PURPOSE: to provide address additional financing needs of the ITER project through the revision of the 2007-2013 Multiannual Financial Framework.

NON-LEGISLATIVE ACT: Decision 2012/5/EU of the European Parliament and of the Council amending the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management as regards the multiannual financial framework, to address additional financing needs of the ITER project.

CONTENT: by this Decision, the European Parliament and the Council amend the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management as regards the multiannual financial framework, to address additional financing needs of the ITER project.

At the trilogue meeting of 1 December 2011 the European Parliament, the Council and the Commission have agreed on the modalities for providing additional financing to the ITER project. The financing requires a revision of the multiannual financial framework 2007-2013 in accordance with the Interinstitutional Agreement, so as to raise the ceilings for commitment appropriations under subheading 1a:

by EUR 650 million for the year 2012; by EUR 190 million for the year 2013.

The increase of the ceilings for commitment appropriations under subheading 1a for the years 2012 and 2013 will be fully offset by a decrease of the ceilings for commitment appropriations for the year 2011 under heading 2 and of commitment appropriations for the years 2011 and 2012 under heading 5 .

In order to keep an appropriate relationship between commitments and payments, the annual ceilings for payment appropriations will be adjusted. The adjustment will be neutral in terms of payment requirements over the period 2007-2013.

The European Parliament adopted by 581 votes to 102 with 16 abstentions, a resolution approving the proposal for a decision of the European Parliament and of the Council amending the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management as regards the multiannual financial framework, to address additional financing needs of the ITER project.

Parliament recalls that an additional EUR 1 300 million in commitment appropriations from the Union budget are required for the ITER project in 2012-2013, and that at the budgetary trilogue meeting of 1 December 2011, Parliament, the Council and the Commission agreed on the modalities for providing this additional financing to the project. This requires a revision of the IIA of 17 May 2006, so as to raise the ceilings for commitment appropriations under subheading 1a by EUR 650 million for the year 2012 and by EUR 190 million for the year 2013 in current prices.

Parliament deplores, however, the fact that different interpretations, legal constraints and binding commitments have prevented the Council from entering swiftly into real political negotiations with the other branch of the budgetary authority.

The Decision aims to approve the Joint Conclusions of the budgetary trilogue held on 1 December 2011 , the main points of which are as follows:

· a revision of the IIA of 17 May 2006, so as to raise the ceilings for commitment appropriations under subheading 1a by EUR 650 million for the year 2012 and by EUR 190 million for the year 2013 in current prices;

· the increase in the ceilings for commitment appropriations of Heading 1a for the years 2012 and 2013 will be offset by a corresponding decrease of the ceilings for commitment appropriations of Heading 2 and Heading 5 for the year 2011 and 2012;

· in order to keep an appropriate relationship between commitments and payments, the annual ceilings for payment appropriations will be adjusted (the adjustment will be neutral in terms of payment requirements over the period 2007-2013).

In the resolution adopted in plenary, Parliament also emphasises that Parliament, the Council and the Commission agreed to the Joint Conclusions of the budgetary trilogue held on 1 December 2011 in their entirety. It deeply regrets the unilateral statement included in the Council minutes by six Member States intended to make a biased interpretation of the Joint Conclusions, and calls upon the Council to fully respect the Joint Conclusions. Parliament reminds the Council of its agreement to making full use of the provisions laid down in the Financial Regulation and in the IIA of 17 May 2006 in order to make available, within the MFF commitment appropriation ceilings, the amount of EUR 360 million in the 2013 budget procedure. It affirms that otherwise Parliament cannot guarantee its agreement to that amount. It urges the Commission to use to the full extent the provisions laid down in the Financial Regulation and in the IIA of 17 May 2006 when making concrete proposals on the amount of EUR 360 million within the 2013 Draft budget.

With regard to the Joint Conclusions on the financing of the ITER project resulting from the trialogue of 1 December 2011, Parliament recalls the main points:

(1) The European Parliament, the Council and the Commission agree to cover the EUR 1 300 million additional cost of the ITER project in 2012-2013 as follows:

· EUR 100 million already included in the 2012 budget on the ITER budget lines;

· EUR 360 million in commitment appropriations will be made available in the 2013 budget procedure within the MFF commitment appropriations ceilings making full use of the provisions laid down in the Financial Regulation and in the IIA of 17 May 2006, excluding any further ITER-related revision of the MFF;

· the ceilings for commitment appropriations of Heading 1a for the years 2012 and 2013 will be increased by an amount of EUR 840 million, of which EUR 650 million in 2012 and EUR 190 million in 2013. This increase will be offset by a corresponding decrease of the ceilings for commitment appropriations of Heading 2 (EUR 450 million for the year 2011) and Heading 5 (EUR 243 million for the year 2011 and EUR 147 million for the year 2012);

· the 2013 ceiling for total payment appropriations will be increased by EUR 580 million offset by a corresponding decrease in the 2011 ceiling.

