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Wednesday 8 DecemberFrom 15.00 to 18.30

Room: 1A002 - Brussels

In the Chair: Alain Lamassoure, Chairman

1. Adoption of agenda

The Draft Agenda was circulated to Members on ? De-cember 2010 and was published on the website the same day.

2. Chairman's announcements

1. Languages available:

FR, DE, IT, NL, EN, DA, ES, PT, SV, CS, HU, LV, PL, SK, BG, RO

2. Webstreaming

Members are informed that this BUDG meeting willbe webstreamed (apart from the part in camera andthe Coordinators' meeting) on the following link: http://www.europarl.europa.eu/wps-europarl-internet/frd/live/live-program?language=en

Please be aware that each time a speaker activates the microphone to make an intervention the camera will be automatically directed to the speaker.

3. Study on the implications of EIB and EBRD

Study on the implications of EIB and EBRD co-financing for the EU budget (responsible members: Jean-Luc Dehaene and Ivailo Kalfin)

The contract for this study has been awarded to the Uni-versity of Leeds, for delivery by end February 2011. A kick-off meeting between the responsible members and the experts took place on 30 November 2010.

Budget 2011

3. Parliament's position on the new 2011 Draft Budget - all sections

Rapporteurs: Sidonia Jędrzejewska and Helga Trüpel

Consideration and adoption of budgetary amendments and of draft report

90 budgetary amendments have been tabled by political groups and individual members, to plenary and to BUDG. The vote will be organised in 3 parts: firstly, vote, by heading and by section, on the amendments with

COBU NEWS

COMMITTEE ONBUDGETS

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the exceptions of reserves; secondly, vote on reserves, by heading and by section; thirdly, if necessary, vote on other amendments forwarded by the Council (tbc).

As regards the resolution accompanying the vote on budgetary amendments, 8 amendments have been tabled.

4. Proposal for a decision of the European Parliament and of the Council on the Mobilisation of the Flexibility

Rapporteur: Reimer Böge

Consideration and adoption of draft report

This report aims at allowing the mobilisation of the Flexibility Instrument in order to finance the reinforce-ment of commitments (by 105 million) for priorities in headings 1a and 4 while remaining within the ceilings of the MFF for 2011. No amendments have been tabled.

Budget 2011

5. Draft amending budget No 10/2010 - Section III

Commission

Rapporteur: László Surján

Consideration and adoption of draft report

Draft amending budget (DAB) n°10/2010 was part of the negotiation package of the Conciliation Committee. After the latter's failure to reach an agreement within the three weeks foreseen by the Treaty, the BUDG Commit-tee confirmed its initial position that the adoption of DAB 10/2010 would be conditional to an agreement on the other elements of the negotiation package.

After its presentation by the Commission on 20 October 2010, DAB No 10/2010 was amended through an amending letter dated 26/11/2010. As is the case every year since 2002, this year-end amending budget decreases the overall level of payment and commitment appropria-tions to better adjust them to the latest estimates of needs. As compared to its initial version (respectively -

EUR 373 and -1.091 million in CA and PA), it now de-creases the latter by - 43 EUR and - 761 million.

The EUR 330 million difference concerns articles 05 02 012 - Milk and milk products (- 280 million) and 05 02 03 - Refunds on non-annex 1 products (-50 million) and, according to the Commission, it is due to financial needs that happen to be finally higher than expected when the DAB was presented, as well as to the possible carry over of assigned revenue for the corresponding amount. In this respect, less fresh appropriations will be needed in 2011, what will increase the margin under Heading 2 ceil-ing in 2011, for a possible redeployment for the financing of ITER.

Overall, the amended DAB 10/2010 proposes overall decreases in 2010 budget payments which now mainly concern Headings 2 (- EUR 406 million), 4 (- EUR 232,54 million) and 1a (- EUR 34 million). It conse-quently adjusts the level of own resources, also following the increase in revenue stemming from fines.

In addition to its impact on the possible provisional twelfths (in the unlikely case where DAB 10 would be adopted without any agreement on 2011 Budget), this AB could be considered in the context of the debates that took place in BUDG during the first semester 2010 on the budgetisation of 2009 surplus (DAB 4/2010).

