Communication from the Commission to the European Parliament, the Coucil and the Court of Auditors - Annual Accounts of the European Commission 2020
Date: 2021-06-30
Institutions: Directorate-General for Budget, European Commission
Subjects: European Commission, balance sheet, closing of accounts, consolidated account, financial situation, general budget (EU), implementation of the budget

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 30.6.2021  COM(2021) 382 final    Communication from the Commission to the European Parliament, the Coucil and the Court of Auditors - Annual Accounts of the European Commission 2020  
 
 
Annual accounts of the European Commission 2020 

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 ........................................................... 57 

1 

 
 
  
 
Annual accounts of the European Commission 2020 

CERTIFICATION OF THE ACCOUNTS 

The annual accounts of the European Commission  for the year 2020  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 2021 

2 

 
 
 
 
 
 
Annual accounts of the European Commission 2020 

EUROPEAN COMMISSION 
FINANCIAL YEAR 2020 

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 2020 

CONTENTS 

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

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

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

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

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 RISK MANAGEMENT .............................................................. 51 

RELATED PARTY DISCLOSURES .............................................................. 55 

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

4 

 
 
 
Annual accounts of the European Commission 2020 

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 

31.12.2020 

 EUR million 
31.12.2019 

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 

 256 
8 499 
 588 
97 945 
34 361 
45 928 
187 577 

13 591 
29 092 
28 269 
 74 
15 380 
86 406 
273 984 

(115 408) 
(3 730) 
(83 734) 
(202 872) 

(1 518) 
(10 608) 
(33 107) 
(63 708) 
(108 940) 
(311 812) 

 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) 

(37 828) 

(76 873) 

Reserves 
Amounts to be called from Member States* 
NET ASSETS 

2.14 
2.15 

3 501 
(41 329) 
(37 828) 

3 306 
(80 179) 
(76 873) 

*  The European Parliament adopted a budget on 18 December 2020 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 2021. 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 

 
 
 
 
 
 
   
 
 
 
   
 
 
 
 
 
 
   
 
   
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

STATEMENT OF FINANCIAL PERFORMANCE 

Note 

2020 

EUR million 
2019 

REVENUE 
Revenue from non-exchange transactions 
GNI resources 
Traditional own resources 
VAT 
Fines 
Recovery of expenses 
UK Withdrawal Agreement 
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 
3.7 
3.7 
3.8 
3.9 
3.10 

125 393 
19 559 
17 858 
 452 
1 355 
47 456 
3 263 
215 337 

3 424 
 687 
4 111 
219 448 

(40 461) 

(14 467) 

(41 118) 

(13 677) 
(2 701) 

(22 120) 

(4 497) 
(4 178) 
(3 257) 
(8 485) 
(2 160) 
(4 976) 
(162 099) 
57 349 

108 820 
21 235 
18 128 
4 291 
2 627 
– 
(2 288) 
152 813 

1 798 
 725 
2 522 
155 335 

(43 951) 

(13 541) 

(35 178) 

(11 218) 
(2 608) 

(18 965) 

(3 820) 
(4 085) 
(2 878) 
(8 163) 
(1 458) 
(4 866) 
(150 730) 
4 605 

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Annual accounts of the European Commission 2020 

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 

2020 
57 349 

 33 
 762 
(40 631) 
(11 572) 

(50 624) 

 (13) 
18 359 
 662 
40 592 
5 314 

(2 667) 

(3 218) 

EUR million 
2019 
4 605 

 30 
 800 
1 203 
(1 572) 

 745 

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

3 874 

(1 803) 

(15 131) 

(14 073) 

 44 

 99 

(1 161) 

 3 

(1 196) 

 (62) 

(3 157) 

(3 157) 
18 538 
15 380 

 (952) 

 (1) 

(2 936) 

 (121) 

1 592 

1 592 
16 946 
18 538 

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STATEMENT OF CHANGES IN NET ASSETS 

Annual accounts of the European Commission 2020 

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 
Movement in Guarantee Fund reserve 
Fair value movements 
Remeasurements in employee benefits liability 
Other 
2019 budget result credited to Member States 
Economic result of the year 
BALANCE AS AT 31.12.2020 

Amounts to be called 
from Member States 
Accumulated Surplus/(Deficit) 
(68 885) 
 (21) 
– 
(14 073) 
 (1) 
(1 803) 
4 605 
(80 179) 
 (173) 
– 
(15 131) 
 22 
(3 218) 
57 349 
(41 329) 

Other reserves 

Fair value 
reserve 

2 957 
 21 
– 
– 
 (48) 
– 
– 
2 930 
 173 
– 
– 
 (71) 
– 
– 
3 031 

 229 
– 
 148 
– 
- 
– 
– 
 377 
– 
 93 
– 
– 
– 
– 
 470 

EUR million 

Net Assets 

(65 700) 
– 
 148 
(14 073) 
 (49) 
(1 803) 
4 605 
(76 873) 
– 
 93 
(15 131) 
 (49) 
(3 218) 
57 349 
(37 828) 

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Annual accounts of the European Commission 2020 

NOTES TO THE FINANCIAL STATEMENTS 

For further information in addition to the notes below, please also see the 2020 EU  consolidated annual 
accounts. 
Note that in the following tables  amounts concerning the UK  are still shown under the heading Member 
States as although the UK departed the Union on 1 February 2020, during the transition period up to 31 
December  2020  it  continued  to  have  a  financial  relationship  with  the  Union  equivalent  to  that  of  a 
Member State.  

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Annual accounts of the European Commission 2020 

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 2020 

There are no new EAR which became effective for annual periods beginning on or after 1 January 2020. 

New EAR adopted but not yet effective at 31 December 2020 

On  17  December 2020  the  Accounting  Officer  of the  European  Commission  adopted the  revised  EAR  11 
‘Financial  Instruments’,  which  is  effective  for  accounting  periods  beginning  on  or  after  1  January  2021. 
The  revised  EAR  11  has  been  updated  in  line  with  the  new  IPSAS  41  ‘Financial  Instruments’  and 
establishes the principles for the financial reporting of the financial assets and financial liabilities held by 
the EU entities. 

The main changes and their expected impacts on the EU 2021 accounts are as follows:   

New classification and measurement principles for financial assets 

The revised EAR 11 introduces a principles-based approach to the classification of financial assets which 
is based on two criteria: the management model which an entity applies for managing its financial assets 
and the contractual cash-flow characteristics of those assets. Depending on these criteria, financial assets 
are  classified  in  the  categories  financial  assets  at  amortised  cost  (AC),  financial  assets  at  fair  value 
through net assets/equity (FVNA), or financial assets at fair value through surplus and deficit (FVSD). 

Financial assets with contractual terms that represent solely principal and interests are classified as either 
AC (if the financial asset is held within a management model whose objective is to hold financial assets in 
order to collect contractual cash flows) or FVNA (if the financial asset is held within a management model 
whose  objective  is  achieved  by  both  collecting  contractual  cash  flows  and  selling  financial  assets). 
Financial assets that do not meet the criteria to be classified as either AC or FVNA, in particular financial 
assets  for  which  the  contractual  cashflows  do  not  represent  solely  principal  and  interests  or  which  are 
held within other management models, are classified as FVSD.   

In line with these principles, in the 2021 EU annual accounts all equity investments which are currently 
classified  as  ‘available  for  sale’  will  be  reclassified  as  FVSD.  Debt  securities  are  also  expected  to  be 
reclassified as FVSD, given that the EU manages these asset portfolios and evaluates their performance 
on a fair value basis. The related fair value reserve will be released to Net Assets. 

New impairment model 

Whereas  the  current  impairment  model  is  based  on  incurred  losses,  the  revised  EAR  11  introduces  a 
forward-looking  impairment  model  based  on  expected  credit  losses,  taking  into  account  all  possible 

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Annual accounts of the European Commission 2020 

default  events  and  any  credit  enhancements  that  are  integral  to  the  contractual  terms.  As  regards  the 
applicable  time  horizon  a  staging  approach  applies:  as  long  as  there  is  no  significant  increase  in  credit 
risk,  the  impairment  allowance  is  measured  at  an  amount  equal  to  the  12-months  expected  credit  loss 
(stage 1). In case of a significant increase in credit risk (stage 2) and for credit-impaired financial assets, 
the impairment allowance equals the life time expected credit loss. The new impairment model applies to 
all financial assets measured at AC or at FVNA, loan commitments and financial guarantee contracts. 

It is expected that the new forward-looking impairment model will lead to a recognition of an additional 
impairment allowance in the 2021 EU annual accounts, in particular in relation to the loans for financial 
assistance provided to partner countries under the MFA and Euratom programmes. 

Financial guarantee accounting 

Under  the  current  EAR  11,  most  financial  guarantees  –  in  particular  those  provided  at  no  or  nominal 
consideration  –  are  accounted  for  in  accordance  with  the  principles  of  EAR  10  ‘Provisions,  contingent 
liabilities  and  contingent  assets’,  hence  either  recognised  as  provisions  or  disclosed  as  contingent 
liabilities depending on the probability of loss. 

The  revised  EAR  11  requires  the  application  of  the  financial  guarantee  accounting  requirements  to  all 
financial  guarantee  contracts,  which  should  be  initially  recognised  either  at  fair  value  or  at  the  life  time 
expected  credit  loss  in  case  no  reliable  measure  of  fair  value  can  be  determined.  At  subsequent 
measurement,  financial  guarantee  contracts  should  be  measured  at  the  higher  of  (i)  the  amount  of  the 
loss allowance, and (ii) the amount initially recognised less, when appropriate, the cumulative amount of 
amortisation recognised in accordance with the principles of EAR 4 ‘Revenue from exchange transactions’. 

As a consequence, in the 2021 EU accounts the existing financial guarantee contracts are expected to be 
reclassified from financial provisions to the financial guarantee liability categories and re-measured to the 
higher  of  the  life  time  expected  credit  loss,  and  –  if  applicable  –  the  amount  initially  recognised  as 
provisions less accumulated amortisation. This change is expected to trigger an increase in the financial 
liabilities on the balance sheet, in particular in relation to the guarantees provided to the EIB Group under 
the External Lending Mandate. 

The new requirements shall be applied retrospectively and subject to the specific transitional provisions in 
the revised EAR 11. In particular, no restatement of comparatives is required. Hence, the impacts of any 
remeasurements will be recognised in Net Assets at the initial application date of the revised EAR 11. 

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 entities falling under the scope of consolidation, which 
now  comprises  52  controlled  entities  and  1  associate,  can  be  found  in  note  9.  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 

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Annual accounts of the European Commission 2020 

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. These entities are referred to as ‘Minor entities’ and are 
separately listed in note 9. In 2020, 8 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 
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,  revenues  and  expenses,  as  well  as 
its share of assets, liabilities, revenues and expenses 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  the  behalf  of  these  entities. 
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. 

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Annual accounts of the European Commission 2020 

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: 

Euro exchange rates 
Currency 
BGN 
CZK 
DKK 
GBP 
HRK 
HUF 

31.12.2020 
1.9558 
26.2420 
7.4409 
0.8990 
7.5519 
363.8900 

1.4.2.  Use of estimates 

31.12.2019  Currency 
1.9558  PLN 
25.4080  RON 
7.4715  SEK 
0.8508  CHF 
7.4395  JPY 
330.5300  USD 

31.12.2020 
4.5597 
4.8683 
10.0343 
1.0802 
126.4900 
1.2271 

31.12.2019 
4.2568 
4.783 
10.4468 
1.0854 
121.9400 
1.1234 

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  

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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  life  time  or  legal  life 
time 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: 

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. 

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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 
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. 

