food 
Safety Training measures, the contribution is fixed at EUR 113 200, to be transferred from the 
corresponding administrative budget line (17 01 04 05) within the same chapter. Therefore, all 

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The full details are set out in the budgetary annex. 
OJ L369, 16.12.2004, p.73. 

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operational appropriations of the programmes will remain unchanged and available to cover 
purely operational actions. 

The establishment plan of the Agency entered in the 2008 Budget also needs to be amended, 
adding three temporary agent posts8. 

2.3 

Trans-European Transport Network Executive Agency (TEN-T EA) 

Commission  Decision  2007/60/EC  of  26  October  20069  established  an  executive  agency  to 
assure the technical and financial management of transport projects co-financed on the basis 
of the legal base in place at the time, i.e. the TEN-T Programme 2000-2006.  

The  current  modification  of  the  mandate  was  already  foreseen  in  2006  and  it  allows  the 
Agency to take responsibility for the management of transport projects supported by the new 
TEN-T  Programme  2007-2013.  In  addition,  the  new  programme  adds  new  financial 
instruments  (e.g.  the  loan  guarantee  instrument,  Public  Private  Partnerships  (PPPs))  and 
emphasises  the  importance  of  promotion  and  communication,  which  require  significantly 
more human resources for its implementation. 

The initial hypothesis on the repartition of staff is based on 60% of contractual staff and 40% 
of temporary agents. However, in order to increase the savings, the Commission has increased 
the percentage of contractual staff to 68%, which leads to fewer temporary posts needed than 
initially  forecasted.  Therefore  the  Commission  proposes  to  reduce  the  establishment  plan 
from 40 to 32 temporary posts10. 

As  indicated  in  the  financial  statement  accompanying  the  proposed  modification  of  the 
mandate,  this  new  staff  repartition  implies  a  lower  budget  amounting  to  EUR 8 894 600. 
Since  the  approved  budget  for  the  Agency  in  2008  is  EUR 10 212 600,  the  Commission 
proposes  to  transfer  the  difference  of  EUR 1 318 000  to  the  budget  item  06 01 04 04 
"Financial support for projects of common interest in the trans-European transport network — 
Expenditure on administrative management" by means of an internal transfer. It will be used 
primarily to finance studies related to the support of the green paper on the future of the TEN-
T policy, to the implementation of the TEN-T Guidelines (2006-2007) and to the traffic flows 
on the South East Europe Core Regional Transport Network - Horizon 2030.  

3. 

FUEL CELLS AND HYDROGEN JOINT UNDERTAKING (FCH JU) 

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  7th  Framework 
Programme  of  the  European  Community  for  research,  technological  development  and 
the  Framework  Programme11.  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 Programmes12. 

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The full details are set out in the budgetary annex. 
OJ L32, 6.2.2007, p.88. 
The full details are set out in the budgetary annex. 
OJ L412, 30.12.2006, p. 1. 
OJ L400, 30.12.2006, p.86 

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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).  

Amending  Budget  3/200813  created  the  necessary  budgetary  structure  to  accommodate  the 
first  four  of  these  Joint  Undertakings14.  The  present  Preliminary  Draft  Amending  Budget 
(PDAB) No 6 includes the creation of the necessary budgetary structure to accommodate the 
Joint Technology Initiative Fuel Cells and Hydrogen Joint Undertaking (FCH JU), following 
the adoption by the Council of Regulation (EC) 521/200815 on 30 May 2008. 

The  Council  Regulation  establishing  the  corresponding  public  private  partnerships  on  the 
basis  of  Article  171  of  the  Treaty  and  Article  185  of  the  Financial  Regulation,  has  been 
established  in  line  with  the  previous  JTIs  already  adopted,  including  discharge  for  the 
implementation  of 
the  European  Parliament,  on  a 
to  be  given  by 
their  budgets 
recommendation from the Council. 

Therefore, this amending budget concerns the creation of the corresponding new items for the 
subsidies to the FCH Joint Undertaking, as well as the creation of the establishment plan16.  

No  additional  appropriations  are  requested  in  the  framework  of  the  creation  of  these  new 
budget lines; the appropriations will be deducted from the budget lines corresponding to the 
7th  Framework  Programme  priorities  of  the  corresponding  policy  area  participating  to  this 
Joint Technology Initiative.  

Four priorities of the specific "Cooperation" programme implementing the 7th EC Research 
Framework Programme will contribute to the funding of the FCH JU: 

–  Energy 

–  Transport 

–  Nanosciences, nanotechnologies, materials and new production technologies 

–  Environment 

For 2008 only the Energy priority will contribute to the FCH financing. 

