Table of Contents. Introduction... i

Transcription

1

2

3 Table of Contents Introduction... i PART A Overview: Budget... 1 A.1 Establishing the Budget... 3 A.1.1 Budgetary Procedure... 3 A Draft Budget... 4 A Amending Letter No 1/... 4 A From the Second Draft Budget Budget... 5 A.1.2 The Evolution Draft Budget the Voted Budget... 7 A A A Reserves and Special instruments... 8 A.2 Amending Budgets... 9 A.2.1 Summary Table of Amending Budgets... 9 A.2.2 Impact of Amending Budgets between MFF Headings... 9 A.3 Transfers A.3.1 Impact of Transfers A.3.2 The Global Transfer A.3.3 End of Year Transfer for Payment Appropriations A A.4.1 Decision for A of Appropriations A Non-aumatic of Payment Appropriations A.4.2 Implementation of Payment Appropriations Carried Over A.5. Implementation of Revenue Appropriations A.5.1 Implementation of by MFF Heading A.5.2 Implementation of by source A.6 Implementation Overview A.6.1 Implementation of Available Appropriations A.6.2 Implementation of Appropriations of the Year A Implementation Overview Table A Implementation Compared and Final Budget A.7 RAL-Situation A.7.1 Summary of Outstanding A.7.2 RAL by Main s A.7.3 Age Structure of the RAL PART B Implementation of Budget by MFF Heading B. 1 Heading 1a: Competitiveness for Growth and Jobs B.1.1 European Fund for Strategic Investments (MFF ) B.1.2 European Satellite Navigation Systems (EGNOS & GALILEO) (MFF ) B.1.3 International Thermonuclear Experimental Reacr (ITER) (MFF ) B.1.4 European Earth Observation (COPERNICUS) (MFF ) B.1.5 Nuclear Safety and Decommissioning (MFF 1.1.2) B.1.6 Horizon 2020 (MFF ) B.1.7 Euram Research and Training (MFF ) B.1.8 Competitiveness of Enterprises and Small and Medium-sized Enterprises (COSME) (MFF 1.1.4) B.1.9 Education, Training and Sport (Erasmus+) (MFF 1.1.5) B.1.10 Employment and Social Innovation (EaSI) (MFF 1.1.6) B.1.11 Cusms, Fiscalis and Anti-Fraud (MFF 1.1.7)... 38

4 B.1.12 Connecting Europe Facility (CEF) (MFF 1.1.8X) Energy (MFF ) Transport (MFF ) Information and Communication Technology (ICT) (MFF ) Connecting Europe Facility (CEF) B.1.13 Energy Projects Aid Economic Recovery (EERP) (MFF 1.1.9) B.1.14 Decentralised Agencies (MFF 1.1. DAG) B.1.15 Others B.2 Heading 1b: Economic, Social and Terririal Cohesion B.2.1 Regional Convergence (Less Developed Regions) (MFF ) B.2.2 Transition Regions (MFF ) B.2.3 Competitiveness (More Developed Regions) (MFF ) B.2.4 Outermost and Sparsely Populated Regions (MFF ) B.2.5 Cohesion Fund (MFF ) B.2.6 European Terririal Cooperation (MFF 1.2.2) B.2.7 Technical Assistance and Innovative Actions (MFF ) B.2.8 European Aid the Most Deprived (FEAD) (MFF 1.2.4) B.2.9 Youth Employment Initiative (Specific Top-up Allocation) (MFF 1.2.5) B.2.10 Contribution the Cohesion Fund CEF (MFF 1.2.6) B.2.11 Others B.3 Heading 2: Sustainable Growth: Natural Resources B.3.1 European Agricultural Guarantee Fund (EAGF) Market-related Expenditure and Direct (MFF ) B Chapter Interventions in agricultural markets B Chapter Direct Aids B.3.2 European Agricultural Fund for Rural Development (EAFRD) (MFF ) B.3.3 European Maritime and Fisheries Fund (EMFF) (MFF ) B.3.4 Sustainable Fisheries Partnership Agreements (SPFAs) and Compulsory Contributions Regional Fisheries Management Organisations (RFMOs) and Other International Organisations (MFF ) B.3.5 Environment and Climate Action (LIFE) (MFF 2.0.4) B.3.6 Decentralised Agencies (MFF 2.0.DAG) B.3.7 Others B.4 Heading 3: Security and Citizenship B.4.1 Asylum, Migration and Integration Fund (AMF) (MFF 3.0.1) B.4.2 Internal Security Fund (MFF 3.0.2) B.4.3 IT Systems (MFF 3.0.3) B.4.4 Justice (MFF 3.0.4) B.4.5 Rights, Equality and Citizenship (MFF 3.0.5) B.4.6 Union Civil Protection Mechanism (MFF 3.0.6) B.4.7 Europe for Citizens (MFF 3.0.7) B.4.8 Food and Feed (MFF 3.0.8) B.4.9 Health (MFF 3.0.9) B.4.10 Consumer (MFF ) B.4.11 Creative Europe (MFF ) B.4.12 Decentralised Agencies (MFF 3.0.DGA) B.4.13 Others B.5 Heading 4: Global Europe B.5.1 Instrument for Pre-Accession Assistance (IPA II) (MFF 4.0.1) B.5.2 European Neighbourhood Instrument (ENI) (MFF 4.0.2) B.5.3 Development Cooperation Instrument (DCI) (MFF 4.0.3) B.5.4 Partnership Instrument (PI) (MFF 4.0.4) B.5.5 European Instrument for Democracy and Human Rights (EIDHR) (MFF 4.0.5) B.5.6 Instrument Contributing Stability and Peace (IcSP) (MFF 4.0.6) B.5.7 Humanitarian Aid (MFF 4.0.7)... 72

