Common use of Contingency Margin Clause in Contracts

Contingency Margin. A contingency margin of up to 0.03% of the Gross National Income of the Union shall be constituted outside the ceilings of the financial framework as a last resort instrument to react to unforeseen circumstances. Recourse to the Contingency Margin shall not exceed, at any given year, the maximum amount foreseen in paragraph (1)(c) of Article 4 of the MFF Regulation and shall be consistent with the own resources ceiling. The mobilisation of the contingency margin, or part thereof, shall be proposed by the Commission after a thorough analysis of all other financial possibilities. The Commission shall accompany the proposal for the mobilisation of the Contingency Margin by a proposal for reallocation, by a significant amount as far as supported by the analysis, within the existing budget. The decision to mobilise the Contingency Margin shall be taken jointly by the two arms of the budgetary authority. The Council shall act by a qualified majority and the European Parliament shall act by a majority of its component members and three fifths of the votes cast.