Amended proposal for a Decision of the European Parliament and of the Council amending the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management as regards the multiannual financial framework
Date: 2009-04-08
Institutions: European Commission
Subjects: budgetary discipline (EU), commitment of expenditure, financial management, fund (EU), institutional agreement, revision of financial perspectives

EN 

EN 

   EN 

 
 
COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 8.4.2009 
COM(2009)171 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT AND THE COUNCIL 

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

Amended proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

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

EN 

   EN 

 
 
 
  
 
 
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT AND THE COUNCIL 

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

Financing projects in the field of energy in the context of the European Economic 
Recovery Plan (amended proposal) 

In its proposal of 10 December 2008 concerning the revision of the financial framework for 
"Financing  trans-European  energy  interconnections  and  broadband  infrastructure  projects  in 
the context of the European Economic Recovery Plan"1, the Commission proposed to increase 
the  financial  framework's  annual  ceilings  for  commitment  appropriations  under  heading  1A 
by EUR 3 000 million for 2009 and by EUR 2 000 million for 2010. This increase was to be 
offset  by  decreasing  the  annual  ceilings  for  commitment  appropriations  under  heading  2  by 
EUR 3 500 million for 2008 and by EUR 1 500 million for 2009, in accordance with point 23, 
second  paragraph,  of  the  Interinstitutional  Agreement  on  budgetary  discipline  and  sound 
financial management of 17 May 2006 (IIA)2. 

In  the  light  of  first  discussions  of  the  above  proposal  with  the  budgetary  authority,  the 
Commission submitted a package of proposals on 28 January 2009 with a view to establishing 
the legal basis for the investments concerned3. These proposals implied a first adjustment of 
the Commission's proposal for revision of the MFF. The amount of the increase of the ceilings 
for heading 1A for financing projects in the field of energy would be limited to EUR 3 500 
million.  And  EUR  1  500  million  would  be  made  available  within  heading  2  for  developing 
broadband internet in rural areas and strengthening operations related to the "new challenges" 
defined  in  the  context  of  the  assessment  of  the  2003  mid-term  reform  of  the  Common 
Agricultural Policy ("Health Check") and be implemented by the European Agricultural Fund 
for Rural Development.  

Following further discussions the European Parliament, the Council and the Commission have 
agreed at the trilogue meeting of 2 April 2009 to finance the package as follows4:  

(1) 

The  package,  which  aims  at  providing  additional  stimulus  to  the  economy  and 
improving energy security, amounts to EUR 5 000 million in current prices: 

1 
2 
3 

4 

COM(2008) 859 final/2. 
OJ C 139, 14.6.2006, p. 1. 
Communication  to  the  European  Parliament,  the  Council,  the  European  Economic  and  Social 
Committee and the Committee of the Regions "Investing today in tomorrow's Europe, COM(2009) 36 
final.-  Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  establishing  a 
programme  to  aid  economic  recovery  by  granting  Community  financial  assistance  to  projects  in  the 
field  of  energy:  COM(2009)  35  final.-  Proposal  for  a  Council  Regulation  amending  Regulation  (EC) 
1698/2005 on support for rural development by the European Agricultural Fund for Rural Development 
(EAFRD), and the proposal for a Council Decision amending Decision 2006/493/EC laying down the 
amount  of  Community  support  for  rural  development  for  the  period  from  1  January  2007  to  31 
December 2013, its annual breakdown and the minimum amount to be concentrated in regions eligible 
under the Convergence Objective: COM(2009) 38 final.  
The  agreement  takes  the  form  of  a  Declaration  attached  to  the  Interinstitutional  Agreement  on 
budgetary discipline and sound financial management. The projects eligible for Community support are 
identified in the legislative acts concerned.  

EN 

2 

   EN 

 
                                                 
(a) 

(b) 

EUR 3 980 million will be made available for the financing of energy projects 
under heading 1A of the financial framework: EUR 2 000 million in 2009 and 
EUR 1 980 million in 2010.  

In  addition,  EUR  1  020  million  will  be  made  available  within  heading  2  for 
developing  broadband  internet  in  rural  areas  and  strengthening  operations 
related to the "new challenges" defined in the context of the Health Check.  

(2) 

The  financing  of  the  total  amount  of  EUR  5  000  million  will  be  secured  as  soon  as 
possible: 

(a) 

(b) 

The 2009 ceiling of heading 1 A will be increased by an amount of EUR 2 000 
million, which will be offset by a decrease of the 2009 ceiling of heading 2 by 
the  same  amount  in  accordance  with  points  21  to  23  of  the  IIA.  In  addition, 
EUR  600  million  will  be  added  to  rural  development  in  the  2009  budget  for 
financing broadband internet and strengthening operations related to the "new 
challenges". The multiannual framework will be revised and at the same time 
the  2009  budget  amended  accordingly  on  the  basis  of  the  present  amended 
Commission  proposal  and  a  Preliminary  Draft  Amending  Budget  to  the  2009 
budget. 

