Preliminary draft amending budget n° 10 to the general budget 2008 - Statement of expenditure by section : section III - Commission
Date: 2008-10-31
Institutions: Directorate-General for Budget, European Commission
Subjects: European Commission, European citizenship, amending budget, budgetary expenditure, conservation of resources, economic growth, employment policy, fund (EU), preliminary draft EC budget

EN 

EN 

   EN 

 
 
COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 31.10.2008 
COM(2008) 693 final 

PRELIMINARY DRAFT AMENDING BUDGET N° 10 
TO THE GENERAL BUDGET 2008 

STATEMENT OF EXPENDITURE BY SECTION 
Section III - Commission 

EN 

   EN 

 
 
 
  
PRELIMINARY DRAFT AMENDING BUDGET N° 10 
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 10 to the 2008 budget. 

1 
2 

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

EN 

2 

   EN 

 
                                                 
TABLE OF CONTENTS 

1. 

2. 

2.1. 

2.2. 

3. 

3.1. 

3.2. 

3.3. 

3.4. 

3.5. 

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

Increase in the Forecast of Revenue............................................................................. 4 

Revision of own resources ........................................................................................... 4 

Other revenue ............................................................................................................... 4 

Decrease in Payment Appropriations........................................................................... 5 

Heading 1a Competitiveness for Growth and Employment ........................................ 5 

Heading 1b Cohesion for Growth and Employment.................................................... 6 

Heading 2 Preservation and Management of Natural Resources................................. 7 

Heading 3b Citizenship ................................................................................................ 7 

Heading 4 EU as a Global Player................................................................................. 8 

SUMMARY TABLE BY HEADING OF THE FINANCIAL FRAMEWORK ..................... 11 

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. 

EN 

3 

   EN 

 
1. 

INTRODUCTION 

Preliminary  Draft  Amending Budget (PDAB) No 10  for  the  year  2008  covers  the  following 
elements: 

–  the need to budget a net increase in the forecast of revenue (EUR 1 198,7 million) after the 

revision of the forecasts of own resources and other revenue; 

–  the need for a decrease of payment appropriations in budget lines for headings 1a, 1b, 2, 3b 
and 4 (EUR 4 891,3 million), after taking into account the redeployments proposed in the 
global transfer. 

2. 

INCREASE IN THE FORECAST OF REVENUE  

2.1. 

Revision of own resources 

In accordance with Article 16 of Council Regulation (EC, Euratom) No 1150/2000 of 22 May 
20003, the Commission has revised the forecasts for own resources. This refers in particular to 
VAT and GNI balances and to traditional own resources. 

As  far  as  the  VAT  and  GNI  own  resources  balances  are  concerned,  and  on  the  basis  of  the 
available information, the Commission proposes to enter an amount of EUR 1 823,7 million. 
This increase relates to chapters 3 1 and 3 2 of the revenue side of the budget. 

At this stage the calculations for Member States' balances are still provisional because of the 
on-going  verification  of  VAT  and  GNI  data.  This  may  lead  the  Commission  to  revise  the 
figures in the course of the procedure for this PDAB.  

The  Commission  also  proposes  to  decrease  Traditional  Own  Resources  (TOR)  by 
EUR 1 600 million in chapter 12 of revenue. The Amending Budget No 5/20084 estimated the 
total of traditional own resources as a net amount of EUR 18 536,3 million. However taking 
into account the evolution of the cashed amounts since the beginning of the year, this is now 
estimated at EUR 16 936,3 million. If new actual data for the last quarter of the year would 
imply significant changes to this estimation, the Commission will revise its figures also in the 
course of the budgetary procedure. 

2.2. 

Other revenue 

Financial corrections in connection with the Structural funds (item 6 5 0 0) 

Taking  into  account  the  cashed  amounts  for  item  6 5 0 0,  and  assuming  that  these  amounts 
will not be re-used this year, it is proposed to budget an amount of EUR 313 million. 

Other non-assigned contributions and refunds (item 6 6 0 1) 

3 
4 

OJ L 130, 31.5.2000, p. 1.  
Adopted on 2 September 2008. 

EN 

4 

   EN 

 
                                                 
Considering  the  actual  outturn  for  item  6 6 0 1  a  supplementary  EUR 33 million  can  be 
entered. 

Interest on late payments and fines 

Chapters 7 0 and 7 1 of the general statement of revenue account for interest on late payments 
and  fines.  The  Amending  Budget  No  3/20085  already  increased  amounts  entered  in  Budget 
2008 by EUR 849,2 million. Considering the amounts that at this stage of the year are cashed 
or will probably be cashed, it is proposed to enter an additional amount of EUR 629 million in 
the budget. 

