Proposal for a COUNCIL REGULATION amending Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020
Date: 2020-04-02
Institutions: Directorate-General for Budget, European Commission
Subjects: budgetary procedure, commitment of expenditure, epidemic, financial management, general budget (EU), infectious disease

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   EUROPEAN COMMISSION  Brussels, 2.4.2020  COM(2020) 174 final 2020/0055 (APP)  Proposal for a COUNCIL REGULATION amending Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The  COVID-19  outbreak  has  affected  the  society  and  economy  in  the  European  Union  in  a 
dramatic  way  requiring  the  Member  States  to  adopt  exceptional  measures.  The  outbreak 
represents a severe public health emergency for citizens, societies and economies. Economic 
activities are disrupted causing liquidity constraints and a severe deterioration in the financial 
situation  of  economic  actors  (enterprises,  and  in  particular  SMEs).  Member  States  are  also 
facing increased demands on state resources to finance the public health systems and maintain 
public services. 

To help Member States meet all these challenges and respond to the impact of the outbreak, 
the  Commission  proposed  a  wide  range  of  measures  in  the  Covid-19  Response  Investment 
Initiative1,  including  the  deployment  of  European  Structural  and  Investment  Funds2.  A 
reinforcement  of  the  European  Union  Civil  Protection  Mechanism/rescEU  was  proposed,  to 
coordinate  joint  procurement  and  increase  the  stock  of  medicines,  personal  protective 
equipment and medical products, to repatriate European citizens stranded outside the EU3. A 
reinforcement of the European Centre for Disease Prevention and Control (ECDC) was also 
proposed.   

In order to provide an adequate response to the needs resulting from the COVID-19 outbreak, 
the Commission now proposes to activate, with a budget of EUR 2,7 billion, the Emergency 
Support  Instrument,  created  in  2016  on  the  peak  of  the  refugee  crisis,  to  provide  assistance 
with the Covid-19 outbreak4 to the Member States. In view of the rapid development of the 
crisis,  the  Commission  also  proposes  to  further  reinforce  the  Union  Civil  Protection 
Mechanism/rescEU  with  an  additional  budget  of  EUR 300 million  so  as  to  facilitate  wider 
stock-piling and coordination of essential resource distribution across Europe5.  

This  requires  the  mobilisation  of  special  instruments  as  there  are  no  available  margins  or 
scope  for  redeployment  in  heading  3  of  the  multiannual  financial  framework  (MFF).  The 
availability  of  special  instruments  for  2020  is  presented  in  the  technical  adjustment  of  the 
MFF for 20206.  

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Communication from the Commission to the EP, the European Council, the Council, the ECB, the EIB 
and  the  Eurogroup  :  Coordinated  economic  response  to  the  COVID-19  Outbreak;  COM(2020)  112 
final, 13.3.2020. 
Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) No 
1303/2013,  Regulation  (EU)  No  1301/2013  and  Regulation  (EU)  No  508/2014  as  regards  specific 
measures to mobilise investments in the health care systems of the Member States and in other sectors 
of  their  economies  in  response  to  the  COVID-19  outbreak  [Coronavirus  Response  Investment 
Initiative], of 13 March 2020  COM(2020) 113 final, 13.3.2020. 
Draft Amending Budget No 1/2020, COM(2020) 145, 27.3.2020. 
Proposal  for  a  Council  Regulation  activating  the  emergency  support  under  Council  Regulation  (EU) 
2016/369  of  15  March  2016  and  amending  its  provisions  in  respect  of  the  COVID-19  outbreak, 
COM(2020) 175, 2.4.2020. 
Draft Amending Budget No 2/2020, COM(2020) 170, 2.4.2020. 
Communication  of  the  Commission  to  the  European  Parliament  and  the  Council  on  the  technical 
adjustment in respect of special instruments for 2020 (Article 6(1)(e) and (f) of Council Regulation No 
1311/2013  laying  down  the  multiannual  financial  framework  for  the  years  2014-2020).  COM(2020) 
173, 2.4.2020. 

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Based on the current definition and scope of the special instruments in the MFF Regulation, 
only  the  Flexibility  Instrument  and  the  Contingency  Margin  can  be  used  for  this  purpose, 
given  that  the  use  of  the  Global  Margin  for  Commitments  is  restricted  to  youth  and 
employment as well as migration and security. The current combined availabilities under the 
Flexibility  Instrument  and  the  Contingency  Margin  are  not  sufficient  to  cover  the  financing 
needs of the Emergency Support Instrument and of the significant reinforcement of the Union 
Civil Protection Mechanism/rescEU. 

Given that this  is the last  year  of the 2014-2020 MFF and the European Union is facing  an 
unprecedented  health  and  economic  crisis,  the  Commission  proposes  to  amend  the  MFF 
Regulation  in  order  to  remove  the  limitations  in  the  scope  of  the  Global  Margin  for 
Commitments  (Article  14)  so  as  to  allow  the  full  financing  of  the  EUR 3,0 billion  for  the 
Covid-19  outbreak  response  proposed  in  draft  amending  budget  No 2/2020  presented 
separately. 

The  Commission  proposes  to  delete  the  references  to  “youth  and  employment”,  and  “for 
migration and security measures” from the wording of the relevant Articles.  

