Communication from the Commission to the European Parliament, the Council and the Court of Auditors - Annual Accounts of the European Union 2020
Date: 2021-06-30
Institutions: Directorate-General for Budget, European Commission
Subjects: European Union, 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) 381 final    Communication from the Commission to the European Parliament, the Council and the Court of Auditors - Annual Accounts of the European Union 2020  
 
 
CONTENTS 

FOREWORD ............................................................................................... 2 

FINANCIAL HIGHLIGHTS OF THE YEAR ......................................................... 3 

NOTE ACCOMPANYING THE CONSOLIDATED ACCOUNTS ............................... 35 

CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES ............ 36 

BALANCE SHEET ................................................................................... 38 

STATEMENT OF FINANCIAL PERFORMANCE .............................................. 39 

CASHFLOW STATEMENT ......................................................................... 40 

STATEMENT OF CHANGES IN NET ASSETS ............................................... 41 

NOTES TO THE FINANCIAL STATEMENTS ................................................. 42 

BUDGETARY IMPLEMENTATION REPORTS AND EXPLANATORY NOTES ........... 125 

GLOSSARY ............................................................................................ 186 

LIST OF ABBREVIATIONS ........................................................................ 190 

 
 
 
 
 
Annual accounts of the European Union 2020 

FOREWORD 

2020  has  been  an 
extraordinary  year  by 
any  measure:  Facing 
economic  and  political 
challenges  caused  by 
coronavirus 
the 
pandemic, 
the 
European Union had to 
with 
react 
unprecedented 
solutions  and  speed. 
The European Commission has been  working on 
all fronts to save lives and livelihoods, to support 
national  health  systems  and  companies,  to 
foster 
resilience.  We  have 
mobilised  all  means  at  our  disposal  to  help 
Member  States 
their  national 
coordinate 
responses  and  to  help  those  most  affected  by 
the  crises,  using  instruments  such  as  the 
Coronavirus  Response  Investment  Initiative  or 
SURE  (Support  to  mitigate  Unemployment 
Risks  in  an  Emergency).  Under  SURE  an 
amount of EUR 39.5 billion out of a total of EUR 
100  billion  has  already  been  disbursed  in  2020 
to  affected  Member  States  to  address  sudden 
increases 
the 
in  public  expenditure 
preservation of employment. Further substantial 
disbursements followed in 2021. 

recovery  and 

for 

on 

its 

delivered 

While fighting the pandemic, the European Union 
nevertheless 
policy 
objectives,  with  a  focus  on  young  people,  jobs 
and growth, as well as climate change. Measures 
to  support  economic  growth  and  reduce  the 
economic  gaps  between  regions  amounted  to 
nearly  half  of  the  funds  committed.  EU  funding 
contributed  EUR  29.7  billion  to  less  developed 
regions  and  EUR  16.4  billion  to  research  and 
innovation  under  Horizon  2020.  Furthermore, 
the 2020 EU budget helped agriculture and rural 
Agricultural 
areas 
Guarantee  Fund  and  Agricultural  Fund  for  Rural 
Development with total commitments of EUR 59 
billion. The 2020 budget was the final budget of 
the  current  multiannual  financial  framework, 
with  budget  implementation  totalling  EUR  181.7 
billion in commitments made  –  adding value  for 
all Europeans.  

European 

under 

the 

Finally, 2020 was also the year of the agreement 
on the EU’s long-term budget for 2021-2027 
of EUR 1,074 trillion (in 2018 prices), boosted by 
EUR  750  billion  through  NextGenerationEU,  a 
temporary  instrument  to  kickstart  the  recovery 
and  steer 
towards  a  more 
sustainable and digital Europe. 

the  transition 

including 

It  is  my  pleasure  to  present  the  2020  annual 
accounts of the European Union. They provide a 
complete  overview  of  EU  finances  and  the 
implementation  of  the  EU  budget  for  the  last 
information  on  contingent 
year, 
liabilities, 
financial  commitments  and  other 
obligations  of  the  Union.  The  consolidated 
annual accounts of the European Union are part 
of the Commission’s integrated financial and 
accountability  reporting  package  and  form 
an essential part of our highly developed system 
of financial accountability. 

Johannes Hahn 

Commissioner for Budget and Human 
Resources 

2 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

FINANCIAL HIGHLIGHTS OF THE YEAR 

The  objective  of  the  Financial  Statements  Analysis,  which  has  been  prepared  on  the  basis  of  the 
principles  outlined  in  the  IPSASB  Recommended  Practice  Guideline  (RPG)  2  ‘Financial  Statement 
Discussion and Analysis’ is to assist readers to understand how the operational, financial and investment 
activities of the EU are reflected in the different elements of the consolidated financial statements of the 
EU. The information presented in this section has not been audited 

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 Union 2020 

CONTENTS 

1. 

2. 

KEY FIGURES 2020 .................................................................................... 5 

CORONAVIRUS RESPONSE .......................................................................... 7 

2.1. 

Highlights of the EU’s coronavirus response ............................................. 7 

2.2. 
Response initiatives under 2014-2020 multiannual financial framework 
(MFF) and SURE programme ............................................................................ 7 

3. 

4. 

THE LONG-TERM EU BUDGET 2021-2027 AND NEXT GENERATION EU ............ 12 

DEPARTURE OF THE UNITED KINGDOM FROM THE EUROPEAN UNION ............ 15 

4.1. 

4.2. 

Background ....................................................................................... 15 

UK Share .......................................................................................... 15 

4.3. 
EU annual accounts: Amounts owed by and to the UK under the Withdrawal 
Agreement ................................................................................................... 16 

5. 

6. 

SUMMARY OF BUDGET IMPLEMENTATION ................................................... 19 

FINANCIAL INSTRUMENTS AND BUDGETARY GUARANTEES........................... 20 

6.1. 

6.2. 

6.3. 

6.4. 

Financial instruments financed by the EU budget.................................... 20 

Financial assets held in guarantee funds for budgetary guarantees ........... 20 

Loans and related borrowings for financial assistance programmes ........... 21 

Budgetary contingent liabilities for financial assistance programmes ......... 24 

7. 

FINANCIAL STATEMENTS ANALYSIS ........................................................... 25 

7.1. 

7.2. 

7.3. 

7.4. 

REVENUE .......................................................................................... 25 

EXPENSES ......................................................................................... 26 

ASSETS ............................................................................................ 27 

LIABILITIES ...................................................................................... 29 

EU POLITICAL AND FINANCIAL FRAMEWORK, GOVERNANCE AND 

8. 
ACCOUNTABILITY ............................................................................................ 31 

8.1. 

8.2. 

POLITICAL AND FINANCIAL FRAMEWORK .............................................. 31 

GOVERNANCE AND ACCOUNTABILITY ................................................... 33 

4 

 
 
 
 
 
Annual accounts of the European Union 2020 

1.  KEY FIGURES 2020 

 The EU budget in 2020 – Implementation of commitment appropriations 

 EUR 181.7 bn implemented to deliver on the EU’s policy objectives: 

Security and citizenship  
and other EUR 8.8 bn  

Administration EUR 10.5 bn 

Global Europe EUR 12.0 bn 

Sustainable growth:  
natural resources  
EUR 60.8 bn 

Economic, social and  
territorial cohesion  EUR 
60.2 bn 

Competitiveness for 
growth and jobs  EUR 
29.3 bn 

 see Budgetary Implementation Reports and Explanatory Notes, Table 4.2 

The EU coronavirus response 

SURE – Amounts granted in 2020 

agreed 
EUR bn 

Member State 

granted 
EUR bn 

Instrument 

Next Generation EU 

SURE* 

Macro-financial assistance 

ESI 

UCPM 

Total 

750 

100 

3.0 

2.7 

0.3 

Italy 

  Spain 

  Poland 

  Belgium 

  Portugal 

856.0 

  Romania 

  Greece 

  Other 

*of which EUR 39.5 bn disbursed in 2020 

  Total granted in 2020 

27.4 

21.3 

11.2 

7.8 

5.9 

4.1 

2.7 

9.9 

90.3 

 see points 2.2 and 3    

 see point 2.2.6 

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Annual accounts of the European Union 2020 

Consolidated financial statements 

The consolidated ﬁnancial statements of the EU comprise more than 50 entities (including the European 
Parliament,  the  Council,  the  Commission  and  EU  agencies).  The  European  Commission  is  the  most 
signiﬁcant entity, accounting for 98% of the total assets of the consolidated ﬁnancial statements. 

The  EU  accounts  are  prepared  according  to  the  highest  available  standards,  the  International  Public 
Sector  Accounting  Standards  (IPSAS).  Adhering  to  these  standards  ensures  that  the  accounts  provide 
relevant,  reliable,  comparable  and  understandable  ﬁnancial  information  for  citizens.  They  provide 
information  on  the  ﬁnancial  position  (balance  sheet)  of  the  EU  as  well  as  detailed  explanations  of  its 
assets,  liabilities,  ﬁnancial  commitments  and  obligations.  They  also  show  how  the  EU  budget  was 
implemented during the year. 

ASSETS 

Financial Assets 

Pre-financing 

Receivables 

Cash and cash equivalents 

Property, Plant and Equipment and other assets 

Total 

LIABILITIES 

Post-employment benefits 

Financial liabilities 

Payables 

Accruals 

Other liabilities 

Total 

NET ASSETS 

Reserves 

Amounts to be called from Member States 

Total 

2020 

113.1 

62.7 

74.5 

16.7 

13.0 

280.0 

116.0 

95.0 

32.4 

64.6 

5.4 

313.5 

5.1 

(38.5) 

(33.4) 

EUR billion 

2019 

71.2 

51.4 

24.0 

19.7 

12.6 

178.9 

97.7 

54.5 

27.2 

67.2 

4.8 

251.5 

5.0 

(77.6) 

(72.5) 

 see Financial Statement Analysis, point 7 

6 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

2. 

CORONAVIRUS RESPONSE 

2.1.  Highlights of the EU’s coronavirus response 

Since  the  outbreak  of  the  COVID-19  pandemic,  the  European  Commission  has  taken  resolute  action  to 
reinforce the public health sectors and mitigate the socio-economic impact in the European Union. Based 
on  the  2014-2020  multiannual  financial  framework  (MFF),  the  European  Commission  has  mobilised  all 
means at its disposal to help Member States coordinate their national responses and provided objective 
information about the spread of the virus and effective efforts to contain it. 

Timeline of actions taken1 

  2 April 
Coronavirus response: European Commission mobilises every euro to protect lives and livelihoods 

    14 April 

€2.7 billion from the EU budget to support the healthcare sector 

    16 April 

President von der Leyen: ‘The European budget will be the mothership of Europe’s recovery’ 

    22 April 

€3 billion financial assistance package for ten enlargement and neighbourhood countries 

    27 May 

Europe’s moment: major €2.4 trillion Recovery Plan for Europe unveiled to repair and prepare for the 
next generation 

    4 June 

European Commission pledges €300 million to the Vaccine Alliance 

    21 July 

European leaders reach a deal on the recovery plan and European long-term budget 2021-2027 

    25 August 

European Commission proposes to provide €87.3 billion in financial support for 16 Member States 
under SURE 
    17 September 

European Commission presents next steps for €672.5 billion Recovery and Resilience Facility 

    22 September 

European Commission welcomes finalisation of guarantee system for €100 billion SURE instrument 

    7 October 

European Commission to issue EU SURE bonds of up to €100 billion as social bonds 

    27 October 

European Commission disburses first €17 billion SURE instalments to Italy, Spain and Poland 

    10 November 

European Commission welcomes agreement on €1.8 trillion EU long-term budget and 
NextGenerationEU to help build greener, more digital and more resilient Europe 
  17 November 
European Commission disburses €14 billion to nine Member States under the SURE instrument  

    1 December 

European Commission disburses €8.5 billion under SURE to five Member States to help sustain jobs 

    17 December 

European Commission welcomes the adoption of the EU's long-term budget for 2021-2027 

2.2.  Response initiatives under 2014-2020 multiannual 

financial framework (MFF) and SURE programme 

The  European  Union’s  interventions  under  the  2014-2020  MFF  to  fight  the  COVID-19  pandemic  ranged 
from  immediate  actions  such  as  funding  urgent  medical  supplies  and  increasing  medical  stockpiles,  to 

1  For a complete and updated overview of actions taken please refer to the EU’s coronavirus response webpage at  

https://ec.europa.eu/info/live-work-travel-eu/coronavirus-response/timeline-eu-action_en. 

7 

 
 
 
 
                                                 
Annual accounts of the European Union 2020 

introducing  more  flexibility  as  regards  utilising  the  financial  support  from  the  European  Structural  and 
Investment  Funds,  and  to  providing  loans  on  favorable  terms  to  both  Member  States  and  enlargement 
and  neighbourhood  partners.  The  total  direct  support  from  the  EU  budget  amounted  to  about 
EUR 70 billion in 2020. This covers commitments that could be redirected to COVID-19 related actions, of 
which  EUR  66  billion  came  from  redeployment  and  reprioritisation  within  existing  programmes  and 
EUR 4 billion from budgetary reinforcement. The key initiatives are explained in more detail below.  

2.2.1.  Activation of the Emergency Support Instrument (ESI) 

Given the depth of the crisis following the COVID-19 pandemic, as well as the extent and nature of the 
needs  requiring  support  from  the  EU  budget,  the  EU  reactivated  the  ESI  instrument  for  a  period  of  2 
years  to  finance  expenditure  necessary  to  address  the  COVID‐19  pandemic  for  the  period  1  February 
2020  to  31  January  2022  (see  Council  regulation  (EU)  2016/369  of    15  March  2016)2.  To  further  this 
objective,  the  2020  budget  was  amended.3  Considering  in  addition  DEC  13/2020  adopted  on  24  July 
2020, EUR 2.7 billion in commitment appropriations and EUR 2.6 billion in payment appropriations were 
allocated  to  the  ESI  instrument  for  2020.  The  reactivation  allows  the  Union  to  deploy  measures 
preventing  and  mitigating  severe  consequences  in  one  or  more  Member  States  and  to  address,  in  a 
coordinated  manner,  the  needs  related  to  the  COVID-19  pandemic,  by  complementing  any  assistance 
provided  under  other  EU  instruments.  The  instrument  is  centrally  managed  by  the  Commission  and 
focuses  on  direct  procurement  and  grants,  complemented  in  certain  cases  by  actions  implemented 
through partners such as international organisations.  

In  2020,  the  Commission  signed  advance  purchase  agreements  with  a  number  of  pharmaceutical 
companies.  Advance  purchase  agreements  help  reduce  the  risk  linked  to  investments  made  by 
manufacturers in the development of potential vaccines or aim at ensuring deliveries, and thus maximise 
the chances of quickly developing, manufacturing and deploying safe and effective vaccines, and ensuring 
that EU citizens will have access to them. The Commission negotiated with pharmaceutical companies on 
behalf of EU  Member States, leading to the initial  signature of six agreements, with further exploratory 
talks with additional vaccine  manufacturers that  started in 2020 and are  still ongoing in 2021. The first 
vaccine  to  be  granted  conditional  marketing  authorisation,  on  21  December  2020,  was  produced  by 
BioNTech/Pfizer. Its distribution started within days, in time for the launch of the EU Vaccination Days on 
27, 28 and 29 December 2020. This authorisation followed a positive scientific recommendation based on 
a thorough assessment of the safety, effectiveness and quality of the vaccine by the European Medicines 
Agency, and was endorsed by the Member States. 

As  of  31  December  2020,  the  Commission  has  contracted  1  965  million  doses  (of  which  1  305  million 
fixed and 660 million optional). 

2  As  amended  by  Council  Regulation  (EU)  2020/521  of  14/04/2020  activating  emergency  support  under  Regulation 

(EU) 2016/369, and amending its provisions taking into account the COVID-19 outbreak, OJ 2020, L 117, p. 3 
3  See amending budget No 1/2020 (adopted 17/04/2020), amending budget No 6/2020 (adopted 17(09/2020). 

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Annual accounts of the European Union 2020 

In 2021, the Commission has contracted a further 2 400 million doses (fixed or optional). However, these 
doses will be fully paid by the Member States concerned, with no effect on the EU budget. 

2.2.2.  Support for research 

On  4  May  2020,  the  EU  and  its  partners  hosted  an  international  pledging  conference  which  has  raised 
EUR  9.8  billion  in  pledges  from  donors  worldwide  to  kick-start  global  cooperation  on  coronavirus 
research.  This  includes  a  pledge  of  EUR  1.4  billion  from  the  Commission,  of  which  EUR  1  billion  comes 
from Horizon 2020.  

The EU plays a central role in supporting and coordinating research on infectious diseases, with EUR 4.1 
billion  invested  from  2007  to  2019  through  the  7th  Framework  Programme  and  Horizon  2020,  with 
further commitments in 2020, in addition to the EUR 1 billion pledge for coronavirus research. Up to date 
figures of all funding pledged and already mobilised under Horizon 2020 to contribute to the Coronavirus 
Global Response pledging marathon are available online.4 

Moreover,  on  3  March  2020,  the  Innovative  Medicines  Initiative  (IMI)  supported  through  the  European 
Commission’s Horizon 2020 Framework Programme for Research and Innovation, launched a special fast-
track call for the ‘Development of therapeutics and diagnostics combatting coronavirus infections’ with an 
EU contribution of EUR 45 million, which was subsequently increased to EUR 72 million. 

Finally,  on  8  June  2020  the  Commission  awarded  nearly  EUR  166  million,  via  the  European  Innovation 
Council (EIC) Accelerator Pilot, to 36 companies set up to combat the coronavirus pandemic. 

2.2.3. 

Further reinforcement of the Union Civil Protection Mechanism (UCPM/rescEU) 

As a complementary measure to the ESI, the UCPM/rescEU was reinforced to allow wider stock-piling and 
coordination  of  essential  resource  distribution  across  Europe  (see  Commission  Implementing  Decision 
(EU)  2019/570,  as  amended  by  Commission  Implementing  Decision  2020/414  of  19  March  2020  and 
Commission Implementing Decision (EU) 2020/452 of 26 March 2020). To this purpose, the 2020 budget 
was  amended  to  include  a  further  EUR  0.4  billion  in  commitment  appropriations  and  EUR  0.2  billion  in 
payment appropriations. 

The  reinforcement  of  the  UCPM/rescEU  supports  Member  States  in  purchasing  some  of  the  required 
equipment  (including  therapeutics,  medical  equipment,  personal  protective  equipment,  laboratory 
supplies), thus increasing the volume as well as complementing and widening the scope of priority items 
purchased  under  the  Joint  Procurement  Agreement,  a  coordinated  approach  giving  Member  States  a 
strong position when negotiating with the industry on availability and price of medical products. 

The  rescEU  direct  grants  provide  100%  financing  from  the  EU  budget,  which  includes  full  financing  for 
development  of  these  capacities  and  full  financing  for  deployment  of  equipment.  The  equipment 
purchased will be hosted by one or more Member States, while decision making is organised at EU level, 
providing emergency supplies over and beyond national stocks. It will be available to all Member States 
and will be used in case of insufficient national availability. 

2.2.4.  Coronavirus Response Investment Initiative (CRII and CRIIplus) 

One of the first measures launched by the EU, to support Member States financially in their response to 
the crisis was the CRII, implemented by Regulation 2020/460 of the European Parliament and the Council 
of  30  March  2020.  By  mobilising  unspent  money  already  allocated  to  EU  Member  States,  the  initiative 
provided  an  immediate  liquidity  boost  to  Member  States’  and  regions’  budgets  and  helped  them  to  use 
cohesion  policy  funding  to  finance  healthcare  expenditure  and  short-term  work  schemes,  and  to  offer 
working  capital  support  for  small  and  medium-sized  enterprises.  The  scope  of  the  European  Union 
Solidarity  Fund  was  also  extended  to  cover  major  public  health  emergencies,  thereby  allowing  Member 
States to receive support under this fund to help them tackle the COVID-19 pandemic. 

From  April,  the  CRIIplus,  implemented  by  Regulation  2020/558  of  the  European  Parliament  and  the 
Council  of  23  April  2020,  made  it  simpler  to  quickly  make  use  of  existing  European  Structural  and 

4  See https://ec.europa.eu/info/research-and-innovation/research-area/health-research-and-innovation/coronavirus-

research-and-innovation/financing-innovation_en. 

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Annual accounts of the European Union 2020 

Investment  Funds  for  crisis-related  measures,  and  made  it  possible  to  raise  the  EU’s  contribution  to 
cohesion policy programmes to up to 100% for payment applications submitted between 1 July 2020 and 
30 June 2021. 

In December, the Commission announced the 2020 results of the two initiatives. Since the beginning of 
the  crisis,  the  EU  has  mobilised  significant  funding  to  fight  the  effects  of  the  pandemic.  Small  and 
medium-sized enterprises benefited from most of the funding available, over EUR 10 billion, which helped 
businesses  to  stay  afloat.  EUR  3  billion  was  directed  to  citizens,  including  providing  social  services  for 
vulnerable groups and temporary employment schemes for workers. Lastly, EUR 7 billion was provided to 
support  the  health  sector,  in  addition  to  the  EUR  10.2  billion  from  the  EU  budget  that  was  already 
allocated to this area for  the years 2014–2020 (note  that  there is some overlap  between the groups of 
beneficiaries). 

2.2.5.  Assistance to enlargement, neighbourhood partners and beyond 

The EU  has so  far mobilised  over EUR  38.5 billion to  fight the coronavirus on a global scale. The Team 
Europe approach combines resources from the EU, its Member States and financial institutions, including 
the European Investment Bank and the European Bank for Reconstruction and Development, to support 
partner  countries.  Half  of  the  EUR  38.5  billion  global  response  to  the  coronavirus  pandemic  has  been 
disbursed. 

Moreover, the Commission has concluded ten financial guarantee agreements worth EUR 990 million with 
partner financial institutions that complete the European Fund for Sustainable Development, the financing 
arm  of  the  External  Investment  Plan.  The  agreements  should  generate  up  to  EUR  10  billion  in 
investment, to stimulate the  economic recovery  and strengthen the resilience of EU  neighbourhood and 
African countries. 

A further EUR 500 million was allocated to support the COVAX global vaccine initiative, aiming to provide 
one billion coronavirus vaccine doses for low and middle-income countries in Africa, Asia, the Caribbean 
and Pacific, as well as in Europe’s Southern and Eastern Neighbourhood. EUR 100 million were allocated 
by the Commission and EUR 400 million by the European Investment Bank, guaranteed by the European 
Fund for Sustainable Development, for the participation of low and middle-income countries in the COVAX 
Advance  Market  Commitment. On 19  February  2021, the European Union announced an additional EUR 
500  million  for  the  COVAX  Facility,  and  the  European  Commission  announced  EUR  100  million  in 
humanitarian assistance to support the rollout of vaccination campaigns in Africa. 

On  25  May  2020  the  European  Parliament  and  the  Council  adopted  a  Decision  (EU)  2020/701  on 
providing macro‐financial assistance to ten enlargement and neighbourhood partners to allow short‐term 
policy space to implement measures to counter the economic fallout from the COVID‐19 pandemic with a 
maximum total of EUR 3 billion in the form of loans. In 2020 a total of EUR 1.0 billion was disbursed as a 
first  instalment  to  seven  countries  (Ukraine,  Jordan,  North  Macedonia,  Georgia,  Kosova,  Moldova  and 
Montenegro).  Up  until  June  2021  a  total  of  EUR  0.6  billion  was  disbursed  to  five  countires  as  a  first 
instalment (Albania, Tunisia) or second instalment (North Macedonia, Kosovo, Montenegro). Furthermore, 
a Memorandum of Understanding with Bosnia Herzegovina has been signed. 

2.2.6. 

Temporary Support to mitigate Unemployment Risks in an Emergency (SURE) 
following the COVID-19 pandemic 

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

10 

 
 
Annual accounts of the European Union 2020 

As of 31 December 2020 the Commission has proposed a total of EUR 90.3 billion in financial support to 
18 Member States, all of which has already been approved by the Council. The majority of this amount, 
EUR  87.3  billion,  targeting  16  Member  States,  has  already  been  proposed  by  August  2020,  with  the 
remaining  amount  of  EUR  3  billion,  targeting  Hungary  and  Ireland,  proposed in  October  and  November 
2020, respectively: 

Following  the  first  three  SURE  bond  issuances  in  October  and  November  2020,  the  Commission  has 
disbursed  a  total  of  EUR  39.5  billion  to  15  EU  Member  States  (Belgium,  Croatia,  Cyprus,  Greece, 
Hungary,  Italy,  Latvia,  Lithuania,  Malta,  Poland,  Portugal,  Romania,  Slovakia,  Slovenia  and  Spain,  see 
point 6.3). 

The  implementation  of  SURE  continued  in  2021.  In  February  and  March  2021  the  Commission  has 
proposed  EUR  230  million  to  Estonia  and  a  further  EUR  3.7  billion  to  Belgium,  Cyprus,  Greece,  Latvia, 
Lithuania  and  Malta,  increasing  the  total  volume  under  SURE  to  EUR  94.3  billion.  These  additional 
amounts  have  been  approved  by  the  Council  in  March  and  April  2021.  Following  four  further  bond 
issuances  in  January,  March  and  May  2021,  the  Commission  disbursed  a  further  EUR  50.1  billion, 
resulting in a total level of disbursements of EUR 89.6 billion. 

All  the  bonds  issued  under  SURE  were  largely  oversubscribed,  most  of  them  by  double-digit  numbers, 
and  attracted  a  diverse  base  of  EU  and  international  investors.  This  resulted  in  very  favourable  pricing 
terms. The bonds issued by the EU under SURE benefit from a social bond label. This provides investors 
with  confidence  that  the  funds  mobilised  will  serve  a  truly  social  objective.  The  funds  raised  are  being 
transferred to the beneficiary  Member States in  the  form of loans to help them  cover the costs directly 
related to the financing of national short-time work schemes and similar measures as a response to the 
pandemic. 

11 

  
 
Annual accounts of the European Union 2020 

3. 

THE LONG-TERM EU BUDGET 2021-2027 AND 
NEXT GENERATION EU 

In  2020,  the  EU  provided  an  unprecedented  response  to  the  coronavirus  crisis  that  hit  Europe  and  the 
world. At the heart of it is a stimulus package worth EUR 2.018 trillion in current  prices (EUR 1.8 trillion 
in 2018 prices). It consists of the EU’s long-term budget for 2021-2027 of EUR 1.211 trillion (EUR 1.074 
trillion  in  2018  prices),  topped  up  by  EUR  807  billion  (EUR  750  billion  in  2018  prices)  through 
NextGenerationEU,  a  temporary  instrument  to  power  the  recovery.5  Taken  together,  the  funds  will  help 
repair  the  economic  and  social  damage  caused  by  the  coronavirus  pandemic  and  steer  the  transition 
towards a modern and more sustainable Europe. 

Single Market, Innovation and Digital   
149.5 (+ 11.5 from NGEU)  

Cohesion, Resilience and Values    
426.7 (+ 776.5 from NGEU)  

Natural Resources and Environment    
401 (+ 18.9 from NGEU)  

Migration and Border Management    
25.7  

Security and Defence    14.9  

Neighbourhood and the World    
110.6  

European Public Administration    
82.5  

NextGenerationEU  
806.9  

Long-term budget 
1 210.9 

More than 50% of the long-term budget and NextGenerationEU will go to new priorities. The money will 
go  to  research  and  innovation,  via  Horizon  Europe;  to  fair  climate  and  digital  transitions,  via  the  Just 
Transition  Fund  and  the  Digital  Europe  programme;  to  preparedness,  recovery  and  resilience,  via  the 
Recovery  and  Resilience  Facility,  the  EU’s  civil  protection  mechanism,  rescEU,  and  to  the  health 
programme, EU4Health. 

30%  of  the  long-term  budget  and  NextGenerationEU  will  be  spent  to  fight  climate  change,  the  highest 
share ever of the largest European budget ever. 

20%  of  NextGenerationEU  funds  will  be  invested  in  the  EU’s  digital  transformation.  The  funds  will  help 
the EU invest more in supercomputing, artificial intelligence, cybersecurity, advanced digital skills and the 
wider use of digital technologies across the economy and society. 

In 2026 and 2027, 10% of the annual spending under the long-term budget will contribute to halting and 
reversing the decline of biodiversity. 

5  The separate values – current and 2018 prices – represent the same amount in nominal and in real terms. The 

difference stems from the annual adjustment for inflation. 

12 

TotalEUR 2.018 trillion 
 
                                                 
Annual accounts of the European Union 2020 

NEXT GENERATION EU 

Amounts raised and spent under NextGenerationEU (NGEU) will be included in the 2021 annual accounts. 
The  first  bond  issuance,  raising  EUR  20  billion  via  a  ten-year  bond  due  in 2031,  took  place  on  15  June 
2021. 

With a budget of EUR 806.9 billion, NextGenerationEU will help repair the immediate economic and social 
damage  brought  about  by  the  coronavirus  pandemic.  The  instrument  will  help  build  a  post-COVID-19 
Europe  that  is  greener,  more  digital,  more  resilient  and  better  fit  for  the  current  and  forthcoming 
challenges. 

Part of the funds – EUR 385.8 billion – will be used to provide loans from the Union to individual Member 
States. These loans will be repaid by those Member States. The other part  – EUR 338.0 billion – will be 
provided in the form of grants or to enable budgetary guarantees for investment support. 

Recovery and Resilience   
Facility  
EUR 723.8 billion 

338.0 in grants 

385.8 in loans 

POWER UP  
Clean technologies and renewables 

RENOVATE 
Energy efficiency of buildings 

RECHARGE AND REFUEL  
Sustainable transport and charging 
stations 

CONNECT 
Roll-out of rapid broadband 
services 

MODERNISE 
Digitalisation of public 
administration 

SCALE UP  
Data cloud and sustainable 
processors 

NextGenerationEU  
contribution to other   
programmes  
EUR 83.1 billion 

REACT-EU 
50.6 

JUST TRANSITION FUND 
10.9  

RURAL DEVELOPMENT 
8.1 

INVESTEU 
6.1 

HORIZON EUROPE 
5.4 

RESCEU 
2.0 

RESKILL AND UPSKILL  Education 
The  centrepiece  of  NextGenerationEU  is  the  Recovery  and  Resilience  Facility  –  an  instrument  to  offer 
and training to support digital skills 
grants  and  loans  to  support  reforms  and  investments  in  the  EU  Member  States  to  a  total  value  of  EUR 
723.8  billion.  The  funds  under  the  Recovery  and  Resilience  Facility  will  be  distributed  according  to 
national  Recovery  and  Resilience  plans  prepared  by  each  Member  State,  in  cooperation  with  the 
Commission, and in line with an agreed allocation key. 

In addition, NextGenerationEU will reinforce several existing EU programmes: 

•  Cohesion, under the Recovery Assistance for Cohesion and the Territories of Europe (REACT-EU), 

to help address the economic consequences of COVID-19 in the first years of the recovery, 

• 

Just Transition Fund, to guarantee that the transition to climate neutrality works for all, 

•  Rural development, to further support farmers, 

• 

InvestEU, to support investment efforts of our businesses, 

13 

 
 
 
Annual accounts of the European Union 2020 

• 

rescEU,  so  that  the  EU  civil  protection  mechanism  has  the  capacity  to  respond  to  large-scale 
emergencies, 

•  Horizon Europe, to make sure the EU has the capacity to fund more excellence in research. 

To  finance  NextGenerationEU,  the  EU  will  borrow  on  the  markets  with  the  EU  budget  as  a  guarantee. 
Repayment  will  take  place  over  a  long  time  horizon,  until  2058.  This  will  avoid  immediate  pressure  on 
Member States’ national finances and enable EU countries to focus their efforts on the recovery. 

14 

 
Annual accounts of the European Union 2020 

4.  DEPARTURE OF THE UNITED KINGDOM FROM 

THE EUROPEAN UNION 

4.1.  Background 

On  31  January  2020,  the  United  Kingdom  (UK)  withdrew  from  the  European  Union.  The  terms  of  its 
departure  are  defined  in  an  Agreement  on  the  withdrawal  of  the  UK  from  the  EU  and  the  European 
Atomic Energy Community6, also known as the ‘Withdrawal Agreement’ or ‘WA’. As part of this deal, the 
UK agreed to honour all financial obligations undertaken while it was a member of the EU. The agreement 
entered into force on 31 January 2020.  

  31 January 2020 

The UK officially leaves the Union and the Withdrawal Agrement enters into force 

  1 February-31 December 2020 

Transition period 
  31 March 2021 

Reporting on financial information made by the EU to the UK 

  16 April 2021 

Amounts to be paid are communicated by the EU to the UK 

  30 June 2021 

First payments by the UK under Withdrawal Agreement due to begin 

  16 September 2021 

Amounts to be paid communicated by the EU to the UK 

  31 October 2021 

Second round of payments by the UK to begin 

During  the transition  period,  the  UK  continued  to  contribute  to  and  benefit  from  the  EU  budget,  as  if  it 
were a Member State. After the end of the transition period and in line with the WA, the UK will continue 
to  contribute  to  the  EU  budget.  Equally,  the  UK  will  continue  to  benefit  from  pre-2021  EU  programmes 
and expenditure as if it was a Member State. The UK will also receive back certain defined monies it paid 
into the EU budget or monies received by the EU budget linked to its period of membership. 

These obligations create liabilities and receivables for the EU which have to be calculated and reflected in 
the EU’s annual accounts: the 2020 annual accounts show these amounts for the first time, as this is the 
year the UK left the EU. 

These  annual  accounts  therefore  contain  detailed  explanations  of  the  future  UK  contributions  to  the  EU 
budget required by the WA, as well  as amounts due  to the UK. The amounts concerned will be paid by 
the UK over a long period of time.  

The net amount fully respects the three principles underpinning the financial settlement in the WA: 

•  no Member State should pay more or receive less because of the UK’s withdrawal from the Union; 

• 

• 

the UK should pay its share of the commitments undertaken during its membership; and 

the UK should neither pay more nor earlier than if it had remained a Member State. This implies 
in  particular  that  the  amounts  that  the  UK  should  pay  are  based  on  the  actual  outcome  of  the 
budget, i.e. adjusted to implementation. 

The WA also details the methodologies to calculate the various amounts, as explained below. 

4.2.  UK Share 

In accordance with Article 139 of the WA, the UK's share of the financial obligations arising from the WA 
is  calculated  as  a  ratio  between  the  own  resources  made  available  by the  United  Kingdom  in  the  years 
2014  to  2020  and  the  own  resources  made  available  during  that  period  by  all  Member  States  and  the 
United Kingdom. The adjustments resulting from the netting of the VAT and GNI balances for the years 

6  OJ L 29, 31.1.2020, p. 7-187. 

15 

 
                                                 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

2014 to 2019 are also included. The calculated UK share will be subject to the final adjustments foreseen 
in  Article  139  WA  in  2022.  The  UK  share  for  2021  is  used  for  the  calculations  in  points  (a)  and  (c)  of 
Article 136(3), and in Articles 140 to 147. 

The UK share calculated in accordance with Article 139 WA is 12.358072326018200%. 

4.3.  EU annual accounts: Amounts owed by and to the UK 

under the Withdrawal Agreement 

The WA identifies provides for payments obligations between the two parties in particular in the following 
areas: 

•  Own resources (Article 136) 

•  Outstanding commitments (Article 140) 

•  Competition fines (Article 141) 

•  Union Liabilities (Article 142) 

•  Contingent financial liabilities and financial instruments (Articles 143 & 144) 

•  Net assets of the European Coal & Steel Community (Article 145) 

•  EU investment in the European Investment Fund, EIF (Article 146) 

•  Contingent liabilities concerning legal cases (Article 147). 

The  WA  also  lays  down  the  methodology  as  to  how  these  obligations  will  be  dealt  with  each  year  –  in 
summary the EU will report twice a year to the UK on the amounts due and the UK will pay these on a 
monthly basis. The reporting will be updated each year based on actual figures.  

The table below summarises the amounts due by the UK to the EU, as well as any amounts due by the 
EU  to  the  UK,  resulting  in  a  net  overall  receivable  for  the  EU.  All  calculations  have  been  made  in  full 
respect of the WA. These obligations relate to past commitments made when the UK was a Member State 
of the EU and during the transition period until 31 December 2020, and will expire as soon as they have 
been paid or if the obligation does not materialise. Payments will be made in line with the procedure set 
out in Article 148 WA. 

Due from the UK 
Due to the UK 
Net receivable from the UK 
Estimated to be paid by the UK after 2021 
Estimated to be paid by the UK in 2021 

Article 140  Article 142 
14.3 
- 
14.3 
14.3 
0.0 

35.0 
- 
35.0 
28.2 
6.8 

EUR billion 
Other  31.12.2020 
49.6 
(2.1) 
47.5 
40.6 
6.8 

0.3 
(2.1) 
(1.8) 
(1.9) 
0.0  

The overall amount comprises the following elements: 

Article 136: Own resources 

Article  136  establishes  the  provisions  applicable  after  31  December  2020  in  relation  to  own  resources. 
The UK is entitled to receive its share of adjustments related to the surplus of the year 2020. It is also 
subject to any adjustments of VAT and GNI own resources that relate to the financial years until 2020  – 
these  adjustments  will  be  calculated  yearly  until  31  December  2028.  Updates  of  the  UK  correction  are 
also made. 

The  UK  is  required  to  pay  the  traditional  own  resources  collected  by  them  after  28  February  2021,  but 
related to the year 2020 and earlier. Their share of the total made available traditional own resources by 
the  EU  27  and  by  them  is  then  deducted  from  this  amount.  The  separate  account  for  traditional  own 
resources shall be fully liquidated at 31 December 2025. 

An amount of EUR 230 million is to be paid by the UK during 2021. 

16 

 
 
 
 
 
 
 
Article 140: Outstanding commitments (‘RAL’) 

Annual accounts of the European Union 2020 

The  ‘Reste  à  liquider’,  or  ‘RAL’  represents  the  total  volume  of  legal  commitments  the  EU  has  made  to 
recipients, for which payments will follow in the coming years. The RAL is a normal feature of all multi-
annual budgets, such as the EU budget. 

The commitments therefore refer to projects, programmes, agreements or contracts which have already 
been committed to, before 31 December 2020, but which are not yet fully implemented, with payments 
still to follow. Some of these payments are for UK recipients.  

According to the WA, the UK must pay its share of the EU’s outstanding commitments as of 31 December 
2020,  the  end  of  the  transition  period.  Any  commitments,  or  parts  of  it,    expected  to  be  cancelled 
(decommitments) and amounts relating to commitments funded by assigned revenue, or to programmes 
where UK does not participate (opt outs), are deducted from the total amount. 

Other  adjustments  to  the  amount  owed  by  the  UK  under  this  article  are  related  to  the  net  financial 
corrections from 2014-2020 or previous programming periods and the Traditional Own Resources relating 
to 2020 and made available in January-February 2021. 

To calculate the UK share of the RAL, the official budgetary RAL as of 31 December 2020 has been used 
as the starting point (EUR 303.2 billion see table 4.4 in the budgetary implementation tables). As of end-
2020,  the  UK  share  of  the  adjusted  RAL  stood  at  EUR  36  billion  –  once  adjusted  for  the  forecast  of 
decommitments,  the  receivable  to  the  EU  at  end  2020  amounted  to  EUR  35  billion,  of  which  EUR  6.8 
billion will be paid between 30 June 2021 and 31 December 2021.  

Article 141 Competition Fines 

The  European  Commission  directly  enforces  EU  competition  rules,  by  ensuring  that  all  companies 
compete equally and fairly on their merits. This can lead to the imposition of fines. Once imposed by the 
EU, fines can be contested (via legal proceedings) by the recipient of the fine – the fine is not definitive 
until all such proceedings are terminated. 

The EU will pay the UK, each year, its share of any competition fines that had been decided upon by the 
Union before 31 December 2020, once these fines become definitive, i.e. the fined entity either does not 
introduce an appeal in front the European Court of Justice or the appeal fails and it must pay the fine.  

In the annual accounts, the  amounts owed to the UK  as a result of fines are  deducted from the overall 
amount due by the UK. As of 31 December 2020, the estimated UK share of outstanding fines is EUR 1.8 
billion.  This  amount  will  be  returned  to  the  UK  over  a  long  period  of  time.  The  figure  is  based  on  the 
outstanding cases at 31 December 2020 and  it  may change, to  reflect the actual amounts entered into 
the budget after the fines have become definitive. 

Article 142 Union liabilities  

The UK has committed to pay its share of Union liabilities as of end-2020 except for specified liabilities as 
laid  down  in  the  WA.  The  UK  will  therefore  be  paying  its  share  of  obligations  linked  to  the  EU  as  an 
employer (i.e. pensions and sickness insurance of retired staff), as of 31 December 2020: 

1.  Pensions of EU officials: The payments of the pensions of EU staff are covered by the EU annual 
budget. In addition, EU officials pay pension contributions throughout their working career. These 
contributions are entered into the budget as revenue, decreasing the contributions needed from 
Member States to finance the global annual budget. The EU Member States commit to cover the 
pension costs of EU staff when they retire. In line with this commitment, the UK will be paying, 
starting  in  June  2022,  its  share  of  the  annual  pensions  paid  to  EU  officials  until  all  the  pension 
rights  acquired  by  staff  up  to  31  December  2020  are  exhausted,  over  several  decades.  The  UK 
may decide to settle its obligation at any point, by paying the actuarial liability at that year-end 
over a period of 5 years. 

2.  Pensions  of  Members  of  the  European  Parliament,  European  Commissioners,  Judges  in  the 
European  Court  of  Justice,  etc.:  The  UK  will  pay  its  share  of  the  actuarial  liability  as  at  31 
December 2020 over a period of 10 years, starting in October 2021. 

3.  Joint Sickness Insurance Scheme (JSIS): this is the system that covers the healthcare costs of EU 
staff,  including  pensioners.  EU  officials  and  pensioners  make  contributions  to  the  scheme 
throughout  their  career  and  when  retired,  as  does  the  EU  as  an  employer.  In  line  with  the 
principle also applied to the pension system of EU officials, the UK will pay its share of the EU’s 

17 

 
Annual accounts of the European Union 2020 

budget  contribution  to  the  healthcare  coverage  for  retired  staff.  These  payments,  beginning  in 
June 2022, will continue over several decades, or until all those obligations have been exhausted. 
As with the pensions of officials, the UK  can choose  to settle the outstanding obligations at any 
point in time by paying the actuarial liability at that year-end over a period of 5 years. 

The EU’s liabilities relating to the above post-employment benefit obligations are calculated using audited 
actuarial valuations based on international standards. The amount attributable to the UK at 31 December 
2020 stands at EUR 14.3 billion. 

EUR 11 million is due to be paid by the UK during 2021 and relates only to the separate specific pension 
schemes (e.g. MEPs). The remaining amounts for all schemes will be paid in line with the arrangements 
outlined above, from 2022 onwards. 

Articles 143/144 Financial instruments and Budgetary guarantees 

Under these articles, the UK shall be liable to fund the contingent liabilities of the EU stemming from pre-
withdrawal  date  operations  in  relation  to  its  borrowing,  lending  and  guarantee  activities  should  these 
crystallise and should they not be covered by the UK share in the existing guarantee funds. The EU will 
refund to the UK amounts which the UK has already contributed to guarantee funds and which ultimately 
end up not being needed.  

These amounts are primarily: 

•  Amounts owed to the UK for its share of the European Fund for Sustainable Development (EFSD) 
Guarantee  Fund  where  the  UK  has  already  contributed  through  its  budget  payments  but  where 
there have been no approved operations pre-withdrawal, thus no obligations for the UK to cover 
– EUR 93 million due to be returned to the UK in 2021; 

•  Amounts to be paid to the UK in relation to financial instruments – EUR 46 million; 

•  The  UK  remains  liable  to  contribute  its  share  of  the  EU’s  contingent  liabilities  (budgetary 
guarantees  –  EFSI,  ELM,  EFSM  and  other  borrowings,  etc.)  if  these  fall  due.  The  maximum 
obligation  of  the  UK  totals  EUR  12.9  billion  at  year-end  –  see  note  4.1  of  the  EU  consolidated 
annual  accounts  for  more  details.  The  amounts  are  not  due  from  the  UK  unless  the  obligation 
crystallises in the future and is not covered by a guarantee fund. This is considered unlikely. 

Article 145 European Coal and Steel Community in Liquidation (ECSC i.L.) 

The  UK  is  entitled  to  its  share  of  the  net  assets  of  the  European  Coal  and  Steel  Community  (ECSC)  in 
Liquidation at 31 December 2020 – this will be paid to the UK over 5 years. The total amount payable to 
the UK is EUR 183 million (EUR 37 million to be repaid, i.e., offset against other amounts due in 2021). 
This means that every year between 2021 and 2025, the amount of EUR 37 million will be deducted from 
the amounts due by the UK.  

Article 146 Investment in the EIF 

The UK is entitled to its share of the investment that the EU has made in the paid-in share capital of the 
European Investment Fund (EIF), payable in equal instalments over 5 years. The total amount payable to 
the  UK  is  EUR  33  million.  This  means  that  every  year  between  2021  and  2025,  the  amount  of  EUR  7 
million will be deducted from the amounts due by the UK. 

Article 147 Contingent liabilities related to legal cases 

The UK  must pay, each  year, its share  of amounts paid out by the EU  budget in relation to legal cases 
concerning events that occurred before 31 December 2020. The estimate of the UK’s share of legal cases 
that will likely require future payments at year-end is EUR 46 million, but it is not payable by the UK until 
and unless the cases are settled and a payment is first made by the EU. 

18 

 
Annual accounts of the European Union 2020 

5. 

SUMMARY OF BUDGET IMPLEMENTATION  

The  2020  final  adopted  budget  amounted  to  EUR  173.9  billion  of  commitment  appropriations  and  EUR 
164.1  billion  of  payment  appropriations.  Its  implementation  was  heavily  impacted  by  the  COVID-19 
pandemic  and  subsequent  cross-sectoral  crisis.  The  crisis  created  a  need  to  take  resolute  actions  to 
reinforce  EU  public health sectors  and  mitigate the socio-economic impact in the  EU, as well  as provide 
assistance  to third  countries.  The  2020 budget  was  the last budget implemented under the Multiannual 
Financial  Framework  2014-2020.  Its  implementation  was  carefully  monitored  and  actively  managed, 
which resulted in virtually full implementation of almost all programmes. 

The implementation of the total commitment appropriations in 2020 totalled EUR 181.7 billion: 

 

EUR 172.9 billion from the final adopted budget; 

  EUR 1.1 billion from appropriations carried-over from 2019; 

  EUR 7.7 billion from appropriations stemming from assigned revenue. 

Total payments made in 2020 totalled EUR 173.3 billion: 

  EUR 161.8 billion from the final adopted budget; 

  EUR 1.6 billion from appropriations carried-over from 2019; 

  EUR 9.9 billion from appropriations stemming from assigned revenue. 

All  headings  reached  high  levels  of  implementation  in  2020.  The  2020  implementation  for  all  types  of 
appropriations  (budget,  carry-overs  from  previous  year  and  assigned  revenue)  was  97%  for 
commitments  and  94%  for  payments.  Implementation  rates  excluding  assigned  revenue  showed  full 
implementation in 2020 (99.5% for commitment appropriations and 98.5% for payment appropriations). 

The  highest  part  of  income  was  represented  by  Own  resources,  which  amounted  to  91.9%  of  the  total 
revenue  of  EUR  174.3  billion,  followed  4.7%  from  Contributions  and  refunds  in  connection  with  EU 
agreements and programmes, which mainly concern revenue from financial corrections (ESIF, EAGF and 
EAFRD). 

Outstanding  commitments  (sometimes  referred  to  as  RAL  –  reste  à  liquider),  which  are  committed 
amounts not yet paid for, stood at EUR 303.2 billion at the end of 2020. An increase from the 2019 level 
had  been  expected,  given  the  difference  between  budgeted  commitment  and  payment  appropriations 
(EUR  9.8  billion)  in  the  final  adopted  budget  and  taking  into  account  the  fact  that  an  increase  in 
outstanding commitments  constitutes a normal evolution, as commitment  appropriations increase  every 
year  as  foreseen  in  the  MFF.  The  increase  in  outstanding  commitments  compared  to  2019  was 
EUR 5.5 billion. 

The budget result (surplus) decreased from EUR 3.2 billion in 2019 to EUR 1.8 billion in 2020: 

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) 

1 768 

 75 

(1 736) 

9 092 

7 356 

 4 

3 217 

19 

 
 
 
 
 
Annual accounts of the European Union 2020 

6. 

FINANCIAL INSTRUMENTS AND BUDGETARY 
GUARANTEES 

6.1.  Financial instruments financed by the EU budget 

Under  this  type  of  budget  implementation,  funds  are  either  already  disbursed  to  the  fiduciary  accounts 
managed  by  the  entrusted  entities  and  stay  available  (as  cash  and  cash  equivalents,  debt  securities or 
investments in money market funds or pooled portfolios of assets) to cover future guarantee calls or have 
been invested in equity. The significance and volume of financial instruments financed by the EU budget 
under direct and indirect management has been increasing in recent years. The basic concept behind this 
approach, in contrast to the traditional method of budget implementation of giving grants and subsidies, 
is that for each euro spent from the budget via financial instruments, the final beneficiary receives more 
than  EUR 1  as  financial  support  due  to  the  leverage  effect.  Financial  instruments  financed  by  the  EU 
budget exist in the  form  of  guarantee  instruments, equity instruments and loan  instruments. Under the 
2021-2027  MFF  the  use  of  budgetary  guarantees  is  expected  to  increase  in  comparison  to  the  use  of 
financial instruments fully financed or provisioned from the EU budget. In particular, under the InvestEU 
Programme  EUR  26.2  billion  of  EU  guarantee  will  be  provided  to  the  EIB  group  and  other  financial 
institutions  to  support  various  policy  objectives  of  the  Union  by  means  of  financing  and  investment 
operations. 

6.2.  Financial assets held in guarantee funds for budgetary 

guarantees 

Under  this  type  of  budget  implementation  the  EU  provides  guarantees  to  counterparts  for  which  the 
funding  is  only  partially  provisioned  via  guarantee  funds  set  up  by  the  Commission  and  thus  creating 
contingent liabilities for the EU budget in case the provisioning is not sufficient to cover the calls. The EU 
has  given  guarantees  on  loans  granted  outside  of  the  EU  (so-called  External  Lending  Mandate  or  ELM) 
and  on  debt  and  equity  operations  covered  by  the  EFSI  guarantee  to  the  EIB  Group,  as  well  as 
guarantees  on  operations  covered  by  the  EFSD  guarantee,  given  to  EIB  Group  and  other  financial 
institutions.  

In  order  to  mitigate  the  risk  that  guarantee  calls  by  the  EIB  Group  or  other  financial  institutions  could 
have  on  the  EU  budget,  the  EU  has  created  dedicated  guarantee  funds  funded  by  the  budget. 
At 31 December 2020, the Commission holds financial assets in the: 

  Guarantee Fund for external actions of EUR 2.8 billion; 

  EFSI Guarantee Fund of EUR 8.0 billion; and 

  EFSD Guarantee Fund of EUR 0.8 billion. 

The  Guarantee  Fund  for  external  actions  is  provisioned  by  the  EU  budget  so  as  to  cover  9%  of  the 
guaranteed loans outstanding at year-end for EIB external lending mandate activities to third countries. 
At 31 December 2020, the total asset value mentioned above covers an exposure of amounts disbursed 
of EUR 20.3 billion. 

The  EFSI  Guarantee  Fund  started  its  activities  in  2016.  Pursuant  to  the  amended  EFSI  Regulation 
(Regulation  EU  2017/2396)  the  EFSI  EU  guarantee  ceiling  was  increased  to  EUR 26  billion  (from  the 
initial EUR 16 billion) and the boundary for the guarantee fund decreased to 35% (from the initial 50%) 
of the total EU guarantee obligation. Therefore, the EFSI Guarantee Fund is now expected to reach a total 
amount of EUR 9.1 billion. The total assets that make up the EFSI Guarantee Fund at 31 December 2020 
is EUR 8.0 billion and that covers an exposure of disbursed amounts of EUR 18.9 billion. 

Pursuant  to  EFSD  Regulation  (Regulation  EU  2017/1601),  the  EFSD  Guarantee  of  up  to  EUR 1.5  billion 
(further  increased  by  external  contributions)  is  to  be  made  available  to  support  investments  in  partner 
countries  in  Africa  and  in  the  European  Neighbourhood.  The  EU  discloses  the  EFSD  Guarantee  in  the 
notes  to  its  consolidated  annual  accounts  (see  note  4.1.1)  as  a  contingent  liability.  As  at 
31 December 2020,  fifteen  EFSD  guarantee  agreements  were  effective,  for  a  total  cover  limit  of 
EUR 1 370 million.  The  EFSD  Guarantee  Fund  has  been  established  in  order  to  cover  potential  future 
guarantee  calls.  Total  contributions  received into the  fund  as  at  31  December  2020  amount to  EUR 0.8 
billion. Given that most of the guarantee agreements were concluded with the counterparts in 2020, the 

20 

 
Annual accounts of the European Union 2020 

programme  is  in  the  ramp  up  phase  with  EUR  438  million  guaranteed  operations  signed  by  the 
counterparts by the end of 2020. 

Following  the  entry  into  force  of  the  2021-2027  MFF,  the  net  assets  of  the  EFSI  Guarantee  Fund  were 
transferred as from 1 January 2021 into the Common Provisioning Fund (CPF)7 which hold the provisions 
made  to  cover  the  financial  liabilities  arising  from  budgetary  guarantees  and  financial  assistance 
programmes under the 2021-2027 MFF. The assets of the EFSD Guarantee Fund and the Guarantee Fund 
for external actions are expected to be transferred to the CPF in the course of 2021. 

6.3.  Loans and related borrowings for financial assistance 

programmes 

Financial support for Member States and third countries in the form of bilateral loans financed from the 
capital markets with the guarantee  of  the  EU  budget is provided by  the Commission under  decisions of 
the European Parliament and of the Council. 

In 2020 the Commission, acting on behalf of the EU, operated four main programmes under which it may 
grant loans: 

  Balance of Payments (BOP) assistance; 

  European Financial Stabilisation Mechanism (EFSM) assistance; 

  Macro-financial assistance (MFA), and 

  SURE assistance. 

The capital required to fund the EU lending is raised on the capital markets or with financial institutions. 
The EU borrowing and lending activities for financial assistance programmes are non-budget operations. 
In general, funds raised are on-lent back-to-back to the beneficiary country, i.e. with the same coupon, 
maturity  and  amount.  Notwithstanding  the  back-to-back  methodology,  the  debt  service  of  the  funding 
instruments  is  a  legal  obligation  of  the  EU,  which  will  ensure  that  all  payments  are  made  fully  and  in 
a timely  manner.  The  Commission  has  put  procedures  in  place  to  ensure  the  repayment  of  borrowings 
even in case of a loan default. 

7  Article 212 of the Financial Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 

July 2018. 

