PURPOSE: definitive adoption of amending budget No 2/2020.

LEGISLATIVE ACT: Definitive adoption (EU, Euratom) 2020/537 of Amending budget No 2 of the European Union for the financial year 2020.

CONTENT: amending budget No 2/2020 shall provide EUR 3 billion in commitment appropriations and EUR 1.53 billion in payment appropriations under heading 3 Security and Citizenship to finance the provision of emergency support within the Union through the Emergency Support Instrument (ESI), which shall be re-activated to help tackle the consequences of the COVID-19 outbreak and to further reinforce the Union Civil Protection Mechanism/rescEU to allow wider stock-piling and coordination of essential resource distribution across Europe.

Actions to be financed through the ESI

Given the urgency of the situation and the serious nature of the COVID-19 outbreak, EUR 2.7 billion in commitment appropriations shall be used to fund the provision of emergency healthcare support such as the stockpiling and distribution of essential resources, the creation of temporary hospitals, and the cross-border transportation of patients.

The remaining EUR 300 million shall be used to increase capacities for stockpiling, coordinating and distributing essential medical supplies, such as protective gear and ventilators. Such measures shall be financed through the Union Civil Protection Mechanism/rescEU.

T9-0046/2020

T9-0046/2020

07251/2020

07251/2020

PURPOSE: to present draft amending budget No 2/2020 to the general budget concerning the provision of emergency support to Member States and further reinforcement of the Union Civil Protection Mechanism/rescEU to respond to the COVID-19 outbreak.

CONTENT: the main purpose of Draft Amending Budget (DAB) No 2 for the year 2020 is to provide EUR 3 000 million in commitment appropriations and EUR 1 530 million in payment appropriations under heading 3 Security and Citizenship to finance the provision of emergency support within the Union through the Emergency Support Instrument, which is proposed to be reactivated to help tackle the consequences of the COVID-19 outbreak and to further reinforce the Union Civil Protection Mechanism/rescEU to allow wider stock-piling and coordination of essential resource distribution across Europe.

Re- activation of the Emergency Support Instrument (ESI) within the EU

The Commission proposes in parallel to this DAB that the Council reactivates and amends Council Regulation 2016/369 on the provision of emergency support within the Union to equip the EU with a broader toolbox commensurate to the large scale of the current COVID-19 pandemic.

As a reminder, the ESI was created in March 2016 and was activated for a period of 3 years to address the emergency situation which had arisen following the massive influx of refugees in Greece. It was designed as a general purpose tool to fight crises within the EU and intervenes only in exceptional circumstances of severe difficulties. The measures foreseen under the Union Civil Protection Mechanism (UCPM -rescEU), the Coronavirus Response Investment Initiative to deploy European Structural and Investment Funds and other Union instruments are contributing to partly address the public health emergency.

In view of the above, support under the Emergency Support Regulation (No 2016/369) is proposed to be activated and provided with the necessary appropriations as soon as possible. This shall allow the Union to deploy measures preventing and mitigating severe consequences in one or more Member States and to address in a coordinated manner the needs related to the COVID-19 disaster, by complementing any assistance provided under other EU instruments.

Actions to be financed through the ESI

Given the urgency of the situation and the serious nature of the COVID-19 outbreak, the Commission proposes to provide EUR 2 700 million in commitment appropriations and EUR 1 380 million in payment appropriations to the ESI. The Commission shall ensure full coordination so that actions financed under the ESI complement other existing instruments such as rescEU or the Asylum, Migration and Integration Fund (AMIF) in certain areas (for instance in reception facilities for migrants). The deployment shall be adapted to the development of the outbreak and coordinated with measures undertaken by Member States to maximise impact.

Further reinforcement of the UCPM (within the EU)

In addition to the joint procurement and as a further safety net, the Commission has adopted a new Implementing Act under UPCM/rescEU in order to support Member States in purchasing some of the needed equipment (including medical equipment, Personal Protective Equipment, laboratory supplies). The rescEU direct grant shall provide 100 % financing from the EU budget. The equipment purchased shall be hosted by one or more Member States providing emergency supplies over and beyond the national stocks. It shall be available to all Member States and shall be used in case of insufficient national capacity.

As announced with the Draft Amending Budget No 1/2020 , the Commission redeployed EUR 10 million in commitment appropriations to support COVID-19 medical countermeasures and equipment from within the existing UCPM/rescEU budget for 2020 (prevention and preparedness within the Union) and proposed a reinforcement of EUR 70 million in commitment and EUR 40 million in payment appropriations.

In view of the rapid development of the crisis and the associated needs in the Member States, the scale of stock-piling efforts needs to be further reinforced. rescEU can contribute to wider stock-piling, coordination and distribution of essential medical supplies in high demand to hospitals, including protective gear for hospital staff (masks, goggles, overalls, nano-materials for medical use, disinfectants), ventilators (both invasive and non-invasive ventilators) needed for an effective response.

A further reinforcement of EUR 300 million in commitment and EUR 150 million in payment appropriations are therefore proposed. The reinforced rescEU and the re-activated ESI shall be complementary and ensure the most efficient provision of the needed medical equipment.

Financing

Given the absence of margins and room for redeployment under heading 3 of the multiannual financial framework (MFF), the Commission proposes to mobilise the following special instruments for the total amount of EUR 3 000 million:

the remaining Global Margin for Commitments for an amount of EUR 2 042.4 million. An amendment of the MFF Regulation removing the limitations in the scope of this instrument is proposed in parallel to this Amending budget; the Flexibility Instrument for an amount of EUR 243 million; and the Contingency Margin for the balance (EUR 714.6 million) with a corresponding offset against the margin available in 2020 under heading 5 (Administration).

COM(2020)0170
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