Draft amending budget N° 5 to the general budget 2010 -General statement of revenue
Date: 2010-06-15
Institutions: Directorate-General for Budget, European Commission
Subjects: EU Member State, amending budget, budget estimate, budgetary resources, draft budget (EU), financial year, general budget (EU)

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EUROPEAN COMMISSION 

Brussels, 15.6.2010 
COM(2010)320 final 

DRAFT AMENDING BUDGET N° 5 
TO THE GENERAL BUDGET 2010 

GENERAL STATEMENT OF REVENUE 

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   EN 

 
 
 
   
DRAFT AMENDING BUDGET N°5 
TO THE GENERAL BUDGET 2010 

GENERAL STATEMENT OF REVENUE 

Having regard to: 

– 

– 

– 

the Treaty on the Functioning of the European Union, and in particular Article 314 
thereof,  in  conjunction  with  the  Treaty  establishing  the  European  Atomic  Energy 
Community, and in particular Article 106a 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, 
and in particular Article 37 thereof, 

the  general  budget  of  the  European  Union  for  the  financial  year  2010  adopted  on 
17 December 20092, 

The  European  Commission  hereby  presents  to  the  budgetary  authority  the  Draft  Amending 
Budget No 5 to the 2010 budget. 

1 
2 

OJ L 248, 16.9.2002, p. 1. 
OJ L 64, 12.3.2010. 

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TABLE OF CONTENTS 

1. 

2. 

3. 

3.1. 

3.2. 

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

OLAF ........................................................................................................................... 4 

Own resources.............................................................................................................. 5 

Revision of the forecast of TOR, VAT and GNI bases................................................ 6 

2006 UK correction, 2008 UK correction and 2009 UK correction ............................ 8 

3.2.1.  Calculation of the corrections .................................................................................... 10 

3.2.2.  Entry in the DAB 5/2010 of the 1st update of the 2009 UK correction, 2nd update of 

the 2008 UK correction and of the definitive amount of the 2006 UK correction .... 12 

3.3. 

Revision of the financing of the gross reductions in GNI payments of Sweden and 
the Netherlands in 2010 ............................................................................................. 16 

CHANGES TO THE GENERAL STATEMENT OF REVENUE 

The  changes  to  the  general  statement  of  revenue  are  available  on  EUR-Lex  (http://eur-
lex.europa.eu/budget/www/index-en.htm).  An  English  version  of  the  changes  to  this 
statement is attached for information as a budgetary annex. 

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1. 

INTRODUCTION 

The Draft Amending Budget No 5 to the Budget for 2010 (DAB 5/2010) covers the following 
elements: 

– 

– 

the  modifications  to  the  establishment  plan  of  OLAF,  without  additional  financial 
provisions 

the revision of the forecast of Traditional Own Resources (TOR, i.e. customs duties 
and  sugar  sector  levies),  VAT  and  GNI  bases,  the  budgeting  of  the  relevant  UK 
corrections as well as their financing and revision of financing of GNI reductions in 
favour  of  the  Netherlands  and  Sweden  in  2010,  resulting  in  a  change  in  the 
distribution  between  Member  States  of  their  own  resources  contributions  to  the 
EU budget. 

2.  OLAF 

When  OLAF  was  established,  there  was  a  need  to  recruit  rapidly  a  large  number  of 
operational  fraud  specialists,  who  were  not  available  in  Commission  services.  To  face  this 
situation, the budget authority transformed a large number of permanent posts into temporary 
posts in 2003, so that the Office could become operational as soon as possible. 

A large intake of temporary agents took place at the time. As these staff approached the end 
of their contracts, OLAF needed to take measures to avoid massive departures and the loss of 
know-how developed over time. 

A  first  temporary  measure  was  the  renewal  of  temporary  contracts  that  became  indefinite 
contracts. However, only the increase of the proportion of officials to temporary agents over 
time would provide a long-term stable solution. 

With  this  perspective,  an  agreement  was  reached  between  the  Commission  and  the  Staff 
Associations in 2007 to launch external and internal competitions to facilitate the recruitment 
of OLAF temporary agents as officials. External competitions will also provide laureates that 
are  not  currently  OLAF  temporary  agents  and  thus  constitute  an  additional  source  for 
qualified specialists in view of future recruitment. 

Thanks  to  the  approval  of  Amending  Budget  n°  8/2009  including  the  modification  of  the 
establishment plan of OLAF, the Commission was able to use the available lists of laureates 
resulting from the external competitions (AD11, AD8, AST4). 

New  lists  of  laureates  of  the  internal  competition  (AD8  &  AD10)  were  published  in  March 
2010. OLAF now has the opportunity to bring the adaptation of its establishment plan to an 
end by recruiting a significant number of these laureates as permanent officials and hence to 
fulfil the initial political agreement. 

OLAF wishes however to avoid potential departures of its laureates to other DGs before the 
establishment  plan  has  been  adopted  in  the  2011  Budget.  Moreover,  posts  cannot  be 
converted while being occupied. Therefore, both coverages in its establishment plan should be 
allowed for  a limited period  of time, i.e.  of the old posts  of laureates (temporary agents) as 
well as of their new posts with their new grades (permanent posts). 

