Explanatory Memorandum to COM(2023)406 - Amending budget N° 3 to the budget 2023 Update of revenue (own resources) and other technical adjustments including the set-up and financing for 2023 of the new Defence Industrial Reinforcement Instrument and of the European Chips Act

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dossier COM(2023)406 - Amending budget N° 3 to the budget 2023 Update of revenue (own resources) and other technical adjustments including the ...
source COM(2023)406 EN
date 03-07-2023


1. Introduction

The main purpose of Draft Amending Budget (DAB) No 3 for the year 2023 is to update the revenue side of the budget to take account of the latest developments as regards:

–the updated own resources forecasts for the 2023 budget agreed by the Advisory Committee on Own Resources (ACOR) on 25 May 2023. This update is typically presented shortly after the ACOR forecast meeting, in line with the Member States’ expectations that the ACOR updates are budgeted as soon as possible;

–to update other revenues such as the United Kingdom contribution, fines and other.

Additionally, DAB 3/2023 includes the following specific elements related to expenditure:

–adjustments with respect to the set-up and financing for 2023 of the new Defence Industrial Reinforcement Instrument established by the Act in Support of Ammunition Production (ASAP);

–adjustments with respect to the financing of the European Chips Act 6 for 2023 following the political agreement reached between the European Parliament and the Council on 18 April 2023;

–cancellation of appropriations from the reserve line for the Sustainable Fisheries Partnership Agreements (SFPA), due to delays in the negotiations with three third countries (namely Morocco, Liberia and Solomon Islands);

–reinforcement of the budget of the European Data Protection Supervisor (EDPS) to cover additional costs in relation to the rent to be paid to the European Parliament.

Overall, the net impact of DAB 3/2023 on expenditure amounts to an increase of EUR 54,8 million in commitment appropriations and a decrease of EUR 190,9 million in payment appropriations.

Contents

1.

2. Update of revenue


2.

2.1 Overall impact of DAB 3/2023 on the distribution of total own resources payments between Member States


The revised forecasts for 2023 were agreed in the 188th ACOR meeting on 25 May 2023. The adjustments of the revenue side of the budget are required to update the estimates for Traditional Own Resources (TOR) as well as for the own resources based on the Value Added Tax (VAT), the non-recycled Plastic Packaging Waste (PPW) and Gross National Income (GNI), taking into account the Spring economic forecasts (see section 2.2).

Moreover, the amount of other revenues is updated to take into account the revised United Kingdom contribution and definitely cashed fines and penalty payments until June 2023 (see sections 2.3 and 2.4, respectively).

The overall impact of the revenue adjustments of this DAB is shown in the summary table below. This table also shows the distribution of total own resources payments between Member States as budgeted in the initial 2023 budget, as included in DAB 2/2023 7 , and finally as included in this DAB 3/2023.

3.

Distribution of total own resources payments by Member States (in million EUR)


Budget 2023DAB 2/2023DAB 3/2023
(1)(2)(3)
BE6 894,76 807,66 808,1
BG858,5846,2944,6
CZ2 789,82 746,82 864,0
DK3 251,73 193,33 172,5
DE36 585,235 946,934 945,9
EE371,8366,5393,2
IE3 625,33 568,13 690,0
EL2 034,32 002,02 122,8
ES13 901,113 687,413 991,3
FR27 185,126 753,626 567,0
HR615,9606,1670,8
IT19 932,219 624,819 515,2
CY250,2246,3259,5
LV399,0393,2420,6
LT666,0656,5746,0
LU552,6543,3470,2
HU1 850,41 824,61 932,7
MT159,0156,6166,4
NL9 312,69 163,59 721,1
AT3 629,63 559,33 617,8
PL7 624,37 520,67 552,2
PT2 425,42 388,52 480,9
RO2 759,62 715,22 928,1
SI662,8653,6768,2
SK1 123,81 106,01 087,0
FI2 526,62 483,32 428,1
SE4 585,24 493,94 031,4
EU156 572,7154 053,7154 295,4


4.

