Source: EURLEX
Language: en
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# 52013DC0644

**AMENDING LETTER No 1 TO THE DRAFT GENERAL BUDGET 2014 STATEMENT OF EXPENDITURE BY SECTION Section III – Commission /\* COM/2013/0644 final \*/**

  

AMENDING LETTER No 1
TO THE DRAFT GENERAL BUDGET 2014

STATEMENT OF EXPENDITURE BY SECTION
Section III – Commission

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,

–
the Regulation (EU, Euratom) No 966/2012 of the
European Parliament and of the Council of 25 October 2012 on the Financial
Regulation applicable to the general budget of the Union[1], and in particular
Article 39 thereof,

–
the draft general budget of the European Union
for the financial year 2014 presented by the Commission on 28 June 2013[2],

the European
Commission hereby presents to the budgetary authority the amending letter
No 1 to the draft general budget of the European Union for the financial
year 2014 for the reasons set out in the explanatory memorandum.

TABLE OF
CONTENTS

1      Introduction.. 5

2      Frontloading
of Horizon 2020, Erasmus, COSME and YEI 5

2.1       Outcome
of MFF negotiations. 5

2.2       Impact
on heading 1a ¾ Competitiveness
for growth and jobs. 5

2.2.1       Frontloading
of Horizon 2020, COSME and Erasmus. 5

2.2.2       Backloading
of CEF-Energy and ITER.. 6

2.2.3       Revised
profile of heading 1a programmes. 7

2.3       Impact
on heading 1b ¾ Economic,
social and territorial cohesion.. 7

2.3.1       Initial
frontloading and backloading. 7

2.3.2       Additional
backloading. 7

2.3.3       Detailed
consequences. 8

3      Additional
assistance to Cyprus.. 8

3.1       Reasons
for the request.. 8

3.2       Financing
through the mobilisation of the Flexibility Instrument.. 9

4      New
generation of Joint Technology Initiatives.. 9

4.1       Legislative
proposals. 9

4.2       Impact
on human and financial resources. 10

5      Creation
of specific technical assistance budget lines for the Cohesion policy.. 11

5.1       Legislative
proposals. 11

5.2       Impact
on budget nomenclature. 12

6      Conclusion.. 12

7      Summary
table by heading of the financial framework.. 13

STATEMENT OF EXPENDITURE BY SECTION

The changes to
the statement of revenue and expenditure by section are available on EUR-Lex (http://eur-lex.europa.eu/budget/www/index-en.htm).
An English version of the changes to these statements by section is attached
for information as a budgetary annex.

1            Introduction

The Amending
Letter No 1 (AL 1) to the Draft Budget for 2014 (DB 2014) covers the
following:

¾
The frontloading of commitment appropriations
for the ‘Framework Programme for Research and Innovation’ (Horizon 2020), ‘Education,
Training, Youth and Sport’ (Erasmus), ‘Competitiveness of enterprises and small
and medium-sized enterprises’ (COSME), over and above the frontloading of the ‘Youth
Employment Initiative’ (YEI) already proposed in the DB 2014, as a result of
the political agreement reached at the end of June 2013 on the 2014-2020
mulitiannual financial framework (MFF).

¾
The additional assistance to Cyprus under the
Structural Funds, for which an amount of EUR 100 million is proposed
to be financed from the margin of heading 1b (EUR 21,6 million) and
by the mobilisation of the Flexibility Instrument (EUR 78,4 million).

¾
The consequences, in terms of human and
financial resources, of the proposed new generation of Joint Technology
Initiatives (JTIs).

¾
The creation of budget lines with a ‘p.m.’ in
order to allow part of the technical assistance national envelope of the European
Structural and Investment Funds (ESI) Funds to be managed by the Commission at
the request of Member States under temporary budget difficulties.

The net budgetary impact of these changes
is an increase in commitment appropriations of EUR 100 million
compared to the Draft Budget 2014. The Amending Letter does not propose any
change to payment appropriations.

