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~~05.09.2024~~

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

~~Mr Johan Van Overtveldt~~

on the joint text on the draft general budget of the European Union for the financial year 2025 approved by the Conciliation Committee under the budgetary procedure

~~Chair~~

(12084/2024 – C100099/2024 – 2024/0176(BUD))

~~Committee on Budgets~~

The European Parliament,

~~BRUSSELS~~

– having regard to the joint text approved by the Conciliation Committee including the relevant Parliament, Council and Commission statements (12084/2024 – C100099/2024),

~~Subject:~~– ~~Opinion~~having onregard to the ~~General~~draft general budget of the European Union for the financial year ~~2025~~2025, -which ~~all~~the ~~sections~~Commission ~~2024/0176(BUD)~~adopted on 12 July 2024 (COM(2024)0300),

~~Dear Chair,~~

– having regard to the position on the draft general budget of the European Union for the financial year 2025, which the Council adopted on 13 September 2024 and forwarded to Parliament on 13 September 2024 (12084/2024 – C100099/2024),

Under the procedure referred to above, the Committee on the Internal Market and Consumer Protection has been asked to submit an opinion to your committee. At its meeting of 24 January 2024, the committee decided to send the opinion in the form of a letter. It considered the matter at its meeting of 5 September 2024 and adopted the opinion at that meeting.

– having regard to Letter of amendment No 1/2025 to the draft general budget of the European Union for the financial year 2025, which the Commission presented on 10 October (COM(2024)0651),

~~Yours sincerely,~~

– having regard to its budget amendments of 23 October 2024 on the Council position on the draft general budget of the European Union for the financial year 2025,

~~Anna Cavazzini~~

– having regard to Article 314 of the Treaty on the Functioning of the European Union,

~~IMCO Chair~~

– having regard to Article 106a of the Treaty establishing the European Atomic Energy Community,

~~SUGGESTIONS~~

– having regard to Council Decision (EU, Euratom) 2020/2053 EU of 14 December 2020 on the system of own resources of the European Union and repealing Decision 2014/335/EU, Euratom,

The Committee on the Internal Market and Consumer Protection calls on the Committee on Budget, as the committee responsible, to take into account the following suggestions into its motion for a resolution:

– having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014 and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012,

1. Understands the need for restructuring the MFF in order to match the modified budgetary needs due to the post-pandemic situation, high inflation and the Russian invasion of Ukraine, but underlines at the same time the needs to strengthen EU competitiveness by deepening and making the Single Market more resilient, therefore adequate financing of the Single Market programmes is necessary, as it plays a key role in the economic recovery process and achieving the EU’s consumer protection, digital and sustainability objectives;

having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union (recast),

2. Expresses hope that the newly elected college of Commissioners will support the further development of the Single Market in sectors like services, electronic communications and digital market economy; calls for concrete initiatives and actions to boost cross-border trade in services, dismantle unjustified barriers to their free movement, reduce unjustified administrative burdens for companies, and ensure adequate implementation, compliance and enforcement of existing legislation;

– having regard to Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021-2027 and to the joint declarations agreed between Parliament, the Council and the Commission in this context and the related unilateral declarations,

3. Sees big potential in the current reform of the Union Customs Code and establishing EU Customs Authority; underlines that effective simplification of customs procedures and proper enforcement of customs systems are essential for combating fraud, counterfeiting and transnational crime, driving competition, ensuring compliance with EU law and protecting consumers; reiterates the importance of an adequate and effective level of commitment appropriations to allow the modernisation of the customs union and development of electronic and more automated customs systems in the interest of greater efficiency for EU companies and streamlined protection of consumers;

– having regard to Council Regulation (EU, Euratom) 2022/2496 of 15 December 2022 amending Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021 to 2027,

4. Reiterates its call for sufficient funding and staffing necessary to ensure that the enforcement of Digital Markets Act (DMA) is efficient and adequate, guaranteeing that market investigations on gatekeepers’ compliance are done in time to maintain a fair and open digital markets for businesses and consumers;

– having regard to the Council Regulation (EU, Euratom) 2024/765 amending Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021 to 2027 (MFF Revision),

5. Notes the proposal to allocate appropriations for the Digital Services Act (DSA) in 2025, sourced from supervisory fees charged to Very Large Online Platforms and Search Engines, ensuring robust EU-wide implementation and enforcement;

