COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS ANNUAL ACCOUNTS OF THE EUROPEAN COMMISSION 2017
Date: 2018-06-27
Institutions: Directorate-General for Budget, European Commission
Subjects: balance sheet, consolidated account, financial situation, general budget (EU), implementation of the budget

   EUROPEAN COMMISSION  Brussels, 27.6.2018 COM(2018) 525 final  COMMUNICATION  FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS ANNUAL ACCOUNTS OF THE EUROPEAN COMMISSION 2017  
 
 
EN 

  EN 

 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

CONTENTS 

CERTIFICATION OF THE ACCOUNTS .................................................................... 4 

FINANCIAL STATEMENTS AND EXPLANATORY NOTES ............................................ 6 

BALANCE SHEET ............................................................................................ 9 

STATEMENT OF FINANCIAL PERFORMANCE ..................................................... 10 

CASHFLOW STATEMENT ............................................................................... 11 

STATEMENT OF CHANGES IN NET ASSETS ...................................................... 12 

NOTES TO THE FINANCIAL STATEMENTS ........................................................ 13 

BUDGETARY IMPLEMENTATION REPORTS ........................................................... 57 

2 

 
  
 
Annual accounts of the European Commission 2017 

3 

 
 
 
Annual accounts of the European Commission 2017 

CERTIFICATION OF THE ACCOUNTS 

The annual accounts of  the European  Commission for  the year 2017 have  been  prepared  in  accordance 
with the Financial Regulation applicable to the general budget of the European Union and the accounting 
rules adopted by myself in my capacity as the Commission's Accounting Officer, as are to be applied  by 
all the institutions and Union bodies. 

I  acknowledge  my  responsibility  for  the  preparation  and  presentation  of  the  annual  accounts  of  the 
European Commission in accordance with Article 68 of the Financial Regulation. 

I have obtained from the authorising officers, who certified its reliability, all the information necessary for 
the  production  of  the  accounts  that  show  the  European  Commission'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,  I  have  a  reasonable  assurance  that  the  accounts  present  fairly,  in  all  material  aspects,  the 
financial position, the results of the operations and the cash flow of the European Commission. 

[signed] 

Rosa ALDEA BUSQUETS 

Accounting Officer of the Commission 

22 June 2018 

4 

 
 
 
 
  
 
 
Annual accounts of the European Commission 2017 

5 

 
 
Annual accounts of the European Commission 2017 

EUROPEAN COMMISSION 
FINANCIAL YEAR 2017 

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.

6 

 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

7 

 
 
 
Annual accounts of the European Commission 2017 

CONTENTS 

BALANCE SHEET ............................................................................................... 9 

STATEMENT OF FINANCIAL PERFORMANCE ........................................................ 10 

CASHFLOW STATEMENT .................................................................................. 11 

STATEMENT OF CHANGES IN NET ASSETS ......................................................... 12 

NOTES TO THE FINANCIAL STATEMENTS ........................................................... 13 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

SIGNIFICANT ACCOUNTING POLICIES ................................................. 14 

NOTES TO THE BALANCE SHEET ......................................................... 27 

NOTES TO THE STATEMENT OF FINANCIAL PERFORMANCE ..................... 43 

CONTINGENT LIABILITIES AND ASSETS ............................................... 47 

BUDGETARY AND LEGAL COMMITMENTS .............................................. 48 

FINANCIAL INSTRUMENTS DISCLOSURES ............................................ 50 

RELATED PARTIES ............................................................................ 54 

EVENTS AFTER THE BALANCE SHEET DATE .......................................... 55 

8 

 
 
 
Annual accounts of the European Commission 2017 

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 

31.12.2017 

31.12.2016 

 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 

 149 
7 544 
 581 
58 533 
24 745 
 619 

92 172 

8 339 
24 552 
11 421 
 62 
23 113 

67 488 
159 659 

(72 495) 
(2 617) 
(49 414) 

 135 
6 832 
 528 
60 733 
21 777 
 729 

90 734 

3 295 
23 964 
10 607 
 75 
27 579 

65 521 
156 255 

(66 550) 
(1 786) 
(54 375) 

(124 526) 

(122 711) 

 (645) 
(6 813) 
(39 376) 
(63 314) 

(110 148) 
(234 674) 

 (626) 
(2 165) 
(40 240) 
(67 027) 

(110 059) 
(232 770) 

(75 014) 

(76 515) 

3 062 
(78 077) 
(75 014) 

3 031 
(79 546) 
(76 515) 

*  The European Parliament adopted a budget on 18 November 2017 which provides for the payment of the Commission's short-term 
liabilities from own resources to be collected by, or called up from, the Member States in 2018. 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. 

9 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

STATEMENT OF FINANCIAL PERFORMANCE 

Note 

2017 

EUR millions 

2016 

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

Revenue from exchange transactions 
Financial revenue 
Other 

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 &         
Cohesion Fund 
European Social Fund 
Other 

3.1 

3.2 
3.3 

3.4 
3.5 

3.6 

Implemented by the Commission, executive agencies 
and trust funds 
Implemented by other EU agencies and bodies 
Implemented by third countries and int. organisations 
Implemented by other entities 
Staff and pension costs 
Changes in employee benefits actuarial assumptions 
Finance costs 
Other 

3.7 

3.8 
3.8 
3.8 
3.9 

3.10 
3.11 

78 620 
20 520 
16 947 
4 664 
1 879 
6 515 

95 578 
20 439 
15 859 
3 858 
1 946 
1 695 

129 145 

139 376 

1 820 
 692 

2 511 

1 746 
 649 

2 395 

131 657 

141 771 

(44 289) 
(11 359) 

(44 152) 
(12 604) 

(17 650) 

(35 045) 

(7 353) 
(1 253) 
(15 763) 

(3 429) 
(4 115) 
(1 478) 
(6 995) 
(3 581) 
(1 849) 
(4 642) 

(9 366) 
(1 606) 
(15 644) 

(3 064) 
(3 259) 
(2 035) 
(6 911) 
 (992) 
(1 857) 
(3 462) 

Total Expenses 
ECONOMIC RESULT OF THE YEAR 

(123 756) 
7 901 

(139 996) 
1 775 

10 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

CASHFLOW STATEMENT 

Note 

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 other  
employee benefits 
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 
(Increase)/decrease in financial assets at fair value 
through surplus or deficit 
NET CASHFLOW 

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 

2017 
7 901 

 27 
 630 
 395 
(3 557) 
 (705) 

 13 
5 945 

 850 
 (313) 
 (864) 
(3 713) 

(6 405) 

 4 

EUR millions 

2016 
1 775 

 26 
 314 
1 726 
 (497) 
(1 222) 

 0 
3 343 

 548 
(2 254) 
7 874 
 (935) 

(1 349) 

 23 

(1 382) 

(1 587) 

 (53) 

(3 217) 

 (22) 

(4 467) 

(4 467) 
27 579 

23 113 

 (31) 

 (835) 

 (0) 

6 920 

6 920 
20 660 

27 579 

11 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENT OF CHANGES IN NET ASSETS 

Annual accounts of the European Commission 2017 

BALANCE AS AT 31.12.2015 
Movement in Guarantee Fund reserve 
Fair value movements 
Other 
2016 budget result credited to Member States 
Economic result of the year 
BALANCE AS AT 31.12.2016 
Movement in Guarantee Fund reserve 
Fair value movements 
Other 
2017 budget result credited to Member States 
Economic result of the year 
BALANCE AS AT 31.12.2017 

Amounts to be called from Member States 
Accumulated Surplus/(Deficit) 

Other reserves 

Fair value 
reserve 

(79 878) 
 (82) 
– 
 (11) 
(1 349) 
1 775 
(79 546) 
 (20) 
– 
 (7) 
(6 405) 
7 901 
(78 077) 

2 629 
 82 
– 
 9 
– 
– 
2 720 
 20 
– 
 47 
– 
– 
2 788 

 286 
– 
 24 
– 
– 
– 
 311 
– 
 10 
 (46) 
– 
– 
 275 

EUR millions 

Net Assets 

(76 964) 
- 
 24 
 (2) 
(1 349) 
1 775 
(76 515) 
– 
 10 
 (6) 
(6 405) 
7 901 
(75 014) 

12 

 
 
 
 
 
 
 
  
 
Annual accounts of the European Commission 2017 

NOTES TO THE FINANCIAL STATEMENTS 

For further information in addition to the notes below, please also see the 2017 EU consolidated annual 
accounts. 

13 

 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

1. 

SIGNIFICANT ACCOUNTING POLICIES 

The European Commission (hereinafter referred to as the Commission) applies the accounting policies of 
the  European  Union  (hereinafter  referred  to  as  the  EU).  A  summary  of  the  significant  EU  accounting 
policies is given below. 

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 October 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 December 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. 

Application of new and amended European Union accounting rules (EAR) 

Amendments to EAR which are effective for annual periods beginning on or after 1 January 2017 

The following amendments have been adopted by the Accounting Officer of the Commission: 

  Amendments to EAR 1 "Financial Statements"; and  

  Amendments to EAR 14 "Accounting Policies, Changes in Accounting Estimates and Errors". 

These amendments stem from the recent changes to IPSAS 1 "Presentation of Financial Statements" 
and  IPSAS  3  "Accounting  Policies,  Changes  in  Accounting  Estimates  and  Errors",  proposing 
improvements  to  ensure  consistency  among  IPSAS  standards.  Consequently,  the  related  EARs  have 
been updated and the main changes relate to the description of qualitative characteristics of financial 
reporting  and  updates  to  the  hierarchy  of  sources  to  be  used  in  the  selection  and  application  of 
accounting policies.  

The adoption of these amendments has had no impact on the EU annual accounts 2017. 

New and revised EARs adopted but not yet effective at 31 December 2017 

The EU has not applied the following new and revised EARs, which have been adopted by the Accounting 
Officer of the Commission, but which are not yet effective: 

  Revision  to  EAR  12  "Employee  Benefits"  (effective  for  annual  periods  beginning  on  or  after 
1 January  2018):  The  EAR  12  has  been  revised  in  line  with  the  new  IPSAS  39  "Employee 
Benefits".  The  main  change  is  that  any  gain  or  loss  resulting  from  changes  in  the  actuarial 
assumptions is to be recognised directly in net assets, in contrast with the current requirement to 
recognise them in surplus or deficit. 

The  EU  is  currently  analysing  the  impact  and  practical  consequences  of  applying  this  revised  EAR. 
However,  no  significant  impact  is  expected  on  the  consolidated  financial  statements,  except  for  the 
recognition  of  the  actuarial  assumptions  in  the  net  assets  instead  of  the  statement  of  financial 
performance. 

  New  EAR  20  "Public  Sector  Combinations"  (effective  for  annual  periods  beginning  on  or  after 
1 January  2019):  The  EAR  20,  which  is  based  on  the  IPSAS  40  "Public  Sector  Combinations", 
establishes the classification of a public sector combination into two different types depending on 
whether the transaction takes place under common control or not: (i) amalgamation, in which the 

14 

 
 
Annual accounts of the European Commission 2017 

transaction  is  based  on  the  carrying  amounts  of  the  entity  combined  with  the  EU;  and  (ii) 
acquisition,  in  which  the  transaction  is  based  on  the  acquisition  date  fair  values  of  the  entity 
acquired by the EU. Both have distinct requirements and levels of disclosure, in order to provide a 
better understanding of its effects to users of the financial statements of the EU.  

The impact on the EU financial statements in the year of initial application will depend on whether in 
that period the EU would enter into a public sector combination transaction. 

1.2.  ACCOUNTING PRINCIPLES 

The objective of 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:  fair  presentation,  accrual  basis,  going  concern,  consistency  of  presentation, 
materiality,  aggregation,  offsetting  and  comparative  information.  The  qualitative  characteristics  of 
financial  reporting  are  relevance,  faithful  representation  (reliability),  understandability,  timeliness, 
comparability and verifiability. 

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  and  1  associate.  Entities  that  fall  under  the  consolidation  scope,  but 
which are immaterial to the EU consolidated financial statements as a whole, need not be consolidated or 
accounted for using equity method where to do so would result in excessive time or cost to the EU. Those 
entities  are  referred  to  as  'Minor  entities'  and  are  separately  listed  in  note  9.  In  2017,  7  entities  have 
been classified as minor entities. 

Controlled entities 

The decision to include an entity in the scope of consolidation is based on the control concept. Controlled 
entities are all entities for which the EU is exposed, or has right, to variable benefits from its involvement 
and  has  the  ability  to  affect  the  nature  and  amount  of  those  benefits  through  its  power  over  the  other 
entity. This power must be presently exercisable and must relate to the relevant activities of the entity. 
Controlled  entities  are  fully  consolidated.  The  consolidation  begins  at  the  first  date  on  which  control 
exists, and ends when such control no longer exists. 

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 EU budget, the existence of voting rights in the 
governing bodies, audit by the European Court of Auditors 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  European  Central  Bank)  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. 

15 

 
 
 
Joint Arrangements 

Annual accounts of the European Commission 2017 

A joint arrangement is an agreement over which the EU and one or more parties have joint control. Joint 
control is contractually agreed sharing of control over an arrangement, which exists only when decisions 
about the relevant activities require the unanimous consent of parties sharing control. Joint agreements 
can  be  either  joint  operations  or  joint  ventures.  In  case  a  joint  arrangement  is  structured  through  a 
separate vehicle and parties to the joint arrangement have rights to the net assets of the arrangement, 
this  joint  arrangement  classifies  as  a  joint  venture.  Participations  in  joint  ventures  are  accounted  for 
using the equity method (see note 1.5.4). In case the parties have rights to the assets, and obligations 
for the liabilities, related to the arrangement, this joint arrangement is classified as a joint operation. In 
relation  to  its  interest  in  joint  operations,  the  EU  recognises  in  its  financial  statements:  its  assets  and 
liabilities,  revenue  and  expense,  as  well  as  its  share  of  assets,  liabilities,  revenue  and  expense  held  or 
incurred jointly. 

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 note 1.5.4). 

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 

Financial  statements  are  presented  annually.  The  accounting  year  begins  on  1  January  and  ends  on 
31 December. 

1.4.1.  Currency and basis for conversion 

Functional and reporting currency 

The financial statements are presented in millions of euros, unless stated otherwise, 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. Translation 
differences  on  non-monetary  financial  instruments  classified  as  available  for  sale  financial  assets  are 
included in the fair value reserve. 

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. 

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

Euro exchange rates  

Currency 
BGN 
CZK 
DKK 
GBP 
HRK 
HUF 

31.12.2017 
1.9558 
25.5350 
7.4449 
0.8872 
7.4400 
310.3300 

31.12.2016 
1.9558 
27.0210 
7.4344 
0.8562 
7.5597 
309.8300 

Currency 
PLN 
RON 
SEK 
CHF 
JPY 
USD 

31.12.2017 
4.177 
4.6585 
9.8438 
1.1702 
135.01 
1.1993 

31.12.2016 
4.4103 
4.5390 
9.5525 
1.0739 
123.4000 
1.0541 

16 

 
Annual accounts of the European Commission 2017 

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  revenue  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 
(3-11 years). 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  the  expenses  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: 

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

Straight line depreciation rate 

4 % to 10 % 
8 % to 25 % 
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 inception of 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 

17 

 
 
Annual accounts of the European Commission 2017 

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 

Investments  accounted for using the equity method are initially recognised at cost. The EU's interest in 
these  investments  is  recognised  in  the  statement  of  financial  performance,  and  its  share  in  the 
movements in reserves is recognised in the fair value reserve in net assets. 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  investment  in  the  financial  statements  at  the  balance  sheet 
date. Distributions received from the investment reduce the carrying amount of the asset. 

