# IMMC.COM_2018_0704_FIN.ENG.xhtml.1_EN_ACT_part1_v2.docx

european flagEUROPEAN COMMISSION

Brussels, 12.10.2018

COM(2018) 704 final

DRAFT AMENDING BUDGET No 6TO THE GENERAL BUDGET 2018

Reduction of payment and commitment appropriations in line with updated forecasts of expenditure and update of revenue (own resources)

Having regard to:

–the Treaty on the Functioning of the European Union, and in particular Article 314 thereof, in conjunction with the Treaty establishing the European Atomic Energy Community, and in particular Article 106a thereof,

–Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union (...)
  1
  , and in particular Article 44 thereof,

–the general budget of the European Union for the financial year 2018, as adopted on 30 November 2017
  2
  ,

–the amending budget No°1/2018
  3
  , adopted on 30 May 2018,

–the amending budget No°2/2018
  4
  , adopted on 4 July 2018,

–the amending budget No 3/2018
  5
  , adopted on 4 July 2018,

–the amending budget No 4/2018
  6
  , adopted on 11 September 2018,

–the amending budget No 5/2018
  7
  adopted on [3 October 2018].

The European Commission hereby presents draft amending budget No 6 to the general budget 2018 to the European Parliament and to the Council.

CHANGES TO THE STATEMENT OF REVENUE AND EXPENDITURE BY SECTION

The changes to the statement of revenue and expenditure by section are available on EUR-Lex (

  http://eur-lex.europa.eu/budget/www/index-en.htm

  ). An English version of the changes to this statement is attached for information as a budgetary annex.

TABLE OF CONTENTS

1.
     Introduction

2.
     Decrease of payment and commitment appropriations

2.1Sustainable Fisheries Agreements

2.2Decentralised agency – European Chemicals Agency (ECHA)

2.3European Agricultural Guarantee Fund (EAGF)

2.4European Agricultural Fund for Rural Development (EAFRD)

3.
     Update of revenue

3.1Overall impact of DAB 6/2018 on the distribution of total own resources payments between Member States

3.2Revision of the forecast of TOR, VAT and GNI bases

3.32017 and 2014 UK correction

4.
     Summary table by MFF heading

1.Introduction

The purpose of Draft Amending Budget (DAB) No 6 for the year 2018 is to update both the expenditure and the revenue sides of the budget to take account of the latest developments:

–on the expenditure side, to release commitment and payment appropriations of budget lines for headings 1a "Competitiveness for growth and jobs" and 2 "Sustainable growth – natural resources";

–on the revenue side, to revise the forecast of Traditional Own Resources (i.e. customs duties and sugar sector levies), value-added tax (VAT) and gross national income (GNI) bases, and to budget the relevant UK corrections and their financing, which all affect the distribution of own resources contributions from Member States to the EU budget.

2.
     Decrease of payment and commitment appropriations

The Commission proposes to adjust the level of payment appropriations for certain budget lines in order to align them more closely to the latest estimates of needs and working on the assumption that the rebalancing of payment appropriations between budget lines requested separately by the Commission in the so-called "global transfer" (DEC 22/2018) will be accepted by the European Parliament and the Council.

The reduction in the level of commitment and payment appropriations requested in this DAB (EUR 48,7 million and EUR 44,7 million, respectively) only concerns headings 1a and 2.

In the budget 2018, no margin remains available under heading 1a and the Global Margin for Commitments (GMC) is used for an amount of EUR 762,5 million. As a result of the reduction in commitment appropriations proposed in this DAB on this heading (see section 2.2 below), the amount of GMC used is reduced accordingly to reach EUR 760,6 million.

2.1
     Sustainable Fisheries Agreements

On the basis of an updated analysis of the state of play of the negotiations for Sustainable Fisheries Partnership Agreements, EUR 46,6 million in commitment appropriations and EUR 43,3 million in payment appropriations may be released from the reserve line (budget article 40 02 41).

| EUR |
| --- |
| Budget line | Name | Commitment appropriations | Payment appropriations |
| 40 02 41 | Differentiated appropriations (Reserve for budget article 11 03 01 – Establishing a governance framework for fishing activities carried out by Union fishing vessels in third country waters) | -46 565 000 | -43 302 703 |
| Total | -46 565 000 | -43 302 703 |

EUR

Budget line

Name

Commitment appropriations

Payment appropriations

40 02 41

Differentiated appropriations (Reserve for budget article 11 03 01 – Establishing a governance framework for fishing activities carried out by Union fishing vessels in third country waters)

-46 565 000

-43 302 703

Total

-46 565 000

-43 302 703

2.2
     Decentralised agency – European Chemicals Agency (ECHA)

The European Chemicals Agency (ECHA) in Helsinki carries out two types of fee-financed activities, related to Chemicals legislation under heading 1a and Biocides legislation under heading 2. Fee income actually received for these two activities in the course of 2018 has evolved in opposite directions: while fee income is above forecast in heading 1a, linked to substantial fees received by the registration deadline of May 2018, there is a significant drop in the number of applications for Union authorisations of biocidal products. The resulting shortfall in fee income in heading 2 is partly met by cost savings related to biocides activities. Nonetheless, a reinforcement of the EU balancing contribution under heading 2 is necessary, for an amount of EUR 1,9 million in commitment and payment appropriations, which is proposed to be offset by a corresponding reduction of the EU balancing contribution to the agency under heading 1a.

