AMENDING LETTER No 1 TO THE DRAFT GENERAL BUDGET 2018 Updating the estimated needs for agricultural expenditure and other adjustments (reserve for the European Union Solidarity Fund, agencies and administrative expenditure)
Date: 2017-10-16
Institutions: Directorate-General for Budget, European Commission
Subjects: EU office or agency, administrative expenditure (EU), agricultural expenditure, amending budget, commitment of expenditure, draft budget (EU), financial year, fund (EU), general budget (EU)

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 16.10.2017 COM(2017) 615 final   AMENDING LETTER No 1 TO THE DRAFT GENERAL BUDGET 2018 Updating the estimated needs for agricultural expenditure and other adjustments (reserve for the European Union Solidarity Fund, agencies and administrative expenditure)  
 
 
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 39 thereof, 

the  draft  general  budget  of  the  European  Union  for  the  financial  year  2018,  as 
adopted by the Commission on 18 July 20172, 

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 2018 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(2017) 400, 29.6.2017. 

2 

 
 
  
 
                                                 
TABLE OF CONTENTS 

1. 

2. 

3. 

4. 

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

EUROPEAN AGRICULTURE GUARANTEE FUND (EAGF) ........................................................ 4 

2.1   OVERVIEW ................................................................................................................................................ 4 
2.2   DETAILED COMMENTS ............................................................................................................................. 5 
2.3   COMBINED EFFECT ON DB 2018 .............................................................................................................. 7 

EUROPEAN UNION SOLIDARITY FUND (EUSF) .......................................................................... 8 

AGENCIES .............................................................................................................................................. 8 

4.1   EUROPEAN SECURITIES AND MARKETS AUTHORITY (ESMA) .............................................................. 8 
4.2  EUROPEAN FOUNDATION FOR THE IMPROVEMENT OF LIVING AND WORKING CONDITIONS 

(EUROFOUND) ...................................................................................................................................... 9 
4.3   EDUCATION, AUDIOVISUAL AND CULTURE EXECUTIVE AGENCY (EACEA) ...................................... 10 

5. 

ADMINISTRATION ............................................................................................................................ 10 

5.1   EUROPEAN ANTI-FRAUD OFFICE (OLAF) ............................................................................................... 10 
5.2   PUBLICATIONS OFFICE (OP) .................................................................................................................... 10 
5.3  EUROPEAN EXTERNAL ACTION SERVICE (EEAS) .................................................................................... 11 

5.3.1  

5.3.2 

5.3.3 
5.3.4 

 EU's future engagement with Afghanistan following the end of mandate of the double-hatted 
EUSR Afghanistan ....................................................................................................................... 11 
 Transition of certain Monitoring, Mentoring and Advising (MMA) tasks from EULEX Kosovo to 
the EU Office in Kosovo .............................................................................................................. 12 
 Separate budget line for the contribution to European Schools ................................................... 12 
 Combined effect on DB2018 ........................................................................................................ 13 

6. 

SUMMARY TABLE BY MFF HEADING ......................................................................................... 14 

3 

 
 
 
 
1. 

INTRODUCTION 

This Amending Letter No 1 to the draft budget for the year 2018 (AL 1/2018) covers the following: 

  The  updating  of  the  estimated  needs,  assigned  revenue  and  appropriations  for  agricultural 
expenditure.  In  addition  to  changing  market  factors,  AL 1/2018  also  incorporates  the  impact  of 
decisions in the agricultural sector since the DB 2018 was presented in May 2017, as well as other 
proposals expected to have a significant effect during the budget year. Overall, the impact on the 
European  Agriculture  and  Guarantee  Fund  (EAGF)  is  relatively  limited  with  a  decrease  of 
commitment and payment appropriations by EUR 53,9 million. 

  The  decrease  of  the  appropriations  entered  in  reserve  for  the  European  Union  Solidarity  Fund 
(EUSF) to take account of the frontloading recently decided by the European Parliament and the 
Council in the EUSF mobilisation decision for Italy following series of earthquakes that took place 
between August 2016 and January 2017 in the regions of Abruzzo, Lazio, Marche and Umbria. 

  The  updating  of  the  levels  of  appropriations  and  establishment  plans  of  the  European  Securities 

and Markets Authority (ESMA) further to the latest proposal tabled by the Commission.  

  The  adjustment  of  the  establishment  plan  of  the  European  foundation  for  the  improvement  of 

living and working conditions (EUROFOUND). 

  The  creation  of  the  budget  structure  for  the  operating  costs  that  the  Education,  Audiovisual  and 
Culture Executive Agency (EACEA) will incur in implementing the proposed European Solidarity 
Corps. 

  The adjustment of some administrative expenditure. 

2. 

