Communication from the Commission European Development Fund (EDF) - Estimate of commitments and payments and of contributions to be paid by the Member States for 2007 and 2008, and Forecast of commitments and payments for 2009 to 2012
Date: 2007-10-05
Institutions: European Commission
Subjects: European Development Fund, European Investment Bank, Member States' contribution, budget estimate, financial management, financial situation, financial year, inclusion in the budget

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 5.10.2007 
COM(2007) 599 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 2007 and 2008, and 

Forecast of commitments and payments for 2009 to 2012 

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COMMUNICATION FROM THE COMMISSION 

EUROPEAN DEVELOPMENT FUND (EDF) 

Estimate of commitments and payments and of contributions to be paid by the Member 
States for 2007 and 2008, and 

Forecast of commitments and payments for 2009 to 2012 

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  (2007)  and  the  following  financial  year 
(2008)  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 (2009 to 2012).  

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  draws  a  clear  distinction  between  EIB 
payments under the 9th EDF and Commission payments (including payments under 
old instruments managed by the EIB). 

In line with the joint statement made by the Council and Commission when adopting 
the  Financial  Regulation  for  the  9th  EDF,  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 
(Commission2  and  EIB).  It  clearly  illustrates  the  upwards  structural  trend  in 
payments since 2000. 

1 
2 

OJ L 83, 1.4.2003, p. 1. 
The  commitments  and  payments  for  the  Commission  are  “gross”  figures,  i.e.  without  deducting 
decommitments and recoveries. 

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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
2.560

4.015
2.699

4.037
3.062

3.850
3.376

- - Commitments  ― Payments 

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1. 

COMMITMENTS AND PAYMENTS ESTIMATED FOR 2007 AND 2008 

The Commission and the EIB have updated their commitment and payment forecasts 
for 2007 and 2008 for each of the ACP3 countries and the OCTs4.  

The payment forecasts 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.  

Annexes 1 and 2 show the new estimates  for commitments  and  payments  for 2007 
and  2008,  and  compares  them  to  the  figures  presented  in  the  communication  of 
June 2007.  

the 
The  volume  of  commitments  for  2007  (EUR 3 450  million)  reflects 
Commission’s  pledge  to  use  up  all  the  funds  made  available  by  the  9th  EDF 
(including the balances remaining from previous EDFs). For 2008, it is very difficult 
for the Commission and the EIB to fix an amount, since the volume of commitments 
will depend on when the 10th EDF enters into force. For this reason, the Commission 
and  the  EIB  have  not  included  an  amount  in  this  document.  Further  information  is 
provided at the foot of Annex 1.  

The  Commission's  figures  for  payments  in  2007  are  slightly  lower  than  estimated. 
This  is  primarily  attributable  to  the  situation  in  the  Democratic  Republic  of  the 
Congo, which has delayed the payment of the second tranche of EUR 100 million for 
the  Highly  Indebted  Poor  Countries  initiative  (HIPC),  and  the  carrying-over  of 
certain  less  urgent  expenditure  in  order  to  reduce  the  third  tranche  of  2007 
contributions  as  much  as  possible.  As  with  commitments,  the  Commission  and  the 
EIB have yet to include figures for the 10th EDF for 2008 (see also the note at the 
foot of Annex 2). 

In accordance with Article 8 of the Financial Regulation applicable to the 9th EDF, 
the estimates will be revised in the June 2008 communication.  

2. 

CALLS FOR CONTRIBUTIONS IN 2007 AND 2008 

Annex 3 gives an overview of the financial situation for 2006 and 2007 and shows 
the annual 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 that part of the Peace Facility financed 
by voluntary contributions from the Member States.  

3 
4 

African, Caribbean and Pacific States. 
Overseas Countries and Territories. 

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For  2007,  the  Commission  proposes  that  the  Council  decide  a  third  tranche  of 
EUR 325 million. This would overrun the annual amount decided by the Council in 
December 2006  by  EUR 135 million  (as  opposed  to  the  EUR 295  million  overrun 
announced in the spring). Thanks to the considerable revenue from reflows and the 
revision  of  the  management  agreement  between  the  EIB  and  the  Commission  to 
enable these reflows to be used from the end of September 2007, contributions to the 
EIB-managed  Investment  Facility  for  2007  should  remain  within  the  envelope 
decided by the Council in December 2006.  

