AMENDING LETTER No 1 TO THE DRAFT GENERAL BUDGET 2017 Updating the estimated needs for agricultural expenditure and fisheries Enhancing successful programmes and instruments for sustainable growth Migration agenda, external investment plan and security Technical adjustments relating to agencies and administrative expenditure Increase of revenue linked to fines
Date: 2016-10-17
Institutions: Directorate-General for Budget, European Commission
Subjects: EAGF, EU migration policy, EU programme, administrative expenditure (EU), agricultural expenditure, amending budget, draft budget (EU), financial year, fisheries policy, general budget (EU)

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 17.10.2016 COM(2016) 679 final   AMENDING LETTER No 1 TO THE DRAFT GENERAL BUDGET 2017 Updating the estimated needs for agricultural expenditure and fisheries Enhancing successful programmes and instruments for sustainable growth  Migration agenda, external investment plan and security Technical adjustments relating to agencies and administrative expenditure Increase of revenue linked to fines  
 
 
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, 

Regulation  (EU,  Euratom)  No  966/2012  of  the  European  Parliament  and  of  the 
Council of 25 October 2012 on the financial rules applicable to the general budget of 
the Union1, and in particular Article 41 thereof, 

the  draft  general  budget  of  the  European  Union  for  the  financial  year  2017,  as 
adopted by the Commission on 18 July 20162, 

The European Commission hereby presents to the European Parliament and to the Council the 
amending letter No 1 to the draft general budget of the European Union for the financial year 
2017 for the reasons set out in the explanatory memorandum. 

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. 

1 
2 

OJ L 298, 26.10.2012, p. 1. 
COM(2016) 300, 18.7.2016. 

2 

 
 
  
 
                                                 
TABLE OF CONTENTS 

1. 

2. 

3. 

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

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

2.1   MAIN CHANGES PROPOSED ........................................................................................................................ 5 
2.2   EUROPEAN AGRICULTURAL GUARANTEE FUND (EAGF) .......................................................................... 7 
2.2.1   Overview ......................................................................................................................................... 7 
2.2.2   Detailed comments .......................................................................................................................... 8 
2.3   SUSTAINABLE FISHERIES PARTNERSHIP AGREEMENTS .............................................................................. 9 

GROWTH AND JOBS : ENHANCING SUCCESSFUL PROGRAMMES AND INSTRUMENTS 
 .................................................................................................................................................................. 9 

3.1   HORIZON 2020 ......................................................................................................................................... 11 
3.2   COMPETITIVENESS OF ENTERPRISES AND SMALL AND MEDIUM-SIZED ENTERPRISES (COSME) ............... 11 
3.3   CONNECTING EUROPE FACILITY (CEF) - TRANSPORT ............................................................................. 12 
3.4   EDUCATION, TRAINING AND SPORT (ERASMUS+) .................................................................................... 12 
3.5   WIFI4EU ................................................................................................................................................. 12 
3.6   USE OF THE GLOBAL MARGIN FOR COMMITMENTS FOR HEADING 1A ....................................................... 14 

4. 
PARTNERSHIP FRAMEWORK UNDER THE MIGRATION AGENDA, EXTERNAL 
INVESTMENT PLAN, AND SECURITY ........................................................................................................ 14 

4.1   A QUICK START FOR THE NEW PARTNERSHIP FRAMEWORK PROCESS WITH PRIORITY PARTNERS ............. 14 
4.2   ENDOWMENT OF THE NEW EUROPEAN FUND FOR SUSTAINABLE DEVELOPMENT (EFSD) GUARANTEE 

FUND ....................................................................................................................................................... 15 
4.3   MOBILISATION OF THE CONTINGENCY MARGIN FOR HEADING 4 .............................................................. 16 
4.4   REINFORCING THE ESTABLISHMENT PLAN OF EUROPOL .......................................................................... 16 

5. 

OTHER ADJUSTMENTS ................................................................................................................... 17 

5.1.   ADJUSTMENTS TO THE ESTABLISHMENT PLANS OF FRONTEX AND EASO ............................................... 17 
5.2.   ADJUSTMENTS TO THE ESTABLISHMENT PLANS OF EU-OSHA AND EUROFOUND ............................... 17 
5.3.  TRANSFER OF THREE DOUBLE-HATTED EUSRS FROM HEADING 4 (SECTION III- COMMISSION) TO 

HEADING 5 (SECTION X- EEAS) .............................................................................................................. 18 
5.4.  REMUNERATIONS AND PENSIONS ............................................................................................................. 20 
5.5.  CHANGE IN THE ESTABLISHMENT PLANS OF THE EUROPEAN PARLIAMENT, THE EUROPEAN ECONOMIC 

AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS ........................................................... 21 

6. 

7. 

INCREASE OF THE REVENUE LINKED TO FINES ................................................................... 22 

SUMMARY TABLE BY MFF HEADING ......................................................................................... 23 

3 

 
 
  
 
 
 
1. 

INTRODUCTION 

This  Amending  Letter  No 1  to  the  draft  budget  for  the  year  2017  (AL 1/2017)  proposes  four  main 
areas  of  amendment  to  the  draft  budget  (DB) 2017.  Three  are  policy-related:  for  agriculture  and 
fisheries, for competitiveness for growth and jobs, and for the new Partnership Framework under the 
Migration  Agenda,  the  External  Investment  Plan,  and  security.  The  fourth  group  of  amendments 
proposed relates to a number of administrative and technical adjustments. In more detail, AL 1/2017 
covers the following: 

  The  updating  of  the  estimated  needs,  assigned  revenue  and  appropriations  for  agricultural 
expenditure. In addition to changing market factors, the AL 1/2017 also incorporates the impact of 
decisions in the agricultural sector since the DB 2017 was presented in June 2016, as well as other 
proposals  expected  to  have  a  significant  effect  during  the  budget  year.  After  integrating  the 
additional support package for the livestock sectors announced in July and taking into account the 
additional revenue assigned to the European Agriculture and Guarantee Fund (EAGF), the level of 
commitment  appropriations  remains  unchanged,  with  a  slight  reduction  (-EUR 1 million)  in 
payment appropriations. 

  The phasing in  of reinforcements announced in  the mid-term review/revision of the  multiannual 
financial  framework  2014-20203  for  sustainable  growth,  with  EUR 200 million  in  commitment 
appropriations  and  EUR 7 million  in  payment  appropriations  in  heading  1a,  Competitiveness  for 
growth  and  jobs.  The  Commission  proposes  to  finance  the  commitments  through  the  Global 
margin for commitments (GMC) and the unallocated margin. The breakdown is as follows: 

  Horizon  2020:  +EUR 50 million  in  commitment  appropriations  and  EUR 7 million  in 

payment appropriations; 

  Competitiveness  of  entreprises  and  small  and  medium-sized  enterprises  (COSME): 

+EUR 50 million in commitment appropriations; 

  Connecting  Europe  Facility  (CEF)  –  Transport:  +EUR 50 million  in  commitment 

appropriations; 

  Erasmus+: +EUR 50 million in commitment appropriations; 

  WiFi4EU,  an  initiative  aiming  to  help  European  communities  offer  free  Wi-Fi  access 
points to any citizen: +EUR 20 million in commitment appropriations redeployed from the 
'Information and Communication Technology' strand of the CEF. 

  Reinforcing by EUR 1 billion the budgetary resources under heading 4, Global Europe, to address 
the  root  causes  of  migration  and  promote  the  swift  implementation  of  agreements  with  third 
countries under the new Partnership Framework process and for the creation of a European Fund 
for  Sustainable  Development  (EFSD)  with  a  new  EFSD  Guarantee  Fund4.  The  Commission 
proposes to increase commitment appropriations by EUR 1 billion and payment appropriations by 
EUR 210 million.  Given  the  very  low  margin  in  heading  4  (created  by  the  transfer  of  the  EU 
Special  Representatives  from  heading  4  to  heading  5,  Administration),  most  of  this  increase  in 
commitment appropriations is financed through a corresponding mobilisation of the Contingency 
Margin  to  be  offset  in  2017  against  the  unallocated  margins  of  heading  2,  Sustainable  Growth: 
Natural Resources and in 2018-2019 against the unallocated margins of heading 5. 

3  
4 

COM(2016) 603 final, 14.9.2016. 
COM(2016) 586 final, 14.9.2016. 

4 

 
 
  
 
                                                 
  An increase in the number of posts of Europol to reinforce operational support, notably to provide 
a  24/7  service  and  on-the-spot  deployment  capabilities  as  announced  in  the  Commission's 
communication Enhancing security in a world of mobility5. 

  An  upgrading  of  additional  posts  requested  for  Frontex  (European  Border  and  Coast  Guard 

agency) and EASO in light of a more detailed assessment of the job profiles required. 

  Minor adjustments to the establishment plans of the European agency for safety and health at work 
(EU-OSHA) and the European foundation for the improvement of living and working conditions 
(EUROFOUND). 

  The  transfer  of  expenditure  related  to  the  three  double-hatted  EU  Special  Representatives 

(EUSRs) from heading 4 to heading 5. 

