Proposal for a Council Decision fixing the financial contributions to be paid by the Member States to the European Development Fund (second instalment for 2003)
Date: 2003-06-13
Institutions: European Commission
Subjects: European Development Fund, Member States' contribution, financial management, financial regulation, financial year, implementation of the budget

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 13.6.2003
COM(2003) 353 final

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL

Financial Information on the European Development Funds

Proposal for a

COUNCIL DECISION

fixing the financial contributions to be paid by the Member States to the European
Development Fund (second instalment for 2003)

(presented by the Commission)

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL

Financial Information on the European Development Funds

TABLE OF CONTENTS

Introduction ................................................................................................................................ 3

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

1.

1.1.

1.2.

2.

2.1.

2.2.

2.3.

Implementation of the European Development Funds at 31.12.2002.......................... 6

Summary by Fund and by instrument (at 31.12.2002) ................................................ 6

Implementation of the EDFs in 2002........................................................................... 8

Financial implementation forecasts for 2003 and 2004 ............................................. 11

Entry into force of the Cotonou Agreement............................................................... 11

Overall outlook for implementation of the EDF........................................................ 11

Decisions.................................................................................................................... 11

2.3.1.

2003

....................................................................................................................... 11

2.3.2.

2004

....................................................................................................................... 12

2.4.

Payments .................................................................................................................... 12

2.4.1.

2003

....................................................................................................................... 12

2.4.2.

2004

....................................................................................................................... 12

2.5.

2.6.

Calls for contributions scheduled for 2003 and 2004 ................................................ 13

The contributions to be paid by the Member States in July 2003.............................. 14

2

Introduction

This  document  is  to  be  annexed  to  the  draft  budget  for  2004,  in  accordance  with  the  1979
agreements on budgetary procedure.

Article  8(3)  of  the  Financial  Regulation  of  27  March  2003  applicable  to  the  9th  European
Development Fund1 requires the Commission to make this document available to the Council
by  15 June,  stipulating  that  this  information  serves  as  a  basis  for  an  interim  estimate  of
commitments and disbursements.

In accordance with Article 38 of the Financial Regulation, this communication is accompanied
by a proposal for a Council Decision on the instalment of the contributions to be paid by the
Member States in July 2003.

As in previous years, this document shows:

-

-

-

EDF implementation at 31.12.2002;

financial implementation forecasts for the current year (2003);

expenditure forecasts for 2004.

Further details on implementation of the European Development Funds (EDFs) at 31.12.2002
will  be  given  in  the  Commission  communication  to  the  Court  of  Auditors,  the  European
Parliament and the Council containing the balance sheets and accounts of the 6th, 7th and 8th
EDFs for 2002.

1

OJ L 83, 1.4.2003, p. 1.

3

                                                
Summary

1.

Decisions

After slowing down somewhat in 2001, the rate of decisions picked up again in 2002
(€2 114.5 million in new decisions), thanks primarily to the provision by the Council
of new funding as a transitional measure pending the entry into force of the ACP-EU
Partnership Agreement signed in Cotonou.2 These measures enabled the Commission
to  commit  a  considerable  sum  (€793 million)  and  so  offset  some  of  the  shortfall  in
resources for the  countries performing best.  In  short, decisions slightly exceeded the
target  (€2 000 million)  fixed  in  the  communications  of  June3  and  November 2002.4
After  deducting  decommitments  amounting  to  €346.1 million,  the  net  figure  is
€1 768.4 million.

For 2003 and 2004, in order to get more reliable forecasts the Commission went over
each  individual  (project)  dossier  carefully  with  the  delegations.  Taking  into  account
the  figures  supplied  by  the  EIB  for  its  own  instruments  (risk  capital,  investment
facility  and interest  rate  subsidies)  we  arrive  at  €2  500  million  of  new  decisions  for
2003  (€200  million  up  on  the  figure  in  the  November  2002  Communication)  and
confirmation  of  the  estimated  on  €3 275  million  for  2004.  The  sharp  rise  in  the
forecast for 2003 can be attributed to the Commission’s efforts to improve the EDF’s
performance.

2.

Payments

With payments amounting to €1 902.5 million in 2002, the rate of implementation of
the EDF was slightly lower than that recorded in 2001 (€2 142.49 million). However,
the figures recorded for 2002 are still above the average for 1989-2001 (about €1 600
million). It was not possible to achieve the target figure of €2 000 million set by the
Commission in June 2002. This is largely due to the fact that there was no need to pay
the  final  instalment  of  €149 million  to  the  HIPC  (debt  relief)  initiative  because  a
number  of  ACP  countries  notched  up  delays  in  achieving  the  objectives  that  would
have entitled them to such aid. The Commission had warned of this development in its
communication of November 2002.
With  recoveries  and  repayments  amounting  to  €49.8 million,  the  net  total  of
disbursements was €1 852.7 million.

