52013DC0156

DRAFT AMENDING BUDGET N° 1 TO THE GENERAL BUDGET 2013

GENERAL STATEMENT OF REVENUE STATEMENT OF EXPENDITURE BY SECTION Section III – Commission

Having regard to:

– the Treaty on the Functioning of the European Union, and in particular Article 314 thereof, in conjunction with the Treaty establishing the European Atomic Energy Community, and in particular Article 106a thereof,

– the Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the Financial Regulation applicable to the general budget of the Union[1], and in particular Article 41 thereof,

– the general budget of the European Union for the financial year 2013 adopted on 12 December 2012[2],

The European Commission hereby presents to the budgetary authority the Draft Amending Budget No 1 to the 2013 budget.

CHANGES TO THE STATEMENT OF REVENUE AND EXPENDITURE BY SECTION

The changes to the statement of revenue and expenditure by section are available on EUR-Lex (http://eur-lex.europa.eu/budget/www/index-en.htm). An English version of the changes to this statement is attached for information as a budgetary annex.

TABLE OF CONTENTS

1.      Introduction.. 5

2.      Adjustments by Heading.. 6

2.1.        Heading 1a Competiveness for Growth and Employment.. 6

2.2.        Heading 1b Cohesion for Growth and Employment.. 7

2.3.        Heading 2 Preservation and Management of Natural Resources. 7

2.4.        Heading 3a Freedom, Security and Justice. 8

2.5.        Heading 3b Citizenship. 8

2.6.        Heading 4 EU as a Global Player.. 9

2.7.        Heading 6 Compensation.. 9

5.      Summary table by heading of the Financial Framework.. 10

1.           Introduction

Draft Amending Budget (DAB) No 1 for the year 2013 concerns the incorporation into the 2013 Budget of both the commitment and payment appropriations necessary to cover expenditure related to the accession of the Republic of Croatia (hereafter Croatia) to the European Union on 1 July 2013, in full respect of the Treaty concerning the accession of the Republic of Croatia[3] (hereafter Treaty of Accession). In parallel with this exercise, the Commission is presenting a proposal for the revision of the multi-annual financial framework 2007-2013[4], in order to accommodate these changes, as foreseen under point 29 of the Interinstitutional Agreement on budgetary discipline and sound financial management.

The increases proposed in DAB No 1 are EUR 655,1 million in commitment appropriations and EUR 374,0 million in payment appropriations. This reflects the financial package agreed at the Accession Conference of 30 June 2011, but excludes heading 5, in line with the Commission's restricted approach on administrative expenditure, and since the needs related to accession are already included in the 2013 budget.

 (in million EUR, at current prices)

DAB 1/2013 || 2013

Commitments || Payments

1. Sustainable growth || 496,6 || 167,4

1a Competitiveness for growth and employment (1) || 47,2 || 17,6

1b Cohesion for growth and employment || 449,4 || 149,8

of which Structural Funds || 299,6 || 89,9

of which Cohesion Fund || 149,8 || 59,9

2. Preservation and management of natural resources || 10,2 || 2,6

|| ||

European Fisheries Fund || 8,7 || 2,2

Other CFP support, Life + (1) || 1,5 || 0,4

3. Citizenship, freedom, security and justice || 73,3 || 42,2

3a Freedom, security and justice (1) || 2.1 || 1,1

Schengen facility || 40,0 || 40,0

3b Citizenship (1) || 2,2 || 1,1

Transition Facility || 29,0 ||

4. EU as a global player || || 86,8

6. Compensations (Cash-flow facility) || 75,0 || 75,0

Total || 655,1 || 374,0

1) Non pre-allocated expenditure given for illustrative purposes only.

The Treaty of Accession defines pre-allocated amounts for the Transition Facility, the Schengen Facility, the Cash-Flow Facility, the Structural Funds, the Cohesion Fund and the European Fisheries Fund. The indicative amounts for non pre-allocated expenditure were presented in the EU common position on Chapter 33 (Financial and Budgetary provisions)[5].

The allocation of both the commitment and payment appropriations on the budget lines has been made according to the repartition proposed by the Treaty of Accession, while taking also into account the possibility to properly implement the additional funding before the end of the year.

