Amended proposal for a COUNCIL REGULATION laying down the multiannual financial framework for the years 2014-2020
Date: 2012-07-06
Institutions: European Commission
Subjects: budgetary procedure, commitment of expenditure, financial management, general budget (EU)

EUROPEAN COMMISSION 

Brussels, 6.7.2012  
COM(2012) 388 final 

2011/0177 (APP) 

Amended proposal for a 

COUNCIL REGULATION 

laying down the multiannual financial framework for the years 2014-2020  

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE AMENDED PROPOSAL 

Following  the  adoption  of  its  proposal  for  a  Council  Regulation  laying  down  the 
multiannual financial framework for the years 2014-20201 ("MFF Regulation"), the 
Commission  submitted  proposals  for  all  the  legislative  acts  concerning  the 
multiannual  programmes  for  that  period.  As  detailed  under  point  2  below,  two  of 
these proposals imply amendments to the proposal for a MFF Regulation.  

It is also necessary to update the multiannual financial framework table included in 
the annex to the MFF Regulation to take into account the following elements: 

(a)  Allocations  for  the  Republic  of  Croatia  are  to  be  added  to  the  Commission's 
proposal  for  EU-27  based  on  the  Act  of  Accession  signed  on  9  December 
20112.  

(b)  The  availability  of  new  data  for  regional  GDP  and  national  GNI  results  in 
changes  to  the  regional  and  national  eligibility  under  the  Union's  cohesion 
policy and therefore in a recalculation of the regional and national allocations. 

(c)  The  most  recent  macro-economic  forecasts  and  projections  should  be  taken 
into account to calculate the maximum national allocations for Member States 
subject to capped cohesion envelopes as well as to express the ceilings of the 
MFF table for the period 2014-2020 as a percentage of EU-28 GNI.  

2. 

LEGAL ELEMENTS OF THE AMENDED PROPOSAL 

Proposed amendments  to  recitals and articles  are marked  in bold and  underlined in 
the attached Amended Proposal. 

2.1  Article 7 

On 15 November 2011 the Commission presented a proposal for a Regulation of the 
European  Parliament  and  of  the  Council  laying  down  general  provisions  on  the 
Asylum  and  Migration  Fund  and  on  the  instrument  for  financial  support  for  police 
cooperation, preventing  and  combating crime, and crisis management3 ("Horizontal 
Regulation"),  a  proposal  for  a  Regulation  of  the  European  Parliament  and  of  the 
Council  establishing  the  Asylum  and  Migration  Fund4,  and  a  proposal  for  a 
Regulation of the European Parliament and of the Council establishing, as part of the 
Internal  Security  Fund,  the  instrument  for  financial  support  for  police  cooperation, 
preventing  and  combating  crime,  and  crisis  management5.  The  same  day,  the 
Commission  presented  a proposal for a Regulation of the European  Parliament  and 
of the Council establishing, as part of the Internal Security Fund, the instrument for 

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COM(2011) 398 final of 29.6.2011. 
OJ L 112, 24.4.2012, p. 21. 
COM(2011) 752 final.  
COM(2011) 751 final. 
COM(2011) 753 final. 

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financial  support  for  external  borders  and  visa6.  The  three  specific  Regulations 
provide that the provisions of the Horizontal Regulation shall apply to them. 

In  the  Horizontal  Regulation  the  Commission  announced  that  it  will  amend  its 
proposal  for  a  MFF  Regulation  to  extend  the  provisions  of  Article  7  to  the 
programmes  implemented  under  shared  management  under  the  Asylum  and 
Migration  Fund  and  Internal  Security  Fund7.  This  is  part  of  the  Commission's 
endeavour to harmonise rules applicable to shared management. Accordingly, whilst 
every  effort  should  be  made  to  ensure  that  the  national  programmes  under  both 
Funds are adopted in 2014, a transfer to subsequent years of allocations not used in 
2014  should  be  possible  so  as  to  avoid  the  loss  of  related  commitment 
appropriations.  

