Explanatory Memorandum to COM(2020)170 - Amending budget N° 2 Providing emergency support to MS and further reinforcement of the Union Civil Protection Mechanism/rescEU to respond to COVID-19 outbreak

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dossier COM(2020)170 - Amending budget N° 2 Providing emergency support to MS and further reinforcement of the Union Civil Protection ...
source COM(2020)170 EN
date 02-04-2020
1. Introduction

The purpose of Draft Amending Budget (DAB) No 2 for the year 2020 is to provide EUR 3 000,0 million in commitment appropriations and EUR 1 530,0 million in payment appropriations under heading 3 Security and Citizenship to finance the provision of emergency support within the Union through the Emergency Support Instrument, which is proposed to be re-activated to help tackle the consequences of the COVID-19 outbreak and to further reinforce the Union Civil Protection Mechanism/rescEU to allow wider stock-piling and coordination of essential resource distribution across Europe 4 .

Contents

1.

2. Providing emergency support to Member States through the re-activation of the Emergency Support Instrument within the Union


2.

2.1. Context


Given the depth of the crisis following the COVID-19 outbreak as well as the extent and nature of the needs requiring support from the EU budget in the immediate future, the Commission proposes in parallel to this DAB that the Council reactivates and amends Council Regulation 2016/369 on the provision of emergency support within the Union 5 to equip the EU with a broader toolbox commensurate to the large scale of the current COVID-19 pandemic.

The Emergency Support Instrument (ESI) was created in March 2016 and was activated for a period of 3 years to address the emergency situation which had arisen following the massive influx of refugees in Greece. It was designed as a general purpose tool to fight crises within the EU and intervenes only in exceptional circumstances of severe difficulties. It can be mobilised to address any crisis requiring humanitarian aid and covers a broad scope of eligible actions: “Emergency support … may include any of the humanitarian aid actions and may consequently encompass assistance, relief and, where necessary, protection operations to save and preserve life in disasters or in their immediate aftermath” 6 .

The measures foreseen under the Union Civil Protection Mechanism (rescEU), the Civil Protection Mechanism, the Coronavirus Response Investment Initiative to deploy European Structural and Investment Funds and other Union instruments are contributing to partly address the public health emergency; however, the scale and scope of the challenge requires to address effectively the public health related humanitarian consequences of the outbreak within the Union. Emergency support provided under the ESI promotes complementarity to and consistency with actions of the affected Member States, as well as synergies with actions financed at EU level under other funds and instruments.

In view of the above, support under the Emergency Support Regulation (No 2016/369) is proposed to be activated and provided with the necessary appropriations as soon as possible. This will allow the Union to deploy measures preventing and mitigating severe consequences in one or more Member States and to address in a coordinated manner the needs related to the COVID-19 disaster, by complementing any assistance provided under other EU instruments.

3.

2.2. Actions to be financed through the ESI


Given the urgency of the situation and the serious nature of the COVID-19 outbreak related public health crisis in all Member States, the Commission proposes to provide EUR 2 700,0 million in commitment appropriations and EUR 1 380,0 million in payment appropriations to the ESI.

Support may be used to finance inter alia the following actions:

–wider and faster stock-piling and coordination of essential resource distribution across Europe;

–meeting the transport needs for protective gear to be imported from international partners as well as transport across the EU;

–transportation of patients in need to cross-border hospitals which can offer free capacity;

–cross-border cooperation to alleviate the pressure on health systems in the most affected EU regions;

–central procurement and distribution of essential medical supplies to hospitals and emergency supply of protective gear for hospital staff, such as respirators, ventilators, personal protective equipment, reusable masks, medicines, therapeutics and laboratory supplies and disinfectants;

–increasing and converting production capacities of EU enterprises to ensure rapid production and deployment of equipment and material needed to urgently address supplies shortages of essential products and medicines;

–increasing care facilities and resources, including temporary and semi-permanent field hospitals and support for reconverted facilities;

–increasing the production of testing kits and support for acquiring key basic substances;

–boosting the swift development of medication and testing methods;

–developing, purchasing and distributing testing supplies (testing kits, reagents, hardware).

