COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS ANNUAL ACCOUNTS OF THE EUROPEAN COMMISSION FOR THE FINANCIAL YEAR 2018
Date: 2019-06-26
Institutions: Directorate-General for Budget, European Commission
Subjects: balance sheet, closing of accounts, consolidated account, financial situation, general budget (EU), implementation of the budget

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 26.6.2019  COM(2019) 312 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS ANNUAL ACCOUNTS OF THE EUROPEAN COMMISSION FOR THE FINANCIAL YEAR 2018  
 
 
Annual accounts  

of the European 

Commission 

Financial year 2018 

 
 
 
 
 
 
Annual accounts of the European Commission 2018 

CONTENTS 

CERTIFICATION OF THE ACCOUNTS .................................................................... 3 

FINANCIAL STATEMENTS AND EXPLANATORY NOTES ............................................ 4 

BALANCE SHEET ............................................................................................ 6 

STATEMENT OF FINANCIAL PERFORMANCE ....................................................... 7 

CASHFLOW STATEMENT ................................................................................. 8 

STATEMENT OF CHANGES IN NET ASSETS ........................................................ 9 

NOTES TO THE FINANCIAL STATEMENTS ........................................................ 10 

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

2 

 
  
 
Annual accounts of the European Commission 2018 

CERTIFICATION OF THE ACCOUNTS 

The annual accounts of  the European  Commission for  the year 2018 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 77 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 

21 June 2019 

3 

 
 
 
 
 
Annual accounts of the European Commission 2018 

EUROPEAN COMMISSION 
FINANCIAL YEAR 2018 

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.

4 

 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

CONTENTS 

BALANCE SHEET ............................................................................................... 6 

STATEMENT OF FINANCIAL PERFORMANCE .......................................................... 7 

CASHFLOW STATEMENT .................................................................................... 8 

STATEMENT OF CHANGES IN NET ASSETS ........................................................... 9 

NOTES TO THE FINANCIAL STATEMENTS ........................................................... 10 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

SIGNIFICANT ACCOUNTING POLICIES ................................................. 11 

NOTES TO THE BALANCE SHEET ......................................................... 25 

NOTES TO THE STATEMENT OF FINANCIAL PERFORMANCE ..................... 42 

CONTINGENT LIABILITIES AND ASSETS ............................................... 46 

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

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

RELATED PARTIES ............................................................................ 55 

EVENTS AFTER THE BALANCE SHEET DATE .......................................... 56 

5 

 
 
 
Annual accounts of the European Commission 2018 

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 

31.12.2018 

31.12.2017 

 EUR million 

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 

 168 
8 098 
 591 
63 917 
25 807 
 415 

98 997 

3 875 
24 502 
23 903 
 67 
16 946 

69 293 
168 290 

(79 865) 
(3 013) 
(52 764) 

 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) 

(135 642) 

(124 526) 

 (820) 
(2 489) 
(32 539) 
(62 500) 

(98 348) 
(233 990) 

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

(110 148) 
(234 674) 

(65 700) 

(75 014) 

3 186 
(68 885) 
(65 700) 

3 062 
(78 077) 
(75 014) 

*  The European Parliament adopted a budget on 12 December 2018 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 2019. 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. 

6 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

STATEMENT OF FINANCIAL PERFORMANCE 

Note 

2018 

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 

EUR million 

2017 

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

105 780 
22 767 
17 624 
6 740 
2 213 
 (674) 

154 450 

129 145 

3 103 
 716 

3 819 

1 820 
 692 

2 511 

158 270 

131 657 

(43 527) 
(13 149) 

(44 289) 
(11 359) 

(30 230) 

(17 650) 

(11 935) 
(2 826) 
(17 576) 

(3 622) 
(4 016) 
(3 569) 
(7 789) 
– 
(1 640) 
(4 019) 

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

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

Total Expenses 
ECONOMIC RESULT OF THE YEAR 

(143 897) 
14 372 

(123 756) 
7 901 

7 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

CASHFLOW STATEMENT 

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 
Remeasurement of employee benefits liability (non-
cash movement not included in statement of financial 
performance) 
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 

2018 
14 372 

 29 
 705 
1 037 
(1 012) 
(12 278) 

 (5) 
7 369 

 571 
 (974) 
(6 837) 
 (814) 

 (556) 

(4 432) 

 (70) 

EUR million 

2017 
7 901 

 27 
 630 
 395 
(3 557) 
 (705) 

 13 
5 945 

 850 
 (313) 
 (864) 
(3 713) 

(6 405) 

– 

 4 

(1 307) 

(1 382) 

 (9) 

 (53) 

(1 964) 

(3 217) 

 7 

 (22) 

(6 167) 

(4 467) 

(6 167) 
23 113 

16 946 

(4 467) 
27 579 

23 113 

8 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENT OF CHANGES IN NET ASSETS 

Annual accounts of the European Commission 2018 

BALANCE AS AT 31.12.2016 
Movement in Guarantee Fund reserve 
Fair value movements 
Other 
2016 budget result credited to Member States 
Economic result of the year 
BALANCE AS AT 31.12.2017 
Movement in Guarantee Fund reserve 
Fair value movements 
Remeasurements in employee benefits liability 
Other 
2017 budget result credited to Member States 
Economic result of the year 
BALANCE AS AT 31.12.2018 

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

Other reserves 

Fair value 
reserve 

(79 546) 
 (20) 
– 
 (7) 
(6 405) 
7 901 
(78 077) 
 (186) 
– 
(4 432) 
 (7) 
 (556) 
14 372 
(68 885) 

2 720 
 20 
– 
 47 
– 
– 
2 788 
 186 
– 
– 
 (17) 
– 
– 
2 957 

 311 
– 
 10 
 (46) 
– 
– 
 275 
– 
 (46) 
– 
– 
– 
– 
 229 

EUR million 

Net Assets 

(76 515) 
– 
 10 
 (6) 
(6 405) 
7 901 
(75 014) 
– 
 (46) 
(4 432) 
 (24) 
 (556) 
14 372 
(65 700) 

9 

 
 
 
 
 
 
 
  
 
Annual accounts of the European Commission 2018 

NOTES TO THE FINANCIAL STATEMENTS 

For further information in addition to the notes below, please also see the 2018 EU consolidated annual 
accounts.

10 

 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

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  1046/2018  of  the 
European  Parliament  and  of  the  Council  of  18  July  2018  on  the  financial  rules  applicable  to  the  general 
budget  of  the  Union,  amending  Regulations  (EU)  No  1296/2013,  (EU)  No  1301/2013,  (EU)  No 
1303/2013,  (EU)  No  1304/2013,  (EU)  No  1309/2013,  (EU)  No  1316/2013,  (EU)  No  223/2014,  (EU)  No 
283/2014,  and  Decision  No  541/2014/EU  and  repealing  Regulation  (EU,  Euratom)  No  966/2012  (OJ L 
193, 30 July 2018, p. 1) hereinafter referred to as the 'Financial Regulation' (FR). 

In accordance with article 80 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) 

Revised EAR which is effective for annual periods beginning on or after 1 January 2018 

The  following  accounting  rules,  adopted  by  the  Accounting  Officer  of  the  Commission,  became 
mandatorily effective in the current year: 

  Revision  of  EAR  12  "Employee  Benefits":  The  revised  EAR  12  was  adopted  by  the  Accounting 
Officer in 2017 which is based on the new IPSAS 39 “Employee Benefits” published in July 2016. 
For  the  first  application  of  the  revised  EAR  12  there  were  no  significant  impacts  on  the  EU 
consolidated  financial  statements,  aside  from  the  recognition  of  any  gain  or  loss  resulting  from 
changes  in  the  actuarial  assumptions,  which  under  the  revised  EAR  is  recognised  directly  in  net 
assets, in contrast with the previous requirement to recognise in surplus or deficit. 

New EAR adopted but not yet effective at 31 December 2018 

The EU has not applied the following new EAR, which have been adopted by the Accounting Officer of the 
Commission, but which is not yet effective: 

  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 
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.  

11 

 
 
Annual accounts of the European Commission 2018 

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  2018,  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. 

Joint Arrangements 

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). 

12 

 
Annual accounts of the European Commission 2018 

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 

31.12.2018 
1.9558 
25.7240 
7.4673 
0.8945 
7.4125 
320.9800 

31.12.2017 
1.9558 
25.5350 
7.4449 
0.8872 
7.4400 
310.3300 

Currency 
PLN 
RON 
SEK 
CHF 
JPY 
USD 

31.12.2018 
4.3014 
4.6635 
10.2548 
1.1269 
125.8500 
1.145 

31.12.2017 
4.177 
4.6585 
9.8438 
1.1702 
135.01 
1.1993 

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. 

13 

 
  
 
 
 
Annual accounts of the European Commission 2018 

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 % 
0 % to 25 % 
25 % to 33 % 
10 % to 33 % 

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

Leases 

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

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

14 

 
 
 
Annual accounts of the European Commission 2018 

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,  being  the  carrying 
amount subsequently increased or decreased to recognise the EU’s share of the surplus or deficit of the 
investee after the date of acquisition. The EU's share of the investee’s surplus or deficit is recognised in 
the statement of financial performance, and its share of investee’s movements in equity is recognised in 
the reserves within 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. 

(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  or  if  so  designated  by  the  entity.  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. 

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Annual accounts of the European Commission 2018 

(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 deposited in a financial institution or 
advanced to 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. 

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. 

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Annual accounts of the European Commission 2018 

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 

A  financial  asset  is  impaired  and  a  loss  is  recognised  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.  The  EU  assesses  at  each  reporting  date  whether  there  is  objective  evidence 
that a financial asset is impaired. 

(a)  Assets carried at amortised cost 

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

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Annual accounts of the European Commission 2018 

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 
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. 

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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.  A  general  write-down  based  on 
past experience is made for outstanding recovery orders not already subject to a specific write-down. 

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.  Employee benefits 

The  accounting  policy  for  employee  benefits  has  been  updated  in  line  with  the  requirements  of  the 
revised accounting rule EAR 12 Employee Benefits, effective for periods beginning on or after 1 January 
2018 which is based on the new IPSAS 39 (Employee Benefits) published in July 2016. The main change, 
arising  from  the  revision  of  accounting  rule  12,  is  the  presentation  of  actuarial  gains  and  losses  as  a 
movement in net assets instead of in the statement of financial performance. 

Accounting  for  defined  benefit  plans  is  complex  because  actuarial  assumptions  and  judgement  are 
required  to  measure  the  obligation.  In  applying  the  revised  accounting  rule,  the  EU  has  reassessed  the 
judgements used, in particular, as regards to the estimate of the ultimate cost of the benefit attributed to 
the employees. As a result of this exercise, the appropriateness of the use of the estimated active service 
period  of  the  employee  as  the  basis  for  attributing  benefits  to  periods  of  service  was  confirmed.  The 
benefits  which  the  EU’s  employees  are  entitled  to  are  given  under  a  single  plan  –  although  split  in  two 
schemes – and they must be treated similarly so as to give a fair presentation of the situation and reflect 
the economic reality. 

The  EU  provides  a  set  of  benefits  (emoluments  and  social  security)  to  employees.  For  accounting 
purposes these have to be classified into short term and post-employment benefits. 

Short-term employee benefits 

Short-term employee benefits are those benefits due to be settled before twelve months after the end of 
the  reporting  period  in  which  employees  rendered  the  service,  such  as  salaries,  annual  and  paid  sick 
leaves,  and  other  short-term  allowances.  Short-term  employee  benefits  are  recognised  as  an  expense 
when the related service is provided. A liability is recognised for the amount expected to be paid if the EU 
has a present legal or constructive obligation to pay as a result of past service provided by the employee 
and the obligation can be estimated reliably. 

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Annual accounts of the European Commission 2018 

Post-employment benefits 

The EU grants a set of post-employment benefits to employees, which include retirement, invalidity and 
survival pensions, as well as medical coverage (see note 2.9).  

The EU provides its staff with a post-employment benefit plan that includes:  

i. 

ii. 

Pension Scheme of European Officials (PSEO): The benefits granted under this notionally funded1 
scheme  relate  to  seniority,  invalidity  and  survival,  as  well  as,  family  allowances,  death  before 
retirement to those employees that work or worked in the EU Institutions, Agencies and other EU 
bodies  or  are  survivors  of  deceased  officials  or  pensioners.  Staff  contribute  one  third  of  the 
expected cost of these benefits from their salaries.  

Joint Sickness Insurance Scheme (JSIS): Under this scheme, the EU provides health coverage for 
staff  of  the  European  Commission,  Institutions,  Agencies  and  other  EU  bodies  through  the 
reimbursement of medical expenses. The benefits granted to the "inactives" of this scheme (i.e. 
pensioners, orphans, etc.) are classified as post-employment benefits. 