  An  update  of  the  likely  needs  for  additional  appropriations  related  to  2017  for  the  salaries  and 
pensions of all institutions. These needs can be updated as required on finalisation of the official 
statistical report, which will be available at the end of October.  

  The alignment of the establishment plans of the European Parliament, the European Economic and 
Social  Committee  and  the  Committee  of  the  Regions,  to  reflect  the  agreement  reached  between 
them. 

The Commission also wishes to stress that it intends to fund the Youth Employment Initiative (YEI) 
in 2017 up to a level of EUR 500 million in commitment appropriations. However, at this stage, the 
Commission  does  not  propose  the  budgetary  allocations  in  this  Amending  Letter  as  it  intends  to 
finance  this  amount  from  the  GMC  which  will  be  available  after  the  technical  adjustment  of  2017. 
Consequently, the Commission will propose to add these allocations through a draft amending budget 
to  be  submitted  to  the  European  Parliament  and  the  Council  immediately  after  the  technical 
adjustment in early 2017. 

Overall,  the  net  impact  of  AL 1/2017  on  expenditure  in  the  2017  draft  budget  is  an  increase  of 
EUR 1 257,2 million in commitment appropriations and an increase of EUR 523,1 million in payment 
appropriations. 

On the revenue side of the budget, some fines decided by the Commission recently will be paid and all 
legal  remedies  will  be  exhausted  at the  end  of  2016  for  an estimated  amount  of  EUR 1 billion. The 
Commission proposes to increase the relevant budget items in the revenue part of the budget by this 
amount.  This  will  reduce  the  GNI  contribution  requested  from  the  national  budgets  by  the  same 
amount. 

2. 

AGRICULTURE AND FISHERIES 

2.1   Main changes proposed 

The  Commission  proposes  to  update  the  expenditure  estimates  for  agriculture  by  +EUR 527 million 
compared to DB 2017. This update of needs is taking into account the financial consequences of the 
additional  support  package  for  the  livestock  sectors  announced  in  July  and  reflects  the  most  recent 
information  available  as  regards  other  expenditure.  There  is  also  an  update  of  the  situation  for 
Sustainable Fisheries Partnership Agreements, as regards appropriations proposed for the operational 
line and for the ‘reserve’. 

In  addition  to  the  temporary  support  measures  under  Budget  2015  (EUR 276,6 million)  and  Budget 
2016 (EUR 711,5 million), the following additional support measures are budgeted in DB 2017 (incl. 
AL 1/2017): 

5  

COM(2016) 602 final, 14.9.2016. 

5 

 
 
  
 
                                                 
(in million EUR, rounded figures at current prices) 

Budget line 
05 02 08 03 
05 02 08 99 
05 02 10 01 

05 02 12 02 
05 02 12 04 
05 02 12 99 
05 02 12 99 
05 02 12 99 

Measure 
Extension  of  the  temporary  exceptional  support  measures  for  producers  of  certain 
fruit and vegetables  
Reinforcement  of  promotion  activities  for  dairy  products  and  pigmeat  in  third 
countries 
Private storage and public intervention for skimmed milk powder  
Private storage for butter  
Private storage for cheese (residual amounts) 
Targeted aid for temporary reduction of milk production 
Exceptional adjustment aid to milk producers and farmers in other livestock sectors 

Amount  

100,0 

21,5(1)(2) 

19,0 
9,0 
4,6 
150,0 
350,0 

Total of all additional support measures included in DB 2017 (incl. AL 1/2017) 
(1) In total EUR 30 million announced in 2014, of which EUR 3 million in 2015, EUR 13,5 million in 2016 and EUR 13,5 million in 

654,1 

2017.  

(2) Additional EUR 30 million announced in 2015, of which EUR 8 million in 2017 and the remaining EUR 22 million in 2018 and 

thereafter. 

Appropriations for agricultural expenditure financed under the EAGF in AL 1/2017 are proposed to be 
budgeted  at  EUR 42 937,6 million,  which  is  below  the  2017  net  balance  available  for  EAGF 
expenditure ('net sub-ceiling') of EUR 44 145,7 million6. Despite a net increase of the EAGF needs by 
EUR 527,0 million,  EAGF  appropriations  compared  to  DB 2017  can  remain  unchanged  as  this 
increase 
the  EAGF 
is 
(+EUR 527,0 million). 

fully  compensated 

revenue  assigned 

the  additional 

for  by 

to 

The following table summarises the effect of AL 1/2017 on heading 2 as a whole: 

Draft Budget 2017 

 (in million EUR, rounded figures at current prices) 

Amending Letter 
No 1/2017 

Draft Budget 2017  
(incl. AL 1/2017) 

Commitments 

Payments  Commitments 

Payments  Commitments 

Payments 

—  European Agricultural Guarantee Fund (EAGF)  

—  European Agricultural Fund for Rural 

Development (EAFRD) 

42 937,6 

14 365,5 

42 889,0 

11 208,5 

—  European Maritime and Fisheries Fund (EMFF), 

1 050,1 

710,8 

0,0 

0,0 

0,0 

-1,0 

0,0 

42 937,6 

14 365,5 

42 888,0 

11 208,5 

0,0 

1 050,1 

710,8 

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

  —  Sustainable Fisheries Partnership 

117,7 

112,7 

+0,7 

+0,7 

118,4 

113,4 

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

  —  Sustainable Fisheries Partnership 

15,5 

15,5 

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 

Total 

Ceiling 

Of which offset against Contingency Margin 

Margin 

Of which EAGF 

EAGF Sub-Ceiling (after technical adjustment of the 
MFF 2014-2020) (1) 

Rounding difference excluded for margin 
calculation 

-0,7 

0,0 

0,0 

0,0 

0,0 

0,0 

-0,0 

493,7 

p.m. 

p.m. 

54,8 

0,0 

363,7 

p.m. 

9,6 

54,8 

0,0 

58 901,7 

55 236,2 

-200,0   

-200   

0,0 

42 889,0 

60 191,0   

-650,0   

639,3   

42 937,6 

44 146,0   

0,3   

-0,7 

0,0 

0,0 

0,0 

0,0 

0,0 

-1,0 

-1,0 

14,8 

14,8 

363,7 

p.m. 

9,6 

54,8 

0,0 

55 235,2 

42 888,0 

493,7 

p.m. 

p.m. 

54,8 

0,0 

58 901,7 

60 191,0 

-850,0 

439,3 

42 937,6 

44 146,0 

0,3 

6  

Under the 2014-2020 MFF, the initial EAGF sub-ceiling for 2017 amounted to EUR 44 863 million. After taking 
into account a net amount of EUR 717.3 million to be transferred to Rural Development, which had already been 
incorporated  in  the  DB  2017,  the  net  balance  available  for  EAGF  expenditure  (‘net  sub-ceiling’)  amounts  to 
EUR 44 145,7 million. The EAGF needs for 2017 are assessed against this EAGF ‘net sub-ceiling’. 

6 

 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Draft Budget 2017 

Amending Letter 
No 1/2017 

Draft Budget 2017  
(incl. AL 1/2017) 

Commitments 

Payments  Commitments 

Payments  Commitments 

Payments 

Net balance available for EAGF expenditure (2) 

44 145,7   

44 145,7 

(1) The related amounts are rounded up in EUR million. 
(2) 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 2016/257 of 24 February 2016.  

Thus, overall appropriations requested for heading 2 in 2017 are estimated at EUR 58 901,7 million. 
This  leaves  a  margin  of  EUR 439,3 million  in  commitment  appropriations  below  the  corresponding 
MFF ceiling, after taking into account an amount of EUR 650 million under the Contingency margin 
for offsetting part of the needs under heading 3,  Security and Citizenship, as presented in DB 2017, 
and a further amount of EUR 200 million to offset part of the needs of heading 4, Global Europe, as 
presented  in  this  Amending  Letter.  Payment  appropriations  in  AL 1/2017  are  slightly  lower  (-
EUR 1,0 million) compared to DB 2017. 

2.2  

European Agricultural Guarantee Fund (EAGF) 

2.2.1   Overview 

The purpose of AL 1/2017 is to update estimates for agricultural expenditure based on the most up-to-
date  economic  data  and  legislative  framework.  By  late  September  2016,  the  Commission  has  at  its 
disposal  a  first  indication  of  the  level  of  production  for  2016  and  perspectives  for  the  agricultural 
markets, which  are the basis for the  updated estimates  of the budgetary needs for 2017. Apart from 
taking  into  account  market  factors,  this  AL 1/2017  also  incorporates  the  impact  of  legislative 
decisions  in  the  agricultural  sector  since  the  DB 2017  was  drawn  up  in  June  2016.  This  relates  in 
particular  to  a  series  of  Commission  Delegated  and  Implementing  Acts  on  additional  temporary 
support measures for the livestock sectors, of which the dairy sector is the main beneficiary. 

