COMMUNICATION FROM THE COMMISSION TO THE COUNCIL Financial information on the European Development Fund 
Date: 2015-06-15
Institutions: European Commission
Subjects: European Development Fund, European Investment Bank, Member States' contribution, commitment of expenditure, financial situation, multiannual financial framework



COM_2015_295_814295_EN_ACTE_1_f_1.docx






EUROPEAN COMMISSION
Brussels, 15.6.2015
COM(2015) 295 final
COMMUNICATION FROM THE COMMISSION TO THE COUNCIL
Financial information on the European Development Fund






1.Foreword


The 11th European Development Fund (EDF)
1
 entered into force on 2 March 2015. Nevertheless, in line with Article 63 of the Council Regulation (EU) 2015/323 on the financial regulation applicable to the 11th European Development Fund
2
, the 10th EDF procedure will apply for the second call for contributions of 2015 for all matters related to Member States' contributions covered by those articles. A new procedure will apply for the first time for the first 2016 instalment, as stipulated in Article 63 of Council Regulation (EU) 2015/323.


In accordance with Article 7(3) of the Internal Agreement
3
 and Articles 57(3) and (4) of the 10th EDF Financial Regulation
4
, the Commission presents in this document estimates of commitments, payments and contributions for the period 2015 and 2016, taking into account the forecasts of the European Investment Bank (EIB) concerning the Investment Facility.


This Communication sets out the financial implementation of the EDFs (8th to 10th and the Bridging Facility
5
) for 2014 and the forecasts of financial implementation for 2015 to 2016.


Member States contribute funds directly to the EIB 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.


2.Introduction


The Commission and the EIB have updated their commitment and payment forecasts for 2015 and 2016 for each of the African, Caribbean and Pacific (ACP) countries and the Overseas Countries and Territories (OCTs). The payment forecasts in particular have been compiled with the aim of helping the Member States assess as accurately as possible the amounts they need to earmark in their national budgets and 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 EDF
6
 and Article 57(5) of the Financial Regulation
7
, the estimates provided in this document will be updated in the October 2015 communication.


The graph below shows the general trend in commitments and payments, including projections for 2015 - 2016 (Commission and EIB).



Gross commitments and payments: trend 1999-2016 (EUR millions)
8



Implementation of the European Development Funds at 31 December 2014 (commitments, payments and financial situation).








The attachments 1, 2 and 3 show respectively the actual commitments, payments and financial situation recorded in 2014 compared with the forecasts made in October 2014
9
. 



3.Financial forecasts for 2015 – 2016 (EUR millions)


The following table provides an update of commitments, payments and of contributions, based on our latest forecasts.





Forecasts 2015-2016 (*)




2015




2016






Commitments




Commission




3.552




4.663









EIB




830




850









Total




4.382




5.513






Payments




Commission




3.103




3.468









EIB




430




450









Total




3.533




3.918






Contributions




Commission




3.200




3.350









EIB




200




200









Total




3.400




3.550





* gross amounts, i.e. no decommitments or recoveries/reflows have been deducted. This approach is in line with that used for the general budget of the EU.




4.Non-binding Estimation of contribution for 2017 – 2018 (EUR millions)





Forecasts 2017-2018 (*)




2017




2018






Contributions




Commission




3.450




3.500









EIB




200




170









Total




3.650




3.670





*Art.21 (2) Bridging Facility Financial Regulation (EU567/2014): non-binding forecast based on statistical approach for the expected annual amounts of contributions for the year n+3 and n+4.


5.Financial implementation for 2014 and forecasts for 2015 and 2016


The updated forecasts are set out in Attachments 1 to 3.


Compared with estimates contained in the November 2014 Council Decision
10
, updated forecasts show a decrease of EUR 200 million in Member States' contributions to the Commission's 2015 EDF totals.


The decrease in contributions to be called in 2015 is a consequence of the record level of payments made by the Commission from the EDF in 2014. The extra amount being called by the Commission to cover those extra payments was offset by lower EIB contribution calls and the low commitments made in 2014 under the Bridging Facility.


