Explanatory Memorandum to COM(2016)604 - Amendment of Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020 - Main contents
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| dossier | COM(2016)604 - Amendment of Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020. |
|---|---|
| source | COM(2016)604  |
| date | 14-09-2016 |
1. CONTEXT OF THE PROPOSAL
In the first years of the multiannual financial framework (MFF) for the years 2014-2020, the Union has been confronted with unforeseen challenges of an unprecedented scale resulting from instability in its neighbourhood occasioning security threats and mass migratory movements.
In its Communication on the "Mid-Term Review/Revision of the Multiannual Financial Framework 2014-2020 – An EU Budget Focused on Results" 1 the Commission has assessed the functioning and use made of special instruments in the first two to three years of implementation of the MFF.
In order to mobilise additional financial means for measures contributing to tackle the above mentioned challenges, wide use has been made of all budgetary availabilities, including redeployments, margins and special instruments, and new instruments such as European Union Trust Funds and the Facility for Refugees in Turkey were set up to draw additional funding whilst respecting the constraints set by the MFF. Compared with the previous period the special instruments laid down in Regulation No 1311/2013 2 ("MFF Regulation") have considerably increased the flexibility of the MFF, allowing the Union to take decisive action. However, as these challenges persist, the Union's continued capacity to react swiftly in emergency situations is at stake.
Against this background, the European Parliament called for bold steps to enhance the Union budget's flexibility 3 , whilst informal Council discussions also pointed at the need to enhance the ability of the current MFF to respond to unforeseen events 4 .
2. LEGAL BASIS AND CONTENT OF THE PROPOSAL
The present proposal is based on Article 2 of the MFF Regulation which provides that the mid-term review of the MFF shall, as appropriate, be accompanied by a legislative proposal for the revision of this Regulation. Such a revision shall not reduce the pre-allocated national envelopes, without prejudice to the adjustment of the cohesion policy envelopes made in accordance with Article 7 of the MFF Regulation 5 .
Taking into account the use made of special instruments since the beginning of the MFF period and the new challenges the Union has been and continues to be confronted with, the Commission proposes to amend the MFF Regulation in order to increase the annual maximum amounts set for the Emergency Aid Reserve (Article 9) and the Flexibility Instrument (Article 11) and to introduce a new special instrument for setting up a European Union Crisis Reserve financed from de-committed appropriations to allow the Union to react rapidly to crises, such as the current migration crisis, as well as to events with serious humanitarian or security implications. In parallel with the present proposal, the Commission proposes to amend the Interinstitutional Agreement on cooperation in budgetary matters and on sound financial management 6 in order to provide for the mobilisation procedure of the new Crisis Reserve.
Furthermore, it is proposed to remove the limitations in time and scope of the Global margin for commitments (Article 14).
Concerning the Global margin for payments, it is proposed to remove the annual caps set for 2018-2020 (Article 5.2) to allow for the full mobilisation, in the later years of the MFF, of the large margins in payments left unused in 2016 and 2017 should it prove necessary, and therefore ensure specific and maximum flexibility.
3. BUDGETARY IMPLICATIONS
The present proposal has no immediate budgetary implications. Special instruments are mobilised and appropriations entered in the annual budget subject to the procedures laid down in the MFF Regulation, the relevant basic acts (see Article 3, paragraph 2 of that Regulation) and the Interinstitutional Agreement on budgetary discipline, on cooperation in budgetary matters and on sound financial management.