ARCHIVES HISTORIQUES 
DE LA COMMISSION 
 
 
 
COLLECTION RELIEE DES 
DOCUMENTS "COM" 
 
 
 
 
COM (85) 0036 
 
 
 
Vol. 1985/0 015 
  
 
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 opening 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 file 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 2 43 vom  27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung m it Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION OF THE EUROPEAN COMMUNITIES
COM (85) 36 final  
Brussels, 21 February 1985
METHOD
FOR THE CALCULATION OF THE CORRECTION
provided for in Article 3 (3), (4) and (5)
of the amended proposal of 9 July 1984  
for a Council Decision on the Communities' system of own resources
(C o m m u n ic a tio n  f r o m  th e C o m m is s io n  to th e C o u n cil)
COM (85) 36 final

M E T H O D  Cotf .  y C
P R E P A R E D  B Y  T H E  C O M M IS S IO N  
F O R  T H E  C A L C U L A T IO N  O F  T H E  C O R R E C T IO N  
provided for In Article 3(35, (4) and (5)  
of the «m ended proposal of 9  July 1984  
for ■ Council Decision on the Communities’  system  of o w n  resources
I. C A L C U L A T IO N  O F  T H E  C O R R E C T IO N
According to the decisions taken at Fontainebleau/ "the basis for the  
correction 1» the gap between the share cf V A T  payments and tha ahare of  
expenditure allocated 1n accordance with the present criteria" (i.e . the  
criteria used hitherto for calculating Mem ber states' net balances).
1  *  The United Kingdom'· share of V A T  payments
This share w ill be calculated from actuaJr-VA-T-payments and any 6NP-bastd  
financial contributions/ including balancée/ adjustments and, correct ions  
in respect of V A T  and the GNP-based fin a n c ia l·contributions of previous  
years which would have been paid if the uniform rate had bean applied  
(see, for example/ the revenue and expenditure account and balance sheet/  
Vol. 1, 1983/ Table l, page 20/ column 9, which is contained in Annex 1).
IfclfilfSiSSj.ISlDBli !  The United Kingdom's share of V A T  payments is 20X.
2. The United Kingdom's share of expenditure allocated "in accordance,with  
the present c rite ria * 1 "  '
(a) Definition of expenditure
Utilisation of the year1· appropriations for payments
i
fiaiiBifi: 1985 expenditure ■ payments In 1985 against the new 1985
appropriations for payments plus payments in 1986 against (new) 1985  
appropriations carried over to 1986.
20‘d

2
(b) D e f i n i t e  of allo cated  expenditure
For the d e fin itio n  of allo cated  expenditure a d is tin c tio n  should be made  
between?
-  the "present c r i t e r i a ” s r? d
-  the way 1n which they ir e  applied.
Under the present c r it e r ia , e l l  expenditure, except th *t ruled out fo r  
reasons of p rin c ip le 1, is allo cated  between the Member States, The la tte r  
category -  expenditure ruled out fo r reeeons of p rin c ip le  -  conaiata of  
development cooperation ap p ro p riatio n », which, i t  ia assumed, go to  
non-member countries.
H ith e rto , th is  p rin c ip le  ha· been applied in auch a way (saa Table 1  In Annex 2) as  
to exclude certain  other expenditure, f i r s t  of a ll beceuia of the p ra c tic a l  
d if f ic u lt ie s  in providing ·  quick breakdown of »0»· re la tiv e ly  in s ig n ific a n t  
budget headings and aubsequently in  order to ensure some co n tin u ity in the  
basic fig u res; the ad hoc solutions adopted by the Council fo r 1982 and  
1983 followed on from the conclusions of 30 May 1980.
A  sim p listic approach was adopted for allocating the Communities'
edminiat native expenditure: according to the inform ation a v a ila b le ,
the Commission's expenditure for the budget headings lis te d  in Tabla 1  were
mainly allo cated to Belgium and Luxembourg. The Council's expenditure waa
a ttrib u te d  to Belgium, and th at of P arliam ent, the Court of Auditors and , «
the Court of Justice mainly to Luxembourg.
A s fo r the fu tu re , the fin a l o b jective should b · to apply the c r ite r ia  1n  
f u l l ,  i .e .  to elim inate tha exception·'m ade fo r p ra c tic a l .reasons.
The fin a l o b jective w ill be achieved as rap id ly as possible, as set  
out in Table 2 in Annex 3:
-  for chapters in the f i r s t  column: immediately, th at i i  when tha  
breakdown of expenditure for 1985 is calculated;
-  for chapters in the second column: gradu ally.
In past (fig u res for 1980, 1981, 1982 and 1983> compensation to tha  
UnJ*  ■  ‘  Kingdom granted 1n the form of sp e cific expenditure was also  
excluded on p rin c ip le .

