DRAFT AMENDING BUDGET No 4 TO THE GENERAL BUDGET 2016 Update of appropriations to reflect the latest developments on migration and security issues, reduction of payment and commitment appropriations as a result of the Global Transfer, extension of EFSI, modification of the staff establishment plan of Frontex and update of revenue appropriations (Own resources)
Date: 2016-09-30
Institutions: Directorate-General for Budget, European Commission
Subjects: EU expenditure, EU investment, Frontex, aid to refugees, amending budget, draft budget, financial year, general budget (EU), public safety

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 30.9.2016 COM(2016) 623 final   DRAFT AMENDING BUDGET No 4 TO THE GENERAL BUDGET 2016 Update of appropriations to reflect the latest developments on migration and security issues, reduction of payment and commitment appropriations as a result of the Global Transfer, extension of EFSI, modification of the staff establishment plan of Frontex and update of revenue appropriations (Own resources)  
 
 
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, 

Regulation  (EU,  Euratom)  No  966/2012  of  the  European  Parliament  and  of  the 
Council of 25 October 2012 on the financial rules applicable to the general budget of 
the Union1, and in particular Article 41 thereof, 

the general budget of the European Union for the financial year 2016, as adopted on 
25 November 20152, 
Amending budget No 1/20163, adopted on 14 April 2016, 
Amending budget No 2/20164, adopted on 6 July 2016, 
Draft amending budget No 3/20165, adopted on 30 June 2016, 

The European Commission hereby presents Draft amending budget No 4 to the 2016 budget 
to the European Parliament and to the Council. 

CHANGES  TO  THE  STATEMENT  OF  REVENUE  AND  EXPENDITURE  BY 
SECTION 

The  changes  to  the  statement  of  revenue  and  expenditure  by  section  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. 

1 
2 
3  
4  
5  

OJ L 298, 26.10.2012, p. 1. 
OJ L 48, 24.2.2016, p. 1. 
OJ L 143, 31.5.2016, p. 1. 
OJ L 248, 15.9.2016, p. 1. 
COM(2016) 227 final, 30.6.2016. 

2 

 
 
  
 
                                                 
TABLE OF CONTENTS 

1. 

INTRODUCTION ................................................................................................................................... 4 

2.  
UPDATE OF APPROPRIATIONS UNDER HEADING 3 FURTHER TO THE LATEST 
DEVELOPMENTS IN RELATION TO MIGRATION AND SECURITY ISSUES ...................................... 5 

2.1   INSTRUMENT FOR EMERGENCY SUPPORT WITHIN THE UNION .................................................................... 5 
2.2   ASYLUM, MIGRATION AND INTEGRATION FUND (AMIF) .......................................................................... 5 
2.3 
INTERNAL SECURITY FUND (ISF) .............................................................................................................. 6 
2.4  MOBILISATION OF THE CONTINGENCY MARGIN FOR COMMITMENTS ......................................................... 6 

3. 

4. 

PROVISIONING OF THE EFSI GUARANTEE FUND: UPDATED PROFILE ............................ 6 

OTHER FINE-TUNING IN COMMITMENT APPROPRIATIONS ................................................ 7 

5. 
DECREASE OF PAYMENT APPROPRIATIONS AS A RESULT OF THE ANNUAL GLOBAL 
TRANSFER EXERCISE ...................................................................................................................................... 7 

5.1  HEADING 1B – ECONOMIC, SOCIAL AND TERRITORIAL COHESION .............................................................. 8 
5.2  HEADING 2 – SUSTAINABLE GROWTH: NATURAL RESOURCES ................................................................... 8 
5.3  HEADING 3 – SECURITY & CITIZENSHIP..................................................................................................... 9 
5.4  EMERGENCY AID RESERVE (EAR) .......................................................................................................... 10 

6. 

7. 

8. 

MODIFICATION OF THE ESTABLISHMENT PLAN OF FRONTEX ....................................... 10 

SUMMARY TABLE BY MFF HEADING ......................................................................................... 10 

UPDATE OF REVENUE APPROPRIATIONS ................................................................................ 11 

8.1  OVERALL IMPACT OF DAB 4/2016 ON THE DISTRIBUTION OF TOTAL OWN RESOURCES PAYMENTS 

BETWEEN MEMBER STATES ..................................................................................................................... 11 
8.2  REVISION OF THE FORECAST OF TOR, VAT AND GNI BASES .................................................................. 13 
8.3  2015, 2014 AND 2012 UK CORRECTION ................................................................................................... 15 
8.4  FINES ....................................................................................................................................................... 19 

3 

 
 
  
 
 
 
 
1. 

INTRODUCTION 

The purpose of Draft Amending Budget (DAB) No 4 for the year 2016 is the following: 

1.  To update the level of appropriations under heading 3 Security and Citizenship to take account of 
the  state  of  implementation  and  to  reflect  the  latest  developments  in  relation  to  migration  and 
security  issues,  with  an  increase  of  EUR 50 million  in  commitment  appropriations  and 
EUR 10 million  in  payment  appropriations  for  the  emergency  support  instrument  within  the 
Union, a EUR 130 million increase in commitment appropriations for the Asylum, Migration and 
Integration  Fund  (AMIF),  and  a  EUR 70 million  increase  in  commitment  appropriations  for  the 
Internal Security Fund (ISF); 

Given  the  absence  of  any  margin  in  heading  3,  these  increases  in  commitment  appropriations 
require the mobilisation of the Contingency Margin for a total amount of EUR 240,1 million, after 
taking  into  account  the  redeployment  of  EUR 9,9 million  from  the  European  Medicines  Agency 
(EMA)  in  London,  as  a  result  of  changes  in  the  EUR/GBP  exchange  rate.  The  Commission 
proposed  to  fully  offset  this  mobilisation  in  2016  against  the  unallocated  margins  of  heading 
5 Administration in 2016. 

2.  To frontload the provisioning of the European Fund for Strategic Investments (EFSI) 2015-2018 
with  an  increase  of  EUR 73,9 million  in  commitment  appropriations,  to  take  account  of  the 
proposed extension of the duration of the Fund until 20206. It is proposed to finance the increase 
by  reducing  the  appropriations  of  the  financial  instruments  under  the  energy  strand  of  the 
Connecting Europe Facility (CEF-Energy), with a corresponding compensation  in 2018.  

3.  To  reduce  commitment  appropriations  spread  across  several  budget  lines,  under  heading  2 
Sustainable Growth: natural resources,  by  EUR 14,7 million,  to  adjust  them  to  the  latest  needs 
assessment. 

