REPORT on Council's position on Draft amending budget No 1/2011 of the European Union for the financial year 2011, Section III – Commission

    1.4.2011 - (07704/2011 – C7-0072/2011 – 2011/2022(BUD))

    Committee on Budgets
    Rapporteur: Sidonia Elżbieta Jędrzejewska

    Procedure : 2011/2022(BUD)
    Document stages in plenary
    Document selected :  
    A7-0115/2011
    Texts tabled :
    A7-0115/2011
    Debates :
    Texts adopted :

    MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

    on Council's position on Draft amending budget No 1/2011 of the European Union for the financial year 2011, Section III – Commission

    (07704/2011 – C7-0072/2011 – 2011/2022(BUD))

    The European Parliament,

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

    –   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 thereof,

    –   having regard to the general budget of the European Union for the financial year 2011, as definitively adopted on 15 December 2010[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 Draft amending budget No 1/2011 of the European Union for the financial year 2011, which the Commission presented on 14 January 2011 (COM(2011)0009),

    –   having regard to Council's position on Draft amending budget No 1/2011, which the Council established on 15 March 2011 (07704/2011 – C7-0072/2011),

    –   having regard to Rules 75b and 75e of its Rules of Procedure,

    –   having regard to the report of the Committee on Budgets (A7-0115/2011),

    A. whereas Draft amending budget No 1/2011 to the general budget 2011 aims at mobilising the EU Solidarity Fund for an amount of EUR 182,4 million in commitment and payment appropriations in order to mitigate the effects of flooding resulting from heavy rainfalls in Poland, Slovakia, the Czech Republic, Hungary, Croatia and Romania,

    B.  whereas the purpose of Draft amending budget No 1/2011 is to formally enter this budgetary adjustment into the 2011 budget,

    C. whereas the Joint Statement on payment appropriations annexed to the budget for the financial year 2011 foresaw the submission of an amending budget "if the appropriations entered in the 2011 budget are insufficient to cover expenditure",

    D.  whereas the Council has decided to establish a "negative reserve" as provided for by Article 44 of the Financial Regulation,

    E.  whereas this Council's decision is only pragmatic, does not provide sustainable and financially sound solution for potential future unforeseen needs, and should therefore be considered as a one-off option,

    F.  whereas the Council called on the Commission to present "as soon as possible" a proposal for the drawing up of the negative reserve,

    G. whereas the forthcoming Draft Amending Budget on the budgeting of the surplus for the financial year 2010 will provide a suitable and timely opportunity for the drawing up of the negative reserve,

    1.  Takes note of Draft amending budget No 1/2011;

    2.  Is of the opinion that the EU Solidarity Fund should be mobilised as swiftly as possible following a natural catastrophe, and that applications for financial assistance, evaluation and drafting of the proposals, and adoption of relevant budgetary and legislative acts should be dealt with in an effective and fast-acting manner;

    3.  Calls on the Commission, without prejudice to its right of initiative, to have recourse to the Draft Amending Budget on the budgeting of the surplus for the financial year 2010, as provided for by Article 15 of the Financial Regulation, for the drawing up of the negative reserve;

    4.  Approves, without amendment, the Council's position on Draft amending budget No 1/2011 and instructs its President to declare that Amending budget No 1/2011 has been definitively adopted and to arrange for its publication in the Official Journal of the European Union;

    5.  Instructs its President to forward this resolution to the Council, the Commission and the national parliaments.

    EXPLANATORY STATEMENT

    According to Article 37(1) of the Financial Regulation, the Commission may present draft amending budgets if there are "unavoidable, exceptional or unforeseen circumstances".

    Concerning the different points of DAB 1/2011, your rapporteur has the following comments:

    1. Mobilisation of the EU Solidarity Fund

    The Commission proposal for mobilisation of the EUSF is based on point 26 of the IIA of 17 May 2006 on budgetary discipline and sound financial management, which allows such a mobilisation within an annual ceiling of EUR 1 billion.

    The conditions of the eligibility to the Fund are detailed in Council Regulation n°2012/2002 establishing the EUSF, and it has to be recalled that the objective of the Fund is to repair infrastructure and is a tool of refinancing, and shall not compensate private damages. This proposal for mobilisation of the EUSF is the first one presented by the Commission for the year 2011.

    The direct damages have been estimated by the Polish, Czech, Slovakian, Hungarian, Croatian and Romanian authorities to a total of EUR 5.512.719.662. In the cases of Poland, Slovakia, Hungary and Romania, the direct damages exceed the normal threshold of 0.6 % of GNI for mobilising the EUSF and can qualify as "major natural disaster". In the cases of the Czech Republic and Croatia, where direct damages do not exceed the normal threshold, the specific condition set out in Article 2(2) of the above-mentioned Council Regulation whereby a country affected by the same major disaster as a neighbouring country may exceptionally benefit from EUSF was found to be met. Due to its status of acceding country to the EU, Croatia is eligible to EUSF, but the EU financial assistance will be disbursed from heading 4 (article 13 06 02), whereas assistance to the other involved Member States will be disbursed from subheading 3 b (article 13 06 01).

