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 2019
Date: 2020-06-26
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, 26.6.2020  COM(2020) 289 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 2019  
 
 
Annual accounts of the European Commission 2019 

CONTENTS 

CERTIFICATION OF THE ACCOUNTS ..................................................................... 2 

FINANCIAL STATEMENTS AND EXPLANATORY NOTES ............................................. 3 

BALANCE SHEET ............................................................................................. 5 

STATEMENT OF FINANCIAL PERFORMANCE ........................................................ 6 

CASHFLOW STATEMENT .................................................................................. 7 

STATEMENT OF CHANGES IN NET ASSETS ......................................................... 8 

NOTES TO THE FINANCIAL STATEMENTS ........................................................... 9 

BUDGETARY IMPLEMENTATION REPORTS ........................................................... 58 

1 

 
 
 
Annual accounts of the European Commission 2019 

CERTIFICATION OF THE ACCOUNTS 

The annual accounts of the European Commission for  the year 2019 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. 

Rosa ALDEA BUSQUETS 

Accounting Officer of the Commission 

18 June 2020 

2 

 
 
 
 
 
 
Annual accounts of the European Commission 2019 

EUROPEAN COMMISSION 
FINANCIAL YEAR 2019 

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.

3 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

CONTENTS 

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

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

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

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

NOTES TO THE FINANCIAL STATEMENTS .............................................................. 9 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

SIGNIFICANT ACCOUNTING POLICIES ..................................................... 10 

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

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

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

BUDGETARY AND LEGAL COMMITMENTS ................................................. 49 

FINANCIAL INSTRUMENTS DISCLOSURES ................................................ 51 

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

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

4 

 
 
 
Annual accounts of the European Commission 2019 

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 

Note 

31.12.2019 

 EUR million 
31.12.2018 

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 

 209 
8 180 
 591 
65 427 
26 011 
3 585 
104 004 

4 220 
25 870 
19 988 
 62 
18 538 
68 677 
172 681 

(97 050) 
(3 490) 
(52 360) 
(152 899) 

(1 097) 
(1 390) 
(27 793) 
(66 374) 
(96 654) 
(249 553) 

 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) 
(135 642) 

 (820) 
(2 489) 
(32 539) 
(62 500) 
(98 348) 
(233 990) 

(76 873) 

(65 700) 

Reserves 
Amounts to be called from Member States* 
NET ASSETS 

2.14 
2.15 

3 306 
(80 179) 
(76 873) 

3 186 
(68 885) 
(65 700) 

*  The European Parliament adopted a budget on 4 December 2019 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 2020. 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. 

5 

 
 
 
 
 
 
   
 
 
 
   
 
 
 
 
 
 
   
 
   
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EUR million 
2018 

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

108 820 
21 235 
18 128 
4 291 
2 627 
(2 288) 

152 813 

154 450 

1 798 
 725 

2 522 

3 103 
 716 

3 819 

155 335 

158 270 

(43 951) 

(13 541) 

(35 178) 

(11 218) 
(2 608) 

(18 965) 

(3 820) 
(4 085) 
(2 878) 
(8 163) 
(1 458) 
(4 866) 

(43 527) 

(13 149) 

(30 230) 

(11 935) 
(2 826) 

(17 576) 

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

(150 730) 
4 605 

(143 897) 
14 372 

Annual accounts of the European Commission 2019 

STATEMENT OF FINANCIAL PERFORMANCE 

Note 

2019 

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 
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 
Finance costs 
Other 

Total Expenses 
ECONOMIC RESULT OF THE YEAR 

3.1 

3.2 
3.3 

3.4 
3.5 

3.6 

3.7 

3.8 
3.8 
3.8 
3.9 
3.10 
3.11 

6 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

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 

2019 
4 605 

 30 
 800 
1 203 
(1 572) 

 745 

 5 
17 185 
 753 
(1 504) 
(4 745) 

3 874 

(1 803) 

(14 073) 

 99 

 (952) 

 (1) 

(2 936) 

 (121) 

1 592 

1 592 
16 946 
18 538 

EUR million 
2018 
14 372 

 29 
 705 
1 037 
(1 012) 

(12 278) 

 (5) 
7 369 
 571 
 (974) 
(6 837) 

 (814) 

 (556) 

(4 432) 

 (70) 

(1 307) 

 (9) 

(1 964) 

 7 

(6 167) 

(6 167) 
23 113 
16 946 

7 

 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
STATEMENT OF CHANGES IN NET ASSETS 

Annual accounts of the European Commission 2019 

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 
Movement in Guarantee Fund reserve 
Fair value movements 
Remeasurements in employee benefits liability 
Other 
2018 budget result credited to Member States 
Economic result of the year 
BALANCE AS AT 31.12.2019 

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

Other reserves  Fair value reserve 

Net Assets 

EUR million 

(78 077) 
 (186) 
– 
(4 432) 
 (7) 
 (556) 
14 372 
(68 885) 
 (21) 
– 
(14 073) 
 (1) 
(1 803) 
4 605 
(80 179) 

2 788 
 186 
– 
– 
 (17) 
– 
– 
2 957 
 21 
– 
– 
 (48) 
– 
– 
2 930 

 275 
– 
 (46) 
– 
- 
– 
– 
 229 
– 
 148 
– 
– 
– 
– 
 377 

(75 014) 
– 
 (46) 
(4 432) 
 (24) 
 (556) 
14 372 
(65 700) 
– 
 148 
(14 073) 
 (49) 
(1 803) 
4 605 
(76 873) 

8 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

NOTES TO THE FINANCIAL STATEMENTS 

For further information in addition to the notes below, please also see the 2019 EU consolidated annual 
accounts.

9 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

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  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,  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 
ensure the internal consistency of the EU consolidated accounts. 

Application of new and amended European Union Accounting Rules (EAR) 

New EAR which are effective for annual periods beginning on or after 1 January 2019 

The  following  new  EAR,  adopted  by  the  Accounting  Officer  of  the  Commission,  became  mandatorily 
effective for annual periods beginning on or after 1 January 2019: 

 

EAR  20  ‘Public  Sector  Combinations’,  which  is  based  on  IPSAS  40  ‘Public  Sector  Combinations’, 
establishes  the  requirements 
for  classifying,  recognising  and  measuring  public  sector 
combinations, i.e. the bringing together of separate operations into one public sector entity. 

The standard distinguishes beween two types of public sector combinations: amalgamations and 
acquisitions.  An  amalgamation  is  a  public  sector  combination  in  which  either  no  party  to  the 
combination  gains  control  on  one  or  more  operations,  or,  in  case  one  party  to  the  combination 
does  gain  control,  there  is  evidence  that  the  combination  has  the  economic  substance  of  an 
amalgamation  (the  standard  provides  several  indicators  relating  to  the  consideration  and  the 
decision-making  process  to  allow  for  that  assessment).  An  acquisition  is  a  public  sector 
combination  in  which  one party  to the  combination gains  control of  one  or  more operations  and 
there is evidence that the combination is not an amalgamation. 

Public sector combinations which are classified as an amalgamation are accounted for by appliyng 
the modified pooling-of-interests method, which requires that the resulting entity shall recognise 
the identifiable assets, liabilities and any non-controllling interests subject to the combination at 
their carrying amount with a corresponding increase or decrease in net assets (i.e. without giving 
rise to goodwill). 

Public sector combinations which are classified as acquisitions are accounted for by applying the 
acquisition  method,  which  requires  that  the  identifiable  assets  acquired  and  liabilities  assumed 
are  recognised  at  their  acquisition-date  fair-values,  and  any  non-controlling  interest  in  the 
acquired  operation  is  recognised  at  the  proportionate  share  of  the  acquired  operations’ 
identifiable net assets. Unlike an amalgamation an acquisition gives rise to goodwill (measured as 
the  excess  of  the  consideration  transferred  and  any  non-controlling  interest  over  the  net  of  the 
acquisition-date amounts of the identifiable assets acquired and liabilities assumed). 

The  standard  foresees  distinct  disclosure  requirements  in  order  to  enable  the  users  of  the  EU 
financial  statements  to  evaluate  the  nature  and  financial  effects  of  an  amalgamation  or 
acquisition,  as  well  as  the  financial  effects  of  adjustments  recognised  in  the  current  reporting 
period relating to such transactions that occurred during the period or previous reporting periods.  

Since there were no public sector combinations during the reporting period the new standard has 
no effect on the 2019 financial statements. 

10 

 
 
Annual accounts of the European Commission 2019 

New EAR adopted but not yet effective at 31 December 2019 

There are no new EAR adopted but not yet effective at 31 December 2019. 

1.2.  ACCOUNTING PRINCIPLES 

The objective of financial statements is to provide information about the financial position, performance 
and cashflows of an entity that is useful to a wide range of users. For the EU as a public sector entity, the 
objectives  are  more  specifically  to  provide  information  useful  for  decision-making,  and  to  demonstrate 
the  accountability  of  the  entity  for  the  resources  entrusted  to  it.  It  is  with  these  goals  in  mind  that  the 
present document has been drawn up.  

The  overall  considerations  (or  accounting  principles)  to  be  followed  when  preparing  the  financial 
statements  are  laid  down  in  EU  accounting  rule  1  ‘Financial  Statements’  and  are  the  same  as  those 
described  in  IPSAS  1:  fair  presentation,  accrual  basis,  going  concern,  consistency  of  presentation, 
materiality, aggregation, offsetting and comparative information. 

The  qualitative  characteristics  of  financial  reporting  are  relevance,  faithful  representation  (reliability), 
understandability, timeliness, comparability and verifiability. 

1.3.  CONSOLIDATION 

Scope of consolidation 

The  consolidated  financial  statements  of  the  EU  comprise  all  significant  controlled  entities,  joint 
arrangements  and  associates.  The  complete  list  of  consolidated  entities  can  be  found  in  note  9.  It  now 
comprises  52  controlled  entities  and  1  associate.  Among  the  controlled  entities  are  the  EU  institutions 
(including the Commission, but not the European Central Bank) and the EU agencies (except those of the 
former 2nd pillar, i.e. the Common and Foreign Security Policy). The European Coal and Steel Community 
in  Liquidation  (ECSC  i.L.)  is  also  considered  as  a  controlled  entity.  The  EU’s  only  associate  is  the 
European Investment Fund (EIF). 

Entities  falling  under  the  scope  of  consolidation  but  immaterial  to  the  EU  consolidated  financial 
statements as a whole need not be consolidated or accounted for using the 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 2019, 7 entities have been classified as such minor entities. 

Controlled entities 

In  order  to  determine  the  scope  of  consolidation  the  control  concept  is  applied.  Controlled  entities  are 
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. 

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  of  which  the  EU  and  one  or  more  parties  have  joint  control.  Joint 
control is the agreed sharing of control of an arrangement by way of a binding arrangement, which exists 
only  when  decisions  about  the  relevant  activities  require  the  unanimous  consent  of  parties  sharing 
control.  Joint  agreements  can  be  either  joint  ventures  or  joint  operations.  A  joint  venture  is  a  joint 

11 

 
Annual accounts of the European Commission 2019 

arrangement that is structured through a separate vehicle and whereby the parties that have joint control 
of the arrangement have rights to the net assets of the arrangement. Participations in joint ventures are 
accounted  for  using  the  equity  method  (see  note  1.5.4).  A  joint  operation  is  a  joint  arrangement 
whereby the parties that have joint control of the arrangements have rights to the assets, and obligations 
for  the  liabilities,  related  to  the  arrangement.  Participations  in  joint  operations  are  accounted  for  by 
recognising in the EU’s financial statements its assets and liabilities, revenue and expense, as well as its 
share of assets, liabilities, revenue and expense jointly held or incurred. 

Associates 

Associates are entities over which the EU has, directly or indirectly, significant influence but not exclusive 
or joint control. It is presumed that significant influence exists if the EU holds directly or indirectly 20 % 
or more of the voting rights. Participations in associates are accounted for using the equity method (see 
note 1.5.4). 

Non-consolidated entities the funds of which are managed by the Commission 

The  funds  of  the  Joint  Sickness  Insurance  Scheme  for  staff  of  the  EU,  the  European  Development  Fund 
and  the  Participants  Guarantee  Fund  are  managed  by  the  Commission  on  their  behalf.  However,  since 
these entities are not controlled by the EU, they are not consolidated in its financial statements. 

1.4.  BASIS OF PREPARATION 

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

1.4.1.  Currency and basis for conversion 

Functional and reporting currency 

The financial statements are presented in millions of euros, unless stated otherwise, the euro being the 
EU’s functional 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: 

12 

 
 
 
Annual accounts of the European Commission 2019 

Euro exchange rates 

Currency 
BGN 
CZK 
DKK 
GBP 
HRK 
HUF 

31.12.2019 
1.9558 
25.4080 
7.4715 
0.8508 
7.4395 
330.5300 

31.12.2018  Currency 
1.9558  PLN 
25.7240  RON 
7.4673  SEK 
0.8945  CHF 
7.4125  JPY 
320.9800  USD 

31.12.2019 
4.2568 
4.783 
10.4468 
1.0854 
121.9400 
1.1234 

31.12.2018 
4.3014 
4.6635 
10.2548 
1.1269 
125.8500 
1.145 

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, financial risk of accounts receivable and the amounts disclosed in the notes concerning 
financial instruments, accrued revenue and charges, provisions, degree of impairment of intangible assets 
and  property,  plant  and  equipment,  net  realisable  value  of  inventories,  contingent  assets  and  liabilities. 
Actual results could differ from those estimates. Changes in estimates are reflected in the period in which 
they become known, if the change affects the period only, or that period and future periods, if the change 
affects both. 

1.5.  BALANCE SHEET 

1.5.1. 