The  EU  also provides  post-employment  benefits  to members  of  the  EU institutions  via  separate  pension 
schemes.  These  are  shown  under  the  heading  other  retirement  benefit  schemes.  Under  these  schemes 
the  EU  provides  pension  benefits  to  members  of  the  Commission,  Court  of  Justice  and  General  Court, 
Court  of  Auditors,  Council,  European  Parliament,  Ombudsman,  Data  Protection  Supervisor,  Civil  Service 
Tribunal. The EU provides health coverage to the members of the EU Institutions via the JSIS.  

The above post-employment benefits qualify as defined benefit obligations of the EU and are calculated at 
each  reporting  date  by  estimating  the  amount  of  future  benefit  that  employees  have  earned  in  the 
current and prior periods, discounting that amount and deducting the fair value of any plan assets. The 
calculation of defined benefit obligation is performed annually 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. 

The post-employment benefits provided to EU staff are incorporated in a single plan comprising  both a 
pension  scheme  (PSEO)  and  a  sickness  insurance  scheme  (JSIS),  with  the  right  to  coverage  under  the 
JSIS scheme being dependent on having acquired the right to coverage under the PSEO scheme. Under 
the terms of this single plan, as set out in the Staff Regulation, certain entitlements, such as the right to 
a  deferred  and  reduced  pension  under  the  PSEO  scheme,  are  acquired  after  10  years  of  service. 
However,  the  entitlements  acquired  under  the  single  plan  by  the  employee’s  subsequent  service  are 
materially  higher  than  those  initial  entitlements  as  reflected  by  subsequent  annually  accrued  pension 
rights.  

Therefore, in order to depict the economic substance of the underlying transaction required by the faithful 
representation  qualitiative  characteristic  of  financial  reporting  as  outlined  in  both  EAR  1  and  the  IPSAS 
Conceptual Framework, the service cost incurred is accrued on a straight-line basis over staff’s estimated 
active service period, i.e. the period from the date when service by the employee first leads to benefits 
under the plan (whether or not the benefits are conditional on further service) until the date when further 
service  by  the  employee  will  lead  to  no  material  amount  of  further  benefits  under  the  plan,  other  than 
from further salary increases. This approach is applied consistently to the benefits provided for under the 
single plan. 

Remeasurements of the net defined benefit liability comprise actuarial gains and losses and the return on 
plan assets, and are recognised immediately in net assets.  

The  EU  recognises  the  net  interest  expense  (income)  and  other  expenses  related  to  the  defined  benefit 
plans in the statement of financial performance within the caption ‘staff and pension costs’. 

When  benefits  provided  are  changed  or  curtailed,  the  resulting  change  in  benefits  that  relates  to  past 
service  or  the  gain  or  loss  on  curtailment  is  recognised  immediately  in  the  statement  of  financial 

1 The PSEO is a notional (virtual) fund with defined benefits, in which staff’s contributions serve to finance their future pensions. Although there is no actual 
investment fund, the amount that would have been collected by such a fund is considered to have been invested in the Member States’ long-term bonds and 
is  reflected  in  the  pension  liability  that  is  registered  in  the  annual  accounts  of  the  European  Union.  Member  States  jointly  guarantee  the  payment  of  the 
benefits pursuant to Article 83 of the Staff Regulations and Article 4(3) of the Treaty on European Union (see COM(2018) 829 for a detailed description of the 
scheme). 

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performance.  Gains  and  losses  on  settlement  are  recognised  when  the  settlement  occurs.  Past  service 
cost  is  recognised  immediately  in  the  statement  of  financial  performance,  unless  the  changes  are 
conditional on the employees remaining in service for a specified period of time. 

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). 

Provisions for onerous contracts are measured at the present value of the lower of the expected cost of 
terminating the contract and the expected net cost of continuing with the contract. 

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 where 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. 

21 

 
 
 
Annual accounts of the European Commission 2018 

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 
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 

22 

 
Annual accounts of the European Commission 2018 

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; 

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. 

23 

 
Annual accounts of the European Commission 2018 

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

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

1.7.  CONTINGENT ASSETS AND LIABILITIES 

1.7.1.  Contingent assets 

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

1.7.2.  Contingent liabilities 

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

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. 

24 

 
 
Annual accounts of the European Commission 2018 

2.  NOTES TO THE BALANCE SHEET  

ASSETS 

2.1.  INTANGIBLE ASSETS 

Gross carrying amount at 31.12.2017 
Additions 
Disposals 
Transfer between asset categories 
Other changes 
Gross carrying amount at 31.12.2018 
Accumulated amortisation at 31.12.2017 
Amortisation charge for the year 
Amortisation written back 
Disposals 
Transfer between asset categories 
Other changes 
Accumulated amortisation at 31.12.2018 
NET CARRYING AMOUNT AT 31.12.2018 
NET CARRYING AMOUNT AT 31.12.2017 

EUR million 

 292 
 49 
 (9) 

 333 
 (143) 
 (29) 
– 
 8 
– 
 (1) 
 (165) 
 168 
 149 

25 

 
 
 
 
 
 
 
 
2.2.  PROPERTY, PLANT AND EQUIPMENT 

Annual accounts of the European Commission 2018 

Plant and 
equipment 

Furniture and 
vehicles  

Computer 
hardware 

Gross carrying amount at 31.12.2017 
Additions 
Disposals 
Transfer between asset categories 
Other changes 
Gross carrying amount at 31.12.2018 
Accumulated depreciation at 31.12.2017 
Depreciation charge for the year 
Depreciation written back 
Disposals 
Transfer between asset categories 
Other changes 
Accumulated depreciation at 31.12.2018 

Land and 
buildings 

1 448 
 12 
 (8) 
 (2) 
 1 
1 450 
 (840) 
 (43) 
– 
 8 
– 
 (0) 
 (875) 

Space 
assets 

4 264 
 14 
 (0) 
 982 
 0 
5 259 
 (780) 
 (561) 
– 
 0 
– 
 (0) 
(1 341) 

NET CARRYING AMOUNT AT 31.12.2018 
NET CARRYING AMOUNT AT 31.12.2017 

 575 
 608 

3 918 
3 484 

Other 

 156 
 7 
 (3) 
 0 
 0 
 161 
 (121) 
 (11) 
– 
 3 
 (0) 
 (0) 
 (130) 

 248 
 15 
 (35) 
 5 
 2 
 235 
 (207) 
 (21) 
– 
 33 
 (5) 
 (1) 
 (200) 

 35 
 41 

 30 
 35 

Finance 
leases  

Assets under 
construction 

EUR million 
TOTAL 

1 552 
 8 
 (9) 
 (5) 
 1 
1 548 
 (756) 
 (54) 
– 
 7 
 5 
 (1) 
 (798) 

 750 
 797 

2 544 
1 198 
– 
 (983) 
 0 
2 759 
– 
– 
– 
– 
– 
– 
– 

2 759 
2 544 

10 544 
1 263 
 (73) 
 (3) 
 16 
11 747 
(3 000) 
 (705) 
– 
 63 
– 
 (7) 
(3 649) 

8 098 
7 544 

 260 
 9 
 (16) 
 0 
 12 
 266 
 (240) 
 (10) 
– 
 9 
– 
 (5) 
 (246) 

 20 
 21 

 71 
 1 
 (2) 
– 
 0 
 69 
 (57) 
 (3) 
– 
 2 
– 
 (0) 
 (58) 

 11 
 14 

26 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

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 2018,  the  EU  holds 
29.7 % of the ownership interest in EIF (2017: 29.7 %). 

Participation at 31.12.2017 
Contributions 
Dividends received 
Share of net result 
Share in the net assets 
Participation at 31.12.2018 

EIF summarised financial information: 

Assets 
Liabilities 
Revenue 
Expenses 
Surplus/(deficit) 

EUR million 
European Investment Fund 
 581 
– 
 (3) 
 37 
 (24) 
 591 

31.12.2018 
Total EIF 
2 662 
 (674) 
291 
 (167) 
124 

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

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 

31.12.2018 
1 988 
29.7% 
 591 

EUR million 
31.12.2017 
1 956 
29.7% 
 581 

The Commission has paid-in 20 % of its subscribed shares in the EIF capital at 31 December 2018, the 
amount uncalled being as follows: 

Total share capital 
Paid-in 
Uncalled 

Total EIF capital 
4 500 
 (900) 
3 600 

EUR million 
EU subscription 
1 337 
 (267) 
1 070 

27 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

2.4.  FINANCIAL ASSETS 

Note 

31.12.2018 

31.12.2017 

EUR million 

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 

12 345 
 14 
51 559 
63 917 

1 592 
 2 
2 281 
3 875 
67 793 

10 410 
 16 
48 107 
58 533 

1 563 
 6 
6 770 
8 339 
66 872 

2.4.1. 

 Available for sale financial assets 

BUFI investments 
European Bank for Reconstruction and Development 

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

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

Total 
Non-current 
Current 

31.12.2018 
1 888 
 188 
2 076 

EUR million 
31.12.2017 
2 158 
 188 
2 346 

5 000 
2 465 
 9 
7 474 

2 031 
 679 
 540 
 464 
 113 
 115 
 444 
4 386 
13 937 
12 345 
1 592 

3 414 
2 199 
– 
5 613 

1 730 
 665 
 482 
 508 
 113 
 119 
 398 
4 014 
11 973 
10 410 
1 563 

2.4.2. 

Financial assets at fair value through surplus or deficit 

Type of derivative 

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

31.12.2018 

31.12.2017 

EUR million 

Notional 
amount  
476 
674 
1 150 
674 
476 

Fair value 

2 
14 
16 
14 
2 

Notional 
amount  
634 
258 
892 
258 
634 

Fair value 

6 
16 
23 
16 
6 

28 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

Fair value hierarchy of financial assets measured at fair value 

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 

31.12.2018 
12 487 
 275 
1 191 

EUR million 
31.12.2017 
10 325 
 510 
1 161 

13 953 

11 996 

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

Opening balance at 1.1.2018 
Purchases, sales, issues and settlements 
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 31.12.2018 

EUR million 

1 161 
 104 
 (36) 
 (37) 
– 
– 
– 
1 191 

2.4.3. 

 Loans  

Loans for financial assistance 
Other loans 

Total 

Non-current 
Current 

2.4.3.1.  Loans for financial assistance 

Note 
2.4.3.1 
2.4.3.2 

31.12.2018 
53 775 
 64 

53 840 

51 559 
2 281 

EUR million 

31.12.2017 
54 744 
 133 

54 877 

48 107 
6 770 

Total at 31.12.2017 
New loans 
Repayments 
Exchange differences 
Changes in carrying amount 
Impairment 
Total at 31.12.2018 
Non-current 
Current 

EFSM 
47 456 
4 500 
(4 500) 
– 
 (56) 
– 
47 400 
46 800 
 600 

BOP 
3 114 
– 
(1 350) 
– 
 (30) 
– 
1 734 
 200 
1 534 

MFA 
3 924 
 515 
 (56) 
– 
 5 
– 
4 388 
4 309 
 79 

Euratom 
 250 
 50 
 (46) 
 (0) 
 0 
– 
 254 
 213 
 41 

EUR million 
Total 
54 744 
5 065 
(5 952) 
 (0) 
 (82) 
– 
53 775 
51 521 
2 254 

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

Nominal  value  of  loans  for  financial  assistance  at  31  December  2018  total  EUR 53 114 million  (2017: 
EUR 54 000 million). 

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

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

31.12.2018 
0 % - 3.82 % 
0.08 % - 5.76 % 
2.88 % - 3.38 % 
0.50 % - 3.75 % 

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

29 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

2.4.3.2.  Other loans 

Loans with special conditions 
Term deposits 
Total 
Non-current 
Current 

31.12.2018 
 64 
 0 
 64 
 37 
 27 

EUR million 
31.12.2017 
 78 
 55 
 133 
 59 
 75 

Nominal value of other loans at 31 December 2018 total EUR 615 million (2017: EUR 557 million). 