The Commission will ensure full coordination so that actions financed under the ESI complement other existing instruments such as rescEU or the Asylum, Migration and Integration Fund (AMIF) in certain areas (for instance in reception facilities for migrants). The deployment will be adapted to the development of the outbreak and coordinated with measures undertaken by Member States to maximise impact.

EUR
Budget lineNameCommitment appropriationsPayment appropriations
Section III – Commission
18 01 04 05Support expenditure for emergency support within the Union54 000 00054 000 000
18 07 01Emergency support within the Union2 646 000 0001 326 000 000
Total 2 700 000 0001 380 000 000


4.

3. Further reinforcement of the Union Civil Protection Mechanism (within the Union)


As part of the EU’s response to the COVID-19 outbreak, UCPM facilitates cooperation between Member States. In addition to the joint procurement and as a further safety net, the Commission has adopted a new Implementing Act under UPCM/rescEU in order to support Member States in purchasing some of the needed equipment (including therapeutics, medical equipment, Personal Protective Equipment, laboratory supplies), thus increasing the volume, complimenting and widening the scope of priority items purchased through the joint procurement. The rescEU direct grant will provide 100 % financing from the EU budget, which includes full financing for development of the these capacities and full financing of deployment. The equipment purchased will be hosted by one or more Member States, while decision-making is organised at EU level, providing emergency supplies over and beyond the national stocks. It will be available to all Member States and will be used in case of insufficient national capacity.

As announced with the Draft Amending Budget No 1/2020 7 , the Commission redeployed EUR 10,0 million in commitment appropriations to support COVID-19 medical countermeasures and equipment from within the existing UCPM/rescEU budget for 2020 (prevention and preparedness within the Union) and proposed a reinforcement of EUR 70,0 million in commitment and EUR 40,0 million in payment appropriations.

In view of the rapid development of the crisis and the associated needs in the Member States, the scale of our stock-piling efforts needs to be further reinforced. rescEU can contribute to wider stock-piling, coordination and distribution of essential medical supplies in high demand to hospitals, including protective gear for hospital staff (masks, goggles, overalls, nano-materials for medical use, disinfectants), ventilators (both invasive and non-invasive ventilators) needed for an effective response. Stocks are to be used to dispatch at short notice necessary medical equipment successively to those MS and regions experiencing outbreaks and epidemic peaks in infections, making an efficient and effective use of reusable equipment where it is most needed.

A further reinforcement of EUR 300,0 million in commitment and EUR 150,0 million in payment appropriations are therefore proposed.

The reinforced rescEU and the re-activated ESI will be complementary and will ensure the most efficient provision of the needed medical equipment.

EUR
Budget lineNameCommitment appropriationsPayment appropriations
Section III – Commission
23 03 01 01Disaster prevention and preparedness within the Union300 000 000150 000 000
Total 300 000 000150 000 000

5.

4. Financing


Given the absence of margins and room for redeployment under heading 3 of the multiannual financial framework (MFF), the Commission proposes to mobilise the following special instruments for the total amount of EUR 3 000,0 million:

·The remaining Global Margin for Commitments for an amount of EUR 2 042,4 million 8 . An amendment of the MFF Regulation removing the limitations in the scope of this instrument is proposed in parallel to this Amending budget 9 ;

·The Flexibility Instrument for an amount of EUR 243,0 million 10 ; and

·The Contingency Margin for the balance (EUR 714,6 million) with a corresponding offset against the margin available in 2020 under heading 5 Administration 11 .

6.

