12608/14 IS/sh 1 DG G II A

Transcription

1 Council of the European Union Brussels, 2 September 2014 (OR. en) 12608/14 BUDGET 16 EXPLANATORY MEMORANDUM Subject: Draft budget of the European Union for the financial year 2015: Council position of 2 September /14 IS/sh 1

2 CONTTS Page I. INTRODUCTION... 5 II. MAIN FEATURES OF THE COUNCIL'S POSITION... 8 III. ESTIMATED REVUE IV. ESTIMATED EXPDITURE A. Administrative expenditure for each institution: - European Parliament - Section I European Council and Council - Section II Commission - Section III Administrative appropriations - Publications Office (OP) European Anti-Fraud Office (OLAF) European Personnel Selection Office (EPSO) Office for the Administration and Payment of Individual Entitlements (PMO) Office for Infrastructure and Logistics in Brussels (OIB) Office for Infrastructure and Logistics in Luxembourg (OIL) Court of Justice of the European Union - Section IV European Court of Auditors - Section V European Economic and Social Committee - Section VI Committee of the Regions - Section VII European Ombudsman - Section VIII European Data Protection Supervisor - Section IX European External Action Service - Section X /14 IS/sh 2

3 Page B. Commission expenditure by policy area: - Title 01 - Economic and financial affairs Title 02 - Enterprise and industry Title 03 - Competition Title 04 - Employment, social affairs and inclusion Title 05 - Agriculture and rural development Title 06 - Mobility and transport Title 07 - Environment Title 08 - Research and innovation Title 09 - Communications networks, content and technology Title 10 - Direct research Title 11 - Maritime affairs and fisheries Title 12 - Internal market and services Title 13 - Regional and urban policy Title 14 - Taxation and customs union Title 15 - Education and culture Title 16 - Communication Title 17 - Health and consumer protection Title 18 - Home affairs Title 19 - Foreign policy instruments /14 IS/sh 3

4 - Title 20 - Trade Title 21 - Development and cooperation Title 22 - Enlargement Title 23 - Humanitarian aid and civil protection Title 24 - Fight against fraud Title 25 - Commission's policy coordination and legal advice Title 26 - Commission's administration Title 27 - Budget Title 28 - Audit Title 29 - Statistics Title 30 - Pensions and related expenditure Title 31 - Language services Title 32 - Energy Title 33 - Justice Title 34 - Climate action Title 40 - Reserves Budget lines related to administrative expenditure under heading /14 IS/sh 4

5 I. INTRODUCTION On 2 September 2014, the Council adopted its position on the draft general budget of the European Union for the financial year 2015, details of which are set out in the present explanatory memorandum. A first technical annex, set out in Addenda 1 to 6 to this explanatory memorandum, contains a breakdown by heading of the multiannual financial framework (MFF) as well as corresponding detailed figures for each institution and by policy area. A second technical annex, set out in Addendum 7 to this explanatory memorandum, contains the changes made to the nomenclature, remarks and establishment plans /14 IS/sh 5

6 COUNCIL DECISION ADOPTING THE COUNCIL'S POSITION ON THE DRAFT GERAL BUDGET OF THE EUROPEAN UNION FOR THE FINANCIAL YEAR 2015 THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, and in particular Article 314(3) thereof, in conjunction with the Treaty establishing the European Atomic Energy Community and in particular Article 106a thereof, Whereas: 1. on 25 June 2014, the Commission submitted a proposal containing the draft general budget of the European Union for the financial year , 2. the Council examined the Commission proposal with a view to defining a position consistent, on the revenue side, with Council Decision 2007/436/EC, Euratom of 7 June 2007 on the system of the European Communities' own resources 2, and, on the expenditure side, with Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years , COM(2014) 300 final. OJ L 163, , p. 17. OJ L 347, , p /14 IS/sh 6

7 HAS DECIDED AS FOLLOWS: Sole Article The Council's position on the draft general budget of the European Union for the financial year 2015 was adopted by the Council on 2 September The full text can be accessed for consultation or downloading on the Council's website: Done at Brussels, on 2 September For the Council The President 12608/14 IS/sh 7

