EUROPEAN COMMISSION Brussels, 9.10.2017 COM(2017) 597 final DRAFT AMENDING BUDGET No 6

TO THE GENERAL BUDGET 2017 Reduction of payment and commitment appropriations in line with updated forecasts of expenditure and update of revenue (own resources and fines)



The overall reduction (EUR 7 719,7 million) in the level of payment appropriations requested in this DAB mainly concerns heading 1b and to a lesser extent headings 2, 3, 4 and the European Union Solidarity Fund ("EUSF"). 2.1 Heading 1b – Economic, social and territorial cohesion The Commission proposes a decrease of EUR 5,9 billion in payment appropriations for the European Structural and Investment funds (ESIF) under heading 1b. This reduction results from updated forecasts indicating payment needs lower than those originally planned in the 2017 budget for the 2014-2020 programming period.



All operational programmes for this period were adopted before the end of 2015. However, the overall level of interim payments in 2017 for these programmes will be lower than initially budgeted, as confirmed by the latest Member States forecasts (July 2017) which have decreased by around EUR 6 billion (-16 %) relative to the forecasts of January 2017. The Commission's analysis of forecasts provided by Member States also includes adjustments in view of recurrent historical over-estimation. These adjustments were made with a prudent approach and taking account of the persistent error rate of the Member States' forecast observed in recent years. Furthermore, additional elements have been considered such as the lack of regulatory incentives to accelerate the claim submission due to the more relaxed automatic decommitment rules ( low 'N+3' pressure) and the recurrence of a "normal" backlog of payment applications arriving too late to be paid within the year. Implementation delays continue to be observed in relation to the 2014-2020 operational programmes. They are mainly attributed to the lengthy designation process of national authorities (designation for 62 operational programmes, or 11 % of all programmes, still needs to be notified to the Commission), which has translated into slower-than-expected implementation in terms of interim payment claims received despite the reported progress in project selection on the ground. The reduction in payment appropriations is proposed for the following budget articles and items. Budget line Name Payment appropriations 04 02 60 European Social Fund — Less developed regions — Investment for growth and jobs goal -667 462 307 04 02 61 European Social Fund — Transition regions — Investment for growth and jobs goal -148 720 085 04 02 62 European Social Fund — More developed regions — Investment for growth and jobs goal -333 817 608 13 03 60 European Regional Development Fund (ERDF) — Less developed regions — Investment for growth and jobs goal -3 441 410 203 13 03 61 European Regional Development Fund (ERDF) — Transition regions — Investment for growth and jobs goal -491 788 711 13 03 62 European Regional Development Fund (ERDF) — More developed regions — Investment for growth and jobs goal -510 253 467 13 03 64 01 European Regional Development Fund (ERDF) — European territorial cooperation -257 368 301 13 05 03 01 Completion of cross-border cooperation (CBC) — Contribution from Subheading 1b -15 422 489 13 05 63 01 Cross-border cooperation (CBC) — Contribution from Heading 1b -21 988 054 22 04 52 Cross-border cooperation (CBC) — Contribution from Heading 1b (Regional policy) -2 512 986 Total -5 890 744 211 The Commission has recurrently highlighted this issue and expressed its readiness to provide assistance to Member States to ensure that implementation accelerates. In July, letters co-signed by four Commissioners were sent to Member States, alerting them to the worryingly low level of implementation and urging them to remove the bottlenecks without further delay. 2.2 Heading 2 – Sustainable Growth: Natural resources 2.2.1 European Agricultural Fund for Rural Development (EAFRD) The payment appropriations available on budget item 05 04 05 01 were initially intended for the closure payments of the EAFRD 2007-2013 programmes. However, most of these programmes were closed and paid at the end of 2016 as additional payment appropriations were made available for this purpose in 2016 from the end-of-the year transfer and from the EAFRD 2014-2020 budget line. As a result, the needs for closure payments in 2017 are lower and an amount of EUR 780 million may be released. Further to the cancellation of certain actions, a EUR 1,5 million reduction of the commitment appropriations on budget item 05 04 60 02 is also proposed. Budget line Name Commitment appropriations Payment appropriations 05 04 05 01 Rural development programmes - -780 000 000 05 04 60 02 Operational technical assistance -1 500 000 - Total -1 500 000 -780 000 000 2.2.2 Compulsory contributions to regional fisheries management organisations and other international organisations and Sustainable Fisheries Agreements On the basis of an updated analysis of the state of play of the negotiations for Sustainable Fisheries Partnership Agreements, EUR 11,2 million in commitment appropriations and EUR 10,4 million in payment appropriations may be released from the reserve line (budget article 40 02 41). Furthermore, EUR 0,2 million, in both commitment and payment appropriations, may be released from the compulsory contributions to international bodies active in the field of Maritime Affairs and Fisheries (budget article 11 03 02). Budget line Name Commitment appropriations Payment appropriations 11 03 02 Promoting sustainable development for fisheries management and marine governance in line with the CFP objectives (Compulsory contributions to international bodies) -207 268 -207 268 40 02 41 Differentiated appropriations (Reserve for budget article 11 03 01 – Establishing a governance framework for fishing activities carried out by Union fishing vessels in third country waters) -11 166 522 -10 361 522 Total -11 373 790 -10 568 790 2.2.3 European Agricultural Guarantee Fund (EAGF) Further to the cancellation of certain actions, it is proposed to decrease the level of commitment and payment appropriations of the budget item 05 01 04 01 and budget article 05 08 09.

