Explanatory Memorandum to COM(2012)340 - Amending budget N° 4 to the budget 2012, Section III – Commission

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dossier COM(2012)340 - Amending budget N° 4 to the budget 2012, Section III – Commission.
source COM(2012)340 EN
date 20-06-2012
52012DC0340

DRAFT AMENDING BUDGET N° 4 TO THE GENERAL BUDGET 2012 GENERAL STATEMENT OF REVENUE STATEMENT OF EXPENDITURE BY SECTION Section III – Commission /* COM/2012/0340 final */


DRAFT AMENDING BUDGET N° 4 TO THE GENERAL BUDGET 2012

GENERAL STATEMENT OF REVENUE 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 Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities[1], and in particular Article 37 thereof,

– the general budget of the European Union for the financial year 2012 adopted on 1 December 2011[2],

– the amending budget No 1/2012 adopted on 20 April 2012,

– the amending budget No 2/2012, adopted on 12 June 2012,

– the draft amending budget No 3/2012, as amended following amending budget No 2/2012

The European Commission hereby presents to the budgetary authority the Draft Amending Budget No 4 to the 2012 budget.

Contents

1.

CHANGES TO THE STATEMENT OF REVENUE AND EXPENDITURE BY SECTION


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

2.

TABLE OF CONTENTS


3.

1. Introduction.. 4


4.

2. Own Resources.. 4


5.

2.1. Introduction.. 4


6.

2.2. Revision of the forecast of TOR, VAT and GNI bases. 5


7.

2.3. 2008, 2010 and 2011 UK correction.. 7


8.

2.3.1 Introduction.. 7


9.

2.3.2 Calculation of the corrections. 8


10.

2.3.3 Entry in the DAB 4/2012 of the 1st update of the 2011 UK correction, of the 2nd update of the 2010 UK correction and of the definitive amount of the 2008 UK correction.. 11


11.

2.4 Revision of the financing of the gross reductions in GNI payments of Sweden and the Netherlands in 2012 12


12.

3. Risk-Sharing Instruments.. 13


13.

3.1 Introduction.. 13


14.

3.2 New Expenditure Budget Lines. 13


15.

3.3 New Revenue Budget Line. 14


16.

4. Modification of the Budget Line. 14


17.

1. Introduction


Draft Amending Budget (DAB) No 4 for the year 2012 concerns the following:

– A revision of the forecast of Traditional Own Resources (TOR, i.e. customs duties and sugar sector levies), VAT and GNI bases, the budgeting of the relevant UK corrections as well as their financing and revision of financing of GNI reductions in favour of the Netherlands and Sweden in 2012, resulting in a change in the distribution between Member States of their own resources contributions to the EU budget,

– The creation of four new budget lines for the implementation of risk-sharing instruments financed from the European Regional Development Fund (ERDF) and the Cohesion Fund, all with a token entry (p.m.),

– Modification of the budget line 16 03 05 01 – Preparatory action – EuroGlobe to replace the 'dash' for payments on the line with a token entry (p.m.), in order to allow the final payments to be made.

18.

2. Own Resources


19.

2.1. Introduction


The following summary table shows the distribution of total own resources payments between Member States as budgeted in:

– The 2012 Budget,

– The Draft Amending Budget (DAB) 3/2012 is intended to budget the surplus resulting from the implementation of the budget year 2011 of EUR 1 496 968 014, which is therefore entered as revenue in the 2012 budget,

– The present DAB 4/2012.

