AMENDING LETTER No 1 TO THE DRAFT GENERAL BUDGET 2021 Adjustments resulting from the recent political agreement between the European Parliament and the Council on the Multiannual Financial Framework 2021-2027 Updated estimated needs for agricultural expenditure Other adjustments and technical updates
Date: 2020-11-16
Institutions: Directorate-General for Budget, European Commission
Subjects: agricultural expenditure, amending budget, commitment of expenditure, draft budget (EU), financial year, general budget (EU), multiannual financial framework

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 16.11.2020  COM(2020) 748 final 2020/330 (BUD)  CORRIGENDUM This document replaces COM(2020) 748 final of 13.11.2020 Addition of the interinstitutional reference. Concerns the EN version only  The text shall read as follows: AMENDING LETTER No 1 TO THE DRAFT GENERAL BUDGET 2021 Adjustments resulting from the recent political agreement between the European Parliament and the Council on the Multiannual Financial Framework 2021-2027     Updated estimated needs for agricultural expenditure     Other adjustments and technical updates                                
 
 
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) 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 42 thereof, 

the  draft  general  budget  of  the  European  Union  for  the  financial  year  2021,  as 
adopted by the Commission on 27 July 20202, 

The  European  Commission  hereby  presents  to  the  European  Parliament  and  to  the  Council 
Amending  Letter  No 1  to  the  draft  general  budget  of  the  European  Union  for  the  financial 
year 2021, for the reasons set out in the explanatory memorandum. 

CHANGES  TO  THE  STATEMENT  OF  REVENUE  AND  EXPENDITURE  BY 
SECTION 

The changes to the general statement of expenditure and revenue as well to the statements of 
revenue  and 
(https://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. 

section  are  available  on  EUR-Lex 

expenditure  by 

1  
2 

OJ L 193, 30.7.2018, p. 1. 
COM(2020) 300 final, 27.7.2020. 

1 

 
 
 
 
                                                 
TABLE OF CONTENTS 

1. 
2. 

INTRODUCTION ................................................................................................................................... 3 
IMPACT OF THE AGREEMENT ON THE NEXT MFF ON THE DRAFT BUDGET 2021 ........ 4 
2.1   ADJUSTMENTS RESULTING FROM THE EUCO AGREEMENT OF JULY 2020 ........................................... 4 
2.1.1  ENVELOPES OF SPENDING PROGRAMMES ..................................................................................................... 4 
2.1.1  ENVELOPES OF THEMATIC SPECIAL INSTRUMENTS ........................................................................................ 6 
2.2   ADJUSTMENTS RESULTING FROM THE POLITICAL AGREEMENT OF 10 NOVEMBER 2020 ...................... 6 
2.3   UPDATED NEEDS FOR PAYMENTS APPROPRIATIONS ................................................................................ 7 
2.3.1 NON-ADOPTION OF THE “BRIDGING SOLUTION” IN 2020 .............................................................................. 7 
2.3.2 IMPACT LINKED TO AMENDING BUDGET NO 6/2020 (VACCINES STRATEGY) .................................................. 8 
2.3.3 CHANGES TO THE PRE-FINANCING RATES FOR THE EUROPEAN STRUCTURAL INVESTMENT (ESI) FUNDS 2014-

2020 .......................................................................................................................................................... 8 
2.3.4 OTHER REASSESSMENT OF PAYMENTS ........................................................................................................... 8 
2.4   ADJUSTED SCOPE OF MFF HEADINGS AND IMPACT ON THE NOMENCLATURE STRUCTURE ................ 10 
2.5   REVISED DISTRIBUTION OF “NEXT GENERATION EU” BETWEEN GRANTS AND LOANS ...................... 10 
PARTICIPATION OF THE UNION IN THE CAPITAL INCREASE OF THE EUROPEAN 

3. 
INVESTMENT FUND (EIF) ............................................................................................................................. 11 
EUROPEAN AGRICULTURAL GUARANTEE FUND (EAGF) ................................................... 12 
4. 
DELEGATION PACKAGE FOR THE SIX EXECUTIVE AGENCIES ........................................ 13 
5. 
5.1   SUBMISSION TO THE COMMITTEE ON EXECUTIVE AGENCIES .............................................................. 13 
5.2   PROPOSED LEVEL OF OPERATIONAL APPROPRIATIONS 2021-2027 TO BE DELEGATED ....................... 14 
5.3   IMPACT ON HUMAN AND FINANCIAL RESOURCES IN THE EXECUTIVE AGENCIES IN 2021 .................... 14 
 IMPACT ON HUMAN RESOURCES IN THE COMMISSION ......................................................................... 15 
5.4 
 ADJUSTMENTS INCLUDED IN AL 1/2021 ............................................................................................... 15 
5.5 
DECENTRALISED AGENCIES ........................................................................................................ 17 
6.1   EUROPEAN MEDICINES AGENCY (EMA) .............................................................................................. 17 
6.2 
 EUROPEAN CENTRE FOR DISEASE PREVENTION AND CONTROL (ECDC) .......................................... 17 
6.3   EUROPEAN ENVIRONMENTAL AGENCY (EEA) ..................................................................................... 18 
6.4   EUROPEAN CHEMICALS AGENCY (ECHA) ........................................................................................... 18 
6.5   EUROPEAN BANKING AUTHORITY (EBA) ............................................................................................. 18 
6.6   EUROPEAN ASYLUM SUPPORT OFFICE (EASO) ................................................................................... 18 
ADJUSTMENTS TO THE HEADING 7 “EUROPEAN PUBLIC ADMINISTRATION” ........... 18 
7.1 
 SALARY INDEXATION AS FROM 1 JULY 2020 ........................................................................................ 18 
 REINFORCEMENT OF THE EUROPEAN PARLIAMENT ............................................................................ 19 
7.2 
7.4   TRANSFER OF CERTAIN STAFF IN UNION DELEGATIONS FROM THE COMMISSION TO THE EEAS ..... 21 
7.5   TRANSFER OF THE CENTRAL LIBRARY FROM THE COMMISSION TO THE PUBLICATIONS OFFICE .... 22 
7.6   TRANSFER OF 2 ESTABLISHMENT PLAN POSTS FROM THE EUROPEAN PARLIAMENT TO THE 

6. 

7. 

COMMISSION .......................................................................................................................................... 22 
7.7  EEAS CONTRIBUTION FOR THE PROVISION OF BASELINE SERVICES BY PMO .................................... 22 
7.8 
IMPACT OF THE COVID-19 PANDEMIC ON THE BUDGET OF THE EUROPEAN SCHOOLS ..................... 22 
7.9   IMPACT OF THE RELOCATION OF THE OMBUDSMAN’S BRUSSELS OFFICE ........................................... 22 
OTHER ADJUSTMENTS ................................................................................................................... 23 
8.1   TARGETED REINFORCEMENTS ............................................................................................................... 23 
8.1.1  SUPPORT TO THE TURKISH-CYPRIOT COMMUNITY ..................................................................................... 23 
8.1.2  SOCIAL DIALOGUE..................................................................................................................................... 23 
8.2   ADAPTATION OF THE NOMENCLATURE ................................................................................................. 23 
8.2.2  SINGLE MARKET PROGRAMME................................................................................................................... 24 
8.2.3  SOCIAL POLICY (INCLUDING SOCIAL DIALOGUE) ......................................................................................... 24 
8.2.4 EXTENSION OF THE EUROPEAN HIGH PERFORMANCE COMPUTING JOINT UNDERTAKING (EUROHPC) ....... 25 
8.2.5  CREATION OF NEW BUDGET LINES FOR THE TWO CONSULTATIVE BODIES ..................................................... 25 
8.2.6  DELETION OF BUDGET LINES IN THE SECTION OF THE EUROPEAN DATA PROTECTION SUPERVISOR .............. 25 
8.3   TECHNICAL UPDATES ............................................................................................................................. 25 
8.3.1  MODIFICATION OF THE ESTABLISHMENT PLANS FURTHER TO THE RECOURSE TO ARTICLE 53(1) OF THE 

FINANCIAL REGULATION ........................................................................................................................... 25 
8.3.1 MODIFICATION OF THE TEXT OF SOME BUDGET REMARKS ........................................................................... 25 
SUMMARY TABLE BY MFF HEADING ......................................................................................... 26 

8. 

9. 

2 

 
 
 
1. 

INTRODUCTION 

Amending  Letter  No 1  (AL 1/2021)  to  the  draft  budget  for  the  year  2021  (DB 2021)  covers  the 
following elements: 

  The incorporation of the agreement reached between the European Parliament and the Council on 
the next Multiannual Financial Framework 2021-2027 (“MFF”) in the trilogue on 10 November. 
This outcome builds on the agreement reached during the Special European Council (EUCO) of 
17-21  July3  and  impacts  a  number  of  spending  programmes  and  special  instruments  in  terms  of 
level  of appropriations,  structure of headings  and nomenclature as well as the content of budget 
remarks  (in  particular  as  regards  the  contribution  of  the  plan  for  European  Recovery,  “Next 
Generation EU”). 

  The  updating  of  the  estimated  needs,  assigned  revenue  and  appropriations  for  agricultural 
expenditure.  In  addition  to  changing  market  factors,  AL 1/2021  also  incorporates  the  impact  of 
decisions in the agricultural sector since the DB 2021 was adopted in July 2020, as well as other 
proposals expected to have a significant effect during the budget year; 

  Adjustments  resulting  from  the upcoming  submission  to  the Committee on Executive Agencies4 
for opinion, and to the Council and European Parliament for a six week scrutiny, of the proposal 
of a single establishment act setting out the major components of the mandate and tasks entrusted 
to  the  new  generation  of  executive  agencies  as  from  2021.  These  adjustments,  in  terms  of 
nomenclature,  appropriations  and  establishment  plans,  are  still  based  on  the  agreement  reached 
during the Special European Council (EUCO) of 17-21 July and will be further updated to reflect 
the political agreement on the next MFF once the single establishment act is finalised; 

  Adjustments  to  the  level  of  appropriations  and/or  staff  of  some  decentralised  agencies  (EMA, 
ECDC,  ECHA,  EEA,  EBA  and  EASO)  taking  into  account  the  latest  legislative  or  political 
developments  on  their  operations  for  2021  and  in  particular  the  impact  of  the  proposed  “Health 
Package” tabled by the Commission on 11 November; 

  Adjustments  to  the  heading  7  “European  Public  Administration”,  including  the  impact  of  the 
reduction of the salary update rate as of 1 July 2020 used for the DB 2021 from 0,9 % to 0,7 % 
and the reinforcement of the European External Action Service (EEAS) for the governance of the 
off-budget European Peace Facility (EPF) as well as strengthening the consular services); and 

  Other adjustments and technical updates, including to the structure of the budget (nomenclature). 

Overall,  the  net  impact  of  AL 1/2021  on  expenditure  in  the  DB 2021  is  a  decrease  of 
EUR 2 608,8 million  in  commitment  appropriations  and  an  increase  of  EUR 2 609,3 million  in 
payment appropriations, which can be broken down into the following components: 

Programme 

Adjustments resulting from the EUCO agreement of July 2020 

On spending programmes 
On thematic special instruments 

Adjustments resulting from the political agreement of 10 November 
2020 
Changes to the pre-financing rates for the European Structural 
Investment (ESI) funds 2014-2020 
Non-adoption of the “bridging solution” in 2020 
Impact linked to AB No6/2020 (DAB No8/2020 - ESI - vaccines 
strategy) 

Commitment 
appropriations 

(In EUR million) 
Payment 
appropriations 

-749,4 
-2 172,4 

249,4 

- 

- 

- 

189,9 
-368,4 

151,3 

3 605,6 

-775,0 

-700,0 

3  
4  

EUCO 10/20, 21.7.2020. 
Council Regulation (EC) No 58/2003 of 19 December 2002 laying down the statute for executive agencies to be 
entrusted with certain tasks in the management of Community programmes (OJ L 11, 16.1.2003, p. 1). 