2            Frontloading of Horizon 2020, Erasmus, COSME and YEI

2.1         Outcome of MFF negotiations

In line with the
political agreement reached on the 2014-2020 MFF, up to EUR 2 543 million
(in 2011 prices) may be frontloaded in 2014 and 2015, as part of the annual
budgetary procedure, for specific policy objectives relating to youth
employment, research, Erasmus, in particular for apprenticeships, and SMEs. The
agreement foresees that the frontloaded amounts (to be used as follows: EUR 2
143 million for Youth Employment, EUR 200 million for Horizon 2020, EUR 150
million for Erasmus and EUR 50 million for COSME) are fully offset against
appropriations within and/or between headings in order to leave unchanged the total
annual ceilings of each heading and sub-heading over the period 2014-2020.

This Amending
Letter No 1 to the 2014 Draft Budget takes account of the political agreement
reached on the new MFF by adjusting the 2014 financial envelopes of the
corresponding programmes under heading 1a (Competitiveness for growth and
jobs) and heading 1b (Economic, social and territorial cohesion) accordingly.
No changes are proposed as regards the frontloading for the ‘Youth Employment
Initiative’ (YEI) which was already included in the DB 2014. However, the
frontloading of programmes under heading 1a impacts on the amounts frontloaded
under heading 1b, as set out in more detail below.

2.2         Impact on heading 1a ¾ Competitiveness
for growth and jobs

2.2.1      Frontloading of Horizon 2020,
COSME and Erasmus

The Commission proposes
to frontload EUR 400 million (in 2011 prices) in 2014 and 2015 in heading 1a,
broken down as follows: EUR 200 million for Horizon 2020, EUR 150 million
for Erasmus and EUR 50 million for COSME. The total amount for all
three programmes over the period 2014-2020 remains unchanged. The corresponding
breakdown by programme is the following:

·
Horizon 2020: in
2011 prices the amounts frontloaded will be EUR 200 million in 2014
(EUR 212,2 million in current prices), with a 50/50 split between the
following two budget items: ‘15 03 01 01 ¾ Marie
Skłodowska-Curie actions — Generating new skills and innovation’, and ‘08 02 01 01 ¾ Strengthening
frontier research in ERC — European Research Council’.

·
COSME: the
resources available will increase by EUR 30 million in 2014 and EUR 20 million
in 2015 in 2011 prices (EUR 31,7 million and EUR 21,6 million
in current prices, respectively). The Commission proposes to focus most of the
frontloading (85 %) on financial instruments in favour of SMEs ‘02 02 02 ¾ Improving
access to finance for small and middle-sized enterprises (SMEs) in the form of
equity and debt’, with the remaining part for the budget article ‘02 02 01 ¾ Promoting
entrepreneurship and improving the competitiveness and access to markets of
Union enterprises’.

·
Erasmus: in 2011 prices
this programme will frontload EUR 130 million in 2014 and EUR 20 million
in 2015. The corresponding figures in current prices are EUR 137,5 million
and EUR 21,6 million, respectively. The additional amounts are to be
used for enhancing the ‘apprenticeship’ component (‘15 02 01 ¾ Promoting
excellence and cooperation in the European education, training and youth area, its
relevance to the labour market and the participation of young people in
European democratic life’).

2.2.2      Backloading of CEF-Energy and
ITER

In parallel with the
frontloading of Horizon 2020, COSME and Erasmus as set out above, the appropriations
foreseen for the energy strand of the ‘Connecting Europe Facility’ (CEF Energy)
and the ‘International Thermonuclear Experimental Reactor’ (ITER) are being
backloaded, taking into account also their specific implementation outlook over
the period.

·
ITER: an amount
of EUR 200 million (in 2011 prices) will be backloaded from 2014 to
2015, so as to take account the revised procurement planning. The ITER Fusion
for Energy Joint Undertaking (F4E) has worked closely with contractors to
obtain deliverables at lower than planned costs or better quality products for
the same price as lower specification products. This, however, has required the
review of initial plans and drawings which takes more time than originally
planned.

