Procedure : 2009/2002(BUD)
Document stages in plenary
Document selected : A7-0038/2009

Texts tabled :

A7-0038/2009

Debates :

PV 20/10/2009 - 12
CRE 20/10/2009 - 12

Votes :

PV 22/10/2009 - 8.2
Explanations of votes
Explanations of votes

Texts adopted :

P7_TA(2009)0051

REPORT     
PDF 1139kWORD 1519k
13 October 2009
PE 428.278v03-00 A7-0038/2009(Par1)

on the draft general budget of the European Union for the financial year 2010, Section III – Commission (C7-0127/2009 – 2009/2002(BUD)) and Letter of amendment No 1/2010 (SEC(2009)1133) to the draft general budget of the European Union for the financial year 2010

Part 1: Motion for a resolution

Committee on Budgets

Rapporteur: László Surján

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION
 ANNEX 1
 ANNEX 2
 EXPLANATORY STATEMENT
 OPINION of the Committee on Foreign Affairs
 OPINION of the Committee on Development
 OPINION of the Committee on International Trade
 OPINION of the Committee on Budgetary Control
 OPINION of the Committee on Economic and Monetary Affairs
 OPINION of the Committee on Employment and Social Affairs
 OPINION of the Committee on the Environment, Public Health and Food Safety
 OPINION of the Committee on Industry, Research and Energy
 OPINION of the Committee on the Internal Market and Consumer Protection
 OPINION of the Committee on Transport and Tourism
 OPINION of the Committee on Regional Development
 OPINION of the Committee on Agriculture and Rural Development
 OPINION of the Committee on Fisheries
 OPINION of the Committee on Culture and Education
 OPINION of the Committee on Civil Liberties, Justice and Home Affairs
 OPINION of the Committee on Constitutional Affairs
 OPINION of the Committee on Women's Rights and Gender Equality
 RESULT OF FINAL VOTE IN COMMITTEE

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

on the draft general budget of the European Union for the financial year 2010, Section III – Commission (C7-0127/2009 – 2009/2002(BUD)) and Letter of amendment No  1/2010 (SEC(2009)1133) to the draft general budget of the European Union for the financial year 2010

The European Parliament,

–   having regard to Article 272 of the EC Treaty and Article 177 of the Euratom Treaty,

–   having regard to Council Decision 2000/597/EC, Euratom of 29 September 2000 on the system of the European Communities' own resources(1),

–   having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (Financial Regulation)(2),

–   having regard to the Interinstitutional Agreement (IIA) of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management(3),

–   having regard to its resolution of 10 March 2009 on the Commission's annual policy strategy for the 2010 budget procedure(4),

–   having regard to the preliminary draft general budget of the European Union for the financial year 2010, which the Commission presented on 29 April 2009 (COM(2009)0300),

–   having regard to the draft general budget of the European Union for the financial year 2010, which the Council established on 10 July 2009 (C7-0127/2009),

–   having regard to Letter of amendment No 1/2010 (SEC(2009)1133) to the preliminary draft general budget of the European Union for the financial year 2010,

–   having regard to Rule 75 of and Annex V to its Rules of Procedure,

–   having regard to the report of the Committee on Budgets and the opinions of the other committees concerned (A7-0038/2009),

Key issues

1.  Recalls that its political priorities and its assessment of the budgetary framework for the year 2010 were set out in its resolution of 10 March 2009, where Parliament was highly critical of the tight margins available in most of the headings of the Multiannual Financial Framework (MFF);

2.  Deplores the fact that, in its draft budget, Council has reduced the Commission's Preliminary draft budget (PDB)even further: commitment appropriations in the draft budget total EUR 137 944 million, which represent a decrease relative to the PDB of EUR 613 million, and payment appropriations of EUR 120 521 million represent a decrease relative to the PDB of EUR 1 795 million; underlines that this has even further increased the disparity between the level of commitments and payments, which is contrary to the principle of sound financial management;

3.  Recalls that the key objective of the 2010 budget must be to give special attention to the recent economic crisis; resolves that in this context Parliament will put European citizens first, proving that the European Union is not at the origin of the problem, but can be instrumental in the solution; therefore has amended accordingly the Draft Budget of the Council, with the aim of using the EU budget as a tool to help overcome the current crises, by giving impetus to economic growth, competitiveness, cohesion and job protection;

4.  Reaffirms, after having examined the draft budget, that heading 1a does not allow proper financing of the EU's needs on "Competitiveness for growth and employment" where there is a shortfall, particularly for addressing the current economic crisis and limiting its possible consequences; considers that this heading should be examined in depth and, if need be, revised to ensure it fulfils its objectives in future years;

5.  Recalls the agreement on the joint declaration, annexed to this resolution, by the Parliament and Council at the first reading conciliation on the 2010 budget of 10 July 2009; has taken it into account in the preparation of its amendments to the draft budget;

On the European Recovery Plan

6.  Stresses that the financing of the second phase of the European Economic Recovery Plan is a priority for Parliament; intends to use the tools provided for in the IIA in order to guarantee its financing; recalls, in this context, that the European Council was not able to present its plans in its draft budget; recalls that the financing agreement should not jeopardise the financial envelopes of the co-decided programmes nor the annual budgetary procedure as outlined in the declaration agreed by the budgetary authority on the financing of the European Economic Recovery Plan of 2 April 2009; recalls also its view on the principles and the prudence required when using available margins under a particular heading;

On heading 1a

7.  Is astonished by Council's additional cuts on lines supporting the Lisbon strategy, which is based on a European Council decision; points out that this is contrary to what should have been done in order to address the current economic crisis;

8.  Is committed to doing its utmost to secure adequate financing for all activities and policies under heading 1a which foster sustainable growth and job creation and deliver solutions to European citizens namely by providing greater energy security, increasing support for research and innovation, particularly on clean energy technologies, promoting small and medium-sized enterprises and reinforcing life-long learning; recalls the importance of optimising the implementation of framework programmes and calls on the Commission to take into account the Parliament's position as adopted in the discharge procedure for Commission 2007 (P6_TA(2009)0289) Nos. 113 through 123 on those implementation problems.

9.  Recalls the revised rules in the Regulation (EC) No 546/2009 of the European Parliament and of the Council of 18 June 2009 amending Regulation (EC) No 1927/2006 on establishing the European Globalisation Adjustment Fund(5) for the benefit of workers who suffer from the consequences of major structural changes in world trade patterns, to assist them with their reintegration into the labour market; stresses the need to have a thorough examination of the EGF in the Midterm Review;

On sub-heading 1b

10. Regrets the cuts introduced by the Council to the PDB in a period when structural and cohesion funds should be used for stimulating economic growth and recovery; proposes systematic increases to payments on the main lines (ERDF, ESF, Cohesion Fund) to boost implementation of structural policy in the Member States, for the benefit of all European citizens;

11. Points out that the current weak implementation of structural and cohesion policy is mainly due to the low flexibility in the system of complicated rules and requirements imposed by the Commission and Member States;

12. Insists that Member States use all the existing tools to accelerate or even revise their operational programmes in order to tackle the consequences of the recent economic and financial crisis more efficiently; calls on the Commission to endorse these modifications in the shortest possible period of time so as not to delay their implementation;

13. Urges the Council to find an agreement on the proposal made by the Commission in July for amending the general provisions of the ERDF, ESF and Cohesion Funds as regards simplification of the provisions relating to financial management;

14. Underlines that numerous important policies and activities aimed at fighting climate change and supporting growth for jobs are financed under this sub-heading, and that more should be done to focus the efforts in order to effectively address those priorities;

15. Reiterates the importance it attaches to the solidarity principle within the Union; intends to make every effort to guarantee sufficient funding for cohesion policy in order to be able to deal with current and future challenges;

On heading 2

16. Is of the opinion that the EU budget in its present format cannot address effectively and realistically the goals that the Union has set for climate change; considers that European citizens need a tangible European initiative to fight climate change, face its consequences and finance the necessary policies;

17.  Recalls that, in view of the Copenhagen conference in December 2009, the fight against climate change will remain one of its top priorities for Budget 2010; considers, however, that this priority is not sufficiently reflected in the draft budget and intends, consequently, to put stronger emphasis on this key policy; reminds the Commission to submit a timely and reasonable financing proposal in the aftermath of the climate change conference;

18.   Emphasises the priority given by its competent committee for aiding milk producers; decides to send a clear message to the Commission and the Council by proposing an amount of EUR 300 million for the creation of a Dairy Fund; urges the Commission to take on board this request when presenting its Amending letter No 2;

19.  Decides to finance the broadband internet measures for rural areas of the European Economic Recovery Plan from the margin of heading 2, in line with the relevant declaration agreed by the budgetary authority on the financing on 2 April 2009;

20. Stresses the need to increase the funding of programmes with the potential to promote the consumption of agricultural products (e.g. school milk and school fruit schemes);

On sub-heading 3a

21.  Acknowledges European citizens' wish for a safe and secure Europe and welcomes the increases in this sub-heading relative to the 2009 budget; acknowledges that all countries in the Union are facing many challenges in relation to policies covered by this heading; urges Member States to take advantage of the increases in this subheading relative to the 2009 budget to tackle these challenges together;

22. Stresses the importance of further funding being made available via the EU budget to manage legal immigration and integration of third country nationals while in parallel tackling illegal immigration in full respect of human fundamental rights, and strengthening border protection, including the strengthening of the European Return Fund and the European Refugee Fund to facilitate solidarity between the Member States;

On sub-heading 3b

23. Recalls that sub-heading 3b covers vital policies that have a direct impact on the everyday life of European citizens; disagrees with the Council's cuts in this sub-heading and endorses the specialised committees' approach, ensuring that the increase of the appropriations is justified;

24. Recalls that the low turn-out in the European elections has shown once again that information and communication policy has to be improved in the 2010 budget; acknowledges that this represents a common challenge for the Commission, the Member States and Parliament as a necessary part of the democratic process; has therefore tabled several amendments putting in reserve a part of appropriations foreseen for the information and communication policy; calls on the Commission to present to Parliament its plans on how to implement the outcome of the findings of the Interinstitutional Group of Information (IGI);

On heading 4

25. Supports Letter of amendment No 1 to the PDB 2010 adopted by the Commission on 2 September 2009, which provides for an increase on two lines: Palestine and climate change in developing countries, two priorities put forward by the Parliament;

26. Has decided to put the increase on budget line climate change in developing countries into reserve, waiting for the outcome of the Conference on Climate Change in Copenhagen; stresses, however, the need for a new financial instrument to help developing countries to cope with the effects of climate change, so the Development Cooperation Instrument (DCI) can fulfil its originally assigned tasks in the future;

27. Reiterates its serious concerns about the dangerously narrow margin for manoeuvre resulting from chronic under-financing of a heading constantly under pressure as a result of crises occurring in third countries;

28. Calls on the Commission to present a plan to restore, over the period 2010 to 2013, the financial means thatwere reallocated from the Instrument for Stability to the Food Facility, in order to ensure that the Union has the full financial means available, under heading 4 of the budget, to fulfil its role on the international stage as expected by the citizens of Europe; calls on the Commission to present a plan for the mobilisation of financial resources for any external emergency assistance facilities or mechanisms that are created outside the Instrument for Stability in a way that would avoid drawing on the funds foreseen for the Instrument for Stability;

29. Calls on the European Council not to make far-reaching political commitments calling for stronger EU financial support without at the same time providing for the requisite budgetary appropriations when there is an obvious contradiction with the funds available under the annual ceilings of the current MFF;

30. Considers securing energy supply an important issue for the Union; therefore welcomes the signature of all participatory countries to the Nabucco project, and expects consistency from all of them when dealing with other projects that might put Nabucco at risk;

31. Continues to count on support for the peace process in Palestine and the reconstruction needs in Gaza Strip; calls on the Commission to communicate which measures it has taken to minimise the risks that projects and programmes financed under this budget line are used or diverted to terrorist organisations or acts of terrorism, or inefficient bureaucracy, and to specify whether part of the aid is aimed at rebuilding premises or infrastructure previously financed by the Union or its Member States and damaged by military action;

32. Stresses the necessity of allocating sufficient funding to the EU Baltic Sea Strategy in order to finance actions that cannot be financed from other budget lines (coordination, information and pilot projects in any of the four pillars of the action plan);

On heading 5

33. Has decided to accept some of the Council's cuts in the administrative expenditure lines, based on a selective approach, striking a balance between the overall budgetary priorities, including new ones, and the needs for implementation of existing policies;

34. Has nevertheless reinstated the appropriations for staff expenditure; points out that the total amount of all types of administrative expenditure financed outside heading 5 has substantially increased in recent years; requests that in future, proposals from the Commission to transfer administrative expenditure to the operational headings be fully justified; acknowledges that operational programmes can not function without the necessary administrative support; is, however, greatly concerned that under the current MFF part of the overall envelope for multi-annual programmes under headings other than heading 5 is being used for administrative expenditure;

35. Is worried about the current call for tender for a New European Quarter; reiterates its request to be fully informed on the selection process and the need for further information on the Commission's building policy in general;

36. Calls on the Commission to present a calendar for the proposals on the tri-annual Review of the Financial Regulation;

On pilot projects and preparatory actions

37. Recalls that the IIA allows for a total amount for pilot projects of up to EUR 40 million in any budget year and for a total amount for preparatory actions of up to EUR 100 million out of which a maximum of EUR 50 million can be allocated to new preparatory actions;

38. Considers these projects an indispensable tool for Parliament to initiate new policies for European citizens; regrets that for the majority of ongoing pilot projects and preparatory actions the Commission has entered payment appropriations only, which means that no follow-up will be given; has analysed a series of interesting proposals, only some of which could be entered into the 2010 budget due to the constraints of IIA and MFF ceilings;

39. Has given priority to the implementation of pilot projects and preparatory actions in their second or third year; intends to monitor closely the implementation of these and the newly established projects and actions during the financial year 2010;

o

o o

40. Instructs its President to forward this resolution, together with the amendments and proposed modifications to Section III of the draft general budget, to the Council and Commission, and also to the other institutions and bodies concerned.

(1)

    OJ L 253, 7.10.2000, p. 42.

(2)

   OJ L 248, 16.9.2002, p. 1.

(3)

   OJ C 139, 14.6.2006, p. 1.

(4)

    Texts adopted, P7_TA-PROV(2009)0095.

(5)

   OJ L 167, 29.6.2009, p. 26


ANNEX 1

STATEMENTS AGREED AT THE CONCILIATION OF 10 JULY 2009

JOINT DECLARATION FOR ENTRY IN THE COUNCIL MINUTES

Recruitment in relation with the 2004 and 2007 enlargement

"The European Parliament and the Council stress again the importance of a full recruitment on all posts related to the 2004 and 2007 enlargement, especially for middle and high management level, and insist that all efforts should be made by the institutions and specifically by EPSO to ensure that the necessary action is taken to speed up the whole process of filling up the posts granted by the budgetary authority with officials. The criteria should be as stipulated in Article 27 of the Staff Regulation and to arrive at the broadest possible geographical proportional basis as soon as possible.

The European Parliament and the Council intend to continue to monitor closely the ongoing recruitment process. To this effect, they request each institution and EPSO to provide twice a year, in March and October, an information to the budgetary authority on the state of affairs regarding recruitments in relation with the 2004 and 2007 enlargement."