21 

 
                                                 
At 31 December 2020, the nominal amount of the loans granted for financial assistance were: 

Annual accounts of the European Union 2020 

Total granted 

Total disbursed 
at year-end 

Total repaid at 
year-end 

EUR billion 
Outstanding at 
year-end 

SURE 
Belgium 
Bulgaria 
Croatia 
Cyprus 
Czechia 
Greece 
Hungary 
Ireland 
Italy 
Latvia 
Lithuania 
Malta 
Poland 
Portugal 
Romania 
Slovakia 
Slovenia 
Spain 

EFSM 
Ireland 
Portugal 

MFA 
Ukraine 
Tunisia 
Jordan 
Other 

BOP 
Latvia 

Total 

- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 

- 
- 
- 

(0.6) 
- 
- 
(0.2) 
(0.8) 

(2.7) 
(2.7) 
(3.5) 

2.0 
- 
0.5 
0.3 
- 
2.0 
0.2 
- 
16.5 
0.1 
0.3 
0.1 
1.0 
3.0 
3.0 
0.3 
0.2 
10.0 
39.5 

22.5 
24.3 
46.8 

3.8 
0.8 
0.6 
0.6 
5.8 

0.2 
0.2 
92.3 

7.8 
0.5 
1.0 
0.5 
2.0 
2.7 
0.5 
2.5 
27.4 
0.2 
0.6 
0.2 
11.2 
5.9 
4.1 
0.6 
1.1 
21.3 
90.3 

22.5 
26.0 
48.5 

5.0 
1.4 
1.1 
1.5 
9.0 

3.1 
3.1 
150.9 

2.0 
- 
0.5 
0.3 
- 
2.0 
0.2 
- 
16.5 
0.1 
0.3 
0.1 
1.0 
3.0 
3.0 
0.3 
0.2 
10.0 
39.5 

22.5 
24.3 
46.8 

4.4 
0.8 
0.6 
0.8 
6.6 

2.9 
2.9 
95.8 

22 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The repayment schedule for the amounts outstanding at year-end is as follows: 

Annual accounts of the European Union 2020 

SURE 

EFSM 

MFA 

EUR billion 

TOTAL 

2021 
2022 
2023 
2024 
2025 
2026 
2027 
2028 
2029 
2030 
2031 
2032 
2033 
2034 
2035 
2036 
2038 
2040 
2042 
2050 

Total 

SURE 

- 
- 
- 
- 
8.0 
- 
- 
- 
- 
10.0 
- 
- 
- 

8.5 
- 
- 
7.0 
- 
6.0 

39.5 

9.8 
2.7 
3.5 
2.6 
2.4 
4.0 
3.0 
2.3 
1.4 
- 
2.2 
3.0 
2.1 
- 
2.0 
1.0 
1.8 
- 
3.0 
- 

46.8 

- 
- 
0.1 
0.6 
- 
0.1 
0.2 
0.2 
0.9 
0.1 
0.9 
0.1 
0.5 
0.2 
1.9 
- 
- 
- 
- 
- 

5.8 

9.8 
2.7 
3.6 
3.2 
10.4 
4.1 
3.2 
2.5 
2.3 
10.1 
3.1 
3.1 
2.6 
0.2 
12.4 
1.0 
1.8 
7.0 
3.0 
6.0 

92.1 

SURE was established in 2020 to provide financial assistance to Member States which are experiencing, 
or  are  seriously  threatened  with,  a  severe  economic  disturbance  caused  by  the  COVID-19  pandemic  on 
their territory. The instrument complements the national measures taken by affected Member States. 

The maximum amount of financial assistance shall not exceed EUR 100 billion for all Member States. In 
2020,  Member  States  signed  loan  facility  agreements  amounting  to  EUR  85.9  billion  and  out  of  this 
amount  EUR  39.5  billion  were  disbursed.  The  maturity  of  loans  varies  between  5,  10,  15,  20  and  30 
years. 

EFSM 

EFSM  was  created  to  provide  financial  assistance  to  all  Member  States  experiencing  or  seriously 
threatened  by  a  severe  economic  financial  disturbance  caused  by  exceptional  occurrences  beyond  their 
control. The EFSM was used to provide financial assistance, conditional on the implementation of reforms, 
to Ireland and Portugal between 2011 and 2014. This programme expired and no additional loans can be 
drawn,  though  it  remains  in  place  for  specific  tasks  such  as  the  lengthening  of  maturities  for  loans  to 
Ireland and Portugal and providing bridging loans. In February 2021, Ireland and Portugal requested the 
maturity  lengthening  for  the  amounts  due  in  June  2021  (EUR  4.8  billion)  and  September  2021  (EUR  5 
billion).  In  April  2021,  the  Commission  has  borrowed  EUR  4.8  billion  to  roll-over  the  loans  due  in  June 
2021, which have been extended by 15 years. 

No new operations nor loan repayments occurred in 2020. 

MFA 

The macro-financial assistance programme (MFA) is a form of financial assistance extended by the EU to 
partner  countries  outside  the  EU  experiencing  a  balance  of  payments  crisis.  It  takes  the  form  of 
medium/long-term  loans  or  grants,  or  a  combination  of  these,  and  is  only  available  to  countries 
benefiting from a disbursing IMF programme. 

23 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

In  2020,  the  Commission  adopted  a  proposal  for  a  EUR 3  billion  MFA  package  to  ten  enlargement  and 
neighbourhood  partners  to  help  them  limit  the  economic  fallout  of  the  coronavirus  pandemic.  The 
decision was adopted by the European Parliament and the Council on 25 May 2020. 

Overall, EUR 1.7 billion was disbursed in 2020 under the MFA programme. 

BOP 

The BOP is an assistance programme designed for countries outside the euro area that are experiencing 
or  are  threatened  by  difficulties  regarding  their  balance  of  payments.  BOP  assistance  takes the  form of 
medium-term loans that are conditional on the implementation of policies designed to address underlying 
economic problems. Typically, balance of payments assistance from the EU is offered in cooperation with 
the International Monetary Fund (IMF) and other international institutions or countries.  

No new operations or loan repayments occurred in 2020. 

6.4.  Budgetary contingent liabilities for financial assistance 

programmes 

Borrowings of the EU constitute direct and unconditional obligations of the EU and are guaranteed by the 
EU  Member  States  (budgetary  contingent  liabilities).  Borrowings  undertaken  to  fund  loans  to  countries 
outside  the  EU  are  covered  by  the  Guarantee  Fund  for  external  actions.  Should  a  beneficiary  Member 
State  default,  the  debt  service  will  be  drawn  from  the  available  treasury  balance  of  the  Commission,  if 
possible. If that is not possible at that time,  the  Commission would draw the  necessary funds  from  the 
Member  States.  EU  Member  States  are  legally  obliged,  according  to  the  EU  own  resources  legislation 
(Article  14  of  Council  Regulation  609/2014),  to  make  available  sufficient  funds  to  meet  the  EU’s 
obligations. Thus investors are only exposed to the credit risk of the EU, not to that of the beneficiary of 
loans  funded.  ’Back-to-back'  lending  ensures  that  the  EU  budget  does  not  assume  any  interest  rate  or 
foreign exchange risk.  

Loans provided to Member States under the SURE instrument are underpinned by a system of voluntary 
guarantees from Member States amounting to 25% of the maximum amount of financial assistance. Each 
Member State’s contribution  to the  overall amount  of  the guarantee corresponds to its relative share  in 
the total gross national income (GNI) of the European Union, based on the 2020 EU budget. 

For  each  country  programme,  the  European  Parliament,  the  Council  and  the  Commission  decisions 
determine  the  overall  granted  amount,  the  number  of  instalments  to  be  disbursed,  and  the  maximum 
(average)  maturity  of  the  loan  package.  Subsequently,  the  Commission  and  the  Member  State 
concerned,  agree  the  loan/funding  parameters,  in  particular  the  maturity  of  instalments.  In  addition, 
except  for  the  first one,  all instalments  of the  loan depend  on  compliance  with  policy  conditions,  in the 
context  of  a  joint  EU/IMF  financial  assistance,  which  is  another  factor  influencing  the  timing  of  funding 
operations.  This  implies  that  the  timing  and  maturities  of  issuances  are  dependent  on  the  related  EU 
lending  activity.  Funding  is  exclusively  denominated  in  euro  and the  maturity  spectrum  is  from  3  to 30 
years. 

24 

 
Annual accounts of the European Union 2020 

7. 

FINANCIAL STATEMENTS ANALYSIS 

7.1.  REVENUE 

The  consolidated  revenue  of  the  EU  incorporates  amounts  related  to  exchange  transactions  and 
non-exchange  transactions,  the  latter  being  the  most  significant.  The  five-year  trend  of  the  main  non-
exchange revenue categories (comprising GNI resources, Traditional own resources, VAT resources, Fines 
and Recovery of expenses, and excluding the one-time effect of revenue relating to the UK’s withdrawal 
from the EU in the year 2020) is as follows: 

Five-year trend of revenue from main non-exchange transactions (in EUR million) 

*Excluding non-exchange revenue relating to the UK’s withdrawal from the EU (EUR 47 456 million) 

As  budget  revenue  should  equal  (or  exceed)  budget  expenditure,  the  main  driver  in  the  revenue  trend 
shown above is the payments made each year. 

In  2020,  the  consolidated  revenue  amounted to  EUR  224.0  billion,  a  considerable increase of  EUR  63.7 
billion or 39.7% from the previous year figure of EUR 160.3 billion. The main driver of this development 
was the financial effect of the UK’s withdrawal from the European Union (EUR 47.5 billion). If adjusted for 
this  one-time  effect,  the  consolidated  revenue  of  2020  amounted  to  EUR  176.5  EUR  billlion,  still  an 
increase  of  EUR  16.2  billion  or  10.1%  compared  to  the  previous  year.  This  adjusted  increase  is  mainly 
due to the following effects:  

  Revenue from GNI (gross national income), the primary element of the EU’s operating revenue, 
increased from EUR 108.8 billion in 2019 to EUR 125.4 billion in 2020. The increase of EUR 16.6 
billion  or  15.3%  was  mainly  due  to  the  increase  in  payment  appropriation  needs  for  the  year 
2020,  designed  to  reinforce  key  EU  policies,  e.g  the  COVID-19  vaccines  strategy  (implemented 
via  the  Emergency  Support  Instrument),  and  the  cohesion  area  (by  adopting  the  Coronavirus 
Response Investment Initiative Plus). 

  Other non-exchange revenue increased from  EUR  2.1  billion in 2019 to EUR 7.1 billion  in  2020. 
The  increase  of  EUR  5.0  billion  was  mainly  due  to  the  contribution  from  Member  States  to  the 
Innovation  Fund  which  started  operating  in  2020  (EUR  2.1  billion),  an  increase  of  the  budget 
surplus taken in from the  previous year (EUR 3.2 billion in 2020 vs. EUR 1.8  billion in 2019) as 
well  as  a  contribution  from  Member  States  of  EUR  0.8  billion  to  top  up  the  Emergency  Support 
Instrument ESI. 

25 

 
 
Annual accounts of the European Union 2020 

 

 

Financial revenue increased from EUR 1.8 billion in 2019 to EUR 3.4 billion in 2020. The increase 
of  EUR  1.6  billion  or  88.9%  was  mainly  due  to  the  increase  in  late  payment  interest,  more 
specifically for the UK TOR cases (EUR 0.5 billion) and non-UK cases (EUR 0.5 billion), as well as 
revenues from bond premiums related to the SURE instrument (EUR 0.7 billion). 

Fines revenue decreased from EUR 4.3 billion in 2019 to EUR 0.5 billion in 2020. The decrease of 
EUR  3.8  billion  or  88.4%  was  due  to  both  the  lower  number  and  the  lower  amounts  of  fines 
issued  in  2020.  Whereas  in  2020  the  main  fines  amounted  to  EUR  0.26  billion  in  total  (Orbia, 
Clariant and Celanese), the biggest cases in 2019 amounted to EUR 3.1 billion (Google, two Forex 
cases and MasterCard). 

The above changes were counterbalanced by a decrease in revenue from traditional own resources, which 
fell from EUR 21.2 billion in 2019 to EUR 19.6 billion in 2020 (a decrease of EUR 1.6 billion or 7.5%) and 
the decrease in financial recoveries, which fell from EUR 2.6 billion in 2019 to EUR 1.4 billion in 2020 (a 
decrease of EUR 1.2 billion or 46.2%). 

7.2.  EXPENSES 

The  main  component  of  expenses  recognised  in  the  consolidated  financial  statements  are  transfer 
payments  under  the  shared  management  mode,  which  includes  the  following  funds:  (i)  European 
Agricultural Guarantee Fund (EAGF), (ii) European Agricultural Fund for Rural Development (EAFRD) and 
other rural development instruments, (iii) European Regional Development Fund (ERDF) & Cohesion Fund 
(CF), and (iv) European Social Fund (ESF). These funds made up EUR 109.7 billion or 65.9% of the total 
expenses of EUR 166.6 billion incurred in 2020 (2019: EUR 103.9 billion or 66.8%). The split of expenses 
can be found in the chart below: 

Relative weight of the main expenses implemented by the Member States (shared management) for the 
financial year of 2020: 

Expenses  incurred  under  direct  management  represent  the  budget  implementation  by  the  Commission, 
by executive agencies and by trust funds. Under indirect management the budget is implemented by EU 
agencies, EU bodies, third countries, international organisations and other entities. 

The EU recognises certain future payment obligations as expenses even if they are not yet shown in the 
cash-based  budgetary  accounts.  Significant  amounts  are  shown  under  payables  and  accrued  charges 
concerning  agriculture  and  rural  development,  and  also  under  pension  and  employee  benefits  liabilities 
relating  to  pension  and  other  post-employment  rights  acquired  by  Commissioners,  Members  of  the  EU 
institutions and staff. 

Overall, expenses increased by 7.1% or EUR 11.1 billion from EUR 155.5 billion to EUR 166.6 billion when 
compared with 2019, which was mainly driven by the following effects: 

26 

  
 
Annual accounts of the European Union 2020 

 

 

 

 

ERDF  &  CF  expenses  increased  from  EUR  35.2  billion  in  2019  to  EUR  41.1  billion  in  2020.  The 
increase of EUR 5.9 billion or 16.8% was due to better implementation of programmes as the MFF 
advanced. 

ESF expenses increased from EUR 11.2 billion in 2019 to EUR 13.7 billion in 2020. The increase of 
EUR 2.5 billion or 22.3% was mainly due to increased implementation. 

Expenses under direct management by the Commission increased from EUR 18.9 billion in 2019 
to  EUR  22.1  billion  in  2020.  The  increase  of  EUR  3.2  billion  or  16.9%  was  mainly  due  to  the 
spending  on  vaccines  against  COVID-19  (EUR  1.6  billion)  as  well  as  spending  under  the 
neighbourhood and pre-accession instruments (EUR 0.6 billion). 

EAGF  expenses  decreased  from  EUR  44.0  billion  in  2019  to  EUR  40.5  billion  in  2020.  The 
decrease of EUR 3.5 billion or 8% was mainly due to the decrease of EUR 2.6 billion in amounts 
claimed for direct payments aimed at contributing to farm incomes. 

7.3.  ASSETS 

The  most  significant  items  on  the  asset  side  of  the  balance  sheet  relate  to  financial  assets  (other  than 
cash and cash equivalents), which make up 40.4% of the EU’s total assets, followed by receivables and 
pre-financing with percentages of 26.6% and 22.4% respectively: 

Composition of the consolidated assets of the EU 

As  at  31  December  2020  the  total  assets  were  EUR  280.0  billion,  reflecting  an  increase  of  EUR  101.1 
billion  or  56.5%  over  the  previous  year  (2019:  EUR  178.9  billion),  mainly  due  to  the  following  key 
changes:  

  Receivables increased from EUR 24.0 billion in 2019 to EUR 74.5 billion in 2020. The considerable 
increase  of  EUR  50.5  billion  is  primarily  the  result  of  the  UK’s  withdrawal  from  the  European 
Union and the receivable generated by this (EUR 47.5 billion).  

 

 

Loans  increased  from  EUR  52.7  billion  in  2019  to  EUR  93.3  billion  in  2020.  The  considerable 
increase of EUR 40.6 billion or 77.0% mainly reflects the issuance of loans for financial assistance 
under the SURE instrument (EUR 39.5 billion). 

Pre-financing increased from EUR 51.4 billion in 2019 to EUR 62.7 billion in 2020. The increase of 
EUR 11.3 billion or 22.0% is mainly due to the non-recovery of the 2019 annual pre-financing in 
2020 as part of the Coronavirus Response Investment Initiatives measures (EUR 6.6 billion) and 
the pre-financing paid for the development of vaccines to address the COVID-19 pandemic (EUR 
1 billion). 

27 

 
 
Annual accounts of the European Union 2020 

The cash balance of EUR 16.7 billion at year end is made up of the following main elements: 

  An  amount  of  EUR  9.4  billion  of  payments  not  yet  implemented  at  year  end,  of  which  EUR  7.9 
billion relates to assigned revenues. The assigned revenues include EUR 1.3 billion of cash raised 
on the sale of emission allowances and recovered from the EIB after being assigned by Member 
States to the Innovation Fund. 

  An  amount  of  EUR  2.4  billion  belonging  to  financial  instruments  concerning  primarily  cash 
equivalents  managed  by  fiduciaries,  on  behalf  of  the  Commission,  for  the  purpose  of 
implementing particular financial instrument programmes funded by the EU budget and cash and 
cash  equivalents  held  in  the  guarantee  funds  relating  to  budgetary  guarantees.  The  cash 
belonging  to  financial  instruments  and  guarantee  funds  can  only  be  used  by  the  programmes 
concerned. 

  An amount of EUR 1.6 billion belonging to agencies and joint undertakings and managed  by the 

Commission treasury on behalf of these entities. 

  Cash relating to fines of EUR 1.5 billion mainly relating to cash received in connection with fines 
issued by the Commission for which the case is still open and, to a lesser extent, to definitively 
received fines to be transferred to the budget in the following year. 

  Cash relating to other consolidated institutions, agencies and bodies of EUR 1.4 billion. 

Pre-financing 

It  should  be  noted  that  the  level  of  pre-financing  is  significantly  influenced  by  the  MFF  cycle  –  for 
example  at  the  beginning  of  an  MFF  period  large  advances  are  expected  to  be  paid  to  Member  States 
under cohesion policy and these amounts remain available to the Member States until the closure of the 
programmes.  An  annual  pre-financing  is  also  paid  out,  which  must  be  used  within  the  year  or  be 
recovered the following year as part of the annual closure of the accounts cycle. The Commission makes 
every effort to ensure that the levels of pre-financing are maintained at an appropriate level. A balance 
has  to  be  struck  between  ensuring  sufficient  funding  for  the  projects  and  the  timely  recognition  of 
expenditure. 

The total pre-financing (excluding other advances to Member States and contributions to the trust funds 
Bêkou and Africa) on the EU balance sheet amounts to EUR 55.5 billion (2019: EUR 44.4 billion), almost 
all  of  which  relates  to  Commission  activities.  Some  58%  of  the  Commission's  pre-financing  concerns 
shared management, which means that the implementation of the budget is delegated to Member States 
(the Commission retains a supervisory role). 

Commission pre-financing by management mode 

28 

 
 
Annual accounts of the European Union 2020 

7.4.  LIABILITIES 

The  most  significant  items  on  the  liability  side  of  the  balance  sheet  consist  primarily  of  four  items:  (i) 
pension obligations and other post-employment benefits’ liabilities; (ii) borrowings; (iii) payables to third 
parties and (iv) accrued charges. 

Composition of the liabilities on the consolidated balance sheet of the EU 

As  at  31  December  2020  the  total  liabilities  were  EUR  313.5  billion,  an  increase  of  EUR  62.0  billion  or 
24.7% compared to the previous year (EUR 251.5 billion). 

The key changes were related to the following effects: 

 

Pensions  and  other  post-employee  benefits  increased  from  EUR  97.7  in  2019  to  EUR  116.0  in 
2020.  The  increase  of  EUR  18.3  billion  or  18.7%  was  mainly  due  to  the  actuarial  loss  from 
financial assumptions caused by a further significant decrease in the discount rate. 

  Borrowings increased from EUR 52.6 billion in 2019 to EUR 93.2 billion in 2020. The  increase of 
EUR 40.6 billion or 77.2% mainly reflects the SURE issuance amounting to EUR 39.5 billion at the 
end of 2020. 

 

Payables increased from EUR 27.2 billion in 2019 to EUR 32.4 billion in 2020. The increase of EUR 
5.2 billion or 19.1% is mainly due to  open cost claims  for the MFF period 2014-2020 that were 
received at the very year-end and not treated or paid because of lack of payment appropriations. 

29 

 
 
 
 
Total cost claims and invoices received and recognised in the Balance Sheet under the heading ‘Payables’ 

Annual accounts of the European Union 2020 

Net assets 

The  excess  of  liabilities  over  assets  does  not  mean  that  the  EU  institutions  and  bodies  are  in  financial 
difficulties, rather it means that certain liabilities will be funded by future annual budgets. Many expenses 
are recognised under accrual accounting rules in the current year although they may be actually paid in 
the following or later years and funded using future budgets; the related revenues will only be accounted 
for in future periods. The most significant amounts to be highlighted are the EAGF activities (the bulk of 
which is usually paid in the first quarter of the following year) and the employee benefits liability (to be 
paid over several decades). The considerable decrease of the amounts to be called from Member States 
from EUR 77.6 billion in 2019 to EUR 38.5 billion in 2020 is primarily due to the revenue related to the 
net amounts owed by the UK under the WA signed following its departure from the Union in 2020  – see 
note 2.6.1.2 of the EU consolidated annual accounts. 

30 

 
 
 
Annual accounts of the European Union 2020 

8. 

EU POLITICAL AND FINANCIAL FRAMEWORK, 
GOVERNANCE AND ACCOUNTABILITY 

The European Union (EU) is a Union on which the Member States confer competences to attain objectives 
they  have  in  common.  The  Union  is  founded  on  the  values  of  respect  for  human  dignity,  freedom, 
democracy,  equality,  the  rule  of  law  and  respect  for  human  rights,  including  the  rights  of  persons 
belonging to minorities. These values are common to the Member States in a society in which pluralism, 
non-discrimination, tolerance, justice, solidarity and equality between women and men prevail. 

8.1.  POLITICAL AND FINANCIAL FRAMEWORK 

EU Treaties 

The  overarching  objectives  and  principles  that  guide  the  Union  and  the 
European  institutions  are  defined  in  the  Treaties.  The  Union  and  the  EU 
institutions  may  only  act  within  the  limits  of  the  competences  conferred  by 
the Treaties so as to attain the objectives set out therein and must do this in 
accordance with the principles8 of subsidiarity and proportionality. To attain its objectives and carry out 
its policies, the Union provides itself with the necessary financial means. The Commission is responsible 
for  promoting  the  general  interest  of  the  Union  which  includes  executing  the  budget  and  managing 
programmes  in  cooperation  with  the  Member  States  and  in  accordance  with  the  principle  of  sound 
financial management. 

The EU pursues the objectives established by the Treaty with a number of tools, one of which is the EU 
budget. Others are, for example, a common legislative framework or joint policy strategies. 

Commission political 
priorities 

The  political  priorities  of  the  Commission  are  defined  in  the  political 
guidelines set by the President of the Commission. Under President von der 
Leyen, the Commission which took office on 1 December 2019 will focus on 
the following six headline ambitions: 

6 HEADLINE AMBITIONS 

  A European Green Deal 

– Striving to be the first climate-neutral continent 

  A Europe fit for the digital age 

– Empowering people with a new generation of technologies 

  An economy that works for people 

– Working for social fairness and prosperity 

  A stronger Europe in the world 

– Europe to strive for more by strengthening our unique brand of responsible global   
leadership 

  Promoting our European way of life 

– Building a Union of equality in which we all have the same access to opportunities 

  A new push for European democracy 

– Nurturing, protecting and strengthening our democracy 

8  Under the principle of subsidiarity, the Union shall act only if and in so far as the objectives of  the proposed action 
cannot  be  sufficiently  achieved  by  the  Member  States  but  can  rather,  by  reason  of  the  scale  or  effects,  be  better 
achieved at Union level. Under the principle of proportionality, the content and form of Union action shall not exceed 
what is necessary to achieve the objectives of the Treaties (see Article 5 TEU). 

31 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Annual accounts of the European Union 2020 

Multiannual financial 
framework and 
spending programmes 

The policies supported by the EU budget are implemented in accordance with 
the  multiannual  financial  framework  (MFF)  and  corresponding  sectoral 
legislation  defining  spending  programmes  and  instruments.  These  translate 
the EU’s political priorities into financial terms over a period long enough to 
be effective and  

to  provide  a  coherent  long-term  perspective  for  beneficiaries  of  EU  funds  and  co-financing  national 
authorities. Maximum annual amounts (ceilings) are set for EU expenditure as a whole and for the main 
categories of expenditure (headings). The sum  of the ceilings of all headings gives the total ceiling for 
commitment appropriations. The MFF is adopted by the Council by unanimity of all Member States, with 
the  consent  of  the  European  Parliament.  The  new  2021-2027  multiannual  financial  framework  was 
adopted on 17 December 2020. 

Annual budget 

The  annual  budget  is  prepared  by  the  Commission  and  usually  agreed  by 
mid-December  by  the  European  Parliament  and  the  Council,  based  on  the 
procedure  of  Article  314  TFEU.  According  to  the  principle  of  budgetary 
equilibrium, total revenue must equal total expenditure (payment 

appropriations) for a given financial year. 

The  main  sources  of  funding  of  the  EU  are  own  resources  revenues  which  are  complemented  by  other 
revenues. There are three types of own resources: traditional own resources (mainly custom duties), the 
own  resource  based  on  value  added  tax  (VAT)  and  the  own  resource  based  on  gross  national  income 
(GNI).  Other  revenues  arising  from  the  activities  of  the  EU  (e.g.  competition  fines)  normally  represent 
less than 10% of total revenue (disregarding the one-time effect of the UK’s withdrawal from the EU on 
the  2020  annual  accounts).  The  overall  amount  of  own  resources  needed  to  finance  the  budget  is 
determined by total expenditure less other revenue. 

Management modes 

The EU budget is implemented in three management modes which determine 
how the money is paid out and managed: 

  Shared management: the vast proportion of the budget (around 3/4 of the budget) is managed 
under  a  system  of  shared  management  by  the  Commission  in  cooperation  with  the  Member 
States, notably in the areas of structural funds and agriculture. 

  Direct  management:  the  Commission  also  manages  programmes  itself  and  can  delegate  the 

implementation of specific programmes to executive agencies. 

 

Indirect  management:  Expenditure  decisions  can  also  be  indirectly  managed  via  other  bodies 
within  or  outside  the  EU.  The  Financial  Regulation  and/or  contribution  agreements  define  the 
necessary  control  and  reporting  mechanisms  by  these  entities  and  the  supervision  by  the 
Commission where budget implementation tasks are entrusted to national agencies, the European 
Investment Bank Group,  third  countries, international  organisations (e.g. the World Bank or the 
United Nations) and other entities (e.g. EU decentralised agencies, Joint Undertakings). 

Financial Regulation 

The  Financial Regulation  (FR)  9  applicable to  the general  budget  is a central 
act in the regulatory architecture of the EU´s finances. It defines in detail the 
financial rules applicable to the execution of the EU budget and the roles of 
the different actors involved in ensuring that the money is used soundly and  

achieves the objectives set. 

9   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  and  repealing  Council  Regulation  (EU,  Euratom)  No 
2012/966 – OJ L 193 of 30 July 2018, p. 1. 

32 

 
 
 
 
 
 
 
 
                                                 
Annual accounts of the European Union 2020 

8.2.  GOVERNANCE AND ACCOUNTABILITY 

8.2.1. 

Institutional structure 

The EU has an institutional framework which aims to promote its values, advance its objectives, serve its 
interests, those of its citizens and those of the Member States, and ensure the consistency, effectiveness 
and  continuity  of  its  policies  and  actions.  The  organisational  structure  consists  of  institutions,  agencies 
and  other  EU  bodies,  which  are  included  in  the  EU  consolidated  accounts,  as  far  as  the  consolidation 
criteria  as  set  out  in  the  FR  and  the  applicable  accounting  rules  are  met  (please  see  note  9  of  the  EU 
consolidated annual accounts for the list of entities included in the scope of consolidation). 

The  European  Parliament,  jointly  with  the  Council,  exercises  legislative  and  budgetary  functions.  The 
Commission  is  politically  accountable  to  the  European  Parliament.  The  Council  also  carries  out  policy-
making and coordinating functions within the general political direction and priorities of the Union set by 
the European Council. 

The European Commission is the executive arm of the European Union. It promotes the Union’s general 
interest  and  takes  appropriate  initiatives  to  that  end.  It  ensures  the  application  of  the  Treaties  and 
oversees the application of Union law by Member States under the control of the Court of Justice of the 
European  Union.  It  exercises  coordinating,  executive  and  management  functions,  executes  the  budget 
and manages programmes. 

The Commission implements the budget, in large part in cooperation with the Member States.10 Together, 
they  ensure  that  the  appropriations  are  used  in  accordance  with  the  principles  of  sound  financial 
management.  Regulations  lay  down  the  control  and  audit  obligations  of  the  Member  States  when  they 
share  the  implementation  of  the  budget  and  the  resulting  responsibilities.  They  also  lay  down  the 
responsibilities and detailed rules for each of the EU’s institutions as concerns their own expenditure. 

8.2.2. 

The Commission’s governance structure 

The Commission’s governance  arrangements and  how  these  ensure that  the  Commission functions as a 
modern, accountable and performance-oriented institution are described in the Communication, C(2020) 
4240 dd 24.6.2020, on Governance in the European Commission. 

The Commission performs its functions under the leadership of the College of Commissioners, which sets 
priorities  and  takes  overall  political  responsibility  for  the  work  of  the  Commission.  As  a  College,  the 
Commission  works  under  the  political  guidance  of  its  President,  who  presents  the  objectives  he  or  she 
intends to pursue in the form of the President’s political guidelines. The President decides on the internal 
organisation  of  the  Commission,  ensuring  that  it  acts  consistently,  efficiently  and  as  a  collegiate  body. 
The  internal  arrangements  create  a  structure  of  robust  controls  and  management  tools  which  allow the 
College of Commissioners to take political responsibility for the work of the Commission.11 

The  College  delegates  the  operational  implementation  of  the  budget  and  financial  management  to  the 
Directors-General  and  Heads  of  Service  who  lead  the  administrative  structure  of  the  Commission.  This 
decentralised  approach  creates  an  administrative  culture  that  encourages  civil  servants  to  take 
responsibility  for  activities  over  which  they  have  control  and  requires  them  to  provide  assurance  as 
concerns the activities for which they are accountable. 

8.2.3. 

The Commission’s financial management 

In the Commission, the roles and responsibilities in financial management are clearly defined (e.g. in the 
FR  and  the  Internal  Rules12)  and  applied  accordingly.  As  authorising  officers  by  delegation,  the 
Commission’s  Directors-General  and  Heads  of  Service  are  responsible  for  the  sound  financial 

10  See Article 317 TFEU. 
11  As a result, the term 'European Commission' is used to denote both the institution – the College – formed by the 
Members of the Commission, and its administration managed by the Directors-General of its departments (and 
heads of other administrative structures such as services, offices and executive agencies). 

12 Since mid-2019 (further to the revised Article 12 of the Internal Rules) the management of the European 

Development Fund (EDF) is co-delegated among five departments (INTPA (DEVCO), ECHO, EAC, EACEA, JRC). 

33 

 
                                                 
Annual accounts of the European Union 2020 

management  of  EU  resources,  compliance  with  the  provisions  of  the  Financial  Regulation,  risk 
management and establishing an appropriate internal control framework.  

The  responsibility  of  the  Authorising  Officers  covers  the  entire  management  process,  from  determining 
what needs to be done to  achieve the policy  objectives set by the institution to managing the activities 
from  both  an  operational  and  a  sound  financial  management  standpoint.  Tasks  can  further  be  sub-
delegated  to  Directors,  Heads  of  Unit  and  others,  who  thereby  become  Authorising  Officers  by  Sub-
Delegation.  Each  authorising  officer  by  delegation  may  rely  on  one  or  two  directors  in  charge  of  risk 
management and internal control to oversee and monitor the implementation of internal control systems.  

The  Commission’s  central  services  provide  guidance  and  advice  and  promote  best  practices,  including 
through the work of the Corporate Management Board.  

The  FR  requires  each  authorising  officer  to  prepare  an  annual  activity  report  (AAR)  detailing 
achievements, internal  control  and  financial management activities during the year. The AAR includes  a 
declaration  that  resources  have  been  used  based  on  the  principles  of  sound  financial  management  and 
that control procedures are in place which provide the necessary guarantees concerning the legality and 
regularity  of  the  underlying  transactions.  The  Annual  Management  and  Performance  Report  for  the  EU 
budget  is  the  main  instrument  through  which  the  College  of  Commissioners  assumes  political 
responsibility for the financial management of the EU budget. 

The  Accounting  Officer  of  the  Commission  is  centrally  responsible  for  treasury  management,  recovery 
procedures,  laying  down  accounting  rules  based  on  International  Public  Sector  Accounting  Standards 
(IPSAS), validating accounting systems and the preparation of the Commission's and consolidated annual 
accounts of the EU. Furthermore, the Accounting Officer is required to sign the annual accounts declaring 
that  they  present  fairly,  in  all  material  aspects,  the  financial  position,  the  results  of  the  operations  and 
the  cash  flows  of  the  Union.  The  annual  accounts  are  adopted  by  the  College  of  Commissioners.  The 
Accounting  Officer  is  an  independent  function  and  bears  a  major  responsibility  as  regards  financial 
reporting in the Commission.  

The  Internal Auditor  of the Commission is likewise a centralised  and  independent function  and  provides 
independent  advice,  opinions  and  recommendations  on  the  quality  and  functioning  of  internal  control 
systems inside the Commission, EU agencies and other autonomous bodies.  

The Audit Progress Committee ensures the independence of the Internal Auditor and monitors the quality 
of internal audit work and the follow-up given by the Commission services to internal and external audit 
recommendations,  as  well  as  to  the  European  Court  of  Auditors’  discharge  related  findings  and 
recommendations  on  the  reliability  of  the  annual  consolidated  EU  accounts.  The  advisory  role  of  the 
committee  contributes  to  the  overall  further  improvement  of  the  Commission’s  effectiveness  and 
efficiency  in  achieving  its  goals  and  facilitates  the  College’s  oversight  of  the  Commission’s  governance, 
risk management, and internal control practices. 

8.2.4.  External audit and discharge procedure 

In  line  with  the  principles  of  sound  financial  management,  funds  must  be  managed  in  an  effective, 
efficient and economic manner. An accountability framework based on comprehensive reporting, external 
audit  and  political  control  exists  to  provide  reasonable  assurance  that  EU  funds  are  spent  in  a  proper 
manner. 

Every  year  the  European  Court  of  Auditors  examines  the  reliability  of  the  accounts,  whether  all 
revenue has been received and all expenditure incurred in a lawful and regular manner and whether the 
financial  management  and  the  qualitative  aspects  of  budgeting,  including  the  performance  dimension, 
have been sound. The publication of the annual report of the European Court of Auditors is the starting 
point for the discharge procedure. The auditors also prepare special reports on specific spending or policy 
areas, or on budgetary or management issues. 

The  European  Parliament  decides,  after  a  recommendation  by  the  Council,  on  whether  or  not  to 
provide its final approval, known as ‘granting discharge’, on the way the Commission implemented the EU 
budget in a given  year.  The annual discharge  procedure ensures that the  Commission is held  politically 
accountable for the implementation of the EU budget. 

The decision on the discharge is also based on the Commission’s integrated financial and accountability 
reporting,  on  hearings  of  Commissioners  in  the  European  Parliament  and  on  the  replies  provided  to 
written questions addressed to the Commission. 

34 

 
Annual accounts of the European Union 2020 

NOTE ACCOMPANYING THE 
CONSOLIDATED ACCOUNTS 

The  consolidated  annual  accounts  of  the  European Union  for  the  year  2020  have  been  prepared  on  the 
basis  of  the  information  presented  by  the  institutions  and  bodies  under  Article  246(2)  of  the  Financial 
Regulation  applicable  to  the  general  budget  of  the  European  Union.  I  hereby  declare  that  they  were 
prepared  in  accordance  with  Title  XIII  of  this  Financial  Regulation  and  with  the  accounting  principles, 
rules and methods set out in the notes to the financial statements. 

I have obtained from the accounting officers of these institutions and bodies, who certified its reliability, 
all the information  necessary  for the production of the accounts that show the European Union'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 of the European Commission, I have a reasonable assurance that the accounts present fairly, in 
all  material  aspects,  the  financial  position,  the  results  of  the  operations  and  the  cashflows  of  the 
European Union. 

Rosa ALDEA BUSQUETS 

Accounting Officer of the Commission 

18 June 2021 

35 

 
 
 
 
 
 
Annual accounts of the European Union 2020 

EUROPEAN UNION 
FINANCIAL YEAR 2020 

CONSOLIDATED 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.

36 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

CONTENTS 

BALANCE SHEET .............................................................................................. 38 

STATEMENT OF FINANCIAL PERFORMANCE ......................................................... 39 

CASHFLOW STATEMENT ................................................................................... 40 

STATEMENT OF CHANGES IN NET ASSETS .......................................................... 41 

NOTES TO THE FINANCIAL STATEMENTS ............................................................ 42 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

SIGNIFICANT ACCOUNTING POLICIES ..................................................... 43 

NOTES TO THE BALANCE SHEET ............................................................. 58 

NOTES TO THE STATEMENT OF FINANCIAL PERFORMANCE ........................ 91 

CONTINGENT LIABILITIES AND ASSETS .................................................. 99 

BUDGETARY AND LEGAL COMMITMENTS ............................................... 104 

FINANCIAL RISK MANAGEMENT ............................................................ 108 

RELATED PARTY DISCLOSURES ............................................................ 120 

EVENTS AFTER THE BALANCE SHEET DATE ............................................ 122 

SCOPE OF CONSOLIDATION ................................................................. 123 

37 

 
 
 
Annual accounts of the European Union 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 

Reserves 
Amounts to be called from Member States* 
NET ASSETS 

Note 

 EUR million 
31.12.2020  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 

2.14 
2.15 

 620 
11 682 
 588 
99 214 
34 519 
45 813 
192 434 

13 881 
28 229 
28 681 
 80 
16 742 
87 613 
280 047 

 515 
11 380 
 591 
66 714 
26 240 
3 607 
109 047 

4 514 
25 206 
20 367 
 68 
19 745 
69 900 
178 947 

(116 020) 
(3 878) 
(84 399) 
(204 297) 

(97 659) 
(3 707) 
(53 071) 
(154 437) 

(1 527) 
(10 649) 
(32 408) 
(64 584) 
(109 167) 
(313 464) 

(1 116) 
(1 446) 
(27 241) 
(67 230) 
(97 033) 
(251 470) 

(33 418) 

(72 523) 

5 062 
(38 480) 
(33 418) 

5 037 
(77 560) 
(72 523) 

*  The  European  Parliament  adopted  a  budget  on  18  December  2020  which  provides  for  the  payment  of  the  Union'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. 

38 

 
 
 
 
 
 
   
 
 
 
   
 
 
 
 
 
 
   
 
   
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

STATEMENT OF FINANCIAL PERFORMANCE 

Note 

2020 

2019      

EUR million 

REVENUE 
Revenue from non-exchange transactions 
GNI resources 
Traditional own resources 
VAT resources 
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 and 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 international 
organisations 
Implemented by other entities 
Staff and pension costs 
Finance costs 
Other expenses 
Total Expenses 
ECONOMIC RESULT OF THE YEAR 

3.1 
3.2 
3.3 
3.4 
3.5 
3.6 
3.7 

3.8 
3.9 

3.10 

3.11 

3.12 

3.12 

3.12 
3.13 
3.14 
3.15 

125 393 
19 559 
17 858 
 452 
1 355 
47 456 
7 116 
219 190 

3 434 
1 404 
4 838 
224 028 

108 820 
21 235 
18 128 
4 291 
2 627 
– 
2 072 
157 174 

1 817 
1 298 
3 116 
160 289 

(40 461) 

(43 951) 

(14 467) 

(13 541) 

(41 118) 

(13 677) 
(2 701) 

(35 178) 

(11 218) 
(2 608) 

(22 094) 

(18 942) 

(3 530) 

(3 131) 

(4 178) 
(3 257) 
(11 995) 
(2 188) 
(6 946) 
(166 612) 
57 416 

(4 085) 
(2 875) 
(11 613) 
(1 491) 
(6 862) 
(155 493) 
4 796 

39 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 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 
57 416 

 113 
1 047 
(40 624) 
(11 301) 

(50 519) 

 (12) 
18 360 
 581 
40 531 
5 166 
(2 645) 
(3 218) 

EUR million 
2019 
4 796 

 107 
1 022 
1 255 
(1 472) 

 691 

 5 
17 203 
 693 
(1 389) 
(4 985) 
4 041 
(1 803) 

(15 155) 

(14 164) 

 63 

 111 

(1 566) 

(1 392) 

 3 

 (1) 

(1 180) 

(2 964) 

 (62) 

(3 004) 

(3 004) 
19 745 
16 742 

 (121) 

1 633 

1 633 
18 113 
19 745 

40 

 
  
 
 
 
 
 
 
 
 
 
 
STATEMENT OF CHANGES IN NET ASSETS 

Annual accounts of the European Union 2020 

BALANCE AS AT 31.12.2018 
Movement in Guarantee Fund reserve 
Fair value movements 
Remeasurements in employee benefits liabilities 
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 liabilities 
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) 
(66 424) 
 (21) 
– 
(14 164) 
 56 
(1 803) 
4 796 
(77 560) 
 (173) 
– 
(15 155) 
 210 
(3 218) 
57 416 
(38 480) 

Other reserves  Fair value reserve 

Net Assets  

EUR million 

4 730 
 21 
– 
– 
 (105) 
– 
– 
4 646 
 173 
– 
– 
 (252) 
– 
– 
4 566 

 231 
– 
 160 
– 
– 
– 
– 
 391 
– 
 105 
– 
– 
– 
– 
 496 

(61 464) 
– 
 160 
(14 164) 
 (49) 
(1 803) 
4 796 
(72 523) 
– 
 105 
(15 155) 
 (42) 
(3 218) 
57 416 
(33 418) 

41 

 
 
 
 
 
 
 
 
  
  
Annual accounts of the European Union 2020 

NOTES TO THE FINANCIAL STATEMENTS 

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. 

42 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

1. 

SIGNIFICANT ACCOUNTING POLICIES 

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 
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, 

43 

 
Annual accounts of the European Union 2020 

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  Common  and  Foreign  Security  Policy).  The  European  Coal  and  Steel 
Community in Liquidation (ECSC i.L.) is also considered as a controlled entity. The EU’s only associate is 
the European Investment Fund (EIF). 

44 

 
Annual accounts of the European Union 2020 

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  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. 

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. 

45 

 
Transactions and balances 

Annual accounts of the European Union 2020 

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 
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. 

46 

 
1.5.2. 

Property, plant and equipment 

Annual accounts of the European Union 2020 

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. 

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. 

47 

 
Annual accounts of the European Union 2020 

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. 

(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. 

48 

 
 
(iii) Held-to-maturity investments 

Annual accounts of the European Union 2020 

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 
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. 

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Subsequent measurement 

Annual accounts of the European Union 2020 

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 
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. 

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(b) 

Assets carried at fair value 

Annual accounts of the European Union 2020 

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 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. 

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 

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Annual accounts of the European Union 2020 

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: 

i. 

Pension Scheme of European Officials (PSEO): The benefits granted under this notionally funded13 
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  

13  The  PSEO  is  a  notional  (virtual)  fund  with  defined  benefits  in  which  staff’s  contributions  serve  to  finance  their 
future pensions. Although there is no actual investment fund, the amount that would have been collected by such a 
fund  is  considered  to  have  been  invested  in  the  Member States’  long-term  bonds  and is  reflected  in  the  pension 
liability  that  is  registered  in  the  annual  accounts  of  the  European  Union.  Member  States  jointly  guarantee  the 
payment of the benefits pursuant to Article 83 of the Staff Regulations and Article 4(3) of the Treaty on European 
Union (see COM(2018) 829 for a detailed description of the scheme). 

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bodies  or  are  survivors  of  deceased  officials  or  pensioners.  Staff  contribute  one  third  of  the 
expected cost of these benefits from their salaries.  

ii. 

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. 

1.5.11.  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). 

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Annual accounts of the European Union 2020 

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. 

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. 

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1.5.14.  Accrued and deferred revenue and charges 

Annual accounts of the European Union 2020 

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: 

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. 

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Annual accounts of the European Union 2020 

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. 

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. 

56 

 
Annual accounts of the European Union 2020 

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. 

57 

 
Annual accounts of the European Union 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 

1 230 
 216 
 (39) 
0 
 2 
1 409 
 (715) 
 (113) 
0 
 38 
0 
0 
 (789) 

 620 
 515 

The above amounts relate primarily to computer software.  

2.2.  PROPERTY, PLANT AND EQUIPMENT 

The space assets category covers operational fixed assets related to the two EU space programmes: the 
Global Navigation Satellite Systems (GNSS), i.e. Galileo and European Geostationary Navigation Overlay 
System  (EGNOS),  and  the  Copernicus  European  Earth  observation  programme.  Assets  of  the  space 
systems  which  are  not  yet  operational  are  included  under  the  heading  ‘Assets  under  construction’.  The 
assets  related  to  the  EU  space  programmes  are  being  built  with  the  assistance  of  the  European  Space 
Agency (ESA). 

For  Galileo,  no  new  satellites  became  operational  in  2020.  The  constellation  includes  26  satellites.  The 
Galileo operational fixed assets, covering both satellites and ground installations, amounted to EUR 2 145 
million at 31 December 2020, net of accumulated depreciation (2019: EUR 2 489 million). The remaining 
assets  under  construction  total  EUR 1 872 million  (2019:  EUR 1  361  million).  The  development  of  the 
Galileo system  will continue until the system  reaches its full operational capacity. When completed,  the 
Galileo constellation will comprise 30 satellites (including 6 spare satellites). 

Regarding  Copernicus,  no  new  satellites  became  operational  in  2020.  The  total  value  of  Copernicus 
operational fixed assets is EUR 877 million (2019: EUR 1 153 million), net of accumulated depreciation. A 
further  EUR 1 894 million  related  to  Copernicus  satellites  is  recognised  as  assets  under  construction 
(2019:  EUR 1 453 million).  This  increase  includes  EUR  266  million  regarding  the  satellite  6A,  whose 
ownership was received from ESA on 21 November 2020, date of its lift-off. It is expected to be declared 
operational following controls in mid-2021. 

Fixed  assets  related  to  the  EGNOS  ground  infrastructure  of  EUR 24  million  (2019:  EUR 37  million)  are 
also included under the heading ‘Space assets’. In addition, EGNOS assets under construction amount to 
EUR 273 million (2019: EUR 238 million). 

58 

 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

Property, plant and equipment 

Gross carrying amount at 31.12.2019 

Additions 

Disposals 

Transfer between asset categories 

Other changes 

Gross carrying amount at 31.12.2020 

Land and 
Buildings 
5 895 

 15 

 (0) 

 26 

 (11) 

5 924 

Space 
assets 
5 680 

 6 

 (16) 

– 

– 

5 670 

Accumulated depreciation at 31.12.2019 

(3 503) 

(2 001) 

Depreciation charge for the year 

 (185) 

 (635) 

Depreciation written back 

Disposals 

Transfer between asset categories 

Other changes 

– 

 0 

– 

 11 

– 

 10 

– 

– 

Plant and 
Equipment 
 542 

Furniture and 
Vehicles 
 259 

Computer 
Hardware 
 644 

Other 

 325 

 12 

 (20) 

 14 

 (0) 

Finance 
leases 
2 638 

 Assets under 
construction 
3 653 

 18 

 (2) 

 (3) 

 (0) 

1 155 

 (1) 

 (52) 

 (8) 

EUR million 

Total 

19 635 

1 369 

 (106) 

 0 

 (29) 

 13 

 (6) 

 7 

 (0) 

 123 

 (45) 

 5 

 0 

 272 

 727 

 332 

2 650 

4 748 

20 868 

 (194) 

 (533) 

 (255) 

(1 313) 

 (15) 

 (67) 

 (23) 

 (93) 

 0 

 6 

 (0) 

 0 

 0 

 45 

 (2) 

 0 

 0 

 20 

 0 

 0 

– 

 1 

 2 

– 

(8 255) 

(1 051) 

 0 

 98 

 (0) 

 21 

 27 

 (16) 

 3 

 (10) 

 546 

 (457) 

 (33) 

– 

 16 

 0 

 10 

Accumulated depreciation at 31.12.2020 

(3 676) 

(2 625) 

 (465) 

 (203) 

 (557) 

 (259) 

(1 402) 

(9 186) 

NET CARRYING AMOUNT AT 31.12.2020 

NET CARRYING AMOUNT AT 31.12.2019 

2 249 

2 392 

3 045 

3 679 

 81 

 85 

 69 

 65 

 170 

 110 

 73 

 70 

1 248 

1 325 

4 748 

3 653 

11 682 

11 380 

59 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 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.  The  EIF  is  the  EU's  financial  institution 
specialising in providing risk capital and guarantees to Small and Medium-sized Entities (SMEs). The EIF 
is located in Luxembourg and operates as a private-public partnership, whose members are the European 
Investment Bank (EIB), the EU and a group of financial institutions. At 31 December 2020, the EU held 
29.7% of ownership interests in the EIF (2019: 29.7%) and 29.7% of the voting rights (2019: 29.7%). 
In accordance with its statutes, the EIF is required to allocate at least 20% of its annual net result to a 
statutory reserve, until the aggregate reserve amounts to 10% of subscribed capital. This reserve is not 
available for distribution. 

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

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

The following carrying amounts are attributable to the EU based on its percentage of participation: 

Assets 
Liabilities 
Revenue 
Expenses 
Surplus/(deficit) 

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  EU,  represented  by  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 

60 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 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 
ECSC in Liquidation 
European Bank for Reconstruction and Development 
EEAS local staff pension plan 

Guarantee Funds for budgetary guarantees: 
EFSI Guarantee Fund 
Guarantee Fund for external actions 
EFSD Guarantee Fund 

Financial Instruments financed 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 

16 134 
 193 
82 887 
99 214 

3 453 
 6 
10 422 
13 881 
113 095 

15 211 
 134 
51 368 
66 714 

3 196 
 3 
1 316 
4 514 
71 228 

31.12.2020 
1 598 
1 445 
 188 
 73 
3 304 

EUR million 
31.12.2019 
1 863 
1 459 
 188 
 75 
3 585 

7 526 
2 794 
 692 
11 012 

3 097 
 764 
 533 
 163 
 143 
 104 
 96 
 82 
 289 
5 271 
19 587 
16 134 
3 453 

6 654 
2 545 
 595 
9 794 

2 455 
 699 
 507 
 166 
 70 
 105 
 597 
 112 
 317 
5 028 
18 407 
15 211 
3 196 

Out  of  the  total  of  EUR  19  587  million,  the  EU  holds  available  for  sale  financial  assets  in  the  form  of 
investments in:  

  Debt securities (e.g. bonds) of EUR 14 862 million (2019: EUR 14 998 million);  

 

Equity instruments of EUR 4 071 million (2019: EUR 2 801 million); and  

  Money market funds (such as the EIB Unitary Fund) of EUR 654 million (2019: EUR 608 million).  

BUFI investments 

Provisionally  cashed  fines  related  to  competition  cases  are  allocated  to  a  dedicated  fund  (BUFI  Fund  – 
'Budget Fines' Fund) and are invested by the Commission in debt instruments categorised as available for 
sale financial assets. 

61 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ECSC in Liquidation 

Annual accounts of the European Union 2020 

Regarding  the  European  Coal  and  Steel  Community  in  Liquidation  (ECSC  i.L.),  all  available  for  sale 
financial assets are debt securities denominated in EUR and quoted in an active market. 

European Bank for Reconstruction and Development 

The  EU  holds  a  financial  investment  in  the  capital  of  the  European  Bank  for  Reconstruction  and 
Development  (EBRD),  in  which  the  number  of  shares  held  at  31  December  2020  were  90 044 
(2019: 90 044  shares),  representing  3%  of  the  total  subscribed  share  capital.  The  EU  subscribed  for  a 
total  amount  of  EUR  900  million  of  share  capital,  out  of  which  EUR  713  million  is  currently  uncalled. 
According to the agreement establishing the  EBRD,  the  shareholders have some contractual restrictions 
such as the fact that the shares are not transferable and their redemption is capped at the maximum of 
the original purchase cost. The EU measures the investment in EBRD at fair value. The original purchase 
cost  is  considered  to  be  the  best  estimate  of  the  fair  value,  in  particular  due  to  the  contractual 
restrictions  referred  to  above.  Although  EBRD's  shares  are  not  quoted  on  any  stock  exchange  market, 
there were recent transactions in the investee's equity (issuance of capital at par value), indicating that 
cost is the best estimate of the fair value in this situation. 

GUARANTEE FUNDS FOR BUDGETARY GUARANTEES 

EFSI Guarantee Fund 

Pursuant  to  the  EFSI  Regulation  (Regulation  (EU)  2015/2017),  the  EFSI  Guarantee  Fund  has  been 
established  to  provide  a liquidity  cushion  against  potential  losses  incurred  by  the  EIB  in  relation  to  its 
financing and investment operations eligible for the EFSI EU guarantee under the EFSI Agreement  – see 
note 4.1.1. The EFSI Guarantee Fund is financed by contributions from the EU budget. It is also endowed 
by returns on guarantee fund resources  invested, revenues received by the EU  as remuneration for the 
guarantee  under  the  EFSI  Agreement,  and  amounts  recovered  by  the  EIB  from  defaulting  debtors  in 
respect of previous guarantee  calls. At the end of  2020, the assets of the EFSI guarantee fund totalled 
EUR  8  028  million  (2019:  EUR 6  688  million),  of  which  EUR  7  526  million  was  invested  in  available  for 
sale financial assets (2019: EUR 6 654 million). Another EUR 931 million (2019: EUR 1 879 million) have 
been committed but not yet paid into the fund and are included in the budgetary RAL, and also disclosed 
as  outstanding  commitments  not  yet  expensed  in  note  5.1.  The  fund  will  be  progressively  provisioned 
and will gradually reach EUR 9.1 billion, i.e. 35% of the total EU EFSI guarantee obligations. 

Guarantee Fund for external actions 

The  Guarantee  Fund  for  external  actions  covers  loans  guaranteed  by  the  EU  budget,  in  particular  EIB 
lending  operations  outside  the  EU,  financed  from  the  EIB's  own  resources  and  loans  under  macro-
financial assistance (MFA) and Euratom loans outside the EU  – see note 4.1.1. The fund is managed by 
the  EIB  and  is  intended  to  cover  any  defaulting  loans  guaranteed  by  the  EU.  The  fund  is  endowed  by 
payments from the EU budget, the proceeds from interest on investments made from the fund's assets, 
and amounts recovered from defaulting debtors for whom the fund has had to activate its guarantee. The 
Guarantee Fund for external actions should be maintained at a target amount corresponding to 9% of the 
guaranteed  loans  outstanding  at  year-end.  The  difference  between  the  target  amount  and  the  value  of 
the fund's assets at year-end will be covered from the EU budget in year N+2, while any surplus is paid 
back to the EU budget. At the end of 2020, the assets of the Guarantee Fund for external actions totalled 
EUR  2  813  million  (2019:  EUR 2  590  million),  of  which  EUR  2  794  million  was  invested  in  available  for 
sale financial assets (2019: EUR 2 545 million). 

EFSD Guarantee Fund 

Pursuant  to  the  EFSD  Regulation  (Regulation  (EU)  2017/1601)  the  EFSD  Guarantee  Fund  has  been 
established to provide a liquidity cushion to be used in the event of a call on the Union guarantee given 
pursuant  to  the  relevant  EFSD  guarantee  agreements.  The  EFSD  Guarantee  Fund  is  financed  by 
contributions from the EU budget and from contributions from the 11th EDF to the EU budget, along with 
voluntary contributions from Member States and other contributors. The fund is also endowed by returns 
on  invested  resources,  amounts  recovered  from  defaulting  debtors,  revenues  and  any  other  payments 
received by the EU  in accordance  with  the  EFSD  guarantee agreements. The EFSD  Guarantee Fund has 
been provisioned up to EUR 750 million, i.e. 50% of total future EFSD guarantee obligations covered by 
the EU budget, and further increased by other contributions. At the end of 2020, the assets of the EFSD 
Guarantee Fund totalled EUR 804 million (2019: EUR 600 million), of which EUR 692 million is invested in 
available for sale financial assets (2019: EUR 595 million). 

