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REPORT (13643/2020 – C90395/2020 – 2020/0298(BUD))

On the Council position on Draft amending budget No 10/2020 of the European Union for the financial year 2020 - Increase of payment appropriations in line with updated forecasts of expenditure and other adjustments to expenditure and revenue

A-9-2020-0252

Committee on Budgets · Rapporteur: Monika Hohlmeier

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Parliament's resolution on the Council position on Draft amending budget No 10/2020 for the 2020 financial year. It approves the Council position and takes note of the draft, which raises payment appropriations by EUR 1 569,3 million and adjusts revenue and some expenditure. The increase covers headings 1a, 1b, 2 and 4, including support for SMEs, farmers and partner countries hit by the Covid-19 crisis. Savings at decentralised agencies cut payment appropriations by EUR 9,1 million, and fines and penalty payments reduce member states' own resources contributions.

Committee position. The Committee on Budgets takes note of Draft amending budget No 10/2020 as submitted by the Commission and approves the Council position on it.

Key points

  1. The draft amending budget raises payment appropriations in line with updated forecasts, adjusts revenue for exchange rate differences and extra fines, and makes limited expenditure adjustments for the European Agriculture Guarantee Fund and some decentralised agencies.
  2. It proposes an overall increase in payment appropriations of EUR 1 569,3 million under headings 1a, 1b, 2 and 4.
  3. EUR 93,8 million in payment appropriations will help honour Loan Guarantee Facility obligations within COSME to support SMEs hit by the economic consequences of Covid-19.
  4. EUR 750 million in additional payment appropriations under EAFRD will finance lump-sum payments to relieve farmers and small and medium-sized agri-businesses affected by COVID-19.
  5. EUR 586 million in payment appropriations will support the Global EU response for partner countries through IPA II, ENI and DCI.
  6. A review of budget implementation at decentralised agencies identified savings that reduce payment appropriations by EUR 9,1 million.
  7. Fines and penalty payments of EUR 128 million collected until the end of September 2020 helped reduce member states' own resources contributions to the Union budget.
  8. The overall impact on the revenue side is a decrease of EUR 588 million in other revenue, rebalanced by a corresponding increase in GNI contributions.
  9. Parliament takes note of the draft amending budget as submitted by the Commission and approves the Council position on it.

Who is affected

  • Small and medium-sized enterprises: supported through the COSME Loan Guarantee Facility against the economic effects of Covid-19.
  • Farmers and small and medium-sized agri-businesses: receive lump-sum payments under EAFRD for COVID-19 relief.
  • Partner countries: supported through IPA II, ENI and DCI under the Global EU response.
  • Decentralised agencies (ESMA, EIOPA, EBA and ELA): their savings reduce payment appropriations.
  • Member states: their own resources contributions are reduced by fines and penalty payments and rebalanced by higher GNI contributions.

Figures and deadlines

  • EUR 1 569,3 million: overall increase in payment appropriations.
  • EUR 93,8 million: payment appropriations for the COSME Loan Guarantee Facility.
  • EUR 750 million: additional payment appropriations under EAFRD.
  • EUR 586 million: payment appropriations for the Global EU response.
  • EUR 9,1 million: reduction in payment appropriations from agency savings.
  • EUR 128 million: fines and penalty payments collected until the end of September 2020.
  • EUR 588 million: decrease in other revenue on the revenue side.

Legal basis: Article 314 of the Treaty on the Functioning of the European Union and Article 106a of the Treaty establishing the European Atomic Energy Community.