As suggested by the Commission, this amending budget may also contribute to the creation of 2010 margins to complete the financing of the EUR 1.3 billion (new re-vised figures) for ITER through a compensation mecha-nisms/revision of the MFF, which would increase the expenditure ceiling of Heading 1a in 2012 and 2013 and decrease 2010 ceilings. This would come in addition to the initial 460 million redeployment foreseen within Heading 1a (see also Commission's non paper on ITER). For the moment, the Council has not taken any formal position on such a revision. In this regard, see also point 9 of the agenda.

The draft report by Rapporteur was circulated to mem-bers on 2 December and one amendment has been ta-bled.

Calendar :

Deadline for amendments: 3 December, 12.00Vote in COBU: 8 DecemberVote in Plenary: December

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Lisbon package: MFF, IIA and Financial Regulation

6. Multiannual financial framework for the years 2007-2013

7. The Interinstitutional Agreement on cooperation in budgetary matters

Rapporteur: Reimer Böge

After lengthy negotiations, EP and Council's delegations agreed provisionally on a draft joint declaration stating a political compromise on how the mechanism of flexibility should be integrated in the next MFF regulation and on the next IIA on budgetary cooperation. This provisional agreement does not harm the normal continuation of the current legislative procedures. A motion for a resolution suggesting the adoption of this political agreement will be submitted by the rapporteur.

8. Amendment of Council Regula-tion on the Financial Regulation applicable to the general budget of the European Communities

Rapporteurs: - Ingeborg Gräßle (BUDG) - Crescenzio Rivellini (CONT)

The debate on this point will be postponed as no new developments have meanwhile taken place

9. Amendment of the Interinstitu-tional Agreement of 17 May 2006 on budgetary discipline and sound financial management as regards the multiannual financial framework, to address additional financing needs of the ITER pro-ject

Rapporteur: Reimer Böge

On 20 July, the Commission adopted the proposal COM(2010)403 for a decision of the European Parlia-

ment and of the Council addressing additional financing needs of the ITER project for an amount of EUR 1.4 billion (EUR 800 Mio in 2012 and EUR 600 Mio in 2013). Since the margins in heading 1a of the current MFF are too low to allow for the funding of that extra cost, the proposal provided for a revision of the IIA and the MFF.

According to a non-paper presented by the Commission on 26 November after a discussion in COREPER, the outstanding gap is now only EUR 1.3 billion (EUR 750 million in 2012 and EUR 550 million in 2013). This would translate into an increase of the ceilings of heading 1A of EUR 650 million in 2012 and EUR 190 million in 2013 and corresponding decreases in 2010 and 2011.

By using available unallocated margins, including those created by the proposed Amending Budget 10/2010 and the related letter of amendment, and the new Draft Budget 2011, the Commission proposes to envisage the financing of ITER, through a compensation mecha-nisms/ revision of the MFF, as follows: EUR 840 million through a revision of the MFF ceilings (increases to heading 1a in 2012 and 2013 to be offset by a increases in headings 1a, 2, 3a, and 5 in 2010 and heading 2 in 2011 by the same combined amount) and EUR 460 million through redeployment within heading 1a (cuts in the Sev-enth Research Framework programme).

In past meetings BUDG Committee expressed reserva-tions on the redeployment proposal.

Regarding the legal basis, the Commission proposed to base this decision on the current IIA and Council is sup-posed to accept this (with the perspective of integrating this amendment in the MFF regulation to be adopted in 2011).

The rapporteur will present a draft report suggesting the adoption of this modified proposal of the Commission.

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10. Budget 2010 : Section III - Commission

Rapporteur: László Surján

Consideration and possibly adoption of transfers requests :

- DEC 60, 63, 65 and 66/2010- Other possible transfer requests

11. Budget 2010: Other Sections

Rapporteur: Vladimír Maňka

Transfer request C13 - European Parliament - Sofiaoffice

This transfer request, in short, asks for the non-automatic carry-over of 2010 funds to be authorised. A decision on the actual consultation could then be taken in due time whilst having a possible source of financing available un-til 31 March 2011 (final deadline to commit funds carried over). The building consultation under Article 179 is be-ing prepared in parallel (included on the agenda for first exchange of views below).

N.B. The chairman received a letter with a technical cor-rection of the global amount for C 13 which should be EUR 9.24 Mio instead of EUR 9.9 Mio.

Transfer request CoR - INF 6/2010 (tbc) Transfer request ESC - DEC 3/2010 (tbc) Any Other transfer requests

12. Building policy

Rapporteur : Monika Hohlmeier

Art. 179(3) consultations for :

EEAS

In light of the latest information received, an exchange of views might take place. The 'opinion' and final vote is nor-mally foreseen for the 1st committee meeting in January 2011.