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(ii)  Loans and receivables 

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

(iii) Held-to-maturity investments 

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

(iv) Available for sale financial assets 

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

Initial recognition and measurement 

Purchases  and  sales  of  financial  assets  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 of doing so 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 

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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 
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 

 17 

 
 
 
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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 
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  contributions  to  EU  trust  funds  not  consolidated  in  the  European  Commission,  or  to  other 
unconsolidated  entities,  are  classified  as  pre-financing  since  their  purpose  is  to  give  a  float  to  the  trust 
fund to allow it to finance specific actions defined under the trust fund’s objectives. The EU contributions 
to trust funds are measured at the initial amount of the EU contribution less eligible expenses, including 
estimated amounts where necessary, incurred by the trust fund during the reporting period and allocated 
to the EU contribution in accordance with the underlying agreement. 

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1.5.8.  Exchange receivables and non-exchange recoverables 

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-exchange 
transactions are not financial instruments, as they do not arise from a contract that would give rise to a 
financial  liability  or  equity  instrument.  However,  in  the  notes  to  the  financial  statements  recoverables 
from  non-exchange  transactions  are  disclosed  together  with  receivables  from  exchange  transactions 
where appropriate. 

1.5.9.  Cash and cash equivalents 

Cash and cash equivalents are financial instruments and include cash at hand, deposits held at call or at 
short  notice  with  banks  and  other  short-term  highly  liquid  investments  with  original  maturities  of  three 
months or less. 

1.5.10.  Employee benefits 

The  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: 

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i. 

ii. 

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

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

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

The above post-employment benefits qualify as defined benefit obligations of the EU and are calculated at 
each  reporting  date  by  estimating  the  amount  of  future  benefit  that  employees  have  earned  in  the 
current and prior periods, discounting that amount and deducting the fair value of any plan assets. The 
calculation of defined benefit obligation is performed annually using the projected unit credit method. The 
present  value  of  the  defined  benefit  obligation  is  determined  by  discounting  the  estimated  future  cash 
outflows  using  interest  rates  of  government  bonds  that  are  denominated  in  the  currency  in  which  the 
benefits will be paid, and that have terms to maturity approximating to the terms of the related pension 
liability. 

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

Therefore, in order to depict the economic substance of the underlying transaction required by the faithful 
representation  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 heading ‘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  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). 

 20 

 
 
 
 
 
                                                 
Annual accounts of the European Commission 2020 

1.5.11.  Provisions 

Provisions are recognised when the EU has a present legal or constructive obligation towards third parties 
as a result of past events, it is more likely than not that an outflow of resources will be required to settle 
the  obligation,  and  the  amount  can  be  reliably  estimated.  Provisions  are  not  recognised  for  future 
operating  losses.  The  amount  of  the  provision  is  the  best  estimate  of  the  expenses  expected  to  be 
required  to  settle  the  present  obligation  at  the  reporting  date.  Where  the  provision  involves  a  large 
number  of  items,  the  obligation  is  estimated  by  weighting  all  possible  outcomes  by  their  associated 
probabilities (‘expected value’ method). 

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

1.5.12.  Financial liabilities 

Financial  liabilities  are  classified  as  financial  liabilities  at  fair  value  through  surplus  or  deficit,  financial 
liabilities carried at amortised cost or as financial guarantee liabilities. 

Borrowings are composed of borrowings from credit institutions and debts evidenced by certificates. They 
are recognised initially at fair value, being their issue proceeds (fair value of consideration received) net 
of  transaction  costs  incurred,  then  subsequently  carried  at  amortised  cost  using  the  effective  interest 
method;  any  difference  between  proceeds,  net  of  transaction  costs,  and  the  redemption  value  is 
recognised in the statement of financial performance over the period of the borrowings using the effective 
interest method. In the case of loans granted on borrowed funds, the effective interest method may not 
be  applied  to  loans  and  borrowings,  based  on  materiality  considerations.  The  transaction  costs  incurred 
by  the  EU  and  then  recharged to  the beneficiary of the  loan  are directly  recognised  in the  statement of 
financial performance. 

Financial liabilities categorised at fair value through surplus or deficit include derivatives where fair value 
is negative. They follow the same accounting treatment as financial assets at fair value through surplus 
or deficit, see note 1.5.5.  

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

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

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

 21 

 
 
 
 
 
Annual accounts of the European Commission 2020 

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 eligible amount. 

Payables  arising  from  the  purchase  of  goods  and  services  are  recognised  at  invoice  reception  for  the 
original amount and the corresponding eligible 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 a 
payment has been made in advance for services or goods that have not yet been received, the expense 
will be deferred and recognised in the subsequent accounting period. 

1.6.  STATEMENT OF FINANCIAL PERFORMANCE 

1.6.1.  Revenue 

REVENUE FROM NON-EXCHANGE TRANSACTIONS 

The vast majority of the EU’s revenue relates to non-exchange transactions as follows: 

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: 

 22 

 
 
 
Annual accounts of the European Commission 2020 

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. 

If 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  is  given  instead,  the  outstanding 
recoverable is written down. 

The  accumulated  interest  received  by  the  Commission  on  the  bank  accounts  where  received  payments 
are deposited is recognised as revenue, and any contingent liability is increased accordingly. 

Since 2010, all provisionally cashed fines are managed by the Commission in a specifically created fund 
(BUFI) and invested in financial instruments. 

REVENUE FROM EXCHANGE TRANSACTIONS 

Revenue  from  the  sale  of  goods  and  services  is  recognised  when  the  significant  risk  and  rewards  of 
ownership of the goods are transferred to the purchaser. Revenue associated with a transaction involving 
the provision of services is recognised by reference to the stage of completion of the transaction at the 
reporting date. 

Interest revenue and expense 

Interest  revenue  and  expense  are  recognised  in  the  statement  of  financial  performance  using  the 
effective  interest  method.  This  is  a  method  of  calculating  the  amortised  cost  of  a  financial  asset  or  a 
financial liability and of allocating the interest revenue or interest expense over the relevant period. When 
calculating the effective interest rate, the EU estimates cashflows considering all contractual terms of the 
financial  instrument  (for  example  prepayment  options)  but  does  not  consider  future  credit  losses.  The 
calculation includes all fees and interest rate 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. 

 23 

 
 
 
Annual accounts of the European Commission 2020 

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. 

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 2020 

2.  NOTES TO THE BALANCE SHEET  

ASSETS 

2.1.  INTANGIBLE ASSETS  

Gross carrying amount at 31.12.2019 
Additions 
Disposals 
Transfer between asset categories 
Other changes 
Gross carrying amount at 31.12.2020 
Accumulated amortisation at 31.12.2019 
Amortisation charge for the year 
Amortisation written back 
Disposals 
Transfer between asset categories 
Other changes 
Accumulated amortisation at 31.12.2020 
NET CARRYING AMOUNT AT 31.12.2020 
NET CARRYING AMOUNT AT 31.12.2019 

EUR million 

 394 
 80 
 (4) 
 0 
– 
 470 
 (185) 
 (33) 
– 
 4 
 0 
– 
 (214) 
 256 
 209 

25 

 
 
 
 
 
 
2.2.  PROPERTY, PLANT AND EQUIPMENT 

Annual accounts of the European Commission 2020 

Gross carrying amount at 31.12.2019 

Additions 

Disposals 

Transfer between asset categories 

Other changes 

Gross carrying amount at 31.12.2020 

Accumulated depreciation at 31.12.2019 

Depreciation charge for the year 

Depreciation written back 

Disposals 

Transfer between asset categories 

Land and 
buildings 
1 464 

 7 

 (20) 

 19 

– 

1 471 

 (917) 

 (35) 

– 

 7 

– 

Space assets 

5 680 

 6 

 (16) 

– 

– 

5 670 

(2 000) 

 (635) 

– 

 10 

– 

Plant and 
equipment 
 260 

Furniture 
and vehicles  
 67 

Computer 
hardware 
 226 

 11 

 (7) 

 (0) 

– 

 264 

 (240) 

 (10) 

– 

 7 

 0 

 2 

 (2) 

– 

– 

 66 

 (58) 

 (3) 

– 

 2 

– 

 17 

 (20) 

 3 

– 

 227 

 (196) 

 (18) 

– 

 20 

 (2) 

Other  Finance leases  

 154 

 3 

 (7) 

 1 

– 

 153 

 (131) 

 (8) 

– 

 6 

 (0) 

1 549 

 4 

 (2) 

 (3) 

– 

1 548 

 (850) 

 (53) 

– 

 1 

 2 

Accumulated depreciation at 31.12.2020 

 (945) 

(2 625) 

 (243) 

 (59) 

 (197) 

 (133) 

 (899) 

Assets under 
construction 
3 172 

1 048 

– 

 (21) 

 0 

4 201 

– 

– 

– 

– 

– 

– 

EUR million 

Total 

12 572 

1 100 

 (72) 

 (0) 

 0 

13 600 

(4 392) 

 (762) 

– 

 53 

 (0) 

(5 101) 

NET CARRYING AMOUNT AT 31.12.2020 

NET CARRYING AMOUNT AT 31.12.2019 

 526 

 547 

3 045 

3 680 

 20 

 20 

 8 

 9 

 29 

 30 

 20 

 23 

 649 

 699 

4 201 

3 172 

8 499 

8 180 

26 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

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 2020,  the  EU  holds 
29.7 % of the ownership interest in EIF (2019: 29.7 %). 

Participation at 31.12.2019 
Contributions 
Dividends received 
Share of net result 
Share in the net assets 
Participation at 31.12.2020 

EIF summarised financial information: 

Assets 
Liabilities 
Revenue 
Expenses 
Surplus/(deficit) 

EUR million 
European Investment Fund 
 591 
– 
– 
 38 
 (42) 
 588 

31.12.2020 
Total EIF 
3 256 
(1 277) 
 322 
 (194) 
 129 

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

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 

31.12.2020 
1 979 
29.7% 

 588 

EUR million 
31.12.2019 
1 990 
29.7% 

 591 

The Commission has paid-in 20 % of its subscribed shares in the EIF capital at 31 December 2020, 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 2020 

2.4.  FINANCIAL ASSETS 

Note 

31.12.2020 

EUR million 
31.12.2019 

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

Total 
Non-current 
Current 

14 906 
 193 
82 846 
97 945 

3 163 
 6 
10 421 
13 591 
111 536 

13 941 
 134 
51 352 
65 427 

2 932 
 3 
1 285 
4 220 
69 647 

31.12.2020 
1 598 
 188 
1 786 

EUR million 
31.12.2019 
1 863 
 188 
2 051 

7 526 
2 794 
 692 
11 012 

3 097 
 764 
 533 
 163 
 143 
 104 
 96 
 82 
 289 
5 271 
18 069 
14 906 
3 163 

6 654 
2 545 
 595 
9 794 

2 455 
 699 
 507 
 166 
 70 
 105 
 597 
 112 
 317 
5 028 
16 873 
13 941 
2 932 

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 

31.12.2020 

31.12.2019 

EUR million 

Fair value 

 6 
 193 
 199 
 193 
 6 

Notional 
amount  
 417 
3 197 
3 614 
3 197 
 417 

28 

Notional 
amount  
 393 
1 439 
1 832 
1 439 
 393 

Fair value 

 3 
 134 
 137 
 134 
 3 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

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 

31.12.2020 
13 865 
2 712 

EUR million 
31.12.2019 
13 949 
1 543 

1 691 
18 268 

1 518 
17 010 

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

Opening balance at 1.1.2020 
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 31.12.2020 

EUR million 

1 518 
 179 
 10 
 (17) 
– 
– 
 1 
1 691 

2.4.3. 

Loans 

Loans for financial assistance 
Loans for budget programmes  
Total 
Non-current 
Current 

Note 
2.4.3.1 
2.4.3.2 

31.12.2020 
93 193 
 75 
93 268 
82 846 
10 421 

EUR million 
31.12.2019 
52 564 
 73 
52 637 
51 352 
1 285 

29 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

2.4.3.1.  Loans for financial assistance 

Total at 31.12.2019 
New loans 
Repayments 
Exchange differences 
Changes in carrying amount 
Impairment 
Total at 31.12.2020 
Non-current 
Current 

EFSM 
47 394 
– 
– 
– 
 2 
– 
47 396 
37 050 
10 346 

SURE 
– 
39 500 
– 
– 
 3 
– 
39 503 
39 500 
 3 

BOP 
 201 
– 
– 
– 
 0 
– 
 201 
 200 
 1 

MFA  Euratom 
 214 
 100 
 (35) 
– 
 0 
– 
 279 
 250 
 29 

4 754 
1 675 
 (617) 
– 
 0 
– 
5 813 
5 783 
 30 

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

EUR million 
Total 
52 564 
41 275 
 (651) 
– 
 6 
– 
93 193 
82 783 
10 410 

Nominal  value  of  loans  for  financial  assistance  at  31  December  2020  total  EUR 92  565 million  (2019: 
EUR 51 941 million). 