8 II. MAIN FEATURES OF THE COUNCIL'S POSITION ON THE DRAFT GERAL BUDGET FOR THE FINANCIAL YEAR 2015 A. The Council adopted its position on the draft budget (DB) for The main features of this position are as follows: AGGREGATE EXPDITURE 1 AS A RESULT OF THE COUNCIL'S POSITION (EUR million - rounded off) Commitment appropriations (c/a) Payment appropriations (p/a) B. Under the Council's position on the DB for 2015, commitment appropriations increase by % compared to the 2014 budget 2 and payment appropriations increase by %. The total amount of payment appropriations provided for in the Council's position on the DB for 2015 corresponds to 1.00 % of the EU gross national income (GNI) Amounts include appropriations foreseen for special instruments. Amending budget (AB) No 1/2014 included. Based on the May 2014 forecast of GNI /14 IS/sh 8

9 C. A summary of the Council's position on the DB for 2015, by heading of the MFF, is given in the following tables: BREAKDOWN BY HEADING FOR "TOTAL EXPDITURE" IN THE MFF HEADINGS /1 Budget 2014 (AB No 1/2014 incl.) (Adjusted / Member pensions) Difference from DB 2015 (amount) Difference from Budget 2014 (AB No 1/2014 incl.) (Adjusted / Member pensions) (%) 1 Smart and inclusive growth ,69% +5,19% flexibility instrument ceiling margin a Competitiveness for growth and jobs ,88% +24,53% ceiling margin b Economic, social and territorial cohesion ,63% +0,84% flexibility instrument ceiling margin 0 2 Sustainable growth: natural resources ,14% +0,54% Of which: European Agricultural Guarantee Fund (EAGF) Market related expenditure and direct payments ceiling margin ,18% +0,16% sub-ceiling net transfer between eagf and eafrd excluded when calculating the sub-margin (1) sub-margin Security and citizenship ,29% +10,47% ceiling margin Global Europe ,22% +12,14% ceiling margin Administration ,14% +2,13% Of which: Administrative expenditure of the institutions ceiling margin ,23% +1,22% sub-ceiling sub-margin Compensations p.m. p.m. -100,00% -100,00% ceiling 0 margin 0 MFF Headings ,67% +3,42% flexibility instrument ceiling margin (2) Appropriations as % of GNI (3)(4) 1,06% 1,01% 1,03% 1,00% 0,00% -0,02% (1) This amount, resulting from the rounding for the calculations of the sub-ceiling and the net transfer, is excluded when calculating the sub-margin. (2) These amounts are calculated not taking into account appropriations for special instruments (EAR, EGF, EUSF). (3) The GNI for 2014 is based on the technical adjustment of the financial framework for 2014 in line with movements in GNI (COM(2013) 928 final) of 20 December (4) The GNI for 2015 is based on the forecast of GNI issued after the Advisory Committee on Own Resources (ACOR) meeting held on 19 May /14 IS/sh 9

10 BREAKDOWN FOR "SPECIAL INSTRUMTS" /1 Budget 2014 (AB No 1/2014 incl.) (Adjusted / Member pensions) Difference from DB 2015 (amount) Difference from Budget 2014 (AB No 1/2014 incl.) (Adjusted / Member pensions) (%) Appropriation c/a p/a Emergency Aid Reserve (EAR) ,02% European Globalisation Adjustment Fund (EGF) ,00% -50,00% European Union Solidarity Fund (EUSF) p.m ,67% Special Instruments ,97% -35,71% GLOBAL AMOUNTS FOR "TOTAL EXPDITURE" IN THE MFF HEADINGS AND "SPECIAL INSTRUMTS" /1 Budget 2014 (AB No 1/2014 incl.) (Adjusted / Member pensions) Difference from DB 2015 (amount) Difference from Budget 2014 (AB No 1/2014 incl.) (Adjusted / Member pensions) (%) MFF Headings ,67% +3,42% Special Instruments ,97% -35,71% Grand total ,71% +3,32% Appropriations as % of GNI (1)(2) 1,06% 1,01% 1,04% 1,00% 0,00% -0,02% (1) The GNI for 2014 is based on the technical adjustment of the financial framework for 2014 in line with movements in GNI (COM(2013) 928 final) of 20 December (2) The GNI for 2015 is based on the forecast of GNI issued after the Advisory Committee on Own Resources (ACOR) meeting held on 19 May The detailed results are set out in the parts of this explanatory memorandum relating to the various sections and policy areas of the budget. 1 1 See also ADD 1 to ADD 7 to this explanatory memorandum /14 IS/sh 10

