DRAFT AMENDING BUDGET No 6 TO THE GENERAL BUDGET 2017 Reduction of payment and commitment appropriations in line with updated forecasts of expenditure and update of revenue (own resources and fines)
Date: 2017-10-09
Institutions: Directorate-General for Budget, European Commission
Subjects: EU expenditure, amending budget, budgetary resources, commitment of expenditure, draft budget (EU), financial year, general budget (EU), own resources

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 9.10.2017 COM(2017) 597 final   DRAFT AMENDING BUDGET No 6 TO THE GENERAL BUDGET 2017 Reduction of payment and commitment appropriations in line with updated forecasts of expenditure and update of revenue (own resources and fines)  
 
 
Having regard to: 

– 

– 

– 

– 

– 

– 

– 

– 

the Treaty on the Functioning of the European Union, and in particular  Article 314 
thereof,  in  conjunction  with  the  Treaty  establishing  the  European  Atomic  Energy 
Community, and in particular Article 106a thereof, 

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

the general budget of the European Union for the financial year 2017, as adopted on 
1 December 20162, 
the amending budget No 1/20173, adopted on 5 April 2017, 
the amending budget No 2/20174, adopted on 4 July 2017, 
the amending budget No 3/20175, adopted on 13 September 2017, 
the amending budget No 4/20176, adopted on 13 September 2017, 
the draft amending budget No 5/20177, presented on 28 July 2017, 

The European Commission hereby presents draft amending budget No 6 to the 2017 budget to 
the European Parliament and to the Council. 

CHANGES  TO  THE  STATEMENT  OF  REVENUE  AND  EXPENDITURE  BY 
SECTION 

The  changes  to  the  statement  of  revenue  and  expenditure  by  section  are  available  on  EUR-
Lex (http://eur-lex.europa.eu/budget/www/index-en.htm). An English version of the changes 
to this statement is attached for information as a budgetary annex. 

1 
2 
3  
4  
5  
6  
7  

OJ L 298, 26.10.2012, p. 1. 
OJ L 51, 28.2.2017. 
OJ L 136, 24.5.2017. 
OJ L 227, 1.9.2017. 
COM(2017) 288, 30.5.2017 (awaiting publication in the Official Journal). 
COM(2017) 541, 26.6.2017 (awaiting publication in the Official Journal). 
COM(2017) 485, 28.7.2017. 

2 

 
 
                                                 
TABLE OF CONTENTS 

1. 

2. 

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

DECREASE OF PAYMENT AND COMMITMENT APPROPRIATIONS .................................... 4 

2.1  HEADING 1B – ECONOMIC, SOCIAL AND TERRITORIAL COHESION ........................................................ 4 
2.2  HEADING 2 – SUSTAINABLE GROWTH: NATURAL RESOURCES .............................................................. 5 
2.3  HEADING 3 – SECURITY AND CITIZENSHIP ............................................................................................. 7 
2.4  HEADING 4 – GLOBAL EUROPE ............................................................................................................... 8 
2.5  EUROPEAN UNION SOLIDARITY FUND (EUSF) ....................................................................................... 9 

3. 

UPDATE OF REVENUE ....................................................................................................................... 9 

3.1  OVERALL IMPACT OF DAB 6/2017 ON THE DISTRIBUTION OF TOTAL OWN RESOURCES PAYMENTS 

BETWEEN MEMBER STATES ..................................................................................................................... 9 
3.2  REVISION OF THE FORECAST OF TOR, VAT AND GNI BASES .............................................................. 10 
3.3  2016 AND 2013 UK CORRECTION ........................................................................................................... 11 
3.4  FINES ...................................................................................................................................................... 15 

4. 

SUMMARY TABLE BY MFF HEADING ......................................................................................... 16 

3 

 
 
 
1. 

INTRODUCTION 

The  purpose  of  Draft  Amending  Budget  (DAB)  No 6  for  the  year  2017  is  to  update  both  the 
expenditure and the revenue sides of the budget to take account of the latest developments: 

– 

on the expenditure side,  

– 

– 

– 

after  taking  into  account  the  redeployments  proposed  in  the  so-called  "global 
transfer"  (DEC  20/2017),  to  decrease  the  level  of  payment  appropriations  of 
budget lines mainly for headings 1b 'Economic, social and territorial cohesion', 2 
'Sustainable  growth  –  natural  resources',  3  'Security  and  Citizenship'  as  well  as 
for 4 'Global Europe';  

to  release  commitment  appropriations  of  budget  lines  for  heading  2  'Sustainable 
growth – natural resources'; 

to  release  commitment  and  payment  appropriations  relating  to  the  payment  of 
advances for the European Union Solidarity Fund (EUSF) which will no longer be 
needed in 2017; 

– 

on the revenue side, 

– 

– 

to revise the forecast of Traditional Own Resources (i.e. customs duties and sugar 
sector levies), value-added tax (VAT) and gross national income (GNI) bases, and 
to  budget  the  relevant  UK  corrections  and  their  financing,  which  all  affect  the 
distribution of own resources contributions from Member States to the EU budget; 

to  enter  into  the  EU  budget  the  fines  decided  by  the  Commission,  for  which  all 
legal  remedies  were  exhausted  and  which  therefore  became  definitive  in  the 
course  of  2017,  reducing  accordingly  the  own  resources  contributions  from 
Member States to the EU budget. 

2. 

DECREASE OF PAYMENT AND COMMITMENT APPROPRIATIONS 

The Commission proposes to adjust the level of payment appropriations for certain budget lines in 
order to align them more closely to the latest estimates of needs and working on the assumption 
that  the  rebalancing  of  payment  appropriations  between  budget  lines  requested  separately  by  the 
Commission  in  the  so-called  "global  transfer"  (DEC  20/2017)  will  be  accepted  by  the  European 
Parliament and the Council.  