Intangible assets 

An  intangible  asset  is  an  identifiable  non-monetary  asset  without  physical  substance.  An  asset  is 
identifiable if it is either separable (i.e. it is capable of being separated or divided from the entity, e.g. by 
being  sold,  transferred,  licensed,  rented,  or  exchanged,  either  individually  or  together  with  a  related 
contract, identifiable asset or liability, regardless of whether the entity intends to do so), or arises from 
binding arrangements (including rights from contracts or other legal rights), regardless of whether those 
rights are transferable or separable from the entity or from other rights and obligations). 

Acquired  intangible  assets  are  stated  at  historical  cost  less  accumulated  amortisation  and  impairment 
losses.  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 
capitalisable  costs  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. 

Intangible assets are amortised on a straight-line basis over their estimated useful lives (3 to 11 years). 
The estimated useful lives of intangible assets depend on their specific economic lifetime or legal lifetime 
determined by an agreement. 

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 is not depreciated as it is 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: 

13 

 
Annual accounts of the European Commission 2019 

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

Straight line depreciation rate 
4 % to 10 % 
8 % to 25 % 
10 % to 25 % 
10 % to 25 % 
25 % to 33 % 
10 % to 33 % 

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

Leases 

A  lease  is  an  agreement  whereby  the  lessor  conveys  to  the  lessee  in  return  for  a  payment  or  series  of 
payments the right to use an asset for an agreed period of time. Leases are classified as either finance 
leases or operating leases. 

Finance  leases  are  leases  where  substantially  all  the  risks  and  rewards  incidental  to  ownership  are 
transferred  to  the  lessee.  When  entering  a  finance  lease  as  a  lessee,  the  assets  acquired  under  the 
finance  lease  are  recognised  as  assets  and  the  associated  lease  obligations  as  liabilities  as  from  the 
commencement of the lease term. The assets and liabilities are recognised at amounts equal to the fair 
value  of  the  leased  property  or,  if  lower,  the  present  value  of  the  minimum  lease  payments,  each 
determined at the inception of the lease. Over the period of the lease term, the assets held under finance 
leases are depreciated over the shorter of the asset’s useful life and the lease term. The minimum lease 
payments  are  apportioned  between  the  finance  charge  (the  interest  element)  and  the  reduction  of  the 
outstanding liability (the capital element). The finance charge is allocated to each period during the lease 
term so as to produce a constant periodic rate of interest on the remaining balance of the liability, which 
is  presented  as  current/non-current,  as  applicable.  Contingent  rents  are  charged  as  expenses  in  the 
period in which they are incurred.  

An operating lease is a lease other than a finance lease, i.e. a lease where the lessor retains substantially 
all  the  risks  and  rewards  incidental  to  ownership  of  an  asset.  When  entering  an  operating  lease  as  a 
lessee,  the  operating  lease  payments  are  recognised  as  an  expense  in  the  statement  of  financial 
performance on a straight-line basis over the lease term with neither a leased asset nor a leasing liability 
presented in the statement of financial position. 

1.5.3. 

Impairment of non-financial assets 

An impairment is a loss in the future economic benefits or service potential of an asset, over and above 
the systematic recognition of the loss of the asset's future economic benefits or service potential through 
amortisation or depreciation (as applicable). 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 tested for impairment whenever there is an indication at the reporting date 
that  an  asset  may  be  impaired.  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.  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,  with  the  initial 
carrying amount subsequently being increased or decreased to recognise further contributions, the EU’s 
share  of  the  surplus  or  deficit  of  the  investee,  any  impairments  and  dividends.  The  initial  cost  together 
with all movements give the carrying amount of the investment in the financial statements at the balance 
sheet date. The EU’s share of the investee’s surplus or deficit is recognised in the statement of financial 

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Annual accounts of the European Commission 2019 

performance,  and  its  share  of  investee’s  movements  in  equity  is  recognised  in  the  reserves  within  net 
assets. 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 (see note 1.3) 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 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  the  category  ‘fair  value  through  surplus  or  deficit’  if  acquired  principally 
for  the  purpose  of  being  sold  in  the  short  term,  or  if  so  designated  by  the  entity.  Derivatives  are  also 
presented in this category. Assets in this category are classified as current assets if they are expected to 
be realised within 12 months of the balance sheet date. 

(ii)  Loans and receivables 

Loans  and  receivables  are  non-derivative  financial  assets  with  fixed  or  determinable  payments  that  are 
not quoted in an active market. They arise when the EU provides money, goods or services directly to a 
debtor  with  no  intention  of  trading  the  receivable,  or  in  case  the  EU  is  subrogated  to  the  rights  of  the 
original lender following a payment made by the EU under a guarantee contract. Payments due within 12 
months  of  the  balance  sheet  date  are  classified  as  current  assets.  Payments  due  after  12  months  from 
the balance sheet date are classified as non-current assets. Loans and receivables include term deposits 
with the original maturity above three months. 

(iii) Held-to-maturity investments 

Held-to-maturity  investments  are  non-derivative  financial  assets  with  fixed  or  determinable  payments 
and  fixed  maturities  that  the  EU  has  the  positive  intention  and  ability  to  hold  to  maturity.  During  this 
financial year, the EU did not hold any investments in this category.  

(iv) Available for sale financial assets 

Available  for  sale  financial  assets  are  non-derivatives  that  are  either  designated  in  this  category  or  not 
classified  in  any  of  the  other  categories.  They  are  classified  as  either  current  or  non-current  assets, 
depending  on  the  period  of  time  the  EU  expects  to  hold  them.  Investments  in  entities  that  are  neither 
consolidated  nor  accounted  for  using  the  equity  method  and  other  equity-type  investments  (e.g.  Risk 
Capital Operations) are also classified as available for sale financial assets. 

15 

 
 
 
Annual accounts of the European Commission 2019 

Initial recognition and measurement 

Purchases  and  sales  of  financial  assets  classified  as  ‘at  fair  value  through  surplus  or  deficit,  ‘held-to-
maturity’ or ‘available for sale’ are recognised on their 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. 

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 

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Annual accounts of the European Commission 2019 

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 
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 

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Annual accounts of the European Commission 2019 

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. As the EU retains control over the pre-
financing and is entitled to a refund for the ineligible part, the amount is presented as an asset.  

Pre-financing  is  initially  recognised  on  the  balance  sheet  when  cash  is  transferred  to  the  recipient.  It  is 
measured at the amount of the consideration given. In subsequent periods pre-financing is measured at 
the  amount  initially  recognised  on  the  balance  sheet  less  the  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 in 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 heading ‘Pre-financing’. 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. 

1.5.8.  Exchange receivables and non-exchange recoverables 

The EU Accounting Rules require a separate presentation of exchange and non-exchange transactions. To 
distinguish  between  the  two  categories,  the  term  ‘receivables’  is  reserved  for  exchange  transactions, 
whereas  for  ‘non-exchange  transactions’,  i.e.  when  the  EU  receives  value  from  another  entity  without 
directly giving approximately equal value in exchange, the term ‘recoverables’ is used (e.g. 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  fair  value  as  at  the  date  of  acquisition 
(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 

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Annual accounts of the European Commission 2019 

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  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. 

Post-employment benefits 

The EU grants a set of post-employment benefits to employees, which include retirement, invalidity and 
survival  pensions  provided  under  the  Pension  Scheme  of  the  European  Officials  (PSEO),  as  well  as 
medical  coverage  provided  under  the  Joint  Sickness  Insurance  Scheme  (JSIS)  (see  note  2.9).  These 
benefits  are  provided  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: 

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. 

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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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  qualitative  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 
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.  

20 

 
Annual accounts of the European Commission 2019 

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

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

EU trust funds that are considered as part of the Commission’s operational activities are accounted for in 
the  Commission  accounts  and  further  consolidated  in  the  EU  annual  accounts.  Therefore,  contributions 
from  other  donors  to  the  EU  trust  funds  fulfil  the  criteria  of  revenues  from  non-exchange  transactions 
under  conditions  and  they  are  presented  as  financial  liabilities  until  the  conditions  attached  to  the 
contributions  transferred  are  met,  i.e.  eligible  costs  are  incurred  by  the  trust  fund.  The  trust  fund  is 
required to finance specific projects and return remaining funds at the time of winding-up. At the balance 
sheet  date  the  outstanding  contribution  liabilities  are  measured  at  contributions  received  less  the 
expenses  incurred  by  the  trust  fund,  including  estimated  amounts  when  necessary.  For  reporting 
purposes  the  net  expenses  are  allocated  to  the  contributions  of  other  donors  in  proportion  to  net 
contributions  paid  as  at 31  December.  This  allocation  of  contributions  is  only  indicative.  When  the  trust 
fund is wound up the actual split of remaining resources will be decided by the trust fund board. 

1.5.13.  Payables 

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

21 

 
 
 
Annual accounts of the European Commission 2019 

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. After the decision to impose a fine, the undertakings 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; or 

b)  not to accept the decision, in which case they lodge an appeal under EU law.  

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 TFEU). The cash received is used to clear the recoverable. 
However, subject to the agreement of the Commission’s Accounting Officer, the undertaking may present 
a bank guarantee for the amount instead. In that case the fine remains as a recoverable. If neither cash 
nor a guarantee is received and there are doubts about the undertaking’s solvency, a value reduction on 
the entitlement is recognised. 

In  case  the  undertaking  appeals  against  the  decision,  and  has  already  provisionally  paid  the  fine,  the 
amount  is  disclosed  as  a  contingent  liability,  or,  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, the outstanding recoverable 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. 

22 

 
Annual accounts of the European Commission 2019 

Interest revenue and expense 

Interest  revenue  and  expense  are  recognised  in  the  statement  of  financial  performance  using  the 
effective  interest  method.  This  is  a  method  of  calculating  the  amortised  cost  of  a  financial  asset  or  a 
financial liability and of allocating the interest revenue or interest expense over the relevant period. When 
calculating the effective interest rate, the EU estimates cashflows considering all contractual terms of the 
financial  instrument  (for  example  prepayment  options)  but  does  not  consider  future  credit  losses.  The 
calculation  includes  all  fees  and  points  paid  or  received  between  parties  to  the  contract  that  are  an 
integral part of the effective interest rate, transaction costs and all other premiums or discounts. 

Once  a  financial  asset  or  a  group  of  similar  financial  assets  has  been  written  down  as  a  result  of  an 
impairment loss, interest revenue is recognised using the rate of interest to discount the future cashflows 
for the purpose of measuring the impairment loss. 

Revenue from dividends 

Revenue  from  dividends  and  similar  distributions  is  recognised  when  the  right  to  receive  payment  is 
established. 

1.6.2.  Expenses 

Expenses from non-exchange transactions account for the majority of the EU’s expenses. They relate to 
transfers  to  beneficiaries  and  can  be  of  three  types:  entitlements,  transfers  under  agreement  and 
discretionary grants, contributions and donations. 

Transfers  are  recognised  as  expenses  in  the  period  during  which  the  events  giving  rise  to  the  transfer 
occurred,  as  long  as  the  nature  of  the  transfer  is  allowed  by  regulation  (Financial  Regulation,  Staff 
Regulations, or other regulation) or an agreement has been signed authorising the transfer, any eligibility 
criteria have been met by the beneficiary, and a reasonable estimate of the amount can be made. 

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

Expenses  from  exchange  transactions  arising  from  the  purchase  of  goods  and  services  are  recognised 
when  the  supplies  are  delivered  and  accepted  by  the  EU.  They  are  valued  at  their  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 
either  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.  A  contingent  liability  is  disclosed  unless  the 
possibility of an outflow of resources embodying economic benefits or service potential is remote. 

23 

 
Annual accounts of the European Commission 2019 

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 2019 

2.  NOTES TO THE BALANCE SHEET  

ASSETS 

2.1.  INTANGIBLE ASSETS 

Gross carrying amount at 31.12.2018 
Additions 
Disposals 
Transfer between asset categories 
Other changes 
Gross carrying amount at 31.12.2019 
Accumulated amortisation at 31.12.2018 
Amortisation charge for the year 
Amortisation written back 
Disposals 
Transfer between asset categories 
Other changes 
Accumulated amortisation at 31.12.2019 
NET CARRYING AMOUNT AT 31.12.2019 
NET CARRYING AMOUNT AT 31.12.2018 

EUR million 

 333 
 71 
 (10) 
 0 
– 
 394 
 (165) 
 (30) 
 0 
 10 
 (0) 
– 
 (185) 
 209 
 168 

25 

 
 
 
 
 
 
2.2.  PROPERTY, PLANT AND EQUIPMENT 

Annual accounts of the European Commission 2019 

Gross carrying amount at 31.12.2018 

Additions 

Disposals 

Transfer between asset categories 

Other changes 

Gross carrying amount at 31.12.2019 

Accumulated depreciation at 31.12.2018 

Depreciation charge for the year 

Depreciation written back 

Disposals 

Transfer between asset categories 

Land and 
buildings 
1 450 

 10 

 (0) 

 4 

– 

1 464 

 (875) 

 (42) 

– 

 0 

– 

Space assets 

5 259 

 10 

 (0) 

 411 

– 

5 680 

(1 341) 

 (659) 

– 

 0 

– 

Plant and 
equipment 
 266 

Furniture 
and vehicles  
 69 

Computer 
hardware 
 235 

 10 

 (16) 

 0 

– 

 260 

 (246) 

 (10) 

– 

 16 

– 

 2 

 (4) 

 (0) 

– 

 67 

 (58) 

 (4) 

– 

 4 

 0 

 15 

 (24) 

 (0) 

– 

 226 

 (200) 

 (20) 

– 

 24 

 0 

Other 

Finance leases  

 161 

 3 

 (11) 

 1 

– 

 154 

 (130) 

 (9) 

– 

 8 

 (0) 

1 548 

 4 

 (3) 

– 

– 

1 549 

 (798) 

 (56) 

 (0) 

 4 

– 

Accumulated depreciation at 31.12.2019 

 (917) 

(2 000) 

 (240) 

 (58) 

 (196) 

 (131) 

 (850) 

Assets under 
construction 
2 759 

 829 

– 

 (416) 

 (0) 

3 172 

– 

– 

– 

– 

– 

– 

EUR million 

Total 

11 747 

 883 

 (58) 

 (0) 

 (0) 

12 572 

(3 649) 

 (800) 

 (0) 

 56 

 0 

(4 392) 

NET CARRYING AMOUNT AT 31.12.2019 

NET CARRYING AMOUNT AT 31.12.2018 

 547 

 575 

3 680 

3 918 

 20 

 20 

 9 

 11 

 30 

 35 

 23 

 30 

 699 

 750 

3 172 

2 759 

8 180 

8 098 

26 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

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 2019,  the  EU  holds 
29.7 % of the ownership interest in EIF (2018: 29.7 %). 