20.

amounts in million euro


|| Budget DAB 3/| DAB 4/|| DAB 4/2012 vs. DAB 3/2012

|| (1)| (2)| (3)| in %| (4) = (3) – (2)

BE| 5 232,| 5 188,| 5 215,| 4,14%| + 27,0

BG| 411,| 407,| 410,| 0,33%| + 3,4

CZ| 1 599,| 1 581,| 1 529,| 1,21%| - 52,0

DK| 2 595,| 2 566,| 2 631,| 2,09%| + 64,9

DE| 25 438,| 25 130,| 25 219,| 20,01%| + 88,6

EE| 164,| 162,| 171,| 0,14%| + 8,7

IE| 1 381,| 1 366,| 1 377,| 1,09%| + 11,0

EL| 2 205,| 2 180,| 1 965,| 1,56%| - 215,5

ES| 11 316,| 11 192,| 10 730,| 8,52%| - 461,7

FR| 20 880,| 20 639,| 20 924,| 16,60%| + 284,4

IT| 16 443,| 16 258,| 16 091,| 12,77%| - 166,9

CY| 200,| 198,| 181,| 0,14%| - 17,2

LV| 191,| 188,| 210,| 0,17%| + 21,1

LT| 323,| 320,| 329,| 0,26%| + 9,1

LU| 324,| 320,| 303,| 0,24%| - 16,7

HU| 1 101,| 1 088,| 896,| 0,71%| - 192,1

MT| 70,| 70,| 65,| 0,05%| - 4,2

NL| 6 359,| 6 286,| 6 101,| 4,84%| - 184,9

AT| 2 706,| 2 671,| 2 816,| 2,23%| + 144,5

PL| 4 060,| 4 015,| 3 643,| 2,89%| - 371,9

PT| 1 648,| 1 629,| 1 625,| 1,29%| - 3,7

RO| 1 359,| 1 343,| 1 349,| 1,07%| + 5,4

SI| 422,| 418,| 401,| 0,32%| - 16,7

SK| 755,| 747,| 752,| 0,60%| + 5,3

FI| 1 985,| 1 962,| 2 003,| 1,59%| + 40,4

SE| 3 534,| 3 487,| 3 537,| 2,81%| + 49,9

UK| 14 797,| 14 590,| 15 530,| 12,32%| + 939,8

EU| 127 512,| 126 015,| 126 015,| 100,00%| + 0

21.

2.2. Revision of the forecast of TOR, VAT and GNI bases


According to established practice, the Commission proposes to revise the financing of the budget on the basis of more recent economic forecasts, adopted at a meeting of the Advisory Committee on Own Resources (ACOR).

The revision concerns the forecast of Traditional Own Resources (TOR) to be paid to the budget in 2012 as well as the forecast of the 2012 Value Added Tax (VAT) and Gross National Income (GNI) bases. The forecast in the 2012 Budget (and in AB 1/2012 to DAB 3/2012) was established at the 151st ACOR meeting on 17 May 2011. The revised forecast taken into account in the present DAB 4/2012 was adopted at the 154th ACOR meeting on 21 May 2012. The use of an updated forecast of own resources improves the accuracy of the payments that Member States are asked to make during the budgetary year and reduces the unavoidable forecasting errors from the previous year.

As compared to the forecast agreed in May 2011, the forecast agreed in May 2012 has been revised as follows:

– The total forecast of 2012 net sugar sector levies has not changed and remains EUR 123,4 million (after deduction of 25 % in collection costs).

– Total 2012 net customs duties (including duties on agricultural products) are now forecast at EUR 17 650,8 million (after deduction of 25 % in collection costs), which represents a decrease by – 7,9 % relative to the May 2011 forecast of EUR 19 171,2 million. The main reason for this decrease is lower estimated average tariff (1,32% instead of 1,45%). The forecast was made on a Member State basis, using forecast growth rates of extra-EU imports as published in the spring 2012 economic forecasts on 11 May 2012.

– The total 2012 EU uncapped VAT base is now forecast at EUR 5 779 304,1 million, which represents an increase of + 0,4 % as compared to the May 2011 forecast of EUR 5 756 405,2 million. The total 2012 EU capped VAT base[3] is forecast at EUR 5 763 295,6 million, which represents an increase of + 0,4 % as compared to the May 2011 forecast of EUR 5 740 777,2 million.

