Communication from the Commission to the Council - Financial information on the European Development Funds
Date: 2001-07-16
Institutions: European Commission
Subjects: European Development Fund, Stabex, budgetary expenditure, financial year

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 16.07.2001
COM(2001) 402 final

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL

Financial Information on the European Development Funds

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL

Financial Information on the European Development Funds

CONTENTS

Preliminary remarks............................................................................................................... 3

Summary ............................................................................................................................... 4

1.

1.1.

1.2.

2.

2.1.

2.2.

3.

Status of European Development Funds at 31.12.2000 ............................................. 6

General table ............................................................................................................ 6

Implementation of the Funds at 31 December 2000 .................................................. 7

Financial implementation forecasts for 2001 (figures revised May 2001).................. 9

Decisions.................................................................................................................. 9

Payments................................................................................................................ 10

Implementation forecasts for 2002 ......................................................................... 10

2

Preliminary remarks

This document is submitted as an annex to the draft budget for 2002, in accordance with the
1979 agreements on budgetary procedure.

To make the budgetary authority’s task as easy as possible, the information given in this
document is restricted to the key data. However, as in previous years, it shows:

-

-

-

EDF implementation at 31.12.2000;

financial implementation forecasts for the current year;

expenditure forecasts for 2002.

Further details on EDF implementation at 31.12.2000 are given in the Commission
communication to the Court of Auditors, Parliament and the Council containing the balance
sheets and accounts of the 6th, 7th and 8th EDFs for 2000.

3

1.

2.

Summary

€

€

1 548.17 million, implementation of the EDF in 2000
With payments standing at
will be below the forecast of
1 985 million presented to the Member States in
November 1999, i.e. a rate of 85% excluding Stabex (78% including Stabex). The
wide gap between actual and forecast implementation had been highlighted in the
paper on Financial Information on the EDF presented to the Council in July 2000,
which had increased the forecast to
2 635 million, mainly to take account of a
€
substantial rise in the allocations for the HIPC initiative (up
350 million) and the
Structural Adjustment Facility (up
150 million) and the sums entered under
“miscellaneous” to cover large-scale activities which the Commission wanted to
implement in 2000 for healthcare and risk capital. Because these two initiatives were
not
the paper on the Estimate of Contributions Needed
presented to the Council in December 2000 revised the forecast for 2000 downwards
substantially, to a total of
2 025 million. Overall, payment implementation stands at
76% of the last forecast (81% without Stabex).

translated into action,
€

€

€

2000 was a good year for decisions, however, compared with the recent average.
€
Current expenditure totalled
3 396.36 million, while Stabex reached
361.06 million,
€
3 757.42 or 125 % of the November 1999 forecast of
making a combined total of
€

€

3 000 million for all instruments.

€

€

1 000 million.

However, the gap is largely accounted for by the fact that the November 1999 forecast
did not take into account the HIPC initiative’s
Discounting the
1 000 million, performance in terms of EDF decisions in 2000
should only be considered a good average, given the entry into force of the 8th EDF.
To put the size of the gap between decisions and payments in perspective, account
should first be taken of the late entry into force of the 8th EDF in July 1998 and the
reasonable time-lag between the decision on a project and its actual implementation.
Following this reasoning, we are expecting performance in terms of payments to
improve in 2001 compared with previous years.

In a political and economic climate that continues to fluctuate sharply and is sensitive
to changes in the world economy, official development aid granted by the European
Union to the ACP States and OCTs constantly reflects these external factors.

the domestic situation in a number of recipient countries
In 2000, as in 1999,
continued to fluctuate throughout the year and this affected the pace and estimated
amount of disbursements.

Implementation forecasts for 2001 (for decisions and payments alike) have been
revised downwards to take account of the reality on the ground. Considerations such
as the time still needed for the 9th EDF to be ratified, the limited resources left over
from previous EDFs and embarking on a new programming cycle have led the
2 000
Commission to set the updated forecasts at
million for payments. Though substantially down on the previous forecasts, these
figures still represent the best expected performance (especially for payments) when
measured against the implementation average of recent years.

