AMENDING LETTER No 1TO THE DRAFT GENERAL BUDGET 2013 STATEMENT OF EXPENDITURE BY SECTIONSection III – Commission
Date: 2012-10-19
Institutions: European Commission
Subjects: EAGGF, amending budget, conservation of resources, fishing agreement, general budget (EU), management of resources

EUROPEAN 
COMMISSION 

Brussels, 19.10.2012 
COM(2012) 624 final 

AMENDING LETTER No 1 
TO THE DRAFT GENERAL BUDGET 2013 

STATEMENT OF EXPENDITURE BY SECTION 
Section III – Commission 

EN 

   EN 

 
 
 
 
  
 
 
AMENDING LETTER No 1 
TO THE DRAFT GENERAL BUDGET 2013 

STATEMENT OF EXPENDITURE BY SECTION 
Section III – Commission 

Having regard to: 

– 

– 

– 

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 34 thereof, 

the draft general budget of the European Union for the financial year 2013 presented by 
the Commission on 25 May 20122, 

the European Commission hereby presents to the budgetary authority the amending letter No 1 to 
the draft general budget of the European Union for the financial year 2013 for the reasons set out 
in the explanatory memorandum. 

1 
2 

OJ L 248, 16.9.2002, p. 1. 
COM(2012)300 

2 

 
 
  
 
 
                                                 
 
 
TABLE OF CONTENTS 

1. 

2. 

INTRODUCTION ..............................................................................................................................................4 

PRESERVATION AND MANAGEMENT OF NATURAL RESOURCES .................................................4 

2.1. 
2.2. 

2.3. 
2.4. 

2.2.1 
2.2.2 

INTRODUCTION AND SUMMARY TABLE.........................................................................................................4 
EAGF (MARKET RELATED EXPENDITURE AND DIRECT PAYMENTS) ...............................................................5 
Overall Picture ....................................................................................................................................5 
Detailed Comments..............................................................................................................................6 
INTERNATIONAL FISHERIES AGREEMENTS ..................................................................................................11 
CHANGES TO THE NOMENCLATURE AND BUDGETARY REMARKS................................................................11 

3. 

SUMMARY TABLE BY HEADING OF THE FINANCIAL FRAMEWORK ..........................................12 

STATEMENT OF 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. 

3 

 
 
  
 
 
 
1. 

INTRODUCTION 

The Amending Letter No 1 (AL 1) to the Draft Budget for 2013 (DB 2013) covers the following: 

–  the  line  by  line  updating  of  the  estimated  needs  for  agricultural  expenditure.  In  addition  to 
changing market factors, the AL also incorporates the impact of legislative decisions adopted in 
the  agricultural  sector  since  the  DB  2013  was  drawn  up,  revised  estimates  of  needs  for  some 
direct payments, as well as any proposals, which are expected to have a significant effect during 
the coming budget year.  

–  an update of the situation for International Fisheries Agreements. 

The budgetary impact of these adjustments is a reduction in commitment and payment appropriations 
of EUR 25,1 million compared to the Draft Budget 2013. 

2. 

PRESERVATION AND MANAGEMENT OF NATURAL RESOURCES 

2.1. 

Introduction and Summary Table 

The  AL  1  is  sent  to  the  budgetary  authority  in  accordance  with  Article  314  of  the  Treaty  on  the 
Functioning of the European Union (TFEU) "the Commission may amend the draft budget during the 
procedure until such time as the Conciliation Committee, referred to in paragraph 5, is convened". 

The AL 1 is based, in the same way as the DB itself, on the needs of the EU as a whole. It must be 
stressed  that  appropriations  for  agricultural  expenditure  financed  by  the  EAGF  (European 
Agricultural  Guarantee  Fund)  are  to  be  understood  as  a  forecast  and  not  as  an  objective  of 
expenditure.  The  actual  expenditure  will  depend,  in  particular,  on  actual  market  conditions,  on  the 
actual  euro-dollar  exchange  rate,  and  on  the  rhythm  of  the  payments  by  Member  States.  In 
accordance with the legal base, whatever the amount a Member State is obliged to pay in accordance 
with the regulations – within the limits set by the financial framework - will be reimbursed in full, 
subject to budget availabilities.3 

For clarification and transparency purposes, some budgetary remarks have been updated. 

