AMENDING LETTER N° 2 TO THE DRAFT GENERAL BUDGET 2016 Updating of the estimated needs for agricultural expenditure and fisheries Managing the refugee crisis: immediate budgetary measures under the European Agenda on Migration
Date: 2015-10-14
Institutions: Directorate-General for Budget, European Commission
Subjects: EU programme, agricultural expenditure, aid to refugees, amending budget, budgetary expenditure, draft budget, fisheries policy, fund (EU), general budget (EU), migration

EUROPEAN 
COMMISSION 

Brussels, 14.10.2015 
COM(2015) 513 final 

AMENDING LETTER N° 2 
TO THE DRAFT GENERAL BUDGET 2016 

Updating of the estimated needs for agricultural expenditure and fisheries 
Managing the refugee crisis: immediate budgetary measures under the European 
Agenda on Migration 

EN 

   EN 

 
 
 
 
  
 
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 Union1, and in particular Article 39 thereof, 

the draft general budget of the European Union for the financial year 2016 adopted 
by the Commission on 24 June 20152, 

the Amending Letter 1/2016 adopted by the Commission on 26 June 20153, 

the  European  Commission  hereby  presents  to  the  budgetary  authority  the  amending  letter 
No 2  to  the  draft  general  budget  of  the  European  Union  for  the  financial  year  2016  for  the 
reasons set out in the explanatory memorandum. 

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. 

1   
2  
3  

OJ L 298, 26.10.2012, p. 1. 
COM(2015) 300, 24.6.2015. 
COM(2015) 317, 26.6.2015. 

2 

 
 
  
 
 
 
                                                 
TABLE OF CONTENTS 

1 

2 

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

AGRICULTURE AND FISHERIES ......................................................................................................................... 5 

2.1  MAIN CHANGES PROPOSED ........................................................................................................................................ 5 
2.2  EUROPEAN AGRICULTURAL GUARANTEE FUND (EAGF) .......................................................................................... 6 
2.3  OTHER AGRICULTURAL EXPENDITURE OUTSIDE THE EAGF ...................................................................................... 9 
2.4  SUSTAINABLE FISHERIES PARTNERSHIP AGREEMENTS............................................................................................ 10 
2.5  NOMENCLATURE CHANGES AND BUDGETARY REMARKS ......................................................................................... 10 

IMMEDIATE MEASURES TO MANAGE THE REFUGEE CRISIS UNDER THE EUROPEAN AGENDA 

3 
ON MIGRATION ............................................................................................................................................................... 10 

INTRODUCTION........................................................................................................................................................ 10 
3.1 
3.2  HEADING 3: SECURITY AND CITIZENSHIP ................................................................................................................ 11 
3.3  HEADING 4: GLOBAL EUROPE ................................................................................................................................. 14 
3.4  HEADING 5: ADMINISTRATION ................................................................................................................................ 15 

4 
COVERING EIF FUNDS DUE UNDER THE EUROPEAN FUND FOR STRATEGIC INVESTMENT 
(EFSI)................................................................................................................................................................................... 15 

5 

6 

6 

AGENCY FOR THE COOPERATION OF ENERGY REGULATORS (ACER).............................................. 16 

FOOD AND FEED SAFETY ................................................................................................................................... 16 

SUMMARY TABLE BY HEADING OF THE MULTIANNUAL FINANCIAL FRAMEWORK ................... 17 

3 

 
 
  
 
1 

INTRODUCTION 

This Amending Letter No 2 (AL2) to the draft budget for the year 2016 covers the following: 

⎯  The  updating  of  the  estimated  needs,  assigned  revenue  and  appropriations  for  agricultural 
expenditure. In addition to changing market factors, the AL 2/2016 also incorporates the impact of 
decisions in the agricultural sector since the draft budget (DB) 2016 was presented in May 2015 as 
well as other proposals expected to have a significant effect during the budget year. After taking 
into  account  of  the  additional  revenue  assigned  to  the  EAGF,  the  net  result  for  heading  2  is  a 
decrease of EUR 477,3 million for both commitment and payment appropriations. 

⎯  An update of the situation for Sustainable Fisheries Partnership Agreements, to take account of the 
latest estimates, on the basis of which the necessary expenditure is EUR 11 million lower, for both 
commitment and payment appropriations, than originally estimated. 

⎯  The  necessary  reinforcements  for  immediate  measures  to  manage  the  refugee  crisis  under  the 
European  Agenda  on  Migration,  building  on  the  measures  proposed  in  draft  amending  budget 
7/2015, as follows: 

o  Heading 3: Security and Citizenship. A reinforcement of emergency assistance in favour of 
Member  States  more  exposed,  the  increased  capacity  of  the  three  front-line  agencies,  as 
well  as  the  integration  of  the  two  relocation  decisions  taken  in  September  2015  and  the 
need  for  a  further  top-up  of  funding  under  the  Asylum,  Migration  and  Integration  Fund 
(AMIF) and the Internal Security Fund (ISF). Altogether, the proposed measures for 2016 
require  a  reinforcement  of  EUR 1 380 million  in  commitment  appropriations  and 
EUR 778,8 million in payment appropriations. Consequently, the Commission proposes to 
mobilise  the  Flexibility  Instrument  for  an  amount  of  EUR 1 504,0 million  in  heading  3. 
This  includes  EUR 124,0 million,  which  the  Commission  already  proposed  to  mobilise 
from the Flexibility Instrument together with the initial draft budget 2016; such a proposal  
is now repealed and replaced by the new draft act accompanying this amending letter. 

o  Heading  4:  Global  Europe.  An  increase  for  Humanitarian  Aid  of  EUR 150 million  in 
commitment  appropriations  and  EUR 405 million  in  payment  appropriations,  and  a 
reinforcement of the payment appropriations for the European Neighbourhood Instrument 
of EUR 210 million. 

o  Heading 5: Administration. An increase of EUR 23,9 million in commitment and payment 

appropriations to cover salaries and missions. 

⎯  An  increase  of  EUR 5 million  in  commitment  and  payment  appropriations  to  cover  the  fees 
obligations towards the European Investment Fund (EIF) for the implementation of the new small 
and  medium-sized  enterprise  (SME)  window  products  under  the  European  Fund  for  Strategic 
Investments (EFSI). 

⎯  A budgetary neutral amendment to the structure of the establishment plan of the Agency for the 

Cooperation of Energy Regulators (ACER). 

⎯  A reduction of EUR 20,0 million in payment appropriations under the Food and Feed programme. 

The  net  budgetary  impact  of  these  changes  across  all  headings  is  an  increase  in  commitment 
appropriations of EUR 1 070,6 million, and in payment appropriations of EUR 914,5 million. 

4 

 
 
  
 
2 

AGRICULTURE AND FISHERIES 

2.1 

Main changes proposed 

With  this  amending  letter,  the  Commission  is  proposing  to  reinforce  expenditure  for  agriculture  by 
EUR 660,7 million  compared  to  DB  2016.  This  increase  of  needs  is  mainly  due  to  the  financial 
consequences of the temporary support measures following the extension of the Russian embargo on 
imports  of  certain  agricultural  products  from  the  EU  as  well  as  for  some  additional  measures  to 
support sectors facing difficult market situations, in particular dairy and pigmeat. When excluding the 
impact of these extraordinary measures, amounting to almost EUR 700 million (see table below), the 
updated estimates for EAGF expenditure are EUR 37 million lower compared to the DB 2016. 