COUNCIL DECLARATIONS FOR ENTRY IN THE COUNCIL MINUTES

1.      Payment appropriations

"The Council asks the Commission to submit an amending budget if the appropriations entered in the 2010 budget are insufficient to cover expenditure under sub-heading 1a (Competitiveness for growth and employment), sub-heading 1b (Cohesion for growth and employment), heading 2 (Preservation and management of natural resources) and heading 4 (EU as a global player)."

2.      Heading 4

"The Council, noting the Commission's intention to present a letter of amendment to the 2010 PDB covering at a later stage additional needs in the field of external actions, especially the priorities covered by previous letters of amendment and those referred to in the European Council conclusions of June 2009, has established its draft budget for 2010 with an appropriate margin under heading 4 allowing it to be taken into account."

3.      Building policy of EU Institutions and bodies

"The Council recalls its conclusions on the Court of Auditors' special report No. 2/2007 concerning the Institutions' expenditure on buildings and, acknowledging that building costs represent a significant part of the overall administrative expenditure of the EU Institutions, considers that a sound financial management of building expenses is essential.

The Council reiterates the importance of a strong interinstitutional cooperation in this field. It underlines the need for the Institutions to cooperate to the highest possible extent and to join their forces, both for the rental or purchase of buildings and for connected current expenses. It invites the Institutions to share facilities whenever appropriate in order to limit building expenses to the necessary minimum.

In this context, the Council welcomes the efforts already made by the Institutions to cooperate at interinstitutional level and to harmonise their building management methods. It notes with satisfaction the agreement on common guidelines for defining and measuring building space which was recently reached by interinstitutional working groups set up in Brussels and Luxembourg. The Council asks the Institutions to look into the potential for further interinstitutional cooperation which could include sharing of premises, joint management of premises and the scope for a possible interinstitutional buildings office.

The Council calls on the Institutions to establish long-term building strategies, based on realistic estimates of future staff numbers and ensuring the necessary flexibility by means of an equilibrium between owned and rented buildings, in order to avoid as far as possible any ad-hoc decisions on buildings. It also requests the Institutions to use available space in the most efficient way and to take any possible measures of internal rationalisation. The Council welcomes the work already carried out by the Institutions on alternative financing methods and awaits the coming report from the Commission.

The Council attaches great importance to receive the information required by the relevant provisions of the Financial Regulation as soon as possible. The information should include thorough need assessments and comprehensive cost-benefit analyses, the various alternatives, outlining the options to rent or buy as well as the alternative financing possibilities, and taking all financing costs into account. Well before decisions need to be taken, the information should be made available to both arms of the budgetary authority, so that they can establish their position without time pressure.

Moreover, it reiterates its call on the Secretaries-General of the Institutions to provide information before the presentation of the preliminary draft budget. While recognising each Institution's own specificities and additional particularities characterising each project, the Council asks the Institutions to pursue their work towards harmonising this information through common definitions and indicators to allow comparisons of building space and building costs between the different Institutions, including the common understanding of the method for calculating annual costs of own property spread over the entire period of their utilisation.

The Council encourages the Institutions to continue and to intensify the energy-efficiency and environment measures in their buildings, including the certification according to environmental standards, wherever this is appropriate and feasible with the given resources.

The Council takes note of the excellent cooperation between the Institutions and the administrations of their host Member States, which contribute significantly to the sound management of building issues.

The Council recalls that its observations apply equally to the specific situation of the executive agencies, and where applicable to the decentralised agencies."

UNILATERAL DECLARATION FOR ENTRY IN THE COUNCIL MINUTES

"With regard to the adoption of the Council's position on the draft budget for 2010 and in view of proceedings pending before the Court of First Instance, Germany states that the programme "Food aid for the most deprived persons in the European Union" must be implemented in accordance with Community law. Germany states its view that market purchasing should not be used for this programme. The programme must be implemented in the light of the proceedings before the Court of First Instance."


ANNEX 2

European Parliament declarations issued during the Conciliation of the First reading of the budgetary procedure 2010

Implementation of the 2009 Budget (Budget Forecast Alert)

The European Parliament is concerned about the situation of implementation of the 2009 Budget as described in the most recent Budget Forecast alert, in particular commitments under headings 3a and 3b and payments under headings 1a, 3a, 3b and 5. It stresses the importance of progressing according to the implementing schedule foreseen in the PDB.

The European Parliament asks the Commission to present by 31 August 2009 a report providing more detailed information concerning the reasons (structural, organisational, managerial, procedural) of the delays registered in the implementation of each programme or policy area concerned.

The European Parliament also requests to the Commission to provide justifications for each programme or policy area where implementation diverts from the decisions taken by the budgetary authority in the 2009 Budget.   

The simplification and a more targeted use of Structural funds in the context of the economic crisis

The European Parliament recalls the joint declarations of the three institutions on the implementation of the Cohesion policy of November 2008 and April 2009 and underlines the necessity to continue the efforts for accelerating the implementation of structural and cohesion funds. It considers that the progress made in the simplification of assessment, approval and management procedures has been insufficient, which is demonstrated in the low approval rate of Management and Control Systems (MCSs) and Major Projects (MPs). It urges the Commission to continue its efforts to simplify implementing procedures in close cooperation with Member States and in particular, to speed up the approval of MCSs and MPs, and thus accelerate payments while respecting the N+2 rule.

The EP believes that all opportunities provided by the use of Structural Funds including the adaptation or revision of the operational programs could be mobilised for more targeted actions that facilitate overcoming the effects of the economic crisis, particularly those which support growth and competitiveness and limit job losses, and invites Member States to use this possibility. Calls on the Commission to encourage and enable by means of efficient and fast procedures the use of all measures foreseen by the Structural Funds regulations aimed at supporting growth and employment. Moreover EP recalls the importance of full and efficient use of the available appropriations.

Payment appropriations

"The European Parliament asks the Commission to submit an amending budget if the appropriations entered in the 2010 budget are insufficient to cover expenditure under a specific heading, where necessary."

Heading 4

The European Parliament notes the Commission's intention to present a letter of amendment to the 2010 PDB covering, at a later stage, additional needs in the field of external actions, especially the priorities covered by previous letters of amendment and those referred to in the European Council conclusions of June 2009. The European Parliament recalls that, during the budget conciliation procedure on 21 November 2008, the Commission committed itself to present an assessment of the situation within heading 4 accompanied, if necessary, by relevant proposals. It expects the Commission to accompany the Amending Letter by a multiannual assessment of the needs in this area.


EXPLANATORY STATEMENT

WORKING DOCUMENT NR 1 ON BUDGET 2010: WORKING METHOD AND CALENDAR

I.         Context of the 2010 budget procedure

1.  In the beginning of the second 50 year of the European Union, its citizens live in apprehension and insecurity. The current problems of economic crisis, energy supply, climate change, illegal immigration, crime, and terrorism show that the EU has to provide clear and determined help: we would like to give more security and safety to the European citizens.

2.  Common spending of the European Union needs to focus to the largest possible extent on those areas, where funds bring more safety and security and can be used more efficiently.

3.  Every year the European Parliament and the Council, as two arms of the budgetary authority, engage in long and harsh debates on the level of payment appropriations of the EU budget. The European Parliament managed to achieve some increase with regard to this level, however this has been not used effectively, mainly due to the lack of implementation capacity of the Member States, diminish at the same time the efforts and the authority of the European Parliament in the public opinion. Despite of the problematic implementation of these "extra funds", the rapporteur states that compared to the numerous aims of the European Union, common programmes are still underfinanced. There is a need to focus on those areas, that are really in need of additional financial resources and at the same time to help strengthening the European economy and the comfort of the European citizens.

4.  In time of a global financial and economic crisis, when the Member States respond with their individual aid measures, it is the role of the European Parliament to point out, that the European Union has important and long time running tools to promote economic growth and creation of jobs as well as cohesion. It would be a bad message if these tools, which also constitute solidarity among Member States, were overshadowed by national solutions.

5.  Recent global challenges showed that the EU is not able to act rapidly. At the same time it is struggling to answer these challenges, and so far has responded with solutions like the Economic Recovery Plan, the "food facility", the Globalisation Adjustment Fund or even the Solidarity Fund.

6.  The European Parliament has to act among institutional and legal uncertainties in the 2010 budgetary procedure. The 2009 elections, a new commission, the ratification process of the Lisbon Treaty, the mid-term review of the MFF 2007-13 are all special challenges.

7.  The situation is difficult, but we can build upon the work of rapporteurs of the first years of the 2007-13 financial period. James Elles, Kyösti Virrankoski and Jutta Haug felt special responsibility to use budgetary appropriations as a tool to create values (value for money, budget of results). Your rapporteur would like to continue the work done by these outstanding personalities.

8.  We have to take a step forward in the direction, where we increase mainly those lines on which we get value for EU money and perhaps decrease those budgetary appropriations, which have no added value or result.

II.       Annual Policy Strategy - a Governance tool

9.  In 2000, the European Commission acknowledged the need for management focusing more closely on results and decided to switch to the concept of activity-based management (ABM). To that end, the Commission divided up its work into a set of politically meaningful "activities'. As the Parliament had asked for, with the introduction of ABM, the 'activities' became the central element of management. It is with respect to these activities that priorities are set, objectives defined, resources allocated and managed and performance monitored and reported on.

10.  The Commission’s work is planned and reported on in an annual strategic planning and programming and reporting cycle.

11.  Concerning Budget year 2010, the cycle started in November/December 2008 (year n-2) with a policy oriented debate. Based on the subsequent proposals of the services, the Commission is currently deciding upon its "Annual Policy Strategy" (APS), which will set out the political priorities for 2010 and orientations for the allocation of human and financial resources. The annual strategy, to be adopted by the Commission on 18 or 25 February 2009, provides the framework for the preliminary draft budget (PDB) and for the Commission’s annual work programme. What is important from a budgetary aspect, is that one of the objectives of the APS (1)is to allow the adoption of a budgetary framework, in which the priority initiatives, as identified, receive the necessary resources.

12.  The President of the Commission presents the APS to the European Parliament and the Council. The three institutions then engage in a structured dialogue and each Commissioner has a discussion with the relevant parliamentary committee. The result of this dialogue is a stock taking document which is used to prepare the Commission work programme for the following year. The Commission work programme translates policy strategy into a concrete action plan and a set of deliverables.(2)

13.  Taking into account the Multi-annual Financial Framework and the APS, the European Commission then prepares the PDB, and submits it to the Council at the end of April or early May ("on 1st September at the latest", pursuant to article 272, par 3 of the Treaty).

14.  The APS defines the framework and guidelines for both the budgetary and legislative cycles. Following adoption of the strategy, the cycle moves on to the budgetary procedure on the one hand (beginning with the preparation of the preliminary draft budget) and the inter-institutional dialogue (with Parliament and Council) on the other.(3)

15.  The committee on Budgets has been active in supporting the priorities that have been identified in Parliament and this is why your Rapporteur favours first, the drafting by the Budgets committee of the budgetary priorities for 2010 and, second, the “early enough” in time adoption before the PDB of this document, so that it contributes effectively to the shaping and concretisation of the priorities.

III. Procedural aspects and calendar

16.  Following the decision by the Conference of Presidents based on the proposals of the Working Group on Parliamentary Reform(4), a strategic debate is foreseen to take place following Commission's presentation of the Annual Policy Strategy, which is to be adopted in February.

17.  This debate is strengthened with two resolutions. One resolution by the political groups on "Commission's Annual Policy Strategy" and one on "Guidelines for Budget 2010" prepared by the Committee on Budgets.

· A possible calendar for the resolution on "Guidelines for Budget 2010" could be:

· 10/11 February: presentation of draft report, followed by a deadline for amendments

· 23/24 February: vote on the draft report in the Committee.

· March I Plenary (alternatively March II) Adoption of the resolution.

18.  Your Rapporteur wishes to underline the special contribution that EP can bring by its budgetary prerogatives and to do this in due time. The resolution should be adopted in plenary preferably March I, in order to have optimum input for the Commissions PDB, scheduled to be adopted on 29 April.

19.  Because of the electoral period, there will be no possibility to have a resolution voted in plenary, which comments the PDB and outlines EP’s delegation mandate for the July conciliation. In the past, particularly during electoral years, the mandate report concerning the budget conciliation procedure before the Council's first reading has been voted in the committee on Budgets only, and not by Plenary.

IV. Working method

20.  Over the past years the committee on Budgets has put particular emphasis on a continuous and constructive cooperation with the committees with a view to follow their priorities for the next annual budgetary procedure. A letter has already been sent to the specialised EP committees inviting them to appoint their budget rapporteurs and to hold regular meetings, the first being proposed for early February, before the presentation of the Annual Policy Strategy by the Commission.

21.  This cooperation will be further formalized this year as the Conference of Presidents decided on 18 September 2008(5) that each of the Parliament's committees shall nominate rapporteurs for the budget and legislative planning at the beginning of the year, and the Conference of Committee Chairs should establish a working party of such rapporteurs, in order to identify the links between budgetary and legislative priorities throughout the annual budget and legislative planning cycles.

V. Priorities for 2010

22.  The rapporteur invites Members to contribute at the debate in Committee so as to start shaping the priorities that should be embedded in next year's EU budget. Many of the topics addressed in the 2009 budget will be followed-up and further developed in the 2010 budget, also new issues will be addressed:

· "Safety and security for European citizens" which covers many aspects providing an answer to all of the fears and uncertainties of EU citizens.

· Structural funds: simplifying and accelerating implementation as a follow-up to the declaration reached at the conciliation meeting on 21 November 2008

· "Instruments for financial programming" - available margins - mid term review

· State of play and new needs relating to EU's external action

· Screening exercise on Commission staff and building policy

23.  The above mentioned points of interest constitute an indicative list of working documents, additional to the "procedural ones" on the PDB, DB and Agencies, which allow deeper examination and discussion.

WORKING DOCUMENT NR 2 ON INSTRUMENTS OF SAFETY FOR EUROPEAN CITIZENS

I. Introduction

For long years Europe had been considered to be a peaceful, stable place in the World, widely acknowledged by all the global powers. However, through the passing time this stability and prosperity could not avoid being overshadowed by problems such as climate change and globalisation, organised trans-border crime and terrorism. In addition to these challenges the recent financial crisis brought even more ambiguity in the every day life of the European citizens. Europeans feel more and more the consequences of these problems, therefore it is not surprising that the following questions seriously fluster our citizens.

· Will I still have a job next year?

· Will the savings on my bank account be still available?

· Will I be able to heat my home next winter?

· Will the pension rights I have acquired be safe?

The European Union is able to prove its citizens that it can provide answers to these questions and that these problems can be solved at the community level. Such way, the message will be clear for the citizens: The individual weak to solve the global problems. It is worth cooperating.

However in order to act efficiently and so to achieve the expected results, the EU has to find and use the proper means and tools of action and overcome the existing obstacles. It is essential to reshuffle the now existing rigid budgetary system, where urgent questions cannot be answered quickly enough and to overcome the limit of available small amounts of financial tools that currently count only for 1% of the European GNI. These steps forward are unavoidable to make Europe again the place of peace, stability and prosperity.

