ARCHIVES HISTORIQUES 
DE LA COMMISSION 
 
 
 
COLLECTION RELIEE DES 
DOCUMENTS "COM" 
 
 
 
 
COM (85) 630 
 
 
Vol. 1985/0 225 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the openin g to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this fi le is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 1983  über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 vom 27. 9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION OF THE EUROPEAN COMMUNITIES
COM (8'?) 630 final.
B r u s s e l s  AT.  N o v e m b e r 1 9 8 5 ·
EUROPEAN DEVELOPMENT FUND  
(EDF)
ESTIMATE OF CONTRIBUTIONS REQUIRED TO MEET EXPENDITURE  
IN THE FINANCIAL YEAR 1986.
(COMMUNICATION FROM THE COMMISSION TO THE COUNCIL)
COM(85) 630 final.

EUROPEAN DEVELOPMENT FUND
INTRODUCTION
1. As provided in Article 6(2) of the Internal  
Agreement on the financing and administration of  
the Fifth European Development Fund (and by Article  
6(2) of the Internal Agreement of 1985), the  
present communication examines actual and estimated  
expenditure of the EDF m  1985 and presents a  
forecast of cash requirements Of the Fund in 1986.  
Taking into account the anticipated bank balances  
at end-1985 and the payments foreseen for 1986, the  
proposed contributions required to cover the Fund's  
needs in 1986 are indicated.
2. Following the presentation of its Communication to
the Council relating to Member States'
contributions for 1985 *, the Commission's services  
have continued to keep a close watch on the level  
of balances in the various bank accounts of the EDF  
m  Europe and in the ACP States. As a result, it  
is expected that the balances in hand at end-1985  
will, subject to some adjustment, be in line with  
the minimum reserve needed to deal with day—to—day  
requirements. Tight control of the working
balances also removed the necessity to call on the  
amount of 40 million ECUS authorised as an optional  
tranche of contributions to the EDF in 1985 by  
Council Decision of 19 December 1984.
3. The method used for forecasting expenditure m  1986  
is that adopted in recent years involving  
estimating payments on the basis of the trends in  
disbursements from the different EDFs.  However,  
as a first step in attempting to sharpen the  
accuracy of EDF payment estimates (and bearing in  
mind the proposal in the draft Financial Regulation  
for the 6th EDF ** to introduce pluriannual  
estimates) a crosscheck has been made on the  
estimates derived from the trend approach by  
calculating the likely level of expenditure from  
the 5th EDF in its 6th year of operation by  
reference to expenditure under the different  
sectoral headings (industry, agriculture, stabex,  
emergency aid etc.) from the 4th EDF in its  
corresponding year of operation.
* COM(84) 663 final, 20.11.8 4
** COM(85) 460 final, 16.9.85

- 2 -
1985 Payments and estimated cash position end 1985
4. In the first nine months of the present year,  
payments from the EDF amounted to 530,7 million  
ECUS, averaging 59 million ECUS per month(50  
Million ECUS per month if Stabex and Emergency aid  
are excluded).
Extrapolation of this trend for the remainder of  
the year gives an annual figure for 1985 of 721  
million ECUS. To this must be added 134 million  
ECUS in respect of payments between now and  
end-1985 under the system for stabilisation of  
export earnings (STABEX). Here it should be noted  
that, in accordance with the arrangements approved  
in Decision No. 7/85 of the ACP/EEC Council of  
Ministers on 21 June 1985, the residue of the Lome  
II Stabex allocation remaining after current claims  
are met has to be distributed as supplementary  
transfers in respect of shortfalls m  the 1980 and  
1981 Stabex transfers. It is hoped that
disbursements of the amount involved will be made  
before the end of 1985, thereby reducing the EDF  
cash balance to minimum levels as indicated above.*
5. The cash position of the Fund during the last  
quarter of 1985 is estimated to be as follows:
MILLION ECUS
Cash in bank as at 30th September 1985 320,5
Contributions payable 1st October
(last instalment 1985) 167,5
Estimated interest on deposits -
last 3 months 1985 5,0
TOTAL FUNDS AVAILABLE 493,0
DEDUCT: Estimated payments, last
3 months of 1985** 324,0
Estimated bank balance as at
31 December 1985 169,0
* Should there be any carryover of expenditure to next  
year, the amounts involved will be paid out early in  
1986 and will not be available to swell the balance
available for non-Stabex expenditure.
** Includes balance available for STABEX of circa 134
Mio ECUS.