·
CEF-Energy: total
appropriations for the CEF Energy programme will decrease by EUR 160 million
in 2014 and by EUR 240 million in 2015 (in 2011 prices), to
counterbalance the frontloading of programmes under heading 1a. The total
amount for the programme over the seven year period remains unchanged. The time
profile of CEF-Energy in the indicative financial programming 2015-2020 is adapted
accordingly, taking account of the expected demands for funding for
infrastructure projects. In particular, a more linear progression of the
financial support is achieved in order to reflect the gradual winding up of the
CEF programme, taking into account at the same time the biennial cycle for the
renewal of the list of projects of common interest.

The readjustment in
the distribution between the four operational budget lines aims to align the Draft
Budget and the indicative financial programming to the latest results of the
negotiations over the CEF legal act, namely the introduction of a maximum 10 %
limit for the financial envelope available for financial instruments.

2.2.3      Revised profile of heading 1a programmes

The changes in the DB 2014
and the resulting changes in the indicative financial programming of the
programmes under heading 1a, stemming from the proposed frontloading and
backloading operations described above, is as follows (EUR million, in 2011
prices):

Programme || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

ITER || - 200,0 || + 200,0 || 0,0 || 0,0 || 0,0 || 0,0 || 0,0 || 0,0

Horizon 2020 || + 200,0 || 0,0 || - 25,0 || - 25,0 || - 50,0 || - 50,0 || - 50,0 || 0,0

Erasmus || + 130,0 || + 20,0 || - 63,8 || - 67,5 || - 12,5 || - 6,2 || 0,0 || 0,0

COSME || + 30,0 || + 20,0 || - 6,2 || - 12,5 || - 12,5 || - 18,8 || 0,0 || 0,0

CEF-Energy || - 160,0 || - 240,0 || + 95,0 || + 105,0 || + 75,0 || + 75,0 || + 50,0 || 0,0

For 2014, the table below
provides the corresponding amounts in current prices:

Programme || 2014

ITER || -212,2

Horizon 2020 || +212,2

Erasmus || +137,5

COSME || +31,7

CEF-Energy || -169,2

Total || 0,0

2.3         Impact on heading 1b ¾ Economic, social and
territorial cohesion

2.3.1      Initial frontloading and backloading

In its
2014 Draft Budget, the Commission proposed to frontload the Youth
Employment Initiative (YEI) by EUR 1 271,4 million (in 2011
prices) in order to strengthen the fight against youth unemployment. In the
Draft Budget, this frontloading was balanced by a corresponding reduction of
the Cohesion Fund contribution to the Connecting Europe Facility (CEF – Transport:
minus EUR 471,2 million in 2014); the European Territorial
Cooperation (ETC: minus EUR 640,2 million in 2014); and the
ceiling of heading 1a (minus EUR 160 million in 2014). While
such a frontloading operation was neutral over the period for all headings and
programmes concerned it entailed an adjustment between annual ceilings.

The
final political agreement on the MFF entails the acceptance of frontloading of a
number of programmes, but with no change in any annual ceiling. That is why
this Amending Letter proposes to reduce expenditure in heading 1b in the 2014
DB by EUR 160 million (in 2011 prices) to align it to the agreed 2014
ceiling.

2.3.2      Additional backloading

In
order to remain within the initial ceiling of heading 1b, the Commission
proposes a further back-loading of the European Territorial Cooperation (ETC)
by an additional EUR 160 million (in 2011 prices). The revised
profile for the ETC is also meant to better match the expected timing of the
adoption of the programmes in light of delays in the legislative process:
experience of previous programming periods shows that these programmes were
amongst the latest to be approved due to the relative complexity linked to
their cross-border operations.