2 000 million for decisions and

€

€

4

€

€

1 415 million call for
To cover this expenditure and current payments for 2001, a
contributions was approved and made to the Member States in December 2000. In
addition to this call for contributions, a total of
885 million will be transferred
gradually during the course of the year from the Stabex account to the EDF current
expenditure account, in line with the decision of the Committee of Ambassadors taken
at the end of September 2000 concerning the establishment of a reserve intended to
finance decisions under STABEX and SYSMIN in the period 2 August
to
31 December 2000. This brings the amount deemed necessary to cope with
expenditure for 2001 to
2 300 million. In accordance with the procedure established
in the EDF Financial Regulation, the size of the call for contributions can of course be
adjusted up or down , depending on the need for funds, whose level is monitored
continuously. In this context, the call for the second quarter of 2001 was reduced by
€
200 million) and it is also proposed to reduce the last two
calls for 2001, to take into account the downward revision of payment forecasts for
2001.

129 million (from

329 to

€

€

€

In line with the arrangements established in the 8th EDF Financial Regulation, Stabex
calls for contributions closed in July 2000. As a result,
there is no call for
contributions for Stabex in 2001.

3.

Forecasts for 2002 are

€

3 000 million for decisions and

€

2 100 million for payments.

5

1.

STATUS OF EUROPEAN DEVELOPMENT FUNDS AT 31.12.2000

1.1.

General table

Fund1

Implementation
at 31/12/00 (%)

Implement
-ation at
31/12/00
€
million)
(

6th EDF
allocations (a)
decisions (b)
contracts (c)
payments (d)

7 829.1 2
7 496.1
7 258.5
7 136.1

95.75% (b/a)
91.15% (d/a)
95.20% (d/b)
98.31% (d/c)

Entry into
force of
the EDF

01.05.1986

7th EDF
allocations (a)
decisions (b)
contracts (c)
payments (d)

11 514.93
10 754.5
9 363.1
8 499.4

93.40% (b/a)
73.81% (d/a)
79.03% (d/b)
90.78% (d/c)

01.09.1991

8th EDF
allocations (a)
decisions (b)
contracts (c)
payments (d)

13 345.1
8 348.1
3 796.3
1 980.3

62.56% (b/a)
14.84% (d/a)
23.72% (d/b)
52.16% (d/c)

17.06.1998

Recipients

Type of aid

ACP-OCT
“
“
“
“
“
“

ACP-OCT
“
“
“
“
“
“
“
“

ACP-OCT
“
“
“
“
“
“

Programmable aid
Interest-rate subsidies
Risk capital
Stabex
Sysmin
Emergency aid
Aid for refugees

Programmable aid
Structural adjustment
facility
Interest-rate subsidies
Risk capital
Stabex
Sysmin
Emergency aid
Aid for refugees

Programmable aid
Structural adjustment
facility
Interest-rate subsidies
Risk capital
Stabex
Sysmin
Emergency aid
Aid for refugees
HIPC – debt relief

EIB own resources totalling ECU 1 120 million under the 6th EDF, ECU 1 225 million under
the 7th EDF and ECU 1 693 million under the 8th EDF should be added to the above
allocations.

1

2

3

These allocations exclude interest.
€
Replenishment of the Somalia NIP with
39 million transferred to the 8th EDF in
35.7million less
accordance with Article 1(ii) of the 8th EDF Internal Agreement (remaining balance of the 4th and 6th
EDFs).
Transfer of
EDF Internal Agreement.

253 million from the 7th EDF to the 8th EDF in accordance with Article 1(ii) of the 8th

€

€

6

1.2.

1.2.1.

Implementation of the Funds at 31 December 2000
€

EDF expenditure in 2000:

1 548.17 million.

TRENDS IN PAYMENTS (EUR million)

Current payments

Stabex

TOTAL

1991
1992
1993
1994
1995
1996
1997
1998
1999
2000

1002
1330
1321
1430
1260
1152
1194
1351
1255
1477

189
612
33
351
303
165
19
89
20
71

1191
1942
1354
1781
1563
1317
1213
1440
1275
1548

DECISIONS/PAYMENTS COMPARISON (6th, 7th & 8th EDFs - EUR million)
Payments
Instruments
1999

Decisions
1999

2000

PROGRAMMABLE AID:
- National and regional indicative
programmes
- Structural adjustment facility
STABEX
SYSMIN
RISK CAPITAL
INTEREST-RATE SUBSIDIES
EMERGENCY AID
AID FOR REFUGEES
HIPC INITIATIVE
TOTAL