EUR

| EUR |
| --- |
| Budget line | Name | Commitment appropriations | Payment appropriations |
| 02 03 03 | European Chemicals Agency — Chemicals legislation | -1 900 000 | -1 900 000 |
| 17 04 07 | European Chemicals Agency — Activities in the field of biocides legislation | 1 900 000 | 1 900 000 |
| Total | - | - |

Budget line

Name

Commitment appropriations

Payment appropriations

02 03 03

European Chemicals Agency — Chemicals legislation

-1 900 000

-1 900 000

17 04 07

European Chemicals Agency — Activities in the field of biocides legislation

1 900 000

1 900 000

Total

-

-

2.3
     European Agricultural Guarantee Fund (EAGF)

Further to some delays in recruiting IT service providers as well as the cancellation of some audits, it is proposed to decrease the level of commitment and payment appropriations of the budget item 05 01 04 01 and budget article 05 08 09.

| EUR |
| --- |
| Budget line | Name | Commitment appropriations | Payment appropriations |
| 05 01 04 01 | Support expenditure for the European Agricultural Guarantee Fund (EAGF) – Non-operational technical assistance | -400 000 | -400 000 |
| 05 08 09 | European Agricultural Guarantee Fund (EAGF) – Operational technical assistance | -1 000 000 | -1 000 000 |
| Total | -1 400 000 | -1 400 000 |

EUR

Budget line

Name

Commitment appropriations

Payment appropriations

05 01 04 01

Support expenditure for the European Agricultural Guarantee Fund (EAGF) – Non-operational technical assistance

-400 000

-400 000

05 08 09

European Agricultural Guarantee Fund (EAGF) – Operational technical assistance

-1 000 000

-1 000 000

Total

-1 400 000

-1 400 000

2.4
     European Agricultural Fund for Rural Development (EAFRD)

Given the postponements of planned actions/events in relation to the European networks for Rural Development and the European Innovation Partnership, it is proposed to decrease the level of commitment appropriations of the budget item 05 04 60 02.

| EUR |
| --- |
| Budget line | Name | Commitment appropriations | Payment appropriations |
| 05 04 60 02 | Operational technical assistance | -700 000 | - |
| Total | -700 000 | - |

EUR

Budget line

Name

Commitment appropriations

Payment appropriations

05 04 60 02

Operational technical assistance

-700 000

-

Total

-700 000

-

3.
     Update of revenue

3.1
     Overall impact of DAB 6/2018 on the distribution of total own resources payments between Member States

Following the 172nd meeting of the Advisory Committee on Own Resources (ACOR) of 18 May 2018, two adjustments of the revenue side of the budget are required. The first of these adjustments is an update of the estimates for Traditional Own Resources (TOR), as well as of the Value Added Tax (VAT) and Gross National Income (GNI) resources, which are updated to take account of more recent economic forecasts. The second adjustment on the revenue side is an update of the UK correction. These two adjustments are presented in sections 3.2 and 3.3 below.

The overall impact of both the expenditure and the revenue adjustments of this DAB is shown in the summary table below. This table also shows the distribution of total own resources payments between Member States: as budgeted in the 2018 budget, as adjusted in amending budget (AB) 4/2018
  8
  , and finally in the present DAB.

Distribution of total own resources payments by Member States (in million EUR)

Budget 2018

| | Budget 2018 | AB 4/2018 | DAB 6/2018 |
| --- | --- | --- | --- |
| | | | |
| | (1) | (2) | (3) |
| BE | 6 213,5 | 6 201,5 | 5 932,0 |
| BG | 519,3 | 518,0 | 535,3 |
| CZ | 1 787,1 | 1 782,3 | 1 941,3 |
| DK | 2 754,8 | 2 746,6 | 2 735,6 |
| DE | 29 560,3 | 29 468,7 | 29 579,3 |
| EE | 232,3 | 231,7 | 241,5 |
| IE | 2 299,5 | 2 293,0 | 2 401,4 |
| EL | 1 743,0 | 1 737,9 | 1 701,8 |
| ES | 11 870,8 | 11 838,5 | 11 831,1 |
| FR | 21 933,3 | 21 869,0 | 22 182,5 |
| HR | 470,1 | 468,8 | 479,9 |
| IT | 16 586,9 | 16 539,8 | 16 714,2 |
| CY | 182,2 | 181,7 | 195,0 |
| LV | 281,8 | 281,1 | 274,0 |
| LT | 434,1 | 433,0 | 439,4 |
| LU | 363,0 | 361,9 | 363,6 |
| HU | 1,199,6 | 1 196,3 | 1 223,7 |
| MT | 103,6 | 103,3 | 110,6 |
| NL | 7 378,4 | 7 358,6 | 7 331,7 |
| AT | 3 228,2 | 3 218,2 | 3 353,1 |
| PL | 4 645,3 | 4 632,7 | 4 779,7 |
| PT | 1 824,8 | 1 819,6 | 1 865,3 |
| RO | 1 706,0 | 1 701,0 | 1 803,3 |
| SI | 443,9 | 442,8 | 456,8 |
| SK | 813,5 | 811,2 | 829,9 |
| FI | 2 062,3 | 2 056,2 | 2 132,1 |
| SE | 4 042,0 | 4 028,5 | 4 013,0 |
| UK | 18 152,6 | 18 086,7 | 16 916,5 |
| EU | 142 832,3 | 142 408,4 | 142 363,7 |

AB 4/2018

DAB 6/2018

(1)

(2)

(3)