Overall,  2017  EAGF  needs  (after  taking  into  account  EAGF  provisions  related  to  'financial 
discipline')  are  now  estimated  at  EUR 45 344,6 million,  compared  to  EUR 44 817,6 million  in 
DB 2017  (+EUR 527,0 million).  This  increase  is  mostly  due  to  the  additional  temporary  support 
measures  for  the  livestock  sectors  budgeted  in  chapter  05 02  Improving  the  competitiveness  of  the 
agricultural  sector  through  interventions  in  agricultural  markets,  for  a  total  amount  of  around 
EUR 500 million. There are, in addition, some small variations for mainstream market measures and 
for  expenditure  under  chapters  05 07 Audit  of  agricultural  expenditure  financed  by  the  European 
Agricultural  Guarantee  Fund  (EAGF)  and  05 08  Policy  strategy  and  coordination,  which  are  also 
incorporated into AL 1/2017. Needs for chapter 05 03 Direct payments aimed at contributing to farm 
incomes,  limiting  farm  incomes  variability  and  meeting  environment  and  climate  objectives  remain 
almost unchanged compared to DB 2017. 

The amount of assigned revenue expected to be available in 2017 increases from EUR 1 880 million 
in DB 2017 to EUR 2 407 million (+EUR 527 million), fully compensating the additional needs. The 
update of estimates on the amounts originating from clearance of accounts decisions and irregularities 
is  minor  and  does  not  change  the  overall  amount  assumed  in  DB 2017  (EUR 1 430 million). 
Furthermore,  the  AL 1/2017  incorporates  an  expected  carry-over  of  assigned  revenue  from  2016  to 
2017 (EUR 977 million), of which an amount of EUR 450 million was already included in DB 2017, 
corresponding  to  an  expected  EAGF  surplus  from  2016.  This  year,  however,  the  final  size  of  this 
surplus is much more difficult to forecast as large amounts of expenditure still have to be declared by 
the  Member  States  for  September  and  October  2016,  reflecting  delays  in  the  implementation  of  the 
new direct payment schemes in the first year of application. The estimated surplus does not include 
unused appropriations of the 2016 agricultural crisis reserve (EUR 441,6 million), which will not be 
called on, as these unused appropriations will be carried over for reimbursement to farmers subject to 
the financial discipline in 2017. 

7 

 
 
  
 
 
 
 
 
 
 
As  a  result  of  these  updates,  commitment  appropriations  of  EUR 42 937,6 million,  which  includes 
EUR 450,5 million for the Reserve for crises in the agricultural sector, are required to cover EAGF 
needs for 2017. As was the case for the DB 2017, this overall amount remains below the EAGF net 
sub-ceiling of EUR 44 145,7 million. This means that the financial discipline mechanism will only be 
applied to establish the agricultural crisis reserve for budget year 20177. 

2.2.2   Detailed comments 

05 02  Improving  competitiveness  of  the  agricultural  sector  through  interventions  in 
agricultural markets (appropriations +EUR 514,4 million) 

Interventions in agricultural markets 

Draft Budget 2017 

(in million EUR, rounded figures at current prices) 

Amending Letter 
 No 1/2017 

Draft Budget 2017  
(incl. AL 1/2017) 

Needs 

-Estimated assigned revenue available in 2017 

Appropriations requested 

2 692,4 

400,0 

2 292,4 

+514,4 

+0,0 

+514,4 

3 206,8 

400,0 

2 806,8 

Overall,  the  needs  for  intervention  measures  on  agricultural  markets  increase  by  EUR 514,4 million 
compared  to  the  DB 2017.  As  the  assigned  revenues  expected  to  be  available  for  chapter  05 02 
(amounting  to  EUR 400,0 million)  remain  unchanged  compared  to  the  DB 2017,  the  appropriations 
requested in AL 1/2017 increase by the same amount. 

For  fruit  and  vegetables,  apart  from  a  shift  of  appropriations  between  two  budget  items 
(EUR 54 million  from  05 02 08 03  to  05 02 08 99),  there  is  a  small  increase  for  budget  item 
05 02 08 03 Operational funds for producer organisations (+EUR 18 million).  

Appropriations  for  the  wine  sector  on  budget  item  05 02 09 08  financing  the  national  support 
programmes are proposed to be reduced by EUR 6 million, reflecting the most recent implementation 
figures.  

The  largest  modification  proposed  in  AL 1/2017  for  market  measures  concerns  milk  and  milk 
products  (budget  article  05 02 12)  with  an  increase  of  EUR 501,4 million.  The  largest  amount  (+ 
EUR 500 million)  is  for  providing  further  exceptional  support  in  the  form  of  targeted  aid  for 
temporary  reduction  of  milk  production8  (EUR 150 million)  and  for  exceptional  adjustment  aid  to 
milk producers and farmers in other livestock sectors9 (EUR 350 million), for which Member States 
will have substantial flexibility to target the support to those farmers particularly affected.  

05 03  Direct  payments  aimed  at  contributing  to  farm  incomes,  limiting  farm  income 
variability and meeting environment and climate objectives (appropriations - EUR 527,9 million) 

Direct payments 

Draft Budget 2017 

(in million EUR, rounded figures at current prices) 

Amending Letter 
 No 1/2017 

Draft Budget 2017  
(incl. AL 1/2017) 

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

Needs 

- Estimated assigned revenue available in 2017 

Appropriations requested 

41 994,6 

1 480,0 

40 514,6 

-0,9 

+527,0 

-527,9 

41 993,7 

2 007,0 

39 986,7 

Compared  to  DB 2017,  appropriations  requested  for  chapter  05 03  are  revised  downwards  by 
EUR 527,9 million.  This  change  is  mostly  due  to  the  higher  amount  of  revenue  assigned 
(+EUR 527,0 million)  to  item  05 03 01 10  Basic  payment  scheme  (BPS),  for  which  the  estimated 
needs  are  unchanged  compared  to  DB 2017.  Overall,  based  on  the  most  recent  data  on 
implementation,  only  a  minor  change  of  needs  (-EUR 0,9 million)  for  direct  payments  is  proposed. 

7  

8  
9  

The adjustment rate for direct payments related to the financial discipline mechanism in respect of the calendar 
year  2016  is  set  in  Commission  Implementing  Regulation  (EU)  2016/1153.  The  Commission  will  adapt  this 
adjustment rate on the basis of this AL 1/2017. 
Commission Delegated Regulation (EU) 2016/1612. 
Commission Delegated Regulation (EU) 2016/1613. 

8 

 
 
  
 
                                                 
However, at the moment the 2017 draft budget was adopted, the information on the implementation of 
the  Small  Farmers  Scheme  was  not  available  and  the  corresponding  amounts  were  budgeted  under 
different items. Now, after this information has been provided by the Member States, it is proposed to 
move the appropriations needed to budget item 05 03 02 61. The increase of EUR 1 347,0  million on 
that budget item is fully compensated for by decreases for several other direct payment schemes, in 
particular for items 05 03 01 02, 05 03 01 10 and 05 03 01 11, so that this shift is neutral across all the 
direct payment schemes concerned. 

Other  agricultural  expenditure  financed  by  the  European  Agricultural  Guarantee  Fund 
(EAGF) (appropriations +EUR 13,5 million) 

Appropriations  for  budget  item  05 07 01 07  Financial  corrections  in  favour  of  Member  States 
following  conformity  clearance  decisions  need  to  be  increased  by  EUR 25,0 million  reflecting  a 
forthcoming  Commission  Decision  that  corrects  the  amount  of  financial  corrections  cashed-in  in 
previous years. Appropriations for budget article 05 07 02 Settlement of disputes can be decreased by 
EUR 21 million  as  some  of  the  payments  expected  in  2017  related  to  the  so-called  'Jülich'  Court  of 
Justice  case  on  sugar  production  levies10  will  be  made  earlier  in  2016.  Finally,  updated  budgetary 
estimates are the reason for increasing commitment appropriations (+EUR 9,5 million) and payment 
appropriations  (+EUR 8,5 million)  for  budget  articles  05 08 01  Farm  Accountancy  Data  Network 
(FADN),  05 08 03  Restructuring  of  systems  for  agricultural  surveys  and  05 08 09  EAGF  – 
Operational technical assistance11. 

Sustainable Fisheries Partnership Agreements 

2.3  
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 (SFPAs). As the agreement with the Cook Islands and the related Protocol is expected to 
enter into force before the end of 2016, the Commission proposes to move commitment and payment 
appropriations from the reserve article 40 02 41 to budget article 11 03 01 Establishing a governance 
framework  for  fishing  activities  carried  out  by  Union  fishing  vessels  in  third  country  waters  ,  for 
EUR 0,735 million. The proposed modification is budgetary neutral. 

Sustainable fisheries partnership 
agreements 

Operational line (11 03 01) 

Reserve (40 02 41) 

Draft Budget 2017 

(in million EUR, rounded figures at current prices) 

Amending Letter 
 No 1/2017 

Draft Budget 2017  
(incl. AL 1/2017) 

Commitments  Payments  Commitments  Payments  Commitments  Payments 

117,7 

15,5 

133,2 

112,7 

15,5 

128,2 

+0,735 

-0,735 

0,0 

+0,735 

-0,735 

0,0 

118,4 

14,8 

133,2 

113,4 

14,8 

128,2 

Total 

3. 