– The total 2012 EU GNI base is forecast at EUR 12 878 244,7 million, which represents a decrease of - 1,9 % as compared to the May 2010 forecast of EUR 13 130 916,3 million.

The exchange rates of 30 December 2011 have been used for converting the forecast VAT and GNI bases in national currency into euro (for the ten Member States that are not members of the euro zone). This avoids distortions since it is this rate which is used to convert budgeted own resources payments from euro into national currency when the amounts are called in (as stipulated in Article 10(3) of Council Regulation No 1150/2000).

The revised forecasts of TOR, uncapped VAT bases and GNI bases for 2012, as adopted at the 154th ACOR meeting on 21 May 2012, are set out in the following table (rounded figures):

22.

Revised forecasts of TOR, VAT and GNI bases for 2011 (in million EUR)


|| Sugar levies (75%)| Customs duties (75%)| Uncapped VAT bases| GNI bases| Capped VAT bases[4]

BE| 6,| 1 709,| 164 200,| 384 015,| 164 200,60

BG| 0,| 54,| 17 944,| 38 430,| 17 944,90

CZ| 3,| 229,| 64 537,| 140 367,| 64 537,50

DK| 3,| 347,| 99 128,| 253 673,| 99 128,20

DE| 26,| 3 600,| 1 165 502,| 2 672 592,| 1 165 502,00

EE| 0,| 23,| 7 880,| 15 872,| 7 880,50

IE| 0,| 209,| 61 788,| 125 496,| 61 788,70

EL| 1,| 140,| 89 493,| 199 825,| 89 493,60

ES| 4,| 1 178,| 479 157,| 1 036 829,| 479 157,00

FR| 30,| 1 764,| 954 295,| 2 079 550,| 954 295,30

IT| 4,| 1 763,| 652 675,| 1 578 251,| 652 675,90

CY| 0,| 21,| 14 218,| 17 237,| 8 618,75

LV| 0,| 24,| 6 894,| 20 989,| 6 894,40

LT| 0,| 49,| 11 421,| 31 245,| 11 421,90

LU| 0,| 15,| 23 664,| 31 069,| 15 534,90

HU| 2,| 105,| 34 764,| 87 872,| 34 764,00

MT| 0,| 10,| 4 701,| 5 952,| 2 976,15

NL| 7,| 1 986,| 268 334,| 608 481,| 268 334,10

AT| 3,| 208,| 138 765,| 308 548,| 138 765,20

PL| 12,| 373,| 171 886,| 351 257,| 171 886,50

PT| 0,| 128,| 78 381,| 160 867,| 78 381,50

RO| 1,| 115,| 48 853,| 137 935,| 48 853,10

SI| 0,| 77,| 17 956,| 34 804,| 17 402,00

SK| 1,| 127,| 25 074,| 70 157,| 25 074,50

FI| 0,| 157,| 90 991,| 200 276,| 90 991,50

SE| 2,| 511,| 177 296,| 405 983,| 177 296,70

UK| 9,| 2 719,| 909 496,| 1 880 661,| 909 496,20

EU| 123,| 17 650,| 5 779 304,| 12 878 244,| 5 763 295,60

23.

2.3. 2008, 2010 and 2011 UK correction


24.

2.3.1 Introduction


The correction of budgetary imbalances in favour of the United Kingdom (UK correction), to be budgeted in the present DAB, concerns three years: 2008, 2010 and 2011.

