REPORT on the joint text on the draft general budget of the European Union for the financial year 2024 approved by the Conciliation Committee under the budgetary procedure

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the joint text on the draft general budget of the European Union for the financial year 2024 approved by the Conciliation Committee under the budgetary procedure

(11565/2023 - C9-0336/2023 - 2023/0264(BUD))

The European Parliament,

- having regard to the joint text approved by the Conciliation Committee including the relevant Parliament, Council and Commission statements (11565/2023 - C9-0336/2023),

- having regard to the draft general budget of the European Union for the financial year 2024, which the Commission adopted on 5 July 2023 (COM(2023)0300),

- having regard to the position on the draft general budget of the European Union for the financial year 2024, which the Council adopted on 5 September 2023 and forwarded to Parliament on 8 September 2023 (11565/2023 - C9-0336/2023),

- having regard to Letter of amendment No 1/2024 to the draft general budget of the European Union for the financial year 2024, which the Commission presented on 9 October (COM(2023)0531),

- having regard to its resolution of 18 October 2023 on the Council position on the draft general budget of the European Union for the financial year 2024[1]and to the budget amendments contained therein,

- 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 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[2],

- 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[3],

- having regard to Council Regulation (EU, Euratom) No 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021-2027[4],

- 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[5],

- having regard to Rule 95 and Rule 96 of its Rules of Procedure,

- having regard to the report of its delegation to the Conciliation Committee (A9-0362/2023),

1. Approves the joint text;

2. Confirms its statement as well as the joint statements annexed to this resolution;

3. Takes note of the Commission statement annexed to this resolution;

4. Instructs its President to declare that the general budget of the European Union for the financial year 2024 has been definitively adopted and to arrange for its publication in the Official Journal of the European Union;

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

ANNEX

FINAL
Budget 2024 - Elements for joint conclusions

These joint conclusions cover the following sections:

1. Budget 2024

2. Budget 2023 - Draft Amending Budget No. 4/2023

3. Statements

Summary overview

A. Budget 2024

According to the elements for joint conclusions:

- The overall level of commitment appropriations in the 2024 budget is set at EUR189 385,4 million. Overall, this leaves a margin below the MFF ceilings for 2024 of EUR 360,1 million in commitment appropriations.

- The overall level of payment appropriations in the 2024 budget is set at EUR 142 630,3 million. Overall, this leaves a margin below the MFF ceiling for 2024 of EUR 31 018,5 million in payment appropriations.

- The Flexibility Instrument for 2024 is mobilised in commitment appropriations for an amount of EUR 1 635,5 million, of which EUR 1 289,5 million for sub-heading 2b Resilience and Values, EUR 317,2 million for heading 5 Security and Defenceand EUR 28,9 million for heading 6 Neighbourhood and the World.

- In accordance with Article 11(1) a of the MFF Regulation, the Single Margin Instrument is mobilised in commitment appropriations for an amount of EUR 586,1 million, of which EUR 371,1 million for heading 6 Neighbourhood and the Worldand EUR 215,0 million for heading 7 European Public Administration.

The 2024 payment appropriations related to the mobilisation of the Flexibility Instrument in the years 2021 to 2024 are estimated by the Commission at EUR 1 734,4 million. The estimated payment schedule of the related outstanding amounts for these years is detailed in the following table:

B. Budget 2023

Draft Amending Budget (DAB) 4/2023 is approved as proposed by the Commission.

1. Budget 2024

1.1. 'Closed' lines

Unless stated otherwise below in these conclusions, all budget lines are confirmed as proposed by the Commission in the Draft Budget for 2024 as amended in Amending Letter No. 1/2024.

Additionally, unless stated otherwise, all budget lines amended by the Council and agreed by the Parliament in its reading are confirmed as amended by the Council.

For the other budget lines, the Conciliation Committee has agreed on the conclusions included in sections 1.2 to 1.7 below.

1.2. Horizontal issues

Decentralised agencies

The EU contribution (in commitment and payment appropriations) and the number of establishment plan posts for all decentralised agencies are set at the level proposed by the Commission in the Draft Budget for 2024 as amended in Amending Letter No. 1/2024, with the following exceptions:

• Under sub-heading 2b:

• The European Public Prosecutor's Office (EPPO, budget article 07 10 08), for which 13 posts are added to the establishment plan and the level of commitment and payment appropriations is increased by EUR 4 million.

