PURPOSE: adoption of amending budget No 4 of the European Union for the financial year 2011.

LEGISLATIVE ACT: 2011/748/EU, Euratom.

CONTENT: the European Parliament adopted Amending Budget 4/2011 of the European Union, in accordance with its resolution of 28 September 2011 (please see the summary of that resolution).

This amending budget has two aims:

· reinforcement of appropriations under sub-heading 3a of the budget;

· revision of the forecast of traditional own resources,

The total cumulative amount of the amending budget is EUR 41.1 million in commitment appropriations and EUR 0 in payment appropriations.

The European Parliament adopted by 513 votes to 79, with 25 abstentions, a resolution approving, without amendment, the Council’s position on Draft amending budget No 4/2011 of the European Union for the financial year 2011, Section III – Commission.

Parliament takes note of Draft amending budget No 4/2011 and approve it without amendment.

It recalls that the aim of Draft amending budget No 4/2011 to the general budget 2011 is twofold, namely:

a reinforcement of appropriations under sub-heading 3a; a revision of the forecast of traditional own resources.

The reinforcement of commitment appropriations by nearly EUR 41.1 million for the management of migration and refugee flows (through the Frontex Agency, the External Borders Fund, the European Return Fund and the European Refugee Fund) is part of a multiform response of the EU to the political developments in Southern Mediterranean countries.

The increase in commitment appropriations is net and in line with the principle of ‘new appropriations for new tasks’. The proposed concomitant reinforcement of payment appropriations by EUR 43,9 million is rendered possible by redeployments from under-implemented payments from the European Economic Recovery Plan – Energy network.

Parliament stipulates that the under-implemented payments from the above-mentioned budget item will have been exhausted through the adoption of amending Budget No 2/2011, Draft amending budget 4/2011, and several transfers and that any potential forthcoming requirements for payments for the year 2011 should be presented taking into account the Joint Statement on payment appropriations adopted by the two branches of the budgetary authority.

At the same time, Parliament notes, with great surprise, the contradictory positions taken by the Council , which approved reinforcements of several programmes under subheading 3a in DAB No 4/2011 but takes an opposite position on the very same instruments for the financial year 2012 by reducing appropriations.

It recalls, in that respect, that consistency and coherence of EU commitments on its instruments are prerequisites for efficient and optimised spending, which is much sought after in a tense and constrained budgetary environment.

The Committee on Budgets adopted the report drafted by Sidonia Elżbieta JĘDRZEJEWSKA (EPP, PL) in which it calls on the European Parliament to approve, without amendment, the Council’s position on Draft amending budget No 4/2011 of the European Union for the financial year 2011, Section III – Commission.

Members take note of Draft amending budget No 4/2011 and approve it without amendment.

They recall that the aim of Draft amending budget No 4/2011 to the general budget 2011 is twofold, namely:

a reinforcement of appropriations under sub-heading 3a; a revision of the forecast of traditional own resources.

The reinforcement of commitment appropriations by nearly EUR 41.1 million for the management of migration and refugee flows (through the Frontex Agency, the External Borders Fund, the European Return Fund and the European Refugee Fund) is part of a multiform response of the EU to the political developments in Southern Mediterranean countries.

The increase in commitment appropriations is net and in line with the principle of ‘new appropriations for new tasks’. The proposed concomitant reinforcement of payment appropriations by EUR 43.9 million is rendered possible by redeployments from under-implemented payments from the European Economic Recovery Plan – Energy network.

Members stipulate that the under-implemented payments from the above-mentioned budget item will have been exhausted through the adoption of amending Budget No 2/2011, Draft amending budget 4/2011, and several transfers and that any potential forthcoming requirements for payments for the year 2011 should be presented taking into account the Joint Statement on payment appropriations adopted by the two branches of the budgetary authority.

At the same time, the committee notes, with great surprise, the contradictory positions taken by the Council , which approved reinforcements of several programmes under subheading 3a in DAB No 4/2011 but takes an opposite position on the very same instruments for the financial year 2012 by reducing appropriations.

It recalls, in that respect, that consistency and coherence of EU commitments on its instruments are prerequisites for efficient and optimised spending, which is much sought after in a tense and constrained budgetary environment.