Impairment on other loans 

31.12.2017 

Additions 

Reversals 

Write-off  

Other 

Loans with special 
conditions 
Subrogated loans 

Total 

 8 

 432 

 440 

 1 

 147 

 148 

– 

– 

– 

 (0) 

– 

 (0) 

– 

– 

– 

EUR million 
31.12.2018 

 8 

 579 

 587 

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 

31.12.2018 

31.12.2017 

EUR million 

2.5.1 
2.5.2 

2.5.1 
2.5.2 

21 615 
4 122 
 71 
25 807 

22 106 
2 396 
24 502 
50 309 

21 663 
3 018 
 64 
24 745 

22 908 
1 645 
24 552 
49 297 

30 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

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 
accruals 

Net amount at 
31.12.2018 

Gross 
amount 

Cleared via 
accruals 

EUR million 
Net amount at 
31.12.2017 

3 743 

3 743 

3 735 

3 735 

18 088 

6 548 

4 684 

(3 461) 

(1 147) 

(2 498) 

14 627 

5 401 

2 186 

20 561 

6 792 

5 037 

(5 678) 

(1 182) 

(2 267) 

14 883 

5 610 

2 770 

12 827 

15 012 

(8 523) 

(9 540) 

 585 

 (432) 

4 304 

5 472 

 152 

12 454 

13 845 

(8 587) 

(8 751) 

 440 

 (212) 

3 867 

5 094 

 228 

3 830 

(2 975) 

 856 

3 767 

(2 951) 

 816 

1 546 

 (879) 

 667 

1 586 

 (956) 

7 684 

(5 053) 

2 631 

9 001 

(5 879) 

9 107 

(5 426) 

83 655 

(39 933) 

21 615 

62 040 

– 

(39 933) 

3 681 

43 721 

21 615 

22 106 

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 

2.5.2.  Other advances to Member States 

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

31.12.2018 
3 675 

EUR million 
31.12.2017 
2 768 

2 843 
6 518 
4 122 
2 396 

1 895 
4 663 
3 018 
1 645 

31 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

2.6.  EXCHANGE RECEIVABLES AND NON-EXCHANGE 

RECOVERABLES 

Note 

31.12.2018 

31.12.2017 

EUR million 

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 

 409 
 6 
 415 

22 075 
1 828 
23 903 
24 318 

 616 
 3 
 619 

10 924 
 497 
11 421 
12 040 

Non-current 
Member States 
Other recoverables 

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

Total 

Note 

31.12.2018 

31.12.2017 

EUR million 

2.6.1.1 

2.6.1.1 
2.6.1.2 
2.6.1.3 

 397 
 12 

 409 

10 836 
9 727 
1 291 
 222 

22 075 

22 485 

 594 
 22 

 616 

6 123 
4 225 
 384 
 192 

10 924 

11 540 

32 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

2.6.1.1.  Recoverables from Member States 

Recoverables related to own resources: 
TOR A accounts 
TOR separate accounts 
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 

2.6.1.3.  Accrued income and deferred charges 

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

31.12.2018 

EUR million 
31.12.2017 

5 609 
1 612 
2 758 
 (991) 
 86 
9 075 

1 708 
 859 
 13 
 82 

 (788) 
1 875 
 145 
 12 
 127 
11 232 
 397 
10 836 

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 

31.12.2018 
13 022 
(3 131) 
 (164) 
9 727 
– 
9 727 

31.12.2018 
1 238 
 53 
1 291 
– 
1 291 

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

EUR million 
31.12.2017 
 323 
 61 
 384 
– 
 384 

33 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

2.6.2.  Receivables from exchange transactions 

Non-current 
Other receivables 

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

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 

31.12.2018 

EUR million 
31.12.2017 

 6 
 6 

 181 
 (141) 
 157 
1 631 
1 828 
1 834 

 3 
 3 

 184 
 (136) 
 172 
 277 
 497 
 501 

31.12.2018 
 52 
 16 
 67 

EUR million 
31.12.2017 
 45 
 18 
 62 

31.12.2018 
12 932 
 79 
 5 
 0 
13 017 
2 377 
1 438 
 114 
16 946 

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

34 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

LIABILITIES 

2.9.  PENSION AND OTHER EMPLOYEE BENEFITS 

Net employee benefit scheme liability 

Pension 
Scheme 
of 
European 
Officials 
70 017 
N/A 
70 017 

Other 
retirement 
benefit 
schemes 

Joint 
Sickness 
Insurance 
Scheme 

31.12.2018 
Total 

EUR million 
31.12.2017 
Total 

1 154 
N/A 
1 154 

8 990 
 (296) 
8 694 

80 160 
 (296) 
79 865 

72 796 
 (301) 
72 495 

Defined Benefit Obligation 
Plan assets 
Net liability 

Actuarial assumptions - employee benefits 

Pension Scheme 
of European 
Officials 

Joint Sickness 
Insurance 
Scheme 

2018 
Nominal discount rate  
Expected inflation rate  
Real discount rate 
Expected rate of salary increases 
Medical cost trend rates 
Retirement age 
2017 
Nominal discount rate  
Expected inflation rate  
Real discount rate 
Expected rate of salary increases 
Medical cost trend rates 
Retirement age 

1.9 % 
1.4 % 
0.5 % 
1.9 % 
N/A 
63/64/66 

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

Movement in present value of employee benefits defined benefit obligation 

2.0 % 
1.5 % 
0.5 % 
1.8 % 
3.0 % 
63/64/66 

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

EUR million 
Total 

72 796 

Present value as at 31.12.2017 
Recognised in statement of 
financial performance 
Current service cost 
Interest expense 
Recognised in net assets 
Remeasurements in employee benefits 
liabilities 

Actuarial (gains)/losses from 
experience 
Actuarial (gains)/losses from 
demographic assumptions 
Actuarial (gains)/losses from 
financial assumptions 

Other 
Benefits paid 
Present value as at 31.12.2018 

Pension 
Scheme of 
European 
Officials  
63 951 

Other 
retirement 
benefit 
Schemes 
1 089 

Joint 
Sickness 
Insurance 
Scheme 

7 756 

2 716 
1 215 

3 380 

– 

 251 

 84 
 20 

 6 

– 

 270 
 155 

3 070 
1 391 

 4 

– 

3 390 

– 

 (20) 

 901 

1 132 

(1 496) 
70 017 

 (27) 
1 154 

 (96) 
8 990 

(1 619) 
80 160 

35 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

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

Present value as at 31.12.2017 
Net movement in plan assets 
Present value as at 31.12.2018 

EUR million 

 301 
 (5) 
 296 

Joint Sickness Insurance Scheme sensitivity 

A ten basis points change in the assumed medical cost trend rates would have the following effects: 

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

2018 
Increase 0.1%  Decrease 0.1% 

2017 
Increase 0.1%  Decrease 0.1% 

 12 

 (12) 

 11 

 (11) 

EUR million 

 253 

 (246) 

 220 

 (213) 

A ten basis points change in the assumed discount rate would have the following effects: 

Defined benefit obligation 

 (219) 

 226 

 (188) 

 194 

2018 
Increase 0.1%  Decrease 0.1% 

2017 
Increase 0.1%  Decrease 0.1% 

EUR million 

A ten basis points change in the expected salary increases rate would have the following effects: 

Defined benefit obligation 

 (26) 

 25 

 (25) 

 24 

2018 
Increase 0.1%  Decrease 0.1% 

2017 
Increase 0.1%  Decrease 0.1% 

EUR million 

A one year change in the assumed retirement age would have the following effects: 

Defined benefit obligation 

2018 

One year 
increase 
 (91) 

EUR million 

2017 

One year 
decrease 

 54 

One year 
increase 
 (82) 

One year 
decrease 

 44 

Pension Scheme of European Officials sensitivity 

A ten basis points change in the assumed discount rate would have the following effects: 

Defined benefit obligation 

(1 434) 

1 478 

(1 281) 

1 319 

2018 
Increase 0.1%  Decrease 0.1% 

2017 
Increase 0.1%  Decrease 0.1% 

EUR million 

A ten basis points change in the expected salary increases rate would have the following effects: 

Defined benefit obligation 

1 427 

(1 388) 

1 313 

(1 192) 

2018 
Increase 0.1%  Decrease 0.1% 

2017 
Increase 0.1%  Decrease 0.1% 

EUR million 

A one year change in the assumed retirement age would have the following effects: 

Defined benefit obligation 

2018 

One year 
increase 
 (573) 

EUR million 

2017 

One year 
decrease 
 645 

One year 
increase 
 (496) 

One year 
decrease 
 639 

36 

 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

2.10.  PROVISIONS 

Amount at 
31.12.2017 

Additional 
provisions 

Unused 
amounts 
reversed 

Amounts 
used 

Transfer 
between 
categories 

Change in 
estimation 

 49 
 20 
 29 
1 934 

1 115 
 27 
 87 
3 262 
2 617 

 270 
– 
 1 
– 

 590 
– 
 24 
 885 
 693 

 (2) 
 (20) 
 (17) 
– 

 (7) 
 (27) 
 (30) 
 (105) 
 (30) 

 (47) 
– 
 (1) 
 (34) 

 (149) 
– 
 (13) 
 (243) 
 (52) 

– 
– 
– 
– 

– 
– 
– 
– 
 (250) 

– 
– 
 0 
 32 

 2 
– 
– 
 34 
 36 

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

EUR million 
Amount at 
31.12.2018 

 270 
– 
 11 
1 933 

1 551 
– 
 68 
3 833 
3 013 

Current 

 645 

 192 

 (74) 

 (191) 

 250 

 (1) 

 820 

2.11.  FINANCIAL LIABILITIES 

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

Note 

31.12.2018 

31.12.2017 

EUR million 

2.11.1 
2.11.2 

52 757 
 7 

49 412 
 2 

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

2.11.1 
2.11.2 

Total 

52 764 

49 414 

2 475 
 15 

2 489 
55 253 

6 813 
– 

6 813 
56 227 

2.11.1.  Financial liabilities at amortised cost  

Borrowings for financial assistance 
Other financial liabilities 

Total 

Non-current 
Current 

Note 
2.11.1.1 
2.11.1.2 

31.12.2018 
53 775 
1 456 

55 231 

52 757 
2 475 

EUR million 

31.12.2017 
54 744 
1 482 

56 225 

49 412 
6 813 

37 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

2.11.1.1.  Borrowings for financial assistance 

Total at 31.12.2017 
New borrowings 
Repayments 
Exchange differences 
Changes in carrying amounts 
Total at 31.12.2018 
Non-current 
Current 

EFSM 
47 456 
4 500 
(4 500) 
– 
 (56) 
47 400 
46 800 
 600 

BOP 
3 114 
– 
(1 350) 
– 
 (30) 
1 734 
 200 
1 534 

MFA 
3 924 
 515 
 (56) 
– 
 5 
4 388 
4 309 
 79 

Euratom 
 250 
 50 
 (46) 
 (0) 
 0 
 254 
 213 
 41 

EUR million 
Total 
54 744 
5 065 
(5 952) 
 (0) 
 (82) 
53 775 
51 521 
2 254 

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) 

2.11.1.2.  Other financial liabilities 

31.12.2018 
0 % - 3.82 % 
0 % - 5.68 % 
2.88 % - 3.38 % 
0.50 % - 3.75 % 

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

31.12.2018 

EUR million 
31.12.2017 

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 

 860 
 235 
 141 
1 235 

 64 
 23 
 125 
 9 
 221 
1 456 

Land and buildings 
Other fixed assets 
Total at 31.12.2018 
Interest element 
Total future minimum lease 
payments at 31.12.2018 
Total future minimum lease payments     
at 31.12.2017 

< 1 year 

Future amounts to be paid 
> 5 years 

1 - 5 years 

 58 
 6 
 64 
 51 
 115 

113 

 276 
 8 
 283 
 166 
 450 

447 

 576 
– 
 576 
 134 
 710 

821 

 918 
 258 
 188 
1 363 

 58 
 22 
 13 
 25 
 118 
1 482 

EUR million 

Total 
Liability 
 910 
 14 
 924 
 351 
1 275 

1 381 

38 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

2.11.2.  Financial liabilities at fair value through surplus and deficit  

Type of derivative 

Guarantee on equity portfolio 
FX option (put spread) 
Total 
Non-current 
Current 

31.12.2018 

31.12.2017 

EUR million 

Notional 
amount  
 536 
 11 
 546 
 82 
 464 

Fair value 

 20 
 2 
 22 
 7 
 15 

Notional 
amount  
– 
 9 
 9 
 9 
– 

Fair value 

– 
 2 
 2 
 2 
– 

Fair value hierarchy of financial liabilities measured at fair value 

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 

31.12.2018 
– 
 2 
 20 

EUR million 
31.12.2017 
– 
 2 
– 

 22 

 2 

39 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

2.12.  PAYABLES 

Gross 
Amount 

Adjust- 
ments* 

Net Amount at 
31.12.2018 

Gross 
Amount 

Adjust- 
ments* 

EUR million 
Net Amount at 
31.12.2017 

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 

 247 

 247 

 481 

10 761 

(1 724) 

5 195 

 632 

1 461 

 (496) 

 (75) 

 (179) 

9 037 

4 699 

 557 

1 282 

12 602 

4 183 

 748 

1 563 

 (883) 