3 

 
 
 
 
 
  
  
                                                 
Programme 

Reassessment of payment needs (including for completion of 
outstanding commitments) 
Updates for decentralised agencies (new initiatives) 
Adjustments under heading 7 
Other adjustments 
Total 

Commitment 
appropriations 

(In EUR million) 
Payment 
appropriations 

- 

46,8 
5,9 
11,0 
-2 608,8 

448,8 

46,8 
5,9 
4,4 
2 609,3 

More information on each component is provided in the following sections.  

The relevant budget lines and staff establishment plans are detailed in the budgetary annex, together 
with  the  update  of  the  revenue  resulting  from  the  expenditure  changes  included  in  this  Amending 
letter. 

2. 

IMPACT OF THE AGREEMENT ON THE NEXT MFF ON THE DRAFT BUDGET 2021  

2.1  

Adjustments resulting from the EUCO agreement of July 2020 

2.1.1   Envelopes of spending programmes 

The envelopes of 20 spending programmes, listed in the table below, have first been adjusted to reflect 
the EUCO agreement of July 2020. Adjustments were applied proportionately, for both commitments 
and payments, to the level of appropriations requested in the DB 2021 for each budget line5, with the 
exception of the following programmes: 

  For InvestEU, the adjustment takes into account the capital increase of the European Investment 
Fund  (EIF)  in  which  the  Union  should  participate  in  2021  to  maintain  its  overall  share.  This 
operation is presented in more details under section 3 below;  

  For the European Agricultural Guarantee Fund (EAGF), the adjustment considers the most up-to-

date economic data and legislative framework as described in section 4 below; 

  For the European Agricultural  Fund for Rural  Development  (EAFRD), the adjustment considers 
(a)  the  agreement  between  Council  and  European  Parliament  for  a  two-year  transitional  period 
including the implementation of Next Generation EU as of 2021, (b) the revised amounts for the 
transfers between the EAGF and EAFRD following the notifications received from Member States 
and  (c)  the  financial  impact  of  the  decision  of  the  co-legislators  increasing  the  lump-sum 
exceptional support that Member States can provide to farmers in response to COVID-196 as well 
as the estimated needs based on the most recent Member States’ forecasts; 

  For  the  Asylum  and  Migration  Fund  (AMF),  the  Instrument  for  financial  support  for  border 
management  and  visa  (BMVI,  within  the  Border  Management  Fund)  and  the  Internal  Security 
Fund (ISF), the adjustment includes an increased level of pre-financing of 5 %; 

5  

6  

The  necessary  level  of  appropriations  for  administrative  support  lines  has  been  reassessed  specifically  for  each 
programmes and, as a result, not systematically included in the proportional adjustments. 
Regulation (EU) 2020/872 of  the European Parliament and of the Council of 24 June 2020 amending Regulation 
(EU) No 1305/2013 as regards a specific measure to provide exceptional temporary support under the European 
Agricultural Fund for Rural Development (EAFRD) in response to the COVID-19 outbreak. 

4 

 
 
 
 
 
 
 
                                                 
  For the Neighbourhood, Development and International Cooperation Instrument (NDICI) and the 
instrument for Pre-Accession Assistance (IPA III), further adjustments are considered in relation 
to: 

o  The Erasmus+ contribution: as a result of the delay in the adoption of the sectoral legislation 
there  will  be  no  international  student  exchanges  under  Erasmus+  in  2021.  For  both 
programmes combined, EUR 23,5 million in commitment appropriations and EUR 5,3 million 
in  payment  appropriations  are  proposed  to  cover  actions  linked  to  Capacity  Building  in  the 
field  of  Youth  and  Virtual  Exchanges,  which  do  not  follow  the  academic  year  calendar. 
Compared  to  the  DB 2021,  this  represents  a  total  decrease  of  -EUR 281,6 million  in 
commitment appropriations7 and -EUR 152 million in  payment appropriations; 

o  The  continued  application  of  the  provisioning  rules  in  the  Guarantee  Fund  Regulation 
480/2009  for  the  current  budgetary  guarantees  and  financial  assistance  (mainly  the  External 
Lending  Mandate  and  Macro-Financial  Assistance  Decisions)  is  neutral  in  commitment 
appropriations  at  the  level  of  the  programmes8  but  results  in  an  increase  in  payment 
appropriations of EUR 42,3 million; 

o  The transfer of certain staff in Union delegations to the EEAS results in an overall decrease of 
EUR 16 million and EUR 2,1 million in commitment and payment appropriations respectively 
for NDICI and IPA III, but fully offset by a corresponding increase within the section of the 
EEAS, under heading 7 (see section 7.4 below for more details); 

o  The  original  proposal  for  the  European  Fund  for  Sustainable  Development  (EFSD)  in  Draft 
Amending  Budget  No6/20209  included  an  exceptional  top-up  of  EUR 1,04 billion  for  2020. 
This  exceptional  top-up  was  accompanied,  in  the  DB 2021,  by  10  additional  full-time 
equivalents  (FTEs)  of  external  staff  to  work  on  the  EFSD,  paid  by  NDICI  and  IPA III 
administrative support lines in delegations. As the exceptional top-up of EFSD was not part of 
the EUCO agreement of July 2020, the increase of external staff has become unnecessary. The 
administrative  support  lines  of  NDICI  and  IPA III  have  been  decreased  accordingly 
(EUR 1,5 million) with a corresponding additional allocation to the operational lines; 

o  The  external  staff  working  for  the  current  European  Development  Fund  –  the  activities  of 
which  were  integrated  into  the  NDICI  with  the  DB 2021.  A  total  of  6,25  FTEs  of  these 
external staff in headquarters and in delegations working for the African Peace Facility will, as 
from  2021,  be  transferred  to  the  off-budget  European  Peace  Facility.  The  administrative 
support line of NDICI has been decreased accordingly (EUR 0,4 million) with a corresponding 
additional allocation to the operational lines. 

Programme 

Horizon Europe 
InvestEU Fund (including completion of EFSI) 
Connecting Europe Facility —Transport 
Digital Europe Programme 
European Regional Development Fund (ERDF) 
Cohesion Fund (CF) 
Financing cost of the European Union Recovery Instrument (EURI) 
EU4Health 
European Social Fund (ESF) 
Erasmus+ 

Commitment 
appropriations 
-758,0 
551,0 
-227,3 
-234,1 
497,5 
284,1 
-108,7 
232,0 
259,5 
-397,9 

(In EUR million) 
Payment 
appropriations 
-87,9 
243,2 
-5,8 
-21,8 
21,7 
11,8 
-108,7 
55,9 
10,4 
-304,1 

7  

8  

9  

The  reductions  in  commitment  appropriations  are  offset  within  the  IPA  and  NDICI  (geographic  pillar) 
programmes. 
The increase in commitment appropriations is offset by a corresponding decrease of EFSD+ provisioning in 2021, 
which will be compensated by an increase of EFSD+ provisioning in 2022-2027. 
COM(2020) 423 final, 3.6.2020. 

5 

 
 
 
 
 
                                                 
Programme 

European Agricultural Guarantee Fund (EAGF) 
European Agricultural Fund for Rural Development (EAFRD) 
European Maritime and Fisheries Fund (EMFF) 
Just Transition Fund 
Asylum and Migration Fund (AMF) 
Integrated Border Management Fund (IBMF) 
Internal Security Fund (ISF) 
European Defence Fund 
Neighbourhood, Development and International Cooperation 
Instrument (NDICI) 
Instrument for Pre-Accession Assistance (IPA III) 
Total 

Commitment 
appropriations 
188,9 
342,1 
-70,3 
-379,0 
-230,2 
-491,3 
-52,5 
-101,7 

(In EUR million) 
Payment 
appropriations 
188,9 
307,1 
-0,5 
0,0 
74,6 
-51,3 
-9,3 
-3,0 

-5,8 

-47,6 
-749,4 

-113,0 

-18,4 
189,9 

2.1.1   Envelopes of thematic special instruments 

The changes to the envelopes of the thematic special instruments comprise: 

  The adjustment of the annual envelope of the Solidarity and Emergency Aid Reserve (SEAR) 
to  EUR  1 273,5 million  (corresponding  to  EUR 1 200 million,  in  2018  prices),  both  in 
commitment and payment appropriations; 

  The adjustment of the annual envelope of the European Globalisation Adjustment Fund (EGF) 
to  EUR 197,4 million  (corresponding  to  EUR 186 million,  in  2018  prices)  in  commitment 
appropriations  with  no  change  to  the  level  of  payment  appropriations  compared  to  the 
DB 2021; 

  The creation of two new specific budget lines10 for the Brexit Adjustment Reserve (BAR) but 
without appropriations – pending the proposal that the Commission is expected to table in the 
course of November 2020. 

2.2  

Adjustments resulting from the political agreement of 10 November 2020 

In their political agreement of 10 November 2020 on the next MFF, the European Parliament and the 
Council agreed, amongst others, on targeted reinforcements of Union programmes, including Horizon 
Europe, EU4Health and Erasmus.  

For these three programmes, the following reinforcements are incorporated in AL 1/2021: 

Programme 

Horizon Europe 
EU4Health 
Erasmus+ 
Total 

Commitment 
appropriations 
75,8 
74,3 
175,1 
325,2 

(In EUR million) 
Payment 
appropriations 
3,0 
15,3 
133,1 
151,3 

For  Horizon  Europe  the  additional  EUR 75,8 million  in  commitment  appropriations  will  be  made 
available again through the recourse to the Article 15.3 of the Financial Regulation as a result of total 
or partial non-implementation of past research projects.  

10  

One  budget  line  under  the  title  30  “Reserves”  and  one  budget  line  under  the  title  17  “Expenditure  outside  the 
annual  ceilings  set  out  in  the  Multiannual  Financial  Framework“,  based  on  the  model  already  applied  for  the 
EGF. 

6 

 
 
 
 
 
 
 
 
 
                                                 
The following budget lines will be reinforced and the budgetary remarks adjusted accordingly: 

Budget lines 

Cluster Health 
Cluster Digital, Industry and Space 
Cluster Climate, Energy and Mobility 
Cluster Food, Bioeconomy, Natural Resources, Agriculture and 
Environment 

01 02 02 10 
01 02 02 40 
01 02 02 50 

01 02 02 60 

Total 

(in Eur) 
Commitment 
appropriations 
12 886 000 
12 886 000 
25 014 000 

25 014 000 

75 800 000 

With  the  reinforcements  of  EU4Health  and  Eramus+  (EUR  249,4 million),  the  total  appropriations 
requested  under  heading  2b  Resilience  and  Values  in  2021  exceed  the  ceiling  agreed  by  EUR 
97,8 million. The Flexibility Instrument is therefore proposed to be mobilised for this amount.   

2.3  

Updated needs for payments appropriations 

2.3.1  Non-adoption of the “bridging solution” in 2020 

On  3  June  2020,  the  Commission  proposed  in  DAB  No 6/2020  to  reflect  in  the  budget  2020  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 package11. DAB No 6/2020  accompanied the 
proposal to revise the Multiannual Financial Framework Regulation for 202012. 

As this initiative, referred to as the “bridging solution”, has become obsolete, its impact on the level of 
payment appropriations for 2021 (EUR 775 million) is proposed to be cancelled in AL 1/2021. 

This reduction concerns the following programmes: 

  The  InvestEU  programme  in  which  the  completion  payments  of  the  current  European  Fund  for 
Strategic Investment (EFSI) will be incorporated as from 2021. The “bridging solution” foresaw 
the  creation,  within  EFSI,  of  a  specific  window  for  the  Solvency  Support  Instrument,  for  which 
payment appropriations for an amount of EUR 500 million were included in the DB 2021. 

  The  European  Regional  Development  Fund  (ERDF)  and  the  European  Social  Fund  (ESF),  for 
which payment appropriations for a total of EUR 275 million were included in the DB 2021 in the 
framework of the REACT-EU initiative13, also part of the “bridging solution”. 