Budget line Name Commitment appropriations Payment appropriations 05 01 04 01 Support expenditure for the European Agricultural Guarantee Fund (EAGF) – Non-operational technical assistance -900 000 -900 000 05 08 09 European Agricultural Guarantee Fund (EAGF) – Operational technical assistance -1 000 000 -1 000 000 Total -1 900 000 -1 900 000 2.2.4 Decentralised agencies (ECHA-biocides) The fee income from industry of the Biocides activities of the European Chemicals Agency (ECHA) in Helsinki is expected to be higher than initially estimated by EUR 0,6 million. As a result, the contribution from the EU budget may be reduced accordingly, in both commitment and payment appropriations. Budget line Name Commitment appropriations Payment appropriations 17 04 07 European Chemicals Agency — Activities in the field of biocides legislation -560 000 -560 000 Total -560 000 -560 000



2.3 Heading 3 – Security and Citizenship As already signalled in DAB 5/2017 and in the transfer DEC 18/2017, some delays have occurred in the start-up of the national programmes for the Asylum and Integration Fund (AMIF) and the Internal Security Fund (ISF), due to the late adoption of the legal bases and the designation of national authorities. However, progress is being made with the implementation of the programmes on the ground: the lower than expected declaration of payments by the Member States does not necessarily reflect the expenditure incurred by the beneficiaries. In addition, both for AMIF and ISF the Commission was able to make important closure payments related to the 2007-2013 predecessor programmes at the end of 2016. This reduced the outstanding balances to be paid in 2017, and the related payment approprations can be reduced accordingly. 2.3.1 Asylum, Migration and Integration Fund (AMIF) Further to the reasons above, the proposed reduction in payments takes into account the slower than originally planned implementation of the two relocation schemes under AMIF leading to a lower declaration of expenditures in the annual accounts of the Member States. Budget line Name Payment appropriations 18 03 01 01 Strengthening and developing the common European asylum system and enhancing solidarity and responsibility-sharing between the Member States -118 000 000 18 03 01 02 Supporting legal migration to the Union and promoting the effective integration of third-country nationals and enhancing fair and effective return strategies -8 000 000 18 03 51 Completion of operations and programmes in the field of return, refugees and migration flows -31 500 000 Total -157 500 000 2.3.2 Internal Security Fund (ISF) The reduction in the payments for the ISF stems from the delay in the implementation of the national programmes (as explained above) and also from the delayed adoption of the new Entry-Exit System. The Regulation establishing the Entry-Exit System is expected to enter into force in November 2017, following the political agreement reached in July. Consequently, the Commission intends to carry forward the commitment appropriations (amounting to EUR 40 million) which are currently in reserve, in accordance with Article 13 2(b) of the Financial Regulation. The related payment appropriations are proposed to be released. Budget line Name Payment appropriations 18 02 01 01 Support of border management and a common visa policy to facilitate legitimate travel -84 000 000 18 02 01 02 Prevention and fight against cross-border organised crime and better management of security- related risks and crisis -8 700 000 18 02 51 Completion of operations and programmes in the field of external borders, security and safeguarding liberties -9 450 000 40 02 41 Differentiated appropriations (Reserve for budget item 18 02 01 03 – Establishing an Entry/Exit System (EES) to register data on the entry, exit and refusal of entry of third country nationals crossing the external borders of the Member States of the European Union) -28 000 000 Total -130 150 000