2.2  Article 8 (and recital No 7) 

On  6  October  2011,  the  Commission  presented  a  proposal  for  a  Regulation  of  the 
European  Parliament  and  of  the  Council  laying  down  common  provisions  on  the 
European  Regional  Development  Fund,  the  European  Social  Fund,  the  Cohesion 
Fund,  the  European  Agricultural  and  Rural  Development  Fund  and  the  European 
Maritime  and  Fisheries  Fund  covered  by  the  Common  Strategic  Framework  and 
laying  down  general  provisions  on  the  European  Regional  Development  Fund,  the 
European  Social  Fund  and  the  Cohesion  Fund  and  repealing  Regulation  (EC)  No 
1083/2006 ("CSF Regulation")8. 

Article  21  of  the  CSF  Regulation  provides  for  rules  on  conditionality  linked  to  the 
coordination  of  the  Member  States'  economic  policies,  including  the  possible 
suspension of commitments and payments for programmes supported from the Funds 
covered by the Common Strategic Framework.  

Article  21(8),  last  paragraph,  of  that  Regulation  provides  that,  when  the  conditions 
for  lifting  a  suspension  of  commitments  or  payments  are  met,  the  Council  shall,  at 
the same time, decide, on a proposal of the Commission, to re-budget the suspended 
commitments  in  accordance  with  Article  8  of  the  Council  Regulation  laying  down 
the multiannual financial framework for the years 2014-2020.  

Consequently, Article 8 (and recital No 7) has to be amended accordingly to  allow 
for the transfer and re-budgeting of suspended commitments.  

Article  6  shall  apply  to  decisions  related  to  the  lifting  of  a  suspension  of 
appropriations for payments.  

2.3  Article 11 and new Article 11a (and recital No 7 and Article 9(5)) 

Beyond  the  two  above  changes  stemming  from  the  legislative  proposals  on 
multiannual programmes, the Commission also proposes to amend Article 11 of its 
proposal  for  a  MFF  Regulation:  For  reasons  of  legal  clarity  and  terminology  it 
proposes  to  split  Article  11  into  two  Articles,  so  as  to  distinguish  the  case  of  the 

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COM(2011 750 final. 
COM(2011) 752 final, point 5.1. of the explanatory memorandum, page 7, last bullet point. 
COM(2011) 615 final.  

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accession  of  a  new  Member  State  to  the  Union  from  that  of  the  reunification  of 
Cyprus. This requires recital No 7 and Article 9(5) to be amended accordingly.  

2.4  Amendments to recital No 8 and Article 5 

For clarification purposes, and given the availability of more recent macroeconomic 
forecasts,  some  minor  amendments  are  made  to  recital  No  8  and  Article  5  of  the 
proposal.  

3. 

BUDGETARY IMPLICATIONS  

3.1 

Incorporating the allocations for Croatia in the MFF table  

Country-specific  allocations  for  the  Republic  of  Croatia  need  to  be  added  to  the 
Commission's  proposal  for  the  Structural  Funds,  the  Cohesion  Fund,  the  European 
Agricultural  Fund  for  Rural  Development,  the  European  Maritime  and  Fisheries 
Fund, the Asylum and Migration Fund and the Internal Security Fund. 

These allocations are calculated on the basis of the same methodology applied for the 
EU-27, subject to the transitional provisions laid down in the Act of Accession.  

Accordingly, for the Structural Funds and the Cohesion Fund, the amounts calculated 
on the basis of the proposed allocation method for the period 2014-2020 are subject 
to a twofold adjustment: 

– 

– 

A phasing-in schedule of 70% for the year 2014 and 90% for the year 2015; 

The  allocations  for  2014  and  2015  should  amount  to  respectively  2.33  times 
and  3  times  the  2013  allocation  insofar  as  the  limits  of  the  new  acquis  allow 
(i.e. the capping rate of 2.5% of national GDP cannot be breached). 

As regards the CAP: 

– 

– 

– 

For market measures the allocation is calculated on the full application of the 
acquis, subject to the special conditions laid down in the Act of Accession for 
the wine sector; 

For  direct  payments,  the  same  10  year  phasing-in  schedule  is  applied  to  the 
applicable level of such payments in the EU-15 as was the case for the Member 
States which acceded on 1 May 2004 and 1 January 2007; 

For rural development, the allocation is based on the same methodology which 
the  Commission  applied  for  the  overall  amounts  for  EU-27.  The  Act  of 
Accession does not foresee a phasing-in period.  