This  situation  differs  from  the  previous  Joint  Undertakings  where  only  a  single  thematic 
priority contributed and consequently a single budget line was concerned. 

Taking  into  account  the  start  up  phase  of  the  Joint  Undertaking,  for  2008  the  Commission 
proposes  to  allocate  EUR 30 000 000  in  commitment  appropriations  and  EUR 1 900 000  in 
payment  appropriations  on  the  new  items  to  be  created,  with  corresponding  amounts  to  be 
deducted from the existing budget line 08 05 01. 

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As approved on 5.6.2008. 
Six  JTIs  are  foreseen  in  the  specific  "Cooperation"  programme  implementing  the  7th  EC  Research  Framework 
Programme,  (Artemis,  on  embedded  computer  systems;  IMI,  the  Innovative  Medicines  Initiative;  Clean  sky,  on 
aeronautics and air transport; ENIAC, on nano-electronics technologies, FCH on Fuel Cells and Hydrogen). One 
more is in the pipeline: Global monitoring for Environment and Security, “GMES”.  
OJ L153, 12.6.2008, p.20. 
The Staff Regulation and the rules adopted jointly by the institutions of the Communities for the purpose apply to 
the staff of Joint Undertakings and their Executive Directors. Full details of the establishment plan of FCH JU are 
set out in the budgetary annex. 

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

New Items  

Description 

Commitments Appropriations 

Payments Appropriations 

08 05 02 

08 01 04 41 

Cooperation — Energy — Fuels 
Cells 
and  Hydrogen 
Undertaking (FCH) 

Joint 

(EUR million) 

(EUR million) 

28,100 

0 

Support  expenditure 
Cells 
Undertaking (FCH) 

and  Hydrogen 

for  Fuel 
Joint 

1,900 

1,900 

Taking  into  consideration  the  envisaged  contribution  to  the  Joint  Undertaking,  the  total 
amount  on  the  budget  line  corresponding  to  the  related  Energy  priority  will  be  reduced  as 
shown in the following table: 

Items  

Description 

Commitments Appropriations 

Payments Appropriations 

(EUR million) 

(EUR million) 

08 05 01 

Cooperation — Energy  

99,680 

62,598 

4. 

EUROJUST 

In recent years the number of EUROJUST personnel has risen considerably. This includes an 
increase  in  the  staff  of  the  so-called  "national  members"  representing  the  Member  States  in 
the  EUROJUST  College;  as  well  as  the  statutory  agents,  which  have  increased  from  76 
temporary  agents  in  2004  to  175  in  2008.  At  present  staff  are  accommodated  between  the 
"ARC"  building  in  the  Hague  (194  offices  occupied  by  229  people),  and  temporary 
accommodation  in  the  "Equinox"  building  (27  offices).  It  is  estimated  that  by  2014 
EUROJUST  will  require  320-325  offices,  which  is  compatible  with  the  current  financial 
programming.  It  is  foreseen  that  the  host  Member  State  will  make  suitable  accommodation 
available by 2012. However, in the meantime a temporary solution must be found. 

The  host  Member  State  has  proposed  a  new  building  at  "Haagse  Veste  1"  (HV1)  for  the 
period 2008-2012, which EUROJUST would share with the International Criminal Court. The 
160 offices available here would be able to accommodate the staff of the "Equinox" building, 
overflow  from  the  "ARC"  building,  as  well  as  any  new  staff.  The  move  is  foreseen  for 
September 2008. 

In  this  context,  EUROJUST  has  requested  an  increase  in  its  budget  of  EUR 7 339 398  to 
cover  the  rent  and  maintenance  of  the  new  building  HV1,  to  carry  out  the  necessary 
adaptations to HV1, and to furnish it, and to recruit the necessary security staff (these costs 
will be shared with the International Criminal Court). 

Following  evaluation  of  the  proposal  and  discussions  with  EUROJUST,  the  Commission 
proposes  to  accept  the  request,  with  the  exception  of  the  so-called  "Built-in  package" 
(EUR 2,6 million  for  construction  –  walls,  floors,  doors,  IT  server  facilities).  This  is  the 
subject of negotiations between EUROJUST and the host Member State. 

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Of the remaining EUR 4,7 million, it is proposed that EUR 2,5 million be covered by assigned 
revenue  (EUR 1,8 million  corresponding  to  the  surplus  of  2006,  and  the  rest  from  2007). 
Thus, the final request for the amending budget amounts to EUR 2,24 million. 