5 B.5.8 Common Foreign and Security Policy (CFSP) (MFF 4.0.8) B.5.9 Instrument for Nuclear Safety Cooperation (INSC) (MFF 4.0.9) B.5.10 Macro-financial Assistance (MFA) (MFF ) B.5.11 Guarantee Fund for External Actions (MFF ) B.5.12 Union Civil Protection Mechanism (MFF ) B.5.13 EU Aid Volunteers Initiative (EUAV) (MFF ) B.5.14 Decentralised agencies (MFF 4.0.DAG) B.5.15 Others B.6 Administration B.6.1 Commission Administration B.6.2 Implementation Tables () B Commission administrative expenditure (MFF 5.2.3X) B Pensions (includes MFF lines) B European Schools (MFF 5.1.2) B.6.3 RAL Overview of Heading B.7 Special Instruments B.7.1 Emergency Aid Reserve (EAR) (MFF 9.0.1) B.7.2 European Globalisation Adjustment Fund (EGF) (MFF 9.0.2) B.7.3 European Union Solidarity Fund (EUSF) Member States (MFF ) B.7.4 European Union Solidarity Fund (EUSF) Countries Negotiating for Accession (MFF ) 95 PART C Own Resources C.1 Budget Implementation Table C.2 Legal Basis C.3 The Budgetary Forecast of Own Resources C.4 The Process of Adopting the Budget Budgetary adjustments C.5. Budget Forecasts Tables versus C.6 Breakdown of the Amount of Own Resources by Member State C.7 Implementation of Own Resources ANNEXES Annex I Summary Information on Transfers of Appropriations Annex II Transfers made by European offices Annex III Community Entitlements Annex IV Types of appropriation

6

7 Introduction The current Financial Regulation 1 applies since 1 January The legal basis for this Report on Budgetary and Financial Management is Article 142, which stipulates that each institution and body shall prepare a report on ary and financial management for the financial year. The present report analyses the managed by the European Commission in. Figures presented in this report are preliminary data serving as a basis for the provisional accounts at end of March. The report is divided in 3 parts, as follows: PART A - Overview: Budget This part analyses the year at ary level including: a summary of the various stages of the ary procedure, explaining how the for the financial year were arrived at during the process of ary negotiation and the establishment of the ; a description of the main adjustments this during the financial year and reasons for these adjustments, leading the final of the year; an overview of the implementation of expenditure in ; an assessment of the evolution of the outstanding (RAL reste à liquider). PART B - Implementation of Budget by MFF Heading It provides an analysis of the implementation of the year by heading of the Multiannual Financial Framework (MFF) and by programme. The evolution of the RAL in is also integrated. tables include: The last programme allocation as per the Technical update of financial programming following the adoption of the incorporates all the changes since the adoption of the Draft on 27 May, including the allocation revised with ary adjustments made during that year and the allocation updated as per the adopted ; The implementation of and in the two first years of the current programming period; The volume of outstanding of the current programme, compared the tal RAL of the detailed MFF heading. However, this percentage does not necessarily indicate the breakdown of the current and the previous programmes, as a) some headings comprise major lines not belonging a programme and b) the share of third party in the tal RAL is significant in some cases. 1 Regulation (EU, Euram) No 966/2012 of the European Parliament and of the Council of 25 Ocber 2012 on the Financial Regulation applicable the general of the Union. OJ L 298, i

8 PART C - Own resources This is an analysis of the year including the comparison of the outturn the Final, adjustments made during and comparison of forecasts actual implementation. Annexes I: Summary information on Transfers of (legal reference: Art of the Financial Regulation); II: Transfers made by European offices; III: Community entitlements (Art. 79 of the Financial Regulations gether with Art of the Rules of Application); IV: Types of appropriation. Highlights of Budget year Essentially, all commitment and payment were consumed in. At end- the implementation of commitment (after carryovers) amounted EUR 170 billion (99.9 % of available ). The implementation of payment reached almost EUR 139 billion (after carryovers), corresponding 99.9% of available. In spite of the record high level of commitment available in within Heading 1b (Economic, social and terririal cohesion), due almost EUR 20 billion of Structural funds carried over or reprogrammed, all of them were implemented, as all operational programmes were adopted before the end of the year. In the course of, two Amending Budgets (No 5/ and 7/) increased commitment and payment of Headings 3 (Security and Citizenship) and 4 (Global Europe) address the refugee crisis. Whereas increased by EUR 406 million compared the initial, payment were redeployed within and between headings, leaving the tal amount unchanged. After the artificial decrease in outstanding ('RAL') at the end of (due the reprogramming in of most of the EUR 32 billion commitment carried over because of the delays in the adoption of operational programmes), the level of RAL increased by EUR 28 billion in reaching EUR 217 billion, the level of 2012, and approaching that of 2013 (EUR 222 billion). ii