If the EU's share of deficits of an investment accounted for using the equity method equals or exceeds its 
interest  in  the  investment,  the  EU  discontinues  recognising  its  share  of  further  losses  ("unrecognised 
losses").  After  the  EU's  interest  is  reduced  to  zero,  additional  losses  are  provided  for  and  a  liability  is 
recognised, only to the extent that the EU has incurred legal or constructive obligation or made payments 
on behalf of the entity. 

If  there  are  indications  of  impairment,  a  write-down  to  the lower  recoverable  amount  is necessary.  The 
recoverable amount is determined as described under note 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. 

Associates and joint ventures classified as minor entities are not accounted for under the equity method. 
EU contributions to those entities are accounted for as an expense of the period.  

1.5.5. 

Financial assets 

Classification 

The  EU  classifies  their  financial  assets  in  the  following  categories:  financial  assets  at  fair  value  through 
surplus  or  deficit;  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. 

18 

 
Annual accounts of the European Commission 2017 

(i)  Financial assets at fair value through surplus or deficit 

A financial asset is classified in this category if acquired principally for the purpose of selling in the short 
term.  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. 

(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.  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  surplus  or  deficit,  held-to-maturity  and 
available for sale are recognised on trade-date –  the date on  which the EU commits to purchase or  sell 
the asset. Cash equivalents and 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 
surplus  or  deficit  transactions  costs  are  added  to  the  fair  value  at  initial  recognition.  Financial  assets 
carried at fair value through surplus or deficit are initially recognised at fair value and transaction costs 
are expensed in the statement of financial performance. 

The fair value of a financial asset on initial recognition is normally the transaction price (i.e. the fair value 
of the consideration received), unless the fair value of that instrument is evidenced by comparison with 
other observable current market transactions in the same instrument or based on a valuation technique 
whose  variables  include  only  data  from  observable  markets  (e.g.  in  case  of  some  derivative  contracts). 
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. 

19 

 
Annual accounts of the European Commission 2017 

 

 

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 

a)  Financial  assets  at  fair  value  through  surplus  or  deficit  are  subsequently  carried  at  fair  value. 
Gains and losses arising from changes in the fair value of the ‘financial instruments at fair value 
through surplus or deficit’ category are included in the statement of financial performance in the 
period in which they arise. 

b)  Loans  and  receivables  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. 

c)  Held to maturity assets are carried at amortised cost using the effective interest method. The EU 

currently holds no held to maturity investments. 

d)  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  and  over-the–counter  derivatives),  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.  

Investments in Venture Capital Funds, classified as available for sale financial assets, which do not have a 
quoted  market  price  in  an  active  market  are  valued  at  the  attributable  net  asset  value,  which  is 
considered as an equivalent of their fair value. 

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 

20 

 
Annual accounts of the European Commission 2017 

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. 

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. 

1.5.7. 

Pre-financing amounts 

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 

21 

 
Annual accounts of the European Commission 2017 

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,  i.e.  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 note 1.5.5). The financial instruments 
notes  disclosures  concerning  receivables  from  exchange  transactions  include  accrued  revenue  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  concerning  the  treatment  of  accrued  revenue  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 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. 

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, 

22 

 
Annual accounts of the European Commission 2017 

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  surplus  or  deficit,  financial 
liabilities carried at amortised cost or as financial guarantee liabilities. 

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. 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 surplus or deficit include derivatives which fair value 
is negative. They follow the same accounting treatment as financial assets at fair value through surplus 
or deficit, see note 1.5.5.  

Financial  guarantee  liabilities  are  initially  recognised  at  fair  value,  being  the  premium  received. 
Subsequently,  financial  guarantee  liabilities  are  measured  at  the  higher  of  the  best  estimate  of  the 
expenses  expected  to  be  required  to  settle  the  financial  guarantee  liability  and  the  amount  initially 
recognised  less,  when  appropriate,  cumulative  amortisation.  The  EU  recognises  a  financial  guarantee 
liability when it receives consideration for granting of the guarantee, that is at market terms, or when the 
fair value of the guarantee can be measured reliably. In case no active market for a directly equivalent 
guarantee contract exists, the EU discloses the guarantee given as a contingent liability (see note 1.7.2) 
or - when it is more likely than not that an outflow of resources will be required to settle the obligation – 
the EU recognises a provision (see note 1.5.11). 

Financial liabilities are classified as non-current liabilities, except for maturities less than 12 months after 
the balance sheet date.  

EU trust funds that are considered as part of the Commission's operational activities are accounted for in 
the  Commission  accounts  and  further  consolidated  in  the  EU  annual  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  financial  liabilities  until  the  conditions  attached  to  the 
contributions  transferred  are  met,  i.e.  eligible  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.  For  reporting 
purposes  the  net  expenses  are  allocated  to  the  contributions  of  other  donors  in  proportion  to  net 
contributions  paid  as  at  31  December.  This  allocation  of  contributions  is  only  indicative. When  the  trust 
fund is wound up the actual split of remaining resources will be decided by the trust fund board. 

1.5.13.  Payables 

A  significant  amount  of  the  payables  of  the  EU  are  unpaid  cost  claims  from  beneficiaries  of  grants  or 
other EU funding (non-exchange transactions). They are recorded as payables for the requested amount 

23 

 
Annual accounts of the European Commission 2017 

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. 

1.5.14.  Accrued and deferred revenue 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 revenue 
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.  By  analogy,  if 
payment has been made in advance for services or goods that have not yet been received, the expense 
will be deferred and recognised in the subsequent accounting period. 

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 revenue. 
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 
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: 

a)  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; 

24 

 
Annual accounts of the European Commission 2017 

b)  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. 

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 revenue and expense 

Interest  revenue  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 revenue 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 revenue is recognised using the rate of interest to discount the future cashflows 
for the purpose of measuring the impairment loss. 

Revenue from dividends 

Revenue  from  dividends  and  similar  distributions  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. 

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 

25 

 
Annual accounts of the European Commission 2017 

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. 

1.8.  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). 

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.  

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. 

26 

 
 
Annual accounts of the European Commission 2017 

2.  NOTES TO THE BALANCE SHEET  

ASSETS 

2.1.  INTANGIBLE ASSETS 

Gross carrying amount at 31.12.2016 
Additions 
Disposals 
Transfer between asset categories 
Other changes 
Gross carrying amount at 31.12.2017 
Accumulated amortisation at 31.12.2016 
Amortisation charge for the year 
Amortisation written back 
Disposals 
Transfer between asset categories 
Other changes 
Accumulated amortisation at 31.12.2017 
NET CARRYING AMOUNT AT 31.12.2017 
NET CARRYING AMOUNT AT 31.12.2016 

EUR millions 

 252 
 26 
 (1) 
 4 
 12 
 292 
 (116) 
 (27) 
– 
 2 
 (2) 
 (0) 
 (143) 
 149 
 135 

27 

 
 
 
 
 
 
2.2.  PROPERTY, PLANT AND EQUIPMENT 

Annual accounts of the European Commission 2017 

Plant and 
equipment 

Furniture and 
vehicles  

Computer 
hardware 

Gross carrying amount at 31.12.2016 
Additions 
Disposals 
Transfer between asset categories 
Other changes 
Gross carrying amount at 31.12.2017 
Accumulated depreciation at 31.12.2016 
Depreciation charge for the year 
Depreciation written back 
Disposals 
Transfer between asset categories 
Other changes 
Accumulated depreciation at 31.12.2017 

Land and 
buildings 

1 436 
 28 
 (20) 
 3 
 0 
1 448 
 (806) 
 (44) 
– 
 10 
 0 
 (0) 
 (840) 

Space 
assets 

3 602 
 0 
 (1) 
 641 
 21 
4 264 
 (300) 
 (480) 
– 
 1 
 0 
 (1) 
 (780) 

NET CARRYING AMOUNT AT 31.12.2017 
NET CARRYING AMOUNT AT 31.12.2016 

 608 
 631 

3 484 
3 302 

Other 

 155 
 4 
 (4) 
– 
 1 
 156 
 (112) 
 (13) 
– 
 4 
– 
 (0) 
 (121) 

 248 
 18 
 (19) 
 1 
 1 
 248 
 (201) 
 (24) 
– 
 19 
 (1) 
 (0) 
 (207) 

 41 
 47 

 35 
 43 

Finance 
leases  

Assets under 
construction 

EUR millions 
TOTAL 

1 550 
 8 
– 
 (5) 
– 
1 552 
 (705) 
 (53) 
– 
– 
 3 
– 
 (756) 

 797 
 844 

1 925 
1 265 
 (0) 
 (646) 
 0 
2 544 
– 
– 
– 
– 
– 
– 
– 

2 544 
1 925 

9 247 
1 333 
 (56) 
 (4) 
 24 
10 544 
(2 415) 
 (630) 
 (0) 
 46 
 2 
 (3) 
(3 000) 

7 544 
6 832 

 257 
 7 
 (6) 
 2 
 0 
 260 
 (233) 
 (12) 
 (0) 
 6 
 (0) 
 (0) 
 (240) 

 21 
 24 

 74 
 2 
 (6) 
– 
 0 
 71 
 (58) 
 (4) 
– 
 6 
– 
 (0) 
 (57) 

 14 
 16 

28 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

2.3.  INVESTMENTS ACCOUNTED FOR USING THE EQUITY 

METHOD 

The  participation  of  the  EU  represented  by  the  Commission  in  the  European  Investment  Fund  (EIF)  is 
treated  as  an  associate  using  the  equity  method  of  accounting.  At  31 December 2017,  the  EU  holds 
29.7 % of the ownership interest in EIF (2016: 28.1 %). 

Participation at 31.12.2016 
Contributions 
Dividends received 
Share of net result 
Share in the net assets 
Participation at 31.12.2017 

EIF summarised financial information: 

Assets 
Liabilities 
Revenue 
Expenses 
Surplus/(deficit) 

EUR millions 
European Investment Fund 
 528 
 44 
 (7) 
 21 
 (6) 
 581 

31.12.2017 
Total EIF 
2 488 
 (532) 
263 
 (153) 
110 

EUR millions 
31.12.2016 
Total EIF 
2 301 
 (423) 
240 
 (118) 
122 

Reconciliation of the above summarised financial information to the carrying amount of the interest held 
in the EIF is as follows: 

Net assets of the associate 
EC ownership interests in EIF 
Carrying amount 

31.12.2017 
1 956 
29.7% 
 581 

EUR millions 
31.12.2016 
1 878 
28.1% 
 528 

The Commission has paid-in 20 % of its subscribed shares in the EIF capital at 31 December 2017, the 
amount uncalled being as follows: 

Total share capital 
Paid-in 
Uncalled 

Total EIF capital 
4 500 
 (900) 
3 600 

EUR millions 
EU subscription 
1 337 
 (267) 
1 070 

29 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

2.4.  FINANCIAL ASSETS 

Note 

31.12.2017 

31.12.2016 

EUR millions 

Non-current financial assets 
Available for sale financial assets 
Financial assets at fair value through surplus or deficit 
Loans 

Current financial assets 
Available for sale financial assets 
Financial assets at fair value through surplus or deficit 
Loans 

2.4.1 
2.4.2 
2.4.3 

2.4.1 
2.4.2 
2.4.3 

Total 

10 410 
 16 
48 107 
58 533 

1 563 
 6 
6 770 
8 339 
66 872 

7 721 
– 
53 012 
60 733 

1 035 
 0 
2 260 
3 296 
64 029 

2.4.1. 

 Available for sale financial assets 

BUFI investments 
European Bank for Reconstruction and Development 

Guarantee Funds for budgetary guarantees: 
Guarantee Fund for external actions 
EFSI Guarantee Fund 

Financial instruments supported by the EU budget: 
Horizon 2020 
Risk Sharing Finance Facility 
Connecting Europe Facility 
ETF start up 
Risk Capital Operations 
European Fund for South East Europe 
Other 

Total 
Non-current 
Current 

31.12.2017 
2 158 
 188 
2 346 

EUR millions 
31.12.2016 
2 013 
 188 
2 201 

2 199 
3 414 
5 613 

1 730 
 665 
 482 
 483 
 113 
 119 
 422 
4 014 
11 973 
10 410 
1 563 

2 069 
 948 
3 017 

1 213 
 719 
 483 
 476 
 132 
 118 
 398 
3 539 
8 757 
7 721 
1 035 

2.4.2. 

Financial assets at fair value through surplus or deficit 

Type of derivative 

Foreign currency forward contract 
EFSI guarantee on equity portfolio 
Total 
Non-current 
Current 

31.12.2017 

Notional 
amount  
 634 
 258 
 892 
 258 
 634 

Fair value 

 6 
 16 
 23 
 16 
 6 

EUR millions 

31.12.2016 

Notional 
amount  
 50 
– 
 50 
– 
 50 

Fair value 

 0 
– 
 0 
– 
 0 

30 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value hierarchy of financial assets measured at fair value 

Annual accounts of the European Commission 2017 

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 

31.12.2017 
10 325 
 510 
1 161 

EUR millions 
31.12.2016 
7 224 
 231 
1 302 

11 996 

8 757 

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

Opening balance at 31.12.2016 
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 31.12.2017 

2.4.3. 

 Loans  

Loans for financial assistance 
Other loans 
Total 
Non-current 
Current 

Note 

31.12.2017 

2.4.3.1 
2.4.3.2 

54 744 
 133 
54 877 
48 107 
6 770 

2.4.3.1.  Loans for financial assistance 

EUR millions 

1 302 
 39 
 (21) 
 30 
– 
 (188) 
– 
1 161 

EUR millions 

31.12.2016 
54 944 
 328 
55 272 
53 012 
2 260 

Total at 31.12.2016 
New loans 
Repayments 
Exchange differences 
Changes in carrying amount 
Impairment 
Total at 31.12.2017 
Non-current 
Current 

EFSM 
47 456 
– 
– 
– 
 0 
– 
47 456 
42 300 
5 156 

BOP 
4 272 
– 
(1 150) 
– 
 (8) 
– 
3 114 
1 700 
1 414 

MFA 
2 964 
1 013 
 (58) 
– 
 5 
– 
3 924 
3 846 
 78 

Euratom 
 252 
 50 
 (51) 
 (1) 
 0 
– 
 250 
 203 
 47 

EUR millions 
Total 
54 944 
1 063 
(1 260) 
 (1) 
 (3) 
– 
54 744 
48 049 
6 695 

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

Nominal  value  of  loans  for  financial  assistance  at  31  December  2017  total  EUR 54  000 million  (2016: 
EUR 54 198 million). 