DAB  No  6/2020  also  included  the  creation  of  new  budget  lines  in  the  budget  2020,  some  of  them 
continuing  in  2021.  As  a  consequence  of  the  non-adoption  of  the  ‘bridging  solution’  the  budget 
nomenclature  needs  to  be  adapted  and  some  budget  lines  be  deleted  or  transferred  as  shown  in  the 
table below: 

02 01 04 

02 05 02 01 

02 05 02 02 

02 05 03 01 

02 05 03 02 

Nomenclature in DB 2021 
Support expenditure for the "European 
Fund for Strategic Investments" 
EFSI Guarantee — Infrastructure and 
Innovation Window (IIW) and SME 
Window (SMEW) 
 EFSI Guarantee — Solvency Support 
Instrument Window 
EIAH and EIPP — Infrastructure and 
Innovation Window (IIW) and SME 
Window (SMEW) 
EIAH and EIPP — Solvency Support 
Instrument Window 

11  
12  
13  

COM(2020) 456 final, 27.5.2020. 
COM(2020) 446 final, 28.5.2020. 
COM(2020) 451 final, 28.5.2020. 

Nomenclature in AL 1/2021 

deleted 

02 02 99 12 
(new) 

Completion of the "European Fund for 
Strategic Investments (EFSI)" 

deleted 

02 02 99 12 
(new) 

Completion of the "European Fund for 
Strategic Investments (EFSI)" 

deleted 

7 

 
 
 
 
 
  
  
  
  
                                                 
Impact linked to Amending Budget No 6/2020 (vaccines strategy) 

2.3.2 
Amending  Budget  No 6/202014  increased  the  level  of  payment  appropriations  in  2020  for  the 
Emergency  Support  Instrument  (ESI)  by  EUR 1 090 million  in  order  for  the  COVID-19  vaccines 
strategy  to  reach  a  total  of  EUR 2 610 million,  while  the  total  commitments  were  set  at 
EUR 2 700 million in 2020 in Amending Budget No 2/202015.  

As a result, the level of payment appropriations for 2021 needs to be reduced to EUR 90 million. This 
represents  a  decrease  of  EUR 700 million  compared  to  the  DB 2021,  which  was  based  on  a  longer 
payment profile, i.e. EUR 790 million in 2021 and EUR 265 million in both 2022 and 2023. 

2.3.3  Changes to the pre-financing rates for the European Structural Investment (ESI) funds 2014-

2020 

In  2018,  the  Commission  proposed16  to  amend  Regulation  (EU)  No 1303/2013  (the  Common 
Provisions Regulation) and to reduce the annual pre-financing for years 2021-2023 from 3 % to 1 % 
of  the  total  support  provided  by  the  European  Regional  Development  Fund  (ERDF),  the  Cohesion 
Fund (CF), the European Social Fund (ESF) and the European Maritime and Fisheries Fund (EMFF). 
The budgetary effect of this proposal was included in the DB 2021. 

On  4  April  2019,  the  European  Parliament  adopted  its  legislative  resolution  that  amended  the 
Commission’s  proposal  by  setting  the  annual  pre-financing  rate  at  2 %  for  the  period  2021-23.  The 
EUCO agreement of July 2020 also retained the same percentage. 

As a result, an overall increase of EUR 3,6 billion in payment appropriations is included in AL 1/2021 
for the ESI Funds, which is equivalent to 1 % of the total 2021-27 allocation for the ERDF, the CF, 
the ESF and the EMFF. 

Programme 

European Regional Development Fund (ERDF) 
Cohesion Fund (CF) 
European Social Fund (ESF) 
European Maritime and Fisheries Fund (EMFF) 
Total 

2.3.4  Other reassessment of payments 

Commitment 
appropriations 
- 
- 
- 
- 
0,0 

(In EUR million) 

Payment 
appropriations 
1 996,6 
622,2 
929,9 
56,9 
3 605,6 

The Commission has reassessed the needs in payment appropriations (on top of the updates resulting 
from the adjusted envelopes mentioned above). The following seven programmes are concerned by a 
total net increase of EUR 448,8 million and, except for the Justice, Rights & Values  programme (for 
which  the  minor  increase  is  a  technical  correction),  the  reassessment  relates  to  payments  for  the 
completion of outstanding commitments. 

Programme 

Neighbourhood, Development and International Cooperation 
Instrument (NDICI) 
Instrument for Pre-Accession Assistance (IPA III) 
Union Civil Protection Mechanism (RescEU) 
Support to the Turkish-Cypriot Community 
Justice, Rights & Values 

(In EUR million) 

Commitment 
appropriations 

Payment 
appropriations 

- 

- 
- 
- 
- 

372,0 

120,0 
131,8 
7,0 
6,8 

14  

15  
16  

Adopted  by  the  European  Parliament  on  17  September  2020  but  pending  publication  in  the  Official  Journal 
(tabled as Draft Amending Budget No 8/2020 by the Commission on 28 August 2020). 
Adopted by the European Parliament on 17 April 2020 (OJ L 126, 21.4.2020). 
COM(2018) 614 final, 7.9.2018. 

8 

 
 
 
 
 
 
 
                                                 
Programme 

(In EUR million) 

Commitment 
appropriations 

Payment 
appropriations 

Connecting Europe Facility —Transport (incl. contribution from the 
Cohesion Fund and Military mobility) 
InvestEU 
Total 

- 

- 
0,0 

-155,0 

-33,7 
448,8 

  NDICI  and  IPA III:  Following  the  publication  of  the  Joint  Communication  on  the  Global  EU 
Response to Covid-1917, in which the Union expressed solidarity and commitment to help partner 
countries deal with the health, economic and social consequences of the COVID-19 crisis as part 
of  the  Team  Europe  efforts,  reprogramming  has  taken  place  and  the  implementation  of  the 
assistance  to  third  countries  accelerated,  which  will  continue  in  2021.  Taking  into  account  the 
Union’s  political  commitments  to  third  countries  and  contractual  obligations  such  as  payments 
deadlines, an increased  need for payment appropriations of EUR 492 million  has been identified 
due  to  modified  modalities  for  budget  support  disbursements,  increased  pre-financing  and  faster 
implementation under indirect management. 

  RescEU: Amending budgets No1 and No2/2020 have significantly increased the resources available 
in  the  Union  Civil  Protection  programme  to  face  COVID-19  related  urgent  needs  (namely, 
medical stockpiling and repatriation). This represents in total a reinforcement of EUR 415 million 
in  commitment  appropriations.  Less  than  half  of  these  appropriations  have  been  covered  by 
payment  appropriations 
that  approximately 
EUR 132 million will be necessary in 2021 to complete these measures. Most of the payments will 
cover reimbursements to Member States for measures already implemented. 

revised  estimates 

in  2020  and 

indicate 

  Support to the Turkish-Cypriot Community: as a consequence of the COVID-19 crisis, the United 
Nations Development Programme – Local Infrastructure Facility (UNDP LIF) has been providing 
increased  technical  assistance  in  the  identification  of  emergency  response  needs  leading  to 
increased payments compared to the forecast. On top of the increase resulting from the targeted 
reinforcement  described  under  section  8.1.1  below  (EUR 3 million),  further  payments 
appropriations  of  EUR 4 million  are  needed  for  the  completion  of  operations  such  as  the 
Scholarship programme, the International Bank for Reconstruction and Development’s Economic 
Analysis Programme for Growth and Sustainable Development,  micro business support and the 
project 'Construction of the new Northern Nicosia Trunk Sewer – NNTS’. 

  CEF — Transport (including the contribution from the Cohesion Fund and the military mobility): 
the overall decrease of -EUR 155 million results from the following combined two elements: 

o  -EUR 100 million corresponding to payments that will be done in 2020 while initially forecast 
in 2021. These payments are linked to the voluntary claims sent by several large beneficiaries 
and for which a reinforcement was proposed by the Commission in DAB No10/2020; 

o  A downwards reassessment of the payment needs for all components of CEF— Transport for a 
total  amount  of  -EUR 55 million  (of  which  -EUR 37 million  for  the  contribution  from  the 
Cohesion  Fund  and  -EUR 13,4 million  fo  the  military  mobility).  Considering  the  current 
timeframe  for  the  publication  of  the  first  CEF—  Transport  call  for  proposals  in  2021,  the 
Commission considers that only a minor part of Grant Agreements will be signed (and hence 
pre-financing payments disbursed) in 2021. 

17  

JOIN(2020) 11 final, 8.4.2020. 

9 

 
 
 
 
 
 
 
                                                 
 

InvestEU:  the  decrease  in  payments  needs  for  the  Connecting  Europe  Facility  Debt  Instrument 
(CEF-DI)  corresponds  to  payments  that  will  be  done  in  2020  while  initially  forecasted  in  2021 
(appearing  under  InvestEU  completion  lines)  and  therefore  need  to  be  frontloaded.  By  end  of 
2020, the EIB is expected to finalise the signature of a range of projects that include operations 
linked  to  the  deployment  of  electric  vehicles  charging  points,  hydrogen  refuelling  points, 
hydrogen fuel-cell electric buses and electric trucks for freight mobility, that advanced at a faster 
pace than expected. 

2.4  

Adjusted scope of MFF headings and impact on the nomenclature structure 

In line with the EUCO agreement of July 2020 and confirmed in the political agreement of November 
2020  between  the  European  Parliament  and  the  Council,  the  programmes  (and  the  other  elements) 
included in the DB 2021 under the new budget title 14 “Resilience and Crisis Response” (and which 
was included in heading 5 “Resilience, Security and Defence”), are transferred to the new budget title 
06 “Recovery and Resilience” (included in heading 2b “Resilience and Values”). 

This  transfer  will  require  the  technical  re-numbering  of  the  titles  15  “External  Action”,  16  “Pre-
Accession  Assistance”  and  17  “Expenditure  outside  the  annual  ceilings  set  out  in  the  Multiannual 
Financial  Framework”.  This  technical  re-numbering  will  be  implemented  in  the  publication  of  the 
budget 2021, after its adoption. 

2.5  

Revised distribution of “Next Generation EU” between grants and loans 

As confirmed in the political agreement of November 2020 between the European Parliament and the 
Council, the grant part of the “Next Generation EU” (NGEU) funds (EUR 750 billion in 2018 prices) 
that  will  support  Union  programmes  has  been  reduced  both  in  amount  (from  EUR 500 billion  to 
EUR 390 billion) and in scope. 

As  a  result,  the  budget  remarks  of  the  concerned  budget  lines  have  been  adapted  accordingly  in 
AL 1/2021.  Also,  as  regards  the  EAFRD,  the  two-year  transitional  period  already  agreed  by  the 
Council and the European Parliament will include the implementation of the NGEU contribution as of 
2021. A new budget line has been created for that purpose in AL 1/2021. 

