PURPOSE: definitive adoption of amending budget 9/2013.

LEGISLATIVE ACT: 2014/66/EU, Euratom.

CONTENT: the European Parliament definitively adopted amending budget 9/2013 of the European Union, in accordance with its resolution of 20 December 2013 (please see the summary of the resolution.)

This amending budget covers the mobilisation of the EU Solidarity Fund for an amount of EUR 400.5 million in commitment and payment appropriations. The mobilisation is in favour of Romania, Germany, Austria and the Czech Republic in relation to natural disasters in 2012 and 2013.

The European Parliament adopted by 621 votes to 57, with 10 abstentions, a resolution approving the Council position on Draft amending budget No 9/2013 of the European Union for the financial year 2013, Section III – Commission.

Parliament recalled that Draft amending budget (DAB) No 9 for the year 2013 covers the mobilisation of the EU Solidarity Fund for an amount of EUR 400.5 million in commitment and payment appropriations, in favour of:

Romania in relation to the drought and forest fires in summer 2012, Germany, Austria and the Czech Republic in relation to flooding in May and June 2013.

The purpose of DAB No 9/2013 is to formally enter this budgetary adjustment into the 2013 budget.

Parliament took note of DAB No 9/2013, as submitted by the Commission and called on the Council to cease presenting its positions under Article 314(3) TFEU in the form of legal acts (“Decision”), since this is not in conformity with Article 314 TFEU. It recalled that a position under Article 314(3) TFEU is a preparatory act and is valid as from its date of adoption . It stressed that it would reject and ignore any clause by which the Council purports to make the validity of its position in a budgetary procedure conditional on the prior approval by the Parliament of a different budget, amending budget or legislative act.

Furthermore, Parliament deplored Council’s position on DAB No 9/2013, which amends the Commission’s proposal with a view to fully finance the mobilisation of the Fund through redeployments from budget lines for which under implementation is expected by the end of 2013, as identified by the Commission in its proposal for 2013 global transfer (DEC 26/2013).

On the other hand, it endorsed the agreement reached on 12 November 2013 in the framework of the Conciliation Committee ( 2013/2145(BUD ) with a view to financing this mobilisation up to a level of EUR 250.5 million in payment appropriations in 2013 through redeployments, and EUR 150 million in 2014 through fresh appropriations.

Members stressed, however, that they maintained their position of principle that the financing of special instruments , like the EU Solidarity Fund, should be entered in the budget over and above the MFF ceilings . They do not support Council's unilateral statement on payment appropriations annexed to the joint conclusions on Budget 2014.

Therefore, Parliament amended the Council’s position on DAB 9/2013 as follows:

- Increasing payment appropriations of the lines relating to:

SESAR Joint Undertaking and IMI; projects in the field of nanotechnology; climate change; nuclear activities of the Joint Research Centre; People initiative Ideas.

- Reducing payment appropriations of the following budget lines:

European Globalisation Fund; European Solidarity Fund; macro-financial assistance.

A series of specific expenses in the field of research were also reduced both in payment and commitment appropriations.

Overall, the draft amending budget 9/2013 proves to be neutral from a budgetary point of view regarding payment appropriations but has led to a reduction as regards commitment appropriations of approximately EUR 26 884 000 .

The Committee on Budgets adopted the report by Giovanni LA VIA (EPP, IT) on the Council position on Draft amending budget No 9/2013 of the European Union for the financial year 2013, Section III – Commission.

The report recalled that Draft amending budget (DAB) No 9 for the year 2013 covers the mobilisation of the EU Solidarity Fund for an amount of EUR 400.5 million in commitment and payment appropriations, in favour of:

Romania in relation to the drought and forest fires in summer 2012, Germany, Austria and the Czech Republic in relation to flooding in May and June 2013.

The purpose of DAB No 9/2013 is to formally enter this budgetary adjustment into the 2013 budget.

Members took note of DAB No 9/2013, as submitted by the Commission and called on the Council to cease presenting its positions under Article 314(3) TFEU in the form of legal acts (“Decision”), since this is not in conformity with Article 314 TFEU. They recalled that a position under Article 314(3) TFEU is a preparatory act and is valid as from its date of adoption .

They stressed that they would reject and ignore any clause by which the Council purports to make the validity of its position in a budgetary procedure conditional on the prior approval by the Parliament of a different budget, amending budget or legislative act.

Furthermore, they deplored Council’s position on DAB No 9/2013, which amends the Commission’s proposal with a view to fully finance the mobilisation of the Fund through redeployments from budget lines for which under implementation is expected by the end of 2013, as identified by the Commission in its proposal for 2013 global transfer (DEC 26/2013).

On the other hand, they endorsed the agreement reached on 12 November 2013 in the framework of the Conciliation Committee ( 2013/2145(BUD ) with a view to financing this mobilisation up to a level of EUR 250.5 million in payment appropriations in 2013 through redeployments, and EUR 150 million in 2014 through fresh appropriations.

Members stressed, however, that they maintained their position of principle that the financing of special instruments , like the EU Solidarity Fund, should be entered in the budget over and above the MFF ceilings . They do not support Council's unilateral statement on payment appropriations annexed to the joint conclusions on Budget 2014.