• Under heading 4:

• The European Union Agency for Asylum (EUAA, budget article 10 10 01), for which the level of commitment and payment appropriations is increased by EUR 1 million to cover the costs of 10 additional contractual agent posts.

• The European Border and Coast Guard Agency (Frontex, budget article 11 10 01), for which the level of commitment and payment appropriations is reduced by EUR 15 million.

Executive agencies

The EU contribution (in commitment and payment appropriations) and the number of establishment plan posts for executive agencies are set at the level proposed by the Commission in the Draft Budget.

Pilot Projects/Preparatory Actions

A comprehensive package of 46 pilot projects/preparatory actions (PP/PA), of which 36 new, for a total amount of EUR 107,4 million in commitment appropriations is agreed as proposed by the Parliament.

This package respects the ceilings for pilot projects and preparatory actions set out in the Financial Regulation.

1.3. Expenditure headings of the financial framework - commitment appropriations

After taking into account the above conclusions on agencies and pilot projects and preparatory actions, the Conciliation Committee has agreed on the following:

Heading 1 - Single Market, Innovation and Digital

Commitment appropriations are set at the level proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2024 but with the following adjustments, agreed by the Conciliation Committee, set out in the table below:

As a consequence, the agreed level of commitment appropriations is set at EUR21 493,4 million, leaving a margin of EUR 104,6 million under the expenditure ceiling of heading 1.

Sub-heading 2a - Economic, social and territorial Cohesion

Commitment appropriations are set at the level proposed by the Commission in the Draft Budget without any adjustments. As a consequence, the agreed level of commitment appropriations is set at EUR 64 665,2 million, leaving a margin of EUR 17,8 million under the expenditure ceiling of sub-heading 2a.

Sub-heading 2b - Resilience and Values

Commitment appropriations are set at the level proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2024 but with the following adjustments, agreed by the Conciliation Committee, set out in the table below:

In a context of higher costs of living, Erasmus+ is reinforced by EUR 60 million, in particular in order to make the programme more accessible for people with fewer opportunities.

As a consequence, the agreed level of commitment appropriations is set at EUR 9 895,5 million, with no margin left under the expenditure ceiling of sub-heading 2b and the mobilisation of the Flexibility Instrument for an amount of EUR 1 289,5 million in accordance with Article 12 of the MFF.

Heading 3 - Natural Resources and Environment

Commitment appropriations are set at the level proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2024 but with the following adjustments, agreed by the Conciliation Committee, set out in the table below:

As a consequence, the agreed level of commitment appropriations is set at EUR 57 338,6 million, leaving a margin of EUR 110,4 million under the expenditure ceiling of heading 3.

Heading 4 - Migration and Border Management

Commitment appropriations are set at the level proposed by the Commission in the Draft Budget but with the following adjustments, agreed by the Conciliation Committee, set out in the table below:

As a consequence, the agreed level of commitment appropriations is set at EUR 3 892,7 million, leaving a margin of EUR 127,3 million under the expenditure ceiling of heading 4.

Heading 5 - Security and Defence

Commitment appropriations are set at the level proposed by the Commission in the Draft Budget but with the following adjustments, agreed by the Conciliation Committee, set out in the table below:

As a consequence, the agreed level of commitment appropriations is set at EUR 2 321,2 million, with no margin left under the expenditure ceiling of heading 5 and the mobilisation of the Flexibility Instrument for an amount of EUR 317,2 million in accordance with Article 12 of the MFF Regulation.

Heading 6 - Neighbourhood and the World

Commitment appropriations are set at the level proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2024 but with the following adjustments, agreed by the Conciliation Committee, set out in the table below:

As a consequence, the agreed level of commitment appropriations is set at EUR 16 230,0 million, with no margin left under the expenditure ceiling of heading 6 and the mobilisation of the Flexibility Instrument for an amount of EUR 28,9 million in accordance with Article 12 of the MFF Regulation and the mobilisation of the Single Margin Instrument for an amount of EUR 371,1 million in accordance with Article 11(1)(a) of the MFF Regulation.