As regards the EMFF, the allocation is subject to the same twofold adjustment for the 
years  2014-2015  (phasing-in  and  multiplicator)  as  is  the  case  for  the  structural  and 
cohesion funds. 

Croatia participates fully in the Asylum and Migration Fund as of 2014. It receives a 
special  'Schengen'  allocation  for  the  year  2014  and  consequently  shall  not  benefit 
from the external borders and visa strand of the Internal Security Fund for that year. 

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Furthermore, Croatia shall receive a temporary "cash-flow facility" to improve its net 
budgetary position for the year 2014.  

Besides  benefitting  from  these  pre-allocated  amounts,  Croatia  shall  also  fully 
participate in all other internal policies. Therefore all the non pre-allocated envelopes 
need to be adjusted accordingly. The same approach as for the 2013 amounts for the 
closure  of  the  Accession  negotiations  has  been  applied  –  i.e.  the  amounts  are 
calculated in proportion to the share of Croatia in the GDP and the population of EU-
27,  resulting  in  an  increase  of  all  the  proposed  non  pre-allocated  envelopes  by 
0.62%9. 

Heading 5 would need to be updated to take account of the additional administrative 
expenditure  requirements  resulting  from  the  accession  of  Croatia.  With  Croatia's 
accession  and  to  manage  the  enlarged  Union,  additional  resources  will  be  needed 
mainly for linguistic, legal and programme management tasks. For the Commission 
alone the net reinforcement needed will amount to 384 additional full time equivalent 
units,  mostly  in  the  form  of  posts  to  be  added  to  the  establishment  plan  with  their 
phasing  in  to  be  completed  by  2014.  The  other  Institutions  will  need  additional 
resources  mainly  for  linguistic  and  legal  expenditure,  equipment  and  operating 
expenditure,  communication  activities  and  IT  management  tasks,  requiring  a  net 
reinforcement of some 274 additional full time equivalent units mostly in the form of 
posts. Those additional posts will also facilitate the integration of Croatian nationals 
to ensure geographical balance. The additional cost over the period 2014-2020 for all 
institutions is estimated at EUR 536 million (2011 prices). 

Finally, the impact of these additional commitments needs to be added to the annual 
global payment ceilings on the basis of the same payment schedules used for the EU-
27. 

The  resulting  additional  amounts  are  summarised  in  the  table  below.  The  proposed 
ceilings for EU-27 need to be adjusted accordingly. 

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The share of Croatia in the population and GNI of EU 27 amounts to 0.62%. This share was used for 
establishing the amounts for 2013 in the Common Position on Chapter 33 – Financial and Budgetary 
provisions. 

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Additional amounts for Croatia in the MFF 2014-2020 

COMMITMENT APPROPRIATIONS

1. Smart and Inclusive Growth

of which: Economic, social and territorial cohesion

2. Sustainable Growth: Natural Resources

of which: Market related expenditure and direct payments

3. Security and citizenship

4. Global Europe

5. Administration 

of which: Administrative expenditure of the institutions

6. Compensations 

2014

1 088

1 011

458

118

88

0

80

80

27

2015

1 295

1 214

477

134

31

0

76

76

0

2016

1 330

1 244

488

148

31

0

76

76

0

2017

1 361

1 271

496

163

31

0

76

76

0

2018

1 395

1 300

520

193

31

0

76

76

0

2019

1 428

1 329

542

222

31

0

76

76

0

(EUR million - 2011 prices)

2020

1 462

1 358

564

249

31

0

76

76

0

Total
2014-2020

9 360

8 728

3 545

1 227

273

0

536

536

27

TOTAL COMMITMENT APPROPRIATIONS

TOTAL PAYMENT APPROPRIATIONS

1 741

550

1 879

877

1 925

1 284

1 964

1 640

2 021

1 764

2 078

1 941

2 133

1 900

13 741

9 956

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3.2  Updating  of  the  ceiling  for  Smart  and  Inclusive  Growth  and  the  sub-
ceiling for Economic, social and territorial cohesion 

The  cohesion  allocations  in  the  Commission  proposals  were  based  on  the  latest 
available  data  when  the  proposals  were  adopted,  i.e.  the  average  regional  GDP  for 
the  years  2006  to  2008,  regional  education  and  labour  market  data  for  the  years 
2007-2009, the average GNI for the years 2007 to 2009, as well as the Spring 2011 
macro-economic forecast and accompanying medium term projections. 

