DRAFT AMENDING BUDGET N° 6 TO THE GENERAL BUDGET 2014 GENERAL STATEMENT OF REVENUE STATEMENT OF EXPENDITURE BY SECTION Section III – Commission Section VIII – European Ombudsman
Date: 2014-10-17
Institutions: European Commission
Subjects: amending budget, commitment of expenditure, common fisheries policy, draft budget (EU), emergency aid, fund (EU), general budget (EU), own resources, payment appropriation, sustainable development



COM_2014_649_784355_EN_ACTE_1_f_1.docx






EUROPEAN COMMISSION
Brussels, 17.10.2014
COM(2014) 649 final
DRAFT AMENDING BUDGET N° 6TO THE GENERAL BUDGET 2014
GENERAL STATEMENT OF REVENUE
STATEMENT OF EXPENDITURE BY SECTIONSection III – CommissionSection VIII – European Ombudsman







DRAFT AMENDING BUDGET N° 6
TO THE GENERAL BUDGET 2014


GENERAL STATEMENT OF REVENUE


STATEMENT OF EXPENDITURE BY SECTION
Section III – Commission
Section VIII – European Ombudsman















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 Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years 2014-2020
2
, and in particular Article 13 thereof,


–the general budget of the European Union for the financial year 2014 adopted on 20 November 2013
3
,


–the amending budget No 1/2014
4
, adopted on 16 April 2014,


–the draft amending budget No 2/2014
5
, adopted on 15 April 2014,


–the draft amending budget No 3/2014
6
, adopted on 28 May 2014,


–the draft amending budget No 4/2014
7
, adopted on 9 July 2014, as amended on 16 October 2014
8
,


–the draft amending budget No 5/2014
9
, adopted on 8 September 2014,


The European Commission hereby presents to the budgetary authority the draft amending budget No 6 to the 2014 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
   


2.
   Own Resources
   


2.1. 
   Traditional Own Resources
   


2.2. 
   VAT and GNI own resources balances
   


2.3. 
   GNI own resources contributions
   


3.
   Changes in commitment and payment appropriations (Section III)
   




3.1. 
   European Maritime and Fisheries Fund (Heading 2)
   


3.2. 
   Sustainable Fisheries Partnership Agreements (Heading 2)
   


3.3. 
   Emergency Aid Reserve (Heading 4)
   


4.
   European Ombudsman (Section VIII)
   


5.
   Summary table by MFF heading
   



1.Introduction


Draft Amending Budget (DAB) No 6 for the year 2014 concerns the following:


–A revision of the forecast of Traditional Own Resources (customs duties), VAT and GNI  own resources balances.


–A reduction in the budgetary appropriations related to the European Maritime and Fisheries Fund and the reserve for Sustainable Fisheries Partnership Agreements, for a total amount of EUR 76,3 million in commitment appropriations and EUR 6,2 million in payment appropriations. It is proposed to redeploy the related payment appropriations to the Emergency Aid Reserve.


–An increase in the budgetary appropriations, both commitments and payments of EUR 93 500 for the European Ombudsman, in order to ensure that all salary remunerations due in 2014 can be paid by the end of the year.


The overall impact in terms of expenditure, is a decrease of EUR 76,2 million commitment appropriations, and an increase of EUR 93 500 for payment appropriations.


The overall impact in terms of revenue, is a decrease in the requirements for Own Resources of EUR 9 527,7 million. In addition, the distribution by Member State is adjusted.


2.Own Resources


In accordance with Article 16 of Council Regulation (EC, Euratom) No 1150/2000 of 22 May 2000
10
, the Commission has revised the forecasts for own resources. This refers in particular to traditional own resources and to VAT (value added tax) and GNI (gross national income) balances.


2.1. Traditional Own Resources 


The Commission proposes to increase Traditional Own Resources (TOR) by EUR 420 million in chapter 12 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 might revise its figures in the course of the budgetary procedure.


