CELEX: 52020PC0446
Language: en
Date: 2020-05-28
Title: Proposal for a COUNCIL REGULATION amending Council Regulation (EU, EURATOM) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020

EUROPEAN COMMISSION
            Brussels, 28.5.2020
            COM(2020) 446 final
            2020/0109(APP)
            Proposal for a
            COUNCIL REGULATION
            amending Council Regulation (EU, EURATOM) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020
            
               
         
         
            
               EXPLANATORY MEMORANDUM
            
            
            
               1.CONTEXT OF THE PROPOSAL
            
            
               The financing needs for urgent investments arising in the wake of the crisis are unprecedented. A decisive and extraordinary response at Union level is therefore necessary. Financial support needs to be frontloaded in the crucial first years of recovery, including in 2020. This will help to bridge the gap between first response measures and longer-term recovery. The scale of the intervention and its design must reflect the magnitude and urgency of the challenges facing the Union. The Commission is proposing to harness the full potential of the EU budget to mobilise investment and frontload financial support in the crucial first months and years of recovery.
            
            
               In recent weeks, the Commission has used all the remaining flexibility in the current EU budget to channel every available euro into saving lives and protecting livelihoods. These measures demonstrated the power of the EU budget to provide timely and substantial support to Member States in a crisis. They have also exhausted all remaining flexibility in the current EU budget, highlighting the urgent need to put in place new measures to drive the next and crucial phases of the recovery.
            
            
               It is therefore necessary to revise Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013
                  1
                laying down the multiannual financial framework for the years 2014-2020 to allow for frontloading of financial support as rapidly as possible already in 2020. This concerns notably any early need to finance the provisioning of the Solvency Support Instrument under the European Fund for Strategic Investment and the Union’s contribution to the capital increase of the European Investment Fund 
                  2
               , the frontloading of additional cohesion spending under REACT-EU
                  3
               , and increased financial means for the European Fund for Sustainable Development
                  4
               .
            
            
               2.LEGAL ELEMENTS OF THE PROPOSAL
            
            
               
                  In order to mobilise investment and frontload financial support in the crucial first months of recovery, this revision provides for an increase of the expenditure ceilings of the 2014-2020 multiannual framework for the year 2020.
               
               
                  The Commission proposes to increase the ceilings in commitment appropriations for the year 2020 as follows:
               
            
            
               –the ceiling on commitment appropriations for sub-Heading 1a ‘Competitiveness for growth and jobs’ is increased to the level of EUR 25 681 million (2011 prices);
            
            
               –the ceiling on commitment appropriations for sub- Heading 1b ‘Economic, social and territorial cohesion’ is increased to the level of EUR 53 109 million (2011 prices);
            
            
               –the ceiling on commitment appropriations for Heading 4 ‘Global Europe is increased to the level of EUR 9 665 million (2011 prices).
            
            
               
                  The proposed increases in commitment ceilings will result in an increase of payment needs of EUR 6 040 million, which is compatible with the 2020 annual payment ceiling as adjusted in the technical adjustment of May 2019
                     5
                  . For this reason, the Commission does not propose to revise the 2020 payment ceiling.
               
               
                  The Annex to Regulation (EU, Euratom) No 1311/2013 should therefore be amended and replaced by the Annex to this proposal.
               
               
                  Pursuant to Article 135(2) of the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community
                     6
                  , this Regulation should not apply to the United Kingdom insofar as it has an impact on the United Kingdom's financial obligations compared to those at the date of the withdrawal of the United Kingdom from the Union.
               
               
            
            
               2020/0109 (APP)
            
            
               Proposal for a
            
            
               COUNCIL REGULATION
            
         
         
            
               amending Council Regulation (EU, EURATOM) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020
            
            
               THE COUNCIL OF THE EUROPEAN UNION,
            
            
               Having regard to the Treaty on the Functioning of the European Union, and in particular Article 312 thereof,
            
            
               Having regard to the proposal from the European Commission,
            
            
               After transmission of the draft legislative act to the national parliaments,
            
            
               Having regard to the consent of the European Parliament
                  7
               ,
            
            
               Acting in accordance with a special legislative procedure,
            
            
               Whereas:
            
            
               (1)The COVID-19 outbreak and the associated public health and economic crisis, require extraordinary measures. Financing needs for urgent investments arising in the wake of the crisis are unprecedented. A decisive and extraordinary response at Union level is therefore necessary, and financial support needs to be frontloaded in the crucial first years of recovery, including in 2020.
            