GROWTH AND JOBS : ENHANCING SUCCESSFUL PROGRAMMES AND INSTRUMENTS 

On 14 September 2016 the Commission presented its proposals to  the European Parliament and the 
Council  for  a  Mid-term  review/revision  of  the  multiannual  financial  framework  2014-2020:  An  EU 
budget  focused  on  results13.  The  mid-term  review/revision  is  accompanied  by  a  number  of  sectorial 
proposals  –  including  a  new  Telecommunications  package  setting  out  a  European  vision  of  internet 
connectivity for citizens and business, the so-called WiFi4EU proposal14. 

10  
11  

12  
13  
14  

Communication of the Commission to the Council (COM(2013) 526 final) of 17.7.2013. 
Articles 05 08 01, 05 08 02 and 05 08 03, which are for measures under direct management by the Commission, 
are  among  the  few  EAGF  budget  lines  working  with  differentiated  appropriations,  while  most  of  the  other, 
especially  such  for  financing  measures  under  shared  management  with  Member  States,  operate  with  non-
differentiated appropriations. 
OJ C 373, 20.12.2013, p. 1. 
COM(2016) 603, 604, 605, 606, 607, 14.9.2016 and accompanying Staff Working Document SWD(2016) 299. 
COM(2016) 589, 14.9.2016. 

9 

 
 
  
 
 
                                                 
One  of  the  conclusions  of  the  review/revision  is  that,  compared  with  the  previous  period,  the  MFF 
2014-2020 has significantly recalibrated spending towards activities conducive to the creation of jobs 
and  growth.  A  number  of  programmes  financed  under  heading  1a,  Competitiveness  for  growth  and 
jobs, have experienced strong demand resulting in effective absorption and fast project selection: it is 
thus  proposed  to  supplement  their  initial  allocations  over  the  remaining  period  of  the  MFF.  The 
Commission  proposes  to  phase  in,  as  from  2017,  additional  funding  for  Horizon  2020,  COSME 
(Competitiveness  of  Enterprises  and  small  and  medium-sized  enterprises),  the  Connecting  Europe 
Facility (CEF-Transport) and Erasmus+, together with the new WiFi4EU legislative proposal.  

The proposed indicative financial programming by budget item is set out for information in the table 
below. Reinforcements envisaged in years 2018, 2019 and 2020 would be subject to the result of the 
annual  budgetary  procedure.  These  reinforcements  are  within  the  10  %  flexibility  provided  for  in 
point 17 of the IIA. 

Budget line 

COSME 
02 02 02  

CEF Transport 
06 02 01 01 

06 02 01 02 
06 02 01 03 

H2020 
08 02 01 01  

08 02 02 03 

08 02 04 
09 04 02 01 

Erasmus+ 
15 02 01 01 

15 02 01 02 

Name 

(in million EUR, rounded figures at current prices) 
Total 

2018 

2020 

2019 

2017 

Improving  access  to  finance  for  small  and  medium-
sized enterprises (SMEs) in the form of equity and debt 
Total COSME 

50 

50 

Removing  bottlenecks,  enhancing  rail  interoperability, 
bridging  missing  links  and  improving  cross-border 
sections 
Ensuring sustainable and efficient transport systems 
Optimising  the  integration  and  interconnection  of 
transport modes and enhancing interoperability 

Total CEF transport 

50 

50 

80 

80 

30 

30 
80 

50 

50 

50 

50 
50 

140 

150 

20 

20 

20 

20 
20 

60 

200 

200 

100 

100 
300 

400 

in 

the  European 

Strengthening  frontier  research 
Research Council  
Increasing  innovation  in  small  and  medium-sized 
enterprises (SMEs) 
Spreading excellence and widening participation  
Leadership 
technology 

information  and  communications 

in 

16,7 

50 

16,7 

16,7 

100 

50 

50 

100 

16,7 
16,7 

50 
50 

21,7 
11,7 

21,7 
11,7 

110 
90 

Total H2020 

50 

150 

100 

100 

400 

Promoting excellence and cooperation in the European 
education  and  training  area  and  its  relevance  to  the 
labour market 
Promoting excellence and cooperation in the European 
youth  area  and  the  participation  of  young  people  in 
European democratic life 

23,5 

16,5 

15 

15 

70 

26,5 

33,5 

35 

35 

130 

Total H2020 

50 

50 

50 

50 

200 

The mid-term review/revision also proposes to continue the Youth Employment Initiative (YEI) in 
heading  1b  by  allocating  EUR 1 billion  over  the  period  2017-2020.  The  Commission  proposes  to 
allocate EUR 500 million in 2017 and EUR 500 million in 2018 financed from the Global margin for 
commitments  (GMC).  At  present  the  GMC  available  in  2017  is  only  EUR 174,1 million  after 
financing EFSI. However, given the margin in commitments in the 2016 budget, the GMC is likely to 
increase  after  the  technical  adjustment  in  early  2017.  The  Commission  proposes  to  add 
EUR 500 million  to  the  YEI  in  2017  through  a  draft  amending  budget  to  be  proposed  immediately 
after the technical adjustment.  

10 

 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At this stage, the only adjustments proposed in this amending letter in relation to growth and jobs are 
those related to heading 1a. 

3.1  

Horizon 2020 

Calls  for  proposals  under  Horizon  2020  have  been  largely  oversubscribed.  To  continue  to  reinforce 
the  programme's  support  to  growth  and  jobs,  additional  commitment  appropriations  amounting  to 
EUR 50 million  are  proposed  in  2017,  targeting  a  limited  number  of  priority  measures  to  achieve 
maximum impact, as follows: 

– 

– 

– 

European  Research  Council:  the  ERC  promotes  frontier  research  into  new  and  promising 
areas, which is  of critical importance to consolidate Europe's science base.  Currently a large 
number of excellent projects cannot be financed: the EU contribution can only cover 10 % of 
the budget proposed for eligible projects, and there is even a risk that it falls below this critical 
10 % overall success rate. Should this happen, some of the very top individual scientists may 
well  decide  not  to  apply.  So  far,  the  ERC  has  funded  far  fewer  than  1 %  of  Europe’s 
researchers. Additional resources would also give the ERC selection committees the possibility 
to take higher risks when considering the most ambitious projects. 

Spreading excellence and widening participation: Widening is a highly regarded programme as 
it  promotes  Research  and  Development  (R&D)  capacity  in  low  R&D  performing  countries 
through  institution  building/networking  and  learning  from  the  experience  of  advanced 
partners.  These  are  not  typical  Horizon  2020  R&D  actions.  In  particular  teaming  actions, 
aiming  to  create  centres of excellence in  Widening countries, have  a great leverage  effect as 
they  require  mobilisation  of  a  high  amount  of  national  resources  to  complement  the  EU 
contribution  (thus  maximizing  synergies  with  European  Structural  and  Investment  Funds).  
The  additional  resources  for  the  Widening  part  of  Horizon  2020  will  make  it  possible  to 
maximise the impact of key actions such as teaming.  Furthermore, its average success rate is 
below  the  average  of  Horizon  2020,  and  only  one  out  of  five  high  quality  projects  could  be 
financed. 

The Leadership in Enabling and Industrial Technologies (LEIT- ICT) programme will support 
investments in high-performance computing, which were identified in the mid-term review as 
a crucial priority in the digital area. To benefit fully from the opportunities of the digital single 
market,  the  funding  will  contribute  to  the  creation  of  a  European  High  Performance 
Computing (HPC) ecosystem by developing a full prototype of an exascale demonstrator and 
the application layer needed. 

Budget line 

08 02 01 01  
08 02 04 
09 04 02 01 
Total 

Name 

Strengthening frontier research in the European Research Council  

Spreading excellence and widening participation  

Leadership in information and communications technology 

Commitment 
appropriations 
16 665 000 
16 665 000 
16 670 000 
50 000 000 

(in EUR) 

Payment 
appropriations 

660 000 
5 400 000 
830 000 
6 890 000 

3.2  

Competitiveness of enterprises and small and medium-sized enterprises (COSME) 

Support to European SMEs is key to boosting competitiveness, job creation and growth. The financial 
instruments under COSME (Competitiveness of Enterprises and small and medium-sized enterprises) 
support those SMEs experiencing difficulties in obtaining finance from financial intermediaries, due 
to their perceived higher risk or lack of collateral. To improve the financial environment of SMEs, the 
Commission  proposes an increase in commitment appropriations of EUR 50 million to  reinforce the 
Loan  Guarantee  Facility  and  the  Equity  Facility  for  Growth  under  the  programme.  The  instruments 
have been implemented successfully, as shown by the strong demand from SMEs. Given the lead time 
required for the implementation of these projects, no additional payment appropriations are requested 
at this stage. 

11 

 
 
  
 
 
Budget line 

02 02 02  

Total 

Name 

Improving access to finance for small and medium-sized enterprises (SMEs) in 
the form of equity and debt 

(in EUR) 

Commitment 
appropriations 
50 000 000 

Payment 
appropriations 
0 

50 000 000 

0 

3.3  

Connecting Europe Facility (CEF) - Transport 

The 2014 and 2015 calls for proposals launched under the transport strand of the Connecting Europe 
Facility (CEF-Transport) were very successful. Given the high demand and effective absorption, the 
Commission  has  proposed  in  the  context  of  the  mid-term  review/revision  to  reinforce  the  original 
allocation of CEF-Transport by EUR 400 million over 2017 – 2020. Of this amount, EUR 50 million 
is proposed to be allocated in 2017 to enhance EU support to the integration and interconnection of 
transport modes and to support the operability of transport services. Given the lead time required for 
the implementation of these projects, no additional payment appropriations are requested at this stage. 

