DRAFT AMENDING BUDGET N° 8 (DAB2 bis) TO THE GENERAL BUDGET 2013 GENERAL STATEMENT OF REVENUE STATEMENT OF EXPENDITURE BY SECTION Section III – Commission
Date: 2013-09-25
Institutions: European Commission
Subjects: European citizenship, amending budget, area of freedom, security and justice, budgetary expenditure, budgetary resources, conservation of resources, draft budget (EU), sustainable development, the EU's international role













EUR-Lex - 52013DC0669 - EN











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52013DC0669

DRAFT AMENDING BUDGET N° 8 (DAB2 bis) TO THE GENERAL BUDGET 2013 GENERAL STATEMENT OF REVENUE STATEMENT OF EXPENDITURE BY SECTION Section III – Commission /* COM/2013/0669 final */









DRAFT AMENDING BUDGET N° 8 (DAB2 bis)
TO THE GENERAL BUDGET 2013
GENERAL STATEMENT OF REVENUE
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 Regulation (EU, Euratom) No 966/2012 of the
European Parliament and of the Council of 25 October 2012 on the Financial
Regulation applicable to the general budget of the Union[1], and in particular
Article 41 thereof,
–                        
the general budget of the European Union for the
financial year 2013 adopted on 12 December 2012[2],
–                        
the amending budget No 1/2013, adopted on 4
July 2013,
–                        
the amending budget No 2/2013, adopted on 11 September
2013,
–                        
the amending budget No 3/2013, adopted on 11 September
2013,
–                        
the amending budget No 4/2013, adopted on 11
September 2013,
–                        
the amending budget No 5/2013, adopted on 11
September 2013,
–                        
the draft amending budget No 6/2013[3], adopted on 10 July 2013, as
amended on 18 September 2013[4]
–                        
the draft amending budget No 7/2013[5], adopted on 25 July 2013,
The European
Commission hereby presents to the budgetary authority the draft amending budget
No 8 to the 2013 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.
TABLE OF CONTENT
1.      Introduction.. 5
2.      Shortage of payment appropriations in the 2013 budget.. 5
2.1    Amending budget
2/2013. 5
2.2    Payment
implementation 2013 to date. 6
2.3    Overview of
proposed reinforcements. 6
3.      Reinforcement of payments by MFF heading.. 7
3.1.        Heading
1a ¾ Competiveness for Growth and Employment.. 7
3.2.        Heading
1b ¾ Cohesion for Growth and Employment.. 9
3.3.        Heading 2 ¾ Preservation and Management of Natural
Resources. 11
3.4.        Heading
3a ¾ Freedom, Security and Justice. 12
3.5.        Heading
3b ¾ Citizenship. 13
3.6.        Heading 4 ¾ EU as a Global Player.. 14
4.      Conclusion.. 15
5.      Summary table by MFF heading.. 16
1.           Introduction
Draft amending budget No 8
for the year 2013 (DAB 8/2013) concerns the
increase of payment appropriations of EUR 3,9 billion
across headings 1a, 1b, 2, 3a, 3b and 4 of the multi-annual financial framework
(MFF) to the overall level proposed already in DAB 2/2013. This is with the aim
of meeting the outstanding needs to the end of the year, so that legal obligations
stemming from past and current commitments can be honoured, financial penalties
avoided, and beneficiaries can receive the funds envisaged by the agreed EU
policies, for which Parliament and Council authorised the related commitment appropriations
in previous annual budgets. The requested additional payment appropriations
will reduce the level of outstanding commitments (‘reste à liquider’, RAL) as
well as the risk of rolling over onto 2014 abnormally high levels of unpaid
bills.
This DAB 8/2013 updates
DAB 2/2013, presented by the Commission in March 2013 for an amount of EUR 11,2 billion
and only partially approved by the budgetary authority in September 2013 for
an amount of EUR 7,3 billion. It is consistent with the political agreement
reached between the Presidents of the three Institutions on the 2014-2020 MFF which
states that: "The Council commits to take all necessary additional
steps to ensure that the Union's obligations for 2013 are fully honoured. On
the basis of a proposal to be made by the Commission in early autumn on the
basis of the latest updated estimates regarding payment appropriations, the
Council commits to decide, without delay, on a further draft amending budget to
avoid any shortfall in justified payment appropriations".
In accordance with Article 41(2)
of the Financial Regulation, the Commission has examined the scope for internal
redeployment within an overall review of year-end payment needs, against the
background of consistently high payment implementation across all major programmes
with no or little appropriations left on a considerable number of budget items
to pay incoming bills. This has led the Commission to propose the redeployment
of EUR 509,8 milion in the so-called ‘global transfer’ (DEC 26/2013,
made available in parallel with DAB 8/2013). The updated request (EUR 3 940 million)
in this DAB 8/2013 reflects the outstanding additional payment
appropriations required to meet year-end needs across the 2013 budget, making
use of the available payments ceiling in 2013.
The requested payment
appropriations will allow the legal obligations arising in 2013 to be met. This
will avoid any abnormal carry-over into 2014 of payment needs that should have
been addressed in the financial year 2013. Since the ‘N+3’ decommitment rule
under cohesion policy ends in 2013, the Commission expects to receive an
increased share of payment claims very late in the year, and consequently to be
able to pay these claims only in early 2014.
The request for EUR 3 940 million
is detailed below.
2.           Shortage of payment appropriations in
the 2013 budget
2.1         Amending
budget 2/2013
The Commission pointed out
on several occasions that the level of payment appropriations in the 2013 budget
was artificially underbudgeted. On 27 March 2013, the Commission presented a
draft amending budget (DAB 2/2013) requesting EUR 11,2 billion
in additional payment appropriations to cover payment needs until the end of
the year. The budgetary authority accepted the DAB 2/2013 in part, authorising
only two thirds of the request for each budget line concerned. At the same time,
the Commission was requested to present a further amending budget in early
autumn to cover outstanding payment needs until year-end.
