PURPOSE: adoption of a Draft Amending Budget (DAB) No. 5 to the 2017 budget.

NON-LEGISLATIVE ACT: Definitive Adoption (EU, Euratom) 2017/30 of amending budget No 5 of the European Union for the financial year 2017.

CONTENT: the European Parliament definitively adopted Draft Amending Budget No 5 for the financial year 2017 in accordance with its resolution of 24 October 2017 (see the summary of the resolution).

As a reminder, this Amending budget aims to provide funding for the European Sustainable Development Fund (EFSD) and to take into account, in the 2017 general budget, the outcome of the mid-term review of the Regulation (EU), Euratom) Council Regulation (EC) No 1311/2013 laying down the multiannual financial framework for the period 2014-2020 as regards the increase of the annual allocation of the Emergency Aid Reserve from EUR 280 million to EUR 300 million in 2011 prices.

Specifically, the ACB:

allocates EUR 275 million in commitment and payment appropriations to the EFSD , all of which comes from the mobilisation of the flexibility instrument; provides, at the same time, for the reduction by EUR 275 million of the payment appropriations within the Asylum, Migration and Integration Fund (AMIF) under heading 3 ( Security and Citizenship ); provides for an additional EUR 22.8 million (in current prices) for the EAR in commitment appropriations reflecting the mid-term revision of the MFF regulation.

Overall, this increases the amount of commitment appropriations by EUR 297.8 million , while the amount of payment appropriations remains unchanged.

The European Parliament adopted by 553 votes to 70, with 42 abstentions a resolution on the Council position on Draft amending budget No 5/2017 of the European Union for the financial year 2017 providing the financing for the European Fund for Sustainable Development (EFSD) and increasing the Emergency Aid Reserve (EAR) further to the revision of the Multiannual Financial Framework regulation.

Parliament approved the Council's position on draft amending budget No 5/2017 presented by the Commission to provide funding for the European Sustainable Development Fund (EFSD) and to reflect in the general budget 2017 the outcome of the mid-term revision of the MFF Regulation as regards the increase in the annual amount of the Emergency Aid Reserve (EAR) from EUR 280 million to EUR 300 million in 2011 prices.

This draft:

provides EUR 275 million in commitment and payment appropriations for the EFSD , to be covered in full by a mobilisation of the Flexibility instrument, given the absence of margin under the commitment ceiling of Heading 4 (Global Europe); provides at the same time for the reduction by the amount of EUR 275 million of the payment appropriations within the Asylum, Migration and Integration Fund (AMIF) under Heading 3 (Security and Citizenship), due to an expected under-implementation caused by a late adoption of the legal bases and delay in programming; provides for an additional EUR 22.8 million (in current prices) for the EAR in commitment appropriations reflecting the mid-term revision of the MFF regulation.

Draft amending budget No 5/2017 is accompanied by a proposal for a decision on the mobilisation of the Flexibility Instrument to provide the financing for the EFSD for an amount of EUR 275 million in commitment and payment appropriations in Heading 4.

Parliament welcomed the adoption and entry into force of the European Fund for Sustainable Development and called for its early implementation. It welcomed the fact that the mid-term revision of the Multiannual Financial Framework allows for the financing of the EFSD through an increased Flexibility Instrument, while also increasing the size of the EAR.

On the other hand, Members deplored the low implementation of the AMIF and the Internal Security Fund (ISF) by the Member States. They called on the Member States to respect their political agreements and to do their utmost within their competences to reflect the importance of this Union priority.

The Committee on Budgets adopted the report by Jens GEIER (S&D, DE) on the Council position on Draft amending budget No 5/2017 of the European Union for the financial year 2017 providing the financing for the European Fund for Sustainable Development (EFSD) and increasing the Emergency Aid Reserve (EAR) further to the revision of the Multiannual Financial Framework regulation (MFF).

The committee recommended that the European Parliament approve the Council’s position on draft amending budget No 5/2017. This draft:

provides EUR 275 million in commitment and payment appropriations for the EFSD , to be covered in full by a mobilisation of the Flexibility instrument, given the absence of margin under the commitment ceiling of Heading 4 (Global Europe); provides at the same time for the reduction by the amount of EUR 275 million of the payment appropriations within the Asylum, Migration and Integration Fund (AMIF) under Heading 3 (Security and Citizenship), due to an expected under-implementation caused by a late adoption of the legal bases and delay in programming; provides for an additional EUR 22.8 million (in current prices) for the EAR in commitment appropriations reflecting the mid-term revision of the MFF regulation.

Draft amending budget No 5/2017 is accompanied by a proposal for a decision on the mobilisation of the Flexibility Instrument to provide the financing for the EFSD for an amount of EUR 275 million in commitment and payment appropriations in Heading 4.