For 2016 we forecast the ceiling for the Member States contributions will amount to EUR 3.350 million for the Commission and EIB’s is EUR 200 million in total, of which EUR 100 million to be called under the 10th EDF and EUR 100 million under the 11th EDF.


It should be stressed that these figures are a preliminary forecast and must be treated with caution. The Commission and the EIB will make more reliable forecasts after the summer. They will be presented in the October Communication.



Attachment 1: Gross commitments in 2014, forecast 2015 and 2016 (EUR million)








2014




2015




2016






 




COM Oct 2014




actuals 2014




COM Oct 2014




revised June 2015




COM Oct 2014




revised June 2015






Regions




 




 




 




 




 




 






East Africa




60




30




 




625




 




 






West Africa




338




160




 




966




 




 






Central Africa




330




227




 




692




 




 






Caribbean




0




0




 




0




 




 






Pacific




7




3




 




7




 




 






Southern Africa




238




149




 




368




 




 






Sub-total




973




569




 




2.658




 




 






Other




 




 




 




 




 




 






Peace Facility




325




281




 




692




 




 






Water and Energy Facility




0




0




 




0




 




 






Other (*)




315




310




 




201




 




 






Sub-total




640




0




 




893




 




 






Total European Commission




1.613




1.160




4.663




3.552




4.663




4.663






Investment facility




730




532




750




750




800




770






Interest rate subsidies




80




72




80




80




80




80






Total EIB




810




604




830




830




880




850






TOTAL EC+EIB




2.423




1.764




5.493




4.382




5.543




5.513





Gross commitments, i.e. without de-commitments being deducted.

* Includes support expenditures, e.g. to support joint institutions and the ACP Secretariat.


Attachment 2: Gross payments in 2014, forecasts 2015 and 2016 (EUR million)








2014




2015




2016






 




COM Oct 2014




actuals 2014




COM Oct 2014




revised June 2015




COM Oct 2014




revised June 2015






Regions




 




 




 




 




 




 






East Africa




478




495




 




426




 




 






West Africa




894




927




 




761




 




 






Central Africa




425




440




 




334




 




 






Caribbean




205




213




 




209




 




 






Pacific




65




67




 




71




 




 






Southern Africa




391




405




 




389




 




 






Sub-total




2.458




2.548




 




2.191




 




 






Other 




 







 




 




 




 






Peace Facility




363




385




 




373




 




 






Water and Energy Facility




71




72




 




71




 




 






Other (*)




557




576




 




468




 




 






Sub-total




991




1.033




 




912




 




 






Total European Commission




3.449




3.581




3.400




3.103




3.468




3.468






Investment facility




330




290




390




350




420




370






Interest rate subsidies




80




72




80




80




80




80






Total  EIB




410




362




470




430




500




450






TOTAL EC+EIB




3.859




3.943




3.870




3.533




3.968




3.918





Gross commitments, i.e. without de-commitments being deducted.

* Includes support expenditures, e.g. to support joint institutions and the ACP Secretariat.


Attachment 3: Financial situation for 2014, forecasts for 2015 and 2016 and non-binding estimations for 2017 and 2018 (EUR million)











COM October 2014 1




Revision June 2015












Commission




EIB




TOTAL




Commission




EIB




EIB-IFE 6




TOTAL






 




Balance 31/12/2013 1




655




224




879




655




224




 




879






2014




Member States Contributions for 2014:




3.144




106




3.250




3.144




106




 




3.250









     1st instalment




2.000




 




2.000




2.000




 




 




2.000









     2nd instalment




850




106




956




850




106




 




956









     3rd instalment




294




0




294




294




 




 




294









Contributions 2014 received in 2013




-304




 




-304




-304




 




 




-304









Contributions 2015 received in 2014




 




 




 




228




 




 




228









Reflows 2




 




250




250




 




226




 