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To carry out this conversion, OLAF requests an amendment to  the 2010 establishment plan 
with 20 additional AD10 permanent posts required for the recruitment of laureates. This does 
not  entail  any  additional  financial  provision  for  2010  because,  as  noted  in  the  proposed 
establishment plan below, the cumulated number of permanent and temporary staff in place 
may not exceed 384 authorised posts. 

The  2011  Draft  Budget  already  integrates  the  reduction  of  the  equivalent  number  of  AD10 
temporary posts from OLAF's establishment plan, i.e. the establishment plan 2011 shows no 
increases in the number of posts compared to 2010. 

The establishment plan proposed is included in annex. 

3.  OWN RESOURCES 

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

– 

– 

– 

– 

– 

3 
4 
5 
6 

the Budget 2010, 

the Amending Budget (AB) 1/20103 modifies the 2010 budget in order to cover the 
impact  related  to  the  entry  into  force  of  the  Lisbon  Treaty  for  the  European 
Parliament as adopted in its draft statement of estimates. It increases the 2010 budget 
by EUR 9.4 million and the establishment plan with 150 posts. 

DAB 2/20104  modifies  the  2010  budget  in  order  to  cover  the  impact  related  to  the 
entry  into  force  of  the  Lisbon  Treaty  for  the  European  Economic  and  Social 
Committee (EESC), and the Committee of Regions (CoR) and modifications to the 
establishment  plan  of  BEREC  (Body  of  European  Regulators  for  Electronic 
Communications)  Office,  without  additional  financial  provisions  and  without 
additional  post.  This  DAB  proposes  to  increase  the  2010  budget  by  an  overall 
amount  of  EUR 10.5 million  and  the  establishment  plan  of  the  two  institutions 
concerned with 59 posts. 

DAB 3/20105 modifies the 2010 budget in order to include appropriations related to 
the establishment of the financing of the Banana Accompanying Measures (BAM) in 
favour of the main ACP banana-supplying countries affected by the Most Favoured 
Nation  (MFN)  liberalisation  in  the  framework  of  the  World  Trade  Organisation 
(WTO), following the proposal of amending Regulation (EC) No 1905/2006. The net 
financial  impact  of  this  amending  budget  is  EUR 19.2 million  in  additional 
commitment appropriations, with no new request for payment appropriations.  

DAB 4/20106  modifies  the  2010  budget  in  order  to  budget  the  surplus  from  the 
previous  year.  The  implementation  of  the  budget  year  2009  shows  a  surplus  of 
EUR 2 253 591 199, which is therefore entered as revenue in the 2010 budget. 

As adopted on 19 May 2010. 
COM(2010) 108 final of 19/3/2010 
COM(2010) 149 final of 8/4/2010 
COM(2010) 169 final of 16/4/2010 

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– 

The present DAB 5/2010. 

   Budget 2010 

AB 1/2010 

DAB 2/2010 

DAB 4/2010 

DAB 5/2010 

DAB 5/2010 
vs. 
DAB 4/2010 

(1) 

(2) 

(3) 

(4) 

(6) 

in % 

(7) = (6) – (5) 

amounts in million euro 

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 

4 878.6 
416.4 
1 477.3 
2 639.8 
23 725.7 
156.1 
1 523.9 
2 618.5 
11 340.8 
20 328.1 
16 207.0 
214.7 
186.3 
310.4 
298.6 
925.2 
68.6 
6 107.9 
2 661.9 
3 210.1 
1 664.1 
1 408.2 
442.5 
805.4 
1 905.6 
2 771.5 
13 213.6 