The
new profile of expenditure (EUR million in 2011 prices) in heading 1b over the
period is shown in the table below[3]. The only change compared to the Draft Budget relates to the ETC;
all other expenditure remains unchanged.

|| 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

YEI - initial || 428,6 || 428,6 || 428,6 || 428,6 || 428,6 || 428,6 || 428,6 || 3 000,0

frontloading || +1 271,4 || + 871,4 || - 428,6 || - 428,6 || - 428,6 || - 428,6 || - 428,6 || 0,0

YEI revised || 1 700,0 ||  1 300,0 || 0,0 || 0,0 || 0,0 || 0,0 || 0,0 || 3 000,0

CEF-CF initial || 1 397,5 || 1 401,8 || 1 403,8 || 1 414,8 || 1 440,9 || 1 451,3 || 1 489,9 || 10 000,0

backloading || - 471,2 || - 277,5 || + 748,7 || 0,0 || 0,0 || 0,0 || 0,0 || 0,0

CEF-CF revised || 926,3 || 1 124,3 || 2 152,5 || 1 414,8 || 1 440,9 || 1 451,3 || 1 489,9 || 10 000,0

ETC initial[4] || 1 278,3 || 1 278,3 || 1 278,3 || 1 278,3 || 1 278,3 || 1 278,3 || 1 278,3 || 8 948,3

backloading || - 800,2 || - 593,9 || -320,1 || + 428,6 || + 428,6 || + 428,6 || + 428,6 || 0,0

ETC revised[5] || 478,1 || 684,4 || 958,2 || 1 706,9 || 1 706,9 || 1 706,9 || 1 706,9 || 8 948,3

2.3.3      Detailed consequences

Compared to the 2014 Draft
Budget, the adjusted profile implies a reduction of the proposed commitment
appropriations for the budget article ‘13 03 64 ¾ European
Regional Development Fund (ERDF) ¾ European Territorial Cooperation’ by EUR 169,2 million
(in current prices). No change is required for payment appropriations, since the
Commission had already assumed a lower level of appropriations for the ETC to
cover the pre-financing as compared to other Structural Funds programmes.

3            Additional assistance to Cyprus

3.1         Reasons for the request

During
its meeting held on 27-28 June 2013, the European Council concluded
that additional assistance should be granted to Cyprus. While the particular
impact of the economic crisis on the level of prosperity of a number of Member
States within the euro area had already been recognised in the Structural Funds
allocations as included in the conclusions of the European Council of February 2013,
the macro-economic assistance programme for Cyprus had not been decided at that
time. In view of this new development, the June European Council invited the
European Parliament and the Council to examine the opportunities provided by
the flexibilities in the MFF, including the Flexibility Instrument, to address
the particularly difficult situation of Cyprus[6].

The
Commission proposes to grant an additional allocation from the Structural Funds
to Cyprus over two years (spread in two equal tranches in 2014 and 2015) for a
total amount of EUR 200 million in current prices. This additional
amount would be included, over and above the initial allocation, in the
corresponding Cypriot Structural Funds programmes, which are financed by the
European Regional Development Fund (ERDF) and the European Social Fund (ESF),
exactly as all the other additional allocations that were identified for other
Member States last February.

Due to the economic crisis
and its negative impact on the financial sector, the Cypriot economy suffers
from a serious lack of liquidity. However, it is decisive to maintain the
development of many projects currently under preparation. These projects aim
primarily at promoting energy efficiency and renewable energy sources, as well
as at supporting small and medium-sized enterprises (SMEs) which are currently deprived from access to regular
financing from the banking sector. Additional EU financial assistance from the
ERDF will allow the financing and implementation of these projects.
Consequently, the supplementary ERDF funds will contribute to the re-activation
of the economy and the creation/maintenance of jobs which would otherwise be lost.

