DRAFT AMENDING BUDGET No 6 TO THE GENERAL BUDGET 2020 Reflecting in the budget 2020 the launch of the recovery plan for Europe
Date: 2020-06-03
Institutions: Directorate-General for Budget, European Commission
Subjects: EU aid, amending budget, commitment of expenditure, draft budget (EU), economic recovery, financial year, general budget (EU)

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 3.6.2020  COM(2020) 423 final  DRAFT AMENDING BUDGET No 6 TO THE GENERAL BUDGET 2020   Reflecting in the budget 2020 the launch of the recovery plan for Europe   
 
 
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) 2018/1046 of the European Parliament and of the Council 
of 18 July 2018 on the financial rules applicable to the general budget of the Union 
(…)1, and in particular Article 44 thereof, 

the general budget of the European Union for the financial year 2020, as adopted on 
27 November 20192, 
amending budget No°1/20203, adopted on 17 April 2020, 
amending budget No°2/20204, adopted on 17 April 2020, 
draft amending budget No°3/20205, adopted on 15 April 2020, 
draft amending budget No°4/20206, adopted on 30 April 2020, 
draft amending budget No°5/20207, adopted on 3 June 2020, 

The  European  Commission  hereby  presents  to  the  European  Parliament  and  to  the  Council 
Draft Amending Budget No°6/2020 to the 2020 budget. 

CHANGES  TO  THE  STATEMENT  OF  REVENUE  AND  EXPENDITURE  BY 
SECTION 

The  changes  to  the  general  statement  of  revenue  and  section  III  are  available  on  EUR-Lex 
(https://eur-lex.europa.eu/budget/www/index-en.htm). 

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2  
3  
4  
5  
6  
7  

OJ L 193, 30.7.2018. 
OJ L 57, 27.2.2020. 
OJ L 126, 21.4.2020. 
OJ L 126, 21.4.2020. 
COM(2020) 180, 15.4.2020. 
COM(2020) 190, 30.4.2020. 
COM(2020) 421, 3.6.2020. 

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Table of Contents 

1. 

INTRODUCTION ....................................................................................................................................................... 3 

2.  A SOLVENCY SUPPORT WINDOW WITHIN THE EUROPEAN FUND FOR STRATEGIC 
INVESTMENTS (EFSI) ....................................................................................................................................................... 3 

3.  REINFORCEMENT OF THE EUROPEAN FUND FOR SUSTAINABLE DEVELOPMENT (EFSD) ............ 3 

4. 

5. 

6. 

7. 

SETTING UP THE NEW REACT-EU INITIATIVE .............................................................................................. 4 

INCREASING THE CAPITAL OF THE EUROPEAN INVESTMENT FUND (EIF) ........................................ 4 

FINANCING ................................................................................................................................................................ 5 

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

2 

 
 
 
 
EXPLANATORY MEMORANDUM 

1. 

INTRODUCTION 

The  purpose  of  Draft  Amending  Budget  (DAB)  No 6  for  the  year  2020  is  to  provide 
in  payment 
EUR 11 540,0 million 
appropriations to reflect the impact of the legislative proposals adopted by the Commission on 27, 28 
and 29 May in the framework of the European Union economic recovery package8 and complements 
the proposal to revise the Multiannual Financial Framework Regulation for 20209. 

in  commitment  appropriations  and  EUR 6 540,0 million 

2. 

A  SOLVENCY  SUPPORT  WINDOW  WITHIN  THE  EUROPEAN  FUND  FOR  STRATEGIC 
INVESTMENTS (EFSI) 

The  proposal  to  amend  the  EFSI  Regulation10  includes  the  creation  of  a  specific  solvency  support 
instrument,  that  will  mobilise  private  capital  to  support  the  solvency  of  companies  affected  by  the 
COVID-19 crisis with a view to restore normal operations and enhancing a sustainable and profitable 
business  track,  preserving  jobs  and  sustaining  the  competitiveness  of  European  enterprises.  The 
appropriations will increase the EFSI Guarantee fund, to support the guarantees granted under the new 
solvency support window, increase the envelope dedicated to the European Investment Advisory Hub 
and  the  European  Investment  Project  Portal  for  solvency  support  measures  and  allow  the  solvency 
support instrument to start already in 2020. 