2.2         Payment implementation 2013
to date
Overall, implementation of payment appropriations at 16 September 2013
stood at EUR 106,9 billion, corresponding to 78 % of available
appropriations (including the recently approved reinforcement in amending
budget 2/2013). This is EUR 7,3 billion more than the
implementation at the same date in 2012. The particularly high level of budget
implementation is all the more striking against the background of cash-flow
constraints experienced in the course of 2013, which have led to temporary restrictions
on the outflow of payments, particularly for Cohesion (heading 1b) and
Rural Development (heading 2). These constraints have kept implementation
artificially below what it would have been under normal conditions in the first
half of the year. Moreover, for some time now no further disbursement could be
made for a number of budget lines, since authorised payment appropriations had
already been exhausted.
The current rate of
implementation underpins the request for a substantial further reinforcement in
payments, also given that payment implementation is traditionally concentrated
towards the end of the year (usually one fifth of implementation takes place in
the last two months of the year) and that all programmes at the end of the MFF
period are running at full speed.
The Commission has made full
use of the existing scope for redeployment in the annual ‘global transfer’
exercise aimed at adjusting authorised payment appropriations across budget
lines according to the latest updated needs. The ‘global transfer’ has allowed
to shift EUR 509,8 million, corresponding to 0,4 % of the total
authorised payment appropriations in the 2013 budget, towards programmes with
outstanding needs. However, it also confirmed the general need for further
reinforcements, over and above the reinforcement authorised in amending
budget 2/2013, given the order of magnitude of the shortage of payment
appropriations in the 2013 budget.
2.3         Overview of proposed reinforcements
As outlined above, the Commission has carefully reviewed the needs
to meet legal obligations in 2013. On that basis this DAB 8/2013 aims at
adjusting the level of payment appropriations available across budget lines to
address identified payment shortages, taking into account transfers made over
the course of the year to meet urgent needs.
In general, the review of year-end needs has confirmed the needs
assessment contained in the initial DAB 2/2013. Therefore, this DAB 8/2013
confirms and by and large requests the second ‘tranche’ of the initial
reinforcement requested for each budget line included in DAB 2/2013.
Unless explained otherwise in the text below, the underlying reasons for the
requests as provided in DAB 2/2013 remain valid as well. Likewise, most
(80 %) of the requested additional payment appropriations by MFF heading are
concentrated in heading 1b (see table below).
Payment
appropriations in EUR million, rounded figures
 MFF Heading || 2013 Budget (incl. AB 1) || 2013 Budget (incl. AB 1-5 & DAB 6-7) || Of which AB 2 || DAB 8 || AB 2 + DAB 8 || Share in AB 2 + DAB 8 || 2013 Budget (incl. AB 1-5 & DAB 6-8) || Difference 
 (1)  (2) || (3) || (4) || (5) = (3)+(4) ||   || (6) || (6)/(1) (*) 
 Heading 1a || 11 904,0 || 12 543,0 || 639,0 || 343,6 || 982,6 || 8,7 % || 12 886,6 || 8,3 % 
 Heading 1b || 47 348,4 || 53 202,0 || 5 853,6 || 3 147,5 || 9 001,1 || 80,1 % || 56 349,5 || 19,0 % 
 Heading 2 || 57 487,0 || 57 882,7 || 395,7 || 185,3 || 581,0 || 5,2 % || 58 068,0 || 1,0 % 
 Heading 3a || 917,7 || 1 001,2 || 83,5 || 49,3 || 132,7 || 1,2 % || 1 050,4 || 14,5 % 
 Heading 3b || 639,1 || 663,9 || 9,9 || 0,9 || 10,8 || 0,1 % || 664,8 || 4,0 % 
 Heading 4 || 6 409,4 || 6 727,7 || 318,3 || 213,4 || 531,7 || 4,7 % || 6 941,1 || 8,3 % 
 Heading 5 || 8 430,4 || 8 430,0 ||   ||   ||   ||   || 8 430,0 ||   
 Heading 6 || 75,0 || 75,0 ||   ||   ||   ||   || 75,0 ||   
 Total || 133 211,0 || 140 525,6 || 7 300,0 || 3 940,0 || 11 240,0 || 100,0 % || 144 465,6 || 8,4 % 
 Of which headings 1a, 2, 3a, 3b, 4, 5 and 6 || 85 862,6 || 87 323,5 || 1 446,4 || 792,5 || 2 238,9 || 19,9 % || 88 116,0 || 2,6 % 
  (*) Excluding European Union Solidarity Fund (EUSF) 
The sections below set out the net impact of the updated year-end
needs for payment appropriations, by MFF heading. In summary, even if certain
adjustments are proposed for individual budget lines, the overall increase in
payments up to the level foreseen in DAB 2/2013 is confirmed for headings
1a and 1b, as well as for headings 3a and 3b taken together, whereas a minor
downward revision for heading 2 is proposed as well as an upward
adjustment in heading 4 to meet further urgent needs for humanitarian aid.