The continuing decline of
the employment rate and the rising unemployment, among young people in
particular, are being exacerbated by the fiscal, financial and economic crisis.
This requires enhanced support to improve employability prospects and create
job opportunities for unemployed and especially young people. Additional ESF
resources will allow the financing of the actions to be proposed under the
Youth Guarantee but more broadly reinforce the scope and effectiveness of active
labour market measures. Furthermore, additional ESF funding will serve the
implementation of reforms in the Cypriot public administration, health system
and social welfare system, to which it has committed under the Memorandum of
Understanding / Economic adjustment programme signed in April 2013.

The actual breakdown of
these additional appropriations between the ESF (EUR 30,7 million for the
budget article 04 02 62) and the ERDF (EUR 69,3 million for the budget article
13 03 62) in 2014 will depend on the final breakdown in the programmes as
requested by Cyprus authorities, in the same way as for all Structural Funds
programmes, within the limits set by the Regulation. Accordingly, the
Commission has followed a similar approach as in its Draft Budget, assuming
that the ESF share will be set at the minimum share defined by the latest stage
of the negotiations on the Common Provisions Regulation (CPR) on the European
Structural and Investment Funds (ESIF) and without prejudice to the final
agreement. In the case of Cyprus, this minimum share of the ESF would be 30,7%.
Once the programmes are finally agreed, the Commission will proceed with
transfers to adjust this breakdown as necessary.

3.2         Financing through the mobilisation of the Flexibility Instrument

In
order to grant additional assistance to Cyprus, the Commission proposes to
reinforce commitment appropriations by EUR 100 million (in current
prices) on top of the 2014 Draft Budget. As this additional amount exceeds
the margin under the expenditure ceiling of heading 1b, the Commission
proposes simultaneously to mobilise the Flexibility Instrument for 2014 for a
total amount of EUR 78,4 million in heading 1b, after having
used the remaining available margin (EUR 21,6 million) under the ceiling. Since
no reimbursements are foreseen in 2014, there is no need for an upward revision
of the payment appropriations.

4            New generation of Joint Technology Initiatives

4.1         Legislative proposals

More research
and innovation are critical in order to create sustainable economic growth and
jobs and to reinforce Europe's international competitiveness. A key element of the EU research and
innovation programme, Horizon 2020, is the proposal to
join forces with the private sector and with Member States, to achieve results
that one country or company is less likely to achieve alone. To this end, in
July 2013 the Commission adopted a series of legislative proposals to establish
public-private partnerships and public-public partnerships with Member States
under Horizon 2020.

Building on the experience
gained with Joint Technology Initiatives (JTIs) during the current 7th
Research Framework Programme (FP7), and the clear commitments from the industry
partners, JTIs under Horizon 2020 will benefit from a legal framework that is
better suited to strong industrial involvement and major simplification
achieved by making full use of the new provisions in the Financial Regulation,
which includes dedicated provisions on public-private partnerships, e.g.
explicit recognition of JTIs as public-private partnership bodies with the
possibility to adopt their own 'light' Financial Regulation adapted to their
specific needs.

With this overall aim of
establishing structured partnerships between the public and the private sector
to jointly develop, fund and implement ambitious research and innovation
agendas in mind, the Commission has proposed[7] to establish five JTIs at the start of Horizon 2020, each with clearly
defined objectives to achieve breakthroughs in the following areas:

·
Innovative Medicines Initiative (IMI2): to improve European citizens’ health and wellbeing by providing
new and more effective diagnostics and treatments such as new antimicrobial
treatments;

·
Bio-based Industries (BBI): to develop new and competitive bio-based value chains that replace
the need for fossil fuels and have a strong impact on rural development;

·
Fuel Cells and Hydrogen (FCH2): to develop commercially viable, clean, solutions that use hydrogen
as an energy carrier and of fuel cells as energy converters;

·
Clean Sky (Clean Sky 2): to radically reduce the environmental impact of the next
generation of aircraft;

·
Electronic Components and Systems for
European Leadership (ECSEL): to keep Europe at the forefront of electronic components and systems and bridge faster the gap to
exploitation.