31 

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

Annual accounts of the European Commission 2017 

Macro Financial Assistance (MFA) 
Euratom 
Balance of Payment (BOP) 
European Financial Stability Mechanism (EFSM) 

31.12.2017 
0 % - 4.54 % 
0.08 % - 5.76 % 
2.88 % - 3.38 % 
0.62 % - 3.75 % 

31.12.2016 
0 % - 4.54 % 
0 % - 5.76 % 
2.37 % - 3.37 % 
0.62 % - 3.75 % 

2.4.3.2.  Other loans 

Loans with special conditions 
Term deposits over 3 months 
Total 
Non-current 
Current 

31.12.2017 
 78 
 55 
 133 
 59 
 75 

EUR millions 
31.12.2016 
 93 
 235 
 328 
 74 
 254 

Nominal value of other loans at 31 December 2017 total EUR 557 million (2016: EUR 668 million). 

Impairment on other loans 

31.12.2016 

Additions 

Reversals 

Write-off  

Other 

Loans with special 
conditions 
Subrogated loans 

Total 

 7 

 332 

 339 

 0 

 100 

 101 

– 

 (0) 

 (0) 

– 

– 

– 

EUR millions 
31.12.2017 

 8 

 432 

 440 

– 

– 

– 

2.5. 

 PRE-FINANCING 

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

Current pre-financing 
Pre-financing 
Other advances to Member States 

Total 

Note 

31.12.2017 

31.12.2016 

EUR millions 

2.5.1 
2.5.2 

2.5.1 
2.5.2 

21 663 
3 018 
 64 
24 745 

22 908 
1 645 
24 552 
49 297 

20 095 
1 651 
 31 
21 777 

21 781 
2 183 
23 964 
45 741 

32 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

2.5.1. 

Pre-financing 

Shared Management 

EAFRD & other 
rural 
development 
instruments 
ERDF & CF 

ESF 

Other 

Direct Management 

Implemented by:  

Commission 

EU executive 
agencies 
Trust funds 

Indirect Management 

Implemented by: 

Other EU 
agencies & bodies 
Third countries 

International 
organisations 
Other entities 

Total 

Non-current 

Current 

Gross 
amount 

Cleared via 
cut-off 

Net amount at 
31.12.2017 

Gross 
amount 

Cleared via 
cut-off 

EUR millions 
Net amount at 
31.12.2016 

3 735 

3 735 

3 955 

– 

3 955 

20 561 

6 792 

5 037 

(5 678) 

(1 182) 

(2 267) 

14 883 

5 610 

2 770 

19 858 

6 477 

4 219 

(4 727) 

 (617) 

(2 393) 

12 454 

13 845 

(8 587) 

(8 751) 

 440 

 (212) 

3 867 

5 094 

 228 

12 710 

13 138 

(9 077) 

(8 349) 

 142 

 (82) 

3 767 

(2 951) 

 816 

2 790 

(2 110) 

1 586 

9 001 

 (956) 

(5 879) 

7 752 

(3 936) 

84 969 

(40 399) 

21 663 

63 307 

– 

(40 399) 

 630 

3 121 

3 816 

44 570 

21 663 

22 908 

1 861 

7 230 

(1 135) 

(4 432) 

6 496 

(4 077) 

78 876 

(37 000) 

20 095 

58 781 

– 

(37 000) 

15 131 

5 860 

1 826 

3 633 

4 789 

 60 

 680 

 726 

2 797 

2 418 

41 876 

20 095 

21 781 

2.5.2.  Other advances to Member States 

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

31.12.2017 
2 768 

EUR millions 
31.12.2016 
2 534 

1 895 
4 663 
3 018 
1 645 

1 300 
3 834 
1 651 
2 183 

33 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

2.6.  EXCHANGE RECEIVABLES AND NON-EXCHANGE 

RECOVERABLES 

Note 

31.12.2017 

31.12.2016 

EUR millions 

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

Current 
Recoverables from non-exchange transactions 
Receivables from exchange transactions 

2.6.1 
2.6.2 

2.6.1 
2.6.2 

Total 

2.6.1. 

 Recoverables from non-exchange transactions 

 616 
 3 
 619 

10 924 
 497 
11 421 
12 040 

 727 
 2 
 729 

10 266 
 341 
10 607 
11 336 

Non-current 
Member States 
Accrued income and deferred charges 
Other recoverables 

Current 
Member States 
Competition fines 
Accrued income and deferred charges 
Other recoverables 

Total 

Note 

31.12.2017 

31.12.2016 

EUR millions 

2.6.1.1 
2.6.1.3 

2.6.1.1 
2.6.1.2 
2.6.1.3 

 594 
– 
 22 

 616 

6 123 
4 225 
 384 
 192 

10 924 

11 540 

 700 
– 
 27 

 727 

8 122 
1 808 
 153 
 182 

10 266 

10 993 

34 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.6.1.1.  Recoverables from Member States 

Annual accounts of the European Commission 2017 

Recoverables related to own resources: 
Established in the A account 
Established in the separate account 
Own resources to be received 
Impairment 
Other 
Own resource recoverables 
Recoverables in the area of agriculture and rural 
development: 
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 

2.6.1.2.  Recoverables from competition fines 

Recoverable from fines gross amount 
Provisional payments 
Impairment 
Total 
Non-current 
Current 

31.12.2017 

EUR millions 
31.12.2016 

3 113 
1 617 
 46 
 (997) 
 56 
3 836 

2 280 
 955 
 16 
 136 

 (804) 
2 583 
 182 
 22 
 94 
6 717 
 594 
6 123 

3 261 
1 437 
1 764 
 (753) 
 36 
5 745 

2 606 
 924 
 30 
 167 

 (999) 
2 729 
 293 
 17 
 39 
8 822 
 700 
8 122 

31.12.2017 
7 679 
(3 282) 
 (172) 
4 225 
– 
4 225 

EUR millions 
31.12.2016 
6 510 
(4 524) 
 (178) 
1 808 
– 
1 808 

2.6.1.3.  Accrued income and deferred charges 

Financial corrections 
Other accrued income 
Deferred charges relating to non-exchange transactions 
Total 
Non-current 
Current 

31.12.2017 
 1 
 322 
 61 
 384 
– 
 384 

EUR millions 
31.12.2016 
 9 
 70 
 74 
 153 
– 
 153 

35 

 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

2.6.2.  Receivables from exchange transactions 

Non-current 
Other receivables 

Current 
Customers 
Impairment on receivables from customers 
Deferred charges relating to exchange transactions 
Others 

Total 

2.7.  INVENTORIES 

Scientific materials 
Other 
Total 

2.8.  CASH AND CASH EQUIVALENTS 

Accounts with Treasuries and Central Banks 
Current accounts 
Imprest accounts 
Transfers (cash in transit) 
Bank accounts for budget implementation 
Cash belonging to financial instruments 
Cash relating to fines 
Cash relating to trust funds 
Total 

31.12.2017 

EUR millions 
31.12.2016 

 3 
 3 

 184 
 (136) 
 172 
 277 
 497 
 501 

 2 
 2 

 189 
 (124) 
 162 
 114 
 341 
 343 

31.12.2017 
 45 
 18 
 62 

EUR millions 
31.12.2016 
 54 
 21 
 75 

31.12.2017 
20 078 
 152 
 5 
 0 
20 236 
1 608 
1 234 
 34 
23 113 

EUR millions 
31.12.2016 
24 566 
 127 
 5 
– 
24 698 
1 390 
1 325 
 167 
27 579 

36 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

LIABILITIES 

2.9.  PENSION AND OTHER EMPLOYEE BENEFITS 

Net employee benefit scheme liability 

Pension 
Scheme 
of 
European 
Officials 
63 951 
N/A 
63 951 

Other 
retirement 
benefit 
schemes 

Joint 
Sickness 
Insurance 
Scheme 

31.12.2017 
Total 

EUR millions 
31.12.2016 
Total 

1 089 
N/A 
1 089 

7 756 
 (301) 
7 455 

72 796 
 (301) 
72 495 

66 844 
 (293) 
66 550 

Defined Benefit Obligation 
Plan assets 
Net liability 

Actuarial assumptions - employee benefits 

Pension Scheme 
of European 
Officials 

Joint Sickness 
Insurance 
Scheme 

2017 
Nominal discount rate  
Expected inflation rate  
Real discount rate 
Expected rate of salary increases 
Medical cost trend rates 
Retirement age 
2016 
Nominal discount rate  
Expected inflation rate  
Real discount rate 
Expected rate of salary increases 
Medical cost trend rates 
Retirement age 

1.9 % 
1.5 % 
0.4 % 
1.8 % 
N/A 
63/64/66 

1.7 % 
1.4 % 
0.3 % 
1.2 % 
N/A 
63/64/66 

Movement in present value of employee benefits defined benefit obligation 

2.0 % 
1.6 % 
0.4 % 
1.7 % 
3.0 % 
63/64/66 

1.9 % 
1.5 % 
0.4 % 
1.1 % 
3.0 % 
63/64/66 

EUR millions 

Present value as at 
31.12.2016 
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 
31.12.2017 

Pension 
Scheme of 
European 
Officials  

58 746 

Other 
retirement 
benefit 
Schemes 
1 062 

Joint Sickness 
Insurance 
Scheme 

Total 

7 036 

66 844 

2 637 
1 148 
3 616 
– 
(1 417) 
 (778) 

 84 
 19 
 (48) 
– 
 (28) 
 1 

 266 
 134 
 394 
 21 
 (94) 
– 

2 986 
1 300 
3 962 
 21 
(1 539) 
 (777) 

63 951 

1 089 

7 756 

72 796 

37 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Movement in present value of plan assets of the Joint Sickness Insurance Scheme  

Annual accounts of the European Commission 2017 

Present value as at 31.12.2016 
Net movement in plan assets 
Present value as at 31.12.2017 

5 year trend 

Present value of the defined 
benefit obligation 
Fair value of plan assets 
Employee benefits liability 

EUR millions 

 293 
 8 
 301 

EUR millions 
2017 
72 796 

2013 
46 367 

2014 
58 317 

2015 
63 488 

2016 
66 844 

 (264) 
46 103 

 (272) 
58 045 

 (280) 
63 208 

 (293) 
66 550 

 (301) 
72 495 

Amounts recognised in the Statement of Financial Performance 

2017 
Current service cost 
Interest cost 
Past service cost 
Change in plan assets 
Staff and pension costs 
Actuarial gains and losses 
Total  

Pension 
Scheme of 
European 
Officials 

Other 
retirement 
benefit 
Schemes 

Joint 
Sickness 
Insurance 
Scheme 

EUR millions 
Total 

2 360 
1 027 
– 
– 
3 387 
3 236 
6 623 

 85 
 19 
– 
– 
 104 
 (49) 
 55 

 266 
 134 
– 
 (81) 
 318 
 394 
 712 

2 710 
1 180 
– 
 (81) 
3 809 
3 580 
7 390 

Joint Sickness Insurance Scheme sensitivity 

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 

2.10.  PROVISIONS 

One percentage 
point increase 
 166 

EUR millions 
One percentage 
point decrease 
 (141) 

2 538 

(1 867) 

Amount at 
31.12.2016 

Additional 
provisions 

Unused 
amounts 
reversed 

Amounts 
used 

Transfer 
between 
categories 

EUR millions 

Change in 
estimation 

Amount at 
31.12.2017 

 149 
 217 
 14 
1 113 

 880 
 23 
 16 
2 412 
1 786 

 49 
 2 
 18 
- 

 378 
 7 
 74 
 529 
 325 

 (26) 
- 
 (3) 
- 

 (46) 
 (4) 
 (1) 
 (80) 
 (30) 

 (122) 
 (198) 
 (1) 
 (32) 

 (94) 
- 
 (2) 
 (449) 
 (128) 

- 
- 
- 
- 

- 
- 
- 
– 
 (188) 

- 
- 
0 
 853 

 (3) 
- 
- 
 849 
 852 

 49 
 20 
 29 
1 934 

1 115 
 27 
 87 
3 262 
2 617 

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

Current 

 626 

 204 

 (50) 

 (321) 

 188 

 (3) 

 645 

38 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

2.11.  FINANCIAL LIABILITIES 

Non-current financial liabilities 
Financial liabilities at amortised cost 
Financial liabilities at fair value through surplus or 
deficit 

Note 

31.12.2017 

31.12.2016 

EUR millions 

2.11.1 
2.11.2 

49 412 
 2 

54 375 
– 

Current financial liabilities 
Financial liabilities at amortised cost 
Financial liabilities at fair value through surplus or 
deficit 

2.11.1 
2.11.2 

Total 

49 414 

54 375 

6 813 
– 

6 813 
56 227 

2 164 
 1 

2 165 
56 540 

2.11.1.  Financial liabilities at amortised cost  

Borrowings for financial assistance 
Other financial liabilities 

Total 

Non-current 
Current 

2.11.1.1.  Borrowings for financial assistance 

Note 
2.11.1.1 
2.11.1.2 

31.12.2017 
54 744 
1 482 

56 225 

49 412 
6 813 

EUR millions 

31.12.2016 
54 944 
1 596 

56 540 

54 375 
2 164 

Total at 31.12.2016 
New borrowings 
Repayments 
Exchange differences 
Changes in carrying amounts 
Total at 31.12.2017 
Non-current 
Current 

EFSM 
47 456 
– 
– 
– 
 0 
47 456 
42 300 
5 156 

BOP 
4 272 
– 
(1 150) 
– 
 (8) 
3 114 
1 700 
1 414 

MFA 
2 964 
1 013 
 (58) 
– 
 5 
3 924 
3 846 
 78 

Euratom 
 252 
 50 
 (52) 
 (1) 
– 
 250 
 203 
 47 

EUR millions 
Total 
54 944 
1 063 
(1 260) 
 (1) 
 (3) 
54 744 
48 049 
6 695 

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

Macro Financial Assistance (MFA) 
Euratom 
Balance of Payment (BOP) 
European Financial Stability Mechanism (EFSM) 

31.12.2017 
0 % - 4.54 % 
0 % - 5.68 % 
2.88 % - 3.38 % 
0.62 % - 3.75 % 

31.12.2016 
0 % - 4.54 % 
0 % - 5.68 % 
2.37 % - 3.37 % 
0.62 % - 3.75 % 

39 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.11.1.2.  Other financial liabilities 

Annual accounts of the European Commission 2017 

Non-current 
Finance lease liabilities 
Buildings paid for in instalments 
Other 

Current 
Finance lease liabilities 
Buildings paid for in instalments 
Fines to be reimbursed 
Other 

Total 

Finance lease liabilities 

Land and buildings 
Other fixed assets 
Total at 31.12.2017 
Interest element 
Total future minimum lease 
payments at 31.12.2017 
Total future minimum lease payments     
at 31.12.2016 

31.12.2017 

EUR millions 
31.12.2016 

 918 
 258 
 188 
1 363 

 58 
 22 
 13 
 25 
 118 
1 482 

 969 
 279 
 190 
1 438 

 54 
 20 
 25 
 59 
 158 
1 596 

< 1 year 

Future amounts to be paid 
> 5 years 

1 - 5 years 

 54 
 4 
 58 
 54 
 113 

 111 

 258 
 8 
 266 
 181 
 447 

 442 

 652 
– 
 652 
 169 
 821 

 931 

EUR millions 

Total 
Liability 
 964 
 12 
 976 
 405 
1 381 

1 484 

2.11.2.  Financial liabilities at fair value through surplus and deficit  

Type of derivative 

Foreign currency forward contract 
FX option (put spread) 
Total 
Non-current 
Current 

31.12.2017 

EUR millions 

31.12.2016 

Notional 
amount  
– 
 9 
 9 
 9 
– 

Fair value 

– 
 2 
 2 
 2 
– 

Notional 
amount  
 101 
– 
 101 
– 
 101 

Fair value 

 1 
– 
 1 
– 
 1 

At 31 December 2017 all financial liabilities at fair value through surplus or deficit were categorised into 
level 2 of fair value hierarchy (valuation based on observable inputs other than quoted prices).  