The  tranches  presented  for  the  Commission  and  the  EIB  for  2008  do  not  yet  take 
account of needs for the 10th EDF. As with commitments and payments, there is a 
risk that any estimate would be inaccurate. Moreover, entry into force at the start of 
2008 should not result in significant additional needs for the first 2008 tranche, the 
only one that has to be decided in the months ahead. It is only the second and third 
tranches  that  might  have  to  be  increased  to  take  account  of  the  impact  of  the 
10th EDF (see also the note at the foot of Annex 3). 

The  Commission  would  also  stress  the  following:  if  the  decision  taken  by  the 
Council on the third 2007 tranche falls short of the EUR 325 million requested, the 
first 2008 tranche will have to be increased accordingly. Otherwise the EDF will be 
forced  to  suspend  payments  in  June/July 2008  pending  the  payment  of  the  second 
tranche by the Member States. 

As stipulated by the 9th EDF Financial Regulation, the Commission and the EIB will 
produce  a  fresh  estimate  of  the  second  and  third  tranches  of  contributions  for  its 
communications of June and October 2008.  

3. 

THE FUTURE (2009-2012) 

It should be remembered that the margin of error for medium-term estimates is high. 
The following figures should therefore be interpreted with a great deal of caution. 

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Forecast EDF commitments and payments* 
2009-2012 

Commitments 

Commission 
EIB 
Total 
Payments 

Commission 
EIB 
Total 

* including the 10th EDF 

2009 

3750 
500 
4250 

3075 
430 
3505 

2010 

3750 
530 
4280 

3325 
470 
3795 

EUR million 

2012 

3750 
650 
4400 

3500 
510 
4010 

2011 

3750 
600 
4350 

3450 
500 
3950 

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ANNEX 1 - Commitments estimated for 2007 and 2008 (EUR million) 

2007

2008

June 2007 
communication

Revision

June 2007 
communication

Revision

Regions

East Africa

West Africa

Central Africa

Caribbean

Pacific

Southern Africa

End-of-term review reserve

Subtotal

Other

Peace Facility

Water Facility

HIPC debt relief

Other

703

770

293

239

150

351

400

663

813

324

273

173

310

209

2.906

2.765

45

172

0

327

117

222

0

346

Total for Commission

3.450

3.450

Investment Facility

Interest-rate subsidies

Total for EIB instruments (9th EDF)

350

77

427

350

50

400

TOTAL

3.877

3.850

pm

140

0

pm

pm

pm

140

0

140

pm

NB: To be on the safe side, the amounts for 2008 do not include provisions for the 10th EDF. Once the date 
of the 10th EDF's entry into force is known, the Commission and the EIB will present the relevant estimates. 
By way of information, the Commission can say that entry into force on 1 January 2008 would result in a 
volume of commitments currently estimated at EUR 2900 million for the Commission and a further EUR 360 
million for the EIB. To permit accurate comparison with the June 2007 estimate, the figures presented here 
exclude the 10th EDF. 

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ANNEX 2 - Payments estimated for 2007 and 2008 (EUR million) 

2007

June 2007 
communication

Revision

2008

June 2007 
communication

Revision

Regions

 East Africa

West Africa

Central Africa

Caribbean

Pacific

Southern Africa

Subtotal

Other

Peace Facility**

Water Facility

Risk capital* 

HIPC debt relief

Intra-ACP

SUBTOTAL

Stabex

Peace Facility financed by voluntary 
contributions

658

837

304

264

76

398

760

867

280

244

72

348

600

806

367

273

71

368

551

804

344

219

66

333

2.535

2.571

2.485

2.316

75

62

72

100

220

3.064

72

62

64

62

0

141

2.900

75

30

18

159

72

100

139

2.973

27

99

149

62

180

135

2.941

32

7

Total for Commission

3.136

3.005

3.000

2.980

Investment Facility

Interest-rate subsidies

Total EIB instruments (9th EDF) 