A new payment estimate has been drawn up for 2003 and 2004 covering both current
projects and those in the pipeline. Taking the EIB’s estimates into  account  we  get  a
figure of €2 100 millions for 2003, not counting forecast transfers under Stabex (€191
million for Sudan) or the HIPC instrument (approximately €210 million, including the
€149  millions  from  the  third  tranche  not  used  in  2002).  The  Court  of  Auditors  has
ruled  that  these  transfers  should  not  be  entered  in  the  accounts  as  payments.  The
estimate of €2 100 million is on the cautious side. The Commission will be doing its
utmost to speed up the rate of disbursement in order to meet a more ambitious target

2

3

4

Decision No 1/2000 of the ACP-EC Council of Ministers of 27 July 2000.
COM(2002) 372 final of 9.7.2002.
COM(2002) 673 final of 28.11.2002.

4

                                                
by  the  year  end,  and  will  re-assess  the  situation  in  its  Communication  in  October
2003.

The total estimated for 2004 is €2 600 million, confirming last year’s forecast orders
of magnitude.

3.

Calls for contributions from the Member States

As the Stabex money is already available in a special account, €2 250 million should
cover  requirements.  The  first  two  calls  for  contribution  totalled  €950  million,  so
€1 300  million  still  needs  to  be  paid  by  the  end  of  this  year.  The  Commission  is
proposing that the Member States should pay €850 million as the July 2003 tranche,
making it possible to transfer the final €149 million HIPC instalment to the EIB. The
current estimate for the last 2003 call for contributions is €450 million.

In  view  of  the  projected  start-of-year  and  end-of-year  balances,  the  Member  States’
contributions for 2004 are reckoned at €2 550 million.

As  for  snubsequent  years,  the  Commission  will  be  able  to  honour  its  commitments  and
mobilise  the  funds  made  available  under  the  Cotonou  Agreement,  including  the  balances
remaining from previous EDFs (the 6th, 7th and 8th), over a period of five years.

5

1.

IMPLEMENTATION OF THE EUROPEAN DEVELOPMENT FUNDS AT 31.12.2002

1.1.

Summary by Fund and by instrument (at 31.12.2002)

6th, 7th and 8th EDFs ACP and OCT

6th EDF

Allocations

Decisions

Assigned funds

Payments

National indicative programmes

4 253 044 257.72

3 980 869 838.84 3 880 577 942.65 3 816 842 108.92

Regional cooperation

919 704 621.92

884 620 868.17

861 237 066.68

852 143 643.17

Structural adjustment facility

6 000 000.00

6 000 000.00

5 334 037.79

5 334 037.79

Interest-rate subsidies

84 078 492.28

84 078 492.28

84 078 492.28

84 078 492.28

Risk capital

Other instruments

9th EDF intra-ACP

Overall reserve

560 000 000.00

544 323 483.54

543 153 483.54

537 212 417.12

1 992 864 982.17

1 974 828 395.30 1 944 539 794.36 1 939 504 041.37

10 000 000.00

10 000 000.00

3 388 343.78

0.00

0.00

0.00

0.00

0.00

Position at 31 12 2002

7 829 080 697.87

7 484 721 078.13 7 318 920 817.30 7 235 114 740.65

7th EDF

Allocations

Decisions

Assigned funds

Payments

National indicative programmes

4 864 800 000.00

4 536 596 865.36

3 936 915 826.13 3 561 274 850.58

Regional cooperation

1 202 954 089.58

1 167 837 087.84

1 036 810 874.33

926 847 111.67

Structural adjustment facility

1 151 386 344.58

1 151 386 344.58

1 148 619 063.94 1 148 039 942.48

Interest-rate subsidies

224 000 000.00

211 648 499.97

211 648 499.97

199 777 143.84

Risk capital

Other instruments

HIPC (debt relief)

9th EDF intra-ACP (interim
measures)

