DRAFT AMENDING BUDGET No 5 TO THE GENERAL BUDGET 2019 Adjustments of administrative appropriations of EU institutions in line with the latest information available and update of revenue (own resources)
Date: 2019-11-08
Institutions: Directorate-General for Budget, European Commission
Subjects: EU institution, United Kingdom, administrative expenditure (EU), amending budget, budgetary resources, draft budget (EU), financial year, general budget (EU), own resources, withdrawal from the EU

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 8.11.2019 COM(2019) 594 final  DRAFT AMENDING BUDGET No 5 TO THE GENERAL BUDGET 2019 Adjustments of administrative appropriations of EU institutions in line with the latest information available 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, 
Amending budget No°1/20193, adopted on 18 September 2019, 
Amending budget No°2/20194, adopted on 18 September 2019, 
Amending budget No°3/20195, adopted on 18 September 2019, 
Draft amending budget No 4/2019, adopted on 2 July 20196, 

The  European  Commission  hereby  presents  to  the  European  Parliament  and  to  the  Council 
Draft Amending Budget No 5 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, II, III, IV, 
V,  VI,  VIII, 
(https://eur-
lex.europa.eu/budget/www/index-en.htm). 

and  X) 

EUR-Lex 

available 

are 

IX 

on 

1  
2. 
3  
4  
5  
6  

OJ L 193, 30.7.2018. 
OJ L 67, 7.3.2019. 
OJ L 284, 5.11.2019. 
OJ L 284, 5.11.2019. 
OJ L 288, 7.11.2019. 
COM(2019) 610, 2.7.2019. 

2 

 
 
 
 
 
                                                 
TABLE OF CONTENTS 

1. 

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

2.  ADJUSTMENT OF ADMINISTRATIVE EXPENDITURE OF THE EU INSTITUTIONS .............................. 4 

REMUNERATIONS AND PENSIONS ....................................................................................................................... 4 
2.1. 
2.1.1 
ANNUAL SALARY UPDATE ........................................................................................................................................ 4 
2.1.2  OVERVIEW ............................................................................................................................................................. 5 
POSTPONEMENT OF THE UK WITHDRAWAL FROM THE EUROPEAN UNION: IMPACT ON EU INSTITUTIONS ... 7 
2.2. 
EUROPEAN PARLIAMENT (EP) ................................................................................................................................ 7 
2.2.1 
EUROPEAN DATA PROTECTION SUPERVISOR (EDPS) .............................................................................................. 8 
2.2.2 
2.2.3 
EUROPEAN EXTERNAL ACTION SERVICE (EEAS) ..................................................................................................... 8 
2.2.4  OVERVIEW ............................................................................................................................................................. 9 

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

3.1  OVERALL IMPACT OF DAB 5/2019 ON THE DISTRIBUTION OF TOTAL OWN RESOURCES PAYMENTS BETWEEN 
MEMBER STATES ............................................................................................................................................................... 9 
3.2  REVISION OF THE FORECAST OF TOR, VAT AND GNI BASES ............................................................................. 11 
3.3  2018 AND 2015 UK CORRECTION .......................................................................................................................... 12 
INTRODUCTION .................................................................................................................................................... 12 
3.3.1 
CALCULATION OF THE CORRECTIONS .................................................................................................................... 13 
3.3.2 
3.3.3 
ENTRY IN DAB 5/2019 OF THE 1ST UPDATE OF THE 2018 UK CORRECTION AND DEFINITIVE AMOUNT OF THE 2015 
UK CORRECTION ................................................................................................................................................................ 14 

4. 

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

3 

 
 
 
 
EXPLANATORY MEMORANDUM 

INTRODUCTION 

1. 
On  2  July  2019  the  Commission  transmitted  the  Draft  Amending  Budget  (DAB)  No 47  for  the  year 
2019, which was intended to update both the expenditure and the revenue sides of the budget to take 
account of the latest developments. 

The Council and the European Parliament completed their reading of DAB No 4/2019 respectively on 
3 September 20198 and on 10 October 20199. As the European Parliament adopted amendments which 
could  not  be  accepted  by  the  Council,  a  Conciliation  Committee  was  convened,  in  accordance  with 
Article 314 §4(c) of the Treaty on the Functioning of the European Union (TFEU). 

The  Conciliation  Committee  worked  over  a  period  of  twenty-one  days,  between  15  October  and 
4 November  2019.  However,  it  was  not  possible  during  this  period  to  reconcile  the  positions of  the 
European Parliament and Council. 

