Draft interinstitutional agreement between the European Parliament, the Council and the Commission on cooperation in budgetary matters
Date: 2010-03-03
Institutions: European Commission
Subjects: Council of the European Union, EU financial instrument, European Commission, European Parliament, budget policy, budgetary cooperation, budgetary procedure, financial management, general budget (EU), interinstitutional agreement

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EUROPEAN COMMISSION 

Brussels, 3.3.2010 
COM(2010) 73 final 

Draft 

Interinstitutional Agreement 

between the European Parliament, the Council and the Commission on cooperation in 
budgetary matters 

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TABLE OF CONTENTS 

Interinstitutional Agreement between the European Parliament, the Council and the 
Commission on cooperation in budgetary matters..................................................................... 3 

PART I – Financial Framework and Special Instruments.......................................................... 5 

A. Provisions related to the financial framework....................................................................... 5 

B. Provisions related to the special instruments not included in the financial framework ........ 5 

B.1. Emergency Aid Reserve ..................................................................................................... 5 

B.2. European Union Solidarity Fund........................................................................................ 6 

B.3. Flexibility Instrument ......................................................................................................... 6 

B.4. European Globalisation Adjustment Fund ......................................................................... 7 

PART II – Improvement of Interinstitutional collaboration during the budgetary procedure ... 8 

A. The interinstitutional collaboration procedure ...................................................................... 8 

B. Incorporation of financial provisions in legislative acts........................................................ 8 

C. Expenditure relating to fisheries agreements......................................................................... 9 

D. Financing of the common foreign and security policy (CFSP)............................................. 9 

PART III – Sound financial management of EU funds ........................................................... 11 

A. Financial Programming ....................................................................................................... 11 

B. Agencies and European Schools.......................................................................................... 12 

C. New financial instruments ................................................................................................... 12 

ANNEX - Interinstitutional collaboration during the budgetary sector................................... 14 

Part A. Calendar of the budgetary procedure ........................................................................... 14 

Part B. Priorities for the Budget Procedure.............................................................................. 14 

Part C. Establishment of the Draft Budget and Updating of Estimates ................................... 14 

Part D. Budgetary procedure before the Conciliation .............................................................. 15 

Part E. Conciliation process ..................................................................................................... 15 

Part F. Amending Budgets ....................................................................................................... 16 

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Draft 

Interinstitutional Agreement 

between the European Parliament, the Council and the Commission on cooperation in 
budgetary matters 

THE  EUROPEAN  PARLIAMENT,  THE  COUNCIL  OF  THE  EUROPEAN  UNION  AND 
THE EUROPEAN COMMISSION, 

hereinafter referred to as the 'institutions', 

HAVE AGREED AS FOLLOWS 

1. 

2. 

3. 

4. 

5. 

The purpose of this Agreement adopted in accordance with Article 295 of the Treaty 
on  the  functioning  of  the  European  Union  (hereinafter  "TFEU")  is  to  improve  the 
functioning  of  the  annual  budgetary  procedure  and  cooperation  between  the 
institutions on budgetary matters. 

The Agreement is binding on all the institutions for as long as it is in force. 

This Agreement does not alter the respective budgetary powers of the institutions as 
laid down in the Treaties, in the Regulation laying down the Multiannual Financial 
Framework1  (hereinafter  referred  to  as  "MFF  regulation")  and  in  the  Financial 
Regulation2. 

Where  reference  is  made  to  this  Point,  the  Council  will  act  by  a  qualified  majority 
and  the  European  Parliament  by  a  majority  of  its  members  and  three  fifths  of  the 
votes cast. 

Any amendment of this Agreement requires the consent of all the institutions. 

This Agreement is in three parts: 

– 

– 

– 

Part  I  contains  complementary  provisions  related  to  the  multiannual  financial 
framework  and  provision  on  special  instruments  not  included  in  the  financial 
framework. 

Part  II  relates  to  the  interinstitutional  collaboration  during  the  budgetary 
procedure. 

Part  III  contains  provisions  related  to  sound  financial  management  of  EU 
funds. 

1 
2 

OJ L , p. . 
Council  Regulation  (EC,  Euratom)  No  1605/2002  of  25  June  2002  on  the  Financial  Regulation 
applicable to the general budget of the European Communities (OJ L 248, 16.9.2002, p. 1). 

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6. 

