DRAFT AMENDING BUDGET No 7 TO THE GENERAL BUDGET 2020 Update of revenue (own resources)
Date: 2020-07-06
Institutions: Directorate-General for Budget, European Commission
Subjects: amending budget, budgetary resources, draft budget (EU), financial year, general budget (EU), own resources

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 6.7.2020  COM(2020) 424 final  DRAFT AMENDING BUDGET No 7 TO THE GENERAL BUDGET 2020   Update of revenue (own resources)  
 
 
Having regard to: 

– 

– 

– 

– 

– 

– 

– 

– 

– 

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

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

the general budget of the European Union for the financial year 2020, as adopted on 
27 November 20192, 
amending budget No°1/20203, adopted on 17 April 2020, 
amending budget No°2/20204, adopted on 17 April 2020, 
amending budget No°3/20205, adopted on 17 June 2020, 
amending budget No°4/20206, adopted on 17 June 2020, 
draft amending budget No°5/20207, adopted on 3 June 2020, 
draft amending budget No 6/20208, adopted on 3 June 2020, 

The  European  Commission  hereby  presents  to  the  European  Parliament  and  to  the  Council 
Draft Amending Budget No°7/2020 to the 2020 budget. 

CHANGES  TO  THE  STATEMENT  OF  REVENUE  AND  EXPENDITURE  BY 
SECTION 

The changes to the general statement of revenue and in section III are available on EUR-Lex 
(https://eur-lex.europa.eu/budget/www/index-en.htm). 

1  
2  
3  
4  
5  
6  
7  
8  

OJ L 193, 30.7.2018. 
OJ L 57, 27.2.2020. 
OJ L 126, 21.4.2020. 
OJ L 126, 21.4.2020. 
OJ L XXX, XX.X.2020. 
OJ L XXX, XX.X.2020. 
COM(2020) 421, 3.6.2020. 
COM(2020) 423, 3.6.2020 

1 

 
 
 
 
 
                                                           
TABLE OF CONTENTS 

1. 

INTRODUCTION ....................................................................................................................................................... 3 

2.  UPDATE OF REVENUE............................................................................................................................................ 3 

2.1  OVERALL IMPACT OF DAB 7/2020 ON THE DISTRIBUTION OF TOTAL OWN RESOURCES PAYMENTS BETWEEN 
MEMBER STATES ............................................................................................................................................................... 3 

2.2  REVISION OF THE FORECAST OF TOR, VAT AND GNI BASES ............................................................................... 5 

2.3  2015, 2016, 2017, 2018 AND 2019 UK CORRECTION ............................................................................................... 7 

2.3.1 

2.3.2 

INTRODUCTION ...................................................................................................................................................... 7 

CALCULATION OF THE CORRECTIONS ...................................................................................................................... 7 

ENTRY IN DAB 7/2020 OF THE 1ST UPDATE OF THE 2019 UK CORRECTION, 2ND UPDATE OF THE 2018 UK 

2.3.3 
CORRECTION, 3RD UPDATE OF THE 2017 UK CORRECTION, DEFINITIVE AMOUNTS OF THE 2016 ANS 2015 UK CORRECTIONS . 12 

2.4  EXCHANGE RATE DIFFERENCES IN OWN RESOURCES ........................................................................................... 15 

2.5  FINES AND PENALTY PAYMENTS ............................................................................................................................ 16 

2 

 
 
 
 
EXPLANATORY MEMORANDUM 

1. 

INTRODUCTION 

The purpose of Draft Amending Budget (DAB) No 7 for the year 2020 is to update the revenue side of 
the budget to take account of the latest developments: 

– 

– 

2. 

2.1 

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

to update other revenue such as fines and exchange rate differences. 

UPDATE OF REVENUE 

Overall  impact  of  DAB  7/2020  on  the  distribution  of  total  own  resources  payments  between 
Member States 

Following  the  178th  meeting  of  the  Advisory  Committee  on  Own  Resources  (ACOR),  which  was  held  by 
written  procedure  from  19-25  May  2020,  two  types  of  adjustments  of  the  revenue  side  of  the  budget  are 
required:  

– 

– 

an  update  of  the  estimates  for  Traditional  Own  Resources  (TOR)  as  well  as  for  the  own 
resources based on the Value Added Tax (VAT) and Gross  National  Income (GNI) to  take 
account of more recent economic forecasts, and 

an update of the UK correction.  

These adjustments are presented in sections 2.2 and 2.3 below. 

Moreover, the other revenue are updated to take into account finally cashed fines and penalty payments until 
June 2020 and also the negative exchange rate differences (see sections 2.5 and 2.4 below). 

The overall impact of all the revenue adjustments of this DAB is shown in the summary table below. This table 
also shows the distribution of total own resources payments between Member States: as budgeted in the 2020 
budget, as amended in Draft Amending Budget N°6 (DAB 6/2020)9, and finally in the present DAB. 

