DRAFT AMENDING BUDGET No 5 TO THE GENERAL BUDGET 2018 Cancellation of the reserve related to the support to Turkey from the Instrument for Pre-Accession (IPA II), reinforcement of the European Neirbourhood Instrument (ENI) and of the Humanitarian Aid for orther urgent actions and modification of the establishment plan of the Innovation & Networks Executive Agency (INEA) in the context of the WiFi4EU initiative
Date: 2018-07-10
Institutions: Directorate-General for Budget, European Commission
Subjects: European neighbourhood policy, Internet, Türkiye, amending budget, draft budget (EU), executive agency, financial year, general budget (EU), humanitarian aid, pre-accession aid

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 10.7.2018 COM(2018) 537 final  DRAFT AMENDING BUDGET No 5 TO THE GENERAL BUDGET 2018 Cancellation of the reserve related to the support to Turkey from the Instrument for Pre-Accession (IPA II), reinforcement of the European Neirbourhood Instrument (ENI) and of the Humanitarian Aid for orther urgent actions and modification of the establishment plan of the Innovation & Networks Executive Agency (INEA) in the context of the WiFi4EU initiative  
 
 
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 2018, as adopted on 
30 November 20172, 
the amending budget No°1/20183, adopted on 30 May 2018, 
the amending budget No°2/20184, adopted on 4 July 2018, 
the amending budget No 3/20185, adopted on 4 July 2018, 
the draft amending budget No 4/20186, adopted on 31 May 2018. 

The European Commission hereby presents draft amending budget No 5 to the general budget 
2018 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. 

1  
2  
3  
4  
5  
6  

OJ L 298, 26.10.2012, p. 1. 
OJ L 57, 28.2.2018, p. 1. 
OJ L XXX, XX.XX.2018. 
OJ L XXX, XX.XX.2018 [COM(2018) 227]. 
OJ L XXX, XX.XX.2018 [COM(2018) 310]. 
COM(2018) 361. 

1 

 
 
                                                 
TABLE OF CONTENTS 

1. 

2. 

3. 

4. 

5. 

6. 

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

CANCELLATION OF THE RESERVE RELATED TO THE SUPPORT TO TURKEY FROM 
THE INSTRUMENT FOR PRE-ACCESSION (IPA II) ..................................................................... 4 

REINFORCEMENT OF THE EUROPEAN NEIGHBOURHOOD INSTRUMENT (ENI) IN 
COMMITMENT APPROPRIATIONS ................................................................................................ 5 

REINFORCEMENT OF HUMANITARIAN AID IN PAYMENT APPROPRIATIONS ............... 5 

WIFI4EU INITIATIVE - REINFORCEMENT OF THE ESTABLISHMENT PLAN OF THE 
INNOVATION & NETWORKS EXECUTIVE AGENCY (INEA) ................................................... 6 

SUMMARY TABLE BY MFF HEADING ........................................................................................... 7 

2 

 
 
 
1. 

INTRODUCTION 

The purpose of Draft Amending Budget (DAB) No 5 for the year 2018 is the following: 

-  To  cancel,  both  in  commitment  and  payment  appropriations,  the  reserve  related  to  the 
support to Turkey from the Instrument for Pre-Accession (IPA II) as the condition set by 
the European Parliament and the Council for its lifting has not been met. 

-  To  reinforce,  in  commitment  appropriations,  the  European  Neighbourhood  Instrument 
(ENI) to fund additional actions linked to the Central Mediterranean migratory route and 
to  fulfil  part  of  the  pledge  made  at  the  24-25  April  2018  Brussels  II  conference 
"Supporting the future of Syria and the region". 

-  To reinforce, in payment appropriations, the Humanitarian Aid to cover the needs in pre-
financing  payments  as  a  result  of  the  reinforcements  in  commitment  appropriations, 
decided at the end of 2017, from the Emergency Aid Reserve and as part of the Year-end 
transfer. 

-  To  modify  the  establishment  plan  of  the  Innovation  &  Networks  Executive  Agency 

(INEA) in the context of the WiFi4EU initiative. 

Overall this amending budget is neutral. 

