COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS CONSOLIDATED ANNUAL ACCOUNTS OF THE EUROPEAN UNION FOR THE FINANCIAL YEAR 2021
Date: 2022-06-23
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, 23.6.2022  COM(2022) 323 final    COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS    CONSOLIDATED ANNUAL ACCOUNTS OF THE EUROPEAN UNION FOR THE FINANCIAL YEAR 2021  
 
 
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 ........... 141 

GLOSSARY ............................................................................................ 204 

LIST OF ABBREVIATIONS ........................................................................ 208 

 
 
 
 
 
Annual accounts of the European Union 2021 

FOREWORD 

In 2021, Europe defied 
the ongoing pandemic. 
Solidarity  was  key  to 
contain  the  Covid-19 
challenge 
to 
mitigate  its  economic 
and  social  impact.  The 
European 
budget 
mobilised  all  available 
support 
means 
to 
businesses 
citizens, 
and  Member  States  whilst  making  Europe  fit  for 
the  future:  greener,  more  digital  and  more 
resilient.  

and 

The  European  Union  launched  the  dedicated 
recovery  instrument  NextGenerationEU  to 
support  Europe's  recovery  and  to  tackle  current 
and 
future  challenges.  With  extraordinary 
amounts  of  funding  raised  on  the  financial 
markets  as  from  June  2021  the  EU  budget 
proved  one  more  time  to  be  an  important  tool 
the  Union  has  at  its  disposal  to  tackle  crisis 
situations  and  provide  clear  added  value  to 
people's lives.  

In  addition  the  SURE  programme  (Support  to 
mitigate  Unemployment  Risks 
in  an 
Emergency),  continued  to  support  Member 
States both to maintain people in work and help 
jobs affected by the pandemic.  

On top of tackling the crisis with rapid responses 
and  ongoing  adjustments  to  the  political  and 
financial  situation,  the  European  Union  kept  its 
its  policy 
promise  and  delivered  on 
objectives.  Therefore,  it  has  made  best  use  of 
the  2021  budget  –  the  first  of  the  current 
multiannual  financial  framework,  with  budget 
implementation  amounting  to  EUR  268.3  billion 
in commitments made. 

including 

It  is  my  pleasure  to  present  the  2021  annual 
accounts of the European Union. They provide a 
complete  overview  of  EU  finances  and  the 
implementation  of  the  EU  budget  for  the  past 
year, 
information  on  contingent 
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 fiscal transparency and accountability. 

Johannes Hahn 

Commissioner for Budget and Human 
Resources 

2 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

FINANCIAL HIGHLIGHTS OF THE YEAR 

The objective of this Financial Highlights section, 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 2021 

CONTENTS 

1. 

2. 

KEY FIGURES AND HIGHLIGHTS OF THE YEAR .............................................. 5 

THE 2021-2027 MULTIANNUAL FINANCIAL FRAMEWORK AND 
NextGenerationEU ..................................................................................... 7 

2.1.  MFF 2021-27 & NextGenerationEU – Key Figures ..................................... 7 

2.2. 

2.3. 

NextGenerationEU – overview ............................................................... 8 

Financial situation of NGEU at 31 December 2021 .................................... 9 

3. 

SUMMARY OF BUDGET IMPLEMENTATION ................................................... 15 

3.1. 

3.2. 

Revenue ........................................................................................... 15 

Expenditure ....................................................................................... 16 

4. 

FINANCIAL INSTRUMENTS AND BUDGETARY GUARANTEES........................... 19 

4.1. 

4.2. 

4.3. 

4.4. 

Financial instruments financed by the EU budget.................................... 19 

Budgetary guarantees: Financial assets held in guarantee funds .............. 19 

Loans and related borrowings for financial assistance programmes ........... 20 

Budgetary contingent liabilities for financial assistance programmes ......... 23 

5. 

FINANCIAL STATEMENTS ANALYSIS ........................................................... 24 

5.1. 

5.2. 

5.3. 

5.4. 

REVENUE .......................................................................................... 24 

EXPENSES ......................................................................................... 25 

ASSETS ............................................................................................ 26 

LIABILITIES ...................................................................................... 28 

6. 

EU POLITICAL AND FINANCIAL FRAMEWORK, GOVERNANCE AND 
ACCOUNTABILITY .................................................................................... 31 

6.1. 

6.2. 

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

GOVERNANCE AND ACCOUNTABILITY ................................................... 32 

4 

 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

1.  KEY FIGURES AND HIGHLIGHTS OF THE YEAR 

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)  and  are  prepared  according  to  the  highest 
available standards, the International Public Sector Accounting Standards (IPSAS).  

The year 2021, which was the first year of the EU’s 2021-2027 MFF, was exceptional in many aspects. 
As  can  be  seen  on  the  balance  sheet  below  and  further  detailed  in  the  Financial  Statements  Analysis 
(section 5), the 2021 EU consolidated financial statements were particularly impacted by the successful 
launch of NextGenerationEU in 2021 (EUR 71.6 billion disbursed to Member States) and the additional 
borrowing and lending activities under the SURE instrument (EUR 50 billion): 

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 

2021 

188.6 

93.4 

72.4 

44.9 

14.7 

414.1 

122.5 

246.1 

46.4 

78.1 

3.3 

496.4 

1.3 

(83.6) 

(82.3) 

EUR billion 

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) 

 see Financial Statement Analysis, section 5 

5 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Successful Launch of NextGenerationEU 

 Disbursements under NextGenerationEU – EUR 71.6 billion split between: 

 see Financial situation of NGEU at 31 December 2021, section 2.3  

6 

 
 
 
 
 
Annual accounts of the European Union 2021 

2. 

THE 2021-2027 MULTIANNUAL FINANCIAL 
FRAMEWORK AND NextGenerationEU 

2.1.  MFF 2021-27 & NextGenerationEU – Key Figures 

The  EU’s  2021-2027  long-term  budget,  together  with  the  NextGenerationEU  (‘NGEU’)  recovery 
instrument,  amounts  to  EUR 2 018  trillion  in  current  prices  (EUR 1.8  trillion  in  2018  prices).  This 
unprecedented financial response to the crisis will help repair the economic and social damage caused by 
the  coronavirus  pandemic  and  support  the  transition  towards  a  greener,  more  digital  and  more 
sustainable Europe.  

The  package  consists  of  the  long-term  budget,  the  2021-2027  multiannual  financial  framework  (‘MFF’), 
made  up  of  EUR 1 211  trillion  in  current  prices  (EUR 1 074  trillion  in  2018  prices),  combined  with  the 
temporary  recovery  instrument,  NGEU  of  up  to  EUR 806.9  billion  in  current  prices  (EUR 750  billion  in 
2018 prices). 

This is a truly modernised budget: 

  More  than  50%  of  the  total  amount  of  the  next  long-term  budget  and  NGEU  will  support  the 
modernisation  of  the  European  Union  through  research  and  innovation,  fair  climate  and  digital 
transitions, preparedness, and recovery and resilience actions; 

  30% of the EU budget will be spent to fight climate change – the highest share of the largest EU 

budget ever; 

  20%  of  the  Recovery  and  Resilience  Facility  (RRF)  –  which  accounts  for  90%  of  NGEU  –  will  be 

invested in digital transformation; 

 

 

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

For the first time ever, new and reinforced priorities have the highest share within the long-term 
budget, 32%. 

7 

 
 
 
 
 
 
Political priorities underlying the 2021-27 MFF 

Annual accounts of the European Union 2021 

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 
focuses 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 

2.2.  NextGenerationEU – overview  

With a budget of EUR 806.9 billion, NGEU is designed to help repair the immediate economic and social 
damage  brought  about  by  the  coronavirus  pandemic,  thus  building  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, up to EUR 338.0 billion, are provided in the form of non-repayable support, or grants. 
The  other  part,  up  to  EUR  385.8  billion,  is  used  to  provide  loans  from  the  Union  to  individual  Member 
States. These loans will be repaid by those Member States starting only after the current MFF period and 
extending  over  a  long  time  period,  with  current  loans  for  example  maturing  only  in  2051  (see  section 
2.3.3). 

In addition, NGEU reinforces several existing EU programmes and policies, as follows: 

 

 

 

 

The  Cohesion  policy  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; 

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

The European Agricultural Fund for Rural Development, to further support farmers; 

InvestEU, to support the investment efforts of our businesses; 

  Horizon Europe, to make sure the EU has the capacity to fund more excellence in research; and 

  RescEU,  safeguards  that  the  EU  Civil  Protection  Mechanism  has  the  capacity  to  respond  to 

largescale emergencies. 

8 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

2.3.  Financial situation of NGEU at 31 December 2021 

2.3.1.  Overview 

From the launch of the NGEU  funding operations on 15  June 2021 to the end of 2021, the Commission 
has raised EUR 71.0 billion of long-term funding, mainly by issuing bonds in syndicated transactions. In 
addition, as of December 2021, the Commission has EUR 20 billion of short-term EU-Bills outstanding. Up 
to  year-end  2021,  the  Commission  had  disbursed  a  total  of  EUR  71.6  billion  of  financial  support.  The 
majority  of  this  amount,  EUR  64.3  billion,  was  disbursed  to  20  Member  States  under  the  RRF  (thereof 
EUR 46.4 billion as non-repayable support and EUR  18.0 billion as loans). A  further EUR 7.2 billion was 
disbursed  as  MFF  payments  under  existing  programmes.  The  remaining  liquidity  of  EUR  19.4  billion  is 
held in the NGEU bank account with the ECB and in the Commission’s central treasury account, pending 
disbursement to the budget for MFF programmes. 

9 

 
 
 
 
NGEU – Outstanding Borrowings and Disbursements at 31 December 2021 

Annual accounts of the European Union 2021 

* A further EUR 1.4 billion of funds were held in the Commission’s central treasury account pending disbursement to 
the budget for MFF programmes. 

2.3.2.  Borrowings 

To meet the NGEU funding needs, the Commission issues securities on the international capital markets. 
Based  on  a  diversified  funding  strategy,  the  Commission  combines  the  use  of  different  funding 
instruments and funding techniques with an open and transparent communication to market participants. 

In  2021,  the  annual  Borrowing  Decision1  allowed  the  Commission to issue  up to a maximum amount of 
EUR 125 billion in long-term funding and to have up to a maximum outstanding amount of EUR 60 billion 
in short-term funding.  

