DRAFT AMENDING BUDGET N° 6 TO THE GENERAL BUDGET 2012 GENERAL STATEMENT OF REVENUE STATEMENT OF EXPENDITURE BY SECTION Section III – Commission
Date: 2012-10-23
Institutions: Directorate-General for Budget, European Commission
Subjects: European Commission, amending budget, budgetary expenditure, budgetary resources, draft budget (EU)

EUROPEAN 
COMMISSION 

Strasbourg, 23.10.2012 
COM(2012) 632 final 

DRAFT AMENDING BUDGET N° 6 
TO THE GENERAL BUDGET 2012 

GENERAL STATEMENT OF REVENUE 

STATEMENT OF EXPENDITURE BY SECTION 
Section III – Commission 

EN 

   EN 

 
 
 
 
  
 
 
DRAFT AMENDING BUDGET N° 6 
TO THE GENERAL BUDGET 2012 

GENERAL STATEMENT OF REVENUE 

STATEMENT OF EXPENDITURE BY SECTION 
Section III – Commission 

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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  2012  adopted  on 
1 December 20112, 

the amending budget No 1/20123 adopted on 20 April 2012, 

the amending budget No 2/20124, adopted on 12 June 2012, 

the amending budget No 3/20125, adopted on 5 July 2012, 

the draft amending budget No 4/20126, adopted on 20 June 2012, 

the draft amending budget No 5/20127, adopted on 19 September 2012, 

The  European  Commission  hereby  presents  to  the  budgetary  authority  the  Draft  Amending 
Budget No 6 to the 2012 budget. 

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 this statement is attached for information as a budgetary annex. 

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2 
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4  
5  
6  
7  

OJ L 248, 16.9.2002, p. 1. 
OJ L 56, 29.2.2012, p. 1. 
OJ L 184, 13.7.2012, p. 1. 
OJ L 214, 10.8.2012, p. 1. 
OJ L 221, 17.8.2012, p. 1. 
COM(2012) 340. 
COM(2012) 536. 

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TABLE OF CONTENTS 

1. 

INTRODUCTION ....................................................................................................................................................... 5 

2.  REVENUE ................................................................................................................................................................... 5 

2.1. 
2.2. 

REVISION OF OWN RESOURCES ............................................................................................................................ 5 
OTHER REVENUE .................................................................................................................................................. 6 

3.  REINFORCEMENT OF PAYMENT APPROPRIATIONS................................................................................... 6 

3.1. 
3.2. 
3.3. 
3.4. 
3.5. 

HEADING 1A COMPETIVENESS FOR GROWTH AND EMPLOYMENT......................................................................... 7 
HEADING 1B COHESION FOR GROWTH AND EMPLOYMENT................................................................................. 10 
HEADING 2 PRESERVATION AND MANAGEMENT OF NATURAL RESOURCES ....................................................... 12 
HEADING 3A FREEDOM, SECURITY AND JUSTICE................................................................................................ 13 
HEADING 4 EU AS A GLOBAL PLAYER................................................................................................................ 14 

4.  REDUCTIONS IN COMMITMENT AND PAYMENT APPROPRIATIONS ................................................... 15 

5. 

SUMMARY TABLE BY HEADING OF THE FINANCIAL FRAMEWORK................................................... 18 

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1. 

INTRODUCTION  

Draft Amending Budget (DAB) No 6 for the year 2012 concerns the following: 

–  the usual update in the forecast of revenue after the latest revision of the forecasts of own resources 

and other revenue; 

–  an increase of payment appropriations of nearly EUR 9,0 billion across headings 1a, 1b, 2, 3a and 4 
of the multi-annual financial framework, with the aim of meeting outstanding needs to the end of 
the year, so that commitments can be honoured, financial penalties avoided, and beneficiaries can 
receive the funds envisaged by the agreed EU policies, for which the commitments were authorised 
in  previous  annual  budgets.  The  Commission  has  identified  some  sources  of  redeployment  for  a 
total of EUR 47,4 million; 

–  a reduction in the level of commitment appropriations in the budget of EUR 133,4 million, to take 
account of the latest state of implementation and revised assessments of real needs to the year end. 

Variations in own resources, together with a significant increase in the revenue from fines and interest 
payment of EUR 3 525 million, lead to a total net increase in revenue of EUR 3 080,8 million, which 
will lessen the effect of the DAB 6 on Member States' GNI-based contributions. 

The  total  amount  of  payment  appropriations  requested  is  EUR 138 752,8 million,  corresponding  to 
1,08 %  of  the  European  Union's  GNI.  This  leaves  a  margin  of  EUR 3 451,4 million  under  the  2012 
ceiling for payments of the multi-annual financial framework (MFF). 

2. 

REVENUE 

2.1. 

Revision of Own Resources 

In accordance with Article 16 of Council Regulation (EC, Euratom) No 1150/2000 of 22 May 20008, 
the Commission has revised the forecasts for own resources. This refers in particular to VAT (value 
added tax) and GNI (gross national income) balances and to traditional own resources (TOR). 

As far as the VAT and GNI own resources balances of previous years are concerned, and on the basis 
of the available information, the Commission proposes to enter an amount of EUR 497,3 million. This 
increase relates to chapters 319 and 3210 of the revenue side of the budget. 

At this stage the calculations for Member States' balances are still provisional because of the on-going 
verification of VAT and GNI data. This may lead the Commission to revise the figures in the course 
of the procedure for this DAB. 

The  Commission  also  proposes  to  decrease  TOR  by  EUR 950 million  in  chapter  1211  of  revenue  to 
reflect  the  trend  in  custom  duties  made  available  to  the  budget  up  to  now.  If  new  data  for  the  last 
quarter  of  the  year  implies  significant  changes  to  this  estimation,  the  Commission  will  revise  its 
figures in the course of the budgetary procedure. 