EUROPEAN AGRICULTURE GUARANTEE FUND (EAGF) 

The Commission proposes  to  update  the expenditure estimates for agriculture by  -EUR 53,9 million 
compared  to  DB 2018.  It  is  proposed  to  budget  appropriations  for  agricultural  expenditure  financed 
under  the  European  Agriculture  Guarantee  Fund  (EAGF)  in  AL 1/2018  at  EUR 43 464,4 million, 
which  is  below  the  2018  net  balance  available  for  EAGF  expenditure  ('net  sub-ceiling')  of 
EUR 44 162,4 million3.  Despite  a  net  increase  of  the  EAGF  needs  by  EUR 188,1 million,  EAGF 
appropriations compared to DB 2018 can be reduced as this increase is more than compensated by the 
additional revenue assigned to the EAGF (+EUR 242,0 million). 

Thus,  overall  commitment  appropriations  requested  for  heading 2  in  DB 2018  including  AL 1/2018 
are  estimated  at  EUR 59 499,6 million.  This  leaves  a  margin  of  EUR 767,4 million  in  commitment 
appropriations  below  the  corresponding  MFF  ceiling.  Heading  2  payment  appropriations  amount  to 
EUR 56 305,9 after being being decreased by the same amount  (-EUR 53,9 million) as  commitment 
appropriations compared to DB 2018. 

2.1  

Overview 

The purpose of AL 1/2018 is to update estimates for agricultural expenditure based on the most up-to-
date  economic  data  and  legislative  framework.  By  late  September  2017,  the  Commission  has  at  its 
disposal a first indication of the level of production for 2017 and outlook for the agricultural markets, 
which are the basis for the updated estimates of the budgetary needs for 2018.  

3  

Under the 2014-2020 MFF, the initial EAGF sub-ceiling for 2018 amounted to EUR 44 889 million. After taking 
into  account  a  net  amount  of  EUR 726,7 million  to  be  transferred  to  Rural  Development,  the  2018  net  balance 
available for EAGF expenditure (‘net sub-ceiling’) amounts to EUR 44 162,4 million. The EAGF needs for 2018 
are assessed against this EAGF ‘net sub-ceiling’. 

4 

 
  
 
 
 
                                                 
Apart  from  taking  into  account  market  factors,  this  AL 1/2018  also  incorporates  the  impact  of 
legislative decisions in the agricultural sector since the DB 2018 was drawn up in May 2017, as well 
as for some that are still under preparation, but to be adopted soon.  

Overall,  2018  EAGF  needs  (after  taking  into  account  EAGF  provisions  related  to  'financial 
discipline') are now estimated at EUR 44 710,4 million4, which is an increase by EUR 188,1 million 
compared  to  the  DB 2018.  This  increase  is  mostly  due  to  additional  expenditure  for  exceptional 
support measures in the fruit and vegetables sector, and the pigmeat and poultry sectors as well as to 
interest payments related to a Court of Justice ruling on the former sugar production levies. There are, 
in  addition,  some  small  variations  for  mainstream  market  measures  and  for  expenditure  related  to 
accounting and conformity clearance decisions under chapter 05 07 Audit of agricultural expenditure 
financed  by  the  European  Agricultural  Guarantee  Fund  (EAGF),  which  are  also  incorporated  into 
AL 1/2018.  The  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 2018. 

The amount of assigned revenue expected to be available in 2018 increases from EUR 1 004 million 
in DB 2018 to EUR 1 246 million (+EUR 242 million), fully compensating the additional needs. The 
update  of  estimates  concerns  the  amounts  originating  from  clearance  of  accounts  decisions 
(+EUR 104,9 million)  and  irregularities  (-EUR 13 million).  Furthermore,  AL 1/2018  incorporates  an 
expected  carry-over  of  assigned  revenue  from  2017  to  2018  for  an  amount  of  EUR 400,1 million 
(expected  EAGF  'surplus')5,  of  which  an  amount  of  EUR 250 million  was  already  included  in 
DB 2018.  The  estimated  surplus  does  not  include  unused  appropriations  (EUR 450,5 million)  of  the 
2017  agricultural  crisis  reserve,  which  will  not  be  called  on.  These  unused  appropriations  will  be 
carried over for reimbursement to farmers subject to the financial discipline in 2018. 

As  a  result  of  these  updates,  commitment  appropriations  of  EUR 43 464,4 million,  which  includes 
EUR 459,5 million for the Reserve for crises in the agricultural sector, are required to cover EAGF 
needs 
the  EAGF  net  sub-ceiling  of 
EUR 44 162,4 million.  This  means  that  the  financial  discipline  mechanism  will  only  be  applied  to 
establish the agricultural crisis reserve for budget year 20186. 

for  2018.  This  overall  amount 

remains  below 

2.2  

Detailed comments 

05 02  Improving  competitiveness  of  the  agricultural  sector  through  interventions  in 
agricultural markets (appropriations +EUR 81,8 million) 

Interventions in agricultural markets 

Draft Budget 2018 

(in million EUR, rounded figures at current prices) 

Amending Letter 
 No 1/2018 

Draft Budget 2018  
(incl. AL 1/2018) 

Needs 

-Estimated assigned revenue available in 2017 

Appropriations requested 

2 676,3 

400,0 

2 276,3 

+81,8 

+0,0 

+81,8 

2 758,1 

400,0 

2 358,1 

Overall,  the  needs  for  intervention  measures  on  agricultural  markets  increase  by  EUR 81,8 million 
compared to the DB 2018. The appropriations requested in AL 1/2018 increase by the same amount, 
because  the  assigned  revenue  expected  to  be  available  for  chapter  05 02  (amounting  to 
EUR 400,0 million) remains unchanged compared to the DB 2018. 