Overall reserve

Total

850 000 000.00

765 520 374.26

760 020 374.26

723 806 774.76

3 079 949 946.94

3 005 708 030.86

2 851 351 491.42 2 661 644 488.35

40 000 000.00

40 000 000.00

40 000 000.00

11 030 000.00

50 000 000.00

50 000 000.00

16 792 139.52

0.00

0.00

0.00

0.00

0.00

11 479 882 520.62 10 928 697 202.87

9 985 366 130.05 9 232 420 311.68

Miscellaneous revenue

31 844 952.08

0.00

0.00

0.00

Position at 31 12 2002

11 511 727 472.70 10 928 697 202.87

9 985 366 130.05 9 232 420 311.68

8th EDF

Allocations

Decisions

Assigned funds

Payments

National indicative programmes

4 996 594 758.00

4 283 215 308.18

1 978 497 613.08 1 099 915 321.67

Regional cooperation

1 784 517 742.00

1 430 046 819.60

727 705 933.05

417 709 175.10

Structural adjustment facility

1 650 000 000.00

1 613 098 944.70

1 302 962 713.44 1 219 480 683.45

Interest-rate subsidies

178 500 000.00

114 013 938.75

114 013 938.75

49 605 974.95

Risk capital

Other instruments

HIPC (debt relief)

1 380 000 000.00

1 195 482 298.39

1 084 343 192.39

506 188 282.21

1 091 736 284.68

1 079 062 449.08

965 011 218.58

798 275 138.90

1 185 000 000.00

1 060 000 000.00

1 000 000 000.00

880 000 000.00

9th EDF national (interim measures)

1 200 000 000.00

732 875 000.00

347 381 600.00

97 674 831.24

9th EDF regional (interim measures)

25 000 000.00

Overall reserve

8 216 501.25

0.00

0.00

0.00

0.00

0.00

0.00

Position at 31 12 2002

13 499 565 285.93 11 507 794 758.70

7 519 916 209.29 5 068 849 407.52

6

6th, 7th and 8th EDFs

Allocations

Decisions

Assigned funds5

Payments

National indicative programmes

14 114 439 015.72 12 800 682 012.38

9 795 991 381.86

8 478 032 281.17

Regional cooperation

3 907 176 453.50

3 482 504 775.61

2 625 753 874.06

2 196 699 929.94

Structural adjustment facility

2 807 386 344.58

2 770 485 289.28

2 456 915 815.17

2 372 854 663.72

Interest-rate subsidies

486 578 492.28

409 740 931.00

409 740 931.00

333 461 611.07

Risk capital
Other instruments6

HIPC (debt relief)

2 790 000 000.00

2 505 326 156.19

2 387 517 050.19

1 767 207 474.09

6 164 551 213.79

6 059 598 875.24

5 760 902 504.36

5 399 423 668.62

1 225 000 000.00

1 100 000 000.00

1 040 000 000.00

891 030 000.00

9th EDF national (interim measures)

1 200 000 000.00

732 875 000.00

347 381 600.00

97 674 831.24

9th EDF regional (interim measures)

25 000 000.00

0.00

9th EDF intra-ACP (interim measures)

60 000 000.00

60 000 000.00

28 396 984.55

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Overall reserve

Total

Miscellaneous revenue

Position at 31 12 2002

32 808 528 504.42 29 921 213 039.70 24 824 203 156.64 21 536 384 459.85

31 844 952.08

0.00

0.00

0.00

32 840 373 456.50 29 921 213 039.70 24 824 203 156.64 21 536 384 459.85

5

6

Contracts, grants and programme estimates.
Emergency aid, aid for refugees, Stabex, Sysmin, transfers from previous EDFs, use of interest.

7

                                                
1.2.

Implementation of the EDFs in 2002

New  decisions  in  2002  totalled  €2 114 million,  slightly  more  than  targeted
(€2 000 million).  A  relatively  large  sum  was  cleared  (€346 million),  taking  “net”
decisions to €1 768 million. Payments amounted to €1 902 million. Taking account of
recoveries of €49 million, “net” payments stood at €1 853 million. As already pointed
out in November’s communication, the Commission had to revise its initial target of
€2000 million downwards (to €1 850 million) to take account of the fact that the EIB
did not need a €150 million HIPC(debt-relief) instalment to be paid before the end of
2002.

The  following  chart  shows  the  trend  in  new  decisions  (before  decommitment)  and
payments (before recovery). Since 1989, decisions have averaged €2 033 million and
payments €1 594 million.

EDF - Consolidated accounts (31.12.2002)

€
0
0
0

5.000.000

4.000.000

3.000.000

2.000.000

1.000.000

0

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

DECISIONS 1.505.310 953.250 1.432.600 2.236.450 1.843.040 2.688.670 1.874.270 1.538.110 784.350 2.606.340 2.958.050 4.006.880 1.920.566 2.114.498
PAYMENTS 1.297.020 1.256.630 1.191.300 1.984.090 1.443.240 1.859.930 1.785.070 1.508.780 1.382.260 1.595.440 1.352.290 1.640.390 2.124.489 1.902.494

Start of 7th EDF

Start of 8th EDF

8

 
For  information  purposes,  the  following  table  breaks  down  new  decisions  and
payments by instrument for the years 2001 and 2002.