The planned amounts from  NGEU for 2021, by  programme and budget  line, are shown in  the table 
below: 

Programme / Budget line 

Horizon Europe 
01 01 01 02 - External personnel implementing "Horizon Europe" — 
Indirect research 
01 01 01 03 - Other management expenditure for "Horizon Europe" — 
Indirect research 
01 02 02 10 - Cluster Health 
01 02 02 40 - Cluster Digital, Industry and Space 
01 02 02 50 - Cluster Climate, Energy and Mobility 
01 02 03 01 - European Innovation Council 
InvestEU Fund 
02 01 01 - Support expenditure for "InvestEU" 
02 02 02 - InvestEU Guarantee - Provisioning of the Common 
Provisioning Fund 
02 02 03 - InvestEU Advisory Hub, Portal and accompanying measures 
REACT-EU European Regional Development Fund (ERDF) 
05 01 01 - Support expenditure for the "European Regional Development 

Contribution from Next 
Generation EU (in EUR millon) 

Budget 
commitments 
1 772,0 

Payment 
appropriations 
177,9 

3,7 

3,7 

441,2 
441,2 
441,2 
441,2 
1 783,0 
0,5 

1 745,0 

37,5 
27 856,5 
2,5 

3,7 

3,7 

32,2 
47,9 
7,0 
83,5 
174,0 
0,5 

151,0 

22,5 
4 983,5 
2,5 

10 

 
 
 
Programme / Budget line 

Fund" 
05 02 05 01 - ERDF — Operational expenditure — Financing under 
REACT-EU 
05 02 05 02 - ERDF — Operational technical assistance — Financing 
under REACT-EU 
European Recovery and Resilience Facility (incl. Technical Support 
Instrument) 
06 01 01 - Support expenditure for the "European Recovery and 
Resilience Facility (incl. Technical Support Instrument)" 
06 02 01 - European Recovery and Resilience Facility (RRF) — Grants 
Union Civil Protection Mechanism (RescEU) 
06 01 04 - Support expenditure for the "Union Civil Protection 
Mechanism (RescEU)" 
06 05 01 - Union Civil Protection Mechanism (RescEU) 
REACT-EU European Social Fund (ESF) 
07 01 01 01 - Support expenditure for the "European Social Fund+ — 
shared management" 
07 02 05 01 - ESF — Operational expenditure — Financing under 
REACT-EU 
07 02 05 02 - ESF — Operational technical assistance — Financing 
under REACT-EU 
European Agricultural Fund for Rural Development (EAFRD) 
08 03 01 03 - Rural development types of interventions under the CAP 
Strategic Plans financed from the European Union Recovery Instrument 
(EURI) 
08 03 03 - EAFRD — Operational technical assistance financed from the 
European Union Recovery Instrument (EURI) 
Just Transition Fund 
09 01 02 - Support expenditure for the "Just Transition Fund" 
09 03 01 - Just Transition Fund (JTF) — Operational expenditure 
09 03 02 - Just Transition Fund (JTF) — Operational technical assistance 
TOTAL 

Contribution from Next 
Generation EU (in EUR millon) 

Budget 
commitments 

Payment 
appropriations 

27 756,8 

4 977,1 

97,2 

3,9 

236 607,0 

67 607,0 

7,0 

236 600,0 
682,5 

3,9 

678,6 
11 938,5 

1,1 

7,0 

67 600,0 
197,0 

3,9 

193,1 
2 135,8 

1,1 

11 895,8 

2 133,0 

41,6 

2 387,7 

2 381,7 

6,0 

2 122,0 
2,4 
2 112,2 
7,4 
285 149,2 

1,7 

596,9 

595,4 

1,5 

55,0 
2,4 
52,4 
0,2 
75 927,1 

3. 

PARTICIPATION OF THE UNION IN THE CAPITAL INCREASE OF THE EUROPEAN INVESTMENT 
FUND (EIF) 

On 14 July 2020, the Board of Directors of the European Investment Fund (EIF) approved in principle 
the  proposal  to  the  shareholders  to  increase  the  subscribed  capital  of  the  EIF.  The  European 
Investment  Bank  (EIB)  Group  has  determined  the  size  of  the  EIF  capital  increase  needed  so  that  it 
provides the EIF with a cash injection of EUR 1 250 million. The price of the new shares should be 
based  on  the  net  asset  value  formula  agreed  among  the  shareholders  of  the  EIF  and  consists  of  the 
paid-in part and the share premium.  

The  Union,  represented  by  the  Commission,  should  be  in  a  position  to  participate  in  this  capital 
increase  in  order  to  allow  the  EIF  to  continue  supporting  the  Union  economy  and  its  recovery, 
including  through  its  contribution  to  the  implementation  of  the  InvestEU  programme.  Furthermore, 
the  Union  should  be  able  to  maintain  its  overall  share  in  the  EIF  capital.  It  is  most  likely  that  the 
Union will be subscribing to the newly issued shares of the EIF and make the relevant payment in the 
first half of 2021. 

11 

 
 
 
In  order  for  the  Union  to  allow  a  pro-rata  participation  in  the  EIF  capital  increase  of  the 
aforementioned size, an estimated amount of EUR 375 million18, both in commitment and in payment 
appropriations, will be required to cover the cost of the subscription. This amount, deducted from the 
2021 envelope of InvestEU, has been allocated to the specific EIF budget line under the chapter 20 of 
the same title (02 20 03 01 “European Investment Fund — Provision of paid-up shares of subscribed 
capital”). 

4. 

EUROPEAN AGRICULTURAL GUARANTEE FUND (EAGF) 

AL 1/2021 updates estimates for agricultural expenditure based on the most up-to-date economic data 
and  legislative  framework.  By  beginning  of  November  2020,  the  Commission  had  at  its  disposal  a 
first indication of the level of production for 2020 and the outlook for the agricultural markets as well 
as actual figures for most of the 2020 budget execution as regards EAGF shared management, which 
are the basis for the updated estimates of the budgetary needs for 2021.  

Apart from taking into account market factors, AL 1/2021 also incorporates the impact of legislative 
decisions in the agricultural sector since the DB 2021 was adopted in July 2020, as well as for some 
that are still under preparation, soon to be adopted. In particular, it updates the amounts for transfers 
between the EAGF and the EAFRD for which several Member States submitted their notifications by 
18 May 2020. 

The 2021 net balance available for the EAGF, according to the political agreement of November 2020 
between  the  European  Parliament  and  the  Council  and  taking  into  account  a  net  transfer  of 
EUR 557,0 million  to  Rural  Development,  amounts  to  EUR 40 368,0  million.  This  new  amount 
includes transfers from the EAGF to the EAFRD and vice-versa, as notified by several Member States 
to the Commission in 2019, including the modifications notified during 202019. 

Overall, 2021 EAGF needs (after taking into account EAGF provisions related to 'financial discipline') 
are now estimated at EUR 40 987,0 million20, which is an increase by EUR 222,2 million compared to 
the DB 2021. This increase is mostly due to additional needs for the financial corrections in favour of 
Member States (+EUR 233,1 million), while the modifications for market-related expenditure outside 
the CAP Strategic Plans (+EUR 15,0 million) and direct payments outside the CAP Strategic Plans (-
EUR 29,7 million) are rather small.  

The  amount  of  assigned  revenue  estimated  to  be  available  in  2021  slightly  increases  from 
EUR 585,7 million  in  DB 2021  to  EUR 619,0 million  (+EUR 33,3 million).  In  contrast  to  previous 
years, AL 1/2021 does not incorporate an expected carry-over of assigned revenue from 2020 to 2021 
as  2020  execution  is  running  at  a  high  level.21  The  unused  appropriations  (EUR 478 million)  of  the 
2020 agricultural crisis reserve, which will not be called on, will be carried over for reimbursement to 
farmers subject to the financial discipline in 2021. 

18  

19  

20  

21  

In accordance with Article 7 of the EIF Statutes, this amount will correspond to 20 % of the nominal value to be 
paid  in  at  the  subscription  (in  addition  to  paying  for  the  share  premium  on  purchase).  The  remaining  80 %, 
represents a capped contingent liability for the Union linked to the possibility that further payment of subscribed 
but not paid in capital could be required.  
The exact figure of the EAGF net balance is EUR 40 367,954 million. The additional transfers were notified by 
Member  States  concerned  in  accordance  with  Articles  7(2),  11(6),  14(1)  and  14(2)  of  Regulation  (EU)  No 
1307/2013 with an amount of EUR 1 157,704 million from the EAGF to the EAFRD and EUR 600,658 million 
from  the  EAFRD  to  the  EAGF.  The  resulting  net  transfer  from  the  EAGF  to  the  EAFRD,  i.e. 
EUR 557,046 million, is deducted from the 2021 EAGF sub-ceiling of EUR 40 925 million under the new MFF 
2021-2027  and  added  to  the  respective  national  envelopes  for  the  EAFRD  in  2021.  Overall,  such  transfers 
between the two CAP pillars are budgetary neutral as regards the ceiling for Heading 3. 
The  needs  amount  corresponds  to  EUR 40 368,0 million  fresh  appropriations  plus  EUR 619,0 million  assigned 
revenue. 
This  estimate  is  based  on  the  declarations  of  actual  expenditure  received  from  Member  States  for  the  period 
1.9.2020  to  15.10.2020.  Small  corrections  in  relation  to  these  declarations  and  expenditure  under  direct 
management are still to be made up to the end of the year. 

12 

 
 
 
 
 
                                                 
As  a  result  of  these  updates,  the  Commission  proposes  to  increase  the  expenditure  estimates  for 
agriculture  by  EUR 188,9 million  compared  to  the  DB 2021.  Commitment  appropriations  of 
EUR 40 368,0 million,  including  the  Reserve  for  crises  in  the  agricultural  sector,  are  required  to 
cover  EAGF  needs  for  2021.  This  overall  amount  exactly  corresponds  to  the  EAGF  net  balance 
resulting  from  the  MFF  2021-2027  as  agreed  by  the  European  Council  and  takes  account  of  the 
modified transfers between the two pillars as notified by the Member States. As the needs exceed the 
2021 EAGF net balance, they must be adjusted via the financial discipline mechanism, which aims at 
reducing  the  amounts  available  for  direct  payments  in  order  to  respect  the  EAGF  net  balance  and 
establish the crisis reserve.22  

5. 

DELEGATION PACKAGE FOR THE SIX EXECUTIVE AGENCIES 

Submission to the Committee on Executive Agencies 

5.1  
In the coming days, and in accordance with the procedure laid down in Regulation No 58/200323, the 
Commission  will call on the Committee on Executive Agencies (CEA) to deliver an opinion  on the 
draft Commission  Implementing Decision  establishing the new generation of  executive agencies. At 
the  same  time,  the  Commission  will  transmit  the  full  set  of  delegation  documents  to  the  European 
Parliament  and  the  Council,  including  an  information  note  setting  out  the  main  elements  of  the 
foreseen delegation package. The package to be submitted to the CEA will be updated to reflect the 
level of the envelopes of the spending programmes proposed to be delegated according to the political 
agreement of November 2020 between the European Parliament and the Council on the next MFF. 

It was not possible to update the relevant data on time for this amending letter; therefore all the tables 
in this section – including staffing for the agencies and proposed offsetting in the Commission  – are 
still  based  on  the  envelopes  of  the  spending  programmes  set  in  the  EUCO  agreement  of  July  2020. 
Given the significant increase in the budget of some programmes included in the political agreement 
of  November  2020,  which  are  partly  or  fully  delegated  to  executive  agencies  (Erasmus,  Horizon 
Europe, EU4Health, Creative Europe, Rights and Value), the delegated budget and proposed staffing 
of  the  agencies  concerned  will  increase  correspondingly.  It  will  however  not  affect  the  proposed 
distribution of programmes amongst executive agencies.  

In this respect, the Commission intends to keep the same number of executive agencies. However, it 
proposes to modify the portfolios of the agencies to create more synergies and savings and avoiding 
the  split  of  programmes  or  subprogrammes  among  agencies.  As  a  consequence,  it  is  proposed  to 
transfer  the  activities  of  the  Consumers,  Health  and  Food  Executive  Agency  (CHAFEA)  located  in 
Luxembourg  to  the  Brussels  based  agencies,  while  creating  a  new  agency  in  Brussels.  It  is  also 
proposed to adjust the names of the agencies to their future portfolios: 

  The European Research Council Executive Agency (ERCEA); 

  The European Research Executive Agency (former Research Executive Agency (REA)); 

  The European Health and Digital Executive Agency (new agency); 

  The European Climate, Infrastructure and Environment Executive Agency (former Innovation and 

Networks Executive Agency (INEA)); 

  The  European  Education  and  Culture  Executive  Agency  (former  Education,  Audio-visual  and 

Culture Executive Agency (EACEA)); 

  The  European  Innovation  Council  and  SMEs  Executive  Agency  (former  Executive  Agency  for 

Small and Medium-sized Enterprises (EASME)). 

22  

23  

The adjustment rate for direct payments related to the financial discipline  mechanism in respect of the calendar 
year 2020 is set in Commission Implementing Regulation (EU) 2020/862 of 19 June 2020 with 2,140411 % on 
the basis of the DB 2021. The Commission will update this rate accordingly taking into account the modifications 
proposed in this AL, leading to a somewhat higher rate of 2,906192 %. 
Council Regulation (EC) No 58/2003 of 19 December 2002 laying down the statute for executive agencies to be 
entrusted with certain tasks in the management of Community programmes (OJ L11, 16.1.2003, p. 1-8). 