226









Recoveries, interest and other




100




 




100




65




 




 




65









Total payments 3




-3.449




-410




-3.859




-3.581




-362




 




-3.943









Balance 31/12/2014 4




146




170




316




207




194




0




401






2015




Member States Contributions for 2015:




3.400




200




3.600




3.200




200




 




3.400









     1st instalment




1.500




50




1.550




1.500




50




 




1.550









     2nd instalment




1.050




100




1.150




850




100




 




950









     3rd instalment




850




50




900




850




50




 




900









Reflows 2




 




200




200




 




250




 




250









Contributions 2015 received in 2014




 




 




 




-228




 




 




-228









Recoveries, interest and other




100




 




100




100




 




 




100









Total payments 3




-3.400




-470




-3.870




-3.103




-385




-45




-3.533









Balance at 31/12/2015




246




100




346




176




259




-45




390






2016




Member States Contributions for 2016:




3.350




250




3.600




3.350




100




100




3.550









Reflows 2




 




200




200




 




220




 




220









Recoveries, interest and other




100




 




100




100




 




 




100









Total payments 3




-3.468




-500




-3.968




-3.468




-400




-50




-3.918









Balance at 31/12/2016




228




50




278




158




179




5




342






2017




Member States Contributions for 2017 5




3.450




200




3.650




3.450




140




60




3.650






2018




Member States Contributions for 2018 5




3.500




170




3.670




3.500




100




70




3.670





1
   Funds available for operations,
2
    Net of EIB management fees
3
    Including interest rates subsidies under the previous EDFs
4
   These balances do not include: (i) Cofinancings received by 31.12.2014, (ii) Receipts in bank not yet allocated to its specific EDF line, (iii) Special fund for DRC
5
   Art.21 (2) FR: indicative, non-binding forecast based on a statistical approach for the expected annual amounts of contributions for the years n + 3 and n + 4.
6
   MD no. 041/15 ACP of 23/04/2015 - Note to the Members of the ACP Working Party: (…). Given the particularity of the IFE. (Impact Financing Envelope, EUR 500m allocated) and Member States' explicitly request for having it ring-fenced under the IFE, the Bank will start with calling funds also from the 11th EDF in 2016 in order to be able to properly allocate MS contribution to the IFE.

Attachment 4: Forecasted Member States contributions 2015 (EUR)