Instrument

New decisions

TOTAL -National and regional
indicative programmes and other
regional instruments

Structural adjustment facility
Stabex

Sysmin

Risk capital

Interest-rate subsidies

Emergency aid

Aid for refugees

HIPC debt-relief initiative

Using transferred funds

TOTAL - Excluding indicative
programmes

Part A (Cotonou)

Part B (Cotonou)

Regional cooperation
intra-ACP (Cotonou)

TOTAL - Interim measures (Cotonou)

Use of interest

TOTAL

€ million

Payments
(before recoveries)
2002
2001

789

321
353

48

186

16

31

8

350

20

1 333

2

974

289
2

87

188

19

18

19

180

27

829

85

13

0

98

1

2001

1 111

289
1587

50

407

20

21

41

0

5

785

25

2002

835

109
0

0

220

17

17

52

60

7

481

478

255

60

793

5

1 921

2 114

2 124

1 902

Despite the delays in the entry into force of the Cotonou Agreement, the volume of decisions
adopted  in  2002  substantially  exceeded  that  of  2001.  This  was  made  possible  by  the  interim
measures  adopted  by  the  Council  in  2000,  pending  the  Agreement’s  entry  into  force.  The
Commission committed €793 million (38% of commitments) in 2002. Decisions on the 6th, 7th
and  8th  EDFs  were  down  on  2001.  This  is  due  to  the  fact  that  the  sums  available  for
commitment  are  steadily  shrinking.  At  31.12.2002  €32 840 million  had  been  allocated  to  the
ACP  countries  and  OCT.  Of  this  amount,  €29 920  million  had  been  committed,  leaving  an
available  balance  of  about  €2 900 million,  a  relatively  large  proportion  of  which  had  been
allocated, notably to countries in crisis,  and was  therefore  no  longer  available  for  projects  in
new sectors.

For payments, it was not possible to achieve the level recorded in 2001. This was because an
economic  downturn  and  other  problems  in  certain  ACP  countries  caused  the  EIB  to  defer  to
2003 the payment of €149 million to the HIPC initiative. The payment is due to be made this
summer.

9

The  table  below  gives  the  start-of-year  and  end-of-year  balances,  the  Member  States’
contributions  to  the  EDF  and  payments  (disbursements).  It  shows  that  large  sums  were
transferred from  Stabex  to  current  operations, both in 2001 and 2002 (€748.1 million for the
two  years  together).  This  reduced  considerably  the  call  for  new  financial  resources  from  the
Member  States.  The  transfers  were  performed  by  the  Commission  in  accordance  with  the
decision  taken  by  the  Committee  of  Ambassadors  in  August  2000.  Under  the  decision,  the
Commission is required to transfer the balance remaining in the Stabex account, less suspended
payments, to the current-expenditure account.

CURRENT
OPERATIONS

STABEX

TOTAL

2001

2002

2001

2002

2001

2002

€ million

783.51
781.46

391.17
1485.950

648.23
348.62

220.21
218.70

1 431.74
1 130.08

611.38
1 704.65

492.00

256.10

-492.00

-256.11

-

-

48.84

36.43

68.57

29.60

117.41

66.02

2 105.81

2 169.65

573.42

212.40

2 679.23

2 382.05

Resources

Carry-over at 01.01
Call for
contributions/recovery
of Stabex debts
Transfer from the Stabex
account to the EDF
current-expenditure
account
Interest entered in the
accounts
Total

Payments

-1 714.64

-1 851.10

-353.22

-1.627

-2 067.86

-1 852.72

Balance at 31.12

391.178

318.559

220.21

210.78

611.38

529.33

The amount of cash available for all accounts at the end of 2002 was €529 million, including
€319  million  under  current  expenditure  and  €210  million  for  Stabex.  These  amounts  can  be
considered normal.

The €319 million includes €88 million paid in advance (towards the end of December 2002) by
certain Member States for the calls for 2003. Without these payments, the balance would have
been  €230  million.  For  Stabex,  just  over  €200  million  had  to  be  kept  available  for  two
suspended payments, one for Sudan and the other for Togo. These are the last two payments to
be made by the Stabex instrument.

7

8

9

Not counting transfers from secured accounts.
Including an advance payment of €83.50 million in contributions for 2002.
Including an advance payment of €88.45 million in contributions for 2003.

10

                                                
2.