Following  the  publication  of  regional  GDP  data  for  2009,  regional  education  and 
labour market data for 2010, and of GNI data for 2010, these proposals now need to 
be  updated:  The  three-year  average  determining  eligibility  shifts  to  2007-2009  for 
regional GDP and to 2008-2010 for GNI. Furthermore, the maximum envelopes for 
those Member States subject to a cap of 2.5% of national GDP are now calculated on 
the basis of the Spring 2012 forecast and updated medium-term projections. 

This results in the following changes to the overall allocation for the EU-27: 

COMMITMENT APPROPRIATIONS

1. Smart and Inclusive Growth

of which: Economic, social and territorial cohesion

2014

-1 015

-1 015

2015

-860

-860

2016

-610

-610

2017

-573

-573

2018

-675

-675

2019

-810

-810

3.3  Updating of the global ceilings for payment appropriations 

(EUR million - 2011 prices)

2020

-963

-963

Total
2014-2020

-5 506
-5 506  

The annual global ceilings for payments need to be updated on the basis of the most 
recent information available: 

– 

– 

– 

The budget execution for the year 2011 

The adopted budget for the year 2012 

The  draft  budget  for  the  year  2013  and  the  accompanying  revised  payment 
schedules 

3.4  Updating  of  the  overall  annual  ceilings  for  commitments  and  payments 
expressed as a percentage of EU-GNI 

Finally, the overall annual ceilings for commitments and payments of the MFF table, 
as  modified  under  sections  3.1  and  3.2  above,  need  to  be  expressed  in  terms  of  a 
percentage of EU-28 GNI, calculated on the basis of the Commission's Spring 2012 
macro-economic forecast and updated medium-term projections. 

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2011/0177 (APP) 

Amended proposal for a 

COUNCIL REGULATION 

laying down the multiannual financial framework for the years 2014-2020  

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  functioning  of  the  European  Union,  and  in  particular 
Article 312 thereof, in conjunction with the Treaty establishing the European Atomic Energy 
Community, and in particular Article 106a thereof, 

Having regard to the proposal from the European Commission10, 

Having regard to the consent of the European Parliament11, 

After transmission of the draft legislative act to national Parliaments, 

Acting in accordance with a special legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

The  annual  ceilings  on  commitments  appropriations  by  category  of  expenditure  and 
the  annual  ceilings  on  payment  appropriations  established  by  this  Regulation  must 
respect  the  ceilings  set  for  commitments  and  own  resources  in  [Council  Decision 
XXXX/XX/EU, Euratom].  

Taking into account the need for an adequate level of predictability for preparing and 
implementing  medium-term  investments,  the  duration  of  the  financial  framework 
should  be  set  at  seven  years  starting  1  January  2014,  with  an  assessment  of  the 
implementation of the financial framework at mid-term. The results of this assessment 
should be taken into account during the last three years of the duration of the financial 
framework. 

Special  instruments,  the  Emergency  Aid  Reserve,  the  European  Union  Solidarity 
Fund,  the  Flexibility  Instrument,  the  European  Globalisation  Adjustment  Fund,  the 
Reserve for crises in the agriculture sector and the Contingency Margin, are necessary 
to  allow  the  Union  to  react  to  specified  unforeseen  circumstances,  or  to  allow  the 
financing  of  clearly  identified  expenditure  which  could  not  be  financed  within  the 
limits of the ceilings available for one or more headings as laid down in the financial 
framework. Specific provisions are therefore necessary to provide for a possibility to 
enter in the budget commitment appropriations over and above the ceilings set out in 
financial framework where it is necessary to use special instruments. 

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OJ C , , p. . 
OJ C , , p. . 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

(10) 

(11) 

If  it  is  necessary  to  mobilise  the  Union's  budget  guarantees  for  the  loans  provided 
under  the  Balance  of  Payment  Facility  and  the  European  Financial  Stabilisation 
Mechanism  set  out  in  Council  Regulation  (EC)  No  332/2002  of  18  February  2002 
establishing a facility providing medium-term financial assistance for Member States' 
balances of payments12 and in Council Regulation (EU) No 407/2010 of 11 May 2010 
establishing  a  European  financial  stabilisation  mechanism13,  the  necessary  amount 
should  be  mobilised  over  and  above  the  ceilings  of  the  commitments  and  payments 
appropriations of the financial framework while respecting the own resources ceiling. 