The  overall  reduction  (EUR 7 719,7 million)  in  the  level  of  payment  appropriations  requested  in 
this  DAB  mainly  concerns  heading  1b  and  to  a  lesser  extent  headings  2,  3,  4  and  the  European 
Union Solidarity Fund ("EUSF"). 

Heading 1b – Economic, social and territorial cohesion 

2.1 
The  Commission  proposes  a  decrease  of  EUR 5,9 billion8  in  payment  appropriations  for  the 
European  Structural  and  Investment  funds  (ESIF)  under  heading  1b.  This  reduction  results  from 
updated forecasts indicating payment needs lower than those originally planned in the 2017 budget 
for the 2014-2020 programming period. 

8  

EUR 5 890,7 million is included in this DAB and another EUR 14,3 million were used in the global transfer 
as a balancing item. 

4 

 
 
 
                                                 
All  operational  programmes  for  this  period  were  adopted  before  the  end  of  2015.  However,  the 
overall  level  of  interim  payments  in  2017  for  these  programmes  will  be  lower  than  initially 
budgeted, as confirmed by the latest Member States forecasts (July 2017) which have decreased by 
around EUR 6 billion (-16 %) relative to the forecasts of January 2017. The Commission's analysis 
of forecasts provided by Member States also includes adjustments in view of recurrent historical 
over-estimation. 

These adjustments were made with a prudent approach and taking account of the persistent error 
rate  of  the  Member  States'  forecast  observed  in  recent  years.  Furthermore,  additional  elements 
have been considered such as the lack of regulatory incentives to accelerate the claim submission 
due to the more relaxed automatic decommitment rules ( low 'N+3' pressure) and the recurrence of 
a "normal" backlog of payment applications arriving too late to be paid within the year. 

Implementation  delays  continue  to  be  observed  in  relation  to  the  2014-2020  operational 
programmes. They are mainly attributed to the lengthy designation process of national authorities 
(designation for 62 operational programmes, or 11 % of all programmes, still needs to be notified 
to  the  Commission),  which  has  translated  into  slower-than-expected  implementation  in  terms  of 
interim payment claims received despite the reported progress in project selection on the ground. 

The reduction in payment appropriations is proposed for the following budget articles and items. 

Payment 
appropriations 

-667 462 307 

-148 720 085 

-333 817 608 

Budget line 

Name 

04 02 60 

04 02 61 

04 02 62 

13 03 60 

13 03 61 

13 03 62 

13 03 64 01 

13 05 03 01 

13 05 63 01 

22 04 52 

Total  

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

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

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

European  Regional  Development  Fund  (ERDF)  —  Less  developed  regions  —  Investment  for 
growth and jobs goal 

-3 441 410 203 

European Regional Development Fund (ERDF)  — Transition regions  — Investment for growth 
and jobs goal 

European  Regional  Development  Fund  (ERDF)  —  More  developed  regions  —  Investment  for 
growth and jobs goal 

European Regional Development Fund (ERDF) — European territorial cooperation 

Completion of cross-border cooperation (CBC) — Contribution from Subheading 1b 

Cross-border cooperation (CBC) — Contribution from Heading 1b 

Cross-border cooperation (CBC) — Contribution from Heading 1b (Regional policy) 

-491 788 711 

-510 253 467 

-257 368 301 

-15 422 489 

-21 988 054 

-2 512 986 

-5 890 744 211 

The  Commission  has  recurrently  highlighted  this  issue  and  expressed  its  readiness  to  provide 
assistance to Member States to ensure that implementation accelerates. In July, letters co-signed by 
four  Commissioners9  were  sent  to  Member  States,  alerting  them  to  the  worryingly  low  level  of 
implementation and urging them to remove the bottlenecks without further delay.  

2.2 

Heading 2 – Sustainable Growth: Natural resources 

2.2.1   European Agricultural Fund for Rural Development (EAFRD) 

The payment appropriations available on budget  item 05 04 05 01 were  initially  intended for the 
closure  payments  of  the  EAFRD  2007-2013  programmes.  However,  most  of  these  programmes 
were closed and paid at the end of 2016 as additional payment appropriations were made available 
for this purpose in 2016 from the end-of-the year transfer and from the EAFRD 2014-2020 budget 

9  

Commissioners Oettinger, Cretu, Thyssen and Vella. 

5 

 
                                                 
line.  As  a  result,  the  needs  for  closure  payments  in  2017  are  lower  and  an  amount  of 
EUR 780 million may be released. 

Further  to  the  cancellation  of  certain  actions,  a  EUR 1,5 million  reduction  of  the  commitment 
appropriations on budget item 05 04 60 02 is also proposed. 

Budget line 

05 04 05 01 
05 04 60 02 
Total 

Name 

Rural development programmes 

Operational technical assistance 

Commitment 
appropriations 

Payment 
appropriations 

- 
-1 500 000 
-1 500 000 

-780 000 000 
- 
-780 000 000 

2.2.2   Compulsory contributions to regional fisheries management organisations and other 
international organisations and Sustainable Fisheries Agreements 

On the basis of an updated analysis of the state of play of the negotiations for Sustainable Fisheries 
Partnership Agreements, EUR 11,2 million in commitment appropriations and EUR 10,4 million in 
payment  appropriations  may  be  released  from  the  reserve  line  (budget  article  40 02 41). 
Furthermore, EUR 0,2 million, in both commitment and payment appropriations, may be released 
from the compulsory  contributions to international bodies  active in the field  of Maritime Affairs 
and Fisheries (budget article 11 03 02). 

Budget line 

11 03 02 

40 02 41 

Total 

Name 

Promoting sustainable development for fisheries management and marine 
governance in line with the CFP objectives (Compulsory contributions to 
international bodies) 
Differentiated  appropriations  (Reserve  for  budget  article  11  03  01  – 
Establishing a governance framework for fishing activities carried out by 
Union fishing vessels in third country waters) 

Commitment 
appropriations 

Payment 
appropriations 

-207 268 

-207 268 

-11 166 522 

-10 361 522 

-11 373 790 

-10 568 790 

2.2.3   European Agricultural Guarantee Fund (EAGF) 

Further to the cancellation of certain actions, it is proposed to  decrease the level of commitment 
and payment appropriations of the budget item 05 01 04 01 and budget article 05 08 09. 