9   COM(2020) 423, 3.6.2020. 

3 

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

Budget 2020 

DAB 6/2020  DAB 7/2020 

(1) 

(2) 

(3) 

6 313,9 

 641,7 

2 135,7 

2 904,5 

6 499,9 

 665,6 

2 218,8 

3 029,7 

6 332,3 

659,8 

2 290,7 

3 118,1 

31 032,1 

32 448,8 

32 955,7 

 277,4 

2 599,7 

1 825,0 

 288,2 

2 706,9 

1 901,0 

302,2 

2 652,8 

1 905,6 

12 649,7 

13 149,6 

12 577,5 

23 283,6 

24 261,5 

24 654,5 

 515,6 

 536,8 

531,2 

17 239,5 

17 946,0 

17 751,0 

 216,0 

 318,9 

 512,4 

 397,7 

1 429,0 

 128,9 

8 025,0 

3 536,8 

5 450,1 

2 011,6 

2 057,1 

 522,1 

 926,7 

2 245,5 

3 903,6 

 224,5 

 331,5 

 531,0 

 414,8 

1 484,4 

 134,0 

8 344,8 

3 696,0 

5 656,5 

2 092,8 

2 144,4 

 541,7 

 965,2 

2 341,3 

4 091,9 

226,6 

319,3 

525,5 

452,3 

1 498,4 

131,4 

8 249,6 

3 789,0 

5 782,5 

2 171,8 

2 240,4 

526,5 

937,7 

2 421,9 

4 313,3 

18 537,9 

18 359,7 

17 972,3 

151 637,8 

157 007,3 

157 289,9 

BE 

BG 

CZ 

DK 

DE 

EE 

IE 

EL 

ES 

FR 

HR 

IT 

CY 

LV 

LT 

LU 

HU 

MT 

NL 

AT 

PL 

PT 

RO 

SI 

SK 

FI 

SE 

UK 

EU 

4 

 
 
 
 
 
  
  
 
 
2.2 

Revision of the forecast of TOR, VAT and GNI bases 

According to established practice, the Commission proposes to revise the financing of the budget on the basis 
of more recent economic forecasts10, agreed with the Member States in the ACOR forecast procedure.  

The revision concerns the forecast of TOR to be paid to the budget in 2020 as well as the forecast of the 2020 
VAT and GNI bases. The forecast in the 2020 Budget was established at the 175th ACOR meeting on 24 May 
2019. The revision in the present DAB takes into account the agreed forecasts of the 178th ACOR meeting held 
by  written  procedure  from  19-25  May  2020.  The  use  of  an  updated  forecast  of  own  resources  improves  the 
accuracy of the revenue forecasts and hence of the payments that Member States are asked to make to the EU 
budget during the budgetary year. 

The ACOR projections of VAT and GNI bases are usually determined as a compromise between the 
Commission’s  forecast  and  the  Member  State’s  forecasts.  However,  this  year  all  Member  States 
accepted the Commission’s proposal to use its own forecasts for the VAT and GNI bases for 2020 to 
ensure  equal  treatment  across  Member  States.  The  Commission  spring  2020  economic  forecast  
provides  a  horizontally  consistent  approach,  based  on  a  consistent  set  of  data,  methodology  and 
assumptions for all Member States, which appears particularly important  in the exceptional situation 
of the Covid-19 pandemic. 

The pandemic has drastically changed the outlook for the European economy. The Commission spring 
2020 forecast expects the EU economy to contract by a record 7.5 % this year, followed by a rebound 
of 6.1 % in 2021 – not enough to fully make up for this year’s loss. At the end of the forecast horizon, 
the  EU  economy  would  be  about  3 %  lower  than  the  output  level  projected  by  the  autumn  forecast 
2019. The pandemic will affect all demand components except  government consumption and public 
investment, which play a stabilising role. International trade is expected to collapse unprecedentedly 
and the rebound next year to remain limited due to disruptions in global value chains. 

The worsening economic situation is reflected in the own resources forecast for 2020. Therefore, as compared 
to the forecast agreed in May 2019, the forecast for 2020 has been revised as follows: 

–  Total 2020 net customs duties are now forecast at EUR 18 507,3 million (after deduction of 20 % collection 
costs), which represents a decrease of 16,47 % relative to the forecast of EUR 22 156,9 million included in 
the Budget 2020. The Commission compared the results of the traditional ACOR forecasting method (based 
on the Commission Spring 2020 economic forecast) with the results of the extrapolation method based on 
the  latest  outturn  data  for  collected  customs  duties  (January  –  April  2020).  As  in  the  past  years,  it  was 
agreed  to apply a conservative approach ensuring sound budget management in a context of high economic 
uncertainties  and  potential  disruptions  in  trade  patterns.  The  traditional  forecast  method,  which  takes  into 
account  possible  effects  of  the  pandemic  on  trade,  provides  the  lowest  TOR  revenue.  Therefore,  it  was 
agreed to use it for the revision of the 2020 TOR forecast. 