Long-term funding – Syndicated transactions and auctioning of EU bonds 

As  of  31  December  2021,  the  Commission  borrowed  EUR  66.0  billion  through  five  bond  issuances  via 
syndicated  transactions  (including  one  dual-tranche  transaction)  as  well  as  EUR  5.0  billion  through  the 
auctioning of EU bonds: 

Long-term funding 
transactions (including taps) 
NGEU#1 

NGEU#2a (including taps) 

NGEU#2b 

NGEU#3 

NGEU#4 (including taps) 

NGEU Green bond #1 

Total 

Maturity 

Issued/Raised 

04.07.2031 

06.07.2026 

06.07.2051 

04.07.2041 

04.10.2028 

04.02.2037 

20.0 

11.5 

6.0 

10.0 

11.5 

12.0 

71.0 

Total repaid at 
year-end 
0.0 

EUR billion 
Outstanding at 
year-end 
20.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

11.5 

6.0 

10.0 

11.5 

12.0 

71.0 

1  Commission Implementing Decision C(2021) 3991 final. 

10 

 
 
 
 
 
 
 
 
                                                 
 
Annual accounts of the European Union 2021 

The first syndicated transaction in June 2021 raised EUR 20.0 billion. It was the largest-ever institutional 
bond issuance in Europe, the largest-ever institutional single tranche transaction and the largest amount 
the EU has ever raised in a single transaction. 

In  October  2021  the  Commission  issued  the  first  NGEU  green  bond,  raising  EUR 12.0 billion  to  be  used 
exclusively  for  green  and  sustainable  investments  across  the  EU.  This  issuance,  which  represented  the 
world's largest green bond issuance ever, created visibility for the green policies financed by green bonds 
and supported the European Green Deal and the green transition. The issuance of green bonds requires 
the  implementation  of  reporting  on  the  precise  use  of  green  bond  proceeds  and  on  the  impact  of 
investments that are financed through green bonds. 

Short-term funding – Auctioning of EU-Bills 

As  of  31  December  2021,  the  outstanding  amount  of  short-term  funding,  raised  via  the  auctioning  of 
EU-bills with a maturity of three or six months, amounted to EUR 20.0 billion: 

Auctioning of EU- bills 

Maturity of 3 months 

Maturity of 6 months 

Total 

EUR billion 
Outstanding at 
year-end 
8.5 

11.5 

20.0 

While syndicated transactions will remain the mainstay of the NGEU issuance programme, at least in the 
initial phases, the capacity to raise money quickly  and cheaply via auctioning significantly enhances the 
Commission’s ability to service its NGEU payment needs on the most advantageous terms for the Union 
budget and/or beneficiary Member States. 

Furthermore,  short-term  financing  of  EUR  16  billion  was  raised  via  money-market  transactions,  all  of 
which was repaid at year-end. 

2.3.3.  Disbursements 

By  year-end  2021,  the  Commission  had  received  26  Member  States’  recovery  and  resilience  plans,  of 
which 22 were positively assessed and subsequently approved by the Council (Belgium, Croatia, Cyprus, 
Czechia,  Denmark,  Germany,  Greece,  Spain,  Portugal,  France,  Ireland,  Italy,  Latvia,  Luxembourg, 
Austria, Slovakia, Lithuania, Malta, Slovenia, Romania, Estonia and Finland). Four further Member States 
(Bulgaria, Hungary, Poland and Sweden) submitted plans for which the assessments were still ongoing at 
year-end. The submission of one further plan (the Netherlands) was pending. The total financial support 
approved under the 22 endorsed plans amounted to EUR 291.2 billion of non-repayable support (of which 
the  financing  agreements  signed  by  year-end  covered  EUR  195.4  billion)  and  EUR  153.9  billion  of 
financial loan support (of which the loan agreements signed by year-end covered EUR 153.2 billion). 

Non-repayable support 

In 2021 the Commission  disbursed a total of EUR 46.4 billion of  non-repayable support to 20 of the 22 
Member States with submitted and approved recovery and resilience plans. Out of this amount, EUR 36.4 
billion had been paid as pre-financing. Following the fulfilment of milestones by Spain, a further EUR 10 
billion  was  paid  out  before  year-end,  with  EUR  1.5  billion  of  the  original  pre-financing  being  cleared.  A 
further  EUR  0.3  billion  in  pre-financing,  relating  to  the  non-repayable  support  to  Finland,  had  not  yet 
been  disbursed  at  year  end.  In  the  case  of  Ireland,  non-repayable  support  of  EUR  1.0  billion  had  been 
approved, but no financing agreement was signed at year-end. 

11 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Member State 
Austria 

Maximum 
non-repayable 
support* 
3.5 

Total 
signed at 
31.12.2021 
2.2 

Budgetary 
Commitments 
in 2021 
1.1 

EUR billion 
Total  
disbursed at 
31.12.2021 
0.4 

Belgium 

Croatia 

Cyprus 

Czechia 

Denmark 

Estonia 

Finland 

France 

Germany 

Greece 

Ireland 

Italy 

Latvia 

Lithuania 

Luxembourg 

Malta 

Portugal 

Romania 

Slovakia 

Slovenia 

Spain 

Approved 

Bulgaria 

Hungary 

Netherlands 

Poland 

Sweden 

Not yet approved 

5.9 

6.3 

1.0 

7.0 

1.6 

1.0 

2.1 

39.4 

25.6 

17.8 

1.0 

68.9 

1.8 

2.2 

0.1 

0.3 

13.9 

14.2 

6.3 

1.8 

69.5 

3.6 

4.6 

0.8 

3.5 

1.3 

0.8 
-† 

24.3 

16.3 

13.5 
-‡ 

47.9 

1.6 

2.1 

0.1 

0.2 

9.8 

10.2 

4.6 

1.3 

46.6 

291.2 

195.4 

6.3 

7.2 

6.0 

23.9 

3.3 

46.6 

- 

- 

- 

- 

- 

- 

1.8 

2.3 

0.4 

1.8 

0.6 

0.4 

0.8 

12.0 

8.1 

6.7 

0.5 

23.7 

0.8 

1.0 

0.0 

0.1 

4.8 

5.1 

2.3 

0.6 

23.1 

98.0 

- 

- 

- 

- 

- 

- 

0.8 

0.8 

0.1 

0.9 

0.2 

0.1 
-† 

5.1 

2.3 

2.3 

- 

9.0 

0.2 

0.3 

0.0 

0.0 

1.8 

1.9 

0.8 

0.2 

19.0 

46.4 

- 

- 

- 

- 

- 

- 

338.0 

Total 
* Member States with approved plans: funding allocated to each approved recovery and resilience plan. 
Member States without approved plans: maximum allocation in grants according to RRF Regulation. 
The amounts are subject to the update provided for in Article 11(2) of Regulation (EU) 2021/241, which is foreseen 
on 30 June 2022. 
† Finland: signed and disbursed in 2022 only (EUR 0.3 billion). 
‡ Ireland: not signed by the date of the signature of these accounts. Ireland has not requested a pre-financing for 
the non-repayable support. 

195.4 

46.4 

98.0 

12 

 
 
 
 
 
 
 
 
 
 
Loans 

Annual accounts of the European Union 2021 

In  2021  the  Commission  disbursed  a  total  of  EUR  18.0  billion  in  the  form  of  a  pre-financing  to  four 
Member  States  (Cyprus,  Greece,  Italy  and  Portugal),  equivalent  to  13%  of  their  respective  loan 
allocations.  A  further  EUR  1.9  billion  in  pre-financing,  relating  to  the  financial  loan  support  to  Romania, 
had not yet been disbursed at year-end. In the case of Slovenia, financial loan support of EUR 0.7 billion 
had been approved , but no loan agreement was signed at year-end: 

Maximum 
financial loan 
support 
0.2 

Total  
signed at 
31.12.2021 
0.2 

Total 
disbursed at 
31.12.2021 
0.0 

Total 
repaid at 
31.12.2021 
- 

EUR billion 
Total 
outstanding at 
31.12.2021 
0.0 

12.7 

122.6 

2.7 

14.9 

0.7 

153.9 

231.9 

12.7 

122.6 

2.7 

14.9 
-† 

153.2 

- 

1.7 

15.9 

0.4 
-* 

- 

18.0 

- 

- 

- 

- 

- 

- 

- 

- 

- 

1.7 

15.9 

0.4 

- 

- 

18.0 

- 

18.0 

Total 
* Romania: disbursed in 2022 only (EUR 1.9 billion). 
† Slovenia: signed in 2022 only. Slovenia has not requested a pre-financing for the loan. 

153.2 

385.8 

18.0 

Member State 
Cyprus 

Greece 

Italy 

Portugal 

Romania 

Slovenia 

Approved 

Reserve 

According to the loan agreements, Member States will make annual repayments of 5% of the disbursed 
amounts  starting  ten  years  after  the  disbursement  date.  Thus  Portugal,  Greece,  Italy  and  Cyprus  will 
start repaying the loans as from 2032, with the loans maturing in 2051. The repayment schedule for the 
nominal amounts outstanding at year-end is as follows: 

Member State 
Cyprus 

Greece 

Italy 

Portugal 

Total 

Repayment 
period 
2032-2051 

2032-2051 

2032-2051 

2032-2051 

Annual 
repayment 
1 

83 

797 

18 

899 

EUR million 
Total 
repayment 
26 

1 655 

15 938 

351 

17 970 

NGEU contribution to other programmes under the EU budget 

At  year-end  2021,  the  Commission  had  disbursed  a  total  of  EUR  7.2  billion  as  payments  to  other 
programmes  under  the  MFF,  mainly  relating  to  REACT-EU  which  finances  the  European  Regional 
Development Fund (ERDF) and the European Social Fund (ESF): 

MFF-Programme 

REACT-EU 

- of which ERDF 

- of which ESF 

Just Transition Fund 

Rural Development (EAFRD) 

InvestEU 

Horizon Europe 

RescEU 

Total 

EUR billion 
Total 
disbursed at 
31.12.2021 
7.0 

4.9 

2.1 

0.0 

0.1 

0.2 

0.0 

0.0 

7.2 

Total 
approved 
MFF contributions 
50.6 

Budgetary 
Commitments 
in 2021 
39.5 

24.0 

15.4 

0.0 

2.4 

1.7 

1.8 

0.1 

45.5 

31.5 

19.2 

10.9 

8.1 

6.1 

5.4 

2.1 

83.1 

13 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.3.4. 