- 3 -
EXPENDITURE FORECAST FOR 1986
6. Forecasts of expenditure for 1986 are largely  
concentrated on the 5th EDF with some residual  
expenditure from the 3rd and 4th Funds (forecast to  
total 90 Mio ECUS next year) and a beginning of 
Stabex and Emergency Aid expenditure m  respect of  
the 6th EDF. For expenditure from the 5th EDF  
three different bases were compared:
i) The proportion of payments in the 6th year
of the 1st, 2nd, 3rd and 4th EDF to the  
total amounts allotted to the funds was  
examined (ANNEXES I and II). The weighted  
average payments in the sixth year from the  
different funds represented 15% of the total  
funds allotted. Assuming that expenditure  
during the sixth year of the 5th EDF follows  
the average trend, total expenditure for  
this Fund m  1986 would be 720 MIO ECUS.
li)  The rhythm of payments follows closely the  
pattern of commitment decisions. The
proportion of commitments involving payments  
in the 5th and 6th years of the 4th EDF was  
established. The resulting percentages
were applied to estimated commitments at the  
end of the 5 th and 6th years of the 5th  
EDF. By difference the expected
expenditure in 1986, the 6th year of the 5th  
EDF was determined - this amounted to 706  
MIO ECUS (ANNEXE III).
m )  As a refinement of n) the sectoral  
composition (industry, agriculture, Stabex,  
emergency aid etc.) of commitments from the 
4th EDF was analysed and the relative  
disbursement m  each sector m  the 6th year  
of operation of the Fund was calculated.  
The resulting payment rhythms were applied  
to commitments by sector of the 5th EDF as  
at 30th June 1985. This calculation,
details of which are given in Annex IV,  
estimated expenditure for the 5th EDF in  
1986 at 695 MILLION ECUS.
The differences in the three sets of calculations  
are not significant and it was considered prudent  
bearing in mind the reduction in cash balances  
already achieved and in prospect to take the  
highest figure — 720 MILLION ECUS — as the best
estimate for 5th EDF disbursements in 1986.

- 4 -
7. As regards the 6th EDF, it is anticipated that the  
Lomé programming procedures will not be  
sufficiently far advanced to entail significant  
expenditure in 1986 and no provision for such  
payments is being made in the present estimates.  
However, it is necessary to include amounts for  
increased levels of non-programmed expenditure -  
Stabex and Emergency Aid - provided for in the  
Third Lomé Convention which will in fact take place  
in 1986. The net additional cash requirement for  
such expenditure are estimated at 130 MILLION ECUS  
*. A point to note in regard to Stabex is that  
in view of the terms of Art. 153 of the Third Lomé  
Convention which provide for the investment of the  
annual Stabex instalment of 185 MILLION ECUS, it  
will be necessary to call up this amount annually  
m  the EDF contributions (m two instalments, those
for January and July).
SUMMARY OF CASH REQUIREMENTS FOR 1986
8. EXPENDITURE 1986 MIO ECUS.
3rd EDF 7
4th EDF 83
5th EDF 720
6th EDF 130
Total expenditure 940
Deduct;  Reduction in bank balance  
to minimum reserve level
169 - 110 - rounded to (60)
TOTAL CASH REQUIREMENTS 880
6th EDF annual provisions for Stabex (185 MILLION  
ECUS) and Emergency Aid (60 MILLION ECUS) less 15%  
of 5th EDF Stabex (550 MILLION ECUS) and Emergency  
Aid (210 MILLION ECUS).