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9 

10 

11 

OJ L 130, 31.5.2000, p. 1. 
Balances and adjustment of balances based on VAT for the previous financial years resulting from application of 
article 10(4), (5) and (8) of Regulation (EC, EURATOM) No 1150/2000. 
Balances and adjustment of balances based on gross national income/product for the previous financial years as a 
result of the application of article 10(6) to (8) of Regulation (EC, EURATOM) No 1150/2000. 
Customs duties and other duties referred to in article 2(1)(a) of Decision 2007/436/EC. 

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2.2. 

Other Revenue 

Taking into account the amounts that at this stage of the year are cashed or will probably be cashed, it 
is proposed to increase the initial forecasts by a net amount of EUR 3 533,5 million. The detail by line 
is shown in the table below. 

Revenue lines 

Budget 2012 

DAB 6/2012 

New amount 

5 2 0 0 — Revenue  from  investments  or  loans  granted,  bank 
and other interest on the institutins'accounts 

5 2 1 0 — Revenue  from  investments  or  loans  granted,  bank 
and  other  interest  on  the  accounts  of  organisations  receiving 
subsidies transferred to the Commission 

Sub-total ⎯ Revenue from investments or loans granted, 
bank and other interest

7 0 0 0 — Interest due on late payments into the accounts held 
with the treasuries of the Member States 

6 500 000

3 500 000 

10 000 000

10 000 000

5 000 000 

15 000 000

16 500 000

8 500 000 

25 000 000

5 000 000 

155 000 000 

160 000 000

7 0 1 — Interest on late payments and other interest on fines 

15 000 000 

265 000 000 

280 000 000

7 1 0 — Fines, periodic penalty payments and other penalties 

100 000 000 

3 075 000 000 

3 175 000 000

7 1 2 — Penalty  payments  and  lump  sums  imposed  on  a 
Member State for not complying with a judgment of the Court 
of  Justice  of  the  European  Union  on  its  failure  to  fulfil  an 
obligation under the Treaty 

p.m.

30 000 000 

30 000 000

Sub-total ⎯ Interest on late payment and fines

120 000 000

3 525 000 000 

3 645 000 000

Total

136 500 000

3 533 500 000 

3 670 000 000

3. 

REINFORCEMENT OF PAYMENT APPROPRIATIONS 

In September, all Commission services were asked to update their forecasts of needs until the end of 
2012, and submit their requests to adjust payment appropriations. The revised elements form the basis 
of 
the  so-called  Global  Transfer  (DEC 30/2012),  aimed  at  adjusting  authorised  payment 
appropriations across budget lines, according to the latest updated needs. 

In  preparing  the  Global  Transfer  for  2012,  the  Commission  sought  to  match  increased  needs  for 
payment  appropriations  on  some  budget  lines,  with  amounts  on  other  lines  which  would  otherwise 
remain  unused,  with  a  view  to  achieving  full  implementation.  The  proposal  concerns  an  amount  of 
EUR 419,7 million, corresponding to some 0,3 % of the total authorised payments in the 2012 budget. 
In total, 110 budget lines are concerned (65 for reinforcement and 45 for reductions). 

The corresponding value of the Global Transfer in 2011 was EUR 719,2 million, and in 2010 it was 
EUR 1 792 million. The relatively low amount this year reflects the very tight situation for payments 
in the 2012 budget, with only EUR 419,7 million available for redeployment, and so it has only been 
possible to meet part of the requests for reinforcement, within the limits of this amount. As already 
forecast and signalled during the course of the year, these are simply too great to be accommodated 
through redeployment within the appropriations available in the 2012 budget. Therefore recourse must 
be made to an amending budget. 

The request should also be seen in the context of an adopted budget for 2012 which set the level of 
payment  appropriations  EUR 3,6 billion  below  the  Commission's  Draft  Budget  proposal,  creating  a 
very tight situation for payments from the beginning of the year. 

The  Commission  is  therefore  obliged  to  have  recourse  to  the  joint  statement  agreed  during  the 
conciliation on the 2012 budget, and which was part of the joint conclusions of 19 November 2011. In 

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this statement the Council and the European Parliament asked the Commission "to request additional 
payment  appropriations  in  an  amending  budget  if  the  appropriations  entered  in  the  2012  budget  are 
insufficient to cover expenditure". For their part, the Council and the European Parliament undertook 
to" take position on any draft amending budget as quickly as possible in order to avoid any shortfall in 
payment appropriations." 

3.1. 

Heading 1a Competiveness for Growth and Employment 

The  total  request  for  increase  in  heading  1a  is  EUR 625,3 million,  across  eleven  budget  lines,  as 
follows: 

Budget Line 

Heading 

Payments (EUR) 

02 04 01 01  

Space Research 

02 04 01 02  

Security Research 

02 05 01  

European satellite navigation programmes (EGNOS and Galileo) 

04 05 01 

European Globalisation Adjustment Fund (EGF) 

08 02 01 

Cooperation — Health 

08 04 01 

Cooperation — Nanosciences,  nanotechnologies,  materials  and  new  production 
technologies 

08 06 01 

Cooperation — Environment (including climate change) 

08 10 01 

Ideas 

09 04 01 01 

Support  for  research  cooperation  in  the  area  of  information  and  communication 
technologies (ICTs) 

15 02 22 

Lifelong Learning Programme 

15 07 77 

People 

43 000 000 

35 000 000 

4 850 000 

17 657 535 

79 790 000 

63 906 000 

39 113 000 

30 000 000 

30 000 000 

180 000 000 

102 000 000 

Total 

625 316 535 

02 04 01 01 — Space Research (+ EUR 43 million) 

The  implementation  of  payment  appropriations  on  this  budget  item  stood  at  94,6 %  at  mid-October 
2012. The reinforcement is needed to cover outstanding commitments as follows: 

–  Interim  and  final  payments  requested  by  beneficiaries,  based  on  the  grant  agreements  already 
signed following the calls for proposals of 2007, 2008, 2009 and 2010. These are contractual and 
legal obligations (part of the RAL); 

–  Pre-financing payments on the RAL of grant agreements already signed (7 projects) under the call 
for  proposals  FP7-SPACE-2011-1.  The  deadline  to  sign  all  the  grant  agreements  of  this  call  is 
before the end of 2012; 

–  Pre-financing payments on the new grant agreements to be signed under the call for proposals FP7-
SPACE-2012-1.  The  "time  to  grant"  should  be  reached  before  the  end  of  2012  (representing 
42 projects). 

