EN

Brussels, 7.10.2008

COM(2008) 634 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 2008 to 2013

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 2008 to 2013, 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.

(...PICT...)

- - commitments ― payments

1. Financial implementation forecasts for 2008 and 2009

The Commission and the EIB have updated their commitment and payment forecasts for 2008 and 2009 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 2008 communication [5].

As regards the Commission, it should be stressed that, as a result of the late entry into force of the 10th EDF, the 2008 commitments will be very concentrated towards the end of the year. A slight delay in the workflow is bound to lead to relatively substantial slippage in projects between 2008 and 2009. The Commission would also point out that it closed the 7th EDF in September 2008 and initiated a procedure for closing the bank accounts in the ACP and OCT countries, which should rationalise treasury management. At the beginning of 2009 it is to replace the EDF computer accounting programme with a new one modelled on the programme used for the general budget.

The EIB notes that the estimated 2008 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.

The Commission urges the Council to make available all the contributions necessary to guarantee proper implementation of the EDF in 2008 and 2009. If the Council's decision on the third tranche for 2008 is less than the amount requested, the annual amount of the contributions for 2009 and the first tranche for 2009 should be increased accordingly. Otherwise the EDF will be forced to suspend payments in 2009.

In accordance with Article 57(4) of the Financial Regulation applicable to the 10th EDF [6], the forecasts will be revised in the June 2009 communication.

2. Financial years 2010 to 2013

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, for the first time, on the annual amount of the contributions for year n+2, i.e. 2010 [7]. A figure of €280 million is proposed for the EIB and €3 500 million for the Commission.

The table below sets out the result of the forecasts for 2008-2013. 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.

Forecast of commitments, payments and contributions

2008-2013

€ million

| | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 |

Commitments | | | | | | |

| Commission | 3578 | 3750 | 3750 | 3750 | 3750 | 3200 |

| EIB | 520 | 530 | 550 | 550 | 550 | 470 |

Payments | | | | | | |

| Commission | 3140 | 3375 | 3550 | 3650 | 3700 | 3700 |

| EIB | 368 | 430 | 450 | 450 | 450 | 370 |

Contributions | | | | | | |

| Commission | 3000 | 3300 | 3500 | 3575 | 3625 | 3625 |

| EIB | 240 | 200 | 280 | 230 | 210 | 200 |

ANNEX 1 – Forecast commitments for 2008 and 2009 (EUR million)

| 2008 | 2009 |

| June 2008 [8] communication | Revised | June 2008 communication | Revised |

Regions | | | | |

East Africa | 529 | 778 | | 949 |

West Africa | 1 096 | 1 486 | | 790 |

Central Africa | 207 | 482 | | 352 |

Caribbean | 99 | 123 | | 355 |

Pacific | 30 | 39 | | 106 |

Southern Africa | 730 | 170 | | 712 |

Subtotal | 2 692 | 3 076 | | 3 264 |

Other | | | | |

Peace Facility | 300 | 0 | | 300 |

Other [9] | 36 | 502 | | 186 |

Total for the Commission | 3 029 | 3 578 | 3 750 | 3 750 |

Investment Facility | 450 | 450 | 450 | 450 |

Interest-rate subsidies | 50 | 70 | 50 | 80 |

Total for EIB instruments | 500 | 520 | 500 | 530 |

TOTAL | 3 529 | 4 098 | 4 250 | 4 280 |

ANNEX 2 – Forecast payments for 2008 and 2009 (EUR million)

| 2008 | 2009 |

| June 2008 communication [10] | Revised | June 2008 communication | Revised |

Regions | | | | |

East Africa | 578 | 627 | | 844 |

West Africa | 858 | 804 | | 916 |

Central Africa | 373 | 324 | | 457 |

Caribbean | 256 | 217 | | 264 |

Pacific | 76 | 68 | | 85 |

Southern Africa | 354 | 366 | | 380 |

Sub-total | 2 493 | 2 406 | | 2 946 |

Other | | | | |

Peace Facility | 45 | 41 | | 23 |

Water Facility | 99 | 71 | | 43 |

Energy Facility | p.m. | 29 | | 27 |

Risk capital [11] | 77 | 51 | | 51 |

Debt relief (HIPC) | 180 | 180 | | 0 |

Infrastructure Trust Fund | 40 | 40 | | 1 |

Other [12] | 172 | 288 | | 282 |

SUBTOTAL | 3 106 | 3 106 | 3 168 | 3 373 |

Stabex | 14 | 34 | 32 | 25 |

Total for the Commission | 3 120 | 3 140 | 3 200 | 3 375 |

Investment Facility | 370 | 310 | 400 | 350 |

Interest-rate subsidies | 50 | 58 | 50 | 80 |

Total for EIB instruments | 420 | 368 | 450 | 430 |

TOTAL | 3 540 | 3 508 | 3 650 | 3 805 |

Gross payments, i.e. without recoveries being deducted.