Article 135(2) of the Agreement on the withdrawal of the United Kingdom of Great Britain 
and  Northern  Ireland  from  the  European  Union  and  the  European  Atomic  Energy 
Community7 provides that amendments to Council Regulation (EU, Euratom) No 1311/2013 
that are adopted on or after the date of entry into force of that Agreement shall not apply to 
the United Kingdom insofar as those amendments have an impact on the United Kingdom's 
financial  obligations.  Amendments  provided  in  this  Regulation  are  limited  to  the  change  of 
the  purpose of  the  use  of  the  Global  margin  for  commitments  and  do  not  increase  financial 
obligations.  Therefore,  Article  135(2)  of  the  Agreement  on  the  withdrawal  of  the  United 
Kingdom of Great Britain and Northern Ireland from the European Union and the European 
Atomic Energy Community does not apply to this amendment. 

2. 

BUDGETARY IMPLICATIONS 

The  present  proposal  has  no  immediate  budgetary  implications.  The  Global  Margin  for 
Commitments  is  mobilised  and  appropriations  entered  in  the  annual  budget  subject  to  the 
procedures  laid  down  in  the  MFF  Regulation  and  the  Interinstitutional  Agreement  on 
budgetary  discipline,  on  cooperation  in  budgetary  matters  and  on  sound  financial 
management. 

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OJ L 29, 31.1.2020, p. 7. 

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2020/0055 (APP) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EU, Euratom) No 1311/2013 laying down the multiannual 
financial framework for the years 2014-2020 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 312 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the consent of the European Parliament1,  

Acting in accordance with a special legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

The  COVID-19  outbreak  and  the  associated  public  health  crisis,  which  require 
extraordinary  measures  to  be  taken,  has  put  great  pressure  on  the  available  financial 
resources within and outside the MFF ceilings. 

In order for the Union to be able to finance an appropriate response to the COVID-19 
outbreak  and  the  associated  public  health  and  economic  crisis  under  the  Emergency 
Support  Instrument2,  it  is  proposed  to  modify  the  purpose  for  which  the  available 
appropriations under Global margin for commitments can be used, insofar as it refers 
to  growth  and  employment,  in  particular  youth  employment,  and  for  migration  and 
security measures. 

It is proposed to mobilise the Global Margin for Commitments as soon as possible, in 
order  allow  for  its  rapid  use  in  2020,  as  proposed  in  Draft  Amending  Budget 
No 2/20203.  This  amendment  of  Regulation  No 1311/2013  should  enter  into  force  at 
the latest on the same day as the adoption of this Draft Amending Budget. 

Article 135(2)  of the Agreement on the withdrawal of the  United  Kingdom of  Great 
Britain  and  Northern  Ireland  from  the  European  Union  and  the  European  Atomic 
Energy Community4 provides that amendments to Council Regulation (EU, Euratom) 
No  1311/2013  that  are  adopted  on  or  after  the  date  of  entry  into  force  of  that 
Agreement shall not apply to the United Kingdom insofar as those amendments have 
an  impact  on  the  United  Kingdom's  financial  obligations.  Amendments  provided  in 
this  Regulation  are  limited  to  the  change  of  the  purpose  of  the  use  of  the  Global 
margin  for  commitments  and  do  not  increase  financial  obligations.  Therefore,  it  is 
appropriate  to  clarify  that  Article  135(2)  of  the  Agreement  on  the  withdrawal  of  the 

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OJ C , , p. . 
COM(2020) 175, 2.4.2020. 
COM(2020) 170, 2.4.2020. 
OJ L 29, 31.1.2020, p. 7. 

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United Kingdom of Great Britain and Northern Ireland from the European Union and 
the European Atomic Energy Community does not apply to this amendment. 

(5) 

Regulation (EU, Euratom) No 1311/2013 should therefore be amended accordingly, 

HAS ADOPTED THIS REGULATION: 

Regulation (EU, Euratom) No 1311/2013 is amended as follows: 

(1) 

In Article 3(2), the second sentence is replaced by the following: 

Article 1 

‘The commitment appropriations may be entered in the budget over and above the ceilings of 
the relevant headings laid down in the MFF where it is necessary to use the resources from the 
Emergency Aid Reserve, the European Union Solidarity Fund, the Flexibility Instrument, the 
European Globalisation Adjustment Fund, the Contingency Margin, the specific flexibility to 
tackle youth unemployment and strengthen research and the global margin for commitments 
(EU) 
in  accordance  with  Council  Regulation 
No 1309/2013 of the European Parliament and of the Council (**), and the Interinstitutional 
Agreement  on  budgetary  discipline,  on  cooperation  in  budgetary  matters  and  on  sound 
financial management (***). 

(EC)  No 2012/2002 (*),  Regulation 

_____________________________ 

(*) 

(**) 

(***) 

Council  Regulation  (EC)  No  2012/2002  of  11  November  2002  establishing  the 
European Union Solidarity Fund (OJ L 311, 14.11.2002, p. 3). 

Regulation  (EU)  No 1309/2013  of  the  European  Parliament  and  of  the  Council  of 
17 December 2013 on the European Globalisation Adjustment Fund (2014-2020) and 
repealing Regulation (EC) No 1927/2006 (OJ L 347, 20.12.2013, p. 855). 

Interinstitutional  Agreement between the European  Parliament,  the Council and the 
Commission  of  2  December  2013  on  budgetary  discipline,  on  cooperation  in 
budgetary  matters  and  on  sound  financial  management  (OJ  C  373,  20.12.2013,  p. 
1).’; 

(2) 

(a) 

Article 14 is amended as follows: 

the title is replaced by the following: 

‘Global Margin for Commitments’ 

(b) 

paragraph 1 is replaced by the following: 

‘1.  Margins left available below the MFF ceilings for commitment appropriations 
shall constitute a Global Margin for Commitments, to be made available over 
and above the ceilings established in the MFF for the years 2016 to 2020.’ 

This Regulation shall enter into force on the date of its publication in the Official Journal of 
the European Union. 

Article 2 

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This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the Council 
The President 

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