The  non  contested  elements  of  DAB 4/2019  are  included  in  the  present  Draft  Amending  Budget 
No 5/2019 which takes account, at the same time, of the latest information available. 

Therefore, the objective of DAB No 5/2019 is, 

– 

– 

on the expenditure side, to adjust the administrative expenditure of EU institutions to reflect 
the impact of: 

– 

– 

the salary update that will apply as from 1 July 2019, which is lower than foreseen, 
and; 

the latest postponement of the UK withdrawal from the European Union decided on 
28 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. 

ADJUSTMENT OF ADMINISTRATIVE EXPENDITURE OF THE EU INSTITUTIONS 

2.1. 

Remunerations and Pensions 

2.1.1 

Annual salary update 

In accordance with articles 64 and 65 of the Staff Regulations, the remuneration of the officials and 
other servants of the European Union is updated each year, in the light of a report presented by the 
Commission, based on statistical data prepared by Eurostat in agreement with the national statistical 
offices of the Member States, reflecting the situation in the Member States at 1 July. 

The  calculation  of  the  update  is  based  on  the  principle  of  parallelism  between  the  evolution  of  real 
(net  of  inflation)  remuneration  of  EU  officials  and  national  civil  servants  of  the  Member  States.  It 
reflects the combined effect of two main variables: 

7  
8  
9  

COM(2019) 610, 2.7.2019. 
11733/19. 
2019/2037(BUD). 

4 

 
 
 
 
 
 
                                                 
  The annual evolution of real salaries of civil servants in the central governments of a sample of 

11 Member States representing more than 75 % of the Union GDP. 

  Annual inflation in Brussels and Luxembourg calculated by weighting national consumer price 
inflation as measured by the Belgium HICP and Luxembourg CPI according to the distribution 
of EU staff serving in those Member States. 

In the Budget 2019, the forecasted salary update rate to be applied retroactively as from 1 July 2019 
was 2,3 % (6 months impact). This rate was calculated by Commission services in November 2017, 
based on the estimated evolution of the purchasing power and cost of living for the reference period 
(1.7.2019 - 30.6.2020), according to the method prescribed in the Staff Regulations. 

The Eurostat report for the current exercise, issued on 31 October in line with the provisions set out in 
Annex XI of the Staff Regulations, lays out that the adjustment of the nominal net remuneration of EU 
officials in Brussels and Luxembourg with effect from July 2019 is equal to 2,0%. The adjustment is 
necessary  to  maintain  a  parallel  development  of  purchasing  power  with  the  civil  servants  in  the 
Member States. It is lower than estimated notably due to the lower than anticipated evolution of the 
cost of living in Belgium and Luxembourg. 

Whereas the Commission report10 to the Council and the European Parliament will be adopted later in 
November,  a  proposal  to  reduce  the  budgetary  appropriations  is  justified,  in  accordance  with  the 
principles of sound financial management and realistic budgeting. 

The  proposal  is  to  reduce  the  non-differentiated  expenditure  of  heading  5  Administration  by 
EUR 9,9 million  for  2019,  of  which  EUR 3,8 million  for  the  Commission,  EUR 3,0 million  for  the 
pensions of all institutions, and EUR 3,1 million for all other participating institutions. 

2.1.2  Overview 

Budget Line 

Name 

(in EUR) 

Appropriations 

Salaries 
Remuneration and allowances 
Other staff — Secretariat and political groups 
Other staff — Security 
Other staff — Drivers in the Secretariat 
Expenditure on interpretation 
Expenditure relating to parliamentary assistance 

Section I - European Parliament 
1 0 0 0 
1 2 0 0 
1 4 0 0 
1 4 0 1 
1 4 0 2 
1 4 0 5 
4 2 2 
Sub-total Section I 
Section II – European Council and Council 
1 1 0 0 
Sub-total Section II 
Section III - Commission 
XX 01 01 01 01  Remuneration and allowances 
XX 01 01 01 03  Adjustments to remuneration 
XX 01 01 02 03  Appropriations to cover any adjustments to remuneration 
A2 01 01 
A3 01 01 
A4 01 01 

Expenditure related to officials and temporary staff 
Expenditure related to officials and temporary staff 
Expenditure related to officials and temporary staff 

Basic salaries 

-113 000 
-990 000 
-78 000 
-39 000 
-9 000 
-24 000 
-170 000 
-1 423 000 

-481 000 
-481 000 

-1 000 
-3 165 000 
-167 000 
-86 000 
-60 000 
-16 000 

10  

Article  65(1)  of  the  Staff  Regulations  and  the  Conditions  of  Employment  of  Other  Servants  of  the  European 
Union  (SR)  obliges  the  Commission  to  provide  data  pertaining  to  the  budgetary  impact  of  remuneration  and 
pensions of Union officials in the light of the 2019 update of the remuneration and pensions of the officials and 
other servants of the EU and the correction coefficients applied thereto. 

