Explanatory Memorandum to COM(2020)174 - 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(2020)174 - Amendment of Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020. |
|---|---|
| source | COM(2020)174  |
| date | 02-04-2020 |
1. CONTEXT OF THE PROPOSAL
The COVID-19 outbreak has affected the society and economy in the European Union in a dramatic way requiring the Member States to adopt exceptional measures. The outbreak represents a severe public health emergency for citizens, societies and economies. Economic activities are disrupted causing liquidity constraints and a severe deterioration in the financial situation of economic actors (enterprises, and in particular SMEs). Member States are also facing increased demands on state resources to finance the public health systems and maintain public services.
To help Member States meet all these challenges and respond to the impact of the outbreak, the Commission proposed a wide range of measures in the Covid-19 Response Investment Initiative 1 , including the deployment of European Structural and Investment Funds 2 . A reinforcement of the European Union Civil Protection Mechanism/rescEU was proposed, to coordinate joint procurement and increase the stock of medicines, personal protective equipment and medical products, to repatriate European citizens stranded outside the EU 3 . A reinforcement of the European Centre for Disease Prevention and Control (ECDC) was also proposed.
In order to provide an adequate response to the needs resulting from the COVID-19 outbreak, the Commission now proposes to activate, with a budget of EUR 2,7 billion, the Emergency Support Instrument, created in 2016 on the peak of the refugee crisis, to provide assistance with the Covid-19 outbreak 4 to the Member States. In view of the rapid development of the crisis, the Commission also proposes to further reinforce the Union Civil Protection Mechanism/rescEU with an additional budget of EUR 300 million so as to facilitate wider stock-piling and coordination of essential resource distribution across Europe 5 .
This requires the mobilisation of special instruments as there are no available margins or scope for redeployment in heading 3 of the multiannual financial framework (MFF). The availability of special instruments for 2020 is presented in the technical adjustment of the MFF for 2020 6 .
Based on the current definition and scope of the special instruments in the MFF Regulation, only the Flexibility Instrument and the Contingency Margin can be used for this purpose, given that the use of the Global Margin for Commitments is restricted to youth and employment as well as migration and security. The current combined availabilities under the Flexibility Instrument and the Contingency Margin are not sufficient to cover the financing needs of the Emergency Support Instrument and of the significant reinforcement of the Union Civil Protection Mechanism/rescEU.
Given that this is the last year of the 2014-2020 MFF and the European Union is facing an unprecedented health and economic crisis, the Commission proposes to amend the MFF Regulation in order to remove the limitations in the scope of the Global Margin for Commitments (Article 14) so as to allow the full financing of the EUR 3,0 billion for the Covid-19 outbreak response proposed in draft amending budget No 2/2020 presented separately.
The Commission proposes to delete the references to “youth and employment”, and “for migration and security measures” from the wording of the relevant Articles.
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 7 provides that amendments to Council Regulation (EU, Euratom) No 1311/2013 that are adopted on or after the date of entry into force of that Agreement shall not apply to the United Kingdom insofar as those amendments have an impact on the United Kingdom's financial obligations. Amendments provided in this Regulation are limited to the change of the purpose of the use of the Global margin for commitments and do not increase financial obligations. Therefore, 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 does not apply to this amendment.
2. BUDGETARY IMPLICATIONS
The present proposal has no immediate budgetary implications. The Global Margin for Commitments is mobilised and appropriations entered in the annual budget subject to the procedures laid down in the MFF Regulation and the Interinstitutional Agreement on budgetary discipline, on cooperation in budgetary matters and on sound financial management.