Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management as regards the multiannual financial framework, to take account of the expenditure requirements resulting from the accession of Croatia to the European Union
Date: 2013-03-18
Institutions: European Commission
Subjects: Croatia, accession negotiations, budgetary equilibrium, commitment of expenditure, interinstitutional agreement, payment appropriation

EUROPEAN 
COMMISSION 

Brussels, 18.3.2013  
COM(2013) 157 final 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and 
sound financial management as regards the multiannual financial framework, to take 
account of the expenditure requirements resulting from the accession of Croatia to the 
European Union 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

On 9 December 2011, the Treaty concerning the Accession of the Republic of Croatia to the 
European Union was signed. It paves the way for the ratification procedures that should allow 
Croatia to become the 28th Member State of the European Union on 1 July 2013.  

2. 

LEGAL ELEMENTS OF THE PROPOSAL 

Article  312(2)  of  the  Treaty  on  the  Functioning  of  the  European  Union  provides  that  the 
Council  shall  unanimously  adopt  a  Regulation  laying  down  the  multiannual  financial 
framework  after  obtaining  the  consent  of  the  European  Parliament.  On  3  March  2010,  the 
Commission made a proposal for a Council regulation laying down the multiannual financial 
framework for the years 2007 to 2013 and for an accompanying Interinstitutional Agreement1. 
So far, the European Parliament and the Council have failed to agree on these proposals.  

Pending  that  agreement,  the  Interinstitutional  Agreement  between  the  European  Parliament, 
the Council and the Commission on budgetary discipline and sound financial management of 
17 May 2006 (IIA)2 remains applicable.  

The  present  proposal  is  thus  based  on  Point  29  of  the  IIA  (adjustment  of  the  financial 
framework to cater for enlargement). Point 29 of the IIA provides that, if new Member States 
accede  to  the  European  Union  during  the  period  covered  by  the  financial  framework,  the 
European Parliament and the Council, acting on a proposal from the Commission, will jointly 
adjust the financial framework to take account of the expenditure requirements resulting from 
the outcome of the accession negotiations. 

3. 

ADJUSTMENT  OF  THE  FINANCIAL  FRAMEWORK  FOR  THE  PERIOD 
FROM 1 JULY TO 31 DECEMBER 2013 

3.1. 

Amounts foreseen for the accession of Croatia 

The proposed adjustment of the financial framework is based on the relevant articles 
of  the  Treaty  concerning  the  accession  of  the  Republic  of  Croatia  to  the  European 
Union3  and  on  the  EU  common  position  on  Chapter  33  (Financial  and  Budgetary 
provisions)4. The commitment and payment appropriations needed to take account of 
the accession of Croatia are shown in the below table: 

1 
2 
3 
4 

COM(2010) 72 and COM(2010) 73 of 3.3.2010.  
OJ C 139, 14.6.2006, p. 1. 
Part Four, Title III, notably Articles 29 to 34.  
Conference on Accession to the European Union – Croatia, Accession Document No 30/11 (CONF-HR 
17/11) of 29.6.2011. 

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Croatia financial package (EUCP), accession on 1 July 2013 
(EUR millions, current prices) 

2013 

1. Sustainable growth 

1a Competitiveness for growth and employment1) 
1b Cohesion for growth and employment
of which Structural Funds
of which Cohesion Fund

2. Preservation and management of natural resources  

market related expenditure 1) 
direct payments
demining reserve 
rural development
European Fisheries Fund
Other CFP support, Life + 1) 

3. Citizenship, freedom, security and justice  

3a Freedom, security and justice1) 
Schengen facility
3b Citizenship1) 
Transition Facility

4. EU as a global player 

5. Administration  

6. Compensations (Cash-flow facility) 

Total commitment appropriations 
Total payments appropriations 
1) Non pre-allocated expenditure given for illustrative purposes only.  

496.8 
47.4 
449.4 
299.6 
149.8 

20.4 
9.0 
0 
0 
0 
8.7 
2.7 

73.3 
2.1 
40.0 
2.2 
29.0 

0 

22.0 

75.0 

687.5 
396.3 

3.2. 

Adjustment  of  the  financial  framework  for  enlargement  –  appropriations  for 
commitments 

In  accordance  with  Point  29  of  the  IIA,  the  Commission  proposes  to  adjust  the 
financial  framework  for  the  year  2013  by  fully  taking  account  of  the  expenditure 
requirements for EU policies which result from the accession negotiations as detailed 
in the above table. Given that the financial framework is expressed in million euros, 
figures are rounded as appropriate for the purpose of its adjustment. 

As part of its ongoing  commitment  to  limit the costs of administering EU policies, 
the Commission proposes not to increase the ceiling for commitment appropriations 
for heading 5. The proposal is therefore to increase the 2013 ceiling for commitment 
appropriations by EUR 666 million in current prices with a breakdown as indicated 
in the table hereafter under point 3.4. 

