Communication from the Commission to the European Parliament and the Council on the technical adjustment of the financial framework for 2011 in line with movements in GNI, including the adjustment of amounts allocated from funds supporting cohesion to the Member States concerned by divergence between estimated and actual GDP for the period 2007-2009 presented in accordance with points 16 and 17 of the Interinstitutional Agreement of 17 May 2006
Date: 2010-04-16
Institutions: European Commission
Subjects: budgetary discipline (EU), budgetary procedure, financial management, fund (EU), interinstitutional agreement

EN 

EN 

   EN 

 
EUROPEAN COMMISSION 

Brussels, 16.4.2010 
COM(2010)160 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT AND THE COUNCIL  

on the technical adjustment of the financial framework for 2011 in line with movements 
in GNI, including the adjustment of amounts allocated from funds supporting cohesion 
to the Member States concerned by divergence between estimated and actual GDP for 
the period 2007-2009 

presented in accordance with points 16 and 17 of the Interinstitutional Agreement of 17 May 
2006 

EN 

   EN 

 
 
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT AND THE COUNCIL  

on the technical adjustment of the financial framework for 2011 in line with movements 
in GNI, including the adjustment of amounts allocated from funds supporting cohesion 
to the Member States concerned by divergence between estimated and actual GDP for 
the period 2007-2009 

1. 

INTRODUCTION 

In  2010,  exceptionally,  the  annual  technical  adjustment  of  the  financial  framework 
for 2011 concerns not only the regular adjustment to movements in prices and GNI 
(Point  16  of  the  Interinstitutional  Agreement  (IIA)  of  17  May  2006  on  budgetary 
discipline and sound financial management1) but also an adjustment for heading 1B 
(Point 17 of the IIA). 

In fact, Point 17 of the IIA states that, "in its technical adjustment for the year 2011, 
if  it  is  established  that  any  Member's  State  cumulated  GDP  for  2007-2009  has 
diverged by more than +/- 5% from the cumulated GDP estimated when drawing up 
this  Agreement,  the  Commission  will  adjust  the  amounts  allocated  from  funds 
supporting  cohesion  to  the  Member  State  concerned  for  that  period…".  Point  17 
further  introduces  a  first  constraint  that  the  total  net  effect,  whether  positive  or 
negative, of those adjustments may not exceed €3 billion and  in particular a second 
constraint that, in case the net effect is positive, "total additional resources shall be 
limited to the level of under-spending against the ceilings for sub-heading 1B for the 
years 2007-2010". Finally Point 17 stipulates that "the required adjustments will be 
spread  in  equal  proportions  over  the  years  2011-2013  and  the  corresponding 
ceilings will be modified accordingly." 

According  to  Point  16  of  the  IIA,  the  Commission  makes  each  year,  ahead  of  the 
budgetary procedure for year n+1, a technical adjustment to the financial framework 
in  line  with  movements  in  the  EU's  gross  national  income  (GNI)  and  prices  and 
communicates the results to the two arms of the budgetary authority. As far as prices 
are concerned, expenditure ceilings at current prices are established using the fixed 
2%  deflator  foreseen  in  point  16  of  the  IIA.  As  far  as  movements  in  GNI  are 
concerned,  the  present  Communication  includes  the  latest  economic  forecasts 
available. 

The purpose of this communication is to present to the budgetary authority the result 
of  the  technical  adjustment  (EU-27)  for 2011  according  to  Points  16  and  17  of  the 
IIA. 

1 

OJ C 139, 14/06/2006, p. 1. 

EN 

2 

   EN 

                                                 
2. 

ADJUSTMENT OF THE 2011-2013 CEILINGS FOR HEADING 1B (POINT 17) 

2.1. 

Eligibility of Member States 

According to Point 17 of the IIA, the Commission must adjust the amounts allocated 
from funds supporting cohesion for any Member State for which the cumulated GDP 
for 2007-2009 has diverged by more than +/- 5% from the cumulated GDP estimated 
at the time the IIA was being drawn up. The divergence must therefore be measured 
between  the  statistics  published  in  April  20052  and  those  published  in  November 
2009, which represent the most recent data available.  