5. Summary table by MFF heading


In EUR
HeadingBudget 2020Draft Amending Budget 2/2020Budget 2020
(incl. DAB 1/2020)(incl. DAB 1-2/2020)
CAPACAPACAPA
1.Smart and inclusive growth83 930 597 83772 353 828 44283 930 597 83772 353 828 442
Ceiling83 661 000 00083 661 000 000
Margin
1aCompetitiveness for growth and jobs25 284 773 98222 308 071 59225 284 773 98222 308 071 592
Of which under global margin for commitments93 773 98293 773 982
Ceiling25 191 000 00025 191 000 000
Margin
1bEconomic social and territorial cohesion58 645 823 85550 045 756 85058 645 823 85550 045 756 850
Of which under global margin for commitments175 823 855175 823 855
Ceiling58 470 000 00058 470 000 000
Margin
2.Sustainable growth: natural resources59 907 021 05157 904 492 43959 907 021 05157 904 492 439
Ceiling60 421 000 00060 421 000 000
Margin513 978 949513 978 949
Of which: European Agricultural Guarantee Fund (EAGF) — Market related expenditure and direct payments43 410 105 68743 380 031 79843 410 105 68743 380 031 798
Sub-ceiling43 888 000 00043 888 000 000
Rounding difference excluded from margin calculation888 000888 000
EAGF Margin477 006 313477 006 313
3.Security and citizenship4 152 374 4893 748 527 1413 000 000 0001 530 000 0007 152 374 4895 278 527 141
Of which under Flexibility Instrument851 374 489243 039 6991 094 414 188
Of which under global margin for commitments350 000 0002 042 402 1632 392 402 163
Of which under Contingency margin714 558 138714 558 138
Ceiling2 951 000 0002 951 000 000
Margin
4.Global Europe10 406 572 2398 944 061 19110 406 572 2398 944 061 191
Ceiling10 510 000 00010 510 000 000
Margin103 427 761103 427 761
5.Administration10 271 193 49410 274 196 70410 271 193 49410 274 196 704
Ceiling11 254 000 00011 254 000 000
Of which offset against Contingency margin- 252 000 000
- 714 558 138
- 966 558 138
Margin730 806 50616 248 368
Of which: Administrative expenditure of the institutions7 955 303 1327 958 306 3427 955 303 1327 958 306 342
Sub-ceiling9 071 000 0009 071 000 000
Of which offset against Contingency margin- 252 000 000
- 714 558 138
- 966 558 138
Margin863 696 868149 138 730
Total168 667 759 110153 225 105 9173 000 000 0001 530 000 000171 667 759 110154 755 105 917
Of which under Flexibility Instrument851 374 489893 079 197243 039 699123 950 2471 094 414 1881 017 029 444
Of which under global margin for commitments619 597 8372 042 402 1632 662 000 000
Of which under Contingency margin714 558 138714 558 138
Ceiling168 797 000 000172 420 000 000168 797 000 000172 420 000 000
Of which offset against Contingency margin- 252 000 000
- 714 558 138
- 966 558 138
Margin1 348 213 21620 087 973 280633 655 07818 681 923 527
Other special Instruments587 763 000418 500 000587 763 000418 500 000
Grand Total169 255 522 110153 643 605 9173 000 000 0001 530 000 000172 255 522 110155 173 605 917


(1) OJ L 193, 30.7.2018.
(2) OJ L 57, 27.2.2020.
(3) COM(2020) 145, 27.3.2020.
(4) On top of the reinforcement (EUR 80,0 million, out of which EUR 10,0 million by redeployment within the Union Civil Protection Mechanism) included in DAB No 1/2020 (COM(2020) 145, 27.3.2020).
(5) COM(2020) 175, 2.4.2020.
(6) Council Regulation 2016/369 Art 3(2)
(7) COM(2020) 145 final, 27.3.2020.
(8) This amount takes into the remaining margin from 2019 (EUR 1 316,9 million) made available for 2020 in the “Technical adjustment in respect of special instrument” COM(2020) 173, 2.4.2020.
(9) COM(2020) 174, 2.4.2020. This amendment of Regulation No 1311/2013 should enter into force at the latest on the same day as the final adoption of this DAB.
(10) COM(2020) 171, 2.4.2020.
(11) COM(2020) 172, 2.4.2020.