Budget line 

05 01 04 01 

05 08 09 

Total 

Name 

Support expenditure for the European Agricultural Guarantee Fund 
(EAGF) – Non-operational technical assistance 
European Agricultural Guarantee Fund (EAGF) – Operational technical 
assistance 

Commitment 
appropriations 

Payment 
appropriations 

-900 000 

-900 000 

-1 000 000 

-1 000 000 

-1 900 000 

-1 900 000 

2.2.4   Decentralised agencies (ECHA-biocides) 

The  fee  income  from  industry  of  the  Biocides  activities  of  the  European  Chemicals  Agency 
(ECHA)  in  Helsinki  is  expected  to  be  higher  than  initially  estimated  by  EUR 0,6 million.  As  a 
result, the contribution from the EU budget may be reduced accordingly, in both commitment and 
payment appropriations. 

Budget line 

17 04 07 

Total 

Name 

European  Chemicals  Agency  —  Activities  in  the  field  of  biocides 
legislation 

Commitment 
appropriations 

Payment 
appropriations 

-560 000 

-560 000 

-560 000 

-560 000 

6 

 
 
 
 
 
 
 
Heading 3 – Security and Citizenship 

2.3 
As  already  signalled  in  DAB  5/201710  and  in  the  transfer  DEC  18/2017,  some  delays  have 
occurred in the start-up of the national programmes for the Asylum and Integration Fund (AMIF) 
and the Internal Security Fund (ISF), due to the late adoption of the legal bases and the designation 
of  national  authorities.  However,  progress  is  being  made  with  the  implementation  of  the 
programmes on the ground: the lower than expected declaration of payments by the Member States 
does not necessarily reflect the expenditure incurred by the beneficiaries. 

In addition, both for AMIF and ISF the Commission was able to make important closure payments 
related to the 2007-2013 predecessor programmes at the end of 2016. This reduced the outstanding 
balances to be paid in 2017, and the related payment approprations can be reduced accordingly.  

2.3.1   Asylum, Migration and Integration Fund (AMIF)  

Further  to  the  reasons  above,  the  proposed  reduction  in  payments  takes  into  account  the  slower 
than  originally  planned  implementation  of  the  two  relocation  schemes  under  AMIF  leading  to  a 
lower declaration of expenditures in the annual accounts of the Member States. 

Budget line 

18 03 01 01 

18 03 01 02 

18 03 51 
Total 

Name 

Strengthening and developing the common European asylum system and enhancing solidarity and 
responsibility-sharing between the Member States 
Supporting legal migration to the Union and promoting the effective integration of third-country 
nationals and enhancing fair and effective return strategies 

Completion of operations and programmes in the field of return, refugees and migration flows 

Payment 
appropriations 

-118 000 000 

-8 000 000 

-31 500 000 
-157 500 000 

2.3.2  

Internal Security Fund (ISF) 

The  reduction  in  the  payments  for  the  ISF  stems  from  the  delay  in  the  implementation  of  the 
national programmes (as explained above) and also from the delayed adoption of the new Entry-
Exit System. The Regulation establishing the Entry-Exit System is expected to enter into force in 
November 2017, following the political agreement reached in July. Consequently, the Commission 
intends to carry forward the commitment appropriations (amounting to EUR 40 million) which are 
currently  in  reserve,  in  accordance  with  Article  13  2(b)  of  the  Financial  Regulation.  The  related 
payment appropriations are proposed to be released. 

Budget line 

18 02 01 01 

18 02 01 02 

18 02 51 

40 02 41 

Total 

Name 

Support of border management and a common visa policy to facilitate legitimate travel 
Prevention and fight against cross-border organised crime and better management of security- 
related risks and crisis 
Completion of operations and programmes in the field of external borders, security and 
safeguarding liberties 
Differentiated appropriations (Reserve for budget item 18 02 01 03 – Establishing an Entry/Exit 
System (EES) to register data on the entry, exit and refusal of entry of third country nationals 
crossing the external borders of the Member States of the European Union) 

Payment 
appropriations 

-84 000 000 

-8 700 000 

-9 450 000 

-28 000 000 

-130 150 000 

10  

COM(2017) 485, 28.7.2017. 

7 

 
 
 
 
 
                                                 
2.4 

Heading 4 – Global Europe 

2.4.1  

Instrument for Pre-accession assistance (IPA II) 

It is proposed to reduce a total amount of EUR 268,1 million in payment appropriations identified 
on several IPA budget lines. Some EUR 113 million results from lower payment needs under the 
Facility  for  Refugees  in  Turkey  due  to  the  complex  negotiations  on  some  large  infrastructure 
projects and the resulting contractual delays. The remaining surplus in title 22 is due to delays in 
contracting or in implementation of contracts in the Western Balkans and Turkey. 

Payment  appropriations  also  exceed  the  revised  needs  in  cross-border  cooperation  actions  in 
title 13,  mainly  due  to  a  sharp  decrease  in  the  updated  forecast  submitted  by  the  countries 
concerned compared to the forecast underlying the 2017 budget. 

Budget line 

13 05 02 

13 05 63 02 
22 02 01 01 

22 02 01 02 

Name 

Instrument for Pre-Accession Assistance (IPA) — Completion of regional development 
component (2007 to 2013) 
Cross-border cooperation (CBC) — Contribution from Heading 4 

Support for political reforms and related progressive alignment with the Union acquis 
Support for economic, social and territorial development and related progressive alignment with 
the Union acquis 
Support for political reforms and related progressive alignment with the Union acquis 

22 02 03 01 
22 02 04 01  Multi-country programmes, regional integration and territorial cooperation 
22 02 51 
Total 

Completion of former pre-accession assistance (prior to 2014) 

Payment 
appropriations 

-9 473 967 

-21 988 054 
-74 886 680 

-27 107 354 

-25 583 372 
-94 444 080 
-14 617 033 
-268 100 540 

2.4.2   European Neighbourhood Instrument (ENI) 

It is proposed to reduce a total amount of EUR 434,1 million in payment appropriations identified 
on several ENI budget lines. Some EUR 300 million is explained by delays in the disbursement of 
several budget support tranches to Egypt, Morocco, Moldova, Armenia and Azerbaijan because the 
agreed criteria for their disbursement have not been fulfilled according to schedule. 