9 PART A Overview: Budget

10

11 A.1 Establishing the Budget A.1.1 Budgetary Procedure The broad context of negotiations for can be summarised as the unsolved issue of payment needs, related the excess backlog of payment claims in Cohesion at the end of The Commission had proposed on 28 May the Draft Amending 3/ (DAB 3/) address this increasing snowball effect of unpaid claims and a growing RAL with the full use of the margin of the Multiannual Financial Framework (MFF) completed with a contribution the Contingency Margin. This reinforcement of payment, in absolute terms some EUR 4.8 billion (available margin EUR 711 million and Contingency margin for EUR 4 billion), was the outset Parliament's precondition for negotiations. Parliament's main priority was tackle the level of unpaid bills. It considered the exceptional fines of some EUR 5 billion in windfall enabling the reinforcement pain, whereas for the Council it was not evident that this extra should aumatically be used for the rather than for the surplus. The proposed reinforcement launched inevitably the debate on how treat Special instrument as regards ceilings. There was consensus that the of Special instruments were above the ceilings, but some Council delegations remained inside the ceiling, thus contesting the interpretation of the Parliament. Due the complexity of a package of 6 Amending s (increase of payment via Contingency margin and complicated issues on both own resources and treatment of Special instruments), the Council could fix its position on outstanding Draft amending s only at the very end of the conciliation procedure. Parliament rejected the offer and the Commission had present a new Draft early December. The negotiations on the second Draft started then leading on 17 December the adoption of Budget linked an agreement on the package of Amending s of the current year and 7 joint statements whereas the opposing interpretations of Special instrument payment as regards the ceiling were presented in separate statements. The table below shows in percentage terms the main features of the Budgetary procedure : how slightly the global amounts finally changed the initial Draft once the conditions for negotiations were fulfilled. The increase of payment of Special Instruments corresponds the commitment adopted in Amending s No 4 and 6/. 3

12 1A. Competitiveness for growth and jobs 1B. Economic, social and terririal cohesion 2. Sustainable growth: natural resources 3. Security and citizenship Draft Council reading PE reading 4 Second Draft Council reading PE reading Voted CA PA CA PA CA PA CA PA CA PA CA PA CA PA Global Europe Administration Special Instruments GRAND TOTAL The main features of different phases of the ary procedure are presented below. A Draft Budget The framework of the Draft was provided by the agreement on MFF and the new legal bases for programmes. Adopted on 24 June, it set the priorities of delivering a reinforced contribution growth and jobs and ensuring adequate resources meet both past and present and continued restrain administrative expenditure, including a further 1% reduction in staff. As regards, the Draft talling EUR billion represented an increase of 2.1% the Budget, mainly targeted on programmes and instruments contributing the objectives of growth and jobs, in particular in Heading 1a (+4.2%). Payment were set at the MFF ceiling of EUR billion, an increase of 4.7% the Budget, but still some EUR 2 billion lower than the 2013 Final. The Commission considered the proposed reinforcement as a pre-condition for any stabilisation of the backlog of unpaid payment claims at year-end. Non-differentiated expenditure represented 37% of (mainly Common Agricultural Policy and administrative expenditure), 40% of the payment were channelled the completion of the old programmes, with the share of the new programmes in increasing 22%. A Amending Letter No 1/ The Amending letter No 1 (AL 1) the Draft for, presented on 15 Ocber, covered mainly: An update of the estimated needs and for agricultural expenditure; An update of the situation for Sustainable Fisheries Partnership Agreements, take account of the most recent information available, mobilising EUR 0.7 million the reserve for provisional ; A redeployment of EUR 448 million of payment Headings 1a, 2, 3 and 4 for agricultural expenditure reduced thanks new s. The net ary impact was a reduction of EUR 448 million in commitment and the overall level of remained unchanged.