This  Agreement  enters  into  force  on  the  same  day  as  the  MFF  Regulation  and 
replaces  the  Interinstitutional  Agreement  of  17  May  2006  between  the  European 
Parliament,  the  Council  and  the  Commission  on  budgetary  discipline  and  sound 
financial management3. 

3 

OJ C 139, 14.5.2006, p. 1.  

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PART I – FINANCIAL FRAMEWORK and SPECIAL 
INSTRUMENTS 

A. PROVISIONS RELATED TO THE FINANCIAL FRAMEWORK 

7. 

8. 

Information relating to operations not included in the general budget of the European 
Union  and  the  foreseeable  development  of  the  various  categories  of  Union's  own 
resources is set out, by way of indication, in separate tables. This information will be 
updated annually together with the documents accompanying the draft budget. 

Except  in  sub-heading  1b  'Cohesion  for  growth  and  employment'  of  the  financial 
framework,  for  the  purposes  of  sound  financial  management,  the  institutions  will 
ensure  as  far  as  possible  during  the  budgetary  procedure  and  at  the  time  of  the 
budget's  adoption  that  sufficient  margins  are  left  available  beneath  the  ceilings  for 
the various headings. 

Updating of forecasts for payment appropriations after 2013 

9. 

In 2010, the Commission will update the forecasts for payment appropriations after 
2013.  That  update  will  take  into  account  the  real  implementation  of  budget 
appropriations for commitments and budget appropriations for payments, as well as 
the  implementation  forecasts.  It  will  also  consider  the  rules  defined  to  ensure  that 
payment  appropriations  develop  in  an  orderly  manner  compared  to  commitment 
appropriations  and  the  growth  forecasts  of  the  European  Union  Gross  National 
Income (GNI). 

B. PROVISIONS RELATED TO THE SPECIAL INSTRUMENTS NOT INCLUDED IN THE 
FINANCIAL FRAMEWORK 

B.1. Emergency Aid Reserve 

10. 

The Emergency Aid Reserve is intended to allow a rapid response to the specific aid 
requirements of third countries following events which could not be foreseen when 
the budget was established, first and foremost for humanitarian operations, but also 
for  civil  crisis  management  and  protection  where  circumstances  so  require.  The 
annual  amount  of  the  Reserve  is  fixed  at  EUR 221  million  for  the  duration  of  the 
financial framework, in 2004 prices. 

The Reserve is entered in the general budget of the European Union as a provision.  

When  the  Commission  considers  that  the  Reserve  needs  to  be  called  on,  it  will 
present to the two arms of the budgetary authority a proposal for a transfer from the 
Reserve to the corresponding budgetary lines. 

Any Commission proposal for a transfer to draw on the Reserve must, however, be 
preceded by an examination of the scope for reallocating appropriations. 

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In the case of disagreement a trilogue procedure will be initiated. 

The transfers will be made in accordance with Article 26 of the Financial Regulation. 

B.2. European Union Solidarity Fund 

11. 

The European Union Solidarity Fund is intended to allow rapid financial assistance 
in the event of major disasters occurring on the territory of a Member State or of a 
candidate country, as defined in the relevant basic act. There will be a ceiling on the 
annual amount available for the Fund of EUR 1 billion (current prices). On 1 October 
each year, at least one quarter of the annual amount will remain available in order to 
cover needs arising until the end of the year. The portion of the annual amount not 
entered in the budget may not be rolled over in the following years. 

In exceptional cases and if the remaining financial resources available in the Fund in 
the  year  of  occurrence  of  the  disaster,  as  defined  in  the  relevant  basic  act,  are  not 
sufficient  to  cover  the  amount  of  assistance  considered  necessary  by  the  budgetary 
authority, the Commission may propose that the difference be financed through the 
annual amounts available for the following year. The annual amount of the Fund to 
be budgeted in each year may not, under any circumstances, exceed EUR 1 billion. 

When the conditions for mobilising the Fund as set out in the relevant basic act are 
met,  the  Commission  will  make  a  proposal  to  deploy  it.  Where  there  is  scope  for 
reallocating  appropriations  under  the  heading  requiring  additional  expenditure,  the 
Commission  shall  take  this  into  account  when  making  the  necessary  proposal,  in 
accordance  with  the  Financial  Regulation,  by  means  of  the  appropriate  budgetary 
instrument. The decision to deploy the Fund will be taken jointly by the two arms of 
the budgetary authority in accordance with Point 3. 

In the case of disagreement a trilogue procedure will be initiated. 

B.3. Flexibility Instrument 

12. 