11 D. When adopting its position on the DB for 2015, the Council took into account the following principles: 1. GERALLY - to work within the framework of the budget guidelines established for the 2015 budgetary exercise in the Council conclusions adopted on 18 February ; - to follow an approach leading to a budget complying with budgetary discipline and sound financial management, as well as taking duly into account the ongoing economic and budgetary constraints in Member States; - to provide adequate funding for the European Union's various priorities, determining appropriations on the basis of past and current budget implementation and realistic absorption capacities; - to foresee the necessary appropriations enabling the taking-off of the new programmes in this second year of the MFF ; - to leave adequate margins under the ceilings of the headings and subheadings of the MFF, with the exception of sub-heading 1b, in order to be able to cope with unforeseen situations; - to keep payment appropriations firmly under control in all headings and sub-headings of the MFF and to create a sufficient margin to cover unforeseen events, resulting in a reduction in payment appropriations in particular under (sub-)headings 1a, 1b, 2 and 4. 1 Doc. 5852/ /14 IS/sh 11

12 As regards administrative expenditure of the institutions, the Council recalls the importance of limiting the increase in 2015 and of reducing staff in line with the -5 % target over the period set in the Interinstitutional Agreement of 2 December 2013 on budgetary discipline, on cooperation in budgetary matters and on sound financial management 1. It examined the administrative budgets of the institutions on the following basis: to keep under strict control the volume of administrative expenditure of the institutions, in line with the approach followed by the Member States for their national civil services; to set the administrative budget of each institution at the appropriate level, taking into account their specificities and real and justified needs; to carry out targeted reductions and increasing the standard flat rate abatement on salaries for some institutions and offices, taking into account their past and current budget implementation and vacancy rates; to retain the Commission's proposal to reduce staff by -1 % per year as from This approach has resulted in an appropriate level of administrative expenditure ensuring a proper functioning of the institutions. The Council also focused on administrative support expenditure linked to operational programmes and of executive agencies. In this respect, it decided to carry out targeted reductions on the basis of the same principles as those followed for administrative expenditure of the institutions. 1 OJ C 373, , p /14 IS/sh 12

13 As regards decentralised agencies, the Council reduced the overall level of appropriations by -EUR 7 million. Only some of the agencies whose budgets increased in comparison to their respective 2014 budgets are affected by those reductions. The Council considered that the absorption capacities for these agencies will be lower than the forecasts made by the Commission. 1 The Council approved the following statement on payment appropriations: "The Council asks the Commission to submit as early as possible the letter of amendment for agriculture (including information about the possible carry-over of assigned revenue) in order to appropriately calibrate the level of resources in heading 2 (Sustainable growth: natural resources) in the 2015 budget. Furthermore, the Council asks the Commission to submit a draft amending budget if the payment appropriations entered in the 2015 budget are insufficient to cover expenditure under sub-heading 1a (Competitiveness for growth and jobs), sub-heading 1b (Economic, social and territorial cohesion), heading 2 and heading 4 (Global Europe) of the multiannual financial framework. It urges the Commission to present as early as possible updated figures concerning the state of affairs and estimates regarding payment appropriations under sub-heading 1b and, if necessary, to present a draft amending budget for this sole purpose. The Council will take position on the draft amending budget as quickly as possible in order to avoid any shortfall in payment appropriations." 1 For details see point IV, B below and also ADD 7 to this explanatory memorandum /14 IS/sh 13

14 The Council also approved the following statement on 5 % staff reduction: "The Council recalls the agreement reached between the European Parliament, the Council and the Commission to progressively render 5 % of the staff as in the establishment plan on 1 January 2013, to be effected between 2013 and 2017, as inscribed in Point 27 of the Interinstitutional Agreement of 2 December 2013 on budgetary discipline, on cooperation in budgetary matters and on sound financial management. The Council takes note of the Commission's monitoring of the progress towards the 5 % staff reduction target already achieved to date by a number of institutions, bodies and agencies. It calls on all institutions and bodies to continue implementing the remaining staff reduction until the end of the five year period , as presented in the table in the Annex. The Council also underlines the importance of monitoring closely the appropriations for all categories of external staff, against the backdrop of the additional capacity built up by the increase of working time to 40 hours per week. In line with Article 38(3)(b) of the Financial Regulation, it invites the Commission to present an overview of consolidated data on all external staff employed by the Union, displayed by type of contract and comparable between institutions and bodies and between years." 12608/14 IS/sh 14

