[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 13.6.2008

COM(2008) 354 final

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT

Financial Information on the European Development Funds

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT

Financial Information on the European Development Funds

Foreword

This document is to be annexed to the draft budget for 2009. in accordance with the 1979 agreements on budgetary procedure.

Article 157 of the Financial Regulation of 18 February 2008 applicable to the 10th European Development Fund[1]. hereinafter referred to as "the EDF". effectively stipulates that the current procedure for calls for contributions. as laid down in the Financial Regulation applicable to the 9th EDF. remains in force for the contributions to be paid by the Member States in 2008. Article 8(3) of the Financial Regulation applicable to the 9th EDF[2] requires the Commission to make this document available to the Council by 15 June. stipulating that this information serves as a basis for an interim estimate of commitments and payments.

As in previous years. this document sets out:

- implementation of the EDFs (7th to 9th) at 31 December 2007;

- financial implementation forecasts for the current year;

- expenditure forecasts for 2009.

The Member States contribute funds directly to the European Investment Bank (EIB) 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.

Unless otherwise indicated. all the commitments and payments listed in this Communication are gross amounts. i.e. no decommitments or recoveries have been deducted. This approach is in line with that used for the general budget of the EU.

Introduction

The Commission and the EIB have updated their commitment and payment forecasts for 2008 and 2009 for each of the ACP[3] countries and the OCTs[4]. The payment forecasts in particular have been compiled with great care 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 8 of the Financial Regulation applicable to the 9th EDF and Article 7 of the Internal Agreement on the 10th EDF[5]. these forecasts will be adjusted in the October 2008 Communication.

The graph below shows the general trend in commitments and payments. including projections for 2008 (Commission and EIB). It clearly shows the structural upward trend of payments since 2000.

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- - Commitments; ― Payments

1. Implementation of the European Development Funds at 31 December 2007

1.1. Funds available at 31 December 2007

Annex 1 gives an overview of the funds available to the Commission and EIB under the EDFs (7th to 9th). commitments and payments at the end of 2007. It shows clearly that the Commission has achieved its goal of committing all funds available under the 9th EDF and sums transferred from previous EDFs. In line with the rules. several tens of millions of euro remain to be committed between 1 January 2008 and the entry into force of the 10th EDF.

Unlike the figures in the rest of this document. the figures given above and in Annex 1 are “net” figures. Decommitments have therefore been deducted from commitments and recoveries from payments. This is necessary to determine the true amount of available funds.

1.2. Implementation of the EDFs in 2007 (commitments . payments and financial situation)

Annex 2 gives a breakdown of commitments and payments in 2007 by instrument and compares them with the 2006 figures.

Annexes 3 and 4 show actual implementation in 2007 compared with the forecasts made in October 2007[6]. The Commission was unable to make all the payments forecast owing to insufficient financial contributions by the Member States. However. at EUR 2 920 million payments were once again higher than ever before.

Annex 5 shows the financial situation and the projections made in October 2007. The table does not include payments made under Stabex because these were made from separate accounts to which Member States had already contributed.

The cash balance available to the Commission at the end of 2007 was only EUR 57 million[7]. This was the lowest ever cash balance. The EIB's cash balance was EUR 77 million. compared with a forecast of EUR 6 million.

2. Financial implementation forecasts for 2008 and 2009

The new forecasts are set out in Annexes 3 to 6.

The new forecasts for 2008 put the Commission's needs at EUR 3 000 million and the EIB's at EUR 305 million. These figures are based on the assumption that the 10th EDF comes on stream in early summer 2008. The sums decided by the Council in December 2007[8] for 2008 are EUR 2 857 million for the Commission and EUR 343 million for the EIB.

Contributions for 2009 are forecast at EUR 3 100 million for the Commission and EUR 370 million for the EIB. It should be stressed that these figures are just 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 2008 Communication.

The Commission urges the Council to make available all the contributions necessary to guarantee proper implementation of the EDF in 2008 and 2009 .

