Consolidated annual accounts of the European Union : financial year 2015.
Date: 2017-05-30
Institutions: Directorate-General for Budget
Subjects: Community budget, consolidated account, financial year, implementation of the budget, public accounting, public finance

Consolidated

annual accounts

of the European Union

Financial year
2015

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More information on the European Union is available on the Internet (http://europa.eu).

Luxembourg: Publications Office of the European Union, 2017

Print:
Online:

doi:10.2761/541153
doi:10.2761/848680

ISBN 978-92-79-68744-0
ISBN 978-92-79-68738-9

KV-02-17-492-EN-C
KV-02-17-492-EN-N

© European Union, 2017

Reuse is authorized provided the source is acknowledged. 
The reuse policy of the European Union is regulated by Decision 2011/833/EU (OJ L 330, 14.12.2011, p. 39).

 
 
 
EUROPEAN 
COMMISSION 

Brussels, 11.7.2016  

COM(2016) 475 final  

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS  

CONSOLIDATED ANNUAL ACCOUNTS OF THE EUROPEAN UNION 2015 

EN

EN 

 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

CONTENTS 

FINANCIAL STATEMENT DISCUSSION AND ANALYSIS ........................................................ 5 

NOTE ACCOMPANYING THE CONSOLIDATED ACCOUNTS .................................................. 27 

CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES ............................... 29 

BALANCE SHEET ...................................................................................................... 32 
STATEMENT OF FINANCIAL PERFORMANCE .................................................................. 33 
CASHFLOW STATEMENT ........................................................................................... 34 
STATEMENT OF CHANGES IN NET ASSETS ................................................................... 35 
NOTES TO THE FINANCIAL STATEMENTS ..................................................................... 37 

AGGREGATED REPORTS ON THE IMPLEMENTATION OF THE BUDGET AND EXPLANATORY 
NOTES ......................................................................................................................101 

3 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

4 

 
 
 
Annual accounts of the European Union 2015 

FINANCIAL STATEMENT DISCUSSION AND 
ANALYSIS 

FINANCIAL YEAR 2015 

It should be noted that due to the rounding of figures into millions of euros, some financial data in the 
tables below may appear not to add up. 

5 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

6 

 
 
 
Annual accounts of the European Union 2015 

1. 

EU: Institutional governance and operations 

The EU is based on the rule of law. This means that every action taken by the EU is founded on treaties 
that  have  been  approved  voluntarily  and  democratically  by  all  EU  Member  States.  It  has  a  unique 
institutional set-up: 

−  European citizens elect directly the Members of the European Parliament (EP); 

−  The EU's broad priorities are set by the European Council, which brings together national and EU-

level leaders; 

−  Member  States  governments  are  represented  in  the  Council  of  the  European  Union  (the 

'Council'); 

−  The  interests  of  the  EU  as  a  whole  are  promoted  by  the  European  Commission  (the 
'Commission'),  whose  President  is  elected  by  the  EP  and  whose  members  are  suggested  for 
appointment  by  national  governments  by  common  accord  with  the  President-elect  and  are 
subject, as a body, to a vote of consent by the EP. 

The EU has its own legal order which is separate from international law and forms an integral part of the 
legal systems of the Member States. The legal order of the EU is based on its own sources of law. Given 
the varied nature of these sources, a hierarchy had to be established among them. Primary legislation is 
at  the  top  of  the  hierarchy  and  is  represented  by  the  Treaty  on  European  Union  (TEU);  Treaty  on  the 
Functioning of the European Union (TFEU); Charter of Fundamental Rights of the European Union; other 
Treaties  and  Protocols.  This  is  followed  by  international  agreements  concluded  by  the  EU,  general  legal 
principles and secondary legislation, which is based on the Treaties. 

The organisational governance of the EU consists of institutions, agencies and other EU bodies which are 
listed  in  note  9  of  the  notes  to  the  financial  statements.  The  main  institutions  in  the  sense  of  being 
responsible for drafting policies and taking decisions are the EP, the European Council, the Council and 
the Commission. 

2.  Main political objectives of the EU 

The  Commission  proposed  on  3  March  2010  the  Europe  2020  strategy  which  is  a  10-year  strategy  for 
reviving  the  economy  of  the  EU.  It  aims  at  "smart,  sustainable,  inclusive  growth"  with  greater 
coordination of national and European policy. A number of headline targets have been agreed for the EU 
to  achieve  by  the  end  of  2020.  These  cover  employment,  research  and  development,  climate/energy, 
education,  social  inclusion  and  poverty  reduction.  This  limited  set  of  EU-level  targets  is  translated  into 
national targets in each EU country, reflecting different situations and circumstances. 

Europe  has  identified  new  engines  to  boost  growth  and  jobs.  These  areas  are  addressed  by  7  flagship 
initiatives: 

Innovation Union; 
Youth on the move; 

•  Digital agenda for Europe; 
• 
• 
•  Resource efficient Europe; 
•  An industrial policy for the globalisation era; 
•  An agenda for new skills and jobs; and 
• 
European platform against poverty. 

Within  each  initiative,  both  the  EU  and  national  authorities  have  to  coordinate  their efforts  so that  they 
are mutually reinforcing.  

The  Commission  that  came  into  office  in  November  2014  has  defined  the  following  10  initiatives  (up  to 
2019) which represent a continuation of the Europe 2020 strategy: 

• 

A new boost for jobs, growth and investment: 

The main initiative of the EU under this heading is the European Fund for Strategic Investments (EFSI), 
which was launched together with the EIB Group. It is intended to help overcome the current investment 
gap  in  the  EU  by  mobilising  private  financing  for  strategic  investments  in  key  areas  such  as 
infrastructure,  education,  research  and  innovation,  renewable  energy  as  well  as  risk  finance  for  small 

7 

 
 
Annual accounts of the European Union 2015 

businesses.  It  is  expected  that  additional  funding  of  Member  States,  national  promotional  banks  and 
private investors would bring the investments in the EU to a total of EUR 315 billion. 

• 

A resilient energy union with a forward looking climate change policy: 

The EU has long been committed to international efforts to tackle climate change and felt the duty to set 
an example through robust policy-making at home. At European level a comprehensive package of policy 
measures to reduce greenhouse gas emissions has been initiated through the European Climate Change 
Programme (ECCP). The EU has set itself targets for reducing its greenhouse gas emissions progressively 
up to 2050. Key climate and energy targets are set in the 2020 climate and energy package and in the 
2030 climate and energy framework. These targets are defined so as to put the EU on the way to achieve 
the transformation towards a low-carbon economy as detailed in the 2050 low-carbon roadmap. The EU 
tracks  its  progress  on  cutting  emissions  through  regular  monitoring  and  reporting.  The  EU  has  been  at 
the  forefront  of  international  efforts  towards  a  global  climate  deal.  Following  limited  participation  in  the 
Kyoto  Protocol  and  the  lack  of  agreement  in  Copenhagen  in  2009,  the  EU  has  been  building  a  broad 
coalition  of  developed  and  developing  countries  in  favour  of  high  ambition  that  shaped  the  successful 
outcome  of  the  Paris  climate  conference  (COP21)  in  December  2015.  At  this  conference  195  countries 
adopted the first-ever universal, legally binding global climate deal. The EU was the first major economy 
to  submit  its  intended  contribution  to  the  new  agreement  in  March  2015.  It  is  already  taking  steps  to 
implement its target to reduce emissions by at least 40 % by 2030. 

• 

A new policy on migration:  

Migration  has  been  one  of  the  political  priorities  of  the  current  Commission.  The  main  objective  of  this 
European  Agenda  on  Migration  is  to  approach  the  issue  of  migration  in  a  comprehensive  way.  The  first 
part  of  this  Agenda  defines  immediate  measures  to  prevent  human  tragedies  and  to  reinforce 
mechanisms  to  deal  with  emergencies.  This  will  be  done  by  strengthening  the  presence  at  sea  to  save 
lives,  targeting  criminal  smuggling  networks,  responding  to  high  volumes  of  arrivals  within  the  EU  and 
using  the  EU's  operational  and  financial  tools  to  help  frontline  Member  States.  As  a  first  step  in  2015, 
through  amending  budgets,  the  Commission  made  available  additional  funding  –  see  section  6  below. 
Furthermore, the long-term policy on migration needs to be redefined based on four pillars: 1) reducing 
the  incentives  for  irregular  migration;  2)  saving  lives  and  securing  the  external  borders;  3)  a  strong 
common asylum policy; and 4) a new policy on legal migration. 

• 

A deeper and fairer internal market: 

The  Single  Market  is  one  of  Europe’s  major  achievements  and  its  best  asset  in  times  of  increasing 
globalisation.  It  is  an  engine  for  building  a  stronger  and  fairer  EU  economy.  By  allowing  people,  goods, 
services and capital to move more freely it opens up new opportunities for citizens, workers, businesses 
and  consumers,  creating  the  jobs  and  growth  Europe  so  urgently  needs.  More  integrated  and  deeper 
capital  markets  will  channel  more  funding  to  companies,  especially  SMEs,  and  infrastructure  projects. 
Better worker mobility will let people move more freely where their skills are needed. And combatting tax 
evasion and tax fraud will ensure that all contribute their fair share. 

• 

Digital Single Market package: 

The  internet  and  digital  technologies  are  transforming  our  world.  But  existing  barriers  online  mean 
citizens  miss  out  on  goods  and  services,  internet  companies  and  start-ups  have  their  horizons  limited, 
and businesses and governments cannot fully benefit from digital tools. It is thus necessary to make the 
EU's  single  market  fit  for  the  digital  age  –  tearing  down  regulatory  walls  and  moving  from  28  national 
markets  to  a  single  one.  This  could  contribute  EUR 415 billion  per  year  to  the  EU  economy  and  create 
hundreds of thousands of new jobs. 

• 

An area of justice and fundamental rights: 

The EU is not simply a common market for goods and services. Europeans share values that are spelled 
out  in  the  EU  Treaties  and  the  Charter  of  Fundamental  Rights.  The  EU  must  never  lose  sight  of  those 
values  in  its  efforts  to  fight  terrorism,  human  trafficking,  smuggling  and  cybercrime.  It  is  intended  to 
make  life  easier  for  Europeans  who  study,  work  or  get  married  in  other  EU  countries.  One  of  the  main 
goals  is  therefore  to  build  bridges  between  the  different  national  legal  systems  across  the  EU.  A 
borderless  and  seamless  European  justice  area  will  ensure  that  citizens  can  rely  on  a  set  of  rights  all 
across the continent. 

8 

 
 
• 

A stronger global actor: 

Annual accounts of the European Union 2015 

The  EU  needs  a  strong  common  foreign  policy  to  respond  efficiently  to  global  challenges,  including  the 
crises in its neighbourhood, project its values, and contribute to peace and prosperity in the world. 

• 

A balanced EU-US free trade agreement: 

The  EU  is  negotiating  an  ambitious  and  balanced  trade  and  investment  deal  with  the  US.  The 
Transatlantic  Trade  and  Investment  Partnership  (TTIP)  will  create  new  trade  and  investment 
opportunities  for  companies,  big  and  small,  and  new  jobs.  For  consumers,  it  will  cut  prices  and  widen 
choice,  while  keeping  the  EU's  high  standards  for  consumer  protection,  social  rights  and  environmental 
rules. It will also boost Europe's influence in the world – by shaping global trade, projecting its values and 
attracting more investment. 

• 

A Union of democratic change: 

For  the  first  time,  in  2014,  EU  countries  had  to  take  the  results  of  the  elections  into  account  when 
proposing a candidate for President of the Commission. Albeit an important step, this is only the first of 
many in making the EU more democratic and bringing it closer to its citizens. Europeans have the right to 
know  who  Commissioners  and  Commission  staff,  Members  of  the  European  Parliament  and 
representatives  of  the  Council  meet  in  the  context  of  the  legislative  process.  The  Commission  is 
committed to bringing a new lease of life to the relationship with the European Parliament, as well as to 
working more closely with national parliaments. 

• 

Deeper Economic and Monetary Union: Continued efforts to promote economic stability 
and attract investors to Europe: 

The  Commission's  work  on  completing  the  Economic  and  Monetary  Union  builds  on  the  Five  Presidents' 
Report,  which  set  out  four  areas  where  work  is  needed.  The  Five  Presidents'  Report  is  the  result  of 
numerous consultations between the Member States, the EU institutions involved and the 5 Presidents. 

3. 

EU Budget: From preparation to discharge 

3.1.  Budget and Funding 

The multiannual financial framework (MFF) forms the EU's political objectives and sets annual maximum 
amounts (ceilings) for EU expenditure as a whole and for the main categories of expenditure (headings). 
The  sum  of  the  ceilings  of  all  headings  gives  the  total  ceiling  of  commitment  appropriations.  The  EU 
Budget  finances  a  wide  range  of  policies  and  programmes  throughout  the  EU.  In  accordance  with  the 
priorities  set  by  the  EP  and  the  Council  in  the  MFF,  the  Commission  carries  out  specific  programmes, 
activities and projects in the field. The budget is prepared by the Commission and usually agreed in mid-
December by the EP and the Council, based on the procedure of Art. 314 TFEU. According to the principle 
of  budget  equilibrium,  the  total  revenue  must  equal  total  expenditure  (payment  appropriations)  for  a 
given financial year. 

The  EU  has  two  main  categories  of  funding:  Own  resources  revenues  and  sundry  revenues.  Own 
resources can be divided into traditional own resources (such as custom levies), the own resource based 
on  value  added  tax  (VAT)  and  the  resource  based  on  gross  national  income  (GNI).  Sundry  revenues 
arising  from  the  activities  of  the  EU  (e.g.  competition  fines)  normally  represent  less  than  10 %  of  total 
revenue.  Own  resources  revenue  make  up  the  vast  majority  of  EU  funding  and  accrue  automatically  to 
the  EU  to  enable  it  to  finance  its  budget  without  the  need  for  a  subsequent  decision  by  national 
authorities.  The  overall  amount  of  own  resources  needed  to  finance  the  budget  is  determined  by  total 
expenditure less sundry revenue. The total amount of own resources cannot exceed 1.23 % of the gross 
national income (GNI) of the EU. 

As  a  general  principle  the  EU  is  not  allowed  to  borrow  money  on  capital  markets  or  from  financial 
institutions to finance its budget. 

9 

 
 
 
Annual accounts of the European Union 2015 

3.2.  How the EU budget is managed and spent 

Primary operational expenditure 

The  EU's  operational  expenditure  covers  the  various  headings  of  the  MFF  and  takes  different  forms, 
depending  on  how the  money  is  paid out  and  managed.  From  2014  onwards,  the  Commission  classifies 
its expenditure as follows: 

Direct  management:  this  is  where  the  budget  is  implemented  directly  by  the  Commission 
services. 

Indirect  management:  this  refers  to  cases  where  the  Commission  confers  tasks  of 
implementation of the budget to bodies of EU law or national law, such as the EU agencies. 

Shared  management:  under  this  method  of  budget  implementation  tasks  are  delegated  to 
Member States. About 80 % of the expenditure falls under this management mode covering such 
areas as agricultural spending and structural actions. 

The different financial actors within the Commission 

The College of Commissioners assumes collective political responsibility but in practice does not itself 
exercise the budget implementation powers vested in it. It delegates these tasks each year to individual 
civil servants accountable to the College via the Financial Regulation (FR) and the Staff Regulations (SR). 
The  staff  concerned  –  generally  Directors-General  and  Heads  of  Service  -  are  known  as  “Authorising 
Officers  by  delegation”  or  "AODs".  They  in  turn  may  further  delegate  budget  implementation  tasks  to 
“Authorising Officers by sub-delegation”. 

The responsibility of the Authorising Officers covers the entire management process, from determining 
what  needs  to be done to  achieve  the  policy  objectives  set  by  the  institution  to  managing the  activities 
launched  from  both  an  operational  and  budgetary  standpoint.  Each  Authorising  Officer  is  required  to 
prepare an Annual Activity Report (AAR) on the activities under their responsibility where they report on 
policy  results  and  on  the  reasonable  assurance  they  may  have  that  the  resources  assigned  to  the 
activities described in their report have been used for their intended purpose and in accordance with the 
principles  of  sound  financial  management,  and  that  the  control  procedures  put  in  place  give  the 
necessary guarantees concerning the legality and regularity of the underlying transactions. On the basis 
of Art. 66 FR, the Commission transmits a summary report (synthesis report) on the individual AARs to 
the  EP  and  the  Council,  by  which  the  Commission  takes  overall  political  responsibility  for  the 
management  of  the  EU  budget  in  line  with  Art.  317  TFEU.  This  report  and  the  AAR  are  available  at: 
http://ec.europa.eu/atwork/planning-and-preparing/synthesis-report/index_en.htm.  

According  to  Art.  318  TFEU,  the  Commission  issues  an  evaluation  report  on  the  progress  and 
performance  of  Commission  programmes  based  on  the  AARs  of  the  Authorising  Officers.  As  from  the 
financial  year  2015,  the  synthesis  report  and  the  evaluation  report  are  merged  with  the  information 
presented in a new report called "Annual Management and Performance Report for the budget." 

The Accounting Officer executes payment and recovery orders drawn up by Authorising Officers and is 
responsible for managing the treasury, laying down accounting rules and methods, validating accounting 
systems,  keeping  the  accounts  and  drawing  up  the  institution's  annual  accounts.  Furthermore,  the 
Accounting  Officer  is  required  to  sign  the  annual  accounts  declaring  that  they  present  fairly,  in  all 
material aspects, the financial position, the results of the operations and the cashflows.  

10 

 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

3.3.  Financial reporting and accountability 

The  consolidated  annual  accounts  of  the  EU  provide  financial  information  on  the  activities  of  the 
institutions, agencies and other bodies of the EU from an accrual accounting and budgetary perspective. 
These accounts do not comprise the annual accounts of Member States. 

The annual accounts of the EU consist of two separate but linked parts: 

a) 

b) 

the financial statements; and 

the  reports  on  implementation  of  the  budget,  which  provide  a  detailed  record  of  budget 
implementation. 

It  is  the  responsibility  of  the  Commission's  Accounting  Officer  to  prepare  the  EU's  consolidated  annual 
accounts and ensure that  they present fairly, in all material aspects, the financial position, the result of 
the operations and the cashflows of the EU. 

In  addition  to  the  above  annual  accounts,  ad-hoc  reports  on  specific  areas  such  as  the  report  on 
budgetary  and  financial  management,  on  financial  instruments,  on  guarantees  given  and  on  financial 
corrections are also prepared. 

Reporting and Accountability in the Commission: 

3.4.  Audit and discharge 

Audit 

The  EU’s  annual  accounts  and  resource  management  are  audited  by  the  European  Court  of  Auditors 
(Court), its external auditor, which as part of its activities draws up for the EP and the Council: 

(1) 

(2) 

an annual report on the activities financed from the general budget, detailing its observations on 
the annual accounts and underlying transactions; 

an  opinion,  based  on  its  audits  and  given  in  the  annual  report  in  the  form  of  a  statement  of 
assurance,  on  (i)  the  reliability  of  the  accounts  and  (ii)  the  legality  and  regularity  of  the 

11 

 
 
 
Annual accounts of the European Union 2015 

underlying  transactions  involving  both  revenue  collected  from  taxable  persons  and  payments  to 
final beneficiaries; and 

(3) 

special reports giving the findings of audits covering specific areas. 

Discharge 

The final step of a budget lifecycle is the discharge of the budget for a given financial year. The discharge 
represents  the  political  aspect  of  the  external  control  of  budget  implementation  and  is  the  decision  by 
which  the  EP,  acting  on  a  Council  recommendation,  "releases"  the  Commission  (and  other  EU  bodies) 
from its responsibility for management of a given budget by marking the end of that budget's existence. 
The EP is the discharge authority within the EU. This means that following the audit and finalisation of the 
annual  accounts  it  falls  to  the  Council  to  recommend  and  then  to  the  EP  to  give  a  discharge  to  the 
Commission and other EU bodies for implementing the EU budget for a given financial year. This decision 
is  based  on  an  examination  of  the  annual  accounts,  the  Commission's  annual  management  and 
performance  report  for  the  budget  (former  synthesis  report  and  annual  evaluation  report),  the  annual 
report, the audit opinion and special reports of the Court, and replies of the Commission to questions and 
further information requests. 

This discharge procedure may produce three outcomes: the granting, postponement or the refusal of the 
discharge.  Integral  to  the  annual  budgetary  discharge  procedure  in  the  EP  are  the  hearings  with 
Commissioners who are questioned by the Members of the EP's Budgetary Control Committee regarding 
the policy areas under their responsibility. The final discharge report including specific recommendations 
to the Commission for action is adopted in Plenary of the EP. The Council discharge recommendations are 
adopted  by  ECOFIN.  Both,  the  EP's  discharge  report  as  well  as  the  Council  discharge  recommendations 
are  subject  to  an  annual  follow  up  report  in  which  the  Commission  outlines  the  concrete  actions  it  has 
taken to implement the recommendations made. 

4. 

Consolidated financial statements of the EU: 
Financial situation 2015 

4.1.  Revenue 

The majority of revenue of the EU institutions and bodies are revenues from non-exchange transactions. 
The table below provides an overview of the main categories of these revenues. 

Five year trend of revenue from non-exchange transactions in EUR millions: 

160 000

140 000

120 000

100 000

80 000

60 000

40 000

20 000

-
2011

2012

2013

2014

2015

12 

Recovery of expenses

Fines

VAT

TOR

GNI resources

 
 
 
Annual accounts of the European Union 2015 

The GNI resource in 2014 included major revisions for the GNI dating back to 2002. The adjustment of 
contributions was thus unprecedented in size totalling almost EUR 10 billion across all EU Member States. 
This explains most of the decrease in 2015 compared to the previous year. 

Recovery  of  expenses  represent  recovery  orders  issued  by  the  Commission  that  are  cashed  or  offset 
against  subsequent  payments  recorded  in  the  Commissions  accounting  system  made  so  as  to  recover 
expenditure previously paid out from the EU budget. 

4.2.  Expenses 

Expenses were, of EUR 155.9 billion, at a lower level than last year (2014: EUR 165.3 billion). A decrease 
of  EUR 4.6 billion  was  noted  for  the  European  Regional  Development  Fund  (ERDF)  and  Cohesion  Fund 
(CF),  which  was  due  to  the  slow  start  of  the  implementation  of  the  programming  period  2014-2020. 
Expenses under the European Social Fund (ESF) fell by EUR 2.8 billion due to fewer cost claims submitted 
for the 2007-2013 multiannual financial framework period. 

The main expense items (EUR 112.4 billion) are transfer payments under the shared management mode. 
The  main  funds  are:  the  European  Agricultural  Guarantee  Fund  (EAGF),  the  European  Agricultural  Fund 
for Rural Development (EAFRD) and other rural development instruments, ERDF and CF and the ESF. In 
the financial year 2015 these made up almost 71 % of total expenses.  

EAGF

EAFRD

ERDF / CF

ESF

9%

35%

41%

15%

Expenses  incurred  under  direct  management  mainly  represent  the  budget  implementation  by  the 
Commission, executive agencies and, new from 2015 onwards, by trust funds. Also included under direct 
management are administrative expenses of all EU institutions and agencies. Under indirect management 
the  budget  is  implemented  by  EU  agencies,  EU  bodies,  third  countries,  international  organisations  and 
other entities. Overall, the expenses incurred under direct and indirect management made up about 14 % 
of total expenses (EUR 22 billion). 

The EU also recognises future payment obligations as expenses that are not yet shown in the cash-based 
budgetary accounts. They are in particular shown under payables and accrued charges for agriculture and 
rural development and under pension and employee benefits liabilities relating to pension rights acquired 
by  Commissioners,  MEPs  and  staff  and  lead  to  a  negative  economic  result  (these  payments  will  be 
financed by future budgets and are not included yet in revenue). 

4.3.  Economic result 

The economic result of the period (i.e. the deficit) of EUR (13 033) million remained at a similar level as 
last year. 

13 

 
 
Annual accounts of the European Union 2015 

4.4.  Assets 

EUR 154 billion assets on the consolidated balance sheet of the EU 

1%

6%

7%

3%

26%

14%

6%

Loans

37%

Available for sale financial assets

Cash and cash equivalents

Pre-financing

Other advances to Member States

Receivables and recoverables

Property, Plant & Equipment

Other

The most significant items on the asset side of the balance sheet are financial assets (loans, available for 
sale financial assets, cash) and pre-financing amounts, which make up almost 83 % of the assets of the 
EU. The amount of loans fell by EUR 1.6 billion to EUR 57 billion whereas the amount of available for sale 
financial  instruments  financed  from  the  EU  budget  (budgetary  instruments)  increased  by  about 
EUR 460 million.  Included  on  the  asset  side  under  Property,  Plant  and  Equipment  are  assets  concerning 
the Copernicus programme (EUR 1.7 billion) and Galileo assets under construction (EUR 2.1 billion). 

In  previous  years,  the  EU  institutions  &  bodies  managed  to  keep  the  amounts  held  as  cash  and  cash 
equivalents at year end at a low level. The high cash balance of EUR 21.7 billion at 31 December 2015 is 
mainly due to: 

• 

• 
• 
• 

the  delayed  payment  of  GNI  and  VAT  balances  of  2014  (EUR 5.4 billion)  which  were  spread 
throughout  2015,  with  a  very  large  part  paid  in  September  2015.  The  Member  States’ 
contribution to the EU budget based on VAT and GNI is subject to an annual adjustment, which 
is performed every year on the first working day of December. The adjustment in 2014 included 
major revisions for GNI dating back to 2002, thus resulting in an unprecedented EUR 9.5 billion 
across all EU Member States. 

the GNI and VAT balance of 2015 (EUR 1.4 billion). 

the 2016 GNI paid in advance (EUR 0.7 billion) by two Member States. 

fines and other revenue (EUR 1.5 billion). 

Based on the own resources regulation, these balances could only be returned to the Member States in 
2016 via an amending budget. 

Pre-financing 

It  should  be  noted  that  the  level  of  pre-financing  is  significantly  influenced  by  the  MFF  cycle  –  for 
example at the beginning of an MFF period one can expect large advances to be paid to Member States 
under cohesion policy. The Commission makes every effort to ensure that the levels of pre-financing are 
maintained at an appropriate level. A balance has to be struck between ensuring sufficient funding for the 
projects and the timely recognition of expenditure. 

The total pre-financing (excluding other advances to Member States and contributions to trust funds) on 
the  EU  balance  sheet  amounts  to  EUR 40 billion  (2014:  EUR 45 billion),  almost  all  of  which  relates  to 
Commission  activities.  Some  70 %  of  the  Commission's  pre-financing  concerns  shared  management, 
which  means  that  the  implementation  of  the  budget  is  delegated  to  Member  States  (the  Commission 
retains a supervisory role). 

14 

 
 
Commission pre-financing by management mode 

Annual accounts of the European Union 2015 

Indirect 
management
15%

Direct 
management
16%

Shared 
management
69%

The most significant pre-financing amount under shared management mode relates to ERDF & CF. 

Long-term pre-financing has increased by EUR 12.6 billion related to the new MFF while short-term pre-
financing fell by EUR 17.7 billion. The increase in long-term pre-financing is mainly due to the new pre-
financing  payments  made  under  shared  management  for  the  2014-2020  MFF  (EUR 10 billion  in  total  of 
which EUR 7 billion is for the cohesion policy). The decrease in the short term amounts is also mainly due 
to  shared  management  –  as  the  2007-2013  MFF  is  at  the  closure  stage,  the  related  pre-financing  is 
gradually being cleared. 

Financial instruments under direct and indirect management 

The following items are shown as financial instruments in the EU annual accounts: 

• 

• 

• 

Loans granted from the budget; 

Loans granted from borrowed funds; 

Equity instruments; 

•  Guarantee instruments; and 

•  Guarantee  funds:  guarantees  given  to  external  entities  (mainly  the  EIB  Group)  for  instruments 

not created by the EU budget. 

The significance and volume of financial instruments financed by the EU budget under direct and indirect 
management  increases  from  year  to  year.  The  basic  concept  behind  this  approach,  in  contrast  to  the 
traditional method of budget implementation by giving grants and subsidies, is that for each euro spent 
from  the  budget  via  financial  instruments,  the  final  beneficiary  receives  more  than  EUR  1  as  financial 
support due to the leverage effect. This intelligent use of the EU budget aims at maximising the impact of 
the funds available. Equity instruments and investments (i.e. equity instruments and debt securities) held 
in guarantee instruments and the guarantee funds are shown as available for sale financial assets in the 
annual accounts of the EU. 

15 

 
 
 
 
 
 
 
 
Available for sale financial assets of budgetary financial instruments 

Annual accounts of the European Union 2015 

EUR millions

3 500

3 000

2 500

2 000

1 500

1 000

 500

-

2011

2012

2013

2014

2015

Guarantee Funds 

Guarantee  funds  created  by  the  EU  have  been  set-up  for  specific  purposes  and  are  provisioned  by 
payments  from  the  EU  budget  so  as  to  provide  a  liquidity  cushion  against  potential  losses  from 
guaranteed operations on guarantees given by the EU budget to the EIB Group. The main new guarantee 
fund created in 2015 is the EFSI Guarantee Fund. 

EFSI is an initiative in order to increase the risk bearing capacity of the EIB Group which enables the EIB 
to invest up to EUR 61 billion in the EU. EFSI is not a separate legal entity or an investment fund in the 
strict  sense.  The  EFSI  risk  reserve  offers  protection  to  the  EIB  against  potential  losses  for  underlying 
operations.  It  is  composed  of  an  allocation  of  EUR 5 billion  of  EIB's  own  capital  and  an  EU  budget 
guarantee  of  up  to  EUR 16 billion  (cap  amount).  It  is  the  objective  that  additional  funding  of  Member 
States, national promotional banks and private investors would bring the investments in the EU to a total 
of EUR 315 billion. 

The EFSI operations are conducted within two windows: the Infrastructure and Innovation Window (IIW) 
implemented by the EIB and the SME Window (SMEW) implemented by the EIF, both of which will have a 
debt  portfolio  (EU  guarantee  of  EUR 12.25 billion)  and  an  equity  portfolio  (EU  guarantee  of 
EUR 3.75 billion). The EIF acts under an agreement with the EIB on the basis of an EIB guarantee which 
itself is counter-guaranteed by the EU. 

The  EU  and  the  EIB  have  distinct  roles  within  EFSI.  EFSI  is  established  within  the  EIB  who  finance  the 
operations  (debt  and  equity  investments)  and,  to  do  this,  borrow  the  necessary  funds  on  the  capital 
markets.  Regarding  the  IIW,  the  EIB  takes  the  investment  decisions  independently  and  manages  the 
operations in accordance with its rules and procedures, the same as applied to its own (risk) operations. 
In  order  to  ensure  that  investments  made  under  EFSI  remain  focused  on  the  specific  objective  of 
addressing  the  market  failures  which  hinder  investment  in  the  EU  and  that  they  are  eligible  for  the 
protection of the EU guarantee, a dedicated governance structure has been put in place. The investment 
committee of independent experts examines each project proposed by the EIB regarding its eligibility for 
the EU guarantee coverage. Once an operation is confirmed to be eligible, as EFSI guaranteed operation, 
the  decision  to  continue  with  the  project  and  its  management  is  then  subject to the  normal  EIB  project 
cycle and governance process. 

The role of the EU relates to the provision of the EU guarantee for part of the potential losses that the EIB 
may suffer from its investments in debt and equity instruments. Consequently, the EU does not intervene 
in the final selection and management of EFSI operations, does not invest money in the EFSI operations 
and  it  is  not  a  direct  contractual  party  to  the  underlying  instruments.  As  the  control  criteria  and 
accounting  requirements  for  consolidation  of  the  EU  accounting  rules  (and  IPSAS)  are  not  met,  the 
related assets are not accounted for in the consolidated annual accounts of the EU – see also note 5.2 of 
the consolidated financial statements.  

At all times, the EU guarantee is capped at EUR 16 billion and the aggregate net payments from the EU 
budget  shall  not  exceed  this  amount.  EU  guarantee  payments  would  be  made  by  a  newly  created 
guarantee  fund  which  provides  a  liquidity  cushion  against  potential  net  losses  (expected  losses  not 
covered  by  expected  revenues)  on  the  EFSI  guaranteed  operations.  The  EFSI  Guarantee  Fund  will  be 

16 

 
 
Annual accounts of the European Union 2015 

financed from the EU Budget as from 2016 onwards and will gradually reach EUR 8 billion by 2022, thus 
provisioning  50 %  of  the  maximum  EU  guarantee.  At  31 December 2015  EUR 1 350 million  has  been 
committed  to  and  will  be  paid  into  the  guarantee  fund  in  2016  (EUR 500 million)  and  2017 
(EUR 850 million)  and  is  included  in  the  amount  disclosed  as  RAL  in  note  5.3.1  of  the  consolidated 
financial statements.  

The following tables provide an overview of financial instruments used by the EU per MFF 

 MFF 2014-2020 

Equity instruments: 
COSME – Equity Facility for Growth 
Horizon 2020 InnovFin Equity Facility for R&I 

Guarantee instruments: 
COSME Loan Guarantee Facility 
Employment and Social Innovation 
Student Loan Guarantee Facility 
Horizon 2020 – InnovFin Loan & Guarantee Service for R&I 
Horizon 2020 – InnovFin SME Guarantee 
Natural Capital Financing Facility  
Private Finance for Energy Efficiency Instrument (PF4EE) 

Total  

Assets

Liabilities  Guarantees

EUR millions

39
108

146

125
10
16
638
294
12
12

(2) 
(2) 

(4) 

(43) 
(3) 
(1) 
(97) 
(22) 
- 
- 

*
*
*
(442)
(17)

1 107

1 253

(166) 

(170) 

(459)

(459)

MFF Prior to 2014 

Assets

Liabilities  Guarantees

Loan / Equity / Technical assistance instruments: 
Instrument of economic and financial cooperation under the 
Euro-Mediterranean partnership (MEDA) 
European Neighbourhood and Partnership Instrument (ENPI) 

Loan instruments: SME Support Loan 

Equity instruments:  
High Growth and Innovative SME Facility under Competitiveness 
& Innovation Framework Programme 
European Technology Start up Facility 1998 (ETF) 
Global Energy Efficiency and Renewable Energy Fund (GEEREF) 
Multi Annual Framework Programme Equity Facility 
Marguerite Fund 
European Progress Microfinance Facility (PMF) for employment 
and social inclusion  
European Energy Efficiency Fund  
Technology Transfer Pilot projects 

Guarantee instruments: 
SME Guarantee Facility under Competitiveness and Innovation 
Framework Programme (CIP SMEG) 
Loan Guarantee instrument for Ten-T Projects (LGTT) 
Multi Annual Program (MAP) for Enterprises 
Project Bond Initiative (PBI) 
European Progress Microfinance Mandate  
Risk Sharing Finance Facility (RSFF) 
SME Guarantee Facility 

Total  

* The risk taken by the EU is fully provisioned (i.e. included in liabilities). 

251

153

404

19

413

11
76
192
50
71

128
1

943

108

238
23
236
13
927
16

1 561

2 927

17 

(2) 

(4) 

(6) 

- 

- 
- 
- 
- 
- 

(22) 

(22) 

(215) 

(3) 
(35) 
(1) 
(11) 
(94) 
(16) 

(375) 

(403) 

 *

(209)
*
(220)
*
(845)
*

(1 274)

(1 274)

 
  
  
  
  
  
  
 
 
  
 
 
 
  
 
  
  
  
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
Annual accounts of the European Union 2015 

Related to more than one MFF 

Assets

Liabilities  Guarantees

EUR millions  

Equity instruments: 
European Fund for Southeast Europe (EFSE)  
Enterprise Expansion Fund under the Western Balkan 
Enterprise Development and Innovation Facility  
Enterprise Innovation Fund (EIF) under the Western Balkan 
Enterprise Development and Innovation Facility  
Green for Growth Fund to the Eastern Neighbourhood Region 
(SE4F) 
Microfinance Initiative for Asia Debt Fund 
MENA Fund for Micro-, Small and Medium Enterprises (SANAD)

Guarantee Instruments: 
Guarantee Facility under the Western Balkan Enterprise 
Development and Innovation Facility 

Guarantee Funds: 
Guarantee fund for external actions 
European Fund for Strategic Investment (EFSI) 

Total  

Overall Total 

* The risk taken by the EU is fully provisioned (i.e. included in liabilities). 

Loans granted from borrowed funds 

118

10

21

52

9
10
220

20

20

2 108
1
2 109
2 349

- 

- 

- 

- 

- 
- 
- 

(14) 

(14) 

(25) 
- 
(25) 
(39) 

*

(19 450)
(202)
(19 652)
(19 652)

6 529

(612) 

(21 385)

The  EU  is  empowered  by  the  EU  Treaty  to  undertake  borrowing  operations  to  mobilise  the  financial 
resources  necessary  to  fulfil  specific  mandates.  The  Commission,  acting  on  behalf  of  the  EU,  currently 
operates  three  main  programmes,  Macro-financial  assistance  (MFA),  Balance  of  Payments  (BOP) 
assistance  and  the  European  Financial  Stabilisation  Mechanism  (EFSM),  under  which  it  may  grant  loans 
and  the  capital  required  to  fund  the  EU  lending  is  raised  on  the  capital  markets  or  with  financial 
institutions.  During  2015,  Ireland  officially  requested  an  extension  of  its  first  EFSM  loan  repayment 
deadline. The EUR 5 billion instalment was divided into three new ones of EUR 2 billion, EUR 1 billion and 
EUR 2 billion,  with  maturities  falling  in  2023,  2029  and  2035,  respectively.  In  January  2016,  Portugal 
officially requested for the extension of its first EFSM loan repayment maturity due on 3 June 2016. The 
EUR 4.75 billion instalment was refinanced by three new tranches of EUR 1.5 billion, EUR 2.25 billion and 
EUR 1 billion, with maturities falling in 2023, 2031 and 2036, respectively. On 17 July 2015, a bridge loan 
was granted to Greece under the EFSM as a temporary loan prior to the loan agreement signed between 
Greece  and  the  European  Stability  Mechanism  (ESM).  The  first  and  sole  disbursement  occurred  on 
20 July 2015  and  was  fully  repaid  when  the  ESM  agreement  was  ratified  by  national  parliaments  of  the 
Euro area Member States. This reimbursement took place on 20 August 2015. 

Overview of loans granted from borrowed funds at nominal amounts 

BOP 

EFSM

EUR billions

Others*

TOTAL 

Hungary 

Latvia 

Romania 

Total 

Ireland 

Portugal  Greece 

Total 

Total

6.5 

3.1

8.4** 

18.0

22.5

26.0

7.2

55.7 

5.1

78.8

5.5 

- 

2.9

-

5.0 

13.4

- 

-

22.5

5.0

24.3

-

-

7.2

46.8 

12.2 

2.4

1.3

62.6

13.5

5.5 

2.9

5.0 

13.4

27.5

24.3

7.2

59.0 

3.6

76.0

(4.0) 

(2.2)

(1.5) 

(7.7)

(5.0)

-

(7.2)

(12.2) 

(0.1)

(20.0)

1.5 
MFA, Euratom and ECSC in liquidation.  
Including precautionary assistance. 

0.7

*  
**  

3.5 

5.7

22.5

24.3

0

46.8 

3.5

56.0

18 

Total granted 
Disbursed at 
31.12.2014 

Disbursed in 2015 
Total disbursed 
31.12.2015 
Loans repaid at 
31.12.2015 
Outstanding 
amount at 
31.12.2015 

 
  
  
  
 
 
 
 
 
 
  
 
 
 
 
 
Annual accounts of the European Union 2015 

4.5.  Liabilities 

EUR 226 billion liabilities on the 2015 consolidated balance sheet of the EU 

2%

28%

31%

Pension & other employee benefits

Borrowings

Payables

Accrued charges & deferred income

14%

25%

Other liabilities

The liability side consists primarily of four key items: The pension and other employee benefits liabilities, 
borrowings,  payables  and  accrued  charges.  The  biggest  change  as  compared  to  2014 is  the  increase  of 
accrued charges by almost EUR 12.4 billion due to the start of the implementation of the 2014-2020 MFF, 
where costs incurred are estimated since they have not yet been declared by the Member States. Another 
important  change  is  the  decrease  in  payables  by  about  EUR 12.5 billion  in  cohesion  due  to  a  lower 
submission of cost statements by Member States for the programming period 2007-2013. Another reason 
is a lower level of submission of cost claims due to the slow start of the 2014-2020 MFF caused by delays 
in Member States designation of management and control authorities. 

Total cost claims and invoices received and recognised as payables 

EUR millions

30 000

25 000

20 000

15 000

10 000

5 000

-

2013

2014

2015

The  excess  of  liabilities  over  assets  does  not  mean  that  the  EU  institutions  and  bodies  are  in  financial 
difficulties, rather it means that certain liabilities will be funded by future annual budgets. Many expenses 
are  recognised  under  accrual  accounting  rules  in  2015  although  they  may  be  actually  paid  in  2016  or 
later  and  funded  using  future  budgets  and  the  related  revenues  will  only  be  accounted  for  in  future 
periods.  The  most  significant  amounts  to  be  highlighted  are  the  EAGF  activities  (paid  in  2016)  and  the 
employee benefits (to be paid over the next 30 plus years).    

19 

 
 
 
Annual accounts of the European Union 2015 

5. 

PROTECTION OF THE EU BUDGET 

Financial corrections and recoveries overview for 2015 

An important consideration in implementing the EU budget is the need to ensure the proper prevention or 
detection and subsequent correction of system weaknesses leading to errors, irregularities and fraud. The 
Court provides in its annual report a statement of assurance on the legality and regularity of transactions 
underlying  the  annual  accounts,  as  well  as  the  material  level  of  error  in  payments.  The  statement  of 
assurance accompanies the EU annual accounts in its publication in the Official Journal. 

The Commission's protective actions mitigate the impact of these errors through two main mechanisms: 

(1)   preventive  mechanisms  (e.g.  ex-ante  controls,  interruptions  and  suspensions  of  payments); 

and 

(2)   corrective  mechanisms  (primarily  financial  corrections  imposed  on  or  agreed  with  Member 

States and, to a lesser extent, recoveries from recipients of EU payments). 

Under  the  shared  management  mode (agricultural  spending  and  structural  actions),  Member  States  are 
primarily  responsible  throughout  the  expenditure  life  cycle  for  ensuring  that  expenditure  paid  out  from 
the EU budget is legal and regular. 

The corrective actions, i.e. financial corrections and recoveries, arise following the supervision and checks 
made by both the Commission and also, in the case of shared management expenditure, Member States 
on  the  eligibility  of  expenditure  funded  by  the  EU  budget.  When  deciding  on  the  amount  of  a  financial 
correction  or  recovery,  the  Commission  takes  into  account  the  nature  and  seriousness  of  the  breach  of 
applicable  law  and  the  financial  implications  for  the  EU  budget,  including  cases  of  deficiencies  in 
management and control systems. Most corrections are done after payment. 

Financial corrections and recoveries process: 

Ex-post controls 
and audits 

In progress 

Confirmed

Implemented

Financial  corrections  and  recoveries  are  presented  at  two  main  stages  of  the  process.  Both  stages 
may take place in the same year or in different years: 

(1) Financial corrections and recoveries at confirmation stage: These amounts have been either 
agreed by the Member State concerned or adopted by a Commission decision. In 2015, the total 
financial  corrections  and  recoveries  confirmed  amounted  to  EUR 3 499 million  (2014: 
EUR 4 728 million). 

Financial corrections and recoveries confirmed in 2015 - breakdown per policy areas 

EUR millions

99

8

326

5

132

349

462

1 040

253

826

20 

EAGF

Rural Development

ERDF

Cohesion Fund

ESF

FIFG/EFF

EAGGF Guidance

Internal policies

External policies

Administration

 
 
 
Annual accounts of the European Union 2015 

(2) Financial corrections and recoveries at implementation stage: These amounts represent the 
final  step  of  the  process  whereby  the  observed  situation  of  undue  expenditure  is  definitively 
corrected.  Several  implementation  mechanisms  are  foreseen  in  the  sector-based  regulatory 
frameworks. In 2015, the total financial corrections and recoveries implemented amounted 
to EUR 3 853 million (2014: EUR 3 285 million). The implementation of financial corrections and 
recoveries  may  take  a  number  of  years  mainly  due  to  instalment  or  deferral decisions  granted  to 
Member  States  under  the  agricultural  policy.  Under  the  Cohesion  policy  the  legal  framework 
foresees the implementation at or after the closure of the programming period.  

Financial corrections and recoveries implemented in 2015 - breakdown per policy areas 

EUR millions

5

1626

136

317

1 173

414

407

585

774

EAGF

Rural Development

ERDF

Cohesion Fund

ESF

FIFG/EFF

EAGGF Guidance

Internal policies

External policies

Administration

The above information is a supplementary disclosure that is not required by the accounting standards and 
includes  data  which  is  not  always  drawn  directly  from  the  accounting  system.  More  details  on  these 
figures and on the preventive and corrective mechanisms can be found in the annual Communication on 
the protection of the EU budget prepared by the Commission and sent to the Discharge Authority and the 
Court – this is available on the Europa website of the Directorate-General for Budget. 

6.  Management of risks and uncertainties in EU 

budget implementation 

Risks and uncertainties of EU budget implementation can be divided into two main categories: 

•  General and expected risks and uncertainties; and 

• 

Exceptional risks and uncertainties. 

6.1.  General and expected risks and uncertainties 

Issues encountered during the financial year 

Macro-economic environment 

The  macro-economic  environment  of  the  EU  has  an  impact  on  the  ability  of  EU  Member  states  to  meet 
their  funding  obligations  towards  the  EU  institutions  and  bodies  and  thus  on  the  ability  of  the  EU  to 
continue  implementing  EU  policies  as  highlighted  in  section  2  above.  The  European  economy  remains 
supported by a number of positive factors such as oil prices, the euro’s exchange rate and financing costs 
which  have  stimulated  exports  and  private  consumption.  Investment,  however,  remains  hampered  by 
economic and policy uncertainty and in some countries, excessive debt. Now, as it enters its fourth year 
of  recovery,  the  European  economy  is  facing  headwinds  and  substantial  risks  from  the  slowdown  in 
emerging economies.  Economic  growth  strong  enough  to  reduce  unemployment  substantially  has  so  far 
failed to materialise and evidence of a reinvigoration of investment, which is crucial for the sustainability 
of  the  recovery,  remains  limited.  In  addition,  the  pace  of  implementation  of  the  EU  budget  under  the 

21 

 
 
 
Annual accounts of the European Union 2015 

2014-2020 MFF is rather slow and the continued issues with Greece and the refugee crisis complements 
this overall picture. 