The 2008, 2010 and 2011 UK corrections are subject to the rules of Council Decision (EC, Euratom) No 2007/436 and its accompanying working document, the 2007 Calculation Method[5]. Pursuant to the rules of this Decision, the net TOR “windfall gains” of the UK resulting from the increase as from 2001 in the percentage of TOR retained by Member States as a compensation for their collection costs are neutralised and the allocated expenditure is adjusted by:

– pre-accession expenditure (PAE) paid under appropriations for payments relating to the year preceding the enlargement. The same adjustment for PAE will be followed at the occasion of each future enlargement of the Union but it will cease to apply as from the correction to be budgeted for the first time in 2014;

– for the 2008 correction 20 %, for 2010 and 2011 UK corrections 100 % of total allocated expenditure in Member States that have acceded to the EU after 30 April 2004, except for agricultural direct payments and market-related expenditure as well as that part of the rural development expenditure originating from the EAGGF, Guarantee section. This reduction is to be phased-in progressively (20 % for 2008 correction budgeted in 2009, 70 % for 2009 correction budgeted in 2010 and 100 % as from 2010 correction budgeted in 2011).

Furthermore, the share of Austria, Germany, the Netherlands and Sweden in the financing of the UK correction is reduced to one fourth of their normal share. The reduction is financed by the other Member States, excluding the UK.

The difference between the definitive amount of the 2008 UK correction and the amount previously budgeted (2nd update in AB 4/2010) as well as the difference between the 2nd update of the 2010 correction and the amount previously budgeted (1st update in AB 5/2011) are entered under chapters 35 and 36 of DAB 4/2012.

The amount of the 1st update of the 2011 UK correction is entered under chapter 15 of the DAB 4/2012, as a replacement of the provisional amount of the 2011 UK correction entered under chapter 15 of the Budget 2012.

25.

2.3.2 Calculation of the corrections


In the present DAB, the calculation and financing of the 1st update of the 2011 UK correction, the 2nd update of the 2010 correction and the definitive amount of the 2008 UK correction are entered.

As far as the 2009 UK correction is concerned, the Commission shall (according to the 2007 Calculation Method) propose to budget an update if they differ significantly from the corresponding previously budgeted calculation. According to the Commission’s current calculations, the amount of the 2009 UK correction does not differ significantly from the 1st update of the 2009 UK correction entered in AB 4/2010. Consequently, the update is not proposed for budgeting in the present DAB 4/2012.

26.

2.3.2.1 2011 UK correction


The following table summarises the changes between the provisional amount of the 2011 UK correction entered in Budget 2012 and the 1st update of the 2011 UK correction to be entered in DAB 4/2012.

|| 2011 UK correction| 2011 UK correction PROVISIONAL Budget 2011 UK correction 1st UPDATE DAB 4/| Difference

UK share of uncapped VAT base| 15.0054%| 14.9462%| - 0.0592%

UK share of enlargement-adjusted total allocated expenditure| 7.6164%| 7.3204%| - 0.2960%

= (1) - (2)| 7.3890%| 7.6259%| + 0.2369%

Total allocated expenditure| 114 982 094 116 689 113 + 1 707 019 031

Enlargement-related expenditure = (5a) + (5b)| 29 243 025 26 918 339 - 2 324 685 560

(5a) Pre-accession expenditure| 3 047 748 3 037 294 - 10 454 167

(5b) Expenditure related to Art 4(1)(g)| 26 195 276 23 881 045 - 2 314 231 393

Enlargement-adjusted total allocated expenditure = (4) - (5)| 85 739 069 89 770 774 + 4 031 704 591

UK correction original amount = (3) x (6) x 0.| 4 181 273 4 518 220 + 336 947 325

UK advantage| 319 474 534 381 + 214 907 339

Core UK correction = (7) - (8)| 3 861 799 3 983 839 + 122 039 986

TOR windfall gains| 61 357 8 838 - 52 519 710

UK correction = (9) - (10)| 3 800 441 3 975 000 + 174 559 696

The 1st update of the 2011 UK correction is EUR 175 million higher as compared to the provisional amount of the 2011 UK correction entered in Budget 2012.

For the 2011 UK correction the difference in the original amount of the UK correction between Own Resources Decision (ORD) 2000 and ORD 2007 is EUR 2 144,6 million in 2004 prices and EUR 2 355,7 million in current prices.