Participation at 31.12.2018 
Contributions 
Dividends received 
Share of net result 
Share in the net assets 
Participation at 31.12.2019 

EIF summarised financial information: 

Assets 
Liabilities 
Revenue 
Expenses 
Surplus/(deficit) 

EUR million 
European Investment Fund 
 591 
– 
 (3) 
 53 
 (49) 
 591 

31.12.2019 
Total EIF 
2 965 
 (975) 
 337 
 (161) 
 176 

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

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 

31.12.2019 
1 990 
29.70% 

 591 

EUR million 
31.12.2018 
1 988 
29.70% 

 591 

The Commission has paid-in 20 % of its subscribed shares in the EIF capital at 31 December 2019, 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 2019 

2.4.  FINANCIAL ASSETS 

Note 

31.12.2019 

EUR million 
31.12.2018 

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

Current 
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 

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 
Connecting Europe Facility 
Risk Sharing Finance Facility 
EU SME Equity Facilities 
European Fund for South East Europe 
Risk Capital Operations 
Energy Efficiency Finance Facility 
Other 

Total 
Non-current 
Current 

13 941 
 134 
51 352 
65 427 

2 932 
 3 
1 285 
4 220 
69 647 

12 345 
 14 
51 559 
63 917 

1 592 
 2 
2 281 
3 875 
67 793 

31.12.2019 
1 863 
 188 
2 051 

EUR million 
31.12.2018 
1 888 
 188 
2 076 

6 654 
2 545 
 595 
9 794 

2 455 
 699 
 597 
 507 
 166 
 112 
 105 
 387 
5 028 
16 873 
13 941 
2 932 

5 000 
2 465 
 9 
7 474 

2 031 
 540 
 679 
 464 
 115 
 113 
 101 
 343 
4 386 
13 937 
12 345 
1 592 

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 

31.12.2019 

31.12.2018 

EUR million 

Fair value 

 3 
 134 
 137 
 134 
 3 

Notional 
amount  
 476 
 674 
1 150 
 674 
 476 

Fair value 

 2 
 14 
 16 
 14 
 2 

Notional 
amount  
 393 
1 439 
1 832 
1 439 
 393 

28 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

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 

31.12.2019 
13 949 
1 543 

EUR million 
31.12.2018 
12 487 
 275 

1 518 
17 010 

1 191 
13 953 

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

Opening balance at 1.1.2019 
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 31.12.2019 

2.4.3. 

Loans 

EUR million 

1 191 
 173 
 90 
 71 
– 
– 
 (8) 
1 518 

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 

31.12.2019 
52 564 
 73 
52 637 
51 352 
1 285 

EUR million 
31.12.2018 
53 775 
 64 
53 840 
51 559 
2 281 

Total at 31.12.2018 
New loans 
Repayments 
Exchange differences 
Changes in carrying amount 
Impairment 
Total at 31.12.2019 
Non-current 
Current 

EFSM 
47 400 
– 
– 
– 
 (6) 
– 
47 394 
46 800 
 594 

BOP 
1 734 
– 
(1 500) 
– 
 (33) 
– 
 201 
 200 
 1 

MFA 
4 388 
 420 
 (52) 
– 
 (1) 
– 
4 754 
4 112 
 643 

Euratom 
 254 
– 
 (40) 
– 
 (0) 
– 
 214 
 178 
 35 

EUR million 
Total 
53 775 
 420 
(1 592) 
– 
 (40) 
– 
52 564 
51 290 
1 273 

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

Nominal  value  of  loans  for  financial  assistance  at  31  December  2019  total  EUR 51  941 million  (2018: 
EUR 53 114 million). 

29 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

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) 

2.4.3.2.  Other loans 

Loans with special conditions 
Total 
Non-current 
Current 

31.12.2019 
0 % - 3.82 % 
0.08 % - 5.76 % 
2.88 % 
0.50 % - 3.75 % 

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

31.12.2019 
 73 
 73 
 62 
 12 

EUR million 
31.12.2018 
 64 
 64 
 37 
 27 

Nominal value of other loans at 31 December 2019 total EUR 680 million (2018: EUR 615 million). 

Impairment on other loans 

Loans with special conditions 
Subrogated loans 
Total 

31.12.2018  Additions  Reversals  Write-off  
– 
 2 
– 
 75 
– 
 77 

 8 
 579 
 587 

– 
– 
– 

EUR million 
Other  31.12.2019 
 10 
 658 
 668 

– 
 4 
 4 

30 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

2.5.  PRE-FINANCING 

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

Current 
Pre-financing 
Other advances to Member States 

Total 

2.5.1. 

Pre-financing 

Note 

31.12.2019 

EUR million 
31.12.2018 

2.5.1 
2.5.2 

2.5.1 
2.5.2 

21 906 
4 045 
 60 
26 011 

22 978 
2 892 
25 870 
51 881 

21 615 
4 122 
 71 
25 807 

22 106 
2 396 
24 502 
50 309 

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 31.12.2019 

Gross 
amount 

Cleared via 
accruals 

EUR million 
Net amount 
at 31.12.2018 

3 193 

17 985 
6 830 
3 549 

(3 540) 
(1 530) 
(1 463) 

3 193 

3 743 

14 444  18 088 
6 548 
4 684 

5 301 
2 086 

(3 461) 
(1 147) 
(2 498) 

13 162 
16 522 
 858 

(8 633) 
(10 339) 
 (665) 

4 529  12 827 
6 184  15 012 
 585 

 194 

(8 523) 
(9 540) 
 (432) 

4 038 

(3 158) 

 880 

3 830 

(2 975) 

1 491 

 (861) 

 630 

1 546 

 (879) 

3 743 

14 627 
5 401 
2 186 

4 304 
5 472 
 152 

 856 

 667 

8 289 

(5 317) 

2 972 

7 684 

(5 053) 

2 631 

10 574 
86 493 
21 906 
64 587 

(6 104) 
(41 609) 
– 
(41 609) 

4 471 

9 107 
44 884  83 655 
21 906  21 615 
22 978  62 040 

(5 426) 
(39 933) 
– 
(39 933) 

3 681 
43 721 
21 615 
22 106 

2.5.2.  Other advances to Member States 

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

31.12.2019 

EUR million 
31.12.2018 

3 304 

3 634 
6 937 
4 045 
2 892 

3 675 

2 843 
6 518 
4 122 
2 396 

31 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

2.6.  EXCHANGE RECEIVABLES AND NON-EXCHANGE 

RECOVERABLES 

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

Current 
Recoverables from non-exchange transactions 
Receivables from exchange transactions 

Total 

Note 

2.6.1 
2.6.2 

2.6.1 
2.6.2 

31.12.2019 

EUR million 
31.12.2018 

2 436 
1 150 
3 585 

19 172 
 816 
19 988 
23 573 

 409 
 6 
 415 

22 075 
1 828 
23 903 
24 318 

2.6.1. 

 Recoverables from non-exchange transactions 

Non-current 
Member States 
Other recoverables 

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

Total 

Note 

31.12.2019 

EUR million 
31.12.2018 

2.6.1.1 

2.6.1.1 
2.6.1.2 
2.6.1.3 

2 422 
 14 
2 436 

6 117 
11 301 
1 581 
 173 
19 172 
21 607 

 397 
 12 
 409 

10 836 
9 727 
1 291 
 222 
22 075 
22 485 

32 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

2.6.1.1.  Recoverables from Member States 

TOR A accounts 
TOR separate accounts 
Own resources to be received 
Impairment 
Other 
Own resource recoverables 
European Agricultural Guarantee Fund (EAGF) 
European Agricultural Fund for Rural Development (EAFRD) and other rural 
development instruments 
Impairment 
EAGF and rural development recoverables 
Pre-financing recovery 
VAT paid and recoverable 
Other recoverables from Member States 
Total 
Non-current 
Current 

2.6.1.2. 

 Recoverables from competition fines 

EUR million 
  31.12.2019  31.12.2018 
5 609 
1 612 
2 758 
 (991) 
 86 
9 075 
1 708 

5 478 
1 591 
 7 
 (931) 
– 
6 145 
1 722 

 879 

 (822) 
1 779 
 443 
 11 
 161 
8 539 
2 422 
6 117 

 955 

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

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 

31.12.2019 
14 606 
(3 125) 
 (180) 
11 301 
– 
11 301 

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

31.12.2019 
1 502 
 79 
1 581 
– 
1 581 

EUR million 
31.12.2018 
1 238 
 53 
1 291 
 0 
1 291 

33 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

2.6.2.  Receivables from exchange transactions 

Non-current 
Late payment interest 
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 

31.12.2019 

EUR million 
31.12.2018 

1 137 
 13 
1 150 

 205 
 (148) 
 142 
 617 
 816 
1 966 

– 
 6 
 6 

 181 
 (141) 
 157 
1 631 
1 828 
1 834 

31.12.2019 
 47 
 15 
 62 

EUR million 
31.12.2018 
 52 
 16 
 67 

31.12.2019 
15 519 
 91 
 7 
 0 
15 617 
1 567 
1 258 
 97 
18 538 

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

34 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

LIABILITIES 

2.9.  PENSION AND OTHER EMPLOYEE BENEFITS 

Net employee benefit scheme liability 

Defined Benefit Obligation 
Plan assets 
Net liability 

Pension 
Scheme of 
European 
Officials 
83 842 
N/A 
83 842 

Other 
retirement 
benefit 
schemes 
1 446 
N/A 
1 446 

Joint 
Sickness 
Insurance 
Scheme 
12 071 
 (309) 
11 762 

31.12.2019 
Total 

EUR million 
31.12.2018 
Total 

97 359 
 (309) 
97 050 

80 160 
 (296) 
79 865 

Actuarial assumptions - employee benefits 

2019 
Nominal discount rate  
Expected inflation rate  
Real discount rate 
Expected rate of salary increases 
Medical cost trend rates 
Retirement age 
2018 
Nominal discount rate  
Expected inflation rate  
Real discount rate 
Expected rate of salary increases 
Medical cost trend rates 
Retirement age 

Pension Scheme of 
European Officials 

Joint Sickness 
Insurance Scheme 

1.1% 
1.3% 
(0.2)% 
1.8% 
N/A 

63/64/66 

1.9% 
1.4% 
0.5% 
1.9% 
N/A 

63/64/66 

1.2% 
1.3% 
(0.1)% 
1.8% 
3.0% 
63/64/66 

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

Movement in present value of employee benefits defined benefit obligation 

Present value as at 31.12.2018 
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 31.12.2019 

Pension 
Scheme of 
European 
Officials  
70 017 

Other 
retirement 
benefit 
Schemes 
1 154 

Joint 
Sickness 
Insurance 
Scheme 
8 990 

EUR million 
Total 

80 160 

2 824 
1 339 

 82 
 20 

 277 
 180 

3 183 
1 539 

1 910 
– 
9 339 

 70 
– 
 143 

 (339) 
– 
3 065 

1 641 
– 
12 547 

(1 587) 
83 842 

 (23) 
1 446 

 (101) 
12 071 

(1 711) 
97 359 

35 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

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

Present value as at 31.12.2018 
Net movement in plan assets 
Present value as at 31.12.2019 

Joint Sickness Insurance Scheme sensitivity 

EUR million 

 296 
 14 
 309 

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

2019 
Increase 0.1%  Decrease 0.1% 

2018 
Increase 0.1%  Decrease 0.1% 

EUR million 

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

 8 

 (8) 

 12 

 (12) 

 352 

 (341) 

 253 

 (246) 

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

Defined benefit obligation 

2019 
Increase 0.1%  Decrease 0.1% 
 322 

 (311) 

2018 
Increase 0.1%  Decrease 0.1% 
 226 

 (219) 

EUR million 

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

Defined benefit obligation 

Increase 0.1%  Decrease 0.1% 
 29 

 (30) 

Increase 0.1%  Decrease 0.1% 
 25 

 (26) 

2019 

EUR million 

2018 

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

Defined benefit obligation 

2019 

One year 
increase 
 (363) 

One year 
decrease 
 383 

2018 

One year 
increase 
 (91) 

Pension Scheme of European Officials sensitivity 

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

EUR million 

One year 
decrease 
 54 

EUR million 

Defined benefit obligation 

Increase 0.1% 
(1 797) 

Decrease 0.1% 
1 854 

Increase 0.1% 
(1 434) 

Decrease 0.1% 
1 478 

2019 

2018 

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

Defined benefit obligation 

Increase 0.1% 
1 774 

Decrease 0.1% 
(1 724) 

Increase 0.1% 
1 427 

Decrease 0.1% 
(1 388) 

2019 

EUR million 

2018 

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

Defined benefit obligation 

2019 

One year 
increase 
 (620) 

One year 
decrease 
 771 

2018 

One year 
increase 
 (573) 

EUR million 

One year 
decrease 
 645 

36 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

2.10.  PROVISIONS 

Amount at 
31.12.2018 

Additional 
provisions 

Unused 
amounts 
reversed 

Amounts 
used 

Transfer 
between 
categories 

Change in 
estimation 

EUR million 
Amount at 
31.12.2019 

Legal cases: 
     Agriculture 
     Other 
Nuclear site 
dismantling 
Financial 
Other 