Budget line 

06 02 01 03 

Total 

Name 

Optimising  the  integration  and  interconnection  of  transport  modes  and 
enhancing interoperability 

Commitment 
appropriations 
50 000 000 

50 000 000 

(in EUR) 

Payment 
appropriations 

0 

0 

3.4   Education, Training and Sport (Erasmus+) 

Building on the high demand for Erasmus+ activities in previous years as well as the strong take-up in 
the current financial framework and the newly announced European Solidarity Corps, the Commission 
has proposed to increase the budget for this programme by EUR 200 million over 2017-2020. Of this 
amount EUR 50 million is foreseen already in 2017 for actions increasing mobility opportunities for 
education and training (including apprenticeships), for actions which are considerably over-subscribed 
(such  as  initiatives  related  to  social  inclusion  and  combating  extremism)  as  well  as  for  newly 
announced activities. 

As  regards  payment  appropriations,  the  Commission  will  cover  any  needs  resulting  from  these 
additional commitments from the amounts already included in the DB 2017. 

Budget line 

15 02 01 01 

15 02 01 02 

Total 

Name 

Promoting  excellence  and  cooperation  in  the  European  education  and  training 
area and its relevance to the labour market 
Promoting  excellence  and  cooperation  in  the  European  youth  area  and  the 
participation of young people in European democratic life 

Commitment 
appropriations 
23 500 000 

26 500 000 

50 000 000 

(in EUR) 

Payment 
appropriations 

0 

0 

0 

3.5   WiFi4EU 

The  WiFi4EU  proposal  embodies  the  Commission's  wish  to  promote  free  Wi-Fi  connectivity  for 
citizens and visitors in public spaces such as parks, squares, public buildings, libraries, health centres, 
and museums, everywhere in Europe. The initial budget proposed for the scheme is EUR 120 million 
between 2017-2019. It will support the installation of state-of-the-art equipment like Wi-Fi antennas 
in the centres of community life. To start the new actions of the WiFi4EU proposal, the creation of a 
dedicated budget line is necessary as of 2017. As set out in the financial statement accompanying the 
proposal,  in  the  first  year  of  the  new  activity  EUR 20 million  is  needed  to  cover  the  operational 
expenditure, administrative support in the Commission and the management of the new activities by 
the  Innovation  and  Networks  Executive  Agency  (INEA).  However,  the  corresponding  commitment 
and payment appropriations will be entirely met through redeployment from other budget lines of the 
CEF-Telecom programme, so the budgetary effect is neutral. 

12 

 
 
  
 
 
 
 
Budget line 

09 03 04 
06 01 06 01 
09 01 04 01 
09 03 02 

09 03 03 

Total 

Name 

WiFi4EU - Support the deployment of free local wifi 

Innovation and networks Executive Agency  contribution from CEF 

Suppport Expenditure for Connecting Europe Facility (CEF) 

to  private 
Creating  an  environment  more  conducive 
telecommunication infrastructure projects — CEF broadband 
Promoting interoperability, sustainable deployment, operation and upgrading of 
trans-European  digital  service  infrastructures,  as  well  as  coordination  at 
European level 

investment 

for 

Commitment 
appropriations 
19 330 000 
580 000 
90 000 
-19 422 150 

(in EUR) 

Payment 
appropriations 

0 
580 000 
90 000 
0 

-577 850 

-670 000 

0 

0 

3.6   Use of the Global margin for commitments for heading 1a 

As already mentioned, in 2017, there is still EUR 174,1 million in the Global margin for commitments 
(GMC) after using EUR 1 265 million to finance EFSI. Therefore the Commission proposes to finance 
the proposed increases for COSME, CEF-Transport, Eramus+ and H2020 from the unused portion of 
the GMC and from the unallocated margin under heading 1a. 

4. 

PARTNERSHIP  FRAMEWORK  UNDER  THE  MIGRATION  AGENDA,  EXTERNAL  INVESTMENT 
PLAN, AND SECURITY 

4.1  

A quick start for the new Partnership Framework process with priority partners 

On  7  June  2016  the  Commission  presented  a  communication  on  establishing  a  new  Partnership 
Framework  with  third  countries  under  the  European  Agenda  on  Migration15,  which  builds  on  the 
Valletta  Action  Plan16  and  the  results  of  high-level  dialogues  on  migration  and  compacts17  with  a 
number  of  priority  partners,  which  will  require  additional  funding.  The  compacts  seek  to  present  a 
coordinated,  systematic  and  structured  approach  to  maximise  the  synergies  and  leverage  of  the 
Union’s internal and external policies, reflecting both the EU's interests and those of partner countries. 
Tailored for the priority countries, as each country package becomes operational it will also build on 
the special relationships that Member States have with third countries reflecting the political, historic 
and cultural ties fostered through decades of contacts. All available funding instruments and resources 
will be deployed in a more targeted, coordinated, flexible and rapid manner to achieve the short-term 
objectives of the compacts. 

Instrument 

In line with the June communication and in order to give a quick start to the delivery on the compacts 
especially  with  the  priority  partners,  the  Commission  proposes  to  reinforce  the  Development 
Cooperation 
(ENI)  by 
EUR 750 million in commitment and EUR 210 million in payment appropriations. Based on progress 
in  the  implementation  of  the  compacts,  part  of  this  reinforcement  may  be  channelled  through  the 
European Union Emergency Trust Fund for stability and addressing root causes of irregular migration 
and displaced persons in Africa (“Africa” trust fund) and the European Union Regional Trust Fund in 
response to the Syrian crisis (the “Madad” trust fund), for use in 2017 and beyond. 

the  European  Neighbourhood 

(DCI)  and 

Instrument 

Development Cooperation Instrument (DCI) 

To support the priority third countries in Asia and Sub-Saharan Africa, the Commission proposes to 
reinforce the budget item Migration and Asylum (21 02 07 05) with EUR 400 million in commitment 
and EUR 120 million in payment appropriations. 

15  
16  
17  

COM(2016) 385, 7.6.2016. 
http://www.consilium.europa.eu/en/meetings/international-summit/2015/11/11-12 
Tailor-made country packages to implement the new partnership framework. The short-term objective is to save 
lives in the Mediterranean, increase the rate of returns to countries of origin and transit, and enable migrants and 
refugees to stay close to home and avoid taking dangerous journeys. 

13 

 
 
  
 
 
                                                 
To adress specific issues in Asia and to support actions for economic opportunities and job creation, 
the Commission proposes to reinforce the budget article Cooperation with Asia (21 02 02) with EUR 
100 million in commitment and EUR 30 million in payment appropriations. 

European Neighbourhood Instrument (ENI) 

To  help  address  the  challenge  of  irregular  migration  and  forced  displacement,  including  through 
support to the implementation of the future compacts with countries of the Southern Neighbourhood, 
notably with Lebanon and Jordan, to strengthen the relationship with Tunisia and to contribute to the 
stabilisation  of  Libya,  it  is  proposed  to  reinforce  the  budget  item  Mediterranean  countries  – 
Confidence  building,  security  and  the  prevention  and  settlements  of  conflicts  (22 04 01 03)  with 
EUR 250 million in commitment and EUR 60 million in payment appropriations. 

Budget line 

Name 

22 04 01 03  Mediterranean countries – Confidence building, security and the prevention and 

settlements of conflicts 
21 02 07 05  Migration and asylum 
Cooperation with Asia 
21 02 02 
Total 

(in EUR) 

Commitment 
appropriations 
250 000 000 

Payment 
appropriations 
60 000 000 

400 000 000 
100 000 000 
750 000 000 

120 000 000 
30 000 000 
210 000 000 

4.2  

Endowment  of  the  new  European  Fund  for  Sustainable  Development  (EFSD) 
Guarantee Fund 

On 14 September 2016, the Commission presented  a draft Regulation of the European Parliament and 
of the Council on the European Fund for Sustainable Development (EFSD) and establishing the EFSD 
Guarantee and the EFSD Guarantee Fund18. The EFSD is part of the External Investment Plan (EIP), 
the long-term strategy to address the root causes of migration, as outlined in the Commission 
communications of 7 June 2016 and of 14 September 201619. The Commission proposes to endow the 
EFSD Guarantee Fund with EUR 750 million over the period 2017–2020, of which EUR 400 million 
from the European Development Fund (EDF) over the four years, EUR 100 million from the ENI over 
2017–2020, and EUR 250 million by mobilising the contingency margin in 2017. 

The present amending letter proposes the corresponding changes to the draft budget 2017, namely: 

  The necessary changes to the budgetary nomenclature by creating two new budget lines in order 
to  provision  the  EFSD  Guarantee  Fund  and  to  provide  the  guarantee  with  a  token  entry  (p.m.) 
from the EU budget, to provide for future need. 