–  The  total  2020  EU  uncapped  VAT  base  is  now  forecast  at  EUR 6 764 185,3 million,  which  represents  a 
decrease  of  8,30 %  compared  to  the  May  2019  forecast  of  EUR 7 376 556,2 million.  The  total  2020  EU 
capped VAT base11 is forecast at EUR 6 727 739,2 million, which represents a decrease of 8,43 % compared 
to the May 2019 forecast of EUR 7 347 133,9 million. 

–  The  total  2020  EU  GNI  base  is  forecast  at  EUR 15 480 146,9  million,  which  is  a  decrease  of  8,88 % 

compared to the May 2019 forecast of EUR 16 988 025,0 million. 

The exchange rates of 31 December 2019 have been used for converting the forecast VAT and GNI bases in 
national  currency  into  euro  (for the  nine  Member  States that  are not  members  of  the  euro area). This  avoids 
distortions, since this rate is used to convert budgeted own resources payments from euro into national currency 
when the amounts are called in (as stipulated in Article 10a(1) of Council Regulation No 609/2014). 

10   European Commission, 2020, European Economic Forecast spring 2020, European Economy, Institutional Paper 125. 
11   In accordance with Council Decision 2014/335, if the VAT base of a Member State exceeds 50 % of its GNI, then it is 
capped at this 50 %. For DAB 7/2020, six Member States will have their VAT base capped at 50 % of GNI: Croatia, 
Cyprus, Luxembourg, Malta, Poland and Portugal. 

5 

 
 
 
 
                                                           
The revised forecasts of TOR, uncapped VAT bases and GNI bases for 2020, as adopted at the 178th ACOR 
meeting held by written procedure from 19-25 May 2020, are set out in the following table: 

Revised forecasts of TOR, VAT and GNI bases for 2020 (in million EUR) 

Customs 
(80%) 

Uncapped 
VAT bases 

GNI bases 

Capped  
VAT bases12 

BE 

BG 

CZ 

DK 

DE 

EE 

IE 

EL 

ES 

FR 

HR 

IT 

CY 

LV 

LT 

LU 

HU 

MT 

NL 

AT 

PL 

PT 

RO 

SI 

SK 

FI 

SE 

UK 

 1 855,2 

 189 777,7 

 449 226,0 

 189 777,7 

  77,0 

 27 165,8 

 56 874,4 

  257,6 

 92 345,4 

 201 610,8 

 27 165,8 

 92 345,4 

  316,9 

 113 403,4 

 299 768,7 

 113 403,4 

 3 682,9 

1 379 190,9 

3 354 899,6 

1 379 190,9 

  36,4 

 12 711,1 

 26 004,9 

  239,8 

 91 612,0 

 244 502,7 

  227,1 

 68 974,4 

 170 317,2 

 12 711,1 

 91 612,0 

 68 974,4 

 1 145,6 

 525 701,4 

1 139 453,3 

 525 701,4 

 1 492,9 

1 043 797,5 

2 310 950,4 

1 043 797,5 

  29,5 

 33 212,2 

 49 035,0 

 24 517,5 

 1 548,8 

 655 487,7 

1 640 896,9 

 655 487,7 

  25,0 

 15 360,0 

 19 667,9 

  36,4 

 12 075,5 

 28 582,7 

  90,5 

 18 210,5 

 43 691,8 

  17,7 

 30 401,6 

 42 714,0 

  164,9 

 57 027,0 

 133 530,3 

  13,4 

 9 182,8 

 11 568,7 

 9 834,0 

 12 075,5 

 18 210,5 

 21 357,0 

 57 027,0 

 5 784,4 

 2 461,7 

 309 010,0 

 752 515,8 

 309 010,0 

  188,0 

 173 737,6 

 379 655,5 

 173 737,6 

  734,9 

 254 114,4 

 497 588,8 

 248 794,4 

  179,8 

 102 255,7 

 195 586,8 

  164,9 

 81 445,0 

 210 407,0 

  71,0 

 21 884,8 

 45 058,8 

  74,1 

 34 104,4 

 87 990,5 

 97 793,4 

 81 445,0 

 21 884,8 

 34 104,4 

  136,7 

 101 842,5 

 228 223,7 

 101 842,5 

  436,1 

 204 408,8 

 466 486,2 

 204 408,8 

 2 802,5 

1 105 745,2 

2 393 338,5 

1 105 745,2 

EU 28 

 18 507,3 

6 764 185,3 

15 480 146,9 

6 727 739,2 

12   The amounts highlighted in grey result from the capped VAT bases, as explained in footnote 11 above. 

6 

 
 
 
 
  
                                                           
2.3 

2015, 2016, 2017, 2018 and 2019 UK correction 

2.3.1 

Introduction 

The correction of budgetary imbalances in favour of the United Kingdom (UK correction), to be budgeted in 
the present DAB, concerns years: 2015, 2016, 2017, 2018 and 2019. 