4.  To decrease the level of payment appropriations by EUR 7 284,3 million, mostly in budget lines 
under  heading  1b Economic, social and territorial cohesion  and  to  a  lesser  extent  for  headings 
2 Sustainable Growth: natural resources  and  3 Security and Citizenship  as  well  as  from  the 
Emergency  Aid  Reserve,  after  taking  into  account  the  redeployments  proposed  in  the  Global 
Transfer (DEC 23/2016). 

5.  To frontload in 2016 part of the reinforcement in the staffing levels of Frontex already proposed in 
the draft budget 2017, in view of the forthcoming entry into force of the new European Border and 
Coast Guard Regulation. This entails an amendment to the establishment plan of Frontex with no 
additional appropriations in 2016.  

Overall, the net impact of DAB 4/2014 on the expenditure side of the 2016 budget is an increase of 
EUR 225,4 million in commitment appropriations and a decrease of EUR 7 274,3 million in payment 
appropriations. 

On the revenue side, the present  DAB also includes  the  revision of the forecast of Traditional  Own 
Resources  (i.e.  customs  duties  and  sugar  sector  levies),  value-added  tax  (VAT)  and  gross  national 
income  (GNI)  bases,  and  the  budgeting  of  the  relevant  UK  corrections  and  their  financing,  which 
affects the distribution of own resources contributions from Member States to the EU budget. 

6  

COM(2016) 597 final, 14.9.2016. 

4 

 
 
  
 
                                                 
2.  

UPDATE OF APPROPRIATIONS UNDER HEADING 3 FURTHER TO THE LATEST DEVELOPMENTS 
IN RELATION TO MIGRATION AND SECURITY ISSUES 

Instrument for emergency support within the Union 

2.1  
The new instrument for emergency support within the Union was created in March 20167, to provide 
financial support to Member States facing an exceptional situation going beyond their organisational 
capacity, where large numbers of people require urgent humanitarian assistance. 
In the legislative financial statement accompanying the Commission proposal8, the funding needs for 
the  new  instrument  in  2016  were  estimated  at  EUR 300 million  in  commitment  appropriations. 
EUR 199 million  have  already  been  made  available:  a  first  tranche  of  EUR 100 million  in  the 
amending  budget  1/2016  adopted  in  April  20169,  followed  by  a  further  EUR 99 million  through  an 
internal transfer in August 2016.  

The  first  tranche  of  EUR 100 million  in  commitment  appropriations  was  fully  contracted  in  August 
2016  and  75  %  of  the  second  tranche  is  expected  to  be  contracted  by  the  end  of  September.  That 
leaves only EUR 25 million available for the final quarter of the year, which would be insufficient in 
case of any sudden change in migration flows. 

The Commission proposes to budget an additional EUR 50 million in commitment appropriations and 
EUR 10 million in payment appropriations. These additional appropriations will allow the funding of 
measures  currently  implemented  on  the  ground  under  the  emergency  support  instrument,  while  also 
keeping some room for manoeuvre to respond to possible new developments until year-end. 

Budget line 

18 01 04 05 
18 07 01 
Total 

Name 

Support expenditure for Emergency support within the Union 

Emergency support within the Union 

Commitment 
appropriations 

Payment 
appropriations 

500 000 
49 500 000 
50 000 000 

500 000 
9 500 000 
10 000 000 

2.2  

Asylum, Migration and Integration Fund (AMIF) 

The first two tranches for the new instrument for emergency support within the Union mentioned in 
the  previous  section  were  both  made  available  from  the  Asylum,  Migration  and  Integration  Fund 
(AMIF). 

The  updated  needs  assessment  for  AMIF  in  2016  has  confirmed  that  the  currently  available 
commitment appropriations (amounting to some EUR 209 million) will be fully implemented by the 
year-end, notably in the form of a series of requests or emergency assistance which are currently being 
processed or forthcoming. The funding will in particular provide support to strengthen asylum systems 
and reception capacities in Member States. 

Taking  into  account  the  current  state  of  play  regarding  the  implementation  of  the  two  Council 
Decisions  on  the  relocation  of  refugees10,  the  expected  adoption  in  October  2016  of  the  proposed 
amendment to the second Council Decision entailing an additional pledge for the resettlement of up to 
54  000  persons11,  and  the  on-going  pressure  on  the  external  borders  of  the  EU,  the  Commission's 
assessment  is  that  the  partial  replenishment  of  AMIF  by  EUR 130 million  in  commitment 
appropriations is necessary to enable it to respond to other possible legitimate demands in this volatile 
area in the final quarter of 2016. 

Budget line 

Name 

Commitment 

7  
8  
9  
10  
11  

OJ L 70, 16.3.2016, p. 1. 
COM(2016) 115, 2.3.2016. 
OJ L 143, 31.5.2016. 
OJ L 239, 15.9.2015, p. 146 and OJ L 248, 24.9.2015, p. 80. 
COM(2016) 171, 21.3.2016. 

5 

 
 
  
 
 
                                                 
18 03 01 01 

Strengthening  and  developing  the  common  European  asylum  system  and  enhancing  solidarity  and 
responsibility-sharing between the Member States 

Total 

appropriations 

130 000 000 

130 000 000 

2.3 

Internal Security Fund (ISF) 

The Commission proposes to combine the partial replenishment of AMIF (EUR 130 million) with a 
reinforcement of the Borders strand of the Internal Security Fund (ISF-Borders) by EUR 70 million in 
commitment appropriations, in order to respond to pending and forthcoming requests for  emergency 
assistance,  notably  from  Bulgaria.  This  takes  account  of  the  fact  that  the  ISF  emergency  assistance 
currently available in the 2016 budget has been almost fully used. 

Budget line 

18 02 01 01 
Total 

Support of border management and a common visa policy to facilitate legitimate travel 

Name 

Commitment 
appropriations 

70 000 000 
70 000 000 

2.4 

Mobilisation of the Contingency Margin for commitments 

The  commitment  appropriations  authorised  for  heading  3  in  the  2016  budget  exceeds  the 
corresponding  expenditure  ceiling and  already  required,  together  with  heading  4 Global Europe,  the 
full mobilisation (EUR 1 530 million) of the Flexibility Instrument, in accordance with Article 11(2) 
of the MFF Regulation. 

Consequently, the mobilisation of the Contingency Margin in 2016 is the only instrument available to 
address the additional needs described above for heading 3. Taking into account EUR 9,9 million in 
commitment  appropriations  available  for  redeployment  from  the  European  Medicines  Agency,  the 
Commission proposes to mobilise the Contingency Margin12 for an amount of EUR 240,1 million to 
be fully offset in 2016 against the unallocated margins in heading 5, without pre-empting the room for 
manoeuvre of future years. 