    The total amount for aid proposed in draft amending budget 1/2011 is EUR 182 388 893 :

    (EUR)

     

    Direct damage

    Threshold

    Amount based on 2.5 %

    Amount based on 6 %

     

    Total amount ofaid proposed

     

    Poland - flooding 2010"major disaster"

     

    2 998 989 248

    2 124 920 000

    53 123 000

    52 444 155

    105 567 155

    Slovakia - flooding 2010"major disaster"

     

    561 133 594

    378 205 000

    9 455 125

    10 975 716

    20 430 841

    Hungary - flooding 2010"major disaster"

     

    719 343 706

    590 710 000

    14 767 750

    7 718 022

    22 485 772

    Czech Republic - flooding 2010"neighbouring country"

     

    204 456 041

    824 029 000

    5 111 401

    0

    5 111 401

    Croatia - flooding 2010"neighbouring country"

     

    153 039 303

    275 804 000

    3 825 983

    0

    3 825 983

    Romania - flooding 2010"major disaster"

     

    875 757 770

    787 935 000

    19 698 375

    5 269 366

    24 967 741

    Total

    5 512 719 662

     

    182 388 893

    2. Financing

    In line with the Joint Declaration on payment appropriations drafted during budgetary conciliation and adopted by the Parliament, the Council and the Commission, draft amending budget 1/2011 is proposed since appropriations entered in 2011 budget are insufficient to cover the needs identified.

    A reinforcement of EUR 182 388 893 in commitment and payment appropriations is presented; in line with the IIA of 17 May 2006, this amount is entered over and above subheading 3 b and heading 4.

    MFF

    2011 Financial framework

    Budget 2011

    DAB 1/2011

    Budget 2011

    (incl. DAB 1/2011)

     

     

    CA

     

     

    PA

     

     

    CA

     

     

    PA

     

     

    CA

     

     

    PA

     

     

    CA

     

     

    PA

     

    1a.

    12 987 000 000

     

    13 520 566 270

    11 627 802 798

     

     

    13 520 566 270

    11 627 802 798

    Margin[1]

     

     

    -33 566 270

     

     

     

    -27 160 054

     

    1b.

    50 987 000 000

     

    50 980 593 784

    41 652 094 626

     

     

    50 980 593 784

    41 652 094 626

    Margin

     

     

    6 406 216

     

     

     

    -27 160 054

     

    2.

    60 338 000 000

     

    58 659 248 389

    56 378 918 184

     

     

    58 659 248 389

    56 378 918 184

    Margin

     

     

    1 678 751 611

     

     

     

    1 678 751 611

     

    3a.

    1 206 000 000

     

    1 138 954 740

    813 277 345

     

     

    1 138 954 740

    813 277 345

    Margin

     

     

    67 045260

     

     

     

    67 148 260

     

    3b.

    683 000 000

     

    682 897 000

    645 969 000

    +178 562 910

    +178 562 910

    861 459 910

    824 531 910

    Margin[2]

     

     

    103 000

     

     

     

    67 148 260

     

    4.

    8 430 000 000

     

    8 754 299 377

    7 237 527 520

    +3 825 983

    +3 825 983

    8 758 125 360

    7 241 353 503

    Margin[3]

     

     

    -70 439 377

     

     

     

    -70 439 377

     

    5.

    8 334 000 000

     

    8 172 839 289

    8 171 544 289

     

     

    8 172 839 289

    8 171 544 289

    Margin[4]

     

     

    243 160 711

     

     

     

    243 160 711

     

    TOTAL

    142 965 000 000

    134 280 000 000

    141 909 398 849

    126 527 133 762

    +182 388 893

    +182 388 893

    142 091 787 742

    126 709 522 655

    The Council has decided to establish a negative reserve in payment appropriations, as provided for by Article 44 of the Financial Regulation. This pragmatic and financially inappropriate solution could only be considered as a one-off option. In the meantime since financial assistance to these countries has to be delivered and cannot be further delayed, the rapporteur proposes to accept without amendment Council's position on draft amending budget 1/2011.

    • [1]       The European Globalisation adjustment Fund (EGF) is not included in the calculation of the margin under Heading 1a (EUR 500 million). EUR 34 million above the ceiling is financed by the mobilisation of the Flexibility Instrument.
    • [2]       The European Union Solidarity Fund (EUSF) amount is entered over and above the relevant headings as foreseen by the IIA of 17 May 2006 (OJ C 139 of 14.6.2006)
    • [3]       The 2011 margin for heading 4 does not take into account the appropriations related to the Emergency Aid Reserve (EUR 253,9 million). EUR 71 million above the ceiling is financed by the mobilisation of the Flexibility Instrument.
    • [4]       For calculating the margin under the ceiling for heading 5, account is taken of the footnote (1) of the financial framework 2007-2013 for an amount of EUR 82 million for the staff contributions to the pension scheme.

    RESULT OF FINAL VOTE IN COMMITTEE

    Date adopted

    31.3.2011

     

     

     

    Result of final vote

    +:

    –:

    0:

    24

    2

    1

    Members present for the final vote

    Marta Andreasen, Francesca Balzani, Reimer Böge, Lajos Bokros, Giovanni Collino, Jean-Luc Dehaene, James Elles, Göran Färm, José Manuel Fernandes, Salvador Garriga Polledo, Carl Haglund, Lucas Hartong, Monika Hohlmeier, Sergej Kozlík, Jan Kozłowski, Alain Lamassoure, Giovanni La Via, Vladimír Maňka, Claudio Morganti, Nadezhda Neynsky, Miguel Portas, László Surján, Angelika Werthmann, Jacek Włosowicz

    Substitute(s) present for the final vote

    Gerben-Jan Gerbrandy, Jan Olbrycht, Peter Šťastný