corrections 

and  2019  UK 

The  2015,  2016,  2017,  2018 
rules  of 
Council Decision 2014/335/EU,  Euratom  on  the  system  of  own  resources  of  the  European  Union13  and  its 
accompanying working document, the  2014 Calculation Method14. Pursuant to the rules of this Decision, the 
net TOR “windfall gains” of the UK resulting from the increase since 2001 in the percentage of TOR retained 
by Member States as a compensation for their collection costs are neutralised and the allocated expenditure is 
adjusted by the total allocated expenditure in Member States that have acceded to the EU after 30 April 2004, 
except  for  agricultural  direct  payments  and  market-related  expenditure  as  well  as  the  part  of  the  rural 
development expenditure originating from the EAGGF, Guarantee section.  

subject 

the 

are 

to 

Furthermore, the share of Austria, Germany, the Netherlands and Sweden in the financing of the UK correction 
is reduced to one fourth of their normal share. The reduction is financed by the other Member States, excluding 
the UK. 

In the present DAB, the calculation and financing of the 1st update of the 2019 UK correction,  2nd  update of 
the 2018 UK correction, 3rd update of the 2017 UK correction and the definitive amounts of the 2015 and 2016 
UK corrections are entered. 

The difference between the definitive amount of the 2015 and 2016 UK correction and the amounts previously 
budgeted (the  1st  update  of  2015  UK  correction entered  in  AB  5/2016  and  1st  update of 2016  UK  correction 
entered  in  AB  6/2017)  is  entered  in  chapter  35  (Result  of  the  definitive  calculation  of  the  financing  of  the 
correction of budgetary imbalances for the United Kingdom) of the present DAB. 

The difference between the 3rd update of the 2017 UK correction and the amount previously budgeted (the 1st 
update  entered  in  AB  6/2018)  and  the  difference  between  the  2nd  update  of  the  2018  UK  correction  and  the 
amount previously budgeted (the provisional amount entered in Budget 2019) are entered in chapter 36 of the 
present DAB. 

The  1st  update  amount  of  the  2019  UK  correction  is  entered  in  chapter  15  (Correction  of  budgetary 
imbalances) of the present DAB, replacing the previously budgeted provisional amount. 

2.3.2 

Calculation of the corrections 

The update of the corrections for 2015, 2016, 2017, 2018 and 2019 stems mainly from the update of the VAT 
and GNI bases as communicated by Member States in autumn 2019. In addition the update of the correction for 
2018 and 2019 also takes into account the allocated expenditure of 2018 and 2019 respectively.  

The  following  table  summarises  the  updates  of  the  2015-2019  corrections  included  in  this  draft  amending 
budget.  

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

7 

 
 
 
 
                                                           
2.3.2.1  2019 UK correction 

The  following  table  summarises  the  changes  between  the  provisional  amount  of  the  2019  UK  correction 
entered in the Budget 2020 and the 1st update of the 2019 UK correction to be entered in the present DAB. 

2019 UK correction 

2019 UK 
correction 

2019 UK 
correction 

PROVISIONAL 

1st UPDATE 

Budget 2020 

DAB 7/2020 

Difference 

(1) 

(2) 

(2)-(1) 

(1)  UK share of uncapped VAT base 

16,3037% 

16,0617% 

- 0,2420% 

(2) 

UK share of enlargement-adjusted 
total allocated expenditure 

7,3015% 

7,6186% 

+ 0,3171% 

(3) 

= (1) - (2) 

9,0022% 

8,4431% 

- 0,5591% 

(4)  Total allocated expenditure 

130 008 765 143 

133 761 974 693 

+ 3.753.209.550 

(5) 

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

30 694 725 929 

33 495 190 550 

+ 2.800.464.621 

(5a)  Pre-accession expenditure 

0 

0 

0 

(5b)  Expenditure related to Art 4(1)(g) 

30 694 725 929 

33 495 190 550 

+ 2.800.464.621 

(6) 

(7) 

Enlargement-adjusted total allocated 
expenditure = (4) - (5) 

UK correction original amount = (3) 
x (6) x 0.66 

99 314 039 214 

100 266 784 143 

+ 952.744.929 

5 900 699 546 

5 587 332 443 

- 313.367.103 

(8)  UK advantage 

 690 825 371 

 459 372 003 

- 231.453.368 

(9)  Core UK correction = (7) - (8) 

5 209 874 175 

5 127 960 440 

- 81.913.735 

(10)  TOR windfall gains 

- 44 494 806 

- 42 372 235 

+ 2.122.571 

(11)  UK correction = (9) - (10) 