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

European Financial Stabilisation Mechanism (EFSM) 
Support to mitigate Unemployment Risks in an Emergency 
(SURE) 
Balance of Payment (BOP) 
Macro Financial Assistance (MFA) 
Euratom 

31.12.2020 
0.50% - 3.75% 

31.12.2019 
0.50% - 3.75% 

0.00% - 0.30% 

2.88% 
0.00% - 3.69% 
0.00% - 5.76% 

- 

2.88% 
0.00% - 3.82% 
0.08% - 5.76% 

2.4.3.2.  Loans for budget programmes 

Impairment on loans for budget programmes 

Loans for budget programmes 
Subrogated loans 
Total 

EUR million 
31.12.2019  Additions  Reversals  Write-off   Other  31.12.2020 
 13 
– 
 726 
– 
 739 
– 

 10 
 658 
 668 

– 
 (4) 
 (4) 

 3 
 73 
 75 

– 
– 
– 

Nominal value of loans for budget programmes at 31 December 2020 total EUR 728 million (2019: EUR 
680 million). 

30 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

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 

31.12.2020 

EUR million 
31.12.2019 

2.5.1 
2.5.2 

2.5.1 
2.5.2 

30 417 
3 825 
 119 
34 361 

25 765 
3 327 
29 092 
63 453 

21 906 
4 045 
 60 
26 011 

22 978 
2 892 
25 870 
51 881 

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 31.12.2020 

Gross 
amount 

Cleared via 
accruals 

Net amount 
at 31.12.2019 

EUR million 

3 193 

23 074 
8 222 
4 192 

3 193 

3 193 

(3 846) 
(1 348) 
(1 520) 

19 229  17 985 
6 830 
3 549 

6 874 
2 672 

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

17 368 
18 567 
1 121 

(10 940) 
(10 931) 
 (843) 

6 428  13 162 
7 636  16 522 
 858 

 278 

(8 633) 
(10 339) 
 (665) 

4 770 

(3 659) 

1 110 

4 038 

(3 158) 

1 515 

(1 043) 

 471 

1 491 

 (861) 

3 193 

14 444 
5 301 
2 086 

4 529 
6 184 
 194 

 880 

 630 

9 068 

(6 020) 

3 048 

8 289 

(5 317) 

2 972 

11 675 

(6 433) 
102 764  (46 583) 
– 
(46 583) 

30 417 
72 347 

5 242  10 574 

(6 104) 
56 181  86 493  (41 609) 
30 417  21 906 
– 
(41 609) 
25 765  64 587 

4 471 
44 884 
21 906 
22 978 

31.12.2020 

EUR million 
31.12.2019 

3 520 

3 633 
7 153 
3 825 
3 327 

3 304 

3 634 
6 937 
4 045 
2 892 

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 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

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 

31.12.2020 

EUR million 
31.12.2019 

44 279 
1 649 
45 928 

26 779 
1 490 
28 269 
74 197 

2 436 
1 150 
3 585 

19 172 
 816 
19 988 
23 573 

2.6.1.  Recoverables from non-exchange transactions 

Note 

31.12.2020 

EUR million 
31.12.2019 

Non-current 
Member States 
UK Withdrawal Agreement 
Accrued income and deferred charges 
Other recoverables 

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

Total 

2.6.1.1.  Recoverables from Member States 

2.6.1.1 
2.6.1.2 
2.6.1.4 

2.6.1.1 
2.6.1.2 
2.6.1.3 
2.6.1.4 

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 

32 

2 231 
40 629 
1 261 
 158 
44 279 

7 163 
6 827 
11 295 
 572 
 922 
26 779 
71 058 

2 422 
– 
– 
 14 
2 436 

6 117 
– 
11 301 
1 581 
 173 
19 172 
21 607 

EUR million 
  31.12.2020  31.12.2019 
5 478 
1 591 
 7 
 (931) 
– 
6 145 
1 722 

5 297 
1 460 
2 188 
 (892) 
– 
8 053 
1 378 

 720 

 (837) 
1 260 
 53 
 10 
 17 
9 393 
2 231 
7 163 

 879 

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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

2.6.1.2.  UK Withdrawal agreement 

Due from the UK 
Due to the UK 
Total 
Non-current 
Current 

Article 140 
34 966 
– 
34 966 
28 196 
6 769 

Article 142 
14 338 
– 
14 338 
14 327 
 11 

EUR million 
Other  31.12.2020 
49 579 
(2 122) 
47 456 
40 629 
6 827 

 275 
(2 122) 
(1 847) 
(1 894) 
 47 

Article 140 – Outstanding Commitments 

Outstanding budgetary commitments at 31.12.2020 as reported in the 
budgetary implementation reports 
Commitments on non-differentiated budget lines: amount of payment 
appropriations carried over automatically 
Commitments where the UK has an opt-out 
Commitments financed by assigned revenue 
Payment appropriations available from internal assigned revenue 
Other adjustments (non-automatic carryovers of commitment 
appropriations) 
Adjusted budgetary commitments at 31.12.2020 on which UK share 
is applied 
UK share of the adjusted budgetary commitments 
Net financial corrections related to 2014-2020 or previous programme 
periods 
TOR relating to 2020 and made available to the Union in 2021 
Amounts owed by the UK under Article 140 
Estimated non-implementation 
Total 
Non-current 
Current 

Article 142 – Union liabilities at end 2020 

EUR million 
31.12.2020 
303 197 

(1 196) 

(1 826) 
(4 709) 
(1 128) 
 10 

294 347 

36 376 
 (0) 

 (402) 
35 973 
(1 008) 
34 966 

28 196 
6 769 

Unpaid 31.12.2020 Liability 
UK Share 
Non-current 
Current 

Pension Scheme of 
European Officials 

Joint Sickness 
Insurance 
Scheme 

Other 
retirement 
schemes 

  EUR million 

31.12.2020 

100 741 
12 450 
12 450 
– 

12 935 
1599 
1 599 
– 

2 344 
290 
 279 
 11 

116 020 
14 338 
14 327 
 11 

33 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

Other amounts  

Due from the UK: 

Article 136 
Article 147 

Due to the UK: 
Article 141 
Article 143 
Article 144 
Article 145 
Article 146 

Total 

Non-current 

Current 

2.6.1.3.  Recoverables from competition fines 

Recoverable from fines gross amount 
Provisional payments 
Impairment 
Total 
Non-current 
Current 

2.6.1.4.  Accrued income and deferred charges 

31.12.2020 
14 503 
(3 023) 
 (186) 
11 295 
– 
11 295 

EUR million 
31.12.2020 

 230 
 46 
 275 

(1 766) 
 (93) 
 (46) 
 (183) 
 (33) 
(2 122) 
(1 847) 

(1 894) 

 47 

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

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

31.12.2020 
1 754 
 79 
1 833 
1 261 
 572 

EUR million 
31.12.2019 
1 502 
 79 
1 581 
– 
1 581 

34 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

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 

31.12.2020 

EUR million 
31.12.2019 

1 641 
 8 
1 649 

 243 
 (181) 
 202 
1 226 
1 490 
3 139 

1 137 
 13 
1 150 

 205 
 (148) 
 142 
 617 
 816 
1 966 

31.12.2020 
 59 
 15 
 74 

EUR million 
31.12.2019 
 47 
 15 
 62 

31.12.2020 
11 342 
 80 
 8 
 0 
11 430 
2 446 
1 458 
 46 
15 380 

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

35 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

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 
100 741 
N/A 
100 741 

Other 
retirement 
benefit 
schemes 
1 732 
N/A 
1 732 

Joint 
Sickness 
Insurance 
Scheme 
13 289 
 (354) 
12 935 

31.12.2020 
Total 

EUR million 
31.12.2019 
Total 

115 762 
 (354) 
115 408 

97 359 
 (309) 
97 050 

Actuarial assumptions - employee benefits 

2020 
Nominal discount rate  
Expected inflation rate  
Real discount rate 
Expected rate of salary increases 
Medical cost trend rates 
Retirement age 
2019 
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 

0.4% 
1.2% 
(0.8)% 
1.8% 
N/A 

63/64/66 

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

63/64/66 

0.5% 
1.3% 
(0.8)% 
1.8% 
2.6% 
63/64/66 

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

Movement in present value of employee benefits defined benefit obligation 

Present value as at 31.12.2019 
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 31.12.2020 

Pension 
Scheme of 
European 
Officials  
83 842 

Other 
retirement 
benefit 
Schemes 
1 446 

Joint 
Sickness 
Insurance 
Scheme 
12 071 

EUR million 
Total 

97 359 

3 441 
 919 

 94 
 14 

 348 
 145 

3 883 
1 077 

2 348 
– 
11 896 

 4 
– 
 209 

 (141) 
– 
 964 

2 211 
– 
13 069 

(1 706) 
100 741 

 (34) 
1 732 

 (97) 

(1 837) 
13 289  115 762 

36 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

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

Present value as at 31.12.2019 
Net movement in plan assets 
Present value as at 31.12.2020 

Pension Scheme of European Officials sensitivity 

EUR million 

 309 
 45 
 354 

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

Defined benefit obligation 

2020 

2019 

Increase 
0.1% 
(2 247) 

Decrease 
0.1% 
2 319 

Increase 
0.1% 
(1 797) 

EUR million 

Decrease 
0.1% 
1 854 

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

Defined benefit obligation 

Increase 0.1% 
2 206 

Decrease 0.1% 
(2 143) 

Increase 0.1% 
1 774 

Decrease 0.1% 
(1 724) 

2020 

EUR million 

2019 

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

Defined benefit obligation 

2020 

One year 
increase 
(1 104) 

One year 
decrease 
1 417 

2019 

One year 
increase 
 (620) 

EUR million 

One year 
decrease 
 771 

Joint Sickness Insurance Scheme sensitivity 

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

2020 
Increase 0.1%  Decrease 0.1% 

2019 
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 

 15 

 (14) 

 8 

 (8) 

 397 

 (385) 

 352 

 (341) 

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

Defined benefit obligation 

2020 
Increase 0.1%  Decrease 0.1% 
 361 

 (348) 

2019 
Increase 0.1%  Decrease 0.1% 
 322 

 (311) 

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% 
 37 

 (38) 

Increase 0.1%  Decrease 0.1% 
 29 

 (30) 

2020 

EUR million 

2019 

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

Defined benefit obligation 

2020 

One year 
increase 
 (401) 

One year 
decrease 
 421 

2019 

One year 
increase 
 (363) 

EUR million 

One year 
decrease 
 383 

37 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

2.10.  PROVISIONS 

Amount at 
31.12.2019 

Additional 
provisions 

Unused 
amounts 
reversed 

Amounts 
used 

Transfer 
between 
categories 

Change in 
estimation 

EUR million 
Amount at 
31.12.2020 

Legal cases: 
     Agriculture 
     Other 
Nuclear site 
dismantling 
Financial 
Other 

Total 
Non-current 

 440 
 5 

2 132 

1 938 
 71 
4 586 
3 490 

 168 
 13 

– 

 812 
 59 
1 053 
 743 

 (4) 
 (1) 

– 

 (1) 
 (10) 
 (16) 
 (4) 

 (435) 
 (1) 

 (30) 

 (225) 
 (8) 
 (699) 
 (435) 

– 
– 

– 

– 
– 
– 
 (392) 

– 
– 

 325 

 (2) 
– 
 323 
 329 

 170 
 17 

2 426 

2 523 
 112 
5 248 
3 730 

Current 

1 097 

 310 

 (12) 

