Communication from the Commission to the Council and the European Parliament - Financial information on the European Development Funds
Date: 2008-06-13
Institutions: European Commission
Subjects: European Development Fund, Member States' contribution, commitment of expenditure, financial management, financial regulation, financial situation, financial year, payment

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 13.6.2008 
COM(2008) 354 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE 
EUROPEAN PARLIAMENT 

Financial Information on the European Development Funds 

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COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE 
EUROPEAN PARLIAMENT 

Financial Information on the European Development Funds 

FOREWORD 

This  document  is  to  be  annexed  to  the  draft  budget  for  2009.  in  accordance  with  the  1979 
agreements on budgetary procedure. 

Article 157 of the Financial Regulation of 18 February 2008 applicable to the 10th European 
Development  Fund1.  hereinafter  referred  to  as  "the  EDF".  effectively  stipulates  that  the 
current  procedure  for  calls  for  contributions.  as  laid  down  in  the  Financial  Regulation 
applicable to the 9th EDF. remains in force for the contributions to be paid by the Member 
States  in  2008.  Article  8(3)  of  the  Financial  Regulation  applicable  to  the  9th  EDF2  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 payments. 

As in previous years. this document sets out: 

–  implementation of the EDFs (7th to 9th) at 31 December 2007; 

–  financial implementation forecasts for the current year; 

–  expenditure forecasts for 2009. 

The Member States contribute funds directly to the European Investment Bank (EIB) for the 
instruments  which  it  manages  under  the  9th  and  10th  EDFs  (the  Investment  Facility  and 
interest-rate  subsidies).  Contributions  for  other  instruments.  including  contributions  for  the 
old  instruments  managed  by  the  EIB  (risk  capital  and  interest-rate  subsidies).  go  to  the 
Commission. 
Unless otherwise indicated. all the commitments and payments listed in this Communication 
are gross amounts. i.e. no decommitments or recoveries have been deducted. This approach is 
in line with that used for the general budget of the EU.  

1 
2 

OJ L 78, 19.03.2008, p. 1. 
OJ L 83, 1.4.2003, p. 1. 

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INTRODUCTION 

The Commission and the EIB have updated their commitment and payment forecasts 
for  2008  and  2009  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 assess as accurately as possible the amounts they need to earmark 
in  their  national  budgets  while  ensuring  that  sufficient  financial  resources  are 
available for the EDF to avoid liquidity problems. In accordance with Article 8 of the 
Financial  Regulation  applicable  to  the  9th  EDF  and  Article 7  of  the  Internal 
Agreement  on  the  10th  EDF5.  these  forecasts  will  be  adjusted  in  the  October  2008 
Communication.  

The graph below shows the general trend in commitments and payments. including 
projections for 2008 (Commission and EIB). It clearly shows the structural upward 
trend of payments since 2000. 

5.000

4.000

3.000

2.000

 €

m

1.000

0

1986

332

118

1987

1.950

352

1988

2.380

807

1989

1.363

1.265

1990

953

1.257

1991

1.433

1.191

1992

2.236

1.984

1993

1.843

1.443

1994

2.689

1.860

1995

1.874

1.758

1996

1.538

1.509

1997

784

1.382

1998

2.606

1.595

1999

2.958

1.352

2000

4.007

1.640

2001

1.927

1.779

2002

2.125

1.922

2003

4.135

2.349

2004

2.972

2.558

2005

4.020

2.704

2006

4.037

3.062

2007

3.915

3.252

2008

3.529

3.550

- - Commitments; ― Payments 

3 
4 
5 

African, Caribbean and Pacific States. 
Overseas countries and territories. 
OJ L 247, 09.09.2006, p. 32. 

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1. 

IMPLEMENTATION OF THE EUROPEAN DEVELOPMENT FUNDS AT 31 DECEMBER 2007 

1.1. 

Funds available at 31 December 2007 

Annex 1 gives an overview of the funds available to the Commission and EIB under 
the EDFs (7th to 9th). commitments and payments at the end of 2007. It shows clearly 
that the Commission has achieved its goal of committing all funds available under the 
9th EDF and sums transferred from previous EDFs. In line with the rules. several tens 
of millions of euro remain to be committed between 1 January 2008 and the entry into 
force of the 10th EDF. 

Unlike the figures in the rest of this document. the figures given above and in Annex 1 
are  “net”  figures.  Decommitments  have  therefore  been  deducted  from  commitments 
and  recoveries  from  payments.  This  is  necessary  to  determine  the  true  amount  of 
available funds. 

1.2. 