The financial framework should be laid down in 2011 prices. The rules for technical 
adjustments  of  the  financial  framework  to  recalculate  the  ceilings  and  margins 
available should also be laid down. 

The financial framework should not take account of budget items financed by assigned 
revenue  within  the  meaning  of  Regulation  (EU)  No  [xxx/201x]  of  the  European 
Parliament  and  of  the  Council  of  […]  on  the financial rules applicable  to the annual 
budget of the Union14. 

Rules  should  be  laid  down  for  other  situations  that  may  require  the  financial 
framework to be adjusted. Those adjustments may be related to the implementation of 
the budget, macroeconomic conditionalities linked to the coordination of Member 
States'  economic  policiesexcessive  government  deficit,  revision  of  the  Treaties, 
enlargements,  the  reunification  of  Cyprus,  or  delayed  adoption  of  new  rules 
governing certain policy areas. 

The national envelopes for cohesion policyfor growth and employment are established 
on  the  basis  of  forecast  for  Gross  Domestic  Product  (hereinafter  "GDP")  of  spring 
20121.  Given  the  forecasting  uncertainties  and  the  impact  for  the  capped  Member 
States an assessment should be made in mid-term to compare the forecasted and actual 
GDP  and  its  impact  for  the  envelopes.  In  case  the  GDP  for  2014-2016  differs  more 
than  +/-  5%  from  the  forecast  used  in  20121  the  envelopes  for  2018-2020  for  the 
Member States concerned need to be adjusted. The rules for this adjustment need to be 
provided for. 

The financial framework may need to be revised in case of unforeseen circumstances 
that cannot be dealt with within the established ceilings of the financial framework. It 
is therefore necessary to provide for revision of the financial framework in such cases. 

It  is  necessary  to  provide  for  general  rules  on  interinstitutional  cooperation  in  the 
budgetary procedure. 

In order to help the budgetary procedure to run smoothly, it is necessary to provide for 
the  basic  rules  for  the  budgeting  of  the  expenditure  for  the  Common  Foreign  and 
Security policy and overall amount for the period covered by the financial framework.  

(12)  Detailed arrangements on interinstitutional cooperation in the budgetary procedure and 
on the budgeting of the expenditure for the Common Foreign and Security policy are 

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OJ L 53, 23.2.2002, p. 1 
OJ L 118, 12.5.2010, p. 1. 
OJ L . 

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laid  down  in  the  Interinstitutional  Agreement  of  […]  201x  between  the  European 
Parliament, the Council and the Commission on cooperation in budgetary matters and 
sound financial management15. 

(13)  Specific  rules  are  also  necessary  for  dealing  with  large-scale  infrastructure  projects 
whose  lifetime  extends  well  beyond  the  period  set  for  the  financial  framework.  It  is 
necessary  to  establish  maximum  amounts  for  the  contributions  from  the  Union's 
budget to those projects. Those requests should not have any impact on other projects 
financed from the Union's budget.  

(14)  The Commission should present a proposal for a new multiannual financial framework 
before  1  January  2018  to  enable  the  institutions  to  adopt  it  sufficiently  in  advance 
before  the  start  of  the  following  financial  framework.  The  financial  framework  laid 
down  in  this  Regulation  should  continue  to  apply  if  the  new  financial  framework 
regulation  is  not  adopted  before  the  end  of  the  term  of  the  financial  framework  laid 
down in this Regulation, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Multiannual Financial Framework 

The  multiannual  financial  framework  for  the  period  2014  to  2020  (hereinafter  the  financial 
framework) is set out in the Annex.  

Article 2 

Compliance with the ceilings of the financial framework 

1. 

2. 

The  European  Parliament,  the  Council  and  the  Commission  shall  comply  with  the 
annual  expenditure  ceilings,  set  out  in  the  financial  framework,  during  each 
budgetary procedure and when implementing the budget for the year concerned.  