- 5 -
9. The total contributions of 880 MILLION ECUS  
proposed for 1986 compares with (Tl contributions  
for the present year of 670 MILLION ECUS and (ii)  
estimated expenditure of 855 MILLION ECUS m  1985.
The difference in contributions is explained in  
large part by the draw down in cash balances during  
the present year from 334 MILLION ECUS at 31.12.84  
to 169 MILLION at end-1985. The expected increase  
m  expenditure, 25 MILLION ECUS represents a small  
tail off of disbursements from the 5th EDF - from  
16% of the total Lome II envelope in 1985 to 15%  
in 1986 - which is more than offset by the advent  
of Stabex and Emergency Aid payments from the 6th  
EDF next year.
10. In accordance with Article I (2) of the Financial  
Regulation of 17th March 1981 relating to the 5th  
EDF - which also covers contributions from other  
funds - the contribution of 880 MIO ECUS will be  
called for in the following instalments:
MIO ECUS
Monday - 20th January 1986 266 (i.e. 174 +
92 Stabex)
Tuesday - 1st April 1986 174
Tuesday - 1st July 1986 266 (i.e. 174 +
92 Stabex)
Wednesday - 1st October 1986 174
880
The Commission wishes to impress on Member States  
the necessity to observe these deadlines for  
payment of the quarterly instalments of their  
contributions. Whilst there was once again some  
improvement in this matter in 1985, some Member  
States continue to be late m  making their  
contributions. Such delays increase the
difficulties of managing the Fund and demand the  
maintenance of higher balances than would normally  
be necessary.


28 
26 
24 
22 
20 
18 ·  
16 -  
14 
12 
10 
8
6 - 
4 -  
2 
0 
28 
26 
24 
22 ·  
20 -  
18 -  
16 
14 
12 
10 
8 
6 
4 
2 
0 
28 
26 
24 
22 
20 
18 
16 
14 
12 
10 
8 
6 
4 
2 
0 
28 
26 
24 
22 
20 
18 
16 
14 
12 
105 e F.E.D. : dotation  totale  4820000000,- ecuRYTHME DE CONSOMMATION DU F.E.D.A N N E X E  2
FIN D’ANNEE % CONSOMMATION/ DOTATION
1° 4,- 196,-
2° 1 1- 526,-
3° 20,- 945,-
4° 31,- 1.455,-
5°
6°
7°
8“
4 e F.E.D. : dotation  totale  3207000000,- ecu
U  UFIN D'ANNEE % CONSOMMATION/ DOTATION
1° 3,- 98,-
2° 8,- 246,-
3° 18,- 572,-
4° 31,- 995,-
5° 45,- 1.455,-
6° 59,- 1.900,-
7° 69,- 2.206,-
8° 78,- 2.491,-
3 e F.E.D. : dotation  totale  916000000,- ecu
20
16FIN D'ANNEE % CONSOMMATION/DOTATION
1° 3,- 23,-
2° 8,- 66,-
3° 19,- 165,-
4° 34,- 306,-
5° 54,- 489,-
6° 68,- 620,-
7° 77,- 700,-
8° 84,- 766,-
0,5
28
28
24
22
20
18
16
14
12
102 e F.E.D. : dotation  totale  731000000,- ecu
1e  F.E.D. : DOTATION TOTALE 569 443 000,- ECUFIN D’ANNEE % CONSOMMATION/DOTATION
1° 3,- 22,-
2° 7,- 54,-
3° 13,- 96,-
4° 22,- 164,-
5° 34,- 254,-
6° 52!,- 383,-
7° 68,- 504,-
8° 79- 582,-
-____ 1 10 ,
3  0 , 1  — ·  ■ >0 , 1  o p j
FIN D’ANNEE % CONSOMMATION/DOTATION
1° 1,- 3,-
2° 4,- 19,-
3° 13,- 73,-
4° 24,- 138,-
5° 38,- 221,-
6° 53,- 306,-
7° 67,- 383,-
8° 78,- 444,-
ANNEES 1-|—  
12—i —
13—i —
14-1—
15 16 17 18 19