This provision only has practical applications for those Member States whose global 
cohesion  allocation  is  subject  to  capping3,  i.e.  Bulgaria,  Czech  Republic,  Estonia, 
Latvia,  Lithuania,  Hungary,  Poland,  Romania  and  Slovakia.  The  amounts  allocated 
from funds supporting cohesion for the other Member States are not affected by the 
2007-2009 divergence in GDP. 

The comparison between both sets of statistical data yields the following result: 

GDP DIVERGENCE FOR MEMBER STATES SUBJECT TO CAPPING (in million of euro)

GDP April 2005

GDP November 2009

2004 prices

2004 prices

Change in 
cumulated 
GDP (in %)

2007

2008

2009

2007-2009

2007

2008

2009

2007-2009 2007-2009

22.912
96.288
10.692
13.591
21.431
89.668
221.697
68.474
38.193

24.333
98.984
11.430
14.556
22.653
92.807
230.565
72.308
40.026

25.841
101.558
12.219
15.575
23.921
96.055
239.326
76.430
42.028

73.086
296.830
34.341
43.723
68.005
278.530
691.588
217.211
120.247

23.836
106.370
12.493
15.258
23.188
89.840
240.056
72.943
43.441

25.270
108.991
12.047
14.563
23.828
90.419
252.069
77.494
46.218

23.787
103.761
10.402
11.945
19.510
84.574
255.084
71.313
43.527

72.893
319.121
34.942
41.766
66.526
264.833
747.209
221.750
133.186

-0,3%
7,5%
1,8%
-4,5%
-2,2%
-4,9%
8,0%
2,1%
10,8%

MS

BG
CZ
EE
LV
LT
HU
PL
RO
SK

No  Member  State  has  a  negative  GDP  divergence  of  more  than  5%.  There  is 
therefore no need to reduce the amounts allocated to any Member State. On the other 
hand, there are three Member States with a positive divergence in excess of 5%: the 
Czech  Republic  (+  7.5%),  Poland  (+  8.0%)  and  Slovakia  (+  10.8%).  The  amounts 
allocated  from  funds  supporting  cohesion  for  these  Member  States  will  therefore 
have to be increased. 

2.2. 

Establishment of the global amount of 'underspending' 

Since the net effect of the adjustment will be positive, it is necessary to determine the 
level of 'underspending' against the ceilings for sub-heading 1B for the years 2007-
2010. This 'underspending' consists of three different elements4: 

2 
3 
4 

Point 9 of Annex II to Council Regulation 1083/2006 of 11 July 2006. 
Points 7, 8 and 11 of Annex II to Council Regulation 1083/2006 of 11 July 2006. 
As explained in the Working document of the Commission services 'Fiche 99' of 15 February 2006. 

EN 

3 

   EN 

 
                                                 
•  the  sum  of  the  differences  between  the  ceilings  for  heading  1B  for  each  of  the 
years 2007 to 2010 and the commitment appropriations budgeted for the period; 

•  the cancelled (or lapsed) commitment appropriations under heading 1b for each of 
the  years  2007  to  2010,  excluding  the  2007  amounts  transferred  to  subsequent 
years under point 48 of the IIA5; 

•  the  de-commitments  of  the  years  2007-2010  related  to  cohesion  expenditure, 

excluding the amounts related to EAGGF Guidance and the FIFG. 

The details of the 'underspending' are given in the table below, taking into account 
the most recent data available. 

(euro, in current prices)

2007

2008

2009

2010

2007-2010

TOTAL AMOUNT OF 'UNDERSPENDING'

Margin remaining under the MFF ceiling

215 496

11 051 280

115 331

407 908

11 790 015

Commitment appropriations lapsing
                                              -of which: ERDF

                                                                 ESF

                                                                CF

Decommitted amounts
                                              -of which: ERDF

                                                                 ESF

                                                                CF

42 787 703
29 717 900

6 259 180

6 810 622

323 264 877
124 407 271

108 725 892

90 131 714

19 160 452
8 838 287

2 488 174

7 833 991

318 477 242
149 551 124

133 800 548

35 125 570

15 389 737
7 043 668

3 542 515

4 803 554

276 279 461
133 199 660

64 175 778

78 904 023

77 337 892
45 599 856

12 289 869

19 448 167

918 021 581
407 158 056

306 702 218

204 161 307

Total

366 268 076

348 688 975

291 784 529

407 908 1 007 149 488

The  positive  adjustment  for  all  Member  states  concerned  will  therefore  be  globally 
restricted to an amount of € 1 007 million.  This amount respects the first constraint 
limiting the total net effect of the adjustments to € 3 billion. 