02 04 01 02 — Security Research (+ EUR 35 million) 

The  implementation  of  payment  appropriations  on  this  budget  item  stood  at  100 %  at  mid-October. 
The reinforcement is needed to cover outstanding commitments as follows: 

–  Interim  and  final  payments  requested  by  beneficiaries,  based  on  the  grant  agreements  already 
signed following the calls for proposals of 2007, 2008, 2009 and 2010. These are contractual and 
legal obligations (part of the outstanding commitments or "RAL"); 

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–  Pre-financing payments on the RAL of grant agreements already signed (33 projects) under the call 
for proposals FP7-SEC-2011-1. The deadline to sign all the grant agreements of this call is before 
the end of 2012; 

–  Pre-financing payments on the new grant agreements to be signed under the call for proposals FP7-
SEC-2012-1.  The  "time  to  grant"  should  be  reached  before  the  end  of  2012  (representing 
7 projects). 

02 05 01 — European 
(+ EUR 4,9 million) 

satellite 

navigation 

programmes 

(EGNOS 

and  Galileo) 

The  request  for  reinforcement  amounts  to  EUR 4,9 million,  to  enable  the  Commission  to  fulfil  its 
contractual  obligations  (payment  of  outstanding  commitments)  under  the  Delegation  Agreement 
signed  with  the  European  Space  Agency  (ESA).  An  amount  of  EUR 17,2 million  has  already  been 
requested in the Global Transfer. 

The payment allocations will be used to meet the second yearly payment contracted with ESA and to 
finance  the  additional  procurements  already  launched  in  2011  (8 additional  satellites  +  Ariane  5 
adaptation + fees). These are legal obligations. 

04 05 01 — European Globalisation Adjustment Fund (EGF) (+ EUR 17,7 million) 

The  payment  appropriations  of  EUR 50 million  voted  on  the  EGF  line  in  the  2012  budget  are  now 
exhausted. The reinforcement is needed to cover the payments for five cases for which the proposal to 
mobilise  the  EGF  will  be  presented  by  end  October/early  November.  The  cases  concerned  cover 
applications from Denmark, Spain, Italy, Austria, Romania and Finland. 

08 02 01 — Cooperation — Health (+ EUR 79,8 million) 

Implementation  of  payments  on  this  line  had  reached  97,1 %  at  mid-October.  The  reinforcement  is 
needed  to  cover  interim  and  final  payments  related  to  previous  calls  for  proposals  (FP-7-Health-
2007/2008/2009/2010),  for  an  amount  of  EUR 9,8 million.  This  will  cover  payments  to  40  projects 
and avoid or minimise payment of late interest. 

A further EUR 70 million is related to the call for proposal FP-7 Health-2012-Innovation-1 2012. This 
call  was  launched  in  July  2011,  with  deadlines  for  submissions  of  4  October  2011  and  8  February 
2012 (for the 2-stage procedure). The pre-financing to the selected projects is now due to avoid any 
delay in the implementation of these research projects. 

08 04 01 — Cooperation  —  Nanosciences,  nanotechnologies,  materials  and  new  production 
technologies (+ EUR 63,9 million) 

The implementation of this line at mid-October amounted to 83,4 %. The requested reinforcement will 
cover the needs for interim and final payments related to previous calls for proposals between 2009 
and 2011. Some 35 grant agreements will benefit, avoiding or minimising payment of late interest. 

Pre-financing  payments  related  to  calls  for  proposals  2012  (FP7-NMP-2012-LARGE,  FP7-NMP-
2012-SMALL and FP7-NMP-2012-SME) are also due, to avoid  any delay  in  the  implementation of 
these research projects.  

08 06 01 — Cooperation — Environment (including climate change) (+ EUR 39,1 million) 

This adjustment concerns the pre-financing payments related to the calls for proposals 2012 and more 
specifically  the  FP7-ENV-2012-Two  Stage  Calls.  The  timing  of  evaluation  and  negotiations  was 
adapted  in  order  to  meet  the  new  targets  adopted  in  2012  (260  days  from  Call  closure  date  to  the 

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signature of 75 % of grant agreements). Accordingly, at least 75 % of the grant agreements negotiated 
should be signed by end of October and 95-100 % by the end of the year. According to the Financial 
Regulation, the pre-financing payments should be made within 45 days following the signature of the 
grant agreements. 

The  additional  EUR 39,1 million  is  needed  in  order  to  make  the  pre-financing  payments  of 
approximately 15 grant agreements (out of 43 currently negotiated for this Call). This reinforcement is 
also essential in order to avoid any delay in the implementation of these research projects. 

08 10 01 — Ideas (+ EUR 30 million) 

The  requested  reinforcement  concerns  pre-financing  payments  related  to  calls  for  proposals  2012 
(Advanced  and  Starting  Grants  2012).  The  timing  of  evaluation/negotiation  of  these  calls  has  been 
advanced. Around 35-40 pre-financing payments are to be made with these additional appropriations. 
This reinforcement will also avoid any delay in the implementation of these research projects.  

09 04 01 01 — Support for research cooperation in the area of information and communication 
technologies (ICTs) (+ EUR 30 million) 

The current progress in negotiations for FP7 ICT Cooperation projects selected in response to Call 8 
requires carrying out more pre-financing payments than originally expected for projects scheduled to 
start between September and December 2012. In particular, it is expected to process 231 pre-financing 
payments  related  to  2012  calls  before  the  year-end.  In  addition,  235  cost  claims  related  to  projects 
selected  in  previous  calls  will  have  to  be  paid  before  the  end  of  the  year.  The  additional 
EUR 30 million requested are the strict minimum to fulfil the obligations vis-à-vis third parties. The 
rate of implementation at mid-October (70,0 %) must be seen in the context of accelerating payments 
as the year progresses, and the payments remaining on the line will be exhausted by early December. 