5 

 
 
 
 
 
 
  
  
  
                                                 
Budget Line 

A4 01 02 01 

External personnel 

Name 

A5 01 01 

Expenditure related to officials and temporary staff 

External personnel 
Expenditure related to officials and temporary staff 
External personnel 
Expenditure related to officials and temporary staff 
External personnel 
External personnel — Commission Representations 
Salaries, allowances and payments of Members of the institution 
External personnel — Non-decentralised management 
Weightings and adjustments to pensions and allowances 
Pensions of former Members of the European Parliament 
Pensions of former Members of the Commission 
Pensions of former Members of the Court of Justice of the European Union 
Pensions of former Members of the Court of Auditors 
Pensions of former European Ombudsmen 
Pensions of former European Data Protection Supervisors 

Remunerations and allowances 
Entitlements on entering the service, transfer and leaving the service 
Temporary allowances 
Remunerations and allowances 
Paid overtime 
Other staff 
In-service training and staff exchanges 

Remuneration, allowances and pensions 
Temporary allowances 
Remuneration and allowances 
Paid overtime 
Entitlements on entering the service, transfer and leaving the service 
Other staff  

A5 01 02 01 
A6 01 01 
A6 01 02 01 
A7 01 01 
A7 01 02 01 
16 01 02 03 
25 01 01 03 
27 01 02 09 
30 01 15 03 
30 01 16 01 
30 01 16 03 
30 01 16 04 
30 01 16 05 
30 01 16 06 
30 01 16 07 
Sub-total Section III 
Section IV - Court of Justice of the European Union 
1 0 0 0 
1 0 0 2 
1 0 2 
1 2 0 0 
1 2 0 2 
1 4 0 0 
1 4 0 4 
Sub-total Section IV 
Section V - Court of Auditors 
1 0 0 0 
1 0 2 
1 2 0 0 
1 2 0 2 
1 2 0 4 
1 4 0 0 
Sub-total Section V 
Section VI - European Economic and Social Committee 
1 2 0 0 
1 2 0 2 
1 2 0 4 
1 2 2 0 
1 4 0 0 
1 4 0 4 
1 4 0 8 

Sub-total Section VI 

Remuneration and allowances  

Section VIII - European Ombudsman 
1 2 0 0 
Sub-total Section VIII 
Section IX - European Data Protection Supervisor 
1 0 0 0 
1 1 0 0 
1 1 1 0 
3 0 1 0 

Remuneration and allowances 
Remuneration and allowances 
Contract staff 
Remuneration and allowances 

6 

Remuneration and allowances 
Paid overtime 
Entitlements on entering the service, transfer and leaving the service 
Allowances for staff retired or placed on leave in the interests of the service 
Other staff 
Graduate traineeships, grants and exchanges of officials 
Entitlements on entering the service, transfer and leaving the service 

(in EUR) 

Appropriations 

-2 000 

-24 000 

-26 000 
-55 000 
-55 000 
-19 000 
-1 000 
-27 000 
-14 000 
-109 000 
-2 932 000 
-7 000 
-10 000 
-15 000 
-7 000 
-1 000 
-1 000 
-6 800 000 

-47 000 
-2 000 
-5 000 
-378 000 
-1 000 
-11 000 
-1 000 
-445 000 

-13 000 
-3 000 
-155 000 
-1 000 
-1 000 
-6 000 
-179 000 

-104 703 
-44 
-444 
-485 
-3 404 
-1 221 
-89 

-110 390 

-13 000 
-13 000 

-1 000 
-5 000 
-1 000 
-1 000 

 
 
 
 
 
 
  
  
  
  
  
Budget Line 

Name 

Sub-total Section IX 
Section X - European External Action Service 
1 1 0 0 

Basic salaries 
Entitlements under the Staff Regulations related to the personal 
circumstances of the staff member 
Social security cover 
Contract staff 
Remuneration and entitlements of statutory staff 
External staff and outside services 
Other expenditure related to staff 

1 1 0 2 

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

(in EUR) 

Appropriations 

-8 000 

-152 000 

-39 000 

-5 000 
-20 000 
-190 000 
-32 000 
-18 000 
-456 000 
-9 915 390 

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 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.  

Conversely, the European External Action Service increased its budget request 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 latest postponement of the withdrawal of the UK11, the institutions will now have to cover 
expenditure relating to the UK as an EU Member State for nine additional months in 2019.  