40 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

2.12.  PAYABLES 

Gross 
Amount 

Adjust- 
ments* 

Net Amount at 
31.12.2017 

Gross 
Amount 

Adjust- 
ments* 

EUR millions 
Net Amount at 
31.12.2016 

Cost claims and 
invoices received 
from: 
Member States 

EAFRD & other 
rural development 
instruments 
ERDF & CF 

ESF 

Other 

Private and public 
entities 
Total costs 
claims & invoices 
received 
EAGF 

Own Resources 
Payables 
Sundry Payables 

Total 

 481 

12 602 

4 183 

 748 

1 563 

 481 

 500 

 (34) 

 467 

 (883) 

 (264) 

 (280) 

 (144) 

11 719 

10 663 

3 919 

 467 

1 419 

4 145 

 795 

1 677 

 (793) 

 (95) 

 (47) 

 (169) 

9 871 

4 050 

 748 

1 507 

19 577 

(1 571) 

18 006 

17 781 

(1 138) 

16 643 

11 534 

8 836 

1 000 

40 947 

N/A 

N/A 

N/A 

(1 571) 

11 534 

8 836 

1 000 

39 376 

12 193 

10 441 

 962 

N/A 

N/A 

N/A 

41 378 

(1 138) 

12 193 

10 441 

 962 

40 240 

* Estimated non-eligible amounts and pending other advances to Member States.  

2.13.  ACCRUED CHARGES AND DEFERRED INCOME 

Accrued charges 
Deferred income 
Other 
Total 

The split of accrued charges is as follows: 

EAGF 
EAFRD and other rural development instruments 
ERDF and CF 
ESF 
Other 
Total 

31.12.2017 
63 070 
 219 
 24 
63 314 

31.12.2017 
33 303 
17 464 
4 249 
2 870 
5 185 
63 070 

EUR millions 
31.12.2016 
66 310 
 690 
 26 
67 027 

EUR millions 
31.12.2016 
33 033 
17 024 
7 157 
3 473 
5 623 
66 310 

41 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

NET ASSETS 

2.14.  RESERVES 

Fair value reserve 
Guarantee Fund reserve 
Other reserves 
Total 

2.14.1.   Fair value reserve 

Note 
2.14.1 

31.12.2017 
 275 
2 663 
 125 
3 062 

EUR millions 

31.12.2016 
 311 
2 643 
 77 
3 031 

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

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

2017 
 (8) 
 18 
 10 

EUR millions 
2016 
 25 
 0 
 25 

2.15.  AMOUNTS TO BE CALLED FROM MEMBER STATES 

Amounts to be called from Member States at 31.12.2016 
Return of 2016 budget surplus to Member States 
Movement in Guarantee Fund reserve 
Other reserve movements 
Economic result of the year 
Total amounts to be called from Member States at 31.12.2017 

EUR millions  

79 546 
6 405 
 20 
 7 
(7 901) 
78 077 

42 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

3.  NOTES TO THE STATEMENT OF FINANCIAL 

PERFORMANCE  

REVENUE 

REVENUE FROM NON-EXCHANGE TRANSACTIONS:  
OWN RESOURCES 

3.1.  TRADITIONAL OWN RESOURCES 

Customs duties 
Sugar levies 
Total 

2017 
20 475 
 45 
20 520 

EUR millions 
2016 
20 301 
 138 
20 439 

REVENUE FROM NON-EXCHANGE TRANSACTIONS: 
TRANSFERS 

3.2.  RECOVERY OF EXPENSES 

Shared management 
Direct management 
Indirect management 
Total 

2017 
1 775 
 81 
 23 
1 879 

EUR millions 

2016 
1 876 
 56 
 15 
1 946 

3.3.  OTHER REVENUE FROM NON-EXCHANGE 

TRANSACTIONS 

Budgetary adjustments 
Contribution of third countries and accession countries 
Contribution from Member States for external aid 
Staff taxes and contributions 
Transfer of assets 
Adjustment of provisions 
Agricultural levies 
Funding of institutions 
Other 
Total 

2017 
5 806 
1 256 
 988 
 923 
 208 
 28 
 4 
(3 371) 
 672 
6 515 

EUR millions 
2016 
1 956 
 946 
 732 
 901 
 147 
 14 
 5 
(3 324) 
 318 
1 695 

43 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

REVENUE FROM EXCHANGE TRANSACTIONS  

3.4.  FINANCIAL REVENUE 

Interest on: 
  Loans 
  Late payments 
  Other  
Premium on financial guarantee liability (EFSI) 
Financial revenue from financial assets or liabilities at fair 
value through surplus or deficit 
Realised gains on sale of available for sale financial assets 
Dividend  
Other financial revenue 
Total 

2017 

1 371 
 217 
 36 
 61 
 57 

 26 
 23 
 28 
1 820 

EUR millions 
2016 

1 436 
 108 
 31 
 16 
 (0) 

 29 
 13 
 112 
1 745 

3.5.  OTHER REVENUE FROM EXCHANGE TRANSACTIONS 

Foreign exchange gains 
Fee and premium revenue related to financial instruments 
Sales of goods 
Share of net result of EIF 
Property, plant and equipment related revenue 
Other 
Total 

2017 
 266 
 51 
 26 
 21 
 6 
 321 
 692 

EUR millions 
2016 
 320 
 48 
 14 
 2 
3 
 262 
 649 

EXPENSES 

3.6.  SHARED MANAGEMENT 

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 
Total 

3.7. 

 DIRECT MANAGEMENT 

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

44 

2017 
44 289 
11 359 

17 650 
7 353 
1 253 
81 905 

2017 
8 855 
6 700 
 208 
15 763 

EUR millions 
2016 
44 152 
12 604 

35 045 
9 366 
1 606 
102 772 

EUR millions 
2016 
9 287 
6 260 
 97 
15 644 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

3.8. 

 INDIRECT MANAGEMENT 

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

3.9.  STAFF AND PENSION COSTS 

Staff costs 
Pension costs 
Total 

3.10.  FINANCE COSTS 

Interest expenses: 
        Borrowings 
        Other  
Finance leases 
Impairment losses on available for sale financial assets 
Impairment loss on loans and receivables 
Realised loss on sale of available for sale financial assets 
Loss on financial assets or liabilities at fair value through 
surplus or deficit 
Other finance costs 
Total 

3.11.  OTHER EXPENSES 

Adjustment of provisions 
Property, plant and equipment related expenses 
Administrative and IT expenses 
Funding and contributions to other EU bodies 
Foreign exchange losses 
Operating lease expenses 
Reduction of fines by the Court of Justice 
Other 
Total 

Expenses relating to research and development are as follows: 

Research costs 
Non-capitalised development costs 
Total 

45 

2017 
3 429 
1 101 
3 014 
1 478 
9 022 

2017 
3 186 
3 809 
6 995 

2017 

1 363 
 21 
 56 
 39 
 324 
 2 
 12 

 33 
1 849 

2017 
1 371 
 870 
 790 
 458 
 429 
 160 
 67 
 495 
4 642 

2017 
 366 
 58 
 424 

EUR millions 
2016 
3 064 
 876 
2 382 
2 035 
8 358 

EUR millions 
2016 
3 218 
3 693 
6 911 

EUR millions 
2016 

1 426 
 56 
 39 
 40 
 184 
 0 
 1 

 111 
1 857 

EUR millions 
2016 
 680 
 570 
 713 
 425 
 491 
 156 
 18 
 408 
3 462 

EUR millions  
2016 
 338 
 43 
 381 

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

Annual accounts of the European Commission 2017 

Smart and 
inclusive 
growth 

Sustainable 
growth 

Security 
and 
citizenship 

Global 
Europe 

Administration 

GNI resources 
Traditional own resources 
VAT 
Fines 
Recovery of expenses 
Other 
Non-exchange revenue 
Financial revenue 
Other 
Exchange revenue 

Total revenue 

Expenses implemented by Member States: 
     EAGF 
     EAFRD & other rural develop. instruments 
     ERDF & CF 
     ESF 
     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 
Other expenses 

Total expenses 
Economic result of the year 

– 
– 
– 
– 
 357 
1 172 
1 529 
 147 
 196 
 343 

1 873 

– 
– 
(17 650) 
(7 353) 
 (439) 
(9 809) 

(2 530) 
 (434) 

 (819) 
(1 638) 
– 

 (88) 
(2 453) 

(43 213) 
(41 341) 

– 
– 
– 
– 
1 488 
 244 
1 732 
 (4) 
 (12) 
 (15) 

1 716 

(44 289) 
(11 359) 
– 
– 
 74 
 (525) 

 (121) 
 0 

 15 
 (360) 
– 

 (16) 
 (88) 

– 
– 
– 
– 
 5 
 43 
 48 
 0 
 (6) 
 (6) 

 42 

– 
– 
– 
– 
 (897) 
(1 080) 

 (754) 
 (177) 

 1 
 (426) 
– 

 (0) 
 (196) 

– 
– 
– 
– 
 28 
 414 
 443 
 17 
 10 
 27 

 470 

– 
– 
– 
– 
 9 
(4 337) 

 (24) 
(3 504) 

 (675) 
 (615) 
– 

 (18) 
 (113) 

(56 669) 
(54 953) 

(3 528) 
(3 486) 

(9 277) 
(8 807) 

* "Not assigned to MFF headings" includes off-budget operations and unallocated programmes with immaterial amounts. 

46 

Not 
assigned 
to MFF 
headings* 
78 620 
20 520 
16 947 
4 664 
– 
3 759 
124 510 
1 659 
 261 
1 920 

– 
– 
– 
– 
– 
 884 
 884 
 0 
 242 
 242 

1 126 

126 430 

– 
– 
– 
– 
– 
 (12) 

– 
– 

 (0) 
(3 956) 
(3 581) 

 (72) 
(1 365) 

(8 986) 
(7 860) 

– 
– 
– 
– 
 0 
 0 

– 
– 

– 
– 
– 

(1 655) 
 (427) 

(2 082) 
124 348 

EUR millions 

Total 

78 620 
20 520 
16 947 
4 664 
1 879 
6 515 
129 145 
1 820 
 692 
2 511 

131 657 

(44 289) 
(11 359) 
(17 650) 
(7 353) 
(1 253) 
(15 763) 

(3 429) 
(4 115) 

(1 478) 
(6 995) 
(3 581) 

(1 849) 
(4 642) 

(123 756) 
7 901 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

4. 

CONTINGENT LIABILITIES AND ASSETS 

4.1.  CONTINGENT LIABILITIES 

4.1.1.  Budgetary guarantees 

EIB external lending 
mandate guarantees 
EFSI guarantee 

Total 

Ceiling 

37 479 

16 000 

53 479 

31.12.2017 

Signed 

28 950 

13 473 

42 423 

Disbursed 

19 972 

10 128 

30 100 

Ceiling 

40 645 

16 000 

56 645 

31.12.2016 

Signed 

30 161 

11 245 

41 406 

EUR millions 

Disbursed 

21 145 

4 392 

25 537 

4.1.2.  Guarantees relating to financial assistance (borrowing and lending activities) 

31.12.2017 

31.12.2016 

  Drawn 

  Undrawn 

Total 

  Drawn 

  Undrawn 

Total 

47 456 

3 114 

3 924 

 250 

54 744 

– 

– 

 460 

 250 

 710 

47 456 

47 456 

3 114 

4 384 

 500 

4 272 

2 964 

 252 

55 454 

54 944 

– 

– 

1 313 

 300 

1 613 

47 456 

4 272 

4 277 

 552 

56 557 

EUR millions 

EFSM 

BOP 

MFA 

Euratom 

Total 

4.1.3.  Guarantees given for EU financial instruments 

Horizon 2020 
Risk Sharing Finance Facility 
Connecting Europe Facility 
Other 
Total 

4.1.4. 

Legal cases 

Fines 
Agriculture 
Cohesion 
Other 
Total 

4.2.  CONTINGENT ASSETS 

Guarantees received: 
   Performance guarantees 
   Other guarantees 
Other contingent assets 
Total 

47 

31.12.2017 
1 297 
 654 
 490 
 32 
2 473 

31.12.2017 
3 242 
1 737 
 3 
 438 
5 420 

EUR millions 
31.12.2016 
 921 
 711 
 465 
 3 
2 101 

EUR millions 

31.12.2016 
1 834 
1 711 
 3 
 506 
4 054 

31.12.2017 

EUR millions 
31.12.2016 

 89 
 5 
 32 
125 

121 
6 
33 
160 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

5.  BUDGETARY AND LEGAL COMMITMENTS 

Outstanding budgetary commitments not yet 
expensed 
Shared management legal commitments under the 
current MFF pending implementation 
Significant legal commitments in other areas 
Total 

Note 
5.1 

5.2 

5.3 

31.12.2017 
220 479 

EUR millions 

31.12.2016 
188 828 

211 688 

276 351 

16 267 
448 434 

18 338 
483 517 

5.1.  OUTSTANDING BUDGETARY COMMITMENTS NOT YET 

EXPENSED 

Outstanding budgetary commitments not yet expensed 

31.12.2017 
220 479 

EUR millions 
31.12.2016 
188 828 

5.2.  SHARED MANAGEMENT LEGAL COMMITMENTS UNDER 
THE CURRENT MFF PENDING IMPLEMENTATION  

Budget 
available 
under MFF 
(=A-C) 

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

121 756 

121 756 

40 178 

1 699 

40 178 

1 699 

163 633 

163 633 

42 942 

42 942 

2 539 

2 539 

45 482 

45 482 

2 597 

1 311 

3 908 

1 439 

1 134 

2 573 

213 023 

211 688 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

Financial 
framework 
2014-2020 
(A) 

Legal 
commitments 
concluded (B) 

Budget 

commitments    

(C ) 

Decommit-   
ments (D) 

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 

262 058 

262 058 

140 302 

91 991 

3 814 

91 991 

3 814 

51 813 

2 114 

357 862 

357 862 

194 229 

99 343 

99 343 

56 401 

5 749 

5 749 

3 210 

105 093 

105 093 

59 611 

5 391 

2 812 

8 202 

4 233 

2 635 

6 868 

2 794 

1 500 

4 294 

Total 

471 157 

469 822 

258 134 

48 

 
  
 
 
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

5.3.  SIGNIFICANT LEGAL COMMITMENTS IN OTHER AREAS 

Connecting Europe Facility 
Copernicus 
Galileo  
Fisheries agreements 
Operating lease commitments 
Other contractual commitments 
Total 

5.3.1.  Operating lease commitments 

Note 

5.3.1 

31.12.2017 
12 676 
1 841 
 253 
 133 
 868 
 497 
16 267 

EUR millions 

31.12.2016 
13 799 
2 393 
 523 
 247 
 891 
 485 
18 338 

Future amounts to be paid 

EUR millions 

Buildings 
IT materials and other equipment 
Total 

< 1 year 
 133 
 2 
 134 

1- 5 years 
 381 
 3 
 384 

> 5 years 
 350 
 0 
 350 

Total 
 864 
 4 
 868 

49 

 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

6. 

