Communication from the Commission EUROPEAN DEVELOPMENT FUND (EDF) Estimate of commitments and payments and of contributions to be paid by the Member States for 2006 and 2007, and Forecast of commitments and payments for 2008 to 2011
Date: 2006-10-18
Institutions: European Commission
Subjects: European Development Fund, European Investment Bank, budget estimate, financial management, financial year, inclusion in the budget

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 18.10.2006 
COM(2006) 612 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 2006 and 2007, and 

Forecast of commitments and payments for 2008 to 2011 

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INTRODUCTION 

The  Commission  draws  up  this  communication  to  the  Council  each  year  in 
accordance with Article 8 of the Financial Regulation applicable to the 9th European 
Development Fund (EDF)1. Its purpose is to provide an estimate of commitments and 
payments  for  the  current  financial  year  (2006)  and  the  following  financial  year 
(2007)  and  set  out  the  schedule  of  calls  for  contributions,  taking  into  account  the 
forecasts of the European Investment Bank (EIB). As provided for in Article 8 of the 
Financial  Regulation,  the  communication  also  gives  estimates  of  commitments  and 
payments for each of the following four years (2008 to 2011).  

Since  the  entry  into  force  of  the  9th  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),  while  contributions  for  the  old  instruments 
managed  by  the  EIB  (risk  capital  and  interest-rate  subsidies)  still  go  through  the 
Commission.  This  communication  therefore  makes  a  clear  distinction  between  EIB 
payments under the 9th EDF, and Commission payments (including those for the old 
instruments managed by the EIB). 

In  line  with  the  joint  statement  made  by  the  Council  and  Commission  when  the 
Financial Regulation applicable to the 9th EDF was adopted, this document consists 
mainly of tables. 

The  graph  below  shows  an  overview  of  the  trend  in  commitments  and  payments, 
made in the past and expected in the near future (Commission2 and EIB). It clearly 
indicates the upwards structural trend in payments since 2000. 

5.000

4.000

€
m

3.000

2.000

1.000

0

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

332
118

1.950
352

2.380
807

1.363
1.265

953
1.257

1.433
1.191

2.236
1.984

1.843
1.443

2.689
1.860

1.874
1.758

1.538
1.509

784
1.382

2.606
1.595

2.958
1.352

4.007
1.640

1.927
1.779

2.125
1.922

4.107
2.349

2.972
2.558

4.020
2.709

3.976
3.040

3.835
3.200

- - Commitments  ― Payments 

1 
2 

OJ L 83, 1.4.2003, p. 1. 
The commitments and payments for the Commission are “gross” figures, i.e. they do not take account 
of decommitments and recoveries. 

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1. 

COMMITMENTS AND PAYMENTS ESTIMATED FOR 2006 AND 2007 

The  Commission  and  the  EIB  have  updated  their  forecasts  of  commitments  and 
payments  for  2006  and  2007  for  each  of  the  ACP3  countries  and  OCTs4.  For  the 
Commission,  these  figures  are  the  result  of  a  detailed  estimate,  project  by  project. 
Following its experience on the Investment Facility, the EIB bases its estimates on a 
projection of the rate of commitments and payments observed in the past. 

The payment estimates in particular have been compiled with great care with the aim 
of helping the Member States to earmark amounts that are as accurate as possible in 
their national budgets while ensuring that sufficient financial resources are available 
for the EDF to avoid liquidity problems.  

For the Commission, the overall estimates for 2006 and 2007, presented in June5, are 
totalling  EUR 3 400  million  and  payments 
confirmed.  With  commitments 
EUR 2 750 million, the Commission believes it will be able to achieve its objectives 
for  2006.  The  level  of  commitments  for  2007  (EUR 3 450  million)  confirms  the 
Commission’s wish to use up all the funds made available by the 9th EDF (including 
the balances remaining from previous EDFs). With EUR 2 850 million in payments 
in 2007, the upward trend observed since 2000 is confirmed. 