Budget line 

17 03 12 01 
Total 

Union contribution to the European Medicines Agency 

Name 

Commitment 
appropriations 

-9 900 000 
-9 900 000 

PROVISIONING OF THE EFSI GUARANTEE FUND: UPDATED PROFILE 

3. 
The  Commission  proposal13  to  extend  the  duration  of  the  European  Fund  for  Strategic  Investments 
(EFSI) until 2020 entails an update of the commitment profile set out in the financial programming:  
the  Commission  proposes  to  front-load  EUR 73,9 million  in  2016  for  the  provisioning  of  the  EFSI 
Guarantee Fund (budget article 01 04 05), by transferring this amount from the financial instruments 
under the energy strand of the Connecting Europe Facility (budget item 32 02 01 04). 

The amount to be frontloaded to EFSI in 2016 will be returned to CEF-Energy in 2018. There is no 
need to amend the related payment appropriations. 

Budget line 

01 04 05 
32 02 01 04 
Total 

Provisioning of the EFSI guarantee fund 

Creating an environment more conducive to private investment for energy projects 

Name 

Commitment 
appropriations 

73 908 000 
-73 908 000 
0 

12  
13  

COM(2016) 624, 30.9.2016. 
COM(2016) 597, 14.9.2016. 

6 

 
 
  
 
 
 
 
 
                                                 
4. 

OTHER FINE-TUNING IN COMMITMENT APPROPRIATIONS  

Following  a  detailed  analysis  of  needs,  the  Commission  proposes  to  reduce  commitment 
appropriations by EUR 14,7 million across seven budget lines:  

 

 

 

 

 

 

EUR 1,3 million  for  the  European  Agricultural  Guarantee  Fund  (EAGF)  further  to  the 
cancellation of a few measures financed by differentiated appropriations. 

EUR 1,4 million for pilot projects as further analysis revealed that two of those included in the 
2016 Budget will not be implemented as they fall under the scope of ongoing initiatives under 
Horizon 2020 (Blue growth, and in particular call topic BG-14-2017 'Monitoring and assessing 
fish  stocks,  other  pelagic  species  and  habitats  with  an  automated,  non-invasive,  opto-acoustic 
system'). 
heading 
1a Competitiveness for growth and jobs,  the  commitment  appropriations  released  may  not  be 
transferred from heading 2 in which they were recorded. 

available 

absence 

margin 

Given 

under 

the 

of 

EUR 0,4 million for the contribution of the European Maritime and Fisheries Fund (EMFF) to 
the  executive  agency  for  Small  and  Medium-sized  Entreprises  (EASME)  mostly  due  to  the 
reduction  of  the  administrative  budget  of  the  agency  (slower  pace  of  recruitment,  savings  in 
buildings  and  IT  expenditure).  The  same  amount  is  reduced  in  payment  appropriations  (see 
section 5.2.1 below).  

EUR 5 million for the EMFF under direct management following the cancellation of the action 
"Chartering/purchase  of  control  vessels,  aircrafts  and  helicopters  for  control"  in  2016.  An 
amount is also reduced in payment appropriations (see section 5.2.1 below). 

EUR 2,9 million  for  the  contribution  from  the  EU  budget  to  the  Biocides  activities  of  the 
European  Chemicals  Agency  (ECHA)  in  Helsinki.  Fee  income  from  industry  has  been  higher 
than expected, reducing accordingly the need in 2016 for the balancing contribution. The same 
amount is reduced in payment appropriations (see section 5.2.3 below). 

EUR 3,8 million  for  the  Sustainable  Fisheries  Partnership  Agreements  to  reflect  the  status  of 
negotiations  and  the  evaluation  of  the  possible  dates  of  entry  into  force.  An  amount  is  also 
reduced in payment appropriations (see section 5.2 below). 

Budget line 

05 08 03 
08 02 77 07 

08 02 77 08 

11 01 06 01 

11 06 62 02 
17 04 07 
40 02 41 
Total 

Name 

Restructuring of systems for agricultural surveys 

Pilot  project  —  Optimisation  of  non-invasive  opto-acoustic  in  situ  underwater  fish  detection  using  a 
UFO  pre-prototype  to  foster  EEA  based  stock  assessments  and  a  better  Marine  Strategy  Framework 
Directive (MFSD) implementation 
Pilot  project  —  Developing  an  Automated  Non-Invasive  Opto-Acoustic  UFO  Test  Array  System  to 
Support  Monitoring  of  Fish  Biodiversity  and  Other  Maritime  Strategy  Framework  Directive  (MFSD) 
Indicators in Marine Key Areas 
Executive  Agency  for  Small  and  Medium-sized  Enterprises  —  Contribution  from  European  Maritime 
and Fisheries Fund (EMFF) 
Control and enforcement 

European Chemicals Agency — Activities in the field of biocides legislation 

Reserve for Sustainable Fisheries Partnership Agreements 

Commitment 
appropriations 

-1 250 000 
-200 000 

-1 200 000 

-370 000 

-5 000 000 
-2 870 000 
-3 830 000 
-14 720 000 

5. 

DECREASE OF PAYMENT APPROPRIATIONS AS A RESULT OF THE ANNUAL GLOBAL TRANSFER 
EXERCISE 

The  Commission  proposes  to  adjust  the  level  of  payment  appropriations  for  certain  budget  lines  in 
order to align them more closely to the latest estimates of needs and working on the assumption that 
the  rebalancing  of  payment  appropriations  between  budget  lines  requested  separately  by  the 
Commission in the so-called "Global Transfer" will be accepted by the European Parliament and the 
Council (DEC 23/2016). 

7 

 
 
  
 
 
The overall reduction (EUR 7 286,8 million) in the level of payment appropriations requested in this 
DAB mainly concerns heading 1b and to a lesser extent headings 2 and 3 as  well as the Emergency 
Aid Reserve. 

Heading 1b – Economic, social and territorial cohesion 

5.1 
The  Commission  proposes  a  decrease  of  EUR 6 956 million14  in  payment  appropriations  for  the 
European Structural and Investment funds (ESIF) under heading 1b. This reduction results from lower 
payment  needs  than  those  foreseen  in  the  2016  Budget  for  both  the  2007-2013  and  2014-2020 
programming periods. 

