Explanatory Memorandum to COM(2024)301 - Amendment of Regulation (EU) 2021/1148 as regards the financial envelope and the allocation for the thematic facility

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1. CONTEXT OF THE PROPOSAL

Reasons for and objectives of the proposal

On 20 June 2023, the Commission adopted a proposal for the mid-term revision of the Multiannual Financial Framework1 (MFF) aiming at reinforcing the EU’s long-term budget to increase the Union’s resilience and leadership in the most urgent priorities and needs, including to tackle urgent challenges related to migration and border management as well as for the implementation of the New Pact on Migration and Asylum.

On 29 February 2024, the Council adopted an amendment to Regulation (EU, Euratom) 2020/20932 with the consent of the European Parliament for the mid-term revision of the MFF.

The MFF revision includes increases of resources for several EU programmes. To mitigate the impact of the revision of the MFF on national budgets, these increases will be partly compensated by redeployments and reprioritisations within the EU budget. The net increase of funding for new priorities amounts to EUR 21 billion until the end of this MFF.

This requires modifying the expenditure ceilings, as well as, in some cases, amendments of the budgetary provisions of the legislative acts for the programmes or instruments concerned, in line with point 18 of the Interinstitutional Agreement of 16 December 20203 as regards the incorporation of financial provisions in legislative acts. In particular, Regulation (EU) No 2021/1148 must be amended as the appropriate increase of the financial envelope of the programme goes beyond the flexibility under that Interinstitutional Agreement4. In addition, there is a parallel proposal amending several other regulations of the European Parliament and of the Council5.

There is a pressing need to provide the Union with appropriate funding and to provide legal certainty to the preparations of the draft budget of the Union for the financial year 2025, as well as for the financial programming for the years 2026 and 2027. The Commission therefore calls on the European Parliament and the Council to ensure a rapid adoption via the use of an urgent adoption procedure.

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

Legal basis

This proposal is based on Article 77(2) and Article 79(2), point (d) of the Treaty on the Functioning of the European Union (‘TFEU’).

Subsidiarity (for non-exclusive competence)

This proposal is in line with the subsidiarity principle, as it only affects the budgetary provisions of the Regulation to be amended, not its scope, objective, or delivery mode.

Proportionality

This proposal respects the proportionality principle, as it is limited to changes strictly necessary to give effect to the amendment to Regulation (EU, Euratom) 2020/2093.

Choice of the instrument

Regulation 2021/1148 should be amended by way of a Regulation to give effect to the amendment of Council Regulation 2020/2093.

3. BUDGETARY IMPLICATIONS

The amendment to Regulation (EU, Euratom) 2020/2093 includes reinforcements of funds for several EU programmes including of the Instrument for Financial Support for Border Management and Visa Policy.

Under Heading 4 “Migration and Border Management”, this proposal will result in an increase of the Instrument for Financial Support for Border Management and Visa Policy under the thematic facility by EUR 1 000 000 000 in current prices.

This amount will be allocated to the Thematic Facility which can be implemented through direct, indirect and shared management. The reinforcement will provide funding for the implementation of the New Pact on Migration and Asylum and to support Member States in managing urgent challenges and needs related to migration and border management in frontline Member States, as well as in those affected by the wars in Ukraine and the Middle East.

The above increase is expressed in current prices and sets a limit on the amounts of commitment appropriations to be included in the annual budgets for years 2025, 2026 and 2027.

4. OTHER ELEMENTS

Implementation plans and monitoring, evaluation and reporting arrangements

The proposed amendments result from the mid-term revision of the MFF and do not modify the monitoring and reporting obligations of Regulation (EU) 2021/1148.


Detailed explanation of the specific provisions of the proposal

Amendments to Regulation (EU) 2021/1148 to increase the financial envelope for the implementation of the Instrument for Financial Support for Border Management and Visa Policy through an increase in the thematic facility allocation by EUR 1 000 000 000 in current prices. In particular:

- In Article 7, paragraph 1 is amended as to set the financial envelope for the instrument to EUR 6 241 000 000.

- In Article 7, point (b) of paragraph 3 is amended as to set the allocation for thematic facility referred to in Article 8 to EUR 2 573 000 000.