FINANCIAL INSTRUMENTS DISCLOSURES 

6.1.  CURRENCY RISKS 

Exposure of the EC to currency risk at year end – net position 

USD 

GBP 

DKK 

31.12.2017 
SEK 

EUR 

Other 

Total 

EUR millions 

Financial assets 
Available for sale financial assets 
Financial assets at fair value 
through surplus or deficit 
Loans* 
Receivables and recoverables 
Cash and cash equivalents 

Financial liabilities 
Financial liabilities at fair value 
through surplus or deficit 
Payables 

Total 

 680 
 (632) 

 6 
– 
 42 
 97 

– 

 (0) 
 (0) 
 96 

 57 
– 

– 
 550 
3 178 
3 785 

 17 
– 

– 
 62 
 27 
 105 

 56 
– 

– 
 86 
 693 
 834 

11 147 
 655 

 120 
11 338 
17 509 
40 768 

 16 
– 

 7 
 6 
1 664 
1 693 

11 973 
 23 

 133 
12 040 
23 113 
47 282 

– 

– 

– 

– 

 (2) 

 (2) 

 (0) 
 (0) 
3 785 

– 
– 
 105 

 (1) 
 (1) 
 833 

(39 374) 
(39 374) 
1 395 

 (1) 
 (3) 
1 690 

(39 376) 
(39 378) 
7 904 

Financial assets 
Available for sale financial assets 
Financial assets at fair value 
through surplus or deficit 
Loans* 
Receivables and recoverables 
Cash and cash equivalents 

Financial liabilities 
Financial liabilities at fair value 
through surplus or deficit 
Payables 

– 
– 
3 041 
Total 
* Excluding back-to-back loans for financial assistance.  

 (0) 
 (101) 
 113 

USD 

GBP 

DKK 

31.12.2016 
SEK 

EUR 

Other 

Total 

EUR millions 

 228 
 (49) 

 4 
– 
 31 
 213 

 58 
– 

– 
 591 
2 392 
3 041 

 14 
– 

– 
 49 
 426 
 490 

 42 
– 

– 
 80 
1 220 
1 341 

8 394 
 50 

 21 
– 

 315 
10 611 
21 423 
40 793 

 10 
 4 
2 087 
2 122 

8 757 
 0 

 328 
11 336 
27 579 
48 001 

 (100) 

– 

– 

– 

 100 

– 

 (1) 

– 
– 
 490 

– 
– 
1 341 

(40 240) 
(40 141) 
 652 

 (0) 
 (0) 
2 122 

(40 240) 
(40 241) 
7 760 

If  the  EUR  had  strengthened  against  the  currency  concerned  by  10 %  then  this  would  have  had  the 
following impact: 

2017 
2016 

2017 
2016 

EUR millions 

Economic result 

USD 
 (3) 
 (3) 

GBP 

 (339) 
 (271) 

DKK 

 (8) 
 (43) 

SEK 

 (71) 
 (118) 

EUR millions 

Net assets 
GBP 

 (5) 
 (5) 

DKK 

 (2) 
 (1) 

SEK 

 (5) 
 (4) 

USD 
 (5) 
 (7) 

50 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

If the EUR had weakened against the currency concerned by 10 % then this would have had the following 
impact: 

2017 
2016 

2017 
2016 

Economic result 

GBP 

 414 
 331 

Net assets 
GBP 
 6 
 6 

DKK 
 10 
 53 

DKK 
 2 
 2 

EUR millions 

SEK 
 86 
 144 

EUR millions 

SEK 
 6 
 5 

USD 
 4 
 4 

USD 
 7 
 9 

6.2.  INTEREST RATE RISK 

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

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

EUR millions 
Effect on 
economic result 
and net assets 
 (305) 
 324 
 (238) 
 254 

2017: Available for sale financial assets 

2016: Available for sale financial assets 

6.3.  CREDIT RISK 

Analysis of the age of financial assets that are not impaired 

Total 

54 877 
12 040 
 23 

66 940 
55 272 
11 336 
 0 

Neither 
past due 
nor 
impaired 

54 877 
8 587 
 23 

63 486 
55 271 
10 031 
 0 

EUR millions 

Past due but not impaired 

< 1 year 
 0 
2 887 
– 

1-5 years 
– 
 359 
– 

> 5 years 
– 
 208 
– 

2 887 
 1 
 124 
– 

 359 
– 
 909 
– 

 208 
– 
 273 
– 

66 608 

65 302 

 125 

 909 

 273 

Loans 
Receivables and recoverables 
Financial assets at fair value 
through surplus or deficit 
Total at 31.12.2017 
Loans 
Receivables and recoverables 
Financial assets at fair value 
through surplus or deficit 
Total at 31.12.2016 

51 

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

Annual accounts of the European Commission 2017 

Available 
for sale* 

Financial 
assets at 
FVSD** 

31.12.2017 
Loans and 
receivables*** 

EUR millions 

Cash 

Total 

Counterparties with external 
credit rating 
Prime and high grade 
Upper medium grade 
Lower medium grade 
Non-investment grade 

Counterparties without 
external credit rating 
Group 1 (debtors without 
defaults in the past) 
Group 2 (debtors with 
defaults in the past) 

Total 

6 989 
1 569 
1 831 
– 
10 390 

– 

– 

– 
10 390 

 16 
– 
– 
– 
 16 

 6 

– 

 6 
 23 

2 981 
23 868 
28 037 
4 084 
58 970 

18 436 
3 851 
 442 
 381 
23 109 

4 492 

 1 

 3 

– 

28 422 
29 287 
30 311 
4 465 
92 485 

4 502 

 1 

4 493 
63 463 

 3 
23 113 

4 503 
96 988 

Available 
for sale* 

Financial 
assets at 
FVSD** 

31.12.2016 
Loans and 
receivables*** 

EUR millions 

Cash 

Total 

Counterparties with external 
credit rating 
Prime and high grade 
Upper medium grade 
Lower medium grade 
Non-investment grade 

Counterparties without 
external credit rating 
Group 1 (debtors without 
defaults in the past) 
Group 2 (debtors with 
defaults in the past) 

Total 

5 264 
1 184 
 786 
– 
7 234 

– 

– 

– 
7 234 

– 
– 
– 
– 
– 

 0 

– 

 0 
 0 

3 162 
23 820 
4 526 
27 719 
59 226 

21 180 
5 178 
 486 
 733 
27 576 

5 996 

 79 

 3 

– 

29 606 
30 181 
5 798 
28 452 
94 037 

6 000 

 79 

6 076 
65 302 

 3 
27 579 

6 079 
100 116 

 Available for sale financial assets (excluding equity instruments and Unitary Fund). 

* 
**   Financial assets at fair value through surplus or deficit. 
*** Loans and Receivables include recoverables.  

6.4.  LIQUIDITY RISK 

Maturity analysis of financial liabilities by remaining contractual maturity 

Borrowings 
Payables 
Other financial liabilities 
Total at 31.12.2017 
Borrowings 
Payables 
Other financial liabilities 
Total at 31.12.2016 

1-5 years 
(14 769) 
– 
 (556) 
(15 325) 
(17 988) 
 0 
 (532) 
(18 520) 

> 5 years 
(33 279) 
– 
 (807) 
(34 087) 
(34 950) 
– 
 (906) 
(35 855) 

EUR millions 
Total 
(54 744) 
(39 376) 
(1 482) 
(95 601) 
(54 943) 
(40 240) 
(1 596) 
(96 780) 

< 1 year 

(6 695) 
(39 376) 
 (118) 
(46 189) 
(2 006) 
(40 240) 
 (158) 
(42 405) 

52 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
  
 
 
Financial instruments at fair value through surplus or deficit  

Annual accounts of the European Commission 2017 

Derivative pay leg 
Derivative receive leg 
Net cash flows at 31.12.2017 
Derivative pay leg 
Derivative receive leg 
Net cash flows at 31.12.2016 

< 1 year 

 (634) 
 638 
 5 
 (150) 
149 
 (1) 

1-5 years 
 (2) 
– 
 (2) 
– 
– 
– 

> 5 years 
– 
– 
– 
– 
– 
– 

EUR millions 
Total 

 (635) 
 638 
 3 
 (150) 
149 
 (1) 

6.5.  CARRYING AMOUNT AND FAIR VALUE OF FINANCIAL 

INSTRUMENTS  

The  following  classes  of  financial  assets  and  liabilities  are  not  measured  at  fair  value:  cash  and  cash 
equivalents, loans, exchange receivables and non-exchange recoverables, borrowings and other financial 
liabilities at amortised cost. The carrying amount of those financial assets and liabilities is considered as a 
reasonable approximation of their fair value. 

53 

 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

7.  RELATED PARTIES 

The related parties of the entity are the EU consolidated entities 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. 

Details on key management entitlements are provided in note 7 of the EU consolidated annual accounts. 

54 

 
Annual accounts of the European Commission 2017 

8. 

EVENTS AFTER THE BALANCE SHEET DATE 

At the date of signing of these accounts no material issues had come to the attention of or were reported 
to the Accounting Officer of the Commission that would require separate disclosure under this section. As 
explained in note 4.1.1 of the consolidated financial statements of the EU, the EFSI Agreement has been 
amended in March 2018 following the amended Regulation EU 2017/2396. 

The accounts and related notes were prepared using the most recently available information and this is 
reflected in the information presented. 

55 

 
 
Annual accounts of the European Commission 2017 

56 

 
 
 
Annual accounts of the European Commission 2017 

EUROPEAN COMMISSION 
FINANCIAL YEAR 2017 

BUDGETARY IMPLEMENTATION REPORTS  

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.

57 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

58 

 
 
 
Annual accounts of the European Commission 2017 

CONTENTS 

EU BUDGET RESULT........................................................................................ 60 

STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS ....................... 61 

1.

2.

IMPLEMENTATION OF EC BUDGET REVENUE .............................................. 64 

IMPLEMENTATION OF EC BUDGET EXPENDITURE ........................................ 65 

2.1. 

2.2. 

2.3. 

2.4. 

2.5. 

2.6. 

2.7. 

2.8. 

2.9. 

MFF: BREAKDOWN & CHANGES IN COMMITMENT & PAYMENT 
APPROPRIATIONS ............................................................................. 65 

MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS .................. 66 

MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ......................... 67 

MFF: MOVEMENTS IN COMMITMENTS OUTSTANDING (RAL) .................... 68 

MFF: COMMITMENTS OUTSTANDING BY YEAR OF ORIGIN ...................... 69 

POLICY AREA: BREAKDOWN AND CHANGES IN COMMITMENT AND PAYMENT 
APPROPRIATIONS ............................................................................. 70 

POLICY AREA: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS ..... 72 

POLICY AREA: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ............ 74 

POLICY AREA: MOVEMENTS IN COMMITMENTS OUTSTANDING (RAL) ....... 76 

2.10.  POLICY AREA: COMMITMENTS OUTSTANDING BY YEAR OF ORIGIN ......... 78 

RECONCILIATION OF ECONOMIC RESULT WITH BUDGET RESULT .......................... 79 

59 

 
 
 
 
 
Annual accounts of the European Commission 2017 

EU BUDGET RESULT 

Revenue 
Expenditure 
Payment appropriat. carried over to the following year 
Cancellation of unused appropr. carried over from previous year 
Evolution of assigned revenue 
Exchange differences for the year 
Budget result* 

2017 
139 691 
(135 764) 
(1 796) 
 40 
(1 450) 
 (166) 
 555 

EUR million 
2016 
144 717 
(135 180) 
(1 655) 
 63 
(1 367) 
 (173) 
6 405 

60 

 
 
 
 
 
 
Annual accounts of the European Commission 2017 

STATEMENT OF COMPARISON OF BUDGET AND ACTUAL 
AMOUNTS 

Title 

1  Own resources 

11 - Sugar levies 
12 - Customs duties 
13 - VAT 
14 - GNI 
15 - Correction of budgetary 
imbalances 
16 - Reduction of GNI based 
contribution of the 
Netherlands and Sweden 
3  Surpluses, balances and 

adjustments 

Initial 
adopted 
budget 
 131 718 
  133 
 21 334 
 16 599 
 93 652 
– 

– 

– 

Final 
adopted 
budget 
 115 484 
  133 
 20 374 
 16 620 
 78 356 
– 

Entitlements 
established 

 115 455 
  134 
 20 364 
 16 584 
 78 279 
  94 

EUR million 

Revenue 

 115 416 
  134 
 20 325 
 16 584 
 78 279 
  94 

– 

  (0) 

  (0) 

 6 405 

 6 416 

 1 148 

 6 416 

 1 137 

4  Revenue accruing from 

 1 139 

 1 139 

persons working with the 
institutions and other union 
bodies 

5  Revenue accruing from the 
administrative operation of 
the institution 

6  Contributions and refunds in 

connection with union 
agreements and programmes 

7  Default interest and fines 
8  Borrowing and lending 

operations 

9  Miscellaneous revenue 

Total 

  70 

  70 

  300 

  282 

  60 

  60 

 12 473 

 12 165 

 1 120 
  7 

 3 230 
  7 

 11 387 
  43 

 3 573 
  28 

  25 
 134 139 

  25 
 126 419 

  12 
 147 234 

  6 
 139 023 

61 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

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 
6.  Compensations 
8.  Negative reserve and deficit 

carried over from the 
previous financial year  

9.  Special Instruments 

Total 

Initial 
adopted 
budget 

 74 899 
 21 312 

Final 
adopted 
budget 

 75 399 
 21 312 

Total 
appropriations 
available 

 85 181 
 24 508 

EUR million 

Commitments 
made 

 83 268 
 22 654 

 53 587 

 54 087 

 60 673 

 60 614 

 58 584 

 58 569 

 62 806 

 60 859 

 42 613 

 42 611 

 45 830 

 44 759 

 4 284 
 10 162 
 5 473 
– 
– 

 4 284 
 10 713 
 5 473 
– 
– 

 4 472 
 12 382 
 5 846 
– 
– 

 4 124 
 11 814 
 5 652 
– 
– 

  534 
 153 937 

 1 472 
 155 910 

 1 544 
 172 231 

 1 291 
 167 009 

62 

 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

BUDGET EXPENDITURE: PAYMENTS 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 
6.  Compensations 
8.  Negative reserve and deficit 

carried over from the 
previous financial year  

9.  Special Instruments 

Total 

Initial 
adopted 
budget 

 56 522 
 19 321 

Final 
adopted 
budget 

 49 840 
 20 065 

Total 
appropriations 
available 

 61 168 
 24 370 

EUR million 

Payments 
made 

 57 030 
 21 376 

 37 201 

 29 775 

 36 797 

 35 654 

 54 914 

 54 467 

 58 575 

 56 743 

 42 563 

 42 558 

 45 975 

 44 695 

 3 787 
 9 483 
 5 474 
– 
– 

 2 793 
 8 938 
 5 471 
– 
– 

 2 994 
 10 944 
 6 136 
– 
– 

 2 867 
 9 793 
 5 571 
– 
– 

  390 
 130 569 

 1 341 
 122 850 

 1 414 
 141 230 

 1 291 
 133 294 

63 

 
 
 
 
 
 
 
 
 
 
 
 
1.