2.3. 

Adjustment of the 2011-2013 ceilings for heading 1B 

Based  on  the  global  allocations  by  Member  State  for  the  period  2007-2009,  the 
positive adjustment would theoretically have amounted to € 3 331 million. However, 
given  the  constraint  presented  by  the  level  of  'underspending',  the  positive 
adjustments are proportionally reduced as follows: 

TOTAL ADJUSTMENT PER MEMBER STATE        (in euro, in current prices)

Total allocation heading 1B  

Change in 
cumulated 
GDP

Theoretical adjustment

Actual adjustment 
restricted to 

'underspending'          

2007-2009

2007-2009

2011-2013

2011-2013

10 440 261 659
26 007 799 809
4 233 110 456
40 681 171 924

7,5%
8,0%
10,8%

784 045 993
2 091 682 418
455 490 779
3 331 219 190

237 045 801
632 392 153
137 711 534
1 007 149 488

MS

CZ
PL
SK
TOTAL 

5 

Decision of the European Parliament and of the Council of 29 April 2008 (OJ L 128/8 16.5.2008) 

EN 

4 

   EN 

 
 
                                                 
The required adjustments need to be spread in equal proportions over the years 2011-
2013.  Furthermore,  the  corresponding  adjustments  of  the  ceilings  for  heading  1B 
need to be made in million of euro. 

The  ceilings  for  commitment  appropriations  for  heading  1B  (in  current  prices)  are 
therefore increased as follows: 

•  2011: + 336 million 

•  2012: + 336 million 

•  2013: + 336 million 

2.4. 

Payment appropriations 

Point  23,  fourth  paragraph,  of  the  IIA  provides  that  any  revision  must  maintain  an 
appropriate  relationship  between  commitments  and  payments.  Hence,  the  annual 
ceilings for payment appropriations need to be modified on the basis of the payment 
profiles foreseen for the additional commitments under heading 1b. Given that most 
of the payments related to this increase in commitments are expected to occur post-
2013, the increase in the payment ceilings remains limited. 

The ceilings for payment appropriations (in current prices) are therefore increased as 
follows: 

•  2011: + 17 million 

•  2012: + 87 million 

•  2013: + 187 million 

2.5. 

Summary table and conclusion 

The  below  table  summarises  the  changes  to  the  ceilings  for  commitment  and 
payment  appropriations  in  the  financial  framework.  Amounts  are  expressed  in 
current prices: 

(EUR million)

2007

2008

2009

2010

2011

2012

2013

2007-2013

1b. Cohesion for Growth and 
Employment

Total
change
appropriations

change
Total
appropriations

in commitment

0

0

0

0

in

payment

336

336

17

336

336

87

336

1 008

336

178

1 008

282

The  financial  framework  table  included  in  the  IIA6  is  expressed  in  constant  2004 
prices.  The  amounts  in  current  values  are  thus  to  be  converted  into  2004  prices  by 
means of a fixed deflator of 2% a year, in accordance with Point 16 of the IIA. 

6 

As  most  recently  amended  by  the  Decision  of  the  European  Parliament  and  of  the  Council  of  17 
December  2009  amending  the  IIA  of  17  May  2006  on  budgetary  discipline  and  sound  financial 

EN 

5 

   EN 

 
                                                 
Table  1  shows  the  financial  framework  for  EU-27  in  2004  prices  as  modified  in 
accordance with Point 17 of the IIA. 

3. 

TECHNICAL ADJUSTMENT OF THE FINANCIAL FRAMEWORK FOR 2011 IN LINE WITH 
MOVEMENTS OF GNI (POINT 16) 

Table  2  shows  the  financial  framework  for  EU-27  taking  into  account  the  above-
mentioned adjustment of the 2011-2013 ceilings and adjusted for 2011 (i.e. in current 
prices  and  expressed  in  percentage  of  GNI  using  the  latest  economic  forecasts 
available). 