Liquidity 

Annual accounts of the European Union 2021 

Loans  provided  under  NGEU  do  not  follow  the  strict  back-to-back  principle  of  other  financial  assistance 
instruments.  Instead,  a  diversified  and  pooled  funding  strategy  has  been  developed  for  the  NGEU  that 
has required the implementation of an efficient liquidity management. The objective of the NGEU liquidity 
management  is  to  ensure  that  the  amounts  held  on  the  NGEU  bank  account  are  sufficient  to  meet  all 
upcoming  disbursement  needs  and  to  maintain  a  defined  safety  buffer,  while  avoiding  any  excess 
balances.  For  the  liquidity  management,  the  Commission  has  developed  an  IT  tool  that  allows  for  the 
monitoring of the NGEU account on a daily basis. At year-end 2021 the total funds held in the NGEU off-
budget  account  amounted  to  EUR  18.0  billion.  In  addition,  EUR  1.4  billion  of  funds  were  held  in  the 
Commission’s central treasury account pending disbursement to the budget for MFF-programmes. 

14 

 
 
 
Annual accounts of the European Union 2021 

3. 

SUMMARY OF BUDGET IMPLEMENTATION  

3.1.  Revenue 

In  the  initial  adopted  EU  budget,  signed  by  the  President  of  the  European  Parliament  on  18  December 
2020,  the  total  amount  of  payment  appropriations  for  2021  was  EUR  166  060  million  and  the  total 
amount  to  be  financed  by  own  resources  totalled  EUR  156  867  million.  The  revenue  and  expenditure 
estimates  in  the  initial  budget  are  typically  adjusted  during  the  budgetary  year  by  way  of  amending 
budgets.  Adjustments  in  the  GNI-based  own  resources  ensure  that  budgeted  revenue  matches  exactly 
budgeted expenditure. By doing so, the principle of budget equilibrium is respected, and budget revenue 
and expenditure (payment appropriations) amounts are equal. 

During 2021, six amending budgets were adopted. Taking them into account, the final adopted revenue 
for  2021  amounted  to  EUR  168  011  million  and  the  total  to  be  financed  by  own  resources  was  EUR 
156 993  million.  Member  States'  contributions  in  2021  remained  stable.  The  increase  of  payment 
appropriations (EUR 1 950 million) was mainly financed by the surplus from the previous year. 

Revenue comes from six sources (titles): 

Title 1 : Own resources 

The  collection  of  Traditional  own  resources  (EUR  158  632  million)  was  1.0%  above  the  amounts  in  the 
budget  (EUR  156  993  million).  This  was  due  mainly  to  a  higher  amount  collected  than  expected  in  the 
last two months of the year. 

The  final  Member  States'  VAT,  GNI  and  Plastics  payments  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 euro area actually made their payments. 

Title 2 : Surpluses, balances and adjustments 

The surplus of the previous financial year amounted to EUR 1 769 million. This amount was inscribed in 
the  budget  2021  through  an  amending  budget  and  the  own  resources  contribution  from  the  Member 
States was reduced accordingly. 

For  the  VAT  and  GNI  balances  the  rules  are  set  out  in  Article  10b  of  the  Making  Available  Regulation 
(Council Regulation (EU, Euratom) No 609/2014). According to these rules the total sum of the balances 
are  calculated  in  order  that  the  impact  on  the  EU  budget  be  zero  (‘netting  system’)  and  the  procedure 
does not entail a budgetary amendment. The Commission therefore directly requests the Member States 
to pay the net amounts.  

Title 3 : Administrative revenue 

This title comprises revenue from taxes and levies on the remuneration of staff, amounting to EUR 2 230 
million. 

Title 4 : Financial revenue, default interest and fines 

In  title  4  the  difference  between  budgeted  amount  (EUR  515  million)  and  outturn  (EUR  1  633  million) 
refers mainly to fines in the field of competition. 

Title 5 : Budgetary guarantees, borrowing and lending operations 

This  title  has  increased  significantly  with  the  advent  of  the  NGEU.  NGEU  funds  within  this  title  are 
assigned  revenue.  Title  5  covers  revenue  related  to  guarantees  and  interest  and  repayments  of  loans 
granted. It also channels funds (for the NGEU non-repayable support under the Recovery and Resilience 
Facility and for reinforcement of MFF programmes) from earmarked revenue that Member States receive 
under the European Union Recovery Instrument (EURI). See Financial Highlights of the Year, sections 2.2 
and 2.3. for a comprehensive overview of the NGEU. 

15 

 
 
 
Title 6 : Revenue, contributions and refunds related to Union policies 

Annual accounts of the European Union 2021 

This  title  mainly  concerns  revenue  from  financial  corrections  related  to  structural  and  agricultural  funds 
(ESIF, EAGF and EAFRD). It also includes the participation of third countries in research programmes, the 
clearance  of  accounts 
to  EU 
programmes/activities. A substantial part of this total is made up of assigned revenue, which gives rise to 
the entering of additional appropriations on the expenditure side. 

funds  and  other  contributions  and 

in  agricultural 

refunds 

Total 2021 budget revenue amounted to EUR 239 596 million 

3.2.  Expenditure 

3.2.1.  Budget implementation 

In  2021,  the  first  year  of  the  new  MFF  2021-2027,  the  final  adopted  budget  amounted  to  EUR  166.8 
billion of commitment appropriations and EUR 168.0 billion of payment appropriations. NGEU reinforced 
the  key  programmes  by  an  additional  EUR  421.1  billion  of  commitment  appropriations  and  EUR  55.5 
billion of payment appropriations inscribed in the EU budget as external assigned revenue2. 

The implementation of the 2021 budget was significantly impacted by the delays in the adoption of new 
legal bases and the new rules for structural funds. The majority of the 2021 commitment appropriations 
for structural funds (with a net value of EUR 49 billion) were re-programmed to 2022-2025 according to 
article 7 of the MFF Regulation. In cases allowed by the Financial Regulation and/or new legal bases, the 
appropriations not implemented were carried over to 2022: EUR 4.1 billion of commitment and EUR 4.2 
billion of payment appropriations. In 2021 for the first time the possibility to carry-over unused adopted 
budget  appropriations  to  the  subsequent  year  was  used  by  the  Neighbourhood,  Development  and 
International  Cooperation  Instrument  –  Global  Europe  (NDICI  –  Global  Europe)3,4.  Similar  provisions 
apply  and  were  used  for  the  Brexit  Adjustment  Reserve  and  Solidarity  and  Emergency  Aid  Reserve 
(SEAR). 

2  See Financial Highlights of the Year, sections 2.2 and 2.3 for a comprehensive overview of the NGEU. 
3  Regulation  (EU)  2021/947  of  the  European  Parliament  and  of  the  Council  of  9  June  2021  establishing  the 
Neighbourhood,  Development  and  International  Cooperation  Instrument  –  Global  Europe,  amending  and  repealing 
Decision  No  466/2014/EU  and  repealing  Regulation  (EU)  2017/1601  and  Council  Regulation  (EC,  Euratom)  No 
480/2009, OJ L 209, 14.6.2021, p. 1–78 

4  The  provision  to  automatically  carry  over  of  unspent  commitment  and  payment  appropriations  applies  also  to  the 
other  programmes  in  Heading  6:  European  Instrument  for  International  Nuclear  Safety  Cooperation,  Overseas 
Countries, Territories, and Instrument for Pre-Accession assistance (IPA III) by way of references in their respective 
legal bases to the provisions of NDICI-GE. 

16 

 
 
 
 
                                                 
 
The implementation of the total commitment appropriations in 2021 totalled EUR 268.3 billion: 

Annual accounts of the European Union 2021 

 

 

 

EUR 113.4 billion from the final adopted budget; 

EUR 0.6 billion from appropriations carried-over from 2020; 

EUR 154.3 billion from appropriations stemming from assigned revenue; 

o  of which EUR 143.5 billion from NGEU. 

Total payments made in 2021 totalled EUR 228.0 billion: 

 

 

 

EUR 163.6 billion from the final adopted budget; 

EUR 1.8 billion from appropriations carried-over from 2020; 

EUR 62.6 billion from appropriations stemming from assigned revenue; 

o  of which EUR 53.6 billion from NGEU. 

Total 2021 commitment appropriations implementation per EU policy objectives 

The  2021  implementation  for  all  types  of  appropriations  (budget,  carry-overs  from  previous  year  and 
assigned  revenue)  was  44%  for  commitments  and  92%  for  payments.  Implementation  rates  2021 
excluding  assigned  revenue  showed  68%  for  commitment  appropriations  and  97%  for  payment 
appropriations.  An  important  share  of  the  payments  made  in  2021  related  to  the  completion  of  MFF 
2014-2020. 

Taking  into  account  in  addition  the  carry  overs  and  the  commitments  under  shared  management  which 
were  reprogrammed  in  accordance  with  MFFR  Article  7,  the  implementation  of  the  voted  budget  would 
have reached nearly 100% for both commitment and payment approprations. 

The implementation of the NGEU appropriations reached 34% for the total commitment and 97% for the 
total payment appropriations inscribed in the EU budget. The NGEU committed amount represented 87% 
of the amount authorised5 for commitment in 2021, which stood at EUR 164.6 billion. 

5 The authorised amount for NGEU 2021 concerns the 2021 support in the form of non-repayable support to Member 
States under the Recovery and Resilience Facility (RRF), the Recovery Assistance for Cohesion and the Territories of 
Europe  (REACT-EU)  and  the  additional  money  to  other  European  programmes  or  funds  (Rural  Development, 
InvestEU Fund, Just Transition Fund, Horizon Europe and RescEU). The EURI Regulation provides the legal deadlines 
with  respect  to  the  legal  commitments  while  the  programming  distribution  is  established  based  on  the  planned 
schedule of annual commitments specifically mentioned in the different legal basis of the programmes concerned. 

17 

 
 
 
 
                                                 
 
3.2.2.  Outstanding commitments 

Annual accounts of the European Union 2021 

Outstanding  commitments  (commonly  referred  to  as  RAL  –  reste  à  liquider),  which  are  committed 
amounts  not  yet  paid,  stood  at  EUR  341.6  billion  at  the  end  of  2021.  The  outstanding  commitments 
increased as compared to 2020 (by EUR 38.4 billion) but this increase was smaller than initially forecast, 
as  most  of  the  commitments  for  programmes  under  shared  management  (with  net  value  of  EUR  49 
billion) planned for 2021, were postponed to 2022 and following years, in accordance with Article 7 of the 
MFF  Regulation.  The  reprogramming  of  the  shared  management  implementation  will  contribute  to  a 
further RAL increase in the coming years. 