The  commitment  appropriations  may  be  entered  in  the  budget  over  and  above  the 
ceilings  of  the  relevant  headings  laid  down  in  the  financial  framework  where  it  is 
necessary to use the resources from the Emergency Aid Reserve, the European Union 
Solidarity  Fund,  the  Flexibility  Instrument,  the  European  Globalisation  Adjustment 
Fund, the Reserve for crises in the agriculture sector and the Contingency Margin in 
accordance  with  Council  Regulation  (EC)  No  2012/200216,  Regulation  (EC)  No 
1927/2006  of  the  European  Parliament  and  of  the  Council17,  Regulation  No 
xxxx/201x  of  the  European  Parliament  and  the  Council18  and  the  Interinstitutional 
Agreement  of  […]  201x  on  cooperation  in  budgetary  matters  and  sound  financial 
management (hereinafter the Insterinstitutional Agreement). 

15 
16 
17 
18 

OJ C … 
OJ L 311, 14.11.2002, p. 3. 
OJ L 406, 30.12.2006, p. 1. 
OJ L , , p. 

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3. 

1. 

2. 

Where a guarantee for a loan covered by the Union's budget according to Regulation 
(EC) No 332/2002 or Regulation (EU) No 407/2010 needs to be mobilised, it shall be 
over and above the ceilings laid down in the financial framework. 

Article 3 

Respect of own resources ceiling 

For each of the years covered by the financial framework, the total appropriations for 
payments  required,  after  annual  adjustment  and  taking  account  of  any  other 
adjustments and revisions as well as the application of paragraphs 2 and 3 of Article 
2,  may  not  be  such  as  to  produce  a  call-in  rate  for  own  resources  that  exceeds  the 
own resources ceiling set in accordance with [Decision XXXX/XX/EU, Euratom]. 

Where  necessary,  the  ceilings  set  in  the  financial  framework  shall  be  lowered  in 
order  to  ensure  compliance  with  the  own  resources  ceiling  set  in  accordance  with 
[Decision XXXX/XX/EU, Euratom]. 

Article 4 

Technical adjustments 

1. 

Each  year  the  Commission,  acting  ahead  of  the  budgetary  procedure  for  year  n+1, 
shall make the following technical adjustments to the financial framework: 

(a) 

(b) 

(c) 

revaluation,  at  year  n+1  prices,  of  the  ceilings  and  of  the  overall  figures  for 
appropriations for commitments and appropriations for payments; 

calculation  of  the  margin  available  under  the  own  resources  ceiling  set  in 
accordance with [Decision XXXX/XX/EU, Euratom]; 

calculation of the absolute amount of the Contingency Margin provided for in 
Point 15 of the Interinstitutional Agreement. 

The Commission shall make the technical adjustments referred to in paragraph 1 on 
the basis of a fixed deflator of 2% a year.  

The Commission shall communicate the results of the technical adjustments referred 
to in paragraph 1 and the underlying economic forecasts to the European Parliament 
and the Council. 

No  further  technical  adjustments  may  be  made  in  respect  of  the  year  concerned, 
either during the year or as ex-post corrections during subsequent years. 

2. 

3. 

4. 

Article 5 

Adjustment of cohesion policy envelopes 

1. 

In its technical adjustment for the year 2018, if it is established that cumulated Gross 
Domestic  Product  ("GDP")  of  any  capped  Member  State  for  the  years  2014-2016 

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has diverged by more than +/- 5 % from the cumulated GDP estimated in 20121 for 
the  establishment  of  cohesion  policy  envelopes  for  Member  States  for  the  period 
2014-2020,  the  Commission  shall  adjust  the  amounts  allocated  from  funds 
supporting cohesion to the Member State concerned for that period. 

The  total  net  effect,  whether  positive  or  negative,  of  the  adjustments  referred  to  in 
paragraph 1 may not exceed EUR 3 billion.  

The required adjustments shall be spread in equal proportions over the years 2018-
2020  and  the  corresponding  ceilings  of  the  financial  framework  shall  be  modified 
accordingly. 

2. 

3. 

Article 6 

Adjustments related to implementation 

When  notifying  the  European  Parliament  and  the  Council  of  the  results  of  the  technical 
adjustments  to  the  financial  framework,  the  Commission  shall  present  any  proposals  for 
adjustments to the total appropriations for payments which it considers necessary, in the light 
of  implementation,  to  ensure  an  orderly  progression  in  relation  to  the  appropriations  for 
commitments. The decisions on those proposals shall be taken before 1 May of year n. 