 (264) 

 (280) 

 (144) 

 481 

11 719 

3 919 

 467 

1 419 

18 296 

(2 475) 

15 822 

19 577 

(1 571) 

18 006 

14 772 

 769 

1 176 

35 013 

N/A 

N/A 

N/A 

(2 475) 

14 772 

 769 

1 176 

32 539 

11 534 

8 836 

1 000 

40 947 

N/A 

N/A 

N/A 

(1 571) 

11 534 

8 836 

1 000 

39 376 

* 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 

31.12.2018 
62 263 
 213 
 24 
62 500 

31.12.2018 
29 387 
18 687 
5 863 
2 321 
6 005 
62 263 

EUR million 
31.12.2017 
63 070 
 219 
 24 
63 314 

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

40 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

NET ASSETS 

2.14.  RESERVES 

Fair value reserve 
Guarantee Fund reserve 
Other reserves 
Total 

2.14.1.   Fair value reserve 

Note 
2.14.1 

31.12.2018 
 229 
2 849 
 108 
3 186 

EUR million 

31.12.2017 
 275 
2 663 
 125 
3 062 

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 

2018 
 (68) 
 22 
 (46) 

EUR million 
2017 
 (8) 
 18 
 10 

2.15.  AMOUNTS TO BE CALLED FROM MEMBER STATES 

Amounts to be called from Member States at 31.12.2017 
Return of 2017 budget surplus to Member States 
Movement in Guarantee Fund reserve 
Remeasurements in employee benefits liability 
Other reserve movements 
Economic result of the year 
Total amounts to be called from Member States at 31.12.2018 

EUR million 

78 077 
 556 
 186 
4 432 
 7 
(14 372) 
68 885 

41 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

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 

2018 
22 763 
 4 
22 767 

EUR million 
2017 
20 475 
 45 
20 520 

REVENUE FROM NON-EXCHANGE TRANSACTIONS: 
TRANSFERS 

3.2.  RECOVERY OF EXPENSES 

Shared management 
Direct management 
Indirect management 
Total 

2018 
2 116 
 65 
 31 
2 213 

EUR million 

2017 
1 775 
 81 
 23 
1 879 

3.3.  OTHER REVENUE FROM NON-EXCHANGE 

TRANSACTIONS 

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

2018 
1 347 
 954 
 594 
 85 
 97 
 4 
 (726) 
(3 493) 
 465 
 (674) 

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

42 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

REVENUE FROM EXCHANGE TRANSACTIONS  

3.4.  FINANCIAL REVENUE 

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

2018 

1 458 
1 259 
 63 
 121 
 103 
 29 

 23 
 48 
3 103 

EUR million 
2017 

 217 
1 371 
 36 
 61 
 23 
 57 

 26 
 28 
1 820 

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 
Fixed assets related revenue 
Other 
Total 

EXPENSES 

3.6.  SHARED MANAGEMENT 

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 

43 

2018 
 318 
 54 
 18 
 37 
 7 
 281 
 716 

2018 
43 527 
13 149 

30 230 
11 935 
2 826 
101 666 

2018 
8 146 
8 962 
 468 
17 576 

EUR million 
2017 
 266 
 51 
 26 
 21 
6 
 321 
 692 

EUR million 
2017 
44 289 
11 359 

17 650 
7 353 
1 253 
81 905 

EUR million 
2017 
8 855 
6 700 
 208 
15 763 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

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 
Total 

3.11.  OTHER EXPENSES 

Fixed assets related expenses 
Administrative and IT expenses 
Adjustment of provisions 
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 

44 

2018 
3 622 
 679 
3 337 
3 569 
11 208 

2018 
3 328 
4 461 
7 789 

2018 

1 252 
 25 
 56 
 25 
 126 
 20 
 95 

 41 
1 640 

2018 
 953 
 831 
 919 
 470 
 328 
 195 
 1 
 322 
4 019 

2018 
 373 
 58 
 430 

EUR million 
2017 
3 429 
1 101 
3 014 
1 478 
9 022 

EUR million 
2017 
3 186 
3 809 
6 995 

EUR million 
2017 

1 363 
 21 
 56 
 39 
 324 
 2 
 12 

 33 
1 849 

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

EUR million 
2017 
 366 
 58 
 424 

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

Annual accounts of the European Commission 2018 

Smart and 
inclusive 
growth 

Sustainable 
growth 

Security 
and 
citizenship 

Global 
Europe 

Administration 

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

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 
Finance costs 
Other expenses 

– 
– 
– 
– 
1 395 
1 223 
2 619 
 282 
 170 
 453 

3 072 

– 
– 
(30 230) 
(11 935) 
 (437) 
(11 565) 

(2 767) 
 (505) 

(2 696) 
(1 675) 
 (149) 
(1 945) 

– 
– 
– 
– 
 777 
 48 
 825 
 0 
 (14) 
 (13) 

 812 

(43 527) 
(13 149) 
– 
– 
 (596) 
 (571) 

 2 
 (74) 

 (0) 
 (369) 
 (22) 
 (313) 

– 
– 
– 
– 
 6 
 109 
 115 
 0 
 (8) 
 (8) 

 107 

– 
– 
– 
– 
(1 762) 
 (930) 

 (810) 
 (202) 

 2 
 (447) 
 (0) 
 (137) 

Total expenses 
Economic result of the year 

(63 903) 
(60 831) 

(58 620) 
(57 808) 

(4 287) 
(4 180) 

– 
– 
– 
– 
 35 
 228 
 262 
 16 
 6 
 23 

 285 

– 
– 
– 
– 
 (31) 
(4 496) 

 (48) 
(3 236) 

 (875) 
 (699) 
 (16) 
 (109) 

(9 510) 
(9 225) 

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

45 

Not 
assigned 
to MFF 
headings* 
105 780 
22 767 
17 624 
6 740 
 0 
(3 267) 
149 644 
2 805 
 318 
3 123 

– 
– 
– 
– 
 0 
 985 
 985 
 0 
 242 
 242 

1 227 

152 767 

– 
– 
– 
– 
– 
 (13) 

– 
 (0) 

– 
– 
– 
– 
– 
 0 

– 
– 

 (0) 
(4 599) 
 (68) 
(1 182) 

(5 861) 
(4 634) 

– 
– 
(1 385) 
 (332) 

(1 717) 
151 049 

EUR million 

Total 

105 780 
22 767 
17 624 
6 740 
2 213 
 (674) 
154 450 
3 103 
 716 
3 819 

158 270 

(43 527) 
(13 149) 
(30 230) 
(11 935) 
(2 826) 
(17 576) 

(3 622) 
(4 016) 

(3 569) 
(7 789) 
(1 640) 
(4 019) 

(143 897) 
14 372 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

4. 

CONTINGENT LIABILITIES AND ASSETS 

4.1.  CONTINGENT LIABILITIES 

4.1.1.  Budgetary guarantees 

Ceiling 

40 417 

31.12.2018 

Signed 

30 889 

Disbursed 

20 510 

Ceiling 

37 479 

31.12.2017 

Signed 

28 950 

EUR million 

Disbursed 

19 972 

25 898 

66 315 

19 842 

50 731 

15 764 

36 273 

16 000 

53 479 

13 473 

42 423 

10 128 

30 100 

EIB external 
lending mandate 
guarantees 
EFSI guarantee 

Total 

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

31.12.2018 

31.12.2017 

  Drawn 

  Undrawn 

Total 

  Drawn 

  Undrawn 

Total 

47 400 

1 734 

4 388 

 254 

53 775 

– 

– 

 980 

 200 

1 180 

47 400 

47 456 

1 734 

5 368 

 454 

3 114 

3 924 

 250 

54 955 

54 744 

– 

– 

 460 

 250 

 710 

47 456 

3 114 

4 384 

 500 

55 454 

EUR million 

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 

31.12.2018 
1 467 
 642 
 579 
 29 
2 717 

EUR million 
31.12.2017 
1 297 
 654 
 490 
 32 
2 473 

31.12.2018 
3 187 
 653 
 26 
1 823 
5 688 

EUR million 

31.12.2017 
3 242 
1 737 
 3 
 438 
5 420 

46 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

4.2.  CONTINGENT ASSETS 

Guarantees received: 
   Performance guarantees 
   Other guarantees 
Other contingent assets 
Total 

31.12.2018 

EUR million 
31.12.2017 

 79 
 7 
 25 
111 

89 
5 
32 
125 

47 

 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

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 

31.12.2018 
234 621 

EUR million 

31.12.2017 
220 479 

143 883 

211 688 

14 592 
393 097 

16 267 
448 434 

5.1.  OUTSTANDING BUDGETARY COMMITMENTS NOT YET 

EXPENSED 

Outstanding budgetary commitments not yet expensed 

31.12.2018 
234 621 

EUR million 
31.12.2017 
220 479 

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

Funds 

European Regional Development 
Fund and Cohesion Fund 
European Social Fund 
European Neighbourhood Policy 
Instrument 
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 

Financial 
framework 
2014-2020 (A) 

Legal 
commitments 
concluded (B) 

Budget 

commitments    

(C ) 

262 408 

262 408 

179 831 

92 935 

92 819 

65 230 

EUR million 

Legal 
commitments 
less budget 
commitments 
(B-C) 

82 578 

27 588 
– 

3 814 

3 814 

2 670 

1 144 

359 157 

359 041 

247 731 

111 310 

100 079 

100 079 

70 748 

29 331 

5 749 

5 749 

4 048 

1 702 

105 828 

105 828 

74 795 

31 033 

5 028 
3 016 
8 044 

4 393 
2 883 
7 276 

3 577 
2 159 
5 736 

 816 
 724 
1 540 

Total 

473 030 

472 145 

328 262 

143 883 

48 

 
  
 
 
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

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 

31.12.2018 
11 554 
1 267 
 493 
 46 
 796 
 435 
14 592 

EUR million 

31.12.2017 
12 676 
1 841 
 253 
 133 
 868 
 497 
16 267 

Future amounts to be paid 

EUR million 

Buildings 
IT materials and other equipment 
Total 

< 1 year 
 139 
 3 
 142 

1- 5 years 
 351 
 6 
 357 

> 5 years 
 298 
– 
 298 

Total 
 787 
 9 
 796 

49 

 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

6. 

FINANCIAL INSTRUMENTS DISCLOSURES 

6.1.  CURRENCY RISKS 

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

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 

USD 

GBP 

DKK 

31.12.2018 
SEK 

EUR 

Other 

Total 

EUR million 

 619 
 (475) 

 6 
– 
 43 
 193 

 57 
– 

– 
4 109 
1 520 
5 686 

 18 
– 

– 
 98 
 287 
 403 

 7 
– 

– 
 108 
 406 
 522 

13 220 
 491 

 53 
19 777 
13 197 
46 737 

 17 
– 

 5 
 226 
1 493 
1 741 

13 937 
 16 

 64 
24 318 
16 946 
55 282 

– 

– 

– 

– 

 (20) 

 (2) 

 (22) 

 (0) 
 (0) 
 193 

– 
– 
5 686 

– 
– 
 403 

– 
– 
 522 

(32 538) 
(32 558) 
14 179 

 (1) 
 (2) 
1 738 

(32 539) 
(32 561) 
22 721 

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 

 (0) 
 (0) 
3 785 
Total 
* Excluding back-to-back loans for financial assistance.  

