The Committee on Budgets\nadopted the report by Francesca BALZANI (S&D, IT) on the\nmandate for the trilogue on the 2012 Draft Budget.
\nMembers recall that the\nEuropean Parliament put the Europe 2020 strategyfor a\nsmart, sustainable and inclusive growth at the centre of the 2012\nEU budgetary strategy. The latter will require a huge amount of\nfuture-oriented investment up to 2020, estimated at no less than\nEUR 1 800 billion. Accordingly, necessary investments - at\nboth EU and Member State level - must be made now and delayed no\nlonger, to improve education levels, foster social inclusion, in\nparticular through the reduction of poverty, and the development of\na knowledge-based society rooted in the overall EU scientific and\ntechnological capacity.
\nThe committee is of the\nopinion that the EU budget has a role to play as a leverage tool\nfor Member States' recovery policies by triggering and supporting\nnational investment to reinforce growth and employment. Therefore,\nsupport for youth training, mobility and employment, SMEs, research\nand development should be a key priority of the EU\nbudget.
\nDraft\nbudget : at the moment, the EU\ndraft budget for 2012, as proposed by the Commission, amounts\nto:
\nrepresenting respectively\n1.12 % and 1.01% of the EU's forecast gross national income (GNI)\nfor 2012. This proportion remains noticeably stable between 2011\nand 2012, with GNI growth estimated by the Commission at no less\nthan +4.7% in 2012 (in current prices). Members stress that this is\na question of institutional credibility and coherence of the EU\nproject when EU responsibilities and commitments keep on growing.\nEndowing targeted policy areas and new competencies established at\nEU level with meaningful and visible financial capacity is a\npriority.
\nWith regard to budgetary\npriorities linked to the Europe 2020 strategy, Members note the\nCommission's estimate that all in all 43.5% of the DB 2012 (in\ncommitment appropriations) contributes to the objectives of the\nstrategy. They find this estimate positive but not sufficient.\nAppropriations in the EU 2012 Budget should be set at an\nappropriate level to ensure the continuation of EU policies and the\nachievement of EU objectives, particularly in the wake of the Arab\nSpring and the unrest in the Middle East.
\nThe other main points\nMembers call for are as follows: i) as requested by Parliament in\nits resolution of 24 March\n2011, the determine political and budgetary\npositive and negative priorities as well as the possibility of\nfurther savings and reallocations including the financing of\nactions aiming at tackling the effects of the crisis and promoting\ngrowth; ii) rejection of any attempt by the Council, to make\nhorizontal cuts in the budget, deciding on the overall level of\nappropriations a priori, without duly taking into account an\naccurate assessment of the actual needs; iii) keeping the proposed\nincrease in payment appropriations compared to 2011 and rejecting\nany cuts proposed by the Council; iv) ways to reduce the\nunprecedented level of outstanding commitments (RALs). Members\nrecall the budgetary surplus of EUR 4.9 billion in 2010 that\nwill be returned to Member States and they note that this amount\ncan make a clear difference to the EU's annual budget.
\nWith regard to the\nbudgetary headings, Members make the following points:
\nHeading 1a:\nMembers take note of the Commission's proposal\nto increase commitment appropriations by 12.6% (to EUR 15 223\nmillion) and payment appropriations by 8.1% (to EUR 12 566\nmillion), since Heading 1a is the key heading of the MFF 2007-2013\nin terms of reaching the objectives of the Europe 2020 strategy.\nThey regret, however, that most of the increases provided under\nthis heading for 2012 do not go beyond the mere yearly breakdown of\nmultiannual global amounts agreed to by both Parliament and Council\nwhen these programmes and actions were adopted. They note that the\nCommission does not generally propose to boost the support for\ninvestments urgently needed to implement the seven flagship\ninitiatives except for the Competiveness and Innovation Framework\nprogramme (CIP), Trans-European Transport Network and Energy\nnetwork, Erasmus Mundus and Lifelong Learning. Members intend to\ntake full advantage, where appropriate, of the 5% legislative\nflexibility allowed under Point 37 of the IIA, in order to further\nboost key and pressing investments.
\nFurthermore, the committee\nstrongly reaffirms its opposition to any form of redeployment from\nEC FP7 since this would endanger its successful implementation and\nsignificantly reduce the implementation of the flagship initiatives\nof the Europe 2020 strategy. Noting, moreover, that an important\npart of the nominal increase in Heading 1a is linked to the\nadditional funds of EUR 750 million required by ITER, it is\nconcerned about the proposed EUR 100 million redeployment for ITER\nand the extra cuts of EUR 64 million made to EC FP7. Members demand\nthat the Commission proposes to use all the savings (amounting in\ntotal to EUR 190 million) to be made in 2012 for the benefit of\noperational expenditure under the EC FP7.
\nMembers go on to call\nfor:
\nHeading 1b:\nrecalling the decisive contribution of cohesion\npolicy, Members take the view accordingly that, while its\nredistributive nature and its aim to reduce regional disparities\nshould be preserved, cohesion policy must remain EU-wide investment\npolicy. They note that total expenditure for Heading 1b is\nestimated at EUR 52 739 million in commitments appropriations,\nrepresenting an increase of 3.4% compared to 2011. They welcome the\n8.4% increase in payment appropriations to EUR 45 134 million.\nMembers state they will strictly oppose any possible decrease in\nthe level of payments compared to the one proposed by the\nCommission in its Draft Budget. At the same time, they call\non the Commission to: i) collect demographic data of the\nbeneficiaries of the cohesion policy, the European Social Fund\nnotably, in order to monitor the real impact of the funds;; ii)\nkeep on working closely with those Member States with a low\nabsorption rate in order to further improve absorption on the\nground; iii) continue its reflection on how to simplify the\ncomplex system of rules and requirements imposed by the EU and/or\nnational legislation.