5 254 368 981 

5 170 332 675 

 - 84.036.306 

8 

(1)6 056 341 8472015 UK correction (cid:10)1st update (cid:10)AB 5/2016(2)6 126 699 9892015 UK correction (cid:10)FINAL (cid:10)BUDGETED(cid:10)(DAB 7/2020)(3) = (2) - (1)+ 70.358.142budgeted in chapter 35(4)4 932 590 8782016 UK correction (cid:10)1st update (cid:10)AB 6/2017(5)5 061 658 2162016 UK correction (cid:10)FINAL (cid:10)BUDGETED(cid:10)(DAB 7/2020)(6) = (5) - (4)+ 129.067.338budgeted in chapter 35(7)4 933 937 6432017 UK correction (cid:10)1st update (cid:10)AB 6/2018(8)5 158 358 0982017 UK correction (cid:10)3rd update(cid:10)BUDGETED(cid:10)(DAB 7/2020)(9) = (8) - (7)+ 224.420.455budgeted in chapter 36(10)5 023 528 6762018 UK correction (cid:10)Provisional (cid:10)B 2019(11)5 516 634 8392018 UK correction (cid:10)2nd update (cid:10)BUDGETED (cid:10)(DAB 7/2020)(12) = (11) - (10)+ 493.106.163budgeted in chapter 36(13)5 254 368 9812019 UK correction (cid:10)Provisional (cid:10)B 2020(14)5 170 332 6752019 UK correction (cid:10)1st update (cid:10)BUDGETED(cid:10) (DAB 7/2020)(15) = (14) - (13)- 84.036.306budgeted in chapter 15(16) = (3) + (6) + (9) + (12) + (14)6 087 284 773total budgeted in chapters 15 & 35 & 36(17) = (16) - (13)+ 832.915.792Difference (for information)DAB 7/2020 
 
 
 
 
 
 
The  1st  update  of  the  2019  UK  correction  is  around  EUR 84 million  lower  as  compared  to  the  provisional 
amount of the 2019 UK correction entered in the Budget 2020 due to the updates of the VAT and GNI bases as 
agreed  by  Member  States  in  ACOR  forecast  written  procedure  (May,  2020)  and  the  update  of  the  allocated 
expenditure for 2019 (the provisional amount included the forecast of the allocated expenditure). 

2.3.2.2  2018 UK correction 

The  following  table  summarises  the  changes  between  the  provisional  amount  of  the  2018  UK  correction 
entered in Budget 2019 and the 2nd update of the 2018 UK correction to be entered in the present DAB. 

2018 UK correction 

2018 UK 
correction 

2018 UK 
correction 

PROVISIONAL 

2nd UPDATE 

Budget 2019 

DAB 7/2020 

Difference 

(1) 

(2) 

(2)-(1) 

(1)  UK share of uncapped VAT base 

16,1945% 

16,0805% 

- 0,1141% 

(2) 

UK share of enlargement-adjusted 
total allocated expenditure 

7,3577% 

6,7158% 

- 0,6419% 

(3) 

= (1) - (2) 

8,8368% 

9,3646% 

+ 0,5278% 

(4)  Total allocated expenditure 

127 599 039 596 

129 720 353 887 

+ 2.121.314.291 

(5) 

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

27 076 886 462 

31 051 543 542 

+ 3.974.657.080 

(5a)  Pre-accession expenditure 

0 

0 

0 

(5b)  Expenditure related to Art 4(1)(g) 

27 076 886 462 

31 051 543 542 

+ 3.974.657.080 

(6) 

(7) 

Enlargement-adjusted total allocated 
expenditure = (4) - (5) 

UK correction original amount = (3) 
x (6) x 0.66 

100 522 153 134 

98 668 810 345 

- 1.853.342.788 

5 862 761 188 

6 098 379 860 

+ 235.618.672 

(8)  UK advantage 

854 326 562 

620 706 683 

- 233.619.879 

(9)  Core UK correction = (7) - (8) 

5 008 434 626 

5 477 673 177 

+ 469.238.550 

(10)  TOR windfall gains 

- 15 094 049 

- 38 961 662 

- 23.867.613 

(11)  UK correction = (9) - (10) 

5 023 528 676 

5 516 634 839 

+ 493.106.163 

The 2nd update of the 2018 UK correction is EUR 493 million higher as compared to the provisional amount of 
the 2018 UK correction entered in Budget 2019 due to the updates of the VAT and GNI bases as communicated 
by Member States in autumn 2019 and the update of the allocated expenditure for 2018 (the provisional amount 
included the forecast of the allocated expenditure). 

9 

 
 
 
 
 
 
 
 
3.3.2.3  2017 UK correction 

The following table summarises the changes between the 1st update of the 2017 UK correction entered in AB 
6/2018 and the 3rd update of  of the 2017 UK correction to be entered in the present DAB. 

