Explanatory Memorandum to COM(2024)100 - Amendment of Regulations (EU) 2021/522, (EU) 2021/1057, (EU) 2021/1060, (EU) 2021/1139, (EU) 2021/1229, and (EU) 2021/1755 as regards the changes to the amounts of funds for certain programmes and funds - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2024)100 - Amendment of Regulations (EU) 2021/522, (EU) 2021/1057, (EU) 2021/1060, (EU) 2021/1139, (EU) 2021/1229, and (EU) 2021/1755 ... |
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| source | COM(2024)100 |
| date | 29-02-2024 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
On 20 June 2023, the Commission adopted a proposal for the mid-term revision of the Multiannual Financial Framework1 (MFF) aiming at reinforcing the EU’s long-term budget to increase the Union’s resilience and leadership in the most urgent priorities and needs, notably strengthening the EU support to Ukraine.
On 29 February 2024, the Council adopted an amendment to Regulation (EU, Euratom) 2020/20932 with the consent of the European Parliament for the mid-term revision of the MFF.
The MFF revision includes increases of resources for several EU programmes. To mitigate the impact of the revision of the MFF on national budgets, these increases will be partly compensated by redeployments and reprioritisations within the EU budget. The net increase of funding for new priorities amounts to EUR 21 billion until the end of this MFF.
This requires modifying the expenditure ceilings, as well as, in some cases, amendments of the budgetary provisions of the legislative acts establishing the programmes and instruments concerned, in line with the provisions of point 18 of the Interinstitutional Agreement of 16 December 20203 as regards the incorporation of financial provisions in legislative acts.
Contents
- The following Regulations must be amended as the appropriate reductions to the financial envelopes of the programmes go beyond the flexibility under that Interinstitutional Agreement:
- These following changes are proposed:
- Amendments to Regulation (EU) 2021/1139 to reduce by 105 000 000 in current prices the EMFAF financial envelope under direct and indirect management, in particular:
The following Regulations must be amended as the appropriate reductions to the financial envelopes of the programmes go beyond the flexibility under that Interinstitutional Agreement:
- Regulation (EU) 2021/522 of the European Parliament and of the Council4,
- Regulation (EU) 2021/1057 of the European Parliament and of the Council5,
- Regulation (EU) 2021/1060 of the European Parliament and of the Council6,
- Regulation (EU) 2021/1139 of the European Parliament and of the Council7,
- Regulation (EU) 2021/1229 of the European Parliament and of the Council8,
- Regulation (EU) 2021/1755 of the European Parliament and of the Council9,
In addition, there is a parallel amendment increasing the financial envelope of the Border Management and Visa Instrument (BMVI), which is not included in the present proposal due to the different voting rules.
There is a pressing need to provide the Union with appropriate funding and to provide legal certainty to the preparations of the draft budget of the Union for the financial year 2025, as well as for the financial programming for the years 2026 and 2027. The Commission therefore calls on the European Parliament and the Council to ensure a rapid adoption via the use of an urgent adoption procedure.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
The proposal is based on Article 43(2), Article 164, Article 168(5), Article 175 and Article 177 of the Treaty on the Functioning of the European Union (‘TFEU’) which are the relevant legal bases for the specific provisions of the Regulations to be amended.
• Subsidiarity (for non-exclusive competence)
This proposal is in line with the subsidiarity principle, as it only affects the budgetary provisions of the Regulations to be amended, not their scope, objective, or delivery mode.
• Proportionality
This proposal respects the proportionality principle, as it is limited to changes strictly necessary to give effect to the amendment to Regulation (EU, Euratom) 2020/2093.
• Choice of the instrument
The regulations listed above are to be amended by way of a Regulation to give effect to the amendment of Council Regulation 2020/2093. The inclusion of all necessary amendments (except for the one to the Border Management and Visa Instrument) in a single legislative proposal aims at ensuring a coherent negotiation process as well as at facilitating the adoption by the legislator as a matter of urgency.
3. BUDGETARY IMPLICATIONS
The amendment to Regulation (EU, Euratom) 2020/2093 includes reinforcements of several programmes and priorities, whose impact on national budgets is mitigated by redeployments of funds from a set of EU programmes. This proposal aims at implementing these redeployments.
Under Heading 2a, this proposal will result in a reduction of the resources allocated to Interregional Innovation Investments by EUR 75 000 000 in current prices (EUR 64 020 145 in 2018 prices), the European Urban Initiative by EUR 55 000 000 in current prices (EUR 46 929 686 in 2018 prices), ESF+ Transnational Cooperation by EUR 65 000 000 in current prices (EUR 55 473 996 in 2018 prices). It will also make it possible to reduce the amount used as technical assistance at the initiative of the Commission; the reduction is estimated at EUR 210 000 000 in current prices (EUR 178 656 655 in 2018 prices) for the period 2025-2027.