2297.69

1984.22
313.47
75.01
27.71
199.25
4.94
82.68
-0.90
6.44
2692.82

2100.47

1640.97
459.50
361.06
94.10
122.59
24.50
1.52
24.19
1028.97
3757.42

994.34

732.74
261.60
20.15
53.70
131.47
25.37
48.81
1.54
0

1275.38

2000

892.37

745.05
147.32
70.61
28.73
152.55
17.42
28.26
1.79
356.44
1548.17

For the third year running,
the level of decisions, excluding the HIPC initiative, was
maintained with the start-up of implementation of the 8th EDF, and although this has not yet
been reflected in the level of payments, it is inevitable in due course. The sizeable difference in
the level of decisions between 1999 and 2000 is entirely due to the HIPC debt relief initiative
introduced in 2000. Sysmin payments remained low in 2000.

7

1.2.2.

Financing of EDF operations was problem-free in 2000

In EUR million

to

for

Resources
Carry-over to 01.01
Call
contributions
Transfer of Stabex
EDF
account
current
expenditure
account
Interest
the
amounts
regularised
TOTAL
Expenditure
Balance at 31.12

entered in
accounts/
be
to

CURRENT
OPERATIONS
1999

2000
140.84
1480.00

306.57
1100.00

STABEX

TOTAL

1999
407.53
461.934

2000
882.00
355.00

1999
714.10
1561.93

2000
1022.84
1835.00

570.00

-570.00

-10.50

70.23

32.69

51.84

22.19

122.07

1396.07
-1255.23
140.84

2261.07
-1477.56
783.51

902.15
-20.15
882.00

718.84
-70.61
648.23

2298.22
-1275.38
1022.84

2979.91
-1548.17
1431.74

€

The amount of cash available for all accounts at the end of 2000 was
€
783.51 million for current expenditure and
€
648.23 million, at the 2000 year end the Commission also had a Stabex credit of

1 431.74 million,
648.23 million for Stabex. In addition to the
618.50 with
1 266.73 million. The Committee of
some Member States, bringing the Stabex total to
Ambassadors took a decision in August 2000 to set up a
240 million reserve for Stabex, with
the balance due to be transferred gradually from the Stabex account to the EDF current
expenditure account.

€

€

€

€

The unusually high balance (783,51) of the current expenditure account at 31-12-2000 is due
to:

–

–

–

4

current expenditure for 2000 being lower than anticipated;

€

130 million structural adjustment facility payment due to be made just before the
the
close of the 2000 financial year could not in fact be paid until the beginning of January
2001, and thus appeared in the 2001 accounts;

€

350 million transfer made during the year from the Stabex account to the EDF
a
current expenditure account in order to fund the HIPC initiative; this transfer was made
in August 2000, a time when the EDF current expenditure account was registering a
particularly low balance, in order to prevent funding of the HIPC initiative from having
an effect on the calls for contributions, and with the intention of regularising the
transaction at a later date; that regularisation is in progress now, and the transfers of
€
221 million from the Stabex account to the EDF account planned for the first two
350 million transferred in 2000 was added to
220 million transfer from the Stabex account to the current expenditure account

quarters of 2001 were suspended. The
the

€

€

The amounts entered for calls for contributions to Stabex take account only of actual Member State
€
payments, and exclude credit. The amount of payments in 1999 (
461.93 million) exceeded the 1999
€
calls (

360 million) as a result of some Member States settling previous credit.

8

when the last call for funds was made in that year. This explains the
in the table above.

€

570 million total

As there is a special bank account for Stabex operations, the possibilities of reducing Stabex
funds depend entirely on the level of transfers decided on.

2.

FINANCIAL IMPLEMENTATION FORECASTS FOR 2001 (FIGURES REVISED MAY 2001)

Instruments

Decisions

Payments

adjustment

In EUR million
PROGRAMMABLE
AID
- National and regional
indicative programmes
- Structural
facility
STABEX
SYSMIN
RISK CAPITAL
INTEREST-RATE
SUBSIDIES
EMERGENCY AID
AID FOR REFUGEES
HIPC
TOTAL

2.1.

