DRAFT AMENDING BUDGET No 3 TO THE GENERAL BUDGET 2017 Increasing the budgetary resources of the Youth Employment Initiative (YEI) to pursue the reduction of youth unemployment across the European Union and updating the staff establishment plans of the decentralised agency ACER and the joint undertaking SESAR2
Date: 2017-05-30
Institutions: Directorate-General for Budget, European Commission
Subjects: EU expenditure, European Joint Undertaking, European Union Agency for the Cooperation of Energy Regulators, air traffic control, amending budget, draft budget (EU), financial year, general budget (EU), youth employment

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 30.5.2017 COM(2017) 288 final   DRAFT AMENDING BUDGET No 3 TO THE GENERAL BUDGET 2017 Increasing the budgetary resources of the Youth Employment Initiative (YEI) to pursue the reduction of youth unemployment across the European Union and updating the staff establishment plans of the decentralised agency ACER and the joint undertaking SESAR2  
 
 
Having regard to: 

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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 general budget of the European Union for the financial year 2017, as adopted on 
1 December 20162, 
the amending budget No 1/20173, adopted on 5 April 2017, 
the draft amending budget No 2/20174, adopted on 12 April 2017, 

The European Commission hereby presents draft amending budget No 3 to the 2017 budget to 
the European Parliament and to the Council. 

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. 

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OJ L 298, 26.10.2012, p. 1. 
OJ L 51, 28.2.2017. 
OJ L XXX, XX.XX.XXX. 
COM(2017) 188 final. 

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TABLE OF CONTENTS 

1. 

2. 

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

REINFORCEMENT OF THE YOUTH EMPLOYMENT INITIATIVE (YEI) .............................. 4 

2.1   CONTEXT OF THE REINFORCEMENT ........................................................................................................ 4 
2.2   FINANCING ............................................................................................................................................... 5 

3. 
UPDATE OF THE STAFF ESTABLISHMENT PLANS OF THE DECENTRALISED AGENCY 
ACER AND THE JOINT UNDERTAKING SESAR2 ...................................................................................... 5 

3.1   AGENCY FOR THE COOPERATION OF ENERGY REGULATORS (ACER) ................................................. 5 
3.2   SINGLE EUROPEAN SKY AIR TRAFFIC MANAGEMENT RESEARCH (SESAR2) ...................................... 5 

4. 

SUMMARY TABLE BY MFF HEADING ........................................................................................... 6 

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1. 

INTRODUCTION 

The purpose of Draft Amending Budget (DAB) No 3 for the year 2017 is twofold: 

-  The provision of EUR 500 million of additional commitment appropriations to the Youth 
Employment  Initiative  (YEI)  as  agreed  by  the  European  Parliament  and  the  Council  in 
their  agreement  on  the  budget  2017.  No  reinforcement  in  payment  appropriations  is 
proposed. 

-  An amendment of the establishment plans of the decentralised agency ACER and the joint 
undertaking  SESAR2,  without  incurring  any  changes  to  the  overall  budget  or  the  total 
number of posts. 

2. 

REINFORCEMENT OF THE YOUTH EMPLOYMENT INITIATIVE (YEI) 

2.1  

Context of the reinforcement 

The creation of the Youth Employment Initiative (YEI) was agreed in 2013 as a response to the 
exceptionally  high  youth  unemployment  levels  across  the  EU  with  a  dedicated  allocation  of 
EUR 3,2 billion5  in  current  prices  to  provide  direct  targeted  support  to  young  people  not  in 
employment, education, or training residing in regions with youth unemployment rates higher than 
25%  in  2012.  In  order  to  speed  up  implementation,  the  full  allocation  in  terms  of  commitments 
under the 2014-20 period was frontloaded to 2014 and 2015. 
Despite initial delays, the structures for implementing the YEI are now in place. First evaluations6 
point  to  significantly  improved  opportunities  for  young  people  who  received  support  from  the 
initiative in finding employment or continuing their studies afterwards.  