Administrative support expenditure are proposed to finance risk analysis and reporting costs, setting 
up and monitoring of compliance rules and IT costs. 

Budget line 

Name 

Section III – Commission 
01 01 04 01 
01 04 05 02 
01 04 06 02 
Total 

Support expenditure for the European Fund for Strategic Investments (EFSI) 

EFSI Guarantee fund — Solvency Support Instrument Window 

EIAH and EIPP — Solvency Support Instrument Window 

Commitment 
appropriations 

Payment 
appropriations 

EUR 

2 000 000 
4 980 000 000 
18 000 000 
5 000 000 000 

2 000 000 
2 490 000 000 
8 000 000 
2 500 000 000 

REINFORCEMENT OF THE EUROPEAN FUND FOR SUSTAINABLE DEVELOPMENT (EFSD) 

3. 
An amendment of the EFSD Regulation11 was proposed within the framework of the response to the 
Covid-19 pandemic and its consequences. Providing additional funds to the EFSD under the current 
Multiannual  Financial Framework will increase its  capacity to  grant  guarantees in  partner countries,  
and thus facilitates a swift reply to the Covid-19 pandemic in these regions. The amendment extends 
the geographic scope to the Western Balkans and also extends the investment period during which the 
EFSD guarantee agreements to support financing and investment operations can be concluded by one 
year, until 31 December 2021. 

A limited amount of administrative and technical support expenditure is proposed for the extension of 
the  Regulation,  notably  for  the  amendment  of  EFSD  support  contracts  to  extend  their  scope  to  the 
Western Balkans12. 

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9  
10  
11  
12  

COM(2020) 456, 27.5.2020. 
COM(2020) 446, 28.5.2020. 
COM(2020) 404, 29.5.2020. 
COM(2020) 407, 28.5.2020. 
Administrative support to the EFSD is currently mainly financed by the European Development Fund. 

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Budget line 

Name 

Section III – Commission 
01 01 04 02 

01 03 08 02 

Total 

Support  expenditure  for  the  European  Fund  for  Sustainable  Development 
(EFSD) 
Provisioning  of  the  EFSD  Guarantee  Fund  —  Response  to  the  COVID-19 
outbreak 

Commitment 
appropriations 

Payment 
appropriations 

EUR 

1 000 000 

1 000 000 

1 039 000 000 

1 039 000 000 

1 040 000 000 

1 040 000 000 

SETTING UP THE NEW REACT-EU INITIATIVE 

4. 
Under the React-EU initiative13, Member States will be entitled to use additional amounts under the 
Investment for growth and jobs goal from the European Regional Development Fund (ERDF) or the 
European Social Fund (ESF) to support operations fostering crisis repair in the context of the COVID-
19 pandemic in the regions whose economy and jobs have been hit harder and preparing the recovery 
of their economies, or to voluntarily increase the allocation for programmes supported by the Fund for 
European Aid to the most deprived (FEAD). 

Budget line 

Name 

Section III – Commission 
04 02 59 
04 02 63 03 

04 06 03 01 
04 06 03 02 
13 03 59 

13 03 65 03 

Total 

European Social Fund — Financing under REACT-EU 

European  Social  Fund  —  Operational  technical  assistance  —  Financing 
under REACT-EU 
FEAD — Operational expenditure — Financing under REACT-EU 

FEAD — Operational technical assistance — Financing under REACT-EU 

European  Regional  Development  Fund  (ERDF)  —  Financing  under 
REACT-EU 
European  Regional  Development  Fund  (ERDF)  —  Operational  technical 
assistance — Financing under REACT-EU 