FINANCIAL IMPLEMENTATION FORECASTS FOR 2003 AND 2004

2.1.

Entry into force of the Cotonou Agreement

The  entry  into  force  of  the  9th  EDF  Financial  Regulation  in  April 2003  has
considerably altered the procedure whereby contributions are called for and paid. Now
Member States have to pay contributions for 9th EDF operations managed by the EIB
(the  investment  facility  and  interest-rate  subsidies)  directly  to  the  Bank.  However,
contributions  for  projects  committed  under  previous  EDFs  (risk  capital  and
interest-rate subsidies) will continue to be paid to the Commission. The Commission
will henceforth present the EIB’s estimates for its new 9th EDF instruments separately
from the figures  for other measures (all instruments of previous EDFs and  those  9th
EDF instruments managed by the Commission).

2.2.

Overall outlook for implementation of the EDF

The  Commission,  in  close  cooperation  with  the  delegations,  drew  up  a  forecast  of
decisions and payments for 2003 and 2004 for each ACP country. Each commitment
was  subjected  to  risk  analysis.  The  plan  is  to  update  that  analysis  regularly  in  the
future.

The Commission believes that it will be able to commit the funds made available by
the Cotonou Agreement (including the balances remaining from the 6th, 7th and  8th
EDFs  to  be  transferred  to  the  9th  EDF)  within  a  period  of  five  years.  The  rate  of
commitments  should  increase  significantly  from  2003.  Payments  are  expected  to
remain relatively modest in 2003 but to rise from 2004.

2.3.

Decisions

2.3.1.

2003

The  Commission  expects  new  decisions  in  2003  to  total  €2 500 million,  breaking
down as follows:

(cid:1)  €345 million for the EIB from the 9th EDF;

(cid:1)  €2 155 million for the instruments managed by the Commission (including former

EIB instruments).

The  amount  of  €2 500 million  is  considerably  higher  than  the  estimate  presented  in
November 2002 (€2 300 million). It reflects the Commission’s intention to improve its
capacity to manage the EDF. The new forecast is some €400 million higher than the
amount implemented in 2002 (€2 114 million).

The forecasts for 2003 received by the Commission from the EIB are €152 million for
instruments  financed  by  the  8th  EDF  (€24 million  for  interest-rate  subsidies)  and
€345 million  for  the  9th  EDF  (“investment  facility”,  excluding  the  interest-rate
subsidies currently provided for).

11

2.3.2.

2004

The Commission reckons it will be possible to accelerate decisions further in 2004. In
2004  the  third  and  final  phase  of  the  devolution  of  the  Commission’s  departments
should  be  complete  and  producing  gains.  Note  that  this  third  phase  concerns  most
ACP countries. On the basis of the projects in the pipeline, the Commission believes
that  it  will  be  able  to  achieve  the  targets  for  2004  announced  in  November 2002,
namely  €3 275 million,  €400 million  of  it  for  9th  EDF  instruments  managed  by  the
EIB.

2.4.

Payments

2.4.1.

2003

Particular  attention  has  been  given  to  updating  payment  estimates.  Each  delegation
drew up estimates for each of its projects. The resulting total was about €2 100 million
(including the  EIB’s  needs).  The  estimate  of  €2  100  million is  on  the  cautious  side.
The Commission will be doing its utmost to speed up the rate of disbursement in order
to meet a more ambitious target by the year end, and will re-assess the situation in its
Communication in October.

The  payments  estimates  does  not  include  transfers  under  Stabex  (€191  million  for
Sudan)  or  the  HIPC  instrument  (approximately  €210  million,  including  the
€149 millions  from  the  third  tranche  not  used  in  2002).  The  Court  of  Auditors  has
ruled that these transfers should not be entered in the accounts as payments.

The sum of €2 100 million is broken down as follows:

(cid:1)  €60 million for the EIB from the 9th EDF;

(cid:1)  €2 040  million  for  the  instruments  managed  by  the  Commission  (including  EIB

instruments committed under the 8th EDF).

At  30 April  the  payments  stood  at  €543 million,  including  sums  in  the  process  of
being  validated.  This  represents  26%  of  the  new  forecast  (€2 100 million)  and  is
consistent  with  the  rate  observed  in  the  past  at  the  same  period  (between  19%  and
27% over the past three years).

2.4.2.

2004

For  2004  the  forecast  total  is  €2 600 million  (including  the  EIB’s  needs).  The
€2 600 million comprises:

(cid:1)  €225  million  for  the  EIB  from  the  9th  EDF,  €25 million  of  it  for  interest-rate

subsidies;

(cid:1)  €2 375  million  for  the  instruments  managed  by  the  Commission  (including  EIB

instruments committed under the 8th EDF).

