Explanatory Memorandum to COM(2017)288 - Budget amendment increasing the budgetary resources of the Youth Employment Initiative (YEI) and updating the staff establishment plans of ACER and SESAR2

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dossier COM(2017)288 - Budget amendment increasing the budgetary resources of the Youth Employment Initiative (YEI) and updating the staff ...
source COM(2017)288 EN
date 30-05-2017
EUROPEAN COMMISSION

Contents

1.

Brussels, 30.5.2017 COM(2017) 288 final


DRAFT AMENDING BUDGET No 3 TO THE GENERAL BUDGET 2017

Increasing the budgetary resources of the Youth Employment Initiative (YEI) to pursue

the reduction of youth unemployment across the European Union and updating the staff

establishment plans of the decentralised agency ACER and the joint undertaking

SESAR2

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) No 966/2012 of the European Parliament and of the

Council of 25 October 2012 on the financial rules applicable to the general budget of the Union1, and in particular Article 41 thereof,

– the general budget of the European Union for the financial year 2017, as adopted on

1 December 20162,

– the amending budget No 1/20173, adopted on 5 April 2017,

– the draft amending budget No 2/20174, adopted on 12 April 2017,

The European Commission hereby presents draft amending budget No 3 to the 2017 budget to the European Parliament and to the Council.

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.

OJ L 298, 26.10.2012, p. 1. OJ L 51, 28.2.2017. OJ L XXX, XX.XX.XXX. COM(2017) 188 final.

TABLE OF CONTENTS

1. INTRODUCTION ................................................................................................................................... 4

2. REINFORCEMENT OF THE YOUTH EMPLOYMENT INITIATIVE (YEI)


2.1 Context of the reinforcement ........................................................................................................ 4

2.2 Financing ............................................................................................................................................... 5

3. UPDATE OF THE STAFF ESTABLISHMENT PLANS OF THE DECENTRALISED AGENCY ACER AND THE JOINT UNDERTAKING SESAR2 ...................................................................................... 5

3.1 Agency for the Cooperation of Energy Regulators (ACER) ................................................. 5

3.2 Single European Sky Air Traffic Management Research (SESAR2) ...................................... 5

4. SUMMARY TABLE BY MFF HEADING ........................................................................................... 6

1. Introduction

The purpose of Draft Amending Budget (DAB) No 3 for the year 2017 is twofold:

- The provision of EUR 500 million of additional commitment appropriations to the Youth Employment Initiative (YEI) as agreed by the European Parliament and the Council in their agreement on the budget 2017. No reinforcement in payment appropriations is proposed.

- An amendment of the establishment plans of the decentralised agency ACER and the joint undertaking SESAR2, without incurring any changes to the overall budget or the total number of posts.

2. Reinforcement of the Youth Employment Initiative (YEI)

2.1 Context of

the reinforcement

The creation of the Youth Employment Initiative (YEI) was agreed in 2013 as a response to the exceptionally high youth unemployment levels across the EU with a dedicated allocation of EUR 3,2 billion5 in current prices to provide direct targeted support to young people not in employment, education, or training residing in regions with youth unemployment rates higher than 25% in 2012. In order to speed up implementation, the full allocation in terms of commitments under the 2014-20 period was frontloaded to 2014 and 2015.

Despite initial delays, the structures for implementing the YEI are now in place. First evaluations6 point to significantly improved opportunities for young people who received support from the initiative in finding employment or continuing their studies afterwards.

Youth unemployment rates have decreased in most Member States in comparison to the reference year of 2012 but they are still above 2008 (pre financial crisis) levels. This situation calls for continued efforts and support at EU level which is why the European Parliament and the Council in their agreement on the budget 20177 invited "the Commission to propose an amending budget in 2017 in order to provide EUR 500 million for the YEI in 2017 financed by the Global Margin for Commitments, as soon as the technical adjustment foreseen in article 6 of the MFF Regulation8 is adopted."

The technical adjustement having now been adopted9, the Commission proposes to amend the budget 2017 to reflect the above-mentioned agreement of the European Parliament and Council.

Matched by EUR 3,2 billion from the European Social Fund.

2.

Communication from the Commission to the European Parliament, the European Council, the Council, the


European economic and social committee and the Committee of the Regions "The Youth Guarantee and

Youth Employment Initiative three years on" COM(2016) 646 final, 8.10.2016.

3.

European Parliament legislative resolution of 1 December 2016 on the joint text on the draft general budget


of the European Union for the financial year 2017 approved by the Conciliation Committee under the

budgetary procedure (14635/2016 – C8-0470/2016 – 2016/2047(BUD)).

4.

Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial


framework for the years 2014-2020.

COM(2017) 220 final, 24.5.2017.

8

9

2.2 Financing

In line with Article 14 of the MFF Regulation, the reinforcement in commitment appropriations of the YEI will be financed from the Global Margin for Commitments (GMC).

The Commission considers that this reinforcement will not translate into additional payment needs in 2017. Before any payments on the reinforcement can be made, all relevant operational programmes have to be amended. This process is expected to be completed in the second half of 2017, which is after the legal deadline for paying the 2017 annual pre-financing as stipulated in the Common Provisions Regulation (EU) No 1303/201310. Furthermore, it is not expected that the additional commitments will translate into interim payment claims being submitted in 2017.