According to the present AL 1, overall appropriations requested for heading 2 in 2013 are estimated 
at EUR 60 282 million, leaving a margin of EUR 1 007 million in commitment appropriations below 
the corresponding ceiling of the multiannual financial framework. 

The  commitment  appropriations  for  agricultural  expenditure  (including  veterinary  and  fisheries 
expenditure  financed  under  the  EAGF)  amount  to  EUR 44 101 million.  The  decrease  of 
EUR 30 million  compared  with  the  DB  2013  is  the  net  result  of  higher  than  expected  assigned 
revenue to be carried over from 2012 and revised 2013 estimates both for expenditure appropriations 
and for fresh assigned revenue. EAGF payment appropriations are decreased by the same amount to 
a total of EUR 44 083 million.  

As  far  as  the  International  Fisheries  Agreements  are  concerned,  the  AL  1  proposes  to  increase 
commitment  appropriations  and  payment  appropriations  for  budget  article  11 03 01  International 
Fisheries Agreements by EUR 18,5 million, as well as to decrease on the reserve line commitment 
and payment appropriations by EUR 13,8 million, which results in a net increase of EUR 4,7 million. 

The following table summarises the effect of AL 1 on heading 2: 

3  

Article 19 of Council Regulation (EC) No 1290/2005. 

4 

 
 
  
 
                                                 
EUR million 

Ceiling Financial Framework 
margin 
Total Appropriations Heading 2 
of which: 
Agricultural  expenditure 
related 
payments)4 
International  Fisheries  and  Law  of 
the Sea5 

(market 
and  direct 

expenditure 

DB 2013 
(a) 

AL1/2013 
(b) 

Difference 
(c)=(b)-(a) 

PA 

CA 
61 289,0 
981,5 

60 307,5  57 964,9 

PA 

CA 
61 289,0 
1 006,6 
60 282,4  57 939,8 

CA 

0 
+25,1 
-25,1 

PA 

-25,1

44 130,3  44 112,9 

44 100,5  44 083,1 

-29,8 

-29,8

149,0 

148,2 

153,7 

152,9 

+4,7 

+4,7

2.2. 

EAGF (market related expenditure and direct payments) 

2.2.1  Overall Picture 

The  purpose  of  the  AL  1  is  to  ensure  that  the  agricultural  budget  is  based  on  the  most  up-to-date 
economic  data  and  legislative  framework.  By  the  month  of  September,  the  Commission  has  at  its 
disposal  a  first  indication  of  the  level  of  production  for  2012  and  perspectives  for  the  agricultural 
markets, which is the basis for the updated estimates of the budgetary needs for 2013. 

As  in  the  past,  the  Commission  has  carefully  reviewed  all  its  estimates  of  agricultural  expenditure 
line by line. As well as taking into account market factors, this AL 1 also incorporates the impact of 
any  legislative  decisions  adopted  in  the  agricultural  sector  since  the  DB  was  drawn  up,  as  well  as 
proposals made by the Commission. 