The Council, the Commission, the Court of Justice, the Court of Auditors and the European Economic 
and  Social  Committee  will  aim  at  covering  the  additional  needs  by  redeployment  of  existing 
resources. 

The European Parliament requests additional appropriations for the reasons outlined below, whereas 
the European External Action Service and the European Data Protection Supervisor are proposing to 
return appropriations, which cannot be used. 

2.2.1 

European Parliament (EP) 

Following  the  decision  of  the  European  Council  on  the  composition  of  Parliament  as  from  the  9th 
legislative  period12,  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.  

11  

12  

European  Council  Decition  taken  in  agreement  with  the  United  Kingdom  extending  the  period  under  Article  50(3)  TEU  - 
EUCO XT 20024/2/19 of 28 October 2019. 
Decision (EU) 2018/937 of 28 June 2018. 

7 

 
 
 
 
 
 
  
  
                                                 
The postponement of the UK withdrawal 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.  

2.2.2 

European Data Protection Supervisor (EDPS) 

On  the  basis  of  the  new  Legal  Framework  for  Data  Protection  in  the  European  Union,  the  EDPS 
carried out an exercise of forward planning to assess its needs for 2019 and  2020, both on financial 
and human resources, for the EDPS and the European Data Protection Board (EDPB). With a view to 
foresee  the necessary  office  space  to  welcome  the  staff  reinforcement  included in  the  EDPS  budget 
request  (15  full-time  equivalents  (FTE)  for  2019  and  20  FTEs  for  2020),  an  increase  in  building 
expenditure was also requested.  

These additional appropriations were intended to cover the cost to the EDPS of fully occupying the 
building that it currently shares with the European Ombudsman. All parties involved had accepted this 
arrangement  and  it  was  expected  that  the  European  Ombudsman  would  move  into  another  building 
during the third quarter of 2019, thus enabling the EDPS to make use of the additional office space.  

However, the office space identified to accommodate the European Ombudsman’s offices continues to 
be occupied by the staff of a UK political party, due to the postponement of the withdrawal of the UK. 

As a consequence, the move has had to be delayed, and the EDPS proposes to return a total amount of 
EUR 100 000. 

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 beyond the end of the year, the EEAS has 
currently accumulated surpluses in its 2019 budget. 

These are estimated at EUR 4,0 million, after taking into account  

 

the consumption of additional rotation costs for UK nationals in Delegations; 

  appropriations  redeployed  for  the  implementation  of  security-related  measures  for  the  NEO 

building; 

  anticipation of additional expenditure unforeseen in Draft Budget 2020 relating to the creation 

of a regional hub in Costa Rica; 

  anticipation  of  certain  expenditure  relating  to  the  one-off  amounts  for  the  opening  of  the 
Delegation in London and the maintenance of the EU's presence point in Belfast, postponed to 
2020. 

8 

 
 
 
 
2.2.4  Overview 

Budget Line 

Name 

(in EUR) 

Appropriations 

Section I - European Parliament 
1 0 0 0 
1 0 0 4 
1 0 0 6 
1 0 2 
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 

3 2 5 
4 2 2 
Sub-total Section I 
Section IX - European Data Protection Supervisor 
2 0 0 
Sub-total Section IX 
Section X - European External Action Service 
1 1 0 0 

Rents, charges and buildings expenditure 

Basic salaries 
Entitlements under the Staff Regulations related to the personal 
circumstances of the staff member 
Social security cover 
Contract staff 
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 2 

1 1 0 3 
1 2 0 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 

2 420 000 
2 100 000 
1 200 000 
-1 800 000 
80 000 
3 000 000 

300 000 

320 000 
7 490 000 
15 110 000 

-100 000 
-100 000 

-724 000 

-184 000 

-28 000 
-38 000 
-1 121 000 
-851 000 
-145 000 
-854 000 
-57 000 
-4 002 000 
11 008 000 

3. 

UPDATE OF REVENUE 

3.1 

Overall  impact  of  DAB  5/2019  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 
Member  States:  as  budgeted  in  the  2019  budget,  as  amended  in  Amending  budget  No 3  (AB 
3/2019)13, and finally in the present DAB. 

13  

OJ L 288, 7.11.2019. 