Four of these proposals represent
the next stage for JTIs established under FP7 (including the Electronics Components
and Systems JTI (ECSEL) that merges the existing ARTEMIS and ENIAC JTIs). The
Bio-based Industries JTI (BBI) has been identified as a new initiative. It is
proposed that the JTIs will be operating until 2024. The proposals have impact
on the commitment appropriations until 2020.

In parallel with the JTIs,
the Commission has proposed[8] to extend the SESAR (Single European Sky Air Traffic Management
Research) Joint Undertaking (SJU) under Horizon 2020. The SESAR JU coordinates
the SESAR project, the technical pillar of the Single European Sky initiative
which aims at modernising Air Traffic Management (ATM) in Europe. Due to its
specific policy-oriented activities, SESAR was not set up as a JTI. The
proposed extension will ensure that the coordination of research and innovation
in the field of ATM is continued under Horizon 2020 in full consistency with
the Single European Sky (SES) policy objectives. In the same way as for the
JTIs, SESAR is supposed to be operating until 2024, whereas the proposal has
impact on the commitment appropriations until 2020.

4.2         Impact on human and financial resources

The operational and
support expenditure for each of the JTIs and SESAR in 2014 (in commitment and
payment appropriations) are proposed to be funded by redeployment from the
major operational budget lines of the Horizon 2020 programmes concerned, which
serve the same policy objectives. Overall, the redeployment of commitment and
payment appropriations within Horizon 2020 to allow the functioning of the five
JTIs and SESAR amounts to EUR 609,2 million in commitment
appropriations and EUR 76,9 million in payment appropriations.

The financial envelopes
for the JTIs and SESAR indicated above consist primarily of operational
appropriations to realise their policy objectives, as well as of a contribution
to their running costs, which are financed on a 50/50 basis with industry and
other partners in the joint undertaking. The overall amount of operational expenditure
to be managed by the JTIs and SESAR is foreseen to increase substantially over the
new MFF period. With this important increase in mind, the total staff numbers
of the five JTIs and SESAR combined are proposed to increase by 37 full-time
equivalents (‘FTE’) in 2014 as compared to the total staff numbers foreseen in
the 2014 Draft Budget, which reflected the phasing out of the current
generation of JTIs. To a large extent, this net increase results from the staff
numbers for the completely new Bio-based Industries JTI (+ 16 FTE in
2014), which is partly offset by the reduction of staff following the proposed merge
of ARTEMIS and ENIAC into ECSEL (-3 FTE in 2014).

The proposed overall staff
increase of 37 FTE can be broken down as follows: + 26 temporary
agents (of which 25 AD and 1 AST) and + 11 contract agents.
The corresponding salary needs of the additional staff numbers have been
calculated on an eight month basis, in order to take into account the estimated
recruitment time required. As an exception, however, the salary needs for BBI
are calculated on a six month basis, since this concerns a completely new body.

The administrative
expenditure linked to the additional staff numbers in the JTIs to manage part
of the operational appropriations under Horizon 2020 will be fully offset by a corresponding
reduction of administrative support expenditure under Horizon 2020 in the
Commission, so as keep total administrative expenditure under Horizon 2020
unchanged. Accordingly, the total EU contribution to the running costs of each
of the JTIs, amounting to EUR 3,5 million, will be taken from existing administrative
support expenditure budget lines under Horizon 2020 programmes.

The details of the human
and financial resources foreseen for the JTIs, including the proposed
redeployment, are set out in the budgetary annex.

5            Creation of specific technical assistance budget lines
for the Cohesion policy

5.1         Legislative proposals

In accordance with the
proposed provisions laid down in Article 51(1)(k) of the draft Common Provisions Regulation (CPR) on the European Structural and Investment Funds (ESIF), technical assistance at the initiative of the Commission may
cover measures to identify, prioritise and implement
structural and administrative reforms in response to economic and social
challenges in Member States which face temporary budgetary difficulties as
defined by Article 22(1) of the same draft Regulation.

