DRAFT AMENDING BUDGET No 4 TO THE GENERAL BUDGET 2019 Reduction of commitment and payment appropriations in line with updated needs of expenditure and update of revenue (own resources)
Date: 2019-07-02
Institutions: Directorate-General for Budget, European Commission
Subjects: EU expenditure, amending budget, draft budget (EU), financial year, general budget (EU), own resources

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 2.7.2019 COM(2019) 610 final  DRAFT AMENDING BUDGET No 4 TO THE GENERAL BUDGET 2019 Reduction of commitment and payment appropriations in line with updated needs of expenditure and update of revenue (own resources)  
 
 
Having regard to: 

– 

– 

– 

– 

– 

– 

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

Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council 
of 18 July 2018 on the financial rules applicable to the general budget of the Union 
(…)1, and in particular Article 44 thereof, 

the general budget of the European Union for the financial year 2019, as adopted on 
12 December 20182, 
draft amending budget No°1/20193, adopted on 15 April 2019, 
draft amending budget No°2/20194, adopted on 15 May 2019, 
draft amending budget No°3/20195, adopted on 22 May 2019, 

The  European  Commission  hereby  presents  to  the  European  Parliament  and  to  the  Council 
Draft Amending Budget No 4 to the 2019 budget. 

CHANGES  TO  THE  STATEMENT  OF  REVENUE  AND  EXPENDITURE  BY 
SECTION 

The changes to the general statement of revenue and to the individual sections (I, III, V and 
X) are available on EUR-Lex (http://eur-lex.europa.eu/budget/www/index-en.htm). 

1  
2. 
3  
4  
5  

OJ L 193, 30.7.2018, p. 1. 
OJ L 67, 7.3.2019. 
COM(2019) 300, 15.4.2019. 
COM(2019) 320, 15.5.2019. 
COM(2019) 205, 22.5.2019. 

2 

 
 
 
 
 
                                                 
TABLE OF CONTENTS 

1. 

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

2.  UPDATE OF EXPENDITURE .................................................................................................................................. 4 

DECREASES OF COMMITMENT AND PAYMENT APPROPRIATIONS ...................................................................... 4 
2.1. 
FINANCIAL SUPERVISION AUTHORITIES (EBA, EIOPA AND ESMA) ......................................................................... 4 
2.1.1 
EUROPEAN BORDER AND COAST GUARD AGENCY (FRONTEX) ................................................................................. 5 
2.1.2 
2.1.3 
RECAST DUBLIN III REGULATION ........................................................................................................................... 5 
2.1.4.  EUROPEAN PUBLIC PROSECUTOR’S OFFICE (EPPO) ............................................................................................. 6 
2.1.5.  EUROPEAN SOCIAL FUND – OPERATIONAL TECHNICAL ASSISTANCE ........................................................................ 6 
2.1.6.  EMERGENCY SUPPORT INSTRUMENT (ESI) .............................................................................................................. 6 
2.1.7.  UNION CIVIL PROTECTION MECHANISM (UCPM)................................................................................................... 7 
2.1.8.  EUROPEAN UNION SOLIDARITY FUND (EUSF) ....................................................................................................... 7 
2.1.9.  ADJUSTMENT OF THE MOBILISATION OF THE SPECIAL INSTRUMENTS ........................................................................ 8 
POSTPONEMENT OF THE UK WITHDRAWAL FROM THE EUROPEAN UNION: IMPACT ON EU INSTITUTIONS ... 8 
2.2. 
EUROPEAN PARLIAMENT (EP) ................................................................................................................................ 9 
2.2.1 
EUROPEAN COURT OF AUDITORS (ECA) ................................................................................................................ 9 
2.2.1 
EUROPEAN EXTERNAL ACTION SERVICE (EEAS) ..................................................................................................... 9 
2.2.3 
 OVERVIEW .......................................................................................................................................................... 10 
2.2.4 

3.  UPDATE OF REVENUE.......................................................................................................................................... 10 

3.1  OVERALL IMPACT OF DAB 4/2019 ON THE DISTRIBUTION OF TOTAL OWN RESOURCES PAYMENTS BETWEEN 
MEMBER STATES ............................................................................................................................................................. 10 
3.2  REVISION OF THE FORECAST OF TOR, VAT AND GNI BASES ............................................................................. 12 
3.3  2018 AND 2015 UK CORRECTION .......................................................................................................................... 13 
INTRODUCTION .................................................................................................................................................... 13 
3.3.1 
CALCULATION OF THE CORRECTIONS .................................................................................................................... 14 
3.3.2 
3.3.3 
ENTRY IN DAB 4/2019 OF THE 1ST UPDATE OF THE 2018 UK CORRECTION AND DEFINITIVE AMOUNT OF THE 2015 
UK CORRECTION ................................................................................................................................................................ 15 

4. 

SUMMARY TABLE BY MFF HEADING ............................................................................................................. 17 

3 

 
 
 
 
EXPLANATORY MEMORANDUM 

1. 

INTRODUCTION 

The  purpose  of  Draft  Amending  Budget  (DAB)  No 4  for  the  year  2019  is  to  update  both  the 
expenditure and the revenue sides of the budget to take account of the latest developments: 

– 

on the expenditure side: 

– 

– 

to  release  commitment  and  payment  appropriations  of  budget  lines  for  headings  1a 
Competitiveness for growth and jobs, 1b Economic, Social and Territorial Cohesion, 
3 Security and Citizenship, 4 Global Europe as well as the European Union solidarity 
fund; 

to adjust the budget 2019 of some institutions as a result of the postponement of the 
withdrawal of the United Kingdom from the European Union to 31 October 2019. 

– 

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

2. 

UPDATE OF EXPENDITURE 

2.1. 