The  euro  area’s  economic  recovery  remains  moderate  despite  the  substantial  support  from  the  positive 
factors described above that are now likely to be somewhat stronger and longer lasting than previously 
expected.  In  particular,  driven  mainly  by  abundant  supply,  the  oil  price  has  slipped  again  and  is  now 
assumed  to  remain  markedly  lower  and  to  rebound  later.  Fiscal  policy  in  the  euro  area  is  becoming 
slightly more supportive to growth, largely due to government expenditures associated with the inflow of 
asylum  seekers  in  some  Member  States.  Additionally,  the  combination  of  quantitative  easing  and  credit 
easing by the European Central Bank (ECB) mean that financing costs in the euro area should remain low 
for  a  longer  period  of  time  than  earlier  expected  and  will  further  help  to  reduce  financial  fragmentation 
and  differences  among  Member  States.  Meanwhile,  the  boost  from  these  factors  is  increasingly  being 
offset by a worsening global environment, and some legacy issues from the crisis (mainly high levels of 
policy uncertainty, debt and unemployment) continue to weigh on growth. 

Real GDP (forecast), inflation rate and unemployment rate in %, per EU average1 

Real GDP 

Inflation 

Unemployment rate 

2015 

2016 

2017 

2015

2016

2017

2015 

2016 

2017

Belgium 

Germany 

Estonia 

Ireland 

Greece 

Spain 

France 

Italy 

Cyprus 

Latvia 

Lithuania 

Luxembourg 

Malta 

Netherlands 

Austria 

Portugal 

Slovenia 

Slovakia 

Finland 

Euro area 

Bulgaria 

Czech Republic 

Denmark 

Croatia 

Hungary 

Poland 

Romania 

Sweden 

United Kingdom 

1.3 

1.7 

0.9 

6.9 

0.0 

3.2 

1.1 

0.8 

1.4 

2.7 

1.6 

4.7 

4.9 

2.0 

0.7 

1.5 

2.5 

3.5 

0.0 

1.3 

1.8 

2.1 

4.5 

(0.7) 

2.8 

1.3 

1.4 

1.5 

3.1 

2.9 

3.8 

3.9 

2.1 

1.7 

1.6 

1.8 

3.2 

0.5 

1.7 

1.8 

2.3 

3.5 

2.7 

2.5 

1.7 

1.3 

2.0 

3.2 

3.4 

4.4 

3.4 

2.3 

1.6 

1.8 

2.3 

3.4 

0.9 

1.6 

1.7 

1.9 

2.2 

4.5 

1.2 

1.8 

2.7 

3.5 

3.6 

3.6 

2.3 

1.5 

2.3 

1.7 

2.1 

2.1 

3.5 

4.2 

3.2 

2.1 

2.0 

2.7 

1.9 

2.1 

2.5 

3.5 

3.7 

2.9 

2.1 

EU 

1.9 

1.9 

2.0 

0.6 

0.1 

0.1 

0.0 

(1.1) 

(0.6) 

0.1 

0.1 

(1.6) 

0.2 

(0.7) 

0.1 

1.2 

0.2 

0.8 

0.5 

(0.8) 

(0.3) 

(0.2) 

0.0

(1.1) 

0.3 

0.2 

(0.3) 

0.1 

(0.7) 

(0.4) 

0.7 

0.0 

0.0

1.4 

0.5 

1.0 

0.6 

0.5 

0.1 

0.6 

0.3 

0.2 

0.4 

(0.1) 

0.4 

1.7 

0.9 

0.9 

0.7 

(0.3) 

0.3 

0.1 

0.5

(0.1) 

0.4 

0.9 

0.3 

1.7 

0.6 

(0.2) 

1.1 

0.8 

0.5

1.7 

1.5 

2.5 

1.4 

0.8 

1.5 

1.3 

1.8 

1.3 

2.0 

2.1 

2.4 

2.1 

1.5 

1.8 

1.1 

1.1 

1.7 

1.5 

8.3 

4.8 

6.3 

9.4 

25.1 

22.3 

10.5 

11.9 

15.5 

9.9 

9.0 

6.1 

5.4 

6.9 

6.0 

12.6 

9.1 

11.5 

9.5 

8.0 

4.9 

6.3 

8.5 

24.0 

20.4 

10.5 

11.4 

14.5 

9.2 

8.0 

6.0 

5.4 

6.6 

6.2 

11.7 

8.8 

10.3 

9.4 

7.4 

5.2 

7.5 

7.8 

22.8 

18.9 

10.3 

11.3 

13.2 

8.6 

7.2 

6.0 

5.4 

6.4 

6.4 

10.8 

8.4 

9.3 

9.3 

1.5

11.0 

10.5 

10.2

0.9 

1.4 

1.7 

1.6 

2.5 

1.7 

2.5 

1.4 

1.6 

10.1 

5.1 

6.0 

16.2 

6.7 

7.5 

6.7 

7.4 

5.2 

9.4 

4.8 

5.8 

8.8 

4.7 

5.6 

15.1 

13.8 

6.0 

7.0 

6.6 

6.9 

5.0 

5.2 

6.5 

6.5 

6.7 

4.9 

1.6

9.5 

9.0 

8.7

1 Source: European Commission "European Economic Forecast Winter 2016." 

22 

 
                                                 
Annual accounts of the European Union 2015 

GDP in the euro area is forecast to accelerate slightly from 1.6 % in 2015 to 1.7 % in 2016. Once global 
economic activity starts to rebound, positive effects should be felt later in 2016 and 2017. Also, some of 
the  structural  reforms  implemented  in  Member  States  should  continue  to  have  a  positive  impact  on 
growth. As legacies of the crisis recede, consumption and investment should benefit. Although debt levels 
remain  high  in  some  parts  of  the  economy,  easy  financing  conditions  should  limit  acute  deleveraging 
pressures.  Overall,  euro  area  GDP  growth  should  pick  up  further  to  1.9 %  in  2017.  In  2016,  Member 
States  should  continue  moving  along  a  recovery  path,  including  Greece,  where  growth  is  set  to pick  up 
again in the course of the year. The Investment Plan for Europe has been established to help overcome 
the  current  investment  gap  in  the  EU  by  mobilising  private  financing  for  strategic  investments  in  key 
areas and should also start to have a positive impact on public and private investment. In 2017 economic 
activity should be on the rise in all Member States.  

In 2015, the general government deficit in the euro area is expected to have declined to 2.2 % of GDP 
and is set to decrease further to 1.9 % and 1.6 % in 2016 and 2017 respectively. Next year, under a no 
policy-change  assumption,  the  structural  balance is projected to  remain  broadly  stable  in  both  the  euro 
area and the EU. The debt-to-GDP ratio of the euro area is forecast to decline from its peak of 94.5 % in 
2014 to 91.3 % in 2017. 

The  improvement  in  labour  market  conditions  continues  with  the  moderate  economic  recovery 
underpinning  a  modest  rise  in  employment  growth.  Overall,  employment  is  expected  to  have  risen  by 
1.1 % in the euro area in 2015 and is projected to continue at about the same speed this year and next 
on  the  back  of  strengthening  economic  activity,  improved  business  confidence  and  higher  capital 
accumulation.  

The economic outlook for the euro area remains highly uncertain and overall risks are clearly tilted to the 
downside. Risks to the growth outlook from the global economy and global financial markets have clearly 
increased,  in  particular  due  to  the  slowing  growth  in  China  and  other  emerging  markets,  which  could 
trigger stronger spillovers than envisaged or which could become worse than forecast. Combined with the 
uncertainty regarding the adjustment in China, the  continuation of monetary policy normalisation in the 
US could have a more negative impact on vulnerable emerging market economies, especially those with 
high levels of foreign currency denominated debt, and could also affect the stability of financial markets. 
The  materialisation  of  any  of  these  downside  risks  would  result  in  negative  spillovers  to  the  Member 
States  via  various  transmission  channels.  In  Europe,  domestic  risks  have  also  increased  lately.  Any 
unexpected  relapse  into  crisis  in  Greece  could  weigh  more  heavily  on  investment  decisions  and  thus  on 
economic growth. Moreover, if major political challenges were not successfully addressed at the EU level 
(e.g. handling of migration flows), that could trigger developments that become impediments to growth. 

Guarantee Funds for guarantees given 

The EU has given guarantees to the EIB Group on loans granted outside of the EU and on EFSI debt and 
equity operations. At 31 December 2015, the EU shows in the notes to the financial statements (see note 
5.2.1)  contingent  liabilities  for  both  guarantees  of  EUR 19.7 billion.  In  order  to  mitigate  the  risk 
guarantee calls by the EIB could have on the EU budget, the Commission has created separate guarantee 
funds, i.e. the Guarantee Fund for External Actions and the EFSI Guarantee Fund. 

The  Guarantee  Fund  for  external  actions  is  provisioned  by  the  EU  budget  so  as  to  cover  9 %  of  the 
guaranteed loans outstanding at year-end. At 31 December 2015 the total asset value of EUR 2.1 billion 
covers a maximum exposure of the EU of EUR 19.45 billion. The EFSI Guarantee Fund will as from 2016 
onwards gradually reach EUR 8 billion by 2022, thus provisioning 50 % of the maximum exposure of the 
EU guarantee of EUR 16 billion. 

Borrowing and lending operations 

The  EU  is  empowered  by  the  EU  Treaty  to  undertake  borrowing  operations  to  mobilise  the  financial 
resources  necessary  to  fulfil  specific  mandates.  The  Commission,  acting  on  behalf  of  the  EU,  currently 
operates  three  main  programmes,  Macro-financial  assistance  (MFA),  Balance  of  Payments  (BOP) 
assistance  and  the  European  Financial  Stabilisation  Mechanism  (EFSM),  under  which  it  may  grant  loans 
and  the  capital  required  to  fund  the  EU  lending  is  raised  on  the  capital  markets  or  with  financial 
institutions. EU borrowing and lending activities are non-budget operations. In general, funds raised are 
on-lent  back-to-back  to  the  beneficiary  country,  i.e.  with  the  same  coupon,  maturity  and  amount. 
Notwithstanding  the  back-to-back  methodology,  the  debt  service  of  the  funding  instruments  is  a  legal 
obligation of the EU, which will ensure that all payments are made fully and in a timely manner. 

The Commission has, so as to mitigate the risk of not being able to repay the borrowings, put procedures 
in  place  to  ensure  the  repayment  of  borrowings  even  in  case  of  a  loan  default.  For  each  country 
programme,  the  EP,  the  Council  and  the  Commission  decisions  determine  the  overall  granted  amount, 
the (maximum) number of instalments to be disbursed, and the maximum (average) maturity of the loan 

23 

 
Annual accounts of the European Union 2015 

package.  Subsequently,  the  Commission  and  the  beneficiary  country  agree  loan/funding  parameters, 
including instalments and the payment of tranches. In addition, except for the first one, all instalments of 
the  loan  depend  on  compliance  with  strict  conditions,  with  agreed  terms  and  conditions  similar  to 
International Monetary Fund (IMF) support, in the context of a joint EU/IMF financial assistance, which is 
another factor influencing the timing of funding. This implies that the timing and maturities of issuances 
are  dependent  on  the  related  EU  lending  activity.  Funding  is  exclusively  denominated  in  euro  and  the 
maturity spectrum is from 3 to 30 years. 

The  following  table  provides  an  overview  of  the  planned  reimbursement  schedule  in  nominal  value  for 
outstanding EFSM and BOP loan amounts at the date of signature of these accounts: 

BOP 

EFSM 

Hungary 

Latvia  Romania 

Total

Ireland Portugal

Total 

1.15 

1.35 

1.0 

1.15

1.35

1.5

0.5 

3.9

0.6

4.5 

3.0

6.75

9.75 

0.2 

0.2

EUR billions

TOTAL

1.15

5.85

1.5

9.75

2.7

3.5

2.6

0.2

4.0

3.0

2.3

1.4

2.7 

3.5 

2.6 

4.0 

3.0 

2.3 

1.4 

2.25 

2.25

3.0 

2.0 

1.0 

1.8 

3.0 

3.0

2.0

1.0

1.8

3.0

2.7

1.5

1.8

2.0

2.0

0.4

2.25

1.0

1.8

1.5

2.0

0.8

2.0

1.0

2.3

1.0

3.0

2.0

1.5

22.5

2017 

2018 

2019 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2031 

2032 

2035 

2036 

2038 

2042 

Total 

0 

0.7 

3.5 

4.2

24.3

46.8 

51.0

Borrowings of the EU constitute direct and unconditional obligations of the EU and are guaranteed by the 
28 Member States. Borrowings undertaken to fund loans to countries outside the EU are covered by the 
Guarantee Fund for external actions. Should a beneficiary Member State default, the debt service will be 
drawn from the available treasury balance of the Commission, if possible. If that would not be possible, 
the Commission would draw the necessary funds from the Member States. EU Member States are legally 
obliged,  according  to  the  EU  own  resources  legislation  (Article  12  of  Council  Regulation  1150/2000),  to 
make  available  sufficient  funds  to  meet  the  EU’s  obligations.  Thus  investors  are  only  exposed  to  the 
credit risk of the EU, not to that of the beneficiary of loans funded. “Back-to-back” lending ensures that 
the EU budget does not assume any interest rate or foreign exchange risk. 

The  Inter-governmental  financial  stability  mechanisms  European  Financial  Stability  Facility  (EFSF)  and 
European  Stability  Mechanism  (ESM)  are  outside the  EU  Treaty  framework  and  thus  not  included  in the 
consolidated annual accounts of the EU. 

24 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

6.2.  Exceptional risks and uncertainties 

Every  year  the  EU  is  exposed  to  unexpected  risks  and  uncertainties  and  it  is  the  objective  of  the  EU 
institutions and bodies to find rapid solutions to issues encountered during the year. In the financial year 
2015,  the  refugee  crisis,  the  difficulties  of  European  farmers  and  the  situation  as  regards  unpaid  cost 
claims  and  invoices  received  at  year-end  were  the  most  significant  risks  and  uncertainties  to  be  dealt 
with. 

Managing the refugee crisis 

Over  the  last  six  months,  the  European  Commission  has  worked  for  a  swift,  coordinated  European 
response to the risks and uncertainties related to the refugee crisis, tabling a series of proposals designed 
to  equip  Member  States  with  the  tools  necessary  to  better  manage  the  large  number  of  arrivals.  From 
tripling  the  presence  at  sea;  through  a  new  system  of  emergency  solidarity  to  relocate  asylum  seekers 
from  the  most  affected  countries;  via  an  unprecedented  mobilisation  of  the  EU  budget  of  over 
EUR 10 billion  to  address  the  refugee  crisis  and  assist  the  countries  most  affected;  providing  a  new 
coordination  and  cooperation  framework  for  the  Western  Balkan  countries;  starting  a  new  partnership 
with  Turkey;  all  the  way  to  an  ambitious  proposal  for  a  new  European  Border  and  Coast  Guard,  the 
European Union is bolstering Europe's asylum and  migration policy to deal with the new challenges it is 
facing.  Despite  these  measures  taken,  uncertainty  surrounding  the  strong inflow  of  asylum  seekers  and 
its economic impact remains high. 

As  a  first  and  immediate  step,  the  Commission  reinforced  funding  for  the  years  2015  and  2016  of 
Frontex,  Europol  and  EASO  (EUR 170 million)  and  has  increased  financial  contributions  to  the  Asylum, 
Migration and Integration Fund (AMIF) and the Internal Security Fund (ISF) from initially EUR 2 billion to 
EUR 3.7 billion. Immediate financial support for activities related to the refugee crisis outside the EU led 
to  an  increase  in  Humanitarian  aid  (EUR 2.2 billion),  the  creation  of  the  EU  Trust  Fund  for  Syria 
(EUR 500 million), the creation of the EU Emergency Trust Fund for Africa (EUR 1.8 billion), the creation 
of  the  refugee  facility  in  Turkey  (EUR 1 billion)  and  other  measures  relating  to  security  and  boarder 
control (EUR 300 million), counter terrorism (EUR 100 million) and to the return of displaced persons and 
refugees (EUR 280 million).  

Support package for European farmers 

The  general  political  and  market  environment  during  the  financial  year  2015  led  to  difficulties  for 
European farmers concerning their cashflow situation and linked to increasingly instable markets. These 
difficulties  created  risks  not  only  to  European  farmers  but  also  to  the  EU  institutions  as  regards  their 
successful  implementation  of  the  Common  Agricultural  Policy.  The  Commission  has  reacted  to  this 
situation by mobilising EUR 420 million of substantial aid to address problems in the coming years in the 
dairy and pigmeat sectors. In addition, other measures such as the introduction of new Private Storage 
Aid  schemes  for  dairy  and  pigmeat  and  the  possibility  of  advancing  direct  payments  to  farmers  were 
introduced. In total, the measures taken in 2015 bring the overall package (future budgets) to European 
farmers to about EUR 500 million. This immediate response demonstrates that the Commission takes its 
responsibility towards farmers very seriously and is prepared to back it up with the appropriate funds. 

25 

 
 
 
Annual accounts of the European Union 2015 

Cost claims and invoices to be paid 

The issue in 2015 as regards cost claims and invoices to be paid were: 

• 

• 

the  unexpected  pace  of  submission  of  cost  claims  and  invoices  which  were  not  in  line  with 
forecasts and so the EU institutions had to adapt to the payment needs; and  

the  lack  of  payment  appropriations  at  year-end  to  pay  cost  claims  and  invoices  received  which 
needed to be financed via amending budgets. 

After  several  years  of  a  persistent  pressure  on  payment  appropriations,  the  financial  year  2015  saw  a 
significant improvement with regard to payments. The amount of cost claims and invoices to be paid at 
year-end decreased from EUR 25.8 billion in 2014 to EUR 15.2 billion at the end of 2015. The major part 
of this decrease relates to the previous programming periods of cohesion policy since the amount of cost 
claims  and  invoices  to  be  paid  for  the  2014-2020  programmes  was  negligible  at  the  end  of  2014  and 
2015.  

Within the Commission, short-term cashflow forecasting is done weekly (sometimes daily) to ensure that 
the  immediate  payment  obligations  of  the  EU  can  be  met,  respecting  the  limits  of  the  payment 
appropriations available in the budget. This short term forecast is the basis used to estimate the amount 
of  own  resources  to  be  called  monthly  from  Member  States.  On  the  first  working  day  of  each  month 
Member States must credit to the Commission’s own resource accounts one-twelfth of the total amount 
of the VAT and GNI-based resource entered in the Union's budget. Depending on the Commission's cash 
position,  Member  States  may  be  asked  in  the  first  quarter  of  the  year  to  bring  forward,  by  one  or  two 
months, the VAT and GNI based resources. Those advances have to be deducted from calls for funds in 
later months, depending on the forecasted cash needs.  

For the medium and long-term, the Commission monitors in detail the payment requirements of the EU 
as part of its regular activities. For example, this is required for the preparation of Commission proposals 
on  the  MFF,  as  part  of  the  annual  budget  preparation  and  when  preparing  amending  budgets.  In  the 
negotiation phase of the MFF, the models used and the assumptions underlying are monitored regularly 
and  updated  when  necessary.  The  results  of  the  models  are  channelled into  the  budgetary  negotiations 
establishing the MFF payment ceiling. 

Event after the balance sheet date – Referendum in the United Kingdom 

On 23 June 2016, the citizens of the United Kingdom voted to leave the European Union. To give effect to 
this  decision  of  the  British  people,  Article  50  of  the  Treaty  on  European  Union  must  be  invoked.  This 
article sets out the procedure to be followed if a Member State decides to leave the European Union, and 
only when this article is activated can the negotiations on the departure of the United Kingdom begin. In 
accordance  with  the  guidelines  provided  by  the  European  Council,  the  Union  shall  then  negotiate  and 
conclude an agreement with the United Kingdom, setting out the arrangements for its withdrawal, taking 
account  of  the  framework  for  its  future  relationship  with  the  Union.  At  the  time  of  the  signing  of  these 
accounts, formal notification of the triggering of Article 50 has not been presented. 

26 

 
 
 
Annual accounts of the European Union 2015 

NOTE ACCOMPANYING THE 
CONSOLIDATED ACCOUNTS 

The  consolidated  annual  accounts  of  the  European  Union  for  the  year  2015  have  been  prepared  on  the 
basis  of  the  information  presented  by  the  institutions  and  bodies  under  Article  148(2)  of  the  Financial 
Regulation  applicable  to  the  general  budget  of  the  European  Union.  I  hereby  declare  that  they  were 
prepared in accordance with Title IX of this Financial Regulation and with the accounting principles, rules 
and methods set out in the notes to the financial statements. 

I have obtained from the accounting officers of these institutions and bodies, who certified its reliability, 
all  the  information  necessary  for  the  production  of  the  accounts  that  show  the  European  Union's  assets 
and liabilities and the budgetary implementation. 

I hereby certify that based on this information, and on such checks as I deemed necessary to sign off the 
accounts of the European Commission, I have a reasonable assurance that the accounts present fairly, in 
all  material  aspects,  the  financial  position,  the  results  of  the  operations  and  the  cashflows  of  the 
European Union. 

[signed] 

Manfred Kraff 

Accounting Officer of the Commission 

8 July 2016 

27 

 
 
 
 
 
 
Annual accounts of the European Union 2015 

28 

 
 
Annual accounts of the European Union 2015 

EUROPEAN UNION 
FINANCIAL YEAR 2015 

CONSOLIDATED FINANCIAL STATEMENTS 
AND EXPLANATORY NOTES 

It should be noted that due to the rounding of figures into millions of euros, some financial data in the 
tables below may appear not to add-up. 

29 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

30 

 
 
Annual accounts of the European Union 2015 

CONTENTS 

BALANCE SHEET .......................................................................................................... 32 

STATEMENT OF FINANCIAL PERFORMANCE ..................................................................... 33 

CASHFLOW STATEMENT ............................................................................................... 34 

STATEMENT OF CHANGES IN NET ASSETS ...................................................................... 35 

NOTES TO THE FINANCIAL STATEMENTS ........................................................................ 37 

1. 
2. 
3. 
4. 
5. 
6. 
7. 
8. 
9. 

SIGNIFICANT ACCOUNTING POLICIES ................................................................ 38 
NOTES TO THE BALANCE SHEET ......................................................................... 50 
NOTES TO THE STATEMENT OF FINANCIAL PERFORMANCE .................................... 73 
NOTES TO THE CASHFLOW STATEMENT .............................................................. 80 
CONTINGENT ASSETS & LIABILITIES AND OTHER SIGNIFICANT DISCLOSURES ........ 81 
FINANCIAL RISK MANAGEMENT ......................................................................... 86 
RELATED PARTY DISCLOSURES ......................................................................... 97 
EVENTS AFTER THE BALANCE SHEET DATE .......................................................... 99 
SCOPE OF CONSOLIDATION .............................................................................100 

31 

 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

BALANCE SHEET 

NON-CURRENT ASSETS 
Intangible assets 
Property, plant and equipment 
Investments accounted for using the equity method 
Financial assets 
Pre-financing 
Exchange receivables and non-exchange recoverables 

CURRENT ASSETS 
Financial assets 
Pre-financing 
Exchange receivables and non-exchange recoverables 
Inventories 
Cash and cash equivalents  

TOTAL ASSETS 

NON-CURRENT LIABILITIES 
Pension and other employee benefits 
Provisions 
Financial liabilities 

CURRENT LIABILITIES 
Provisions 
Financial liabilities 
Payables 
Accrued charges and deferred income 

TOTAL LIABILITIES 

NET ASSETS 

Reserves 
Amounts to be called from Member States* 
NET ASSETS 

Note 

31.12.2015 

31.12.2014 

 EUR millions 

2.1 
2.2 
2.3 
2.4 
2.5 
2.6 

2.4 
2.5 
2.6 
2.7 
2.8 

2.9 
2.10 
2.11 

2.10 
2.11 
2.12 
2.13 

2.14 
2.15 

 337 
8 700 
 497 
56 965 
29 879 
 870 

97 248 

9 907 
15 277 
9 454 
 138 
21 671 

56 448 
153 696 

(63 814) 
(1 716) 
(51 764) 

 282 
7 937 
 409 
56 438 
18 358 
1 198 

84 623 

11 811 
34 237 
14 380 
 128 
17 545 

78 101 
162 724 

(58 616) 
(1 537) 
(51 851) 

(117 293) 

(112 005) 

 (314) 
(7 939) 
(32 191) 
(68 402) 

(108 846) 
(226 139) 

 (745) 
(8 828) 
(43 180) 
(55 973) 

(108 726) 
(220 730) 

(72 442) 

(58 006) 

4 682 
(77 124) 
(72 442) 

4 435 
(62 441) 
(58 006) 

* The European Parliament adopted a budget on 25 November 2015 which provides for the payment of the Union's short-term liabilities 
from  own  resources  to  be  collected  by,  or  called  up  from,  the  Member  States  in  2016.  Additionally,  under  Article  83  of  the  Staff 
Regulations  (Council  Regulation  259/68  of  29 February  1968  as  amended),  the  Member  States  shall  jointly  guarantee  the  liability  for 
pensions. 

32 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

STATEMENT OF FINANCIAL PERFORMANCE 

Note 

2015 

2014    

EUR millions 

REVENUE 
Revenue from non-exchange transactions 
GNI resources 
Traditional own resources 
VAT resources 
Fines 
Recovery of expenses 
Other 
  Sub-total 

Revenue from exchange transactions 
Financial income 
Other 
  Sub-total 

Total Revenue 

EXPENSES* 
Implemented by Member States 

European Agricultural Guarantee Fund 
European Agricultural Fund for Rural Development 
and other rural development instruments 
European Regional Development Fund and            
Cohesion Fund 
European Social Fund 
Other 

Implemented by the Commission, executive agencies 
and trust funds 
Implemented by other EU agencies and bodies 
Implemented by third countries and international 
organisations 
Implemented by other entities 
Staff and pension costs 
Changes in employee benefits actuarial assumptions 
Finance costs 
Share of net deficit of joint ventures and associates 
Other expenses 

Total Expenses 
ECONOMIC RESULT OF THE YEAR 

3.1 
3.2 
3.3 
3.4 
3.5 
3.6 

3.7 
3.8 

3.9 

3.10 

3.11 
3.11 

3.11 
3.12 
3.13 
3.14 
3.15 
3.16 

95 355 
18 649 
18 328 
 531 
1 547 
5 067 
139 478 

1 846 
1 562 
3 408 

104 688 
17 137 
17 462 
2 297 
3 418 
5 623 
150 625 

2 298 
1 066 
3 364 

142 886 

153 989 

(45 032) 
(16 376) 

(44 465) 
(14 046) 

(38 745) 

(43 345) 

(9 849) 
(2 380) 
(15 626) 

(1 209) 
(3 031) 

(2 107) 
(10 273) 
(2 040) 
(1 986) 
 (641) 
(6 623) 

(12 651) 
(2 307) 
(15 311) 

(1 025) 
(2 770) 

(1 799) 
(9 662) 
(9 170) 
(2 926) 
 (640) 
(5 152) 

(155 919) 
(13 033) 

(165 269) 
(11 280) 

*  

Implemented by Member States: Shared management 

Implemented by the Commission, executive agencies and trust funds: Direct Management 

Implemented by other EU agencies and bodies, third countries, international organisations and other 
entities: Indirect management. 

33 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

CASHFLOW STATEMENT 

Note 

4.2 

Economic result of the year 
Operating activities 
Amortisation 
Depreciation 
(Increase)/decrease in loans 
(Increase)/decrease in pre-financing 
(Increase)/decrease in exchange receivables and non-
exchange recoverables 
(Increase)/decrease in inventories 
Increase/(decrease) in pension and employee benefits 
liability 
Increase/(decrease) in provisions 
Increase/(decrease) in financial liabilities 
Increase/(decrease) in payables 
Increase/(decrease) in accrued charges and deferred 
income 
Prior year budgetary surplus taken as non-cash 
revenue 
Other non-cash movements 

Investing activities 
(Increase)/decrease in intangible assets and property, 
plant and equipment  
(Increase)/decrease in investments accounted for 
using the equity method 
(Increase)/decrease in available for sale financial 
assets 

4.3 

2015 
(13 033) 

 74 
 489 
1 591 
7 439 
5 253 

 (10) 
5 198 

 (253) 
 (977) 
(10 989) 
12 429 

EUR millions 

2014 
(11 280) 

 61 
 408 
(1 298) 
6 844 
(1 898) 

- 
11 798 

 414 
1 146 
6 967 
 (309) 

(1 435) 

(1 005) 

 32 

 130 

(1 381) 

(2 347) 

 (87) 

 (213) 

 (60) 

(1 536) 

NET CASHFLOW 

4 126 

8 035 

Net increase/(decrease) in cash and cash equivalents 
Cash and cash equivalents at the beginning of the 
year 
Cash and cash equivalents at year-end 

2.8 

2.8 

4 126 
17 545 

21 671 

8 035 
9 510 

17 545 

34 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENT OF CHANGES IN NET ASSETS 

Annual accounts of the European Union 2015 

Reserves (A) 

Amounts to be called from Member 
States (B) 

BALANCE AS AT 31.12.2013 
Movement in Guarantee Fund reserve 
Fair value movements 
Other 
Allocation of the 2013 economic result 
2013 budget result credited to Member States 
Economic result of the year 
BALANCE AS AT 31.12.2014 
Movement in Guarantee Fund reserve 
Fair value movements 
Other 
Allocation of the 2014 economic result 
2014 budget result credited to Member States 
Economic result of the year 
BALANCE AS AT 31.12.2015 

Accumulated 
Surplus/(Deficit) 
(45 560) 
 (247) 
– 
 16 
(4 365) 
(1 005) 
– 
(51 161) 
 (189) 
– 
 (24) 
(11 283) 
(1 435) 
– 
(64 091) 

Economic result 
of the year 

(4 365) 
– 
– 
– 
4 365 
– 
(11 280) 
(11 280) 
– 
– 
– 
11 280 
– 
(13 033) 
(13 033) 

Fair value reserve

Other reserves 

3 974 
 247 
– 
 (24) 
 (0) 
– 
– 
4 197 
 189 
– 
 2 
 3 
– 
– 
4 390 

 99 
– 
 139 
– 
– 
– 
– 
 238 
– 
 54 
– 
– 
– 
– 
 292 

35 

EUR millions 

Net Assets 
=(A)+(B) 

(45 852) 
– 
 139 
 (8) 
– 
(1 005) 
(11 280) 
(58 006) 
– 
 54 
 (22) 
– 
(1 435) 
(13 033) 
(72 442) 

 
  
 
 
 
 
 
Annual accounts of the European Union 2015 

36 

 
 
 
Annual accounts of the European Union 2015 

NOTES TO THE FINANCIAL STATEMENTS 

37 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

1. 

SIGNIFICANT ACCOUNTING POLICIES 

1.1.  LEGAL BASIS AND ACCOUNTING RULES 

The  accounts  of  the  EU  are  kept  in  accordance  with  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  Union  and  repealing  Council  Regulation  (EC,  Euratom)  No 1605/2002  (OJ L 298, 
26.10.2012,  p. 1)  hereinafter  referred  to  as  the  'Financial  Regulation'  and  Commission  Delegated 
Regulation  (EU)  No  1268/2012  of  29 October 2012  (OJ L 362,  31.12.2012,  p. 1)  laying  down  detailed 
rules of application of this Financial Regulation. 

In accordance with article 143 of the Financial Regulation, the EU prepares its financial statements on the 
basis  of  accrual-based  accounting  rules  that  are  based  on  International  Public  Sector  Accounting 
Standards (IPSAS). These accounting rules, adopted by the Accounting Officer of the Commission, have 
to  be  applied  by  all  the  institutions  and  EU  bodies  falling  within  the  scope  of  consolidation  in  order  to 
establish a uniform set of rules for accounting, valuation and presentation of the accounts with a view to 
harmonising the process for drawing up the financial statements and consolidation. The accounts are kept 
in Euro on the basis of the calendar year. 

1.2.  ACCOUNTING PRINCIPLES 

The  objective  of  the  financial  statements  is  to  provide  information  about  the  financial  position, 
performance  and  cashflows  of  an  entity  that  is  useful  to  a  wide  range  of  users.  For  the  EU  as  a  public 
sector entity, the objectives are more specifically to provide information useful for decision making, and 
to demonstrate the accountability of the entity for the resources entrusted to it. It is with these goals in 
mind that the present document has been drawn up.  

The  overall  considerations  (or  accounting  principles)  to  be  followed  when  preparing  the  financial 
statements  are  laid  down  in  EU  accounting  rule  1  "Financial  Statements"  and  are  the  same  as  those 
described in IPSAS 1, that is: fair presentation, accrual basis, going concern, consistency of presentation, 
aggregation, offsetting and comparative information. The qualitative characteristics of financial reporting 
according  to  article  144  of  the  Financial  Regulation  are  relevance,  reliability,  understandability  and 
comparability. 

Preparation  of  the  financial  statements  in  accordance  with  the  above  mentioned  rules  and  principles 
requires management to make estimates that affect the reported amounts of certain items in the balance 
sheet and statement of financial performance, as well as the disclosures related to financial instruments 
and contingent assets and liabilities. 

1.3.  CONSOLIDATION 

Scope of consolidation 

The  consolidated  financial  statements  of  the  EU  comprise  all  significant  controlled  entities  (i.e.  the  EU 
institutions  (including  the  Commission)  and  the  EU  agencies),  associates  and  joint  ventures.  The 
complete  list  of  consolidated  entities  can  be  found  in  note  9  of  the  EU  financial  statements.  It  now 
comprises 52 controlled entities, 7 joint ventures and 1 associate. In comparison with 2014, the scope of 
consolidation  remained  unchanged  except  for  one  new  joint  venture  included  and  one  joint  venture 
removed – see note 2.3.  

Controlled entities 

The decision to include an entity in the scope of consolidation is based on the control concept. Controlled 
entities are all entities over which the EU has, directly or indirectly, the power to govern the financial and 
operating policies so as to be able to benefit from these entities' activities. This power must be presently 
exercisable. Controlled entities are fully consolidated. The consolidation begins at the first date on which 
control exists, and ends when such control no longer exists. 

38 

 
 
Annual accounts of the European Union 2015 

The most common indicators of control within the EU are: creation of the entity through founding treaties 
or secondary legislation, financing of the entity from the general budget, the existence of voting rights in 
the  governing  bodies,  audit  by  the  Court  and  discharge  by  the  European  Parliament.  An  individual 
assessment for each entity is made in order to decide whether one or all of the criteria listed above are 
sufficient to result in control. 

Under this approach, the EU's institutions (except the ECB) and agencies (excluding the agencies of the 
former 2nd pillar) are considered as under the exclusive control of the EU and are therefore included in 
the  consolidation  scope.  Furthermore  the  European  Coal  and  Steel  Community  (ECSC)  in  Liquidation  is 
also considered as a controlled entity.  

All material "inter-entity transactions and balances" between EU controlled entities are eliminated, while 
unrealised gains and losses on such transactions are not material and so have not been eliminated. 

Joint Ventures 

A joint venture is a contractual arrangement whereby the EU and one or more parties (the "venturers") 
undertake an economic activity which is subject to joint control. Joint control is the contractually agreed 
sharing  of  control,  directly  or  indirectly,  over  an  activity  embodying  service  potential.  Participations  in 
joint ventures are accounted for using the equity method (see 1.5.4 below). 

Associates 

Associates are entities over which the EU has, directly or indirectly, significant influence but not control. 
It is presumed that significant influence exists if the EU holds directly or indirectly 20 % or more of the 
voting rights. Participations in associates are accounted for using the equity method (see 1.5.4 below). 

Non-consolidated entities the funds of which are managed by the Commission 

The  funds  of  the  Joint  Sickness  Insurance  Scheme  for  staff  of  the  EU,  the  European  Development  Fund 
and  the  Participants  Guarantee  Fund  are  managed  by  the  Commission  on  their  behalf.  However  since 
these entities are not controlled by the EU they are not consolidated in its financial statements. 

1.4.  BASIS OF PREPARATION 

1.4.1.  Currency and basis for conversion 

Functional and reporting currency 

The  financial  statements  are  presented  in  millions  of  euros,  the  euro  being  the  EU's  functional  and 
reporting currency. 

Transactions and balances 

Foreign currency transactions are translated into euros using the exchange rates prevailing at the dates 
of the transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency 
transactions  and  from  the  re-translation  at  year-end  exchange  rates  of  monetary  assets  and  liabilities 
denominated in foreign currencies are recognised in the statement of financial performance. 

Different conversion methods apply to property, plant and equipment and intangible assets, which retain 
their value in euros at the rate that applied at the date when they were purchased. 

39 

 
 
 
 
 
 
Annual accounts of the European Union 2015 

Year-end balances of monetary assets and liabilities denominated in foreign currencies are converted into 
euros on the basis of the exchange rates applying on 31 December: 

Euro exchange rates 

Currency 
BGN 
CZK 
DKK 
GBP 
HRK 
HUF 

31.12.2015 
1.9558 
27.0230 
7.4626 
0.7340 
7.6380 
315.9800 

31.12.2014 
1.9558 
27.7350 
7.4453 
0.7789 
7.6580 
315.5400 

Currency 
PLN 
RON 
SEK 
CHF 
JPY 
USD 

31.12.2015 
4.2639 
4.5240 
9.1895 
1.0835 
131.0700 
1.0887 

31.12.2014 
4.2732 
4.4828 
9.3930 
1.2024 
145.2300 
1.2141 

Changes  in  the  fair  value  of  monetary  financial  instruments  denominated  in  a  foreign  currency  and 
classified  as  available  for  sale  that  relate  to  a  translation  difference  are  recognised  in  the  statement  of 
financial performance. Translation differences on non-monetary financial assets and liabilities held at fair 
value  through  profit  or  loss  are  recognised  in  the  statement  of  financial  performance.  Translation 
differences on non-monetary financial instruments classified as available for sale are included in the fair 
value reserve. 

1.4.2.  Use of estimates 

In  accordance  with  IPSAS  and  generally  accepted  accounting  principles,  the  financial  statements 
necessarily  include  amounts  based  on  estimates  and  assumptions  by  management  based  on  the  most 
reliable information available. Significant estimates include, but are not limited to: amounts for employee 
benefit  liabilities,  provisions,  financial  risk  on  inventories  and  accounts  receivable,  accrued  income  and 
charges,  contingent  assets  and  liabilities,  degree of impairment  of  intangible assets  and  property,  plant 
and equipment and amounts disclosed in the notes concerning financial instruments. Actual results could 
differ  from  those  estimates.  Changes  in  estimates  are  reflected  in  the  period  in  which  they  become 
known. 

1.5.  BALANCE SHEET 

1.5.1. 

Intangible assets 

Acquired  computer  software  licences  are  stated  at  historical  cost  less  accumulated  amortisation  and 
impairment  losses.  The  assets  are  amortised  on  a  straight-line  basis  over  their  estimated  useful  lives. 
The estimated useful lives of intangible assets depend on their specific economic lifetime or legal lifetime 
determined  by  an  agreement.  Internally  developed  intangible  assets  are  capitalised  when  the  relevant 
criteria of the EU accounting rules are met and relate solely to the development phase of the asset. The 
costs  capitalisable  include  all  directly  attributable  costs  necessary  to  create,  produce,  and  prepare  the 
asset to be capable of operating in the manner intended by management. Costs associated with research 
activities,  non-capitalisable  development  costs  and  maintenance  costs  are  recognised  as  expenses  as 
incurred. 

1.5.2. 

Property, plant and equipment 

All  property,  plant  and  equipment  are  stated  at  historical  cost  less  accumulated  depreciation  and 
impairment losses. Cost includes expenditure that is directly attributable to the acquisition, construction 
or transfer of the asset. 

Subsequent  costs  are  included  in  the  asset’s  carrying  amount  or  recognised  as  a  separate  asset,  as 
appropriate,  only  when  it  is  probable  that  future  economic  benefits  or  service  potential  associated  with 
the  item  will  flow  to  the  EU  and  its  cost  can  be  measured  reliably.  Repairs  and  maintenance  costs  are 
charged to the statement of financial performance during the financial period in which they are incurred. 

Land  and  works  of  art  are  not  depreciated  as  they  are deemed  to  have  an  indefinite  useful  life.  Assets 
under  construction  are  not  depreciated  as  these  assets  are  not  yet  available  for  use.  Depreciation  on 
other  assets  is  calculated  using  the  straight-line  method  to  allocate  their  cost  less  their  residual  values 
over their estimated useful lives, as follows: 

40 

 
 
Annual accounts of the European Union 2015 

Type of asset 
Buildings 
Plant and equipment 
Furniture and vehicles 
Computer hardware 
Other 

Straight line depreciation rate 

4 % to 10 % 
10 % to 25 % 
10 % to 25 % 
25 % to 33 % 
10 % to 33 % 

Gains  or  losses  on  disposals  are  determined  by  comparing  proceeds  less  selling  expenses  with  the 
carrying amount of the disposed asset and are included in the statement of financial performance. 

Leases 

Leases  of  tangible  assets,  where  the  EU  has  substantially  all  the  risks  and  rewards  of  ownership,  are 
classified as finance leases. Finance leases are capitalised at the lease’s commencement at the lower of 
the  fair  value  of  the  leased  asset  and  the  present  value  of  the  minimum  lease  payments.  The  interest 
element of the finance lease payment is charged to expenditure over the period of the lease at a constant 
periodic  rate  in  relation  to  the  balance  outstanding.  The  rental  obligations,  net  of  finance  charges,  are 
included  in  financial  liabilities  (non-current  and  current).  The  interest  element  of  the  finance  cost  is 
charged  to  the  statement  of  financial  performance  over  the  lease  period  so  as  to  produce  a  constant 
periodic  interest  rate  on  the  remaining  balance  of  the  liability  for  each  period.  The  assets  held  under 
finance leases are depreciated over the shorter of the asset's useful life and the lease term. 

Leases where the lessor retains a significant portion of the risks and rewards  inherent to ownership are 
classified as operating leases. Operating lease payments are recognised as an expense in the statement 
of financial performance on a straight-line basis over the lease term. 

1.5.3. 

Impairment of non-financial assets 

Assets  that  have  an  indefinite  useful  life  are  not  subject  to  amortisation/depreciation  and  are  tested 
annually  for  impairment.  Assets  that  are  subject  to  amortisation/depreciation  are  reviewed  for 
impairment whenever events or changes in circumstances indicate that the carrying amount may not be 
recoverable.  An  impairment  loss  is  recognised  for  the  amount  by  which  the  asset’s  carrying  amount 
exceeds  its  recoverable  (service)  amount.  The  recoverable  (service)  amount  is  the  higher  of  an  asset’s 
fair value less costs to sell and its value in use. 

Intangible  assets  and  property,  plant  and  equipment residual  values  and  useful  lives  are  reviewed,  and 
adjusted if appropriate, at least once per year. An asset’s carrying amount is written down immediately 
to  its  recoverable  (service)  amount  if  the  asset’s  carrying  amount  is  greater  than  its  estimated 
recoverable  (service)  amount.  If  the  reasons  for  impairments  recognised  in  previous  years  no  longer 
apply, the impairment losses are reversed accordingly. 

1.5.4. 

Investments accounted for using the equity method 

Participations in associates and joint ventures 

Participations in associates and joint ventures are accounted for using the equity method and are initially 
recognised at cost. The EU's interest in the results of its associates and joint ventures is recognised in the 
statement  of  financial  performance,  and  its  share  in  the  movements  in  reserves  is  recognised  in  the 
reserves.  The  initial  cost  together  with  all  movements  (further  contributions,  share  of  economic  results 
and  reserve  movements,  impairments,  and  dividends)  give  the  book  value  of  the  associate  or  joint 
venture in the financial statements at the balance sheet date. Distributions received from an associate or 
joint venture reduce the carrying amount of the asset. 

If the EU's share of deficits of a joint venture equals or exceeds its interest in the joint venture, the EU 
discontinues  recognising  its  share  of  further  losses  ("unrecognised  losses").  The  unrecognised  share  of 
losses  is  the  result  of  a  technical  accounting  exercise  needed  when  using  the  equity  method  of 
accounting. These unrecognised losses do not represent losses for the EU and are due to the fact that the 
expense  recognition  normally  takes  place  before  the  capital  increase  for  the  contribution  in  kind  of  the 
venturers other than the EU.  

41 

 
Annual accounts of the European Union 2015 

Unrealised  gains  and  losses  on  transactions  between  the  EU  and  its  associate  or  joint  ventures  are  not 
material and have therefore not been eliminated. The accounting policies of associates or joint ventures 
may differ from those adopted by the EU for like transactions and events in similar circumstances. 

If  there  are  indications of  impairment,  a  write-down  to the  lower  recoverable amount  is  necessary.  The 
recoverable  amount  is  determined  as  described  under  1.5.3.  If  the  reason  for  impairment  ceases  to 
apply  at  a  later  date,  the  impairment  loss  is  reversed  to  the  carrying  amount  that  would  have  been 
determined had no impairment loss been recognised. 

In  cases  where  the  EU  holds  20 %  or  more  of  an  investment  capital  fund,  it  does  not  seek  to  exert 
significant  influence.  Such  funds  are  therefore  treated  as  financial  instruments  and  categorised  as 
available for sale financial assets. 

1.5.5. 

Financial assets 

Classification 

The  EU  classifies  their  financial  assets  in  the  following  categories:  financial  assets  at  fair  value  through 
profit or loss; loans and receivables; held-to-maturity investments; and available for sale financial assets. 
The  classification  of  financial  instruments  is  determined  at  initial  recognition  and  re-evaluated  at  each 
balance sheet date. 

(i)  Financial assets at fair value through profit or loss 

A financial asset is classified in this category if acquired principally for the purpose of selling in the short 
term  or  if  so  designated  by  the  EU.  Derivatives  are  also  categorised  in  this  category.  Assets  in  this 
category  are  classified  as  current  assets  if  they  are  expected  to  be  realised  within  12  months  of  the 
balance sheet date. During this financial year, the EU did not hold any financial assets in this category. 

(ii)  Loans and receivables 

Loans  and  receivables  are  non-derivative  financial  assets  with  fixed  or  determinable  payments  that  are 
not quoted in an active market. They arise when the EU provides money, goods or services directly to a 
debtor  with  no  intention  of  trading  the  receivable,  or  in  case  the  EU  is  subrogated  to  the  rights  of  the 
original lender following a payment made by the EU under a guarantee contract. Payments due within 12 
months  of  the  balance  sheet  date  are  classified  as  current  assets.  Payments  due  after  12  months  from 
the balance sheet date are classified as non-current assets. Loans and receivables include term deposits 
with the original maturity above three months. 

(iii) Held-to-maturity investments 

Held-to-maturity  investments  are  non-derivative  financial  assets  with  fixed  or  determinable  payments 
and  fixed  maturities  that  the  EU  has  the  positive  intention  and  ability  to  hold  to  maturity.  During  this 
financial year, the EU did not hold any investments in this category.  