\nHeading 2:\nMembers note that the draft budget 2012 proposes\nto increase commitment appropriations by 2.6% to EUR 60 158\nmillion and payment appropriations by 2.8% to EUR 57 948\nmillion as compared with Budget 2011, which increases remain below\nthe increase proposed by the Commission for the budget as a whole.\nThey underline the fact that market interventions remain almost\nstable compared with Budget 2011, while price volatility and the\ninstability of certain markets continue to affect the agricultural\nsector. The committee asks the Commission to develop concrete\nproposals for dealing with price volatility. It notes that\nthe traditional agricultural amending letter to be presented in\nAutumn 2011 will adjust the current estimates to a more precise\nassessment of the real needs. Members call for the following: i)\nfurther reduction of export refunds; ii) strengthen actions on food\nand sustainability as two of the main challenges for the CAP; iii)\nstrengthening of programmes on LIFE and water protection and the\npreservation of biodiversity in other policies,; iv) adequate\nfinancing of the Common Fisheries Policy and, in particular,\ncombating Illegal, Unreported and Unregulated fishing.
\nHeading 3a:\nMembers note the overall increase in funding\nproposed in the draft budget 2012 compared to Budget 2011 for\nactions encompassed under this heading (+17.7% in commitments\nappropriations, +6.8 % in payment appropriations). These\nincreases are mostly linked to three of the\nfour Solidarity and Management of Immigration programmes, but\nthe increases are simply the result of the yearly breakdown of\nmultiannual global amounts agreed upon by both Parliament and\nCouncil when these programmes and actions were adopted. In this\ncontext, Members wonder whether the draft budget presented by the\nCommission constitutes an appropriate and updated answer to the\ncurrent challenges facing the EU, not least in the context of the\nongoing events in the Southern Mediterranean, the management of\nlegal migration and slowing down of illegal migration, and the need\nfor sufficient funding to handle emergency situations in a spirit\nof full respect of internal protection rules and human\nrights. They call to strengthen FRONTEX and the Refugee\nFund.
\nHeading 3b:\nthe committee deeply regrets that overall\nappropriations under this heading are down for a third consecutive\nyear, with commitment appropriations being reduced by 0.1% (to EUR\n683.5 million) and payment appropriations by 0.3 % (to EUR\n645.7 million) as compared to the 2011 Budget (excluding the EU\nSolidarity Fund), leaving a margin of EUR 15.5 million. It takes\ndue note of the Commission's proposal to increase by EUR 8 million,\nas compared to the initial financial programming, the 2012\nallocations for Youth in Action but regret that similar efforts are\nnot being proposed for programmes such as MEDIA and Culture 2007,\nthat the Commission has not proposed any specific measure in favour\nof sport, and deplores the decrease in the Civil Protection\nFinancial Instrument's funding. Members recall that, in order to\nensure transparency and full involvement of the European Parliament\nand its Members, European Public Spaces need to have their own\nseparate line. They regret the Commission proposal to empty this\nline and to merge the EPS allocations with the Commission\nRepresentations' line and underline that Parliament will not accept\nany attempt to change the will of the budgetary authorities in this\nmatter.
\nHeading 4:\nMembers note that the commitment and payment\nappropriations requested in the draft budget 2012 have increased by\n2.9% and 0.8%, as compared to the 2011 Budget, to EUR 9 009.3\nand EUR 7 293.7 million respectively (account being taken\nof the Emergency Aid reserve). They are convinced that a concrete\neffort must be made to make optimal, coordinated use of all\nEuropean instruments available and Member State actions.\nFlexibility in the programming and implementation of the EU\ninstruments must be further improved to allow an adequate and\neffective response to political and humanitarian crises in third\ncountries. It is the EU's duty to respond adequately to\nrecent political developments in Mediterranean neighbouring\ncountries and to provide support and assistance to movements\nfighting for democratic values. Members reiterate however\nthat reinforcement of financial assistance to these countries must\nnot be detrimental to priorities and instruments for the benefit of\nneighbouring Eastern European countries. They are concerned that\nthe proposed margin of EUR 246.7 million may be insufficient to\naddress the new needs under Heading 4. They regret the Commission's\nproposal to cut funding for the cooperation with developing\ncountries in Asia and Latin America and call for adequate funding.\nMembers strongly oppose the other decreases, amounting to EUR 78\nmillion overall, made to DCI geographical programmes, and will\nfirmly reject any systematic, quasi-automatic and sometimes\nunconsidered cuts by the other branch of the budgetary\nauthority in administrative expenditure under Heading 4 for\nthe sole sake of decreasing appropriations.
\nHeading 5:\nthe committee notes that total administrative\nexpenditure for all institutions is estimated at\nEUR 8 281 million, representing an increase of 1.3%\nas compared to 2011. It notes the letter from the Commissioner for\nFinancial Programming and Budget of 3 February 2011 committing\nto an increase in Heading 5 expenditure below 1% and no new staff\nas compared to 2011. Members underline that the European Parliament\nhas succeeded to reduce its own estimates by around EUR 50 million\ncompared to the first proposal of preliminary draft estimates.\nMembers feel however, that any further cut to 2012 administrative\nappropriations might have an adverse impact on the implementation\nof programmes. They emphasise that while EU competences keep on\nincreasing, this trend is not sustainable in the long term and will\nhave an adverse impact on the swift, regular and effective\nimplementation of EU actions and programmes. They acknowledge the\nCommission's efforts not to request any additional posts and ask\nfor further information on posts needed to ensure the appropriate\nmonitoring of Member States' economic and financial situation\nwithin DG ECFIN. Members note the 4% increase in expenditure on\npensions (as against +5.2% from 2010 to 2011) in view of the wave\nof retirements of officials and will carefully scrutinise the\nproposed overall 1.7% increase for the European Schools, which is\nbelow that foreseen in the financial programming.
\nPilot projects -\npreparatory actions, and agencies:\nthe report stresses that pilot projects (PPs) and preparatory\nactions (PAs) are key tools for the formulation of political\npriorities and for paving the way for new initiatives. They intend,\ntherefore, to support by all possible means its proposals regarding\npilot projects and preparatory actions for the 2012 Budget. Members\nstress that EU agencies' budget allocations are far from consisting\nin administrative expenditure alone, but disapproves again of the\nuse of assigned revenue to reduce the EU Budget contribution to\nfee-dependent agencies, which is used by the Commission to increase\nmargins artificially.