2017 UK correction 

2017 UK 
correction 
1st UPDATE  
AB 6/2018 

2017 UK 
correction 
3rd UPDATE 
DAB 7/2020 

Difference 

(1)  UK share of uncapped VAT base 

16,2266% 

15,9063% 

- 0,3203% 

(2) 

UK share of enlargement-adjusted 
total allocated expenditure 

7,0114% 

6,9862% 

- 0,0252% 

(3) 

= (1) - (2) 

9,2152% 

8,9201% 

- 0,2951% 

(4)  Total allocated expenditure 

110 827 970 366 

110 891 011 881 

+ 63.041.515 

(5) 

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

20 962 713 989 

20 917 337 083 

- 45.376.906 

(5a)  Pre-accession expenditure 

0 

0 

0 

(5b)  Expenditure related to Art 4(1)(g) 

20 962 713 989 

20 917 337 083 

- 45.376.906 

(6) 

(7) 

Enlargement-adjusted total allocated 
expenditure = (4) - (5) 

UK correction original amount = (3) 
x (6) x 0.66 

89 865 256 377 

89 973 674 798 

+ 108.418.421 

5 465 655 078 

5 297 002 140 

- 168.652.938 

(8)  UK advantage 

 548 929 008 

 147 663 777 

- 401.265.231 

(9)  Core UK correction = (7) - (8) 

4 916 726 069 

5 149 338 362 

+ 232.612.293 

(10)  TOR windfall gains 

- 17 211 574 

- 9 019 736 

+ 8.191.838 

(11)  UK correction = (9) - (10) 

4 933 937 643 

5 158 358 098 

+ 224.420.455 

The 3rd update of the 2017 UK correction is around EUR 224 million higher than the 1st  update of the 2017 UK 
correction entered in AB 6/2018 due to the updates of the VAT and GNI bases as communicated by Member 
States in autumn 2019.  

2.3.2.4  2016 UK correction 

The following table summarises the changes between the 1st update of the 2016 UK correction entered in the 
Amending  Budget  6/2017  and  the  definitive  amount  of  the  2016  UK  correction  to  be  entered  in  the  present 
DAB. 

2016 UK correction 

2016 UK 
correction 
1st UPDATE  
AB 6/2017 

2016 UK 
correction 
DEFINITIVE 
DAB 7/2020 

Difference 

(1) 

(2) 

(2)-(1) 

(1)  UK share of uncapped VAT base 

17,5900% 

17,3576% 

- 0,2324% 

(2) 

UK share of enlargement-adjusted 
total allocated expenditure 

7,6814% 

7,6922% 

+ 0,0108% 

(3) 

= (1) - (2) 

9,9086% 

9,6654% 

- 0,2431% 

(4)  Total allocated expenditure 

117 477 286 403 

117 460 512 555 

- 16.773.848 

(5) 

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

25 506 896 869 

25 403 051 464 

- 103.845.405 

10 

 
 
 
 
 
 
 
 
 
2016 UK correction 

2016 UK 
correction 
1st UPDATE  
AB 6/2017 

2016 UK 
correction 
DEFINITIVE 
DAB 7/2020 

Difference 

(5a)  Pre-accession expenditure 

0 

0 

0 

(5b)  Expenditure related to Art 4(1)(g) 

25 506 896 869 

25 403 051 464 

- 103.845.405 

(6) 

(7) 

Enlargement-adjusted total allocated 
expenditure = (4) - (5) 

UK correction original amount = (3) 
x (6) x 0.66 

91 970 389 534 

92 057 461 091 

+ 87.071.558 

6 014 542 348 

5 872 505 812 

- 142.036.536 

(8)  UK advantage 

1 128 635 343 

 851 694 541 

- 276.940.802 

(9)  Core UK correction = (7) - (8) 

4 885 907 005 

5 020 811 271 

+ 134.904.266 

(10)  TOR windfall gains 

- 46 683 873 

- 40 846 944 

+ 5.836.929 

(11)  UK correction = (9) - (10) 

4 932 590 878 

5 061 658 216 

+ 129.067.338 

The definitive amount of the 2016 UK correction is around EUR 129 million higher than the 1st update of the 
2016  UK  correction  entered  in  the  AB  6/2017  mainly  due  to  the  updates  of  the  VAT  and  GNI  bases  as 
communicated by Member States in autumn 2019. 

2.3.2.5  2015 UK correction 

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

2015 UK correction 

2015 UK 
correction 
1st UPDATE  
AB 5/2016 

2015 UK 
correction 
DEFINITIVE 
DAB 7/2020 

Difference 

(1) 

(2) 

(2)-(1) 

(1)  UK share of uncapped VAT base 

19,2145% 

19,1419% 

- 0,0726% 

(2) 

UK share of enlargement-adjusted 
total allocated expenditure 

7,5910% 

7,5894% 

- 0,0016% 

(3) 

= (1) - (2) 

11,6235% 

11,5525% 

- 0,0710% 

(4)  Total allocated expenditure 

129 194 773 448 

129 135 893 336 

- 58 880 112 

(5) 

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

31 733 179 803 

31 639 878 296 

- 93 301 507 

(5a)  Pre-accession expenditure 

0 

0 

0 

(5b)  Expenditure related to Art 4(1)(g) 

31 733 179 803 

31 639 878 296 

- 93 301 507 

(6) 

(7) 

Enlargement-adjusted total allocated 
expenditure = (4) - (5) 