Implementation  of  the  EDFs  in  2007  (commitments.  payments  and  financial 
situation) 

Annex 2 gives a breakdown of commitments and payments in 2007 by instrument and 
compares them with the 2006 figures. 

Annexes 3  and  4  show  actual  implementation  in  2007  compared  with  the  forecasts 
made  in  October  20076.  The  Commission  was  unable  to  make  all  the  payments 
forecast owing to insufficient financial contributions by the Member States. However. 
at EUR 2 920 million payments were once again higher than ever before.  

Annex 5 shows the financial situation and the projections made in October 2007. The 
table  does  not  include  payments  made  under  Stabex  because  these  were  made  from 
separate accounts to which Member States had already contributed.  

The  cash  balance  available  to  the  Commission  at  the  end  of  2007  was  only 
EUR 57 million7. This was the lowest ever cash balance. The EIB's cash balance was 
EUR 77 million. compared with a forecast of EUR 6 million. 

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COM(2007) 599 final of 5 October 2007. 
Excluding EUR 211 million in 2008 contributions paid in at the end of December 2007. 

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2. 

FINANCIAL IMPLEMENTATION FORECASTS FOR 2008 AND 2009 

The new forecasts are set out in Annexes 3 to 6.  

The new forecasts for 2008 put the Commission's needs at EUR 3 000 million and the 
EIB's  at  EUR 305 million.  These  figures  are  based  on  the  assumption  that  the  10th 
EDF  comes  on  stream  in  early  summer  2008.  The  sums  decided  by  the  Council  in 
December 20078  for  2008  are  EUR 2  857  million  for  the  Commission  and 
EUR 343 million for the EIB.  

Contributions  for  2009  are  forecast  at  EUR 3 100 million  for  the  Commission  and 
EUR 370 million  for  the  EIB.  It  should  be  stressed  that  these  figures  are  just  a 
preliminary forecast and must be treated with caution. The Commission and the EIB 
will  make  more  reliable  forecasts  after  the  summer.  They  will  be  presented  in  the 
October 2008 Communication. 

The Commission urges the Council to make available all the contributions necessary 
to guarantee proper implementation of the EDF in 2008 and 2009. 

8 

Council Decision of 20 December 2007 laying down, for the financial year 2008, the schedule of calls for 
contributions from the Member States to the 9th EDF. 

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ANNEX 1: Consolidated situation of the EDFs (7th to 9th) for the ACP countries and 
OCTs  
at 31 December 2007 (EUR million) 

Allocations 

Commitments  Pay

COMMISSION 
7th and 8th EDFs 
National and Local programmes 
Interest-rate subsidies 
Risk capital 
Structural adjustment facility 
Emergency Assistance 
Aid to refugees 
Stabex 
Mining products 
Debt relief 
Cost of implementation 
Unexpended balances 5th EDF 

Subtotal 

9th EDF national and interim measures 
Envelope A 
Envelope B 
Regional allocation 
Intra-ACP allocation 
CDE9. CTA10 and JPA11 
Studies and TA12 for OCTs 
Cost of implementation 
DRC special assistance 
Miscellaneous revenue 
Voluntary contributions to the Peace Facility 
Unexpended balances 6th EDF  

Subtotal 

Total for the Commission 
EIB (9th EDF) 
Interest-rate subsidies 
Investment Facility 
Total for the EIB 
EDF TOTAL 

10 659 
298 
1 921 
2 647 
542 
195 
2 423 
547 
1 100  
37 
318 
20 687 

10 213 
1 570 
979 
3 314 
176 
2 
125 
109 
89 
39 
26 
16 642 

37 329 

188 
2 057 
2245 

39 574 

10 659
298
1 921 
2 647
542
195
2 423
547
1 100
37
318
20 687

10 195
1 570
979
3 312
176
2
125
108
60
39
26
16 592

37 279

113
1 967
2 080

39 359

The figures in this table are net figures. i.e. decommitments have been deducted from 
commitments and recoveries from payments.  

9 
10 
11 
12 

Centre for the Development of Enterprise. 
Technical Centre for Agricultural and Rural Cooperation. 
Joint Parliamentary Assembly. 
Technical assistance. 

