Brussels, 28 May 2014
Amending the Budget to cover research, education, support to businesses and Cohesion Policy
The Commission is proposing to increase the 2014 level of payment appropriations by EUR 4.738 billion to cover legal obligations in research and innovation, education and support for small and medium-sized enterprises. Higher reimbursement claims from Member States in cohesion policy have to be addressed as well as the difficult situation in the Ukraine. The Commission is proposing to use unallocated margins under the payment ceiling and recourse to the special instrument, the Contingency Margin1. However, the net cost to the Member States will be significantly lower, EUR 2.165 billion, as the Commission will cash in more than EUR 1.5 billion in additional revenue, mainly from competition fines as well as more than EUR 1 billion resulting from the implementation of the 2013 budget.
Draft amending budget 3 addresses the need for additional payments for EU programmes that have been beefed up to support Europe's economic recovery, growth and jobs: Horizon 2020 (research), the Youth Employment Initiative, Erasmus+ (education), COSME (support to businesses). Furthermore, several legislative acts have been concluded after the adoption of the 2014 budget and require more payment appropriations. Finally, some other programmes require a top-up to cover the requirements of the past year.
Today's proposal also covers Cohesion policy as some EUR 3.4 billion is required to meet unusually high reimbursement claims from Member States, as well as the Support package to Ukraine (EUR 250 million to cover the payment of the first instalment in June 2014.
Draft amending budget 3 in detail (in EUR million)
This is the third proposal to amend the 2014 budget.
Draft amending budget 1 was adopted in February 2014 and did not affect the overall size of the budget (reshuffling of agreed amounts within the voted budget).
Draft amending budget 2 was adopted in May 2014 and covered the surplus from the 2013 budget (EUR 1 billion)
Website of the EU BUDGET: http://ec.europa.eu/budget/index_en.cfm
Contingency Margin: A new mechanism agreed for the 2014-2020 period allowing the Commission to call for additional funding in case of unforeseen circumstances. 0.03 % of the EU-28's GNI (EUR 4 027 million in 2014) can be added to an annual budget. Future payment ceilings must be decreased by the same amount to ensure that the overall ceiling for the whole period remains unchanged.