Decisions

EDF6

EDF7

EDF8

TOT

EDF6

EDF7

EDF8

TOT

400

1 113

1 513

400

770

1 170

350

350

783

1 133

659

1 009

343
0
137
220

50
20
0
60
1 600

343
0
137
220

50
20
0
60
2 000

400

124
317
50
100

30
20
0
300
1 600

124
317
50
150

30
20
0
300
2 000

50

400

Forecasts for decisions were revised downwards from the November 2000 forecasts. The latter
had been based on statements made when the Cotonou Agreement was negotiated. The
Commission decided to revise the figures downwards in order to reflect reality on the ground:

the time needed for ratification of the 9th EDF had been underestimated;

the sum left over from the 6th, 7th and 8th EDFs which could be committed in 2001

€

and 2002 was

4 230 million;

2001 sees us entering a new programming cycle, and past experience has shown that

the time and energy involved cause a large drop in the number of decisions;

neither the additional heading for “other initiatives” introduced into the November 2000
forecasts to take account of the Commission’s intention to present operations for a
number of ACP countries that were still at the study stage (health initiative), nor an
increase in venture-capital resources, in fact materialised.

€

We should stress that if we exclude 2000, when the sum for decisions swelled by
million to accommodate the HIPC initiative,
considerably above the average for 1995-99 (

1 000
forecast performance for 2001 remains

1 600 million).

€

–

–

–

–

9

2.2.

Payments

EDF expenditure at 31/05/2001 compared with the May 2001 forecasts

Instruments
In EUR million

05/2001 annual
forecasts

Implementation
at 31.05.20015

% implemented
at 31.05.2001

PROGRAMMABLE AID
- national and regional indicative
programmes
-

structural adjustment

facility

SYSMIN
RISK CAPITAL
INTEREST-RATE SUBSIDIES
EMERGENCY AID
AID FOR REFUGEES

Subtotal

STABEX
HIPC
TOTAL

1 133

1 009
124

50
150
30
20
0

1 383

317
300
2 000.00

467.18

262.70
204.48

10.22
77.31
9.19
7.27
0.00

571.17

259.28
0.00
830.45

41.23

26.04
164.90

20.44
51.54
30.63
36.35
-

41.30

81.79
0.00
41.52

€

Like the decision forecasts, payment forecasts were revised downwards, and the current
estimate is
2 000 million. The overall implementation rate at 31 May 2001 was 41.52%,
largely thanks to substantial Stabex disbursements, and there should be a further improvement,
because substantial payments under other instruments (including structural adjustment) are
expected by the end of the year. However, this good performance should not hide the low
130 million was paid out
disbursement rate for programmable aid. It should be noted that
under the structural adjustment facility in the last few days of December 2000 but not entered
in the accounts until the beginning of 2001. This is why payments exceed the forecast.

€

3.

IMPLEMENTATION FORECASTS FOR 2002

2002 estimates for decisions were revised downwards from the forecasts made in November
2000 (

3 500 million) for the same reason as the downward revision of the 2001 forecasts.

€

3 000 million. In its dealings with third countries,
Decisions in the pipeline amount to
however, the Commission is also dependent on a number of external factors which cannot, by
their nature, be foreseen (political instability, armed conflict, natural disasters). These factors
can upset a forecast at any time.

€

€
The estimated level of payments (
2 050 million in November
2000) has, by contrast, been revised upwards somewhat. For the second year in a row, it should
2 billion. A more precise estimated breakdown of payments by instrument is currently
exceed
being produced with the help of the delegations in the ACP countries; initial results are
expected by the end of the first half of 2001, and should provide more reliable data.

2 100 million, compared to

€

€

5

Final and unsettled transactions.

10

In order to cope with these payments, the financial needs for 2002 (due to be examined in
November 2001) are expected to be around

2 million.