62 

 
Annual accounts of the European Union 2020 

FINANCIAL INSTRUMENTS FINANCED BY THE EU BUDGET 

Horizon 2020 

Under  the  EU  Regulation  establishing  Horizon  2020  –  the  Framework  Programme  for  Research  and 
Innovation (2014-2020), new financial instruments have been established in order to enhance access to 
finance to entities engaged in research and innovation (R&I). These instruments are:  

 

 

 

 

The  InnovFin  Loan  and  Guarantee  Service  for  R&I  under  which  the  Commission  shares  the 
financial risk related to a portfolio of new financing operations entered into by the EIB; 

The InnovFin SME Guarantee  and  the  SME  Initiative Uncapped Guarantee Instrument (SIUGI)  – 
guarantee facilities managed by the EIF providing guarantees and counter-guarantees to financial 
intermediaries for new portfolios of loans (under SIUGI the Commission shares the financial risk 
related to the guarantee given with Member States, EIF and EIB);  

The  InnovFin  Equity  Facility  for  R&I  providing  for  investments  in  venture  capital  funds  which  is 
managed by the EIF; and 

The EIC Fund (European Innovation Council  Fund)  which  provides equity  financing  to accelerate 
innovation and market deployment actions. The EIC fund will be primarily funded from the 2021-
2027  MFF  under  the  Horizon  Europe  framework  programme.  However,  the  Commission  has 
committed resources available under the H2020 for a pilot facility that set up the EIC fund. 

Connecting Europe Facility 

Pursuant  to  Regulation  (EU)  No  2013/1316,  the  Connecting  Europe  Facility  (CEF)  debt  instrument  has 
been established with the objective to facilitate infrastructure projects’ access to financing in the sectors 
of transport, telecommunications and energy. It is managed by the EIB under an agreement with the EU. 
The CEF debt financial instrument is the continuity of the Loan Guarantee Instrument for TEN-T projects 
(LGTT) and of the pilot phase of the Project Bond Initiative (PBI). It offers risk sharing for debt financing 
in  the  form  of  senior  and  subordinated  debt  or  guarantee  as  well  as  support  for  project  bonds.  After 
19 June 2019, with the effect of the first amendment of the delegation agreement with the EIB, all CEF 
operations  deployed  by  the  EIB  are  assigned  to  one  of  the  two  portfolios:  debt  portfolio  or  non 
securitisable financing portfolio, for which a new portfolio-based risk sharing approach is introduced.  

EU SME Equity Facilities 

These are equity instruments financed by the COSME, the CIP and MAP programmes and the Growth and 
Employment Initiative, under the trusteeship of the EIF, supporting the creation and financing of EU SMEs 
in their early (start-up) and growth stages by investing in suitable specialised venture capital funds. 

Risk-Sharing Finance Facility 

Under the Risk-Sharing Finance Facility, the EU guarantees to EIB, loans and guarantees the EIB gives to 
eligible research projects. The available for sale assets under this heading, are used to provision the EU’s 
financial  risk  from  calls  the  EIB  may  make  on  the  EU  guarantee.  In  total,  an  EU  budget  of  up  to 
EUR 1 billion was allocated to the RSFF under the 2007-2013 MFF. Under the 2014-2020 MFF, there were 
no  new  budget  contributions  foreseen  for  the  RSFF.  Given  that  a  significant  portion  of  the  RSFF 
outstanding operations has been already repaid to the EIB, in 2019 and 2020 the EIB partially released 
the  EU  guarantee.  This  resulted  in  a  decrease  in  the  EU  contingent  liability  (see  note  4.1.3). 
Subsequently, at the end of 2020 the EU available for sale assets are significantly lower, as in 2020 the 
EIB  repaid  EUR  500  million  of  the  EU  contribution  to  the  Commission  which  was  primarily  used  to 
reinforce the EU financial instruments under the Horizon 2020. 

63 

 
2.4.2. 

Financial assets at fair value through surplus or deficit 

Annual accounts of the European Union 2020 

Type of derivative 

Foreign currency forward contract 
Guarantee on equity portfolio 
Total 
Non-current 
Current 

31.12.2020 

31.12.2019 

Notional 
amount  

Fair value 

Notional 
amount  

Fair value 

EUR million 

 417 
3 197 
3 614 
3 197 
 417 

 6 
 193 
 199 
 193 
 6 

 393 
1 439 
1 832 
1 439 
 393 

 3 
 134 
 137 
 134 
 3 

The EU enters into foreign currency forward contracts in order to hedge the foreign currency risk related 
to USD denominated debt securities held in the EFSI Guarantee Fund. Under the foreign currency forward 
contracts,  the  EU  delivers  the  contractually  agreed  notional  amount  in  foreign  currency  ('pay  leg'),  as 
presented in the table above, and will receive the notional amount in EUR ('receive leg') at the maturity 
date.  Such  derivative  contracts  are  measured  at  fair  value  at  the  balance  sheet  date  and  classified  as 
either financial assets or financial liabilities at fair value through surplus or deficit depending on whether 
their fair value is positive or negative. 

The heading ‘Guarantee on equity portfolio’ comprises guarantees given by the EU to financial institutions 
on  portfolios of  equity investments that  are  classified  as  derivative  financial  instruments  and  accounted 
for  as  a  financial  asset  or  financial  liability  at  fair  value  through  surplus  or  deficit.  The  total  amount 
represents  mainly  the  EFSI  guarantee  given  by  the  EU  to  the  EIB  Group  with  underlying  equity 
investments  disbursed  by  the  EIB  and  EIF  amounting  to  EUR 2  223 million  (2019:  EUR  1  420  million). 
The  fair  value  of  the  EU  guarantee  on  the  EFSI  equity  portfolios  totalled  EUR 164 million  (2019: 
EUR 134 million). 

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 
15 383 
2 712 

1 691 

19 786 

EUR million 
31.12.2019 
15 482 
1 543 

1 518 

18 544 

During the period there were no transfers between level 1 and level 2. 

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 

64 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

2.4.3. 

Loans 

Loans for financial assistance 
Loans for budget programmes and term deposits 
Total 
Non-current 
Current 

2.4.3.1.  Loans for financial assistance 

Note 
2.4.3.1 
2.4.3.2 

31.12.2020 
93 193 
 116 
93 309 
82 887 
10 422 

EUR million 
31.12.2019 
52 564 
 121 
52 684 
51 368 
1 316 

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 

EUR million 
Total 

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

 214 
 100 
 (35) 
– 
 0 
– 
 279 
 250 
 29 

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

The nominal value of loans for financial assistance at 31 December 2020 totals EUR 92 565 million (2019: 
EUR 51 941 million). The change in carrying amount corresponds to the change in accrued interests. 

The European Financial Stabilisation Mechanism (EFSM) enables the granting of financial assistance to a 
Member  State  in  difficulties,  or  seriously  threatened  by  severe  difficulties  caused  by  exceptional 
circumstances beyond its control. The assistance may take the form of a loan or credit line. The ECOFIN 
Council  conclusions  of  9 May 2010  restrict  the  facility  to  EUR 60 billion  but  the  legal  limit  restricts  the 
outstanding  amount  of  loans  or  credit  lines  to  the  margin  available  under  the  own  resources  ceiling. 
Borrowings  related  to  loans  disbursed  under  the  EFSM  are  guaranteed  by  the  EU  budget.  It  is  not 
foreseen  that  the  EFSM  will  engage  in  new  financing  programmes  or  enter  into  new  loan  facility 
agreements. 

Support to mitigate Unemployment Risks in an Emergency (SURE) is the new European instrument that 
helps to maintain people in work and jobs affected by the coronavirus pandemic. The instrument enables 
Member States to request EU financial assistance to help finance sudden and severe increases of national 
public expenditure related to national short-time work schemes and similar measures, including for self-
employed persons, or to some health-related measures, in particular in the work place in response to the 
crisis. It can provide financial assistance of up to EUR 100 billion in the form of loans to affected Member 
States.  The  instrument  is  underpinned  by  EUR  25  billion  of  guarantees  that  the  Member  States  have 
provided to the Commission. In accordance with the Council Regulation (EU) 2020/672, the Commission 
can enter into a loan agreement with a Member State only after the Commission has proposed, and the 
Council has adopted, an implementing decision for SURE financial assistance. At 31 December 2020, the 
Council had approved EUR 90 363 million of financial assistance, out of which the Commission had signed 
loan  agreements  with  Member  States  for  EUR  85  863  million  and  had  disbursed  EUR  39  500  million  to 
Member States (nominal amounts).  The  remaining signed loan agreement amounts are  being disbursed 
in 2021. For the contingent liabilities related to SURE loans see also note 4.1.2. 

The  Balance  of  Payments  (BOP)  facility,  a  policy-based  financial  instrument,  provides  medium-term 
financial assistance to Member States of the EU that have not adopted the Euro. It enables the granting 
of  loans  to  Member  States  who  are  experiencing,  or  are  seriously  threatened  by,  difficulties  in  their 
balance  of  payments  or  capital  movements.  The  maximum  outstanding  amount  of  loans  granted  under 
the instrument is limited to EUR 50 billion. Borrowings related to these BOP loans are guaranteed by the 
EU budget.  

MFA  (Macro-Financial  Assistance)  is  a  form  of  financial  aid  extended  by  the  EU  to  partner  countries 
experiencing a balance of payment crisis. It takes the form of medium or long term loans or grants or an 
appropriate combination of both and generally complements financing provided in the context of an IMF-
supported  adjustment  and  reform  program.  These  loans  are  guaranteed  by  the  Guarantee  Fund  for 
external  actions.  During  the  year  ended  31  December  2020,  further  disbursements  of  loans  under  MFA 
for  a  total  amount  of  EUR 1  675 million  were  provided,  thereof  EUR  1  100  million  to  Ukraine,  EUR  250 

65 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

million  to  Jordan  and  EUR  325  million  to  other  countries.  For  the  contingent  liabilities  related  to  MFA 
loans see also note 4.1.2. 

The  European  Atomic  Energy  Community  (Euratom,  represented  by  the  Commission)  lends  money  to 
both  Member  States  and  non-Member  States,  and  to  entities  of  both,  to  finance  projects  relating  to 
energy installations. Guarantees from third parties of EUR 279 million (2019: EUR 214 million) have been 
received to cover Euratom loans. For the contingent liabilities related to Euratom loans see note 4.1.2. 

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% 

0.00% - 0.30% 

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

31.12.2019 
0.50% - 3.75% 

– 

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

2.4.3.2.  Loans for budget programmes and term deposits 

The loans for budget programmes include: loans that are granted at preferential conditions as part of co-
operation  with  non-Member  States  (e.g.  under  the  MEDA  programme  Euro-Mediterranean  partnership), 
loans  granted  under  the  EU  Employment  and  Social  Innovation  Programme  and  under  the  EU 
Electrification Financing Initiative. 

Term  deposits include  amounts  with  maturity  of  over  3  months  that do  not meet the  definition of  cash 
equivalents. 

The nominal value of loans for budget programmes and term deposits amounts to EUR 768 million (2019: 
EUR 728 million). 

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 
 76 

– 
– 
– 

Subrogated loans are defaulted loans which were granted by the EIB and guaranteed by the EU budget. 
For these loans all rights have been subrogated  to the EU, following the payment of the guarantee calls 
from  the  Guarantee  Fund  for  external  actions  or  from  the  EFSI  Guarantee  Fund.  These  loans  are  fully 
impaired for an amount of EUR 726 million (2019: EUR 658 million). Guarantee calls are partially covered 
by financial provisions made in previous years. Under the relevant agreements between the EU and the 
EIB,  recovery  proceedings  are  undertaken  by  the  EIB  on  behalf  of  the  EU  with  the  aim  to  recover  any 
sums due. 

66 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 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 

Note 

2.5.1 
2.5.2 

2.5.1 
2.5.2 

31.12.2020 

EUR million 
31.12.2019 

30 574 
3 825 
 119 
34 519 

24 902 
3 327 
28 229 
62 748 

22 135 
4 045 
 60 
26 240 

22 314 
2 892 
25 206 
51 446 

The level of pre-financing in the various programmes must be sufficient to ensure the necessary funding 
for the beneficiary to initiate  and  advance  the  project, while also safeguarding the financial interests of 
the EU and taking into consideration legal, operational and cost-effectiveness constraints.  

2.5.1. 

Pre-financing 

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 

EUR million 
Net amount 
at 31.12.2019 

3 193 

23 074 

8 222 

4 192 

– 

3 193 

3 193 

– 

(3 846) 

(1 348) 

(1 520) 

19 229 

17 985 

6 874 

2 672 

6 830 

3 549 

(3 540) 

(1 530) 

(1 463) 

3 193 

14 444 

5 301 

2 086 

38 681 

(6 713) 

31 967 

31 557 

(6 533) 

25 024 

17 031 

18 565 

1 121 

(10 648) 

(10 931) 

 (843) 

6 382 

7 633 

 278 

12 839 

16 522 

 858 

(8 344) 

(10 339) 

 (665) 

4 495 

6 184 

 194 

36 716 

(22 423) 

14 294 

30 219 

(19 347) 

10 872 

1 243 

1 515 

9 068 

11 665 

 (781) 

(1 043) 

(6 020) 

(6 432) 

 462 

 471 

3 048 

5 233 

1 162 

1 491 

8 289 

10 570 

 (678) 

 (861) 

(5 317) 

(6 104) 

23 491 

(14 276) 

9 215 

21 513 

(12 960) 

 484 

 630 

2 972 

4 467 

8 553 

98 888 

(43 412) 

55 476 

83 289 

(38 840) 

44 449 

30 574 

68 314 

– 

(43 412) 

30 574 

24 902 

22 135 

61 154 

– 

(38 840) 

22 135 

22 314 

Pre-financing  represents  money  paid  out,  and  thus  the  implementation  of  payment  appropriations.  As 
explained in note 1.5.7, these are advances and so not yet expensed. Thus while pre-financing reduces 
outstanding  RAL  (see  note  5.1)  it  represents  expenses  still  to  be  accepted  and  recognised  in  the 
statement of financial performance. 

For shared management, almost all pre-financing relates to the programming period 2014-2020. There is 
an  initial  pre-financing  which  will  not  be  cleared  (i.e.  recognised  in  the  statement  of  financial 
performance) before the end of the programming period and is shown as a non-current pre-financing.  

67 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

For  the  cohesion  area,  there  is  also  an  annual  pre-financing  which  is  cleared  on  an  annual  basis  and is 
shown  as  a  current  pre-financing.  However,  due  to  the  COVID-19  pandemic  and  based  on  Coronavirus 
Response  Investment  Initiative  measures,  the  unused  part  of  the  2019  annual  pre-financing  was  not 
recovered  in  2020  as  it  usually  would  be.  The  total  amount,  which  corresponds  to  EUR  6.6  billion,  is 
shown under non-current pre-financing. The non-recovery of the 2019 annual pre-financing in 2020 is an 
important factor explaining the increase in shared management pre-financing at year-end.  

New  pre-financing  payments  made  in  the  cohesion  area  include  the  2020  annual  pre-financing 
(EUR 10 billion), but also payments from the EU Solidarity Fund (EUR 1.1 billion).  

For  direct  management,  the  biggest  part  of  pre-financing  concerns  Research  (mainly  Horizon  2020, 
implemented  by  the  Commission  and  EU  executive  agencies)  and  amounts  to  EUR 9.3  billion  (2019: 
EUR 7.8  billion).  The  increase  is  a  consequence  of  the  agreements  entered  into  during  2020,  for  which 
pre-financing payments were made. 

For indirect management, the  pre-financing covers mainly  internal policies programmes like Galileo and 
EGNOS,  but  also  instruments  related  to  external  relations  like  ENI  (European  Neighbourhood 
Instrument),  DCI  (Development  Cooperation  Instrument)  and  IPA  (Instrument  for  Pre-Accession).  The 
increase  in  pre-financing  to  international  organisations  concerns  mainly  the  above  mentioned  external 
relations instruments.  

Guarantees received in respect of pre-financing 

These  are  guarantees  that  the  Commission  requests  in  certain  cases  from  beneficiaries  that  are  not 
Member  States,  when  making  advance  payments  (pre-financing).  There  are  two  values  to  disclose  for 
this  type  of  guarantee,  the  ‘nominal’  and  the  ‘on-going’  values.  For  the  nominal  value,  the  generating 
event  is  linked  to  the  existence  of  the  guarantee.  For  the  on-going  value,  the  guarantee’s  generating 
event is the pre-financing payment made against the guarantee, then reduced by  subsequent clearings. 
At 31 December 2020 the nominal value of guarantees received in respect of pre-financing amounted to 
EUR 466  million  while  the  on-going  value  of  those  guarantees  was  EUR 402  million  (2019: 
EUR 492 million and EUR 406 million respectively). 

Certain pre-financing amounts paid out under the 7th Research Framework Programme for research and 
technological  development  (FP7)  and  under  Horizon  2020  are  effectively  covered  by  a  Participants 
Guarantee Fund (PGF). The PGF is a mutual benefit instrument set up to cover the risks relating to non-
payment  of  amounts  by  the  beneficiaries  during  the  implementation  of  the  actions  of  FP7  and  Horizon 
2020. All participants of indirect actions receiving a grant from the EU contribute 5% of the total amount 
received to the PGF's capital. 

At  31  December  2020,  pre-financing  amounts  covered  by  the  PGF  totalled  EUR 2.3  billion  (2019: 
EUR 2.1 billion). The EU (represented by the Commission) acts as an executive agent of the participants 
of the PGF, but the fund is owned by the participants. 

At  year-end,  the  PGF  had  total  assets  of  EUR 2.4  billion  (2019:  EUR 2.2  billion).  The  assets  of  the  PGF 
also  include  financial  assets  that  are  managed  by  the  Commission.  As  the  PGF  is  a  separate  entity  the 
assets of the fund are not consolidated in these EU annual accounts. 

2.5.2.  Other advances to Member States 

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

31.12.2020 

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 

68 

 
 
 
 
 
 
Advances to Member States for financial instruments under shared management 

Annual accounts of the European Union 2020 

Under the framework of the European Structural and Investment Funds (ESIF) programmes, it is possible 
to make advance  payments from the EU  budget to Member  States so as to  allow  them  to contribute to 
financial instruments (i.e. loans, equity  investments or guarantees). These financial instruments are set 
up  and  managed  under  the  responsibility  of  the  Member  States,  not  the  Commission.  Nevertheless, 
monies  that  are  unused  by  these  instruments  at  year-end  are  the  property  of  the  EU  (as  with  all  pre-
financing) and are thus treated as an asset on the EU’s balance sheet. 

2014-2020 Period: 

Under cohesion policy, out of EUR 10 518 million paid, it is estimated that EUR 3 452 million was unused 
at  31  December  2020.  This  includes  the  contribution  of  the  Member  States  to  the  SME  Initiative,  an 
instrument aimed at stimulating additional lending by the banking sector to SMEs (EUR 1 238 million paid 
excluding amounts still in pre-financing, out of which EUR 349 million is estimated as unused). 

For rural development, EUR 66 million remained unused at year-end. 

2007-2013 Period:  

All amounts related to cohesion policy are considered to have been either implemented or re-allocated to 
other  measures,  therefore  no  assets  remain  on  the  balance  sheet  at  31  December  2020.  It  should  be 
noted that the actual implementation by the various instruments will be reviewed as part of the closure 
process of the programmes in the coming years. 

Aid Schemes 

Similar  to  the  above,  reimbursed  amounts  corresponding  to  advances  paid  by  the  Member  States  for 
various aid schemes (state aid, market measures of EAGF or investment measures of EAFRD) that were 
not used at year-end are recorded as assets (advances) on the EU's balance sheet. The Commission has 
estimated  the  value  of  these  advances  based  on  information  provided  by  the  Member  States;  the 
resulting amounts are included under the Aid Schemes sub-heading above. 

2014-2020 Period: 

The  unused  amounts  at  year-end  were  estimated  at  EUR  1  887  million  for  cohesion  policy  and  for 
agriculture and rural development at EUR 1 663 million. 

2007-2013 Period: 

It is estimated that EUR 83 million paid in the context of rural development remains unused at the end of 
2020. 

69 

 
Annual accounts of the European Union 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 

44 128 
1 685 
45 813 

26 915 
1 766 
28 681 
74 493 

2 422 
1 185 
3 607 

19 328 
1 038 
20 367 
23 974 

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 

2.6.1.5 

TOR A accounts 
TOR separate accounts 
Own resources to be received 
Impairment 
Other 
Own resources 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 

70 

2 237 
40 629 
1 261 
 1 
44 128 

7 213 
6 827 
11 295 
 787 

 792 

26 915 

71 043 

2 422 
– 
– 
– 
2 422 

6 180 
– 
11 301 
1 788 

 59 

19 328 

21 750 

31.12.2020 
5 297 
1 460 
2 188 
 (892) 
– 
8 053 
1 378 

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

 720 

 (837) 
1 260 
 53 
 35 
 49 
9 450 
2 237 
7 213 

 879 

 (822) 
1 779 
 443 
 44 
 191 
8 602 
2 422 
6 180 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

The largest amount included under non-current relates to amounts due from Member States, specifically 
EUR  2.1  billion  of the  United  Kingdom  (UK)  infringement  case  (explained below).  Also  included  as  non-
current,  as  in  previous  years,  are  amounts  relating  to  non-executed  conformity  clearance  decisions  for 
the European Agricultural Guarantee Fund (EAGF) as well as for the European Agricultural Fund for Rural 
Development  (EAFRD).  The  amounts  related  to  these  decisions  are  being  recovered  in  annual 
instalments. 

The increase in current amounts due from Member States is mostly due the own resources to be received 
linked to amending budgets in 2020 – see below. 

Own resources recoverables 

'A  accounts'  refers  to  the  monthly  statements  where  the  Member  States  communicate  the  established 
Traditional  Own  Resources  (TOR)  entitlements  to  the  Commission,  not  yet  recovered.  TOR  are  mainly 
customs duties collected by Member States on behalf of the Commission. 

The ‘A accounts’ have tended to have a level of approximately EUR 3 billion at year-end, however, in both 
2020  and  2019  the  balance  includes  additional  TOR  amounts  related  to  the  UK  infringement  case 
(explained  below)  and  other  TOR  inspection  reports.  As  late  payment  interest  of  EUR 1.7  billion  is 
applicable  (2019:  EUR 1.2  billion),  those  amounts  are  therefore  also  reported  in  these  annual  accounts 
(see notes 2.6.2 and 3.8). 

Concerning  the  infringement  case,  on  8  March  2018,  the  Commission  sent  a  letter  of  formal  notice 
(Infringement No 2018/2008) to the UK because it failed to make the correct amount of traditional own 
resources  available  to  the  EU  budget,  as  required  by  EU  law.  As  the  UK  did  not  provide  a  satisfactory 
reply, neither to the letter of formal notice nor to the reasoned opinion sent on 24 September  2018, the 
Commission confirmed on 6  March  2019  its decision  to refer the infringement to the Court of Justice of 
the EU and lodged its application on 7 March 2019. The case originated in a 2017 OLAF report, that found 
that importers in the UK evaded a large amount of  customs  duties  by  using fictitious and  false invoices 
and incorrect customs value declarations at importation. Based on a methodology developed by OLAF and 
the  JRC  and  on  the  information  available,  the  Commission  estimates  that  the  infringement  of  EU 
legislation  by  the  UK  resulted,  during  the  period  November  2011  to  October  2017,  in  losses  to  the  EU 
budget amounting to  EUR  2.1 billion (net,  i.e.  after  deducting the collection costs to be retained by the 
UK from the gross amount of EUR 2.7 billion). The UK does not agree with the methodology used by the 
Commission to estimate the above losses. On 8 December 2020 the Court held the oral hearing. The next 
steps in the procedure are the opinion of the Advocate General and the Judgement of the Court of Justice 
for which the dates are not yet known. As the ongoing Court proceedings and the information available to 
date  are  indicative  of  a  long-term  process,  both  the  principal  of  EUR  2.1  billion  and  the  estimated  late 
payment interest of EUR 1.6 billion accrued until end 2020 (compared to EUR 1.1 billion interest accrued 
and recognised until end 2019) have been classified as long-term assets.  

In  addition,  the  Commission  included  in  the  accounts  a  receivable  of  EUR  0.15  billion  for  established 
customs duties and late payment interest which is based on the latest available information.  

‘Separate  accounts’  refers  to  established  entitlements  that  have  not  been  included  in  the  'A  accounts', 
because  they  have  not  been  recovered  by  Member  States  and  no  security  has  been  provided  (or  if 
security  has  been  provided  but  the  amounts  are  contested).  These  entitlements  are  subject  to 
impairment  based  on  information  provided  every  year  by  the  Member  States.  These  amounts  are 
generally at a similar level at each year-end, as seen above. 

‘Own resources to be received’ in 2020 refer to recoverables as a result of the amending budgets Nos 8 
and  9/2020  adopted  on  24  November  2020  and  15  December  2020  respectively.  The  amounts  were 
entered  by  most  Member  States  on  the  first  working  day  of  January  2021.  There  was  no  such  amount 
relating to 2019. 

EAGF and Rural Development recoverables 

This item primarily covers the amounts owed by Member States at 31 December 2019, as declared and 
certified by the Member States as at 15 October 2019. An estimation is made for the recoverables arising 
after this declaration and up to 31 December 2019. The Commission also estimates a write-down for the 
amounts  owed  by  beneficiaries  that  are  unlikely  to  be  recovered.  The  fact  that  such  an  adjustment  is 
made does not mean  that the Commission  is waiving  future recovery of these  amounts. A deduction of 
20% is also included in the adjustment and corresponds to what Member States are allowed to retain to 
cover administrative costs. 

71 

 
2.6.1.2.  UK Withdrawal Agreement 

Annual accounts of the European Union 2020 

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 

The ‘Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the 
European  Union  and  the  European  Atomic  Energy  Community’  (ref.  2019/C  384  I/01)  (the  ‘Withdrawal 
Agreement’ or ‘WA’) signed between the EU and the UK establishes various financial obligations on both 
parties. The above amount represents the net receivable from the UK based on these obligations at the 
year-end. 

In accordance with Article 139 of the WA, the UK's share of the financial obligations arising from the WA 
is  calculated  as  a  ratio  between  the  own  resources  made  available  by the  United  Kingdom  in  the  years 
2014  to  2020  and  the  own  resources  made  available  during  that  period  by  all  Member  States  and  the 
United Kingdom. The adjustments resulting from the netting of the VAT and GNI balances for the years 
2014 to 2019 are also included. The calculated UK share will be subject to the final adjustments foreseen 
in  Article  139  WA  in  2022.  The  UK  share  for  2021  is  used  for  the  calculations  in  points  (a)  and  (c)  of 
Article 136(3), and in Articles 140 to 147. The UK share calculated in accordance with Article 139 WA is 
12.358072326018200%. 

Article 140 – Outstanding Commitments 

The  UK  has  committed  to  pay  the  EU  its  share  of  the  outstanding  budgetary  commitments  at  31 
December 2020, as adjusted by the requirements of Article 140. The adjustments include the deduction 
of  those  commitments  financed  by  assigned  revenue  in  the  Union  budget,  the  deduction  of  those 
commitments  relating  to  programmes  for  which  the  UK  has  an  opt-out  and  the  deduction  of  the 
commitments  in  relation  to  the  non-differentiated  budget  lines  for  which  the  amount  of  payment 
appropriations is carried over automatically and for which the UK already contributed in 2020.  

The  Union’s  budgetary  commitments  originating  from  assigned  revenue  appropriations  comprise  third 
country  contributions  (external  assigned  revenue)  and  the  re-use  of  amounts  initially  paid  by  and 
subsequently  returned  to  the  EU  budget  (internal  assigned  revenue).  The  different  rules  for  the  use  of 
external  and  internal  assigned  revenue  are  stipulated  in  Article  12(4)(c)  and  Article  12(4)(b)  of  the 
Financial Regulation, respectively. 

The  budgetary  commitments  originating  from  external  assigned  revenue  appropriations  are  excluded 
from the outstanding commitments for which the UK is liable. For that category of assigned revenue, the 
payment  appropriations  to  finance  the  corresponding  commitments  remain  available  for  the  duration  of 
the programme to which the revenue is assigned. Therefore, no further financing is due from the UK.  

Furthermore,  the  majority  of  payment  appropriations  for  internal  assigned  revenue  have  already  been 
used  for  financing  voted  budget  commitments.  Therefore,  only  the  payment  appropriations  stemming 
from internal assigned revenue which are still available to finance part of the outstanding commitments 
are also deducted from the UK liability. 

The  biggest  component  of  internal  assigned  revenue  is  the  clearing  mechanism  applied  by  the  ESIF. 
Payment  appropriations  from  internal  assigned  revenue,  to  which  Member  States  and  the  UK  have 
already contributed in the past, are used to pay outstanding budget commitments to optimise the use of 
the budget and hence reduce Member States’ contributions. This leads to a situation where commitments 
made  on  internal  assigned  revenue  need  to  be  funded  by  future  budget  appropriations.  Accordingly, 
these outstanding commitments remain a liability for the EU budget and for the UK, as with other open 
EU budgetary commitments. 

The UK did not participate in the financing of certain programmes and actions in the field of justice and 
home affairs. Accordingly, the outstanding commitments related to the UK opt-out are excluded from the 
overall  amount  due.  The  other  adjustments  include  the  non-automatic  carryovers  of  commitment 
appropriations  from  2020  to  2021  that  will  increase  the  outstanding  budgetary  commitments  for  which 
the UK is liable. The amount of this adjusted RAL at 31 December 2020 was EUR 294.3 billion of which 
the UK share would be EUR 36.4 billion. Further corrections are then made to this amount, corresponding 

72 

 
 
 
 
 
 
Annual accounts of the European Union 2020 

to  the  UK’s  share  of:  the  net  financial  corrections  from  2014-2020  or  previous  programming  periods 
which were cashed in 2021; and TOR relating to 2020 and made available in 2021. The amount owed by 
the UK under Article 140 is thus EUR 36.0 billion. The amount recognised as a receivable is based on the 
official Commission forecast of decommitments of the entire stock of RAL of 31 December 2020, giving a 
total receivable of EUR 35.0 billion (of which EUR 6.8 billion is to be paid in the 12 months following the 
reporting date): 

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 

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 

For more details regarding the outstanding budgetary commitments at 31 December 2020 – which is the 
starting  figure  for  the  calculation  of  the  amounts  owed  by  the  UK  under  Article  140  –  please  see 
Budgetary Implementation Reports and Explanatory Notes, table 4.4.  

Article 142 – Union liabilities at end 2020 

The  UK  has  committed  to  pay  the  EU  its  share  of  Union  liabilities  at  end  2020  with  the  exception  of 
liabilities:  (a)  with  corresponding  assets  and  (b)  relating  to  the  operation  of  the  budget  and  the 
management of own resources (including amounts already covered by the outstanding commitments (see 
Article 140 above)). The main amount here concerns the EU post-employment obligations (pensions and 
sickness  insurance)  existing  at  31  December  2020  where  the  UK’s  share  totals  EUR  14  338  million  at 
year-end (of which EUR 11 million is to be paid in the 12 months following the reporting date): 

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 

For more information regarding the employee benefit liabilities, please see note 2.9. 

73 

 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

Other Articles 

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 

EUR million 
31.12.2020 

 230 
 46 
 275 

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

(1 894) 

 47 

Article 136 – Provisions applicable in relation to own resources 

Article  136  establishes  the  provisions  applicable  after  31  December  2020  in  relation  to  own  resources. 
The UK is entitled to receive its share where the own resources related to the financial years up to and 
including 2020 are to be made  available, corrected  or  subject to  adjustments after 31 December 2020. 
Furthermore,  it  will  receive  its  share  of  adjustments  related  to  the  surplus  of  the  year  2020.  It  is  also 
subject  to  any  adjustments  of  VAT  and  GNI  own  resources  that  relate  to  the  financial  years  up  to  and 
including 2020. These  VAT and  GNI  adjustments will  be calculated yearly until 31 December 2028. The 
calculated updates of the UK correction of 2017-2019 are also be taken into account. 

The  UK  is  required  to  pay  the  traditional  own  resources  collected  by  them  after  28  February  2021,  but 
related to the year 2020 and earlier. Their share  of  the total made available TOR by the EU  27 and by 
them is then deducted from this amount. The separate account for traditional own resources shall be fully 
liquidated at 31 December 2025. 

The amount of EUR 230 million below is to be paid by the UK during 2021. 

Surplus 
UK correction 
Opt-out 
VAT and GNI adjustments (related to years 2020 and before) 
UK net traditional own resources after 28 February 2021 

Total 

Article 141 – Fines 

EUR million 

 (219) 
 211 
N/A 
 214 
 23 

 230 

The UK is entitled to its share of fines decided before 31 December 2020 and also those decided upon by 
the  Union  after  31  December  2020  in  a  procedure  referred  to  in  Article  92(1)  when  these  become 
definitive. The amount of UK relevant fines outstanding at 31 December 2020 is EUR 14.3 billion. In total, 
the  UK  would  be  entitled  to  EUR  1.8  billion  (of  which  EUR  20  million  is  to  be  paid  in  the  12  months 
following the reporting date). 

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Annual accounts of the European Union 2020 

Articles 143– Contingent financial liabilities: loans for financial assistance, EFSI, EFSD & ELM 

Under this article the UK shall be liable to fund its share of the contingent liabilities of the EU in relation 
to its borrowing, lending and guarantee activities should these crystallise and should they not be covered 
by existing guarantee funds – see note 4.1 for the related contingent liabilities. The EU will refund to the 
UK amounts which the UK has already contributed to guarantee funds and which are no longer needed. 
The UK also has a right to the reflows from operations for which it shares the liability. At 31 December 
2020  the  amount  to  be  paid  to  the  UK,  all  within  the  next  12  months,  is  EUR  93  million.  This  relates 
solely to EFSD where there have been no approved operations pre-withdrawal, thus no obligations for the 
UK to cover.  

Articles 144 – Financial instruments 

Under  this  article,  the  EU  has  committed  to  refund  to  the  UK  its  share  of  the  reflows  stemming  from 
financial operations approved by the withdrawal date, as well as its share of the disbursements made to 
financial operations approved after the withdrawal date. At 31 December 2020 the amount to be paid to 
the UK, all within the next 12 months, is EUR 46 million. 

Article 145 – European Coal and Steel Community in Liquidation (ECSC i.L.) 

The UK is entitled to its share of the net assets of ECSC in Liquidation at 31 December 2020, to be paid 
back in five instalments on 30 June each year, starting in 2021. The net assets of the ECSC in Liquidation 
at 31 December 2020 amounted to EUR 1.5 billion of which the UK share is EUR 183 million (with EUR 37 
million to be paid back in 2021).  

Article 146 – Investment in the European Investment Fund (EIF) 

The  UK  is  entitled  to  its  share  of  the  EU’s  investment  in  the  paid-in  share  capital  of  the  EIF  at  31 
December  2020,  to  be  paid  back  in  five  instalments  on  30  June  each  year,  starting  in  2021.  The  EU’s 
investment in the EIF paid-in share capital at 31 December 2020 was EUR 267 million (see note  2.3) of 
which the UK share is EUR 33 million (with EUR 7 million to be paid back in 2021).  

Article 147 – Legal cases 

The  UK  has  committed  to  contribute  its  share  of  EU  payments  arising  from  legal  cases  concerning  the 
financial  interests  of  the  Union  that  become  due,  provided  that the  facts  forming  the  subject  matter of 
those cases occurred no later than 31 December 2020. Taking into account the provisions and accruals at 
year-end,  as  well  as  actual  payments  made  for legal  cases  in  2021, the  estimated  amount  that the  UK 
will have to pay is EUR 46 million (EUR 21 million of which has been invoiced to the UK for payment in 
2021). 

2.6.1.3.  Recoverables from competition fines 

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

Current 

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

11 295 

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

11 301 

The provisional payments mainly relate to cash receipts from companies that have nevertheless initiated 
an appeal or still have the option to appeal against the fine decisions at EU courts. A contingent liability is 
disclosed  for  the  possibility  of  having  to  pay  back  these  amounts  to  the  fined  companies  –  see  note 
4.1.4. 

Fined companies who have launched or are planning to launch an appeal have an option to either make 
provisional payments or to provide bank  guarantees to the Commission. For EUR 11 004  million  (2019: 
EUR 11 133 million) of fines not paid at year-end, the Commission has accepted financial guarantees.  

75 

 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

The amounts written down due to impairment reflect the Commission's case-by-case assessment of fines 
amounts not cashed or not covered with a guarantee, which the Commission expects not to recover. 

The  total  recoverables  from  competition  fines  have  remained  relatively  unchanged  from  2019  to  2020. 
This is due to the fact that the newly issued recoverables in 2020 are largely offset by fines which  were 
definitively cashed in 2020. 

2.6.1.4.  Accrued income and deferred charges 

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

31.12.2020 
1 755 
 293 
2 048 
1 261 
 787 

EUR million 
31.12.2019 
1 502 
 286 
1 788 
– 
1 788 

Accrued income includes EUR 1.7 billion (2019: EUR 1.4 billion) the Commission expects to recover in the 
area of cohesion as a result of the examination and acceptance of the annual accounts submitted by the 
Member States (based on the procedure introduced for the programming period 2014-2020). The biggest 
part  of  this  amount  (EUR  1.3  billion)  is  expected  to  be  recovered  at  the  closure  of  the  underlying 
programmes  only  (as  a  consequence  of  the  Coronavirus  Response  Investment  Initiative  measures)  and 
therefore classified as non-current.  

2.6.1.5.  Other recoverables 

The  total  amount  of  other  recoverables  includes  a  recoverable  of  EUR  744  million  resulting  from  the 
transfer of the unspent NER300 funds to the Innovation Fund not yet recovered from the EIB at the end 
of 2020 – see note 3.7.  

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 
Late payment interest 
Other 

Total 

31.12.2020 

EUR million 
31.12.2019 

1 641 
 44 
1 685 

 324 
 (188) 
 345 
1 085 
200 

1 766 

3 450 

1 137 
 48 
1 185 

 269 
 (153) 
 238 
528 
 157 

1 038 

2 223 

The non-current late payment interest concerns the infringement case mentioned in note 2.6.1.1. 

The  Other  current  receivables  relate  mainly  to  late  payment  interest.  The  increase  from  2019  to  2020 
results  from  additional  accrued  income  stemming  from  TOR  inspection  reports  and  an  increase  due  to 
accrued interest on guarantees provided by fined companies. 

76 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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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 other institutions, agencies and bodies 
Cash relating to trust funds 
Total 

2.8.1.  Bank accounts for budget implementation 

31.12.2020 
 59 
 21 
 80 

EUR million 
31.12.2019 
 47 
 21 
 68 

Note 

2.8.1 
2.8.2 
2.8.3 

EUR million 
31.12.2020  31.12.2019 
15 519 
 91 
 7 
 0 
15 617 
1 567 
1 258 
1 208 
 97 
19 745 

11 342 
 80 
 8 
 0 
11 430 
2 446 
1 458 
1 362 
 46 
16 742 

This  heading  covers the  funds  which  the  Commission  keeps  in its bank  accounts  in  each  Member  State 
and  EFTA  country  (treasury  or  central  bank),  as  well  as  in  commercial  bank  current  accounts,  imprest 
accounts  and  petty  cash  accounts.  The  treasury  balance  at  the  end  of  2020  is  driven  by  the  following 
main elements: 

  An  amount  of  EUR 9.4  billion  of  payments  not  yet  implemented  at  year  end,  of  which  EUR  7.9 
billion relates to assigned revenues. The assigned revenues include EUR 1.3 billion of cash raised 
on  the  sale  of  emission  allowances  and  recovered  from  the  EIB  after  being  assigned  by  the 
Member States to the Innovation Fund – see note 3.7.  

  An  amount  of  EUR  1.6  billion  belonging  to  agencies  and  joint  undertakings  treasury  –  as  the 
Commission  manages  the  treasury  on  behalf  of  these  entities,  these  amounts  are  shown  under 
this sub-heading. 

2.8.2.  Cash belonging to financial instruments 

Amounts shown under this heading primarily concern cash equivalents managed by fiduciaries, on behalf 
of the Commission, for  the purpose of implementing  particular financial instrument programmes funded 
by  the  EU  budget  and  cash  and  cash  equivalents  held  in  the  guarantee  funds  relating  to  budgetary 
guarantees – see note 2.4.1. The cash belonging to financial instruments and guarantee funds can only 
be  used  by  the  programmes  concerned.  The  increase  of  the  balance  is  mainly  due  to  (i)  further 
provisioning of the  EFSI and EFSD  Guarantee Funds that was not yet invested in bonds at end of 2020 
and  (ii)  payments  to  the  EU  financial  instruments,  in  particular  under  COSME  and  Horizon  2020 
programmes, which have not yet been used for guarantee calls nor for investment in equity. 

77 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

2.8.3.  Cash relating to fines 

This is mainly cash received in connection with fines issued by the Commission for which the case is still 
open.  These  amounts  are  kept  in  specific  deposit  accounts  that  are  not  used  for  any  other  activities. 
Where an appeal has been lodged or when it is unknown if an appeal will be made by the other party, the 
underlying amount is shown as contingent liability in note 4.1.4. Since 2010, all subsequent provisionally 
cashed  fines  are  managed  by  the  Commission  in  the  BUFI  fund  and  invested  in  financial  instruments 
categorised as available for sale (see note 2.4.1). The increase of cash relating to fines at 2020 year-end 
is  due  to  a  higher  cash  balance  held  in  BUFI  as  compared  to  the  2019  year-end  as  well  as  definitively 
received fines to be transferred to the budget. 

78 

 
 
Annual accounts of the European Union 2020 

LIABILITIES 

2.9.  PENSION AND OTHER EMPLOYEE BENEFITS 

2.9.1.  Net employee benefit scheme liability 

Pension 
Scheme of 
European 
Officials 
100 741 
N/A 
100 741 

Other 
retirement 
benefit 
schemes 
2 438 
 (94) 
2 344 

Joint Sickness 
Insurance 
Scheme 

31.12.2020  
Total 

EUR million 
31.12.2019  
Total 

13 289 
 (354) 
12 935 

116 468 
 (448) 
116 020 

98 062 
 (403) 
97 659 

Defined Benefit Obligation 
Plan assets 
Net liability 

The increase in the total employee benefits liability is primarily driven by the increase in the net liability 
of the Pension Scheme of European Officials (PSEO), the largest scheme in place. This PSEO liability has 
increased mainly because of the actuarial loss from changes in financial assumptions caused by a sharp 
decrease in the nominal discount rate. Furthermore, as the nominal discount rate is adjusted for inflation 
to obtain the real discount rate, in 2020 the real discount rate was negative for the second year running 
– meaning that any given amount in the future is worth more today than when it actually occurs in the 
future: this significantly increases the size of the liability at year-end. The lower discount rate has had a 
similar effect on the other schemes also.  

Additionally,  the  rights  accrued  during  the  year  due  to  service  are  higher  than  the  benefits  paid  out 
during  the  year.  There  is  also  an  increase  due  to  the  annual  interest  cost  (unwinding  of  the  liability 
discounting) as well as actuarial losses from experience. 

Pension Scheme of European Officials 

This defined benefit obligation  represents  the present  value of expected future payments that the EU is 
required to make, so as to settle the pension obligations resulting from employee service in the current 
and  prior  periods.  The  scheme  is  ongoing,  and  as  such,  all  payments  required  to  be  made  from  the 
scheme on an annual basis are included in the EU budget each year. 

In  accordance  with  Article  83  of  the  Staff  Regulations,  the  payment  of  the  benefits  provided  for  in  the 
staff pension scheme constitutes a charge to the EU's budget. The scheme is notionally funded, and the 
Member States guarantee the payment of these benefits collectively. A compulsory pension contribution 
is deducted from the basic salaries of active members, currently 10.1%. These contributions are treated 
as budget revenue of the year and contribute to the funding of EU expenditure in general, see  also note 
3.7. 

The  liabilities  of  the  pension  scheme  were  assessed  on  the  basis  of  the  number  of  PSEO  staff  (active 
staff,  retirees,  former  active  staff  now  on  invalidity  and  dependants  of  deceased  staff)  at  31 December 
2020 and on the rules of  the Staff Regulations applicable at this date. This valuation was carried out in 
accordance with the methodology of IPSAS 39 (and therefore also EU accounting rule 12). 

Other retirement benefit schemes 

This refers to the liability relating to the pension obligations towards Members and former Members of the 
Commission,  the  Court  of  Justice  (and  General  Court)  and  the  Court  of  Auditors,  the  Council,  the 
Ombudsman,  the  European  Data  Protection  Supervisor,  and  the  European  Union  Civil  Service  Tribunal. 
Also  included  under  this  heading  is  a  liability  relating  to  the  pensions  of  Members  of  the  European 
Parliament. 

Joint Sickness Insurance Scheme 

In addition to the above retirement benefit schemes, a valuation is made for the estimated liability that 
the EU  has regarding the Joint Sickness Insurance  Scheme (JSIS) in  relation  to healthcare costs, which 
must  be  paid  during  post-activity  periods  (net  of  their  contributions).  As  stated  in  note  1.5.10,  the 

79 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

calculation of this liability takes account of the full active service period, ensuring that both the pension 
and the sickness insurance schemes of the staff’s post-employment plan are accounted for consistently. 
Taking into account the obligation to faithfully present the economic substance of the underlying situation 
as  required  by  both  EAR  and  IPSAS,  we  have  not  interpreted  IPSAS  39  in  a  stricter  sense  when 
attributing  the  benefits  to  the  periods  of  service.  If  one  were  to  accrue  the  service  cost  for  the  JSIS 
scheme  fully  over  10  years  for  all  officials,  as  opposed  to the  period  of  active  service  of  the employee,  
the  impact  of  such  an  approach  on  the  defined  benefit  obligation  at  year-end  would  be  an  increase  of   
EUR 4.6 billion.  However,  as  already  indicated,  this  stricter  approach  would  not  be  compatible  with  the 
qualitative  characteristic  of  faithful  representation,  and  thus  would  not  be  deemed  to  provide  reliable 
information  in  accordance  with  EAR  1  and  the  IPSAS  Conceptual  Framework.  This  estimate  is  highly 
sensitive  to  the  evolution of  current  staff  administrative  status  (in  particular,  the  number  of  fixed-term 
contract members assumed to become officials in the future). 

2.9.2.  Movement in present value of employee benefits defined benefit obligation 

The present value of the defined benefit obligation is the discounted expected future payments required 
to settle the obligation resulting from employee service in the current and prior periods. 

An analysis of the current year movement in the defined benefit obligation is presented below: 

Present value as at 31.12.2019 
Recognised in statement of 
financial performance 
Current Service Cost 
Interest cost 
Past Service Cost 
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 
2 149 

Joint Sickness 
Insurance 
Scheme 
12 071 

EUR million 
Total 

98 062 

3 441 
 919 
– 

2 348 

– 

11 896 

 97 
 17 
– 

 (7) 

 (3) 

 259 

 348 
 145 
– 

3 886 
1 081 
– 

 (141) 

2 200 

– 

 (3) 

 964 

13 119 

(1 706) 
100 741 

 (75) 
2 438 

 (97) 
13 289 

(1 878) 
116 468 

Current  service  cost  is  the  increase  in  the  present  value  of  the  defined  benefit  obligation  arising  from 
current members' service in the current year. 

Interest cost refers to the increase during the period in the present value of the defined benefit obligation 
because the benefits are one period closer to settlement.  

Actuarial gains and losses from experience refer to the effects of differences between what was expected 
according to the assumptions made last year for 2020 and what really occurred in 2020. 

Actuarial gains and losses from actuarial assumptions (demographic variables such as employee turnover 
and mortality and financial variables such as  discount  rates and  expected  salary increases) arise  where 
these assumptions are updated in order to reflect changes in underlying conditions.  

Benefits (for example, pensions or  medical cost reimbursements) are  paid during the year according to 
the rules of the scheme. These benefits paid lead to a decrease in the defined benefit obligation. 

80 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.9.3. 

Plan assets 

Annual accounts of the European Union 2020 

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

Other retirement 
benefit schemes 
 94 
 0 
 94 

Joint Sickness 
Insurance Scheme 
 309 
 45 
 354 

EUR million 
Total 

 403 
 45 
 448 

2.9.4.  Actuarial assumptions – employee benefits 

The principal actuarial assumptions used  in the valuation of the two main employee benefit schemes of 
the EU are shown below: 

Pension Scheme of 
European Officials 

Joint Sickness Insurance 
Scheme 

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 

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 

Mortality rates for 2019 and 2020 are based on the EU Civil Servants Life Table – EULT 2018. 

The nominal discount rate is determined as the value of the Euro zero-coupon yield (with a maturity of 23 
years as of December 2020  for the PSEO, and 27  years for  the Joint  Sickness Insurance  Scheme). The 
inflation  rate  used  is  the  expected  inflation  rate  over  the  equivalent  period.  It  must  be  determined 
empirically,  based  on  prospective  values  as  expressed  by  index-linked  bonds  on  the  European  financial 
markets. The real discount rate is calculated from the nominal discount rate and the expected long-term 
inflation rate. 

A  decrease  in  the  real  discount  rate,  i.e.  the  difference  between  the  nominal  discount  rate  and  the 
expected  inflation  rate  was  particularly  steep  in  2019  and  continued  in  2020.  The  decrease  in  the  real 
discount  rate  is  mainly  due  to  the  decline  in  the  nominal  discount  rate,  which  is  in  line  with  the 
continuous trend observed globally on the financial markets. The decline in the nominal discount rate was 
not  sufficiently  counterbalanced  by  changes  in  the  inflation  rate  assumption.  This  was  translated  into  a 
significant decrease in the real discount rate, thus continuing the negative trend and contributing to the 
significant actuarial loss from financial assumptions. 

As in the case of the PSEO, the increase in the JSIS liability was mainly driven by the continued decrease 
in  the  real  discount  rate,  though  the  effect  was  partly  counterbalanced  by  the  update  of  the  assumed 
annual  increase  of  the  medical  costs,  which  is  a  key  assumption  in  the  context  of  medical  schemes.  In 
the 2020 exercise, the projected trend of medical costs has been derived on a much longer series of data 
covering  the  periods  2005  to  2019,  thus  ensuring  greater  consistency  with  the  duration  of  the  scheme 
and  a  more  accurate  estimation  of  the  expected  future  trend  of  medical  costs.  Due  to  the  exceptional 
circumstances  of  the  COVID-19  pandemic,  and  to  avoid  the  risk  of  bias  in  the  estimate,  the  year  2020 
has been excluded from the time series. 

81 

 
 
 
 
 
 
 
 
 
 
2.9.5.  Sensitivity analyses  

Annual accounts of the European Union 2020 

The sensitivity analysis is based on simulations, which change, everything else being equal, the value of 
the concerned assumptions. 

Pension Scheme of European Officials sensitivity 

A ten basis point (0.1%) change in the assumed discount rate would have the following effects: 

Defined benefit obligation 

Increase 0.1%  Decrease 0.1% 
2 319 

(2 247) 

Increase 0.1%  Decrease 0.1% 
1 854 

(1 797) 

2020 

EUR million 

2019 

A ten basis point (0.1%) change in expected salary increases would have the following effects: 

Defined benefit obligation 

Increase 0.1%  Decrease 0.1% 
(2 143) 

2 206 

Increase 0.1%  Decrease 0.1% 
(1 724) 

1 774 

2020 

EUR million 

2019 

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

2020 

2019 

EUR million 

Defined benefit obligation 

  One year increase  One year decrease  One year increase  One year decrease 
 771 

(1 104) 

 (620) 

1 417 

Joint Sickness Insurance Scheme sensitivity 

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

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

2020 

EUR million 

2019 

Increase 0.1%  Decrease 0.1% 

Increase 0.1%  Decrease 0.1% 

 15 

 (14) 

 8 

 (8) 

 397 

 (385) 

 352 

 (341) 

A ten basis point (0.1%) change in the assumed discount rate would have the following effects: 

Defined benefit obligation 

Increase 0.1%  Decrease 0.1% 
 361 

 (348) 

Increase 0.1%  Decrease 0.1% 
 322 

 (311) 

2020 

EUR million 

2019 

A ten basis point (0.1%) change in expected salary increases 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 assumed retirement age would have the following effects: 

2020 

2019 

EUR million 

Defined benefit obligation 

  One year increase  One year decrease  One year increase  One year decrease 
 383 

 (401) 

 (363) 

 421 

82 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 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 
dismantlement 
Financial 
Other 
Total 
Non-current 

 441 
 103 

2 132 

1 938 
 208 
4 823 
3 707 

 168 
 17 

– 

 812 
 59 
1 056 
 743 

 (4) 
 (3) 

– 

 (1) 
 (13) 
 (20) 
 (4) 

 (435) 
 (77) 

 (30) 

 (225) 
 (11) 
 (778) 
 (505) 

– 
– 

– 

– 
– 
– 
 (393) 

– 
 (9) 

 325 

 (2) 
 11 
 324 
 330 

 170 
 31 

2 426 

2 523 
 254 
5 405 
3 878 

Current 

1 116 

 313 

 (16) 

 (274) 

 393 

 (6) 

1 527 

Provisions are reliably estimated amounts, arising from past events, that will probably have to be paid by 
the EU budget in the future. 

Legal cases 

This is the estimate of amounts that will probably have to be paid out after the year-end in relation to a 
number of on-going legal cases. The Agriculture amounts relate to legal actions of Member States against 
conformity clearance decisions for the EAGF. The decrease here is due to two settled cases in 2020. 

Nuclear site dismantlement 

As  of  2017  the  basis  for  the  provision  was  updated  as  per  the  ‘JRC  Decommissioning  &  Waste 
Management Programme Strategy (D&WMP)  – Updated in 2017’. The review of the strategy, along with 
budget  and  staff  needs,  was  conducted  together  with  the  independent  D&WMP  Expert  Group.  It 
represents the best available estimate of the budget and staff needed to complete the decommissioning 
of the JRC sites of Ispra, Geel, Karlsruhe and Petten. 

In accordance with the EU accounting rules, this provision is indexed for inflation and then discounted to 
its net present value (using the Euro swap curve). At 31 December 2020, this resulted in a provision of 
EUR 2 426 million, split between amounts expected to be used in 2021 (EUR 33 million) and afterwards 
(EUR 2 393 million). The increase compared to 2019 is mainly the result of the decreasing discount rate 
applied to the estimated future costs. 

It  must  be  noted  that  major  uncertainties,  inherent  to  the  long  term  planning  of  nuclear 
decommissioning,  could  affect  this  estimate,  which  could  significantly  increase  in  the  future.  The  main 
sources of uncertainty are related to the end state of the decommissioned site, nuclear materials, waste 
management  and  disposal  aspects,  incomplete  or  lacking  definition  of  national  regulatory  frames, 
complicated  and  time-consuming  licensing  processes  and  future  developments  of  the  decommissioning 
industrial market. 

Financial provisions 

These concern mainly provisions, which represent the estimated losses that will be incurred in relation to 
the  guarantees  given  under  different  financial  instruments,  where  entrusted  entities  are  empowered  to 
issue guarantees in their own name but on behalf of, and at the risk of, the EU. The financial risk of the 
EU  linked  to  the  guarantees  is  capped  and  financial  assets  are  gradually  provisioned  to  cover  for  the 
future guarantee calls. This heading also includes provisions for outstanding loans to Syria issued by the 
EIB  under  its  external  lending  mandate  and  thus  guaranteed  by  the  EU  via  the  Guarantee  Fund  for 
external actions. Non-current financial provisions are discounted to their net present value. 