9 

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

Budget 2019 

AB 3/2019 

DAB 5/2019 

(1) 

(2) 

(3) 

6 151,1 
 565,3 
2 012,3 
2 811,0 
30 494,7 
 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 

6 108,2 
 560,2 
1 993,3 
2 782,1 
30 164,5 
 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 

6 098,1 
605,2 
2 029,0 
2 802,6 
29 805,1 
263,2 

2 486,5 
1 759,8 
12 166,2 
22 600,9 
494,8 
16 778,2 

206,8 
301,4 
481,7 
382,8 
1 349,8 

119,3 
7 671,7 
3 399,6 
5 074,4 
1 932,7 

1 916,6 
 480,2 
 868,0 
2 186,3 
3 859,3 
17 490,2 
146 304,5 

1 897,1 
 475,8 
 859,3 
2 163,9 
3 815,1 
17 268,1 
144 795,1 

1 949,5 
488,3 
873,5 
2 167,5 
3 885,2 
16 622,4 
144 796,2 

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 

10 

 
 
 
 
 
 
 
 
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 forecasts14, 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 base15 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 bases16 

 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 

14   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  

15   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. 

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

11 

 
 
 
 
 
 
                                                 
Customs 
duties 
(80%) 

Uncapped 
VAT bases 

GNI bases 

Capped 
VAT bases16 

  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 Union17 and its accompanying working document, the 
2014 Calculation Method18. Pursuant to the rules of this Decision, the net TOR “windfall gains” of the 
UK resulting from the increase since 2001 in the percentage of TOR retained by Member States as a 
compensation for their collection costs are neutralised 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. 

17  OJ L 168, 7.6.2014, p. 105-111. 
18  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”. 

12 

 
 
 
 
 
 
 
                                                 
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 5/2019 
(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 5/2019 
(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 

13 

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 5/2019 

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 5/2019 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 
3 148 896  HU 
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: 

14 

 
 
 
 
 
 
 
 
 
 
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 

15 

 
 
 
 
 
4. 

SUMMARY TABLE BY MFF HEADING 

Heading 

Budget 2019 

(incl. DAB 1-3/2019) 

Draft Amending Budget 5/2019 

Budget 2019 

(incl. AB 1-3 & DAB 5/2019) 

CA 

PA 

CA 

PA 

CA 

PA 

1. 

Smart and inclusive growth 

80 627 449 848 

67 556 947 173 

80 627 449 848 

67 556 947 173 

Of which under Flexibility Instrument 

Of which under global margin for commitments 

Ceiling  

Margin 

 178 715 475 

 524 734 373 

79 924 000 000 

 178 715 475 

 524 734 373 

79 924 000 000 

1a 

Competitiveness for growth and jobs 

23 435 449 848 

20 521 537 455 

23 435 449 848 

20 521 537 455 

Of which under Flexibility Instrument 

Of which under global margin for commitments 

Ceiling 

Margin 

 178 715 475 

 174 734 373 

23 082 000 000 

 178 715 475 

 174 734 373 

23 082 000 000 

1b   Economic social and territorial cohesion 

57 192 000 000 

47 035 409 718 

57 192 000 000 

47 035 409 718 

Of which under global margin for commitments 

 350 000 000 

Ceiling 

Margin 

56 842 000 000 

 350 000 000 

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 

3 786 629 138 

3 527 434 894 

Of which under Flexibility Instrument 

 985 629 138 

Ceiling 

Margin 

2 801 000 000 

 985 629 138 

2 801 000 000 

4.  Global Europe 

11 319 265 627 

9 358 295 603 

11 319 265 627 

9 358 295 603 

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 

 1 092 610 

 1 092 610 

9 944 067 333 

9 945 997 353 

Of which offset against Contingency margin 

- 253 882 156 

Ceiling 

10 786 000 000 

Margin 

 589 143 121 

10 786 000 000 

- 253 882 156 

 588 050 511 

Of which: Administrative expenditure of the 
institutions 

7 747 285 803 

7 749 215 823 

 4 065 610 

 4 065 610 

7 751 351 413 

7 753 281 433 

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 

 694 766 431 

Total 

165 318 397 322 

147 787 439 744 

 1 092 610 

 1 092 610 

165 319 489 932 

147 788 532 354 

Of which under Flexibility Instrument 

1 164 344 613 

 961 862 659 

Of which under global margin for commitments 

1 576 000 000 

1 164 344 613 

1 576 000 000 

 961 862 659 

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 

Other special Instruments 

 870 799 794 

 705 051 794 

Margin 

1 291 065 135 

19 883 422 915 

- 253 882 156 

1 289 972 525 

19 882 330 305 

 870 799 794 

 705 051 794 

Grand Total 

166 189 197 116 

148 492 491 538 

 1 092 610 

 1 092 610 

166 190 289 726 

148 493 584 148 

16