II. Safety for European Citizens

European integration is one of the greatest achievements in the history of our continent. It not only brought peace, freedom and stability, but also a period of unprecedented prosperity. In the past, the need for peace brought the peoples of Europe together. Nowadays, however, a number of problems that have direct impact on the lives of our citizens - the current financial crisis, the fight against climate change, our ageing societies, as well as terrorism and organized crime - require close cooperation at the European level and a strong and stable Europe in the World.

This working document builds on the recently voted EP resolution "Guidelines for the 2010 Budget procedure"(6) and intends to highlight those EU Budget lines identified as "Key lines" translating these efforts. They are listed in some detail in the Annex to this working document. By means of the Annex, final implementation percentage since 2007 can be followed, including its consequences on the financial programming by the Commission as of 30 January 2009.

1. Responding to the global financial and economic crisis

Recent global challenges showed that the EU is not able to act rapidly. It is struggling to answer the challenges, and so far has responded with solutions like the "food facility", the Globalisation Adjustment Fund and the Solidarity Fund. These programmes were decided on after lengthy and time consuming debates in Council, while the European Parliament continuously urged the Member States to speed up their decision making and compromise seeking. Moreover, transfers of financial support from Globalisation Adjustment Fund and Solidarity Fund to the regions in need are also slow because of unnecessary administrative and procedural burdens.

Member States have recently given answers to the problems, but the capacity to act on European level has still to be proved, as the case of the Economic Recovery Plan that was for long months blocked in the Council showed.

The European Union has important and long time running tools in its Budget to promote economic growth and creation of job as well as cohesion. Those programmes in Heading 1a and 1b aim to stimulate economic growth and can help to overcome the danger of job losses, promote job creation and support SMEs. However, your rapporteur is concerned that the current margin under Heading 1a, estimated at EUR 111 599 000, does not allow the effects of the economic crisis to be appropriately addressed.

CIP Entrepeneurship and innovation, European Social Fund, the European Globalisation Adjustment Fund, the European Social Fund, the European Regional Development Fund are of outmost importance.

a) Lisbon goals

With the establishment of the Lisbon Agenda in 2000, the EU set itself the strategic goal of establishing a competitive, innovative and knowledge-based European economy, capable of sustainable economic growth with more and better jobs and greater social cohesion by 2010. The Budget procedure 2010 is certainly one opportunity to strike a balance.

Although crucial parts of the Lisbon Agenda clearly involve decisions that are of a legislative rather than budgetary nature, and financing at EU level is complementary to national financing, the Community budget can make an important contribution to key areas such as research and innovation, innovative measures for SMEs and life-long learning. In this context your rapporteur recalls that heading 1A is a central part of the Community contribution to Europe's efforts in this field. The 7th Framework Programme for research and development and the CIP programme (line 01 04 04 -see Annex) will have to be looked at in the course of the budgetary procedure.

b) Cohesion policy and economic recovery

Although the measures proposed by the Commission were for long months blocked in the Council, it is important to highlight the intentions of the Commission: the Economic Recovery Plan and the subsequent measures contain a Community contribution estimated at EUR 30 billion, to be distributed as follows: EUR 5 billion  for energy interconnections and high-speed internet through a revision of the 2007-2013 MFF, advanced payments under the Structural and Cohesion Funds, frontloading concerning the EAFRD (EUR 1,5 billion), initiatives in the area of research and innovation such as the European green cars initiative, factories of the future initiative and energy-efficient buildings initiative, an increase in the pre-financing for the most advanced trans-European transport projects as well as for initiatives in favour of SMEs or the Community innovation programme (CIP).

EP should take stock of developments both at national and EU level and aim to prioritise different actions in order that resources are not spread too thinly. In this respect, the Commission must also take its responsibility and clearly point out what choices have been made and on what grounds in its forthcoming PDB.

With a financial envelope of over EUR 347 billion for 2007-2013, cohesion policy provides considerable support to public investment by Member States and regions. However, there is a risk that pressure on national budgets will slow down the rate of planned investment. To give an immediate boost to the economy, the Commissions Economic Recovery Plan proposes to accelerate implementation of the structural funds and to increase its pre-financing of programmes to make up to EUR 4,5 billion available earlier in 2009. It is interesting to note that the Commission committed to propose a number of other measures designed to bring forward the implementation of major investment projects, to facilitate the use of financial engineering funds, to simplify the treatment of advances paid to the beneficiaries and to widen the possibilities for eligible expenditure on a flat rate basis for all the funds. It remains to be seen how this is to be brought in line with the legal requirements of the Financial Regulation and the legal base for structural funds. During the 2008 (Budget 2009) conciliation a joint declaration of The European Parliament, the Council and the Commission had been agreed which reaffirms the importance of coherence and consistency in the area of development assistance, in particular regarding the use of funds.(7)

Also the European Investment Bank has a crucial role to play, as cohesion and convergence are one of the six priority objectives for its lending activity, as set out in its business plan. In the current period of tight credit conditions financial operations and mutual cooperation of the EIB is of great significance for the public and private sector. For example, financing of SMEs is critical inside the EU. Also it is now seriously squeezed in the EU neighbourhood regions.

The responsibility of qualitative and cost benefit aspects of the expenditure belongs to the Budgetary Authority. Only a strong legal framework can assure legal security and a budget for results for the citizens. Therefore, the Commission must present a proposal for the next regular revision of the Financial Regulation in the course of the year 2009, including proposals for real simplification. Also the Commission must put pressure on the Council to develop and improve the legal working conditions in OLAF’s fight against fraud with regard to the proposals made by Parliament.(8)

2.        Providing energy and transport security

Your rapporteur recalls that the Community shall contribute to the establishment and development of trans-European networks in the areas of transport, telecommunications and energy infrastructures (Article 154 TEC). The recent gas crisis has reminded that security of energy supply cannot be taken for granted. The European Union is extremely dependent on its external energy supplies, with imports currently accounting for an average 54% of its demand (in some countries even more than 90%). This figure may rise to 70% by 2030 if current trends persist. 77% of EU demand for oil and 51% of EU demand for gas is met from imports and there will be an increased demand from third countries that will compete for the energy resources required by EU Member States. At the same time, EU energy consumption is projected to grow by 22% in the period 1990 to 2020. Furthermore, rising energy prices have a direct and important impact on consumers and on the competitiveness of the European economy. In view of these challenges, the relevance of nuclear power will have to be reassessed.

Your rapporteur underlines that the lack of alternative (renewable) energy sources, alternative energy transport routes, energy source storage capacity and energy transport interconnections among Member States is detrimental to the energy independence of Europe and the well-being of its people; therefore the Union should be better prepared for times of energy shortage as expressed by the EP in its report on Guidelines for Budget 2010.

As part of the EU recovery plan, the European Commission has also presented accompanying proposals to invest in key energy, infrastructure projects. These would deliver strategic goals such as energy security.

The Commission proposal to invest in trans-European energy interconnections that was long months on hold because of a lack of agreement within the Council, contrary to the will of the European Council, as expressed in December 2008.

Furthermore, the European Community has taken legislative action on a number of energy issues like the use of bio-fuels, the promotion of renewable energy sources, demand management measures, the improvement of energy efficiency and the liberalisation of energy markets. Yet, implementation of many of these measures by the Member States is not completed.

The current energy programme "Intelligent Energy - Europe", which is a part of the EU's CIP Programme is the EU's tool for funding action to improve these market conditions in order to take profit of many untapped opportunities to save energy and encourage the use of renewable energy sources and move towards a more energy intelligent Europe. It aims at contributing to the pursuit of the 3 main objectives of European energy policy: security of supply, competitiveness and environmental protection.

By end of March 2009 the Commission will launch a EUR 500 million call for proposal for trans-European transport (TEN-T) projects. This will bring forward existing funds that would have been reallocated by the mid-term review of the multi-annual TEN-T programme in 2010.

3.        Reinforcing internal security

Heading 3a has undergone a substantial increase in last years and this trend is bound to continue, as already foreseen in the MFF. This is particularly obvious in areas which deal directly with issues like immigration or the fight against terrorism and organized trans-border crime.

Indeed, according to the financial programming by 30 January 2009, Heading 3a is set for a substantial increase of its funding, from EUR 863,095 million in 2009 to EUR 1 009 million in 2010 (more than 15%). Figures concerning the implementation of the 2008 budget (88% in commitments and 86% in payments) show that the budgetary authority must monitor very closely spending in this area.

The External Borders Fund is foreseen to undergo an increase of EUR 22 million, from EUR 185,5 to 207,5 million (after an increase of 16 million from 2008 to 2009).

Meanwhile, the Commission presented a proposal for the creation of a new agency on this area, the European Asylum Support Office.(9) The financial implications of this new agency have to be properly dealt with, namely in what concerns the application of article 47 of the IIA. It should also be highlighted that the creation of the new agency will also entail a decrease in the envelope of the European Refugee Fund. Another issue to be considered is how this proposal fits in the framework of the current reflection on the future of decentralized agencies, and in particular the work of the Inter-institutional Working Group on Agencies recently set up.

On the other hand Parliament needs to be clearly informed of the foreseen developments concerning EURODAC, VIS and especially SIS II. Concerning the financial programming from 2010 on, the Commission states that the programmation specified under article 18 02 05 is covering articles 18 02 04, 18 02 05 and 18 03 11, fudging the financial programming of these three instruments in a sole budgetary article (18 02 05). Detailed information must be provided to Parliament on this.

Further clarification is also required concerning a remark in the APS communication(10): the Commission mentions "a reduction of EUR 30 millions due to the lack of legal instruments allowing to launch several mechanisms concerning external border controls (Entry-Exit, Registered traveller systems)", as this does not result from the financial programming.

The financial programming from 30 January 2009 shows also big differences in the evolution of expenses for each of the three main programs of this heading: while

- "Solidarity and Management of Migration Flows" will increase by approximately 7,6%, from 620,572 million to 667,9 million (External borders, visa policy and free movement of people will increase for almost 10%, from 338,475 to 372,5, and Migration Flows- Common immigration and asylum policies will increase by some 4.7%) and

- "Security and Safeguarding Liberties" will more than double its envelope (from 99,370 million to 196,900 million), mainly due to the transformation of EUROPOL in a Community agency and an increase of almost 20% in Prevention and fight against crime,

- "Fundamental Rights and Justice" will suffer a reduction of some 1,5% (from 134,118 million to 132,118 million), mainly due to the reduction in the Chapter Criminal Justice.

The civil Protection Financial instrument (Heading 3 B - line 07 04 01) has been significantly reduced by the Commission from 2008 compared to 2009, (EUR 20 mio. to EUR 18,5 mio) and only the intervention by the EP (which restored the PDB amount) helped to impede further cuts by the Council.

The reasons for such disparity will have to be fully scrutinized by EP.

4.        Environmental protection and combating climate change

Climate represents a small proportion of the current MFF 2007- 2013. For example, for non-nuclear energy research EUR 2.35 billion are foreseen, and for nuclear research EUR 2.75 billion for 2007-11. There is also small climate commitment in Structural, Cohesion and CAP funds. Concerning the period 2000-2006, estimates indicate that about 13% of Structural/Cohesion funds had been spent on climate friendly investments.

Global financial requirements according to a recent CEPS study(11) are estimated between 0.6% and 1.6% of the world GDP, or about EUR 230 and 614 billion annually (based on the global GDP of 2006).

The costs for the EU at 27 MSs level could be of EUR 60 billion per year, as estimated by the authors of the CEPS study.

It is also worth to mention that the EIB is also active in promoting projects aimed at combating climate change and fostering renewable energy sources.

On the revenue side, it appears that the EU-ETS (European Trading Scheme) is mentioned among the sources with potential to create considerable revenues to the Budget in a near future. There is no joined-up approach in the Budget to issues relating to energy, climate change and foreign policy for the moment. Beside actions covered by the Title 07- Environment, there are the following budget lines linked with "Climate Change" in Budget 2009: Heading 2: 07 03 12 - Climate change actions (new budget line) with appropriations of EUR 20 mio. entered in reserve, 07 03 16 - Pilot project — Development of prevention activities to halt desertification in Europe with appropriations of EUR 1 mio in CA and PA, 07 03 17 - Preparatory Action - Climate of the Carpathian basin appropriations of EUR 2,5 mio. in CA and PA. 17 03 09 - Complex research on Health, Environment, Transport and Climate Change (HETC) - Improvement of indoor and outdoor air quality with appropriations of EUR 4 mio in CA and PA for 2009.

In Heading 1a: Chapter 08 06 - Cooperation - Environment (Including Climate Change) with EUR 216 303 000.

III. Conclusions

The global challenges have never been greater since the founding of the European Union -financial crisis, energy supply crisis, climate change, increasing illegal immigration, crime and terrorism. However, it seems so that the resources in the Multi-annual Financial Framework to meet the problems are insufficient.

Your rapporteur is of the opinion that qualitative value for money should be one of the tools to compensate the absence of quantity in budgetary means. The Budget of the European Union is financed by the European tax payers to fund activities which are expected to bring a European added value and are in line with the principles of subsidiarity, proportionality and solidarity. Under a tight MFF with very little room for new actions, time has come to start looking at the quality of European expenditure. The criteria to measure the quality of spending that were set up mainly during the Budgetary procedure 2007 (by rapporteur James Elles) are still valid:

- did a policy achieve the objectives set up by the Budgetary Authority ?

- what is the impact assessment compared to the quantity of funding involved ?

- what part of the funding has been dedicated to administrative expenditure and what part to operational expenditure ?

- were human and financial resources efficiently used ?

- what is the European added value of the programmes / action ?

- how can fraud be impeded?

Your rapporteur is convinced that having an appropriate Budget 2010 will help the European Union to overcome the global crisis successfully. This will then clearly highlight the absolute sense of cooperation for the European citizens. The united Europe gives safety to its citizens. Such a safety cannot be guaranteed by any of the Member States alone.

Proving to European citizens that the European Union can tackle the crises would give a clear message: it is worth co-operating and the existence of the European Union is a necessity.

ANNEX : KEY LINES - Fact Sheets implementation 2007 - 2009 and Financial Programming 2010

The key lines identified and mentioned in the present Working Document are presented since Budget 2007 with final implementation percentage as of end of 2007 and 2008, the final figures of Budget 2009 and the financial programming by the Commission as of 30 January 2009.

 

 

 

2007 Budget

 

2008 Budget

 

 

 

 

 

2009 Budget

 

Fin. Prog.2010

Budget Line

Title

Cat MFF

Final

Implement.

EP 2nd reading

 

Final figures(incl. trfs & ABs)

 

Implementation(31.12.2008)

 

EP 2nd reading(adopted 18.12.2008)

 

 

 

 

 

c.a.

c.a.

c.a.

p.a.

c.a.

p.a.

c.a.

p.a.

c.a.

p.a.

 

Responding to the global financial and economic crisis

 

 

 

 

 

 

 

 

 

 

 

 

1. Growth, competitiveness, innovation and research programs, SMEs, entrepreneurship

 

 

 

 

 

 

 

 

 

 

 

 

08 01 04 30

European Research Council Executive Agency (ERCEA)

1a

-

-

19,994

19,994

12,13

12,13

92.54 %

25 ,31%

32,41

32,41

 

FP7 (including sixth Research framework programme)

 

 

 

 

 

 

 

 

 

 

 

 

08 13 01

Capacities — Research for the benefit of small and medium-sized enterprises (SMEs)

1a

120,570

100,00%

147,890

141,302

147,890

141,302

100,00%

99,23%

123,613

180,438

 152,744

08 18 01

Capacities — Risk-sharing finance facility

1a

40,000

100,00%

pm

4,000

p.m.

