EUROPEAN COMMISSION Brussels, 1.7.2022 COM(2022) 350 final 2022/0211(BUD) DRAFT AMENDING BUDGET No 4

TO THE GENERAL BUDGET 2022



Update of revenue (own resources) and other technical adjustments



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, –Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the European Union, entered into force on 1 June 2021, –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 (…), and in particular Article 44 thereof, –the general budget of the European Union for the financial year 2022, as adopted on 24 November 2021, –amending budget No°1/2022, adopted on 5 April 2022, –draft amending budget No°2/2022, adopted on 13 April 2022, –amending budget No°2/2022, adopted on 23 June 2022, The European Commission hereby presents to the European Parliament and to the Council Draft Amending Budget No 4 to the 2022 budget. CHANGES TO THE STATEMENT OF REVENUE AND EXPENDITURE BY SECTION The changes to the general statement of revenue and to the individual section III are available on EUR-Lex ( https://eur-lex.europa.eu/budget/www/index-en.htm ). EXPLANATORY MEMORANDUM 1.Introduction The main purpose of Draft Amending Budget (DAB) No 4 for the year 2022 is to update the revenue side of the budget to take account of the latest developments: –the updated own resources forecasts for the 2022 budget agreed by the Advisory Committee on Own Resources (ACOR) on 23 May 2022. This update is typically presented shortly after the ACOR forecast meeting, in line with the Member States’ expectations that the ACOR updates are budgeted as soon as possible; –to update other revenues such as the United Kingdom contribution, fines and other. Additionally, DAB 4/2022 includes two specific adjustments related to expenditure:

– adjustment of the budgetary nomenclature following the new possibilities for Member States to transfer resources of their initial European Regional Development Fund (ERDF), Cohesion Fund (CF), European Social Fund Plus (ESF+) and European Maritime, Fisheries and Aquaculture Fund (EMFAF) allocations to the REPowerEU chapter of the Recovery and Resilience Facility (RRF) following the Commission proposal for REPowerEU on 18 May 2022; – the additional staff requested for Eurojust following the extension of its mandate to collect and preserve war crime evidence. The related appropriations in 2022 will be financed through internal redeployment, and therefore no additional financing is required for this purpose.

