Procedure : 2014/2035(BUD)
Document stages in plenary
Document selected : A8-0018/2014

Texts tabled :

A8-0018/2014

Debates :

PV 21/10/2014 - 15
CRE 21/10/2014 - 15

Votes :

PV 22/10/2014 - 4.1

Texts adopted :

P8_TA(2014)0035

REPORT     
PDF 181kWORD 96k
14 October 2014
PE 537.391v03-00 A8-0018/2014

on the Council position on Draft amending budget No 2/2014 of the European Union for the financial year 2014, Section III – Commission

(12300/2014 – C8-0160/2014 – 2014/2035(BUD))

Committee on Budgets

Rapporteur: Gérard Deprez

PR_BUD_DABam

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION
 EXPLANATORY STATEMENT
 RESULT OF FINAL VOTE IN COMMITTEE

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

on the Council position on Draft amending budget No 2/2014 of the European Union for the financial year 2014, Section III – Commission

(12300/2014 – C8-0160/2014 – 2014/2035(BUD))

The European Parliament,

–       having regard to Article 314 of the Treaty on the Functioning of the European Union and Article 106a of the Euratom Treaty,

–       having regard to Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002(1) (hereinafter referred to as "Financial Regulation"), and in particular Article 41 thereof,

–       having regard to the general budget of the European Union for the financial year 2014, as definitively adopted on 20 November 2013(2),

–       having regard to Council Regulation (UE, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for years 2014-2020(3),

–       having regard to the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management(4) (hereinafter referred to as "IIA"),

–       having regard to Council Decision 2007/436/EC, Euratom of 7 June 2007 on the system of the European Communities' own resources(5),

–       having regard to Draft amending budget No 2/2014, which the Commission adopted on 15 April 2014 (COM(2014)0234),

–       having regard to the position on Draft amending budget No 2/2014 which the Council adopted on 14 July 2014 and forwarded to Parliament on 12 September 2014 (12300/2014 – C8-0160/2014),

–       having regard to Rule 88 of its Rules of Procedure,

–       having regard to the report of the Committee on Budgets (A8-0018/2014),

A.     whereas Draft amending budget No 2/2014 aims to enter in the 2014 budget the surplus from the 2013 financial year, amounting to EUR 1 005 million;

B.     whereas the main components of that surplus are a positive outturn on income of EUR 771 million, an under-spending in expenditure of EUR 276 million, and a negative exchange rate difference of EUR 42 million;

C.     whereas on the income side the increase comes mainly from fines and interest on late payments (EUR 1 331 million), while the amount of own resources actually collected as compared to those budgeted is decreasing (- EUR 226 million) and revenue from surpluses, balances and adjustments is also in decline (-EUR 360 million);

D.     whereas on the expenditure side the underimplementation of appropriations for 2013 (EUR 107 million) and for 2012 (EUR 54 million) is particularly low, is linked to somehow unpredictable factors and cannot be considered as caused by decreased absorption capacity;

E.     whereas actually all available indicators point to the fact that there was a shortage of payment appropriations in both 2012 and 2013 budgets;

F.     whereas Article 18 of the Financial Regulation provides that any discrepancy with the estimates, to be entered in the Union's budget, shall be the sole subject of this amending budget;

1.      Takes note of Draft amending budget No 2/2014 devoted solely to the budgeting of the 2013 surplus, for an amount EUR 1 005 million, in accordance with Article 18 of the Financial Regulation; notes the Council position on Draft amending budget No 2/2014;

2.      Reminds that the adoption of this Amending budget No 2 will reduce the share of the GNI contribution from Member States to the EU budget by EUR 1 005 million and therefore partly compensate their contribution to the financing of Amending budget No 3 (EUR 3 170 million additional own resources needed); highlights therefore its intention to carry on the procedure for the adoption of Draft amending budget No 2 in parallel with the negotiations on Draft amending budget No 3, concerning the mobilisation of additional payment appropriations, and Draft amending budget No 4, which concerns the revision of the forecast of Traditional Own Resources, other revenue and making definitive some fines thus providing additional EUR 2 059 million of own resources that could further reduce the needs for additional appropriations from Draft amending budget No 3;

3.      Points out that if Draft amending budgets No 2, 3 and 4 are adopted unamended, this would imply an overall budgetary impact of only EUR 106 million additional GNI contributions that have to be made available by the Member States in order to ensure enough payment appropriations in 2014 to cover the Union's existing legal obligations;

4.      To maintain the political and procedural link between Draft amending budgets No 2, 3 and 4, decides to amend the Council position on Draft amending budget No 2/2014 as shown below;

5.      Instructs its President to forward this resolution, together with Parliament’s amendment, to the Council, the Commission and the national parliaments.