3.           Reinforcement
of payments by MFF heading
3.1.        Heading
1a ¾ Competiveness for Growth and Employment
The need for a significant
increase of payment appropriations for heading 1a in 2013 is confirmed on the
basis of budget implementation to date, combined with a careful analysis of
year-end needs of individual budget lines. The overall request for
reinforcement of payment appropriations in heading 1a for AB 2/2013
and the present DAB 8/2013 combined amounts to EUR 982,6 million
(of which EUR 343,6 million in DAB 8/2013), broken down as
follows:
In EUR
million, rounded figures
 Budget Line || Heading || Additional payments AB 2 || Additional payments DAB 8 || Total reinforcement of payments || Difference compared to DAB 2 
 Research Framework Programmes || 441,068 || 243,164 || 684,232 || 6,000 
 02 04 01 01 || Space research || 22,436 || 18,064 || 40,500 || 6,000 
 02 04 01 02 || Security research || 32,516 || 17,484 || 50,000 ||   
 02 04 01 03 || Research related to transport (Galileo) || 26,013 || 13,987 || 40,000 ||   
 08 02 01 || Cooperation — Health || 130,064 || 75,065 || 205,129 || 5,129 
 08 03 01 || Cooperation — Food, agriculture and fisheries, and biotechnology || 42,271 || 22,729 || 65,000 ||   
 08 05 01 || Cooperation — Energy || 13,006 || 6,994 || 20,000 ||   
 08 06 01 || Cooperation — Environment (including climate change) || 26,013 || 13,987 || 40,000 ||   
 08 08 01 || Cooperation — Socioeconomic sciences and the humanities || 8,126 || 4,369 || 12,495 ||   
 08 10 01 || Ideas || 22,761 || 12,239 || 35,000 ||   
 08 13 01 || Capacities — Research for the benefit of small and medium-sized enterprises (SMEs) || 13,006 || 6,994 || 20,000 ||   
 08 14 01 || Capacities — Regions of knowledge || 1,773 || 0,954 || 2,727 ||   
 08 15 01 || Capacities — Research potential || 0,524 || 0,281 || 0,805 ||   
 08 16 01 || Capacities — Science in society || 5,203 || 2,797 || 8,000 ||   
 08 18 01 || Capacities — Risk-sharing finance facility (RSFF) || 0,488 || 0,263 || 0,751 ||   
 08 21 01 || Euratom — Nuclear fission and radiation protection || 4,650 || 0,100 || 4,750 || 2,400 
 08 22 03 01 || Completion of the sixth EC framework programme (2003 to 2006) || 5,075 || - || 5,075 || -2,729 
 09 04 01 01 || Support for research cooperation in the area of information and communication technologies (ICTs — Cooperation) || 55,277 || 29,723 || 85,000 ||   
 10 02 01 || Non-nuclear activities of the Joint Research Centre (JRC) || 1,301 || 0,699 || 2,000 ||   
 10 03 01 || Nuclear activities of the Joint Research Centre (JRC) || 1,301 || 0,699 || 2,000 ||   
 15 07 77 || People || 29,264 || 15,736 || 45,000 ||   
 Competitiveness and Innovation Framework Programme || 59,829 || 26,171 || 86,000 || -6,000 
 02 02 01 || Competitiveness and Innovation Framework Programme — Entrepreneurship and Innovation Programme || 39,019 || 14,981 || 54,000 || -6,000 
 09 03 01 || Competitiveness and Innovation Framework Programme — Information and Communication Technologies Policy Support Programme (ICT PSP) || 20,810 || 11,190 || 32,000 ||   
 GMES, EGNOS and Galileo || 19,834 || 10,666 || 30,500 || 0,000 
 02 02 15 || European Earth monitoring programme (GMES) || 6,828 || 3,672 || 10,500 ||   
 02 05 01 || European satellite navigation programmes (EGNOS and Galileo) || 13,006 || 6,994 || 20,000 ||   
 Lifelong Learning and Erasmus Mundus || 81,940 || 50,884 || 132,824 || 6,824 
 15 02 02 || Erasmus Mundus || 3,902 || 2,098 || 6,000 ||   
 15 02 22 || Lifelong learning programme || 78,038 || 48,786 || 126,824 || 6,824 
 Other programmes and actions || 36,333 || 12,711 || 49,044 || -6,824 
 02 03 01 || Operation and development of the internal market, particularly in the fields of notification, certification and sectoral approximation || 0,423 || 0,227 || 0,650 ||   
 02 03 04 01 || Support to standardisation activities performed by CEN, Cenelec and ETSI || 1,236 || 0,664 || 1,900 ||   
 04 05 01 || European Globalisation Adjustment Fund (EGF) || 8,454 || - || 8,454 || -4,456 
 10 05 01 || Decommissioning of nuclear installations and waste management || 2,601 || 1,399 || 4,000 ||   
 12 04 01 || Specific activities in the field of financial services, financial reporting and auditing || 0,938 || 0,505 || 1,443 ||   
 14 02 01 || Implementation and development of the internal market || 0,325 || 0,175 || 0,500 ||   
 14 04 02 || Customs 2013 || 5,853 || 3,147 || 9,000 ||   
 14 05 03 || Fiscalis 2013 || 3,902 || 2,098 || 6,000 ||   
 26 03 01 01 || Interoperability Solutions for European Public Administrations (ISA) || 6,503 || 3,497 || 10,000 ||   
 29 02 03 || Completion of the Union Statistical Programme 2008 to 2012 || 6,097 || 1,000 || 7,097 || -2,279 
 Total || 639,005 || 343,596 || 982,601 || 0,000 
Research Framework Programmes
The
request for additional payment appropriations for heading 1a is mostly related
to the payment needs of the 7th Research Framework Programmes
(FP7), which were heavily cut in the voted budget 2013. The review of
year-end payment needs carried out in September 2013 confirmed the
Commission’s request contained in DAB 2/2013. Overall, the Research
Framework Programmes also benefit from an additional net reinforcement through
the ‘global transfer’ of EUR 227,0 million (when excluding the
specific situation of the ITER Joint Undertaking).
As compared to
DAB 2/2013, a minor adjustment in the breakdown of the overall
reinforcement of the research programmes is foreseen, notably to take account
of the sustained high needs for the FP7 Health programme, for which a
further reinforcement amounting to EUR 5,7 million is requested. This
is offset by a lower reinforcement for the Euratom Fission programme
(- EUR 2,4 million) and the FP6 completion line
(- EUR 2,7 million), compared to the initial DAB 2/2013. As
regards the Euratom Fission programme, this is due to the slightly
delayed arrival of interim and final reports of the research projects, which in
turn leads to delays in payments. The downward revision of payments needed for
the completion of FP6 is mainly related to the FP6 Health programme, for
which payment needs until year-end will now be covered by additional assigned
revenues which have become available.