4  

5  

6  

The needs amount corresponds to EUR 43 464,4 million fresh appropriations plus EUR 1 246,0 million assigned 
revenue. 
This estimate is based on the declarations of actual expenditure received from Member States up to the month of 
August 2017, complemented by forecasts for the period 01.09.2017 to 15.10.2017. Full information on the actual 
expenditure for this remaining period will become available at the end of October/beginning of November 2017.  
The adjustment rate for direct payments related to the financial discipline mechanism in respect of the calendar 
year 2017 is set in Commission Implementing Regulation (EU) 2017/1236. In view of the minor modifications 
for direct payments proposed in this AL 1/2018, the adaptation of the rate already fixed is not required. 

5 

 
  
 
                                                 
For  fruit  and  vegetables,  the  proposed  increase  by  EUR 12,8 million  reflects  the  additional 
expenditure  estimated  for  the  recent  amendment  to  the  exceptional  withdrawal  measures  as  regards 
peaches and nectarines.7  

Appropriations  for  the  wine  sector  on  budget  item  05 02 09 08  financing  the  national  support 
programmes  are  proposed  to  be  increased  by  EUR 7,0 million,  reflecting  the  most  recent 
implementation figures. 

Appropriations  for  the  dairy  sector  (budget  article  05 02 12)  increase  by  EUR 2,0 million  due  to 
updated  estimates  for  storage  costs  related  to  skimmed  milk  powder  for  which  larger  than  initially 
estimated quantities are still in public intervention stocks.  

The  largest  modification  proposed  in  AL 1/2018  for  market  measures  concerns  the  pigmeat  and 
poultry  sectors  (budget  article  05 02 15)  with  an  increase  of  EUR 60,0 million,  relating  to  specific 
exceptional measures to farmers following outbreaks of African swine fever8 and avian influenza. 

05 03  Direct  payments  aimed  at  contributing  to  farm  incomes,  limiting  farm  income 
variability and meeting environment and climate objectives (appropriations - EUR 244,5 million) 

Direct payments 

Draft Budget 2018 

(in million EUR, rounded figures at current prices) 

Amending Letter 
 No 1/2018 

Draft Budget 2018  
(incl. AL 1/2018) 

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

Needs 

- Estimated assigned revenue available in 2017 

Appropriations requested 

41 747,1 

604,0 

41 143,1 

-2,5 

+242,0 

-244,5 

41 744,6 

846,0 

40 898,6 

Compared  to  DB 2018,  appropriations  requested  for  chapter  05 03  are  revised  downwards  by 
EUR 244,5 million.  This  change  is  mostly  due  to  the  higher  amount  of  revenue  assigned 
(+EUR 242,0 million) to item 05 03 01 10 Basic payment scheme (BPS). Overall, based on the most 
recent data on implementation, only a minor change of needs (-EUR 2,5 million) for direct payments 
is proposed. There are some variations between budget items for direct payments, reflecting updated 
information on implementation choices made by Member States. The most important of these in the 
AL 1/2018  concerns  the  'greening'  payment  (+EUR 95,0 million  on  item  05 03 01 11),  the  payment 
for  young  farmers  (+EUR 34,0 million  on 
the  redistributive  payment 
(+EUR 14,0 million on item 05 03 01 07) and the small farmers scheme (-EUR 110,0 million on item 
05 03 02 61).  

item  05 03 01 13), 

Other  agricultural  expenditure  financed  by  the  European  Agricultural  Guarantee  Fund 
(EAGF) (appropriations +EUR 108,8 million) 

Appropriations  for  budget  items  05 07 01 06  Financial  corrections  in  favour  of  Member  States 
following accounting clearance decisions and 05 07 01 07 Financial corrections in favour of Member 
States following conformity clearance decisions need to be increased by respectively EUR 1,4 million 
and EUR 5,2 million reflecting the financial impact of Commission Decisions amending the financial 
corrections for previous years. Appropriations for budget article 05 07 02 Settlement of disputes need 
to  be  increased  by  EUR 102,2 million  as  a  consequence  of  a  further  Court  of  Justice  ruling  on  the 
former sugar production levies.  