2. 

CANCELLATION  OF  THE  RESERVE  RELATED  TO  THE  SUPPORT  TO  TURKEY  FROM  THE 
INSTRUMENT FOR PRE-ACCESSION (IPA II) 

In the context of the budgetary procedure 2018, the European Parliament and the Council decided 
to place in reserve EUR 70 million in commitment appropriations and EUR 35 million in payment 
appropriations  on  the  budget  item  22 02 03 01 Support  for  political  reforms  and  related 
progressive  alignment  with  the  Union  acquis.  This  budget  line  relates  to  the  support  to  Turkey 
from the Instrument for Pre-Accession (IPA II). 

The condition set to release these amounts reads as follows : "(…) when Turkey makes measurable 
sufficient improvements in the fields of rule of law, democracy, human rights and press freedom, 
according to the annual report of the Commission". 
The  Commission's  annual  report  on  Turkey,  published  on  17  April  20187,  is  unequivocal  in  its 
findings  that  there  have  been  no  measurable  improvements  and  that,  rather,  Turkey  continues to 
move further away from Europe, especially with regard to the continued under-performance on the 
rule of law, democracy and human rights. The ongoing state of emergency declared in the wake of 
the attempted coup of 15 July  2016 and  the scope of actions taken under it have led to  a  severe 
curtailment of civil and political rights including freedom of expression and freedom of assembly. 
The independence of the judiciary and the right to a fair trial have been widely undermined while 
civil society has been under increasing pressure. Since the introduction of the state of emergency, 
over 150,000 people have been taken into custody including over 150 journalists.  

Since  the  publication  of  the  annual  report,  there  has  been  no  reversal  of  the  trends  mentioned 
above.  

The condition set by the European Parliament and the Council has therefore not been met and it is 
consequently  proposed  to  cancel  fully  the  related  amounts  in  reserve,  both  in  commitment  and 
payment  appropriations,  as  well  as  the  related  budget  remarks,  and  increase  the  European 
Neighborhood instrument (ENI) and Humanitarian Aid instead. 

7  

COM(2018) 450, SWD(2018) 153. 

3 

 
 
 
                                                 
Budget line 

40 02 41 

Name 

Differentiated  appropriations  (Reserve  for  budget 
item  22 02 03 01  –  Instrument  for  Pre-accession 
Assistance  –  Turkey  Support  for  political  reforms 
and  related  progressive  alignment  with  the  Union 
acquis) 

Total 

3. 

in EUR 

Commitment 
appropriations 

Payment 
appropriations 

-70 000 000 

-35 000 000 

-70 000 000 

-35 000 000 

REINFORCEMENT  OF  THE  EUROPEAN  NEIGHBOURHOOD  INSTRUMENT  (ENI)  IN 
COMMITMENT APPROPRIATIONS 

The  Commission  proposes  to  reinforce  the  European  Neighbourhood  Instrument  (ENI)  with 
EUR 70 million in commitment appropriations in order to fund additional urgent actions linked to 
the Central Mediterranean migratory route and to fulfil part of the pledge made at the 24-25 April 
2018 Brussels II conference "Supporting the future of Syria and the region". To this end the funds 
will be channelled to the North Africa window of the EU Trust Fund Africa and to the Madad EU 
Trust Fund (for Syria). 

EUR 28 million  would  be  transferred  to  the  EUTF  Africa's  North  Africa  window  in  order  to 
contribute  to  closing  the  financing  gap  of  EUR 225 million  identified  for  2018-2019  and 
confirmed  in  the  last  two  progress  reports  on  the  Implementation  of  the  European  Agenda  on 
Migration8. In the case of Libya the additional funding will mainly relate to the voluntary return of 
vulnerable stranded migrants. In addition, and despite an overall decrease of illegal border crossing 
in  2018,  movements  from  Morocco  and  Tunisia  towards  Europe  are  increasing  and  call  for 
renewed  support  to  the  root  causes  of  irregular  migration  in  Tunisia  and  to  the  effective 
implementation of the integration strategy of Morocco. 