15 02 22 — Lifelong Learning Programme (+ EUR 180 million) 

The  available  budget  for  the  Lifelong  Learning  programme  cannot  cover  the  needs  in  payment 
appropriations  until  the  year-end.  As  mid-October  implementation  of  payments  has  already  reached 
99,4 %.  It  is  currently  impossible  to  proceed  with  the  intermediate  payments  (EUR 160,7 million) 
which are due according to the contractual provisions of the agreements with the national agencies. A 
further  EUR 19,3 million  is  needed  to  cover  pre-financing,  intermediate  and  final  payments  of 
individual projects managed by the Education, Audiovisual and Culture Executive Agency (EACEA).  

15 07 77 — People (+ EUR 102 million) 

The  reinforcement  will  allow  the  Research  Executive  Agency  (REA)  to  cover  the  payments  to  be 
made before the end of 2012. Implementation had reached 84,9 % at mid-October. 

More  than  70 %  of  the  amount  requested  concerns  payments  against  the  outstanding  commitments 
made before 2012 (RAL). The rest will cover the pre-financing payments on the new grant agreements 
to be signed under the 2012 calls for proposals and which have a time to grant target to be reached 
before the end of 2012. 

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3.2. 

Heading 1b Cohesion for Growth and Employment 

The total request for increase in heading 1b is EUR 7 170,5 million, across fourteen budget lines, as 
follows: 

Budget Line 

Heading 

04 02 01  

Completion of the European Social Fund (ESF) — Objective 1 (2000 to 2006) 

04 02 02  

Completion  of  the  special  programme  for  peace  and  reconciliation  in  Northern 
Ireland and the border counties of Ireland (2000 to 2006) 

Payments (EUR) 

189 000 000 

9 000 000 

04 02 04 

Completion of the European Social Fund (ESF) — Objective 2 (2000 to 2006) 

2 000 000 

04 02 17 

European Social Fund (ESF) — Convergence 

04 02 19 

European Social Fund (ESF) — Regional competitiveness and employment 

04 02 20 

European Social Fund (ESF) — Operational technical assistance (2007 to 2013) 

13 03 01 

13 03 04 

Completion  of  European  Regional  Development  Fund  (ERDF) — Objective  1 
(2000 to 2006) 

Completion  of  European  Regional  Development  Fund  (ERDF) — Objective  2 
(2000 to 2006) 

13 03 13 

Completion of Interreg III Community initiative (2000 to 2006) 

13 03 16 

European Regional Development Fund (ERDF) — Convergence 

1 837 000 000 

1 060 000 000 

3 500 000 

790 000 000 

80 000 000 

50 000 000 

1 400 000 000 

13 03 19 

European Regional Development Fund (ERDF) — European territorial cooperation 

400 000 000 

13 04 01 

Cohesion Fund — Completion of previous projects (prior to 2007) 

13 04 02 

Cohesion Fund 

250 000 000 

1 100 000 000 

Total 

7 170 500 000 

Regarding  the  completion  of  the  programmes  of  the  previous  period  2000-2006,  the  Commission  is 
ready  to  proceed  with  payments  of  the  final  balance  for  many  programmes,  but  the  corresponding 
appropriations on the various budget lines concerned are either fully exhausted or will be exhausted 
soon.  Therefore  it  is  necessary  to  reinforce  payment  appropriations  in  Budget  2012  as  the 
corresponding appropriations have not been budgeted in the Draft Budget 2013. 

Regarding the new programmes 2007-2013, payment applications received from Member States on 15 
October  are  higher  than  the  level  of  payment  applications  received  last  year  at  the  same  time. 
Furthermore, the Commission had also to charge on Budget 2012, payment applications from last year 
that  could  have  been  paid  in  2011  if  the  appropriations  had  been  available.  As  the  available 
appropriations are only slightly higher than last year, reinforcing payment appropriations is necessary 
to meet the legal obligations and to avoid an excessive amount of unpaid payment applications at the 
end of the year that might not be properly managed in 2013. 

04 02 01 — Completion  of  the  European  Social  Fund  (ESF) — Objective  1  (2000  to  2006) 
(+ EUR 189 million) 

Already  at  the  start  of  October  the  payments  on  this  line  were  almost  fully  exhausted 
(99,8 % implementation).  The  additional  amount  is  required  to  cover  payment  needs  related  to 
programme  closures  and  represents  only  uncontested  amounts  resulting  from  a  detailed  analysis  of 
closure documents. 

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04 02 02 — Completion  of  the  special  programme  for  peace  and  reconciliation  in  Northern 
Ireland and the border counties of Ireland (2000 to 2006) (+ EUR 9 million) 

The  additional  payment  appropriations  required  on  this  line  are  necessary  in  order  to  cover  closure 
payment for the closure of this programme by the end of the year. No payment appropriations were 
budgeted on this line in 2012. 

04 02 04 — Completion  of  the  European  Social  Fund  (ESF) — Objective  2  (2000  to  2006) 
(+ EUR 2 million) 

The  available  appropriations  on  this  budget  line  were  nearly  exhausted  mid-October  (less  than 
EUR 2 million  left).  An  additional  reinforcement  of  EUR 2 million  is  needed  in  order  to  pay  the 
balance for two programmes ready to be closed. 

