Preliminary draft amending budget n° 5 to the general budget 2008 - General statement of revenue
Date: 2008-06-18
Institutions: Directorate-General for Budget, European Commission
Subjects: United Kingdom, amending budget, budget estimate, budgetary resources, general budget (EU), preliminary draft EC budget

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 18.6.2008 
COM(2008) 381 final 

PRELIMINARY DRAFT AMENDING BUDGET N° 5  
TO THE GENERAL BUDGET 2008 

GENERAL STATEMENT OF REVENUE 

(presented by the Commission) 

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   EN 

 
 
 
  
PRELIMINARY DRAFT AMENDING BUDGET N° 5  
TO THE GENERAL BUDGET 2008 

GENERAL STATEMENT OF REVENUE 

Having regard to: 

– 

– 

– 

the  Treaty  establishing  the  European  Community,  and  in  particular  Article 272 
thereof, 

the  Treaty  establishing  the  European  Atomic  Energy  Community,  and  in  particular 
Article 177 thereof, 

the  Council  Regulation  (EC,  Euratom)  No  1605/2002  of  25  June  2002  on  the 
Financial Regulation applicable to the general budget of the European Communities1, 
as  last  amended  by  Council  Regulation  (EC)  No  1525/20072,  and  in  particular 
Article 37 thereof, 

The European Commission hereby presents to the budgetary authority the Preliminary Draft 
Amending Budget No 5 to the 2008 budget. 

1 
2 

OJ L 248, 16.9.2002, p. 1. 
OJ L 343, 27.12.2007, p. 9. 

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TABLE OF CONTENTS 

1. 

2. 

3. 

Introduction .................................................................................................................. 4 

Revision of the forecast of TOR, VAT & GNI bases .................................................. 5 

2004 UK correction & 2007 UK correction................................................................. 7 

3.1. 

Calculation of the corrections ...................................................................................... 8 

3.1.1. 

2007 UK correction...................................................................................................... 9 

3.1.2. 

2004 UK correction...................................................................................................... 9 

3.2. 

Entry in the PDAB 5/2008 of the 1st update of the 2007 UK correction and of the  
definitive amount of the 2004 UK correction............................................................. 10 

3.2.1. 

2007 UK correction (chapter 15) ............................................................................... 10 

3.2.2. 

2004 UK correction (chapter 35) ............................................................................... 10 

CHANGES TO THE GENERAL STATEMENT OF REVENUE 

The changes to the general statement of revenue are forwarded separately via the SEI-BUD 
system. An English version of the changes to the general statement of revenue is attached for 
information as a budgetary annex. 

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1. 

INTRODUCTION 

The Preliminary Draft Amending Budget No 5 to the Budget for 2008 (PDAB 5/2008) covers 
the revision of the forecast of traditional own resources (TOR, i.e. customs duties, agricultural 
duties  and  sugar  levies),  VAT  and  GNI  bases  and  the  budgeting  of  the  relevant  UK 
corrections  as  well  as  their  financing,  resulting  in  a  change  in  the  distribution  between 
Member States of their own resources contributions to the EU budget. 

The following summary table shows the distribution of total own resources payments between 
Member States as budgeted in: 

– 

– 

– 

– 

– 

– 

3 
4 
5 
6 

the Budget 2008, 

the Amending Budget (AB) 1/20083 - modifies the 2008 budget in order to mobilise 
the EU Solidarity Fund for the floods that hit the United Kingdom in June and July 
2007, to modify the structure of the budget for the Research Executive Agency and 
the European Research Council Executive Agency, to modify the establishment plan 
of the European Agency for the Management of the Operational Cooperation at the 
External Borders, to create the budget item for Galileo Programme and budget article 
for Exceptional Crisis Expenditure, 

the Amending Budget (AB) 2/20084 - modifies the 2008 budget in order to include 
into the 2008 budget unused appropriations for commitments for the ERDF, EAFRD 
and EFF arising form delays in implementation of the first year of the multi-annual 
financial framework 2007-2013, to modify the establishment plans of the European 
Medicines  Agency  and  of  the  European  Maritime  Safety  Agency;  it  only  concerns 
commitment appropriations and does not change financing, 