(iv) Available for sale financial assets 

Available  for  sale  financial  assets  are  non-derivatives  that  are  either  designated  in  this  category  or  not 
classified  in  any  of  the  other  categories.  They  are  classified  as  either  current  or  non-current  assets, 
depending  on  the  period  of  time  the  EU  expects  to  hold  them,  which  is  usually  the  maturity  date. 
Investments in entities that are neither consolidated nor accounted for using the equity method and other 
equity-type  investments  (e.g.  Risk  Capital  Operations)  are  also  classified  as  available  for  sale  financial 
assets. 

Initial recognition and measurement 

Purchases and sales of financial assets at fair value through profit or loss, held-to-maturity and available 
for  sale  (except  cash  and  cash  equivalents)  are  recognised  on  trade-date  –  the  date  on  which  the  EU 
commits  to  purchase  or  sell  the  asset.  Loans  are  recognised  when  cash  is  advanced  to  the  borrowers. 
Financial instruments are initially recognised at fair value. For all financial assets not carried at fair value 
through profit or loss transactions costs are added to the fair value at initial recognition. Financial assets 
carried at fair value through profit or loss are initially recognised at fair value and transaction costs are 
expensed in the statement of financial performance. 

42 

 
Annual accounts of the European Union 2015 

The fair value of a financial asset on initial recognition is normally the transaction price (i.e. the fair value 
of  the  consideration  received).  However,  when  a  long-term  loan  that  carries  no  interest  or  an  interest 
below market conditions is granted, its fair value can be estimated as the present value of all future cash 
receipts  discounted  using  the  prevailing  market  rate  of  interest  for  a  similar  instrument  with  a  similar 
credit rating. 

Loans  granted  are  measured  at  their  nominal  amount,  which  is  considered  to  be  the  fair  value  of  the 
loan. The reasoning for this is as follows: 

- 

- 

- 

The “market environment” for EU lending is very specific and different from the capital market used 
to  issue  commercial  or  government  bonds.  As  lenders  in  these  markets  have  the  opportunity  to 
choose  alternative  investments,  the  opportunity  possibility  is  factored  into  market  prices.  However, 
this  opportunity  for  alternative  investments  does  not  exist  for  the  EU  which  is  not  allowed  to  invest 
money on the capital markets; it only borrows funds for the purpose of lending at the same rate. This 
means  that  there  is  no  alternative  lending  or  investment  option  available  to  the  EU  for  the  sums 
borrowed. Thus, there is no opportunity cost and therefore no basis of comparison with market rates. 
In fact, the EU lending operation itself represents the market. Essentially, since the opportunity cost 
"option"  is  not  applicable,  the  market  price  does  not  fairly  reflect  the  substance  of  the  EU  lending 
transactions. Therefore, it is not appropriate to determine the fair value of EU lending with reference 
to commercial or government bonds. 

Furthermore as there is no active market or similar transactions to compare with, the interest rate to 
be used by the EU for fair valuing its lending operations under the EFSM, BOP and other such loans, 
should be the interest rate charged. 

In  addition,  for  these  loans,  there  are  compensating  effects  between  loans  and  borrowings  due  to 
their back-to-back character. Thus, the effective interest for the loan equals the effective interest rate 
for  the  related  borrowings.  The  transaction  costs  incurred  by  the  EU  and  then  recharged  to  the 
beneficiary of the loan are directly recognised in the statement of financial performance. 

Financial instruments are derecognised when the rights to receive cashflows from the investments have 
expired or the EU has transferred substantially all risks and rewards of ownership to another party. 

Subsequent measurement 

(i)  Financial assets at fair value through profit or loss are subsequently carried at fair value. Gains and 
losses arising from changes in the fair value of the ‘financial instruments at fair value through profit 
or  loss’  category  are  included  in  the  statement  of  financial  performance  in  the  period  in  which  they 
arise. The EU currently holds no investments in this category. 

(ii)  Loans  and  receivables  and  held-to-maturity  investments  are  carried  at  amortised  cost  using  the 
effective interest method. In the case of loans granted on borrowed funds, the same effective interest 
rate is applied to both the loans and borrowings since these loans have the characteristics of 'back-
to-back operations' and the differences between the loan and the borrowing conditions and amounts 
are  not  material.  The  transaction  costs  incurred  by the  EU  and  then  recharged  to the  beneficiary  of 
the loan are directly recognised in the statement of financial performance. 

(iii) Held to maturity – the EU currently holds no held to maturity investments. 

(iv) Available for sale financial assets are subsequently carried at fair value. Gains and losses arising from 
changes in the fair value of available for sale financial assets are recognised in the fair value reserve, 
except  for  translation  differences  on  monetary  assets  which  are  recognised  in  the  statement  of 
financial performance. When assets classified as available for sale financial assets are derecognised or 
impaired,  the  cumulative  fair  value  adjustments  previously  recognised  in  the  fair  value  reserve  are 
recognised  in  the  statement  of  financial  performance.  Interest  on  available  for  sale  financial  assets 
calculated using the effective interest method is recognised in the statement of financial performance. 
Dividends  on  available  for  sale  equity  instruments  are  recognised  when  the  EU's  right  to  receive 
payment is established. 

The fair values of quoted investments in active markets are based on current bid prices. If the market for 
a  financial  asset  is  not  active  (and  for  unlisted  securities),  the  EU  establishes  a  fair  value  by  using 
valuation  techniques.  These  include  the  use  of  recent  arm’s  length  transactions,  reference  to  other 
instruments  that  are  substantially  the  same,  discounted  cashflow  analysis,  option  pricing  models  and 
other valuation techniques commonly used by market participants.  

43 

 
 
 
Annual accounts of the European Union 2015 

In  cases  where  the  fair  value  of  investments  in  equity  instruments  that  do  not  have  a  quoted  market 
price  in  an  active  market  cannot  be  reliably  measured,  these  investments  are  valued  at  cost  less 
impairment losses. 

Impairment of financial assets 

The EU assesses at each balance sheet date whether there is objective evidence that a financial asset is 
impaired.  A  financial  asset  is  impaired  and  impairment  losses  are  incurred  if,  and  only  if,  there  is 
objective  evidence  of  impairment  as  a  result  of  one  or  more  events  that  occurred  after  the  initial 
recognition of the asset and that loss event (or events) has an impact on the estimated future cashflows 
of the financial asset that can be reliably estimated. 

(a) 

Assets carried at amortised cost 

If  there  is  objective  evidence  that  an  impairment  loss  on  loans  and  receivables  or  held-to-maturity 
investments  carried  at  amortised  cost  has  been  incurred,  the  amount  of  the  loss  is  measured  as  the 
difference  between  the  asset’s  carrying  amount  and  the  present  value  of  estimated  future  cashflows 
(excluding  future  credit  losses  that  have  not  been  incurred)  discounted  at  the  financial  asset’s  original 
effective  interest  rate.  The  carrying  amount  of  the  asset  is  reduced  and  the  amount  of  the  loss  is 
recognised  in  the  statement  of  financial  performance.  If  a  loan  or  held-to-maturity  investment  has  a 
variable  interest  rate,  the  discount  rate  for  measuring  any  impairment  loss  is  the  current  effective 
interest rate determined under the contract. The calculation of the present value of the estimated future 
cashflows  of  a  collateralised  financial  asset  reflects  the  cashflows  that  may  result  from  foreclosure  less 
costs for obtaining and selling the collateral, whether or not foreclosure is probable. If, in a subsequent 
period,  the  amount  of  the  impairment  loss  decreases  and  the  decrease  can  be  related objectively  to  an 
event  occurring  after  the  impairment  was  recognised,  the  previously  recognised  impairment  loss  is 
reversed through the statement of financial performance. 

(b) 

Assets carried at fair value 

In  the  case  of  equity  investments  classified  as  available  for  sale  financial  assets,  a  significant  or 
permanent (prolonged) decline in the fair value of the security below its cost is considered in determining 
whether the securities are impaired. If any such evidence exists for available for sale financial assets, the 
cumulative loss – measured as the difference between the acquisition cost and the current fair value, less 
any  impairment  loss  on  that  financial  asset  previously  recognised  in  the  statement  of  financial 
performance  –  is  removed  from  reserves  and  recognised  in  the  statement  of  financial  performance. 
Impairment  losses  recognised  in  the  statement  of  financial  performance  on  equity  instruments  are  not 
reversed  through  the  statement  of  financial performance.  If,  in  a  subsequent  period, the  fair  value of a 
debt  instrument  classified  as  available  for  sale  financial  asset  increases  and  the  increase  can  be 
objectively related to an event occurring after the impairment loss was recognised, the impairment loss is 
reversed through the statement of financial performance. 

Investments in venture capital funds 

Investments in Venture Capital Funds are classified as available for sale financial assets and, accordingly, 
are carried at fair value with gains and losses arising from changes in the fair value (including translation 
differences)  recognised  in  the  fair  value  reserve.  Since  they  do  not  have  a  quoted  market  price  in  an 
active  market,  investments  in  Venture  Capital  Funds  are  valued  on  a  line-by-line  basis  at  the  lower  of 
cost  or  attributable  net  asset  value.  Unrealised  gains  resulting  from  the  fair  value  measurement  are 
recognised  through  reserves  and  unrealised  losses  are  assessed  for  impairment  so  as  to  determine 
whether  they  are  recognised  as  impairment  losses  in  the  statement  of  financial  performance  or  as 
changes in the fair value reserve. 

1.5.6. 

Inventories 

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the first-in, 
first-out (FIFO) method. The cost of finished goods and work in progress comprises raw materials, direct 
labour,  other  directly  attributable  costs  and  related  production  overheads  (based  on  normal  operating 
capacity).  Net  realisable  value  is the estimated  selling  price  in  the  ordinary  course  of business,  less the 
costs of completion and selling expenses. When inventories are held for distribution at no charge or for a 
nominal  charge,  they  are  measured  at  the  lower  of  cost  and  current  replacement  cost.  Current 
replacement cost is the cost the EU would incur to acquire the asset on the reporting date. 

44 

 
 
1.5.7. 

Pre-financing amounts 

Annual accounts of the European Union 2015 

Pre-financing is a payment intended to provide the beneficiary with a cash advance, i.e. a float. It may be 
split into a number of payments over a period defined in the particular contract, decision, agreement or 
basic legal act. The float or advance is either used for the purpose for which it was provided during the 
period defined in the agreement or it is repaid. If the beneficiary does not incur eligible expenditure, they 
have the obligation to return the pre-financing advance to the EU. The amount of the pre-financing may 
be reduced (wholly or partially) by the acceptance of eligible costs (which are recognised as expenses).  

Pre-financing is, on subsequent balance sheet dates, measured at the amount initially recognised on the 
balance sheet less eligible expenses (including estimated amounts where necessary) incurred during the 
period.  

Interest  on  pre-financing  is  recognised  as  it  is  earned  in  accordance  with  the  provisions  of  the  relevant 
agreement. An estimate of the accrued interest revenue, based on the most reliable information, is made 
at the year-end and included on the balance sheet. 

Other  advances  to  Member  States  which  originate  from  reimbursement  by  the  EU  of  amounts  paid  as 
advances  by  the  Member  States  to  their  beneficiaries  (including  "financial  instruments  under  shared 
management") are recognised as assets and presented under the pre-financing heading. Other advances 
to  Member  States  are  subsequently  measured  at  the  amount  initially  recognised  on  the  balance  sheet 
less  a  best  estimate  of  the  eligible  expenses  incurred  by  final  beneficiaries,  calculated  on  the  basis  of 
reasonable and supportable assumptions. 

The  EU  contributions  to  the  trust  funds  of  the  European  Development  Fund  or  other  unconsolidated 
entities are also classified as pre-financing since their purpose is to give a float to the trust fund to allow 
it to finance specific actions defined under the trust fund's objectives. The EU contributions to trust funds 
are  measured  at  the  initial  amount  of  the  EU  contribution  less  eligible  expenses,  including  estimated 
amounts where necessary, incurred by the trust fund during the reporting period and allocated to the EU 
contribution in accordance with the underlying agreement. 

1.5.8. 

Exchange receivables and non-exchange recoverables 

As the EU accounting rules require a separate presentation of exchange and non-exchange transactions, 
for  the  purpose  of  drawing  up  the  accounts,  receivables  are  defined  as  stemming  from  exchange 
transactions  and  recoverables  are  defined  as  stemming  from  non-exchange  transactions  (when  the  EU 
receives  value  from  another  entity  without  directly  giving  approximately  equal  value  in  exchange  (for 
example recoverables from Member States related to own resources). 

Receivables  from  exchange  transactions  meet  the  definition  of  financial  instruments  and  are  thus 
classified  as  loans  and  receivables  and  measured  accordingly  (see  1.5.5  above).  The  financial 
instruments notes disclosures concerning receivables from exchange transactions include accrued income 
and deferred charges from exchange transactions as they are not material. 

Recoverables  from  non-exchange  transactions  are  carried  at  original  amount  (adjusted  for  interest  and 
penalties)  less  write-down  for  impairment.  A  write-down  for  impairment  of  recoverables  from  
non-exchange transactions is established when there is objective evidence that the EU will not be able to 
collect all amounts due according to the original terms of recoverables from non-exchange transactions. 
The amount of the write-down is the difference between the asset’s carrying amount and the recoverable 
amount. The amount of the write-down is recognised in the statement of financial performance. A general 
write-down, based on past experience, is also made for outstanding recovery orders not already subject 
to  a  specific  write-down.  See  note  1.5.14  below  concerning  the  treatment  of  accrued  income  at  
year-end.  Amounts  displayed  and  disclosed  as  recoverables  from  non-exchanges  transactions  are  not 
financial  instruments  as  they  do  not  arise  from  a  contract  that  would  give  rise  to  a  financial  liability  or 
equity  instrument.  However,  in  the  notes  to  the  financial  statements  recoverables  from  non-exchange 
transactions are disclosed together with receivables from exchange transactions where appropriate. 

1.5.9.  Cash and cash equivalents 

Cash  and  cash  equivalents  are  financial  instruments  and  classified  as  available  for  sale  financial  assets. 
They include cash at hand, deposits held at call or at short notice with banks and other short-term highly 
liquid investments with original maturities of three months or less. 

45 

 
Annual accounts of the European Union 2015 

1.5.10.  Pension and other employee benefits 

Pension obligations 

The EU operates defined benefit pension plans. Whilst staff contribute from their salaries one third of the 
expected cost of these benefits, the liability is not funded. The liability recognised in the balance sheet in 
respect  of  defined  benefit  pension  plans  is  the  present  value  of  the  defined  benefit  obligation  at  the 
balance sheet date less the fair value of any plan assets. The defined benefit obligation is calculated by 
actuaries  using  the  projected  unit  credit  method.  The  present  value  of  the  defined  benefit  obligation  is 
determined by discounting the estimated future cash outflows using interest rates of government bonds 
that are denominated in the currency in which the benefits will be paid, and that have terms to maturity 
approximating to the terms of the related pension liability. 

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are 
recognised  immediately  in  the  statement  of  financial  performance.  Past-service  costs  are  recognised 
immediately  in  statement  of  financial  performance,  unless  the  changes  to  the  pension  plan  are 
conditional on the employees remaining in service for a specified period of time (the vesting period). In 
this case, the past-service costs are amortised on a straight-line basis over the vesting period. 

Post-employment sickness benefits 

The  EU  provides  health  benefits  to  its  employees  through  the  reimbursement  of  medical  expenses. 
A separate fund has been created for its day-to-day administration. Both current employees, pensioners, 
widowers and their relatives benefit from the system. The benefits granted to the "inactives" (pensioners, 
orphans, etc.) are classified as "Post-Employment Employee Benefits". Given the nature of these benefits, 
an actuarial calculation is required. The liability in the balance sheet is determined on a similar basis as 
that for the pension obligations (see above). 

1.5.11.  Provisions 

Provisions are recognised when the EU has a present legal or constructive obligation towards third parties 
as a result of past events, it is more likely than not that an outflow of resources will be required to settle 
the  obligation,  and  the  amount  can  be  reliably  estimated.  Provisions  are  not  recognised  for  future 
operating  losses.  The  amount  of  the  provision  is  the  best  estimate  of  the  expenses  expected  to  be 
required  to  settle  the  present  obligation  at  the  reporting  date.  Where  the  provision  involves  a  large 
number  of  items,  the  obligation  is  estimated  by  weighting  all  possible  outcomes  by  their  associated 
probabilities (“expected value” method). 

1.5.12.  Financial liabilities 

Financial  liabilities  are  classified  as  financial  liabilities  at  fair  value  through  profit  or  loss  or  as  financial 
liabilities  carried  at  amortised  cost.  Borrowings  are composed  of borrowings  from  credit institutions  and 
debts evidenced by certificates. They are recognised initially at fair value, being their issue proceeds (fair 
value of consideration received) net of transaction costs incurred, then subsequently carried at amortised 
cost using the effective interest method; any difference between proceeds, net of transaction costs, and 
the  redemption  value  is  recognised  in  the  statement  of  financial  performance  over  the  period  of  the 
borrowings using the effective interest method.  

Financial liabilities are classified as non-current liabilities, except for maturities less than 12 months after 
the  balance  sheet  date.  In  the  case  of  loans  granted  on  borrowed  funds,  the  effective  interest  method 
may  not  be  applied  to loans  and  borrowings,  based  on  materiality  considerations.  The  transaction  costs 
incurred  by  the  EU  and  then  recharged  to  the  beneficiary  of  the  loan  are  directly  recognised  in  the 
statement of financial performance. 

Financial liabilities categorised at fair value through profit or loss include derivatives when their fair value 
is negative. They follow the same accounting treatment as financial assets at fair value through profit or 
loss,  see  note  1.5.5.  During  this  financial  year,  the  EU  did  not  hold  any  financial  liabilities  in  this 
category. 

46 

 
 
1.5.13.  Payables 

Annual accounts of the European Union 2015 

A  significant  amount  of  the  payables  of  the  EU  are  not  related  to  exchange  transactions  such  as  the 
purchase of goods or services – instead they are unpaid cost claims from beneficiaries of grants or other 
EU funding (non-exchange transactions). They are recorded as payables for the requested amount when 
the cost claim is received. Upon verification and acceptance of the eligible costs, the payables are valued 
at the accepted and eligible amount. 

Payables  arising  from  the  purchase  of  goods  and  services  are  recognised  at  invoice  reception  for  the 
original  amount  and  corresponding  expenses  are  entered  in  the  accounts  when  the  supplies  or  services 
are delivered and accepted by the EU. 

The EU trust funds created and managed by the Commission are considered as part of the Commission's 
operational  activities  and  are  accounted  for  in  the  Commission  accounts.  Therefore,  contributions  from 
other  donors  to  the  EU  trust  funds  fulfil  the  criteria  of  revenues  from  non-exchange  transactions  under 
conditions  and  they  are  presented  as  liabilities  until  the  costs  are  incurred  by  the  trust  fund.  The  trust 
fund is required to finance specific projects and return remaining funds at the time of winding-up. At the 
balance sheet date the outstanding contribution liabilities are measured at contributions received less the 
expenses incurred by the trust fund, including estimated amounts when necessary, and allocated to the 
contributions of other donors in accordance with the underlying agreements. 

1.5.14.  Accrued and deferred income and charges 

Transactions and events are recognised in the financial statements in the period to which they relate. At 
year-end,  if  an  invoice  is  not  yet  issued  but  the  service  has  been  rendered,  the  supplies  have  been 
delivered by the EU or a contractual agreement exists (e.g. by reference to a treaty), an accrued income 
will  be  recognised  in  the  financial  statements.  In  addition,  at  year-end,  if  an  invoice  is  issued  but  the 
services have not yet been rendered or the goods supplied have not yet been delivered, the revenue will 
be deferred and recognised in the subsequent accounting period. 

Expenses are also accounted for in the period to which they relate. At the end of the accounting period, 
accrued expenses are recognised based on an estimated amount of the transfer obligation of the period. 
The  calculation  of  accrued  expenses  is  done  in  accordance  with  detailed  operational  and  practical 
guidelines  issued  by  the  Commission  which  aim  at  ensuring  that  the  financial  statements  provide  a 
faithful representation of the economic and other phenomena they purport to represent. 

1.6.  STATEMENT OF FINANCIAL PERFORMANCE 

1.6.1.  Revenue 

REVENUE FROM NON-EXCHANGE TRANSACTIONS 

The vast majority of the EU's revenue relates to non-exchange transactions: 

GNI based resources and VAT resources 

Revenue is recognised for the period for which the Commission sends out a call for funds to the Member 
States claiming their contribution. They are measured at their “called amount”. As VAT and GNI resources 
are  based  on  estimates  of  the  data  for  the  budgetary  year  concerned,  they  may  be  revised  as  changes 
occur until the final data are issued by the Member States. The effect of a change in estimate is included 
when determining the net surplus or deficit for the period in which the change occurred. 

Traditional own resources 

Recoverables  from  non-exchange  transactions  and  related  revenues  are  recognised  when  the  relevant 
monthly  "A"  statements  (including  duties  collected  and  amounts  due  that  are  guaranteed  and  not 
contested) are received from the Member States. At the reporting date, revenue collected by the Member 
States for the period but not yet paid to the Commission is estimated and recognised as accrued income. 
The  quarterly  "B"  statements  (including  duties  neither  collected  nor  guaranteed,  as  well  as  guaranteed 
amounts  that  have  been  contested  by  the  debtor)  received  from  the  Member  States  are  recognised  as 

47 

 
Annual accounts of the European Union 2015 

revenue less the collection costs to which they are  entitled. In addition, a value reduction is recognised 
for the amount of the estimated recovery gap. 

Fines 

Revenue  from  fines  is  recognised  when  the  EU's  decision  imposing  a  fine  has  been  taken  and  it  is 
officially  notified  to  the  addressee.  If  there  are  doubts  about  the  undertaking's  solvency,  a  value 
reduction  on  the  entitlement  is  recognised.  After  the  decision  to  impose  a  fine,  the  debtors  have  two 
months from the date of notification: 

- 

- 

either to accept the decision, in which case they must pay the fine within the time limit laid down and 
the amount is definitively collected by the EU; 

or not to accept the decision, in which case they lodge an appeal under EU law.  

However, even if appealed, the fine must be paid within the time limit of three months laid down as the 
appeal  does  not  have  suspensory  effect  (Article  278  of  the  EU  Treaty)  or,  under  certain  circumstances 
and  subject  to  the  agreement  of  the  Commission's  Accounting  Officer,  the  debtor  may  present  a  bank 
guarantee for the amount instead. 

If the undertaking appeals against the decision, and has already provisionally paid the fine, the amount is 
disclosed  as  a  contingent  liability.  However,  since  an  appeal  against  an  EU  decision  by  the  addressee 
does  not  have  suspensory  effect,  the  cash  received  is  used  to  clear  the  recoverable.  If  a  guarantee  is 
received  instead  of  payment,  the  fine  remains  as  a recoverable.  If  it  appears probable that the  General 
Court  may  not  rule  in  favour  of  the  EU,  a  provision  is  recognised  to  cover  this  risk.  If  a  guarantee  had 
been  given  instead,  then  the  recoverable  outstanding  is  written-down  as  required.  The  accumulated 
interest  received  by  the  Commission  on  the  bank  accounts  where  received  payments  are  deposited  is 
recognised as revenue, and any contingent liability is increased accordingly. 

Since 2010, all provisionally cashed fines are managed by the Commission in a specifically created fund 
(BUFI) and invested in financial instruments categorised as available for sale financial assets. 

REVENUE FROM EXCHANGE TRANSACTIONS 

Revenue  from  the  sale  of  goods  and  services  is  recognised  when  the  significant  risk  and  rewards  of 
ownership of the goods are transferred to the purchaser. Revenue associated with a transaction involving 
the provision of services is recognised by reference to the stage of completion of the transaction at the 
reporting date. 

Interest income and expense 

Interest income and expense are recognised in the statement of financial performance using the effective 
interest  method.  This  is  a  method  of  calculating  the  amortised  cost  of  a  financial  asset  or  a  financial 
liability  and  of  allocating  the  interest  income  or  interest  expense  over  the  relevant  period.  When 
calculating the effective interest rate, the EU estimates cashflows considering all contractual terms of the 
financial  instrument  (for  example  prepayment  options)  but  does  not  consider  future  credit  losses.  The 
calculation  includes  all  fees  and  points  paid  or  received  between  parties  to  the  contract  that  are  an 
integral part of the effective interest rate, transaction costs and all other premiums or discounts. 

Once  a  financial  asset  or  a  group  of  similar  financial  assets  has  been  written  down  as  a  result  of  an 
impairment loss, interest income is recognised using the rate of interest to discount the future cashflows 
for the purpose of measuring the impairment loss. 

Dividend income 

Dividend income is recognised when the right to receive payment is established. 

1.6.2. 

Expenses 

Expenses from non-exchange transactions account for the majority of the EU's expenses. They relate to 
transfers  to  beneficiaries  and  can  be  of  three  types:  entitlements,  transfers  under  agreement  and 
discretionary grants, contributions and donations. 

48 

 
 
Annual accounts of the European Union 2015 

Transfers  are  recognised  as  expenses  in  the  period  during  which  the  events  giving  rise  to  the  transfer 
occurred,  as  long  as  the  nature  of  the  transfer  is  allowed  by  regulation  (Financial  Regulation,  Staff 
Regulations, or other regulation) or an agreement has been signed authorising the transfer; any eligibility 
criteria have been met by the beneficiary; and a reasonable estimate of the amount can be made. 

When a request for payment or cost claim is received and meets the recognition criteria, it is recognised 
as  an  expense  for  the  eligible  amount.  At  year-end,  incurred  eligible  expenses  due  to  the  beneficiaries 
but not yet reported are estimated and recorded as accrued expenses. 

Expenses  from  exchange  transactions  arising  from  the  purchase  of  goods  and  services  are  recognised 
when  the  supplies  are  delivered  and  accepted  by  the  EU.  They  are  valued  at  original  invoice  amount. 
Furthermore,  at  the  balance  sheet  date  expenses  related  to  the  service  delivered  during  the  period  for 
which an invoice has not yet been received or accepted are estimated and recognised in the statement of 
financial performance. 

1.7.  CONTINGENT ASSETS AND LIABILITIES 

1.7.1.  Contingent assets 

A  contingent  asset  is  a  possible  asset  that  arises  from  past  events  and  of  which  the  existence  will  be 
confirmed  only  by  the  occurrence  or  non-occurrence  of  one  or  more  uncertain  future  events  not  wholly 
within  the  control  of  the  EU.  A  contingent  asset  is  disclosed  when  an  inflow  of  economic  benefits  or 
service potential is probable. 

1.7.2.  Contingent liabilities 

A contingent liability is a possible obligation that arises from past events and of which the existence will 
be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly 
within  the  control  of  the  EU;  or  a  present  obligation  that  arises  from  past  events  but  is  not  recognised 
because: it is not probable that an outflow of resources embodying economic benefits or service potential 
will be required to settle the obligation or in the rare circumstances where the amount of the obligation 
cannot be measured with sufficient reliability. 

49 

 
 
Annual accounts of the European Union 2015 

2.  NOTES TO THE BALANCE SHEET 

ASSETS 

2.1.  INTANGIBLE ASSETS 

Gross carrying amount at 31.12.2014 
Additions 
Disposals 
Transfer between asset categories 
Other changes 
Gross carrying amount at 31.12.2015 
Accumulated amortisation at 31.12.2014 
Amortisation charge for the year 
Disposals 
Transfer between asset categories 
Other changes 
Accumulated amortisation at 31.12.2015 

Net carrying amount at 31.12.2015 
Net carrying amount at 31.12.2014 

The above amounts relate primarily to computer software. 

EUR millions  

 577 
 134 
 (14) 
0 
0 
 698 
 (295) 
 (74) 
 9 
0 
- 
 (361) 

 337 
 282 

2.2.  PROPERTY, PLANT AND EQUIPMENT 

The  increase  in  property,  plant  and  equipment  is  mainly  related  to  the  further  development  of  assets 
relating  to  the  Galileo  and  Copernicus  space  programmes,  these  being  built  with  the  assistance  of  the 
European Space Agency (ESA).  

For  Galileo,  the  EU's  Global  Navigation  Satellite  System  (GNSS),  the  assets  under  construction  at 
31 December 2015  total  EUR 2 110 million  (2014:  EUR 1 478 million).  An  amount  of  EUR 17 million 
(2014:  EUR 17 million)  of  non-capitalisable  development  costs  has  been  recognised  as  expenses  during 
the period. When completed, the system will comprise 30 satellites and a network of ground stations. At 
the balance sheet date 12 Galileo satellites have been already launched.  

Regarding  Copernicus,  the  European  Earth  observation  programme,  the  related  assets  have  been 
recognised on the EU balance sheet since 2014, following their transfer from ESA. At the balance sheet 
date, EUR 1 188 million relating to the Copernicus satellites currently being constructed are recognised as 
assets  under  construction  (2014:  EUR 1 228 million). Moreover,  EUR 498 million  relating  to  the  Sentinel 
1A  and  2A  satellites  in  orbit  are  recognised  as  assets  under  the  heading  plant  and  equipment,  net  of 
accumulated  depreciation  (2014:  EUR 283 million)  after  Sentinel  2A  has  been  launched  and  became 
operational during the reporting period. Sentinel 1A and 2A satellites are depreciated over their expected 
useful life of 7 years. 

50 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

Computer 
Hardware 

Other 

 Assets 
under 
construction 

3 176 
 998 
 (38) 
 (305) 
 1 
3 832 

Finance 
leases 

2 693 
 61 
 (1) 
0 
 31 
2 784 
 (950) 
 (103) 
- 
 1 
0 
 (2) 
(1 054) 

EUR millions 

Total 

12 754 
1 262 
 (145) 
– 
 39 
13 911 
(4 817) 
 (489) 
 1 
 101 
– 
 (6) 
(5 211) 

 261 
 34 
 (8) 
 (11) 
0 
 277 
 (173) 
 (27) 
0 
 7 
 10 
0 
 (182) 

 94 

1 730 

3 832 

8 700 

 89 

1 743 

3 176 

7 937 

 623 
 54 
 (53) 
0 
 2 
 627 
 (501) 
 (69) 
 1 
 52 
0 
 (1) 
 (517) 

 110 

 122 

Property, plant and equipment 

Land and 
Buildings 

Plant and 
Equipment 

Gross carrying amount at 31.12.2014 
Additions 
Disposals 
Transfer between asset categories 
Other changes 
Gross carrying amount at 31.12.2015 
Accumulated depreciation at 31.12.2014 
Depreciation charge for the year 
Depreciation written back 
Disposals 
Transfer between asset categories 
Other changes 
Accumulated depreciation at 
31.12.2015 

4 768 
 41 
 (8) 
 54 
 1 
4 856 
(2 549) 
 (158) 
- 
 6 
- 
0 
(2 701) 

NET CARRYING AMOUNT AT 
31.12.2015 
NET CARRYING AMOUNT AT 31.12.2014 

2 155 

2 219 

 990 
 58 
 (25) 
 261 
 3 
1 288 
 (477) 
 (116) 
0 
 24 
 (10) 
 (3) 
 (581) 

 708 

 513 

Furniture 
and 
Vehicles 
 242 
 16 
 (12) 
- 
 2 
 248 
 (168) 
 (18) 
0 
 11 
- 
 (1) 
 (176) 

 72 

 74 

51 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

2.3.  INVESTMENTS ACCOUNTED FOR USING THE EQUITY 

METHOD 

Participations in joint ventures 
Participations in associates 
Total 

Note 
2.3.1 
2.3.2 

31.12.2015 
 5 
 491 
 497 

EUR millions 

31.12.2014 
– 
 409 
 409 

Participations in joint ventures and associates are accounted for using the equity method.  

2.3.1. 

Participations in joint ventures 

Participations at 31.12.2014 
Contributions 
Share of net result 
Recognition of previously 
unrecognised share of loss 
Other equity movements 
Participations at 
31.12.2015 
Unrecognised share of loss 

GJU 

SESAR 

BBI

– 
– 
– 
– 

– 
– 

– 

 0 
 93 
 (93) 
– 

 0 
 0 

 (252) 

–
1
4
–

0
5

–

Clean
Sky 
0
224
(163)
(61)

0
0

IMI

ECSEL 

EUR millions 
Total

FCH 

0
147
(147)
–

0
0

 0 
145 
(145) 
– 

 0 
 0 

 0 
 67 
 (67) 
– 

 0 
 0 

0
677
 (611)
(61)

(0)
5

(38)

(161)

(55) 

 (156) 

 (662)

* For a detailed explanation of unrecognised losses see note 1.5.4. 

The  following  carrying  amounts  are  attributable  to  the  Commission  based  on  its  percentage  of 
participation: 

Non-current assets 
Current assets 
Non-current liabilities 
Current liabilities 
Revenue 
Expenses 

31.12.2015 
 188 
 301 
– 
 (856) 
 13 
 (811) 

EUR millions 
31.12.2014 
 250 
 178 
– 
 (813) 
 2 
 (666) 

ITER International Fusion Energy Organisation (ITER) 

Following  a  review  of  the  accounting  for  joint  ventures,  it  has  been  determined  that  the  ITER 
Organisation  does  not  meet  the  criteria  for  recognition  as  a  joint  venture.  Since  2015,  it  is  no  longer 
recorded  as  a joint  venture,  and  EU  contributions  to  the  ITER  Organisation  are  treated  as  expenses.  As 
the carrying value of the ITER Organisation at 31 December 2014 was zero, and the impact of the change 
is not material, no adjustment of prior year results has been made. 

GALILEO Joint Undertaking (GJU) 

The  GJU  was  put  into  liquidation  at  the  end  of  2006  and  the  process  is  still  on-going.  The  entity  was 
inactive and still undergoing liquidation in 2015.  

SESAR Joint Undertaking 

At 31 December 2015, the Commission held 41.28 % (2014: 43.53 %) of the ownership participation in 
SESAR. 

52 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
Joint Technology Initiatives 

Annual accounts of the European Union 2015 

Public  private  partnerships  (PPPs)  in  the  form  of  Joint  Technology  Initiatives  (JTIs),  which  were 
implemented through Joint Undertakings (JUs) within the meaning of Article 187 of the Treaty, have been 
created  in  order  to  implement  the  objectives  of  the  Lisbon  Growth  and  Jobs  Agenda.  The  Bio  Based 
Industries  (BBI),  Clean  Sky,  Innovative  Medicines  Initiative  (IMI),  ECSEL  (amalgamation  of  the  former 
ARTEMIS  &  ENIAC  JUs)  and  Fuel  Cells  Hydrogen  (FCH)  JUs  are  PPPs  created  in  the  form  of  JTIs.  The 
ownership participation at year-end is as follows: 57.81 % in BBI (2014: N/A), 63.59 % (2014: 61.39 %) 
in Clean Sky, 67.07 % (2014: 80.47 %) in IMI, 96.29 % (2014: 95.47 %) in ECSEL and 64.86 % (2014: 
70.85 %) in FCH. 

2.3.2. 

Participations in associates 

European Investment Fund 

The  participation  of  the  Commission  in  the  European  Investment  Fund  (EIF)  is  treated  as  an  associate 
using  the  equity  method  of  accounting.  The  EIF  is  the  EU's  financial  institution  specialising  in  providing 
risk capital and guarantees to SMEs. 

Participation at 31.12.2014 
Contributions 
Share of net result 
Other equity movements 
Participation at 31.12.2015 

EUR millions 
EIF 
 409 
 44 
 31 
 7 
 491 

The  following  carrying  amounts  are  attributable  to  the  Commission  based  on  its  percentage  of 
participation: 

Assets 
Liabilities 
Revenue 
Surplus/(deficit) 

31.12.2015 
 578 
 (87) 
 51 
 26 

EUR millions 
31.12.2014 
 497 
 (87) 
 38 
 21 

The  Commission  has  paid  in  20 %  of  its  participation,  the  balance  being  uncalled,  corresponding  to  an 
amount of EUR 909 million. 

Total share capital 
Paid-in 
Uncalled 

Total EIF capital 

4 286 
 (857) 
3 429 

EUR millions 
Commission 
subscription 
1 136 
 (227) 
 909 

53 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

2.4.  FINANCIAL ASSETS 

Non-current financial assets 
Available for sale financial assets 
Loans 
Total 
Current financial assets 
Available for sale financial assets 
Loans 
Total 
Total 

Note 

31.12.2015 

31.12.2014 

EUR millions 

2.4.1 
2.4.2 

2.4.1 
2.4.2 

7 222 
49 743 
56 965 

2 399 
7 508 
9 907 
66 871 

6 550 
49 888 
56 438 

2 856 
8 955 
11 811 
68 249 

2.4.1.  Available for sale financial assets 

BUFI investments 
Guarantee Fund for external actions 
ECSC in Liquidation 
European Bank for Reconstruction and Development 
  Sub-total 
Budgetary Instruments: 
Risk Sharing Finance Facility (RSFF) 
Horizon 2020 
ETF Start up 
Project Bond Initiative 
Loan Guarantee Instrument for TEN-T projects (LGTT) 
Risk Capital Operations 
European Fund for South East Europe 
Other budgetary instruments 
  Sub-total 
Total 
Non-current 
Current 

BUFI investments 

31.12.2015 
2 647 
2 002 
1 699 
 188 
6 536 

EUR millions 
31.12.2014 
3 068 
1 825 
1 699 
 188 
6 780 

 773 
 765 
 485 
 217 
 208 
 152 
 118 
 366 
3 084 
9 620 
7 222 
2 399 

 842 
 514 
 399 
 125 
 186 
 145 
 117 
 298 
2 626 
9 406 
6 550 
2 856 

Provisionally  cashed  fines  related  to  competition  cases  are  allocated  to  a  specially  created  fund  (BUFI 
Fund) and invested by the Commission in the debt instruments categorised as available for sale financial 
assets. 

Guarantee Fund for external actions 

The  Guarantee  Fund  for  external  actions  covers  loans  guaranteed  by  the  EU  in  particular  EIB  lending 
operations  outside the  EU  and  loans  under  macro-financial  assistance  (MFA)  and  Euratom  loans  outside 
the  EU.  It  is  a  long-term  instrument  (non-current  part:  EUR 1 614 million)  managed  by  the  EIB  and 
intended  to  cover  any  defaulting  loans  guaranteed  by  the  EU.  The  Fund  is  endowed  by  payments  from 
the  EU  budget,  the  proceeds  from  interest  on  investments  made  from  the  Fund's  assets,  and  sums 
recovered  from  defaulting  debtors  for  whom  the  Fund  has  had  to  activate  its  guarantee.  Any  yearly 
surplus  arising  is  paid  back  as  revenue  for  the  EU  budget.  The  EU  is  required  to  include  a  guarantee 
reserve  to  cover  loans  to  third  countries.  This  reserve  is  intended  to  cover  the  requirements  of  the 
Guarantee Fund and, where necessary, activated guarantees exceeding the amount available in the Fund, 
so that these amounts may be charged to the budget. This reserve corresponds to the target amount of 
9 % of the loans outstanding at year-end. 

54 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

ECSC in Liquidation 

Regarding  the  ECSC  in  liquidation  amounts,  all  available  for  sale  financial  assets  are  debt  securities 
denominated in EUR and quoted in an active market. 

European Bank for Reconstruction and Development 

As the European Bank for Reconstruction and Development (EBRD) is not quoted on any stock exchange 
and  in  view  of  the  contractual  restrictions  included  in  the  EBRD’s  articles  of  incorporation  relating, 
amongst  others,  to the  sale  of  participating  interests,  capped  at  acquisition  cost  and  only  authorised  to 
existing  shareholders,  the  Commission's  shareholding  is  valued  at  cost  less  any  write-down  for 
impairment. 

Total Share Capital 
Paid-in 
Uncalled 

Budgetary Instruments 

Total EBRD 
capital 
29 674 
(6 202) 
23 472 

EUR millions 
Commission 
subscription 
 900 
 (188) 
 712 

The  EU  holds  available  for  sale  financial  assets  in  the  form  of  debt  securities  (e.g.  bonds)  and  equity 
instruments.  The  debt  securities  are  mainly  used to  temporarily  invest  the  amounts  allocated  to  the  EU 
guarantee and risk-sharing instruments until they are used to satisfy the guarantee calls. 

Risk-Sharing Finance Facility 

The  Risk-Sharing  Finance  Facility  (RSFF)  is  managed  by  the  EIB  and  the  Commission's  investment 
portfolio is used to provision financial risk for loans and guarantees given by the EIB to eligible research 
projects. In total, a Commission budget of up to EUR 1 billion was allocated to the RSFF under the 2007-
2013  MFF.  Under  the  2014-2020  MFF,  there  are  no  new  budget  contributions  foreseen  to  the  RSFF.  In 
2015, EUR 65 million of the EU contribution to the RSFF was transferred to its successor debt instrument 
under Horizon 2020. At 31 December 2015, the Commission contribution to the RSFF, including also EFTA 
and third countries, amounts to EUR 791 million. It should be noted that the Commission's overall risk is 
limited to the amount it contributes to the Facility. 

Horizon 2020 

Under  the  EU  Regulation  establishing  Horizon  2020  –  the  Framework  Programme  for  Research  and 
Innovation (2014-2020), new financial instruments have been established in order to enhance access to 
finance to entities engaged in research and innovation (R&I). These instruments are: the InnovFin Loan 
and  Guarantee  Service  for  R&I  -  under  which  the  Commission  shares  the  financial  risk  related  to  a 
portfolio of new financing operations entered into by the EIB, the InnovFin SME Guarantee including the 
SME  Initiative  Uncapped  Guarantee  Instrument  (SIUGI)  –  guarantee  facilities  managed  by  the  EIF 
providing  guarantees  and  counter-guarantees  to  the  financial  intermediaries  for  the  new  portfolios  of 
loans (under SIUGI the Commission shares the financial risk related to the guarantee given with Member 
States, EIF and EIB) and the InnovFin Equity Facility for R&I providing for investments in venture capital 
funds  and  managed  by  the  EIF.  At  31 December  2015,  the  total  EU  contribution  to  the  Horizon  2020 
financial instruments amounted to EUR 1 060 million. 

ETF Start up 

These  are  equity  instruments  that  were  financed  by  the  Growth  &  Employment  programme,  the  MAP 
programme, the CIP programme and the Technology Transfer Pilot Project, under the trusteeship of the 
EIF,  supporting the  creation  and  financing  of  Start-Up  SMEs  by  investing  in  suitable  specialised  venture 
capital funds. 

55 

 
 
 
 
  
 
 
Fair value hierarchy of available for sale financial assets: 

Annual accounts of the European Union 2015 

Level 1: Quoted prices in active markets 
Level 2: Observable inputs other than quoted prices 
Level 3: Valuation techniques with inputs not based on 
observable market data 
Total 

31.12.2015 
8 123 
 188 
1 310 

EUR millions 
31.12.2014 
8 183 
 76 
1 147 

9 620 

9 406 

During the period EUR 10 million was transferred from level 2 to level 1. 

Reconciliation  of  financial  assets  measured  using  valuation  techniques  with  inputs  not  based  on 
observable market data (level 3): 

Opening balance at 31.12.2014 
Purchases and sales 
Gains or losses for the period in financial income or finance costs 
Gains or losses in net assets 
Transfers into level 3  
Transfers out of level 3  
Other 
Closing balance at 31.12.2015 

2.4.2. 

Loans 

Loans from borrowed funds 
Loans granted from the budget 
Total 
Non-current 
Current 

Loans granted from borrowed funds 

EUR millions 

1 147 
 98 
 (27) 
 91 
– 
– 
– 
1 310 

31.12.2015 
56 874 
 377 
57 251 
49 743 
7 508 

EUR millions 
31.12.2014 
58 509 
 334 
58 843 
49 888 
8 955 

MFA 

Euratom 

BOP 

EFSM 

ECSC in 

Total at 31.12.2014 
New loans 
Repayments 
Exchange differences 
Changes in carrying amount 
Impairment 
Total at 31.12.2015 
Non-current 
Current 

1 842 
1 245 
 (67) 
- 
 4 
- 
3 024 
2 937 
 87 

 349 
- 
 (48) 
- 
- 
- 
 301 
 251 
 50 

8 590 
- 
(2 700) 
- 
 (79) 
- 
5 811 
4 200 
1 611 

47 507 
12 160 
(12 160) 
- 
 2 
- 
47 509 
42 050 
5 459 

The change in carrying amount corresponds to the change in accrued interests. 

Liqui-     
dation 
 221 
- 
- 
 14 
 (6) 
- 
 229 
 218 
 11 

EUR millions
Total 

58 509 
13 405 
(14 975) 
 14 
 (79) 
– 
56 874 
49 656 
7 218 

MFA is a policy-based financial instrument of untied and undesignated balance of payment and/or budget 
support  to  partner  countries  currently  following  an  IMF  programme.  It  takes  the  form  of  medium/long 
term  loans  or  grants  or  an  appropriate  combination  of  both  and  generally  complements  financing 
provided  in  the  context  of  an  IMF-supported  adjustment  and  reform  program.  These  loans  are 
guaranteed  by  the  Guarantee  Fund  for  external  actions.  At  31.12.2015,  EUR 1 323 million  relating  to  a 
loan  facility  agreement  under  MFA  assistance  were  granted  to  Ukraine  (EUR 1 200 million),  to  Tunisia 
(EUR 100 million), to Georgia (EUR 13 million) and to Kyrgyzstan (EUR 10 million) but not yet disbursed. 

The Euratom legal entity (represented by the Commission) lends money to both Member States and non-
Member  States  to  finance  projects  relating  to  energy  installations.  At  31 December 2015,  loans  of 
EUR 300 million  were  granted  to  Ukraine  but  not  yet  disbursed.  Guarantees  from  third-parties  of 
EUR 301 million (2014: EUR 349 million) have been received covering Euratom loans. 

56 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

The  BOP  facility,  a  policy-based  financial  instrument,  provides  medium-term  financial  assistance  to 
Member States of the EU. It enables the granting of loans to Member States which are experiencing, or 
are  seriously  threatened  with,  difficulties  in  their  balance  of  payments  or  capital  movements.  Only 
Member States which have not adopted the Euro may benefit from this facility. BOP assistance to Latvia 
was granted before the introduction of the Euro on 1 January 2014. The maximum outstanding amount of 
loans  granted  under  the  instrument  is  limited  to  EUR 50 billion.  Borrowings  related  to  these  BOP  loans 
are  guaranteed  by  the  EU  budget  –  thus  at  31 December 2015,  the  budget  is  exposed  to  a  maximum 
possible risk of EUR 5.8 billion regarding these loans. 