04 02 17 — European Social Fund (ESF) — Convergence (+ EUR 1 837 million) 

The  estimate  of  payment  needs  on  this  line  has  been  revised  upwards  following  the  Commission's 
the  European  Social  Fund.  In  mid-October, 
latest  analysis  of 
implementation reached 96,3 % of available appropriations and additional payment appropriations are 
required to cover needs before the year end and full implementation will be reached soon. At the same 
time last year, implementation stood at 74 % of the year-end outturn. 

implementation  concerning 

04 02 19 — European  Social  Fund 
(+ EUR 1 060 million) 

(ESF) — Regional  competitiveness  and  employment 

The  estimate  of  payment  needs  on  this  line  has  been  revised  upwards  following  the  Commission's 
latest  analysis  of  implementation  concerning  the  European  Social  Fund.  Since  the  beginning  of 
October, the appropriations on this budget line are fully exhausted, and pending payment claims are 
blocked awaiting a reinforcement of this budget line. The pending claims concern 14 Member States, 
and in particular Germany and the United Kingdom. 

04 02 20 — European  Social  Fund  (ESF) — Operational  technical  assistance  (2007  to  2013) 
(+ EUR 3,5 million) 

Mid-October  implementation  on  this  line  reached  99,6 %  of  available  appropriations.  Additional 
payment appropriations are required to cover needs up to the end of the year. 

13 03 01 — Completion  of  European  Regional  Development  Fund  (ERDF) — Objective  1  (2000 
to 2006) (+ EUR 790 million) 

The closure of operational programmes relating to this budget line has been progressing very rapidly. 
Mid-October,  implementation  reached  95,7 %  of  available  appropriations.  The  additional  amount  is 
required  to  cover  payment  needs  related  to  programme  closures  and  represents  only  uncontested 
amounts resulting from a detailed analysis of closure documents. 

13 03 04 — Completion  of  European  Regional  Development  Fund  (ERDF) — Objective  2 
(+ EUR 80 million) 

Mid-October implementation as a percentage of available appropriations stood at 94,2 %. Closures are 
progressing  rapidly  and  the  remaining  payment  appropriations  will  not  be  sufficient  to  cover 
outstanding  needs  relating  to  the  uncontested  amounts  resulting  from  a  detailed  analysis  of  closure 
documents. Additional payment appropriations are therefore  required  in order  to proceed with these 
closure payments. 

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13 03 13 — Completion of Interreg III Community initiative (2000 to 2006) (+ EUR 50 million) 

Mid October payment appropriations on this line were completely exhausted. The additional amount 
is  required  to  cover  payment  needs  related  to  programme  closures  and  represents  only  uncontested 
amounts resulting from a detailed analysis of closure documents. 

13 03 16 — European 
(+ EUR 1 400 million) 

Regional 

Development 

Fund 

(ERDF) — Convergence 

The  estimate  of  payment  needs  on  this  line  has  been  revised  upwards  following  the  Commission's 
latest analysis of implementation concerning the European Regional Development Fund. The results 
of  this  analysis  indicate  that  payment  claims  that  are  expected  to  be  received  from  Member  States 
before  the  year  end  substantially  exceed  the  available  appropriations.  The  higher  than  expected 
payment needs are also due to the fact that some of the payment requests received in 2011 could only 
be paid in 2012 (some EUR 4,6 billion for this line). Mid-October, the implementation of payments on 
this line stood at 77,5 %, to be compared with 68,4 % last year at the same time. 

13 03 19 — European  Regional  Development  Fund  (ERDF) — European  territorial  cooperation 
(+ EUR 400 million) 

In early October implementation on this line already reached 99,7 % of available appropriations. At 
the same time last year implementation stood at 60 % of year-end outturn. Additional appropriations 
are required to cover upcoming payment requests from Member States. 

13 04 01 — Cohesion  Fund — Completion 
(+ EUR 250 million) 

of 

previous 

projects 

(prior 

to 

2007) 

The higher than expected payment needs are due principally to the fact that the closure of Cohesion 
Fund projects has been progressing at a rapid pace this year and forecasts indicate that this trend is set 
to  continue.  Mid-October  implementation  of  payment  appropriations  on  this  line  reached  92,9 %  of 
available appropriations (as compared with only 52 % at the same time last year). 

13 04 02 — Cohesion Fund (+ EUR 1 100 million) 

The  estimate  of  payment  needs  on  this  line  has  been  revised  upwards  following  the  Commission's 
latest analysis of implementation concerning the Cohesion Fund. The results of this analysis indicate 
that  payment  claims  that  are  expected  to  be  received  from  Member  States  substantially  exceed  the 
available appropriations. Mid-October implementation of payment appropriations on this line already 
reached 76,2 % which is substantially higher than the level reached at the same time last year (48 %) 
and further payment applications are expected. 

3.3. 

Heading 2 Preservation and Management of Natural Resources 

The total request for increase in heading 2 is EUR 1 169 million, across three budget lines, as follows: 

Budget Line 

05 04 02 01 

Completion of the European Agricultural Guidance and Guarantee Fund, Guidance 
Section — Objective 1 regions (2000-2006) 

Heading 

05 04 05 01 

Rural development programmes 

17 04 01 01  Animal  disease  eradication  and  monitoring  programmes  and  monitoring  of  the 
physical  conditions  of  animals  that  could  pose  a  public  health  risk  linked  to  an 
external factor — New measures 

Payments (EUR) 

111 000 000 

1 041 000 000 

17 000 000 

Total 

1 169 000 000 

12 

 
 
  
 
05 04 02 01 — Completion  of  the  European  Agricultural  Guidance  and  Guarantee  Fund, 
Guidance Section – Objective 1 regions (2000-2006) (+ EUR 111 million) 

The available payment appropriations will be insufficient to make all the closure payments foreseen in 
2012.  This  is  due  to  the  closure  of  important  programmes  in  2012,  notably  for  Spain,  Italy  and 
Portugal, which are already at a very advanced stage of the closure process. 