The  2016  budget  payment  needs  covering  the  2007-2013  programmes  were  estimated  based  on  an 
expected  end-2015  backlog  of  EUR 20 billion.  However,  the  actual  submission  of  payment  claims 
was  significantly  lower  than  expected,  leading  to  an  end-2015  backlog  of  only  EUR 8 billion.  The 
revised  payment  forecasts,  as  submitted  by  Member  States  in  July,  largely  confirmed  the  January 
forecasts.  The  objective  of  fully  phasing  out  the  so-called  “abnormal”  backlog  by  end-2016  will  be 
reached  and  the  “normal”  backlog  will  mostly  consist  of  the  last  suspensions,  not  yet  lifted  before 
closure. After analysing the data submitted by Member States and taking into account past experience 
regarding the concentration of invoices towards the end of the year, a reduction of EUR 3 041 million 
in payment appropriations is proposed for the 2007-2013 programmes. 

All  Operational  Programmes  for  the  2014-2020  programming  period  are  adopted.  However,  the 
overall  level  of  interim  payments  for  these  programmes  will  be  lower  than  initially  foreseen,  as 
confirmed  by  the  latest  Member  States'  forecasts  (13 %  lower  than  the  January  forecasts  and  27 % 
lower  than  the  July  2015  forecasts).  After  taking  into  account  the  recurrent  over-estimation  by 
Member States and the delayed timetable for the designation of national authorities (only 48 % have 
currently  been  notified  to  the  Commission),  a  reduction  of  EUR 3 915 million  in  payment 
appropriations is proposed. 

Budget line 

Name 

04 02 17 
04 02 60 
04 02 61 
04 02 62 
13 03 16 
13 03 18 

13 03 19 
13 03 60 

13 03 61 

13 03 62 

13 03 63 

Total 

Completion of the European Social Fund — Convergence (2007 to 2013) 

European Social Fund — Less developed regions - Investment for growth and jobs goal 

European Social Fund — Transition regions- Investment for growth and jobs goal 

European Social Fund — More developed regions - Investment for growth and jobs goal 

Completion of European Regional Development Fund (ERDF) — Convergence 

Completion  of  European  Regional  Development  Fund  (ERDF)  —  Regional  competitiveness  and 
employment 
Completion of European Regional Development Fund (ERDF) — European  territorial cooperation 

European Regional Development Fund (ERDF) — Less developed regions - Investment for growth and 
jobs goal 
European Regional Development Fund (ERDF) — Transition regions - Investment for growth and jobs 
goal 
European Regional Development Fund (ERDF) — More developed regions - Investment for growth and 
jobs goal 
European  Regional  Development  Fund  (ERDF)  —  Additional  allocation  for  outermost  and  sparsely 
populated regions - Investment for growth and jobs goal 

Payment 
appropriations 

-645 000 000 
-528 000 000 
-192 000 000 
-480 000 000 
-1 072 000 000 
-1 097 000 000 

-227 000 000 
-1 069 000 000 

-636 000 000 

-1 000 000 000  

-10 000 000 

-6 956 000 000 

5.2 

Heading 2 – Sustainable Growth: Natural resources 

5.2.1   European Maritime and Fisheries Fund (EMFF) 

For  the  EMFF,  the  Commission  proposes  a  EUR 118 million  decrease  in  payment  appropriations 
under shared management and EUR 21 million under direct management.  

14  

Another EUR 254 million were used in the Global Transfer. 

8 

 
 
  
 
 
                                                 
Concerning the EMFF under shared management (budget article 11 06 60), the reduction results from 
the downwards revision in the forecasts submitted by Member States at the end of July (also adjusting 
for historical recurrent over-estimation) and the delayed timetable for the designation of the national 
authorities for 20 Member States. 

As  regards  the  EMFF  under  direct  management  (budget  article  11 06 61  and  budget  item 
11 06 62 02), the extensions of the duration for a number of actions have decreased the payment needs 
in  2016,  and  part  of  the  corresponding  outstanding  commitments  (usually  referred  to  as  "Reste  à 
liquider" or "RAL") will be decommitted. 

As regards budget items 11 01 06 01 and 11 06 62 02 , the decrease in payment appropriations derives 
from the detailed analysis of needs in commitment appropriations as described in section 4 above. 

Budget line 

11 01 06 01 

11 06 60 

11 06 61 
11 06 62 02 
Total 

Name 

Executive  Agency  for  Small  and  Medium-sized  Enterprises  —  Contribution  from  European  Maritime 
and Fisheries Fund (EMFF) 
Promoting  sustainable  and  competitive  fisheries  and  aquaculture,  balanced  and  inclusive  territorial 
development of fisheries areas and fostering the implementation of the common fisheries policy 
Fostering the development and implementation of the Union's integrated maritime policy 

Control and enforcement 

Payment 
appropriations 

-370 000 

-117 681 000 

-5 149 000 
-15 595 000 
-138 795 000 

5.2.2  

Sustainable Fisheries Partnership Agreements 

As  described  in  section  4  above,  after  detailed  analysis  of  the  status  of  negotiations  linked  to  the 
Sustainable  Fisheries  Partnership  Agreements  and  the  evaluation  of  the  possible  dates  of  entry  into 
force, EUR 6,7 million in payment appropriations can be released. 

Budget line 

40 02 41 
Total 

Reserve for Sustainable Fisheries Partnership Agreements 

Name 

5.2.3   Decentralised agencies (ECHA-biocides) 

Payment 
appropriations 

-6 735 000 
-6 735 000 

As described in section 4 above, the contribution from the EU budget to the Biocides activities of the 
European  Chemicals  Agency  (ECHA)  in  Helsinki  has  been  revised  downwards.  Consequently  the 
corresponding level of payment appropriations can be reduced by EUR 2,9 million. 

Budget line 

17 04 07 
Total 

European Chemicals Agency — Activities in the field of biocides legislation 

Name 

Payment 
appropriations 

-2 870 000 
-2 870 000 

5.3 

Heading 3 – Security & Citizenship 

As  described  in  section  2  above,  the  contribution  from  the  EU  budget  to  the  European  Medicines 
Agency  in  London  has  been  revised  downwards.  Consequently  the  corresponding  level  of  payment 
appropriations can be reduced by EUR 9,9 million. 

Budget line 

17 03 12 01 
Total 

Union contribution to the European Medicines Agency 

Name 

Payment 
appropriations 

-9 900 000 
-9 900 000 

9 

 
 
  
 
 
 
 
 
 
 
 
5.4 

Emergency Aid Reserve (EAR) 

The  balance  available  at  mid-September  in  payment  appropriations  in  the  EAR  for  2016  is 
EUR 190 million. Based on the latest forecast and leaving some reserve for possible new emergencies 
until the end of the year, an amount of EUR 170 million in payment appropriations can be released. 

Budget line 

40 02 42 
Total 

Emergency aid reserve 

Name 

Payment 
appropriations 

-170 000 000 
-170 000 000 

6. 