13 

 
 
 
                                                 
Subject  to  the  positive  opinion  of  the  CEA,  provided  that  neither  the  European  Parliament  nor  the 
Council has raised any objections, and the basic acts of the 2021-2027 programmes are adopted in due 
time  by  the  legislative  authority,  the  Commission  intends  to  adopt  the  draft  proposal  as  early  as 
possible for the new generation of executive agencies to implement the new Union programmes. 

5.2  

Proposed level of operational appropriations 2021-2027 to be delegated 

The overview table below compares, agency by agency, the total level of operational appropriations 
managed  by  the  agencies  in  the  current  and  future  MFF  with  the  number  of  human  resources  (Full 
Time Equivalents, FTEs) and the corresponding subsidy to cover the running costs of the agencies. 

Executive Agencies 

European  Research  Council  Executive  Agency 
(former ERCEA) 
European  Research  Executive  Agency  (former 
REA) 
European  Health  and  Digital  Executive  Agency 
(new) 
European Climate, Infrastructure and Environment 
Executive Agency (former INEA) 
European  Education  and  Culture  Executive 
Agency (former EACEA) 
European Innovation Council and SMEs Executive 
Agency (former EASME) 
Consumers,  Health  and  Food  Executive  Agency 
(CHAFEA) 
Total 

Budget 
managed by 
Executive 
Agency 
2014-2020 
(billion 
EUR) 

FTEs in 
Executive 
Agencies 2020 

Budget to be 
managed 
2021-2027 
(billion EUR , 
2018 prices) 

Envisaged 
FTEs in 
Executive 
Agencies 2027 

13 

13 

 -  

34 

5 

10 

1 

75 

529 

785 

 -  

313 

438 

506 

79 

2 650 

12,3 

18,2 

13,2 

39,1 

6,5 

9,2 

 -  

98,4 

457 

877 

404 

474 

501 

328 

 -  

3 041 

Impact on human and financial resources in the executive agencies in 2021 

5.3  
The impact  of the delegated voted appropriations24 on the executive agencies’ subsidy lines and the 
FTEs in 2021 is summarised in the table below. 

Executive Agency 

European Research 
Council Executive 
Agency (former ERCEA) 
European Research 
Executive Agency (former 
REA)  
European Health and 
Digital Executive Agency 
(new) 
European Climate, 
Infrastructure and 
Environment Executive 
Agency (former INEA) 
European Education and 
Culture Executive Agency 
(former EACEA) 
European Innovation 
Council and SMEs 
Executive Agency (former 

2020 Budget 

 DB 2021 

AL 1/2021 

DB 2021 (incl. AL 1) 

FTE 

EAs 
subsidy 

FTE 

EAs 
subsidy 

FTE 

EAs 
subsidy 

FTE  

EAs 
subsidy  

Δ FTE 
vs 2020  

Δ EA 
subsidy 
vs 2020  

529 

51,319 

529 

        -      

-10 

53,915 

519 

53,915 

-1,89% 

5,06% 

785 

75,749 

785 

        -      

49 

91,592 

834 

91,592 

6,24% 

20,92% 

        - 

        - 

        - 

        -      

307 

39,078 

307 

39,078 

-  

-  

313 

30,383 

313 

        -      

146 

47,969 

459 

47,969 

46,65% 

57,88% 

438 

47,750 

438 

5,11 

9 

45,693 

447 

50,803 

2,05% 

6,39% 

506 

51,177 

506 

        -      

-119 

43,744 

387 

43,744 

-23,52% 

-14,52% 

24  

This table does not include appropriations/staff related to JRC pillar III, Innovation fund and renewable energy 
fund. It includes staff numbers and appropriations related to the  implementation of the research programme for 
Coal and Steel. 

14 

 
 
 
                                                 
Executive Agency 

EASME) 

Consumers, Health and 
Food Executive Agency 
(CHAFEA) 
Total 

2020 Budget 

 DB 2021 

AL 1/2021 

DB 2021 (incl. AL 1) 

FTE 

EAs 
subsidy 

FTE 

EAs 
subsidy 

FTE 

EAs 
subsidy 

FTE  

EAs 
subsidy  

Δ FTE 
vs 2020  

Δ EA 
subsidy 
vs 2020  

79 

11,301 

79 

        -      

-79 

0 

0 

0 

-100% 

-100% 

2 650 

267,679 

2 650 

5,11 

302  321,991  2 952  327,101 

11,40% 

22,20% 

The estimated staff numbers needed in the executive agencies in 2021 increase by 302 FTE (11,4 %) 
as compared to 2020 budget. The corresponding Union’s contribution increase by 22,2 % as compared 
to 2020. 

5.4  

Impact on human resources in the Commission 

Regulation  No 58/2003  requires  that  any  delegation  of  tasks  to  an  executive  agency  should  be  cost 
efficient and consistent with the principle of sound financial management. As shown in the overview 
table  under  section  5.2  above,  this  will  entail  a  higher  workload  for  the  executive  agencies  for  the 
period 2021-2027 and more staff will be needed to manage the programmes effectively. 

Part  of  the  increased  workload  for  the  executive  agencies  will  result  from  newly  delegated 
programmes  and  tasks  currently  implemented  by  Commission  services.  The  transfer  of  those 
implementing tasks will reduce the corresponding human resources in the Commission, since they will 
no longer be carried out in the Commission. Another part of the increased workload in the executive 
agencies will result from increased budgets for already delegated programmes as well as from the new 
programmes. In these cases there is no impact on workload in the Commission, as the task has either 
been  transferred  already  or  has  never  been  implemented  in-house.  In  this  case,  the  Commission 
proposes freeing up a number of staff to ensure overall budgetary neutrality.  

In the past, those ‘freed’ human resources were redeployed to other tasks in accordance with Article 
13(6)(c)  of  Regulation  No 58/2003.  Given  the  Commission’s  commitment  to  ensuring  budget 
neutrality  with  regard  to  administrative  expenditure,  as  a  result  of  delegating  additional  tasks  of 
programme  management,  the  Commission  will  reduce  its  human  resources  to  offset  the  additional 
FTEs  in  the  executive  agencies.  Likewise,  expenditure  related  to  posts  ‘frozen’  to  take  account  of 
secondments to the executive agencies will also be reduced, accordingly. 

The  table  below  shows  the  way  in  which  the  Commission  proposes  to  offset  the  additional  human 
resources in the executive agencies, by 2027: 

Offsetting of the increased human resources in the executive agencies 

Increase in resources to cover running costs of six executive agencies stemming from further delegation 

Reduced administrative resources under heading 7 resulting from delegating tasks currently managed by the Commission 

Reduced administrative and support resources under other headings resulting from delegating tasks currently managed by the 
Commission 

Human resources 
(FTE) 

+390 

-59 

-188 

5.5  

Adjustments included in AL 1/2021 

The adjustments included AL 1/2021 reflect the resources implications of the foreseen delegation of 
the  2021-2027  programmes,  both  on  the  side  of  the  executive  agencies  and  on  the  side  of  the 
Commission for 2021. For this latter, the impact  consists of a net reduction of the appropriations of 
salaries under the heading 7 “European Public Administration” for an amount of EUR 2,5 million and 
a budgetary neutral reallocation of the appropriations within the respective envelope of the concerned 
delegated programmes. 

15 

 
 
 
 
 
In terms of nomenclature, as shown in the table below, new budget lines are proposed to be created 
within each delegated programme for the subsidy of the six new executive agencies, in addition to the 
budget lines already included in the DB 2021 for the current “legacy” ones. Maintaining this parallel 
structure  will  ensure  an  orderly  transition  from  the  current  to  the  future  executive  agencies  set-up, 
whatever its precise timing, which is closely dependant on the formal adoption of the MFF and of the 
basic acts of the 2021-2027 programmes.  

New executive 
agency 

European Research 
Council Executive 
Agency 

European Research 
Executive Agency 

European Health 
and Digital 
Executive Agency 

European Climate, 
Infrastructure and 
Environment 
Executive Agency 

European 
Education and 
Culture Executive 
Agency 

European 
Innovation Council 
and SMEs 
Executive Agency 

New 
subsidy 
line 

New portfolio 

Legal 
predecessor 

Legacy 
delegation 

Legacy 
subsidy line 

Previous portfolio 

01 01 01 71 

Horizon Europe 

ERCEA 

ERCEA 

01 01 01 61 

Horizon 2020 

01 01 01 72 

Horizon Europe 

20 03 14 72 

08 01 01 72 

20 03 14 72 

Central Support Service 
European Agricultural 
Guarantee Fund 
Research Programme for 
Coal and Steel 

01 01 01 73 

Horizon Europe 

02 01 23 73 

02 01 30 73 

Connecting Europe 
Facility - Digital 
Digital Europe 
Programme 

03 01 01 73  Single Market Programme 

06 01 05 73 

EU4HEALTH 

01 01 01 74 

Horizon Europe 

02 01 21 74 

02 01 22 74 

02 01 40 74 

05 01 02 74 

08 01 03 74 

09 01 01 74 

09 01 03 74 

13 01 03 74 
17 01 02 74 
07 01 02 75 

Connecting Europe 
Facility - Transport 
Connecting Europe 
Facility - Energy 
Renewable Energy 
Financing Mechanism 
Cohesion Fund 
(contribution to the 
Connecting Europe 
Facility) 
European Maritime and 
Fisheries Fund 
EU's funding instrument 
for the environment and 
climate action (LIFE) 
Public sector loan facility 
under the Just Transition 
Mechanism 
Military Mobility 

Innovation Fund 

Erasmus+ 

07 01 03 75  European Solidarity Corps 

07 01 04 75 
07 01 05 75 

Creative Europe 

Rights and Values 

15 01 01 75 

Neighbourhood, 
Development and 
International Cooperation 
Instrument 

16 01 01 75 

Instrument for Pre-
Accession Assistance III 

01 01 01 76 

Horizon Europe 

03 01 01 76  Single Market Programme 

REA 
EASME 
REA 

01 01 01 62 
01 01 01 63 
20 03 14 62 

CHAFEA 

08 01 01 66 

Horizon 2020 

Central Support Service 
European Agricultural 
Guarantee Fund 

REA 

- 

- 

REA 

REA 
EASME 

01 01 01 62 
01 01 01 63 

INEA 

02 01 21 64 

Horizon 2020 

Connecting Europe 
Facility 

New 

- 

- 

- 

CHAFEA 

EASME 
INEA 

03 01 01 66 

06 01 05 66 
01 01 01 63 
01 01 01 64 

Food and feed safety, 
animal health, animal 
welfare and plant health 
Health 

Horizon 2020 

INEA 

02 01 21 64 

Connecting Europe 
Facility 

- 

- 

- 

INEA 

05 01 02 64 

INEA 

08 01 03 63 

09 01 01 63 

- 

- 
17 01 02 64 
07 01 02 65 

07 01 03 65 

07 01 04 65 
07 01 05 65 

15 01 01 65 

16 01 01 65 

01 01 01 62 
01 01 01 63 

03 01 01 63 

EASME 

- 

- 
INEA 

EACEA 

EACEA 

REA 

EASME 

EASME 

16 

Cohesion Fund 
(contribution to the 
Connecting Europe 
Facility) 
European Maritime and 
Fisheries Fund 
EU's funding instrument 
for the environment and 
climate action (LIFE) 

- 

- 

Innovation Fund 

Erasmus+ 
European Solidarity 
Corps 
European Union Aid 
Volunteers 
Creative Europe 

Europe for Citizens 

Partnership Instrument 
Development 
Cooperation Instrument 
European 
Neighbourhood 
Instrument 
Instrument for Pre-
Accession Assistance II 

Horizon 2020 

EU programme for the 
Competitiveness of 
Enterprises and SMEs 
(COSME) 

 
 
 
New executive 
agency 

New 
subsidy 
line 

New portfolio 

Legal 
predecessor 

Legacy 
delegation 

Legacy 
subsidy line 

Previous portfolio 

05 01 01 76 

European Regional 
Development Fund 
(Interregional Innovation 
Investments) 

CHAFEA 

03 01 01 66 

Consumers 

- 

- 

- 

The  appropriations  corresponding  to  the  subsidy  foreseen  for  each  new  agency  in  2021  in  the 
delegation  package  will  temporarily  be  allocated  to  the  legacy  subsidy  lines,  limited  to  the  level  of 
appropriations included in the budget 2020, if lower (with the difference allocated to the new subsidy 
line, when applicable). 