On 17 June 2011, the Commission submitted to the Council draft amending budget (DAB) No 4 to the general budget for 2011, covering following elements:

revision of the forecast of Own Resources; reinforcement of commitment appropriations (c/a) and payment appropriations (p/a) for EU actions in the field of migration; reduction of the level of p/a for energy projects under the European Economic Recovery Plan (EERP).

The combined net financial impact of this draft amending budget is EUR 41.1 million in c/a and none in p/a.

Revision of the Member States' contributions to the EU budget for 2011 : this part of the DAB No 4 covers the revision of Member States' contributions to the EU budget. It steams from the revision of forecasts of the traditional own resources (TOR) and of VAT and GNI bases based on more recent economic updates. It also includes the budgeting of the rectified UK corrections for the years 2006, 2007 and 2010 and the revision of the financing of the GNI reductions in 2011, in favour of the Netherlands and Sweden.

Migration and Refugee flows : due to the recent developments in the Southern Mediterranean resulting in the high migratory pressure, the Commission proposed to reinforce appropriations for the management of migration flows, supporting the efforts of Member States directly concerned. They would be allocated as follows:

EUR 22.2 million in c/a and EUR 19.9 million in p/a for the External Borders Fund, the European Return Fund and the European Refugee Fund to finance transnational actions in situations of emergency; EUR 30 million in c/a and EUR 24 million in p/a for Frontex, with a view to strengthen the agency's capacities in carrying out the maritime surveillance.

c/a will be covered by redeployment of EUR 10 million from Article 18 05 09 (Prevention of and fight against crime) and of EUR 1.1 million from the assigned revenue appropriations. EUR 41.1 million will be drawn from the margin under sub-heading 3a which currently stands at EUR 67 millions. p/a (EUR 43.9 million) will be covered by redeployment from Article 32 04 04 (Energy projects to aid economic recovery).

Energy projects under the European Economic Recovery Plan (EERP) : the Commission reviewed downwards the level of p/a necessary in 2011 for the financing of some energy projects under the EERP due to delays in payment schedules. The under-implementation amounts to EUR 357.1 million for Item 32 04 14 01 (Energy networks) and EUR 36 million for Item 32 04 14 03 (Carbon Capture and Storage). Taking into account two necessary reinforcements of Items 32 04 14 03 (European offshore wind grid system) and 32 04 14 04 (Energy efficiency and renewable initiatives) for an amount of EUR 41 million, the total expected under-implementation for energy projects under the EERP at year-end amounts to EUR 352 million in p/a available for redeployment.

Conclusion : on 12 September 2011, the Council adopted its position on draft amending budget No 4 of the European Union for the financial year 2011 as set out in the technical annex to the explanatory memorandum to this draft amending budget.

On 17 June 2011, the Commission submitted to the Council draft amending budget (DAB) No 4 to the general budget for 2011, covering following elements:

revision of the forecast of Own Resources; reinforcement of commitment appropriations (c/a) and payment appropriations (p/a) for EU actions in the field of migration; reduction of the level of p/a for energy projects under the European Economic Recovery Plan (EERP).

The combined net financial impact of this draft amending budget is EUR 41.1 million in c/a and none in p/a.

Revision of the Member States' contributions to the EU budget for 2011 : this part of the DAB No 4 covers the revision of Member States' contributions to the EU budget. It steams from the revision of forecasts of the traditional own resources (TOR) and of VAT and GNI bases based on more recent economic updates. It also includes the budgeting of the rectified UK corrections for the years 2006, 2007 and 2010 and the revision of the financing of the GNI reductions in 2011, in favour of the Netherlands and Sweden.

Migration and Refugee flows : due to the recent developments in the Southern Mediterranean resulting in the high migratory pressure, the Commission proposed to reinforce appropriations for the management of migration flows, supporting the efforts of Member States directly concerned. They would be allocated as follows:

EUR 22.2 million in c/a and EUR 19.9 million in p/a for the External Borders Fund, the European Return Fund and the European Refugee Fund to finance transnational actions in situations of emergency; EUR 30 million in c/a and EUR 24 million in p/a for Frontex, with a view to strengthen the agency's capacities in carrying out the maritime surveillance.

c/a will be covered by redeployment of EUR 10 million from Article 18 05 09 (Prevention of and fight against crime) and of EUR 1.1 million from the assigned revenue appropriations. EUR 41.1 million will be drawn from the margin under sub-heading 3a which currently stands at EUR 67 millions. p/a (EUR 43.9 million) will be covered by redeployment from Article 32 04 04 (Energy projects to aid economic recovery).

