PURPOSE: definitive adoption of amending budget No 6 of the European Union for the financial year 2013.

LEGISLATIVE ACT: Decision 2014/1/EU, Euratom.

CONTENT: the European Parliament definitively adopted the amending budget No 6 of the European

Union for the financial year 2013 in accordance with its resolution of 24 October 2013 (please see the summary of that resolution).

To recall, that Draft amending budget No 6/2013 updates the revenue part of the 2013 budget through a revision of the forecast of traditional own resources, VAT and GNI-based own resources, as well as the forecast of other revenue.

The net impact of this DAB for Member States would be a net increase in their national contributions for a total amount of EUR 2.7 billion.

It should be noted that Parliament stressed that this DAB is crucial to avoid cash shortages that could lead to an implementation deficit in 2013, on the basis of the level of payment appropriations authorised in the Budget 2013 including Amending Budgets.

The European Parliament adopted by 428 votes to 44 with 76 abstentions, a resolution approving the Council position on Draft amending budget No 6/2013 of the European Union for the financial year 2013, Section III – Commission.

Parliament recalled that that Draft amending budget No 6/2013, as amended on 18 September 2013 by the Commission by amending letter, concerned a revision in the level and distribution between Member States of their own resources contributions to the Union budget.

DAB No 6/2013 also covered the creation of the necessary budgetary structure to accommodate the creation of the Union trust funds foreseen in Article 187 of the Financial Regulation,

Parliament noted that the Council's position on DAB No 6/2013 did not modify the Commission's proposal, as amended. 

It also recalled that this DAB was crucial to avoid cash shortages that could lead to an implementation deficit in 2013, on the basis of the level of payment appropriations authorised in the Budget 2013 including Amending Budgets 1 to 5/2013 only.

Consequently, Parliament noted that the drop in TOR forecast, by some EUR 3 955 million, and in the VAT based own resource, by EUR 384 million, was compensated by the above-mentioned fines for a cumulated amount of EUR 1 229 million. It also noted that this automatically resulted in an increase in the complementary GNI based contributions from Member States, by an amount of EUR 3 110 million, i.e. a net increase in “national contributions” (including VAT) by EUR 2 736 million.

While acknowledging the significant burden that this would represent for national budgets, Parliament underlined that this technical adjustment on the revenue side should not come at the expense of fully covering justified payment needs, that had already been identified by the Commission in Draft amending budgets 8/2013 and 9/2013.

It reminded the Council of its position based on artificial under-budgeting of previous years and stressed, in this respect, that the accumulation of annual budgets for the period 2007-2013 reached a level that is by EUR 60 billion less than the agreed MFF overall payment ceiling for period 2007-2013, while a cumulated surplus of EUR 12 billion for the period 2007-2013 had de facto been returned to Members States by reducing their cumulated GNI contributions by this amount.

Parliament requested that the Commission provide the European Parliament with all information it has on when and how these increased national contributions would be transferred from Member States' treasuries to the Union budget. It also asked the Commission to provide Parliament with the net impact that these increased GNI contribution would have, if any, on the balance of Member States' budgets in 2013 or 2014.

Parliament approved the Council position on Draft amending budget No 6/2013.

In an oral amendment adopted in plenary, however, Parliament underlined that the adoption of Draft amending budget 6/2013 did not address the lack of payment appropriations authorised in the 2013 budget which were necessary to pay outstanding bills. It insisted once more on the need for the Council to adopt as a matter of urgency Draft amending budget 8/2013 and reiterated that Parliament would not give its consent to the MFF 2014-2020 Regulation as long as Draft amending budget 8/2013 had not been adopted.

On 10 July 2013, the Commission submitted to the Council draft amending budget (DAB) No 6/2013.

It proposed to update the revenue part of the 2013 budget through a revision of the forecast of traditional own resources, VAT and GNI-based own resources, as well as the forecast of other revenue.

On 20 September 2013, the Commission presented a letter of amendment (LA) to DAB No 6/2013 proposing further revisions of the proposed amounts.

The net impact of this DAB (including the LA) for Member States would be a net increase in their national contributions for a total amount of EUR 2.7 billion.

On 21 October 2013, the Council adopted its position on draft amending budget No 6/2013, as set out in the technical annex to the explanatory memorandum of the draft budget.

The Committee on Budgets adopted the report by Giovanni LA VIA (EPP, IT) on the Council position on Draft amending budget No 6/2013 of the European Union for the financial year 2013, Section III – Commission.

Members recall that that Draft amending budget No 6/2013, as amended on 18 September 2013 by the Commission by amending letter, concerns a revision in the level and distribution between Member States of their own resources contributions to the Union budget.

DAB No 6/2013 also covers the creation of the necessary budgetary structure to accommodate the creation of the Union trust funds foreseen in Article 187 of the Financial Regulation,

Members note that the Council's position on DAB No 6/2013 does not modify the Commission's proposal, as amended. 

They also recall that this DAB is crucial to avoid cash shortages that could lead to an implementation deficit in 2013, on the basis of the level of payment appropriations authorised in the Budget 2013 including Amending Budgets 1 to 5/2013 only.