ANNEX 1: Consolidated situation of the EDFs (7th to 9th) for the ACP countries and OCTsat 31 December 2007 ( EUR million )

Allocations | Commitments | Payments |

COMMISSION |

7th and 8th EDFs |

National and Local programmes | 10 659 | 10 659 | 9 748 |

Interest-rate subsidies | 298 | 298 | 270 |

Risk capital | 1 921 | 1 921 | 1 778 |

Structural adjustment facility | 2 647 | 2 647 | 2 645 |

Emergency Assistance | 542 | 542 | 542 |

Aid to refugees | 195 | 195 | 184 |

Stabex | 2 423 | 2 423 | 2 314 |

Mining products | 547 | 547 | 489 |

Debt relief | 1 100 | 1 100 | 1 086 |

Cost of implementation | 37 | 37 | 33 |

Unexpended balances 5th EDF | 318 | 318 | 310 |

Subtotal | 20 687 | 20 687 | 19 400 |

9th EDF national and interim measures |

Envelope A | 10 213 | 10 195 | 4 711 |

Envelope B | 1 570 | 1 570 | 754 |

Regional allocation | 979 | 979 | 220 |

Intra-ACP allocation | 3 314 | 3 312 | 1 183 |

CDE[9]. CTA[10] and JPA[11] | 176 | 176 | 134 |

Studies and TA[12] for OCTs | 2 | 2 | 0 |

Cost of implementation | 125 | 125 | 120 |

DRC special assistance | 109 | 108 | 105 |

Miscellaneous revenue | 89 | 60 | 33 |

Voluntary contributions to the Peace Facility | 39 | 39 | 29 |

Unexpended balances 6th EDF | 26 | 26 | 10 |

Subtotal | 16 642 | 16 592 | 7 300 |

Total for the Commission | 37 329 | 37 279 | 26 700 |

EIB (9th EDF) |

Interest-rate subsidies | 188 | 113 | 92 |

Investment Facility | 2 057 | 1 967 | 734 |

Total for the EIB | 2245 | 2 080 | 826 |

EDF TOTAL | 39 574 | 39 359 | 27 526 |

The figures in this table are net figures. i.e. decommitments have been deducted from commitments and recoveries from payments.

ANNEX 2 Breakdown of expenditure by instrument for the years 2006 and 2007

EUR million

2006 | 2007 |

commitments | payments | commitments | payments |

COMMISSION |

7th and 8th EDFs |

Indicative Programmes | - | 612.0 | - | 388.3 |

Interest-rate subsidies | - | 0.6 | - | 1.5 |

Emergency assistance | - | 0.3 | - | 0 |

Aid to refugees | - | 8.0 | - | 1.8 |

Risk capital | - | 63.1 | - | 57.8 |

Mining products | - | 16.0 | - | 23.4 |

Stabex | 9.1 | 189.5 | 6.2 | 98.4 |

Structural adjustment facility | - | 1.1 | - | 0.1 |

Unexpended balances 5th EDF | - | 1.1 | - | 0.4 |

Cost of implementation | - | 0.7 | - | 0.8 |

Sub-total | 9.1 | 893.2 | 6.2 | 572.3 |

9th EDF + transitional measures |

Envelope A | 1 744.1 | 1 240.9 | 1 981.1 | 1 641.7 |

Envelope B | 353.7 | 154.0 | 295.6 | 217.2 |

Regional projects | 222.8 | 49.6 | 251.9 | 135.8 |

Intra-ACP projects | 1 037.0 | 431.2 | 946.5 | 234.8 |

Cost of implementation | 21.0 | 5.9 | 48.6 | 38.2 |

DRC special assistance | 16.2 | 15.9 | 0.3 | 0.2 |

Voluntary contributions to the Peace Facility | - | - | 39.2 | 29.2 |

Unexpended balances 6th EDF | - | 4.5 | - | 6.7 |

Other | 4.0 | 31.0 | 67.0 | 43.4 |

Sub-total | 3 398.7 | 1 933.0 | 3 630.2 | 2 347.2 |

Total for the Commission | 3 407.9 | 2 826.2 | 3 636.3 | 2 919.5 |

EIB (9th EDF) |

Investment Facility + interest-rate subsidies | 628.8 | 236.0 | 279.0 | 332.5 |

EDF TOTAL | 4 036.7 | 3 062.2 | 3 915.3 | 3 252.0 |

ANNEX 3: Commitments and payments made in 2007 and forecast for 2008 and 2009

EUR million

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ANNEX 4: Commitments and payments made in 2007 and forecast for 2008 and 2009