2.           Adjustments by Heading of the Financial Framework

2.1.        Heading 1a - Competiveness for Growth and Employment

Budget Line || Heading || Commitments (EUR) || Payments (EUR)

02 04 01 03 || Research related to transport (Galileo) || 3 327 535 || 998 000

08 02 01 || Cooperation — Health || 3 527 530 || 1 058 000

08 03 01 || Cooperation — Food, agriculture and fisheries, and biotechnology || 1 601 419 || 480 000

08 04 01 || Cooperation — Nanosciences, nanotechnologies, materials and new production technologies || 2 702 062 || 810 000

08 05 01 || Cooperation — Energy || 893 047 || 267 000

08 06 01 || Cooperation — Environment (including climate change) || 1 484 726 || 445 000

08 07 01 || Cooperation — Transport (including aeronautics) || 1 381 746 || 414 000

08 08 01 || Cooperation — Socioeconomic sciences and the humanities || 496 988 || 149 000

08 10 01 || Ideas || 7 563 109 || 2 268 000

08 12 01 || Capacities — Research infrastructures || 330 775 || 99 000

08 13 01 || Capacities — Research for the benefit of small and medium-sized enterprises (SMEs) || 1 210 455 || 363 000

08 14 01 || Capacities — Regions of knowledge || 120 639 || 36 000

08 15 01 || Capacities — Research potential || 327 567 || 98 000

08 16 01 || Capacities — Science in society || 280 771 || 84 000

08 17 01 || Capacities — International cooperation activities || 175 805 || 52 000

08 18 01 || Capacities — Risk-sharing finance facility (RSFF) || 221 512 || 66 000

08 19 01 || Capacities — Support for coherent development of research policies || 59 414 || 17 000

08 20 01 || Euratom — Fusion energy || 318 290 || 95 000

08 21 01 || Euratom — Nuclear fission and radiation protection || 247 380 || 74 000

09 04 01 01 || Support for research cooperation in the area of information and communication technologies (ICTs — Cooperation) || 5 931 335 || 1 779 000

10 02 01 || Non-nuclear activities of the Joint Research Centre (JRC) || 191 156 || 57 000

15 02 22 || Lifelong learning programme  || 9 750 000 || 6 389 000

15 07 77 || People || 4 250 000 || 1 275 000

32 06 01 || Research related to energy || 757 030 || 227 000

Total || 47 150 291 || 17 600 000

With respect to the Seventh Framework Programme for Research (FP7), in which Croatia has already participated as a Candidate Country, the additional commitment appropriations (EUR 37,4 million) will be allocated proportionally to the activities and actions foreseen in the annual 2013 FP7 Work programmes. This will result in the FP7 Cooperation specific programme benefiting by around EUR 22 million which will be distributed across all the research themes of this programme. Some EUR 2,7 million will be allocated to the FP7 Capacities specific programme, EUR 7,6 million goes to the Ideas specific programme and around EUR 4,3 million is for the People specific programme. The FP7 EURATOM indirect actions activities also will benefit by EUR 0,6 million. The rest (EUR 0,2 million) will be allocated to the FP7 EC direct actions.

The additional payment appropriations (EUR 11,2 million) will be used for paying the pre-financing of the respective commitments.

The additional appropriations for Lifelong Learning (EUR 9,8 million in commitments and EUR 6,4 million in payments) will be used to finance the participation of Croatia in actions in decentralised management, notably those promoting mobility – Comenius, Erasmus, Leonardo da Vinci and Grundtvig, as well as those in centralised management, such as multi-lateral projects and networks, as well as studies and conferences.

The total level of commitment appropriations requested (EUR 47,2 million) is very slightly lower than the EUR 47,4 million indicative amount in the financial package, but reflects what can be implemented.

2.2.        Heading 1b - Cohesion for Growth and Employment

Budget Line || Heading || Commitments (EUR) || Payments (EUR)

04 02 17 || European Social Fund (ESF) — Convergence || 60 000 000 || 18 000 000

13 03 16 || European Regional Development Fund (ERDF) — Convergence || 228 400 000 || 68 520 000

13 03 19 || European Regional Development Fund (ERDF) — European territorial cooperation || 11 200 000 || 3 360 000

13 04 02 || Cohesion Fund || 149 800 000 || 59 920 000

Total || 449 400 000 || 149 800 000

Article 33(1) in the Treaty of Accession foresees that an amount of EUR 449,4 million in commitment appropriations shall be allocated to Croatia under the Structural and Cohesion Funds in 2013 with one third of this amount (i.e. EUR 149,8 million) reserved for the Cohesion Fund according to Article 33(2). The provisional split between the European Regional Development Fund (ERDF) and the European Social Fund (ESF) will be adjusted at a later stage, if necessary, in line with the actual requests by the Croatian authorities.

