Communication from the Commission to the Council and the European - Parliament Financial information on the European Development Funds
Date: 2009-06-29
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, 29.6.2009 
COM(2009) 310 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  2010,  in  accordance  with  the  1979 
agreements on budgetary procedure. 

In  accordance  with  Article  7  of  the  Internal  Agreement1  and  Article  57(3)  and  (4)  of  the 
Financial Regulation2, the Commission presents in this document estimates of commitments, 
payments and contributions for the period 2009 to 2010, taking into account the forecasts of 
the European Investment Bank (EIB) concerning the Investment Facility.  

As in previous years, this document sets out: 

–  implementation of the EDFs (8th to 10th) at 31.12.2008; 

–  financial implementation forecasts for the current year; 

–  expenditure forecasts for 2010. 

The  Member  States  contribute  funds  directly  to  the  European  Investment  Bank  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.  

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2 

Internal  Agreement  between  the  Representatives  of  the  Governments  of  the  Member  States,  meeting 
within the Council, on the financing of Community aid under the multiannual financial framework for 
the period 2008 to 2013 in accordance with the ACP-EC Partnership Agreement and on the allocation 
of financial assistance for the Overseas Countries and Territories to which Part Four of the EC Treaty 
applies, OJ L 247, 9.9.2006, p. 32. 
Council Regulation (EC) No 215/2008 of 18 February 2008 on the Financial Regulation applicable to 
the 10th European Development Fund. 

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INTRODUCTION 

The Commission and the EIB have updated their commitment and payment forecasts 
for  2009  and  2010  for  each  of  the  ACP  countries3  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  7  of  the  Internal  Agreement  on  the  10th  EDF5  and 
Article 57(5)  of  the  Financial  Regulation6,  estimates  will  be  revised  in  the  October 
2009 communication.  

The graph below shows the general trend in commitments and payments, including 
projections for 2009 (Commission and EIB). It clearly shows the structural upward 
trend in payments since 2000. 

EC + EIB: trend 1997-2008 commitments ― and payments ―; forecasts 2009  

 €

m

5.000

4.000

3.000

2.000

1.000

0

commitments

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

4.137
2.349

2004

2.972
2.558

2005

4.020
2.704

2006

4.049
3.062

2007

3.922
3.251

2008

5.242
3.483

2009

3.577
3.750

3 
4 
5 
6 

African, Caribbean and Pacific States. 
Overseas countries and territories. 
OJ L 247, 9.9.2006, p. 32. 
Council Regulation (EC) No 215/2008 of 18 February 2008 on the Financial Regulation applicable to 
the 10th European Development Fund 

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1. 

IMPLEMENTATION OF THE EUROPEAN DEVELOPMENT FUNDS AT 31 DECEMBER 2008 
(COMMITMENTS, PAYMENTS AND FINANCIAL SITUATION) 

Annex 1 shows actual commitments made in 2008 compared with the forecasts made 
in October 20087.  

Annex 2 shows actual payments  made in 2008  compared  with  the  forecasts  made  in 
October 20088.  

Annex 3 shows the financial situation recorded in 2008 and the projections made for 
2009 and 2010.  

2. 

FINANCIAL IMPLEMENTATION FORECASTS FOR 2009 AND 2010 

The new forecasts are set out in Annexes 1 to 3.  

The  new  forecasts  for  the  2009  contributions  confirm  the  Commission's  needs  at 
EUR 3 300 million and the EIB's at EUR 165 million. Note that these amounts are the 
same as those decided by the Council in November 20089.  

Contributions  for  2010  are  forecast  at  EUR 3 500 million  for  the  Commission  and 
EUR 240 million for the EIB.  

It  should  be  stressed  that  these  figures  are  just  a  preliminary  forecast  and  must  be 
treated  with  caution,  notably  in  the  light  of  COM(2009) 160  of  8  April  2009  on 
'Supporting developing countries cope with the crisis'. The Commission and the EIB 
will  make  more  reliable  forecasts  after  the  summer.  They  will  be  presented  in  the 
October communication. 

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COM(2007) 634 final of 7.10.2008. 
COM(2007) 634 final of 7.10.2008. 
Council Decision of 3 November 2008 on the financial contributions to be paid by the Member States to 
finance the European Development Fund in 2009 and 2010, including the first instalment for 2009. 

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Annex 1 

Commitments made in 2008 and forecast for 2009 and 2010

2008

2009

2010

Com.
Oct. 08

Made

Com.
Oct. 08

Revised

Com.
Oct. 08

Revised

€ m

Regions

East Africa

West Africa

Central Africa

Caribbean

Pacific

Southern Africa

Contingency reserve revised end of term

Subtotal

Other

Peace Facility

Other *

778

1486

482

123

39

170

959

1 585

466

126

30

929

949

790

352

355

106

712

751

737

569

262

73

275

3 076

4 095

3 264

2667

0

502

300

448

300

186

0

380

Total Commission

3 578

4 843

3 750

3 047

3 750

3 750

Investment Facility

Interest-rate subsidy

Total EIB

TOTAL

450

70

520

338

61

399

450

80

530

450

80

530

550

550

4 098

5 241

4 280

3 577

4 300

4 300

* Includes certain support expenditures, e.g. to support joint institutions and the ACP 
Secretariat,  and  mobilisation  of  the  "B"  envelope  in  connection,  inter  alia,  with  the 
food price crisis and for the ad hoc 'Vulnerability FLEX' instrument to help deal with 
the current economic and financial crisis. 