Temporary  support  measures  already  adopted  and  currently  under  preparation  by  the 
Commission since DB 2016  

Budget line 

Measure 

Amount  
(EUR million) 

Measures already adopted (EUR 197,3 million), of which 
05 02 08 03 
05 02 08 99 
05 02 12 02 

Extension of the temporary exceptional support measures for producers of certain 
fruit and vegetables (Commission Delegated Regulation (EU) 2015/1369) 
Private  storage  and  public  intervention  for  skimmed  milk  powder  (Commission 
Implementing Regulation (EU) 2015/1548 and Commission Delegated Regulation 
(EU) 2015/1549) 
Private  storage  and  public  intervention  for  butter  (Commission  Implementing 
Regulation  (EU)  2015/1548  and  Commission  Delegated  Regulation  (EU) 
2015/1549) 

05 02 12 04 

Measures under preparation (EUR 500,7 million), of which 
05 02 12 02 

05 02 12 09 

05 02 12 99 

05 02 12 99 

05 02 15  

Extended  private  storage  for  skimmed  milk  powder  (Commission  Implementing 
Regulation (EU) 2015/xx currently under preparation) 
Distribution of dairy products as urgent response to humanitarian crises (Directly 
implementable by the Commission under Regulation (EC) No 1257/96) 
Temporary  exceptional  private  storage  aid  scheme  for  certain  cheeses 
(Commission Delegated Regulation (EU) 2015/xx currently under preparation) 
Temporary  exceptional  aid  to  milk  producers  in  the  form  of  national  envelopes 
(Commission Delegated Regulation (EU) 2015/xx currently under preparation) 
Private  storage  for  pigmeat  (open  when  market  price  development  justifies 
measure) 

Total of all additional emergency measures included in AL 2/2016 compared to DB 2016 

191,0 

2,3 

4,0 

11,7 

30,0 

10,0 

420,0 

29,0 

698,0 

Some  of  these  measures  may  also  have  an  impact  on  expenditure  in  2017,  depending  on  their  final 
modalities and the timing of the declaration to be presented to the Commission by the Member States 
under EAGF shared management. Furthermore, the table above does not include  EUR 30 million that 
will  be  added  in  the  next  call  for  proposals  to  be  launched  in  early  2016  for  further  reinforcing 
promotion activities for dairy products and pigmeat in third countries as the financial impact will be 
reflected as from 2017. 

These  additional  temporary  measures  of  EUR 698,0 million  will  mainly  fall  under  the  EAGF 
(EUR 668,0 million), except for the distribution of dairy products as urgent response to humanitarian 
crises (EUR 30 million). 

Appropriations  for  agricultural  expenditure  financed  under  the  EAGF  in  AL 2/2016  are  budgeted  at 
EUR 42 360,3 million, which is below its 2016 net balance available for EAGF expenditure ('net sub-
ceiling')  of  EUR 43 949,3 million4.  Despite  an  increase  of  the  EAGF  needs  by  EUR 630,7 million, 
EAGF appropriations compared to DB 2016 are reduced as this increase is more than compensated for 
by the additional revenue assigned to the EAGF (+ EUR 1 138,0 million). 

4  

Under the 2014-2020 MFF, the initial EAGF sub-ceiling for 2016 amounted to EUR 44 628 million. After taking 
into account a net amount of EUR 678,7 million to be transferred to Rural Development, which had already been 
incorporated  in  the  DB  2016,  the  net  balance  available  for  EAGF  expenditure  (‘net  sub-ceiling’)  amounts  to 
EUR 43 949,3 million. The EAGF needs for 2016 are assessed against this EAGF ‘net sub-ceiling’. 

5 

 
 
  
 
                                                 
353,3

0,8

13,1

50,3

30,0

55 377,6

42 352,0

462,8 

0,3 

p.m. 

50,3 

30,0 

62 616,1 

64 262,0 

1 645,9 

42 360,3 

43 950,0 

43 949,3 

1 588,9 

The following table summarises the effect of AL 2/2016 on heading 2 as a whole: 

Draft Budget 2016 (1) 

 (in million EUR, rounded figures at current prices) 

Amending Letter 
 No 2/2016 

Draft Budget 2016  
(incl. AL2/2016) 

Commitments

Payments  Commitments

Payments  Commitments 

Payments 

—  European Agricultural Guarantee Fund 

42 867,6

42 859,3

-507,3

-507,3 

42 360,3 

42 352,0

(EAGF)  

—  European Agricultural Fund for Rural 

18 676,3

11 866,4

18 676,3 

11 866,4

Development (EAFRD) 

—  European Maritime and Fisheries Fund 

1 047,0

720,6

-11,0

-11,0 

1 036,0 

709,6

(EMFF), Regional Fisheries Management 
Organisations (RFMOs) and Sustainable 
Fisheries Partnership Agreements (SFPAs), of 
which: 

  —  Sustainable Fisheries Partnership 

51,1

51,1

-0,4

-0,4 

50,7 

50,7

93,9

93,9

-10,6

-10,6 

83,3 

83,3

Agreements (SFPAs) ⎯ Operational line 
(11 03 01) 

  —  Sustainable Fisheries Partnership 
Agreements (SFPAs) ⎯ Reserve 
(40 02 41) 

—  Environment and climate action (Life) 

—  Actions financed under the prerogatives of the 

Commission and specific competences 
conferred to the Commission 

—  Pilot projects and preparatory actions 

—  Decentralised agencies 

—  Other expenditure under Heading 2 

462,8

0,3

p.m.

50,3

0,0

355,3

0,8

13,1

50,3

0,0

Total 

Ceiling 

Margin 

63 104,4

55 865,9

64 262,0  

1 157,6  

Of which EAGF 

42 867,6

42 859,3

30,0

-488,3

+488,3  

-507,3

30,0 

-488,3 

-507,3 

EAGF Sub-Ceiling (after technical adjustment of 
the MFF 2014-2020) (2) 

43 950,0  

Net balance available for EAGF expenditure (3) 

43 949,3  

EAGF margin 

1 081,7  

+507,3

(1) Draft Budget 2016 includes AL No 1/2016. 
(2) The related amounts are rounded up in EUR million. 
(3) Net balance available for EAGF expenditure as fixed in the Annex of Commission Implementing Regulation (EU) No 367/2014 as last modified by 
Commission Implementing Regulation (EU) No 2015/141. The sub-margin for the EAGF is calculated against these amounts. 

Thus, overall appropriations requested for heading 2 in 2016 are estimated at EUR 62 616,1 million. 
This leaves a margin of EUR 1 645,9 million in commitment appropriations below the corresponding 
MFF ceiling. The modifications proposed in this amending letter compared to the DB 2016 increase 
the  margin  by  EUR 488,3 million,  of  which  EUR 477,3 million  from  Title  05  (Agriculture)  and 
EUR 11 million  from  Sustainable  Fisheries  Partnership  Agreements  (SFPAs)  in  Title  11  (Maritime 
affairs  and  fisheries).  Payment  appropriations  in  AL 2/2016  are  revised  by  the  same  amount  as  the 
commitment appropriations. 