EFSM enables the granting of financial assistance to a Member State in difficulties or seriously threatened 
with severe difficulties caused by exceptional circumstances beyond its control. The assistance may take 
the  form  of  a  loan  or  credit  line.  The  ECOFIN  Council  conclusions  of  9 May 2010  restrict  the  facility  to 
EUR 60 billion  but  the  legal  limit  restricts  the  outstanding  amount  of  loans  or  credit  lines  to  the  margin 
available  under  the  own  resources  ceiling.  Borrowings  related  to  loans  disbursed  under  the  EFSM  are 
guaranteed  by  the  EU  budget  –  thus  at  31 December 2015,  the  budget  is  exposed  to  a  maximum 
possible risk of EUR 47.5 billion regarding these loans. As both EFSM programmes have expired, there is 
no  outstanding  available  undisbursed  amounts.  It  is  not  foreseen  that  the  EFSM  will  engage  in  new 
financing programmes or enter into new loan facility agreements.  

ECSC  in  Liquidation  loans  are  granted  on  borrowed  funds  in  accordance  with  articles  54  and  56  of  the 
ECSC Treaty. 

Loans effective interest rates (expressed as a range of interest rates) 

Loans 
Macro Financial Assistance (MFA) 
Euratom 
Balance of Payment (BOP) 
European Financial Stability Mechanism (EFSM) 
ECSC in Liquidation 

31.12.2015 
0 % - 4.54 % 
0.08 % - 5.76 % 
2.375 % - 3.625 % 
0.625 % - 3.75 % 
5.2354 % - 5.8103 % 

31.12.2014 
0.181 % - 4.54 % 
0.26 % - 5.76 % 
2.375 % - 3.625 % 
1.875 % - 3.750 % 
5.2354 % - 5.8103 % 

Loans granted from the budget 

Loans with special conditions 
ECSC in liquidation housing loans* 
Term deposits between 3 and 12 months  
Total 
Non-current 
Current 
* Granted from ECSC i.L. own funds. 

31.12.2015 
 113 
 6 
 257 
 377 
 88 
 290 

EUR millions 
31.12.2014 
 130 
 9 
 195 
 334 
 116 
 217 

Loans with special conditions are granted at preferential rates as part of co-operation with non-member 
countries.  

Impairment on loans granted from the budget 

31.12.2014 

Additions 

Reversals 

Write-off  

Loans with special 
conditions 
ECSC in liquidation 
housing loans 
Total 

 6 

– 

 6 

75 

0 

75 

0 

0 

0 

0 

0 

0 

Other 

149 

0 

149 

EUR millions
31.12.2015 

 231 

– 

 231 

The loans with special conditions heading includes also subrogated loans, i.e. defaulting loans which were 
granted by the EIB and for which all rights have been subrogated to the EU following the payment from 
the Guarantee Fund for external actions, and which are fully impaired for an amount of EUR 217 million 
(2014: EUR 149 million). 

57 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

2.5.  PRE-FINANCING 

Non-current pre-financing 
Pre-financing 
Other advances to Member States 
Contribution to Trust Funds 
Total 
Current pre-financing 
Pre-financing 
Other advances to Member States 
Total 
Total 

Note 

31.12.2015 

31.12.2014 

EUR millions 

2.5.1 
2.5.2 

2.5.1 
2.5.2 

28 543 
1 332 
 4 
29 879 

11 498 
3 779 
15 277 
45 156 

15 980 
2 378 
– 
18 358 

29 222 
5 015 
34 237 
52 595 

Pre-financing  represents  a  large  portion  of  the  EU's  total  assets,  and  thus  receives  proper  and  regular 
attention. It should be noted that the level of pre-financing amounts in the various programmes must be 
sufficient to ensure the necessary funding for the beneficiary to start the project, while also safeguarding 
the  financial  interests  of  the  EU  and  taking  into  consideration  legal,  operational  and  cost-effectiveness 
constraints.  All  these  elements  have  been  given  due  consideration  by  the  Commission  in  an  effort  to 
improve the follow-up of pre-financing. 

2.5.1. 

Pre-financing 

Shared 
management 

EAFRD & other 
rural development 
instruments 
ERDF & CF 

ESF 

Other 

Total 

Direct 
Management 
Implemented by:  

Commission 

EU executive 
agencies 
Trust funds 

Total 

Indirect 
Management 
Implemented by: 

Other EU agencies 
& bodies 
Third countries 

International 
organisations 
Other entities 

Total 

Total 

Non-current 

Current 

Gross 
amount 

Cleared via 
cut-off 

Net amount 
at 
31.12.2015 

Gross 
amount 

Cleared via 
cut-off 

EUR millions
Net amount 
at 
31.12.2014 

4 726 

(1 629) 

3 097 

5 644 

(2 115) 

3 529 

24 268 

7 251 

4 359 

(7 416) 

(1 325) 

(2 365) 

16 852 

24 934 

5 926 

1 994 

6 884 

4 626 

(2 182) 

 (953) 

(2 535) 

40 604 

(12 735) 

27 869 

42 088 

(7 785) 

12 512 

11 065 

(9 536) 

(7 767) 

2 976 

3 298 

13 173 

9 079 

(10 215) 

(6 618) 

 14 

 (5) 

 9 

- 

- 

23 591 

(17 308) 

6 283 

22 252 

(16 833) 

 627 

 (95) 

 532 

 548 

 (98) 

2 151 

6 640 

5 330 

14 748 

78 943 

28 543 

50 401 

(1 229) 

(4 014) 

(3 521) 

(8 859) 

(38 902) 

– 

(38 902) 

 922 

2 626 

1 809 

5 889 

40 041 

28 543 

11 498 

1 981 

6 236 

4 370 

13 135 

77 474 

15 980 

61 495 

(1 169) 

(3 476) 

(2 910) 

(7 653) 

(32 273) 

– 

(32 273) 

22 752 

5 931 

2 091 

34 303 

2 958 

2 461 

- 

5 419 

 450 

 812 

2 760 

1 460 

5 482 

45 202 

15 980 

29 222 

58 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
Annual accounts of the European Union 2015 

The  closure  of  programming  period  2007-2013  and  the  gradual  set-up  of  programs  under  the  period 
2014-2020  are  the  major  factors  influencing  the  size  of  this  asset:  pre-financing  related  to  the  old 
programs is  decreasing due  to  the  acceptance  of  costs,  while  further  pre-financings  have  been  paid  out 
concerning the new programming period.  

For  shared  management  this  transition  between  programming  periods  also  explains  the  movement 
between  current  and  non-current  balances.  New  pre-financing  paid  concerning  the  programming  period 
2014-2020  is  typically  booked  as  non-current;  the  amounts  paid  during  2015  total  EUR 10 billion,  of 
which  EUR 7 billion  are  related  to  cohesion  policy.  The  programming  period  2007-2013  is  in  its  closing 
phase and thus more amounts become due within twelve months. 

Guarantees received in respect of pre-financing 

These  are  guarantees  that  the  Commission  requests  from  beneficiaries  that  are  not  Member  States,  in 
certain  cases  when  paying  out  advance  payments  (pre-financing).  There  are  two  values  to  disclose  for 
this  type  of  guarantee,  the  “nominal”  and  the  “on-going”  values.  For  the  nominal  value,  the  generating 
event  is  linked  to  the  existence  of  the  guarantee.  For  the  on-going  value,  the  guarantee’s  generating 
event is the pre-financing payment and/or subsequent clearings. At 31 December 2015 the nominal value 
of guarantees received in respect of pre-financing amounted to EUR 844 million while the on-going value 
of those guarantees was EUR 626 million (2014: EUR 957 million and EUR 605 million respectively). 

Certain pre-financing amounts paid out under the 7th Research Framework Programme for research and 
technological  development  (FP7)  and  under  Horizon  2020  are  effectively  covered  by  a  Participants 
Guarantee Fund (PGF). The PGF is a mutual benefit instrument set up to cover the risks relating to non-
payment  of  amounts  by  the  beneficiaries  during  the  implementation  of  the  indirect  actions  of  FP7  and 
Horizon 2020. All participants of indirect actions receiving a grant from the EU contribute 5 % of the total 
contribution to the PGF's capital. 

At  31 December 2015  pre-financing  amounts  covered  by  the  PGF  totalled  EUR 1.7 billion  (2014: 
EUR 1.8 billion). The EU (represented by the Commission) acts as an executive agent of the participants 
of the PGF, but the fund is owned by the participants.  

At year-end, the PGF had total assets of EUR 1 838 million (2014: EUR 1 640 million). The assets of the 
PGF also include financial assets that are managed by the Directorate-General for Economic and Financial 
Affairs.  As  the  PGF  is  a  separate  entity  the  assets  of  the  fund  are  not  consolidated  in  these  EU  annual 
accounts. 

2.5.2.  Other advances to Member States 

Advances to Member States for financial instruments under 
shared management 
Aid Schemes 
Total 
Non-current 
Current 

31.12.2015 
3 287 

EUR millions 
31.12.2014 
3 823 

1 824 
5 111 
1 332 
3 779 

3 570 
7 393 
2 378 
5 015 

Under  the  framework of  the  structural  funds  programmes  and  also  under  the  EAFRD  2007-2013,  it  was 
possible  to  make  advance  payments  from  the  EU  budget  to  Member  States  so  as  to  allow  them  to 
contribute to financial instruments (be it in the form of loans, equity investments or guarantees). These 
financial  instruments  are  set  up  and  managed  under  the  responsibility  of  the  Member  States,  not  the 
Commission. Nevertheless, monies that are unused by these instruments at year-end are the property of 
the EU (as with all pre-financing) and are thus treated as an asset on the EU’s balance sheet. However, 
the basic legal acts do not oblige the Member States to provide periodic reports to the Commission on the 
use  made  of  these  advances,  and  in  some  cases  not  even  to  identify  them  in  the  statements  of 
expenditure submitted to the Commission.  

For rural development, the Commission requested information on  the unused amounts directly from the 
paying  agencies  in  the  Member  States.  On  the  basis  of  this  information,  it  is  estimated  that 
EUR 56 million remained unused at 31 December 2015. 

For  cohesion  policy,  every  year  the  Commission  collects  information  from  the  Member  States  on  these 
financial instruments and consolidates it in an annual implementation report. The next report, on unused 
amounts at end 2015, is due on 1 October 2016, thus the information in it will not be available in time for 

59 

 
 
 
 
Annual accounts of the European Union 2015 

inclusion  in these  accounts.  Consequently,  the  value  of this  asset is  estimated  on the  basis of  the  most 
recent reliable information available, i.e. the annual implementation report as at 31 December 2014 and 
disbursements made during 2015. The estimate also relies on the assumption that funds will be used in 
full and used evenly over the remaining period of operation (ending 31 March 2017). It is estimated that 
at  year  end  2015  an  amount  of  EUR 3 231 million  was  still  to  be  used  for  investments  in  final 
beneficiaries.  

As the period of operation is coming to an end, a targeted data collection exercise was launched, aimed 
at  gathering  information  on  the  unspent  funds  as  at  31 December 2015  from  the  Member  States.  The 
data provided showed clearly that the estimate calculated by the Commission is reasonably accurate. 

The total contribution requested by Member States to the Commission concerning these instruments was 
EUR 10 938 million,  of  which  EUR 353 million  remained  unpaid  at  year  end.  In  2015,  limited  amounts 
relating to the 2014-2020 programming period have been paid.  

Similar  to  the  above,  advances  paid  by  the  Member  States  for  various  aid  schemes  (state  aid,  market 
measures of EAGF) that were not used at year end are recorded as assets on the EU's balance sheet. The 
Commission  has  estimated  the  value  of  these  advances  based  on  information  provided  by  the  Member 
States;  the  resulting  amounts  are  included  under  the  Aid  Schemes  sub-headings  above.  Of  the  total 
amount,  it  is  estimated  that  EUR 972 million  representing  advances  paid  in  the  context  of  rural 
development remained unused at the end of 2015. 

2.6.  EXCHANGE RECEIVABLES AND NON-EXCHANGE 

RECOVERABLES 

Non-current 
Recoverables from non-exchange transactions 
Receivables from exchange transactions 
Total 
Current 
Recoverables from non-exchange transactions 
Receivables from exchange transactions 
Total 
Total 

Note 

31.12.2015 

31.12.2014 

EUR millions 

2.6.1 
2.6.2 

2.6.1 
2.6.2 

 857 
 13 
 870 

8 882 
 572 
9 454 
10 324 

1 158 
 40 
1 198 

13 828 
 551 
14 380 
15 578 

2.6.1.  Recoverables from non-exchange transactions 

Non-current 
Member States 
Accrued income and deferred charges 

Total 

Current 
Member States 
Fines 
Accrued income and deferred charges 
Other recoverables 

Total 

Total 

Note 

31.12.2015 

31.12.2014 

EUR millions 

2.6.1.1
2.6.1.3

2.6.1.1
2.6.1.2
2.6.1.3

 857 
– 

 857 

6 845 
1 601 
 369 
 67 

8 882 

9 739 

 305 
 853 

1 158 

10 679 
2 270 
 832 
 48 

13 828 

14 987 

60 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.6.1.1.  Recoverables from Member States 

Annual accounts of the European Union 2015 

Established in the A account 
Established in the separate account 
Own resources to be received 
Impairment 
Other 
Own resources recoverables 
European Agricultural Guarantee Fund (EAGF) 
European Agricultural Fund for Rural Development (EAFRD) 
Temporary Rural Development Instrument (TRDI) 
Special Accession Programme for Agriculture and Rural 
Development (SAPARD) 
Impairment 
EAGF and rural development recoverables 
Pre-financing recovery expected 
VAT paid and recoverable 
Other recoverables from Member States 
Total 
Non-current 
Current 

31.12.2015 
3 041 
1 283 
– 
 (760) 
 10 
3 573 
3 846 
 750 
 26 
 175 

(1 092) 
3 705 
 313 
 36 
 75 
7 701 
 857 
6 845 

EUR millions 
31.12.2014 
2 789 
1 617 
5 413 
(1 144) 
 12 
8 686 
2 250 
 52 
 27 
 166 

 (840) 
1 655 
 437 
 44 
 161 
10 984 
 305 
10 679 

The non-current amounts due from Member States relate to non-executed conformity clearance decisions 
for  the  European  Agricultural  Guarantee  Fund  (EAGF)  and  the  European  Agricultural  Fund  for  Rural 
Development (EAFRD) to be implemented in annual instalments and/or deferrals. 

Own resources recoverables 

The Member States’ contribution to the EU budget contributions based on VAT and GNI is subject to an 
annual adjustment, which is performed every year on the first working day of December. The adjustment 
in  2014  included  major  revisions  for  GNI  dating  back  to  2002,  thus  resulting  in  an  unprecedented 
EUR 9.5 billion across all EU Member States, of which EUR 5.4 billion were still to be received at year end. 
The outstanding amounts were received during 2015, in accordance with the planned deferred payments.  

The adjustment of 2015 did not result in any amounts to be recovered from the Member States. 

EAGF and Rural Development recoverables 

This  item  primarily  covers  the  amounts  owed  by  Member  States  at  31  December,  as  declared  and 
certified  by  the  Member  States  at  15  October.  An  estimation  is  made  for  the  recoverables  arising  after 
this  declaration  and  up  to  31  December.  The  Commission  also  estimates  a  write-down  for  the  amounts 
owed by beneficiaries that are unlikely to be recovered. The fact that such an adjustment is made does 
not mean that the Commission is waiving future recovery of these amounts. A deduction of 20 % is also 
included  in  the  adjustment,  and  corresponds  to  what  Member  States  are  allowed  to  retain  to  cover 
administrative costs. 

2.6.1.2.  Fines 

This  refers  to  fines  issued  by  the  Commission  which  were  not  (provisionally)  cashed  at  year  end 
(EUR 2 165 million)  less  amounts  written-down  (EUR 181 million)  and  less  amounts  corresponding  to 
Court  decisions  in  favour  of  the  undertaking  (EUR 384 million).  Guarantees  totalling  EUR 1 428 million 
were  received  for  the  fines  outstanding  at  year-end  (2014:  EUR 1 916 million).  It  should  be  noted  that 
EUR 116 million of these receivables were due for payment after 31 December 2015. 

The decrease in the balance of the open fines at year end is due to the fact that fines became definitive 
and were transferred to the budget during 2015 and that fines were reduced by the Court of Justice.  

61 

 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

2.6.1.3.  Accrued income and deferred charges 

Cohesion, Agriculture and Rural Development Funds: 
Financial corrections 
Other accrued income 
Deferred charges relating to non-exchange transactions 
Total 
Non-current 
Current 

2.6.2.  Receivables from exchange transactions 

Non-current 
Other receivables 
Total 
Current 
Customers 
Impairment on receivables from customers 
Deferred charges relating to exchange transactions 
Other 
Total 
Total 

31.12.2015 
 10 

EUR millions 
31.12.2014 
1 502 

 162 
 196 
 369 
– 
 369 

 83 
 101 
1 686 
 853 
 832 

31.12.2015 

EUR millions 
31.12.2014 

 13 
 13 

 225 
 (107) 
 228 
 227 
 572 
 585 

 40 
 40 

 211 
 (103) 
 219 
 224 
 551 
 591 

The  impairment  on  receivables  from  customers  disclosed  above  includes  EUR 39 million  of  impairment 
determined on an individual basis. 

2.7.  INVENTORIES 

Scientific materials 
Other 
Total 

31.12.2015 
 55 
 83 
 138 

EUR millions 
31.12.2014 
 66 
 62 
 128 

62 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
Annual accounts of the European Union 2015 

2.8.  CASH AND CASH EQUIVALENTS 

Accounts with Treasuries and Central Banks 
Current accounts 
Imprest accounts 
Transfers (cash in transit) 
Other term deposits 

Bank accounts for budget implementation and 
other term deposits 
Cash belonging to financial instruments 

Cash relating to fines 

Cash relating to other institutions, agencies and 
bodies 
Cash relating to Trust Funds 
Total 

Note 

2.8.1 

2.8.2 

2.8.3 

31.12.2015 
17 119 
 110 
 4 
– 
 28 

EUR millions 

31.12.2014 
11 840 
 303 
 4 
– 
 28 

17 262 

12 174 

1 298 

1 908 

1 012 

 192 
21 671 

1 275 

2 738 

1 358 

– 
17 545 

2.8.1.  Bank accounts for budget implementation and other term deposits 

This  heading  covers  the  funds  which  the  Commission  keeps  in  its  bank  accounts  in  each  Member  State 
and  EFTA  country  (treasury  or  central  bank),  as  well  as  in  commercial  bank  current  accounts,  imprest 
accounts and petty cash. 

The high balance at the end of 2015 is mainly due to high own resources contributions related to the part 
of the 2014 VAT and GNI  balances that was only paid by Member States during 2015, to the 2015 VAT 
and GNI balances paid in 2015, and to an important amount of fines for breach of competition rules that 
became  definitive.  The  amending  budget  based  on  the  own  resource  regulation  reducing  the  Member 
States'  contributions  accordingly  was  adopted  late  in  the  year  2015,  hence  the  corresponding  amounts 
were returned to the Member States only in January 2016, for a total amount of EUR 9.5 billion. Also, two 
Member States have paid their 2016 GNI balance in advance. 

2.8.2.  Cash belonging to financial instruments 

Amounts shown under this heading primarily concern cash equivalents managed by fiduciaries on behalf 
of  the  Commission  for  the  purpose  of  implementing  particular  financial  instrument  programmes  funded 
by  the  EU  budget.  The  cash  belonging  to  financial  instruments  can  only  be  used  in  the  programme 
concerned. 

2.8.3.  Cash relating to fines 

This is cash received in connection with fines issued by the Commission for which the case is still open. 
These amounts are kept in specific deposit accounts that are not used for any other activities. Where an 
appeal  has  been  lodged  or  where  it  is  unknown  if  an  appeal  will  be  made  by  the  other  party,  the 
underlying amount is shown as contingent liability in note 5.2. 

The  decrease  in  this  balance  is  due  to  the  fact  that  since  2010,  all  new  provisionally  cashed  fines  are 
managed  by  the  Commission  in  a  specifically  created  fund  (BUFI)  and  invested  in  financial  instruments 
categorised as available for sale (see note 2.4.1). 

63 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

LIABILITIES 

2.9.  PENSION AND OTHER EMPLOYEE BENEFITS 

Net employee benefit scheme liability 

Pension 
Scheme 
of 
European 
Officials 
54 967 

54 967 

Other 
retirement 
benefit 
schemes 

Joint 
Sickness 
Insurance 
Scheme 

31.12.2015  
Total 

EUR millions 
31.12.2014     

Total 

1 613 
 (149) 
1 465 

7 662 
 (280) 
7 382 

64 242 
 (428) 
63 814 

59 053 
 (437) 
58 616 

Defined Benefit Obligation 
Plan assets 
Net liability 

The  increase  in  the  total  employee  benefits  liability  is  primarily  due  to  movements  in  the  two  main 
schemes: 

The Pension Scheme of European Officials: 

• 

• 

There  was  a  significant  impact  from  the  further  reduction  in  the  Real  Discount  Rate  from 
0.7 % to 0.6 %. A decrease in the discount rate has increased the current  value of benefits 
and increased the current service cost. 

There was also a movement in the expected rate of salary increases from 1.1 % to 1.2 %. 

•  Other changes to actuarial assumptions and parameters (for example, actuarial gains/losses 

based on experience and changes in population) affected the calculation of the liability. 

The Joint Sickness Insurance Scheme, where there were updated financial assumptions. 

The defined benefit obligation represents a theoretical estimate of the amount an employer would have to 
pay  into the  scheme to  satisfy  the  obligations  it  had  towards  pension  scheme members  at  that point  in 
time.  However,  the  schemes  are  ongoing,  and  as  such,  all  payments  required  to  be  made  from  the 
scheme on an annual basis are included in the EU budget each year. 

2.9.1. 

Pension Scheme of European Officials 

In  accordance  with  Article  83  of  the  Staff  Regulations,  the  payment  of  the  benefits  provided  for  in  the 
staff pension scheme constitutes a charge to the EU's budget. The scheme is not funded, but the Member 
States guarantee the payment of these benefits collectively. In addition, officials contribute one third to 
the long-term financing of this scheme via a compulsory contribution from their salaries. 

The liabilities of the pension scheme were assessed on the basis of the number of staff and retired staff 
at 31 December 2015 and on the rules of the Staff Regulations applicable at this date. This valuation was 
carried out in accordance with the methodology of IPSAS 25 (and therefore also EU accounting rule 12). 
The Commission will further strengthen its processes used for calculating the  employee benefits liability 
during 2016 – possible results, where appropriate, will be reflected in the 2016 accounts. 

2.9.2.  Other retirement benefit schemes 

This refers to the liability relating to the pension obligations towards Members and former Members of the 
Commission, the Court of Justice (and General Court) and the Court of Auditors, the Secretaries General 
of the Council, the Ombudsman, the European Data Protection Supervisor, and the European Union Civil 
Service Tribunal. Also included under this heading is a liability relating to the pensions of Members of the 
European Parliament. 

2.9.3. 

Joint Sickness Insurance Scheme 

In addition to the above retirement benefit schemes, a valuation is made for the estimated liability that 
the EU has regarding the Joint Sickness Insurance Scheme in relation to healthcare costs which must be 
paid during employees' post-activity periods (net of their contributions).  

64 

 
 
 
 
 
 
 
 
 
Movement in present value of employee benefits defined benefit obligation 

Annual accounts of the European Union 2015 

The  present  value  of  the  defined  benefit  obligation  is  the  present  value,  without  deducting  any  plan 
assets, of expected future payments required to settle the obligation resulting from employee service in 
the current and prior periods.  

An analysis of the current year movement in the defined benefit obligation is shown below: 

Pension 
Scheme of 
European 
Officials  
50 897 

Other 
retirement 
benefit 
schemes 
1 488 

3 323 
1 170 
1 429 

(1 244) 
 (608) 

 77 
 27 
 91 

 (52) 
 (17) 

EUR millions 

Total 

Joint Sickness 
Insurance 
Scheme 

6 668 

59 053 

 243 
 140 
 674 
 21 
 (85) 

3 643 
1 337 
2 194 
 21 
(1 380) 
 (625) 

54 967 

1 613 

7 662 

64 242 

Present value as at 
31.12.2014 
Current Service Cost 
Interest cost 
Net Actuarial (gains) and losses 
Contributions from members 
Benefits paid 
Liability increase/(decrease) due 
to taxes on pensions 
Present value as at 
31.12.2015 

Current service costs are the increase in the present value of the defined benefit obligation arising from 
current members' service in the current period.  
Interest  costs  are  the  increase  during  the  period  in  the  present  value  of  the  defined  benefit  obligation 
because the benefits are one period closer to settlement.  
Net Actuarial gains and losses comprise: 

- 

- 

Experience  adjustments  (the  effects  of  differences  between  the  previous  actuarial  assumptions 
and what has actually occurred); and 
Effects  of  changes  in  actuarial  assumptions  such  as  financial  assumptions,  mortality  rates  and 
projected  salary  increases.  These  assumptions  are  inherently  uncertain  and  therefore  can  show 
significant movements from year to year. 

Benefits  paid  are  benefits  paid  during  the  year  according  to  the  rules  of  the  scheme  (e.g.  pensions  for 
retirees). These benefits paid lead to a decrease in the defined benefit obligation as they are no longer to 
be paid in the future. 

Actuarial assumptions - employee benefits 

The  principle  actuarial  assumptions  used  in  the  valuation  of  the two  main  employee benefit  schemes of 
the EU are shown below: 

2015 
Nominal discount rate  
Expected inflation rate  
Real discount rate 
Expected rate of salary increases 
Medical cost trend rates 
Retirement age 
2014 
Nominal discount rate  
Expected inflation rate  
Real discount rate 
Expected rate of salary increases 
Medical cost trend rates 
Retirement age 

Pension Scheme 
of European 
Officials 

Joint Sickness 
Insurance 
Scheme 

2.0 % 
1.4 % 
0.6 % 
1.2 % 
N/A 
63/64/65 

2.0 % 
1.3 % 
0.7 % 
1.1 % 
N/A 
63/64/65 

2.1 % 
1.4 % 
0.7 % 
1.2 % 
3.0 % 
63/64/66 

2.1 % 
1.3 % 
0.8 % 
1.1 % 
3.0 % 
63 

Mortality rates are based on the International Civil Servants Life Table (ICSLT 2013). 

65 

 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
Annual accounts of the European Union 2015 

The nominal discount rate is determined as the value of the Euro zero-coupon yield (with a maturity of 18 
years  as  of  December 2015  for  the  Pension  Scheme  of  European  Officials  (PSEO),  and  20  years  for  the 
Joint  Sickness  Insurance  Scheme).  The  inflation  rate  used  is  the  expected  inflation  rate  over  the 
equivalent period. It must be determined empirically, based on prospective values as expressed by index-
linked  bonds  on  the  European  financial  markets.  The  real  discount  rate    is  calculated  from  the  nominal 
discount rate and the expected long-term inflation rate. 

Movement in present value of plan assets 

Other retirement 
benefit schemes 
 165 

Joint Sickness 
Insurance Scheme 
 272 

 (16) 
 149 

8 
 280 

Present value as at 
31.12.2014 
Net movement in plan assets 
Present value as at 
31.12.2015 

5 year trend 

Employee benefits liability 

2011 
34 835 

2012 
42 503 

2013 
46 818 

2014 
58 616 

EUR millions 

Total 

 437 

(8) 
428 

EUR millions 
2015 
63 814 

The significant increase in the employee benefits liability over the five years can largely be explained by a 
reduction in the real discount rate used to discount the future cash flows. This reduction is linked to the 
underlying  exceptional  economic  conditions,  particularly  the  fall  in  interest  rates.  For  the  main  PSEO 
scheme,  for  example,  the  real  discount  rate  fell  from  3.0 %  at  the  end  of  2011  to  0.6 %  at  the  end  of 
2015. 

Amounts recognised in the Statement of Financial Performance 

2015 
Current service cost 
Interest cost 
Change in plan assets 
Sub-total – recorded in staff and 
pension costs 
Actuarial gains and losses 
Total recognised 

Pension 
Scheme of 
European 
Officials 

Other 
retirement 
benefit 
schemes 

Joint 
Sickness 
Insurance 
Scheme 

EUR millions 
Total 

2 981 
1 050 

4 031 

1 282 
5 313 

 68 
 24 

 92 

 84 
 176 

 243 
 140 
 (71) 
 312 

 674 
 986 

3 293 
1 214 
 (71) 
4 435 

2 040 
6 475 

Joint Sickness Insurance Scheme sensitivity 

A one percentage point change in assumed medical cost trend rates would have the following effects: 

The aggregate of the current service cost and interest cost 
components of net periodic post-employment medical costs 
The accumulated post-employment benefit obligation for 
medical costs 

One percentage 
point increase 
 88 

EUR millions 
One percentage 
point decrease 
 (54) 

2 765 

(1 686) 

66 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
Annual accounts of the European Union 2015 

2.10.  PROVISIONS 

Amount at 
31.12.2014 

Additional 
provisions 

 728 
1 091 

 332 
 30 
 102 
2 282 
1 537 

 252 
– 

 262 
 4 
 19 
 537 
 315 

Unused 
amounts 
reversed 
 (52) 
– 

 (0) 
 (30) 
 (19) 
 (101) 
 (48) 

Amounts 
used 

 (469) 
 (32) 

 (179) 
– 
 (24) 
 (703) 
 (22) 

Transfer 
to 
current 
– 
– 

– 
– 
– 
– 
 (87) 

EUR millions 

Change in 
estimation 

Amount at 
31.12.2015 

 0 
 19 

 (5) 
– 
 0 
 15 
 20 

 459 
1 078 

 411 
 4 
 79 
2 030 
1 716 

Legal cases 
Nuclear site 
dismantling 
Financial 
Fines 
Other 
Total 
Non-
current 

Current 

 745 

 222 

 (53) 

 (681) 

 87 

 (6) 

 314 

Legal cases 

This is the estimate of amounts that will probably have to be paid out after the year-end in relation to a 
number  of  on-going  legal  cases.  The  decrease  noted  in  2015  was  generated  by  the  use  of  previously 
created  provisions  for  legal  cases  relating  to  ERDF  financial  corrections  (EUR 457 million)  –  these  cases 
have been lost, and most of the amounts had been paid by year end. New provisions have been recorded 
in 2015 for legal cases relating to cohesion (EUR 120 million) and agriculture (EUR 123 million).  

Nuclear site dismantlement 

In  2014  the  basis  for  the  provision  was  updated  as  per  the  "2014  updated  JRC  Strategy  on 
Decommissioning and Waste Management" (D&WM). It represents the follow up of the comments raised 
by  the  Review  of the  JRC  D&WM  programme  made by  external  experts  in  2012.  In  accordance  with  EU 
accounting rules, this provision is indexed for inflation and then discounted to its net present value (using 
the Euro zero-coupon swap curve). At 31 December 2015, this results in a provision of EUR 1 078 million, 
split between amounts expected to be used in 2016 (EUR 25 million) and afterwards (EUR 1 053 million). 

In  view  of  the  estimated  duration  of  this  programme  (around  20  years),  it  should  be  pointed  out  that 
there  is  some  uncertainty  about  this  estimate,  and  the  final  cost  could  be  different  from  the  amounts 
currently recorded. 

Financial provisions 

These concern mainly provisions which represent the estimated losses that will be incurred in relation to 
the guarantees given by the different financial instruments, where the EIF and the EIB are empowered to 
issue guarantees in their own name but on behalf of and at the risk of the Commission. The financial risk 
linked  to  the  drawn  and  undrawn  guarantees  is,  however,  capped.  Non-current  financial  provisions  are 
discounted to their net present value (using the Euro Swap annual rate).  

67 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
Annual accounts of the European Union 2015 

2.11.  FINANCIAL LIABILITIES 

Non-current financial liabilities 
Borrowings 
Other financial liabilities 
Total 
Current financial liabilities 
Borrowings 
Other financial liabilities 
Total 
Total 

2.11.1.  Borrowings 

Borrowings 
Elimination: Guarantee Fund for external actions* 
Total 

Note 

31.12.2015 

31.12.2014 

EUR millions 

2.11.1 
2.11.2 

2.11.1 
2.11.2 

49 642 
2 122 
51 764 

7 218 
 721 
7 939 
59 703 

49 743 
2 108 
51 851 

8 727 
 101 
8 828 
60 680 

31.12.2015 
56 860 
- 
56 860 

EUR millions 
31.12.2014 
58 491 
 (20) 
58 470 

*  At  31.12.2014,  the  Guarantee  Fund  for  external  actions  held  EFSM  bonds  issued  by  the  Commission,  so  these  needed  to  be 
eliminated. 

Borrowings by financial instrument 

MFA 

Euratom 

BOP 

EFSM 

ECSC in 

Total at 31.12.2014 
New borrowings 
Repayments 
Exchange differences 
Changes in carrying amounts 
Total at 31.12.2015 
Non-current 
Current 

1 842 
1 245 
 (67) 
- 
 4 
3 024 
2 937 
 87 

 349 
- 
 (48) 
- 
- 
 301 
 251 
 50 

8 590 
- 
(2 700) 
- 
 (79) 
5 811 
4 200 
1 611 

47 507 
12 160 
(12 160) 
- 
 2 
47 509 
42 050 
5 459 

Liquid-     
dation 
 203 
- 
- 
 13 
 (1) 
 215 
 204 
 11 

EUR millions
Total 

58 491 
13 405 
(14 975) 
 13 
 (74) 
56 860 
49 642 
7 218 

Borrowings  mainly  include  debts  evidenced  by  certificates  amounting  to  EUR 56 656 million  (2014: 
EUR 58 261 million). The changes in carrying amount correspond to the change in accrued interests. 

Borrowings effective interest rates (expressed as a range of interest rates) 

Borrowings 
Macro Financial Assistance (MFA) 
Euratom 
Balance of Payment (BOP) 
European Financial Stability Mechanism (EFSM) 
ECSC in Liquidation 

31.12.2015 
0 % - 4.54 % 
0 % - 5.6775 % 
2.375 %  - 3.625 % 
0.625 % - 3.75 % 
6.92 % - 9.78 % 

31.12.2014 
0.181 % - 4.54 % 
0.138 % - 5.6775 % 
2.375 % - 3.625 % 
1.875 % - 3.750 % 
6.92 % - 9.78 % 

68 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
2.11.2.  Other financial liabilities 

Annual accounts of the European Union 2015 

31.12.2015 

EUR millions 
31.12.2014 

Non-current 
Finance lease liabilities 
Buildings paid for in instalments 
Financial guarantee liability relating to the European Fund 
for Strategic Investments (EFSI) 
Other 
Total 
Current 
Fines to be reimbursed 
Finance lease liabilities 
Buildings paid for in instalments 
Total 
Total 

Finance lease liabilities 

1 648 
 352 
– 

 122 
2 122 

 625 
 75 
 21 
 721 
2 842 

Description 

< 1 year 

Future amounts to be paid 
> 5 years 

1-5 years 

1 674 
 371 
- 

 63 
2 108 

– 
 81 
 20 
 101 
2 209 

EUR millions 

Total 
Liability 
1 711 
 13 
1 723 
 674 
2 396 

1 256 
– 
1 256 
 352 
1 608 

1 700 

2 489 

Land and buildings 
Other tangible assets 
Total at 31.12.2015 
Interest element 
Total future minimum lease 
payments at 31.12.2015 
Total future minimum lease payments at 
31.12.2014 

 69 
 6 
 75 
 57 
 132 

 151 

 385 
 7 
 392 
 265 
 658 

 638 

69 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
Annual accounts of the European Union 2015 

2.12.  PAYABLES 

Cost claims and 
invoices received 
from: 
Member States: 

European 
Agricultural Fund for 
Rural Development & 
other rural 
development 
instruments 
European Regional 
Development Fund & 
Cohesion Fund 
European Social 
Fund 
Other 

Private and public 
entities 
Total costs claims 
& invoices 
received 
European 
Agricultural 
Guarantee Fund 
Own Resources 
Payables 
Sundry Payables 

Other 

Total 

Gross 
Amount 

Adjust- 
ments* 

Net Amount 
at 
31.12.2015 

Gross 
Amount 

Adjust- 
ments* 

EUR millions
Net Amount 
at 
31.12.2014 

2 621 

 (230) 

2 391 

 318 

 (23) 

 295 

8 361 

 (950) 

7 411 

19 928 

(2 306) 

17 622 

3 355 

 434 

1 928 

 (2) 

3 353 

5 893 

 (272) 

 (102) 

 (223) 

 332 

1 705 

 751 

1 718 

 (93) 

 (106) 

5 621 

 658 

1 612 

16 699 

(1 507) 

15 192 

28 608 

(2 800) 

25 808 

6 851 

N/A 

6 851 

11 066 

N/A 

11 066 

9 506 

 356 

 286 

N/A 

N/A 

N/A 

9 506 

5 945 

 356 

 286 

 156 

 204 

N/A 

N/A 

N/A 

5 945 

 156 

 204 

33 698 

(1 507) 

32 191 

45 980 

(2 800) 

43 180 

* Estimated non-eligible amounts and pending prepayments. 

Payables  include  cost  statements  received  by  the  Commission  under  the  framework  of  grant  activities. 
They  are  credited  for  the  amount  being  claimed  from  the  moment  the  demand  is  received.  If  the 
counterpart  is  a  Member  State,  they  are  classified  as  such.  It  is  the  same  procedure  for  invoices  and 
credit  notes  received  under  procurement  activities.  The  cost  claims  concerned  have  been  taken  into 
account  through  the  year-end  cut-off  procedures.  Following  these  cut-off  entries,  estimated  eligible 
amounts have therefore been recorded in the accounts as expenses, while the remaining part is disclosed 
as “Estimated non-eligible amounts and pending prepayments” (see below).  

The biggest movement in payables is related to cohesion policy (EUR 10 763 million in 2015 compared to 
EUR 23 243 million  in  2014)  and  it  is  mainly  due  to  a  lower  level  of  submission  of  cost  statements  by 
Member States for the programming period 2007-2013. The cost statements submitted in relation to the 
programming  period  2014-2020  are  also  limited  because  the  Member  States  are  delayed  in  complying 
with one basic pre-requisite - designating the management and control authorities.  

Own resources payables refer to the contribution of Member States to the EU budget to be reimbursed at 
year-end  following  the  8th  amending  budget  of  2015.  The  significant  increase  compared  to  last  year  is 
due  to  the  late  adoption  of  amending  budget  8/2015  which  was  based  on  the  own  resource  regulation 
only paid to Member States in January 2016. 

Estimated non-eligible amounts and pending prepayments 

Payables are reduced by that part of the requests for reimbursement received, but not yet checked, that 
was estimated to be non-eligible. The largest amounts concern the Structural Actions DGs. Payables are 
also reduced by the part of requests for reimbursement received concerning other advances to Member 
States (see note 2.5.2) still to pay at year end (EUR 770 million).  

70 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Requests for pre-financing 

Annual accounts of the European Union 2015 

In addition to the above amounts, EUR 711 million of requests for pre-financing have been received and 
were  not  yet paid  at  year-end.  According to the  EU  accounting  rules, these  amounts  are  not  booked  as 
payables. 

2.13.  ACCRUED CHARGES AND DEFERRED INCOME 

Accrued charges 
Deferred income 
Other 
Total 

31.12.2015 
67 358 
 869 
 175 
68 402 

EUR millions 
31.12.2014 
55 798 
 56 
 118 
55 973 

The increase in accrued charges is due to the start of implementation of the 2014-2020 MFF where the 
Commission has estimated costs incurred under the new MFF but where cost claims are not yet received. 

The  increase  in  deferred  income  is  due  to  advance  payments  of  EUR 726 million  for  own  resources 
contributions.  Such  payments  are  rather  common – in  2014  EUR 557 million had  been  paid  in  advance, 
but  the  amount  was  part  of  the  amounts  payable.  As  of  2015  it  was  decided  that  the  nature  of  these 
amounts is deferred income and should be disclosed as such. 

The split of accrued charges is as follows: 

European Agricultural Guarantee Fund 
European Agricultural Fund for Rural Development & other 
rural development instruments 
European Regional Development Fund and Cohesion Fund 
European Social Fund 
Other 
Total 

31.12.2015 
38 263 
14 806 

5 026 
2 636 
6 627 
67 358 

EUR millions 
31.12.2014 
33 667 
13 414 

3 157 
 976 
4 584 
55 798 

71 

 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

Note 
2.14.1 
2.14.2 
2.14.3 

31.12.2015 
 292 
2 561 
1 829 
4 682 

EUR millions 

31.12.2014 
 238 
2 372 
1 825 
4 435 

NET ASSETS 

2.14.  RESERVES 

Fair value reserve 
Guarantee Fund reserve 
Other reserves 
Total 

2.14.1.  Fair value reserve 

In  accordance  with  the  EU  accounting  rules,  the  adjustment  to  fair  value  of  available  for  sale  financial 
assets is accounted for through the fair value reserve. 

Movements of the fair value reserve relating to available for sale financial assets during the period: 

Included in fair value reserve 
Included in the statement of financial performance 
Total 

2015 
 79 
 (33) 
 46 

EUR millions 
2014 
 135 
 (10) 
 125 

In addition, an amount of EUR 7 million (2014: EUR 15 million) in the overall movement of the fair value 
reserve relates to investments accounted for using the equity method. 

2.14.2.  Guarantee Fund reserve 

This reserve reflects the 9 % target amount of the outstanding amounts guaranteed by the Fund that is 
required to be kept as assets. 

2.14.3.  Other reserves 

The amount relates primarily to the ECSC in liquidation reserve (EUR 1 534 million) for the assets of the 
Research Fund for Coal and Steel, which was created in the context of the winding-up of the ECSC. 

2.15.  AMOUNTS TO BE CALLED FROM MEMBER STATES 

Amounts to be called from Member States at 31.12.2014 
Return of 2014 budget surplus to Member States 
Movement in Guarantee Fund reserve 
Other reserve movements 
Economic result of the year 
Amounts to be called from Member States at 31.12.2015 

EUR millions  

62 441 
1 435 
 189 
 26 
13 033 
77 124 

This  amount  represents  that  part  of  the  expenses  incurred  by  the  EU  up  to  31 December  that  must  be 
funded  by  future  budgets.  Many  expenses  are  recognised  under  accrual  accounting  rules  in  the  year  N 
although they may be actually paid in year N+1 (or later) and therefore funded using the budget of year 
N+1  (or  later).  The  inclusion  in  the  accounts  of  these  liabilities  coupled  with  the  fact  that  the 
corresponding amounts are financed from future budgets, results in liabilities greatly exceeding assets at 
the  year-end.  The  most  significant  amounts  to  be  highlighted  are  the  European  Agricultural  Guarantee 
Fund  activities.  The  majority  of  the  amounts  to  be  called  are  in  fact  paid  by  the  Member  States  in  less 
than 12 months after the end of the financial year in question as part of the budget of the following year.  

It should also be noted that the above has no effect on the budget result – budget revenue should always 
equal or exceed budget expenditure and any excess of revenue is returned to Member States. 

72 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

3.  NOTES TO THE STATEMENT OF FINANCIAL 

PERFORMANCE 

REVENUE 

REVENUE FROM NON-EXCHANGE TRANSACTIONS 

3.1.  GNI RESOURCES 

Own resources revenue is the primary element of the EU's operating revenue. Of the three categories of 
own  resources,  traditional  own  resources  ("TOR"),  the  VAT-based  resources  and  the  GNI-based 
resources, the GNI revenue of EUR 95 355 million (2014: EUR 104 688 million) is the most significant. 

3.2.  TRADITIONAL OWN RESOURCES 

Customs duties 
Sugar levies 
Total 

2015 
18 524 
 125 
18 649 

EUR millions 
2014 
17 204 
 (67) 
17 137 

Traditional  own  resources  comprise  custom  duties  and  sugar  levies.  Member  States  retain,  by  way  of 
collection  costs,  20 %  of  traditional  own  resources,  and  the  above  amounts  are  shown  net  of  this 
deduction. 

3.3.  VAT RESOURCES 

The VAT resource is levied on Member States’ VAT bases, which are notionally harmonised in accordance 
with EU rules for this purpose. The VAT contribution is calculated applying a uniform rate of call of 0.3 % 
to  the  base  of  each  Member  State.  For  the  period  2014-2020,  the  Council  Decision  5602/14  foresees  a 
reduced rate of call (0.15 %) for Germany, the Netherlands and Sweden.  

REVENUE FROM NON-EXCHANGE TRANSACTIONS: 
TRANSFERS 

3.4.  FINES 

These revenues of EUR 531 million (2014: EUR 2 297 million) relate to fines imposed by the Commission 
for  breach  of  infringement  rules,  mainly  related to  competition  cases.  Receivables  and  related  revenues 
are recognised when the Commission decision imposing a fine has been taken and it is officially notified 
to  the  addressee.  The  main  amounts  in  2015  concern  the  markets  for  optical  disk  drives 
(EUR 116 million) and retail food packaging (EUR 116 million). 

73 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

3.5.  RECOVERY OF EXPENSES 

Shared management 
Direct management 
Indirect management 
Total 

2015 
1 465 
 76 
 6 
1 547 

EUR millions 

2014 
3 328 
 45 
 45 
3 418 

This heading mainly represents the recovery orders issued by the Commission that are cashed or offset 
against  (i.e.  deducted  from)  subsequent  payments  recorded  in  the  Commission's  accounting  system, 
made so as to recover expenditure previously paid out from the general budget. Recoveries are based on 
controls,  audits  or  eligibility  analysis  and  therefore,  these  actions  are  an  important  consideration  in 
implementing  the  EU  budget.  These  operations  protect  the  EU  budget  from  expenditure  incurred  in 
breach  of  law  and  are  particularly  important  since  the  audit  results  of  the  European  Court  of  Auditors 
have  found  a  material  level  of  error  in  payments  made  from  the  EU  budget  –  see  the  Court's  annual 
report including the statement of assurance on the legality and regularity of the underlying transactions. 

Recovery orders issued by Member States to beneficiaries of EAGF expenditure, as well as the variation of 
accrued income estimations from the previous year-end to the current, are also included.  

The  amounts  included  in  the  above  table  represent  revenue  incurred  through  the  issuance  of  recovery 
orders.  For  this  reason,  these  figures  cannot  and  do  not  show  the  full  extent  of  the  measures  taken  to 
protect the EU budget, particularly for Cohesion policy where specific mechanisms are in place to ensure 
the  correction  of  ineligible  expenditure,  most  of  which  do  not  involve  the  issuance  of  a  recovery  order. 
Not  included  are  amounts  recovered  through  offsetting  with  expenses,  amounts  recovered  by  way  of 
withdrawals and recoveries of pre-financing amounts. 

Shared management makes up the bulk of the total: 

Agriculture: EAGF and rural development 

In the framework of the EAGF and the EAFRD, amounts accounted for as revenue of the year under this 
heading  are  financial  corrections  of  the  year  and  reimbursements  declared  by  Member  States  and 
recovered  during  the  year,  as  well  as  the  net increase  in  the  outstanding  amounts  declared  by  Member 
States to be recovered at year-end concerning fraud and irregularities. 