-  3 -
The n o n -illo cated  expenditure wiLl then be Limited to those activitiee 
whicb ere excluded on p rin c ip le i
- development cooperatlon end
-  lim H a r measures whlch w lll be excluded by Couneil decielen.
ThiB Is the only approach whlch appeert to eomply f u lly  w1th the Fontainebleau  
Council's statement that "expenditure p o llcy ie u ltim a te ly  the eeeentlal  
meens of resolvlng the queation of budgetary imbaLances".
The total appropriationa involved at the varioue etages of implementatlon  
of the "preeent" c r ite r ie  are eet out in the ta b lt in Annex 4.
Ibl& Ë!il£Él.t£$Q !Q iS: AlLocated expenditure to ta le  22 000 m illio n  ECU, of  
wMcn 2 860 m illio n  E C U  ie for the United Kingdom.
(c) The United Kingdom's share of allo eated  expenditure
In the th e o re tie a l example,2 8602T&ÖÜ- 13X.
3. Percentage d ifferen ce between the United Kingdom'i share of VAT payment!
end its  share of a llo c 'e te i expendlture T A r H c T r a H W b y t W  ------------ ----------
In
 the th e o re tie e l example, 20 -  15 ■  7X,
4. Absolute d ifferen ce (A rtic le  3 ( 3 ) ( b ) ( i 1))
In the th e o re tie e l exemple, 7X of to ta l allo eated  expenditure, 1.e.
7% of 22 000 m illio n  ECU *  1  540 m illio n  ECU.
5. Correction (A rtic le  3<3)<b)(111>>
The correction is made by m u ltip lyin g  the absolute d ifferen ce by 0 .6 6 .
The correction in the th e o re tie e l example 1l thue:
0.66 x  1  540 ■  1  016.4 m illio n  ECU.

-  4 -
II. E N T R Y  O P  T H E  C O R R E C T IO N  IN T H E  B U D G E T ! F IN A N C IN G
In p rin c ip le , the correction 1· entered in the budget fo r the n ett  
fin e n c ie l ye»r.
1, Correction in fevour Of the United Kingdom
(a) Correction in m illio n  E C U
The entry in the budget w ill tik e  piece in e number of stage*.
For the correction fo r 1985 the procedure w ill be at fo llo w ·:
-  the prelim inary d ra ft budget fo r 1986 w ill include an i n i t i a l  
asaessment of the correction due. At th ie  p o in t, the United Kingdom’ ·  
VAT ahare for 1985 w ill re la te  to that year only, t in e · the balance»  
and correction» fo r previou» years w ill » t i l l  not be known. The  
United Kingdom's share of the carryovers from 1985 to 1986 w ill
also have to be estimated*
-  a prelim inary d ra ft amending budget "presented in September 1986  
could update the correction in lin e  with the inform ation then  
availab le on the 1985 VAT balances and correction« »nd the u t ilis a t io n  
of carryovers in the f ir s t  six or seven month» of 1986;
-  the fin a l c a lc u la tio n  wilL havt to be made when the carryover»  
from 1985 to 1986 hav· a ll been used, i . e .  by 1  June 1987.
The resu ltin g  »djustments will be incorporated in a  prelim inary  
d r if t  »mending budget fo r 1987 pretented in September 1987,
(b) Correction to the uniform VAT rate
The »mount of the correction 1» divided by IX of the United Kingdom's  
VAT base.
Theoretical example: 1f IX of the United Kingdom’ s  1986 base wos
3 S Q O  m illio n  ECU, the r n u l t  would be 1  016.4 ■  0.2904%.
3 506
The VAT rate applicable to the United Kingdom would thus be equal  
to the uniform rate lee» 0.2904%.