The  increase  of  the  financial  provisions  relates  to  the  increase  of  the  volume  of  guaranteed  operations 
under H2020, COSME, CCS LGF and EaSI, including for the part covered by the EFSI EU Guarantee under 
the EFSI SMEW debt portfolio – see note 4.1.1. 

83 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

2.11.  FINANCIAL LIABILITIES 

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 

Total 

2.11.1.  Financial liabilities at amortised cost  

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

2.11.1.1.  Borrowings for financial assistance 

Note 

2.11.1 
2.11.2 

2.11.1 
2.11.2 
2.11.3 

EUR million 
31.12.2020  31.12.2019 

84 395 
 4 
84 399 

10 559 
 0 
 90 
10 649 
95 048 

53 062 
 9 
53 071 

1 423 
 4 
 20 
1 446 
54 517 

Note 
2.11.1.1 
2.11.1.2 

EUR million 
31.12.2020  31.12.2019 
52 564 
1 921 
54 485 
53 062 
1 423 

93 192 
1 761 
94 954 
84 395 
10 559 

Total at 31.12.2019 
New loans 
Repayments 
Exchange differences 
Changes in carrying amount 

Total at 31.12.2020 
Non-current 
Current 

EFSM 

SURE 

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

– 
39 500 
– 
– 
 3 
39 503 
39 500 
 3 

BOP 

 201 
– 
– 
– 
 0 
 201 
 200 
 1 

MFA 

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

Euratom 

EUR million 
Total 

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

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

Borrowings  mainly  include  debts  evidenced  by  certificates  amounting  to  EUR  92  415  million  (2019: 
EUR 52 433 million). The changes in carrying amount correspond to the change in accrued interests. 

The repayment of the above borrowings are  ultimately guaranteed by the EU  budget  –  see  note  4.1.2, 
and by extension by each Member State. 

84 

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

Annual accounts of the European Union 2020 

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% 

0.00% - 0.30% 

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

31.12.2019 
0.50% - 3.75% 

– 

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

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 

31.12.2020 

EUR million 
31.12.2019 

1 130 
 346 
 136 
1 612 

 101 
 38 
 8 
 2 
 149 
1 761 

Future amounts to be paid 

< 1 year 

1-5 years 

> 5 years 

1 244 
 385 
 144 
1 772 

 97 
 36 
– 
 17 
 149 
1 921 

EUR million 

Total 
Liability 
1 218 
 13 
1 231 
 345 

1 576 

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 

 96 
 5 
 101 
 50 

 151 

 150 

 457 
 8 
 465 
 170 

 636 

 644 

 665 
– 
 665 
 124 

 790 

 946 

1 741 

The lease and building related amounts above will have to be funded by future budgets. 

85 

 
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 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 

Guarantees on equity portfolios 

 215 
 14 
 229 
 229 
 0 

 1 
 4 
 4 
 4 
 0 

Notional 
amount  
 752 
 13 
 765 
 148 
 617 

Fair value 

 10 
 2 
 12 
 9 
 4 

Guarantees given on equity portfolios are classified as financial liabilities at fair value through surplus or 
deficit, since they do not meet the definition of a financial guarantee liability  – see note 1.5.12. The EU 
financial liability is measured based on the value of the underlying investments. 

Foreign exchange option 

As at 31 December 2020 the EU  holds a derivative financial instrument (Foreign exchange option  –  put 
spread type of option) in which it covers the devaluation of the foreign exchange currency (UHA) related 
to  loans  given  by  financial  institutions  to  SMEs  in  Ukraine  so  as  to  enhance  the  access  to  financing,  as 
well  as  the  attractiveness  of  the  loan  conditions  in  Ukraine.  Under  the  terms  of  the  contract,  the  EU 
provides its partners with an  option to call, for each eligible loan, up  to a maximum  of 30%, for an EU 
contribution in the case of devaluation of the ratio UHA/EUR. 

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 

2.11.3.  Financial guarantee liabilities 

31.12.2020 
– 
 4 

 1 

 4 

EUR million 
31.12.2019 
– 
 2 

 10 

 12 

The  EFSI  guarantee  on  the  debt  portfolio  disbursed  by  the  EIB  under  the  EFSI  Innovation  and 
Infrastructure window (IIW), as well as the External Lending Mandate (ELM) guarantee for the EIB loans 
disbursed under  the EIB Resilience  Initiative (ERI)  are classified as a financial guarantee liability. At 31 
December 2020, the EFSI financial guarantee liability totals EUR zero (2019: EUR zero), as the revenues 
to  be  received  under  this  guarantee  exceed  expected  losses,  while  the  ELM  ERI  financial  guarantee 
liability amounts to EUR 90 million (2019: EUR 20 million) – see note 4.1.1. 

86 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

2.12.  PAYABLES 

Cost claims and invoices 
received from: 
Member States 
EAFRD & other rural 
development instruments 
ERDF & CF 

ESF 

Other 

Private and public entities 
Total cost claims and 
invoices received 
EAGF 

Sundry payables 

Other 

Total 

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 

 792 

1 485 

 (370) 

 (90) 

 (182) 

 17 

9 954 

3 109 

 701 

1 302 

 21 

8 068 

2 882 

 852 

1 562 

 (0) 

(2 437) 

 (558) 

 (45) 

 (180) 

 21 

5 631 

2 325 

 807 

1 381 

18 424 

(3 341) 

15 083 

13 384 

(3 220) 

10 165 

16 160 

 784 

 381 

N/A 

N/A 

N/A 

16 160 

16 255 

 784 

 381 

 539 

 283 

N/A 

N/A 

N/A 

16 255 

 539 

 283 

35 748 

(3 341) 

32 408 

30 462 

(3 220) 

27 241 

Payables  include  invoices  and  cost  claims  received  but  not  yet  paid  at  year-end.  They  are  initially 
recognised  at  the  time  of  the  reception  of  the  invoices  /  cost  claims  for  the  requested  amounts.  The 
payables are subsequently  adjusted to  reflect only  the amounts accepted following review of costs, and 
the  amounts  estimated  to  be  eligible.  The  amounts  estimated  to  be  non-eligible  are  included  in  the 
column ‘Adjustments’; the largest amounts concern the structural actions. 

In  the  2014-2020  programming  period,  the  Common  Provisions  Regulation 2013/1303  (CPR)  applicable 
to the Structural Funds (ERDF and ESF), the Cohesion Fund and to the European Maritime and Fisheries 
Fund (EMFF) foresees that the EU budget is protected by means of a systematic retention of 10% of the 
interim payments made. By February following the end of the CPR accounting year (1 July - 30 June), the 
control cycle is complete, both through management verifications by the managing authorities and audits 
by the audit authorities. The Commission examines the assurance documents and the accounts provided 
by  the  relevant  authorities  in  the  Member  States.  The  payment  /  recovery of  the  final  balance  is  made 
only after this assessment is finalised and the accounts are accepted. The amount retained according to 
this provision at end 2020 totalled EUR 7.8 billion. A part of this amount (EUR 1.1 billion) is estimated as 
being non-eligible on the basis of the information provided by the Member States in their accounts and is 
also  included  in  the  column  ‘Adjustments’.  The  final  component  of  the  adjustments  to  the  payables  is 
represented by the amounts corresponding to other advances to Member States (see note 2.5.2) still to 
be paid at year-end (EUR 1.3 billion). 

The  increase  in  amounts  payable  concerning  cohesion  policy  (ERDF,  CF,  ESF)  is  mainly  due  to the  cost 
claims received towards the end of 2020 (EUR 5.9 billion) which had not yet been paid due to a lack of 
credits. In general, the higher level of cost claims reflects the progress of implementation in this area.  

Requests for pre-financing 

In addition to the above amounts, at the end of 2020, EUR 1.4 billion of requests for pre-financing have 
been received and were not yet paid at year-end. According to the EU accounting rules, these amounts 
are not booked as payables. 

87 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 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 

31.12.2020 
64 383 
 128 
 74 
64 584 

EUR million 
31.12.2019 
66 860 
 254 
 116 
67 230 

31.12.2020 
24 599 
18 622 
8 766 
3 009 
9 386 
64 383 

EUR million 
31.12.2019 
28 193 
18 583 
9 525 
3 016 
7 542 
66 860 

Accrued  charges  refer  to  recognised  expenses  for  which  the  Union  has  still  to  receive  cost  claims.  For 
cohesion  policy,  the  decrease  for  ERDF  &  CF  accrued  charges  relates  mainly  to  the  winding-up  of  the 
2007-2013  period  (as  the  final  cost  claims  are  being  received),  while  the  level  remains  stable  for  the 
2014-2020 period. The evolution of EAGF amounts is explained in more detail in note 3.10.  

88 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

Note 
2.14.1 
2.14.2 
2.14.3 

31.12.2020 
 496 
3 043 
1 523 
5 062 

EUR million 
31.12.2019 
 391 
2 870 
1 776 
5 037 

NET ASSETS 

2.14.  RESERVES 

Fair value reserve 
Guarantee Fund reserve 
Other reserves 
Total 

2.14.1.  Fair value reserve 

In  accordance  with  the  EU  accounting  rules,  the  adjustment  to  fair  value  of  available  for  sale  financial 
assets is accounted for through the fair value reserve. 

Movements of the fair value reserve during the period 

Included in fair value reserve 
Included in the statement of financial performance 
Total 

31.12.2020 
 89 
 16 
 105 

EUR million 
31.12.2019 
 200 
 (40) 
 160 

2.14.2.  Guarantee Fund reserve 

This  reserve  reflects  the  9%  target  amount  of  the  outstanding  amounts  guaranteed  by  the  EU  budget 
under the EIB external lending mandate, that is required to be kept as assets in the Guarantee Fund for 
external actions – see note 2.4.1. 

2.14.3.  Other reserves 

The amount relates primarily to the reserves of the ECSC in Liquidation (EUR 1 275 million) for the assets 
of the Research Fund for Coal and Steel, which were created in the context of the winding-up of the ECSC 
i.L. 

2.15.  AMOUNTS TO BE CALLED FROM MEMBER STATES 

Amounts to be called from Member States at 31.12.2019 
Return of budget surplus to Member States 
Movement in Guarantee Fund reserve 
Remeasurements of employee benefits liabilities 
Other reserve movements 
Economic result of the year 
Total amounts to be called from Member States at 31.12.2020 

EUR million 

77 560 
3 218 
 173 
15 155 
 (210) 
(57 416) 
38 480 

This  amount  represents  that  part  of  the  expenses  incurred  by  the  EU  up  to  31 December that  must  be 
funded  by  future  budgets.  Many  expenses  are  recognised  under  accrual  accounting  rules  in  the  year  N 
although they may be actually paid in year N+1 (or later) and therefore funded using the budget of year 
N+1  (or  later).  The  inclusion  in  the  accounts  of  these  liabilities  coupled  with  the  fact  that  the 
corresponding amounts are financed from future budgets, results in liabilities greatly exceeding assets at 

89 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

the year-end. The most significant amounts to be highlighted concern the EAGF activities and employee 
benefit liabilities. 

It should also be noted that the above has no effect on the budget result – budget revenue should always 
equal or exceed budget expenditure and any excess of revenue is returned to Member States. 

The remeasurements of employee benefits liabilities relate to actuarial gains and losses arising from the 
actuarial valuation of these liabilities. 

The  considerable  decrease  of  the  amounts  to  be  called  from  Member  States  is  primarily  due  to  the 
revenue related to the net amounts owed by the UK under the WA signed following its departure from the 
Union in 2020 – see note 2.6.1.2. 

90 

 
 
 
Annual accounts of the European Union 2020 

3.  NOTES TO THE STATEMENT OF FINANCIAL 

PERFORMANCE 

REVENUE 

REVENUE FROM NON-EXCHANGE TRANSACTIONS:            
OWN RESOURCES 

3.1.  GNI RESOURCES 

Own  resources  revenue  is  the  primary  element  of  the  EU's  operational  revenue.  GNI  (gross  national 
income) revenue amounts to EUR 125 393 million for 2020 (2019: EUR 108 820 million) and is the most 
significant of the three  categories of  own  resources. A uniform percentage is levied on the GNI of each 
Member State. The GNI revenue balances revenue and expenditure i.e. funds the part of the budget that 
is not covered by other sources of income. The increase of GNI revenue reflects the increase in payment 
appropriation  needs  for  the  year  2020,  meant  to  reinforce  key  EU  policies.  In  2020,  these  key  policies 
included  the  COVID-19  vaccines  strategy  (through  Emergency  Support  Instrument  –  ESI)  and  the 
Coronavirus Response Investment Initiative Plus, CRII+.   

3.2.  TRADITIONAL OWN RESOURCES 

Traditional  own  resources  relate  mainly  to  customs  duties  where  Member  States  retain,  by  way  of 
collection  costs,  20%  of  the  amounts,  so  the  above  figures  are  net  of  this  deduction.  The  decrease  in 
customs duties is primarily due to lower collections due to the economic crisis. 

3.3.  VAT RESOURCES 

The  VAT  resource  was  the  first  to  be  largely  harmonised  at  the  EU  level.  The  VAT  contribution  is 
calculated by applying a uniform call rate of 0.3% to the national VAT base, which cannot exceed 50% of 
the gross national income (GNI) of each Member State. For the period 2014-2020, the Council Decision 
2014/335/EU,  Euratom,  foresees  a  reduced  rate  of  call  of  0.15%  for  Germany,  the  Netherlands  and 
Sweden. 

REVENUE FROM NON-EXCHANGE TRANSACTIONS:  
TRANSFERS 

3.4.  FINES 

Revenue of EUR 452 million (2019: EUR 4 291 million) relates to fines the Commission has imposed on 
companies  for  breaches  of  EU  competition  rules  and  fines  the  Commission  has  imposed  on  Member 
States  for  infringements  of  EU  law.  The  Commission  recognises  revenue  from  fines  when  it  adopts  the 
decision to impose a fine and it officially notifies the addressee. The amounts relate mainly to competition 
fines (EUR 370 million). The biggest cases concern breaches of EU antitrust rules, i.e. a fine imposed on 
companies Orbia, Clariant and Celanese for a total amount of EUR 260 million for taking part in a cartel 
concerning purchases on the ethylene merchant market, along with fines imposed on the pharmaceutical 
companies Teva and Cephalon for an amount of EUR 60 million for agreeing to delay the market entry of 
a cheaper generic version of Cephalon’s sleep disorder medicine.  

91 

 
Annual accounts of the European Union 2020 

3.5.  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 

This heading mainly represents the recovery orders issued by the Commission that are cashed or offset 
against (i.e. deducted from) subsequent payments recorded in the Commission's accounting system. The 
recovery  orders  are  issued  so  as  to  recover  expenditure  previously  paid  out  from  the  EU  budget. 
Recoveries are based on controls, audits or eligibility analysis and therefore, these operations protect the 
EU budget from expenditure incurred in breach of law. 

Recovery orders issued by Member States to beneficiaries of EAGF expenditure, as well as the variation of 
accrued income estimations from the previous year-end to the current year-end, are also included. 

The  amounts  included  in  the  above  table  represent  revenue  earned  through  the  issuance  of  recovery 
orders.  For  this  reason,  these  figures  cannot  and do  not  show  the  full  extent of  the  measures taken  to 
protect the EU budget, particularly for cohesion policy where specific mechanisms are in place to ensure 
the  correction  of  ineligible  expenditure,  most  of  which  do  not  involve  the  issuance  of  a  recovery  order. 
Not  included  are  amounts  recovered  through  offsetting  with  expenses,  amounts  recovered  by  way  of 
withdrawals and recoveries of pre-financing amounts. 

Shared management recoveries make up the bulk of the total: 

Agriculture: EAGF and rural development 

In the framework of the EAGF and the EAFRD, amounts accounted for as revenue of the year under this 
heading  are  financial  corrections  of  the  year  and  reimbursements  declared  by  Member  States  and 
recovered during the year, as well as the net increase in  the outstanding amounts declared by Member 
States to be recovered at year-end concerning fraud and irregularities. 

Cohesion policy 

The main amounts related to cohesion policy correspond to accrued income of EUR 0.4 billion (2019: EUR 
1.4 billion) that the Commission expects to recover from the Member States. The recovery will be made 
as a result of the examination and acceptance of the annual accounts submitted by the Member States in 
early 2021. The amounts to  be  recovered represent  essentially  the difference  between amounts initially 
declared  as  eligible  during  the  accounting  year  and  the  amounts  confirmed  as  eligible  in  the  annual 
accounts  of  the  Member  States.  A  low  amount  means  that  the  controls  in  place  at  Member  State  level 
enabled the detection of ineligible amounts early in the process.  

3.6.  UK WITHDRAWAL AGREEMENT 

This  revenue  relates  to  the  net  amounts  owed  by  the  UK  under  the  WA  signed  following  its  departure 
from the Union in 2020 – see note 2.6.1.2. 

92 

 
 
 
 
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3.7.  OTHER REVENUE FROM NON-EXCHANGE 

TRANSACTIONS 

Contributions from Member States for the Innovation Fund 
Staff taxes and contributions 
Contributions from third countries 
Contributions from Member States for ESI and external aid 
Transfer of assets 
Budgetary adjustments 
Other 
Total 

2020 
2 080 
1 316 
1 592 
1 073 
 317 
 214 
 524 
7 116 

EUR million 
2019 
– 
1 299 
1 509 
 331 
 60 
(1 719) 
592 
2 072 

Contributions from  Member  States to  the  Innovation  Fund are  revenues relating to the sale of emission 
allowances (EUR 1 334 million) and the transfer of the unspent NER300 funds (EUR 747 million) that are 
to be used to support innovation in low-carbon technologies. The EIB is entrusted with the monetisation 
of  the  allowances  and  with  the  management  of  the  NER300  funds  on  behalf  of  the  Member  States.  At 
year-end,  EUR  1  336  million  out  of  the  total  EUR  2  080  million  has  been  transferred  by  the  EIB  to  the 
Commission and is included as cash (net of the amount spent in 2020)  – see note 2.8.1. The remaining 
revenue of EUR 744 million has not yet been recovered at the end of 2020 and is therefore recognised as 
a non-exchange recoverable – see note 2.6.1.5. 

Staff  taxes  and  contributions  revenue  relate  primarily  to  the  deductions  from  staff  salaries.  Retirement 
contributions and income tax represent the substantial amounts within the category. 

Contributions  from  third  countries  are  mainly  contributions  from  EFTA  countries  and  pre-accession 
countries  (EUR  1  293  million)  as  well  as  financial  contributions  of  third  states  to  the  H2020  (EUR  297 
million). 

The Member States have contributed EUR 750 million as a top-up to the Emergency Support Instrument 
(ESI), as well as EUR 265 million to finance the Facility for Refugees in Turkey. 

Transfer of assets revenue relates mainly to the transfer of satellite 6A under the Copernicus programme 
from  the  European  Space  Agency  (ESA)  to  the  Commission  –  see  note  2.2.  This  transfer  is  a  non-
exchange transaction according to the EU accounting rules. 

The  increase  in  budgetary  adjustments  is  mainly  driven  by  the  increase  of  the  budget  surplus  taken  in 
from the previous year, which amounted to EUR 3 218 million in 2020 as compared to EUR 1 803 million 
in  2019.  The  budget  surplus  was  counterbalanced  by  the  annual  adjustment  of  VAT  and  GNI,  which 
amounted to EUR 3 165 million in 2020 as compared to EUR 3 443 million in 2019. 

Other  revenue  from  non-exchange  transactions  includes  the  ITER  Host  State  and  Membership 
contributions  to  Fusion  for  Energy,  the  European  Joint  Undertaking  for  ITER  and  the  Development  of 
Fusion Energy (EUR 156 million). 

93 

 
 
 
 
Annual accounts of the European Union 2020 

REVENUE FROM EXCHANGE TRANSACTIONS 

3.8.  FINANCIAL REVENUE 

Interest on: 
     Late payments 
     Loans 
     Other  
Issue premiums  
Premium on financial guarantee liability 
Dividends 
Financial revenue from financial assets or liabilities at fair value through 
surplus or deficit 
Realised gains on available for sale financial assets 
Other 
Total 

2020 

1 129 
1 167 
 63 
 674 
 258 
 22 

 70 

 48 
 3 
3 434 

EUR million 
2019 

 133 
1 180 
 70 
 2 
 193 
 29 

 125 

 82 
 2 
1 817 

Interest revenue on late payments stems mainly from fines and own resources contributions due and not 
paid  on  time.  The  main  amounts  concern  the  infringement  case  referred  to  in  note  2.6.1.1 
(EUR 0.5 billion) and revenue estimated for a case  against Netherlands for evading anti-dumping duties 
on solar panels (EUR 0.3 billion). 

Interest revenue on loans relates mainly to loans granted for financial assistance – see note 2.4.3. 

The  issue  premiums  of  EUR  674  million  relate  primarily  to  the  issuance  of  SURE  borrowings,  for  which 
proceeds were received above the nominal value of the bonds issued. Those revenues were passed on to 
the  Member  States  benefitting  from  the  assistance  programmes,  leading  to  a  recognition  of 
EUR 672 million of financial expenses – see note 3.14. 

Premium on financial guarantee liability relates primarily to the risk-sharing revenues received from the 
EIB in relation to the EFSI guarantee on the EFSI IIW debt portfolio – see note 2.11.3. 

3.9.  OTHER REVENUE FROM EXCHANGE TRANSACTIONS 

Fee revenue for rendering of services (agencies) 
Foreign exchange gains 
Sales of goods 
Share of net result of EIF 
Fee and premium revenue related to financial instruments 
Fixed assets related revenue 
Other 
Total 

2020 
 640 
 370 
 48 
 38 
 34 
 5 
269 
1 404 

EUR million 
2019 
 592 
 347 
 31 
 53 
 43 
 5 
 227 
1 298 

Fee  revenue  for  rendering  of  services  mainly  includes  marketing  authorisation  fees  charged  by  the 
European  Medicines  Agency  and  trademark  fees  collected  by  the  European  Union  Intellectual  Property 
Office. 

94 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

EXPENSES 

3.10.  SHARED MANAGEMENT 

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 

The increase mainly concerns cohesion policy (ERDF, CF) where almost all expenses relate to the 2014-
2020 programming period, where the activities continue to advance. 

Other  expenses  mainly  include:  Asylum  and  Migration  (EUR  0.6  billion),  Fund  for  European  Aid  to  the 
Most  Deprived  (EUR  0.6  billion),  Internal  Security  (EUR  0.5  billion),  European  Union  Solidarity  Fund 
(EUR 0.3 billion) and European Maritime and Fisheries Fund (EUR 0.6 billion).  

The  evolution  of  EAGF  amounts  is  mostly  related  to  the  reduction  in  amounts  claimed  for  direct 
payments,  mainly  because  there  are  no  agricultural  direct  payments  for  the  UK  farmers  for  claim  year 
2020 (decrease of EUR 2.6 billion compared to previous year).  

3.11.   DIRECT MANAGEMENT 

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

2020 
11 429 
10 029 
 636 
22 094 

EUR million 
2019 
8 435 
10 095 
 412 
18 942 

These  amounts  mainly  concern  the  implementation  of  Research  Policy  (EUR 7.2  billion),  Transport 
Infrastructure  Policy  (EUR 3.9  billion),  Development  Co-operation  Instrument  (EUR 1.6 billion)  and 
European Neighbourhood Policy (EUR 1.8 billion). 

The  increase  in  direct  management  expenses  implemented  by  the  Commission  relates  mainly 
(EUR 1.6 billion)  to  the  COVID-19  vaccination  programmes  and  to  the  European  Neighbourhood  Policy 
(EUR 0.6 billion). 

3.12.  INDIRECT MANAGEMENT 

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

2020 
3 530 
 559 
3 619 
3 257 
10 965 

EUR million 
2019 
3 131 
 637 
3 448 
2 875 
10 091 

Under  indirect  management  expenses,  EUR 4.2  billion  relates  to  external  actions  (mainly  the  areas  of   
pre-accession, humanitarian aid, international co-operation and neighbourhood). A further EUR 5.1 billion 
is related to increasing Europe's competitiveness (in areas such as research, satellite navigation systems 
and education).  

95 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

3.13.  STAFF AND PENSION COSTS 

Staff costs 
Pension costs 
Total 

2020 
7 028 
4 967 
11 995 

EUR million 
2019 
6 939 
4 674 
11 613 

Pension costs represent elements of the movements that have arisen following the actuarial valuation of 
the  employee  benefits  liabilities  other  than  those  recognised  in  Net  Assets.  They  do  not  therefore 
represent actual pension payments of the year, which are significantly lower. 

3.14.  FINANCE COSTS 

Interest expenses: 
     Borrowings 
     Other 
Issue costs 
Impairment losses on loans and receivables 

Loss on financial assets or liabilities at fair value through surplus or 
deficit 

Finance leases 
Impairment losses on available for sale financial assets 
Realised loss on available for sale financial assets 
Other  
Total 

2020 

1 160 
 24 
 672 
 110 

 21 

 62 
 41 
 5 
 92 
2 188 

EUR million 
2019 

1 174 
 23 
 1 
 105 

 57 

 70 
 19 
 7 
 34 
1 491 

The  amount  of  interest  expense  on  borrowings  corresponds  mainly  to  interest  income  on  loans  for 
financial assistance (back-to-back transactions). 

The  issue  costs  of  EUR 672 million  relate  mainly  to  the  SURE  programme,  for  which  issue  premiums 
received  in  relation  to  the  borrowings  were  passed  on  to  the  Member  States benefitting  from  the  loans 
(see also note 3.8). 

3.15.  OTHER EXPENSES 

Administrative and IT expenses 
Adjustment of provisions 
Fixed assets related expenses 
Land and buildings management expenses 
Foreign exchange losses 
Operating lease expenses 
Other 
Total 

2020 
1 984 
1 390 
1 319 
 661 
 578 
 423 
 593 
6 946 

EUR million 
2019 
2 154 
1 294 
1 201 
 568 
 343 
 442 
 860 
6 862 

Following a more appropriate presentation of the expenses in 2020 (staff, administrative & IT and Land & 
Building expenses) the 2019 comparative figures have been adapted accordingly. 

96 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

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 
 402 
 118 
 520 

EUR million 
2019 
 398 
 119 
 517 

97 

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

Annual accounts of the European Union 2020 

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 development instruments 

     ERDF & CF 

     ESF 

     Other 
Implemented by the EC, executive agencies and trust 
funds 
Implemented by other EU agencies and bodies 

Implemented by third countries and int. org. 

Implemented by other entities 

Staff and Pension costs 

Finance costs 

Other expenses 

Total expenses 

Economic result of the year 

Smart and 
inclusive growth 
– 

Sustainable 
growth 
– 

Security and 
citizenship 
– 

Global 
Europe 
– 

– 

– 

– 

 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) 

– 

– 

 (641) 

 (728) 

 (67) 

 (6) 

 (11) 

 (387) 

 (38) 

 (229) 

Administration 

– 

– 

– 

– 

 0 

– 

4 874 

4 874 

 (0) 

 309 

 309 

Not assigned to 
MFF heading* 
125 393 

19 559 

17 858 

 452 

 (0) 

EUR million 
Total 

125 393 

19 559 

17 858 

 452 

1 355 

47 456 

47 456 

(2 383) 

7 116 

208 336 

219 190 

3 095 

 987 

4 082 

3 434 

1 404 

4 838 

5 183 

212 418 

224 028 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

(40 461) 

(14 467) 

(41 118) 

(13 677) 

(2 701) 

– 

– 

– 

 17 

– 

 794 

 811 

 0 

 (5) 

 (5) 

 806 

– 

– 

– 

– 

– 

– 

– 

 14 

– 

 248 

 262 

 9 

 (3) 

 5 

 267 

– 

– 

– 

– 

(1 325) 

 (141) 

(2 943) 

(5 693) 

 (12) 

 25 

(22 094) 

(1 114) 

 (29) 

 (195) 

(3 435) 

 (2) 

 (500) 

 (0) 

 (162) 

 (787) 

 (706) 

 (37) 

 (135) 

– 

– 

 (0) 

(7 551) 

 (89) 

(2 988) 

 967 

– 

 1 

(3 530) 

(4 178) 

(3 257) 

(1 084) 

(11 995) 

(1 984) 

 (756) 

(2 188) 

(6 946) 

(78 902) 

(76 356) 

(57 035) 

(54 228) 

(6 241) 

(10 962) 

(10 640) 

(2 831)  (166 612) 

(5 435) 

(10 695) 

(5 457) 

209 587 

57 416 

* ‘Not-assigned to MFF heading’ includes consolidated entities' budget execution and consolidation eliminations, off-budget operations and unallocated programmes with individually immaterial amounts. 

The display of revenue and expenses by MFF heading is based on estimation as not all commitments are linked to an MFF heading. 

98 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

4. 

CONTINGENT LIABILITIES AND ASSETS 

4.1.  CONTINGENT LIABILITIES 

Contingent liabilities are possible future payment obligations for the EU that may arise due to past events 
or  legally  binding  commitments  taken  but  which  will  depend  on  future  events  not  wholly  under  the 
control  of  the  EU.  They  relate  mainly  to  financial  guarantees  given  (on  loans  and  financial  assistance 
programmes) and to legal risks. All  contingent liabilities, except those  relating to fines, guarantees and 
financial  instruments  up  to  the  level  they  are  covered  by  funds  (see  note  2.4.1),  would  be  financed, 
should they fall due, by the EU budget (and thus the EU Member States) in the years to come. 

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 

The above table shows the extent of the exposure of the EU budget to possible future payments linked to 
guarantees  given  to  the  EIB  group  or  other  financial  institutions.  Disbursed  amounts  represent  the 
amounts already given to  final beneficiaries, while  signed amounts include these  disbursed monies plus 
agreements  already  signed  with  beneficiaries  or  financial  intermediaries  but  not  yet  disbursed  (EUR 18 
126 million). The ceiling represents the total guarantee that the EU budget, and thus its Member States, 
have  committed  to  cover,  since  in  order  to  disclose  the  maximum  exposure  faced  by  the  EU  at 
31 December 2020, one must also include operations authorised to be signed but not yet signed (EUR 5 
486 million).  The  amounts  are  presented  net  of  financial  provisions  or  financial  liabilities  recognised  for 
those programmes. 

EIB external lending mandate guarantees 

The  EU  budget  guarantees  loans  signed  and  granted  by  the  EIB  from  the  EIB's  own  resources  to  third 
countries.  At  31  December  2020  the  amount  of  loans  outstanding  and  covered  by  the  EU  guarantee 
totalled EUR 20 050 million (2019: EUR 20 014 million). The EU budget guarantees: 

 

 

EUR 19 310 million (2019: EUR 19 074 million) via the Guarantee Fund for external actions (see 
note 2.4.1), and 

EUR 740  million  (2019:  EUR  940  million)  directly  for  loans  granted  to  Member  States  before 
accession. 

In  addition  to  the  EUR  20  050  million  disclosed  above  as  disbursed,  the  EU  guarantees  a  further 
EUR 113 million of outstanding loans to Syria for which provisions have been made, and EUR 90 million 
recognised  as  a  financial  guarantee  liability  for  the  EIB  Economic  Resilience  Initiative  (ERI)  Private 
Mandate (see below). 

The EU external lending mandate guarantee relating to loans granted by the EIB is limited to 65% of the 
outstanding  balances  for  agreements  signed  after  2007  (mandates  2007-2013  and  2014-2020).  For 
agreements  made  before 2007,  the  EU  guarantee  is  limited  to  a  percentage of  the  ceiling  of  the  credit 
lines authorised, in most cases 65% but also 70%, 75% or 100%. Where the ceiling is not reached, the 
EU guarantee covers the full amount. 

According  to Decision  (EU)  2018/412,  up  to  EUR 2.3  billion  shall  be  allocated  to  the  new  private  sector 
lending  mandate  for  projects  directed  to  the  long  term  economic  resilience  of  refugees,  migrants,  host 
and transit communities under the EIB ERI. The EIB disbursed the first ERI Private Mandate operations in 
2019.  The  Union  budget  is  remunerated  for  the  risk  taken  in  relation  to  guarantees  granted  for  EIB 

99 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

finacing  operations  under  the  ERI  Private  Mandate,  hence  the  ERI  Private  Mandate  guarantee  is 
accounted for as a financial guarantee liability (see note 2.11.3). 

EU  guarantee  payments  are  made  by  the  Guarantee  Fund  for  external  actions:  During  2020, 
EUR 52 million  of  guarantee  calls  have  been  paid  out  from  the  Guarantee  Fund  for  external  actions 
(2019: EUR 55 million). 

European Fund for Strategic Investments (EFSI) guarantee 

EFSI is an initiative that aims to increase the risk bearing capacity of the EIB Group by enabling the EIB 
to extend its investments in the EU. The objective of EFSI is to support additional investments in the EU 
and access to finance  for small  companies.  The  EU budget provides a guarantee of up to EUR 26 billion 
('EFSI EU guarantee') under an agreement between the EU and the EIB, hereinafter referred to as 'EFSI 
Agreement',  in  order  to  protect  the  EIB  from  potential  losses  it  may  suffer  from  its  financing  and 
investment operations. 

The EFSI operations are conducted within two windows: the Infrastructure and Innovation Window (IIW) 
implemented  by  the  EIB  (EFSI  EU  guarantee  of  EUR 19 250 million)  and  the  SME  Window  (SMEW) 
implemented  by  the  EIF  (EFSI  EU  guarantee  of  EUR 6 750  million),  both  of  which  have  a  debt  portfolio 
and an equity portfolio. The EIF acts under an agreement with the EIB on the basis of an EIB guarantee, 
which itself is counter-guaranteed by the EFSI EU Guarantee under the EFSI Agreement. 

The EU  and the EIB have  distinct  roles within EFSI.  EFSI is established within the EIB,  who finance  the 
operations  (debt  and  equity  investments)  and,  to  do  this,  borrow  the  necessary  funds  on  the  capital 
markets.  The  EIB  Group  takes  the  investment  decisions  independently  and  manages  the  operations  in 
accordance  with  its  rules  and  procedures.  The  EU  provides  the  guarantee  for  those  operations,  and 
covers losses incurred by the EIB up to the ceiling of this guarantee. 

In  order  to  ensure  that  investments  made  under  EFSI  remain  focused  on  the  specific  objective  of 
addressing market failures and that they are eligible for the protection of the EU guarantee, a dedicated 
governance structure has been put in place, including an Investment Committee of independent experts 
which  examines  each  project  proposed  by  the  EIB  under  the  IIW  regarding  its  eligibility  for  the  EU 
guarantee coverage and EFSI Steering Board ensuring an oversight over the programme. 

As the control criteria and accounting requirements for consolidation under the EU accounting rules (and 
IPSAS)  are  not  met,  the  related  guaranteed  assets  are  not  accounted  for  in  the  consolidated  annual 
accounts of the EU. 

The EU guarantee granted to the EIB Group under EFSI is accounted for as a financial guarantee liability 
in respect of the IIW debt portfolio (see note 2.11.3), as a financial provision for the SMEW debt portfolio 
(see note 2.10) and as a derivative (financial asset or liability at fair value through surplus or deficit) for 
both  equity  portfolios  (see  note  2.4.2).  In  addition,  a  contingent  liability  related  to the  EFSI  guarantee 
given  is  disclosed  in  this  note.  The  EFSI  contingent  liability  includes  operations  of  the  COSME,  H2020, 
CCS  LGF  and  EaSI  programmes  for  the  part  covered  by  the  EFSI  EU  guarantee  under  SMEW  debt 
portfolio, and is presented net of EUR 290 million of financial provisions recognised for this portfolio, as 
included under the heading financial provisions in the note 2.10. 

EU  guarantee  payments,  not  covered  by  the  EU  revenues  standing  in  credit  on  the  EFSI  settlement 
account at the EIB, are made by the EFSI Guarantee Fund – see note 2.4.1. During 2020, EUR 1 million 
of guarantee calls have been paid out from the EFSI Guarantee Fund (2019: EUR zero). 

European Fund for Sustainable Development (EFSD) 

The  European  Fund  for  Sustainable  Development,  established  by  the  EFSD  Regulation,  is  an  initiative 
aiming to support investments in Africa and the European Neighbourhood as a means to contribute to the 
achievement  of  the  sustainable  development  and  to  address  specific  socio-economic  root  causes  of 
migration.  Under  the  EFSD  Regulation,  the  EU  should  make  available  guarantees  of  EUR  1.5  billion 
(further increased by external contributions) to implementing partners for their investment and financing 
operations,  in  order  to  reduce  their  investment  risks.  The  EFSD  Guarantee  is  backed  by  the  EFSD 
Guarantee  Fund  –  see  note  2.4.1.  As  at  31  December  2020,  fifteen  EFSD  guarantee  agreements  were 
effective  with  the  total  guarantee  cover  limit  amounting  at  EUR  1  370  million  (2019:  EUR 50  million), 
while  the  operations  signed  by  the  counterparts  and  guaranteed  by  the  EU  under  those  agreements 
totalled EUR 438 million (2019: EUR zero).  

100 

 
UK obligations arising from its departure from the EU 

Annual accounts of the European Union 2020 

In accordance  with Article 143  of  the  Withdrawal Agreement, the UK  shall be liable to the Union for its 
share  of  contingent  financial  liabilities  related  to  EFSI,  EFSD  and  the  EIB  external  lending  mandate 
operations  approved  at  the  withdrawal  date,  31  January  2020.  Article  143  requires  that  in  case  of  a 
guarantee call for a financial operation that has been approved before the withdrawal date, the UK would 
be liable  to the Union  for its share  of  payments  made by the Union under  those  operations,  unless this 
could be covered by the UK share of provisioning held in the guarantee fund where this is relevant. 

For  EIB  external  lending  mandate  loans  (ELM),  the  value  of  the  EU  budgetary  guarantee  at  the 
withdrawal  date,  for  the  operations  approved  by  the  withdrawal  date,  was  EUR  33.7  billion.  At  31 
December  2020  this  had  changed  to  EUR  30.9  billion.  The  UK  share  of  this  contingent  liability  at  31 
December  2020  is  thus  EUR  3.8  billion.  As  stated  above  however,  any  default  on  these  loans  is  first 
covered by the guarantee fund for external actions and amounts would only be called from the UK if the 
UK provisioning for this fund, of EUR 347 million at 31 December 2020, was not sufficient. 

With respect to EFSI operations, the value of the EU budgetary guarantee at the withdrawal date, for the 
operations  approved  by  the  withdrawal  date,  was  EUR  23.5  billion.  At  31  December  2020  this  had 
changed  to  EUR  19.9  billion.  The  UK  share  of  this  contingent  liability  at  31  December  2020  is  thus 
EUR 2.5 billion.  Any  guarantee  calls  under  EFSI  are  first  covered  by  the  EFSI  guarantee  fund  and 
amounts would only  be  called from  the UK  if  the  UK  provisioning for this fund, of EUR 1.1 billion at 31 
December 2020, was not sufficient. 

As  no  operations  had  been  approved  by  the  implementing  partners  in  relation  to  the  EFSD  Guarantee 
before the withdrawal date, the UK has no obligations here. 

The payments made out of the provisions held in the guarantee funds for the operations approved  on or 
after  the  withdrawal  date  and  up  to  31  December  2020  are  as  follows:  nil  for  EFSI  and  nil  for  ELM.  In 
addition EUR 2.8 million of EFSI guarantee calls, fees and costs were made for the operations approved 
on or after the withdrawal  date and up  to 31  December  2020,  which  were covered  by  the  EU  revenues 
held  on  the  EFSI  settlement  account  at  EIB  (EUR  0.19  million)  and  from  SMEW  available  amounts 
(EUR 2.7 million) as per the EFSI Agreement. As per the WA these payments did not reduce the UK share 
of the provisioning. 

4.1.2.  Guarantees relating to financial assistance (borrowing and lending activities) 

EFSM 
SURE 
BOP 
MFA 
Euratom 
Total 

Drawn 
47 396 
39 503 
 201 
5 813 
 279 
93 193 

31.12.2020 
Undrawn 
– 
46 363 
– 
1 335 
 100 
47 798 

Total 
47 396 
85 867 
 201 
7 148 
 379 
140 991 

Drawn 
47 394 
- 
 201 
4 754 
 214 
52 564 

31.12.2019 
Undrawn 
– 
- 
– 
 560 
 200 
 760 

EUR million 

Total 
47 394 
- 
 201 
5 314 
 414 
53 324 

The  EU  budget  guarantees  the  borrowings  of  the  Commission  taken  to  finance  lending  to  Member  and 
non-Member  States  in  back-to-back  transactions.  These  borrowings  are  already  recognised  as  liabilities 
on  the  EU  balance  sheet  –  see  note  2.11.1.  However,  should  there  be  a  default  on  the  back-to-back-
loans  given  out  with  these  borrowings,  the  EU  budget,  based  on  Article  14  of  Council  Regulation 
609/2014, would have to bear the full cost of the amount defaulted: 

  Borrowings related to loans disbursed under the EFSM are guaranteed solely by the EU budget; 

  Borrowings  related  to  SURE  are  underpinned  by  Member  States  guarantees  of  EUR  25  billion 
(25%  of  the  maximum  financial  assistance  amount  of  EUR  100  billion).  The  undrawn 
commitments  relate  to  loan  agreements  signed  in  2020  and  for  which  the  disbursement  is 
expected in 2021.  

  Borrowings related to BOP loans are guaranteed solely by the EU budget; 

101 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

  MFA loans are firstly guaranteed by the Guarantee Fund for external actions (see note 2.4.1) and 

then by the EU budget; and  

  Guarantees  from  third  parties  are  the  first  cover  for  the  entire  amounts  of  the  outstanding 
Euratom  loans.  The  Guarantee  Fund  would  cover  the  external  lending  amounts  should  the third 
party guarantors not provide for them. 

UK obligations arising from its departure from the EU 

In accordance  with Article 143  of  the  Withdrawal Agreement, the UK  shall be liable to the Union for its 
share of contingent financial liabilities related to the loans for financial assistance (EFSM, MFA, BOP and 
Euratom) approved/decided at the withdrawal date, 31 January 2020. Article 143 requires that in case of 
a default under a loan for financial assistance that has been approved before the withdrawal date, the UK 
would be liable to the Union for its share of payments made by the Union under the defaulted operation, 
unless  this  could  be  covered  by  the  UK  share  of  provisioning  held  in  the  guarantee  fund  for  external 
actions where this is relevant (i.e. MFA and Euratom loans in third countries) – see note 4.1.1. 

The EU’s outstanding contingent liability relating to the above loans for financial assistance amounted to 
EUR 53.9  billion  as  at  withdrawal  date.  Following  repayments  since  that  date,  the  value  of  these  loans 
covered  by  the  EU  guarantee  at  31  December  2020  is  EUR  53.2  billion  –  the  UK’s  share  of  this  is 
EUR 6.6 billion. 

4.1.3.  Guarantees given for EU financial instruments 

Horizon 2020 
Connecting Europe Facility 
Risk Sharing Finance Facility 
Other 
Total 

31.12.2020 
1 860 
 579 
 37 
 49 
2 524 

EUR million 
31.12.2019 
1 584 
 684 
 110 
 38 
2 416 

As  mentioned  in  Article  210(1)  FR,  the  budgetary  expenditure  linked  to  a  financial  instrument  and  the 
financial  liability  of  the  EU  shall  in  no  case  exceed  the  amount  of  the  relevant  budgetary  commitment 
made for it, thus excluding contingent liabilities for the budget. In practice, it means that these liabilities 
have a counter-part on the asset side of the balance sheet or are covered by the outstanding budgetary 
commitments not yet expensed. The contingent liabilities above are shown net of financial provisions and 
financial liabilities recognised for these instruments – see notes 2.10 and 2.11.2. 

UK obligations arising from its departure from the EU 

With regard to the EU’s contingent liabilities for amounts approved by the withdrawal date in relation to 
EU financial instruments, including those above, should any of these contingencies crystalise, they would 
be  covered  by  the  EU  budget  using  monies  held  on  fiduciary  accounts.  Thus  in  principle  no  amounts 
would be called by the UK other than its share in the budgetary RAL as outlined under Article 140 of the 
WA – see note 2.6.1.2. 

4.1.4. 

Legal cases 

Fines 
Agriculture 
Cohesion 
Other 
Total 

31.12.2020 
2 985 
 66 
 341 
2 169 
5 561 

EUR million 
31.12.2019 
3 128 
 199 
 341 
2 137 
5 805 

102 

 
 
 
 
 
 
 
 
Fines 

Annual accounts of the European Union 2020 

These  amounts  mainly  concern  fines  imposed  by  the  Commission  for  infringement  of  competition  rules 
that  have  been  provisionally  paid  by  fined  companies  and  where  either  an  appeal  has  been  lodged  or 
where it is unknown whether an  appeal  will  be made. The contingent liability will be maintained until a 
decision by the Court of Justice on the case is final or until the expiry of the period for appeal. Interest 
earned on provisional  payments is included in the  economic result of the year  and  also as a contingent 
liability to reflect the uncertainty of the Commission’s title to these amounts. 

Should the EU lose any of the cases relating to fines imposed, the amounts that have been provisionally 
received  will  be  returned  to  the  companies  without  budgetary  impact.  The  amount  of  fines  is  only 
recognised as budgetary revenue when the fines are definitive (Article 107 FR). 

Agriculture 

These are contingent liabilities towards the Member States connected with EAGF and rural development 
conformity decisions pending judgement of the Court of Justice. The determination of the final amount of 
the  liability  and  the  year  in  which  the  effect  of  successful  appeals  will  be  charged  to  the  budget  will 
depend on the length of the procedure before the Court. 

Cohesion 

These  are  contingent  liabilities  towards  the  Member  States  in  connection  with  actions  under  cohesion 
policy awaiting the oral hearing date or pending judgement of the Court of Justice.  

Other legal cases 

This heading relates to actions for damages currently being brought against the EU, other legal disputes 
and the estimated legal costs. It should be noted that in an action for damages under Article 340 TFEU, 
the applicant must demonstrate a sufficiently serious breach by the institution of a rule of law intended to 
confer  rights  on  individuals,  real  harm  suffered  by  the  applicant,  and  a  direct  causal  link  between  the 
unlawful act and the harm. The amount for 2020 (as in 2019) mainly concerns a damages claim against 
the  Commission  for  a  merger  prohibition  decision,  where,  in  the  absence  of  a  reliable  estimate,  the 
amount disclosed relates to the claimed amount. 

UK obligations arising from its departure from the EU 

Under Article 147 of the WA, the United Kingdom shall be liable for its share of the payments required to 
discharge  the  contingent  liabilities  of  the  Union  that  become  due  in  relation  to  legal  cases  concerning 
financial  interests  of  the  Union,  provided  that  the  facts  forming  the  subject  matter  of  those  cases 
occurred no later than 31 December 2020. Excluding the amounts concerning fines from the above table 
(since  the  cash  has  been  provisionally  received  from  the  fined  entity  and  would  not  need  to  be  funded 
fully  by  the  EU  budget  or  the  UK),  the  estimated  maximum  UK  exposure  here  is  EUR  318  million.  For 
legal  cases  where  it  is  considered  probable  that  amounts  will  be  paid  from  the  EU  budget  (see  note 
2.10), the UK share is included as part of the overall amount due from the UK  – see details under note 
2.6.1.2. 

4.2.  CONTINGENT ASSETS 

Guarantees received: 
     Performance guarantees 
     Other guarantees 
Other contingent assets 
Total 

31.12.2020 

EUR million 
31.12.2019 

 318 
 8 
 58 
 384 

 349 
 16 
 65 
 430 

Performance guarantees are requested to ensure that beneficiaries of EU funding meet the obligations of 
their contracts with the EU. 

103 

 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

5.  BUDGETARY AND LEGAL COMMITMENTS 

This note provides information on the  budgetary  process  and future funding needs and not on liabilities 
existing as at 31 December 2020. 

The  Multiannual  Financial  Framework  (MFF)  agreed  by  the  Member  States  defines  the  programmes  and 
sets  out  the  heading  ceilings  for  commitment  appropriations  and  the  total  for  payment  appropriations 
within which the EU may enter into budgetary and legal commitments, and ultimately make payments for 
a period of 7 years – see table 1.1 in the notes to the budgetary implementation reports. 

The  MFF  ceilings  were  adopted  by  the  Council  (Member  States),  with  the  consent  of  the  European 
Parliament,  and  Article  16  of  Regulation  2013/1306  on  the  financing  of  the  CAP  makes  a  direct  link 
between  the  annual  ceiling  of  EAGF  expenditure  and  the  MFF  Regulation.  The  European  Parliament  and 
the Council also adopted the respective basic acts for the EAGF expenditure that set out the expenditure 
per Member State for the entire period 2014-2020. 

Legal  commitments  correspond  to  programmes,  projects,  agreements  or  contracts  signed,  thus  legally 
binding  the  EU.  A  legal  commitment  is  the  act  whereby  the  authorising  officer  enters  or  establishes  an 
obligation (for the EU) which results in a charge (Article 2(37) FR). 

A  budgetary  commitment  is  in  principle  made  before  the  legal  commitment,  but  for  some  multiannual 
programmes/projects  it  is  the  reverse,  the  relevant  budgetary  commitments  being  made  in  annual 
instalments, over several years, when the basic act so provides for. For example, for cohesion, Article 76 
of the Common  Provisions Regulation  (CPR) (Regulation (EU)  No 2013/1303) provides that the decision 
of the Commission adopting a programme shall constitute a legal commitment within the meaning of the 
Financial  Regulation  but  that  the  budgetary  commitments  of  the  Union  in  respect  of  each  programme 
shall  be  made  in  annual  instalments  for  each  fund  during  the  period  between  1  January  2014  and 
31 December  2020.  Other  legal  bases  may  contain  similar  provisions.  For  this  reason,  there  may  be 
amounts  that  the  EU  has  legally  committed  to  pay,  but  where  the  budgetary  commitment  has  not  yet 
been made – see notes 5.2 and 5.3 below. 

If  the  budgetary  commitment  has  been  made  but  the  subsequent  payments  are  not  yet  made,  the 
amount of outstanding commitments is called ‘Reste à Liquider’ (RAL). This can represent programmes or 
projects,  often  multiannual,  signed  and  for  which  payments  will  only  be  made  in  later  years.  They 
represent  payment  obligations  for  future  years.  As  the  financial  statements  are  prepared on  an  accrual 
basis,  whereas  the  budgetary  implementation  reports  are  prepared  on  a  cash  basis,  part  of  the  overall 
amounts  unpaid  (RAL)  has  already  been  expensed and  is  recognised  as  a liability  on  the balance  sheet 
(see  notes  2.12  and  2.13).  The  calculation  of  these  expenses  is  made  based  either  on  cost 
claims/invoices received or on the estimated implementation of a programme or project where no claims 
have  been  notified  yet  to  the  EU  until  the  reporting  date  –  see  note  5.1  below.  Once  the  payments 
relating to the RAL are made, the liability on the balance sheet is derecognised. The part of the RAL not 
expensed yet is not included under liabilities but is instead disclosed below. 

The disclosures below thus represent amounts at 31 December 2020 that the  EU  has committed to pay 
based on the fulfilment of the contractual agreements and which are therefore intended to be funded by 
future EU budgets. 

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 
249 686 

249 309 

– 

72 832 

14 481 
263 790 

13 941 
336 459 

104 

 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

5.1.  OUTSTANDING BUDGETARY COMMITMENTS NOT YET 

EXPENSED 

Outstanding budgetary commitments not yet expensed 

31.12.2020 
249 309 

EUR million 
31.12.2019 
249 686 

The  amount  disclosed  above  is  the  budgetary  RAL  (‘Reste  à  Liquider’)  of  EUR 303 197 million  (see 
table 4.4  in  the  notes  to  the  budgetary  implementation  reports),  less  related  amounts  that  have  been 
included  as  liabilities  on  the  balance  sheet  and  as  expenses  in  the  statement  of  financial  performance. 
The  budgetary  RAL  is  an  amount  representing  the  open  commitments  for  which  payments  and/or 
decommitments  have  not  yet  been  made.  As  explained  above,  this  is  the  normal  consequence  of  the 
existence of multi-annual programmes. 

that  outstanding  pre-financing  advances  at  31 December 2020 

It  should  be  noted 
totalled 
EUR 62.7 billion – see note 2.5. This represents budgetary commitments that have been paid, decreasing 
the  RAL,  but  where  the  amounts  paid  are  still  considered  as  belonging  to  the  EU  and  not  to  the 
beneficiary,  until  the  relevant  contractual  obligations  are  fulfilled.  They  are  thus,  like  the  RAL  disclosed 
above, not yet expensed. 

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 

– 

 0 

– 

– 

 0 

 (0) 

– 

 (0) 

 (0) 
 (0) 

 (0) 

 0 

Total 
* The financial framework for the EAFRD covers the period 2014-2022 according to Regulation (EU) 2020/2220.   

499 750 

472 466 

472 466 

These are legal obligations that the EU has committed to pay when adopting the operational programmes 
related  to  shared  management.  The  decision  of  the  Commission  adopting  an  operational  programme 
constitutes  a  financing  decision  within  the  meaning  of  Article  110  FR  and  once  notified  to  the  Member 
State concerned, a legal commitment within the meaning of that Regulation. 

105 

 
 
 
 
 
 
 
 
 
 
 
 
 
Article 76 of the CPR for European Structural and Investment Funds (ESIF) states: 

Annual accounts of the European Union 2020 

‘The  budget  commitments  of  the  Union  in  respect  of  each  programme  shall  be  made  in  annual 
instalments for each Fund during the period between 1 January 2014 and 31 December 2020. The budget 
commitments relating to the performance reserve in each programme shall be made separately from the 
remaining allocation to the programme.’ 

The table above  provides an overview  of  the  legal and budgetary commitments related to the headings 
1B,  2  and  3  of  the  MFF  2014-2020.  The  table  starts  by  disclosing  the  total  MFF  amounts  voted  for  the 
period (column A). Column B shows the legal commitments concluded by the EU at year-end. Column C 
contains the budgetary commitments already made to cover the above mentioned legal commitments. At 
the end of the year 2020, the legal commitments are entirely covered by budgetary commitments.  

5.3.  SIGNIFICANT LEGAL COMMITMENTS IN OTHER AREAS 

Connecting Europe Facility 
ITER 
Copernicus 
Galileo  
Fisheries agreements 
Operating lease commitments 
Other contractual commitments 
Total 

31.12.2020 
4 140 
6 837 
– 
– 
 172 
2 547 
 785 
14 481 

EUR million 
31.12.2019 
7 680 
1 676 
 601 
 438 
 223 
2 535 
 788 
13 941 

These  amounts  reflect  the  long-term  legal  commitments  that  were  not  covered  by  commitment 
appropriations  in  the  budget  at  year-end.  These  binding  obligations  will  be  budgeted  in  annual 
instalments in future years and paid. 

Certain  important  programmes  (see  below)  may  be  implemented  by  annual  instalments  according  to 
Article  112(2)  FR.  This  allows  the  EU  to  make  legal  commitments  (sign  grant  agreements,  delegation 
agreements and procurement contracts) in excess of the available commitment appropriations of a given 
year.  Therefore  a  substantial  amount  of  the  overall  allocation  for  the  current  MFF  may  be  already 
committed. This applies in particular for the programmes described below: 

Connecting Europe Facility (CEF) 

The CEF provides financial assistance to trans-European networks in order to support projects of common 
interest  in  the  sectors  of  transport,  telecommunications  and  energy  infrastructures.  The  legal 
commitments for the CEF programme cover an implementation period running from 2014 until 2024 for 
the  CEF  Transport  and  up  to  31.12.2025  for  CEF  Energy.  The  legal  basis  of  these  commitments  is 
Regulation  (EU)  No  2013/1316  of  the  EP  and  of  the  Council  of  11  December  2013  establishing  the 
Connecting  Europe  Facility,  amending  Regulation  (EU)  No  2010/913  and  repealing  Regulations  (EC)  No 
2007/680 and (EC) No 2010/67 Text with EEA relevance (OJ L 348, 20 December 2013) which foresees 
the use of the annual instalment in its article 19. 