The  Flexibility  Instrument  with  an  annual  ceiling  of  EUR 200  million  (current 
prices)  is  intended  to  allow  the  financing,  for  a  given  financial  year  and  up  to  the 
amount  indicated,  of  clearly  identified  expenditure  which  could  not  be  financed 
within the limits of the ceilings available for one or more other headings. 

The portion of the annual amount which is not used may be carried over up to year 
n+2. If the Flexibility Instrument is mobilised, any carryovers will be drawn on first, 
in order of age. The portion of the annual amount from year n which is not used in 
year n+2 will lapse. 

The Commission will make a proposal for the Flexibility Instrument to be used after 
it  has  examined  all  possibilities  for  re-allocating  appropriations  under  the  heading 
requiring additional expenditure. 

The  proposal  will  identify  the  needs  to  be  covered  and  the  amount.  It  may  be 
presented, for any given financial year, during the budgetary procedure. 

The  decision  to  deploy  the  Flexibility  Instrument  will  be  taken  jointly  by  the  two 
arms of the budgetary authority in accordance with Point 3.  

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Agreement will be reached in the framework of the annual budgetary procedure. 

B.4. European Globalisation Adjustment Fund 

13. 

The  European  Globalisation  Adjustment  Fund  is  intended  to  provide  additional 
support for workers who suffer from the consequences of major structural changes in 
world trade patterns, to assist them with their reintegration into the labour market. 

The Fund may not exceed a maximum annual amount of EUR 500 million (current 
prices) which can be drawn from any margin existing under the global expenditure 
ceiling of the previous year, and/or from cancelled commitment appropriations from 
the  previous  two  years,  excluding  those  related  to  heading  1b  of  the  financial 
framework. 

The appropriations will be entered in the general budget of the European Union as a 
provision  through  the  normal  budgetary  procedure  as  soon  as  the  Commission  has 
identified the sufficient margins and/or cancelled commitments, in accordance with 
the second paragraph.  

When the conditions for mobilising the Fund, as set out in the relevant basic act, are 
met, the Commission will make a proposal to deploy it. The decision to deploy the 
Fund will be taken jointly by the two arms of the budgetary authority in accordance 
with Point 3. 

At  the  same  time  as  it  presents  its  proposal  for  a  decision  to  deploy  the  Fund,  the 
Commission will present to the two arms of the budgetary authority a proposal for a 
transfer  to  the  relevant  budgetary  lines.  In  the  case  of  disagreement  a  trilogue 
procedure will be initiated. 

Transfers  related  to  the  Fund  will  be  made  in  accordance  with  Article  24(4)  of  the 
Financial Regulation. 

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PART II – IMPROVEMENT OF 
INTERINSTITUTIONAL COLLABORATION DURING 
THE BUDGETARY PROCEDURE 

A. THE INTERINSTITUTIONAL COLLABORATION PROCEDURE 

14. 

The details of interinstitutional collaboration in budgetary matters are set out in the 
Annex. 

B. INCORPORATION OF FINANCIAL PROVISIONS IN LEGISLATIVE ACTS 

15. 

Each legislative act concerning a multiannual programme adopted under the ordinary 
legislative procedure will contain a provision in which the legislative authority lays 
down the financial envelope for the programme. 

That  amount  will  constitute  the  prime  reference  for  the  budgetary  authority  during 
the annual budgetary procedure. 

The  budgetary  authority  and  the  Commission,  when  it  draws  up  the  draft  budget, 
undertake not to depart by more than 5% from that amount for the entire duration of 
the programme concerned, unless new, objective, long-term circumstances arise for 
which explicit and precise reasons are given, with account being taken of the results 
obtained  from  implementing  the  programme,  in  particular  on  the  basis  of 
assessments.  Any  increase  resulting  from  such  variation  must  remain  within  the 
existing  ceiling  for  the  heading  concerned,  without  prejudice  to  the  use  of 
instruments mentioned in the MFF regulation and in this Agreement. 

This Point does not apply to appropriations for cohesion adopted under the ordinary 
legislative procedure and pre-allocated by Member States which contain a financial 
envelope for the entire duration of the programme. 

16. 

Legislative  acts  concerning  multiannual  programmes  not  subject  to  the  ordinary 
legislative procedure will not contain an 'amount deemed necessary'. 

Should  the  Council  wish  to  include  a  financial  reference,  this  will  be  taken  as 
illustrating the will of the legislative authority and will not affect the powers of the 
budgetary authority as defined by the TFEU. This provision will be mentioned in all 
legislative acts which include such a financial reference. 