2. Update of revenue 2.1 Overall impact of DAB 4/2022 on the distribution of total own resources payments between Member States The revised forecasts for 2022 were agreed in the 185th ACOR meeting on 23 May 2022. The adjustments of the revenue side of the budget are required to update the estimates for Traditional Own Resources (TOR) as well as for the own resources based on the Value Added Tax (VAT), the non-recycled Plastic Packaging Waste (PPW) and Gross National Income (GNI), taking into account the Spring economic forecasts (see section 2.2). Moreover, the amount of other revenues is updated to take into account the revised United Kingdom contribution, definitely cashed fines and penalty payments until June 2022, as well as the contribution from the European Coal and Steel Community (ECSC) in relation to the reimbursement of the United Kingdom’s share of the net assets to the United Kingdom (see sections 2.3, 2.4 and 2.5 respectively). The overall impact of all 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 initial adopted Budget 2022, as included in DAB 3/2022 , and finally as included in this DAB 4/2022. Distribution of total own resources payments by Member States (in million EUR) Budget 2022 DAB 3/2022 DAB 4/2022 (1) (2) (3) BE 6 951,0 6 847,3 6 888,9 BG 773,0 759,1 823,2 CZ 2 530,1 2 482,2 2 649,0 DK 3 369,8 3 298,0 3 266,8 DE 37 331,5 36 558,9 36 182,0 EE 349,6 343,5 365,5 IE 3 282,2 3 218,0 3 508,0 EL 2 026,3 1 988,6 2 002,8 ES 14 394,3 14 126,9 13 582,5 FR 27 993,8 27 461,4 26 984,5 HR 613,4 601,7 607,7 IT 19 908,0 19 527,5 19 747,6 CY 247,2 242,6 243,0 LV 370,9 364,1 384,1 LT 619,8 609,0 648,4 LU 486,2 476,6 551,3 HU 1 800,2 1 768,6 1 822,0 MT 152,7 149,9 154,7 NL 9 815,3 9 635,7 9 250,0 AT 3 764,7 3 679,8 3 617,0 PL 6 713,9 6 598,6 7 244,6 PT 2 515,2 2 469,4 2 387,8 RO 2 585,6 2 535,2 2 634,9 SI 585,0 574,6 636,2 SK 1 074,1 1 053,2 1 057,6 FI 2 657,5 2 604,0 2 526,3 SE 4 789,3 4 675,4 4 656,0 EU 157 700,7 154 649,6 154 422,3 2.2 Revision of the forecasts of TOR, VAT, PPW and GNI bases In line with Article 44(1)(b) of the Financial Regulation , the Commission proposes to revise the financing of the budget on the basis of more recent economic forecasts. According to the established practice, the revised revenue forecasts are agreed with the Member States in the ACOR forecast procedure. The revision concerns the forecast of TOR to be paid to the budget in 2022 as well as the forecast of the 2022 VAT, PPW and GNI bases. The forecast included in the 2022 budget was agreed in the 181st ACOR meeting, which was held on 26 May 2021 and in the 183rd ACOR meeting, which was held in written procedure on 3-9 September 2021. The revision in the present DAB 4/2022 takes into account the agreed forecasts of the 185th ACOR meeting based on ORD 2020. 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. The Commission’s revenue projections are based on the Commission 2022 Spring economic forecast , which revises the growth outlook downwards, while inflation is projected to be higher. The war in Ukraine exacerbates headwinds to growth that were previously expected to subside: shockwaves from Russia’s war of aggression against Ukraine are expected to test the EU economic resilience. Output is nevertheless projected to keep expanding throughout the forecast horizon, thanks to fading pandemic-related containment measures and the tailwinds of the strong policy action taken during the COVID-19 pandemic. Real GDP growth in both the EU and the euro area is now expected at 2,7 % in 2022, down from 4,4 % projected in the Spring 2021 forecast. The economic scenario underlying the 2022 budget is broadly confirmed by the latest estimates: –Total customs duties to be collected in 2022, net of 25 % collection costs, are forecast at EUR 20 479,8 million, which represents an increase of 14,3 % compared with the forecast of EUR 17 912,6 million included in the 2022 budget. The Commission compared the results of the traditional ACOR forecast method (based on the forecast growth rates of extra-EU imports) with the results of the extrapolation method (based on the latest outturn data for collected customs duties, i.e. January – April 2022). The traditional method appears more suitable to capture the impact of current events than the extrapolation method. The latter method shows the impact of the war in Ukraine only as from May 2022. Therefore, extrapolated data based on the first four months is likely to overestimate the customs duties in this exceptional year. The results of the traditional method, based on the 2021 historical data adjusted by payments in relation to the enforcement strategy and the spring economic forecast, is expected to be better equipped to anticipate the impact of the recent events. Therefore, it was agreed in the ACOR meeting to base the revision of the 2022 TOR forecast on the traditional forecast methodology. This is better suited to ensure sound budgetary management in a context of high economic uncertainties and potential disruptions in trade patterns. –The total 2022 EU uncapped VAT base is now forecast at EUR 6 588 601,0 million, which represents an increase of 3,2 % compared to the May 2021 forecast of EUR 6 384 062,6 million. The total 2022 EU capped VAT base is forecast at EUR 6 571 411,1 million, which represents an increase of 3,4 % compared to the May 2021 forecast of EUR 6 357 129,3 million. The updated forecast takes into account the simplified definition of the VAT base as provided by ORD 2020. –The forecast of non-recycled PPW in the EU amounts to 8 840 522,1 tonnes in 2022, which is an increase of 5,4 % compared to the May 2021 forecast of 8 388 536,2 tonnes. The corresponding Member States contributions from the PPW is presented in Table 3 of the accompanying budgetary annex. –The total 2022 EU GNI base is forecast at EUR 15 493 666,4 million, which is an increase of 4,2 % compared to the May 2021 forecast of EUR 14 874 288,2 million.

