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 2012 to 2013, 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 2011 and the forecasts of implementation for 2012 to 2014.

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 2012 and 2013 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 2012 communication.

The graph below shows the general trend in commitments and payments, including projections for 2012 - 2013 (Commission and EIB).

Gross commitments and payments: trend 1998-2013 (Million EUROS)[7]

3. Implementation of the European Development Funds at 31 December 2011 (commitments, payments and financial situation)

The annexes 1, 2 and 3 show respectively the actual commitments, payments and financial situation recorded in 2011 compared with the forecasts made in October 2011[8], and the projections made for 2012 and 2013.

At year end 2011, around 63% of the 10th EDF had been committed, on track to meet our target to commit the 10th EDF before the end of 2013.

4. Financial forecasts for 2012 – 2014[9]

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

5. Financial implementation forecasts for 2012 and 2013

The new forecasts are set out in Annexes 1 to 3.

The Member States contributions to the EDF for 2012 were decided by the Council in October 2011[10], at EUR 3 600 million for the Commission and EUR 280 million for the EIB. The new 2012 forecasts confirm the EIB's treasury needs of EUR 280 million. Due to lower than forecasted payments in 2011 and the fact that a considerable cash balance was carried over from 2010, the Commission's believes that it is justified to reduce its request to EUR 2 600 million.

The new ceiling proposed for the Member States contributions in 2013 amounts to EUR 3 300 million for the Commission and EUR 250 million for the EIB [11].

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.

Annex 4. Contributions to the EDF for 2012 by Member State (EUR)

[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 2012-2013, forecasted amounts

[8] COM(2011) 692 final of 26.10.2011.

[9] As the financial framework for the period after 2013 has not been agreed and is expected to have a material impact on the implementation figures, amounts for 2014 are given p.m. and no forecasts are given for the year 2015.

[10] Council Decision of 18 November 2011– Council document 16965/11.

[11] Council Decision of 18 November 2011– Council document 16965/11.