4,000

 

99,89%

31,500

30,000

 30,000

CIP Entrepreneurship and innovation

 

 

 

 

 

 

 

 

 

 

 

 

01 04 04

Competitiveness and Innovation Framework Programme - Enterpreneurship and Innovation Programme

1a

142,100

100,00%

143,000

113,000

146,900

113,000

100,00%

99,95%

150,150

133,217

170,000

02 01 04 04

CIP Programme — Entrepreneurship and Innovation Programme — Expenditure on administrative management

1a

9,018

79,35%

 

 

7,064

7,064

96,60%

38,12%

 

 

6,707

02 01 04 30

Executive Agency for Competitiveness and Innovation — Subsidy for the Competitiveness and Innovation Framework Programme — Entrepreneurship and Innovation Programme

1a

3,082

 

 

 

6,936

6,936

 

 

 

 

7,790

02 02 01

Competitiveness and Innovation Framework Programme — Entrepreneurship and Innovation Programme

1a

111,100

100,00%

114,245

97,900

114,245

97,900

99,48%

86,88%

139,210

125,951

127,300

02 02 03 02

Support for small and middle-sized enterprises (SMEs) in the new financial environment

1a

p.m.

 

p.m

3,500

p.m

3,500

 

100,00%

p.m

1,500

 

CIP ICT policy support

 

 

 

 

 

 

 

 

 

 

 

 

09 01 04 03

Competitiveness and Innovation Framework Programme — Information and Communication Technologies policy support — Expenditure on administrative management

1a

0,900

97,32%

 

 

1,410

1,410

90,25%

48,33%

 

 

 

09 03 01

Competitiveness and Innovation Framework Programme — Information and Communication Technologies policy support programme

1a

56,485

99,93%

51,000

23,000

51,000

23,000

99,97%

99,53%

110,300

36,000

 

Other actions and programmes

 

 

 

 

 

 

 

 

 

 

 

 

02 02 02 01

Supplementing the work on the industrial competitiveness policy for the European Union

1a

3,060

94,07%

3,100

3,100

1,100

782,000

79,23%

81,86%

3,100

2,991

3,200

02 02 05

Enlargement SMEs

1a

 

 

p.m

2,500

 

 

 

 

p.m

0,740

 

02 02 05 01

Enlargement programme for SMEs

1a

p.m.

 

p.m

0,500

p.m

0,500

 

30,25%

p.m

0,180

 

29 02 04

Modernisation of European Enterprise and Trade Statistics (MEETS)

1a

 

 

p.m

p.m

p.m

p.m

 

 

 

 

 

European territorial cooperation objective

 

 

 

 

 

 

 

 

 

 

 

 

13 03 15

Financial assistance to create a SMEs organisation to improve networking skills

1b

p.m.

 

p.m

p.m

p.m

p.m

 

 

 

 

 

Industrialised Countries Instrument (ICI)

 

 

 

 

 

 

 

 

 

 

 

 

19 05 01

Cooperation with industrialised non-member countries

4

22,200

100,00%

24,870

20,000

24,870

20,000

99,97%

79,66%

25,207

18,797

 

2. JOB CREATION AND JOB SECURITY (EMPLOYMENT)

 

 

 

 

 

 

 

 

 

 

 

 

Social policy agenda

 

 

 

 

 

 

 

 

 

 

 

 

04 03 04

EURES (European Employment Services)

1a

19,050

94,00%

20,050

16,000

20,050

16,000

100,00%

89,95%

19,050

17,154

 

04 04 01 01

Employment

1a

17,000

89,14%

20,000

12,000

20,000

12,000

80,66%

89,63%

22,120

21,014

32,450

04 04 01 02

Social protection and inclusion

1a

22,900

99,76%

28,030

17,500

28,030

17,500

97,52%

100,00%

30,400

17,500

10,320

Regional competitiveness and employment objective

 

 

 

 

 

 

 

 

 

 

 

 

04 02 19

European Social Fund (ESF) – Regional competitiveness and employment

1b

3.669,983

100,00%

3,483,764

1,732,666

3,483,764

767,666

100,00%

99,70%

3,477,243

2,018,600

 

3. COHESION POLICY (REGIONAL STRUCTURAL FUNDS)

 

 

 

 

 

 

 

 

 

 

 

 

Convergence objective

 

 

 

 

 

 

 

 

 

 

 

 

13 03 16

European Regional Development Fund (ERDF) — Convergence

1b

20.676,478

98,47%

21,267,270

10,606,637

21,593,537

9,479,637

100,00%

100,00%

22,417,259

9,588,000

 

European territorial cooperation objective

 

 

 

 

 

 

 

 

 

 

 

 

13 03 17

European Regional Development Fund (ERDF) — PEACE

1b

30,244

100,00%

30,849

13,437

30,849

13,437

100,00%

100,00%

31,466

1,000

 

13 03 19

European Regional Development Fund (ERDF) — European Territorial Cooperation

1b

1.055,260

86,00%

1,004,703

559,011

1,053,228

401,011

98,63%

100,00%

1,028,767

85,000

 

13 05 03 01

Cross-border cooperation (CBC) — Contribution from Heading 1-b

1b

p.m.

6,84%

45,387

25,000

48,602

25,000

100,00%

 

49,611

21,282

 

19 08 02 02

Cross-border cooperation (CBC) contribution from Heading 1b (Regional Policy)

1b

47,579

 

81,289

45,000

81,289

45,000

100,00%

100,00%

75,527

45,000

 

Cohesion fund

 

 

 

 

 

 

 

 

 

 

 

 

13 01 04 03

Cohesion Fund (CF) — Expenditure on administrative management

1b

4,950

85,89%

4,207

4,950

4,207

4,207

86,54%

43,35%

 

 

 

13 04 02

Cohesion Fund

1b

7.121,426

99,91%

8,150,101

4,786,634

8,150,101

3,351,249

99,91%

99,98%

9,291,684

3,385,000

 

European Solidarity Fund

 

 

 

 

 

 

 

 

 

 

 

 

13 01 04 04

European Union Solidarity Fund (EUSF) — Expenditure on administrative management

3b

p.m.

 

p.m

p.m

p.m

p.m

 

 

p.m

p.m

 

13 06 01

European Union Solidarity Fund — Member States

3b

196,566

100,00%

p.m

p.m

280,796

280,796

97,29%

97,29%

p.m

p.m

 

Providing energy and transport security

 

 

 

 

 

 

 

 

 

 

 

 

1. ENERGY SUPPLY

 

 

 

 

 

 

 

 

 

 

 

 

Seventh Research framework programme (including sixth Research framework programme)

 

 

 

 

 

 

 

 

 

 

 

 

06 06 01 02

Research related to energy — Fuel Cells and Hydrogen Joint Undertaking (FCH)

1a

 

 

 

 

 

 

 

 

20,160

19,200

19,200

TENs

 

 

 

 

 

 

 

 

 

 

 

 

 

06 03 04

Financial support for projects of common interest in the trans-European energy network

1a

21,200

100,00%

22,260

4,200

22,260

4,200

100,00%

74,79%

26,048

6,000

20,760

Other actions and programmes

 

 

 

 

 

 

 

 

 

 

 

 

06 04 08

Energy observatory

1a

 

 

p.m

p.m

 

 

 

 

 

 

 

06 04 09

Investment fund for renewable energy and biorefineries

1a

 

 

3,000

3,000

3,000

3,000

100,00%

 

p.m

0,900

 

06 07 04

Security of energy installations and infrastructures

1a

0,500

80,00%

0,400

0,350

0,400

350,000

100,00%

 

0,250

0,750

0,580

21 04 05

Global Energy Efficiency and Renewable Energy Fund (GEEREF)

4

0,500

100,00%

p.m

p.m

p.m

p.m

 

 

p.m

2,200

 

Instrument for Preaccession (IPA)

 

 

 

 

 

 

 

 

 

 

 

 

06 04 11

Energy Community

4

 

 

 

 

 

 

 

 

2,940

2,940

 

2. TRANSPORT SAFETY

 

 

 

 

 

 

 

 

 

 

 

 

Seventh Research framework programme (including sixth Research framework programme)

 

 

 

 

 

 

 

 

 

 

 

 

06 06 02 01

Research related to transport (including Aeronautics)

1a

 

 

 

 

119,550

134,000

 

 

61,550

74,100

59,760

06 06 02 02

Research related to transport (including Aeronautics) — Fuel Cells and Hydrogen Joint Undertaking (FCH)

1a

 

 

 

 

 

 

 

 

2,900

2,900

2,900

08 07 01

Cooperation — Transport (including aeronautics)

1a

339,999

100,00%

348,922

196,902

301,992

156,652

99,99%

99,60%

247,339

248,273

229,216

08 07 02

Cooperation — Transport — Clean Sky Joint Undertaking

1a

 

 

 

 

45,000

38,250

99,98%

98,78%

86,375

86,919

121,139

08 07 03

Cooperation — Transport — Support expenditure for Clean Sky Joint Undertaking

1a

 

 

 

 

2,000,000

2,000

100,00%

17,42%

3,625

3,625

3,625

08 07 04

Cooperation — Transport — Fuel Cells and Hydrogen Joint Undertaking (FCH)

1a

 

 

 

 

 

 

 

 

4,800

4,800

4,800

TENs

 

 

 

 

 

 

 

 

 

 

 

 

 

06 01 04 31

Trans-european transport networks — Executive agency

1a

8,617

92,98%

10212,000

8,617

100212,000

10,212

86,45%

78,44%

9,794

10,212

10,000

06 03 03

Financial support for projects of common interest in the trans-European transport network

1a

p.m.

100,00%

955,852

370,000

955,852

370,000

100,00%

100,00%

921,738

613,000

1048,640

Other actions and programmes

 

 

 

 

 

 

 

 

 

 

 

 

06 02 03

Support activities to the European transport policy and passenger rights

1a

10,000

94,22%

10,500

14,500

16,900

20,725

90,60%

78,79%

17,600

14,500

17,500

06 07 01

Transport security

1a

4,000

55,95%

2,500

3,500

2,500

3,500

87,43%

96,99%

2,750

2,530

2,500

3. SECURITY RESEARCH

 

 

 

 

 

 

 

 

 

 

 

 

Seventh Research framework programme (including sixth Research framework programme)

 

 

 

 

 

 

 

 

 

 

 

 

02 04 01 02

Security research

1a

 

100,00%

98,717

42,000

102,044

45,327

100,00%

82,18%

127,093

50,868

214,100

4. CIP INTELLIGENT ENERGY PROGRAMME

 

 

 

 

 

 

 

 

 

 

 

 

CIP intelligent energy

 

 

 

 

 

 

 

 

 

 

 

 

06 01 04 10

Competitiveness and Innovation Framework Programme — 'Intelligent energy — Europe' programme — Expenditure on administrative management

1a

0,840

79,47%

0,800

0,840

0,770

770,000

92,74%

52,47%

 

 

1,000

06 01 04 30

Executive Agency for Competitiveness and Innovation - Subsidy from the Competitiveness and Innovation Framework Programme - Intelligent Energy — Europe, programme

1a

5,737

99,98%

6,684

5,737

6,684

5,737

100,00%

91,30%

 

 

6,780

06 04 06

Competitiveness and Innovation Framework Programme — 'Intelligent energy — Europe' programme

1a

58,423

100,00%

66,061

19,000

66,061

19,000

100,00%

88,37%

88,741

72,502

101,800

Reinforcing internal security

 

 

 

 

 

 

 

 

 

 

 

 

1. BORDERS PROTECTION

 

 

 

 

 

 

 

 

 

 

 

 

Solidarity and management of migration flows

 

 

 

 

 

 

 

 

 

 

 

 

18 01 04 08

External Borders Fund — Expenditure on administrative management

3a

0,300

99,50%

0,500

0,500

0,500

0,500

99,38%

37,60%

0,500

0,500 

 

18 02 06

External Borders Fund

3a

170,000

100,00%

169,500

98,500

169,500

98,500

78,44%

100,00%

185,500

116,000

207,500 

2. FIGHT AGAINST TERRORISM

 

 

 

 

 

 

 

 

 

 

 

 

Security and safeguarding liberties

 

 

 

 

 

 

 

 

 

 

 

 

18 01 04 16

Prevention, preparedness and consequences management of Terrorism — Expenditure on administrative management

3a

0,140

100,00%

 

 

180,000

180,000

12,35%

35,70%

 

 

 

18 02 04

Schengen Information System

3a

15,0

70,6 %

26,62

16,1

28,18

10,34

79,74 %

100%

39,28

23,0

covering 18 02 05

95,0

18 02 05

Visa Information System

3a

32,0

73,33%

18,0

12,0

18,0

1

13,91

91,68%

100%

35,6

23,0

18 02 06

External Border Fund

3a

170,0

100%

169,5

98,5

169,5

117,73

78,44%

100%

185,5

116,0

207,5

18 05 08

Prevention, preparedness and consequence management of Terrorism

3a

12,700

100,00%

15,200

8,900

15,200

8,900

100,00%

55,70%

19,470

12,000

 20,3

3. FOOD SAFETY

 

 

 

 

 

 

 

 

 

 

 

 

Animal and plant health

 

 

 

 

 

 

 

 

 

 

 

 

17 04 07 01

Feed and food safety and related activities — New measures

2

20,000

84,72%

20,000

15,000

20,000

15,000

95,43%

80,72%

25,000

19,000

 

17 04 07 02

Feed and food safety and related activities — Completion of previous measures

2

p.m.

 

 

 

 

 

 

 

p.m

p.m

 

4. FIGHT AGAINST FRAUD

 

 

 

 

 

 

 

 

 

 

 

 

Other actions and programmes

 

 

 

 

 

 

 

 

 

 

 

 

07 04 01

Civil Protection financial instrument

3b

14,860

49,06%

20,000

15,000

20,000

15,000

74,47%

57,70%

18,500

14,250

19,150

24 02 01

General measures to combat fraud — Hercule II

1a

p.m.

100,00%

13,800

10,000

13,800

10,000

100,00%

70,00%

14,000

10,500

14,100

24 02 03

Anti-fraud information system (AFIS)

1a

5,750

91,18%

6,500

5,500

6,500

5,500

84,19%

72,89%

5,500

5,000

6,500

WORKING DOCUMENT NR 3 ON BUDGETARY PROCEDURE 2010 - IMPLEMENTATION OF THE EU COHESION POLICY

I. Tools of the EU Cohesion Policy

1. Cohesion Fund (CF)

The Cohesion Fund(12) is aimed at Member States whose Gross National Income (GNI) per inhabitant is less than 90% of the Community average. It serves to reduce their economic and social shortfall, as well as to stabilise their economy. It supports actions in the framework of the Convergence objective. It is now subject to the same rules of programming, management and monitoring as the ESF and the ERDF.

For the 2007-2013 period the CF concerns Bulgaria, Cyprus, the Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovakia and Slovenia. Spain is eligible to a phase-out fund only as its GNI per inhabitant is less than the average of the EU-15.