the Amending Budget (AB) 3/20085 - modifies the 2008 budget in order to include 
the  budgeting  of  the  revenue  accruing  from  the  Microsoft  case  and  of  the  savings 
from lower pay and pension increase in 2007, to create budgetary structure for four 
Joint  Technology  Initiatives,  to  mobilise  EU  Solidarity  Fund  for  fires  in  Greece  in 
August  2007  and  floods  in  Slovenia  in  September  2007,  and  to  modify  the 
establishment  plans  of  the  European  Institute  for  Gender  Equality  and  European 
Economic and Social Committee,  

the  Amending  Budget  (AB) 4/20086  -  modifies  the  2008  budget  in  order  to  budget 
the surplus from the previous year of EUR 1 528.8 million, 

the present PDAB 5/2008. 

As adopted on 9.4.2008. 
As adopted on 22.5.2008. 
As adopted on 5.6.2008. 
As adopted on 5.6.2008. 

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amounts in euro 

Budget 2008 

AB 1/2008 

AB 3/2008 

AB 4/2008 

PDAB 5/2008 

(1) 

(2) 

(3) 

(4) 

(5) 

in % 

PDAB 5/2008 
vs. 
AB 4/2008 
(6) = (5) – (4) 

BE 

BG 

CZ 

DK 

DE 

EE 

IE 

EL 

ES 

FR 

IT 

CY 

LV 

LT 

LU 

HU 

MT 

NL 

AT 

PL 

PT 

RO 

SI 

SK 

FI 

SE 

UK 

EU 

4 670 799 937 

4 675 211 596 

4 656 317 714 

4 614 783 290 

4 856 220 627 

334 445 137 

334 835 419 

333 163 952 

329 489 566 

367 698 247 

1 321 866 315 

1 323 439 204 

1 316 702 971 

1 301 894 710 

1 383 575 486 

2 369 166 347 

2 372 252 849 

2 359 034 240 

2 329 975 768 

2 436 162 570 

4.16% 

0.31% 

1.18% 

2.08% 

+ 241 437 337 

+ 38 208 681 

+ 81 680 776 

+ 106 186 802 

23 473 578 458 

23 505 464 842 

23 368 904 529 

23 068 703 963 

23 265 286 873 

19.91% 

+ 196 582 910 

182 513 841 

182 727 368 

181 812 894 

179 802 607 

177 701 816 

1 758 207 506 

1 760 426 063 

1 750 924 612 

1 730 037 570 

1 664 290 689 

2 189 299 651 

2 192 106 358 

2 180 086 030 

2 153 661 742 

2 362 724 048 

11 003 073 520 

11 017 033 280 

10 957 247 597 

10 825 820 719 

10 754 761 835 

0.15% 

1.42% 

2.02% 

9.20% 

- 2 100 791 

- 65 746 881 

+ 209 062 306 

- 71 058 884 

18 686 816 894 

18 711 622 512 

18 605 387 106 

18 371 849 795 

18 785 484 519 

16.08% 

+ 413 634 724 

15 177 182 642 

15 197 443 443 

15 110 672 194 

14 919 922 940 

15 211 763 701 

13.02% 

+ 291 840 761 

179 848 446 

180 051 406 

222 784 810 

223 066 942 

302 137 161 

302 506 659 

309 711 928 

310 129 650 

991 943 975 

993 228 399 

179 182 187 

221 858 650 

300 924 204 

308 340 665 

987 727 577 

177 271 383 

188 969 703 

219 202 462 

230 522 807 

297 445 493 

325 971 362 

304 407 941 

283 748 353 

975 635 118 

977 145 493 

59 353 449 

59 422 174 

59 127 842 

58 480 812 

59 631 814 

6 654 552 673 

6 661 961 928 

6 630 230 196 

6 560 474 324 

6 698 750 007 

2 549 839 115 

2 553 369 273 

2 538 250 609 

2 505 015 247 

2 455 386 317 

3 191 434 827 

3 195 462 411 

3 178 213 413 

3 140 294 939 

3 445 945 465 

1 550 363 324 

1 552 426 051 

1 543 591 978 

1 524 172 036 

1 567 158 570 

1 350 381 019 

1 352 080 119 

1 344 803 355 

1 328 806 844 

1 304 012 581 

338 884 110 

339 316 335 

569 380 009 

570 107 481 