UK correction original amount = (3) 
x (6) x 0.66 

97 461 593 645 

97 496 015 040 

+ 34 421 395 

7 476 753 663 

7 433 724 758 

- 43 028 905 

(8)  UK advantage 

1 496 521 393 

1 381 345 015 

- 115 176 378 

(9)  Core UK correction = (7) - (8) 

5 980 232 270 

6 052 379 743 

+ 72 147 473 

(10)  TOR windfall gains 

-76 109 576 

-74 320 246 

+ 1 789 330 

(11)  UK correction = (9) - (10) 

6 056 341 847 

6 126 699 989 

+70 358 142 

11 

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

2.3.3 

Entry  in  DAB  7/2020  of  the  1st  update  of  the  2019  UK  correction,  2nd  update  of  the  2018  UK 
correction,  3rd  update  of  the  2017  UK  correction,  definitive  amounts  of  the  2016  ans  2015  UK 
corrections  

2.3.3.1  2015 UK correction (chapter 35) 

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

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

2015 UK correction — Chapter 35 

1 267 154 

3 148 896 

LU 

HU 

4 903 895  MT 

6 556 672 

4 385 985 

303 635 

20 284 145 

NL 

AT 

PL 

PT 

866 089 

2 764 651 

310 080 

-260 138 

1 362 429 

-9 542 201 

476 355 

504 408 

RO 

1 609 226 

1 272 857 

5 838 257 

1 207 446 

19 287 491 

627 536 

SI 

SK 

FI 

SE 

123 083 

1 555 233 

4 733 265 

-2 400 255 

-619 579 

UK 

- 70 358 142 

-208 473  Total 

0 

BE 

BG 

CZ 

DK 

DE 

EE 

IE 

EL 

ES 

FR 

HR 

IT 

CY 

LV 

LT 

2.3.3.2  2016 UK correction (chapter 35) 

The amount of the UK correction to be budgeted in chapter 35 of the present DAB is the difference between the 
definitive  amount  of  the  2016  UK  correction  (i.e.  EUR 5 061 658 216)  and  the  1st  update  of  the  2016  UK 
correction (i.e. EUR 4 932 590 878 entered in the AB 6/2017) amounting to EUR 129 067 338. 

This amount is to be financed along the revised 2016 GNI bases as known at the end of 2019. The budgeting of 
this amount in chapter 35 is summarised below: 

12 

 
 
 
 
 
 
 
 
 
2016 UK correction — Chapter 35 

12 381 389 

1 683 717 

LU 

HU 

6 602 363  MT 

3 769 035 

5 007 499 

892 527 

3 060 816 

NL 

AT 

PL 

PT 

-239 791 

RO 

4 704 411 

26 115 146 

1 550 836 

26 775 334 

893 340 

SI 

SK 

FI 

SE 

-272 563 

2 362 157 

310 901 

3 455 636 

855 227 

15 053 623 

2 825 093 

5 438 400 

821 604 

454 399 

3 348 353 

128 390 

185 011 

UK 

- 129.067.338 

904 487  Total 

0 

BE 

BG 

CZ 

DK 

DE 

EE 

IE 

EL 

ES 

FR 

HR 

IT 

CY 

LV 

LT 

2.3.3.3  2017 UK correction (chapter 36) 

The amount of the UK correction to be budgeted in chapter 36 of the present DAB is the difference between the  
3rd update of the 2017 UK correction (i.e. EUR 5 158 358 098) and the 1st update of the 2017 UK correction 
(i.e. EUR 4 933 937 643 entered in AB 6/2018) amounting to EUR 224 420 455. 

This amount is to be financed along the revised 2017 GNI bases as known at the end of 2019. The budgeting of 
this amount in chapter 36 is summarised below: 

BE 

BG 

CZ 

DK 

DE 

EE 

IE 

EL 

ES 

FR 

HR 

IT 

CY 

LV 

LT 

2017 UK correction — Chapter 36 

15 856 715 

3 231 445 

LU 

HU 

3 814 138  MT 

10 232 027 

12 286 393 

1 271 298 

5 263 528 

NL 

AT 

PL 

PT 

4 209 140 

RO 

23 937 729 

58 977 709 

1 777 843 

45 010 069 

752 318 

SI 

SK 

FI 

SE 

374 066 

 3 692 230 

265 690 

4 759 697 

1 361 203 

5 297 081 

6 203 836 

5 382 461 

765 633 

1 500 046 

5 572 775 

257 162 

741 095 

UK 

- 224 420 455 

1 627 128  Total 

0 

13 

 
 
 
 
 
 
 
 
  
2.3.3.4  2018 UK correction (chapter 36) 

The amount of the UK correction to be budgeted in chapter 36 of the present DAB is the difference between the  
2nd  update  of  the  2018  UK  correction  (i.e.  EUR 5 516 634 839)  and  the  provisional  amount  of the  2018 UK 
correction (i.e. EUR 5 023 528 676 entered in Budget 2019)  amounting to EUR 493 106 163. 