Total 
Non-current 

 270 
 11 

1 933 

1 551 
 68 
3 833 
3 013 

 439 
 1 

– 

 587 
 28 
1 056 
 868 

– 
 (7) 

– 

 (1) 
 (9) 
 (17) 
 (1) 

 (269) 
 (1) 

 (34) 

 (206) 
 (16) 
 (526) 
 (273) 

– 
– 

– 

– 
– 
– 
 (357) 

– 
– 

 233 

 7 
– 
 240 
 239 

 440 
 5 

2 132 

1 938 
 71 
4 586 
3 490 

Current 

 820 

 188 

 (17) 

 (252) 

 357 

 1 

1 097 

37 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

2.11.  FINANCIAL LIABILITIES 

Note 

31.12.2019 

EUR million 
31.12.2018 

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

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

2.11.1 
2.11.2 

2.11.1 
2.11.2 

Total 

2.11.1.  Financial liabilities at amortised cost  

52 351 
 9 
52 360 

1 367 
 4 
 20 
1 390 
53 750 

52 757 
 7 
52 764 

2 475 
 15 
– 
2 489 
55 253 

Borrowings for financial assistance 
Other financial liabilities 
Total 
Non-current 
Current 

2.11.1.1.  Borrowings for financial assistance 

Note 
2.11.1.1 
2.11.1.2 

EUR million 
31.12.2019  31.12.2018 
53 775 
1 456 
55 231 
52 757 
2 475 

52 564 
1 154 
53 718 
52 351 
1 367 

Total at 31.12.2018 
New loans 
Repayments 
Exchange differences 
Changes in carrying amount 
Total at 31.12.2019 
Non-current 
Current 

EFSM 
47 400 
– 
– 
– 
 (6) 
47 394 
46 800 
 594 

BOP 
1 734 
– 
(1 500) 
– 
 (33) 
 201 
 200 
 1 

MFA  Euratom 
 254 
– 
 (40) 
– 
 (0) 
 214 
 178 
 35 

4 388 
 420 
 (52) 
– 
 (1) 
4 754 
4 112 
 643 

EUR million 
Total 
53 775 
 420 
(1 592) 
– 
 (40) 
52 564 
51 290 
1 273 

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

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

31.12.2019 
0% - 3.82% 
0% - 5.68% 
2.88% 
0.50% - 3.75% 

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

38 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

2.11.1.2.  Other financial liabilities 

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

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

Total 

Finance lease liabilities 

Land and buildings 
Other fixed assets 
Total at 31.12.2019 
Interest element 
Total future minimum lease payments 
at 31.12.2019 
Total future minimum lease payments at 
31.12.2018 

31.12.2019 

EUR million 
31.12.2018 

 800 
 210 
 51 
1 061 

 67 
 24 
– 
 1 
 93 
1 154 

 860 
 235 
 141 
1 235 

 64 
 23 
 125 
 9 
 221 
1 456 

Future amounts to be paid 

EUR million 

< 1 year  1 - 5 years  > 5 years  Total Liability 
 852 
 15 
 867 
 301 

 291 
 10 
 301 
 150 

 499 
– 
 499 
 103 

 63 
 5 
 67 
 48 

 115 

 451 

 602 

1 168 

 115 

 450 

 710 

1 275 

2.11.2.  Financial liabilities at fair value through surplus or deficit  

31.12.2019 

31.12.2018 

EUR million 

Type of derivative 

Notional 
amount  

Fair value 

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

 752 
 13 
 765 
 148 
 617 

 10 
 2 
 12 
 9 
 4 

Notional 
amount  
 536 
 11 
 546 
 82 
 464 

Fair value 

 20 
 2 
 22 
 7 
 15 

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 

31.12.2019 
– 
 2 

 10 

 12 

EUR million 
31.12.2018 
– 
 2 

 20 

 22 

39 

 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

2.12.  PAYABLES 

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 

Gross 
Amount 

Adjustments* 

Net Amount 
at 
31.12.2019 

Gross 
Amount 

Adjustments* 

EUR million 
Net Amount 
at 
31.12.2018 

 21 

8 068 

2 882 

 854 

1 562 

 (0) 

(2 437) 

 (558) 

 (45) 

 (180) 

 20 

5 631 

2 325 

 809 

1 381 

 247 

 (0) 

10 761 

(1 724) 

5 195 

 632 

1 461 

 (496) 

 (75) 

 (179) 

 247 

9 037 

4 699 

 557 

1 282 

13 386 

(3 220) 

10 166 

18 296 

(2 475) 

15 822 

16 255 

– 

1 372 

N/A 

N/A 

N/A 

16 255 

14 772 

– 

 769 

1 372 

1 176 

N/A 

N/A 

N/A 

(2 475) 

14 772 

 769 

1 176 

32 539 

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

(3 220) 

31 014 

27 793 

35 013 

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 

31.12.2019 
66 185 
 138 
 52 
66 374 

EUR million 
31.12.2018 
62 263 
 213 
 24 
62 500 

31.12.2019 
28 193 
18 583 
9 525 
3 016 
6 867 
66 185 

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

40 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

NET ASSETS 

2.14.  RESERVES 

Fair value reserve 
Guarantee Fund reserve 
Other reserves 
Total 

2.14.1.  Fair value reserve 

Note 
2.14.1 

31.12.2019 
 377 
2 870 
 59 
3 306 

EUR million 
31.12.2018 
 229 
2 849 
 108 
3 186 

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 

31.12.2019 
 176 
 (28) 
 148 

EUR million 
31.12.2018 
 (68) 
 22 
 (46) 

2.15.  AMOUNTS TO BE CALLED FROM MEMBER STATES 

Amounts to be called from Member States at 31.12.2018 
Return of 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 31.12.2019 

EUR million 

68 885 
1 803 
 21 
14 073 
 1 
(4 605) 

80 179 

41 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

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 

2019 
21 235 
 0 
21 235 

EUR million 
2018 
22 763 
 4 
22 767 

REVENUE FROM NON-EXCHANGE TRANSACTIONS: 
TRANSFERS  

3.2.  RECOVERY OF EXPENSES 

Shared management 
Direct management 
Indirect management 
Total 

2019 
2 547 
 65 
 16 
2 627 

EUR million 
2018 
2 116 
 65 
 31 
2 213 

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 

2019 
1 451 
 966 
 331 
 47 
 16 
 2 
(1 719) 
(3 725) 
 343 
(2 288) 

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

42 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

REVENUE FROM EXCHANGE TRANSACTIONS   

3.4.  FINANCIAL REVENUE 

Interest on: 
     Late payments 
     Loans 
     Other  
Premium on financial guarantee liability 
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 

2019 

 133 
1 178 
 67 
 193 
 29 

 125 

 69 
 3 
1 798 

EUR million 
2018 

1 458 
1 259 
 63 
 121 
 103 

 29 

 23 
 48 
3 103 

3.5.  OTHER REVENUE FROM EXCHANGE TRANSACTIONS 

Foreign exchange gains 
Share of net result of EIF 
Fee and premium revenue related to financial instruments 
Sales of goods 
Fixed assets related revenue 
Other 
Total 

EXPENSES 

3.6.  SHARED MANAGEMENT 

2019 
 335 
 53 
 43 
 16 
 4 
 274 
 725 

EUR million 
2018 
 318 
 37 
 54 
 18 
 7 
 281 
 716 

Implemented by Member States 
European Agricultural Guarantee Fund 
European Agricultural Fund for Rural Development and other rural 
development instruments 
European Regional Development Fund and Cohesion Fund 
European Social Fund 
Other 
Total 

2019 
43 951 

13 541 

35 178 
11 218 
2 608 

EUR million 
2018 
43 527 

13 149 

30 230 
11 935 
2 826 

106 495 

101 666 

43 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

3.7.  DIRECT MANAGEMENT 

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

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 

44 

2019 
8 458 
10 095 
 412 

18 965 

2019 
3 820 
 637 
3 448 
2 878 

10 783 

EUR million 
2018 
8 146 
8 962 
 468 

17 576 

EUR million 
2018 
3 622 
 679 
3 337 
3 569 

11 208 

2019 
3 442 
4 721 
8 163 

EUR million 
2018 
3 328 
4 461 
7 789 

2019 

1 172 
 21 
 52 
 19 
 105 
 5 

 57 

 26 

EUR million 
2018 

1 252 
 25 
 56 
 25 
 126 
 20 

 95 

 41 

1 458 

1 640 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

3.11.  OTHER EXPENSES 

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

Expenses relating to research and development are as follows: 

Research costs 
Non-capitalised development costs 
Total 

2019 
1 294 
1 046 
 883 
 491 
 328 
 188 
 91 
 544 
4 866 

EUR million 
2018 
 919 
 953 
 831 
 470 
 328 
 195 
 1 
 322 
4 019 

2019 
 381 
 69 
 449 

EUR million 
2018 
 373 
 58 
 430 

45 

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

Annual accounts of the European Commission 2019 

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 

Total expenses 

Economic result of the year 

– 

– 

– 

– 

1 520 

1 202 

2 722 

 423 

 155 

 578 

3 300 

– 

– 

– 

– 

1 076 

 29 

1 104 

 1 

 (12) 

 (11) 

1 093 

– 

– 

(43 951) 

(13 541) 

(35 178) 

(11 218) 

 (512) 

(12 763) 

(2 799) 

 (526) 

(2 037) 

(1 637) 

 (113) 

(2 287) 

– 

– 

 (668) 

 (676) 

 (62) 

 (2) 

 (1) 

 (350) 

 (56) 

 (493) 

(69 070) 

(65 770) 

(59 800) 

(58 707) 

– 

– 

– 

– 

 10 

 43 

 54 

 0 

 (5) 

 (5) 

 49 

– 

– 

– 

– 

(1 382) 

(1 060) 

 (927) 

 (242) 

 (1) 

 (444) 

 (0) 

 (137) 

(4 194) 

(4 145) 

– 

– 

– 

– 

 22 

 214 

 235 

 11 

 13 

 24 

 260 

– 

– 

– 

– 

 (46) 

(4 446) 

 (32) 

(3 314) 

 (839) 

 (604) 

 (9) 

 (136) 

(9 427) 

(9 167) 

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

46 

Not assigned to 
MFF headings* 

EUR million 

Total 

108 820 

108 820 

21 235 

18 128 

4 291 

– 

(4 607) 

21 235 

18 128 

4 291 

2 627 

(2 288) 

147 867 

152 813 

1 363 

 330 

1 693 

1 798 

 725 

2 522 

– 

– 

– 

– 

 0 

 830 

 830 

 0 

 243 

 243 

1 073 

149 561 

155 335 

– 

– 

– 

– 

– 

 (19) 

– 

 (0) 

 (0) 

(5 129) 

 (79) 

(1 475) 

(6 702) 

(5 629) 

– 

– 

– 

– 

 (0) 

 0 

– 

– 

– 

– 

(1 200) 

 (337) 

(43 951) 

(13 541) 

(35 178) 

(11 218) 

(2 608) 

(18 965) 

(3 820) 

(4 085) 

(2 878) 

(8 163) 

(1 458) 

(4 866) 

(1 538) 

(150 730) 

148 023 

4 605 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

4. 

CONTINGENT LIABILITIES AND ASSETS 

4.1.  CONTINGENT LIABILITIES 

4.1.1.  Budgetary guarantees 

EIB external lending mandate 
guarantees 
EFSI guarantee 
EFSD guarantee 
Total 

EUR million 

31.12.2019 

31.12.2018 

Ceiling 

Signed  Disbursed 

Ceiling 

Signed  Disbursed 

37 929 

31 521 

20 014 

40 417 

30 889 

20 510 

25 797 
 50 
63 775 

21 889 
– 
53 410 

17 634 
– 
37 648 

25 898 
– 
66 315 

19 842 
– 
50 731 

15 764 
– 
36 273 

4.1.2.  Guarantees relating to financial assistance (borrowing and lending 

activities) 

EFSM 
BOP 
MFA 
Euratom 
Total 

31.12.2019 
Drawn  Undrawn 
– 
47 394 
– 
 201 
 560 
4 754 
 200 
 214 
 760 
52 564 

Total 
47 394 
 201 
5 314 
 414 
53 324 

31.12.2018 
Drawn  Undrawn 
– 
47 400 
– 
1 734 
 980 
4 388 
 200 
 254 
1 180 
53 775 

EUR million 

Total 
47 400 
1 734 
5 368 
 454 
54 955 

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 

31.12.2019 
1 584 
 110 
 684 
 38 
2 416 

EUR million 
31.12.2018 
1 467 
 642 
 579 
 29 
2 717 

31.12.2019 
3 128 
 199 
 341 
2 123 
5 791 

EUR million 
31.12.2018 
3 187 
 653 
 26 
1 823 
5 688 

47 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

4.2.  CONTINGENT ASSETS 

Guarantees received: 
     Performance guarantees 
     Other guarantees 
Other contingent assets 
Total 

31.12.2019 

EUR million 
31.12.2018 

 75 
 6 
 31 
 113 

 79 
 7 
 25 
 111 

48 

 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

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 

EUR million 
31.12.2019  31.12.2018 
234 621 

249 357 

72 832 

143 883 

10 227 
332 416 

14 592 
393 097 

5.1.  OUTSTANDING BUDGETARY COMMITMENTS NOT YET 

EXPENSED 

Outstanding budgetary commitments not yet expensed 

31.12.2019 
249 357 

EUR million 
31.12.2018 
234 621 

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 
according to 
latest 
Commission 
Decision (B) 

EUR million 

Budget 
commitments 
including 
decommitments 
(C) 

Legal 
commitments 
pending 
implementation 
(B-C) 

262 585 

262 407 

220 447 

92 912 

92 751 

78 841 

– 

– 

– 

3 814 

3 813 

3 235 

41 960 

13 910 

– 

 578 

359 310 

358 971 

302 524 

56 448 

100 079 

100 079 

85 404 

14 675 

5 749 

5 687 

4 828 

 859 

105 829 

105 766 

90 232 

15 534 

4 575 
3 159 

7 733 

4 482 
3 095 

7 577 

4 032 
2 695 

6 727 

 450 
 401 

 851 

Total 

472 872 

472 315 

399 483 

72 832 

49 

 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

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 

Buildings 
IT materials and other equipment 
Total 

Note 

5.3.1 

EUR million 
31.12.2019  31.12.2018 
11 554 
1 267 
 493 
 46 
 796 
 435 
14 592 

7 680 
 601 
 438 
 223 
 844 
 440 
10 227 

Future amounts to be paid 
< 1 year  1- 5 years  > 5 years 
 326 
– 
 326 

 371 
 5 
 376 

 139 
 2 
 141 

EUR million 

Total 
 836 
 8 
 844 

50 

 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

6. 