3. 

DECREASE IN PAYMENT APPROPRIATIONS 

The  Commission  proposes  to  adjust  the  level  of  payment  appropriations  for  certain  budget 
lines in order to align them more closely to the latest estimates of needs and working on the 
assumption  that  the  rebalancing  of  payment  appropriations  between  budget  lines  requested 
separately  by  the  Commission's  in  the  so-called  'Global  Transfer'  will  be  accepted  by  the 
Budget Authority. The reduction in the level of payment appropriations proposed amounts to 
EUR 4 891,3 million. 

3.1. 

Heading 1a Competitiveness for Growth and Employment 

Completion of Programmes for Enterprises (- EUR 50 million) 

The  payment  appropriations  under  the  budget  article  01 04 05  are  paid  into  two  Trust 
Accounts,  managed  on  the  Commission's  behalf  by  the  European  Investment  Fund  (EIF). 
Payments in fulfilment of obligations undertaken by the EIF (on behalf of the Commission) 
are made by disbursements from these accounts, as required. The two accounts cover the two 
financial instruments, Guarantees and Venture Capital. 

Under  this  programme,  commitment  appropriations  are  necessary  for  the  Commission  to 
authorise 
to  sign  contracts  with  financial 
intermediaries. Payment appropriations are only partially required in the short term, since they 
are contingent upon certain conditions being met: 

implementing  organisation, 

the  EIF,  as 

–  for Venture Capital (VC) investments, funds are only paid to the VC company when they 
are  needed  to  meet  an  investment  or  to  pay  eligible  cost  of  the  VC  fund.  If  there  is  no 
investment, then there is no payment. 

–  for Guarantees, funds are only paid to a financial intermediary when defaults are realised 
and  the  financial  intermediary  requests  payment  under  the  guarantee.  If  there  are  no 
defaults, then there are no payments. 

Since  at  all  times  the  EIF  must  be  in  a  position  to  make  payments  in  a  timely  manner, 
payment appropriations are used to transfer sufficient funds to Trust Accounts (maintained by 
the EIF on behalf of the Commission). Regular monitoring is carried out as to the expected 
rate  of  payments,  to  ensure  that  sufficient  funds  continue  to  be  available  to  the  EIF  at  all 
times. "Sufficient" in this case is with reference to the expected rate of disbursement, not the 

5 

OJ L 208, 5.8.2008, p.1. 

EN 

5 

   EN 

 
                                                 
total commitment, as the contracts signed by the EIF have a significant lifetime. Payments of 
amounts committed can be made over a significant time period. 

In  view  of  the  above,  the  amount  of  disbursements  required  in  any  given  year  can  not  be 
stated precisely in advance; the Commission's services remain in contact with the EIF during 
any given year, to adjust the requirements in the light of actual to-be-drawn payments. 

In the light of the information received from the EIF, the Commission is proposing a decrease 
of  payment  appropriations  from  EUR 86,2 million  to  EUR 36,2 million,  (- EUR 50 million). 
This estimate is based on the forecasted disbursement needs for the rest of 2008 that are very 
unlikely  to  exceed  a  maximum  of  EUR 36 million.  Furthermore,  there  are  sufficient  funds 
already in the Trust Accounts to cover even significantly higher disbursements if necessary.  

3.2. 

Heading 1b Cohesion for Growth and Employment 

Structural and Cohesion Funds (- EUR 4 514,7 million) 

In this Preliminary Draft Amending Budget, a reduction of EUR 4 514,7 million in payment 
appropriations for Heading 1b is proposed. The rationale for this is given below. 

While  the  vast  majority  of  Operational  Programmes  for  the  new  2007-2013  programming 
period  were  adopted  in  2007,  interim  payments  for  these  programmes  will  be  negligible  in 
2008. Before submitting the first application for payment on a given operational programme, 
the  Member  State  concerned  must  first  submit  a  report  on  the  management  and  control 
systems  which  has  subsequently  to  be  accepted  by  the  Commission.  Article  71  of  Council 
Regulation  1083/20066  stipulates  that  this  report  shall  be  submitted  "at  the  latest  within 
twelve months of the approval of each operational programme". 