3. Update of the staff establishment plans of the decentralised agency ACER

and the Joint Undertaking SESAR2

3.1 Agency for the Cooperation of Energy Regulators (ACER)

Taking into account the rules on the establishment plans for staff set out in Article 50 of the Financial Regulation11, it is proposed to amend the 2017 establishment plan of the Agency for the Cooperation of Energy Regulators (ACER), while the total number of posts will remain unchanged. This amendment is necessary to fulfil the requirements for the 2017 reclassification exercise in ACER, where a misalignment has occurred between the establishment plan and the necessary grades. This can be financed within ACER's budget for this year. Consequently, a reinforcement of the EU contribution to the agency is not required.

5.

The updated


establishment plan is set out in the budgetary annex.

3.2 Single European Sky Air Traffic Management Research (SESAR2)

The Single European Sky Air Traffic Management (ATM) Research Joint Undertaking (SESAR2) is the Union’s ATM modernisation project and a key component of the Single European Sky policy and of the Aviation Strategy for Europe. The proposed amendment of the 2017 establishment plan of SESAR2 is necessary in order to allow for the reclassification of its Executive Director (from AD14 to AD15) upon mandate renewal (1 April 2017) following the favourable evaluation by the Administrative Board of the Joint Undertaking and the Commission. Moreover, a misalignment has occurred between the establishment plan of SESAR2 and the grades.

The overall budget and the total number of posts remains unchanged. The reclassification of the AD15 post is ad personam and will expire at the end of the mandate of the current Executive Director.

6.

The updated


establishment plan is set out in the budgetary annex.

OJ L 347, 20.12.2013, p.320. In accordance with Article 134 (2), annual pre-financing shall be paid before July of the corresponding year. OJ L 362, 31.12.2012.

10

1


4.

Summary table by MFF heading

HeadingBudget 2017Budget 2017
(incl. AB 1 & DAB 2/2017)Draft Amending Budget 3/2017(incl. AB 1, DAB 2&3/2017)
CAPACAPACAPA
1. Smart and inclusive growth
74 898 754 45656 521 763 545500 000 00075 398 754 45656 521 763 545
Of which under global margin for commitments1 439 100 000500 000 0001 939 100 000
Ceiling73 512 000 00073 512 000 000
Margin52 345 54452 345 544
1a Competitiveness for growth and jobs21 312 155 82119 320 944 50321 312 155 82119 320 944 503
Of which under global margin for commitments1 439 100 0001 439 100 000
Ceiling19 925 000 00019 925 000 000
Margin51 944 17951 944 179
1b Economic social and territorial cohesion53 586 598 63537 200 819 042500 000 00054 086 598 63537 200 819 042
Of which under global margin for commitments500 000 000500 000 000
Ceiling53 587 000 00053 587 000 000
Margin401 365401 365
2. Sustainable growth: natural resources
58 584 443 88454 913 969 53758 584 443 88454 913 969 537
Ceiling60 191 000 00060 191 000 000
Of which offset against Contingency margin- 575 000 000
- 575 000 000
Margin1 031 556 1161 031 556 116
Of which: European Agricultural Guarantee Fund (EAGF) — Market related expenditure and direct payments42 612 572 07942 562 967 97442 612 572 07942 562 967 974
Sub-ceiling44 146 000 00044 146 000 000
Net transfer between EAGF and EAFRD318 000318 000
EAGF Margin1 533 109 9211 533 109 921
3. Security and citizenship
4 284 030 9603 786 957 2874 284 030 9603 786 957 287
Of which under Flexibility Instrument530 000 000530 000 000
Of which under Contingency margin1 176 030 9601 176 030 960
Ceiling2 578 000 0002 578 000 000
Margin
4. Global Europe
10 162 120 0009 483 081 17810 162 120 0009 483 081 178
Of which under Contingency margin730 120 000730 120 000
Ceiling9 432 000 0009 432 000 000
Margin
5. Administration
9 394 513 8169 394 599 8169 394 513 8169 394 599 816
Ceiling9 918 000 0009 918 000 000
Of which offset against Contingency margin- 507 268 804
- 507 268 804
Margin16 217 38016 217 380
Of which: Administrative expenditure of the institutions7 418 902 6607 418 988 6607 418 902 6607 418 988 660
Sub-ceiling8 007 000 0008 007 000 000
Of which offset against Contingency margin- 507 268 804
- 507 268 804
Margin80 828 53680 828 536
Negative reserve- 70 402 434
- 70 402 434
Total157 323 863 116134 029 968 929500 000 000157 823 863 116134 029 968 929
Of which under Flexibility Instrument530 000 000981 093 985530 000 000981 093 985
Of which under global margin for commitments1 439 100 000500 000 0001 939 100 000
Of which under Contingency margin1 906 150 9601 906 150 960
Ceiling155 631 000 000142 906 000 000155 631 000 000142 906 000 000
Of which offset against Contingency margin-1 082 268 804-1 082 268 804
Margin1 100 119 0409 857 125 0561 100 11 9 0409 857 125 056
Other special Instruments604 326 434460 402 434604 326 434460 402 434
Grand Total157 928 189 550134 490 371 363500 000 000158 428 189 550134 490 371 363