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ANNEX 2 

Breakdown of expenditure by instrument for the years 2006 and 2007 

2006 

commitments 

payments 

2007 
commitments  payments 

EUR million 

COMMISSION 
7th and 8th EDFs 
Indicative Programmes  
Interest-rate subsidies 
Emergency assistance 
Aid to refugees 
Risk capital 
Mining products 
Stabex 
Structural adjustment facility 
Unexpended balances 5th EDF 
Cost of implementation 
Sub-total 

9th EDF + transitional measures 
Envelope A 
Envelope B 
Regional projects 
Intra-ACP projects 
Cost of implementation  
DRC special assistance 
Voluntary contributions to the Peace 
Facility 
Unexpended balances 6th EDF 
Other 
Sub-total 

-
-
-
-
-
-
9.1
-
-
-
9.1

1 744.1
353.7
222.8
1 037.0
21.0
16.2

-

-
4.0
3 398.7

612.0
0.6
0.3
8.0
63.1
16.0
189.5
1.1
1.1
0.7
893.2

1 240.9
154.0
49.6
431.2
5.9
15.9

-

4.5
31.0
1 933.0

- 
- 
- 
- 
- 
- 
6.2 
- 
- 
- 
6.2 

388.3
1.5
0
1.8
57.8
23.4
98.4
0.1
0.4
0.8
572.3

1 981.1 
295.6 
251.9 
946.5 
48.6 
0.3 

1 641.7
217.2
135.8
234.8
38.2
0.2

39.2 

29.2

- 
67.0 
3 630.2 

6.7
43.4
2 347.2

Total for the Commission 

3 407.9

2 826.2

3 636.3 

2 919.5

EIB (9th EDF) 

Investment Facility + interest-rate 
subsidies 
EDF TOTAL 

628.8

236.0

279.0 

332.5

4 036.7

3 062.2

3 915.3 

3 252.0

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ANNEX 3: Commitments and payments made in 2007 and forecast for 2008 and 2009 

2007

2008

2009

October 2007 
Communication

Implemented

October 2007 
Communication(*)

Adjustment

October 2007 
C ommunication

Adjustme
nt

EUR million 

Regions

East Africa

W est Africa

C entral Africa

C aribbean

Pacific

Southern Africa

End-of-term review reserve

Subtotal

Other

Peace Facility

W ater Facility

H IPC debt relief

Other

Total Commission

Investment Facility

Interest-rate subsidies

Total EIB instruments

TOTAL

663

813

324

273

173

310

209

745

816

318

353

131

320

0

2.765

2.685

117

222

0

346

3.450

350

50

400

3.850

139

181

0

631

3.636

262

17

279

3.915

529

1096

207

99

30

730

2692

300

0

0

36

pm

140

0

140

pm

3.029

3.750

3.750

450

50

500

3.529

450

50

500

4.250

500

4.250

* In the October 2007 Communication, the amounts presented for 2008 did not include reserves for the 10th EDF.  B y way of 
information, the Commission  suggested that entry into force on 1 January 2008 would be reflected by a volume of commitments 
estimated at EUR 2 900 million for the Commission and a further EUR  360 million for the EIB. 

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ANNEX 4: Commitments and payments made in 2007 and forecast for 2008 and 2009 

EUR million 

Regions

East Africa

W est Africa

Central Africa

Caribbean

Pacific

Southern Africa

Subtital

Other

Peace Facility

W ater Facility

Risk capital (*) 

HIPC debt relief

Infrastructure Trust Fund

Other

SUBTOTAL

Stabex

Total Commission

Investment Facility

Interest-rate subsidies

Total for EIB instruments

TOTAL

2007

October 2007 
Communication

Implemented 
(**)

2008

October 2007 
Communication 
(***)

2009

Adjustment October 2007 
Communication

Adjustment

760

867

280

244

72

348

707

785

261

246

58

335

551

804

344

219

66

333

578

858

373

256

76

354

2571

2392

2316

2493

92

64

62

0

141

2930

75

3005

350

21

371

3376

84

57

59

0

229

2821

98

2920

331

1

332

3252

106

149

62

180

0

135

2948

32

2980

400

20

420

3400

45

99

77

180

40

172

3106

14

3120

380

50

430

3550

3168

32

3200

400

50

450

3650

3075

430

3505

Gross payments (minus recoveries)

* including interest-rate subsidies under previous ED Fs
** T he Commission was unable to make all the payments forecast owing to insufficient financial contributions by the 
Member States.  

*** In the October 2007 Communication, the amounts presented for 2008 did not include reserves for the 10th EDF.  By way 
of information, the Commission suggested that entry into force on 1 January 2008 would result in additional payments 
estimated at EUR 300 million for the Commission and EUR 25 million for the EIB. 