The  same  “parallelism”  approach  has  been  applied  to  the  establishment  plans:  six  new  ones  are 
proposed to be created for the six new executive agencies in addition to those included in the DB 2021 
for  the  current  “legacy”  ones.  No  reduction  is  applied  for  2021  in  the  establishment  plans  of  the 
Commission. 

The “legacy” subsidy lines and establishment plans of the current executive agencies will be merged 
with  the  new  ones  either  in  an  Amending  Budget  in  2021  or  in  the  framework  of  the  budgetary 
procedure 2022. 

6. 

DECENTRALISED AGENCIES 

6.1  

European Medicines Agency (EMA) 

The  medicine  industry  is  developing  a  high  number  of  products  in  reaction  to  the  COVID-19 
pandemic. The European Medicines Agency (EMA) will have to evaluate and authorise the medicines 
and  vaccines  currently  under  development,  which  are  proposed  to  be  brought  to  the  market.  This 
creates  a  temporary  peak  in  EMA’s  scientific  work  as  well  as  its  coordinating  role.  A  two-year 
temporary  staff  reinforcement  of  40  temporary  agents  is  thus  warranted  as  of  2021.  The  financial 
impact will be covered through other revenue (fees and charges) and will not have an impact on the 
Union contribution. 

In addition, following the adoption of the Autumn Health Package on 11 November 2020, the role of 
EMA is proposed to be further, and structurally, reinforced. This initiative aims to ensure that critical 
shortages  of  medicinal  products  and  medical  devices  in  a  health  emergency  are  avoided  across  the 
Union.  The  additional  staff  will  also  allow  the  EMA  to  establish  a  permanent  task  force  to  provide 
advice  on  medicines  during  times  of  crises,  and  will  enable  the  Agency  to  reuse  health  data  for 
regulatory purposes in the context of the European Health Data Space. The strengthening of EMA’s 
role will require  an increase of the Union contribution by EUR 28 million and 29  additional human 
resource allocations for 2021 (21 temporary agents and 8 contract agents). 

6.2  

European Centre for Disease Prevention and Control (ECDC) 

The  European  Centre  for  Disease  Prevention  and  Control  (ECDC)  continuously  assesses  and 
communicates  current  and  emerging  threats  to  human  health  from  communicable  diseases  and 
provides recommendations for response at Union and national level. The current pandemic situation 
has proven that a strong ECDC is a key element in the European Health Union. The Autumn Health 
Package mentioned above also included a legislative proposal targeted at strengthening the agency’s 
role, allowing the agency to increase its support to Member States with preparedness preparation and 
quick  interventions  in  a  health  crisis.  The  financial  impact  of  the  proposal  requires  an  increase  of 
EUR 16 million  of the Union  contribution  and a strengthening of the human resources for 2021  (18 
temporary agents and 13 contract agents).  

17 

 
 
 
European Environmental Agency (EEA) 

6.3  
Following the adoption by Council and Parliament of the Taxonomy Regulation25 on 18 June 2020, 
one additional Temporary Agent has to be added compared to the establishment plan communicated in 
the DB 2021. 
Furthermore, additional tasks have been allocated to the agency under the 8th Environmental Action 
Programme, which require 9 Temporary Agents and 6 Contract Agents and a reinforcement of the EU 
contribution of EUR 3,2 million. This increase is offset by a corresponding reduction of the budget of 
the LIFE programme. 

6.4  

European Chemicals Agency (ECHA) 

The European Chemicals Agency (ECHA) has experienced a steep drop in fee income in 2020 for its 
activities  in  the  field  of  biocides  legislation.  The  resulting  shortfall  needs  to  be  offset  by  a 
reinforcement of the Union contribution of EUR 3,2 million.  
The  agency  is  also  allocated  additional  tasks  in  the  field  of  hazardous  chemicals  under  the  8th 
Environmental  Action  Programme,  which  require  1  Temporary  Agent  and  1  Contract  Agent  and  a 
reinforcement  of  Union  contribution  of  EUR 0,3 million.  This  increase  is  offset  by  a  corresponding 
reduction of the budget of the LIFE programme. 

6.5  

European Banking Authority (EBA) 

The European Banking Authority (EBA) adjusted the split of the repayment of EBA’s 2019 surplus, 
which resulted in  a higher share for the Union.  The increased assigned  revenues lower the need  for 
fresh appropriations in 2021 (-EUR 276 639). 

6.6  

European Asylum Support Office (EASO) 

Due to a structural lack of secondment of national experts by Member States, the European Asylum 
Support  office  (EASO)  had  to  deliver  part  of  its  missions  through  the  use  of  interim  workers. 
However,  as  those  cannot  permanently  be  prolonged,  EASO  has  informed  the  Commission  of  its 
intention to temporarily replace 58 interim workers with Contract Agents with a contract of maximum 
1 year. The proposed replacement of interim workers by Contract Agents will not have an impact on 
the appropriations foreseen for the agency in the DB 2021. EASO will, together with the Commission, 
use  the  year  to  find  a  structural  solution  for  the  lack  of  national  experts  deployed  by  the  Member 
States to EASO. 

7. 

ADJUSTMENTS TO THE HEADING 7 “EUROPEAN PUBLIC ADMINISTRATION” 

Salary indexation as from 1 July 2020 

7.1  
In accordance with articles 64 and 65 of the Staff Regulations26, the remuneration of the officials and 
other servants of the European Union is updated each  year, in the light of a report presented by the 
Commission, based on statistical data prepared by Eurostat in agreement with the national statistical 
offices of the Member States, reflecting the situation in the Member States at 1 July. 

The  calculation  of  the  update  is  based  on  the  principle  of  parallelism  between  the  evolution  of  real 
(net of inflation) remuneration of Union officials and national civil servants of the Member States. It 
reflects the combined effect of two main variables: 

25  

26  

Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment 
of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088. 
Regulation  No  31  (EEC),  11  (EAEC),  laying  down  the  Staff  Regulations  of  Officials  and  the  Conditions  of 
Employment  of  Other  Servants  of  the  European  Economic  Community  and  the  European  Atomic  Energy 
Community (OJ P 045 14.6.1962, p. 1385). 

18 

 
 
 
                                                 
  The specific indicator (SI), reflecting the changes in the purchasing power of salaries of national 
civil  servants  in  central  governments  of  a  sample  of  11  Member  States  representing  more  than 
75% of the Union GDP; 

  The  joint  index  (JI),  reflecting  the  annual  inflation  in  Brussels  and  Luxembourg  calculated  by 
weighting national consumer price inflation as measured by the Belgium HICP27 and Luxembourg 
CPI28 according to the distribution of Union staff serving in those Member States. 

Those two elements are multiplied in order to obtain the update rate. 

As  stipulated  in  Article  11  of  Annex  XI  of  the  Staff  Regulation  (‘exception  clause’),  in  case  of  a 
decrease in the real Union GDP for the current year as forecast by the Commission and the specific 
indicator  is  positive,  only  part  of  the  specific  indicator  shall  be  used  to  calculate  the  value  of  the 
update. In the case of a drop of the GDP by more than 3 %, the specific indicator will be set to 0 % for 
the  2020  exercise.  The  value  of  the  specific  indicator  that  did  not  serve  the  update  of  the 
remunerations and the pensions in 2020, shall form the basis of the calculation of a future update once 
the cumulative increase of the Union GDP becomes positive. 

According to the latest forecast issued by the Commission, as a consequence of the COVID-19 crisis, 
the real EU GDP in the calendar year 2020 is expected to decrease by -8,3 %. Therefore, the exception 
clause will be triggered and the specific indicator will be 0 % and the salary update on 1 July 2020 
will solely correspond to the evolution of the JI for the period July 2019-July 2020. 

This JI has been confirmed at 0,7 % by Eurostat in the report for the annual update of remunerations 
and pensions issued on 31 October 2020, in line with the provisions set out in Annex XI of the Staff 
Regulations, whereas the revised forecasted salary update rate as of 1 July 2020 used for the DB 2021 
(full year impact) was 0,9 %. 

The  appropriations  under  the  MFF  heading  7  “Administration”  should  therefore  be  reduced  by 
EUR 22,0 million  for  2021,  of  which  EUR 5,9 million  for  the Commission,  EUR 4,4 million  for  the 
pensions of all institutions and EUR 4,8 million for all other Institutions. The remaining reduction of 
EUR 7,0 million  relate  to  the  European  Schools  for  which  the  budget  request  under  DB 2021 
corresponds to a salary update rate of 3,1 %, i.e. the initial forecast rate used by the Commission in 
spring 202029. 

7.2  

Reinforcement of the European Parliament 

A total reinforcement of EUR 4,6 million has been requested by the European Parliament for: 

  The  remaining  building  construction  costs  foreseen  for  2021  for  an  amount  of  EUR 2,1 million 
(works, consultants’ fees, initial fitting-out work and supplies to make buildings operational, and 
all related costs), as well as fitting-out costs and related expenditure, and in particular architects’ 
or engineers’ fees, as estimated by the European Parliament; 

  The  increase  of  the  contingency  reserve  for  an  amount  of  EUR 2,6 million  to  cover  additional 
expenditure resulting from budgetary decisions taken in the course of the financial year, including 
those linked to the on-going COVID-19 crisis. 

27  
28  
29  

Harmonised index of consumer prices. 
Consumer Price Index. 
This  rate  was  based  on  the  Autumn  forecast  of  2019  and  used  in  the  initial  internal  preparatory  works  of  the 
Statement  of  Estimates  of  the  Commission.  It  was  updated  in  Spring  2020  for  the  final  DB 2021  for  all 
institutions, except for the European Schools. 

19 

 
 
 
 
 
                                                 
7.3 

Reinforcement of the European External Action Service (EEAS) 

7.3.1   Additional ressources for the European Peace Facility (EPF) 

The  proposal  on  the  EPF,  an  off-budget  fund  of  EUR 5,7 billion  over  the  next  MFF,  attributes  the 
responsibility for a number of new functions to the EEAS. It will notably have to prepare, pilot and 
follow-up on certain elements of the assistance measures to be financed under the EPF, covering their 
political,  operational  and  financial  aspects  in  concept  notes,  proposals  for  assistance  measures, 
arrangements with beneficiaries and other subsequent follow-up. 

The  actions  could  cover  financial  support  to  a  third  party,  the  provision  of  military  equipment  and 
infrastructure or integrated packages including the provision of military equipment and infrastructure 
with  military  training  through  an  EU Training Mission,  and  follow  up  mitigation  and  control 
measures. 

EEAS proposals  for  actions should follow a risk and safeguards methodology comprising a  conflict 
sensitivity  and  context  analysis,  risk  and  impact  assessments,  possible  mitigating  measures  and 
arrangements for monitoring and evaluation as necessary to ensure compliance with EU principles and 
legislation as well as international law, in particular human rights law and international humanitarian 
law. 

Where an assistance measure involves the provision  of equipment  and/or infrastructure, the  concept 
note  will  need  to  be  translated  in  the  course  of  the  decision-making  process  into  detailed  lists  and 
technical specifications of military equipment and/or infrastructure with estimates of costs. 

The EEAS will also be called upon to liaise with the EPF Administrators on financial issues. It should 
also engage on any necessary political and technical agreement with the beneficiary (partner country, 
international or regional organisation), coordination with the exporting State (coherence in licensing 
requirements), and after delivery, follow up inventory and on-the-spot visits and physical inspection 
of military equipment and infrastructure in a military environment. 