EUR million

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ANNEX 5 – Financial Situation in 2007 and forecast for 2008 and 2009 – excluding Stabex*

(EUR million)

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ANNEX 6 – Contributions to the EDF for 2008 (EUR)

COUNTRY | SCALE | 1st tranche | 2nd tranche | 3rd tranche | TOTAL |

paid to | paid to | payable to | payable to | payable to | payable to | for all |

% | EIB | Commission | EIB | Commission | EIB | Commission | tranches |

GERMANY | 23.36 | 39 712 000 | 382 512 000 | 24 528 000 | 233 600 000 | 7 008 000 | 85 264 000 | 772 624 000 |

BELGIUM | 3.92 | 6 664 000 | 63 764 000 | 4 116 000 | 39 200 000 | 1 176 000 | 14 308 000 | 129 228 000 |

DENMARK | 2.14 | 3 638 000 | 35 213 000 | 2 247 000 | 21 400 000 | 642 000 | 7 811 000 | 70 951 000 |

SPAIN | 5.84 | 9 928 000 | 95 628 000 | 6 132 000 | 58 400 000 | 1 752 000 | 21 316 000 | 193 156 000 |

FRANCE | 24.30 | 41 310 000 | 397 185 000 | 25 515 000 | 243 000 000 | 7 290 000 | 88 695 000 | 802 995 000 |

GREECE | 1.25 | 2 125 000 | 19 937 500 | 1 312 500 | 12 500 000 | 375 000 | 4 562 500 | 40 812 500 |

IRELAND | 0.62 | 1 054 000 | 10 529 000 | 651 000 | 6 200 000 | 186 000 | 2 263 000 | 20 883 000 |

ITALY | 12.54 | 21 318 000 | 204 893 000 | 13 167 000 | 125 400 000 | 3 762 000 | 45 771 000 | 414 311 000 |

LUXEMBOURG | 0.29 | 493 000 | 4 505 500 | 304 500 | 2 900 000 | 87 000 | 1 058 500 | 9 348 500 |

NETHERLANDS | 5.22 | 8 874 000 | 85 099 000 | 5 481 000 | 52 200 000 | 1 566 000 | 19 053 000 | 172 273 000 |

PORTUGAL | 0.97 | 1 649 000 | 16 311 500 | 1 018 500 | 9 700 000 | 291 000 | 3 540 500 | 32 510 500 |

UNITED KINGDOM | 12.69 | 21 573 000 | 208 085 500 | 13 324 500 | 126 900 000 | 3 807 000 | 46 318 500 | 420 008 500 |

AUSTRIA | 2.65 | 4 505 000 | 43 067 500 | 2 782 500 | 26 500 000 | 795 000 | 9 672 500 | 87 322 500 |

FINLAND | 1.48 | 2 516 000 | 24 166 000 | 1 554 000 | 14 800 000 | 444 000 | 5 402 000 | 48 882 000 |

SWEDEN | 2.73 | 4 641 000 | 44 103 500 | 2 866 500 | 27 300 000 | 819 000 | 9 964 500 | 89 694 500 |

TOTAL | 100.00 | 170 000 000 | 1 635 000 000 | 105 000 000 | 1 000 000 000 | 30 000 000 | 365 000 000 | 3 305 000 000 |

[1] OJ L 78, 19.03.2008, p. 1.

[2] OJ L 83, 1.4.2003, p. 1.

[3] African, Caribbean and Pacific States.

[4] Overseas countries and territories.

[5] OJ L 247, 09.09.2006, p. 32.

[6] COM(2007) 599 final of 5 October 2007.

[7] Excluding EUR 211 million in 2008 contributions paid in at the end of December 2007.

[8] Council Decision of 20 December 2007 laying down, for the financial year 2008, the schedule of calls for contributions from the Member States to the 9th EDF.

[9] Centre for the Development of Enterprise.

[10] Technical Centre for Agricultural and Rural Cooperation.

[11] Joint Parliamentary Assembly.

[12] Technical assistance.