The Cohesion Fund finances activities under the following categories: trans-European transport networks, notably priority projects of European interest as identified by the Union. Concerning environment the CF can also support projects related to energy or transport, as long as they clearly present a benefit to the environment, like energy efficiency, use of renewable energy, developing rail transport, supporting inter-modality and strengthening of public transport.

The financial assistance of the CF can be suspended by Council decision (taken by qualified majority) if a Member State shows excessive public deficit and if it has not resolved the situation or has not taken the appropriate action to do so.

2. The European regional development fund (ERDF)

The ERDF(13) aims to strengthen economic and social cohesion in the European Union by correcting imbalances between its regions. The ERDF finances: direct aid to investments in companies (in particular SMEs) to create sustainable jobs; infrastructures linked notably to research and innovation, telecommunications, environment, energy and transport; financial instruments (capital risk funds, local development funds, etc.) to support regional and local development and to foster cooperation between towns and regions; technical assistance measures.

The ERDF can intervene in the three objectives of regional policy: convergence, competitiveness and employment, European territorial cooperation.

Convergence (Formerly Objective 1)

In regions covered by the Convergence objective, ERDF focuses its intervention on modernising and diversifying economic structures as well as safeguarding or creating sustainable jobs, with action in the following areas: research and technological development (RTD); innovation and entrepreneurship; information society; environment; risk prevention; tourism; culture; transport; energy; education; health.

Regional Competitiveness and Employment (Formerly Objective 2)

For the Regional Competitiveness and Employment objective, the priorities are based on three sections: innovation and knowledge-based economy: strengthening regional capacities for research and technological development, fostering innovation and entrepreneurship and strengthening financial engineering notably for companies involved in knowledge-based economy; environment and risk prevention: cleaning up polluted areas, boosting energy efficiency, promoting clean public transport within towns and drawing up plans to prevent and limit natural and technological risks; access to transport and telecommunications services of general economic interest.

European Territorial Cooperation (Formerly Objective 3)

For the European Territorial Cooperation objective, the ERDF focuses its aid on three main areas: development of economic and social cross-border activities; establishment and development of transnational cooperation, including bilateral cooperation between maritime regions; increasing the efficiency of regional policy through interregional promotion and cooperation, the networking and exchange of experiences between regional and local authorities.

Specific Territorial Characteristics

The ERDF also gives particular attention to specific territorial characteristics. ERDF action is designed to reduce economic, environmental and social problems in towns. Naturally disadvantaged areas (remote, mountainous or sparsely populated areas) benefit from special treatment. Lastly, the outermost areas also benefit from specific assistance from the ERDF to address possible disadvantages due to their remoteness.

3. The European social fund (ESF)

The ESF(14) sets out to improve employment and job opportunities in the European Union. It intervenes in the framework of the Convergence and Regional Competitiveness and Employment objectives (see above).

The ESF supports actions in Member States in the following areas: adapting workers and enterprises: lifelong learning schemes, designing and spreading innovative working organizations; access to employment for job seekers, the unemployed, women and migrants; social integration of disadvantaged people and combating discrimination in the job market; strengthening human capital by reforming education systems and setting up a network of teaching establishments.

II. Implementation of the Funds 2002 -2008

The Cohesion policy accounts for 35,6 per cent of the financial framework for 2007-2013 – which is EUR 347 billion at current prices.

The following table(15) resumes the breakdown of Structural Funds and Cohesion Funds for the years 2002 to 2008. The difference between the initial and final budget figures results from the appropriations carried forward from the previous year, amending budgets and transfers decided in the course of the year. The Implementation rates (in percentage) of the initial and final budget compare to the according absolute figures and can therefore be higher than 100 % for the Initial budget.

Breakdown of Structural Funds (Budget and Implementation) 2002-2008 in € million

 

 

 

 

 

 

 

 

 

 

2002

Initial Budget

Implementation

Final Budget

Implementation

Commitments

Payments

Commitments

Payments

Commitments

Payments

Commitments

Payments

Objective 1

21.329,6

18.818,0

100,00%

82,00%

21.329,6

18.818,0

100,00%

82,00%

Objective 2

3.729,8

4.360,0

100,00%

48,00%

3.729,8

4.360,0

100,00%

48,00%

Objective 3

3.646,0

3.360,0

100,00%

72,00%

3.646,0

3.360,0

100,00%

72,00%

Other structural operations

168,9

380,0

100,00%

41,00%

168,9

380,0

100,00%

41,00%

Community initiatives

1.860,3

2.327,0

100,00%

25,00%

1.860,3

2.327,0

100,00%

25,00%

Innovative measures & technical assistance

144,3

245,0

98,00%

76,00%

144,3

245,0

98,00%

76,00%

Other specific structural operations

170,0

39,0

100,00%

100,00%

170,0

39,0

100,00%

100,00%

Cohesion Fund

2.789,0

2.600,0

100,00%

100,00%

2.789,0

2.600,0

100,00%

100,00%

TOTAL

33.837,9

32.129,0

100,00%

74,00%

33.837,9

32.129,0

100,00%

74,00%

 

 

 

 

 

 

 

 

 

2003

Initial Budget

Implementation

Final Budget

Implementation

Commitments

Payments

Commitments

Payments

Commitments

Payments

Commitments

Payments

Objective 1

21.577,1

19.366,6

100,00%

98,71%

21.577,1

20.035,7

100,00%

95,00%

Objective 2

3.651,8

4.405,6

100,00%

82,45%

3.651,8

3.950,0

100,00%

91,00%

Objective 3

3.718,9

3.695,8

100,00%

71,32%

3.718,9

3.427,1

100,00%

77,00%

Other structural operations

171,9

506,1

100,00%

34,76%

171,9

293,4

100,00%

60,00%

Community initiatives

1.866,0

2.280,1

99,34%

36,71%

1.866,4

1.685,7

99,00%

50,00%

Innovative measures & technical assistance

143,3

180,0

95,12%

81,06%

144,2

161,5

95,00%

90,00%

Other specific structural operations

12,0

89,0

100,00%

100,00%

12,0

89,0

100,00%

100,00%

Cohesion Fund

2.839,0

2.650,0

100,93%

82,84%

2.870,1

2.195,2

100,00%

100,00%

TOTAL

33.980,0

33.173,2

100,00%

86,90%

34.012,4

31.837,6

100,00%

91,00%

 

 

 

 

 

 

 

 

 

2004

Initial Budget

Implementation

Final Budget

Implementation

Commitments

Payments

Commitments

Payments

Commitments

Payments

Commitments

Payments

Objective 1

21.952,1

18.330,0

115,72%

120,04%

25.473,0

22.155,6

100,00%

99,00%

Objective 2

3.573,8

3.061,2

101,16%

140,82%

3.618,9

4.310,8

100,00%

100,00%

Objective 3

3.793,3

3.134,8

100,22%

93,12%

3.834,8

2.929,7

99,00%

100,00%

Other structural operations

174,9

360,4

98,40%

61,21%

175,3

267,4

98,00%

62,00%

Community initiatives

1.940,2

1.209,2

109,58%

162,48%

2.138,4

1.992,8

99,00%

99,00%

Innovative measures & technical assistance

106,7

155,7

80,88%

62,17%

112,0

123,7

77,00%

78,00%

Other specific structural operations

 

69,0

 

57,00%

 

69,0

 

57,00%

Cohesion Fund

2.785,0

2.642,1

201,86%

100,03%

5.685,4

2.778,1

99,00%

95,00%

TOTAL

34.326,0

28.962,4

118,94%

118,08%

41.037,8

34.627,1

99,00%

99,00%

 

 

 

 

 

 

 

 

 

2005

Initial Budget

Implementation

Final Budget

Implementation

Commitments

Payments

Commitments

Payments

Commitments

Payments

Commitments

Payments

Objective 1

27.283,1

20.214,8

100,18%

101,80%

27.353,7

19.564,5

100,00%

100,00%

Objective 2

3.544,3

3.951,4

100,10%

98,73%

3.548,0

3.975,1

100,00%

94,00%

Objective 3

3.911,1

3.505,1

100,85%

101,00%

3.944,2

3.400,1

100,00%

100,00%

Other structural operations

180,0

250,1

98,61%

119,67%

180,3

373,1

98,00%

91,00%

Community initiatives

2.258,6

1.273,6

99,59%

165,64%

2.260,0

1.870,3

99,00%

99,00%

Innovative measures & technical assistance

114,6

195,4

90,66%

52,71%

118,8

168,7

90,00%

80,00%

Other specific structural operations

 

 

 

 

 

 

 

 

Cohesion Fund

5.131,9

3.005,5

68,74%

74,16%

5.134,0

3.133,5

69,00%

94,00%

TOTAL

42.423,6

32.395,9

100,16%

101,11%

42.539,0

32.485,3

100,00%

99,00%

 

 

 

 

 

 

 

 

 

2006

Initial Budget

Implementation

Final Budget

Implementation

Commitments

Payments

Commitments

Payments

Commitments

Payments

Commitments

Payments

Objective 1

28.472,0

23.342,4

100,13%

87,48%

28.510,2

20.474,7

100,00%

100,00%

Objective 2

3.405,1

3.187,6

100,00%

97,54%

3.405,1

3.109,1

100,00%

100,00%

Objective 3

3.988,8

3.634,9

100,00%

107,52%

3.988,8

3.908,3

100,00%

100,00%

Other structural operations

185,1

185,2

101,57%

77,27%

190,9

177,5

98,00%

81,00%

Community initiatives

2.371,5

1.621,4

99,70%

103,67%

2.369,9

1.686,7

100,00%

100,00%

Innovative measures & technical assistance

100,5

157,6

75,92%

74,24%

101,4

143,1

75,00%

82,00%

Other specific structural operations

 

5,0

 

 

 

0,0

 

 

Cohesion Fund

6.032,1

3.505,5

100,00%

85,70%

6.032,1

3.008,8

100,00%

100,00%

TOTAL

44.555,1

35.639,6

100,09%

90,86%

44.598,4

32.508,2

100,00%

100,00%

 

 

 

 

 

 

 

 

 

For the period 2007 -2013, to increase the value added of the cohesion policy, the work of the Structural Funds and of the Cohesion Fund have been concentrated and simplified and the objectives set out in Regulation (EC) No 1260/1999 were redefined: convergence of the Member States and the regions, regional competitiveness and employment and European territorial cooperation. The appropriations have been introduced under the corresponding Policy area (04, 13 and 19).

2007

Initial Budget

Implementation

Final Budget

Implementation

Commitments

Payments

Commitments

Payments

Commitments

Payments

Commitments

Payments

Convergence objective:

 

 

 

 

 

 

04 02 17– Employment and social affairs

7.416,8

6.245,8

91,26%

102,14%

6.781,8

6.381,1

100,00%

100,00%

13 – Regional policy

20.713,7

15.859,9

101,29%

108,09%

21.306,6

17.142,5

98,00%

100,00%

Regional competitiveness and employment objective

 

 

 

 

 

 

04 02 19 – Employment and social affairs

3.648,2

5.108,5

102,15%

96,28%

3.726,7

4.925,9

100,00%

100,00%

13 – Regional policy

5.349,8

4.222,6

99,54%

69,08%

5.325,4

2.918,0

100,00%

100,00%

19 08 02 02 – External relations

 p.m.

 p.m.

 

 

47,6

 p.m.

 

 

European territorial cooperation objective

 

 

 

 

 

 

13 – Regional policy

1.140,7

1.278,2

80,36%

101,53%

1.085,5

1.304,8

84,00%

99,00%

Technical assistance

 

 

 

 

 

 

04 – Employment and social affairs

27,7

22,7

75,81%

40,53%

27,3

26,5

77,00%

35,00%

13 – Regional policy

68,2

105,6

56,16%

33,81%

68,0

66,4

56,00%

54,00%

Cohesion Fund

7.121,8

4.946,9

100,04%

86,42%

7.131,5

4.283,3

100,00%

100,00%

TOTAL

45.486,9

37.790,2

98,71%

97,84%

45.500,4

37.048,5

99,00%

100,00%

 

 

 

 

 

 

 

 

 

2008

Initial Budget

Implementation

Final Budget

Implementation

Commitments

Payments

Commitments

Payments

Commitments

Payments

Commitments

Payments

Convergence objective

 

 

 

 

 

 

04 02 17– Employment and social affairs

7.614,8

6.574,7

92,02%

72,78%

7.007,3

4.889,5

100,00%

98,00%

13 – Regional policy

21.267,3

17.579,6

104,45%

94,51%

22.214,2

16.618,7

100,00%

100,00%

Regional competitiveness and employment objective

 

 

 

 

 

 

04 02 19 – Employment and social affairs

3.483,8

4.185,9

103,50%

95,22%

3.605,7

4.122,0

100,00%

97,00%

13 – Regional policy

5.108,7

3.926,5

97,65%

86,83%

4.988,6

3.411,6

100,00%

100,00%

European territorial cooperation objective

 

 

 

 

 

 

13 – Regional policy

1.080,9

1.399,1

115,35%

97,28%

1.262,8

1.377,5

99,00%

99,00%

19 – External relations

81,3

45,0

84,11%

0,89%

68,3

0,4

100,00%

100,00%

Technical assistance

 

 

 

 

 

 

04 – Employment and social affairs

25,3

41,5

101,19%

71,81%

28,1

49,5

91,00%

60,00%

13 – Regional policy

56,1

66,2

87,70%

117,37%

58,1

91,7

85,00%

85,00%

Cohesion Fund

8.154,3

6.727,6

100,00%

78,64%

8.162,5

5.295,5

100,00%

100,00%

TOTAL

46.872,5

40.546,1

101,04%

87,69%

47.395,6

35.856,4

100,00%

99,00%

The difference between the initial and final budget figures results from reductions of the initial budgets during the course of the years. This highlights significant differences concerning how many million Euros have been in fact spent compared to the original plans of appropriations. (e.g. EUR 8.5 billion Euros have got "lost" with regard the initial payment appropriations for 2006 - 2008).

Stating a 100% implementation with regard the final budgets instead of the initial budgets might therefore not always be accurate.

III. Towards a better implementation

Considering that the implementation in numbers is less than required and the financial crisis in 2008 and the consequent economic crisis require a better functioning Cohesion policy, the EP is urging for significant changes in the procedures and regulations.

Simplifying the procedures

The EP reiterated on several occasions that Member States are responsible for the proper management of the funds, under the supervision of the European Commission. Most EU funding is not paid directly by the Commission but via national or regional authorities of the Member State concerned. Each Member State has its own National Strategic Reference Frameworks establishing the main priorities for spending.

The national management of the implementation of the funds is in some countries, more than in others, extremely complicated and involves several instances of control and auditing. This creates an overload of administrative burden, which is hindering rapidity and efficiency in the implementation of the credits devoted to the National Operational Programs and their related projects.

The importance to granting management authorities, in the context of simplification, appropriate means for the effective support of project promoters in order, for example, to encourage the expected leverage effects on the economy and employment opportunities from Public and Private Partnership has been also stressed by the Parliament.