The EEAS estimates its needs at 16 FTEs (1 AD 13 official (head of division), 1 AD 11, 2 AD 10 and 
1 AD 7 + 5 Contrat Agents + 6 seconded national experts) in order to execute these new tasks, with 
which it has been entrusted by the legislator, for an initial cost in the 2021 budget of EUR 1 362 500. 

7.3.1   Additional resources for the consular services 

The COVID-19 pandemic has triggered a global consular emergency due to the very severe transport 
restrictions, which created a need to urgently repatriate between March and June 2020 more than half 
a million EU citizens stranded in third countries. Despite EU competences being limited to support to 
coordination  of  consular  assistance,  Member  States  (MS),  citizens  and  partners  have  turned  to  EU 
Institutions, requesting their active involvement in order to tackle this emergency.  

With the clear success  of this massive EU repatriation  operation, in  a context  when many MS have 
been reducing their consular footprint, the EU’s role has been openly acknowledged and welcomed by 
MS. Smaller MS have almost totally relied on EU coordination, while bigger MS are realising that an 
EU  role  is  increasingly  necessary  also  for  them.  This  has  de  facto  led  to  the  transfer  of  additional 
responsibilities to EU Delegations on consular matters. 

To face the clear expectations from MS for the EEAS to play an enhanced role in the coordination of 
consular assistance, and strengthen the role and image of the EU in third countries, the EEAS seeks to 
reinforce its Consular Affairs Division.  

This  would  allow  the  EEAS  to  swiftly  engage  in  a  lessons  learned  process,  providing  a  thorough 
analysis  of  the  consular  crisis,  with  specific  detail  on  each  of  its  phases,  the  mechanisms  used  to 
facilitate repatriations, an overview of best practices observed on the ground and an outline of main 
challenges and opportunities.  

Additionally,  this  would  prepare  the  ground  for  reviews  of  the  legal  framework  and  the  EU’s 
institutional setting of consular crisis management capabilities.  

The requested reinforcement of 1 AD 11 and 1 AD 7 official and 1 contract agent requires an initial 
increase to the EEAS’ budget of EUR 303 800. 

20 

 
 
 
 
7.4  

Transfer of certain staff in Union Delegations from the Commission to the EEAS 

According  to  the  Service  Level  Agreement  (SLA)  concluded  between  the  Commission  and  the 
European  External  Action  Service  (EEAS)  in  December  2010,  the  Commission  has  continued  to 
finance  part  of  the  staff  of  the  administrative  sections  of  the  Union  Delegations  managed  by  the 
EEAS, as a contribution to the common administrative tasks. The staff concerned consists mainly of 
local agents (LA) but also of a limited number of contract agents (CA), mainly in charge of IT support 
(so-called Regional IT Officers or ‘RITO’).  

As a result, the Commission staff working in the administrative sections of the Union Delegations are 
formally  assigned  to  each  of  the  contributing  Directorates-General  (DEVCO,  NEAR  and  FPI).  This 
situation  has  led  to  inefficiencies  including  duplication  of  workload  at  various  levels  for  those 
Commission  services  (multiplication  of  administrative  acts)  without  providing  any  added  value,  as 
well as parallel administrative and financial circuits.  

The  Commission,  in  agreement  with  the  EEAS,  proposes  to  transfer  the  Commission  staff  of  the 
administrative sections of the Union Delegations to the EEAS, thus simplifying and streamlining their 
administrative and financial circuits and allowing a more efficient management of the staff concerned. 

The majority of the CAs to be transferred (18 out of 19) are RITOs who perform very specialised IT 
activities in Union delegations under the responsibility of the EEAS. They are located in 12 regional 
centres. To group them all under a single responsibility would simplify the management of this group. 
There are multiple benefits, simplifications and gains in efficiency expected, both for the RITOs and 
for the administration, in terms of organisation of the regional centres, contract management, mobility 
exercise, appraisal and promotion as well as management of mission costs. 

With regard to local agents, the transfer to the EEAS would ensure better coherence and consistency 
in  the  application  of  the  related  EEAS’s  employment  policy.  The  Commission  has  delegated  to  the 
EEAS  its  powers  related  to  some  areas  of  the  management  of  local  agents,  however,  decisions  on 
particular  matters  such  as  the  authorisation  of  posts,  yearly  evaluation  exercise,  promotions, 
authorisation of external activities and termination have been retained within the Commission. Thanks 
to the transfer, the EEAS would gain more autonomy in managing these posts, including publication, 
selection and recruitment and closing or moving these posts. Appeal procedures during the evaluation 
and promotion of LA administrative staff would also be improved. 

The proposed transfer would allow the EEAS to gain additional management autonomy for a total of 
546  full-time  equivalent  staff  (FTE),  composed  of  527  LAs  and  19  CAs,  assigned  to  the 
administrative sections in Unions Delegations. 

(under  heading  6)  NDICI  and 

In terms of appropriations, EUR 18,1 million are proposed to be transferred annually from the external 
instruments 
(respectively  EUR 16,0 million  and 
EUR 2,1 million)  to  the  section  of  the  EEAS  (under  heading  7).  To  respect  the  overall  budget 
neutrality of this transfer, the respective envelope of the two instruments concerned is proposed to be 
reduced accordingly. As a result, the increased commitment margin available under heading 6 will be 
offset by a corresponding decrease of the commitment margin under heading 730. 

IPA III 

30  

The transfer also includes the common costs (related to the buildings and associated costs of the infrastructure) of 
177 LAs, whose salaries and common costs were previously paid by the European Development Fund (EDF). As 
from  2021,  the  EDF  will  be  part  of  NDICI,  an  annual  amount  of  EUR 5,6 million  will  therefore  also  be 
transferred  to  the  EEAS  for  the  common  costs  of  these  staff.  However,  this  annual  transfer  will  not  affect  the 
level  of  “fresh”  appropriations  in  NDICI  as  they  would  have  been  covered  from  remaining  EDF  assigned 
revenues to the Union budget. 

21 

 
 
 
                                                 
7.5  

Transfer of the Central Library from the Commission to the Publications Office 

In the framework of the synergies and efficiencies review the Commission has decided to transfer the 
management  of  the  Commission  Central  Library  to  the  Publications  Office  (OP)  as  from  January 
2021,  with  a  combined  impact  on  the  level  of  appropriations  limited  to  EUR 7 888  for  2021.  This 
transfer also encompasses the transfer of staff and IT resources. 

The  library  modernisation  programme  rolled  out  in  recent  years  (with  some  80%  of  purchases  in 
electronic  form),  is  expected  to  accelerate  with  the  transfer  and  bring  further  synergies  and 
complementarities with existing OP activities in the same publications and information management 
domain. 

7.6  

Transfer  of  2  establishment  plan  posts  from  the  European  Parliament  to  the 
Commission 

In line with the Insterinstitutional Agreement on CERT-EU (Computer Emergency Response Team)31, 
two  establishment  plan  posts  are  transferred  from  the  European  Parliament  (EP)  to  the  European 
Commission with a view to support the operations of CERT-EU. 

This  operation  results  in  the  reduction  of  2  posts  (AD 5)  from  the  EP  establishment  plan  and 
transferring them to the Commission’s establishment plan along with the relating appropriations (with 
a net impact of EUR 39 000). 

7.7 

EEAS contribution for the provision of baseline services by PMO 

As  of  2021,  the  costs  of  baseline  services  (including  salary  and  pension  calculation  and  payment, 
determination of individual entitlements and mission expenses, reimbursement of experts’ expenses, 
etc.) will no longer be charged from the Payment Master Office (PMO) to the other institutions. The 
related  budget  has  been  requested  in  the  Commission’s  budget  section  and  the  other  Institutions’ 
budget request has been decreased accordingly. 

However, pending the signature of a new service level agreement between PMO and the EEAS, EEAS 
has not reduced the related amount in its 2021 budget request. In order to avoid double-budgeting, a 
reduction of EUR 1,2 million is therefore incorporated in the Commission’s section. 

7.8 

Impact of the COVID-19 pandemic on the budget of the European Schools 

The COVID-19 pandemic makes it necessary for the European Schools to prepare for further periods 
of  distance  teaching  in  2021  and  to  buy  the  necessary  material.  Furthermore,  it  might  become 
necessary to engage additional teaching staff depending on the evolution of the situation in particular 
classes and teachers. The additional budgetary needs have been estimated until the end of the school 
year 2020/2021, i.e. they cover the first 8 months of 2021. 

In  the  same  context,  the  budget  request  of  the  Office  of  the  Secretary-General  of  the  European 
Schools has been revised downwards to take account of the fact that appropriations initially foreseen 
for  the  organisation  of  meetings  and  for  missions  organised  for  the  benefit  of  the  European  School 
system as a whole will not be needed.  

Based on the above elements, EUR 4 898 380 of additional appropriations for the European Schools 
are requested. 

7.9  

Impact of the relocation of the Ombudsman’s Brussels office 

The  European  Ombudsman  has  requested  additional  appropriations  to  finance  expenditure  linked  to 
the relocation of the Ombudsman’s Brussels offices. The information leading to this request was not 
available at the time when the Estimates for the 2021 budget were submitted in March 2020. 

31  

OJ C12, 13.1.2018, p. 1, Annex II. 

22 

 
 
 
                                                 
Based  on  the  information  available  since  early  September,  the  increased  needs  required  in  the 
Ombudsman’s budget amount to EUR 416 000. 

8. 

OTHER ADJUSTMENTS 

8.1  

Targeted reinforcements 

8.1.1  

Support to the Turkish-Cypriot Community 

The Union remains committed to Cyprus settlement and to the Turkish Cypriot community. Against 
the  backdrop  of  increased  regional  tensions  a  budget  increase  of  EUR 6 million  in  commitment 
appropriations is necessary compared to the level proposed in the DB 2021. 

Union  support  is  needed  for  a  solution  within  the  well-known  United  Nations  parameters  of  a  bi-
zonal,  bi-communal  Federation,  even  more  so  after  the  election  of  a  Turkish  Cypriot  leader  that 
regrettably  backs  a  two  State  model.  Hence,  it  is  crucial  that  the  Union  continues  with  sufficient 
funding  level  for  the  Aid  Programme  to  continue  the  efforts  of  supporting  socio  economic 
development  of  the  Turkish  Cypriot  community  and  bringing  the  two  communities  together  on 
concrete cooperation initiatives. 

8.1.2  

Social dialogue 

Social  partners  play  a  key  role  in  designing  and  implementing  the  measures  that  are  introduced  at 
Member States level to  mitigate the effects of the COVID-19 pandemic on workers and companies. 
However, the socioeconomic impact of the pandemic on employers and workers has had significant 
knock-on effects on national social partner organisations. 

It is therefore necessary to provide additional support targeting European and national cross-industry 
and  sectoral  employer  and  trade  union  organisations  and  especially  the  ones  mostly  affected  by  the 
COVID-19 crisis and being in the most vulnerable situation with a view to ensure their activities and 
to  address  the  employment  and  social  impact  of  COVID-19  crisis  and  strengthen  the  resilience  of 
workers and employers organisations in the context of COVID-19. 

As  a  result,  EUR 5 million  of  commitment  appropriations  (and  EUR 4,4 million  in  payment 
appropriations)  are added to the budget line 07 20 04 06 “Specific competences in the area of social 
policy, including social dialogue”. 

8.2  

Adaptation of the nomenclature 

On  top  of  the  modifications  to  the  nomenclature  described  in  previous  sections,  AL 1/2021  also 
includes the following adaptations. 

8.2.1   Neighbourhood, Development and International Cooperation Instrument (NDICI) 

The  DB 2021  included  one  budget  item  in  the  geographic  programme  for  the  Neighbourhood,  the 
“Sub-Saharan Africa”, the “Asia and the Pacific” as well as the “Americas and the Caribbean”. One 
single budget item was also included for the thematic budget lines on “global challenges” and “human 
rights  and  democracy”.  It  is  proposed  to  further  split  each  of  these  lines  to  enhance  further  the 
visibility of the spending allocated to each of the sub-regions or component concerned. 