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Annex 2 

Payments made in 2008 and forecast for 2009 and 2010

Regions

East Africa

West Africa

Central Africa

Caribbean

Pacific

Southern Africa

Subtotal

Other

Peace Facility

Water Facility

Risk capital*

HIPC debt relief

Infrastructure trust funds

Other

Subtotal

Stabex

€ m

REV

2010
Com.
Oct. 08

2008
Com.
Oct. 08

Made

2009
Com.
Oct. 08

627

804

324

217

68

366

699

829

359

239

64

376

844

916

457

264

85

380

REV

743

778

407

296

65

400

2 406

2 567

2 946

2 689

41

100

51

180

40

288

24

105

23

80

0

23

70

51

0

1

391

282

88

108

37

100

1

281

3 106

3 190

3 373

3 304

34

25

2

17

Total Commission**

3 140

3 215

3 375

3 321

3 600

3 600

Investment Facility

Interest-rate subsidies

Total EIB

TOTAL EC+EIB

250

43

293

220

48

268

349

80

429

349

80

429

340

100

440

340

100

440

3 433

3 483

3 804

3 750

4 040

4 040

Gross payments, i.e. without recoveries being deducted. 

*Including interest-rate subsidies under the previous EDFs. 

**The level of payments forecast for 2009, namely €3.321 million, is justified by the 
fact  that  in  2008  we  paid  out  more  than  forecast  because  of  the  migration  to  a  new 
accounting system. 

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Annex 3: Financial situation recorded in 2008 and forecast for 2009 and 2010 (€ m) 

Balance at 31/12/2007 **
Contributions 2008, of which:

1st instalment
2nd instalment
3rd instalment
transfer

8
0
0
2

Contributions 2009 advance payments
Reflows***
Recoveries, interest and other

Communication + 
Decision Oct 08* 

Revision

EC

EIB TOTAL EC

EIB TOTAL

77
200
170
70
0
-40

140

57
3000
1635
1000
325
40

75

134
3200
1805
1070
325
0

140
75

57
3000
1635
1000
325
40
233

84

77
200
170
70
0
-40

129

134
3200
1805
1070
325
0
233
129
84

Total payments

-3140

-293

-3433

-3215

-268

-3483

Payments Stabex (already financed)

Receipts Dem Rep Congo Special Fund

Balance at 31/12/2008

Contributions 2009, of which:

1st instalment

2nd instalment

3rd instalment

Contributions 2009 paid in 2008
Reflows

Recoveries, interest and other

Total payments

Payments Stabex (already financed)

Balance at 31/12/2009

Contributions 2010
Reflows

Recoveries, interest and other

Total payments

9
0
0
2

0
1
0
2

34

26

3300

1750

1100

450

75

124

165

55

90

20

170

34

150

3465

1805

1190

470

170

75

25

2

186

3300

1750

1100

450
-233

65

138

165

55

90

20

134

25

2

324

3465

1805

1190

470
-233
134

65

-3375

-429

-3804

-3321

-429

-3750

25

51

3500

75

30

240
200

25

81

3740
200

75

17

14

3500

65

8

240
188

17

22

3740
188

65

-3600

-440

-4040

-3600

-440

-4040

Payments Stabex (already financed)

32

32

30

30

Balance at 31/12/2010

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*See COM(2008) 634 final of 7 October 2008 and Council document 14995/1/08 of 3 November 
2008 with revised figures for the EIB. 

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30

88

-4

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**Without advance payment of contributions. Funds available for operations. Gross payments, 
i.e. without recoveries being deducted. 

*** Proceeds and income received by the EIB from operations under the Investment Facility 
under the 9th and 10th EDF. 

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ANNEX 4 – Contributions to the EDF for 2009 by Member State (EUR) 

Member State 

Scale 

1st instalment 

2nd instalment 

3rd instalment 

TOTAL 

paid to  
EIB 

paid to  
Commission 

payable to 
EIB 

payable to  
Commission 

payable to 
EIB 

payable to 
Commission 

% 

instalments

23,36 

12 848 000

408 800 000

21 024 000

256 960 000

4 672 000

105 120 000

809 424 000

3,92 

2,14 

5,84 

2 156 000

68 600 000

3 528 000

43 120 000

784 000

17 640 000

135 828 000

1 177 000

37 450 000

1 926 000

23 540 000

428 000

9 630 000

74 151 000

3 212 000

102 200 000

5 256 000

64 240 000

1 168 000

26 280 000

202 356 000

24,30 

13 365 000

425 250 000

21 870 000

267 300 000

4 860 000

109 350 000

841 995 000

1,25 

0,62 

687 500

341 000

21 875 000

1 125 000

13 750 000

10 850 000

558 000

6 820 000

250 000

124 000

5 625 000

43 312 500

2 790 000

21 483 000

12,54 

6 897 000

219 450 000

11 286 000

137 940 000

2 508 000

56 430 000

434 511 000

0,29 

5,22 

0,97 

159 500

5 075 000

261 000

3 190 000

58 000

1 305 000

10 048 500

2 871 000

91 350 000

4 698 000

57 420 000

1 044 000

23 490 000

180 873 000

533 500

16 975 000

873 000

10 670 000

194 000

4 365 000

33 610 500

12,69 

6 979 500

222 075 000

11 421 000

139 590 000

2 538 000

57 105 000

439 708 500

2,65 

1,48 

2,73 

1 457 500

46 375 000

2 385 000

29 150 000

530 000

11 925 000

91 822 500

814 000

25 900 000

1 332 000

16 280 000

296 000

6 660 000

51 282 000

1 501 500

47 775 000

2 457 000

30 030 000

546 000

12 285 000

94 594 500

100,00  55 000 000 1 750 000 000

90 000 000

1 100 000 000

20 000 000

450 000 000

3 465 000 000

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

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