Article 7 

Adjustment of Structural Funds, Cohesion Fund, the European Agricultural Fund for Rural 
Development Fund and, the European Fund forMaritime and Fisheries Fund, the Asylum 
and Migration Fund and the Internal Security Fund 

1. 

In  the  case  of  adoption  after  1  January  2014  of  new  rules  or  programmes  under 
shared  management  forgoverning  the  Structural  Funds,  the  Cohesion  Fund,  the 
European Agricultural Fund for Rural Development Fund and, the European Fund 
forMaritime  and  Fisheries  Fund,  the  Asylum  and  Migration  Fund  and  the 
Internal  Security  Fund,  the  financial  framework  shall  be  adjusted  in  order  to 
transfer to subsequent years, in excess of the corresponding expenditure ceilings, of 
allocations not used in 2014. 

2. 

The adjustment concerning the transfer of unused allocation for the year 2014 shall 
be adopted before 1 May 2015. 

Article 8 

Adjustments related to macroeconomic conditionalities linked to the coordination of 
Member States' economic policiesexcessive government deficit 

In the case of the lifting of a suspension of budgetary commitments concerning the European 
Regional  Development  Fund,  the  European  Social  Fund,  the  Cohesion  Fund,  the 
European  Agricultural  Fund  for  Rural  Development  and  the  European  Maritime  and 
Fisheries  Fund  in  the  context  of  macroeconomic  conditionalities  linked  to  the 
coordination  of  Member  States'  economic  policiesan  excessive  deficit  procedure,  the 

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Council,  in  accordance  with  the  Treaty  and  in  compliance  with  the  relevant  basic  act,  shall 
decide  on  a  transfer  of  suspended  commitments  to  the  following  years.  Suspended 
commitments of year n may not be re-budgeted beyond year n+2. 

Article 9 

Revision of the financial framework 

1. 

2. 

3. 

4. 

5. 

In  case  of  unforeseen  circumstances  the  financial  framework  may  be  revised  in 
compliance  with  the  own  resources  ceiling  set  in  accordance  with  [Decision 
XXXX/XX/EU, Euratom]. 

Any  revision  of  the  financial  framework  in  accordance  with  paragraph  1  shall  take 
into account the scope for reallocating expenditure between the programmes covered 
by the heading concerned by the revision, with particular reference to any expected 
under-utilisation of appropriations. Where feasible, a significant amount, in absolute 
terms  and  as  a  percentage  of  the  new  expenditure  planned,  shall  be  within  the 
existing ceiling for the heading. 

Any  revision  of  the  financial  framework  in  accordance  with  paragraph  1  shall  take 
into account the scope for offsetting any raising of the ceiling for one heading by the 
lowering of the ceiling for another. 

Any  revision  of  the  financial  framework  in  accordance  with  paragraph  1  shall 
maintain an appropriate relationship between commitments and payments. 

Adjustments referred to in Article 3(2), 6, 7, 8, 10, 11, 11a and 16 also constitute a 
revision of the financial framework. 

Article 10 

Adjustment of the financial framework in case of a revision of the Treaties 

Should  a  revision  of  the  Treaties  with  budgetary  implications  occur  during  the  financial 
framework, the necessary adjustments to the financial framework shall be made accordingly. 

Article 11 

Adjustment of the financial framework in case of enlargement and unification of Cyprus  

If  new  Member  States  accede  to  the  Union  during  the  period  covered  by  the  financial 
framework,  the  financial  framework  shall  be  adjusted  to  take  account  of  the  expenditure 
requirements resulting from the outcome of the accession negotiations. 

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Article 11a 

Adjustment of the financial framework in case of reunification of Cyprus  

In case of reunification of Cyprus during the period covered by the financial framework, the 
latter shall be adjusted to take account of the comprehensive settlement of the Cyprus problem 
and the additional financial needs resulting from reunification. 

Article 12 

Interinstitutional cooperation in the budgetary procedure 

The European Parliament, the Council and the Commission (hereinafter the institutions) shall 
take any measures to facilitate the annual budgetary procedure.  

