Mobilisation of the Contingency Margin in 2017

PURPOSE: to mobilise the contingency margin in 2017.

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

CONTENT: Article 13 of Council Regulation No 1311/2013 laying down the multiannual financial framework for the years 2014-2020 allows for the mobilisation of the Contingency Margin of up to 0.03 % of Gross National Income for the EU-28 to react to unforeseen circumstances as a last resort instrument.

In the technical adjustment of the MFF for 2017, based on Article 6 of the MFF Regulation, the absolute amount of the Contingency Margin for the year 2017 is set at EUR 4 496,8 million.

After having examined all possibilities for financing additional and unforeseen commitment needs, the Commission proposes to mobilise the Contingency Margin for 2017 for an amount of EUR 2 150,6 million so as to complement the commitment appropriations related to expenditure in:

• headings 3 ‘Security and Citizenship’: EUR 2 578 million;
• heading 4 ‘Global Europe’: EUR 9 432 million in current prices.

The Commission carried out an analysis of the possibility to reallocate significant amounts within the existing budget and proposed in this regard to offset the reinforcement of the expenditure ceiling of headings 3 and 4 as follows: 

• 2017: EUR 850 million against the unallocated margin available under the expenditure ceiling of heading 2 Sustainable Growth: Natural Resources and EUR 514.4 million against the unallocated margin available in heading 5 Administration;
• 2018: EUR 570 million against the unallocated margin available in heading 5 Administration;
• 2019: EUR 216.2 million against the unallocated margin available in heading 5 Administration.

This proposal includes an amount of EUR 1 164,4 million for which the Commission had already made a proposal to mobilise the Contingency Margin for heading 3 which accompanied the initial draft budget 2017, and which is now repealed and replaced by the present proposal.

This proposal has been preceded by a Commission proposal to mobilise in full the amount of the Flexibility Instrument available for 2017 (EUR 530 million), also for heading 3.

Margin as the last resort: it is recalled that Article 13(1) of the MFF Regulation defines the Contingency Margin as a last resort instrument to react to unforeseen circumstances.

Given the full mobilisation of the flexibility instrument in the DB 2017 (EUR 530 million), the mobilisation of the Contingency Margin for 2017 at a level of EUR 2 150,6 million is therefore the only available instrument to address the gap between the level of the expenditure ceiling of headings 3 and 4 in 2017 and the additional unforeseen needs estimated for 2017.