This sum is considerably higher than in the past and reflects the Commission’s goal of
improving and accelerating implementation of the EDF. The estimate is based on the
assessment of the probable implementation of each project and takes account, in so far

12

as  is  possible,  of  all  known  factors  likely  to  slow  down  or  speed  up  disbursements.
Account  is  also  taken  of  the  implications  of  the  devolution  of  Commission
departments. However, even more than for 2003, since it is even further away in time,
the figures must be treated with caution.

2.5.

Calls for contributions scheduled for 2003 and 2004

The Member States’ contributions will have to cover the estimated €2 100 needed for
payments plus the approximately €200 million transfer for the HIPC instrument. The
€191 million likely to be transferred to Sudan under Stabex, on the other hand, does
not require any further financial contribution from the Member States as the money is
already in the Commission’s special Stabex account.

The following table sets out the financial forecasts for 2003 and 2004.

at 

2003
Balance 
contributions  paid  before  1 January 2003
(€88 million)

01.01.2003  minus 

€ million

Current
operations

Stabex

230

211

Payment of contributions for 2003 by the Member
States

Interest

Transfer from Stabex to current-expenditure account

Payments and transfers10

Forecast balance at 31.12.2003

For the Commission

For the EIB

Payment of contributions for 2004 by the Member
States

Interest

Payments (disbursements)

Forecast balance at 31/12/2004

2 250

10

25

-2 250

265

225

40

-2 550

15

2 600

230

5

-25

-191

1211

12

10

11

Minus €50 million for recoveries/repayments.
The Commission has to keep this amount in the Stabex account in case a suspended payment to Togo has
to be made.

13

                                                
for 

though
recoveries/repayments 
Allowing  €50  million 
€2 250 million  should  be  sufficient  to  meet  requirements.  On  the  basis  of  the
information  currently  available,  the  Commission  and  the  EIB  should  end  2003  with
balances  of  €225  million  and  €40 million  respectively  on  their  “current  operations”
accounts.  This  sum  should  enable  the  Commission  and  the  EIB  to  bridge  the  gap
between the end of 2003 and the payment of the first call for contributions for 2004,
which is scheduled for 15 January 2004.

looks  as 

it  now 

Given  that  the  first  two  calls  were  for  a  total  of  €950 million,  the  latter  two  should
together  amount to €1 300 million.  As already noted, the figures  are  on  the  cautious
side. The Commission plans to update its estimates in October and might at that time
propose an adjustment to the final tranche.

The estimated amount of contributions for 2004 is €2 550 million.

2.6.

The contributions to be paid by the Member States in July 2003

The  third  instalment  for  2003  (the  second  under  the  new  procedure  laid  down  in
Article 38  of  the  9th  EDF  Financial  Regulation)  should  cover  a  period  from  about
mid-July  to  about  mid-November.  In  the  case  of  the  instruments  managed  by  the
Commission, about 80% of payments were, in the past, made between 1 January and
21 November  (new  deadline  for  payments).  Taking  account  of  the  EIB’s  forecasts
(€50 million from the 9th EDF and €100 million from previous EDFs) and the transfer
of the final instalment for the HIPC initiative (€149 million), the sum to be paid to the
Commission is €800 million and that to the EIB €50 million.

The annexed table gives the scale for contributions to the 8th EDF, which is the basis
on which  funds  are currently called,  and  the amounts  that  the  Commission  proposes
each Member State should pay for the July and (indicative) November instalments.

14

ANNEX

CONTRIBUTIONS TO THE EDF FOR 2003

COUNTRY

SCALE

January call

April call

July call

November call

8th EDF

%

(1)

(1)

payable to
the EIB
(2)

payable to
the Commission
(2)

payable to
the EIB
(2)

payable to
the Commission
(2)