MEMBER STATES




Key 10th EDF %




1st instalment




2nd instalment




3rd instalment




Total EIB




Total Commission




Total 2015












EIB 10th EDF




Commission 10th EDF




EIB 10th EDF




Commission 10th EDF




EIB 10th EDF




Commission 10th EDF


















































AUSTRIA




2,41




1.205.000




36.150.000




2.410.000




20.485.000




1.205.000




20.485.000




4.820.000




77.120.000




81.940.000






BELGIUM




3,53




1.765.000




52.950.000




3.530.000




30.005.000




1.765.000




30.005.000




7.060.000




112.960.000




120.020.000






BULGARIA




0,14




70.000




2.100.000




140.000




1.190.000




70.000




1.190.000




280.000




4.480.000




4.760.000






CYPRUS




0,09




45.000




1.350.000




90.000




765.000




45.000




765.000




180.000




2.880.000




3.060.000






CZECH REPUBLIC




0,51




255.000




7.650.000




510.000




4.335.000




255.000




4.335.000




1.020.000




16.320.000




17.340.000






DENMARK




2,00




1.000.000




30.000.000




2.000.000




17.000.000




1.000.000




17.000.000




4.000.000




64.000.000




68.000.000






ESTONIA




0,05




25.000




750.000




50.000




425.000




25.000




425.000




100.000




1.600.000




1.700.000






FINLAND




1,47




735.000




22.050.000




1.470.000




12.495.000




735.000




12.495.000




2.940.000




47.040.000




49.980.000






FRANCE




19,55




9.775.000




293.250.000




19.550.000




166.175.000




9.775.000




166.175.000




39.100.000




625.600.000




664.700.000






GERMANY




20,50




10.250.000




307.500.000




20.500.000




174.250.000




10.250.000




174.250.000




41.000.000




656.000.000




697.000.000






GREECE




1,47




735.000




22.050.000




1.470.000




12.495.000




735.000




12.495.000




2.940.000




47.040.000




49.980.000






HUNGARY




0,55




275.000




8.250.000




550.000




4.675.000




275.000




4.675.000




1.100.000




17.600.000




18.700.000






IRELAND




0,91




455.000




13.650.000




910.000




7.735.000




455.000




7.735.000




1.820.000




29.120.000




30.940.000






ITALY




12,86




6.430.000




192.900.000




12.860.000




109.310.000




6.430.000




109.310.000




25.720.000




411.520.000




437.240.000






LATVIA




0,07




35.000




1.050.000




70.000




595.000




35.000




595.000




140.000




2.240.000




2.380.000






LITHUANIA




0,12




60.000




1.800.000




120.000




1.020.000




60.000




1.020.000




240.000




3.840.000




4.080.000






LUXEMBOURG




0,27




135.000




4.050.000




270.000




2.295.000




135.000




2.295.000




540.000




8.640.000




9.180.000






MALTA




0,03




15.000




450.000




30.000




255.000




15.000




255.000




60.000




960.000




1.020.000






NETHERLANDS




4,85




2.425.000




72.750.000




4.850.000




41.225.000




2.425.000




41.225.000




9.700.000




155.200.000




164.900.000






POLAND




1,30




650.000




19.500.000




1.300.000




11.050.000




650.000




11.050.000




2.600.000




41.600.000




44.200.000






PORTUGAL




1,15




575.000




17.250.000




1.150.000




9.775.000




575.000




9.775.000




2.300.000




36.800.000




39.100.000






ROMANIA




0,37




185.000




5.550.000




370.000




3.145.000




185.000




3.145.000




740.000




11.840.000




12.580.000






SLOVAKIA




0,21




105.000




3.150.000




210.000




1.785.000




105.000




1.785.000




420.000




6.720.000




7.140.000






SLOVENIA




0,18




90.000




2.700.000




180.000




1.530.000




90.000




1.530.000




360.000




5.760.000




6.120.000






SPAIN




7,85




3.925.000




117.750.000




7.850.000




66.725.000




3.925.000




66.725.000




15.700.000




251.200.000




266.900.000






SWEDEN




2,74




1.370.000




41.100.000




2.740.000




23.290.000




1.370.000




23.290.000




5.480.000




87.680.000




93.160.000






UNITED KINGDOM




14,82




7.410.000




222.300.000




14.820.000




125.970.000




7.410.000




125.970.000




29.640.000




474.240.000




503.880.000






TOTAL EU-27




100,00




50.000.000




1.500.000.000




100.000.000




850.000.000




50.000.000




850.000.000




200.000.000




3.200.000.000




3.400.000.000












(1)
 OJ L 210, 6.8.2013, 11th EDF 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 2014 to 2020 in accordance with the ACP-EU Partnership Agreement and on the allocation of financial assistance for the Overseas Countries and Territories to which Part Four of the European Union applies,



(2)
 OJ L 58, Council Regulation (EU) 2015/323 of 2 March 2015 on the financial regulation applicable to the 11th European Development Fund,



(3)
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.



(4)
Council Regulation (EC) No 215/2008 of 18 February 2008 on the Financial Regulation applicable to the 10th European Development Fund.



(5)
 Council decision (EU) 2013/795



(6)
OJ L 247, 9.9.2006, p. 32, on the financial regulation applicable to the 10th European Development Fund



(7)
Council Regulation (EC) 215/2008 of 18 February 2008 on the Financial Regulation applicable to the 10th European Development Fund.



(8)
For 2015-2016, forecasted amounts



(9)
2014/0298 (NLE).



(10)
 Council ref. 14563/14 – Decision from 10 November 2014.