7  

8  

Commission Delegated Regulation (EU) 2017/1533 of 8 September 2017 amending Delegated Regulation (EU) 
2017/1165  as  regards  the  temporary  exceptional  support  measures  for  producers  of  peaches  and  nectarines  in 
Greece, Spain and Italy. 
Commission Implementing Regulation (EU) 2017/1536 of 11 September 2017 on an emergency measure in the 
form of aid to holdings with no more than 50 animals of the porcine species located in certain areas of Poland 
when ceasing pigmeat production due to new requirements in relation to African swine fever. 

6 

 
  
 
 
 
                                                 
The  amount  relates  to  the  estimated  cost  of  interest  payments  resulting  from  the  ruling  on  the 
Tirlemontoise case (C-585/15) concerning the sugar marketing years 1999/2000 and 2000/20019. 

2.3  

Combined effect on DB 2018 

Budget line 

Name 

Section III – European Commission 

05 02 08 03  Operational funds for producer organisations 
05 02 08 99  Other measures (fruit and vegetables) 
05 02 09 08  National support programmes for the wine sector 
05 02 12 02  Storage measures for skimmed-milk powder 

05 02 15 99 

Other measures (pigmeat, poultry, eggs, bee-keeping, other 
animal products) 

05 03 01 02  Single area payment scheme (SAPS) 
05 03 01 07  Redistributive payment 
05 03 01 10  Basic payment scheme (BPS) 

05 03 01 11 

Payment for agricultural practices beneficial for the climate and 
the environment 

05 03 01 13  Payment for young farmers 
05 03 01 99  Other (decoupled direct payments) 
05 03 02 40  Crop-specific payment for cotton 

05 03 02 44 

Specific support (Article 68 of Regulation (EC) No 73/2009) — 
Coupled direct payments 

05 03 02 60  Voluntary coupled support scheme 
05 03 02 61  Small farmers scheme 
05 03 02 99  Other (direct payments) 

Expenditure for financial corrections in favour of Member States 
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 
Expenditure for financial corrections in favour of Member States 
following decisions on conformity clearance of previous years’ 
accounts with regard to shared management declared under the 
EAGGF-Guarantee Section (previous measures) and under the 
EAGF 
Settlement of disputes 

05 07 01 06 

05 07 01 07 

05 07 02 

Total 

(in EUR) 

Commitment 
appropriations 

Payment 
appropriations 

12 000 000 
800 000 
7 000 000 
2 000 000 

12 000 000 
800 000 
7 000 000 
2 000 000 

60 000 000 

60 000 000 

2 000 000 
14 000 000 
-275 000 000 

2 000 000 
14 000 000 
-275 000 000 

95 000 000 

95 000 000 

34 000 000 
500 000 
-4 000 000 

34 000 000 
500 000 
-4 000 000 

-3 000 000 

-3 000 000 

4 000 000 
-110 000 000 
-2 000 000 

4 000 000 
-110 000 000 
-2 000 000 

1 400 000 

1 400 000 

5 200 000 

5 200 000 

102 200 000  
-53 900 000 

102 200 000 
-53 900 000 

9  

A  specific  Commission  Communication  to  the  Council,  accompanied  by  a  proposal  fixing  the  new  production 
levies  and  the  coefficient  for  calculating  the  additional  levy  in  the  sugar  sector  for  these  2  marketing  years 
1999/2000 and 2000/2001, is currently under preparation. It will be similar to the earlier Communication of the 
Commission  to  the  Council  (COM(2013)  526  final)  of  17.7.2013  following  the  Court's  ruling  on  the  so-called 
'Jülich and others' case in 2012. 

7 

 
  
 
 
 
 
                                                 
EUROPEAN UNION SOLIDARITY FUND (EUSF) 

3. 
On  26  June  201710,  the  Commission  proposed  to  mobilise  the  European  Union  Solidarity  Fund 
(EUSF)  for  an  amount  of  EUR 1 196,8 million  to  provide  assistance  to  Italy  following  a  series  of 
earthquakes that took place between August 2016 and January 2017 in the regions of Abruzzo, Lazio, 
Marche  and  Umbria.  This  mobilisation  was  accompanied  by  Draft  Amending  Budget  (DAB) 
No 4/201711  that  proposes  to  enter  the  necessary  appropriations  in  the  general  budget  2017,  both  in 
commitments and payments, after having deducted the advance already paid in 2016. 

The  amount  that  could  be  mobilised  at  that  stage  of  the  year  2017  was  EUR 902,8 million, 
corresponding to the total amount available for the mobilisation of the EUSF at the beginning of 2017 
(EUR 1 115,1 million),  minus  the  previous  mobilisation12  (EUR 71,5 million),  minus  the  retained 
amount  of  EUR 140,8 million  in  order  to  respect  the  obligation  of  keeping  aside  25 %  of  the  2017 
annual allocation until 1 October 2017 as stipulated by Article 10(1) of the MFF regulation13. 

This amount was thus not sufficient to cover the full mobilisation of the EUSF for Italy. However, the 
Commission considered that the conditions under Article 10(2) of the MFF regulation were fulfilled 
and proposed to cover the difference of EUR 294,0 million from the annual amount available in 2018. 