2.2 

European Agricultural Guarantee Fund (EAGF) 

2.2.1  Overview 

The purpose of AL 2/2016 is to update estimates for agricultural expenditure based on the most up-to-
date economic data and legislative framework. By late September, the Commission has at its disposal 
a  first  indication  of  the  level  of  production  for  2015  and  perspectives  for  the  agricultural  markets, 
which are the basis for the updated estimates of the budgetary needs for 2016. Apart from taking into 
account  market  factors,  this  AL 2/2016  also  incorporates  the  impact  of  legislative  decisions,  either 
already adopted or currently under preparation, in the agricultural sector since the DB 2016 was drawn 
up in late May 2015. This relates in particular to a series of Commission Delegated and Implementing 
Acts on temporary support measures following the extension of the  Russian embargo on imports of 
certain agricultural products from the EU, for fruit and vegetables and dairy products, and for dealing 
with market difficulties in certain sectors, mainly dairy and pigmeat. 

6 

 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Overall,  2016  EAGF  needs  (after  taking  into  account  EAGF  provisions  related  to  'financial 
discipline')  are  now  estimated  at  EUR 45 200,3 million,  compared  to  EUR 44 569,6 million  in  DB 
2016 (+ EUR 630,7 million). This increase is mostly due to the temporary support measures budgeted 
in  chapter  05 02  Improving  the  competitiveness  of  the  agricultural  sector  through  interventions  in 
agricultural markets, for a total amount of EUR 668,0 million. There are, however, small reductions 
for  mainstream  market  measures  (-  EUR 10,0 million),  such  as  for  chapter  05 03  Direct  payments 
aimed  at  contributing  to  farm  incomes,  limiting  farm  incomes  variability  and  meeting  environment 
and climate objectives (- EUR 12,6 million), and for chapter 05 07 Audit of agricultural expenditure 
financed by the European Agricultural  Guarantee Fund (EAGF) (- EUR 15 million), which are also 
incorporated into AL 2/2016. 

The amount of assigned revenue, expected to be available in 2016 increases from EUR 1 702 million 
in DB 2016 to EUR 2 840 million (+ EUR 1 138 million). This increase results from higher revenue 
from  the  milk  superlevy  (+  EUR 369 million),  based  on  Member  States’  notifications  for  the 
overshooting of reference quantities of the last milk quota year 2014/15, and from updated estimates 
for  amounts  from  clearance  of  accounts  decisions  (+  EUR 25 million)  and  irregularities  (- 
EUR 6 million).  Furthermore,  the  AL 2/2016  incorporates  an  expected  carry-over  of  assigned 
revenues from 2015 to 2016 (+ EUR 750 million). This was not included in the DB 2016, since at that 
time it was too early in the year to make a solid assumption for the execution of the EAGF in 2015. 
Moreover, as the agricultural crisis reserve (EUR 433 million) will not be called on in 2015, the non-
used  appropriations  will  be  carried  over  for  reimbursement  to  farmers  subject  to  the  financial 
discipline in 2016 

As a result of these updates, commitment appropriations of EUR 42 360,3 million, which includes an 
amount  of  EUR 441,6 million  for  the  Reserve  for  crises  in  the  agricultural  sector,  are  required  to 
cover EAGF needs for 2016. As was the case for the DB 2016, this overall amount remains below the 
EAGF net sub-ceiling of EUR 43 949,3 million. This  means that  the financial discipline mechanism 
will only be applied to establish the agricultural crisis reserve 20165. 

2.2.2  Detailed comments 

05 02 ⎯ Improving  competitiveness  of  the  agricultural  sector  through  interventions  in 
agricultural markets (appropriations + EUR 458,3 million) 

Interventions in agricultural markets 

Draft Budget 2016 

(in million EUR, rounded figures at current prices)

Amending Letter 
 No 2/2016 

Draft Budget 2016  
(incl. AL 2/2016) 

Needs 

-Estimated assigned revenue available in 2016 

Appropriations requested 

2 614,7

400,0

2 214,7

+658,3 

+200,0 

+ 458,3 

3 273,0

600,0

2 673,0

Overall,  the  needs  for  intervention  measures  on  agricultural  markets  increase  by  EUR 658,3 million 
compared  to  the  DB  2016.  As  the  assigned  revenues  expected  to  be  available  for  chapter  05 02 
(amounting  to  EUR 600,0 million)  are  EUR 200 million  higher  compared  to  the  DB  2016,  the 
appropriations requested in AL 2/2016 increase by EUR 458,3 million).  

The main modifications are set out below. 

For  fruit  and  vegetables,  the  estimated  needs  for  operational  funds  for  producer  organisations 
(budget  item  05 02 08 03)  are  higher  (+ EUR 111,0 million)  than  assumed  for  the  DB  2016.  Only  a 
small  revision  (-  EUR 2,7 million)  results  from  an  updated  assessment  of  the  actual  uptake  of  the 
measures  and  slightly  revised  figures  for  their  annual  national  plans  as  well  as  of  the  estimated 
financial  impact  of  the  possible  partial  reimbursement  by  the  EU  budget  of  national  financial 

5  

The rate of financial discipline is established in Regulation (EU) 2015/1146 of the European Parliament and of 
the Council of 8 July 2015 fixing the adjustment rate provided for in Regulation (EU) No 1306/2013 for direct 
payments in respect of the calendar year 2015. Based on the AL 2/2016 it is not expected to modify this rate as 
the impact of the new amounts allocated to the different direct aid schemes is negligible. 

7 

 
 
  
 
                                                 
assistance  granted  by  certain  Member  States6.  The  largest  variation  (+  EUR 113,7 million) 
corresponds to the financial impact of the extension of the temporary crisis measures (withdrawal for 
free  distribution  and  other  destinations,  non-harvesting  and  green  harvesting  measures  as  well  as 
reinforced promotion for fruits and vegetables), carried out by producer organisations on top of their 
normal  annual  plans7.  A  further  EUR 77,3 million  is  estimated  to  be  required  for  the  same  crisis 
measures  carried  out  by  producers that  are  not  members  of  such  recognised  producer  organisations, 
which  will  be  financed  from  budget  item  05 02 08 99  (other  measures  for  fruit  and  vegetables).  In 
total, the financial impact of this extension is estimated at EUR 191 million. Furthermore, AL 2/2016 
proposes  a  small  downward  revision  (-  EUR 10 million)  for  aid  to  producer  groups  for  preliminary 
recognition (budget item 05 02 08 11) based on the latest information of provisional implementation 
in 2015. 