-  5 ■
2. Financing, V A T  rates applicable to the other Member States
Th· corraction 1 b financad by adjusting t h · VAT rates applicable  
to the other Member S tates.
F irs t of a l l ,  the share of the other Member States in Vat payment·  
is calculated.
The share calculated in th is way fo r Germany Is then reduced to  
two th ir d · and th is  reduction -  the one th ird  deducted - is divided  
among the other Member States (apart from the United Kingdom) in  
proportion to th e ir VAT »here«. The resu lt is an adjusted VAT scale.
The ap p licatio n  of th is  scale to the correction in favour of the  
United Kingdom -  1  0 1 6 .A  m illio n  ECU in the example - gives the  
absolute amounts to be financed by the d iffe re n t Member States.
Dividing the absolute amounts by 1X of the VAT base of the Member  
States concerned gives the increase in the uniform rate resu ltin g  
for the other Member States from the correction in favour of the  
United Kingdom,
Annexes: 4

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Π )  Λ»1χ 6 γ«κ* β 6»*Μ>356<1 Ϋΐη3ηεΐ 31  ο ο η ΐΓ ΐίκ Λ ΐο η

Annex 2
Tibi« 1: Expenditure allocated in accordance with the method uetd
— | W W » — '*  I^ ^ ' I ^ W W W W I — S S a tM O S ^ p ^ ^ ty ” ^ * * — · ' I S»!M>I W  >■ ■hiiiM .iu g w o sEQip— in g ' i n ihithertofor a p p ly in g , the " p p a a e n is  criteria ^ 1
SECTORTitle, chapter, article, item
new
(from 1082)O ld
I. EAGGP Guarant·· «action, Including food aid  refunds (MCA* paid by exporters on behalf of  Importers ere reallocated to Importers)Part BtTTFTis 1 and 2 Titlee6 and 7
II. Improvement of structure· Part B:
1.
2 .
J .4.Social FundEAGGP Guidance Section  
e r o f quota section  EMS interest subsidiesChapters 60-82  Chapters 30-33, 46  Chapter 50 Article 520Chapters 50*52  Chapters 80*86  ArticLe 5SQ Article 570
III. Other operating appropriations allocated Part 0:
1.2.3.Research end investmentEnergyIndustryChapter 73 Chapter 70 Chapter 77Chapter 33 Chapter 32 Artie lei 370-376  H.e. Chapter 37  without transport)
IV. Refunds Part B:
1.
2 .
3 .10X of own resources paid over  
ems financial compensation  Refunds to Greece (Article 127 of  Act of Accession)Chapter 80 Articles 820, 821  Article 860ChapterArticleArticle40571 *;  , 490
V, Administrative expenditure (broken down)
1.Exptnditure relating to persons Part Ai Title 1Title 1working with the institution
2.Investments in immovable property, Part At Chapter 20 Chapter20 .  .rental of buildings snd associated  costs
3.Expenditure on date processing Part A: Chapter 21 Chapter21
4.Movable property and aesociattd Part A: Chapter 22 Chapter22costs, current administrative  expenditureChapter 23Chapter23»
5.European schools Part A: Article 289 Chapter289
6.European Centre for the Development Part 0: ArtUle‘632Item 3010of Vocational Training (Berlin) )
7.European Foundation for the Improvement  of Living end Working Conditions (Dublin)Part B: Article 641 Article359
8.Total expenditure by the other  institutions! Parliament, Council (end  ESC), Court of Juitice and Court of  Audi tors■
Total broken down by Member Stats-