The remaining amount of payment appropriations which can be released relates to postponements 
due to difficulties encountered in the implementation of projects. For example legal issues as well 
as the current political context in Gaza have been affecting the smooth implementation of several 
contracts under line 22 04 01 04. In addition, several payments have been postponed due to delays 
in  the  conclusion  of  the  agreements  between  the  government  of  Egypt  and  the  International 
Financing  Institutions  in  the  framework  of  blending  operations.  Finally,  under  several  contracts 
payments  have  been  postponed  due  to  delays  in  receiving  the  payment  requests  from  the 
contractors or additional supporting documents linked to specific payment requests. 

Budget line 

Name 

22 04 01 01  Mediterranean countries — Human rights, good governance and mobility 
22 04 01 02  Mediterranean countries — Poverty reduction and sustainable development 

22 04 01 04 

22 04 02 01 
22 04 02 02 
22 04 03 03 
22 04 03 04 

22 04 51 

Total 

Support to the peace process and financial assistance to Palestine and to the United Nations Relief 
and Works Agency for Palestine Refugees (UNRWA) 
Eastern Partnership — Human rights, good governance and mobility 

Eastern Partnership — Poverty reduction and sustainable development 

Support to other multi-country cooperation in the neighbourhood — Umbrella programme 

Other multi-country cooperation in the neighbourhood — Supporting measures 
Completion of actions in the area of European Neighbourhood Policy and relations with Russia 
(prior to 2014) 

Payment 
appropriations 

-6 200 513 
-85 959 584 

-56 028 674 

-25 995 110 
-103 090 754 
-58 339 566 
-1 239 476 

-97 282 992 

-434 136 669 

8 

 
 
 
2.5 

European Union Solidarity Fund (EUSF) 

There  has  been  no  request  in  2017  for  pre-financing  under  the  EUSF  and  the  full  amount  of 
EUR 50 million  entered  in  the  2017  budget  for  this  purpose  at  the  time  of  its  adoption  is  still 
available. At this stage the Commission proposes to keep EUR 4 million on budget article 13 06 01 
to face any unexpected request. Consequently, EUR 46 million, in both commitment and payment 
appropriations, may be released. 

Budget line 

Name 

Assistance to Member States in the event of a major natural disaster with 
serious repercussions on living conditions, the natural environment or the 
economy 

13 06 01 

Total 

Commitment 
appropriations 

Payment 
appropriations 

-46 000 000 

-46 000 000 

-46 000 000 

-46 000 000 

3. 

UPDATE OF REVENUE  

3.1 

Overall impact of DAB 6/2017 on the distribution of total own  resources payments 
between Member States 

As  the  present  DAB  decreases  the  payment  appropriations  of  the  2017  budget,  it  will  therefore 
have an impact on the total amount payable by Member States towards this budget. However there 
are also three adjustments on the revenue side of the budget which need to be taken into account. 
The first of these adjustments is an update of the estimates for Traditional Own Resources (TOR), 
as  well  as  the  Value  Added  Tax  (VAT)  and  Gross  National  Income  (GNI)  resources,  which  are 
updated to take account of more recent economic forecasts. The second and third adjustments on 
the revenue side concern the update of the UK correction and the level of competition fines that 
has  become  definitive  at  the  end  of  September  2017.  These  three  adjustments  are  presented  in 
sections 3.2, 3.3 and 3.4, below. 

The overall impact of both the expenditure and the revenue adjustments of this DAB is shown in 
the summary table below. This table also shows the distribution of total own resources payments 
between Member States: as budgeted in the 2017 budget, as amended in Amending Budget (AB) 
2/201711, and finally in the present DAB. 

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

Budget 2017 

AB 2/2017 

DAB 6/2017 

(1) 

(2) 

(3) 

5 593,8 
 437,1 
1 591,4 
2 562,8 
27 133,2 
 210,4 
1 966,4 
1 618,8 
10 802,0 
20 461,9 
 427,8 
15 373,8 
 165,6 
 250,1 
 401,6 

5 412,4 
 418,4 
1 523,0 
2 441,6 
25 759,2 
 201,3 
1 881,3 
1 543,1 
10 319,7 
19 494,2 
 408,7 
14 662,3 
 158,2 
 238,8 
 385,2 

5 232,8 
425,3 
1 459,0 
2 234,4 
23 823,1 
187,8 
1 870,7 
1 431,7 
9 768,3 
18 167,2 
386,2 
13 770,2 
151,1 
226,0 
356,0 

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

11  

Amending budgets 3/2017 and 4/2017 as well as Draft Amending Budget 5/2017 have no effect on revenue. 

9 

 
 
 
 
                                                 
Budget 2017 

AB 2/2017 

DAB 6/2017 

(1) 

 318,6 
1 072,0 
 92,9 
6 764,9 
2 943,7 
4 102,9 
1 671,7 
1 512,7 
 402,1 
 733,7 
1 881,4 
3 899,8 
17 324,6 
131 718,0 

(2) 

 303,5 
1 023,9 
 88,9 
6 464,0 
2 795,1 
3 923,0 
1 593,7 
1 439,2 
 385,3 
 699,9 
1 791,2 
3 686,8 
16 271,7 
125 313,4 

(3) 

294,4 
965,5 
84,0 
5 941,6 
2 634,8 
3 613,0 
1 504,4 
1 357,0 
363,2 
662,7 
1 707,6 
3 218,3 
13 647,6 
115 483,8 

LU 
HU 
MT 
NL 
AT 
PL 
PT 
RO 
SI 
SK 
FI 
SE 
UK 
EU 

3.2 

Revision of the forecast of TOR, VAT and GNI bases 

According to established practice, the Commission proposes to revise the financing of the budget 
on the basis of more recent economic forecasts, agreed at a meeting of the Advisory Committee on 
Own Resources (ACOR). 

