COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT Technical adjustment of the financial framework for 2013 in line with movements in GNI
Date: 2012-04-20
Institutions: European Commission
Subjects: budgetary procedure, financial year, general budget (EU), national income, nuclear research, price fluctuation, research programme, supplementary financing

EUROPEAN COMMISSION 

Brussels, 20.4.2012  
COM(2012) 184 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE 
EUROPEAN PARLIAMENT 

Technical adjustment of the financial framework for 2013 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 COUNCIL AND THE 
EUROPEAN PARLIAMENT 

Technical adjustment of the financial framework for 2013 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 2013 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 amended by the 
Decision  of  the  EP  and  of  the  Council  of  13  December  2011  to  address  additional 
financing needs of the ITER project1. 

Table 2 shows the financial framework for EU-27 adjusted for 2013 (i.e. in current 
prices,  unchanged  as  compared  to  the  adjustment  for  additional  financing  needs  of 
the ITER project except that the financial framework expressed in percentage of GNI 
is updated with the latest economic forecasts available). 

1 

Decision  of  the  European  Parliament  and  of  the  Council  of  13  December  2011  amending  the 
Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management 
as  regards  the  multiannual  financial  framework,  to  address  additional  financing  needs  of  the  ITER 
project (2012/5/EU), OJ L 4, 7.1.2012, p. 12. 

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2.1. 

Total figure for GNI 

According  to  the  latest  forecast  available,  the  GNI  for  2013  is  established  at 
EUR 13 299 204 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 12 893 056 
million for 2012, 12 617 848 million for 2011, at EUR 12 257 075 million for 2010, 
at  EUR 11 643 643 million  for  2009,  at  EUR 12 316 757 million  for  2008  and  at 
EUR 12 262 940 million for 2007). 

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 purposes2 from 1 January 2010 onwards. 

2.2.  Main results of the technical adjustment of the Financial Framework for 2013 

(EU-27) 

The  overall  ceiling  on  commitment  appropriations  for  2013  (EUR 152 502 million) 
equals 1.15 % of GNI. 

the  payment  appropriations 
The  corresponding  overall  ceiling  concerning 
(EUR 143 911 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 19 669 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 purposes3. 

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; 

2 

3 

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 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. 

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  2013  the  amount  to  be  deducted  is 
EUR 86.0 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 264.1 million in 2013 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 
2011-2012, which may be carried over to year 2013; 

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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ANNEX  

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

52 136

41 453

1 645

1 050

595

7 339

7 044

0

2012

57 708

12 677

45 031

51 901

41 047

1 797

1 200

597

7 679

7 274

0

2013

58 696

13 073

45 623

51 284

40 645

1 988

1 390

598

8 029

7 610

0

Total
2007-2013
388 538

79 653

308 885

366 229

293 105

10 765

6 625

4 140

49 463

49 194

800

TOTAL COMMITMENT APPROPRIATIONS

117 277

122 683

122 022

125 184

123 857

126 359

127 607

864 989

as a percentage of GNI

1.08%

1.09%

1.06%

1.06%

1.03%

1.03%

1.01%

1.049%

TOTAL PAYMENT APPROPRIATIONS

115 142

119 805

109 091

119 245

116 394

120 649

120 418

820 744

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%

0.96%

0.27%

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 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

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

59 888

47 617

1 889

1 206

683

8 430

8 091

0

(EUR million - current prices)

2013

70 147

15 623

54 524

61 289

48 574

2 376

1 661

715

9 595

9 095

0

Total
2007-2013
438 618

90 203

348 415

412 611

330 085

12 216

7 549

4 667

55 935

55 535

862

2012

67 614

14 853

52 761

60 810

48 093

2 105

1 406

699

8 997

8 523

0

TOTAL COMMITMENT APPROPRIATIONS

124 457

132 797

134 722

140 978

142 272

148 049

152 502

975 777

as a percentage of GNI

1.02%

1.08%

1.16%

1.18%

1.15%

1.13%

1.15%

1.12%

TOTAL PAYMENT APPROPRIATIONS

122 190

129 681

120 445

134 289

133 700

141 360

143 911

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%

1.08%

0.15%

1.23%

1.08%

0.15%

1.23%

1.08%

0.15%

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

2006

2007

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

C
3 408

P
2 826

C
3 636

P
2 919

2008

2009

2010

2011

2012

2013

C
4 843

P
3 215

C
3 502

P
3 123

C
2 662

P
3 321

C
3 279

P
2 941

C
3 750

P
3 650

C
3 900

P
3 900

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. 

TABLE 3.2 : OWN RESOURCES BY CATEGORY

% of total
Traditional own resources (TOR)
VAT
GNP/GNI
2000-2010: outturns (including the retroactive adjustment in 2002 of 15% of the amounts retained in 2001 as TOR collection costs)
2011: Amending Budget 6/2011 & 2012: Adopted Budget 2012.

2005
14%
16%
70%

2003
13%
26%
61%

2004
13%
15%
72%

2001
18%
39%
43%

2000
17%
40%
43%

2002
12%
29%
59%

2006
15%
17%
69%

2007
15%
18%
67%

2008
16%
17%
67%

2009
13%
12%
75%

2010
13%
10%
76%

2011
14%
12%
74%

2012
15%
11%
73%

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