2.2 Revision of the forecasts of TOR, VAT, PPW and GNI bases


In line with Article 44(1), point (b) of the Financial Regulation 8 , the Commission proposes to revise the financing of the budget on the basis of updated economic forecasts. According to the established practice, the revised revenue forecasts are agreed with the Member States in the ACOR forecast procedure.

The revision concerns the forecast of TOR to be paid to the budget in 2023 as well as the forecast of the 2023 VAT, PPW and GNI bases. The forecast included in the 2023 budget was agreed in the 185th ACOR meeting held on 23 May 2022. The revision in the present DAB 3/2023 takes into account the agreed forecasts of the 188th ACOR meeting held on 25 May 2023. The use of an updated forecast of own resources improves the accuracy of the revenue forecasts and hence of the payments that Member States are asked to make to the EU budget during the budgetary year.

The Commission’s revenue projections are based on the Commission 2023 Spring economic forecast 9 , which gives a slightly better outlook for the economy amid persistent challenges. The EU economy is set for moderate growth this year and next year. Despite a challenging global context, the European economy has avoided recession and continues to show resilience. This outcome owes much to the policies put in place by the EU and its Member States. Diversification of energy sources and infrastructural investment to address gas supply bottlenecks and boost renewable energy, which are also supported by the Recovery and Resilience Facility, have paid off. Lower energy prices, abating supply constraints and a strong labour market supported moderate growth in the first quarter of 2023. This better-than-expected start to the year lifts the growth outlook for the EU economy slightly to 1,0 % in 2023 (from 0,8 % expected in the Winter 2023 Forecast). Upward revisions for the euro area are of a similar magnitude, with GDP growth now expected at 1,1 % in 2023. On the back of persisting core price pressures, headline inflation has also been revised upwards compared to the winter, to 5,8 % in 2023 in the euro area. Markedly lower energy prices are working their way through the economy, reducing firms' production costs. Consumers are also seeing their energy bills fall, although private consumption is set to remain subdued as wage growth lags inflation. While the outlook in the central scenario of the Commission spring forecast has not changed much since last winter, downside risks to the economic outlook have increased. Persistence of core inflation has emerged as a key risk. Risks related to the EU’s external environment remain elevated, with new uncertainties following the banking sector turbulence or related to wider geopolitical tensions. Finally, there is persistent uncertainty stemming from Russia’s ongoing war of aggression against Ukraine.

The economic scenario underlying the 2023 budget is broadly confirmed by the latest estimates:

·Total customs duties to be collected in 2023, net of 25 % collection costs, are forecast at EUR 23 730,1 million, which represents an increase of 9,9 % compared with the forecast of EUR 21 590,36 million included in the 2023 budget. The Commission compared the results of the traditional ACOR forecast method (based on the forecast growth rates of extra-EU imports) with the results of the extrapolation method (based on the latest outturn data for collected customs duties, i.e. January – April 2023). As in the past years the Commission takes a conservative approach ensuring sound financial management of the EU budget in a context of economic and financial uncertainties as stipulated in the Spring economic forecast. Therefore, it is proposed to use the outcome of the traditional forecast method for the revision of the 2023 TOR forecast, which is lower than the outcome of the extrapolation method, but still results in higher revenues of EUR 2,1 billion in comparison with DAB 2/2023.

·The total 2023 EU uncapped VAT base is now forecast at EUR 7 522 260,0 million, which represents an increase of 8,6 % compared to the May 2022 forecast of EUR 6 925 198,0 million. The total 2023 EU capped VAT base 10 is forecast at EUR 7 486 175,5 million, which represents an increase of 8,4 % compared to the May 2022 forecast of EUR 6 906 555,6 million. The updated forecast takes into account the simplified definition of the VAT base as provided by the Own Resources Decision 11 .

·The forecast of non-recycled PPW in the EU amounts to 9 891 423,2 tonnes in 2023, which is an increase of 11,6 % compared to the May 2022 forecast of 8 859 902,5 tonnes. The corresponding Member States contributions from the PPW is presented in Table 3 of the accompanying budgetary annex.

