Brussels, 03/02/2015 (Agence Europe) - The Latvian Presidency of the Council is hoping agreement will be reached quickly on the proposal that €21 billion of EU budget credit appropriations unused in 2014 be transferred to 2015-2017 (see EUROPE 11234). Initial technical level discussions, however, have shown that the member states need more time to examine the proposals.
On 20 January, the Commission adopted a proposal that unused 2014 allocations be transferred to later years by means of a revision of the commitments ceilings of the various headings of the multiannual financial framework (MFF) 2014-2020. A draft amending budget (No 2/2015) asks for the amount needed in commitment appropriations for the 2015 budget (€16.5 billion, with €11.1 billion for cohesion policy).
The proposal will be discussed by the Committee of Member States' Permanent Representatives to the EU (Coreper) on Wednesday 4 February and by the European Parliament budgets committee on Thursday 5 February.
Initial reactions from the member states suggest that most delegations support the Commission proposals. Some countries, however, would prefer the transfer of monies to be spread over longer periods of time and, it is thought, have asked the Commission to bring forward figures in support of its request.
How will the transfer be carried out? Unallocated sums of money from 2014 will again be made available to the same funds and the same member states, following review of the MFF regulation. The 2014 commitment appropriations ceiling will be reduced and ceilings for 2015 and the following years will be raised proportionately.
Under the terms of the Commission proposal, most of the unused funds will be transferred to 2015: European Regional Development Fund (ERDF), European Social Fund (ESF), cohesion fund and European Maritime and Fisheries Fund (EMFF). A small part of the ERDF allocation, devoted to cross-border cooperation with neighbouring countries will be transferred to 2017. European Agricultural Fund for Rural Development (EAFRD) allocations will be transferred to 2015 and 2016. Allocations for the Asylum, Migration and Integration Fund and the Internal Security Fund (ISF) will be transferred over the period from 2015 to 2017.
The MFF sets the ceilings for budget expenditure in each of the policy areas for a period of seven years. The current MFF began in January 2014. It proved impossible to adopt a large number of programmes before the end of the year. In line with Article 19 of the MFF regulation, the corresponding monies are to be transferred to subsequent years.
Similar action was taken in the previous two programming periods (in 2001 for the period 2000-2006 and in 2008 for the period 2007-2013).
The proposal has been put to the European Parliament and the Council. Review of the MFF requires a unanimous decision in Council, after approval by Parliament. The decision must be taken before 1 May 2015. The budgetary authority must also approve the draft amending budget proposing the transfer of monies not used in 2014. (LC)