Cohesion policy 

The  main  amounts  related  to  Cohesion  policy  include  recovery  orders  issued  by  the  Commission  to 
recover undue expenditure made in previous years and deductions from expenditure less the decrease in 
accrued income at year-end. 

3.6.  OTHER REVENUE FROM NON-EXCHANGE 

TRANSACTIONS 

Staff taxes and contributions 
Budgetary adjustments 
Contributions from third countries  
Agricultural levies 
Transfer of assets 
Adjustment of provisions 
Other 
Total 

74 

2015 
1 115 
 984 
 946 
 814 
 197 
 71 
 939 
5 067 

EUR millions 

2014 
1 276 
 794 
 726 
 409 
1 448 
 369 
 600 
5 623 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

Staff taxes and contributions revenue arises primarily from deductions from staff salaries and is made up 
of two significant amounts – staff pension contributions and taxes on income. 

The budgetary adjustments include the budget surplus from 2014 (EUR 1 435 million) which is indirectly 
refunded  to  Member  States  by  deduction  of  the  amounts  of  own  resources  they  have  to  transfer  to the 
EU in the following year – thus it is a revenue for 2015. 

Contributions from third countries are contributions from EFTA countries and accession countries. 

Agricultural  levies  concern  milk  levies  which  are  a  market  management  tool  aimed  at  penalising  milk 
producers who exceed their reference quantities. As it is not linked to prior payments by the Commission, 
it is in practice considered as revenue for a specific purpose. The increase in milk levies this year is due 
primarily to the superlevy of EUR 811 million. 

Transfer  of  assets  revenue  relates  mainly  to  the  transfer  of  satellites  under  the  Copernicus  programme 
(former  GMES  programme)  from  the  European  Space  Agency  (ESA)  to  the  Commission  (see  note  2.2). 
This transfer is a non-exchange transaction according to the EU accounting rules and will occur in future 
periods for the remaining Copernicus satellites currently under construction. 

REVENUE FROM EXCHANGE TRANSACTIONS 

3.7.  FINANCIAL INCOME 

Interest income on: 
Pre-financing 
Late payments 
Available for sale financial assets 
Loans 
Cash and cash equivalents 
Impaired financial assets 
Other  
Interest income 
Dividend income 
Realised gains on sale of financial assets 
Other financial income 
Total 

2015 

 9 
 20 
 56 
1 616 
 14 
 7 
 0 
1 721 
 8 
 50 
 66 
1 846 

EUR millions 
2014 

 16 
 387 
 65 
1 722 
 10 
– 
 1 
2 202 
 6 
 30 
 61 
2 298 

Interest income on loans relates mainly to loans granted from borrowed funds (see note 2.4.2). 

Net gains or losses on financial assets 

Net gains/(losses) on available for sale financial assets 

2015 
 3 

EUR millions 
2014 
 13 

3.8.  OTHER REVENUE FROM EXCHANGE TRANSACTIONS 

Foreign exchange gains 
Fee revenue for rendering of services 
Sales of goods 
Fee and premium revenue related to financial instruments 
Property, plant and equipment related revenue 
Other 
Total 

75 

2015 
 970 
 358 
 43 
 43 
 4 
 145 
1 562 

EUR millions 
2014 
 478 
 323 
 44 
 59 
 16 
 146 
1 066 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

EXPENSES 

TRANSFER PAYMENTS AND SUBSIDIES BY MANAGEMENT 
MODE 

3.9.  SHARED MANAGEMENT 

Implemented by Member States 
European Agricultural Guarantee Fund 
European Agricultural Fund for Rural Development & other 
rural development instruments 
European Regional Development Fund and Cohesion Fund 
European Social Fund 
Other 
Total 

2015 
45 032 
16 376 

38 745 
9 849 
2 380 
112 382 

EUR millions 
2014 
44 465 
14 046 

43 345 
12 651 
2 307 
116 814 

The  transition  from  the  former  programming  period  2007-2013  to  the  period  2014-2020  explains  the 
reduction  of  expenses  for  the  cohesion  area:  the  costs  declared  for  the  previous  period  are  decreasing, 
while the costs related to the current period are low, due to the slow start of its implementation.  

The  sub-heading  ‘Other’  mainly  includes:  Internal  Security  (EUR 509 million),  Fisheries  and  Maritime 
Affairs (EUR 503 million), the Instrument for Pre-Accession Assistance (EUR 492 million) and Asylum and 
Migration (EUR 299 million). 

3.10.  DIRECT MANAGEMENT 

Implemented by the Commission 
Implemented by EU Executive Agencies 
Implemented by Trust funds 
Total 

2015 
10 089 
5 532 
 6 
15 626 

EUR millions 
2014 
10 431 
4 880 
– 
15 311 

These  amounts  mainly  concern  the  implementation  of  Research  Policy  (EUR 6.9 billion)  and  Networks 
Programmes  (EUR 1.7 billion),  as  well  as  European  Neighbourhood  Policy  (EUR 1.6 billion)  and 
Development Co-operation Instruments (EUR 1.3 billion). 

3.11.  INDIRECT MANAGEMENT 

Implemented by other EU agencies & bodies 
Implemented by third countries 
Implemented by international organisations 
Implemented by other entities 
Total 

2015 
1 209 
 905 
2 127 
2 107 
6 348 

EUR millions 

2014 
1 025 
1 005 
1 765 
1 799 
5 594 

76 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
Annual accounts of the European Union 2015 

3.12.  STAFF AND PENSION COSTS 

Staff costs 
Pension costs 
Total 

2015 
5 838 
4 435 
10 273 

EUR millions 
2014 
5 693 
3 970 
9 662 

Pension costs represent elements of the movements that have arisen following the actuarial valuation of 
the employee benefits liabilities other than actuarial assumptions. 

3.13.  CHANGES IN EMPLOYEE BENEFITS ACTUARIAL 

ASSUMPTIONS 

The actuarial loss of net EUR 2 billion shown under this heading relates to the employee benefits liabilities 
recognised on the balance sheet (see note 2.9). 

3.14.   FINANCE COSTS 

Interest expenses: 
  Borrowings 
  Other 
Finance leases 
Impairment losses on available for sale financial assets 
Impairment losses on loans and receivables 
Realised loss on sale of financial assets 
Other finance costs 
Total 

2015 

1 607 
 21 
 91 
 27 
 174 
 3 
 63 
1 986 

EUR millions 
2014 

1 712 
 22 
 90 
 3 
1 030 
 17 
 51 
2 926 

The  amount  of  interest  expense  on  borrowings  corresponds  to  interest  income  on  loans  (back-to-back 
transactions). 

3.15.  SHARE OF NET RESULT OF JOINT VENTURES AND 

ASSOCIATES 

In  accordance  with  the  equity  method  of  accounting,  the  EU  includes  in  its  statement  of  financial 
performance  its  share  of  the  net  result  of  its  joint  ventures  and  associates  (see  also  notes  2.3.1  and 
2.3.2). 

77 

 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
Annual accounts of the European Union 2015 

3.16.  OTHER EXPENSES 

Administrative and IT expenses 
Property, plant and equipment related expenses 
Reduction of fines by the Court of Justice 
Foreign exchange losses 
Adjustment of provisions 
Other 
Total 

2015 
2 419 
1 304 
1 137 
 785 
 520 
 458 
6 623 

EUR millions 

2014 
2 070 
1 186 
– 
 370 
 688 
839 
5 152 

The  increase  in  other  expenses  is  mainly  due  to  the  write-off  of  fines,  where  the  Court  of  Justice  has 
decided in  favour  of  the  fined  undertaking.  These  amounts  were  in previous  years  shown  under  finance 
costs.  In  2015,  it  was  decided  that  the  nature  of  these  amounts  is  not  related  to  the  impairment  of 
financial instruments and therefore it is included under this heading. 

Expenses  relating  to  research  and  development  are  included  in  administrative  and  IT  expenses  and  are 
as follows: 

Research costs 
Non-capitalised development costs 
Total 

2015 
 384 
 60 
 443 

EUR millions  
2014 
 353 
 54 
 406 

Included  under  Property,  plant  and  equipment  related  expenses  are  EUR 373 million  (2014: 
EUR 369 million) relating to operating leases. Amounts committed to be paid during the remaining term 
of these lease contracts are as follows: 

Buildings 
IT materials and other equipment 
Total 

Future amounts to be paid 

< 1 year 
 366 
 8 
 374 

1- 5 years 
1 086 
 11 
1 097 

> 5 years 
1 040 
 0 
1 040 

EUR millions 

Total 
2 491 
 20 
2 511 

78 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

3.17.  SEGMENT REPORTING BY MULTI ANNUAL FINANCIAL FRAMEWORK HEADING (MFF) 

Smart and 
inclusive 
growth 

Sustainable 
growth 

Security 
and 
citizenship 

Global 
Europe 

Administration 

GNI resources 
Traditional own resources 
VAT 
Fines 
Recovery of expenses 
Other 
Revenue from non-exchange transactions 
Financial income 
Other 
Revenue from exchange transactions 

Total revenue 

Expenses implemented by Member States: 
  EAGF 
  EAFRD & other rural development instruments 
  ERDF & CF 
  ESF 
  Other 
Implemented by the EC, executive agencies and 
trust funds 
Implemented by other EU agencies and bodies 
Implemented by third countries and int. org. 
Implemented by other entities 
Staff and Pension costs 
Changes in employee benefits actuarial 
assumptions 
Finance costs 
Share of net deficit of joint ventures / 
associates 
Other expenses 

Total expenses 
Economic result of the year 

– 
– 
– 
– 
 103 
 875 
 978 
 61 
 105 
 167 

1 144 

– 
– 
(38 745) 
(9 849) 
 (181) 
(9 813) 

 (994) 
 (343) 
(1 552) 
(1 534) 
– 

 (89) 
 (641) 

(1 223) 

(64 964) 
(63 820) 

– 
– 
– 
– 
1 408 
 869 
2 278 
 2 
 (10) 
 (8) 

2 270 

(45 032) 
(16 376) 
– 
– 
 (517) 
 (464) 

 (51) 
 (0) 
– 
 (329) 
– 

 (63) 
– 

– 
– 
– 
– 
 14 
 3 
 18 
 0 
 (9) 
 (9) 

 9 

– 
– 
– 
– 
 (908) 
 (799) 

 (551) 
 1 
 (0) 
 (370) 
– 

 (1) 
– 

– 
– 
– 
– 
 21 
 1 
 22 
 29 
 34 
 63 

 85 

– 
– 
– 
– 
 (773) 
(4 545) 

 (19) 
(2 661) 
 (555) 
 (569) 
– 

 (18) 
– 

 (181) 

(63 014) 
(60 744) 

 (122) 

(2 750) 
(2 741) 

 (121) 

(9 262) 
(9 177) 

– 
– 
– 
– 
 0 
4 522 
4 522 
 1 
 289 
 290 

4 812 

– 
– 
– 
– 
– 
 (13) 

– 
 0 
 (0) 
(6 617) 
(2 040) 

 (136) 
– 

(4 104) 

(12 911) 
(8 098) 

Not 
assigned to 
MFF 
heading* 
95 355 
18 649 
18 328 
 531 
 0 
(1 204) 
131 659 
1 753 
1 153 
2 906 

134 565 

– 
– 
– 
– 
– 
 8 

 407 
 (29) 
– 
 (854) 
– 

(1 678) 
– 

 (872) 

(3 019) 
131 547 

EUR millions 

Total 

95 355 
18 649 
18 328 
 531 
1 547 
5 067 
139 478 
1 846 
1 562 
3 408 

142 886 

(45 032) 
(16 376) 
(38 745) 
(9 849) 
(2 380) 
(15 626) 

(1 209) 
(3 031) 
(2 107) 
(10 273) 
(2 040) 

(1 986) 
 (641) 

(6 623) 

(155 919) 
(13 033) 

* 

"Not-assigned to MFF heading" includes consolidated entities' budget execution and consolidation eliminations, off-budget operations and unallocated immaterial programmes. 

The display of revenue and expenses by MFF heading is based on estimation as not all commitments are linked to an MFF heading.  

79 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

4.  NOTES TO THE CASHFLOW STATEMENT 

4.1.  PURPOSE AND PREPARATION OF THE CASHFLOW 

STATEMENT 

Cashflow information is used to provide a basis for assessing the ability of the EU to generate cash and 
cash equivalents, and its needs to utilise those cashflows. 

The  cashflow  statement is  prepared  using  the indirect  method.  This  means  that  the  economic  result  for 
the  financial  year  is  adjusted  for  the  effects  of  transactions  of  a  non-cash  nature,  any  deferrals  or 
accruals  of  past  or  future  operating  cash  receipts  or  payments,  and  items  of  revenue  or  expense 
associated with investing cashflows. 

Cashflows  arising  from  transactions  in  a  foreign  currency  are  recorded  in  the  EU’s  reporting  currency 
(Euro), by applying to the foreign currency amount the exchange rate between the euro and the foreign 
currency at the date of the cashflow. 

The  cashflow  statement  reports  cashflows  during  the  period  classified  by  operating  and  investing 
activities (the EU does not have financing activities). 

4.2.  OPERATING ACTIVITIES 

Operating activities are the activities of the EU that are not investing activities. These are the majority of 
the activities performed. Loans granted to beneficiaries (and the related borrowings, when applicable) are 
not  considered  as  investing  (or  financing)  activities  as  they  are  part  of  the  general  objectives  and  thus 
daily operations of the EU. Operating activities also include investments such as EIF,  EBRD and venture 
capital  funds.  Indeed,  the  objective  of  these  activities  is  to  contribute  to  the  achievement  of  policy 
targeted outcomes. 

4.3.  INVESTING ACTIVITIES 

Investing  activities  are  the  acquisition  and  disposal  of  intangible  assets  and  property,  plant  and 
equipment  and  of  other  investments  which  are  not  included  in  cash  equivalents.  Investing  activities  do 
not include loans granted to beneficiaries. The objective is to show the real investments made by the EU. 

80 

 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

5. 

CONTINGENT ASSETS & LIABILITIES AND 
OTHER SIGNIFICANT DISCLOSURES 

5.1.  CONTINGENT ASSETS 

Guarantees received: 
   Performance guarantees 
   Other guarantees 
Other contingent assets 
Total 

31.12.2015 

EUR millions 
31.12.2014 

 398 
 27 
 48 
 474 

 400 
 27 
 49 
 476 

Performance guarantees are requested to ensure that beneficiaries of EU funding meet the obligations of 
their contracts with the EU. 

5.2. 

 CONTINGENT LIABILITIES 

Guarantees given 
Fines 
EAGF, rural development and pre-accession 
Cohesion policy 
Legal cases and other disputes 
Other contingent liabilities 
Total 

Note 
5.2.1 
5.2.2 
5.2.3 
5.2.4 
5.2.5 

31.12.2015 
21 401 
3 951 
1 377 
 3 
 795 
 58 
27 584 

EUR millions 

31.12.2014 
20 862 
5 602 
 505 
 9 
 789 
 5 
27 772 

All contingent liabilities, except those relating to fines, would be financed, should they fall due, by the EU 
budget in the years to come. 

5.2.1.  Guarantees given 

Guarantees on loans granted by the EIB 
  65% guarantee 
  70% guarantee 
  75% guarantee 
  100% guarantee 
Total 
Guarantee on EFSI portfolio 
Other guarantees given 
Total 

31.12.2015 

EUR millions 
31.12.2014 

18 712 
 356 
 112 
 270 
19 450 
 202 
1 749 
21 401 

18 283 
 447 
 168 
 300 
19 198 
- 
1 664 
20 862 

Guarantees on loans granted by the EIB – Guarantee Fund for external actions 

The EU budget guarantees loans signed and granted by the EIB from its own resources to third countries 
(including loans granted to Member States before accession). However, the EU’s guarantee is limited to a 
percentage of the ceiling of the credit lines authorised: 65 % (for agreements signed until 2007), 70 %, 
75 %  or  100 %.  Where  the  ceiling  is  not  reached,  the  EU  guarantee  covers  the  full  amount.  For 
agreements  signed  after  2007  (mandates  2007-2013  and  2014-2020),  the  EU’s  guarantee  is  limited  to 
65 %  of  the  outstanding  balances  and  not  to  the  credit  lines  authorised.  At  31 December 2015  the 
amount  outstanding  totalled  EUR 19 450 million  and  this,  therefore,  is the  maximum  exposure  faced  by 
the  EU.  At  31 December 2015,  about  82 %  of  EIB  lending  operations  (sovereign  and  sub-sovereign 

81 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

lending  operations)  are  covered  by  a  comprehensive  guarantee,  while  on  the  remaining  operations  the 
EIB benefits from political risk coverage only. 

EU guarantee on European Fund for Strategic Investments (EFSI) portfolio 

The  EU  guarantee  granted  to  the  EIB  group  under  the  EFSI  is  accounted  for  as  a  financial  guarantee 
liability  in  respect  of  the  debt  portfolio  and  as  a  contingent  liability  for  both  debt  and  equity  portfolios. 
The Accounting Officer, with the unanimous support of the EU Advisory Group of Experts on Accounting 
Standards,  has  concluded  that  the  control  criteria  and  the  accounting  requirements  for  consolidation  of 
the  EU  accounting  rules  (and  IPSAS)  are  not  met.  Consequently,  the  related  financial  assets  are  not 
accounted for in the consolidated annual accounts of the EU. 

Under  the  EFSI  debt  portfolio,  the  EU  guarantee  covers  the  first  loss  piece  of  a  portfolio  of  financing 
operations entered into by the EIB, which are mainly standard loans and guarantees. The EU guarantee is 
called when the debtor fails to make a payment when due or in the case of restructuring losses. The EU is 
remunerated in proportion to the risk taken in the form of a distribution, between the EIB and the EU, of 
the risk related revenues to be received by EIB  from the EFSI guaranteed operations. The  EU revenues 
should first cover the losses incurred on the EFSI guaranteed operations. The EU guarantee is therefore 
accounted  for  as  a  financial  guarantee  liability  and  measured,  at  initial  recognition,  at  fair  value,  being 
the net present value of the premiums receivable (the EU revenues). At subsequent balance sheet dates, 
the financial guarantee liability is measured at the higher of the expected losses and the amount initially 
recognised less, when appropriate, the accumulated amortisation of the revenue. The financial guarantee 
liability is presented net of the EU revenues still to be received. 

Under  the  EFSI  Infrastructure  and  Innovation  Window  (IIW)  equity  portfolio,  which  consists  of  direct 
equity or quasi equity participations or subordinated loans, the EIB invests pari-passu at its own risk and 
also at the risk of the EU. Consequently, the EU guarantee covers for the part of the equity investments 
guaranteed  by  the  EU,  the  negative  value  adjustments  (unrealised  losses)  at  each  balance  sheet  date, 
the  realised  losses  at  dis-investment  and  the  EIB  funding  costs.  In  cases  where  the  value  of  an 
investment,  which  was  previously  subject  to  a  negative  value  adjustment,  increases  at  subsequent 
reporting dates, the amount up to the original cost of the investment is reimbursed by the EIB to the EU. 
At  the  time  of  the  dis-investment,  the  EU  is  also  entitled  to  gains  on  the  investment  exceeding  the 
original  cost.  The  EU  is  remunerated  by  revenues  received  by  the  EIB  from  the  guaranteed  operations, 
including  interests,  dividends  and  realised  gains.  The  settlement  between  the  EU  and  the  EIB  happens 
annually net of losses and revenues. At 31 December 2015, EUR 7.6 million of EU guaranteed operations 
under the IIW equity portfolio have been invested, which were recorded as a contingent liability.  

Discussions on the Small- and Medium-size Enterprises Window (SMEW) equity portfolio, which was not 
implemented  in  2015,  are  still  ongoing  between  the  Commission  and  the  EIB  Group.  The  accounting 
treatment  of  the  equity  operations  will  be  established  by  the  Accounting  Officer  after  consulting  the  EU 
Advisory Group of Experts on Accounting Standards once the amended legal basis has been finalised. 

The  amount  disclosed  as  a  contingent  liability  represents  amounts  which  are  actually  committed  and 
disbursed by the EIB/EIF for the EFSI guaranteed operations (both debt and equity portfolio) at year-end, 
but which exceed the net expected losses. Amounts committed and disbursed by the EIB/EIF for the EFSI 
guaranteed operations which equal the net expected losses are recognised as financial guarantee liability 
(zero  value  at  31  December  2015)  –  see  note  2.11.2.  The  total  unused  EU  guarantee  up  to  the 
EUR 16 billion  maximum  is  disclosed  as  significant  legal  commitments  -  see  note  5.3.2.  This  amount 
includes operations of the COSME and H2020 programmes which are temporarily covered by the EFSI EU 
guarantee.  

Other guarantees given 

Other  guarantees  given  relate  mainly  to  EUR 845 million  to  the  Risk-Sharing  Finance  Facility  (2014: 
EUR 883 million),  EUR 459 million  to  Horizon  2020  (2014:  EUR 365 million),  EUR 220 million  to  the 
Project  Bond  Initiative  (2014:  EUR 138 million)  and  EUR 209 million  to  the  Loan  Guarantee  Instrument 
for TEN-T Projects (2014: EUR 209 million). 

82 

 
 
 
5.2.2. 

Fines 

Annual accounts of the European Union 2015 

These amounts concern fines imposed by the Commission for infringement of competition rules that have 
been provisionally paid and where either an appeal has been lodged or where it is unknown if an appeal 
will  be  made.  The  contingent  liability  will  be  maintained  until  a  decision  by  the  Court  of  Justice  on  the 
case is final. Interest earned on provisional payments is included in the economic result of the year and 
also as a contingent liability to reflect the uncertainty of the Commission’s title to these amounts. 

5.2.3. 

EAGF, rural development and pre-accession 

These  are  contingent  liabilities  towards  the  Member  States  connected  with  the  EAGF  conformity 
decisions,  rural  development  and  pre-accession  financial  corrections  pending  judgement  of  the  Court  of 
Justice.  The  determination  of  the  final  amount  of  the  liability  and  the  year  in  which  the  effect  of 
successful  appeals  will  be  charged  to  the  budget  will  depend  on  the  length  of  the  procedure  before  the 
Court. 

5.2.4.  Cohesion policy 

These  are  contingent  liabilities  towards  the  Member  States  in  conjunction  with  actions  under  cohesion 
policy awaiting the oral hearing date or pending judgement of the Court of Justice. 

5.2.5. 

Legal cases and other disputes 

This heading relates to actions for damages currently being brought against the EU, other legal disputes 
and the estimated legal costs. It should be noted that in an action for damages under Article 288 EC the 
applicant  must  demonstrate  a  sufficiently  serious  breach  by  the  institution  of  a  rule  of  law  intended  to 
confer  rights  on  individuals,  real  harm  suffered  by  the  applicant,  and  a  direct  causal  link  between  the 
unlawful act and the harm. 

5.3.  OTHER SIGNIFICANT DISCLOSURES 

5.3.1.  Outstanding budgetary commitments not yet expensed 

Outstanding budgetary commitments not yet expensed 

31.12.2015 
177 477 

EUR millions 
31.12.2014 
144 741 

The  amount  disclosed  above  is  the  budgetary  RAL  ("Reste  à  Liquider")  less  related  amounts  that  have 
been  included  as  expenses  in  the  2015  statement  of  financial  performance.  The  budgetary  RAL  is  an 
amount  representing  the  open  commitments  for  which  payments  and/or  de-commitments  have  not  yet 
been  made.  This  is  the  normal  consequence  of  the  existence  of  multi-annual  programmes.  At 
31 December 2015 the budgetary RAL totalled EUR 217 692 million (2014: EUR 189 585 million). 

5.3.2.  Significant legal commitments 

Multiannual actions under shared management 
European Fund for Strategic Investments (EFSI) 
Connecting Europe Facility (CEF) 
Copernicus 
Fisheries agreements 
Galileo 
Protocol with Mediterranean countries 
Other contractual commitments 
Total 

31.12.2015 
343 715 
16 000 
10 051 
2 939 
 373 
124 
 – 
3 101 
376 303 

EUR millions 
31.12.2014 
433 527 
– 
– 
3 476 
 176 
719 
 264 
3 127 
441 288 

These  commitments  originated  because  the  EU  entered  into  long-term  legal  commitments  in  respect  of 
amounts that were not yet covered by commitment appropriations in the budget. This can relate to multi-

83 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

annual programmes such as Structural Actions or amounts that the EU is committed to pay in the future 
under  administrative  contracts  existing  at  the  balance  sheet  date  (e.g.  relating  to  the  provision  of 
services  such  as  security,  cleaning,  etc,  but  also  contractual  commitments  concerning  specific  projects 
such  as  building  works).  The  significant  increase  of  legal  commitments  relating  to  Structural  Actions  is 
due to the start of the 2014-2020 MFF during the reporting period. 

Multiannual actions under shared management 

The  table  below  shows  a  comparison  between  the  legal  commitments  for  which  budget  commitments 
have not yet been made and the maximum commitments in relation to the amounts foreseen in the MFF 
2014-2020,  headings  1B,  2  and  3.  The  future  obligations  represent  the  outstanding  amounts  for  which 
the Commission is still committed to make payments after 31 December 2015.  

Financial 
framework 
2014-2020 
(A) 

Legal 
commitments 
concluded (B) 

Budget 
commit-
ments 
 (C ) 

Decommit-   
ments  
(D) 

EUR millions 

Legal 
commitments 
less budget 
commitments 
(=B-C+D) 

Future 
obligations   
(=A-C) 

Funds 

European Regional 
Development Fund and 
Cohesion Fund 
European Social Fund 
Fund for European Aid to 
the most Deprived 
HEADING 1B: 
COHESION POLICY 
FUNDS 
European Agricultural 
Fund for Rural 
Development  
European Maritime and 
Fisheries Fund 
HEADING 2: NATURAL 
RESOURCES 
Asylum and Migration 
Fund 
Internal Security Fund 
HEADING 3: SECURITY 
& CITIZENSHIP 

259 802 

259 802 

66 572 

89 624 

3 814 

89 624 

26 410 

3 814 

1 036 

353 239 

353 239 

94 018 

99 348 

98 786 

23 414 

5 749 

5 749 

1 586 

105 097 

104 535 

25 000 

3 371 

2 195 

5 566 

 631 

 538 

 631 

 538 

1 169 

1 169 

Total 

463 902 

458 943 

120 187 

European Fund for Strategic Investments (EFSI) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

193 230 

193 230 

63 213 

63 213 

2 777 

2 777 

259 221 

259 221 

75 371 

75 933 

4 163 

4 163 

79 535 

80 096 

 0 

– 

 0 

2 741 

1 657 

4 398 

338 755 

343 715 

These commitments relate to the legal commitments that have not been used at year-end in relation to 
the total EU guarantee of EUR 16 billion. 

EFSI legal commitment outstanding at year-end 
of which 
  Financial guarantee liability relating to EFSI 
  Contingent liability relating to EFSI 

Connecting Europe Facility 

EUR millions 
31.12.2015 
16 000 

– 
 202 

The CEF provides financial assistance to trans-European networks in order to support projects of common 
interest in the sectors of transport, telecommunications and energy infrastructures.  

Copernicus 

Copernicus is the European Earth observation programme – see also note 2.2.  

84 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
Fisheries agreements 

Annual accounts of the European Union 2015 

These  are  commitments  entered  into  with  third  countries  for  operations  under  international  fisheries 
agreements. 

Protocols with Mediterranean countries   

A recent analysis has shown that there is no longer any legal basis for any on-going liability, contingent 
or otherwise in relation to these protocols.  

Galileo 

These  are  amounts  committed  to  the  Galileo  programme  developing  a  European  Global  Navigation 
Satellite System – see also note 2.2. 

Other contractual commitments 

The amounts included under this disclosure correspond to amounts committed to be paid during the term 
of the contracts. The largest amounts included here relate to EUR 2 023 million for the Fusion for Energy 
Agency  in  the  context  of  the  ITER  project  and  also  EUR 388 million  mainly  for  building  contracts  of  the 
European Parliament. 

85 

 
 
Annual accounts of the European Union 2015 

6. 

FINANCIAL RISK MANAGEMENT 

The following disclosures with regard to the financial risk management of the EU relate to: 

- 

- 

- 

- 

- 

Lending  and  borrowing  activities  carried  out  by  the  Commission  through:  EFSM,  BOP,  MFA,  and 
Euratom actions and the ECSC in Liquidation;  

The  treasury  operations  carried  out  by  the  Commission  in  order  to  implement  the  EU  budget, 
including the receipt of fines;  

The Guarantee Fund for external actions;  

The EFSI Guarantee Fund; and 

Financial instruments financed by the budget. 

6.1.  TYPES OF RISK 

Market  risk  is  the  risk  that  the  fair  value  or  future  cashflows  of  a  financial  instrument  will  fluctuate, 
because of variations in market prices. Market risk embodies not only the potential for loss, but also the 
potential  for  gain.  It  comprises  currency  risk,  interest  rate  risk  and  other  price  risk  (the  EU  has  no 
significant other price risk). 

(1)  Currency risk is the risk that the EU's operations or its investments' value will be affected by changes 

in exchange rates. This risk arises from the change in price of one currency against another.  

(2)  Interest  rate  risk  is  the  possibility  of  a  reduction  in  the  value  of  a  security,  especially  a  bond, 
resulting from an increase in interest rates. In general, higher interest rates will lead to lower prices 
of fixed rate bonds, and vice versa. 

Credit risk is the risk of loss due to a debtor's/borrower's non-payment of a loan or other line of credit 
(either  the  principal  or  interest  or  both)  or  other  failure  to  meet  a  contractual  obligation.  The  default 
events include a delay in repayments, restructuring of borrower repayments and bankruptcy. 

Liquidity risk  is  the  risk  that  arises  from  the  difficulty  in  selling  an  asset;  for  example,  the  risk  that a 
given  security  or  asset  cannot  be  traded  quickly  enough  in  the  market  to  prevent  a  loss  or  meet  an 
obligation. 

6.2.  RISK MANAGEMENT POLICIES  

The  implementation  of  the  EU  budget  relies  increasingly  on  the  use  of  financial  instruments.  The  basic 
concept  behind  this  new  approach,  in  contrast  to  the  traditional  method  of  budget  implementation  by 
giving  grants  and  subsidies,  is  that  for  each  euro  spent  from  the  budget  via  financial  instruments,  the 
final beneficiary receives more than EUR 1 as financial support due to the leverage effect. This intelligent 
use of the EU budget maximises the impact of the funds available. For more information on the amounts 
concerned, see note 2.4. 

Common to most financial instruments is the fact that the implementation is delegated to either the EIB 
group  (including  EIF)  based  on  an  agreement  between  the  EC  and  the  EIB  or  to  other  financial 
intermediaries. Agreements signed with these intermediaries include strict conditions and obligations on 
the intermediaries so as to ensure that EU monies are properly managed and properly reported on. Once 
a  financial  contribution  to  one  of  the  instruments  has  been  committed,  the  funds  are  transferred  to  a 
specifically  created  bank  account  of  the  financial  intermediary  (i.e.  a  fiduciary  account).  The  financial 
intermediary  may,  depending  on  the  instrument  in  question,  use  the  funds  on  this  fiduciary  account  to 
provide loans, issue debt instruments, etc. Proceeds from financial instruments have, as a general rule, 
to be reimbursed to the EU budget. 

The risk as regards these financial instruments is usually limited to a ceiling as indicated in the underlying 
agreements, which is the budgeted amount foreseen for the instrument. As the Commission often bears 
the  "first  loss  piece"  and  since  instruments  are  intended  to  finance  riskier  beneficiaries  (who  have 

86 

 
 
 
 
 
Annual accounts of the European Union 2015 

difficulties in obtaining funding from commercial lenders), it is therefore likely that at least some losses to 
the EU budget will occur. 

Borrowing and Lending activities 

The borrowing and lending transactions, as well as related treasury management, are carried out by the 
EU according to the respective Council Decisions, if applicable, and internal guidelines. Written procedure 
manuals  covering  specific  areas  such  as  borrowings,  loans  and  treasury  management  have  been 
developed  and  are  used  by  the  relevant  operational  units.  As  a  general  rule,  there  are  no  activities  to 
compensate  interest  rate  variations  or  foreign  currency  variations  ("hedging"  activities)  carried-out  as 
lending operations are generally financed by "back-to-back" borrowings, which thus do not generate open 
interest rate or currency positions. The application of the "back-to-back" character is checked regularly. 

Treasury 

The  rules  and  principles  for  the  management  of  the  Commission's  treasury  operations  are  laid  down  in 
the  Council  Regulation  1150/2000  (amended  by  Council  Regulations  2028/2004  and  105/2009)  and  in 
the Financial Regulation and its rules of application. 

As a result of the above regulations, the following main principles apply: 

-  Own resources are paid by the Member States into accounts opened for this purpose in the name of 
the  Commission  with  the  Treasury  or  the  body  appointed  by  each  Member  State.  The  Commission 
may draw on the above accounts solely to cover its cash requirements. 

-  Own Resources are paid by Member States in their own national currencies, while the Commission's 

payments are mostly denominated in EUR. 

- 

- 

Bank  accounts  opened  in the  name  of  the  Commission  may  not  be overdrawn.  This  restriction  does 
not  apply  to  the  Commission's  own  resource  accounts  in  case  of  a  default  on  loans  contracted  or 
guaranteed pursuant to EU Council regulations and decision and under certain conditions in case the 
cash resource requirements are in excess of the assets of the accounts. 

Funds held in bank accounts denominated in currencies other than EUR are either used for payments 
in the same currencies or periodically converted in EUR. 

In  addition  to  the  own  resources  accounts,  other  bank  accounts  are  opened  by  the  Commission,  with 
central banks and commercial banks, for the purpose of executing payments and receiving receipts other 
than the Member State contributions to the budget.  

Treasury  and  payment  operations  are  highly  automated  and  rely  on  modern  information  systems. 
Specific procedures are applied to guarantee system security and to ensure segregation of duties in line 
with the Financial Regulation, the Commission’s internal control standards, and audit principles. 

A written set of guidelines and procedures regulates the management of the Commission's treasury and 
payment operations with the objective of limiting operational and financial risk and ensuring an adequate 
level  of  control.  They  cover  the  different  areas  of  operation  (for  example:  payment  execution  and  cash 
management,  cashflow  forecasting,  business  continuity,  etc.),  and  compliance  with  the  guidelines  and 
procedures is  checked  regularly.  Additionally,  information is  exchanged  between  Directorate  General  for 
the  Budget  and  Directorate-General  for  Economic  and  Financial  Affairs  on  risk  management  and  best 
practices.  

Fines 

Provisionally cashed fines: deposits 

Amounts received before 2010 remain in bank accounts with banks specifically selected for the deposit of 
provisionally  cashed  fines.  The  selection  of  banks  is  conducted  in  compliance  with  tender  procedures 
defined by the Financial Regulation. Placement of funds with specific banks is determined by the internal 
risk management policy defining the credit rating requirements and the amount of funds which could be 
placed  in  proportion  to  the  counterparty  equity.  Financial  and  operational  risks  are  identified  and 
evaluated and compliance with internal policies and procedures is checked regularly. 

87 

 
 
 
 
 
Provisionally cashed fines: BUFI portfolio 

Annual accounts of the European Union 2015 

Fines  imposed  and  provisionally  cashed  from  2010  onwards  are  invested  in  a  specifically  created  fund, 
BUFI.  The  main  objectives  of  the  Fund  are  the  reduction  of  risks  associated  with  financial  markets  and 
the equal treatment of all fined entities by offering a guaranteed return calculated on the same basis. The 
asset  management  for  provisionally  cashed  fines  is  carried  out  by  the  Commission  in  accordance  with 
internal  asset  management  guidelines.  Procedural  manuals  covering  specific  areas  such  as  treasury 
management  have  been  developed  and  are  used  by  the  relevant  operational  units.  Financial  and 
operational  risks  are identified  and evaluated  and  compliance  with  internal  guidelines  and procedures  is 
checked regularly. 

The  objectives  of  the  asset  management  activities  are  to  invest  the  fines  provisionally  paid  to  the 
Commission in such a way as to: 

a)  ensure that the funds are easily available when needed, while 

b)  aiming at delivering, under normal circumstances, a return which on average is at least equal to the 

return of the BUFI Benchmark minus costs incurred. 

Investments  are  restricted  essentially  to  the  following  categories:  term  deposits  with  Euro-area  Central 
Banks, Euro-area sovereign debt agencies, fully state-owned or state-guaranteed banks or supranational 
institutions,  and  bonds,  bills  and  Certificates  of  Deposit  issued  by  either  sovereign  or  supranational 
institutions. 

Bank guarantees 

Significant amounts of guarantees issued by financial institutions are held by the Commission in relation 
to  the  fines  it  imposes  on  companies  breaching  EU  competition  rules  (see  note  2.6.1.2).  These 
guarantees  are  provided  by  fined  companies  as  an  alternative  to  making  provisional  payments.  The 
guarantees  are  managed  in  compliance  with  the  internal  risk  management  policy.  Financial  and 
operational  risks  are  identified  and  evaluated  and  compliance  with  internal  policies  and  procedures  is 
checked regularly. 

Guarantee Fund for external actions 

The rules and principles for the asset management of the Guarantee Fund are laid out in the Convention 
between the Commission and the EIB dated 25 November 1994 and the subsequent amendments dated 
17/23 September 1996,  8 May 2002,  25 February 2008  and  9 November 2010.  This  Guarantee  Fund 
operates only in euros. It exclusively invests in this currency in order to avoid any foreign currency risk. 
Management  of  the  assets  is  based  upon  the  traditional  rules  of  prudence  adhered  to  for  financial 
activities. It is required to pay particular attention to reducing the risks and to ensuring that the managed 
assets can be sold or transferred without significant delay, taking into account the commitments covered. 

EFSI Guarantee Fund 

The EFSI Guarantee Fund was established by Regulation (EU) 2015/2017 of the European Parliament and 
of the Council of 25 June 2015. The rules and principles for the asset management of the Fund are laid 
out  in  the  Commission  Decision  C(2016)165  of  21  January  2016.  There  were  no  funds  in  the  EFSI 
Guarantee Fund as of 31 December 2015, the inflows being scheduled from April 2016 onwards. 

88 

 
 
 
 
 
 
 
 
 
6.2.1.  Reconciliation of carrying amount and fair value of financial instruments 

Annual accounts of the European Union 2015 

Reconciliation of the carrying amounts and fair value of financial assets by class: 

Financial assets at fair value 
Available for sale financial assets 
Cash and cash equivalents 
Total 
Financial assets at amortised cost 
Loans 
Exchange receivables and             
non-exchange recoverables 
Total 
Total 

9 620 
21 671 
31 292 

57 251 
10 324 

67 575 
98 867 

31.12.2015 

Carrying 
amount 

Fair value 

EUR millions 

31.12.2014 

Carrying 
amount 

9 406 
17 545 
26 951 

58 843 
15 578 

Fair value 

9 406 
17 545 
26 951 

58 843 
15 578 

9 620 
21 671 
31 292 

57 252 
10 324 

67 576 
98 868 

74 421 
101 372 

74 421 
101 372 

Reconciliation of the carrying amounts and fair value of financial liabilities by class: 

Financial liabilities at fair value 
Financial liabilities at amortised 
cost 
Borrowings 
Finance lease liabilities 
Payables 
Other 
Total 

31.12.2015 

Carrying 
amount 
– 

Fair value 

– 

EUR millions 

31.12.2014 

Carrying 
amount 
– 

Fair value 

– 

56 860 
1 723 
32 191 
1 120 
91 894 

56 860 
1 723 
32 191 
1 120 
91 894 

58 470 
1 755 
43 180 
 454 
103 859 

58 470 
1 755 
43 180 
 454 
103 859 

89 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
6.3.  CURRENCY RISK 

Annual accounts of the European Union 2015 

Financial instruments exposure of the EU to currency risk at year end – net position 

USD 

GBP 

DKK

SEK

EUR

Other

Total

USD 

GBP

DKK

SEK

EUR

Other

Total 

31.12.2015

31.12.2014

EUR millions 

 81 

 5 

 10 

 36 

 132 

 (1) 

 (1) 

 131 

 76 

 0 

 542 

1 785 

2 403 

 (2) 

 (2) 

2 401 

 11 

– 

 53 

 368 

 433 

 0 

 0 

 8 

– 

 85 

9 416 

 354 

9 555 

1 287 

1 380 

17 342 

36 667 

 (0) 

 (0) 

(32 187) 

(32 187) 

 433 

1 380 

4 480 

 28 

 18 

 78 

 853 

 977 

 (1) 

 (1) 

 976 

9 620 

 377 

10 324 

21 671 

41 992 

(32 191) 

(32 191) 

9 801 

 68 

 2 

 2 

 44 

 116 

– 

– 

 116 

 77 

– 

4 102 

1 157 
5 336 

 (10) 
 (10) 

5 326 

 7 

– 

 50 

 471 

 528 

– 

– 

 9 

– 

9 203 

 303 

 88 

11 197 

 928 

1 024 

14 180 

34 883 

– 

– 

(43 168) 

(43 168) 

 528 

1 024 

(8 284) 

 42 

 28 

 140 

 764 

 974 

 (2) 

 (2) 

 972 

9 406 

 334 

15 578 

17 545 

42 862 

(43 180) 

(43 180) 

 (318) 

Financial assets 
Available for sale financial 
assets 
Loans* 
Receivables and 
recoverables 
Cash and cash equivalents 
Total 
Financial liabilities 
Payables 
Total 
Total 

* Excluding back-to-back loans. 

90 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

If  the  EUR  had  strengthened  against  other  currencies  by  10 %,  then  it  would  have  had  the  following 
impact: 

31.12.2015 
31.12.2014 

31.12.2015 
31.12.2014 

Economic result 

EUR millions 

GBP 
 (212) 
 (483) 

DKK 
 (38) 
 (47) 

SEK 
 (125) 
 (92) 

Net assets 

GBP 
 (7) 
 (7) 

EUR millions 

DKK 
 (1) 
 (1) 

SEK 
 (1) 
 (1) 

USD 
 (5) 
 (4) 

USD 
 (7) 
 (6) 

If the EUR had weakened against these currencies by 10 % then it would have had the following impact: 

31.12.2015 
31.12.2014 

31.12.2015 
31.12.2014 

Economic result 

GBP 
 259 
 591 

Net assets 

GBP 
 8 
 9 

USD 
 6 
 5 

USD 
 9 
 8 

EUR millions 

SEK 
 152 
 113 

EUR millions 

SEK 
 1 
 1 

DKK 
 47 
 58 

DKK 
 1 
 1 

Borrowing and lending activities 

Most  financial  assets  and  liabilities  are  in  EUR,  so  in  these  cases  the  EU  has  no  foreign  currency  risk. 
However, the EU does give loans in USD through the financial instrument Euratom, which are financed by 
borrowings with an equivalent amount in USD (back-to-back operation). At the balance sheet date the EU 
has no foreign currency risk with regard to Euratom.  

Treasury 

Own  resources  paid  by  Member  States  in  currencies  other  than  EUR  are  kept  on  the  own  resources 
accounts, in accordance with the Own Resources Regulation. They are converted into EUR when they are 
needed  to  cover  for  the  execution  of  payments.  The  procedures  applied  for  the  management  of  these 
funds  are  dictated  by  the  above  referenced  regulation.  In  a  limited  number  of  cases,  these  funds  are 
directly used for payments to be executed in the same currencies. 

A number of accounts in EU currencies other than EUR, and in USD and CHF, are held by the Commission 
with  commercial  banks,  for  the  purpose  of  executing  payments  denominated  in  these  same  currencies. 
These accounts are replenished depending on the amount of payments to be executed, as a consequence 
their balances do not represent exposure to currency risk. 

When miscellaneous receipts (other than own resources) are received in currencies other than EUR, they 
are either transferred to Commission's accounts held in the same currencies, if they are needed to cover 
the  execution  of  payments,  or  converted  into  EUR  and  transferred  to  accounts  held  in  EUR.  Imprest 
accounts held in currencies other than EUR are replenished depending on the estimated short term local 
payments  needs  in  the  same  currencies.  Balances  on  these  accounts  are  kept  within  their  respective 
ceilings. 

91 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

Fines 

Provisionally cashed fines (deposits and BUFI portfolio) and bank guarantees 

Since all fines are imposed and paid in EUR, there is no foreign currency risk. 

Guarantee Fund for external actions 

The financial assets of this fund are in EUR so there is no currency risk. The loans subrogated to the EU 
as  result  of  calls  on  the  Fund  following  payment  defaults  by  a  loan  beneficiary  are  carried  out  in  their 
original  currency  and  therefore  expose  the  EU  to  currency  risk.  There  are  no  activities  to  compensate 
foreign  currency  variations  ("hedging"  activities)  due  to  uncertainty  relating  to  the  loans  repayment 
timing. 

6.4.  INTEREST RATE RISK 

The following table illustrates the interest rate sensitivity of available for sale financial assets assuming a 
possible change in interest rates of +/- 100 basis points (1 %). 

31.12.2015: Available for sale financial assets 

31.12.2014: Available for sale financial assets 

Borrowing and Lending activities 

Borrowings and loans with variable interest rates 

Increase (+) / 
decrease (-) in 
basis points 
+100 
-100 
+100 
-100 

EUR millions 
Effect on 
economic result 
and net assets 
 (206) 
 223 
 (138) 
 149 

Due  to  the  nature  of  its  borrowing  and  lending  activities,  the  EU  has  significant  interest-bearing  assets 
and liabilities. MFA and Euratom borrowings issued at variable rates expose the EU to interest rate risk. 
However,  the  interest  rate  risks  that  arise  from  borrowings  are  offset  by  equivalent  loans  in  terms  and 
conditions (back-to-back). At the balance sheet date, the EU has loans (expressed in nominal amounts) 
with  variable  rates  of  EUR 380 million  (2014:  EUR 484 million),  with  a  re-pricing  taking  place  every 
6 months.  

Borrowings and loans with fixed interest rates 

The  EU  also  has  MFA  and  Euratom  loans  with  fixed  rates  totalling  EUR 2 927 million  in  2015  (2014: 
EUR 1 692 million) and which have a final maturity date of less than one year (EUR 13 million), between 
one  and  five  years  (EUR 760 million)  and  more  than  five  years  (EUR 2 154 million).  More  significantly, 
the EU has 7 loans under the financial instrument BOP with fixed interest rates totalling EUR 5.7 billion in 
2015  (2014:  EUR 8.4 billion)  and  which  have  a  final  maturity  of  less  than  one  year  (EUR 1.5 billion), 
between  one  and  five  years  (EUR 4.0 billion)  and  more  than  five  years  (EUR 0.2 billion).  Under  the 
financial instrument EFSM, the EU has 23 loans with fixed interest rates totalling EUR 46.8 billion in 2015 
(2014:  EUR 46.8 billion)  which  have  a  final  maturity  date  of  less  than  one  year  (EUR 4.75 million), 
between one and five years (EUR 4.5 billion) and more than five years (EUR 37.55 billion). 

