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The Council today reached a political agreement on draft amending budget no 2 for 2013, on the basis of a proposal from the Irish presidency (9359/13).
Draft amending budget no 2 for 2013 is about meeting outstanding payment needs in the 2013 EU budget. The Council today agreed to provide EUR 7.3 billion in a first stage and to focus this amount on measures to support economic growth, create jobs and tackle unemployment, especially amount youth people.
The Council also adopted a statement (see annex) confirming its willingness to take all necessary additional steps to ensure that the EU's obligations are honoured in a second phase, when the Commission will have more information on implementation, the possibilities for redeployment and on budget revenues.
In a second statement (see annex below) the Council stressed the political nature of the agreement and declared to formally adopt its position on this draft amending budget at a later stage in parallel with the conclusion of the talks on the EU's multiannual financial framework (MFF) for 2014-2020. Ministers stressed that nothing is agreed until everything is agreed.
The 2013 EU budget, as agreed by the Council and the European Parliament at the end of last year, amounts to €132.8 billion in payments and €150.9 billion in commitments.
Annex
Council statements:
"The Council reaffirms that the EU budget is important for delivering growth and jobs across the Union. However, the Council is also mindful of the pressures that exist on national budgets and the fiscal consolidation efforts being made by Member States. Moreover, the Council recalls that later in the year the Commission will have more information on implementation, the possibilities for redeployment and on budget revenues.
This additional information will mean that the Commission will then be in a better position to more precisely estimate real needs. Therefore the Council is not in a position to agree to the full level of payment appropriations requested by the Commission in draft amending budget )o 2/2013 at this stage.
The Council agrees to provide €7.3 billion, an amount lower than the €11.2 billion proposed by the Commission, which according to the Commission is the minimum needed in 2013. The Council is accordingly aware that the level of payment appropriations now agreed upon may not be sufficient for 2013. It will examine carefully the evolution of the budget throughout the year and commits to take all necessary additional steps to ensure that the Union's obligations are honoured. In this context, and recalling the Financial Regulation, the Council urges the Commission to actively manage the EU budget over the rest of 2013 in a prudent way and to continue to try to fund additional needs by redeployment in the first instance. Furthermore the Council asks the Commission to present by mid-October 2013 at the latest updated estimates regarding payment appropriations and, if necessary, to present an additional draft amending budget at that stage. The Council commits to take a position on this draft amending budget as quickly as possible in order to avoid any shortfall in justified payment appropriations."
"The Council, in recognition that the discussions with the European Parliament on the multiannual financial framework are currently progressing in parallel, reaffirms its commitment to promptly conclude these negotiations. On the basis that both the European Parliament and the Council have agreed to the principle that "nothing is agreed until everything is agreed" the Council underlines that the agreement reached today is of a political nature, and that a formal vote on the Council's position on draft amending budget No 2/2013 will take place at a later stage in parallel with the conclusion of the negotiations on the multiannual financial framework."
Video of ECOFIN press conference