·The total 2023 EU GNI base is forecast at EUR 16 883 807,9 million, which is an increase of 3,6 % compared to the May 2022 forecast of EUR 16 299 159,8 million.

The exchange rates of 30 December 2022 have been used for converting the forecast VAT and GNI bases in national currencies into EUR, for the seven Member States that are not members of the euro area. This avoids distortions, since these rates are used to convert budgeted own resources payments from EUR into national currencies when the amounts are called in, as stipulated in Article 10a(1) of Council Regulation 609/2014 12 .

The revised forecasts of TOR, uncapped VAT bases, PPW bases and GNI bases for 2023, as adopted at the 188th ACOR meeting, are set out in the following table:


5.

Revised forecasts of TOR, VAT, PPW and GNI bases for 2023


Customs
(75 %)
Uncapped VAT basesPPW basesGNI basesCapped
VAT bases 13
EUR milliontonnesEUR million
BE2 164,1234 226,9211 801,8582 813,2234 226,9
BG170,345 587,576 347,692 469,745 587,5
CZ449,7127 090,5152 087,5300 318,9127 090,5
DK444,6159 467,0177 087,3389 766,4159 467,0
DE4 796,11 768 749,91 779 081,44 242 782,11 768 749,9
EE65,818 840,930 978,038 647,318 840,9
IE521,8123 760,2236 120,6402 989,5123 760,2
EL338,791 466,2129 529,9222 359,991 466,2
ES2 101,5682 563,31 035 520,71 414 706,7682 563,3
FR2 191,91 384 191,91 955 262,62 883 038,31 384 191,9
HR60,543 375,646 773,873 494,036 747,0
IT2 645,6906 266,01 299 206,42 054 378,6906 266,0
CY40,619 319,910 508,326 781,613 390,8
LV66,720 026,929 282,842 711,220 026,9
LT159,032 237,540 921,372 087,232 237,5
LU15,941 204,915 441,955 437,827 718,9
HU248,982 359,1346 302,1183 824,482 359,1
MT22,39 745,114 479,816 806,38 403,2
NL3 723,3469 784,1291 519,0999 460,3469 784,1
AT288,2226 119,4213 901,9479 248,1226 119,4
PL1 417,8359 995,6811 444,9702 760,4351 380,2
PT266,1125 040,9282 309,5254 201,2125 040,9
RO324,8114 973,4346 971,1315 334,2114 973,4
SI244,331 842,229 817,263 517,531 758,8
SK126,653 809,256 745,4119 060,653 809,2
FI212,0108 626,1111 172,9278 328,0108 626,1
SE623,0241 589,8160 807,5576 484,5241 589,8
EU23 730,17 522 260,09 891 423,216 883 807,97 486 175,5


6.

2.3 United Kingdom contribution


The United Kingdom contribution is to be paid in accordance with Article 148 of the Agreement on the withdrawal of the United Kingdom from the European Union (the ‘Withdrawal Agreement’) 14 and covers in particular the United Kingdom’s share in the outstanding commitments prior to 2021 to be paid in 2023 as well as the United Kingdom’s share in the Union’s liabilities (such as pensions) and the contingent financial liabilities. The overall contribution of the United Kingdom also includes the amounts due to the United Kingdom related to own resources corrections and adjustments for financial years until 2021.

The United Kingdom contribution is based on the United Kingdom’s share 15 , which is calculated as the ratio between the own resources made available by the United Kingdom in the years 2014 to 2020 and the own resources made available during that period by all Member States including the United Kingdom. The United Kingdom’s share was adjusted in 2022 in accordance with Article 139 of the Withdrawal Agreement. The definitive share of the United Kingdom has been set at 12,431681219587700 %.

The table below presents the elements of the United Kingdom contribution that were already included in the April invoice as well as the estimates for elements to be included in the September invoice that are known at this stage. The revised amount of the United Kingdom contribution included in DAB 3/2023 is calculated taking into account the payment modalities set out in Article 148 of the Withdrawal Agreement.