EAGF  appropriations  are  decreased  by  EUR 30 million.  This  is  the  net  result  of  different  factors: 
somewhat higher needs in chapter 05 02 Intervention in Agricultural markets (+ EUR 59 million) and  
in  chapter  05 03  Direct  aids  (+ EUR 5 million),  additional  extra-ordinary  needs  in  chapter  05 07 
Audit  of  agricultural  expenditure  (+ EUR 106 million)  and  a  modification  in  the  level  of  EAGF 
assigned  revenue  available  in  2013.  Regarding  assigned  revenue,  an  amount  of  EUR 230 million 
received in 2012, but estimated that it will not be needed to cover expenditure that same year, will be 
carried over from 2012 to 2013. Secondly, the Commission expects a small decrease in the assigned 
revenue generated in 2013 (- EUR 30 million), which is a combination of a decrease in the expected 
milk  superlevy  (- EUR 41 million)  based  on  the  latest  figures  available  from  Member  States,  a 
decrease  in  expected  revenue  from  irregularities  (- EUR 5 million)  and  a  decrease  in  the  expected 
conformity  clearance  of  accounts  (- EUR 11 million),  partly  compensated  by  an  increase  in  the 
estimate  for  the  remaining  balance  of  the  Sugar  Restructuring  Fund  (+ EUR 27,2 million).  Overall 
the total increase in available assigned revenue is EUR 200,2 million. 

As a result, the total commitment appropriations requested for agricultural expenditure financed by 
the  EAGF  are  EUR 44 101 million,  lower  than  in  the  DB  2013  (- EUR 30 million),  resulting  in  a 
margin  under  the  EAGF  sub-ceiling  which  now  stands  at  EUR 838 million.  The  new  margin  for 
heading 2 in total is EUR 1 007 million. 

4 

5  

European  Agricultural  Guarantee  Fund  (EAGF)  expenditure,  including  EUR 27,2 million  commitment  and 
payment appropriations under title 11 Fisheries and Maritime Affairs as well as EUR 274,7 million commitment 
appropriations and EUR 251,7 million payment appropriations under title 17 Health and Consumer Protection. 
Chapter 11 03 (without technical assistance).  

5 

 
 
  
 
  
  
  
 
 
 
  
  
 
 
 
 
 
 
 
 
 
                                                 
2.2.2  Detailed Comments 

05 02 Interventions in agricultural markets (appropriations - EUR 41 million) 

needs in draft budget: 

appropriations requested in draft budget: 

EUR 3 212 million 

EUR 2 812 million 

estimated assigned revenue available in 2013 in draft budget: 

EUR 400 million 

needs after letter of amendment: 

appropriations requested after letter of amendment: 

EUR 3 271 million 

EUR 2 771 million 

estimated assigned revenue available in 2013 after letter of amendment: 

EUR 500 million 

In  general,  the  hypotheses  underlying  this  AL  1  confirm  the  assessment  at  the  moment  of  the  DB 
2013,  with  favourable  prospects  for  most  agricultural  markets.  The  modifications  proposed  by  this 
AL 1 are mostly of a technical nature and concern small amounts only. Overall needs for intervention 
measures on agricultural markets increase by EUR 59 million compared to the DB 2013. However, 
EUR 100 million of additional assigned revenues are estimated to be available for chapter 05 02, so 
that appropriations requested can be reduced by EUR 41 million compared to the DB 2013. 

The  most  important  modifications  are  briefly  explained  below.  A  table  with  the  full  set  of 
modifications (at the level of the budget article) can be found at the end of this section. 

As regards olive oil, following a fall of market prices below the trigger price, and in order to cope 
with high stocks in some Member Sates that affect the olive oil market throughout Europe, schemes 
for  private  storage  were  opened  in  February  20126  and  May  20127.  The  financial  impact  of  these 
schemes on the Draft Budget 2013 is estimated at EUR 17 million and will be financed from budget 
item 05 02 06 03 (with a p.m. in the DB 2013). 

For  fruit  and  vegetables,  estimated  needs  for  operational  programmes  of  producer  organisations 
(budget item 05 02 08 03) are somewhat higher (+ EUR 19 million) than estimated for the DB 2013 
following  an  updated  assessment  of  the  actual  uptake  of  the  measures,  taking  into  account  the 
estimated  financial  impact  of  the  revision  of  some  withdrawal  amounts  applying  as  from  1  July 
20128  and  of  the  possible  partial  reimbursement  by  the  EU  budget  of  national  financial  assistance 
granted  by  some  Member  States  according  to  Article  103e(1)  of  Regulation  (EC)  1234/2007. 
However,  the  appropriations  proposed  in  the  AL  1  are  actually  lower  than  in  the  DB  2013  by 
EUR 81 million because of EUR 100 million more revenue assigned to that item, reflecting updated 
revenue estimates. 

