[pic] | EUROPEAN COMMISSION |

Brussels, 11.10.2010

COM(2010) 557 final

COMMUNICATION FROM THE COMMISSION

EUROPEAN DEVELOPMENT FUND (EDF)Estimate of commitments and payments and of contributions to be paid by the Member States for 2010 to 2015

INTRODUCTION

In accordance with Article 7(1) and (5) of the Internal Agreement,[1] the Commission presents in this document estimates of commitments, payments and contributions for the period 2010 to 2015, taking into account the forecasts of the European Investment Bank (EIB) concerning the Investment Facility.

Since the entry into force of the 9th European Development Fund (EDF) in 2003, the Member States have made direct contributions to the EIB for the instruments it manages (the Investment Facility and interest-rate subsidies). This communication therefore draws a clear distinction between funds managed by the EIB under the 9th and 10th EDFs and those managed by the Commission.

As in previous years, this document consists mainly of tables accompanied by a few explanations to help interpretation.

The graph below gives an overview of the trend in commitments and payments (Commission[2] and EIB). It clearly shows the structural upward trend of payments since 2000.

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1. Financial implementation forecasts for 2010 and 2011

The Commission and the EIB have updated their commitment and payment forecasts for 2010 and 2011 for each of the ACP[3] countries and the OCTs[4]. The result and the amount of contributions necessary to finance the EDF are set out in Annexes 1 to 3 where they are compared with the figures given in the June 2010 communication[5].

The EIB notes that the estimated 2010 year-end balance is mainly based on a forecast of the capital and interest repayments, a large part of which is due in mid-December. These repayments are unpredictable and may be early or late.

In accordance with Article 57(4) of the Financial Regulation applicable to the 10th EDF[6], the forecasts will be revised in the June 2011 communication.

The contributions 2010 and 2011 by instalment are presented in the Annex 4.

2. Financial years 2010 to 2015

It should be remembered that the margin of error in medium-term estimates is high.

Following the entry into force of the 10th EDF, the Commission is obliged to propose a ceiling on the annual amount of the contributions for year n+2, i.e. 2012[7]. A figure of EUR 350 million is proposed for the EIB and EUR 4.000 million for the Commission.

The table below sets out the result of the forecasts for 2010-2015.The relatively high gap between payments and contributions for the EIB is due to the fact that, since 2007, some of the payments have been financed by loan repayments.

Commission will start to call 10th EDF contributions from 2011, while the EIB is likely to start drawing from the 10th EDF from 2013 onwards.

Forecast of commitments, payments and contributions 2010-2015 (EUR million)

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* For Commission, as the financial framework for the period after 2013 has not been agreed, this document does not include any amounts for commitments for the years 2014 and 2015. This also affects the amounts presented as payments and contributions, and explains the fall in amounts starting from 2014.

** as from 2013, EIB figures exclude subsidy/TA envelope which might be emptied in 2012.

ANNEX 1 – Forecast commitments for 2010, 2011and 2012 ( EUR million ) [pic]

ANNEX 2 – Forecast payments for 2010, 2011 and 2012 (EUR million) [pic]

ANNEX 3 - Financial situation estimated for 2010, 2011 and 2012 (EURmillion)

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ANNEX 4 - 2010 and 2011 EDF Contributions by instalment (EUR)

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[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] The commitments and payments for the Commission are “gross” figures, i.e. without the deduction of decommitments and recoveries.

[3] African, Caribbean and Pacific States.

[4] Overseas Countries and Territories.

[5] COM(2010) 319 final of 15.06.2010. The figures for the Investment Facility are as given by the EIB and are contained in the same Communication.

[6] OJ L 78, 19.3.2008, p. 1.

[7] Article 7 of the Internal Agreement (see paragraphs 1-4).