Consequently, the committee notes that the drop in TOR forecast, by some EUR 3 955 million, and in the VAT based own resource, by EUR 384 million, is compensated by the above-mentioned fines for a cumulated amount of EUR 1 229 million. They also note that this automatically results in an increase in the complementary GNI based contributions from Member States, by an amount of EUR 3 110 million, i.e. a net increase in “national contributions” (including VAT) by EUR 2 736 million.

While acknowledging the significant burden that this will represent for national budgets, Members underline that this technical adjustment on the revenue side should not come at the expense of fully covering justified payment needs, that have already been identified by the Commission in Draft amending budgets 8/2013 and 9/2013.

They remind the Council of its position based on artificial under-budgeting of previous years and stress, in this respect, that the accumulation of annual budgets for the period 2007-2013 reaches a level that is by EUR 60 billion less than the agreed MFF overall payment ceiling for period 2007-2013, while a cumulated surplus of EUR 12 billion for the period 2007-2013 has de facto been returned to Members States by reducing their cumulated GNI contributions by this amount.

Members request that the Commission provide the European Parliament with all information it has on when and how these increased national contributions will be transferred from Member States' treasuries to the Union budget. They also ask the Commission to provide Parliament with the net impact that these increased GNI contribution will have, if any, on the balance of Member States' budgets in 2013 or 2014.

In all, Members call on Parliament to approve the Council position on Draft amending budget No 6/2013.

The European Parliament adopted by 428 votes to 44 with 76 abstentions, a resolution approving the Council position on Draft amending budget No 6/2013 of the European Union for the financial year 2013, Section III – Commission.

Parliament recalled that that Draft amending budget No 6/2013, as amended on 18 September 2013 by the Commission by amending letter, concerned a revision in the level and distribution between Member States of their own resources contributions to the Union budget.

DAB No 6/2013 also covered the creation of the necessary budgetary structure to accommodate the creation of the Union trust funds foreseen in Article 187 of the Financial Regulation,

Parliament noted that the Council's position on DAB No 6/2013 did not modify the Commission's proposal, as amended. 

It also recalled that this DAB was crucial to avoid cash shortages that could lead to an implementation deficit in 2013, on the basis of the level of payment appropriations authorised in the Budget 2013 including Amending Budgets 1 to 5/2013 only.

Consequently, Parliament noted that the drop in TOR forecast, by some EUR 3 955 million, and in the VAT based own resource, by EUR 384 million, was compensated by the above-mentioned fines for a cumulated amount of EUR 1 229 million. It also noted that this automatically resulted in an increase in the complementary GNI based contributions from Member States, by an amount of EUR 3 110 million, i.e. a net increase in “national contributions” (including VAT) by EUR 2 736 million.

While acknowledging the significant burden that this would represent for national budgets, Parliament underlined that this technical adjustment on the revenue side should not come at the expense of fully covering justified payment needs, that had already been identified by the Commission in Draft amending budgets 8/2013 and 9/2013.

It reminded the Council of its position based on artificial under-budgeting of previous years and stressed, in this respect, that the accumulation of annual budgets for the period 2007-2013 reached a level that is by EUR 60 billion less than the agreed MFF overall payment ceiling for period 2007-2013, while a cumulated surplus of EUR 12 billion for the period 2007-2013 had de facto been returned to Members States by reducing their cumulated GNI contributions by this amount.

Parliament requested that the Commission provide the European Parliament with all information it has on when and how these increased national contributions would be transferred from Member States' treasuries to the Union budget. It also asked the Commission to provide Parliament with the net impact that these increased GNI contribution would have, if any, on the balance of Member States' budgets in 2013 or 2014.

Parliament approved the Council position on Draft amending budget No 6/2013.

In an oral amendment adopted in plenary, however, Parliament underlined that the adoption of Draft amending budget 6/2013 did not address the lack of payment appropriations authorised in the 2013 budget which were necessary to pay outstanding bills. It insisted once more on the need for the Council to adopt as a matter of urgency Draft amending budget 8/2013 and reiterated that Parliament would not give its consent to the MFF 2014-2020 Regulation as long as Draft amending budget 8/2013 had not been adopted.

PURPOSE: to present an amending letter to draft budget N°6 for the year 2013 (DAB 6/2013).

CONTENT: this Amending Letter to Draft Amending Budget No 6 for the year 2013 (DAB 6/2013) concerns the further revision of the forecast of Traditional Own Resources (TOR, i.e. customs duties and sugar sector levies), as well as the further revision of the forecast of other revenue, arising from a series of fines that have become definitive and can therefore be budgeted.

Shortfall in traditional own resources (TOR): this Amending Letter proposes the budgeting of the updated amounts.

In the voted budget 2013, net customs duties (including duties on agricultural products) for the year 2013 were estimated at EUR 18 631.8 million. This amount was increased by EUR 22.4 million in Amending Budget No 1/2013 to take into account of the accession of Croatia on 1 July 2013. A second revision of customs duties was proposed by the Commission in DAB 6/2013 on the basis of more recent economic forecasts adopted at the meeting of the Advisory Committee on Own Resources (ACOR) on 16 May 2013.