The revision concerns the forecast of Traditional Own Resources to be paid to the budget in 2017 
as  well  as  the  forecast  of  the  2017  VAT  and  GNI  bases.  The  forecast  in  the  2017  budget  was 
established at the 166th ACOR meeting on 18 May 2016. The revised forecast taken into account in 
the present DAB was agreed at the 169th ACOR meeting on 19 May 2017. The use of an updated 
forecast  of  own  resources  improves  the  accuracy  of  the  revenue  forecasts  and  hence  of  the 
payments that Member States are asked to make during the budgetary year. 

As  compared  to  the  forecast  agreed  in  May  2016,  the  forecast  agreed  in  May  2017  has  been 
revised as follows12: 

–  Total  2017  net  TOR  are  now  forecast  at  EUR 20 507,3 million  (after  deduction  of  20 %  in 
collection  costs),  which  represents  a  decrease  of  -4,47 %  relative  to  the  forecast  of 
EUR 21 467,0 million  included  in  the  2017  budget.  The  Commission  compared  the  results  of 
the  traditional  ACOR  forecasting  methodology  (based  on  the  spring  2017  macroeconomic 
forecast)  with  the  results  of  the  extrapolation  based  on  the  latest  outturn  data  for  collected 
customs  duties  (January  –  April  2017).  Since  the  difference  between  the  two  methods  was 
relatively  significant  (EUR 1 220 billion)  the  traditional  ACOR  updated  TOR  forecast  is  fully 
adjusted to the extrapolation method forecast. 

–  The  total  2017  EU  uncapped  VAT  base  is  now  forecast  at  EUR 6 487 607,8 million,  which 
forecast  of 
represents  an 
EUR 6 477 447,9 million.  The 
forecast  at 
EUR 6 468 770,4 million, which represents an increase of +0,15 % compared to the May 2016 
forecast of EUR 6 459 187,15 million. 

total  2017  EU  capped  VAT  base13 

the  May  2016 
is 

increase  of  +0,16 %  compared 

to 

–  The  total  2017  EU  GNI  base  is  forecast  at  EUR 15 177 843,6 million,  which  is  a  decrease  (-

1,51 %) compared to the May 2016 forecast of EUR 15 410 553,3 million. 

12  

13  

The total forecast of 2017 net sugar sector levies remains at the same level, however due to the change in the collection 
costs the amount is different (EUR 133,3 million, after deduction of 20 % in collection costs). 
In accordance with Council Decision 2014/335, if the VAT base of a Member State exceeds 50 % of its GNI, then it is 
capped  at  this  50 %.  For  DAB  6/2017,  six  Member  States  will  have  their  VAT  base  capped  at  50 %  of  GNI:  Estonia, 
Croatia, Cyprus, Luxembourg, Malta and Portugal. 

10 

 
 
                                                 
The  exchange  rates  of  30  December  2016  have  been  used  for  converting  the  forecast  VAT  and 
GNI bases in national currency into euro (for the nine Member States that are not members of the 
euro  area).  This  avoids  distortions  since  it  is  this  rate  that  is  used  to  convert  budgeted  own 
resources payments from euro into national currency when the amounts are called in (as stipulated 
in Article 10a(1) of Council Regulation No 609/2014). 

The  revised  forecasts  of  TOR,  uncapped  VAT  bases  and  GNI  bases  for  2017,  as  adopted  at  the 
169th ACOR meeting on 19 May 2017, are set out in the following table: 

Revised forecasts of TOR, VAT and GNI bases for 2017 (in million EUR) 

Sugar 
levies 
(80 %)  

Customs 
duties 
(80 %) 

Uncapped 
VAT bases 

GNI bases 

Capped 
VAT bases14 

BE 
BG 
CZ 
DK 
DE 
EE 
IE 
EL 
ES 
FR 
HR 
IT 
CY 
LV 
LT 
LU 
HU 
MT 
NL 
AT 
PL 
PT 
RO 
SI 
SK 
FI 
SE 
UK 
EU-28 

7,0 
0,4 
3,6 
3,6 
28,1 
0,0 
0,0 
1,5 
5,0 
33,0 
1,9 
5,0 
0,0 
0,0 
0,9 
0,0 
2,2 
0,0 
7,7 
3,4 
13,7 
0,2 
1,0 
0,0 
1,4 
0,8 
2,8 
10,10 
133,3 

2 180,8  
74,3  
253,9  
333,1  
4 214,7  
29,1  
277,1  
156,9  
1 521,4  
1 599,0  
45,8  
1 910,7  
20,3  
40,7  
77,0  
19,5  
140,1  
11,9  
2 433,2  
204,1  
608,6  
138,3  
148,0  
67,6  
95,7  
140,5  
497,4  
3 134,5  
20 374,0  

181 702,0 
23 169,3  
69 591,7  
109 543,6  
1 344 582,5  
11 013,6  
82 328,0  
72 702,4  
511 216,1  
1 016 719,6  
28 337,3  
649 635,8  
12 082,5  
10 662,9  
16 556,7  
26 940,4  
48 357,0  
6 757,1  
304 311,3  
168 078,0  
179 446,7  
93 756,3  
63 769,3  
19 185,3  
28 850,4  
94 101,7  
208 548,1  
1 105 662,2  
6 487 607,8  