Provisional  execution  figures  for  2012  point  to  a  higher  implementation  of  the  national  support 
programmes in the wine sector than initially assumed for the DB 2013. In order to reflect that most 
recent new information, the AL 1 proposes + EUR 20 million more for budget item 05 02 09 08. 

For milk and milk products, the AL 1 proposes to increase appropriations by EUR 8 million for the 
school milk scheme (budget item 05 02 12 08) in line with provisional figures on execution in 2012 

6  

7  

8   

Commission Implementing Regulation (EU) No 111/2012 of 9 February 2012 opening the tendering procedure 
for aid for private storage of olive oil. 
Commission Implementing Regulation (EU) No 430/2012 of 22 May 2012 opening the tendering procedure for 
aid for private storage of olive oil. 
Commission Implementing Regulation (EU) No 701/2012 of 30 July 2012 amending Implementing Regulation 
(EU) No 543/2011 laying down detailed rules for the application of Council Regulation (EC) No 1234/2007 in 
respect of the fruit and vegetables and processed fruit and vegetables sectors. 

6 

 
 
  
 
                                                 
that point towards a stronger uptake of the scheme in Member States than in 2011. Accordingly, the 
assumptions of the DB 2013 have been reviewed and a higher amount is now proposed.  

For the beef sector, the estimated needs for export refunds on meat and live animals (budget items 
05 02 13 01 and 05 02 13 04) have been revised downwards by EUR 22 million reflecting the recent 
adjustment of the level of refund rates. No refunds are currently granted, so that the reduced amounts 
proposed in the AL 1 are only for payments on export certificates already issued. 

Appropriations  for  Article  05 02 15  (pigmeat,  eggs  and  poultry,  bee-keeping  and  other  animal 
products)  are  proposed  to  be  increased  by  EUR 10 million.  While  updated  estimates  for  export 
refunds on eggs (budget item 05 02 15 04) are lower by EUR 1 million due to a decrease in refund 
rates, needs for export refunds for poultry (budget item 05 02 15 05) have been revised upwards by 
EUR 9 million reflecting most recent information on the market situation for this sector. Finally, an 
amount  of  EUR 2 million  initially  requested  in  the  DB  2013  for  item  05 07 02  (Settlement  of 
disputes)  will  be  paid  from  budget  item  05 02 15 07  (Exceptional  market  support  measures) 
following the judgement of a Court of Justice case in favour of one Member State9. 

05 03 Direct Aids (appropriations - EUR 95 million) 

needs in draft budget: 

appropriations requested in draft budget: 

EUR 41 960 million 

EUR 41 027 million 

estimated assigned revenue available in 2013 in draft budget: 

EUR 933 million 

needs after letter of amendment: 

appropriations requested after letter of amendment: 

EUR 41 965 million 

EUR 40 932 million 

estimated assigned revenue available in 2013 after letter of amendment: 

EUR 1 033 million 

Compared  to  the  DB  2013,  appropriations  requested  for  chapter  05 03  are  revised  downwards  by 
EUR 95 million  with  the  AL  1.  This  change  is  mainly  the  result  of  an  increase  in  the  amount  of 
assigned  revenues  by  EUR 100,2 million,  while  the  revised  estimation  of  needs  shows  a  small 
increase  by  EUR 5,2 million.  The  most  significant  variations  affect  the  Single  Payment  Scheme 
(SPS) and the Single Area Payment Scheme (SAPS). 

