Draft amending budget n° 6 to the general budget 2010 - Statement of revenue and expenditure by section - Statement of revenue and expenditure by section - Section II –European Council and Council - Section III - Commission - Section X – European External Action Service
Date: 2010-06-17
Institutions: Directorate-General for Budget, European Commission
Subjects: amending budget, common foreign and security policy, diplomatic representation, draft budget (EU), general budget (EU), operation of the Institutions

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EUROPEAN COMMISSION 

Brussels, 17.6.2010 
COM(2010) 315 final 

DRAFT AMENDING BUDGET N° 6 
TO THE GENERAL BUDGET 2010 

STATEMENT OF REVENUE AND EXPENDITURE BY SECTION 
STATEMENT OF REVENUE AND EXPENDITURE BY SECTION 
Section II –European Council and Council 
Section III - Commission 
Section X – European External Action Service 

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DRAFT AMENDING BUDGET N° 6 
TO THE GENERAL BUDGET 2010 

STATEMENT OF REVENUE AND EXPENDITURE BY SECTION 
STATEMENT OF REVENUE AND EXPENDITURE BY SECTION 
Section II –European Council and Council 
Section III - Commission 
Section X – European External Action Service 

Having regard to: 

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the Treaty of the European Union and in particular Article 27 thereof, 

the Treaty on the Functioning of the European Union, and in particular Article 314 
thereof,  in  conjunction  with  the  Treaty  establishing  the  European  Atomic  Energy 
Community, and in particular Article 106a 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, 
and in particular Article 37 thereof, 

the European Commission proposal of 24 March 2010 modifying Council Regulation 
No 1605/2022, 

the  general  budget  of  the  European  Union  for  the  financial  year  2010  adopted  on 
17 December 2009, 

the amending budget 1/2010 adopted on 19 May 2010, 

the draft amending budgets No 2/20103, 3/20104, 4/20105, and 5/20106. 

The  European  Commission  hereby  presents  to  the  budgetary  authority  the  Draft  Amending 
Budget No 6 to the 2010 budget for the reasons set out in the explanatory memorandum. 

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OJ L 248, 16.9.2002, p. 1. 
COM(2010) 85. 
COM(2010) 108. 
COM(2010) 149. 
COM(2010) 169. 
COM(2010) 320. 

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CHANGES  TO  THE  STATEMENT  OF  REVENUE  AND  EXPENDITURE  BY 
SECTION 

The  changes  to  the  statement  of  revenue  and  expenditure  by  section  are  available  on  EUR-
Lex (http://eur-lex.europa.eu/budget/www/index-en.htm). An English version of the changes 
to these statements by section is attached for information as a budgetary annex. 

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1. 

FRAMEWORK 

1.1. 

An External Action Service for a secure Europe in a changing world 

1.1.1.  The Treaty of the European Union (TEU) provides that the High Representative of 
the Union for Foreign Affairs and Security Policy chairs the Foreign Affairs Council, 
contributes  through  her  proposal  towards  the  preparations  of  the  Common  Foreign 
and Security Policy (CFSP) and ensures the implementation of the decisions adopted 
by  the  European  Council  and  the  Council.  The  High  Representative  represents  the 
Union in matters related to the CFSP, conducts the dialogue with third parties on the 
Union's behalf and expresses the Union's position in international organisations and 
international conferences. 

1.1.2. 

In  fulfilling  her  mandate,  the  High  Representative  shall  be  assisted  by  a  European 
External Action Service (hereinafter EEAS) as stipulated by the Treaty of the EU. 

1.1.3.  An  effective  EEAS  is  critical  to  allowing  the  EU  to  accomplish  the  strategic 
objectives set by the Lisbon Treaty and to contribute to strengthening its role on the 
global stage, giving it more profile, and enabling it to project its interests and values 
more efficiently. 

1.1.4.  The added value that the EEAS can bring to the complex challenges and threats the 
EU is facing is its ability to combine the instruments available. A service drawing on 
the  valuable  expertise  of  the  European  Commission  services,  of  services  of  the 
General Secretariat of the Council and on the experience of the diplomatic service of 
EU Member States.  

technical  proposal,  reflecting 

1.1.5.  Within this framework the European Commission is presenting this amending budget 
as  a 
the  High 
Representative and, within the framework of the draft Council's Decision, that in the 
last  quarter  2010  diplomats  from  the  EU  Member  States  are  to  be  recruited  to  the 
EEAS, under the EU budget (temporary agents).  

transmitted  by 

the  requests 

1.2. 