3.1. 

Total figure for GNI 

According  to  the  latest  forecast  available,  the  GNI  for  2011  is  established  at 
EUR 12 354 021.3 million 
at 
for  2009, 
EUR 11 966 504.7 million 
EUR 12 294 000.1 million for 2008 and EUR 12 206 170.2 million for 2007). 

in 
EU-27 
prices 
for  2010,  EUR 11 614 170.1 million 

current 

(and 

for 

For subsequent years (2012-2013) the EU-27 GNI has been calculated on the basis of 
internal  Commission  projections  for  the  annual  average  growth  rate  in  real  terms. 
These  projections  are  indicative  and  will  be  updated  annually  on  the  basis  of  the 
latest economic forecasts available. 

The  2010  and  2011  GNI  includes  financial  intermediation  services  indirectly 
measured  (FISIM)  based  on  Council  Decision  2010/196/EU,  Euratom  of  16  March 
2010 to apply FISIM for own resources purposes7 from 1 January 2010 onwards.  

3.2.  Main results of the technical adjustment of the Financial Framework for 2011 

(EU-27) 

The  overall  ceiling  on  commitment  appropriations  for  2011  (EUR 142 965 million) 
equals 1.16 % of GNI. 

The  corresponding  overall  ceiling  concerning 
the  payment  appropriations 
(EUR 134 280 million)  equals  1.09 %  of  GNI.  On  the  basis  of  the  latest  economic 
forecasts,  this  leaves  a  margin  beneath  the  1.23 %  own  resources  ceiling  of 
EUR 17 674 million (0.14 % of GNI for EU-27). 

The  ceilings  for  own  resources  and  for  commitment  appropriations  were  adapted 
following  the  entry  into  force  of  Decision  2010/196  to  apply  FISIM  for  own 
resources purposes8. 

7 

8 

management as regards the multiannual financial framework – Financing projects in the field of energy 
in the context of the European Economic Recovery Plan (OJ L 347, 24/12/2009, p. 26). 
Council Decision 2010/196/EU, Euraton of 16 March 2010 on the allocation of financial intermediation 
services indirectly  measured (FISIM) for the establishment of the Gross National Income (GNI) used 
for the purposes of the European Union's budget and its own resources, OJ L 87, 7.4.2010, p. 31. 
Communication from the Commission to the EP and the Council on the adaptation of the ceiling of own 
resources and of the ceiling for appropriations for commitments following the decision to apply FISIM 
for own resources purposes, COM(2010) 162 final. 

EN 

6 

   EN 

                                                                                                                                                         
4. 

OTHER ELEMENTS LINKED TO THE TECHNICAL ADJUSTMENT 

4.1. 

Heading 5 (Administration) 

In the case of heading 5, a footnote to the financial framework states that the figures 
for  pensions  included  under  the  ceiling  for  this  heading  are  to  be  calculated  net  of 
staff  contributions  to  the  pension  scheme,  up  to  a  maximum  of  EUR 500  million 
(2004  prices)  for  the  period  2007-2013.  This  provision  should  be  interpreted  as 
imposing a dual limit on the amounts deducted from expenditure on pensions when 
applying the ceiling of the heading: 

– 

– 

This  amount  may  not  exceed  the  contributions  actually  entered  as  budget 
revenue in any one year; 

The accumulated total of deductions for the period 2007-2013 may not exceed 
EUR 500 million at 2004 prices, equivalent to an average of EUR 71.4 million 
(EUR 82 million at 2011 prices). 

The  recurrent  nature  of  administrative  expenditure  imposes  that  the  lowest  limit  is 
adopted annually to avoid using a margin at the start of the period which would no 
longer  be  fully  available  afterwards.  For  2011  the  amount  to  be  deducted  is 
EUR 82 million at current prices. 

4.2. 