Draft amendment  1 (multiple amendment)

General Statement of Revenue

Chapter 1 4 — Own resources based on gross national income pursuant to Article 2(1)(c) of Decision 2007/436/EC, Euratom

Figures:

 

Budget 2014

Draft amending budget No 2

Council position

Difference

New amount

1 4 0

99 767 305 073

- 1 005 406 925

- 1 005 406 925

1 005 406 925

100 772 711 998

Total

99 767 305 073

- 1 005 406 925

- 1 005 406 925

1 005 406 925

100 772 711 998

Section III - Commission

Title 40 Reserves

Creation of new line 40 04 01 - Reserve for additional payment needs

Figures:

 

Budget 2014

Draft amending budget No 2

Council position

Difference

New amount

40 04 01

-

-

-

1 005 406 925

1 005 406 925

Total

-

-

-

1 005 406 925

1 005 406 925

Remarks:

The appropriations entered in this article are to be used to cover additional payment appropriation needs as identified by the Commission in DAB 3.

Justification:

Given the huge pressure on 2014 payments and the reinforcements requested by Commission in DAB 3/2014, it is proposed that the amount of the surplus for the year 2013 is used to fund a newly created line 40 04 01 "Reserve for additional payment needs" on the expenditure side of the budget, instead of to reduce the GNI-based own resources. If DAB 3/2014 is adopted unamended by Council, this amendment will be withdrawn.

(1)

OJ L 298, 26.10.2012, p. 1.

(2)

OJ L 51, 20.2.2014, p. 1.

(3)

OJ L 347, 20.12.2013, p. 884.

(4)

OJ C 373, 20.12.2013, p. 1.

(5)

OJ L 163, 23.6.2007, p. 17.


EXPLANATORY STATEMENT

Commission's proposal

On 15 April 2014 the Commission presented its Draft amending budget No 2/2014 on the surplus of the implementation of budget year 2013. It was proposed that a surplus of 1 005 million EUR be entered in the EU budget for 2014, thus reducing by the same amount the contributions of the Member States. This total amount is by EUR 18 million lower than the surplus budgeted in the 2013 budget (EUR 1 023 million).

The main components of that surplus are a positive outturn on income of EUR 771 million, an under-spending in expenditure of EUR 276 million, and a negative exchange rate difference of EUR 42 million,

On the income side, the main elements are own resources, contributions and refunds linked to EU policies and interests on late payments and fines (EUR 1 331 million). It is interesting to note, that compared to the revenue surplus in 2012, in 2013 there is a negative surplus in own resources and the predominant source of this surplus comes from fines and late interest.

The outturn of EUR 276 million on the expenditure side comes from EUR 107 million underimplementation of appropriations in 2013 and EUR 54 million underimplementation in 2012, however not due to decreased absorption capacities in these years but due to the year-end budgeting rules. In fact, both budgetary years 2012 and 2013 have shown a shortage of payment appropriations.

Rapporteur's proposal

At the moment, there are three DABs proposed by the Commission for budget 2014:

•   DAB 2/2014 (from 15 April 2014)

DAB 2/2014 relates to the surplus for budgetary year 2013.

The total amount of surplus resulting from the implementation of budget 2013 to be entered in the 2014 budget is EUR 1 005.4 million and comes mostly from fines and interest on late payments.

Net budgetary impact: EUR – 1 005.4 million own resources needed

•   DAB 3/2014 (from 28 May 2014)

DAB 3/2014 provides a revision of the revenue forecasts for 2014 (EUR 1 568 million additional revenue, most of which are new fines, for 1 417 million) and at the same time calls for addtional EUR 4 738.1 million payment appropriations coming from the mobilisation of the Contingency Margin for the amount of EUR 4 027 and using the full margin between the approved level of payment appropriations and the ceiling for 2014, which amounts to EUR 711 mio.

