BUDG Committee meeting 

Thursday 10 December 20159.00 – 12.30

BrusselsRoom: ASP 5G-3

Although the budget is not a Christmas treebearing gifts for all, I would nevertheless like totake this opportunity to thank you all for thesuccessful conclusion of the budgetaryprocedure this year, and send you my greetingsfor the season.Merry Christmas and my best wishes for 2016!

     Jean Arthuis, Chair  

Preparation of the post-electoral revision of the MFF 2014-2020: Parliament's input ahead of the Commission'sproposal

Co-Rapporteurs: Jan Olbrycht (PPE) et Isabelle Thomas (S&D)

•    Exchange of views with Commission representatives - Monitoring group

The Commission will present information on theimplementation of several MFF-related topics inthe framework of the preparation of the mid-termr e v i e w / r e v i s i o n .The Commission will report on the use of theflexibility provisions foreseen in the new MFFregulation so far, and in particular of the special

instruments (articles 9 to 15 of the MFF regulation).

A specific section will be devoted to the analysisof the payment backlog which the EU budgetexperienced in the last years of the MFF2007-2013.  This is the first of a series ofMonitoring Groups which will take place in 2016to assess (review) the functioning of existingprogrammes and instruments of the MFF and toprepare the EP strategic report ahead of the Commission'sproposal (tentative vote in BUDG foreseen in May 2016).

VOTING TIME

Mobilisation of the European Globalisation Adjustment Fund (application from Ireland – EGF/2015/006 IE/PWAInternational)

 Rapporteur: Victor Negrescu (S&D)

•    Consideration and adoption•    Deadline for tabling amendments: 7 December 2015, 12.00

The BUDG Committee will vote a draft report containing a Decision of the European Parliament and of the Council to mobilize theEGF.

The EGF contribution of EUR 442 293 is foreseen for re-integration into the labour market of 108 workers made redundant by PWAInternational, a company operating in the NACE Rev. 2 division 33 ('Repair and installation of machinery and equipment') in theSouth of Dublin. 108 young persons not in employment, education or training will also benefit from the measures. Theredundancies are linked to major structural changes in world trade patterns due to globalisation. This mobilisation request is based on the intervention criteria of Article 4(2) of the 2013 EGF Regulation, which, under exceptionalcircumstances,  allows for a derogation from the requirement of at least 500 workers being made redundant or self-employedpersons' activity ceasing, over a reference period of four months in an enterprise in a Member State, including workers maderedundant by suppliers and downstream producers and/or self-employed persons whose activity has ceased.

16 amendments were tabled to this draft report.

Mobilisation of the European Globalisation Adjustment Fund - EGF/2015/005 FI/Computer Programming - Finland

 Rapporteur: Marco Zanni (EFDD)

•    Exchange of views•    Deadline for tabling amendments: 7 December 2015, 12.00

The BUDG Committee will vote a draft report containing a Decision of the European Parliament and of the Council to mobilize theEGF.

The EGF contribution of EUR 2 623 200 is foreseen for re-integration into the labour market of 1 200 out of 1 603 workers maderedundant by 69 entreprises g in the NACE Rev. 2 division 62 ('Computer programming, consultancy and related activities') sector,all over Finland. The redundancies are linked to major structural changes in world trade patterns due to globalisation. This mobilisation request is based on the intervention criteria of Article 4(1)(b) of the 2013 EGF Regulation, which requires at least500 workers being made redundant over a reference period of nine months in enterprises operating in the same economic sectordefined at nACE Revision 2 Division and located in one region or two contiguous regions defined at NUTS 2 level in a MemberState.

13 amendments were tabled to this draft report.

European Investment Bank (EIB) - Annual Report 2014

 Rapporteur: Eider Gardiazabal Rubial (S&D)

•    Consideration and adoption•    Deadline for tabling amendments: : 23 November 2015, 17.00

The BUDG committee will adopt its first opinion to Parliament's yearly report on the EIB's annual activity report, which currentlyalternates between ECON and CONT.In her draft opinion, the rapporteur welcomes the launch of the European Fund for Strategic Investments, but warns that theEuropean Parliament will be extremely vigilant in monitoring compliance with the additionality criterion. She also calls for enhancedcooperation between the EIB and National Promotional Banks and Institutions and for an improved reporting on financialinstruments. The EIB external mandate is also adressed.

21 amendments were tabled to the draft report, mostly covering EFSI, SMEs and the issue of transparency of EIB operations.

2015 Budget: Section III - Commission

Rapporteur: Eider Gardiazabal Rubial (S&D) DEC 36, 39, 42, 43, 44, 45        

DEC 36 and are linked to the mobilisation of the European Globalisation Adjustment Fund as voted under points 5 and 6DEC 39on the agenda. DEC 36 provides EUR 442 293 for the case EGF/2015/006 IE/PWA International, whereas DEC 39 provides EUR 2623 200 for the case EGF/2015/005 FI/Computer programming.