Treasury 

The  Commission's  treasury  does  not  borrow  any  money;  as  a  consequence it  is  not  exposed to  interest 
rate  risk.  Interest  is  however  calculated  on  balances  held  on  the  different  banks  accounts.  The 
Commission  has  therefore  put  in  place  measures  to  ensure  that  interest  earned  on  its  bank  accounts 
regularly reflects market interest rates, as well as their possible fluctuation.  

Accounts opened with Member States Treasuries for own resources receipts are non-interest bearing and 
free  of  charges.  Accounts  held  with  National  Central  Banks  may  be  remunerated  at  the  official  rates 
applied  by  each  institution.  As  some  of  the  remunerations  applied  to  these  accounts  may  currently  be 
negative, cash management procedures are in place to minimise balances kept on these accounts. 

92 

 
 
 
 
 
 
Annual accounts of the European Union 2015 

Overnight  balances  held  on  commercial  bank  accounts  earn  interest  on  a  daily  basis.  This  is  based  on 
variable market rates to which a contractual margin (positive or negative) is applied. The rates applied by 
commercial  banks  are  in  general  contractually  floored  at  zero.  As  a  result  no  risk  exists  that  the 
Commission earns interest at rates lower than market rates. 

Fines 

Provisionally cashed fines (deposits, BUFI portfolio) and bank guarantees 

Deposits and bank guarantees are not exposed to interest rate risks. Interest earned by deposits reflect 
market  interest  rates  as  well  as  their  possible  fluctuation.  There  are  bonds  with  a  nominal  amount  of 
EUR 225 million having variable interest rates, which represent 8.76 % of the BUFI portfolio. The interest 
rate  sensitivity  parameter,  the  duration  of  the  portfolio,  follows  very  closely  the  duration  of  the  BUFI 
index.  Therefore  any  negative  effects on  the  asset  valuation  would be  matched  on  the  side of  the  BUFI 
liability.  There  remains  only  a  remote  exposure  to  the  interest  rate  risk  in  case  such  negative  effects 
during the fine's maturity period would result in an overall negative index performance. 

Guarantee Fund for external actions 

Debt  securities  within  the  Guarantee  Fund  issued  at  variable  interest  rates  are  subject  to  the  volatility 
effects  of  these  rates,  whereas  debt  securities  at  fixed  rates  have  a  risk  with  regard  to  their  fair  value. 
Fixed  rate  bonds  represent  approximately  88 %  of  the  investment  portfolio  at  the  balance  sheet  date 
(2014: 65 %). 

6.5.  CREDIT RISK 

The  amounts  that  represent  the  EU's  exposure  to  credit  risk  at  the  end  of  the  reporting  period  are  the 
carrying amounts of the financial instruments as disclosed in note 2. 

Analysis of the age of financial assets that are not impaired 

Total 

57 251 
10 324 
67 575 
58 843 
15 578 
74 421 

Neither 
past due 
nor 
impaired 

57 251 
8 672 
65 922 
58 843 
7 968 
66 811 

EUR millions

Past due but not impaired 

< 1 year 
 0 
 120 
 120 
– 
5 624 
5 624 

1-5 years 
– 
1 384 
1 384 
– 
1 847 
1 847 

> 5 years 
– 
 148 
 148 
– 
 138 
 138 

Loans 
Receivables and recoverables 
Total at 31.12.2015 
Loans 
Receivables and recoverables 
Total at 31.12.2014 

Receivables and recoverables between 1 and 5 years include recoverables related to competition fines of 
EUR 1 305 million that are to a large extent covered by bank guarantees and the Commission is thus not 
exposed to a credit risk. These guarantees are provided by fined companies as an alternative to making 
provisional payments. 

93 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit quality of financial assets that are neither past due nor impaired 

Annual accounts of the European Union 2015 

31.12.2015

AFS* 

Loans & 
Receiv. 

Cash

Total

AFS*

EUR millions

31.12.2014 

Loans & 
Receiv. 

Cash 

Total

5 945 
1 087 
1 247 
32 
8 310 

Counterparties with 
external credit rating 
Prime and high grade 
Upper medium grade 
Lower medium grade 
Non-investment grade 
Total 
Counterparties without 
external credit rating 
Group 1 
Group 2 
Total 
Total 
* Available for sale financial assets (excl. equity instruments). 

3 256
23 818
4 527
29 371
60 973 

4 855
 95
4 950 

- 
– 
– 

65 922 

8 310 

16 147
4 503
263
732
21 646 

25 349
29 409
6 037
30 136
90 930 

7 511
359
347
42
8 259 

2 951 
25 045 
6 001 
28 191 
62 188 

13 947 
2 932 
 301 
 317 
17 497 

24 409
28 335
6 649
28 550
87 944 

25
–
 25 

4 880
95
4 975 

–
–
– 

4 488 
 136 
4 624 

 48 
– 
 48 

4 537
136
4 673 

21 671 

95 905 

8 259 

66 812 

17 545 

92 616 

Not  included  in  the  above  table  are  available  for  sale  financial  assets  in  the  form  of  equity  instruments 
without  external  credit  rating.  The  four  risk  categories  mentioned  above  are  in  principle  based  on  the 
rating categories of external rating agencies and correspond to: 

• 

Prime and high grade: Moody P-1, Aaa – Aa3; S&P A-1+, A-1, AAA – AA -; Fitch F1+, F1, AAA – 
AA- and equivalent 

•  Upper medium grade: Moody P-2, A1 – A3; S&P A-2, A+ - A-; Fitch F2, A+ - A- and equivalent 
• 

Lower medium grade: Moody P-3, Baa1 – Baa3, S&P A-3, BBB+ - BBB-; Fitch F-3, BBBB+ - BBB- 
and equivalent 

•  Non-investment grade: Moody not prime, Ba1 – C; S&P B, C, BB+ - D; Fitch B, C, BB+ - D and 

equivalent 

Please  note  that  the  EU  uses  these  external  agencies  rating  categories  as  a  reference  point  notably  for 
financial instruments and commercial banks, but may, after making its own analysis of individual cases, 
keep  amounts  in  one  of  the  above  risk  categories  even  though  one  or  more  of  the  above  mentioned 
rating  agencies  may  have  downgraded  the  corresponding  counterparty.  As  regards  non-rated 
counterparties' group 1 relates to debtors without defaults in the past and group 2 relates to debtors with 
defaults in the past. 

The  amounts  displayed  above  under  Loans  and  receivables  categorised  in  non-investment  grade  relate 
primarily to financial support loans disbursed by the Commission to Member States in financial difficulties 
and  recoverables  against  certain  Members  States  based  on  own  resources  regulations  or  other  legal 
basis. The amount under cash relates to own resources bank accounts opened in the Treasury or in the 
central  banks  of  Member  States  to  hold  the  own  resources  contributions  as  foreseen  in  the  regulation. 
The Commission may draw on these accounts solely to cover cash requirements arising from execution of 
the budget. 

Borrowing and Lending activities 

Exposure to credit risk is managed firstly by obtaining country guarantees in the case of Euratom, then 
through the Guarantee Fund for external actions (MFA & Euratom), then by the possibility of drawing the 
necessary funds from the  Commission's own resources accounts with the Member States and ultimately 
through  the  Budget  of  the  EU.  The  Own  Resources  legislation  fixes  the  ceiling  for  own  resources 
payments at 1.23 % of Member States' GNI and during 2015 0.92 % was actually used to cover payment 
appropriations.  This  means  that  at  31 December 2015  there  existed  an  available  margin  of  0.31 %  to 
cover  these  guarantees.  The  Guarantee  Fund  for  external  actions  was  set  up  in  1994  to  cover  default 
risks related to borrowings which finance loans to countries outside the EU. In any case, the exposure to 
credit  risk  is  mitigated  by  the  possibility  to  draw  on  the  Commission's  own  resources  accounts  with 
Member States in excess of the assets on those accounts in case a debtor would be unable to reimburse 
the  amounts  due  in  full.  To  this  end,  the  EU  is  entitled  to  call  upon  all  the  Member  States  to  ensure 
compliance with the EU's legal obligation towards its lenders. 

As far as treasury operations are concerned, guidelines on the choice of counterparties must be applied. 
Accordingly,  the  operating  unit  will  be  able  to  enter  into  deals  only  with  eligible  banks  having  sufficient 
counterparty limits. 

94 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Treasury 

Annual accounts of the European Union 2015 

Most  of  the  Commission's  treasury  resources  are  kept,  in  accordance  with  Council  Regulation 
No 1150/2000  on  own  resources,  in  the  accounts  opened  by  Member  States  for  the  payment  of  their 
contributions  (own  resources).  All  such  accounts  are  held  with  Member  States'  treasuries  or  national 
central banks. These institutions carry the lowest credit (or counterparty) risk for the Commission as the 
exposure  is  with  its  Member  States.  For  the  part  of  the  Commission's  treasury  resources  kept  with 
commercial banks, in order to cover the execution of payments, replenishment of these accounts is made 
on  a  just-in-time  basis  and  is  automatically  managed  by  the  treasury  cash  management  system. 
Minimum  cash  levels,  which  take  into  account  the  average  amount  of  daily  payments  executed  from  it, 
are kept on each account. As a consequence the total amount kept overnight on these accounts remains 
constantly  at  low  levels  (overall  around  EUR 60 million  on  average,  spread  over  20  accounts)  and  so 
ensure  the  Commission's  risk  exposure  is  limited.  These  amounts  should  be  viewed  with  regard  to  the 
daily overall treasury balances which fluctuated in 2015 between EUR 300 million and EUR 34 billion, and 
with  an  overall  amount  of  payments  made  from  Commission  accounts  in  2015  that  exceeds 
EUR 142 billion. 

In  addition,  specific  guidelines  are  applied  for  the  selection  of  commercial  banks  in  order  to  further 
minimise counterparty risk to which the Commission is exposed: 

- 

- 

- 

All commercial banks are selected by call for tenders. The minimum short term credit rating required 
for  admission  to  the  tendering  procedures  is  Moody's  P-1  or  equivalent.  A  lower  level  may  be 
accepted in specific and duly justified circumstances. 

The  credit  ratings  of  the  commercial  banks  where  the  Commission  has  accounts  are  reviewed  on  a 
daily  basis.  Intensified  monitoring  measures  and  daily  reviews  of  commercial  banks'  ratings  were 
adopted in the context of the financial crisis, and kept in place. 

In  delegations  outside  the  EU,  imprest  accounts  are  held  with  local  banks  selected  by  a  simplified 
tendering  procedure.  Rating  requirements  depend on  the  local  situation  and  may  significantly  differ 
from one country to another. In order to limit risk exposure, balances on these accounts are kept at 
the lowest possible levels (taking into account operational needs), they are regularly replenished, and 
the applied ceilings are reviewed on a yearly basis. 

Fines 

Provisionally cashed fines: deposits 

Banks holding deposits for the fines provisionally cashed before 2010 are selected by tender procedure in 
compliance with the risk management policy which defines the credit rating requirements and the amount 
of funds which could be placed in proportion to the counterparty equity. 

For commercial banks that have been specifically selected for the deposit of provisionally cashed fines, a 
minimum  long-term  rating  A  (S&P  or  equivalent)  and  a  minimum  short  term  rating  A-1  (S&P  or 
equivalent)  is  required  as a  general  rule.  Specific  measures  are  applied  in  case  banks  in  this  group  are 
subject  to  downgrade.  In  addition,  the  amount  deposited  with  each  bank  is  limited  to  a  certain 
percentage  of  its  own  funds,  which  varies  depending  on  the  rating  level  of  each  institution.  The 
calculation  of  such  limits  also  takes  into  account  the  amount  of  outstanding  guarantees  issued  to  the 
Commission  by  the  same  institution.  The  compliance  of  outstanding  deposits  with  the  applicable  policy 
requirements is reviewed regularly. 

Provisionally cashed fines: BUFI portfolio 

For  investments  from  provisionally  cashed  fines,  the  Commission  takes  on  exposure  to  credit  risk.  The 
highest  concentration  of  exposure  is  towards  France  and  Italy  as  these  countries  represent  32 %  and 
16 % respectively of the total nominal volume of the portfolio. 

Bank guarantees 

Significant  amounts  of  guarantees  issued  by  financial  institutions  are  also  held  by  the  Commission  in 
relation to the fines it imposes on companies breaching EU competition rules (see note 2.6.1.2). These 
guarantees are provided by fined companies as an alternative to making provisional payments. The risk 
management policy applied for the acceptance of such guarantees has been reviewed in 2012 and a new 
combination of credit rating requirements and limited percentages per counterpart (proportional to each 

95 

 
 
 
 
Annual accounts of the European Union 2015 

counterpart's own funds) has been defined in the light of the current financial environment in the EU. It 
continues  to  ensure  a  high  credit  quality  for  the  Commission.  The  compliance  of  the  outstanding 
guarantees with the applicable policy requirements is reviewed regularly. 

Guarantee Fund for external actions 

In  accordance  with  the  agreement  between  the  EU  and  the  EIB  on  the  management  of  this  Guarantee 
Fund, all investments (securities, deposits etc.) have the required investment grade rating. 

6.6.  Liquidity risk 

Maturity analysis of financial liabilities by remaining contractual maturity 

Borrowings 
Finance lease liabilities 
Payables 
Other 
Total at 31.12.2015 
Borrowings 
Finance lease liabilities 
Payables 
Other 
Total at 31.12.2014 

< 1 year 
7 218 
 75 
32 191 
 645 
40 130 
8 727 
 81 
43 180 
 20 
52 008 

1-5 years 
9 660 
 392 
– 
 120 
10 173 
15 386 
 366 
– 
 97 
15 849 

> 5 years 
39 982 
1 256 
– 
 353 
41 591 
34 357 
1 309 
– 
 336 
36 002 

EUR millions 
Total 
56 860 
1 723 
32 191 
1 120 
91 894 
58 470 
1 755 
43 180 
 454 
103 859 

Borrowing and Lending activities 

The  liquidity  risk  that  arises  from  borrowings  is  generally  offset  by  equivalent  loans  in  terms  and 
conditions  (back-to-back  operations).  For  MFA  and  Euratom,  the  Guarantee  Fund  for  external  actions 
serves as a liquidity reserve (or safety net) in case of payment default and payment delays of borrowers. 
For  BOP,  the  Council  Regulation  431/2009  provides  for  a  procedure  allowing  sufficient  time  to  mobilise 
funds through the Commission's own resources accounts with the Member States. For EFSM, the Council 
Regulation 407/2010 provides for a similar procedure. 

Treasury 

EU  budget  principles  ensure  that  overall  cash  resources  for  a  given  year  are  always  sufficient  for  the 
execution  of  all  payments.  In  fact,  the  total  Member  States  contributions  equal  the  amount of  payment 
appropriations  for  the  budgetary  year.  Member  States’  contributions,  however,  are  received  in  twelve 
monthly instalments throughout the year, while payments are subject to certain seasonality. Moreover, in 
accordance  with  the  Council  Regulation  1150/2000  (Own  Resources  Regulation),  Member  States 
contributions relating to (amending) budgets approved after the 16th of a given month (N) only become 
available in month N+2, while the related payment appropriations are immediately available. In order to 
ensure  that  available  treasury  resources  are  always  sufficient  to  cover  the  payments  to  be  executed  in 
any  given  month,  procedures  regarding  regular  cash  forecasting  are  in  place,  and  own  resources  or 
additional  funding  can  be  called  up  in  advance  from  Member  States  if  needed,  up  to  certain  limits  and 
under  certain  conditions.  Seasonality  of  expenditure  and  overall  budgetary  restrictions  in  recent  years 
have resulted in the need for increased monitoring of the rhythm of payments over the year. In addition 
to the above, in the context of the Commission's daily treasury operations, automated cash management 
tools  ensure  that  sufficient  liquidity  is  available  on  each  of  the  Commission's  bank  accounts,  on  a  daily 
basis. 

Guarantee Fund for external actions 

The fund is managed according to the principle that the assets shall have a sufficient degree of liquidity 
and  mobilisation  in  relation  to  the  relevant  commitments.  The  fund  must  maintain  a  minimum  of 
EUR 100 million  in  a  portfolio  with  a  maturity  of  less  than  twelve  months  which  is  to  be  invested  in 
monetary  instruments.  As  at  31 December 2015  these  investments,  including  cash,  amounted  to 
EUR 173 million. Furthermore, a minimum of 20 % of the fund's nominal value shall comprise monetary 
instruments,  fixed-rate  bonds  with  a  remaining  maturity  of  no  more  than  one  year,  and  floating-rate 
bonds. As at 31 December 2015 this ratio stood at 28 %. 

96 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

7.  RELATED PARTY DISCLOSURES 

7.1.  RELATED PARTIES 

The  related  parties  of  the  EU  are  the  EU  consolidated  entities,  associates  and  the  key  management 
personnel  of  these  entities.  Transactions  between  these  entities  take  place  as  part  of  the  normal 
operations of the EU and as this is the case, no specific disclosure requirements are necessary for these 
transactions in accordance with the EU accounting rules. 

7.2.  KEY MANAGEMENT ENTITLEMENTS 

For the purposes of presenting information on related party transactions concerning the key management 
of the EU, such persons are shown here under five categories: 

Category  1:  the  Presidents  of  the  European  Council,  the  Commission  and  the  Court  of  Justice  of  the 
European Union 

Category 2: the Vice-president of the Commission and High Representative of the EU for Foreign Affairs 
and Security Policy and the other Vice-presidents of the Commission 

Category  3:  the  Secretary-General  of  the  Council,  the  Members  of  the  Commission,  the  Judges  and 
Advocates  General  of  the  Court  of  Justice  of  the  European  Union,  the  President  and  Members  of  the 
General  Court,  the  President  and  Members  of  the  European  Civil  Service  Tribunal,  the  Ombudsman  and 
the European Data Protection Supervisor 

Category 4: the President and Members of the European Court of Auditors 

Category 5: the highest ranking civil servants of the Institutions and Agencies 

A  summary  of  their  entitlements  is  given  below  –  further  information  can  be  found  in  the  Staff 
Regulations  published  on  the  Europa  website  which  is  the  official  document  describing  the  rights  and 
obligations of all officials of the EU. Key management personnel have not received any preferential loans 
from the EU. 

97 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential/Expatriation 
allowance  

Family allowances: 
Household (% salary) 

Dependent child 
Pre-school 
Education, or 
Education outside place of work 
Presiding judges allowance 

Transfers to Member State: 
Education allowance* 
% of salary* 
% of salary with no cc 
Representation expenses 

Taking up duty: 
Installation expenses 

Family travel expenses 
Moving expenses 
Leaving office: 
Resettlement expenses 

Annual accounts of the European Union 2015 

KEY MANAGEMENT FINANCIAL ENTITLEMENTS 

Entitlement (per employee) 
Basic salary (per month) 

Category 1 
26 167.89 

Category 2 
23 702.80 -  
24 650.91 

Category 3 
18 962.24 -  
21 332.52 

Category 4 
20 479.22 -  
21 806.58 

Category 5 
12 057.21 -  
18 962.24 

EUR

15 % 

15 % 

15 % 

15 % 

2 % + 
176.01 
384.60 
93.95 
260.95 
521.90 
N/A 

2 % +  
176.01 
384.60 
93.95 
260.95 
521.90 
N/A 

2 % + 
176.01 
384.60 
93.95 
260.95 
521.90 
607.71 

Representation allowance 

1 418.07 

911.38 

607.71 

Annual travel costs 

N/A 

N/A 

N/A 

0 – 4 % - 
16 % 

2 % + 
176.01 
384.60 
93.95 
260.95 
521.90 
N/A 

N/A 

N/A 

2 % + 
176.01 
384.60 
93.95 
260.95 
521.90 
N/A 

N/A 

N/A 

Yes 
5 % 
max 25 % 
Reimbursed 

Yes 
5 % 
max 25 % 
Reimbursed 

Yes 
5 % 
max 25 % 
Reimbursed 

Yes 
5 % 
max 25 % 
N/A 

Yes 
5 % 
max 25 % 
N/A 

52 335.78 

Reimbursed 
Reimbursed 

26 167.89 

47 405.60 -  
49 301.82 
Reimbursed 
Reimbursed 

37 924.50 -  
42 665.04 
Reimbursed 
Reimbursed 

40 958.44 -  
43 613.16 
Reimbursed 
Reimbursed 

23 702.80 -  
24 650.91 
Reimbursed 
Reimbursed 
40 % - 65 % 
Covered 
Max 70 % 

18 962.24 -  
21 332.52 
Reimbursed 
Reimbursed 
40 % - 65 % 
Covered 
Max 70 % 

20 479.22 -  
21 806.58 
Reimbursed 
Reimbursed 
40 % - 65 % 
Covered 
Max 70 % 

Reimbursed 

Reimbursed 
Reimbursed 

Reimbursed 

Reimbursed 
Reimbursed 
N/A 
Covered 
Max 70 % 

Family travel expenses 
Moving expenses 
Transition (% salary)** 
Sickness insurance 
Pension (% salary, before tax) 

Reimbursed 
Reimbursed 
40 % - 65 % 
Covered 
Max 70 % 

Deductions: 
Tax on salary 
Sickness insurance (% salary) 
Special levy on salary 
Pension deduction 
Number of persons at year-end 

8 % - 45 % 
1.7 % 
7 % 
N/A 
3 

8 % - 45 % 
1.7 % 
7 % 
N/A 
8 

8 % - 45 % 
1.7 % 
7 % 
N/A 
93 

8 % - 45 % 
1.7 % 
7 % 
N/A 
28 

8 % - 45 % 
1.7 % 
6 – 7 % 
10.1 % 
112 

* With correction coefficient ("CC") applied. 

** Paid for the first 3 years following departure. 

98 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

8. 

EVENTS AFTER THE BALANCE SHEET DATE 

At  the  date  of  signing  of  these  accounts,  except  for  the  matter  outlined  below,  no  material  issues  had 
come  to  the  attention  of  the  Accounting  Officer  of  the  Commission  or  were  reported  to  him  that  would 
require  separate disclosure  under  this  section.  The  accounts  and  related  notes  were  prepared  using  the 
most recently available information and this is reflected in the information presented. 

On 23 June 2016, the citizens of the United Kingdom voted to leave the European Union. To give effect to 
this  decision  of  the  British  people,  Article  50  of  the  Treaty  on  European  Union  must  be  invoked.  This 
article sets out the procedure to be followed if a Member State decides to leave the European Union, and 
only when this article is activated can the negotiations on the departure of the United Kingdom begin. In 
accordance  with  the  guidelines  provided  by  the  European  Council,  the  Union  shall  then  negotiate  and 
conclude an agreement with the United Kingdom, setting out the arrangements for its withdrawal, taking 
account  of  the  framework  for  its  future  relationship  with  the  Union.  At  the  time  of  the  signing  of  these 
accounts, formal notification of the triggering of Article 50 has not been presented. 

99 

 
Annual accounts of the European Union 2015 

9. 

SCOPE OF CONSOLIDATION 

A. CONTROLLED ENTITIES (52) 
1. Institutions and consultative bodies (11) 
European Parliament 
European Council 
European Commission 
European Court of Auditors 
Court of Justice of the European Union 
European External Action Service 

European Data Protection Supervisor 
European Economic and Social Committee 
European Ombudsman 
Committee of the Regions 
Council of the European Union 

2. EU Agencies (39) 
2.1. Executive Agencies (6) 
Education, Audiovisual & Culture Executive Agency  Executive Agency for Small and Medium-sized 

Consumers, Health, Agriculture and Food 
Executive Agency 
Research Executive Agency 

2.2. Decentralised Agencies (33) 
European Maritime Safety Agency 
European Medicines Agency 
European GNSS Supervisory Authority 
European Chemicals Agency 
Fusion for Energy (European Joint Undertaking for 
ITER and the Development of Fusion Energy) 
Eurojust 
European Institute for Gender Equality 
European Agency for Safety and Health at Work 
European Centre for Disease Prevention and 
Control 
European Environment Agency 
European Centre for the Development of 
Vocational training 
European Agency for Cooperation of Energy 
Regulators 
European Banking Authority 
European Asylum Support Office 
Office for the Body of European Regulators for 
Electronic Communication 
European Agency for the Management of 
Operational Co-operation at External Borders of 
the Member States of the EU 
EU-LISA (European Agency for the operational 
management of large-scale IT systems in the area 
of freedom, security and justice) 

3. Other controlled entities (2) 
European Coal and Steel Community (in 
liquidation) 

B. JOINT VENTURES (7) 
SESAR Joint Undertaking 
Fuel Cells and Hydrogen 2 Joint Undertaking 
Clean Sky 2 Joint Undertaking 
Galileo Joint Undertaking in liquidation 
C. ASSOCIATES (1) 
European Investment Fund  
* 

Included for the first time in 2015. 

Enterprises 
Innovation & Networks Executive Agency 

European Research Council Executive Agency 

European Food Safety Authority 
European Railway Agency 
Community Plant Variety Office 
European Fisheries Control Agency 
European Monitoring Centre for Drugs and Drug 
Addiction 
European Police College (CEPOL) 
European Police Office (EUROPOL) 
European Aviation Safety Agency 
European Network and Information Security 
Agency 
European Union Agency for Fundamental Rights 
European Insurance and Occupational Pensions 
Authority 
Translation Centre for the Bodies of the European 
Union 
European Securities and Markets Authority 
European Training Foundation 
European Foundation for the Improvement of 
Living and Working Conditions 
EU Office for Harmonisation in the Internal Market 
(Trade Marks and Designs) 

European Institute of Innovation and Technology 

Innovative Medicines Initiative 2 Joint Undertaking 
ECSEL Joint undertaking 
Bio-based Industries Joint Undertaking* 

100 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

EUROPEAN UNION 
FINANCIAL YEAR 2015 

AGGREGATED REPORTS ON THE 
IMPLEMENTATION OF THE BUDGET AND 
EXPLANATORY NOTES 

It should be noted that due to the rounding of figures into millions of euros, some financial data in the 
tables below may appear not to add-up. 

101 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

102 

 
 
Annual accounts of the European Union 2015 

CONTENTS 

EU BUDGET RESULT ....................................................................................................104 

RECONCILIATION OF ECONOMIC RESULT WITH BUDGET RESULT .....................................105 

STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS ..................................106 

NOTES TO THE AGGREGATED REPORTS ON THE IMPLEMENTATION OF THE BUDGET ..........109 

1. 

THE EU BUDGET CYCLE ...................................................................................109 

1.1.  MULTIANNUAL FINANCIAL FRAMEWORK 2014-2020 ............................................109 
1.2.  POLICY AREAS ................................................................................................110 
1.3.  ANNUAL BUDGET ............................................................................................111 

2. 

NOTES TO THE EU BUDGET RESULT ..................................................................112 

2.1.  CALCULATION OF THE BUDGET RESULT .............................................................112 
2.2.  IMPLEMENTATION OF THE 2015 EU BUDGET .......................................................113 

3. 

4. 

NOTES TO THE RECONCILIATION OF ECONOMIC RESULT WITH BUDGET RESULT ...114 

IMPLEMENTATION OF EU BUDGET REVENUE ......................................................115 

4.1.  SUMMARY OF THE IMPLEMENTATION OF BUDGET REVENUE ..................................115 
4.2.  REVENUE IMPLEMENTATION .............................................................................117 

5. 

IMPLEMENTATION OF EU BUDGET EXPENDITURE ................................................120 

5.1.  MFF: BREAKDOWN & CHANGES IN COMMITMENT & PAYMENT APPROPRIATIONS ......120 
5.2.  MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS ................................121 
5.3.  MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS .......................................122 
5.4.  MFF: MOVEMENTS IN COMMITMENTS OUTSTANDING (RAL) ..................................123 
5.5.  MFF: BREAKDOWN OF COMMITMENTS OUTSTANDING BY YEAR OF ORIGIN .............124 
5.6.  POLICY AREA: BREAKDOWN AND CHANGES IN COMMITMENT AND PAYMENT 

APPROPRIATIONS ...........................................................................................125 
5.7.  POLICY AREA: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS ...................128 
5.8.  POLICY AREA: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ..........................131 
5.9.  POLICY AREA: MOVEMENTS IN COMMITMENTS OUTSTANDING .............................132 
5.10. POLICY AREA: BREAKDOWN OF COMMITMENTS OUTSTANDING BY YEAR OF 

ORIGIN .........................................................................................................133 
5.11. IMPLEMENTATION OF 2015 EXPENDITURE ..........................................................134 

6. 

IMPLEMENTATION OF THE INSTITUTIONS AND AGENCIES BUDGET ......................135 

6.1.  INSTITUTIONS: SUMMARY OF THE IMPLEMENTATION OF BUDGET REVENUE ...........135 
6.2.  INSTITUTIONS: IMPLEMENTATION OF COMMITMENT AND PAYMENT 

APPROPRIATIONS ...........................................................................................136 

6.3.  AGENCIES INCOME: BUDGET FORECASTS, ENTITLEMENTS AND AMOUNTS 

RECEIVED ......................................................................................................138 
6.4.  COMMITMENT & PAYMENT APPROPRIATIONS BY AGENCY .....................................140 
6.5.  BUDGET RESULT INCLUDING AGENCIES ............................................................141 

103 

 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

EU BUDGET RESULT 

Revenue for the financial year 
Payments against current year appropriations 
Payment appropriations carried over to  year N+1 
Cancellation of unused appropriations carried over 
from year N-1 
Evolution of assigned revenue 
Exchange differences for the year 
Budget result* 

Note 
4.1 
5.3 

2.2 

2015 
146 624 
(143 485) 
(1 299) 
 29 

 (704) 
 182 
1 347 

* Of which EFTA result is EUR (2) million in 2015 and EUR (3) million in 2014. 

EUR millions 

2014 
143 940 
(141 193) 
(1 787) 
 25 

 336 
 110 
1 432 

104 

 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

RECONCILIATION OF ECONOMIC RESULT WITH BUDGET 
RESULT 

ECONOMIC RESULT OF THE YEAR 

Revenue 
Entitlements established in current year but 
not yet collected 
Entitlements established in previous years and 
collected in current year 
Accrued revenue (net) 
Expenses 
Accrued expenses (net) 
Expenses prior year paid in current year 
Net-effect pre-financing 
Payment appropriations carried over to next 
year 
Payments made from carry-overs & 
cancellation of unused payment 
appropriations 
Movement in provisions 
Other 

Economic result Agencies and ECSC 

BUDGET RESULT OF THE YEAR 

2015 
(13 033) 

 (318) 

7 943 

 (359) 

9 920 
(1 208) 
(4 831) 
(2 195) 

1 979 

4 950 
(1 671) 

 169 

1 347 

For further explanations on the reconciliation of economic with budget result see note 3. 

See also table 6.5 Budget result including agencies. 

EUR millions 
2014 
(11 280) 

(6 573) 

4 809 

(4 877) 

9 223 
 (821) 
 457 
(1 979) 

1 858 

12 164 
(1 719) 

 170 

1 432 

105 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

STATEMENT OF COMPARISON OF BUDGET AND ACTUAL 
AMOUNTS 

BUDGET REVENUE 

1 

Own resources 

of which Customs duties 
of which VAT 
of which GNI 

3 

4 

5 

6 

7 

8 

Surpluses, balances and 
adjustments on own resources 
Revenue accruing from persons 
working with the institutions and 
with other Union bodies 
Revenue accruing from the 
administrative operation of the 
institutions 
Contributions and refunds in 
connection with Union 
agreements and programmes 
Interests on late payments and 
fines 
Borrowing and lending 
operations 
Miscellaneous revenue 

9 
Total 

Initial 
adopted 
budget  

139 639 
16 701 
18 264 
104 548 
– 

1 301 

 54 

 60 

 123 

 7 

 30 
141 214 

Amending 
budgets 

(9 971) 
1 934 
 (241) 
(11 664) 
8 568 

Final 
adopted 
budget 
129 667 
18 635 
18 023 
92 884 
8 568 

EUR millions
Revenue 

130 738 
18 607 
18 269 
94 009 
8 031 

– 

1 301 

1 329 

 40 

 94 

 563 

– 

 60 

4 198 

1 400 

1 523 

1 703 

 30 

– 
 66 

 37 

 42 

 30 
141 280 

 19 
146 624 

For details of the 2015 revenue implementation see note 4. 

106 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

BUDGET EXPENDITURE: COMMITMENTS BY MULTIANNUAL FINANCIAL 
FRAMEWORK (MFF) HEADING 

MFF Heading 

1  Smart and inclusive 

growth 

1a: Competitiveness for
growth and jobs 
1b: Economic, social 
and territorial cohesion 

2  Sustainable growth: 
natural resources 

of which: Market 
related expenditure and 
direct payments 

3  Security and citizenship 
4  Global Europe 
5  Administration 

of which: 
Administrative 
expenditure of the 
institutions 

Initial 
adopted 
budget  
66 782 

Amending 
budgets & 
transfers 
11 173

Final 
adopted 
budget 
77 955

Additional 
appropri-
ations* 
11 429

Total 
appropriations 
available 

89 384 

17 552 

0

17 552

49 230 

11 173

60 403

58 809 

5 069

63 877

43 456 

(1)

43 455

2 147 
8 408 
8 660 
3 667 

375
386
(0)
(0)

2 522
8 795
8 660
3 667

2 538

8 890

5 262

2 841

347
979
765
420

20 090 

69 293 

69 140 

46 296 

2 869 
9 774 
9 425 
4 087 

EUR millions 

Commitments 
made 

88 151

18 905

69 246

67 375

44 948

2 826
9 397
9 154
3 954

6  Compensations 
8  Negative reserve 
9  Special instruments 

Total 

– 
– 
 515 
145 322 

–
–
(51)
16 952

–
–
465
162 273

–
–
231
19 013

– 
– 
 696 
181 286 

–
–
288
177 190

* Additional appropriations include appropriations carried over from last year, assigned revenue and appropriations becoming available 
as a result of decommitments. 

107 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

BUDGET EXPENDITURE: PAYMENTS BY MULTIANNUAL FINANCIAL 
FRAMEWORK (MFF) HEADING 

Amending 
budgets & 
transfers 
(347)

Final 
adopted 
budget 
66 576

Additional 
appropri- 
ations* 
3 740

Total 
appropriations 
available 

70 316 

15 609

3 375

18 984 

MFF Heading 

1  Smart and inclusive 

growth 

1a: Competitiveness for
growth and jobs 
1b: Economic, social 
and territorial cohesion 

2  Sustainable growth: 
natural resources 

of which: Market 
related expenditure and 
direct payments 

3  Security and citizenship 
4  Global Europe 
5  Administration 

of which: 
Administrative 
expenditure of the 
institutions 

6  Compensations 
8  Negative reserve 
9  Special instruments 

Total 

Initial 
adopted 
budget  
66 923 

15 798 

51 125 

55 999 

43 448 

1 860 
7 422 
8 659 
3 667 

– 
– 
 352 
141 214 

(189)

(158)

214

(1)

104
229
0
(0)

–
–
(134)
66

50 967

56 213

43 447

1 963
7 652
8 659
3 667

–
–
218
141 280

365

3 276

2 857

92
576
1 526
877

–
–
105
9 314

EUR millions 

Payments made

68 009

16 802

51 207

58 066

44 940

2 019
7 884
8 978
3 791

51 332 

59 489 

46 304 

2 055 
8 228 
10 185 
4 543 

– 
– 
 322 
150 595 

–
–
288
145 243

* Additional appropriations include appropriations carried over from last year, assigned revenue and appropriations becoming available 
as a result of decommitments. 

For details of the 2015 expenditure implementation see note 5 and for the explanation note 5.11. 

108 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

NOTES TO THE AGGREGATED REPORTS ON THE 
IMPLEMENTATION OF THE BUDGET  

1. 

THE EU BUDGET CYCLE 

The  budgetary  accounts  are  kept  in  accordance  with  the  Financial  Regulation  (FR)  and  its  rules  of 
application.  The  general  budget,  the  main  instrument  of  the  Union's  financial  policy,  is  the  instrument 
which  provides  for  and  authorises  the  Union's  revenue  and  expenditure  every  year.  In  accordance  with 
the  FR,  there  are  two  main  elements:  the  multi  annual  financial  framework  (MFF),  which  sets  the  main 
ceilings for a period of 7 years, and the annual budget procedure. 

1.1.  MULTIANNUAL FINANCIAL FRAMEWORK 2014-2020 

Heading 
1. Smart and inclusive 
growth 

1.a Competitiveness for 
growth and jobs 
1.b Economic, social and 
territorial cohesion 
2. Sustainable growth: 
natural resources 

of which: market related 
expenditure and direct 
payments 

3. Security and citizenship 
4. Global Europe 
5. Administration 

of which: Administrative 
expenditure of the 
institutions 
6. Compensations 
8. Negative reserve 
9. Special Instruments 
Commitment 
appropriations: 

Total payment 
appropriations: 

2014 
52 756 

2015 
77 986 

2016
69 304 

2017
72 386 

2018
75 271 

2019 
78 752 

EUR millions 
Total
508 921 

2020 
82 466 

16 560 

17 666 

18 467 

19 925 

21 239 

23 082 

25 191 

142 130 

36 196 

60 320 

50 837 

52 461 

54 032 

55 670 

57 275 

366 791 

49 857 

64 692 

64 262 

60 191 

60 267 

60 344 

60 421 

420 034 

43 779 

44 190 

43 950 

44 145 

44 162 

44 240 

44 263 

308 729 

1 737 

8 335 

8 721 

7 056 

2 456 

8 749 

9 076 

7 351 

2 546 

9 143 

9 483 

7 679 

2 578 

9 432 

9 918 

8 007 

2 656 

9 825 

10 346 

8 360 

2 801 

10 268 

10 786 

8 700 

2 951 

10 510 

11 254 

9 071 

17 725 

66 262 

69 584 

56 224 

 29 

– 

– 

– 

– 

– 

– 

 29 

121 435 

162 959 

154 738 

154 505 

158 365 

162 951 

167 602 

1 082 555 

135 762 

142 007 

144 685 

142 771 

149 074 

153 362 

156 295 

1 023 956 

The above table shows the MFF ceilings at current prices. 2015 was the second financial year covered by 
the  new  MFF  2014-2020.  The  overall  ceiling  for  commitments  appropriations  for  2015  was 
EUR 162 959 million,  equivalent  to  1.17 %  of  GNI,  while  the  corresponding  ceiling  for  payment 
appropriations was EUR 142 007 million, or 1.02 % of GNI. 

The  reprogramming  of  unused  2014  commitment  appropriations  to  2015  and  2016  (according  to  MFF 
Art. 19) was implemented by Council Regulation (EU, Euratom) No 2015/623 of 21 April 2015 (OJ L 103, 
22 April 2015, p.1) with a revision of the MFF ceilings and a related amending budget for 2015. The main 
impacts in 2015 were under Heading 1(b) (EUR 11.2 billion) and Heading 2 (EUR 5 billion), while for 2016 
the main change is to Heading 2 (EUR 4.4 billion). 

New  flexibility  provisions  have  been  agreed  for  the  2014-2020  MFF.  One  of  the  new  provisions  is  a 
possibility to transfer unspent margin under the payment ceilings to the following years – via the Global 
Margin  for  Payments  in  the  framework  of  the  technical  adjustment  of  the  MFF  for  the  following  year. 
Therefore,  the  unspent  amount  from  2014  (EUR 104 million  in  current  prices  2014)  was  transferred  to 
2015  (EUR 106 million  in  current  prices  of  2015)  and  the  ceilings  of  2014  and  2015  were  adjusted 
accordingly – see Technical adjustment of the MFF for 2016 (COM(2015) 320 final, 22 May 2015). 

109 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

An explanation of the various headings of the MFF is given below: 

Heading 1 – Smart and inclusive growth 

This heading is divided into two separate, but interlinked components 

(3)  Competitiveness  for  growth  and  jobs,  encompassing  expenditure  on  research  and  innovation, 
education  and  training,  European  Connecting  Facility,  social  policy,  the  internal  market  and 
accompanying policies. 

(4)  Economic,  social  and  territorial  cohesion,  designed  to  enhance  convergence  of  the  least  developed 
Member States and regions, to complement the EU strategy for sustainable development outside the 
less prosperous regions and to support inter regional cooperation. 

Heading 2 – Sustainable growth: natural resources 

Heading 2 includes the common agricultural and fisheries policies, rural development and environmental 
measures, in particular Natura 2000. 

Heading 3 – Security and citizenship 

Heading 3 (Security and citizenship) reflects the growing importance attached to certain fields where the 
EU  has  been  assigned  particular  tasks  –  justice  and  home  affairs,  border  protection,  immigration  and 
asylum  policy,  public  health  and  consumer  protection,  culture,  youth,  information  and  dialogue  with 
citizens. 

Heading 4 – Global Europe 

Heading 4 covers all external action, including development cooperation, humanitarian aid, pre-accession 
and neighbourhood instruments. The EDF remains outside of the EU budget and is not part of the MFF. 

Heading 5 - Administration 

This  heading  covers  administrative  expenditure  for  all  institutions,  pensions  and  the  European  Schools. 
For the Institutions other than the Commission, these costs make up the total of their expenditure. 

Heading 6 - Compensations 

In accordance with the political agreement that new Member States should not become net-contributors 
to the budget at the very beginning of their membership, compensation was foreseen under this heading. 
This amount was available as transfers to them to balance their budgetary receipts and contributions. 

1.2.  POLICY AREAS 

As  part  of  its  use  of  Activity  Based  Management  (ABM)  the  Commission  implements  Activity  Based 
Budgeting  (ABB)  in  its  planning  and  management  processes.  ABB  involves  a  budget  structure  where 
budget  titles  correspond  to  policy  areas  and  budget  chapters  to  activities.  ABB  aims  to  provide  a  clear 
framework  for  translating  the  Commission's  policy  objectives  into  action,  either  through  legislative, 
financial or any other public policy means. By structuring the Commission's work in terms of activities, a 
clear  picture  is  obtained  of  the  Commission's  undertakings  and  simultaneously  a  common  framework  is 
established  for  priority  setting.  Resources  are  allocated  to  priorities  during  the  budget  procedure,  using 
the activities as the building blocks for budgeting purposes. By establishing such a link between activities 
and  the  resources  allocated  to  them,  ABB  aims  to  increase  efficiency  and  effectiveness  in  the  use  of 
resources in the Commission. 

A  policy  area  may  be  defined  as  a  homogeneous  grouping  of  activities  constituting  parts  of  the 
Commission's work, which are relevant for the decision-making process. Each policy area corresponds, in 
general,  to  a  Directorate  General,  and  encompassing  an  average  of  about  6  or  7  individual  activities. 
Policy areas are mainly operational, since their core activities aim at benefiting a third-party beneficiary 
within  their  respective  domains  of  activity.  The  operational  budget  is  completed  with  the  necessary 
administrative expenditure for each policy area. 

110 

 
Annual accounts of the European Union 2015 

1.3.  ANNUAL BUDGET 

Every  year,  the  Commission  estimates  all  the  Institutions'  revenue  and  expenditure  for  the  year  and 
draws up a draft budget which it sends to the budgetary authority. On the basis of this draft budget, the 
Council  sets  out  its  position,  which  is  then  the  subject  of  negotiations  between  the  two  arms  of  the 
budgetary  authority.  The  President  of  the  European  Parliament  declares  that  the  joint  draft  has  been 
finally adopted, thus making the budget enforceable. During the year in question, amending budgets are 
adopted. The task of executing the budget is mainly the responsibility of the Commission. 

The  budget  structure  for  the  Commission  consists  of  administrative  and  operational  appropriations.  The 
other  Institutions  have  only  administrative  appropriations.  Furthermore,  the  budget  distinguishes 
between  two  types  of  appropriations:  non-differentiated  and  differentiated.  Non-differentiated 
appropriations  are  used  to  finance  operations  of  an  annual  nature  (which  comply  with  the  principle  of 
annuality). Differentiated appropriations are used in order to reconcile the principle of annuality with the 
need  to  manage  multi-annual  operations.  Differentiated  appropriations  are  split  into  commitment  and 
payment appropriations: 

• 

commitment  appropriations:  cover  the  total  cost  of  the  legal  obligations  entered  into  for  the 
current  financial  year  for  operations  extending  over  a  number  of  years.  However,  budgetary 
commitments  for  actions  extending  over  more  than  one  financial  year  may  be  broken  down  over 
several years into annual instalments where the basic act so provides. 

•  payment appropriations: cover expenditure arising from commitments entered into in the current 

financial year and/or earlier financial years. 

Origin of Appropriations 

The main source of appropriations is the Union's adopted budget for the current year. However, there are 
other  types  of  appropriations  resulting  from  the  provisions  of  the  Financial  Regulation.  They  come  from 
previous  financial  years  or  outside  sources.  Thus  the  following  origins  of  appropriations  can  be 
differentiated: 

–  Budget appropriations from initial adopted budget and amending budgets; 
–  Appropriations carried over from previous year; 
–  Assigned  revenue  which  is  made  up  of  refunds,  EFTA  appropriations,  revenue  from  third 
parties/other countries, work for third parties and appropriations made available again as a result of 
repayment of payments on account. 

Composition of Total Available Budget 

Initial adopted budget = appropriations voted in year N-1; 

– 
–  Amending budgets adopted; 
–  Additional  appropriations  =  assigned  revenue  +  appropriations  carried  over  from  the  previous 

financial year or made available again following decommitments. 

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2.  NOTES TO THE EU BUDGET RESULT 

2.1.  CALCULATION OF THE BUDGET RESULT 

The budget result of the EU is returned to the Member States during the following year through deduction 
of their amounts due for that year. 

The amounts of own resources entered in the accounts are those credited during the course of the year 
to the accounts opened in the Commission's name by the governments of the Member States. Revenue 
comprises  also,  in  the  case  of  a  surplus,  of  the  budget  result  for  the  previous  financial  year.  The  other 
revenue entered in the accounts is the amount actually received during the course of the year. 

For  the  purposes  of  calculating  the  budget  result  for  the  year,  expenditure  comprises  payments  made 
against the year's appropriations plus any of the appropriations for that year that are carried over to the 
following year. Payments made against the year's appropriations means payments that are made by the 
accounting  officer  by  31  December of  the  financial  year.  For  the  EAGF,  payments  are  those  effected  by 
the Member States between 16 October N-1 and 15 October N, provided that the accounting officer was 
notified of the commitment and authorisation by 31 January N+1. EAGF expenditure may be subject to a 
conformity decision following controls in the Member States. 

The budget result comprises two elements: the result of the EU and the result of the participation of the 
EFTA  countries  belonging  to  the  European  Economic  Area  (EEA).  In  accordance  with  Article  15  of 
Regulation No 1150/2000 on own resources, this result represents the difference between: 

• 

• 

total revenue received for the financial year; and 

total payments made against current year's appropriations plus the total amount of that 
year's appropriations carried over to the following year. 