If  the  amount  concerned  has  been  the  subject  of  an  agreement  pursuant  to  the 
conciliation  procedure  provided  for  in  the  Joint  Declaration  of  the  European 
Parliament, the Council and the Commission of 4 March 19754, it will be considered 
a reference amount within the meaning of Point 15 of this Agreement. 

4 

OJ C 89, 22.4.1975, p. 1. 

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C. EXPENDITURE RELATING TO FISHERIES AGREEMENTS 

17. 

The  expenditure  on  fisheries  agreements  will  be  subject  to  the  following  specific 
rules: 

The  Commission  undertakes  to  keep  the  European  Parliament  regularly  informed 
about  the  preparation  and  conduct  of  the  negotiations,  including  the  budgetary 
implications. 

In  the  course  of  the  legislative  process  relating  to  fisheries  agreements,  the 
institutions undertake to make every  effort to ensure that all procedures are carried 
out as quickly as possible. 

Amounts foreseen in the budget for new agreements or renewal of agreements which 
come into force after January 1 of the related budget year shall be put in reserve.  

If  appropriations  relating  to  fisheries  agreements  (including  the  reserve)  prove 
insufficient, the Commission will provide the budgetary authority with the necessary 
information for an exchange of views in the form of a trilogue, possibly simplified, 
on  the  causes  of  the  situation,  and  on  the  measures  which  might  be  adopted  under 
established  procedures.  Where  necessary,  the  Commission  will  propose  appropriate 
measures. 

Each  quarter,  the  Commission  will  present  to  the  budgetary  authority  detailed 
information about implementation of agreements in force and a financial forecast for 
the remainder of the year. 

D. FINANCING OF THE COMMON FOREIGN AND SECURITY POLICY (CFSP) 

18. 

As regards CFSP expenditure which is charged to the general budget of the European 
Union  in  accordance  with  Article  41  of  the  Treaty  on  European  Union,  the 
institutions  will  endeavour,  in  the  conciliation  committee,  and  on  the  basis  of  the 
draft  budget  established  by  the  Commission,  to  secure  agreement  each  year  on  the 
amount  of  the  operating  expenditure  to  be  charged  to  the  budget  of  the  European 
Union and on the distribution of this amount between the articles of the CFSP budget 
chapter suggested in the fourth paragraph of this Point. In the absence of agreement, 
it is understood that the European Parliament and the Council will enter in the budget 
the  amount  contained  in  the  previous  budget  or  the  amount  proposed  in  the  draft 
budget, whichever is the lower. 

The  total  amount  of  operating  CFSP  expenditure  will  be  distributed  between  the 
articles  of  the  CFSP  budget  chapter  as  suggested  in  the  fourth  paragraph  of  this 
Point.  Each  article  will  cover  instruments  already  adopted,  instruments  which  are 
foreseen  but  not  yet  adopted  and  all  future  -  that  is  unforeseen  -  instruments  to  be 
adopted by the Council during the financial year concerned. 

Since, under the Financial Regulation, the Commission has the authority to transfer 
appropriations  autonomously  between  articles  within  the  CFSP  budget  chapter,  the 
flexibility  deemed  necessary  for  speedy  implementation  of  CFSP  actions  will 
accordingly  be  assured.  In  the  event  of  the  amount  of  the  CFSP  budget  chapter 
during  the  financial  year  being  insufficient  to  cover  the  necessary  expenses,  the 

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European Parliament and the Council will seek a solution as a matter of urgency, on 
a proposal from the Commission, taking into account Article 2 of the MFF regulation 
and Point 10 of this Agreement. 

Within the CFSP budget chapter, the articles into which the CFSP actions are to be 
entered could read along the following lines: 

– 

– 

– 

– 

– 

crisis  management  operations,  conflict  prevention,  resolution  and 
stabilisation,  monitoring  and  implementation  of  peace  and  security 
processes, 

non-proliferation and disarmament, 

emergency measures, 

preparatory and follow-up measures, 

European Union Special Representatives. 

The amount for measures entered under the article mentioned in the third indent may 
not exceed 20 % of the overall amount of the CFSP budget chapter. 

19. 