The  main  driver  of  the  2021  increase  of  the  RAL  was  the  start  of  the  NGEU  (non-repayable  part) 
implementation  –  contributing  EUR  89.9  billion  (26%)  to  the  total  RAL  at  the  end  of  2021.  The  NGEU 
assigned  revenue  will  lead  to  the  increase  of  the  RAL  in  the  coming  years  as  all  commitments  will  be 
entered  by  the  31  December  2023  and  will  be  honoured  by  payments  up  to  31  December  2026,  in 
accordance with Articles 3(4) and 3(9) of the EURI Regulation6. 

3.2.3.  Budget result 

The budget result (surplus) increased from EUR 1.8 billion in 2020 to EUR 3.2 billion in 2021, due to the 
higher than expected revenue from customs duties and fines. 

6  Council Regulation (EU) 2020/2094 of 14 December 2020 establishing a European Union Recovery Instrument to 

support the recovery in the aftermath of the COVID-19 crisis. 

18 

 
 
 
                                                 
 
Annual accounts of the European Union 2021 

4. 

FINANCIAL INSTRUMENTS AND BUDGETARY 
GUARANTEES 

4.1.  Financial instruments financed by the EU budget 

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 guarantees 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.  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. 

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.  

4.2.  Budgetary guarantees: Financial assets held in 

guarantee funds 

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,  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  (the  so-called  External  Lending  Mandate,  or 
ELM, of the EIB) 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  and  NDICI-External  Action  Guarantee,  given  to 
the EIB Group and other financial institutions.  

As of 2021, the provisioning via guarantee funds is held in the Common Provisioning Fund (CPF). The CPF 
is  established  by  the  Financial  Regulation7  to  hold  the  provisions  made  (i.e.  funds  held)  to  cover  the 
financial liabilities arising from financial instruments, budgetary guarantees and financial assistance loans 
as  of  the  2021-2027  MFF.  It  also  includes  some  assets  of  provisioning  covering  financial  liabilities  from 
previous MFFs. 

The  CPF  is  created  and  functions  as  a  single  portfolio,  currently  combining  provisions  for  different  EU 
budgetary guarantees and financial assistance programmes. The resources of the CPF are allocated into 
compartments  for  the  purpose  of  tracing  the  amounts  relating  to  the  various  CPF  contributing 
instruments (budgetary guarantees and financial assistance programmes).  

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  CPF.  The  net  assets  of  the  EFSD  Guarantee  Fund  and  the 
Guarantee Fund for external actions were transferred to the CPF in the course of 2021. 

At 31 December 2021, the Commission holds financial assets in the CPF for the following compartments: 

  Guarantee Fund for external actions - EUR 2.7 billion; 

 

 

 

EFSI Guarantee Fund - EUR 8.5 billion;  

EFSD Guarantee Fund - EUR 0.8 billion; and 

InvestEU Guarantee Fund - EUR 0.3 billion. 

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

July 2018. 

19 

 
                                                 
 
Annual accounts of the European Union 2021 

In  addition,  EUR  92  million  is  held  in  the  Commission  central  treasury  as  a  liquidity  buffer  to  cover  for 
immediate guarantee calls. 

4.3.  Loans and related borrowings for financial assistance 

programmes 

The EU borrowing and lending activities for financial assistance programmes are non-budget operations. 
In  general  and  except  for  NGEU,  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. 

The 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  2021  the  Commission,  acting  on  behalf  of  the  EU, 
operated five main programmes under which it may grant loans: 

  Balance of Payments (BOP) assistance; 

  European Financial Stabilisation Mechanism (EFSM) assistance; 

  Macro-financial assistance (MFA); 

  SURE assistance; and 

  NGEU – for further information on NGEU see section 2. 

20 

 
 
 
Annual accounts of the European Union 2021 

At 31 December 2021, the nominal amount of the loans granted for financial assistance, excluding NGEU 
(see section 2), were: 

Total granted 

Total disbursed 
at year-end 

Total repaid at 
year-end 

EUR billion 
Outstanding at 
year-end 

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

EFSM 
Ireland 
Portugal 

MFA 
Ukraine 
Tunisia 
Jordan 
Other 

BOP 
Latvia 

Total 

8.2 
0.5 
1.0 
0.6 
2.0 
0.2 
5.3 
0.5 
2.5 
27.4 
0.3 
1.0 
0.4 
11.2 
5.9 
4.1 
0.6 
1.1 
21.3 
94.3 

22.5 
24.3  
46.8 

5.0 
1.4 
1.1 
1.5 
9.0 

8.2 
0.5 
1.0 
0.6 
2.0 
0.2 
5.3 
0.5 
2.5 
27.4 
0.3 
1.0 
0.4 
8.2 
5.4 
3.0 
0.6 
1.1 
21.3 
89.6 

22.5 
24.3 
46.8 

5.0 
1.1 
0.9 
1.2 
8.2 

2.9 
2.9 
153.0 

2.9 
2.9 
147.5 

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

- 
- 
- 

(0.6) 
- 
- 
(0.2) 
(0.8) 

(2.7) 
(2.7) 
(3.5) 

8.2 
0.5 
1.0 
0.6 
2.0 
0.2 
5.3 
0.5 
2.5 
27.4 
0.3 
1.0 
0.4 
8.2 
5.4 
3.0 
0.6 
1.1 
21.3 
89.6 

22.5 
24.3 
46.8 

4.4 
1.1 
0.9 
1.0 
7.4 

0.2 
0.2 
144.0 

21 

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

Annual accounts of the European Union 2021 

SURE 

EFSM 

MFA 

2022 
2023 
2024 
2025 
2026 
2027 
2028 
2029 
2030 
2031 
2032 
2033 
2034 
2035 
2036 
2037 
2038 
2039 
2040 
2041 
2042 
2043 
2044 
2045 
2046 
2047 
2048 
2049 
2050 
2051 

Total 

SURE 

 -  
 -  
 -  
 8.0   
 8.0   
 -  
 10.0   
 8.1   
 10.0   
 -  
 -  
 -  
 -     

 8.5   
 9.0   

 -     
 -  

 2.7   
 3.5   
 2.6   
 2.4   
 4.0   
 3.0   
 2.3   
 1.4   
 -  
 7.3   
 3.0   
 2.1   
 -  
 2.0   
 5.7   

 -     

 1.8   

 7.0   

 -  

 -  

 3.0   

 -  
 0.1   
 0.6   
 -  
 0.1   
 0.2   
 0.2   
 0.9   
 0.1   
 1.2   
 0.1   
 0.5   
 0.1   
 2.0   
 1.3   

 -     
 -  

 -  

 -  

 5.0   
 6.0   

10.0 
 -  

89.6 

- 

7.4 

46.8 

BOP 

- 
- 
- 
0.2 

EUR billion 
TOTAL 

 2.7   
 3.6   
 3.2   
 10.6   
 12.1   
 3.2   
 12.5   
 10.4   
 10.1   
 8.5   
 3.1   
 2.6   
 0.1   
 12.5   
 16.0   

 -     

 1.8   

 -     

 7.0   

 -     

 3.0   

 -     
 -     
 -     

 5.0   
 6.0   

 -     
 -     

 10.0   

 -     

0.2 

144.0 

SURE was established in 2020 to provide financial assistance to Member States who are experiencing, or 
are seriously threatened with, a severe economic disturbance caused by the COVID-19 pandemic in 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.  

At the end of 2021, Member States signed loan facility agreements amounting to EUR 94.3 billion and out 
of this amount EUR 89.6 billion were disbursed by year-end 2021. The amount of new loans disbursed in 
2021 amounted to EUR 50.1 billion. 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 has 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 2021, an amount of EUR 9.8 billion maturing during 
the  year  was  extended  until  2036  (EUR  3  billion  for  Ireland  and  EUR  1.8  billion  for  Portugal)  and  until 
2031 (EUR 5 billion for Portugal).  

22 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

The amount granted to Portugal was reduced from EUR 26 billion to EUR 24.3 billion as an amount of EUR 
1.7  billion  expired  and  no  further  disbursements  were  possible.  In  December  2021,  Portugal  requested 
the  maturity  lengthening  for  EUR  2.2  billion  of  the  total  EUR  2.7  billion  loan  due  in  April  2022.  In 
February  2022,  the  Commission  has  borrowed  EUR  2.2.  billion  to  roll-over  the  loan,  which  has  been 
extended by 4.5 years.  

MFA 

The MFA programme is a form of financial assistance extended by the EU to partner countries outside the 
EU experiencing a balance of payments crisis (including EUR 4.4 billion outstanding to Ukraine). 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 International Monetary Fund (IMF) programme. 

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. Under this decision, 
in 2021, the Commission disbursed 10 new loans of a total nominal amount of EUR 1.7 billion to 9 MFA 
beneficiaries. The maturity of the new loans varies between 10 and 15 years. 

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,  BOP  assistance  from  the  EU  is  offered  in  cooperation  with  the  IMF  and 
other international institutions or countries.  

The  amount  granted  to  Latvia  under  BOP  was  reduced  from  EUR  3.1  billion  to  EUR  2.9  billion  as  the 
available amount of EUR 0.2 billion lapsed and could no longer be disbursed. No new operations or loan 
repayments occurred in 2021. 

4.4.  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 (EU, Euratom) No 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. 

23 

 
 
Annual accounts of the European Union 2021 

5. 

FINANCIAL STATEMENTS ANALYSIS 

5.1.  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,  the 
new Plastics own resources, Fines and Recovery of expenses) is as follows: 

Five-year trend of revenue from main non-exchange transactions* 

*2020 and 2021 figures: excluding revenue relating to the UK’s withdrawal from the EU 

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

Consolidated revenue – main developments in 2021 

In  2021,  the  consolidated  revenue,  comprising  all  revenue  categories,  amounted  to  EUR  178.9  billion, 
compared to EUR 224.0 billion the previous year. The main reason for the decrease of EUR 45.1 billion or 
20.1% was the decreasing impact of the UK’s withdrawal from the European Union, which had increased 
the  2020  revenues  by  EUR  47.5  billion,  but  contributed  only  EUR  1.1  billion  to  the  2021  revenues. 
Excluding  this  specific  revenue,  the  consolidated  revenue  of  2021  amounts  to  EUR  177.8  EUR  billlion, 
which is comparable to the adjusted consolidated revenue of the previous year (EUR 176.5 billion). 