 (263) 

 392 

 (6) 

1 518 

2.11.  FINANCIAL LIABILITIES 

Note 

31.12.2020 

EUR million 
31.12.2019 

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  

83 730 
 4 
83 734 

10 518 
 0 
 90 
10 608 
94 342 

52 351 
 9 
52 360 

1 367 
 4 
 20 
1 390 
53 750 

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

Note 
2.11.1.1 
2.11.1.2 

EUR million 
31.12.2020  31.12.2019 
52 564 
1 154 
53 718 
52 351 
1 367 

93 192 
1 055 
94 248 
83 730 
10 518 

38 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

2.11.1.1.  Borrowings for financial assistance 

Total at 31.12.2019 
New loans 
Repayments 
Exchange differences 
Changes in carrying amount 
Total at 31.12.2020 
Non-current 
Current 

SURE 
– 
39 500 

EFSM 
47 394 
– 
– 
– 
 2 

 3 
47 396  39 503 
39 500 
37 050 
 3 
10 346 

BOP 
 201 
– 
– 
– 
 0 
 201 
 200 
 1 

MFA  Euratom 
 214 
 100 
 (35) 
– 
 (0) 
 279 
 250 
 29 

4 754 
1 675 
 (617) 
– 
 0 
5 813 
5 783 
 30 

EUR million 
Total 
52 564 
41 275 
 (651) 
– 
 5 
93 192 
82 782 
10 410 

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

European Financial Stabilisation Mechanism (EFSM) 

Support to mitigate Unemployment Risks in an Emergency 
(SURE) 

Balance of Payment (BOP) 
Macro Financial Assistance (MFA) 
Euratom 

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 31.12.2020 
Interest element 
Total future minimum lease payments 
at 31.12.2020 
Total future minimum lease payments at 
31.12.2019 

31.12.2020 
0.50% - 3.75% 

31.12.2019 
0.50% - 3.75% 

0.00% - 0.30% 

– 

2.88% 
0.00% - 3.69% 
0.00% - 5.68% 

2.88% 
0.00% - 3.82% 
0.00% - 5.68% 

31.12.2020 

EUR million 
31.12.2019 

 729 
 184 
 35 
 948 

 72 
 26 
 8 
 2 
 108 
1 055 

 800 
 210 
 51 
1 061 

 67 
 24 
– 
 1 
 93 
1 154 

Future amounts to be paid 

EUR million 

< 1 year  1 - 5 years  > 5 years  Total Liability 
 789 
 12 
 801 
 253 

 303 
 7 
 310 
 133 

 419 
– 
 419 
 76 

 67 
 5 
 72 
 44 

 116 

 443 

 495 

1 054 

 115 

 451 

 602 

1 168 

39 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

2.11.2.  Financial liabilities at fair value through surplus or deficit  

31.12.2020 

31.12.2019 

EUR million 

Type of derivative 

Notional 
amount  

Fair value 

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

 215 
 14 
 229 
 229 
 0 

 1 
 4 
 4 
 4 
 0 

Notional 
amount  
 752 
 13 
 765 
 148 
 617 

Fair value 

 10 
 2 
 12 
 9 
 4 

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 

2.12.  PAYABLES 

31.12.2020 
– 
 4 

 1 

 4 

EUR million 
31.12.2019 
– 
 2 

 10 

 12 

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 

Sundry Payables 

Gross 
Amount 

Adjustments* 

Net Amount 
at 
31.12.2020 

Gross 
Amount 

Adjustments* 

EUR million 
Net Amount 
at 
31.12.2019 

 17 

 (0) 

12 651 

(2 698) 

3 479 

 796 

1 485 

 (370) 

 (90) 

 (182) 

 17 

9 954 

3 109 

 706 

1 302 

 21 

8 068 

2 882 

 854 

1 562 

 (0) 

(2 437) 

 (558) 

 (45) 

 (180) 

 20 

5 631 

2 325 

 809 

1 381 

18 428 

(3 341) 

15 088 

13 386 

(3 220) 

10 166 

16 160 

1 859 

N/A 

N/A 

16 160 

1 859 

16 255 

1 372 

N/A 

N/A 

(3 220) 

16 255 

1 372 

27 793 

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

(3 341) 

36 447 

33 107 

31 014 

40 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

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 

NET ASSETS 

2.14.  RESERVES 

Fair value reserve 
Guarantee Fund reserve 
Other reserves 
Total 

2.14.1.  Fair value reserve 

31.12.2020 
63 667 
 1 
 39 
63 708 

31.12.2020 
24 599 
18 622 
8 766 
3 009 
8 670 
63 667 

EUR million 
31.12.2019 
66 185 
 138 
 52 
66 374 

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

Note 
2.14.1 

31.12.2020 
 470 
3 043 
 (12) 
3 501 

EUR million 
31.12.2019 
 377 
2 870 
 59 
3 306 

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 

31.12.2020 
 71 
 22 
 93 

EUR million 
31.12.2019 
 176 
 (28) 
 148 

2.15.  AMOUNTS TO BE CALLED FROM MEMBER STATES 

Amounts to be called from Member States at 31.12.2019 
Return of 2019 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 31.12.2020 

41 

EUR million 

80 179 
3 218 
 173 
15 131 
 (22) 
(57 349) 

41 329 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

3.  NOTES TO THE STATEMENT OF FINANCIAL 

PERFORMANCE  

REVENUE 

REVENUE FROM NON-EXCHANGE TRANSACTIONS: 
TRANSFERS  

3.1.  RECOVERY OF EXPENSES 

Shared management 
Direct management 
Indirect management 
Total 

2020 
1 281 
 53 
 21 
1 355 

EUR million 
2019 
2 547 
 65 
 16 
2 627 

3.2.  OTHER REVENUE FROM NON-EXCHANGE 

TRANSACTIONS 

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

2020 
2 080 
1 254 
1 075 
 983 
 317 
 214 
 15 
 1 
(3 411) 
 735 
3 263 

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

42 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

REVENUE FROM EXCHANGE TRANSACTIONS 

3.3.  FINANCIAL REVENUE 

Interest on: 
     Late payments 
     Loans 
     Other  
Issue premiums 
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 

2020 

1 129 
1 167 
 60 
 674 
 258 
 22 

 70 

 41 
 2 
3 424 

EUR million 
2019 

 133 
1 178 
 67 
 2 
 193 
 29 

 125 

 69 
 2 
1 798 

3.4.  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 

3.5.  SHARED MANAGEMENT  

2020 
 356 
 38 
 34 
 17 
 2 
 240 
 687 

EUR million 
2019 
 335 
 53 
 43 
 16 
 4 
 274 
 725 

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 

2020 
40 461 

14 467 

41 118 
13 677 
2 701 

EUR million 
2019 
43 951 

13 541 

35 178 
11 218 
2 608 

112 425 

106 495 

43 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

3.6.  DIRECT MANAGEMENT 

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

3.7.  INDIRECT MANAGEMENT 

Implemented by other EU agencies and bodies 
Implemented by third countries 
Implemented by international organisations 
Implemented by other entities 
Total 

3.8.  STAFF AND PENSION COSTS 

Staff costs 
Pension costs 
Total 

3.9.  FINANCE COSTS 

Interest expenses: 
     Borrowings 
     Other  
Issue costs 
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 

2020 
11 455 
10 029 
 636 

22 120 

2020 
4 497 
 559 
3 620 
3 257 

11 933 

EUR million 
2019 
8 458 
10 095 
 412 

18 965 

EUR million 
2019 
3 820 
 637 
3 448 
2 878 

10 783 

2020 
3 524 
4 960 
8 485 

EUR million 
2019 
3 442 
4 721 
8 163 

2020 

1 160 
 22 
 672 
 47 
 41 
 110 
 5 

 21 

 81 

EUR million 
2019 

1 172 
 21 
 1 
 52 
 19 
 105 
 5 

 57 

 25 

2 160 

1 458 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

3.10.  OTHER EXPENSES 

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

2020 
1 386 
 940 
 832 
 561 
 511 
 230 
 152 
 6 
 358 
4 976 

EUR million 
2019 
1 294 
 883 
 825 
 328 
 491 
 220 
 188 
 91 
 544 
4 866 

The aggregate amount of research and development expenditure recognised as an expense during 2020 
is as follows: 

Research costs 
Non-capitalised development costs 
Total 

2020 
 391 
 85 
 476 

EUR million 
2019 
 381 
 69 
 449 

 45 

 
 
 
 
 
 
 
 
 
 
 
3.11.  SEGMENT REPORTING BY MULTIANNUAL FINANCIAL FRAMEWORK HEADING (MFF) 

Annual accounts of the European Commission 2020 

Smart and 
inclusive growth 

Sustainable 
growth 

Security and 
citizenship 

Global Europe 

Administration 

GNI resources 

Traditional own resources 

VAT 

Fines 

Recovery of expenses 

UK Withdrawal Agreement 

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 

– 

– 

– 

– 

 610 

– 

1 470 

2 080 

 331 

 135 

 466 

2 546 

– 

– 

– 

– 

 713 

– 

2 113 

2 826 

 0 

 (19) 

 (19) 

2 807 

– 

– 

(40 461) 

(14 467) 

– 

– 

(41 118) 

(13 677) 

 (594) 

(12 743) 

(3 287) 

 (543) 

(2 457) 

(1 767) 

 (40) 

(2 676) 

– 

– 

– 

– 

 17 

– 

 794 

 811 

 0 

 (5) 

 (5) 

 806 

– 

– 

– 

– 

– 

– 

– 

– 

 14 

– 

 248 

 262 

 9 

 (3) 

 5 

 267 

– 

– 

– 

– 

 (641) 

(1 325) 

 (141) 

 (728) 

 (67) 

 (6) 

 (11) 

 (387) 

 (38) 

 (229) 

(2 943) 

(1 114) 

 (195) 

 (2) 

 (500) 

 (0) 

 (162) 

(5 693) 

 (29) 

(3 435) 

 (787) 

 (706) 

 (37) 

 (135) 

(78 902) 

(76 356) 

(57 035) 

(54 228) 

(6 241) 

(5 435) 

(10 962) 

(10 695) 

* ‘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 

125 393 

125 393 

19 559 

17 858 

 452 

– 

47 456 

(2 177) 

19 559 

17 858 

 452 

1 355 

47 456 

3 263 

208 542 

215 337 

3 084 

 359 

3 443 

3 424 

 687 

4 111 

– 

– 

– 

– 

 0 

– 

 816 

 816 

 0 

 221 

 221 

1 036 

211 985 

219 448 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

(40 461) 

(14 467) 

(41 118) 

(13 677) 

(2 701) 

 (12) 

 (1) 

(22 120) 

– 

– 

 (0) 

(5 125) 

 (66) 

(1 215) 

(6 418) 

(5 382) 

– 

– 

– 

– 

(1 979) 

 (559) 

(4 497) 

(4 178) 

(3 257) 

(8 485) 

(2 160) 

(4 976) 

(2 540) 

(162 099) 

209 446 

57 349 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

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 

31.12.2020 

31.12.2019 

Ceiling 

Signed  Disbursed 

Ceiling 

Signed  Disbursed 

35 372 

32 530 

20 050 

37 929 

31 521 

20 014 

25 543 
1 370 
62 285 

23 831 
 438 
56 799 

18 590 
 34 
38 673 

25 797 
 50 
63 775 

21 889 
– 
53 410 

17 634 
– 
37 648 

4.1.2.  Guarantees relating to financial assistance (borrowing and lending 

activities) 

EFSM 
SURE 
BOP 
MFA 
Euratom 
Total 

31.12.2020 
Drawn  Undrawn 
– 
47 396 
46 363 
39 503 
– 
 201 
1 335 
5 813 
 100 
 279 
47 798 
93 193 

Total 
47 396 
85 867 
 201 
7 148 
 379 
140 991 

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

EUR million 

Total 
47 394 
- 
 201 
5 314 
 414 
53 324 

4.1.3.  Guarantees given for EU financial instruments 

Horizon 2020 
Connecting Europe Facility 
Risk Sharing Finance Facility 
Other 
Total 