13 A From the Second Draft Budget Budget The conciliation (21 days' period ending on 17 November) failed, when Parliament rejected the Council's position of the outstanding Draft amending, presented on the very last morning. The Commission proposed a Second Draft on 27 November. It was examined by the Budget Committee of the Council on 28 November and 1 December, then by the Permanent Representatives Committee on 1 December, who gave a mandate the Presidency start negotiations with the European Parliament on the and Draft amending s No 3-8/. At a trilogue on 8 December, the European Parliament and the Council reached an agreement on a draft package and on 9 December, the Permanent Representatives Committee confirmed this package. The Council's position was fixed at 10 December and the Parliament adopted the Budget on 17 December. Commission's starting point for the negotiations was that, even if the details of had not been discussed during the conciliation, many elements appeared be acceptable both arms of Budget Authority in light of their reading of the Draft : Positions were rather close on the amounts of commitment as regards Heading 1b (including the mobilisation of the flexibility instrument for additional Structural funds for Cyprus), Heading 2 (including AL 1/ and the issue of the crisis reserve) and Heading 3 as well as Pilot Projects and Preparary Actions (EP 'package' of 59 PP/PA); For decentralised agencies, Parliament's position was request some limited increases in posts or for the financial supervisory agencies under Heading 1a (E. EIOPA, ESMA) and agencies under Heading 3; Heading 1a: The Council was open some targeted increases in on support SMEs (COSME, Horizon 2020) for a tal amount of some EUR 20 million, but Parliament was requesting considerably more (+EUR 190 million); Heading 4: Parliament's target was some EUR 390 million more than Council's position, consisting of European Neighbourhood Instrument (ENI) including Palestine, Development Cooperation (DCI) and Humanitarian Aid. In Heading 5: Parliament adopted an amendment concerning the transfer of common administrative costs of EU delegations the European External Action Service (EEAS) section of the following the request of EEAS. The transfer of the European Union special representatives, requested by EEAS, was not included in the Commission proposal. The Second Draft consequently set the at EUR million (+EUR 76 million), with a small increase in Heading 1a, but a decrease in Heading 4. In the adopted Budget, the overall level of commitment in the was set at EUR million. This left a margin below the MFF ceilings for of EUR million and the Flexibility Instrument for was mobilised for an amount of EUR 83 million. In Heading 1a the commitment of Horizon 2020 were increased with EUR 45 million, Erasmus with EUR 16 million and COSME with EUR 2 million, decentralised agencies with EUR 0.2 million and in Heading 4 ENI with EUR 22 million, Humanitarian aid with EUR 10 million and Common Foreign and Security Policy with EUR 20 million whereas administrative expenditure was reduced by EUR 20 million. The last two amendments resulted of the rejection of the proposed transfer EEAS. 5

14 The Second Draft was set at EUR million proposing an overall reduction of payment of EUR 800 million the Draft as amended by Amending Letter 1/ with the aim of protecting lines in Heading 1a, Heading 4 and the Convergence objective of the Cohesion policy. The decrease consisted mainly of EUR 535 million in Heading 1b, EUR 279 million in Heading 2 and EUR 51 million in Heading 4, whereas Heading 5 was increased with EUR 56 million. As the initial Draft was set at the MFF ceiling, the decrease created a corresponding margin. The overall level of payment in the Budget was set at EUR million. This included an amount of EUR 127 million related the mobilisation of the EU Solidarity Fund linked DABs No 5/ and 7/, an amount of EUR 440 million following the shift of payment for the Youth Employment Initiative the Budget the Budget and the mobilisation of the Flexibility Instrument for additional assistance Cyprus in and, estimated as EUR 11 million. The biggest adjustments made during the negotiation process are summarised in the table below: MFF heading Change Common Strategic Framework (CSF) Research & Innovation -21 Competitiveness (More developed regions) -182 Cohesion fund European terririal cooperation Youth employment initiative +440 European Agricultural Fund for Rural Development (EAFRD) -218 European Solidarity Fund

15 A.1.2 The Evolution Draft Budget the Voted Budget A MFF heading 1a Description Competitiveness for growth and jobs Final ( carryover) MFF ceiling Draft (incl. AL No 1/) Council's position EP's position Second Draft Council's position EP's position Voted (1) (2) (3) (4) (5) (6) (7) (8) (9) Difference (9)/(1) = (10) % Margin Economic, social 1b and terririal Cohesion Margin (after the use of flexibility instrument) Sustainable 2 growth: Natural resources % % Margin Security and Citizenship % Margin Global Europe % Margin Administration % Margin CA % Margin Special instruments % GRAND TOTAL % The voted commitment represented 1.04 % of GNI. 7

16 A MFF heading 1a 1b 2 3 Description Competitiveness for growth and jobs Economic, social and terririal Cohesion Sustainable growth: Natural resources Security and Citizenship Final Budget Draft Council's position EP's position Second Draft Council's position EP's position Voted (1) (2) (3) (4) (5) (6) (7) (8) Difference (8)/(1) = (9) % % % % 4 Global Europe % 5 Administration % TOTAL PA % Margin (after the use of flexibility instrument) Special instruments % GRAND TOTAL % The voted payment represent 1.01% of GNI. The difference between commitment and payment was EUR 4.3 billion (: EUR 7.1 billion). A Reserves and Special instruments The provisional for financial interventions amounting EUR 88 million in and in concerned solely international fisheries agreements (article Establishing a governance framework for fishing activities carried out by Union fishing vessels in third country waters). The voted included the following Special instruments: European Globalisation Adjustment Fund: EUR 162 million for in reserve (article ) and EUR 25 million for (article EGF support workers and self-employed persons whose activity has ceased as a result of globalisation); Emergency Aid Reserve: EUR 303 million in and EUR 150 million in payment ; European Union Solidarity Fund: EUR 50 million in and 117 million in in article To assist Member States in the event of a major natural disaster with serious repercussions on living conditions, the natural environment or the economy. European Union Solidarity Fund: EUR 60 million in in article To assist countries negotiating for accession in the event of a major natural disaster with serious repercussions on living conditions, the natural environment or the economy. 8