FINANCIAL INSTRUMENTS DISCLOSURES 

6.1.  CURRENCY RISKS 

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

USD 

GBP 

DKK 

31.12.2019 
SEK 

EUR  Other 

Total 

EUR million 

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 

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 

 17 
 8 
 93 
 302 

 (0) 

 (3) 
 (3) 
 299 

 577 

 62 

 17 

 (393) 

– 

– 

– 
 801 
 309 
1 172 

– 
 62 
 318 
 396 

 9 

– 

– 
 93 
 431 
 533 

16 189 

 21 

16 873 

 529 

– 

 137 

 49 
22 476 
15 824 
55 068 

 7 
 133 
1 563 
1 723 

 73 
23 573 
18 538 
59 194 

– 

– 

– 

 (10) 

 (2) 

 (12) 

 (0) 
 (0) 
1 172 

– 
– 
 396 

 (1) 
(27 786) 
 (1)  (27 796) 
27 272 
 531 

 (3) 
(27 793) 
 (5)  (27 806) 
31 388 

1 717 

USD 

GBP 

DKK 

31.12.2018 
SEK 

EUR  Other 

Total 

EUR million 

 619 

 57 

 18 

 (475) 

– 

– 

 6 
– 
 43 
 193 

– 
4 109 
1 520 
5 686 

– 
 98 
 287 
 403 

 7 

– 

– 
 108 
 406 
 522 

13 220 

 17 

13 937 

 491 

– 

 16 

 53 
19 777 
13 197 
46 737 

 5 
 226 
1 493 
1 741 

 64 
24 318 
16 946 
55 282 

– 

– 

– 

– 

 (20) 

 (2) 

 (22) 

 (0) 
 (0) 
 193 

– 
– 
5 686 

– 
– 
 403 

– 
(32 538) 
–  (32 558) 
14 179 

 522 

 (1) 
(32 539) 
 (2)  (32 561) 
22 721 

1 738 

Total 
* Excluding back-to-back loans for financial assistance.  

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

2019 
2018 

2019 
2018 

EUR million 

Economic result 

GBP 
 (101) 
 (512) 

DKK 
 (35) 
 (35) 

SEK 
 (48) 
 (47) 

Net assets 
GBP 
 (6) 
 (5) 

DKK 
 (2) 
 (2) 

EUR million 

SEK 
 (1) 
 (1) 

USD 
 (10) 
 (5) 

USD 
 (17) 
 (13) 

51 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

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

2019 
2018 

2019 
2018 

Economic result 

GBP 
 123 
 625 

DKK 
 42 
 43 

Net assets 
GBP 
 7 
 6 

DKK 
 2 
 2 

EUR million 

SEK 
 58 
 57 

EUR million 

SEK 
 1 
 1 

USD 
 12 
 6 

USD 
 20 
 16 

6.2.  INTEREST RATE RISK 

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

2019: Available for sale financial assets 

2018: Available for sale financial assets 

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

EUR million 

Effect on net assets 

 (395) 
 426 
 (303) 
 325 

6.3.  CREDIT RISK 

Analysis of the age of financial assets that are not impaired 

Loans 
Receivables and recoverables 
Financial assets at fair value 
through surplus or deficit 
Total at 31.12.2019 
Loans 
Receivables and recoverables 
Financial assets at fair value 
through surplus or deficit 
Total at 31.12.2018 

Total 

52 637 
23 573 

 137 

76 347 
53 840 
24 318 

Neither past 
due nor 
impaired 
52 636 
9 018 

 137 

61 791 
53 840 
14 399 

 16 

 16 

Past due but not impaired 

EUR million 

< 1 year 

1-5 years  > 5 years 

 1 
2 718 

– 

2 719 
– 
6 577 

– 

– 
11 542 

– 

11 542 
– 
3 208 

– 

– 
 295 

– 

 295 
– 
 134 

– 

 134 

78 174 

68 254 

6 577 

3 208 

52 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

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

Available 
for sale* 

Financial 
assets at 
FVSD** 

31.12.2019 
Loans   Receivables 
and 
recoverables 

EUR million 

Cash 

Total 

8 013 
3 329 
1 906 
 216 
13 464 

 137 
– 
– 
– 
 137 

– 
22 998 
24 711 
4 855 
52 564 

3 589 
1 434 
1 864 
 477 
7 364 

14 534 
3 443 
 299 
 257 
18 533 

26 273 
31 204 
28 779 
5 806 
92 061 

– 

– 

– 

– 

 72 

– 

1 652 

 2 

 5 

– 

1 730 

 2 

– 
13 464 

– 
 137 

 72 
52 636 

1 654 
9 018 

 5 
18 538 

1 731 
93 793 

Available 
for sale* 

Financial 
assets at 
FVSD** 

31.12.2018 

Loans   Receivables 
and 
recoverables 

EUR million 

Cash 

Total 

8 097 
2 903 
1 487 
– 
12 487 

– 

– 

 16 
– 
– 
– 
 16 

– 

– 

– 
23 513 
25 774 
4 488 
53 775 

8 546 
 746 
1 454 
 199 
10 944 

13 941 
2 622 
 163 
 217 
16 942 

30 600 
29 784 
28 877 
4 904 
94 165 

 62 

 2 

3 455 

 0 

 3 

– 

3 520 

 2 

– 
12 487 

– 
 16 

 64 
53 840 

3 455 
14 399 

 3 
16 946 

3 522 
97 687 

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 

Total 

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 

Total 

 Available for sale financial assets (excluding instruments in money market funds and other equity instruments). 

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

53 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

6.4.  LIQUIDITY RISK 

Maturity analysis of financial liabilities by remaining contractual maturity 

Borrowings 
Payables 
Financial guarantee liabilities 
Other financial liabilities 
Total at 31.12.2019 
Borrowings 
Payables 
Other financial liabilities 
Total at 31.12.2018 

< 1 year 
(1 273) 
(27 793) 
 (20) 
 (93) 
(29 180) 
(2 254) 
(32 539) 
 (221) 
(35 013) 

1-5 years  > 5 years 
(31 978) 
– 
– 
 (640) 
(32 618) 
(34 158) 
– 
 (702) 
(34 860) 

(19 312) 
– 
– 
 (421) 
(19 733) 
(17 363) 
– 
 (533) 
(17 897) 

Financial instruments at fair value through surplus or deficit 

Derivative pay leg 
Derivative receive leg 
Net cash flows at 31.12.2019 
Derivative pay leg 
Derivative receive leg 
Net cash flows at 31.12.2018 

< 1 year 
 (397) 
 395 
 (2) 
 (490) 
 477 
 (14) 

1-5 years  > 5 years 
 (7) 
– 
 (7) 
 (6) 
– 
 (6) 

 (2) 
– 
 (2) 
 (2) 
– 
 (2) 

EUR million 
Total 
(52 564) 
(27 793) 
 (20) 
(1 154) 
(81 531) 
(53 775) 
(32 539) 
(1 456) 
(87 770) 

EUR million 
Total 
 (406) 
 395 
 (10) 
 (498) 
 477 
 (21) 

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. 

54 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

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.  

55 

 
Annual accounts of the European Commission 2019 

8. 

EVENTS AFTER THE BALANCE SHEET DATE 

The annual accounts and related notes were prepared using the most recently available information and 
this is reflected in the information presented above. At the date of signature of these accounts two key 
material matters are disclosed below, the departure of the United Kingdom from the European Union and 
the EU reaction to the coronavirus outbreak. No further 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. 

Coronavirus disease 2019 (COVID-19) 

During the first half of 2020, the coronavirus outbreak has had huge global impacts. As a non-adjusting 
event,  the  outbreak  of  the  coronavirus  does  not  require  any  adjustments  to  the  figures  reported.  For 
subsequent reporting periods, the implementation of the immediate response initiatives proposed by the 
Commission  (including  the  reactivation  of  the  Emergency  Support  Instrument  (ESI)  and  further 
reinforcement  of  the  Union  Civil  Protection  Mechanism  (UCPM/rescEU),  the  Coronavirus  Response 
Investment  Initiative  (CRII  and  CRII+)  and  the  support  to  mitigate  Unemployment  Risks  in  an 
Emergency  (SURE)  following  the  COVID-19  outbreak)  will  affect  the  recognition,  measurement  or 
reclassification of some assets and liabilities in the financial statements:  

  Activation  of  the  Emergency  Support  Instrument  (ESI)  and  further  reinforcement  of  the  Union 

Civil Protection Mechanism (UCPM/rescEU): 

Given the depth of the crisis following the COVID-19 outbreak as well as the extent and nature of 
the  needs  requiring  support  from  the  EU  budget,  the  EU  reactivated  the  ESI  instrument.  This 
instrument,  originally  established  in  March  2016  to  address  the  emergency  situation  which  had 
arisen following the massive influx of refugees in Greece (see Council Regulation (EU) 2016/369 
of 15 March 2016), has been reactivated for a period of 3 years (2020-22) to finance expenditure 
necessary to address the COVID‐19 pandemic for the period 1 February 2020 to 31 January 2022 
(see  Council  regulation  (EU)  2020/521  of  14  April  2020).  To  further  this  objective,  the  2020 
budget was amended to include EUR 2.7 billion in commitment appropriations and EUR 1.4 billion 
in payment appropriations (see Definitive Adoption (EU, Euratom) 2020/537 of Amending budget 
No  2  of  the  European  Union  for  the  financial  year  2020  of  17  April  2020).  The  reactivation  will 
allow  the  Union  to  deploy  measures  preventing  and  mitigating  severe  consequences  in  one  or 
more Member States and to address in a coordinated manner the needs related to the COVID-19 
disaster, by complementing any assistance provided under other EU instruments. The instrument 
is  centrally  managed  by  the  Commission  and  mainly  focuses  on  direct  procurement  and  grants, 
whilst  in  certain  cases  actions  will  be  implemented  through  partners  such  as  international 
organisations. 

As  a  complementary  measure  to  the  ESI,  the  Union  Civil  Protection  Mechanism/rescEU  was 
reinforced  to  allow  wider  stock-piling  and  coordination  of  essential  resource  distribution  across 
Europe  (see  Commission  Implementing  Decision  (EU)  2019/570,  as  amended  by  Commission 
Implementing Decision 2020/414 of 19 March 2020 and Commission Implementing Decision (EU) 
2020/452 of 26 March 2020). To this purpose the 2020 budget was amended to include a further 
EUR 0.3 billion in commitment appropriations and EUR 0.2 billion in payment appropriations. The 
reinforcement of the UCPM/rescEU will support Member States in purchasing some of the needed 
equipment (including therapeutics, medical equipment, Personal Protective Equipment, laboratory 
supplies),  thus  increasing  the  volume  as  well  as  complementing  and  widening  the  scope  of 
priority items purchased through the joint procurement under the Joint Procurement Agreement, 
a  coordinated  approach  giving  Member  States  a  strong  position  when  negotiating  with  the 
industry on availability and price of medical products. The rescEU direct grants will provide 100 % 
financing  from  the  EU  budget,  which  includes  full  financing  for  development  of  these  capacities 
and full financing of deployment of equipment. The equipment purchased will be hosted by one or 
more  Member  States,  while  decision  making  is  organised  at  EU  level,  providing  emergency 
supplies  over  and  beyond  national  stocks.  It  will  be  available  to  all  Member  States  and  will  be 
used in case of insufficient national availability. 

  Coronavirus Response Investment Initiative (CRII and CRIIplus):  

CRII,  implemented  by  Regulation  2020/460  of  the  European  Parliament  and  the  Council  of  30 
March  2020,  introduced  specific  measures  to  mobilise  investments  in  the  healthcare  systems  of 
Member States and in other sectors of their economies in response to the COVID-19 outbreak by 
providing  immediate  liquidity  to  accelerate  up  to  EUR  37  billion  of  European  public  investment, 

56 

 
Annual accounts of the European Commission 2019 

introducing flexibility in applying EU spending rules and extending the scope of the EU Solidarity 
Fund. CRIIplus, implemented by Regulation 2020/558 of the European Parliament and the Council 
of 23 April 2020, introduced further measures to provide exceptional flexibility for the use of the 
European Structural and Investments Funds. The 2019 balance sheet includes EUR 6.8 billion as 
current pre-financing since these amounts were originally intended to be recovered during 2020. 
However, as a consequence of the CRII, the amounts will now remain with the Member States so 
as to be used to accelerate investments related to the COVID-19 outbreak. As the CRII foresees 
the clearance or recovery of pre-financing at closure, and eligibility periods may end in 2022, this 
EUR  6.8  billion  of  current  pre-financing  will  likely  all  be  reclassified,  in  conformity  with  the 
accounting rules, to non-current in the 2020 financial statements.  