2.2. VAT and GNI own resources balances


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 a negative amount of EUR 285 million for the VAT balances and a positive amount of EUR 9 813 million for the GNI balances, having a global impact of EUR 9 528 million, which reduces the Member States' GNI contributions accordingly
11
. This positive amount relates to chapters 31
12
 and 32
13
 of the revenue side of the budget. The amount for the GNI balances is exceptionally high due to the work carried out by Member States to ensure that existing GNI reservations can be lifted in addition to the major revisions of GNI data made by some of them.


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. 




2.3. GNI own resources contributions


Taking into account the revised forecasts for traditional own resources, VAT and GNI balances as set out above, the resulting overall impact on Member States' GNI contributions of this DAB 6/2014 is a decrease of EUR 9 947,7million.





Member State




Draft amending budget No. 5/2014




Draft amending budget No. 6/2014




New amount






Belgium




2 920 454 359




- 289 405 330




2 631 049 029






Bulgaria




 297 197 481




- 29 451 080




 267 746 401






Czech Republic




1 010 207 025




- 100 107 470




 910 099 555






Denmark




1 974 528 487




- 195 667 864




1 778 860 623






Germany




21 577 311 887




-2 138 225 185




19 439 086 702






Estonia




 138 414 059




- 13 716 279




 124 697 780






Ireland




1 067 000 044




- 105 735 430




 961 264 614






Greece




1 338 133 757




- 132 603 695




1 205 530 062






Spain




7 650 473 560




- 758 131 287




6 892 342 273






France




15 929 748 815




-1 578 574 303




14 351 174 512






Croatia




 314 195 881




- 31 135 553




 283 060 328






Italy




11 727 836 170




-1 162 181 591




10 565 654 579






Cyprus




 114 142 533




- 11 311 068




 102 831 465






Latvia




 183 133 065




- 18 147 753




 164 985 312






Lithuania




 259 834 181




- 25 748 526




 234 085 655






Luxembourg




 241 820 995




- 23 963 492




 217 857 503






Hungary




 728 746 903




- 72 215 899




 656 531 004






Malta




 52 399 087




- 5 192 539




 47 206 548






Netherlands




4 649 296 143




- 460 726 626




4 188 569 517






Austria




2 393 635 627




- 237 199 703




2 156 435 924






Poland




2 925 159 273




- 289 871 568




2 635 287 705






Portugal




1 231 673 537




- 122 053 914




1 109 619 623






Romania




1 074 854 216




- 106 513 748




 968 340 468






Slovenia




 262 105 545




- 25 973 610




 236 131 935






Slovakia




 539 994 575




- 53 511 300




 486 483 275






Finland




1 475 419 202




- 146 208 133




1 329 211 069






Sweden




3 258 647 238




- 322 918 889




2 935 728 349






United Kingdom




15 047 915 871




-1 491 188 191




13 556 727 680






 Article 1 4 0 — Total 




100 384 279 516




-9 947 680 026




90 436 599 490





3.Changes in commitment and payment appropriations (Section III)


3.1. European Maritime and Fisheries Fund (Heading 2)


Due to the late adoption of the legal basis for the European Maritime and Fisheries Fund, a number of actions that were planned will not take place as expected in 2014.


The budget for the administrative and support expenditure (budget item 11 01 04 01), intially proposed on the basis of a full year, will not be spent in its entirity. Similarly, the contribution to the executive agency for Small-and Medium-sized Entreprises (budget item 11 01 06 01), that will receive the delegation for managing part of the programme, can be reduced, as recruitments will be made later than originally planned. Both budget lines concern non-differentiated expenditure, with the corresponding EUR 1,6 million becoming available in commitment and payment appropriations.


The late adoption of the legal basis has also delayed the implementation of operational expenditure of the European Maritime and Fisheries Fund (EMFF) under direct management. A EUR 2,8 million reduction in commitment appropriations is proposed for Governance and Communication (budget item 11 06 62 04), as communication actions have been delayed and four advisory councils will not yet be operational by the end of 2014. A reduction (EUR 0,9 million) can also be made in commitments for Scientific advice and knowledge (budget item 11 06 62 01).