4 878.9 
416.4 
1 477.4 
2 639.9 
23 727.4 
156.1 

1 524.0 
2 618.6 
11 341.5 
20 329.4 
16 208.0 

214.7 
186.3 
310.4 
298.6 
925.3 

68.6 
6 108.2 
2 662.1 
3 210.3 
1 664.2 

1 408.3 
442.5 
805.5 
1 905.7 
2 771.7 
13 214.7 

4 879.1 
416.4 
1 477.5 
2 640.1 
23 729.4 
156.1 

1 524.1 
2 618.8 
11 342.3 
20 331.0 
16 209.2 

214.7 
186.3 
310.4 
298.6 
925.4 

68.6 
6 108.7 
2 662.3 
3 210.5 
1 664.3 

1 408.4 
442.5 
805.5 
1 905.9 
2 771.9 
13 216.0 

4 814.4 
409.9 
1 453.1 
2 594.2 
23 270.3 
153.6 

1 498.4 
2 572.7 
11 146.2 
19 959.4 
15 921.3 

211.4 
182.9 
305.4 
293.2 
909.3 

67.5 
5 998.1 
2 610.1 
3 155.9 
1 634.8 

1 383.6 
435.6 
792.4 
1 871.7 
2 715.9 
12 909.8 

4 692.0 
364.5 
1 423.5 
2 464.8 
23 826.9 
140.0 

1 387.9 
2 405.1 
10 489.2 
19 754.7 
15 690.3 

191.0 
180.7 
293.3 
271.3 
964.1 

62.2 
5 942.8 
2 586.3 
3 520.3 
1 654.0 

1 203.5 
402.2 
687.2 
1 765.5 
2 810.0 
14 097.5 

3.93% 
0.31% 
1.19% 
2.07% 
19.98% 
0.12% 

1.16% 
2.02% 
8.79% 
16.56% 
13.16% 

0.16% 
0.15% 
0.25% 
0.23% 
0.81% 

0.05% 
4.98% 
2.17% 
2.95% 
1.39% 

1.01% 
0.34% 
0.58% 
1.48% 
2.36% 
11.82% 

- 122.3 
- 45.4 
- 29.6 
- 129.3 
+ 556.6 
- 13.6 

- 110.5 
- 167.6 
- 657.0 
- 204.7 
- 231.0 

- 20.4 
- 2.1 
- 12.1 
- 21.9 
+ 54.8 

- 5.4 
- 55.3 
- 23.8 
+ 364.4 
+ 19.2 

- 180.1 
- 33.4 
- 105.2 
- 106.1 
+ 94.2 
+ 1 187.7 

EU 

121 506.7 

121 514.7 

121 524.4 

119 270.8 

119 270.8 

100% 

+ 0 

3.1. 

Revision of the forecast of TOR, VAT and 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  to  be  paid  to  the  budget  in  2010  as  well  as  the 
forecast  of  the  2010  VAT  and  GNI  bases.  The  forecast  in  the  Budget 2010  (and  in  the 
AB 1/2010 to DAB 4/2010) was established at the 145th ACOR meeting on 12 May 2009. The 
revised  forecast  taken  into  account  in  the  present  DAB 5/2010  was  adopted  at  the  148th 
ACOR meeting on 18 May 2010. The use of an updated forecast of own resources improves 

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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. 

As compared to the forecast agreed in May 2009, the forecast agreed in May 2010 has been 
revised as follows: 

– 

– 

– 

– 

The  total  forecast  of  2010  net  sugar  sector  levies  has  not  changed  and  remains 
EUR 123.4 million (after deduction of 25 % in collection costs).  

increase  by  + 10.8 %  relative 

Total  2010  net  customs  duties  (including  duties  on  agricultural  products)  are  now 
forecast at EUR 15 595.8 million (after deduction of 25 % in collection costs), which 
the  May 2009  forecast  of 
represents  an 
EUR 14 079.7 million. The main  reason for this increase is higher forecast of 2010 
extra-EU  imports  of  goods  and,  a  higher  forecast  of  the  weighted  average  tariff 
(1.56 %,  as  compared  to  1.41 %  last  year).  The  forecast  was  made  on  a  Member 
State  basis,  using  forecast  growth  rates  of  extra-EU  imports  as  published  in  the 
spring 2010 economic forecasts on 5 May 2010. 

to 

The total 2010 EU uncapped VAT base is now forecast at EUR 5 307 999.8 million, 
which  represents  a  decrease  of  – 5.4 %  as  compared  to  the  May 2009  forecast  of 
EUR 5 609 119.7 million.  The  total  2010  EU  capped  VAT  base7  is  forecast  at 
EUR 5 252 084.10 million,  which  represents  a  decrease  of  – 4.3 %  as  compared  to 
the May 2009 forecast of EUR 5 489 325.75 million. 

The  total  2010  EU  GNI  base  is  forecast  at  EUR 12 056 189.4 million,  which 
represents  an  increase  of  + 2.0 %  as  compared  to  the  May 2009  forecast  of 
EUR 11 825 562.6 million. 

The  exchange  rates  of  31 December 2009  have  been  used  for  converting  the  forecast  VAT 
and  GNI  bases  in  national  currency  into  euro  (for  the  eleven  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, uncapped VAT bases and GNI bases for 2010, as adopted at 
the 148th ACOR meeting on 18 May 2010, are set out in the following table (rounded figures): 

7 

In accordance with Council Decision No 2007/436; if the VAT base of a Member State exceeds 50 % 
of its GNI, then it is capped at these 50 %. For the DAB 6/2010, 8 Member States will have their VAT 
base  capped  at  50 %  of  GNI:  Ireland,  Cyprus,  Lithuania,  Luxembourg,  Malta,  Poland,  Portugal  and 
Slovenia. 