It is therefore proposed to update the estimate introduced in the 2023 budget accordingly.


7.

Updated United Kingdom contribution in 2023 (in EUR)


Reference to the Article of the Withdrawal agreement2023
Total United Kingdom contribution in 2023, of which:9 062 246 065
1. RAL prior 2021 (including net financial corrections) - due for payment in 2023
Art. 140
8 563 340 885
2. Union's liabilities/pensions*
Art.142288 251 050
3. Own resources corrections and adjustments, of which:
699 026 182
3.1 Surplus/deficit of 2020Art.136(3)(a)n/a
3.2 UK correction updates (2018-2019)Art.13611 333 962
3.3. VAT&GNIArt.1361 037 501 234
3.4. TOR**Art.136, Art. 140(4)-349 809 013
4. Fines
Art.141-98 560 248
5. Contingent liabilities, of which:
-347 873 388
5.1 ELM, EFSI, EFSD, loans (Guarantee funds)Art.143-312 568 840
5.2 Financial InstrumentsArt.144-53 678 624
5.3 Legal cases (incl. fines)Art.14718 374 076
6. ECSC net assets
Art.145-36 874 795
7. EIF investment
Art.146-6 648 463
8. Access to networks/systems/data bases***
Art.34(2), Art. 50 and 53, Art. 62(2), Art. 63(1)(e), Art. 63(2), Art.99(3),Art. 100(2)1 584 841
* - the amount of EUR 259 million will be entered in the EU budget as assigned revenues

** - this amount includes the share referred to in Article 139 of the Withdrawal Agreement received by the UK for its payments following the Court judgement C-213/19 (the so-called undervaluation case)

*** - to be entered in the EU budget as assigned revenues


8.

2.4 Fines and penalty payments


Considering the fines and penalty payments cashed from 1 January to 31 May 2023, it is proposed to enter the following amounts in the 2023 budget:

a)EUR 37,5 million of competition fines.

b)EUR 148,4 million of penalty payments and lump sums imposed on Member States, which did not comply with judgments of the Court of Justice of the European Union on their failure to fulfil an obligation under the Treaties.

c)EUR 0,6 million of interest connected with fines and penalty payments.

d)EUR 504,0 million of other non-assigned fines and penalty payments mainly for excess emissions premia.

According to the provisions of Articles 141 of the Withdrawal Agreement, the United Kingdom is entitled to receive its share on an amount of EUR 43 million, included in the above list under items a), c) and d).

It is therefore proposed to increase the initial forecasts introduced in the 2023 budget of EUR 101 million by EUR 589,5 million to EUR 690,5 million.

The detail by line is shown in the table below.

EUR
Revenue lineNameBudget 2023DAB 3/2023New amount
4 2 0Fines in connection with the implementation of the rules on competition100 000 000-62 524 05937 475 941
4 2 1Penalty payments and lump sums imposed on a Member Statep.m.148 411 968148 411 968
4 2 4Interest connected with fines and penalty payments1 000 000-423 740576 260
4 2 9Other non-assigned fines and penalty paymentsp.m.503 991 500503 991 500
Total 101 000 000589 455 669690 455 669

9.

2.5 Impact on the GNI-based own resource contribution for 2023


Taking into account the revised forecasts for TOR, for the simplified VAT base and for the own resource based on non-recycled PPW, the amount of own resources other than GNI has increased by EUR 4 703 876 260. Together with the decrease of other revenues by EUR 432 605 402, this decreases the GNI contribution by EUR 4 462 154 001 compared to DAB 2/2023.

In order to respect the principle of equilibrium applicable to the budget of the European Union enshrined in Article 310(1) TFEU, the uniform rate to be applied to the sum of all Member States’ GNI has to be recalculated taking into account all the other revenue.