Both  the  mobilisation  decision  and  DAB  No°4/2017  were  definitively  adopted  by  the  European 
Parliament on 13 September 2017. 

Because of this exceptional frontloading in 2017, it is necessary to decrease accordingly the amount 
entered as a reserve in DB 2018, in both commitment and payment appropriations. The purpose of this 
reserve  is  to  allow  for  the  EUSF  mobilisation  via  transfers  simultaneously  with  the  mobilisation 
decision of the European Parliament and the Council. As such an approach would reduce the need for 
amending budgets, it would thus accelerate the EUSF mobilisation process. 

Budget line 

Name 

Section III – European Commission 

40 02 44 

Total 

Reserve for the European Union Solidarity Fund 

4. 

AGENCIES 

Commitment 
appropriations 

Payment 
appropriations 

(in EUR) 

-293 628 245 

-112 000 000 

-293 628 245 

-112 000 000 

European Securities and Markets Authority (ESMA) 

4.1  
On  13  June  2017,  the  Commission  adopted  a  proposal  for  a  Regulation14  as  regards  the  procedures 
and authorities involved for the authorisation of Central Counterparties (CCPs) and requirements for 
the recognition of third-country CCPs. 

10  
11 
12 

13  

14  

COM(2017) 540, 26.6.2017. 
COM(2017) 541, 26.6.2017. 
Decision (EU) 2017/741 of the European Parliament and of the Council of 5 April 2017 on the mobilisation of the 
European  Solidarity  Fund  to  provide  assistance  to  the  United  Kingdom,  Cyprus  and  Portugal  (OJ  L  111, 
24.4.2017, p. 6) and the accompanying Amending Budget No 1/2017 (OJ L 136, 24.5.2017, p. 1). 
Council  Regulation  2013/1311  of  2  December  2013  laying  down  the  multiannual  financial  framework  for  the 
years 2014-2020, OJ L34, 20.12.2013, p. 884. 
COM(2017) 331, 13.6.2017. 

8 

 
  
 
 
 
 
                                                 
There are currently 17 CCPs established in the EU, all of which are authorised to offer their services 
within the Union. An additional 28 third-country CCPs have been recognised, allowing them to offer 
their services in the EU. A further 12 CCPs from 10 jurisdictions have applied for recognition and are 
awaiting  a  decision  of  the  Commission.  Moreover,  a  substantial  volume  of  euro-denominated 
derivatives  transactions  (and  other  transactions  subject  to  the  EU  clearing  obligation)  is  currently 
cleared in CCPs located in the United Kingdom.  

Given the increased number of third country CCPs, the Commission proposes to give a mandate to the 
European Securities and Markets Authority (ESMA, Paris) to take on a broader range of supervisory 
tasks in relation to these CCPs. It has been assumed that the Regulation will enter into force in mid-
2018. ESMA will require additional human and financial resources to carry out its new tasks under the 
CCP Regulation, with a phasing in over the period 2018-2020. 

For  the  year  2018,  20  additional  temporary  agents  (to  be  recruited  at  grade  AD7)  and  10  seconded 
national  experts  are  requested, starting  from  August  2018.  The  related  expenditure,  in  particular  for 
salary needs, mission expenses and office rent, amounts to EUR 4,3 million in 2018, and is expected 
to  be covered by fees from industry. However, given that the introduction  of fees  will require prior 
adoption of a Commission delegated act, the costs incurred in 2018 will need to be financed by the EU 
budget  (to  be  taken  from  the  unallocated  margin  under  the  expenditure  ceiling  of  heading  1a),  and 
returned to the EU budget at the latest in 2020. 

Budget line 

Name 

Section III – European Commission 

12 02 06 

European Securities and Markets Authority (ESMA) 

Total 

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

Commitment 
appropriations 

Payment 
appropriations 

(in EUR) 

4 310 555 

4 310 555 

4 310 555 

4 310 555 

4.2 

European  Foundation  for  the  improvement  of 
(EUROFOUND) 

living  and  working  conditions 

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  2018,  i.e.  from  93 
posts  authorised  in  the  2017  budget  to  91  posts  in  the  2018  draft  budget,  of  which  49  posts  were 
proposed in the function group for Administrators and 42 posts in the function group for Assistants.  

Following the departure of two officials in the function group for Administrators, the agency has now 
requested  to  swap  two  permanent  posts  for  officials  for  two  temporary  posts  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 2018 (49). This has no impact on 
expenditure. 

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

9 

 
  
 
 
 
 
4.3  

Education, Audiovisual and Culture Executive Agency (EACEA) 

In  line  with  the  preliminary  results  of  the  cost-benefit  analysis  which  will  be  submitted  to  the 
Committee  on  Executive  Agencies  in  the  framework  of  the  upcoming  delegation  package,  the 
Commission  will propose to  entrust the EACEA  with  implementing  tasks  in  the context  of the new 
European  Solidarity  Corps'  (ESC)  proposed  on  30  May  201715.  These  tasks  include  the  launch  and 
conclusion of grant and procurement procedures, project monitoring, financial control and accounting, 
the contribution to programme evaluation and various support tasks. 