 (0) 
 (0) 
 96 

USD 

GBP 

DKK 

31.12.2017 
SEK 

EUR 

Other 

Total 

EUR million 

 680 
 (632) 

 6 
– 
 42 
 97 

– 

 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) 

– 
– 
 105 

 (1) 
 (1) 
 833 

(39 374) 
(39 374) 
1 395 

 (1) 
 (3) 
1 690 

(39 376) 
(39 378) 
7 904 

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

2018 
2017 

2018 
2017 

Economic result 

EUR million 

USD 
 (5) 
 (3) 

GBP 

 (512) 
 (339) 

DKK 

 (35) 
 (8) 

SEK 

 (47) 
 (71) 

USD 

 (13) 
 (5) 

Net assets 
GBP 

 (5) 
 (5) 

DKK 

 (2) 
 (2) 

EUR million 

SEK 

 (1) 
 (5) 

50 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

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

2018 
2017 

2018 
2017 

USD 
 6 
 4 

USD 
 16 
 7 

Economic result 

GBP 

 625 
 414 

Net assets 
GBP 
 6 
 6 

DKK 
 43 
 10 

DKK 
 2 
 2 

EUR million 

SEK 
 57 
 86 

EUR million 

SEK 
 1 
 6 

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 million 

Effect on net 
assets 

 (303) 
 325 
 (305) 
 324 

2018: Available for sale financial assets 

2017: Available for sale financial assets 

6.3.  CREDIT RISK 

Analysis of the age of financial assets that are not impaired 

Total 

53 840 
24 318 
 16 

78 174 
54 877 
12 040 
 23 

Neither 
past due 
nor 
impaired 

53 840 
14 399 
 16 

68 254 
54 877 
8 587 
 23 

EUR million 

Past due but not impaired 

< 1 year 
– 
6 577 
– 

1-5 years 
– 
3 208 
– 

> 5 years 
– 
 134 
– 

6 577 
 0 
2 887 
– 

3 208 
– 
 359 
– 

 134 
– 
 208 
– 

66 940 

63 486 

2 887 

 359 

 208 

Loans 
Receivables and recoverables 
Financial assets at fair value 
through surplus or deficit 
Total at 31.12.2018 
Loans 
Receivables and recoverables 
Financial assets at fair value 
through surplus or deficit 
Total at 31.12.2017 

51 

 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

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

Available for 
sale* 

Financial 
assets at 
FVSD** 

Loans  

Receivables 
and 
recoverables 

31.12.2018 

EUR million 

Cash 

Total 

Total 

12 487 

 16 

53 840 

8 097 

2 903 

1 487 

– 

 16 

– 

– 

– 

– 

23 513 

25 774 

4 488 

8 546 

 746 

1 454 

 199 

13 941 

2 622 

 163 

 217 

30 600 

29 784 

28 877 

4 904 

12 487 

 16 

53 775 

10 944 

16 942 

94 165 

– 

– 

– 

– 

– 

– 

 62 

 2 

 64 

3 455 

 0 

3 455 

14 399 

 3 

– 

 3 

16 946 

3 520 

 2 

3 522 

97 687 

EUR million 

Available for 
sale* 

Financial 
assets at 
FVSD** 

Loans  

Receivables 
and 
recoverables 

Cash 

Total 

31.12.2017 

6 989 

1 569 

1 831 

– 

 16 

– 

– 

– 

 42 

23 584 

27 195 

3 977 

2 938 

 283 

 842 

 108 

18 436 

3 851 

 442 

 381 

28 422 

29 287 

30 311 

4 465 

10 390 

 16 

54 799 

4 172 

23 109 

92 485 

Counterparties 
with external 
credit rating 
Prime and high grade 

Upper medium grade 

Lower medium grade 

Non-investment 
grade 

Counterparties 
without external 
credit rating 
Debtors without 
defaults in the past 
Debtors with defaults 
in the past 

Counterparties 
with external 
credit rating 
Prime and high grade 

Upper medium grade 

Lower medium grade 

Non-investment 
grade 

Counterparties 
without external 
credit rating 
Debtors without 
defaults in the past 
Debtors with defaults 
in the past 

– 

– 

– 

 6 

– 

 6 

 23 

 78 

– 

 78 

54 877 

4 414 

 1 

4 415 

8 586 

 3 

– 

 3 

23 113 

4 502 

 1 

4 503 

96 988 

Total 

10 390 

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

* 
**   Financial assets at fair value through surplus or deficit. 

6.4.  LIQUIDITY RISK 

Maturity analysis of financial liabilities by remaining contractual maturity 

Borrowings 
Payables 
Other financial liabilities 
Total at 31.12.2018 
Borrowings 
Payables 
Other financial liabilities 
Total at 31.12.2017 

1-5 years 
(17 363) 
– 
 (533) 
(17 897) 
(14 769) 
– 
 (556) 
(15 325) 

> 5 years 
(34 158) 
– 
 (702) 
(34 860) 
(33 279) 
– 
 (807) 
(34 087) 

EUR million 
Total 
(53 775) 
(32 539) 
(1 456) 
(87 770) 
(54 744) 
(39 376) 
(1 482) 
(95 601) 

< 1 year 

(2 254) 
(32 539) 
 (221) 
(35 013) 
(6 695) 
(39 376) 
 (118) 
(46 189) 

52 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

Financial instruments at fair value through surplus or deficit  

Derivative pay leg 
Derivative receive leg 
Net cash flows at 31.12.2018 
Derivative pay leg 
Derivative receive leg 
Net cash flows at 31.12.2017 

< 1 year 

 (490) 
 477 
 (14) 
 (634) 
 638 
 5 

1-5 years 
 (2) 
– 
 (2) 
 (2) 
– 
 (2) 

> 5 years 
 (6) 
– 
 (6) 
– 
– 
– 

EUR million 
Total 

 (498) 
 477 
 (21) 
 (635) 
 638 
 3 

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 2018 

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 2018 

8. 

EVENTS AFTER THE BALANCE SHEET DATE 

At  the  date  of  signature  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. 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 2018 

EUROPEAN COMMISSION 
FINANCIAL YEAR 2018 

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.

56 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

CONTENTS 

EU BUDGET RESULT........................................................................................ 59 

STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS ....................... 60 

1.

2.

IMPLEMENTATION OF EC BUDGET REVENUE .............................................. 63 

IMPLEMENTATION OF EC BUDGET EXPENDITURE ........................................ 64 

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 ............................................................................. 64 

MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS .................. 65 

MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ......................... 66 

MFF: MOVEMENTS IN COMMITMENTS OUTSTANDING (RAL) .................... 67 

MFF: COMMITMENTS OUTSTANDING BY YEAR OF ORIGIN ...................... 68 

POLICY AREA: BREAKDOWN AND CHANGES IN COMMITMENT AND PAYMENT 
APPROPRIATIONS ............................................................................. 69 

POLICY AREA: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS ..... 71 

POLICY AREA: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ............ 73 

POLICY AREA: MOVEMENTS IN COMMITMENTS OUTSTANDING (RAL) ....... 75 

2.10.  POLICY AREA: COMMITMENTS OUTSTANDING BY YEAR OF ORIGIN ......... 77 

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

57 

 
 
 
 
 
Annual accounts of the European Commission 2018 

EU BUDGET RESULT 

Revenue for the financial year 

Payments against current year appropriations 

Payment appropriations carried over to  year N+1 

Cancellation of unused appropriations carried over from year N-1 

Evolution of assigned revenue 

Exchange rate differences for the year 

Budget result 

EUR million 

2018 

2017 

159 318 

139 691 

(154 833) 

(135 764) 

(1 675) 

(1 796) 

 106 

 40 

(1 114) 

(1 450) 

 (1) 

1 802 

 (166) 

 555 

58 

 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

STATEMENT OF COMPARISON OF BUDGET AND ACTUAL 
AMOUNTS 

Title 

Initial adopted 
budget 

Final adopted 
budget 

Entitlements 
established 

EUR million 

Revenue 

1  Own resources 

   11 - Sugar levies 

   12 - Customs duties 

   13 - VAT 

   14 - GNI 

142 832 

142 364 

142 373 

142 330 

– 

 (93) 

 (85) 

 (85) 

22 844 

20 165 

20 360 

20 317 

17 250 

17 149 

17 133 

17 133 

102 739 

105 143 

104 979 

104 979 

   15 - Correction of budgetary imbalances 

   16 - Reduction of GNI based contribution of the 
Netherlands and Sweden 

3  Surpluses, balances and adjustments 

– 

– 

– 

– 

– 

 (19) 

 (19) 

 556 

 581 

 6 

 6 

 581 

4  Miscellaneous community taxes, levies and duties 

1 181 

1 181 

1 191 

1 182 

5 

6 

Revenue accruing from the administrative operation 
of the institution 

Contributions and refunds in connection with union 
agreements and programmes 

7  Default interest and fines 

8  Borrowing and lending operations 

9  Miscellaneous revenue 

  Total 

 45 

 110 

 115 

 6 

 25 

 45 

 277 

 264 

 110 

13 316 

12 761 

 115 

14 592 

1 473 

 6 

 25 

 39 

 19 

 39 

 12 

144 315 

144 401 

172 389 

158 643 

59 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

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

MFF Heading 

Initial adopted 
budget 

Final adopted 
budget 

1  Smart and inclusive growth 

77 534 

77 532 

    1a: Competitiveness for growth and jobs 

22 001 

22 000 

    1b: Economic, social and territorial cohesion 

55 532 

55 532 

2  Sustainable growth: natural resources 

59 285 

59 239 

Total 
appropriations 
available 

EUR million 

Commitments 
made 

89 649 

25 864 

63 785 

62 419 

87 357 

23 773 

63 585 

60 560 

    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 

43 235 

43 233 

45 284 

44 364 

3 493 

9 569 

5 650 

– 

– 

3 492 

4 015 

3 855 

10 379 

11 448 

11 062 

5 650 

6 043 

5 845 

– 

– 

– 

– 

– 

– 

 567 

 388 

 429 

 180 

156 098 

156 681 

174 003 

168 859 

60 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

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

MFF Heading 

Initial adopted 
budget 

Final adopted 
budget 

Total 
appropriations 
available 

EUR million 

Payments 
made 

1  Smart and inclusive growth 

66 624 

66 733 

80 917 

75 876 

    1a: Competitiveness for growth and jobs 

20 097 

20 155 

25 073 

21 408 

    1b: Economic, social and territorial cohesion 

46 527 

46 578 

55 844 

54 468 

2  Sustainable growth: natural resources 

56 084 

56 241 

59 648 

58 046 

    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  

43 189 

43 180 

45 436 

44 310 

2 981 

8 906 

5 651 

– 

– 

3 013 

8 813 

5 651 

– 

– 

3 305 

10 788 

6 392 

– 

– 

3 108 

9 519 

5 804 

– 

– 

9  Special Instruments 

 420 

 302 

 340 

 180 

Total 

140 666 

140 753 

161 390 

152 533 

61 

 
 
 
 
 
 
 
 
 
 
 
  
 
1.

  IMPLEMENTATION OF EC BUDGET REVENUE 

Annual accounts of the European Commission 2018 

Title 

Income 
appropriations 

Initial 
budget 
adopted 

Final 
budget 
adopted 

Entitlements established 

Revenue 

Current 
year 

Carried 
over 

Total 

On 
entitlements of 
current year 

On 
entitlements 
carried over 

Total 

  EUR million 

Receipts 
as % of 
budget 

Out- 
standing 

1  Own resources 

142 832 

142 364 

142 334 

 39 

142 373 

142 329 

 0 

142 330 

100 % 

3  Surpluses, balances and adjustments 

– 

 556 

 581 

– 

 581 

 581 

– 

 581 

105 % 

1 181 

1 181 

1 181 

 11 

1 191 

1 171 

 11 

1 182 

100 % 

 44 

– 

 10 

4 

Miscellaneous community taxes, 
levies and duties 

5 

6 

Revenue accruing from the 
administrative operation of the 
institution 

Contributions and refunds in 
connection with union agreements 
and programmes 

 45 

 45 

 259 

 18 

 277 

 250 

 14 

 264 

587 % 

 13 

 110 

 110 

13 008 

 308 

13 316 

12 606 

 155 

12 761  11601 % 

 555 

7  Default interest and fines 

 115 

 115 

6 778 

7 814 

14 592 

 897 

 576 

1 473 

1281 % 

13 119 

8  Borrowing and lending operations 

9  Miscellaneous revenue 

 6 

 25 

 6 

 25 

 24 

 14 

 15 

 6 

 39 

 19 

 24 

 11 

 15 

 1 

 39 

631 % 

 12 

49 % 

– 

 7 

  Total 

144 315  144 401  164 179 

8 210 

172 389 

157 870 

 773 

158 643 

110 % 

13 747 

62 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
2.

  IMPLEMENTATION OF EC BUDGET EXPENDITURE  

Annual accounts of the European Commission 2018 

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

MFF Heading 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

Total 
appropr. 
available 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriat. 