BE

6 213,5

6 201,5

5 932,0

BG

519,3

518,0

535,3

CZ

1 787,1

1 782,3

1 941,3

DK

2 754,8

2 746,6

2 735,6

DE

29 560,3

29 468,7

29 579,3

EE

232,3

231,7

241,5

IE

2 299,5

2 293,0

2 401,4

EL

1 743,0

1 737,9

1 701,8

ES

11 870,8

11 838,5

11 831,1

FR

21 933,3

21 869,0

22 182,5

HR

470,1

468,8

479,9

IT

16 586,9

16 539,8

16 714,2

CY

182,2

181,7

195,0

LV

281,8

281,1

274,0

LT

434,1

433,0

439,4

LU

363,0

361,9

363,6

HU

1,199,6

1 196,3

1 223,7

MT

103,6

103,3

110,6

NL

7 378,4

7 358,6

7 331,7

AT

3 228,2

3 218,2

3 353,1

PL

4 645,3

4 632,7

4 779,7

PT

1 824,8

1 819,6

1 865,3

RO

1 706,0

1 701,0

1 803,3

SI

443,9

442,8

456,8

SK

813,5

811,2

829,9

FI

2 062,3

2 056,2

2 132,1

SE

4 042,0

4 028,5

4 013,0

UK

18 152,6

18 086,7

16 916,5

EU

142 832,3

142 408,4

142 363,7

3.2
     Revision of the forecast of TOR, VAT and GNI bases

According to established practice, the Commission proposes to revise the financing of the budget on the basis of more recent economic forecasts, agreed with the Member States at the ACOR meeting.

The revision concerns the forecast of Traditional Own Resources (TOR) to be paid to the budget in 2018, as well as the forecast of the 2018 VAT and GNI bases. The forecast in the 2018 Budget was established at the 169th ACOR meeting on 19 May 2017. The revision in the present DAB takes into account the agreed forecasts of the 172nd ACOR meeting held on 18 May 2018. The use of an updated forecast of own resources improves the accuracy of the revenue forecasts and hence of the payments that Member States are asked to make to the EU budget during the budgetary year.

As compared to the forecast agreed in May 2017, the forecast for 2018 has been revised as follows:

–Total 2018 net customs duties are now forecast at EUR 20 164,6 million (after deduction of 20 % in collection costs), which represents a decrease of 11,73 % relative to the forecast of EUR 22 844,0 million included in the Budget 2018. The Commission compared the results of the traditional ACOR forecasting methodology (based on the Spring 2018 macroeconomic forecast) with the results of the extrapolation based on the latest outturn data for collected customs duties (January – April 2018). Since the difference between the two methods was relatively significant, the traditional ACOR updated TOR forecast was fully adjusted to the extrapolation method forecast. However, taking also into account the cashed amounts after the ACOR meeting (May – August 2018), and based on the same extrapolation method, the Commission has now further updated its estimate for net customs duties in 2018.

| Forecast | Amount in EUR million | Difference with previous forecast |
| --- | --- | --- |
| Budget 2018 | 22 844,0 | |
| ACOR May 2018 | 20 501,6 | -2 342,4 |
| DAB 6/2018 | 20 164,6 | -337,0 |

Forecast

Amount in EUR million

Difference with previous forecast

Budget 2018

22 844,0

ACOR May 2018

20 501,6

-2 342,4

DAB 6/2018

20 164,6

-337,0

–The Court of Justice’s judgment case C-585/15 (the “Raffinerie Tirlemontoise” case), annulled Regulations (EC) No 2267/2000 and (EC) No 1993/2001. Council Regulation (EU) 2018/264 of 19 February 2018 establishes the revised production levies and the coefficient for calculating the additional levy in the sugar sector for the 1999/2000 marketing year, and the production levies in the sugar sector for the 2000/2001 marketing year.

As a result, an estimated amount of EUR 93,0 million (net amount) will be reimbursed to the Member States concerning overpaid sugar levies. This reimbursement is expected to be made by year-end. Therefore, the Commission proposes to budget the reimbursement under Article 110 (production levies related to the marketing year 2005/2006 and previous years) of the revenue side of the budget.

–The total 2018 EU uncapped VAT base is now forecast at EUR 6 695 538,5 million, which represents a decrease of -0,53 % compared to the May 2017 forecast of EUR 6 731 265,9 million. The total 2018 EU capped VAT base
  9
  is forecast at EUR 6 676 686,2 million, which represents a decrease of -0,52% compared to the May 2017 forecast of EUR 6 711 411,1 million.

–The total 2018 EU GNI base is forecast at EUR 15 871 050,2 million, which is an increase (+0,78 %) compared to the May 2017 forecast of EUR 15 747 670,0 million.

The exchange rates of 29 December 2017 have been used for converting the forecast VAT and GNI bases in national currency into euro (for the nine Member States that are not members of the euro area). This avoids distortions since it is this rate that is used to convert budgeted own resources payments from euro into national currency when the amounts are called in (as stipulated in Article 10a(1) of Council Regulation No 609/2014).

