PURPOSE: definitive adoption of amending budget No 4 of the European Union for the financial year 2010.

LEGISLATIVE ACT: 2010/774/EU, Euratom.

CONTENT: the European Parliament and the Council definitively adopted the amending budget No 4/2010 of the European Union, in accordance with its resolution of 21 September 2010 (please refer to the summary of the resolution).

This amending budget covers modifications to the establishment plan of OLAF , without additional financial provisions, as well as the revision of the forecast of Traditional Own Resources (TOR, i.e. customs duties and sugar sector levies), VAT and GNI bases, the budgeting of the relevant UK corrections as well as their financing and revision of financing of GNI reductions in favour of the Netherlands and Sweden in 2010, resulting in a change in the distribution between Member States of their own-resources contributions to the EU budget.

It should be noted that this amending budget was initially presented as draft amending budget 5/2010.

The European Parliament adopted by 554 votes to 21, with 21 abstentions, a resolution approving unamended the Council’s position on Draft amending budget No 5/2010 of the European Union for the financial year 2010, Section III - Commission.

Parliament noted that the Draft amending budget covered modifications to the establishment plan of OLAF, without additional financial provisions, as well as the revision of the forecast of Traditional Own Resources (TOR, i.e. customs duties and sugar sector levies), VAT and GNI bases, the budgeting of the relevant UK corrections as well as their financing and revision of financing of GNI reductions in favour of the Netherlands and Sweden in 2010, resulting in a change in the distribution between Member States of their own-resources contributions to the EU budget.

These adjustments would be formally entered into the 2010 budget.

On 16 June 2010, the Commission submitted draft amending budget (DAB) No 5 to the general budget for 2010.

This DAB covered the revision of the forecast of traditional own resources (TOR, i.e. customs duties and sugar levies), VAT and GNI bases, the budgeting of the relevant UK corrections as well as their financing and the revision of the financing of GNI reductions in favour of the Netherlands and Sweden in 2010. The result would be a change in the distribution between Member States of their own resources contributions to the EU budget.

The DAB also included a modification to the establishment plan of OLAF, which would allow the recruitment of temporary agents as officials. The creation of 20 additional AD10 permanent posts was compensated by an equivalent reduction of AD10 temporary posts in the establishment plan proposed for OLAF in the 2011 draft budget. No additional financial provisions were therefore requested.

The Council reached an agreement on the Commission proposal. As for the revenue, it was updated, taking into account draft amending budget No. 2/2010.

On 13 September 2010, the Council adopted its position on draft amending budget No 5 of the European Union for the financial year 2010 as set out in the technical annex to its explanatory memorandum (see Council Doc 13473/10 ADD 1 ).

The Committee on Budgets adopted the report drafted by László SURJÁN (EPP, HU) which recommends that the European Parliament approve the Council’s position on Draft amending budget No 5/2010 of the European Union for the financial year 2010, Section III - Commission.

The committee recalls that the Draft amending budget covers modifications to the establishment plan of OLAF, without additional financial provisions, as well as the revision of the forecast of Traditional Own Resources (TOR, i.e. customs duties and sugar sector levies), VAT and GNI bases, the budgeting of the relevant UK corrections as well as their financing and revision of financing of GNI reductions in favour of the Netherlands and Sweden in 2010, resulting in a change in the distribution between Member States of their own-resources contributions to the EU budget.

These adjustments shall be formally entered into the 2010 budget.

PURPOSE: to present Draft Amending Budget No 5 (DAB 5/2010) to the 2010 budget.

CONTENT: DAB No 5/2010 covers the following elements:

the modifications to the establishment plan of OLAF, without additional financial provisions; the revision of the forecast of Traditional Own Resources (TOR, i.e. customs duties and sugar sector levies), VAT and GNI bases, the budgeting of the relevant UK corrections as well as their financing and revision of financing of GNI reductions in favour of the Netherlands and Sweden in 2010, resulting in a change in the distribution between Member States of their own resources contributions to the EU budget.