As regards payment appropriations, Annex III to the Treaty of Accession provides in point 7.1(v) that pre-financing shall be paid in a single instalment and will represent 30 % of the contribution from the Structural Funds and 40 % of the contribution from the Cohesion Fund, corresponding to a total amount of EUR 149,8 million.

2.3.        Heading 2 - Preservation and Management of Natural Resources

Budget Line || Heading || Commitments (EUR) || Payments (EUR)

11 06 12 || European Fisheries Fund (EFF) — Convergence objective || 8 700 000 || 2 175 000

11 07 01 || Support for the management of fishery resources (collection of basic data) || 750 000 || 375 000

11 08 01 || Financial contribution to the Member States for expenses in the field of control || 750 000 || 37 500

Total || 10 200 000 || 2 587 500

For heading 2 of the multiannual financial framework (MFF) 2007-2013, the Commission proposes to increase commitment appropriations by EUR 10,2 million and payment appropriations by EUR 2,6 million. This level of commitments and payments is lower than the indicative amount in the financial package agreed at the Accession Conference of 30 June 2011, but reflects the realistic amount that can be implemented in the second half of 2013.

Regarding the Common Agricultural Policy (CAP), it is expected that the Accession on 1 July 2013 has no overall impact on the needs for market related expenditure as already foreseen in the Budget 2013. The reimbursement of direct payments granted to farmers for the year 2013 in Croatia has no impact on the EU Budget 2013 and will be financed from the EU Budget for the year 2014. This is fully in line with the normal calendar for the reimbursement of direct payments. Furthermore, according to Article 35 of the Treaty of Accession, support for rural development in 2013 will not be made under the European Agricultural Fund for Rural Development (EAFRD), but under the Rural Development Component referred to in Article 12 of the IPA Regulation (Council Regulation (EC) No 1085/2006).

For the European Fisheries Fund (EFF), the additional appropriations requested are intended to cover the operational programmes of the convergence objective for the year 2013, according to the provisions of Council Regulation (EC) No 1198/2006[6]. The amounts for commitment (EUR 8,7 million) and payment appropriations (25 % pre-financing of EUR 8,7 million) for 2013 are set out in Article 34 of the Treaty of Accession.

For other actions in the field of Maritime Affairs and Fisheries, a total amount of EUR 1,5 million in commitment appropriations and EUR 0,4 million in payment appropriations is requested to cover the inclusion of Croatia into the programmes for data collection, control and enforcement of the Common Fisheries Policy (CFP) financed from budget articles 11 07 01 and 11 08 01. The level of payment appropriations requested reflects the reduced pre-financing usually made in the first year of control measures and the 50 % advance made on data collection measures.

2.4.        Heading 3a - Freedom, Security and Justice

Budget Line || Heading || Commitments (EUR) || Payments (EUR)

18 02 12 || Schengen Facility for Croatia || 40 000 000 || 40 000 000

18 03 04 || Emergency measures in the event of mass influxes of refugees || 2 100 000 || 1 100 000

Total || 42 100 000 || 41 100 000

The Schengen Facility is a temporary instrument to help Croatia between the date of accession and the end of 2014 to finance actions at the new external borders of the Union for the implementation of the Schengen acquis and external border control. The amount of EUR 40 million in commitment and payment appropriations foreseen derives directly from article 31(2) of the Treaty of Accession.

A further EUR 2,1 million in commitment appropriations and EUR 1,1 million in payment appropriations is proposed on budget article 18 03 04 'Emergency measures in the event of mass influxes of refugees'. These appropriations will increase the capacity of the Union to support Members States concerned by a sudden mass influx of refugees or displaced persons. These emergency measures are based on the solidarity between the Member States. Due to its geographical position, Croatia could be amongst the beneficiaries of these emergency measures.

2.5.        Heading 3b - Citizenship

Budget Line || Heading || Commitments (EUR) || Payments (EUR)

15 05 55 || Youth in Action || 2 200 000 || 1 100 000

22 02 11 || Transition facility for institution-building after accession || 29 000 000 || 0

Total || 31 200 000 || 1 100 000

The Youth in Action programme finances actions, such as mobility, exchanges and participation in the European Voluntary Service, and is managed primarily in a decentralised way through national agencies. In accordance with the decision establishing the programme, the allocations to each Member State agency are made on the basis of objective criteria, such as population. This additional allocation will allow Croatia to fully participate in the programme, based on these objective criteria without reducing the allocations to the other Member States.