The following are added to or deducted from the resulting figure: 

• 

• 

• 

the net balance of cancellations of payment appropriations carried over from previous years 
and any payments which, because of fluctuations in the euro rate, exceed non-differentiated 
appropriations carried over from the previous year;  

the evolution of assigned revenue; and 

the net exchange-rate gains or losses recorded during the year. 

Appropriations  carried  over  from  the  previous  financial  year  in  respect  of  contributions  by  and  work  for 
third  parties,  which  by  definition  never  lapse,  are  included  as  additional  appropriations  for  the  financial 
year.  This  explains  the  difference  between  carryovers  from  the  previous  year  in  the  2015  budget 
implementation reports and those carried over to the following year in the 2014 budget implementation 
reports.  Appropriations  made  available  again  following  the  repayment  of  payments  on  account  are 
disregarded when calculating the budget result. 

Payment  appropriations  carried  over  include:  automatic  carryovers  and  carryovers  by  decision.  The 
cancellation  of  unused  payment  appropriations  carried  over  from  the  previous  year  shows  the 
cancellations of appropriations carried over automatically and by decision. 

112 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

2.2.  IMPLEMENTATION OF THE 2015 EU BUDGET 

Budget surplus of EUR 1.3 billion: 

–  The surplus comes primarily from the revenue side, in particular from the GNI and VAT resources 

revision of 2014 that was paid by Member States in 2015; 

–  The remaining EUR 182 million of surplus comes from exchange rate gains. 

Revenue: 

–  Revenue, totalling EUR 146.6 billion, was EUR 5.3 billion higher than the final adopted budget due 

primarily to assigned revenue under headings 5 and 6 – see table 4.1 below; 

–  Fines  revenue  of  EUR 1.3 billion  was  used  to  finance  the  increased  need  for  payment 

appropriations; 

–  There  was  an  exceptionally  high  revision  of  GNI  own  resources  made  in  2014  (EUR 9.5 billion) 
covering the period back to 2002. This had a significant impact on the budget revenue for 2015 
since amounts were only paid in 2015. 

Expenditure: 

–  Final  adopted  budget  payment  appropriations,  excluding  Special  Instruments,  totalled 

EUR 141.1 billion and were 1.6 % higher than in 2014 – see table 5.1; 

–  Total payments amounted to EUR 145.2 billion (2014: EUR 142.5 billion) – see table 5.3. 

Commitments & RAL: 

–  Available commitment appropriations of EUR 181.3 billion were implemented at an overall level of 

97.7 % – see table 5.2; 

–  Outstanding  commitments  ("RAL") 

to 
EUR 217.7 billion  at  end  2015  –  see  table  5.4.  This  reflects  the  increasing  implementation  of 
commitments of the new programming period. 

from  EUR 189.6 billion  at  end  2014 

increased 

A  more  detailed  analysis  of  budgetary  adjustments,  their  relevant  context,  their  justification  and  their 
impact  is  presented  in  Commission's  Report  on  Budgetary  and  Financial  Management  2015,  Part  A 
"Overview at budget level" and Part B dealing with each heading of the multi-annual financial framework. 

113 

 
 
 
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3.  NOTES TO THE RECONCILIATION OF ECONOMIC 

RESULT WITH BUDGET RESULT 

In accordance with the Financial Regulation, the economic result of the year is calculated on the basis of 
accrual accounting principles, while the budget result is based on modified cash accounting rules. As the 
economic result and the budget result both cover the same underlying transactions, it is a useful control 
to ensure that they are reconcilable.  

Reconciling items - Revenue 

The actual budgetary revenue for a financial year corresponds to the revenue collected from entitlements 
established  in  the  course  of  the  year  and  amounts  collected  from  entitlements  established  in  previous 
years. Therefore the entitlements established in the current year but not yet collected are to be deducted 
from the economic result for reconciliation purposes as they do not form part of budgetary revenue. On 
the contrary the entitlements established in previous years and collected in current year must be added 
to the economic result for reconciliation purposes.  

The net accrued revenue mainly consists of accrued revenue for agriculture, own resources and interests 
and dividends. Only the net-effect, i.e. accrued revenue for current year minus reversal accrued revenue 
from previous year, is taken into consideration.  

Reconciling items - Expenditure  

Net  accrued  expenses  mainly  consists  of  accruals  made  for  year-end  cut-off  purposes,  i.e.  eligible 
expenses  incurred  by  beneficiaries  of  EU  funds  but  not  yet  reported  to  the  Commission.  While  accrued 
expenses  are  not  considered  as  budgetary  expenditure,  payments  made  in  the  current  year  relating  to 
invoices registered in prior years are part of current year's budgetary expenditure. 

The  net  effect  of  pre-financing  is  the  combination  of  (1)  the  new  pre-financing  amounts  paid  in  the 
current  year  and  recognised  as  budgetary  expenditure  of  the  year  and  (2)  the  clearing  of  the  pre-
financing  paid  in  current  year  or  previous  years  through  the  acceptance  of  eligible  costs.  The  latter 
represent an expense in accrual terms but not in the budgetary accounts since the payment of the initial 
pre-financing had already been considered as a budgetary expenditure at the time of its payment.  

Besides  the  payments  made  against  the  year's  appropriations,  the  appropriations  for  that  year  that  are 
carried  forward  to  the  next  year  also  need  to  be  taken  into  account  in  calculating  the  budget  result  for 
the year (in accordance with Article 15 of Regulation No 1150/2000). The same applies for the budgetary 
payments made in the current year from carry-overs from previous years, and the cancellation of unused 
payment appropriations. 

The  movement  in  provisions  relates  to  year-end  estimates  made  in  the  financial  statements  (employee 
benefits mainly) that do not impact the budgetary accounts. Other reconciling amounts comprise different 
elements  such  as  asset  depreciation,  asset  acquisitions,  capital  lease  payments  and  financial 
participations for which the budgetary and accrual accounting treatments differ. 

114 

 
 
4. 

IMPLEMENTATION OF EU BUDGET REVENUE 

Annual accounts of the European Union 2015 

4.1.  SUMMARY OF THE IMPLEMENTATION OF BUDGET REVENUE 

Title 

Income appropriations 

Entitlements established 

Initial 
adopted 
budget 

139 639 
– 

Final 
adopted 
budget 

129 667 
8 568 

Current 
year 

Carried 
over 

Total 

130 733 
2 624 

 32 
5 407 

130 766 
8 031 

On entitle-
ments of 
current 
year 
130 729 
2 624 

Revenue 

On 
entitlements 
carried over 

Total 

Receipts as 
% of budget 

EUR millions 
Outstanding 

 9 
5 407 

130 738 
8 031 

100.83 % 
93.74 % 

 28 
– 

 14 

1 301 

1 301 

1 334 

 8 

1 343 

1 320 

 8 

1 329 

102.12 % 

Own resources 
Surpluses, balances and 
adjustments 
Revenue accruing from 
persons working with the 
institutions and other union 
bodies 
Revenue accruing from the 
administrative operation  of 
the institutions 
Contributions and refunds in 
connection with union 
agreements and 
programmes 
Interests on late payments 
and fines 
Borrowing and lending 
operations 
Miscellaneous revenue 

1 
3 

4 

5 

6 

7 

8 

9 
Total 

 54 

 94 

 560 

 21 

 581 

 548 

 15 

 563 

596.25 % 

 17 

 60 

 60 

4 202 

 271 

4 473 

4 065 

 133 

4 198 

6996.33 % 

 275 

 123 

1 523 

 480 

8 016 

8 497 

 7 

 37 

 45 

 3 

 48 

 256 

 39 

1 447 

1 703 

111.82 % 

6 793 

 3 

 42 

114.97 % 

 6 

 30 
141 214 

 30 
141 280 

 21 
139 999 

 9 
13 768 

 30 
153 768 

 18 
139 599 

 1 
7 024 

 19 
146 624 

64.21 % 
103.78 % 

 10 
7 144 

115 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

Chapter 

Income appropriations 

Entitlements established 

Revenue 

Detail Title 1: Own resources 

Sugar levies 
Customs duties 
VAT 
GNI 
Correction of budgetary 
imbalances 

11 
12 
13 
14 
15 

Total 

Initial 
adopted 
budget 

 125 
16 701 
18 264 
104 548 
– 

Final 
adopted 
budget 

 125 
18 635 
18 023 
92 884 
– 

Current 
year 

Carried 
over 

 124 
18 602 
18 269 
94 009 
 (270) 

– 
 32 
– 
– 
– 

Total 

 124 
18 634 
18 269 
94 009 
 (270) 

On entitle-
ments of 
current 
year 

 124 
18 597 
18 269 
94 009 
 (270) 

On 
entitlements 
carried over 

– 
 9 
– 
– 
– 

Receipts as 
% of budget 

99.21 % 
99.85 % 
101.36 % 
101.21 % 
- 

Total 

 124 
18 607 
18 269 
94 009 
 (270) 

139 639 

129 667 

130 733 

 32 

130 766 

130 729 

 9 

130 738 

100.83 % 

EUR millions 

Outstan- 
ding 

– 
 28 
– 
– 
– 

 28 

Chapter 

Income appropriations 

Entitlements established 

Revenue 

Detail Title 3: Surpluses, balances and adjustments 

Initial 
adopted 
budget 

Final 
adopted 
budget 

Current 
year 

Carried 
over 

Total 

Surplus from previous year 
VAT balances 
GNI balances 
Adjustment for non-
participation in JHAP 
United Kingdom correction - 
adjustments 
United Kingdom correction - 
Intermediate calculation 

30 
31 
32 
34 

35 

36 

Total 

– 
– 
– 
– 

– 

– 

– 

1 435 
 (193) 
7 326 
– 

– 

– 

1 435 
 24 
1 346 
 (7) 

 (27) 

 (146) 

– 
 (205) 
5 613 
– 

– 

– 

EUR millions 

Outstan- 
ding 

Receipts as 
% of budget 

On 
entitlem-
ents of 
current 
year 
1 435 
 24 
1 346 
 (7) 

1 435 
 (182) 
6 958 
 (7) 

 (27) 

 (27) 

 (146) 

 (146) 

On 
entitlements 
carried over 

– 
 (205) 
5 613 
– 

– 

– 

Total 

1 435 
 (182) 
6 958 
 (7) 

 (27) 

 (146) 

100.00 % 
94.40 % 
94.98 % 
- 

- 

- 

– 
– 
 (0) 
– 

– 

– 

– 

8 568 

2 624 

5 407 

8 031 

2 624 

5 407 

8 031 

93.74 % 

116 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

4.2.  REVENUE IMPLEMENTATION 

4.2.1.  Overview of 2015 revenue 

In  the  initial  adopted  EU  budget,  signed  by  the  President  of  the  European  Parliament  on 
17 December 2014,  the  amount  of  payment  appropriations  was  EUR 141 214 million  and  the  amount  to 
be  financed  by  own  resources  totalled  EUR 139 639 million.  The  revenue  and  expenditure  estimates  in 
the initial budget are typically adjusted during the budgetary year, such modifications being presented in 
Amending Budgets. Adjustments in the GNI-based own resources ensure that budgeted revenue matches 
exactly  budgeted  expenditure.  In  accordance  with  the  principle  of  equilibrium,  budget  revenue  and 
expenditure (payment appropriations) must be in balance. 

During  2015,  eight  amending  budgets  were  adopted.  Taking  them  into  account,  the  total  final  adopted 
revenue  for  2015  amounted  to  EUR 141 280 million.  This  was  financed  by  own  resources  totalling 
EUR 129 667 million  (thus  EUR 9 972 million  less  than  initially  forecasted)  and  the  remainder  by  other 
revenue.  This  is  explained  mainly  by the  surplus  from  the previous  financial  year,  extraordinary  income 
coming from the VAT and GNI adjustments of previous years and fines that reduced substantially Member 
States' GNI balancing contribution in 2015. As far as the own resources result is concerned, the collection 
of  traditional  own  resources  was  very  close  to  the  forecasted  amounts.  This  is  primarily  because  the 
budget estimates that were modified at the time the Amending Budget No. 6/2015 was established (they 
were  increased  by  EUR 1 134 million  according  to  the  new  forecasts  of  spring  2015),  were  again 
amended in the Amending Budget No. 8/2015 to take into account the actual rhythm of collection. Thus 
they were increased a second time by EUR 800 million. 

The final Member States' VAT and GNI payments also correspond closely to the final budgetary estimate. 
The differences between the forecasted amounts and the amounts actually paid are due to the differences 
between the euro rates used for budgetary purposes and the rates in force at the time when the Member 
States outside the EMU actually made their payments. 

The  VAT  &  GNI  balances  in  2014  included  major  revisions  for  the  GNI  dating  back  to  2002.  Thus  the 
adjustment was unprecedented in size totalling EUR 9.5 billion across all EU Member States. In order to 
address  the  exceptional  situation,  the  Council  adopted  on  18 December 2014  a  Commission  proposal 
(Council Regulation (EU, Euratom) No 1377/2014 of 18 December 2014) allowing Member States to defer 
payment,  interest  free,  under  strict  conditions,  up  to  1 September 2015.  Accordingly  6  Member  States 
opted to pay their adjustments in 2015. The deferred payment amounted to EUR 5.4 billion. The normal 
adjustment  corresponding  to  2015  totalled  EUR 1.4 billion.  The  heading  "Contributions  and  refunds  in 
connection  with  EU  agreements  and  programmes"  concerns  mainly  revenue  from  the  EAGF  and  EAFRD 
(and  in  particular  the  clearance  of  accounts  and  irregularities),  the  participation  of  third  countries  in 
research  programs  and  other  contributions  and  refunds  to  EU  programs/activities.  A  substantial  part  of 
this  total  is  made  up  of  earmarked  revenue,  which  typically  gives  rise  to  the  entering  of  additional 
appropriations on the expenditure side. 

The  Amending  Budget  No.  8/2015  included  fines  and  related  interest  on  undertakings  totalling 
EUR 1 345 million  that  were  known  at  the  time  when  the  corresponding  Draft  Amending  Budget  was 
established. By 31 December 2015, other fines became definitive, either after a definitive judgement or 
because companies did not appeal new fine decisions. 

4.2.2.  Own resources revenue 

The vast majority of revenue comes from own resources. This is laid down in Article 311 of the Treaty on 
the  Functioning  of  the  EU,  which  states  that:  "Without  prejudice  to  other  revenue,  the  budget  shall  be 
financed wholly from own resources." The bulk of budgetary expenditure is financed by own resources.  

Own resources can be divided into the following categories: 

(1) Traditional own resources (TOR) consist of customs duties and sugar levies. These own resources are 
levied on economic operators and collected by Member States on behalf of the EU. However, Member 
States  keep  25 %  as  a  compensation  for  their  collection  costs  (20 %  according  to  the  Council 
Decision No. 2014/335/EU, Euratom of 26 May 2014 waiting for finalisation of the ratification process 
for  retroactive  application  from  2014  onwards).  Customs  duties  are  levied  on  imports  of  products 
coming from third countries, at rates based on the Common Customs Tariff. Sugar levies are paid by 

117 

 
Annual accounts of the European Union 2015 

sugar  producers  to  finance  the  export  refunds  for  sugar.  TOR  usually  account  for  +/-  13 %  of  own 
resource revenue. 

(2) The own resource based on value added tax (VAT) is levied on Member States' VAT bases, which are 
harmonised  for  this  purpose  in  accordance  with  EU  rules.  The  same  percentage  is  levied  on  the 
harmonised  base  of  each  Member  State.  However,  the  VAT  base  to  take  into  account  is  capped  at 
50 % of each Member State’s GNI. The VAT-based resource usually accounts for around 13 % of own 
resource revenue. 

(3) The  resource  based  on  gross  national  income  (GNI)  is  used  to  balance  budget  revenue  and 
expenditure, i.e. to finance the part of the budget not covered by any other sources of revenue. The 
same percentage rate is levied on each Member States' GNI, which is established in accordance with 
EU rules. The GNI-based resource usually accounts for +/- 74 % of own resource revenue. 

The  allocation  of  own  resources  is  made  in  accordance  with  the  rules  laid  down  in  the  Council  Decision 
No. 2007/436/EC, Euratom of 7 June 2007 on the system of the EU's own resources (ORD 2007). A new 
decision  establishing  the  system  of the  EU’s own  resources  has  been  adopted  for  the  2014-2020  period 
(ORD 2014: Council Decision No. 2014/335/EU, Euratom of 26 May 2014). The 2014 ORD will enter into 
force  after  it  has  been  ratified  by  all  Member  States  according  to  their  constitutional  rules  (expected  in 
2016).  Until  then,  the  ORD  2007  remains  valid.  The  retroactive  effects  (the  ORD  2014  will  apply  from 
1 January 2014) will be taken into account in the budgetary year when the decision will enter into force. 

4.2.3. 

Traditional own resources 

All established traditional own resource amounts must be entered in one or other of the accounts kept by 
the competent authorities: 

• 

• 

In  the  ordinary  accounts  provided  for  in  Article  6(3)(a)  of  Regulation  No  1150/2000:  all 
amounts recovered or guaranteed. 
In  the  separate  accounts  provided  for  in  Article  6(3)(b)  of  Regulation  No  1150/2000:  all 
amounts not yet recovered and/or not guaranteed; amounts guaranteed but challenged may 
also be entered in this account. 

For the separate account, the Member States quarterly statement to the Commission includes: 

• 
• 
• 
• 

• 
• 

the balance to be recovered during the previous quarter, 
the established entitlements during the quarter in question, 
rectifications of the base (corrections/cancellations) during the quarter in question, 
amounts written off (which cannot be made available according to Article 17(2) of Regulation 
1150/2000), 
the amounts recovered during the quarter in question, 
the balance to be recovered at the end of the quarter in question. 

Traditional  own  resources  must  be  entered  in  the  Commission's  account  with  the  Treasury  or  the  body 
appointed by the Member State at the latest on the first working day following the 19th day of the second 
month following the month during which the entitlement was established (or recovered in the case of the 
separate  account).  Member  States  retain,  by  way  of  collection  costs,  25 %  of  traditional  own  resources 
(20 %  according  to  the  Council  Decision  No.  2014/335/EU,  Euratom  of  26  May  2014  waiting  for 
finalisation of the ratification process for retroactive application from 2014 onwards). The contingent own 
resources entitlements are adjusted on the basis of the likelihood of their recovery. 

4.2.4.  VAT-based resources and GNI-based resources 

VAT-based  own  resources  derive  from  the  application  of  a  uniform  rate,  for  all  Member  States,  to  the 
harmonised  VAT  base  determined  in  accordance  with  the  rules  of  Article  2(1)(b)  of  the  ORD  2007.  The 
uniform rate is fixed at 0.30 % except for the period 2007-2013 in which the rate of call for Austria was 
fixed  at 0.225 %,  for  Germany  at  0.15 %  and  for Netherlands  and  Sweden at  0.10 %.  The  VAT  base is 
capped at 50 % of GNI for all Member States. According to the 2014 ORD, the rate of call will remain at 
0.3 %, except for the period 2014-20 the rate of call for Germany, the Netherlands and Sweden will be 
fixed  at  0.15 %.  These  lower  rates  will  be  implemented  retroactively  once  the  ratification  of  the  ORD 
2014 will be finalised. 

118 

 
Annual accounts of the European Union 2015 

The  GNI-based  resource  is  a  variable  resource  intended  to  supply  the  revenue  required,  in  any  given 
year, to cover expenditure exceeding the amount collected from traditional own resources, VAT resources 
and miscellaneous revenue. The revenue derives from the application of a uniform rate to the aggregate 
GNI of all the Member States. VAT and GNI-based resources are determined on the basis of forecasts of 
VAT  and  GNI  bases  made  when  the  draft  budget  is  being  prepared.  These  forecasts  are  subsequently 
revised;  the  figures  are  updated  during  the  budget  year  in  question  by  means  of  an  amending  budget. 
The actual figures for the VAT and GNI bases are available in the course of the year following the budget 
year  in  question.  The  Commission  calculates  the  differences  between  the  amounts  due  by  the  Member 
States by reference to the actual bases and the sums actually paid on the basis of the (revised) forecasts. 
These  VAT  and  GNI  balances,  either  positive  or  negative,  are  called  in  by  the  Commission  from  the 
Member States for the first working day of December of the year following the budget year in question. 
The  Council  adopted  on  18  December  2014  Regulation  (EU,  Euratom)  No  1377/2014  which  allows 
Member States, under certain conditions, to defer making available the amounts of VAT and GNI balances 
until the first working day of September of the following year. Corrections may still be made to the actual 
VAT  and  GNI  bases  during  the  subsequent  four  years,  unless  a  reservation  is  issued.  The  balances 
calculated  earlier  are  adjusted  and  the  difference  is  called  in  at  the  same  time  as  the  VAT  and  GNI 
balances for the previous budget year. 

When  conducting  controls  of  VAT  statements  and  GNI  data,  the  Commission  may  notify  reservations  to 
the  Member  States  regarding  certain  points  which  may  have  consequences  to  their  own  resources 
contributions.  These  points,  for  example,  may  result  from  an  absence  of  acceptable  data,  or  a  need  to 
develop a suitable methodology. These reservations have to be seen as potential claims on the Member 
States  for  uncertain  amounts  as  their  financial  impact  cannot  be  estimated  with  accuracy.  When  the 
exact  amount  can  be  determined,  the  corresponding  VAT  and  GNI-based  resources  are  called  either  in 
connection with VAT and GNI balances or by individual calls for funds. 

4.2.5.  UK correction 

This  mechanism  reduces  the  own  resources  payments  of  the  UK  in  proportion  to  what  is  known  as  its 
"budgetary  imbalance"  and  increases  the  own  resources  payments  of  the  other  Member  States 
correspondingly.  The  budgetary  imbalance  correction  mechanism  in  favour  of  the  United  Kingdom  was 
instituted  by  the  European  Council  in  Fontainebleau  (June  1984)  and  the  resulting  Own  Resources 
Decision of 7 May 1985. The purpose of the mechanism was to reduce the budgetary imbalance of the UK 
through a reduction in its payments to the EU. Germany, Austria, Sweden and Netherlands benefit from a 
reduced financing of the correction (restricted to one fourth of their normal share). 

4.2.6.  Gross reduction 

The European Council of 7-8 February 2013 concluded that Denmark, the Netherlands and Sweden are to 
benefit  from  gross  reductions  in  their  annual  contributions  based on  GNI  for  the  period  2014-2020  only 
and that Austria is to benefit from gross reductions in its annual GNI-based contributions for the period 
2014-2016  only.  Denmark,  the  Netherlands  and  Sweden  shall  benefit  from  gross  reductions  in  their 
annual  GNI-based  contribution  of  EUR 130 million,  EUR 695 million  and  EUR 185 million  respectively. 
Austria  shall  benefit  from  a  gross  reduction  in  its  annual  GNI-based  contribution  of  EUR 30 million  in 
2014, EUR 20 million in 2015 and EUR 10 million in 2016 (all amounts in 2011 prices). These provisions 
were taken up in the ORD 2014 and applied (retroactively) after its entry into force. 

119 

 
 
5. 

IMPLEMENTATION OF EU BUDGET EXPENDITURE 

Annual accounts of the European Union 2015 

5.1.  MFF: BREAKDOWN & CHANGES IN COMMITMENT & PAYMENT APPROPRIATIONS 

Commitment appropriations

Payment appropriations 

Budget appropriations 
Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Initial 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

1 

2 

3=1+2

4

66 782 

11 173 

77 955

8 480

17 552 

 0 

17 552

–

5

2 949

2 538

Total 
Appro-
priations 
available 

6=3+4+5 

89 384

20 090

Budget appropriations 

Initial adopted 
budget 

Amending 
budgets & 
transfers 

7 

8

Final 
adopted 
budget 

9=7+8

66 923 

(347)

66 576

15 798 

(189)

15 609

49 230 

11 173 

60 403

8 480

411

69 293

51 125 

(158)

50 967

Additional 
appropriations 

Carry-overs

Assigned 
revenue 

10

11

MFF Heading 

1. Smart and inclusive 
growth 

1a: Competitiveness 
for growth and jobs 
1b: Economic, social 
and territorial 
cohesion 

2. Sustainable growth: 
natural resources 

of which: Market 
related expenditure 
and direct payments 

3. Security and 
citizenship 
4. Global Europe 
5. Administration 

of which: 
Administrative 
expenditure of the 
institutions 
6. Compensations 
8. Negative reserve 
9. Special Instruments 
Total 

58 809 

5 069 

63 877

2 867

43 456 

 (1) 

43 455

2 147 

8 408 
8 660 
3 667 

 375 

 386 
 (0) 
 (0) 

2 522

8 795
8 660
3 667

868

254

335
93
93

– 
– 
 515 
145 322 

– 
– 
 (51) 
16 952 

–
–
465
162 273 

–
–
162
12 191 

2 395

1 973

93

644
672
327

–
–
69
6 822 

69 140

46 296

2 869

9 774
9 425
4 087

–
–
696
181 286 

55 999 

43 448 

1 860 

7 422 
8 659 
3 667 

– 
– 
 352 
141 214 

120 

EUR millions 

Total 
Appro-
priations 
available 
12=9+10+
11 
70 316 

3 612

3 263

18 984 

349

51 332 

2 374

59 489 

1 973

46 304 

84

534
681
334

2 055 

8 228 
10 185 
4 543 

128

112

16

902

884

8

42
845
543

214

(1)

104

229
0
(0)

56 213

43 447

1 963

7 652
8 659
3 667

–
–
(134)
 66 

–
–
218
141 280 

–
–
36
1 960 

–
–
69
7 354 

– 
– 
322 
150 595 

 
 
 
 
 
 
 
 
 
 
5.2.  MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Union 2015 

MFF Heading 

Total 
appropri- 
ations 
available 

Commitments made

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total

%

Appropriations carried over to 2016
%

Total

assig- 
ned 
revenue 

carry-
overs by 
decision 

Appropriations lapsing

EUR millions 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 
(EFTA) 

Total 

% 

1 

2 

3 

4 

5=2+3+
4 

6=5/1 

7 

8 

9=7+
8 

10=9/1 

11 

12 

13 

1. 

2. 

3. 
4. 
5. 

6. 
8. 
9. 
Total 

Smart and inclusive 
growth 
1a: Competitiveness for 
growth and jobs 
1b: Economic, social and 
territorial cohesion 
Sustainable growth: 
natural resources 
of which: Market related 
expenditure and direct 
payments 
Security and citizenship 
Global Europe 
Administration 
of which: Administrative 
expenditure of the 
institutions 
Compensations 
Negative reserve 
Special Instruments 

89 384 

77 917 

8 480 

1 754 

88 151 

98.62 % 

1 190 

20 090 

17 542 

– 

1 364 

18 905 

94.10 % 

1 170 

69 293 

60 375 

8 480 

 391 

69 246 

99.93 % 

 20 

 7 

 0 

 7 

1 198 

1.34 % 

1 170 

5.83 % 

 27 

0.04 % 

69 140 

63 432 

2 853 

1 090 

67 375 

97.45 % 

1 306 

 410 

1 716 

2.48 % 

46 296 

43 018 

 854 

1 077 

44 948 

97.09 % 

 896 

 410 

1 306 

2.82 % 

2 869 
9 774 
9 425 
4 087 

2 520 
8 745 
8 577 
3 585 

 254 
 335 
 92 
 92 

 53 
 317 
 484 
 276 

2 826 
9 397 
9 154 
3 954 

98.49 % 
96.15 % 
97.12 % 
96.74 % 

– 
– 
 696 
181 286 

– 
– 
 126 
161 317 

– 
– 
 162 
12 175 

– 
– 
– 
3 698 

– 
– 
 288 
177 190 

0.00 % 
0.00 % 
41.46 % 

97.74 % 

 41 
 327 
 187 
 51 

– 
– 
 69 
3 119 

– 
 17 
 2 
 2 

 41 
 344 
 189 
 53 

1.42 % 
3.52 % 
2.01 % 
1.29 % 

– 
– 
 219 
 656 

– 
– 
 288 
3 775 

0.00 % 
0.00 % 
41.43 % 
2.08 % 

 30 

 10 

 21 

 35 

 27 

 2 
 32 
 82 
 80 

– 
– 
 119 
 301 

– 

– 

– 

 14 

 14 

 0 
 1 
 1 
 1 

– 
– 
– 
 15 

 5 

 5 

– 

– 

– 

 0 
– 
– 
 0 

– 
– 
– 
 5 

14=11
+12+
13 

 35 

15=14/1 

0.04 % 

 14 

0.07 % 

 21 

0.03 % 

 49 

0.07 % 

 42 

0.09 % 

 3 
 33 
 82 
 81 

0.09 % 
0.34 % 
0.87 % 
1.97 % 

– 
– 
 119 
 321 

0.00 % 
0.00 % 
17.11 % 
0.18 % 

121 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.3.  MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS 

Annual accounts of the European Union 2015 

MFF Heading 

Total 
appropri-  
ations 
available 

from final 
adopted 
budget 

Payments made
from 
assigned 
revenue 

from 
carry-
overs 

Total 

% 

Appropriations carried over to 2016
assigned 
revenue 

Total 

carry-
overs by 
decision 

Appropriations lapsing

EUR millions 

% 

from final 
adopted 
budget 

from 
carry-
overs 

assigned 
revenue 
(EFTA) 

Total 

% 

1 

2 

3 

4 

5=2+3+4 

6=5/1 

70 316 

66 429 

 114 

1 466 

68 009 

96.72 % 

18 984 

15 482 

 100 

1 221 

16 802 

88.50 % 

8 

9 

10=7+8+
9 

11=10/1 

12 

13 

14 

 2 

 2 

2 144 

2 264 

3.22 % 

2 041 

2 147 

11.31 % 

 27 

 22 

 14 

 12 

automatic 
carry-
overs 

7 

 119 

 104 

1.  

2.  

3.  

4.  
5 

6.  
8.  
9.  

Smart and 
inclusive growth 
1a: 
Competitiveness 
for growth and 
jobs 
1b: Economic, 
social and 
territorial 
cohesion 
Sustainable 
growth: natural 
resources 
of which: Market 
related 
expenditure and 
direct payments 
Security and 
citizenship 
Global Europe 
Administration 
of which: 
Administrative 
expenditure of 
the institutions 
Compensations 
Negative reserve 
Special 
Instruments 

51 332 

50 947 

 14 

 246 

51 207 

99.76 % 

 15 

– 

 103 

 118 

0.23 % 

 5 

 2 

59 489 

55 748 

 885 

1 432 

58 066 

97.61 % 

 20 

 410 

 942 

1 372 

2.31 % 

 35 

 17 

46 304 

42 995 

 868 

1 077 

44 940 

97.05 % 

 14 

 410 

 896 

1 320 

2.85 % 

 28 

 16 

2 055 

1 951 

 7 

 60 

2 019 

98.22 % 

8 228 
10 185 
4 543 

7 611 
7 871 
3 129 

 37 
 680 
 408 

– 
– 
 322 

– 
– 
 217 

– 
– 
 36 

 237 
 427 
 254 

– 
– 
 35 

7 884 
8 978 
3 791 

95.82 % 
88.14 % 
83.43 % 

– 
– 
 288 

0.00 % 
0.00 % 
89.41 % 

 9 

 33 
 704 
 456 

– 
 0 
 1 

– 

– 
 2 
 2 

– 
– 
– 

 23 

 297 
 255 
 80 

– 
– 
 33 

 32 

1.58 % 

 330 
 961 
 537 

4.02 % 
9.44 % 
11.83 % 

– 
– 
 34 

0.00 % 
0.00 % 
10.51 % 

 3 

 8 
 82 
 80 

– 
– 
 0 

 1 

 5 
 165 
 135 

– 
– 
 0 

Total 

150 595 

139 827 

1 759 

3 657 

145 243 

96.45 % 

 886 

 413 

3 695 

4 994 

3.32 % 

 154 

 202 

122 

15=12+
13+14 
 42 

16=15/1 

0.06 % 

 36 

0.19 % 

 7 

0.01 % 

 51 

0.09 % 

 44 

0.10 % 

 4 

0.20 % 

 13 
 246 
 215 

– 
– 
 0 

0.16 % 
2.42 % 
4.74 % 

0.00 % 
0.00 % 
0.08 % 

 358 

0.24 % 

 2 

 2 

– 

– 

– 

 0 

– 
– 
– 

– 
– 
– 

 2 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.4.  MFF: MOVEMENTS IN COMMITMENTS OUTSTANDING (RAL) 

Annual accounts of the European Union 2015 

Commitments outstanding at the end of previous year

Commitments of the year

Commitments 
carried forward 
from previous 
year 
143 009 
33 532 

Decommitments/
Revaluations/  
Cancellations 

Payments

Commitments 
outstanding at 
year-end 

Commitments 
made during 
the year 

Payments

Cancellation of 
commitments 
which cannot 
be carried over 

Commitments 
outstanding at 
year-end 

MFF Heading 

1.  

2.  

3.  
4.  
5.  

6.  
8.  
9.  
Total 

Smart and inclusive growth 
1a: Competitiveness for growth 
and jobs 
1b: Economic, social and 
territorial cohesion 
Sustainable growth: natural 
resources 
of which: Market related 
expenditure and direct 
payments 
Security and citizenship 
Global Europe 
Administration 
of which: Administrative 
expenditure of the institutions 
Compensations 
Negative reserve 
Special Instruments 

(2 320)
(1 177)

(57 944)
(10 967)

109 477 

(1 143)

(46 977)

19 382 

(500)

(8 803)

82 746
21 389

61 357

10 079

88 151
18 905

(10 066)
(5 835)

69 246

(4 230)

67 375

(49 263)

 43 

(2)

(30)

11

44 948

(44 910)

2 582 
23 846 
 781 
 469 

– 
– 
 0 
189 600 

(252)
(685)
(97)
(67)

–
–
(0)
(3 855)

(864)
(5 934)
(683)
(401)

–
–
(0)
(74 227)

1 466
17 227
1
0

–
–
–
111 518

2 826
9 397
9 154
3 954

–
–
 288
177 190

(1 155)
(1 951)
(8 294)
(3 389)

–
–
(288)
(71 016)

123 

EUR millions 
Total 
commitments  
outstanding at 
the end of the 
year 

160 827 
34 455 

126 372 

28 191 

 49 

3 137 
24 673 
 865 
 570 

– 
– 
 1 
217 692 

(4)
(4)

(0)

(0)

–

–
(0)
5
5

–
–
–
–

78 081
13 066

65 015

18 112

38

1 671
7 446
864
570

–
–
1
106 175

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

5.5.  MFF: BREAKDOWN OF COMMITMENTS OUTSTANDING BY YEAR OF ORIGIN 

MFF Heading 

Smart and inclusive growth 
1a: Competitiveness for growth 
and jobs 
1b: Economic, social and 
territorial cohesion 
Sustainable growth: natural 
resources 
of which: Market related 
expenditure and direct 
payments 
Security and citizenship 
Global Europe 
Administration 
of which: Administrative 
expenditure of the institutions 
Special Instruments 

1. 

2. 

3. 
4. 
5. 

9. 
Total 

< 2009 
1 949 
   295 

  1 653 

 223 

– 

 21 
 938 
– 
 0 

2009
710
  672

  38

62

–

39
522
–
0

2010
1 446
 1 209

  237

82

–

62
883
–
0

– 
  3 130 

–
 1 333

–
 2 473

2011
2 995
 1 541

 1 455

127

  0

136
1 412
–
0

–
 4 671

2012
11 077
  3 885

2013
35 400
 5 942

2014
29 168
 7 844

2015
78 081
 13 066

EUR millions 
Total 
160 827 
 34 455 

  7 191

 29 459

 21 324

 65 015

 126 372 

 213

  3

 277
3 364
–
0

7 231

–

580
4 719
0
0

2 140

  8

350
5 390
0
0

18 112

28 191 

  38

   49 

1 671
7 446
864
  570

3 137 
24 673 
 865 
   570 

–
  14 931

–
 47 931

–
 37 049

1
 106 175

 1 
 217 692 

124 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

5.6.  POLICY AREA: BREAKDOWN AND CHANGES IN COMMITMENT AND PAYMENT 

APPROPRIATIONS 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Additional appropriations 

Initial adopted 
budget 

Amending 
budgets & 
transfers 

Policy area 

01  Economic and 

financial affairs 
02  Enterprise and 
industry 
03  Competition 
04  Employment, social 
affairs and inclusion 
05  Agriculture and rural 

development 
06  Mobility and 

transport 
07  Environment 
08  Research and 

innovation 
09  Communications 

networks, content 
and technology 
10  Direct research 
11  Maritime affairs and 

12 

fisheries 
Internal market and 
services 

Budget appropriations 
Amending 
budgets & 
transfers 

Initial 
adopted 
budget 

Final 
adopted 
budget 

Additional 
appropriations 

Carried 
over 

Assigned 
revenue 

1 
 371 

2 
1 281 

3=1+2
1 652

2 536 

 (19) 

2 517

4

–

–

 98 
13 096 

 (1) 
2 817 

97
15 913

–
2 161

5
118

298

6
83

Total 
appropri- 
ations 
available 
6=3+4+5
1 770

2 815

103
18 157

57 603 

4 347 

61 951

2 912

2 382

67 245

3 281 

 (699) 

2 582

 431 
6 699 

1 727 

 404 
1 082 

 119 

 0 
 (501) 

432
6 198

 0 

1 728

 (11) 
 724 

 (3) 

393
1 806

116

–

–
–

–

–
29

–

2 760

448
6 967

1 897

944
1 866

128

7 

 459

2 266

98
10 929

54 942

2 056

 397
5 987

1 727

 402
1 007

 115

Final 
adopted 
budget 

9=7+8
416

2 147

97
10 625

55 240

1 960

395
5 843

1 748

397
958

111

40 851

151

2 825

244
536

1 133
556

114
4 382

963
1 275

76

Carried 
over 

Assigned 
revenue 

10

11

7

19

7
51

892

5

16
23

16

44
3

4

11

5

14

12
10

3
10

3
26

5
10

7

121

369

6
175

2 376

174

14
1 223

254

492
14

12

267

8

610

12
25

41
47

3
212

11
140

1

8
(43)

(120)

(1)
(305)

298

(96)

(3)
(144)

21

(5)
(49)

(4)

131

13

164

5
(31)

161
(22)

(10)
74

(13)
277

(0)

EUR millions 

Total 
appropri-  
ations 
available 
12=9+10+11 

 544 

2 534 

 110 
10 850 

58 508 

2 139 

 425 
7 089 

2 018 

 933 
 975 

 127 

41 130 

 163 

3 450 

 269 
 572 

1 178 
 612 

 121 
4 620 

 980 
1 426 

 83 

13  Regional and urban 

35 347 

8 393 

43 739

6 481

14 

policy 
Taxation and 
customs union 
15  Education and 
culture 

16  Communication 
17  Health and 

consumer protection 

18  Home affairs 
19 

Foreign policy 
instruments 
Trade 

20 
21  Development and 
cooperation 
22  Enlargement 
23  Humanitarian aid 

and civil protection 
Fight against fraud 

24 

 161 

 (0) 

161

2 918 

 (26) 

2 892

 245 
 616 

1 172 
 759 

 115 
5 023 

1 524 
1 019 

 80 

 2 
 (14) 

 389 
 (51) 

 (1) 
 391 

 1 
 164 

 (0) 

247
601

1 560
708

114
5 414

1 525
1 183

79

–

–

–
7

247
15

0
7

40
199

–

178

17
769

169

551
31

12

422

9

447

12
24

53
51

3
281

15
173

1

50 642

40 721

 137

2 661

 240
 567

 972
 578

 124
4 308

 976
 999

76

170

3 339

259
632

1 860
774

117
5 702

1 580
1 555

80

125 

 
 
 
 
 
 
 
 
 
EUR millions 

Total 
appropri-  
ations 
available 
12=9+10+11 

 218 

1 335 

 71 
 13 
 144 
1 563 

 471 
1 123 
 188 
 70 
– 
4 543 
150 595 

Annual accounts of the European Union 2015 

Commitment appropriations 

Payment appropriations 

Policy area 

25  Commission's policy 
coordination and 
legal advice 

26  Commission's 
administration 

27  Budget 
28  Audit 
29  Statistics 
30 

Pensions and related 
expenditure 
Language services 

31 
32  Energy 
33 
Justice 
34  Climate action 
40  Reserves 
90  Other institutions 
Total 

1 
 192 

 997 

 70 
 12 
 134 
1 567 

 389 
1 064 
 209 
 127 
 465 
3 667 
145 322 

Budget appropriations 
Amending 
budgets & 
transfers 

Initial 
adopted 
budget 

Final 
adopted 
budget 

Additional 
appropriations 

Carried 
over 

Assigned 
revenue 

2 

 1 

3=1+2
192

4

 16 

1 013

 (14) 
 0 
 1 
 (4) 

 (5) 
 (100) 
 2 
 0 
 (127) 
 (0) 
16 952 

57
12
135
1 563

384
964
211
128
338
3 667
162 273 

–

–

–
–
–
–

–
–
–
–
–
93
12 191 

5

11

162

8
1
14
0

70
114
9
1
–
327
6 822 

Total 
appropri- 
ations 
available 
6=3+4+5

204

1 176

64
13
149
1 563

454
1 078
220
129
338
4 087
181 286 

Budget appropriations 

Additional appropriations 

Initial adopted 
budget 

Amending 
budgets & 
transfers 

7 

 192

 992

70
12
 116
1 567

 389
1 035
 195
84
 150
3 667
141 214 

8

1

19

(14)
0
1
(4)

(5)
(43)
(20)
(18)
(150)
(0)
 66 

Final 
adopted 
budget 

9=7+8
192

1 011

57
12
117
1 563

384
992
175
66
–
3 667
141 280 

Carried 
over 

Assigned 
revenue 

10

14

158

7
0
5
–

18
6
3
3
–
543
1 960 

11

11

166

8
1
22
0

70
125
10
1
–
334
7 354 

126 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

5.6.1. 

POLICY AREA: COMPARISON OF BUDGET AND ACTUAL COMMITMENTS 

Additional
appro-
priations* 

118

Total 
appropriations 
available 

1 770 

Initial 
adopted 
budget 

 371 

Amending
budgets & 
transfers 
1 281

2 536 
 98 
13 096 

57 603 

3 281 
 431 
6 699 
1 727 

 404 
1 082 

 119 

35 347 
 161 

2 918 
 245 
 616 

1 172 
 759 
 115 
5 023 

1 524 
1 019 

 80 
 192 

 997 

 70 
 12 
 134 
1 567 

(19)
(1)
2 817

4 347

(699)
0
(501)
0

(11)
724

(3)

8 393
(0)

(26)
2
(14)

389
(51)
(1)
391

1
164

(0)
1

16

(14)
0
1
(4)

Final
adopted 
budget 
1 652

2 517
97
15 913

61 951

2 582
432
6 198
1 728

393
1 806

116

298
6
2 244

5 294

178
17
769
169

551
60

12

43 739
161

6 903
9

2 892
247
601

1 560
708
114
5 414

1 525
1 183

79
192

1 013

57
12
135
1 563

447
12
30

300
66
3
288

55
372

1
11

162

8
1
14
0

EUR millions 

Commitments
made 

1 654

2 704
100
18 069

65 492

2 683
443
6 674
1 833

504
1 834

126

50 599
165

3 249
253
622

1 837
706
116
5 596

1 573
1 484

79
199

1 121

60
12
141
1 563

2 815 
 103 
18 157 

67 245 

2 760 
 448 
6 967 
1 897 

 944 
1 866 

 128 

50 642 
 170 

3 339 
 259 
 632 

1 860 
 774 
 117 
5 702 

1 580 
1 555 

 80 
 204 

1 176 

 64 
 13 
 149 
1 563 

Policy area 

01  Economic and financial 

affairs 

02  Enterprise and industry 
03  Competition 
04  Employment, social affairs

and inclusion 

05  Agriculture and rural 

development 

06  Mobility and transport 
07  Environment 
08  Research and innovation 
09  Communications 

networks, content and 
technology 
10  Direct research 
11  Maritime affairs and 

12 

fisheries 
Internal market and 
services 

13  Regional and urban policy
14  Taxation and customs 

union 

15  Education and culture 
16  Communication 
17  Health and consumer 

protection 

Foreign policy instruments

18  Home affairs 
19 
20  Trade 
21  Development and 
cooperation 
22  Enlargement 
23  Humanitarian aid and civil

protection 
Fight against fraud 

24 
25  Commission's policy 

coordination and legal 
advice 
26  Commission's 
administration 

27  Budget 
28  Audit 
29  Statistics 
30 

Pensions and related 
expenditure 
Language services 

31 
32  Energy 
Justice 
33 
34  Climate action 
40  Reserves 
90  Other institutions 

Total 

 389 
1 064 
 209 
 127 
 465 
3 667 
145 322 

(5)
(100)
2
0
(127)
(0)
16 952

384
964
211
128
338
3 667
162 273

70
114
9
1
–
420
19 013

 454 
1 078 
 220 
 129 
 338 
4 087 
181 286 

425
980
212
128
–
3 954
177 190

* Additional appropriations include appropriations carried over from previous year, assigned revenue and appropriations made available 
again following decommitments. 