337 465 236 

566 991 925 

333 395 965 

406 271 269 

560 142 998 

601 838 084 

1 739 702 106 

1 742 061 294 

1 731 957 561 

1 709 746 523 

1 790 489 750 

3 195 781 885 

3 200 240 097 

3 181 146 840 

3 139 174 128 

3 164 003 777 

0.16% 

0.20% 

0.28% 

0.24% 

0.84% 

0.05% 

5.73% 

2.10% 

2.95% 

1.34% 

1.12% 

0.35% 

0.52% 

1.53% 

2.71% 

+ 11 698 320 

+ 11 320 345 

+ 28 525 869 

- 20 659 588 

+ 1 510 375 

+ 1 151 002 

+ 138 275 683 

- 49 628 930 

+ 305 650 526 

+ 42 986 534 

- 24 794 263 

+ 72 875 304 

+ 41 695 086 

+ 80 743 227 

+ 24 829 649 

14 548 709 115 

14 576 153 032 

14 458 618 540 

14 200 242 444 

12 094 335 564 

10.35% 

- 2 105 906 880 

118 921 758 200 

119 084 146 185 

118 388 684 617 

116 859 851 327 

116 859 851 327 

100% 

0 

2. 

REVISION OF THE FORECAST OF TOR, VAT & GNI BASES 

According  to  established  practice  the  Commission  proposes  to  revise  the  financing  of  the 
budget on the basis of more recent economic forecasts, adopted at a meeting of the Advisory 
Committee on Own Resources (ACOR). 

The  revision  concerns  the  forecast  of  TOR  (customs  duties,  agricultural  duties  and  sugar 
levies) to be paid to the budget in 2008 as well as the forecast of the 2008 VAT & GNI bases. 
The  forecast  in  the  Budget 2008  (and  in  the  AB 1/2008,  AB 2/2008,  AB 3/2008  and 
AB 4/2008)  was  established  at  the  139th  ACOR  meeting  on  16 May 2007.  The  revised 
forecast  taken  into  account  in  the  present  PDAB 5/2008  was  adopted  at  the  142nd  ACOR 
meeting  on  7 May 2008.  The  use  of  an  updated  forecast  of  own  resources  improves  the 
accuracy  of  the  payments  that  Member  States  are  asked  to  make  during  the  budgetary  year 
and reduces the unavoidable forecasting errors from the previous year. 

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As compared to the forecast agreed in May 2007, the forecast agreed in May 2008 has been 
revised as follows: 

– 

– 

– 

– 

– 

The  total  forecast  of  2008  net  agricultural  duties  was  decreased  by  – 23.8 %  to 
EUR 1 282.8 million (after deduction of 25 % in collection costs). The breakdown of 
this  total  forecast  between  Member  States  has  been  updated,  using  the  latest 
information  available  on  collected  2007  net  agricultural  duties.  The  revised  total 
forecast was provided by DG AGRI. 

The  total  forecast  of  2008  net  sugar  levies  was  increased  by  + 11.8 %  to 
EUR 707.8 million  (after  deduction  of  25 %  in  collection  costs).  The  revised  total 
forecast and breakdown between Member States were provided by DG AGRI. 

Total  2008  net  customs  duties  are  now  forecast  at  EUR 16 545.7 million  (after 
deduction  of  25 %  in  collection  costs),  which  represents  an  increase  by  + 0.7 % 
relative to the May 2007 forecast of EUR 16 431.9 million. The main reason for this 
increase is a higher forecast of the weighted average tariff (1.62 %, as compared to 
1.54 % last year). The forecast was made on a Member State basis, using DG ECFIN 
forecast growth rates of extra EU imports as published in the spring 2008 economic 
forecasts on 28 April 2008. 