  The  entry  of  EUR 275 million  on  the  new  provisioning  line  for  the  EFSD  Guarantee  Fund,  of 
which EUR 250 million to come from the contingency margin and EUR 25 million from the ENI 
(1/3 from an Eastern Neighbourhood budget line and 2/3 from a Southern Neighbourhood line as 
shown in the table below). 

Budget line 

Name 

01 03 07 

01 03 08 
22 04 01 02 

22 04 02 02 

the  European  Fund  for 

European  Union  guarantee  for 
Sustainable Development (EFSD) 
Provisioning of the EFSD Guarantee Fund 
Mediterranean  countries    Poverty  reduction  and  sustainable 
development 
Eastern  Partnership    Poverty  reduction  and  sustainable 
development 

Total 

18 
19  

COM(2016) 586 final, 14.9.2016. 
COM(2016) 581 final, 14.9.2016. 

14 

Commitment 
appropriations 
p.m. 

(in EUR) 

Payment 
appropriations 

p.m. 

275 000 000 
- 16 700 000 

275 000 000 
- 16 700 000 

- 8 300 000 

- 8 300 000 

250 000 000 

250 000 000 

 
 
  
 
 
 
                                                 
4.3   Mobilisation of the contingency margin for heading 4 

The DB 2017 exhausted the expenditure ceiling for commitments for heading 4  Global Europe and 
proposed the full mobilisation of the Flexibility Instrument (EUR 530 million) for heading 3 Security 
and Citizenship. Consequently, the mobilisation of the Contingency Margin in 2017 is the last resort 
instrument  available to  address  the additional  needs  described  above.  Taking  into  account the  small 
margin  of  EUR  13,8  million  created  by  the  proposed  transfer  of  the  financing  of  some  EU  Special 
Representatives  (EUSR)  from  heading  4  to  heading  3,  the  Commission  proposes  to  mobilise  the 
Contingency Margin for an amount of EUR 986,2 million to be offset in the period 2017-2019 against 
the margins of  heading 2 in 2017 and heading 5 in 2018-201920. 

4.4  

Reinforcing the Establishment Plan of Europol 

Under the European Agenda for Security, the European Counter Terrorism Centre (ECTC) in Europol 
plays  a  key  role  as  the  central  hub  in  the  fight  against  terrorism  in  the  EU,  contributing  to  a 
coordinated  reaction  against  the  ongoing  and  anticipated  terrorist  threat  and  attacks.  The  Centre 
supports  Member  States  by  providing  operational  and  analytical  support  for  investigations  into 
terrorist activities as well as cooperation with international partners. 

In the wake of the recent terrorist attacks in Europe, the level of information submitted to EUROPOL 
and  requests  for  support  from  Member  States  has  increased  steeply,  which  creates  a  significant 
additional  workload  in  the  agency.  The  DB 2017  already  included  25  additional  establishment  plan 
posts, 5 contract agents and 5 seconded national experts for this reason. 

Based  on  a  needs  assessment  carried  out  in  light  of  the  Commission  communication  on  Enhancing 
security in a world of mobility21, the Commission requests a further reinforcement of 20 establishment 
plan posts for the ECTC. The additional staff is requested to reinforce operational support, notably to 
provide a 24/7 service and on-the-spot deployment capabilities. 

The  related  additional  appropriations  for  the  remuneration  of  new  staff  (EUR 1 340 000)  have  been 
calculated on the basis of an average of six months' presence in 2017. The funding is proposed to be 
made available through a reprioritisation of actions under the Asylum, Migration and Integration Fund 
(AMIF)  which  were  planned  to  be  implemented  by  the  Commission  under  direct  management  in 
2017. The  Commission  will monitor  the funding needs for  these  actions throughout  the year, and it 
will propose corrective measures if necessary. 

Budget line 

Name 

18 03 01 01  Strengthening  and  developing  the  common  European  asylum 
system  and  enhancing  solidarity  and  responsibility-sharing 
between the Member States 

(in EUR) 

Commitment 
appropriations 

Payment 
appropriations 

-1 340 000 

-1 340 000 

18 02 04 

European Police Office (Europol) 

Total 

1 340 000 

1 340 000 

0 

0 

The updated establishment plan is set out in the budgetary annex. 

20  
21  

COM(2016) 678 final, 17.10.2016. 
COM(2016) 602, 14.9.2016. 

15 

 
 
  
 
 
 
 
                                                 
5. 

OTHER ADJUSTMENTS  

5.1.  

Adjustments to the Establishment Plans of Frontex and EASO 

The  DB 2017  contained  a  substantial  reinforcement  of  the  number  of  establishment  plan  posts  of 
Frontex (+130 posts, of which 50 proposed to be frontloaded in draft amending budget 4/201622) and 
EASO  (+64  posts),  so  as  to  enable  the  agencies  to  carry  out  their  extended  mandates  as  the  new 
European Border and Coast Guard Agency23 and the EU Agency for Asylum24. 

Awaiting a more detailed analysis of the job profiles required, in the draft budget the additional posts 
for both agencies were requested at the entry grades of the function groups for Administrators (AD 5) 
and Assistants (AST 3, in the case of EASO also AST 1). The needs assessment has confirmed that 
there should be more emphasis on recruiting experienced staff across the establishment plan, as well 
as the creation of new units in the new areas of activity under the extended mandates, which requires 
the recruitment of a number of staff to middle-management positions. 

This regrading of establishment plan posts for both Frontex and EASO in 2017 can be financed within 
the agencies' budgets for the year as proposed in the draft budget. Consequently, a reinforcement of 
the EU contribution to the agencies is not required. 

The updated establishment plans are set out in the budgetary annex. 

5.2.  

Adjustments to the establishment plans of EU-OSHA and EUROFOUND 

The  staff  reduction  target  for  the  European  agency  for  safety  and  health  at  work  (EU-OSHA)  in 
Bilbao translates into a reduction of one post in 2017, i.e. from 41 posts authorised in the 2016 budget 
to  40  posts  in  the  draft  budget  2017,  of  which  23  posts  were  proposed  in  the  function  group  for 
Administrators  and  17  posts  in  the  function  group  for  Assistants.  However,  taking  into  account  a 
current vacancy, the agency has now requested to reduce one post in the function group for Assistants, 
and to keep the number of posts in the function group for Administrators stable at the 2016 level. This 
has no impact on expenditure. 

The  staff  reduction  target  for  the  European  foundation  for  the  improvement  of  living  and  working 
conditions  (EUROFOUND)  in  Dublin  translates  into  a  reduction  of  two  posts  in  2017,  i.e.  from  95 
posts  authorised  in  the  2016  budget  to  93  posts  in  the  2017  draft  budget,  of  which  50  posts  were 
proposed in the function group for Administrators and 43 posts in the function group for Assistants. 
However, taking into account the planned reintegration of a temporary agent in the function group for 
Administrators,  the  agency  has  now  requested  to  swap  one  permanent  post  for  officials  for  one 
temporary  post  for  temporary  agents  within  the  function  group  for  Administrators.  This  keeps  the 
overall number of posts in the function group for Administrators stable at the level initially requested 
for 2017 (50). This has no impact on expenditure. 

The updated establishment plans are set out in the budgetary annex. 

22  
23  
24  

COM(2016) 624, 30.9.2016. 
COM(2015) 671, 15.12.2015. 
COM(2016) 271, 4.5.2016. 

16 

 
 
  
 
 
 
                                                 
5.3. 

Transfer  of  three  double-hatted  EUSRs  from  heading  4  (Section  III-  Commission)  to 
heading 5 (Section X- EEAS) 

There  are  currently  three  EU  Special  Representatives  (EUSRs),  in  Afghanistan,  Bosnia  and 
Herzegovina and in Kosovo25, who are "double-hatted" as Heads of EU Delegations (EU Office in the 
case  of  Kosovo).  Their  mandates,  which  currently  run  until  28  February  2017,  are  decided  by  the 
Council  on  a  proposal  of  the  High  Representative  of  the  Union  for  Foreign  Affairs  and  Security 
Policy,  and  their  costs  are  covered  under  the  budget  chapter  of  the  Common  Foreign  and  Security 
Policy (CFSP), part of heading 4. 

Before the creation of the European External Action Service (EEAS), the underlying argument for the 
double-hatted arrangement was to ensure that the EU representative had a political mandate and the 
expertise  necessary  to  carry  out  political  and  diplomatic  tasks,  as  such  tasks  could  not  be  entrusted 
directly to the Commission Delegations. 

In  the  post-Lisbon  context,  heads  of  EU  Delegations  worldwide  now  have  a  greatly  strengthened 
political mandate to represent the EU comprehensively in third countries. 
In the Conclusions on the EEAS review26 of 17 December 2013, the Council stressed with respect to 
the  EUSRs  "the  need  to  enhance  overall  efficiency  and  accountability,  as  well  as  to  ensure 
coordination and coherence with all other EU actors, emphasising the importance of close cooperation 
with the EEAS." At the same time, in the Decision27 on discharge in respect of the implementation of 
the general budget of the European Union for the financial year 2014, Section X – European External 
Action  Service,  the  European  Parliament  called  for  "steps  to  better  integrate  the  EU  Special 
Representatives more closely into the administrative structure and senior management of the EEAS in 
order to increase interaction and coordination, exploit synergies and ensure cost-effectiveness". 

