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 2013 and 2014, 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 2012 and the forecasts of implementation for 2013 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 2013 and 2014 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 2013 communication.

The graph below shows the general trend in commitments and payments, including projections for 2013 - 2014 (Commission and EIB).

Gross commitments and payments: trend 1999-2014 (Million EUROS)[7]

Implementation of the European Development Funds at 31 December 2012 (commitments, payments and financial situation)

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

3. Financial forecasts for 2013 – 2014

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

4. Financial implementation forecasts for 2013 and 2014

The updated forecasts are set out in Attachments 1 to 3.

The updated 2013 forecasts confirm the treasury needs and Member States contributions to the EDF for 2013 as decided by the Council in October 2012[9], at EUR 3 100 million for the Commission and EUR 250 million for the EIB (see attachment 4 for detail on the split of the 2013 contribution requests).

For 2014 we forecast the ceiling for the Member States contributions will amount to EUR 2 950 million for the Commission and EUR 360 million for the EIB.

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.

[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 2013-2014, forecasted amounts

[8] COM(2012) 610.

[9] Council Decision of 19 November 2012– Council document 15526/12.