An efficient organisational structure within a context of fiscal consolidation 

1.2.1.  The guidelines laid down by the European Council of 29 and 30 October 2009 on the 

establishment of the EEAS foresee the following (point 16): 

"The  EEAS…  should  have  autonomy  in  terms  of  administrative  budget  and 
management of staff. The EEAS should be brought within the scope of Article 1 of the 
financial regulation."  

The  European  Commission  has,  therefore,  presented  to  the  two  arms  of  the 
legislative authority a proposal for the revision of the financial regulation (COM …) 
and  has  adopted  on  9  June  2010  the  proposal  for  the  modification  of  the  Staff 
Regulation (COM(2010) 85). This draft amending budget is the third piece of a set of 
modifications necessary to implement the Council Decision establishing the EEAS. 

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1.2.2.  On 25 March, 2010 the High Representative (HR) presented a draft Council decision 
establishing  the  organisation  and  functioning  of  the  European  External  Action 
Service. 

1.2.3.  The establishment of the EEAS has to be guided by the principles of cost-efficiency, 

budget neutrality, and sound and efficient management.  

The  creation  and  establishment  of  the  EEAS  will  have  to  take  into  account  the 
impact of the economic crisis in public finances and the need for fiscal consolidation 
policies,  implying  self-restraining  measures  in  terms  of  human  resources  including 
recruitments and contracts. 

1.2.4.  Transitional  arrangements  and  gradual  build-up  of  capacity  will  have  to  be  used  in 
the  setting  up  of  this  service.  In  terms  of  sound  and  efficient  management, 
unnecessary  duplication  of  tasks,  functions  and  resources  with  other  structures  will 
have to be avoided, using all opportunities for rationalisation and streamlining.  

1.2.5.  The departments and functions of the relevant services of the General Secretariat of 
the Council and of the Commission will therefore be transferred to the EEAS. They 
are  listed  in  the  Annex  to  the  draft  Council  Decision.  Upon  their  transfer  to  the 
EEAS,  each  official  will  be  assigned  to  a  post  in  the  function  group  which 
corresponds to his/her grade.  

1.2.6. 

In  addition,  the  EEAS  will  be  staffed  with  some  diplomats  from  Member  States 
(temporary agents). When the EEAS will reach its full capacity in 2013, staff from 
Member States is expected to represent one third of all EEAS staff at AD level.  

1.2.7.  The  EEAS  will  therefore  start  in  2010  with  a  structure  that,  while  capable  of 
supporting  the  High  Representative  to  fulfil  her  tasks,  also  reflects  the  current 
constraints  with  regard  to  administrative  expenditure  (heading  5)  and  takes  into 
account the context of fiscal consolidation. 

1.3. 

Immediate additional personnel requirements for 2010 

1.3.1.  The EEAS should be up and running as soon as possible. The merging of the services 
of the Commission and General Secretariat of the Council transferred to the EEAS is 
expected  to  create  synergies  and  efficiency  gains  at  headquarters.  Those  efficiency 
gains  will  also  be  used  to  cover  at  least  part  of  the  EEAS'  priority  needs  and 
additional tasks. 

1.3.2.  However the additional tasks of the Presidency of Working Groups and Committees 
which prepare the Foreign Affairs Council – tasks that neither GSC nor Commission 
services were previously fulfilling – and the need to equip the EEAS with posts for 
the Corporate and Policy Boards have to be taken into account. 

The  headquarters  should  therefore  be  reinforced  with  20  new  AD  posts  to 
accommodate  the  creation  of  new  management  posts,  allow  the  creation  of  a  small 
legal cell, and to cover additional tasks in relation to the presidency of geographical 
and thematic Working Groups. The first priority of the High Representative will be 
to make provisions for the early appointment of the top management posts in the new 

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structure. In addition, appropriations are requested for 10 contract agents for support 
tasks at headquarters. 

