DRAFT BUDGET 2018

Gnther H. Oettinger
Commissioner for Budget and Human Resources

BUDG Committee, 30 May 2017

 Mid-term revision: What does it bring?
Flexibilities
Global Margin for Commitments: extension in time
and scope
Increased amounts for flexibility margins:
Flexibility instrument and Emergency Aid Reserve
Reshuffling of unused funds: EU Solidarity Fund
and European Globalization Fund

Top-ups and funds

Youth Employment Initiative: +EUR 1,2 billion
Heading 1a programmes: +EUR 0,9 billion
Heading 3 migration & security: +EUR 2,5 billion
Heading 4: +EUR 1,4 billion
Political agreement in Council and EP consent ->
Mid-Term Revision integrated in the Draft
Budget 2018 2
EUR billion
Overview of the DB 2018
165,0

160,0
Commitments EU-GNI: 1,02%
155,0 Margin: EUR 1,1 billion
150,0

145,0 Payments: EU-GNI: 0,93%

140,0
Margin: EUR 10,4 billion

135,0

130,0

125,0

120,0
B 2017 DB 2018 B 2017 DB 2018
excluding special instr. special instruments

Commitments Payments
+1,4% +8,1%

EUR 160,6 billion EUR 145,4 billion 3

Priorities of the Draft Budget 2018

Facing the geopolitical challenges:

security and migration

Strategic investments,
competitiveness, jobs and youth

Effective implementation of the EU

Budget (BFOR)

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 Security and migration

Migration expenditure
2015-2018
DB 2018
Humanitarian aid
Africa Trust
Fund; 2,65
European Neighbourhood
Instrument (ENI) 0,2

Development Cooperation
0,72 1,08
Instrument (DCI) Heading 3;
Instrument contributing to EUR 22 9,61
Stability and Peace (IcSP) billion
Other (CFSP, EIDHR, EFSD) EUR 4,1
Heading 4;
billion 9,76
Agencies (FRONTEX, EASO,
0,72 0,33
EUROPOL, EU-LISA)
AMIF
0,31
ISF 0,10
0,60
0,05
Emergency support
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 Sustainable Investments and Youth
h. 1: Highlights on Smart and Inclusive Growth

Increased guarantee of EFSI 2 from EUR 16 to 26 billion

Horizon 2020: + EUR 770 million
Connecting Europe Facility: + EUR 220 million
Preparatory action on defence and security: EUR 40
million
New initiative European Solidarity Corps (ESC):
overall EUR 89,2 million
Youth Employment Initiative : + EUR 233,3 million
and matching with ESF.

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 Sustainable Investments
h. 1B: Economic, social and territorial cohesion

Payment Appropriations
55,0

50,0
EUR billion

45,0

40,0

35,0

30,0
B 2014 B 2015 B 2016 B 2017 DB 2018

Payment Appropriations for cohesion: EUR 46,7 billion (+25,7 %)

-> 'abnormal' backlog fully absorbed
-> implementation expected to reach cruising speed

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 Containing Administrative expenditure

1. Human resources
Commission accomplished 5% staff reduction over 2013-2017
To date - all institutions: -1 947 posts
of which, Commission: -1 254 posts
Agencies, EP and EEAS to complete the exercise by 2019.

2. Administrative expenditure
Nominal freeze for all non-salary related expenditure
Increases due to statutory and contractual obligations, in line
with costs of living

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EU added value of programmes

Programmes start to deliver

tangible results on the ground

80% of indicators reported in

the programme Statements are
informed (i.e. presenting actual
results or projections of results)

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 Overview on the Draft Budget 2018
DB 2018 Margins
2017 (in %)
APPROPRIATIONS BY HEADING In billion EUR In million EUR
CA PA CA PA CA PA
1. Smart and inclusive growth: 77,2 66,8 2,5% 18,3% 62,5(1)
1a.Competitiveness for growth and jobs 21,8 20,1 2,5% 3,9% 56,1
1b.Economic, social and territorial cohesion 55,4 46,7 2,4% 25,7% 6,5
2. Sustainable Growth: natural resources 59,6 56,4 1,7% 2,6% 713,5
Market related expenditure and direct aids 43,5 43,5 2,1% 2,1%
3. Security and Citizenship 3,5 3,0 -18,9% -21,7% 0(2)
4. Global Europe 9,6 8,9 -5,6% -5,6% 232,0
5. Administration 9,7 9,7 3,1% 3,1% 93,6(3)
Other special Instruments 1,1 0,6 80,5% 34,6%
Total appropriations 160,6 145,4 1,4% 8,1% 1 101 10 427
In % of EU-28 GNI 1,02% 0,93%

(1) The margin takes into account the mobilisation of the Global Margin for Commitments for EUR 891,7 million.
(2) The margin takes into account the use of the Flexibility instrument for EUR 817,1 million
(3) The margin takes into account the offsetting against the Contingency Margin for EUR 570,0 million (agreed
in 2017).
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DRAFT BUDGET 2018

Thank you for your attention

Gnther H. Oettinger
Commissioner for Budget and Human Resources