27.

2.3.2.2 2010 UK correction


The following table summarises the changes between the 1st update of the 2010 UK correction entered in AB 4/2011 and the 2nd update of the 2010 UK correction to be entered in DAB 4/2012.

|| 2010 UK correction| 2010 UK correction 1st update AB 4/| 2010 UK correction 2nd update DAB 4/| Difference

UK share of uncapped VAT base| 15.0995%| 15.3613%| + 0.2617%

UK share of enlargement-adjusted total allocated expenditure| 7.7390%| 7.7118%| - 0.0272%

= (1) - (2)| 7.3605%| 7.6495%| + 0.2889%

Total allocated expenditure| 111 581 136 111 424 575 - 156 560 609

Enlargement-related expenditure = (5a) + (5b)| 23 885 731 23 860 842 - 24 888 649

(5a) Pre-accession expenditure| 2 978 639 2 970 335 - 8 303 272

(5b) Expenditure related to Art 4(1)(g)| 20 907 092 20 890 506 - 16 585 377

Enlargement-adjusted total allocated expenditure = (4) - (5)| 87 695 404 87 563 732 - 131 671 960

UK correction original amount = (3) x (6) x 0.| 4 260 193 4 420 776 + 160 583 707

UK advantage| 388 810 768 620 + 379 809 897

Core UK correction = (7) - (8)| 3 871 382 3 652 156 - 219 226 190

TOR windfall gains| 29 810 21 614 - 8 196 616

UK correction = (9) - (10)| 3 841 571 3 630 542 - 211 029 573

The 2nd update of the 2010 UK correction is EUR 211 million lower as compared to the 1st update of the 2010 UK correction entered in AB 4/2011.

For the 2010 UK correction the difference in the original amount of the UK correction between Own Resources Decision (ORD) 2000 and ORD 2007 is EUR 1 957 million in 2004 prices and EUR 2 118 million in current prices.

28.

2.3.2.3 2008 UK correction


The following table summarises the changes between the 2nd update of the 2008 UK correction entered in AB 4/2010 and the definitive amount of the 2008 UK correction to be entered in DAB 4/2012.

|| 2008 UK correction| 2008 UK correction 2nd update AB 4/| 2008 UK correction Definitive amount DAB 4/| Difference

UK share of uncapped VAT base| 15.7045%| 15.7929%| + 0.0884%

UK share of enlargement-adjusted total allocated expenditure| 7.3387%| 7.3458%| + 0.0071%

= (1) - (2)| 8.3658%| 8.4471%| + 0.0813%

Total allocated expenditure| 105 538 033 105 436 390 - 101 642 699

Enlargement-related expenditure = (5a) + (5b)| 5 908 600 5 903 524 - 5 076 161

(5a) Pre-accession expenditure| 3 014 323 3 009 247 - 5 076 161

(5b) Expenditure related to Art 4(1)(g)| 2 894 276 2 894 276 + 0

Enlargement-adjusted total allocated expenditure = (4) - (5)| 99 629 433 99 532 866 - 96 566 537

UK correction original amount = (3) x (6) x 0.| 5 500 964 5 549 050 + 48 085 644

UK advantage| 289 477 371 343 + 81 865 937

Core UK correction = (7) - (8)| 5 211 487 5 177 706 - 33 780 294

TOR windfall gains| -42 810 -45 867 - 3 056 839

UK correction = (9) - (10)| 5 254 297 5 223 574 - 30 723 455

The definitive amount of the 2008 UK correction is EUR 30,7 million lower as compared to the 2nd update of the 2008 UK correction entered in AB 4/2010.

For the 2008 UK correction the difference in the original amount of the UK correction between Own Resources Decision (ORD) 2000 and ORD 2007 is EUR 280,6 million in 2004 prices and EUR 301,7 million in current prices.

29.

