52020DC0961

EXPLANATORY MEMORANDUM

1.Introduction

Draft Amending Budget (DAB) No 9 for the year 2020 accompanies the proposal 10 to mobilise the European Union Solidarity Fund (EUSF) for an amount of EUR 823 548 633 to provide assistance to:

§Croatia in relation to the earthquake that affected the city of Zagreb and the counties of Zagreb and Krapina-Zagorje in March 2020 (EUR 683 740 523),

§Poland in relation to the floods in Podkarpackie Voivodeship in June 2020 (EUR 7 071 280), and

§Seven Member States (Croatia, Germany, Greece, Hungary, Ireland, Portugal and Spain) in relation to advance payments in response to the major public health emergency caused by the COVID-19 pandemic in early 2020 (EUR 132 736 830).

DAB No 9/2020 proposes to enter EUR 734 596 756 in the general budget 2020, both in commitments and payments, after having deducted the advance already paid out to Croatia in the context of the earthquake (EUR 88 951 877).

2.Financing

In accordance with Article 10(1) of the Council Regulation (EU, EURATOM) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years 2014-2020 11 , the total amount available for the mobilisation of the EUSF at the beginning of 2020 was EUR 1 150 524 045, being the sum of the 2020 allocation of EUR 597 546 284, plus the 2019 allocation of EUR 552 977 761 that remained unspent and was carried over to 2020 (both in current prices).

As shown in the below table, taking into account the earlier Mobilisation Decision in 2020 12 , the amount that may be mobilised at this stage of the year 2020 is EUR 871 530 231.

Amount currently available under the Solidarity Fund:	Amount in EUR
Annual allocation of 2020	597 546 284
Plus unspent amount of 2019 allocation carried over to 2020	+552 977 761
[25% of 2020 allocation to be retained until 1 October 2020]	[149 386 571]
Minus total amount of aid proposed for PT (Hurricane Lorenzo), ES (extreme weather DANA 2019), IT (severe weather 2019) and AT (severe weather 2019)	-278 993 814
Amount available from January - September 2020	722 143 660
Maximum amount currently available	871 530 231
Total amount proposed to be mobilised for Croatia, Poland and Covid-19 advances	-823 548 633
Remaining availabilities until 31/12/2020	47 981 598

3.Appropriations requested in the budget of 2020

The Commission proposes to amend the budget 2020 by increasing budget line 13 06 01 by EUR 734 596 756 both in commitment and payment appropriations (see table below).

Amounts in EUR
Budget line	Name	Commitment appropriations	Payment appropriations
13 06 01	Assistance to Member States in the event of a major natural disaster with serious repercussions on living conditions, the natural environment or the economy	734 596 756	734 596 756
Total		734 596 756	734 596 756

4.Summary table by MFF heading

In EUR
Heading		Budget 2020		Draft Amending Budget 9/2020		Budget 2020
		(incl. AB 1-7/2020)				(incl. AB 1-7 & DAB 9/2020)
		CA	PA	CA	PA	CA	PA
1.	Smart and inclusive growth	83 930 597 837	77 453 828 442			83 930 597 837	77 453 828 442
Ceiling		83 661 000 000				83 661 000 000
Margin
1a	Competitiveness for growth and jobs	25 284 773 982	22 308 071 592			25 284 773 982	22 308 071 592
Of which under global margin for commitments		93 773 982				93 773 982
Ceiling		25 191 000 000				25 191 000 000
Margin
1b	Economic social and territorial cohesion	58 645 823 855	55 145 756 850			58 645 823 855	55 145 756 850
Of which under global margin for commitments		175 823 855				175 823 855
Ceiling		58 470 000 000				58 470 000 000
Margin
2.	Sustainable growth: natural resources	59 907 021 051	57 904 492 439			59 907 021 051	57 904 492 439
Ceiling		60 421 000 000				60 421 000 000
Of which offset against Contingency margin		- 465 323 871				- 465 323 871
Margin		48 655 078				48 655 078
Of which: European Agricultural Guarantee Fund (EAGF) — Market related expenditure and direct payments		43 410 105 687	43 380 031 798			43 410 105 687	43 380 031 798
Sub-ceiling		43 888 000 000				43 888 000 000
Rounding difference excluded from margin calculation		888 000				888 000
Of which offset against Contingency margin		- 428 351 235				- 428 351 235
EAGF Margin		48 655 078				48 655 078
3.	Security and citizenship	7 152 374 489	6 368 527 141			7 152 374 489	6 368 527 141
Of which under Flexibility Instrument		1 094 414 188				1 094 414 188
Of which under global margin for commitments		2 392 402 163				2 392 402 163
Of which under Contingency margin		714 558 138				714 558 138
Ceiling		2 951 000 000				2 951 000 000
Margin
4.	Global Europe	10 991 572 239	9 112 061 191			10 991 572 239	9 112 061 191
Of which under Contingency margin		481 572 239				481 572 239
Ceiling		10 510 000 000				10 510 000 000
Margin
5.	Administration	10 271 193 494	10 274 196 704			10 271 193 494	10 274 196 704
Ceiling		11 254 000 000				11 254 000 000
Of which offset against Contingency margin		- 982 806 506				- 982 806 506
Margin
Of which: Administrative expenditure of the institutions		7 955 303 132	7 958 306 342			7 955 303 132	7 958 306 342
Sub-ceiling		9 071 000 000				9 071 000 000
Of which offset against Contingency margin		- 982 806 506				- 982 806 506
Margin		132 890 362				132 890 362
Total		172 252 759 110	161 113 105 917			172 252 759 110	161 113 105 917
Of which under Flexibility Instrument		1 094 414 188	1 017 029 444			1 094 414 188	1 017 029 444
Of which under global margin for commitments		2 662 000 000				2 662 000 000
Of which under Contingency margin		1 196 130 377				1 196 130 377
Ceiling		168 797 000 000	172 420 000 000			168 797 000 000	172 420 000 000
Of which offset against Contingency margin		-1 448 130 377				-1 448 130 377
Margin		48 655 078	12 323 923 527			48 655 078	12 323 923 527
	Other special Instruments	860 261 208	690 998 208	734 596 756	734 596 756	1 594 857 964	1 425 594 964
Grand Total		173 113 020 318	161 804 104 125	734 596 756	734 596 756	173 847 617 074	162 538 700 881