12 EU General Budgets
| (a)
(35232)
12769/13
COM(13) 557
(b)
(35259)
12770/13
COM(13) 559
(c)
(35319)
13822/13
COM(13) 644
(d)
(35320)
13824/13
COM(13) 647
|
Draft Amending Budget No. 7 to the General Budget 2013 — General statement of revenue — Statement of expenditure by section: Section III — Commission
Draft Decision on the Mobilisation of the Flexibility Instrument
Amending letter No. 1 to the draft general budget 2014: Statement of expenditure by Section —Section III — Commission
Draft Decision on the Mobilisation of the Flexibility Instrument
|
| Legal base | Article 314 TFEU and 106a, EURATOM Treaty; co-decision; QMV
|
| Document originated | (d) 18 September 2013
|
| Date deposited | (d) 25 September 2013
|
| Department | HM Treasury
|
| Basis of consideration | Minister's letter of 4 December 2013
|
| Previous Committee Reports | (a)-(b) HC 83-xxi (2013-14), chapter 11 (20 November 2013, HC 83-xvii (2013-14), chapter 7 (16 October 2013) and HC 83-xiii (2013-14), chapter 20 (4 September 2013)
(c) HC 83-xxi (2013-14), chapter 11 (20 November 2013 and HC 83-xviii (2013-14), chapter 18 (23 October 2013)
(d) None
|
| Discussion in Council | (a)-(b) 7 October 2013
(c)-(d) 19 November 2013
|
| Committee's assessment | Politically important
|
| Committee's decision | Cleared
|
Background
12.1 The Draft Budget (DB) 2014 set out the Commission's proposals
for EU expenditure in 2014. It was the basis for negotiations
between the two arms of the Budgetary Authority (the Council and
the European Parliament), which concluded the EU General Budget
for 2014 last month.
12.2 During negotiation of the annual DB the
Commission may present amendments to its original proposal in
Amending Letters.
12.3 During the course of a financial year the
Commission presents to the Budgetary Authority Draft Amending
Budgets (DABs) proposing increases or reductions for revenue and
expenditure in the current EU General Budget — there are
normally about ten DABs each year.
12.4 The Interinstitutional Agreement of 17 May
2006 on EU budgetary and financial management allows mobilisation
of a Flexibility Instrument to meet financing of clearly identified
expenditure which could not be financed within the limits of the
ceilings available for one or more Headings of the Multiannual
Financial Framework (MFF).
12.5 DAB No. 7/2013, document (a), concerned
an increase of €150 million (£125 million) in commitment
appropriations in Heading 1b of the current MFF. The Commission
proposed that the increase in commitment appropriations for 2013
would be covered by the margin under the ceiling of Heading 1b,
that is €16 million (£13 million), and by mobilisation
of the Flexibility Instrument for €134 million (£112
million), as proposed with the draft Decision, document (b).
12.6 Amending Letter No. 1, document (c), proposed
small revisions to the Commission's original 2014 DB. The Amending
Letter also included additional assistance to Cyprus through €100
million (£84.62 million) of Structural Funds commitment appropriations
in 2014. This would be covered by mobilisation of the Flexibility
Instrument for €100 million, as proposed with the draft Decision,
document (d).
12.7 When, in November, we last considered DAB
No. 7/2013 and the associated Flexibility Instrument, documents
(a) and (b), we were unclear as to the implications of the Government's
statement that the criterion for use of the Flexibility Instrument
"was felt to be satisfied on this proposal". We asked
for clarification as to whether this meant that it was the Government
that felt the criterion to be satisfied and, if so, whether the
Government voted for the proposal. Until we were clear on these
points the documents would remain under scrutiny.[44]
The Minister's letter 4 December 2013
12.8 The Economic Secretary to the Treasury (Nicky
Morgan) responds to our questions on DAB No. 7/2013 and the associated
Flexibility Instrument, saying that she can confirm that the Government
felt that this proposal for a one-off increase in commitment appropriations
to tackle youth unemployment, poverty and social exclusion satisfied
the criterion for use of the Flexibility Instrument. She says
that the Government abstained on the measures on the grounds of
parliamentary scrutiny.
12.9 The Minister takes this opportunity to clarify
also that the additional assistance to Cyprus through €100
million of Structural Fund commitment appropriations presented
in Amending Letter No. 1, document (c), was to be covered by the
associated draft Decision on mobilisation of the Flexibility Instrument,
document (d), as agreed in the settlement on the 2014 EU General
Budget, which was adopted at the General Affairs Council on 19
November and on which the UK voted against.
Conclusion
12.10 We thank the Minister for these further
clarifications and, having no further questions, now clear the
documents.
44 See headnote. Back
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