The proposal for a decision to mobilise the Flexibility Instrument
in 2010 to finance the Banana Accompanying Measures was presented
by the Commission in April 2010 in parallel with Draft Amending
Budget No 3/2010 (see 2010/2048(BUD)
Following the proposal to amend Regulation (EC) No 1905/2006
establishing a financing instrument for development cooperation,
Draft Amending Budget No 3/2010 was introduced to cover
appropriations related to the financing of the Banana Accompanying
Measures (BAM) in favour of the main ACP banana-supplying countries
affected by the Most Favoured Nation (MFN) liberalisation in the
framework of the World Trade Organisation (WTO).
The draft amending budget proposed that EUR 75 million should be
allocated to the BAM in 2010 under budget Article 21 06 07 (Banana
Accompanying Measures), created during the 2010 budget procedure.
This amount would be entered into the reserve pending the adoption
of the legislation amending Regulation (EC) No 1905/2006, and would
be financed as follows: EUR 55.8 million in commitment
appropriations from redeployment of appropriations under Heading 4
of the Multiannual Financial Framework (MFF), EUR 0.9 million
from the margin of Heading 4 and the remaining EUR 18.3
million through the mobilisation of the Flexibility
Instrument in 2010.
Parliament found it unacceptable that, under the Commission
proposals, the major part of this financial assistance in 2010
would have stemmed from redeployment within heading 4. It pointed
out that the proposed redeployment affected instruments and actions
that the EU and particularly the European Parliament had defined as
being of great interest. It also pointed out that financial
assistance for the BAM should have been integrated at an earlier
stage into the current MFF, that new priorities should be financed
by new funds and that the financing of the BAM fulfilled the
conditions provided for in point 27 of the IIA of 17 May 2006 on
the use of the Flexibility Instrument.
It therefore called on the Commission to use the remaining
margin of EUR 875 530 under Heading 4 and to present a new
proposal for the mobilisation of the Flexibility Instrument for the
remaining amount needed to finance the BAM in 2010 - EUR
74 124 470. This was opposed by the Council,
which was unwilling to mobilise the Flexibility Instrument at all
for this purpose, and wanted all the funds to come from
redeployments within Heading 4.
It was agreed that the budgetary conciliation on the 2011 draft
general budget would be extended to include Draft Amending Budget
No 3/2010 and the associated proposal to mobilise the Flexibility
Instrument for the BAM, given that these two dossiers were related
to the broader context of the negotiations, i.e. the future
financing framework and interinstitutional cooperation on budgetary
matters following the Lisbon Treaty.
With the failure of the budgetary conciliation process on 15
November 2010, the two dossiers on Draft Amending Budget No 3/2010
and the proposed mobilisation of the Flexibility Instrument for the
BAM became obsolete and have now lapsed.