Payment delays must be reduced

On several occasion the EP denounced that payment delays related to cohesion policy are far too long: Heading 1b is supposed to be a political priority of the European Union under the financial framework for 2007-2013. Therefore the Parliament considers that delays should be reduced, if necessary also by frontloading funding. The EP also emphasised that the delays recorded in implementation of the payments related to structural policy are due in part to overly restrictive procedures, which must be simplified.

One should recall the statements adopted by the European Parliament at the Conciliation meeting of 21 November 2008 on payments and implementation of the cohesion policy in which the European Parliament reiterated its request that the Member States should adopt all the measures required to ensure that the cohesion policy is properly implemented, i.e. also within the foreseen deadlines.

Criticism has also been expressed by the Parliament aiming to reduce the outstanding commitments (RAL) for the current year and next, notwithstanding the rule N+ 1, N+2 and N+3 which is of application for the Structural Funds.

EP control over the Management and Control Systems.

In November 2008, on the occasion of the Conciliation for the second reading of the budgetary procedure, the European Parliament also adopted a joint declaration with the Commission and the Council on the need to overview the MCS. This brought the Commission to monthly report to the Parliament about the evolution on the systems and their approval.

Interinstitutional engagements in order to improve the functioning of the Cohesion Policy

During the trialogue held on 2 April 2009 between the Parliament, the Council and the Commission, the three Institutions approved a joint declaration on the implementation of the Cohesion Policy.

In the declaration they "recognise that (…) the economy may benefit from accelerating the implementation of structural and cohesion funds within the ceilings of the agreed multiannual financial framework 2007-2013." They also stated that "under the established control framework, interim payments cannot take place until management and control systems in Member States have been judged to be compliant with the requirements".

Moreover, Member States have been called to "submit the description of their management and control systems and the compliance assessments as soon as possible so as to allow the Commission to rapidly start their analysis". Finally the three institutions noted that "the modifications of the legislation being adopted by the legislative authority will simplify implementation of the structural actions and make interim payments possible for major projects before their formal adoption by the Commission."

On the same occasion the Parliament and the Council called on for the following actions to be undertaken by the Commission and the Member States:

- the Commission to take the necessary measures, within the existing legal framework, to rapidly assess the most critical aspects of the management and control systems (MCS), enabling starting the interim payments before the European Parliament's first reading of the 2010 budget;

- the Member States to rapidly submit their priority major projects and the Commission to accelerate their approval in order to have a stable and agreed framework for their implementation;

- the Commission to report about the Member States' submission of their priority major projects before the European Parliament's first reading of the 2010 budget;

- the Commission to cooperate closely together with the Member States in order to have a rapid agreement on all aspects of compliance of the MCS;

- the Member States to have all actions financed by the EU budget fully operational in 2009 in order to accelerate the economic recovery and to generate a steady flow of interim payments;

- the Commission to present in September 2009 at the latest a report on the implementation for the purpose of the budgetary procedure;

In the same declaration, the Parliament and the Council invite the "Court of Auditors and the discharge authority to take this issue into account, as well as the multiannual character of the Commission's control activity, when assessing the management of EU funds".

IV. Final Conclusions

The Cohesion policy remains a key priority for the European Union to fight the economic and social disparities amongst its regions, since after the enlargement the disparities within the EU have increased significantly. However in order to achieve real changes and real cohesion among the European regions the European Parliament has to urge the simplification and rationalisation of procedures concerning the implementation of the funds. In cooperation with the European Commission the Parliament should monitor which values and results were produced by the Cohesion policy. (i.e.: to what extent has the GDP increased, or to what extent has the unemployment rate in the supported region decreased, and whether the program in fact has achieved the objectives set in the planning phase or not).

We have to make it clear: Cohesion Policy is of utmost importance for the European Union, however only the real success of programs qualifies for any further increase of the appropriations. Europeans require results for their money.

WORKING DOCUMENT NR 4 ON THE PRELIMINARY DRAFT BUDGET 2010 - SECTION III - COMMISSION - FIRST ANALYSIS

I.   Overview

On 29 April, the Commission presented the preliminary draft budget for 2010(16) with a total of EUR 139,489 billion. According to the European Commission it is Economic recovery that is mainly targeted and the biggest share of funds (45%) goes into growth and employment measures.

Table 1: The global figures are as follows (by financial framework heading): in EUR million

 

H

 

2009 Budget

 

Ceiling MFF

 

PDB 2010

 

 

CA

 

PA

 

 

CA

 

PA

 

Margin CA

1 A

13.774,797

11.106,386

12.388,000

12.769,410

10.982,271

118,590

1 B

48.426,885

34.963,349

49.394,000

49.382,092

36.382,385

11,908

H' 1 TOTAL

T

TORAT

62.201,682

46.069,734

61.782,000

62.151,502

47.364,656

130,498

2

56.721,437

52.566,130

60.113,000

59.003,698

58.074,906

1.109,302

from which market related expenditure and direct aids

41.127,356

41.079,823

47.146,000

43.744,927

43.626,433

1.001,273

3 A

863,925

617,440

1.025,000

980,187

720,010

44,813

3 B

662,748

690,745

668,000

649,265

639,718

18,735

H' 3 TOTAL

1.526,673

1.308,185

1.693,000

1.629,452

1.359,728

63,548

4

8.103,930

8.324,169

7.893,000

7.921,091

7.664,619

220,791

5

7.694,931

7.694,931

8.008,000

7.857,803

7.858,298

230,197

TOTAL

139.489,000

138.563,547

122.322,206

1.754,335

The overall ceiling MFF for commitment appropriations represents 1,19 % of gross national income (GNI). The ceiling for payment appropriations is EUR 134 155 million, or 1,14 % of GNI.

In commitment appropriations, the total for the preliminary draft budget (PDB) 2010 is EUR 138.563,547 million, corresponding to 1,18 % of GNI and plus 1,54 % compared to commitments in the 2009 budget. This leaves a margin of EUR 1.754,3 million.

For payment appropriations, the total amounts to EUR 122 322,2 million, corresponding to 1,04 % of GNI. This is an increase of 5,3 % compared to payments in the 2009 budget.

The part of the budget to receive the biggest boost in spending is Heading 3 A (fight against crime, terrorism and management of migration flows), increasing by 13,5% to almost EUR 1 illion in commitments.

II.       Headings in detail

Heading 1 A

Competitiveness for growth and employment: commitments EUR 12.769,410 million, payments EUR 10.982,271 million. This leaves a margin of EUR 118,6 million, which does not take into account the appropriations related to the European Globalisation Adjustment Fund, which foresees Euro 500 million per year on top.

PDB 2010 foresees a decrease both in commitments (7,3%) and payments (1,1%) if compared to 2009, with respectively EUR 12,769 billion in commitments and EUR 10,982 billion in payments. (See Table 1)

Policy areas falling, totally or partly, under sub-heading 1 A are Economic and financial Affairs (01), Enterprise (02), Employment and social affairs (04), Energy and Transport (06), Indirect and Direct Research (08, 10), Information Society and Media (09), Regional Policy (13), Internal Market (12), Education and Culture (15), Fight Against Fraud (24) and Statistics (29). (See Table 2)

The main programmes of this sub-heading are the 7th Framework Programme for research and technological development, the Competitiveness and Innovation Programme (CIP), the Lifelong Learning Programme, the Progress Programme, the Trans-European Networks (TENs), Marco Polo II and Galileo. Other actions contributing to the goals of competitiveness, sustainable growth and employment are internal market, statistics, the fight against fraud, and taxation and the customs union.

An increase of credits, both in commitments and payments, compared to 2009 budget, is foreseen for the following titles of the Budget, Enterprise (+16,9%), Information society (+7,6%), Direct Research (+10,9%), and Statistics (+5,8%). (See Table 2)

As for Energy and Transport, commitments decrease while payments are increased (-40% and + 13% respectively). While for Economic and financial affairs and for Indirect Research, the PDB foresees an increase in commitments and a decrease of payments, (respectively + 1% and -28,8 % for the former and +10% and - 15,3 % for the latter).

Research and technological development

This sector represents the 59,2% of the expenditure for the whole sub-Heading 1 A budget financing. The Commission proposes a global amount of EUR 7.565,703 million.

Three major partnerships between the public and private sectors will be prepared and launched to support research and innovation, i.e.:

– European green cars initiative

– European energy-efficient buildings

– Factories for the future initiative

The Commission also intend to focus on clean energy, energy efficiency as well as energy independence.

In the field of nuclear fusion and fission, research will include ensuring early industry participation in the preparation of demonstration actions for fusion, and the launching of a European Industrial Initiative.

The Commission intends to conduct further actions under FP7 towards the greening of European transport systems, in the development and implementation of a European Knowledge Based Bio-Economy (KBBE).

The Cooperation Programme of FP7 foresees support for five long-term public-private partnerships in the form of Joint Technology Initiatives (JTIs)(17) under article 171 TEC.

Competitiveness and innovation (CIP)

This sector represents 4,1% of the expenditure for the whole sub-Heading 1 A budget financing. In the PDB the Commission proposes a global amount of EUR 524,980 million.

The Competitiveness and Innovation Framework Programme (CIP ) comprises three specific programmes: the Entrepreneurship and Innovation Programme (EIP), the Information and Communications Technologies Policy Support programme (ICT-PSP) and the Intelligent Energy-Europe Programme. The initiative on Global Monitoring for Environment and Security (GMES) will continue the gradual move from research to operational services, which has started in 2008.

Promoting sustainable EU networks for transport and energy

This sector represents 16% of the expenditure for the whole sub-Heading 1 A budget financing. In the PDB the Commission proposes a global amount of EUR 2.043,340 million.

Transport - The Trans-European Networks (TEN) for transport will concentrate, between 2007 and 2013, on 30 priority projects giving particular attention to projects on cross-border sections and aiming to eliminate bottlenecks. The other priorities for Community funding within the TEN-T programme will be: European Railway Traffic Management System (ERTMS), River Information Services (RIS), Intelligent Transport Systems (ITS), and a TEN loan guarantee instrument.

In the field of Inland, Air and Maritime Transport, the major issues are the Marco Polo programme, the NAIADES programme, the extension of the work of the European Aviation Safety Agency (EASA), the activities of European Maritime Safety Agency (EMSA) which is in charge of developing the European Long Range Identification and Tracking (LRIT) Data Centre.

The Commission also foresees to continue the implementation of the EU satellite navigation programmes (EGNOS and GALILEO) as set in the financial programming.

Energy Policy - 2010 will see the adoption of a new energy plan for the period 2010-2014 and the further implementation of the new energy policy which aims at combating climate change and boosting the EU's energy security and competitiveness. 2010 will also be the first year of implementation of the Internal Energy Market Package and will be the first year of existence of the new Community regulatory agency (European Agency for the Cooperation of the Energy Regulators - ACER).

At the trialogue meeting of 2 April 2009 the European Parliament, the Council and the Commission agreed on the financing of energy projects as part of the European Economic Recovery Plan. EUR 3 980 million will be made available for the financing of energy projects under heading 1 A of the financial framework, of which EUR 2 000 million in 2009 and EUR 1 980 million in 2010. The financing of the 2010 amount is not yet secured.

Improving the quality of education and training

This sector represents 8,6% of the expenditure for the whole sub-Heading 1 A budget financing. In the PDB the Commission proposes a global amount of EUR 1.102,078 million.

The Lifelong Learning Programme(18) aims to contribute to the development of the European Union as an advanced knowledge society, with sustainable economic development, more and better jobs and greater social cohesion. In 2010, the programme Erasmus Mundus II will finance new categories of individual grants (to doctoral candidates and to European students who attend Erasmus Mundus Master courses). This sector covers also the European Institute of Innovation and Technology (EIT) and its Knowledge and Innovation Communities which will become operational.

Social policy agenda

This sector represents 1,5% of the expenditure for the whole sub-Heading 1 A budget financing. In the PDB the Commission proposes a global amount of EUR 190,170 million.

Under this sector the Commission intends to focus on three main areas: the integrated Programme for Employment and Social Solidarity (PROGRESS) supporting the implementation of the social policy agenda; sustain social dialogue, free movement of workers and studies and special reports in the social field; implement the European Year for Combating Poverty and Social Exclusion 2010.

In this sector of sub-Heading 1 A is included the European Globalisation Adjustment Fund (EGF)(19). As set out in the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management (IIA), it may not exceed EUR 500 million in any given year.

Other actions and Programmes

Under this voice of the sub-Heading 1 A are included the following actions: the reinforcement of Communications Policy and Network Security, the collection of statistics to provide key input for policy making and the Community Programme to support specific activities in the field of financial services, financial reporting and auditing(20).

This sector represents 3,3% of the expenditure for the whole sub-Heading 1 A budget financing. In the PDB the Commission proposes a global amount of EUR 423,840 million.

Table 2: Policy areas falling, totally or partly, under sub-heading 1 A: differences between Budget 2009 and PDB 2010 in commitments and payments      in EUR million

TITLE

Budget 2009: CA

Budget 2009:

PA

PDB 2010:

CA

PDB 2010:

PA

PDB difference CA

PDB difference PA

Title 01:

Economic and financial affairs

181,150

214,167

183,000

152,445

1%

-28,8%

Title 02:

Enterprise

577,891

515,956

690,333

541, 424

19,5%

4,9%

Title 04 -

Employment and Social Affairs (Sub-Heading 1 A only)(21)

218,526

190,068

229,920

198,080

5,2%

4,2%

Title 06:

Energy and Transport

4632,20

2446,725

2777,06

2764,765

-40%

13%

Title 08

Indirect Research

4649,18

4951,64

5156,26

4193,06

10,9%

-15,3%

Title 09

Information Society and Media

1350,97

1206,69

1466,29

1445,64

8,5%

19,8%

Title10:

Direct Research

370,84

365,720

383,32

391,547

3,4%

7,1%

Title 12:

Internal Market

9,20

9,14

14,80

12,60

60,9%

37,8%

Title 13

Regional Policy (Sub-heading 1 A only)

15,00

15,00

15,00

15,00

0%

0%

Title 15:

Education and Culture (Sub-heading 1 A only)

1803,36

1061,15

1149,19

1116,13

6,1%

5,2%

Title 24:

Fight against Fraud

20,50

16,30

21,60

16,40

5,4%

0,6%

Title 29:

Statistics

57,57

25,40

65,32

44,90

13,5%

76,8%

Heading 1 B

For this sub-heading ('cohesion for growth and employment') the PDB foresees an increase both in commitments (2%) and payments (4,1%) with respectively a total amount of EUR 49,382 billion in commitments and EUR 36,382 billion in payments.

While structural funds see only a modest increase in commitments (0,2 %), the increase in payments is considerably bigger (6,7%), which reflects the Commission's aim to focus on implementation in 2010, since all the operational programmes and management and control systems should be up and running. The trend is reverse in the Cohesion fund, where commitments are to grow by 9,6%, while payments decrease by 5,9%.

The PDB leaves a modest margin of EUR 12 million under the MFF ceiling of EUR 49,4 billion.

The 2010 budget still contains a bulk of payments for the programming period of 2000-2006 (EUR 5,45 billion, half of them for the Cohesion fund). Some EUR 6 million is even reserved for pre-2000 programmes.

Heading 2

Just as a clarification: consumer policy, human health and food safety ('consumer dimension') fall under heading 3 B.

Heading 2 continues to be the biggest heading with the proposed budget (commitments) of EUR 59 billion (EUR 58 billion in payments).