As  regards  the  remaining  revenue  categories,  the  main  developments  were  the  introduction  of  the  new 
plastics own resources, an increase in revenues from fines and a decrease in the revenues from GNI: 

24 

 
 
 
 
Annual accounts of the European Union 2021 

  Revenue  from  the  new  plastics  own  resource,  which  was  introduced  in  2021 with  the  entry  into 
force of the new Own Resources Decision 2020/20538, amounted to EUR 5.8 billion. A uniform call 
rate of EUR 0.80 per kilogram applies to the weight of plastic packaging waste generated in each 
Member  State  that  is  not  recycled.  The  plastic  packaging  waste  that  is  not  recycled  in  a  given 
year  is  calculated  as  the  difference  between  the  plastic  packaging  waste  generated  and  the 
plastic packaging waste recycled in that year in a Member State. Bulgaria, the Czechia, Estonia, 
Greece,  Spain,  Croatia,  Italy,  Cyprus,  Latvia,  Lithuania,  Hungary,  Malta,  Poland,  Portugal, 
Romania,  Slovenia  and  Slovakia  are  entitled  to  specific  annual  lump  sum  reductions  in  their 
respective plastics own resource contributions;  

 

Fines revenue increased from EUR 0.5 billion in 2020 to EUR 2.0 billion in 2021. The increase of 
EUR 1.5 billion is due to both the higher number and the higher amounts of fines issued in 2021. 
In 2021 the main fines issued were: EUR 875 million imposed on BMW and the Volkswagen group 
(Volkswagen,  Audi  and  Porsche)  for  colluding  on  technical  development  in  the  area  of  nitrogen 
oxide cleaning and EUR 371 million imposed on Nomura, UBS and UniCredit for the participation 
of a group of traders in a cartel in the primary and secondary market for European Government 
Bonds; 

  Revenue from GNI (gross  national income), the primary element of the EU’s  operating revenue, 
decreased from EUR 125.4 billion in 2020 to EUR 116.0 billion in 2021. The decrease of EUR 9.4 
billion or 7.5% is linked to the increase of the other revenue categories (and the new plastics own 
resource revenues), as the revenue from GNI funds the part of the budget which is not covered 
by other sources of income. 

5.2.  EXPENSES 

The main component of expenses recognised in the consolidated financial statements are expenses 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 119.9 billion or 54.3% of the total expenses 
of EUR 221.0 billion incurred in 2021 (2020: EUR 109.7 billion, 65.9% of the total expenses). The split of 
expenses under the shared management mode and their relative weights are presented below: 

Main expenses under the shared management mode for the financial year 2021 

8  Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the EU. 

25 

 
 
                                                 
 
Annual accounts of the European Union 2021 

The  increase  of  expenses  under  the  shared  management  mode  is  mainly  due  to  increased  expenses 
relating to the ERDF and Cohesion Fund (EUR 5.8 billion) and the ESF (EUR 3.0 billion). This reflects the 
increased implementation towards the end of the programming period of the 2014-2020 MFF as well as 
the  temporary  increase  of  the  co-financing  rate  following  the  implementation  of  the  CRII+  measures. 
Expenses relating to the EAFRD and other rural development instruments and the EAGF increased by EUR 
1.0 billion and EUR 0.3 billion, respectively. 

Following the successful launch of NGEU (see section 2), expenses under the direct management mode, 
which  represents  budget  implementation  by  the  Commission,  executive  agencies  and  trust  funds, 
increased from EUR 22.1  billion in 2020 to EUR 63.0 billion in 2021. The increase of EUR 40.9 billion is 
mainly  due  to  the  non-repayable  support  granted  under  the  NGEU’s  RRF,  which  amounted  to  EUR  42.9 
billion.  Direct  management  expenses  relating  to  Covid-19  vaccination  programmes  decreased  from  EUR 
1.6 billion in 2020 to EUR 0.7 billion in 2021. 

Expenses under the indirect management mode represent the budget implementation by EU agencies, EU 
bodies,  third  countries,  international  organisations  and  other  entities.  In  2021  the  expenses  under  the 
indirect management mode amounted to EUR 10.9 billion, similar to the previous year figure of EUR 11.0 
billion. 

5.3.  ASSETS 

As  at  31  December  2021  total  assets  amounted  to  EUR  414.1  billion  (2020:  EUR  280.0  billion)  –  the 
significant  increase  is  due  to  further  lending  from  the  SURE  instrument  and  the  lending  and  advances 
paid  under  the  new  NGEU  instrument.  The  most  significant  items  were  financial  assets  other  than  cash 
and  cash  equivalents  (EUR  188.6  billion),  pre-financing  (EUR  93.4  billion),  receivables  and  recoverables 
(EUR 72.4 billon) and cash and cash equivalents (EUR 44.9 billion). Other assets, amounting to EUR 14.7 
billion, mainly included property, plant and equipment and intangible assets. 

Composition of assets at 31 December 2021 

26 

 
 
 
 
 
Annual accounts of the European Union 2021 

The significant increase in total assets of EUR 134.0 billion or 47.9% from the previous year was mainly 
due to the following effects: 

 

 

Loans  outstanding  increased  from  EUR  93.3  billion  in  2020  to  EUR  163.6  billion  in  2021.  The 
increase  of  EUR  70.3  billion  or  75.3%  mainly  reflects  the  issuance  of  further  loans  for  financial 
assistance under the SURE instrument (EUR 50.1 billion) and the issuance of loans under the new 
RRF (EUR 18.0 billion); 

Total  pre-financing  increased  from  EUR  62.7  billion  in  2020  to  EUR  93.4  billion  in  2021.  The 
increase of EUR 30.7 billion or 49.0% reflects the non-repayable financial support granted under 
the RRF (EUR 30.8 billion); 

  Cash  and  cash  equivalents  increased  from  EUR  16.7  billion  in  2020  to  EUR  44.9  billion  in  2021. 
The increase of EUR 28.2 billion is mainly due to the liquidity relating to NGEU (EUR 18.0 billion 
held  in  the  NGEU  account,  as  well  as  EUR  1.4  billion  of  funds  held  in  the  Commission’s  central 
treasury  account  pending  disbursement  to  the  budget  for  MFF  programmes).  The  remaining 
increase was caused by the higher amount of non-implemented payment appropriations in 2021, 
fines becoming definitive at year end and additional Traditional own resources cashed but not yet 
budgeted at year-end. 

UK Withdrawal from the EU 

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 Community, 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. The UK will continue to contribute to the EU budget and 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. The EU reports twice a year to the UK on the amounts due and the UK pays these 
on a monthly basis. The reporting is updated each year based on actual figures. 

The obligations under the Withdrawal Agreement create liabilities and receivables for the EU which have 
to be calculated and reflected in the EU’s annual accounts and cover in particular 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). 

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

Pre-financing 

Article 140 
28 620 
- 
28 620 
17 064 
11 556 

Article 142 
14 751 
- 
14 751 
14 486 
265 

Other 
610 
(2 229) 
(1 618) 
(711) 
(908) 

31.12.2021 
43 982 
(2 229) 
41 753 
30 839 
10 913 

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

In 2021, pre-financing, excluding other advances to Member States and contributions to the trust funds 
Bêkou and Africa, amounted to EUR 86.2 billion (2020: EUR 55.5 billion), almost all of which related to 
Commission  activities.  The  increase  of  EUR  30.7  billion  or  55.3%  is  almost  entirely  related  to  the  non-
repayable support granted under the RRF, which resulted in an increase of pre-financing related to direct 
management from EUR 14.3 billion in 2020 to EUR 43.7 billion in 2021: 

27 

 
 
 
 
 
 
 
 
Commission pre-financing by management mode 

Annual accounts of the European Union 2021 

The  level  of  pre-financing  granted  under  MFF  programmes  is  significantly  influenced  by  the  respective 
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  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 pre-financing is maintained at an appropriate level. A balance has to be 
struck between ensuring sufficient funding for projects and the timely recognition of expenditure. 

5.4.  LIABILITIES 

As at 31 December 2021 the total liabilities were EUR 496.4 billion (2020: EUR 313.5 billion) – the huge 
increase is driven by the borrowings taken out in 2021 under the SURE and NGEU instruments. The most 
significant  items  were  borrowings  for  NGEU  and  financial  assistance  (EUR  236.7  bíllion),  pension 
obligations  and  other  post-employment  benefits  liabilities  (EUR  122.5  billion),  accrued  charges  and 
deferred income (EUR 78.1 billion), and payables to third parties (EUR 46.4 billion): 

28 

 
 
 
 
Composition of liabilities at 31 December 2021  

Annual accounts of the European Union 2021 

The  significant  increase  of  EUR  82.9  billion  or  58.3%  over  the  previous  year  was  mainly  due  to  the 
following effects: 

  Borrowings increased from EUR 93.2 billion in 2020 to EUR 236.7 billion in 2021. The increase of 
EUR 143.5 billion mainly relates to the RRF (EUR 91.0 billion) and to additional borrowings under 
SURE (EUR 50.1 billion); 

  Accrued charges and deferred income increased from EUR 64.6 billion in 2020 to EUR 78.1 billion 
in  2021.  The  increase  of  EUR  13.5  billion  or  20.9%  mainly  relates  to  the  new  RRF  (EUR  8.2 
billion)  and  the  implementation  of  the  2014-2020  MFF  under  the  ERDF  and  the  Cohesion  Fund 
(EUR 1.9 billion); 

 

Payables increased from EUR 32.4 billion in 2020 to EUR 46.4 billion in 2021. The increase of EUR 
14.0  billion  or  43.2%  is  primarily  due  to  the  RRF  (EUR  19.1  billion)  and  a  decrease  in  amounts 
payable in the area of cohesion, where the amount of cost claims that were received before the 
year-end was lower than in the previous year (EUR 5.3 billion). 

29 

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

Annual accounts of the European Union 2021 

Net assets 

The excess of liabilities over assets at 31 December 2021 amounted to EUR 82.3 billion (2020: EUR 33.4 
billion). The considerable increase of EUR 48.9 billion is mainly due to the borrowings in relation to non-
repayable  support  taken  out  under  NGEU  in  2021  (resulting  in  an  increase  of  direct  management 
expenses of EUR 42.9 billion). It is noted that 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 following years and funded using future budgets; the related 
revenues will only be accounted for in future periods. Apart from the borrowings for NGEU, which are to 
be repaid between 2028 and 2051, and the employee benefits liability, which is to be paid over several 
decades, the most significant amounts to be highlighted are the activities relating to the EAGF, the bulk 
of which is usually paid in the first quarter of the following year. 

30 

 
 
 
 
Annual accounts of the European Union 2021 

6. 

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. 

6.1.  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 principles9 of subsidiarity and proportionality. In order 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. 