3.3. 

Adjustment  of  the  financial  framework  for  enlargement  –  appropriations  for 
payments 

The  Commission  proposes  to  increase  the  2013  ceiling  for  payment  appropriations 
by  EUR  374  million  in  current  prices  to  cover  the  expenditure  requirements  of  the 
EU policies resulting from the accession negotiations as detailed in the above table.  

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As part  of its ongoing commitment  to limit the costs of administering EU policies, 
the Commission proposes not to take the additional payment appropriations relating 
to heading 5 into account.  

3.4. 

Financial Framework adjusted to enlargement in current and 2004 prices 

The  above  changes  to  the  financial  framework  2007-2013  are  summarised  in  the 
below table (current prices):  

(EUR million)

2007

2008

2009

2010

2011

2012

2013

2007-2013

1a. Competitiveness for Growth and 
Employment
1b. Cohesion for Growth and 
Employment
2. Preservation and Management of 
Natural Resources

of which: market related expenditure 
and direct payments

3a. Freedom, security and justice

3b. Citizenship

4. EU as a global player

5. Administration

6. Compensations

Total
change
appropriations
Total
appropriations

change

in

commitment

0

0

0

in

payment

0

0

0

0

0

0

47

450

21

9

42

31

0

0

75

666

374

47

450

21

9

42

31

0

0

75

666

374

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The  financial  framework  adjusted  to  enlargement  (EU-28)  expressed  in  current 
prices is shown below. It is based on the results of the technical adjustment for 2013 
(Point 16 of the IIA).  

The formal decision amending the IIA as regards the financial framework must refer 
to the basic table agreed in the IIA which is expressed in constant 2004 prices. For 
this purpose, the amounts of the financial framework adjusted to enlargement (EU-
28) expressed in current prices have to be converted into 2004 prices by means of a 
fixed  deflator  of  2%  a  year,  in  accordance  with  Point  16  of  the  IIA.  The  resulting 
financial  framework  table  expressed  in  2004  prices  is  annexed  to  the  proposed 
Decision of the European Parliament and of the Council. 

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FINANCIAL FRAMEWORK 2007-2013 ADJUSTED FOR ENLARGEMENT (EU-28), IN CURRENT PRICES 

COMMITMENT APPROPRIATIONS

1. Sustainable Growth

1a Competitiveness for Growth and Employment
1b Cohesion for Growth and Employment

2. Preservation and Management of Natural Resources
of which: market related expenditure and direct payments

3. Citizenship, freedom, security and justice

3a Freedom, Security and Justice
3b Citizenship

4. EU as a global player
5. Administration (1)
6. Compensations

2007

53.979

8.918

45.061

55.143

45.759

1.273

637

636

6.578

7.039

445

2008

57.653

10.386

47.267

59.193

46.217

1.362

747

615

7.002

7.380

207

2009

61.696

13.269

48.427

56.333

46.679

1.518

867

651

7.440

7.525

210

2010

63.555

14.167

49.388

59.955

47.146

1.693

1.025

668

7.893

7.882

0

2011

63.974

12.987

50.987

59.888

47.617

1.889

1.206

683

8.430

8.091

0

(EUR million - current prices)

2013

70.644

15.670

54.974

61.310

48.583

2.449

1.703

746

9.595

9.095

75

Total
2007-2013
439.115

90.250

348.865

412.632

330.094

12.289

7.591

4.698

55.935

55.535

937

2012

67.614

14.853

52.761

60.810

48.093

2.105

1.406

699

8.997

8.523

0

TOTAL COMMITMENT APPROPRIATIONS

124.457

132.797

134.722

140.978

142.272

148.049

153.168

976.443

as a percentage of GNI

1,02%

1,08%

1,16%

1,18%

1,15%

1,13%

1,15%

1,12%

TOTAL PAYMENT APPROPRIATIONS

122.190

129.681

120.445

134.289

133.700

141.360

144.285

925.950

as a percentage of GNI
Margin available
Own Resources Ceiling as a percentage of GNI

1,00%

0,24%

1,24%

1,05%

0,19%

1,24%

1,04%

0,20%

1,24%

1,12%

0,11%

1,23%

1,08%

0,15%

1,23%

1,08%

0,15%

1,23%

1,08%

0,15%

1,23%

1,06%

0,17%

1,23%

(1) The expenditure on pensions included under the ceiling for this heading is calculated net of the staff contributions to the relevant scheme, within the limit of € 500 million at 
2004 prices for the period 2007-2013.

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4. 

FINAL REMARKS 

For  Croatia's  accession  to  the  European  Union  to  take  effect  on  1  July  2013,  each 
signatory State’s instruments of ratification must be deposited with the Government 
of the Italian Republic on 30 June 2013 at the latest, in compliance with Article 3 of 
the Accession Treaty. 