ITER – International Thermonuclear Experimental Reactor 

These commitments are intended to cover future funding needs of the ITER facilities up to 2027. The EU 
(Euratom)  contribution  to  ITER  International  is  given  through  the  Fusion  for  Energy  Agency,  including 
also the contributions from Member States and from Switzerland. The considerable year-on-year increase 
of the commitments reflects the  prospective financing  under the MFF 2021-2027 established by  Council 
decision  (Euratom)  2021/281  of  22  February  2021  amending  Decision  2007/198/Euratom  establishing 
the European Joint Undertaking for ITER and the Development of Fusion Energy, which authorises the use 
of  annual  instalments.  ITER  was  created  to  manage  and  to  encourage  the  exploitation  of  the  ITER 
facilities, to promote public understanding and acceptance of fusion energy, and to undertake any other 
activities  that  are  necessary  to  achieve  its  purpose.  ITER  involves  the  EU,  China,  India,  Russia,  South 
Korea, Japan and the USA. 

106 

 
 
 
 
Copernicus 

Annual accounts of the European Union 2020 

Copernicus is the European Earth observation programme  –  see also  note  2.2. These  commitments are 
made for the period until 2020. Based on Regulation (EU) 2014/377 of the EP and Council of 3 April 2014 
(OJ L 122/44 of 24 April 2014) the Commission  signed delegation agreements with the European  Space 
Agency  (ESA),  EUMETSAT,  Mercator  and  the  European  Centre  for  Medium  Range  weather  forecasts. 
Article 8 of Regulation 2014/377 authorises the use of annual instalments. 

At 31 December 2020, all legal commitments had been entirely covered by budgetary commitments. 

Galileo 

These  are  amounts  committed  to  the  Galileo  programme  developing  a  European  Global  Navigation 
Satellite System – see also note 2.2. These commitments are made for the period until 2020. Based on 
Regulation  (EU)  2013/1285  of  the  EP  and  Council  of  11  December  2013  (OJ  L  347/1  of  20  December 
2013) the Commission signed a delegation agreement with ESA. Article 9 of Regulation (EU) 2013/1285 
authorises the use of annual instalments. 

At 31 December 2020, all legal commitments had been entirely covered by budgetary commitments. 

Fisheries agreements 

These  represent  commitments  entered  into  with  third  countries  for  operations  under  international 
fisheries agreements up to 2026. The commitments made are based on Council decisions for each third 
country (e.g. Agreement between the EU and the Republic of Seychelles and the Implementation Protocol 
thereto;  OJ  L60,  28.2.2020)  and  are  considered  specific  international  treaties  with  multi-annual  rights 
and obligations. 

Operating lease commitments 

Minimum amounts committed to be paid according to the underlying contracts during the remaining term 
of these lease contracts are as follows: 

Buildings 
IT materials and other equipment 
Total 

Minimum lease payments 

< 1 year 
 407 
 15 
 422 

1- 5 years 
 993 
 35 
1 028 

> 5 years 
1 088 
 10 
1 098 

EUR million 

Total 
2 488 
 60 
2 547 

In March 2019, in the context of the United Kingdom’s notification of its intention to withdraw from the 
EU,  and  as  a  result  of  Regulation  (EU)  2018/1718  of  the  European  Parliament  and  of  the  Council  of 
14 November 2018 amending Regulation (EC) No 2004/726, the seat of the European Medicines Agency 
(EMA) was relocated from London to Amsterdam. On 2 July 2019, the Agency reached an agreement with 
its  landlord  and  since  then  has  sublet  its  premises  to  a  subtenant  under  conditions  that  are  consistent 
with  the  ones  of  the  headlease,  including  the  sublease  term  that  extends  until  the  expiry  of  EMA’s 
headlease in June 2039. 

The amounts disclosed in the table above include EUR 378 million still due under the headlease contract. 
An  equal  amount  of  payments  is  expected  to  be  received  by  the  subtenant  under  the  non-cancellable 
sublease. 

Other contractual commitments 

The amounts included under this disclosure correspond to amounts committed to be paid during the term 
of the contracts. The most significant amount included here relates to a building contract (JMO2) of the 
Commission in Luxembourg (EUR 354 million). 

107 

 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

6. 

FINANCIAL RISK MANAGEMENT 

The following disclosures with regard to the financial risk management of the EU relate to: 

  Borrowing  and  lending  activities  for  financial  assistance  carried  out  by  the  Commission  through 

EFSM, BOP, MFA, SURE and Euratom actions; 

 

The  treasury  operations  carried  out  by  the  Commission  in  order  to  implement  the  EU  budget, 
including the receipt of fines; 

  Assets held in funds for budgetary guarantees: the Guarantee Fund for external actions, the EFSI 

Guarantee Fund and the EFSD Guarantee Fund; and 

 

Financial instruments financed by the EU budget. 

6.1.  TYPES OF RISK 

Market  risk  is  the  risk  that  the  fair  value  or  future  cash  flows  of  a  financial  instrument  will  fluctuate, 
because of variations in market prices. Market risk embodies not only the potential for loss, but also the 
potential  for  gain.  It  comprises  currency  risk,  interest  rate  risk  and  other  price  risk  (the  EU  has  no 
significant other price risk). 

  Currency  risk  is  the  risk  that  the  EU's  operations  or  its  investments'  value  will  be  affected  by 
changes  in  exchange  rates.  This  risk  arises  from  the  change  in  price  of  one  currency  against 
another. 

 

Interest  rate  risk  is  the  possibility  of  a  reduction  in  the  value  of  a  security,  especially  a  bond, 
resulting  from  an  increase  in  interest  rates.  In  general,  higher  interest  rates  will  lead  to  lower 
prices of fixed rate bonds, and vice versa. 

Credit risk is the risk of loss due to a debtor's / borrower's non-payment of a loan or other line of credit 
(either  the  principal  or  interest  or  both)  or  other  failure  to  meet  a  contractual  obligation.  The  default 
events include a delay in repayments, restructuring of borrower repayments and bankruptcy. 

Liquidity risk  is the risk that  arises  from  the  difficulty  in selling  an asset; for  example,  the risk  that a 
given  security  or  asset  cannot  be  traded  quickly  enough  in  the  market  to  prevent  a  loss  or  meet  an 
obligation. 

6.2.  RISK MANAGEMENT POLICIES  

Measurement 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  measured  at  amortised  cost.  The  carrying  amount  of  those  financial  assets  and  liabilities  is 
considered as a reasonable approximation of their fair value. 

Borrowing and lending activities for financial assistance 

The  borrowing  and  lending  transactions  are  carried  out  by  the  EU  according  to  the  respective  Council 
Regulations,  Council  and  European  Parliament  Decisions,  and,  if  applicable,  internal  guidelines.  Written 
procedure  manuals  covering  specific  areas  such  as  borrowings  and  loans  have  been  developed  and  are 
used  by  the  relevant  operational  units.  Lending  operations  are  financed  by  ’back-to-back‘  borrowings, 
which thus do not generate open interest rate or currency positions. 

Treasury 

The  rules  and  principles  for  the  management  of  the  Commission's  treasury  operations  are  laid  down  in 
the  Council  Regulation  609/2014  (as  amended  by  Council  Regulation  2016/804)  and  in  the  Financial 
Regulation. 

108 

 
As a result of the above regulations, the following main principles apply: 

Annual accounts of the European Union 2020 

  Own resources are paid by the Member States into accounts opened for this purpose in the name 
of the Commission with the treasury or national central bank. The Commission may draw on the 
above accounts solely to cover its cash requirements. 

  Own  resources  are  paid  by  Member  States  in  their  own  national  currencies,  while  the 

Commission's payments are mostly denominated in EUR. 

  Bank  accounts  opened  in  the  name  of  the  Commission  may  not  be  overdrawn.  This  restriction 
does  not  apply  to  the  Commission's  own  resource  accounts  in  case  of  a  default  on  loans 
contracted  or  guaranteed  pursuant  to  EU  Council  regulations  and  decisions  and  under  certain 
conditions  in  case  the  cash  resource  requirements  are  in  excess  of  the  cash  held  in  those 
accounts. 

 

Funds  held  in  bank  accounts  denominated  in  currencies  other  than  EUR  are  either  used  for 
payments in the same currencies or periodically converted in EUR. 

In  addition  to  the  own  resources  accounts,  other  bank  accounts  are  opened  by  the  Commission,  with 
central banks and commercial banks, for the purpose of executing payments and receiving receipts other 
than the Member State contributions to the budget. 

Treasury  and  payment  operations  are  highly  automated  and  rely  on  modern  information  systems. 
Specific procedures are applied to guarantee system security and to ensure segregation of duties in line 
with the Financial Regulation, the Commission’s internal control standards, and audit principles. 

A  written  set  of  guidelines  and  procedures  regulate the  management of  the  Commission's  treasury  and 
payment operations with the objective of limiting operational and financial risk and ensuring an adequate 
level  of  control.  They  cover  different  areas  of  operation  (for  example:  payment  execution  and  cash 
management,  cashflow  forecasting,  business  continuity,  etc.),  and  compliance  with  the  guidelines  and 
procedures is checked regularly. 

Fines 

Provisionally cashed fines: deposits 

Amounts received before 2010 remain in bank accounts with banks specifically selected for the deposit of 
provisionally  cashed  fines.  The  selection  of  banks  is  conducted  in  compliance  with  tender  procedures 
defined by the Financial Regulation. Placement of funds with specific banks is determined by the internal 
risk management policy defining the credit rating requirements and the amount of funds which could be 
placed  in  proportion  to  the  counterparty  equity.  Financial  and  operational  risks  are  identified  and 
evaluated and compliance with internal policies and procedures is checked regularly. 

Provisionally cashed fines: BUFI portfolio 

Fines  imposed  and  provisionally  cashed  from  2010  onwards  are  invested  in  a  specifically  created 
portfolio,  BUFI.  The  main  objectives  of  the  portfolio  are  the  reduction  of  risks  associated  with  financial 
markets and the equal treatment of all entities by applying a guaranteed return calculated on the same 
basis to the nominal amount of fines. However, the guaranteed return applied to entities fined before the 
entry into force of the new Financial Regulation in August 2018 is floored at zero. The asset management 
for  provisionally  cashed  fines  is  carried  out  by  the  Commission  in  accordance  with  internal  asset 
management guidelines. Procedural manuals covering specific areas such as treasury management have 
been  developed  and  are  used  by  the  relevant  operational  units.  Financial  and  operational  risks  are 
identified and evaluated and compliance with internal guidelines and procedures is checked regularly. 

The  objectives  of  the  asset  management  activities  are  to  invest  the  fines  provisionally  paid  to  the 
Commission in such a way as to: 

 

 

ensure that the funds are easily available when needed, while 

aiming at delivering,  under normal circumstances, a return  which  on  average  is in line with the 
return of the BUFI Benchmark minus costs incurred, while preserving the nominal amount for the 
fines. 

Investments  are  restricted  essentially  to  the  following  categories:  term  deposits  with  Member  States' 
central  banks,  sovereign  debt  agencies,  fully  state-owned  or  state-guaranteed  banks  or  supranational 

109 

 
Annual accounts of the European Union 2020 

institutions,  and  bonds,  bills  and  certificates  of  deposit  issued  by  either  sovereign  or  supranational 
institutions. 

Financial guarantees 

Significant amounts of guarantees issued by financial institutions are held by the Commission in relation 
to  the  fines  it  imposes  on  companies  breaching  EU  competition  rules  –  see  note  2.6.1.3.  These 
guarantees  are  provided  by  fined  companies  as  an  alternative  to  making  provisional  payments.  The 
guarantees  are  managed  in  compliance  with  the  internal  risk  management  policy.  Financial  and 
operational  risks  are  identified  and  evaluated  and  compliance  with  internal  policies  and  procedures  is 
checked regularly. 

Guarantee funds 

The  Commission  is  increasingly  providing  financial  guarantees  to  financial  institutions  as  a  means  of 
efficient budget implementation, thus supporting beneficiaries due to the leverage effect. This use of the 
EU budget aims at maximising the impact of the funds available. The Commission has set up guarantee 
funds to cover the budgetary guarantees given, with the objective of providing a liquidity cushion against 
potential  losses  from  guaranteed  operations.  The  main  guarantee  funds  at  year-end  are  the  Guarantee 
Fund for external actions, the EFSI Guarantee Fund and the EFSD Guarantee Fund. 

Guarantee Fund for external actions 

The rules and principles for the asset management of the Guarantee Fund are laid out in the Convention 
between  the  Commission  and  the  EIB  dated  25  November  1994  and  its  subsequent  amendments.  This 
Guarantee Fund operates only in euros. Management of the assets is based upon the traditional rules of 
prudence adhered to for financial activities. It is required to pay particular attention to reducing the risks 
and to ensuring that the managed assets can be sold or transferred without significant delay, taking into 
account the commitments covered. 

EFSI Guarantee Fund 

The  EFSI  Guarantee  Fund  was  established  by  the  EFSI  Regulation  –  see  note  2.4.1.  The  rules  and 
principles for the asset management of the fund are laid out in the Commission Decision C(2016)165 of 
21 January 2016.  The  fund  is  managed  by  the  Commission,  which  is  authorised  to  invest  the  assets  of 
the  EFSI  Guarantee  Fund  on  the  financial  markets  in  accordance  with  the  principle  of  sound  financial 
management following appropriate prudential rules. The managed assets shall provide sufficient liquidity 
in  relation  to  potential  guarantee  calls,  while  still  aiming  at  optimising  the  return  and  risk  level  that  is 
compatible with maintaining a high degree of security and stability. 

EFSD Guarantee Fund 

EFSD  Guarantee  Fund  has  been  established  pursuant  to  the  EFSD  Regulation  –  see  note  2.4.1.  The 
management  of  the  EFSD  Guarantee  Fund  assets  is  carried  out  by  the  Commission  in  accordance  with 
internal  guidelines  and  asset  management  guidelines  which  are  included  as  Annex  1  to  Commission 
Decision  C(2017)7693  of 22  November  2017.  The  Commission  is  authorised to invest  the  assets  of  the 
EFSD Guarantee Fund on the financial markets following the principle of sound financial management and 
appropriate prudential  rules.  The  assets  are  managed  in  such  a  way  as  to  provide  sufficient  liquidity  in 
relation to the potential guarantee  calls, while  still aiming at optimising the return and risk level that is 
compatible with maintaining a high degree of security and stability. 

Financial instruments programmes 

The implementation  of  the EU  budget has relied for many years now on the use  of financial instrument 
programmes. For more information on the amounts concerned - see note 2.4.1. 

Common to most financial instruments is the fact that the implementation is delegated either to the EIB 
group (including  EIF) or to other  financial institutions  based on an  agreement  between  the  Commission 
and the financial  institution.  Agreements signed with  these  financial institutions include strict conditions 
and obligations on the intermediaries so as to ensure that EU monies are properly managed and reported 
on. Once a financial contribution to one of the instruments has been committed, the funds are transferred 
to a specifically created bank account opened by the financial institution in its name but on behalf of the 
Commission  (i.e.  a  fiduciary  account).  The  financial  institution  may,  depending  on  the  instrument  in 
question,  use  the  funds  on  this  fiduciary  account  to  provide  loans,  issue  debt  instruments,  invest  in 

110 

 
Annual accounts of the European Union 2020 

equity instruments or cover the guarantee calls. Proceeds from financial instruments have, as  a general 
rule, to be reimbursed to the EU budget. 

The  risk  as  regards  these  financial  instruments  is  limited  to  a  ceiling  as  indicated  in  the  underlying 
agreements, which is the budgeted amount foreseen for the instrument. As the Commission often bears 
the  ‘first  loss  piece’  and  since  instruments  are  intended  to  finance  riskier  beneficiaries  (who  have 
difficulties in obtaining funding from commercial lenders), it is therefore likely that some losses to the EU 
budget will occur. 

6.3.  CURRENCY RISK 

Financial instruments exposure of the EU 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 

USD 

GBP 

31.12.2020 
SEK 

DKK 

EUR  Other 

Total 

EUR million 

 593 

 42 

 15 

 14 

18 904 

 20 

19 587 

 (417) 

– 

– 

– 

 616 

– 

 199 

 40 
 21 
1 208 
 22 
 64 
 115 
 334  1 353 

– 
 116 
 178 
 310 

 116 
– 
74 493 
 176 
16 742 
 367 
 557  106 228  2 356  111 137 

 46 
72 233 
14 429 

 9 
 738 
1 589 

– 

– 

– 

– 

 (1) 

 (4) 

 (4) 

 (0) 
 (3) 
 (3) 
 (0) 
 331  1 353 

 (19) 
 (19) 
 291 

 (1)  (32 366) 
 (1)  (32 367) 
 556 

 (19) 
(32 408) 
 (22)  (32 412) 
78 725 

73 861  2 333 

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

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

USD 

GBP 

31.12.2019 
SEK 

DKK 

EUR  Other 

Total 

EUR million 

 577 

 62 

 17 

 (393) 

– 

– 

 32 
 17 
 804 
 30 
 100 
 311 
 332  1 209 

– 
 62 
 319 
 398 

 9 

– 

– 
 93 
 432 
 533 

17 723 

 21 

18 407 

 529 

– 

 137 

 7 
 65 
 233 
22 751 
16 910 
1 673 
57 979  1 934 

 121 
23 974 
19 745 
62 384 

 (0) 

– 

– 

– 

 (10) 

 (2) 

 (12) 

 (1) 
 (5) 
 (1) 
 (5) 
 326  1 208 

 (0) 
 (0) 
 398 

 (1) 
(27 200) 
 (1)  (27 211) 
 532 

 (33) 
(27 241) 
 (35)  (27 254) 
35 130 

30 768  1 898 

111 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

If  the  EUR  had  strengthened  against  other  currencies  by  10%,  then  it  would  have  had  the  following 
impact: 

2020 
2019 

2020 
2019 

Economic result 

USD 
 (13) 
 (14) 

GBP 
 (119) 
 (104) 

DKK 
 (27) 
 (35) 

EUR million 

SEK 
 (49) 
 (48) 

Net assets 

GBP 
 (4) 
 (6) 

DKK 
 (1) 
 (2) 

EUR million 

SEK 
 (1) 
 (1) 

USD 
 (17) 
 (17) 

If the EUR had weakened against these currencies by 10%, then it would have had the following impact: 

2020 
2019 

2020 
2019 

USD 
 16 
 17 

Economic result 

GBP 
 146 
 127 

DKK 
 33 
 42 

EUR million 

SEK 
 60 
 58 

Net assets 

GBP 
 5 
 7 

DKK 
 2 
 2 

EUR million 

SEK 
 2 
 1 

USD 
 21 
 20 

Borrowing and lending activities for financial assistance 

Financial assets and liabilities are currently only in EUR, so the EU has no foreign currency risk. 

Treasury 

Own  resources  paid  by  Member  States  in  currencies  other  than  EUR  are  kept  on  the  own  resources 
accounts, in accordance with Council Regulation 609/2014 (as amended by Council regulation 2016/804). 
They  are  converted  into  EUR  when  they  are  needed  for  the  execution  of  payments.  The  procedures 
applied for the management of these funds are laid down by the above referred regulation.  In a limited 
number of cases, these funds are directly used for payments to be executed in the same currencies. 

A number of accounts in EU currencies other than EUR, and in USD and CHF, are held by the Commission 
with  commercial  banks,  for  the  purpose  of  executing  payments  denominated  in  these  same  currencies. 
These accounts are replenished depending on the amount of payments to be executed, as a consequence 
their balances do not represent exposure to currency risk. 

When  miscellaneous  receipts  (receipts  other  than  own  resources)  are  received  in  currencies  other  than 
EUR,  they  are  either  transferred  to  Commission's  accounts  held  in  the  same  currencies,  if  they  are 
needed  to  cover  the  execution  of  payments,  or  converted  into  EUR  and  transferred  to  accounts  held  in 
EUR.  Imprest  accounts  held  in  currencies  other  than  EUR  are  replenished  depending  on  the  estimated 
short-term local payment needs in the same currencies. Balances on these accounts are kept within their 
respective ceilings. 

112 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fines 

Annual accounts of the European Union 2020 

All  fines  are  imposed,  paid  or  provisionally  covered  in  EUR  and  therefore  do  not  pose  any  foreign 
currency risk. 

Guarantee funds 

Guarantee Fund for external actions 

The financial assets of this fund are in EUR so there is no currency risk. The loans subrogated to the EU 
as  result  of  calls  on the  fund,  following  payment  defaults  by  a  loan  beneficiary,  are  carried  out  in  their 
original  currency  and  therefore  expose  the  EU  to  currency  risk.  There  are  no  activities  to  compensate 
foreign  currency  variations  (‘hedging‘  activities)  due  to  uncertainty  relating  to  the  loans’  repayment 
timing. 

EFSI Guarantee Fund 

The  EFSI  Guarantee  Fund  currently  operates  in  both  EUR  and  USD.  Currency  risk  is  managed  through 
entering into derivative contracts (foreign exchange forward contracts) hedging the market value of the 
USD investments portfolio. The limit for maximum unhedged foreign exchange exposure is set at 1% of 
the  total  portfolio  value  within  the  benchmark  and  annual  strategy  allocations.  Thus,  upward  or 
downward movements in the USD investments' market value above or below the 1% limit would trigger a 
rebalancing  trade  (a  new  forward  contract  with  the  same  or  opposite  direction),  adjusting  or  reversing 
the hedged position accordingly. Readjustment of the hedge may also be prompted by movements of the 
EUR/USD exchange rate. 

The  loans  subrogated  to  the  EU  as  result  of  calls  on  the  fund  following  payment  defaults  by  a  loan 
beneficiary – see note 2.4.3.2 – are carried out in their original currency and therefore expose the EU to 
currency risk. For the subrogated loans, there are no activities to compensate foreign currency variations 
(‘hedging‘ activities) due to uncertainty relating to the loans’ repayment timing. 

EFSD Guarantee Fund 

The EFSD Guarantee Fund currently operates in EUR only, but the asset management guidelines for the 
EFSD Guarantee Fund provide for the possibility to invest in certain non-EUR denominated assets. 

6.4.  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 

 (479) 
 513 
 (447) 
 483 

Sensitivity to interests rate changes of a given portfolio of money market instruments and bonds 
increases with its duration. The duration of the main asset portfolios managed by the Commission is 
described below. 

Borrowing and lending activities for financial assistance 

Due  to  the  nature  of  its  borrowing  and  lending  activities,  the  EU  has  significant  interest-bearing  assets 
and liabilities. However, there is no interest rate risk since the borrowings are offset by equivalent loans 
at the same terms and conditions (back-to-back). 

113 

 
 
 
 
Treasury 

Annual accounts of the European Union 2020 

The  Commission's  treasury  does  not  borrow  money;  so  as  a  consequence,  it  is  not  exposed  to  interest 
rate  risk.  Interest  is  however  calculated  on  balances  held  on  the  different  bank  accounts.  The 
Commission  has  therefore  put  in  place  measures  to  ensure  that  interest  earned  on  its  bank  accounts 
regularly reflects market interest rates, as well as their possible fluctuation. 

Accounts opened with Member States treasuries for own resources receipts are non-interest bearing and 
free of charge. Accounts held with national central banks (own resources and other) may be remunerated 
at the official rates applied by each institution. As some of the remunerations applied to these accounts 
may currently be negative, cash management procedures are in place to minimise balances kept on these 
accounts. Own resources accounts are protected from any impact of negative interest in accordance with 
Council Regulation 609/2014(as amended by Council Regulation 2016/804). 

Overnight  balances  held  on  commercial  bank  accounts  earn  interest  on  a  daily  basis.  This  is  based  on 
variable market rates to which a contractual margin (positive or negative) is applied. The rates applied by 
commercial banks are in general floored at zero for operational balances up to a specified ceiling. 

Fines 

The  provisionally  cashed  fines  are  invested  in  a  portfolio  of  money  market  instruments  and  long-term 
bonds with an average portfolio duration of 2.24 years.  

Guarantee funds 
Guarantee Fund for external actions 

The budget provisioned in the Guarantee Fund is invested in a portfolio of money market instruments and 
long-term bonds with a total average portfolio duration of 3.04 years.  

EFSI Guarantee Fund 

The  budget  provisioned  in  the  EFSI  Guarantee  Fund  is  invested  in  a  portfolio  of  money  market 
instruments and long-term bonds with a total average portfolio duration of 3.19 years. 

EFSD Guarantee Fund 

The  budget  provisioned  in  the  EFSD  Guarantee  Fund  is  invested  in  a  portfolio  of  money  market 
instruments and long-term bonds with a total average portfolio duration of 2.41 years. 

6.5.  CREDIT RISK 

The  amounts  that  represent  the  EU's  exposure  to  credit  risk  at  the  end  of  the  reporting  period  are  the 
carrying amounts of the financial instruments as disclosed in note 2. 

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  Neither past 
due nor 
impaired 
93 308 
59 702 

93 309 
74 493 

 199 

 199 

168 001 
52 684 
23 974 

153 209 
52 683 
9 410 

 137 

 137 

Past due but not impaired 

EUR million 

< 1 year 

1-5 years  > 5 years 

 0 
 505 

– 

 505 
 1 
2 726 

– 

– 
14 030 

– 

14 030 
– 
11 543 

– 

– 
 257 

– 

 257 
– 
 295 

– 

 295 

76 795 

62 231 

2 727 

11 543 

114 

 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

On  10  July  2020  the  Commission  took  the  decision  to  amend  its  internal  provisions  for  the  recovery  of 
amounts  receivable  in  order  to  alleviate  the  impact  of  the  COVID-19  pandemic  on  the  Commission 
debtors.  The  decision  temporarily  extended  the  deadlines  for  payments  for  new  debts  and  provided  for 
the possibility to grant additional time for payment for those debts that were pending at the time. 

Receivables and recoverables which have passed their due date but are not impaired include recoverables 
related to competition fines of EUR 11 295 million (EUR 132 million have become past due in a period of 
less  than  1  year,  EUR 10  931  million  –  between  1  and  5  years  and  EUR 231  million  have  been  due  for 
over  5  years).  These  amounts  are  largely  covered  by  bank  guarantees,  thus  making  the  Commission’s 
exposure  to the  credit  risk  low.  Fined  companies  provide  these  guarantees  as  an  alternative  to  making 
provisional  payments.  In  addition  to  these,  the  first  two  categories  of  receivables  and  recoverables 
contain EUR 1.2 billion receivables and EUR 2.1 billion recoverables that relate  to the  infringement case 
referred to in note 2.6.1.1. 

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

AFS*  Financial 
assets at 
FVSD** 

31.12.2020 

Loans  Receivables 
and 
recoverables 

EUR million 

Cash 

Total 

Counterparties with external 
credit rating 
Prime and high grade 
Upper medium grade 
Lower medium grade 
Non-investment grade 

9 005 
3 415 
2 133 
 310 
14 862 

Counterparties without external 
credit rating 
Group 1 
Group 2 

– 
– 
– 
14 862 

Total 

 199 
– 
– 
– 
 199 

– 
– 
– 
 199 

2 040 
35 040 
48 139 
7 964 
93 182 

 126 
– 
 126 
93 309 

52 817 
1 535 
1 886 
 142 

13 896 
1 011 
1 651 
 165 
56 380  16 723 

77 956 
41 001 
53 809 
8 580 
181 347 

3 318 
 4 
3 322 

 19 
– 
 19 
59 702  16 742 

3 463 
 4 
3 466 
184 814 

AFS*  Financial 
assets at 
FVSD** 

31.12.2019 

Loans  Receivables 
and 
recoverables 

EUR million 

Cash 

Total 

Counterparties with external 
credit rating 
Prime and high grade 
Upper medium grade 
Lower medium grade 
Non-investment grade 

8 848 
3 588 
2 298 
 264 
14 998 

Counterparties without external 
credit rating 
Group 1 
Group 2 

– 
– 
– 
14 998 

Total 

 137 
– 
– 
– 
 137 

– 
– 
– 
 137 

 32 
23 013 
24 711 
4 855 
52 610 

 73 
– 
 73 
52 683 

3 632 
1 444 
1 867 
 478 

15 452 
3 688 
 322 
 262 
7 422  19 724 

1 987 
 21 
 2 
– 
 21 
1 989 
9 410  19 745 

28 101 
31 734 
29 198 
5 858 
94 891 

2 082 
 2 
2 083 
96 974 

*   Available for sale financial assets (excluding investments in money market funds and equity instruments). 
**  Financial assets at fair value through surplus or deficit. 

Not  included  in the  above  table  are  available  for  sale  financial  assets in  the  form  of  equity  instruments 
without  external  credit  rating.  The  four  risk  categories  mentioned  above  are  in  principle  based  on  the 
rating categories of external rating agencies and correspond to: 

115 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

 

Prime and high grade: Moody P-1, Aaa – Aa3; S&P A-1+, A-1, AAA – AA -; Fitch F1+, F1, AAA – 
AA- and equivalent 

  Upper medium grade: Moody P-2, A1 – A3; S&P A-2, A+ - A-; Fitch F2, A+ - A- and equivalent 

 

Lower medium grade: Moody P-3, Baa1 – Baa3, S&P A-3, BBB+ - BBB-; Fitch F-3, BBBB+ - BBB- 
and equivalent 

  Non-investment grade: Moody not prime, Ba1 – C; S&P B, C, BB+ - D; Fitch B, C, BB+ - D and 

equivalent 

The  EU  uses  these  external  agencies  rating  categories  as  a  reference  point  notably  for  financial 
instruments  and  commercial  banks,  but  may,  after  making  its  own  analysis  of  individual  cases,  keep 
amounts  in  one  of  the  above  risk  categories  even  though  one  or  more  of  the  above  mentioned  rating 
agencies  may  have  downgraded  the  corresponding  counterparty.  As  regards  non-rated  counterparties, 
group 1 relates to debtors without defaults in the past and group 2 relates to debtors with defaults in the 
past. 

The  amounts  displayed  above  under  loans  categorised  in  non-investment  grade  relate  primarily  to 
financial  assistance  loans  disbursed  by  the  Commission  to  partner  countries  in  financial  difficulties.  The 
amount under receivables and recoverables relates to recoverables against certain Members States based 
on  own  resources  regulations  or  other  legal  basis.  The  amount  under  cash  relates  mainly  to  own 
resources bank accounts opened in the treasury or in the central banks of certain Member States to hold 
the own resources contributions as foreseen in the above referred regulation. The Commission may draw 
on these accounts solely to cover cash requirements for the implementation of the budget. 

Borrowing and lending activities for financial assistance 

Exposure  to  credit  risk  is  managed  firstly  by  obtaining  state  guarantees  in  the  case  of  Euratom,  then 
through the Guarantee Fund for external actions (MFA & Euratom), then by the possibility of drawing the 
necessary funds from the Commission's own resources accounts with the Member States and ultimately 
through the EU budget. 

The Own Resources legislation fixes the ceiling for own resources payments at 1.20% of Member States' 
GNI and during 2020 1.03% was actually used to cover payment appropriations. This means that at 31 
December 2020 there existed an available margin of 0.17% to cover these guarantees. To this end, the 
EU is entitled to call upon Member States to ensure compliance with the EU's legal obligation towards its 
lenders. 

Loans provided to Member States under the SURE instrument are underpinned by a system of voluntary 
guarantees  from  Member  States,  amounting  to  25%  of  the  maximum  ceiling  available  for  the  related 
financial  assistance.  Before  calling  on  guarantees  provided  by  the  Member  States,  the  Commission  is 
expected to examine the scope for drawing on the margin available under the own resources ceiling for 
payments  appropriation  to  the  extent  that  it  is  deemed  sustainable  by  the  Commission,  having  regard, 
inter alia, to the total contingent liabilities of the Union and the sustainability of the general budget of the 
Union.  Such  examination  shall  not  affect  the  irrevocable,  unconditional  and  on-demand  nature  of  the 
guarantees provided. 

Treasury 

Most of the Commission's treasury resources  are  kept, in accordance  with Council Regulation 609/2014 
(as  amended  by  Council  Regulation  804/2016)  on  own  resources,  in  the  accounts  opened  by  Member 
States  for  the  payment  of  their  contributions  (own  resources).  All  such  accounts  are  held  with  Member 
States'  treasuries  or  national  central  banks.  These  institutions  carry  the  lowest  credit  (or  counterparty) 
risk  for  the  Commission  as  the  exposure  is  with  its  Member  States.  For  the  part  of  the  Commission's 
treasury  resources  kept  with  commercial  banks,  in  order  to  cover  the  execution  of  payments, 
replenishment  of  these  accounts  is  made  on  a  just-in-time  basis  and  is  automatically  managed  by  the 
treasury cash management system. Minimum cash levels, which take into account the average amount of 
daily  payments  executed  from  it,  are  kept  on  each  account.  As  a  consequence  the  total  amount  kept 
overnight  on  these  accounts  remains  constantly  at  low  levels  (overall  less  than  EUR  54  million  on 
average,  spread  over  around  25  accounts)  and  so  it  is  ensured  that  the  Commission's  risk  exposure  is 
limited.  These  amounts  should  be  viewed  with  regard  to  the  daily  overall  treasury  balances  which 
fluctuated  in  2020  between  EUR  2  billion  and  EUR  37  billion,  and  with  an  overall  amount  of  payments 
made from Commission accounts in 2020 that exceeded EUR 163 billion. 

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In  addition,  specific  guidelines  are  applied  for  the  selection  of  commercial  banks  in  order  to  further 
minimise counterparty risk to which the Commission is exposed: 

  All  commercial  banks  are  selected  by  call  for  tenders.  The  minimum  long-term  credit  rating 
required for admission to the tendering procedures is S&P A- or equivalent. A lower level may be 
accepted in specific and duly justified circumstances. 

The credit ratings of the commercial banks where the Commission has accounts are monitored on 
a regular basis.  

In delegations outside the EU, imprest accounts are held with local banks selected by a simplified 
tendering  procedure.  Rating  requirements  depend  on  the  local  situation  and  may  significantly 
differ  from  one  country  to  another.  In  order  to  limit  risk  exposure,  balances  on  these  accounts 
are kept at the lowest possible levels (taking into account operational needs), they are regularly 
replenished, and the applied ceilings are reviewed on a yearly basis. 

 

 

Fines 

Provisionally cashed fines: deposits 

Banks holding deposits for the fines provisionally cashed before 2010 are selected by tender procedure in 
compliance with the risk management policy which defines the credit rating requirements and the amount 
of funds which could be placed in proportion to the counterparty equity. 

For commercial banks that have been specifically selected for the deposit of provisionally cashed fines, a 
minimum long-term rating A- (S&P or equivalent) with two rating agencies is required as a general rule. 
Specific  measures  are  applied  in  case  banks  in  this  group  are  subject  to  downgrade.  In  addition,  the 
amount  deposited  with  each  bank  is  limited  to  a  certain  percentage  of  its  own  funds,  which  varies 
depending on the rating level of each institution. The calculation of such limits also takes into account the 
amount of outstanding guarantees issued to the Commission by the same institution. The compliance of 
outstanding deposits with the applicable policy requirements is reviewed regularly. 

Provisionally cashed fines: BUFI portfolio 

For sovereign debt investments from  provisionally  cashed  fines imposed  as from  2010, the Commission 
takes  on  the  exposure  to  credit  risk.  The  highest  concentration  of  exposure  is  towards  Spain,  which 
represents  17%  of  the  portfolio.  The  five  countries  with  the  highest  exposure  (Spain,  France,  Italy, 
Germany  and  Belgium)  represent  altogether  45%  of  the  investment  portfolio.  The  weighted  average 
credit rating of the portfolio is A (S&P or equivalent). 

Financial guarantees received 

The risk management policy applied for the acceptance of such guarantees ensures a high credit quality 
for  the  Commission.  The  policy  includes  defining  a  maximum  credit  exposure  towards  a  particular 
financial sector entity based on its credit rating and the level of an entity’s capital as accounted for in its 
IFRS  financial  statements.  The  compliance  of  the  outstanding  guarantees  with  the  applicable  policy 
requirements is reviewed regularly. 

Guarantee funds 
Guarantee Fund for external actions 

The  asset  management  guidelines  and/or  investment  strategy  define  certain  limits  and  restrictions  in 
order  to  limit  the  exposure  to  credit  risk  of  the  portfolio.  Such  limits  and  restrictions  include  eligibility 
criteria, absolute credit limits in nominal terms depending on issuer category, relative concentration limits 
depending  on  issuer  category  and  concentration  limits  per  issue.  All  investments  are  rated  at  least  as 
investment grade. 

EFSI Guarantee Fund 

The asset management guidelines, risk and investment strategies define certain limits and restrictions in 
order to limit the exposure to credit risk of the portfolio which is limited to investment grade, except for 
EU  Member  States  exposure.  The  weighted  average  credit  rating  of  the  portfolio  is  BBB+  (S&P  or 
equivalent). 

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Annual accounts of the European Union 2020 

As the sole counterparty for all outstanding currency forwards as of 31 December 2020 is the Banque de 
France, no credit enhancements,  such  as collateral, netting agreements, or guarantees are  put in  place 
as of this date. The maximum exposure to credit risk for foreign exchange derivatives having a positive 
fair value at the end of the reporting period is equal to the carrying amount on the balance sheet. 

EFSD Guarantee Fund 

The asset management guidelines, risk and investment strategies define certain limits and restrictions in 
order to limit the exposure to credit risk of the portfolio, which is limited to investment grade, except for 
EU  Member  States  exposure.  The  weighted  average  credit  rating  of  the  portfolio  is  BBB+  (S&P  or 
equivalent). 

6.6.  LIQUIDITY RISK 

Maturity analysis of financial liabilities by remaining contractual maturity 

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

< 1 year 
(10 410) 
(32 408) 
 (90) 
 (149) 
(43 057) 
(1 273) 
(27 241) 
 (20) 
 (149) 
(28 684) 

1-5 years 
(20 230) 
– 
– 
 (665) 
(20 895) 
(19 312) 
– 
– 
 (640) 
(19 952) 

> 5 years 
(62 553) 
– 
– 
 (947) 
(63 500) 
(31 978) 
– 
– 
(1 132) 
(33 110) 

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

1-5 years 
 (4) 
– 
 (4) 
 (2) 
– 
 (2) 

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

Borrowing and lending activities for financial assistance 

EUR million 
Total 

(93 192) 
(32 408) 
 (90) 
(1 761) 
(127 451) 
(52 564) 
(27 241) 
 (20) 
(1 921) 
(81 746) 

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

The  liquidity  risk  that  arises  from  borrowings  is  generally  offset  by  equivalent  loans  in  terms  and 
conditions  (back-to-back  operations).  For  MFA  and  Euratom,  the  Guarantee  Fund  for  external  actions 
serves as a liquidity reserve (or safety net) in case of payment default and payment delays of borrowers. 
For the SURE instrument the loans are guaranteed by a system of the irrevocable, unconditional and on-
demand voluntary guarantees from Member States amounting to 25% of the maximum ceiling available 
for the financial assistance. For BOP, the Council Regulation 2009/431 provides for a procedure allowing 
sufficient  time  to  mobilise  funds  through  the  Commission's  own  resources  accounts  with  the  Member 
States. For EFSM, the Council Regulation 2010/407 provides for a similar procedure. 

Treasury 

EU  budget  principles  ensure  that  overall  cash  resources  for  a  given  year  are  always  sufficient  for  the 
execution of all payments. In fact, the total Member States contributions together with the miscellaneous 
revenue  equal  the  amount  of  payment  appropriations  for  the  budgetary  year.  Member  States’ 
contributions, however, are received in twelve monthly instalments throughout the year and based on the 
adopted  budget,  while  payments  are  subject  to  operational  needs.  Moreover,  in  accordance  with  the 
Council  Regulation  609/2014  (on  the  methods  and  procedure  for  making  available  own  resources, 
amended  by  Council  Regulation  804/2016),  Member  States  contributions  relating  to  amending  budgets 
approved in a given month (N) only become available either on the first working day of the month N+1 
(if approved before the 16th of the given month) or on the first working day of month N+2 (if approved 

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on  the  16th  or  later  of  that  given  month),  while  the  related  payment  appropriations  are  immediately 
available. 

In  order  to  ensure  that  available  treasury  resources  are  always  sufficient  to  cover  the  payments  to  be 
executed  in  any  given  month,  procedures  regarding  regular  cash  forecasting  are  in  place,  and  own 
resources or additional funding can be called up in advance from Member States if needed, up to certain 
limits and under certain conditions. Operational needs and overall budgetary restrictions in recent years 
have  resulted  in  the  need  for  increased  monitoring  of  the  rhythm  of  payments  during  the  year.  In 
addition  to  the  above,  in  the  context  of  the  Commission's  daily  treasury  operations,  automated  cash 
management tools ensure that sufficient liquidity is available on each of the Commission's bank accounts, 
on a daily basis. 

Fines 

The BUFI fund where provisionally paid fines are invested is managed according to the principle that the 
assets shall have a sufficient degree of liquidity and mobilisation in relation to the relevant commitments. 
The  portfolio  is  composed  of  mostly  highly  liquid  securities  that  can  be  sold  to  meet  short-term  cash 
outflows. In addition, the share of cash, cash equivalents and securities maturing within 1 year is 34%. 

Guarantee funds 

Guarantee Fund for external actions 

The fund is managed according to the principle that the assets shall have a sufficient degree of liquidity 
and  mobilisation  in  relation  to  the  relevant  commitments.  The  fund  therefore  maintains  a  sufficient 
amount of monetary assets to cover short-term cash outflows. The share of cash, cash equivalents and 
securities maturing within 1 year is 15%. 

EFSI Guarantee Fund 

The  EFSI  Guarantee  Fund  is  managed  according  to  the  principle  that  the  assets  shall  have  a  sufficient 
degree of liquidity and mobilisation in relation to the relevant commitments. The portfolio is composed of 
liquid  assets  that  can  be  sold  to  meet  short-term  cash  outflows  if  necessary.  In  addition  the  share  of 
cash, cash equivalents and securities maturing within 1 year is 30%. 

The settlement of derivative contracts is gross and is based on their contractual maturity. Obligations are 
honoured via sales of USD-denominated assets and/or a swap transaction, whereby it is possible that a 
cash outflow arises due to foreign exchange differences. 

No  liquidity  management  is  necessary  with  regard  to  collateral  /  margin  requirements  as  the  current 
hedging counterparty  accepts to operate with the Commission  without  any requirements for collateral / 
margin calls. 

EFSD Guarantee Fund 

The  EFSD  Guarantee  Fund  is  managed  according  to  the  principle  that  the  assets  shall  have  a  sufficient 
degree of liquidity and mobilisation in relation to the relevant commitments. 

The portfolio is composed of liquid assets that can be sold to meet short-term cash outflows, if necessary. 
In addition the share of cash, cash equivalents and securities maturing within 1 year is 46%. 

Other financial instruments – derivative financial liabilities 

The  EU  holds  a  derivative  contract  (foreign  exchange  option)  covering  the  devaluation  of  foreign 
exchange currency related to loans given by financial institutions under Eastern Partnership SME Finance 
Facility programme – see note 2.11.2. Moreover, the EU guarantee on equity portfolios held by the EIB 
Group  led  to  a  financial  obligation  to  cover  changes  in  the  value  or  impairments  of  underlying 
investments. As for the other financial instruments financed by the EU Budget, the amount for which the 
EU  is  liable  under  these  instruments  cannot  exceed  the  amount  committed,  being  the  liquidity  risk 
mitigated by that fact. 

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7.  RELATED PARTY DISCLOSURES 

7.1.  RELATED PARTIES 

The  related  parties  of  the  EU  are  the  EU  consolidated  entities,  associates  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. 

7.2.  KEY MANAGEMENT ENTITLEMENTS 

For the purposes of presenting information on related party transactions concerning the key management 
personnel of the EU, such persons are shown here under five categories: 

Category  1:  the  Presidents  of  the  European  Council,  the  Commission  and  the  Court  of  Justice  of  the 
European Union 

Category 2: the Vice-president of the Commission and High Representative of the EU for Foreign Affairs 
and Security Policy and the other Vice-presidents of the Commission 

Category  3:  the  Secretary-General  of  the  Council,  the  Members  of  the  Commission,  the  Judges  and 
Advocates  General  of  the  Court  of  Justice  of  the  European  Union,  the  President  and  Members  of  the 
General Court, the Ombudsman and the European Data Protection Supervisor 

Category 4: the President and Members of the European Court of Auditors 

Category 5: the highest-ranking civil servants of the Institutions and Agencies 

A  summary  of  their  entitlements  is  given  below  –  further  information  can  be  found  in  the  Staff 
Regulations  published  on  the  Europa  website  which  is  the  official  document  describing  the  rights  and 
obligations of all officials of the EU. Key management personnel have not received any preferential loans 
from the EU. 

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Annual accounts of the European Union 2020 

KEY MANAGEMENT FINANCIAL ENTITLEMENTS  

Entitlement (per employee) 

Category 1 

Category 2 

Category 3 

Category 4 

EUR 
Category 5 

Basic salary (per month) 

28 660.63 

25 960.71 - 

20 768.57 - 

22 430.06 - 

13 205.77 - 

26 999.15 

23 364.64 

23 883.86 

20 768.57 

Residential/Expatriation 
allowance  

Family allowances: 

Household (% salary) 

Dependent child 

Pre-school 

Education, or 

Education outside place of work 

Presiding judges allowance 

15% 

15% 

15% 

15% 

0-4%-16% 

2% + 192.78  2% + 192.78  2% + 192.78  2% + 192.78  2% + 192.78 

 421.24 

 102.90 

 285.81 

 571.62 

N/A 

 421.24 

 102.90 

 285.81 

 571.62 

N/A 

 421.24 

 102.90 

 285.81 

 571.62 

 655.76 

 421.24 

 102.90 

 285.81 

 571.62 

N/A 

 421.24 

 102.90 

 285.81 

 571.62 

N/A 

Representation allowance 

1 553.16 

 998.20 

 655.76 

N/A 

N/A 

Annual travel costs 

N/A 

N/A 

N/A 

N/A 

Reimbursed 

Transfers to Member State: 

Education allowance* 

% of salary* 

Yes 

5% 

Yes 

5% 

Yes 

5% 

Yes 

5% 

Yes 

5% 

% of salary with no cc 

max 25% 

max 25% 

max 25% 

max 25% 

max 25% 

Representation expenses 

Reimbursed 

Reimbursed 

Reimbursed 

N/A 

N/A 

Taking up duty: 

Installation expenses 

57 321.26 

51 921.41 

41 537.13 

44 860.11 

- 53 998.29 

- 46 729.28 

- 47 767.72 

Reimbursed 

Family travel expenses 

Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

Moving expenses 

Leaving office: 

Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

Resettlement expenses 

28 660.63 

25 960.71 - 

20 768.57 - 

22 430.06 - 

26 999.15 

23 364.64 

23 883.86 

Reimbursed 

Family travel expenses 

Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

Moving expenses 

Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

Transition (% salary)** 

40% - 65% 

40% - 65% 

40% - 65% 

40% - 65% 

N/A 

Sickness insurance 

Covered 

Covered 

Covered 

Covered 

Covered 

Pension (% salary, before tax) 

Max 70% 

Max 70% 

Max 70% 

Max 70% 

Max 70% 

Deductions: 

Tax on salary 

Sickness insurance (% salary) 

Special levy on salary 

Pension deduction 

Number of persons at year-end 

* With correction coefficient (‘CC’) applied. 

** Paid for the first 3 years following departure. 

8% - 45% 

8% - 45% 

8% - 45% 

8% - 45% 

8% - 45% 

1.7% 

7% 

N/A 

3 

1.7% 

7% 

N/A 

8 

1.7% 

7% 

N/A 

93 

1.7% 

7% 

N/A 

28 

1.7% 

6-7% 

10.1% 

112 

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Annual accounts of the European Union 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. 

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9. 

SCOPE OF CONSOLIDATION 

A. CONTROLLED ENTITIES (52) 
1. Institutions and consultative bodies (11) 
European Parliament 
European Council 
European Commission 
European Court of Auditors 
Court of Justice of the European Union 
European External Action Service 

2. EU Agencies (39) 
2.1. Executive Agencies (6) 
Education, Audiovisual and Culture Executive 
Agency (EACEA) 
Consumers, Health, Agriculture and Food Executive 
Agency (CHAFEA) 
Research Executive Agency (REA) 

2.2. Decentralised Agencies (33) 
European Maritime Safety Agency (EMSA) 
European Medicines Agency (EMA) 
European Chemicals Agency (ECHA) 
European Institute for Gender Equality (EIGE) 
European Environment Agency (EEA) 
European Banking Authority (EBA) 
European Asylum Support Office (EASO) 
European Border and Coast Guard Agency 
(FRONTEX) 
European Union Agency for Law Enforcement 
Training (CEPOL) 
European Global Navigation Satellite Systems 
Agency (GSA) 
European Union Agency for Criminal Justice 
Cooperation (Eurojust) 
European Agency for Safety and Health at Work 
(EU-OSHA) 
European Centre for Disease Prevention and Control 
(ECDC) 
European Centre for the Development of Vocational 
Training (CEDEFOP) 
European Union Agency for the Cooperation of 
Energy Regulators (ACER) 
Agency for Support for the Body of European 
Regulators for Electronic Communications (BEREC 
Office) 
European Union Agency for Cybersecurity (ENISA) 

European Data Protection Supervisor 
European Economic and Social Committee 
European Ombudsman 
European Committee of the Regions 
Council of the European Union 

Executive Agency for Small and Medium-sized 
Enterprises (EASME) 
European Research Council Executive Agency 
(ERCEA) 
Innovation and Networks Executive Agency (INEA) 

European Food Safety Authority (EFSA) 
European Union Agency for Railways (RAIL) 
Community Plant Variety Office (CPVO) 
European Fisheries Control Agency (EFCA) 
European Union Intellectual Property Office (EUIPO) 
European Union Aviation Safety Agency (EASA) 
European Securities and Markets Authority (ESMA) 

European Training Foundation (ETF) 

European Foundation for the Improvement of Living 
and Working Conditions (Eurofound) 
European Monitoring Centre for Drugs and Drug 
Addiction (EMCDDA) 
European Union Agency for Law Enforcement 
Cooperation (EUROPOL) 
European Union Agency for Fundamental Rights 
(FRA) 
European Insurance and Occupational Pensions 
Authority (EIOPA) 
Translation Centre for the Bodies of the European 
Union (CdT) 
European Joint Undertaking for ITER and the 
Development of Fusion Energy (Fusion for Energy) 
European Union Agency for the Operational 
Management of Large-Scale IT Systems in the Area 
of Freedom, Security and Justice (eu-LISA) 

3. Other controlled entities (2) 
European Coal and Steel Community in Liquidation 
(ECSC i.L.) 

European Institute of Innovation and Technology 
(EIT) 

B. ASSOCIATES (1) 
European Investment Fund (EIF) 

123 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MINOR ENTITIES 

Annual accounts of the European Union 2020 

The entities listed below have not been consolidated using the equity method in the 2020 EU consolidated 
financial statements on the basis of immateriality: 

Bio Based Industries Joint Undertaking (BBI) 

BBI is a Public-Private Partnership (PPP) between the EU and the Bio-based Industries Consortium (BIC). 
The  objectives  of  the  BBI  are  to  contribute  to  a  more  resource  efficient  and  sustainable  low-carbon 
economy and to increasing economic growth and employment by developing sustainable and competitive 
bio-based industries in Europe. 

Clean Sky Joint Undertaking (Clean Sky) 

Clean  Sky  is  the  largest  European  research  programme  developing  innovative,  cutting-edge  technology 
aimed at reducing CO2, gas emissions and noise levels produced by aircraft. Funded by the EU’s Horizon 
2020  programme,  Clean  Sky  contributes  to  strengthening  European  aero-industry  collaboration, global 
leadership and competitiveness. 

Innovative Medicines Initiative Joint Undertaking (IMI) 

IMI, a partnership between the European Union and the European pharmaceutical industry, is the world’s 
biggest  public  private  partnership  in  life  sciences  and  working  to  improve  health  by  speeding  up  the 
development  of,  and  patient  access  to,  innovative  medicines,  particularly  in  areas  where  there  is  an 
unmet medical or social need. 

Electronic Components and Systems for European Leadership Joint Undertaking (ECSEL) 

ECSEL,  a  PPP  in  electronic  components  and  systems,  funds  research,  development  and  innovation 
projects  for  world-class  expertise  in  electronic  components  and  systems,  thus  contributing  to  the 
development  of  a  strong  and  globally  competitive  electronics  components  and  systems  industry  in  the 
European Union. 

Fuel Cells Hydrogen Joint Undertaking (FCH) 

FCH is a PPP supporting  research, technological development and demonstration (RTD)  activities in fuel 
cell and hydrogen energy technologies in Europe. Its aim is to accelerate the market introduction of these 
technologies, realising their potential as an instrument in achieving a carbon-lean energy system. 

Single European Sky ATM Research Joint Undertaking (SESAR) 

SESAR is a PPP responsible for the modernisation of the European air traffic management (ATM) system 
by coordinating and concentrating all ATM relevant research and innovation efforts in the EU. 

Shift2Rail Joint Undertaking (Shift2Rail) 

Shift2Rail  is  the  first  European  rail  joint  technology  initiative  to  seek  focused  research  and  innovation 
(R&I) and market-driven solutions by accelerating the integration of new and advanced technologies into 
innovative rail product solutions.  

EuroHPC Joint Undertaking (EuroHPC) 

The  EuroHPC  Joint  Undertaking  is  a  joint  initiative  between  the  EU,  European  countries  and  private 
partners  to  develop  a  world-class  supercomputing  infrastructure  and  make  Europe  a  leader  in  high-
performance computing (HPC).  

The annual accounts of the above entities are publicly available on their respective websites. 

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Annual accounts of the European Union 2020 

EUROPEAN UNION 
FINANCIAL YEAR 2020 

BUDGETARY IMPLEMENTATION REPORTS 
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.

125 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

CONTENTS 

EU BUDGET RESULT ....................................................................................... 127 

STATEMENTS OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS .................... 128 

NOTES TO THE BUDGETARY IMPLEMENTATION REPORTS ................................... 130 

1. 

THE EU BUDGET FRAMEWORK ................................................................. 130 

1.1.  MULTIANNUAL FINANCIAL FRAMEWORK 2014-2020 ............................. 130 

1.2.  MFF DETAILED HEADINGS (PROGRAMMES) ......................................... 131 

1.3. 

1.4. 

1.5. 

1.6. 

ANNUAL BUDGET ............................................................................. 131 

REVENUE ........................................................................................ 134 

CALCULATION OF THE BUDGET RESULT .............................................. 135 

RECONCILIATION OF ECONOMIC RESULT WITH BUDGET RESULT .......... 137 

2. 

IMPLEMENTATION OF THE 2020 EU BUDGET ............................................. 139 

2.1. 

2.2. 

REVENUE ........................................................................................ 139 

EXPENDITURE ................................................................................. 139 

3. 

IMPLEMENTATION OF EU BUDGET REVENUE ............................................. 141 

3.1. 

SUMMARY OF THE IMPLEMENTATION OF EU BUDGET REVENUE ............. 141 

4. 

IMPLEMENTATION OF EU BUDGET EXPENDITURE ...................................... 142 

4.1.  MFF: BREAKDOWN & CHANGES IN COMMITMENT & PAYMENT 
APPROPRIATIONS ....................................................................................... 142 

4.2.  MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS ................. 143 

4.3.  MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ....................... 144 

4.4.  MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) .................. 145 

4.5.  MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN ..................... 146 

4.6.  MFF: OUTSTANDING COMMITMENTS BY APPROPRIATIONS TYPE ............ 147 

4.7. 

4.8. 

4.9. 

DETAILED MFF: BREAKDOWN AND CHANGES IN COMMITMENT AND 
PAYMENT APPROPRIATIONS .............................................................. 148 

DETAILED MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS .. 154 

DETAILED MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ........ 160 

4.10.  DETAILED MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) ... 166 

4.11.  DETAILED MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN ...... 171 

4.12.  DETAILED MFF: OUTSTANDING COMMITMENTS BY APPROPRIATIONS      

TYPE .............................................................................................. 175 

5. 