17 A.2 Amending Budgets A.2.1 Summary Table of Amending Budgets AB Date of adoption Main subject 1 28/04 Reprogramming of unused 2 07/07 European Fund for Strategic Investment (EFSI) 3 07/07 Surplus 4 07/07 EU Solidarity Fund (Romania, Bulgaria, Italy) 5 07/07 Migration and refugee flows, redeployment of the Galileo programme 6 14/10 Revision of TOR, VAT and GNI contributions 7 14/10 Budgetary measures under the European Agenda on Migration 8 25/11 Own resources, EDPS Official Journal OJ L /07/ OJ L /10/ OJ L /10/ OJ L /10/ OJ L /10/ OJ L /12/ OJ L /12/ OJ L 18 27/01/ Impact on CA Impact on PA TOTAL reserves Reserves See also the description of Amending Budgets in item C.4. A.2.2 Impact of Amending Budgets between MFF Headings 9 MFF heading CA PA 1a Competitiveness b Cohesion Natural resources Security and Citizenship Global Europe Administration 0 0 SUBTOTAL Special instruments TOTAL reserves Reserves This breakdown was a result of reinforcements due refugee and humanitarian crises, reprogramming of after the first year of the new programming period and the mobilisation of the EU Solidarity Fund. Due the late adoption of the rules or programmes under shared management algether 300 programmes (47%) of the programming period could not be launched in or benefit the procedure for carry-over. Amending 1/ presented gether with the Commission's parallel proposal for a revision of the multiannual financial framework (MFF) for the years 2020, in accordance with Article 19 of Council Regulation No 1311/2013 (MFF Regulation), concerned Cohesion for EUR million, Rural development for

18 EUR million, Fisheries for EUR 741 million, Security for EUR 210 million and Preaccession assistance for EUR 2 million. The major redeployment of concerned EUR million the new European Fund for Strategic Investments mainly ITER (EUR 500 million) and CEF transport (EUR 700 million). In, EUR 70 million Galileo and EUR 33 million EU Solidarity Fund and EUR 19 million the reserve for Fisheries agreements were allocated Headings 3 and 4. A.3 Transfers A.3.1 Impact of Transfers In, 46 (: 51) were approved by the Budget Authority. As in, all of them were for decision. The European Globalisation Adjustment Fund was the subject of 17 (: 21). In the presentation used in this report, affect the tal by increasing them with amounts released the provisional (Chapter Reserves for financial interventions) either by Budget Authority transfer or Commission. Transfers between lines modify the tal of those lines. The impact of all is summarised in the tables below: MFF Heading Transfers the provisional (1) Released (2) Unused Transfers Special instruments (3) Released (4) Unused Transfers between operational lines (5) To (6) From Difference Impact (7=5-6) (8=1+3+7) (7) (8) 1a. Competitiveness b. Cohesion Natural resources Security and Citizenship Global Europe Administration SUBTOTAL Special instruments GRAND TOTAL

19 MFF Heading Transfers the provisional (1) Released (2) Unused Transfers Special instruments (3) Released (4) Unused Transfers between operational lines (5) To (6) From Difference (7=5-6) Impact (8=1+3+7) (7) (8) 1a. Competitiveness b. Cohesion Natural resources Security and Citizenship Global Europe Administration SUBTOTAL Special instruments GRAND TOTAL After following amounts remained unused in reserves: Budget line MFF heading 2 Description CA PA Establishing a governance framework for fishing activities carried out by Union fishing vessels in third country waters Emergency aid reserve Reserve for the European Globalisation Adjustment Fund TOTAL A.3.2 The Global Transfer The Global Transfer, adopted on 13/10, related payment amounting EUR 424 million, corresponding some 0.3% of the tal available in the. This is comparable with the Global Transfer of 2012, the last year in which the Commission's proposal was approved in full by the Budget Authority. In tal, 73 lines were concerned (26 for reinforcement and 47 for reductions), compared 57 lines (26 for reinforcement and 31 for reductions) included in Commission's proposal presented at the end of. The proposed reinforcements and reductions by heading and main programme are as follows: MFF heading 11 Reinforcements Reductions Impact between headings 1a. Competitiveness Natural resources Security and Citizenship Global Europe Administration Special instruments TOTAL

20 A.3.3 End of Year Transfer for Payment Appropriations The so-called 'End of Year Transfer' is intended ensure that the maximum of outstanding invoices related Funds in shared management can be honoured by making full use of any available payment. The rules governing this facility are set out in Article and of the Financial Regulation. The 'End of Year Transfer' for concerned payment talling EUR 416 million (: EUR 580 million), drawn 63 lines (: 28). It can be broken down by heading as follows: MFF heading Reductions 1a. Competitiveness -52 1b. Cohesion Natural resources Security and Citizenship Global Europe -20 EUR 288 million was transferred item Rural development programmes and EUR 127 million article Completion of European Regional Development Fund (ERDF) Regional competitiveness and employment. A complete summary on Budget Authority is given in Annex I. A.4 A.4.1 Decision for The carryover decision of the Commission, taken on 11 February 2, reflected the situation of the start of a new programming period in, as regards volume and nature. All differentiated commitment, with the exception of some items in Global Europe due late adoption of the legal base and the specific case of Emergency aid reserve (Type C2), were carried over on the ground of preparary phases completed by end (Type C3). So a tal of EUR million was be committed before end-march, consisting mainly of programmes under shared management of the European Structural and Investment Fund (ESIF) and of the Fund of European Aid the most Deprived (FEAD) delayed because of later than expected adoption of the legal bases. For non-differentiated, a carryover of EUR 868 million corresponding noncommitted of EAGF (European Agriculture Guarantee Fund) under shared management was made on the basis of Article of the Financial Regulation which limits the carryover of unused EAGF 2% of the initial. There was also one case of Structural funds made available again amounting EUR 0.6 million (Type C7) in favour of the European Fisheries Fund. The carryover of differentiated payment talled EUR 44.5 million, of which EUR 35.5 million related decisions mobilise European Globalisation Adjustment Fund (EAGF) taken late in year. The following table summarises the carryover decisions by Heading of the multiannual financial framework and gives the breakdown of by Type. 2 () 959 final. 12