Should  any  signatory  to  the  Accession  Treaty,  according  to  its  own  ratification 
procedure,  reject  the  Accession  Treaty  or  not  ratify  it  within  the  prescribed  period, 
the Accession Treaty will not enter into force on 1 July 2013. 

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Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and 
sound financial management as regards the multiannual financial framework, to take 
account of the expenditure requirements resulting from the accession of Croatia to the 
European Union 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Interinstitutional  Agreement  between  the  European  Parliament,  the 
Council  and  the  Commission  of  17  May  2006  on  budgetary  discipline  and  sound  financial 
management5, and in particular to Point 29 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

The  Treaty  concerning  the  accession  of  the  Republic  of  Croatia  to  the  European 
Union6 lays down transitory provisions in budgetary matters. 

The  Accession  Conference  of  30  June  2011  has  endorsed  the  results  of  the 
negotiations  which  have  determined  expenditure  requirements  resulting  from  the 
accession of Croatia to the European Union on 1 July 2013. 

The  accession  of  Croatia  requires  an  adjustment  of  the  multiannual  financial 
framework  2007-2013,  so  as  to  raise  the  ceilings  for  commitment  appropriations  for 
the  year  2013  by  EUR  47  million  for  subheading  1a,  by  EUR  450  million  for 
subheading 1b, by EUR 21 million for heading 2, by EUR 42 million for subheading 
3a,  and  by  EUR  31  million  for  subheading  3b,  and  to  provide  for  compensations 
amounting to EUR 75 million under Heading 6, in current prices. 

The  accession  of  Croatia  also  requires  and  adjustment  of  the  ceiling  for  payment 
appropriations  for  2013,  to  be  raised  by  an  amount  of  EUR  374  million  in  current 
prices. 

The financial framework for the European Union agreed upon in the Interinstitutional 
Agreement  on  budgetary  discipline  and  sound  financial  management  should  be 
adjusted to take account of the accession of Croatia for the period from 1 July to 31 
December 2013. 

(6) 

Annex  I  of  the  Interinstitutional  Agreement  on  budgetary  discipline  and  sound 
financial management should therefore be amended accordingly7, 

5 
6 
7 

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

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HAVE ADOPTED THIS DECISION: 

Sole Article 

Subject  to  the  entry  into  force  of  the  Treaty  concerning  the  accession  of  the  Republic  of 
Croatia to the European Union on 1 July 2013, Annex I to the Interinstitutional Agreement on 
budgetary  discipline  and  sound  financial  management  is  replaced  by  the  Annex  to  this 
Decision. 

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

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ANNEX  

FINANCIAL FRAMEWORK 2007-2013 

COMMITMENT APPROPRIATIONS

1. Sustainable Growth

1a Competitiveness for Growth and Employment
1b Cohesion for Growth and Employment

2. Preservation and Management of Natural Resources
of which: market related expenditure and direct payments

3. Citizenship, freedom, security and justice

3a Freedom, Security and Justice
3b Citizenship

4. EU as a global player
5. Administration (1)
6. Compensations

(EUR million - constant 2004 prices)

2007

50.865

8.404

42.461

51.962

43.120

1.199

600

599

6.199

6.633

419

2008

53.262

9.595

43.667

54.685

42.697

1.258

690

568

6.469

6.818

191

2009

55.879

12.018

43.861

51.023

42.279

1.375

785

590

6.739

6.816

190

2010

56.435

12.580

43.855

53.238

41.864

1.503

910

593

7.009

6.999

0

2011

55.693

11.306

44.387

52.136

41.453

1.645

1.050

595

7.339

7.044

0

2012

57.708

12.677

45.031

51.901

41.047

1.797

1.200

597

7.679

7.274

0

2013

59.111

13.112

45.999

51.301

40.652

2.049

1.425

624

8.029

7.610

63

Total
2007-2013
388.953

79.692

309.261

366.246

293.112

10.826

6.660

4.166

49.463

49.194

863

TOTAL COMMITMENT APPROPRIATIONS

117.277

122.683

122.022

125.184

123.857

126.359

128.163

865.545

as a percentage of GNI

1,08%

1,09%

1,06%

1,06%

1,03%

1,03%

1,02%

1,050%

TOTAL PAYMENT APPROPRIATIONS

115.142

119.805

109.091

119.245

116.394

120.649

120.731

821.057

as a percentage of GNI
Margin available
Own Resources Ceiling as a percentage of GNI

1,06%

0,18%

1,24%

1,06%

0,18%

1,24%

0,95%

0,29%

1,24%

1,01%

0,22%

1,23%

0,97%

0,26%

1,23%

0,98%

0,25%

1,23%

0,96%

0,27%

1,23%

1,00%

0,23%

1,23%

(1) The expenditure on pensions included under the ceiling for this heading is calculated net of the staff contributions to the relevant scheme, within the limit of € 500 million at 
2004 prices for the period 2007-2013.

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