ACER ( Agency for Cooperation of Energy Regulators)

Occupation by ACER of temporary premises in Ljubljana,provided by the Government of the Republic of Slovenia

A vote is foreseen today.

SOFIA , EP office (for exchange of views, formal consulta-tion not yet received)

Preparatory work concerning a consultation for the EP office in Sofia is under way. A referral to the COBU could be fore-seen in the near future.

In parallel, a transfer request C13 on the possible financing for such a purpose was received from the EP President (see transfer item above). A decision on this consultation could then be taken in due time whilst having a possible source of financing available until 31 March 2011 (final deadline to commit funds carried over).

13. Any other business

14. Date of next meeting :

- 26 January 2011, 9.00 - 12.30 and 15.00 - 18.30 (Brussels)- 27 January 2011, 9.00 - 12.30 (Brussels)

15. Coordinators meetings

- 26 January 2011, 18.30 - 19.30

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Annex to Point 10 - Transfers Section III

European CommissionConsideration of transfer request DEC 63

FROM

CHAPTER - 0502 Interventions in agricultural markets ARTICLE - 05 02 03 Refunds on non-Annex 1 products Non-Diff. - 62 000 000

ITEM - 05 02 12 01 Refunds for milk and milk products Non-Diff. - 260 000 000

ITEM - 05 02 12 04 Intervention storage of butter and cream Non-Diff. - 88 000 000

CHAPTER - 0504 Rural development ITEM - 05 04 01 14 Rural development financed by the EAGGF Guarantee Section - Programming period 2000 to 2006 Non-Diff. - 6 600 000TO

CHAPTER - 0503 Direct aids ITEM - 05 03 01 01 SPS (single payment scheme) Non-Diff. 158 400 000

CHAPTER - 0507 Audit of agricultural expenditure ITEM - 05 07 01 06 Accounting clearance of previous years' accounts with regard to shared management expenditure under the EAGGF Guarantee Section (previous measures) and under the EAGF Non-Diff. 256 000 000

ITEM - 05 07 01 07 Conformity clearance of previous years' accounts with regard to shared management expenditure under the EAGGF Guarantee Section (previous measures) and under the EAGF Non-Diff. 2 200 000

Deadline : 07.01.2011For the justifications provided, please see transfer request in the file.------------------------------------------------------------------------------------------European CommissionConsideration of transfer request DEC 65

FROM

CHAPTER - 40 02 RESERVES FOR FINANCIAL INTERVENTIONS ARTICLE 40 02 41 - 19 09 03 Cooperation activities other than Official Development Assistance (Latin America) Commitments - 11 500 000

ARTICLE 40 02 41 - 19 10 04 Cooperation activities other than Official Development Assistance (Asia, Central Asia, Iraq, Iran and Yemen) Commitments - 23 000 000

TO

CHAPTER - 2302 Humanitarian aid including aid to uprooted people, food aid and disaster preparedness ARTICLE - 23 02 01 Humanitarian aid Commitments 34 500 000

Deadline : For the justifications provided, please see transfer request in the file.

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European CommissionConsideration of transfer request DEC 66

CHAPTER - 2002 Trade policy ARTICLE - 20 02 01 External trade relations, including access to the markets of non-Community countries Commitments - 1 000 000

Payments 0 ARTICLE - 20 02 03 Aid for trade - Multilateral initiatives Commitments - 600 000

Payments 0CHAPTER - 2102 Food security ARTICLE - 21 02 01 Food security Commitments - 1 000 000

Payments 0 ARTICLE - 21 02 03 Facility for rapid response to soaring food prices in developing countries Commitments - 17 400 000

Payments 0CHAPTER - 2105 Human and social development ITEM - 21 05 01 01 Health Commitments - 1 000 000

Payments 0 ITEM - 21 05 01 06 Preparatory action - Pharmaceutical-related transfer of technology in favour of developing countries Commitments - 3 300 000

Payments 0CHAPTER - 2106 Geographical cooperation with African, Caribbean and Pacific (ACP) States ARTICLE - 21 06 03 Adjustment support for sugar protocol countries Commitments - 24 325 000

Payments 0CHAPTER - 2107 Development cooperation actions and ad hoc programmes ARTICLE - 21 07 04 Commodities Agreements Commitments - 1 800 000

Payments 0CHAPTER - 2201 Administrative expenditure of Enlargement policy area ITEM - 22 01 04 01 Pre-accession assistance - Expenditure on administrative management Non-Diff. - 1 500 000

TO

CHAPTER - 1904 European Instrument for Democracy and Human Rights (EIDHR) ARTICLE - 19 04 01 European Instrument for Democracy and Human Rights (EIDHR) Commitments 29 265 000

Payments 0CHAPTER - 1908 European Neighbourhood Policy and relations with Russia ITEM - 19 08 01 01 European Neighbourhood and Partnership financial cooperation with Mediterranean countries Commitments 40 000 000

Payments 1 500 000

For the justifications provided, please see transfer request in the file.