Each  year,  the  High  Representative  of  the  Union  for  Foreign  Affairs  and  Security 
Policy will consult the European Parliament on a forward-looking document, which 
will be transmitted by June 15 for the year in question, setting out the main aspects 
and  basic  choices  of  the  CFSP,  including  the  financial  implications  for  the  general 
budget  of  the  European  Union  and  an  evaluation  of  the  measures  launched  in  the 
year n-1. Furthermore, the High Representative of the Union for Foreign Affairs and 
Security  Policy  will  keep  the  European  Parliament  informed  by  holding  joint 
consultation  meetings  at  least  five  times  a  year,  in  the  framework  of  the  regular 
political  dialogue  on  the  CFSP,  to  be  agreed  at  the  latest  in  the  Conciliation 
committee. Participation in these meetings shall be as follows: 

– 

– 

European Parliament: the bureaux of the two Committees concerned 

Council: The Chairman of the Political and Security Committee. 

The Commission will be invited to participate at these meetings. 

Whenever  the  Council  adopts  a  decision  in  the  field  of  the  CFSP  entailing 
expenditure, the High Representative of the Union for Foreign Affairs and Security 
Policy will immediately, and in any event no later than five working days following 
the final decision, send the European Parliament an estimate of the costs envisaged 
('financial statement'), in particular those regarding time-frame, staff employed, use 
of  premises  and  other  infrastructure,  transport  facilities,  training  requirements  and 
security arrangements. 

Once  a  quarter  the  Commission  will  inform  the  budgetary  authority  about  the 
implementation of CFSP actions and the financial forecasts for the remaining period 
of the year. 

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PART III – SOUND FINANCIAL MANAGEMENT OF 
EU FUNDS 

A. FINANCIAL PROGRAMMING 

20. 

The Commission will submit twice a year, the first time in May/June (together with 
the  documents  accompanying 
in 
December/January  (after  the  adoption  of  the  budget),  a  complete  financial 
programming  for  Headings 1A,  2  (for  environment  and  fisheries),  3A,  3B  and  4  of 
the  financial  framework.  This  document,  structured  by  heading,  policy  area  and 
budget line, should identify:  

the  draft  budget)  and 

the  second 

time 

(a) 

the  legislation  in  force,  with  a  distinction  being  drawn  between  multiannual 
programmes and annual actions: 

– 

– 

for  multiannual  programmes  the  Commission  should  indicate  the 
procedure  under  which  they  were  adopted  (ordinary  and  special 
legislative  procedure),  their  duration,  the  reference  amounts,  the  share 
allocated to administrative expenditure; 

for  annual  actions  (pilot  projects,  preparatory  actions,  Agencies)  and 
actions  financed  under  the  prerogatives  of  the  Commission,  the 
Commission should provide multiannual estimates and (for pilot projects 
and  preparatory  actions)  the  margins  left  under  the  authorised  ceilings 
fixed in Article 32 of the Implementing rules of the FR5; 

(b)  pending  legislative  proposals:  ongoing  Commission  proposals  referenced  by 
budget  line  (lower  level),  chapter  and  policy  area.  A  mechanism  should  be 
found  to  update  the  tables  each  time  a  new  proposal  is  adopted  in  order  to 
evaluate the financial consequences. 

the  financial 
The  Commission  should  consider  ways  of  cross-referencing 
programming with its legislative programming to provide more precise and reliable 
forecasts. For each legislative proposal, the Commission should indicate whether or 
not it is included in the May-December programme. The budgetary authority should 
in particular be informed of: 

(a) 

(b) 

all  new  legislative  acts  adopted  but  not  included  in  the  May-December 
document (with the corresponding amounts); 

all  pending  legislative  proposals  presented  but  not  included  in  the  May-
December document (with the corresponding amounts); 

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Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules 
for  the  implementation  of  Council  Regulation  (EC,  Euratom)  No  1605/2002  on  the  Financial 
Regulation applicable to the general budget of the European Communities (OJ L 357, 31.12.2002, p. 1). 

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(c) 

legislation  foreseen  in  the  Commission's  annual  legislative  work  programme 
with an indication of actions likely to have a financial impact (yes/no). 

Whenever necessary, the Commission should indicate the reprogramming entailed by 
new legislative proposals. 

B. AGENCIES AND EUROPEAN SCHOOLS 

21. 

When the Commission presents its proposal for the creation of any new agency, the 
Commission  will  assess  the  budgetary  implications  for  the  expenditure  heading 
concerned. On the basis of that information and without prejudice to the legislative 
procedures  governing  the  setting  up  of  the  agency,  the  two  arms  of  the  budgetary 
authority commit themselves, in the framework of budgetary cooperation, to arrive at 
a timely agreement on the financing of the agency. 