– having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources,

6. Highlights the importance of allocating an adequate budget for the implementation of the EU AI Act in 2025; stresses that the level of funding budgeted in 2025 should support the timely establishment of the European Artificial Intelligence Office, the AI Board, the AI Advisory Panel, and the AI Scientific Panel, including the recruitment of around 50 FTEs;

– having regard to Rule 97 and Rule 98 of its Rules of Procedure,

7. Welcomes the increased allocation of resources for ensuring a high level of consumer protection and product safety and in market surveillance, recalls that allocating adequate resources to tackle the increasing number of illegal and non-compliant products on the market is crucial in order to effectively protect consumers and avoid the distortion of competition;

– having regard to the report of its delegation to the Conciliation Committee (A10-0014/2024),

8. Believes that additional efforts are needed to support Member States in the digitalisation of the public sector, especially for procedures that affect businesses and consumers, enabling them to conduct administrative procedures online;

1. Approves the joint text;

9. Underlines the need to allocate resources to ensure the access to internet and digitisation for all EU citizens, especially the elderly and those living in rural areas; although much progress has been made, it is necessary to end the digital gap and ensure equality of conditions for all citizens;

2. Confirms the joint statements annexed to this resolution;

10. Recalls that the Single Market Programme aims at supporting actions to support the wider uptake of strategic public procurement, including improved access for SMEs and freelancers to public procurement; notes that the adoption of best practices in public procurement for projects funded by the EU could help to avoid frequent errors and ensure proper implementation of investments;

3. Instructs its President to declare that the general budget of the European Union for the financial year 2025 has been definitively adopted and to arrange for its publication in the Official Journal of the European Union;

11. Highlights the need for EU-funding to help ensuring greater compliance of economic operators with rules set at EU-level when placing a product or a service on the market; calls in this regard for increased budget to finance development of EU capacities, such as Union testing facilities as well as action to support greater cooperation and synergy between EU-level and national market surveillance authorities to ensure that products sold both online and offline are safe, and that consumer trust is ensured, in particular for cross-border purchases and for those categories of products at risk; asks the Commission to ensure sufficient funding in that respect.

4. Instructs its President to forward this legislative resolution to the Council, the Commission, the other institutions and bodies concerned and the national parliaments.

~~ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT~~

ANNEX

~~The Chair declares under her exclusive responsibility that she did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.~~

FINAL Budget 2025 – Elements for joint conclusions

These joint conclusions cover the following sections:

1. Budget 2025

2. Statements

Summary overview

According to the elements for joint conclusions:

- The overall level of commitment appropriations in the 2025 budget is set at EUR 199 438,4 million. Overall, this leaves a margin below the MFF ceilings for 2025 of EUR 800,5 million in commitment appropriations.

- The overall level of payment appropriations in the 2025 budget is set at EUR 155 209,3 million. Overall, this leaves a margin below the MFF ceiling for 2025 of EUR 28 302,7 million in payment appropriations.

- The Flexibility Instrument for 2025 is mobilised in commitment appropriations for an amount of EUR 1 162,4 million, of which EUR 4,7 million for sub-heading 2a Economic, social and territorial cohesion, EUR 1 136,8 million for sub-heading 2b Resilience and Values, EUR 15,6 million for heading 5 Security and Defence and EUR 5,2 million for heading 6 Neighbourhood and the World.

- In accordance with Article 11(1) a of the MFF Regulation, the Single Margin Instrument is mobilised in commitment appropriations for an amount of EUR 721,0 million for heading 7 European Public Administration.

The 2025 payment appropriations related to the mobilisation of the Flexibility Instrument in the years 2022 to 2025 are estimated by the Commission at EUR 1 398,8 million. The estimated payment schedule of the related outstanding amounts for these years is detailed in the following table:

1. Budget 2025

1.1. 'Closed' lines

Unless stated otherwise below in these conclusions, all budget lines are confirmed as proposed by the Commission in the Draft Budget for 2025 as amended in Amending Letter No. 1/2025.

Additionally, unless stated otherwise, all budget lines amended by the Council and agreed by the Parliament in its reading are confirmed as amended by the Council.

For the other budget lines, the Conciliation Committee has agreed on the conclusions included in sections 1.2 to 1.7 below.

1.2. Horizontal issues

Decentralised agencies

The EU contribution (in commitment and payment appropriations) and the number of establishment plan posts for all decentralised agencies are set at the level proposed by the Commission in the Draft Budget for 2025 as amended in Amending Letter No. 1/2025, with the following exceptions:

 Under sub-heading 2b:

 The European Public Prosecutor’s Office (EPPO, budget article 07 10 08), for which the level of commitment and payment appropriations is increased by EUR 2,0 million including to finance additional 14 SNEs to support the work of the permanent chambers.