The total 2008 EU uncapped VAT base is now forecast at EUR 6 023 302.5 million, 
which  represents  an  increase  of  + 0.9 %  as  compared  to  the  May 2007  forecast  of 
EUR 5 968 617.1 million.  The  total  2008  EU  capped  VAT  base7  is  forecast  at 
EUR 5 795 819.8 million,  which  represents  an  increase  of  + 0.5 %  as  compared  to 
the May 2007 forecast of EUR 5 766 921.4 million. 

The  total  2008  EU  GNI  base  is  forecast  at  EUR 12 556 324.2 million,  which 
represents  a  decrease  of  - 0.3 %  as  compared  to  the  May 2007  forecast  of 
EUR 12 589 247.2 million. 

The exchange rates of 31 December 2007 have been used for converting the forecast VAT & 
GNI bases in national currency into euro (for the twelve Member States that are not members 
of the euro zone). This avoids distortions since it is this rate which is used to convert budgeted 
own resources payments from euro into national currency when the amounts are called in (as 
stipulated in Article 10(3) of Council Regulation No 1150/2000). 

The revised forecasts of TOR (customs duties, agricultural duties and sugar levies), uncapped 
VAT bases and GNI bases for 2008, as adopted at the 142nd ACOR meeting on 7 May 2008, 
are set out in the following table (rounded figures): 

7 

In accordance with Council Decision No 2000/597; if the VAT base of a Member State exceeds 50 % 
of  its  GNI,  then  it  is  capped  at  these  50 %.  For  the  PDAB 5/2008,  13  Member  States  will  have  their 
VAT  base  capped  at  50 %  of  GNI:  Bulgaria,  the  Czech  Republic,  Estonia,  Ireland,  Greece,  Spain, 
Cyprus, Latvia, Luxembourg, Malta, Poland, Portugal and Slovenia. 

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Revised forecasts of TOR, VAT & GNI bases for 2008 (in million EUR) 

Agricultural 
duties 
(75%) 

Sugar  
levies 
(75%) 

Customs 
duties 
(75%) 