4.1.4.  Legal cases 

Fines 
Agriculture 
Cohesion 
Other 
Total 

31.12.2020 
1 860 
 579 
 37 
 49 
2 524 

EUR million 
31.12.2019 
1 584 
 684 
 110 
 38 
2 416 

31.12.2020 
2 985 
 66 
 341 
2 164 
5 556 

EUR million 
31.12.2019 
3 128 
 199 
 341 
2 123 
5 791 

 47 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

4.2.  CONTINGENT ASSETS 

Guarantees received: 
     Performance guarantees 
     Other guarantees 
Other contingent assets 
Total 

31.12.2020 

EUR million 
31.12.2019 

 74 
 2 
 58 
 133 

 75 
 6 
 31 
 113 

 48 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

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 
31.12.2020  31.12.2019 
249 357 

248 788 

– 

72 832 

5 620 
254 408 

10 227 
332 416 

5.1.  OUTSTANDING BUDGETARY COMMITMENTS NOT YET 

EXPENSED 

Outstanding budgetary commitments not yet expensed 

31.12.2020 
248 788 

EUR million 
31.12.2019 
249 357 

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

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) 

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 

261 889 

261 690 

261 690 

93 642 

93 498 

93 498 

– 

– 

– 

3 814 

3 813 

3 813 

359 345 

359 000 

359 000 

126 909 

100 063 

100 063 

5 749 

5 655 

5 655 

132 658 

105 718 

105 718 

4 576 
3 172 

7 747 

4 576 
3 172 

7 747 

4 576 
3 172 

7 747 

Total 

499 750 

472 466 

472 466 

49 

– 

 0 

– 

– 

 0 

 (0) 

– 

 (0) 

 (0) 
 (0) 

 (0) 

 0 

 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

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 
31.12.2020  31.12.2019 
7 680 
 601 
 438 
 223 
 844 
 440 
10 227 

4 140 
– 
– 
 172 
 894 
 414 
5 620 

Future amounts to be paid 
< 1 year  1- 5 years  > 5 years 
 410 
– 
 410 

 352 
 6 
 358 

 123 
 3 
 126 

EUR million 

Total 
 885 
 9 
 894 

50 

 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

6. 

FINANCIAL RISK MANAGEMENT 

6.1.  CURRENCY RISK 

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

Financial assets 
Available for sale financial assets 
Financial assets at fair value 
through surplus or deficit 
Loans* 
Receivables and recoverables 
Cash and cash equivalents 

Financial liabilities 
Financial liabilities at fair value 
through surplus or deficit 
Payables 

Total 

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 

USD 

GBP 

DKK 

31.12.2020 
SEK 

EUR  Other 

Total 

EUR million 

 593 

 42 

 15 

 14 

17 386 

 20 

18 069 

 (417) 

– 

– 

– 

 616 

– 

 199 

 21 
 1 
 106 
 303 

– 
1 201 
 61 
1 303 

– 
 114 
 153 
 282 

 46 
– 
72 050 
 176 
 367 
13 146 
 556  103 243 

 75 
 9 
74 197 
 656 
1 548 
15 380 
2 233  107 921 

– 

– 

– 

– 

 (1) 

 (4) 

 (4) 

 0 
 0 
 303 

 (0) 
 (0) 
1 303 

 (0) 
 (0) 
 281 

 (1) 
(33 101) 
 (1)  (33 101) 
70 142 
 556 

 (5) 
(33 107) 
 (9)  (33 111) 
74 810 

2 225 

USD 

GBP 

DKK 

31.12.2019 
SEK 

EUR  Other 

Total 

EUR million 

 577 

 62 

 17 

 (393) 

– 

– 

 17 
 8 
 93 
 302 

– 
 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 

 (0) 

– 

– 

– 

 (10) 

 (2) 

 (12) 

 (3) 
 (3) 
 299 

 (0) 
 (0) 
1 172 

– 
– 
 396 

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

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

1 717 

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: 

2020 
2019 

2020 
2019 

EUR million 

Economic result 

GBP 
 (115) 
 (101) 

DKK 
 (24) 
 (35) 

SEK 
 (49) 
 (48) 

Net assets 
GBP 
 (4) 
 (6) 

DKK 
 (1) 
 (2) 

EUR million 

SEK 
 (1) 
 (1) 

USD 
 (10) 
 (10) 

USD 
 (17) 
 (17) 

51 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

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

2020 
2019 

2020 
2019 

Economic result 

GBP 
 140 
 123 

DKK 
 30 
 42 

Net assets 
GBP 
 5 
 7 

DKK 
 2 
 2 

EUR million 

SEK 
 60 
 58 

EUR million 

SEK 
 2 
 1 

USD 
 13 
 12 

USD 
 21 
 20 

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 %). 

2020: Available for sale financial assets 

2019: Available for sale financial assets 

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

EUR million 

Effect on net assets 

 (428) 
 458 
 (395) 
 426 

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 31.12.2020 
Loans 
Receivables and recoverables 
Financial assets at fair value 
through surplus or deficit 
Total at 31.12.2019 

Total 

93 268 
74 197 

 199 

167 664 
52 637 
23 573 

Neither past 
due nor 
impaired 
93 268 
59 415 

 199 

152 881 
52 636 
9 018 

 137 

 137 

Past due but not impaired 

EUR million 

< 1 year 

1-5 years  > 5 years 

 0 
 499 

– 

 499 
 1 
2 718 

– 

– 
14 028 

– 

14 028 
– 
11 542 

– 

– 
 256 

– 

 256 
– 
 295 

– 

 295 

76 347 

61 791 

2 719 

11 542 

52 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

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

Available 
for sale* 

Financial 
assets at 
FVSD** 

31.12.2020 
Loans   Receivables 
and 
recoverables 

EUR million 

Cash 

Total 

8 111 
3 227 
1 743 
 262 
13 344 

 199 
– 
– 
– 
 199 

2 000 
35 040 
48 139 
7 964 
93 142 

53 303 
1 525 
1 880 
 140 
56 848 

12 845 
 780 
1 594 
 158 
15 377 

76 457 
40 572 
53 357 
8 525 
178 911 

– 

– 

– 

– 

 125 

2 563 

 0 

 4 

 3 

– 

2 691 

 4 

– 
13 344 

– 
 199 

 125 
93 268 

2 567 
59 415 

 3 
15 380 

2 695 
181 606 

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 

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 2020 

6.4.  LIQUIDITY RISK 

Maturity analysis of financial liabilities by remaining contractual maturity 

Borrowings 
Payables 
Financial guarantee liabilities 
Other financial liabilities 
Total at 31.12.2020 
Borrowings 
Payables 
Financial guarantee liabilities 
Other financial liabilities 
Total at 31.12.2019 

< 1 year 
(10 410) 
(33 107) 
 (90) 
 (108) 
(43 714) 
(1 273) 
(27 793) 
 (20) 
 (93) 
(29 180) 

1-5 years  > 5 years 
(62 553) 
– 
– 
 (512) 
(63 065) 
(31 978) 
– 
– 
 (640) 
(32 618) 

(20 230) 
– 
– 
 (436) 
(20 665) 
(19 312) 
– 
– 
 (421) 
(19 733) 

EUR million 
Total 
(93 192) 
(33 107) 
 (90) 
(1 055) 
(127 444) 
(52 564) 
(27 793) 
 (20) 
(1 154) 
(81 531) 

Financial instruments at fair value through surplus or deficit 

Derivative pay leg 
Derivative receive leg 
Net cash flows at 31.12.2020 
Derivative pay leg 
Derivative receive leg 
Net cash flows at 31.12.2019 

  < 1 year  1-5 years  > 5 years 
 (1) 
– 
 (1) 
 (7) 
– 
 (7) 

 (417) 
 423 
 5 
 (397) 
 395 
 (2) 

 (4) 
– 
 (4) 
 (2) 
– 
 (2) 

EUR million 
Total 
 (421) 
 423 
 1 
 (406) 
 395 
 (10) 

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 2020 

7.  RELATED PARTY DISCLOSURES 

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 2020 

8. 

EVENTS AFTER THE BALANCE SHEET DATE 

At  the  date  of  signature  of  these  accounts  no  material  issues  had  come  to  the  attention  of  or  were 
reported  to  the  Accounting  Officer  of  the  Commission  that  would  require  separate  disclosure  under  this 
section. The accounts and related notes were prepared using the most recently available information and 
this is reflected in the information presented. 

56 

 
 
Annual accounts of the European Commission 2020 

EUROPEAN COMMISSION 
FINANCIAL YEAR 2020 

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.

57 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

CONTENTS 

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

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

BUDGET REVENUE ........................................................................................... 60 

1.

2.

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

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

2.1.  MFF: BREAKDOWN & CHANGES IN COMMITMENT & PAYMENT 

APPROPRIATIONS .............................................................................. 64 

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

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

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

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

2.6. 

2.7. 

2.8. 

2.9. 

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

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

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

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

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

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

58 

 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

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 

2020 

2019 

174 306 

163 918 

(171 721) 

(157 428) 

(2 086) 

(1 615) 

78 

1 398 

7 694 

9 092 

(207) 

 75 

(1 736) 

9 092 

7 356 

 4 

1 768 

3 217 

59 

 
 
 
 
 
 
Annual accounts of the European Commission 2020 

STATEMENT OF COMPARISON OF BUDGET AND ACTUAL 
AMOUNTS 

BUDGET REVENUE 

Title 

Initial adopted 
budget 

Final adopted 
budget 

Entitlements 
established 

Revenue 

EUR million 

1  Own resources 

   11 - Sugar levies 

   12 - Customs duties 

   13 - VAT 

   14 - GNI 

151 638 

159 832 

162 382 

160 141 

– 

– 

 0 

 0 

22 157 

18 507 

22 107 

19 867 

18 945 

17 344 

17 191 

17 191 

110 536 

123 980 

122 944 

122 944 

   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 

1 270 

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 

 15 

 130 

 115 

 2 

 15 

– 

– 

2 102 

1 270 

 147 

 (8) 

3 173 

1 251 

 147 

 (8) 

3 167 

1 237 

 15 

 287 

 255 

 130 

8 864 

8 154 

 361 

17 027 

 629 

 2 

 15 

– 

 12 

– 

 6 

  Total 

153 185 

163 727 

192 998 

173 589 

60 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

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

MFF Heading 

Initial adopted 
budget 

Final adopted 
budget 

Total 
appropriations 
available 

Commitments 
made 

EUR million 

1  Smart and inclusive growth 

    1a: Competitiveness for growth and jobs 

    1b: Economic, social and territorial cohesion 

2  Sustainable growth: natural resources 

    of which: Market related expenditure and 
direct payments 

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 

O  Innovation Fund (IF) 

83 931 

25 285 

58 646 

59 907 

83 918 

25 273 

58 646 

59 956 

43 410 

43 459 

3 729 

10 262 

6 046 

– 

– 

 588 

– 

7 152 

11 350 

6 046 

– 

– 

1 236 

– 

90 870 

30 287 

60 582 

62 730 

44 855 

8 152 

12 240 

6 441 

– 

– 

1 306 

1 337 

89 563 

29 315 

60 248 

60 823 

44 315 

7 702 

11 950 

6 229 

– 

– 

1 108 

 5 

  Total 

164 462 

169 659 

183 075 

177 381 

61 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

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 

72 354 

77 278 

88 334 

83 541 

    1a: Competitiveness for growth and jobs 

22 308 

21 753 

28 726 

24 057 

    1b: Economic, social and territorial cohesion 

50 046 

55 525 

59 607 

59 484 

2  Sustainable growth: natural resources 

57 904 

58 772 

61 448 

60 595 

    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 

O 

Innovation Fund (IF) 

43 380 

43 419 

45 018 

44 456 

3 685 

8 929 

6 049 

– 

– 

 419 

– 

6 293 

10 386 

6 048 

– 

– 

1 106 

– 

7 331 

6 333 

11 928 

11 412 

6 773 

6 186 

– 

– 

1 128 

1 337 

– 

– 

1 108 

 1 

Total 

149 340 

159 883 

178 278 

169 176 

62 

 
 
 
 
 
 
 
 
 
 
 
  
 
1.