The revised forecasts of TOR, uncapped VAT bases and GNI bases for 2018, are set out in the following table:

Revised forecasts of TOR, VAT and GNI bases for 2018 (in million EUR)

| | Sugar


  levies


  (80%) | Customs duties


  (80%) | Uncapped VAT bases | GNI bases | Capped


  VAT bases
  10 |
| --- | --- | --- | --- | --- | --- |
| BE | - 5,7 | 2 090,5 | 192 420,2 | 452 469,9 | 192 420,2 |
| BG | 0,0 | 75,2 | 25 520,9 | 52 909,9 | 25 520,9 |
| CZ | 0,0 | 260,9 | 83 389,2 | 197 318,5 | 83 389,2 |
| DK | - 3,4 | 336,1 | 113 888,9 | 304 009,8 | 113 888,9 |
| DE | - 28,4 | 4 036,0 | 1 394 449,9 | 3 459 748,4 | 1 394 449,9 |
| EE | 0,0 | 30,0 | 12 105,4 | 24 232,9 | 12 105,4 |
| IE | - 0,7 | 282,7 | 86 665,6 | 255 025,2 | 86 665,6 |
| EL | - 0,7 | 158,0 | 72 214,4 | 183 573,7 | 72 214,4 |
| ES | - 2,3 | 1 518,6 | 520 432,1 | 1 210 798,4 | 520 432,1 |
| FR | - 26,9 | 1 623,0 | 1 053 145,8 | 2 409 104,3 | 1 053 145,8 |
| HR | 0,0 | 41,3 | 30 897,0 | 50 176,7 | 25 088,4 |
| IT | - 9,2 | 1 821,2 | 686 348,0 | 1 775 333,9 | 686 348,0 |
| CY | 0,0 | 21,4 | 13 076,7 | 19 832,7 | 9 916,4 |
| LV | 0,0 | 34,1 | 11 487,9 | 28 465,5 | 11 487,9 |
| LT | 0,0 | 78,8 | 17 514,0 | 42 597,6 | 17 514,0 |
| LU | 0,0 | 21,5 | 27 693,1 | 39 171,3 | 19 585,7 |
| HU | 0,0 | 145,6 | 53 323,9 | 126 897,4 | 53 323,9 |
| MT | 0,0 | 11,7 | 7 430,8 | 11 309,9 | 5 655,0 |
| NL | - 6,5 | 2 437,3 | 311 915,0 | 764 707,6 | 311 915,0 |
| AT | - 2,7 | 215,3 | 171 017,2 | 387 050,1 | 171 017,2 |
| PL | 0,0 | 648,8 | 206 768,9 | 485 536,5 | 206 768,9 |
| PT | - 0,2 | 155,1 | 97 465,1 | 196 157,5 | 97 465,1 |
| RO | 0,0 | 160,2 | 73 124,7 | 196 940,5 | 73 124,7 |
| SI | 0,0 | 65,8 | 20 783,1 | 45 497,7 | 20 783,1 |
| SK | 0,0 | 91,3 | 30 752,0 | 89 215,0 | 30 752,0 |
| FI | - 0,6 | 138,1 | 98 780,8 | 234 697,1 | 98 780,8 |
| SE | - 1,4 | 519,3 | 214 417,0 | 497 268,8 | 214 417,0 |
| UK | - 4,4 | 3 146,8 | 1 068 510,9 | 2 331 003,4 | 1 068 510,9 |
| EU-28 | - 93,0 | 20 164,6 | 6 695 538,5 | 15 871 050,2 | 6 676 686,2 |

Sugar

levies

(80%)

Customs duties

(80%)

Uncapped VAT bases

GNI bases

Capped

VAT bases
  10

BE

- 5,7

2 090,5

192 420,2

452 469,9

192 420,2

BG

0,0

75,2

25 520,9

52 909,9

25 520,9

CZ

0,0

260,9

83 389,2

197 318,5

83 389,2

DK

- 3,4

336,1

113 888,9

304 009,8

113 888,9

DE

- 28,4

4 036,0

1 394 449,9

3 459 748,4

1 394 449,9

EE

0,0

30,0

12 105,4

24 232,9

12 105,4

IE

- 0,7

282,7

86 665,6

255 025,2

86 665,6

EL

- 0,7

158,0

72 214,4

183 573,7

72 214,4

ES

- 2,3

1 518,6

520 432,1

1 210 798,4

520 432,1

FR

- 26,9

1 623,0

1 053 145,8

2 409 104,3

1 053 145,8

HR

0,0

41,3

30 897,0

50 176,7

25 088,4

IT

- 9,2

1 821,2

686 348,0

1 775 333,9

686 348,0

CY

0,0

21,4

13 076,7

19 832,7

9 916,4

LV

0,0

34,1

11 487,9

28 465,5

11 487,9

LT

0,0

78,8

17 514,0

42 597,6

17 514,0

LU

0,0

21,5

27 693,1

39 171,3

19 585,7

HU

0,0

145,6

53 323,9

126 897,4

53 323,9

MT

0,0

11,7

7 430,8

11 309,9

5 655,0

NL

- 6,5

2 437,3

311 915,0

764 707,6

311 915,0

AT

- 2,7

215,3

171 017,2

387 050,1

171 017,2

PL

0,0

648,8

206 768,9

485 536,5

206 768,9

PT

- 0,2

155,1

97 465,1

196 157,5

97 465,1

RO

0,0

160,2

73 124,7

196 940,5

73 124,7

SI

0,0

65,8

20 783,1

45 497,7

20 783,1

SK

0,0

91,3

30 752,0

89 215,0

30 752,0

FI

- 0,6

138,1

98 780,8

234 697,1

98 780,8

SE

- 1,4

519,3

214 417,0

497 268,8

214 417,0

UK

- 4,4

3 146,8

1 068 510,9

2 331 003,4

1 068 510,9

EU-28

- 93,0

20 164,6

6 695 538,5

15 871 050,2

6 676 686,2

3.3
     2017 and 2014 UK correction

3.3.1
     Introduction

The correction of budgetary imbalances in favour of the United Kingdom (UK correction), to be budgeted in the present DAB, concerns two years: 2014 and 2017.