2.4 Heading 4 – Global Europe 2.4.1 Instrument for Pre-accession assistance (IPA II) It is proposed to reduce a total amount of EUR 268,1 million in payment appropriations identified on several IPA budget lines. Some EUR 113 million results from lower payment needs under the Facility for Refugees in Turkey due to the complex negotiations on some large infrastructure projects and the resulting contractual delays. The remaining surplus in title 22 is due to delays in contracting or in implementation of contracts in the Western Balkans and Turkey. Payment appropriations also exceed the revised needs in cross-border cooperation actions in title 13, mainly due to a sharp decrease in the updated forecast submitted by the countries concerned compared to the forecast underlying the 2017 budget. Budget line Name Payment appropriations 13 05 02 Instrument for Pre-Accession Assistance (IPA) — Completion of regional development component (2007 to 2013) -9 473 967 13 05 63 02 Cross-border cooperation (CBC) — Contribution from Heading 4 -21 988 054 22 02 01 01 Support for political reforms and related progressive alignment with the Union acquis -74 886 680 22 02 01 02 Support for economic, social and territorial development and related progressive alignment with the Union acquis -27 107 354 22 02 03 01 Support for political reforms and related progressive alignment with the Union acquis -25 583 372 22 02 04 01 Multi-country programmes, regional integration and territorial cooperation -94 444 080 22 02 51 Completion of former pre-accession assistance (prior to 2014) -14 617 033 Total -268 100 540