The exchange rates of 31 December 2021 have been used for converting the forecast VAT and GNI bases in national currency into euro, for the eight Member States that are not members of the euro area. This avoids distortions, since this rate 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 609/2014 . The revised forecasts of TOR, uncapped VAT bases, PPW bases and GNI bases for 2022, as adopted at the 185th ACOR meeting, are set out in the following table:



Revised forecasts of TOR, VAT, PPW and GNI bases for 2022 Customs

(75 %) Uncapped VAT bases PPW bases GNI bases Capped

VAT bases EUR million tonnes EUR million BE 2 018,9 226 786,9 184 411,2 541 346,0 226 786,9 BG 117,1 37 169,6 82 439,8 73 840,7 36 920,4 CZ 359,1 108 871,2 104 626,6 256 037,5 108 871,2 DK 408,1 139 348,4 137 821,6 364 038,2 139 348,4 DE 4 412,8 1 612 525,1 1 721 224,8 3 928 198,8 1 612 525,1 EE 50,0 16 154,5 35 005,3 32 548,0 16 154,5 IE 409,9 107 700,5 245 919,9 345 299,9 107 700,5 EL 229,1 75 339,3 128 557,5 197 922,3 75 339,3 ES 1 509,9 605 080,7 800 251,7 1 306 998,1 605 080,7 FR 2 116,5 1 206 358,1 1 631 995,5 2 670 917,0 1 206 358,1 HR 44,4 34 803,3 41 326,5 60 584,3 30 292,2 IT 2 556,9 718 682,6 1 221 567,1 1 907 299,2 718 682,6 CY 27,5 18 036,1 9 161,1 23 546,2 11 773,1 LV 59,7 16 011,4 26 066,2 35 026,3 16 011,4 LT 130,8 23 222,1 27 400,1 58 255,4 23 222,1 LU 17,5 35 032,2 16 569,0 58 057,0 29 028,5 HU 232,6 67 033,3 291 860,1 158 678,8 67 033,3 MT 17,0 6 548,1 12 888,5 14 616,0 6 548,1 NL 2 932,9 415 077,5 221 683,0 920 162,2 415 077,5 AT 220,8 199 394,4 192 976,8 431 890,6 199 394,4 PL 1 162,5 304 676,1 852 340,9 616 480,8 304 676,1 PT 201,5 112 699,7 249 274,4 225 073,7 112 536,9 RO 229,3 83 454,2 319 372,8 262 454,9 83 454,2 SI 128,0 26 228,0 26 812,2 55 491,8 26 228,0 SK 116,0 41 629,6 64 029,3 104 789,5 41 629,6 FI 154,7 99 011,1 75 238,9 269 780,9 99 011,1 SE 616,3 251 727,0 119 701,3 574 332,3 251 727,0 EU 20 479,8 6 588 601,0 8 840 522,1 15 493 666,4 6 571 411,1 2.3 United Kingdom contribution The United Kingdom contribution is calculated based on Article 148 of the Agreement on the withdrawal of the United Kingdom from the European Union (the ‘Withdrawal Agreement’) and covers the United Kingdom’s share in the outstanding commitments prior to 2021 to be paid in 2022 as well as the United Kingdom’s share in the Union’s liabilities (such as pensions) and the contingent financial liabilities. The overall contribution of the United Kingdom also includes the amounts due to the United Kingdom related to own resources corrections and adjustments for financial years until 2021. The United Kingdom contribution is based on the United Kingdom’s share , which is calculated as the ratio between the own resources made available by the United