As  of  the  end  of  September,  the  situation  regarding  these  management  and  control  systems 
reports was as follows. For European Social Fund (ESF) programmes, out of a possible 117 
reports, 16 had been sent by Member States, of which two had been accepted. For European 
Regional  Development  (ERDF)  and  Cohesion  Fund  (CF)  programmes;  out  of  316  system 
reports,  87  had  been  received  by  the  Commission,  of  which  18  had  been  accepted.  The 
submission of reports by the Member States has been slower than originally anticipated, and 
this  has  had  a  direct  impact  on  the  required  payment  appropriations  for  interim  payments. 
Moreover, the approval of the management and control systems will not necessarily lead to an 
immediate inflow of payment claims as, especially for ERDF, Member States have indicated 
that  they  will  not  start  spending  until  the  management  and  control  systems  have  been 
approved. 

For the Cohesion Fund, and to a lesser extent certain operational programmes of the ERDF, 
the effect is compounded by the fact that the 949 Major Projects must also be submitted by 
Member States to the Commission for approval. 

This  means  that  almost  all  payments  in  2008  for  the  2007-2013  programmes  have  been 
limited to the programmed advance payments. Interim payments for the 2000-06 programmes 
have,  however,  exceeded  expectations  and  consequently  absorbed  a  significant  part  of  the 
payments  originally  estimated  for  the  2007-13  programmes  (EUR  7,3  billion  have  been 
transferred from the new programmes towards the old ones). However, an important number 

6 

OJ L 210, 31.7.2006, p.25. 

EN 

6 

   EN 

 
                                                 
of  payments  are  currently  suspended  by  the  Commission  for  the  2000-2006  programmes, 
following  audits  of  the  management  and  control  systems  of  certain  specific  operational 
programmes,  and  while  awaiting  for  the  Member  States  concerned  to  take  the  necessary 
corrective measures. 

Taking  into  account  the  above,  the  Commission  proposes  to  reduce  payment  appropriations 
for the following budget lines under Heading 1b: 

Budget Line 

Name 

Change (EUR) 

04 02 17 

04 02 19 

13 03 16 

13 03 18 

13 03 19 

13 04 02 

Total Heading 1b 

ESF — Convergence 

ESF — Regional competitiveness and employment 

ERDF — Convergence 

ERDF — Regional competitiveness and employment 

ERDF — European territorial cooperation 

Cohesion Fund 

-649 702 522

-965 000 000

-1 127 000 000

-200 000 000

-158 000 000

-1 415 000 000

-4 514 702 522

It should be recalled that the 2008 budget requested by the Commission for Heading 1b was 
established  under  the  hypothesis  that  all  the  2007-2013  programmes  would  be  adopted  in 
2007  and  that  execution  would  start  immediately  after  their  approval,  leading  to  an 
appropriate level of interim payments. 

3.3. 

Heading 2 Preservation and Management of Natural Resources 

Reserve for Fisheries Agreements (- EUR 20,7 million) 

The reserve line 40 02 41 02 includes appropriations for possible new Fisheries Agreements 
to  be  concluded  with  certain  third  countries.  On  the  basis  of  the  current  situation  of  the 
negotiations  with  Liberia,  Sierra  Leone,  Tanzania,  Kenya  and  Senegal,  the  possible 
agreements  with  these  countries  will  not  be  finalised  up  to  the  end  of  the  year  2008. 
Consequently,  the  non-used  payment  appropriations  of  EUR 20,7 million  can  be  cancelled. 
The corresponding commitment appropriations have been mostly used already in the context 
of the transfer DEC22/2008. 

3.4. 

Heading 3b Citizenship 

Public Health Programme (- EUR 13,6 million) 

An under-implementation of about EUR 14 million in payment appropriations is expected on 
item 17 03 01 01 Completion of the Public Health programme (2003 to 2008) in 2008. There 
are two major reasons for this under-implementation. 

First, an amount of approximately EUR 7 million in assigned revenue has been committed by 
the  Public  Health  programme  in  the  last  quarter  of  2007,  allowing  additional  interesting 
projects  to  be  financed  by  the  programme.  An  equal  amount  was  available  in  payments 
allocations, but given the commitment date, no payments could be made yet in 2007. These 
payment  allocations  have  been  automatically  carried  forward  in  2008,  but  they  were  not 
foreseen  when  preparing  the  preliminary  draft  budget  2008,  at  the  beginning  of  2007.  As  a 

EN 

7 

   EN 

 
  
direct  consequence,  the  total  payment  appropriations  available  on  this  budget  item  are  in 
excess by around EUR 7 million. 

Moreover, for a large number of grants in the Public Health programme, prolongations have 
been  granted  by  the  Commission  because  the  beneficiaries  are  experiencing  difficulties  in 
delivering  the  requested  results  in  time.  Also,  some  beneficiaries  are  late  in  producing  their 
reimbursement files or the related evidence. As a consequence, several payments have been 
postponed to 2009 up to an amount of EUR 7 million. 