            
               (2)It is necessary to cover financial needs in 2020 arising from new initiatives addressing the recovery. This concerns the Solvency Support Instrument and the Union’s contribution to the capital increase of the European Investment Fund
                  8
               , the reinforcement of the Investment for growth and jobs goal under the European Investment and Structural Funds (REACT-EU)
                  9
               , and the European Fund for Sustainable Development
                  10
               . 
            
            
               (3)It is therefore necessary to increase, for the year 2020, the ceilings in commitment appropriations of sub- Headings 1a and 1b and Heading 4. The Annex to Regulation (EU, Euratom) No 1311/2013 should therefore be amended accordingly.
            
            
               (4)Pursuant to Article 135(2) of the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community
                  11
               , this Regulation should not apply to the United Kingdom insofar as it has an impact on the United Kingdom's financial obligations compared to those at the date of the withdrawal of the United Kingdom from the Union. 
            
            
               HAS ADOPTED THIS REGULATION:
            
            
               Article 1
            
            
               The Annex to Regulation (EU, Euratom) No 1311/2013 is replaced by the text set out in the Annex to this Regulation.
            
            
               Article 2
            
            
               This Regulation shall enter into force on the date of its publication in the Official Journal of the European Union.
            
            
               This Regulation shall not increase the financial obligations of the United Kingdom in comparison with those it had at the date of its withdrawal from the Union.
            
            
               This Regulation shall be binding in its entirety and directly applicable in all Member States.
            
            
               Done at Brussels,
            
         
         
            
               
                     For the Council
               
               
                     The President
               
            
         
         
            
                  
                     (1)
                  
                        OJ L347, 20.12.2013, p. 884.
               
               
                  
                     (2)
                  
                        COM(2020)404
               
               
                  
                     (3)
                  
                        COM(2020)451
               
               
                  
                     (4)
                  
                        COM(2020)407
               
               
                  
                     (5)
                  
                        COM(2019)310 final of 15.05.2019
               
               
                  
                     (6)
                  
                        OJ L 29, 31.1.2020, p. 7.
               
               
                  
                     (7)
                  
                        OJ C , , p. .
               
               
                  
                     (8)
                  
                        COM(2020)404, OJ C , , p. .
               
               
                  
                     (9)
                  
                        COM(2020)451, OJ C , , p. .
               
               
                  
                     (10)
                  
                        COM(2020)407, OJ C , , p. .
               
               
                  
                     (11)
                  
                        OJ L 29, 31.1.2020, p. 7.
               
            
      
    ---documentbreak--- 
      
         
               EUROPEAN COMMISSION
            Brussels, 28.5.2020
            COM(2020) 446 final
            ANNEX
            to the
            Proposal for a Council Regulation
            amending Council Regulation (EU, EURATOM) n°1311/2013laying down the multiannual financial framework for the years 2014-2020TABLE - MULTIANNUAL FINANCIAL FRAMEWORK 2014-2020
            
               
         
         
            
               ANNEX
            
            
            
               MULTIANNUAL FINANCIAL FRAMEWORK (2014-2020)
            
            
                     
                        (EUR million - 2011 prices)
                     
                  
               
                     
                        COMMITMENT APPROPRIATIONS
                     
                  
                  
                     
                        2014
                     
                  
                  
                     
                        2015
                     
                  
                  
                     
                        2016
                     
                  
                  
                     
                        2017
                     
                  
                  
                     
                        2018
                     
                  
                  
                     
                        2019
                     
                  
                  
                     
                        2020
                     
                  
                  
                     
                        Total
                           2014-2020
                     
                  
               
                     
                        1. Smart and Inclusive Growth
                     
                  
                  
                     
                        49 713
                     
                  
                  
                     
                        72 047
                     
                  
                  
                     
                        62 771
                     
                  
                  
                     
                        65 277
                     
                  
                  
                     
                        66 528
                     
                  
                  
                     
                        68 214
                     
                  
                  
                     
                        78 790
                     
                  
                  
                     
                        463 340
                     
                  
               
                     
                        1a: Competitiveness for growth and jobs
                     
                  
                  
                     
                        15 605
                     
                  
                  
                     
                        16 321
                     
                  
                  
                     
                        16 726
                     
                  
                  
                     
                        17 693
                     
                  
                  
                     
                        18 490
                     
                  
                  
                     
                        19 700
                     
                  
                  
                     
                        25 681
                     
                  
                  
                     
                        130 216
                     
                  
               