\nLastly, the report\nconsiders the following issues to be of specific interest for the\ntrilogue due to take place on 11 July 2011:
\nThe European Parliament\nadopted by 379 votes to 128, with 94 abstentions, a resolution on\nthe mandate for the trilogue on the 2012 Draft Budget.
\nParliament recalls that the\n2012 budgetary procedure is the second procedure carried out on the\nbasis of the Treaty of Lisbon, and important lessons can be drawn\nfrom last year's experience. The trilogue which will be held in\nJuly 2011 should enable the representatives of the two arms of the\nbudgetary authority to discuss the priorities they have identified\nwith regard to the annual budget 2012 and possibly find common\nground that could be taken into account in their respective\nreadings.
\nGeneral\nanalysis: Parliament recalls that the\nEuropean Parliament put the Europe 2020 strategyfor a\nsmart, sustainable and inclusive growth at the centre of the 2012\nEU budgetary strategy. The latter will require a huge amount of\nfuture-oriented investment up to 2020, estimated at no less than\nEUR 1 800 billion. Accordingly, necessary investments - at\nboth EU and Member State level - must be made now and delayed no\nlonger, to improve education levels, foster social inclusion, in\nparticular through the reduction of poverty, and the development of\na knowledge-based society rooted in the overall EU scientific and\ntechnological capacity.
\nDraft\nbudget: at the moment, the EU draft\nbudget for 2012, as proposed by the Commission, amounts\nto:
\nrepresenting respectively\n1.12 % and 1.01% of the EU's forecast gross national income (GNI)\nfor 2012. This proportion remains noticeably stable between 2011\nand 2012, with GNI growth estimated by the Commission at no less\nthan +4.7% in 2012 (in current prices). Members stress that this is\na question of institutional credibility and coherence of the EU\nproject when EU responsibilities and commitments keep on growing.\nEndowing targeted policy areas and new competencies established at\nEU level with meaningful and visible financial capacity is a\npriority.
\nWith regard to budgetary\npriorities linked to the Europe 2020 strategy, Members note the\nCommission's estimate that all in all 43.5% of the DB 2012 (in\ncommitment appropriations) contributes to the objectives of the\nstrategy. They find this estimate positive but not sufficient.\nAppropriations in the EU 2012 Budget should be set at an\nappropriate level to ensure the continuation of EU policies and the\nachievement of EU objectives, particularly in the wake of the Arab\nSpring and the unrest in the Middle East.
\nOther salient issues on\nwhich the Parliament focuses are as follows:
\nHeading 1a:\nParliament takes note of the Commission's\nproposal to increase commitment appropriations by 12.6% (to EUR 15\n223 million) and payment appropriations by 8.1% (to EUR 12 566\nmillion), since Heading 1a is the key heading of the MFF 2007-2013\nin terms of reaching the objectives of the Europe 2020 strategy. It\nregrets, however, that most of the increases provided under this\nheading for 2012 do not go beyond the mere yearly breakdown of\nmultiannual global amounts agreed to by both Parliament and Council\nwhen these programmes and actions were adopted. Members note that\nthe Commission does not generally propose to boost the support for\ninvestments urgently needed to implement the seven flagship\ninitiatives except for the Competiveness and Innovation Framework\nprogramme (CIP), Trans-European Transport Network and Energy\nnetwork, Erasmus Mundus and Lifelong Learning. They intend to take\nfull advantage, where appropriate, of the 5% legislative\nflexibility allowed under Point 37 of the IIA, in order to further\nboost key and pressing investments.
\nFurthermore, the committee\nstrongly reaffirms its opposition to any form of redeployment from\nEC FP7 since this would endanger its successful implementation and\nsignificantly reduce the implementation of the flagship initiatives\nof the Europe 2020 strategy. Noting, moreover, that an important\npart of the nominal increase in Heading 1a is linked to the\nadditional funds of EUR 750 million required by ITER, it is\nconcerned about the proposed EUR 100 million redeployment for ITER\nand the extra cuts of EUR 64 million made to EC FP7. Members demand\nthat the Commission proposes to use all the savings (amounting in\ntotal to EUR 190 million) to be made in 2012 for the benefit of\noperational expenditure under the EC FP7.
\nMembers go on to call\nfor:
\nHeading 1b:\nrecalling the decisive contribution of cohesion\npolicy, Members take the view accordingly that, while its\nredistributive nature and its aim to reduce regional disparities\nshould be preserved, cohesion policy must remain EU-wide investment\npolicy. They note that total expenditure for Heading 1b is\nestimated at EUR 52 739 million in commitments appropriations,\nrepresenting an increase of 3.4% compared to 2011. They welcome the\n8.4% increase in payment appropriations to EUR 45 134 million.\nMembers state they will strictly oppose any possible decrease in\nthe level of payments compared to the one proposed by the\nCommission in its Draft Budget. At the same time, they call\non the Commission to: i) collect demographic data of the\nbeneficiaries of the cohesion policy, the European Social Fund\nnotably, in order to monitor the real impact of the funds; ii) keep\non working closely with those Member States with a low absorption\nrate in order to further improve absorption on the\nground; iii) simplify the complex system of rules and\nrequirements imposed by the EU and/or national\nlegislation.
\nHeading 2:\nMembers note that the draft budget 2012 proposes\nto increase commitment appropriations by 2.6% to EUR 60 158\nmillion and payment appropriations by 2.8% to EUR 57 948\nmillion as compared with Budget 2011, which increases remain below\nthe increase proposed by the Commission for the budget as a whole.\nThey underline the fact that market interventions remain almost\nstable compared with Budget 2011, while price volatility and the\ninstability of certain markets continue to affect the agricultural\nsector. Parliament asks the Commission to develop concrete\nproposals for dealing with price volatility. It notes that the\ntraditional agricultural amending letter to be presented in Autumn\n2011 will adjust the current estimates to a more precise assessment\nof the real needs. Members call for the following: i) further\nreduction of export refunds; ii) strengthen actions on food and\nsustainability as two of the main challenges for the CAP; iii)\nstrengthening of programmes on LIFE and water protection and the\npreservation of biodiversity in other policies,; iv) adequate\nfinancing of the Common Fisheries Policy and, in particular,\ncombating Illegal, Unreported and Unregulated fishing.