Members welcomed the adoption and entry into force of the European Fund for Sustainable Development and called for its early implementation. They welcomed the fact that the mid-term revision of the Multiannual Financial Framework allows for the financing of the EFSD through an increased Flexibility Instrument, while also increasing the size of the EAR.

On the other hand, Members deplored the low implementation of the AMIF and the Internal Security Fund (ISF) by the Member States. They called on the Member States to respect their political agreements and to do their utmost within their competences to reflect the importance of this Union priority.

On 28 July 2017, the Commission submitted to the Council draft amending budget (DAB) No 5 to the general budget for 2017 providing the financing of the European Fund for Sustainable Development (EFSD) , further to the adoption of the related legal base, as agreed by the European Parliament, the Council and the Commission in the outcome of the Conciliation Committee on the 2017 budgetary procedure.

The amount requested is EUR 275 million in commitment and payment appropriations.

This DAB also reflects the outcome of the mid-term revision of the MFF regulation1 as regards the increase of the annual amount of the Emergency Aid Reserve, from EUR 280 million to EUR 300 million in 2011 prices.

Overall, this DAB increases the level of commitment appropriations by EUR 297.8 million , whereas the level of payment appropriations remains unchanged.

On 10 October 2017, the Council adopted its position on DAB No 5 to the general budget for 2017 as set out in the technical annex to the explanatory memorandum of its position on the draft amending budget ( see Council document 12441/2017 ).

On 28 July 2017, the Commission submitted to the Council draft amending budget (DAB) No 5 to the general budget for 2017 providing the financing of the European Fund for Sustainable Development (EFSD) , further to the adoption of the related legal base, as agreed by the European Parliament, the Council and the Commission in the outcome of the Conciliation Committee on the 2017 budgetary procedure.

The amount requested is EUR 275 million in commitment and payment appropriations.

This DAB also reflects the outcome of the mid-term revision of the MFF regulation1 as regards the increase of the annual amount of the Emergency Aid Reserve, from EUR 280 million to EUR 300 million in 2011 prices.

Overall, this DAB increases the level of commitment appropriations by EUR 297.8 million , whereas the level of payment appropriations remains unchanged.

On 10 October 2017, the Council adopted its position on DAB No 5 to the general budget for 2017 as set out in the technical annex to the explanatory memorandum of its position on the draft amending budget ( see Council document 12441/2017 ).

PURPOSE: to present draft amending budget No 5 to the general budget 2017.

BACKGROUND: in publishing its communication on the establishment of a new partnership framework with third countries under the European Agenda on Migration , the Commission proposed a variety of measures to address the most urgent needs of refugees and to support host communities, while emphasising the need for a long term strategy to address the root causes of migration.

Following the endorsement of this proposal by the European Council and in response to its invitation, the Commission presented a communication towards the new European External Investment Plan (EIP) to boost investments in Africa and the Neighbourhood.

The EIP is based on three pillars: (i) the European Fund for Sustainable Development (EFSD), (ii) technical assistance and (iii) improving investment climate and overall policy environment. The EFSD constitutes the integrated financial package of the EIP , combining financing of blending facilities and an EFSD Guarantee (EUR 1 500 million), backed by an EFSD Guarantee Fund (EUR 750 million, of which EUR 350 million from the EU budget and EUR 400 million from the European Development Fund).

On 14 September 2016, the Commission submitted a proposal for a Regulation establishing the EFSD, the EFSD Guarantee and the EFSD Guarantee Fund.

CONTENT: the draft amending budget (DAB) presented by the Commission has two objectives:

1. To provide the financing from the general budget 2017 for the European Fund for Sustainable Development (EFSD) : further to the adoption of the final compromise on the draft EFSD Regulation between the European Parliament, the Council and the Commission, the adoption of the EFSD Regulation by the Council will follow in September 2017.

The Commission is therefore requesting in the present DAB the necessary appropriations in order to provide for the contribution from the general budget to the EFSD Guarantee Fund in 2017 ( EUR 275 million in commitment and payment appropriations ). The remaining contribution of EUR 75 million from the general budget to the Fund is to be provided in 2018–2020.

The Commission proposes to mobilise the flexibility instrument in order to cover in full the increase in commitment and payment appropriations requested for the financing of the EFSD. This DAB is accompanied by the proposal for the mobilisation of the Flexibility Instrument.

2. To reflect in the general budget 2017 the outcome of the mid-term revision of the MFF regulation 2014-2020 as regards the increase of the annual amount of the Emergency Aid Reserve (EAR), from EUR 280 million to EUR 300 million in 2011 prices.

It is thus necessary to reflect this increase in the general budget 2017 by adding EUR 22.8 million (in current princes) to the EAR in commitment appropriations. As regards payment appropriations, the Commission considers that the amount available in the general budget 2017 (EUR 315 million) will suffice to meet its estimated needs.

Overall, this DAB increases the level of commitment appropriations by EUR 297.8 million whereas the level of payment appropriations remains unchanged.