EUR 42 million  would  be  transferred  to  the  EU  Regional  Trust  Fund  in  Response  to  the  Syrian 
Crisis,  the  'Madad  EU  Trust  Fund'  in  order  to  finance  part  of  a  package  of  actions  for  Syrian 
refugees  in  Jordan  related  to  social  protection,  higher  education,  livelihoods  and  health,  to  be 
adopted by the Operational Board of the Trust Fund in December 2018. 

No additional payment appropriations are needed in 2018 for these actions. 

Budget line 

22 04 01 03 

Total 

Name 

Mediterranean 
building, 
security and the prevention and settlement of conflicts 

countries — Confidence 

Commitment 
appropriations 

Payment 
appropriations 

in EUR 

70 000 000 

70 000 000 

- 

0 

4. 

REINFORCEMENT OF HUMANITARIAN AID IN PAYMENT APPROPRIATIONS 

The  Commission  proposes  to  reinforce  Humanitarian  Aid  with  EUR 35 million  in  payment 
appropriations to  meet payment needs  triggered by the budgetary  reinforcements in  commitment 
appropriations at the end of 2017:  

  EUR 102 million from the Emergency Aid Reserve and other redeployments; and  
  EUR 22,8 million  through  the  year-end  transfer  for  Humanitarian  aid  in  accordance  with 

Article 26(2) of the Financial Regulation. 

8  COM(2018) 250, 14.3.2018 and COM(2018) 301, 16.5.2018. 

4 

 
 
 
 
                                                 
These reinforcements did not include the corresponding payment appropriations since only part of 
the contracting was done in 2017 and could be covered by the existing payment appropriations in 
2017.  Since  the  remaining  contracts  are  being  signed  in  2018  and  because  the  current  level  of 
payment  appropriations  in  the  budget  2018  is  not  sufficient  to  cover  the  related  pre-financing 
payments, additional payment appropriations are needed. 

It  is  therefore  proposed  to  add  EUR 35 million  in  payment  appropriations  to  the  budget  article 
23 02 01 Delivery of rapid, effective and needs-based humanitarian aid and food assistance. 

Commitment 
appropriations 

Payment 
appropriations 

in EUR 

- 

0 

35 000 000 

35 000 000 

Budget line 

23 02 01 

Name 

Delivery  of 
humanitarian aid and food assistance 

rapid,  effective  and  needs-based 

Total 

5. 

WIFI4EU  INITIATIVE  -  REINFORCEMENT  OF  THE  ESTABLISHMENT  PLAN  OF  THE 
INNOVATION & NETWORKS EXECUTIVE AGENCY (INEA) 

The WiFi4EU initiative aims to promote internet connectivity in local communities9. It takes the 
form  of  a  voucher  scheme  the  objective  of  which  is  to  provide,  free  of  charge  and  without 
discriminatory  conditions,  high-quality  Internet  access  to  residents  and  visitors  in  the  centres  of 
local  public  life.  Public  sector  bodies  –  and  more  specifically  municipalities  –  will  thus  be 
empowered to install public Wi-Fi hotspots in indoor or outdoor public spaces, such as town hall, 
public libraries, town squares,  museums and health centres in  about 6,000 to  8,000 communities 
across  Europe  by  2020.  It  will  also  facilitate  these  local  communities'  access  to  online  services, 
such  as  e-Health,  e-Government,  e-Tourism,  etc.,  and  it  will  eventually  offer  a  roaming  service 
between WiFi4EU hotspots for end-users. 

Further to Commission Decision C(2018)1281 of 27 February 2018 delegating the implementation 
of  the  initiative  to  the  Innovation  &  Networks  Executive  Agency  (INEA),  the  agency  should 
dispose of an adequate level of human resources to carry out the new tasks. As foreseen in the cost 
benefit  analysis  and  indicated10  in  the  financial  statement  attached  to  the  Decision,  the  2018 
establishment plan of the Agency needs to be amended to add one post of temporary agent at grade 
AD7. 

This  amendment,  increasing  the  total  number  of  posts  of  INEA  from  71  to  72,  can  be  financed 
within the Agency's budget for this year. Consequently, a reinforcement of the EU subsidy to this 
executive agency is not required. 

