Brussels, 27/09/2013 (Agence Europe) - Budgetary negotiations look to be unremitting over the coming weeks. In addition to the adoption procedure for the 2014 budget (budgets committee is due to adopt its position next week) and the plenary session approval (in Strasbourg between 21 and 24 October) of the regulation on the multiannual financial framework (MFF) for the EU for the period from 2014 to 2020, the institutions will have to invest not inconsiderable effort in order to conclude a number of 2013-budget-related matters.
At the end of March 2013, the European Commission asked for an additional €11.2 billion (draft amending budget No 2 for 2013) for the 2013 budget to clear the outstanding claims from 2012. The European Parliament made its approval of the 2014-2020 MFF conditional on payment of this sum by the member states. The Council undertook to pay the money in two instalments, the first of which, totalling €7.3 billion, was paid out this summer.
On 25 September, the European Commission adopted draft amending budget No 8 for 2013 seeking payment of the balance of €3.9 billion, with €3 billion of which coming from structural funds (see EUROPE 10929). This draft amending budget was submitted to the Council's experts on Thursday 26 September. The so-called net-contributor countries to the EU budget have asked for an overview of draft amending budgets, and some have entered parliamentary scrutiny reserves. This group of countries has asked for the global transfer of €508 million (the Commission found this sum in the 2013 budget through re-allocations) to be used to reduce the amount of the amending budget. They are worried that the MFF payment appropriations ceiling for 2013 has been exceeded. In the opposite camp, the so-called cohesion countries want the Council to honour its commitments otherwise it will mean an additional budgetary load for national budgets and some claims being delayed until the 2014 budget. These countries are waiting for the Commission to pay them.
Arguments. At a meeting on Thursday between the European Commission, the European Parliament and the Lithuanian Presidency of the Council of Ministers, the European Budget Commissioner tried to justify the proposal on the €3.9 billion. The overall picture is that requests for repayment submitted by EU member states will amount to €61 billion by the end of October. The Commission considers the funds available in the 2013 budget amount to €50 billion. At the end of last year, there were requests for repayment, totalling €16 billion, which were not honoured. The Commission started in the first few months of this year to make repayments. Thus, of the €50 billion, €16 billion have been earmarked for repayments from the end of 2012. That leaves €34 billion for reimbursement claims totalling €61 billion.
How is the circle to be squared? The Commission has estimated the claims that will come in in November and December 2013: €20 billion in claims to be paid. The member states continue to slightly over-estimate the claims they are to submit. Assuming a 7% error level (last year's rate), the €61 billion falls to €57 billion. If €20 billion are removed from the €57 billion, it means that €37 billion will be needed to cover the period to 31 October. After paying €16 billion, €34 billion remain. Thus there is a shortfall of €3 billion (from structural funds) which is the sum sought in the amending budget.
Revenue problems. The institutions will have to come an agreement on draft amending budget No 6 for 2013 which seeks to resolve the problem of the €2.8 billion in missing revenue (largely attributable to a €4 billion or 20% fall in customs revenue). Revenue has to be equal to expenditure. The Commission sees this as a separate - technical - issue, even though it is the member states which are going to have to find the money.
Floods. The Commission is expected next week to adopt a further amending budget (No 9 for 2013) to assist those countries (Austria, the Czech Republic and Germany) which were hit by flooding this summer. The sum sought will be of the order of €400 million (solidarity fund). The Commission acknowledges that, with this request, credit appropriations will exceed the 2013 MFF ceiling.
The Commission is bound to honour claims submitted before the end of October, and can only hold over until the following year those claims submitted after that date.
On 25 July, the Commission adopted draft amending budget No 7 for 2013 providing for €150 million from the European social fund for France, Spain and Italy.
Letters of amendment. Letter of amendment No 1 for 2014, presented on 18 September, is an updating of needs for students, companies, research and Cyprus. It will be discussed within the framework of the adoption of the 2014 budget, as will the letter of amendment No 2 on updating agricultural and fisheries spending. (LC/transl.fl)