Heading 7 - European Public Administration

The number of posts in the establishment plans of the institutions and the appropriations proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2024 are agreed by the Conciliation Committee with the following exceptions: the sections of the European Parliament, the European Council, the Commission, the Court of Justice, the European Court of Auditors and the European Data Protection Supervisor are adjusted to reflect the fact that the expenditure related to Members who receive salaries from the EU budget, which are subject to the indexation, should be classified as salary expenditure and therefore excluded from the Commission guidelines on limiting the increase for non-salary related expenditure to 2%.

The overall adjustment results in an increase of EUR 33,8 million of heading 7.

Amendments introduced by the European Parliament to its own section are reinstated without modifications. Overall, this results in a level of appropriations of EUR 2 383,1 million, which represents an increase of EUR 27 707 693 in comparison with the Draft Budget as amended by Amending Letter 1/2024.

For the other sections concerned, considering the original amounts requested on the non-salary lines, the details by budget lines are set out below while respecting the 2% guidelines:

Section 2 - European Council and Council

Section 3 - European Commission

Section 4 - Court of Justice

Section 5 - European Court of Auditors

Section 9 - European Data Protection Supervisor

The table for the European Data Protection Supervisor also includes a technical correction to incorporate previous adjustments agreed in both Amending Budgets 1/2023 and 3/2023 with impact on the reference amount used to calculate needs for 2024, in line with the applied methodology.

As a consequence, the agreed level of commitment appropriations is set at EUR 11 988,0 million, with no margin left under the expenditure the ceiling of heading 7 and the mobilisation of the Single Margin Instrument for an amount of EUR 215,0 million in accordance with Article 11(1)(a) of the MFF Regulation.

Thematic special instruments: EGF, SEAR and BAR

Commitment appropriations for the European Globalisation Adjustment Fund for Displaced Workers (EGF), the Solidarity and Emergency Aid Reserve (SEAR) and the Brexit Adjustment Reserve (BAR) are set at the level proposed by the Commission in the Draft Budget.

1.4. Payment appropriations

The overall level of payment appropriationsin the 2024 budget is set at the level of the Draft Budget, as amended by Amending Letter 1/2024 with the following adjustments agreed by the Conciliation Committee:

1. The agreed level of commitment appropriations for non-differentiated expenditure (headings 1 to 6), for which the level of payment appropriations is equal to the level of commitment appropriations, is taken into account. This applies to the reduction of the financing cost of the European Recovery Instrument (EURI) by EUR 456,0 million and the overall reduction for the EAGF by EUR 84,8 million. Taking into account also the adjustment to the Union contribution to decentralised agencies, the combined effect is a decrease of EUR 550,8 million;

2. The adjustment under heading 7 resulting in an increase of EUR 33,8 million;

3. The payment appropriations for all newpilot projects and preparatory actions proposed by the Parliament are set at 25% of the corresponding commitment appropriations, or at the level proposed by Parliament, if lower. In the case of extension of existing pilot projects and preparatory actions, the level of payment appropriations is the level defined in the Draft Budget as amended by the Amending letter 1/2024 plus 25% of the corresponding new commitment appropriations, or at the level proposed by Parliament, if lower. The combined effect is an increase of EUR 26,8 million;

4. The adjustments to differentiated expenditure budget lines, for which the combined effect is an increase of EUR 134,5 million.

The adjustments, resulting in an overall decrease of EUR355,7 million, are set out in the following table:

Overall, this results in a level of payment appropriations of EUR 142 630,3 million, which represents a decrease of EUR 355,7 million in comparison with the Draft Budget, as amended by Amending Letter 1/2024.

1.5. Reserves

There are no reserves in addition to those of the Draft Budget, as amended by Amending Letter 1/2024.

1.6. Budget remarks

The text of budget remarks corresponds to the Draft Budget, as amended by Amending Letter 1/2024 with the following adjustments proposed in the letter of executability and agreed by the Conciliation Committee:

• The following budget lines for which amendments have been introduced by the European Parliament to its own section are approved without modifications:

- Item 1 4 0 0 - Other staff - Secretariat and political groups

Amend text as follows:

This appropriation includes an envelope of EUR 362 040 167 040 related to the staff of the Authority for European political parties and European political foundations

- Article 2 3 8 - Other administrative expenditure

Amend text as follows:

- miscellaneous purchases in connection with Parliament's corporate social responsibility (including EMAS),EMAS).