  IMPLEMENTATION OF EC BUDGET REVENUE 

Annual accounts of the European Commission 2017 

Income appropriations 

Entitlements established 

Title 

1  Own resources 

Initial 
budget 
adopted 
 131 718 

4 

3  Surpluses, balances and adjustments 
Revenue accruing from persons 
working with the institutions and other 
union bodies 
Revenue accruing from the 
administrative operation of the 
institution 
Contributions and refunds in 
connection with union agreements and 
programmes 

5 

6 

Final budget 
adopted 

Current year 

Carried over 

Total 

 115 484 

 115 429 

– 

 6 405 

 6 416 

 1 139 

 1 139 

 1 141 

  26 

– 

  6 

On 
entitlements 
of current year 
 115 414 

 6 416 

 115 455 

 6 416 

 1 148 

 1 131 

Revenue 

On 
entitlements 
carried over 
  2 

– 

  6 

Total 

 115 416 

 6 416 

100% 

100% 

 1 137 

100% 

  70 

  70 

  284 

  16 

  300 

  269 

  12 

  282 

402% 

  39 

– 

  11 

  18 

Receipts as 
% of budget 

EUR million 
Out- 
standing 

  60 

  60 

 12 216 

  258 

 12 473 

 12 050 

  116 

 12 165 

20276% 

  308 

7  Default interest and fines 

 1 120 

 3 230 

 4 823 

 6 564 

 11 387 

8  Borrowing and lending operations 

9  Miscellaneous revenue 

  7 

  25 

  7 

  25 

  39 

  3 

  5 

  9 

  43 

  12 

  541 

  24 

  2 

 3 032 

 3 573 

  5 

  4 

  28 

  6 

Total 

 134 139 

 126 419 

 140 350 

 6 883 

 147 234 

 135 846 

 3 177 

 139 023 

111% 

410% 

24% 

110% 

 7 814 

  15 

  6 

 8 210 

64 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.

  IMPLEMENTATION OF EC BUDGET EXPENDITURE  

Annual accounts of the European Commission 2017 

2.1.  MFF: BREAKDOWN & CHANGES IN COMMITMENT & PAYMENT APPROPRIATIONS 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Additional appropriations 

Total 
appropr. 
available 

Budget appropriations 

Additional appropriat. 

EUR million 

Total appropr. 
available 

MFF Heading 

Initial 
adopted 
budget 

1 

Amending 
budgets & 
transfers 

2 

Final 
adopted 
budget 

3=1+2 

Carry-overs 

Assigned 
revenue 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

4 

5 

6=3+4+5 

7 

8 

Final 
adopted 
budget 

9=7+8 

Carry-overs 

Assigned 
revenue 

10 

11 

12=9+10+11 

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 

Security and citizenship 

Global Europe 

Administration 

Compensations 

Negative reserve and deficit carried over 
from the previous financial year  

3. 

4. 

5. 

6. 

8. 

9. 

 74 899 

 21 312 

 53 587 

 58 584 

 42 613 

 4 284 

 10 162 

 5 473 

– 

– 

  500 

 75 399 

  0 

 21 312 

  500 

  (15) 

 54 087 

 58 569 

  (2) 

 42 611 

– 

 4 284 

  551 

 10 713 

– 

– 

– 

 5 473 

– 

– 

Special Instruments 

  534 

  938 

 1 472 

  0 

  0 

– 

  433 

  433 

– 

  109 

  1 

– 

– 

  31 

 9 782 

 85 181 

 56 522 

 (6 682) 

 49 840 

 3 195 

 24 508 

 19 321 

  744 

 20 065 

 6 586 

 60 673 

 37 201 

 (7 426) 

 29 775 

 3 804 

 62 806 

 54 914 

  (447) 

 54 467 

 2 786 

 45 830 

 42 563 

  (5) 

 42 558 

  188 

 1 560 

  371 

– 

– 

 4 472 

 12 382 

 5 846 

– 

– 

 3 787 

 9 483 

 5 474 

– 

– 

  (994) 

  (545) 

  (2) 

– 

– 

 2 793 

 8 938 

 5 471 

– 

– 

  130 

  117 

  13 

  635 

  630 

  11 

  120 

  293 

– 

– 

 11 198 

 4 188 

 7 009 

 3 473 

 2 786 

  189 

 1 887 

  372 

– 

– 

 61 168 

 24 370 

 36 797 

 58 575 

 45 975 

 2 994 

 10 944 

 6 136 

– 

– 

  41 

 1 544 

  390 

  951 

 1 341 

  32 

  41 

 1 414 

Total 

 153 937 

 1 974 

 155 910 

  575 

 15 746 

 172 231 

 130 569 

 (7 720) 

 122 850 

 1 221 

 17 160 

 141 230 

65 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.2.  MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Commission 2017 

MFF Heading 

Total 
appropr. 
available 

1 

from final 
adopted 
budget 

2 

from 
carry-
overs 

3 

from 
assigned 
revenue 

Total 

% 

assigned 
revenue 

carry-
overs by 
decision 

Total 

from final 
adopted 
budget 

4 

5=2+3+4 

6=5/1 

7 

8 

9=7+8 

10 

from 
carry- 
overs 

11 

from 
assigned 
revenue 

12 

from 
assigned 
revenue 

12 

Commitments made 

Appropriat. carried over to 2018 

Appropriations lapsing 

EUR million 

  16 

  8 

  8 

  19 

  10 

  2 

  1 

  42 

– 

– 

  151 

  231 

– 

– 

– 

  8 

  8 

– 

  1 

– 

– 

– 

– 

  0 

  0 

– 

– 

– 

  0 

  0 

– 

– 

– 

– 

  9 

  0 

  0 

  8 

  8 

  27 

  18 

  2 

  3 

  42 

– 

– 

  151 

  240 

1. 

Smart and inclusive growth 

 85 181 

 75 356 

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

 24 508 

 21 301 

 60 673 

 54 056 

2. 

Sustainable growth: natural resources 

 62 806 

 58 100 

    of which: Market related expenditure 
and direct payments 

 45 830 

 42 150 

Security and citizenship 

 4 472 

 4 035 

  0 

  0 

– 

  426 

  426 

– 

Global Europe 

Administration 

Compensations 

Negative reserve and deficit carried over 
from the previous financial year  

 12 382 

 10 710 

  108 

 5 846 

 5 431 

– 

– 

– 

– 

  1 

– 

– 

Special Instruments 

 1 544 

 1 259 

  31 

3. 

4. 

5. 

6. 

8. 

9. 

 7 912 

 83 268 

98 % 

 1 870 

 1 353 

 22 654 

92 % 

 1 842 

 6 559 

 60 614 

100 % 

  28 

 2 334 

 60 859 

97 % 

 1 470 

 2 183 

 44 759 

98 % 

  89 

  997 

  219 

– 

– 

– 

 4 124 

 11 814 

 5 652 

– 

– 

92 % 

95 % 

97 % 

0 % 

0 % 

  603 

  99 

  563 

  152 

– 

– 

  27 

  4 

  23 

  451 

  451 

  247 

  2 

– 

– 

– 

 1 897 

 1 846 

  51 

 1 920 

 1 054 

  345 

  565 

  152 

– 

– 

 1 291 

84 % 

  41 

  62 

  103 

Total 

 172 231 

 154 892 

  566 

 11 551 

 167 009 

97 % 

 4 195 

  788 

 4 983 

66 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
2.3.  MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS 

Annual accounts of the European Commission 2017 

MFF Heading 

Total 
appropr. 
available 

from final 
adopted 
budget 

from carry-
overs 

from 
assigned 
revenue 

Total 

% 

auto- 
matic 
carry-overs 

carry-overs 
by decis. 

assigned 
revenue 

Total 

from final 
adopted 
budget 

from carry-  
overs 

from 
assigned 
revenue 

Payments made 

Appropriations carried over to 2018 

Appropriations lapsing 

1 

2 

3 

4 

5=2+3+4 

6=5/1 

7 

8 

9 

10=7+8+9 

11 

12 

13 

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 

 61 168 

 49 698 

  111 

 7 220 

 57 030 

 24 370 

 19 945 

  101 

 1 330 

 21 376 

 36 797 

 29 754 

  11 

 5 890 

 35 654 

 58 575 

 53 889 

  626 

 2 228 

 56 743 

93 % 

88 % 

97 % 

97 % 

  121 

  108 

  13 

– 

– 

– 

 3 977 

 4 098 

 2 858 

 2 966 

 1 119 

 1 132 

  111 

  451 

 1 245 

 1 806 

 45 975 

 41 992 

  621 

 2 081 

 44 695 

97 % 

  103 

  451 

  705 

 1 259 

1. 

2. 

3. 

4. 

5. 

6. 

8. 

9. 

Security and citizenship 

 2 994 

Global Europe 

Administration 

Compensations 

Negative reserve and 
deficit carried over from 
the previous financial 
year  

 10 944 

 6 136 

– 

– 

 2 767 

 8 610 

 5 123 

– 

– 

  10 

  116 

  272 

– 

– 

  90 

 1 067 

  177 

– 

– 

 2 867 

 9 793 

 5 571 

– 

– 

Special Instruments 

 1 414 

 1 241 

  32 

  18 

 1 291 

Total 

 141 230 

 121 328 

 1 167 

 10 800 

 133 294 

EUR million 

Total 

14=11+12
+13 

  40 

  28 

  11 

  26 

  21 

  12 

  16 

  63 

– 

– 

  99 

  255 

  21 

  12 

  9 

  17 

  12 

  11 

  12 

  42 

– 

– 

  99 

  201 

  19 

  16 

  3 

  9 

  8 

  1 

  4 

  21 

– 

– 

  0 

  54 

  0 

  0 

– 

– 

– 

  0 

– 

– 

– 

– 

– 

  0 

96 % 

89 % 

91 % 

0 % 

0 % 

91 % 

94 % 

  11 

  314 

  305 

– 

 0 

  0 

  862 

  5 

  2 

  1 

– 

– 

– 

  99 

  820 

  195 

– 

– 

  115 

 1 136 

  501 

– 

– 

  23 

  24 

  458 

 6 359 

 7 680 

67 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
2.4.  MFF: MOVEMENTS IN COMMITMENTS OUTSTANDING (RAL) 

Annual accounts of the European Commission 2017 

Commitments outstanding at the end of previous year 

Commitments of the year 

EUR million 
Total commitm. 
outstanding at 
end of the year 

MFF Heading 

Commit. carried 
forward from 
prev. year 

Decommitments/ 
Revaluat./ 
Cancellations 

Payments 

Commitm. 
outstanding at 
year-end 

Commit. made 
during the year 

Payments 

Cancellation of 
commitm. which 
cannot be 
carried-over 

Commitm. 
outstanding at 
year-end 

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 

Security and citizenship 

Global Europe 

Administration 

Compensations 

Negative reserve and deficit carried over from the 
previous financial year  

Special Instruments 

3. 

4. 

5. 

6. 

8. 

9. 

Total 

 174 938 

 35 622 

 139 316 

 33 947 

  247 

 4 167 

 24 974 

  301 

– 

– 

  0 

 (4 337) 

 (1 321) 

 (3 015) 

  (180) 

  (2) 

  (231) 

  (517) 

  (22) 

– 

– 

 (49 231) 

 (13 887) 

 (35 345) 

 (11 860) 

  (211) 

 (1 650) 

 (6 662) 

  (278) 

– 

– 

  (0) 

  (0) 

 121 370 

 20 414 

 100 956 

 21 907 

  33 

 2 286 

 17 795 

  2 

– 

– 

– 

 83 268 

 22 654 

 60 614 

 60 859 

 44 759 

 4 124 

 11 814 

 5 652 

– 

– 

 (7 799) 

 (7 489) 

  (310) 

 (44 882) 

 (44 484) 

 (1 217) 

 (3 131) 

 (5 294) 

– 

– 

 1 291 

 (1 290) 

  (3) 

  (3) 

  (0) 

  (0) 

– 

– 

  (1) 

  (0) 

– 

– 

– 

 75 467 

 15 162 

 60 304 

 15 977 

  275 

 2 908 

 8 682 

  358 

– 

– 

  0 

 196 837 

 35 576 

 161 260 

 37 883 

  309 

 5 194 

 26 478 

  359 

– 

– 

  0 

 238 328 

 (5 287) 

 (69 681) 

 163 359 

 167 009 

 (63 613) 

  (4) 

 103 392 

 266 751 

68 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.5.  MFF: COMMITMENTS OUTSTANDING BY YEAR OF ORIGIN 

Annual accounts of the European Commission 2017 

MFF Heading 

<2011 

2011 

2012 

2013 

2014 

2015 

2016 

2017 

Total 

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 

Security and citizenship 

Global Europe 

Administration 

Compensations 

Negative reserve and deficit carried over from the 
previous financial year  

Special Instruments 

3 

4 

5 

6 

8 

9 

Total 

 1 575 

  741 

  834 

  227 

– 

  40 

 1 036 

– 

– 

– 

– 

  532 

  294 

  238 

  58 

– 

  34 

  543 

– 

– 

– 

– 

 1 464 

  829 

  635 

  76 

– 

  74 

 1 054 

– 

– 

– 

– 

 13 556 

 2 754 

 10 802 

  992 

– 

  114 

 2 232 

  0 

– 

– 

– 

 6 680 

 3 620 

 3 060 

  496 

  0 

  77 

 2 675 

  0 

– 

– 

– 

 41 805 

 4 893 

 36 912 

 5 470 

  12 

  278 

 4 226 

  0 

– 

– 

– 

 55 759 

 7 283 

 48 475 

 14 588 

  22 

 1 669 

 6 030 

  2 

– 

– 

  (0) 

 75 467 

 15 162 

 60 304 

 15 977 

  275 

 2 908 

 8 682 

  358 

– 

– 

  0 

 196 837 

 35 576 

 161 260 

 37 883 

  309 

 5 194 

 26 478 

  359 

– 

– 

  0 

 2 878 

 1 166 

 2 668 

 16 893 

 9 928 

 51 779 

 78 048 

 103 392 

 266 751 

EUR million 

69 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.6.  POLICY AREA: BREAKDOWN AND CHANGES IN COMMITMENT AND PAYMENT 

APPROPRIATIONS 

Annual accounts of the European Commission 2017 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Additional appropriations 