The  AL  1  proposes  to  decrease  the  total  appropriations  of  the  SPS  (budget  item  05 03 01 01)  by 
EUR 105 million  compared  to  the  DB  2013.  As  already  mentioned  above,  the  revenue  assigned  to 
this  item  has  been  increased  by  EUR 100,2 million,  while  the  needs  have  been  reduced  by  around 
EUR 4,8 million. Compared to DB 2013, the modifications proposed by the AL 1 take into account 
provisional execution figures for 2012 as well as the authorisation granted to Italy for making some 
advance  payments  in  2012  from  the  SPS  envelope  of  the  budget  year  201310  following  an 
earthquake11. 

For  the  SAPS  (budget  item  05 03 01 01)  AL  1  proposes  to  increase  the  budget  appropriations  by 
EUR 20 million,  of  which  EUR 13 million  correspond  to  revised  assumption  on  execution  taking 
into  account  the  modification  of  the  agricultural  area  under  the  SAPS  in  one  Member  State  and 

9  

10  

11  

Commission Implementing Regulation (EU) No 660/2012 of 19 July 2012 on certain market support measures 
in the sector of poultry meat in Italy. 
The  direct  payment  envelopes  foreseen  in  the  annexes  to  Regulation  (EC)  No  73/2009  are  fixed  for  calendar 
years N with a budgetary effect normally foreseen in year N+1. Thus the calendar year 2012 envelope would 
under normal conditions be paid in budget year 2013. 
Commission  Implementing  Decision  C(2012)  5762  of  17  August  2012  authorising  for  2012  payment  of 
advances under the single payment scheme to the farmers in some areas in Italy affected by an earthquake.  

7 

 
 
  
 
                                                 
provisional figures from 2012. The remaining amount of EUR 7 million is due to the decision of one 
Member  State  not  to  implement  a  measure  for  specific  coupled  support  under  article  68  of 
Regulation (EC) No 73/2009 (budget item 05 03 01 05). 

The budget appropriations of the specific support under article 68 of Regulation (EC) No 73/2009 
are  proposed  to  be  decreased  by  – EUR 7 million  for  decoupled  support  (budget  item  05 03 01 05) 
and by – EUR 2 million for coupled support (budget item 05 03 02 44). The first figure corresponds 
to the decision of one Member State not to apply a measure under article 68, increasing the budget of 
the  SAPS  by  the  same  amount.  The  second  figure  also  corresponds  to  advance  payments  Italy  is 
allowed to make in 2012 from the direct aids envelope of budget year 2013 following an earthquake. 

There are some other changes for budget lines inside the chapter, but the variations are very small, in 
particular for lines related to coupled direct aids. A short description of the reasons can be found in 
the table at the end of this section. 

05 07 Audit of agricultural expenditure (appropriations + EUR 106 million) 

appropriations requested in draft budget: 

appropriations requested after letter of amendment: 

- EUR 47 million 

+ EUR 59 million 

Appropriations for chapter 05 07 01 need to be increased by EUR 108,3 million reflecting a positive 
correction  to  be  made  under  the  conformity  clearance  of  accounts  procedure  (budget  item 
05 07 01 07) following the Court of Justice judgement in case C-24/11P in favour of Spain. 

As regards budget item 05 07 01 06 related to accounting clearance, for which the DB 2013 amount 
was  – EUR 56 million  on  the  basis  of  the  average  execution  in  the  last  years  excluding  years 
characterised  by  extraordinary  circumstances,  the  AL  1  is  not  proposing  any  change  of 
appropriations despite the fact that the 2012 provisional budget execution figures show, for a second 
consecutive  year,  a  positive  amount.  Incorporating  2012  provisional  implementation  data  in  the 
calculation  of  the  average  would  have  implied  a  reduction  in  the  negative  amount  tabled  by  the 
Commission  in  its  DB  2013.  However,  at  this  stage  of  the  budgetary  procedure  for  2013  the 
Commission  prefers  not  to  up-date  the  calculation  of  the  statistical  average  of  previous  year's 
execution; but to do this only in the context of the DB 2014 after an in-depth analysis of the final 
execution figures. 