15 Annex to the Council statement on 5 % staff reduction Institution Establishment plan posts - All institutions Evolution to date vis-à-vis the -5 % reduction target over 5 years budget (a) reduction target Annual reference target (b) (c) Posts reduction implementation Remaining distance to -5 % target -5 % -1 % Total Posts (d) % points European Parliament ,9 % European Council and Council ,5 % Commission ,0 % Court of Justice of the European Union ,0 % Court of Auditors ,9 % European Economic and Social Committee ,1 % Committee of the Regions ,1 % European Ombudsman 64-3 (e) ,7 % European Data-Protection Supervisor 43-2 (e) ,0 % European External Action Service ,0 % Total institutions ,6 % (a) Authorised 2012 posts excluding Croatia enlargement. (b) ar projection over 5 years at 1 % per year, rounded figures. (c) Sources: budget, including amending budget No 1/2013, excluding Croatia enlargement draft budget (SEC(2013) 370 of ), Document I page 65, adjusted for transformations of posts into appropriations / transformations of appropriations into posts and transfers between institutions draft budget. (d) Including additional posts granted by the budgetary authority in 2013, as follows: 29 for the European Parliament, 1 for the European Ombudsman, 2 for the European Data Protection Supervisor; including 30 posts requested in 2014 for the European Parliament. (e) By the end of 2017, the European Ombudsman and the European Data Protection Supervisor should reduce their posts by 2 and 3 respectively /14 IS/sh 15

16 2. IN OTHER GERAL RESPECTS (a) Nomenclature The Council retained the nomenclature as proposed in the DB for (b) Legal bases Special care was taken to comply with the provisions of the Interinstitutional Agreement as regards legal bases. (c) Programme statements Particular attention was given to the programme statements presented by the Commission /14 IS/sh 16

17 3. EXPDITURE BY HEADING OF THE MULTIANNUAL FINANCIAL FRAMEWORK As to expenditure under the different headings and sub-headings of the MFF, the Council's position is to: (a) in the case of expenditure for smart and inclusive growth (heading 1 of the MFF) (i) as regards competitiveness for growth and jobs expenditure (subheading 1a of the MFF) establish the level of commitment appropriations, targeting a total reduction of -EUR million in the appropriations requested in the DB for 2015 on a number of specific budget lines including administrative support expenditure; set the level of payment appropriations, reducing the appropriations requested in the DB for 2015 by a total amount of -EUR million, of which -EUR 113 million in large infrastructure projects, -EUR 998 million in the Common Strategic Framework for Research and Innovation, -EUR 152 million in the Connecting Europe Facility and -EUR 73 million in other programmes; the amounts mentioned above also take into account reductions in contributions to decentralised agencies for a total amount of -EUR 2.9 million in commitment and payment appropriations under this sub-heading; the margin available under sub-heading 1a is EUR million /14 IS/sh 17

18 (ii) concerning economic, social and territorial cohesion expenditure (sub-heading 1b of the MFF) maintain the level of commitment appropriations as requested in the DB for 2015; set the level of payment appropriations, reducing the appropriations requested in the DB for 2015 for programmes under the new programming period by a total amount of -EUR 220 million, in particular in the field of Transition regions (-EUR 41.5 million), Competitiveness (-EUR 90.5 million), Outermost and sparsely populated regions (-EUR 5.0 million), Cohesion Fund (-EUR 39.4 million), Connecting Europe Facility (-EUR 5.4 million), European territorial cooperation (-EUR 25 million), Technical assistance and innovative actions (-EUR 8.2 million) and European Aid to the Most Deprived (-EUR 5 million) on the basis of available information, still resulting in an increase of % in comparison with the 2014 budget; the margin under sub-heading 1b is equal to zero and is left unchanged; the Flexibility Instrument would be mobilised for an amount of EUR 79.8 million as proposed by the Commission /14 IS/sh 18

19 (b) regarding expenditure for sustainable growth: natural resources (heading 2 of the MFF) reduce the level of commitment appropriations requested in the DB for 2015 by -EUR 70.6 million on administrative support expenditure lines, on market-support expenditure lines and on operational lines under the European Agricultural Guarantee Fund, the European Maritime and Fisheries Fund and the Programme for Environment and Climate Action (LIFE); set the level of payment appropriations, reducing the appropriations requested in the DB for 2015 by a total amount of -EUR million, of which -EUR 48.5 million in the European Agricultural Guarantee Fund, -EUR 45 million in the European Agricultural Fund for Rural Development, -EUR 30.1 million in the European Maritime and Fisheries Fund and the annual actions related to fisheries, and -EUR 21.6 million in the LIFE Programme, on the basis of past, current or expected budget implementation; these amounts - estimated on the basis of information currently available - may be reviewed in the light of the letter of amendment on agriculture expected in autumn; the amounts mentioned above also take into account reductions in contributions to decentralised agencies for an additional amount of -EUR 0.1 million in commitment and payment appropriations under this heading; the margin available under heading 2 is EUR million /14 IS/sh 19