The recalculated uniform rate for the GNI-based own resource is fixed as follows:

Uniform rate to be applied on 1 % of GNI = (total expenditure – other revenue – total net amount of TOR – VAT-based own resource – non-recycled PPW-based own resource contributions) / 1 % of GNI

Uniform rate:

= (168 457 786 822 – 14 162 379 985 – 23 730 100 000 – 22 458 526 500 – 7 201 885 360) / 168 838 079 000

= 0,597642993657847

The revised GNI-based own resources contributions considering the new uniform rate are set out in the following table:

10.

Budgetary year 2023 (in EUR)


Member State1 % of GNI base used for DAB 2/2023Uniform rate of GNI-based own resource (in %) according to DAB 2/20231 % of GNI base

(Agreed ACOR forecast)
Uniform rate of GNI-based own resource (in %)

according to DAB 3/2023
Difference in the GNI
(1)(2)(3)(4)(5) = (3 x 4) - (1 x 2)
BE5 630 560 000
0,6464569
5 828 132 000
0,5976430
- 156 772 308
BG795 786 000924 697 00038 197 304
CZ2 781 434 0003 003 189 000- 3 242 436
DK3 774 175 0003 897 664 000- 110 430 024
DE41 301 252 00042 427 821 000-1 342 790 844
EE342 901 000386 473 0009 302 151
IE3 703 703 0004 029 895 00014 154 020
EL2 093 970 0002 223 599 000- 24 743 067
ES13 828 586 00014 147 067 000- 484 689 857
FR27 919 613 00028 830 383 000- 818 551 060
HR635 913 000734 940 00028 141 373
IT19 889 147 00020 543 786 000- 579 627 256
CY252 190 000267 816 000- 2 971 619
LV376 700 000427 112 00011 740 166
LT615 572 000720 872 00032 883 311
LU604 113 000554 378 000- 59 212 911
HU1 670 483 0001 838 244 00018 718 326
MT155 608 000168 063 000- 152 197
NL9 648 131 0009 994 603 000- 263 896 744
AT4 549 330 0004 792 481 000- 76 753 239
PL6 708 365 0007 027 604 000- 136 670 788
PT2 384 950 0002 542 012 000- 22 551 807
RO2 869 778 0003 153 342 00029 384 861
SI592 192 000635 175 000- 3 218 738
SK1 153 958 0001 190 606 000- 34 426 819
FI2 801 598 0002 783 280 000- 147 704 667
SE5 911 590 0005 764 845 000- 376 269 132
Total162 991 598 000168 838 079 000-4 462 154 001


11.

3. Update of expenditure


12.

3.1 Defence Industrial Reinforcement Instrument established by the Act in Support of Ammunition Production (ASAP)


The Russian war against Ukraine reinforces the importance of defence, as reflected in the Commission’s proposal to create the act in support of ammunition production (ASAP) 16 . ASAP establishes a new instrument to support the ramp up of manufacturing capacities of the European defence industry and secure supply chains, with the aim of enabling the timely availability and supply of relevant defence products in the Union via a series of specific and targeted measures to speed up the industry adjustment to structural changes. ASAP is planned to have financial impact from 2023 to 2024 for commitment appropriations and from 2023 to 2028 for payment appropriations.

The Commission therefore proposes to make the necessary additional adjustments to the budget nomenclature, budget remarks and level of appropriations in this DAB for the year 2023.

This includes creating two new budget lines, initially with a token entry (“p.m.’), for which the corresponding budget remarks are set out in the budgetary annex.

EUR
Budget lineNameCommitment appropriationsPayment appropriations
Section III – Commission
13 01 05Support expenditure for the Defence Industrial Reinforcement Instrumentp.m.p.m.
13 07 01Defence Industrial Reinforcement Instrumentp.m.p.m.
Total p.m.p.m.

Given the absence of unallocated margins under heading 5 (Security and Defence), the 2023 financing of the new ASAP defence initiative is proposed to be financed entirely through redeployments of amounts initially earmarked for the European Defence Industry Reinforcement through common Procurement Act (EDIRPA) as per the legislative financial statement (LFS) accompanying ASAP. The corresponding amounts are proposed to be entered into the reserve (the ‘provisions’ title) until the basic act is adopted by the co-legislators. Should the co-legislators decide differently, the Commission will propose the necessary changes. Additionally, given the observed delay in the EDIRPA legislative process compared to the initial assumptions, it is proposed to return the corresponding amount in payment appropriations of EUR 71 million.

