PURPOSE: to mobilise the Flexibility Instrument to complement the financing of the Cypriot Structural Funds programmes under heading 1b.

LEGISLATIVE ACT: Decision (EU) 2015/421 of the European Parliament and of the Council on the mobilisation of the Flexibility Instrument.

CONTENT: Council Regulation (EU, EURATOM) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years 2014-2020 allows for the mobilisation of the Flexibility Instrument to allow the financing of clearly identified expenditure which could not be financed within the limits of the ceilings available for one or more headings of the multiannual financial framework.

Article 11 of Council Regulation 1311/2013 established a Flexibility instrument of up to EUR 471 million (2011 prices) per year.

After having examined all possibilities for re-allocating appropriations under heading 1b, it appears necessary to mobilise the flexibility instrument to complement the financing in the general budget of the European Union for the financial year 2015, beyond the ceiling of heading 1b, by EUR 83 285 595 towards the financing of the Cypriot Structural Funds programmes, to grant an additional allocation from the Structural Funds to Cyprus for the year 2015 for a total amount of EUR 100 000 000 .

It should be noted that for the financial year 2014, the European Parliament and the Council already mobilised the Flexibility instrument by Decision of 20 November 2013 for the financing of the Cypriot Structural Funds programmes for an amount of EUR 89 330 000 in commitment appropriations only.

Taking into account the supplementary nature of the Flexibility Instrument, it is necessary to provide additional payment appropriations to cover the additional commitment appropriations for Cyprus for the two financial years 2014 and 2015 on the basis of the expected payment profile, estimated at:

· EUR 11.3 million in 2015,

· EUR 45.7 million in 2016,

· EUR 75.4 million in 2017,

· EUR 40.2 million in 2018.

ENTRY INTO FORCE: 17.12.2014.

The European Parliament adopted by 587 votes to 105, with 17 abstentions, a resolution on the proposal for a decision of the European Parliament and of the Council on mobilisation of the Flexibility Instrument, in accordance with point 12 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management.

Parliament recalled that after having examined all possibilities for re-allocating commitment appropriations under sub-heading 1b, it appears necessary to mobilise the Flexibility Instrument for commitment appropriations. Therefore, the Commission has proposed to mobilise the Flexibility Instrument, over and above the MFF ceilings, to complement the financing in the general budget of the European Union for the financial year 2015 for EUR 79.8 million in commitment appropriations in relation to the additional allocation from the Structural Funds to Cyprus, by a total amount of EUR 100 million for the year 2015.

Parliament agreed therefore with the mobilisation of the Flexibility Instrument and amended the Commission proposal to finance the additional allocation for the Cypriot Structural Funds programmes under sub-heading 1b up to the amount of EUR 83.26 million .

It also reiterated that:

the mobilisation of this instrument, highlights, once more, the crucial need for the Union budget to be flexible; the payments stemming from commitments previously mobilised through the Flexibility Instrument can only be counted over and above the ceilings.

At the same time, Parliament approved the mobilisation of the Flexibility Instrument to provide the sum of EUR 83 285 595 in commitment appropriations in sub-heading 1b as well as the decision annexed to this motion for a resolution.

Payments associated with the financing of the Cypriot Structural Funds through the Flexibility Instrument in 2014 and 2015 will be EUR 172.6 million for the period 2015-2018.

The Committee on Budgets adopted the report by Eider GARDIAZABAL RUBIAL (S&D, ES) on the proposal for a decision of the European Parliament and of the Council on mobilisation of the Flexibility Instrument, in accordance with point 12 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management.

Members recalled that after having examined all possibilities for re-allocating commitment appropriations under sub-heading 1b, it appears necessary to mobilise the Flexibility Instrument for commitment appropriations. Therefore, the Commission has proposed to mobilise the Flexibility Instrument, over and above the MFF ceilings, to complement the financing in the general budget of the European Union for the financial year 2015 for EUR 79.8 million in commitment appropriations in relation to the additional allocation from the Structural Funds to Cyprus, by a total amount of EUR 100 million for the year 2015.

Members agreed therefore with the mobilisation of the Flexibility Instrument and amended the Commission proposal to finance the additional allocation for the Cypriot Structural Funds programmes under sub-heading 1b up to the amount of EUR 83.26 million .

They also reiterated that:

the mobilisation of this instrument, highlights, once more, the crucial need for the Union budget to be flexible; the payments stemming from commitments previously mobilised through the Flexibility Instrument can only be counted over and above the ceilings.

At the same time, Members called on the European Parliament to approve the mobilisation of the Flexibility Instrument to provide the sum of EUR 83 285 595 in commitment appropriations in sub-heading 1b as well as the decision annexed this to this motion for a resolution.

Payments associated with the financing of the Cypriot Structural Funds through the Flexibility Instrument in 2014 and 2015 will be EUR 172.6 million for the period 2015-2018.

PURPOSE: to mobilise the Flexibility Instrument to complement the financing of the Cypriot Structural Funds programmes under heading 1b (cohesion for growth and employment in the least developed EU countries and regions).

PROPOSED ACT: Decision of the European Parliament and of the Council.

CONTENT: Council Regulation (EU, EURATOM) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years 2014-2020 allows for the mobilisation of the Flexibility Instrument to allow the financing of clearly identified expenditure which could not be financed within the limits of the ceilings available for one or more headings of the multiannual financial framework.

Article 11 of Council Regulation 1311/2013 established a Flexibility instrument of up to EUR 471 million (2011 prices) per year.

After having examined all possibilities for re-allocating appropriations under heading 1b, it appears necessary to mobilise the flexibility instrument to complement the financing in the general budget of the European Union for the financial year 2015, beyond the ceiling of heading 1b, by EUR 79 785 595 towards the financing of the Cypriot Structural Funds programmes, to grant an additional allocation from the Structural Funds to Cyprus for the year 2015 for a total amount of EUR 100 000 000.

It should be noted that for the financial year 2014, the European Parliament and the Council already mobilised the Flexibility instrument by Decision of 20 November 2013 for the financing of the Cypriot Structural Funds programmes for an amount of EUR 89 330 000 in commitment appropriations only.

The Commission proposes that for the general budget of the European Union for the financial year 2015, the flexibility instrument shall be used to provide the sum of:

· EUR 79 785 595 in commitment appropriations in heading 1b,

· EUR 11 315 595 in payment appropriations .

The payment appropriations to cover the additional commitment appropriations for Cyprus, mobilised via the Flexibility Instrument in 2014 and 2015, are estimated on the basis of the indicative payment profile as follows:

· 2015 : EUR 11.3 million,

· 2016: EUR 43.7 million,

· 2017: EUR 73.9 million,

· 2018: EUR 40.2 million.

The precise annual amounts for the period 2016-18 will be defined in the draft budget of the related year. These amounts will be counted over and above the annual MFF ceiling for payment appropriations for the purposes of calculating the unallocated margin and the global margin for payments.