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, to address additional financing needs of the ITER project
Date: 2011-04-20
Institutions: European Commission
Subjects: Community budget, energy policy, financial management, nuclear fusion, nuclear research

EUROPEAN COMMISSION 

Brussels, 20.4.2011 
COM(2011) 226 final 

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, to 
address additional financing needs of the ITER project 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

INTRODUCTION 

the  European  Parliament  and  of 

The  present  proposal  replaces  the  Commission's  proposal  of  20  July  2010  for  a 
decision  of 
the 
Interinstitutional  Agreement  of  17  May  2006  on  budgetary  discipline  and  sound 
financial  management  as  regards  the  multiannual  financial  framework,  to  address 
additional financing needs of the ITER project1. 

the  Council  amending 

The  proposal  takes  progress  made  so  far  in  negotiations  into  account,  notably  with 
regard  to  the  level  of  redeployment  within  Heading  1A  and  the  amounts  for 
additional  commitment  and  payment  appropriations  required  for  ITER  under 
Heading  1A  in  2012  and  2013.  It  aims  at  facilitating  a  rapid  agreement  by  the 
budgetary authority with a view to securing the success of the ITER project. 

The  proposal  is  fully  consistent  with  the  Draft  Budget  2012,  as  well  as  with  the 
Commission's  proposal  for  a  Council  Decision  concerning 
the  framework 
programme  of  the  European  Atomic  Energy  Community  for  nuclear  research  and 
training  activities  (2012-2013)2.  Final  adoption  of  the  Euratom  Framework 
Programme  by  the  Council  will  be  conditional  upon  a  positive  outcome  of  the 
parallel budgetary procedure to provide additional funds for ITER. 

2. 

USE OF MARGINS AND REDEPLOYMENT WITHIN HEADING 1A 

No  margin  is  left  for  2011  under  the  expenditure  ceiling  of  Heading  1A,  and  the 
margins available in 2012 and 2013 are insufficient to meet the ITER requirements 
and to leave, at the same time, sufficient margins for unforeseen needs as provided 
for  in  Point  13  of  the  Interinstitutional  Agreement  of  17  May  2006  on  budgetary 
discipline and sound financial management (IIA)3.  

In  accordance  with  Point  23,  first  paragraph,  of  the  IIA  the  Commission  has 
examined the scope for reallocating expenditure between the programmes covered by 
Heading 1A with the objective that a significant amount, in absolute terms and as a 
percentage  of  the  new  expenditure  planned,  is  made  available  within  the  existing 
ceiling for this Heading. As a result, it proposes to redeploy an amount of EUR 100 
million  in  2012  and  of  EUR  360  million  in  2013  from  the  Seventh  Research 
Framework Programme.  

1 
2 
3 

COM(2010) 403 final of 20.7.2010.  
COM(2011) 72 final of 7.3.2011. 
OJ C 139, 14.6.2006, p. 1. 

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3. 

TRANSFERS FROM ONE HEADING TO ANOTHER (COMMITMENT APPROPRIATIONS) 

In  accordance  with  Point  23,  second  paragraph,  of  the  IIA  the  Commission  has 
examined  the  scope  for  offsetting  any  raising  of  the  ceiling  for  one  heading  by  the 
lowering of the ceiling for another. 

The margins left under the expenditure ceilings for the Headings other than Heading 
1A for the years 2011 to 2013 are currently estimated as follows:  

Heading 1B 

Heading 2 

Heading 3 A 

Heading 3 B 

Heading 4 

Heading 5 

2011

6.4

1678.8

67.0

0.1

0

243.2

2012

22.1

651.6

65.6

15.5

246.7

472.6

2013 

0.4 

112.8 

34.3 

25.3 

112.0 

521.6 

With a view to Point 13 of the IIA the Commission considers that the margins left 
under the ceilings of Headings 1B, 3A and 3 B are too tight to contribute to cover the 
additional  financing  needs  of  the  ITER  project  and  that  the  likely  additional  needs 
under Heading 4 do not allow for a reduction of the related expenditure ceiling.  

On  the  other  hand,  the  margins  for  the  year  2011  under  Headings  2  and  5  are  at  a 
level  that  allows  for  a  reduction  in  the  respective  expenditure  ceilings  to  offset  the 
increase  required  in  the  expenditure  ceiling  of  Heading  1A  for  ITER  in  2012  and 
2013. Therefore, the Commission proposes to lower the ceiling of Heading 2 for the 
year  2011  by  an  amount  of  EUR  650  million,  and  the  ceiling  of  Heading  5  for  the 
same year by EUR 190 million, and to increase the expenditure ceilings of Heading 
1A by EUR 650 million for the year 2012 and by EUR 190 million for the year 2013.  

The  proposed  adjustment  between  expenditure  ceilings  leaves  a  margin  of  EUR 
1028.8  million  available  under  the  ceiling  of  Heading  2  and  of  EUR  53.2  million 
under  Heading  5  in  2011.  The  Commission  has  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. 

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4. 

PAYMENT APPROPRIATIONS 

Point  23,  fourth  paragraph,  of  the  IIA  provides  that  any  revision  must  maintain  an 
appropriate  relationship  between  commitments  and  payments.  The  proposal  keeps 
the  overall  ceiling  for  payment  appropriations  under  the  2007-2013  financial 
framework  unchanged,  whilst  ensuring  an  orderly  progression  in  relation  to 
appropriations for commitments. 