€

The above forecast of financial requirements is based on the following:

€

million

Balance at 31/12/2000
Comprising:

- reserve (see 1.2.2.)
- amount due for transfer

Calls due in 2001
Reduction in the second call for 2001
Transfer from Stabex account to EDF
current expenditure account
Forecast expenditure 2001
2000 SAF postponed until 2001
Forecast reduction on 3rd and 4th 2001
calls
Member States’ Stabex credit to be called
in by 31/12/01

Forecast balance at 31/12/2001

2002 foreseeable expenditure

2002 foreseeable requirements

Forecast balance at 31/12/2002

Current operations

783.51

1 415.00
-129.00

535.00
-1 683.00
-130.00

-307.00

484.51

-2 100.00

2 000.00

384.51

Stabex
648.236
240.00
408.23

0.00

-535.00
-317.00
0.00

0.00

618.50

414.73

-414.73

0.00

0

€

The transfer from the Stabex account to the EDF current expenditure account shown in this
350 million transfer made in 2000 to cover HIPC initiative
table takes account of the
535 million / see point 1.2.2.
payments (total 2001 transfer =
above). It also takes account of the
130 million in SAF payments made at the end of 2000 but
not entered in the accounts until the beginning of 2001 (not included in the 2001 forecasts / see
point 2.2 above).

350 million =

885 million -

€

€

€

€

To bring the level of funds down to a reasonable sum by the end of December 2001, the plan is
to reduce the last two calls for contributions of the year by

200 million.

€

6

Excluding sums owed by Member States and interest generated in managing the bank accounts.

11

ANNEXES

12

Annex 1: Contributions to the EDF for 2001

13

CONTRIBUTION TO THE EDF FOR 20017
current expenditure

7th EDF scale

COUNTRY

EDF %

20/01/01

1/04/01

1/07/01

1/11/01

TOTAL 2001

TOTAL AMOUNT
NECESSARY

- Stabex transfer

600 000 000.00

550 000 000.00

600 000 000.00

550 000 000.00

2 300 000 000.00

221 000 000.00

221 000 000.00

221 000 000.00

222 000 000.00

885 000 000.00

NET AMOUNT FOR CALLS

379 000 000.00

329 000 000.00

379 000 000.00

328 000 000.00

1 415 000 000.00

GERMANY

BELGIUM

DENMARK

SPAIN

FRANCE

GREECE

IRELAND

ITALY

LUXEMBOURG

NETHERLANDS

PORTUGAL

UNITED KINGDOM

TOTAL

25.96

3.96

2.07

5.90

24.37

1.22

0.55

12.96

0.19

5.57

0.88

16.37

100.00

98 388 400.00

85 408 400.00

98 388 400.00

85 148 800.00

367 334 000.00

15 008 400.00

13 028 400.00

15 008 400.00

12 988 800.00

56 034 000.00

7 845 300.00

6 810 300.00

7 845 300.00

6 789 600.00

29 290 500.00

22 361 000.00

19 411 000.00

22 361 000.00

19 352 000.00

83 485 000.00

92 362 300.00

80 177 300.00

92 362 300.00

79 933 600.00

344 835 500.00

4 623 800.00

4 013 800.00

4 623 800.00

4 001 600.00

17 263 000.00

2 084 500.00

1 809 500.00

2 084 500.00

1 804 000.00

7 782 500.00

49 118 400.00

42 638 400.00

49 118 400.00

42 508 800.00

183 384 000.00

720 100.00

625 100.00

720 100.00

623 200.00

2 688 500.00

21 110 300.00

18 325 300.00

21 110 300.00

18 269 600.00

78 815 500.00

3 335 200.00

2 895 200.00

3 335 200.00

2 886 400.00

12 452 000.00

62 042 300.00

53 857 300.00

62 042 300.00

53 693 600.00

231 635 500.00

379 000 000.00

329 000 000.00

379 000 000.00

328 000 000.00

1 415 000 000.00

7

This table shows the figures to which the Member States agreed in December 2000. However, the second call was reduced to
reduced.

€

200 million and the third should be similarly

14

Annex 2: Summary statements of management accounts at 31.12.2000.

