The Commission proposed on 28 July to amend the 2017 EU budget to provision with EUR 275 million the European Fund for Sustainable Development (EFSD) Guarantee Fund, the first pillar of the EU's European External Investment Plan.
The European External Investment Plan aims to encourage investment in our partner countries in Africa and the EU Neighborhood region in order to promote inclusive growth, job creation and sustainable development and so tackle some of the root causes of migration. Following the same logic as the successful ‘Juncker Plan’ – which has already triggered €209 billion of investment by using of public funding as a guarantee to attract public and private investment – the External Investment Plan was adapted to the specific needs of the EU's partner countries.
Given the absence of a commitment margin in the 2017 budget under the specific heading for this type of expenditure, and taking into account the redeployments already made in the adopted budget 2017, the Commission proposes to mobilize the so called Flexibility Instrument to cover the financing of this amount. This instrument allows the financing of clearly identified expenditure which could otherwise not be financed within the limits of the agreed specific ceilings of the EU's current multi-annual financial framework. This amount was not taken into account at the time of the adoption of the 2017 budget as the European Parliament and the Council agreed to first wait for the adoption of the legal basis for the Fund, which is expected in the coming weeks.
This proposed amendment to the 2017 budget would also increase the annual amount of the Emergency Aid Reserve, from EUR 280 million to EUR 300 million in 2011 prices, as agreed in the mid-term revision of the EU's current multi-annual financial framework adopted in April 2017.
The European Commission can propose changes to the annual EU budget adopted by the European Parliament and the Council. The proposal of the European Commission to amend the annual EU budget enters into force once approved by the European Parliament and the Council.
A draft amending budget (DAB) is a proposal to amend the adopted budget. By definition, any budget (be it of the EU, a Member State, a private company or a household) bases itself on forecasts and estimates of expenditures and revenues. Therefore, budgets may be amended to take into account actual expenditures and revenues. Some amending budgets, such as the one relating to the positive balance from the previous year, are presented regularly each year.
The number of DABs presented by the Commission varies from one year to another. This current amendment is the fifth DAB for 2017.