Net budgetary impact: + EUR 3 170.1 million additional own resources needed

•   DAB 4/2014 (from 09 July 2014)

DAB 4/2014 provides further revision of the TOR and other revenue forecast for 2014 and brings up the expected level of own resources by EUR 2 059 million. Additionally it reduces expenditure by EUR 248 460 in both commitment and payment appropriations because a new European Data Protection Supervisor could not be appointed. It also changes the breakdown of contributions between Member States, on the basis of updated macroeconomic data.

Net budgetary impact: - EUR 2 059.2 million own resources needed

If DABs 2, 3 and 4 are taken all together, the net budgetary impact is only EUR 105.7 million additional own resources required:

This table also shows that the additional national contributions required (13 - VAT and 14 – GNI own resources), which may be of interest for Council, amount to some 750 million, an amount to be put in relation with the 4.7 billion required in payments.

To maintain the political and procedural link between the three DABs, your Rapporteur proposes the introduction of the following amendment to Council's position on DAB 2/2014:

Draft amendment      1 (multiple amendment)

General Statement of Revenue

Chapter 1 4 — Own resources based on gross national income pursuant to Article 2(1)(c) of Decision 2007/436/EC, Euratom

Figures:

 

Budget 2014

Draft amending budget No 2

Council position

Difference

New amount

1 4 0

99 767 305 073

- 1 005 406 925

- 1 005 406 925

1 005 406 925

100 772 711 998

Total

99 767 305 073

- 1 005 406 925

- 1 005 406 925

1 005 406 925

100 772 711 998

Section III - Commission

Title 40 Reserves

Creation of new line 40 04 01 - Reserve for additional payment needs

Figures:

 

Budget 2014

Draft amending budget No 2

Council position

Difference

New amount

40 04 01

-

-

-

1 005 406 925

1 005 406 925

Total

-

-

-

1 005 406 925

1 005 406 925

Remarks:

The appropriations entered in this article are to be used to cover additional payment appropriation needs as identified by the Commission in DAB 3.

Justification:

Given the huge pressure on 2014 payments and the reinforcements requested by Commission in DAB 3/2014, it is proposed that the amount of the surplus for the year 2013 is used to fund a newly created line 40 04 01 "Reserve for additional payment needs" on the expenditure side of the budget, instead of to reduce the GNI-based own resources. If DAB 3/2014 is adopted unamended by Council, this amendment will be withdrawn.

Legal framework

Article 18.1 of the Financial Regulation stipulates that the surplus from each financial year, whether surplus or deficit, is entered as revenue or expenditure in the budget of the subsequent financial year through an amending budget. Article 15.3 further mentions that 'any discrepancy with the estimates shall be entered in the budget for the following financial year through an amending budget devoted solely to that discrepancy'.

In your Rapporteur's view, such provisions are incompatible with the rejection of this Draft amending budget, but not with its amendment since Article 18 of the Financial Regulation does leave some room of discretion as to the destination of the surplus. It should also be stressed that any interpretation of the Financial Regulation provisions consisting in the obligation for the Parliament to adopt this amending budget without modification may go against the budgetary prerogatives of the Parliament as provided for by the Treaty. Your Rapporteur would also like to highlight that there is no possible legal action against EP amendments on DAB 2/2014 at this stage. If adopted, the EP and Council would have to enter negotiations to find a solution.


RESULT OF FINAL VOTE IN COMMITTEE

Date adopted

13.10.2014

 

 

 

Result of final vote

+:

–:

0:

21

3

0

Members present for the final vote

Nedzhmi Ali, Richard Ashworth, Gérard Deprez, José Manuel Fernandes, Eider Gardiazabal Rubial, Kaja Kallas, Zbigniew Kuźmiuk, Vladimír Maňka, Clare Moody, Siegfried Mureşan, Victor Negrescu, Pina Picierno, Petri Sarvamaa, Patricija Šulin, Eleftherios Synadinos, Paul Tang, Marco Valli, Daniele Viotti, Marco Zanni

Substitutes present for the final vote

Pablo Echenique, Ernest Maragall, Ivan Štefanec

Substitutes under Rule 200(2) present for the final vote

Emma McClarkin, Virginie Rozière

Last updated: 14 October 2014Legal notice