The  Commission  proposes  to  create  a  budget  item  15 01 06 03  Education,  Audiovisual  and  Culture 
Executive Agency — Contribution from European Solidarity Corps covering the operating costs that 
the EACEA would incur in the implementation of the ESC.  

No appropriations will be allocated to the budget item pending the result of the legislative procedure 
and the consultation of the Committee on Executive Agencies. The creation of this item with the token 
'pro memoria' will allow the Commission to transfer swiftly the necessary appropriations, in line with 
the provisions of the Financial Regulation, once the ESC legal basis is adopted so as not to delay the 
implementation  of  the  activities.  This  would  make  mobility  opportunities  for  young  people  rapidly 
available in the course of 2018.  

Budget line 

Name 

Section III – European Commission 

15 01 06 03  Education,  Audiovisual  and  Culture  Executive  Agency  — 

Contribution from European Solidarity Corps 

Total 

5. 

ADMINISTRATION 

Commitment 
appropriations 

Payment 
appropriations 

(in EUR) 

p.m. 

- 

p.m. 

- 

5.1  

European Anti-Fraud Office (OLAF) 

In  its  Statement  of  Estimates  for  the  financial  year  2018,  the  European  Anti-Fraud  Office  (OLAF) 
requested  the  conversion  of  one  temporary  AD15  post  into  a  permanent  AD15  post  in  OLAF's 
establishment plan as of 1 January 2018. 

However,  due  to  the  Commission  decisions  on  personnel,  made  in  the  context  of  the  recruitment 
procedure of the new Director General of OLAF, this requested conversion is withdrawn, so that the 
post remains temporary. 

The modifications will cause no impact on the expenditure of OLAF. The updated establishment plan 
is set out in the budgetary annex. 

5.2  

Publications Office (OP)  

In  the  context  of  modernisation  of  support  processes  and  the  establishment  of  improved  working 
methods, the Commission has set up a digital transformation agenda especially in the fields of local 
data  centres  consolidation,  ICT  equipment  and  security.  In  this  framework  and  in  close  cooperation 
with Directorate General Informatics (DIGIT), the Publications Office (OP) decided on 21 November 
2016  to  launch  an  IT  consolidation  project  in  three  main  areas:  network  and  telecommunication, 
digital workplace and office automation and data centres. 

The main benefit of the consolidation will come from economies of scale derived from the process of 
industrialisation. 

15  

COM(2017) 262, 30.5.2017. 

10 

 
  
 
 
                                                 
In order to implement this project, 14 posts (3 AD and 11 AST) currently assigned to the OP in the IT 
Infrastructure  and  Production  sectors  will  have  to  be  transferred  to  the  Commission  in  DG  DIGIT. 
These posts represent the resources needed in the Commission to ensure the continuity of service for 
OP operations. 

In this context a convention between the OP and DIGIT was signed on 30 May 2017 which explains 
why it was not possible to include these movements of posts in the DB 2018. 

Hence,  it  is  proposed  to  transfer  14  posts  and  the  related  salary  appropriations  from  OP  to  the 
Commission, as of 1 January 2018. 

The impact of this transfer on appropriations is neutral. The proposed updated establishment plans for 
the Commission (administration) and for the OP are set out in the budgetary annex. 

Budget line 

Name 

Section III – European Commission 
XX 01 01 01 01  Remuneration and Allowances 
XX 01 01 01 02  Expenses  and  allowances  related  to  recruitment,  transfers  and 

termination of service 

XX 01 01 01 03  Adjustments to remuneration 

Publications Office 

26 01 09 
(A2 01 01) 

Total 

Commitment 
appropriations 

Payment 
appropriations 

(in EUR) 

1 238 000 

1 000 

1 238 000 

1 000 

12 000 

12 000 

-1 251 000 

-1 251 000 

- 

- 

5.3 

European External Action Service (EEAS) 

5.3.1    EU's future engagement with Afghanistan following the end of mandate of the double-hatted 

EUSR Afghanistan  

The  mandate  of  the  double  hatted  EU  Special  Representative  (EUSR)  in  Afghanistan  ended  on  31 
August 2017. Against the background of the greatly strengthened political mandate of EU Heads of 
Delegations  to  represent  the  EU  comprehensively  in  third  countries  post-Lisbon,  and  taking  into 
account the views of the European Parliament16, the High Representative has decided not to propose 
the appointment of another EUSR for Afghanistan after the expiry of the current mandate. EU's future 
engagement with Afghanistan will instead be supported by two EUSR successor entities: 

  A Brussels-based EU Special Envoy was appointed on 1 September 2017 taking over the EUSR's 
tasks  of  regional  and  international  coordination  related  to  the  peace,  stabilisation  and  the 
reconciliation  process  in  Afghanistan.  The  Special  Envoy  will  be  supported  by  two  political 
advisors and one assistant. 