A reinforcement of these
actions could be needed, at the request of a Member State concerned and in agreement with the
Commission, by transferring part of the national technical assistance to the
technical assistance at the initiative of the Commission. Such a reinforcement
will be used for the implementation of the abovementioned measures in relation to
the Member State concerned through direct or indirect management by the
Commission.

In the framework of the
inter-institutional negotiations on the draft CPR, in the legislative trilogue of 10 September 2013 the Commission
presented the relevant suggestions allowing a Member State to submit such a
request under a new provision to be added to the draft CPR Regulation (Article
22bis). Whereas the amount concerned would be managed as operational technical
assistance at the initiative of the Commission, it would however remain
accounted for within the limits of the national technical assistance envelope,
rather than being included under the ceiling devoted to technical assistance at
the initiative of the Commission.

5.2         Impact on budget nomenclature

In line with the
suggestions being considered in the legislative field, it is proposed to create
specific budget lines alongside the existing budget lines for the technical
assistance at the initative of the Commission, within the same article.

As the additional element
is proposed in the provisions common to all five ESI Funds, it is proposed to
create five budget lines with a token entry (‘p.m.’) and with the corresponding budget remarks. Possible needs can only
be assessed at a later stage upon request of the Member States concerned. This
operation would not entail any additional commitments or payments for the EU
Budget.

Therefore, the Commission
proposes to create the following five budget items (the corresponding impact on
the existing nomenclature is indicated in italics):

¾ || Item 04 02 63 02 ¾ European Social Fund (ESF) ¾ Operational Technical Assistance managed by the Commission at the request of a Member State (article 04 02 63 becomes item 04 02 63 01 within article 04 02 63)

¾ || Item 05 04 60 03 ¾ Operational Technical Assistance managed by the Commission at the request of a Member State (within article 05 04 60 ¾ European Agricultural Fund for Rural Development)

¾ || Item 11 06 63 02 — European Maritime and Fisheries Fund (EMFF) — Operational Technical Assistance managed by the Commission at the request of a Member State (article 11 06 63 becomes item 11 06 63 01 within article 11 06 63)

¾ || Item 13 03 65 02 — European Regional Development Fund (ERDF) — Operational Technical Assistance managed by the Commission at the request of a Member State (article 13 03 65 becomes item 13 03 65 01 within article 13 03 65)

¾ || Item 13 04 61 02 — Cohesion Fund (CF) — Operational Technical Assistance managed by the Commission at the request of a Member State (article 13 04 61 becomes item 13 04 61 01 within article 13 04 61)

6            Conclusion

This Amending Letter
aligns the 2014 Draft Budget with the outcome of the MFF negotiations.
Moreover, it takes account of the Commission proposals for the new generation
of Joint Technology Initiatives and the specific technical assistance for the
Cohesion policy. In doing so, the Amending Letter provides the updated basis
for a smooth adoption of the 2014 budget, awaiting the Commission proposals for
the delegation of spending programmes to executive agencies and the regular
autumn update of agricultural markets and fisheries, which the Commission will send
in time for the start of the Conciliation.

7            Summary table by heading of the financial framework

Heading || 2014 Draft budget (DB) || Amending Letter (AL) No 1 || 2014 DB + AL 1

CA || PA || CA || PA || CA || PA

1. || Smart and inclusive growth || 63 824 732 827 || 62 788 667 818 || 100 000 000 || || 63 924 732 827 || 62 788 667 818

Ceiling || 63 973 000 000 || || || || 63 973 000 000 ||

Margin || 148 267 173 || || || || 126 647 173 ||

1a || Competitiveness for growth and jobs || 16 264 152 827 || 11 694 938 804 || 169 200 000 || || 16 433 352 827 || 11 694 938 804

Ceiling (1) || 16 390 000 000 || || || || 16 560 000 000 ||

Margin || 125 847 173 || || || || 126 647 173 ||

1b || Economic, social and territorial cohesion || 47 560 580 000 || 51 093 729 014 || -69 200 000 || || 47 491 380 000 || 51 093 729 014