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Revised forecasts of TOR, VAT and GNI bases for 2010 (in million EUR) 

Sugar sector 
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 

6.6 
0.4 
3.4 
3.4 
26.3 
0.0 
0.0 
1.4 
4.7 
30.9 
4.7 
0.0 
0.0 
0.8 
0.0 
2.0 
0.0 
7.3 
3.2 
12.8 
0.2 
1.0 
0.0 
1.4 
0.8 
2.6 
9.5 

1 440.4 
52.7 
177.4 
301.9 
3 154.6 
15.8 
172.2 
163.0 
1 036.9 
1 280.6 
1 701.7 
31.2 
19.5 
44.2 
11.4 
100.0 
9.8 
1 877.2 
159.9 
336.0 
128.2 
131.2 
73.5 
88.2 
124.9 
422.3 
2 541.1 

143 942.0 
15 763.2 
61 869.6 
93 201.2 
1 060 967.8 
6 460.4 
65 481.8 
108 211.5 
390 464.2 
867 275.6 
604 589.1 
16 004.6 
6 767.5 
13 808.5 
19 788.6 
41 167.0 
4 233.7 
257 072.0 
127 296.4 
183 316.1 
99 745.1 
44 705.0 
18 855.7 
25 274.0 
77 416.2 
138 929.6 
815 393.4 

350 057.4 
33 014.2 
131 405.3 
236 215.5 
2 488 996.3 
13 129.2 
128 058.4 
231 304.5 
1 029 757.3 
1 977 940.6 
1 529 325.7 
16 793.4 
17 390.2 
26 288.3 
27 509.8 
93 133.9 
5 497.8 
582 069.4 
279 822.6 
332 072.4 
159 946.8 
117 245.8 
34 469.9 
64 859.1 
175 637.8 
314 113.4 
1 660 134.4 

143 942.00 
15 763.20 
61 869.60 
93 201.20 
1 060 967.80 
6 460.40 
64 029.20 
108 211.50 
390 464.20 
867 275.60 
604 589.10 
8 396.70 
6 767.50 
13 144.15 
13 754.90 
41 167.00 
2 748.90 
257 072.00 
127 296.40 
166 036.20 
79 973.40 
44 705.00 
17 234.95 
25 274.00 
77 416.20 
138 929.60 
815 393.40 

123.4 

15 595.8 

5 307 999.8 

12 056 189.4 

5 252 084.10 

3.2. 

2006 UK correction, 2008 UK correction and 2009 UK correction 

The correction of budgetary imbalances in favour of the United Kingdom (UK correction), to 
be  budgeted  in  the  present  DAB,  concerns  three  years:  2006,  2008  and  2009.  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 all the three UK corrections, including the 2006 UK correction. 

The 2006 UK correction is subject to the rules of Council Decision (EC) No 2000/597 and its 
accompanying working document, the 2000 Calculation method8. Pursuant to the rules of this 
Decision, the net “windfall gains” of the UK resulting from the increase as from 2001 in the 

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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:2007:163:0017:0021:EN:PDF  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 EU 
own 
on: 
http://ec.europa.eu/budget/library/documents/revenue_expenditure/own_resources/calc_own_res_en.pdf. 

2000 Calculation Method 

resources” 

available 

referred 

and 

the 

as 

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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 but it will cease to apply as from the correction to be budgeted for the first time in 
2014. 

The  2008  and  2009 UK corrections  are  subject  to  the  rules  of  Council Decision (EC) 
No 2007/436  and  its  accompanying  working  document,  the  2007 Calculation Method9. 
Pursuant to the rules of this Decision, the net TOR “windfall gains” are still neutralised in the 
calculation of the UK correction. Moreover, the allocated expenditure is adjusted by: 

–  the pre-accession expenditure (PAE); 

–  20 %  for  2008  correction  and  70%  for  2009  correction  of  total  allocated  expenditure  in 
Member  States  that  have  acceded  to  the  EU  after  30  April  2004,  except  for  agricultural 
direct  payments  and  market-related  expenditure  as  well  as  that  part  of  the  rural 
development expenditure originating from the EAGGF, Guarantee section. This reduction 
is be phased-in progressively (20 % for 2008 correction budgeted in 2009, 70 % for 2009 
correction budgeted in 2010 and 100 % as from 2010 correction budgeted in 2011). 

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. For the 2006 UK correction 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  2006 UK correction  (definitive amount)  and  the  amount 
previously budgeted (in 2007) as well as the result of the entire recalculation of the financing 
of  the  whole  amount  of  the  2006 UK correction  on  the  basis  of  the  latest  data  for  2007  is 
entered  under  chapter 35  of  the  budget,  without  any  impact  on  the  uniform  rate  of  call  of 
VAT. 

The difference between the 2nd update of the 2008 UK correction and the amount previously 
budgeted (1st update in AB 6/2009) is entered under chapter 36 of the DAB 5/2010. 

The  amount  of  the  1st update  of  the  2009 UK correction  is  entered  under  chapter 15  of  the 
DAB 5/2010, as a replacement of the provisional amount of the 2009 UK correction entered 
under chapter 15 of the Budget 2010. 

9 

EN 

Council  Decision  n°  2007/436  of  7  June  2007  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 23 May 2007 "Calculation, financing, payment and entry in the budget of the correction of budgetary 
imbalances  in  accordance  with  Articles  4  and  5  of  Council  Decision  [2007/436]  on  the  system  of  the  EU  own 
resources” 
on: 
http://ec.europa.eu/budget/library/documents/revenue_expenditure/own_resources/calc_own_res_2007_en.pdf. 