21 MFF heading Description C2 C3 C7 CA PA 1a Competitiveness for growth and jobs b Economic, social and terririal Cohesion Sustainable growth: Natural resources Security and Citizenship Global Europe Administration 0 0 SUBTOTAL Special instruments GRAND TOTAL For the first time, the unmobilised Emergency aid reserve (EUR million) was carried over pursuant Financial Regulation 13 2c A of Appropriations The table below summarises the commitment carried over with the type of. Budget item Description Type European Social Fund (ESF) - Less developed regions - Investment for growth and jobs goal European Social Fund (ESF) - Transition regions - Investment for growth and jobs goal European Social Fund (ESF) - More developed regions - Investment for growth and jobs goal Amount carried over Balance C C C Youth Employment Initiative (YEI) C Promoting social cohesion and alleviating the worst forms of poverty in the Union European Regional Development Fund (ERDF) - Less developed regions - Investment for growth and jobs goal European Regional Development Fund (ERDF) - Transition regions - Investment for growth and jobs goal European Regional Development Fund (ERDF) - More developed regions - Investment for growth and jobs goal European Regional Development Fund (ERDF) - European terririal cooperation C C C C C Cohesion Fund - Investment for growth and jobs goal C HEADING 1b TOTAL Reimbursement of direct aids in relation financial discipline (EAGF) Promoting sustainable rural development, more terririally and environmentally balanced, climate-friendly and innovative Union agricultural secr Completion of European Fisheries Fund (EFF) - Convergence objective ( ) 13 C2 (Nondifferentiated) C C

22 Promoting sustainable and competitive fisheries and aquaculture, balanced and inclusive terririal development of fisheries areas and fostering the implementation of the CFP C HEADING 2 TOTAL Fund for emergency measures related animal and plant health C Support of borders management and a common visa policy facilitate legitimate travel Prevention and fight against cross-border organised crime and better management of security related risks and crisis Strengthening and developing the Common European Asylum System and enhancing the solidarity and responsibility sharing between the Member States Supporting legal migration the Union and promoting the effective integration of third-country nationals and enhancing fair and effective return strategies C C C C HEADING 3 TOTAL Support for economic, social and terririal development C Support for economic, social and terririal development C Other crisis management measures and operations C Support non-proliferation and disarmament C External trade relations, including access the markets of third countries Preparary action - Enhanced health care for victims of sexual violence in the Democratic Republic of Congo (DRC) Pilot project - Strategic investment in sustainable peace and democratisation in the Horn of Africa Preparary action - Building resilience for better health of nomadic communities in post crises in the Sahel region Preparary Action - Building and strengthening local partnerships develop social economy and establish social enterprises in Eastern Africa C C C C C Support for economic, social and terririal development C HEADING 4 TOTAL SUBTOTAL European Globalisation Adjustment Fund (EGF) C Completion of European Globalisation Adjustment Fund (EGF) ( ) C European Union Solidarity Fund - Member States C European Union Solidarity Fund - Countries negotiating for accession C Emergency aid reserve C SPECIAL INSTRUMENTS TOTAL GRAND TOTAL All C3 were implemented before end March, except the amount of EUR 0.1 million in article planned for an EU contribution the United Nations Commission on International Trade Law (UNCITRAL) Transparency Registry. The anticipated agreement could not be finalised and the were cancelled. 14

23 A Non-aumatic of Payment Appropriations The table below summarises the carryover of payment by decision, by line and shows the amount which remained unimplemented at the year-end. Budget item Description Preventing and combating fraud, corruption and any other illegal activities against the Union's financial interest Amount carried over Balance Completion of Pericles Completion of previous Anti-fraud information system (AFIS) HEADING 1a TOTAL Reimbursement of direct aids in relation financial discipline (EAGF) Operational technical assistance HEADING 2 TOTAL Information outlets HEADING 3 TOTAL Completion of actions 'Crisis response and preparedness' ( ) Information outreach on the European Union external relations Delivery of rapid, effective and needs-based humanitarian aid and food assistance Union Aid Volunteers - Strengthening the Union's capacity respond humanitarian crises HEADING 4 TOTAL SUBTOTAL European Globalisation Adjustment Fund (EGF) Completion of European Globalisation Adjustment Fund (EGF) ( ) SPECIAL INSTRUMENTS TOTAL GRAND TOTAL The unused payment consist mainly of the unimplemented non-differentiated of EAGF. A.4.2 Implementation of Payment Appropriations Carried Over The tal implementation of payment is presented in the table below: MFF Heading Description PA carryover by decision Implemented PA aumatic carryover 15 Implemented PA Implemented % 1a Competitiveness % 1b Cohesion % 2 3 Natural resources Security and Citizenship % % 4 Global Europe % 5 Administration % 9 SUBTOTAL % Special instruments % GRAND TOTAL % The profile of payment carried over aumatically was very similar previous years (: aumatic carryover EUR 539 million and implementation EUR 483 million).