2.4.2 European Neighbourhood Instrument (ENI) It is proposed to reduce a total amount of EUR 434,1 million in payment appropriations identified on several ENI budget lines. Some EUR 300 million is explained by delays in the disbursement of several budget support tranches to Egypt, Morocco, Moldova, Armenia and Azerbaijan because the agreed criteria for their disbursement have not been fulfilled according to schedule. The remaining amount of payment appropriations which can be released relates to postponements due to difficulties encountered in the implementation of projects. For example legal issues as well as the current political context in Gaza have been affecting the smooth implementation of several contracts under line 22 04 01 04. In addition, several payments have been postponed due to delays in the conclusion of the agreements between the government of Egypt and the International Financing Institutions in the framework of blending operations. Finally, under several contracts payments have been postponed due to delays in receiving the payment requests from the contractors or additional supporting documents linked to specific payment requests. Budget line Name Payment appropriations 22 04 01 01 Mediterranean countries — Human rights, good governance and mobility -6 200 513 22 04 01 02 Mediterranean countries — Poverty reduction and sustainable development -85 959 584 22 04 01 04 Support to the peace process and financial assistance to Palestine and to the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) -56 028 674 22 04 02 01 Eastern Partnership — Human rights, good governance and mobility -25 995 110 22 04 02 02 Eastern Partnership — Poverty reduction and sustainable development -103 090 754 22 04 03 03 Support to other multi-country cooperation in the neighbourhood — Umbrella programme -58 339 566 22 04 03 04 Other multi-country cooperation in the neighbourhood — Supporting measures -1 239 476 22 04 51 Completion of actions in the area of European Neighbourhood Policy and relations with Russia (prior to 2014) -97 282 992 Total -434 136 669 2.5 European Union Solidarity Fund (EUSF) There has been no request in 2017 for pre-financing under the EUSF and the full amount of EUR 50 million entered in the 2017 budget for this purpose at the time of its adoption is still available. At this stage the Commission proposes to keep EUR 4 million on budget article 13 06 01 to face any unexpected request. Consequently, EUR 46 million, in both commitment and payment appropriations, may be released. Budget line Name Commitment appropriations Payment appropriations 13 06 01 Assistance to Member States in the event of a major natural disaster with serious repercussions on living conditions, the natural environment or the economy -46 000 000 -46 000 000 Total -46 000 000 -46 000 000 3. Update of revenue 3.1 Overall impact of DAB 6/2017 on the distribution of total own resources payments between Member States As the present DAB decreases the payment appropriations of the 2017 budget, it will therefore have an impact on the total amount payable by Member States towards this budget. However there are also three adjustments on the revenue side of the budget which need to be taken into account. The first of these adjustments is an update of the estimates for Traditional Own