Brussels, 19/07/2016 (Agence Europe) - On Wednesday 20 July, the Committee of Permanent Representatives of the Member States to the EU (Coreper) is expected to approve the position of the Council of the EU on the draft EU budget for 2017, on the basis of a compromise text of the Slovak Presidency.
A provisional agreement was reached on Monday 18 July at the level of Council budget experts, and so the budgetary session of the Ecofin Council scheduled for the end of this week will not take place.
The 2017, the Council provides a total of €156.4 billion in commitments and €133.8 billion in payments. This represents €1.3 billion in commitments and €1.1 billion in payments less than the Commission's proposals from the end of June (EUROPE 11584).
The Council's position equates to an increase of commitments of 0.89% and a drop in payments of 7.02% compared to the 2016 budget as modified by amending budgets no. 1 and 2. The significant drop in payment appropriations is mostly due to the fact that for the cohesion policy, the old 2007-2013 programmes have been finalised (meaning that there are no longer any big invoices to be paid) and the new programmes (from 2014) are taking the time to reach cruising speed.
Yes to 'contingency margin'. The Council retained the principle, which was supported by the Commission, of making use of the flexibility instrument and mobilising the 'contingency margin' (but at a lower level than the €1.2 billion suggested by the Commission) to help to pay for the EU's measures in 2017 to manage the migration and refugee crisis. This contingency margin has the effect of increasing the upper limit of a heading of the multi-annual financial framework (MFF), a budgetary juggling act that is necessary due to the fact that there is no margin left in heading 3 (security and citizenship) due to the scale of the refugee crisis. The Commission is proposing to pay for the contingency margin by drawing on the margins in heading 2, 'natural resources', and heading 5, 'administration'. The Council agreed to these details, but suggests taking less from the margin of heading 2, which includes agricultural expenditure.
Heading 1a 'growth'. The Council puts the figures at €20.7 billion in commitments and €19 billion in payments (+9% compared to 2016).
Heading 1b 'cohesion'. The Council earmarks €53.6 billion in commitments (+5.4%) and €37.1 billion in payments (-23.9%).
Heading 2 'natural resources'. There will be €58.7 billion in commitment appropriations (-6.02% compared to 2016, but as there has been a transfer of commitments unused in 2014 and 2016, this reduction is actually equivalent to an increase) and €55 billion in payment appropriations (-0.15%). Expenditure under the first pillar of the common agriculture policy (CAP) rise by 1.28% in commitments and 1.18% in payments.
Heading 3 'security and citizenship'. The Council allocates a total of €4.2 billion in commitment appropriations (+3.8%) and €3.8 billion in payments (+24.4%, on the grounds of the refugee crisis).
Heading 4 'EU in the world'. The amounts of €9.3 billion in commitments (+1.7%) and €9.2 million in payment (-9.2%) have been agreed upon.
Heading 5 'administration'. The Council has provided €9.3 billion in commitments and the same amount in payments (+3.7%, mainly due to pensions for civil servants and increased security costs).
The Council will formally adopt its position by written procedure in mid-September. This will serve as a mandate for the Slovak Presidency of the Council to negotiate the EU budget for 2017 with the European Parliament. (Original version in French by Lionel Changeur)