MODIFICATION OF THE ESTABLISHMENT PLAN OF FRONTEX 

Further to the swift political agreement reached in June 2016 on the proposal of the Commission to 
transform  the  Frontex  agency  into  the  European  Border  and  Coast  Guard  Agency15,  the  new 
Regulation was adopted by the European Parliament on 14 September 2016 and is expected to enter 
into force on 6 October 2016.  

In  order  to  enable  the  Agency  to  start  implementing  its  revised  mandate  as  soon  as  possible,  the 
Commission proposes to allow Frontex to recruit 50 additional temporary agents already in 2016, out 
of the additional 130 establishment plan posts requested for 2017 in the draft budget 2017. The aim of 
this frontloading of staff is in particular to reinforce return operations and pre-return assistance, joint 
operations and risk analyses, as well as pooled resources. Moreover, some administrative support staff 
is needed in the areas of human resources and ICT. 

Based on a careful analysis of the Agency's expenditure needs until year-end 2016, the recruitment of 
the additional staff requested, in the final quarter of 2016, can be financed within its current budget for 
the year. Consequently, a reinforcement of the EU contribution to Frontex is not required.  

The updated establishment plan is set out in the budgetary annex. 

7. 

SUMMARY TABLE BY MFF HEADING 

Heading 

(incl. AB 1-2 & DAB 3/2016) 

Budget 2016 

Draft Amending Budget 4/2016 

Budget 2016 

(incl. AB 1-2 & DAB 3-4/2016) 

CA 

PA 

CA 

PA 

CA 

PA 

1. 

Smart and inclusive growth 

69 841 150 263 

66 246 697 648 

-6 956 000 000 

69 841 150 263 

59 290 697 648 

Of which under global margin for 
commitments 

 543 000 000 

Ceiling  

69 304 000 000 

Margin 

 5 849 737 

 543 000 000 

69 304 000 000 

 5 849 737 

19 010 000 000 

17 402 423 594 

19 010 000 000 

17 402 423 594 

1a  Competitiveness for growth and jobs 
Of which under global margin for 
commitments 

 543 000 000 

Ceiling 

18 467 000 000 

Margin 

 543 000 000 

18 467 000 000 

Economic  social and territorial 
cohesion 

1b  

50 831 150 263 

48 844 274 054 

-6 956 000 000 

50 831 150 263 

41 888 274 054 

Ceiling 

50 837 000 000 

Margin 

 5 849 737 

50 837 000 000 

 5 849 737 

Sustainable growth: natural 
resources 

2. 

62 484 234 833 

55 120 803 654 

- 14 720 000 

- 148 400 000 

62 469 514 833 

54 972 403 654 

Ceiling 

64 262 000 000 

Margin 

1 777 765 167 

64 262 000 000 

1 792 485 167 

Of which: European Agricultural 
Guarantee Fund (EAGF) — Market related 
expenditure and direct payments 

42 220 335 824 

42 212 046 297 

42 220 335 824 

42 212 046 297 

15  

COM(2015) 671, 15.12.2015. 

10 

 
 
  
 
 
    
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
    
  
  
  
    
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
                                                 
Heading 

(incl. AB 1-2 & DAB 3/2016) 

Budget 2016 

Draft Amending Budget 4/2016 

Budget 2016 

(incl. AB 1-2 & DAB 3-4/2016) 

CA 

PA 

CA 

PA 

CA 

PA 

3. 

Security and citizenship 

4 051 966 698 

3 022 287 739 

 240 100 000 

  100 000 

4 292 066 698 

3 022 387 739 

Of which under Flexibility Instrument 

1 505 966 698 

Of which under Contingency margin 

 240 100 000 

Ceiling 

2 546 000 000 

Margin 

1 505 966 698 

 240 100 000 

2 546 000 000 

4.  Global Europe 

9 167 033 302 

10 155 590 403 

9 167 033 302 

10 155 590 403 

Of which under Flexibility Instrument 

 24 033 302 

Ceiling 

9 143 000 000 

Margin 

 24 033 302 

9 143 000 000 

5.  Administration 

8 951 016 040 

8 950 916 040 

8 951 016 040 

8 950 916 040 

Ceiling 
Of which offset against Contingency 
margin 

9 483 000 000 

Margin 

 531 983 960 

- 240 100 000 

9 483 000 000 

- 240 100 000 

 291 883 960 

Of which: Administrative expenditure of 
the institutions 

7 134 869 560 

7 134 769 560 

7 134 869 560 

7 134 769 560 

Sub-ceiling 
Of which offset against Contingency 
margin 

7 679 000 000 

Margin 

 544 130 440 

6.  Compensations 

Ceiling 

Margin 

- 240 100 000 

7 679 000 000 

- 240 100 000 

 304 030 440 

Total 

154 495 401 136 

143 496 295 484 

 225 380 000 

-7 104 300 000 

154 720 781 136 

136 391 995 484 

Of which under Flexibility Instrument 
Of which under global margin for 
commitments 

Of which under Contingency margin 

Ceiling 
Of which offset against Contingency 
margin 

1 530 000 000 

 832 817 382 

1 530 000 000 

 832 817 382 

 543 000 000 

 240 100 000 

 543 000 000 

 240 100 000 

154 738 000 000 

144 685 000 000 

154 738 000 000 

144 685 000 000 

- 240 100 000 

- 240 100 000 

Margin 

2 315 598 864 

2 021 521 898 

2 090 218 864 

9 125 821 898 

Other special Instruments 

 524 612 000 

 389 000 000 

- 170 000 000 

 524 612 000 

 219 000 000 

Grand Total 

155 020 013 136 

143 885 295 484 

 225 380 000 

-7 274 300 000 

155 245 393 136 

136 610 995 484 

8. 

UPDATE OF REVENUE APPROPRIATIONS 

8.1 

Overall  impact  of  DAB  4/2016  on  the  distribution  of  total  own  resources  payments 
between Member States 

As the present DAB decreases the payment appropriations of the 2016 budget, it will therefore have 
an impact on the total amount payable by Member States towards this budget. However there are also 
two adjustments on the revenue side of the budget which need to be taken into account. The first of 
these adjustments is an update of the estimates for Traditional Own Resources (TOR), as well as the 
Value  Added  Tax  (VAT)  and  Gross  National  Income  (GNI)  resources,  which  are  updated  to  take 
account of more recent economic forecasts. The second adjustment on the revenue side is an update of 
the UK correction. These two adjustments are presented in sections 8.2 and 8.3, below. 