Decreases of commitment and payment appropriations 

Financial supervision authorities (EBA, EIOPA and ESMA) 

2.1.1 
In  September  20176,  the  Commission  proposed  a  major  revision  of  the  mandates  of  the  European 
Banking  Authority  (EBA),  the  European  Insurance  and  Occupational  Pensions  Authority  (EIOPA) 
and  the  European  Securities  and  Markets  Authority  (ESMA),  requiring  a  substantial  increase  in 
human and financial resources, in particular for ESMA. A key element of the proposal was a shift to a 
new funding model, whereby the current funding key between the EU budget contribution (40 %) and 
the contribution from the national supervisory authorities (60 %), would be replaced by a combination 
of fee-financing and a balancing contribution from the EU budget. In parallel7, the Commission also 
proposed a new mandate for ESMA in relation to the supervision of Central Counterparties (CCPs), 
requiring  an  increase  in  human  resources  as  well  as  a  pre-financing  of  these  fee-financed  activities, 
taking into account the time needed to put in place the fee system. 

Political  agreement  on  these  proposals  was  reached  in  March  2019.  As  regards  the  revision  of  the 
mandates of EBA, EIOPA and ESMA, the compromise essentially entailed a more limited extension 
of the scope of the mandates, with a corresponding impact on the resources needs, whereas the current 
funding  model  (40  /  60  share  between  the  EU  budget  and  the  national  authorities)  was  retained. 
ESMA’s  mandate  in  relation  to  the  CCPs  will  be  slightly  reduced  as  compared  to  the  Commission 
proposal. For both proposals, the budgetary impact will occur with a delay of one year. The Statement 
of  Estimates  for  year  20208  already  reflects  the  budgetary  consequences  for  2020.  It  is  proposed  to 
update in this DAB the 2019 budget both for the human and financial resources.  

The  proposed  reduction  in  the  EU  contribution  to  EBA,  EIOPA  and  ESMA  is  shown  in  the  table 
below. 

6  
7  
8  

COM(2017) 536, 20.9.2017. 
COM(2017) 331, 13.6.2017. 
SEC(2019) 250, 5.6.2019. 

4 

 
 
 
 
 
 
                                                 
Budget line 

Name 

Section III – Commission 
12 02 04 
12 02 05 
12 02 06 
Total 

European Banking Authority (EBA) 

European Insurance and Occupational Pensions Authority (EIOPA) 

European Securities and Markets Authority (ESMA) 

Commitment 
appropriations 

Payment 
appropriations 

EUR 

-2 490 000 
-2 360 000 
-13 670 000 
-18 520 000 

-2 490 000 
-2 360 000 
-13 670 000 
-18 520 000 

The updated establishment plans of EBA (-10 posts), EIOPA (-9 posts) and ESMA (-27 posts) are set 
out in the budgetary annex. 

European Border and Coast Guard Agency (Frontex) 

2.1.2 
In  September  20189,  the  Commission  proposed  to  extend  the  mandate  of  the  European  Border  and 
Coast Guard Agency (Frontex) to create a standing corps of 10 000 border guards by 2020. Awaiting 
the adoption of the legislative proposal, an amount of EUR 19,3 million was put in reserve in the 2019 
budget to cover the costs of the planned recruitment of the first wave of border guards (375 posts and 
375 contract agents) in the final quarter of 2019.  

Political agreement was reached in March 2019 on the gradual creation of a standing corps of 10 000 
border  guards  by  2027.  Taking  into  account  the  expected  entry  into  force  of  the  Regulation  around 
1 November 2019,  as  the  formal  starting  point  for  the  actual  recruitment  of  the  standing  corps  of 
border  guards,  the  Commission  considers  it  prudent  to  keep  an  amount  of  EUR 7,2 million  in  the 
reserve  to  cover  the  salary  expenditure  for  the  first  recruitments  of  the  border  guards  in  2019. 
Consequently, the remaining amount in the reserve can be cancelled in this DAB. .  

Budget line 

Name 

Section III – Commission 
40 02 41 

Differentiated  appropriations  (Reserve  for  budget  article  18  02  03  – 
European Border and Coast Guard Agency (FRONTEX) 

Total 

2.1.3 

Recast Dublin III Regulation 

Commitment 
appropriations 

Payment 
appropriations 

EUR 

-12 121 000 

-12 121 000 

-12 121 000 

-12 121 000 

The voted budget 2019 contained EUR 460 million in commitment appropriations as a reserve related 
to  the  Commission  proposal  to  recast  the  Dublin  III  Regulation,  pending  the  adoption  of  the  legal 
basis.  In  case  the  legal  act  is  not  adopted  by  1 February 2019,  the  Commission  may  present  one  or 
more proposals for transfers in accordance with Article 31 of the Financial Regulation.  

The first tranche of EUR 370 million was released in April 2019. In parallel with this draft amending 
budget,  the  Commission  presents  a  second  and  final  transfer  request  (DEC  15/2019)  covering  an 
amount  of  EUR 82,8 million,  of  which  EUR 62,8 million  to  address  additional  funding  needs  for 
Greece in 2019 and EUR 20 million to prepare the next resettlement pledging exercise. Based on the 
Commission’s  assessment  of  the  related  year-end  needs  in  this  area,  the  remaining  amount  in  the 
reserve can be cancelled in  this DAB. Nonetheless,  the Commission  will keep the developments  on 
the ground under close review, and it may propose further correcting measures as necessary.  

9  

COM(2018) 631, 12.9.2018. 

5 

 
 
 
 
 
 
 
 
                                                 
Budget line 

Name 

Section III – Commission 
40 02 41 

Differentiated  appropriations  (Reserve  for  budget  article  18  03  01  01  – 
Strengthening  and  developing  the  common  European  asylum  system  and 
enhancing solidarity and responsibility-sharing between the Member States 

Total 

2.1.4.  European Public Prosecutor’s Office (EPPO) 

Commitment 
appropriations 

Payment 
appropriations 

EUR 

-7 200 000 

-7 200 000 

-7 200 000 

-7 200 000 

In October 2017, agreement was reached on the creation of the European Public Prosecutor’s Office 
(EPPO)10.  While  the  administrative  set-up  of  the  Office  is  well  on  its  way,  the  appointment  of  the 
Chief  Prosecutor  of  the  EPPO  has  taken  more  time,  and  is  currently  expected  to  take  place  in  the 
second  half  of  2019.  This  has  a  knock-on  effect  on  certain  other  recruitments  and  some  of  the 
expenditure  originally  planned  for  2019  will  occur  in  2020.  As  a  consequence,  the  appropriation 
included in the 2019 budget can be reduced by EUR 1 million in 2019. The Statement of Estimates for 
year 2020 already reflects the budgetary consequences for 202011. 