 

European  instrument  for  temporary  Support  to  mitigate  Unemployment  Risks  in  an  Emergency 
(SURE) following the COVID-19 outbreak: 

As part of its emergency support package to tackle the economic impact of the COVID-19 crisis, 
the  EU  adopted  on  19  May  2020  Council  Regulation  (EU)  2020/672  establishing  the  SURE 
instrument to help workers keep their jobs during the crisis. SURE is a temporary scheme which 
can  provide  up  to  EUR  100  billion  of  financial  assistance  (loans  under  favourable  terms)  to 
Member States. The instrument enables Member States to request EU financial assistance to help 
finance the sudden and severe increases of national public expenditure, as from 1 February 2020, 
related  to  national  short-time  work  schemes  and  similar  measures,  including  for  self-employed 
persons,  or  to  some  health-related  measures,  in  particular  at the  work  place in  response  to  the 
crisis.  To  enable  the  EU  to  provide  financial  assistance  under  SURE,  the  Commission  shall  be 
empowered to borrow on the capital markets or with financial institutions on behalf of the EU to a 
maximum  amount  of  EUR  100  billion.  SURE  loans  will  be  backed  by  the  EU  budget  and 
guarantees  provided  by  Member  States  according  to  their  share  in  the  EU's  GNI.  The  total 
amount of guarantees will be EUR 25 billion and the instrument will become active only when all 
guarantees have been provided. The instrument is limited until 31 December 2022. 

  Next Generation EU: 

Furthermore, on 27 May 2020 President von der Leyen presented a new proposal for the EU long-
term  budget (multiannual  financial  framework)  2021-2027  and  sectoral programmes  boosted  by 
‘Next  Generation  EU’2,  an  emergency  temporary  recovery  instrument,  to  help  repair  the 
immediate  economic  and  social  damage  brought  about  by  the  coronavirus  pandemic,  kickstart 
the  recovery  and  prepare  for  a  better  future  for  the  next  generation.  This  proposal  is  currently 
being  discussed  with  Member  States  and  the  European  Parliament.  Should  an  agreement  be 
reached  based  on  this  proposal,  many  EU  budget  programmes  would  be  topped-up  by  funds 
raised  through  borrowings  by  the  EU.  Given  the  size  of  the  proposed  amounts,  it  would  have  a 
significant  impact  on  the  content  of  future  EU  balance  sheets;  the  specific  impact  can  only  be 
assessed  once  the  final  proposal  has  been  approved  by  the  budget  authority  and  its 
implementation starts. 

Departure of United Kingdom from the European Union 

On 1 February 2020 the United Kingdom ceased to be a Member State of the European Union. Following 
the conclusion of the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern 
Ireland  from  the  European  Union  and  the  European  Atomic  Energy  Community  (the  ‘Withdrawal 
Agreement’) between the two parties, the United Kingdom committed to pay all its obligations under the 
current MFF and previous financial perspectives following from its membership of the Union.  

At  the  date  of  signature  of  these  accounts,  and  based  on  the  Withdrawal  Agreement  concluded  and 
already in operation, there is no financial impact to be reported in these accounts. 

2 https://ec.europa.eu/info/strategy/eu-budget/eu-long-term-budget/2021-2027_en 

57 

 
 
                                                 
Annual accounts of the European Commission 2019 

EUROPEAN COMMISSION 
FINANCIAL YEAR 2019 

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.

58 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

CONTENTS 

EU BUDGET RESULT ......................................................................................... 61 

STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS ........................ 62 

1.

2.

IMPLEMENTATION OF EC BUDGET REVENUE ............................................... 65 

IMPLEMENTATION OF EC BUDGET EXPENDITURE ........................................ 66 

2.1.  MFF: BREAKDOWN & CHANGES IN COMMITMENT & PAYMENT 

APPROPRIATIONS .............................................................................. 66 

2.2.  MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS ................... 67 

2.3.  MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ......................... 68 

2.4.  MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) .................... 69 

2.5.  MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN ....................... 70 

2.6. 

2.7. 

2.8. 

2.9. 

POLICY AREA: BREAKDOWN AND CHANGES IN COMMITMENT 
AND PAYMENT APPROPRIATIONS ......................................................... 71 

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

POLICY AREA: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ............ 75 

POLICY AREA: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) ....... 77 

2.10.  POLICY AREA: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN .......... 79 

RECONCILIATION OF ECONOMIC RESULT WITH BUDGET RESULT .......................... 81 

59 

 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

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 (B)-(A) 

Unused appropriations at the end of current year (A) 

Unused appropriations at the end of previous year (B) 

Exchange rate differences for the year 

Budget result 

EUR million 

2019 

2018 

163 918 

159 318 

(157 428) 

(154 833) 

(1 615) 

 75 

(1 736) 

9 144 

7 408 

 4 

3 217 

(1 675) 

 106 
(1 114) 

7 408 

6 295 

 (1) 

1 802 

60 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

STATEMENT OF COMPARISON OF BUDGET AND ACTUAL 
AMOUNTS 

BUDGET REVENUE 

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 

146 305 

144 795 

147 056 

144 766 

– 

– 

 (1) 

 (1) 

21 471 

21 471 

23 656 

21 365 

17 739 

17 739 

17 775 

17 775 

107 095 

105 585 

105 700 

105 700 

   15 - Correction of budgetary imbalances 

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

3  Surpluses, balances and adjustments 

– 

– 

– 

4  Miscellaneous community taxes, levies and duties 

1 231 

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 

 25 

 130 

 115 

 3 

 15 

– 

– 

1 803 

1 231 

 (81) 

 (81) 

 7 

1 811 

1 212 

 7 

1 805 

1 203 

 25 

 285 

 264 

 130 

14 112 

12 568 

 115 

18 575 

2 625 

 3 

 15 

 3 

 13 

 3 

 7 

147 824 

148 117 

183 069 

163 240 

61 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

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

MFF Heading 

Initial adopted 
budget 

Final adopted 
budget 

1  Smart and inclusive growth 

80 527 

80 627 

    1a: Competitiveness for growth and jobs 

23 335 

23 435 

    1b: Economic, social and territorial cohesion 

57 192 

57 192 

2  Sustainable growth: natural resources 

59 642 

59 642 

Total 
appropriations 
available 

EUR million 

Commitments 
made 

92 794 

27 826 

64 969 

62 846 

90 536 

25 782 

64 754 

60 600 

    of which: Market related expenditure and 
direct payments 

43 192 

43 192 

44 806 

43 962 

3  Security and citizenship 

3 787 

3 787 

4 065 

3 874 

4  Global Europe 

5  Administration 

6  Compensations 

8 

Negative reserve and deficit carried over from 
the previous financial year  

9  Special Instruments 

  Total 

11 319 

11 625 

13 454 

13 111 

5 828 

5 828 

6 226 

6 000 

– 

– 

– 

– 

– 

– 

– 

– 

 577 

 565 

 618 

 295 

161 680 

162 074 

180 004 

174 416 

62 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

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 

67 557 

67 823 

82 553 

75 535 

    1a: Competitiveness for growth and jobs 

20 522 

20 261 

26 044 

21 748 

    1b: Economic, social and territorial cohesion 

47 035 

47 561 

56 510 

53 787 

2  Sustainable growth: natural resources 

57 400 

57 837 

61 252 

59 521 

    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  

43 116 

43 113 

44 933 

43 885 

3 527 

9 358 

5 829 

– 

– 

3 291 

8 953 

5 827 

– 

– 

3 575 

3 256 

10 933 

10 108 

6 588 

6 004 

– 

– 

– 

– 

9  Special Instruments 

 412 

 647 

 671 

 295 

Total 

144 083 

144 377 

165 573 

154 719 

63 

 
 
 
 
 
 
 
 
 
 
 
  
 
1.

  IMPLEMENTATION OF EC BUDGET REVENUE 

Annual accounts of the European Commission 2019 

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 

146 305 

144 795 

147 013 

 44 

147 056 

144 754 

 12 

144 766 

100 % 

2 291 

3 

4 

5 

6 

Surpluses, balances and 
adjustments 

Miscellaneous community taxes, 
levies and duties 

Revenue accruing from the 
administrative operation of the 
institution 

Contributions and refunds in 
connection with union agreements 
and programmes 

– 

1 803 

1 811 

– 

1 811 

1 805 

– 

1 805 

100 % 

1 231 

1 231 

1 203 

 10 

1 212 

1 193 

 10 

1 203 

98 % 

 7 

 9 

 25 

 25 

 272 

 13 

 285 

 256 

 8 

 264 

1056 % 

 21 

 130 

 130 

13 557 

 555 

14 112 

12 273 

 294 

12 568 

9667 % 

1 545 

7  Default interest and fines 

 115 

 115 

5 456 

13 119 

18 575 

2 355 

 271 

2 625 

2283 % 

15 949 

8  Borrowing and lending operations 

9  Miscellaneous revenue 

 3 

 15 

 3 

 15 

 3 

 6 

– 

 7 

 3 

 13 

 3 

 6 

– 

 1 

 3 

 7 

110 % 

43 % 

– 

 7 

  Total 

147 824  148 117  169 322  13 747 

183 069 

162 644 

 596 

163 240 

110 % 

19 829 

64 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
2.

  IMPLEMENTATION OF EC BUDGET EXPENDITURE  

Annual accounts of the European Commission 2019 

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 

80 527 

 100 

80 627 

 0 

12 166 

92 794 

67 557 

 266 

67 823 

 131 

14 600 

82 553 

    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 

23 335 

 100 

23 435 

 0 

4 390 

27 826 

20 522 

 (260) 

20 261 

 118 

5 664 

26 044 

57 192 

– 

57 192 

– 

7 777 

64 969 

47 035 

 526 

47 561 

 13 

8 935 

56 510 

59 642 

 (0) 

59 642 

 460 

2 745 

62 846 

57 400 

 437 

57 837 

 672 

2 743 

61 252 

43 192 

– 

43 192 

 460 

1 155 

44 806 

43 116 

 (3) 

43 113 

 665 

1 155 

44 933 

3  Security and citizenship 

3 787 

 (0) 

3 787 

– 

 279 

4 065 

3 527 

 (237) 

3 291 

11 319 

 306 

11 625 

 34 

1 795 

13 454 

9 358 

 (406) 

8 953 

5 828 

 0 

5 828 

 1 

 397 

6 226 

5 829 

 (2) 

5 827 

 362 

 399 

6 588 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 9 

 64 

 276 

3 575 

1 916 

10 933 

4  Global Europe 

5  Administration 

6  Compensations 

8 

Negative reserve and deficit 
carried over from the previous 
financial year  

9  Special Instruments 

 577 

 (12) 

 565 

 30 

 24 

 618 

 412 

 236 

 647 

 0 

 24 

 671 

Total 

161 680 

 394  162 074 

 525  17 405  180 004  144 083 

 294  144 377 

1 238 

19 958 

165 573 

65 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.2.  MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Commission 2019 

MFF Heading 

Total 
appropr. 
available 

Commitments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriat. carried over 
to 2020 
carry-
overs by 
decision 

assigned 
revenue 

Total 

EUR million 

Appropriations lapsing 

from final 
adopted 
budget 

from 
carry- 
overs 

from 
assigned 
revenue 

Total 

13=10+ 
11+12 

– 

– 

– 

 97 

 1 

 149 

 28 

 96 

 121 

1 

2 

3 

4 

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

7 

8 

9=7+8 

10 

11 

12 

1  Smart and inclusive growth 

92 794 

80 540 

27 826 

23 406 

 0 

 0 

9 996 

90 536  98 % 

2 074 

 36 

2 110 

2 376 

25 782  93 % 

2 013 

 3 

2 016 

 52 

 27 

    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 

64 969 

57 134 

– 

7 620 

64 754  100 % 

 60 

 33 

 93 

 25 

62 846 

59 161 

 438 

1 001 

60 600  96 % 

1 330 

 467 

1 797 

 14 

 21 

 414 

 449 

44 806 

42 718 

 438 

 807 

43 962  98 % 

 348 

 467 

 815 

 8 

 21 

3  Security and citizenship 

4 065 

3 737 

– 

 137 

3 874  95 % 

4  Global Europe 

13 454 

11 622 

 34 

1 454 

13 111  97 % 

5  Administration 

6 226 

5 764 

6  Compensations 

8 

Negative reserve and deficit 
carried over from the 
previous financial year  

– 

– 

– 

– 

9  Special Instruments 

 618 

 295 

 1 

– 

– 

– 

 235 

6 000  96 % 

– 

– 

0 % 

0 % 

– 

– 

– 

 142 

 340 

 161 

– 

– 

– 

 1 

– 

– 

– 

 142 

 341 

 161 

– 

– 

 50 

 2 

 63 

– 

– 

– 

– 

 0 

– 

– 

 295  48 % 

 8 

 94 

 102 

 175 

 30 

 16 

Total 

180 004  161 120 

 473 

12 823  174 416  97 % 

4 055 

 598 

4 653 

 356 

 51 

 527 

66 

– 

 0 

 0 

 0 

– 

– 

 29 

 50 

 2 

 64 

– 

– 

 221 

 934 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

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 
2020 

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 
Sustainable growth: 
natural resources 

2 

    of which: Market 
related expenditure and 
direct payments 

82 553 

67 637 

 113 

7 785 

75 535 

91 % 

 151 

 3 

6 813 

6 967 

 32 

 18 

26 044 

20 090 

 102 

1 555 

21 748 

84 % 

 138 

 3 

4 108 

4 249 

 30 

 16 

56 510 

47 547 

 10 

6 230 

53 787 

95 % 

 13 

– 

2 705 

2 718 

61 252 

57 163 

 637 

1 721 

59 521 

97 % 

 198 

 467 

1 023 

1 687 

 2 

 9 

 2 

 35 

44 933 

42 449 

 631 

 806 

43 885 

98 % 

 190 

 467 

 349 

1 006 

 7 

 34 

3  Security and citizenship 

3 575 

3 153 

 7 

 96 

3 256 

91 % 

10 933 

8 908 

 60 

1 140 

10 108 

92 % 

6 588 

5 478 

 335 

 191 

6 004 

91 % 

 285 

 9 

 39 

4  Global Europe 

5  Administration 

6  Compensations 

8 

Negative reserve and 
deficit carried over from 
the previous financial 
year  

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 % 

– 

– 

0 % 

 0 

 295 

44 % 

 1 

– 

– 

 0 

– 

– 

– 

 180 

 772 

 206 

– 

– 

 188 

 811 

 492 

– 

– 

 129 

 6 

 64 

– 

– 

 2 

 4 

 27 

– 

– 

 8 

 9 

 352 

 0 

9  Special Instruments 

 671 

 295 

 0 

  Total 

165 573  142 633  1 152  10 934  154 719  93 % 

 682 

 470 

9 001  10 154 

 592 

 86 

67 

 1 

 1 

 0 

– 

– 

 0 

 4 

 1 

– 

– 

 16 

 22 

 52 

 48 

 4 

 44 

 42 

 131 

 14 

 92 

– 

– 

 368 

 700 

 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.4.  MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) 