The overall impact of both the expenditure and the revenue adjustments of this DAB is shown in the 
summary table below. This table also shows the distribution of total own resources payments between 

11 

 
 
  
 
  
  
  
  
    
  
  
    
  
  
  
  
    
  
  
  
    
  
    
    
  
  
  
  
  
  
  
  
    
  
  
  
    
  
  
  
  
  
  
  
  
  
  
    
  
  
  
  
  
  
  
  
  
  
  
  
  
    
  
  
  
  
    
    
  
  
    
    
    
  
  
  
  
  
    
  
  
  
    
  
  
  
  
  
  
  
    
  
  
    
  
  
  
  
  
    
  
  
  
  
 
Member States: as budgeted in the 2016 budget, as amended in Amending Budget (AB) 2/201616, and 
finally in the present DAB. 

16  

DAB 3/2016 (COM(2016) 310, 30.6.2016) has no effect on revenue. 

12 

 
 
  
 
 
 
                                                 
Distribution of total own resources payments by Member States (in million EUR) 

Budget 2016 

DAB 2/2016 

DAB 4/2016 

(1) 
 5 518.8   
 449.0   
 1 588.8   
 2 818.6   
 30 112.7   
 215.8   

 1 775.8   
 1 770.5   
 11 270.1   
 21 829.4   
 441.5   
 15 939.4   

 170.3   
 257.0   
 413.7   
 311.1   
 1 114.2   

 88.8   
 7 979.5   
 3 063.6   
 4 487.5   
 1 745.3   

 1 554.5   
 412.6   
 777.9   
 1 982.3   
 4 376.7   
 19 803.3   

(2) 

 5 480.8   
 445.1   
 1 575.0   
 2 793.0   
 29 827.3   
 213.9   

 1 760.3   
 1 753.8   
 11 168.1   
 21 625.2   
 437.6   
 15 790.5   

 168.7   
 254.6   
 410.2   
 308.2   
 1 103.9   

 88.0   
 7 917.1   
 3 033.3   
 4 447.0   
 1 729.1   

 1 539.6   
 409.2   
 770.8   
 1 963.5   
 4 335.2   
 19 570.3   

(3) 

5 375.0 
437.9 
1 547.3 
2 636.0 
28 440.4 
205.0 

1 803.3 
1 623.8 
10 700.2 
20 604.3 
424.1 
15 423.0 

170.7 
241.8 
393.8 
325.1 
1 026.9 

91.3 
7 680.0 
2 856.1 
4 112.6 
1 677.4 

1 465.6 
396.3 
723.0 
1 862.1 
4 241.3 
17 160.9 

142 268.6 

140 919.5   

133 645.2 

BE 
BG 
CZ 
DK 
DE 
EE 

IE 
EL 
ES 
FR 
HR 
IT 

CY 
LV 
LT 
LU 
HU 

MT 
NL 
AT 
PL 
PT 

RO 
SI 
SK 
FI 
SE 
UK 

EU 

8.2 

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, agreed at a meeting of the Advisory Committee on Own 
Resources (ACOR).  

The revision concerns the forecast of Traditional Own Resources (TOR) to be paid to the budget in 
2016 as well as the forecast of the 2016 VAT and GNI bases. The forecast in the 2016 Budget was 
established at the 163th ACOR meeting on 19 May 2015. The revised forecast taken into account in 
the  present  DAB  was  agreed  at  the  166th  ACOR  meeting  on  18  May  2016.  The  use  of  an  updated 
forecast of own resources improves the accuracy of the revenue forecasts and hence of the payments 
that Member States are asked to make during the budgetary year. 

13 

 
 
  
 
 
 
As compared to the forecast agreed in May 2015, the forecast agreed in May 2016 has been revised as 
follows17: 

–  Total  2016  net  customs  duties  (including  duties  on  agricultural  products)  are  now  forecast  at 
EUR 18 857,4 million (after deduction of 25 % in collection costs), which represents an increase of 
2,12  %  relative  to  the  forecast  of  EUR 18 465,3 million  included  in  the  2016  Budget.  The  main 
reason  for  this  increase  is  a  higher  forecasted  growth  rate  of  extra  EU  imports  and  also  higher 
forecasted tariff. The forecast was made on a Member State basis, using forecast growth rates of 
extra-EU imports as published in the Spring 2016 economic forecasts of 3 May 2016. 

–  The  total  2016  EU  uncapped  VAT  base  is  now  forecast  at  EUR  6 335 254,1 million,  which 
represents an increase of +0,66 % compared to the May 2015 forecast of EUR 6 293 752,9 million. 
The total 2016 EU capped VAT base18 is forecast at EUR 6 316 521,6 million, which represents an 
increase of +0,73% % compared to the May 2015 forecast of EUR 6 270 927,9 million. 

–  The total 2016 EU GNI base is forecast at EUR 14 692 928,3 million, which is a decrease (-0,04 

%) compared to the May 2015 forecast of EUR 14 698 459,1 million. 

The exchange rates of 31 December 2015 have been used for converting the forecast VAT and GNI 
bases  in  national  currency  into  euro  (for  the  nine  Member  States  that  are  not  members  of  the  euro 
area).  This  avoids  distortions  since  it  is  this  rate  that  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 2016, as adopted at the 166th 
ACOR meeting on 18 May 2016, are set out in the following table: 

Revised forecasts of TOR, VAT and GNI bases for 2016 (in million EUR) 

Sugar 
levies 
(75%)  

Customs 
duties 
(75%) 

Uncapped 
VAT bases 

GNI bases 

Capped 
VAT bases19 

6,6 
0,4 
3,4 
3,4 
26,3 
0,0 
0,0 
1,4 
4,7 
30,9 
1,7 
4,7 
0,0 
0,0 
0,8 
0,0 
2,1 
0,0 
7,2 
3,2 

1 860,80  
61,00  
235,00  
357,40  
3 867,10  
26,10  
295,00  
141,60  
1 340,50  
1 572,00  
41,20  
1 715,10  
18,30  
30,40  
75,20  
17,10  
132,70  
11,80  
2 260,30  
201,10  

172 199,1 
20 785,8  
68 037,8  
102 237,3  
1 298 442,2  
10 280,8  
80 908,8  
75 926,4  
472 305,2  
971 257,7  
25 614,4  
608 829,6  
11 629,9  
9 829,1  
15 104,9  
27 547,8  
43 390,8  
6 332,6  
278 703,9  
155 678,2  

412 944,7  
43 250,2  
152 406,5  
272 411,8  
3 111 270,6  
20 455,3  
174 461,4  
173 482,1  
1 099 728,5  
2 223 544,2  
43 550,8  
1 640 591,0  
17 386,9  
25 211,5  
37 732,4  
34 875,0  
105 284,7  
9 078,0  
689 027,6  
329 117,4  