1.3.3.  The Union Delegations constitute an integral part of the EEAS. Since 1 January 2010 
more than 60 EU Delegations have taken up the role of the local Presidency, i.e. the 
tasks  of  representation,  co-ordination  and  negotiation  on  behalf  of  the  EU.  In  such 
cases they need to be reinforced in order to fully carry out their new duties. 

The most urgent additional needs for EU Delegations require 80 new AD posts to be 
gradually recruited over the last quarter of 2010 and were assessed as follows: 

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Reinforcement of delegations where there is no political officer in place some 
40 new AD posts; 

Reinforcement of multi-lateral delegations some 20 new AD posts; 

Upgrading  of  regionalised  delegations  and  creation  of  Deputy  Head  of 
Delegation functions some 20 new AD posts; 

Additional appropriations for 60 local agents to provide necessary support. 

2. 

THE PROCEDURE FOR THE ESTABLISHMENT OF A BUDGET FOR THE EEAS 

2.1. 

Article 12.5 of the draft Council Decision on the organisation and functioning of the 
EEAS stipulates: "At the latest one month after the entry into force of this Decision, 
the High Representative shall submit to the Commission an estimate of the revenue 
and  expenditure  of  the  EEAS,  including  an  establishment  plan,  in  order  for  it  to 
present a draft amending budget." 

2.2. 

Under  normal  circumstances  an  amending  budget  establishing  a  new  entity  with  a 
separate section in the budget would include the following: 

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an establishment plan, 

the related appropriations to cover salaries of officials, infrastructure and other 
running cost, 

appropriations  for  other  types  of  personnel  (including  salaries,  infrastructure 
and other running cost), 

other administrative expenditure (like IT, security, missions, etc.). 

2.3. 

2.4. 

In order to allow the EEAS to function autonomously it is important that its budget is 
established as quickly as possible. This will also have to be done while ensuring the 
smooth functioning and business continuity of the activities. 

Most of the means for the future operation of the EEAS will be transferred from the 
institutions  (Commission  and  Council)  which  have  been  responsible  until  now  for 
most of the tasks to be performed in the future by the EEAS. This implies that this 
budget proposal for the EEAS also modifies the budgets of these institutions.  

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In  the  absence  of  a  fully  operational  budget  and  administrative  capability  in  the 
EEAS,  this  amending  budget  proposal  has  been  elaborated  in  close  cooperation 
between the two donor institutions involved and the HR. 

2.5. 

In  principle  the  budget  of  the  EEAS  should  give  a  view  of  the  full  cost  of  its 
functioning. 

Nevertheless,  the  European  Council  recognised  the  challenges  for  the  set-up  of  the 
new  institution  and  concluded  explicitly  in  article  27  of  the  guidelines  of  October 
2009:  "transitional  arrangements  and  gradual  build-up  of  capacity  will  have  to  be 
used" 

The following aspects have been identified as the major difficulties to establish from 
the start the EEAS budget in 2010: 

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Given the need to merge separate parts of existing administrations into a new 
separate  one,  the  EEAS  will  not  have  its  own  capacity  from  day  one  to 
implement its obligations, 

In the current phase of the setup of the EEAS there is no complete view yet on 
the working methods and the final organisational structure, 

The  unwinding  and  transfer  of  contractual  and  financial  obligations  from  the 
donor-institutions  to  the  EEAS  is  a  delicate  process  which  requires  careful 
preparation and implementation, 

The appropriations to be transferred have to be accurately calculated according 
to  a specific date when  the  amended  budget is expected to be adopted. If the 
amending  budget  is  adopted  at  a  different  date,  there  is  the  risk  that 
appropriations will not be available in the budget of the 'right' institution which 
will need them, notably for salaries and all sorts of contractual obligations, 

The  transfer  of  financial  obligations  and  resources  in  the  course  of  a  running 
budgetary year, rather than at the beginning of the budget year, is a hazardous 
operation from an accounting viewpoint. 

In conclusion, there could be a serious and real risk of major disruption of operations 
(including  payments  of  salaries  and  other  obligations),  at  headquarters  and  in 
delegations, which would be prejudicial for the reputation of the newborn EEAS. 

2.6. 