Carry-
overs 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

6=3+4+5 

7 

8 

9=7+8 

10 

11 

  EUR million 

Total 
appropr. 
available 

12=9+10 
+11 

1  Smart and inclusive growth 

77 534 

 (2) 

77 532 

 123 

11 994 

89 649 

66 624 

 108 

66 733 

 120 

14 064 

80 917 

    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 

22 001 

 (2) 

22 000 

 4 

3 861 

25 864 

20 097 

 57 

20 155 

 108 

4 811 

25 073 

55 532 

– 

55 532 

 119 

8 133 

63 785 

46 527 

 51 

46 578 

 13 

9 253 

55 844 

59 285 

 (46) 

59 239 

 451 

2 729 

62 419 

56 084 

 157 

56 241 

 663 

2 744 

59 648 

43 235 

 (1) 

43 233 

 451 

1 601 

45 284 

43 189 

 (9) 

43 180 

 656 

1 601 

45 436 

3  Security and citizenship 

3 493 

 (1) 

3 492 

 247 

 276 

4 015 

2 981 

 32 

3 013 

 16 

 276 

3 305 

4  Global Europe 

5  Administration 

6  Compensations 

8 

Negative reserve and deficit 
carried over from the previous 
financial year  

9 569 

 810 

10 379 

 64 

1 005 

11 448 

8 906 

 (93) 

8 813 

 315 

1 659 

10 788 

5 650 

– 

– 

 0 

– 

– 

5 650 

– 

– 

– 

– 

– 

– 

 393 

6 043 

5 651 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

5 651 

 347 

 394 

6 392 

– 

– 

– 

– 

– 

– 

– 

– 

 41 

 429 

 420 

 (118) 

 302 

 0 

 38 

 340 

9  Special Instruments 

 567 

 (179) 

 388 

Total 

156 098 

 583  156 681 

 884  16 437  174 003  140 666 

 87  140 753 

1 462 

19 175 

161 390 

63 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.2.  MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Commission 2018 

MFF Heading 

Total 
appropr. 
available 

Commitments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriat. carried over 
to 2019 
carry-
overs by 
decision 

assigned 
revenue 

Total 

EUR million 

Appropriations lapsing 

from final 
adopted 
budget 

from 
carry- 
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

5=2+3+4  6=5/1 

7 

8 

9=7+8 

10 

11 

12 

1  Smart and inclusive growth 

89 649 

77 514 

 114 

9 729 

87 357 

97 % 

2 265 

 0 

2 265 

    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 

25 864 

21 988 

 4 

1 780 

23 773 

92 % 

2 080 

 0 

2 081 

63 785 

55 525 

 110 

7 949 

63 585  100 % 

 184 

– 

 184 

62 419 

58 774 

 442 

1 344 

60 560 

97 % 

1 385 

 460 

1 845 

45 284 

42 771 

 442 

1 152 

44 364 

98 % 

 449 

 460 

 908 

3  Security and citizenship 

4 015 

3 491 

 247 

 118 

3 855 

96 % 

4  Global Europe 

11 448 

10 377 

 64 

 621 

11 062 

97 % 

5  Administration 

6 043 

5 606 

6  Compensations 

8 

Negative reserve and deficit 
carried over from the 
previous financial year  

– 

– 

– 

– 

9  Special Instruments 

 429 

 180 

– 

– 

– 

– 

 239 

5 845 

97 % 

– 

– 

0 % 

0 % 

– 

– 

– 

 158 

 383 

 154 

– 

– 

– 

– 

 1 

– 

– 

 158 

 383 

 155 

– 

– 

 180 

42 % 

 41 

 64 

 104 

 144 

 18 

 11 

 7 

 6 

 3 

 2 

 2 

 43 

– 

– 

 9 

 0 

 9 

 9 

 9 

– 

– 

– 

– 

– 

– 

Total 

174 003  155 941 

 866 

12 051  168 859  97 % 

4 386 

 525 

4 911 

 215 

 18 

64 

Total 

13=10+ 
11+12 

 27 

 11 

 16 

 15 

 11 

 2 

 2 

 44 

– 

– 

 144 

 233 

 0 

 0 

– 

– 

– 

 0 

 0 

 0 

– 

– 

– 

 0 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

2.3.  MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS 

MFF Heading 

Total 
appropr. 
available 

Payments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over to 
2019 

auto- 
matic 
carry-
overs 

carry-
overs by 
decis. 

assigned 
revenue 

Total 

1 

2 

3 

4 

5=2+ 
3+4 

6=5/1 

7 

8 

9 

10=7+ 
8+9 

EUR million 

Appropriations lapsing   

from 
final 
adopted 
budget 

from 
carry-  
overs 

from 
assigned 
revenue 

11 

12 

13 

Total 

14=11+ 
12+13 

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 

80 917 

66 540 

 107 

9 230 

75 876 

94 % 

 130 

 3 

4 833  4 966 

 59 

 14 

25 073 

19 993 

 97 

1 318 

21 408 

85 % 

 117 

 3 

3 492  3 612 

 41 

 11 

55 844 

46 547 

 10 

7 912 

54 468 

98 % 

 13 

– 

1 341  1 354 

 18 

 3 

59 648 

55 576 

 643 

1 827 

58 046 

97 % 

 193 

 460 

 918  1 570 

 13 

 20 

45 436 

42 533 

 636 

1 142 

44 310 

98 % 

 186 

 460 

 459  1 104 

 2 

 20 

3  Security and citizenship 

3 305 

2 980 

 11 

4  Global Europe 

5  Administration 

6  Compensations 

8 

Negative reserve and 
deficit carried over from 
the previous financial 
year  

10 788 

8 711 

 310 

6 392 

5 296 

 322 

– 

– 

– 

– 

– 

– 

 117 

 498 

 186 

– 

– 

3 108 

94 % 

9 519 

88 % 

 9 

 65 

5 804 

91 % 

 310 

– 

0 % 

– 

– 

0 % 

 0 

9  Special Instruments 

 340 

 157 

 0 

 22 

 180 

53 % 

 0 

– 

– 

 2 

– 

– 

– 

 159 

 167 

1 161  1 226 

 207 

 519 

– 

– 

– 

– 

 25 

 37 

 44 

– 

– 

 5 

 5 

 25 

– 

– 

 16 

 16 

 144 

 0 

  Total 

161 390  139 260  1 394  11 879  152 533  95 % 

 706 

 465 

7 294  8 465 

 322 

 68 

 1 

 1 

– 

– 

– 

 0 

 0 

 1 

– 

– 

– 

 2 

 74 

 53 

 21 

 33 

 22 

 29 

 42 

 70 

– 

– 

 144 

 392 

65 

 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.4.  MFF: MOVEMENTS IN COMMITMENTS OUTSTANDING (RAL) 

Annual accounts of the European Commission 2018 

Commitments outstanding at the end of previous year 

Commitments of the current year 

MFF Heading 

Commit. carried 
forward from 
prev. year 

Decommitments/ 
Revaluations/ 
Cancellations 

Payments 

Commitm. 
outstanding 
at year-end 

1 

2 

3 

4=1+2+3 

Commit. 
made 
during the 
year 
5 

Payments 

6 

Cancellation of 
commitm. 
which cannot 
be carried-over 
7 

Commitm. 
outstanding 
at year-end 

1  Smart and inclusive growth 

196 837 

(1 323) 

(67 640) 

127 874 

87 357 

(8 237) 

35 576 

 (932) 

(13 691) 

20 953 

23 773 

(7 717) 

EUR million 

Total 
commitm. 
outstanding at 
end of the 
year 

8=5+6+7 

9=4+8 

 (4) 

 (4) 

79 117 

16 052 

206 991 

37 006 

    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 

161 260 

 (392) 

(53 948) 

106 920 

63 585 

 (520) 

 (0) 

63 064 

169 985 

37 883 

 (360) 

(13 466) 

24 058 

60 560 

(44 580) 

 (0) 

15 980 

40 037 

 309 

5 194 

26 478 

 359 

– 

– 

 0 

 (14) 

 (228) 

 67 

44 364 

(44 082) 

 (107) 

(1 781) 

3 306 

3 855 

(1 327) 

 (667) 

(6 746) 

19 064 

11 062 

(2 773) 

 (26) 

 (330) 

– 

– 

– 

– 

 (0) 

 (0) 

 4 

– 

– 

– 

5 845 

(5 474) 

– 

– 

– 

– 

 180 

 (180) 

– 

– 

 (1) 

 (0) 

– 

– 

– 

 282 

2 528 

8 288 

 371 

– 

– 

 0 

 349 

5 834 

27 352 

 374 

– 

– 

 0 

Total 

266 751 

(2 483)  (89 963) 

174 305  168 859  (62 570) 

 (5) 

106 284 

280 589 

66 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.5.  MFF: COMMITMENTS OUTSTANDING BY YEAR OF ORIGIN 

Annual accounts of the European Commission 2018 

MFF Heading 

<2012 

2012 

2013 

2014 

2015 

2016 

2017 

2018 

Total 

1  Smart and inclusive growth 

1 355 

 744 

5 867 

3 807 

13 803 

37 234 

65 049 

79 131 

206 991 

2  Sustainable growth: natural resources 

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 

 186 

 50 

 56 

 67 

 461 

 56 

 311 

 45 

1 065 

 671 

1 526 

1 753 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

– 

 0 

– 

– 

– 

2 138 

 118 

2 920 

– 

– 

– 

– 

8 301 

12 411 

16 173 

40 037 

 901 

4 697 

2 069 

6 385 

 0 

– 

– 

– 

 3 

– 

– 

 (0) 

2 528 

8 335 

 371 

– 

– 

 0 

5 834 

27 352 

 374 

– 

– 

 0 

2 656 

1 538 

7 910 

5 916 

18 979 

51 133 

85 917 

106 539 

280 589 

EUR million 

67 

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

APPROPRIATIONS 

Annual accounts of the European Commission 2018 

Policy area 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carried
-over 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

Total 
appropr. 
available 

6=3+ 
4+5 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carried
-over 

Assigned 
revenue 

7 

8 

9=7+8 

10 

11 

EUR million 

Total 
appropr. 
available 

12=9+10 
+11 

01  Economic and financial affairs 

2 208 

02 

Internal market, industry, 
entrepreneurship and SMEs 

03  Competition 

04 

05 

Employment, social affairs 
and inclusion 
Agriculture and rural 
development 

06  Mobility and transport 

07  Environment 

08  Research and innovation 

09 

Communications networks, 
content and technology 

10  Direct research 

11  Maritime affairs and fisheries 

12 

Financial stability, financial 
services and capital markets 
union 

2 356 

 110 

4 008 

 498 

6 890 

2 133 

 404 

1 085 

 98 

 (8) 

 2 

2 306 

2 349 

 112 

– 

– 

– 

– 

14 505 

 (107) 

14 398 

 652 

 299 

2 958 

2 154 

2 648 

2 062 

 142 

 129 

2 296 

 282 

2 192 

 5 

 117 

 110 

 2 

 112 

2 263 

16 661 

12 208 

 (17) 

12 191 

 653 

 490 

 5 

3 231 

2 697 

 128 

3 322 

15 525 

 16 

 11 

 12 

58 160 

 (18) 

58 142 

 451 

2 626 

61 218 

55 463 

 169 

55 632 

 664 

2 528 

58 825 

 1 

 (0) 

 (1) 

 (1) 

4 008 

 498 

6 889 

– 

– 

– 

 239 

 18 

4 248 

2 267 

 (15) 

2 252 

 516 

 351 

 5 

 355 

1 320 

8 210 

6 472 

 (169) 

6 304 

2 132 

 4 

 378 

2 513 

2 259 

 (101) 

2 158 

– 

 404 

 (0) 

1 084 

– 

– 

– 

 580 

 142 

 983 

1 226 

 397 

 660 

 6 

 101 

 94 

 (0) 

 (0) 

 (1) 

 397 

 659 

 95 

 0 

 95 

 93 

 4 

 6 

 5 

 4 

 27 

 14 

 47 

 3 

 197 

 14 

1 987 

 445 

 534 

 270 

2 454 

 374 

8 317 

2 617 

 978 

 932 

 103 

13  Regional and urban policy 

39 812 

 318 

40 130 

 121 

5 964 

46 214 

34 133 

 126 

34 259 

14  Taxation and customs union 

15  Education and culture 

16  Communication 

17  Health and food safety 

18  Migration and home affairs 

 176 

3 806 

 213 

 599 

2 637 

 3 

 42 

 (1) 

 1 

 (0) 

 179 

3 848 

 212 

 600 

– 

– 

– 

– 

 11 

 625 

 12 

 45 

 189 

 168 

4 473 

3 503 

 224 

 645 

 212 

 563 

 (1) 

 118 

 (1) 

 (1) 

 167 

3 620 

 211 

 562 

2 637 

 247 

 246 

3 130 

2 258 

 (56) 

2 202 

 13 

 6 

 15 

 12 

 10 

 9 

5 994 

40 266 

 10 

 734 

 12 

 46 

 255 

 184 

4 369 

 236 

 619 

2 466 

68 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policy area 

19  Foreign policy instruments 

20  Trade 

21 

22 

23 

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

24  Fight against fraud 

25 

Commission's policy 
coordination and legal advice 
26  Commission's administration 

27  Budget 

28  Audit 

29  Statistics 

30 

Pensions and related 
expenditure 

31  Language services 

32  Energy 

33  Justice and consumers 

34  Climate action 

40  Reserves 

Total 

Annual accounts of the European Commission 2018 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carried
-over 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