\nHeading 3a:\nMembers note the overall increase in funding\nproposed in the draft budget 2012 compared to Budget 2011 for\nactions encompassed under this heading (+17.7% in commitments\nappropriations, +6.8 % in payment appropriations). These\nincreases are mostly linked to three of the\nfour Solidarity and Management of Immigration programmes, but\nthe increases are simply the result of the yearly breakdown of\nmultiannual global amounts agreed upon by both Parliament and\nCouncil when these programmes and actions were adopted. In this\ncontext, Members wonder whether the draft budget presented by the\nCommission constitutes an appropriate and updated answer to the\ncurrent challenges facing the EU, not least in the context of the\nongoing events in the Southern Mediterranean, the management of\nlegal migration and slowing down of illegal migration, and the need\nfor sufficient funding to handle emergency situations in a spirit\nof full respect of internal protection rules and human\nrights.
\nIn an amendment adopted in\nPlenary, Members deeply regret the fact that the Commission is\nsending a message of rejection to refugees by substantially\nincreasing appropriations for the External Border Fund and the\nEuropean Return Fund, while keeping those for the European Refugee\nFund at the same level as in 2011. They believe that the EU should\nadopt a more welcoming stance towards refugees, especially in light\nof the Libyan war and the ongoing severe repression of\ndemonstrators in several Arab countries. Parliament notes that,\nafter a presentation of the next technical steps, the 2011\nappropriations for SIS II placed in the reserve have been released\nby the budgetary authority; highlights the fact that the budgetary\nauthority will continue to closely monitor future developments\nconcerning SIS II and reserves the right to take action, should it\nprove necessary.
\nHeading 3b:\nParliament deeply regrets that overall\nappropriations under this heading are down for a third consecutive\nyear, with commitment appropriations being reduced by 0.1% (to EUR\n683.5 million) and payment appropriations by 0.3 % (to EUR\n645.7 million) as compared to the 2011 Budget (excluding the EU\nSolidarity Fund), leaving a margin of EUR 15.5 million. It takes\ndue note of the Commission's proposal to increase by EUR 8 million,\nas compared to the initial financial programming, the 2012\nallocations for Youth in Action but regret that similar efforts are\nnot being proposed for programmes such as MEDIA and Culture 2007,\nthat the Commission has not proposed any specific measure in favour\nof sport, and deplores the decrease in the Civil Protection\nFinancial Instrument's funding.
\nHeading 4:\nParliament notes that the commitment and payment\nappropriations requested in the draft budget 2012 have increased by\n2.9% and 0.8%, as compared to the 2011 Budget, to EUR 9 009.3\nand EUR 7 293.7 million respectively (account being taken\nof the Emergency Aid reserve). It is convinced that a concrete\neffort must be made to make optimal, coordinated use of all\nEuropean instruments available and Member State actions.\nFlexibility in the programming and implementation of the EU\ninstruments must be further improved to allow an adequate and\neffective response to political and humanitarian crises in third\ncountries. It is the EU's duty to respond adequately to recent\npolitical developments in Mediterranean neighbouring countries and\nto provide support and assistance to movements fighting for\ndemocratic values. Members reiterate however that reinforcement of\nfinancial assistance to these countries must not be detrimental to\npriorities and instruments for the benefit of neighbouring Eastern\nEuropean countries. Parliament invites the Commission to address\nall other outstanding issues and needs, including the financing of\nPalestine and UNRWA, which is decreased by EUR 100 million as\ncompared to 2011 Budget, in order to maximise the impact of EU\nassistance in the world.
\nMembers are concerned that\nthe proposed margin of EUR 246.7 million may be insufficient to\naddress the new needs under Heading 4. They regret the Commission's\nproposal to cut funding for the cooperation with developing\ncountries in Asia and Latin America and call for adequate funding.\nMembers strongly oppose the other decreases, amounting to EUR 78\nmillion overall, made to DCI geographical programmes, and will\nfirmly reject any systematic, quasi-automatic and sometimes\nunconsidered cuts by the other branch of the budgetary\nauthority in administrative expenditure under Heading 4 for\nthe sole sake of decreasing appropriations.
\nHeading 5:\nParliament notes that total administrative\nexpenditure for all institutions is estimated at\nEUR 8 281 million, representing an increase of 1.3%\nas compared to 2011. It notes the letter from the Commissioner for\nFinancial Programming and Budget of 3 February 2011 committing\nto an increase in Heading 5 expenditure below 1% and no new staff\nas compared to 2011. Members underline that the European Parliament\nhas succeeded to reduce its own estimates by around EUR 50 million\ncompared to the first proposal of preliminary draft estimates.\nMembers feel however, that any further cut to 2012 administrative\nappropriations might have an adverse impact on the implementation\nof programmes. They emphasise that while EU competences keep on\nincreasing, this trend is not sustainable in the long term\nand will have an adverse impact on the swift, regular and effective\nimplementation of EU actions and programmes. They acknowledge the\nCommission's efforts not to request any additional posts and ask\nfor further information on posts needed to ensure the appropriate\nmonitoring of Member States' economic and financial situation\nwithin DG ECFIN. Members note the 4% increase in expenditure on\npensions (as against +5.2% from 2010 to 2011) in view of the wave\nof retirements of officials and will carefully scrutinise the\nproposed overall 1.7% increase for the European Schools.
\nPilot projects -\npreparatory actions, and agencies:\nthe resolution stresses that pilot projects (PPs) and preparatory\nactions (PAs) are key tools for the formulation of political\npriorities and for paving the way for new initiatives. Members\nintend, therefore, to support by all possible means its proposals\nregarding pilot projects and preparatory actions for the 2012\nBudget. They stress that EU agencies' budget allocations are far\nfrom consisting in administrative expenditure alone.
