PURPOSE: final adoption of amending budget No 2 of the European Union for the financial year 2008.

LEGISLATIVE ACT: Decision 2008/546/EC, Euratom.

CONTENT: the European Parliament effected the final adoption of amending budget 2/2008 of the European Union (in accordance with its resolution of 22 May 2008 – please see the summary of the resolution).

This amending budget deals with the following matters:

inclusion into the 2008 budget of unused commitment appropriations for the European Regional Development Fund (ERDF), the European Agricultural Fund for Rural Development (EAFRD) and the European Fisheries Fund (EFF), arising from delays in the implementation of the first year of the multiannual financial framework 2007-2013. This entails an increase in commitment appropriations of EUR 378 million for sub-heading 1b (Cohesion for Growth and Employment) and of EUR 393.6 million for Heading 2 (Preservation and Management of Natural Resources); modifications to the establishment plan of two EU agencies (European Medicines Agency and European Maritime Safety Agency).

The European Parliament adopted, unamended, by 498 votes to 16, with 7 abstentions, Draft amending budget No 2/2008.

The report had been tabled for consideration in plenary by Kyösti VIRRANKOSKI (ALDE, FI) on behalf of the Committee on Budgets.

This amending budget No 2/2008 covers the following elements:

inclusion into the 2008 budget of unused commitment appropriations for the European Regional Development Fund (ERDF), the European Agricultural Fund for Rural Development (EAFRD) and the European Fisheries Fund (EFF), arising from delays in the implementation of the first year of the multiannual financial framework 2007-2013. This entails an increase in commitment appropriations of EUR 378 million for sub-heading 1b (Cohesion for Growth and Employment) and of EUR 393.6 million for Heading 2 (Preservation and Management of Natural Resources); modifications to the establishment plan of two EU agencies (European Medicines Agency and European Maritime Safety Agency).

The Parliament recalls that it had put part of the administrative expenditure linked with the structural funds and rural development in reserve in Budget 2008 in order to accelerate the approval of operational programmes. However, it notes that some operational programmes of ERDF have not been dealt with by the Commission and is worried about the delays in approval of operational programmes of rural development, one of Parliament's political priorities. It notes, however, that all operational programmes of the European Social Fund have been approved.

At the same time, the Parliament notes that the under-implementation in 2007 in headings 1b and 2 amounted to EUR 3 525 million, of which EUR 1 491 million were carried forward to 2008, and EUR 2 034 million should be transferred (under point 48 of the Interinstitutional Agreement of 17 May 2006) to later years.

On 14 March 2008, the Commission submitted to the Council the preliminary draft amending budget (PDAB) No. 2 to the general budget for 2008.

The Commission's proposal covers the following elements:

inclusion into the 2008 budget of unused appropriations for commitments for the European Regional Development Fund (ERDF), the European Agricultural Fund for Rural Development (EAFRD) and the European Fisheries Fund (EFF), arising from delays in the implementation of the first year of the multiannual financial framework 2007-2013. This entails an increase in appropriations for commitments of EUR 378 million for sub-heading 1b (Cohesion for Growth and Employment) and of EUR 393.6 million for Heading 2 (Preservation and Management of Natural Resources); modifications to the establishment plan (6 additional temporary posts: 2 AD 9, 1 AD 8, 1 AD 6, and 2 AST 2) of the European Medicines Agency (EMEA), following the creation of the "Paediatric Committee"; modifications to the establishment plan (16 additional temporary posts: 1 AD 13, 1 AD 10, 3 AD 9, 2 AD 8, 5 AD 7, 1 AD 6, 1 AST 4 and 2 AST 3) of the European Maritime Safety Agency (EMSA) to take account of the creation of a European Data Centre for the Long Range Identification and Tracking of Ships.

The proposed inclusion of unused appropriations for commitments incorporates the budgetary consequences for 2008 of the Commission's proposal for a Decision of the European Parliament and of the Council amending the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management as regards the adjustment of the multiannual financial framework (see ACI/2008/2083 ). The proposed modifications to the establishment plans do not require any additional appropriations for 2008, as the overall additional expenditure will be covered by the increased estimated level of overall agency revenues in the case of EMEA, and through the use of assigned revenue received back from the 2006 grant in the case of EMSA.

On 14 May 2008, the Council established the draft amending budget No. 2 for the financial year 2008, as submitted by the Commission in its PDAB No. 2 and as set out in the technical annex to this explanatory memorandum (see Council doc. 9190/08 ADD 1).

On 14 March 2008, the Commission submitted to the Council the preliminary draft amending budget (PDAB) No. 2 to the general budget for 2008.

The Commission's proposal covers the following elements:

inclusion into the 2008 budget of unused appropriations for commitments for the European Regional Development Fund (ERDF), the European Agricultural Fund for Rural Development (EAFRD) and the European Fisheries Fund (EFF), arising from delays in the implementation of the first year of the multiannual financial framework 2007-2013. This entails an increase in appropriations for commitments of EUR 378 million for sub-heading 1b (Cohesion for Growth and Employment) and of EUR 393.6 million for Heading 2 (Preservation and Management of Natural Resources); modifications to the establishment plan (6 additional temporary posts: 2 AD 9, 1 AD 8, 1 AD 6, and 2 AST 2) of the European Medicines Agency (EMEA), following the creation of the "Paediatric Committee"; modifications to the establishment plan (16 additional temporary posts: 1 AD 13, 1 AD 10, 3 AD 9, 2 AD 8, 5 AD 7, 1 AD 6, 1 AST 4 and 2 AST 3) of the European Maritime Safety Agency (EMSA) to take account of the creation of a European Data Centre for the Long Range Identification and Tracking of Ships.