Uncapped 
VAT bases 

GNI bases 

Capped 
VAT bases 

BE 

BG 

CZ 

DK 

DE 

EE 

IE 

EL 

ES 

FR 

IT 

CY 

LV 

LT 

LU 

HU 

MT 

NL 

AT 

PL 

PT 

RO 

SI 

SK 

FI 

SE 

UK 

EU 

15,5 

15,5 

3,6 

31,6 

157,1 

0,9 

0,7 

7,6 

34,5 

103,4 

137,8 

3,8 

1,3 

2,8 

0,6 

4,6 

1,3 

227,7 

2,3 

37,7 

19,4 

32,1 

0,4 

1,2 

7,7 

20,5 

411,2 

42,6 

0,4 

6,4 

21,5 

163,7 

8,6 

0,0 

1,5 

8,5 

229,6 

7,9 

3,8 

0,8 

5,3 

0,0 

6,3 

0,2 

38,6 

13,8 

71,2 

0,3 

1,1 

0,0 

5,4 

0,9 

12,8 

56,6 

1 821,1 

61,5 

199,7 

318,4 

147 738,0 

20 026,7 

81 943,0 

101 055,2 

346 246,9 

147.738,00 

32 913,7 

132 949,3 

16.456,85 

66.474,65 

240 167,9 

101.055,20 

3 182,4 

1 069 378,5 

2 507 452,1 

1.069.378,50 

25,4 

238,5 

246,6 

1 330,0 

1 263,3 

1 672,2 

38,2 

29,3 

46,2 

20,4 

115,9 

9,7 

1 742,6 

219,7 

371,1 

136,3 

182,2 

94,6 

102,1 

150,8 

439,8 

2 487,7 

9 609,7 

100 353,1 

126 016,5 

660 383,6 

950 125,5 

644 894,3 

14 388,8 

12 592,0 

15 408,7 

19 830,7 

44 630,0 

4 251,2 

286 904,9 

124 368,7 

184 560,3 

98 465,8 

54 358,5 

19 372,0 

24 049,2 

79 761,2 

144 338,5 

984 497,9 

16 113,8 

8.056,90 

161 507,9 

80.753,95 

237 245,5 

118.622,75 

1 062 829,2 

531.414,60 

1 956 373,4 

950.125,50 

1 561 600,5 

644.894,30 

16 220,8 

22 592,8 

30 959,1 

29 545,1 

97 445,9 

5 476,3 

8.110,40 

11.296,40 

15.408,70 

14.772,55 

44.630,00 

2.738,15 

580 990,0 

286.904,90 

280 982,6 

124.368,70 

336 162,6 

168.081,30 

159 864,3 

79.932,15 

126 589,2 

35 200,1 

58 000,1 

189 631,5 

54.358,50 

17.600,05 

24.049,20 

79.761,20 

343 391,1 

144.338,50 

1 987 872,5 

984.497,90 

1 282,8 

707,8 

16 545,7 

6 023 302,5 

12 556 324,2 

5.795.819,80 

3.  2004 UK CORRECTION & 2007 UK CORRECTION 

The correction of budgetary imbalances in favour of the United Kingdom (UK correction) to 
be budgeted in the present PDAB concerns two years: 2004 and 2007. As the UK correction 
of a certain year is to be financed in the following year, all 27 Member States participate in 
the  financing  of  the  2007 UK correction.  The  financing  of  the  2004 UK correction  does, 
however, only concern the 25 countries that were Member States in 2005. 

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The  2004 UK correction  and  2007 UK correction  are  all  subject 
Council Decision (EC)  No 2000/597  and 
2000 Calculation Method8. 

its  accompanying  working  document, 

to 

the  rules  of 
the 

Pursuant to the above rules, the net “windfall gains” of the UK resulting from the increase as 
from 2001 in the percentage of TOR retained by Member States as a compensation for their 
collection  costs  are  neutralised  in  the  calculation  of  the  UK correction,  as  well  as  pre-
accession  expenditure  (PAE)  paid  under  appropriations  for  payments  relating  to  the  year 
preceding the enlargement. The same adjustment for PAE will be followed at the occasion of 
each future enlargement of the Union. 

Furthermore, the share of Austria, Germany, the Netherlands and Sweden in the financing of 
the UK correction is reduced to one fourth of their normal share. The reduction is financed by 
the  other  Member  States,  excluding  the  UK.  These  financing  rules  have  an  impact  on  the 
uniform rate of call of VAT, calculated as the difference between the maximum rate of call 
(0.50 %  of  the  capped  VAT  base)  and  the  frozen  rate  (whose  calculation  is  based  on  the 
2007 UK correction). 

The  difference  between  the  2004 UK correction  (definitive amount)  and  the  amount 
previously budgeted (in 2006) as well as the result of the entire recalculation of the financing 
of  the  whole  amount  of  the  2004 UK correction  on  the  basis  of  the  latest  data  for  2005  is 
entered  under  chapter 35  of  the  budget,  without  any  impact  on  the  uniform  rate  of  call  of 
VAT. 

The  amount  of  the  1st update  of  the  2007 UK correction  is  entered  under  chapter 15  of  the 
PDAB 5/2008, as a replacement of the provisional amount of the 2007 UK correction entered 
under chapter 15 of the Budget 2008. 

3.1.  Calculation of the corrections 

the  present  PDAB, 

the 
In 
2007 UK correction,  as  well  as  of  the  definitive amount  of  the  2004 UK correction  are 
entered. 

the  calculation  and 

financing  of 

the  1st update  of 

As far as the 2005 and 2006 UK corrections are concerned, the Commission shall (according 
to the 2000 Calculation Method) propose to  budget  an update  if it differs significantly from 
the  corresponding  previously  budgeted  calculation.  According  to  the  Commission’s  current 
calculations,  the  amount  of  the  2005  and  2006  UK corrections  do  not  differ  significantly 
from,  respectively,  the  1st update  of  the  2005 UK correction  entered  in  the  AB  4/2006  and 
from  the  1st update  of  the  2006 UK correction  entered  in  the  AB 5/2007.  Consequently,  an 
update is not proposed for budgeting in the present PDAB 5/2008. 