The table below details for this instrument the changes compared to the DB 2021: 

Nomenclature In DB 2021 

Nomenclature in AL 1/2021 

15 02 01 

Geographic 
programmes 

15 02 01 01 

European 
Neighbourhood 

15 02 01 02 

Sub-Saharan Africa 

23 

15 02 01 10 
(new) 
15 02 01 11 
(new) 

15 02 01 12 
(new) 

15 02 01 20 
(new) 
15 02 01 21 

Southern neighbourhood 

Eastern neighbourhood 

Neighbourhood — Cross 
border, territorial cooperation 
and supporting measures 

West Africa 

East and Central Africa 

 
 
 
Nomenclature In DB 2021 

Nomenclature in AL 1/2021 

15 02 01 03 

Asia and the Pacific 

15 02 01 04 

Americas and the 
Caribbean 

15 02 01 05 

15 02 01 08 

15 02 01 06 

15 02 01 07 

Erasmus+ — NDICI 
contribution 
European Development 
Fund — ACP 
Investment Facility 
Reflows  
NDICI — Provisioning 
of the Common 
Provisioning Fund  
 European Union 
Recovery Instrument 
(EURI) — Provisioning 
of the Common 
Provisioning Fund 

15 02 02 01 

Human Rights and 
Democracy 

15 02 02 02 

15 02 02 03 

Civil Society 
Organisations 
Stability and Peace 

15 02 02 04  Global Challenges 

15 02 02 

Thematic programmes 

15 02 03 

Rapid Response action 

15 02 04 

Emerging challenges 
and priorities cushion 

15 02 03 01 
15 02 03 02 
15 02 03 03 

15 02 04 

Crisis response 
Resilience 
Foreign policy needs 
Emerging challenges and 
priorities cushion 

8.2.2  

Single Market Programme 

(new) 
15 02 01 22 
(new) 
15 02 01 30 
(new) 
15 02 01 31 
(new) 
15 02 01 32 
(new) 
15 02 01 40 
(new) 
15 02 01 41 
(new) 

15 02 01 50 

15 02 01 60 

Southern Africa and Indian 
Ocean 

Middle East and Central Asia 

South and East Asia 

The Pacific 

The Americas 

The Caribbean 

Erasmus+ — NDICI 
contribution 

European Development Fund 
— ACP Investment Facility 
Reflows  

15 02 01 70 

NDICI — Provisioning of the 
Common Provisioning Fund  

deleted 

- 

15 02 02 10 
(new) 

15 02 02 11 
(new) 

Election observation missions 
— human rights and democracy 
Fundamental rights and 
freedoms — human rights and 
democracy 

15 02 02 20 

Civil Society Organisations 

15 02 02 30 
15 02 02 40 
(new) 
15 02 02 41 
(new) 
15 02 02 42 
(new) 
15 02 02 43 
(new) 
15 02 03 10 
15 02 03 20 
15 02 03 30 

15 02 04 

Stability and Peace 

People — Global challenges 

Planet — Global challenges 

Prosperity — Global challenges 

Partnerships — Global 
challenges 
Crisis response 
Resilience 
Foreign policy needs 
Emerging challenges and 
priorities cushion 

In the light of the recent agreement between the co-legislators on the objectives of the Single Market 
Programme, it is proposed to create a new specific budget item for the “Market surveillance” within 
the Article 03 02 01 Making the internal market more effective. 

8.2.3  

Social policy (including social dialogue) 

It is proposed to split the budget line (and the related appropriations) covering the expenditure linked 
to  social  policy  (including  social  dialogue)  in  order  create  a  new  one  fully  dedicated  to  studies  or 
surveys or grants to research organisations. 

The table below details the change compared to the DB 2021: 

Nomenclature In DB 2021 

Nomenclature in AL 1/2021 

07 20 04 

Actions financed under 
the prerogatives of the 
Commission and 
specific powers 
conferred on the 
Commission 

07 20 04 06 

Specific competences in 
the area of social policy, 
including social dialogue 

07 20 04 06 

07 20 04 08 
(new) 

Specific competences in the 
area of social policy, including 
social dialogue 
Analysis of and studies on the 
social situation, demographies 
and the family  

24 

 
 
 
8.2.4 

Extension of the European High Performance Computing Joint Undertaking (EuroHPC) 

In  September,  the  Commission  has  adopted  a  proposal  for  a  Council  regulation  on  establishing  the 
European  High  Performance  Computing  Joint  Undertaking32  under  the  next  MFF  building  on  the 
existing EuroHPC, which was established in October 2018. 

Following  this  decision,  the  corresponding  budget  lines  have  been  included  in  AL 1/2021  for  the 
contributions coming from Horizon Europe, the Digital Europe Programme (DEP) and the Connecting 
Europe Facility (CEF). At this stage, no appropriations have been allocated to these new lines as the 
exact contribution from the three programmes is still to be determined during their strategic planning 
and programming. 

8.2.5   Creation of new budget lines for the two consultative bodies 

In spring 2020, the two  consultative bodies, the  European Economic  and Social Committee and the 
European  Committee  of  the  Regions,  agreed  on  the  establishment  of  a  carbon  emission  reduction 
target  and  the  related  timeline.  Amongst  other  recommendations  concerning  the  implementation  of 
this objective, the Committees have requested the creation in their respective section of a new budget 
line without appropriations for the CO2 offsetting as a preparatory measure. 

Due to the timing of the political decision on the introduction of a carbon emission scheme, the new 
budget  lines  (without  appropriations)  for  CO2  compensation  could  not  be  requested  by  the 
Committees in the DB 2021. 

8.2.6   Deletion of budget lines in the section of the European Data Protection Supervisor 

AL 1/2021  includes  the  deletion  of  three  lines  under  title  3  of  the  section  of  the  European  Data 
Protection Supervisor. 

8.3  

Technical updates 

8.3.1   Modification  of  the  establishment  plans  further  to  the  recourse  to  Article  53(1)  of  the 

Financial Regulation 

During 2020, the European Committee of the Regions and the European Data Protection Supervisor 
(EDPS)  have  modified  their  respective  establishment  plans  under  the  terms  of  Article  53(1)  of  the 
Financial Regulation. 

For the Committee of the Regions, this operation involved the conversion of one permanent AD 9 post 
into  one  temporary  AD 9  post  as  well  as  one  AST 4  post  into  one  AST/SC 5  post,  whereas  for  the 
EDPS,  it  involved  the  conversion,  within  the  establishment  plan  of  the  European  Data  Protection 
Board, of one AST 1 post into one AST/SC 2 post. 

Each of these conversions requires the modification of the related establishment plans for 2021. For 
the Committee, it also entails a limited reduction of the appropriations (-EUR 2 705). 

8.3.1  Modification of the text of some budget remarks 

On top  of the adaptations linked to the NGEU contribution  (see section 2.5 above),  AL 1/2021  also 
includes technical modifications of some budget remarks, which are visible in the budgetary annex. 

32  

COM(2020) 569 final, 18.9.2020. 

25 

 
 
 
 
 
                                                 
9. 

SUMMARY TABLE BY MFF HEADING 

Heading 

1. 

Single Market, Innovation and 
Digital 

Draft Budget 2021 

Amending Letter No 1/2021 

In EUR 

Draft Budget 2021 

(incl. AL 1/2021) 

CA 

PA 

CA 

PA 

CA 

PA 

21 359 970 100 

17 573 316 806 

- 665 439 753 

- 404 704 406 

20 694 530 347 

17 168 612 400 

Ceiling  

21 805 000 000 

Margin 

 445 029 900 

- 886 000 000 

- 220 560 247 

20 919 000 000 

 224 469 653 

2. 

Cohesion, Resilience and Values 

51 487 150 161 

62 625 181 841 

1 396 134 087 

3 579 956 198 

52 883 284 248 

66 205 138 039 

Ceiling  

51 730 000 000 

Of which under Flexibility Instrument 

Margin 

 242 849 839 

1 056 000 000 

 97 768 248 

- 242 365 839 

52 786 000 000 

 97 768 248 

  484 000 

2a 

Economic, social and territoral 
cohesion 

47 149 471 441 

58 687 290 538 

1 041 044 559 

3 180 607 007 

48 190 516 000 

61 867 897 545 

Ceiling 

47 150 000 000 

Margin 

  528 559 

1 041 000 000 

-  44 559 

48 191 000 000 

  484 000 

2b   Resilience and Values 

4 337 678 720 

3 937 891 303 

 355 089 528 

 399 349 191 

4 692 768 248 

4 337 240 494 

Of which under Flexibility Instrument 

Ceiling 

4 580 000 000 

Margin 

 242 321 280 

 15 000 000 

 97 768 248 

- 242 321 280 

4 595 000 000 

 97 768 248 

3. 

Natural Resources and 
Environment 

58 441 127 005 

56 249 546 448 

 81 685 531 

 552 385 050 

58 522 812 536 

56 801 931 498 

Ceiling 

58 656 000 000 

Margin 

 214 872 995 

- 32 000 000 

- 113 685 531 

58 624 000 000 

 101 187 464 

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

40 179 072 000 

40 164 860 883 

 188 882 000 

 188 882 000 

40 367 954 000 

40 353 742 883 

Sub-ceiling 

40 932 000 000 

Transfers between pillars 

- 753 928 000 

Rounding difference excluded from margin 
calculation 

 1 000 000 

- 7 000 000 

 196 882 000 

- 1 000 000 

40 925 000 000 

- 557 046 000 

EAGF Margin 

4. 

Migration and Border 
Management 

3 060 813 759 

2 723 483 549 

- 721 484 000 

 23 262 429 

2 339 329 759 

2 746 745 978 

Ceiling 

Margin 

3 287 000 000 

 226 186 241 

- 820 000 000 

- 98 516 000 

2 467 000 000 

 127 670 241 

5. 

Security and Defence 

2 189 025 780 

1 810 456 628 

- 479 764 339 

-1 139 828 385 

1 709 261 441 

 670 628 243 

Ceiling 

Margin 

2 359 000 000 

 169 974 220 

- 554 000 000 

- 74 235 661 

1 805 000 000 

 95 738 559 

6. 

Neighbourhood and the World 

16 113 620 000 

10 418 805 355 

- 53 405 718 

 360 653 839 

16 060 214 282 

10 779 459 194 

Ceiling 

16 179 000 000 

Margin 

 65 380 000 

 68 000 000 

 121 405 718 

16 247 000 000 

 186 785 718 

7. 

European Public Administration 

10 451 225 171 

10 452 500 260 

 5 912 740 

 5 912 740 

10 457 137 911 

10 458 413 000 

Ceiling 

10 875 000 000 

Margin 

 423 774 829 

- 240 000 000 

- 245 912 740 

10 635 000 000 

 177 862 089 

Of which: Administrative expenditure of 
the institutions 

8 032 227 818 

8 033 502 907 

 12 421 811 

 12 421 811 

8 044 649 629 

8 045 924 718 

Sub-ceiling 

8 467 000 000 

Margin 

 434 772 182 

- 250 000 000 

- 262 421 811 

8 217 000 000 

 172 350 371 

Total 

163 102 931 976 

161 853 290 887 

- 436 361 452 

2 977 637 465 

162 666 570 524 

164 830 928 352 

Ceiling 

164 891 000 000 

165 599 000 000 

-1 408 000 000 

 541 000 000 

163 483 000 000 

166 140 000 000 

Of which under Flexibility Instrument 

 582 907 835 

 97 768 248 

 641 077 815 

Margin 

1 788 068 024 

4 328 616 948 

- 873 870 300 

-2 378 467 485 

 914 197 724 

1 950 149 463 

Other special Instruments 

3 643 250 000 

1 661 812 000 

-2 172 415 000 

- 368 362 000 

1 470 835 000 

1 293 450 000 

Grand Total 

166 746 181 976 

163 515 102 887 

-2 608 776 452 

2 609 275 465 

164 137 405 524 

166 124 378 352 

26