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

9   Regulation  (EU)  2017/1953  of  the  European  Parliament  and  of  the  Council  of  25  October  2017  amending 
Regulations (EU) No 1316/2013 and (EU) No 283/2014 as regards the promotion of internet connectivity in local 
communities. 

10   The delegation was accepted by the Director of the Agency as of 1st May 2018. 

5 

 
 
 
 
                                                 
6. 

SUMMARY TABLE BY MFF HEADING 

Heading 

(incl. AB 1-3 & DAB 4/2018) 

Budget 2018 

Draft Amending Budget 5/2018 

Budget 2018 

(incl. AB 1-3 & DAB 4-5/2018) 

CA 

PA 

CA 

PA 

CA 

PA 

1. 

Smart and inclusive growth 

77 533 697 652 

66 624 486 101 

77 533 697 652 

66 624 486 101 

Of which under global margin for 
commitments 
Ceiling  

1 113 697 652 

76 420 000 000 

Margin 

1 113 697 652 

76 420 000 000 

1a 

Competitiveness for growth and jobs 

22 001 452 724 

20 097 167 844 

22 001 452 724 

20 097 167 844 

Of which under global margin for 
commitments 
Ceiling 

 762 452 724 

21 239 000 000 

 762 452 724 

21 239 000 000 

Margin 

1b   Economic  social and territorial cohesion 
Of which under global margin for 
commitments 
Ceiling 

Margin 

55 532 244 928 

46 527 318 257 

55 532 244 928 

46 527 318 257 

 351 244 928 

55 181 000 000 

 351 244 928 

55 181 000 000 

2. 

Sustainable growth: natural resources 

59 285 323 122 

56 083 793 633 

59 285 323 122 

56 083 793 633 

Ceiling 

Margin 

60 267 000 000 

 981 676 878 

60 267 000 000 

 981 676 878 

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

43 234 516 899 

43 188 677 466 

43 234 516 899 

43 188 677 466 

Sub-ceiling 

44 163 000 000 

EAGF Margin 

 927 833 101 

44 163 000 000 

 927 833 101 

3. 

Security and citizenship 

3 493 241 199 

2 980 707 175 

3 493 241 199 

2 980 707 175 

Of which under Flexibility Instrument 

 837 241 199 

Ceiling 

Margin 

2 656 000 000 

 837 241 199 

2 656 000 000 

4.  Global Europe 

10 068 842 411 

8 906 075 154 

10 068 842 411 

8 906 075 154 

Of which under global margin for 
commitments 
Ceiling 

 243 842 411 

9 825 000 000 

Margin 

 243 842 411 

9 825 000 000 

5. 

Administration 

9 665 513 627 

9 666 318 627 

9 665 513 627 

9 666 318 627 

Of which offset against Contingency margin 

- 318 000 000 

Ceiling 

10 346 000 000 

Margin 

 362 486 373 

10 346 000 000 

- 318 000 000 

 362 486 373 

Of which: Administrative expenditure of the 
institutions 

7 579 920 627 

7 580 725 627 

7 579 920 627 

7 580 725 627 

Of which offset against Contingency margin 

- 318 000 000 

Sub-ceiling 

8 360 000 000 

Margin 

 462 079 373 

Total 

160 046 618 011 

144 261 380 690 

Of which under Flexibility Instrument 
Of which under global margin for 
commitments 
Ceiling 

 837 241 199 

 678 340 197 

1 357 540 063 

8 360 000 000 

- 318 000 000 

 462 079 373 

160 046 618 011 

144 261 380 690 

 837 241 199 

 678 340 197 

1 357 540 063 

159 514 000 000 

154 565 000 000 

159 514 000 000 

154 565 000 000 

Of which offset against Contingency margin 

- 318 000 000 

Margin 

1 344 163 251 

10 981 959 507 

Other special Instruments 

 698 540 311 

 551 238 311 

Grand Total 

160 745 158 322 

144 812 619 001 

- 318 000 000 

1 344 163 251 

10 981 959 507 

 698 540 311 

 551 238 311 

160 745 158 322 

144 812 619 001 

6