ANNEX 3 - Financial situation estimated for 2008, 2009 and 2010 [13] (EUR million)

| June 2008 communication* | Revised |

| Commission | EIB | Total | Commission | EIB | Total |

| Balance at 31.12.2007** | 57 | 77 | 134 | 57 | 77 | 134 |

2008 | 2008 contributions, of which: | 3000 | 270 | 3270 | 3000 | 240 | 3240 |

| 1st tranche | 1635 | 170 | 1805 | 1635 | 170 | 1805 |

| 2nd tranche | 1000 | 70 | 1070 | 1000 | 70 | 1070 |

| 3rd tranche | 365 | 30 | 395 | 365 | 0 | 365 |

| Reflows | | 120 | 120 | | 140 | 140 |

| Recoveries, interest and other | 75 | | 75 | 75 | | 75 |

| Total payments | -3120 | -420 | -3540 | -3140 | -368 | -3508 |

| Stabex payments (already financed) | 14 | | 14 | 34 | | 34 |

| Balance at 31.12.2008 | 26 | 47 | 73 | 26 | 89 | 115 |

2009 | 2009 contributions, of which: | 3100 | 370 | 3470 | 3300 | 200 | 3500 |

| 1st tranche | | | | 1750 | 70 | 1820 |

| 2nd tranche | | | | 1100 | 110 | 1210 |

| 3rd tranche | | | | 450 | 20 | 470 |

| Reflows | | 80 | 80 | | 170 | 170 |

| Recoveries, interest and other | 75 | | 75 | 75 | | 75 |

| Total payments | -3200 | -450 | -3650 | -3375 | -430 | -3805 |

| Stabex payments (already financed) | 32 | | 32 | 25 | | 25 |

| Balance at 31.12.2009 | 33 | 47 | 80 | 51 | 29 | 80 |

2010 | 2010 contributions | | | | 3500 | 280 | 3780 |

| Reflows | | | | | 200 | 200 |

| Recoveries, interest and other | | | | 75 | | 75 |

| Total payments | 3325 | -470 | 2855 | -3600 | -450 | -4050 |

| Stabex payments (already financed) | | | | 32 | | 32 |

| Balance at 31.12.2010 | | | | 58 | 59 | 117 |

* COM(2008) 354 final of 13.6.2008 (see also Council document 121/08 ACP of 16.6.2008 with revised figures for the EIB) |

** minus contributions paid in advance |

ANNEX 4 - 2008 EDF Contributions by Member State (EUR)