24 A.5. Implementation of Revenue Appropriations The implementation of as at end by MFF heading and by source is presented in tables below. A.5.1 Implementation of Revenue by MFF Heading MFF heading available in Implementation Implementation rate 1a. Competitiveness % 1b. Cohesion % 2. Natural resources % 3. Security and Citizenship % 4. Global Europe % 5. Administration % 9. Special instruments % TOTAL % MFF heading available in Implementation Implementation rate 1a. Competitiveness % 1b. Cohesion % 2. Natural resources % 3. Security and Citizenship % 4. Global Europe % 5. Administration % 9. Special instruments % TOTAL % 16

25 A.5.2 Implementation of Revenue by Source available in 17 Implementation Implementation rate Recoveries in % EAGF clearance, irregularities, milk levy % Other recoveries % Recoveries carried over % EAGF clearance, irregularities, milk levy % Other recoveries % EFTA % Candidate countries contribution % JRC competitive income % Other earmarked s (Third Party) % Coal and Steel income % TOTAL % available in Implementation Implementation rate Recoveries in % EAGF clearance, irregularities, milk levy % Other recoveries % Recoveries carried over % EAGF clearance, irregularities, milk levy % Other recoveries % EFTA % Candidate countries contribution % JRC competitive income % Other earmarked s (Third Party) % Coal and Steel income % TOTAL % Above 75% of available concern Headings 1a and 2. The Heading 1a s mainly derive recoveries, Joint Research Centre (JRC) competitive income, third party participation in research programmes, and the EFTA contribution Community actions and programmes. The Heading 2 s include agricultural conformity clearance of accounts corrections, irregularities, and the milk levy. The implementation of amounted EUR million for commitment (53%) and EUR million for payment (49%). This compares the implementation in, which was EUR million for commitment (53%) and EUR million for payment (51%).

26 The new EAGF declared by Member States. They originate mainly clearance of accounts corrections, irregularities and milk levy, and are often used wards the end of the year of recovery or at the beginning of the next year. In accordance with the applicable rules, amounts collected in one year which are not used at the end of that year can be carried over the next year only, consequently, they are fully consumed in that year. The implementation of EFTA follows a different pattern as they represent a contribution of Norway, Iceland and Lichtenstein certain lines of the EU with a proportionality facr estimated 2.97% (Norway 2.86%, Iceland 0.08% and Lichtenstein 0.03%) under the Agreement establishing the European economic area. The implementation of both commitment and payment of those lines is consequently high, as they follow the rules for carryover and for cancellation of ary. Within a given year both commitment and payment EFTA are usually fully implemented and this proved be the case also in. Over 90% of EFTA (both and ) are concentrated in Heading 1a. The other types of mainly concern third party or third country participation in Community programmes. These are generally received and committed within the same year or the following year. However, the corresponding are made over a number of years, depending on the life cycle of the programmes concerned. Unused are therefore carried over subsequent years any limitation, but following the duration of the programme whose actions are being financed. This explains the annual level of implementation for these types of. The use of may also be subject specific conditions. With the exception of recoveries carried over, they are not cancelled. Consequently, full implementation is not a constraint as for ary. A complete analysis of the implementation of in will be presented in the Working document part V of the Draft General Budget of the European Commission for the financial year 2017 implementation in the previous year. A.6 Implementation Overview A.6.1 Implementation of Available Appropriations The implementation rates of all available of the Commission were 98% for and 97% for, as the table below shows. Amending s Carry-over CA % % PA % % of RAL on De Evolution of the RAL RAL % 18

27 The breakdown of available per Heading was: Heading Amending s 1a % 100% 1b % 100% % 99% % 100% % 99% % 100% SUBTOTAL % 99% % 46% GRAND TOTAL Heading % 99% Amending s 1a % 99% 1b % 100% % 99% % 99% % 99% % 95% SUBTOTAL % 99% % 100% GRAND TOTAL % 99% 19

