Draft amending budget No 4/2024: update of revenue (own resources) and adjustments to some decentralised agencies

Draft amending budget No 4/2024: update of revenue (own resources) and adjustments to some decentralised agencies

Committee on Budgets

European Parliament resolution of 22 October 2024 on the Council position on Draft amending budget No 4/2024 of the European Union for the financial year 2024 - update of revenue (own resources) and adjustments to some decentralised agencies (13195/2024 – C10-0109/2024 – 2024/0185(BUD))

The European Parliament,

–having regard to Article 314 of the Treaty on the Functioning of the European Union,

–having regard to Article 106a of the Treaty establishing the European Atomic Energy Community,

–having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012, and in particular Article 44 thereof,

–having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union, and in particular Article 44 thereof,

–having regard to the general budget of the European Union for the financial year 2024, as definitively adopted on 22 November 2023,

–having regard to Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027,

–having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources,

–having regard to Council Decision (EU, Euratom) 2020/2053 EU of 14 December 2020 on the system of own resources of the European Union and repealing Decision 2014/335/EU, Euratom,

–having regard to Draft amending budget No 4/2024, which the Commission adopted on 19 July 2024 (COM(2024)0931),

–having regard to the position on Draft amending budget No 4/2024, which the Council adopted on 23 September 2024 and forwarded to Parliament on 24 September 2024 (13195/2024 – C100109/2024),

–having regard to Rules 96 and 98 of its Rules of Procedure,

–having regard to the report of the Committee on Budgets (A10-0007/2024),

A.whereas the primary purpose of Draft amending budget No 4/2024 is to update the revenue side of the budget to take account of the latest developments and, additionally, to adjust the expenditure side of the budget in relation to a number of decentralised agencies,

B.whereas Draft amending budget No 4/2024 entails a revision of the own resources forecasts in relation to customs duties, which are 18,3 % below the May 2023 forecast, in the uncapped VAT base, which is 0,6 % below the May 2023 forecast, in non-recycled plastic packaging waste, which is up 0,6 % compared to the May 2023 forecast, and in the total EU GNI base, which is 0,3 % higher than the May 2023 forecast,

C.whereas Draft amending budget No 4/2024 also updates the 2024 United Kingdom contribution pursuant to the withdrawal agreement, which stands at EUR 2,38 billion, a significant reduction of EUR 1,52 billion compared to the estimate included in the 2024 budget; whereas Draft amending budget No 4/2024 also takes into account the fines and penalties cashed up to the end of May 2024, which increases the initial forecast for fines and penalties in the 2024 budget by EUR 513 million,

D.whereas Draft amending budget No 4/2024 proposes a number of adjustments to the financing of decentralised agencies, with a net increase of EUR 12 million overall and a proposal to mobilise the Flexibility Instrument for an amount of EUR 13,2 million to cover increases for the European Medicines Agency and Eurojust in the absence of any available margin under Heading 2b of the multiannual financial framework (the “MFF”),

1.Welcomes Draft amending budget No 4/2024 as submitted by the Commission;

2.Takes note that the decrease in the amount of own resources other than GNI (in particular with respect to customs duties) and in the size of the United Kingdom contribution to the budget results in an increase in GNI contributions of EUR 5,63 billion; notes that there is a significant divergence from the initial forecasting of customs duties and the United Kingdom contribution and calls on the Commission to examine scope for improving its forecasting, which is vital for the predictability of budgetary planning;

3.Underlines that, with Draft amending budget No 4/2024, GNI lump-sum reductions for the five beneficiary Member States amount to just under EUR 5,4 billion net; stresses that these rebates are inflation-linked and have therefore increased at a higher rate than the MFF ceilings, which are adjusted annually on the basis of the 2 % deflator; underlines that this anomaly increases the burden on the other Member States;

4.Emphasises the need for sustainable revenue for the Union budget, which has been severely stretched to respond to various crises in recent years; deplores, therefore, the absence of progress in the Council on the reform of the own resources system in line with the roadmap in the Interinstitutional Agreement; recalls its position in support of the amended Commission proposals and urges the Council and the Member States to adopt those proposals swiftly in order to increase the own resources available to the Union budget; recalls its long-standing position that fines and fees should be used as supplementary revenue for the Union budget;

5.Reiterates its long-standing position that new priorities require fresh financing; notes the series of adjustments to the budgets of decentralised agencies, primarily in accordance with tasks assigned to them under recently adopted legislation; recalls that agencies must have the necessary staff and budget to properly fulfil their mandates; deplores that, in several cases, additional resources for a decentralised agency entail a corresponding reduction in the programme envelope;

6.Regrets that, in the current MFF, a total of EUR 1,5 billion has so far been, or is proposed to be, redeployed from programmes to decentralised agencies; underlines that the magnitude of the redeployments is symptomatic of the stretched resources available to the Union budget and stresses the need for budgetary flexibility to adjust agencies’ resources in line with changes to their mandates and tasks during the MFF;

7.Notes that Draft amending budget No 4/2024 entails an increase of EUR 2 million for Eurojust owing to inflationary pressure; underlines that inflationary pressure is clearly a challenge for all decentralised agencies, with inflation running above the annual 2 % deflator by which the MFF ceilings increase and staff and operating costs for decentralised agencies under substantial pressure as a result, considers that the current treatment of decentralised agencies’ budgets as separate from administrative spending under Heading 7 of the MFF requires further reflection as part of the Commission’s preparations for the post-2027 MFF;

8.Approves the Council position on Draft amending budget No 4/2024;

9.Instructs its President to declare that Amending budget No 4/2024 has been definitively adopted and arrange for its publication in the Official Journal of the European Union;

10. Instructs its President to forward this resolution to the Council, the Commission, the other institutions and bodies concerned and the national parliaments.