Finally, the AL 1 proposes to cancel the appropriations of EUR 2,2 million requested in DB 2013 for 
budget  item  05 07 02  (Settlement  of  disputes)  in  order  to  deal  with  the  judgement  of  the  Court  of 
Justice T-135/2007 in favour of Italy. The financial impact of that Court case will be financed from 
budget item 05 02 15 07 because of its origin (exceptional market support measures in the sector of 
poultrymeat). 

8 

 
 
  
 
Modifications at the level of the budget article 

Code 

Heading 

DB 2013 
(in  million 
EUR)  

AL 1 
(in  million 
EUR)  

difference 
(in  million 
EUR)  

Comments 

Interventions in agricultural markets 

05 02 01  Cereals 

05 02 03 

Refunds on non-
Annex 1 products 

0,1

10,0

0,2

8,0

+0,1

-2,0

05 02 06  Olive oil 

45,1

62,1

+17,0

05 02 08 

Fruits and 
vegetables 
--- Appropriations 

692,0

611,0

-81,0

--- Needs 

1 092,0

1 111,0

+19,0

05 02 09 

Products of the 
wine-growing sector 

1 051,6

1 071,6

+20,0

05 02 10 

Promotion 

59,0

61,0

+2,0

05 02 11 

Other plant 
products/measures 

226,0

233,0

+7,0

05 02 12 

Milk and milk 
products 

75,2

83,2

+8,0

05 02 13  Beef and veal 

29,1

7,1

-22,0

05 02 15 

Pigmeat, eggs and 
poultry, bee-keeping 
and other animal 
products 

104,0

114,0

+10,0

9 

on 

this 

small 

funds 

budget 

support 

increase 

following 

intervention 

Very 
line 
05 02 01 02  for  residual  quatities  of 
storage 
in 
cereals 
compared to DB 2013. 
Decrease due to lower export refund 
rates for egg products. 
Increase  for  private  storage  (line 
05 02 06 03) of EUR 17 million as a 
consequence  of  decisions  taken  by 
the  Commission  in  order  to  support 
markets 
in  some  EU  producer 
countries. 
Additional  needs  of  EUR 19 million 
resulting from increased demands for 
operational 
for  producer 
organisations  (05 02 08 03)  due  to 
higher  reimbursement  of  national 
aids  and  additional  expenditure  for 
market    support  (increased  amounts 
for  market  withdrawals).  A  higher 
amount  of  assigned  revenue  will  be 
used 
item 
for 
(+ EUR 100 million). 
Increase  of  EUR 20 million  for  the 
programmes 
national 
(05 02 09 08) 
revised 
assumptions  on  execution  of  the 
programmes. 
Increase  for  promotion  measures 
paid by Member States (05 02 10 01) 
related  to  the  net  effect  of  two  new 
promotion  decisions  in  2012  with  
increasing  effects  in  2013  and  of  a 
decrease  in  the  implementation  of 
previous decisions. 
POSEI  measures 
(05 02 11 04) 
increase by EUR 7 million for higher 
market  measures  for  POSEIMA  and 
POSEIDOM  based  on  execution  in 
2012. 
EUR 8 million  more 
for  schoolk 
milk scheme (05 02 12 08) following 
revised  figures  on  up-take  in  MS 
during 2012 
EUR 19 million  and  EUR 3 million 
less  needs  for  export  refunds  for 
meat  (05 02 13 01)  and  live  animals 
(05 02 13 04) resulting from updated 
estimates  for  quantities  and  export 
refund rates. 
for 
EUR 9 million  higher  needs 
export 
poultry 
(05 02 15 05),  EUR 2 million  more 
support 
for 

exceptional  market 

refunds 

for 

 
 
  
 
  
 
 
 
 
  
  
measures  (05 02 15 07)  following  a 
judgement of the Court of Justice in 
(T-135/2007)  and 
IT 
favour  of 
EUR 1 million 
export 
less 
refunds on eggs (05 02 15 04). 