20 (c) in the case of expenditure relating to security and citizenship (heading 3 of the MFF) establish the level of commitment appropriations with a total reduction of -EUR 30.2 million of the appropriations requested in the DB for 2015 on a number of budget lines concerning administrative support expenditure (-EUR ) and operational expenditure for new programmes (-EUR 25.8 million); set the level of payment appropriations, including a total reduction of -EUR 28.5 million of the appropriations requested in the DB for 2015 on a number of budget lines concerning administrative support expenditure (-EUR ) and operational expenditure for new programmes (-EUR 24 million); the reductions focused on new programmes with a low implementation rate at this early stage and taking into account their absorption capacity, as well as on support expenditure taking into consideration past implementation rates; the amounts mentioned above also take into account reductions in contributions to decentralised agencies of -EUR 4 million in commitment and payment appropriations under this heading; the margin available under heading 3 is EUR million /14 IS/sh 20

21 (d) in the context of expenditure relating to global Europe (heading 4 of the MFF) establish the level of commitment appropriations, targeting a total reduction by -EUR 70 million in the appropriations requested in the DB for 2015 on a number of specific budget lines; set the level of payment appropriations, reducing the appropriations requested in the DB for 2015 by a total amount of -EUR 384 million, of which -EUR 179 million in the Development Cooperation Instrument and -EUR million in the Instrument for Preaccession assistance, on the basis of past, current or expected budget implementation, as well as realistic absorption capacities; the margin available under heading 4 is EUR million. (e) regarding administration (heading 5 of the MFF) - the position of the Council is summarised in the table on the next page: 12608/14 IS/sh 21

22 ADMINISTRATIVE EXPDITURE /1 Budget 2014 (Adjusted / Member pensions) Difference from DB 2015 (amount) Difference from Budget 2014 (Adjusted / Member pensions) (%) p/a p/a p/a p/a Pensions and European Schools ,94% Pensions ,00% Staff Pensions ,85% Pensions of former Members ,14% European Schools ,45% Administrative expenditure of the institutions ,22% Section III - Commission ,57% Commission, excluding Offices ,74% Annex 2 - Publications Office ,62% Annex 3 - European Anti-Fraud Office ,59% Annex 4 - European Personnel Selection Office ,70% Annex 5 - Office for Administration and Payment of Individual Entitlements Annex 6 - Office for Infrastructure and Logistics Brussels Annex 7 - Office for Infrastructure and Logistics Luxembourg ,35% ,83% ,24% Other institutions ,81% Section I - European Parliament ,24% Section II - European Council and Council ,52% Section IV - Court of Justice of the European Union ,03% Section V - Court of Auditors ,44% Section VI - European Economic and Social Committee ,10% Section VII - Committee of the Regions ,50% Section VIII - European Ombudsman ,70% Section IX - European Data Protection Supervisor ,72% Section X - European External Action Service ,45% 5 Administration ,13% - an overall amount of EUR million was agreed for pensions and European Schools, representing an increase of % compared to the 2014 budget, as proposed in the DB for 2015: PSIONS AND EUROPEAN SCHOOLS Budget 2014 Budget 2014 (Adjusted / Member pensions) DB 2015 Difference (amount) Difference (%) /2 Pensions ,00% Staff Pensions ,85% Pensions of former Members ,14% European Schools ,45% 5.1 Pensions and European Schools ,94% 12608/14 IS/sh 22

23 - the margin available under heading 5 is EUR million; - as regards staff levels, the Council accepted the establishment plans as proposed by the Commission in the DB for However, a budgetary neutral technical adjustment was made to the establishment plans of the European Council and Council and the European External Action Service: One AST 4 post in the European Council and Council's establishment plan was transferred to the European External Action Service, following the transfer of the corresponding tasks /14 IS/sh 23