127 

 
 
 
 
 
 
 
 
 
 
5.7.  POLICY AREA: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Union 2015 

Policy area 

Total 
appro-
priations 
available 

Commitments made

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total

%

Appropriations carried over to 2016
%

Total

assigned 
revenue 

carry-
overs by 
decision 

Appropriations lapsing

EUR millions 

from final 
adopted 
budget 

from 
carry-
overs 

Assigned 
revenue 
(EFTA) 

Total 

% 

01 

02 
03 
04 

05 

06 
07 
08 
09 

10 
11 

12 

13 

14 

15 
16 
17 

18 
19 

20 
21 

22 
23 

24 
25 

26 

27 
28 
29 

Economic and financial 
affairs 
Enterprise and industry 
Competition 
Employment, social 
affairs and inclusion 
Agriculture and rural 
development 
Mobility and transport 
Environment 
Research and innovation 
Communications 
networks, content and 
technology 
Direct research 
Maritime affairs and 
fisheries 
Internal market and 
services 
Regional and urban 
policy 
Taxation and customs 
union 
Education and culture 
Communication 
Health and consumer 
protection 
Home affairs 
Foreign policy 
instruments 
Trade 
Development and 
cooperation 
Enlargement 
Humanitarian aid and 
civil protection 
Fight against fraud 
Commission's policy 
coordination and legal 
advice 
Commission's 
administration 
Budget 
Audit 
Statistics 

1 

2 

3 

4 

5=2+3+
4 

6=5/1 

7 

8 

9=7+
8 

10=9/1 

11 

12 

13 

1 770 

1 651 

– 

 3 

1 654 

93.42 % 

 115 

2 815 
 103 
18 157 

2 521 
 97 
15 902 

– 
– 
2 161 

 184 
 3 
 6 

2 704 
 100 
18 069 

96.07 % 
97.52 % 
99.51 % 

 110 
 3 
 77 

– 

– 
– 
– 

 115 

6.51 % 

 110 
 3 
 77 

3.91 % 
2.46 % 
0.42 % 

 1 

 (4) 
 0 
 12 

– 

– 
– 
– 

67 245 

61 508 

2 898 

1 086 

65 492 

97.39 % 

1 296 

 410 

1 705 

2.54 % 

 33 

 14 

2 760 
 448 
6 967 
1 897 

 944 
1 866 

2 579 
 431 
6 197 
1 728 

 393 
1 803 

 128 

 116 

– 
– 
– 
– 

– 
 29 

– 

 104 
 12 
 477 
 105 

 111 
 2 

2 683 
 443 
6 674 
1 833 

97.22 % 
98.81 % 
95.79 % 
96.63 % 

 504 
1 834 

53.44 % 
98.32 % 

 10 

 126 

98.15 % 

50 642 

43 725 

6 481 

 393 

50 599 

99.91 % 

 170 

 161 

3 339 
 259 
 632 

1 860 
 774 

 117 
5 702 

1 580 
1 555 

 80 
 204 

2 891 
 246 
 601 

1 559 
 663 

 114 
5 406 

1 524 
1 182 

 79 
 192 

1 176 

1 013 

 64 
 13 
 149 

 57 
 12 
 135 

– 

– 
– 
 7 

 247 
 15 

– 
 7 

 40 
 199 

– 
– 

– 

– 
– 
– 

 4 

 165 

96.71 % 

 358 
 7 
 15 

 31 
 28 

 2 
 183 

 9 
 103 

 0 
 6 

3 249 
 253 
 622 

97.31 % 
97.89 % 
98.52 % 

1 837 
 706 

98.74 % 
91.12 % 

 116 
5 596 

98.46 % 
98.15 % 

1 573 
1 484 

99.56 % 
95.39 % 

 79 
 199 

98.44 % 
97.32 % 

 107 

1 121 

95.30 % 

 55 

 4 
 0 
 6 

 60 
 12 
 141 

94.03 % 
96.96 % 
94.86 % 

 4 
 0 
 7 

128 

 74 
 5 
 292 
 64 

 439 
 29 

 2 

 29 

 5 

 89 
 5 
 9 

 22 
 23 

 2 
 98 

 6 
 70 

 1 
 5 

– 
– 
– 
– 

– 
 0 

– 

– 

 0 

– 
– 
– 

– 
 17 

– 
 7 

– 
– 

– 
 0 

– 

– 
– 
– 

 74 
 5 
 292 
 64 

2.67 % 
1.04 % 
4.19 % 
3.37 % 

 439 
 29 

46.56 % 
1.56 % 

 2 

1.77 % 

 3 
 1 
 1 
 0 

 0 
 2 

 0 

 29 

0.06 % 

 14 

 5 

3.17 % 

 89 
 5 
 9 

 22 
 40 

2.67 % 
1.99 % 
1.44 % 

1.20 % 
5.18 % 

 2 
 105 

1.30 % 
1.85 % 

 6 
 70 

 1 
 5 

0.37 % 
4.51 % 

1.18 % 
2.61 % 

 55 

4.68 % 

 4 
 0 
 7 

5.85 % 
3.00 % 
4.92 % 

 0 

 1 
 0 
 0 

 1 
 28 

 0 
 0 

 1 
 2 

 0 
 0 

 0 

 0 
 0 
 0 

– 
– 
– 
– 

– 
– 

– 

– 

– 

– 
– 
– 

 0 
 0 

 0 
– 

– 
– 

– 
– 

– 

– 
– 
– 

14=11
+12+
13 

15=14/1 

 1 

0.06 % 

 1 
 0 
 12 

0.02 % 
0.02 % 
0.06 % 

 47 

0.07 % 

 3 
 1 
 1 
 0 

 0 
 2 

 0 

0.11 % 
0.14 % 
0.02 % 
0.00 % 

0.00 % 
0.12 % 

0.08 % 

 14 

0.03 % 

 0 

 1 
 0 
 0 

0.13 % 

0.02 % 
0.12 % 
0.05 % 

 1 
 29 

0.05 % 
3.70 % 

 0 
 0 

 1 
 2 

 0 
 0 

 0 

 0 
 0 
 0 

0.24 % 
0.01 % 

0.07 % 
0.11 % 

0.37 % 
0.07 % 

0.02 % 

0.12 % 
0.05 % 
0.22 % 

– 

 5 
– 
– 

– 

– 
– 
– 
– 

– 
– 

– 

– 

– 

– 
– 
 0 

– 
– 

– 
– 

– 
– 

– 
– 

– 

– 
– 
 0 

 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

Policy area 

Total 
appropriati
ons 
available 

Commitments made

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total

%

Appropriations carried over to 2016
%

Total

assigned 
revenue 

carry-
overs by 
decision 

Appropriations lapsing

EUR millions 

from final 
adopted 
budget 

from 
carry-
overs 

Assigned 
revenue 
(EFTA) 

Total 

% 

1 

2 

3 

4 

5=2+3+
4 

6=5/1 

7 

8 

9=7+
8 

10=9/1 

11 

12 

13 

30 

31 
32 
33 
34 
40 
90 
Total 

Pensions and related 
expenditure 
Language services 
Energy 
Justice 
Climate action 
Reserves 
Other institutions 

1 563 

1 563 

– 

 0 

1 563 

99.99 % 

 0 

– 

 0 

0.01 % 

 0 

– 

 454 
1 078 
 220 
 129 
 338 
4 087 
181 286 

 384 
 961 
 210 
 128 
– 
3 585 
161 317 

– 
– 
– 
– 
– 
 92 
12 175 

 40 
 19 
 2 
 1 
– 
 276 
3 698 

 425 
 980 
 212 
 128 
– 
3 954 
177 190 

93.55 % 
90.96 % 
96.29 % 
99.57 % 
0.00 % 
96.74 % 
97.74 % 

 29 
 95 
 7 
 0 
– 
 51 
3 119 

– 
– 
– 
– 
 219 
 2 
 656 

 29 
 95 
 7 
 0 
 219 
 53 
3 775 

6.43 % 
8.78 % 
3.36 % 
0.34 % 
64.84 % 
1.29 % 
2.08 % 

 0 
 3 
 1 
 0 
 119 
 80 
 301 

– 
– 
– 
– 
– 
 1 
 15 

– 

– 
– 
 0 
– 
– 
 0 
 5 

14=11
+12+
13 

15=14/1 

 0 

0.00 % 

 0 
 3 
 1 
 0 
 119 
 81 
 321 

0.02 % 
0.27 % 
0.36 % 
0.09 % 
35.16 % 
1.97 % 
0.18 % 

129 

 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

5.7.1. 

POLICY AREA: COMPARISON OF BUDGET AND ACTUAL PAYMENTS 

Initial 
adopted 
budget 

 459 

Amending 
budgets & 
transfers 
(43)

298

55 240

Policy area 

01  Economic and financial 

affairs 

02  Enterprise and industry 
03  Competition 
04  Employment, social affairs 

and inclusion 

05  Agriculture and rural 

development 

06  Mobility and transport 
07  Environment 
08  Research and innovation 
09  Communications 

networks, content and 
technology 
10  Direct research 
11  Maritime affairs and 

12 

fisheries 
Internal market and 
services 

13  Regional and urban policy
14  Taxation and customs 

union 

15  Education and culture 
16  Communication 
17  Health and consumer 

protection 

Foreign policy instruments

18  Home affairs 
19 
20  Trade 
21  Development and 
cooperation 
22  Enlargement 
23  Humanitarian aid and civil 

protection 
Fight against fraud 

24 
25  Commission's policy 

coordination and legal 
advice 
26  Commission's 
administration 

27  Budget 
28  Audit 
29  Statistics 
30 

Pensions and related 
expenditure 
Language services 

31 
32  Energy 
Justice 
33 
34  Climate action 
40  Reserves 
90  Other institutions 

Total 

2 266 
 98 
10 929 

54 942 

2 056 
 397 
5 987 
1 727 

 402 
1 007 

 115 

40 721 
 137 

2 661 
 240 
 567 

 972 
 578 
 124 
4 308 

 976 
 999 

 76 
 192 

 992 

 70 
 12 
 116 
1 567 

 389 
1 035 
 195 
 84 
 150 
3 667 
141 214 

Final 
adopted 
budget 
416

2 147
97
10 625

1 960
395
5 843
1 748

397
958

111

40 851
151

2 825
244
536

1 133
556
114
4 382

963
1 275

76
192

1 011

57
12
117
1 563

Additional 
appropri-  
ations* 
128

Total 
appropriations 
available 

 544 

388
13
226

3 267

179
30
1 246
270

536
17

16

278
12

624
25
35

45
56
6
238

17
150

8
25

324

15
1
27
0

2 534 
 110 
10 850 

58 508 

2 139 
 425 
7 089 
2 018 

 933 
 975 

 127 

41 130 
 163 

3 450 
 269 
 572 

1 178 
 612 
 121 
4 620 

 980 
1 426 

 83 
 218 

1 335 

 71 
 13 
 144 
1 563 

EUR millions 

Payments made

424

2 234
98
10 711

57 093

2 055
416
6 229
1 855

517
960

121

41 078
154

3 176
250
552

1 163
589
116
4 523

962
1 325

74
195

1 120

60
12
125
1 563

384
992
175
66
–
3 667
141 280

87
130
13
4
–
877
9 314

 471 
1 123 
 188 
 70 
– 
4 543 
150 595 

424
1 035
179
64
–
3 791
145 243

(120)
(1)
(305)

(96)
(3)
(144)
21

(5)
(49)

(4)

131
13

164
5
(31)

161
(22)
(10)
74

(13)
277

(0)
1

19

(14)
0
1
(4)

(5)
(43)
(20)
(18)
(150)
(0)
66

* Additional appropriations include appropriations carried over from previous year, assigned revenue and appropriations made available 
again following decommitments. 

130 

 
 
 
 
 
 
 
 
 
 
5.8.  POLICY AREA: IMPLEMENTATION OF PAYMENT APPROPRIATIONS 

EUR millions 

Annual accounts of the European Union 2015 

from final 
adopted 
budget 

from 
carry-
overs 

Payments made 
from 
assigned 
revenue 

Total 

% 

automatic 
carry-
overs 

carry-
overs by 
decision 

assig-  
ned 
revenue 

Total 

% 

from final 
adopted 
budget 

Appropriations carried over to 2016 

Appropriations lapsing 
assigned 
revenue 
(EFTA) 

from 
carry-
overs 

Total 

% 

Policy area 

Total 
appropri- 
ations 
available 
1 

2 

3 

4 

5=2+3+4 

6=5/1 

7 

8 

9 

10=7+
8+9 

11=10/1 

12 

13 

14 

Economic and financial 
affairs 
Enterprise and industry 
Competition 
Employment, social affairs 
and inclusion 
Agriculture and rural 
development 
Mobility and transport 
Environment 
Research and innovation 
Communications networks, 
content and technology 
Direct research 
Maritime affairs and fisheries 
Internal market and services 
Regional and urban policy 
Taxation and customs union 
Education and culture 
Communication 
Health and consumer 
protection 
Home affairs 
Foreign policy instruments 
Trade 
Development and 
cooperation 
Enlargement 
Humanitarian aid and civil 
protection 
Fight against fraud 
Commission's policy 
coordination and legal advice 
Commission's administration 
Budget 
Audit 
Statistics 
Pensions and related 
expenditure 
Language services 
Energy 
Justice 
Climate action 
Reserves 
Other institutions 

01 

02 
03 
04 

05 

06 
07 
08 
09 

10 
11 
12 
13 
14 
15 
16 
17 

18 
19 
20 
21 

22 
23 

24 
25 

26 
27 
28 
29 
30 

31 
32 
33 
34 
40 
90 
Total 

 544 

 410 

2 534 
 110 
10 850 

2 130 
 88 
10 602 

 6 

 17 
 7 
 47 

 8 

 87 
 3 
 61 

 424 

77.95 % 

2 234 
 98 
10 711 

88.13 % 
89.16 % 
98.72 % 

58 508 

54 778 

 875 

1 440 

57 093 

97.58 % 

2 139 
 425 
7 089 
2 018 

 933 
 975 
 127 
41 130 
 163 
3 450 
 269 
 572 

1 178 
 612 
 121 
4 620 

 980 
1 426 

 83 
 218 

1 335 
 71 
 13 
 144 
1 563 

 471 
1 123 
 188 
 70 
– 
4 543 
150 595 

1 947 
 390 
5 811 
1 736 

 357 
 955 
 107 
40 840 
 146 
2 812 
 233 
 526 

1 127 
 551 
 112 
4 357 

 951 
1 268 

 68 
 178 

 893 
 50 
 11 
 112 
1 563 

 371 
 985 
 171 
 61 
– 
3 129 
139 827 

 4 
 15 
 21 
 15 

 39 
 2 
 3 
 10 
 4 
 13 
 11 
 9 

 3 
 9 
 3 
 22 

 4 
 9 

 5 
 12 

 144 
 7 
 0 
 5 
– 

 17 
 5 
 3 
 3 
– 
 408 
1 759

 104 
 11 
 397 
 104 

 121 
 2 
 10 
 228 
 4 
 351 
 6 
 16 

 33 
 29 
 2 
 143 

 7 
 47 

 1 
 6 

 83 
 3 
 0 
 8 
 0 

 37 
 45 
 6 
 0 
– 
 254 
3 657

2 055 
 416 
6 229 
1 855 

 517 
 960 
 121 
41 078 
 154 
3 176 
 250 
 552 

1 163 
 589 
 116 
4 523 

 962 
1 325 

96.05 % 
97.99 % 
87.86 % 
91.91 % 

55.46 % 
98.39 % 
94.97 % 
99.87 % 
94.87 % 
92.07 % 
92.97 % 
96.48 % 

98.77 % 
96.24 % 
96.43 % 
97.89 % 

98.19 % 
92.94 % 

 74 
 195 

88.81 % 
89.85 % 

1 120 
 60 
 12 
 125 
1 563 

 424 
1 035 
 179 
 64 
– 
3 791 
145 243

83.88 % 
83.84 % 
90.64 % 
86.78 % 
99.99 % 

90.04 % 
92.22 % 
95.52 % 
91.31 % 
0.00 % 
83.43 % 
96.45 %

 6 

 15 
 8 
 13 

 21 

 4 
 4 
 30 
 10 

 39 
 3 
 3 
 11 
 5 
 13 
 11 
 9 

 5 
 3 
 2 
 24 

 6 
 6 

 6 
 14 

 118 
 7 
 1 
 5 
 0 

 14 
 5 
 4 
 4 
– 
 456 
886

– 

– 
– 
– 

 113 

 119 

21.81 % 

 282 
 3 
 113 

 296 
 11 
 126 

11.69 % 
10.31 % 
1.16 % 

 0 

 2 
 0 
 9 

 1 

 2 
 1 
 4 

 410 

 936 

1 366 

2.34 % 

 32 

 17 

– 
– 
– 
– 

– 
– 
– 
– 
– 
– 
– 
– 

– 
– 
– 
– 

– 
– 

 2 
 0 

– 
– 
– 
– 
– 

– 
– 
– 
– 
– 
 2 
 413 

 69 
 3 
 826 
 151 

 371 
 12 
 2 
 39 
 3 
 259 
 6 
 9 

 8 
 18 
 2 
 69 

 4 
 93 

 0 
 6 

 83 
 5 
 0 
 14 
 0 

 33 
 80 
 4 
 0 
– 
 80 
3 695

 73 
 7 
 856 
 161 

 411 
 15 
 6 
 50 
 8 
 272 
 17 
 19 

 13 
 21 
 4 
 93 

 10 
 100 

 7 
 20 

 200 
 11 
 1 
 18 
 0 

 46 
 84 
 7 
 4 
– 
 537 
4 994

3.42 % 
1.56 % 
12.08 % 
7.98 % 

44.03 % 
1.52 % 
4.64 % 
0.12 % 
5.02 % 
7.89 % 
6.42 % 
3.24 % 

1.11 % 
3.43 % 
3.31 % 
2.02 % 

1.07 % 
6.98 % 

8.94 % 
9.31 % 

15.01 % 
15.52 % 
8.50 % 
12.78 % 
0.01 % 

9.82 % 
7.51 % 
3.92 % 
6.02 % 
0.00 % 
11.83 % 
3.32 %

 9 
 1 
 2 
 1 

 0 
 1 
 0 
 0 
 0 
 0 
 0 
 1 

 1 
 2 
 0 
 0 

 6 
 1 

 0 
 0 

 0 
 0 
 0 
 0 
 0 

 0 
 2 
 0 
 1 
– 
 80 
154

 1 
 1 
 2 
 1 

 5 
 0 
 0 
 1 
 0 
 1 
 1 
 1 

 0 
 0 
 0 
 4 

 1 
 0 

 1 
 2 

 15 
 0 
 0 
 1 
– 

 1 
 1 
 1 
 0 
– 
 135 
202

131 

15=12+ 
13+14 

16=15/1 

 1 

0.24 % 

 4 
 1 
 13 

 48 

 11 
 2 
 4 
 2 

 5 
 1 
 1 
 2 
 0 
 1 
 2 
 2 

 1 
 2 
 0 
 4 

 7 
 1 

 2 
 2 

 15 
 0 
 0 
 1 
 0 

 1 
 3 
 1 
 2 
– 
 215 
 358 

0.17 % 
0.53 % 
0.12 % 

0.08 % 

0.53 % 
0.46 % 
0.06 % 
0.11 % 

0.51 % 
0.09 % 
0.40 % 
0.00 % 
0.12 % 
0.03 % 
0.61 % 
0.28 % 

0.12 % 
0.32 % 
0.26 % 
0.09 % 

0.74 % 
0.08 % 

2.25 % 
0.84 % 

1.11 % 
0.64 % 
0.85 % 
0.44 % 
0.00 % 

0.14 % 
0.27 % 
0.56 % 
2.68 % 
0.00 % 
4.74 % 
0.24 % 

– 

 0 
– 
– 

– 

 1 
– 
– 
– 

– 
– 
– 
– 
– 
– 
– 
 0 

– 
– 
– 
– 

– 
– 

– 
– 

– 
– 
– 
 0 
– 

– 
– 
 0 
– 
– 
– 
2

 
 
 
 
 
 
 
 
 
 
 
 
  
5.9.  POLICY AREA: MOVEMENTS IN COMMITMENTS OUTSTANDING 

Annual accounts of the European Union 2015 

Policy area 

Commitments outstanding at the end of previous year

Commitments of the year

Commitments 
carried forward 
from previous 
year 

Decommitments/
Revaluations/  
Cancellations 

Payments

Commitments 
outstanding at 
year-end 

Commitments 
made during 
the year 

Payments

Cancellation of 
commitments 
which cannot 
be carried over 

Commitments 
outstanding at 
year-end 

01 
02 
03 
04 

05 

06 
07 
08 
09 

10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 

24 
25 

26 
27 
28 
29 
30 

31 
32 
33 
34 
40 
90 
Total 

Economic and financial affairs 
Enterprise and industry 
Competition 
Employment, social affairs and 
inclusion 
Agriculture and rural 
development 
Mobility and transport 
Environment 
Research and innovation 
Communications networks, 
content and technology 
Direct research 
Maritime affairs and fisheries 
Internal market and services 
Regional and urban policy 
Taxation and customs union 
Education and culture 
Communication 
Health and consumer protection 
Home affairs 
Foreign policy instruments 
Trade 
Development and cooperation 
Enlargement 
Humanitarian aid and civil 
protection 
Fight against fraud 
Commission's policy 
coordination and legal advice 
Commission's administration 
Budget 
Audit 
Statistics 
Pensions and related 
expenditure 
Language services 
Energy 
Justice 
Climate action 
Reserves 
Other institutions 

 667 
2 204 
 7 
26 124 

17 308 

5 647 
1 093 
14 826 
3 305 

 208 
1 571 
 21 
84 237 
 122 
2 879 
 110 
 535 
1 586 
 862 
 22 
16 379 
3 669 
 671 

 31 
 14 

 201 
 7 
 0 
 105 
– 

 18 
4 416 
 181 
 105 
– 
 469 
189 600 

(14)
(50)
(1)
(215)

(282)

(393)
(1)
(84)
(36)

(21)
(244)
(3)
(1 085)
(8)
(52)
(7)
(68)
(147)
(73)
(1)
(387)
(53)
(3)

(5)
(2)

(17)
(0)
(0)
(6)
–

(1)
(509)
(22)
(1)
–
(67)
(3 855)

(140)
(1 219)
(7)
(9 635)

(8 054)

(1 642)
(292)
(4 535)
(1 295)

(131)
(644)
(15)
(37 414)
(76)
(1 312)
(83)
(262)
(403)
(333)
(15)
(3 772)
(857)
(400)

(18)
(12)

(171)
(7)
(0)
(45)
–

(17)
(914)
(66)
(40)
–
(401)
(74 227)

513
935
–
16 274

8 971

3 613
800
10 207
1 975

56
682
3
45 738
39
1 515
21
206
1 036
456
6
12 220
2 759
268

8
–

13
–
–
54
–

1 654
2 704
 100
18 069

(284)
(1 015)
(91)
(1 076)

65 492

(49 039)

2 683
 443
6 674
1 833

 504
1 834
 126
50 599
 165
3 249
 253
 622
1 837
 706
 116
5 596
1 573
1 484

79
 199

1 121
60
12
 141
1 563

(413)
(125)
(1 693)
(560)

(387)
(315)
(105)
(3 664)
(79)
(1 864)
(167)
(290)
(760)
(256)
(101)
(751)
(105)
(925)

(56)
(184)

(948)
(53)
(12)
(80)
(1 563)

–
2 993
94
64
–
0
111 518

132 

 425
 980
 212
 128
–
3 954
177 190

(408)
(121)
(114)
(25)
–
(3 389)
(71 016)

–
(2)
–
(0)

(0)

–
–
(2)
(0)

(0)
(0)
–
(0)
–
(0)
(0)
–
–
(0)
(0)
(0)
(0)
–

(0)
(0)

(0)
–
–
(0)
(0)

–
(0)
–
–
–
5
0

EUR millions 

Total 
commitments 
outstanding at 
the end of the 
year 

1 883 
2 623 
 9 
33 266 

25 424 

5 883 
1 118 
15 185 
3 247 

 174 
2 201 
 23 
92 673 
 125 
2 901 
 107 
 538 
2 113 
 905 
 20 
17 066 
4 227 
 827 

 31 
 15 

 185 
 7 
 1 
 115 
– 

1 370
1 688
9
16 993

16 453

2 270
318
4 978
1 273

118
1 519
21
46 935
86
1 386
86
333
1 076
449
14
4 845
1 468
559

23
15

172
7
1
61
–

17
859
99
104
–
570
106 175

 17 
3 853 
 193 
 168 
– 
 570 
217 692 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.10.   POLICY AREA: BREAKDOWN OF COMMITMENTS OUTSTANDING BY YEAR OF ORIGIN 

Annual accounts of the European Union 2015 

01 
02 
03 
04 

05 

06 
07 
08 
09 

10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 

24 
25 

26 
27 
28 
29 
30 

31 
32 
33 
34 
40 
90 
Total 

Economic and financial affairs 
Enterprise and industry 
Competition 
Employment, social affairs and 
inclusion 
Agriculture and rural 
development 
Mobility and transport 
Environment 
Research and innovation 
Communications networks, 
content and technology 
Direct research 
Maritime affairs and fisheries 
Internal market and services 
Regional and urban policy 
Taxation and customs union 
Education and culture 
Communication 
Health and consumer protection 
Home affairs 
Foreign policy instruments 
Trade 
Development and cooperation 
Enlargement 
Humanitarian aid and civil 
protection 
Fight against fraud 
Commission's policy 
coordination and legal advice 
Commission's administration 
Budget 
Audit 
Statistics 
Pensions and related 
expenditure 
Language services 
Energy 
Justice 
Climate action 
Reserves 
Other institutions 

< 2009 
 14 
 11 
– 
 515 

 75 

 76 
 49 
 70 
 17 

 9 
 99 
– 
1 365 
– 
 56 
 0 
 6 
 14 
 7 
– 
 555 
 140 
 9 

 0 
– 

– 
– 
– 
 0 
– 

– 
 41 
– 
– 
– 
– 
3 130 

2009
–
20
–
36

0

44
61
87
20

1
–
–
3
–
32
0
11
28
5
–
448
55
13

0
–

–
–
–
0
–

–
467
1
–
–
–
1 333

2010
0
34
–
26

–

85
74
283
40

3
8
–
216
0
43
0
9
50
14
0
706
138
25

–
–

–
–
–
1
–

–
717
1
–
–
–
2 473

2011
60
60
–
448

3

402
102
584
82

2
25
–
1 020
1
109
1
14
110
17
0
1 108
252
25

–
–

0
–
–
1
–

–
238
5
–
–
–
4 671

133 

2012
 178
 184
–
1 662

 206

 695
 136
2 005
 284

3
47
0
5 918
2
 199
0
15
 245
76
0
2 304
 411
24

0
–

–
–
–
4
–

–
 324
9
1
–
–
14 931

2013
244
304
–
6 383

6 830

700
177
3 160
551

15
454
0
23 611
4
461
2
39
491
96
2
3 246
616
30

2
–

7
–
–
12
–

–
469
22
3
–
–
47 931

2014
16
323
0
7 203

1 856

1 612
202
4 017
980

24
49
3
13 606
31
615
17
112
99
242
3
3 853
1 146
142

5
0

6
–
–
35
0

0
737
57
60
–
–
37 049

2015
1 370
1 688
9
16 993

16 453

2 270
318
4 978
1 273

118
1 519
21
46 935
86
1 386
86
333
1 076
449
14
4 845
1 468
559

23
15

172
7
1
61
–

EUR millions 
Total 
1 883 
2 623 
 9 
33 266 

25 424 

5 883 
1 118 
15 185 
3 247 

 174 
2 201 
 23 
92 673 
 125 
2 901 
 107 
 538 
2 113 
 905 
 20 
17 066 
4 227 
 827 

 31 
 15 

 185 
 7 
 1 
 115 
– 

17
859
99
104
–
570
106 175

 17 
3 853 
 193 
 168 
– 
 570 
217 692 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

5.11.  IMPLEMENTATION OF 2015 EXPENDITURE 

2015 was the second year of the new programming period 2014-2020. 

Commitments: 

initial  adopted  budget 

The 
EUR 144 806 million. 

for  all 

institutions  excluding  Special 

instruments  was  set  at 

This budget was from the outset subject to significant amendments following the low implementation of 
commitments  in  2014,  related  to  the  late  adoption  of  the  operational  programmes  for  the  funds  under 
shared  management  at  the  start  of  the  new  programming  period.  Carryover  to  2015  amounted  to 
EUR 12 billion and the re-programming of the 2014 unused commitment to EUR 16 billion. 

Reinforced commitments in 2015 brought the outstanding commitments back to the level before 2014 (to 
EUR 217 billion). So the decrease observed in 2014 was temporary as foreseen. 

In 2015 the newly created European Fund for Strategic Investments (EFSI) was added to heading 1a and 
provided with EUR 1 360 million (including EUR 10 million for the European Investment Advisory Hub) of 
commitment  appropriations  (reallocated  from  the  Connecting  Europe  Facility,  Horizon  2020  and  the 
International  Thermonuclear  Experimental  Reactor  (ITER)  programme  as  stipulated in  amending  budget 
2/2015), all of which was fully committed. 

Adjustments of commitments outside re-programming were mostly related to the migration and refugees 
flows:  reinforcements  to  the  FRONTEX  agency,  the  Asylum,  Migration  and  Integration  Fund  (AMIF),  the 
Internal  Security  Fund  (ISF)  and  European  Neighbourhood  Instrument  (ENI)  and  Humanitarian  aid  for 
Syria and the surrounding countries. 

The final adopted budget for commitments excluding Special instruments totalled EUR 161 808 million, of 
which EUR 161 191 million were committed (implementation rate of 99.6 %). 

EUR 202 million  unused  appropriations  and  the  un-mobilised  reserve  of  EUR 119 million  for  European 
Globalisation Adjustment Fund lapsed by the end of 2015. 

 Payments: 

The initial adopted budget, excluding Special Instruments, was set at EUR 140 862 million (an increase of 
1.6 %  compared  to  the  2014  final  adopted  budget).  Initial  payment  appropriations  corresponded  to 
1.01 % of the EU GNI. They were reinforced by EUR 66 million during the year, as new needs related to 
the migration and refugee crisis were mainly covered by redeployments. 

The carryover from 2014 was EUR 1 960 million.  

The  final  adopted  budget  came  to  EUR 141 280 million  of  which  EUR 139 827 million  was  paid  in  2015 
(99 %).  

In total, EUR 358 million, including EUR 0.5 million from the reserves lapsed by the end of 2015.   

A  more  detailed  analysis  of  budgetary  adjustments,  their  relevant  context,  their  justification  and  their 
impact  is  presented  in  Commission's  Report  on  Budgetary  and  Financial  Management  2015,  Part  A 
"Overview at budget level" and Part B dealing with each heading of the multi-annual financial framework. 

134 

 
 
 
6. 

IMPLEMENTATION OF THE INSTITUTIONS AND AGENCIES BUDGET 

Annual accounts of the European Union 2015 

6.1.  INSTITUTIONS: SUMMARY OF THE IMPLEMENTATION OF BUDGET REVENUE 

Income appropriations 

Entitlements established 

Revenue 

Institution 

Initial 
adopted 
budget 

Final 
adopted 
budget 

Current 
year 

Carried 
over 

Total 

On 
entitlements 
of current 
year 

On 
entitlements 
carried over 

European Parliament 
European Council and Council 
Commission 
Court of Justice 
Court of Auditors 
Economic and Social Committee 
Committee of the Regions 
Ombudsman 
European Data Protection Supervisor 
European External Action Service 
Total 

 149
 57
140 885
 45
 20
 11
 8
 1
 1
 38
141 214 

149
57
140 951
45
20
11
8
1
1
38
141 280 

176
73
139 403
50
19
15
10
1
1
251
139 999 

21
4
13 743
0
0
–
–
–
–
0
13 768 

198
77
153 147
50
19
15
10
1
1
251
153 768 

173
71
139 010
49
19
15
10
1
1
250
139 599 

3
3
7 018
0
0
0
0
0
0
0
7 024 

Receipts 
as 

% of 
budget 

118.49 %
129.14 %
103.60 %
110.39 %
96.20 %
138.57 %
127.90 %
101.02 %
102.41 %
661.85 %
103.78 % 

Total 

176
74
146 027
50
19
15
10
1
1
250
146 624 

EUR millions 

Outstanding 

 21 
 3 
7 119 
 0 
 0 
– 
 0 
– 
– 
 1 
7 144 

The  consolidated  reports  on  the  implementation  of  the  general  budget  of  the  EU  include,  as  in  previous  years,  the  budget  implementation  of  all  Institutions 
since within the EU budget a separate budget for each Institution is established. Agencies do not have a separate budget inside the EU budget and they are 
partially financed by a Commission budget subsidy.  

Concerning  the  EEAS,  it  should  be  noted  that,  in  addition  to  its  own  budget,  it  also  receives  contributions  from  the  Commission  of  EUR 138 million  (2014: 
EUR 208 million) and the EDF of EUR 61 million (2014: EUR 56 million). These budget credits are put at the disposal of the EEAS (as assigned revenue) so as to 
cover primarily the costs of Commission staff working in the EU delegations, these delegations being administratively managed by the EEAS. 

135 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.2.  INSTITUTIONS: IMPLEMENTATION OF COMMITMENT AND PAYMENT 

Annual accounts of the European Union 2015 

APPROPRIATIONS 

Commitment appropriations 

Institution 

Commitments made

from final 
adopted 
budget 

from
carry-
overs 

from
assigned 
revenue 

Total 
appropri-  
ations 
available 

Total

%

1 

2 

1 929 

1 779 

 589 

 500 

3

86

3

177 199 
 359 
 133 
 134 

157 732 
 354 
 131 
 124 

12 083
–
–
–

 91 

 10 
 9 

 87 

 10 
 8 

 833 

 592 

–

–
–

3

4

5=2+3+4

6=5/1

34

25

3 422
1
0
4

2

–
–

1 899

98.45 %

528

89.53 %

173 236
355
131
128

89

10
8

97.76 %
98.83 %
98.62 %
95.98 %

98.17 %

92.32 %
95.60 %

7

14

20

3 068
1
0
0

0

–
–

9=7+8

10=9/1

14

20

3 723
1
0
0

0

–
–

0.72 %

3.36 %

2.10 %
0.23 %
0.06 %
0.08 %

0.02 %

0.00 %
0.00 %

–

–

 654
–
–
–

–

–
–

210

806

96.72 %

16

 2

18

2.16 %

European 
Parliament 
European Council 
and Council 
Commission 
Court of Justice 
Court of Auditors 
Economic and 
Social Committee 
Committee of 
Regions 
Ombudsman 
European Data-
protection 
Supervisor 
European External 
Action Service 
Total 

assig-
ned 
revenue 
(EFTA) 

13

–

–

5
–
–
–

–

–
–

–

5

Total 

%

14=11+ 
12+13 
 16 

15=14/1

0.83 %

 42 

7.10 %

 240 
 3 
 2 
 5 

 2 

 1 
 0 

0.14 %
0.94 %
1.32 %
3.93 %

1.81 %

7.68 %
4.40 %

 9 

1.13 %

 321 

0.18 %

11

16

42

221
3
2
5

2

1
0

9

12

–

0

15
–
–
–

–

–
–

1

Appropriations carried over to 2016
from
assign-
ned 
revenue 

Total

carry-
overs 
by 
deci-
sion 
8

Appropriations lapsing 

%

from final
adopted 
budget 

from
carry-
overs 

181 286 

161 317 

12 175

3 698

177 190

97.74 %

3 119

 656

3 775 

2.08 %

301

15

136 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

Payment appropriations 

Institution 

Total 
appropri- 
ations 
available 
1 

from final 
adopted 
budget 

from carry-
overs 

Payments made
from assig- 
ned 
revenue 

Total 

% 

automatic 
carry-overs 

carry-overs 
by decision 

from 
assigned 
revenue 

Total 

% 

from final 
adopted 
budget 

Appropriations carried over to 2016

2 

3 

4 

5=2+3+4 

6=5/1 

7 

8 

9 

10=7+8+9 

11=10/1 

12 

2 207 

1 489 

 253 

 639 

 454 

 48 

 29 

 24 

1 771 

80.24 % 

 289 

 527 

82.43 % 

 46 

– 

– 

 19 

 20 

 309 

13.99 % 

 16 

 111 

 65 

10.25 % 

 42 

 5 

146 051 

136 698 

1 351 

3 404 

141 453 

 376 

 141 

 142 

 99 

 11 

 10 

 334 

 122 

 114 

 79 

 9 

 8 

 15 

 7 

 6 

 6 

 0 

 0 

 1 

 0 

 3 

 2 

– 

– 

 350 

 129 

 124 

96.85 % 

93.10 % 

91.70 % 

87.24 % 

 86 

87.37 % 

 9 

 8 

86.37 % 

82.61 % 

 430 

 20 

 9 

 9 

 9 

 1 

 1 

 412 

3 615 

4 456 

– 

– 

– 

– 

– 

– 

 1 

 0 

 1 

 0 

– 

– 

 21 

 9 

 11 

 9 

 1 

 1 

3.05 % 

5.49 % 

6.62 % 

7.48 % 

8.97 % 

5.91 % 

8.24 % 

 74 

 66 

 3 

 2 

 5 

 2 

 1 

 0 

 2 

 1 

 2 

 2 

 0 

 0 

EUR millions 

Appropriations lapsing 
Total 
assig- 
from 
ned 
carry-
revenue 
overs 
(EFTA) 
14 

13 

15=12+
13+14 
 127 

% 

16=15/1

5.77 %

– 

– 

 2 

– 

– 

– 

– 

– 

– 

 47 

7.32 %

 142 

 5 

 2 

 7 

 4 

 1 

 1 

0.10 %

1.41 %

1.68 %

5.28 %

3.66 %

7.72 %

9.15 %

European 
Parliament 
European Council 
and Council 
Commission 
Court of Justice 
Court of Auditors 
Economic and 
Social Committee 
Committee of 
Regions 
Ombudsman 
European Data-
protection 
Supervisor 
European External 
Action Service 
Total 

 920 

 520 

 73 

 194 

 787 

85.53 % 

 72 

 2 

 38 

 112 

12.20 % 

 9 

 12 

– 

 21 

2.27 %

150 595 

139 827 

1 759 

3 657 

145 243 

96.45 % 

 886 

 413 

3 695 

4 994 

3.32 % 

 154 

 202 

 2 

358 

0.24 %

137 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

6.3.  AGENCIES INCOME: BUDGET FORECASTS, 
ENTITLEMENTS AND AMOUNTS RECEIVED 

Entitlements 
established 

Amounts 
received 

Outstanding 

Funding 
Commission 
Policy Area 

Agency 

European Agency for the Cooperation of 
Energy Regulators 
European Asylum Support Office 
European Aviation Safety Agency 
Frontex 
European Centre for the Development 
of Vocational Training  
European Police College 
European Chemicals Agency 
European Centre for Disease Prevention 
and Control 
European Monitoring Centre for Drugs 
and Drug Addiction  
European Banking Authority 
European Insurance and Occupational 
Pensions Authority 
European Environment Agency 
European Police office 
European Securities and Markets 
Authority 
Community Fisheries Control Agency 
European Food Safety Authority 
European Institute for gender equality 
Galileo Supervisory Authority 
Fusion for energy ITER 
The European Union's Judicial 
Cooperation Unit (Eurojust)  
eu.LISA 
European Maritime Safety Agency 
Office for Harmonisation in the Internal 
Market 
European Medicines Agency 
European Network and Information 
Security Agency 
Office for the body of European 
Regulators for Electronic 
Communications BEREC 
European Union Agency for 
Fundamental Rights  
European Railway Safety Agency 
European Agency for Safety and Health 
at Work 
European Institute of Innovation and 
Technology  
Translations Centre for the bodies of 
the EU 
European Training Foundation 
Community Plant Variety Office  
European foundation for improvement 
of living & working conditions 
Education, Audiovisual and Culture 
Executive Agency 
Executive Agency for Competitiveness 
and Innovation 
European Research Council Executive 
Agency 
Research Executive Agency 
Executive Agency for Health and 
Consumers 
European Transport Network Executive 
Agency 
Total 

Final 
adopted 
budget 
 11 

 16 
 185 
 143 
 18 

 8 
 34 
 58 

 18 

 33 
 20 

 42 
 95 
 37 

 9 
 79 
 8 
 23 
 414 
 34 

 68 
 65 
 384 

 308 
 10 

 4 

 22 

 26 
 15 

 11 

 14 
 150 
 147 
 18 

 9 
 38 
 59 

 19 

 34 
 21 

 53 
 103 
 37 

 9 
 80 
 8 
 361 
 493 
 34 

 74 
 65 
 216 

 350 
 10 

 4 

 22 

 27 
 16 

 11 

 14 
 150 
 147 
 17 

 9 
 38 
 59 

 19 

 34 
 21 

 43 
 103 
 37 

 9 
 80 
 8 
 361 
 493 
 34 

 71 
 65 
 216 

 304 
 10 

 4 

 22 

 27 
 16 

 243 

 229 

 229 

 50 

 20 
 15 
 21 

 47 

 36 

 40 

 55 
 7 

 18 

 42 

 21 
 13 
 21 

 47 

 36 

 40 

 55 
 7 

 18 

 42 

 21 
 13 
 21 

 47 

 36 

 40 

 55 
 7 

 18 

2 740 

3 007 

2 946 

 61 

138 

– 

– 
 0 
– 
 2 

 0 
 0 
 0 

– 

 0 
 0 

 10 
 0 
– 

– 
 0 
– 
 0 
 0 
 0 

 2 
 0 
 0 

 45 
– 

– 

– 

 0 
– 

 0 

 0 

 0 
– 
 0 

– 

– 

 0 

 0 
– 

– 

06 

18 
06 
18 
15 

18 
02 
17 

18 

12 
12 

07 
18 
12 

11 
17 
04 
06 
08 
33 

18 
06 
12 

02 
09 

09 

18 

06 
04 

15 

15 

15 
17 
04 

15 

06 

08 

08 
17 

06 

 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

Type of revenue 

Commission subsidy 
Fee income 
Other income 
Total 

Final 
adopted 
budget 
1 715 
 588 
 438 
2 740 

Entitle- 
ments 
established 
1 700 
 647 
 660 
3 007 

Amounts 
received 

1 698 
 602 
 646 
2 946 

EUR millions 
Outstanding 

 2 
 45 
 14 
 61 

139 

 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

6.4.  COMMITMENT & PAYMENT APPROPRIATIONS BY 

AGENCY 

Agency 

European Agency for the Cooperation 
of Energy Regulators 
European Asylum Support Office 
European Aviation Safety Agency 
Frontex 
European Centre for the Development 
of Vocational Training  
European Police College 
European Chemicals Agency 
European Centre for Disease 
Prevention and Control 
European Monitoring Centre for Drugs 
and Drug Addiction  
European Banking Authority 
European Insurance and Occupational 
Pensions Authority 
European Environment Agency 
European Police office 
European Securities and Markets 
Authority 
Community Fisheries Control Agency 
European Food Safety Authority 
European Institute for gender equality 
Galileo Supervisory Authority 
Fusion for energy ITER 
The European Union's Judicial 
Cooperation Unit (Eurojust)  
eu.LISA 
European Maritime Safety Agency 
Office for Harmonisation in the 
Internal Market 
European Medicines Agency 
European Network and Information 
Security Agency 
Office for the body of European 
Regulators for Electronic 
Communications BEREC 
European Union Agency for 
Fundamental Rights  
European Railway Safety Agency 
European Agency for Safety and 
Health at Work 
European Institute of Innovation and 
Technology  
Translations Centre for the bodies of 
the EU 
European Training Foundation 
Community Plant Variety Office  
European foundation for improvement 
of living & working conditions 
Education, Audiovisual and Culture 
Executive Agency 
Executive Agency for Competitiveness 
and Innovation 
European Research Council Executive 
Agency 
Research Executive Agency 
Executive Agency for Health and 
Consumers 
European Transport Network Executive 
Agency 
Total 

Commitment appropriations 
Carried 
to 2016 

Total 
appropr. 
available 

Com- 
mit-
ments 
made 
 11 

EUR millions 
Payment appropriations 

Total 
appropr. 
available  

Pay- 
ments 
made 

Carried 
to 2016 

 14 

 11 

 18 
 213 
 180 
 20 

 10 
 126 
 71 

 20 

 39 
 26 

 73 
 109 
 43 

 10 
 87 
 10 
 616 
 531 
 38 

 87 
 70 
 424 

 349 
 11 

 13 
 127 
 125 
 17 

 8 
 111 
 55 

 18 

 35 
 22 

 55 
 93 
 35 

 9 
 79 
 7 
 211 
 524 
 34 

 64 
 58 
 231 

 291 
 11 

 5 

 4 

 28 

 30 
 21 

 22 

 27 
 15 

 247 

 224 

 54 

 22 
 15 
 26 

 52 

 40 

 42 

 59 
 9 

 20 

 43 

 21 
 14 
 23 

 46 

 34 

 39 

 54 
 7 

 18 

 2 

 2 
 84 
 50 
 2 

 2 
 13 
 11 

 1 

 3 
 3 

 17 
 15 
 7 

 1 
 8 
 3 
 404 
 6 
 4 

 22 
 10 
 29 

 43 
 1 

 1 

 6 

 3 
 5 

 1 

 5 

 1 
 1 
 3 

 5 

 5 

 2 

 3 
 1 

 2 

 0 

 1 
 65 
 1 
 0 

 0 
 0 
 0 

 1 

– 
 0 

 10 
 3 
 2 

– 
 0 
 0 
1 438 
 0 
 0 

 1 
 6 
– 

 6 
– 

– 

 0 

 0 
 1 

 0 

– 

 0 
– 
 0 

– 

– 

– 

– 
– 

– 

 11 

 17 
 208 
 152 
 19 

 9 
 115 
 60 

 19 

 33 
 20 

 68 
 103 
 37 

 9 
 81 
 8 
1 582 
 792 
 34 

 82 
 70 
 424 

 308 
 10 

 16 
 140 
 151 
 19 

 9 
 113 
 56 

 18 

 33 
 20 

 58 
 100 
 35 

 9 
 81 
 8 
 144 
 791 
 34 

 81 
 64 
 266 

 290 
 10 

 4 

 4 

 22 

 27 
 17 

 22 

 26 
 15 

 276 

 251 

 50 

 21 
 17 
 22 

 47 

 36 

 40 

 55 
 7 

 18 

 44 

 21 
 15 
 22 

 46 

 36 

 39 

 54 
 7 

 18 

4 930 

3 175 

1 538 

3 864 

2 835 

 787 

140 

 
 
 
 
 
 
 
 
Annual accounts of the European Union 2015 

Commitment 
appropriations 

EUR millions 
Payment appropriations 

Total 
appropr. 
available  

 975 
 412 
3 543 
4 930 

Com- 
mit-
ments 
made 
 956 
 392 
1 827 
3 175 

Carried 
to 2016 

Total 
appropr. 
available  

Pay- 
ments 
made 

Carried 
to 2016 

 1 
 2 
1 535 
1 538 

 991 
 467 
2 406 
3 864 

 953 
 356 
1 526 
2 835 

 18 
 85 
 685 
 787 

Type of expenditure 

Staff 
Administrative expenses 
Operational expenses 
Total 

6.5.  BUDGET RESULT INCLUDING AGENCIES 

European 
Union 

Agencies 

Revenue for the financial year 
Payments against current year's 
budget appropriations 
Payments against assigned revenue 
appropriations 
Payment appropriations carried over to  
year N+1 
Cancellation of unused appropriations 
carried over from year N-1 
Evolution of assigned revenue 
Exchange differences for the year 
Budget result 2015 

146 624 
(139 827) 

2 946 
(2 233) 

(3 657) 

 (375) 

(1 299) 

 (787) 

 29 

 (704) 
 182 
1 347 

 268 

 145 
 2 
 (34) 

Elimination 
of 
subsidies 
to agencies 
(1 698) 
1 698 

– 

– 

– 

– 
– 
– 

EUR millions 
Total 

147 872 
(140 363) 

(4 032) 

(2 086) 

 297 

 (559) 
 184 
1 313 

In order to provide all relevant budgetary data for the Agencies, the consolidated annual accounts include 
separate reports on the implementation of the individual budgets of the traditional agencies consolidated. 

141