2007 Calculation Method 

available 

referred 

and 

the 

as 

9 

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3.2.1.  Calculation of the corrections 

In the present DAB, the calculation and financing of the 1st update of the 2009 UK correction, 
2nd  update  of  the  2008  UK  correction  as  well  as  of  the  definitive amount  of  the 
2006 UK correction are entered. 

As far as the 2007 UK correction is concerned, the Commission shall (according to the 2000 
and 2007 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  2007  UK correction  does  not  differ  significantly  from,  the 
2nd update  of  the  2007 UK correction  entered  in  AB 3/2009.  Consequently,  an  update  is  not 
proposed for budgeting in the present DAB 5/2010. 

3.2.1.1.  2009 UK correction 

The  following  table  summarises  the  changes  between  the  provisional amount  of  the 
2009 UK correction entered in Budget 2010 and the 1st update of the 2009 UK correction to 
be entered in DAB 5/2010. 

2009 UK correction 

(1)  UK share of uncapped VAT base 

(2) 

UK share of enlargement-adjusted total 
allocated expenditure 
= (1) - (2) 

(3) 
(4)  Total allocated expenditure 

(5) 

Enlargement-related expenditure 
= (5a) + (5b) 

(5a)  Pre-accession expenditure 
(5b)  Expenditure related to Art 4(1)(g) 

(6) 

(7) 

Enlargement-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) 

2009 UK 
correction 
PROVISIONAL 
Budget 2010 

2009 UK 
correction 
1st UPDATE 
DAB 5/2010 

Difference 

13.8313% 

7.2604% 

15.3708% 

+ 1.5395%

7.2824% 

+ 0.0220%

6.5709% 
104 614 895 122 

8.0884% 
102 757 465 239 

+ 1.5175%
- 1 857 429 883

12 586 767 352 

16 329 279 323 

+ 3 742 511 970

3 023 312 156 
9 563 455 197 

3 025 371 614 
13 303 907 709 

+ 2 059 458
+ 3 740 452 512

92 028 127 769 

86 428 185 916 

- 5 599 941 853

3 991 091 896 

4 613 827 364 

+ 622 735 468

19 427 650 
3 971 664 245 
13 121 864 
3 958 542 381 

1 094 564 313 
3 519 263 051 
-216 427 
3 519 479 477 

+ 1 075 136 663
- 452 401 195
- 13 338 291
- 439 062 904

The  1st update  of  the  2009 UK correction  is  EUR 439.1 million  lower  as  compared  to  the 
provisional amount of the 2009 UK correction entered in Budget 2010. 

For the 2009 UK correction the difference in original amount of the UK correction between 
ORD 2000 and ORD 2007 is EUR 1 270.1 million in 2004 prices and EUR 1 349.6 million in 
current prices. 

3.2.1.2.  2008 UK correction 

following 

the 
The 
2008 UK correction entered in AB 6/2009 and the 2nd update of the 2008 UK correction to be 
entered in DAB 5/2010. 

the  changes  between 

table  summarises 

the  1st  update  of 

EN 

10 

   EN 

 
 
2008 UK correction 

2008 UK correction 
1st update 
AB 6/2009 

2008 UK correction 
2nd update 
DAB 5/2010 

Difference 

(2) 

(1)  UK share of uncapped VAT base 
UK share of enlargement-adjusted 
total allocated expenditure 
= (1) - (2) 

(3) 
(4)  Total allocated expenditure 

(5) 

Enlargement-related expenditure 
= (5a) + (5b) 

(5a)  Pre-accession expenditure 
(5b)  Expenditure related to Art 4(1)(g) 

(6) 

(7) 

Enlargement-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) 

15.3765% 

7.1985% 

15.7045% 

+ 0.3280%

7.3387% 

+ 0.1402%

8.1780% 
105 572 261 496 

8.3658% 
105 538 033 501 

+ 0.1878%
- 34 227 995

5 923 110 090 

5 908 600 354 

- 14 509 737

3 009 254 322 
2 997 216 436 

3 014 323 610 
2 894 276 744 

+ 5 069 288
- 102 939 692

99 649 151 406 

99 629 433 147 

- 19 718 258

5 378 550 722 

5 500 964 647  + 122 413 925

31 432 569 
5 347 118 153 
-31 474 531 
5 378 592 685 

289 477 443  + 258 044 874
- 135 630 949
- 11 336 168
- 124 294 781

5 211 487 204 
-42 810 700 
5 254 297 904 

The  2nd update  of  the  2008 UK correction  is  EUR 124.3 million  lower  as  compared  to  the 
1st update of the 2008 UK correction entered in AB 6/2010.  

For the 2008 UK correction the difference in original amount of the UK correction between 
ORD  2000  and  ORD  2007  is  EUR 278.2  million  in  2004  prices  and  EUR 300 million  in 
current prices. 