24 III. ESTIMATED REVUE 1. According to the Council's position on the DB for 2015, the European Union's total budget revenue amounts to EUR , equivalent to 1.00 % of the EU gross national income (GNI) 1. The own resources needed to finance the European Union's DB for 2015, as resulting from the Council's position, represent 0.99 % of EU GNI, less than the ceiling of 1.23 % of GNI, as arrived at by the method of calculation in Article 3(1) of Council Decision 2007/436/EC, Euratom of 7 June 2007 on the system of the European Communities' own resources 2. The estimates of miscellaneous revenue, dependent on contributions from salaries, and the related consolidated tables were adjusted in line with the decisions taken on the requests for appropriations and posts by the various institutions. The revenue to finance the Council's position on the DB for 2015 is shown in the tables on the following pages. 1 2 Based on the May 2014 forecast of GNI. OJ L 163, , p /14 IS/sh 24

25 A. FINANCING OF THE GERAL BUDGET Appropriations to be covered during the financial year 2015 pursuant to Article 1 of Council Decision 2007/436/EC, Euratom of 7 June 2007 on the system of the European Communities' own resources EXPDITURE Budget 2015 Budget Change (%) 1. Smart and inclusive growth Sustainable growth: natural resources Security and citizenship Global Europe Administration Compensation p.m Special instruments Total expenditure REVUE Budget 2015 Budget Change (%) Miscellaneous revenue (Titles 4 to 9) Surplus available from the preceding financial year (Chapter 3 0, Article 3 0 0) p.m. p.m. Surplus of own resources resulting from the repayment of the surplus of the p.m. p.m. Guarantee Fund for external actions (Chapter 3 0, Article 3 0 2) Balance of own resources accruing from VAT and GNP/GNI-based own resources for earlier years (Chapters 3 1 and 3 2) p.m. p.m. Total revenue for Titles 3 to Net amount of customs duties and sugar levies (Chapters 1 1 and 1 2) VAT-based own resource at the uniform rate (Tables 1 and 2, Chapter 1 3) Remainder to be financed by the additional resource (GNI-based own resource, Table 3, Chapter 1 4) Appropriations to be covered by the own resources referred to in Article 2 of Decision 2007/436/EC, Euratom Total revenue The figures in this column correspond to those in the 2014 budget (OJ L 51, , p. 1) plus amending budget No 1/2014. The third subparagraph of Article 310(1) of the Treaty on the Functioning of the European Union reads: "The revenue and expenditure shown in the budget shall be in balance". The own resources for the 2015 budget are determined on the basis of the budget forecasts adopted at the 160th meeting of the Advisory Committee on Own Resources on 19 May /14 IS/sh 25

26 TABLE 1 Calculation of capping of harmonised value added tax (VAT) bases pursuant to Article 2(1)(b) of Decision 2007/436/EC, Euratom Member State 1 % of noncapped VAT base 1 % of gross national income Capping rate (in %) 1 % of gross national income multiplied by capping rate 1 % of capped VAT base 1 Member States whose VAT base is capped (1) (2) (3) (4) (5) (6) Belgium Bulgaria Czech Republic Denmark Germany Estonia Ireland Greece Spain France Croatia Croatia Italy Cyprus Cyprus Latvia Lithuania Luxembourg Luxembourg Hungary Malta Malta Netherlands Austria Poland Portugal Romania Slovenia Slovenia Slovakia Finland Sweden United Kingdom Total The base to be used does not exceed 50 % of GNI /14 IS/sh 26

27 TABLE 2 Breakdown of own resources accruing from VAT pursuant to Article 2(1) (b) and (4) of Decision 2007/436/EC, Euratom (Chapter 1 3) Member State 1 % of capped VAT base Uniform rate of VAT own resource (in %) VAT-based own resource at uniform rate (1) (2) (3) = (1) (2) Belgium Bulgaria Czech Republic Denmark Germany Estonia Ireland Greece Spain France Croatia Italy Cyprus Latvia Lithuania Luxembourg Hungary Malta Netherlands Austria Poland Portugal Romania Slovenia Slovakia Finland Sweden United Kingdom Total /14 IS/sh 27

28 TABLE 3 Determination of uniform rate and breakdown of resources based on gross national income pursuant to Article 2(1)(c) of Decision 2007/436/EC, Euratom (Chapter 1 4) Member State 1 % of gross national income Uniform rate of "additional base" own resource "Additional base" own resource at uniform rate (1) (2) (3) = (1) (2) Belgium Bulgaria Czech Republic Denmark Germany Estonia Ireland Greece Spain France Croatia Italy Cyprus Latvia , Lithuania Luxembourg Hungary Malta Netherlands Austria Poland Portugal Romania Slovenia Slovakia Finland Sweden United Kingdom Total Calculation of rate: ( ) / ( ) = /14 IS/sh 28