FROM

CHAPTER - 0103 International economic and financial affairs ARTICLE - 01 03 02 Macro -economic assistance Commitments - 8 800 000

Payments 0CHAPTER - 0506 International aspec ts of Agriculture and rural development policy area ARTICLE - 05 06 01 International agricultural agreements Commitments - 1 040 000

Payments 0CHAPTER - 0702 Global environmental affairs ARTICLE - 07 02 01 Contribution to multilateral and inter national environmental activities Commitments - 500 000

Payments 0 ARTICLE - 07 02 04 Preparatory Action - Environmental monitoring of the Black Sea Basin and a Common European framework programme for development of the Black Sea region Commitments - 1 500 000

Payments 0CHAPTER - 1906 Crisis response and global threats to security ARTICLE - 19 06 08 Emergency response to the financial and economic crisis in developing countries Commitments - 2 500 000

Payments 0CHAPTER - 1909 Relations with Latin America ARTICLE - 19 09 01 Cooperation with developing countries in Latin America Commitments - 1 000 000

Payments 0CHAPTER - 1910 Relations with Asia, Central Asia and Middle East (Iraq, Iran, Yemen) ITEM - 19 10 01 01 Cooperation with d eveloping countries in Asia Commitments - 2 000 000

Payments 0

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Annex to Point 11 - Transfers Other Sections

Parliament - Section IConsideration of transfer request C 13/2010

FROM

Transfers from various lines ("mopping-up") 2010- for details see transfer request -9.900.000 EUR

TO

Item 2003 Acquisition of immovable property + 9.900.000 EUR

This request deals with the proposed financing for a purchase of the EP office in Sofia and, to this end, would allow for a carry-over of funds to 2011. For further justifications, please see the transfer request in the file.

In the meantime, a parallel consultation under Article 179 of the Financial Regulation (building policy) is being prepared

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The Committee of the RegionsConsideration of transfer request CoR INF 6/2010

FROM

Item 1400 Other staffItem 1404 Graduate traineeships, grants and exchanges of officialsItem 1408 Entitlements in connection with entering the service, transfer and leaving the serviceItem 1422 Expert advice connected with consultative workItem 1610 Miscellaneous expenditure on recruitmentItem 1630 Social welfareItem 1638 Early Childhood Centre and approved day nurseriesItem 230 Stationery, office supplies and miscellaneous consumablesItem 238 Other administrative expenditure

TOTAL

-40.000 EUR-40.000 EUR-28.599 EUR

-79.257 EUR-11.250 EUR-22.000 EUR-1.894 EUR

-18.000 EUR-9.000 EUR

-250.000 EURTO

Item 1200 Remuneration and allowances+250.000 EUR

Deadline: 27.12. 2010

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The European Economic and Social CommitteeConsideration of transfer request EESC DEC 3/2010

FROM

Item 1400 Other staffItem 1404 Graduate traineeships, grants and exchanges of officialsItem 1408 Entitlements in connection with entering the service, transfer and leaving the serviceItem 1610 Expenditure on recruitmentItem 1612 Further trainingItem 1634 Medical serviceItem 1638 Early Childhood Centre and approved day nurseriesItem 2000 RentItem 2001 Annual lease payments and similar expenditureItem 2600 CommunicationItem 2602 Publishing and promotion of publicationsItem 2604 Official journalItem 2622 Documentation and libraryArticle 162 Mission expensesArticle 231 Financial charges

TOTAL

-20.000 EUR-20.000 EUR-4.000 EUR

-49.000 EUR-8.000 EUR-7.000 EUR

-90.000 EUR-40.000 EUR-47.000 EUR-30.000 EUR-40.000 EUR

-150.000 EUR-11.000 EUR-60.000 EUR-10.000 EUR

-586.000 EURTO

Item 1200 Remunerations and allowances+ 586.000 EUR