PURPOSE: definitive adoption of Amending budget No 1 of the European Union for the financial year 2014.

LEGISLATIVE ACT: Decision 2014/432/EU, Euratom.

CONTENT: Parliament definitively adopted the Amending budget No 1 of the European Union for the financial year 2014 in accordance with its resolution of 16 April 2014 (please refer to the summary of the resolution).

This amending budget relates to a number of adjustments necessary for the implementation of budget 2014 in line with the adoption of the latest legislative acts, and in particular adjustments needed:

to implement the proposed European Investment Fund (EIF) capital increase, to changes arising from the legal basis of Horizon 2020 adopted after the formal adoption of budget 2014, for the creation of the budget structure for the proposal of the Shift2Rail Joint Undertaking.

It should be noted that these changes are presented as budgetary neutral , with no change to the overall level of expenditure for 2014.

The European Parliament adopted by 634 votes to 22, with 14 abstentions, a resolution on the Council position on Draft amending budget No 1/2014 of the European Union for the financial year 2014, Section III – Commission.

Parliament recalled that this draft amending budget relates to a number of adjustments necessary for the implementation of budget 2014 in line with the adoption of the latest legislative acts, and in particular adjustments needed:

to implement the proposed European Investment Fund (EIF) capital increase, to changes arising from the legal basis of Horizon 2020 adopted after the formal adoption of budget 2014, for the creation of the budget structure for the proposal of the Shift2Rail Joint Undertaking.

It also recalled that it is necessary to create the appropriate budgetary structure for the Shift2Rail Joint Undertaking and that the purpose of Draft amending budget No 1/2014 is to formally enter this budgetary adjustment into the 2014 budget.

Parliament noted that the proposed changes are presented as budgetary neutral, with no change to the overall level of expenditure for 2014.

In parallel, Parliament recalled that the work programme for the activity covered by budget line 08 02 04 01 "Science for and with society" indicates commitments of some EUR 53 million in 2014 while Draft amending budget No 1/2014 does not suggest any allocations to this line . It reminded the Commission of the commitment made during the budgetary trilogue of 2 April 2014 to immediately proceed to an internal transfer to line 08 02 04 01 "Science for and with society" in order to ensure the smooth start of this activity according to the work programme.

Parliament approved the Council position on Draft amending budget No 1/2014.

The Committee on Budgets adopted the report by Anne E. JENSEN (ADLE, DK) on the Council position on Draft amending budget No 1/2014 of the European Union for the financial year 2014, Section III – Commission.

Members recalled that this draft amending budget relates to a number of adjustments necessary for the implementation of budget 2014 in line with the adoption of the latest legislative acts, and in particular adjustments needed:

to implement the proposed European Investment Fund (EIF) capital increase, to changes arising from the legal basis of Horizon 2020 adopted after the formal adoption of budget 2014, for the creation of the budget structure for the proposal of the Shift2Rail Joint Undertaking.

Members recalled that it is necessary to create the appropriate budgetary structure for the Shift2Rail Joint Undertaking and that the purpose of Draft amending budget No 1/2014 is to formally enter this budgetary adjustment into the 2014 budget.

The proposed changes are presented as budgetary neutral, with no change to the overall level of expenditure for 2014.

Members called on the Parliament to approve the Council position on Draft amending budget No 1/2014.

On 11 February 2014, the Commission submitted to the Council draft amending budget (DAB) No 1 to the general budget for 2014 regarding the following elements:

adjustments needed to implement the capital increase of the European Investment Fund to improve access to financing for small and medium-sized enterprises; technical adjustments in the budgetary structure following the adoption of the legal base for Horizon 2020 in December 2013; technical adjustments in the budgetary structure related to the establishment of the Shift2Rail Joint Undertaking; other technical amendments necessary to allow the implementation of the 2014 budget as agreed by the Conciliation Committee.

This DAB is budgetary neutral in terms of overall commitment and payment appropriations.

On 9 April 2014, the Council adopted its position on DAB No 1/2014 by approving, unamended, the Commission proposal as set out in the technical annex to the explanatory memorandum of the draft budget (see Council doc. 8219/14 ADD 1 ).

PURPOSE: presentation of a draft amending budget No 1 for the year 2014 (DAB No 1/2014).

CONTENT: Draft Amending Budget (DAB) No 1 for the year 2014 concerns a number of technical adjustments to the budget structure and remarks, which are necessary to properly implement the 2014 budget in line with the latest legislative decisions and political orientations, including the immediate need to facilitate SMEs access to financing.

The amending budget is budgetary neutral , with no change in the overall level of expenditure.

The main elements included are the following:

the adjustments needed to implement the proposed European Investment Fund (EIF) capital increase: the Commission proposes to make use of appropriations envisaged for financial instruments under existing programmes within the MFF expenditure heading 1a (Competitiveness for growth and jobs), namely COSME and Horizon 2020 , to enhance access to financing for SMEs; changes arising from the legal base for Horizon 20204 adopted in December 2013, after the adoption of the 2014 budget (creation of two new budget lines, to the alignment of the budgetary remarks of a number of budget lines and, for some budget lines, a revised labelling); the creation of the budget structure for the proposed Shift2Rail joint undertaking to be set up for a period ending on 31 December 2024 under Article 187 of the Treaty on the Functioning of the European Union.