172 199,1  
20 785,8  
68 037,8  
102 237,3  
1 298 442,2  
10 227,6  
80 908,8  
75 926,4  
472 305,2  
971 257,7  
21 775,4  
608 829,6  
8 693,5  
9 829,1  
15 104,9  
17 437,5  
43 390,8  
4 539,0  
278 703,9  
155 678,2  

BE 
BG 
CZ 
DK 
DE 
EE 
IE 
EL 
ES 
FR 
HR 
IT 
CY 
LV 
LT 
LU 
HU 
MT 
NL 
AT 

17  

18  

19  

The total forecast of 2016 net sugar sector levies remains at the same level (EUR 124,7 million, after deduction of 25 % in 
collection costs). 
In accordance with Council Decision 2007/436, if the VAT base of a Member State exceeds 50 % of its GNI, then it is capped 
at  this  50 %.  For  DAB  4/2016,  five  Member  States  will  have  their  VAT  base  capped  at  50 %  of  GNI:  Estonia,  Croatia, 
Cyprus, Luxembourg, Malta. 
The amounts highlighted in grey result from the capped VAT bases, as explained in footnote [16] above. 

14 

 
 
  
 
 
 
                                                 
Sugar 
levies 
(75%)  

Customs 
duties 
(75%) 

Uncapped 
VAT bases 

GNI bases 

Capped 
VAT bases19 

12,8 
0,1 
0,9 
0,0 
1,3 
0,7 
2,6 
9,5 
124,7 

516,00  
128,30  
128,90  
65,10  
90,90  
118,40  
515,00  
3 035,10  
18 857,4  

183 315,6  
87 110,9  
55 085,5  
17 855,0  
26 634,3  
91 535,7  
203 484,5  
1 215 190,3  
6 335 254,1  

418 608,4  
177 872,9  
161 642,2  
38 330,7  
76 101,3  
202 831,8  
468 997,7  
2 532 732,7  
14 692 928,3  

183 315,6  
87 110,9  
55 085,5  
17 855,0  
26 634,3  
91 535,7  
203 484,5  
1 215 190,3  
6 316 521,6  

PL 
PT 
RO 
SI 
SK 
FI 
SE 
UK 
EU 

8.3 

2015, 2014 and 2012 UK correction 

8.3.1 

Introduction 

The  correction  of  budgetary  imbalances  in  favour  of  the  United  Kingdom  (UK correction),  to  be 
budgeted in the present DAB, concerns three years: 2012, 2014 and 2015. 

The 2012, 2014 and 2015 UK corrections are subject to the rules of Council Decision 2007/436/EC, 
Euratom on the system of the European Communities' own resources20 and its accompanying working 
document, the 2007 Calculation Method21. Pursuant to the rules of this Decision, the net TOR 
“windfall gains” of the UK resulting from the increase since 2001 in the percentage of TOR retained 
by Member States as a compensation for their collection costs are neutralised and the allocated 
expenditure is adjusted by: 

–  pre-accession  expenditure  (PAE)  paid  under  appropriations  for  payments  relating  to  the  year 
preceding  the  enlargement.  The  adjustment  for  PAE  is  calculated  for  the  last  time  for  the  2012 
correction as it ceased to apply as from the 2013 correction budgeted for the first time in 2014; 

–  the 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.  

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. 

The difference between the definitive amount of the 2012 UK correction and the amount previously 
budgeted (the 3rd update entered in AB 6/2015) is entered in chapter 35 of the present DAB.  

8.3.2  Calculation of the corrections 
In the present DAB, the calculation and financing of the 1st update of the 2015 UK correction, the 2nd 
update of the 2014 UK correction and the definitive amount of the 2012 UK correction are entered. 

The update of the corrections for 2012 and 2014 stems mainly from the update of the VAT and GNI 
bases as communicated by Member States in autumn 2015 (VAT/GNI balances exercise).  

20  
21 

OJ L 163, 23.6.2007, p. 17. 
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/EC, Euratom] on the system of the 
European Communities' own resources” available on:  
http://ec.europa.eu/budget/library/biblio/documents/financing/calc_own_res_2007_en.pdf. 

15 

 
 
  
 
 
 
 
                                                 
8.3.2.1  2015 UK correction 

The  following  table  summarises  the  changes  between  the  provisional  amount  of  the  2015  UK 
correction entered in Budget 2016 and the 1st update of the 2015 UK correction to be entered in the 
present DAB. 

2015 UK correction 

(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) 

2015 UK 
correction 
PROVISIONAL 
Budget 2016 

2015 UK 
correction 
1st UPDATE 
DAB 4/2016 

19,4288% 

7,3919% 

19,2145% 

7,5910% 

12,0369% 
130 016 348 031 

11,6235% 
129 194 773 448 

Difference 

-0,2143% 

+0,1992% 

-0,4135% 
-821 574 582 

36 305 752 879 

31 733 179 803 

- 4 572 573 076 

0 
36 305 752 879 

0 
31 733 179 803 

0 
-4 572 573 076 

93 710 595 151 

97 461 593 645 

+3 750 998 494 

7 444 724 929 

7 476 753 663 

+32 028 734 

2 212 027 407 
5 232 697 523 
-50 550 782 
5 283 248 305 

1 912 680 343 
5 564 073 321 
-79 812 056 
5 643 885 377 

-299 347 064 
+331 375 798 
-29 261 274 
+360 637 072 

The 1st update of the 2015 UK correction is EUR 361 million higher as compared to the provisional 
amount of the 2015 UK correction entered in Budget 2016.  

8.3.2.2  2014 UK correction 
The following table summarises the changes between the 1st update of the 2014 UK correction entered 
in AB 6/2015 and the 2nd update of the 2014 UK correction to be entered in the present DAB. 

2014 UK correction 

(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) 

2014 UK 
correction 
1st UPDATE  
AB 6/2015 

2014 UK 
correction 
2nd UPDATE 
DAB 4/2016 

17,7333% 

7,3956% 

17,4319% 

7,4180% 

10,3377% 
128 742 225 549 

10,0139% 
128 669 838 650 

Difference 

-0,3014% 

+0,0224% 

-0,3238% 
-72 386 900 

33 471 514 270 

33 342 488 843 

-129 025 427 

0 
33 471 514 270 

0 
33 342 488 843 

95 270 711 279 

95 327 349 807 

0 
-129 025 427 

+56 638 527 

6 500 187 311 

6 300 352 079 

-199 835 232 

1 992 582 801 
4 507 604 510 
-36 554 387 
4 544 158 897 

1 531 441 424 
4 768 910 655 
-26 651 399 
4 795 562 054 

-461 141 377 
+261 306 145 
+9 902 988 
+251 403 157 

The 2nd update of the 2014 UK correction is EUR 251 million higher as compared to the 1st update of 
the 2014 UK correction entered in AB 6/2015. 