 Under heading 5:

 The European Union Agency for Law Enforcement Cooperation (Europol, budget article 12 10 01), for which 15 posts are added to the establishment plan and the level of commitment and payment appropriations is increased by EUR 5,0 million.

Executive agencies

The EU contribution (in commitment and payment appropriations) and the number of establishment plan posts for executive agencies are set at the level proposed by the Commission in the Draft Budget for 2025 as amended in Amending Letter No. 1/2025.

Pilot Projects/Preparatory Actions

A comprehensive package of 33 pilot projects/preparatory actions (PP/PA), of which 22 new, for a total amount of EUR 104,5 million in commitment appropriations is agreed as proposed by the Parliament.

This package respects the ceilings for pilot projects and preparatory actions set out in the Financial Regulation.

1.3. Expenditure headings of the financial framework - commitment appropriations

After taking into account the above conclusions on agencies and pilot projects and preparatory actions, the Conciliation Committee has agreed on the following:

Heading 1 – Single Market, Innovation and Digital

Commitment appropriations are set at the level proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2025 but with the following adjustments, agreed by the Conciliation Committee, set out in the table below:

In accordance with Article 15.3 of the Financial Regulation, the Conciliation Committee agrees to make commitment appropriations available again on the research budget lines for a total of EUR 115,9 million in commitment appropriations, i.e. an increase of EUR 20,0 million as compared to the level proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2025. The following budget line is reinforced, and its budget remarks revised accordingly:

These appropriations are part of the additional top-up to EUR 100 million (in 2018 prices) agreed in the context of the MFF revision. Including the original MFF agreement, this leaves up to EUR 152,6 million in 2018 prices available for the 2026-2027 period, of which EUR 62,6 million from the 2019 and 2020 de-commitments.

As a consequence, the agreed level of commitment appropriations is set at EUR 21 480,1 million, leaving a margin of EUR 115,9 million under the expenditure ceiling of heading 1.

Sub-heading 2a – Economic, social and territorial Cohesion

Commitment appropriations are set at the level proposed by the Commission in the Draft Budget but with the following adjustments, agreed by the Conciliation Committee, set out in the table below:

As a consequence, the agreed level of commitment appropriations is set at EUR 66 365,7 million, with no margin left under the expenditure ceiling of sub-heading 2a and the mobilisation of the Flexibility Instrument for an amount of EUR 4,7 million in accordance with Article 12 of the MFF Regulation.

Sub-heading 2b – Resilience and Values

For Erasmus+, Article 07 03 03 Promoting learning mobility of sport coaches and staff, as well as cooperation, inclusion, creativity and innovation at the level of sport organisations and sport policies would allow a contribution to the financing of actions related to the next special Olympics. The Commission will monitor the needs of the line throughout the year.

The overall needs of the EURI interest line of EUR 2 283,2 million above the financial programming for 2025 are financed in part by the remaining margin under sub-Heading 2b of EUR 4,7 million and the mobilisation of EUR 1 136,8 million under the Flexibility Instrument, an overall amount of EUR 1 141,6 million corresponding to the benchmark of 50 % of the 2025 cost overrun. The remaining 50 %, i.e. EUR 1 141,6 million will be covered by the de-commitments made since 2021 in line with Article 10a para 3(a) of the MFF Regulation. The 50% benchmark will be targeted annually.

As a consequence, the agreed level of commitment appropriations is set at EUR 11 614,4 million, with no margin left under the expenditure ceiling of sub-heading 2b and the mobilisation of the Flexibility Instrument for an amount of EUR 1 136,8 million in accordance with Article 12 of the MFF Regulation and the mobilisation of the EURI instrument for an amount of EUR 1 141,6 million in accordance with Article 10a para 3(a) of the MFF Regulation.

Heading 3 – Natural Resources and Environment

As a consequence, the agreed level of commitment appropriations is set at EUR 56 731,3 million, leaving a margin of EUR 604,7 million under the expenditure ceiling of heading 3.

Heading 4 – Migration and Border Management

As a consequence, the agreed level of commitment appropriations is set at EUR 4 791,1 million, leaving a margin of EUR 79,9 million under the expenditure ceiling of heading 4.