Transition Facility for Institution Building after Accession (- EUR 26,7 million) 

The  main  reason  for  the  underspend  is  the  suspension  of  payments  to  Bulgaria  under  the 
PHARE pre-accession assistance (see below) and the Transition Facility. On 23 July 2008, the 
European  Commission  adopted  a  decision  withdrawing  the  right  to  manage  programmes 
under  the  two  aforementioned  financial  instruments  for  two  of  the  four  Bulgarian 
Implementing  Agencies.  It  is  therefore  proposed  to  reduce  the  payment  appropriations  for 
article 22 03 01 by EUR 26,7 million. 

3.5. 

Heading 4 EU as a Global Player 

Instrument 
 EUR 47,6 million) 

for  Pre-Accession 

(IPA) — Human  Resources  Development 

(-

The Commission has not yet received the accreditation package and conferral of management 
request for IPA Component IV (Human resources) from the Turkish authorities. The formal 
transmission of the package was expected end of July according to information provided by 
the Turkish government in the margins of the Financing Agreement seminar which took place 
mid-July 2008. 

The compliance assessment  is still ongoing and no new date has  been given concerning the 
submission  of  the  accreditation  package  to  the  Commission.  Even  if  the  package  had  been 
received  before  end-September,  it  would  not  have  been  possible  for  the  Commission's 
auditors to assess it, arrange for the accreditation mission and make sure (in the unlikely event 
that  no  blocking  findings  come  out  from  the  mission)  that  the  conferral  of  management  is 
ready for adoption by the Commission before the end of the year. 

In  addition,  the  text  of  the  financing  agreement  has  not  been  agreed  with  the  Turkish 
authorities.  Considering  the  schedule  foreseen  with  another  "information  seminar"  in  mid-
October  and  taking  into  account  that  negotiations  and  component-adaptation  of  the 
Commission  model  agreement  can  only  start  afterwards,  it  does  not  seem  realistic  that  a 
financing agreement will be concluded before the end of the year. 

As  it  will  be  impossible  to  achieve  the  conferral  of  management  and  the  signature  of  the 
financing Agreement before year end, which are the conditions for the pre-financing payment, 
it is proposed to reduce the payment appropriations for article 04 06 01 by EUR 47,6 million. 

Instrument 
 EUR 70 million) 

for  Pre-accession  Assistance 

for  Rural  Development 

(IPARD) 

(-

As  foreseen  by  the legal  basis  –  no  payments,  including  the  pre-financing  ones,  can 
be made before  the  decision  for  the  "conferral  of  management"  is  adopted  by  the 

EN 

8 

   EN 

 
Commission.  Given  that  the  "conferral"  will  not  take  place  during  2008  for  any  of  the 
candidate countries all the payment appropriations for 2008 will remain unspent. 

Candidate  countries  have  to  establish  the  relevant  structures  (national  authorities  and/or 
agencies)  which  will  enable  the  implementation  of  the  programmes  in  a  sound  financial 
manner and then proceed with all the accreditation controls at the national level. Then once 
submitted by the candidate countries, the Commission has to conduct verifications in order to 
assess  the  administrative  structure  and  to  determine  whether  the  management  and  control 
systems specific for each measure achieve the Community standards. 

Even  though  candidate  countries  demonstrated  substantial  efforts  to  obtain  the  conferral  in 
2008, it is now clear that it will not be achieved this year. The latest forecast indicates that 
Croatia  will  grant  the  accreditation  of  the  measures  by  the  end  of  October  2008  to  request 
after that the "conferral of management" from the Commission which should be granted in the 
first  half  of  2009.  For  the  other  two  candidate  countries  the  delay  will  be  longer  given  the 
delay  in  the  national  level  accreditation  and  lack  of  experience  with  the  management  of 
Community funds. It is therefore proposed to decrease the payment appropriations for article 
05 05 02 by EUR 70 million. 

Instrument for structural policies for pre accession (ISPA) Completion of other previous 
projects (2000 to 2006) (- EUR 100 million) 

The  payment  appropriations  entered  in  budget  line  13 05 01 01  are  dedicated  to  the 
completion of projects in Bulgaria and Romania. The payment forecasts for this budget line 
have been significantly reduced by these Member States. This decrease in payment forecasts 
results from lower requests for reimbursements than expected in both countries as well as the 
suspension  of  payments  for  two  Bulgarian  projects.  Following  the  suspension  decision 
adopted in July 2008 by the Commission, no payment claims for the concerned projects are 
expected  this  year.  By  end  November  2008  the  Bulgarian  authorities  should  implement  a 
number  of  measures  (further  audits,  development  and  implementation  of  action  plan  and 
changes  in  the  financial  management  and  control  systems)  to  improve  the  overall 
management of both suspended projects. The Commission will follow up the implementation 
of  these  measures  after  they  are  completed  and  depending  on  the  results,  the  Commission 
could either lift the suspension or decide a financial correction.  