                     
                        1b: Economic, social and territorial cohesion
                     
                  
                  
                     
                        34 108
                     
                  
                  
                     
                        55 726
                     
                  
                  
                     
                        46 045
                     
                  
                  
                     
                        47 584
                     
                  
                  
                     
                        48 038
                     
                  
                  
                     
                        48 514
                     
                  
                  
                     
                        53 109
                     
                  
                  
                     
                        333 124
                     
                  
               
                     
                        2. Sustainable Growth: Natural Resources
                     
                  
                  
                     
                        46 981
                     
                  
                  
                     
                        59 765
                     
                  
                  
                     
                        58 204
                     
                  
                  
                     
                        53 448
                     
                  
                  
                     
                        52 466
                     
                  
                  
                     
                        51 503
                     
                  
                  
                     
                        50 558
                     
                  
                  
                     
                        372 925
                     
                  
               
                     
                        of which: Market related expenditure and direct payments
                     
                  
                  
                     
                        41 254
                     
                  
                  
                     
                        40 825
                     
                  
                  
                     
                        39 808
                     
                  
                  
                     
                        39 201
                     
                  
                  
                     
                        38 446
                     
                  
                  
                     
                        37 452
                     
                  
                  
                     
                        36 723
                     
                  
                  
                     
                        273 709
                     
                  
               
                     
                        3. Security and citizenship
                     
                  
                  
                     
                        1 637
                     
                  
                  
                     
                        2 269
                     
                  
                  
                     
                        2 306
                     
                  
                  
                     
                        2 289
                     
                  
                  
                     
                        2 312
                     
                  
                  
                     
                        2 391
                     
                  
                  
                     
                        2 469
                     
                  
                  
                     
                        15 673
                     
                  
               
                     
                        4. Global Europe
                     
                  
                  
                     
                        7 854
                     
                  
                  
                     
                        8 083
                     
                  
                  
                     
                        8 281
                     
                  
                  
                     
                        8 375
                     
                  
                  
                     
                        8 553
                     
                  
                  
                     
                        8 764
                     
                  
                  
                     
                        9 665
                     
                  
                  
                     
                        59 575
                     
                  
               
                     
                        5. Administration 
                     
                  
                  
                     
                        8 218
                     
                  
                  
                     
                        8 385
                     
                  
                  
                     
                        8 589
                     
                  
                  
                     
                        8 807
                     
                  
                  
                     
                        9 007
                     
                  
                  
                     
                        9 206
                     
                  
                  
                     
                        9 417
                     
                  
                  
                     
                        61 629
                     
                  
               
                     
                        Of which: Administrative expenditure of the institutions
                     
                  
                  
                     
                        6 649
                     
                  
                  
                     
                        6 791
                     
                  
                  
                     
                        6 955
                     
                  
                  
                     
                        7 110
                     
                  
                  
                     
                        7 278
                     
                  
                  
                     
                        7 425
                     
                  
                  
                     
                        7 590
                     
                  
                  
                     
                        49.798
                     
                  
               
                     
                        6. Compensations 
                     
                  
                  
                     
                        27
                     
                  
                  
                     
                        0
                     
                  
                  
                     
                        0
                     
                  
                  
                     
                        0
                     
                  
                  
                     
                        0
                     
                  
                  
                     
                        0
                     
                  
                  
                     
                        0
                     
                  
                  
                     
                        27
                     
                  
               
                     
                        TOTAL COMMITMENT APPROPRIATIONS
                     
                  
                  
                     
                        114 430
                     
                  
                  
                     
                        150 549
                     
                  
                  
                     
                        140 151
                     
                  
                  
                     
                        138 196
                     
                  
                  
                     
                        138 866
                     
                  
                  
                     
                        140 078
                     
                  
                  
                     
                        150 899
                     
                  
                  
                     
                        973 169
                     
                  
               
                     
                  
                  
                     
                  
                  
                     
                  
                  
                     
                  
                  
                     
                  
                  
                     
                  
                  
                     
                  
                  
                     
                  
                  
                     
                  
               
                     
                        TOTAL PAYMENT APPROPRIATIONS
                     
                  
                  
                     
                        127 932
                     
                  
                  
                     
                        130 003
                     
                  
                  
                     
                        118 374
                     
                  
                  
                     
                        112 322
                     
                  
                  
                     
                        134 376
                     
                  
                  
                     
                        142 285
                     
                  
                  
                     
                        144 274
                     
                  
                  
                     
                        909 566