\nLastly, Parliament\nconsiders the following issues to be of specific interest for the\ntrilogue due to take place on 11 July 2011:
\nThe Committee on Budgets\nadopted the report by Francesca BALZANI (S&D, IT) on the\nmandate for the trilogue on the 2012 Draft Budget.
\nMembers recall that the\nEuropean Parliament put the Europe 2020 strategyfor a\nsmart, sustainable and inclusive growth at the centre of the 2012\nEU budgetary strategy. The latter will require a huge amount of\nfuture-oriented investment up to 2020, estimated at no less than\nEUR 1 800 billion. Accordingly, necessary investments - at\nboth EU and Member State level - must be made now and delayed no\nlonger, to improve education levels, foster social inclusion, in\nparticular through the reduction of poverty, and the development of\na knowledge-based society rooted in the overall EU scientific and\ntechnological capacity.
\nThe committee is of the\nopinion that the EU budget has a role to play as a leverage tool\nfor Member States' recovery policies by triggering and supporting\nnational investment to reinforce growth and employment. Therefore,\nsupport for youth training, mobility and employment, SMEs, research\nand development should be a key priority of the EU\nbudget.
\nDraft\nbudget : at the moment, the EU\ndraft budget for 2012, as proposed by the Commission, amounts\nto:
\nrepresenting respectively\n1.12 % and 1.01% of the EU's forecast gross national income (GNI)\nfor 2012. This proportion remains noticeably stable between 2011\nand 2012, with GNI growth estimated by the Commission at no less\nthan +4.7% in 2012 (in current prices). Members stress that this is\na question of institutional credibility and coherence of the EU\nproject when EU responsibilities and commitments keep on growing.\nEndowing targeted policy areas and new competencies established at\nEU level with meaningful and visible financial capacity is a\npriority.
\nWith regard to budgetary\npriorities linked to the Europe 2020 strategy, Members note the\nCommission's estimate that all in all 43.5% of the DB 2012 (in\ncommitment appropriations) contributes to the objectives of the\nstrategy. They find this estimate positive but not sufficient.\nAppropriations in the EU 2012 Budget should be set at an\nappropriate level to ensure the continuation of EU policies and the\nachievement of EU objectives, particularly in the wake of the Arab\nSpring and the unrest in the Middle East.
\nThe other main points\nMembers call for are as follows: i) as requested by Parliament in\nits resolution of 24 March\n2011, the determine political and budgetary\npositive and negative priorities as well as the possibility of\nfurther savings and reallocations including the financing of\nactions aiming at tackling the effects of the crisis and promoting\ngrowth; ii) rejection of any attempt by the Council, to make\nhorizontal cuts in the budget, deciding on the overall level of\nappropriations a priori, without duly taking into account an\naccurate assessment of the actual needs; iii) keeping the proposed\nincrease in payment appropriations compared to 2011 and rejecting\nany cuts proposed by the Council; iv) ways to reduce the\nunprecedented level of outstanding commitments (RALs). Members\nrecall the budgetary surplus of EUR 4.9 billion in 2010 that\nwill be returned to Member States and they note that this amount\ncan make a clear difference to the EU's annual budget.
\nWith regard to the\nbudgetary headings, Members make the following points:
\nHeading 1a:\nMembers take note of the Commission's proposal\nto increase commitment appropriations by 12.6% (to EUR 15 223\nmillion) and payment appropriations by 8.1% (to EUR 12 566\nmillion), since Heading 1a is the key heading of the MFF 2007-2013\nin terms of reaching the objectives of the Europe 2020 strategy.\nThey regret, however, that most of the increases provided under\nthis heading for 2012 do not go beyond the mere yearly breakdown of\nmultiannual global amounts agreed to by both Parliament and Council\nwhen these programmes and actions were adopted. They note that the\nCommission does not generally propose to boost the support for\ninvestments urgently needed to implement the seven flagship\ninitiatives except for the Competiveness and Innovation Framework\nprogramme (CIP), Trans-European Transport Network and Energy\nnetwork, Erasmus Mundus and Lifelong Learning. Members intend to\ntake full advantage, where appropriate, of the 5% legislative\nflexibility allowed under Point 37 of the IIA, in order to further\nboost key and pressing investments.
\nFurthermore, the committee\nstrongly reaffirms its opposition to any form of redeployment from\nEC FP7 since this would endanger its successful implementation and\nsignificantly reduce the implementation of the flagship initiatives\nof the Europe 2020 strategy. Noting, moreover, that an important\npart of the nominal increase in Heading 1a is linked to the\nadditional funds of EUR 750 million required by ITER, it is\nconcerned about the proposed EUR 100 million redeployment for ITER\nand the extra cuts of EUR 64 million made to EC FP7. Members demand\nthat the Commission proposes to use all the savings (amounting in\ntotal to EUR 190 million) to be made in 2012 for the benefit of\noperational expenditure under the EC FP7.
\nMembers go on to call\nfor:
\nHeading 1b:\nrecalling the decisive contribution of cohesion\npolicy, Members take the view accordingly that, while its\nredistributive nature and its aim to reduce regional disparities\nshould be preserved, cohesion policy must remain EU-wide investment\npolicy. They note that total expenditure for Heading 1b is\nestimated at EUR 52 739 million in commitments appropriations,\nrepresenting an increase of 3.4% compared to 2011. They welcome the\n8.4% increase in payment appropriations to EUR 45 134 million.\nMembers state they will strictly oppose any possible decrease in\nthe level of payments compared to the one proposed by the\nCommission in its Draft Budget. At the same time, they call\non the Commission to: i) collect demographic data of the\nbeneficiaries of the cohesion policy, the European Social Fund\nnotably, in order to monitor the real impact of the funds;; ii)\nkeep on working closely with those Member States with a low\nabsorption rate in order to further improve absorption on the\nground; iii) continue its reflection on how to simplify the\ncomplex system of rules and requirements imposed by the EU and/or\nnational legislation.