Accordingly, as a result of the decrease in payment forecasts, a reduction of EUR 100 million 
in payment appropriations is requested for item 13 05 01 01. 

Cooperation with Developing Countries in Asia (- EUR 48 million) 

Several  payments  foreseen  in  2008  on  budget  item  19 10 01 01  should  be  reduced  or 
cancelled for the following reasons: 

–  Bangladesh  (Education  Programme):  The  implementation  of  the  programme  is  much 
slower  than  expected  due  to  the  November  2007  cyclone  damage.  Following  the 
recommendation  for  a  mid-term  review  of  the  programme,  the  level  of  disbursement  for 
2008 is reduced by EUR 17 million. 

–  India  (Health  Sectoral  Budget  Support):  During  the  negotiations  of  the  financing 
agreement  with  the  Government  of  India,  due  to  administrative  difficulties  on  the 

EN 

9 

   EN 

 
beneficiary  side,  the  signature  of  the  agreement  has  been  delayed.  Therefore,  the  initial 
estimated amount is reduced by EUR 13 million. 

–  India:  For  a  contract  on  a  programme  for  enrichment  of  school  level  education  the  final 
amount  claimed,  due  to  an  unforeseen  recovery  order  on  the  contractor,  is  lower  than 
expected by EUR 1,7 million. 

–  Cambodia  (Budget  support  programme):  Due  to  slow  progress  in  the  Government's 
implementation  of  actions  required  before  the  release  of  funds,  the  EUR 5 million 
instalments will not be paid in 2008. 

–  Myanmar:  The  initially  forecasted  payment  of  EUR 4,3 million  for  contract  with  the 
United Nations Office for Project Services (UNOPS) regarding the "Three Diseases Fund" 
(HIV/AIDS,  malaria and tuberculoses)  has been revised to EUR 2 million since the audit 
has  revealed  some  matters  which  do  not  allow  for  a  full  payment  (reduction  of 
EUR 2,3 million). 

–  Pakistan:  Payment  of  a  tranche  release  of  EUR 6 million  is  not  expected  in  2008  for  the 
"Education Sector Support Programme" due to the position of the World Bank which has 
decided to change its programme financing  modality, resulting in the need for the EU to 
formulate a new policy matrix. As a consequence, the payment of the budget support will 
be delayed. 

–  Indonesia  (Law  and  security  programme):  The  signature  of  the  financing  agreement  has 
been  delayed  by  the  Government  so  that  the  contracts  have  not  yet  been  awarded.  The 
payments  linked  with  the  signature  of  these  contracts  (EUR 3 million)  are  postponed  to 
next year. 

EN 

10 

   EN 

 
Financial framework 
Heading/subheading 

2008 Financial framework 

Budget 2008 (incl. AB 1-6/2008 and PDAB 7-
9/2008) 

PDAB 10/2008 

Budget 2008 + AB 1-6/2008 and PDAB 7-
10/2008 

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

9 768 739 600

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

growth 

for 

Total 
Margin7 
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 PLAYER9 

5. ADMINISTRATION10 

6. COMPENSATION 

Total 
Margin8   

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

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
7 279 207 193
177 792 807
206 636 292
363 708
131 072 033 940
2 814 375 257

533 196 000
981 444 203
1 514 640 203

8 112 728 400

7 279 767 193

206 636 292

120 662 566 767
9 607 842 430

0

0
0

0

0
0

0

0

0

0

-50 000 000

11 086 000 000

9 718 739 600 

-4 514 702 522
-4 564 702 522

47 255 948 720
58 341 948 720

-188 948 720  

36 024 082 504 
45 742 822 104 

41 006 490 000

40 889 550 500 

-20 682 000

56 314 715 538

2 878 284 462  

53 220 588 053 

-40 300 000
-40 300 000

-265 600 000

0

0

-4 891 284 522

730 274 000
888 034 197
1 618 308 197

16 883 000  

7 311 218 000
-70 000 000
7 279 207 193
177 792 807
206 636 292
363 708
131 072 033 940
2 814 375 257

533 196 000 
941 144 203 
1 474 340 203 

7 847 128 400 

7 279 767 193 

206 636 292 

115 771 282 245 
14 499 126 952 

7 

8 
9 

10 

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. 

11 

EN