29 TABLE 4 Correction of budgetary imbalances for the United Kingdom for the year 2014 pursuant to Article 4 of Decision 2007/436/EC, Euratom (Chapter 1 5) Coefficient 1 (%) Amount 1. United Kingdom s share (in %) of notional uncapped VAT base United Kingdom s share (in %) of enlargement-adjusted total allocated expenditure (1) (2) Total allocated expenditure Enlargement related expenditure Enlargement-adjusted total allocated expenditure = (4) (5) United Kingdom s correction original amount = (3) (6) 0, United Kingdom s advantage Core United Kingdom s correction = (7) (8) Windfall gains deriving from traditional own resources Correction for the United Kingdom = (9) (10) Rounded percentages. The amount of enlargement-related expenditure corresponds to total allocated expenditure in the ten Member States which joined the Union on 1 May 2004 and the two Member States which joined the Union on 1 January 2007, except for agricultural direct payments and market-related expenditure as well as that part of rural development expenditure originating from the EAGGF, Guarantee Section. This amount is deducted from total allocated expenditure to ensure that expenditure which is unabated before enlargement remains so after enlargement. The "UK advantage" corresponds to the effects arising for the United Kingdom from the changeover to capped VAT and the introduction of the GNP/GNI-based own resource. These windfall gains correspond to the net gains of the United Kingdom resulting from the increase from 10 to 25 % as of 1 January 2001 in the percentage of traditional own resources retained by Member States to cover the collection costs of traditional own resources (TOR) /14 IS/sh 29

30 TABLE 5 Calculation of the financing of the correction for the United Kingdom amounting to EUR (Chapter 1 5) Member State Percentage share of GNI base Shares without the United Kingdom Shares without Germany, the Netherlands, Austria, Sweden and the United Kingdom Three quarters of the share of Germany, the Netherlands, Austria and Sweden in column 2 Column 4 distributed in accordance with column 3 (1) (2) (3) (4) (5) Financing scale (6) = (2) + (4) + (5) Financing scale applied to the correction Belgium Bulgaria Czech Republic Denmark Germany Estonia Ireland Greece Spain France Croatia Italy Cyprus Latvia Lithuania Luxembourg Hungary Malta (7) 12608/14 IS/sh 30

31 Member State Percentage share of GNI base Shares without the United Kingdom Shares without Germany, the Netherlands, Austria, Sweden and the United Kingdom Three quarters of the share of Germany, the Netherlands, Austria and Sweden in column 2 Column 4 distributed in accordance with column 3 (1) (2) (3) (4) (5) Financing scale (6) = (2) + (4) + (5) Financing scale applied to the correction Netherlands Austria Poland Portugal Romania Slovenia Slovakia Finland Sweden United Kingdom Total (7) The calculations are made to 15 decimal places /14 IS/sh 31

32 TABLE 6 Summary of financing 1 of the general budget by type of own resource and by Member State Member State Net sugar sector levies (75 %) Traditional own resources (TOR) Net customs duties (75 %) Total net traditional own resources (75 %) Collection costs (25 % of gross TOR) (p.m.) VAT-based own resource VAT and GNI-based own resources, including adjustments GNI-based own resource United Kingdom correction (1) (2) (3) = (1) + (2) (4) (5) (6) (7) Total national contributions (8) = (5) + (6) + (7) Share in total national contributions (%) Total own resources 2 (9) (10) = (3) + (8) Belgium Bulgaria Czech Republic Denmark Germany Estonia Ireland Greece Spain France Croatia , Italy Cyprus p.m. (own resources + other revenue = total revenue = total expenditure); ( = = ). Total own resources as percentage of GNI: ( ) / ( ) = 0.99 %; own resources ceiling as percentage of GNI: 1.23 % /14 IS/sh 32

33 Member State Net sugar sector levies (75 %) Traditional own resources (TOR) Net customs duties (75 %) Total net traditional own resources (75 %) Collection costs (25 % of gross TOR) (p.m.) VAT-based own resource VAT and GNI-based own resources, including adjustments GNI-based own resource United Kingdom correction (1) (2) (3) = (1) + (2) (4) (5) (6) (7) Total national contributions (8) = (5) + (6) + (7) Share in total national contributions (%) Total own resources 1 (9) (10) = (3) + (8) Latvia Lithuania Luxembourg Hungary Malta Netherlands Austria Poland Portugal Romania Slovenia Slovakia Finland Sweden United Kingdom Total Total own resources as percentage of GNI: ( ) / ( ) = 0.99 %; own resources ceiling as percentage of GNI: 1.23 % /14 IS/sh 33

