Amending budget 1/2008: EU Solidarity Fund, budgetary structure for the REA and the ERCEA, establishment plan of FRONTEX, Galileo Programme, budget article on Exceptional crisis expenditure

PURPOSE: to present the Draft amending budget No 1/2008 for the financial year 2008 (Section III – Commission).

CONTENT: on 18 January 2008, the Commission sent to the Council a Preliminary draft amending budget No 1/2008 of the European Union for the financial year 2008, which covered the following items:

-the mobilisation of the EU Solidarity Fund for an amount of EUR 162.387.985 in commitment and payment appropriations, relating to major storm damage in the United Kingdom in June and July 2007,

- the creation of  budget line 08 01 04 30 to accommodate the European Research Council Executive Agency (ERCEA),  to which the amount of  EUR 19.994.000 is allocated in commitment and payment appropriations, and the creation of budget line 08 01 04 31 for the Research Executive Agency (REA), given EUR 14.601.000 in commitment and payment appropriations;

-creation of budget line 06 01 04 12 – GALILEO Programme - expenditure on administrative management – to which is allocated a sum of EUR 2 million in commitment and payment appropriations;

-modification of the establishment plan of the European Agency for the Management of the Operational Cooperation at the External Borders of the Members States of the European Union (FRONTEX), with the creation of 25 additional posts;

-creation of the budget article 27 01 11-Exceptional crisis expenditure, to enable the financing of exceptional expenditure linked to a declared crisis. The line will be endowed with a "p.m".

Only the mobilisation of the EU Solidarity Fund will have a net effect on the budget, entailing an increase of EUR 162 387 985 in both commitment and payment appropriations to be covered by fresh funds. The appropriations related to (b) and (c) will be fully covered by means of transfers, whereas the additional appropriations for (d) have already been authorised in the 2008 budget.

At the simplified trilogue provided for in Point 26 of the Interinstitutional Agreement of 17 May 2006 on the financing of the EU Solidarity Fund, an agreement was reached on the mobilisation of the EU Solidarity Fund and on the amount as proposed by the Commission.

Conclusion: on 4 March, the Council established Draft Amending Budget No. 1 for the financial year 2008, as submitted by the Commission in its Preliminary Draft Amending Budget No. 1

and as set out in the technical annex to the amending budget (see Council document 7259/08 ADD 1).