on Draft amending budget No 10/2008 of the European Union for the financial year 2008, Section III – Commission

(16264/2008 – C6‑0461/2008 – 2008/2316(BUD))

The European Parliament,

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

–   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(1), and particularly Articles 37 and 38,

–   having regard to the general budget of the European Union for the financial year 2008, as finally adopted on 13 December 2007(2),

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

–   having regard to Preliminary draft amending budget No 11/2008 of the European Union for the financial year 2008, which the Commission presented on 7 November 2008 (COM(2008)0731),

–   having regard to Draft amending budget No 10/2008, which the Council established on 27 November 2008 (16264/2008 – C6‑0461/2008),

–   having regard to Rule 69 of and Annex IV to its Rules of Procedure,

–   having regard to the report of the Committee on Budgets (A6‑481/2008),

A. whereas Draft amending budget (DAB) No 10 to the General Budget 2008 covers the following items:

-     mobilisation of the EU Solidarity Fund for an amount of EUR 7,6 million in commitment and payment appropriations following a serious drought in Cyprus

-     a corresponding reduction in payment appropriations of EUR 7,6 million from the budget line 13 04 02 - Cohesion fund,

B.  whereas the purpose of DAB No 10/2008 is to formally enter this budgetary adjustments into the 2008 budget,

C. whereas the Council has adopted Preliminary draft amending budget (PDAB) No 11/2008 as DAB No 10/2008, following the cancellation of DAB No 8/2008,

1.  Takes note of Preliminary draft amending budget No 11/2008;

2.  Approves DAB No 10/2008 unamended;

3.  Instructs its President to forward this resolution to the Council and Commission.

(1) OJ L 248, 16.9.2002, p. 1.. (2) OJ L 71, 14.3.2008, p. 1. (3) OJ C 139, 14.6.2006, p. 1.

According to article 37 par. 1 of the Financial Regulation the European Commission may present Preliminary Draft Amending Budget if there are "unavoidable, exceptional or unforeseen circumstances". Following the budgetary Conciliation of 21 November 2008, the Council has announced that it will not adopt Draft Amending Budget 8/2008. In consequence, PDAB 11/2008 becomes the AB 10/2008.

Concerning the different points of Draft Amending Budget No 10/2008, your rapporteur has the following comments:

1. Mobilisation of the EU Solidarity Fund

The conditions of the eligibility to the fund are detailed in article 26 of the IIA and in Council Regulation number 2012/2002. It is important to note that the objective of the fund is not the compensation for private damage but to repair infrastructure and it is a tool of refinancing.

By presenting this proposal the Commission initiates a Trialoge procedure as required by article 26 of IIA.

As a reminder, the following applications have been made so far during the financial period 2007-2013:

Interventions of the EUSF in 2007

* In Euro

Interventions of the EUSF in 2008

From the available annual ceiling of EUR 1 billion, in 2008 EUR 273 191 197 have already been mobilised for earlier applications, leaving EUR 726 808 803 available (without current application Cyprus EUR 7 605 445).

2. Financing

As to commitments the necessary EUR 7,6 million are mobilised directly from line 13 06 01 Solidarity Fund. The payments will be paid from excess appropriations in line 13 04 02 Cohesion fund, being allocated to budget line 13 06 01. The Commission states that this redeployment is possible because under the Cohesion fund for the period 2007-2013 are payments related to major projects which need to be approved separately in subsequent Commission decisions. No major projects are expected to be submitted and approved any more in 2008.

Your rapporteur thus recommends you to adopt DAB 10/2008 unamended.