Explanatory Memorandum to COM(2017)541 - Amending budget N° 4 to the budget 2017 accompanying the proposal: to mobilise the EU Solidarity Fund to provide assistance to Italy

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dossier COM(2017)541 - Amending budget N° 4 to the budget 2017 accompanying the proposal: to mobilise the EU Solidarity Fund to provide assistance ...
source COM(2017)541 EN
date 26-06-2017
EUROPEAN COMMISSION

Contents

1.

Brussels, 26.6.2017 COM(2017) 541 final


DRAFT AMENDING BUDGET No 4 TO THE GENERAL BUDGET 2017

Accompanying the proposal to mobilise the European Union Solidarity Fund to provide

assistance to Italy

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 draft amending budget No 3/20175, adopted on 30 May 2017,

The European Commission hereby presents draft amending budget No 4 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 136, 24.5.2017. COM(2017) 188, 12.4.2017. COM(2017) 288, 30.5.2017.

TABLE OF CONTENTS

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

2. FINANCING FROM THE EUSF ALLOCATIONS 2016, 2017 AND 2018 ...................................... 4

3. APPROPRIATIONS REQUESTED IN THE BUDGET OF 2017 ..................................................... 4

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

1. Introduction

Draft Amending Budget (DAB) No 4 for the year 2017 accompanies the proposal to mobilise the European Union Solidarity Fund (EUSF) for an amount of EUR 1 196 797 579 to provide assistance to Italy further to a series of earthquakes that took place between August 2016 and January 2017 in the regions of Abruzzo, Lazio, Marche and Umbria6.

DAB No 4/2017 proposes to enter in the general budget 2017 EUR 1 166 797 579 in commitment and payment appropriations to cover the budgetary needs of this mobilisation, after having deducted the advance already paid in 2016 (EUR 30 000 000).

2. Financing from the EUSF allocations 2016, 2017 and 2018

The total amount available for the mobilisation of the EUSF at the beginning of 2017 was EUR 1 115 121 612, being the sum of the 2017 allocation of EUR 563 081 210 (i.e. EUR 500 000 000 in 2011 prices) in accordance with Article 10(1) of the Multiannual Financial Framework (MFF) regulation7 (hereafter 'the MFF regulation'), plus the entire 2016 allocation of EUR 552 040 402 (i.e. EUR 500 000 000 in 2011 prices) that remained unspent and was carried over to the following year, in accordance with Article 10(2) of the MFF regulation.

The amount that may be mobilised at this stage of the year 2017 is EUR 902 826 499. This corresponds to the total amount available for the mobilisation of the EUSF at the beginning of 2017 (EUR 1 115 121 612), minus the previous mobilisation8 (EUR 71 524 810), minus the retained amount of EUR 140 770 303 in order to respect the obligation of keeping aside 25% of the 2017 annual allocation until 1 October 2017 as stipulated by Article 10(1) of the MFF regulation.

This amount is not sufficient to cover the full mobilisation of the EUSF for Italy. However, the Commission considers that the conditions under Article 10(2) of the MFF regulation are fulfiled and proposes to cover the difference of EUR 293 971 080 (EUR 1 196 797 579 minus EUR 902 826 499 under 2017 budget allocation) from the annual amount available in 2018.

3. Appropriations requested in the budget of 2017

Considering the amount of EUR 30 000 000 that was already paid for this EUSF case as advance from the budget 2016, the Commission proposes to amend the budget 2017 by increasing budget article 13 06 01 'Assistance to Member States in the event of a major natural disaster with serious repercussions on living conditions, the natural environment or the economy' by EUR 1 166 797 579 both in commitment and payment appropriations.

Given the level of interim payments received before the closure, the Commission proposes to fully redeploy the necessary payment appropriations for this EUSF case within the budget 2017 and to replenish the negative reserve activated in the Amending Budget No 1/2017 (EUR 70 402 434) from the budget lines for some 2007-2013 structural funds programmes.

COM(2017) 540, 26.6.2017.

2.

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


financial framework for the years 2014-2020 (OJ L 347, 20.12.2013, p. 884).

3.

Decision (EU) 2017/741 of the European Parliament and of the Council of 5 April 2017 on the mobilisation



8

The budget lines proposed to be amended in the context of this EUSF cases are listed below:

Amounts in EUR

Budget lineNameCommitment appropriationsPayment appropriations
13 03 16Completion of European Regional Development Fund (ERDF) — Convergence-915 477 000
13 03 18Completion of European Regional Development Fund (ERDF) — Regional competitiveness and employment0-23 165 000
13 03 19Completion of European Regional Development Fund (ERDF) — European territorial cooperation0-42 508 000
13 04 02Completion of Cohesion Fund (2007 to 2013)0-256 050 013
13 06 01Assistance to Member States in the event of a major natural disaster with serious repercussions on living conditions, the natural environment or the economy1 166 797 5791 166 797 579
40 03 01Negative reserve070 402 434
Total1 166 797 5790

4.

Summary table by MFF heading

HeadingBudget 2017Budget 2017
(incl. AB 1, DAB 2&3/2017)Draft Amending Budget 4/2017(incl. AB 1 & DAB 2-4/2017)
CAPACAPACAPA
1. Smart and inclusive growth
75 398 754 45656 521 763 545-1 237 200 01375 398 754 45655 284 563 532
Of which under global margin for commitments1 939 100 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 cohesion54 086 598 63537 200 819 042-1 237 200 01354 086 598 63535 963 619 029
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 823 863 116134 029 968 929-1 166 797 579157 823 863 116132 863 171 350
Of which under Flexibility Instrument530 000 000981 093 985530 000 000981 093 985
Of which under global margin for commitments1 939 100 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 100 119 04011 023 922 635
Other special Instruments604 326 434460 402 4341 166 797 5791 166 797 5791 771 124 0131 627 200 013
Grand Total158 428 189 550134 490 371 3631 166 797 579159 594 987 129134 490 371 363