Furthermore, an overall
higher increase of payment appropriations (+ EUR 6,0 million) for
the research programmes as compared to the initial DAB 2/2013 is requested
for Space research, to allow the Commission to fulfil the contractual
obligations of the delegation agreement with the European Space Agency (ESA)
for implementing ‘Research and Development’ for the Space component of GMES.
This is offset by a corresponding slightly reduced increase for the Entrepreneurship
and Innovation Programme under the Competitiveness and Innovation Framework
Programme (CIP). Nevertheless, within the ‘global transfer’ the CIP benefits
from an overall reinforcement beyond the initial DAB 2/2013 through an increase
of payment appropriations of EUR 24,3 million.
Erasmus Mundus
The voted budget 2013
combined an increase in commitment appropriations for Erasmus Mundus
with a reduction in payment appropriations, as compared to the draft budget.
Taking into account the high level of payment implementation in recent years
and the assessment of year-end needs, a further reinforcement amounting to EUR 6,8 million
is proposed, to be offset by the reduced request for the European
Globalisation Adjustment Fund (EGF, - EUR 4,5 million), for
which previously not expected assigned revenues stemming from the financial
closure of previous years’ applications have been received, as well as from the
completion of the Union Statistical programme 2008-2012 (-EUR 2,3 million),
due to some delays compared to the initial closure schedule.
3.2.        Heading 1b ¾ Cohesion
for Growth and Employment
The overall
request for reinforcement of payment appropriations in heading 1b for AB 2/2013
and the present DAB 8/2013 combined amounts to EUR 9 001 million
(of which EUR 3 147,5 million in DAB 8/2013), broken down as
follows:
In EUR million, rounded figures
 Budget Line || Heading || Additional payments AB 2 || Additional payments DAB 8 || Total reinforcement of payments || Difference compared to DAB 2 
 Closure of 2000-2006 programmes || 1 112,795 || 179,280 || 1 292,075 || -419,075 
 04 02 01 || Completion of the European Social Fund (ESF) — Objective 1 (2000 to 2006) || 559,275 || 146,725 || 706,00 || -154,000 
 13 03 01 || Completion of European Regional Development Fund (ERDF) — Objective 1 (2000 to 2006) || 334,915 || 32,555 || 367,470 || -147,530 
 13 03 04 || Completion of European Regional Development Fund (ERDF) — Objective 2 (2000 to 2006) || 55,928 || - || 55,928 || -30,072 
 13 03 06 || Completion of Urban (2000 to 2006) || 0,098 || - || 0,098 || -0,052 
 13 04 01 || Cohesion Fund — Completion of previous projects (prior to 2007) || 162,580 || - || 162,580 || -87,420 
 2007-2013 programmes || 4 740,834 || 2 968 241 || 7 709,075 || 419,075 
 04 02 17 || European Social Fund (ESF) — Convergence || 1 053,519 || 566,481 || 1 620,000 ||   
 04 02 19 || European Social Fund (ESF) — Regional competitiveness and employment || 502,697 || 424,303 || 773,000 || 154,000 
 13 03 16 || European Regional Development Fund (ERDF) — Convergence || 1 168,625 || 628,375 || 1 797,000 ||   
 13 03 18 || European Regional Development Fund (ERDF) — Regional competitiveness and employment || 541,717 || 320,000 || 833,000 || 28,717 
 13 03 19 || European Regional Development Fund (ERDF) — European territorial cooperation || 118,358 || 300,000 || 182,000 || 236,358 
 13 04 02 || Cohesion Fund || 1 355,917 || 729,083 || 2 085,000 ||   
 Total || 5 853,629 || 3 147,521 || 9 001,150 || 0,000 
Within an overall
unchanged reinforcement of payment appropriations for heading 1b as
compared to the initial DAB 2/2013, a relatively minor readjustment from
the closure lines for the 2000-2006 Structural Funds programmes to the current
2007-2013 programmes is foreseen, for the reasons set out below.
Closure of 2000-2006
programmes
The Commission confirms
its intention to close most of the 2000-2006 Structural Funds
programmes this year. However, despite the reinforcement authorised in the
recently approved AB 2/2013, the appropriations on the various budget
lines concerned are virtually exhausted (ERDF) or will be exhausted before the
end of the year (ESF). The Commission therefore proposes an amount of EUR 179,3 million
in DAB 8/2013 for the Structural Funds, in order not to delay unduly the
2000-2006 closure process nor to burden the budget 2014 with requests for these
closures, for which no payment appropriations were foreseen in the Draft Budget
2014. The overall amount requested is in line with the initial assessment of
year-end needs, after taking into account assigned revenues that have been
collected during closure operations, amounting to some EUR 450 million
in total.
Regarding the closure of
the Cohesion Fund projects from 2000-2006 period, for which different
rules applied, the Commission has revised its assessment. Hence, additional
appropriations for 2013 beyond the reinforcement authorised in AB 2/2013, are
no longer required: in line with the current closure planning, these
appropriations have been requested in the Draft Budget 2014.
2007-2013 programmes
As far as the 2007-2013
programmes are concerned, EUR 16,3 billion of payment claims received
before the end of last year had to be charged on the appropriations available in
the 2013 budget. Accordingly, out of the EUR 45,2 billion in the
initial 2013 budget for the 2007-2013 programmes, only EUR 28,9 billion remained available for the payment claims to be
submitted in 2013. After the reinforcement of some EUR 4,7 billion
authorised in AB 2/2013, the total budget available for the payment claims
in 2013 now reaches EUR 33,6 billion.