The proposed solution for 2010 consists in an amending budget based on a pragmatic 
and simplified approach during the transitional period covering the last quarter of the 
year, and assuming the amending budget will be adopted by October 1, 2010. Thus, 
the proposed amending budget reflects the following: 

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The  creation  of  the  EEAS'  separate  budget  section  and  establishment  plan  in 
line with the European Commission proposal for modification of the Financial 
Regulation.  

The posts to be transferred from the Commission and the General Secretariat of 
the Council will continue to remain, though identified in separate columns, in 
the establishment plans in corresponding sections of the two donor institutions, 

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to ensure continuity of administrative and contractual obligations till the end of 
the year. Those EEAS posts will be removed from the establishment plans of 
the Commission and the General Secretariat of the Council in the 2011 budget 
(amending letter to be presented later this year).  

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– 

A first tranche of new AD posts to cope the immediate additional tasks. This 
will also contribute to reach in 2013 the commitment to have one third of AD 
staff coming from the diplomatic service of the Member States. 

All  appropriations,  including  the  requested  additional  appropriations  for  new 
EEAS  posts,  will  be  included  in  the  corresponding  budget  items  of  the 
Commission and the General Secretariat of the Council, which allows them to 
provide  all  payments  (salaries,  allowances,  rents,  etc.)  and  services  (IT, 
maintenance, canteens, etc.) to the future EEAS staff till the end of the year. 

In  this  way,  business  continuity  at  headquarters  and  delegations  can  be  guaranteed 
during the transitional period till the end of the year. 

The  High  Representative  will  be  able  to  concentrate  on  and  supervise  the  EEAS 
internal  organisation,  recruitment  procedures7,  and  the  build  up  of  its  full 
administrative  and  financial  management  capacity  so  that  the  EEAS  can  take  over 
full responsibility and related administrative, financial and contractual obligations as 
from January 1, 2011. 

2.7. 

The objective for the financial year 2011 is that the EEAS would have its own full 
budget  for  2011  including  all  related  appropriations.  That  will  require  a  letter  of 
amendment  to  the  2011  draft  budget  in  due  time  for  being  integrated  in  the  annual 
budgetary process. 

3. 

THE AMENDING BUDGET FOR THE EEAS IN 2010 

3.1. 

Budget structure 

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A new section X "European External Action Service" is created in the budget 
of the European Union. 

A  budgetary  structure  to  cover  the  EEAS  administrative  expenditure  is 
established. The structure is inspired by the structure used by other institutions 
(title 1 staff, title 2 operating expenditure, title 3 delegations). 

3.2. 

Establishment plan 

The two donor institutions have identified the number of establishment posts related 
to  the  transfer  of  the  services  as  defined  in  the  Council  Decision:  1114  posts  are 
transferred  to  the  EEAS  from  the  establishment  plan  of  the  Commission,  and  411 

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Any recruitments until 1.1.2011 would be formally in the name of the Commission. The Commission 
will  however,  fully  delegate  the  relevant  Appointing  Authority/Contracting  Authority  powers  to  the 
High  Representative  in  her  function  as  Vice  President  of  the  Commission  with  a  view  to  giving  her 
exclusive authority over the selection process. 

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posts  (including  43  posts  for  the  support  functions)  from  the  establishment  plan  of 
the General Secretariat of the Council. 

In addition, 100 new posts are requested for the EEAS (of which 20 at headquarters 
and  80  in  delegations,  the  latter  ones  gradually  over  the  last  quarter  of  2010 
respectively 50% in October and in November). The summary table below provides 
the  breakdown  of  the  EEAS  posts  by  origin  and  distinguishing  headquarters  from 
delegations. Posts in the table below include posts with the staff to be transferred as 
well as vacant posts. 

Table 1: Establishment plan posts transferred from donor institutions and new posts created in 2010 

Commission 

Council 

New posts 

Headquarters 

Delegations 

675 

439 

Total 

1 114 

387 

24 

411 

20 

80 

100 

Total 

1 082 

543  

1 625 

The revised establishment plans are included in the budgetary annex. 

3.3. 

Other human resources (not covered by the establishment plan) 

Appropriations related to other human resources (seconded national experts, contract 
agents,  local  agents  in  delegations)  to  be  transferred  but  not  covered  by  the 
establishment  plan  continue  in  2010  to  be  financed  from  the  budget  of  the  donor 
institution. 