The following table summarises the effect of DAB 6/2014 on the corresponding budget lines:


(in EUR )








Budget 2014





Draft Amending Budget
 No 6/2014




Budget 2014
(incl. DAB 6/2014)









Commitments




Payments




Commitments




Payments




Commitments




Payments






—




Support expenditure for maritime affairs and fisheries – Non operational administrative and techncial assistance (11 01 04 01) 




4 100 000




4 100 000




- 774 900




- 774 900




3 325 100




3 325 100






—




Executive Agency for Small- and Medium-sized Entreprises – Contribution from the European Maritime and Fisheries Fund (EMFF) (11 01 06 01)




1 592 000




1 592 000




- 809 000




- 809 000




783 000




783 000






—




Scientific advice and knowledge (11 06 62 01)




14 349 220




21 639 419




- 936 000







13 413 220




21 639 419






—




Governance and Communication (11 06 62 04)




6 809 400




4 857 767




- 2 765 500







4 043 900




4 857 767






Total




26 850 620




32 189 186




- 5 285 400




- 1 583 900




21 565 220




30 605 286





3.2. Sustainable Fisheries Partnership Agreements (Heading 2)


After analysis of the status of negotiations linked to the Sustainable Fisheries Partnership Agreements and the evaluation of the possible dates of entry into force, in DAB 3/2014 the Commission had already identified an amount of EUR 65 million in payment appropriations that could be released from the corresponding reserve (40 02 41). Following an updated assessement, it now appears that a further EUR 4,6 million in payment appropriations can be released and are available for redeployment. This amount has not been included in the Global Transfer (DEC 31/2014), as amounts in reserve are not eligible for a transfer to another budget line. Reflecting the overall reduction in payments from the reserve line proposed in DAB 3/2014 and in this DAB 6/2014, the EUR 71 million in commitment approriations in the reserve can also be reduced.





(in million EUR,)







Sustainable fisheries partnership agreements




Budget 2014 (DAB 3 included)




Draft Amending Budget
 No 6/2014




Budget 2014 
(incl. DAB 6/2014)









Commitments




Payments




Commitments




Payments




Commitments




Payments






Reserve (40 02 41)




115 342 000




47 342 000




-71 000 000




-4 567 000




44 342 000




42 775 000





3.3. Emergency Aid Reserve (Heading 4)


The Commission proposes to redeploy the EUR 6,2 million in payment appropriations identified in sections 3.1 and 3.2 above to the Emergency Aid Reserve, to help facing possible humanitarian crises till the end of the year.





(in million EUR,)







Emergency Aid Reserve




Budget 2014 (DAB 3 included)




Draft Amending Budget
 No 6/2014




Budget 2014 
(incl. DAB 6/2014)









Commitments




Payments




Commitments




Payments




Commitments




Payments






Reserve (40 02 42)




297 000 000




150 000 000







6 150 900




297 000 000




156 150 900





4.European Ombudsman (Section VIII)


In accordance with article 41(2) of the Financial Regulation, the European Ombudsman has requested a draft amending budget.


The authorised budget for 2014 did not make any provision for the salary adjustment as of 1 July 2012. However, the increase in salaries for 2012 that was finally decided in April 2014, including its retroactive effect as from 1 July 2012, resulted in additional expenditure amounting to EUR 193 800 as regards the remunerations to be paid by the European Ombudsman in 2014. This is a significant amount (+3 % of the authorised appropriations related to salary lines) for an institution with a comparatively small budget like the European Ombudsman, for which most expenditure is linked to contractual obligations.




The European Ombudsman has already made a determined effort to absorb as much of this additional expenditure as possible, in particular by reallocating funds foreseen for other purposes in the 2014 budget. A request for a transfer to cover over 50 % of the needs was approved by the Budgetary Authority in September. Nevertheless, without the increase of EUR 93 500 now requested for both commitment and payment appropriations, the European Ombudsman will be unable to ensure that all remunerations due in 2014 can be paid before the end of the year.