In accordance with article 30 of the Treaty of Accession a ‘Transition Facility’ will be provided for the first year after accession to assist Croatia in developing and strengthening its administrative and judicial capacity to implement and enforce Union law and to foster the exchange of best practice among peers. This assistance shall fund institution-building projects and limited small-scale investments connected to this. It is proposed to budget EUR 29 million in commitment appropriations as foreseen in article 30(4).

2.6.        Heading 4 - EU as a Global Player

Budget Line || Heading || Payments (EUR)

05 05 02 || Instrument for Pre-accession Assistance for Rural Development (IPARD) || 27 700 000

22 02 01 || Transition and institution-building assistance to candidate countries || 59 112 500

Total || 86 812 500

The total commitments outstanding for Croatia under the Instrument for Pre-Accession Assistance (IPA) amounted to EUR 220 million under the IPA-components 'Transition Assistance and Institution Building' and 'Rural development'. The payment claims to be received in 2013 will exceed the availabilities in the 2013 budget (as these 2 lines have been reduced by EUR 63,6 million and EUR 60,6 million respectively in the budgetary procedure), and so it is proposed to reinforce these two IPA-components by EUR 86,8 million in payment appropriations. This is especially important as the Treaty of Accession, in its art 35 1), specify that the amounts of the rural development for Croatia stay in Heading 4 even after the accession.

This is slightly higher than the indicative figure of EUR 77,6 million in payment appropriations originally envisaged in the financial package agreed at the Accession Conference of 30 June 2011. The additional EUR 9,2 million is offset by the lower request under heading 2, as mentioned under section 2.3 above.

2.7.        Heading 6 - Compensation

Budget Line || Heading || Commitments (EUR) || Payments (EUR)

27 02 02 || Temporary and lump-sum compensation for new Member States || 75 000 000 || 75 000 000

Total || 75 000 000 || 75 000 000

The Cash-flow Facility is a temporary instrument to help Croatia between the date of accession and the end of 2014 to improve cash-flow in the national budget. The amount of EUR 75 million in both commitment and payment appropriations should be included in the 2013 Budget, in accordance with article 32(2) of the Treaty of Accession.

5.           Summary table by heading of the Financial Framework

Financial framework Heading/subheading || Revised 2013 Financial framework || Budget 2013 || DAB 1/2013 || Budget 2013 (incl. DAB 1/2013)

CA || PA || CA || PA || CA || PA || CA || PA

1. SUSTAINABLE GROWTH || || || || || || || ||

1a. Competitiveness for growth and employment || 15 670 000 000 || || 16 121 000 000 || 11 886 427 361 || 47 150 291 || 17 600 000 || 16 168 150 291 || 11 904 027 361

Margin || || || 49 000 000 || || || || 1 849 709 ||

1b. Cohesion for growth and employment || 54 974 000 000 || || 54 508 649 037 || 47 198 594 736 || 449 400 000 || 149 800 000 || 54 958 049 037 || 47 348 394 736

Margin || || || 465 350 963 || || || || 15 950 963 ||

Total || 70 644 000 000 || || 70 629 649 037 || 59 085 022 097 || 496 550 291 || 167 400 000 || 71 126 199 328 || 59 252 422 097

Margin[7] || || || 514 350 963 || || || || 17 800 672 ||

2. PRESERVATION AND MANAGEMENT OF NATURAL RESOURCES || || || || || || || ||

Of which market related expenditure and direct payments || 48 583 000 000 || || 43 956 548 610 || 43 934 188 711 || || || 43 956 548 610 || 43 934 188 711

Total || 61 310 000 000 || || 60 149 041 416 || 57 484 414 991 || 10 200 000 || 2 587 500 || 60 159 241 416 || 57 487 002 491

Margin || || || 1 160 958 584 || || || || 1 150 758 584 ||

3. CITIZENSHIP, FREEDOM, SECURITY AND JUSTICE || || || || || || || ||

3a. Freedom, Security and Justice || 1 703 000 000 || || 1 398 727 200 || 876 583 652 || 42 100 000 || 41 100 000 || 1 440 827 200 || 917 683 652