Budget line 

Name 

Section III – Commission 
33 03 05 
Total 

European Public Prosecutor’s Office (EPPO) 

Commitment 
appropriations 

Payment 
appropriations 

EUR 

-1 000 000 
-1 000 000 

-1 000 000 
-1 000 000 

2.1.5.  European Social Fund – Operational technical Assistance 

Taking into account the latest assessment of actual needs in terms of commitment appropriations on 
budget  item  04 02 63 01,  EUR 8,3 million  can  be  cancelled  without  jeopardising  the  smooth 
implementation of technical assistance activities under the European Social Fund. 

Budget line 

Name 

Section III – Commission 
04 02 63 01 
Total 

European Social Fund – Operational technical assistance 

2.1.6.  Emergency Support Instrument (ESI) 

Commitment 
appropriations 

Payment 
appropriations 

EUR 

-8 300 000 
-8 300 000 

- 
- 

The Emergency Support Instrument provides needs-based emergency support aimed at preserving life, 
preventing  and  alleviating  human  suffering,  and  maintaining  human  dignity,  complementing  the 
response of the affected Member States. The first intervention under the ESI started in 2016 and it is 
currently being phased out. 

The  current  allocation  for  the  support  expenditure  of  ESI  is  EUR 250 000.  In  line  with  the  revised 
forecast of required appropriations, EUR 120 000 may be cancelled. 

10  

11  

Council  Regulation  (EU)  2017/1939  of  12  October  2017  implementing  enhanced  cooperation  on  the 
establishment of the European Public Prosecutor’s Office (‘the EPPO’), OJ L 283, 31.10.2017. 
SEC(2019) 250, 5.6.2019. 

6 

 
 
 
 
 
 
 
 
 
                                                 
Budget line 

Name 

Section III – Commission 
18 01 04 05 
Total 

Support expenditure for emergency support within the Union 

2.1.7.  Union Civil Protection Mechanism (UCPM) 

Commitment 
appropriations 

Payment 
appropriations 

EUR 

-120 000 
-120 000 

-120 000 
-120 000 

The Union Civil Protection Mechanism aims at strengthening cooperation between participating states 
in  the  field  of  civil  protection,  with  a  view  to  improving  prevention,  preparedness  and  response  to 
disasters. 

Decision 2019/420 of the European Parliament and of the Council of 13 March 201912 has increased 
the  2014-2020  financial  envelope  for  the  Union  Civil  Protection  Mechanism  to  EUR 574 million. 
Following the political agreement between the Council and the European Parliament and taking into 
account  the  later  than  foreseen  adoption  of  the  aforementioned  amending  decision,  the  2019 
allocations for the Union Civil Protection Mechanism should be reduced accordingly. The amounts in 
reserve exceeding the agreed allocations for 2019 may be cancelled. 

Budget line 

Name 

Section III – Commission 
40 02 41 

Differentiated  appropriations  (Reserve  for  budget  item  23  03  01  01  – 
Disaster prevention and preparedness within the Union 
Differentiated appropriations (Reserve for budget item 23 03 02 01 – Rapid 
and  efficient  emergency  response  interventions  in  the  event  of  major 
disasters within the Union 
Differentiated appropriations (Reserve for budget item 23 03 02 02 – Rapid 
and  efficient  emergency  response  interventions  in  the  event  of  major 
disasters in third countries 

40 02 41 

40 02 41 

Total 

Commitment 
appropriations 

Payment 
appropriations 

EUR 

-35 000 000 

-26 390 000 

- 

- 

-170 514 

-2 000 000 

-35 000 000 

-28 560 514 

2.1.8.  European Union Solidarity Fund (EUSF) 

According  to  Article  4a  (4)  of  Council  Regulation  (EC)  No  2012/2002  of  11  November  2002 
establishing the European Union Solidarity Fund (EUSF), the total amount for advance payments for 
each year is limited to EUR 50 million both in commitment and payment appropriations. 

According  to  Article  12.4(a)  of  the  Financial  Regulation,  a  new  provision  in  force  since  1  August 
2018, there is an automatic carry-over of unused commitment appropriations for the EUSF. At the end 
of  2018,  EUR 29,7 million  of  commitment  appropriations  for  the  EUSF  were  available  and 
automatically carried over to 2019. EUR 50 million was mobilised together with the budget 201913. 

As a result, there are currently EUR 79,7 million of commitment appropriations and EUR 50 million 
of  payment  appropriations  available  in  2019  for  the  advance  payments  of  the  EUSF.  It  is  therefore 
proposed to reduce the commitment appropriations included in the budget 2019 by EUR 29,7 million 
in order to bring down the level of commitment appropriations to the EUR 50 million foreseen in the 
basic act and to the level of payment appropriations.  

12  

13  

Decision (EU) 2019/420 of the European Parliament and of the Council of 13 March 2019 amending Decision No 
1313/2013/EU on a Union Civil Protection Mechanism (OJ L77, 20.3.2019, p. 1). The financial envelope is set 
under Article 1(11).  
COM(2019) 252, 5.6.2019. 

7 

 
 
 
 
 
 
 
                                                 
Budget line 

Name 

Section III – Commission 

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

13 06 01 

Total 

2.1.9.  Adjustment of the mobilisation of the special instruments 

Commitment 
appropriations 

Payment 
appropriations 

EUR 

-29 748 635 

-29 748 635 

- 

- 

Given the reductions in the level of commitment appropriations of headings 1a and 3 included in this 
DAB, it is proposed to adjust the mobilisation of the Flexibility Instrument as follows: 

– 

– 

For  heading  1a, 
EUR 18,5 million; 

For  heading  3, 
EUR 55,4 million. 

the  mobilisation  of 

the  Flexibility  Instrument 

is  decreased  by 

the  mobilisation  of 

the  Flexibility  Instrument 

is  decreased  by 

The proposed mobilisation decision of the  Flexibility  Instrument14 repealing  and replacing Decision 
(EU) 2019/276 of 12 December 201815 accompanies this DAB. 