Appropriations  for  the  wine  sector  on  budget  item  05 02 09 08  financing  the  national  support 
programmes  are  proposed  to  be  reduced  by  EUR 8 million,  while  appropriations  for  promotion 
measures  in  favour  of  agricultural  products  on  budget  item  05 02 10 01  are  increased  by 
EUR 6 million,  reflecting  the  most  recent  execution  figures  for  both  measures.  For  promotion 
measures,  the  DB  2016  already  included  an  amount  of  EUR 13,5 million,  based  on  the  estimated 
financial  impact  for  2016  of  a  specific  call  for  proposals  that  the  Commission  launched  already  in 
2015  to  encourage  the  reorientation  of  exports  after  the  closure  of  the  Russian  market.  Further 
reinforcing of promotion activities in other third countries is foreseen, especially as a follow-up of the 
current situation in the dairy and pigmeat market, but the financial impact of an additional amount of 
EUR 30 million in the next call for proposals to be launched in early 2016 will be for budget 2017 at 
the earliest (reimbursement of expenditure actually incurred by Member States after implementation 
of the individual projects). 

For  other  plant  products/measures  (budget  article 05 02 11),  the  AL  2/2016  updates  the  estimates 
for  the  use  of  the  ceilings  for  the  POSEI  regions8,  resulting  in  a  minor  increase  of  appropriations 
(+ EUR 1,0 million) for market support measures financed from budget item 05 02 11 04. 

The  largest  modification  proposed  in  AL  2/2016  for  agricultural  measures  concerns  milk  and  milk 
products (budget article 05 02 12) with an increase of EUR 478 million, of which EUR 30 million are 
foreseen  for  distribution  of  EU  dairy  products  under  the  EU  humanitarian  aid  assistance  to  third 
countries  (see  section  2.3  below).  The  whole  additional  needs  are  for  additional  extra-ordinary 
measures  supporting  the  sector,  which  is  together  with  the  fruit/vegetables  and  pigmeat  sector,  the 
most  concerned  by  the  Russian  embargo  on  EU  imports.  Furthermore,  a  strong  increase  of  the 
production in the EU in the first months after the end of the milk quota system (at the end of March 
2015)  and  weaker  demand  on  world  markets  is  currently  putting  pressure  on  producer  prices  in  the 
EU. Part of the additional appropriations (+ EUR 28 million) are for continuing and reinforced storage 
operations,  of  which  +  EUR 14 million  for  skimmed  milk  powder  on  budget  item  05 02 12 02,  + 
EUR 4 million  for  butter  on  item  05 02 12 04  and  +  EUR 10 million  for  cheese  on  budget  item 
05 02 12 99.  The  largest  amount  (+  EUR 420 million),  is  proposed  for  providing  temporary 
exceptional  aid  in  the  form  of  one-time  financial  envelopes,  for  which  Member  States  will  have 
substantial flexibility to target the support to those farmers particularly affected.9 

6  

7  

8  

9  

Article 35  of  Regulation  (EU)  No 1308/2013  of  the  European  Parliament  and  of  the  Council  of  17  December 
2013  establishing  a  common  organisation  of  the  markets  in  agricultural  products  and  repealing  Council 
Regulations  (EEC)  No  922/72,  (EEC)  No  234/79,  (EC)  No  1037/2001  and  (EC)  No  1234/2007  (OJ L 347, 
20.12.2013, p. 674).  
This extension was adopted by the Commission in August 2015 through Commission Delegated Regulation (EU) 
1369/2015  of  7.8.2015  amending  Delegated  Regulation  (EU)  No  1031/2014  laying  down  further  temporary 
exceptional support measures for producers of certain fruit and vegetables (OJ L 211, 8.8.2015). 
Regulation  (EU)  No  228/2013  of  the  European  Parliament  and  of  the  Council  of  13  March  2013  laying  down 
specific measures for agriculture in the outermost regions of the Union and repealing Council Regulation (EC) No 
247/2006 (OJ L 78, 20.3.2013, p. 23). 
The  corresponding  legal  acts  for  these  additional  measures  will  be  adopted  as  soon  as  possible  by  the 
Commission in the form of Implementing or Delegated Regulations. 

8 

 
 
  
 
                                                 
The Commission proposes  to increase by  EUR 33 million appropriations for budget article 05 02 15 
(pigmeat,  eggs  and  poultry,  bee-keeping  and  other  animal  products).  A  small  amount  of 
EUR 1 million  is  for  bee-keeping  (budget  item  05 02 15 06)  reflecting  further  improvement  in  the 
implementation  of  national  programmes.  Another  additional  EUR 3 million  are  needed  for  budget 
item  05 02 15 02  to  cover  residual  payments  for  the  private  storage  scheme  for  pigmeat  that  was 
opened for several weeks in spring 201510. The AL 2/2016 is also proposing another EUR 29 million 
for  private  storage  of  pigmeat  in  case  market  price  developments  required  the  opening  of  a  new 
scheme. 

05 03 ⎯ Direct  payments  aimed  at  contributing  to  farm  incomes,  limiting  farm  income 
variability and meeting environment and climate objectives (appropriations - EUR 950,6 million) 

Direct payments 

Draft Budget 2016 

(in million EUR, rounded figures at current prices)

Amending Letter 
 No 2/2016 

Draft Budget 2016  
(incl. AL 2/2016) 

After financial discipline (including credits for the ‘Reserve for crises in the agricultural sector’) 

Needs 

- Estimated assigned revenue available in 2016 

Appropriations requested 

41 838,3

1 302,0

40 536,3

-12,6

+938,0

-950,6

41 825,7

2 240,0

39 585,7

Compared  to  the  DB  2016,  appropriations  requested  for  chapter  05 03  are  revised  downwards  by 
EUR 950,6 million.  This  change  is  mostly  due  to  the  higher  amount  of  revenue  assigned  to  item 
05 03 01 10 Basic Payment Scheme (BPS), for which the estimated needs are unchanged compared to 
DB 2016. The small decrease of needs (- EUR 12,6 million) is the net effect of some minor changes 
for  several  other  budget  items  reflecting  updated  budgetary  estimates:  - EUR 18,0 million  for  item 
05 03 01 01  Single  Payment  Scheme,  +  EUR 1,0 million  for  item  05 03 01 02  Single  Area  Payment 
Scheme, + EUR 6,0 million for 05 03 02 40 Crop-specific payment for cotton, - EUR 1,0 million for 
item 05 03 02 60 Voluntary coupled support and – EUR 0,6 million for item 05 03 02 99 Other direct 
payments. 

05 07 Audit of agricultural expenditure financed by the European Agricultural Guarantee Fund 
(EAGF) (appropriations – EUR 15,0 million) 

Audit of agricultural expenditure 

Draft Budget 2016 

(in million EUR, rounded figures at current prices)

Amending Letter 
 No 2/2016 

Draft Budget 2016  
(incl. AL 2/2016) 

financial 
for 
05 07 01 06 ⎯ Expenditure 
corrections 
favour  of  Member  States 
in 
following decisions on accounting clearance of 
previous years’ accounts with regard to shared 
management  declared  under 
the  EAGGF-
Guarantee  Section  (previous  measures)  and 
under the EAGF 

Total 

35,0

35,0

-15,0

-15,0

20,0

20,0

Appropriations  for  budget  article  05 07 01 06  Financial  corrections  in  favour  of  Member  States 
following  accounting  clearance  decisions  can  be  reduced  by  EUR 15,0 million  reflecting  updated 
budgetary estimates taking into account provisional execution in 2015. 