In 2012 the Commission
received around EUR 50,6 billion in payment claims. It is expected
that payment claims submitted in 2013 will exceed this amount of
EUR 50,6 billion, since the end of the ‘N+3’
rule will force Member States that previously benefitted from this rule to
submit at the end of 2013 payment claims covering up to two annual tranches.
This would also constitute a continuation of the trend observed over the last
three years, during which payment claims have substantially increased on a
yearly basis. At 16 September 2013, payment claims are 11 %
higher than the level of payment claims received at the same time last year.
Member States’ forecasts
for 2013, submitted in mid-September 2013 and corrected to take account of
past experience of forecast accuracy, suggest that payment claims amounting to some
EUR 57,7 billion are expected by the end of the year. This remains in
the same order of magnitude as the Commission’s own assessment and the current
pattern of payment claims, which confirms the request included in
DAB 2/2013. However, the end of the ‘N+3’ rule is likely to lead to an
increased share of payment claims sent only in the very last days of the year,
as Member States will seek to minimise decommitment risks. Such late claims
cannot be processed by the Commission before the end of the year.
Based on the assumptions described
above, the Commission requests an overall reinforcement of EUR 2 968
million in DAB 8/2013. This will allow the Commission to proceed with
payments and avoid shortfalls in justified payment claims received within the
legal deadline, and without shifting an unsustainable level of unpaid claims
into 2014. The reinforcement requested for 2013, amounting to EUR 7 709 million
for AB 2/2013 and DAB 8/2013 combined, is slightly above the overall
amount proposed in the initial DAB 2/2013, so as to take account of the
current inflow of payment claims, in particular for budget lines 04 02 19
(ESF – Competitiveness), 13 03 18 (ERDF – Competitiveness) and 13 03 19
(ERDF – Territorial Cooperation). These budget lines show implementation rates
ranging between 82 % and 100 % at 16 September 2013, even
after taking account of the appropriations recently authorised in AB 2/2013.
For Convergence and the Cohesion Fund the initial estimates remain unchanged.
3.3.        Heading 2 ¾ Preservation and
Management of Natural Resources
The overall request for
reinforcement of payment appropriations in heading 2 for AB 2/2013
and the present DAB 8/2013 combined amounts to EUR 581 million
(of which EUR 185,3 million in DAB 8/2013), broken down as
follows:
In EUR
million, rounded figures
 Budget Line || Heading || Additional payments AB 2 || Additional payments DAB 8 || Total reinforcement of payments || Difference compared to DAB 2 
 05 04 02 01 || Completion of the European Agricultural Guidance and Guarantee Fund, Guidance Section — Objective 1 regions (2000 to 2006) || 62,376 || 121,133 || 183,509 || 87,593 
 05 04 02 02 || Completion of the special programme for peace and reconciliation in Northern Ireland and the border counties of Ireland (2000 to 2006) || 1,424 || 0,765 || 2,189 ||   
 05 04 05 01 || Rural development programmes || 299,147 || 39,102 || 338,249 || -121,751 
 07 03 07 || LIFE+ (Financial Instrument for the Environment — 2007 to 2013) || 6,503 || 13,497 || 20,000 || 10,000 
 11 03 01 || International fisheries agreements || 142,560 || -43,696 || 98,864 || -43,696 
 11 06 12 || European Fisheries Fund (EFF) — Convergence objective || 22,108 || 52,280 || 74,388 || 40,393 
 11 06 13 || European Fisheries Fund (EFF) — Outside convergence objective || 4,155 || 2,234 || 6,390 ||   
 Total || 395,714 || 185,316 || 581,029 || -27,461 
The net decrease in the request for additional payment
appropriations for this heading as compared to the initial DAB 2/2013
results from the proposed release of appropriations currently in the reserve
for a number of international fisheries agreements, which are no longer
expected to be concluded by the end of 2013. Part of these appropriations are
proposed to be used for further reinforcement of budget lines initially
included in DAB 2/2013, as set out below.
05 04 02 01 ¾ Completion
of the European Agricultural Guidance and Guarantee Fund, Guidance
Section ¾ Objective 1 regions (2000 to 2006)
In its DAB 6/2012,
the Commission identified an amount of around EUR 110 million that
was needed to proceed with closure of old programmes. As this reinforcement was
not approved in 2012 and as no appropriations had been budgeted on this budget
line in 2013, the Commission proposed a total reinforcement of
EUR 95,9 million in DAB 2/2013, after taking into account
amounts that could be covered by assigned revenues. However, since other
programmes are now ready to be closed, a further reinforcement of
EUR 87,6 million is requested as compared to the initial amount
included in DAB 2/2013.
05 04 05 01 — Rural development programmes
Following payments made
in the first three quarters charged on the 2013 budget, including unpaid
amounts from 2012, the payment appropriations remaining available at 16 September 2013
stood at EUR 3 189 million, taking into account already the
reinforcement authorised in AB 2/2013.
The revised Member
States’ forecasts for the last quarter to be charged on budget 2013
(Q3/2013) amount to EUR 4 065 million. However, taking into
account past experience of forecast accuracy and the higher than previously
expected availability of assigned revenues, the Commission has revised its needs
assessment slightly downwards as compared to DAB 2/2013. Based on the
currently expected payment claims, a reinforcement amounting to EUR 39 million
would allow to pay the declarations by Member States for the third quarter of
2013.
07 03 07 ¾ LIFE+
(Financial Instrument for the Environment ¾ 2007 to 2013)
After
a noticeable increase in 2012, the implementation of payment appropriations for
LIFE+ has again significantly increased in 2013. At 16 September 2013,
the implementation rate is twice as high as last year’s (83 % compared to 40 %),
whereas the last quarter is traditionally the most intensive from a payment
implementation point of view. This demonstrates that the programme is now at
cruising speed. Based on a detailed assessment of year-end needs, the
Commission has revised its request upwards, for an additional amount of EUR 13,5 million.