Commitment appropriations of EUR 2,24 million will come from the margin under the ceiling 
of Heading 3a (EUR 19 million in 2008). The corresponding payment appropriations will be 
redeployed  from  18 06 06 Criminal  Justice,  for  which  calls  for  proposals  have  resulted  in 
lower results than originally foreseen. 

It is proposed to enter the additional appropriations in the budget as follows: 

18 06 04 01 EUROJUST — Subsidy under titles 1 and 2, EUR 1 940 000 

18 06 04 02 EUROJUST — Subsidy under title 3, EUR 300 000 

5. 

COMPETITIVENESS AND INNOVATION PROGRAMME (CIP) 

The  financial  instruments  under  the  CIP  have  had  a  very  favourable  start.  The  2007  budget 
resources  were  committed  in  December  2007,  and  the  first  projects  were  approved  before 
year-end. Subsequent proposals from the European Investment Fund (EIF) arrived at such a 
speed that it became necessary to start committing the 2008 budget resources several months 
earlier than expected, i.e., in February 2008. 

Regular  discussions  take  place  with  the  EIF  to  ensure  the  most  effective  use  of  available 
resources;  but  it  is  already  clear  that  the  demand  for  the  instrument  exceeds  the  resources 
available in 2008. The fact that so much demand has occurred so early in the year makes it 
difficult  to  postpone  approvals  into  2009,  without  the  risk  of  losing  some  of  the  available 
business unless resources can be increased in 2008. 

Initial forecasts called  for  a  slight  "front-loading" of  expenditure over the first  two  years. It 
was expected that new demand would need to be stimulated by an "Awareness Programme", 
launched  in  2008  as  part  of  the  overall  CIP  package.  In  reality,  the  carry-over  has  proved 
bigger than expected, and new demand is already so strong that the Awareness Programme is 
being scaled-back, to avoid the risk of unfulfilled expectations. 

is 

to 

therefore 

proposed 

It 
line 
01 04 04 Competitiveness  and  Innovation  Framework  Programme  –  Entrepreneurship  and 
Innovation Programme by EUR 3,9 million. These additional resources will be compensated 
by  a  reduction  of  commitment  appropriations  in  the  financial  programming  of  the  line 
01 04 04 in 2011 and 2012. 

appropriations 

commitment 

increase 

for 

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Financial framework 
Heading/subheading 

2008 Financial framework 

Budget 2008 (incl. AB 1-4/2008 and PDAB 
5/2008) 

PDAB 6/2008 

Budget 2008 + AB 1-4/2008 and PDAB 5 and 
6/2008 

CA 

PA 

CA 

PA 

CA 

PA 

CA 

PA 

SUMMARY TABLE BY HEADING OF THE FINANCIAL FRAMEWORK 

and 

10 386 000 000

11 082 100 000

9 768 739 600

3 900 000

0

11 086 000 000

9 768 739 600 

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

growth 

for 

Total 
Margin17 
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 PLAYER19 

5. ADMINISTRATION20 

6. COMPENSATION 

Total 
Margin18   

Margin 

Margin 

Margin 
TOTAL 
Margin   

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

47 255 948 720
58 338 048 720

-185 048 720  

40 551 565 026
50 320 304 626

41 400 082 042

40 889 550 500

55 564 715 538

3 628 284 462  

53 241 270 053

728 034 000
875 254 197
1 603 288 197

19 123 000  

7 311 218 000
-70 000 000
7 279 525 455
177 474 545
206 636 292
363 708
130 303 432 202
3 570 196 995

2 240 000

533 196 000
968 664 203
1 501 860 203

8 112 728 400

7 280 085 455

206 636 292

120 662 885 029
9 560 670 956

6 140 000

47 255 948 720
58 341 948 720

-188 948 720  

40 551 565 026 
50 320 304 626 

41 400 082 042

40 889 550 500 

55 564 715 538

3 628 284 462  

53 241 270 053 

0

0

7 30 274 000
875 254 197
1 605 528 197

16 883 000  

7 311 218 000
-70 000 000
7 279 525 455
177 474 545
206 636 292
363 708
130 309 572 202
3 564 056 995

533 196 000 
968 664 203 
1 501 860 203 

8 112 728 400 

7 280 085 455 

206 636 292 

120 662 885 029 
9 560 670 956 

17 

18 
19 

20 

EN 

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. 

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