3.2.1.3.  2006 UK correction 

The table hereafter summarises the changes between the 1st update of the 2006 UK correction 
entered  in  AB 5/2007  and  the  definitive amount  of  the  2006 UK correction  to  be  entered  in 
DAB 5/2010. 

2006 UK correction 

1st UPDATE 
AB 5/2007 

DEFINITIVE 
DAB 5/2010 

Difference 

(1)  UK share of uncapped VAT base 

(2) 

UK share of PAE-adjusted total 
allocated expenditure 
= (1) - (2) 

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

(6) 

(7) 

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

17.6888% 

8.6868% 

9.0020% 
96 930 892 220 
1 837 927 773 

17.2771% 

- 0.4117%

8.6928% 

+ 0.0060%

8.5843% 

- 0.4177%
97 195 051 529  + 264 159 309
- 631 686

1 837 296 087 

95 092 964 446 

95 357 755 442  + 264 790 995

5 649 772 605 

5 402 613 496 

- 247 159 109

339 974 729 
5 309 797 876 
-21 571 097 
5 331 368 973 

26 640 660 
5 375 972 836 
-9 196 589 
5 385 169 425 

- 313 334 069
+ 66 174 960
+ 12 374 508
+ 53 800 452

EN 

11 

   EN 

 
 
 
The definitive amount of the 2006 UK correction is EUR 53.8 million higher as compared to 
the 1st update of the 2006 UK correction entered in the AB 5/2007. The difference is due to 
the combined effect of five factors, which can be quantified as follows: 

– 

– 

– 

– 

– 

The  decrease 
2006 UK correction by around EUR 258.4 million. 

in 

the  UK  share  of  uncapped  VAT  base  decreases 

the 

The increase in the UK share of PAE-adjusted total allocated expenditure decreases 
the 2006 UK correction by around EUR 3.8 million. 

increase 

The 
2006 UK correction by around EUR 15 million. 

in  PAE-adjusted 

total  allocated  expenditure 

increases 

the 

The decrease  in the so-called “UK advantage” increases the 2006 UK correction by 
EUR 313.3 million. 

increase 

The 
2006 UK correction by EUR 12.4 million. 

so-called 

the 

in 

“TOR  windfall  gains”  decreases 

the 

3.2.1.4.  EUR 10.5 billion ceiling 

According  to  article  4(2)  of  Decision  2007/436,  during  the  period  2007-2013  the  additional 
contribution of the United Kingdom resulting from the reduction of allocated expenditure by 
the expenditure related to enlargement as referred to in paragraph (1)(g) of ORD 2007 shall 
not exceed EUR 10.5 billion, measured in 2004 prices. The cumulative effect of 2007, 2008 
and 2009 is EUR 1 548.3 million in 2004 prices and EUR 1 649.6 million in current prices. 

2007-2012 UK corrections 
Difference in original amount in reference to EUR 10.5 billion 
threshold 
(ORD 2007 vs. ORD 2000), in EUR 

(A) 
(B) 
(C) 
(D) 
(E) 
(F) 
(G) 

2007 UK correction 
2008 UK correction  
2009 UK correction  
2010 UK correction 
2011 UK correction 
2012 UK correction 
Sum of differences = (A) + (B) + (C) + (D) + (E) + (F) 

Difference 
in current  
prices 

Difference 
in constant  
2004 prices 

0 
- 299 990 334 
-1 349 647 274 
n/a 
n/a 
n/a 
-1 649 637 608 

0
- 278 238 906
-1 270 060 542
n/a
n/a
n/a
-1 548 299 448

3.2.2.  Entry in the DAB 5/2010 of the 1st update of the 2009 UK correction, 2nd update of 
the 2008 UK correction and of the definitive amount of the 2006 UK correction 

3.2.2.1.  2009 UK correction (chapter 15) 

The amount of the UK correction to be budgeted in chapter 15 of the present DAB 5/2010 is 
the amount of the 1st update of the 2009 UK correction (i.e. EUR 3 519 479 477, replacing the 
EUR 3 958 542 381 entered in Budget 2010). 

EN 

12 

   EN 

 
 
This amount is to be financed along the revised 2010 GNI bases of the present DAB 5/2010. 
The budgeting of this amount in chapter 15 is summarised below: 

2009 UK correction 
Chapter 15 

LU 
166 903 516 
15 740 807  HU 
62 652 601  MT 
NL 
112 624 951 
AT 
210 656 145 
PL 
6 259 858 
PT 
61 056 836 
RO 
110 283 440 
SI 
490 976 949 
SK 
943 060 313 
FI 
729 165 665 
SE 
8 006 908 
UK 
8 291 456 
12 533 972
Total 

13 116 370 
44 405 219 
2 621 291 
49 263 430 
23 682 779 
158 328 466 
76 260 874 
55 901 507 
16 434 869 
30 924 105 
83 742 170 
26 584 980 
-3 519 479 477 
0 

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

3.2.2.2.  2008 UK correction (chapter 36) 

The amount of the UK correction to be budgeted in chapter 36 of the present DAB 5/2010 is 
the  difference  between  the  2nd update  of  the  2008 UK correction  (i.e.  EUR 5 254 297 904) 
and the 1st update of the 2008 UK correction (i.e. EUR 5 378 592 685 entered in AB 6/2009) 
that amounts to EUR 124 294 781. 

