Mobilisation of the Flexibility Instrument: facility for a rapid response to soaring food prices in developing countries

PURPOSE: to mobilise the Flexibility Instrument to finance the facility for a rapid response to soaring food prices in developing countries.

PROPOSED ACT: Decision of the European Parliament and of the Council.

CONTENT: the Interinstitutional Agreement of 17 May 2006 (see ACI/2004/2099)allows for the mobilisation of the Flexibility Instrument to allow the financing of clearly identified expenditure which could not be financed within the limits of the ceilings available for one or more headings of the multiannual financial framework.

For budget 2009, additional expenditure, beyond the ceilings of heading 4 is required. It is therefore proposed to mobilise the Flexibility Instrument in accordance with point 27 of the Interinsitutional Agreement.

The amount of EUR 420 million is to be mobilised to finance the facility for a rapid response to soaring food prices in developing countries (see COD/2008/0149).