COMMUNICATION FROM THE COMMISSION TO THE COUNCIL

Financial information on the European Development Fund

1. Foreword

In accordance with Article 7(3) of the Internal Agreement[1] and Articles 57(3) and (4) of the 10th EDF Financial Regulation[2], the Commission presents in this document estimates of commitments, payments and contributions for the period 2014 and 2015, taking into account the forecasts of the European Investment Bank (EIB) concerning the Investment Facility.

This document sets out the financial implementation of the EDFs (8th to 10th) for 2013 and the forecasts of implementation for 2014 to 2015.

The Member States contribute funds directly to the European Investment Bank for the instruments which it manages under the 9th and 10th EDFs (the Investment Facility and interest-rate subsidies). Contributions for other instruments, including contributions for the old instruments managed by the EIB (risk capital and interest-rate subsidies), go to the Commission.

2. Introduction

The Commission and the EIB have updated their commitment and payment forecasts for 2014 and 2015 for each of the ACP countries[3] and the OCTs[4]. The payment forecasts in particular have been compiled with the aim of helping the Member States to assess as accurately as possible the amounts they need to earmark in their national budgets while ensuring that sufficient financial resources are available for the EDF to avoid liquidity problems.

In accordance with Article 7 of the Internal Agreement on the 10th EDF[5] and Article 57(5) of the Financial Regulation[6], the estimates provided in this document will be updated in the October 2014 communication.

The graph below shows the general trend in commitments and payments, including projections for 2014 - 2015 (Commission and EIB).

Gross commitments and payments: trend 1999-2015 (Million EUROS)[7]

Implementation of the European Development Funds at 31 December 2013 (commitments, payments and financial situation).

The attachments 1, 2 and 3 show respectively the actual commitments, payments and financial situation recorded in 2013 compared with the forecasts made in October 2013[8].

3. Financial forecasts for 2014 – 2015

The following table provides an update based on our latest forecasts.

4. Financial implementation forecasts for 2014 and 2015

The updated forecasts are set out in Attachments 1 to 3.

The updated 2014 forecasts confirm the Member States' contributions to the EDF for 2014 at EUR 3 250 million, as decided by the Council in October 2013[9].

It should be noted that due to the request of the EIB to cancel the third instalment for 2014 and as a consequence of the increase in payments made by the Commission in the course of 2013 and of those planned for 2014, justifying an increase in treasury needs, the amount cancelled by the EIB has been transferred to the Commission. This means that the final request to the Member States is EUR 3 144 million for the Commission and EUR 106 million for the EIB (see attachment 4 for detail on the split of the 2014 contribution requests).

For 2015 we forecast the ceiling for the Member States contributions will amount to EUR 3 300 million for the Commission and EUR 300 million for the EIB.

It should be stressed that these figures are a preliminary forecast and must be treated with caution. The Commission and the EIB will make more reliable forecasts after the summer. They will be presented in the October communication.

[1] Internal Agreement between the Representatives of the Governments of the Member States, meeting within the Council, on the financing of Community aid under the multiannual financial framework for the period 2008 to 2013 in accordance with the ACP-EC Partnership Agreement and on the allocation of financial assistance for the Overseas Countries and Territories to which Part Four of the EC Treaty applies, OJ L 247, 9.9.2006, p. 32.

[2] Council Regulation (EC) No 215/2008 of 18 February 2008 on the Financial Regulation applicable to the 10th European Development Fund.

[3] African, Caribbean and Pacific States.

[4] Overseas Countries and Territories.

[5] OJ L 247, 9.9.2006, p. 32.

[6] Council Regulation (EC) No 215/2008 of 18 February 2008 on the Financial Regulation applicable to the 10th European Development Fund.

[7] For 2014-2015, forecasted amounts

[8] COM(2013) 735.

[9] Council Decision of 7 November 2013 – Council document 15699/13