The 2014 and 2017 UK correction is subject to the rules of Council Decision 2014/335/EU, Euratom on the system of own resources
  11
  of the European Union and its accompanying working document, the 2014 Calculation Method
  12
  . Pursuant to the rules of this Decision, the net TOR "windfall gains" of the UK resulting from the increase since 2001 in the percentage of TOR retained by Member States as a compensation for their collection costs are neutralised and the allocated expenditure is adjusted by the total allocated expenditure in Member States that have acceded to the EU after 30 April 2004, except for agricultural direct payments and market-related expenditure as well as that part of the rural development expenditure originating from the EAGGF, Guarantee section.

Furthermore, the share of Austria, Germany, the Netherlands and Sweden in the financing of the UK correction is reduced to one fourth of their normal share for both, 2014 and 2017 corrections. The reduction is financed by the other Member States, excluding the UK.

In the present DAB, the calculation and financing of the 1st update of the 2017 UK correction and the definitive amount of the 2014 UK correction are entered.

The difference between the definitive amount of the 2014 UK correction and the amount previously budgeted (the 2nd update entered in AB 5/2016) is entered in chapter 35 (Result of the definitive calculation of the financing of the correction of budgetary imbalances for the United Kingdom) of the present DAB.

The 1st update amount of the 2017 UK correction is entered in chapter 15 (Correction of budgetary imbalances) of the present DAB, replacing the previously budgeted provisional amount.

3.3.2
     Calculation of the corrections

The update of the corrections for 2014 and 2017 stems mainly from the update of the VAT and GNI bases as communicated by Member States in autumn 2017. In addition the update of the correction for 2017 also takes into account the allocated expenditure of 2017.

3.3.2.1
     2017 UK correction

The following table summarises the changes between the provisional amount of the 2017 UK correction entered in Budget 2018 and the 1st update of the 2017 UK correction to be entered in the present DAB.

2017 UK correction

| | 2017 UK correction | 2017 UK correction


  PROVISIONAL


  Budget 2018 | 2017 UK correction


  1st UPDATE


  DAB 6/2018 | Difference |
| --- | --- | --- | --- | --- |
| | | (1) | (2) | (2)-(1) |
| (1) | UK share of uncapped VAT base | 17,1194% | 16,2266% | -0,8928% |
| (2) | UK share of enlargement-adjusted total allocated expenditure | 7,4429% | 7,0114% | -0,4315% |
| (3) | = (1) - (2) | 9,6765% | 9,2152% | -0,4613% |
| (4) | Total allocated expenditure | 118 550 222 885 | 110 827 970 366 | - 7 722 252 519 |
| (5) | Enlargement-related expenditure
  = (5a) + (5b) | 25 135 292 635 | 20 962 713 989 | - 4 172 578 647 |
| (5a) | Pre-accession expenditure | 0 | 0 | 0 |
| (5b) | Expenditure related to Art 4(1)(g) | 25 135 292 635 | 20 962 713 989 | - 4 172 578 647 |
| (6) | Enlargement-adjusted total allocated expenditure = (4) - (5) | 93 414 930 250 | 89 865 256 377 | - 3 549 673 872 |
| (7) | UK correction original amount = (3) x (6) x 0.66 | 5 965 942 623 | 5 465 655 078 | - 500 287 545 |
| (8) | UK advantage | 1 019 406 910 | 548 929 008 | - 470 477 902 |
| (9) | Core UK correction = (7) - (8) | 4 946 535 713 | 4 916 726 069 | - 29 809 643 |
| (10) | TOR windfall gains | - 45 769 948 | - 17 211 574 | + 28 558 374 |
| (11) | UK correction = (9) - (10) | 4 992 305 660 | 4 933 937 643 | - 58 368 017 |

2017 UK correction

PROVISIONAL

Budget 2018

2017 UK correction

1st UPDATE

DAB 6/2018

Difference

(1)

(2)

(2)-(1)

(1)

UK share of uncapped VAT base

17,1194%

16,2266%

-0,8928%

(2)

UK share of enlargement-adjusted total allocated expenditure

7,4429%

7,0114%

-0,4315%

(3)

= (1) - (2)

9,6765%

9,2152%

-0,4613%

(4)

Total allocated expenditure

118 550 222 885

110 827 970 366

- 7 722 252 519

(5)

Enlargement-related expenditure
  = (5a) + (5b)

25 135 292 635

20 962 713 989

- 4 172 578 647

(5a)

Pre-accession expenditure

0

0

0

(5b)

Expenditure related to Art 4(1)(g)

25 135 292 635

20 962 713 989

- 4 172 578 647

(6)

Enlargement-adjusted total allocated expenditure = (4) - (5)

93 414 930 250

89 865 256 377

- 3 549 673 872

(7)

UK correction original amount = (3) x (6) x 0.66

5 965 942 623

5 465 655 078

- 500 287 545

(8)

UK advantage

1 019 406 910

548 929 008

- 470 477 902

(9)

Core UK correction = (7) - (8)

4 946 535 713

4 916 726 069

- 29 809 643

(10)

TOR windfall gains

- 45 769 948

- 17 211 574

- 28 558 374

(11)

UK correction = (9) - (10)

4 992 305 660

4 933 937 643

- 58 368 017

The 1st update of the 2017 UK correction is around EUR 58 million lower as compared to the provisional amount of the 2017 UK correction entered in Budget 2018.