EUR
Budget lineNameCommitment appropriationsPayment appropriations
Section III – Commission
30 02 02Differentiated appropriations (Reserve for budget article 13 06 01)- 1 000 000
- 1 000 000
30 02 01Non-differentiated appropriations (Reserve for budget article 13 01 05)+ 1 000 000
+ 1 000 000
30 02 02Differentiated appropriations (Reserve for budget article 13 06 01)- 156 027 699
- 71 000 000
30 02 02Differentiated appropriations (Reserve for budget article 13 07 01)+ 156 027 699
0
Total 0- 71 000 000


13.

3.2 Financing of the European Chips Act for 2023


The Commission proposes to include in DAB 3/2023 the necessary adjustments in relation to the financing of the European Chips Act for 2023, on which a political agreement between the co-legislators was reached on 18 April 2023.

The total contribution of Horizon Europe to the European Chips Act until 2027 will amount to EUR 1 725 million, of which EUR 1 425 million will be implemented by the Chips joint undertaking and EUR 300 million by the European Innovation Council (EIC). With respect to the year 2023, the agreed financing solution for the Chips Act deviates from the elements included in the 2023 budget in the following aspects: (i) a reinforcement in commitment appropriations of the Digital Europe Programme 6th objective dedicated to semiconductors of EUR 100 million, taken from the unallocated margin under the expenditure ceiling of heading 1 (Single Market, Innovation and Digital) and (ii) the return to Horizon Europe Cluster 4 “Digital, Industry and Space” of an amount of EUR 80 million in commitment appropriations, which was initially proposed to be redeployed from Horizon Europe to the Digital Europe Programme.

Additionally, the Commission proposes a more balanced contribution to the European Chips Act amongst clusters of Horizon Europe. Compared to the initial Commission proposal, the 2023 envelope of the Chips Joint Undertaking is proposed to be slightly backloaded to 2026-2027. Accordingly, an amount of EUR 15,2 million is proposed to be returned from the Chips Joint Undertaking to Horizon Europe Cluster 3 “Civil Security for Society” in this DAB.

The current level of payment appropriations in the 2023 budget is considered sufficient to cover this year’s payment needs under both Horizon Europe and the Digital Europe programme, therefore the corresponding amount in payment appropriations (EUR 80 million) is proposed to be cancelled.

The overall impact on expenditure is therefore as follows:

EUR
Budget lineNameCommitment appropriationsPayment appropriations
Section III – Commission
01 02 02 30Cluster ‘Civil Security for Society’+ 15 200 000
0
01 02 02 42Cluster ‘Digital, Industry and Space’ — Chips Joint Undertaking- 15 200 000
- 15 200 000
02 04 06 11Semiconductors – Chips Joint Undertaking+ 100 000 000
0
02 04 06 11Semiconductors – Chips Joint Undertaking- 80 000 000
- 80 000 000
01 02 02 40Cluster ‘Digital, Industry and Space’+ 80 000 000
0
Total 100 000 000- 95 200 000


14.

3.3 Sustainable Fisheries Partnership Agreements (SFPA) reserve line


The SFPA reserve line currently amounts to EUR 48,7 million in commitment appropriations and EUR 28,2 million in payment appropriations. This corresponds to the amount entered into the reserve to cover for the agreements and protocols with regard to fisheries between the Union and the governments of specific third countries that are not yet adopted, in line with Article 49 of the Financial Regulation and with point 20 of the Interinstitutional Agreement on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources 17 .