2.3.2.4 EUR 10,5 billion ceiling


According to article 4(2) of Decision 2007/436, during the period 2007-2013 the additional contribution of the United Kingdom resulting from the reduction of allocated expenditure by the expenditure related to enlargement as referred to in paragraph (1)(g) of ORD 2007 shall not exceed EUR 10,5 billion, measured in 2004 prices. The cumulative effect of 2007 to 2012 corrections is EUR 5 657,5 million in 2004 prices and EUR 6 125,2 million in current prices.

2007-2012 UK corrections Difference in original amount in reference to EUR 10,5 billion threshold (ORD 2007 vs. ORD 2000), in EUR| Difference in current prices| Difference in constant 2004 prices

(A) 2007 UK correction| 0

(B) 2008 UK correction| -301 679 - 280 649 108

(C) 2009 UK correction| -1 349 840 - 1 275 338 491

(D) 2010 UK correction| -2 117 969 - 1 956 957 875

(E) 2011 UK correction| -2 355 745 - 2 144 599 880

(F) 2012 UK correction| n/a| n/a

(G) Sum of differences = (A) + (B) + (C) + (D) + (E) + (F)| -6 125 235 5 657 545 355

30.

2.3.3 Entry in the DAB 4/2012 of the 1st update of the 2011 UK correction, of the 2nd update of the 2010 UK correction and of the definitive amount of the 2008 UK correction


31.

2.3.3.1 2011 UK correction (chapter 15)


The amount of the UK correction to be budgeted in chapter 15 of the present DAB 4/2012 is the amount of the 1st update of the 2011 UK correction (i.e. EUR 3 975 000 971, replacing the EUR 3 800 441 275 entered in Budget 2012).

This amount is to be financed along the revised 2012 GNI bases of the present DAB 4/2012. The budgeting of this amount in chapter 15 is summarised below:

2011 UK correction — Chapter 15

BE| 198 203 LU| 16 036 164

BG| 19 835 HU| 45 353 733

CZ| 72 448 MT| 3 072 181

DK| 130 929 NL| 54 982 877

DE| 241 497 AT| 27 880 676

EE| 8 192 PL| 181 295 704

IE| 64 772 PT| 83 029 154

EL| 103 136 RO| 71 193 078

ES| 535 142 SI| 17 963 510

FR| 1 073 325 SK| 36 210 428

IT| 814 588 FI| 103 369 355

CY| 8 896 SE| 36 684 944

LV| 10 833 UK| 0

LT| 16 127 Total| 3 975 000 971

32.

2.3.3.2 2010 UK correction (chapter 36)


The amount of the UK correction to be budgeted in chapter 36 of the present DAB 4/2012 is the difference between the 2nd update of the 2010 UK correction (i.e. EUR 3 630 542 087) and the 1st update of the 2010 UK correction (i.e. EUR 3 841 571 660 entered in AB 4/2011), amounting to EUR 211 029 573.

This amount is to be financed along the revised 2011 GNI bases as known at the end of 2011. The budgeting of this amount in chapter 36 is summarised below:

2010 UK correction — Chapter 36

BE| -7 206 LU| -1 321 483

BG| -874 HU| -4 025 268

CZ| -1 231 MT| -289 108

DK| -5 756 NL| -3 588 342

DE| -12 395 AT| -764 191

EE| -159 PL| -15 230 602

IE| -4 114 PT| -4 186 172

EL| -10 261 RO| 1 370 640

ES| -31 026 SI| -1 504 459

FR| -53 804 SK| -2 287 722

IT| -44 693 FI| -4 814 952

CY| -988 SE| -1 637 487

LV| 230 UK| 211 029 573

LT| -468 Total| 0

33.

