PURPOSE: to mobilise the Contingency Margin in 2017.

NON-LEGISLATIVE ACT: Decision (EU) 2018/09 of the European Parliament and of the Council amending Decision (EU) 2017/344 of the European Parliament and of the Council on the mobilisation of the Contingency Margin in 2017.

CONTENT: Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020 has established a Contingency Margin of up to 0.03 % of the Gross National Income of the Union.

The European Parliament and the Council mobilised the Contingency margin in 2017 to allow financing above the commitment ceilings of EUR 1 906 150 960, of which EUR 1 176 030 960 for heading 3 ( Security and citizenship ).

This Decision amends Decision EU 2017/344 of the European Parliament and of the Council on the mobilisation of the Contingency Margin in 2017 in order to adjust the offsetting profile to decrease the amount offset in Heading 5 in 2018 from EUR 570 million to EUR 318 million and correspondingly introduce offsetting of EUR 252 million in Heading 5 in 2020.

ENTRY INTO FORCE: 6.1.2018.

The European Parliament adopted by 515 votes to 91, with 34 abstentions, a resolution on the proposal for a decision of the European Parliament and of the Council amending Decision (EU) 2017/344 of the European Parliament and of the Council on the mobilisation of the contingency margin in 2017.

Parliament approved the decision annexed to the resolution amending Decision (EU) 2017/344 of the European Parliament and of the Council on the mobilisation of the contingency margin in 2017 in order to adjust the offsetting of the contingency margin in order to decrease by EUR 252 million the amount offset in Heading 5 (Administration) in 2018 and introduce a corresponding offset in Heading 5 in 2020.

In its resolution, Parliament regretted that some Member States focus excessively on the available margins below the MFF ceilings without taking into account the flexibility offered by the special instruments. They pointed out that even without a revised offsetting, the overall commitments margin in the agreed 2018 budget would already stand at EUR 1 348,3 million whereas more than EUR 900 million are still available under the Flexibility Instrument and the Global Margin for Commitments (GMC).

While noting that such a revision of the offsetting provides additional flexibility at an earlier stage under this MFF, Members regretted that the European Parliament and the Council are obliged to split the concerned offsetting under Heading 5 between 2018 and 2020 in order to provide the EU budget with the flexibility needed in 2018.

Concerned about the consequent reduction in the margin of Heading 5 that this manoeuvre will bring in 2020, Members pointed out that the adoption of such an off-limit approach is a clear signal that the EU budget is not provided with the necessary resources for carrying out the Union’s policies and programmes.

The Committee on Budgets adopted the report by Jens GEIER (S&D, DE) on the proposal for a decision of the European Parliament and of the Council amending Decision EU 2017/344 of the European Parliament and of the Council on the mobilisation of the contingency margin in 2017.

The committee called on Parliament to approve the decision annexed to the motion for a resolution.

Members took note of the Commission's proposal, in the context of the 2018 budget, to revise the offsetting of the contingency margin mobilised in 2017 in order to increase the overall commitments margin available in 2018.

As the 2018 budget requires more flexibility, it is proposed to adjust the offsetting of the contingency margin mobilised in 2017 to decrease the amount offset in Heading 5 (Administration) in 2018 and to introduce a corresponding offset in Heading 5 in 2020.

Members also stated that such a revision of the offsetting, while not essential, releases EUR 252 million of additional margin in 2018 instead of 2020, thereby providing additional flexibility at an earlier stage under this MFF.

However, they regretted that the European Parliament and the Council are obliged to split the concerned offsetting under Heading 5 between 2018 and 2020 in order to provide the EU budget with the flexibility needed in 2018.

They expressed concern over the consequent reduction in the margin of Heading 5 that this manoeuvre will bring in 2020.

PURPOSE: to mobilise the contingency margin in 2017.

PROPOSED ACT: Decision of the European Parliament and of the Council.

CONTENT: Article 13 of Council Regulation 1311/2013 laying down the multiannual financial framework for the years 2014-2020 has established a contingency margin of up to 0.03 % of the Gross National Income of the Union.

In accordance with Article 6 of this Regulation, the Commission had calculated the absolute amount of this contingency margin for 2017.

The European Parliament and the Council decided to mobilise the contingency margin in 2017 to address the needs stemming from the migration, refugee and security crisis, by increasing the commitment appropriations in the general budget of the EU for 2017 over and above the ceilings of Heading 3 (EUR 1 167 million) and Heading 4 (EUR 730 million).

Given the need to increase flexibility in the 2018 budget, the Commission proposes to amend Decision EU 2017/344 of the European Parliament and of the Council on the mobilisation of the contingency margin in 2017 to adjust the offsetting profile to decrease the amount offset in Heading 5 in 2018 from EUR 570 million to EUR 318 million and correspondingly introduce offsetting of EUR 252 million in Heading 5 in 2020.