2.3 

Other agricultural expenditure outside the EAGF 

As  part  of  the  emergency  measures  aiming  to  restore  market  balance  in  the  EU  dairy  sector,  an 
amount of EUR 30 million will be devoted to the distribution of dairy products of EU origin under the 
EU humanitarian aid assistance to third countries. The measure, which is considered exceptional and 
one-off,  will  be  implemented  together  with  international  organisations  active  in  the  field  of 
humanitarian aid. The amount will be financed from a proposed new budget item 05 02 12 09 Dairy 
products distribution as urgent response to humanitarian crises,  in  Title  05,  but  outside  the  EAGF. 

10  

Commission Implementing Regulation (EU) 2015/360 of 5 March 2015 opening private storage for pigmeat and 
fixing in advance the amount of aid (OJ L 62, 6.3.2015, p. 16). 

9 

 
 
  
 
                                                 
The  Commission  will  implement  it  under  Council  Regulation  (EC)  No  1257/96  of  20  June  1996 
concerning humanitarian aid11. 

Sustainable Fisheries Partnership Agreements 

2.4 
As  foreseen  in  point  C  of  Part  II  of  the  Interinstitutional  Agreement  (IIA)12,  the  Commission  has 
examined  the  most  recent  information  available  concerning  Sustainable  Fisheries  Partnership 
Agreements. To reflect the latest known situation with regards to the financial counterpart to be paid 
for  the  agreements  in  force  and  those  under  negotiation,  and  taking  into  account  the  estimated 
assigned revenue, the Commission proposes to reduce commitment and payment appropriations from 
budget  article  11 03 01  Establishing  a  governance  framework  for  fishing  activities  carried  out  by 
Union fishing vessels in third country waters by EUR 0,4 million and from the reserve article 40 02 41 
by EUR 10,6 million. 

As the financial counterparts for most of the agreements show a stable profile throughout the period, 
reprogramme  EUR 11,0 million  commitment  and  payment 
the  Commission 
appropriations over the 2018-2020 period. This will result in a stable profile compared to the declining 
one foreseen in the MFF 2014-2020. 

intendeds 

to 

Sustainable fisheries partnership 
agreements 

Operational line (11 03 01) 

Reserve (40 02 41) 

Draft Budget 2016 

(in million EUR, rounded figures at current prices)

Amending Letter 
 No 2/2016 

Draft Budget 2016  
(incl. AL2/2016) 

Commitments

Payments  Commitments

Payments  Commitments  Payments 

51,1

93,9

145,0

51,1

93,9

145,0

-0,4

-10,6

-11,0

-0,4 

-10,6 

-11,0 

50,7 

83,3 

134,0 

50,7

83,3

134,0

Total 

2.5 

Nomenclature changes and budgetary remarks 

The  following  table  summarises  the  nomenclature  changes  and  modifications  of  the  budgetary 
remarks for several chapters, articles and items under heading 2: 

Expenditure 

05 02 

Interventions in agricultural markets  

Update of figures for assigned revenues 

Heading 

Explanation 

05 02 12 09 

05 03 

11 03 01 

Revenue 

6 7 0 1 

6 7 0 2 

6 7 0 3 

Dairy  products  distribution  as  urgent  response  to  humanitarian 
crises 

Creation  of  a  new  item  for financing  part  of  the 
emergency measures related to the dairy sector 

Direct  payments  aimed  at  contributing  to  farm  incomes,  limiting 
farm  income  variability  and  meeting  environment  and  climate 
objectives 

Update of figures for assigned revenues 

Sustainable Fisheries Partnership Agreements 

Change in budgetary remarks: table 

Clearance of EAGF accounts – Assigned revenue 

Update of figures for assigned revenues 

EAGF irregularities – Assigned revenue 

Update of figures for assigned revenues 

Superlevy from milk producers – Assigned revenue 

Update of figures for assigned revenues 

3 

IMMEDIATE MEASURES TO MANAGE THE REFUGEE CRISIS UNDER THE EUROPEAN AGENDA 
ON MIGRATION 

3.1 

Introduction 

On 23 September 2015, the Commission presented a Communication to the European Parliament, the 
European Council and the Council – Managing the refugee crisis: immediate operational, budgetary 
and legal measures under the European Agenda on Migration13. This Communication identified a set 
of priority actions to be taken within the next six months, including the adaptations to be made to the 
budget for 2015 and the draft budget 2016. 

11  
12  
13  

OJ L 163, 2.7.1996, p. 1. 
OJ C 373, 20.12.2013, p. 1. 
COM(2015) 490, 23.9.2015. 

10 

 
 
  
 
 
                                                 
On 30 September 2015, the Commission adopted draft amending budget 7/201514, which included the 
following amendments to the 2015 budget:  

•  Under  heading  3:  Citizenship  and  Security:  Additional  emergency  assistance  under  the 
Asylum, Migration and Integration Fund (AMIF) and the Internal Security Fund (ISF), for a 
total amount of EUR 100 million in commitment appropriations; and an increase in the number 
of establishment plan posts for FRONTEX (+ 60 posts), EASO (+ 30) and EUROPOL (+ 30) 
to increase their capacity on the ground.  

•  Under  heading  4  Global  Europe:  Additional  funding  for  the  European  Neighbourhood 
Instrument  (EUR 300 million  in  commitment  appropriations),  and  an  increase  in  payment 
appropriations for Humanitarian Aid of EUR 55,7 million through redeployment.  

Furthermore,  in  parallel  the  Commission  requested  (DEC  32/2015)  for  the  transfer  of  EUR 175 
million  in  commitment  appropriations  from  the  Emergency  Aid  Reserve  (EAR)  to  provide 
humanitarian aid to countries hosting displaced persons fleeing from the Syrian conflict. 

The  present  amending  letter  to  the  2016  draft  budget  builds  on  and  expands  the  measures  already 
proposed  in  the  draft  amending  budget  7/2015  as  regards  emergency  assistance  and  the  agencies. 
Moreover, it integrates the budgetary support for 2016 related to the decisions taken with regard to the 
relocation  of  160 000  persons  from  Italy  and  Greece.  The  initial  draft  budget  already  included  the 
appropriations  corresponding  to  40 000  of  these  160 000  persons.  A  top-up  of  the  AMIF  and  ISF 
funding is proposed, so as to strengthen the reception and asylum systems of Member States facing 
unprecedented influxes of migrants and steep increases in asylum applications. 

Under  heading  4,  the  Commission  proposes  increased  support  for  Humanitarian  Aid  and  for  the 
European Neighbourhood Instrument (ENI). Finally, to reinforce the frontline Commission services in 
response to the refugee crisis, the Commission requests an increase in  administrative  appropriations 
under heading for salaries and for missions. 

3.2 

Heading 3: Security and Citizenship 

The additional measures proposed through this amending letter for 2016 are as follows: 

1. 

2. 