IMPLEMENTATION OF THE BUDGET BY INSTITUTION ................................. 180 

5.1. 

5.2. 

5.3. 

IMPLEMENTATION OF BUDGET REVENUE ............................................ 180 

IMPLEMENTATION OF COMMITMENT APPROPRIATIONS......................... 181 

IMPLEMENTATION OF PAYMENT APPROPRIATIONS ............................... 182 

6. 

IMPLEMENTATION OF THE AGENCIES' BUDGET ......................................... 183 

6.1. 

6.2. 

BUDGET REVENUE ........................................................................... 183 

COMMITMENT AND PAYMENT APPROPRIATIONS BY AGENCY ................. 184 

126 

 
 
 
Annual accounts of the European Union 2020 

EU BUDGET RESULT 

Note 

a 

b 

c 

d 

e 

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) 

f 

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) 

1 768 

 75 

(1 736) 

9 092 

7 356 

 4 

3 217 

The budget result of the EU is returned to the Member States in 2021 through deduction of their amounts 
due.  It  is  calculated  in  accordance  with  Article 1(1)  of  Council  Regulation  No 608/2014  laying  down 
implementing  measures  for  the  system  of  own  resources.  More  information  can  be  found  under  section 
1.5 Calculation of the budget result. 

a.  Revenue  for  the  financial  year:  table  3.1  “Summary  of  the  implementation  of  EU  Budget 

Revenue”, column 8 “Total Revenue”. 

b.  Payments  against  current  year  appropriations:  table  4.3  “MFF  –  Implementation  of  Payment 
appropriations”, column 2 “Payments made from adopted budget and column 4 “Payments made 
from assigned revenue”. 

c.  Payment appropriations carried over to year N+1: table 4.3 “MFF  –  Implementation of Payment 

appropriations”, column 7 automatic carry-overs plus column 8 carry-over by decision. 

d.  Cancellation  of  unused  payment  appropriations  carried  over  from  year  N-1:  takes  into  account 
the amount of payment appropriations carried over (automatically and on decision) at the end of 
previous  year  and  the  current  year’s  “Payments  made  from  carryovers”  as  in  column  3  of  table 
4.3 “MFF – Implementation of Payment appropriations”. 

e.  Evolution  of  the  total  assigned  revenue  appropriations  at  year-end:  calculates  the  difference  of 
the  amount  of  assigned  revenue  appropriations  at  the  end  of  previous  year  (plus)  and  the 
amount  of  assigned  revenue  appropriations  at  the  end  of  the  current  year  (as  in  column  9  of 
table 4.3 “MFF – Implementation of Payment appropriations” - minus) to obtain the net variation 
of assigned revenue in the current year. 

f.  Exchange rate differences include realised and non-realised exchange rate differences. 

127 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

STATEMENTS OF COMPARISON OF BUDGET AND ACTUAL 
AMOUNTS 

Budget revenue 

1  Own resources 

  11 - Sugar levies 

  12 - Customs duties 

  13 - VAT 

  14 - GNI 

  15 - Correction of budgetary imbalances 

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

3  Surpluses, balances and adjustments 

4 

5 

6 

Revenue accruing from persons working with the 
institutions and other union bodies 

Revenue accruing from the administrative operation of the 
institutions 

Contributions and refunds in connection with Union 
agreements and programmes 

7  Interests on late payments and fines 

8  Borrowing and lending operations 

9  Miscellaneous revenue 

  Total 

EUR million 

Initial 
budget 
adopted 

Final 
adopted 
budget 

Entitlements 
established 

Revenue 

151 638 

159 832 

162 382 

160 141 

– 

22 157 

18 945 

– 

18 507 

17 344 

 0 

22 107 

17 191 

 0 

19 867 

17 191 

110 536 

123 980 

122 944 

122 944 

– 

– 

– 

– 

– 

 147 

 (8) 

 147 

 (8) 

2 102 

3 173 

3 167 

1 651 

1 651 

1 629 

1 615 

 15 

 15 

 645 

 592 

 130 

 115 

 2 

 15 

 130 

 361 

 2 

 15 

8 866 

8 156 

17 027 

 629 

– 

 12 

– 

 6 

153 566 

164 108 

193 735 

174 306 

Budget expenditure: commitments by multiannual financial 
framework (MFF) heading 

MFF Heading 

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) 

  Total 

Initial 
adopted 
budget 

Final 
adopted 
budget 

Total 
appropriations 
available 

EUR million 

Commitments 
made 

83 931 

83 918 

25 285 

25 273 

58 646 

58 646 

59 907 

59 956 

43 410 

43 459 

3 729 

7 152 

10 262 

11 350 

10 272 

10 271 

– 

– 

– 

– 

 588 

1 236 

– 

– 

90 870 

30 287 

60 582 

62 730 

44 855 

8 152 

12 240 

11 108 

4 667 

– 

– 

1 306 

1 337 

89 563 

29 315 

60 248 

60 823 

44 315 

7 702 

11 950 

10 548 

4 319 

– 

– 

1 108 

 5 

168 688 

173 884 

187 742 

181 699 

128 

  of which: Administrative expenditure of the institutions 

4 226 

4 225 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

Budget expenditure: payments by multiannual financial 
framework (MFF) heading 

MFF Heading 

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 

of which: Administrative expenditure of the 
institutions 
6  Compensations 

8 

Negative reserve and deficit carried over from the 
previous financial year  

9  Special Instruments 

O  Innovation Fund (IF) 

  Total 

Initial 
adopted 
budget 

Final 
adopted 
budget 

Total 
appropriations 
available 

72 354 

22 308 

50 046 

57 904 

77 278 

21 753 

55 525 

58 772 

88 334 

28 726 

59 607 

61 448 

EUR million 

Payments 
made 

83 541 

24 057 

59 484 

60 595 

43 380 

43 419 

45 018 

44 456 

3 685 

8 929 

10 275 

6 293 

10 386 

10 273 

7 331 

11 928 

11 941 

6 333 

11 412 

10 319 

4 226 

4 225 

5 168 

4 134 

– 

– 

 419 

– 

– 

– 

1 106 

– 

– 

– 

1 128 

1 337 

– 

– 

1 108 

 1 

153 566 

164 108 

183 446 

173 310 

129 

 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

NOTES TO THE BUDGETARY IMPLEMENTATION REPORTS  

1.  THE EU BUDGET FRAMEWORK 

The budgetary accounts are kept in accordance with the Financial Regulation (FR). The general budget is 
the instrument which provides for and authorises the Union's revenue and expenditure every year, within 
the  ceilings  and  other  provisions  laid  down  in  the  MFF  in  line  with  the  legislative  acts  concerning 
multiannual programmes adopted under that framework. 

1.1.  MULTIANNUAL FINANCIAL FRAMEWORK 2014-2020 

1. Smart and inclusive 
growth 

1.a Competitiveness 
for growth and jobs 
1.b 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 

of which: 
Administrative 
expenditure of the 
institutions 
6. Compensations 

8. Negative reserve 

9. Special Instruments 
Commitment 
appropriations 

Total payment 
appropriations 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

Total 

  52 756 

  77 986 

  69 304 

  73 512 

  76 420 

  79 924 

  83 661 

  513 563 

EUR million 

  16 560 

  17 666 

  18 467 

  19 925 

  21 239 

  23 082 

  25 191 

  142 130 

  36 196 

  60 320 

  50 837 

  53 587 

  55 181 

  56 842 

  58 470 

  371 433 

  49 857 

  64 692 

  64 262 

  60 191 

  60 267 

  60 344 

  60 421 

  420 034 

  43 779 

  44 190 

  43 951 

  44 146 

  44 163 

  43 881 

  43 888 

  307 998 

  1 737 

  2 456 

  2 546 

  2 578 

  2 656 

  2 801 

  2 951 

  17 725 

  8 335 

  8 721 

  8 749 

  9 076 

  9 143 

  9 483 

  9 432 

  9 825 

  10 268 

  10 510 

  9 918 

  10 346 

  10 786 

  11 254 

  66 262 

  69 584 

  7 056 

  7 351 

  7 679 

  8 007 

  8 360 

  8 700 

  9 071 

  56 224 

   29 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

   29 

– 

– 

  121 435 

  162 959 

  154 738 

  155 631 

  159 514 

  164 123 

  168 797 

 1 087 197 

  135 762 

  140 719 

  130 694 

  126 492 

  154 355 

  166 709 

  172 420 

 1 027 151 

The above table shows the MFF ceilings at current prices. 2020 was the last financial year covered by the 
MFF  2014-2020.  The  overall  ceiling  for  commitment  appropriations  for  2020  was  EUR 168  797 million, 
equivalent  to  0.99%  of  the  EU  GNI,  whilst  the  corresponding  ceiling  for  payment  appropriations  was 
EUR 172 420 million, or 1.01% of the EU GNI. 

Flexibility provisions were agreed for the 2014-2020 MFF. This includes the possibility to transfer unspent 
margins (up until the caps set by the regulation) under the payment ceilings to the following years – via 
the Global Margin for Payments in the framework of the technical adjustment of the MFF for the following 
year.  Therefore,  the  unspent  amount  from  2016  (EUR 13  991 million  in  current  prices),  2017  (EUR 16 
414 million  in  current  prices)  and  2018  (210  million  out  of  the  calculated  11 386  million  due  to  the 
capping)  was  transferred  to  the  years  2018-2020  and  the  ceilings  of  2016-2020  were  adjusted 
accordingly. On 15 May 2019 the Commission adopted a Communication on the technical adjustment of 
the financial framework for 2020 in line with movements in GNI (ESA 2010) (COM(2019)310). 

An explanation  of the  various headings of the  MFF is given below. The structure and the content of the 
headings will change significantly in the next MFF. 

Heading 1 – Smart and inclusive growth 

This heading is divided into two separate, but interlinked components: 

1a 
Competitiveness  for  growth  and  jobs,  encompassing  expenditure  on  research  and  innovation, 
education and training, Connecting Europe Facility,  social  policy, the internal market  and accompanying 
policies. 

130 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

1b 
Economic,  social  and  territorial  cohesion,  designed  to  enhance  convergence  of  the  least 
developed  Member  States  and  regions,  to  complement  the  EU  strategy  for  sustainable  development 
outside the less prosperous regions and to support inter regional cooperation. 

Heading 2 – Sustainable growth: natural resources 

Heading  2  includes  the  common  agricultural  and  fisheries  policies,  and  the  environmental  measures,  in 
particular the Life + program. 

Heading 3 – Security and citizenship 

Heading 3 reflects the growing importance attached to fields where the EU has been assigned particular 
tasks  –  justice  and  home  affairs,  border  protection,  immigration  and  asylum  policy,  public  health  and 
consumer protection, culture, youth, information and dialogue with citizens. 

Heading 4 – Global Europe 

Heading  4  covers  all  external  actions,  including  development  cooperation,  humanitarian  aid,  pre-
accession and neighbourhood instruments. The EDF remains outside the EU budget and is not part of the 
MFF. 

Heading 5 - Administration 

This  heading  covers  administrative  expenditure  for  all  institutions,  pensions  and  the  European  Schools. 
For the Institutions other than the Commission, these costs make up the totality of their expenditure. 

Heading 6 - Compensations 

In accordance with the political agreement that new Member States should not become net contributors 
to the budget at the very beginning of their membership, compensation is foreseen under this heading. 
This  amount  is  available  as  transfers  to  new  Member  States  to  balance  their  budgetary  receipts  and 
contributions. 

Heading 9 – Special instruments 

Flexibility mechanisms enable the EU to mobilise the necessary funds to react to unforeseen events such 
as crisis and emergency situations. Their scope, financial allocation and operating modalities are provided 
for  in  the  MFF  regulation  and  the  Inter  institutional  Agreement.  They  ensure  that  budgetary  resources 
can  respond  to  evolving  priorities,  so  that  every  euro  is  used  where  it  is  most  needed.  Most  of  the 
flexibility  mechanisms  are  therefore  kept  outside  the  MFF  and  the  funding  can  be  mobilised  above  the 
expenditure ceilings. 

The  MFF  2021-2027  will  amount  to  EUR  1  074  billion  for  the  EU27  in  2018  prices,  including  the 
integration  of  the  European  Development  Fund  (EDF).  Together  with  the  Next  Generation  EU  (NGEU) 
recovery instrument of EUR 750 billion, it will allow the EU to provide an unprecedented EUR 1.8 trillion 
of funding over the coming years to support recovery from the COVID-19 pandemic, and to support the 
EU's long-term priorities across different policy areas. 

1.2.  MFF DETAILED HEADINGS (PROGRAMMES) 

The  headings  of  the  MFF  are  further  broken  down  into  detailed  headings,  corresponding  to  the  main 
spending  programmes  (e.g.  Horizon  2020,  Erasmus+  etc.).  Underlying  legal  bases  for  budget 
implementation are adopted at this programme level. Programmes are the commonly used structure for 
reporting  on  implementation  and  results.  Tables  by  programme  are  available  in  the  budgetary 
implementation reports (see tables 4.7 - 4.12 below). 

1.3.  ANNUAL BUDGET 

The budget adoption procedure is laid down in Article 314 of the Treaty on the Functioning of the EU. The 
following diagram presents the deadlines as well as the steps of the budget adoption. 

131 

 
Treaty timetable1 

Annual accounts of the European Union 2020 

1 September  Draft Budget (DB) 

1 October 

Council’s position on the DB 

Commission 

Council 

European Parliament’s position on Council’s position 

Parliament 

13 November 

EP approves 

(42 days) 

Majority of votes cast 

or takes no decision 

▼ 

EP adopts amendments 

Majority of component 
members 

▼ 

Budget adopted 

◀ 

Committee accepts 
Parliament’s 
amendments within 10 
days 

◀ 

Conciliation Committee 

is convened2 

▼ 

Conciliation Committee agrees to a Joint Text 

Conciliation Committee 

YES 

within 14 days 

▼   

NO 

within 14 days 

▼ 

13 November 
to 4 December 
(21 days) 

18 December 
(14 days) 

Parliament and Council 
approve (or fail to 
decide) 

Council approves, 
Parliament rejects 

——— OR ——— 

——— OR ——— 

Council and Parliament 
reject 

Council rejects, 
Parliament has final 
word3 

▼ 

Budget adopted 

Draft Budget rejected 

▶ 

Commission submits a 
new DB 

(1) In practice, the three institutions endeavour to present their respective documents earlier in 
the year in order to smooth the process. 

(2)  The  Conciliation  Committee  is  composed  of  the  members  of  the  Council  or  their 
representatives  and  an  equal  number  of  members  representing  the  European  Parliament.  The 

132 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

Commission  takes  part  in  the  Conciliation  Committee’s  proceedings  and  takes  all  the  necessary 
initiatives to reconcile the positions of the European Parliament and the Council. 

(3)  The  European  Parliament  approves  the  joint  text  and  then,  within  14  days  of  the  Council’s 
rejection, decides (by a majority of its component members and 3/5 of the votes cast) to confirm 
all or some of its amendments. 

The budget structure for  the  Commission consists of  administrative and operational appropriations. The 
other  Institutions  have  only  administrative  appropriations.  Furthermore,  the  budget  distinguishes 
between  two  types  of  appropriations:  non-differentiated  and  differentiated.  Non-differentiated 
appropriations  are  used  to  finance  operations  of  an  annual  nature  (which  comply  with  the  principle  of 
annuality). Differentiated appropriations are used in order to reconcile the principle of  annuality with the 
need  to  manage  multiannual  operations.  Differentiated  appropriations  are  split  into  commitment  and 
payment appropriations: 

- 

commitment appropriations: cover the total cost of the legal obligations, entered into for the current 
financial year, for operations extending over a number of years. However, budgetary commitments 
for actions extending over more than one financial year may be broken down over several years, into 
annual instalments, where the basic act so provides. 

- 

payment appropriations: cover expenditure arising from commitments entered into in the current 
financial year and/or earlier financial years. 

In the accounts, the types of funding are grouped into two main items: 

 

 

Final adopted budget appropriations; and 

Additional appropriations containing: 

– Carry-overs from previous year (the financial regulation allows, for a limited number of cases, 

to carry unspent amounts from the previous year into the current year); and 

– Assigned revenue arising from reimbursements, contributions from third parties/countries to EU 
programmes  and  work  performed  for  third  parties;  these  are  assigned  directly  to  the 
corresponding expenditure budget lines and constitute the third pillar of funding. 

All funding types together form the available appropriations. 

133 

 
 
Annual accounts of the European Union 2020 

1.4.  REVENUE 

1.4.1.  Own resources revenue 

The vast majority of revenue comes from own resources, which consist of the following categories:  

(1) 

Traditional own  resources (TOR): account  for  +/-  14% of  own  resource  revenue. As for  (2) and 
(3) this percentage is referring to MFF period 2014-2020. 

(2) 

Value added tax (VAT) based resource: accounts for +/- 13% of own resource revenue. 

(3) 

Gross national income (GNI) based resource: accounts for +/- 73% of own resource revenue. 

The  allocation  of own  resources  is  made  in  accordance  with  the  rules  laid  down  in  the  Council  Decision 
No. 2014/335/EU, Euratom of 26 May 2014 on the system of the EU's own resources (ORD 2014).  This 
decision entered into force on 1 October 2016 and was applied retroactively from 1 January 2014.  

The  total  amount  of  own  resources  allocated  to  the  Union  to  cover  annual  appropriations  for  payments 
shall not exceed 1.20% of the sum of all the Member States' GNIs. 

With the start of the new MFF, Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the 
system of own resources of the EU (Own Resources Decision 2020), once ratified by all Member States, 
entered into force on 1 June 2021 and replaces the current Own Resources Decision retroactively from 1 
January 2021.  

1.4.2. 

Traditional own resources (TOR) 

TOR consist of customs duties (levied on imports from third countries) levied on economic operators and 
collected by Member States on behalf of the EU. However, Member States keep 20% as a compensation 
for  their  collection  costs.  All  established  traditional  own  resource  amounts  must  be  entered  in  one  or 
other of the accounts kept by the competent authorities: 

- 

- 

In  the  ordinary  accounts  provided  for  in  Article  6(3)  of  Regulation  No  609/2014:  all  amounts 
recovered or guaranteed. 
In the separate accounts provided for also in the above Article: all amounts not yet recovered and/or 
not guaranteed; amounts guaranteed but challenged may also be entered in this account. 

Traditional  own  resources  must  be  entered  in  the  Commission's  account  with  its  treasury  or  national 
central  bank  by  the  Member  State  at  the  latest  on  the  first  working  day  following  the  19th  day  of  the 
second  month  following  the  month  during  which  the  entitlement  was  established  (or  recovered  in  the 
case of the separate account). 

1.4.3. 

Value added tax (VAT) 

Value added tax (VAT) is levied on Member States' VAT bases, which are harmonised for this purpose in 
accordance  with  EU  rules.  However,  the  VAT  base  is  capped  at  50%  of  each  Member  State’s  GNI.  The 
uniform VAT rate applied is fixed at 0.30% except for Germany, the Netherlands and Sweden that benefit 
from a reduced rate of 0.15%. 

1.4.4.  Gross national income (GNI) 

The resource based on gross national income (GNI) is used to finance the part of the budget not covered 
by any other sources of revenue. The same percentage rate is levied on each Member States' GNI, which 
is established in accordance with EU rules. 

VAT and GNI-based resources are determined on the basis of forecasts of relevant bases made when the 
draft budget is prepared. These forecasts are subsequently revised and updated during the budget year 
in  question,  by  means  of  an  amending  budget.  Differences  between  the  amounts  due  by  the  Member 
States  by  reference  to  the  actual  bases,  and  the  sums  actually  paid  on  the  basis  of  the  (revised) 

134 

 
Annual accounts of the European Union 2020 

forecasts, either positive or negative, are called by the Commission from the Member States for the first 
working  day  of  June  of  the  second  year  following  the  budget  year  in  question.  Corrections  may  still  be 
made to the actual VAT and GNI bases during the subsequent four years, unless a reservation is issued. 
These reservations have to be seen as potential claims on the Member States for uncertain amounts, as 
their financial impact cannot be estimated with accuracy. When the exact amount can be determined, the 
corresponding  VAT  and  GNI-based  resources  are  called  either  in  connection  with  the  VAT  and  GNI 
balances exercise or by individual calls for funds. 

1.4.5.  UK correction 

A  budgetary  imbalance  correction  mechanism  in  favour  of  the  United  Kingdom  (reducing  their  own 
resource  payments  while  increasing  the  payments  of  other  Member  States)  was  instituted  by  the 
European  Council  in  Fontainebleau  (June  1984).  Germany,  Austria,  Sweden  and  Netherlands  benefitted 
from a reduced financing of the UK correction (restricted to one fourth of their normal share). The United 
Kingdom’s  correction  and  the  related  financing  arrangements  expired  at  the  end  of  2020  with  its 
withdrawal from the EU. 

1.4.6.  Gross reduction 

The  European  Council  of  7-8  February  2013  concluded  that  Denmark,  the  Netherlands  and  Sweden 
should benefit from gross reductions in their annual contributions based on GNI for the period 2014-2020 
while Austria only benefitted from gross reductions for the period 2014-2016. The annual reductions are 
as follows: Denmark EUR 130 million, the Netherlands EUR 695 million and Sweden EUR 185 million. For 
the  period  2021-2027,  a  gross  reduction  in  the  annual  GNI-based  contributions  will  benefit  Austria, 
Denmark, Germany, the Netherlands and Sweden. 

1.5.  CALCULATION OF THE BUDGET RESULT 

The budget result of the EU is returned to the Member States during the following year through deduction 
of their amounts due for that year. 

The amounts of own resources entered in the accounts are those credited during the course of the year 
to the accounts opened in the Commission's name by the governments of the Member States. Revenue 
comprises  also,  in  the  case  of  a  surplus,  the  budget  result  for  the  previous  financial  year.  The  other 
revenue entered in the accounts is the amount actually received during the course of the year. 

For  the  purposes  of  calculating  the  budget  result  for  the  year,  expenditure  comprises  payments  made 
against the year's appropriations plus any of the appropriations for that year that are carried over to the 
following year. Payments made against the year's appropriations means payments that are made by the 
Accounting Officer by 31 December of the financial year. For the EAGF, payments are those effected by 
the Member States between 16 October N-1 and 15 October N, provided that the Accounting Officer was 
notified of the commitment and authorisation by 31 January N+1. EAGF expenditure may be subject to a 
conformity decision following controls in the Member States. 

The budget result comprises two elements: the result of the EU and the result of the participation of the 
EFTA  countries  belonging  to  the  European  Economic  Area  (EEA).  In  accordance  with  Article  1(1)  of 
Regulation No 608/2014 laying down implementing measures for the system of own resources, this result 
represents the difference between: 

- 

- 

total revenue received for the financial year; and 

total  payments  made  against  current  year's  appropriations  plus  the  total  amount  of  that  year's 
appropriations carried over to the following year. 

The following are added to or deducted from the resulting figure: 

- 

the net balance of cancellations of payment appropriations carried over from previous years and 
any  payments  which,  because  of  fluctuations  in  the  euro  rate,  exceed  non-differentiated 
appropriations carried over from the previous year;  

135 

 
 
 
Annual accounts of the European Union 2020 

- 

- 

the evolution of assigned revenue; and 

the net exchange rate gains or losses recorded during the year. 

Appropriations  carried  over  from  the previous  financial  year in  respect of  contributions  by  and  work  for 
third  parties,  which  by  definition  never  lapse,  are  included  as  additional  appropriations  for  the  financial 
year.  This  explains  the  difference  between  carryovers  from  the  previous  year  in  the  year  N  budget 
implementation  reports  and  those  carried  over  to  the  following  year  in  the  year  N-1  budget 
implementation  reports.  Commitment  appropriations  made  available  again  following  the  repayment  of 
payments on account are disregarded when calculating the budget result. 

Payment  appropriations  carried  over  include:  automatic  carry-overs  and  carry-overs  by  decision.  The 
cancellation  of  unused  payment  appropriations  carried  over  from  the  previous  year  comprises  the 
cancellations of appropriations carried over automatically and by decision. 

136 

 
 
 
 
Annual accounts of the European Union 2020 

1.6.  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) 
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 

Economic result Agencies and ECSC i.L. 

2020 
57 416 

EUR million 
2019 
4 796 

(1 295) 
3 886 
(48 762) 
(46 171) 

8 258 
 (457) 
(17 547) 
(2 268) 
3 248 
3 873 
(4 441) 
(9 334) 
 (142) 

(6 193) 
8 656 
3 341 
5 804 

8 394 
(3 832) 
(10 981) 
(3 532) 
1 924 
3 801 
(3 076) 
(7 304) 
 (79) 

BUDGET RESULT OF THE YEAR 

1 768 

3 217 

In accordance with the Financial Regulation, the economic result of the year is calculated on the basis of 
accrual  accounting  principles  (EU  Accounting  Rules),  while  the  budget  result  is  based  on  modified  cash 
accounting rules. As the economic result and the budget result cover the same underlying transactions – 
the exception being the other (non-budgetary) sources of revenue and expenditure of the agencies and 
the ECSC in Liquidation which are included in the economic result only (see note 6) – the reconciliation of 
the economic result of the year with the budget result of the year serves as a useful consistency check.  

Reconciling items – Revenue 

The actual budgetary revenue for a financial year corresponds to the revenue collected from entitlements 
established  in  the  course  of  the  year  and  amounts  collected  from  entitlements  established  in  previous 
years. Therefore the entitlements established in the current year but not yet collected are to be deducted 
from the economic result for reconciliation purposes as they do not form part of budgetary revenue. On 
the contrary the entitlements established in previous years and collected in current year must be added 
to the economic result for reconciliation purposes.  

The accrued revenue mainly consists of accrued revenue related to the UK’s withdrawal from the EU, the 
Innovation  Fund,  financial  corrections,  own  resources,  interests  and  dividends.  Only  the  net  effect,  i.e. 
accrued  revenue  for  current  year  minus  reversal  accrued  revenue  from  previous  year,  is  taken  into 
consideration.  

Reconciling items – Expenditure  

The  accrued  expenses  mainly  consists  of  accruals  made  for  year-end  cut-off  purposes,  i.e.  eligible 
expenses  incurred  by  beneficiaries  of  EU  funds  but  not  yet  reported  to  the  Commission.  Only  the  net-
effect, i.e. accrued expenses for current year minus the reversal of accrued expenses from the previous 
year,  is  taken  into  consideration.  Payments  made  in  the  current  year  relating  to  invoices  registered  in 
prior  years  are  part  of  current  year's  budgetary  expenditure  and  therefore  must  be  added  to  the 
economic result for reconciliation purposes. 

The  net  effect  of  pre-financing  is  the  combination  of  (1)  the  new  pre-financing  amounts  paid  in  the 
current  year  and  recognised  as  budgetary  expenditure  of  the  year  and  (2)  the  clearing  of  the  pre-
financing  through  eligible  costs  accepted  during  the  current  year.  The  latter  represent  an  expense  in 
accrual  terms  but  not  in  the  budgetary  accounts  since  the  payment  of  the  initial  pre-financing  had 
already been considered as a budgetary expenditure at the time of its payment.  

137 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

As well as the payments made against the year's appropriations, the appropriations for that year that are 
carried forward  to the next  year also  need to be  taken into account in calculating the budget result for 
the year (in accordance with Article 1(1) of Regulation No 608/2014). The same applies for the budgetary 
payments made in the current year from carry-overs from previous years, and the cancellation of unused 
payment appropriations. 

The  movement  in  provisions  relates  to  year-end  estimates  made  in  the  financial  statements  (employee 
benefits mainly) that do not impact the budgetary accounts. Other reconciling amounts comprise different 
elements such as asset amortisation/depreciation, asset acquisitions, capital lease payments and financial 
participations for which the budgetary and accrual accounting treatments differ. 

Reconciling item – Economic result Agencies and ECSC in Liquidation 

The budget result of the year is a non-consolidated figure and does not include the other (non-budgetary) 
sources  of  revenue  and  expenditure  of  the  consolidated  agencies  and  the  ECSC  i.L.  (see  note  6).  To 
reconcile the economic result of the year – a consolidated figure which includes these amounts – with the 
budgetary result of the year, the whole consolidated economic result of the year of the agencies and the 
ECSC i.L. is presented as a reconciling item. 

138 

 
 
Annual accounts of the European Union 2020 

2.  IMPLEMENTATION OF THE 2020 EU BUDGET  

2.1.  REVENUE 

In  the  initial  adopted  EU  budget,  signed  by  the  President  of  the  European  Parliament  on  27  November 
2019, the amount of payment appropriations was EUR 153 566 million and the amount to be financed by 
own resources totalled EUR 151 638 million. The revenue and expenditure estimates in the initial budget 
are  typically  adjusted  during  the  budgetary  year,  such  modifications  being  presented  in  amending 
budgets.  Adjustments  in  the  GNI-based  own  resources  ensure  that  budgeted  revenue  matches  exactly 
budgeted expenditure.  In  accordance  with the principle of  equilibrium,  budget revenue and expenditure 
(payment appropriations) must be in balance. 

During 2020, nine amending budgets were adopted. Taking these into account, the final adopted revenue 
for  2020  amounted to  EUR  164  108  million  and  the  total  financed  by  own  resources  was  EUR  159  832 
million.  The  main  factor  for  the  increase  of  Member  States'  contributions  in  2020  was  the  increase  of 
payment appropriations (EUR 10 542 million). 

As far as the own resources result is concerned, the collection of traditional own resources was close to 
the forecasted amounts.  

The final Member States' VAT and GNI payments also correspond closely to the final budgetary estimate. 
The differences between the forecasted amounts and the amounts actually paid are due to the differences 
between the euro rates used for budgetary purposes and the rates in force at the time when the Member 
States outside the EMU actually made their payments. 

For  the  VAT  and  GNI  balances  the  rules  are  set  out  in  Article  10  b  of  the  Making  Available  Regulation 
(Regulation  609/2014).  The  procedure  does  not  entail  a  budgetary  amendment  and  therefore  the 
Commission directly requests the Member States to pay the net amounts. The impact for the EU budget 
is close to zero due to this netting system.  

The title "Contributions and refunds in connection with EU agreements and programmes" concerns mainly 
revenue  from  financial  corrections  (ESIF,  EAGF  and  EAFRD),  the  participation  of  third  countries  in 
research programs, the clearance of accounts in agricultural funds and other contributions and refunds to 
EU  programs/activities.  A  substantial  part  of  this  total  is  made  up  of  assigned  revenue,  which  typically 
gives rise to the entering of additional appropriations on the expenditure side.  

The revenue from fines relates mainly to fines in the field of competition. 

2.2.  EXPENDITURE  

The EU budget has an important role to support the delivery of the Union's policies and priorities. Despite 
its limited amount, representing around 2% of all public spending in the Union, it complements national 
budgets  and  has  a  clear  focus  on  investment  and  additionality.  It  is  a  key  tool  among  the  wide  set  of 
European-level  policy  and  regulatory  instruments,  which  all  EU  members  have  agreed  upon,  translated 
into a MFF containing the different programmes and maximum expenditure ceilings.  

The  EU  budget  for  2020, adopted  on  27th  November  2019,  confirms  that  the  EU  is  directing  money  to 
where the needs are. In 2020, the biggest part of the EU budget went to boost sustainable growth and 
reduce  the  economic  gaps  between  regions,  stimulate  the  creation  of  jobs,  fight  climate  change,  and 
address the socio-economic impact of the COVID-19 pandemic in the EU, as well as provide assistance to 
third countries. 

2020  was  the  last  year  of  the  2014-2020  MFF  and  the  Commission  used  all  remaining  possibilities  to 
mobilize additional funds to reinforce COVID-19-related actions across the budget and to support Member 
States  with  additional  liquidity.  The  implementation  was  carefully  monitored  and  managed,  which 
resulted in virtually full implementation of almost all appropriations. 

Appropriations established in the final adopted budget were EUR 173.9 billion (4.6% higher compared to 
the 2019 budget)  for commitments, and  EUR 164.1  billion (10.5% higher)  for  payments,  corresponding 
to 1.00% and 0.90% of EU gross national income (GNI), respectively.  

139 

 
Annual accounts of the European Union 2020 

All  headings  reached  high  levels  of  implementation  in  2020.  The  2020  implementation  for  all  types  of 
appropriations  (budget,  carry-overs  from  previous  year  and  assigned  revenue)  was  97%  for 
commitments  and  94%  for  payments.  Implementation  rates  excluding  assigned  revenue  showed  full 
implementation in 2020 (99.5% for commitment appropriations and 98.5% for payment appropriations).  

Outstanding  commitments  (sometimes  referred  to  as  RAL  -  reste  à  liquider),  which  are  committed 
amounts not yet paid for, stood at EUR 303.2 billion at the end of 2020. An increase from the 2019 level 
had  been  expected,  given  the  difference  between  budgeted  commitment  and  payment  appropriations 
(EUR  9.8  billion)  in  the  final  adopted  budget  and  taking  into  account  the  fact  that  an  increase  in 
outstanding commitments  constitutes a normal evolution, as commitment appropriations increase every 
year  as  foreseen  in  the  MFF.  The  increase  in  outstanding  commitments  compared  to  2019  was 
EUR 5.5 billion. 

140 

 
 
3.  IMPLEMENTATION OF EU BUDGET REVENUE  

Annual accounts of the European Union 2020 

3.1.  SUMMARY OF THE IMPLEMENTATION OF EU BUDGET REVENUE  

Title 

Income 
appropriations 
Final 
Initial 
adopted 
adopted 
budget 
budget 

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 

1 

2 

3 

4 

5=3+4 

6 

7 

8=6+7 

9=8/2 

10=5-8 

3  Surpluses, balances and adjustments 

– 

2 102 

3 167 

 7 

3 173 

3 167 

 0 

3 167 

 151 % 

4 

5 

6 

Revenue accruing from persons working 
with the institutions and other union 
bodies 
Revenue accruing from the 
administrative operation of the 
institutions 
Contributions and refunds in connection 
with Union agreements and programmes 

7 

Interests on late payments and fines 

8  Borrowing and lending operations 

9  Miscellaneous revenue 

1 651 

1 651 

1 619 

 10 

1 629 

1 606 

 9 

1 615 

 98 % 

 15 

 15 

 600 

 44 

 645 

 569 

 23 

 592 

3 933 % 

 130 

 115 

 2 

 15 

 130 

7 321 

1 545 

8 866 

6 881 

1 275 

8 156 

6 273 % 

 711 

 361 

1 078 

15 949 

17 027 

 159 

 470 

 629 

 174 % 

16 398 

 2 

 15 

– 

 6 

– 

 7 

– 

 12 

– 

 5 

– 

 1 

– 

 6 

– 

 39 % 

– 

 7 

 7 

 14 

 53 

Total 

153 566  164 108  173 882 

19 853  193 735 

172 472 

1 834  174 306 

106 % 

19 429 

141 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.  IMPLEMENTATION OF EU BUDGET EXPENDITURE  

Annual accounts of the European Union 2020 

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

Commitment appropriations 

Payment appropriations 

MFF Heading 

Budget appropriations 

Additional 
appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Carry-
overs 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

7 

8 

9=7+8 

10 

11 

Total 
approp. 
available 

6=3+ 
4+5 

EUR million 

Total 
approp. 
available 

12=9+ 
10+11 

1 

Smart and inclusive growth 

83 931 

 (12) 

83 918 

 520 

6 431 

90 870 

72 354 

4 925 

77 278 

 151 

10 904 

88 334 

1a: Competitiveness for 
growth and jobs 

1b: Economic, social and 
territorial cohesion 

Sustainable growth: natural 
resources 
of which: Market related 
expenditure and direct 
payments 

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 

Security and citizenship 

3 729 

3 423 

7 152 

– 

1 000 

8 152 

3 685 

2 607 

6 293 

 9 

1 030 

7 331 

Global Europe 

Administration 

of which: Administrative 
expenditure of the institutions 

Compensations 

Negative reserve and deficit 
carried over from the 
previous financial year  

10 262 

1 089 

11 350 

 47 

 843 

12 240 

8 929 

1 457 

10 386 

 38 

1 503 

11 928 

10 272 

 (1) 

10 271 

– 

 837 

11 108 

10 275 

 (2) 

10 273 

 828 

 839 

11 941 

4 226 

 (1) 

4 225 

 442 

4 667 

4 226 

 (1) 

4 225 

 499 

 443 

5 168 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

Special Instruments 

 588 

 649 

1 236 

 49 

 21 

1 306 

 419 

 688 

1 106 

Innovation Fund (IF) 

– 

– 

– 

– 

1 337 

1 337 

– 

– 

– 

Total 

168 688 

5 196  173 884  1 083 

12 775  187 742  153 566 

10 542  164 108  1 704  17 634 

183 446 

142 

– 

– 

 1 

– 

– 

– 

– 

– 

 21 

1 128 

1 337 

1 337 

2 

3 

4 

5 

6 

8 

9 

O 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.2.  MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Union 2020 

MFF Heading 

Total 
appropr.  
available 

Commitments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriat. carried over to 
2021 

assigned 
revenue 

carry-
overs by 
decision 

Total 

EUR million 

Appropriations lapsing 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

13=10+ 
11+12 

1 

2 

3 

4 

5=2+3 
+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

1 

2 

3 

4 

5 

6 

8 

9 

O 

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 

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 

Security and citizenship 

8 152 

7 152 

– 

 550 

7 702 

 94 % 

 450 

Global Europe 

12 240 

11 349 

 47 

 555 

11 950 

 98 % 

 288 

– 

– 

 450 

 288 

 6 

 5 

 1 

 6 

 5 

 1 

 1 

11 108 

10 009 

– 

 540 

10 548 

 95 % 

 291 

 85 

 376 

 178 

4 667 

4 024 

 294 

4 319 

 93 % 

 142 

 85 

 226 

 116 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

1 108 

 85 % 

 13 

Special Instruments 

1 306 

1 059 

 49 

Innovation Fund (IF) 

1 337 

– 

– 

 5 

 5 

 0 % 

1 332 

– 

– 

– 

– 

– 

– 

– 

– 

 13 

 177 

1 332 

– 

Administration 
of which: Administrative 
expenditure of the 
institutions 

Compensations 

Negative reserve and 
deficit carried over from 
the previous financial year  

– 

– 

– 

 4 

 4 

– 

– 

– 

0 

– 

– 

– 

– 

 59 

 0 

 59 

 65 

 5 

 60 

 976 

 986 

 0 

 0 

 0 

 6 

 6 

– 

– 

 8 

– 

 9 

 1 

 2 

 184 

 122 

– 

– 

 185 

– 

Total 

187 742  172 933  1 078 

7 688  181 699 

97 % 

4 038 

 582 

4 620 

 369 

 4 

1 050 

1 423 

143 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.3.  MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS 

Annual accounts of the European Union 2020 

MFF Heading 

Total 
appropr. 
available 

Payments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over to 
2021 

automat. 
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 

88 334 

77 097 

 129 

6 316 

83 541 

 95 % 

 149 

 12 

4 579 

4 740 

28 726 

21 587 

 118 

2 352 

24 057 

 84 % 

 134 

 12 

4 474 

4 620 

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 

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 
Security and 
citizenship 

EUR million 

Appropriations lapsing 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

11 

12 

13 

Total 

14=11+ 
12+13 

 21 

 19 

 23 

 21 

 1 

 9 

 8 

 5 

 4 

 2 

 6 

 6 

 2 

 4 

 9 

 9 

 0 

 0 

 0 

 0 

 1 

 5 

 53 

 49 

 4 

 16 

 14 

 7 

 8 

 266 

Global Europe 

11 928 

10 328 

 35 

1 049 

11 412 

 96 % 

 454 

 508 

7 331 

5 896 

 7 

 430 

6 333 

 86 % 

 381 

 600 

 991 

 11 

 37 

 17 

 85 

Administration 

11 941 

9 111 

 748 

 460 

10 319 

 86 % 

 895 

 375 

1 355 

 182 

 80 

of which: 
Administrative 
expenditure of the 
institutions 

Compensations 

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

Innovation Fund (IF) 

5 168 

3 435 

 440 

 258 

4 134 

 80 % 

 585 

 85 

 182 

 852 

 120 

 59 

 3 

 182 

– 

– 

– 

– 

1 128 

1 337 

1 106 

– 

– 

– 

 0 

– 

– 

– 

 2 

 1 

– 

– 

– 

– 

1 108 

 98 % 

 1 

 0 % 

– 

0 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 13 

 13 

1 336 

1 336 

– 

– 

 0 

– 

– 

– 

 0 

– 

– 

– 

 6 

– 

– 

– 

 6 

– 

Total 

183 446  161 801  1 589 

9 920  173 310  94 % 

1 116 

 969 

7 694  9 779 

 221 

 115 

 20 

 357 

144 

1 

2 

3 

4 

5 

6 

8 

9 

O 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.4.  MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) 

Annual accounts of the European Union 2020 

MFF Heading 

Commitments outstanding at the end of previous year 

Commitments of the current year 

Commitm. 
carried forward 
from previous 
year 

Decommitm./ 
Revaluations/ 
Cancellations 

Payments 

Commitm. 
outstanding 
at year-end 

Commitm. 
made 
during the 
year 

Payments 

Cancellation of 
commitm. 
which cannot 
be carried over 

Commitm. 
outstanding 
at year-end 

EUR million 

Total 
commitm. 
outstanding 
at the 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 

40 300 

 (954) 

(14 384) 

24 962 

29 315 

(9 673) 

1b: Economic, social and territorial 
cohesion 

180 327 

 (921) 

(57 289) 

122 117 

60 248 

(2 195) 

2  Sustainable growth: natural resources 

40 876 

 (122) 

(15 695) 

25 058 

60 823 

(44 900) 

of which: Market related expenditure and 
direct payments 

 432 

 (5) 

 (262) 

 165 

44 315 

(44 193) 

3  Security and citizenship 

6 183 

 (119) 

(2 225) 

3 839 

7 702 

(4 108) 

4  Global Europe 

5  Administration 

of which: Administrative expenditure of 
the institutions 

6  Compensations 

8 

Negative reserve and deficit carried over 
from the previous financial year  

9  Special Instruments 

O 

Innovation Fund (IF) 

29 154 

 (672) 

(7 862) 

20 620 

11 950 

(3 550) 

 854 

 511 

– 

– 

 1 

– 

 (92) 

 (757) 

 (70) 

 (440) 

– 

– 

 (0) 

– 

– 

– 

 (0) 

– 

 5 

 2 

– 

– 

– 

– 

10 548 

(9 563) 

4 319 

(3 694) 

– 

– 

– 

– 

1 108 

(1 108) 

 5 

 (1) 

 (6) 

 (5) 

 (0) 

– 

– 

– 

 (1) 

 (0) 

0 

– 

– 

– 

– 

77 689 

224 769 

19 636 

44 598 

58 053 

180 170 

15 923 

40 982 

 122 

 286 

3 594 

7 433 

8 400 

29 020 

 985 

 625 

– 

– 

 0 

 4 

 990 

 627 

– 

– 

 0 

 4 

Total 

297 695 

(2 881) 

(98 213) 

196 601 

181 699 

(75 096) 

 (7) 

106 596 

303 197 

145 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.5.  MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN  

Annual accounts of the European Union 2020 

EUR million 

MFF Heading 

< 2014 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

Total 

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 

of which: Administrative expenditure of the institutions 

9  Special Instruments 

O 

Innovation Fund (IF) 

Total 

3 347 

 683 

2 664 

 120 

– 

 24 

 878 

 570 

 308 

 271 

– 

 9 

1 741 

4 079 

21 655 

46 203 

68 942 

77 924 

224 769 

 903 

 838 

1 748 

3 530 

6 544 

10 749 

19 871 

44 598 

2 330 

18 125 

39 659 

58 193 

58 053 

180 170 

1 286 

1 209 

2 388 

7 633 

12 142 

15 934 

40 982 

– 

 34 

 1 

 9 

 44 

 110 

 122 

 231 

 637 

1 251 

1 652 

3 594 

 286 

7 433 

1 339 

 607 

1 140 

2 122 

3 351 

4 733 

7 304 

8 423 

29 020 

– 

0 

– 

– 

– 

0 

– 

– 

– 

0 

– 

– 

– 

0 

– 

– 

 0 

0 

– 

– 

 0 

0 

– 

– 

 3 

0 

 0 

– 

 987 

 627 

 0 

 4 

 990 

 627 

 0 

 4 

4 830 

1 765 

4 201 

7 640 

28 030 

59 820 

90 044  106 867 

303 197 

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. 

146 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

4.6.  MFF: OUTSTANDING COMMITMENTS BY APPROPRIATIONS TYPE 

Heading 

From budget appropriations 

From assigned revenue appropriations 

Commitm. 
carried 
forward 
from 2019 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

Amount 
remaining to 
be settled 

Commitm. 
carried 
forward 
from 2019 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

5=1+2+3-4 

6 

7 

8 

9 

Amount 
remaining 
to be settled 

10=6+7+8-
9 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
2020 

11=5+10 

1  Smart and inclusive growth 

195 138 

(1 648) 

84 411 

81 035 

196 865 

25 490 

 (232) 

5 152 

2 506 

27 904 

224 769 

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 

37 087 

 (736) 

25 257 

21 846 

39 762 

3 213 

 (223) 

4 058 

2 212 

4 837 

44 598 

158 051 

 (912) 

59 154 

59 190 

157 103 

22 277 

 (10) 

1 095 

 294 

23 067 

180 170 

40 451 

 (122) 

59 937 

59 707 

40 559 

 425 

 (0) 

 886 

 888 

 423 

40 982 

 431 

 (5) 

43 441 

43 582 

 286 

 1 

– 

 873 

 874 

– 

 286 

3  Security and citizenship 

6 004 

 (118) 

7 152 

5 919 

7 119 

 179 

 (2) 

 550 

 414 

 314 

7 433 

27 633 

 (627) 

11 395 

10 468 

27 933 

1 521 

 (46) 

 555 

 943 

1 087 

29 020 

4  Global Europe 

5  Administration 

   of which: Administrative 
expenditure of the institutions 

 761 

 (41) 

10 009 

9 818 

 464 

 (22) 

4 024 

3 875 

9  Special Instruments 

 1 

 (0) 

1 108 

1 108 

O  Innovation Fund (IF) 

– 

– 

 910 

 591 

 0 

– 

 93 

 (51) 

 47 

 (47) 

 540 

 294 

 502 

 258 

 80 

 36 

– 

– 

 5 

 1 

 4 

 990 

 627 

 0 

 4 

  Total 

269 987  (2 557)  174 012  168 056 

273 386 

27 708 

 (330) 

7 688 

5 254 

29 811 

303 197 

147 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.7.  DETAILED MFF: BREAKDOWN AND CHANGES IN COMMITMENT AND PAYMENT 

  APPROPRIATIONS 

Annual accounts of the European Union 2020 

EUR million 

Programme 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

Total 
approp. 
available 

6=3+ 
4+5 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

7 

8 

9=7+8 

10 

11 

Total 
approp. 
available 

12=9+ 
10+11 

1 

European Fund Strategic 
Investments (EFSI) 

European satellite navigation 
(EGNOS/Galileo) 

International Thermonuclear 
Reactor (ITER) 

European Earth Observation Progr 
(Copernicus) 

  European Solidarity Corps (ESC) 

European Defense Industrial 
Development Programme (EDIDP) 

Nuclear Safety and 
Decommissioning 

 173 

1 207 

 365 

 647 

 166 

 255 

 147 

– 

– 

 2 

 0 

– 

– 

– 

 173 

1 207 

 367 

 647 

 166 

 255 

 147 

  Horizon 2020 

13 486 

 (0) 

13 486 

– 

– 

– 

– 

– 

– 

– 

– 

 157 

 329 

1 105 

 (2) 

1 103 

 121 

1 328 

 954 

 19 

 973 

 46 

 412 

 639 

 (0) 

 638 

 16 

 11 

 663 

 552 

 1 

 553 

 177 

 154 

 (27) 

 126 

 0 

 255 

 201 

 (24) 

 177 

– 

 2 

 0 

 2 

 3 

 2 

– 

 147 

 171 

 (54) 

 117 

– 

 184 

1 287 

 272 

1 247 

 46 

 14 

 15 

 0 

– 

 684 

 569 

 144 

 178 

 117 

3 233 

16 719 

11 796 

 (181) 

11 615 

 79 

4 776 

16 470 

 398 

 0 

 398 

 3 

 92 

 492 

 417 

 (71) 

 346 

 36 

 137 

 519 

Euratom Research and Training 
Programme 

Competitiveness enterprises and 
SME's (COSME) 

Education, Training and Sport 
(Erasmus+) 

Employment and Social Innovation 
(EaSI) 

  Customs, Fiscalis and Anti-Fraud 

 418 

 (0) 

 418 

2 885 

 117 

 133 

– 

– 

2 885 

 117 

 (0) 

 133 

  CEF - Energy 

1 281 

– 

1 281 

 6 

1 287 

 41 

 460 

 386 

 102 

 488 

 678 

3 563 

2 739 

 9 

2 748 

 61 

 12 

 178 

 105 

 145 

 124 

 420 

 (6) 

 21 

 (29) 

 99 

 145 

 390 

 2 

 7 

 1 

 0 

 1 

 60 

 549 

 787 

3 543 

 81 

 15 

 8 

 181 

 160 

 399 

– 

– 

– 

– 

– 

148 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

Programme 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

Total 
approp. 
available 

6=3+ 
4+5 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

7 

8 

9=7+8 

10 

11 

Total 
approp. 
available 

12=9+ 
10+11 

EUR million 

  CEF - Transport 

2 579 

 1 

2 580 

CEF - Information & 
Communications Technology (ICT) 

Energy projects for economic 
recovery (EERP) 

  Decentralised agencies 

  Other actions and programmes 

Pilot projects and preparatory 
actions 

Specific competences of the 
Commission 

Regional convergence (Less 
developed regions) 

 210 

– 

 400 

 196 

 85 

 136 

– 

– 

 (14) 

 (1) 

 (1) 

 210 

– 

 386 

 196 

 85 

 0 

 136 

– 

– 

– 

– 

– 

– 

– 

 22 

2 602 

1 477 

 (251) 

1 225 

 6 

 216 

 208 

 33 

 240 

 2 

 24 

 477 

 1 

 8 

 2 

 60 

 (29) 

 31 

 410 

 673 

 401 

 185 

 (24) 

 (9) 

 377 

 175 

 85 

 95 

 (29) 

 65 

 144 

 122 

 1 

 122 

28 762 

 (4) 

28 758 

 389 

 687 

29 834 

25 414 

2 948 

28 362 

  Transition regions 

5 964 

 83 

6 047 

Competitiveness (More developed 
regions) 

Outermost and sparsely populated 
regions 

8 822 

1 757 

10 580 

 236 

– 

 236 

  Cohesion fund 

10 065 

(1 827) 

8 237 

  European territorial cooperation 

2 012 

  Technical assistance 

European Aid to the Most Deprived 
(FEAD) 

  Youth Employment initiative 

 274 

 579 

 145 

  Connecting Europe Facility (CEF) 

1 781 

Pilot projects and preparatory 
actions 

 6 

– 

 5 

– 

2 012 

 279 

 579 

 50 

 51 

 0 

 2 

– 

– 

– 

 50 

6 147 

4 777 

 204 

4 981 

 390 

11 021 

7 698 

 999 

8 697 

– 

 236 

 202 

 98 

 300 

 177 

8 416 

8 300 

 589 

8 889 

 10 

2 023 

1 285 

 231 

1 516 

 5 

 1 

 284 

 231 

 (14) 

 217 

 13 

 580 

 411 

 108 

 520 

 0 

 (14) 

 131 

 25 

 96 

 252 

 603 

 (64) 

 539 

– 

– 

1 781 

 6 

– 

– 

 4 

 0 

1 784 

1 113 

 388 

1 502 

 6 

 12 

 (8) 

 4 

– 

– 

– 

 2 

 0 

– 

– 

 1 

– 

– 

– 

– 

– 

– 

– 

– 

 23 

1 250 

 6 

 2 

 24 

 380 

 1 

 4 

 246 

 33 

 401 

 557 

 66 

 127 

1 629 

29 990 

 117 

 737 

5 097 

9 434 

 19 

 319 

1 276 

10 165 

 155 

1 671 

 5 

 3 

 126 

 4 

 0 

 235 

 522 

 665 

1 506 

 4 

  Total MFF Heading 1 

83 931 

 (12) 

83 918 

 520 

6 431 

90 870 

72 354 

4 925 

77 278 

 151 

10 904 

88 334 

149 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

Total 
approp. 
available 

6=3+ 
4+5 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

7 

8 

9=7+8 

10 

11 

Total 
approp. 
available 

12=9+ 
10+11 

43 410 

 49 

43 459 

 467 

 929 

44 855 

43 380 

 39 

43 419 

 670 

 929 

45 018 

EUR million 

14 709 

– 

14 709 

 960 

 (0) 

 960 

 148 

– 

 148 

 590 

 68 

– 

 23 

– 

– 

– 

– 

– 

– 

 590 

 68 

– 

 23 

– 

– 

– 

– 

– 

– 

– 

– 

– 

1 163 

15 871 

13 141 

 799 

13 940 

 205 

1 165 

 770 

 (8) 

 762 

 2 

 1 

 910 

14 852 

 151 

 913 

– 

 148 

 143 

 2 

 144 

– 

– 

 144 

 3 

 7 

– 

 0 

– 

 593 

 383 

 46 

 429 

 4 

 75 

– 

 23 

– 

 68 

– 

– 

– 

 20 

 (11) 

– 

– 

 68 

– 

 9 

– 

– 

– 

– 

– 

 2 

 7 

– 

 0 

– 

 435 

 75 

– 

 9 

– 

Programme 

2 

European Agricultural Guarantee 
Fund (EAGF) 

Agricultural Fund Rural 
Development (EAFRD) 

European Maritime and Fisheries 
Fund (EMFF) 

Fisheries Partnership Agreements 
(SFPAs) and Fisheries Management 
Organisations (RFMOs) 

Environment and climate action 
(LIFE) 

  Decentralised agencies 

  Other actions and measures 

Pilot projects and preparatory 
actions 

  Specific Actions 

  Total MFF Heading 2 

59 907 

 49 

59 956 

 467 

2 308 

62 730 

57 904 

 867 

58 772 

 677 

1 999 

61 448 

3 

Asylum, Migration and Integration 
Fund (AMF) 

  Consumer 

  Creative Europe 

Emergency Support within the Union 
(IES) 

 949 

 30 

 252 

 441 

1 389 

– 

 0 

 30 

 252 

– 

2 700 

2 700 

Internal Security Fund 

 501 

 28 

 528 

IT systems 

Justice 

  Rights, Equality and Citizenship 

– 

 47 

 70 

– 

 (0) 

 0 

– 

 47 

 70 

– 

– 

– 

– 

– 

– 

– 

– 

 16 

1 406 

 953 

 171 

1 123 

 1 

 13 

 31 

 28 

 2 

 30 

 265 

 215 

 (16) 

 200 

 750 

3 450 

– 

2 610 

2 610 

 126 

 655 

 670 

 (217) 

 454 

 0 

 1 

 2 

 0 

 47 

 72 

– 

 43 

 71 

– 

 11 

 7 

– 

 54 

 77 

 1 

 1 

 2 

 0 

 1 

– 

 0 

 0 

 17 

 1 

 15 

 750 

 161 

 0 

 1 

 2 

1 142 

 31 

 216 

3 360 

 616 

 0 

 55 

 80 

150 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

Programme 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

Total 
approp. 
available 

6=3+ 
4+5 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

7 

8 

9=7+8 

10 

11 

Total 
approp. 
available 

12=9+ 
10+11 

EUR million 

  Union Civil protection Mechanism 

  Europe for Citizens 

  Food and feed 

  Health 

 141 

 31 

 279 

 70 

 370 

 511 

 7 

 38 

 (31) 