2.3.3.3 2008 UK correction (chapter 35)


The amount of the UK correction to be budgeted in chapter 35 of the present DAB 4/2012 is the difference between the definitive amount of the 2008 UK correction (i.e. EUR 5 223 574 449) and the 2nd update of the 2008 UK correction (i.e. EUR 5 254 297 904 entered in AB 4/2010), amounting to EUR 30 723 455.

This amount is to be financed along the revised 2009 GNI bases as known at the end of 2011. The budgeting of this amount in chapter 35 is summarised below:

2008 UK correction — Chapter 35

BE| -2 436 LU| -714 690

BG| 1 220 HU| -1 193 752

CZ| 1 690 MT| -66 212

DK| -3 876 NL| -305 503

DE| -4 774 AT| -238 031

EE| 47 PL| -2 645 902

IE| 492 PT| 2 383 572

EL| -4 953 RO| 1 233 079

ES| -5 638 SI| 39 130

FR| -19 594 SK| -868 292

IT| 8 439 FI| 2 996 972

CY| -497 SE| -1 526 708

LV| -254 UK| 30 723 455

LT| 318 Total| 0

34.

2.4 Revision of the financing of the gross reductions in GNI payments of Sweden and the Netherlands in 2012


The gross reductions in the GNI payments of the Netherlands and Sweden for 2012 were established in Budget 2012. The amounts were adjusted to current prices by applying the GDP deflator for the EU expressed in euro, as provided by the Commission in the 2011 Spring Economic Forecast, i.e. which was available when the draft budget 2012 was drawn up. The gross amounts are EUR 678,8 million for the Netherlands and EUR 168,3 million for Sweden and they do not and will not change.[6]

The reductions are to be financed by all Member States according to the shares in GNI. The financing is therefore modified according to the update of the GNI bases for 2012 as agreed during the 154th ACOR Forecast meeting on 21 May 2012.

The following table provides an overview of the financing of the gross reductions for 2012:

35.

Reductions in 2012 GNI payments of the Netherlands and Sweden


BE| 25 260 463 | LU| 2 043 763

BG| 2 527 948 | HU| 5 780 203

CZ| 9 233 356 | MT| 391 541

DK| 16 686 549 | NL| - 638 798 259

DE| 175 802 420 | AT| 20 296 231

EE| 1 044 069 | PL| 23 105 618

IE| 8 255 106 | PT| 10 581 828

EL| 13 144 481 | RO| 9 073 354

ES| 68 202 334 | SI| 2 289 398

FR| 136 792 269 | SK| 4 614 915

IT| 103 816 968 | FI| 13 174 128

CY| 1 133 878 | SE| - 141 598 022

LV| 1 380 677 | UK| 123 709 437

LT| 2 055 347 | Total| 0

36.

3. Risk-Sharing Instruments


37.

3.1 Introduction


Regulation (EU) No 423/2012 of the European Parliament and of the Council of 22 May 2012 amends Council Regulation (EC) No 1083/2006 as regards certain provisions relating to risk-sharing instruments for Member States experiencing or threatened with serious difficulties with respect to their financial stability.

The aim of the new provisions is to address liquidity problems that affect the privately financed part of cohesion policy projects. The new provisions create the possibility to establish, by means of cooperation agreements to be concluded between the Commission and the European Investment Bank (EIB) or similar bodies, risk-sharing instruments with a view to facilitate investment and growth by reallocating financial appropriations up to 10 % of the European Regional Development Fund (ERDF) and Cohesion Fund allocation for the period 2007-2013 to the risk-sharing instruments.

In order to implement the actions, it is proposed to create three new expenditure budget lines and one revenue budget line. The creation of these budget lines has already been proposed in the Draft Budget 2013.

38.

3.2 New Expenditure Budget Lines


In order to implement the actions foreseen, it is proposed to create three new expenditure budget lines in Budget 2012 under Chapter 13 – Regional Policy:

– 13 03 40: Risk-sharing instruments financed from the ERDF Convergence envelope.

– 13 03 41: Risk-sharing instruments financed from the ERDF Regional competitiveness and employment envelope.