Total 
appropr. 
available 

6=3+ 
4+5 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carried
-over 

Assigned 
revenue 

7 

8 

9=7+8 

10 

11 

EUR million 

Total 
appropr. 
available 

12=9+10 
+11 

 817 

 116 

 43 

 (2) 

 860 

 114 

3 486 

 4 

3 491 

3 891 

 543 

4 434 

– 

– 

 1 

– 

1 189 

 324 

1 513 

 62 

 82 

 245 

1 126 

 79 

 19 

 144 

1 899 

 399 

1 640 

 258 

 155 

 859 

– 

 (1) 

 40 

 (11) 

 (0) 

 (1) 

 82 

 243 

1 166 

 68 

 19 

 143 

– 

1 899 

 (7) 

 (1) 

 (1) 

 0 

 (674) 

 392 

1 639 

 257 

 155 

 184 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 47 

 3 

 907 

 117 

 705 

 115 

 45 

 (2) 

 750 

 112 

 3 

 3 

 62 

 3 

 815 

 119 

 232 

3 723 

3 249 

 (88) 

3 161 

 23 

 276 

3 460 

 112 

4 546 

3 681 

 (333) 

3 348 

 14 

 489 

3 850 

1 637 

1 196 

 344 

1 540 

 14 

 279 

1 833 

 80 

 6 

 243 

 19 

 0 

 12 

 86 

 274 

1 168 

 162 

 202 

1 532 

 62 

 0 

 12 

 9 

 1 

 19 

 2 

 79 

 217 

 8 

 1 

– 

 202 

1 368 

1 128 

 82 

 255 

 80 

 244 

 77 

 20 

 79 

 19 

 162 

 131 

– 

 (1) 

 39 

 (11) 

 (0) 

 15 

 68 

 19 

 146 

 17 

 1 

 6 

– 

1 901 

1 899 

– 

1 899 

 471 

 399 

1 857 

1 579 

 265 

 156 

 184 

 225 

 97 

 508 

 (7) 

 103 

 45 

 (9) 

 (383) 

 392 

 24 

1 682 

 270 

 88 

 125 

 6 

 5 

 5 

– 

 9 

 1 

 26 

 2 

 79 

 220 

 7 

 1 

– 

 94 

 21 

 178 

1 901 

 495 

1 908 

 281 

 93 

 125 

156 098 

 583  156 681 

 884  16 437  174 003  140 666 

 87  140 753  1 462 

19 175 

161 390 

69 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.7.  POLICY AREA: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Commission 2018 

Commitments made 

Policy area 

Total 
appropr. 
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

Total 

% 

Appropriations carried over 
to 2019 

assigned 
revenue 

carry-
overs by 
decision 

Total 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

EUR million 

Appropriations lapsing 

5=2+ 
3+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

01 

02 

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

2 958 

2 305 

2 648 

2 348 

03  Competition 

 117 

 110 

04 

05 

Employment, social affairs 
and inclusion 
Agriculture and rural 
development 

16 661 

14 388 

– 

– 

– 

– 

 381 

2 686 

91 % 

 271 

 173 

2 522 

95 % 

 126 

 3 

 113 

96 % 

 3 

2 080 

16 469 

99 % 

 183 

– 

– 

 1 

– 

 271 

 126 

 3 

 183 

61 218 

57 678 

 442 

1 225 

59 345 

97 % 

1 401 

 460 

1 860 

06  Mobility and transport 

4 248 

4 007 

07  Environment 

 516 

 498 

08  Research and innovation 

8 210 

6 889 

– 

– 

– 

 111 

4 118 

97 % 

 129 

 7 

 505 

98 % 

 11 

 616 

7 505 

91 % 

 704 

09 

Communications networks, 
content and technology 

2 513 

2 131 

 4 

 202 

2 337 

93 % 

 176 

10  Direct research 

 983 

 404 

11 

12 

Maritime affairs and 
fisheries 
Financial stability, financial 
services and capital 
markets union 

1 226 

1 082 

 101 

 95 

– 

– 

– 

 120 

 524 

53 % 

 459 

 140 

1 222 

100 % 

 3 

 98 

97 % 

13  Regional and urban policy 

46 214 

40 098 

 112 

5 881 

46 090 

100 % 

14 

Taxation and customs 
union 

 189 

 178 

15  Education and culture 

4 473 

3 847 

16  Communication 

 224 

 212 

17  Health and food safety 

 645 

 599 

– 

– 

– 

– 

 3 

 181 

96 % 

 407 

4 255 

95 % 

 218 

 7 

 23 

 219 

98 % 

 622 

96 % 

 5 

 22 

 2 

 3 

 83 

 8 

18  Migration and home affairs 

3 130 

2 636 

 247 

 103 

2 985 

95 % 

 143 

70 

– 

– 

– 

– 

– 

– 

– 

 129 

 11 

 704 

 176 

 459 

 2 

 3 

 30 

 113 

– 

 0 

– 

– 

– 

 8 

 218 

 5 

 22 

 143 

Total 

13=10+ 
11+12 

 1 

 1 

 1 

 9 

 13 

 1 

 1 

 0 

 0 

 0 

 2 

 0 

 11 

 0 

 1 

 0 

 1 

 2 

 1 

 1 

 1 

 9 

 4 

 1 

 1 

 0 

 0 

 0 

 2 

 0 

 2 

 0 

 1 

 0 

 1 

 2 

– 

– 

– 

– 

 9 

– 

– 

– 

 0 

– 

– 

– 

 9 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

 0 

 0 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

Commitments made 

Policy area 

Total 
appropr. 
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

Total 

% 

Appropriations carried over 
to 2019 

assigned 
revenue 

carry-
overs by 
decision 

Total 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

EUR million 

Appropriations lapsing 

5=2+ 
3+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

 22 

 1 

 69 

 45 

 6 

 0 

 5 

19  Foreign policy instruments 

 907 

 859 

20  Trade 

21 

22 

23 

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

 117 

 113 

3 723 

3 488 

4 546 

4 432 

– 

– 

 1 

– 

 25 

 2 

 885 

98 % 

 114 

98 % 

 164 

3 652 

98 % 

 67 

4 500 

99 % 

1 637 

1 512 

 62 

 56 

1 630 

100 % 

24  Fight against fraud 

 82 

 81 

25 

26 

Commission's policy 
coordination and legal 
advice 
Commission's 
administration 

27  Budget 

28  Audit 

29  Statistics 

30 

Pensions and related 
expenditure 

 255 

 242 

1 368 

1 165 

 77 

 20 

 68 

 19 

 162 

 142 

1 901 

1 881 

31  Language services 

 471 

 390 

32  Energy 

1 857 

1 633 

33  Justice and consumers 

 265 

 256 

34  Climate action 

40  Reserves 

Total 

 156 

 155 

 184 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 7 

 81 

98 % 

 249 

97 % 

 125 

1 290 

94 % 

 77 

 5 

 1 

 72 

94 % 

 20 

97 % 

 12 

 154 

95 % 

 2 

1 882 

99 % 

 4 

 1 

 7 

 0 

 54 

 43 

 5 

 1 

– 

 444 

94 % 

 25 

1 676 

90 % 

 174 

 261 

99 % 

 155 

99 % 

– 

0 % 

 3 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 22 

 1 

 69 

 45 

 6 

 0 

 5 

 77 

 4 

 1 

 7 

 0 

 25 

 174 

 3 

 0 

 0 

 1 

 2 

 2 

 0 

 1 

 2 

 1 

 0 

 0 

 1 

 19 

 2 

 6 

 0 

 0 

 34 

 34 

 150 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

 0 

– 

– 

 0 

– 

– 

– 

– 

– 

– 

174 003  155 941 

 866  12 051  168 859 

97 % 

4 386 

 525 

4 911 

 215 

 18 

 0 

71 

Total 

13=10+ 
11+12 

 0 

 1 

 2 

 2 

 0 

 1 

 2 

 1 

 0 

 0 

 1 

 19 

 2 

 6 

 0 

 0 

 150 

 233 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
2.8.  POLICY AREA: IMPLEMENTATION OF PAYMENT APPROPRIATIONS 

Annual accounts of the European Commission 2018 

Policy area 

Total 
appropr. 
available 

Payments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over to 
2019 

automatic 
carry-
overs 

carry-
overs 
by 
decis. 

assigned 
revenue 

Total 

1 

2 

3 

4 

5=2+ 
3+4 

6=5/1 

7 

8 

9 

10=7+ 
8+9 

EUR million 

Appropriations lapsing 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

11 

12 

13 

Total 

14=11+ 
12+13 

01 

02 

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

3 231 

2 258 

 281 

 82 

2 622  81 % 

 31 

– 

 571 

 602 

 7 

 0 

2 697 

2 176 

 14 

 163 

2 354  87 % 

 15 

– 

 327 

 341 

 1 

 1 

03  Competition 

 128 

 98 

 10 

 3 

 110  86 % 

15 525 

12 162 

 8 

2 482 

14 652  94 % 

 12 

 10 

 1 

– 

 3 

 16 

 840 

 850 

 1 

 19 

 1 

 4 

58 825 

54 946 

 644 

1 577 

57 166  97 % 

 194 

 460 

 951  1 605 

 34 

 20 

06  Mobility and transport 

2 454 

2 243 

 374 

 351 

 5 

 4 

 120 

2 367  96 % 

 9 

 363  97 % 

04 

05 

Employment, social 
affairs and inclusion 
Agriculture and rural 
development 

08 

07  Environment 
Research and 
innovation 
Communications 
networks, content and 
technology 
10  Direct research 

09 

11 

12 

13 

14 

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

8 317 

6 269 

 25 

 472 

6 766  81 % 

2 617 

2 133 

 12 

 113 

2 258  86 % 

 978 

 932 

 351 

 42 

 110 

 502  51 % 

 656 

 2 

 268 

 927  99 % 

 103 

 89 

 3 

 3 

 96  92 % 

40 266 

34 219 

 11 

5 437 

39 666  99 % 

15  Education and culture 

4 369 

3 599 

16  Communication 

 236 

 196 

 184 

 160 

 6 

 14 

 11 

 3 

 169  92 % 

 220 

3 833  88 % 

 6 

 213  91 % 

72 

 5 

 4 

 34 

 12 

 46 

 3 

 4 

 13 

 6 

 17 

 14 

 78 

 5 

 83 

 10 

1 515  1 549 

 4 

 1 

 0 

 332 

 344 

 13 

 424 

 470 

 2 

 3 

 5 

 7 

 0 

 0 

 0 

 558 

 570 

 27 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 8 

 14 

 3 

– 

 514 

 534 

 6 

 20 

 0 

 0 

 1 

 1 

 0 

 2 

 2 

 5 

 0 

 0 

 2 

 0 

 1 

 1 

– 

 0 

– 

 0 

 0 

 0 

– 

 0 

 0 

 0 

– 

– 

– 

– 

 0 

– 

 7 

 2 

 1 

 23 

 54 

 5 

 1 

 2 

 15 

 5 

 1 

 1 

 29 

 1 

 2 

 2 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

Policy area 

Total 
appropr. 
available 

Payments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over to 
2019 

automatic 
carry-
overs 

carry-
overs 
by 
decis. 

assigned 
revenue 

Total 

1 

2 

3 

4 

5=2+ 
3+4 

6=5/1 

7 

8 

9 

10=7+ 
8+9 

EUR million 

Appropriations lapsing 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

11 

12 

13 

Total 

14=11+ 
12+13 

17  Health and food safety 

 619 

 552 

 10 

18 

19 

Migration and home 
affairs 
Foreign policy 
instruments 

20  Trade 

2 466 

2 177 

 815 

 119 

 746 

 108 

 8 

 3 

 3 

 24 

 93 

 31 

 2 

 585  94 % 

 10 

2 278  92 % 

 780  96 % 

 113  95 % 

 8 

 4 

 4 

3 460 

3 133 

 20 

 163 

3 316  96 % 

 25 

3 850 

3 334 

 12 

 226 

3 572  93 % 

 12 

1 833 

1 523 

 11 

 66 

1 600  87 % 

 86 

 66 

 5 

 274 

 222 

 18 

 0 

 6 

 71  82 % 

 8 

 7 

 246  90 % 

 19 

22 

21 

International 
cooperation and 
development 
Neighbourhood and 
enlargement 
negotiations 
Humanitarian aid and 
civil protection 
24  Fight against fraud 

23 

25 

26 

Commission's policy 
coordination and legal 
advice 
Commission's 
administration 