Considering the status of the negotiations on the future protocols, it is clear that none of the protocols with Morocco, Liberia and Solomon Islands will start or be concluded in 2023. In particular:

·the future of the protocol with Morocco remains uncertain and depends on the forthcoming judgment of the Court of Justice in the pending case C-798/21 P, Council v Front Polisario, which is now not expected before early 2024;

·the negotiations with Liberia depend on the development and eventual closure of the open dialogue between the Commission and the Liberian authorities in the framework of the fight against illegal, unreported and unregulated fishing (IUU). Upon positive conclusion of the IUU dialogue, negotiations would not start before 2024;

·the negotiation process for a new protocol with Solomon Islands has been delayed.

Finally, given that the quantity for capelin fish related to the current protocol with Greenland has been agreed and established, the amount on the main line is sufficient and the corresponding reserve is no longer needed.

The Commission therefore proposes to cancel the amounts that will not be needed in 2023. This corresponds to respectively EUR 45,3 million in commitment appropriations and EUR 24,8 million in payment appropriations, as follows:

EUR
Budget lineNameCommitment appropriationsPayment appropriations
Section III – Commission
30 02 02Differentiated appropriations (Reserve for budget article 08 05 01)- 45 265 000
- 24 765 000
Total - 45 265 000
- 24 765 000

15.

3.4 European Data Protection Supervisor (EDPS)


A reinforcement of the EDPS budget by EUR 81 857 is proposed to cover the rent, charges and other expenditure for the EDPS building facilities, which are hosted by the European Parliament. Now that the European Parliament has confirmed the actual costs for 2023, i.e. an increase of 10,63 % due to high inflation, the level of appropriations available is no longer sufficient to cover contractual obligations. Therefore, it is proposed to increase the level of commitment and payment appropriations by EUR 81 857 as shown in the table below, to be taken from the margin under heading 7 (European Public Administration):

EUR
Budget lineNameCommitment appropriationsPayment appropriations
Section IX – European Data Protection Supervisor
2 0 0Rents, charges and buildings expenditure81 85781 857
Total 81 85781 857


16.

4. Financing


Overall, the net impact of DAB 3/2023 on expenditure amounts to an increase of EUR 54,8 million in commitment appropriations and a decrease of EUR 190,9 million in payment appropriations. The revenue side of the budget is proposed to be adjusted as set out in this DAB 3/2023.

17.