This amending budget includes the request of additional appropriations for the EEAS 
corresponding  to  10  contract  agents  at  headquarters  and  60  local  agents  in 
delegations. Since no appropriations are put in the EEAS budget (see paragraph 2.6), 
the  corresponding  appropriations  are  inscribed  in  the  Commission's  section  of  the 
budget.  

3.4. 

Other administrative expenditure 

No appropriations for other administrative expenditure (rent, mission expenditure, IT 
etc)  will  be  transferred  from  the  donor  institutions  to  the  EEAS  in  2010.  They  are 
included in the relevant section of the Commission and the General Secretariat of the 
Council. 

4. 

CONCLUSION 

In  view  of  the  establishment  of  the  EEAS,  this  amending  budget  proposes  in  line 
with  the  European  Commission  proposal  on  the  modification  of  the  financial 
regulation the creation of a new Section X (European External Action Service) and 
the  related  amendments  to  budget  Section  II  (European  Council  and  Council)  and 
Section III (Commission), as indicated in the budgetary annex. 

A new establishment plan is created in Section X for the EEAS. It includes 411 posts 
transferred to EEAS from Section II (European Council and Council) and 1 114 posts 

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transferred from Section III (Commission). It also includes 100  additional new AD 
posts for the EEAS, of which 80 in delegations. 

The  additional  expenditure  is  necessary  to  cover  the  100  new  posts  and  additional 
appropriations for 60 additional local agents in delegations and 10 contract agents at 
headquarters  requested  by  the  High  Representative,  in  order  to  fulfil  the  additional 
tasks conferred by the Treaty. These additional posts will already contribute in 2010 
to the Council's decisions to have in 2013 in the EEAS, one third of AD staff coming 
from the diplomatic services of the EU Member States.  

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5. 

SUMMARY TABLE BY HEADING OF THE FINANCIAL FRAMEWORK 

Financial framework 
Heading/subheading 

2010 Financial framework 

Budget 2010 
(including AB 1 and DAB 2 to 
DAB5) 

DAB 6/2010 

Budget 2010 
(including AB 1 and DAB 2 to 
DAB6) 

CA 

PA 

CA 

PA 

CA 

PA 

CA 

PA 

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

Total 
Margin8 

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 

Total 
Margin 

Total 
Margin9   

4. EU AS A GLOBAL PLAYER10 

5. ADMINISTRATION11 

Margin 

Margin 
TOTAL 

Margin   

14 167 000 000

49 388 000 000
63 555 000 000

47 146 000 000

59 955 000 000

1 025 000 000
668 000 000
1 693 000 000

7 893 000 000

7 882 000 000

140 978 000 000

134 289 000 000

14 861 853 253

11 342 270 803

14 861 853 253

11 342 270 803 

49 387 592 092
64 249 445 345

-194 445 345  

36 384 885 000
47 727 155 803

49 387 592 092
64 249 445 345

36 384 885 000 
47 727 155 803 

-194 445 345  

43 819 801 768

43 701 207 586

43 819 801 768

43 701 207 586 

59 498 833 302

58 135 640 809

456 166 698  

59 498 833 302

58 135 640 809 

456 166 698  

1 006 487 370
668 000 000
1 674 487 370

18 512 630  

8 160 182 000
-18 300 000
7 908 983 423
53 016 577
141 491 931 440
528 250 560

738 570 370
659 387 500
1 397 957 870

7 787 695 183

7 908 478 423

9 521 362

9 521 362

122 956 928 088
11 660 953 912

1 006 487 370
668 000 000
1 674 487 370

18 512 630  

8 160 182 000
-18 300 000
7 918 504 785
43 495 215
141 501 452 802
518 729 198

738 570 370 
659 387 500 
1 397 957 870 

7 787 695 183 

7 917 999 785 

122 966 449 450 
11 651 432 550 

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The European Globalisation adjustment Fund (EGF) is not included in the calculation of the margin under Heading 1a (EUR 500 million). EUR 195 million above the ceiling 
is financed by the mobilisation of the Flexibility Instrument. 
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 2010 margin for heading 4 does not take into account the appropriations related to the Emergency Aid Reserve (EUR 248,9 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 80 million for the 
staff contributions to the pension scheme. 

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