Annual accounts of the European Commission 2019 

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 

206 991 

(1 360) 

(66 413) 

139 217 

90 536 

(9 122) 

37 006 

 (738) 

(13 367) 

22 901 

25 782 

(8 380) 

EUR million 

Total 
commitm. 
outstanding at 
end of the 
year 

8=5+6+7 

9=4+8 

 (4) 

 (4) 

81 410 

17 397 

220 627 

40 298 

    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 

169 985 

 (622) 

(53 046) 

116 317 

64 754 

 (742) 

 (0) 

64 012 

180 329 

40 047 

 (253) 

(15 133) 

24 661 

60 600 

(44 387) 

 (0) 

16 213 

40 874 

 359 

5 834 

27 352 

 374 

– 

– 

 0 

 (6) 

 (235) 

 117 

43 962 

(43 650) 

 (269) 

(1 934) 

3 632 

3 874 

(1 323) 

(1 200) 

(6 918) 

19 234 

13 111 

(3 190) 

 (28) 

 (344) 

– 

– 

– 

– 

 (0) 

 (0) 

 3 

– 

– 

– 

6 000 

(5 660) 

– 

– 

– 

– 

 295 

 (295) 

– 

– 

 (0) 

 (1) 

– 

– 

– 

 313 

2 551 

9 920 

 339 

– 

– 

 1 

 430 

6 183 

29 154 

 342 

– 

– 

 1 

Total 

280 599 

(3 109)  (90 742) 

186 747  174 416  (63 977) 

 (5) 

110 434 

297 181 

68 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.5.  MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN 

Annual accounts of the European Commission 2019 

MFF Heading 

<2013 

2013 

2014 

2015 

2016 

2017 

2018 

2019 

Total 

EUR million 

1  Smart and inclusive growth 

1 428 

3 640 

2 139 

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 

 68 

 33 

 909 

– 

– 

– 

– 

 130 

 18 

 958 

– 

– 

– 

– 

 285 

 20 

4 683 

1 316 

 53 

1 010 

1 851 

 0 

– 

– 

– 

– 

– 

– 

– 

12 476 

45 924 

68 924 

81 414 

220 627 

2 685 

 433 

3 253 

 0 

– 

– 

– 

7 603 

1 223 

4 973 

 1 

– 

– 

– 

12 575 

16 213 

40 874 

1 851 

6 231 

 2 

– 

– 

 0 

2 552 

9 970 

 339 

– 

– 

 1 

6 183 

29 154 

 342 

– 

– 

 1 

2 438 

4 746 

3 453 

7 904 

18 846 

59 723 

89 583 

110 488 

297 181 

The set up of the new Commission involved an internal re-organisation of services. Re-allocating the related transactions resulted in a shift of outstanding amount between years. 
The overall amount of outstanding commitments remains unchanged. 

69 

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

APPROPRIATIONS 

Annual accounts of the European Commission 2019 

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 

 336 

 (26) 

 310 

2 796 

 111 

 0 

 1 

2 796 

 113 

14 753 

 (3) 

14 751 

– 

– 

 1 

– 

 462 

 269 

 773 

1 204 

 (16) 

1 188 

3 065 

2 473 

 (49) 

2 424 

 6 

 120 

 111 

 1 

 113 

1 881 

16 631 

11 910 

 527 

12 437 

 32 

 15 

 14 

 11 

 763 

 466 

 6 

1 982 

2 905 

 132 

2 562 

15 010 

58 407 

 (3) 

58 404 

 460 

2 633 

61 496 

56 641 

 363 

57 004 

 673 

2 649 

60 326 

4 808 

 525 

7 405 

2 430 

 440 

1 028 

 (8) 

 (0) 

 89 

 3 

– 

4 800 

 524 

7 494 

2 433 

 440 

 117 

1 145 

 119 

 1 

 119 

– 

– 

– 

– 

– 

– 

– 

 173 

 16 

4 973 

2 510 

 540 

 370 

 92 

 15 

2 601 

 385 

1 665 

9 160 

6 737 

 (112) 

6 625 

 415 

 597 

 220 

2 848 

2 134 

 (155) 

1 979 

1 037 

1 365 

 428 

 661 

– 

 189 

 428 

 849 

 5 

 4 

 33 

 13 

 47 

 3 

 119 

 15 

2 429 

 550 

 540 

 220 

2 725 

 404 

9 086 

2 541 

1 015 

1 072 

 5 

 124 

 120 

 (1) 

 119 

 4 

 5 

 128 

Policy area 

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

02 

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 

13  Regional and urban policy 

41 290 

 268 

41 559 

 30 

6 030 

47 618 

34 799 

 196 

34 994 

14  Taxation and customs union 

15  Education and culture 

16  Communication 

17  Health and food safety 

 177 

4 540 

 216 

 617 

 (0) 

 21 

 (1) 

 (1) 

 177 

4 561 

 215 

 616 

18  Migration and home affairs 

2 271 

 549 

2 821 

– 

 0 

– 

– 

– 

 13 

 699 

 12 

 48 

 191 

 176 

5 260 

4 052 

 228 

 664 

 213 

 561 

 (0) 

 75 

 (3) 

 (1) 

 176 

4 127 

 210 

 561 

 253 

3 073 

2 576 

 (188) 

2 388 

 13 

 6 

 21 

 15 

 10 

 8 

6 506 

41 512 

 13 

 944 

 12 

 49 

 271 

 195 

5 092 

 237 

 620 

2 667 

70 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 2019 

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 

 869 

 116 

3 717 

 (13) 

 (1) 

 14 

 856 

 115 

3 730 

5 072 

 60 

5 133 

– 

– 

– 

– 

 57 

 3 

 913 

 118 

 722 

 115 

 24 

 (1) 

 746 

 114 

 3 

 4 

 63 

 3 

 812 

 121 

 287 

4 017 

3 301 

 (221) 

3 081 

 25 

 332 

3 438 

 672 

5 805 

3 770 

 (267) 

3 502 

 11 

 490 

4 004 

1 764 

 340 

2 104 

 34 

 431 

2 568 

1 705 

 136 

1 841 

 83 

 260 

1 143 

 74 

 20 

 160 

2 008 

 403 

2 006 

 265 

 165 

– 

 1 

 1 

 3 

 (0) 

 (1) 

 83 

 261 

1 145 

 77 

 20 

 159 

– 

2 008 

 (3) 

 (0) 

 0 

 (0) 

 401 

2 006 

 265 

 165 

 269 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 9 

 1 

 16 

 0 

 73 

 225 

 7 

 1 

– 

1 285 

(1 016) 

 1 

 12 

 84 

 273 

 83 

 260 

 213 

1 357 

1 142 

 86 

 21 

 74 

 20 

 175 

 144 

– 

 0 

 2 

 3 

 (0) 

 (4) 

 83 

 260 

 20 

 77 

 20 

 140 

 8 

 7 

 15 

 1 

 6 

– 

2 008 

2 008 

– 

2 008 

 474 

 403 

 (3) 

 401 

 25 

2 231 

1 628 

 (112) 

1 516 

 272 

 166 

 269 

 247 

 108 

 678 

 11 

 (9) 

 (199) 

 258 

 99 

 479 

 6 

 5 

 4 

– 

 376 

2 226 

 1 

 12 

 91 

 292 

 9 

 1 

 27 

 0 

 73 

 230 

 7 

 1 

– 

 101 

 22 

 173 

2 008 

 499 

1 752 

 270 

 104 

 479 

1 144 

 173 

 214 

1 531 

161 680 

 394  162 074 

 525  17 405  180 004  144 083 

 294  144 377  1 238 

19 958 

165 573 

71 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.7.  POLICY AREA: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Commission 2019 