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  current  2021-2027 
multiannual  financial  framework  was  adopted  on  17  December  2020.  The  2021-2027  multiannual 
financial framework is complemented by the temporary recovery instrument NextGenerationEU. 

Annual budget 

The annual budget is prepared by the Commission. The European Parliament 
and  the  Council  agree  (usually  by  mid  December)  on  the  budget  for  the 
following year, 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 four types of own resources: Traditional own resources (mainly custom duties), the 
own resource based on value added tax (VAT), the own resource based on non-recycled plastic packaging 
waste (introduced in 2021) 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.  

Management modes 

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

9  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 2021 

  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)10  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. 

6.2.  GOVERNANCE AND ACCOUNTABILITY 

6.2.1. 

Institutional structure 

The  EU  has  an  institutional  framework  through  which  it  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.  The  Financial  Regulation,  together  with  the  applicable 
accounting rules, defines which of these entities are included in the EU consolidated accounts (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.11 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. 

6.2.2. 

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  Communication12  on 
Governance in the European Commission. 

10 Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial 
rules applicable to the general budget of the Union and repealing Council Regulation (EU,  Euratom) No 966/2012 – 
OJ L 193 of 30 July 2018, p. 1. 

11  See Article 317 TFEU. 
12  C(2020) 4240 of 24.6.2020. 

32 

 
                                                 
 
Annual accounts of the European Union 2021 

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,  as  part  of  his  or  her 
nomination to the European Parliament the objectives he or she intends to pursue in the form of political 
guidelines.  The  President  decides  on  the  internal  organisation  of  the  Commission,  ensuring  that  it  acts 
consistently, efficiently and as a collegiate body. 

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.  

Under  the  authority  of  the  President  and  in  close  cooperation  with  the  Member  of  the  Commission  in 
charge of budget, human resources and administration, and with the involvement of the Presidential and 
central services, the Corporate Management Board provides coordination, oversight, advice and strategic 
orientations. 

The  internal  arrangements  define  a  coherent  set  of  robust  controls  and  management  tools  which  allow 
the College of Commissioners to assume political responsibility for the work of the Commission.13 

6.2.3. 

The Commission’s financial management 

In the Commission, the roles and responsibilities in financial management are clearly defined (e.g. in the 
Financial  Regulation  and  the  Internal  Rules14)  and  applied  accordingly.  As  authorising  officers  by 
delegation,  the  Commission’s  Directors-General  and  Heads  of  Service  are  responsible  for  the  sound 
financial  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  Financial  Regulation  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  budget15  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.  

13  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). 

14  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 and JRC). 

15  https://ec.europa.eu/info/publications/integrated-financial-and-accountability-reporting_en. 

33 

 
                                                 
 
Annual accounts of the European Union 2021 

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. 

6.2.4.  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. 

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. 

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  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 2021 

NOTE ACCOMPANYING THE 
CONSOLIDATED ACCOUNTS 

The  consolidated  annual  accounts  of  the  European  Union  for  the  year  2021  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 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 

17 June 2022 

35 

 
 
 
 
 
 
Annual accounts of the European Union 2021 

EUROPEAN UNION 
FINANCIAL YEAR 2021 

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 2021 

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 ............................................................. 62 

NOTES TO THE STATEMENT OF FINANCIAL PERFORMANCE ........................ 99 

CONTINGENT LIABILITIES AND ASSETS ................................................ 107 

BUDGETARY AND LEGAL COMMITMENTS ............................................... 113 

FINANCIAL RISK MANAGEMENT ............................................................ 117 

RELATED PARTY DISCLOSURES ............................................................ 136 

EVENTS AFTER THE BALANCE SHEET DATE ............................................ 138 

SCOPE OF CONSOLIDATION ................................................................. 139 

37 

 
 
 
Annual accounts of the European Union 2021 

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 
31.12.2021  31.12.2020 

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 

 769 
12 669 
1 192 
181 874 
60 792 
40 642 
297 938 

6 744 
32 656 
31 796 
 84 
44 860 
116 141 
414 078 

 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 

(122 466) 
(2 950) 
(214 974) 
(340 391) 

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

 (398) 
(31 149) 
(46 372) 
(78 068) 
(155 987) 
(496 377) 

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

(82 299) 

(33 418) 

1 325 
(83 624) 
(82 299) 

5 062 
(38 480) 
(33 418) 

* The European Parliament adopted a budget on 24 November 2021 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  (Regulation  (EEC,  Euratom,  ECSC)  No  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 2021 

STATEMENT OF FINANCIAL PERFORMANCE 

Note 

2021 

2020      

EUR million 

REVENUE 
Revenue from non-exchange transactions 
GNI resources 
Traditional own resources 
VAT resources 
Plastics own 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 

3.13 

3.13 

3.13 
3.14 
3.15 
3.16 

115 955 
20 590 
18 340 
5 831 
1 990 
1 794 
1 122 
6 737 
172 357 

5 092 
1 497 
6 589 
178 946 

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

3 434 
1 404 
4 838 
224 028 

(40 829) 

(40 461) 

(15 451) 

(14 467) 

(46 932) 

(16 727) 
(4 835) 

(41 118) 

(13 677) 
(2 701) 

(63 000) 

(22 094) 

(3 154) 

(3 530) 

(4 512) 
(3 225) 
(12 417) 
(4 201) 
(5 762) 
(221 046) 
(42 100) 

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

39 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

CASHFLOW STATEMENT 

Economic result of the year 
Operating activities 
Amortisation 
Depreciation 
(Reversal of) impairment losses on investments 
(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 (other than NGEU borrowings) 
Increase/(decrease) in payables 
Increase/(decrease) in accrued charges and deferred income 
Prior year budgetary surplus taken as non-cash revenue 

Remeasurements in employee benefits liabilities (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 non-derivative financial assets at fair value 
through surplus or deficit* 

(Increase)/decrease in derivative financial assets at fair value through 
surplus or deficit 

Financing activities 
Increase/(decrease) in borrowings related to NGEU 
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 

*The 2020 figure relates to the (increase)/decrease in available for sale financial assets. 

2021 
(42 100) 

 116 
1 054 
– 
(70 259) 
(30 699) 
2 055 
 (4) 
6 447 
(2 057) 
60 075 
13 964 
13 484 
(1 769) 

EUR million 
2020 
57 416 

 113 
1 047 
– 
(40 624) 
(11 301) 
(50 519) 
 (12) 
18 360 
 581 
40 531 
5 166 
(2 645) 
(3 218) 

(3 257) 

(15 155) 

(1 757) 

 63 

(2 307) 

(1 566) 

 (604) 

 3 

(4 636) 

(1 180) 

 (629) 

 (62) 

91 000   
28 118 

28 118 
16 742 
44 860 

(3 004) 

(3 004) 
19 745 
16 742 

40 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENT OF CHANGES IN NET ASSETS 

Annual accounts of the European Union 2021 

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 
Impact of revised EAR 11 (see Note 1) 
BALANCE AS AT 01.01.2021 
Movement in Guarantee Fund reserve 
Fair value movements 
Remeasurements in employee benefits liabilities 
Other 
2020 budget result credited to Member States 
Economic result of the year 
BALANCE AS AT 31.12.2021 

Amounts to be called from Member States  
Accumulated Surplus/(Deficit) 
(77 560) 
 (173) 
– 
(15 155) 
 210 
(3 218) 
57 416 
(38 480) 
1 719 
(36 761) 
– 
– 
(3 257) 
 262 
(1 769) 
(42 100) 
(83 624) 

Other reserves  Fair value reserve 
 391 
– 
 105 
– 
– 
– 
– 
 496 
 (496) 
– 
– 
– 
– 
– 
– 
– 
– 

4 646 
 173 
– 
– 
 (252) 
– 
– 
4 566 
(3 043) 
1 523 
– 
– 
– 
 (198) 
– 
– 
1 325 

EUR million 
Net Assets  
(72 523) 
– 
 105 
(15 155) 
 (42) 
(3 218) 
57 416 
(33 418) 
(1 820) 
(35 238) 
– 
– 
(3 257) 
 63 
(1 769) 
(42 100) 
(82 299) 

41 

 
 
 
 
 
 
 
 
  
  
Annual accounts of the European Union 2021 

NOTES TO THE FINANCIAL STATEMENTS 

Note that in the following tables amounts concerning the UK in relation to MFFs up to end 2020 are still 
shown  under  the  heading  Member  States  as  although  the  UK  withdrew  from  the  Union  on  1  February 
2020, in accordance with the Withdrawal Agreement, it continues to have a financial relationship with the 
Union equivalent to that of a Member State for these periods. 

42 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

1. 

SIGNIFICANT ACCOUNTING POLICIES 

1.1.  LEGAL BASIS AND ACCOUNTING RULES 

The accounts of the EU are kept in accordance with Regulation (EU, Euratom) 2018/1046 of the European 
Parliament and of the  Council of 18 July 2018 on the financial rules applicable to the general budget of 
the Union, 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 adopted but not yet effective at 31 December 2021 

There are no new EAR adopted but not yet effective at 31 December 2021. 

Revised EAR effective for annual periods beginning on or after 1 January 2021 

On 17 December 2020, the Accounting Officer of the Commission adopted the revised EAR 11 ‘Financial 
instruments’, which establishes the financial reporting principles for financial assets and financial liabilities 
and is based on the new IPSAS 41 ‘Financial Instruments’, the amended IPSAS 28 ‘Financial Instruments: 
Presentation’ and the amended IPSAS 30 ‘Financial Instruments: Disclosures’ (issued in August 2018). 

The  revised  EAR  11  is  mandatorily  effective  as  of  1  January  2021,  with  any  changes  from  the  initial 
application  accounted  for  on  that  date,  thus  not  requiring  restatement  of  prior  period  amounts.  As  a 
result, the financial assets, financial liabilities, exchange receivables and interest revenue/expense as at 
31  December  2020  presented  in  these  accounts  have  been  accounted  for  in  accordance  with  the 
accounting  policies  as  stated  in  the  2020  EU  financial  statements  under  notes  1.5.5,  1.5.8  (only  for 
exchange transactions), 1.5.12 and 1.6.1 (only for exchange transactions). 

The main changes and their 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  and 
requires the use of two criteria: the entity’s model for managing its financial assets and the contractual 
cash-flow characteristics of those assets. Depending on these criteria, financial assets are classified in the 
following  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 or deficit’ (FVSD). 