 247 

 3 

 73 

  Decentralised agencies 

1 233 

 (94) 

1 139 

Pilot projects and preparatory 
actions 

  Specific Actions 

 23 

 106 

– 

 23 

 (0) 

 106 

  Total MFF Heading 3 

3 729 

3 423 

7 152 

4  Pre-accession assistance (IPA II) 

1 571 

 38 

1 609 

  Macro-financial Assistance (MFA) 

  Guarantee Fund for External Actions 

  Union Civil Protection Mechanism 

  EU Aid Volunteers initiative (EUAV) 

Fund for Sustainable Development 
(EFSD) 

European Neighbourhood 
Instrument (ENI) 

Development Cooperation 
Instrument (DCI) 

  Partnership Instrument (PI) 

Democracy and Human Rights 
(EIDHR) 

  Stability and Peace (IcSP) 

 20 

 233 

 19 

 21 

 25 

 (20) 

 0 

– 

 233 

 66 

 (17) 

– 

 85 

 4 

 25 

2 671 

 174 

2 845 

3 272 

 (67) 

3 206 

 162 

 196 

 394 

 2 

 164 

 (24) 

 172 

 15 

 408 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 4 

 3 

– 

 7 

 4 

 1 

 15 

 526 

 38 

 62 

 29 

 132 

 194 

 (4) 

 25 

 251 

 245 

 (11) 

 233 

 75 

 64 

 (3) 

 61 

 67 

1 206 

1 184 

 (56) 

1 128 

 0 

 2 

 23 

 16 

 (5) 

 108 

 105 

 (13) 

 11 

 92 

1 000 

8 152 

3 685 

2 607 

6 293 

 249 

1 858 

1 432 

 264 

1 696 

 0 

 27 

 (12) 

 15 

 240 

 233 

– 

 233 

 89 

 4 

 16 

 19 

 25 

 22 

 (14) 

– 

 37 

 5 

 25 

 80 

 105 

– 

 0 

 1 

 1 

– 

– 

 1 

 9 

 6 

– 

– 

– 

– 

– 

 9 

 0 

 2 

 3 

 203 

 26 

 237 

 65 

 67 

1 195 

 0 

 2 

1 030 

 448 

– 

 7 

 3 

 1 

 11 

 94 

7 331 

2 150 

 15 

 240 

 40 

 5 

 174 

 199 

 64 

2 909 

1 966 

 639 

2 605 

 6 

 70 

2 681 

 88 

3 294 

2 797 

 168 

2 965 

 13 

 134 

3 112 

 8 

 7 

 5 

 172 

 133 

 (2) 

 131 

 179 

 175 

 (24) 

 151 

 413 

 350 

 30 

 379 

 0 

 3 

 3 

 6 

 8 

 7 

 6 

 140 

 161 

 389 

 336 

1 956 

  Humanitarian aid 

1 102 

 936 

2 038 

 46 

 20 

2 103 

1 207 

 407 

1 614 

151 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

EUR million 

Programme 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

Total 
approp. 
available 

6=3+ 
4+5 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

7 

8 

9=7+8 

10 

11 

Total 
approp. 
available 

12=9+ 
10+11 

Common Foreign and Security Policy 
(CFSP) 

  Nuclear Safety Cooperation (INSC) 

  Decentralised agencies 

  Other actions and programmes 

Pilot projects and preparatory 
actions 

  Specific Actions 

 352 

 (16) 

 336 

 33 

 21 

 85 

 4 

 81 

– 

– 

 (2) 

 (4) 

 7 

 33 

 21 

 83 

– 

 88 

– 

– 

– 

– 

 1 

– 

 66 

 402 

 329 

 5 

 334 

 0 

 0 

 33 

 21 

 244 

 327 

 0 

 1 

 1 

 88 

 33 

 21 

 86 

 3 

 (17) 

 (1) 

 1 

 (0) 

 78 

 (10) 

 16 

 20 

 87 

 3 

 68 

 0 

 1 

– 

 0 

– 

– 

 64 

 399 

 0 

 0 

 16 

 21 

 244 

 331 

 0 

 1 

 3 

 69 

  Total MFF Heading 4 

10 262 

1 089 

11 350 

 47 

 843 

12 240 

8 929 

1 457 

10 386 

 38 

1 503 

11 928 

5  Pensions 

2 123 

 (19) 

2 104 

  European schools 

 192 

 (9) 

 183 

  Decentralised agencies 

Pilot projects and preparatory 
actions 

Commission administrative 
expenditure 

– 

– 

– 

– 

– 

– 

3 731 

 28 

3 759 

Administrative expenditure of Other 
Institutions 

4 226 

 (1) 

4 225 

  Total MFF Heading 5 

10 272 

 (1) 

10 271 

6  Compensations 

  Total MFF Heading 6 

8  Negative reserve 

  Deficit carried over 

  Total MFF Heading 8 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

9  Emergency Aid Reserve (EAR) 

 359 

 (359) 

– 

– 

– 

– 

– 

– 

 0 

2 104 

2 123 

 (19) 

2 104 

 17 

 200 

 192 

 (9) 

 183 

– 

– 

– 

– 

– 

 3 

– 

 0 

– 

 3 

– 

 0 

– 

 0 

 0 

 17 

– 

– 

2 104 

 201 

– 

 4 

 378 

4 137 

3 731 

 26 

3 757 

 328 

 379 

4 464 

 442 

4 667 

4 226 

 (1) 

4 225 

 499 

 837 

11 108 

10 275 

 (2) 

10 273 

 828 

 443 

 839 

5 168 

11 941 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 359 

 (359) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

152 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Programme 

European Globalisation Adjustment 
Fund (EGF) 
European Union Solidarity Fund 
(EUSF) 

Annual accounts of the European Union 2020 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

Total 
approp. 
available 

6=3+ 
4+5 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

7 

8 

9=7+8 

10 

11 

Total 
approp. 
available 

12=9+ 
10+11 

EUR million 

 179 

– 

 179 

– 

 21 

 200 

 10 

 (10) 

 0 

 50 

1 007 

1 057 

  Total MFF Heading 9 

 588 

 649 

1 236 

O  Innovation Fund (IF) 

  Total MFF Heading O 

– 

– 

– 

– 

– 

– 

 49 

 49 

– 

– 

– 

1 106 

 50 

1 056 

1 106 

 21 

1 306 

 419 

 688 

1 106 

1 337 

1 337 

1 337 

1 337 

– 

– 

– 

– 

– 

– 

 1 

– 

 1 

– 

– 

 21 

– 

 21 

1 337 

1 337 

 22 

1 106 

1 128 

1 337 

1 337 

  Total 

168 688 

5 196  173 884 

1 083 

12 775  187 742  153 566 

10 542  164 108  1 704 

17 634 

183 446 

153 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.8.  DETAILED MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Union 2020 

Programme 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

Commitments made 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriat. carried over to 
2021 

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 

  EUR million 

Appropriations lapsing 

1 

European Fund Strategic 
Investments (EFSI) 

European satellite navigation 
(EGNOS/Galileo) 

International Thermonuclear 
Reactor (ITER) 

European Earth Observation 
Progr (Copernicus) 

 329 

 173 

1 328 

1 207 

 412 

 367 

 663 

 647 

  European Solidarity Corps (ESC) 

 177 

 166 

European Defense Industrial 
Development Programme 
(EDIDP) 

Nuclear Safety and 
Decommissioning 

 255 

 255 

 147 

 147 

  Horizon 2020 

16 719 

13 485 

– 

– 

– 

– 

– 

– 

– 

– 

 148 

 321 

 97 % 

 8 

 105 

1 312 

 99 % 

 16 

 29 

 396 

 96 % 

 16 

 16 

 663 

 100 % 

 7 

 173 

 98 % 

 0 

 255 

 100 % 

– 

 147 

 100 % 

 0 

 4 

– 

– 

2 925 

16 411 

 98 % 

 307 

 492 

 386 

 3 

 26 

 415 

 84 % 

Euratom Research and Training 
Programme 
Competitiveness enterprises and 
SME's (COSME) 

Education, Training and Sport 
(Erasmus+) 

Employment and Social 
Innovation (EaSI) 

 460 

 418 

3 563 

2 885 

 178 

 116 

  Customs, Fiscalis and Anti-Fraud 

 145 

 133 

  CEF - Energy 

  CEF - Transport 

CEF - Information & 
Communications Technology 
(ICT) 

1 287 

1 281 

2 602 

2 580 

 216 

 210 

– 

– 

– 

– 

– 

– 

– 

 66 

 11 

 30 

 448 

 98 % 

 595 

3 481 

 98 % 

 82 

 49 

 164 

 92 % 

 12 

 11 

 144 

 99 % 

1 282 

 100 % 

 1 

 4 

 1 

 4 

 6 

2 584 

 99 % 

 18 

 216 

 100 % 

 0 

154 

– 

– 

– 

– 

– 

– 

– 

– 

 12 

– 

– 

– 

– 

– 

– 

– 

 8 

 16 

 16 

 0 

 4 

– 

– 

 307 

 77 

 11 

 82 

 12 

 1 

 4 

 18 

 0 

 0 

– 

 0 

 0 

– 

 0 

– 

 1 

 0 

 0 

 0 

 1 

 0 

 0 

 0 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

– 

– 

– 

 0 

 0 

– 

– 

 0 

– 

– 

– 

– 

Total 

13=10+ 
11+12 

 0 

 0 

 0 

 0 

– 

 0 

– 

 1 

 0 

 0 

 0 

 1 

 0 

 0 

 0 

 0 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

Programme 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

Commitments made 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriat. carried over to 
2021 

assigned 
revenue 

carry-
overs by 
decision 

Total 

  EUR million 

Appropriations lapsing 

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 

Competitiveness (More 
developed regions) 

Outermost and sparsely 
populated regions 

Energy projects for economic 
recovery (EERP) 

  Decentralised agencies 

  Other actions and programmes 

Pilot projects and preparatory 
actions 

Specific competences of the 
Commission 

Regional convergence (Less 
developed regions) 

 2 

– 

 410 

 673 

 385 

 195 

 85 

 83 

 144 

 135 

– 

– 

– 

– 

– 

 0 

 18 

 83 

 0 

 7 % 

 403 

 278 

 98 % 

 41 % 

– 

 83 

 98 % 

 3 

 138 

 96 % 

29 834 

28 758 

 389 

 579 

29 726 

 100 % 

  Transition regions 

6 147 

6 047 

 50 

 50 

6 147 

 100 % 

 2 

 6 

 394 

 0 

 5 

 65 

 0 

– 

 1 

– 

 1 

– 

– 

– 

 2 

 7 

 394 

 1 

 5 

 65 

 0 

11 021 

10 571 

 51 

 197 

10 819 

 98 % 

 185 

 8 

 193 

  Cohesion fund 

8 416 

8 237 

  European territorial cooperation 

2 023 

2 012 

  Technical assistance 

European Aid to the Most 
Deprived (FEAD) 

 284 

 278 

 580 

 579 

 236 

 236 

– 

 236 

 100 % 

– 

 165 

8 404 

 100 % 

 11 

 0 

 2 

– 

– 

– 

– 

 4 

 1 

2 012 

 99 % 

 282 

 99 % 

 579 

 100 % 

  Youth Employment initiative 

 252 

 131 

 25 

 96 

 252 

 100 % 

  Connecting Europe Facility (CEF) 

1 784 

1 781 

Pilot projects and preparatory 
actions 

 6 

 6 

– 

– 

 3 

1 784 

 100 % 

– 

 6 

 98 % 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 11 

 3 

 0 

– 

– 

 0 

 0 

 3 

 0 

– 

– 

 0 

 0 

  Total MFF Heading 1 

90 870 

83 890 

 520 

5 152 

89 563 

99 % 

1 219 

 22 

1 241 

2 

European Agricultural Guarantee 
Fund (EAGF) 

Agricultural Fund Rural 
Development (EAFRD) 

44 855 

42 979 

 463 

 873 

44 315 

 99 % 

 56 

 475 

 531 

15 871 

14 708 

– 

 0 

14 709 

 93 % 

 260 

– 

 260 

155 

– 

 0 

 1 

 0 

 1 

– 

– 

– 

– 

– 

– 

 1 

 0 

– 

– 

– 

 6 

 5 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 4 

Total 

13=10+ 
11+12 

– 

 0 

 1 

 1 

 1 

– 

– 

 0 

 0 

 0 

 43 

 43 

 0 

 8 

– 

– 

 7 

 0 

– 

– 

– 

 0 

 59 

 0 

 0 

 8 

– 

– 

 7 

 2 

 0 

– 

– 

 0 

 65 

 9 

– 

 903 

 903 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

Programme 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

Commitments made 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriat. carried over to 
2021 

assigned 
revenue 

carry-
overs by 
decision 

Total 

  EUR million 

Appropriations lapsing 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

13=10+ 
11+12 

1 

2 

3 

4 

5=2+3 
+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

 3 

 963 

 83 % 

 129 

– 

 129 

 0 

– 

 74 

 74 

– 

– 

– 

– 

– 

– 

– 

European Maritime and Fisheries 
Fund (EMFF) 

1 165 

 960 

Fisheries Partnership 
Agreements (SFPAs) and 
Fisheries Management 
Organisations (RFMOs) 

 148 

 148 

Environment and climate action 
(LIFE) 

 593 

 590 

  Decentralised agencies 

 75 

 68 

  Other actions and measures 

– 

– 

Pilot projects and preparatory 
actions 

  Specific Actions 

  Total MFF Heading 2 

3 

Asylum, Migration and 
Integration Fund (AMF) 

  Consumer 

  Creative Europe 

Emergency Support within the 
Union (IES) 

 23 

 22 

– 

– 

1 406 

1 389 

 31 

 30 

 265 

 252 

3 450 

2 700 

Internal Security Fund 

 655 

 528 

IT systems 

Justice 

  Rights, Equality and Citizenship 

 0 

 47 

 72 

– 

 47 

 70 

  Union Civil protection Mechanism 

 526 

 511 

  Europe for Citizens 

  Food and feed 

 38 

 38 

 251 

 247 

– 

– 

– 

 148 

 100 % 

– 

 3 

 7 

– 

– 

– 

 592 

 100 % 

 75 

 99 % 

– 

– 

 22 

 99 % 

– 

– 

 1 

 1 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 1 

 1 

– 

– 

– 

62 730 

59 475 

 463 

 886 

60 823 

97 % 

 445 

 475 

 920 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 15 

1 404 

 100 % 

 1 

 11 

 30 

 99 % 

 263 

 99 % 

 2 

 0 

 2 

 333 

3 033 

 88 % 

 417 

 124 

 652 

 100 % 

– 

 0 

 1 

– 

– 

 47 

 100 % 

 71 

 98 % 

 14 

 525 

 100 % 

 0 

 2 

 38 

 100 % 

 249 

 99 % 

 2 

 0 

 0 

 1 

 1 

 0 

 2 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 2 

 0 

 2 

 417 

 2 

 0 

 0 

 1 

 1 

 0 

 2 

156 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

– 

 0 

– 

– 

 0 

 0 

– 

 0 

– 

 4 

 976 

 986 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

 0 

 0 

 0 

 0 

 0 

– 

 0 

– 

 0 

 0 

 0 

 0 

 0 

 0 

– 

– 

 0 

– 

 6 

 0 

 0 

 0 

– 

 0 

– 

 0 

 0 

 0 

 0 

 0 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

Programme 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

Commitments made 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriat. carried over to 
2021 

assigned 
revenue 

carry-
overs by 
decision 

Total 

  EUR million 

Appropriations lapsing 

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 

  Health 

  Decentralised agencies 

Pilot projects and preparatory 
actions 

  Specific Actions 

  Total MFF Heading 3 

 75 

 72 

1 206 

1 139 

 23 

 23 

 108 

 106 

8 152 

7 152 

4  Pre-accession assistance (IPA II) 

1 858 

1 609 

  Macro-financial Assistance (MFA) 

 0 

 0 

Guarantee Fund for External 
Actions 

 240 

 233 

  Union Civil Protection Mechanism 

 89 

 85 

EU Aid Volunteers initiative 
(EUAV) 

Fund for Sustainable 
Development (EFSD) 

European Neighbourhood 
Instrument (ENI) 

Development Cooperation 
Instrument (DCI) 

 4 

 4 

 105 

 25 

2 909 

2 845 

3 294 

3 206 

  Partnership Instrument (PI) 

 172 

 164 

Democracy and Human Rights 
(EIDHR) 

 179 

 172 

  Stability and Peace (IcSP) 

 413 

 408 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 2 

 47 

– 

 0 

 74 

 99 % 

1 186 

 98 % 

 23 

 100 % 

 106 

 99 % 

 550 

 172 

7 702 

94 % 

1 780 

 96 % 

– 

 7 

 3 

 1 

 0 

 95 % 

 240 

 100 % 

 87 

 98 % 

 4 

 100 % 

 79 

 104 

 100 % 

 1 

 20 

 0 

 1 

 450 

 77 

– 

 0 

 1 

 0 

 0 

 16 

2 861 

 98 % 

 48 

 63 

3 268 

 99 % 

 25 

 3 

 4 

 4 

 168 

 98 % 

 176 

 98 % 

 413 

 100 % 

 4 

 3 

 1 

 6 

  Humanitarian aid 

2 103 

2 038 

 46 

 13 

2 097 

 100 % 

Common Foreign and Security 
Policy (CFSP) 

Nuclear Safety Cooperation 
(INSC) 

 402 

 336 

 33 

 33 

– 

– 

 43 

 379 

 94 % 

 23 

– 

 33 

 99 % 

 0 

157 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 1 

 20 

 0 

 1 

 450 

 77 

– 

 0 

 1 

 0 

 0 

 48 

 25 

 4 

 3 

 1 

 6 

 23 

 0 

 0 

 0 

 0 

 0 

 1 

 1 

 0 

– 

– 

– 

– 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

 0 

 0 

 0 

 0 

– 

– 

– 

– 

– 

 0 

 0 

 0 

 0 

 0 

– 

– 

– 

Total 

13=10+ 
11+12 

 0 

 0 

 0 

 0 

 1 

 1 

 0 

– 

– 

– 

– 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

Programme 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

Commitments made 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriat. carried over to 
2021 

assigned 
revenue 

carry-
overs by 
decision 

Total 

  EUR million 

Appropriations lapsing 

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 

  Decentralised agencies 

  Other actions and programmes 

Pilot projects and preparatory 
actions 

 21 

 327 

 1 

 21 

 82 

– 

  Specific Actions 

 88 

 88 

– 

– 

 1 

– 

– 

 21 

 99 % 

 146 

 228 

 70 % 

– 

 0 

 1 

 98 % 

 88 

 99 % 

 0 

 98 

 0 

 1 

  Total MFF Heading 4 

12 240 

11 349 

 47 

 555 

11 950 

98 % 

 288 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 98 

 0 

 1 

 288 

– 

 3 

– 

– 

– 

 0 

– 

 0 

 1 

 8 

 0 

– 

– 

 146 

 53 

– 

2 096 

 100 % 

 14 

 197 

 98 % 

– 

– 

– 

– 

– 

– 

– 

 3 

– 

– 

 231 

3 937 

 95 % 

 146 

 294 

4 319 

 93 % 

 142 

 540 

10 548 

95 % 

 291 

 85 

 85 

 226 

 116 

 376 

 178 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 2 

 1 % 

 13 

1 106 

 100 % 

– 

1 108 

85 % 

 13 

158 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 13 

 177 

– 

– 

 13 

 177 

Total 

13=10+ 
11+12 

 0 

 0 

– 

 0 

 2 

 8 

 0 

– 

– 

 54 

 122 

 184 

– 

– 

– 

– 

– 

– 

 185 

– 

 185 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

– 

– 

 0 

 0 

– 

– 

– 

 1 

 6 

 6 

– 

– 

– 

– 

– 

– 

 8 

– 

 8 

5  Pensions 

  European schools 

  Decentralised agencies 

Pilot projects and preparatory 
actions 

Commission administrative 
expenditure 

Administrative expenditure of 
Other Institutions 
  Total MFF Heading 5 

6  Compensations 

  Total MFF Heading 6 

8  Negative reserve 

  Deficit carried over 

  Total MFF Heading 8 

9  Emergency Aid Reserve (EAR) 

European Globalisation 
Adjustment Fund (EGF) 

European Union Solidarity Fund 
(EUSF) 

2 104 

2 096 

 200 

 183 

– 

– 

– 

– 

4 137 

3 705 

4 667 

4 024 

11 108 

10 009 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 200 

 2 

1 106 

1 057 

  Total MFF Heading 9 

1 306 

1 059 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

 49 

 49 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

Programme 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

Commitments made 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriat. carried over to 
2021 

assigned 
revenue 

carry-
overs by 
decision 

Total 

  EUR million 

Appropriations lapsing 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

13=10+ 
11+12 

1 

2 

3 

4 

5=2+3 
+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

O  Innovation Fund (IF) 

  Total MFF Heading O 

1 337 

1 337 

– 

– 

– 

– 

 5 

 5 

 5 

 5 

 0 % 

1 332 

0 % 

1 332 

– 

– 

1 332 

1 332 

– 

– 

– 

– 

– 

– 

– 

– 

  Total 

187 742  172 933 

1 078 

7 688  181 699 

97 % 

4 038 

 582 

4 620 

 369 

 4 

1 050 

1 423 

159 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.9.  DETAILED MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS 

Annual accounts of the European Union 2020 

Payments made 

Appropriations carried over to 2021 

Appropriations lapsing 

EUR million 

Programme 

Total 
appropr. 
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

Total 

% 

autom. 
carry 
overs 

carry-
overs by 
decis. 

assigned 
revenue 

Total 

5=2+ 
3+4 

6=5/1 

7 

8 

9 

from 
final 
adopted 
budge 

from 
carry-
overs 

from 
assigned 
revenue 

11 

12 

13 

Total 

14=11+ 
12+13 

1 

European Fund Strategic 
Investments (EFSI) 

European satellite 
navigation 
(EGNOS/Galileo) 

International 
Thermonuclear Reactor 
(ITER) 

European Earth 
Observation Progr 
(Copernicus) 

European Solidarity Corps 
(ESC) 

European Defense 
Industrial Development 
Programme (EDIDP) 

Nuclear Safety and 
Decommissioning 

1 287 

1 103 

– 

 156 

1 259 

 98 % 

1 247 

 971 

 2 

 30 

1 003 

 80 % 

0 

 1 

 684 

 637 

 0 

 1 

 639 

 93 % 

 1 

 569 

 551 

 144 

 125 

 178 

 176 

 117 

 117 

 2 

 3 

 2 

– 

 14 

 566   100 % 

 6 

 134 

 92 % 

– 

– 

 178   100 % 

 117   100 % 

  Horizon 2020 

16 470 

11 524 

 69 

1 615 

13 207 

 80 % 

Euratom Research and 
Training Programme 

Competitiveness 
enterprises and SME's 
(COSME) 

Education, Training and 
Sport (Erasmus+) 

Employment and Social 
Innovation (EaSI) 

Customs, Fiscalis and 
Anti-Fraud 

 519 

 302 

 29 

 13 

 344 

 66 % 

 549 

 486 

 2 

 35 

 522 

 95 % 

3 543 

2 742 

 181 

 96 

 160 

 143 

 7 

 0 

 0 

 320 

3 068 

 87 % 

 37 

 134 

 74 % 

 9 

 152 

 95 % 

160 

 2 

 2 

 0 

– 

 83 

 31 

 2 

 7 

 1 

 0 

 44 

 45 

 0 

 0 

10=7+ 
8+9 

 28 

 28 

 242 

 244 

 0 

 2 

 9 

 11 

 0 

– 

 0 

– 

3 160 

3 243 

– 

– 

– 

– 

– 

– 

– 

– 

 12 

 124 

 167 

– 

– 

– 

– 

 25 

 27 

 467 

 474 

 36 

 37 

 6 

 6 

 0 

 0 

– 

 0 

 0 

 0 

 0 

 0 

 8 

 1 

 0 

 0 

 1 

 2 

 0 

 0 

 0 

– 

 10 

 7 

 0 

 0 

 1 

 0 

– 

 0 

– 

– 

– 

– 

– 

 1 

 0 

 0 

 0 

 8 

– 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 19 

 8 

 0 

 1 

 10 

 2 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

Payments made 

Appropriations carried over to 2021 

Appropriations lapsing 

EUR million 

Programme 

Total 
appropr. 
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

Total 

% 

autom. 
carry 
overs 

carry-
overs by 
decis. 

assigned 
revenue 

Total 

5=2+ 
3+4 

6=5/1 

7 

8 

9 

  CEF - Energy 

 399 

 389 

  CEF - Transport 

1 250 

1 224 

CEF - Information & 
Communications 
Technology (ICT) 

Energy projects for 
economic recovery 
(EERP) 

 246 

 240 

 33 

 30 

  Decentralised agencies 

 401 

 377 

Other actions and 
programmes 

Pilot projects and 
preparatory actions 

Specific competences of 
the Commission 

Regional convergence 
(Less developed regions) 

 557 

 172 

 66 

 64 

 127 

 120 

 0 

 1 

 0 

– 

– 

 1 

– 

– 

 1 

 12 

 390 

 98 % 

1 237 

 99 % 

 5 

 246   100 % 

 0 

 30 

 92 % 

 17 

 77 

 1 

 2 

 394 

 98 % 

 250 

 45 % 

 65 

 98 % 

 122 

 97 % 

29 990 

28 362 

– 

1 587 

29 949   100 % 

  Transition regions 

5 097 

4 981 

Competitiveness (More 
developed regions) 

Outermost and sparsely 
populated regions 

9 434 

8 697 

 319 

 300 

  Cohesion fund 

10 165 

8 889 

European territorial 
cooperation 

1 671 

1 516 

– 

– 

– 

– 

– 

 116 

5 097   100 % 

 737 

9 434   100 % 

 19 

 319   100 % 

1 276 

10 165   100 % 

 155 

1 671   100 % 

  Technical assistance 

 235 

 202 

 11 

European Aid to the Most 
Deprived (FEAD) 

 522 

 519 

 0 

 4 

 3 

 217 

 92 % 

 14 

 522   100 % 

 0 

161 

 1 

 1 

 1 

0 

0 

 1 

0 

0 

0 

0 

0 

0 

0 

0 

from 
final 
adopted 
budge 

from 
carry-
overs 

from 
assigned 
revenue 

11 

12 

13 

Total 

14=11+ 
12+13 

 0 

 0 

 0 

 1 

 0 

 2 

 1 

 2 

– 

– 

– 

– 

– 

– 

 1 

 0 

 0 

 1 

 0 

– 

– 

 1 

– 

– 

– 

– 

– 

– 

– 

– 

 2 

 0 

– 

– 

 0 

– 

– 

 0 

 0 

 0 

– 

 0 

– 

– 

– 

– 

 0 

– 

 0 

 1 

 0 

 1 

 0 

 3 

 1 

 2 

– 

 0 

– 

– 

– 

– 

 3 

 0 

10=7+ 
8+9 

 7 

 12 

 9 

 13 

 0 

 1 

 2 

 6 

 2 

 6 

 303 

 304 

 0 

 2 

 1 

 2 

 41 

 41 

 0 

– 

– 

– 

– 

 0 

– 

 0 

– 

– 

– 

– 

 15 

 0 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

Payments made 

Appropriations carried over to 2021 

Appropriations lapsing 

EUR million 

Total 
appropr. 
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

Total 

% 

autom. 
carry 
overs 

carry-
overs by 
decis. 

assigned 
revenue 

Total 

5=2+ 
3+4 

6=5/1 

7 

8 

9 

from 
final 
adopted 
budge 

from 
carry-
overs 

from 
assigned 
revenue 

11 

12 

13 

Total 

14=11+ 
12+13 

 665 

 539 

1 506 

1 502 

 4 

 4 

– 

– 

– 

 63 

 602 

 91 % 

 3 

 0 

1 505   100 % 

 4 

 98 % 

0 

– 

0 

– 

– 

– 

  Total MFF Heading 1 

88 334 

77 097 

 129 

6 316 

83 541 

95 % 

 149 

 12 

4 579 

4 740 

 21 

 23 

45 018 

42 919 

 664 

 873 

44 456 

 99 % 

 18 

 475 

 56 

 548 

14 852 

13 938 

 913 

 760 

 2 

 1 

 670 

14 609 

 98 % 

 110 

 871 

 95 % 

 2 

 1 

 144 

 144 

– 

– 

 144   100 % 

0 

– 

– 

– 

– 

– 

Programme 

Youth Employment 
initiative 

Connecting Europe 
Facility (CEF) 

Pilot projects and 
preparatory actions 

2 

European Agricultural 
Guarantee Fund (EAGF) 

Agricultural Fund Rural 
Development (EAFRD) 

European Maritime and 
Fisheries Fund (EMFF) 

Fisheries Partnership 
Agreements (SFPAs) and 
Fisheries Management 
Organisations (RFMOs) 

Environment and climate 
action (LIFE) 

10=7+ 
8+9 

 63 

 63 

 1 

– 

 1 

– 

 240 

 242 

 41 

 42 

 0 

 1 

– 

– 

– 

 4 

 1 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

– 

– 

– 

 8 

 1 

 0 

 6 

 0 

 0 

– 

– 

 0 

 9 

 0 

– 

 0 

 0 

 0 

– 

 0 

– 

 9 

 0 

 0 

 0 

 0 

– 

– 

– 

– 

 6 

 0 

 0 

 0 

– 

 0 

– 

 0 

– 

 0 

– 

 0 

 0 

– 

 0 

 0 

 53 

 14 

 1 

 0 

– 

 0 

 0 

– 

 0 

– 

 16 

 0 

 0 

 1 

 435 

 426 

 4 

  Decentralised agencies 

 75 

 68 

Other actions and 
measures 

Pilot projects and 
preparatory actions 

  Specific Actions 

– 

 9 

– 

– 

 9 

– 

– 

– 

– 

– 

 2 

 7 

– 

– 

– 

 431 

 99 % 

 4 

 75 

 99 % 

– 

– 

 9 

 99 % 

– 

– 

0 

0 

0 

0 

  Total MFF Heading 2 

61 448 

58 263 

 670 

1 662 

60 595 

99 % 

 24 

 475 

 338 

 837 

3 

Asylum, Migration and 
Integration Fund (AMF) 

  Consumer 

1 142 

1 121 

 31 

 29 

  Creative Europe 

 216 

 198 

 1 

 0 

 1 

 15 

1 137   100 % 

 1 

 7 

 30 

 96 % 

 206 

 95 % 

 2 

 1 

 2 

– 

– 

– 

 2 

 0 

 7 

 4 

 1 

 9 

162 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

Programme 

Payments made 

Appropriations carried over to 2021 

Appropriations lapsing 

Total 
appropr. 
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

Total 

% 

autom. 
carry 
overs 

carry-
overs by 
decis. 

assigned 
revenue 

Total 

5=2+ 
3+4 

6=5/1 

7 

8 

9 

10=7+ 
8+9 

from 
final 
adopted 
budge 

from 
carry-
overs 

from 
assigned 
revenue 

11 

12 

13 

Total 

14=11+ 
12+13 

EUR million 

Emergency Support 
within the Union (IES) 

3 360 

2 231 

Internal Security Fund 

 616 

 451 

IT systems 

Justice 

Rights, Equality and 
Citizenship 

Union Civil protection 
Mechanism 

 0 

 55 

 80 

– 

 51 

 75 

 203 

 194 

  Europe for Citizens 

 26 

 25 

  Food and feed 

  Health 

 237 

 232 

 65 

 59 

  Decentralised agencies 

1 195 

1 126 

Pilot projects and 
preparatory actions 

  Specific Actions 

 11 

 94 

 11 

 91 

  Total MFF Heading 3 

7 331 

5 896 

4 

Pre-accession assistance 
(IPA II) 

Macro-financial 
Assistance (MFA) 

Guarantee Fund for 
External Actions 

Union Civil Protection 
Mechanism 

EU Aid Volunteers 
initiative (EUAV) 

Fund for Sustainable 
Development (EFSD) 

2 150 

1 688 

 15 

 15 

 240 

 233 

 40 

 21 

 5 

 5 

 199 

 25 

 0 

 1 

– 

 0 

 0 

– 

 0 

 1 

 1 

– 

– 

 1 

 7 

 5 

– 

– 

– 

– 

– 

 333 

2 565 

 76 % 

 14 

 467 

 76 % 

– 

 0 

 1 

 8 

 0 

 1 

 2 

– 

– 

 52 

 95 % 

 76 

 95 % 

 202   100 % 

 25 

 98 % 

 234 

 99 % 

 62 

 95 % 

 47 

1 173 

 98 % 

 0 

 0 

 11   100 % 

 92 

 98 % 

– 

 2 

0 

 0 

 1 

0 

 0 

 1 

 1 

0 

0 

 1 

 379 

 417 

 795 

– 

– 

– 

– 

– 

– 

– 

– 

 2 

– 

– 

 147 

 149 

 0 

 0 

 1 

 1 

 0 

 2 

 1 

 0 

 1 

 2 

 1 

 0 

 3 

 2 

 20 

 22 

 0 

 1 

 0 

 2 

 430 

6 333 

86 % 

 11 

 381 

 600 

 991 

 236 

1 930 

 90 % 

 7 

– 

 7 

 1 

 0 

 15   100 % 

 240   100 % 

 21 

 53 % 

 5 

 87 % 

 174 

 199   100 % 

163 

0 

– 

0 

– 

– 

– 

– 

– 

 17 

– 

– 

 212 

 219 

– 

 0 

 2 

 1 

– 

– 

 0 

 19 

 1 

– 

– 

 0 

– 

 2 

 2 

– 

 0 

 0 

 1 

 0 

– 

 0 

 5 

 1 

– 

– 

– 

– 

– 

 0 

 0 

– 

 0 

 0 

– 

 0 

 0 

 0 

– 

– 

 0 

 2 

 1 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

 0 

– 

 0 

 0 

– 

 0 

 0 

 0 

– 

– 

– 

– 

– 

 0 

 0 

– 

 2 

 2 

– 

 0 

 0 

 1 

 0 

– 

 0 

 7 

 2 

– 

– 

– 

– 

– 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Programme 

European Neighbourhood 
Instrument (ENI) 

Development Cooperation 
Instrument (DCI) 

Partnership Instrument 
(PI) 

Democracy and Human 
Rights (EIDHR) 

Annual accounts of the European Union 2020 

Payments made 

Appropriations carried over to 2021 

Appropriations lapsing 

Total 
appropr. 
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

Total 

% 

autom. 
carry 
overs 

carry-
overs by 
decis. 

assigned 
revenue 

Total 

5=2+ 
3+4 

6=5/1 

7 

8 

9 

10=7+ 
8+9 

from 
final 
adopted 
budge 

from 
carry-
overs 

from 
assigned 
revenue 

11 

12 

13 

Total 

14=11+ 
12+13 

EUR million 

2 681 

2 600 

 6 

 43 

2 649 

 99 % 

 5 

3 112 

2 954 

 12 

 77 

3 043 

 98 % 

 11 

 27 

 32 

 0 

 0 

 0 

 140 

 130 

 161 

 147 

  Stability and Peace (IcSP) 

 389 

 376 

  Humanitarian aid 

1 956 

1 609 

Common Foreign and 
Security Policy (CFSP) 
Nuclear Safety 
Cooperation (INSC) 

  Decentralised agencies 

Other actions and 
programmes 

Pilot projects and 
preparatory actions 

 399 

 333 

 16 

 21 

 331 

 15 

 20 

 87 

 3 

 3 

  Specific Actions 

 69 

 67 

 0 

 2 

 3 

 5 

 0 

 0 

– 

 0 

– 

– 

 4 

 3 

 4 

 134 

 96 % 

 152 

 95 % 

 382 

 98 % 

 304 

1 918 

 98 % 

 56 

 390 

 98 % 

 0 

 0 

 15 

 92 % 

 20 

 99 % 

 140 

 227 

 68 % 

– 

 0 

 3 

 87 % 

 68 

 98 % 

 0 

 4 

 4 

 5 

 0 

 1 

0 

– 

0 

0 

  Total MFF Heading 4 

11 928 

10 328 

 35 

1 049 

11 412 

96 % 

 37 

 17 

 454 

 508 

5  Pensions 

2 104 

2 096 

  European schools 

 201 

 183 

  Decentralised agencies 

Pilot projects and 
preparatory actions 

– 

 4 

– 

 3 

– 

 0 

– 

 0 

– 

2 096   100 % 

 13 

 197 

 98 % 

– 

– 

– 

– 

 4 

 99 % 

 0 

 0 

– 

0 

– 

– 

– 

 0 

– 

 4 

– 

– 

 0 

 4 

– 

 0 

164 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 57 

 68 

 4 

 4 

 3 

 4 

 8 

 6 

 32 

 37 

 8 

 0 

 0 

 8 

 1 

 0 

 105 

 105 

 0 

 0 

 0 

 0 

 0 

 1 

 0 

 0 

 0 

 0 

 0 

– 

 0 

 0 

 1 

 4 

 8 

 0 

– 

 0 

 1 

 0 

 0 

 1 

 1 

 0 

 0 

– 

 0 

– 

– 

 4 

– 

 0 

– 

– 

 0 

– 

 0 

 0 

– 

– 

– 

– 

– 

– 

– 

 1 

 0 

– 

– 

– 

 1 

 1 

 1 

 1 

 1 

 1 

 0 

 0 

– 

 0 

 0 

 1 

 8 

 8 

 0 

– 

 0 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Programme 

Commission 
administrative 
expenditure 

Administrative 
expenditure of Other 
Institutions 

Annual accounts of the European Union 2020 

Payments made 

Appropriations carried over to 2021 

Appropriations lapsing 

Total 
appropr. 
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

Total 

% 

autom. 
carry 
overs 

carry-
overs by 
decis. 

assigned 
revenue 

Total 

5=2+ 
3+4 

6=5/1 

7 

8 

9 

10=7+ 
8+9 

from 
final 
adopted 
budge 

from 
carry-
overs 

from 
assigned 
revenue 

11 

12 

13 

Total 

14=11+ 
12+13 

4 464 

3 393 

 307 

 189 

3 889 

 87 % 

 311 

– 

 188 

 499 

 53 

 21 

 2 

 76 

EUR million 

5 168 

3 435 

 440 

 258 

4 134 

 80 % 

 585 

 85 

 182 

 852 

 120 

 59 

  Total MFF Heading 5 

11 941 

9 111 

 748 

 460 

10 319 

86 % 

 895 

 85 

 375 

1 355 

 182 

 80 

6  Compensations 

  Total MFF Heading 6 

8  Negative reserve 

  Deficit carried over 

  Total MFF Heading 8 

9 

Emergency Aid Reserve 
(EAR) 

European Globalisation 
Adjustment Fund (EGF) 

European Union Solidarity 
Fund (EUSF) 

– 

– 

– 

– 

– 

– 

 22 

– 

– 

– 

– 

– 

– 

– 

1 106 

1 106 

  Total MFF Heading 9 

1 128 

1 106 

O  Innovation Fund (IF) 

  Total MFF Heading O 

1 337 

1 337 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

 2 

– 

 2 

 1 

 1 

– 

– 

– 

– 

– 

– 

– 

- 

– 

– 

- 

– 

 2 

 11 % 

1 106   100 % 

1 108 

98 % 

 1 

 1 

 0 % 

0 % 

– 

– 

0 

0 

0 

0 

 0 

0 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 13 

 13 

– 

– 

 13 

 13 

1 336 

1 336 

1 336 

1 336 

– 

– 

– 

– 

– 

– 

 0 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

 0 

– 

– 

 3 

 5 

– 

– 

– 

– 

– 

– 

 6 

– 

 6 

– 

– 

 182 

 266 

– 

– 

– 

– 

– 

– 

 6 

– 

 6 

– 

– 

  Total 

183 446  161 801 

1 589 

9 920  173 310  94 % 

1 116 

 969 

7 694 

9 779 

 221 

 115 

 20 

 357 

165 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.10.  DETAILED MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) 

Annual accounts of the European Union 2020 

Programme 

Commitments outstanding at the end of previous 
year 

Commitments of the current year 

Commitm. 
carried 
forward from 
previous year 

Decommitm./ 
Revaluations/ 
Cancellations 

Payments 

Commitm. 
outstanding 
at year-end 

Commitm. 
made 
during the 
year 

Payments 

Cancellation 
of commitm. 
which cannot 
be carried 
over 

Commitm. 
outstanding 
at year-end 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
the year 

1 

2 

3 

4=1+2+3 

5 

6 

7 

8=5+6+7 

9=4+8 

1  European Fund Strategic Investments (EFSI) 

1 905 

 (0) 

(1 123) 

 782 

 321 

 (136) 

  European satellite navigation (EGNOS/Galileo) 

 957 

 (2) 

 (518) 

 437 

1 312 

 (486) 

– 

– 

 185 

 826 

 967 

1 263 

International Thermonuclear Reactor (ITER) 

1 305 

 (0) 

 (580) 

 725 

 396 

 (59) 

 (1) 

 337 

1 062 

European Earth Observation Progr 
(Copernicus) 

  European Solidarity Corps (ESC) 

European Defense Industrial Development 
Programme (EDIDP) 

  Nuclear Safety and Decommissioning 

 507 

 55 

 245 

 583 

 (1) 

 (468) 

 (1) 

 (16) 

 (0) 

 (178) 

 38 

 38 

 67 

– 

 (114) 

 469 

 663 

 (98) 

 173 

 (118) 

 255 

 147 

 (0) 

 (3) 

  Horizon 2020 

22 356 

 (595) 

(8 146) 

13 615 

16 411 

(5 061) 

  Euratom Research and Training Programme 

Competitiveness enterprises and SME's 
(COSME) 

  Education, Training and Sport (Erasmus+) 

  Employment and Social Innovation (EaSI) 

  Customs, Fiscalis and Anti-Fraud 

  CEF - Energy 

  CEF - Transport 

CEF - Information & Communications 
Technology (ICT) 

  Energy projects for economic recovery (EERP) 

 295 

 993 

 997 

 230 

 175 

2 721 

5 556 

 490 

 172 

 (8) 

 (122) 

 166 

 415 

 (222) 

 (23) 

 (456) 

 514 

 448 

 (66) 

 (62) 

 (446) 

 488 

3 481 

(2 623) 

 (18) 

 (86) 

 (8) 

 (104) 

 125 

 63 

 164 

 (47) 

 144 

 (49) 

 (14) 

 (282) 

2 424 

1 282 

 (107) 

 (95) 

(1 191) 

4 270 

2 584 

 (45) 

 (18) 

 (169) 

 302 

 216 

 (77) 

 (48) 

 (30) 

 94 

 0 

 (0) 

– 

– 

– 

– 

 (5) 

 (0) 

– 

– 

– 

– 

– 

– 

– 

– 

 564 

 55 

 255 

 144 

 602 

 93 

 322 

 613 

11 345 

24 959 

 192 

 382 

 858 

 117 

 96 

1 175 

2 539 

 139 

– 

 358 

 896 

1 346 

 243 

 159 

3 599 

6 809 

 442 

 94 

166 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

Programme 

Commitments outstanding at the end of previous 
year 

Commitments of the current year 

Commitm. 
carried 
forward from 
previous year 

Decommitm./ 
Revaluations/ 
Cancellations 

Payments 

Commitm. 
outstanding 
at year-end 

Commitm. 
made 
during the 
year 

Payments 

Cancellation 
of commitm. 
which cannot 
be carried 
over 

Commitm. 
outstanding 
at year-end 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
the year 

1 

2 

3 

4=1+2+3 

5 

6 

7 

8=5+6+7 

9=4+8 

  Decentralised agencies 

  Other actions and programmes 

  Pilot projects and preparatory actions 

  Specific competences of the Commission 

Regional convergence (Less developed 
regions) 

 51 

 410 

 133 

 166 

 (10) 

 (34) 

 6 

 403 

 (360) 

 (30) 

 (177) 

 (5) 

 (60) 

 203 

 69 

 278 

 (73) 

 83 

 (5) 

 (14) 

 (85) 

 68 

 138 

 (38) 

88 615 

 (678) 

(29 709) 

58 227 

29 726 

 (240) 

  Transition regions 

19 984 

 (25) 

(4 637) 

15 322 

6 147 

 (460) 

  Competitiveness (More developed regions) 

27 824 

 (112) 

(8 579) 

19 133 

10 819 

 (854) 

  Outermost and sparsely populated regions 

 618 

 (0) 

 (304) 

 313 

 236 

 (15) 

  Cohesion fund 

28 582 

 (10) 

(9 731) 

18 841 

8 404 

 (433) 

  European territorial cooperation 

  Technical assistance 

  European Aid to the Most Deprived (FEAD) 

  Youth Employment initiative 

  Connecting Europe Facility (CEF) 

  Pilot projects and preparatory actions 

5 142 

 273 

1 390 

1 450 

6 439 

 10 

 (1) 

(1 666) 

3 475 

2 012 

 (5) 

 (11) 

 (106) 

 (1) 

 (502) 

– 

 (577) 

 156 

 887 

 874 

 579 

 252 

 (20) 

 (26) 

 282 

 (110) 

 (0) 

 (83) 

(1 473) 

4 883 

1 784 

 (32) 

 (0) 

 (4) 

 6 

 6 

 (0) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 44 

 206 

 79 

 100 

 50 

 408 

 147 

 168 

29 486 

87 714 

5 687 

21 009 

9 965 

29 098 

 221 

 535 

7 971 

2 008 

 172 

 560 

 227 

1 752 

 5 

26 812 

5 483 

 327 

1 446 

1 101 

6 635 

 11 

  Total MFF Heading 1 

220 627 

(1 875) 

(71 673) 

147 079 

89 563 

(11 868) 

 (6) 

77 689 

224 769 

2  European Agricultural Guarantee Fund (EAGF) 

 432 

 (5) 

 (262) 

 165 

44 315 

(44 193) 

  Agricultural Fund Rural Development (EAFRD) 

35 108 

 (19) 

(14 154) 

20 935 

14 709 

 (455) 

  European Maritime and Fisheries Fund (EMFF) 

3 441 

 (74) 

 (851) 

2 516 

 963 

 (20) 

– 

– 

– 

 122 

 286 

14 253 

35 189 

 943 

3 459 

167 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

Programme 

Commitments outstanding at the end of previous 
year 

Commitments of the current year 

Commitm. 
carried 
forward from 
previous year 

Decommitm./ 
Revaluations/ 
Cancellations 

Payments 

Commitm. 
outstanding 
at year-end 

Commitm. 
made 
during the 
year 

Payments 

Cancellation 
of commitm. 
which cannot 
be carried 
over 

Commitm. 
outstanding 
at year-end 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
the year 

1 

2 

3 

4=1+2+3 

5 

6 

7 

8=5+6+7 

9=4+8 

Fisheries Partnership Agreements (SFPAs) and 
Fisheries Management Organisations (RFMOs) 

 19 

 (2) 

 (14) 

 4 

 148 

 (130) 

  Environment and climate action (LIFE) 

1 841 

 (22) 

 (403) 

1 417 

 592 

 (29) 

  Decentralised agencies 

  Other actions and measures 

  Pilot projects and preparatory actions 

  Specific Actions 

  Total MFF Heading 2 

 3 

– 

 31 

– 

 (0) 

– 

 (1) 

– 

 (3) 

– 

 (8) 

– 

– 

– 

 21 

– 

 75 

 (72) 

– 

 22 

– 

– 

 (1) 

– 

40 876 

 (122) 

(15 695) 

25 058 

60 823 

(44 900) 

3  Asylum, Migration and Integration Fund (AMF) 

2 870 

 (15) 

(1 048) 

1 807 

1 404 

  Consumer 

  Creative Europe 

  Emergency Support within the Union (IES) 

Internal Security Fund 

IT systems 

Justice 

  Rights, Equality and Citizenship 

  Union Civil protection Mechanism 

  Europe for Citizens 

  Food and feed 

  Health 

  Decentralised agencies 

  Pilot projects and preparatory actions 

 43 

 256 

 2 

1 711 

 10 

 87 

 108 

 67 

 24 

 357 

 138 

 395 

 29 

– 

3 033 

(2 565) 

 (458) 

1 248 

 652 

 18 

 154 

 10 

 48 

 48 

 45 

 11 

 140 

 85 

 190 

 16 

 (90) 

 (10) 

 30 

 263 

 (112) 

 (9) 

– 

 (25) 

 (33) 

– 

 47 

 71 

 525 

 (184) 

 38 

 249 

 74 

 (14) 

 (55) 

 (15) 

1 186 

 (968) 

 23 

– 

 (4) 

 (8) 

 (2) 

 (5) 

 (0) 

 (20) 

 (95) 

 (0) 

– 

 (12) 

 (27) 

 (17) 

 (43) 

 (4) 

 (1) 

 (18) 

 (12) 

 (38) 

 (179) 

 (7) 

 (0) 

 (47) 

 (205) 

 (1) 

 (11) 

168 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 18 

 21 

 564 

1 981 

 3 

– 

 22 

– 

 3 

– 

 43 

– 

15 923 

40 982 

1 314 

3 122 

 21 

 152 

 469 

 644 

– 

 22 

 37 

 341 

 24 

 194 

 59 

 218 

 23 

 39 

 306 

 469 

1 891 

 10 

 69 

 86 

 386 

 35 

 334 

 144 

 408 

 39 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

Programme 

Commitments outstanding at the end of previous 
year 

Commitments of the current year 

Commitm. 
carried 
forward from 
previous year 

Decommitm./ 
Revaluations/ 
Cancellations 

Payments 

Commitm. 
outstanding 
at year-end 

Commitm. 
made 
during the 
year 

Payments 

Cancellation 
of commitm. 
which cannot 
be carried 
over 

Commitm. 
outstanding 
at year-end 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
the year 

1 

2 

3 

4=1+2+3 

5 

6 

7 

8=5+6+7 

9=4+8 

  Specific Actions 

  Total MFF Heading 3 

4  Pre-accession assistance (IPA II) 

  Macro-financial Assistance (MFA) 

  Guarantee Fund for External Actions 

  Union Civil Protection Mechanism 

  EU Aid Volunteers initiative (EUAV) 

  Fund for Sustainable Development (EFSD) 

 86 

6 183 

8 481 

 35 

– 

 17 

 28 

 95 

 (4) 

 (63) 

 19 

 106 

 (29) 

 (119) 

(2 225) 

3 839 

7 702 

(4 108) 

– 

– 

 (83) 

(1 698) 

6 701 

1 780 

 (232) 

 (0) 

 (20) 

 (15) 

– 

 (4) 

 (8) 

– 

 (4) 

 (3) 

– 

 (95) 

– 

– 

 9 

 17 

– 

 0 

 (0) 

 240 

 (240) 

 87 

 4 

 (18) 

 (1) 

 104 

 (104) 

  European Neighbourhood Instrument (ENI) 

7 995 

 (196) 

(1 983) 

5 815 

2 861 

 (666) 

  Development Cooperation Instrument (DCI) 

9 203 

 (155) 

(2 591) 

6 457 

3 268 

 (452) 

  Partnership Instrument (PI) 

  Democracy and Human Rights (EIDHR) 

  Stability and Peace (IcSP) 

 400 

 367 

 676 

 (3) 

 (112) 

 (24) 

 (112) 

 (49) 

 (237) 

  Humanitarian aid 

1 205 

 (30) 

 (804) 

  Common Foreign and Security Policy (CFSP) 

  Nuclear Safety Cooperation (INSC) 

  Decentralised agencies 

  Other actions and programmes 

  Pilot projects and preparatory actions 

  Specific Actions 

  Total MFF Heading 4 

 238 

 102 

 0 

 171 

 7 

 135 

 285 

 231 

 391 

 372 

 64 

 85 

– 

 168 

 176 

 (22) 

 (40) 

 413 

 (146) 

2 097 

(1 115) 

 379 

 (283) 

 33 

 21 

 (1) 

 (20) 

 (68) 

 (107) 

 (3) 

 (0) 

 (14) 

– 

 (27) 

 (42) 

 101 

 228 

 (185) 

 (1) 

 (2) 

 (2) 

 (45) 

 5 

 88 

 1 

 88 

 (1) 

 (23) 

 77 

3 594 

1 549 

 0 

– 

 70 

 3 

– 

 96 

7 433 

8 249 

 0 

– 

 78 

 20 

– 

2 195 

8 011 

2 816 

9 273 

 145 

 136 

 267 

 982 

 96 

 32 

 1 

 43 

– 

 65 

 430 

 368 

 658 

1 354 

 160 

 117 

 1 

 145 

 5 

 153 

– 

– 

– 

– 

– 

– 

– 

 (0) 

 (0) 

 (0) 

 (0) 

– 

– 

– 

– 

– 

– 

29 154 

 (672) 

(7 862) 

20 620 

11 950 

(3 550) 

 (1) 

8 400 

29 020 

169 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

Commitments outstanding at the end of previous 
year 

Commitments of the current year 

Commitm. 
carried 
forward from 
previous year 

Decommitm./ 
Revaluations/ 
Cancellations 

Payments 

Commitm. 
outstanding 
at year-end 

Commitm. 
made 
during the 
year 

Payments 

Cancellation 
of commitm. 
which cannot 
be carried 
over 

Commitm. 
outstanding 
at year-end 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
the year 

1 

2 

3 

4=1+2+3 

5 

6 

7 

8=5+6+7 

9=4+8 

– 

 0 

– 

 6 

 335 

 511 

 854 

– 

– 

– 

– 

– 

– 

 1 

– 

 1 

– 

– 

– 

 (0) 

– 

 (0) 

– 

 (0) 

– 

 (4) 

 (22) 

 (313) 

 (70) 

 (440) 

 (92) 

 (757) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 (0) 

 (0) 

– 

– 

 (0) 

 (0) 

– 

– 

– 

– 

– 

– 

– 

 2 

 1 

 2 

 5 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

2 096 

(2 096) 

 (0) 

 197 

 (196) 

– 

– 

– 

– 

3 937 

(3 577) 

4 319 

(3 694) 

10 548 

(9 563) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 2 

 (2) 

1 106 

(1 106) 

1 108 

(1 108) 

 5 

 5 

 (1) 

 (1) 

– 

– 

– 

 (0) 

0 

 (0) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 1 

– 

– 

 360 

 625 

 985 

– 

– 

– 

– 

– 

– 

 0 

– 

 0 

 4 

 4 

– 

 1 

– 

 2 

 360 

 627 

 990 

– 

– 

– 

– 

– 

– 

 0 

– 

 0 

 4 

 4 

297 695 

(2 881)  (98 213) 

196 601 

181 699  (75 096) 

 (7) 

106 596 

303 197 

Programme 

5  Pensions 

  European schools 

  Decentralised agencies 

  Pilot projects and preparatory actions 

  Commission administrative expenditure 

Administrative expenditure of Other 
Institutions 

  Total MFF Heading 5 

6  Compensations 

  Total MFF Heading 6 

8  Negative reserve 

  Deficit carried over 

  Total MFF Heading 8 

9  Emergency Aid Reserve (EAR) 

European Globalisation Adjustment Fund 
(EGF) 

  European Union Solidarity Fund (EUSF) 

  Total MFF Heading 9 

O  Innovation Fund (IF) 

  Total MFF Heading O 

  Total 

170 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.11.   DETAILED MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN 

Annual accounts of the European Union 2020 

Programme 

< 2014 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

Total 

EUR million 

1  European Fund Strategic Investments (EFSI) 

European satellite navigation (EGNOS/Galileo) 

International Thermonuclear Reactor (ITER) 

European Earth Observation Progr (Copernicus) 

European Solidarity Corps (ESC) 

European Defense Industrial Development Programme (EDIDP) 

Nuclear Safety and Decommissioning 

Horizon 2020 

Euratom Research and Training Programme 

Competitiveness enterprises and SME's (COSME) 