3.3.2.2
     2014 UK correction

The following table summarises the changes between the 2nd update of the 2014 UK correction entered in Amending Budget 5/2016 and the definitive amount of the 2014 UK correction to be entered in the present DAB.

| | 2014 UK correction | 2014 UK correction
  2nd UPDATE
  AB 5/2016 | 2014 UK correction
  DEFINITIVE
  DAB 6/2018 | Difference |
| --- | --- | --- | --- | --- |
| | | (1) | (2) | (2)-(1) |
| (1) | UK share of uncapped VAT base | 17,4319% | 17,3737% | + 0,0582% |
| (2) | UK share of enlargement-adjusted total allocated expenditure | 7,4180% | 7,4180% | + 0,0000% |
| (3) | = (1) - (2) | 10,0139% | 9,9557% | + 0,0582% |
| (4) | Total allocated expenditure | 128 669 838 650 | 128 669 838 650 | 0 |
| (5) | Enlargement-related expenditure
  = (5a) + (5b) | 33 342 488 843 | 33 342 488 843 | 0 |
| (5a) | Pre-accession expenditure | 0 | 0 | 0 |
| (5b) | Expenditure related to Art 4(1)(g) | 33 342 488 843 | 33 342 488 843 | 0 |
| (6) | Enlargement-adjusted total allocated expenditure = (4) - (5) | 95 327 349 807 | 95 327 349 807 | 0 |
| (7) | UK correction original amount = (3) x (6) x 0.66 | 6 300 352 079 | 6 263 729 054 | - 36 623 025 |
| (8) | UK advantage | 1 162 878 038 | 1 023 430 934 | - 139 447 104 |
| (9) | Core UK correction = (7) - (8) | 5 137 474 040 | 5 240 298 119 | + 102 824 079 |
| (10) | TOR windfall gains | -28 189 034 | -26 930 139 | + 1 258 896 |
| (11) | UK correction = (9) - (10) | 5 165 663 075 | 5 267 228 258 | +101 565 183 |

2014 UK correction

2014 UK correction
  2nd UPDATE
  AB 5/2016

2014 UK correction
  DEFINITIVE
  DAB 6/2018

Difference

(1)

(2)

(2)-(1)

(1)

UK share of uncapped VAT base

17,4319%

17,3737%

- 0,0582%

(2)

UK share of enlargement-adjusted total allocated expenditure

7,4180%

7,4180%

- 0,0000%

(3)

= (1) - (2)

10,0139%

9,9557%

- 0,0582%

(4)

Total allocated expenditure

128 669 838 650

128 669 838 650

0

(5)

Enlargement-related expenditure
  = (5a) + (5b)

33 342 488 843

33 342 488 843

0

(5a)

Pre-accession expenditure

0

0

0

(5b)

Expenditure related to Art 4(1)(g)

33 342 488 843

33 342 488 843

0

(6)

Enlargement-adjusted total allocated expenditure = (4) - (5)

95 327 349 807

95 327 349 807

0

(7)

UK correction original amount = (3) x (6) x 0.66

6 300 352 079

6 263 729 054

- 36 623 025

(8)

UK advantage

1 162 878 038

1 023 430 934

- 139 447 104

(9)

Core UK correction = (7) - (8)

5 137 474 040

5 240 298 119

- 102 824 079

(10)

TOR windfall gains

-28 189 034

-26 930 139

- 1 258 896

(11)

UK correction = (9) - (10)

5 165 663 075

5 267 228 258

+101 565 183

The definitive amount of the 2014 UK correction is EUR 102 million higher than the 2nd update of the 2014 UK correction entered in AB 5/2016 mainly due to the updates of the VAT and GNI bases as communicated by Member States in autumn 2017.

3.3.3
     Entry in the DAB 6/2018 of the 1st update of the 2017 UK correction and definitive amount of the 2014 UK correction

3.3.3.1
     2014 UK correction (chapter 35)

The amount of the UK correction to be budgeted in chapter 35 of the present DAB is the difference between the definitive amount of the 2014 UK correction (i.e. EUR 5 267 228 258) and the 2nd update of the 2014 UK correction (i.e. EUR 5 165 663 075 entered in AB 5/2016) amounting to EUR 101 565 183.

This amount is to be financed along the revised 2014 GNI bases as known at the end of 2017. The budgeting of this amount in chapter 35 is summarised below:

| 2014 UK correction — Chapter 35 |
| --- |
| BE | 1 189 588 | LU | 396 101 |
| BG | 1 314 590 | HU | 1 450 317 |
| CZ | 4 774 050 | MT | 287 498 |
| DK | 6 637 880 | NL | 1 144 795 |
| DE | 4 827 592 | AT | 1 225 444 |
| EE | 79 593 | PL | 3 032 377 |
| IE | 17 082 160 | PT | 904 421 |
| EL | 1 707 571 | RO | 974 427 |
| ES | 6 540 304 | SI | -64 803 |
| FR | 23 264 515 | SK | 1 838 327 |
| HR | 827 042 | FI | 2 716 018 |
| IT | 17 952 849 | SE | 793 690 |
| CY | 552 558 | | |
| LV | -273 682 | UK | - 101 565 183 |
| LT | 389 961 | Total | 0 |

