Additional funds for 2013 budget formally approved by the Council

The Council has approved a further increase of the 2013 EU budget, by formally adopting its position on draft amending budgets no. 82 and 93. This follows the agreement reached by the Committee of the Permanent Representatives on 14 October.

Draft amending budget no. 8 is aimed at covering outstanding payment needs. It increases the 2013 EU budget by €3.9bn, complementing the €7.3bn of draft amending budget no. 2 approved by the Council on 9 July. The Council herewith lived up to its commitment “to take all necessary additional steps to ensure that the Union’s obligations for 2013 are fully honoured” and “to avoid any shortfall in justified payment appropriations”, in line with the political agreement reached with the European Parliament on the 2014-2020 Multiannual Financial Framework (MFF).

Draft amending budget no. 8 as accepted by the Council exhausts this year’s payment ceiling of the 2007-2013 MFF set at €144.29bn. Since the beginning of 2013 the Council has approved an overall increase of this year’s payment level by €11.59bn, which takes account of Croatia’s accession to the EU, solidarity fund for member states suffering from flooding disasters and meeting outstanding payment needs.

Draft amending budget no. 9 aims to show solidarity with countries hit by natural disasters, i.e. flooding or drought. It provides for the mobilisation of €400.5m in commitments and payments out of the EU solidarity fund to the benefit of several member states. The payments are covered by appropriations which the Commission expects not to be spent by the end of this year (as identified in the so-called ‘global transfer’).

In order that the funds become available the two draft amending budgets still need the approval of the European Parliament. If the Council’s and the Parliament’s positions diverge, a three-week conciliation period will have to be launched.

Earlier this month, the Council adopted its position on draft amending budget no. 6, approving a revision of the forecast of own resources. As compared to the previous forecast, the financing from net customs duties and from the own resources based on the VAT decreases, while the financing from the own resources based on the Gross National Income and from fines increases. Draft amending budget no. 6 increases the member states’ net budgetary burden by further €2.7bn.