8 

EN 

Council  Decision  n°  2000/597  of  29  September  2000  on  the  system  of  the  EU  own  resources,  available  on: 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2000:253:0042:0046:EN:PDF 
and  Commission 
working  document  of  21  September  2000  "Calculation,  financing,  payment  and  entry  in  the  budget  of  the 
correction  of  budgetary  imbalances  in  accordance  with  Articles  4  and  5  of  Council  Decision  [2000/597]  on  the 
system  of 
the  2000 Calculation Method  and  available  on: 
referred  as 
http://ec.europa.eu/budget/library/documents/revenue_expenditure/own_resources/calc_own_res_en.pdf 

the  EU  own 

resources” 

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3.1.1. 

2007 UK correction 

The  following  table  summarises  the  changes  between  the  provisional amount  of  the 
2007 UK correction entered in the budget 2008 and the 1st update of the 2007 UK correction 
to be entered in the PDAB 5/2008. 

The  1st update  of  the  2007 UK correction  is  EUR 776.5 million  higher  as  compared  to  the 
provisional amount of the 2007 UK correction entered in the budget 2008. 

3.1.2. 

2004 UK correction 

The table hereafter summarises the changes between the 2nd update of the 2004 UK correction 
entered in the AB 4/2006 and the definitive amount of the 2004 UK correction to be entered in 
the PDAB 5/2008. 

2004 UK correction 

2nd UPDATE 
AB 4/2006 

DEFINITIVE
AB 5/2008 

Difference 

(1)  UK share of uncapped VAT base 

18,6437% 

18,6421%

(2) 

(3) 
(4) 
(5) 

(6) 

(7) 

UK share of PAE-adjusted total 
allocated expenditure 
= (1) - (2) 
Total allocated expenditure 
Pre-accession expenditure (PAE) 
PAE-adjusted total allocated 
expenditure = (4) - (5) 
UK correction original amount 
 = (3) x (6) x 0.66 

(8)  UK advantage 
(9)  Core UK correction = (7) - (8) 
(10)  TOR windfall gains 
(11)  UK correction = (9) - (10) 

- 0,0015%

- 0,0198%

7,9665% 

7,9467%

10,6772% 
92.157.248.765 
1.741.475.677 

10,6954%
92.456.248.291
1.758.152.082

+ 0,0183%
+ 298.999.526
+ 16.676.405

90.415.773.088 

90.698.096.209

+ 282.323.121

6.371.527.835 

6.402.357.774

+ 30.829.939

944.363.904 
5.427.163.931 
1.815.861 
5.425.348.070 

852.641.338
5.549.716.436
1.854.006
5.547.862.430

- 91.722.567
+ 122.552.505
+ 38.145
+ 122.514.360

The definitive amount of the 2004 UK correction is EUR 122.5 million higher as compared to 
the 2nd update of the 2004 UK correction entered in the AB 4/2006. The difference is due to 
the combined effect of five factors, which can be quantified as follows: 

– 

– 

– 

– 

– 

The  decrease 
2004 UK correction by around EUR 0.9 million. 

in 

the  UK  share  of  uncapped  VAT  base  decreases 

the 

The decrease in the UK share of PAE-adjusted total allocated expenditure increases 
the 2004 UK correction by around EUR 11.8 million. 

increase 

The 
2004 UK correction by around EUR 19.9 million. 

in  PAE-adjusted 

total  allocated  expenditure 

increases 

the 

The decrease in the so-called “UK advantage” increases the 2004 UK correction by 
EUR 91.7 million. 

increase 

The 
2004 UK correction by EUR 0.04 million. 

so-called 

the 

in 

“TOR  windfall  gains”  decreases 

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9 

the 

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3.2. 

Entry in the PDAB 5/2008 of the 1st update of the 2007 UK correction and of the 
definitive amount of the 2004 UK correction 

3.2.1. 

2007 UK correction (chapter 15) 

The amount of the UK correction to be budgeted in chapter 15 of the present PDAB 5/2008 is 
the amount of the 1st update of the 2007 UK correction (i.e. EUR 6 534 458 982, replacing the 
EUR 5 757 931 681 entered in the budget 2008). 