Emergency assistance: building on the request for additional emergency assistance for 2015 
as  contained  in  DAB  7/2015  (EUR 100 million),  a  further  reinforcement  under  AMIF 
(EUR 60 million)  and  ISF  (EUR 34 million)  is  proposed  for  2016.  The  additional  amount 
would serve primarily to meet requests already received and expected to be received during the 
year.  It  would  also  allow  the  Commission  to  develop  a  coordinated  approach  with  Italy  and 
Greece in terms of structured emergency requests to address the implementation of the migrant 
support teams and the relocation schemes, as well as to face the increasing influx of migrants. 

The  additional  emergency  assistance  for  2015  and  2016  (respectively  EUR 100  million  and 
EUR 94  million  in  commitment  appropriations)  requires  a  pre-financing  of  80 %  or 
EUR 155,2 million in payment appropriations in 2016. 

Agencies: the EU agencies operating on migration-related areas need to step up their capacity, 
since they are now being asked to be far more active on the ground than originally envisaged. 
The Commission therefore proposes to maintain the increased staffing levels of the three key 
EU  agencies  (FRONTEX,  EASO  and  EUROPOL)  proposed  in  DAB  7/2015,  as  well  as  to 
strengthen the operational capacity of FRONTEX in the field of return and cooperation in the 
hotspots areas. 

14  

COM(2015) 485, 30.9.2015. 

11 

 
 
  
 
 
                                                 
a.  Human resources: DAB 7/2015 proposed to increase the human resources of the three key 
EU agencies by 120 additional establishment plan posts, of which 60 for FRONTEX, 30 
for EASO and 30 for EUROPOL. The additional 120 posts are proposed to be maintained 
in 2016, to be financed on a full-year basis (12 months). This requires EUR 15,6 million in 
both commitment and payment appropriations. 

b.  Operations: the operational capacity of FRONTEX in the field of return and cooperation 
in the hotspots areas is proposed to be reinforced by EUR 70 million in both commitment 
and payment appropriations: 

i.  Return: EUR 50 million to support the return of an additional 20 000 persons, who do 
not  fall  under  international  protection,  with  accompanying  measures  such  as  training 
and  capacity  building,  focusing  on  bottlenecks,  needs  and  other  factors  relevant  to 
successful return in a swifter way. 

ii.  Hotspots:  EUR 20 million  to  enhance  the  effectiveness  of  the  implementation  of  the 
hotspots  concept,  in  particular  for  operational  activities  such  as:  a)  deployment  of 
mobile  offices  in  the  hotspot  areas  and  the  places  of  arrival;  b)  providing  good 
connectivity for transmission of digital (fingerprints) data; and c) costs for logistics and 
equipment for the Regional Task Force to strengthen the capacity for identification, so 
as to speed up the process of registering newly arrived migrants. 

3. 

Relocation:  on  14  and  21  September  2015,  the  Council  took  two  relocation  decisions, 
covering  40 000  and  120 000  persons  respectively.  To  facilitate  the  integration  of  the  new 
schemes  into  the  national  programmes,  the  Commission  proposes  to  align  the  commitment 
appropriations for the first relocation decision to the second, as set out below: 

a.  Second  relocation  package  (120 000  persons):  the  decision  to  relocate  120 000  persons 
from Italy and Greece requires a total amount of EUR 780 million, to be budgeted in this 
amending letter to cover relocation and transfer costs as follows: 

i.  Relocation:  receiving  Member  States  are  entitled  to  a  lump  sum  of  EUR 6 000  per 
person to be relocated. Consequently, the financial impact amounts to EUR 720 million 
(120 000 x EUR 6 000). 

ii.  Transfer: Italy and Greece will receive a lump sum of EUR 500 per person to cover the 
transfer  costs.  This  requires  an  amount  of  EUR 60 million  (120 000 x EUR 500).  

A  specific  pre-financing  rate  of  50 %  will  provide  receiving  Member  States  with  the 
cash-flow  required  to  immediately  start  the  relocation  actions.  Consequently,  an 
amount of EUR 390 million in payment appropriations is required in 2016. 

b.  First  relocation  package  (40 000  persons):  The  alignment  of  the  first  relocation  package 
with  the  second  increases  the  2016  commitment  appropriations  by  EUR 110 million  and 
the payment appropriations by EUR 9,9 million: 

i.  Original proposal (May): the Commission proposal of 27 May  2015 included a lump 
sum  of  EUR 6 000  per  person  to  be  relocated.  However,  lump  sums  to  cover  the 
transfer costs of Italy and Greece were initially not planned. The financial impact of the 
May proposal amounted to EUR 240 million (120 000 x EUR 6 000). At that time, the 
related  commitment  appropriations  were  planned  to  be  made  over  a  period  of  24 
in  2016  and 
months,  of  which  EUR 12 million 
EUR 78 million in 2017. 

in  2015,  EUR 150 million 

12 

 
 
  
 
 
ii.  Alignment:  to  align  the  two  relocation  schemes  an  additional  EUR  110  million  in 
commitment  appropriations  are  needed  in  2016:  the  EUR 90 million  which  were 
originally not included in 2016 and EUR 20 million, to grant Italy and Greece a lump 
sum  of  EUR 500 per  person  to  cover  transfer  costs  (40 000  x  EUR 500).  The  total 
budgetary  impact  in  commitments  would  be  to  EUR 260 million  in  2016,  of  which 
EUR 150 million was already proposed in the draft budget.  

Payment  appropriations  for  the  first  relocation  package  are  based  on  the  regular  pre-
financing  rates  set  out  in  the  so-called  "horizontal"  Regulation  (EU)  No 514/2014 
laying  down  general  provisions  on  the  AMIF  and  the  ISF15,  i.e.  a  5 %  annual  pre-
financing  rate  plus  a  4 %  initial  pre-financing.  The  topping-up  of  commitment 
appropriations  (+  EUR 110 million  in  2016)  therefore  requires  additional  payment 
appropriations of EUR 9,9 million 

4. 

Top-ups  of  AMIF  and  ISF  in  addition  to  emergency  assistance:  finally,  it  is  proposed  to 
top-up the funding of AMIF-Asylum (+ EUR 190 million), AMIF-Return (+ EUR 38 million) 
and  ISF-Borders  (+  EUR 82,4 million).  These  reinforcements  will  allow  strengthening  the 
reception  and  asylum  systems  of  Member  States  facing  unprecedented  influxes  of  migrants 
and steep increases in asylum applications, and will address urgent and specific needs resulting 
from exceptional migration pressure requiring immediate action on the external borders. 

a.  AMIF:  the  additional  funding  under  AMIF  will  also  be  used  by  the  Member  States  for 
more structural medium-term actions in the area of reception, accommodation and asylum 
systems, as well as to increase their capacities for return.  

b. 

ISF: the additional funding under ISF will also contribute to reinforcing the first reception 
activities, such as identification, first medical aid, purchase of equipment in the context of 
border checks and transportation of migrants in the context of the screening process.  

The  additional  commitment  appropriations  of  EUR 310,4  million  will  increase  the  payment 
appropriations  required  for  2016  by  EUR 138,1 million.  This  allows  for  the  necessary 
flexibility in the delivery of the additional funding so that emergency situations that may occur 
in 2016 can be properly addressed. 