for 

to 

IT 

for 

into 

increase 

Needs 
the  Single  Payment 
Scheme  (SPS;  05 03 01 01)  have 
been  reduced  by  EUR 4,8 million 
taking 
account  provsional 
execution  figures  for  2012  and  the 
authorisation  granted 
for 
making  advance  payments  in  2012 
the  2013  SPS  envelope 
from 
following an earthquake. 
Appropriations  for  the  Single  Area 
(SAPS: 
Payment 
Scheme 
by 
05 03 01 02) 
EUR 20 million  taking  into  account 
the  change  in  the  agricultural  area 
under  SAPS  in  one  Member  State, 
for 
provsional  execution 
figures 
transfer  of 
2012  as  well  as  a 
EUR 7 million 
the  specific 
from 
decoupled  support  under  Article  68 
(05 03 01 05) to the SAPS. 
Furthermore,  there  is  an  increase  in 
assigned 
for  SPS  by 
revenue 
EUR 100,2 million. 
Variations  due  to  a  change  in  the 
assumptions for needs: 
-  Decrease  of  EUR 1 million  on 
budget  line  05 03 02 13  (Sheep  and 
goat premium) 
-  Decrease  of  EUR  1  million  for 
POSEI  line  (05 03 02 50)  linked  to 
POSEIDOM,  whereas  the  line  for 
the  Aegean  Sea 
the 
(05 03 02 52) 
by 
increases 
EUR 1 million.  
- The Specific Support under Article 
68 
(05 03 02 44)  decreases  by 
EUR 2 million  linked  to  the  2012 
payment of advances by IT from the 
2013  direct  payment 
envelope 
following an earthquake. 

islands 

in 

reflecting 

Increase of appropriations for budget 
item  05 07 01 07 
the 
financial  impact  of  a  judgement  of 
the  Court  of  Justice  in  favour  of  ES 
(C-24/11P). 
Decrease 
EUR 2,2 million 
because  the  payment  linked  to  a 
Court of Justice judgement in favour 
of  IT  (T-135/2007)  will  be  made 
from budget item 05 02 15 07. 

by 

Direct Aids  

05 03 01 

Decoupled direct 
aids 

--- Appropriations 

38 168,0

38 076,0

-92,0

--- Needs 

39 100,8

39 109,0

-8,2

05 03 02  Other direct aids 

2 857,9

2 854,9

-3,0

05 07 01 

Control of 
agricultural 
expenditure 

Audit of agricultural expenditure 

-49,2

59,1

+108,3

05 07 02 

Settlement of 
disputes 

2,2

p.m.

-2,2

10 

 
 
  
 
  
  
 
 
 
  
  
 
 
2.3. 

International Fisheries Agreements 

As foreseen by point B of Annex II to the Interinstitutional Agreement (IIA), the Commission has 
examined the most recent information available concerning fisheries agreements. To reflect the latest 
situation,  i.e.  the  recent  conclusion  of  bilateral  agreements  with  Greenland12,  Madagascar  and 
Kiribati13  with  financial  contributions  above  previous  levels,  the  Commission  proposes  to  increase 
commitment  and  payment  appropriations  for  budget  article  11 03 01  International  Fisheries 
Agreements by EUR 18,5 million. 

It is also proposed to decrease the reserve line 40 02 41 accordingly, reflecting the conclusion of the 
above  mentioned  agreements,  the  latest  analysis  on  the  outstanding  commitments  (RAL)  and 
amounts  estmated  for  additional  catches  as  well  as  updated  information  on  fisheries  agreements 
under  negotiation  or  under  study,  by  EUR 13,8 million  for  both  commitment  and  payment 
appropriations. 

2.4. 

