Amending letter No 1/2021

Amending Letter No 1 (AL 1/2021) to the draft budget for the year 2021 (DB 2021) covers the following elements:

• The incorporation of the agreement reached between the European Parliament and the Council on the next Multiannual Financial Framework 2021-2027 (“MFF”) in the trilogue on 10 November. This outcome builds on the agreement reached during the Special European Council (EUCO) of 17-21 July^[1] and impacts a number of spending programmes and special instruments in terms of level of appropriations, structure of headings and nomenclature as well as the content of budget remarks (in particular as regards the contribution of the plan for European Recovery, “Next Generation EU”).
• The updating of the estimated needs, assigned revenue and appropriations for agricultural expenditure. In addition to changing market factors, AL 1/2021 also incorporates the impact of decisions in the agricultural sector since the DB 2021 was adopted in July 2020, as well as other proposals expected to have a significant effect during the budget year;
• Adjustments resulting from the upcoming submission to the Committee on Executive Agencies^[2] for opinion, and to the Council and European Parliament for a six week scrutiny, of the proposal of a single establishment act setting out the major components of the mandate and tasks entrusted to the new generation of executive agencies as from 2021. These adjustments, in terms of nomenclature, appropriations and establishment plans, are still based on the agreement reached during the Special European Council (EUCO) of 17-21 July and will be further updated to reflect the political agreement on the next MFF once the single establishment act is finalised;
• Adjustments to the level of appropriations and/or staff of some decentralised agencies (EMA, ECDC, ECHA, EEA, EBA and EASO) taking into account the latest legislative or political developments on their operations for 2021 and in particular the impact of the proposed “Health Package” tabled by the Commission on 11 November;
• Adjustments to the heading 7 “European Public Administration”, including the impact of the reduction of the salary update rate as of 1 July 2020 used for the DB 2021 from 0,9 % to 0,7 % and the reinforcement of the European External Action Service (EEAS) for the governance of the off-budget European Peace Facility (EPF) as well as strengthening the consular services); and
• Other adjustments and technical updates, including to the structure of the budget (nomenclature).

Overall, the net impact of AL 1/2021 on expenditure in the DB 2021 is a decrease of EUR 2 608,8 million in commitment appropriations and an increase of EUR 2 609,3 million in payment appropriations

[1] EUCO 10/20, 21.7.2020.

[2] Council Regulation (EC) No 58/2003 of 19 December 2002 laying down the statute for executive agencies to be entrusted with certain tasks in the management of Community programmes (OJ L 11, 16.1.2003, p. 1).