430 857,3  
48 254,9  
170 821,6  
294 073,0  
3 292 895,8  
21 710,8  
231 429,7  
181 726,6  
1 157 887,3  
2 324 154,3  
46 300,3  
1 705 264,7  
17 909,5  
26 452,1  
39 240,8  
37 268,3  
116 824,7  
9 843,1  
712 882,7  
360 646,5  
422 847,6  
187 067,6  
174 951,6  
40 910,3  
82 304,9  
220 743,3  
488 888,5  
2 333 685,8  
15 177 843,6  

181 702,0  
23 169,3  
69 591,7  
109 543,6  
1 344 582,5  
10 855,4  
82 328,0  
72 702,4  
511 216,1  
1 016 719,6  
23 150,2  
649 635,8  
8 954,8  
10 662,9  
16 556,7  
18 634,2  
48 357,0  
4 921,6 
304 311,3  
168 078,0  
179 446,7  
93 533,8  
63 769,3  
19 185,3  
28 850,4  
94 101,7  
208 548,1  
1 105 662,2  
6 468 770,4  

3.3 

2016 and 2013 UK correction 

3.3.1 

Introduction 

The correction of budgetary imbalances in favour of the United Kingdom (UK correction), to be 
budgeted in the present DAB, concerns two years: 2013 and 2016. 

The 2013 UK correction is subject to the rules of Council Decision 2007/436/EC, Euratom on the 
system of the European Communities' own resources15 and its accompanying working document, 

14  
15  

The amounts highlighted in grey result from the capped VAT bases, as explained in footnote [11] above. 
OJ L 163, 23.6.2007, p. 17. 

11 

 
 
                                                 
the 2007 Calculation Method16. Pursuant to the rules of this Decision, the net TOR “windfall 
gains” of the UK resulting from the increase since 2001 in the percentage of TOR retained by 
Member States as a compensation for their collection costs are neutralised and the allocated 
expenditure is adjusted by the total allocated expenditure in Member States that have acceded to 
the EU after 30 April 2004, except for agricultural direct payments and market-related expenditure 
as well as that part of the rural development expenditure originating from the EAGGF, Guarantee 
section.  
The 2016 UK correction is subject to the rules of Council Decision 2014/335/EU, Euratom on the 
system  of  own  resources17  of  the  European  Union  and  its  accompanying  working  document,  the 
2014 Calculation Method18. Pursuant to the rules of this Decision, the net TOR “windfall gains” of 
the  UK  resulting  from  the  increase  since  2001  in  the  percentage  of  TOR  retained  by  Member 
States  as  a  compensation  for  their  collection  costs  are  neutralised  (taking  into  account  the 
collection cost of 20%) and the allocated expenditure is adjusted by the total allocated expenditure 
in Member States that have acceded to the EU after 30 April 2004, except for agricultural direct 
payments and market-related expenditure as well as that part of the rural development expenditure 
originating from the EAGGF, Guarantee section.  

Furthermore, the share of Austria, Germany, the Netherlands and Sweden in the financing of the 
UK correction is reduced to one fourth of their normal share for both, 2013 and 2016 corrections. 
The reduction is financed by the other Member States, excluding the UK. 

The  difference  between  the  definitive  amount  of  the  2013  UK  correction  and  the  amount 
previously budgeted (the 2nd update entered in AB 5/2016) is entered in chapter 35 of the present 
DAB.  

The  difference  between  the  1st  update  amount  of  the  2016  UK  correction  and  the  amount 
previously budgeted (the provisional amount entered in Budget 2017) is entered in chapter 15 of 
the present DAB. 

3.3.2  Calculation of the corrections 
In the present DAB, the calculation and financing of the 1st update of the 2016 UK correction and 
the definitive amount of the 2013 UK correction are entered. 

The update of the corrections for 2013 and 2016 stems  mainly from the update of the VAT and 
GNI  bases  as  communicated  by  Member  States  in  autumn  2016.  In  addition  the  update  of  the 
correction for 2016 also takes into account the allocated expenditure of 2016.  

3.3.2.1 2016 UK correction 

The  following  table  summarises  the  changes  between  the  provisional  amount  of  the  2016  UK 
correction entered in Budget 2017 and the 1st update of the 2016 UK correction to be entered in the 
present DAB. 

2016 UK correction 

2016 UK 
correction 
PROVISIONAL 
Budget 2017 

2016 UK 
correction 
1st UPDATE 
DAB 6/2017 

Difference 

16 

17  
18 

Commission  working  document  of  23  May  2007  "Calculation,  financing,  payment  and  entry  in  the  budget  of  the 
correction of budgetary imbalances in accordance with Articles 4 and 5 of Council Decision [2007/436/EC, Euratom] on 
the system of the European Communities' own resources” available on:  
http://ec.europa.eu/budget/library/biblio/documents/financing/calc_own_res_2007_en.pdf. 

OJ L 168, 7.6.2014, p. 105-111. 
Commission working document of 14 May 2014 "Calculation, financing, payment and entry in the budget of the 
correction of budgetary imbalances in favour of the United Kingdom ("the correction") in accordance with Articles 4 and 
5 of Council Decision [2014/335/EC, Euratom] on the system of own resources of the European Union” available on:  
 http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52014DC0271&rid=8. 

12 

 
 
                                                 
2016 UK correction 

(2) 

(1)  UK share of uncapped VAT base 
UK share of enlargement-adjusted 
total allocated expenditure 
= (1) - (2) 

(3) 
(4)  Total allocated expenditure 

(5) 

Enlargement-related expenditure 
= (5a) + (5b) 

(5a)  Pre-accession expenditure 
(5b)  Expenditure related to Art 4(1)(g) 

(6) 

(7) 

Enlargement-adjusted total allocated 
expenditure = (4) - (5) 
UK correction original amount = (3) 
x (6) x 0.66 

(8)  UK advantage 
(9)  Core UK correction = (7) - (8) 
(10)  TOR windfall gains 
(11)  UK correction = (9) - (10) 

2016 UK 
correction 
PROVISIONAL 
Budget 2017 
(1) 
18,0077% 

2016 UK 
correction 
1st UPDATE 
DAB 6/2017 
(2) 
17,5900% 

7,2983% 

7,6814% 

Difference 

(2)-(1) 