The EIB revised its estimates for 2006 very slightly downwards. The new figures for 
commitments and payments are EUR 576 million and EUR 290 million respectively. 
For  2007,  commitments  are  put  at  EUR 385  million.  The  downward  adjustment  is 
greater for payments, which are now estimated at EUR 350 million. 

The  table  in  Annex  1  shows  the  new  estimates  for  commitments  and  payments  for 
2006 and 2007, and compares them to the figures presented in the communication of 
June 2006. 

In accordance with Article 8 of the Financial Regulation applicable to the 9th EDF, 
the estimates will be revised in the June 2007 communication.  

2. 

CALLS FOR CONTRIBUTIONS IN 2006 AND 2007 

Annex 2 gives an overview of the financial situation for 2006 and 2007 and shows 
the total contributions payable into the EDF by the Member States. 

It  should  be  recalled  that  two  types  of  measures  do  not  require  additional  financial 
resources from the Member States. The related payments are therefore not included 
in this table. These are the Stabex instrument, for which Member States have already 
made  the  necessary  payments  in  the  past,  and  measures  financed  from  a  special 
account to accompany the elections in the Democratic Republic of Congo.  

3 
4 
5 

African, Caribbean and Pacific States. 
Overseas Countries and Territories. 
Communication  from  the  Commission  to  the  Council:  Financial  information  on  the  European 
Development Funds (COM(2006) 317 final of 19 June 2006). 

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Because the estimates for payments for 2006 have changed only slightly since June, 
the  EIB  and  the  Commission  maintain  their  request  for  the  third  tranche  of 
contributions  at  EUR 20  million  and  EUR 200  million  respectively.  Total 
contributions  requested  by  the  Commission  and  the  EIB  for  the  whole  year  are 
EUR 2 690 million,  well  within  the  amount  indicated  by  the  Council  in  December 
20056 (EUR 2 830 million). Annex 3 gives a breakdown of contributions by Member 
State.  

For 2007, the Commission calls on the Member States to pay a total of EUR 2 640 
for  the  whole  year.  It  proposes  an  initial  tranche  of  EUR 1 500  million  (compared 
with EUR 1 400 million in 2005). This is in line with the Commission objective to 
spread  payments  across  the  year  more  effectively  and  therefore  decrease  the 
payments  made  towards  the  end  of  the  year.  In  line  with  its  forecast  downwards 
revision in payments, the EIB estimates a need for contributions totalling EUR 330 
million, with EUR 130 million payable for the first tranche. 

Current estimates from the Commission and the EIB for the second tranche of 2007 
contributions  are  for  EUR  850  million  and  EUR  160  million  respectively.  The  last 
tranche should therefore require EUR 290 million and EUR 40 million respectively. 
In accordance with the 9th EDF Financial Regulation, the second and third tranches 
may be adjusted upwards or downwards in line with real requirements at the time of 
the call for contributions. 

3. 

THE FUTURE (2008-2011) 

It should be remembered that the margin of error for medium-term estimates is high. 
This  is  particularly  true  at  the  moment.  In  2008,  the  10th  EDF  will  come  into 
operation.  At  this  stage,  the  programming  of  the  10th  EDF  has  not  even  been 
established  yet.  The  following  figures  should  therefore  be  interpreted  with  a  great 
deal of caution. 

6 

Council Decision of 21 December 2005 laying down, for the financial year 2006, the schedule of calls 
for contributions from the Member States to the 9th European Development Fund. 

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Forecast EDF commitments and payments 
2008-2011 

Commitments 

Commission 
EIB 
Total 
Payments 

Commission 
EIB 
Total 

2008 

2900 
587 
3487 

3200 
430 
3630 

2009 

3750 
450 
4200 

3000 
560 
3560 

€ million 

2011 

3750 
450 
4200 

3400 
410 
3810 

2010 

3750 
450 
4200 

3200 
460 
3660 

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ANNEX 1 

Commitments/Payments Estimated for 2006 and 2007 (€ million) 

2006 

Communication 
June 2006 

Update 

2007 

Communication 
June 2006 

Update 

COMMITMENTS 

Peace Facility 
Water Facility 
Other measures from the conditional billion 
Stabex (interest on secured accounts) 
Other 

