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REPORT (07432/2024 – C9-0048/2024 – 2024/0056(BUD))

On the Council position on Draft amending budget No 1/2024 of the European Union for the financial year 2024 Amendments of the 2024 budget required due to the MFF revision

A-9-2024-0174

Committee on Budgets · Rapporteur: Siegfried Mureşan

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Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.

Parliament approves the Council position on Draft amending budget No 1/2024, which adjusts the 2024 EU budget to reflect the revised multiannual financial framework (MFF). The amending budget increases commitment appropriations by EUR 5,833.7 million and payment appropriations by EUR 4,143.6 million, funding the Ukraine Facility, the European Defence Fund, the Western Balkans, and crisis reserves. Parliament stresses that new policy priorities require fresh money, insists on using EDF resources for STEP objectives, and calls for monitoring of payment needs and humanitarian aid. It also addresses staffing for the Artificial Intelligence Office, considering the funding solution temporary and demanding a structural solution under Heading 7.

Committee position. The Committee on Budgets proposes that Parliament approve the Council position on Draft amending budget No 1/2024 without amendments.

Key points

  1. Approves the Council position on Draft amending budget No 1/2024, enabling its adoption.
  2. Welcomes the budget's increased flexibility and fitness for purpose in meeting Union challenges.
  3. Welcomes the EUR 4.8 billion mobilisation from the Ukraine Reserve for grants to Ukraine, supporting essential services and reconstruction.
  4. Welcomes the Ukraine Facility nomenclature for scrutiny and inclusion of interest rate subsidies for 2022 MFA loans, reducing pressure on Heading 6.
  5. Regrets that three national contribution agreements for MFA+ interest subsidies are missing; expects EUR 5 million to be deducted in a future amending budget.
  6. Welcomes EUR 376 million for the European Defence Fund from STEP; calls on the Commission to monitor payment needs.
  7. Insists that additional EDF resources be used for STEP objectives, as new priorities require fresh money.
  8. Welcomes EUR 500 million for the Western Balkans but considers the nomenclature unfit; intends to review it in the 2025 procedure.
  9. Notes only EUR 500 million of the EUR 3.1 billion Heading 6 reinforcements is included; requests detailed information on managing changes.
  10. Welcomes increased crisis financing and the split of the Solidarity and Emergency Aid Reserve into two parts for easier management.
  11. Calls for monitoring humanitarian aid needs and proposes measures, noting the Flexibility Instrument reinforced by around EUR 500 million for 2024.
  12. Notes the EGF allocation reduced to EUR 33.8 million; calls for measures to meet justified requests.

Who is affected

  • Ukraine: receives grants and loans through the Ukraine Facility, with interest rate subsidies for MFA loans.
  • European Defence Fund: receives EUR 376 million reinforcement for STEP objectives.
  • Western Balkans: receives EUR 500 million, subject to adoption of the Reform and Growth Facility.
  • Artificial Intelligence Office: can use Digital Europe programme funds for external staff costs, temporarily.

Figures and deadlines

  • EUR 5,833.7 million in commitment appropriations and EUR 4,143.6 million in payment appropriations increase.
  • EUR 4.8 billion mobilised from the Ukraine Reserve for grants to Ukraine.
  • EUR 5 million included provisionally for interest rate subsidies, expected to be deducted.
  • EUR 376 million reinforcement for the European Defence Fund in 2024.
  • EUR 500 million for the Western Balkans, placed in reserve.
  • EUR 3.1 billion in reinforcements for Heading 6 between 2024 and 2027.
  • EUR 33.8 million allocation for the European Globalisation Adjustment Fund for Displaced Workers.

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.