Youth unemployment rates have decreased in most Member States in comparison to the reference 
year  of  2012  but  they  are  still  above  2008  (pre  financial  crisis)  levels.  This  situation  calls  for 
continued efforts and support at EU level which is why the European Parliament and the Council 
in their agreement on the budget 20177 invited "the Commission to propose an amending budget in 
2017 in order to provide EUR 500 million for the YEI in 2017 financed by the Global Margin for 
Commitments, as soon as the technical adjustment foreseen in article 6 of the MFF Regulation8 is 
adopted." 
The  technical  adjustement  having  now  been  adopted9,  the  Commission  proposes  to  amend  the 
budget 2017 to reflect the above-mentioned agreement of the European Parliament and Council.   

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Matched by EUR 3,2 billion from the European Social Fund. 
Communication  from  the  Commission  to  the  European  Parliament,  the  European  Council,  the  Council,  the 
European  economic  and  social  committee  and  the  Committee  of  the  Regions  "The  Youth  Guarantee  and 
Youth Employment Initiative three years on" COM(2016) 646 final, 8.10.2016. 
European Parliament legislative resolution of 1 December 2016 on the joint text on the draft general budget 
of  the  European  Union  for  the  financial  year  2017  approved  by  the  Conciliation  Committee  under  the 
budgetary procedure (14635/2016 – C8-0470/2016 – 2016/2047(BUD)). 
Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial 
framework for the years 2014-2020. 
COM(2017) 220 final, 24.5.2017. 

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2.2  

Financing 

In line with Article 14 of the MFF Regulation, the reinforcement in commitment appropriations of 
the YEI will be financed from the Global Margin for Commitments (GMC).  

The Commission considers that this reinforcement will not translate into additional payment needs 
in  2017.  Before  any  payments  on  the  reinforcement  can  be  made,  all  relevant  operational 
programmes have to be amended. This process is expected to be completed in the second half of 
2017, which is after the legal deadline for paying the 2017 annual pre-financing as stipulated in the 
Common  Provisions  Regulation  (EU)  No  1303/201310.  Furthermore,  it  is  not  expected  that  the 
additional commitments will translate into interim payment claims being submitted in 2017. 

3. 

UPDATE OF THE STAFF ESTABLISHMENT PLANS OF THE DECENTRALISED AGENCY ACER 
AND THE JOINT UNDERTAKING SESAR2 

3.1  

Agency for the Cooperation of Energy Regulators (ACER) 

Taking  into  account  the  rules  on  the  establishment  plans  for  staff  set  out  in  Article  50  of  the 
Financial Regulation11, it is proposed to amend the 2017 establishment plan of the Agency for the 
Cooperation  of  Energy  Regulators  (ACER),  while  the  total  number  of  posts  will  remain 
unchanged.  This  amendment  is  necessary  to  fulfil  the  requirements  for  the  2017  reclassification 
exercise  in  ACER,  where  a  misalignment  has  occurred  between  the  establishment  plan  and  the 
necessary  grades.  This  can  be  financed  within  ACER's  budget  for  this  year.  Consequently,  a 
reinforcement of the EU contribution to the agency is not required. 

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

3.2  

Single European Sky Air Traffic Management Research (SESAR2) 

The Single European Sky Air Traffic Management (ATM) Research Joint Undertaking (SESAR2) 
is  the  Union’s  ATM  modernisation  project  and  a  key  component  of  the  Single  European  Sky 
policy  and  of  the  Aviation  Strategy  for  Europe.  The  proposed  amendment  of  the  2017 
establishment  plan  of  SESAR2  is  necessary  in  order  to  allow  for  the  reclassification  of  its 
Executive  Director  (from  AD14  to  AD15)  upon  mandate  renewal  (1  April  2017)  following  the 
favourable evaluation by the Administrative Board of the Joint Undertaking and the Commission. 
Moreover,  a  misalignment  has  occurred  between  the  establishment  plan  of  SESAR2  and  the 
grades. 

The overall budget  and the total  number of posts remains unchanged. The reclassification of the 
AD15  post  is    ad  personam  and  will  expire  at  the  end  of  the  mandate  of  the  current  Executive 
Director. 

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

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11  

OJ L 347, 20.12.2013, p.320. In accordance with Article 134 (2), annual pre-financing shall be paid before 1 
July of the corresponding year. 
OJ L 362, 31.12.2012. 

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4. 