On 1 January 2021, the application of the new criteria led to the reclassification of all equity investments 
and debt securities from ‘available for sale’ to financial assets at FVSD. The related fair value reserve was 
reclassified – within Net Assets – to accumulated surplus or deficit. 

New impairment model 

Whereas  the  previous  impairment  model  was  based  on  incurred  losses,  the  revised  EAR  11  has 
introduced a forward-looking impairment model based on expected credit losses (ECL) over the lifetime 
of the financial asset. The ECL takes into account possible default events and the evolution of the credit 
quality of the financial assets. The new impairment model applies to all financial assets measured at AC 
or at FVNA as well as to loan commitments and financial guarantee contracts. 

In  particular,  on  1  January  2021,  the  application  of  the  new  impairment  model  to  the  financial  assets 
classified  as  AC,  led  to  the  recognition  of  impairment  on  the  loans  for  financial  assistance  provided  to 
partner countries under the MFA and Euratom programmes. 

43 

 
Financial guarantee accounting 

Annual accounts of the European Union 2021 

Under  the  previous  EAR  11,  most  financial  guarantees  –  in  particular  those  provided  at  no  or  nominal 
consideration  –  were  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 a loss. 

The  revised  EAR  11  requires  the  application  of  the  financial  guarantee  accounting  requirements  to  all 
financial guarantee contracts. The measurement of the financial guarantee liability relies on the fair value 
of the guarantee at initial recognition and the evolution of the expected credit losses from the guaranteed 
debts portfolio. See note 1.5.12. 

As  a  consequence,  on  1  January  2021  the  existing  financial  guarantee  contracts  were  reclassified  from 
financial  provisions  to the  financial  guarantee  liability  category  and  re-measured  in  accordance  with  the 
requirements of the revised EAR 11. This change led to an increase in the financial liabilities, in particular 
in  relation  to  the  guarantees  provided  to  the  EIB  Group  under  the  External  Lending  Mandate.  Following 
the accounting treatment change and the recognition of the financial guarantee contract liability for the 
ELM, the reserve for the Guarantee Fund for external actions – in Net Assets until 31 December 2020 – 
has been released to the accumulated surplus or deficit. 

The following table shows the original measurement categories under the EAR 11 as applied to the 2020 
EU financial statements and the new measurement categories under the revised EAR 11 for the European 
Union's financial assets and liabilities as at 1 January 2021: 

Measurement 

Measurement 

Category              

Category           

Net carrying 
amount 
31.12.2020 

Revised EAR 11 

EUR million 
Net carrying 
amount 
01.01.2021 

Financial assets  

Loans 

Prior EAR 11 

Loans and 
receivables 

Debt and equity investments  Available for Sale 
Derivative assets 

FVSD 

Receivables 

Loans and 
receivables 

Cash and cash equivalents 

Available for Sale 

93 309 

Amortized Cost 
FVSD 
19 587  FVSD 
 199  FVSD 

3 450 

Amortized Cost 
FVSD 
16 742  Amortized Cost 

Financial liabilities  

Financial guarantees 

Borrowings 
Other financial liabilities 
Derivative liabilities 
Payables 

Financial Guarantee 
Liability 
Provisions (EAR10) 
Amortized Cost 
Amortized Cost 
FVSD 
Amortized Cost 

 (90)  Financial 

(2 523) 

Guarantee Liability 

(93 192)  Amortized Cost 
(1 761)  Amortized Cost 

 (4)  FVSD 

(32 408)  Amortized Cost 

93 575 
 2 
19 587 
 199 
3 485 
3 482 
16 742 

(7 889) 

(93 521) 
(1 761) 
 (4) 
(32 408) 

The following table analyses the impact of the transition to the revised EAR 11 on the European Union’s 
financial  assets,  receivables,  financial  provisions  and  financial  liabilities.  It  reconciles  the  carrying 
amounts from their previous measurement category under the EAR 11 as applied to the 2020 EU financial 
statements,  to  their  new  measurement  categories  upon  transition  to  the  revised  EAR  11  on  1  January 
2021: 

44 

 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
Annual accounts of the European Union 2021 

Balance at 
31.12.2020 

Reclassification  Remeasurement 

EUR million 
Balance at 
01.01.2021 

Available for sale financial 
assets 
Opening balance brought forward 
Transfer from AFS to FVSD 
Adjusted opening balance 

Financial assets at FVSD  
Opening balance brought forward 
Transfer from AFS to FVSD 
Transfer from loans to FVSD 
Adjusted opening balance 
Financial assets at amortized 
cost (in 2020 accounts: Loans) 
Opening balance brought forward 
Remeasurement: Effective Interest 
Rate  
Remeasurement: Expected Credit 
Loss 
Reclassification to FVSD 
Adjusted opening balance 
Total Financial Assets 
(Note 2.4) 
Receivables 
Opening balance brought forward 
Remeasurement: Expected Credit 
Loss 
FGC - receivable leg: 
remeasurement 
Adjusted opening balance 
Total Receivables 
(Note 2.6.2) 
Financial Provisions 
Opening balance brought forward 
Transfer to Financial Guarantee 
Liabilities  
Adjusted opening balance 
Total Financial provisions 
(Note 2.10) 
Financial guarantee liabilities 
Opening balance brought forward 
Transfer from Financial Provisions 
FGC - payable leg: remeasurement 
Adjusted opening balance 
Financial liabilities at amortized 
cost  
Opening balance brought forward 
Remeasurement: Effective Interest 
Rate  
Adjusted opening balance 

Financial liabilities at FVSD  
Opening balance brought forward 
Adjusted opening balance 
Total Financial liabilities 
(Note 2.11) 

Total impact of the EAR 11 
revision 

19 587 

 199 

93 309 

113 095 

3 450 

(19 587) 

19 587 
 2 

– 

19 788 

 329 

 (60) 

 (2) 

– 

93 575 

 269 

113 363 

 33 

3 484 

3 450 

– 

3 517 

(2 523) 

2 522 

(2 523) 

2 522 

– 

 (90) 

(2 522) 

6 967 

6 967 

 (1) 

 (1) 

(94 954) 

 (4) 

(5 277) 

(7 889) 

 (329)   

(95 283) 

 (4) 

(95 048) 

(2 522) 

(5 606) 

(103 175) 

(1 820) 

45 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

The following table analyses the impact of the transition to the revised EAR 11 on the European Union's 
Net Assets as at 1 January 2021: 

 Balance at 
31.12.2020  

Release of 
reserves 

Other impacts 
on net assets 

EUR million 
 Balance at 
01.01.2021  

Reserves 
Opening balance brought forward 
Release of FV reserve 
Release of GF reserve 
Adjusted opening balance 
Accumulated Surplus/(Deficit) 
Opening balance brought forward 
Release of FV reserve 
Release of GF reserve 
Remeasurement of assets and 
liabilities 
Adjusted opening balance 
Total net assets 

5 062 

(38 480)   

 (496) 
(3 043)   

 496   
3 043   

1 523 

(33 418) 

– 

(1 820) 

(35 238) 

(1 820)   

(36 761) 

The  following  table  reconciles  the  prior  period’s  closing  impairment  allowance  measured  in  accordance 
with  the  EAR  11  as  applied  to  the  2020  EU  financial  statements  and  financial  provisions  measured  in 
accordance  with  EAR  10  to  the  new  impairment  allowance  measured  in  accordance  with  the  revised 
EAR 11 at 1 January 2021: 

31.12.2020 

Impairment allowance/ 
Financial provisions  

12-months 
Expected 
Credit Loss 

01.01.2021 
Life-time 
Expected 
Credit Loss 

EUR million 

Total 
impairment 
allowance 

 (739) 

 (726) 
 (13) 

 (190) 

(2 523) 

 (49) 

– 
 (49) 

 (25) 

– 
 (25) 

 (156) 

 (73) 

– 
 (73) 
 (156) 

 (859) 

(5 143) 

(6 002) 

Financial assets at amortized 
cost, of which: 
Subrogated loans*  
Other loans 
Receivables 
Financial guarantee contracts 

* Until  2020  subrogated  loans  (defaulted  loans  for  which  the  EIB  group  has  issued  a  guarantee  call  on  the  EU 
guarantee)  had  been  initially  recognised  at  the  amount  paid  to  settle  the  guarantee  call  and  immediately  fully 
impaired for the amount of the credit losses already incurred at the time of subrogation, leading to a nil net carrying 
amount on the balance sheet. Any interest accrued after the initial recognition was also fully impaired. In accordance 
with  the  revised  EAR  11,  subrogated  loans  are  now  classified  as  purchased  or  originated  credit  impaired  loans 
(‘POCI’),  thus  the  impairment  allowance  only  relates  to  changes  of  the  expected  credit  losses  incurred  after  initial 
recognition.  Moreover,  under the  revised  EAR 11 for  POCI loans,  interest only  accrues on  the  net  carrying  amount. 
Therefore, the impairment allowance recognised as at the end of 2020 for the subrogated loans has been written off 
against  the  gross  carrying  amount  of  the  subrogated  loans on 1  January 2021, without  any  impact  on  the  carrying 
amount of those loans on the balance sheet. 

46 

 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

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 55 controlled entities and 1 associate (2020: 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). 

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  2021,  8  entities  have  been  classified  as  such  minor  entities  (2020:  8 
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 

47 

 
Annual accounts of the European Union 2021 

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  in  accordance  with  Article  243  of  the  Financial  Regulation. 
The accounting year begins on 1 January and ends on 31 December. 

1.4.1.  Currency and basis for conversion 

Functional and reporting currency 

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

Transactions and balances 

Foreign currency transactions are translated into euros using the exchange rates prevailing at the dates 
of the transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency 
transactions  and  from  the  re-translation  at  year-end  exchange  rates  of  monetary  assets  and  liabilities 
denominated in foreign currencies are recognised in the statement of financial performance. 

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 

31.12.2021 
1.9558 
24.8580 
7.4364 
0.8403 
7.5156 
369.1900 

31.12.2020  Currency 
1.9558  PLN 
26.2420  RON 
7.4409  SEK 
0.8990  CHF 
7.5519  JPY 
363.8900  USD 

31.12.2021 
4.5969 
4.949 
10.2503 
1.0331 
130.3800 
1.1326 

31.12.2020 
4.5597 
4.8683 
10.0343 
1.0802 
126.4900 
1.2271 

1.4.2.  Use of estimates 

In  accordance  with  IPSAS  and  generally  accepted  accounting  principles,  the  financial  statements 
necessarily  include  amounts  based  on  estimates  and  assumptions  by  management  based  on  the  most 
reliable information available. Significant estimates include, but are not limited to: amounts for employee 
benefit liabilities, financial risk of accounts receivable and the amounts disclosed in the notes concerning 

48 

 
Annual accounts of the European Union 2021 

financial  instruments,  impairment  allowance  for  financial  assets  at  amortised  cost  and  for  financial 
guarantee  contract  liabilities,  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  that  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. 

