PURPOSE: definitive adoption of amending budget No 7 of the European Union for the financial year 2013.

LEGISLATIVE ACT: Decision 2014/64/EU, Euratom.

CONTENT: the European Parliament definitively adopted amending budget No 7 of the European Union for the financial year 2013, in accordance with its resolution of 19 November 2013 (please see the summary of the resolution.)

To recall, this amending budget covers an increase of commitment appropriations of EUR 150 million in commitment appropriations under heading 1b of the multi-annual financial framework (MFF), with the aim of addressing specific situations relating to unemployment, in particular youth unemployment, and of poverty and social exclusion affecting France, Italy and Spain, and increasing the European Social Fund (ESF) benefiting these Member States.

The reinforcement of EUR 150 million in commitment appropriations will be covered by the margin under the expenditure ceiling of heading 1b (EUR 16 million), and by the mobilisation of the Flexibility Instrument (EUR 134 million) targeted at this specific action.

The European Parliament adopted by 577 votes to 27, with 86 abstentions, a resolution approving the position of the Council on the Draft Amending Budget No 7/2013 of the European Union for the fiscal year 2013, section III – Commission.

Parliament recalled that the Draft Amending Budget for the 2013 fiscal year covers an increase of commitment appropriations of EUR 150 million in heading 1b of the multi-annual financial framework (MFF) to address “some problems” affecting France, Spain and Italy resulting from the final outcome of the negotiations on the MFF for the 2014-2020 period.

Knowing that these additional funds should contibute to addressing the specific situations of unemployment, in particular youth unemployment, and of poverty and social exclusion in these Member States, the Commission considered that the most appropriate way to assist them is by increasing the European Social Fund (ESF).

The reinforcement of EUR 150 million in commitment appropriations will be covered by the margin under the expenditure ceiling of heading 1b (EUR 16 million), and by the mobilisation of the Flexibility Instrument (EUR 134 million) targeted at this specific action.

At the same time, Parliament approved the Commission proposal to reserve the additional funds to the ESF programmes underway in the Member States concerned and it looked to the Commission to report in due time to the European Parliament on the actions and measures financed by these funds . Furthermore, it also approved the Council position on the Draft Amending Budget No 7/2013.

The Committee on Budgets adopted the report by Giovanni LA VIA (EPP, IT) on the position of the Council on the Draft Amending Budget No 7/2013 of the European Union for the fiscal year 2013, section III – Commission.

Members recalled that the Draft Amending Budget for the 2013 fiscal year covers an increase of commitment appropriations of EUR 150 million in heading 1b of the multi-annual financial framework (MFF) to address “some problems” affecting France, Spain and Italy resulting from the final outcome of the negotiations on the MFF for the 2014-2020 period.

Knowing that these additional funds should contibute to addressing the specific situations of unemployment, in particular youth unemployment, and of poverty and social exclusion in these Member States, Members underlined that the Commission considers that the most appropriate way to assist them is by increasing the European Social Fund (ESF).

The reinforcement of EUR 150 million in commitment appropriations will be covered by the margin under the expenditure ceiling of heading 1b (EUR 16 million), and by the mobilisation of the Flexibility Instrument (EUR 134 million) targeted at this specific action.

Members therefore called on the European Parliament to approve the Commission proposal to reserve the additional funds to the ESF programmes underway in the Member States concerned. They looked to the Commission to report in due time to the European Parliament on the actions and measures financed by these funds. Furthermore, they called on the European Parliament to approve, unamended, the Council position on the Draft Amending Budget No 7/2013.

On 25 July 2013, the Commission submitted to the Council draft amending budget (DAB) No 7/2013 proposing to increase commitment appropriations under sub-heading 1b (Cohesion for growth and employment) by EUR 150 million in 2013 .

This amount aims at reinforcing appropriations for the European Social Fund in favour of France, Italy and Spain , in order to tackle youth unemployment, poverty and social exclusion, and has been agreed in the context of the MFF negotiations in the margin of the European Council of 27/28 June 2013.

In parallel, it submitted a proposal for a Decision of the European Parliament and of the Council on the mobilisation of the Flexibility Instrument for an amount of EUR 134 million.

On 7 October 2013, the Council adopted its position on draft amending budget No 7/2013, as set out in the technical annex to this explanatory memorandum, as well as the text of the Decision of the European Parliament and of the Council on the mobilisation of the Flexibility Instrument.

On 25 July 2013, the Commission submitted to the Council draft amending budget (DAB) No 7/2013 proposing to increase commitment appropriations under sub-heading 1b (Cohesion for growth and employment) by EUR 150 million in 2013 .

This amount aims at reinforcing appropriations for the European Social Fund in favour of France, Italy and Spain , in order to tackle youth unemployment, poverty and social exclusion, and has been agreed in the context of the MFF negotiations in the margin of the European Council of 27/28 June 2013.

In parallel, it submitted a proposal for a Decision of the European Parliament and of the Council on the mobilisation of the Flexibility Instrument for an amount of EUR 134 million.

On 7 October 2013, the Council adopted its position on draft amending budget No 7/2013, as set out in the technical annex to this explanatory memorandum, as well as the text of the Decision of the European Parliament and of the Council on the mobilisation of the Flexibility Instrument.

PURPOSE: to present Draft Amending Budget N° 7/2013.

CONTENT: Draft amending budget (DAB) No 7 for the year 2013 covers an increase of commitment appropriations of EUR 150 million in heading 1b of the multi-annual financial framework (MFF).

This is with the aim of addressing certain issues resulting from the final outcome of the negotiations of the MFF for the years 2014-2020, affecting France, Italy and Spain. The European Council of 27 and 28 June 2013 considered that a budgetary solution should be given to that matter.

In view of the current economic crisis and as a contribution to the special effort needed to address the specific situations of unemployment, in particular youth unemployment, and of poverty and social exclusion in these Member States, the Commission considers that the most appropriate way to assist them is by increasing the European Social Fund (ESF).

As the existing allocations have already been fully committed in the EU budget, the Commission proposes to increase the ESF allocations to those three Member States for the year 2013 .

The reinforcement of EUR 150 million in commitment appropriations will be covered by the margin under the expenditure ceiling of heading 1b (EUR 16 million), and by the mobilisation of the Flexibility Instrument (EUR 134 million) targeted at this specific action.