  The  EU  delegation  in  Kabul  will be  reinforced  by  a  new Political,  Press  and  Information  (PPI) 
Section.  This  will  enable  it  to  play  its  expected  role  fully,  including  accompanying  the 
comprehensive Afghan reform programme, the implementation of the peace agreements, support 
for economic development and the implementation of EU development aid assistance.  

This  concept  was  presented  to  the  Political  and  Security  Committee  on  13  June  2017  with  no 
objections from EU Member States. 

16 

Notably point 101 of its resolution of 16 February 2017 on improving the functioning of the European Union. 

11 

 
  
 
 
 
 
                                                 
Whereas  the  costs  for  the  office  of  the  Special  Envoy  will  be  almost  entirely  covered  by 
redeployments within the EEAS' current administrative budget, an increase of the EEAS budget will 
be necessary to cover the additional costs related to the establishment of the new PPI Section in the 
EU Delegation in Kabul and other administrative costs related to infrastructure and security, which are 
currently covered by the EUSR. 

This increase to the EEAS' administrative budget (Heading 5, Section X of the EU Budget) in 2018 
would amount to EUR 4,5 million (full year cost).  

Overall,  the  increase  will  be  compensated  by  savings  in  the  Common  Foreign  and  Security  Policy 
(CFSP, Heading 4, Section III of the EU Budget) arising from the closure of the EUSR Afghanistan, 
estimated  at  EUR 10,2 million.  It  is  proposed  that  the  balance  of  EUR 5,7 million  remains  in  the 
CFSP budget to cater for any other new actions which cannot be programmed in advance. 

The proposed transition also represents an administrative simplification, as the EEAS will no longer 
need to maintain a complex system of parallel records for the expenditure incurred on behalf of the 
EUSR Afghanistan. 

5.3.2    Transition of certain Monitoring, Mentoring and Advising (MMA) tasks from EULEX Kosovo 

to the EU Office in Kosovo 

As  a  result  of  the  2015/2016  Strategic  Review  and  EULEX  Kosovo’s  gradual  phasing-out,  the 
Council asked the EEAS to prepare a transition strategy. 

A  concept  of  transition  for  EULEX  was  presented  to  the  Committee  for  Civilian  Aspects  of  Crisis 
Management  (CivCom)  on  13  March  2017  proposing  the  transfer  of  certain  MMA  tasks  to  the  EU 
Office, which therefore has to be reinforced with new positions of Rule of Law strategic advisors and 
administrative staff financed by the EEAS administrative budget. 

On  that  basis,  CivCom  agreed  on  this  concept  on  24  April  2017  and  the  Political  and  Security 
Committee (PSC) endorsed it on 28 April 2017, thereby inviting the EEAS to prepare the transition. 

It has been estimated that 12 new posts would be required in the EU Office (contract agents, national 
experts and local agents) to carry out the tasks and the incremental related administrative workload. 
These new posts would give rise to an increase of the EEAS administrative budget of EUR 0,5 million 
for the 6,5 months concerned in 2018. The full amount on an annual basis would be EUR 0,8 million, 
which would be the reference point for the budget 2019 and following years. 

Under  the  current  assumptions,  the  corresponding  reduction  of  posts  within  the  EULEX  mission 
amounts to 41, leading to expected savings of EUR 1,8 million in 2018 in the Common Foreign and 
Security Policy17. It is proposed that the balance of EUR 1,3 million remains in the CFSP budget to 
cater for any other new actions, which cannot be programmed in advance. 

It is expected that, once completed, the transition of EULEX MMA tasks will lead to a further cut of 
37  additional  positions  (24  internationals  and  13  locals),  making  78  in  total,  which  however  will 
require around 10 additional posts to be financed by an increase to the EEAS' administrative budget. 

5.3.3    Separate budget line for the contribution to European Schools 

For reasons of transparency and harmonisation with other institutions, it is proposed to create a new 
budget item to display the EEAS' contribution to type 2 European Schools. 

The expenditure, EUR 20 000 per year, is currently financed from another item related to staff, which 
will be reduced accordingly. The operation is therefore budget-neutral. 

17  

These savings are estimated on a full annual basis, since the yearly budgets of the Common Security and Defence 
Policy missions are committed in full with each mandate renewal. 