The  financing  of  the  remaining  amount  (EUR  2  400  million)  will  be  secured 
through  a  compensation  mechanism  at  the conciliation of the  2010 budgetary 
procedure by using all budgetary means foreseen in its legal framework, to be 
completed,  if  needed,  at  the  latest  at  the  conciliation  of  the  2011  budgetary 
procedure:  

– 

– 

– 

The  European  Parliament,  the  Council  and  the  Commission  will 
examine  all  available  sources  that  could  provide  for  the  compensation 
of funds.  

Before the use of the available amount within Heading 2 is considered, 
EUR  420  million  will  be  committed  for  financing  broadband  internet 
and strengthening operations related to the "new challenges" defined in 
the context of the Health Check in 2010. 

In  order  to  compensate  for  the  amount  of  EUR  1  980  million,  the 
remaining  margins  under  the  2009  ceilings  and  the  2010  available 
margins  (with  due  respect  to  point  13  of  the  Interinstitutional 
Agreement)  and,  if  necessary,  all  other  financial  availabilities  will  be 
used, 
the  2011  available  margins.  The  compensation 
mechanism  will  be  without  prejudice  to  the  financial  envelopes  of  the 
co-decided programmes and the annual budgetary procedure. 

including 

(3) 

The overall ceiling of the 2007-2013 financial framework will not be exceeded. 

The  present  amended  proposal  covers  the  revision  of  the  2007-2013  financial  framework 
foreseen  as  part  of  the  first  step  of  the  above  financing  agreement  between  the  three 
institutions.  

The current margin of heading 2 for the year 2009 amounts to EUR 3 517 million. Taking into 
account  the  EUR  600  million  proposed  to  be  used  within  heading  2  for  broadband 
infrastructure and the "new challenges" under the Health check, coupled with the envisaged 
reduction of the ceiling of EUR  2  000  million,  this  leaves  a  margin of more than EUR 900 
million available under the ceiling for heading 2 in 2009. This is considered as sufficient for 
coping  with  unexpected  events  in  the  agriculture  sector.  In  any  case,  the  Commission  has 

EN 

3 

   EN 

 
undertaken  to  take  all  appropriate  measures  to  ensure  that  decisions  taken  on  CAP 
expenditure and its financing, including the agreement on the Health Check, are respected. 

In terms of payments appropriations, point 23, fourth paragraph, of the IIA requires that any 
revision must maintain an appropriate relationship between commitments and payments. The 
annual ceilings for payment appropriations need to be modified on the basis of the payment 
profiles  foreseen  for  the  additional  commitments  under  heading  1A  and  the  reduction  of 
payments corresponding to the reduction of commitment appropriations for heading 2 in 2009 
(EUR 2 000 million).  

No  increase  of  the  payment  ceilings  is  foreseen  with  regard  to  the  EUR  1  020  million  for 
developing  broadband  internet  in  rural  areas  and  strengthening  operations  related  to  the 
Health Check's "new challenges". 

The  below  table  summarises  the  proposed  changes  to  the  ceilings  for  commitment  and 
payment appropriations in the financial framework. Amounts are expressed in current prices: 

Commitment appropriations (EUR 
million)

1a. Competitiveness for Growth 
and Employment

2. Preservation and Management 
of Natural Resources

Total
change
appropriations

Total
appropriations

change

in commitment

0

in

payment

2007

2008

2009

2010

2011

2012

2013

2007-2013

2.000

-2.000

0

0

0

0

0

0

0

-1.924

650

430

569

275

2.000

-2.000

0

0

0

0

0

Overall,  the  revision  shall  be  neutral  in  terms  of  the  global  ceilings  for  commitment  and 
payment appropriations expressed in current prices.  

The  above  changes  result  in  the  below  financial  framework  table  in  current  prices,  which 
incorporates  the  technical  adjustment  of  the  financial  framework  for  2010  in  line  with 
movements in GNI made in accordance with Point 16 of the IIA5.  

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

5 

Communication  from  the  Commission  to  the  European  Parliament  and  the  Council  on  the  technical 
adjustment of the financial framework for 2010 in line with movements in GNI, COM(2009) 148 final 
of 1.4.2009.  

EN 

4 

   EN 

 
 
                                                 
FINANCIAL FRAMEWORK 2007-2013 REVISED FOR EUROPEAN ECONOMIC RECOVERY PLAN (CURRENT PRICES)

COMMITMENT APPROPRIATIONS

1. Sustainable Growth

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

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

3. Citizenship, freedom, security and justice

3a Freedom, Security and Justice
3b Citizenship

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

2007

53.979

8.918

45.061

55.143

45.759

1.273

637

636

6.578

7.039

445

2008

57.653

10.386

47.267

59.193

46.217

1.362

747

615

7.002

7.380

207

2009

61.700

13.272

48.428

57.639

46.679

1.523

872

651

7.440

7.699

210

2010

61.782

12.388

49.394

60.113

47.146

1.693

1.025

668

7.893

8.008

2011

63.638

12.987

50.651

60.338

47.617

1.889

1.206

683

8.430

8.334

2012

66.628

14.203

52.425

60.810

48.093

2.105

1.406

699

8.997

8.670

(EUR million - current prices)