Commitment 
appropriations 

Payment 
appropriations 

EUR 

1 494 750 000 
5 250 000 

p.m. 
p.m. 
3 487 750 000 

747 375 000 
2 625 000 

p.m. 
p.m. 
1 743 875 000 

12 250 000 

6 125 000 

5 000 000 000 

2 500 000 000 

Due  to  the  extraordinary  nature  of  the  circumstances,  specific  rules  for  the  implementation  of  the 
React-EU  appropriations  (significant  level  of  initial  pre-financing,  100%  EU  co-financing)  are 
proposed.  It  is  necessary  that  these  resources  are  programmed  under  one  or  more  new  dedicated 
priority  axes  or,  where  appropriate,  under  a  new  dedicated  operational  programme.  The  budgetary 
structure will be adjusted accordingly: 3 new budget lines will be created under title 04 Employment, 
social affairs and inclusion for ESF, FEAD and under title 13 Regional and urban policy for ERDF in 
order to allow transparent implementation and reporting of the React-EU initiative. The split between 
the  ESF  and  ERDF  lines  is  indicative  as  the  final  allocation  per  Fund  will  be  known  when  the 
programmes are adopted. 

5. 

INCREASING THE CAPITAL OF THE EUROPEAN INVESTMENT FUND (EIF) 

The Commission and the European Investment Fund will increase their collaboration and the EIF is 
responsible  for  implementing  additional  guarantee  amounts  covered  by  the  EU  Budget  under  the 
Union economic recovery package. In order to maintain its financial capacity and to preserve its high 
grade profile in the financial markets, it has become essential that the capital of the EIF is increased. 
The European Union should participate in such increase in line with its long lasting engagement with 
the EIF. The appropriations will be used to participate in the capital increase envisaged by the EIF in 
2020.  

13  

COM(2020) 451, 27.5.2020. 

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Once  the  capital  increase  of  the  EIF  is  confirmed  by  the  Governing  board,  the  Commission  will 
present a proposal for a Decision of the European Parliament and of the Council on the participation 
of the European Union in the capital increase of the EIF. Pending the adoption of this Decision, the 
related appropriations will be put in the budget as a provision in line with Article 49 of the Financial 
Regulation. 

Budget line 

Name 

Section III – Commission 

40 02 41 

01 04 01 04 

Total 

Differentiated  appropriations  (Reserve  for  budget  item  01  04  01  03  – 
European  Investment  Fund  —  European  Investment  Fund  —  Provision  of 
paid-up  shares  of  subscribed  capital  to  provide  support  to  the  European 
economy  and  its  recovery,  in  particular  to  small  and  medium-sized 
enterprises) 
European  Investment  Fund  —  Callable  portion  of  subscribed  capital  to 
provide support to the European economy and its recovery, in particular to 
small and medium-sized enterprises 

Commitment 
appropriations 

Payment 
appropriations 

EUR 

p.m. 
500 000 000 

p.m. 
500 000 000 

p.m. 

p.m. 

500 000 000 

500 000 000 

6. 

FINANCING 

Given that nearly all margins under the MFF ceilings and availabilities of special instruments for 2020 
were exhausted after the proposed Draft Amending Budget  No 5, the only possibility to  finance the 
launch of the recovery plan for Europe in  2020 is  to  increase the commitment ceilings  for 2020 for 
sub-Headings 1a and 1b and Heading 4 as proposed in the revision of the MFF Regulation for 2020. 
This  Draft  Amending  Budget,  which  can  only  be  finally  adopted  after  the  adoption  of  the  MFF 
revision,  will  then  be    financed  within  the  increased  ceilings  without  recourse  to  any  special 
instruments. 

The proposed revision of the MFF Regulation increases the commitment ceilings and therefore does 
not apply to the UK as 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 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. 
Consequently this draft amending budget 6 does not create any new rights or obligations for the UK: 
the  UK  will  not  contribute  to  its  financing  of  this  DAB  and  will  not  benefit  from  any  of  the 
programmes reinforced through it nor receive reimbursement from the investments made under it. In 
order to ensure full transparency dedicated budget lines are proposed to be created for all additional 
appropriations proposed in this DAB. 

The financing tables in the budgetary annex set out the financing of this amending budget by EU 27. 

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7. 