5. 

SUMMARY TABLE AND CONCLUSION  

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

(EUR million)
1a. Competitiveness for Growth 
and Employment
2. Preservation and Management 
of Natural Resources
3a. Freedom, security and justice
3b. Citizenship
4. EU as a global player
5. Administration
6. Compensations
Total
change
appropriations

in commitment

Total
appropriations

change

in

payment

2007

2008

2009

2010

2011

2012
650

2013
190

2007-2013
840

-650

-190

-840

-840

650

0

190

840

-650

0
0
0
-190
0
0

0

0

0

0

0

0

The  revision  keeps  unchanged  the  global  ceilings  for  commitment  and  payment 
appropriations over the period 2007-2013 expressed in current prices.  

The  table  below  shows  the  revised  annual  expenditure  ceilings  of  the  financial 
framework resulting from the above changes in current prices.  

The formal decision amending the IIA as regards 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 (see below annex 
to  the  proposed  Decision  of  the  European  Parliament  and  of  the  Council).

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 FINANCIAL FRAMEWORK 2007-2013: ADJUSTED FOR ITER 

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

61.696

13.269

48.427

56.333

46.679

1.518

867

651

7.440

7.525

210

2010

63.555

14.167

49.388

59.955

47.146

1.693

1.025

668

7.893

7.882

0

2011

63.974

12.987

50.987

59.688

47.617

1.889

1.206

683

8.430

8.144

0

(EUR million - current prices)

2013

70.147

15.623

54.524

61.289

48.574

2.376

1.661

715

9.595

9.095

0

Total
2007-2013
438.618

90.203

348.415

412.411

330.085

12.216

7.549

4.667

55.935

55.735

862

2012

67.614

14.853

52.761

60.810

48.093

2.105

1.406

699

8.997

8.670

0

TOTAL COMMITMENT APPROPRIATIONS

124.457

132.797

134.722

140.978

142.125

148.196

152.502

975.777

as a percentage of GNI

1,02%

1,08%

1,16%

1,18%

1,15%

1,13%

1,12%

1,12%

TOTAL PAYMENT APPROPRIATIONS

122.190

129.681

120.445

134.289

133.440

141.360

144.171

925.576

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%

1,04%

0,20%

1,24%

1,12%

0,11%

1,23%

1,08%

0,15%

1,23%

1,08%

0,15%

1,23%

1,06%

0,17%

1,23%

1,06%

0,17%

1,23%

(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.

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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, to 
address additional financing needs of the ITER project 

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 
management4, and in particular to points 21, 22 and 23 thereof, 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

At  the  [trilogue]/[budgetary  conciliation]  meeting  of  …  2011  the  European 
Parliament,  the  Council  and  the  Commission  have  agreed  on  the  modalities  for 
providing additional financing to the ITER project. The financing requires 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 ceilings for commitment 
appropriations under sub-Heading 1A by EUR 650 million for the year 2012 and by 
EUR 190 million for the year 2013 in current prices. 

The increase of the ceilings for commitment appropriations under sub-Heading 1 A for 
the  years  2012  and  2013  will  be  fully  offset  by  a  decrease  of  the  ceilings  for 
commitment appropriations for the year 2011 under Heading 2 and Heading 5.  

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 in terms of payment requirements over the period 2007-2013. 

(4) 

Annex  I  of  the  Interinstitutional  Agreement  on  budgetary  discipline  and  sound 
financial management should therefore be amended accordingly5, 

4 
5 

OJ C 139, 14.6.2006, p. 1. 
For that purpose, the figures resulting from the above agreement are converted into 2004 prices. 

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HAVE DECIDED AS FOLLOWS: 

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 

For the Council 

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ANNEX  

FINANCIAL FRAMEWORK 2007-2013 

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

55.879

12.018

43.861

51.023

42.279

1.375

785

590

6.739

6.816

190

2010

56.435

12.580

43.855

53.238

41.864

1.503

910

593

7.009

6.999

0

2011

55.693

11.306

44.387

51.962

41.453

1.645

1.050

595

7.339

7.090

0

2012

57.708

12.677

45.031

51.901

41.047

1.797

1.200

597

7.679

7.400

0

2013

58.696

13.073

45.623

51.284

40.645

1.988

1.390

598

8.029

7.610

0

Total
2007-2013
388.538

79.653

308.885

366.055

293.105

10.765

6.625

4.140

49.463

49.366

800

TOTAL COMMITMENT APPROPRIATIONS

117.277

122.683

122.022

125.184

123.729

126.485

127.607

864.987

as a percentage of GNI

1,08%

1,09%

1,06%

1,06%

1,03%

1,03%

1,01%

1,049%

TOTAL PAYMENT APPROPRIATIONS

115.142

119.805

109.091

119.245

116.168

120.649

120.636

820.736

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%

0,95%

0,29%

1,24%

1,01%

0,22%

1,23%

0,97%

0,26%

1,23%

0,98%

0,25%

1,23%

0,96%

0,27%

1,23%

1,00%

0,23%

1,23%

(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.

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