-0,4177% 

+0,3832% 

10,7095% 
129 383 323 229 

9,9086% 
117 477 286 403 

-0,8009% 
- 11 906 036 826 

34 414 600 712 

25 506 896 869 

- 8 907 703 843 

0 
34 414 600 712 

0 
25 506 896 869 

0 
- 8 907 703 843 

94 968 722 517 

91 970 389 534 

- 2 998 332 984 

6 712 622 123 

6 014 542 348 

- 698 079 776 

1 524 007 149 
5 188 614 974 
- 49 835 714 
5 238 450 688 

1 128 635 343 
4 885 907 005 
- 46 683 873 
4 932 590 878 

- 395 371 806 
- 302 707 970 
+ 3 151 841 
- 305 859 810 

The  1st  update  of  the  2016  UK  correction  is  around  EUR 306 million  lower  as  compared  to  the 
provisional amount of the 2016 UK correction entered in Budget 2017. 

 2013 UK correction 

3.3.2.2 
The  following  table  summarises  the  changes  between  the  2nd  update  of  the  2013  UK  correction 
entered  in  AB  5/2016  and  the  definitive  amount  of  the  2013  UK  correction  to  be  entered  in  the 
present DAB. 

13 

 
 
 
 
2013 UK correction 

(2) 

(1)  UK share of uncapped VAT base 
UK share of enlargement-adjusted 
total allocated expenditure 
= (1) - (2) 

(3) 
(4)  Total allocated expenditure 

(5) 

Enlargement-related expenditure 
= (5a) + (5b) 

(5a)  Pre-accession expenditure 
(5b)  Expenditure related to Art 4(1)(g) 

(6) 

(7) 

Enlargement-adjusted total allocated 
expenditure = (4) - (5) 
UK correction original amount = (3) 
x (6) x 0.66 

(8)  UK advantage 
(9)  Core UK correction = (7) - (8) 
(10)  TOR windfall gains 
(11)  UK correction = (9) - (10) 

2013 UK 
correction 
2nd UPDATE  
AB 5/2016 
(1) 
16,0378% 

2013 UK 
correction 
DEFINITIVE 
DAB 6/2017 
(2) 
16,2955% 

6,0959% 

6,0959% 

9,9418% 
134 745 129 775 

10,1996% 
134 745 129 775 

31 288 595 815 

31 288 595 815 

0 
31 288 595 815 

0 
31 288 595 815 

103 456 533 960 

103 456 533 960 

Difference 

(2)-(1) 

+ 0,2577% 

+ 0,0000% 

+ 0,2577% 
0 

0 

0 
0 

0 

6 788 418 578 

6 964 389 260 

+ 175 970 682 

846 456 483 
5 941 962 095 
18 914 477 
5 923 047 619 

931 944 129 
6 032 445 131 
10 994 751 
6 021 450 379 

+ 85 487 646 
+90 483 036 
- 7 919 725 
+98 402 760 

The definitive amount of the 2013 UK correction is EUR 98 million higher than the 2nd update of 
the  2013  UK  correction  entered  in  AB  5/2016  mainly  due  to  the  updates  of  the  VAT  and  GNI 
bases as communicated by Member States in autumn 2016. 

3.3.3 

Entry in the DAB 6/2017 of the 1st update of the 2016 UK correction and definitive 
amount of the 2013 UK correction  

3.3.3.1  2013 UK correction (chapter 35) 

The amount of the UK correction to be budgeted in chapter 35 of the present DAB is the difference 
between  the  definitive  amount  of  the  2013  UK  correction  (i.e.  EUR 6 021 450 379)  and  the  2nd 
update of the 2013 UK correction (i.e. EUR 5 923 047 619 entered in AB 5/2016)  amounting to 
EUR 98 402 760. 

This amount is to be financed along the revised 2013 GNI bases as known at the end of 2016. The 
budgeting of this amount in chapter 35 is summarised below: 

2013 UK correction — Chapter 35 

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

LU 
3 427 431 
HU 
1 515 290 
2 998 256  MT 
NL 
6 889 492 
AT 
8 754 255 
PL 
368 634 
PT 
5 640 096 
RO 
2 191 253 
SI 
- 651 779 
SK 
18 525 521 
FI 
824 776 
SE 
25 072 902 
228 695 
81 908 

UK 
1 117 632  Total 

2 999 679 
1 214 768 
320 388 
1 151 037 
418 805 
2 257 310 
1 399 728 
2 993 513 
916 682 
2 214 808 
4 965 839 
565 841 

- 98 402 760 
0 

14 

 
 
 
 
 
 
 
 
 
3.3.3.2  2016 UK correction (chapter 15) 
The  1st  update  of  the  2016  UK  correction  corresponds  to  EUR 4 932 590 878  and  is 
EUR 305 859 810 million lower than the amount entered in Budget 2017 (EUR 5 238 450 688). 

This  amount  is  to  be  financed  along  the  revised  2017  GNI  bases  of  the  present  DAB.  The 
budgeting of this amount in chapter 15 is summarised below: 

2016 UK correction – chapter 15 

240 885 677 
LU 
 26 978 571  HU 
95 503 724  MT 
164 411 683 
NL 
316 145 831 
AT 
12 138 174 
PL 
129 388 779 
PT 
101 600 542 
RO 
647 356 946 
SI 
1 299 398 854 
SK 
25 885 784 
FI 
953 387 216 
SE 
10 012 925 
14 788 961 
21 938 927  Total  

UK 

20 836 132 
65 314 890 
5 503 126 
68 442 765 
34 625 113 
236 407 577 
104 586 612 
97 812 744 
22 872 318 
46 015 401 
123 414 177 
46 937 429 

- 4 932 590 878 

0 

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

3.4 

Fines 

At the end of September 2017, an amount of EUR 3 209,7 million of fines (principal) has become 
definitive. According to Article 83 of the Financial Regulation, definitive fines "shall be recorded 
as soon as possible and at the latest in the year following the exhaustion of all legal remedies".  