Therefore, Members called on the European Parliament to make a number of budgetary amendments to the Council’s position on DAB 9/2013 as follows:

- Increasing payment appropriations of the following budget lines:

SESAR Joint Undertaking and IMI; projects in the field of nanotechnology; climate change; nuclear activities of the Joint Research Centre; People initiative.

- Reducing payment appropriations of the following budget lines:

European Globalisation Fund; European Solidarity Fund; macro-financial assistance.

A series of specific expenses in the field of research were also reduced both in payment and commitment appropriations.

Overall, the draft amending budget 9/2013 proves to be neutral from a budgetary point of view regarding payment appropriations but has led to a reduction as regards commitment appropriations of approximately EUR 26 884 000.

On 3 October 2013, the Commission submitted to the Council draft amending budget (DAB) No 9/2013. It concerns the mobilisation of the EU Solidarity Fund (EUSF) for an amount of EUR 400.5 million in commitment and payment appropriations in order to provide financial assistance to Germany, Austria and the Czech Republic (floods in May and June 2013) and to Romania (drought and forest fires in summer 2012).

The Council accepted the mobilisation of the EUSF in commitment appropriations as proposed by the Commission. In order to be able to respect the global ceiling in payment appropriations, the Council decided to finance the requested payment appropriations by redeployments from the following budget lines:

Instrument for Pre-accession Assistance for Rural Development (IPARD): EUR -32 331 335;

Euratom - European Joint Undertaking for ITER - Fusion for Energy (F4E): EUR -289 200 000;

Instrument for Structural Policies for Pre-accession (ISPA) - Completion of other previous projects (2000 to 2006): EUR -78 987 754.

TOTAL: EUR -400 519 089 .

On 30 October 2013, the Council adopted its position on DAB No 9/2013 on the basis of the elements recorded above, as set out in the technical annex to this explanatory memorandum to this draft Council document.

On 3 October 2013, the Commission submitted to the Council draft amending budget (DAB) No 9/2013. It concerns the mobilisation of the EU Solidarity Fund (EUSF) for an amount of EUR 400.5 million in commitment and payment appropriations in order to provide financial assistance to Germany, Austria and the Czech Republic (floods in May and June 2013) and to Romania (drought and forest fires in summer 2012).

The Council accepted the mobilisation of the EUSF in commitment appropriations as proposed by the Commission. In order to be able to respect the global ceiling in payment appropriations, the Council decided to finance the requested payment appropriations by redeployments from the following budget lines:

Instrument for Pre-accession Assistance for Rural Development (IPARD): EUR -32 331 335;

Euratom - European Joint Undertaking for ITER - Fusion for Energy (F4E): EUR -289 200 000;

Instrument for Structural Policies for Pre-accession (ISPA) - Completion of other previous projects (2000 to 2006): EUR -78 987 754.

TOTAL: EUR -400 519 089 .

On 30 October 2013, the Council adopted its position on DAB No 9/2013 on the basis of the elements recorded above, as set out in the technical annex to this explanatory memorandum to this draft Council document.

PURPOSE: presentation of Draft Amending Budget (DAB) No 9 for the year 2013 to cover the mobilisation of the EU Solidarity Fund in favour of Romania, Germany, Austria and the Czech Republic affected by natural disasters in 2012 and 2013.

CONTENT: this Draft Amending Budget (DAB) No 9 for the year 2013 covers the mobilisation of the EU Solidarity Fund for an amount of EUR 400.5 million in commitment and payment appropriations. The mobilisation is in favour of Romania in relation to a drought and forest fires in summer 2012, and of Germany, Austria and the Czech Republic in relation to flooding in May and June 2013.

After thorough examination of the cases, the Commission considered that:

as regards Romania : the drought and wildfires may be considered to be a major disaster within the meaning of the Regulation and to meet the conditions set out by Article 2(2), first subparagraph, of Regulation 2012/2002 for mobilising the Solidarity Fund; as regards Germany, Austria and the Czech Republic : the flooding referred to in each application is considered to be a disaster in a neighbouring country within the meaning of the Regulation and to meet the conditions set out by Article 2(2), second subparagraph, of Regulation 2012/2002 for mobilising the Solidarity Fund.

Financing : the total annual budget available for the Solidarity Fund is EUR 1 000 million. As solidarity was the central justification for the creation of the Fund, the Commission takes the view that aid from the Fund should be progressive. That means that, according to previous practice, the portion of the damage exceeding the threshold (0.6% of the GNI or EUR 3 billion in 2002 prices, whichever is the lower amount) should give rise to higher aid intensity than damage up to the threshold. The rate applied in the past for defining the allocations for major disasters is 2.5 % of total direct damage under the threshold for mobilising the Fund and 6 % above.

It is proposed to mobilise the Solidarity Fund as follows:

Romania - drought: EUR 806 724 312 in approved direct damages: EU aid : EUR 2 475 689 Germany - flooding: EUR 8 153 500 000 in approved direct damages: EUR aid: EUR 360 453 575 Austria - flooding: EUR 866 462 000 in approved direct damages: EUR 21 661 550 Czech Republic - flooding: EUR 637 131 000 in approved direct damages: EUR aid 15 928 275 .

Total: EUR 400 519 089 .

In conclusion , it is proposed to accept the applications submitted by Romania relating to the drought disaster in 2012 and by Germany, Austria and the Czech Republic relating to the flooding disasters of May and June 2013 and to propose the mobilisation of the Solidarity Fund for each of these cases.