Financial framework 2007-2013: European Economic Recovery Plan (amend. Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management)

PURPOSE: to amend the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management as regards the multiannual financial framework (2007 to 2013) in order to take account of the European Economic Recovery Plan.

LEGISLATIVE ACT: Decision 2009/407/EC of the European Parliament and of the Council amending the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management as regards the multiannual financial framework (2007-2013).

CONTENT: the Council and the European Parliament adopted a decision adjusting the EU's multiannual financial framework via an amendment to the agreement between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (IIA). This adjustment aims to finance the European Economic Recovery Plan which is proposed as a reaction to the serious ongoing economic downturn.

At the trilogue meeting of 2 April 2009, the Parliament, the Council and the Commission agreed on the financing, in the framework of the European Economic Recovery Plan for modernisation of infrastructures and energy solidarity, of projects in the field of energy and broadband Internet, as well as for strengthening operations related to the ‘new challenges’ defined in the context of the assessment of the 2003 mid-term reform of the common agricultural policy (Health Check).

The financing requires, as a first step, a revision of the multiannual financial framework 2007-2013 in accordance with points 21, 22, and 23 of the Interinstitutional Agreement, so as to raise the ceiling for the year 2009 for commitment appropriations under subheading 1a by an amount of EUR 2 000 000 000 in current prices. Thus, increase of the ceiling for subheading 1a will be fully offset by decreasing the ceiling for commitment appropriations under heading 2 for the year 2009 by the same amount.

In order to keep an appropriate relationship between commitments and payments, the annual ceilings for payment appropriations will be adjusted. The adjustment will be neutral.

Annex I to the IIA is therefore amended accordingly.