Under Heading 2b, it is proposed to reduce the EU4Health amount by EUR 1 000 000 000 in current prices (845 000 000 in 2018 prices) for the period 2025-2027 from the programme-specific adjustment defined in Article 5 and Annex II of the Council Regulation (EU, Euratom) 2020/20931.
Under Heading 3, it is proposed to reduce the resources allocated to the Public Sector Loan Facility by EUR 150 000 000. The European Maritime, Fisheries and Aquaculture Fund’s (EMFAF) direct and indirect management resources for the period 2025-2027 will be reduced by EUR 105 000 000.
Concerning special instruments, it is proposed to reduce the resources provisionally allocated to the Brexit Adjustment Reserve by EUR 584 264 090.
The above reductions are expressed in current prices and set a limit on the amounts of commitment appropriations to be included in the annual budgets for years 2025, 2026 and 2027.
4. OTHER ELEMENTS
Implementation plans and monitoring, evaluation and reporting arrangements
The proposed amendments aim to give effects to the mid-term revision of the MFF and do not aim to modify the monitoring and reporting obligations of the Regulations that are proposed to be amended.
• Detailed explanation of the specific provisions of the proposal
The proposal is limited to the introduction of targeted amendments to existing Regulations. It aims to give effect to the mid-term revision of the MFF, in addition to Regulation (EU, Euratom) 2020/2093.
Amendments to Regulation (EU) 2021/522 to adjust the additional allocation to the financial envelope for the EU4Health programme through a reduction of EUR 1 000 000 000 in current prices, and in particular:
- In Article 5, paragraph 2, the programme-specific adjustment provided for in Article 5 of the MFF Regulation, expressed in 2018 prices, is reduced from EUR 2 900 000 000 to 2 055 000 000.
Amendment to Regulation (EU) 2021/1057 to reduce the financial envelope of the European Social Fund Plus (ESF+) Transnational cooperation programmes by EUR 65 000 000 in current prices (EUR 55 473 996 in 2018 prices), and in particular:
- In Article 5, paragraph 2 the initial allocation of EUR 175 000 000 in 2018 prices for the Transnational Cooperation part of the European Social Fund Plus (ESF+) is reduced by EUR 55 473 996 in 2018 prices.
Amendments to Regulation (EU) 2021/1060 to reduce the financial envelopes of Interregional Innovation Investments (I3) by EUR 75 000 000 in current prices (EUR 64 020 145 in 2018 prices), European Urban Initiative by EUR 55 000 000 in current prices (EUR 46 929 686 in 2018 prices), ESF+ Transnational cooperation programmes by EUR 65 000 000 in current prices (EUR 55 473 996 in 2018 prices) and to adjust the corresponding technical assistance rate. In particular:
- In Article 109, paragraph 3 is amended as to set the allocation for technical assistance at the initiative of the Commission as up to 0,35% of the resources for economic, social and territorial cohesion in order to allow for cuts on technical assistance at the initiative of the Commission.
- In Article 110 i, point (f) is amended as to reduce the allocation for interregional innovation investments by EUR 75 000 000 in current prices, paragraph 4 is amended as to reduce the allocation for the European Urban Initiative by EUR 55 000 000 in current prices, and paragraph 5 is amended as to reduce the allocation for Transnational Cooperation under the ESF+ by EUR 65 000 000 in current prices.
Amendments to Regulation (EU) 2021/1139 to reduce by 105 000 000 in current prices the EMFAF financial envelope under direct and indirect management, in particular:
- In Article 7, paragraph 1 is amended as to set the financial envelope for direct and indirect management under EMFAF for EUR 692 000 000 in current prices.
Amendments to Regulation (EU) 2021/1229 to reduce by EUR 150 000 000 in current prices the resources from the Union budget for the Public Sector Loan Facility and setting the available resources for year 2025-2027 to zero, in particular:
- In Article 5, subparagraph a of paragraph 1 is amended as to reduce the resources from Union budget from EUR 250 000 000 to EUR 100 000 000 in current prices.
Amendments to Regulation (EU) 2021/1755 to reduce the remaining provisional allocation that becomes available in 2025 by EUR 584 264 090 in current prices and in particular:
- In Article 4, paragraph 2 is amended as to reduce the maximum resources by 584 264 090. Point (b) of the first subparagraph of paragraph 3 is amended as to reflect that reduction.