Member State | Scale | 1st tranche | 2nd tranche | 3rd tranche | TOTAL |

| | paid | paid | paid | paid | payable to | payable to | for all |

| % | EIB | Commission | EIB | Commission | EIB | Commission | tranches |

GERMANY | 23.36 | 39 712 000 | 381 936 000 | 16 352 000 | 233 600 000 | 0 | 85 264 000 | 756 864 000 |

BELGIUM | 3.92 | 6 664 000 | 64 092 000 | 2 744 000 | 39 200 000 | 0 | 14 308 000 | 127 008 000 |

DENMARK | 2.14 | 3 638 000 | 34 989 000 | 1 498 000 | 21 400 000 | 0 | 7 811 000 | 69 336 000 |

SPAIN | 5.84 | 9 928 000 | 95 484 000 | 4 088 000 | 58 400 000 | 0 | 21 316 000 | 189 216 000 |

FRANCE | 24.30 | 41 310 000 | 397 305 000 | 17 010 000 | 243 000 000 | 0 | 88 695 000 | 787 320 000 |

GREECE | 1.25 | 2 125 000 | 20 437 500 | 875 000 | 12 500 000 | 0 | 4 562 500 | 40 500 000 |

IRELAND | 0.62 | 1 054 000 | 10 137 000 | 434 000 | 6 200 000 | 0 | 2 263 000 | 20 088 000 |

ITALY | 12.54 | 21 318 000 | 205 029 000 | 8 778 000 | 125 400 000 | 0 | 45 771 000 | 406 296 000 |

LUXEMBOURG | 0.29 | 493 000 | 4 741 500 | 203 000 | 2 900 000 | 0 | 1 058 500 | 9 396 000 |

NETHERLANDS | 5.22 | 8 874 000 | 85 347 000 | 3 654 000 | 52 200 000 | 0 | 19 053 000 | 169 128 000 |

PORTUGAL | 0.97 | 1 649 000 | 15 859 500 | 679 000 | 9 700 000 | 0 | 3 540 500 | 31 428 000 |

UNITED KINGDOM | 12.69 | 21 573 000 | 207 481 500 | 8 883 000 | 126 900 000 | 0 | 46 318 500 | 411 156 000 |

AUSTRIA | 2.65 | 4 505 000 | 43 327 500 | 1 855 000 | 26 500 000 | 0 | 9 672 500 | 85 860 000 |

FINLAND | 1.48 | 2 516 000 | 24 198 000 | 1 036 000 | 14 800 000 | 0 | 5 402 000 | 47 952 000 |

SWEDEN | 2.73 | 4 641 000 | 44 635 500 | 1 911 000 | 27 300 000 | 0 | 9 964 500 | 88 452 000 |

TOTAL | 100.00 | 170 000 000 | 1 635 000 000 | 70 000 000 | 1 000 000 000 | 0 | 365 000 000 | 3 240 000 000 |

ANNEX 5 - 2009 EDF Contributions by Member State (EUR)

Member State | Scale | 1st tranche | 2nd tranche | 3rd tranche | TOTAL |

| | payable to | payable to | payable to | payable to | payable to | payable to | for all |

| % | EIB | Commission | EIB | Commission | EIB | Commission | tranches |

GERMANY | 23.36 | 16 352 000 | 408 800 000 | 25 696 000 | 256 960 000 | 4 672 000 | 105 120 000 | 817 600 000 |

BELGIUM | 3.92 | 2 744 000 | 68 600 000 | 4 312 000 | 43 120 000 | 784 000 | 17 640 000 | 137 200 000 |

DENMARK | 2.14 | 1 498 000 | 37 450 000 | 2 354 000 | 23 540 000 | 428 000 | 9 630 000 | 74 900 000 |

SPAIN | 5.84 | 4 088 000 | 102 200 000 | 6 424 000 | 64 240 000 | 1 168 000 | 26 280 000 | 204 400 000 |

FRANCE | 24.30 | 17 010 000 | 425 250 000 | 26 730 000 | 267 300 000 | 4 860 000 | 109 350 000 | 850 500 000 |

GREECE | 1.25 | 875 000 | 21 875 000 | 1 375 000 | 13 750 000 | 250 000 | 5 625 000 | 43 750 000 |

IRELAND | 0.62 | 434 000 | 10 850 000 | 682 000 | 6 820 000 | 124 000 | 2 790 000 | 21 700 000 |

ITALY | 12.54 | 8 778 000 | 219 450 000 | 13 794 000 | 137 940 000 | 2 508 000 | 56 430 000 | 438 900 000 |

LUXEMBOURG | 0.29 | 203 000 | 5 075 000 | 319 000 | 3 190 000 | 58 000 | 1 305 000 | 10 150 000 |

NETHERLANDS | 5.22 | 3 654 000 | 91 350 000 | 5 742 000 | 57 420 000 | 1 044 000 | 23 490 000 | 182 700 000 |

PORTUGAL | 0.97 | 679 000 | 16 975 000 | 1 067 000 | 10 670 000 | 194 000 | 4 365 000 | 33 950 000 |

UNITED KINGDOM | 12.69 | 8 883 000 | 222 075 000 | 13 959 000 | 139 590 000 | 2 538 000 | 57 105 000 | 444 150 000 |

AUSTRIA | 2.65 | 1 855 000 | 46 375 000 | 2 915 000 | 29 150 000 | 530 000 | 11 925 000 | 92 750 000 |

FINLAND | 1.48 | 1 036 000 | 25 900 000 | 1 628 000 | 16 280 000 | 296 000 | 6 660 000 | 51 800 000 |

SWEDEN | 2.73 | 1 911 000 | 47 775 000 | 3 003 000 | 30 030 000 | 546 000 | 12 285 000 | 95 550 000 |

TOTAL | 100.00 | 70 000 000 | 1 750 000 000 | 110 000 000 | 1 100 000 000 | 20 000 000 | 450 000 000 | 3 500 000 000 |

[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(2008) 354 final of 13.6.2008. The figures for the Investment Facility are as given by the EIB during discussions in the Council (see Council document 121/08 ACP of 16.6.2008).

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

[7] Article 7 of the Internal Agreement (see footnote 1).

[8] COM(2008) 354 final of 13.6.2008 (see also Council document 121/08 ACP of 16.6.2008 with figures revised by the EIB).

[9] Includes certain support expenditures, e.g. to support joint institutions and the ACP Secretariat, and mobilisation of the "B" envelope in connection, inter alia, with the food price crisis.

[10] See footnote 8.

[11] Including interest-rate subsidies under the previous EDFs.

[12] See footnote 9.

[13] Funds available for operations

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