Expenditure items outside the financial framework 2007-2013 

A  number  of  instruments  are  available  outside  expenditure  ceilings  agreed  in  the 
financial framework 2007-2013. These instruments aim at providing rapid response 
to exceptional or unforeseen events, and provide some flexibility beyond the agreed 
expenditure ceilings within certain limits: 

– 

– 

– 

the Emergency Aid reserve, which can be mobilised up to a maximum amount 
of EUR 221 million per year in 2004 prices, or EUR 253.9 million in 2011 at 
current prices (EUR 1 744 million for the whole period in current prices); 

the  EU  Solidarity  Fund,  whose  maximum  annual  amount  in  current  prices  is 
EUR 1 billion; 

the Flexibility Instrument, with a maximum annual amount in current prices of 
EUR 200 million,  plus  the  portion  of  the  unused  annual  amounts  of  the  years 
2008-2010, which may be carried over to year 2011; 

In  addition,  it  will  be  possible  to  mobilise  the  European  Globalisation  Adjustment 
Fund  (EGF)  up  to  a  maximum  of  EUR 500 million  per  year  in  current  prices  by 
drawing  from  any  margin  existing  under  the  global  ceiling  for  commitment 
appropriations  of  the  previous  year,  and/or  from  cancelled  commitments  from  the 
previous two years (excluding those related to heading 1b).  

5. 

OPERATIONS OUTSIDE THE BUDGET AND OWN RESOURCES 

The  fourth  subparagraph  of  Point 11  of  the  Interinstitutional  Agreement  states  that 
information  relating  to  operations  not  included  in  the  general  budget  and  the 

EN 

7 

   EN 

foreseeable development of the various categories of own resources is to be set out in 
tables, as an indication, and updated annually when the technical adjustment is made 
to the financial framework. 

This  information,  updated  in  line  with  the  latest  estimates  available,  is  set  out  in 
Tables 3.1 to 3.2. It covers the European Development Fund (EDF) and the structure 
of own resources. 

EN 

8 

   EN 

TABLE 1: FINANCIAL FRAMEWORK 2007-2013 ADJUSTED FOR POINT 17 

ANNEX  

COMMITMENT APPROPRIATIONS

1. Sustainable Growth

1a Competitiveness for Growth and Employment
1b Cohesion for Growth and Employment

2. Preservation and Management of Natural Resources
of which: market related expenditure and direct payments

3. Citizenship, freedom, security and justice

3a Freedom, Security and Justice
3b Citizenship

4. EU as a global player
5. Administration (1)
6. Compensations

(EUR million - constant 2004 prices)

2007

50 865

8 404

42 461

51 962

43 120

1 199

600

599

6 199

6 633

419

2008

53 262

9 595

43 667

54 685

42 697

1 258

690

568

6 469

6 818

191

2009

55 879

12 018

43 861

51 023

42 279

1 375

785

590

6 739

6 816

190

2010

56 435

12 580

43 855

53 238

41 864

1 503

910

593

7 009

6 999

0

2011

55 693

11 306

44 387

52 528

41 453

1 645

1 050

595

7 339

7 255

0

2012

57 153

12 122

45 031

51 901

41 047

1 797

1 200

597

7 679

7 400

0

2013

58 537

12 914

45 623

51 284

40 645

1 988

1 390

598

8 029

7 610

0

Total
2007-2013
387 824

78 939

308 885

366 621

293 105

10 765

6 625

4 140

49 463

49 531

800

TOTAL COMMITMENT APPROPRIATIONS

117 277

122 683

122 022

125 184

124 460

125 930

127 448

865 004

as a percentage of GNI

1,08%

1,09%

1,06%

1,06%

1,03%

1,02%

1,01%

1,049%

TOTAL PAYMENT APPROPRIATIONS

115 142

119 805

109 091

119 245

116 899

120 649

119 933

820 764

as a percentage of GNI
Margin available
Own Resources Ceiling as a percentage of GNI

1,06%

0,18%

1,24%

1,06%

0,18%

1,24%

0,95%

0,29%

1,24%

1,01%

0,22%

1,23%

0,97%

0,26%

1,23%

0,98%

0,25%

1,23%

0,95%

0,28%

1,23%

1,00%

0,23%

1,23%

(1) The expenditure on pensions included under the ceiling for this heading is calculated net of the staff contributions to the relevant scheme, within the limit of € 500 million at 
2004 prices for the period 2007-2013.