05 04 05 01 — Rural development programmes (+ EUR 1 041 million) 

The final payments to be made on the 2012 budget under the Rural Development programmes relate 
to Member States' third quarter expenditure declarations that are to be transmitted to the Commission 
by  10  November  at  the  latest.  Revised  forecasts,  requested  by  the  Commission  from  the  Member 
States,  and  received  by  the  beginning  of  September,  indicate  that  payment  appropriations  for  Rural 
Development programmes 2007-2013 will be insufficient to cover needs. However, over the past few 
years,  forecasts  have  tended  to  exceed  the  declaration  by  a  significant  amount  (by  11 %  in  2011). 
Therefore, the Commission has taken a prudent stance and requests additional payment appropriations 
on  the  basis  of  a  reduction  of  15 %  applied  to  these  revised  forecasts.  It  would  imply  expenditure 
declarations for the third quarter in the same order of magnitude as last year. The Commission will 
closely  follow  the  incoming  expenditure  declarations  for  the  third  quarter  and  inform  the  budgetary 
authority of any change in the additional needs of payment appropriations. 

17 04 01 01 Animal  disease  eradication  and  monitoring  programmes  and  monitoring  of  the 
physical conditions of animals that could pose a public health risk linked to an external facto —
 New measures (+ EUR 17 million) 

There is an additional need for payment appropriations to cover outstanding obligations vis-à-vis the 
Member States in conformity with the application of animal disease eradication programmes for the 
years 2010 and before, but also for the implementation of the 2011 programmes, which had higher co-
financing rates. EUR 17 million is needed to fully reimburse Member States for pre-financing of the 
programmes. However, with respect to commitments, the favourable animal health situation in 2012 
has meant that all necessary commitments have already been made so that the remaining commitment 
appropriations will not be needed in 2012 (see section 4 below). 

3.4. 

Heading 3a Freedom, Security and Justice 

The total request for increase in heading 3a is EUR 10 million on one single budget line: 

Budget Line 

Heading 

18 02 09 

European Return Fund 

18 02 09 — European Return Fund (+ EUR 10 million) 

Payments (EUR) 

10 000 000 

Total 

10 000 000 

The payment appropriations allocated to the European Return Fund for 2012 are not sufficient to pay 
the  first  pre-financings  relating  to  the  2012  annual  programmes,  in  line  with  the  legal  basis,  which 
foresees that a pre-financing of 50 % of the related commitments is automatically paid upon adoption 
of the national annual programmes. A reinforcement of EUR 10 million is therefore requested to allow 
the remaining first pre-financings to be paid to the Member States. 

13 

 
 
  
 
3.5. 

Heading 4 EU as a Global Player 

The total request for increase in heading 4 is EUR 67,1 million across four budget lines: 

Budget Line 

19 08 01 03 

European  Neighbourhood  and  Partnership  financial  cooperation  with  Eastern 
Europe 

Heading 

21 05 01 01  Health 

23 02 01 

Humanitarian aid 

23 02 02 

Food aid 

Payments (EUR) 

12 000 000 

14 400 000 

23 687 548 

17 000 000 

Total 

67 087 548 

19 08 01 03 — European  Neighbourhood  and  Partnership  financial  cooperation  with  Eastern 
Europe (+ EUR 12 million) 

Following  the  mid-year  assessment  review,  the  payment  needs  for  2012  have  been  revised  and 
updated,  and  show  an  outstanding  need  of  EUR 83 million  in  payment  appropriations.  Most  of  this 
will be met through internal redeployment, but a shortfall of EUR 12 million remains to be covered. 

The implementation of this budget item has been at or close to 100 % in each of the past three budget 
years. It is a line on which payments accelerate at the year-end for two main structural reasons. First, 
the nature of the Annual Action Plan process, with a focus on commitments during the first half of any 
year.  Second,  the  profile  of  the  large  payments  in  the  Eastern  Neighbourhood,  which  tend  to  be 
tranches  of  budget  support  and  prefinancing  payments  to  the  investment  facilities  (e.g.  the 
Neighbourhood  Investment  Facility  and 
the  FEMIP — Euro-Mediterranean  Investment  and 
Partnership Facility). This kind of payment is quite predictable, and usually takes place at the end of 
the year. 

21 05 01 01 — Health (+ EUR 14,4 million) 

The  implementation  of  payments  on  this  line  reached  100 % in  early  October.  Of  the  total  need  for 
reinforcement of EUR 29 million, EUR 14,6 million could be accommodated in the Global Transfer. 
The remaining, EUR 14,4 million is now requested in this amending budget. 

There  are  currently  a  total  of  128  grant  contracts  and  13  contribution  agreements  with  international 
organisations  under  this  budget  line.  The  need  of  payment  appropriations  is  higher  than  initially 
forecasted,  due  to  payment  requests  relating  to  contracts  signed  in  late  2011  and  in  early  2012.  It 
should be noted that: 

–  in the selection procedure, the contracts under the calls for proposals on Non-State Actors' capacity 
building for access to HIV-AIDS prevention, treatments and care in ENPI were only signed by end 
December  2011  and  therefore  the  first  payments  on  these  contracts  were  delayed  from  2011  to 
2012; 

–  first  payments  due  on  a  2011  contribution  agreement  with  the  United  Nations  Population  Fund 
(UNFPA) was not fully paid in 2011, leaving a balance to be paid from 2012 appropriations. At the 
time  the  Draft  Budget  2012  was  submitted  (April  2011),  the  identification  of  the  Annual  Action 
Programme 2012 was at an early stage, and the full consequences in terms of payment needs were 
not definitive; 

–  the  final  payment  to  the  Global  Alliance  for  Vaccines  and  Immunisation  initially  forecasted  for 

2013 will now take place in 2012 as the project was finalised sooner than foreseen. 

14 

 
 
  
 
23 02 01 — Humanitarian aid (+ EUR 23,7 million) 

The initial budget in payment appropriations on the humanitarian aid budget line, as approved by the 
Budgetary Authorities, was EUR 35 million lower than the amount in commitment appropriations. At 
the same time, the necessary payment appropriations for 2012 are close to the commitments and the 
most  recent  RAL  (2010/2011)  still  to  be  paid  stands  at  EUR 159 million.  Implementation  of  the 
payments on this budget line stood at 99,0 % mid-October. 

