1.  The Council underlines that the budgetary procedure for 2020 will be the last of the programming period 2014-2020. In this regard, the budget will play an important role in the delivery of the Union's objectives and priorities under the multiannual financial framework (MFF).

2.  The Council considers that the budget for 2020 should ensure prudent budgeting and leave sufficient margins under the ceilings to deal with unforeseen circumstances. At the same time sufficient resources should be allocated to programmes and actions that contribute most towards achieving Union policies. In addition, the budget should allow commitments already made under the current MFF to be paid in due time, in order to avoid any unpaid claims, in particular in cohesion policy.

3.  The Council considers that budgetary discipline must be maintained at all levels and that the MFF, the Mid-Term Review of the MFF (MTR) and past commitments must be respected. The Council stresses the need to finance all necessary expenditure as far as possible without recourse to funding mechanisms outside the MFF that compromise budgetary principles. As a general rule, no recommitment or extension of decommitment periods should occur.

4.  The Council emphasises the need for predictability of both Member States' contributions to the Union's budget and transfers from the EU budget to Member States, recalling that both over- and under-budgeting pose unwelcome challenges for national budgets. Corrective budgetary tools, such as amending budgets, should be kept to a strict minimum, be presented to the Council as early as possible and be financed primarily by redeployments.

5.  The Council takes note of Chapter 2 of Part Five of the draft Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community, according to which, for the years 2019 and 2020, in accordance with Part Four, the United Kingdom is to contribute to and participate in the implementation of the Union budgets.

6.  The Council urges the Commission to present the draft budget for 2020 as early as possible, in order to allow the Council to analyse it properly.

Key elements of the budget for 2020

7.  The Council reiterates the need for a realistic budget respecting the principles of sound financial management and annuality. When establishing the draft budget for 2020, the Commission should take into account the close relation between commitment and payment levels, the volume of outstanding commitments, the need to respect the MFF ceilings, the absorption capacity, and the acceleration of the implementation of programmes.

8.  As for commitment and payment appropriations, their level should be kept under control and should be based on justified needs. Establishing an adequate level of payment appropriations for the last year of the programming period is of high importance in order to ensure an orderly progression of payment appropriations consistent with the authorised commitment appropriations, thereby pre-empting future accumulation of outstanding bills. When preparing  the ground has advanced.the draft budget, the Commission should take into account the significantly improved forecasts submitted by Member States and that contracting on the ground has advanced.

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