DECs 42-45 all involve transfers related to humanitarian aid. DEC 42 covers additional needs in Afghanistan for an amount of EUR12 million in commitments and payments. DEC 43 is related to the situation in Sudan and South Sudan and intends to transferEUR 20 million in commitments and EUR 18 380 179 in payments. DEC 44 addesses the addional needs in Yemen for an amountof EUR 15 million in commitments and payments and DEC 45 intends to further support Serbia and Macedonia in responding to therefugee crisis for an amount of EUR 13 million in commitments and EUR 12 536 781 in payments. In total, EUR 60 million incommitment and EUR 57,9 million in payment appropriations are needed. The Commission has indentified available funds forredeployment from a number of budget lines in heading 4 for a total of EUR 60 million in commitment and EUR 39 million inpayment appropriations. The remaining balance of EUR 18,9 million in payment appropriations shall be covered through amobilisation of the Emergency Aid Reserve.

2015 Budget: Other Sections

 Rapporteur: Monika Hohlmeier (PPE)

For decision: EP C6/2015 - EP's contribution to the European schools

On 2nd December 2015 committee on Budget received the transfer request C6/2015 of the European Parliament, based on Article27 and 46 of the Financial Regulation.The purpose of this transfer proposal is to provide the means for the higher than expected expenses relating to item 1655 -

-by releasing EUR 85 000 from the reserve inscribedEuropean Parliament contribution for accredited European schools (Type II)in Chapter 10 1 - .Contingency Reserve

Following European Commission decision C(2013)4886 of 1 August 2013, each institution must bear in its own budget the costsrelating to enrolment of its staff’s children in Type II European schools. Forecasts were made mid 2014 (when this item was created in Parliament’s budget nomenclature) based on data available at thetime, while the number of children enrolled in Type II European schools for academic year 2015/2016 was known only during thelast trimester of 2015 and communicated to Parliament. The number of children enrolled increased significantly from one year toanother, hence the deficit.

For decision: EP C7/2015 - Mopping-up transfer - KAD

Based on Articles 25 and 46 of the Financial Regulation, this proposal intends to provide the means for the mobilisation ofunused appropriations of financial year 2015 to contribute to the construction works of the Konrad Adenauer Building inLuxembourg (KAD project).

In the sector of buildings and logistics the Parliament worked according to the mid-term Building Strategy, which had been adoptedby the Bureau in 2010. Under this strategy it was decided to regroup all Luxembourg Parliaments services, which are currently in 6different buildings (5 of which are rented) in different parts of the city in one new building (KAD).

The current cost estimation of the construction investments and including the renovation of the existing Konrad Adenauer buildingis EUR 450,2 million in current prices, over a period from 2013 to 2021.As indicated in the transfer request, the construction costs for the KAD project in 2016 are estimated at EUR 93 million,corresponding to 20,7% of the overall target cost. A significant share of these estimated costs in 2016 can already be financed bybudgetary resources already made available and not yet used. These budgetary resources (mainly originating from appropriationsof 2014 carried over to 2015) will be invested into the project in 2016 through a transfer via a fiduciary account which had beencreated for this purpose.This mopping-up transfer proposes to use the cumulated surplus of EUR 71 million (4% of the total budget) to reinforce the item2001 - , in order to partially cover the construction costs for the KAD building project in 2016.Lease payments

It could be recalled that until now, the end of the year "mopping-up" transfers were used to complement the funding for themultiannual building projects, such as KAD building in Luxembourg (2012-2015) and Martens building in Brussels (2011), whichwould led to a cumulated saving of EUR 46.9 million in interest rate payments.

As no appropriations were provided in the annual budgets for investments in KAD building since 2014, the EP expressly requested,in its resolutions of 22 October 2014 and 28 October 2015 on the draft budget for the financial years 2015  and 2016 , to committhe funds not used in the 2014 and 2015 budgets to the KAD project.

Building policy

 Rapporteur: Monika Hohlmeier (PPE)   EP - Montoyer

Renovation of the training building of the Parliament in Rue Montoyer 63, due to obsolescence and inadequacy of the existingbuilding.

END OF VOTING TIME

Commission Decision on the coordination of the actions of the Union and of the Member States through acoordination mechanism - the Refugee Facility for Turkey

Presentation by the Commission As a result of the ongoing refugee crisis, Turkey is a major first reception and transit country formigrants and will by the end of 2015 be hosting more than 2 million of asylum seekersand refugees, mostly from Syria. An Action Plan has been agreed in October betweenrepresentatives of Turkey and the EU in order to coordinate their efforts to address thischallenge. As part of it, substantial new financial resources are to be mobilised.

The Commission has therefore taken an autonomous decision, based on Article 210 (1) TFEU,to establish a EUR 3 billion Refugee Facility for Turkey. EUR 500 million would come from EU instruments (Humanitarian Aid, ENI,DCI, IPA and IcSP). An additional EUR 2,5 billion would be drawn from Member States contributions with a GNI-based allocationkey. Those contributions would be included into the Union's budget as external assigned revenue.

In a joint statement concluding the meeting of EU heads of state and government with Turkey on 29 November 2015, theestablishment of this Facility has been noted and it has been stated that "the EU is committed to provide an initial 3 billion euro ofadditional resources. The need for and nature of this funding will be reviewed in the light of the developing situation".The Commission will present its decision to the BUDG Committee.

Next meetings: 27-28 January 2016 (Brussels)