Margin || || || 304 272 800 || || || || 262 172 800 ||

3b. Citizenship || 746 000 000 || || 707 164 000 || 637 999 615 || 31 200 000 || 1 100 000 || 738 364 000 || 639 099 615

Margin || || || 38 836 000 || || || || 7 636 000 ||

Total || 2 449 000 000 || || 2 105 891 200 || 1 514 583 267 || 73 300 000 || 42 200 000 || 2 179 191 200 || 1 556 783 267

Margin[8] || || || 343 108 800 || || || || 269 808 800 ||

4. EU AS A GLOBAL PLAYER || 9 595 000 000 || || 9 583 118 711 || 6 322 601 760 || || 86 812 500 || 9 583 118 711 || 6 409 414 260

Margin[9] || || || 275 996 289 || || || || 275 996 289 ||

5. ADMINISTRATION || 9 095 000 000 || || 8 430 690 740 || 8 430 365 740 || || || 8 430 690 740 || 8 430 365 740

Margin[10] || || || 750 309 260 || || || || 750 309 260 ||

6.COMPENSATION || 75 000 000 || || p.m. || p.m. || 75 000 000 || 75 000 000 || 75 000 000 || 75 000 000

Margin || || || 75 000 000 || || || || ||

TOTAL || 153 168 000 000 || 144 285 000 000 || 150 898 391 104 || 132 836 987 855 || 655 050 291 || 374 000 000 || 151 553 441 395 || 133 210 987 855

Margin [11][12] || || || 3 119 723 896 || 11 614 012 145 || || || 2 464 673 605 || 11 240 012 145

Annex : Financial package agreed at the Accession Conference of 30 June 2011

(in million EUR, at current prices)

Croatia financial package (EUCP), accession on 1 July 2013 || 2013

Commitments || Payments

1. Sustainable growth || 496,8 || 167,4

1a Competitiveness for growth and employment (1) || 47,4 || 17,6

1b Cohesion for growth and employment || 449,4 || 149,8

of which Structural Funds || 299,6 || 89,9

of which Cohesion Fund || 149,8 || 59,9

2. Preservation and management of natural resources || 20,4 || 12,1

market related expenditure (1) || 9,0 || 9,0

direct payments || ||

demining reserve || ||

rural development || ||

European Fisheries Fund || 8,7 || 2,2

Other CFP support, Life + (1) || 2,7 || 0,9

3. Citizenship, freedom, security and justice || 73,3 || 42,2

3a Freedom, security and justice (1) || 2,1 || 1,1

Schengen facility || 40,0 || 40,0

3b Citizenship (1) || 2,2 || 1,1

Transition Facility || 29,0 ||

4. EU as a global player || || 77,6

5. Administration || 22,0 || 22,0

6. Compensations (Cash-flow facility) || 75,0 || 75,0

Total || 687,5 || 396,3

(1) Non pre-allocated expenditure given for illustrative purposes only.

[1]               OJ L 298, 26.10.2012, p. 1.

[2]               OJ L 66, 8.3.2013, p. 1.

[3]               OJ L 112, 24.4.2012, p. 1;

[4]               COM(2013) 157.

[5]               Conference on Accession to the European Union – Croatia, Accession Document No 30/11 (CONF-HR 17/11) of 29.6.2011.

[6]               OJ L 223, 15.8.2006, p. 1.

[7]               The European Globalisation adjustment Fund (EGF) is not included in the calculation of the margin under Heading 1a (EUR 500 million).

[8]               The European Union Solidarity Fund (EUSF) amount is entered over and above the relevant headings as foreseen by the IIA of 17 May 2006 (OJ C 139 of 14.6.2006)

[9]               The 2013 margin for heading 4 does not take into account the appropriations related to the Emergency Aid Reserve (EUR 264,1 million).

[10]             For calculating the margin under the ceiling for heading 5, account is taken of the footnote (1) of the financial framework 2007-2013 for an amount of EUR 86 million for the staff contributions to the pension scheme.

[11]             The global margin for commitments does not take into account the appropriations related to the EGF (EUR 500 million), the EAR (EUR 264,1 million), and the staff contributions to the pensions scheme (EUR 86 million).

[12]             The global margin for payments does not take into account the appropriations related to the EAR (EUR 80 million), and to the staff contributions to the pensions scheme (EUR 86 million).