Decision (EU) 2015/435 on the mobilisation of the Contingency Margin

to mobilise the full amount of the Contingency Margin for 2014 of EUR 4 026,7 million to react to the budgetary impact of unforeseen circumstances. CONTENT: Article 13 of Council Regulation 1311/2013 laying down the multiannual financial framework for the years 2014-2020 established a Contingency Margin of up to 0.03% of the Gross National Income of the Union. In accordance with Article 6 of this Regulation, the Commission calculated the absolute amount of this Contingency Margin for 2014. After having examined all other financial possibilities to react to unforeseen circumstances that have arisen after the multiannual financial framework payment ceiling for 2014 was first established in February 2013, it appears necessary to mobilise the full amount of the Contingency Margin available to complement the payment appropriations in the general budget of the European Union for the financial year 2014, above the payment ceiling. The Committee on Budgets adopted the report by Gérard DEPREZ (ADLE, BE) on the proposal for a decision of the European Parliament and of the Council on mobilisation of the Contingency Margin, in accordance with point 14 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management. Members recalled that the implementation of the MFF 2014-2020 started with a huge backlog in payments, with unpaid bills amounting to some EUR 23.4 billion at the end of 2013 for Cohesion policy only, and a level of outstanding commitments (RAL) reaching EUR 221.7 billion at the same date, i.e. EUR 41 billion above what was originally foreseen when the MFF 2007-2013 was agreed. They stated that this situation is unacceptable and requires urgent measures, having recourse to the flexibility mechanisms included in the MFF Regulation, with a view to not jeopardising the delivery of EU policies and programmes, as unanimously agreed in the MFF, but also to limiting the claims for interest on late payments and avoiding unduly increasing the economic exposure and vulnerability of beneficiaries of the Union budget. Avoiding abnormal RAL : Members also recalled that, in the framework of the budgetary conciliation for 2014, the Parliament, the Council, and the Commission jointly agreed, in light of the need to ensure an orderly progression of payments and avoid any abnormal shift of the RAL onto the 2015 budget, to have recourse to the various flexibility mechanisms contained in the MFF Regulation, including the Contingency Margin. After having examined all other financial possibilities to react to unforeseen circumstances, the Commission proposed to mobilise the full amount of the Contingency Margin available to complement the payment appropriations in the general budget of the Union for the financial year 2014, above the payment ceiling. Different interpretations : Members stated that the Council does not share Parliament's and Commission's interpretation that the EUR 350 million in payment appropriations mobilised in 2014 in respect of the Special Instruments provided for in the MFF Regulation…

Official title: Decision (EU) 2015/435 of the European Parliament and of the Council of 17 December 2014 on the mobilisation of the Contingency Margin

Summary extracted from the European Parliament's own per-stage procedure record. Data © European Union (Decision 2011/833/EU). Methodology.