27  Budget 

28  Audit 

29  Statistics 

30 

Pensions and related 
expenditure 

33  Justice and consumers 

34  Climate action 

40  Reserves 

Total 

31  Language services 

 495 

 372 

 23 

32  Energy 

1 908 

1 660 

1 532 

1 029 

 153 

 86 

1 269  83 % 

 135 

 1 

 117 

 253 

 94 

 21 

 54 

 18 

 178 

 139 

1 901 

1 881 

 16 

 1 

 5 

– 

 281 

 93 

 125 

 260 

 81 

– 

 5 

 4 

 4 

– 

 3 

 1 

 7 

 2 

 47 

 52 

 4 

 1 

– 

 73  78 % 

 14 

 20  92 % 

 152  85 % 

1 882  99 % 

 1 

 6 

– 

 442  89 % 

 18 

1 717  90 % 

 268  95 % 

 86  92 % 

– 

0 % 

 7 

 5 

 4 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 5 

 1 

 19 

 0 

 19 

 1 

 25 

 0 

 32 

 50 

 168 

 175 

 3 

 1 

– 

 8 

 5 

– 

161 390  139 260  1 394  11 879  152 533  95 % 

 706 

 465 

7 294  8 465 

 322 

 68 

73 

 23 

 33 

 162 

 170 

 1 

 17 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 31 

 34 

 2 

 5 

 113 

 138 

 263 

 275 

 213 

 221 

 0 

 6 

 7 

 25 

 1 

 1 

 0 

 0 

 3 

 2 

 4 

 1 

 1 

 9 

 1 

 0 

 1 

– 

 1 

 0 

 1 

 0 

– 

 1 

 1 

 3 

 2 

 9 

 7 

 2 

 2 

 0 

 0 

 0 

 19 

 2 

 15 

 5 

 3 

 125 

 0 

 0 

– 

– 

– 

– 

 0 

– 

– 

 0 

– 

– 

 0 

– 

– 

 0 

 0 

– 

– 

 2 

 2 

 18 

 1 

 1 

 6 

 4 

 12 

 8 

 3 

 11 

 1 

 0 

 1 

 19 

 3 

 16 

 6 

 3 

 125 

 392 

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

Annual accounts of the European Commission 2018 

Commitments outstanding at the end of previous year 

Commitments of the current year 

Policy area 

Commitm. 
carried 
forward from 
prev. year 

Decommitments/ 
Revaluations/ 
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 

EUR million 

Total 
commitm. 
outstanding 
at end of the 
year 

1 

2 

3 

4=1+2+3 

5 

6 

7 

8=5+6+7 

9=4+8 

01 

02 

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

03  Competition 

04 

05 

Employment, social affairs 
and inclusion 
Agriculture and rural 
development 

06  Mobility and transport 

07  Environment 

08  Research and innovation 

09 

Communications 
networks, content and 
technology 

10  Direct research 

11 

Maritime affairs and 
fisheries 
Financial stability, 
financial services and 
capital markets union 
13  Regional and urban policy 

12 

14 

Taxation and customs 
union 

15  Education and culture 

16  Communication 

17  Health and food safety 

3 262 

2 788 

 11 

42 622 

33 873 

8 870 

1 281 

13 677 

2 618 

 214 

3 244 

 (54) 

(2 302) 

 906 

2 686 

 (319) 

– 

2 367 

3 273 

 (43) 

(1 248) 

1 497 

2 522 

(1 106) 

 (0) 

1 416 

2 913 

 (1) 

 (10) 

– 

 113 

 (100) 

 (246) 

(14 291) 

28 084 

16 469 

 (361) 

 (123) 

(12 646) 

21 105 

59 345 

(44 521) 

 (340) 

(2 048) 

 (1) 

 (234) 

 (99) 

(4 835) 

6 483 

1 046 

8 743 

4 118 

 (319) 

 505 

 (130) 

7 505 

(1 931) 

– 

– 

 (0) 

 (1) 

– 

 (2) 

 13 

 13 

16 108 

44 192 

14 824 

3 798 

 375 

5 573 

35 928 

10 281 

1 421 

14 315 

 (51) 

(1 179) 

1 388 

2 337 

(1 079) 

– 

1 258 

2 646 

 (22) 

 (121) 

 71 

 524 

 (381) 

 (236) 

 (767) 

2 241 

1 222 

 (160) 

 (0) 

 (0) 

 143 

1 061 

 214 

3 302 

 14 

 (1) 

 (9) 

 3 

 98 

 (86) 

– 

 12 

 15 

114 695 

 (200) 

(39 075) 

75 420 

46 090 

 (592) 

 (0) 

45 498 

120 918 

 148 

2 564 

 65 

 474 

 (2) 

 (89) 

 58 

 181 

 (80) 

 (129) 

(1 054) 

1 382 

4 255 

(2 779) 

 (3) 

 (56) 

 (39) 

 (251) 

 6 

 185 

 219 

 622 

 (157) 

 (334) 

– 

 (0) 

 (0) 

– 

 100 

1 475 

 62 

 288 

 158 

2 857 

 68 

 473 

74 

 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
18 

Migration and home 
affairs 

19  Foreign policy instruments 

20  Trade 

21 

22 

23 

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

24  Fight against fraud 

25 

26 

Commission's policy 
coordination and legal 
advice 
Commission's 
administration 

27  Budget 

28  Audit 

29  Statistics 

30 

Pensions and related 
expenditure 

31  Language services 

32  Energy 

33  Justice and consumers 

34  Climate action 

40  Reserves 

Total 

Annual accounts of the European Commission 2018 

Commitments outstanding at the end of previous year 

Commitments of the current year 

Policy area 

Commitm. 
carried 
forward from 
prev. year 

Decommitments/ 
Revaluations/ 
Cancellations 

Payments 

Commitm. 
outstanding 
at year-end 

Commitm. 
made 
during the 
year 

Payments 

1 

2 

3 

4=1+2+3 

5 

6 

4 497 

1 027 

 24 

9 479 

 (61) 

(1 395) 

3 042 

2 985 

 (883) 

 (66) 

 (365) 

 (1) 

 (14) 

 597 

 8 

 885 

 114 

 (415) 

 (98) 

 (244) 

(2 690) 

6 544 

3 652 

 (625) 

13 822 

 (277) 

(2 855) 

10 690 

4 500 

 (717) 

EUR million 

Total 
commitm. 
outstanding 
at end of the 
year 

Commitm. 
outstanding 
at year-end 

8=5+6+7 

9=4+8 

2 102 

 469 

 16 

3 027 

5 144 

1 066 

 24 

9 571 

3 782 

14 472 

Cancellation of 
commitm. 
which cannot 
be carried-
over 
7 

– 

 (0) 

 (0) 

 (0) 

 (1) 

 (0) 

– 

– 

 983 

 27 

 20 

 206 

 17 

 1 

 125 

– 

 24 

5 525 

 252 

 301 

– 

 (37) 

 (460) 

 486 

1 630 

(1 140) 

 (4) 

 (14) 

 (1) 

 (19) 

 9 

– 

 81 

 (57) 

 249 

 (227) 

 490 

 24 

 21 

 (10) 

 (184) 

 12 

1 290 

(1 085) 

 (0) 

 204 

 (1) 

 (0) 

 (6) 

– 

 (16) 

 (1) 

 (65) 

– 

 (1) 

 (23) 

– 

– 

 55 

– 

– 

 72 

 20 

 154 

 (57) 

 (19) 

 (87) 

1 882 

(1 882) 

 444 

 (419) 

– 

– 

– 

– 

– 

 15 

 1 

 67 

– 

 25 

 977 

 33 

 21 

 217 

 15 

 1 

 122 

– 

 25 

 (181) 

(1 471) 

3 874 

1 676 

 (246) 

 (1) 

1 429 

5 302 

 (3) 

 (1) 

– 

 (119) 

 (59) 

– 

 130 

 241 

– 

 261 

 155 

– 

 (148) 

 (27) 

– 

– 

– 

– 

 113 

 128 

– 

 243 

 369 

– 

266 751 

(2 483)  (89 963) 

174 305 

168 859  (62 570) 

 (5) 

106 284 

280 589 

75 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.10.  POLICY AREA: COMMITMENTS OUTSTANDING BY YEAR OF ORIGIN 

Annual accounts of the European Commission 2018 

Policy area 

<2012 

2012 

2013 

2014 

2015 

2016 

2017 

2018 

Total 

EUR million 

01  Economic and financial affairs 

02 

Internal market, industry, entrepreneurship and 
SMEs 

03  Competition 

– 

 15 

– 

 0 

 7 

– 

 173 

 20 

– 

04  Employment, social affairs and inclusion 

 398 

 115 

1 328 

05  Agriculture and rural development 

06  Mobility and transport 

07  Environment 

08  Research and innovation 

09 

Communications networks, content and 
technology 

10  Direct research 

11  Maritime affairs and fisheries 

12 

Financial stability, financial services and capital 
markets union 

 34 

 13 

 142 

 128 

 40 

 8 

 9 

– 

– 

– 

 53 

 176 

 25 

– 

 3 

– 

 0 

 35 

– 

 478 

 204 

 524 

 76 

 0 

 164 

– 

3 178 

1 599 

 767 

 169 

 4 

 290 

– 

 729 

 966 

– 

2 367 

3 273 

1 416 

2 913 

 13 

 13 

8 200 

14 388 

16 108 

44 192 

7 482 

11 435 

14 824 

35 928 

2 390 

2 784 

3 798 

10 281 

 152 

 188 

 569 

1 421 

 351 

 6 

 73 

 574 

1 123 

1 632 

2 183 

2 928 

5 573 

14 315 

 81 

 9 

 96 

– 

 144 

 218 

 357 

 520 

1 261 

2 646 

 5 

 5 

 0 

 4 

 358 

– 

 9 

 36 

 143 

 214 

 763 

1 007 

1 061 

3 302 

 0 

 3 

 12 

 15 

13  Regional and urban policy 

 562 

 341 

3 097 

1 006 

7 234 

22 484 

40 697 

45 498 

120 918 

14  Taxation and customs union 

15  Education and culture 

16  Communication 

17  Health and food safety 

18  Migration and home affairs 

19  Foreign policy instruments 

20  Trade 

21  International cooperation and development 

22  Neighbourhood and enlargement negotiations 

23  Humanitarian aid and civil protection 

– 

 10 

 0 

 5 

 53 

 6 

– 

 269 

 625 

 9 

 0 

 20 

 0 

 1 

 70 

 20 

– 

 198 

 445 

 13 

– 

 52 

 0 

 4 

 63 

 13 

– 

 491 

 760 

 14 

76 

 100 

 158 

1 475 

2 857 

 1 

 4 

 120 

 182 

 0 

 13 

 36 

 76 

 0 

 0 

 24 

 88 

 106 

 1 

 14 

 323 

 1 

 51 

 828 

 149 

 2 

 39 

 675 

 5 

 87 

 62 

 288 

1 902 

2 102 

 221 

 5 

 474 

 16 

 68 

 473 

5 144 

1 066 

 24 

 618 

1 020 

1 553 

2 393 

3 028 

9 571 

1 030 

1 750 

2 760 

3 267 

3 834 

14 472 

 18 

 18 

 126 

 289 

 490 

 977 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

Policy area 

<2012 

2012 

2013 

2014 

2015 

2016 

2017 

2018 

Total 

EUR million 

24  Fight against fraud 

25 

Commission's policy coordination and legal 
advice 

26  Commission's administration 

27  Budget 

28  Audit 

29  Statistics 

30  Pensions and related expenditure 

31  Language services 

32  Energy 

33  Justice and consumers 

34  Climate action 

40  Reserves 

Total 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

– 

– 

 0 

– 

– 

 1 

– 

– 

 1 

– 

 0 

– 

– 

 4 

– 

– 

 2 

– 

 0 

– 

– 

 14 

– 

– 

 7 

 (0) 

 12 

 0 

 0 

 36 

– 

 0 

 24 

 21 

 33 

 21 

 204 

 217 

 15 

 1 

 67 

– 

 25 

 15 

 1 

 122 

– 

 25 

 324 

 47 

 701 

 363 

 402 

 884 

1 154 

1 429 

5 302 

 4 

– 

– 

 5 

– 

– 

 7 

– 

– 

 9 

 31 

– 

 18 

 41 

– 

 31 

 80 

– 

 57 

 89 

– 

 113 

 128 

– 

 243 

 369 

– 

2 656 

1 538 

7 910 

5 916 

18 979 

51 133 

85 917 

106 539 

280 589 

77 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2018 

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 

2018 
14 372 

(6 212) 

9 326 

(4 015) 

4 439 
3 568 
(6 086) 
(8 570) 
(2 255) 
1 471 

3 509 
(4 220) 

5 327 

EUR million 
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 

BUDGET RESULT OTHER INSTITUTIONS 

(3 525) 

(3 445) 

BUDGET RESULT OF THE YEAR (EU) 

1 802 

 555 

78