  IMPLEMENTATION OF EC BUDGET REVENUE 

Annual accounts of the European Commission 2020 

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 

151 638 

159 832 

160 092 

2 291 

162 382 

160 086 

 55 

160 141 

100 % 

2 241 

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 

– 

2 102 

3 167 

1 270 

1 270 

1 241 

 7 

 9 

3 173 

3 167 

1 251 

1 228 

 0 

 9 

3 167 

151 % 

1 237 

97 % 

 7 

 13 

 15 

 15 

 266 

 21 

 287 

 241 

 14 

 255 

1700 % 

 32 

 130 

 130 

7 320 

1 545 

8 864 

6 880 

1 274 

8 154 

6272 % 

 711 

7  Default interest and fines 

 115 

 361 

1 078 

15 949 

17 027 

 159 

 470 

 629 

174 % 

16 398 

8  Borrowing and lending operations 

9  Miscellaneous revenue 

 2 

 15 

 2 

 15 

– 

 6 

– 

 7 

– 

 12 

– 

 5 

– 

 1 

– 

 6 

0 % 

39 % 

– 

 7 

  Total 

153 185  163 727  173 169  19 829 

192 998 

171 765 

1 824 

173 589 

106 % 

19 409 

63 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
2.

  IMPLEMENTATION OF EC BUDGET EXPENDITURE  

Annual accounts of the European Commission 2020 

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

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 

Additional 
appropriat. 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

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 

83 931 

 (12) 

83 918 

 520 

6 431 

90 870 

72 354 

4 925 

77 278 

 151 

10 904 

88 334 

25 285 

 (12) 

25 273 

 3 

5 012 

30 287 

22 308 

 (555) 

21 753 

 139 

6 835 

28 726 

58 646 

– 

58 646 

 518 

1 419 

60 582 

50 046 

5 479 

55 525 

 13 

4 069 

59 607 

59 907 

 49 

59 956 

 467 

2 308 

62 730 

57 904 

 867 

58 772 

 677 

1 999 

61 448 

43 410 

 49 

43 459 

 467 

 929 

44 855 

43 380 

 39 

43 419 

 670 

 929 

45 018 

MFF Heading 

1  Smart and inclusive growth 
    1a: Competitiveness for 
growth and jobs 
    1b: Economic, social and 
territorial cohesion 
Sustainable growth: natural 
resources 
    of which: Market related 
expenditure and direct 
payments 

2 

3  Security and citizenship 

3 729 

3 423 

7 152 

– 

1 000 

8 152 

4  Global Europe 

5  Administration 

6  Compensations 

8 

Negative reserve and deficit 
carried over from the previous 
financial year  
9  Special Instruments 

10 262 

1 089 

11 350 

 47 

6 046 

 (0) 

6 046 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 843 

 395 

12 240 

6 441 

– 

– 

– 

– 

O 

Innovation Fund (IF) 

– 

– 

– 

– 

1 337 

 588 

 649 

1 236 

 49 

 21 

1 306 

1 337 

 419 

 688 

1 106 

– 

– 

– 

3 685 

8 929 

6 049 

– 

– 

2 607 

6 293 

1 457 

10 386 

 9 

 38 

 (1) 

6 048 

 329 

– 

– 

– 

– 

1 030 

1 503 

 396 

– 

– 

7 331 

11 928 

6 773 

– 

– 

 21 

1 337 

1 128 

1 337 

– 

– 

 1 

– 

Total 

164 462 

5 197  169 659  1 083  12 334  183 075  149 340 

10 543  159 883 

1 205 

17 190 

178 278 

64 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.2.  MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Commission 2020 

MFF Heading 

Total 
appropr. 
available 

Commitments made 

Appropriat. carried over 
to 2021 

Appropriations lapsing 

EUR million 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

assigned 
revenue 

carry-
overs by 
decision 

Total 

from final 
adopted 
budget 

from 
carry- 
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

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

7 

8 

9=7+8 

10 

11 

12 

1  Smart and inclusive growth 
    1a: Competitiveness for 
growth and jobs 
    1b: Economic, social and 
territorial cohesion 
Sustainable growth: natural 
resources 
    of which: Market related 
expenditure and direct 
payments 

2 

90 870 

83 890 

 520 

5 152 

89 563  99 % 

1 219 

 22 

1 241 

30 287 

25 254 

 3 

4 058 

29 315  97 % 

 954 

 14 

 967 

60 582 

58 636 

 518 

1 095 

60 248  99 % 

 265 

 8 

 274 

62 730 

59 475 

 463 

 886 

60 823  97 % 

 445 

 475 

 920 

44 855 

42 979 

 463 

 873 

44 315  99 % 

 56 

 475 

 531 

3  Security and citizenship 

8 152 

7 152 

– 

4  Global Europe 

5  Administration 

6  Compensations 

8 

Negative reserve and deficit 
carried over from the 
previous financial year  

9  Special Instruments 

O 

Innovation Fund (IF) 

12 240 

11 349 

 47 

6 441 

5 984 

– 

– 

– 

– 

– 

– 

– 

1 306 

1 337 

1 059 

 49 

– 

– 

– 

– 

– 

 5 

 550 

 555 

 245 

7 702  94 % 

11 950  98 % 

6 229  97 % 

– 

– 

0 % 

0 % 

 450 

 288 

 149 

– 

– 

 450 

 288 

 149 

– 

– 

– 

– 

– 

– 

– 

– 

– 

1 108  85 % 

 13 

 5 

0 % 

1 332 

 13 

 177 

1 332 

– 

 6 

 5 

 1 

 6 

 5 

 1 

 1 

 62 

– 

– 

Total 

13=10+ 
11+12 

– 

– 

– 

 59 

 0 

 59 

 65 

 5 

 60 

 4 

 976 

 986 

 4 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

 0 

 1 

– 

– 

 8 

– 

 9 

 1 

 2 

 62 

– 

– 

 185 

– 

Total 

183 075  168 909  1 078 

7 393  177 381  97 % 

3 896 

 497 

4 393 

 253 

 4 

1 044 

1 302 

65 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.3.  MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS 

Annual accounts of the European Commission 2020 

MFF Heading 

Total 
appropr. 
available 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Payments made 

Appropriations carried over to 
2021 

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 

3  Security and citizenship 

7 331 

5 896 

 7 

 430 

6 333 

86 % 

1 

2 

Smart and inclusive 
growth 
    1a: Competitiveness 
for growth and jobs 
    1b: Economic, social 
and territorial cohesion 
Sustainable growth: 
natural resources 
    of which: Market 
related expenditure and 
direct payments 

4  Global Europe 

5  Administration 

6  Compensations 

8 

Negative reserve and 
deficit carried over from 
the previous financial 
year  

9  Special Instruments 

O  Innovation Fund (IF) 

88 334 

77 097 

 129 

6 316 

83 541 

95 % 

 149 

 12 

4 579 

4 740 

 21 

 23 

28 726 

21 587 

 118 

2 352 

24 057 

84 % 

 134 

 12 

4 474 

4 620 

 19 

 21 

59 607 

55 509 

 11 

3 964 

59 484  100 % 

 15 

– 

 105 

 120 

61 448 

58 263 

 670 

1 662 

60 595 

99 % 

 24 

 475 

 338 

 837 

45 018 

42 919 

 664 

 873 

44 456 

99 % 

 18 

 475 

 56 

 548 

 11 

 37 

 381 

 17 

11 928 

10 328 

 35 

1 049 

11 412 

96 % 

6 773 

5 676 

 308 

 202 

6 186 

91 % 

 311 

– 

– 

– 

– 

1 128 

1 337 

1 106 

– 

– 

– 

 0 

– 

– 

– 

 2 

 1 

– 

0 % 

– 

– 

0 % 

 0 

1 108 

98 % 

 1 

0 % 

 0 

– 

 0 

– 

– 

– 

– 

 600 

 454 

 192 

– 

– 

 991 

 508 

 503 

– 

– 

 13 

 13 

1 336 

1 336 

 1 

 9 

 8 

 5 

 4 

 2 

 6 

 6 

 2 

 4 

 62 

 21 

– 

– 

 0 

– 

– 

– 

 0 

– 

 9 

 9 

 0 

 0 

 0 

 0 

 1 

 2 

– 

– 

 6 

– 

 53 

 49 

 4 

 16 

 14 

 7 

 8 

 84 

– 

– 

 6 

– 

  Total 

178 278  158 366  1 149 

9 661  169 176  95 % 

 532 

 885 

7 511 

8 928 

 101 

 56 

 18 

 174 

66 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.4.  MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) 

Annual accounts of the European Commission 2020 

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 

Commit. 
made 
during the 
year 

Payments 

Cancellation of 
commitm. 
which cannot 
be carried-over 

Commitm. 
outstanding 
at year-end 

EUR million 

Total 
commitm. 
outstanding at 
end of the 
year 

1 

2 

3 

4=1+2+3 

5 

6 

7 

8=5+6+7 

9=4+8 

1  Smart and inclusive growth 

220 627 

(1 875) 

(71 673) 

147 079 

89 563 

(11 868) 

    1a: Competitiveness for growth 
and jobs 
    1b: Economic, social and 
territorial cohesion 
Sustainable growth: natural 
resources 
    of which: Market related 
expenditure and direct payments 

2 

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 

O 

Innovation Fund (IF) 

40 300 

 (954) 

(14 384) 

24 962 

29 315 

(9 673) 

180 327 

 (921) 

(57 289) 

122 117 

60 248 

(2 195) 

40 876 

 432 

6 183 

29 154 

 342 

– 

– 

 1 

– 

 (122) 

(15 695) 

25 058 

60 823 

(44 900) 

 (5) 

 (262) 

 165 

44 315 

(44 193) 

 (119) 

(2 225) 

3 839 

7 702 

(4 108) 

 (672) 

(7 862) 

20 620 

11 950 

(3 550) 

 (22) 

 (317) 

– 

– 

 (0) 

– 

– 

– 

 (0) 

– 

 3 

– 

– 

– 

– 

6 229 

(5 869) 

– 

– 

– 

– 

1 108 

(1 108) 

 5 

 (1) 

 (6) 

 (5) 

 (0) 

– 

– 

– 

 (1) 

 (0) 

– 

– 

– 

– 

77 689 

19 636 

224 769 

44 598 

58 053 

180 170 

15 923 

40 982 

 122 

3 594 

8 400 

 361 

– 

– 

 0 

 4 

 286 

7 433 

29 020 

 364 

– 

– 

 0 

 4 

Total 

297 183 

(2 811)  (97 773) 

196 599  177 381  (71 403) 

 (7) 

105 971 

302 570 

67 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.5.  MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN 

Annual accounts of the European Commission 2020 

MFF Heading 

<2014 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

Total 

1  Smart and inclusive growth 

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 

O 

Innovation Fund (IF) 

Total 

3 347 

 120 

 24 

 878 

 271 

 9 

1 741 

1 286 

 34 

1 339 

 607 

1 140 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

4 079 

21 655 

46 203 

68 942 

77 924 

224 769 

1 209 

 231 

2 128 

2 388 

 637 

3 351 

– 

– 

– 

– 

– 

 0 

– 

– 

– 

– 

7 633 

12 142 

15 934 

40 982 

1 251 

4 734 

1 652 

7 298 

 0 

– 

– 

– 

– 

 3 

– 

– 

 0 

– 

3 594 

8 423 

 361 

7 433 

29 020 

 364 

– 

– 

 0 

 4 

– 

– 

 0 

 4 

4 830 

1 765 

4 201 

7 646 

28 030 

59 821 

90 037 

106 240 

302 570 

EUR million 

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.