12 

 
  
 
                                                 
5.3.4    Combined effect on DB2018 

Budget line 

Name 

Section III – European Commission 
19 03 01 02  EULEX Kosovo 
19 03 01 05  Emergency measures 
19 03 01 07  European Union Special Representatives 
Sub-total Section III 

Section X – European External Action Service 

Commitment 
appropriations 

Payment 
appropriations 

(in EUR) 

-1 821 000 

7 001 000 

-1 821 000 

7 001 000 

-10 200 000  

-10 200 000  

-5 020 000 

-5 020 000 

Entitlements  under  the  Staff  Regulations  related  to  the  personal 
circumstances of the staff member 

-20 000  

-20 000  

1 1 0 2 

1 4 0 

1 5 0 4 

3 0 0 1 

3 0 0 2 

3 0 0 3 

3 0 0 4 

Missions 

Contribution to accredited Type II European Schools 

External staff and outside services 

Other expenditure related to staff 

Buildings and associated costs 

Other administrative expenditure 

75 000  

20 000  

1 023 000  

212 000  

3 635 000  

75 000  

5 020 000 
- 

75 000  

20 000  

1 023 000  

212 000  

3 635 000  

75 000  

5 020 000 
- 

Sub-total Section X 

Total 

13 

 
  
 
 
 
6. 

SUMMARY TABLE BY MFF HEADING 

Heading 

Draft Budget 2018 

Amending Letter 1/2018 

Draft Budget 2018 

(incl. AL1/2018) 

CA 

PA 

CA 

PA 

CA 

PA 

1. 

Smart and inclusive growth 

77 249 180 217 

66 845 867 101 

 4 310 555 

 4 310 555 

77 253 490 772 

66 850 177 656 

Of which under global margin for commitments 

 891 685 985 

Ceiling  

Margin 

76 420 000 000 

 62 505 768 

 891 685 985 

76 420 000 000 

 58 195 213 

1a 

Competitiveness for growth and jobs 

21 841 301 956 

20 082 398 844 

 4 310 555 

 4 310 555 

21 845 612 511 

20 086 709 399 

Of which under global margin for commitments 

 658 352 652 

Ceiling 

Margin 

21 239 000 000 

 56 050 696 

 658 352 652 

21 239 000 000 

 51 740 141 

1b   Economic  social and territorial cohesion 

55 407 878 261 

46 763 468 257 

55 407 878 261 

46 763 468 257 

Of which under global margin for commitments 

 233 333 333 

Ceiling 

Margin 

55 181 000 000 

 6 455 072 

 233 333 333 

55 181 000 000 

 6 455 072 

2. 

Sustainable growth: natural resources 

59 553 523 122 

56 359 793 633 

- 53 900 000 

- 53 900 000 

59 499 623 122 

56 305 893 633 

Ceiling 

Margin 

60 267 000 000 

 713 476 878 

60 267 000 000 

 767 376 878 

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

43 518 316 899 

43 472 477 466 

- 53 900 000 

- 53 900 000 

43 464 416 899 

43 418 577 466 

3. 

Security and citizenship 

3 473 056 199 

2 963 847 175 

3 473 056 199 

2 963 847 175 

Sub-ceiling 

44 163 000 000 

44 163 000 000 

 817 056 199 

2 656 000 000 

Of which under Flexibility Instrument 

 817 056 199 

2 656 000 000 

4.  Global Europe 

Ceiling 

Margin 

Ceiling 

Margin 

9 593 045 411 

8 951 045 154 

- 5 020 000 

- 5 020 000 

9 588 025 411 

8 946 025 154 

9 825 000 000 

 231 954 589 

9 825 000 000 

 236 974 589 

5. 

Administration 

9 682 398 486 

9 684 953 486 

 5 020 000 

 5 020 000 

9 687 418 486 

9 689 973 486 

Ceiling 

10 346 000 000 

Of which offset against Contingency margin 

- 570 000 000 

Margin 

 93 601 514 

10 346 000 000 

- 570 000 000 

 88 581 514 

Of which: Administrative expenditure of the 
institutions 

7 591 229 286 

7 593 784 286 

 5 020 000 

 5 020 000 

7 596 249 286 

7 598 804 286 

Of which offset against Contingency margin 

- 570 000 000 

Sub-ceiling 

8 360 000 000 

Margin 

 198 770 714 

8 360 000 000 

- 570 000 000 

 193 750 714 

Total 

159 551 203 435 

144 805 506 549 

- 49 589 445 

- 49 589 445 

159 501 613 990 

144 755 917 104 

Of which under Flexibility Instrument 

Of which under global margin for commitments 

 817 056 199 

 891 685 985 

 667 152 692 

 817 056 199 

 891 685 985 

 667 152 692 

Ceiling 

159 514 000 000 

154 565 000 000 

159 514 000 000 

154 565 000 000 

Of which offset against Contingency margin 

- 570 000 000 

Margin 

1 101 538 749 

10 426 646 143 

- 570 000 000 

1 151 128 194 

10 476 235 588 

Other special Instruments 

1 090 902 000 

 619 600 000 

- 293 628 245 

- 112 000 000 

 797 273 755 

 507 600 000 

Grand Total 

160 642 105 435 

145 425 106 549 

- 343 217 690 

- 161 589 445 

160 298 887 745 

145 263 517 104 

14