Total 
appropr. 
available 

Budget appropriations 

Additional appropriations 

EUR million 

Total appropr. 
available 

Amending 
budgets & 
transfers 

2 

Final 
adopted 
budget 

3=1+2 

Carried-over 

Assigned 
revenue 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

4 

5 

6=3+4+5 

7 

8 

Carried-over 

Assigned 
revenue 

10 

11 

12=9+10+11 

Policy area 

01 

Economic and financial affairs 

Internal market, industry, 
entrepreneurship and SMEs 

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 

Financial stability, financial services and 
capital markets union 

Initial 
adopted 
budget 

1 

 3 086 

 2 456 

  108 

 13 813 

 57 538 

 3 784 

  473 

 6 193 

 2 008 

  402 

 1 105 

  91 

  269 

  (6) 

  (0) 

  527 

  (8) 

  (1) 

  (0) 

  (0) 

  1 

– 

  (12) 

  (0) 

 3 356 

 2 449 

  108 

 14 341 

 57 530 

 3 783 

  473 

 6 193 

 2 009 

  402 

 1 094 

  90 

– 

  0 

– 

  0 

  433 

  0 

  0 

– 

  0 

– 

  0 

  0 

  456 

  251 

  5 

 1 731 

 3 690 

  181 

  20 

 1 142 

  271 

  582 

  137 

  6 

 3 812 

 2 700 

  113 

 16 072 

 61 653 

 3 964 

  492 

 7 334 

 2 280 

  984 

 1 231 

  96 

 54 110 

  (204) 

 53 906 

  636 

Final 
adopted 
budget 

9=7+8 

 3 156 

 2 255 

  108 

 9 383 

 2 840 

 2 260 

  108 

  316 

  (6) 

  (0) 

 10 726 

 (1 342) 

 1 815 

  388 

 5 912 

 2 165 

  402 

  768 

  92 

  179 

  (18) 

  (1) 

  (60) 

  (9) 

  (191) 

  (3) 

 1 994 

  371 

 5 911 

 2 104 

  392 

  577 

  89 

Regional and urban policy 

 38 612 

 1 203 

 39 815 

  31 

 4 920 

 44 767 

 26 780 

 (4 883) 

 21 898 

  194 

 3 916 

  224 

  614 

  161 

 3 146 

  210 

  542 

  0 

  17 

  (1) 

  6 

  161 

 3 163 

  209 

  547 

 3 607 

 3 103 

 (1 035) 

 2 068 

Taxation and customs union 

Education and culture 

Communication 

Health and food safety 

Migration and home affairs 

Foreign policy instruments 

Trade 

International cooperation and development 

Neighbourhood and enlargement 
negotiations 

Humanitarian aid and civil protection 

Fight against fraud 

Commission's policy coordination and legal 
advice 

Commission's administration 

Budget 

Audit 

Statistics 

  178 

 3 366 

  212 

  564 

 3 459 

  738 

  113 

 3 703 

 4 508 

 1 053 

  82 

  232 

 1 070 

  76 

  19 

  144 

  7 

  0 

  0 

  2 

  (1) 

  (54) 

  (1) 

  (27) 

  23 

  319 

– 

  0 

  (1) 

  (5) 

  (0) 

  (0) 

  186 

 3 367 

  212 

  566 

 3 458 

  685 

  112 

 3 676 

 4 531 

 1 372 

  82 

  233 

 1 069 

  71 

  19 

  143 

– 

  0 

– 

– 

  0 

  9 

  0 

  1 

– 

  99 

– 

  0 

– 

– 

– 

– 

  8 

  549 

  12 

  48 

  148 

  59 

  3 

  189 

  122 

  774 

  0 

  12 

  753 

  115 

 3 866 

 4 653 

 2 244 

  82 

  245 

  699 

  112 

 3 339 

 3 856 

 1 255 

  80 

  232 

  191 

 1 259 

 1 068 

  8 

  1 

  18 

  79 

  20 

  161 

  76 

  19 

  128 

70 

  (109) 

  (2) 

  (178) 

  (673) 

  228 

– 

  0 

  (7) 

  (5) 

  (0) 

  10 

  590 

  110 

 3 161 

 3 183 

 1 483 

  80 

  233 

 1 061 

  71 

  19 

  137 

  6 

  14 

  8 

  13 

  5 

  4 

  28 

  15 

  47 

  2 

  3 

  42 

  5 

  13 

  11 

  9 

  8 

  3 

  3 

  22 

  11 

  92 

  12 

  16 

  146 

  8 

  1 

  5 

  458 

  452 

  5 

 2 166 

 3 364 

  177 

  18 

 1 716 

  339 

  518 

  137 

  6 

 3 620 

 2 721 

  121 

 11 562 

 57 907 

 2 176 

  392 

 7 655 

 2 459 

  957 

  716 

  98 

 4 912 

 26 852 

  8 

  721 

  12 

  49 

  165 

  59 

  3 

  214 

  456 

  733 

  0 

  12 

  193 

  8 

  1 

  23 

  174 

 3 898 

  232 

  605 

 2 240 

  652 

  116 

 3 397 

 3 650 

 2 308 

  92 

  260 

 1 400 

  87 

  21 

  165 

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 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Additional appropriations 

Total 
appropr. 
available 

Budget appropriations 

Additional appropriations 

EUR million 

Total appropr. 
available 

Initial 
adopted 
budget 

1 

 1 797 

  408 

 1 643 

  271 

  147 

  484 

Amending 
budgets & 
transfers 

2 

Final 
adopted 
budget 

3=1+2 

  12 

  (2) 

  (0) 

  (0) 

  (0) 

  (271) 

 1 809 

  406 

 1 643 

  271 

  147 

  213 

Carried-over 

Assigned 
revenue 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

4 

5 

6=3+4+5 

7 

– 

– 

  0 

– 

  0 

– 

  0 

  74 

  128 

  9 

  1 

– 

 1 809 

  479 

 1 771 

  280 

  148 

  213 

 1 797 

  408 

 1 317 

  238 

  102 

  315 

8 

  12 

  (2) 

  478 

  (1) 

  (19) 

  (216) 

Final 
adopted 
budget 

9=7+8 

 1 809 

  406 

 1 795 

  237 

  84 

  99 

Carried-over 

Assigned 
revenue 

10 

11 

12=9+10+11 

– 

  19 

  5 

  4 

  4 

– 

  0 

  74 

  151 

  9 

  1 

– 

 1 809 

  498 

 1 952 

  250 

  89 

  99 

 153 937 

 1 974 

 155 910 

  575 

 15 746 

 172 231 

 130 569 

 (7 720) 

 122 850 

 1 221 

 17 160 

 141 230 

Policy area 

Pensions and related expenditure 

Language services 

Energy 

Justice and consumers 

Climate action 

Reserves 

30 

31 

32 

33 

34 

40 

Total 

71 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
2.7.  POLICY AREA: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Commission 2017 

Commitments made 

Appropriations carried over to 2018 

Appropriations lapsing 

Policy area 

Total 
appropr. 
available 

from final 
adopted 
budget 

from 
assigned 
revenue 

Total 

% 

assigned 
revenue 

carry-
overs by 
decision 

Total 

from final 
adopted 
budget 

4 

5=2+3+4 

6=5/1 

7 

8 

9=7+8 

10 

from 
carry-
overs 

11 

from 
assigned 
revenue 

12 

01 

Economic and financial affairs 

Internal market, industry, 
entrepreneurship and SMEs 

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 

Financial stability, financial services and 
capital markets union 

1 

 3 812 

 2 700 

  113 

 16 072 

 61 653 

 3 964 

  492 

 7 334 

 2 280 

  984 

 1 231 

  96 

2 

 3 355 

 2 449 

  107 

 14 332 

 57 064 

 3 781 

  472 

 6 192 

 2 005 

  402 

 1 089 

  90 

from 
carry-
overs 

3 

– 

  0 

– 

  0 

  426 

  0 

  0 

– 

  0 

– 

  0 

  0 

  43 

  110 

  3 

 1 678 

 2 203 

  48 

  14 

  598 

  86 

  121 

  136 

  2 

 3 398 

89 % 

 2 559 

95 % 

  110 

97 % 

 16 010 

100 % 

 59 693 

 3 830 

  486 

 6 790 

97 % 

97 % 

99 % 

93 % 

 2 091 

92 % 

  523 

53 % 

 1 225 

100 % 

  92 

96 % 

Regional and urban policy 

 44 767 

 39 788 

  31 

 4 890 

 44 710 

100 % 

Taxation and customs union 

Education and culture 

Communication 

Health and food safety 

  194 

 3 916 

  224 

  614 

  185 

 3 366 

  211 

  565 

Migration and home affairs 

 3 607 

 3 209 

Foreign policy instruments 

Trade 

International cooperation and 
development 
Neighbourhood and enlargement 
negotiations 

Humanitarian aid and civil protection 

Fight against fraud 

Commission's policy coordination and 
legal advice 

  753 

  115 

  684 

  111 

 3 866 

 3 672 

 4 653 

 2 244 

  82 

  245 

 4 529 

 1 371 

  79 

  231 

Commission's administration 

 1 259 

 1 067 

Budget 

Audit 

Statistics 

Pensions and related expenditure 

Language services 

Energy 

  79 

  20 

  161 

 1 809 

  479 

 1 771 

  69 

  19 

  142 

 1 800 

  402 

 1 639 

– 

  0 

– 

– 

  0 

  8 

  0 

  1 

– 

  99 

– 

  0 

– 

– 

– 

– 

– 

– 

  0 

  2 

  300 

  6 

  31 

  63 

  47 

  2 

  159 

  70 

  724 

– 

  7 

  188 

 3 666 

  218 

  596 

 3 272 

  739 

  113 

97 % 

94 % 

97 % 

97 % 

91 % 

98 % 

98 % 

 3 832 

99 % 

 4 599 

99 % 

 2 194 

  79 

98 % 

95 % 

  237 

97 % 

94 % 

92 % 

97 % 

93 % 

99 % 

93 % 

94 % 

  121 

 1 188 

  4 

  1 

  7 

  0 

  44 

  27 

  73 

  20 

  149 

 1 800 

  446 

 1 665 

72 

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 

  413 

  141 

  3 

  53 

 1 487 

  133 

  6 

  543 

  184 

  461 

  1 

  3 

  30 

  6 

  249 

  6 

  17 

  86 

  12 

  1 

  30 

  52 

  49 

  0 

  5 

  70 

  4 

  1 

  11 

  0 

  30 

  102 

– 

– 

– 

– 

  413 

  141 

  3 

  53 

  1 

  1 

  1 

  9 

– 

– 

– 

– 

  451 

 1 938 

  15 

  8 

– 

– 

– 

  4 

– 

– 

– 

  25 

– 

– 

– 

– 

  133 

  6 

  543 

  188 

  461 

  1 

  3 

  54 

  6 

  249 

  6 

  17 

  247 

  332 

– 

– 

  1 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

  12 

  1 

  31 

  52 

  49 

  0 

  5 

  70 

  4 

  1 

  11 

  0 

  30 

  102 

  1 

  1 

  1 

  0 

  0 

  4 

  1 

  3 

  1 

  1 

  1 

  1 

  2 

  0 

  1 

  4 

  2 

  1 

  4 

  2 

  2 

  3 

  0 

  1 

  9 

  3 

  5 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

  1 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

  0 

– 

  0 

– 

– 

  0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

  0 

– 

– 

– 

– 

– 

– 

– 

– 

  0 

EUR million 

Total 

13=10+ 
11+12 

  1 

  1 

  1 

  9 

  23 

  1 

  1 

  1 

  0 

  0 

  4 

  1 

  3 

  1 

  1 

  1 

  1 

  2 

  2 

  1 

  4 

  2 

  1 

  4 

  2 

  2 

  3 

  0 

  1 

  9 

  3 

  5 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

Policy area 

Commitments made 

Appropriations carried over to 2018 

Appropriations lapsing 

Total 
appropr. 
available 

from final 
adopted 
budget 

1 

2 

from 
carry-
overs 

3 

from 
assigned 
revenue 

Total 

% 

assigned 
revenue 

carry-
overs by 
decision 

Total 

from final 
adopted 
budget 

4 

5=2+3+4 

6=5/1 

7 

8 

9=7+8 

10 

from 
carry-
overs 

11 

from 
assigned 
revenue 

12 

Justice and consumers 

Climate action 

Reserves 

33 

34 

40 

Total 

  280 

  148 

  213 

  270 

  146 

– 

– 

  0 

– 

  3 

  1 

– 

  273 

98 % 

  147 

100 % 

– 

0 % 

  6 

  0 

– 

– 

– 

  62 

  6 

  0 

  62 

 172 231 

 154 892 

  566 

 11 551 

 167 009 

97 % 

 4 195 

  788 

 4 983 

  1 

  0 

  151 

  231 

– 

– 

– 

  9 

– 

– 

– 

  0 

EUR million 

Total 

13=10+ 
11+12 

  1 

  0 

  151 

  240 

73 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
2.8.  POLICY AREA: IMPLEMENTATION OF PAYMENT APPROPRIATIONS 

Annual accounts of the European Commission 2017 

Policy area 

Total 
appropr. 
available 

from final 
adopted 
budget 

from carry-
overs 

from 
assigned 
revenue 

Total 

% 

automatic 
carry-overs 

carry-overs 
by decis. 

assigned 
revenue 

Total 

from final 
adopted 
budget 

from carry-
overs 

from 
assigned 
revenue 

Payments made 

Appropriations carried over to 2018 

Appropriations lapsing 

1 

2 

3 

4 

5=2+3+4 

6=5/1 

7 

8 

9 

10=7+8+9 

11 

12 

13 

EUR million 

Total 

14=11+12
+13 

Economic and financial 
affairs 
Internal market, 
industry, 
entrepreneurship and 
SMEs 

 3 620 

 2 873 

  5 

  45 

 2 923 

81 % 

  282 

 2 721 

 2 238 

  13 

  112 

 2 363 

87 % 

  16 

Competition 

  121 

  97 

  8 

  9 

  2 

  107 

 1 069 

 10 443 

– 

– 

– 

– 

  414 

  695 

  340 

  356 

  3 

  13 

 1 097 

 1 108 

  1 

  1 

  1 

  7 

  0 

  1 

  0 

  4 

 57 907 

 53 329 

  627 

 2 212 

 56 167 

  112 

  451 

 1 152 

 1 715 

  15 

  10 

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 
Financial stability, 
financial services and 
capital markets union 
Regional and urban 
policy 
Taxation and customs 
union 

Communication 

Health and food safety 

Migration and home 
affairs 
Foreign policy 
instruments 

Trade 

International 
cooperation and 
development 
Neighbourhood and 
enlargement 
negotiations 
Humanitarian aid and 
civil protection 