Additionally,  the  humanitarian  aid  budget  line  has  been  reinforced  with  EUR 150 million  in 
commitment  appropriations  to  deal  with  the  humanitarian  crises  in  Sudan,  South  Sudan,  Yemen, 
Syria, the Horn of Africa and Pakistan. The reinforcements have been achieved through the use of the 
Emergency Aid Reserve (EAR) and redeployment within heading 4. 

The  corresponding  reinforcement  in  payment  appropriations  were  only  58 %  of  the  amount  in 
commitments,  while  the  Commission  makes  pre-financing  payments  of  80 %  at  the  start  of  the 
humanitarian operations. The Commission has therefore specifically mentioned in its transfer requests 
to the Budgetary Authorities that supplementary payment appropriations would be requested later in 
the  year.  Out  of  the  total  EUR 88 million  needed,  EUR 64,3 million  have  already  been  requested  in 
the Global Transfer. 

23 02 02 — Food aid (+ EUR 17 million) 

The  initial  budget  in  payment  appropriations  on  the  food  aid  budget  line,  as  approved  by  the 
Budgetary Authority, was EUR 21 million lower than the amount in commitment appropriations. At 
the same time, the necessary payment appropriations for 2012 are close to the commitments and the 
most  recent  RAL  (2010/2011)  still  to  be  paid  stands  at  EUR 63 million.  By  early  October,  the 
implementation of payments on this budget line had reached 100 %. 

The food aid budget line has been reinforced with EUR 90 million in commitment appropriations to 
deal with the humanitarian crises in the Sahel, Sudan/South Sudan and the food crisis in the Horn of 
Africa.  The  reinforcements  have  been  achieved  through  the  use  of  the  Emergency  Aid  Reserve  and 
redeployment  within  heading  4.  The  corresponding  reinforcements  in  payment  appropriations  were 
only 19 % of the amount in commitments, while the Commission makes a pre-financing payment of 
80 %  at  the  start  of  the  humanitarian  operations.  The  Commission  already  mentioned  in  its  transfer 
requests to the Budgetary Authority that supplementary payment appropriations may be needed later 
in the year. Out of the total EUR 51 million needed, EUR 34 million have already been requested in 
the Global Transfer. 

4. 

REDUCTIONS IN COMMITMENT AND PAYMENT APPROPRIATIONS 

The Commission has identified a number of budget items for which part of the available commitment 
appropriations will not be used by the end of the year, and therefore proposes to reduce the budgeted 
commitment  appropriations  accordingly.  In  some  cases,  a  corresponding  amount  of  payment 
appropriations is also available, and is redeployed within this amending budget. The total reductions 
concerned amount to EUR 133,4 million for commitments and EUR 47,4 million for payments. 

The full list, by heading, is set out below: 

15 

 
 
  
 
Budget Line 

Heading 

09 02 04 01  Body  of  European  Regulators 
for  Electronic  Communications 
(BEREC) — Office —
 Contribution to Titles 1 and 2 

Commitments
EUR 

Payments 
EUR 

- 1 102 937   

26 02 01 

Procedures  for  awarding  and 
advertising public supply, works 
and service contracts 

- 1 600 000   

29 02 03 

Union  Statistical  Programme 
2008 to 2012 

- 5 000 000   

Justification 

proposed 

On  19  August  2012,  BEREC  Office's  Management 
Committee approved an amended agency's budget. 
The 
commitment 
decrease 
appropriations  corresponds 
the  difference 
between the EU subsidy to the Agency, authorised 
in  the  2012  budget,  and  the  amended  BEREC 
Office's budget. 

to 

in 

Contrary to the initial forecast, a significant drop in 
the publications of the institutions and other types 
of  public  notices  has  been  observed  in  the  first 
three  quarters  of  2012.  Moreover,  a  new 
production  contract  with  lower  prices  will  come 
into  force  in  December  2012.  All  these  factors 
generate a surplus of commitment appropriations. 

The  draft  Regulation  on  the  EU  Safety  Survey  was 
adopted  by  the  Commission  in  June  2011  and  is 
now being discussed by the Council and Parliament. 
According  to  the  Commission's  proposal,  an  EU 
Safety  Survey  (SASU)  should  be  carried  out  by  the 
Member  States  in  2013.  Eurostat  had  allocated 
necessary  budgetary  funds  in  2012  to  undertake 
the safety survey immediately after adoption of the 
Regulation.  As  it  became  apparent  during  the 
legislative  process,  more  time  is  needed  to  allow 
reaching an agreement at the level of the European 
legislator,  and  adoption  is  envisaged  for  2013,  one 
year  later  than  originally  planned.  An  amount  of 
EUR 6 million  was  originally  allocated  for  this 
project,  from  which  EUR 5 million  will  not  be  used 
and can thus be reallocated. 

Total Heading 1a 

- 7 702 937

0  

05 04 05 02 

EAFRD technical assistance 

- 13 000 000   

11 03 01 

International 
agreements 

fisheries 

- 49 606

The  available  commitment  appropriations  are  not 
expected  to  be  completely  used,  leaving  a  surplus 
of EUR 13 million. The under-execution  on this line 
in 2012 has already been taken into account in the 
Draft Budget 2013. 

- 76 191 Some  appropriations  are  not  needed  after  making 
the 
commitments 
all  necessary 
international  fisheries  agreements  in  force  in  2012 
and  settling  some  of  the  RAL  amounts  (sectorial 
support 
and  Kiribati 
the  Madagascar 
agreements  and  the  compensation  due  to  the 
Republic of Guinea for 2010). 

linked 

for 

to 

11 03 02 

Contributions  to  international 
organisations 

- 798 015   

The  annual  financial  contribution  to  two  regional 
organisations  is  not  due  this  year  because  of  the 
delay  of  the  entry  into  force  of  the  mandate  of 
these organisations. In addition, the exchange rates 
fluctuations have led to lower expenses. 