This amount is to be financed along the revised 2018 GNI bases as known at the end of 2019. The budgeting of 
this amount in chapter 36 is summarised below: 

2018 UK correction — Chapter 36 

27 909 738 

5 747 148 

LU 

HU 

12 780 811  MT 

17 414 841 

26 899 549 

2 324 061 

13 878 796 

NL 

AT 

PL 

PT 

3 459 527 

9 060 360 

599 078 

7 666 480 

3 225 174 

25 585 020 

12 696 708 

7 355 826 

RO 

15 373 126 

58 628 464 

132 102 159 

3 326 099 

80 506 049 

1 290 517 

SI 

SK 

FI 

SE 

1 888 602 

3 559 433 

9 899 420 

4 981 835 

1 428 955 

UK 

-493 106 163 

3 518 387  Total 

0 

BE 

BG 

CZ 

DK 

DE 

EE 

IE 

EL 

ES 

FR 

HR 

IT 

CY 

LV 

LT 

2.3.3.5  2019 UK correction (chapter 15) 

The  1st  update  of  the  2019  UK  correction  corresponds  to  EUR 5 170 332 675  and  is  EUR 84 036 306  lower 
than the amount entered in the Budget 2020 (EUR 5 254 368 981). 

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

14 

 
 
 
 
 
 
 
 
2019 UK correction – chapter 15 

2 885 434 

LU 

1 141 987 

- 44 283  HU 

724 119 

1 799 173  MT 

 - 370 341 

BE 

BG 

CZ 

DK 

DE 

EE 

IE 

EL 

ES 

HR 

IT 

CY 

LV 

LT 

555 892 

- 4 066 249 

108 141 

- 6 718 497 

NL 

AT 

PL 

PT 

- 6 475 934 

RO 

- 31 341 060 

FR  

- 14 103 043 

- 965 383 

- 26 667 365 

- 305 489 

- 956 379 

SI 

SK 

FI 

SE 

 - 1 400 008 

 - 186 616 

2 696 724 

1 067 249 

1 113 696 

 - 945 822 

 - 2 281 186 

 - 330 789 

1 489 533 

UK 

84 036 306 

- 459 810  Total  

0 

2.4 

Exchange rate differences in own resources 

The  EU  budget  is  established  in  EURO  whereas  Member  States'  contributions  are  determined  in  national 
currency.  The  annual  contributions  of  Member  States  are  paid  in  12  monthly  instalments  ("twelfths").  Each 
instalment  made in  a non-euro currency  is  recorded  in  the  accounts  using  the monthly  exchange  rates  of  the 
month in which the payment is made. 

For Member States outside the Eurozone the EU budget is converted into national currency using the exchange 
rate of the last quotation day of the calendar year preceding the budget year15. Thus for 2020, the exchange rate 
of 31 December 2019 is used to convert the EU budget from EURO into non-euro currencies. 

Therefore any differences in the exchange rates used for calculating the monthly "twelfth" in national currency 
and  the  accounting  rates  applicable  in the  month  of  payment  of  the "twelfth" result  inevitably  in  differences 
between the own resources amounts in EURO foreseen in the budget and the amount actually cashed in. 

Monthly exchange rate fluctuations may cancel each other out during a budget year. However in 2020, from 
January to June, a total of minus EUR 400,6 million of exchange rate differences has been registered for own 
resources. This may well increase and poses a risk of a budgetary deficit by year end. Consequently to offset 
these differences and compensate for the resulting shortfall in own resources cashed in it is proposed to create a 
new  budgetary  line  in  Title  3  –  Article  390  –  Adjustements  related  to  exchange  rate  differences  for  own 
resources - to enter the accrued exchange rate differences till June.  

Revenue line 

3 9 0 

Total 

Adjustment related t oexchange rate differences for own resources 

Name 

EUR 

Amount 
-400 600 000 
-400 600 000 

The  Commission  will  keep  monitoring  the  evolution  of  the  differences  and  will  propose,  if  need  be,    new 
budgetary amendments to the Budgetary Authority to update the figure in an autumn draft amending budget. 

15 See Article 10a (1) of the Making Available Regulation 609/2014. 

15 

 
 
 
 
 
                                                           
2.5 

Fines and penalty payments 

Taking  into  account  the  amounts  that  have  been  cashed,  it  is  proposed  to  increase  the  initial  forecasts 
introduced in the budget 2020 (EUR 100 million) by EUR 118 million. This will reduce accordingly the own 
resources contributions from Member States to the EU budget. 

The detail by line is shown in the table below. 

Revenue line 

7 1 0 

7 1 1 

Total 

Name 
Fines,  periodic  penalty  payments  and  other  penalties  in  connection  with  the 
implementation of the rules on competition 
Penalty payments and lump sums imposed on a Member State for not complying 
with  a  judgment  of  the  Court  of  Justice  of  the  European  Union  on  its  failure  to 
fulfil an obligation under the Treaty 

EUR 

Amount 
85 000 000 

33 000 000 

118 000 000 

16