2013

69.621

15.433

54.188

61.289

48.574

2.376

1.661

715

9.595

9.095

Total
2007-2013
435.001

87.587

347.414

414.525

330.085

12.221

7.554

4.667

55.935

56.225

862

TOTAL COMMITMENT APPROPRIATIONS

124.457

132.797

136.211

139.489

142.629

147.210

151.976

974.769

as a percentage of GNI

1,02%

1,08%

1,15%

1,15%

1,13%

1,12%

1,11%

1,11%

TOTAL PAYMENT APPROPRIATIONS

122.190

129.681

121.934

134.155

133.882

140.769

142.683

925.294

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

1,00%

0,24%

1,24%

1,05%

0,19%

1,24%

1,03%

0,21%

1,24%

1,10%

0,14%

1,24%

1,06%

0,18%

1,24%

1,07%

0,17%

1,24%

1,04%

0,20%

1,24%

1,05%

0,19%

1,24%

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

EN 

5 

EN 

 
  
 
Amended proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

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

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Interinstitutional  Agreement  between  the  European  Parliament,  the 
Council  and  the  Commission  of  17  May  2006  on  budgetary  discipline  and  sound  financial 
management6,  and  in  particular  to  Points  21,  22,  first  and  second  subparagraphs,  and  23 
thereof, 

Having regard to the proposal from the Commission7, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

At the trilogue meeting of 2 April 2009 the European Parliament, the Council and the 
Commission  have  agreed  on  the  financing,  in  the  framework  of  the  European 
Economic Recovery Plan for modernisation of infrastructures and energy solidarity, of 
projects  in  the  field  of  energy  and  broadband  internet,  as  well  as  for  strengthening 
operations related to the "new challenges" defined in the context of the assessment of 
the 2003 mid-term reform of the Common Agricultural Policy ("Health Check")8. The 
financing  requires,  as  a  first  step,  a  revision  of  the  multiannual  financial  framework 
2007-2013  in  accordance  with  Points  21,  22,  and  23  of  the  Interinstitutional 
Agreement, so as to raise the ceiling for the year 2009 for commitment appropriations 
under sub-Heading 1A by an amount of EUR 2 000 million in current prices. 

The increase of the ceiling for sub-Heading 1 A will be fully offset by decreasing the 
ceiling  for  commitment  appropriations  under  heading  2  for  the  year  2009  by  EUR  2 
000 million.  

In order to keep an appropriate relationship between commitments and payments, the 
annual  ceilings  for  payment  appropriations  will  be  adjusted.  The  adjustment  will  be 
neutral. 

Annex  I  of  the  Interinstitutional  Agreement  on  budgetary  discipline  and  sound 
financial management should therefore be amended accordingly9, 

HAVE DECIDED AS FOLLOWS: 

6 
7 
8 
9 

OJ C 139, 14.6.2006, p. 1. 
COM(2008) 859 final/2, as amended by COM(2009) … final. 
COM(2008) 800. 
For that purpose, the figures resulting from the above agreement are converted into 2004 prices. 

EN 

6 

   EN 

 
                                                 
Sole Article 

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

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

EN 

7 

   EN 

 
 
 
ANNEX  

FINANCIAL FRAMEWORK 2007-2013 REVISED FOR EUROPEAN ECONOMIC RECOVERY PLAN (CONSTANT 2004 PRICES)

COMMITMENT APPROPRIATIONS

1. Sustainable Growth

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

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

3. Citizenship, freedom, security and justice

3a Freedom, Security and Justice
3b Citizenship

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

(EUR million - constant 2004 prices)

2007

50.865

8.404

42.461

51.962

43.120

1.199

600

599

6.199

6.633

419

2008

53.262

9.595

43.667

54.685

42.697

1.258

690

568

6.469

6.818

191

2009

55.883

12.021

43.862

52.205

42.279

1.380

790

590

6.739

6.973

190

2010

54.860

11.000

43.860

53.379

41.864

1.503

910

593

7.009

7.111

2011

55.400

11.306

44.094

52.528

41.453

1.645

1.050

595

7.339

7.255

2012

56.866

12.122

44.744

51.901

41.047

1.797

1.200

597

7.679

7.400

2013

58.256

12.914

45.342

51.284

40.645

1.988

1.390

598

8.029

7.610

Total
2007-2013
385.392

77.362

308.030

367.944

293.105

10.770

6.630

4.140

49.463

49.800

800

TOTAL COMMITMENT APPROPRIATIONS

117.277

122.683

123.370

123.862

124.167

125.643

127.167

864.169

as a percentage of GNI

1,08%

1,09%

1,07%

1,05%

1,03%

1,02%

1,01%

1,048%

TOTAL PAYMENT APPROPRIATIONS

115.142

119.805

110.439

119.126

116.552

120.145

119.391

820.600

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

1,06%

0,18%

1,24%

1,06%

0,18%

1,24%

0,96%

0,28%

1,24%

1,01%

0,23%

1,24%

0,97%

0,27%

1,24%

0,98%

0,26%

1,24%

0,95%

0,29%

1,24%

1,00%

0,24%

1,24%

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

EN 

8 

EN