The amount entered in DAB 6/2013 for net customs duties is EUR 16 761.3 million. However, taking into account the cashed amounts over the first 8 months of the year up to the end of August, and based on the remarkably stable seasonality pattern of customs duties, the Commission has now updated its estimate for net customs duties in 2013. The new estimate amounts to EUR 14 983.8 million.

This amount may however be revised due to other variables such as fines.

Net impact on GNI resources: the shortfall in Traditional Own Resources (EUR 2 062 million) is partly offset by the increase in interest and fines (EUR 668 million), resulting in a net increase of Member States’ GNI contributions of EUR 1 394 million.

The document proposes a table showing the distribution of this impact by Member State.

PURPOSE: to present an amending letter to draft budget N°6 for the year 2013 (DAB 6/2013).

CONTENT: this Amending Letter to Draft Amending Budget No 6 for the year 2013 (DAB 6/2013) concerns the further revision of the forecast of Traditional Own Resources (TOR, i.e. customs duties and sugar sector levies), as well as the further revision of the forecast of other revenue, arising from a series of fines that have become definitive and can therefore be budgeted.

Shortfall in traditional own resources (TOR): this Amending Letter proposes the budgeting of the updated amounts.

In the voted budget 2013, net customs duties (including duties on agricultural products) for the year 2013 were estimated at EUR 18 631.8 million. This amount was increased by EUR 22.4 million in Amending Budget No 1/2013 to take into account of the accession of Croatia on 1 July 2013. A second revision of customs duties was proposed by the Commission in DAB 6/2013 on the basis of more recent economic forecasts adopted at the meeting of the Advisory Committee on Own Resources (ACOR) on 16 May 2013.

The amount entered in DAB 6/2013 for net customs duties is EUR 16 761.3 million. However, taking into account the cashed amounts over the first 8 months of the year up to the end of August, and based on the remarkably stable seasonality pattern of customs duties, the Commission has now updated its estimate for net customs duties in 2013. The new estimate amounts to EUR 14 983.8 million.

This amount may however be revised due to other variables such as fines.

Net impact on GNI resources: the shortfall in Traditional Own Resources (EUR 2 062 million) is partly offset by the increase in interest and fines (EUR 668 million), resulting in a net increase of Member States’ GNI contributions of EUR 1 394 million.

The document proposes a table showing the distribution of this impact by Member State.

PURPOSE: to present an amending letter to draft budget N°6 for the year 2013 (DAB 6/2013).

CONTENT: this Amending Letter to Draft Amending Budget No 6 for the year 2013 (DAB 6/2013) concerns the further revision of the forecast of Traditional Own Resources (TOR, i.e. customs duties and sugar sector levies), as well as the further revision of the forecast of other revenue, arising from a series of fines that have become definitive and can therefore be budgeted.

Shortfall in traditional own resources (TOR): this Amending Letter proposes the budgeting of the updated amounts.

In the voted budget 2013, net customs duties (including duties on agricultural products) for the year 2013 were estimated at EUR 18 631.8 million. This amount was increased by EUR 22.4 million in Amending Budget No 1/2013 to take into account of the accession of Croatia on 1 July 2013. A second revision of customs duties was proposed by the Commission in DAB 6/2013 on the basis of more recent economic forecasts adopted at the meeting of the Advisory Committee on Own Resources (ACOR) on 16 May 2013.

The amount entered in DAB 6/2013 for net customs duties is EUR 16 761.3 million. However, taking into account the cashed amounts over the first 8 months of the year up to the end of August, and based on the remarkably stable seasonality pattern of customs duties, the Commission has now updated its estimate for net customs duties in 2013. The new estimate amounts to EUR 14 983.8 million.

This amount may however be revised due to other variables such as fines.

Net impact on GNI resources: the shortfall in Traditional Own Resources (EUR 2 062 million) is partly offset by the increase in interest and fines (EUR 668 million), resulting in a net increase of Member States’ GNI contributions of EUR 1 394 million.

The document proposes a table showing the distribution of this impact by Member State.

PURPOSE: presentation of the Draft Amending Budget No 6 to the 2013 budget.

CONTENT: Draft Amending Budget (DAB) No 6 for the year 2013 concerns 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 2013, resulting in a change in the distribution between Member States of their own resources contributions to the EU budget;
• a revision of the forecast of other revenue, arising from the fine of EUR 561 million imposed on Microsoft (Microsoft failed to comply with EU competition rules, acknowledged the fact and paid the fine without appeal);
• the creation of the necessary budgetary structure to accommodate the creation of the Union trust funds foreseen in Article 187 of the Financial regulation (this Article foresees that, for emergency, post-emergency or thematic actions, the Commission may create trust funds under an agreement concluded with other donors – these trust funds will be managed by the Commission and will be subject to EU supervision).

The impact of this DAB 6 on the revenue side of the budget (B2013 + DAB 1 to 5) is the following:

• Customs duties : - EUR 1 892 900 000
• Value added tax : - EUR 383 805 175
• Gross National income : + EUR 1 715 705 175
• Miscellaneous revenue (fines) : + EUR 561 000 000

Total : EUR 0.