Given the reductions in the level of commitment appropriations of heading 1b included in this DAB, 
the use of the Global Margin for Commitments is decreased by EUR 8,3 million. 

2.2. 

Postponement  of  the  UK  withdrawal  from  the  European  Union:  impact  on  EU 
institutions 

During the preparation of the 2019 budget, the Institutions were invited to reflect in their respective 
statements of estimates the impact of the UK withdrawal from the European Union, initially foreseen 
for 29 March 2019, in the areas where the changes were evident (e.g. reduction of one Commissioner, 
one Member of the Court of Auditors, adjustment of the number of judges at the Court of Justice, a 
closure of the Representation and Regional Offices in the UK, etc.). 

As a result, the European Parliament, the Council, the Commission, the Court of Justice, the European 
Court of Auditors and the European Economic and Social Committee reduced their budget request by 
a total amount of about EUR 11,7 million (of which EUR 10,2 million for the European Parliament). 
This reduction was estimated on the basis of the UK being a Member State for 3 months in 2019.  

The European External Action Service increased its budget request by EUR 12,3 million to reflect the 
additional expenditure related to the setting-up of a UK division at Headquarters and an EU delegation 
in London. 
Due  to  the  postponement  of  the  withdrawal  of  the  UK16,  the  Institutions  will  now  have  to  cover 
expenditure relating to the UK as an EU Member State for up to seven additional months.  

The Council, the Commission, the Court of Justice and the European Economic and Social Committee 
will  aim  at  covering  the  additional  needs  by  redeployment  of  existing  resources.  For  the  Court  of 
Justice in particular, this is possible due to the persistent delay in the nomination of a judge by one of 
the Member States, which has generated sufficient savings to cover the additional expenses to pay the 
UK Members until 31 October 2019.  

Conversely,  the  European  Parliament  and  the  European  Court  of  Auditors  are  requesting  additional 
appropriations for the reasons outlined below. 

14  
15  
16  

COM(2019) 600, 2.7.2019. 
OJ L54, 22.2.2019, p.3. 
Conclusions of the special meeting of the European Council (Art. 50) (10 April 2019) - EUCO XT 20015/19. 

8 

 
 
 
 
 
                                                 
2.2.1 

European Parliament (EP) 

Following  the  decision  of  the  European  Council  on  the  composition  of  Parliament  as  from  the  9th 
legislative  period17,  Parliament’s  section  of  the  budget  included  appropriations  for  678  Members  as 
from 30 March, and 705 Members as from 2 July 2019. Appropriations were reduced on a number of 
lines  related  to  Members,  assistants  and  institutional  representation;  no  budget  was  foreseen  for  an 
information campaign in the UK.  

The postponement until 31 October 2019 not only affects the composition of the European Parliament 
and  the  cost  for  parliamentary  assistance,  but  also  the  need  to  keep  the  UK  Liaison  Office,  and 
triggered the organisation of European elections in the United Kingdom, which required a full-fledged 
information campaign. 

The  abovementioned  elements,  which  constitute  unavoidable,  exceptional  and  unforeseen 
circumstances, require additional supplementary appropriations of EUR 15,1 million.  

2.2.1 

European Court of Auditors (ECA) 

The  decision  on  the  postponement  of  the  UK  withdrawal  by  up  to  seven  months  has  an  impact  on 
remuneration and other  expenditure for a College of 28,  as opposed to  27 Members at  the Court of 
Auditors. 

In view of the tight budget requested for 2019, the Court will not be in a position to find the additional 
resources by redeployment but requests an additional allocation of EUR 107 000 to cover salaries and 
other  allowances  as  well  as  mission  and  representation  expenses.  This  amount  is  net  of  the 
redeployment of the unused amount of transitional allowances, which will be transferred to the salary 
line for the UK Member. 

2.2.3 

European External Action Service (EEAS) 

The EEAS has been granted additional appropriations in its 2019 budget as a direct consequence of 
the UK withdrawal in order to:  

– 

– 

– 

– 

open and run a Delegation in London,  

maintain the EU's current point of presence in Northern Ireland,  

create a dedicated Division  in  Headquarters to  manage the relations with  the UK as a third 
country, and   

cover the  additional rotation costs arising from the need to  recall staff with UK nationality 
from the Delegation network before the scheduled expiry of their postings. 

These amounts were estimated on the assumption that the UK would leave the European Union on 29 
March  2019.  As  the  Article  50  period  has  been  extended,  the  EEAS  has  currently  accumulated 
surpluses in its 2019 budget. 

Given  the  current  considerable  uncertainty  related  to  the  Article  50  process,  the  EEAS  will  need  to 
maintain  the  amounts  for  one-off  Delegation  opening  costs  and  the  aforementioned  additional 
rotations  in  its  2019  budget.  It  will  also  require  a  sufficient  buffer,  should  both  parties  ratify  the 
withdrawal agreement before 31 October 2019. 

The EEAS will therefore reduce its 2019 budget by the running costs foreseen from the beginning of 
the  year  until  1  August  for  its  Headquarter’s  Division  and  its  presence  points  in  the  UK 
(EUR 3 276 000). 

17  

Decision (EU) 2018/937 of 28 June 2018. 

9 

 
 
 
 
                                                 
As the situation later in the year may be very different from the current scenario, the EEAS intends to 
revert to the Budget Authority later this  year and propose further adjustments to its 2019 budget, as 
appropriate in respect of the situation at that time. 