\nHeading 2:\nMembers note that the draft budget 2012 proposes\nto increase commitment appropriations by 2.6% to EUR 60 158\nmillion and payment appropriations by 2.8% to EUR 57 948\nmillion as compared with Budget 2011, which increases remain below\nthe increase proposed by the Commission for the budget as a whole.\nThey underline the fact that market interventions remain almost\nstable compared with Budget 2011, while price volatility and the\ninstability of certain markets continue to affect the agricultural\nsector. The committee asks the Commission to develop concrete\nproposals for dealing with price volatility. It notes that\nthe traditional agricultural amending letter to be presented in\nAutumn 2011 will adjust the current estimates to a more precise\nassessment of the real needs. Members call for the following: i)\nfurther reduction of export refunds; ii) strengthen actions on food\nand sustainability as two of the main challenges for the CAP; iii)\nstrengthening of programmes on LIFE and water protection and the\npreservation of biodiversity in other policies,; iv) adequate\nfinancing of the Common Fisheries Policy and, in particular,\ncombating Illegal, Unreported and Unregulated fishing.
\nHeading 3a:\nMembers note the overall increase in funding\nproposed in the draft budget 2012 compared to Budget 2011 for\nactions encompassed under this heading (+17.7% in commitments\nappropriations, +6.8 % in payment appropriations). These\nincreases are mostly linked to three of the\nfour Solidarity and Management of Immigration programmes, but\nthe increases are simply the result of the yearly breakdown of\nmultiannual global amounts agreed upon by both Parliament and\nCouncil when these programmes and actions were adopted. In this\ncontext, Members wonder whether the draft budget presented by the\nCommission constitutes an appropriate and updated answer to the\ncurrent challenges facing the EU, not least in the context of the\nongoing events in the Southern Mediterranean, the management of\nlegal migration and slowing down of illegal migration, and the need\nfor sufficient funding to handle emergency situations in a spirit\nof full respect of internal protection rules and human\nrights. They call to strengthen FRONTEX and the Refugee\nFund.
\nHeading 3b:\nthe committee deeply regrets that overall\nappropriations under this heading are down for a third consecutive\nyear, with commitment appropriations being reduced by 0.1% (to EUR\n683.5 million) and payment appropriations by 0.3 % (to EUR\n645.7 million) as compared to the 2011 Budget (excluding the EU\nSolidarity Fund), leaving a margin of EUR 15.5 million. It takes\ndue note of the Commission's proposal to increase by EUR 8 million,\nas compared to the initial financial programming, the 2012\nallocations for Youth in Action but regret that similar efforts are\nnot being proposed for programmes such as MEDIA and Culture 2007,\nthat the Commission has not proposed any specific measure in favour\nof sport, and deplores the decrease in the Civil Protection\nFinancial Instrument's funding. Members recall that, in order to\nensure transparency and full involvement of the European Parliament\nand its Members, European Public Spaces need to have their own\nseparate line. They regret the Commission proposal to empty this\nline and to merge the EPS allocations with the Commission\nRepresentations' line and underline that Parliament will not accept\nany attempt to change the will of the budgetary authorities in this\nmatter.
\nHeading 4:\nMembers note that the commitment and payment\nappropriations requested in the draft budget 2012 have increased by\n2.9% and 0.8%, as compared to the 2011 Budget, to EUR 9 009.3\nand EUR 7 293.7 million respectively (account being taken\nof the Emergency Aid reserve). They are convinced that a concrete\neffort must be made to make optimal, coordinated use of all\nEuropean instruments available and Member State actions.\nFlexibility in the programming and implementation of the EU\ninstruments must be further improved to allow an adequate and\neffective response to political and humanitarian crises in third\ncountries. It is the EU's duty to respond adequately to\nrecent political developments in Mediterranean neighbouring\ncountries and to provide support and assistance to movements\nfighting for democratic values. Members reiterate however\nthat reinforcement of financial assistance to these countries must\nnot be detrimental to priorities and instruments for the benefit of\nneighbouring Eastern European countries. They are concerned that\nthe proposed margin of EUR 246.7 million may be insufficient to\naddress the new needs under Heading 4. They regret the Commission's\nproposal to cut funding for the cooperation with developing\ncountries in Asia and Latin America and call for adequate funding.\nMembers strongly oppose the other decreases, amounting to EUR 78\nmillion overall, made to DCI geographical programmes, and will\nfirmly reject any systematic, quasi-automatic and sometimes\nunconsidered cuts by the other branch of the budgetary\nauthority in administrative expenditure under Heading 4 for\nthe sole sake of decreasing appropriations.
\nHeading 5:\nthe committee notes that total administrative\nexpenditure for all institutions is estimated at\nEUR 8 281 million, representing an increase of 1.3%\nas compared to 2011. It notes the letter from the Commissioner for\nFinancial Programming and Budget of 3 February 2011 committing\nto an increase in Heading 5 expenditure below 1% and no new staff\nas compared to 2011. Members underline that the European Parliament\nhas succeeded to reduce its own estimates by around EUR 50 million\ncompared to the first proposal of preliminary draft estimates.\nMembers feel however, that any further cut to 2012 administrative\nappropriations might have an adverse impact on the implementation\nof programmes. They emphasise that while EU competences keep on\nincreasing, this trend is not sustainable in the long term and will\nhave an adverse impact on the swift, regular and effective\nimplementation of EU actions and programmes. They acknowledge the\nCommission's efforts not to request any additional posts and ask\nfor further information on posts needed to ensure the appropriate\nmonitoring of Member States' economic and financial situation\nwithin DG ECFIN. Members note the 4% increase in expenditure on\npensions (as against +5.2% from 2010 to 2011) in view of the wave\nof retirements of officials and will carefully scrutinise the\nproposed overall 1.7% increase for the European Schools, which is\nbelow that foreseen in the financial programming.
\nPilot projects -\npreparatory actions, and agencies:\nthe report stresses that pilot projects (PPs) and preparatory\nactions (PAs) are key tools for the formulation of political\npriorities and for paving the way for new initiatives. They intend,\ntherefore, to support by all possible means its proposals regarding\npilot projects and preparatory actions for the 2012 Budget. Members\nstress that EU agencies' budget allocations are far from consisting\nin administrative expenditure alone, but disapproves again of the\nuse of assigned revenue to reduce the EU Budget contribution to\nfee-dependent agencies, which is used by the Commission to increase\nmargins artificially.
