COMMUNICATION FROM THE COMMISSION  TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Technical adjustment of the financial framework for 2012 in line with movements in GNI   (Point 16 of the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management)
Date: 2011-04-15
Institutions: European Commission
Subjects: budgetary discipline (EU), budgetary procedure, interinstitutional agreement, national income, price fluctuation

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EUROPEAN COMMISSION 

Brussels, 15.4.2011 
COM(2011) 199 final 

COMMUNICATION FROM THE COMMISSION  
TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 

Technical adjustment of the financial framework for 2012 
in line with movements in GNI  

(Point 16 of the Interinstitutional Agreement of 17 May 2006 
on budgetary discipline and sound financial management) 

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COMMUNICATION FROM THE COMMISSION  
TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 

Technical adjustment of the financial framework for 2012 
in line with movements in GNI  

(Point 16 of the Interinstitutional Agreement of 17 May 2006 
on budgetary discipline and sound financial management) 

1. 

INTRODUCTION 

The Interinstitutional Agreement (IIA) of 17 May 2006 on budgetary discipline and 
sound  financial  management  (OJ  C 139/1  of  14/06/2006)  contains  the  financial 
framework  table  for  EU-27  for  the  period  2007-2013,  expressed  in  2004  prices 
(Table 1). 

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 2012 according to Point 16 of the IIA. 

2. 

TERMS  OF  THE  ADJUSTMENT  OF  THE  FINANCIAL  FRAMEWORK 
TABLE (TABLES 1-2) 

Table  1  shows  the  financial  framework  for  EU-27  in  2004  prices  as  modified  in 
accordance with point 17 of the IIA (COM(2010) 160 of 16 April 2010). 

Table 2 shows the financial framework for EU-27 adjusted for 2012 (i.e. in current 
prices,  unchanged  as  compared  to  the  adjustment  for  2011  and  point  17,  see 
COM(2010) 160,  except  that  the  financial  framework  expressed  in  percentage  of 
GNI is updated with the latest economic forecasts available). 

2.1. 

Total figure for GNI 

According  to  the  latest  forecast  available,  the  GNI  for  2012  is  established  at 
EUR 13 114 511 million in current prices for EU-27 (according to the last paragraph 
of  Point  16  no  technical  adjustments  are  made in respect of the current year  or the 
past  ones;  for  information  only,  the  updated  GNI  is  established  at  EUR 
for  2010,  at 
12 650 080 million 

for  2011,  at  EUR  12 218 528  million 

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EUR 11 626 995 million 
EUR 12 243 045 million for 2007). 

for  2009,  EUR 12 312 555 million 

for  2008  and 

For  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. 

Since  2010  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 purposes1 from 1 January 2010 onwards. 

2.2.  Main results of the technical adjustment of the Financial Framework for 2012 

(EU-27) 

The  overall  ceiling  on  commitment  appropriations  for  2012  (EUR 147 546 million) 
equals 1.13 % of GNI. 

The  corresponding  overall  ceiling  concerning 
the  payment  appropriations 
(EUR 141 360 million)  equals  1.08 %  of  GNI.  On  the  basis  of  the  latest  economic 
forecasts,  this  leaves  a  margin  beneath  the  1.23 %  own  resources  ceiling  of 
EUR 19 948 million (0.15 % 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 purposes2. 

3. 

OTHER ELEMENTS LINKED TO THE TECHNICAL ADJUSTMENT 

3.1. 

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 84.0 million at 2012 prices). 

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2 

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. 

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The  recurrent  nature  of  administrative  expenditure  imposes  that  an  average  limit  is 
adopted annually to avoid using a margin at the start of the period which would no 
longer  be  fully  available  afterwards.  For  2012  the  amount  to  be  deducted  is 
EUR 84.0 million at current prices. 

3.2. 

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 258.9 million in 2012 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 
2010-2011, which may be carried over to year 2012; 

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).  

4. 

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 
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. 

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ANNEXES 

TABLE 1: FINANCIAL FRAMEWORK 2007-2013 

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.

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TABLE 2: FINANCIAL FRAMEWORK (EU-27) ADJUSTED FOR 2012 

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%

1.13%

1.12%

1.12%

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%

1.08%

0.15%

1.23%

1.05%

0.18%

1.23%

1.06%

0.17%

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.

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TABLE 3: 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

2012

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
3 636

P
2 919

C
4 843

P
3 215

C
3 502

P
4 100

P
3 919

C
3 750

P
3 123

C
2 662

P
3 321

C
3 750

TABLE 3.2 : OWN RESOURCES BY CATEGORY

% of total
Traditional own resources (TOR)
VAT
GNP/GNI
2000-2009: outturns (including the retroactive adjustment in 2002 of 15% of the amounts retained in 2001 as TOR collection costs)

2007
15%
18%
67%

2001
18%
39%
43%

2002
12%
29%
59%

2000
17%
40%
43%

2003
13%
26%
61%

2004
13%
15%
72%

2005
14%
16%
70%

2006
15%
17%
69%

2008
16%
17%
67%

2009
13%
12%
75%

2010
13%
11%
76%

2011
13%
11%
76%

2010: Amending Budget 6/2010 & 2011: Adopted Budget 2011.

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