The  proposed  measures  for  2016  as  set  out  above  require  a  reinforcement  of  EUR 1 380 million  in 
commitment  appropriations  and  EUR 778,8 million  in  payment  appropriations.  The  corresponding 
breakdown by budget line is set out in the table below: 

Budget line 

18 02 01 01 

18 02 03 

18 02 04 
18 03 01 01 

18 03 01 02 

18 03 02 
Total 

Name 

Support  of  border  management  and  a  common  visa  policy  to 
facilitate legitimate travel 
European Agency for the Management of Operational Cooperation 
at the External Borders (FRONTEX) 
European Police Office (EUROPOL) 
Strengthening  and  developing  the  Common  European  Asylum 
System and enhancing solidarity and responsibility sharing between 
the Member States 
Supporting  legal  migration  to  the  Union  and  promoting  the 
effective  integration  of  third-country  nationals  and  enhancing  fair 
and effective return strategies 
European Asylum Support Office (EASO) 

Commitment 
appropriations 

Payment 
appropriations 

116 400 000 

79 868 000 

77 800 000 

77 800 000 

3 900 000 
1 140 000 000 

3 900 000 
596 450 000 

38 000 000 

16 910 000 

3 900 000 
1 380 000 000 

3 900 000 
778 828 000 

15  

OJ L 150, 20.5.2014, p, 112. 

13 

 
 
  
 
 
 
                                                 
Given the severe strain under which the Migration and Home affairs  policy  area  has  had to operate 
over the past months and the expected high needs in the near future, no possibilities for redeployment 
exist  under  this  heading.  Consequently,  the  Commission  proposes  to  mobilise  the  Flexibility 
Instrument for an amount of EUR 1 504,0 million in heading 3 (Security and Citizenship), to finance 
the  immediate  measures  to  manage  the  refugee  crisis  under  the  European  Agenda  on  Migration  for 
2016. The mobilisation of the Flexibility Instrument is proposed in a separate act, which repeals the 
proposed  mobilisation  of  the  Flexibility  Instrument  for  the  same  purpose  which  accompanied  the 
initial draft budget 201616. 

3.3 

Heading 4: Global Europe 

With no immediate solution to the conflict in sight, the Syria crisis will continue generating in 2016 
massive needs not only in the country itself but also in the whole region. With an average of 38 % of 
needs met to date, the United Nations appeals remain largely underfunded. Due to this shortfall, the 
UN World Food Programme, other UN agencies, and other international humanitarian organisations 
have been scaling down the delivery of aid in the recent months. 

In order to reduce the growing gap between needs and available funding, the Commission is proposing 
to  step  up  further  the  response  to  this  crisis  by  reinforcing  Humanitarian  Aid  with  an  additional 
amount  of  EUR 150 million  in  commitment  appropriations  in  the  2016  budget  compared  to  the 
original draft budget.  

The requested reinforcement will be complemented by a separate proposal to mobilise the Emergency 
Aid Reserve, to be submitted in early 2016, so that commitment appropriations for humanitarian are 
EUR 300 million higher than in the original draft budget.  

An  amount  of  EUR 405 million  in  payment  appropriations  is  also  requested,  consisting  of: 
EUR 105 million  corresponding 
the  
EUR 175 million  in  commitment  appropriations  transfer  request  from  the  Emergency  Aid  Reserve 
requested  for  the  end  of  2015  (DEC  32/2015),  and  EUR 300 million  corresponding  to  the  2016 
reinforcement  in  commitment  appropriations  (including  the  announced  EUR 150 million  transfer 
request in early 2016). 

the  outstanding  balance 

in  2016  for 

to  be  paid 

to 

The funds will be used to meet the most urgent basic needs in terms of food, health, water, sanitation, 
hygiene,  protection  and  other  basic  services  for  Syrian  and  Iraqi  refugees  in  the  neighbouring 
countries  (Jordan,  Lebanon  and  Turkey)  and  the  Western  Balkans  (Serbia  and  the  former  Yugoslav 
Republic of Macedonia), as well as for people inside Syria and Iraq. 

In addition, EUR 210 million in payment appropriations is requested for the European Neighbourhood 
Instrument,  corresponding  to  70 %  of  the  reinforcement  in  commitment  appropriations  requested  in 
DAB 7/2015. Since the commitments will to a large extent be made for large-scale grant projects with 
partner organisations, via the EU Trust Fund for Syria, payments follow relatively quickly upon the 
commitment to be made in late 2015. 

The  table  below  shows  the  distribution  of  the  reinforcements  in  commitment  and  payment 
appropriations under heading 4 requested in this amending letter: 

Budget line 

23 02 01 

22 04 01 03 

Total 

Name 

Delivery  of  rapid,  effective  and  needs-based  humanitarian  aid  and 
food aid 

Mediterranean  countries  ⎯  Confidence  building,  security  and  the 
prevention and settlement of conflicts 

Commitment 
appropriations 

150 000 000 

Payment 
appropriations 
405 000 000 

210 000 000 

150 000 000 

615 000 000 

16  

COM(2015) 238, 27.5.2015. 

14 

 
 
  
 
 
 
 
 
                                                 
3.4 

Heading 5: Administration 

The  Commission  is  undergoing  a  major  redeployment  effort  to  support  the  activities  of  frontline 
services in particular in response to the current migration crisis. To achieve this, the Commission is 
trying to make the best use of all the posts authorised in its establishment plan, which the Commission 
has  reduced  by  1 %  every  year  since  2013  to  achieve  the  5 %  staff  reduction  target  set  in  the 
Interinstitutional Agreement. To address the new needs the Commission is striving to fill vacancies as 
quickly as possible. The appropriations proposed in the draft budget 2016 have been calculated on the 
basis of an average occupancy rate of 96,6 %. However, such a rate has already been reached and the 
Commission is currently constrained by the available appropriations. To allow the redeployment to be 
effective and strengthen the response capacity, the Commission requests a EUR 23,1 million increase 
in its administrative appropriations for salaries, which corresponds to an occupancy rate of 97,6 %, i.e. 
one percentage point higher (equivalent to 200 posts) than in the estimate retained in the draft budget 
2016. Such a request does not increases the number of posts authorised for the Commission, nor does 
it affect the Commission's commitment to implement in full the 5 % reduction in staff over the agreed 
timeframe. It simply allows the occupation of authorised posts, which are currently vacant and cannot 
be filed because of insufficient appropriations. 

An amount of EUR 0,8 million is also requested under heading 5 to cover additional costs related to 
staff missions in the framework of the refugee crisis. The missions are needed to ensure the presence 
of Commission staff on the ground in the countries where the situation is most critical. The deployed 
staff will coordinate and implement the emergency actions in response to the migration crisis and the 
situation of refugees, as well as support the Member States in evaluating the emergency measures and 
adapting their national programmes to better react to the crisis situation. 

4 

COVERING  EIF  FUNDS  DUE  UNDER  THE  EUROPEAN  FUND  FOR  STRATEGIC  INVESTMENT 
(EFSI) 

In order to be able to meet the Commission's fee obligations towards the European Investment Fund 
(EIF), the Commission proposes to allocate an amount of EUR 5 million in commitment and payment 
appropriations  to  budget  article  01 04 07  Fees  due  to  the  European  Investment  Fund  for  increased 
assistance  under  the  European  Fund  for  Strategic  Investments,  which  currently  has  a  token  entry 
(p.m.). 