Kingdom in the years 2014 to 2020 and the own resources made available during that period by all Member States including the United Kingdom. The United Kingdom’s share was adjusted in 2022 in accordance with Article 139 of the Withdrawal Agreement. The definitive share of the United Kingdom has been set at 12,431681219587700 %. The table below presents the elements of the estimated United Kingdom contribution that were already included in the April invoice as well as the elements to be included in the September invoice that are known at this stage. The revised amount of the United Kingdom contribution included in the DAB 4/2022 is calculated taking into account the payment modalities set out in Article 148 of the Withdrawal Agreement. It is therefore proposed to update the estimate introduced in the 2022 budget accordingly. Updated United Kingdom contribution in 2022 (in EUR) Reference to the Article of the Withdrawal agreement 2022 Total United Kingdom contribution in 2022, of which: 10 916 824 186 1. RAL prior 2021 (including net financial corrections) - due for payment in 2022 Art. 140 11 634 151 069 2. Union's liabilities/pensions* Art.142 264 967 111 3. Own resources corrections and adjustments, of which: -621 994 538 3.1 Surplus/deficit of 2020 Art.136(3)(a) -137 906 262 3.2 UK correction updates (2018-2019) Art.136 -497 215 183 3.3. VAT&GNI Art.136 31 674 986 3.4. TOR Art.136, Art. 140(4) -18 548 079 4. Fines Art.141 -90 166 074 5. Contingent liabilities, of which: -230 135 897 5.1 ELM, EFSI, EFSD, loans (Guarantee funds) Art.143 -162 744 118 5.2 Financial Instruments Art.144 -73 371 665 5.3 Legal cases (incl. fines) Art.147 5 979 886 6. ECSC net assets Art.145 -37 093 133 7. EIF investment Art.146 -6 687 829 8. Access to networks/systems/data bases** Art.34(2), Art. 50 and 53, Art. 62(2), Art. 63(1)(e), Art. 63(2), Art.99(3),Art. 100(2) 3 783 478 * - the amount of EUR 236 million will be entered in the EU budget as assigned revenues ** - to be entered in the EU budget as assigned revenues 2.4 Fines and penalty payments EUR 440,5 million of fines and penalty payments have been cashed from 1 January to 1 June 2022, of which: a)EUR 344 million of competition fines; b)EUR 93 million of penalty payments and lump sums imposed on Member States, which did not comply with judgments of the Court of Justice of the European Union on their failure to fulfil an obligation under the Treaties. c)EUR 0,6 million of interest connected with fines and penalty payments; d)EUR 2,8 million of other non-assigned fines and penalty payments. According to the provisions of Articles 141 of the Withdrawal Agreement, the United Kingdom is entitled to receive its share on an amount of EUR 281 million, included in the above list under items a, c and d.