- miscellaneous services in connection with Parliament's financial and inventory management.

- Article 2 3 9 - EMAS activities, including promotion, and the European Parliament's carbon offsetting scheme

Amend heading as follows:

EMAS and sustainabilityactivities, including promotion, and the European Parliament's carbon offsetting scheme

Amend text as follows:

This appropriation is intended to cover expenditure related to EMAS activities aiming at promoting sustainability activitiesin the European Parliament and EMAS activities aimed atimproving the European Parliament's environmental performance of the European Parliament,performance,including thepromotion of these activities, and to the European Parliament's carbon offsetting scheme.

This is with the understanding that amendments introduced by the European Parliament or the Council cannot modify or extend the scope of an existing legal base, or impinge on the administrative autonomy of the institutions, and that the action can be covered by available resources.

1.7. Budget nomenclature

The budget nomenclature proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2024, is agreed, with the inclusion of the newpilot projects and preparatory actions. The Conciliation Committee also agrees on the deletion of one budget line in the section of the European Parliament (Article 5 0 2 - Authority for European Political Parties and European Political Foundations - Remunerations and allowances).

2. Budget 2023

Draft Amending Budget (DAB) 4/2023 is approved as proposed by the Commission.

3. Statements

3.1. Joint statement by the European Parliament and the Council on payment appropriations

The European Parliament and the Council call on the Commission to continue closely and actively monitoring during the year 2024 the implementation of the programmes of the current and previous MFFs (particularly in sub-heading 2a and Rural Development). To that end, the European Parliament and the Council invite the Commission to present, in a timely manner, updated figures concerning the state of affairs and estimates regarding 2024 payment appropriations (taking into account the improved forecasts accuracy of the Member States where applicable). If the figures show that the appropriations entered in the 2024 budget are insufficient to cover the needs, the European Parliament and the Council invite the Commission to present as soon as possible an appropriate solution, inter alia a draft amending budget, with a view to allowing the European Parliament and the Council to take any necessary decisions as soon as possible without undue delay for justified needs. Where applicable, the European Parliament and the Council will take into account the urgency of the matter, shortening the eight-week period for a decision if deemed necessary. The same applies mutatis mutandis if the figures show that the appropriations entered in the 2024 budget are higher than needed.

3.2. Joint statement by the European Parliament, the Council and the Commission on integrating the outcome of the MFF mid-term revision in the 2024 budget

The European Parliament, the Council and the Commission take note of the ongoing discussions on the proposed revision of the Multiannual Financial Framework 2021-2027. The Council has been invited by the European Council to take work forward, with a view to reaching an overall agreement on the proposed revised MFF by the end of the year, thereby enabling swift adoption having due regard to the role of the European Parliament in accordance with the procedures laid down in the Treaties. Therefore, the impact of such agreement for the financial year 2024 can only be introduced via a draft amending budget.

The European Parliament and the Council therefore invite the Commission to propose a Draft Amending Budget immediately as soon as the revision of the MFF Regulation is agreed with a view to aligning the 2024 budget to a revised MFF Regulation.

The European Parliament and the Council commit to consider the proposal of the Commission without undue delay, taking into account the urgency of the matter.

3.3. Unilateral statement of the Commission on the MFA+ interest rate subsidy for the financial year 2024

The Commission undertakes to propose the appropriate budgetary measures for freeing the resources allocated for the MFA+ interest rate subsidy (budget Article 14 07 01) for the financial year 2024, should an alternative financing solution be found in due time.

3.4. Unilateral statement of the European Parliament on the MFA+ interest rate subsidy

The European Parliament takes note of the Commission statement. The European Parliament recalls that, under Regulation 2022/2463, the interest rate subsidy in relation to MFA+ for Ukraine should be financed from voluntary contribution from the Member States and that the EU budget may contribute subject to available resources. In that context, the European Parliament stresses that the provisional entry of appropriations on budget line 14 07 01 is a one-off exception and does not constitute a precedent for future budgetary procedures.

ANNEX: LIST OF ENTITIES OR PERSONSFROM WHOM THE RAPPORTEURS HAVE RECEIVED INPUT

The following list is drawn up under the exclusive responsibility of the rapporteurs. The rapporteurs have received input from the following entities or persons in the preparation of the report:

PROCEDURE - COMMITTEE RESPONSIBLE