Total for the Commission 
Investment Facility 
Interest-rate subsidies 

Total for EIB instruments (9th EDF) 
TOTAL 

PAYMENTS 

Peace Facility 
Water Facility 
Other measures from the conditional billion 
Risk capital (+ interest-rate subsidies) 
Debt relief (HIPC) 
Other 
Subtotal 
Stabex 
DR Congo 

Total for the Commission 
Investment Facility 
Interest-rate subsidies 

Total for EIB instruments (9th EDF) 
TOTAL 

EN 

50 
185 
326 
10 
2.829 
3.400 
526 
60 
586 
3.986 

124 
44 
60 
82 
60 

2.297 
2.667 
83 
0 
2.750 
270 
45 
315 
3.065 

6 

50 
289 
326 
10 
2.725 
3.400 
526 
50 
576 
3.976 

124 
69 
60 
75 
60 

2.262 
2.650 
100 
0 
2.750 
250 
40 
290 
3.040 

0 
190 
174 
10 
3.076 
3.450 
295 
100 
395 
3.845 

12 
89 
188 
71 
100 

2.300 
2.760 
90 
0 
2.850 
330 
80 
410 
3.260 

0 
86 
174 
10 
3.180 
3.450 
295 
90 
385 
3.835 

12 
107 
183 
71 
100 

2.234 
2.707 
127 
16 
2.850 
300 
50 
350 
3.200 

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Financial situation estimated for 2006 and 2007 – not including Stabex and the DR Congo special account(*) (€ million) 

ANNEX 2 

Balance at 01.01.06 
2005 contributions paid in 2006 
2006 contributions, of which: 

6
0
0
2

7
0
0
2

First tranche 
Second tranche 
Third tranche 
Interest and other revenue 
Recoveries 
Payments 
Balance at 31.12.06 

2007 contributions 

First tranche 
Second tranche 
Third tranche 
Interest and other revenue 
Recoveries 
Payments 