330

30

360

350

21

371

400

72

472

TOTAL

3.496

3.376

3.472

400

20

420

3400

NB: To be on the safe side, the amounts for 2008 do not include provisions for the 10th EDF. Once 
the date of the 10th EDF's entry into force is known, the Commission and the EIB will present the 
relevant estimates. By way of information, the Commission can say that entry into force on 1 January 
2008 would result in a volume of additional payments currently estimated at EUR 300 million for the 
Commission and EUR 25 million for the EIB. To permit accurate comparison with the June 2007 
estimate, the figures presented here exclude the 10th EDF. 

*  including interest-rate subsidies under previous EDFs
**excluding the 10th EDF

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Financial situation estimated for 2007 and 2008 – not including Stabex and the Peace Facility financed by voluntary contributions* 
(EUR million) 

ANNEX 3 

October 2006 communication

June 2007 communication

October 2007 revision

Commission

EIB 9th 
EDF

TOTAL

Commission

EIB 9th 
EDF

TOTAL

Commission

EIB 9th 
EDF

TOTAL

Balance at 31.12.2006

2007 contributions, of which:

First tranche
Second tranche 
Third tranche

Reflows
Recoveries, interest and other revenue
Payments

Balance at 31.12.2007

2008 contributions, of which:

First tranche
Second tranche 
Third tranche

Reflows

Recoveries, interest and other revenue

Payments

Balance at 31.12.2008

7
0
0
2

8
0
0
2

74

2.640

1.500
850
290

72
-2.707

79

77

225

70
110
45

-300

2

151

2.865

1.570
960
335

72
-3.007

81

131 **

2.935

1.500
1.050
385

75
-3.064

77

3.200

75

-3.273

79

62

305

70
190
45

-360

7

472

193

3.240

1.570
1.240
430

75
-3.424

84

3.672

75

-472

-3.745

7

86

131 **

2.775

1.500
950
325

75
-2.900

81

2.865

1.500
1.000
365

75

-2.941

80

62

225

70
135
20
90

-371

6

360

170
145
45
60

193

3.000

1.570
1.085
345
90
75
-3.271

87

3.225

1.670
1.145
410
60

75

-420

-3.361

6

86

NB: To be on the safe side, the amounts for 2008 do not include provisions for the 10th EDF. By way of information, the Commission can say that entry into force of the 10th EDF on 1 January 
2008 would call for additional contributions currently estimated at EUR 300 million for the Commission and EUR 25 million for the EIB. Once the date of the 10th EDF's entry into force is known, 
the Commission will present the relevant legislative proposals. However, even the entry into force at the start of the year will hardly affect payments in the first half of the year. Accordingly, only 
the second and third tranches would need to be adjusted.

* amounts available for operations 

** excluding EUR 3.49 million in 2007 contributions paid in 2006

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ANNEX 4 - 2007 EDF contributions by Member State (EUR) 

