DRAFT EU BUDGET 2017

Kristalina Georgieva

Vice-President for Budget

and Human Resources

BUDG Committee,

30 June 2016

Outline 1. Technical adjustment

2. Draft budget (DB) 2017 in the multiannual context…

3. Global overview of the DB 2017

• Commitments

• Payments

4. Priorities of the DB 2017

• Jobs, growth and investment

• Migration, Refugee, and Security crisis

5. Administrative expenditure and DAB 3/2016

6. EU Budget Focused on Results (BFOR)

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• The Commission is "empowered" by MFF Regulation to perform the technical adjustments of the MFF: no legislative procedure required to validate it.

• This year it includes the adjustment of cohesion policy envelopes which leads to a total increase of EUR 4.6 bn in commitments over 2017-2020.

• 3 main beneficiaries: ES, IT and EL. (5 MS will see their envelope reduced but individual losses below EUR 100 million)

• Commission will seek focus on main/new priorities: migration, youth employment and investments through financial instruments and a combination with EFSI.

Technical adjustment

The draft budget (DB) 2017 in the multiannual context

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Overview on Draft Budget 2017

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(2) Margin in heading 1A takes into account use of global margin for commitment (1,3 billion) while margin of

heading 3 takes into account the use of the flex (530 million) and the contingency margin (1,2 billion).

APPROPRIATIONS BY HEADING DB 2017

In billion EUR Δ 2016 (in %)(3)

Margins In million EUR

CA PA CA PA CA PA

1. Smart and inclusive growth: 74,7 56,6 6,9% -14,5% 94

Competitiveness for growth and jobs 21,1 19,3 11,0% 10,9% 81(2)

Economic, social and territorial cohesion 53,6 37,3 5,4% -23,5% 13

2. Sustainable Growth: natural resources

58,9 55,2 1,3% 0,2% 639(1)

Market related expenditure and direct aids 42,9 42,9 1,7% 1,6%

3. Security and Citizenship 4,3 3,8 8,3% 25,1% 0(2)

4. Global Europe 9,4 9,3 2,9% -8,5% 0

5. Administration 9,3 9,3 4,1% 4,2% 82(1)

Other special Instruments 1,0 0,6

Total appropriations 157,7 134,9 4,7% -6,2% 815 9 608 In % of EU-28 GNI 1,05% 0,90%

. (3) Neutralizing the effect of reprogramming in 2016 and 2017. Nominal decrease of -5,7% for heading 2

and increase of +5,4% for heading 3. The total nominal increase of commitments is +1,7%.

(1) Includes the offsetting against the mobilisation of the Contingency Margin.

Overview on DB 2017

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Commitments : +4,7%

(without counting the amounts of 2014

reprogrammed in 2016)

Payments: -6,2%

No abnormal backlog foreseen

EUR billion

120.0

125.0

130.0

135.0

140.0

145.0

150.0

155.0

160.0

B 2016 DB 2017 B 2016 DB 2017

excluding special instr. special instruments

Commitment: € 157,7 billion Margin: EUR 815,4 million 1,05% EU-GNI Payment: € 134,9 billion Margin: EUR 9 604 million 0,90% EU-GNI

Priorities of the Draft Budget 2017

Jobs, growth and investments

An effective European response to the migration, refugee and security crisis

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EU Budget Focused on Results

In the framework of …

Jobs, Growth and Investments (1)

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Overall increase in Heading 1a – 11%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Horizon 2020 EFSI CEF Erasmus+

B 2016

DB 2017

+7,9%

+29,5% +14,7%

+16,2%

Jobs, Growth and Investment (2) h. 1B: Economic, social and territorial cohesion

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0.00

10.00

20.00

30.00

40.00

50.00

60.00

Commitments Payments

B 2016

DB 2017

+5,4%

-23,5%

Funds allocated to migration 2015-2017 (all headings)

Initial amounts versus increase because of the crisis

10

Sustained internal European response to the migration and security challenge (Heading 3)

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2017 Draft Budget: EUR +1,8 billion compared to the initial financial programming.

Enhancing Security and Defence

•Preparatory Action for Defence Research Projects

Need for increased security cooperation in Europe

Cooperation in research for European technology autonomy Critical defence technologies

Advanced manufacturing for defence

Implemented by the intergovernmental European Defence Agency

Allocated EUR 25 million

Some redeployment (Copernicus / ITER) so impact on margin of heading 1a is only EUR 15 million

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Use of flexibilities in the DB 2017

TOTAL: EUR 3 billion of flexibilities used

For migration EUR 1,7 billion :

• The flexibility instrument: EUR +0,53 billion

• The Contingency Margin for CA: EUR +1,16 billion

Offset in 2017: Use of 50% of unallocated margin Heading 2

Remaining margin is EUR 640 million

Use of 86% of unallocated margin Heading 5

For Jobs and Growth (EFSI) EUR 1,3 billion (Global Margin for Commitments)

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Almost all institutions achieved the 5% Staff reduction : -1770 posts

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Institutions Up to 2016 DB 2017 Remain

posts Remain %

European Parliament -102 - 179 3.2%

European Council and Council -142 -15 - 0.0%

Commission -1 015 -239 - 0.0%

Court of Justice of the European Union -60 -19 19 1.0%

Court of Auditors -36 -9 -1 -0.1%

European Economic and Social Committee -28 -6 - 0.0%

Committee of the Regions -17 -9 -1 -0.2%

European Ombudsman -2 -1 - 0.0%

European Data-Protection Supervisor -2 - - 0.0%

European External Action Service -51 -17 16 1.0%

Total Institutions -1455 -315 212 0.5%

• The EP has committed to the reduction of 179 posts over 2017-2019. This does not take into account the 35 posts proposed in the DAB3/2016.

• The EEAS has committed to the last tranche of staff reduction (16 posts) in 2018. • Although there is a decrease of posts, administrative expenditure of the Institutions increases by 3,2%

DAB 3/2016: Security of the Institutions

Additional appropriations requested for nearly all Institutions (headquarters and delegations) to reinforce:

- security of information

- security of persons

- security of buildings

35 security agents for armed protection of strategic points inside the Parliament's buildings in all three duty stations

Security needs for 14 European schools (26,000 pupils)

Total amount: EUR 15,8 million

BFOR: Improvements in the Programme Statements

Erasmus +

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[…] More than 18 0 0 0 projects selected with more than 1,15

million participants and 70 0 0 0 organisations involved […]

[…] During the 20 0 7-20 13 programming period, the

Programmes have managed the mobility of about 3 million

beneficiaries […]

State of play of current

programme

Indicators with actual data

Performance of predecessor

Other key proposals in 2016

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Mid-term Review/Revision

Financial Regulation (simplification) Further work on Budget Focused on Results

Thank you for your attention!