The  institutions  shall  cooperate  in  good  faith  throughout  the  procedure  with  a  view  to 
reconciling 
through  appropriate 
interinstitutional  contacts  to  monitor  the  progress  of  the  work  and  analyse  the  degree  of 
convergence at all stages of the procedure. 

institutions  shall  cooperate 

their  positions.  The 

The institutions shall 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, 
leading to the final adoption of the budget.  

Trilogues may be held at all stages of the procedure and at different levels of representation, 
depending  on  the  nature  of  the  expected  discussion.  Each  institution,  in  accordance  with  its 
own rules of procedure, shall designate its participants for each meeting, define its mandate 
for the negotiations and inform the other institutions of arrangements for the meetings in good 
time. 

Article 13 

Financing of the Common foreign and security policy  

The  total  amount  of  operating  Common  foreign  and  security  policy  (hereinafter  "CFSP") 
expenditure shall be entered entirely in one budget chapter, entitled CFSP. That amount shall 
cover the real predictable needs, assessed in the framework of the establishment of the draft 
budget, on the basis of forecasts drawn up annually by the High Representative of the Union 
for Foreign Affairs and Security Policy, and a reasonable margin for unforeseen actions. No 
funds may be entered in a reserve.  

Article 14 

Contribution to the financing of large scale projects 

A maximum amount of EUR 7 000 million in 2011 prices shall be available for the European 
satellite  navigation  programmes  (EGNOS  and  Galileo)  from  the  EU  budget  for  the  period 
2014-2020. 

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Article 15 

Mid-term assessment of implementation of the financial framework 

In 2016, the Commission shall present an assessment of the implementation of the financial 
framework accompanied, where necessary, by relevant proposals.  

Article 16 

Transition towards the next financial framework 

Before  1  January  2018,  the  Commission  shall  present  a  proposal  for  a  new  multiannual 
financial framework. 

If  no  Council  regulation  determining  a  new  multiannual  financial  framework  has  been 
adopted before 31 December 2020, the ceilings and other provisions corresponding to the last 
year  of  the  financial  framework  shall  be  extended  until  a  regulation  determining  a  new 
financial  framework  is  adopted.  If  new  Member  States  accede  to  the  Union  after  2020,  the 
extended financial framework shall, if necessary, be adjusted in order to take into account the 
results of accession negotiations. 

Article 17 

Entry into force 

This Regulation shall enter into force on the third day following that of its publication in the 
Official Journal of the European Union. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at …,  

For the Council 
The President 

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ANNEX 

Multiannual Financial Framework table (EU-28) 

(EUR million - 2011 prices)

COMMITMENT APPROPRIATIONS

2014

2015

2016

2017

2018

2019

2020

1. Smart and Inclusive Growth

of which: Economic, social and territorial cohesion

2. Sustainable Growth: Natural Resources

of which: Market related expenditure and direct payments

3. Security and citizenship

4. Global Europe

5. Administration 

of which: Administrative expenditure of the institutions

6. Compensations 

64 769

50 464

57 845

42 363

2 620

9 400

8 622

7 047

27

67 015

51 897

57 005

41 756

2 601

9 645

8 755

7 115

0

68 853

53 177

56 190

41 178

2 640

9 845

8 872

7 184

0

70 745

54 307

55 357

40 582

2 679

9 960

9 019

7 267

0

72 316

55 423

54 357

39 810

2 718

74 386

56 474

53 371

39 052

2 757

76 679

57 501

52 348

38 309

2 794

10 150

10 380

10 620

9 149

7 364

0

9 301

7 461

0

9 447

7 561

0

Total
2014-2020

494 763

379 243

386 472

283 051

18 809

70 000

63 165

51 000

27

TOTAL COMMITMENT APPROPRIATIONS

143 282

145 021

146 400

147 759

148 690

150 195

151 888

1 033 235

as a percentage of GNI

1.10%

1.09%

1.08%

1.08%

1.07%

1.06%

1.06%

1.08%

TOTAL PAYMENT APPROPRIATIONS

133 976

141 175

144 126

138 776

146 870

144 321

138 356

as a percentage of GNI

1.03%

1.06%

1.06%

1.01%

1.06%

1.02%

0.96%

987 599
1.03%  

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