Resources (TOR), as well as the Value Added Tax (VAT) and Gross National Income (GNI) resources, which are updated to take account of more recent economic forecasts. The second and third adjustments on the revenue side concern the update of the UK correction and the level of competition fines that has become definitive at the end of September 2017. These three adjustments are presented in sections 3.2, 3.3 and 3.4, below. The overall impact of both the expenditure and 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 2017 budget, as amended in Amending Budget (AB) 2/2017 , and finally in the present DAB. Distribution of total own resources payments by Member States (in million EUR) Budget 2017 AB 2/2017 DAB 6/2017 (1) (2) (3) BE 5 593,8 5 412,4 5 232,8 BG 437,1 418,4 425,3 CZ 1 591,4 1 523,0 1 459,0 DK 2 562,8 2 441,6 2 234,4 DE 27 133,2 25 759,2 23 823,1 EE 210,4 201,3 187,8 IE 1 966,4 1 881,3 1 870,7 EL 1 618,8 1 543,1 1 431,7 ES 10 802,0 10 319,7 9 768,3 FR 20 461,9 19 494,2 18 167,2 HR 427,8 408,7 386,2 IT 15 373,8 14 662,3 13 770,2 CY 165,6 158,2 151,1 LV 250,1 238,8 226,0 LT 401,6 385,2 356,0 LU 318,6 303,5 294,4 HU 1 072,0 1 023,9 965,5 MT 92,9 88,9 84,0 NL 6 764,9 6 464,0 5 941,6 AT 2 943,7 2 795,1 2 634,8 PL 4 102,9 3 923,0 3 613,0 PT 1 671,7 1 593,7 1 504,4 RO 1 512,7 1 439,2 1 357,0 SI 402,1 385,3 363,2 SK 733,7 699,9 662,7 FI 1 881,4 1 791,2 1 707,6 SE 3 899,8 3 686,8 3 218,3 UK 17 324,6 16 271,7 13 647,6 EU 131 718,0 125 313,4 115 483,8 3.2 Revision of the forecast of TOR, VAT and GNI bases According to established practice, the Commission proposes to revise the financing of the budget on the basis of more recent economic forecasts, agreed at a meeting of the Advisory Committee on Own Resources (ACOR). The revision concerns the forecast of Traditional Own Resources to be paid to the budget in 2017 as well as the forecast of the 2017 VAT and GNI bases. The forecast in the 2017 budget was established at the 166th ACOR meeting on 18 May 2016. The revised forecast taken into account in the present DAB was agreed at the 169th ACOR meeting on 19 May 2017. 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 during the budgetary year. As compared to the forecast agreed in May 2016, the forecast agreed in May 2017 has been revised as follows : –Total 2017 net TOR are now forecast at EUR 20 507,3 million (after deduction of 20 % in collection costs), which represents a decrease of -4,47 % relative to the forecast of EUR 21 467,0 million included in the 2017 budget. The Commission compared the results of the traditional ACOR forecasting methodology (based on the spring 2017 macroeconomic forecast) with the results of the extrapolation based on the latest outturn data for collected customs duties (January – April 2017). Since the difference between the two methods was relatively significant (EUR 1 220 billion) the traditional ACOR updated TOR forecast is fully adjusted to the extrapolation method forecast. –The total 2017 EU uncapped VAT base is now forecast at EUR 6 487 607,8 million, which represents an increase of +0,16 % compared to the May 2016 forecast of EUR 6 477 447,9 million. The total 2017 EU capped VAT base is forecast at EUR 6 468 770,4 million, which represents an increase of +0,15 % compared to the May 2016 forecast of EUR 6 459 187,15 million.

