PURPOSE: to amend Decision (EU) 2015/435 on the mobilisation of the Contingency Margin in order to react to unforeseen circumstances in 2014.

CONTENT: by Decision (EU) 2015/4355, the European Parliament and the Council mobilised the Contingency Margin in 2014 to allow the financing over and above the payment ceiling of EUR 3 168 233 715.

An amount of EUR 350 million in payment appropriations was included in the mobilisation of the Contingency Margin pending an agreement on the treatment of payments for special instruments.

It was decided to offset an amount of EUR 2 818 233 715 over the period 2018-2020 and to invite the Commission to present in a timely manner a proposal concerning the remaining amount of EUR 350 million.

Payment appropriations related to the use of the special instruments are entered in the budget over and above the relevant payment ceilings of the multiannual financial framework. As a consequence the mobilisation of the Contingency Margin in 2014 is only necessary for a total amount of EUR 2 818 233 715 in payment appropriations, with no need to include and offset the additional amount of EUR 350 million.

Pressure on payments from 2018-2020: according to the medium-term payment forecast presented in the context of the Mid-Term Review, pressure on the annual payment ceilings in the years 2018-2020 is to be expected.

The draft budget for the year 2017 shows a margin below the payment ceiling of EUR 9.6 billion, allowing for the offsetting of the full amount mobilised in 2014.

It is, therefore, proposed to amend Decision (EU) 2015/435 accordingly by offsetting the amount mobilised in 2014 against the margins available under the payment ceiling in 2017.

The Committee on Budgets adopted the joint report by Jan OLBRYCHT (EPP, PL) and Isabelle THOMAS (S&D, FR) on the proposal for a decision of the European Parliament and of the Council amending Decision (EU) 2015/435 on the mobilisation of the Contingency Margin.

Members recalled that in 2014, the European Parliament and the Council mobilised the contingency margin for an amount of EUR 3 168 233 715 in payment appropriations and that an amount of EUR 350 million was included in the mobilisation of the Contingency Margin pending an agreement on the treatment of payments for special instruments.

It was decided to offset EUR 2 818 233 715 over the period 2018-2020 and to invite the Commission to present in a timely manner a proposal concerning the remaining amount of EUR 350 million.

Members recalled that the budget for the year 2017 shows a margin below the payment ceiling of EUR 9.8 billion, allowing for the offsetting of the full amount mobilised in 2014.

They welcomed the Commission proposal presented as a part of the MFF mid-term review/revision package. They considered that the offsetting of a total amount of EUR 2 818 233 715 mobilised in 2014 against the margin under payment ceiling for the year 2017 will provide for more flexibility for the second part of the MFF and will help preventing a new payment crisis.

They equally welcomed the Council agreement in principle to the annexed decision which is in line with the interpretation of the Parliament and called on the Parliament to approve, without amendment, the decision annexed to this resolution to off-set EUR 2 818 233 715 mobilised in 2014 from the Contingency Margin, under the payment ceiling for the year 2017.

The European Parliament adopted by 470 votes to 166, with 66 abstentions, a resolution on the proposal for a decision of the European Parliament and of the Council amending Decision (EU) 2015/435 on the mobilisation of the Contingency Margin.

Parliament recalled that in 2014, the European Parliament and the Council mobilised the contingency margin for an amount of EUR 3 168 233 715 in payment appropriations and that an amount of EUR 350 million was included in the mobilisation of the Contingency Margin pending an agreement on the treatment of payments for special instruments.

It was decided to offset EUR 2 818 233 715 over the period 2018-2020 and to invite the Commission to present in a timely manner a proposal concerning the remaining amount of EUR 350 million.

Parliament recalled that the budget for the year 2017 shows a margin below the payment ceiling of EUR 9.8 billion, allowing for the offsetting of the full amount mobilised in 2014.

It welcomed the Commission proposal presented as a part of the MFF mid-term review/revision package. It considered that the offsetting of a total amount of EUR 2 818 233 715 mobilised in 2014 against the margin under payment ceiling for the year 2017 will provide for more flexibility for the second part of the MFF and will help preventing a new payment crisis.

It therefore approved, without amendment, the decision annexed to this resolution to off-set EUR 2 818 233 715 mobilised in 2014 from the Contingency Margin, under the payment ceiling for the year 2017 while recalling Parliament’s long standing position that payment appropriations for special instruments are counted over and above the MFF ceilings.

PURPOSE: to amend Decision (EU) 2015/435 on the mobilisation of the Contingency Margin in order to react to unforeseen circumstances in 2014.

CONTENT: by Decision (EU) 2015/4355, the European Parliament and the Council mobilised the Contingency Margin in 2014 to allow the financing over and above the payment ceiling of EUR 3 168 233 715.

An amount of EUR 350 million in payment appropriations was included in the mobilisation of the Contingency Margin pending an agreement on the treatment of payments for special instruments.

It was decided to offset an amount of EUR 2 818 233 715 over the period 2018-2020 and to invite the Commission to present in a timely manner a proposal concerning the remaining amount of EUR 350 million.

Payment appropriations related to the use of the special instruments are entered in the budget over and above the relevant payment ceilings of the multiannual financial framework. As a consequence the mobilisation of the Contingency Margin in 2014 is only necessary for a total amount of EUR 2 818 233 715 in payment appropriations, with no need to include and offset the additional amount of EUR 350 million.

Pressure on payments from 2018-2020: according to the medium-term payment forecast presented in the context of the Mid-Term Review, pressure on the annual payment ceilings in the years 2018-2020 is to be expected.

The draft budget for the year 2017 shows a margin below the payment ceiling of EUR 9.6 billion, allowing for the offsetting of the full amount mobilised in 2014.

It is, therefore, proposed to amend Decision (EU) 2015/435 accordingly by offsetting the amount mobilised in 2014 against the margins available under the payment ceiling in 2017.