68 

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

  APPROPRIATIONS 

Annual accounts of the European Commission 2020 

Policy area 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carried
-over 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

Total 
appropr. 
available 

6=3+ 
4+5 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carried
-over 

Assigned 
revenue 

7 

8 

9=7+8 

10 

11 

EUR million 

Total 
appropr. 
available 

12=9+10 
+11 

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

02 

 551 

 (21) 

 530 

3 204 

 (2) 

3 202 

03  Competition 

 116 

 1 

 117 

– 

– 

– 

 249 

 252 

 779 

1 501 

 (15) 

1 486 

3 454 

2 707 

 6 

 124 

 116 

 45 

 1 

2 752 

 117 

14 882 

 693 

15 574 

 243 

 729 

16 546 

13 394 

1 500 

14 894 

 4 

 16 

 13 

 11 

 370 

 455 

 6 

1 861 

3 222 

 136 

 866 

15 772 

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 

58 699 

 (38) 

58 661 

 467 

2 280 

61 408 

57 008 

 735 

57 742 

 677 

2 027 

60 447 

4 871 

 556 

7 988 

2 684 

 453 

1 097 

 (0) 

 (3) 

 (0) 

 (1) 

– 

 67 

4 871 

 553 

7 988 

2 684 

 453 

1 163 

 114 

 (8) 

 106 

– 

– 

– 

– 

 3 

– 

– 

 157 

 12 

5 028 

3 065 

 565 

 411 

 136 

 23 

3 202 

 434 

2 209 

10 197 

7 094 

 (129) 

6 964 

 461 

 630 

 207 

3 145 

2 311 

 26 

2 337 

1 085 

1 370 

 446 

 905 

 (14) 

 57 

 433 

 961 

 5 

 5 

 36 

 11 

 66 

 2 

 159 

 10 

3 366 

 449 

3 341 

10 341 

 629 

 558 

 153 

2 976 

1 056 

1 117 

 4 

 110 

 115 

 (8) 

 107 

 4 

 4 

 115 

13  Regional and urban policy 

42 472 

 303 

42 775 

 324 

 798 

43 896 

36 055 

4 612 

40 668 

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 

 177 

4 829 

 219 

 669 

2 678 

 907 

 120 

 1 

 0 

 0 

 (42) 

3 088 

 (24) 

 (0) 

 178 

4 829 

 220 

 627 

5 766 

 883 

 119 

– 

– 

– 

– 

– 

– 

– 

 14 

 823 

 12 

 34 

 192 

 170 

5 653 

4 457 

 231 

 661 

 217 

 625 

 23 

 (25) 

 (14) 

 (29) 

 193 

4 432 

 203 

 596 

 972 

6 737 

2 787 

2 509 

5 296 

 966 

 123 

 809 

 119 

 9 

 (1) 

 818 

 118 

 83 

 3 

69 

 11 

 5 

 18 

 13 

 9 

 7 

 4 

 3 

3 319 

43 998 

 17 

1 082 

 11 

 33 

 216 

5 533 

 228 

 638 

1 030 

6 333 

 80 

 3 

 902 

 124 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

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 

3 819 

 (67) 

3 753 

4 249 

 300 

4 549 

 1 

– 

1 325 

1 353 

2 678 

 46 

 85 

 262 

1 169 

 73 

 20 

 162 

 (0) 

 1 

 44 

 (0) 

 (0) 

 (1) 

 84 

 263 

1 213 

 73 

 20 

 161 

2 133 

 (18) 

2 115 

 411 

2 399 

 282 

 181 

 607 

 0 

 (0) 

 3 

 (1) 

 (430) 

 411 

2 399 

 285 

 180 

 177 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 327 

4 081 

3 321 

 139 

3 459 

 21 

 377 

3 857 

 153 

4 702 

3 365 

 995 

4 360 

 13 

 399 

4 772 

 220 

1 432 

1 169 

1 218 

 158 

 220 

1 596 

 41 

 1 

 12 

 8 

 1 

 20 

 0 

 70 

 201 

 8 

2 765 

1 347 

 544 

1 891 

 85 

 275 

 81 

 263 

 81 

 21 

 73 

 20 

 264 

 20 

 (1) 

 1 

 49 

 (0) 

 (0) 

 80 

 73 

 20 

 181 

 159 

 (11) 

 148 

2 115 

2 133 

 (18) 

2 115 

 481 

 411 

 0 

 411 

 22 

2 600 

1 870 

 (206) 

1 664 

 8 

 7 

 16 

 1 

 5 

– 

 5 

 4 

 4 

– 

 350 

2 249 

 1 

 12 

 87 

 295 

 8 

 1 

 28 

 0 

 70 

 223 

 8 

1 338 

– 

 97 

 22 

 182 

2 115 

 503 

1 893 

 311 

1 470 

– 

 293 

1 338 

1 518 

– 

 177 

 278 

 115 

 424 

 20 

 13 

 (424) 

 298 

 128 

– 

Policy area 

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 

164 462 

5 197  169 659  1 083  12 334  183 075  149 340 

10 543  159 883  1 205 

17 190 

178 278 

70 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.7.  POLICY AREA: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Commission 2020 

Commitments made 

Policy area 

Total 
appropr. 
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

Total 

% 

EUR million 

Appropriations lapsing 

Appropriations carried over 
to 2021 

assigned 
revenue 

carry-
overs by 
decision 

Total 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

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 

 779 

 527 

3 454 

3 200 

03  Competition 

 124 

 116 

– 

– 

– 

 237 

 764 

98 % 

 206 

3 406 

99 % 

 3 

 120 

97 % 

 12 

 46 

 3 

04 

05 

Employment, social affairs 
and inclusion 
Agriculture and rural 
development 

16 546 

15 561 

 243 

 519 

16 322 

99 % 

 196 

61 408 

58 179 

 463 

1 042 

59 684 

97 % 

 335 

 475 

 810 

06  Mobility and transport 

5 028 

4 870 

07  Environment 

 565 

 553 

08  Research and innovation 

10 197 

7 988 

09 

Communications networks, 
content and technology 

3 145 

2 682 

10  Direct research 

1 085 

 441 

11 

12 

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

1 370 

1 163 

 110 

 106 

– 

– 

– 

– 

 3 

– 

– 

 116 

4 986 

99 % 

 10 

 562 

100 % 

 41 

 2 

2 077 

10 065 

99 % 

 132 

 454 

3 136 

100 % 

 7 

– 

– 

– 

– 

 99 

 542 

50 % 

 531 

 12 

 4 

 2 

1 166 

85 % 

 130 

 107 

97 % 

 2 

13  Regional and urban policy 

43 896 

42 773 

 324 

 645 

43 742 

100 % 

 100 

14 

Taxation and customs 
union 

 192 

 177 

15  Education and culture 

5 653 

4 825 

16  Communication 

 231 

 219 

17  Health and food safety 

 661 

 626 

18  Migration and home affairs 

6 737 

5 765 

– 

– 

– 

– 

– 

 12 

 189 

98 % 

 2 

 716 

5 541 

98 % 

 108 

 7 

 28 

 225 

97 % 

 654 

99 % 

 5 

 6 

 530 

6 294 

93 % 

 442 

71 

 1 

– 

– 

 9 

 13 

 46 

 3 

 205 

 41 

 2 

 132 

 7 

 543 

 130 

 2 

 100 

 2 

 108 

 5 

 6 

 442 

– 

– 

– 

– 

– 

– 

– 

– 

 2 

 2 

 1 

 5 

 7 

 1 

 1 

 0 

 1 

 0 

 1 

 1 

 1 

 1 

 4 

 1 

 1 

 1 

– 

– 

– 

– 

 0 

 0 

 0 

 14 

 4 

 903 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

 0 

 0 

 0 

 74 

 0 

 53 

 0 

 0 

 0 

 0 

 0 

Total 

13=10+ 
11+12 

 2 

 2 

 1 

 19 

 914 

 1 

 1 

 0 

 1 

 0 

 74 

 1 

 54 

 1 

 4 

 1 

 1 

 1 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

Commitments made 

Policy area 

Total 
appropr. 
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

Total 

% 

EUR million 

Appropriations lapsing 

Appropriations carried over 
to 2021 

assigned 
revenue 

carry-
overs by 
decision 

Total 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

5=2+ 
3+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

19  Foreign policy instruments 

20  Trade 

21 

22 

23 

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

 966 

 123 

 883 

 116 

4 081 

3 743 

4 702 

4 545 

– 

– 

 1 

– 

2 765 

2 678 

 46 

24  Fight against fraud 

 85 

 84 

25 

26 

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

27  Budget 

28  Audit 

29  Statistics 

30 

Pensions and related 
expenditure 

 275 

 255 

1 432 

1 210 

 81 

 21 

 72 

 20 

 181 

 159 

2 115 

2 106 

31  Language services 

 481 

 407 

32  Energy 

2 600 

2 397 

33  Justice and consumers 

 293 

 283 

34  Climate action 

1 518 

 180 

40  Reserves 

 177 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 54 

 2 

 937 

97 % 

 118 

96 % 

 28 

 2 

 207 

3 951 

97 % 

 120 

 37 

 31 

 1 

 7 

4 582 

97 % 

 116 

2 755 

100 % 

 10 

 84 

99 % 

 262 

95 % 

 0 

 5 

 137 

1 347 

94 % 

 82 

 77 

96 % 

 20 

96 % 

 3 

 0 

 168 

93 % 

 12 

2 106 

100 % 

 51 

 459 

95 % 

 137 

2 534 

97 % 

– 

 19 

 64 

 4 

 288 

98 % 

 185 

12 % 

1 332 

– 

0 % 

– 

 5 

 1 

 8 

– 

 4 

 6 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 28 

 2 

 1 

 3 

 120 

 10 

 116 

 10 

 0 

 5 

 82 

 3 

 0 

 12 

– 

 19 

 64 

 4 

1 332 

 4 

 0 

 1 

 8 

 3 

 1 

 0 

 1 

 8 

 4 

 2 

 1 

 0 

– 

 177 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

– 

Total 

183 075  168 909  1 078 

7 393  177 381 

97 % 

3 896 

 497 

4 393 

 253 

 4 

1 044 

1 302 

72 

Total 

13=10+ 
11+12 

 1 

 3 

 10 

 4 

 0 

 1 

 8 

 3 

 1 

 0 

 1 

 8 

 4 

 2 

 1 

 0 

 177 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
2.8.  POLICY AREA: IMPLEMENTATION OF PAYMENT APPROPRIATIONS 

Annual accounts of the European Commission 2020 

Policy area 

Total 
appropr. 
available 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Payments made 

Appropriations carried over to 
2021 

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 

1 861 

1 479 

 3 

 339 

1 822  98 % 

 5 

 0 

 31 

 36 

 2 

 0 

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 

3 222 

2 737 

 13 

 105 

2 855  89 % 

 13 

 350 

 363 

 2 

 2 

– 

– 

– 

 13 

 11 

 3 

 16 

 156 

 167 

 1 

 4 

60 447 

57 233 

 671 

1 600 

59 503  98 % 

 24 

 475 

 427 

 926 

 10 

03  Competition 

 136 

 104 

 12 

 3 

 119  87 % 

15 772 

14 879 

 8 

 696 

15 583  99 % 

06  Mobility and transport 

3 366 

3 192 

 449 

 430 

 4 

 4 

 44 

 8 

3 239  96 % 

 443  99 % 

1 056 

 359 

 54 

 90 

 503  48 % 

 61 

 12 

 468 

 541 

10 341 

6 924 

 33 

1 262 

8 219  79 % 

2 976 

2 321 

 10 

 123 

2 453  82 % 

1 117 

 958 

 2 

 111 

1 071  96 % 

 115 

 102 

 3 

 2 

 107  93 % 

43 998 

40 654 

 10 

3 317 

43 981  100 % 

 6 

 3 

 40 

 12 

– 

– 

– 

– 

 115 

 122 

 2 

 5 

2 078 

2 118 

 505 

 517 

 3 

 5 

 13 

 7 

 18 

 13 

 9 

 9 

– 

– 

– 

– 

– 

– 

– 

 42 

 45 

 2 

 2 

 8 

 7 

 15 

 14 

 602 

 620 

 6 

 7 

 19 

 15 

 379 

 622 

1 009 

 216 

 186 

15  Education and culture 

5 533 

4 410 

16  Communication 

17  Health and food safety 
Migration and home 
affairs 

18 

 228 

 638 

 189 

 586 

6 333 

4 907 

 5 

 17 

 12 

 7 

 6 

 10 

 200  93 % 

 479 

4 907  89 % 

 6 

 26 

 207  91 % 

 620  97 % 

 408 

5 321  84 % 

73 

 0 

 0 

 0 

 14 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 2 

 4 

 2 

 21 

 17 

 5 

 1 

 4 

 6 

 13 

 1 

 1 

 2 

 1 

 6 

 2 

 3 

 2 

 0 

 3 

 7 

 1 

 1 

 3 

 1 

 11 

 0 

 0 

 1 

 0 

 1 

 1 

 1 

 1 

 3 

 1 

 0 

 5 

 1 

 0 

 1 

 1 

 1 

 4 

 1 

 2 

 1 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

Policy area 

Total 
appropr. 
available 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Payments made 