It is therefore proposed to increase the initial forecasts introduced in the 2022 budget of EUR 101 million by EUR 339,5 million. The detail by line is shown in the table below. EUR Revenue line Name Budget 2022 DAB 4/2022 New amount 4 2 0 Fines in connection with the implementation of the rules on competition 100 000 000 244 178 944 344 178 944 4 2 1 Penalty payments and lump sums imposed on a Member State p.m. 92 892 916 92 892 916 4 2 4 Interest connected with fines and penalty payments 1 000 000 - 382 925 617 075 4 2 9 Other non-assigned fines and penalty payments p.m. 2 822 779 2 822 779 Total 101 000 000 339 511 714 440 511 714 2.5 European Coal and Steel Community contribution According to Article 145 of the Withdrawal Agreement, the Union is liable to the United Kingdom for its share in the net assets of the ECSC in liquidation on 31 December 2020 (EUR 184 373 974). The related reimbursement will be made in five equal annual instalments (EUR 36 874 795) from 2021 to 2025. These reimbursements are fully compensated by the transfer of the United Kingdom’s share in the net assets of the ECSC to the Union’s budget in the form of annual contributions from 2021 to 2025. It is proposed to adjust the amount included in the revenue item (6 6 0 4) following the change in the United Kingdom’s share. The amount includes the difference between recalculated annual instalments and the first instalment paid in 2021 as well as the second instalment included in the 2022 budget. This contribution from the ECSC in liquidation aims to fully compensate the effects of the corresponding reductions accounted for in the contributions to the Union’s annual budget of the United Kingdom, as recorded under the item 6 6 0 2. EUR Revenue line Name Budget 2022 DAB 4/2022 New amount 6 6 0 4 Contributions from the European Coal and Steel Community (ECSC) in liquidation 36 656 456 436 677 37 093 133 Total 37 093 133 2.6 Impact on the GNI-based own resource contribution for 2022 Taking into account the revised forecasts for TOR, the simplified VAT base, the own resource based on non-recycled PPW, the amount of own resources other than GNI has increased by EUR 3 573 896 841. Together with the increase of other revenues by EUR 227 375 055, this decreases the GNI contribution by EUR 3 801 271 896 compared to DAB 3/2022. In order to respect the principle of equilibrium applicable to the budget of the European Union enshrined in Article 310(1) TFEU, the uniform rate to be applied to the sum of all Member States’ GNI has to be recalculated taking into account all other revenue. The recalculated uniform rate for the GNI-based own resource is fixed as follows: Uniform rate to be applied on 1 % of GNI = (total expenditure – other revenue – total net amount of TOR – VAT-based own resource – non-recycled PPW-based own resource contributions) / 1 % of GNI Uniform rate: = (170 779 320 555 – 16 357 049 309 – 20 479 800 000 – 19 714 233 150 – 6 361 164 480) / 154 936 664 000 = 0,696201085212471 The revised GNI-based own resources contributions considering the new uniform rate are set out in the following table: Budgetary year 2022 (in EUR) Member State 1 % of GNI base used for DAB 3/2022 Uniform rate of GNI-based own resource (in %) according to DAB 3/2022 1 % of GNI base (Agreed ACOR forecast) Uniform rate of GNI-based own resource (in %) according to DAB 4/2022 Difference in the GNI (1) (2) (3) (4) (5) = (3 x 4) - (1 x 2) BE 5 057 284 000 0.7507475 5 413 460 000 0.6962011 - 27 886 549 BG 676 847 000 738 407 000 5 938 568 CZ 2 333 452 000 2 560 375 000 30 702 619 DK 3 504 130 000 3 640 382 000 - 96 278 908 DE 37 668 693 000 39 281 988 000 - 931 514 097 EE 300 834 000 325 480 000 749 158 IE 3 126 811 000 3 452 999 000 56 536 137 EL 1 839 768 000 1 979 223 000 - 3 264 011 ES 13 038 037 000 13 069 981 000 - 688 938 613 FR 25 958 798 000 26 709 170 000 - 893 549 337 HR 570 769 000 605 843 000 - 6 714 841 IT 18 548 436 000 19 072 992 000 - 646 554 066 CY 223 606 000 235 462 000 - 3 942 744 LV 329 013 000 350 263 000 - 3 152 203 LT 527 188 000 582 554 000 9 789 659 LU 463 922 000 580 570 000 55 905 186 HU 1 543 676 000 1 586 788 000 - 54 187 356 MT 135 083 000 146 160 000 343 528 NL 8 753 474 000 9 201 622 000 - 165 469 424 AT 4 140 634 000 4 318 906 000 - 101 743 544 PL 5 622 802 000 6 164 808 000 70 641 524 PT 2 234 579 000 2 250 737 000 - 110 639 036 RO 2 456 853 000 2 624 549 000 - 17 262 364 SI 508 285 000 554 918 000 4 740 825 SK 1 019 441 000 1 047 895 000 - 35 797 137 FI 2 609 882 000 2 697 809 000 - 81 144 811 SE 5 550 585 000 5 743 323 000 - 168 580 059 Total 148 742 882 000 154 936 664 000 -3 801 271 896