Brussels Daily
16 Oct 2014


Brussels Daily

The European Commission is proposing to amend the 2015 EU draft budget, taking into consideration updated forecasts and estimates via “amending letter no. 1″. This a classical amending letter that updates estimated needs for the agriculture expenditure. Moreover it foresees the financing of the crisis measures in agriculture (estimated at EUR 344 million) from the specific agricultural crisis reserve. The additional resources becoming available (amounting to EUR 448,5 million compared to the draft budget 2015) allow for redeployment of payment appropriations to meet the most pressing needs elsewhere in the budget and finance programmes in other headings.  Thanks to the proposed redeployment, past and current commitments can be honoured and beneficiaries can receive the funds envisaged by the agreed EU policies.

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The amending letter No 1 (AL 1) to the draft budget for 2015 (DB 2015) covers the following:

  • The updating of the estimated needs and appropriations for agricultural expenditure. In addition to changing market factors, the AL 1/2015 also incorporates the impact of decisions in the agricultural sector since the DB 2015 was drawn up in June 2014, revised estimates of needs for some direct payments, as well as other proposals expected to have a significant effect during the budget year.
  • An update of the situation for Sustainable Fisheries Partnership Agreements, to take account of the most recent information available.
  • A redeployment of payment appropriations, which makes use of the reduced appropriations for agricultural expenditure in 2015 (amounting to EUR 448,0 million) to meet additional payment needs across headings 1a, 2, 3 and 4, so that obligations stemming from past and current commitments can be honoured and financial penalties avoided. The redeployment is made possible by the increased assigned revenues available for the European Agricultural Guarantee Fund (EAGF) in 2015, enabling a slightly higher level of EAGF expenditure to be financed with a reduced level of ‘fresh’ appropriations in the 2015 budget.
  • The adjustment of human and financial resources in view of the foreseen delegation of the Fast Track to Innovation pilot scheme to the Executive Agency for Small and Medium-sized Enterprises (EASME) and the Agricultural promotion measures to the Consumers, Health and Food Executive Agency (CHAFEA).
  • A transformation of posts in the establishment plans of the Commission, the European Ombudsman and the European Environment Agency (EEA). The requested conversion of Commission posts leads to a saving of administrative expenditure under heading 5 of EUR 0,47 million. The corresponding payment appropriations become available for redeployment.

The net budgetary impact of these changes is a reduction of EUR 448,5 million in commitment appropriations compared to the draft budget 2015. The overall level of payments remains unchanged.

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