Heading 5 – Security and Defence

As a consequence, the agreed level of commitment appropriations is set at EUR 2 632,6 million, with no margin left under the expenditure ceiling of heading 5 and the mobilisation of the Flexibility Instrument for an amount of EUR 15,6 million in accordance with Article 12 of the MFF Regulation.

Heading 6 – Neighbourhood and the World

Commitment appropriations are set at the level proposed by the Commission in the Draft Budget but with the following adjustments, agreed by the Conciliation Committee, set out in the table below:

As a consequence, the agreed level of commitment appropriations is set at EUR 16 308,2 million, with no margin left under the expenditure ceiling of heading 6 and the mobilisation of the Flexibility Instrument for an amount of EUR 5,2 million in accordance with Article 12 of the MFF Regulation.

Heading 7 – European Public Administration

The number of posts in the establishment plans of the institutions and the appropriations proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2025 are agreed by the Conciliation Committee with the following exceptions:

 The amendments introduced by the European Council to its own section and confirmed by the European Parliament in its reading are reinstated also making due consideration of the adjustments proposed in Amending Letter 1/2025. Overall, this results in three additional posts and a level of appropriations of EUR 715,9 million, which represents an increase of EUR 195 000 in comparison with the Draft Budget as amended by Amending Letter 1/2025;

 The section of the Court of Justice of the European Union for which two posts are added to the establishment plan and the level of commitment and payment appropriations increased by EUR 140 000;

 The section of the European Economic and Social Committee for which one post is added to the establishment plan and the level of commitment and payment appropriations increased by EUR 70 000;

 The section of the European Committee of the Regions for which one post is added to the establishment plan and the level of commitment and payment appropriations increased by EUR 70 000;

 The section of the European Data Protection Supervisor for which four posts are added to the establishment plan and the level of commitment and payment appropriations increased by EUR 280 000;

 The section of the European External Action Service (EEAS) for which the level of commitment and payment appropriations increased by EUR 10 000 000.

The overall adjustment results in an increase of EUR 10,8 million of heading 7.

Section 2 – European Council and Council

Section 4 – Court of Justice

Section 6 – European Economic and Social Committee

Section 7 – European Committee of the Regions

Section 9 – European Data Protection Supervisor

Section 10 - European External Action Service

Also, the proposed - budgetary neutral – changes to the level of appropriations by budget lines for which amendments have been introduced by the European Parliament to its own section are approved, as follows:

Section 1 – European Parliament

As a consequence, the agreed level of commitment appropriations is set at EUR 12 845,0 million, with no margin left under the expenditure the ceiling of heading 7 and the mobilisation of the Single Margin Instrument for an amount of EUR 721,0 million in accordance with Article 11(1)(a) of the MFF Regulation.

Thematic special instruments: EGF, ESR, EAR and BAR

Commitment appropriations for the European Globalisation Adjustment Fund for Displaced Workers (EGF), the European Solidarity Reserve (ESR), the Emergency Aid Reserve (EAR) and the Brexit Adjustment Reserve (BAR) are set at the level proposed by the Commission in the Draft Budget.

1.4. Payment appropriations

The overall level of payment appropriations in the 2025 budget is set at the level of the Draft Budget, as amended by Amending Letter 1/2025 with the following adjustments agreed by the Conciliation Committee:

1. The agreed level of commitment appropriations for non-differentiated expenditure (headings 1 to 6), for which the level of payment appropriations is equal to the level of commitment appropriations, is taken into account. This applies to the overall reduction for the EAGF by EUR 201,1 million. Taking into account also the adjustment to the Union contribution to decentralised agencies, the combined effect is a decrease of EUR 194,1 million;

2. The adjustment under heading 7 resulting in an increase of EUR 10,8 million;

3. The payment appropriations for all new pilot projects and preparatory actions proposed by the Parliament are set at 25% of the corresponding commitment appropriations, or at the level proposed by Parliament, if lower. In the case of extension of existing pilot projects and preparatory actions, the level of payment appropriations is the level defined in the Draft Budget as amended by the Amending letter 1/2025 plus 25% of the corresponding new commitment appropriations, or at the level proposed by Parliament, if lower. The combined effect is an increase of EUR 26,1 million;

4. The adjustments to differentiated expenditure budget lines, for which the combined effect is an increase of EUR 25,5 million.

The adjustments, resulting in an overall decrease of EUR 131,7 million, are set out in the following table:

Overall, this results in a level of payment appropriations of EUR 155 209,3 million, which represents a decrease of EUR 131,7 million in comparison with the Draft Budget, as amended by Amending Letter 1/2025.