This amount is to be financed along the revised 2008 GNI bases of the present PDAB 5/2008. 
The budgeting of this amount in chapter 15 is summarised below: 

2007 UK correction 
Chapter 15 

LU 
301.040.283 
28.616.428  HU 
115.591.201  MT 
NL 
208.811.148 
AT 
387.588.536 
PL 
14.009.953 
PT 
140.421.139 
RO 
206.270.302 
SI 
924.064.312 
SK 
1.700.945.777 
FI 
1.357.715.136 
SE 
14.102.983 
UK 
19.643.043 
Total 
26.917.024

25.687.639 
84.723.188 
4.761.304 
89.806.327 
43.432.788 
292.272.608 
138.992.130 
110.061.487 
30.604.312 
50.427.503 
164.872.871 
53.079.560 
-6.534.458.982 
0 

BE 
BG 
CZ 
DK 
DE 
EE 
IE 
EL 
ES 
FR 
IT 
CY 
LV 
LT 

3.2.2. 

2004 UK correction (chapter 35) 

The financing of the definitive amount of the 2004 UK correction is entered in chapter 35 of 
the present PDAB 5/2008 along the 2005 GNI (and VAT) bases as known at the end of 2007. 
The amount budgeted in chapter 35 includes: 

– 

– 

9 

the  adjustment  as  regards  the  direct effect,  i.e.  the  difference  between  what  each 
Member State should pay for the definitive amount of the 2004 UK correction (along 
the  2005  GNI  bases  as  known  at  the  end  of  2007)  and  the  corresponding  amounts 
previously  budgeted  (i.e.  the  payments  for  the  financing  of  the  2nd update  of  the 
2004 UK correction budgeted in the AB 4/2006), 

the adjustment as regards the indirect effect, i.e. the difference between the implicit 
impact9 on Member States’ VAT and GNI payments of the definitive amount of the 
2004 UK correction (along the 2005 VAT & GNI bases as known at the end of 2007) 
and the implicit impact on Member States’ VAT & GNI payments of the 2nd update 
of the 2004 UK correction in the AB 4/2006 (along the 2005 VAT & GNI bases in 
the AB 4/2006). 

Due  to  the  effect  of  the  UK correction  on  the  uniform  rate  of  call  of  VAT  (reduced  by  the  ‘frozen  rate’)  and 
therefore also on the uniform rate of call of GNI (increased to compensate for the reduced VAT payments). 

EN 

10 

   EN 

 
                                                 
The financing of the definitive amount of the 2004 UK correction in chapter 35 of the present PDAB 5/2008 is summarised below: 

Definitive amount 

(direct effect along 2005 
GNI bases, as known at 
end 2007) 

(1) 

2nd update 
(direct effect budgeted in 
AB 4/2006, i.e. along 2005 
GNI bases as of 
AB 4/2006) 
(2) 

Adjustment 

direct effect 

(3) = (1) - (2) 

Definitive amount 
(indirect effect on VAT/GNI 
contributions in the 2005 
budget, as recalculated at 
end 2007) 
(4) 

2nd update 

Adjustment 

TOTAL 

(indirect effect on 
VAT/GNI contributions in 
the AB 4/2006) 

indirect effect 

(to be budgeted in 
chapter 35 of 
PDAB 5/2008) 

(5) 

(6) = (4) - (5) 

(7) = (3) + (6) 