This amount is to be financed along the revised 2009 GNI bases as known at the end of 2009. 
The budgeting of this amount in chapter 36 is summarised below: 

2008 UK correction 
Chapter 36 

LU 
-3 504 541 
-1 523 420  HU 
496 143  MT 
NL 
AT 
PL 
PT 
RO 
SI 
SK 
FI 
SE 
UK 
Total 

-8 155 544 
-213 638 
-602 251 
-7 602 523 
-7 281 407 
-17 398 703 
-22 865 571 
-18 521 220 
-379 606 
224 016 
-1 577 325

-2 092 216 
-2 763 065 
-170 277 
-5 075 335 
-501 383 
-2 489 164 
-312 262 
-10 996 050 
-1 405 069 
-3 676 917 
-7 803 260 
1 895 807 
124 294 781 
0 

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

3.2.2.3.  2006 UK correction (chapter 35) 

The financing of the definitive amount of the 2006 UK correction is entered in chapter 35 of 
the present DAB 5/2010 along the 2007 GNI (and VAT) bases as known at the end of 2009. 
The amount budgeted in chapter 35 includes: 

EN 

13 

   EN 

 
– 

– 

the  adjustment  as  regards  the  direct effect,  i.e.  the  difference  between  what  each 
Member State should pay for the definitive amount of the 2006 UK correction (along 
the  2007  GNI  bases  as  known  at  the  end  of  2009)  and  the  corresponding  amounts 
previously  budgeted  (i.e.  the  payments  for  the  financing  of  the  1st update  of  the 
2006 UK correction budgeted in AB 5/2007), 

the adjustment as regards the indirect effect, i.e. the difference between the implicit 
impact10 on Member States’ VAT and GNI payments of the definitive amount of the 
2006 UK correction  (along  the  2007  VAT  and  GNI  bases  as  known  at  the  end  of 
2009)  and  the  implicit  impact  on  Member  States’  VAT  and  GNI  payments  of  the 
1st update  of  the  2006 UK correction  in  AB 5/2007  (along  the  2007  VAT  and  GNI 
bases in AB 5/2007). 

10 

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). This 
effect ceased to apply retrospectively from 1 January 2007 as the Decision 2007/436 sets the rate of call at 0.30% 
for all Member States, except for Austria (0.225%), Germany (0.15%), Sweden and the Netherlands (0.10%) for 
the period 2007-2013 only. 

EN 

14 

   EN 

 
                                                 
The financing of the definitive amount of the 2006 UK correction in chapter 35 of the present DAB 5/2010 is summarised below: 

Definitive amount 

1st update 

(indirect effect on 
VAT/GNI contributions in 
the AB 5/2007) 

Adjustment 

indirect effect 

TOTAL 

(to be budgeted in 
chapter 35 of 
DAB 5/2010) 

Definitive amount 

1st update 

(direct effect along 2007 
GNI bases, as known at 
end 2009) 

(1) 

+ 249 940 431 
+ 21 167 891 
+ 87 728 118 
+ 169 243 569 
+ 324 788 939 
+ 10 714 712 
+ 119 985 370 
+ 162 432 190 
+ 760 257 178 
+ 1 420 519 729 
+ 1 136 622 087 
+ 11 246 640 
+ 15 195 336 
+ 20 433 796 
+ 22 019 517 
+ 69 259 368 
+ 3 918 643 
+ 75 278 731 
+ 34 780 819 
+ 221 717 357 
+ 115 780 545 
+ 89 574 476 
+ 25 060 496 
+ 39 482 418 
+ 133 402 138 
+ 44 618 930 
- 5 385 169 425 
0 

(direct effect budgeted in 
AB 5/2007, i.e. along 2007 
GNI bases as of 
AB 5/2007) 
(2) 

+ 247 212 185 
+ 20 764 704 
+ 87 357 575 
+ 172 772 662 
+ 318 742 577 
+ 10 859 310 
+ 121 023 454 
+ 152 627 502 
+ 765 255 697 
+ 1 392 588 247 
+ 1 139 811 242 
+ 11 199 633 
+ 14 173 037 
+ 19 622 507 
+ 22 469 561 
+ 69 777 536 
+ 3 802 778 
+ 73 440 295 
+ 35 128 529 
+ 213 586 087 
+ 115 125 921 
+ 85 592 444 
+ 23 502 134 
+ 38 324 928 
+ 132 254 957 
+ 44 353 471 
- 5 331 368 973 
0 

Adjustment 

direct effect 

(3) = (1) - (2) 

+ 2 728 246 
+ 403 187 
+ 370 543 
- 3 529 093 
+ 6 046 362 
- 144 598 
- 1 038 084 
+ 9 804 688 
- 4 998 519 
+ 27 931 482 
- 3 189 155 
+ 47 007 
+ 1 022 299 
+ 811 289 
- 450 044 
- 518 168 
+ 115 865 
+ 1 838 436 
- 347 710 
+ 8 131 270 
+ 654 624 
+ 3 982 032 
+ 1 558 362 
+ 1 157 490 
+ 1 147 181 
+ 265 459 
- 53 800 452 
0 