(2) The European Parliament and the Council agree to adopt the above mentioned revision of the Multiannual Financial Framework 2007-2013 before the end of 2011, according to their respective internal procedures.

(3) The European Parliament and the Council invite the Commission to make concrete proposals on the amount of EUR 360 million within Draft Budget 2013.

In conclusion, Parliament adopted the amendment to the IIA fully respecting the points agreed at the trialogue of 1 December 2011.

The Committee on Budgets adopted the report drafted by Reimer BÖGE (EPP, DE) on the proposal for a decision of the European Parliament and of the Council amending the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management as regards the multiannual financial framework, to address additional financing needs of the ITER project.

Members recall that an additional EUR 1 300 million in commitment appropriations from the Union budget are required for the ITER project in 2012-2013, and that at the budgetary trilogue meeting of 1 December 2011, Parliament, the Council and the Commission agreed on the modalities for providing this additional financing to the project.

In this context, this requires a revision of the IIA of 17 May 2006 , so as to raise the ceilings for commitment appropriations under subheading 1a by EUR 650 million for the year 2012 and by EUR 190 million for the year 2013 in current prices.

Members approve the decision annexed to this resolution which aims to amend the Interinstitutional Agreement as regards the Multiannual Financial Framework in order to provide the additional EUR 1 300 million commitment appropriations from the EU budget required for the ITER project in 2012-2013.

The decision provides a timetable for the provision of the necessary amounts:

EUR 100 million already included in the 2012 budget on the ITER budget lines; EUR 360 million in commitment appropriations will be made available in the 2013 budget procedure within the MFF commitment appropriations ceilings making full use of the provisions laid down in the Financial Regulation and in the IIA of 17 May 2006, excluding any further ITER-related revision of the MFF; the ceilings for commitment appropriations of Heading 1a for the years 2012 and 2013 will be increased by an amount of EUR 840 million, of which EUR 650 million in 2012 and EUR 190 million in 2013. This increase will be offset by a corresponding decrease of the ceilings for commitment appropriations of Heading 2 (EUR 450 million for the year 2011) and Heading 5 (EUR 243 million for the year 2011 and EUR 147 million for the year 2012); the 2013 ceiling for total payment appropriations will be increased by EUR 580 million offset by a corresponding decrease in the 2011 ceiling.

In parallel, Members invite the Commission to make concrete proposals on the amount of EUR 360 million within Draft Budget 2013 .

The Council took note of a presentation by the Commission on a proposal for amending the EU's current multiannual financial framework in order to address additional financing needs of the ITER project. The initiative proposes a budgetary redeployment in order to provide additional funds for ITER, whilst keeping unchanged the overall ceilings for commitment and payment appropriations of the financial framework over the period 2007-2013.

The final decision is to be approved by the European Parliament and the Council.

PURPOSE: to provide address additional financing needs of the ITER project through the revision of the 2007-2013 Multiannual Financial Framework.

CONTENT: the present proposal replaces the Commission's proposal of 20 July 2010 for a decision of the European Parliament and of the Council amending the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management as regards the multiannual financial framework, to address additional financing needs of the ITER project (see ACI/2010/2125 ).

The proposal takes progress made so far in negotiations into account, notably with regard to the level of redeployment within Heading 1A and the amounts for additional commitment and payment appropriations required for ITER under Heading 1A in 2012 and 2013. It aims at facilitating a rapid agreement by the budgetary authority with a view to securing the success of the ITER project.

The financing requires a revision of the multiannual financial framework 2007-2013 in accordance with Points 21, 22, and 23 of the Interinstitutional Agreement, so as to raise the ceilings for commitment appropriations under sub-Heading 1A by:

EUR 650 million for the year 2012 and; EUR 190 million for the year 2013 in current prices .

The increase of the ceilings for commitment appropriations under sub-Heading 1 A for the years 2012 and 2013 will be fully offset by a decrease of the ceilings for commitment appropriations for the year 2011 under Heading 2 and Heading 5.

The proposed adjustment between expenditure ceilings leaves a margin of EUR 1028.8 million available under the ceiling of Heading 2 and of EUR 53.2 million under Heading 5 in 2011. The Commission has undertaken to take all appropriate measures to ensure that decisions taken on CAP expenditure and its financing, including the agreement on the Health Check, are respected.

In order to keep an appropriate relationship between commitments and payments, the annual ceilings for payment appropriations will be adjusted. The adjustment will be neutral in terms of payment requirements over the period 2007-2013.