\nLastly, the report\nconsiders the following issues to be of specific interest for the\ntrilogue due to take place on 11 July 2011:
\nThe European Parliament\nadopted by 379 votes to 128, with 94 abstentions, a resolution on\nthe mandate for the trilogue on the 2012 Draft Budget.
\nParliament recalls that the\n2012 budgetary procedure is the second procedure carried out on the\nbasis of the Treaty of Lisbon, and important lessons can be drawn\nfrom last year's experience. The trilogue which will be held in\nJuly 2011 should enable the representatives of the two arms of the\nbudgetary authority to discuss the priorities they have identified\nwith regard to the annual budget 2012 and possibly find common\nground that could be taken into account in their respective\nreadings.
\nGeneral\nanalysis: Parliament recalls that the\nEuropean Parliament put the Europe 2020 strategyfor a\nsmart, sustainable and inclusive growth at the centre of the 2012\nEU budgetary strategy. The latter will require a huge amount of\nfuture-oriented investment up to 2020, estimated at no less than\nEUR 1 800 billion. Accordingly, necessary investments - at\nboth EU and Member State level - must be made now and delayed no\nlonger, to improve education levels, foster social inclusion, in\nparticular through the reduction of poverty, and the development of\na knowledge-based society rooted in the overall EU scientific and\ntechnological capacity.
\nDraft\nbudget: at the moment, the EU draft\nbudget for 2012, as proposed by the Commission, amounts\nto:
\nrepresenting respectively\n1.12 % and 1.01% of the EU's forecast gross national income (GNI)\nfor 2012. This proportion remains noticeably stable between 2011\nand 2012, with GNI growth estimated by the Commission at no less\nthan +4.7% in 2012 (in current prices). Members stress that this is\na question of institutional credibility and coherence of the EU\nproject when EU responsibilities and commitments keep on growing.\nEndowing targeted policy areas and new competencies established at\nEU level with meaningful and visible financial capacity is a\npriority.
\nWith regard to budgetary\npriorities linked to the Europe 2020 strategy, Members note the\nCommission's estimate that all in all 43.5% of the DB 2012 (in\ncommitment appropriations) contributes to the objectives of the\nstrategy. They find this estimate positive but not sufficient.\nAppropriations in the EU 2012 Budget should be set at an\nappropriate level to ensure the continuation of EU policies and the\nachievement of EU objectives, particularly in the wake of the Arab\nSpring and the unrest in the Middle East.
\nOther salient issues on\nwhich the Parliament focuses are as follows:
\nHeading 1a:\nParliament takes note of the Commission's\nproposal to increase commitment appropriations by 12.6% (to EUR 15\n223 million) and payment appropriations by 8.1% (to EUR 12 566\nmillion), since Heading 1a is the key heading of the MFF 2007-2013\nin terms of reaching the objectives of the Europe 2020 strategy. It\nregrets, however, that most of the increases provided under this\nheading for 2012 do not go beyond the mere yearly breakdown of\nmultiannual global amounts agreed to by both Parliament and Council\nwhen these programmes and actions were adopted. Members note that\nthe Commission does not generally propose to boost the support for\ninvestments urgently needed to implement the seven flagship\ninitiatives except for the Competiveness and Innovation Framework\nprogramme (CIP), Trans-European Transport Network and Energy\nnetwork, Erasmus Mundus and Lifelong Learning. They intend to take\nfull advantage, where appropriate, of the 5% legislative\nflexibility allowed under Point 37 of the IIA, in order to further\nboost key and pressing investments.
\nFurthermore, the committee\nstrongly reaffirms its opposition to any form of redeployment from\nEC FP7 since this would endanger its successful implementation and\nsignificantly reduce the implementation of the flagship initiatives\nof the Europe 2020 strategy. Noting, moreover, that an important\npart of the nominal increase in Heading 1a is linked to the\nadditional funds of EUR 750 million required by ITER, it is\nconcerned about the proposed EUR 100 million redeployment for ITER\nand the extra cuts of EUR 64 million made to EC FP7. Members demand\nthat the Commission proposes to use all the savings (amounting in\ntotal to EUR 190 million) to be made in 2012 for the benefit of\noperational expenditure under the EC FP7.
\nMembers go on to call\nfor:
\nHeading 1b:\nrecalling the decisive contribution of cohesion\npolicy, Members take the view accordingly that, while its\nredistributive nature and its aim to reduce regional disparities\nshould be preserved, cohesion policy must remain EU-wide investment\npolicy. They note that total expenditure for Heading 1b is\nestimated at EUR 52 739 million in commitments appropriations,\nrepresenting an increase of 3.4% compared to 2011. They welcome the\n8.4% increase in payment appropriations to EUR 45 134 million.\nMembers state they will strictly oppose any possible decrease in\nthe level of payments compared to the one proposed by the\nCommission in its Draft Budget. At the same time, they call\non the Commission to: i) collect demographic data of the\nbeneficiaries of the cohesion policy, the European Social Fund\nnotably, in order to monitor the real impact of the funds; ii) keep\non working closely with those Member States with a low absorption\nrate in order to further improve absorption on the\nground; iii) simplify the complex system of rules and\nrequirements imposed by the EU and/or national\nlegislation.
\nHeading 2:\nMembers note that the draft budget 2012 proposes\nto increase commitment appropriations by 2.6% to EUR 60 158\nmillion and payment appropriations by 2.8% to EUR 57 948\nmillion as compared with Budget 2011, which increases remain below\nthe increase proposed by the Commission for the budget as a whole.\nThey underline the fact that market interventions remain almost\nstable compared with Budget 2011, while price volatility and the\ninstability of certain markets continue to affect the agricultural\nsector. Parliament asks the Commission to develop concrete\nproposals for dealing with price volatility. It notes that the\ntraditional agricultural amending letter to be presented in Autumn\n2011 will adjust the current estimates to a more precise assessment\nof the real needs. Members call for the following: i) further\nreduction of export refunds; ii) strengthen actions on food and\nsustainability as two of the main challenges for the CAP; iii)\nstrengthening of programmes on LIFE and water protection and the\npreservation of biodiversity in other policies,; iv) adequate\nfinancing of the Common Fisheries Policy and, in particular,\ncombating Illegal, Unreported and Unregulated fishing.