COUNTRY

SCALE

First tranche

Second tranche

Third tranche

TOTAL

paid to

the EIB

paid to the

Commission

paid to

the EIB

paid to the

Commission

paid to

the EIB

paid to the

of the

Commission

tranches

%

23,36

16.352.000

350.400.000

31.536.000

221.920.000

4.672.000

75.920.000

700.800.000

3,92

2,14

5,84

2.744.000

58.800.000

1.498.000

32.100.000

4.088.000

87.600.000

5.292.000

2.889.000

7.884.000

37.240.000

20.330.000

784.000

428.000

12.740.000

117.600.000

6.955.000

64.200.000

55.480.000

1.168.000

18.980.000

175.200.000

24,30

17.010.000

364.500.000

32.805.000

230.850.000

4.860.000

78.975.000

729.000.000

1,25

0,62

875.000

434.000

18.750.000

1.687.500

11.875.000

9.300.000

837.000

5.890.000

250.000

124.000

4.062.500

37.500.000

2.015.000

18.600.000

12,54

8.778.000

188.100.000

16.929.000

119.130.000

2.508.000

40.755.000

376.200.000

GERMANY

BELGIUM

DENMARK

SPAIN

FRANCE

GREECE

IRELAND

ITALY

LUXEMBOURG

NETHERLANDS

PORTUGAL

0,29

5,22

0,97

203.000

4.350.000

391.500

2.755.000

58.000

942.500

8.700.000

3.654.000

78.300.000

679.000

14.550.000

7.047.000

1.309.500

49.590.000

1.044.000

16.965.000

156.600.000

9.215.000

194.000

3.152.500

29.100.000

UNITED KINGDOM

12,69

8.883.000

190.350.000

17.131.500

120.555.000

2.538.000

41.242.500

380.700.000

AUSTRIA

FINLAND

SWEDEN

TOTAL

2,65

1,48

2,73

1.855.000

39.750.000

1.036.000

22.200.000

1.911.000

40.950.000

3.577.500

1.998.000

3.685.500

25.175.000

14.060.000

25.935.000

530.000

296.000

546.000

8.612.500

79.500.000

4.810.000

44.400.000

8.872.500

81.900.000

100,00

70.000.000 1.500.000.000

135.000.000

950.000.000

20.000.000

325.000.000 3.000.000.000

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ANNEX 5 - 2008 EDF Contributions by Member State (EUR) 

SCALE

First tranche

Second tranche

Third tranche

%

paid to

the EIB

paid to the

Commission*

paid to

the EIB

paid to the

Commission

paid to

the EIB

paid to the

Commission

tranches

23,36

39.712.000

350.976.000

33.872.000

233.600.000

10.512.000

85.264.000

753.936.000

3,92

2,14

5,84

6.664.000

58.472.000

3.638.000

32.324.000

9.928.000

87.744.000

5.684.000

3.103.000

8.468.000

39.200.000

1.764.000

14.308.000

126.092.000

21.400.000

963.000

7.811.000

69.239.000

58.400.000

2.628.000

21.316.000

188.484.000

24,30

41.310.000

364.380.000

35.235.000

243.000.000

10.935.000

88.695.000

783.555.000

1,25

0,62

2.125.000

18.250.000

1.812.500

12.500.000

1.054.000

9.692.000

899.000

6.200.000

562.500

279.000

4.562.500

39.812.500

2.263.000

20.387.000

12,54

21.318.000

187.964.000

18.183.000

125.400.000

5.643.000

45.771.000

404.279.000

TOTAL

of the

COUNTRY

GERMANY

BELGIUM

DENMARK

SPAIN

FRANCE

GREECE

IRELAND

ITALY

LUXEMBOURG

NETHERLANDS

PORTUGAL

0,29

5,22

0,97

493.000

4.114.000

420.500

2.900.000

130.500

1.058.500

9.116.500

8.874.000

78.052.000

1.649.000

15.002.000

7.569.000

1.406.500

52.200.000

2.349.000

19.053.000

168.097.000

9.700.000

436.500

3.540.500

31.734.500

UNITED KINGDOM

12,69

21.573.000

190.954.000

18.400.500

126.900.000

5.710.500

46.318.500

409.856.500

AUSTRIA

FINLAND

SWEDEN

TOTAL

2,65

1,48

2,73

4.505.000

39.490.000

2.516.000

22.168.000

4.641.000

40.418.000

3.842.500

2.146.000

3.958.500

26.500.000

1.192.500

9.672.500

85.202.500

14.800.000

666.000

5.402.000

47.698.000

27.300.000

1.228.500

9.964.500

87.510.500

100,00

170.000.000 1.500.000.000

145.000.000

1.000.000.000

45.000.000

365.000.000 3.225.000.000

* after adjustment to close 8th EDF envelope

NB: To be on the safe side, the amounts for 2008 do not include provisions for the 10th EDF. By way of information, the Commission can say that entry into force on 1 January 
2008 would call for additional contributions currently estimated at EUR 300 million for the Commission and EUR 25 million for the EIB. Once the date of the 10th EDF's entry into 
force is known, the Commission will present the relevant legislative proposals. However, even the entry into force at the start of the year will hardly affect payments in the first 
half of the year. Accordingly, only the second and third tranches would need to be adjusted.

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