11 06 12 — European
Fisheries Fund ¾ Convergence objective
The initial payment
appropriations on this budget line were exhausted before AB 2/2013 and the
implementation rate including AB 2/2013 has already reached 96 % at 16 September 2013. As for the Cohesion
Policy, the high level of unpaid payment claims at the end of 2012 has
contributed to this situation. Based on the currently
expected payment claims, a reinforcement of EUR 52,3 million would
allow the Commission to proceed with payments within the legal deadline.
40 02 41 — Reserve for differentiated appropriations
(linked to budget item 11 03 01 – International Fisheries Agreements)
Due
to the delayed adoption of a number of international fisheries agreements (more
specifically, the agreements with Morocco, Micronesia, Cook Islands and Salomon
Islands as well as Guinea-Bissau), an amount of EUR 43,7 million in
payment appropriations can be redeployed towards other needs.
3.4.        Heading
3a ¾ Freedom, Security and Justice
The overall request for
reinforcement of payment appropriations in heading 3a for AB 2/2013
and the present DAB 8/2013 combined amounts to EUR 132,7 million
(of which EUR 49,3 million in DAB 8/2013), broken down as
follows:
In EUR
million, rounded figures
 Budget Line || Heading || Additional payments AB 2 || Additional payments DAB 8 || Total reinforcement of payments || Difference compared to DAB 2 
 Solidarity and management of migration flows || 69,909 || 47,032 || 116,941 || 9,441 
 18 02 06 || External Borders Fund || 13,657 || 12,414 || 26,070 || 5,070 
 18 02 09 || European Return Fund || 17,559 || 9,441 || 27,000 ||   
 18 03 03 || European Refugee Fund (ERF) || 19,510 || 14,861 || 34,371 || 4,371 
 18 03 05 || European Migration Network || 0,650 || 0,350 || 1,000 ||   
 18 03 09 || European Fund for the Integration of third-country nationals || 18,534 || 9,966 || 28,500 ||   
 Security and safeguarding liberties || 9,430 || - || 9,430 || -5,070 
 18 05 08 || Prevention, preparedness and consequence management of terrorism || 1,301 || - || 1,301 || -0,699 
 18 05 09 || Prevention of and fight against crime || 8,129 || - || 8,129 || -4,371 
 Other programmes and actions || 4,130 || 2,220 || 6,350 || 0,000 
 18 02 04 || Schengen information system (SIS II) || 1,951 || 1,049 || 3,000 ||   
 18 03 14 02 || European Asylum Support Office — Contribution to Title 3 || 0,975 || 0,525 || 1,500 ||   
 18 03 17 || Preparatory action — Enable the resettlement of refugees during emergency situations || 0,423 || 0,227 || 0,650 ||   
 18 08 01 || Prince — Area of freedom, security and justice || 0,780 || 0,420 || 1,200 ||   
 Total || 83,469 || 49,252 || 132,721 || 4,371 
External Borders Fund and European Refugee Fund
The
updated payment needs for the External Borders Fund and the European
Refugee Fund under Solidarity and management of migration flows cover the
intermediate and final payments to be made on grants and contracts from 2011
and 2012, as well as pre-financing payments on 2012 and 2013 calls. Also against
the background of postponement of certain pre-financings for the year 2012, the
need for reinforcement in 2013 is confirmed.
As far as the External Borders
Fund is concerned, some 30 % of the appropriations have been in reserve
linked to Schengen governance issues. In order to ensure equal treatment for
all Member States, the Commission decided to suspend the implementation until
the governance issues were resolved. This allowed to temporarily use payment
appropriations from the External Borders Fund to urgently reinforce Prevention,
preparedness and consequence management of terrorism (CIPS) and Prevention
of and fight against crime (ISEC) through transfer DEC 11/2013. Now
that the Schengen governance reserve has been lifted, the implementation of the
External Borders Fund can resume. That is why the amounts initially foreseen
for CIPS and ISEC can be re-assigned to the External Borders Fund, as a partial
compensation (+ EUR 5,1 million). Similarly, the amounts proposed
to be made available from the Culture and Health programmes under
heading 3b, as set out below, are proposed to be re-assigned to the
European Refugee Fund to help Member States that face increasing massive
influxes of refugees.
3.5.        Heading
3b ¾ Citizenship
The overall request for
reinforcement of payment appropriations in heading 3b for AB 2/2013
and the present DAB 8/2013 combined amounts to EUR 10,8 million
(of which EUR 0,9 million in DAB 8/2013), broken down as
follows:
In EUR million, rounded figures
 Budget Line || Heading || Additional payments AB 2 || Additional payments DAB 8 || Total reinforcement of payments || Difference compared to DAB 2 
 09 02 06 || Preparatory action — Erasmus for Journalists || 0,098 || 0,052 || 0,150 ||   
 15 04 44 || Culture Programme (2007 to 2013)     || 2,276 || - || 2,276 || -1,224 
 15 04 66 01 || MEDIA 2007 — Support programme for the European audiovisual sector || 1,626 || 0,874 || 2,500 ||   
 17 03 06 || Union action in the field of health || 5,853 || - || 5,853 || -3,147 
 Total || 9,852 || 0,927 || 10,779 || -4,371 
The
review of year-end needs for the budget lines included in DAB 2/2013 under
heading 3b has shown that the second tranche of reinforcement of payment
appropriations is no longer necessary for the Culture and Health programmes. As
regards the Culture programme, the downwards revision of year-end needs
(- EUR 1,2 million) is due to less pre-financing to be paid
further to delays in the bank guarantee to be obtained by beneficiaries and in
the receipt of intermediate and final reports. As for Health, the downward
revision of payments needs (- EUR 3,1 million) reflects a slight
delay in the implementation of the actions under the Public Health programme. The
related amounts are proposed to be used for the further reinforcement of the
European Refugee Fund, as set out above under heading 3a.
