PURPOSE: definitive adoption of amending budget No 1 of the European Union for the 2019 financial year: entry in the budget of the surplus for the 2018 financial year.

LEGISLATIVE ACT: Definitive adoption (EU, Euratom) 2018/1140 of amending budget No 1 of the European Union for the financial year 2018.

CONTENT: Parliament noted that amending budget No 1 of the European Union for the 2018 financial year had been definitively adopted.

The amending budget aims to enter in the 2019 budget the surplus for the 2018 financial year, which amounts to EUR 1 802 988 329.

The surplus consists mainly of (i) a positive revenue execution of EUR 1 274.59 million, (ii) an under-execution of expenditure of EUR 528.40 million (including EUR 120 million from the Emergency Aid Reserve).

The budgeting of the surplus reduces the overall contribution of Member States to the financing of the EU budget by the same amount.

The European Parliament adopted by 601 votes to 40, with 12 abstentions, a resolution approving the Council's position on draft amending budget No 1/2019 of the European Union for the financial year 2019: Entering the surplus of the financial year 2018.

Parliament took note of Draft amending budget (DAB) No 1/2019 as presented by the Commission, which is devoted solely to the budgeting of the 2018 surplus, for an amount of EUR 1 803 million. The main components of this surplus are:

- a positive revenue execution of EUR 1 274.6 million and

- an under-execution of expenditure of EUR 527.8 million.

On the revenue side, the largest difference stems from default interest and fines (EUR 1 312.6 million), the outturn being composed of competition fines and default interest, other penalty payments and interest linked to fines and penalty payments.

On the expenditure side, under-implementation in payments by the Commission reaches EUR 322.2 million for 2018 (of which 120 million from the Emergency Aid Reserve) and EUR 68 million for 2017 carryovers, and under-implementation by the other institutions EUR 75.9 million for 2018 and EUR 61.6 for 2017 carryovers.

Recalling that, according to the Commission, the competition fines in 2018 accounted for EUR 1 149 million, Members reiterated their view that, besides any surplus resulting from under-execution, the EU budget should be allowed to reuse any revenue from fines or late payments without reducing GNI contributions by a corresponding amount.

Parliament recalled its position in favour of increasing the proposed Union reserve in the next Multiannual Financial Framework by an amount equivalent to the revenue resulting from fines and penalties.

The Committee on Budgets adopted the report by John HOWARTH (S&D, UK) on the Council position on draft amending budget No 1/2019 of the European Union for the financial year 2019: Entering the surplus of the financial year 2018.

As a reminder, the Draft amending budget No 1/2019 aims to enter in the 2019 budget the surplus from the 2018 financial year.

The main components of that surplus are:

- a positive outturn on revenue of EUR 1 274.6 million and;

- an under-spending in expenditure of EUR 527.8 million.

On the revenue side, the largest difference stems from default interest and fines (EUR 1 312.6 million), the outturn being composed of competition fines and default interest, other penalty payments and interest linked to fines and penalty payments.

On the expenditure side, under-implementation in payments by the Commission reaches EUR 322.2 million for 2018 (of which 120 million from the Emergency Aid Reserve) and EUR 68 million for 2017 carryovers, and under-implementation by the other institutions EUR 75.9 million for 2018 and EUR 61.6 for 2017 carryovers.

Members took note of the Draft amending budget No 1/2019 as submitted by the Commission, which is devoted solely to the budgeting of the 2018 surplus, for an amount of EUR 1 803 million.

They noted that, according to the Commission, the competition fines in 2018 accounted for EUR 1 149 million and considered again that, besides any surplus resulting from under-implementation, the Union budget should be enabled to reuse any revenue resulting from fines or linked to late payments without a corresponding decrease in GNI contributions.

They recalled their position in favour of increasing the proposed Union reserve in the next Multiannual Financial Framework by an amount equivalent to the revenue resulting from fines and penalties.

The committee approved the Council position on Draft amending budget No 1/2019.

On 15 April 2019, the Commission submitted to the Council draft amending budget (DAB) No 1 to the general budget for 2019 concerning the budgeting of the surplus resulting from the implementation of the budget year 2018.

The implementation of the budget year 2018 shows a surplus of EUR 1 802 988 329 resulting from:

A) A positive outturn in the revenue part of the budget (+EUR 1 274.59 million) of which:

Title 1 (Own resources): -EUR 34.08 million; Title 3 (Surpluses, balances and adjustments): +EUR 25.71 million; Title 7 (Interest on late payments and fines): +EUR 1 312.64 million; Other titles -EUR 29.68 million.

B) An under-implementation on the expenditure side of the budget (-EUR 528.40 million), notably of:

appropriations authorised in the 2018 budget (Commission and other institutions): -EUR 398.14 million; cancellation of appropriations carried over from 2017 (Commission and other institutions): -EUR 129.70 million; exchange rate variations -EUR 0.56 million.

The budgeting of this surplus will diminish accordingly the global contribution of Member States to the financing of the EU budget in 2019.

On 3 September 2019, the Council adopted its position on DAB No 1 to the general budget for 2019 as set out in the technical annex to its explanatory memorandum.

On 15 April 2019, the Commission submitted to the Council draft amending budget (DAB) No 1 to the general budget for 2019 concerning the budgeting of the surplus resulting from the implementation of the budget year 2018.

The implementation of the budget year 2018 shows a surplus of EUR 1 802 988 329 resulting from:

A) A positive outturn in the revenue part of the budget (+EUR 1 274.59 million) of which:

Title 1 (Own resources): -EUR 34.08 million; Title 3 (Surpluses, balances and adjustments): +EUR 25.71 million; Title 7 (Interest on late payments and fines): +EUR 1 312.64 million; Other titles -EUR 29.68 million.

B) An under-implementation on the expenditure side of the budget (-EUR 528.40 million), notably of:

appropriations authorised in the 2018 budget (Commission and other institutions): -EUR 398.14 million; cancellation of appropriations carried over from 2017 (Commission and other institutions): -EUR 129.70 million; exchange rate variations -EUR 0.56 million.

The budgeting of this surplus will diminish accordingly the global contribution of Member States to the financing of the EU budget in 2019.

On 3 September 2019, the Council adopted its position on DAB No 1 to the general budget for 2019 as set out in the technical annex to its explanatory memorandum.

PURPOSE: to present Draft Amending Budget (DAB) No 1/2019 aimed at entering in the 2019 budget the surplus resulting from the implementation of the 2018 budget year.

CONTENT: the purpose of this PBR is to enter in the 2019 budget the surplus resulting from the implementation of the 2018 budget year.

As provided for in the Financial Regulation applicable to the general budget of the Union, the surplus is the only subject of this DAB and it has to be submitted within 15 days of the submission of the provisional accounts at the end of March 2019.

The implementation of the budget year 2018 shows a surplus of EUR 1 802 988 329, which is therefore entered as revenue in the 2019 budget.

Budgeting the surplus will diminish accordingly the total contribution of the 28 Member States to the financing of the 2019 budget. The contributions by Member States will also be influenced by the updated own resources forecast which will be available after the Advisory Committee on Own Resources meeting in May 2019 and included in a subsequent Draft Amending Budget.

The Commission implemented 99.8 % of the authorised payment appropriations. The amount not implemented was EUR 322 million, of which EUR 120 million of the Emergency Aid Reserve.

The under-implementation of the other institutions of EUR 76 million was lower than in the previous three years (EUR 83 million in 2017, EUR 103 million in 2016 and EUR 94 million in 2015).