The current administrative set-up of the double-hatted EUSR offices/EU Delegations is far from ideal. 
It is funded from two different EU budget headings, which leads to parallel administrative, financial 
and  logistical  circuits.  Although  mostly  working  hand-in-hand  with  the  colleagues  from  the  EU 
Delegations, the members of the EUSRs offices are not formally and administratively attached to the 
EEAS and the respective EU Delegation. 

Under  the  current  mandate  115  full-time  equivalent  (FTE)  staff  in  the  Offices  concerned  are 
authorised, with the following breakdown: 

Current mandate: authorised number of FTEs in the 3 double-hatted EUSR Offices 

Location 

Afghanistan 

Kosovo 

Bosnia 

Total 

International 
Contracted Staff 

Seconded 
national experts 

Local agents 

Total 

5 

13 

4 

22 

7 

5 

15 

27 

8 

21 

37 

66 

20 

39 

56 

115 

The  related  cost  charged  to  the  CFSP  budget  line  (19 03 01 07)  in  the  DB 2017  is  estimated  at 
EUR 13,8 million.  The  current  mandate  of  the  EUSRs  was  agreed  for  16  months  and  therefore  the 
appropriations in the table below are annualised. 

25  

26  

27  

This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion 
on the Kosovo Declaration of Independence. 
Council conclusions on the EEAS Review, GENERAL AFFAIRS Council meeting Brussels, 17 December 2013 
http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/EN/genaff/140141.pdf. 
European  Parliament  decision  of  28  April  2016  on  discharge  in  respect  of  the  implementation  of  the  general 
budget  of  the  European  Union  for  the  financial  year  2014,  Section  X  –  European  External  Action  Service 
(2015/2163(DEC)): 
http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+TA+P8-TA-2016-
0156+0+DOC+XML+V0//EN. 

17 

 
 
  
 
                                                 
Type of cost 

Afghanistan 

Kosovo 

Bosnia 

1 356 052 

1 803 931 

2 776 680 

225 000 

4 020 156 

22 500 

16 800 

78 242 

85 311 

425 366 

10 238 

8 400 

18 004 

Total 

5 936 663 

512 055 

201 744 

2 583 900 

7 029 422 

34 572 

12 000 

91 104 

67 310 

37 200 

187 350 

5 718 750 

2 351 250 

5 700 000 

13 770 000 

Personnel 

Missions 

Running expenditure 

Capital expenditure 

Representation 

Other 

Total 

The High Representative, in agreement with the Commission, proposes to transfer the current tasks of 
these  EUSR  offices  to  the  respective  EU  Delegation/Office,  thus  simplifying  and  streamlining  the 
administrative, financial and logistical circuits of EU Delegations. 

The staff concerned (contract agents, seconded national experts, and local staff) would be transferred 
from  the  current  CFSP  employment  regime  to  the  EEAS.  The  integration  and  the  resulting 
streamlining of procedures would give rise to synergies and allow for a reduction of around 15 % of 
the number of FTEs concerned (with corresponding savings in salary and office costs). The number of 
FTEs to be added to the EEAS' staff would be reduced to a total of 97 (compared to the current 115), 
distributed as follows:  

Location 

Contract Agents 

Seconded national 
experts 

Local agents 

Total 

Afghanistan 

Kosovo 

Bosnia 

Total 

4 

9 

3 

16 

6 

6 

13 

25 

7 

18 

31 

56 

17 

33 

47 

97 

It should be recalled that the staff regimes of the EUSRs and the EEAS are different. Therefore, the 
personnel  costs  have  been  recalculated  following  the  average  values  used  for  the  preparation  of  the 
EEAS  2017  Draft  Budget.  As  the  transfer  of  the  EUSRs  would  be  performed  at  the  end  of  current 
mandate (end of February 2017), the calculations are based on a 10 month period in 2017. 

Number of FTEs and appropriations to be transferred to the EEAS budget 

Staff category 

Contract agents 
Seconded National Experts 
Local agents 

Total 

*10-month basis 

Number of 
FTEs 

Direct salary costs 
and emoluments* 

Other related costs* 
(rents, security, missions, 
telecoms, etc.) 

16 
25 
56 

97 

1 685 000 
1 540 000 
1 960 000 

5 185 000 

4 891 000 

The corresponding reduction in CFSP should cover a 12 month period, since the yearly budgets of the 
EUSRs  are  committed  in  full  with  each  mandate  renewal.  Therefore,  the  present  amending  letter 
proposes  to  reduce  EUR 13,8 million  from  the  CFSP  budget  line  and  increase  the  EEAS  budget  by 
EUR 10,1 million, with a net reduction of EUR 3,7 million in expenditure in 2017. 

On  a  comparable  annual  basis,  the  proposed  transfer  will  allow  savings  of  18  FTEs  and 
EUR 1,7 million compared to the current situation. The effect on heading 5 is shown in  the table in 
section 5.2, below. 

18 

 
 
  
 
 
 
 
 
 
Section III – Commission (heading 4) 

Draft Budget 2017 

Amending Letter 
 No 1/2017 

Draft Budget 2017  
(incl. AL 1/2017) 

Budget line 

Commitments  

Payments  

Commitments  

Payments  

Commitments  

Payments  

19 03 01 07 

24 020 000 

26 861 438 

- 13 770 000 

- 13 770 000 

10 250 000 

13 091 438 

Section X – EEAS (heading 5) 

Draft Budget 2017 

Amending Letter 
 No 1/2017 

Draft Budget 2017  
(incl. AL 1/2017) 

Budget line 

Commitments  

Payments  

Commitments  

Payments  

Commitments  

Payments  

3 0 0 1 

3 0 0 2 

3 0 0 3 

3 0 0 4 

Total 

68 300 000  

68 300 000 

27 911 000 

27 911 000 

168 109 000 

168 109 000 

45 227 000 

45 227 000 

3 645 000 

1 980 000 

3 636 000 

815 000 

3 645 000 

71 945 000 

71 945 000 

1 980 000 

29 891 000 

29 891 000 

3 636 000 

171 745 000 

171 745 000 

815 000 

46 042 000 

46 042 000 

309 547 000 

309 547 000 

10 076 000 

10 076 000 

319 623 000 

319 623 000 

5.4. 

Remunerations and Pensions 

In accordance with articles 64 and 65 of the Staff Regulations, the remuneration of the officials  and 
other servants of the European Union is updated each year, in the light of a report presented by the 
Commission, based on statistical data prepared by Eurostat in agreement with the national statistical 
offices of the Member States, reflecting the situation in the Member States at 1 July. 

The  calculation  of  the  update  is  based  on  the  principle  of  parallelism  between  the  evolution  of  real 
(net  of  inflation)  remuneration  of  EU  officials  and  national  civil  servants  of  the  Member  States.  It 
reflects the combined effect of two main variables: 

  The annual evolution of real salaries of civil servants in the central governments of a sample of 11 

Member States representing more than 75 % of the Union GDP. 

  Annual  inflation  in  Brussels  and  Luxembourg  calculated  by  weighting  national  consumer  price 
inflation as measured by the Belgium HICP and Luxembourg CPI according to the distribution of 
EU staff serving in those Member States. 

The  forecast  rates  used  for  the  second  half  of  2016  and  for  the  draft  budget  2017  were  1,8 %  and 
2,1 %  respectively. As the report for  the current exercise approaches, it is  appropriate to review the 
situation, bearing in mind that any amending letter for the 2017 budget should be presented prior to 
the commencement of the conciliation process. 

Belgium's  yearly  inflation  rate,  based  on  the  European  harmonised  index  of  consumer  prices,  was 
1,8% in June, well above the EU average of 0,1 %. While this figure almost equals the current forecast 
rate, the latter should also take account of the effect on the purchasing power of EU officials due to 
the increases in real salaries of civil servants in Member States with a lower rate of inflation during 
the same period. 

On  the  basis  of  these  developments,  the  probability  of  a  salary  update  in  excess  of  that  used  to 
establish the budget 2016 and estimates for 2017 is significant. It is prudent to plan for the necessary 
budgetary appropriations to address an increase to the rate, of a similar magnitude to that recorded for 
the 2015 update i.e. +/-1,2 %. 

The budgetary consequences of this would be in the region of EUR 59,0 million for 2017, of which 
EUR 27,8 million for the Commission, and EUR 19,1 million for the pensions of all institutions. 

19 

 
 
  
 
 
 
 
 
It is therefore proposed to request the additional appropriations to cover the needs related to 2017 for 
the  salaries  and  pensions  of  all  institutions  in  this  amending  letter.  Since  the  timing  of  the  Eurostat 
report is clearly set out in Annex XI of the Staff Regulations, as end October, it would be too late to 
propose  an  amending  letter  after  the  rate  is  finalised.  Therefore,  the  current  proposal  indicates  the 
likely needs for all institutions, which can be updated as required on finalisation of the official report. 