The EIF will provide assistance in the implementation of the new small and medium-sized enterprise 
(SME) window products under the European Fund for Strategic Investments (EFSI). Start-up fees will 
need to be paid within a short period following the signature of the amendment to the EFSI agreement, 
which is expected to be finalised in early 2016. 

As foreseen by the EFSI Regulation17, such fees may be met by the general budget of the Union to the 
extent they  are not deducted from the remuneration or from  revenues, recoveries  or other  payments 
received by the EIF. However, very limited revenues are expected to materialise at the beginning of 
2016, when the EFSI will be in its early phase of implementation, while costs incurred by the EIF will 
increase consistently in parallel with the speeding up of the implementation of new instruments. 

17  

Regulation  (EU)  2015/1017  of  the  European  Parliament  and  of  the  Council  of  25  June  2015  on  the  European 
Fund  for  Strategic  Investments,  the  European  Investment  Advisory  Hub  and  the  European  Investment  Project 
Portal and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013 (OJ L 169, 1.7.2015, p. 1). 

15 

 
 
  
 
                                                 
5 

AGENCY FOR THE COOPERATION OF ENERGY REGULATORS (ACER) 

The  Agency  for  the  Cooperation  of  Energy  Regulators  (ACER)  was  created  by  the  Third  Energy 
Package  to  further  progress  the  completion  of  the  internal  energy  market  both  for  electricity  and 
natural gas. ACER was officially launched in March 2011, and has its seat in Ljubljana, Slovenia. The 
Administrative  Board  of  ACER  at  its  meeting  on  8  July  2015  adopted  a  decision  to  re-appoint  the 
present  Director  of  the  Agency  for  a  term  of  three  years,  starting  as  of  16  September  2015.  The 
decision states that the achievements of the Director evidenced in his appraisal would also merit his 
reclassification to grade AD 15. However, the Agency's establishment plan in the draft budget 2016 
did not yet include the reclassification of the Director from AD 14 to AD 15, as he was reappointed 
after the adoption of the draft budget. It is proposed to update ACER's establishment plan accordingly, 
as set out in the budgetary annex. The overall budget and the total number of posts of the agency will 
remain unchanged. 

6 

FOOD AND FEED SAFETY 

Based upon the analysis of the updated 2015 eradication work programmes submitted by the Member 
States  in  August  2015,  it  has  become  clear  that  some  Member  States  have  not  completed  the  work 
programme as initially foreseen. In particular the Blue Tongue vaccination campaigns have not been 
fully  implemented,  which  will  lead  to  decommitments  in  2015,  and  to  a  reduced  need  of  payment 
appropriations  in  2016.  As  a  result,  the  initial  request  for  payment  appropriations  on  budget  article 
17 04 01 Ensuring a higher animal health status and high level of protection of animals in the Union 
can be reduced by EUR 20,0 million. 

16 

 
 
  
 
 
6 

SUMMARY TABLE BY HEADING OF THE MULTIANNUAL FINANCIAL FRAMEWORK 

Heading 

Draft Budget 2016 

(incl. AL1/2016) 

Amending Letter 2/2016 

Draft Budget 2016 

(incl. AL1 & AL2/2016) 

CA 

PA 

CA 

PA 

CA 

PA 

1. 

Smart and inclusive growth 

69 743 081 847 

66 578 193 962 

 5 000 000 

 5 000 000 

69 748 081 847 

66 583 193 962 

Of which under Flexibility Instrument 
Of which under Global Margin for 
Commitments (GMC) 
Ceiling  

 543 000 000 

69 304 000 000 

Margin 

 103 918 153 

 543 000 000 

69 304 000 000 

 98 918 153 

1a  Competitiveness for growth and jobs 

18 921 431 584 

17 518 123 082 

 5 000 000 

 5 000 000 

18 926 431 584 

17 523 123 082 

Of which under Global Margin for 
Commitments (GMC) 
Ceiling 

 543 000 000 

18 467 000 000 

Margin 

 88 568 416 

 543 000 000 

18 467 000 000 

 83 568 416 

1b  

Economic  social and territorial 
cohesion 

Of which under Flexibility Instrument 

50 821 650 263 

49 060 070 880 

50 821 650 263 

49 060 070 880 

Ceiling 

50 837 000 000 

Margin 

 15 349 737 

50 837 000 000 

 15 349 737 

2. 

Sustainable growth: natural 
resources 

63 104 378 823 

55 865 891 958 

- 488 288 304 

- 488 288 304 

62 616 090 519 

55 377 603 654 

Ceiling 

64 262 000 000 

Margin 

1 157 621 177 

64 262 000 000 

1 645 909 481 

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

42 867 624 128 

42 859 334 601 

- 507 288 304 

- 507 288 304 

42 360 335 824 

42 352 046 297 

Net transfer between EAGF and EAFRD 

Sub-ceiling 

43 950 000 000 

Margin 

1 081 657 872 

43 950 000 000 

1 588 946 176 

3. 

Security and citizenship 

2 669 966 698 

2 258 959 739 

1 380 000 000 

 758 828 000 

4 049 966 698 

3 017 787 739 

Of which under Flexibility Instrument 

 123 966 698 

Ceiling 

2 546 000 000 

Margin 

1 503 966 698 

2 546 000 000 

4.  Global Europe 

8 881 729 361 

9 539 215 403 

 150 000 000 

 615 000 000 

9 031 729 361 

10 154 215 403 

Ceiling 

Margin 

9 143 000 000 

 261 270 639 

9 143 000 000 

 111 270 639 

5.  Administration 

8 908 692 052 

8 910 192 052 

 23 914 000 

 23 914 000 

8 932 606 052 

8 934 106 052 

Ceiling 

Margin 

9 483 000 000 

 574 307 948 

9 483 000 000 

 550 393 948 

Of which: Administrative expenditure of the 
institutions 

7 096 096 572 

7 097 596 572 

 23 914 000 

 23 914 000 

7 120 010 572 

7 121 510 572 

6.  Compensations 

Sub-ceiling 

7 679 000 000 

Margin 

 582 903 428 

Ceiling 

Margin 

7 679 000 000 

 558 989 428 

Total 

153 307 848 781 

143 152 453 114 

1 070 625 696 

 914 453 696 

154 378 474 477 

144 066 906 810 

 123 966 698 

 98 619 078 

1 503 966 698 

 808 604 378 

Of which under Flexibility Instrument 
Of which under Global Margin for 
Commitments (GMC) 
Ceiling 

 543 000 000 

154 738 000 000 

144 685 000 000 

Other special Instruments 

 524 612 000 

 389 000 000 

Margin 

2 097 117 917 

1 631 165 964 

 543 000 000 

154 738 000 000 

144 685 000 000 

2 406 492 221 

1 426 697 568 

 524 612 000 

 389 000 000 

Grand Total 

153 832 460 781 

143 541 453 114 

1 070 625 696 

 914 453 696 

154 903 086 477 

144 455 906 810 

17