5. Summary table by MFF heading


Budget 2023 (incl. AB1/2023 and DAB 2/2023)Draft Amending Budget 3/2023Budget 2023 (incl. AB 1/2023 and DABs 2-3/2023)
CAPACAPACAPA
1.Single Market, Innovation and Digital21 595 056 58920 898 092 074100 000 000-95 200 00021 695 056 58920 802 892 074
Of which under Flexibility Instrument
Ceiling21 727 000 00021 727 000 000
Margin131 943 411-100 000 00031 943 411
2.Cohesion, Resilience and Values70 586 704 06358 058 661 39970 586 704 06358 058 661 399
Of which under Flexibility Instrument182 220 073182 220 073
Of which under Single Margin Instrument 11(1)(a)280 000 000280 000 000
Ceiling70 137 000 00070 137 000 000
Margin12 516 01012 516 010
2a.Economic, social and territorial cohesion62 926 483 99050 874 959 22962 926 483 99050 874 959 229
Of which under Flexibility Instrument
Ceiling62 939 000 00062 939 000 000
Margin12 516 01012 516 010
2b.Resilience and values7 660 220 0737 183 702 1707 660 220 0737 183 702 170
Of which under Flexibility Instrument182 220 073182 220 073
Of which under Single Margin Instrument 11(1)(a)280 000 000280 000 000
Ceiling7 198 000 0007 198 000 000
Margin
3.Natural Resources and Environment57 263 408 22557 457 310 265-45 265 000-24 765 00057 218 143 22557 432 545 265
Of which under Flexibility Instrument
Ceiling57 295 000 00057 295 000 000
Margin31 591 77545 265 00076 856 775
Of which: Market related expenditure and direct payments40 692 21140 698 181 35640 692 21140 698 181 356
EAGF sub-ceiling41 518 000 00041 518 000 000
Rounding difference excluded for calculating the sub-margin800 000800 000
Net transfers between EAGF and EAFRD-825 800 000-825 800 000
Net balance available for EAGF expenditure (sub-ceiling corrected by transfers between EAGF and EAFRD)40 693 000 00040 693 000 000
EAGF sub-margin789 000789 000
4.Migration and Border Management3 727 311 5183 038 380 2523 727 311 5183 038 380 252
Of which under Flexibility Instrument
Ceiling3 814 000 0003 814 000 000
Margin86 688 48286 688 482
5.Security and Defence2 116 636 8291 208 374 612-71 000 0002 116 636 8291 137 374 612
Of which under Flexibility Instrument170 636 829170 636 829
Ceiling1 946 000 0001 946 000 000
Margin
6.Neighbourhood and the World17 211 879 47813 994 937 84517 211 879 47813 994 937 845
Of which under Flexibility Instrument882 879 478882 879 478
Ceiling16 329 000 00016 329 000 000
Margin
7.European Public Administration11 313 119 51811 313 119 51881 85781 85711 313 201 37511 313 201 375
Of which under Flexibility Instrument
Ceiling11 419 000 00011 419 000 000
Margin105 880 482-81 857105 798 625
of which: Administrative expenditure of the institutions8 745 600 0428 745 600 04281 85781 8578 745 681 8998 745 681 899
Sub-ceiling8 772 000 0008 772 000 000
Sub-margin26 399 958-81 85726 318 101
Appropriations for headings183 814 116 220165 968 875 96554 816 857-190 883 143183 868 933 077165 777 992 822
Ceiling182 667 000 000168 575 000 000182 667 000 000168 575 000 000
Of which under Flexibility Instrument1 235 736 380948 114 7331 235 736 380948 114 733
Of which under Single Margin Instrument 11(1)(a)280 000 000280 000 000
Margin368 620 1603 554 238 768-54 816 857190 883 143313 803 3033 745 121 911
Thematic special instruments2 855 153 0292 679 794 0002 855 153 0292 679 794 000
Total appropriations186 669 269 249168 648 669 96554 816 857-190 883 143186 724 086 106168 457 786 822


(1) Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the European Union and repealing Decision 2014/335/EU, Euratom, OJ L 424, 15.12.2020.
(2) Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012, OJ L 193, 30.7.2018.
(3) OJ L 58, 23.2.2023.
(4) OJ X XX, 13.6.2023.
(5) COM(2023) 250 final, 12.4.2023.
(6) COM(2022) 46, 8.2.2022.
(7) COM(2023) 250 final, 12.4.2023.
(8) Regulation (EU, Euratom) 2018/1046/EU of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union (OJ L 193, 30.7.2018, p. 1-222).
(9) European Commission, 2023, European Economic Forecast Spring 2023, European Economy, Institutional Paper 200.
(10) Article 2(1), point (b) of ORD 2020 stipulates that for each Member State the VAT base shall not exceed 50 % of GNI. For DAB 3/2023, Croatia, Cyprus, Luxembourg, Malta, Poland and Slovenia will have their VAT base capped at 50 % of GNI.
(11) Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the European Union and repealing Decision 2014/335/EU, Euratom, OJ L 424, 15.12.2020, p. 1–10.
(12) Council Regulation (EU, Euratom) No 609/2014 of 26 May 2014 on the methods and procedure for making available the traditional, VAT and GNI-based own resources and on the measures to meet cash requirements (OJ L 168, 7.6.2014, p. 39), as last amended by Council Regulation (EU, Euratom) 2022/615 of 5 April 2022 (OJ L 115, 13.4.2022, p. 51).
(13) The amounts highlighted in grey result from the capped VAT bases, as explained in footnote 10 above.
(14) Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community, OJ L 29, 31.01.2020, p. 7.
(15) Referred to in Article 136(3), points (a) and (c), and in Articles 140 to 147 of the Withdrawal Agreement.
(16) COM(2023) 237, 3.5.2023.
(17) OJ L 433I , 22.12.2020, p. 28–46.