A similar procedure is to be applied when the creation of a new European school is 
envisaged. 

The following procedural steps will be applied: 

–  Firstly, the Commission will systematically present any proposal for setting up a 
new  agency  to  the  first  trilogue  following  the  adoption  of  its  proposal,  and  will 
present the financial statement accompanying the legal act proposing the creation 
of  the  agency  and  illustrate  its  consequences  for  the  remaining  period  of  the 
financial programming; 

–  Secondly,  taking  into  consideration  the  progress  made  in  the  legislative  process, 
and  provided  that  each  arm  of  the  budgetary  authority  is  in  a  position  to  take  a 
stance on the financial consequences of the proposal in advance of the adoption of 
the  legal  act,  the  creation  of  the  new  agency  will  be  placed  on  the  agenda  of  a 
subsequent trilogue (in urgent cases, in simplified form), in view  of reaching an 
agreement on the financing; 

–  Thirdly,  the  agreement  reached  during  a  trilogue  will  be  confirmed  in  a  joint 
declaration,  subject  to  the  approval  by  each  arm  of  the  budgetary  authority  in 
accordance with its own rules of procedure.  

C. NEW FINANCIAL INSTRUMENTS 

22. 

The institutions agree that the introduction of co-financing mechanisms is necessary 
to  reinforce  the  leverage  effect  of  the  European  Union  budget  by  increasing  the 
funding incentive. 

They  agree  to  encourage  the  development  of  appropriate  multiannual  financial 
instruments acting as catalysts for public and private investors.  

When  presenting  the  draft  budget,  the  Commission  will  report  to  the  budgetary 
authority on the activities financed by the European Investment Bank, the European 
Investment  Fund  and  the  European  Bank  for  Reconstruction  and  Development  to 
support investment in research and development, trans-European networks and small 
and medium-sized enterprises. 

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Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

For the Commission 
Member of the Commission 

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ANNEX - INTERINSTITUTIONAL COLLABORATION IN THE BUDGETARY 
SECTOR 

Part A. Calendar of the budgetary procedure 

1. 

The institutions shall follow the calendar defined in the points 2, 3, 8, 9, 11, 12 and 
14  below  for  the  various  steps  of  the  budgetary  procedure.  In  due  time  before  the 
start  of  the  budgetary  procedure,  they  can  agree  jointly,  if  needed,  on  any 
adjustments deemed appropriate to this calendar.  

Part B. Priorities for the Budget Procedure 

2. 

In  due  time  before  the  adoption  of  the  draft  budget  by  the  Commission  and  at  the 
latest  in  April,  a  meeting  of  the  trilogue  will  be  convened  to  discuss  the  possible 
priorities for the budget of the forthcoming financial year. 

Part C. Establishment of the Draft Budget and Updating of Estimates 

3. 

4. 

5. 

6. 

7. 

The Commission will adopt the draft budget in the last week of April or at the latest 
during the first week of May. 

The Commission will present each year a draft budget showing the European Union's 
actual financing requirements. 

It will take into account: 

a) 

b) 

c) 

forecasts in relation to the Structural Funds provided by the Member States, 

the  capacity  for  utilising  appropriations,  endeavouring  to  maintain  a  strict 
relationship  between  appropriations  for  commitments  and  appropriations  for 
payments, 

the possibilities for starting up new policies through pilot projects and/or new 
preparatory actions or continuing multiannual actions which are coming to an 
end, after assessing whether it will be possible to secure a basic act, within the 
meaning  of  Article  49  of  the  Financial  Regulation  (definition  of  a  basic  act, 
necessity of a basic act for implementation and exceptions), 

d) 

the  need  to  ensure  that  any  change  in  expenditure  in  relation  to  the  previous 
year is in accordance with the constraints of budgetary discipline. 

The institutions will, as far as possible, avoid entering items in the budget involving 
insignificant amounts of expenditure on operations.  

The  two  arms  of  the  budgetary  authority  also  undertake  to  bear  in  mind  the 
assessment of the possibilities for implementing the budget made by the Commission 
in its drafts and in connection with implementation of the current budget. 

In the interest of sound financial management and owing to the effect of the major 
changes  in  the  budget  nomenclature  in  the  titles  and  chapters  on  the  management 
reporting  responsibilities  of  Commission  departments,  the  two  arms  of  the  budget 

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authority  undertake  to  discuss  any  major  changes  with  the  Commission  during  the 
conciliation. 