Education, Training and Sport (Erasmus+) 

Employment and Social Innovation (EaSI) 

Customs, Fiscalis and Anti-Fraud 

CEF - Energy 

CEF - Transport 

CEF - Information & Communications Technology (ICT) 

Energy projects for economic recovery (EERP) 

Decentralised agencies 

Other actions and programmes 

Pilot projects and preparatory actions 

Specific competences of the Commission 

Regional convergence (Less developed regions) 

Transition regions 

Competitiveness (More developed regions) 

Outermost and sparsely populated regions 

Cohesion fund 

European territorial cooperation 

Technical assistance 

– 

 0 

 155 

– 

– 

– 

 10 

 291 

 8 

 108 

 0 

 0 

– 

 1 

 2 

 0 

 94 

– 

 14 

– 

 0 

2 059 

 35 

 209 

– 

 263 

 97 

– 

– 

– 

– 

– 

– 

– 

 21 

 384 

 0 

 4 

 1 

 1 

 0 

 123 

 29 

 1 

– 

– 

 4 

– 

 0 

 93 

 14 

 45 

 0 

– 

– 

 0 

171 

– 

 23 

– 

 0 

– 

– 

 31 

 687 

 17 

 3 

 1 

 0 

 0 

 112 

 12 

 6 

– 

– 

 9 

 0 

 1 

 211 

 49 

 153 

 1 

 24 

– 

 21 

 3 

 10 

– 

 2 

– 

– 

 4 

 1 

– 

 2 

– 

– 

 596 

 169 

 200 

 2 

 9 

– 

 179 

 233 

 369 

 32 

 30 

 67 

 82 

 105 

 107 

 113 

 185 

 826 

 337 

 564 

 55 

 255 

 144 

 967 

1 263 

1 062 

 602 

 93 

 322 

 613 

1 077 

2 181 

3 298 

5 502 

11 539 

24 959 

 7 

 64 

 7 

 2 

 1 

 125 

 276 

 86 

– 

– 

 4 

 2 

 1 

 399 

 375 

 190 

 4 

 27 

 141 

 53 

 17 

 2 

 495 

 446 

 22 

– 

– 

 25 

 3 

 7 

 46 

 53 

 114 

 31 

 17 

 61 

 140 

 312 

 74 

 42 

 192 

 382 

 858 

 117 

 96 

 590 

 978 

1 175 

1 160 

2 344 

2 539 

 78 

– 

 0 

 39 

 18 

 16 

 70 

 179 

– 

 6 

 108 

 46 

 43 

– 

 44 

 206 

 79 

 100 

8 437 

19 123 

27 905 

29 486 

3 089 

2 768 

 57 

5 478 

6 565 

6 282 

5 687 

9 202 

9 965 

 85 

 166 

 221 

 358 

 896 

1 346 

 243 

 159 

3 599 

6 809 

 442 

 94 

 50 

 408 

 147 

 168 

87 714 

21 009 

29 098 

 535 

 152 

2 252 

5 511 

10 640 

7 971 

26 812 

– 

 12 

 338 

 15 

1 172 

1 868 

2 008 

 36 

 70 

 172 

5 483 

 327 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

Programme 

< 2014 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

Total 

EUR million 

European Aid to the Most Deprived (FEAD) 

Youth Employment initiative 

Connecting Europe Facility (CEF) 

Pilot projects and preparatory actions 

Total MFF Heading 1 

2  European Agricultural Guarantee Fund (EAGF) 

Agricultural Fund Rural Development (EAFRD) 

European Maritime and Fisheries Fund (EMFF) 

Fisheries Partnership Agreements (SFPAs) and Fisheries 
Management Organisations (RFMOs) 

Environment and climate action (LIFE) 

Decentralised agencies 

Other actions and measures 

Pilot projects and preparatory actions 

Specific Actions 

Total MFF Heading 2 

3  Asylum, Migration and Integration Fund (AMF) 

Consumer 

Creative Europe 

Emergency Support within the Union (IES) 

Internal Security Fund 

IT systems 

Justice 

Rights, Equality and Citizenship 

Union Civil protection Mechanism 

Europe for Citizens 

Food and feed 

Health 

Decentralised agencies 

Pilot projects and preparatory actions 

Specific Actions 

Total MFF Heading 3 

– 

– 

– 

 0 

– 

– 

 156 

– 

– 

 70 

 307 

 0 

 13 

 379 

 805 

 1 

 130 

 89 

 948 

 3 

 338 

 135 

 405 

 202 

 560 

 227 

1 214 

1 453 

1 752 

 2 

 1 

 5 

1 446 

1 101 

6 635 

 11 

3 347 

 878 

1 741 

4 079 

21 655 

46 203 

68 942 

77 924 

224 769 

– 

 0 

 60 

– 

 60 

– 

– 

 0 

– 

– 

– 

 1 

 9 

 44 

 110 

 122 

 286 

 198 

1 149 

1 064 

1 709 

6 163 

10 652 

14 253 

35 189 

 2 

– 

 2 

– 

 4 

– 

 479 

 942 

1 028 

 943 

3 459 

 1 

 1 

 2 

 18 

 21 

 71 

 135 

 139 

 189 

 474 

 340 

 574 

1 981 

– 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

– 

 1 

– 

– 

– 

 8 

– 

 0 

– 

 11 

– 

 3 

– 

 22 

– 

 3 

– 

 43 

– 

 120 

 271 

1 286 

1 209 

2 388 

7 633 

12 142 

15 934 

40 982 

 3 

– 

 0 

– 

 19 

– 

– 

– 

– 

 0 

 1 

 0 

– 

– 

– 

 24 

 0 

– 

– 

– 

 2 

– 

– 

 0 

– 

– 

 3 

 3 

– 

 1 

 0 

 9 

172 

 13 

 143 

 425 

 617 

 607 

1 314 

3 122 

 0 

 0 

– 

 5 

– 

 4 

 3 

 0 

– 

 3 

 4 

– 

 1 

 0 

 0 

 2 

– 

 3 

 7 

– 

 3 

 38 

– 

 58 

 148 

 482 

– 

 7 

 5 

 1 

 0 

 6 

 8 

– 

 2 

 0 

– 

 12 

 10 

 2 

 0 

 14 

 15 

 1 

 0 

 0 

 10 

 10 

 11 

 9 

 3 

 37 

 19 

 4 

 6 

 2 

 12 

 106 

– 

 534 

– 

 15 

 19 

 32 

 8 

 76 

 35 

 184 

 7 

 17 

 21 

 152 

 469 

 644 

– 

 22 

 37 

 341 

 24 

 194 

 59 

 218 

 23 

 77 

 39 

 306 

 469 

1 891 

 10 

 69 

 86 

 386 

 35 

 334 

 144 

 408 

 39 

 96 

 34 

 231 

 637 

1 251 

1 652 

3 594 

7 433 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4  Pre-accession assistance (IPA II) 

 429 

 155 

 380 

 821 

1 046 

1 365 

2 505 

1 549 

8 249 

Programme 

< 2014 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

Total 

EUR million 

Annual accounts of the European Union 2020 

Macro-financial Assistance (MFA) 

Guarantee Fund for External Actions 

Union Civil Protection Mechanism 

EU Aid Volunteers initiative (EUAV) 

Fund for Sustainable Development (EFSD) 

European Neighbourhood Instrument (ENI) 

Development Cooperation Instrument (DCI) 

Partnership Instrument (PI) 

Democracy and Human Rights (EIDHR) 

Stability and Peace (IcSP) 

Humanitarian aid 

Common Foreign and Security Policy (CFSP) 

Nuclear Safety Cooperation (INSC) 

Decentralised agencies 

Other actions and programmes 

Pilot projects and preparatory actions 

Specific Actions 

Total MFF Heading 4 

5  Pensions 

European schools 

Decentralised agencies 

Pilot projects and preparatory actions 

Commission administrative expenditure 

Administrative expenditure of Other Institutions 

Total MFF Heading 5 

6  Compensations 

Total MFF Heading 6 

8  Negative reserve 

Deficit carried over 

Total MFF Heading 8 

– 

– 

– 

– 

– 

 562 

 320 

 10 

 4 

 4 

– 

 0 

 4 

– 

 4 

 1 

 0 

– 

– 

– 

 2 

– 

 198 

 205 

 15 

 9 

 12 

– 

– 

 5 

– 

 6 

– 

 1 

– 

– 

– 

 0 

– 

 305 

 391 

 11 

 13 

 19 

 0 

– 

 9 

– 

 9 

 2 

 1 

– 

– 

 0 

 0 

– 

 609 

 577 

 24 

 15 

 33 

 0 

 1 

 9 

– 

 24 

 0 

 9 

– 

– 

 1 

 3 

– 

 849 

1 225 

 43 

 29 

 61 

 48 

 5 

 12 

– 

 13 

 1 

 16 

– 

– 

 2 

 4 

– 

1 488 

1 485 

 75 

 71 

 105 

 73 

 9 

 26 

– 

 14 

 1 

 15 

– 

– 

 6 

 7 

– 

 0 

– 

 70 

 3 

– 

1 805 

2 195 

2 229 

2 839 

 108 

 91 

 157 

 251 

 49 

 20 

– 

 31 

 1 

 45 

 145 

 136 

 267 

 982 

 96 

 32 

 1 

 43 

– 

 65 

 0 

– 

 78 

 20 

– 

8 011 

9 273 

 430 

 368 

 658 

1 354 

 160 

 117 

 1 

 145 

 5 

 153 

1 339 

 607 

1 140 

2 122 

3 351 

4 733 

7 304 

8 423 

29 020 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

0 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

0 

 0 

– 

– 

– 

– 

– 

 (0) 

 0 

– 

 2 

 1 

0 

 3 

– 

– 

– 

– 

– 

 0 

 1 

– 

– 

 360 

 627 

 987 

– 

– 

– 

– 

– 

– 

 1 

– 

 2 

 360 

 627 

 990 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

173 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

Programme 

< 2014 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

Total 

9  Emergency Aid Reserve (EAR) 

European Globalisation Adjustment Fund (EGF) 

European Union Solidarity Fund (EUSF) 

Total MFF Heading 9 

O 

Innovation Fund (IF) 

Total MFF Heading O 

Total 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 (0) 

– 

 (0) 

– 

– 

– 

 0 

– 

 0 

 4 

 4 

– 

 0 

– 

 0 

 4 

 4 

4 830 

1 765 

4 201 

7 640 

28 030 

59 820 

90 044  106 867 

303 197 

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. 

174 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.12.  DETAILED MFF: OUTSTANDING COMMITMENTS BY APPROPRIATIONS TYPE 

Annual accounts of the European Union 2020 

From budget appropriations 

From assigned revenue appropriations 

Heading 

Commitm. 
carried 
forward 
from 2019 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

Amount 
remaining 
to be 
settled 

Commitm. 
carried 
forward 
from 2019 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

5=1+2+3-4 

6 

7 

8 

9 

Amount 
remaining 
to be 
settled 
10=6+7+8-
9 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
2020 

11=5+10 

1 

European Fund Strategic 
Investments (EFSI) 

European satellite navigation 
(EGNOS/Galileo) 

International Thermonuclear 
Reactor (ITER) 

European Earth Observation 
Progr (Copernicus) 

European Solidarity Corps 
(ESC) 

European Defense Industrial 
Development Programme 
(EDIDP) 

Nuclear Safety and 
Decommissioning 

1 877 

 (0) 

 173 

1 103 

 947 

 27 

– 

 148 

 156 

 19 

 967 

 793 

 (0) 

1 207 

 977 

1 023 

 164 

 (2) 

 105 

 27 

 240 

1 263 

1 289 

 (1) 

 367 

 638 

1 017 

 16 

 507 

 (1) 

 647 

 566 

 587 

 51 

 (1) 

 166 

 128 

 88 

 245 

 (0) 

 255 

 178 

 322 

 0 

 4 

– 

– 

– 

– 

– 

 29 

 16 

 7 

 0 

 1 

 0 

 6 

– 

 45 

 15 

 5 

 0 

 583 

– 

 147 

 117 

 613 

1 062 

 602 

 93 

 322 

 613 

  Horizon 2020 

20 078 

 (429) 

13 485 

11 815 

21 319 

2 278 

 (170) 

2 925 

1 392 

3 641 

24 959 

 245 

 (7) 

 389 

 331 

 296 

 900 

 (23) 

 418 

 482 

 812 

 50 

 93 

 (1) 

 (0) 

 26 

 30 

 13 

 40 

 62 

 84 

 358 

 896 

 817 

 (32) 

2 885 

2 679 

 990 

 180 

 (30) 

 595 

 389 

 356 

1 346 

Euratom Research and Training 
Programme 

Competitiveness enterprises 
and SME's (COSME) 

Education, Training and Sport 
(Erasmus+) 

Employment and Social 
Innovation (EaSI) 

Customs, Fiscalis and Anti-
Fraud 

 202 

 (17) 

 116 

 102 

 199 

 167 

 (8) 

 133 

 147 

 146 

  CEF - Energy 

2 674 

 (14) 

1 281 

 390 

  CEF - Transport 

5 374 

 (91) 

2 580 

1 188 

3 551 

6 675 

175 

 27 

 8 

 47 

 182 

 (1) 

 (0) 

– 

 (4) 

 49 

 11 

 1 

 4 

 32 

 6 

 0 

 49 

 44 

 13 

 48 

 133 

 243 

 159 

3 599 

6 809 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

From budget appropriations 

From assigned revenue appropriations 

Heading 

Commitm. 
carried 
forward 
from 2019 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

Amount 
remaining 
to be 
settled 

Commitm. 
carried 
forward 
from 2019 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

5=1+2+3-4 

6 

7 

8 

9 

CEF - Information & 
Communications Technology 
(ICT) 
Energy projects for economic 
recovery (EERP) 

Pilot projects and preparatory 
actions 

Specific competences of the 
Commission 

Regional convergence (Less 
developed regions) 

  Decentralised agencies 

 49 

 (9) 

 385 

 377 

 483 

 (17) 

 210 

 243 

 434 

 172 

 (48) 

– 

 30 

 6 

– 

 2 

 (1) 

– 

 (1) 

 94 

 49 

  Other actions and programmes 

 283 

 (19) 

 195 

 172 

 287 

 127 

 (11) 

 133 

 (5) 

 83 

 64 

 147 

 165 

 (14) 

 135 

 119 

 166 

 1 

 2 

– 

 (0) 

77 658 

 (669) 

29 147 

29 912 

76 224 

10 957 

 (10) 

 579 

  Transition regions 

17 678 

 (25) 

6 097 

5 091 

18 659 

2 306 

Competitiveness (More 
developed regions) 

Outermost and sparsely 
populated regions 

24 372 

 (112) 

10 623 

9 420 

25 463 

3 452 

 540 

 (0) 

 236 

 319 

 457 

 78 

  Cohesion fund 

24 375 

 (10) 

8 239 

9 963 

22 642 

4 207 

European territorial 
cooperation 

4 506 

 (1) 

2 012 

1 671 

4 847 

 636 

  Technical assistance 

 273 

 (11) 

European Aid to the Most 
Deprived (FEAD) 

1 361 

 (1) 

 278 

 579 

 216 

 522 

 323 

1 417 

 0 

 29 

  Youth Employment initiative 

 839 

– 

 157 

 567 

 429 

 611 

6 439 

 (83) 

1 781 

1 505 

6 632 

– 

 10 

 (0) 

 6 

 4 

 11 

Connecting Europe Facility 
(CEF) 
Pilot projects and preparatory 
actions 
Total Heading 1: Smart and 
inclusive growth 

– 

– 

– 

– 

– 

 (0) 

– 

– 

– 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
2020 

11=5+10 

 442 

 94 

 50 

 408 

 147 

 168 

Amount 
remaining 
to be 
settled 
10=6+7+8-
9 

 8 

– 

 1 

 121 

 0 

 2 

11 489 

87 714 

2 350 

21 009 

3 635 

29 098 

 78 

 535 

 2 

 0 

 17 

 78 

 0 

 3 

 37 

 6 

 14 

– 

 6 

 0 

 18 

 83 

– 

 3 

 50 

 197 

– 

 165 

 202 

4 170 

26 812 

– 

 4 

 1 

 96 

 3 

– 

 0 

– 

 35 

 0 

 636 

 4 

 30 

 672 

 3 

5 483 

 327 

1 446 

1 101 

6 635 

 11 

195 138 

(1 648) 

84 411 

81 035 

196 865 

25 490 

 (232) 

5 152 

2 506 

27 904 

224 769 

176 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

From budget appropriations 

From assigned revenue appropriations 

Heading 

Commitm. 
carried 
forward 
from 2019 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

Amount 
remaining 
to be 
settled 

Commitm. 
carried 
forward 
from 2019 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

5=1+2+3-4 

6 

7 

8 

9 

Amount 
remaining 
to be 
settled 
10=6+7+8-
9 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
2020 

11=5+10 

2 

European Agricultural 
Guarantee Fund (EAGF) 

Agricultural Fund Rural 
Development (EAFRD) 

European Maritime and 
Fisheries Fund (EMFF) 

Fisheries Partnership 
Agreements (SFPAs) and 
Fisheries Management 
Organisations (RFMOs) 

Environment and climate 
action (LIFE) 

  Decentralised agencies 

Pilot projects and preparatory 
actions 
Total Heading 2: Sustainable 
growth: natural resources 
Asylum, Migration and 
Integration Fund (AMF) 

3 

  Consumer 

  Creative Europe 

Emergency Support within the 
Union (IES) 

Internal Security Fund 

IT systems 

Justice 

 431 

 (5) 

43 441 

43 582 

 286 

35 108 

 (19) 

14 708 

14 609 

35 188 

 1 

 0 

3 027 

 (74) 

 960 

 871 

3 043 

 413 

– 

– 

– 

 19 

 (2) 

 148 

 144 

 21 

1 831 

 (21) 

 590 

 425 

1 974 

 3 

 31 

 (0) 

 (1) 

 68 

 22 

 67 

 9 

 3 

 43 

 10 

 0 

 (0) 

– 

 873 

 874 

 0 

 3 

 3 

 7 

 0 

 0 

 6 

 7 

– 

 0 

 286 

35 189 

 416 

3 459 

 21 

1 981 

 3 

 43 

 7 

– 

40 451 

 (122) 

59 937 

59 707 

40 559 

 425 

 (0) 

 886 

 888 

 423 

40 982 

2 817 

 (15) 

1 389 

1 124 

3 068 

 53 

 42 

 250 

 2 

1 603 

 7 

 86 

 (4) 

 (7) 

 (2) 

 (5) 

– 

 (12) 

 30 

 29 

 252 

 200 

2 700 

2 231 

 39 

 296 

 469 

 1 

 6 

– 

 528 

 462 

1 664 

 109 

– 

 47 

 70 

– 

 52 

 75 

 7 

 69 

 85 

– 

 (0) 

 (1) 

– 

– 

 (0) 

 (0) 

 (0) 

 (0) 

 (0) 

 15 

 1 

 11 

 333 

 124 

– 

 0 

 1 

 14 

 0 

 14 

 1 

 7 

 333 

 5 

– 

 0 

 1 

 2 

 0 

 54 

3 122 

 0 

 9 

 0 

 39 

 306 

 469 

 228 

1 891 

 2 

 0 

 1 

 14 

 0 

 10 

 69 

 86 

 386 

 35 

 2 

 0 

 1 

 3 

 0 

  Rights, Equality and Citizenship 

 107 

 (17) 

Union Civil protection 
Mechanism 

  Europe for Citizens 

 65 

 24 

 (4) 

 (1) 

 511 

 200 

 372 

 38 

 25 

 35 

177 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

From budget appropriations 

From assigned revenue appropriations 

Heading 

Commitm. 
carried 
forward 
from 2019 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

Amount 
remaining 
to be 
settled 

Commitm. 
carried 
forward 
from 2019 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

5=1+2+3-4 

6 

7 

8 

9 

Amount 
remaining 
to be 
settled 
10=6+7+8-
9 

  Food and feed 

  Health 

  Decentralised agencies 

Pilot projects and preparatory 
actions 

  Specific Actions 

Total Heading 3: Security and 
citizenship 
Pre-accession assistance (IPA 
II) 

4 

Macro-financial Assistance 
(MFA) 

Guarantee Fund for External 
Actions 

Union Civil Protection 
Mechanism 

EU Aid Volunteers initiative 
(EUAV) 

Fund for Sustainable 
Development (EFSD) 

European Neighbourhood 
Instrument (ENI) 

Development Cooperation 
Instrument (DCI) 

 354 

 136 

 395 

 29 

 86 

 (38) 

 (7) 

 (0) 

 (1) 

 (4) 

 247 

 72 

 231 

 61 

1 139 

1 126 

 23 

 106 

 11 

 92 

 333 

 141 

 407 

 39 

 96 

6 004 

 (118) 

7 152 

5 919 

7 119 

7 698 

 (81) 

1 609 

1 761 

7 465 

 35 

 (20) 

 0 

 15 

– 

– 

 233 

 233 

 16 

 (4) 

 85 

 20 

 28 

 (8) 

 4 

 5 

– 

– 

 25 

 25 

 0 

– 

 76 

 19 

– 

 3 

 2 

 0 

 0 

 179 

 784 

– 

 1 

 0 

 95 

 (0) 

 (0) 

– 

 (0) 

 (2) 

 (2) 

– 

 (0) 

– 

– 

7 905 

 (193) 

2 845 

2 616 

7 941 

 89 

 (3) 

9 054 

 (149) 

3 206 

2 949 

9 162 

 149 

  Partnership Instrument (PI) 

 394 

 (3) 

Democracy and Human Rights 
(EIDHR) 

 365 

 (24) 

 164 

 172 

 133 

 152 

  Stability and Peace (IcSP) 

 657 

 (48) 

 408 

 378 

 422 

 362 

 639 

  Humanitarian aid 

 873 

 (29) 

2 084 

1 627 

1 301 

 6 

 2 

 19 

 332 

Common Foreign and Security 
Policy (CFSP) 

 219 

 (57) 

 336 

 361 

 137 

 19 

 (10) 

178 

 (6) 

 (0) 

– 

 (1) 

 (1) 

 2 

 2 

 47 

 3 

 1 

 46 

 0 

 0 

 550 

 414 

 172 

 169 

 7 

 3 

 1 

 7 

 1 

 0 

 79 

 174 

 16 

 63 

 3 

 4 

 4 

 13 

 43 

 32 

 95 

 1 

 1 

 4 

 291 

 29 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
2020 

11=5+10 

 334 

 144 

 408 

 39 

 96 

7 433 

8 249 

 0 

– 

 78 

 20 

 (0) 

8 011 

 2 

 2 

 0 

 0 

 314 

 785 

– 

 2 

 1 

 (0) 

 70 

 111 

9 273 

 8 

 6 

 19 

 53 

 22 

 430 

 368 

 658 

1 354 

 160 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EUR million 

Total 
commitm. 
outstanding 
at the end of 
2020 

11=5+10 

 117 

 1 

 145 

 5 

Annual accounts of the European Union 2020 

From budget appropriations 

From assigned revenue appropriations 

Heading 

Commitm. 
carried 
forward 
from 2019 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

Amount 
remaining 
to be 
settled 

Commitm. 
carried 
forward 
from 2019 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

5=1+2+3-4 

6 

7 

8 

9 

Amount 
remaining 
to be 
settled 
10=6+7+8-
9 

Nuclear Safety Cooperation 
(INSC) 

 101 

 (3) 

  Decentralised agencies 

– 

– 

  Other actions and programmes 

 144 

 (5) 

Pilot projects and preparatory 
actions 

  Specific Actions 

 7 

 135 

 (1) 

 (2) 

 33 

 21 

 82 

 1 

 88 

 15 

 20 

 87 

 3 

 68 

 116 

 1 

 135 

 5 

 153 

 1 

 0 

 (0) 

 (0) 

– 

– 

– 

– 

 26 

 (23) 

 146 

 139 

 1 

– 

 10 

 0 

– 

 0 

 0 

 0 

 153 

  Total Heading 4: Global Europe 

27 633 

 (627) 

11 395 

10 468 

27 933 

1 521 

 (46) 

 555 

 943 

1 087 

29 020 

5  Pensions 

  European schools 

Pilot projects and preparatory 
actions 

Commission administrative 
expenditure 

Administrative expenditure of 
Other Institutions 
Total Heading 5: 
Administration 
European Globalisation 
Adjustment Fund (EGF) 

9 

European Union Solidarity Fund 
(EUSF) 
Total Heading 9: Special 
Instruments 

O  Innovation Fund (IF) 

Total Heading O: Innovation 
Fund (IF) 

– 

 0 

 6 

 (0) 

2 096 

2 096 

– 

 183 

 183 

 (0) 

– 

 4 

– 

 0 

 2 

 290 

 (19) 

3 705 

3 660 

 317 

 464 

 (22) 

4 024 

3 875 

 761 

 (41) 

10 009 

9 818 

 1 

– 

1 

 (0) 

 2 

 2 

– 

– 

1 106 

1 106 

1108 

1108 

– 

– 

– 

– 

 591 

 910 

 0 

– 

– 

– 

– 

– 

 0 

 0 

 45 

 47 

 93 

– 

 (0) 

– 

– 

 14 

– 

– 

 13 

– 

 (4) 

 231 

 230 

 (47) 

 294 

 258 

 (51) 

 540 

 502 

– 

 1 

 0 

 43 

 36 

 80 

– 

– 

– 

– 

 5 

 5 

 1 

 1 

 4 

 4 

– 

 1 

 2 

 360 

 627 

 990 

 0 

– 

– 

 4 

 4 

  Total 

269 987 

(2 557) 

174 012  168 056 

273 386 

27 708 

 (330) 

7 688 

5 254 

29 811 

303 197 

179 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.  IMPLEMENTATION OF THE BUDGET BY INSTITUTION 

Annual accounts of the European Union 2020 

5.1.  IMPLEMENTATION OF BUDGET REVENUE  

Income appropriations 

Entitlements established 

Institution 

Initial adopted 
budget 

Final adopted 
budget 

Current 
year 

Carried 
over 

Total 

On entitlem. of 
current year 

1 

2 

3 

4 

5=3+4 

6 

EUR million 

Revenue 

On 
entitlem. 
carried over 
7 

Receipts as 
% of budget 

Out- 
standing 

Total 

8=6+7 

9=8/2 

10=5-8 

European Parliament 

European Council and Council 

 171 

 56 

 171 

 56 

 199 

 102 

 21 

 2 

 220 

 103 

 197 

 101 

 7 

 1 

 203 

 102 

 119 % 

 181 % 

 17 

 1 

Commission 

Court of Justice 

Court of Auditors 

Economic and Social Committee 

Committee of the Regions 

Ombudsman 

European Data Protection Supervisor 

European External Action Service 

153 185 

163 727 

173 169 

19 829 

192 998 

171 765 

1 824 

173 589 

 106 % 

19 409 

 58 

 22 

 13 

 10 

 1 

 2 

 49 

 58 

 22 

 13 

 10 

 1 

 2 

 49 

 57 

 23 

 17 

 11 

 1 

 1 

 302 

 0 

 0 

 0 

 0 

 0 

 0 

 2 

 57 

 23 

 17 

 11 

 1 

 1 

 57 

 23 

 17 

 11 

 1 

 1 

 304 

 299 

 0 

 0 

 0 

 0 

 0 

 0 

 2 

 57 

 23 

 17 

 11 

 1 

 1 

 98 % 

 102 % 

 138 % 

 109 % 

 88 % 

 82 % 

 301 

 615 % 

 0 

 0 

 0 

 0 

– 

– 

 3 

Total 

153 566 

164 108 

173 882 

19 853 

193 735 

172 472 

1 834  174 306 

106 % 

19 429 

The  consolidated  reports on  the  implementation  of the  general budget  of  the  EU  include,  as  in  previous  years,  the  budget implementation  of  all  Institutions 
since within the EU budget a separate budget for each Institution is established.  

The budget and implementation of Agencies are not consolidated within the EU budget and are not included in the EU budget reports. The Commission subsidy 
paid to the agencies however is part of the EU budget. In this budgetary part of the annual accounts, only the subsidy paid from the Commission budget to the 
Agencies is taken into consideration. 

Concerning the EEAS, it should be noted that, in addition to its own budget, it also receives contributions from the Commission of EUR 148.1 million (2019: 
EUR 152.7 million) and  the EDF  and the  Trust Funds of  EUR  64.4 million  (2019: EUR 63.1 million). These  contributions cover the costs of the Commission's 
staff in the delegations financed under the EDF and the Trust Funds, including assigned revenue generated during the year from these contributions.   

180 

 
 
 
 
 
 
 
 
 
 
 
 
 
5.2.  IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Union 2020 

EUR million 

Institution 

Total 
appropriat. 
available 

Commitments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over to 
2021 
carry-
overs by 
decision 

from 
assigned 
revenue 

Total 

Appropriations lapsing 

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 

Total 

13=10+ 
11+12 

European Parliament 

2 105 

1 951 

European Council and 
Council 

 649 

 550 

0 

0 

 34 

1 985 

 94 % 

 15 

 566 

 87 % 

 28 

 43 

 75 

 103 

0 

 43 

 13 

 40 

0 

0 

 4 

 1 

 17 

 41 

Commission 

183 075 

168 909 

1 078 

7 393 

177 381 

 97 % 

3 896 

 497 

4 393 

 253 

 4 

1 044 

1 302 

Court of Justice 

Court of Auditors 

Economic and Social 
Committee 

Committee of Regions 

Ombudsman 

European Data-
protection Supervisor 

European External 
Action Service 

 438 

 152 

 147 

 103 

 12 

 19 

 432 

 146 

 131 

 94 

 12 

 14 

1 040 

 695 

0 

0 

0 

0 

0 

0 

0 

 0 

 0 

 4 

 1 

0 

– 

 432 

 99 % 

 146 

 96 % 

 134 

 91 % 

 95 

 12 

 92 % 

 95 % 

 14 

 73 % 

 0 

 0 

 1 

 0 

0 

– 

0 

0 

0 

0 

0 

0 

 0 

 0 

 1 

 0 

0 

– 

 5 

 7 

 12 

 7 

 1 

 5 

 240 

 934 

 90 % 

 69 

 10 

 79 

 27 

0 

0 

0 

0 

0 

0 

0 

 1 

– 

 0 

 0 

 0 

 0 

 0 

 5 

 7 

 12 

 7 

 1 

 5 

 27 

Total 

187 742  172 933 

1 078 

7 688  181 699 

97 % 

4 038 

 582 

4 620 

 369 

 4 

1 050 

1 423 

181 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       
5.3.  IMPLEMENTATION OF PAYMENT APPROPRIATIONS  

Annual accounts of the European Union 2020 

Institution 

Payments made 

Appropriations carried over to 2021 

Appropriations lapsing 

Total 
approp. 
available 

from 
final 
adopted 
budget 

from 
carry- 
overs 

from 
assigned 
revenue 

Total 

% 

automatic 
carry-
overs 

carry- 
overs 
by 
decision 

from 
assigned 
revenue 

1 

2 

3 

4 

5=2+3+
4 

6=5/1 

7 

8 

9 

from 
final 
adopted 
budget 

from 
carry- 
overs 

from 
assigned 
revenue 

Total 

11 

12 

13 

14 

Total 

10=7+8
+9 

European Parliament 

2 379 

1 590 

 247 

 25 

1 862 

 78 % 

 357 

 75 

European Council and 
Council 

 702 

 481 

 45 

 14 

 540 

 77 % 

 70 

0 

 39 

 44 

 471 

 17 

 27 

 113 

 40 

 7 

 1 

 1 

 46 

 48 

Commission 

178 278  158 366 

1 149 

9 661  169 176 

 95 % 

 532 

 885 

7 511 

8 928 

 101 

 56 

 18 

 174 

EUR million 

Court of Justice 

Court of Auditors 

Economic and Social 
Committee 

 463 

 159 

 399 

 137 

 156 

 119 

Committee of Regions 

 115 

 84 

 12 

 13 

 13 

 21 

Ombudsman 

European Data-
protection Supervisor 

European External 
Action Service 

 21 

 6 

 7 

 10 

 0 

 2 

 0 

 0 

 3 

 1 

0 

– 

 420 

 91 % 

 143 

 90 % 

 128 

 82 % 

 94 

 82 % 

 12 

 93 % 

 15 

 69 % 

 33 

 9 

 12 

 11 

 0 

 1 

0 

0 

0 

0 

0 

0 

 1 

 (0) 

 2 

 1 

0 

– 

 34 

 9 

 14 

 12 

 0 

 1 

 5 

 7 

 12 

 7 

 1 

 5 

 4 

 1 

 2 

 2 

 0 

 0 

 1 

 0 

 0 

 0 

 0 

 0 

 0 

 9 

 7 

 14 

 9 

 1 

 5 

 43 

1 161 

 602 

 102 

 215 

 919 

 79 % 

 93 

 10 

 96 

 198 

 27 

 16 

Total 

183 446  161 801 

1 589 

9 920  173 310 

94 % 

1 116 

 969 

7 694 

9 779 

 221 

 115 

 20 

 357 

182 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

6.  IMPLEMENTATION OF THE AGENCIES' BUDGET 

The agencies’ revenue and expenditure, as shown in the reports 6.1 and 6.2 below, are not consolidated 
as such within the EU budget. In this budgetary part of the annual accounts, only the subsidy paid from 
the Commission budget to the Agencies is taken into consideration. 

The EU budget implementation reports include  the  subsidy paid from  the EU  budget  to the agencies as 
commitment and payment appropriations, when applicable. 

The  agencies’  reports  below  show  an  overview  of  the  Agencies,  both  decentralised  (also  known  as 
traditional agencies) and executive agencies, and of their revenue (6.1) and expenditure (6.2). 

Other sources of revenue and their related expenditure are not added into the EU budget accounts. Each 
agency presents its own set of annual accounts. 

6.1.  BUDGET REVENUE 

Agency 

Agency for Operational Management of Large-Scale IT Systems 
Agency for the Cooperation of Energy Regulators 
Body of European Regulators for Electronic Communications 
Community Plant Variety Office  
Consumers, Health, Agriculture and Food Executive Agency 
Education, Audiovisual and Culture Executive Agency 
European Agency for Safety and Health at Work 
European Asylum Support Office 
European Banking Authority 
European Border and Coast Guard Agency 
European Centre for Disease Prevention and Control 
European Centre for the Development of Vocational Training  
European Chemicals Agency 
European Environment Agency 
European Fisheries Control Agency 
European Food Safety Authority 
European Global Navigation Satellite Systems (GNSS) Agency 
European Institute for Gender Equality 
European Institute of Innovation and Technology 
European Insurance and Occupational Pensions Authority 
European Maritime Safety Agency 
European Medicines Agency 
European Monitoring Centre for Drugs and Drug Addiction 
European Research Council 
European Securities and Markets Authority 
European Training Foundation 
European Union Agency for Criminal Justice Cooperation 
European Union Agency for Cybersecurity 
European Union Agency for Law Enforcement Cooperation 
European Union Agency for Law Enforcement Training 
European Union Agency for Railways 
European Union Aviation Safety Agency 
European Union Fundamental Rights Agency 
European Union Intellectual Property Office 
Executive Agency for Small and Medium-sized Enterprises 
Foundation for Improvement of Living and Working Conditions 
Fusion for Energy Joint Undertaking 
Innovation and Networks Executive Agency 
Research Executive Agency 
Translation Centre for the Bodies of the European Union 
Total 

183 

Funding 
MFF 
heading 

Final 
adopted 
budget 

EUR million 

Revenue 
received 

3 
1a 
1a 
N/A 
3 
1a, 3, 4 
1a 
3 
1a 
3 
3 
1a 
1a, 2 
2 
2 
3 
1a 
3 
1a 
1a 
1a 
3 
3 
1a 
1a 
4 
3 
1a 
3 
3 
1a 
1a 
3 
N/A 
1a 
1a 
1a 
1a 
5 
5 

 233 
 17 
 7 
 20 
 11 
 51 
 16 
 130 
 101 
 364 
 62 
 18 
 114 
 61 
 17 
 99 
 35 
 8 
 547 
 28 
 81 
 370 
 18 
 52 
 55 
 20 
 42 
 22 
 154 
 8 
 31 
 183 
 24 
 465 
 52 
 22 
 640 
 32 
 80 
 47 
4 338 

 237 
 17 
 7 
 18 
 11 
 50 
 16 
 131 
 48 
 373 
 72 
 17 
 110 
 61 
 18 
 99 
 933 
 8 
 550 
 29 
 98 
 404 
 18 
 52 
 54 
 20 
 48 
 22 
 161 
 25 
 31 
 173 
 24 
 284 
 49 
 22 
 795 
 31 
 80 
 44 
5 240 

 
 
 
 
 
 
Annual accounts of the European Union 2020 

Type of revenue 

Final adopted 
budget 

2 543 
 751 
1 045 
4 338 

EUR million 
Amounts 
received 

3 423 
 774 
1 044 
5 240 

Commission subsidy 
Fee income 
Other income 
Total 

6.2.  COMMITMENT AND PAYMENT APPROPRIATIONS BY 

  AGENCY 

Commitment 
appropriations 

Total 
appropr. 
available 

Commit. 
made 

EUR million 

Payment 
appropriations 
Total 
appropr. 
available 

Payments 
made 

 412 
 17 
 7 
 21 
 11 
 50 
 17 
 141 
 49 
 384 
 72 
 18 
 112 
 77 
 18 
 104 
 915 
 8 
 625 
 29 
 105 
 405 
 19 
 52 
 54 
 21 
 48 
 22 
 165 
 30 
 33 
 262 
 25 
 483 
 49 
 22 
 886 
 31 
 80 
 47 
5 928 

 341 
 17 
 7 
 18 
 11 
 50 
 16 
 120 
 49 
 372 
 61 
 18 
 108 
 75 
 17 
 104 
 438 
 8 
 612 
 29 
 98 
 398 
 18 
 52 
 53 
 21 
 44 
 21 
 156 
 13 
 33 
 171 
 24 
 256 
 48 
 22 
 885 
 31 
 79 
 42 
4 934 

 256 
 20 
 8 
 20 
 13 
 56 
 20 
 149 
 54 
 495 
 82 
 18 
 128 
 97 
 20 
 107 
1 584 
 10 
 560 
 33 
 119 
 456 
 20 
 55 
 60 
 22 
 51 
 26 
 183 
 32 
 34 
 273 
 30 
 21 
 54 
 27 
 816 
 32 
 86 
 50 
6 179 

 229 
 17 
 5 
 18 
 11 
 52 
 13 
 107 
 49 
 305 
 57 
 17 
 110 
 69 
 16 
 95 
 788 
 7 
 551 
 27 
 99 
 374 
 17 
 53 
 51 
 20 
 40 
 19 
 148 
 10 
 29 
 156 
 22 
 253 
 48 
 21 
 800 
 30 
 78 
 42 
4 855 

Agency 

Agency for Operational Management of Large-Scale IT Systems 
Agency for the Cooperation of Energy Regulators 
Body of European Regulators for Electronic Communications 
Community Plant Variety Office  
Consumers, Health, Agriculture and Food Executive Agency 
Education, Audiovisual and Culture Executive Agency 
European Agency for Safety and Health at Work 
European Asylum Support Office 
European Banking Authority 
European Border and Coast Guard Agency 
European Centre for Disease Prevention and Control 
European Centre for the Development of Vocational Training 
European Chemicals Agency 
European Environment Agency 
European Fisheries Control Agency 
European Food Safety Authority 
European Global Navigation Satellite Systems (GNSS) Agency 
European Institute for Gender Equality 
European Institute of Innovation and Technology 
European Insurance and Occupational Pensions Authority 
European Maritime Safety Agency 
European Medicines Agency 
European Monitoring Centre for Drugs and Drug Addiction 
European Research Council 
European Securities and Markets Authority 
European Training Foundation 
European Union Agency for Criminal Justice Cooperation 
European Union Agency for Cybersecurity 
European Union Agency for Law Enforcement Cooperation 
European Union Agency for Law Enforcement Training 
European Union Agency for Railways 
European Union Aviation Safety Agency 
European Union Fundamental Rights Agency 
European Union Intellectual Property Office 
Executive Agency for Small and Medium-sized Enterprises 
Foundation for Improvement of Living and Working Conditions 
Fusion for Energy Joint Undertaking 
Innovation and Networks Executive Agency 
Research Executive Agency 
Translation Centre for the Bodies of the European Union 
Total 

184 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2020 

Type of expenditure 

Staff 

Administrative 

Operational 

Total 

  EUR million 

Commitment 
appropriations 

Payment appropriations 

Total appropr. 
available 

Commit. 
made 

Total appropr. 
available 

Payments 
made 

1 349 

 454 

4 126 

5 928 

1 325 

 439 

3 169 

4 934 

1 240 

 487 

4 452 

6 179 

1 313 

 423 

3 119 

4 855 

185 

 
 
 
 
 
 
Annual accounts of the European Union 2020 

GLOSSARY 

Actuarial assumptions 

Assumptions used to calculate the costs of future events that affect the pension liability. 

Actuarial gains and losses 

For  a  defined  benefit  scheme,  the  changes  in  actuarial  deficits  or  surpluses.  They  arise  as  a  result  of 
differences between the previous actuarial assumptions and what has actually occurred and due to effects 
of changes in actuarial assumptions. 

Administrative appropriations 

Administrative  appropriations  cover  the  running  costs  of  the  Institutions  and  entities  (staff,  buildings, 
office equipment). 

Adopted budget 

Draft  budget  becomes  the  adopted  budget  as  soon  as  it  is  approved  by  the  Budgetary  Authority  and 
declared definitely adopted by the President of the European Parliament. 

Amending budget 

Decision adopted during the budget year to amend (increase, decrease, transfer) aspects of the adopted 
budget of that year. 

Amounts to be called from Member States 

These  represent  expenses  incurred  during  the  reporting  period  that  will  need  to  be  funded  by  future 
budgets,  i.e.  by  the  EU  Member  States.  This  is  a  consequence  of  the  co-existence  of  accruals  based 
financial statements and a cash based budget. 

Annual Activity Report (AAR) 

Annual Activity Reports indicate the results of operations by reference to objectives set, associated risks 
and  the  internal  control  structure,  inter  alia.  Since  the  2001  budget  exercise  for  the  Commission  and 
since 2003 for all European Union institutions, the ‘authorising officer by delegation’ must submit an AAR 
to  his/her  institution  on  the  performance  of  his/her  duties,  together  with  financial  and  management 
information. 

Appropriations 

Budget  funding.  The  budget  forecasts  both  commitments  and  payments  (cash  or  bank  transfers  to  the 
beneficiaries). Appropriations for commitments and payments often differ (differentiated appropriations) 
because multi annual programmes and projects are usually fully committed in the year they are decided 
and  are  paid  over  the  years  as  the  implementation  of  the  programme  and  project  progresses.  Non-
differentiated  appropriations  apply  to  administrative  expenditure,  for  agricultural  market  support  and 
direct payments and commitment appropriations equal payment appropriations. 

Assigned revenue 

Dedicated  revenue  received  to  finance  specific  items  of  expenditure.  The  main  source  of  external 
assigned  revenue  is  financial  contributions  from  third  countries  to  programmes  financed  by  the  Union. 
The main source of internal assigned revenue is revenue from third parties in respect of goods, services 
or  work  supplied  at  their  request;  revenue  arising  from  the  repayment  of  amounts  wrongly  paid  and 
revenue from the sale of publications and films. 

186 

 
 
 
Available for sale financial assets 

Annual accounts of the European Union 2020 

All  financial  assets  (except  derivatives)  that  are  according  to  International  Public  Sector  Accounting 
Standards  measured  at  fair  value  and  for  which  the  changes  in  fair  value  are  to  be  recognised  in  a 
reserve in net assets until derecognition (or impairment). 

Budget line 

As  far  as  the  budget  structure  is  concerned,  revenue  and  expenditure  are  shown  in  the  budget  in 
accordance with a binding nomenclature which reflects the nature and purpose of each item, as imposed 
by  the  budgetary  authority.  The  individual  headings  (title,  chapter,  article  or  line)  provide  a  formal 
description of the nomenclature. 

Cancellation of appropriations 

Unused appropriations that may no longer be used. 

Carryover of appropriations 

Exception to the principle of annuality in so far as appropriations that could not be used in a given budget 
year may, under strict conditions, be exceptionally carried over for use during the following year. 

Commitment 

Legal  pledge  to  provide  finance  subject  to  certain  conditions.  The  EU  commits  itself  to  reimbursing  its 
share  of  the  costs  of  an  EU  funded  project.  Today’s  commitments  are  tomorrow’s  payments.  Today’s 
payments are yesterday’s commitments. 

Commitment appropriation 

Commitment  appropriations 
cover 
agreements/decisions) that could be signed in the current financial year. 

cost  of 

total 

the 

legal  obligations 

(contracts,  grant 

Current service cost 

The increase in scheme liabilities arising from service in the current financial year. 

Decommitment 

An act whereby a previous commitment (or part of it) is cancelled. 

Defined benefit scheme 

A pension or other retirement benefit scheme where the scheme rules define the benefits independently 
of the contributions payable, and the benefits are not directly related to the investments of the scheme. 
The scheme may be funded or unfunded. 

Derivatives 

Financial  instruments  whose  value  is  linked  to  changes  in  the  value  of  another  financial  instrument,  an 
indicator or a commodity. In contrast to the holder of a primary financial instrument (e.g. a government 
bond), who has an unqualified right to receive cash (or some other economic benefit) in the future, the 
holder of a derivative has only a qualified  right to  receive such  a benefit. An example of a derivative is 
currency forward contract. 

Direct management 

Mode  of  budget  implementation.  Under  direct  management  the  budget  is  implemented  directly  by 
Commission services, Executive Agencies or Trust Funds. 

Discount rate 

The rate used to  adjust for the time  value of money. Discounting is a technique used to compare  costs 
and benefits that occur in different time periods. 

187 

 
Effective interest rate 

Annual accounts of the European Union 2020 

The rate that discounts estimated future cash receipts or payments over the expected life of the financial 
asset or financial liability to the net carrying amount of the asset or liability.  

Financial assets or liabilities at fair value through surplus or deficit 

All  financial  assets  or  liabilities  that  are  according  to  International  Public  Sector  Accounting  Standards 
measured at fair value and for which the changes in fair value are to be recognised in surplus or deficit of 
the period (i.e. derivatives). 

Financial correction 

The purpose of financial corrections is to protect the EU budget from the burden of irregular expenditure. 
For  expenditure  under  shared  management,  the  task  of  recovering  irregular  payments  is  primarily  the 
responsibility of the Member State. 

A 'confirmed' financial correction has been accepted by the Member State concerned. A 'decided' financial 
correction has been adopted by a Commission decision and is always a net correction, where the Member 
State is required to reimburse irregular funds to the EU budget, thus leading to a definitive reduction of 
the allocated envelope  to the Member State  concerned. Confirmed and decided financial corrections are 
reported in this publication as one category. 

An 'implemented' financial correction has corrected the observed irregularity. 

Indirect management 

Mode  of  budget  implementation.  Under  indirect  management  the  Commission  confers  tasks  of  budget 
implementation to bodies of EU law or national law. 

Interruptions and suspensions 

If the Commission finds, based on  its own work or the information reported by audit authorities, that a 
Member State has failed to remedy serious shortcomings in the management and control systems and/or 
to  correct  irregular  expenditure  which  had  been  declared  and  certified,  it  may  interrupt  or  suspend 
payments. 

Irregularity 

An irregularity is an act which does not comply with the applicable EU or national rules and which has a 
potentially  negative  impact  on  the  EU  financial  interests.  Irregularities,  which  may  be  the  result  of  the 
conduct of beneficiaries claiming funds or of the authorities responsible for making payments. The notion 
of irregularity is wider than that of fraud, which refers to conduct that may qualify as a criminal offence. 

Lapsing appropriations 

Unused appropriations to be cancelled at the end of the financial year. Lapsing means the cancellation of 
all  or  part  of  the  authorisation  to  make  expenditures  and/or  incur  liabilities which  is  represented  by  an 
appropriation.  Only  for  Joint  Undertakings,  as  specified  in  their  Financial  Rules,  any  unused 
appropriations  may  be  entered in  the  estimate  of  revenue  and  expenditure of  up  to the  following  three 
financial years (the so-called "N+3" rule). Hence, lapsing appropriations for JUs could be reactivated until 
financial year "N+3" 

Outstanding commitments 

As  the  Reste  à  Liquider  (RAL),  they  represent  the  amount  where  a  budgetary  commitment  has  been 
made  but  the  subsequent  payment  is  not  yet  done.  They  represent  payment  obligations  for  the  EU  for 
future  years  and  stem  directly  from  the  existence  of  multi  annual  programmes  and  the  dissociation 
between commitment and payment appropriations. 

188 

 
 
 
Own resources 

Annual accounts of the European Union 2020 

The main source of revenues for the EU budget. The different own resources are listed in the applicable 
Own  Resource  Decision  (in  2020:  Council  Decision  2014/335)  and  are  traditional  own  resources,  VAT-
based resources and GNI-based resources. 

Payment appropriations 

Payment  appropriations  cover  expenditure  due  in  the  current  year,  arising  from  legal  commitments 
entered in the current year and/or earlier years. 

Pre-financing 

A payment intended to provide the beneficiary with a float. It may be split into a number of instalments 
in accordance with the provisions of the underlying contract, decision, agreement or the 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. 

Preventive measure 

Preventive measures, which are at the Commission’s disposal to protect the EU budget when it is aware 
of  potential  deficiencies,  include  suspensions  and  interruptions  of  payments  from  the  EU  budget  to  the 
operational programme. 

Reste à Liquider (RAL) 

As  the  Outstanding  commitments,  it  represents  the  amount  where  a  budgetary  commitment  has  been 
made  but  the  subsequent  payment  is  not  yet  done.  They  represent  payment  obligations  for  the  EU  for 
future  years  and  stem  directly  from  the  existence  of  multi  annual  programmes  and  the  dissociation 
between commitment and payment appropriations. 

Shared management 

Mode of budget implementation. Under shared management budget implementation tasks are delegated 
to Member States. About three quarters of the EU expenditure falls under this implementation mode. 

Traditional own resources 

Traditional  own  resources  are  defined  in  the  applicable  Own  Resources  Decision  (in  2020:  Council 
Decision 2014/335) and comprise namely customs duties and sugar levies. 

Transfers (between budget lines) 

Transfers between budget lines imply the relocation of appropriations from one budget line to another, in 
the  course  of  the  financial  year,  and  thereby they  constitute  an  exception  to the  budgetary  principle  of 
specification. They are, however, expressly authorised by the Treaty on the Functioning of the European 
Union under the conditions laid down in the Financial Regulation (FR). The FR identifies different types of 
transfers depending on whether they are between or within budget titles, chapters, articles or headings 
and require different levels of authorisation. 

189 

 
 
Annual accounts of the European Union 2020 

LIST OF ABBREVIATIONS  

AAR 

Annual Activity Report 

AMIF  

Asylum, Migration and Integration Fund 

AOD  

Authorising Officers by Delegation 

ATM 

BOP 

Air Traffic Management 

Balance of Payments 

BUFI Fund 

Budget Fines Fund 

CAP 

Common Agricultural Policy 

CCS LGF 

Cultural and Creative Sector Guarantee Facility 

CEF 

Connecting Europe Facility 

CEF DI 

Connecting Europe Facility Debt Instrument 

CF 

CIP 

Cohesion Fund 

Competitiveness and Innovation Framework Programme 

COM 

European Commission 

COSME 

Competitiveness of Enterprises and Small and Medium-sized Enterprises 

COSO 

Committee of Sponsoring Organizations of the Treadway Commission 

CPR 

Common Provisions Regulation 

D&WM 

Decommissioning and Waste Management 

EAFRD 

European Agricultural Fund for Rural Development 

EAGF  

European Agricultural Guarantee Fund 

EAR 

EaSI 

European Union Accounting Rule 

Employment and Social Innovation 

EBRD 

European Bank for Reconstruction and Development 

ECA 

ECB  

European Court of Auditors 

European Central Bank 

ECOFIN 

Economic and Financial Affairs Council 

ECSC i.L.  

European Coal and Steel Community in Liquidation 

EDF 

EDIF 

European Development Fund 

Guarantee Facility under the Western Balkan 

190 

 
 
 
Annual accounts of the European Union 2020 

EEA 

EEAS 

EFSD 

European Economic Area 

European External Action Service 

European Fund for Sustainable Development 

EFSE  

European Fund for Southeast Europe 

EFSF  

European Financial Stability Facility 

EFSI 

EFSM 

European Fund for Strategic Investments 

European Financial Stabilisation Mechanism 

EFTA  

European Free Trade Association 

EGNOS  

European Geostationary Navigation Overlay System 

EIB  

EIF  

European Investment Bank 

European Investment Fund 

ElectriFI 

Electrification Financing Initiative  

ELM 

External Lending Mandate 

EMFF  

European Maritime and Fisheries Fund 

EMU  

Economic and Monetary Union 

ENEF  

Enterprise Expansion Fund 

ENIF  

ENPI  

EP  

Enterprise Innovation Fund 

European Neighbourhood and Partnership Instrument 

European Parliament 

ERDF  

European Regional Development Fund 

ERI 

ESA  

ESF  

ESIF  

ESM  

ETF  

EU  

EIB Resilience Initiative 

European Space Agency 

European Social Fund 

European Structural and Investment Funds 

European Stability Mechanism 

European Technology Start up Facility 1998 

European Union 

EUMETSAT  

European Organisation for the Exploitation of Meteorological Satellites 

Euratom 

European Atomic Energy Community 

FIFO 

FP7  

First-in, First-out 

7th Research Framework Programme for Research and Technological Development 

191 

 
Annual accounts of the European Union 2020 

FR  

EU Financial Regulation 

FSDA  

Financial Statement Discussion and Analysis 

GDP 

GNI  

Gross Domestic Product 

Gross National Income 

GNSS  

Global Navigation Satellite Systems 

H2020  

Horizon 2020 

IIW  

IMF  

Infrastructure and Innovation Window 

International Monetary Fund 

IPSAS 

International Public Sector Accounting Standards 

IT  

Information Technology 

ITER  

International Thermonuclear Experimental Reactor 

JRC  

JU  

Joint Research Centre 

Joint Undertaking 

LGTT  

Loan Guarantee Instrument for TEN-T projects 

MAP  

MEP  

MFA  

MFF  

Multi Annual Program - Medium Enterprise Financial Inclusion Programme 

Member of the European Parliament 

Macro Financial Assistance 

Multiannual Financial Framework 

MSME 

Micro, Small and Medium Enterprise 

ORD  

PBI  

Own Resources Decision 

Project Bond Initiative 

PF4EE  

Private Finance for Energy Efficiency Instrument 

PGF  

PPP  

Participants Guarantee Fund 

Public-Private Partnership 

PSEO  

Pension Scheme of European Officials  

RAL 

"Reste à Liquider" (Outstanding Commitments) 

RSFF  

Risk Sharing Finance Facility 

RTD  

S&P  

Research, Technological Development and Demonstration 

Standard & Poor's Financial Services LLC 

SANAD  

MENA Fund for Micro-, Small and Medium Enterprises 

SAPARD  

Special Accession Programme for Agriculture and Rural Development  

192 

 
 
Annual accounts of the European Union 2020 

SEMED  

Southern and Eastern Mediterranean Micro, Small and Middle sized Entreprises Financial 
Inclusion Programme 

SIUGI  

SME Initiative Uncapped Guarantee Instrument 

SME 

Small and Medium-sized Enterprise(s) 

SMEW  

SME Window (Small and Medium-sized Enterprises Window) 

SURE 

Support to mitigate Unemployment Risks in an Emergency 

TFEU  

Treaty on the Functioning of the European Union 

TOR  

Traditional Own Resources 

TRDI  

Temporary Rural Development Instrument 

VAT  

Value Added Tax 

193