ANNEXE III
COMPARISON OF PAYMENTS AND COMMITMENTS
4TH AND 5TH EDF (ACP).
A. 4TH FUND COMMITMENTS PAYMENTS PAYMENTS
(CUMULATIVE) (CUMULATIVE) %
MIO ECUS MIO ECUSCOMMITMENTS
FIFTH YEAR 2.007,2
SIXTH YEAR 2.414,41.443,9
1.882,271,9% (A)
77,9% (B)
B. 5TH FUND
FIFTH YEAR
(END 1985 - ESTIMATE)
3.524.0
SIXTH YEAR
(END 1986 - ESTIMATE)
4.159.02.533,8 (l) 71,9% (A)
3.240,0 (n) 77,9% (B)
ESTIMATED FIFTH EDF
PAYMENTS IN 1986 (li)-(i) 706,2

ANNEXE IV
(1) (2)
END YEAR 6  
4TH EDF 
PAYMENTS %  
COMMITMENTSAS AT 30.6.85  
COMPOSITION OF  
5TH EDF 
COMMITMENTS
MISCELLANEOUS 88,2 0,9%
INDUSTRIALISATION 82,6 
TOURISM 91,7 
AGRICULTURAL 69,3 
TRANSPORT 66,7 
EDUCATION 62,2 
HEALTH 78,2 
IRRIGATION/WATER 72,7 
COMMERCIAL DEVELOPMENT 67,2  
STABEX 100,0 
EMERGENCY AID 92,820,0%
0,6%
25,3%
17,7%
7,0%
2,1%
6,5%
1,3%
13,3%
5,3%
(AVERAGE) 77,9 100,0
Weighting (l) by (2) indicates that at end year 6, the  
5th EDF payments will be 77,02% of commitments i.e.  
1,12% less than for the 4th EDF at the end of the  
equivalent period. If the calculation indicated by
Annexes I and II is weighted downwards by 1,1% the'  
anticipated payments m  1986 for the EDF would be 695,4  
MIO ECUS.

_ \ -
ANNEX 5
European Development Fund - Financial year 1986
Fourth EDF commitments
(million ECU)
Year Commitment for that year Aggregate
1976 383 3831977 707 1.0901978 564 1.6541979 569 2.2231980 508 2.7311981 150 2.8811982
1983102
282.983
3.011198426 3.03730.9.1985 4 3.04131.12.1985 7 * 3.048
(*) Forecast on the basis of the programme for EOF Committee meetings up to and  
including December 1985.
Fifth EDF commitments
(million ECU)
1981
1982
1983
1984
30.9.1985
31.12.1985549 
1.003 
759 
791 
340 
82 *549
,552
,311
,102
442
3.524
(*)Forecast on the basis of the programme for EDF communitee meetings up to and  
including December 1985.

1986 5TH EDF CONTRIBUTIONS (IN ECU) Annexe 6
MEMBER STATESPERCENTAGE PER  
MEMBER STATE1ST INSTALMENT  
20 JANUARY 862ND INSTALMENT  
1 APRIL 863RD INSTALMENT  
1 JULY 864TH INSTALMENT  
1 OCTOBER 86GRAND TOTAL |
BELGIUM 5,8215.481.200,— 10.126.800,— 15.481.200,— 10.126.800,— 51.216.000,—
DENMARK 2,47 6.570.200,— 4.297.800,— 6.570.200,— 4.297.800,— 21.736.000,—
GERMANY 27,92 74.267.200,— 48.580.800,— 74.267.200,— 48.580.800,— 245.696.000,--
GREECE 1,343.564.400,— 2.331.600,— 3.564.400,— 2.331.600,— 11.792.000,—
FRANCE 25,26 67.191.600,— 43.952.400,— 67.191.600,— 43.952.400,— 222.288.000,—
IRELAND 0,59 1.569.400,— 1.026.600,— 1.569.400,— 1.026.600,— 5.192.000,—
ITALY 11,34 30.164.400,— 19.731.600,— 30.164.400,— 19.731.600,— 99.792.000,—
LUXEMBOURG 0,20 532.000,— 348.000,— 532.000,— 348.000,— 1.760.000,—
NETHERLANDS 7,30 19.418.000,— 12.702.000,— 19.418.000,— 12.702.000," 64.240.000,—
UNITED KINGDOM 17,76 47.241.600,— 30.902.400,— 47.241.600,— 30.902.400,— 156.288.000,—
TOTAL 100,00 266.000.000,— 174.000.000,— 266.000.000,— 174.000.000,— 880.000.000,—