8. 

Until such time as the Conciliation Committee is convened, the Commission may, if 
necessary, amend the draft budget in accordance with Article 314(2) TFEU including 
by  an  amending  letter  updating  expenditure  estimates  for  agriculture.  The 
Commission  will  submit  information  on  updates  to  the  two  arms  of  the  budget 
authority  for  their  consideration  as  soon  as  they  are  available.  It  will  supply  the 
budgetary authority with all the duly justified reasons it may require. 

Part D. Budgetary procedure before the Conciliation 

9. 

10. 

11. 

12. 

A  trilogue  meeting  will  be  convened  in  good  time  before  the  Council’s  reading  to 
allow the institutions to have an exchange of views on the draft budget. 

In order for the Commission to be able to assess in due time the implementability of 
amendments  envisaged  by  the  budgetary  authority  which  create  new  preparatory 
actions/pilot projects or prolong existing ones, both arms of the budgetary authority 
will inform the Commission by mid-June of their intentions in this regard, so that a 
first discussion may already take place at this trilogue. 

The Council completes its reading by the end of July at the latest. 

The European Parliament's Committee on Budgets (COBU) votes on its reading by 
the  end  of  September  or  early  October  at  the  latest  and  the  European  Parliament's 
Plenary votes on its reading mid October. 

Part E. Conciliation process 

13. 

14. 

15. 

16. 

17. 

If the European Parliament adopts amendments the Conciliation Committee shall be 
convened  by  the  President  of  the  European  Parliament,  with  the  agreement  of  the 
President  of  the  Council  and  with  due  regard  to  the  provisions  of  the  FFEU.  The 
convening  of  the  Conciliation  Committee  should  be  signed  and  transmitted  at  the 
same time as the plenary session vote on the budget. 

The  institutions  cooperate  closely  with  a  view  to  completing  the  work  of  the 
Conciliation Committee within 21 days by mid-November. 

In order to prepare for an agreement on a joint text by the Conciliation Committee, 
the  necessary  documentation  is  exchanged  between  the  institutions  as  soon  as 
possible. 

A technical preparatory meeting could be organised before the vote of the European 
Parliament in order to define the organisation of the work. 

The  Conciliation  Committee  shall  be  chaired  jointly  by  representatives  of  the 
European Parliament and of the Council. Committee meetings shall be chaired by the 
co-chair  of  the  institution  hosting  the  meeting.  Each  institution,  in  accordance  with 
its own rules of procedure, will designate its participants for each meeting and define 
its mandate for the negotiations. 

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18. 

19. 

20. 

21. 

22. 

23. 

24. 

25. 

26. 

27. 

In  accordance  with  Article  314(5)  TFEU,  second  subparagraph,  the  Commission 
shall  take  part  in  the  conciliation  proceedings  and  shall  take  all  the  necessary 
initiatives  with  a  view  to  reconciling  the  positions  of  the  European  Parliament  and 
the Council.  

The  dates  and  the  agendas  for  the  Conciliation  Committee's  meetings  shall  be  set 
jointly by the co-chairs with a view to the effective functioning of the Conciliation 
Committee  throughout  the  conciliation  procedure.  The  Commission  shall  be 
consulted on the dates envisaged. 

Trilogues shall take place throughout the conciliation procedure, at different levels of 
representation, with the aim of resolving outstanding issues and preparing the ground 
for an agreement to be reached in the Conciliation Committee. 

The  meeting  of  the  Conciliation  Committee  and  of  the  trilogues  will  be  held 
alternately at the premises of the European Parliament and the Council, with a view 
to an equal sharing of facilities, including interpretation facilities. 

The  Secretariat  of  the  European  Parliament  and  the  General-  Secretariat  of  the 
Council shall act as the Conciliation Committee's secretariat, in association with the 
Directorate-General for Budget of the Commission, on the basis of a clear and prior 
definition of the tasks between the three institutions. 

The Conciliation Committee shall have available to it the Commission draft budget, 
the Council's position and the European Parliament's amendments. Additionally, the 
Commission  will  present  its  opinion  on  the  executability  of  the  Council's  position 
and of the European Parliament's amendments and possibly its information note on 
budget implementation. 

Agreement  on  a  joint  text  shall  be  established  at  a  meeting  of  the  Conciliation 
Committee or, subsequently, by an exchange of letters between the co-chairs. Copies 
of such letters shall be forwarded to the Commission. 