This  amount  exceeds  the  level  of  fines  that  was  initially  estimated  in  the  budget  2017,  i.e. 
EUR 1 100,0 million.  The  difference,  EUR 2 209,7 million  will  reduce  accordingly  the  own 
resources contributions from Member States to the EU budget. 

The below table gives the breakdown of fines by case. 

Case Number 
8228 
38238 
38589 
38866 
39092 
39181 
39437 
39759 
39824 
39904 
39960 
39966 
40028 

Total 

Case title 

Facebook / WhatsApp (Art. 14.1 proc.) 
Raw Tobacco (ES) 
Heat stabilisers 
Animal Feed Phosphates 
Bathroom fittings & fixtures 
Candle waxes 
TV and computer monitor tubes 
ARA foreclosure 
Trucks 
Rechargeable batteries 
Thermal systems 
Gas Insulated Switchgear re-adoption 
Alternators and Starters 

Policy Area 
Merger 
Cartel 
Cartel 
Cartel 
Cartel 
Cartel 
Cartel 
Antitrust 
Cartel 
Cartel 
Cartel 
Cartel 
Cartel 

In EUR 

Fines 
110 000 000 
1 579 500 
40 193 990 
59 850 000 
139 191 989 
36 000 000 
1 242 091 000 
6 015 000 
1 165 054 000 
165 841 000 
155 575 000 
61 443 000 
26 860 000 
3 209 694 479 

15 

 
  
  
 
4. 

SUMMARY TABLE BY MFF HEADING 

Heading 

(incl. AB 1-4 & DAB 5/2017) 

Budget 2017 

Draft Amending Budget 6/2017 

Budget 2017 

(incl. AB 1-4 & DAB 5-6/2017) 

CA 

PA 

CA 

PA 

CA 

PA 

1. 

Smart and inclusive growth 

75 398 754 456 

55 284 563 532 

-5 890 744 211 

75 398 754 456 

49 393 819 321 

Of which under global margin for commitments 

1 939 100 000 

Ceiling  

Margin 

73 512 000 000 

 52 345 544 

1 939 100 000 

73 512 000 000 

 52 345 544 

1a 

Competitiveness for growth and jobs 

21 312 155 821 

19 320 944 503 

21 312 155 821 

19 320 944 503 

Of which under global margin for commitments 

1 439 100 000 

Ceiling 

Margin 

19 925 000 000 

 51 944 179 

1 439 100 000 

19 925 000 000 

 51 944 179 

1b   Economic  social and territorial cohesion 

54 086 598 635 

35 963 619 029 

-5 890 744 211 

54 086 598 635 

30 072 874 818 

Of which under global margin for commitments 

 500 000 000 

Ceiling 

Margin 

53 587 000 000 

  401 365 

 500 000 000 

53 587 000 000 

  401 365 

2. 

Sustainable growth: natural resources 

58 584 443 884 

54 913 969 537 

- 15 333 790 

- 793 028 790 

58 569 110 094 

54 120 940 747 

60 191 000 000 

- 575 000 000 

1 046 889 906 

Of which offset against Contingency margin 

- 575 000 000 

Ceiling 

60 191 000 000 

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

1 031 556 116 

42 612 572 079 

42 562 967 974 

- 1 900 000 

- 1 900 000 

42 610 672 079 

42 561 067 974 

3. 

Security and citizenship 

4 284 030 960 

3 511 957 287 

- 287 650 000 

4 284 030 960 

3 224 307 287 

Sub-ceiling 

44 146 000 000 

44 146 000 000 

Of which under Flexibility Instrument 

 530 000 000 

Of which under Contingency margin 

1 176 030 960 

Ceiling 

Margin 

2 578 000 000 

 530 000 000 

1 176 030 960 

2 578 000 000 

4.  Global Europe 

10 437 120 000 

9 758 081 178 

- 702 237 209 

10 437 120 000 

9 055 843 969 

Of which under Flexibility Instrument 

Of which under Contingency margin 

Ceiling 

Margin 

 275 000 000 

 730 120 000 

9 432 000 000 

5. 

Administration 

9 394 513 816 

9 394 599 816 

Ceiling 

9 918 000 000 

Of which offset against Contingency margin 

- 507 268 804 

Margin 

 16 217 380 

 275 000 000 

 730 120 000 

9 432 000 000 

9 394 513 816 

9 918 000 000 

- 507 268 804 

 16 217 380 

9 394 599 816 

Of which: Administrative expenditure of the 
institutions 

7 418 902 660 

7 418 988 660 

7 418 902 660 

7 418 988 660 

Of which offset against Contingency margin 

- 507 268 804 

Sub-ceiling 

8 007 000 000 

Margin 

 80 828 536 

Negative reserve 

8 007 000 000 

- 507 268 804 

 80 828 536 

Total 

158 098 863 116 

132 863 171 350 

- 15 333 790 

-7 673 660 210 

158 083 529 326 

125 189 511 140 

Of which under Flexibility Instrument 

 805 000 000 

1 256 093 985 

Of which under global margin for commitments 

1 939 100 000 

Of which under Contingency margin 

1 906 150 960 

Of which offset against Contingency margin 

-1 082 268 804 

-2 818 233 715 

Margin 

1 100 119 040 

8 480 688 920 

Ceiling 

155 631 000 000 

142 906 000 000 

 805 000 000 

1 939 100 000 

1 906 150 960 

1 256 093 985 

155 631 000 000 

142 906 000 000 

-1 082 268 804 

-2 818 233 715 

1 115 452 830 

16 154 349 130 

Other special Instruments 

1 793 924 013 

1 627 200 013 

- 46 000 000 

- 46 000 000 

1 747 924 013 

1 581 200 013 

Grand Total 

159 892 787 129 

134 490 371 363 

- 61 333 790 

-7 719 660 210 

159 831 453 339 

126 770 711 153 

16