Preliminary draft amending budget n° 8 to the general budget 2008 - Statement of expenditure by section - Section III - Commission
Date: 2008-09-16
Institutions: Directorate-General for Budget, European Commission
Subjects: EU aid, European Commission, amending budget, budgetary expenditure, fund (EU), general budget (EU), preliminary draft EC budget

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 16.9.2008 
COM(2008) 564 final 

PRELIMINARY DRAFT AMENDING BUDGET N° 8 
TO THE GENERAL BUDGET 2008 

STATEMENT OF EXPENDITURE BY SECTION 
Section III - Commission 

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PRELIMINARY DRAFT AMENDING BUDGET N° 8 
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  last  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 8 to the 2008 budget. 

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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. 

3. 

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

Rapid Response to Food Price Increases in Developing Countries ............................. 4 

Consular Cooperation................................................................................................... 5 

SUMMARY TABLE BY HEADING OF THE FINANCIAL FRAMEWORK ....................... 6 

CHANGES TO THE STATEMENT OF EXPENDITURE BY SECTION 

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

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1. 

INTRODUCTION 

Preliminary  Draft  Amending  Budget  (PDAB)  No 8  for  the  year  2008  covers  the  following 
elements: 

–  The  creation  of  a  new  budget  article  21 02 03 Rapid  response  to  food  price  increases  in 
in  commitment 

developing  countries.  It 
to  enter  EUR 750 million 
is  proposed 
appropriations in the reserve. No payment appropriations are requested. 

–  The creation of a new budget article 19 06 06 Consular Cooperation. A token entry (p.m.) 

is proposed for both commitment and payment appropriations at this time. 

2. 

RAPID RESPONSE TO FOOD PRICE INCREASES IN DEVELOPING COUNTRIES 

Rising food prices in 2007 and 2008 have had negative effects on many developing countries 
and their populations. Poverty for many millions of people has worsened, and recent progress 
towards achieving the Millennium Development Goals is at risk. Moreover, rising food prices 
have resulted in riots, unrest and instability in several countries, risking the achievements of 
years of political, developmental and peacekeeping investment. 

At  the  same  time,  high  agricultural  prices  have  contributed  to  a  reduction  in  market-related 
agricultural expenditure in the 2008 Community budget, and to lower estimates for the 2009 
budget  within  heading  2  of  the  financial  framework.  Current  estimates  indicate  that  a 
significant margin will be available in this heading in 2008, and to a lesser extent in 2009.  

The  European  Council  of  19-20  June  concluded  that  action  is  required  from  the  EU  from  a 
development and humanitarian assistance perspective3. The European Council welcomed the 
Commission's intention to come forward with a proposal for a new fund to support agriculture 
in  developing  countries,  within  the  framework  of  the  current  multi-annual  financial 
framework,  and  stated  that  the  EU  would  support  a  strong  agricultural  supply  response  in 
developing  countries,  providing  in  particular  the  necessary  financing  for  agricultural  inputs 
and assistance in using market-based risk management instruments. The Council also stated 
that in its response strategy, the Union would work in close liaison with the United Nations 
and  other  international  organisations,  and  within  the  framework  of  partner  countries'  own 
policies and strategies. 

On  18  July  2008  the  European  Commission  adopted  a  proposal  for  the  Regulation 
establishing  a  facility  for  rapid  response  to  soaring  food  prices  in  developing  countries 
(hereafter referred to as the "Facility")4. It is proposed that part of the margin under heading 2 
of  the  multi-annual  financial  framework  would  be  used  in  2008  and  2009  in  favour  of  the 
most  affected  developing  countries.  The  "Facility"  would  be  implemented  through 
international  and  regional  organisations,  and  would  primarily  support  agriculture  in 
developing  countries  and  enable  them  to  enhance  production  levels.  It  will  also  help  those 
countries to rapidly mitigate the negative effects of the high food prices on the poorest. The 
Regulation  will  be  valid  only  for  a  limited  period  of  two  years  (2008-2009),  and  the  total 

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Council of the European Union, document 11018/08 of 20.06.2008. 
COM (2008) 450 of 18.07.2008. 

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financial  reference  amount  proposed  for 
EUR 1.0 billion.  

its 

implementation  over 

that  period 

is 

From this overall amount, EUR 750 million would be committed under the 2008 budget and 
EUR 250 million under the 2009 budget.  