1.5. Reserves

Compared to the Draft Budget, as amended by Amending Letter 1/2025, the amount of EUR 3 billion in payment appropriations for 2025 in relation to the additional flexibilities and support from cohesion funds to the Member States affected by the natural disasters in Europe (Regional Emergency Support to Reconstruction RESTORE proposals) is entered into reserve.

1.6. Budget remarks

The text of budget remarks corresponds to the Draft Budget, as amended by Amending Letter 1/2025 with the following adjustments proposed in the letter of executability and agreed by the Conciliation Committee:

 Budget lines for which amendments have been introduced by the European Parliament to its own section are approved without modifications.

 PP 08 25 01 — Observatory of Land Grabbing Practices in the EU

Amend heading as follows:

EU observatory for agricultural land, control and access to farmland

 In accordance with Article 15.3 of the Financial Regulation, the Conciliation Committee agrees to make commitment appropriations available again on the budget line 01 02 01 01 — European Research Council. Budget remarks will be adjusted accordingly:

This is with the understanding that amendments introduced by the European Parliament or the Council cannot modify or extend the scope of an existing legal base, or impinge on the administrative autonomy of the institutions, and that the action can be covered by available resources.

1.7. Budget nomenclature

The budget nomenclature proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2025, is agreed, with the inclusion of the new pilot projects and preparatory actions. The Conciliation Committee also agrees to split the budget line 15 03 01 Reform and Growth Facility for Western Balkans – Operational expenditure in 6 distinct budget lines, per country, as follows:

 15 03 01 01 Albania

 15 03 01 02 Bosnia and Herzegovina

 15 03 01 03 Kosovo

 15 03 01 04 Montenegro

 15 03 01 05 North Macedonia

 15 03 01 06 Serbia

The corresponding budget remark will be introduced accordingly, as follows: “This appropriation is intended to cover the operational expenditure and financial support related to actions carried out under the framework of the Reform and Growth Facility for the Western Balkans for Albania / Bosnia and Herzegovina / Kosovo / Montenegro / North Macedonia / Serbia in line with Article 6 of REGULATION (EU) 2024/1449.”

3. Statements

3.1. Joint statement by the European Parliament and the Council on payment appropriations

The European Parliament and the Council call on the Commission to continue closely and actively monitoring during the year 2025 the implementation of the programmes of the current and previous MFFs (particularly in sub-heading 2a and Rural Development), also linked to the implementation of Regional Emergency Support to Reconstruction (RESTORE) in line with the final legal set up and the uptake by Member States. To that end, the European Parliament and the Council invite the Commission to present, in a timely manner, updated figures concerning the state of affairs and estimates regarding 2025 payment appropriations. If the figures show that the appropriations entered in the 2025 budget are insufficient to cover the needs, the European Parliament and the Council invite the Commission to present as soon as possible an appropriate solution, inter alia a draft amending budget, with a view to allowing the European Parliament and the Council to take any necessary decisions as soon as possible without undue delay for justified needs. Where applicable, the European Parliament and the Council will take into account the urgency of the matter, shortening the eight-week period for a decision if deemed necessary. The same applies mutatis mutandis if the figures show that the appropriations entered in the 2025 budget are higher than needed.

3.2. Joint statement by the European Parliament, the Council and the Commission on releasing the payments linked to the RESTORE proposals in the 2025 budget

The European Parliament, the Council and the Commission take note of the ongoing discussions on the Regional Emergency Support to Reconstruction (RESTORE) proposals to provide additional assistance to Member States affected by recent natural disasters. Pending the adoption of the legal base the payments linked to these proposals included in the amending letter (EUR 3 billion) are included in the adopted budget as a provision and will be released when the RESTORE proposals are adopted in line with Article 49(1) of the Financial Regulation.

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEURS HAVE RECEIVED INPUT

ENTITIES OR PERSONS FROM WHOM VICTOR NEGRESCU (RAPPORTEUR) HAS RECEIVED INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that he has received input from the following entities or persons in the preparation of the report, prior to the adoption thereof in committee:

The list above is drawn up under the exclusive responsibility of the rapporteur.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur declares that he has submitted to the concerned natural persons the European Parliament's Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

ENTITIES OR PERSONS FROM WHOM NICLAS HERBST (RAPPORTEUR) HAS RECEIVED INPUT

The list above is drawn up under the exclusive responsibility of the rapporteur.

PROCEDURE – COMMITTEE RESPONSIBLE