EN 

9 

EN 

 
  
 
TABLE 2: FINANCIAL FRAMEWORK 2007-2013 ADJUSTED FOR 2011 AND POINT 17 

COMMITMENT APPROPRIATIONS

1. Sustainable Growth

1a Competitiveness for Growth and Employment
1b Cohesion for Growth and Employment

2. Preservation and Management of Natural Resources
of which: market related expenditure and direct payments

3. Citizenship, freedom, security and justice

3a Freedom, Security and Justice
3b Citizenship

4. EU as a global player
5. Administration (1)
6. Compensations

2007

53 979

8 918

45 061

55 143

45 759

1 273

637

636

6 578

7 039

445

2008

57 653

10 386

47 267

59 193

46 217

1 362

747

615

7 002

7 380

207

2009

61 696

13 269

48 427

56 333

46 679

1 518

867

651

7 440

7 525

210

2010

63 555

14 167

49 388

59 955

47 146

1 693

1 025

668

7 893

7 882

0

2011

63 974

12 987

50 987

60 338

47 617

1 889

1 206

683

8 430

8 334

0

(EUR million - current prices)

2013

69 957

15 433

54 524

61 289

48 574

2 376

1 661

715

9 595

9 095

0

Total
2007-2013
437 778

89 363

348 415

413 061

330 085

12 216

7 549

4 667

55 935

55 925

862

2012

66 964

14 203

52 761

60 810

48 093

2 105

1 406

699

8 997

8 670

0

TOTAL COMMITMENT APPROPRIATIONS

124 457

132 797

134 722

140 978

142 965

147 546

152 312

975 777

as a percentage of GNI

1,02%

1,08%

1,16%

1,18%

1,16%

1,15%

1,14%

1,13%

TOTAL PAYMENT APPROPRIATIONS

122 190

129 681

120 445

134 289

134 280

141 360

143 331

925 576

as a percentage of GNI
Margin available
Own Resources Ceiling as a percentage of GNI

1,00%

0,24%

1,24%

1,05%

0,19%

1,24%

1,04%

0,20%

1,24%

1,12%

0,11%

1,23%

1,09%

0,14%

1,23%

1,10%

0,13%

1,23%

1,07%

0,16%

1,23%

1,07%

0,16%

1,23%

(1) The expenditure on pensions included under the ceiling for this heading is calculated net of the staff contributions to the relevant scheme, within the limit of € 500 million at 
2004 prices for the period 2007-2013.

EN 

10 

EN 

 
  
 
TABLE 3: INDICATIVE PROGRAMME OF EXPENDITURE NOT ENTERED IN THE GENERAL BUDGET 
AND PROSPECTIVE TREND IN THE VARIOUS OWN RESOURCES 

INDICATIVE PROGRAMME OF EXPENDITURE NOT ENTERED IN THE GENERAL BUDGET
AND PROSPECTIVE TREND IN THE VARIOUS OWN RESOURCES

TABLE 3.1 : EUROPEAN DEVELOPMENT FUND

Commitments (C) and Payments (P)
EUR million - current prices
2001

2000

2002

2003

2004

2005

C
4 007

P
1 640

C
1 927

P
1 779

C
2 125

P
1 922

C
3 769

P
2 345

C
2 648

P
2 464

C
3 511

P
2 544

2006

2007

2008

2009

2010

2011

P
2 826

C
3 408
The series relate to the measures managed by the Commission. Measures managed by the European Investment Bank are not included.
The amounts for 2001 to 2004 have been amended to take account of the impact of the regularisation of certain payments made on the Stabex instrument. 

C
2 900

P
3 123

P
3 280

C
3 502

C
3 636

P
2 929

C
3 704

P
3 601

C
3 750

P
4 000

TABLE 3.2 : OWN RESOURCES BY CATEGORY

% of total
Traditional own resources (TOR)
VAT
GNP/GNI
2000-2008: outturns (including the retroactive adjustment in 2002 of 15% of the amounts retained in 2001 as TOR collection costs)

2005
14%
16%
70%

2004
13%
15%
72%

2001
18%
39%
43%

2003
13%
26%
61%

2006
15%
17%
69%

2000
17%
40%
43%

2002
12%
29%
59%

2007
15%
18%
67%

2008
16%
17%
67%

2009
13%
12%
74%

2010
12%
11%
77%

2009: Amending Budget 10/2009 & 2010: Adopted Budget 2010.

EN 

11 

EN