Energy projects under the European Economic Recovery Plan (EERP) : the Commission reviewed downwards the level of p/a necessary in 2011 for the financing of some energy projects under the EERP due to delays in payment schedules. The under-implementation amounts to EUR 357.1 million for Item 32 04 14 01 (Energy networks) and EUR 36 million for Item 32 04 14 03 (Carbon Capture and Storage). Taking into account two necessary reinforcements of Items 32 04 14 03 (European offshore wind grid system) and 32 04 14 04 (Energy efficiency and renewable initiatives) for an amount of EUR 41 million, the total expected under-implementation for energy projects under the EERP at year-end amounts to EUR 352 million in p/a available for redeployment.

Conclusion : on 12 September 2011, the Council adopted its position on draft amending budget No 4 of the European Union for the financial year 2011 as set out in the technical annex to the explanatory memorandum to this draft amending budget.

PURPOSE: presentation of the Draft Amending Budget (DAB) No 4 for the 2011 budget.

CONTENT: this DAB No 4 for the year 2011 covers the following:

a 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 2011, resulting in a change in the distribution between Member States of their own resources contributions to the EU budget;

a reinforcement of the Union's resources to manage migration and refugee flows , further to the recent developments in the Southern Mediterranean, in particular through additional appropriations for the Frontex agency, the External Borders Fund, the European Return Fund and the European Refugee Fund. The total net increase of appropriations requested for these purposes amounts to EUR 41.1 million in commitment appropriations and EUR 43.9 million in payment appropriations; a reduction of the level of payment appropriations for the Energy projects under the European Economic Recovery Plan (EERP), amounting to EUR 43.9 million. This concerns in particular the Energy networks, and is due to a revision of the payment schedules for some beneficiaries of infrastructure projects.

Strengthening EU resources for migration and refugee flows : the recent developments in the Southern Mediterranean have led to high migratory pressure in the region. In line with the European Council conclusions of March 2011, the proposed reinforcement of EU actions under the External Borders Fund, the European Return Fund and the European Refugee Fund will allow supporting the efforts of the Member States most directly concerned, as well as to strengthen the capacities of the Frontex agency to carry out maritime surveillance activities in the Mediterranean. The corresponding additional needs in commitment appropriations will be partially met by redeployment of commitment appropriations within Title 18 (Home Affairs), whereas the additional needs in payment appropriations will be fully met by redeployment of payment appropriations from Title 32 (Energy).

1. Frontex : a reinforcement of EUR 30 million is requested in commitment appropriations for the operational expenditure of Frontex (budget item 18 02 03 02). At this stage, a corresponding amount of EUR 24 million is requested in payment appropriations (i.e. equivalent to 80% of the additional commitments). The remaining EUR 6 million in payment appropriations will only be needed towards the end of 2011, as payment appropriations are disbursed by Frontex on the basis of requests for payments made by Member States;

2. Solidarity and Management of Migration Flows : the basic acts of the External Borders Fund, the European Return Fund and the European Refugee Fund all foresee a certain percentage of their overall financial envelopes for so-called 'Community actions', in order to finance transnational actions or actions of interest to the Community as a whole, in particular with a view to facing emergency situations which require urgent action. The extraordinary scale of the current events in the Southern Mediterranean entails a significant burden for the Member States concerned, which is the reason why the Commission proposes to raise the allocations for Community actions to the maximum foreseen in the respective basic acts, over and above the appropriations pre-allocated to Member States under shared management. This topping-up requires a reinforcement of appropriations for all three funds mentioned above, to be made available in particular to Italy, Greece, Malta and Cyprus.

The combined reinforcements requested for the External Borders Fund, the European Return Fund and the European Refugee Fund amount to EUR 22.2 million in commitment appropriations and EUR 19.9 million in payment appropriations.

The combined net financial impact of this amending budget is EUR 41.1 million in commitment appropriations and zero in payment appropriations .