Commitments for compulsory expenditure increase by 5,7 %, and for non-compulsory expenditure decrease by 0,4 %. Payments for compulsory expenditure rise by 5,5 % compared to 2009, those for non-compulsory expenditure increase by 5,2 %.

The Commission proposes a considerable increase in spending on agriculture and rural development (05), environment (07), fisheries and maritime affairs (11) and parts of health and consumer protection (17). The proposed increase reaches 4,0% in terms of commitments and 10,5% in terms of payments compared to budget 2009.

The margin available would be then EUR 1,1 billion.

Agriculture and rural development

For Market related expenditure and direct aids are proposed EUR 43,3 billion, which is an increase of 6,4% compared to budget 2009. Rural development reaches a level of EUR 14 billion in commitments and EUR 13,4 billion in payments, which means that the level of commitments is slightly decreasing compared to budget 2009 (-1,9%) while the payments grow by almost 1/3 (i.e. by EUR 3,2 billion). Due to global market fluctuations, traditional spending on agriculture is increasing again in 2010, which can be seen in especially on budget lines on market interventions and direct aids for milk, butter and cream. The overall increase of direct aids is largely due to phasing-in of direct aids also for the new Member States.

Fisheries

The total proposed expenditure for fisheries policy, including international agreements, is EUR 960 million, of which European Fisheries Fund (EFF) and international fisheries agreements total EUR 930 million. Compared to budget 2009, the commitments for EFF increase by 2 % and for international agreements decrease by 5%. In payments, both areas of spending show a downward trend: EFF -14,3% and 'fisheries governance and international fisheries agreements' - 5,1%, largely due to fact that the budget 2009 contained considerable payment appropriations for the outstanding commitments of the programming period 2000-2006.

Environment

LIFE+ is the only financial instrument designed exclusively for the environment, covering a wide range of activities managed by the Commission and Member States. Several pilot projects and preparatory actions are also ongoing. Compared to budget 2009, the proposed spending is somewhat smaller (commitments EUR 307 million, -3,2%). The reduction of payments is considerable, -37,7%. The Commission justifies these figures by referring to the increase adopted by the budgetary authority to the 2009 budget and the delays of implementation following the late adoption of the programme. In the light of the enormous challenges posed by climate change and many other environmental threats, this downward trend merits further examination.

Nevertheless, line 07 03 12 "Climate change actions" is deleted (20 million).

Plant and animal health

The proposed commitments for plant and animal health measures are 17,4% bigger than in the 2009 budget, totalling EUR 372 million, due to an increase of funding of animal disease eradication and monitoring programmes (+ EUR 52 million).

Heading 3 A

The rapporteur welcomes the increase of 13,5% in commitment appropriations, to an amount of EUR 980,2 million (leaving a margin of EUR 44,8 million), which seems in line with the MFF. Payments also increase by 16,6 %, to EUR 720 million. This increase sends a very positive message to citizens concerning such a sensitive area.

However, there is great disparity between the evolution of the three general programs: while "Solidarity and Management of Migration Flows" will increase by 6,3%, Security and Safeguarding Liberties will increase by 15,5%, Fundamental Rights and Justice will decrease by -5,4%.

Solidarity and Management of Migration Flows (+6,3%)

In "Solidarity and Management of Migration Flows", the External Borders Fund will increase by some 12% (to EUR 207,5 million) and the European Return Fund will increase by more than 24,4% (to EUR 83 million), while the European Refugee Fund (ERF) will decrease by 15,6% (to EUR 82,5 million).

The decrease in the funding of ERF is only partially explained by the creation of the European Asylum Support Office (EASO), as the EASO is granted only EUR 5,35 million in the PDB; Your rapporteur would like to receive from the Commission further explanations for such a huge decrease, as the EP had precisely increased the level of the funding of the ERF by EUR 10 million in the budgetary procedure 2009 and the level of implementation by the end of 2008 reached 99,17%.

There is also an increase in the funding of European Fund for the Integration of Third-Country Nationals (+8,2%)

The decrease in the funding of VIS (from EUR 35,7 million to EUR 21 million) seems explicable by the completion in 2009 of the system. In parallel, the diminution in the funding of SIS II (from EUR 39,3 million to EUR 35 million), will stay under close scrutiny, as their evolution is far from being clear.

The PDB 2010 maintains the operational financing to FRONTEX at the same level as the one of the budget 2009 (EUR 55 million, after EP added 10% million to the initial amount proposed by the Commission); explanations are required for the fact that payments suffer a decrease of almost 50% (from EUR 55 million to EUR 22 million).

Security and Safeguarding Liberties (+15,5%)

Your rapporteur welcomes the increases in Prevention, Preparedness and Consequence Management of Terrorism (+5%) and Prevention of and Fight against Crime (more 19%) and also the integration of EUROPOL in the budget of the EU consecutive to its transformation into a decentralised agency of the EU and notes its important funding (EUR 79,7 million for 2010); affirms its intention of exercising an adequate scrutiny over the funding and of this agency as well as over its budgetary and administrative management

Fundamental Rights and Justice (-5,4%)

The decrease in the funding of this policy area (line 18 06 06) is mainly due to the decrease in the funding of the program Criminal Justice (EUR 26 million in commitments, which means EUR 4,9 million less), which matches the financial programming and corresponds to the reduction of needs concerning some of the technical aspects of the program that were meanwhile achieved.

The programs Fundamental Rights and Citizenship (line 18 04 06) (-2,8% in commitments) and Daphne (line 18 04 07) (-1% in commitments) also suffer decreases compared to 2009's budget.

The increase in the funding of EUROJUST (+34% to a total of EUR 30,2 million) seems to be due to a increasing in the role of coordination of the agency in the cooperation between Member States; the implementation of this reinforced financing will be closely monitored

Heading 3 B

Covering issues of key concern to the citizens, heading 3 B includes part of public health and consumer protection (17), educational and cultural programmes (15) the civil protection instrument and parts of the policy area communication (16).

The PDB 2010 has decreased heading 3 B both in commitment and payment appropriations by 2% in CA and 7,4% in PA comparing to the 2009 budget figures.

It foresees respectively EUR 649,26 million in commitments and EUR 639,76 million in payments, which correspond to 0,47% of the total budget (PDB 2010 figures) in commitments and to 0,52% in payments, which leaves a margin of EUR 18,735 million under the MFF ceiling of EUR 668 million for 2010.

According to the PDB 2010, the five key expenditure items under this sub-heading will be distributed in the following way:

-    Fostering European culture and diversity: EUR 221,564 million, which includes Culture, Youth in Action, Europe for Citizens and Media 2007 multiannual programmes, certain Information Society and Media strands and Sports.

-    Communicating European policy and better connecting with citizens: EUR 93,350 million

-    Ensuring access to basic goods and services: EUR 73,390 million, which includes Public Health Programme and partly the Consumer Protection policy area

-    Civil Protection Instrument: EUR 18,550 million

-    Solidarity Instrument: European Union Solidarity Instrument (EUSF) which is a financial mechanism intending to allow financial assistance in the event of major disasters occurred on the territory of a Member State or a candidate country. Up to EUR 1 Billion is available annually. This amount is not included in the ceilings of the financial framework nor in the PDB and is mobilised if necessary through an amending budget during the year.

-    Decentralised Agencies: European Centre for Disease Prevention and Control (ECDC) and European Food Safety Authority (EFSA): EUR 125,296 million

- Heading 3 B covers the following multiannual programmes (2007-2013): Public Health, Consumer Protection, Culture 2007, Youth, Media 2007, Citizen and Civil protection Financial Instrument. Only two of these programmes have been increased both in commitments and payments by the PDB 2010: Culture 2007 (+3,7% in CA and +4,9% in PA) and Media 2007 (+4,2% in CA and +15,1% in PA ) .

Other programmes (compared to the budget 2009):

o Youth in Action: 0% in CA and +5,2% in PA

o Europe for Citizens programme: +0,1% in CA and -16% in PA

o Programme of Community action in field of consumer policy: -2,6% in CA and +13%

o Programme of Community action in field of health (2008-2013): -2,8% in CA and +60% in PA

o Civil Protection Financial Instrument - 2,7% in CA and -15,8% in PA.

Your Rapporteur wishes to point out the following:

- Within heading 3 B, all policy areas have been decreased, except "Information Society", which rises by 3,8% in commitments and 8,4% in payments. Note: the greatest part of this policy area is funded under the heading 1 A of the MFF, also increased by the PDB.

- Important decreases in payments for Environment, Communication, and Health and Consumer protection policy areas (respectively by: -18,6%, -11% and -10,9% compared to 2009 figures)

- As of 2010 the Support for the running costs of the Platform of European Social Non-Governmental Organisations will be provided from the budget line 15 06 66 (Europe for Citizens programme), instead of 04 04 09 as it was the case in 2008 and 2009 budgets. The Commission states that this change complies with the specific objectives of the 'Europe for Citizens' programme, supporting the development of civil society at the EU level, including the attribution of structural support to designated organisations.

In 2008 and 2009 EUR 0,68 million were attributed to the European Social Platform from the well implemented budget line 04 04 09; when the PDB 2010 only slightly increased the budget line 15 06 66 in commitments by 0,1% and decreased it by -16% in payments.

Heading 4

General aspects

- Commitments appropriations are proposed at EUR 7,92 billion, compared to 8,10 billion in 2009; this represents a decrease of 2.3%. Payments are budgeted at EUR 7,66 billion, a decrease of EUR 0,66 billion (-7.9%).

This peculiar situation has to be understood in the light of the financing of the Food facility instrument, adopted in December 2008, but whose appropriations will be mainly financed on 2009 Budget (57% of commitments will be engaged during current year). As a reminder, the budgetary authority decided to allocate an envelope of EUR 1 billion to the financing of this instrument.

Therefore, for the sake of comparison between 2009 Budget (including amending Budgets) and PDB 2010, one can consider that, when excluding the financing of the Food facility, PDB 2010 proposes an increase of 1,8% in commitments appropriations. The payments would still decrease by 7,1% compared to 2009 budget due to the ending of several completion budget lines.

- MFF providing a ceiling of EUR 7,89 billion for 2010, 2010 PDB has a margin of EUR 220,8 million (Emergency Aid Reserve of EUR 248.9 million not being taken into account, as provided for by the IIA of 17 may . The rapporteur wishes to stress that this relatively limited margin (about 2,9% of the Heading) will be put under high pressure since the Commission announced that proposed appropriations for Palestine will be increased in the course of the budgetary procedure (Amending Letter to be expected in September 2009), and that Georgia, Kosovo, Cuba reunification process in Cyprus and climate change are outstanding issues that need to be addressed via the use of the margin. As a reminder, pilot projects and preparatory actions under heading 4 will also be financed within this margin.

Policies and instruments

- CFSP budget (Chapter 19 03) is significantly increased in PDB 2010 (+ EUR 39 million, for a total amount of EUR 281,5 million, which represents an increase of 15,9% in commitments) in order to finance EU Monitoring Mission in Georgia (19 03 01) which is expected to be prolonged in 2010.

- For European Neighbourhood Policy and cooperation with Russia EUR 1,55 billion are proposed, a drop of EUR 67 million (- 4,2%). Your rapporteur wishes nevertheless to highlight that:

           - ENPI East sees a substantial increase of EUR 55 million (+ 13,5%) in commitments appropriations, mainly due to EU political priorities towards Georgia and the Eastern Partnership

           - ENPI Palestine is proposed, as every year, an unrealistic financial envelope of EUR 175 million (to be compared with EUR 300 million in 2009 Budget); even though the Commission mentioned that it will likely request adapted and more realistic appropriations in the course of the 2010 budgetary procedure; your rapporteur points out that such a two-steps approach does not help comprehensive and global assessment of the real needs in heading 4 and deeply regrets that the Commission reiterates is on a yearly basis. This net decrease in appropriations for Palestine leads to the global mentioned decrease of ENPI envelope.

           - ENPI South is slightly increased (+ EUR 3 million)

- in 2009 Budget, European Parliament created a new budget line on Aid for rehabilitation and reconstruction of Georgia (line 19 08 01 07) in order to identify clearly European budgetary and financial support to this country in the aftermath of the August 2008 conflict in the region; your rapporteur is deeply unsatisfied to note the reluctance of the Commission to insert appropriations on this specific line (p.m.) despite the clear political impetus given by the Parliament.

- Following agreement during November 2008 conciliation, Instrument for Stability has been redeployed to finance Food facility by EUR 240 million. In order to mitigate the consequences of this redeployment and keep an increase in appropriations for IfS, the Commission proposes that an amount of EUR 100 million is pre-financed by back-loading spending of other envelopes (DCI, IPA and ENPI); these contributions will be compensated back in 2011-2013 from IfS.

- For the Instrument for Pre-accession Assistance the PDB allocates an overall envelope of EUR 1,593 billion, an increase of 4,9% in commitments (whereas the payments decrease by more than 22%), half of them being programmed for Transition and Institution Building Assistance.

- Three new budget lines (19 09 03, 19 10 04 and 21 06 06) are created to reflect the proposal included in the framework of the mid term review of financial instruments for external actions presented by the Commission on 21 April 2009: the Instrument for Cooperation with Industrialised Countries (ICI) will be amended in order to allow the financing of actions other than development assistance in countries covered by the DCI. This action has a proposed financial envelope of EUR 176 million for the period 2010-2013 (partly redeployed from DCI), and EUR 34,5 million in commitments budgeted in 2010 PDB on the top of the EUR 23,9 million already programmed funds.

- As far as the Development Cooperation Instrument is concerned, a slight increase has been proposed by the Commission (+ 1,7%, for a total amount of EUR 2,414 billion); in the PDB, two of the several priorities under DCI have been identified for potential further fine-tuning in commitments in the course of the budgetary procedure: EU assistance to Afghanistan and Pakistan, and supporting measures in main ACP banana exporting countries. Your rapporteur warmly supports the Commission's intention to reassess the needs for assistance to Afghanistan.

- As agreed during November 2008 conciliation, the bulk of appropriations for Food facility was committed in 2009 (EUR 262 million in 2008, EUR 568 million in 2009, and EUR 170 million in 2010). Line 21 02 03 is allocated with EUR 162,7 million (operational spending) and line 21 01 04 05 with EUR 7,3 million (administrative expenditure).

- European Instrument for Democracy and Human Rights is decreased by 1,2% in commitments (to EUR 155,5 million), but increases in payments appropriations (+6,7%, for a total of EUR 157,8 million).

- The Commission proposes a clear increase of 8,1% (from EUR 99 million to EUR 107 million) for Macro Financial Assistance partly due to finance potential actions of the EU to mitigate the effects of the financial and economic crisis in eligible third countries, and an increase of 3% of commitments appropriations for Humanitarian Aid (from EUR 777 million to EUR 800,5 million) for the provision of first assistance to countries affected by the consequences of natural disasters.

Heading 5

The evaluation of the appropriations needed for 2010 is based on all the Institutions' individual "draft statement of estimates".

Commitments and payments for Administrative Expenditure increase by 2,1 %, with commitments at EUR 7.857,8 million and payments at EUR 7.858,3 million leaving a margin of EUR 230,197 million. The Commission puts emphasis on the fact that its share of the administrative budget only increases by 0,9 %.