5.Summary table by MFF heading





Heading




Budget 2014 
(incl. AB 1 and DAB 2-5/2014)




Draft Amending Budget 6/2014




Budget 2014 
(incl. AB 1 and DAB 2-6/2014)









CA




PA




CA




PA




CA




PA






1.




Smart and inclusive growth




63 986 340 779




66 374 487 058










63 986 340 779




66 374 487 058






Ceiling 




63 973 000 000













63 973 000 000









Margin




75 989 221













75 989 221









1a




Competitiveness for growth and jobs




16 484 010 779




12 028 322 326










16 484 010 779




12 028 322 326






Ceiling




16 560 000 000













16 560 000 000









Margin




75 989 221













75 989 221









1b 




Economic  social and territorial cohesion




47 502 330 000




54 346 164 732










47 502 330 000




54 346 164 732






Ceiling




47 413 000 000













47 413 000 000









Margin




-89 330 000













-89 330 000









Flexibility Instrument




89 330 000













89 330 000









Margin




0













0









2. 




Sustainable growth: natural resources




59 267 214 684




56 564 930 369




-76 285 400




-6 150 900




59 190 929 284




56 558 779 469






Ceiling




59 303 000 000













59 303 000 000









Margin




35 785 316













112 070 716









Of which: European Agricultural Guarantee Fund (EAGF) — Market related expenditure and direct payments




43 778 100 000




43 776 956 403










43 778 100 000




43 776 956 403






Sub-ceiling




44 130 000 000













44 130 000 000









Net transfer between EAGF and EAFRD




351 900 000













351 900 000









Margin
























3. 




Security and citizenship




2 171 998 732




1 677 039 976










2 171 998 732




1 677 039 976






Ceiling




2 179 000 000













2 179 000 000









Margin




7 001 268













7 001 268









4. 




Global Europe




8 325 000 000




6 842 004 256










8 325 000 000




6 842 004 256






Ceiling




8 335 000 000













8 335 000 000









Margin




10 000 000













10 000 000









5. 




Administration




8 404 517 081




8 405 389 881




93 500




93 500




8 404 610 581




8 405 483 381






Ceiling




8 721 000 000













8 721 000 000









Margin




316 482 919













316 389 419









Of which: Administrative expenditure of the institutions




6 797 392 438




6 798 265 238




93 500




93 500




6 797 485 938




6 798 358 738






Sub-ceiling




7 056 000 000













7 056 000 000









Margin




258 607 562













258 514 062









6. 




Compensations




28 600 000




28 600 000










28 600 000




28 600 000






Ceiling




29 000 000













29 000 000









Margin




400 000













400 000









Total




142 183 671 276




139 892 451 540




-76 191 900




-6 057 400




142 107 479 376




139 886 394 140






Ceiling




142 540 000 000




135 866 000 000










142 540 000 000




135 866 000 000






Flexibility Instrument




89 330 000













89 330 000









Contingency Margin







4 026 700 000













4 026 700 000






Margin




445 658 724




248 460










521 850 624




6 305 860









Special Instruments




503 179 528




396 998 528







6 150 900




503 179 528




403 149 428






Grand Total




142 686 850 804




140 289 450 068




-76 191 900




93 500




142 610 658 904




140 289 543 568










(1)
OJ L 298, 26.10.2012, p. 1.



(2)
OJ L 347, 20.12.2013, p. 884.



(3)
OJ L 51, 20.2.2014, p. 1.



(4)
 OJ L 204, 10.7.2014, p.1.



(5)
 COM(2014) 234, 15.4.2014.



(6)
 COM(2014) 329, 28.5.2014.



(7)
 COM(2014) 461, 9.7.2014.



(8)
 COM(2014) 641, 16.10.2014.



(9)
 COM(2014) 564, 8.9.2014.



(10)
 OJ L 130, 31.5.2000, p. 1.



(11)
 The budgeting of this amount is intended to counterbalance the financial impact for the Member States for the VAT and GNI balances they have to make available on the first working day of December 2014.



(12)
 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.



(13)
 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.