16 

 
 
  
 
 
 
 
 
8.3.2.3  2012 UK correction 
The  following  table  summarises  the  changes  between  the  3rd  update  of  the  2012  UK  correction 
entered in AB 6/2015 and the definitive amount of the 2012 UK correction to be entered in the present 
DAB. 

2012 UK correction 

(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) 

2012 UK 
correction 
3rd UPDATE  
AB 6/2015 

2012 UK 
correction 
DEFINITIVE 
DAB 4/2016 

16,1345% 

7,2358% 

16,1200% 

7,2358% 

8,8987% 
126 017 496 941 

8,8842% 
126 017 496 941 

30 151 705 809 

30 151 594 002 

3 084 631 771 
27 067 074 038 

3 084 519 964 
27 067 074 038 

95 865 791 132 

95 865 902 938 

Difference 

-0,0145% 

-0,0000% 

-0,0145% 
0 

-111 807 

-111 807 
0 

+111 807 

5 630 330 443 

5 621 164 211 

-9 166 232 

474 388 884 
5 155 941 559 
12 333 175 
5 143 608 383 

331 907 397 
5 289 256 814 
12 810 520 
5 276 446 294 

-142 481 487 
+133 315 255 
+477 344 
+132 837 911 

The definitive amount of the 2012 UK correction is EUR 133 million higher than the 3rd  update of the 
2012 UK correction entered in AB 6/2015 mainly due to the updates of the VAT and GNI bases as 
communicated by Member States in autumn 2015 (VAT/GNI balances exercise). 

For the 2012 UK correction the difference in the original amount of the UK correction between Own 
Resources  Decision  (ORD)  2000  and  ORD  2007  is  EUR 2 559,3 million  in  2004  prices  and 
EUR 2 879,7 million in current prices. 

8.3.2.4  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 the 2007 to 2012 corrections is 
EUR 8 218,0 million in 2004 prices and EUR 9 006,9 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 
-301 679 647 
-1 349 749 997 
-2 127 945 515 
-2 347 786 720 
-2 879 720 911 
-9 006 882 790 

0 
-280 649 108 
-1 276 489 414 
-1 964 546 518 
-2 137 047 656 
-2 559 302 810 
-8 218 035 506 

17 

 
 
  
 
 
 
 
 
8.3.3 

Entry in the DAB 4/2016 of the 1st update of the 2015 UK correction, the 2nd update of the 
2014 UK correction and definitive amount of the 2012 UK correction  

8.3.3.1  2012 UK correction (chapter 35) 

The amount of the UK correction to be budgeted in chapter 35 of the present DAB is the difference 
between the definitive amount of the 2012 UK correction (i.e. EUR 5 276 446 294) and the 3rd update 
of  the  2012  UK  correction  (i.e.  EUR 5 143 608 383  entered  in  AB  6/2015)   amounting  to 
EUR 132 837 911. 

This  amount  is to  be financed along the revised 2012 GNI  bases as known at the end of 2015. The 
budgeting of this amount in chapter 35 is summarised below: 

2012 UK correction — Chapter 35 

LU 
12 108 628 
1 275 199  HU 
3 342 634  MT 
NL 
4 686 427 
AT 
7 934 870 
PL 
568 776 
PT 
5 094 409 
RO 
1 773 357 
SI 
7 537 051 
SK 
38 002 662 
FI 
382 317 
SE 
19 830 215 
241 390 
UK 
102 976 
646 364  Total 

1 741 166 
2 179 154 
101 561 
4 101 900 
1 068 284 
7 063 680 
3 441 569 
2 351 280 
554 253 
1 502 129 
4 198 567 
1 007 093 

-132 837 911 
0 

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

8.3.3.2  2014 UK correction (chapter 36) 
the  2nd  update  of 

The  amount  of 
is 
EUR 251 403 157  higher  than  the  1st  update  of  the  2014  UK  correction  (i.e.  EUR 4 544 158 897) 
entered in AB 6/2015). 

the  2014  UK  correction  (i.e.  EUR 4 795 562 054) 

This  amount  is to  be financed along the revised 2014 GNI  bases as known at the end of 2015. The 
budgeting of this amount in chapter 36 is summarised below: 

2014 UK correction — Chapter 36 

LU 
9 808 723 
1 857 845  HU 
5 618 512  MT 
NL 
5 183 926 
AT 
15 098 382 
PL 
615 754 
PT 
6 055 723 
RO 
3 882 091 
SI 
23 452 091 
SK 
62 183 471 
FI 
2 392 016 
SE 
60 923 232 
1 058 836 
UK 
517 980 
493 224  Total 

3 153 754 
2 775 751 
557 582 
3 797 278 
1 572 870 
16 987 381 
5 315 559 
6 012 749 
1 449 464 
2 207 088 
5 796 891 
2 634 984 

-251 403 157 
0 

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

18 

 
 
  
 
 
 
 
 
 
 
 
 
 
8.3.3.3  2015 UK correction (chapter 15) 
The 1st update of the 2015 UK correction correspond to EUR 5 643 885 377 and is EUR 360 637 072 
million higer than the amount entered in Budget 2016 (EUR 5 283 248 305). 

This amount is to be financed along the revised 2016 GNI bases of the present DAB. The budgeting of 
this amount in chapter 15 is summarised below: 

2015 UK correction – chapter 15 

279 071 850 
LU 
29 228 885  HU 
102 997 723  MT 
184 098 416 
NL 
361 006 829 
AT 
13 823 881 
PL 
117 902 629 
PT 
117 240 809 
RO 
743 206 698 
SI 
1 502 691 749 
SK 
29 432 034 
FI 
1 108 726 582 
SE 
11 750 228 
17 038 165 
25 499 905  Total  

UK 

23 568 848 
71 152 375 
6 134 996 
79 949 224 
38 188 137 
282 899 431 
120 208 152 
109 239 295 
25 904 242 
51 429 963 
137 075 608 
54 418 723 

-5 643 885 377 

0 

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

8.4 

Fines 

By early September 2016, an amount of EUR 1 134 million of fines (principal) has become definitive. 
According  to  Article  83  of  the  Financial  Regulation,  definitive  fines  "shall  be  recorded  as  soon  as 
possible and at the latest in the year following the exhaustion of all legal remedies". At this stage the 
Commission  proposes  to  offset  these  fines  against  the  exchange  rate  losses  arising  from  the 
depreciation  of  the  GBP  against  the  euro.  The  impact  of  this  depreciation  is  estimated  at  around 
EUR 1,8 billion. The revenue from the fines will minimise the risk of a negative outturn. 

19