2.2.4 

 Overview 

Budget line 

Name 

  Section I – European Parliament 

  1 0 0 0 
  1 0 0 4 
  1 0 0 6 
  1 0 2 0 
  3 2 2 

  3 2 4 2 

  3 2 4 4 

Salaries 
Ordinary travel expenses 
General expenditure allowance 
Transitional allowances 
Documentation expenditure 
Expenditure on publication, information and participation in 
public events 
Organisation and reception of groups of visitors, Euroscola 
programme and invitations to opinion multipliers from third 
countries 
Expenditure relating to liaison Offices 
Expenditure relating to parliamentary assistance 

Remuneration, allowances and pensions 
Missions 
Representation expenses 

  3 2 5 
  4 2 2 
  Sub-total Section I  
  Section V – European Court of Auditors 
  1 0 0 0 
  1 0 4 
  2 5 2 
  Sub-total Section V 
  Section X – European External Action Service 
Basic salaries 
  1 1 0 0 
Entitlements under the Staff Regulations related to the personal 
circumstances of the staff member 
Social security cover 
Missions 
Remuneration and entitlements of statutory staff 
External staff and outside services 
Other expenditure related to staff 
Buildings and associated costs 
Other administrative expenditure 

  1 1 0 3 
  1 4 0 
  3 0 0 0 
  3 0 0 1 
  3 0 0 2 
  3 0 0 3 
  3 0 0 4 
  Sub-total Section X  
  Total 

  1 1 0 2 

Commitment 
appropriations 

Payment 
appropriations 

(in EUR) 

2 420 000 
2 100 000 
1 200 000 
-1 800 000 
80 000 

2 420 000 
2 100 000 
1 200 000 
-1 800 000 
80 000 

3 000 000 

3 000 000 

300 000 

300 000 

320 000 
7 490 000 
15 110 000 

320 000 
7 490 000 
15 110 000 

96 000 
6 000 
5 000 
107 000 

-564 000 

-143 000 

-22 000 
-27 000 
-747 000 
-568 000 
-97 000 
-1 070 000 
-38 000 
-3 276 000 
11 941 000 

96 000 
6 000 
5 000 
107 000 

-564 000 

-143 000 

-22 000 
-27 000 
-747 000 
-568 000 
-97 000 
-1 070 000 
-38 000 
-3 276 000 
11 941 000 

3. 

UPDATE OF REVENUE 

3.1 

Overall  impact  of  DAB  4/2019  on  the  distribution  of  total  own  resources  payments 
between Member States 

Following the 175th meeting of the Advisory Committee on Own Resources (ACOR) of 24 May 2019, 
two  adjustments  of  the  revenue  side  of  the  budget  are  required:  first  an  update  of  the  estimates  for 
Traditional Own Resources (TOR) as well as for the own resources based on the Value Added Tax 
(VAT)  and  Gross  National  Income  (GNI)  to  take  account  of  more  recent  economic  forecasts,  and 
second an update of the UK correction. These two adjustments are presented in sections 3.2 and 3.3 
below. 

The overall impact of both the expenditure and the revenue adjustments of this DAB is shown in the 
summary table below. This table also shows the distribution of total own resources payments between 
10 

 
 
 
 
 
Member States: as budgeted in the 2019 budget, as amended in Draft Amending budget No 3 (DAB 
3/2019)18, and finally in the present DAB. 

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

Budget 2019 

DAB 3/2019 

DAB 4/2019 

(1) 

(2) 

(3) 

6 151,1 

 565,3 

2 012,3 

2 811,0 

6 108,2 

 560,2 

1 993,3 

2 782,1 

6 096,5 

605,0 

2 028,3 

2 801,5 

30 494,7 

30 164,5 

29 792,7 

 253,3 

2 478,4 

1 746,1 

12 172,1 

22 592,6 

 496,6 

17 008,2 

 202,2 

 288,5 

 459,3 

 376,9 

1 285,1 

 116,7 

7 707,0 

3 437,6 

4 934,2 

1 914,7 

1 916,6 

 480,2 

 868,0 

2 186,3 

3 859,3 

 250,9 

2 453,9 

1 728,6 

12 056,6 

22 364,4 

 491,8 

16 840,7 

 200,3 

 285,7 

 455,2 

 373,1 

1 272,7 

 115,6 

7 633,3 

3 400,7 

4 888,0 

1 896,0 

1 897,1 

 475,8 

 859,3 

2 163,9 

3 815,1 

263,1 

2 485,6 

1 759,2 

12 161,9 

22 592,4 

494,6 

16 772,0 

206,7 

301,3 

481,5 

382,6 

1 349,3 

119,3 

7 668,9 

3 398,3 

5 072,7 

1 932,0 

1 948,8 

488,1 

873,2 

2 166,7 

3 883,5 

17 490,2 
146 304,5 

17 268,1 
144 795,1 

16 614,1 
144 739,5 

BE 

BG 

CZ 

DK 

DE 

EE 

IE 

EL 

ES 

FR 

HR 

IT 

CY 

LV 

LT 

LU 

HU 

MT 

NL 

AT 

PL 

PT 

RO 

SI 

SK 

FI 

SE 

UK 
EU 

18  

COM(2019) 205, 22.5.2019. 

11 

 
 
 
 
 
 
 
 
                                                 
3.2 

Revision of the forecast of TOR, VAT and GNI bases 

According to established practice, the Commission proposes to revise the financing of the budget on 
the basis of more recent economic forecasts19, agreed with the Member States at the ACOR meeting.  

The revision concerns the forecast of TOR to be paid to the budget in 2019 as well as the forecast of 
the 2019 VAT and GNI  bases. The forecast in the 2019 Budget  was established at the 172th ACOR 
meeting on 18 May 2018. The revision in the present DAB takes into account the agreed forecasts of 
the  175th  ACOR  meeting  held  on  24  May  2019.  The  use  of  an  updated  forecast  of  own  resources 
improves  the  accuracy  of  the  revenue  forecasts  and  hence  of  the  payments  that  Member  States  are 
asked to make to the EU budget during the budgetary year. 