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 

EN 

(indirect effect on VAT/GNI 
contributions in the 2007 
budget, as recalculated at 
end 2009) 
(4) 

+ 22 212 022 
- 1 800 949 
- 7 131 775 
+ 12 899 436 
+ 176 292 715 
- 911 600 
- 10 208 267 
- 13 819 611 
- 64 682 120 
- 61 518 081 
+ 68 752 962 
- 956 856 
- 1 292 808 
- 1 738 492 
- 1 873 404 
+ 550 108 
- 333 395 
- 18 170 730 
+ 4 986 328 
- 18 863 549 
- 9 850 523 
+ 9 388 194 
- 2 132 128 
+ 4 471 219 
+ 11 061 910 
+ 20 478 709 
- 115 809 314 
0 

15 

(5) 

(6) = (4) - (5) 

(7) = (3) + (6) 

+ 19 914 357 
- 1 887 005 
- 7 938 671 
+ 18 568 078 
+ 143 159 304 
- 986 846 
- 13 870 115 
- 69 543 065 
- 92 265 129 
- 10 998 078 
+ 160 473 916 
- 1 017 773 
- 1 287 983 
- 201 238 
- 2 041 935 
+ 6 731 327 
- 345 580 
- 27 052 672 
+ 5 137 671 
- 19 409 762 
- 10 462 136 
+ 6 874 380 
- 2 135 770 
+ 1 150 679 
+ 7 555 724 
+ 14 705 770 
- 122 827 447 
0 

+ 2 297 665
+ 86 056
+ 806 896
- 5 668 642
+ 33 133 411
+ 75 246
+ 3 661 848
+ 55 723 454
+ 27 583 009
- 50 520 003
- 91 720 954
+ 60 917
- 4 825
- 1 537 254
+ 168 530
- 6 181 219
+ 12 184
+ 8 881 942
- 151 343
+ 546 213
+ 611 613
+ 2 513 814
+ 3 642
+ 3 320 540
+ 3 506 186
+ 5 772 939
+ 7 018 133
0 

+ 5 025 912 
+ 489 243 
+ 1 177 440 
- 9 197 734 
+ 39 179 773 
- 69 352 
+ 2 623 764 
+ 65 528 142 
+ 22 584 489 
- 22 588 521 
- 94 910 109 
+ 107 925 
+ 1 017 474 
- 725 966 
- 281 514 
- 6 699 387 
+ 128 050 
+ 10 720 377 
- 499 052 
+ 8 677 483 
+ 1 266 237 
+ 6 495 846 
+ 1 562 004 
+ 4 478 030 
+ 4 653 367 
+ 6 038 398 
- 46 782 319 
0 

EN 

 
  
 
 
  
3.3. 

Revision of the financing of the gross reductions in GNI payments of Sweden and the 
Netherlands in 2010 

The  gross  reductions  in  the  GNI  payments  of  the  Netherlands  and  Sweden  for  2010  were 
established  in  Budget  2010.  The  amounts  were  adjusted  to  current  prices  by  applying  the  GDP 
deflator for the EU expressed in Euro, as provided by the Commission in the 2009 Spring Economic 
Forecast, i.e. that were available when the preliminary draft budget 2010 was drawn up. The gross 
amounts are EUR 651.4 million for the Netherlands and EUR 161.5 million for Sweden and they do 
not and will not change.11 

The  reductions  are  to  be  financed  by  all  Member  States  according  to  the  shares  in  GNI.  The 
financing is therefore modified according to the update of the GNI bases for 2010 as agreed during 
the 148th ACOR Forecast meeting on 18 May 2010.  

The following table provides an overview of the financing of the gross reductions for 2010: 

Reductions in 2010 GNI payments of the 
Netherlands and Sweden 
23 602 839 
LU 
2 226 003 
HU 
8 860 084  MT 
15 926 977 
NL 
167 822 128 
AT 
885 244 
PL 
8 634 417 
PT 
15 595 850 
RO 
69 432 028 
SI 
133 363 878 
SK 
103 115 739 
FI 
1 132 305 
SE 
1 172 545 
UK 
1 772 505  Total 

1 854 865 
6 279 611 
370 693 
- 612 147 160 
18 867 213 
22 390 189 
10 784 513 
7 905 371 
2 324 155 
4 373 165 
11 842 488 
- 140 323 242 
111 935 597 
0 

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

11 

According  to  Article  2(5)  of  the  Council  Decision  2007/436/EC,  Euratom  the  amounts  are  adjusted  to  the 
current  prices  by  applying  the  most  recent  GDP  deflator  for  the  EU  expressed  in  euro,  as  provided  by  the 
Commission, which is available when the preliminary draft budget is drawn up. 

EN 

16 

   EN