11 03 04 

11 06 11 

European 
financial 
Union 
contribution  to  the  bodies  set 
up  by 
the  United  Nations 
Convention  on  the  Law  of  the 
Sea, 1982 

- 33 234

- 22 877 The  annual  financial  contribution  has  been  lower 

than initially foreseen. 

Fisheries 

European 
(EFF) — Operational 
assistance 

Fund 
technical 

- 477 119   

The  contribution  to  actions  undertaken  in  2012  is 
lower than foreseen initially. 

16 

 
 
  
 
Commitments
EUR 

Payments 
EUR 

- 240 000   

- 57 640 000   

Justification 

Appropriation  not  needed  in  2012  because  of 
delays in the finalisation of the framework contract 
for scientific advice. 

Due  to  the  favourable  animal  health  situation  in 
2012,  all  necessary  commitments  have  already 
been  made  so  that  the  remaining  commitment 
appropriations will not be needed in 2012. 

Budget Line 

Heading 

11 07 02 

Support for the management of 
fishery resources (improvement 
of scientific advice) 

17 04 01 01  Animal  disease  eradication  and 
monitoring  programmes  and 
monitoring  of 
the  physical 
conditions of animals that could 
pose  a  public  health  risk  linked 
to  an  external  factor — New 
measures 

17 04 03 01 

Emergency  fund  for  veterinary 
complaints  and  other  animal 
contaminations which are a risk 
factor — New 
to 
measures 

public 

- 4 400 000   

Due  to  the  favourable  animal  health  situation  in 
2012,  the  requests  for  contribution  from  the 
Emergency  Fund  will  only  be  half  of  the  provision 
set  up  at  the  start  of  the  year.  An  increase  of 
EUR 17 million in payments is explained in section 3 
above. 

Fewer actions than initially planned will be financed 
this year. 

17 04 07 01 

Feed  and 
related 
measures 

food  safety  and 
activities — New 

- 3 380 000   

Total Heading 2 

- 80 017 976

- 99 068  

09 02 05 

Other  measures 
audiovisual and media sector 

in 

the 

- 40 741   

in 

proposed 

The 
commitment 
decrease 
appropriations is the result of the cancellation of a 
procurement  procedure  for  a  study  on  business 
models 
providers 
(SMART2012/0030)  because  a  similar  exercise  is 
carried out by another Commission Service. 

internet 

content 

for 

Total Heading 3b 

- 40 741 

0 

40 02 41 

Differentiated 
Appropriations — International 
Fisheries Agreements (Reserve) 

- 45 652 520 - 47 252 520 A  number  of  agreements 

currently  under 
negotiation  will  not  be  adopted  by  the  end  of  the 
year  (Morocco,  Gabon,  Solomon  Islands,  Guinea-
Bissau). Therefore, the appropriations entered into 
the  reserve  for  this  purpose  will  not  be  used  in 
2012. 

Total Reserves on financial interventions 

- 45 652 520 - 47 252 520  

GRAND TOTAL 

- 133 414 172 - 47 351 588  

17 

 
 
  
 
 
 
5. 

SUMMARY TABLE BY HEADING OF THE FINANCIAL FRAMEWORK 

Financial framework 
Heading/subheading 

2012 Financial framework 

Budget 2012 (incl. AB 1-3/2012 and 
DAB 4-5/2012) 

DAB 6/2012 

Budget 2012 
(incl. AB 1-3/2012 and DAB 4-6/2012) 

CA 

PA 

CA 

PA 

CA 

PA 

CA 

PA 

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

1b. Cohesion for growth and employment 

Margin 

Margin 
Total 
Margin12 

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 

Total 
Margin 

3b. Citizenship 

4. EU AS A GLOBAL PLAYER 

5. ADMINISTRATION 

Margin 

Margin 
Total 
Margin13   

Margin14 

Margin15 
TOTAL 

Margin   

14 853 000 000

52 761 000 000

67 614 000 000

48 093 000 000

60 810 000 000

1 406 000 000

699 000 000

2 105 000 000

8 997 000 000

8 523 000 000

148 049 000 000

141 360 000 000

15 403 000 000
- 50 000 000
52 752 576 141
8 423 859
68 155 576 141

- 41 576 141   

11 482 916 106

- 7 702 937

625 316 535

43 835 746 321

7 170 500 000

55 318 662 427

- 7 702 937

7 795 816 535

15 395 297 063
- 42 297 063
52 752 576 141
8 423 859
68 147 873 204

- 33 873 204   

12 108 232 641 

51 006 246 321 

63 114 478 962 

43 969 637 305

43 875 978 049

- 65 420 000

17 000 000

43 904 217 305

43 892 978 049 

59 975 774 185

57 034 220 262

- 125 670 494

1 121 648 412

59 850 103 691

58 155 868 674 

834 225 815   

1 367 806 560
38 193 440
1 385 690 821
1 563 220
2 753 497 381

39 756 660   

835 577 878

10 000 000

1 336 954 221

- 40 741

2 172 532 099

- 40 741

10 000 000

959 896 309   

1 367 806 560
38 193 440
1 385 650 080
1 603 961
2 753 456 640

39 797 401   

9 405 937 000
- 150 000 000
8 279 641 996
327 358 004
148 570 426 703
1 209 764 338

6 955 083 523

8 277 736 996

129 758 235 307
12 445 957 052

67 087 548

- 133 414 172

8 994 552 495

9 405 937 000
- 150 000 000
8 279 641 996
327 358 004
148 437 012 531
1 43 178 510

845 577 878 

1 336 954 221 

2 182 532 099 

7 022 171 071 

8 277 736 996 

138 752 787 802 
3 451 404 557 

12 

13 
14 

15 

The European Globalisation adjustment Fund (EGF) is not included in the calculation of the margin under Heading 1a (EUR 500 million). EUR 50 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 2012 margin for heading 4 does not take into account the appropriations related to the Emergency Aid Reserve (EUR 258,9 million). EUR 150 million above the ceiling is financed 
by the mobilisation of the Flexibility Instrument. 
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 84 million for the staff 
contributions to the pension scheme. 

18