–The total 2017 EU GNI base is forecast at EUR 15 177 843,6 million, which is a decrease (-1,51 %) compared to the May 2016 forecast of EUR 15 410 553,3 million. The exchange rates of 30 December 2016 have been used for converting the forecast VAT and GNI bases in national currency into euro (for the nine Member States that are not members of the euro area). This avoids distortions since it is this rate that 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 No 609/2014). The revised forecasts of TOR, uncapped VAT bases and GNI bases for 2017, as adopted at the 169th ACOR meeting on 19 May 2017, are set out in the following table: Revised forecasts of TOR, VAT and GNI bases for 2017 (in million EUR) Sugar levies (80 %) Customs duties (80 %) Uncapped VAT bases GNI bases Capped VAT bases BE 7,0 2 180,8 181 702,0 430 857,3 181 702,0 BG 0,4 74,3 23 169,3 48 254,9 23 169,3 CZ 3,6 253,9 69 591,7 170 821,6 69 591,7 DK 3,6 333,1 109 543,6 294 073,0 109 543,6 DE 28,1 4 214,7 1 344 582,5 3 292 895,8 1 344 582,5 EE 0,0 29,1 11 013,6 21 710,8 10 855,4 IE 0,0 277,1 82 328,0 231 429,7 82 328,0 EL 1,5 156,9 72 702,4 181 726,6 72 702,4 ES 5,0 1 521,4 511 216,1 1 157 887,3 511 216,1 FR 33,0 1 599,0 1 016 719,6 2 324 154,3 1 016 719,6 HR 1,9 45,8 28 337,3 46 300,3 23 150,2 IT 5,0 1 910,7 649 635,8 1 705 264,7 649 635,8 CY 0,0 20,3 12 082,5 17 909,5 8 954,8 LV 0,0 40,7 10 662,9 26 452,1 10 662,9 LT 0,9 77,0 16 556,7 39 240,8 16 556,7 LU 0,0 19,5 26 940,4 37 268,3 18 634,2 HU 2,2 140,1 48 357,0 116 824,7 48 357,0 MT 0,0 11,9 6 757,1 9 843,1 4 921,6 NL 7,7 2 433,2 304 311,3 712 882,7 304 311,3 AT 3,4 204,1 168 078,0 360 646,5 168 078,0 PL 13,7 608,6 179 446,7 422 847,6 179 446,7 PT 0,2 138,3 93 756,3 187 067,6 93 533,8 RO 1,0 148,0 63 769,3 174 951,6 63 769,3 SI 0,0 67,6 19 185,3 40 910,3 19 185,3 SK 1,4 95,7 28 850,4 82 304,9 28 850,4 FI 0,8 140,5 94 101,7 220 743,3 94 101,7 SE 2,8 497,4 208 548,1 488 888,5 208 548,1 UK 10,10 3 134,5 1 105 662,2 2 333 685,8 1 105 662,2 EU-28 133,3 20 374,0 6 487 607,8 15 177 843,6 6 468 770,4 3.3 2016 and 2013 UK correction 3.3.1 Introduction The correction of budgetary imbalances in favour of the United Kingdom (UK correction), to be budgeted in the present DAB, concerns two years: 2013 and 2016. The 2013 UK correction is subject to the rules of Council Decision 2007/436/EC, Euratom on the system of the European Communities' own resources and its accompanying working document, the 2007 Calculation Method . Pursuant to the rules of this Decision, the net TOR “windfall gains” of the UK resulting from the increase since 2001 in the percentage of TOR retained by Member States as a compensation for their collection costs are neutralised and the allocated expenditure is adjusted by the total allocated expenditure in Member States that have acceded to the EU after 30 April 2004, except for agricultural direct payments and market-related expenditure as well as that part of the rural development expenditure originating from the EAGGF, Guarantee section. The 2016 UK correction is subject to the rules of Council Decision 2014/335/EU, Euratom on the system of own resources of the European Union and its accompanying working document, the 2014 Calculation Method . Pursuant to the rules of this Decision, the net TOR “windfall gains” of the UK resulting from the increase since 2001 in the percentage of TOR retained by Member States as a compensation for their collection costs are neutralised (taking into account the collection cost of 20%) and the allocated expenditure is adjusted by the total allocated expenditure in Member States that have acceded to the EU after 30 April 2004, except for agricultural direct payments and market-related expenditure as well as that part of the rural development expenditure originating from the EAGGF, Guarantee section. Furthermore, the share of Austria, Germany, the Netherlands and Sweden in the financing of the UK correction is reduced to one fourth of their normal share for both, 2013 and 2016 corrections. The reduction is financed by the other Member States, excluding the UK. The difference between the definitive amount of the 2013 UK correction and the amount previously budgeted (the 2nd update entered in AB 5/2016) is entered in chapter 35 of the present DAB. The difference between the 1st update amount of the 2016 UK correction and the amount previously budgeted (the provisional amount entered in Budget 2017) is entered in chapter 15 of the present DAB. 3.3.2 Calculation of the corrections In the present DAB, the calculation and financing of the 1st update of the 2016 UK correction and the definitive amount of the 2013 UK correction are entered. The update of the corrections for 2013 and 2016 stems mainly from the update of the VAT and GNI bases as communicated by Member States in autumn 2016. In addition the update of the correction for 2016 also takes into account the allocated expenditure of 2016. 3.3.2.1 2016 UK correction The following table summarises the changes between the provisional amount of the 2016 UK correction entered in Budget 2017 and the 1st update of the 2016 UK correction to be entered in the present DAB. 2016 UK correction 2016 UK correction PROVISIONAL Budget 2017 2016 UK correction 1st UPDATE DAB 6/2017 Difference (1) (2) (2)-(1) (1) UK share of uncapped VAT base 18,0077% 17,5900% -0,4177% (2) UK share of enlargement-adjusted total allocated expenditure 7,2983% 7,6814% +0,3832% (3) = (1) - (2) 10,7095% 9,9086% -0,8009% (4) Total allocated expenditure 129 383 323 229 117 477 286 403 - 11 906 036 826 (5) Enlargement-related expenditure

