DRAFT AMENDING BUDGET N° 7  TO THE GENERAL BUDGET 2010 STATEMENT OF EXPENDITURE BY SECTION Section III - Commission
Date: 2010-07-12
Institutions: Directorate-General for Budget, European Commission
Subjects: amending budget, draft budget (EU), economic stabilisation, financial aid, general budget (EU), loan

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EUROPEAN COMMISSION 

Brussels, 12.7.2010 
COM(2010)383 final 

DRAFT AMENDING BUDGET N° 7  
TO THE GENERAL BUDGET 2010 

STATEMENT OF EXPENDITURE BY SECTION 
Section III - Commission 

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DRAFT AMENDING BUDGET N° 7  
TO THE GENERAL BUDGET 2010 

STATEMENT OF EXPENDITURE BY SECTION 
Section III - Commission 

Having regard to: 

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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  general  budget  of  the  European  Union  for  the  financial  year  2010  adopted  on 
17 December 20092, 

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

the amending budget 2/2010 adopted on 16 June 2010, 

the draft amending budgets No 2/20103, 3/20104, 5/20105, and 6/20106. 

The  European  Commission  hereby  presents  to  the  budgetary  authority  the  Draft  Amending 
Budget No 7 to the 2010 budget. 

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OJ L 248, 16.9.2002, p. 1. 
OJ L 64, 12.3.2010. 
COM(2010) 108 
COM(2010) 149 
COM(2010) 169 
COM(2010) 315 

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CHANGES TO THE GENERAL STATEMENT OF REVENUE 

The  changes  to  the  general  statement  of  revenue  and  to  the  statement  of  revenue  and 
expenditure 
(http://eur-
lex.europa.eu/budget/www/index-en.htm). An English version of the changes to this statement 
is attached for information as a budgetary annex. 

EUR-Lex 

available 

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EXPLANATORY MEMORANDUM 

1. 

INTRODUCTION 

Draft Amending Budget (DAB) No 7 for the year 2010 covers the creation of a new budget 
item  01 04 01 03  for  the  guarantee  provided  by  the  European  Union  in  accordance  with  the 
provisions of Article 122(2) of the Treaty on the Functioning of the European Union (TFEU) 
and, correspondingly, a new article 802 on the revenue side. A token entry (p.m.) is proposed 
for commitment and payment appropriations as well as revenue at this time. If necessary, the 
Commission will propose to make available the appropriations needed by means of a transfer 
or an amending budget. 

DAB 7/2010 has no financial consequences. 

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FINANCIAL STABILITY 

On 9th May 2010, the Council decided on a comprehensive package of measures to preserve 
financial  stability  in  Europe,  including  a  European  Financial  Stabilisation  mechanism  based 
on Article 122(2) of the TFEU. This Article foresees financial support for Member States in 
difficulties caused by exceptional circumstances beyond Member States’ control. 

The mechanism will operate without prejudice to the existing facility providing medium term 
financial assistance for non euro area Member States' balance of payments. 

To grant this financial assistance the Commission will borrow on the capital markets or with 
financial  institutions  on  behalf  of  the  European  Union.  In  order  to  honour  its  obligations 
should the debtors default, the Commission may draw on its cash resources to service the debt 
provisionally. Article 12 of Council Regulation (EC, Euratom) No 1150/2000 of 22 May 2000 
implementing  Decision  2000/597/EC,  Euratom  on  the  system  of  the  Communities’  own 
resources shall apply. Subsequently, it may be necessary to budget the operation. 

Reimbursements  after  an  initial  default  or  any  other  revenue  arising  from  the  exercise  of 
rights in connection with the guarantee may also need to be budgeted as revenue. 

It  is  therefore  proposed  to  create  a  new  budget  item  on  the  expenditure  side  and  a 
corresponding new budget article on the revenue side as the budget structure for the guarantee 
provided by the European Union. 

As it is of use for budgetary items linked to lending operations without a specific guarantee 
fund,  the  new  item  01 04 01 03  and  new  article  8 0 2  will  receive  a  token  entry  (p.m.).  If 
necessary,  the  Commission  will  propose  to  make  available  the  appropriations  needed  by 
means of a transfer or an amending budget. 

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