2014 UK correction — Chapter 35

BE

1 189 588

LU

396 101

BG

1 314 590

HU

1 450 317

CZ

4 774 050

MT

287 498

DK

6 637 880

NL

1 144 795

DE

4 827 592

AT

1 225 444

EE

79 593

PL

3 032 377

IE

17 082 160

PT

904 421

EL

1 707 571

RO

974 427

ES

6 540 304

SI

-64 803

FR

23 264 515

SK

1 838 327

HR

827 042

FI

2 716 018

IT

17 952 849

SE

793 690

CY

552 558

LV

-273 682

UK

- 101 565 183

LT

389 961

Total

0

1.3.3.2
     2017 UK correction (chapter 15)

The 1st update of the 2017 UK correction corresponds to EUR 4 933 937 643 and is EUR 58 368 017 million lower than the amount entered in Budget 2018 (EUR 4 992 305 660).

This amount is to be financed along the revised 2018 GNI bases of the present DAB. The budgeting of this amount in chapter 15 is summarised below:

| 2017 UK correction – chapter 15 |
| --- |
| BE | 239 806 867 | LU | 20 760 600 |
| BG | 28 041 992 | HU | 67 255 010 |
| CZ | 104 577 854 | MT | 5 994 192 |
| DK | 161 123 729 | NL | 69 664 080 |
| DE | 315 179 541 | AT | 35 259 868 |
| EE | 12 843 320 | PL | 257 332 005 |
| IE | 135 162 127 | PT | 103 962 530 |
| EL | 97 293 176 | RO | 104 377 516 |
| ES | 641 717 317 | SI | 24 113 562 |
| FR | 1 276 813 669 | SK | 47 283 520 |
| HR | 26 593 409 | FI | 124 388 332 |
| IT | 940 918 412 | SE | 45 300 679 |
| CY | 10 511 235 | UK | - 4 933 937 643 |
| LV | 15 086 578 | | |
| LT | 22 576 523 | Total | 0 |

2017 UK correction – chapter 15

BE

239 806 867

LU

20 760 600

BG

28 041 992

HU

67 255 010

CZ

104 577 854

MT

5 994 192

DK

161 123 729

NL

69 664 080

DE

315 179 541

AT

35 259 868

EE

12 843 320

PL

257 332 005

IE

135 162 127

PT

103 962 530

EL

97 293 176

RO

104 377 516

ES

641 717 317

SI

24 113 562

FR

1 276 813 669

SK

47 283 520

HR

26 593 409

FI

124 388 332

IT

940 918 412

SE

45 300 679

CY

10 511 235

UK

- 4 933 937 643

LV

15 086 578

LT

22 576 523

Total

0

4.Summary table by MFF heading

| Heading | Budget 2018 | Draft Amending Budget 6/2018 | Budget 2018 |
| --- | --- | --- | --- |
| | (incl. AB 1-5/2018) | | (incl. AB 1-5 & DAB 6/2018) |
| | CA | PA | CA | PA | CA | PA |
| 1. | Smart and inclusive growth | 77 533 697 652 | 66 624 486 101 | - 1 900 000 | - 1 900 000 | 77 531 797 652 | 66 622 586 101 |
| Of which under global margin for commitments | 1 113 697 652 | | - 1 900 000 | | 1 111 797 652 | |
| Ceiling | 76 420 000 000 | | | | 76 420 000 000 | |
| Margin | | | | | | |
| 1a | Competitiveness for growth and jobs | 22 001 452 724 | 20 097 167 844 | - 1 900 000 | - 1 900 000 | 21 999 552 724 | 20 095 267 844 |
| Of which under global margin for commitments | 762 452 724 | | - 1 900 000 | | 760 552 724 | |
| Ceiling | 21 239 000 000 | | | | 21 239 000 000 | |
| Margin | | | | | | |
| 1b | Economic  social and territorial cohesion | 55 532 244 928 | 46 527 318 257 | | | 55 532 244 928 | 46 527 318 257 |
| Of which under global margin for commitments | 351 244 928 | | | | 351 244 928 | |
| Ceiling | 55 181 000 000 | | | | 55 181 000 000 | |
| Margin | | | | | | |
| 2. | Sustainable growth: natural resources | 59 285 323 122 | 56 083 793 633 | - 46 765 000 | - 42 802 703 | 59 238 558 122 | 56 040 990 930 |
| Ceiling | 60 267 000 000 | | | | 60 267 000 000 | |
| Margin | 981 676 878 | | | | 1 028 441 878 | |
| Of which: European Agricultural Guarantee Fund (EAGF) — Market related expenditure and direct payments | 43 234 516 899 | 43 188 677 466 | - 1 400 000 | - 1 400 000 | 43 233 116 899 | 43 187 277 466 |
| Sub-ceiling | 44 163 000 000 | | | | 44 163 000 000 | |
| EAGF Margin | 927 833 101 | | | | 929 233 101 | |
| 3. | Security and citizenship | 3 493 241 199 | 2 980 707 175 | | | 3 493 241 199 | 2 980 707 175 |
| Of which under Flexibility Instrument | 837 241 199 | | | | 837 241 199 | |
| Ceiling | 2 656 000 000 | | | | 2 656 000 000 | |
| Margin | | | | | | |
| 4. | Global Europe | 10 068 842 411 | 8 906 075 154 | | | 10 068 842 411 | 8 906 075 154 |
| Of which under global margin for commitments | 243 842 411 | | | | 243 842 411 | |
| Ceiling | 9 825 000 000 | | | | 9 825 000 000 | |
| Margin | | | | | | |
| 5. | Administration | 9 665 513 627 | 9 666 318 627 | | | 9 665 513 627 | 9 666 318 627 |
| Ceiling | 10 346 000 000 | | | | 10 346 000 000 | |
| Of which offset against Contingency margin | - 318 000 000 | | | | - 318 000 000 | |
| Margin | 362 486 373 | | | | 362 486 373 | |
| Of which: Administrative expenditure of the institutions | 7 579 920 627 | 7 580 725 627 | | | 7 579 920 627 | 7 580 725 627 |
| Sub-ceiling | 8 360 000 000 | | | | 8 360 000 000 | |
| Of which offset against Contingency margin | - 318 000 000 | | | | - 318 000 000 | |
| Margin | 462 079 373 | | | | 462 079 373 | |
| Total | 160 046 618 011 | 144 261 380 690 | - 48 665 000 | - 44 702 703 | 159 997 953 011 | 144 216 677 987 |
| Of which under Flexibility Instrument | 837 241 199 | 678 340 197 | | | 837 241 199 | 678 340 197 |
| Of which under global margin for commitments | 1 357 540 063 | | - 1 900 000 | | 1 355 640 063 | |
| Ceiling | 159 514 000 000 | 154 565 000 000 | | | 159 514 000 000 | 154 565 000 000 |
| Of which offset against Contingency margin | - 318 000 000 | | | | - 318 000 000 | |
| Margin | 1 344 163 251 | 10 981 959 507 | | | 1 390 928 251 | 11 026 662 210 |
| | Other special Instruments | 698 540 311 | 551 238 311 | | | 698 540 311 | 551 238 311 |
| Grand Total | 160 745 158 322 | 144 812 619 001 | - 48 665 000 | - 44 702 703 | 160 696 493 322 | 144 767 916 298 |