The Commission therefore proposes to create the budget line 21 02 03 Rapid response to food 
price increases in developing countries, with commitment appropriations of EUR 750 million 
in reserve, pending adoption of the legal base. Due to the possible timing of adoption of the 
legal base, towards the end of 2008, no payment appropriations are foreseen for 2008.  

3. 

CONSULAR COOPERATION 

Due  to  the  increasing  significance  and  frequency  of  major  crises  in  third  countries,  the  EU 
institutions  and  the  Member  States  have  initiated  reflection  on  the  reinforcement  of  their 
capacity for crisis response, including in the area of consular cooperation. The guidelines for 
the  consular  protection  of  the  EU  citizens  in  third  countries,  which  have  been  adopted  by 
Council  in  June  20065,  foresee  that  the  "Commission  delegations  should  be  included  in 
contingency  planning.  It  is  understood  that  –  at  the  request  of  the  Presidency  and  as 
appropriate  –  Commission  delegations/representations  could  provide  logistic  support  to 
Member States' missions, especially during crises." 

Based on article 20 of the TEC, concerning the protection of EU citizens not represented in 
third countries by their Member States, and on article 20 of the TEU, providing a role for the 
Commission delegations in the implementation of the TEC article, the possible actions could 
include,  for  example,  placing  personnel,  office  space  or  material  at  a  disposal  of  Member 
States'  consulates;  participation  in  the  renting  of  transport,  material  or  space;  or  logistic 
support. 

As  these  actions  could  go  beyond  the  possibilities  for  the  use  of  the  administrative  support 
expenditure  of  the  delegations,  which  is  strictly  limited  to  the  needs  of  functioning  of  the 
delegations,  the  Commission  proposes  to  create  a  specific  budget  line  19 06 06  Consular 
cooperation on the basis of article 49, §6 point d) of the financial regulation (specific powers 
of  the  Commission  under  the  Treaties),  which  would  allow  for  financing  of  potential 
operational expenditure in favour of European citizens.  

The annual amount necessary for this potential expenditure would be limited (in the range of 
EUR 50 000 to EUR 500 000), and would cover actions undertaken in third countries. 

The  budget  line  is  proposed  with  a  token  entry  (p.m.)  for  both  commitment  and  payment 
appropriations. If necessary a transfer could be made within chapter 19 06 Crisis response and 
global threats to security. 

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Council of the European Union, document 10109/2/06 of 16.06.2006. 

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Financial framework 
Heading/subheading 

2008 Financial framework 

Budget 2008 (incl. AB 1-4/2008 and PDAB 5-
7/2008) 

PDAB 8/2008 

Budget 2008 + AB 1-4/2008 and PDAB 5-
8/2008 

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PA 

CA 

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SUMMARY TABLE BY HEADING OF THE FINANCIAL FRAMEWORK 

and 

10 386 000 000

11 086 000 000

9 768 739 600

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

growth 

for 

Total 
Margin6 
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 PLAYER8 

5. ADMINISTRATION9 

6. COMPENSATION 

Total 
Margin7   

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
58 341 948 720

-188 948 720  

40 538 785 026
50 307 524 626

41 006 490 000

40 889 550 500

55 564 715 538

3 628 284 462  

730 274 000
888 034 197
1 618 308 197

16 883 000  

7 311 218 000
-70 000 000
7 279 525 455
177 474 545
206 636 292
363 708
130 322 352 202
3 564 056 995

53 241 270 053

750 000 000

533 196 000
981 444 203
1 514 640 203

8 112 728 400

7 280 085 455

206 636 292

120 662 885 029
9 573 450 956

750 000 000

11 086 000 000

9 768 739 600 

47 255 948 720
58 341 948 720

-188 948 720  

40 538 785 026 
50 307 524 626 

41 006 490 000

40 889 550 500 

56 314 715 538

2 878 284 462  

53 241 270 053 

730 274 000
888 034 197
1 618 308 197

16 883 000  

7 311 218 000
-70 000 000
7 279 525 455
177 474 545
206 636 292
363 708
131 072 352 202
2 814 056 995

533 196 000 
981 444 203 
1 514 640 203 

8 112 728 400 

7 280 085 455 

206 636 292 

120 662 885 029 
9 573 450 956 

0

0

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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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