As compared to the forecast agreed in May 2018, the forecast for 2019 has been revised as follows: 

–  Total 2019 net customs duties are now forecast at EUR 21 206,0 million (after deduction of 20 % 
the  forecast  of 
collection  costs),  which  represents  a  decrease  of  1,23 %  relative 
EUR 21 471,2 million included in the Budget 2019. The Commission compared the results of the 
traditional ACOR forecasting method (based on the Spring 2019 macroeconomic forecast) with the 
results  of  the  extrapolation  method  based  on  the  latest  outturn  data  for  collected  customs  duties 
(January – April 2019).  As in previous years, it was agreed to apply a conservative approach and 
to use the lowest TOR forecast in order to ensure sound budget management in a context of high 
economic uncertainties and potential disruptions in trade patterns. 

to 

–  The  total  2019  EU  uncapped  VAT  base  is  now  forecast  at  EUR 7 085 193,6 million,  which 
represents an increase of 2,30 % compared to the May 2018 forecast of EUR 6 925 637,5 million. 
The total 2019 EU capped VAT base20 is forecast at EUR 7 057 535,1 million, which represents an 
increase of 2,20 % compared to the May 2018 forecast of EUR 6 905 892,6 million. 

–  The  total  2019  EU  GNI  base  is  forecast  at  EUR 16 347 197,8  million,  which  is  a  decrease  (-

0,60 %) compared to the May 2018 forecast of EUR 16 446 111,0 million. 

The exchange rates of 31 December 2018 have been used for converting the forecast VAT and GNI 
bases  in  national  currency  into  euro  (for  the  nine  Member  States  that  are  not  members  of  the  euro 
area).  This  avoids  distortions  since  it  is  this  rate  that  is  used  to  convert  budgeted  own  resources 
payments  from  euro  into  national  currency  when  the  amounts  are  called  in  (as  stipulated  in 
Article 10a(1) of Council Regulation No 609/2014). 
The revised forecasts of TOR, uncapped VAT bases and GNI bases for 2019, as adopted at the 175th 
ACOR meeting on 24 May 2019 are set out in the following table: 

Revised forecasts of TOR, VAT and GNI bases for 2019 (in million EUR) 

Customs 
duties 
(80%) 

Uncapped 
VAT bases 

GNI bases 

Capped 
VAT bases21 

 2 173,3 
  104,7 
  293,2 
  357,7 
 4 133,0 
  34,9 

 200 164,5 
 27 671,8 
 90 821,9 
 119 452,0 
1 453 699,2 
 13 074,3 

 469 186,6 
 58 500,4 
 205 917,4 
 313 973,3 
3 551 074,7 
 26 649,8 

 200 164,5 
 27 671,8 
 90 821,9 
 119 452,0 
1 453 699,2 
 13 074,3 

BE 
BG 
CZ 
DK 
DE 
EE 

19   European  Commission,  Spring 2019  Economic  Forecasts,  https://ec.europa.eu/info/business-economy-euro/economic-

performance-and-forecasts/economic-forecasts/spring-2019-economic-forecast_en  

20   In accordance with Council Decision 2014/335, if the VAT base of a Member State exceeds 50 % of its GNI, then it is 
capped at this 50 %. For DAB 4/2019, five Member States will have their VAT base capped at 50 % of GNI: Croatia, 
Cyprus, Luxembourg, Malta and Portugal. 

21  The amounts highlighted in grey result from the capped VAT bases, as explained in the previous footnote.  

12 

 
 
 
 
 
 
                                                 
Customs 
duties 
(80%) 

Uncapped 
VAT bases 

GNI bases 

Capped 
VAT bases21 

  308,7 
  185,6 
 1 573,9 
 1 746,2 
  39,0 
 1 901,2 
  25,3 
  44,8 
  99,5 
  17,6 
  210,4 
  13,8 
 2 607,3 
  217,5 
  781,4 
  188,2 
  194,6 
  81,0 
  100,5 
  150,6 
  520,7 
 3 101,4 

 91 474,4 
 75 007,5 
 572 646,4 
1 112 113,9 
 33 740,9 
 718 519,6 
 14 284,0 
 12 079,5 
 19 008,6 
 30 710,0 
 57 991,8 
 8 893,3 
 331 589,2 
 180 376,1 
 248 536,4 
 105 998,5 
 76 044,3 
 22 413,4 
 34 473,4 
 102 046,6 
 211 575,9 
1 120 786,2 

 265 877,4 
 190 421,6 
1 252 795,0 
2 472 604,4 
 52 961,9 
1 793 427,3 
 21 070,6 
 31 194,7 
 45 938,8 
 42 445,3 
 135 913,0 
 12 257,9 
 806 725,1 
 399 095,3 
 502 207,3 
 203 200,7 
 215 341,6 
 47 995,2 
 94 317,1 
 240 879,6 
 491 990,2 
2 403 235,6 

 91 474,4 
 75 007,5 
 572 646,4 
1 112 113,9 
 26 481,0 
 718 519,6 
 10 535,3 
 12 079,5 
 19 008,6 
 21 222,7 
 57 991,8 
 6 129,0 
 331 589,2 
 180 376,1 
 248 536,4 
 101 600,4 
 76 044,3 
 22 413,4 
 34 473,4 
 102 046,6 
 211 575,9 
1 120 786,2 

 21 206,0 

7 085 193,6 

16 347 197,8 

7 057 535,1 

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

3.3 

2018 and 2015 UK correction 

3.3.1 

Introduction 

The  correction  of  budgetary  imbalances  in  favour  of  the  United  Kingdom  (UK correction),  to  be 
budgeted in the present DAB, concerns two years: 2015 and 2018. 

The 2015 and 2018 UK correction is subject to the rules of Council Decision 2014/335/EU, Euratom 
on the system of own resources of the European Union22 and its accompanying working document, the 
2014 Calculation Method23. Pursuant to the rules of this Decision, the net TOR “windfall gains” of the 
UK resulting from the increase since 2001 in the percentage of TOR retained by Member States as a 
compensation for their collection costs are neutralised and the allocated expenditure is adjusted by the 
total allocated expenditure in Member States that have acceded to the EU after 30 April 2004, except 
for  agricultural  direct  payments  and  market-related  expenditure  as  well  as  the  part  of  the  rural 
development expenditure originating from the EAGGF, Guarantee section.  