Appropriations carried over to 
2021 

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 

21 

22 

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 

19 

Foreign policy 
instruments 

20  Trade 

 902 

 124 

 813 

 111 

 3 

 3 

 65 

 2 

 881  98 % 

 116  93 % 

 4 

 4 

– 

– 

– 

– 

 15 

 1 

 19 

 5 

 1 

 3 

 159 

 181 

 12 

 165 

 178 

3 857 

3 425 

 19 

 217 

3 662  95 % 

 22 

4 772 

4 342 

 12 

 234 

4 588  96 % 

 13 

2 249 

1 867 

 87 

 70 

 7 

 6 

 295 

 236 

 19 

 1 

 6 

 314 

2 188  97 % 

 77  89 % 

 261  88 % 

 20 

 7 

 7 

 17 

 36 

– 

– 

 0 

 6 

 60 

 7 

 26 

1 596 

1 073 

 151 

 107 

1 331  83 % 

 141 

 0 

 112 

 254 

 97 

 22 

 66 

 19 

 182 

 142 

2 115 

2 106 

 16 

 1 

 4 

– 

31  Language services 

 503 

 385 

 21 

32  Energy 

1 893 

1 649 

33  Justice and consumers 

34  Climate action 

40  Reserves 

 311 

1 470 

– 

 288 

 124 

– 

 5 

 3 

 4 

– 

 3 

 1 

 7 

– 

 46 

 24 

 4 

 2 

– 

 85  87 % 

 20  92 % 

 153  84 % 

2 106  100 % 

 6 

 1 

 5 

 0 

 451  90 % 

 22 

1 677  89 % 

 295  95 % 

 130 

9 % 

– 

0 % 

 7 

 4 

 4 

– 

– 

– 

– 

– 

– 

– 

 2 

– 

– 

 5 

 1 

 21 

– 

 25 

 11 

 1 

 26 

 0 

 47 

 200 

 206 

 4 

 10 

1 336 

1 340 

– 

– 

 0 

 0 

 2 

 1 

 1 

 1 

 1 

 7 

 0 

 0 

 1 

– 

 2 

 1 

 1 

 0 

– 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 1 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

– 

 1 

 3 

 14 

 5 

 1 

 3 

 9 

 12 

 1 

 0 

 3 

 8 

 5 

 9 

 6 

 0 

– 

 4 

 0 

 2 

 8 

 3 

 1 

 0 

 1 

 8 

 4 

 9 

 5 

 0 

– 

178 278  158 366  1 149 

9 661  169 176  95 % 

 532 

 885 

7 511  8 928 

 101 

 56 

 18 

 174 

74 

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

Annual accounts of the European Commission 2020 

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 

 (42) 

(1 257) 

 877 

 764 

 (565) 

– 

 199 

1 076 

 (32) 

(1 877) 

1 379 

3 406 

 (978) 

 (1) 

2 427 

3 806 

EUR million 

Total 
commitm. 
outstanding 
at end of the 
year 

2 176 

3 289 

 13 

45 418 

36 637 

12 451 

1 431 

15 493 

3 088 

 230 

3 465 

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 
Migration and home 
affairs 

18 

19  Foreign policy instruments 

 (0) 

 (12) 

– 

 120 

 (107) 

 (558) 

(15 119) 

29 741 

16 322 

 (464) 

 (27) 

(14 668) 

21 942 

59 684 

(44 835) 

 (195) 

(2 964) 

 (19) 

 (319) 

 (365) 

(5 507) 

9 293 

1 093 

9 621 

4 986 

 (275) 

 562 

 (124) 

10 065 

(2 711) 

 (114) 

(1 108) 

1 866 

3 136 

(1 345) 

 (26) 

 (134) 

 70 

 542 

 (369) 

 (76) 

 (868) 

2 521 

1 166 

 (203) 

– 

– 

 (0) 

 (1) 

– 

 (2) 

 (0) 

 (0) 

– 

– 

 13 

 13 

15 858 

45 599 

14 849 

4 710 

 439 

7 351 

36 790 

14 003 

1 531 

16 972 

1 791 

3 657 

 173 

 963 

 13 

 243 

3 484 

 14 

 15 

 (1) 

 (12) 

 2 

 107 

 (95) 

129 126 

 (319) 

(40 873) 

87 934 

43 742 

(3 108) 

 (0) 

40 633 

128 568 

 157 

3 218 

 68 

 514 

5 368 

1 107 

 (3) 

 (102) 

 52 

 189 

 (99) 

 (123) 

(1 305) 

1 791 

5 541 

(3 602) 

 (5) 

 (54) 

 (46) 

 (232) 

 10 

 236 

 225 

 654 

 (153) 

 (388) 

 (48) 

(1 904) 

3 416 

6 294 

(3 417) 

 (118) 

 (410) 

 579 

 937 

 (471) 

– 

 (0) 

 (0) 

– 

– 

 (0) 

 90 

1 939 

 72 

 266 

2 877 

 465 

 142 

3 729 

 82 

 502 

6 293 

1 045 

75 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

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 

EUR million 

Total 
commitm. 
outstanding 
at end of the 
year 

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 

 24 

10 040 

15 746 

1 320 

 34 

 22 

 202 

 16 

 1 

 132 

– 

 22 

5 681 

 248 

 433 

– 

 (1) 

 (15) 

 8 

 118 

 (101) 

 (212) 

(2 805) 

7 022 

3 951 

 (856) 

 (273) 

(3 618) 

11 854 

4 582 

 (970) 

– 

– 

– 

 17 

 25 

3 095 

10 117 

3 611 

15 466 

 (47) 

 (831) 

 (6) 

 (15) 

 442 

 13 

 84 

 (62) 

2 755 

(1 357) 

 (0) 

1 398 

1 840 

 (183) 

 10 

1 347 

(1 148) 

 (0) 

 199 

 (1) 

 (20) 

 1 

 262 

 (241) 

 (9) 

 (0) 

 (0) 

 (12) 

– 

 (16) 

 (1) 

 (57) 

– 

 (2) 

 (21) 

– 

– 

 63 

– 

– 

 77 

 20 

 168 

 (69) 

 (19) 

 (96) 

2 106 

(2 106) 

 459 

 (431) 

 (93) 

(1 274) 

4 313 

2 534 

 (403) 

 (35) 

 (3) 

– 

 (97) 

 (95) 

– 

 116 

 335 

– 

 288 

 185 

– 

 (198) 

 (35) 

– 

2 129 

6 443 

 90 

 151 

– 

 206 

 485 

– 

 35 

 21 

 209 

 9 

 1 

 135 

– 

 28 

– 

– 

 23 

 20 

 9 

 1 

 72 

– 

 28 

– 

– 

– 

 (0) 

– 

 (1) 

– 

– 

– 

Total 

297 183 

(2 811)  (97 773) 

196 599 

177 381  (71 403) 

 (7) 

105 971 

302 570 

76 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.10.  POLICY AREA: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN 

Annual accounts of the European Commission 2020 

Policy area 

<2014 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

Total 

EUR million 

01  Economic and financial affairs 

02 

Internal market, industry, entrepreneurship and 
SMEs 

03  Competition 

04  Employment, social affairs and inclusion 

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 

 95 

 20 

– 

 489 

 58 

 2 

 60 

 198 

 9 

 11 

 60 

– 

13  Regional and urban policy 

2 360 

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 

– 

 9 

– 

 2 

 25 

 7 

– 

 337 

 753 

– 

– 

 16 

– 

 147 

 198 

 188 

 48 

 294 

 43 

 4 

 2 

 0 

 12 

 0 

 21 

 0 

 7 

 5 

 19 

– 

 228 

 352 

 2 

– 

 54 

– 

 3 

 96 

– 

 4 

 208 

– 

 596 

 327 

– 

 179 

 659 

– 

 199 

2 427 

 13 

1 076 

3 806 

 13 

 425 

 867 

4 213 

9 337 

14 262 

15 858 

45 599 

1 153 

1 087 

1 916 

6 488 

11 040 

14 849 

36 790 

 327 

 108 

 560 

 55 

 2 

 2 

– 

1 090 

1 407 

2 398 

3 880 

4 710 

14 003 

 82 

 853 

 152 

 1 

 4 

– 

 132 

1 507 

 171 

 10 

 480 

 0 

 398 

 257 

 445 

1 531 

2 362 

3 788 

7 411 

16 972 

 435 

 8 

 826 

 34 

 944 

1 029 

 0 

 1 

1 966 

3 657 

 173 

 963 

 13 

 243 

3 484 

 14 

 114 

 684 

12 993 

29 157 

42 615 

40 633 

128 568 

 1 

 89 

 0 

 15 

 1 

 332 

 0 

 31 

 12 

 446 

 1 

 62 

 36 

 861 

 9 

 112 

 90 

 142 

1 939 

3 729 

 72 

 266 

 213 

 605 

1 147 

1 391 

2 878 

 35 

 1 

 77 

 2 

 152 

 275 

 2 

 4 

 465 

 17 

 632 

1 313 

1 634 

2 425 

3 118 

10 117 

1 435 

1 757 

2 676 

4 196 

3 611 

15 466 

 1 

 53 

 89 

 296 

1 398 

1 840 

 82 

 502 

6 293 

1 045 

 25 

 0 

 32 

 0 

 8 

 29 

 15 

 0 

 431 

 685 

 1 

77 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

EUR million 

Policy area 

<2014 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

Total 

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 

– 

– 

 0 

– 

– 

 1 

– 

 0 

– 

– 

 4 

– 

– 

 5 

 0 

 1 

– 

– 

 15 

– 

– 

 7 

 1 

 8 

– 

– 

 44 

 0 

 0 

 23 

 20 

 35 

 21 

 199 

 209 

 9 

 1 

 72 

 (0) 

 28 

 9 

 1 

 135 

– 

 28 

 335 

 155 

 166 

 235 

 731 

1 024 

1 668 

2 129 

6 443 

– 

– 

– 

 0 

 22 

– 

 8 

 27 

– 

 12 

 57 

– 

 24 

 58 

– 

 25 

 80 

– 

 48 

 86 

– 

 90 

 155 

– 

 206 

 485 

– 

4 830 

1 765 

4 201 

7 646 

28 030 

59 821 

90 037 

106 240 

302 570 

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.

78 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2020 

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 

2020 
57 349 

EUR million 
2019 
4 605 

(1 289) 
3 878 
(48 762) 

8 213 
3 411 
 (457) 
(17 524) 
(1 416) 

2 642 

3 882 
(4 493) 

(6 184) 
8 648 
3 341 

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

1 238 

3 865 
(3 107) 

BUDGET RESULT OF THE YEAR 

5 434 

6 839 

BUDGET RESULT OTHER INSTITUTIONS 

(3 666) 

(3 622) 

BUDGET RESULT OF THE YEAR (EU) 

1 768 

3 217 

79