The indicative breakdown by type of expenditure and institution would be as follows: 

Heading 5 

DB 2017 

AL 1/2017 

Transfer of 
EUSRs + change 
EESC & CoR 

Higher than 
estimated salary 
updated 2016 
[12 months] 

DB 2017  
(incl. AL 1/2017) 

Commission 

Other institutions 

European Parliament 

European Council and Council 

Court of Justice 

Court of Auditors 

European Economic and Social Committee 

Committee of the Regions 

European Ombudsman 

European data-protection Supervisor 

European External Action Service 

Administrative expenditure  

Pensions 

European schools 

Pensions and European schools  

Total   

Ceiling 

Sub-ceiling 

Of which offset against Contingency Margin 

Margin heading 5 

Sub-margin  

3 466,0 

3 899,1 

1 900,6 

559,5 

396,3 

140,2 

131,9 

92,0 

10,7 

11,2 

656,9 

7 365,2 

1 770,8 

185,8 

1 956,5 

9 321,7 

9 918,0 

8 007,0 

-514,4 

81,9 

127,5 

12,0 

1,2 

0,8 

10,1 

12,0 

0,0 

12,0 

27,8 

12,2 

0,0 

3,3 

3,1 

1,4 

0,7 

0,6 

0,0 

0,1 

3,0 

39,9 

19,1 

0,0 

19,1 

59,0 

-12,0 

-12,0 

-59,0 

-39,9 

3 493,8 

3 923,3 

1 900,6 

562,8 

399,3 

141,5 

133,8 

93,3 

10,7 

11,3 

670,1 

7 417,1 

1 789,9 

185,8 

1 975,6 

9 392,7 

9 918,0 

8 007,0 

-514,4 

10,9 

75,5 

5.5. 

Change in the establishment plans of the European Parliament, the European Economic 
and Social Committee and the Committee of the Regions 

In  2013  the  European  Parliament  (EP),  the  Economic  and  Social  Committee  (EESC)  and  the 
Committee of the Regions (CoR) signed a cooperation agreement with a view to reinforcing political 
and administrative cooperation, through which  the two Committees  would contribute to  building up 
the  EP  Members  Research  Service,  which  would  in  return  provide  products  and  services  free  of 
charge to the Committees. The cooperation agreement included a potential transfer of up to 80 posts 
from the Committees to the EP. 

Initially, 80 posts were created in the EP's establishment plan in 2014 in view of the implementation 
of the cooperation agreement, and thus far 60 posts (24 for the CoR and 36 for the EESC) have been 
removed from the establishment plans of these institutions. 

In  order  to  ensure  full  compliance  with  the  principle  of  budget  neutrality  of  the  agreement,  the 
Commission integrated a revised Statement of Estimates for the EESC and the CoR in the draft budget 
2017,  reducing  the  establishment  plan  of  the  EESC  by  12  posts  together  with  the  corresponding 
appropriations (- EUR 1,2 million) and that of the CoR by 8 posts (-EUR 0,8 million). The effect on 
heading 5 is shown in the table in section 5.2, above. 

20 

 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
However,  since  the  adoption  of  DB2017,  the  three  Institutions  concerned  have  come  to  a  common 
understanding  that  the  transfers  can  be  considered  as  fully  finalised.  Therefore,  the  Commission 
proposes, in line with the agreement between the EP, the EESC and the CoR, that the 20 additional 
posts  be  removed  from  the  EP's  establishment  plan  in  the  2017  draft  budget,  while  restoring  a 
corresponding number of posts in the respective establishment plans of the two Committees, together 
with the related appropriations. 

Given that the 20 extra posts allocated to the European Parliament remained blocked and unused since 
2014,  the  proposed  adaptation  to  the  establishment  plan  has  no  impact  on  the  request  for 
appropriations for the EP in section I of the EU budget. 

As  this  is  a  zero-sum  operation  between  Institutions,  it  has  no  impact  on  their  respective  5 %  staff 
reduction targets. 

6. 

INCREASE OF THE REVENUE LINKED TO FINES 

Some fines decided by the Commission recently will be paid and all legal remedies will be exhausted 
at the end of 2016 for an estimated amount of EUR 1 billion. The Commission proposes to increase 
the relevant budget items in the revenue part of the budget by this amount. This will reduce the GNI 
contribution requested from the national budgets by the same amount. 

21 

 
 
  
 
7. 

SUMMARY TABLE BY MFF HEADING 

Financial framework 
Heading/sub-heading 

Draft Budget 2017 

Draft Amending Letter No 1 

In EUR 

Draft Budget 2017  
(incl. AL1/2017) 

CA 

PA 

CA 

PA 

CA 

PA 

1. Smart and inclusive growth 

74 682 751 585 

56 646 663 545 

 200 000 000 

 6 890 000 

74 882 751 585 

56 653 553 545 

Of which under global margin for comitments 

1 265 000 000 

 174 100 000 

Ceiling 

Margin 

73 512 000 000 

 94 248 415 

1 439 100 000 

73 512 000 000 

 68 348 415 

1a. Competitiveness for growth and jobs 

21 108 952 950 

19 297 994 503 

 200 000 000 

 6 890 000 

21 308 952 950 

19 304 884 503 

Of which under global margin for commitments 

1 265 000 000 

 174 100 000 

Ceiling 

Margin 

19 925 000 000 

 81 047 050 

1 439 100 000 

19 925 000 000 

 55 147 050 

1b. Economic, social and territorial cohesion 

53 573 798 635 

37 348 669 042 

53 573 798 635 

37 348 669 042 

Ceiling 

Margin 

53 587 000 000 

 13 201 365 

53 587 000 000 

 13 201 365 

2. Sustainable growth: natural resources 

58 901 743 884 

55 236 239 537 

- 1 020 000 

58 901 743 884 

55 235 219 537 

Ceiling 

60 191 000 000 

Of which offset against Contingency Margin 

- 650 000 000 

- 200 000 000 

Margin 

 639 256 116 

60 191 000 000 

- 850 000 000 

 439 256 116 

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

42 937 572 079 

42 888 987 974 

- 1 020 000 

42 937 572 079 

42 887 967 974 

Rounding difference excluded from margin calculation 

  318 000 

EAGF Margin 

1 208 109 921 

Sub-ceiling 

44 146 000 000 

44 146 000 000 

  318 000 

1 208 109 921 

3. SECURITY AND CITIZENSHIP 

4 272 380 960 

3 781 908 287 

4 272 380 960 

3 781 908 287 

Of which under Flexibility Instrument 

 530 000 000 

Of which under Contingency Margin 

1 164 380 960 

Ceiling 

Margin 

2 578 000 000 

 530 000 000 

1 164 380 960 

2 578 000 000 

4. GLOBAL EUROPE 

9 432 000 000 

9 289 727 178 

 986 230 000 

 446 230 000 

10 418 230 000 

9 735 957 178 

Of which under Contingency Margin 

 986 230 000 

Ceiling 

Margin 

9 432 000 000 

 986 230 000 

9 432 000 000 

5. ADMINISTRATION 

9 321 692 016 

9 324 103 016 

 71 010 800 

 71 010 800 

9 392 702 816 

9 395 113 816 

Ceiling 

9 918 000 000 

Of which offset against Contingency Margin 

- 514 380 960 

Margin 

 81 927 024 

9 918 000 000 

- 514 380 960 

 10 916 224 

Of Which: Pensions and European Schools 

1 956 535 156 

7 367 567 860 

 19 076 000 

 19 076 000 

1 975 611 156 

7 386 643 860 

Of Which: Administrative expenditure of the 
institutions 

7 365 156 860 

7 367 567 860 

 51 934 800 

 51 934 800 

7 417 091 660 

7 419 502 660 

Of which offset against Contingency Margin 

- 514 380 960 

Ceiling 

8 007 000 000 

Margin 

 127 462 180 

8 007 000 000 

- 514 380 960 

 75 527 380 

TOTAL APPROPRIATIONS FOR HEADINGS 

Appropriations as% of GNI 

156 610 568 445 
1,04% 

134 278 641 563 
0,89% 

1 257 240 800 

 523 110 800 

Of which under Flexibility Instrument 

 530 000 000 

 981 093 985 

157 867 809 245 
1,05% 

134 801 752 363 
0,90% 

 530 000 000 

 981 093 985 

Of which under global margin for commitments 

1 265 000 000 

Of which under Contingency Margin 

1 164 380 960 

 174 100 000 

 986 230 000 

1 439 100 000 

2 150 610 960 

Of offset against Contingency Margin 

-1 164 380 960 

- 200 000 000 

-1 364 380 960 

Ceiling 

155 631 000 000 

142 906 000 000 

155 631 000 000 

142 906 000 000 

Margin 

 815 431 555 

9 608 452 422 

- 296 910 800 

- 523 110 800 

 518 520 755 

9 085 341 622 

Other special instruments 

1 046 924 000 

 620 000 000 

TOTAL APPROPRIATIONS 

Appropriations as% of GNI 

157 657 492 445 
1,05% 

134 898 641 563 
0,90% 

1 257 240 800 

 523 110 800 

1 046 924 000 

 620 000 000 

158 914 733 245 
1,06% 

135 421 752 363 
0,90% 

22