28 A.6.2 Implementation of Appropriations of the Year A Implementation Overview Table The table below gives the implementation of available of the year. MFF Heading Implementation Implementation rates Balance Balance after carryover CA PA CA PA CA PA CA PA 1a. Competitiveness % 99% b. Cohesion % 99% Natural Resources % 98% Security and Citizenship % 99% Global Europe % 99% Administration % 94% SUBTOTAL Commission % 99% Special instruments % 99% GRAND TOTAL % 99% and unmobilised reserves are excluded this table. Unspent carried over are treated in item A.4.2, unmobilised reserves in item A.3.1. A Implementation Compared and Final Budget The table below presents the implementation by detailed MFF heading on the compared the Final ( after adjustments during the year), showing the link between implementation rates and ary adjustments. The major increases of were related the reprogramming of Funds under shared management. Decreases concerned Iter, CEF Transport as well as EIDHR, CFSP and Macro-financial assistance. The magnitude of redeployments of payment was below that of previous years. The lower implementation rates in administration are the consequence of non-differentiated which can be aumatically carried over. 20

29 MFF heading CA PA 21 On final On initial On final On initial European Fund for Strategic Investments (EFSI) 100% 100% European Satellite Navigation Systems (EGNOS & GALILEO) International Thermonuclear Experimental Reacr (ITER) European Earth Observation (COPERNICUS) 100% 100% 100% 87% 100% 44% 99% 76% 100% 100% 100% 99% Nuclear Safety and Decommissioning 100% 100% 100% 95% Horizon % 99% 99% 99% Euram Research and Training 100% 100% 95% 92% Competitiveness of enterprises and small and mediumsized enterprises (COSME) 100% 103% 99% 105% Education, Training and Sport (Erasmus+) 100% 100% 100% 113% Employment and Social Innovation (EaSI) 99% 102% 93% 93% Cusms, Fiscalis and Anti-Fraud 100% 100% 98% 111% CEF Energy 100% 81% 98% 97% CEF Transport 100% 57% 99% 94% CEF - Information and Communication Technology (ICT) 100% 100% 99% 31% Energy projects aid economic recovery (EERP) 100% 95% 1.1.DAG Decentralised agencies 100% 96% 100% 94% HEADING 1a TOTAL 100% 100% 99% 98% Regional convergence (Less developed regions) 100% 123% 100% 99% Transition regions 100% 134% 100% 99% Competitiveness (More developed regions) 100% 122% 100% 112% Outermost and sparsely populated regions 100% 131% 100% 68% Cohesion Fund 100% 122% 100% 96% European terririal cooperation 99% 141% 100% 112% Technical assistance and innovative actions 90% 90% 89% 81% European Aid the Most Deprived (FEAD) 100% 100% 99% 13% Youth employment initiative (specific p-up allocation) 100% 107% 100% 101% Contribution the Cohesion Fund CEF 100% 100% 100% 100% HEADING 1b TOTAL 100% 123% 100% 100% European Agricultural Guarantee Fund (EAGF) - Market related expenditure and direct European Agricultural Fund for Rural Development (EAFRD) 99% 99% 99% 99% 100% 131% 100% 100% European Maritime and Fisheries Fund (EMFF) 100% 183% 100% 97% Sustainable Fisheries Partnership Agreements (SPFAs) and compulsory contributions Regional Fisheries Management Organisations (RFMOs) and other international organisations 99% 213% 100% 202% Environment and Climate action (Life) 100% 100% 98% 93% 2.0.DAG Decentralised agencies 100% 100% 100% 100% HEADING 2 TOTAL 99% 108% 99% 99%

30 3.0.1 Asylum, Migration and Integration Fund (AMF) 100% 149% 100% 120% Internal Security Fund (ISF) 100% 140% 99% 129% IT Systems 100% 100% 100% 74% Justice 100% 98% 97% 69% Rights and Citizenship 99% 99% 98% 80% Civil protection 99% 99% 97% 87% Europe for Citizens 100% 100% 98% 100% Food and Feed 100% 95% 99% 93% Health 100% 100% 99% 78% Consumer 99% 99% 94% 88% Creative Europe 100% 100% 99% 97% 3.0.DAG Decentralised agencies 100% 104% 100% 103% HEADING 3 TOTAL 100% 117% 99% 105% Instrument for Pre-Accession Assistance (IPA II) 100% 100% 99% 99% European Neighbourhood Instrument (ENI) 100% 117% 100% 101% Development Cooperation Instrument (DCI) 100% 100% 100% 103% Partnership Instrument (PI) 100% 100% 97% 67% European Instrument for Democracy and Human Rights (EIDHR) 100% 95% 98% 94% Instrument contributing Stability and Peace (IcSP) 100% 103% 99% 108% Humanitarian aid 100% 118% 100% 131% Common Foreign and Security Policy (CFSP) 83% 70% 100% 97% Instrument for Nuclear Safety Cooperation (INSC) 100% 100% 99% 89% Macro-financial Assistance (MFA) 13% 0.1% 100% 31% Guarantee Fund for External Actions 100% 100% 100% 100% Union Civil Protection Mechanism 93% 100% 100% 111% EU Aid Volunteers initiative (EUAV) 100% 50% 100% 13% 4.0.DAG Decentralised agencies 100% 100% 100% 100% HEADING 4 TOTAL 99% 104% 99% 103% Pensions 100% 100% 100% 100% European schools 100% 102% 100% 102% 5.23x Commission administrative expenditure 100% 100% 92% 92% HEADING 5 TOTAL 100% 100% 95% 95% 9 Special instruments 100% 252% 100% 107% GRAND TOTAL 100% 112% 99% 99% 22