Changes to the Nomenclature and Budgetary Remarks 

The budgetary remarks for the following chapters, articles and items have been updated (explanation 
in brackets): 
Chapter 05 02 – Interventions in agricultural markets (figures for assigned revenues) 

Chapter 05 03 – Direct aids (figures for assigned revenues) 

Article 11 03 01 International fisheries agreements (change in budgetary remarks: table) 

Item 6 7 0 1 – Clearance of EAGF accounts – Assigned revenue (figures for assigned revenue) 

Item 6 7 0 2 – EAGF irregularities – Assigned revenue (figures for assigned revenue)  

Item 6 7 0 3 – Superlevy from milk producers – Assigned revenue (figures for assigned revenue) 

Item 6 8 0 1 – Temporary restructuring amounts – Assigned revenue (figures for assigned revenue) 

12  

13  

The  Council  Decision  on  the  provisional  application  (as  from  1  January  2013)  of  the  agreement  has  been 
adopted on 16 July 2012 (not yet published in the OJ).  
The Commission estimates  that the Council Decisions on the provisional application of these two agreements 
will be in force as from 1 January 2013. 

11 

 
 
  
 
 
                                                 
3. 

SUMMARY TABLE BY HEADING OF THE FINANCIAL FRAMEWORK 

Financial framework 
Heading/subheading 

1. SUSTAINABLE GROWTH 

2013 Financial Framework 

Draft Budget 2013 

Amending Letter No 1/2013 

DB 2013 + AL No 1/2013 

CA 

PA 

CA 

PA 

CA 

PA 

CA 

PA 

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

15 623 000 000

54 524 000 000

Total 

70 147 000 000

Margin1 

16 032 047 846

13 522 811 245

16 032 047 846

13 522 811 245 

54 498 949 037

48 975 034 163

70 530 996 883

62 527 845 408

116 003 117   

54 498 949 037

48 975 034 163 

70 530 996 883

62 527 845 408 

116 003 117   

2. PRESERVATION AND 
MANAGEMENT OF NATURAL 
RESOURCES 
Of which market related expenditure and 
direct payments 

48 574 000 000

44 130 348 610

44 112 931 204

-29 800 000

-29 800 000

44 100 548 610

44 083 131 204 

60 307 511 416

57 964 879 132

-25 070 000

-25 070 000

60 282 441 416

57 939 809 132 

981 488 584   

1 006 558 584   

3. CITIZENSHIP, FREEDOM, 
SECURITY AND JUSTICE 
3a. Freedom, Security and Justice 

3b. Citizenship3 

Total 

61 289 000 000

Margin2 

1 661 000 000

715 000 000

Total 

2 376 000 000

Margin    

1 392 227 200

689 414 000

928 328 376

646 271 750

2 081 641 200

1 574 600 126

294 258 800   

4. EU AS A GLOBAL PLAYER4 

9 595 000 000

9 467 168 711

7 311 588 051

5. ADMINISTRATION5 

Margin 

Margin 

9 095 000 000

8 544 418 496

8 545 518 496

636 581 504

391 946 289

1 392 227 200

928 328 376 

689 414 000

646 271 750 

2 081 641 200

1 574 600 126 

294 258 800   

9 467 168 711

7 311 588 051 

391 946 289

8 544 418 496

8 545 518 496 

636 581 504

TOTAL 

152 502 000 000

143 911 000 000

150 931 736 706

137 924 431 213

-25 070 000

-25 070 000

150 906 666 706

137 899 361 213 

Margin    

2 420 378 294

6 182 568 787

 2 445 448 294

6 207 638 787 

1  The European Globalisation adjustment Fund (EGF) is not included in the calculation of the margin under Heading 1a (EUR 500 million. 
2  After the transfer from modulation to Rural Development and from cotton and wine for restructuring in the respective regions (EUR 3 635,0 million). 
3  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). 
4  The 2013 margin for Heading 4 does not take into account the appropriations related to the Emergency Aid Reserve (EUR 264,1 million). 
5  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 86 million for the 

staff contributions to the pensions scheme. 

EN 

12 

EN