TOTAL

of
calls

GERMANY

BELGIUM

DENMARK

SPAIN

FRANCE

GREECE

IRELAND

ITALY

LUXEMBOURG

NETHERLANDS

PORTUGAL

UNITED
KINGDOM

AUSTRIA

FINLAND

SWEDEN

23.36

105 120 000

116 800 000

11 680 000

186 880 000

11 680 000

93 440 000

525 600 000

3.92

2.14

5.84

17 640 000

9 630 000

26 280 000

19 600 000

10 700 000

29 200 000

1 960 000

1 070 000

2 920 000

31 360 000

17 120 000

46 720 000

1 960 000

1 070 000

2 920 000

15 680 000

8 560 000

88 200 000

48 150 000

23 360 000

131 400 000

24.30

109 350 000

121 500 000

12 150 000

194 400 000

12 150 000

97 200 000

546 750 000

1.25

0.62

12.54

0.29

5.22

0.97

5 625 000

2 790 000

56 430 000

1 305 000

23 490 000

4 365 000

6 250 000

3 100 000

62 700 000

1 450 000

26 100 000

4 850 000

625 000

310 000

10 000 000

4 960 000

6 270 000

100 320 000

145 000

2 610 000

485 000

2 320 000

41 760 000

7 760 000

625 000

310 000

6 270 000

145 000

2 610 000

485 000

5 000 000

2 480 000

28 125 000

13 950 000

50 160 000

282 150 000

1 160 000

6 525 000

20 880 000

117 450 000

3 880 000

21 825 000

12.69

57 105 000

63 450 000

6 345 000

101 520 000

6 345 000

50 760 000

285 525 000

2.65

1.48

2.73

11 925 000

13 250 000

6 660 000

7 400 000

12 285 000

13 650 000

1 325 000

740 000

1 365 000

21 200 000

11 840 000

21 840 000

1 325 000

10 600 000

740 000

5 920 000

1 365 000

10 920 000

59 625 000

33 300 000

61 425 000

TOTAL

100.00

450 000 000

500 000 000

50 000 000

800 000 000

50 000 000

400 000 000

2 250 000 000

(1) According to the provisions of the 8th EDF Financial Regulation.
(2) According to the provisions of the 9th EDF Financial Regulation.

15

EXPLANATORY MEMORANDUM

The entry into force of the 9th EDF Financial Regulation, and in particular Articles 8, 38, 40,
133 and 135 thereof, has significantly changed the procedure for calls for contributions by the
Member  States  to  finance  the  various  EDFs.  It  is  now  the  Council  which  decides,  on  a
proposal from the Commission, on each of the three instalments (four in the past). In the case
of the 9th EDF instruments  managed  by the  European  Investment Bank (EIB), the  Member
States will pay their contributions directly to the EIB. The contributions for other instruments
will continue to be paid to the Commission. The new schedule is laid down in Article 38 of
the  9th  EDF  Financial  Regulation.  Under  Article 133  of  the  Financial  Regulation,  the  new
procedure also applies to previous EDFs.

The  present  proposal  concerns  the  third  call  for  2003  (the  second  by  the  definition  in  the
9th EDF Financial Regulation). In accordance with Article 38 of the Financial Regulation, it
is  accompanied  by  the  communication  from  the  Commission  to  the  Council  setting  out
financial  information  on  the  EDF  for  the  purposes  of  the  2004  budget  procedure.  The
information in that communication should enable the Council to fix the contributions for this
instalment. In accordance with Article 121 of the 9th EDF Financial Regulation, the EIB has
sent  the  Commission  updated  estimates  of  payments  under  the  instruments  managed  by  the
Bank.

Under  Article  38(2)  of  the  9th  EDF  Financial  Regulation,  the  schedule  decided  for  this
instalment  is  as  follows:  (1)  a  proposal  is  submitted  to  the  Council  at  the  same  time  as  the
above communication, namely by 15 June 2003; (2) the Council decides on this instalment no
more than 21 calendar days after the Commission presents its proposal; (3) the Member States
pay  this  instalment  of  the  contributions  no  more  than  21  calendar  days  after  they  receive
notification of the Council decision.

Note that Article 40(4) of the  9th  EDF  Financial  Regulation  stipulates  that  a  Member  State
which fails to pay the instalment of contributions due by the deadline will be required to pay
interest on the amount unpaid; the arrangements for the payment  of  interest are  specified in
the same paragraph.

16

Proposal for a

COUNCIL DECISION

fixing the financial contributions to be paid by the Member States to the European
Development Fund (second instalment for 2003)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to the Partnership Agreement between the members of the African, Caribbean
and Pacific Group of States, of  the  one  part,  and  the  European  Community  and  its  Member
States, of the other part, signed in Cotonou on 23 June 2000,12

Having regard to the Internal Agreement on the Financing and Administration of Community
Aid signed in Brussels on 18 September 2000,13 and in particular Article 10 thereof,

Having  regard  to  the  Council  Decision  of  27  November  2001  on  the  association  of  the
overseas  countries  and  territories  with  the  European  Community  ("Overseas  Association
Decision"),14

Having regard to the Financial Regulation of 27 March 2003 applicable to the 9th European
Development Fund, and in particular Article 38(1) thereof,

Having regard to the proposal from the Commission,15

Whereas:

(1)

(2)

(3)

On 28 November 2002 the Commission sent the Council a statement of the payments
to be made in 2003 and the schedule of  calls for  contributions.  On  29 December  the
Council adopted the Decision laying down the 2003 schedule of calls for contributions
from the Member States to the EDF.