The Commission states that the margin of EUR 230,197 million is expected to be sufficient to cover the expressed needs in 2010. However, the Commission cannot foresee, for example, what the final budget of the Parliament or the other Institutions might be. There is always some uncertainty as to the margin calculations.

In heading 5, a sufficient margin is normally considered important in order to cater for variations of the annual salaries and pension adaptations (inflation) which may risk to be higher than the fixed 2 % deflator applied to the ceiling of heading 5.

Human resources

In the ‘screening’ of human resources in early 2007, the Commission committed to meeting all staffing needs up to 2013 under constant resources once the last enlargement posts for Bulgaria and Romania have been phased in.

As the last new posts related to the latest enlargement to Bulgaria and Romania were authorised in the 2009 budget, the 2010 Preliminary Draft Budget is in line with this commitment: it contains no request for new posts.

However, as the last 250 new posts for the Commission in 2009 are now budgeted for a full year, there will still be an increase in the amount of salaries compared to this year.

The Commission states that an unprecedented effort of internal redeployment will take place, notably to reinforce the services in charge of the management and follow up of the financial and economic crisis and the implementation of the European Economic Recovery Plan (EERP). The EP could look at this process more in detail later in the procedure.

Finally, your rapporteur would request more information as concerns ever increasing costs for:

- security costs in delegations.

- increasing cost of energy and maintenance of the buildings

- the works for a second childcare facility in Brussels

- increase of expenditure for IT services.

- an increase of costs for EPSO by 14% , from EUR 27 million to EUR 31 million.

WORKING DOCUMENT NR 5 ON BUDGETARY PROCEDURE 2010 – FIRST COMMISSION REPORT ON THE IMPLEMENTATION OF PILOT PROJECTS AND PREPARATORY ACTIONS 2009

1. General remarks

1.      Pilot Projects and Preparatory Actions (PP/PA) are traditionally parliamentary initiatives. The European Parliament first tried using pilot projects and preparatory actions in 1975.(22) Today they provide the Parliament with the possibility of paving the way for new policies and activities that enrich the Union's actions and which might lead to adoption of legal acts setting out new EU activities and programmes.

2.      Your rapporteurs for Budget 2009 and 2010 stress that it remains the prerogative of Parliament to adopt, within the limits of the IIA, any PP / PA it considers an added-value for the European citizens, and that, despite possible reservations, the Commission is obliged to do everything in its power to successfully implement the projects / actions adopted by the budgetary authority. A clear picture of the desired nature of the PP / PA followed by a profound discussion between the institutions on possible obstacles for the execution and how they could be overcome would be in the interest of all actors.

PP/PAs in the Financial Regulation (FR)

3.     The legal base for PP/PA is Article 49, paragraph 6 of the Financial Regulation(23) and Article 32 of the Implementing rules(24). They describe the exceptions to the rule (Article 49 par. 1 FR) that appropriations can only be entered in the EU budget if a basic legal act has been adopted previously. For PP/PA, a budgetary decision comes first and may only in a second step lead to a corresponding legislative decision (Article 49, par. 6 FR).

4.     According to the Financial Regulation, pilot schemes (or Pilot "projects") are "of an experimental nature designed to test the feasibility of an action and its usefulness. The relevant commitment appropriations may be entered in the budget for not more than two successive financial years."

5.     Preparatory actions are defined as "designed to prepare proposals with a view to the adoption of future actions. The preparatory actions are to follow a coherent approach and may take various forms. The relevant commitment appropriations may be entered in the budget for not more than three successive financial years. The legislative procedure must be concluded before the end of the third financial year."

PP / PA in the Interinstitutional Agreement

6.     Apart from the Financial Regulation, the second important text in connection with PP / PAs is the Interinstitutional Agreement of 17 May 2006 which further defines the framework.

7.     Point D of Annex II of the IIA stipulates that "in order for the Commission to be able to assess in due time the implementability of amendments envisaged by the budgetary authority which create new preparatory actions/pilot projects or prolong existing ones, both arms of the budgetary authority will inform the Commission by mid-June of their intentions in this regards, so that a first discussion may already take place at the conciliation meeting of the Council's first reading.

8.     The IIA also includes some clear budgetary ceilings for PP/PA: Furthermore, the institutions agree to limit the total amount of appropriations for pilot schemes to EUR 40 million in any budget year. They also agree to limit to EUR 50 million the total amount of appropriations for new preparatory actions in any budgetary year, and to EUR 100 million the total amount of appropriations actually committed for preparatory actions.

9.      Your rapporteur for the year 2010 is fully aware of this obligation and regrets that it was not possible to respect this provision by the IIA, due to the elections of a new Parliament on 7 June. A list with PP/PA should be communicated as soon as possible after the constituent meeting in September 2009.

2. Existing (in Budget 2009) PP/PAs

10.    In PDB 2010, as PDB 2009, most existing Pilot Projects and Preparatory Actions have no commitment appropriations. Therefore, the majority of ongoing Pilot Projects and Preparatory Actions have only payment appropriations.

11.    The European Commission in its PDB 2010 has attributed only to three Preparatory Actions commitment appropriations:

02 02 11 - GMES operational services (EUR 5 mio.)

11 09 01 - Maritime Policy (EUR 4,1 mio.)

15 06 11 - Preparatory Action in the Field of Sport (EUR 1,5 mio.)

12.    The European Commission has not attributed to any single Pilot Project commitment appropriations in the PDB 2010.

Furthermore, four ongoing Pilot Projects and Preparatory Actions do not even have payment appropriations:

13 03 22 Pilot Project - Erasmus for elected local and regional representatives

07 03 16 Pilot Project - Development of prevention activities to halt desertification in Europe

17 02 03 Preparatory Action - Monitoring measures in the filed of consumer policy

19 06 07 Pilot Project - Support for surveillance and protection measure for Community vessels sailing through areas where piracy is a threat".

13.    The details of the figures can be consulted in the attached table. The total amount currently as proposed for "existing" Pilot Projects is EUR 0.- in CA and EUR 28,23 mio in PA, for "ongoing" Preparatory actions it is EUR 12,6 mio. in CA and EUR 62,444 mio. in PA. As PP/PAs are a prerogative of the EP, the Commission does not propose any new Pilot projects.

3. Conclusions

14.    Ultimately, it is the overall ceilings of the MFF 2007 - 2013 that constitute the framework within which all PP / PA have to fit. At some stage, Parliament might not be able to adopt PP / PA up to the maximum level of financing permitted by Annex II, point D of the IIA (EUR 40m for PP, EUR 100m for PA, per annum) simply because there will not be an equivalent margin left under the relevant MFF heading.

15.    All EU activities newly introduced into the budget will decrease the available margins under the MFF. Your 2010 Budget rapporteur will therefore have to evaluate whether the margins left under the different headings will allow Parliament's priorities to be sufficiently financed at all.

16.    Your 2009 and 2010 rapporteurs would like to draw the attention to the fact that the availability of funds for new PP and PA is directly linked to EP's wishes to continue financing of existing PP and PA. It is therefore of the utmost importance, at an early stage in the preparations for the budgetary procedure 2010, to become aware of any projects / actions that might not deserve continuation in 2010.

17.    The success of Parliament concerning Pilot Projects and Preparatory Actions should not be measured in the number of PP / PA that become adopted in plenary. Your rapporteurs would rather advise to concentrate on the quality, executability and added value of the PP / PA proposed which might be increased if the resources available for each project / action do not reach a critical amount.

18.    Your rapporteurs hope that the Committee on Budgets, in close cooperation with the other EP committees, will be able to arrive at a list of Pilot Projects and Preparatory Actions for the budgetary procedure 2010 as soon as possible.

                                                                                              Status

 Budget Line and Title                                                          2008   2009   2010                                    2009 Budget   2010 Preliminary Draft Budget

                                                                                                            PILOT PROJECTS

 1a: Competitiveness for growth and employment

 02 02 03 01                                                                   CPP     CPP     CPP                                       p.m.                       p.m.  p.m.  p.m.

 Consolidation of the internal market — Pilot project for

 cooperation and cluster-building among small and medium-

 sized enterprises (SMEs)

 02 02 03 03                                                                   CPP     CPP     CPP                                       p.m.                  750.000  p.m.  p.m.

 Pilot project — Transfer of expertise through mentoring in

 small and medium-sized enterprises (SMEs)

 02 02 03 04                                                                   PP2     CPP     CPP                                       p.m.                1.000.000  p.m.  850.000

 Erasmus for Young Entrepreneurs

 02 02 05 01                                                                   CPP     CPP     CPP                                       p.m.                  180.000  p.m.  p.m.

 Enlargement programme for small and middle-sized

 enterprises (SMEs)

 02 02 05 05                                                                   PP2     CPP     CPP                                       p.m.                  560.000  p.m.  p.m.

 Pilot project — Measures to promote cooperation and

 partnerships between micro, small and medium-sized

 enterprises

 02 02 06                                                                        CPP     CPP     CPP                                       p.m.                  131.000  p.m.  p.m.

 Pilot project — Regions of knowledge

 02 02 10                                                                                           xx/??                                      p.m.                       p.m.  p.m.  p.m.

 Pilot project — Technology transfer

 02 02 12                                                                        PP1     PP2     CPP                                       p.m.                  250.000  p.m.  p.m.

 Pilot project — Facilitating access to insurance by self-

 employed builders and small building firms so as to

 stimulate innovation and the promotion of eco-

 technologies in the European Union

 04 03 09                                                                                  PP1     PP2                                1.000.000                1.000.000  p.m.  700.000

 Pilot project — Working and living conditions of posted

 workers

 04 04 05                                                                                           xx/??                                          -                       p.m. -  -

 Pilot project — Mainstreaming of disability actions: follow-

 up initiative to the European Year of People with

 04 04 10                                                                        PP1     PP2     CPP                                       p.m.                  500.000  p.m.  500.000

 Pilot project — Accompanying workers during industrial

 change

 04 04 11 Pilot project — Preventing elder abuse                                   PP1     PP2                                1.000.000                1.000.000  p.m.  500.000

                                                                                              Status

 Budget Line and Title                                                          2008   2009   2010                            2009 Budget                                        2010 Preliminary Draft Budget

06 04 07                                                                       PP2     CPP     CPP                                       p.m.                1.500.000  p.m.  1.500.000

 Pilot project — Energy security — Biofuels

 06 04 12                                                                        PP1     PP2     CPP                                       p.m.                  600.000  p.m.  450.000

 Pilot project — European Framework programme for the

 development and exchange of experience on sustainable

 urban development

 06 07 02                                                                        CPP     CPP     CPP                                           -                1.655.500 -  570.000

 Pilot project — Security on the trans-European road

 15 02 02 06                                                                   CPP     CPP     CPP                                           -                       p.m. -  -

 Pilot project — Individual mobility of upper-secondary

 15 02 28                                                                                           xx/??                                          -                       p.m. -  -

 Pilot project — European Neighbourhood Policy

 scholarships at the College of Europe

 15 02 29                                                                        PP2     CPP     CPP                                           -                  400.000 -  1.200.000

 Pilot project — Cooperation between European Institutes

 of Technology

 15 02 30                                                                        PP1     PP2     CPP                                       p.m.                       p.m.  p.m.  p.m.

 Pilot project — European Neighbourhood Policy —

 Enhance education through scholarships and exchanges

 17 03 08                                                                        PP1     PP2     CPP                                1.000.000                1.500.000  p.m.  600.000

 Pilot project — New employment situation in the health

 sector: best practices for improving professional training

 and qualifications of healthcare workers and their

 remuneration

Total Category 1a                                                                                                                     3.000.000               11.026.500 0  6.870.000

1b: Cohesion for growth and employment

 13 03 21                                                                                  PP1     PP2                                5.000.000                5.000.000  p.m.  2.500.000

 Pilot project — Pan-European coordination of Roma

 integration methods

 13 03 22                                                                                  PP1     PP2                                2.000.000                2.000.000  p.m.  p.m.

 Pilot Project — Erasmus for elected local and regional

 representatives

                                                                                              Status

 Budget Line and Title                                                          2008   2009   2010                            2009 Budget                                        2010 Preliminary Draft Budget

13 03 23                                                                                   PP1     PP2                                2.000.000                2.000.000  p.m.  1.000.000

 Pilot Project — Enhancing regional and local cooperation

 through the promotion of EU regional policy on a global

 scale

                                                                                        Total Category 1b                             9.000.000                9.000.000 0  3.500.000

                                                                                                           Status

 Budget Line and Title                                                          2008   2009   2010                                    2009 Budget   2010 Preliminary Draft Budget

                                                                                                            PILOT PROJECTS

 2: Preservation and management of natural resources

 05 01 04 08                                                                   PP2     CPP     CPP                                       p.m.                       p.m.  p.m.  p.m.

 Sustainable agriculture and soil conservation through

 simplified cultivation techniques

 05 08 10                                                                                  PP1     PP2                                1.500.000                1.500.000  p.m.  p.m.

 Pilot project — Assessing end-user costs of compliance

 with EU legislation in the fields of environment, animal

 welfare and food safety

 07 03 11                                                                        PP2     CPP     CPP                                           -                       p.m. -  900.000

 Pilot project — Forest protection and conservation

 07 03 15                                                                        PP1     PP2     CPP                                2.000.000                2.300.000  p.m.  960.000

 Pilot project — Sulphur dioxide and nitrogen oxide emission

  trading in the Baltic Sea

 07 03 16                                                                                  PP1     PP2                                1.000.000                1.000.000  p.m.  p.m.

 Pilot Project — Development of prevention activities to

 halt desertification in Europe

 11 09 02                                                                        PP1     PP2     CPP                                2.000.000                2.000.000 -  2.400.000

 Pilot project — Networking and best practices in maritime

 policy

 17 01 04 04                                                                                       xx/??                                      p.m.                       p.m.  p.m.  p.m.

 Pilot study — risk financing model for livestock epidemics

 — Expenditure on administrative management

 17 01 04 06                                                                   PP1     PP2     CPP                                       p.m.                       p.m.  p.m.  p.m.

 Pilot project — Improved methods for animal-friendly

 production

 17 03 09                                                                                  PP1     PP2                                4.000.000                4.000.000  p.m.  1.000.000

 Complex research on Health, Environment, Transport and

 climate change (HETC) - improvement of indoor and

 outdoor air quality

                                                                                         Total Category 2                            10.500.000               10.800.000 0  5.260.000

 3a: Freedom, security and justice

 18 04 09                                                                        PP1     PP2     CPP                                       p.m.                  250.000  p.m.  p.m.

 European-level introduction of a rapid alert mechanism for

 child abductions or disappearances

 18 05 06                                                                        CPP     CPP     CPP                                       p.m.                2.500.000  p.m.  1.000.000

 Completion of fight against terrorism

                                                                                              Status

 Budget Line and Title                                                          2008   2009   2010                                    2009 Budget   2010 Preliminary Draft Budget

                                                                                                            PILOT PROJECTS

 3a: Freedom, security and justice

 18 06 08                                                                        PP1     PP2     CPP                                       p.m.                  250.000 -  -

 Pilot project — Impact assessment of legislative measures

  in contract law

                                                                                        Total Category 3a                                        0                3.000.000 0  1.000.000

 3b: Citizenship

 07 04 02