= (5a) + (5b) 34 414 600 712 25 506 896 869 - 8 907 703 843 (5a) Pre-accession expenditure 0 0 0 (5b) Expenditure related to Art 4(1)(g) 34 414 600 712 25 506 896 869 - 8 907 703 843 (6) Enlargement-adjusted total allocated expenditure = (4) - (5) 94 968 722 517 91 970 389 534 - 2 998 332 984 (7) UK correction original amount = (3) x (6) x 0.66 6 712 622 123 6 014 542 348 - 698 079 776 (8) UK advantage 1 524 007 149 1 128 635 343 - 395 371 806 (9) Core UK correction = (7) - (8) 5 188 614 974 4 885 907 005 - 302 707 970 (10) TOR windfall gains - 49 835 714 - 46 683 873 + 3 151 841 (11) UK correction = (9) - (10) 5 238 450 688 4 932 590 878 - 305 859 810 The 1st update of the 2016 UK correction is around EUR 306 million lower as compared to the provisional amount of the 2016 UK correction entered in Budget 2017.

3.3.2.2 2013 UK correction The following table summarises the changes between the 2nd update of the 2013 UK correction entered in AB 5/2016 and the definitive amount of the 2013 UK correction to be entered in the present DAB.



2013 UK correction 2013 UK correction

2nd UPDATE

AB 5/2016 2013 UK correction

DEFINITIVE

DAB 6/2017 Difference (1) (2) (2)-(1) (1) UK share of uncapped VAT base 16,0378% 16,2955% + 0,2577% (2) UK share of enlargement-adjusted total allocated expenditure 6,0959% 6,0959% + 0,0000% (3) = (1) - (2) 9,9418% 10,1996% + 0,2577% (4) Total allocated expenditure 134 745 129 775 134 745 129 775 0 (5) Enlargement-related expenditure

= (5a) + (5b) 31 288 595 815 31 288 595 815 0 (5a) Pre-accession expenditure 0 0 0 (5b) Expenditure related to Art 4(1)(g) 31 288 595 815 31 288 595 815 0 (6) Enlargement-adjusted total allocated expenditure = (4) - (5) 103 456 533 960 103 456 533 960 0 (7) UK correction original amount = (3) x (6) x 0.66 6 788 418 578 6 964 389 260 + 175 970 682 (8) UK advantage 846 456 483 931 944 129 + 85 487 646 (9) Core UK correction = (7) - (8) 5 941 962 095 6 032 445 131 +90 483 036 (10) TOR windfall gains 18 914 477 10 994 751 - 7 919 725 (11) UK correction = (9) - (10) 5 923 047 619 6 021 450 379 +98 402 760 The definitive amount of the 2013 UK correction is EUR 98 million higher than the 2nd update of the 2013 UK correction entered in AB 5/2016 mainly due to the updates of the VAT and GNI bases as communicated by Member States in autumn 2016. 3.3.3 Entry in the DAB 6/2017 of the 1st update of the 2016 UK correction and definitive amount of the 2013 UK correction 3.3.3.1 2013 UK correction (chapter 35) The amount of the UK correction to be budgeted in chapter 35 of the present DAB is the difference between the definitive amount of the 2013 UK correction (i.e. EUR 6 021 450 379) and the 2nd update of the 2013 UK correction (i.e. EUR 5 923 047 619 entered in AB 5/2016) amounting to EUR 98 402 760. This amount is to be financed along the revised 2013 GNI bases as known at the end of 2016. The budgeting of this amount in chapter 35 is summarised below: 2013 UK correction — Chapter 35 BE 3 427 431 LU 2 999 679 BG 1 515 290 HU 1 214 768 CZ 2 998 256 MT 320 388 DK 6 889 492 NL 1 151 037 DE 8 754 255 AT 418 805 EE 368 634 PL 2 257 310 IE 5 640 096 PT 1 399 728 EL 2 191 253 RO 2 993 513 ES - 651 779 SI 916 682 FR 18 525 521 SK 2 214 808 HR 824 776 FI 4 965 839 IT 25 072 902 SE 565 841 CY 228 695 LV 81 908 UK - 98 402 760 LT 1 117 632 Total 0



3.3.3.2 2016 UK correction (chapter 15) The 1st update of the 2016 UK correction corresponds to EUR 4 932 590 878 and is EUR 305 859 810 million lower than the amount entered in Budget 2017 (EUR 5 238 450 688). This amount is to be financed along the revised 2017 GNI bases of the present DAB. The budgeting of this amount in chapter 15 is summarised below: 2016 UK correction – chapter 15 BE 240 885 677 LU 20 836 132 BG 26 978 571 HU 65 314 890 CZ 95 503 724 MT 5 503 126 DK 164 411 683 NL 68 442 765 DE 316 145 831 AT 34 625 113 EE 12 138 174 PL 236 407 577 IE 129 388 779 PT 104 586 612 EL 101 600 542 RO 97 812 744 ES 647 356 946 SI 22 872 318 FR 1 299 398 854 SK 46 015 401 HR 25 885 784 FI 123 414 177 IT 953 387 216 SE 46 937 429 CY 10 012 925 UK - 4 932 590 878 LV 14 788 961 LT 21 938 927 Total 0 3.4 Fines At the end of September 2017, an amount of EUR 3 209,7 million of fines (principal) has become definitive. According to Article 83 of the Financial Regulation, definitive fines "shall be recorded as soon as possible and at the latest in the year following the exhaustion of all legal remedies". This amount exceeds the level of fines that was initially estimated in the budget 2017, i.e. EUR 1 100,0 million. The difference, EUR 2 209,7 million will reduce accordingly the own resources contributions from Member States to the EU budget. The below table gives the breakdown of fines by case.