On  the  basis  of  that  Decision,  the  Commission  called,  in  December  2002  and
March 2003, for contributions of 450 million and 500 million euro respectively.

The second subparagraph of Article 38(2) of the 9th EDF Financial Regulation, which
entered  into  force  on  2 April 2003,  stipulates  that  the  proposal  for  the  second
instalment of the current year is to be presented by the Commission at the same time
as  the  communication  it  is  required  to  send  the  budgetary  authority,  as  part  of  the
budget procedure, by 15 June.

12

13

14

15

OJ L 317, 15.12.2000, p. 3.
OJ L 317, 15.12.2000, p. 355.
OJ L 314, 30.11.2001, p. 1.
OJ C …, …, p. …

17

                                                
(4)

(5)

The  second  subparagraph  of  Article  38(2)  of  the  9th  EDF  Financial  Regulation
stipulates that the Council is to decide on this instalment at the latest by 21 calendar
days  following  the  presentation  by  the  Commission  of  its  proposal,  and  that  the
Member States are to pay the contributions due under this instalment at the latest by
21  calendar  days  following  the  date  on  which  the  Council's  decision  is  notified  to
them.

Pursuant  to  the  second  subparagraph  of  Article  121  of  the  9th  EDF  Financial
Regulation,  the  European  Investment  Bank  has  sent  the  Commission  the  updated
estimates of commitments and payments needed to draw up the communication to the
budgetary authority.

(6)

Article  133(2)  and  (3)  of  the  9th  EDF  Financial  Regulation  stipulates  that  the
procedure for calling for contributions for the 9th EDF also apply to previous EDFs,

HAS ADOPTED THIS DECISION:

The  contributions  to  be  paid  by  the  Member  States  to  the  Commission  and  the  European
Investment Bank as the second instalment for 2003 are set out in the table in the Annex.

Article 1

This Decision is addressed to the Member States.

Done at Brussels,

For the Council
The President

18

ANNEX

Second instalment of contributions for 2003 (in euro)

to the European
Investment Bank

to the Commission

COUNTRY

GERMANY

BELGIUM

DENMARK

SPAIN

FRANCE

GREECE

IRELAND

ITALY

LUXEMBOURG

NETHERLANDS

PORTUGAL

UNITED KINGDOM

AUSTRIA

FINLAND

SWEDEN

TOTAL

11 680 000

1 960 000

1 070 000

2 920 000

12 150 000

625 000

310 000

6 270 000

145 000

2 610 000

485 000

6 345 000

1 325 000

740 000

1 365 000

186 880 000

31 360 000

17 120 000

46 720 000

194 400 000

10 000 000

4 960 000

100 320 000

2 320 000

41 760 000

7 760 000

101 520 000

21 200 000

11 840 000

21 840 000

50 000 000

800 000 000

19

1.

2.

3.

4.
5.

5.0

5.1

FINANCIAL STATEMENT

BUDGET HEADING: not applicable: concerns the EDF

DATE: 8 May 2003
CREDITS:
Not applicable

TITLE: Council Decision fixing the financial contributions to be paid by the Member States to the
European Development Fund (second instalment for 2003)
LEGAL BASIS: Financial Regulation of 27 March 2003 applicable to the 9th European Development
Fund
AIMS OF MEASURE: Call for the second instalment of the Member States' contributions for 2003
FINANCIAL IMPLICATIONS

PERIOD OF
12 MONTHS

CURRENT
FINANCIAL
YEAR
[n]
(EUR million)

FOLLOWING
FINANCIAL
YEAR
[n+1]
(EUR million)

EXPENDITURE
- CHARGED TO THE EC BUDGET
- (REFUNDS/INTERVENTION)
- NATIONAL BUDGETS
- OTHER SECTORS
REVENUE
- OWN RESOURCES OF THE EC
- (LEVIES/CUSTOMS DUTIES)
- NATIONAL

(EUR million)

not applicable

not applicable

5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED REVENUE
5.2 METHOD OF CALCULATION:

[n+2]

[n+3]

[n+4]

[n+5]

6.0

6.1

CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN
THE RELEVANT CHAPTER OF THE CURRENT BUDGET?
CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS
OF THE CURRENT BUDGET?
IS A SUPPLEMENTARY BUDGET NECESSARY?

6.2
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?
OBSERVATIONS:

YES/NO

YES/NO
YES/NO
YES/NO

20