Balance at 31.12.07 

Communication of June 2006 

Commission 

137** 

14 
2.510 
1.400 
910 
200 
10 
60 
-2.667 

64 

2.690 

10 
60 

-2.760 

64 

EIB 
9th EDF 
141 

180 
60 
100 
20 

-315 

6 

410 

-410 

6 

TOTAL 

Commission 

278 

14 
2.690 
1.460 
1.010 
220 
10 
60 
-2.982 

70 

3.100 

10 
60 

-3.170 

70 

138** 

14 
2.510 
1.400 
910 
200 
12 
50 
-2.650 

74 

2.640 
1.500 
850 
290 
12 
60 

-2.707 

79 

Update 
EIB 
9th EDF 
142 

180 
60 
100 
20 

-290 

32 

330 
130 
160 
40 

-350 

12 

TOTAL 

280 

14 
2.690 
1.460 
1.010 
220 
12 
50 
-2.940 

106 

2.970 
1.630 
1.010 
330 
12 
60 

-3.057 

91 

* Funds available for operations 

** Does not include EUR 1.4 million from 2006 contributions 

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ANNEX 3 

2006 EDF Contributions by Member State (in euros) 

Member State 

SCALE 

1st tranche 

2nd tranche 

3rd tranche 

paid to 

EIB 

paid to 

Commission 

paid to 

EIB 

% 

paid to 

payable to 

payable to 

Commission 

EIB 

Commission 

tranches 

TOTAL 

for all 

GERMANY 

BELGIUM 

DENMARK 

SPAIN 

FRANCE 

GREECE 

IRELAND 

ITALY 

LUXEMBOURG 

NETHERLANDS 

PORTUGAL 
UNITED 
KINGDOM 

AUSTRIA 

FINLAND 

SWEDEN 
TOTAL 

23,36 

14.016.000

327.040.000

23.360.000

212.576.000 

4.672.000

46.720.000

628.384.000

3,92 

2,14 

5,84 

2.352.000

54.880.000

3.920.000

35.672.000 

784.000

7.840.000

105.448.000

1.284.000

29.960.000

2.140.000

19.474.000 

428.000

4.280.000

57.566.000

3.504.000

81.760.000

5.840.000

53.144.000 

1.168.000

11.680.000

157.096.000

24,30 

14.580.000

340.200.000

24.300.000

221.130.000 

4.860.000

48.600.000

653.670.000

1,25 

0,62 

750.000

372.000

17.500.000

1.250.000

11.375.000 

250.000

2.500.000

33.625.000

8.680.000

620.000

5.642.000 

124.000

1.240.000

16.678.000

12,54 

7.524.000

175.560.000

12.540.000

114.114.000 

2.508.000

25.080.000

337.326.000

0,29 

5,22 

0,97 

174.000

4.060.000

290.000

2.639.000 

58.000

580.000

7.801.000

3.132.000

73.080.000

5.220.000

47.502.000 

1.044.000

10.440.000

140.418.000

582.000

13.580.000

970.000

8.827.000 

194.000

1.940.000

26.093.000

12,69 

7.614.000

177.660.000

12.690.000

115.479.000 

2.538.000

25.380.000

341.361.000

2,65 

1,48 

2,73 

1.590.000

37.100.000

2.650.000

24.115.000 

530.000

5.300.000

71.285.000

888.000

20.720.000

1.480.000

13.468.000 

296.000

2.960.000

39.812.000

1.638.000

38.220.000

2.730.000

24.843.000 

546.000

5.460.000

73.437.000

100,00 

60.000.000

1.400.000.000

100.000.000

910.000.000 

20.000.000

200.000.000

2.690.000.000

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ANNEX 4 

2007 EDF Contributions by Member State (in euros) 

Member State 

SCALE 

1st tranche 

2nd tranche 

3rd tranche 

payable to 
EIB 

payable to 
Commission 

payable to 
EIB 

payable to 
Commission 

payable to 
EIB 

payable to 
Commission 

% 

TOTAL 
for all 
tranches 

GERMANY 
BELGIUM 
DENMARK 
SPAIN 
FRANCE 
GREECE 
IRELAND 
ITALY 
LUXEMBOURG 
NETHERLANDS 
PORTUGAL 
UNITED 
KINGDOM 
AUSTRIA 
FINLAND 
SWEDEN 
TOTAL 

23,36 

30.368.000

350.400.000

37.376.000

198.560.000 

9.344.000

67.744.000

693.792.000

3,92 

2,14 

5,84 

5.096.000

2.782.000

7.592.000

58.800.000

6.272.000

33.320.000 

1.568.000

11.368.000

116.424.000

32.100.000

3.424.000

18.190.000 

856.000

6.206.000

63.558.000

87.600.000

9.344.000

49.640.000 

2.336.000

16.936.000

173.448.000

24,30 

31.590.000

364.500.000

38.880.000

206.550.000 

9.720.000

70.470.000

721.710.000

1,25 

0,62 

1.625.000

18.750.000

2.000.000

10.625.000 

806.000

9.300.000

992.000

5.270.000 

500.000

248.000

3.625.000

37.125.000

1.798.000

18.414.000

12,54 

16.302.000

188.100.000

20.064.000

106.590.000 

5.016.000

36.366.000

372.438.000

0,29 

5,22 

0,97 

377.000

4.350.000

464.000

2.465.000 

116.000

841.000

8.613.000

6.786.000

1.261.000

78.300.000

8.352.000

44.370.000 

2.088.000

15.138.000

155.034.000

14.550.000

1.552.000

8.245.000 

388.000

2.813.000

28.809.000

12,69 

16.497.000

190.350.000

20.304.000

107.865.000 

5.076.000

36.801.000

376.893.000

2,65 

1,48 

2,73 

3.445.000

1.924.000

3.549.000

39.750.000

4.240.000

22.525.000 

1.060.000

7.685.000

78.705.000

22.200.000

2.368.000

12.580.000 

592.000

4.292.000

43.956.000

40.950.000

4.368.000

23.205.000 

1.092.000

7.917.000

81.081.000

100,00 

130.000.000

1.500.000.000

160.000.000

850.000.000 

40.000.000

290.000.000

2.970.000.000

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