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ANNEX 5 – Financial Situation in 2007 and forecast for 2008 and 2009 – excluding 
Stabex* 

(EUR million) 

Balance at 31.12.2006
2007 contributions, of which

1st tranche
2nd tranche 
3rd tranche

Voluntary contributions to Peace 
Reflows
Recoveries, interest and other.
Total payments
Stabex payments (already financed)
Balance at 31.12.2007
2008 contributions, of which

1st tranche
2nd tranche 
3rd tranche

Reflows
Recoveries, interest and other.
Total payments
Stabex payments (already financed)
Balance at 31.12.2008
2009 contributions, of which
Reflows
Recoveries, interest and other.
Total payments
Stabex payments (already financed)
Balance at 31.12.2009

7
0
0
2

8
0
0
2

9
0
0
2

Commission

131 **

2775
1500
950
325
37

75
-3005
75
88
2865
1500
1000
365

75
-2980
32
80

EIB TOTAL
193
3000
1570
1085
345

62
225
70
135
20

90

-371

6
360
170
145
45
60

-420

6

90
75
-3376
75
94
3225
1670
1145
410
60
75
-3400
32
86

-3075

-430

-3505

Commission

131 **

2640
1500
950
190
39

68
-2920
98
57 **

3000
1635
1000
365

75
-3120
14
26
3100

75
-3200
32
33

EIB
62
225
70
135
20

122

-332

77
305
170
105
30
90

-430

42
370
80

-450

42

TOTAL
193
2865
1570
1085
210
39
122
68
-3252
98
134
3305
1805
1105
395
90
75
-3550
14
68
3470
80
75
-3650
32
75

 In the October 2007 Communication, the amounts presented for 2008 did not include reserves for the 10th 
EDF.  By way of information, the Commission suggested that entry into force on 1 January 2008 would 
result in additional needs for contributions estimated at EUR 300 million for the Commission and EUR 25 
million for the EIB.

Nor did the Commission's needs for 2008 take account of a carryover from 2007 to 2008.

*amounts available for operations 

** minus contributions paid in advance

*** considered by the October 2007 Communication as being financed from a separate account 

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COUNTRY 

SCALE 

1st tranche 

2nd tranche 

3rd tranche 

TOTAL  

ANNEX 6 – Contributions to the EDF for 2008 (EUR) 

% 

paid to 
EIB 

paid to 

payable to  

payable to  

payable to  

payable to  

for all 

Commission 

EIB 

Commission 

EIB 

Commission 

tranches 

GERMANY 

23.36 

39 712 000 

382 512 000 

24 528 000 

233 600 000 

3.92 

2.14 

5.84 

6 664 000 

3 638 000 

9 928 000 

63 764 000 

35 213 000 

95 628 000 

4 116 000 

2 247 000 

6 132 000 

39 200 000 

21 400 000 

58 400 000 

24.30 

41 310 000 

397 185 000 

25 515 000 

243 000 000 

1.25 

0.62 

2 125 000 

1 054 000 

19 937 500 

10 529 000 

 1 312 500 

12 500 000 

651 000 

6 200 000 

7 008 000 

1 176 000 

642 000 

1 752 000 

7 290 000 

375 000 

186 000 

85 264 000 

772 624 000 

14 308 000 

129 228 000 

7 811 000 

70 951 000 

21 316 000 

 193 156 000 

88 695 000 

802 995 000 

4 562 500 

2 263 000 

40 812 500 

20 883 000 

BELGIUM 

DENMARK 

SPAIN 

FRANCE 

GREECE 

IRELAND 

ITALY 

12.54 

21 318 000 

204 893 000 

13 167 000 

125 400 000 

3 762 000 

45 771 000 

414 311 000 

LUXEMBOURG 

NETHERLANDS 

PORTUGAL 

0.29 

5.22 

0.97 

493 000 

8 874 000 

1 649 000 

4 505 500 

85 099 000 

16 311 500 

304 500 

5 481 000 

1 018 500 

2 900 000 

52 200 000 

9 700 000 

87 000 

1 058 500 

9 348 500 

1 566 000 

 19 053 000 

172 273 000 

291 000 

3 540 500 

32 510 500 

UNITED KINGDOM 12.69 

21 573 000 

208 085 500 

13 324 500 

126 900 000 

3 807 000 

46 318 500 

420 008 500 

AUSTRIA 

FINLAND 

SWEDEN 

TOTAL 

2.65 

1.48 

2.73 

 4 505 000 

2 516 000 

4 641 000 

43 067 500 

24 166 000 

44 103 500 

2 782 500 

1 554 000 

2 866 500 

26 500 000 

14 800 000 

27 300 000 

795 000 

444 000 

819 000 

9 672 500 

5 402 000 

9 964 500 

87 322 500 

48 882 000 

89 694 500 

100.00 

170 000 000 

1 635 000 000 

105 000 000 

1 000 000 000 

30 000 000 

365 000 000 

3 305 000 000 

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