Furthermore, the share of Austria, Germany, the Netherlands and Sweden in the financing of the UK 
correction  is  reduced  to  one  fourth  of  their  normal  share.  The  reduction  is  financed  by  the  other 
Member States, excluding the UK. 
In the present DAB, the calculation and financing of the 1st update of the 2018 UK correction and the 
definitive amount of the 2015 UK correction are entered. 

22  OJ L 168, 7.6.2014, p. 105-111. 
23  Commission  working  document  of  14  May  2014  “Calculation,  financing,  payment  and  entry  in  the  budget  of  the 
correction of budgetary imbalances in favour of the United Kingdom (‘the correction’) in accordance with Articles 4 
and 5 of Council Decision 2014/335/EC, Euratom on the system of own resources of the European Union”. 

13 

 
 
 
 
 
 
 
                                                 
The difference between the definitive amount of  the 2015 UK correction and the amount previously 
budgeted  (the  1st  update  entered  in  AB  5/2016)  is  entered  in  chapter  35  (Result  of  the  definitive 
calculation of the financing of the correction of budgetary imbalances for the United Kingdom) of the 
present DAB. 

The 1st update amount of the 2018 UK correction is entered in chapter 15 (Correction of budgetary 
imbalances) of the present DAB, replacing the previously budgeted provisional amount. 

3.3.2  Calculation of the corrections 

The update of the corrections for 2015 and 2018 stems mainly from the update of the VAT and GNI 
bases as communicated by Member States in autumn 2018. In addition the update of the correction for 
2018 also takes into account the allocated expenditure of 2018.  

3.3.2.1  2018 UK correction 

The  following  table  summarises  the  changes  between  the  provisional  amount  of  the  2018  UK 
correction entered in the Budget 2019 and the 1st update of the 2018 UK correction to be entered in 
the present DAB. 

2018 UK correction 

(2) 

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

(3) 
(4)  Total allocated expenditure 

(5) 

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

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

(6) 

(7) 

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

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

2018 UK 
correction 
PROVISIONAL 
Budget 2019 
(1) 
16,1945% 

2018 UK 
correction 
1st UPDATE 
DAB 4/2019 
(2) 
15,9617% 

7,3577% 

6,7300% 

Difference 

(2)-(1) 

-0,2329% 

-0,6277% 

8,8368% 
127 599 039 596 

9,2317% 
129 786 633 964 

+0,3948% 
+ 2 187 594 368 

27 076 886 462 

31 101 300 166 

+ 4 024 413 704 

0 
27 076 886 462 

0 
31 101 300 166 

0 
+ 4 024 413 704 

100 522 153 134 

98 685 333 798 

- 1 836 819 336 

5 862 761 188 

6 012 789 482 

+ 150 028 294 

854 326 562 
5 008 434 626 
- 15 094 049 
5 023 528 676 

616 616 471 
5 396 173 012 
- 35 957 064 
5 432 130 075 

- 237 710 091 
+ 387 738 385 
- 20 863 015 
+ 408 601 399 

The  1st  update  of  the  2018  UK  correction  is  around  EUR 409 million  higher  as  compared  to  the 
provisional amount of the 2018 UK correction entered in the Budget 2019. 

3.3.2.2  2015 UK correction 
The following table summarises the changes between the 1st update of the 2015 UK correction entered 
in the Amending Budget 5/2016 and the definitive amount of the 2015 UK correction to be entered in 
the present DAB. 

2015 UK correction 

(2) 

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

(3) 
(4)  Total allocated expenditure 
(5)  Enlargement-related expenditure 

2015 UK 
correction 
1st UPDATE  
AB 5/2016 
(1) 
19,2145% 

2015 UK 
correction 
DEFINITIVE 
DAB 4/2019 
(2) 
19,1419% 

7,5910% 

7,5894% 

11,6235% 
129 194 773 448 
31 733 179 803 

11,5525% 
129 135 893 336 
31 639 878 296 

14 

Difference 

(2)-(1) 

- 0,0726% 

- 0,0016% 

- 0,0710% 
- 58 880 112 
- 93 301 507 

 
 
 
 
 
 
 
 
 
2015 UK correction 

= (5a) + (5b) 

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

(6) 

(7) 

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

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

2015 UK 
correction 
1st UPDATE  
AB 5/2016 

2015 UK 
correction 
DEFINITIVE 
DAB 4/2019 

Difference 

0 
31 733 179 803 

0 
31 639 878 296 

0 
- 93 301 507 

97 461 593 645 

97 496 015 040 

+ 34 421 395 

7 476 753 663 

7 433 724 758 

- 43 028 905 

1 496 521 393 
5 980 232 270 
-76 109 576 
6 056 341 847 

1 381 345 015 
6 052 379 743 
-74 320 246 
6 126 699 989 

- 115 176 378 
+ 72 147 473 
+ 1 789 330 
+70 358 142 

The definitive amount of the 2015 UK correction is around EUR 70 million higher than the 1st update 
of the 2015 UK correction entered in the AB 5/2016 mainly due to the updates of the VAT and GNI 
bases as communicated by Member States in autumn 2018. 

3.3.3 

Entry in DAB 4/2019 of the 1st update of the 2018 UK correction and definitive amount of 
the 2015 UK correction  

3.3.3.1  2015 UK correction (chapter 35) 

The amount of the UK correction to be budgeted in chapter 35 of the present DAB is the difference 
between the definitive amount of the 2015 UK correction (i.e. EUR 6 126 699 989) and the 1st update 
of  the  2015  UK  correction  (i.e.  EUR 6 056 341 847  entered  in  the  AB  5/2016)  amounting  to 
EUR 70 358 142. 