The proposed inclusion of unused appropriations for commitments incorporates the budgetary consequences for 2008 of the Commission's proposal for a Decision of the European Parliament and of the Council amending the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management as regards the adjustment of the multiannual financial framework (see ACI/2008/2083 ). The proposed modifications to the establishment plans do not require any additional appropriations for 2008, as the overall additional expenditure will be covered by the increased estimated level of overall agency revenues in the case of EMEA, and through the use of assigned revenue received back from the 2006 grant in the case of EMSA.

On 14 May 2008, the Council established the draft amending budget No. 2 for the financial year 2008, as submitted by the Commission in its PDAB No. 2 and as set out in the technical annex to this explanatory memorandum (see Council doc. 9190/08 ADD 1).

The Committee on Budgets unanimously adopted the report by Kyösti VIRRANKOSKI (ALDE, FI), approving, unamended, the draft amending budget No 2 of the European Union for the financial year 2008.

In doing so, MEPs recall that they had put part of the administrative expenditure linked with the structural funds and rural development in reserve in Budget 2008 in order to accelerate the approval of operational programmes. However, they note that some operational programmes of ERDF have not been dealt with by the Commission and are worried about the delays in approval of operational programmes of rural development, one of Parliament's political priorities.

At the same time, MEPs note that the under-implementation in 2007 in headings 1b and 2 amounted to EUR 3 525 million, of which EUR 1 491 million were carried forward to 2008, and EUR 2 034 million should be transferred (under point 48 of the Inter-Institutional Agreement) to later years.

Furthermore, MEPs approve draft amending budget No 2/2008 unamended.

PURPOSE: to present the Preliminary Draft Amending Budget 2/2008 to take into account the amount of unused Structural Funds in 2007.

CONTENT: this Preliminary Draft Amending Budget (PDAB) No 2 for the financial year 2008 covers the following elements:

inclusion within the 2008 budget of unused appropriations for commitments for the European Regional Development Fund (ERDF), European Agricultural Fund for Rural Development (EAFRD) and the European Fisheries Fund (EFF), arising from delays in implementation of the first year of the multi-annual financial framework 2007-2013 (see ACI/2008/2083 ). This entails an increase in commitment appropriations of EUR 378 million for sub-heading 1b , Cohesion for Growth and Employment, and of EUR 393.6 million for heading 2 , Preservation and Management of Natural Resources; modifications to the establishment plan of the European Medicines Agency (EMEA), following the creation of the “Paediatric Committee”: the Agency requested an increase in the number of positions in the establishment plan by 6 positions (4 “AD” positions and 2 “AST” positions), totalling 18 positions to ensure that its responsibilities are met given the tasks it must complete. The financing of new positions will have no effect on the overall amount of EU contribution to the budget of the Agency for 2008 and subsequent years, taking into account the increased estimated level of overall revenues of the Agency; modifications to the establishment plan of the European Maritime Safety Agency (EMSA) to take account of the creation of a European Data Centre for the Long Range Identification and Tracking of Ships (LRIT): it is proposed to increase the 2008 establishment plan from 165 to 181 posts (+16 posts: +13 AD, +3 AST). The additional staff will mainly be allocated to operational tasks. The proposed modification does not require any additional budget for 2008, as the overall additional expenses for this task, which amount to EUR 5.8 million, will be financed through the use of assigned revenues received back from the 2006 grant. The Agency has already specified that 12 more posts are needed for the operational management of LRIT in 2009, to reach the total of 28 posts required for this task. This addition will be part of the establishment plan request of EMSA for 2009.

Therefore, the overall financial impact on the 2008 budget will be EUR 771 599 317 in commitment appropriations (with no financial impact on payment appropriations).

PURPOSE: to present the Preliminary Draft Amending Budget 2/2008 to take into account the amount of unused Structural Funds in 2007.

CONTENT: this Preliminary Draft Amending Budget (PDAB) No 2 for the financial year 2008 covers the following elements:

inclusion within the 2008 budget of unused appropriations for commitments for the European Regional Development Fund (ERDF), European Agricultural Fund for Rural Development (EAFRD) and the European Fisheries Fund (EFF), arising from delays in implementation of the first year of the multi-annual financial framework 2007-2013 (see ACI/2008/2083 ). This entails an increase in commitment appropriations of EUR 378 million for sub-heading 1b , Cohesion for Growth and Employment, and of EUR 393.6 million for heading 2 , Preservation and Management of Natural Resources; modifications to the establishment plan of the European Medicines Agency (EMEA), following the creation of the “Paediatric Committee”: the Agency requested an increase in the number of positions in the establishment plan by 6 positions (4 “AD” positions and 2 “AST” positions), totalling 18 positions to ensure that its responsibilities are met given the tasks it must complete. The financing of new positions will have no effect on the overall amount of EU contribution to the budget of the Agency for 2008 and subsequent years, taking into account the increased estimated level of overall revenues of the Agency; modifications to the establishment plan of the European Maritime Safety Agency (EMSA) to take account of the creation of a European Data Centre for the Long Range Identification and Tracking of Ships (LRIT): it is proposed to increase the 2008 establishment plan from 165 to 181 posts (+16 posts: +13 AD, +3 AST). The additional staff will mainly be allocated to operational tasks. The proposed modification does not require any additional budget for 2008, as the overall additional expenses for this task, which amount to EUR 5.8 million, will be financed through the use of assigned revenues received back from the 2006 grant. The Agency has already specified that 12 more posts are needed for the operational management of LRIT in 2009, to reach the total of 28 posts required for this task. This addition will be part of the establishment plan request of EMSA for 2009.

Therefore, the overall financial impact on the 2008 budget will be EUR 771 599 317 in commitment appropriations (with no financial impact on payment appropriations).