– 13 04 03: Risk-sharing instruments financed from the Cohesion Fund envelope.

As the new actions are financed without any overall increase in the appropriations, at this stage a token entry (p.m.) is proposed on these new expenditure budget lines.

Following the entry into force of the corresponding legal act on 23 May 2012[7], the Commission will examine the applications of the concerned Member States. In parallel, the concerned operational programmes will have to be modified.

At the end of this exercise the amounts to be transferred to the risk-sharing instruments will be decommitted from the programmes. The resulting commitment appropriations which become available on the existing respective ERDF and Cohesion Fund budget lines will then be transferred to the newly created budget lines. This will enable the Commission to enter into legal commitments with the EIB or similar bodies (signature of the cooperation agreements).

39.

3.3 New Revenue Budget Line


In order to be able to record potential reflows and amounts left-over from Union support to the Risk Sharing Instruments, it is also proposed to create a new revenue item in Budget 2012 under Article 6 1 4 – Repayment of Union support to commercially successful projects and activities and to Risk Sharing Instruments financed from the European Regional Development Fund and the Cohesion Fund:

– 6 1 4 4 — Repayment of Union support to Risk Sharing Instruments financed from the European Regional Development Fund and the Cohesion Fund — Assigned revenue.

As any potential reflows or amounts left-over cannot be quantified at this stage, a token entry (p.m.) is proposed on this new revenue budget line.

40.

4. Modification of the Budget Line


The preparatory action EuroGlobe was created in 2009. In accordance with article 49 of the Financial Regulation, the relevant commitment appropriations for a preparatory action may be entered in the budget for not more than three successive financial years. However, the finalisation of payments can continue thereafter.

A contract, covering the organisation of a communication campaign and public debates on EU policies and activities of direct relevance to citizens using cinema events, was signed on 28 December 2009. The contract foresaw actions to be carried out during the Hungarian and Polish presidencies in 2011, ending not later than 31 December 2011.

The pre-financing and two interim payments were made in 2010 and 2011. In November 2011, the Commission was informed that the final payment request, together with the final report, would be presented only in 2012. The request for a final payment was received on 12 March 2012.

In order to cover this final payment the Commission will make an internal transfer. However, in accordance with article 25 of the Financial Regulation, a transfer can only be made to a budget line for which there are authorised appropriations, or which carries a token entry (p.m.). In the 2012 budget, the line in question, 16 03 05 01 – Preparatory action – EuroGlobe only foresees a 'dash' in payment appropriations. Therefore, it is proposed to replace this with a token entry (p.m.) to make the required transfer possible.

[1] OJ L 248, 16.9.2002, p. 1.

[2] OJ L 56, 29.2.2012, p. 1.

[3] In accordance with Council Decision No 2007/436, if the VAT base of a Member State exceeds 50 % of its GNI, then it is capped at these 50 %. For DAB 4/2012, four Member States will have their VAT base capped at 50 % of GNI: Cyprus, Luxembourg, Malta and Slovenia.

[4] The amounts highlighted in grey result from the capped VAT bases, as explained in footnote 3 above.

[5] Council Decision n° 2007/436 of 7 June 2007 on the system of the EU own resources, available on: eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2007:163:0017:0021:EN:PDF and Commission working document of 23 May 2007 "Calculation, financing, payment and entry in the budget of the correction of budgetary imbalances in accordance with Articles 4 and 5 of Council Decision [2007/436] on the system of the EU own resources” referred as the 2007 Calculation Method and available on:

ec.europa.eu/budget/library/biblio/documents

[6] According to Article 2(5) of Council Decision 2007/436/EC, Euratom the amounts are adjusted to the current prices by applying the most recent GDP deflator for the EU expressed in euro, as provided by the Commission, which is available when the preliminary draft budget is drawn up.

[7] OJ L 133, 23.5.2012, p.1.