\nHeading 3a:\nMembers note the overall increase in funding\nproposed in the draft budget 2012 compared to Budget 2011 for\nactions encompassed under this heading (+17.7% in commitments\nappropriations, +6.8 % in payment appropriations). These\nincreases are mostly linked to three of the\nfour Solidarity and Management of Immigration programmes, but\nthe increases are simply the result of the yearly breakdown of\nmultiannual global amounts agreed upon by both Parliament and\nCouncil when these programmes and actions were adopted. In this\ncontext, Members wonder whether the draft budget presented by the\nCommission constitutes an appropriate and updated answer to the\ncurrent challenges facing the EU, not least in the context of the\nongoing events in the Southern Mediterranean, the management of\nlegal migration and slowing down of illegal migration, and the need\nfor sufficient funding to handle emergency situations in a spirit\nof full respect of internal protection rules and human\nrights.
\nIn an amendment adopted in\nPlenary, Members deeply regret the fact that the Commission is\nsending a message of rejection to refugees by substantially\nincreasing appropriations for the External Border Fund and the\nEuropean Return Fund, while keeping those for the European Refugee\nFund at the same level as in 2011. They believe that the EU should\nadopt a more welcoming stance towards refugees, especially in light\nof the Libyan war and the ongoing severe repression of\ndemonstrators in several Arab countries. Parliament notes that,\nafter a presentation of the next technical steps, the 2011\nappropriations for SIS II placed in the reserve have been released\nby the budgetary authority; highlights the fact that the budgetary\nauthority will continue to closely monitor future developments\nconcerning SIS II and reserves the right to take action, should it\nprove necessary.
\nHeading 3b:\nParliament deeply regrets that overall\nappropriations under this heading are down for a third consecutive\nyear, with commitment appropriations being reduced by 0.1% (to EUR\n683.5 million) and payment appropriations by 0.3 % (to EUR\n645.7 million) as compared to the 2011 Budget (excluding the EU\nSolidarity Fund), leaving a margin of EUR 15.5 million. It takes\ndue note of the Commission's proposal to increase by EUR 8 million,\nas compared to the initial financial programming, the 2012\nallocations for Youth in Action but regret that similar efforts are\nnot being proposed for programmes such as MEDIA and Culture 2007,\nthat the Commission has not proposed any specific measure in favour\nof sport, and deplores the decrease in the Civil Protection\nFinancial Instrument's funding.
\nHeading 4:\nParliament notes that the commitment and payment\nappropriations requested in the draft budget 2012 have increased by\n2.9% and 0.8%, as compared to the 2011 Budget, to EUR 9 009.3\nand EUR 7 293.7 million respectively (account being taken\nof the Emergency Aid reserve). It is convinced that a concrete\neffort must be made to make optimal, coordinated use of all\nEuropean instruments available and Member State actions.\nFlexibility in the programming and implementation of the EU\ninstruments must be further improved to allow an adequate and\neffective response to political and humanitarian crises in third\ncountries. It is the EU's duty to respond adequately to recent\npolitical developments in Mediterranean neighbouring countries and\nto provide support and assistance to movements fighting for\ndemocratic values. Members reiterate however that reinforcement of\nfinancial assistance to these countries must not be detrimental to\npriorities and instruments for the benefit of neighbouring Eastern\nEuropean countries. Parliament invites the Commission to address\nall other outstanding issues and needs, including the financing of\nPalestine and UNRWA, which is decreased by EUR 100 million as\ncompared to 2011 Budget, in order to maximise the impact of EU\nassistance in the world.
\nMembers are concerned that\nthe proposed margin of EUR 246.7 million may be insufficient to\naddress the new needs under Heading 4. They regret the Commission's\nproposal to cut funding for the cooperation with developing\ncountries in Asia and Latin America and call for adequate funding.\nMembers strongly oppose the other decreases, amounting to EUR 78\nmillion overall, made to DCI geographical programmes, and will\nfirmly reject any systematic, quasi-automatic and sometimes\nunconsidered cuts by the other branch of the budgetary\nauthority in administrative expenditure under Heading 4 for\nthe sole sake of decreasing appropriations.
\nHeading 5:\nParliament notes that total administrative\nexpenditure for all institutions is estimated at\nEUR 8 281 million, representing an increase of 1.3%\nas compared to 2011. It notes the letter from the Commissioner for\nFinancial Programming and Budget of 3 February 2011 committing\nto an increase in Heading 5 expenditure below 1% and no new staff\nas compared to 2011. Members underline that the European Parliament\nhas succeeded to reduce its own estimates by around EUR 50 million\ncompared to the first proposal of preliminary draft estimates.\nMembers feel however, that any further cut to 2012 administrative\nappropriations might have an adverse impact on the implementation\nof programmes. They emphasise that while EU competences keep on\nincreasing, this trend is not sustainable in the long term\nand will have an adverse impact on the swift, regular and effective\nimplementation of EU actions and programmes. They acknowledge the\nCommission's efforts not to request any additional posts and ask\nfor further information on posts needed to ensure the appropriate\nmonitoring of Member States' economic and financial situation\nwithin DG ECFIN. Members note the 4% increase in expenditure on\npensions (as against +5.2% from 2010 to 2011) in view of the wave\nof retirements of officials and will carefully scrutinise the\nproposed overall 1.7% increase for the European Schools.
\nPilot projects -\npreparatory actions, and agencies:\nthe resolution stresses that pilot projects (PPs) and preparatory\nactions (PAs) are key tools for the formulation of political\npriorities and for paving the way for new initiatives. Members\nintend, therefore, to support by all possible means its proposals\nregarding pilot projects and preparatory actions for the 2012\nBudget. They stress that EU agencies' budget allocations are far\nfrom consisting in administrative expenditure alone.
\nLastly, Parliament\nconsiders the following issues to be of specific interest for the\ntrilogue due to take place on 11 July 2011:
\n