15

CONSOLIDATED EDF ACCOUNTS AT 31.12.2000

ALLOCATIONS

6th EDF

7th EDF

8th EDF

6th, 7th and 8th
EDFs

Programmable aid:

5 174 272

6 070 641

6 547 863

17 792 775

Overall reserve

9 584

47 400

1 376 455

1.433.439

Structural adjustment (SAF)

6 000

1 152 645

1 650 000

2.808.645

Non-programmable aid

2 529 174

3 778 708

3 770 797

10.078.679

Transfers to other funds

110 051

433 641

Miscellaneous receipts

31 934

543.692

31 934

TOTAL

7 829 081

11 514 969

13 345 115

32 689 165

ED
F

6

7

8

6

7

8

6

7

8

DECISIONS

TOTAL

DELEGATED
APPROPRIATIONS

TOTAL

PAYMENTS

TOTAL

CUMULATIVE TOTAL

ANNUAL FIGURES

As at
31/12/00

In % of
allocations Pre-1996 total

1996

1997

1998

1999

2000

7 496 083

10 754 495

8 348 082

26 598 659

7 258 510

9 363 127

3 796 288

20 417 926

7 136 123

8 499 377

1 980 296

17 615 796

96%

93%

63%

93%

81%

28%

91%

74%

15%

7 562 427

(53 008)

24 216

(44 644)

8 708 859

1 017 873

591 769

116 834

(22 719)

205 290

29 811

113 870

2 224 097

2 510 248

3 613 736

16 271 286

964 865

615 985

2 296 287

2 692 819

3 757 417

6 367 963

120 457

109 117

563 443

6 042 922

1 259 557

852 298

563 443

893 967

66 889

350 166

931 547

30 641

294 741

1 970 775

12 410 885

1 380 014

961 415

2 020 853

1 348 602

2 296 156

6 404 668

199 131

173 843

153 872

4 417 887

1 118 250

1 038 852

819 131

466 621

103 771

627 066

544 540

100 838

478 191

969 135

10 822 555

1 317 381

1 212 695

1 439 624

1 275 377

1 548 165

16

EDF consolidated accounts at 31.12.2000:         Annual
figures (EUR '000)

4.000.000

3.500.000

3.000.000

2.500.000

2.000.000

1.500.000

1.000.000

500.000

(500.000)

1996 1997 1998 1999 2000

1996 1997 1998 1999 2000

1996 1997 1998 1999 2000

DECISIONS           DELEGATED APPROPRIATIONS                 PAYMENTS

6th EDF 7th EDF 8th EDF

CONSOLIDATED EDF ACCOUNTS AT 31.12.2000

€
’000)
Type of aid (

PROGRAMMABLE AID (NIP)
Allocation
Decisions
Delegated appropriations
Payments

OVERALL RESERVE
STRUCTURAL ADJUSTMENT (SAF)
Allocation
Decisions
Delegated appropriations
Payments

NON-PROGRAMMABLE AID
Allocation
Decisions
Delegated appropriations
Payments

TRANSFERS FROM OTHER FUNDS
Allocation
Decisions
Delegated appropriations
Payments

MISCELLANEOUS RECEIPTS
TOTAL
Allocation
Decisions
Delegated appropriations
Payments

%

(1)

83
57
51

89
71
64

88
78
65

84
69
59

81
62
54

6th EDF

5 174 272
4 891 441
4 681 573
4 578 369

%

(1)

95
90
88

7th EDF

6 070 641
5 531 292
4 562 012
3 953 546

%

(1)

91
75
65

8th EDF

6 547 863
4 360 903
931 650
453 871

%

(1)

67
14
7

TOTAL

17 792 775
14 783 635
10 175 235
8 985 786

47 400

1 376 455

1 433 439

82
51
39

70
53
23

2 808 645
2 510 680
2 003 747
1 784 765

10 078 679
8 846 971
7 863 762
6 521 798

543 692
457 372
375 182
323 447

31 934

13 345 115
8 348 082
3 796 288
1 980 296

63
28
15

32 689 165
26 598 659
20 417 926
17 615 796

9 584

6 000
6 000
5 995
5 407

2 529 174
2 509 404
2 485 060
2 468 730

110 051
89 238
85 881
83 618

7 829 081
7 496 083
7 258 510
7 136 123

100
100
90

1 152 645
1 152 645
1 149 321
1 137 482

100
100
99

1 650 000
1 352 035
848 430
641 877

3 770 797
2 635 144
2 016 208
884 549

3 778 708
3 702 423
3 362 494
3 168 519

433 641
368 135
289 301
239 829

31 934

11 514 969
10 754 495
9 363 127
8 499 377

99
98
98

81
78
76

96
93
91

98
89
84

85
67
55

93
81
74

17