+ 266.341.510 

+ 262.624.473 

+ 3.717.037 

+ 19.088.192 

+ 20.413.048 

- 1.324.856 

+ 2.392.182 

--- 

+ 83.459.703 

+ 184.043.960 

+ 345.309.864 

+ 9.425.231 

+ 119.506.036 

+ 170.161.439 

+ 783.021.401 

+ 1.518.604.760 

+ 1.239.429.371 

+ 11.499.370 

+ 11.298.666 

+ 17.867.304 

+ 21.875.024 

+ 72.734.887 

+ 3.956.719 

+ 78.280.825 

+ 37.257.336 

+ 206.212.499 

+ 127.428.953 

--- 

+ 24.526.412 

+ 32.558.651 

+ 139.062.549 

+ 43.999.962 

--- 

+ 81.844.717 

+ 179.379.323 

+ 339.165.140 

+ 8.653.506 

+ 118.533.396 

+ 153.724.675 

+ 772.537.094 

+ 1.496.997.388 

+ 1.202.835.172 

+ 11.355.828 

+ 11.008.739 

+ 17.728.576 

+ 19.825.112 

+ 71.709.914 

+ 3.802.050 

+ 75.626.643 

+ 36.970.559 

+ 200.640.137 

+ 125.814.037 

--- 

+ 23.572.815 

+ 31.678.907 

+ 135.770.745 

+ 43.549.125 

--- 

+ 1.614.985 

+ 4.664.638 

+ 6.144.723 

+ 771.726 

+ 972.640 

+ 16.436.764 

+ 10.484.306 

+ 21.607.371 

+ 36.594.198 

+ 143.542 

+ 289.927 

+ 138.728 

+ 2.049.912 

+ 1.024.973 

+ 154.669 

+ 2.654.183 

+ 286.776 

+ 5.572.363 

+ 1.614.916 

--- 

+ 953.597 

+ 879.744 

+ 3.291.804 

+ 450.837 

--- 

- 7.823.857 

+ 24.252.620 

+ 130.042.744 

- 883.560 

- 11.202.990 

- 15.951.636 

- 73.403.662 

- 80.950.295 

--- 

- 7.473.901 

+ 23.116.282 

+ 121.694.055 

- 790.221 

- 10.824.240 

- 14.037.840 

- 70.546.592 

- 80.966.680 

+ 172.108.282 

+ 163.777.228 

- 1.077.998 

- 436.896 

+ 572.227 

- 1.699.206 

+ 4.974.886 

- 370.919 

- 29.400.216 

+ 1.708.570 

- 19.331.212 

- 11.945.717 

--- 

- 2.299.207 

+ 226.597 

+ 7.847.790 

+ 9.077.065 

- 1.036.992 

- 1.682 

+ 1.877.083 

- 1.810.391 

+ 2.345.719 

- 347.196 

- 18.812.831 

+ 9.465.437 

- 14.756.174 

- 11.489.094 

--- 

- 2.152.624 

+ 4.069.667 

+ 5.590.257 

+ 16.430.597 

--- 

- 349.956 

+ 1.136.338 

+ 8.348.689 

- 93.339 

- 378.749 

- 1.913.797 

- 2.857.070 

+ 16.384 

+ 8.331.054 

- 41.006 

- 435.214 

- 1.304.856 

+ 111.185 

+ 2.629.167 

- 23.723 

- 10.587.385 

- 7.756.868 

- 4.575.037 

- 456.622 

--- 

- 146.583 

- 3.843.070 

+ 2.257.533 

- 7.353.532 

--- 

+ 1.265.029 

+ 5.800.976 

+ 14.493.411 

+ 678.387 

+ 593.890 

+ 14.522.967 

+ 7.627.237 

+ 21.623.756 

+ 44.925.252 

+ 102.536 

- 145.286 

- 1.166.128 

+ 2.161.097 

+ 3.654.140 

+ 130.946 

- 7.933.202 

- 7.470.091 

+ 997.325 

+ 1.158.294 

--- 

+ 807.014 

- 2.963.326 

+ 5.549.337 

- 6.902.695 

- 5.547.862.430 

- 5.425.348.070 

- 122.514.360 

- 113.121.602 

- 133.732.914 

+ 20.611.312 

- 101.903.048 

BE 

BG 

CZ 

DK 

DE 

EE 

IE 

EL 

ES 

FR 

IT 

CY 

LV 

LT 

LU 

HU 

MT 

NL 

AT 

PL 

PT 

RO 

SI 

SK 

FI 

SE 

UK 

Total 

0 

0 

0 

0 

0 

0 

0 

EN 

11 

EN 

 
  
 
 
  
EN 

12 

EN