SUMMARY TABLE BY MFF HEADING 

Heading 

(incl. AB 1-2 & DAB 3-5/2020) 

Budget 2020 

Draft Amending Budget 6/2020 

In EUR 

Budget 2020 

(incl. AB 1-2 & DAB 3-6/2020) 

1.  Smart and inclusive growth 

83 930 597 837 

72 353 828 442 

10 500 000 000 

5 500 000 000 

94 430 597 837 

77 853 828 442 

CA 

PA 

CA 

PA 

CA 

PA 

Ceiling  

Margin 

83 661 000 000 

94 161 000 000 

1a  Competitiveness for growth and jobs 

25 284 773 982 

22 308 071 592 

5 500 000 000 

3 000 000 000 

30 784 773 982 

25 308 071 592 

Of which under global margin for commitments 

 93 773 982 

Ceiling 

Margin 

25 191 000 000 

 93 773 982 

30 691 000 000 

1b   Economic  social and territorial cohesion 

58 645 823 855 

50 045 756 850 

5 000 000 000 

2 500 000 000 

63 645 823 855 

52 545 756 850 

Of which under global margin for commitments 

 175 823 855 

Ceiling 

Margin 

58 470 000 000 

 175 823 855 

63 470 000 000 

2.  Sustainable growth: natural resources 

59 907 021 051 

57 904 492 439 

59 907 021 051 

57 904 492 439 

Ceiling 

60 421 000 000 

Of which offset against Contingency margin 

- 465 323 871 

Margin 

 48 655 078 

60 421 000 000 

- 465 323 871 

 48 655 078 

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

43 410 105 687 

43 380 031 798 

43 410 105 687 

43 380 031 798 

Sub-ceiling 
Rounding difference excluded from margin 
calculation 
Of which offset against Contingency margin 

43 888 000 000 

  888 000 

- 428 351 235 

EAGF Margin 

 48 655 078 

43 888 000 000 

  888 000 

- 428 351 235 

 48 655 078 

3.  Security and citizenship 

7 152 374 489 

5 278 527 141 

7 152 374 489 

5 278 527 141 

Of which under Flexibility Instrument 

1 094 414 188 

Of which under global margin for commitments 

2 392 402 163 

Of which under Contingency margin 

 714 558 138 

Ceiling 

Margin 

2 951 000 000 

1 094 414 188 

2 392 402 163 

 714 558 138 

2 951 000 000 

4.  Global Europe 

10 991 572 239 

9 112 061 191 

1 040 000 000 

1 040 000 000 

12 031 572 239 

10 152 061 191 

Of which under Contingency margin 

 481 572 239 

Ceiling 

Margin 

10 510 000 000 

 481 572 239 

11 550 000 000 

5.  Administration 

10 271 193 494 

10 274 196 704 

10 271 193 494 

10 274 196 704 

Of which offset against Contingency margin 

- 982 806 506 

Ceiling 

11 254 000 000 

11 254 000 000 

- 982 806 506 

Of which: Administrative expenditure of the 
institutions 

Margin 

7 955 303 132 

7 958 306 342 

7 955 303 132 

7 958 306 342 

Of which offset against Contingency margin 

- 982 806 506 

Sub-ceiling 

9 071 000 000 

Margin 

 132 890 362 

9 071 000 000 

- 982 806 506 

 132 890 362 

Total 

172 252 759 110 

154 923 105 917 

11 540 000 000 

6 540 000 000 

183 792 759 110 

161 463 105 917 

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

1 094 414 188 

1 017 029 444 

1 094 414 188 

1 017 029 444 

2 662 000 000 

1 196 130 377 

2 662 000 000 

1 196 130 377 

Ceiling 

168 797 000 000 

172 420 000 000 

180 337 000 000 

172 420 000 000 

Of which offset against Contingency margin 

-1 448 130 377 

   Other special Instruments 

 860 261 208 

 690 998 208 

Margin 

 48 655 078 

18 513 923 527 

-1 448 130 377 

 48 655 078 

11 973 923 527 

 860 261 208 

 690 998 208 

Grand Total 

173 113 020 318 

155 614 104 125 

11 540 000 000 

6 540 000 000 

184 653 020 318 

162 154 104 125 

6