Heading

Budget 2018

Draft Amending Budget 6/2018

Budget 2018

(incl. AB 1-5/2018)

(incl. AB 1-5 & DAB 6/2018)

CA

PA

CA

PA

CA

PA

1.

Smart and inclusive growth

77 533 697 652

66 624 486 101

- 1 900 000

- 1 900 000

77 531 797 652

66 622 586 101

Of which under global margin for commitments

1 113 697 652

- 1 900 000

1 111 797 652

Ceiling

76 420 000 000

76 420 000 000

Margin

1a

Competitiveness for growth and jobs

22 001 452 724

20 097 167 844

- 1 900 000

- 1 900 000

21 999 552 724

20 095 267 844

Of which under global margin for commitments

762 452 724

- 1 900 000

760 552 724

Ceiling

21 239 000 000

21 239 000 000

Margin

1b

Economic  social and territorial cohesion

55 532 244 928

46 527 318 257

55 532 244 928

46 527 318 257

Of which under global margin for commitments

351 244 928

351 244 928

Ceiling

55 181 000 000

55 181 000 000

Margin

2.

Sustainable growth: natural resources

59 285 323 122

56 083 793 633

- 46 765 000

- 42 802 703

59 238 558 122

56 040 990 930

Ceiling

60 267 000 000

60 267 000 000

Margin

981 676 878

1 028 441 878

Of which: European Agricultural Guarantee Fund (EAGF) — Market related expenditure and direct payments

43 234 516 899

43 188 677 466

- 1 400 000

- 1 400 000

43 233 116 899

43 187 277 466

Sub-ceiling

44 163 000 000

44 163 000 000

EAGF Margin

927 833 101

929 233 101

3.

Security and citizenship

3 493 241 199

2 980 707 175

3 493 241 199

2 980 707 175

Of which under Flexibility Instrument

837 241 199

837 241 199

Ceiling

2 656 000 000

2 656 000 000

Margin

4.

Global Europe

10 068 842 411

8 906 075 154

10 068 842 411

8 906 075 154

Of which under global margin for commitments

243 842 411

243 842 411

Ceiling

9 825 000 000

9 825 000 000

Margin

5.

Administration

9 665 513 627

9 666 318 627

9 665 513 627

9 666 318 627

Ceiling

10 346 000 000

10 346 000 000

Of which offset against Contingency margin

- 318 000 000

- 318 000 000

Margin

362 486 373

362 486 373

Of which: Administrative expenditure of the institutions

7 579 920 627

7 580 725 627

7 579 920 627

7 580 725 627

Sub-ceiling

8 360 000 000

8 360 000 000

Of which offset against Contingency margin

- 318 000 000

- 318 000 000

Margin

462 079 373

462 079 373

Total

160 046 618 011

144 261 380 690

- 48 665 000

- 44 702 703

159 997 953 011

144 216 677 987

Of which under Flexibility Instrument

837 241 199

678 340 197

837 241 199

678 340 197

Of which under global margin for commitments

1 357 540 063

- 1 900 000

1 355 640 063

Ceiling

159 514 000 000

154 565 000 000

159 514 000 000

154 565 000 000

Of which offset against Contingency margin

- 318 000 000

- 318 000 000

Margin

1 344 163 251

10 981 959 507

1 390 928 251

11 026 662 210

Other special Instruments

698 540 311

551 238 311

698 540 311

551 238 311

Grand Total

160 745 158 322

144 812 619 001

- 48 665 000

- 44 702 703

160 696 493 322

144 767 916 298