Each arm of the budgetary authority will take whatever steps are required to ensure 
that  the  results  which  may  be  secured  in  the  conciliation  process  are  respected 
throughout the budgetary procedure in accordance with the provisions of the TFEU. 

The  institutions  will  endeavour  to  hold  a  joint  press  conference  to  announce  the 
successful outcome of the conciliation. They will also endeavour to issue joint press 
releases. 

Once  the  Conciliation  Committee  has  agreed  a  joint  text,  the  European  Parliament 
and  the  Council  will  endeavour  to  approve  the  outcome  of  the  Conciliation 
Committee  as  soon  as  possible  within  the  framework  of  Article  314(6)  TFEU,  in 
accordance with their respective internal rules of procedures. 

Part F. Amending Budgets 

General principles 

28. 

Having  in  mind  that  amending  budgets  are  frequently  focused  on  specific  and 
sometimes  urgent  issues,  the  institutions  agree  on  the  principles  below  to  ensure 

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appropriate  interinstitutional  cooperation  for  a  smooth  and  swift  adoption  of  the 
amending  budgets  while  avoiding,  as  far  as  possible,  to  have  to  convene  a 
conciliation meeting for amending budgets.  

29. 

As far as possible, the institutions will endeavour  to  limit  the  number  of  amending 
budgets. 

Calendar 

30. 

31. 

32. 

The Commission will inform in advance the two arms of the budgetary authority of 
the  possible  dates  of  adoption  of  draft  amending  budgets  without  prejudice  to  the 
final date of adoption. 

In  accordance  with  its  internal  rules  of  procedure,  each  arm  of  the  budgetary 
authority  will  endeavour  to  examine  the  draft  amending  budget  proposed  by  the 
Commission at an early opportunity after adoption by the Commission. 

In  order  to  speed  up  the  procedure,  the  two  arms  of  the  budgetary  authority  will 
ensure  that  their  respective  calendars  of  work  are  coordinated  as  far  as  possible  in 
order  to  enable  proceedings  to  be  conducted  in  a  coherent  and  convergent  fashion. 
They will therefore seek as soon as possible to establish an indicative timetable for 
the various stages leading to the final adoption of the amending budget. 

The two arms of the budgetary authority will take into account the relative urgency 
of the amending budget and the need to approve it in due time to be effective during 
the year concerned. 

Cooperation during the reading of each arm of the Budgetary Authority 

33. 

The  institutions  will  cooperate  in  good  faith  throughout  the  procedure  clearing  the 
way, as far as possible, for the adoption of amending budgets at an early stage of the 
procedure. 

When  appropriate  and  when  there  is  a  potential  divergence,  each  arm  of  the 
budgetary authority, before taking its final position on the amending budget, or the 
Commission, may propose to convene a specific trilogue, to discuss the divergences 
and to try to reach a compromise. 

34. 

35. 

All  draft  amending  budgets  proposed  by  the  Commission  and  not  yet  finally 
approved will be systematically on the agenda of the trilogues planned for the annual 
budgetary procedure. The Commission will present the draft amending budgets and 
the two arms of the budgetary authority will, as far as possible, notify their respective 
position ahead of the trilogue.  

If  a  compromise  is  reached  during  a  trilogue,  each  arm  of  the  budgetary  authority 
undertakes to consider the results of the trilogue when deliberating on the amending 
budget in accordance with the Treaty and its internal rules of procedure. 

Cooperation after the reading of each arm of the budgetary authority 

36. 

If  the  European  Parliament  approves  without  amendments  the  position  of  the 
Council, the amending budget shall be adopted. 

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37. 

If  the  European  Parliament  adopts  amendments  by  a  majority  of  its  component 
members,  Article  314(4)(c)  TFEU  apply.  However,  before  the  Conciliation 
Committee meets a trilogue will be called. 

– 

– 

If an agreement is reached during the trilogue and subject to the agreement of 
each  arm  of  the  budgetary  authority  on  the  results  of  the  trilogue,  the 
conciliation will be closed by an exchange of letters without a meeting of the 
Conciliation Committee. 

If  no  agreement  is  reached  during  the  trilogue,  the  Conciliation  Committee 
shall meet and organise its work in accordance with the circumstances, with a 
view of completing as much as possible the decision-making process before the 
twenty-one-day deadline laid down in Article 314(6) TFEU. The Conciliation 
Committee may conclude by an exchange of letters. 

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