This  amount is  to  be financed  along the  revised  2015 GNI bases  as known at the end of 2018.  The 
budgeting of this amount in chapter 35 is summarised below: 

2015 UK correction — Chapter 35 

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

LU 
1 267 154 
HU 
3 148 896 
4 903 895  MT 
NL 
6 556 672 
AT 
4 385 985 
PL 
303 635 
PT 
20 284 145 
RO 
504 408 
SI 
1 272 857 
SK 
5 838 257 
FI 
1 207 446 
SE 
19 287 491 
627 536 
UK 
-619 579 
-208 473  Total 

866 089 
2 764 651 
310 080 
-260 138 
1 362 429 
-9 542 201 
476 355 
1 609 226 
123 083 
1 555 233 
4 733 265 
-2 400 255 

- 70 358 142 
0 

3.3.3.2  2018 UK correction (chapter 15) 
The 1st update of the 2018 UK correction corresponds to EUR 5 432 130 075 and is EUR 408 601 399 
higher than the amount entered in the Budget 2019 (EUR 5 023 528 676). 

This amount is to be financed along the revised 2019 GNI bases of the present DAB. The budgeting of 
this amount in chapter 15 is summarised below: 

15 

 
 
 
 
 
 
 
 
 
 
2018 UK correction – chapter 15 

265 533 515 
LU 
 33 107 972  HU 
116 537 793  MT 
177 691 422 
NL 
345 846 816 
AT 
15 082 304 
PL 
150 471 818 
PT 
107 768 033 
RO 
709 012 279 
SI 
1 399 356 542 
SK 
29 973 489 
FI 
1 014 980 086 
SE 
11 924 787 
17 654 465 
25 998 805  Total  

UK 

24 021 679 
76 919 197 
6 937 290 
78 568 695 
38 868 751 
284 221 395 
115 000 292 
121 871 366 
27 162 613 
53 378 232 
136 324 454 
47 915 985 

- 5 432 130 075 

0 

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

16 

 
 
 
 
 
4. 

SUMMARY TABLE BY MFF HEADING 

Heading 

Budget 2019 

(incl. DAB 1-3/2019) 

Draft Amending Budget 4/2019 

In EUR 

Budget 2019 

(incl. DAB 1-4/2019) 

1. 

Smart and inclusive growth 

80 627 449 848 

67 556 947 173 

- 26 820 000 

- 18 520 000 

80 600 629 848 

67 538 427 173 

CA 

PA 

CA 

PA 

CA 

PA 

Of which under Flexibility Instrument 

Of which under global margin for commitments 

Ceiling  

Margin 

 178 715 475 

 524 734 373 

79 924 000 000 

- 18 520 000 

- 8 300 000 

 160 195 475 

 516 434 373 

79 924 000 000 

1a 

Competitiveness for growth and jobs 

23 435 449 848 

20 521 537 455 

- 18 520 000 

- 18 520 000 

23 416 929 848 

20 503 017 455 

Of which under Flexibility Instrument 

Of which under global margin for commitments 

Ceiling 

Margin 

 178 715 475 

 174 734 373 

23 082 000 000 

1b   Economic  social and territorial cohesion 

57 192 000 000 

47 035 409 718 

Of which under global margin for commitments 

 350 000 000 

- 18 520 000 

- 8 300 000 

- 8 300 000 

Ceiling 

Margin 

56 842 000 000 

 160 195 475 

 174 734 373 

23 082 000 000 

57 183 700 000 

47 035 409 718 

 341 700 000 

56 842 000 000 

2. 

Sustainable growth: natural resources 

59 642 077 986 

57 399 857 331 

59 642 077 986 

57 399 857 331 

60 344 000 000 

 701 922 014 

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

Ceiling 

60 344 000 000 

 701 922 014 

43 191 947 000 

43 116 399 417 

43 191 947 000 

43 116 399 417 

Sub-ceiling 
Rounding difference excluded from margin 
calculation 
EAGF Margin 

43 881 000 000 

  659 000 

 688 394 000 

43 881 000 000 

  659 000 

 688 394 000 

3. 

Security and citizenship 

3 786 629 138 

3 527 434 894 

- 55 441 000 

- 47 001 514 

3 731 188 138 

3 480 433 380 

Of which under Flexibility Instrument 

 985 629 138 

- 55 441 000 

Ceiling 

Margin 

2 801 000 000 

 930 188 138 

2 801 000 000 

4.  Global Europe 

11 319 265 627 

9 358 295 603 

- 2 000 000 

11 319 265 627 

9 356 295 603 

Of which under global margin for commitments 

1 051 265 627 

Ceiling 

Margin 

10 268 000 000 

1 051 265 627 

10 268 000 000 

5. 

Administration 

9 942 974 723 

9 944 904 743 

 11 941 000 

 11 941 000 

9 954 915 723 

9 956 845 743 

Ceiling 

10 786 000 000 

Of which offset against Contingency margin 

- 253 882 156 

Margin 

 589 143 121 

10 786 000 000 

- 253 882 156 

 577 202 121 

Of which: Administrative expenditure of the 
institutions 

7 747 285 803 

7 749 215 823 

7 747 285 803 

7 749 215 823 

Of which offset against Contingency margin 

- 253 882 156 

Sub-ceiling 

8 700 000 000 

Margin 

 698 832 041 

8 700 000 000 

- 253 882 156 

 698 832 041 

Of which under Flexibility Instrument 

1 164 344 613 

 961 862 659 

- 73 961 000 

- 37 271 858 

1 090 383 613 

 924 590 801 

Total 

165 318 397 322 

147 787 439 744 

- 70 320 000 

- 55 580 514 

165 248 077 322 

147 731 859 230 

Of which under global margin for commitments 

1 576 000 000 

- 8 300 000 

1 567 700 000 

Ceiling 

164 123 000 000 

166 709 000 000 

164 123 000 000 

166 709 000 000 

Of which offset against Contingency margin 

- 253 882 156 

Margin 

1 291 065 135 

19 883 422 915 

Other special Instruments 

 870 799 794 

 705 051 794 

- 29 748 635 

- 253 882 156 

1 279 124 135 

19 901 731 571 

 841 051 159 

 705 051 794 

Grand Total 

166 189 197 116 

148 492 491 538 

- 100 068 635 

- 55 580 514 

166 089 128 481 

148 436 911 024 

17