3.6.        Heading 4 ¾ EU as a Global
Player
The overall request for
reinforcement of payment appropriations in heading 4 for AB 2/2013 and the
present DAB 8/2013 combined amounts to EUR 531,7 million (of
which EUR 213,4 million for DAB 8/2013), broken down as follows:
In EUR
million, rounded figures
 Budget Line || Heading || Additional payments AB 2 || Additional payments DAB 8 || Total reinforcement of payments || Difference compared to DAB 2 
 Instrument for Pre-Accession assistance (IPA) || 124,536 || 22,554 || 147,091 || -44,409 
 04 06 01 || Instrument for Pre-Accession Assistance (IPA) — Human resources development || 23,086 || 12,414 || 35,500 ||   
 13 05 02 || Instrument for Pre-Accession Assistance (IPA) — Regional development component || 82,591 || - || 82,591 || -44,409 
 13 05 03 02 || Cross-border cooperation (CBC) and participation of candidate and potential candidate countries in Structural Funds’ transnational and interregional cooperation programmes — Contribution from Heading 4 || 4,552 || 2,448 || 7,000 ||   
 22 02 07 01 || Regional and horizontal programmes || 14,307 || 7,693 || 22,000 ||   
 European Neighbourhood and Partnership Instrument (ENPI) || 74,787 || 40,213 || 115,000 || 0,000 
 19 08 01 01 || European Neighbourhood and Partnership financial cooperation with Mediterranean countries || 6,503 || 3,497 || 10,000 ||   
 19 08 01 02 || European Neighbourhood and Partnership financial assistance to Palestine, the peace process and UNRWA || 45,522 || 24,478 || 70,000 ||   
 19 08 01 03 || European Neighbourhood and Partnership financial cooperation with eastern Europe || 22,761 || 12,239 || 35,000 ||   
 Development Cooperation Instrument (DCI) || 40,320 || 18,183 || 58,503 || -3,497 
 19 09 01 || Cooperation with developing countries in Latin America || 13,006 || 6,994 || 20,000 ||   
 19 10 01 01 || Cooperation with developing countries in Asia || 6,503 || 3,497 || 10,000 ||   
 21 03 01 || Non-State actors in development || 6,503 || 3,497 || 10,000 ||   
 21 03 02 || Local authorities in development || 4,552 || 2,448 || 7,000 ||   
 21 05 02 || Global Fund to Fight Aids, Tuberculosis and Malaria (GFATM) || 3,252 || 1,748 || 5,000 ||   
 21 06 02 || Relations with South Africa || 6,503 || - || 6,503 || -3,497 
 Instrument for Stability (IfS) || 34,467 || 3,846 || 38,313 || -14,687 
 19 06 01 01 || Crisis response and preparedness (Instrument for Stability) || 27,313 || - || 27,313 || -14,687 
 19 06 02 01 || Actions in the area of risk mitigation and preparedness relating to chemical, nuclear and biological materials or agents (Instrument for Stability) || 3,902 || 2,098 || 6,000 ||   
 19 06 03 || Trans-regional actions in the areas of organised crime, trafficking, protection of critical infrastructure, threats to public health and the fight against terrorism (Instrument for Stability) || 3,252 || 1,748 || 5,000 ||   
 European Instrument for Democracy and Human Rights (EIDHR) || 13,006 || 6,994 || 20,000 || 0,000 
 19 04 01 || European Instrument for Democracy and Human Rights (EIDHR) || 13,006 || 6,994 || 20,000 ||   
 Humanitarian Aid || 29,915 || 120,910 || 150,825 || 104,825 
 23 02 01 || Humanitarian aid || 27,964 || 119,861 || 147,825 || 104,825 
 23 02 02 || Food aid || 1,951 || 1,049 || 3,000 ||   
 Other programmes and actions || 1,301 || 0,699 || 2,000 || 0,000 
 20 02 03 || Aid for trade — Multilateral initiatives || 1,301 || 0,699 || 2,000 ||   
 Total || 318,332 || 213,400 || 531,732 || 42,232 
Humanitarian aid
With
the deteriorating situation in major crises such as Mali, Sahel, the Horn of
Africa and especially Syria, thus far the Humanitarian aid and Food
aid lines have been reinforced by EUR 377,7 million in commitment
and only EUR 183 million in payment appropriations. That comes on top
of a significant increase (+ EUR 167 million) in the level of
outstanding commitments at the end of 2012 compared to a year earlier. This
makes it extremely difficult for the Commission to honour its contractual
obligations and to sign new contracts for the amounts pledged, as is the case
for Syria. Payment implementation as at 16 September 2013 already
stood at 88 %.
Therefore, the Commission
proposes a substantial further reinforcement of payment appropriations for
humanitarian aid, amounting to EUR 120,9 million. This represents an
increase of EUR 104,8 million as compared to DAB 2/2013. The
Commission proposes to partly offset these outstanding needs for humanitarian
aid through redeployment (EUR 43,7 million) from the reserve for
international fisheries agreements as set out in section 3.3 above, with
lower requests for other budget lines in heading 4 (EUR 62,6 million),
and additional appropriations (EUR 14,7 million) requested in this
amending budget compared to DAB 2/2013. This amount is additional to the
reinforcements of EUR 30 million approved through the budgetary
authority transfer DEC 18/2013 and EUR 79,1 million proposed
within the ‘global transfer’.
The redeployment within
the amounts initially foreseen in DAB 2/2013 under heading 4 reflects
the use of internal transfers to meet the initial needs assessment for IPA – Regional
development component (- EUR 44,4 million), the already
approved reinforcement of EUR 21 million through transfer DEC 21/2013
for the Instrument for Stability – Crisis response and preparedness
(-EUR 14,7 million) as well as a revised schedule for the payment of
the variable tranches of budget support for DCI – Relations with
South Africa (- EUR 3,5 million).