Ceiling (1) || 47 583 000 000 || || || || 47 413 000 000 ||

Margin || 22 420 000 || || || || 21 620 000 ||

Flexibility Instrument || || || || || 78 380 000 ||

Margin || 22 420 000 || || || || 0 ||

2. || Sustainable growth: natural resources || 59 247 714 684 || 56 532 492 046 || || || 59 247 714 684 || 56 532 492 046

Ceiling || 59 303 000 000 || || || || 59 303 000 000 ||

Margin || 55 285 316 || || || || 55 285 316 ||

Of which: European Agricultural Guarantee Fund (EAGF) — Market related expenditure and direct payments || 43 778 100 000 || 43 776 956 403 || || || 43 778 100 000 || 43 776 956 403

Sub-ceiling || 44 130 000 000 || || || || 44 130 000 000 ||

Net transfer between EAGF and EAFRD || 351 900 000 || || || || 351 900 000 ||

Margin || 0 || || || || 0 ||

3. || Security and citizenship || 2 139 460 732 || 1 668 006 729 || || || 2 139 460 732 || 1 668 006 729

Ceiling || 2 179 000 000 || || || || 2 179 000 000 ||

Margin || 39 539 268 || || || || 39 539 268 ||

4. || Global Europe || 8 175 802 134 || 6 251 299 380 || || || 8 175 802 134 || 6 251 299 380

Ceiling || 8 335 000 000 || || || || 8 335 000 000 ||

Margin || 159 197 866 || || || || 159 197 866 ||

5. || Administration || 8 595 115 307 || 8 596 738 107 || || || 8 595 115 307 || 8 596 738 107

Ceiling || 8 721 000 000 || || || || 8 721 000 000 ||

Margin || 125 884 693 || || || || 125 884 693 ||

Of which: Administrative expenditure of the institutions || 6 936 293 672 || 6 937 916 472 || || || 6 936 293 672 || 6 937 916 472

Sub-ceiling || 7 056 000 000 || || || || 7 056 000 000 ||

Margin || 119 706 328 || || || || 119 706 328 ||

6. || Compensations || 28 600 000 || 28 600 000 || || || 28 600 000 || 28 600 000

Ceiling || 29 000 000 || || || || 29 000 000 ||

Margin || 400 000 || || || || 400 000 ||

Total || 142 011 425 684 || 135 865 804 080 || 100 000 000 || || 142 111 425 684 || 135 865 804 080

Ceiling || 142 540 000 000 || 135 866 000 000 || || || 142 540 000 000 || 135 866 000 000

Flexibility Instrument || || || || || 78 380 000 ||

Margin || 528 574 316 || 195 920 || || || 506 954 316 || 195 920

|| Outside the multiannual financial framework (MFF) || 456 181 000 || 200 000 000 || || || 456 181 000 || 200 000 000

Grand Total || 142 467 606 684 || 136 065 804 080 || 100 000 000 || || 142 567 606 684 || 136 065 804 080

(1) The ceilings shown in the column for the Draft Budget reflect the state of the MFF negotiations at the time of the adoption of the Draft Budget, whereas the ceilings shown in the column for the Amending Letter take account of the political agreement finally reached at the end of June 2013.

[1]               OJ L
298, 26.10.2012, p. 1.

[2]               COM(2013) 450.

[3]               Figures rounded to one decimal and without prejudice to
Article 9g of the draft MFF Regulation.

[4]               Including the 0,35 % contribution to technical
assistance at the initiative of the Commission to be deducted from the amount
to be budgeted on this article.

[5]               Including the 0,35 % contribution to technical assistance
at the initiative of the Commission to be deducted from the amount to be
budgeted on this article.

[6]               Point 18 of the European Council Conclusions of
June 2013.

[7]               COM(2013) 495, COM(2013) 496,
COM(2013) 501, COM(2013) 505 and COM(2013) 506, 10.7.2013.

[8]               COM(2013) 503, 10.7.2013.

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