A n n e x  3
T eb le 2 ; E xpenditure still to b e  allocated a n d  expenditure to b e  excluded, b y  ehipter
O riginal 1 9 8 4  b u d g et
8 C U
C hapters to b e  incorporated.________ ^Ditticuit o r 
im possibleto
allocateC h ap ters 
to b e
excluded o n  >  
prindnlaPart 
T it te 
C h ap terH e a d in g im m ed iately G radually
1 2 3 4
PART A
Title 2  
C h a p . 24
C h a p . 2 5  
C h a p . 2 6  
C h a p . 2 7  
C h a p . 2 8
C h a p . 2 9^ntertainm ent a n d  
representation expenses
E xpenditure o n  fo rm al a n d  
other m eetin g *
Studies
Publishing a n d  inform ation
Subsidies for balancing 
budget·
Subsidies a n d  financial 
contributions 3.473.20015.480.000 
12.000.000
36.740.000
34.320.6306 5 0 ,0 0 0
■
P A R T .8
1  Title 3%1chap■  3 6
Title 4  
C h a p . 4 0  
C h a p . 4 1  
C h a p . 4 2  
C h a p . 4 3  
C h a p *  4 5E xpenditure in  the 
agricultural sector
O rganization o f the m ark et 
Specific m easu res 
Fisheries ag reem en ts 
S ocial m easu res 
Im p ro v e m e n t o f structures’9,520.000 
4 2  .8 7 5 .0 0 0
250.000
30.500,0001.373,000
13.060.000
Title . 5  
C h a p , 3 1  
C h a p , 5 4  
C h a p . 5 5Specific m easu res 
O th e r operations 
M editerranean p ro g ra m m e s1 0 0 .0 0 0 .0 0 0  
3 2  .3 0 0,000 
10.000.000»
Title 6  
C h a p . 6 3
C h a p . 6 4 ' 
C h a p , 
C h a p . * *  
C h a p .E d u catio n  a n d  vocational 
training
S ocial protection 
E C S C
E n v i ro n m e n t 
C ultural action1 2 .2 66.000
62.500.000
2.U0.0001 5 .7 5 2 ,0 0 1 1  
16.2H.0002 7 5 .0 0 0 ,1 )0 0 ’
E xpenditure In  1 9 8 4  specifically for th* United Kingdom,

-  9 -
ECU
C hapters to b e  
IncorporatedDifficult or 
Im possible toC hapter· to 
b e  ex clu d edP art
Title
ChapterH e a d in g Im m ed iately G raduallyallocate o n
principle
1 2 3 4
jT itle 7  
! c h a p te r 7 0 E n e rg y  policy 456.000.0001
Chapter 7 1 N u clear safeguards 3.300.000
Chepter 7 2 R ee ee rch  a n d  technology 3.740.000
C h a p te r 7 5 Inform ation a n d  innovation 23.185.000
Chapter 7 8 T raniport 33.750.000 4 7 1 .0 0 0 .0 0 0 '1
T itle 8 R E P A Y M E N T S  A N D  A I D  T O  T H E  
M E M B E R  S T A T E S:
T itle 9 D E V E L O P M E N T  C O O P E R A T I O N 8 9 7 .1 4 8 .0 0 0
T I T L E  1 0 O T H E R  E X P E N D I T U R E,
A rticle 1 0 1 C o n tin g en cy  reetrvt 5 .0 0 Q .0 0 0 2
T O T A L 409.574.200 195.1 6 4 .6 5 0 5.650.000 2.099.148.O O P  · ;
E x p e n d itu re in  1 9 8 4  specifically for the U n ited  K in g d o m  a n d  G e rm a n y .
'T h i s  appropriation w ill either b e  transferred to another b u d g et beading, in  w h ic h  case 
it w ill b e  included with that expenditure a n d  b ro k en  d o w n  b y  M e m b e r  state if the original 
ex p en d itu re 1 » , o r it w ill lapse.

- 10 -
A n n e x  4
Definitio n  o f at located expenditure *  total appropriations In v o lv ed  
at the various stages o f application o f the "preeent criteria"
H E A P I N GT otal appropriations for p a y m e n ts 
in original 1 9 8 4  budget1
m illion E C U %
A .  E xpenditure allocated according to 
present criteria
I. A a  applied hitherto (for b u d g et 
headings concerned, see T a b le 1 ) 2 2  651.9 8 9 .3
II. C hapters w h ic h  could b e  included 
in allocated expenditure w ithout 
difficulty (see T ab le 2 , c o lu m n  1 ) 4 0 9 ,6 1 .6
III. C hapters w h ic h  will b e  incorporated 
gradually in  allocattd expenditure 
(see T a b le 2, c a l.u m n  2) 1 9 5 .2 0.8
_ _
IV . T otal future "allocated expenditure"' 2 3  2 5 6 .7 91.7
V , H ea d in g s w h ic h  it w o u ld  b e  v ery  
difficult or im possible to include 5.6 (0.02)
B . E xpenditure excluded b n  principle
D e v e lo p m e n t cooperation (Title 9 ) 8 9 7 .1 3 .5
Specific expenditure for the 
U n ited  K in g d o m  a n d  G e rm a n y  
(see T a b le  2, c o lu m n  4 > 1  202.0 4.8
c, g r a n d  t o t a l
-------------------- --------------------------------------- l2 5
 3 6 1 .4 1 0 0 .0
■  «
—--------  ·
O J
 L  1 2 , 1 6  January 1 9 8 4 .