4.           Conclusion
The updated review of
payment needs in the 2013 budget has confirmed a major shortage of payment
appropriations, after taking into account the EUR 7,3 billion authorised
in AB 2/2013 and all the possible sources for redeployment. Therefore, the
Commission requests EUR 3,9 billion in additional payment
appropriations available under the payment ceiling of
the MFF for 2013.
5.           Summary table by MFF heading
 Financial framework Heading/subheading || Revised 2013 Financial framework || Budget 2013 (incl. AB 1 to AB 5 + DAB 6 to DAB 7/2013) || DAB 8/2013 (DAB 2bis) || Budget 2013 (incl. AB 1 to AB 5 + DAB 6 to DAB 8/2013) 
 CA || PA || CA || PA || CA || PA || CA || PA 
 1. SUSTAINABLE GROWTH ||   ||   ||   ||   ||   ||   ||   ||   
 1a. Competitiveness for growth and employment || 15 670 000 000 ||   || 16 168 150 291 || 12 543 032 370 ||   || 343 595 725 || 16 168 150 291 || 12 886 628 095 
 Margin ||   ||   || 1 849 709 ||   ||   ||   || 1 849 709 ||   
 1b. Cohesion for growth and employment || 54 974 000 000 ||   || 55 108 049 037 || 53 202 023 518 ||   || 3 147 521 218 || 55 108 049 037 || 56 349 544 736 
 Margin[6] ||   ||   || 0 ||   ||   ||   || 0 ||   
 Total || 70 644 000 000 ||   || 71 276 199 328 || 65 745 055 888 ||   || 3 491 116 943 || 71 276 199 328 || 69 236 172 831 
 Margin[7] ||   ||   || 1 849 709 ||   ||   ||   || 1 849 709 ||   
 2. PRESERVATION AND MANAGEMENT OF NATURAL RESOURCES ||   ||   ||   ||   ||   ||   ||   ||   
 Of which market related expenditure and direct payments || 48 574 000 000 ||   || 43 956 548 610 || 43 934 188 711 ||   ||   || 43 956 548 610 || 43 934 188 711 
 Total || 61 289 000 000 ||   || 60 159 241 416 || 57 882 716 075 ||   || 185 315 751 || 60 159 241 416 || 58 068 031 826 
 Margin ||   ||   || 1 129 758 584 ||   ||   ||   || 1 129 758 584 ||   
 3. CITIZENSHIP, FREEDOM, SECURITY AND JUSTICE ||   ||   ||   ||   ||   ||   ||   ||   
 3a. Freedom, Security and Justice || 1 661 000 000 ||   || 1 440 827 200 || 1 001 152 237 ||   || 49 252 413 || 1 440 827 200 || 1 050 404 650 
 Margin ||   ||   || 220 172 800 ||   ||   ||   || 220 172 800 ||   
 3b. Citizenship || 746 000 000 ||   || 753 287 942 || 663 875 907 ||   || 926 652 || 753 287 942 || 664 802 559 
 Margin ||   ||   || 7 320 000 ||   ||   ||   || 7 320 000 ||   
 Total || 2 407 000 000 ||   || 2 194 115 142 || 1 665 028 144 ||   || 50 179 065 || 2 194 115 142 || 1 715 207 209 
 Margin[8] ||   ||   || 227 492 800 ||   ||   ||   || 227 492 800 ||   
 4. EU AS A GLOBAL PLAYER || 9 595 000 000 ||   || 9 583 118 711 || 6 727 745 950 ||   || 213 400 386 || 9 583 118 711 || 6 941 146 336 
 Margin[9] ||   ||   || 275 996 289 ||   ||   ||   || 275 996 289 ||   
 5. ADMINISTRATION || 8 492 000 000 ||   || 8 430 374 740 || 8 430 049 740 ||   ||   || 8 430 374 740 || 8 430 049 740 
 Margin[10] ||   ||   || 147 625 260 ||   ||   ||   || 147 625 260 ||   
 6.COMPENSATION || 75 000 000 ||   || 75 000 000 || 75 000 000 ||   ||   || 75 000 000 || 75 000 000 
 Margin ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL || 152 502 000 000 || 144 285 000 000 || 151 718 049 337 || 140 525 595 797 ||   || 3 940 012 145 || 151 718 049 337 || 144 465 607 942 
 Margin [11],[12],[13] ||   ||   || 1 782 722 642 || 3 940 012 145 ||   ||   || 1 782 722 642 || 0 
[1]               OJ L 298, 26.10.2012, p. 1.
[2]               OJ L 66, 8.3.2013, p. 1.
[3]               COM(2013) 518.
[4]               COM(2013) 655.
[5]               COM(2013) 557.
[6]               EUR 134,0 million
above the ceiling are financed by the mobilisation of the Flexibility
Instrument in 2013.
[7]               The European Globalisation adjustment
Fund (EGF) is not included in the calculation of the margin under
Heading 1a (EUR 500 million).
[8]               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).
[9]               The 2013 margin for heading 4 does not
take into account the appropriations related to the Emergency Aid Reserve
(EUR 264,1 million).
[10]             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 pension scheme.
[11]             EUR 134,0 million
above the ceiling for commitments are financed by the mobilisation of the
Flexibility Instrument in 2013.
[12]             The global margin for commitments does not
take into account the appropriations related to the EGF
(EUR 500 million), the EUSF (EUR 14,7 million), the EAR
(EUR 264,1 million), and the staff contributions to the pensions
scheme (EUR 86 million).
[13]             The global margin for payments does not
take into account the appropriations related to the EUSF
(EUR 14,7 million), the EAR (EUR 80 million), and to the
staff contributions to the pensions scheme (EUR 86 million).