34 2. Net traditional own resources (customs duties and sugar levies) amount to EUR million. 3. The Union VAT base amounts to EUR million for 2015 (at the rate of 1 %), taking into account the general capping of Member States' GNI base at 50 %, which has actually had to be applied in the case of the VAT bases of five Member States (Croatia, Cyprus, Luxembourg, Malta and Slovenia). The uniform rate of VAT own resources is 0.30%. 4. The uniform rate of "additional base" own resources resulting from the Council's position on the DB for 2015 is %. 5. Revenue other than own resources (Titles 4 to 9) amounts to EUR million. 6. In Title 4 (Miscellaneous Community taxes, levies and dues), Articles 4 0 0, and have been adjusted on the basis of the decisions taken regarding appropriations and staff. 7. Total own resources in % of GNI : ( ) / ( ) = 0.99%; ceiling of the own resources in % of GNI : 1.23 % /14 IS/sh 34

35 IV. ESTIMATED EXPDITURE A. ADMINISTRATIVE EXPDITURE FOR EACH INSTITUTION 1 EUROPEAN PARLIAMT - Section I Budget 2014 Budget 2014 (Adjusted / Member pensions) DB 2015 Difference (amount) Difference (%) / ,24% The Council did not modify the European Parliament's draft budget in its position on the DB for 2015 (Section I). EUROPEAN COUNCIL AND COUNCIL - Section II Budget 2014 Budget 2014 (Adjusted / Member pensions) DB 2015 Difference (amount) Difference (%) / ,52% The Council retained an overall amount of EUR for the European Council and Council's budget, representing an increase by % compared to the 2014 budget. On the one hand, targeted reductions were made by applying a specific decrease to the appropriations related to advance payments on the Europa building (-EUR ) and the contingency reserve (-EUR ). 1 See also ADD 2, ADD 3 and ADD 7 to this explanatory memorandum /14 IS/sh 35

36 On the other hand, the Council partly re-established the reduction by the Commission of travel expenses of delegations (+EUR ) and interpreting costs (+EUR ). Taking into account the current vacancy rate, the standard flat rate abatement on salaries was maintained at 6 % as proposed in the DB for COMMISSION Section III ADMINISTRATIVE APPROPRIATIONS The Council's position regarding the Commission's administrative budget for 2015 is as follows: /2 Budget 2014 Budget 2014 (Adjusted / Member pensions) DB 2015 Difference (amount) Difference (%) p/a p/a p/a p/a p/a p/a Commission, excluding Offices ,74% Annex 2 - Publications Office ,62% Annex 3 - European Anti-Fraud Office ,59% Annex 4 - European Personnel Selection Office ,70% Annex 5 - Office for Administration and Payment of Individual Entitlements ,35% Annex 6 - Office for Infrastructure and Logistics Brussels ,83% Annex 7 - Office for Infrastructure and Logistics Luxembourg ,24% Section III - Commission ,57% An overall amount of EUR million in commitment and payment appropriations was agreed for the Commission's budget (including OP, OLAF, EPSO, PMO, OIB and OIL), representing a minor increase of % and % respectively when compared to the 2014 budget. Taking into account the current vacancy rate, the standard flat rate abatement on salaries was set at 4.5 % for the Commission's headquarters and at 6.0 % for delegations /14 IS/sh 36

37 PUBLICATIONS OFFICE (OP) Budget 2014 Budget 2014 (Adjusted / Member pensions) DB 2015 Difference (amount) Difference (%) / ,62% An overall amount of EUR was agreed for OP's budget, representing a decrease of % compared to the 2014 budget. Taking into account the current vacancy rate, the standard flat rate abatement on salaries was set at 6.0 %. EUROPEAN ANTI-FRAUD OFFICE (OLAF) Budget 2014 Budget 2014 (Adjusted / Member pensions) DB 2015 Difference (amount) Difference (%) / ,59% An overall amount of EUR was agreed for OLAF's budget, representing an increase of % compared to the 2014 budget. Taking into account the current vacancy rate, the standard flat rate abatement on salaries was set at 6.0 % /14 IS/sh 37