SUMMARY TABLE BY MFF HEADING 

Heading 

Budget 2017 

(incl. AB 1 & DAB 2/2017) 

Draft Amending Budget 3/2017 

Budget 2017 

(incl. AB 1, DAB 2&3/2017) 

CA 

PA 

CA 

PA 

CA 

PA 

1. 

Smart and inclusive growth 

74 898 754 456 

56 521 763 545 

 500 000 000 

75 398 754 456 

56 521 763 545 

Of which under global margin for commitments 

1 439 100 000 

 500 000 000 

Ceiling  

Margin 

73 512 000 000 

 52 345 544 

1 939 100 000 

73 512 000 000 

 52 345 544 

1a 

Competitiveness for growth and jobs 

21 312 155 821 

19 320 944 503 

21 312 155 821 

19 320 944 503 

Of which under global margin for commitments 

1 439 100 000 

Ceiling 

Margin 

19 925 000 000 

 51 944 179 

1 439 100 000 

19 925 000 000 

 51 944 179 

1b   Economic  social and territorial cohesion 

53 586 598 635 

37 200 819 042 

 500 000 000 

54 086 598 635 

37 200 819 042 

Of which under global margin for commitments 

 500 000 000 

Ceiling 

Margin 

53 587 000 000 

  401 365 

 500 000 000 

53 587 000 000 

  401 365 

2. 

Sustainable growth: natural resources 

58 584 443 884 

54 913 969 537 

58 584 443 884 

54 913 969 537 

Of which offset against Contingency margin 

- 575 000 000 

Ceiling 

60 191 000 000 

Margin 

1 031 556 116 

60 191 000 000 

- 575 000 000 

1 031 556 116 

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

42 612 572 079 

42 562 967 974 

42 612 572 079 

42 562 967 974 

Sub-ceiling 

44 146 000 000 

Net transfer between EAGF and EAFRD 

  318 000 

EAGF Margin 

1 533 109 921 

44 146 000 000 

  318 000 

1 533 109 921 

3. 

Security and citizenship 

4 284 030 960 

3 786 957 287 

4 284 030 960 

3 786 957 287 

Of which under Flexibility Instrument 

 530 000 000 

Of which under Contingency margin 

1 176 030 960 

Ceiling 

Margin 

2 578 000 000 

 530 000 000 

1 176 030 960 

2 578 000 000 

4.  Global Europe 

10 162 120 000 

9 483 081 178 

10 162 120 000 

9 483 081 178 

Of which under Contingency margin 

 730 120 000 

Ceiling 

Margin 

9 432 000 000 

 730 120 000 

9 432 000 000 

5. 

Administration 

9 394 513 816 

9 394 599 816 

9 394 513 816 

9 394 599 816 

Ceiling 

9 918 000 000 

Of which offset against Contingency margin 

- 507 268 804 

Margin 

 16 217 380 

9 918 000 000 

- 507 268 804 

 16 217 380 

Of which: Administrative expenditure of the 
institutions 

7 418 902 660 

7 418 988 660 

7 418 902 660 

7 418 988 660 

Of which offset against Contingency margin 

- 507 268 804 

Sub-ceiling 

8 007 000 000 

Margin 

 80 828 536 

8 007 000 000 

- 507 268 804 

 80 828 536 

Negative reserve 

- 70 402 434 

- 70 402 434 

Of which under Flexibility Instrument 

 530 000 000 

 981 093 985 

 530 000 000 

 981 093 985 

Total 

157 323 863 116 

134 029 968 929 

 500 000 000 

157 823 863 116 

134 029 968 929 

Of which under global margin for commitments 

1 439 100 000 

 500 000 000 

Of which under Contingency margin 

1 906 150 960 

1 939 100 000 

1 906 150 960 

Ceiling 

155 631 000 000 

142 906 000 000 

155 631 000 000 

142 906 000 000 

Of which offset against Contingency margin 

-1 082 268 804 

Other special Instruments 

 604 326 434 

 460 402 434 

Margin 

1 100 119 040 

9 857 125 056 

-1 082 268 804 

1 100 119 040 

9 857 125 056 

 604 326 434 

 460 402 434 

Grand Total 

157 928 189 550 

134 490 371 363 

 500 000 000 

158 428 189 550 

134 490 371 363 

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