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 2020 

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 

 773 

 308 

3 065 

2 793 

03  Competition 

 120 

 111 

– 

– 

 1 

 393 

 701 

91 % 

 169 

2 962 

97 % 

 3 

 115 

96 % 

16 631 

14 696 

– 

1 776 

16 472 

99 % 

 69 

 99 

 3 

 43 

– 

– 

– 

 32 

 69 

 99 

 3 

 75 

61 496 

57 926 

 438 

 877 

59 242 

96 % 

1 342 

 467 

1 809 

04 

05 

Employment, social affairs 
and inclusion 
Agriculture and rural 
development 

 3 

 3 

 2 

 23 

 11 

 2 

 1 

 0 

 6 

 0 

 3 

– 

– 

 0 

– 

 0 

 1 

 0 

 62 

 21 

 413 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

 0 

 0 

 0 

 1 

 0 

 81 

 4 

 728 

 179 

 487 

 76 

– 

– 

– 

– 

 3 

– 

– 

 2 

 20 

 50 

 124 

– 

– 

– 

– 

– 

 4 

 264 

 5 

 20 

 129 

 7 

 1 

 1 

 1 

 4 

 1 

 30 

 50 

– 

– 

– 

– 

– 

 0 

 0 

 0 

 0 

 0 

Total 

13=10+ 
11+12 

 3 

 4 

 2 

 85 

 446 

 2 

 1 

 0 

 6 

 0 

 4 

 20 

 86 

 1 

 1 

 1 

 4 

 1 

06  Mobility and transport 

4 973 

4 797 

07  Environment 

 540 

 523 

08  Research and innovation 

9 160 

7 494 

09 

Communications networks, 
content and technology 

2 848 

2 427 

10  Direct research 

1 037 

 437 

11 

12 

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

1 365 

1 142 

 124 

 100 

13  Regional and urban policy 

47 618 

41 502 

14 

Taxation and customs 
union 

 191 

 176 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 92 

 12 

4 889 

98 % 

 536 

99 % 

 81 

 4 

 938 

8 432 

92 % 

 728 

 236 

2 663 

93 % 

 179 

 113 

 550 

53 % 

 484 

 143 

1 285 

94 % 

 76 

 3 

 103 

83 % 

 2 

5 906 

47 408 

100 % 

 9 

 185 

97 % 

 74 

 4 

15  Education and culture 

5 260 

4 560 

 0 

 435 

4 995 

95 % 

 264 

16  Communication 

 228 

 214 

17  Health and food safety 

 664 

 612 

18  Migration and home affairs 

3 073 

2 820 

– 

– 

– 

 7 

 28 

 221 

97 % 

 640 

96 % 

 5 

 20 

 124 

2 944 

96 % 

 129 

72 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

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 2020 

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 

 26 

 1 

 83 

 66 

 15 

 1 

 5 

19  Foreign policy instruments 

20  Trade 

21 

22 

23 

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

 913 

 118 

 856 

 114 

4 017 

3 726 

5 805 

5 131 

– 

– 

– 

– 

 31 

 2 

 887 

97 % 

 115 

97 % 

 204 

3 930 

98 % 

 606 

5 737 

99 % 

2 568 

2 103 

 34 

 416 

2 553 

99 % 

24  Fight against fraud 

 84 

 83 

25 

26 

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

27  Budget 

28  Audit 

29  Statistics 

30 

Pensions and related 
expenditure 

 273 

 254 

1 357 

1 141 

 86 

 21 

 76 

 19 

 175 

 157 

2 008 

1 996 

31  Language services 

 474 

 395 

32  Energy 

2 231 

2 004 

33  Justice and consumers 

 272 

 263 

34  Climate action 

40  Reserves 

Total 

 166 

 165 

 269 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 7 

 83 

99 % 

 261 

96 % 

 129 

1 270 

94 % 

 84 

 6 

 1 

 6 

 0 

 82 

96 % 

 20 

96 % 

 163 

93 % 

1 996 

99 % 

 45 

 440 

93 % 

 3 

 1 

 10 

 0 

 28 

 100 

2 104 

94 % 

 125 

 4 

 1 

– 

 267 

98 % 

 165 

99 % 

– 

0 % 

 3 

 1 

– 

– 

– 

 1 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 26 

 1 

 84 

 66 

 15 

 1 

 5 

 84 

 3 

 1 

 10 

 0 

 28 

 125 

 3 

 1 

 0 

 2 

 3 

 2 

 0 

 0 

 7 

 4 

 1 

 0 

 2 

 12 

 6 

 2 

 2 

 0 

 46 

 46 

 223 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

– 

 0 

 0 

 0 

 0 

– 

180 004  161 120 

 473  12 823  174 416 

97 % 

4 055 

 598 

4 653 

 356 

 51 

 527 

73 

Total 

13=10+ 
11+12 

 0 

 2 

 3 

 2 

 1 

 0 

 7 

 4 

 1 

 0 

 2 

 12 

 6 

 2 

 2 

 0 

 223 

 934 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
2.8.  POLICY AREA: IMPLEMENTATION OF PAYMENT APPROPRIATIONS 

Annual accounts of the European Commission 2019 

Policy area 

Total 
appropr. 
available 

Payments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over to 
2020 

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 

1 982 

1 181 

 30 

 572 

1 783  90 % 

 4 

– 

 191 

 194 

 3 

 2 

2 905 

2 405 

 13 

 147 

2 564  88 % 

 16 

03  Competition 

 132 

 99 

 13 

 2 

 114  86 % 

15 010 

12 422 

 7 

2 355 

14 784  99 % 

60 326 

56 328 

 638 

1 533 

58 500  97 % 

 198 

 467 

1 116 

1 780 

 11 

 35 

06  Mobility and transport 

2 725 

2 592 

 404 

 380 

 4 

 4 

 29 

 13 

2 625  96 % 

 396  98 % 

01 

02 

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

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 

9 086 

6 588 

 30 

 489 

7 107  78 % 

2 541 

1 965 

 10 

 111 

2 086  82 % 

1 015 

 363 

 42 

 104 

 509  50 % 

1 072 

 846 

 2 

 198 

1 046  98 % 

 128 

 96 

 4 

 3 

 103  80 % 

41 512 

34 980 

 11 

3 921 

38 912  94 % 

15  Education and culture 

5 092 

4 108 

16  Communication 

 237 

 197 

 195 

 170 

 6 

 17 

 14 

 5 

 181  93 % 

 380 

4 504  88 % 

 6 

 217  91 % 

74 

– 

– 

– 

 319 

 335 

 3 

 2 

 4 

 16 

 191 

 202 

 2 

 4 

 0 

 3 

 12 

 11 

 5 

 4 

 37 

 10 

 62 

 2 

 4 

 11 

 5 

 18 

 12 

– 

– 

– 

– 

 3 

– 

– 

– 

– 

– 

– 

 90 

 2 

 96 

 7 

1 939 

1 976 

 439 

 449 

 436 

 501 

 22 

 25 

 4 

 1 

 0 

 3 

 0 

 1 

 2 

 5 

 20 

2 585 

2 596 

 7 

 12 

 564 

 582 

 6 

 18 

 3 

 1 

 1 

 1 

 1 

 0 

 3 

 3 

 6 

 0 

 0 

 2 

 0 

 4 

 1 

 0 

 0 

 0 

 16 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 5 

 5 

 2 

 23 

 46 

 5 

 1 

 3 

 6 

 6 

 1 

 20 

 5 

 2 

 5 

 2 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

Policy area 

Total 
appropr. 
available 

Payments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over to 
2020 

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 

 620 

 551 

2 667 

2 380 

 812 

 121 

 741 

 110 

 9 

 6 

 3 

 4 

 29 

 80 

 39 

 2 

 588  95 % 

2 466  92 % 

 783  96 % 

 115  95 % 

 8 

 7 

 4 

 3 

3 438 

3 056 

 22 

 172 

3 250  95 % 

 21 

4 004 

3 487 

 10 

 177 

3 674  92 % 

 13 

2 226 

1 833 

 91 

 74 

 8 

 6 

 292 

 234 

 19 

 0 

 6 

 327 

2 168  97 % 

 80  88 % 

 8 

 7 

 259  89 % 

 19 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

 20 

 29 

 191 

 198 

 24 

 2 

 28 

 4 

 156 

 177 

 313 

 326 

 49 

 1 

 6 

 57 

 8 

 25 

1 531 

1 011 

 164 

 101 

1 275  83 % 

 130 

 0 

 113 

 244 

18 

17  Health and food safety 
Migration and home 
affairs 
Foreign policy 
instruments 

19 

20  Trade 

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 

 101 

 22 

 173 

 62 

 19 

 133 

2 008 

1 996 

 14 

 1 

 5 

– 

31  Language services 

 499 

 378 

 23 

32  Energy 

1 752 

1 504 

33  Justice and consumers 

34  Climate action 

40  Reserves 

 270 

 104 

 479 

 251 

 95 

– 

 6 

 4 

 4 

– 

 4 

 1 

 7 

– 

 40 

 79 

 4 

 1 

– 

 80  79 % 

 14 

 20  92 % 

 145  84 % 

1 996  99 % 

 1 

 5 

 0 

 441  89 % 

 17 

1 588  91 % 

 259  96 % 

 99  95 % 

– 

0 % 

 6 

 4 

 4 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 5 

 1 

 20 

 0 

 33 

 19 

 1 

 25 

 0 

 50 

 151 

 157 

 3 

 1 

– 

 8 

 4 

– 

165 573  142 633  1 152  10 934  154 719  93 % 

 682 

 470 

9 001  10 154 

 592 

 86 

 22 

75 

 1 

 1 

 1 

 2 

 4 

 2 

 1 

 2 

 7 

 4 

 1 

 0 

 2 

 12 

 6 

 6 

 3 

 0 

 479 

 1 

 2 

 1 

 0 

 3 

 1 

 0 

 2 

 1 

 9 

 1 

 0 

 1 

– 

 1 

 1 

 1 

 0 

– 

 0 

 0 

 0 

 0 

 4 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

– 

 0 

 0 

 0 

 0 

– 

 3 

 3 

 2 

 2 

 11 

 3 

 1 

 4 

 8 

 13 

 2 

 0 

 3 

 12 

 7 

 7 

 4 

 1 

 479 

 700 

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

Annual accounts of the European Commission 2019 

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 

Cancellation of 
commitm. 
which cannot 
be carried-
over 
7 

Commitm. 
outstanding 
at year-end 

8=5+6+7 

9=4+8 

 (15) 

(1 311) 

1 947 

 701 

 (472) 

– 

 229 

2 176 

EUR million 

Total 
commitm. 
outstanding 
at end of the 
year 

3 273 

2 913 

 13 

44 192 

35 938 

10 281 

1 422 

14 315 

2 646 

 214 

3 302 

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 

12 

11 

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

14 

15  Education and culture 

16  Communication 

17  Health and food safety 

 (21) 

(1 530) 

1 362 

2 962 

(1 034) 

 (0) 

 (12) 

– 

 115 

 (102) 

 (461) 

(14 474) 

29 258 

16 472 

 (311) 

 (45) 

(14 201) 

21 692 

59 242 

(44 299) 

 (93) 

(2 394) 

 (131) 

 (281) 

 (146) 

(5 101) 

7 794 

1 010 

9 068 

4 889 

 (231) 

 536 

 (115) 

8 432 

(2 005) 

 (136) 

 (981) 

1 529 

2 663 

(1 105) 

 (27) 

 (123) 

 64 

 550 

 (386) 

 (76) 

 (834) 

2 392 

1 285 

 (212) 

 15 

 (0) 

 (12) 

 3 

 103 

 (91) 

120 918 

 (287) 

(37 895) 

82 737 

47 408 

(1 017) 

 158 

2 858 

 67 

 473 

 (5) 

 (93) 

 60 

 185 

 (88) 

 (129) 

(1 191) 

1 537 

4 995 

(3 313) 

 (3) 

 (58) 

 (12) 

 (237) 

 6 

 225 

 221 

 640 

 (159) 

 (351) 

76 

 (1) 

– 

 (0) 

 (0) 

 (1) 

– 

 (1) 

 (0) 

 (0) 

 (0) 

– 

 (0) 

 (0) 

 (0) 

 (0) 

– 

1 927 

3 289 

 13 

 13 

16 161 

45 419 

14 943 

4 658 

 421 

6 425 

36 634 

12 451 

1 431 

15 493 

1 558 

3 087 

 164 

1 073 

 228 

3 465 

 12 

 15 

46 391 

129 127 

 97 

1 681 

 62 

 289 

 157 

3 218 

 68 

 514 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

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 

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 

1 

2 

3 

4=1+2+3 

5 

6 

5 143 

1 066 

 24 

9 571 

 (252) 

(1 627) 

3 263 

2 944 

 (839) 

 (63) 

 (395) 

 (1) 

 (16) 

 607 

 8 

 887 

 115 

 (387) 

 (100) 

 (211) 

(2 544) 

6 816 

3 930 

 (706) 

14 472 

 (789) 

(3 065) 

10 618 

5 737 

 (609) 

 977 

 33 

 21 

 217 

 15 

 1 

 122 

– 

 25 

5 302 

 244 

 368 

– 

 (42) 

 (579) 

 (2) 

 (18) 

 355 

 13 

2 553 

(1 588) 

 83 

 (61) 

 (1) 

 (20) 

 0 

 261 

 (239) 

 (10) 

 (194) 

 13 

1 270 

(1 081) 

 (1) 

 (0) 

 (7) 

– 

 (14) 

 (1) 

 (57) 

– 

 (1) 

 (23) 

– 

– 

 57 

– 

– 

 82 

 20 

 163 

 (66) 

 (19) 

 (88) 

1 996 

(1 996) 

 440 

 (418) 

 (137) 

(1 292) 

3 874 

2 104 

 (296) 

 (4) 

 (1) 

– 

 (97) 

 (72) 

– 

 143 

 295 

– 

 267 

 165 

– 

 (162) 

 (28) 

– 

EUR million 

Total 
commitm. 
outstanding 
at end of the 
year 

Commitm. 
outstanding 
at year-end 

8=5+6+7 

9=4+8 

2 105 

 500 

 16 

5 368 

1 107 

 24 

3 224 

10 040 

5 128 

15 746 

 965 

1 320 

 21 

 22 

 189 

 16 

 1 

 75 

– 

 22 

 34 

 22 

 202 

 16 

 1 

 132 

– 

 22 

1 807 

5 681 

 105 

 138 

– 

 248 

 433 

– 

Cancellation of 
commitm. 
which cannot 
be carried-
over 
7 

– 

 (0) 

– 

– 

– 

 (0) 

 (0) 

 (0) 

 (0) 

– 

– 

– 

 (0) 

– 

 (1) 

 (0) 

– 

– 

280 599 

(3 109)  (90 742) 

186 747 

174 416  (63 977) 

 (5) 

110 434 

297 181 

77 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.10.  POLICY AREA: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN 

Annual accounts of the European Commission 2019 

EUR million 

Policy area 

<2013 

2013 

2014 

2015 

2016 

2017 

2018 

2019 

Total 

01  Economic and financial affairs 

02 

Internal market, industry, entrepreneurship and 
SMEs 

03  Competition 

– 

 16 

– 

 129 

 18 

– 

04  Employment, social affairs and inclusion 

 230 

 867 

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 

 0 

 2 

 56 

 186 

 10 

 8 

 12 

– 

 58 

 3 

 43 

 304 

 5 

 8 

 87 

– 

– 

 25 

– 

 179 

 199 

 297 

 58 

 674 

 79 

 4 

 3 

 0 

 0 

 82 

– 

 4 

 130 

– 

 34 

1 781 

 229 

 372 

 719 

1 927 

– 

– 

 13 

2 176 

3 289 

 13 

 748 

2 304 

10 139 

14 792 

16 161 

45 419 

1 160 

2 214 

6 752 

11 309 

14 943 

36 634 

 501 

 132 

 932 

 95 

 3 

 5 

– 

1 747 

 117 

1 581 

 254 

 2 

 342 

– 

2 066 

3 179 

4 658 

12 451 

 168 

 436 

 421 

1 431 

2 166 

3 225 

6 425 

15 493 

 335 

 16 

 748 

1 562 

3 087 

 23 

 164 

 228 

 914 

1 029 

1 073 

3 465 

 1 

 2 

 12 

 15 

13  Regional and urban policy 

 798 

1 987 

 597 

1 910 

5 832 

29 112 

42 502 

46 391 

129 127 

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 

– 

 11 

 0 

 6 

 37 

 4 

– 

 266 

 567 

– 

– 

 13 

– 

 3 

 16 

 8 

– 

 327 

 431 

– 

 0 

 44 

 0 

 7 

 8 

 52 

– 

 372 

 564 

 17 

78 

 0 

 5 

 103 

 171 

 0 

 29 

 8 

 490 

 1 

 59 

 46 

 705 

 5 

 109 

 97 

 157 

1 681 

3 218 

 62 

 289 

 395 

1 147 

1 613 

2 105 

 87 

 1 

 149 

 247 

 3 

 4 

 500 

 16 

 68 

 514 

5 368 

1 107 

 24 

 0 

 11 

 47 

 60 

 0 

 664 

1 041 

1 871 

2 249 

3 251 

10 040 

1 098 

2 059 

2 643 

3 233 

5 151 

15 746 

 15 

 23 

 85 

 216 

 965 

1 320 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

Policy area 

<2013 

2013 

2014 

2015 

2016 

2017 

2018 

2019 

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 

– 

– 

 0 

– 

– 

 1 

– 

 0 

– 

– 

 2 

– 

– 

 2 

– 

 0 

– 

– 

 3 

– 

– 

 4 

– 

 3 

– 

– 

 13 

– 

– 

 6 

 0 

 10 

– 

 (0) 

 39 

– 

– 

 21 

 22 

 34 

 22 

 189 

 202 

 16 

 1 

 75 

– 

 22 

 16 

 1 

 132 

– 

 22 

 220 

 432 

 241 

 295 

 409 

1 069 

1 208 

1 807 

5 681 

 9 

– 

– 

 7 

– 

– 

 7 

 26 

– 

 11 

 30 

– 

 22 

 74 

– 

 35 

 70 

– 

 51 

 96 

– 

 106 

 138 

– 

 248 

 433 

– 

2 438 

4 746 

3 453 

7 904 

18 846 

59 723 

89 583 

110 488 

297 181 

The set up of the new Commission involved an internal re-organisation of services. Re-allocating the related transactions resulted in a shift of outstanding amount between years. 
The overall amount of outstanding commitments remains unchanged. 

79 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2019 

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 

2019 
4 605 

EUR million 
2018 
14 372 

(6 184) 
8 648 
3 341 

8 389 
3 725 
(3 832) 
(10 922) 
(2 927) 

1 238 

3 865 
(3 107) 

(6 212) 
9 326 
(4 015) 

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

1 471 

3 509 
(4 220) 

BUDGET RESULT OF THE YEAR 

6 839 

5 327 

BUDGET RESULT OTHER INSTITUTIONS 

(3 622) 

(3 525) 

BUDGET RESULT OF THE YEAR (EU) 

3 217 

1 802 

80