Fight against fraud 

Commission's policy 
coordination and legal 

 11 562 

 9 365 

 2 176 

  392 

 1 988 

  366 

 7 655 

 5 878 

 2 459 

 2 090 

  957 

  716 

  346 

  573 

  98 

  84 

 26 852 

 21 878 

  174 

  154 

  232 

  605 

  196 

  534 

 2 240 

 2 051 

  652 

  116 

  582 

  106 

88 % 

90 % 

97 % 

96 % 

98 % 

83 % 

  86 

  15 

 2 078 

  384 

  486 

 6 390 

  87 

 2 190 

89 % 

  104 

  7 

  2 

  491 

  582 

51 % 

81 % 

  90 

92 % 

 4 853 

 26 772 

100 % 

  2 

  162 

  351 

 3 512 

  6 

  30 

  69 

  33 

  1 

  212 

  573 

 2 127 

  618 

  110 

93 % 

90 % 

91 % 

95 % 

95 % 

95 % 

95 % 

  4 

  3 

  26 

  13 

  41 

  2 

  3 

  41 

  5 

  13 

  10 

  8 

  7 

  3 

  3 

  10 

  11 

  5 

  4 

  27 

  14 

  47 

  3 

  4 

  13 

  6 

  14 

  12 

  10 

  9 

  4 

  3 

 3 397 

 3 133 

  19 

  140 

 3 292 

97 % 

  22 

 3 650 

 3 165 

  9 

  241 

 3 415 

94 % 

 2 308 

 1 466 

  92 

  260 

  70 

  211 

  92 

  8 

  14 

  648 

 2 206 

– 

  6 

  78 

  232 

96 % 

84 % 

89 % 

74 

  13 

  7 

  6 

  19 

Education and culture 

 3 898 

 3 149 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

  0 

– 

– 

– 

– 

  7 

– 

  0 

  91 

  3 

  96 

  7 

 1 230 

 1 257 

  253 

  267 

  413 

  130 

  3 

  59 

  6 

  370 

  7 

  19 

  95 

  26 

  2 

  74 

  460 

  132 

  7 

  72 

  12 

  384 

  18 

  29 

  104 

  30 

  5 

  96 

  215 

  228 

  85 

  0 

  6 

  99 

  7 

  25 

  1 

  0 

  6 

  1 

  0 

  2 

  1 

  6 

  1 

  1 

  1 

  3 

  8 

  4 

  1 

  6 

  5 

  2 

  4 

  2 

  1 

  1 

  2 

  2 

  6 

  0 

  0 

  2 

  0 

  1 

  1 

  0 

  1 

  0 

  0 

  3 

  1 

  0 

  4 

  2 

– 

  0 

– 

  0 

– 

  0 

– 

  0 

– 

– 

– 

– 

– 

– 

  (0) 

– 

  0 

  0 

– 

– 

– 

– 

  0 

– 

– 

  1 

  2 

  1 

  11 

  25 

  2 

  1 

  8 

  3 

  6 

  2 

  1 

  8 

  1 

  1 

  2 

  3 

  9 

  4 

  1 

  9 

  6 

  3 

  8 

  4 

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 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

Policy area 

Total 
appropr. 
available 

from final 
adopted 
budget 

from carry-
overs 

from 
assigned 
revenue 

Total 

% 

automatic 
carry-overs 

carry-overs 
by decis. 

assigned 
revenue 

Total 

from final 
adopted 
budget 

from carry-
overs 

from 
assigned 
revenue 

Payments made 

Appropriations carried over to 2018 

Appropriations lapsing 

1 

2 

3 

4 

5=2+3+4 

6=5/1 

7 

8 

9 

10=7+8+9 

11 

12 

13 

EUR million 

Total 

14=11+12
+13 

advice 

Commission's 
administration 

Budget 

Audit 

Statistics 

Pensions and related 
expenditure 

Language services 

Energy 

Justice and consumers 

Climate action 

Reserves 

26 

27 

28 

29 

30 

31 

32 

33 

34 

40 

 1 400 

  87 

  21 

  165 

  926 

  53 

  18 

  131 

 1 809 

 1 800 

  498 

 1 952 

  250 

  89 

  99 

  382 

 1 786 

  231 

  78 

– 

  139 

  91 

 1 157 

  7 

  1 

  4 

– 

  18 

  5 

  3 

  4 

– 

  3 

  1 

  4 

  0 

  40 

  46 

  5 

  0 

– 

  63 

  19 

  139 

 1 800 

  440 

 1 837 

  240 

  82 

– 

83 % 

72 % 

91 % 

84 % 

99 % 

88 % 

94 % 

96 % 

93 % 

0 % 

  132 

  16 

  1 

  6 

– 

  20 

  5 

  4 

  4 

– 

  1 

  101 

  234 

– 

– 

– 

– 

– 

– 

– 

– 

– 

  5 

  1 

  19 

  0 

  34 

  105 

  3 

  1 

– 

  21 

  2 

  25 

  0 

  54 

  110 

  8 

  5 

– 

Total 

 141 230 

 121 328 

 1 167 

 10 800 

 133 294 

94 % 

  862 

  458 

 6 359 

 7 680 

  2 

  3 

  0 

  1 

  9 

  3 

  3 

  1 

  1 

  99 

  201 

  7 

  1 

  0 

  0 

– 

  1 

  1 

  1 

  0 

– 

  54 

– 

– 

– 

– 

– 

– 

  0 

– 

– 

– 

  0 

  9 

  3 

  0 

  1 

  9 

  4 

  4 

  2 

  1 

  99 

  255 

75 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
2.9.  POLICY AREA: MOVEMENTS IN COMMITMENTS OUTSTANDING (RAL) 

Annual accounts of the European Commission 2017 

Policy area 

Commitm. 
carried forward 
from prev. year 

Decommitm./Reval
uat./Cancellations 

Payments 

Commitm. 
outstanding at 
year-end 

Commitm. made 
during the year 

Payments 

Cancellation of 
commitm. which 
cannot be 
carried-over 

Commitm. 
outstanding at 
year-end 

Total commitm. 
outstanding at end 
of the year 

Commitments outstanding at the end of previous year 

Commitments of the year 

EUR million 

01 

Economic and financial affairs 

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 

Internal market, industry, entrepreneurship and 
SMEs 

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 

Financial stability, financial services and capital 
markets union 

Regional and urban policy 

Taxation and customs union 

Education and culture 

Communication 

Health and food safety 

Migration and home affairs 

Foreign policy instruments 

Trade 

International cooperation and development 

Neighbourhood and enlargement negotiations 

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 and consumers 

 2 861 

 2 648 

  8 

 37 331 

 30 520 

 7 801 

 1 182 

 13 309 

 2 832 

  196 

 2 630 

  13 

  (74) 

  (31) 

  (0) 

  (277) 

  (154) 

  (663) 

  (2) 

  (228) 

  (25) 

  (14) 

  (30) 

  (2) 

 (2 501) 

 (1 361) 

  (8) 

 (10 098) 

 (11 338) 

 (1 581) 

  (268) 

 (4 300) 

 (1 278) 

  (111) 

  (399) 

  (9) 

  287 

 1 257 

– 

 26 955 

 19 028 

 5 557 

  913 

 8 781 

 1 530 

  71 

 2 202 

  2 

 3 398 

 2 559 

  110 

 16 010 

 59 693 

 3 830 

  486 

 6 790 

 2 091 

  523 

 1 225 

  92 

 99 518 

 (2 761) 

 (25 240) 

 71 518 

 44 710 

  128 

 2 644 

  62 

  480 

 3 539 

  930 

  22 

 9 150 

 12 870 

 1 050 

  29 

  16 

  184 

  8 

  1 

  119 

– 

  19 

 5 740 

  250 

  (6) 

  (231) 

  (3) 

  (29) 

  (174) 

  (24) 

  (1) 

  (211) 

  (231) 

  (55) 

  (2) 

  (2) 

  (9) 

  (1) 

  (0) 

  (4) 

– 

  (1) 

  (12) 

  (30) 

  (77) 

 (1 103) 

  (55) 

  (254) 

 (1 324) 

  (310) 

  (14) 

 (2 643) 

 (2 830) 

  (605) 

  (19) 

  (14) 

  (166) 

  (7) 

  (1) 

  (54) 

– 

  (18) 

 (1 539) 

  (102) 

76 

  45 

 1 310 

  5 

  197 

 2 041 

  597 

  7 

 6 296 

 9 808 

  390 

  8 

– 

  9 

– 

– 

  61 

– 

– 

 4 189 

  118 

  188 

 3 666 

  218 

  596 

 3 272 

  739 

  113 

 3 832 

 4 599 

 2 194 

  79 

  237 

 1 188 

  73 

  20 

  149 

 1 800 

  446 

 1 665 

  273 

  (423) 

 (1 002) 

  (99) 

  (345) 

 (44 829) 

  (497) 

  (117) 

 (2 090) 

  (912) 

  (380) 

  (183) 

  (81) 

 (1 532) 

  (85) 

 (2 409) 

  (158) 

  (319) 

  (803) 

  (308) 

  (96) 

  (649) 

  (585) 

 (1 601) 

  (59) 

  (218) 

  (991) 

  (56) 

  (19) 

  (85) 

 (1 800) 

  (422) 

  (298) 

  (139) 

– 

  (1) 

– 

– 

  (0) 

  (0) 

– 

  (1) 

– 

  (0) 

  (0) 

– 

  (0) 

– 

  (0) 

  (0) 

– 

– 

  (0) 

– 

– 

  (0) 

  (0) 

  (0) 

  (0) 

  (0) 

– 

– 

– 

– 

– 

  (0) 

– 

 2 975 

 1 556 

  11 

 15 665 

 14 863 

 3 333 

  369 

 4 700 

 1 179 

  143 

 1 042 

  11 

 3 262 

 2 812 

  11 

 42 620 

 33 891 

 8 889 

 1 282 

 13 481 

 2 709 

  214 

 3 244 

  14 

 43 177 

 114 695 

  103 

 1 257 

  60 

  277 

 2 470 

  431 

  16 

 3 183 

 4 014 

  593 

  19 

  20 

  197 

  17 

  1 

  64 

– 

  24 

 1 367 

  135 

  148 

 2 566 

  65 

  474 

 4 511 

 1 027 

  24 

 9 479 

 13 822 

  983 

  27 

  20 

  206 

  17 

  1 

  125 

– 

  24 

 5 556 

  252 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

Policy area 

Commitm. 
carried forward 
from prev. year 

Decommitm./Reval
uat./Cancellations 

Payments 

Commitm. 
outstanding at 
year-end 

Commitm. made 
during the year 

Payments 

Cancellation of 
commitm. which 
cannot be 
carried-over 

Commitm. 
outstanding at 
year-end 

Total commitm. 
outstanding at end 
of the year 

Commitments outstanding at the end of previous year 

Commitments of the year 

Climate action 

Reserves 

34 

40 

Total 

  237 

– 

  (1) 

– 

  (56) 

– 

  180 

– 

  147 

– 

  (26) 

– 

– 

– 

  121 

– 

  301 

– 

 238 328 

 (5 287) 

 (69 681) 

 163 359 

 167 009 

 (63 613) 

  (4) 

 103 392 

 266 751 

EUR million 

77 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
2.10. 

POLICY AREA: COMMITMENTS OUTSTANDING BY YEAR OF ORIGIN 

Annual accounts of the European Commission 2017 

Policy area 

<2011 

2011 

2012 

2013 

2014 

2015 

2016 

2017 

Total 

EUR million 

01 

Economic and financial affairs 

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 

Internal market, industry, entrepreneurship and 
SMEs 

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 

Financial stability, financial services and capital 
markets union 

Regional and urban policy 

Taxation and customs union 

Education and culture 

Communication 

Health and food safety 

Migration and home affairs 

Foreign policy instruments 

Trade 

International cooperation and development 

Neighbourhood and enlargement negotiations 

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 and consumers 

Climate action 

Reserves 

  2 

  12 

– 

  387 

  34 

  30 

  108 

  68 

  40 

  11 

  84 

– 

  665 

– 

  6 

– 

  16 

  35 

  8 

– 

  253 

  532 

  26 

– 

– 

– 

– 

– 

– 

– 

– 

  560 

  0 

– 

– 

– 

  21 

– 

  238 

– 

  18 

  58 

  135 

  25 

  0 

  0 

– 

  6 

– 

  22 

  0 

  3 

  29 

  9 

  0 

  183 

  334 

  13 

– 

– 

– 

– 

– 

  0 

– 

– 

  69 

  4 

– 

– 

  29 

  25 

– 

  146 

  1 

  158 

  63 

  401 

  46 

  0 

  11 

– 

  493 

  0 

  69 

  0 

  4 

  81 

  32 

  0 

  407 

  604 

  13 

– 

– 

– 

– 

– 

  0 

– 

– 

  80 

  6 

– 

– 

  244 

  51 

– 

 2 092 

  681 

  125 

  100 

  919 

  125 

  10 

  268 

– 

 8 938 

– 

  138 

  0 

  9 

  130 

  40 

  0 

  813 

 1 093 

  14 

– 

– 

  1 

– 

– 

  1 

– 

– 

 1 093 

  7 

  0 

– 

  0 

  80 

– 

 1 231 

  318 

  978 

  142 

 1 857 

  294 

  7 

  9 

  0 

 1 395 

  2 

  209 

  0 

  25 

  58 

  125 

  0 

 1 032 

 1 480 

  20 

  1 

– 

  1 

– 

– 

  8 

– 

– 

  600 

  15 

  38 

– 

  2 

  244 

– 

 10 492 

 4 368 

 1 224 

  203 

 2 426 

  395 

  6 

  972 

  1 

  10 

  823 

  0 

 12 369 

 13 625 

 3 025 

  239 

 2 975 

  604 

  36 

  856 

  2 

 2 975 

 1 556 

  11 

 15 665 

 14 863 

 3 333 

  369 

 4 700 

 1 179 

  143 

 1 042 

  11 

 3 262 

 2 812 

  11 

 42 620 

 33 891 

 8 889 

 1 282 

 13 481 

 2 709 

  214 

 3 244 

  14 

 25 751 

 34 270 

 43 177 

 114 695 

  12 

  388 

  0 

  48 

  220 

  165 

  1 

 1 530 

 2 412 

  32 

  2 

– 

  0 

– 

– 

  15 

– 

– 

  789 

  25 

  56 

– 

  31 

  479 

  4 

  90 

 1 489 

  218 

  5 

 2 079 

 3 353 

  271 

  5 

  0 

  6 

– 

  0 

  37 

– 

  0 

  999 

  61 

  86 

– 

  103 

 1 257 

  60 

  277 

 2 470 

  431 

  16 

 3 183 

 4 014 

  593 

  19 

  20 

  197 

  17 

  1 

  64 

– 

  24 

 1 367 

  135 

  121 

– 

  148 

 2 566 

  65 

  474 

 4 511 

 1 027 

  24 

 9 479 

 13 822 

  983 

  27 

  20 

  206 

  17 

  1 

  125 

– 

  24 

 5 556 

  252 

  301 

– 

Total 

 2 878 

 1 166 

 2 668 

 16 893 

 9 928 

 51 779 

 78 048 

 103 392 

 266 751 

78 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2017 

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) 
Amount from liaison account 
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 

BUDGET RESULT OF THE YEAR 

2017 
7 901 

(4 402) 

10 733 

 (257) 

3 706 
3 378 
(3 574) 
(12 039) 
(2 746) 
1 181 

6 795 
(6 675) 

4 000 

EUR millions 
2016 
1 775 

(1 963) 

3 356 

 611 

10 626 
3 286 
(7 656) 
 (366) 
(2 500) 
 841 

3 890 
(2 084) 

9 817 

BUDGET RESULT OTHER INSTITUTIONS 

(3 445) 

(3 413) 

BUDGET RESULT OF THE YEAR (EU) 

 555 

6 405 

79