1.5.2. 

Property, plant and equipment 

All  property,  plant  and  equipment  are  stated  at  historical  cost  less  accumulated  depreciation  and 
impairment losses. Cost includes expenditure that is directly attributable to the acquisition, construction 
or transfer of the asset. 

Subsequent  costs  are  included  in  the  asset’s  carrying  amount  or  recognised  as  a  separate  asset,  as 
appropriate,  only  when  it  is  probable  that  future  economic  benefits  or  service  potential  associated  with 
the  item  will  flow  to  the  EU  and  its  cost  can  be  measured  reliably.  Repairs  and  maintenance  costs  are 
charged to the statement of financial performance during the financial period in which they are incurred. 

Land is not depreciated as it is deemed to have an indefinite useful life. Assets under construction are not 
depreciated, as these assets are not yet available for use. Depreciation on other assets is calculated using 
the straight-line method to allocate their cost less their residual values over their estimated useful lives, 
as follows: 

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

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

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

49 

 
Leases 

Annual accounts of the European Union 2021 

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

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

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

1.5.3. 

Impairment of non-financial assets 

An impairment is a loss in the future economic benefits or service potential of an asset, over and above 
the systematic recognition of the loss of the asset's future economic benefits or service potential through 
amortisation or depreciation (as applicable). Assets that have an indefinite useful life are not subject to 
amortisation/depreciation  and  are  tested  annually  for  impairment.  Assets  that  are  subject  to 
amortisation/depreciation are tested for impairment whenever there is an indication at the reporting date 
that  an  asset  may  be  impaired.  An  impairment  loss  is  recognised  for  the  amount  by  which  the  asset’s 
carrying  amount  exceeds  its  recoverable  (service)  amount.  The  recoverable  (service)  amount  is  the 
higher of an asset’s fair value less costs to sell and its value in use. 

Intangible  assets  and  property,  plant  and  equipment  residual  values  and  useful  lives  are  reviewed,  and 
adjusted  if  appropriate,  at  least  once  per  year.  If  the  reasons  for  impairments  recognised  in  previous 
years no longer apply, the impairment losses are reversed accordingly. 

1.5.4. 

Investments accounted for using the equity method 

Participations in associates and joint ventures 

Investments  accounted  for  using  the  equity  method  are  initially  recognised  at  cost,  with  the  initial 
carrying amount subsequently being increased or decreased to recognise further contributions, the EU’s 
share  of  the  surplus  or  deficit  of  the  investee,  any  impairments  and  dividends.  The  initial  cost  together 
with all movements give the carrying amount of the investment in the financial statements at the balance 
sheet date. The EU’s share of the investee’s surplus or deficit is recognised in the statement of financial 
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. 

50 

 
Annual accounts of the European Union 2021 

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 
financial assets at FVSD. 

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 at initial recognition 

The classification depends on two criteria: 

 

 

The  financial  assets  management  model.  This  requires  an  assessment  of  how  the  EU  manages 
the financial assets to generate cash flows and to achieve its objectives and how it evaluates the 
performance on financial assets. 

The  asset  contractual  cash-flow  characteristics.  This  requires  an  assessment  of  whether  the 
contractual cash flows are solely payments of principal and interest on the principal outstanding. 
The interest is the consideration for the time value of money, credit risk and other basic lending 
risks and costs. 

Following  assessment  based  on  these  criteria,  the  financial  assets  can  be  classified  in  three  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 or deficit (‘FVSD’). 

Financial  assets  with  contractual  cash  flows  that  represent  solely  principal  and  interests  are  classified 
depending on the entity’s management model. If the management model is to hold the financial assets in 
order to collect contractual cash flows, the financial assets are classified at AC. If the management model 
is  to  hold  the  financial  assets  both  to  collect  contractual  cash  flows  and  to  sell  the  financial  assets,  the 
classification is FVNA. If the management model is different to these two models (e.g. the financial assets 
are  held  for  trading  or  held  in  a  portfolio  managed  and  evaluated  on  a  fair  value  basis),  the  financial 
assets are classified as FVSD. 

Financial  assets  with  contractual  cash  flows  that  do  not  represent  only  principal  and  interests,  but 
introduce exposure to risks and  volatility other than those present in a basic lending arrangement (e.g. 
changes in equity prices), are classified as FVSD regardless of the management model. 

At initial recognition, the EU classifies the financial assets as follows: 

(i)  Financial assets at amortised cost 

The EU classifies in this category: 

  Cash and cash equivalents; 
 
 

Loans (including term deposits with original maturity of more than three months); 
Exchange  receivables,  except  for  the  financial  guarantee  contract  receivable  leg  classified  as 
financial asset at fair value through surplus or deficit. 

These non-derivative financial assets meet two conditions: The EU’s management model is to hold them 
in order to collect the contractual cash flows. Furthermore, on specified days, there are contractual cash 
flows that represent only principal and interest on the outstanding principal. 

Financial assets at amortised cost are included in current assets, except for those with maturity of more 
than 12 months from the reporting date. 

(ii)  Financial assets at fair value through net assets/equity 

These  non-derivatives  financial  assets  have  contractual  cash  flows  that  represent  only  principal  and 
interest on the outstanding principal. In addition, the management model is to hold the financial assets 
both to collect contractual cash flows and to sell the financial assets. 

51 

 
 
Annual accounts of the European Union 2021 

Assets  in  this  category  are  classified  as  current  assets,  if  they  are  expected  to  be  realised  within  12 
months from the reporting date. 

The EU does not hold such assets at 31 December 2021. 

(iii) Financial assets at fair value through surplus or deficit 

The  EU  classifies  the  following  financial  assets  as  FVSD  because  the  contractual  cash  flows  do  not 
represent only principal and interests on the principal: 

  Derivatives; 
 
  Other equity-type investments (e.g. Risk Capital Operations). 

Equity investments and investments in money market funds or in pooled portfolio funds; 

In addition, the EU classifies the debt securities it holds as FVSD because the portfolios of debt securities 
are managed and evaluated on a portfolio fair value basis (e.g. Common Provisioning Fund under Article 
212 of the Financial Regulation). 

Assets  in  this  category  are  classified  as  current  assets,  if  they  are  expected  to  be  realised  within  12 
months from the reporting date. 

Initial recognition and measurement 

Purchases of financial assets at fair value through net assets/equity and at fair value through surplus or 
deficit  are  recognised  on  their  trade-date  –  the  date  on  which  the  EU  commits  to  purchase  the  asset. 
Cash equivalents and loans are recognised when cash is deposited in a financial institution or advanced to 
borrowers. 

Financial  assets  are  initially  measured  at  fair  value.  For  all  financial  assets  not  carried  at  fair  value 
through  surplus  or  deficit,  the  transactions  costs  are  added  to  the  fair  value  at  initial  recognition.  For 
financial assets carried at fair value through surplus or deficit the 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  unless  the 
transaction is not at arm’s length i.e. at no or at nominal consideration for public policy purposes. In this 
case, the difference between the fair value of the financial instrument and the transaction price is a non-
exchange  component  which  is  recognised  as  an  expense  in  the  statement  of  financial  performance.  In 
this  case,  the  fair  value  of  a  financial  asset  is  derived  from  current  market  transactions  for  a  directly 
equivalent  instrument.  If  there  is  no  active  market  for  the  instrument,  the  fair  value  is  derived  from  a 
valuation technique that uses available data from observable markets. 

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  under  the  Recovery  and  Resilience  Facility  and  loans  for  financial  assistance  are  initially 
measured at their nominal amount, with the transaction price considered the fair value of the loan. This is 
because: 

 

The  ‘market  environment’  for  EU  lending  is  very  specific  and  different  from  the  capital  market 
used to issue commercial or government debt. 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 in the capital markets; it only borrows funds for the purpose of lending. 
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  should  be  the  interest  rate 
charged. 

52 

 
 
 
 
Subsequent measurement 

Annual accounts of the European Union 2021 

Financial  assets  at  amortised  cost  are  subsequently  measured  at  amortised  cost  using  the  effective 
interest method. 

Financial  assets  at  fair  value  through  net  assets/equity  are  subsequently  measured  at  fair  value.  Gains 
and  losses  from  changes  in  the  fair  value  are  recognised  in  the  fair  value  reserve,  except  for  foreign 
exchange translation differences on monetary assets, which are recognised in the statement of financial 
performance. 

Financial  assets  at  fair  value  through  surplus  or  deficit  are  subsequently  measured  at  fair  value.  Gains 
and  losses  from  changes  in  the  fair  value  (including  those  stemming  from  foreign  currency  translation 
and any interests earned) are included in the statement of financial performance in the period in  which 
they arise. 

Fair value at subsequent measurement 

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  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. 

Impairment of financial assets 

The  EU  recognises  and  measures  an  impairment  loss  for  expected  credit  losses  on  financial  assets  that 
are measured at amortised cost and at fair value through net assets/equity. 

The expected credit loss (ECL) is the present value of the difference between the contractual cash flows 
and  the  cash  flows  that  the  EU  expects  to  receive.  The  ECL  incorporates  reasonable  and  supportable 
information that is available without undue cost or effort at the reporting date. 

The ECL is measured with a three stage model that takes into account probability weighted default events 
during  the  lifetime  of  the  financial  asset  and  the  evolution  of  credit  risk  since  the  origination  of  the 
financial asset. For loans, origination is the date of the irrevocable loan commitment. 

If there is no significant increase in credit risk since origination (‘stage 1’), the impairment loss is the ECL 
from possible default events in the next 12 months from the reporting date (’12 months ECL’). If there is 
a significant increase in credit risk since origination (‘stage 2’), or if there is objective evidence of a credit 
impairment (‘stage 3’), the impairment loss equals the ECL from possible default events over the whole 
lifetime of the financial asset (‘lifetime ECL’) (see note 6.5). 

For  assets  at  amortised  cost,  the  asset’s  carrying  amount  is  reduced  by  the  amount  of  the  impairment 
loss  which  is  recognised  in  the  statement  of  financial  performance.  For  assets  at  fair  value  through  net 
assets/equity  the  loss  allowance  is  recognised  in  net  assets/equity  and  does  not  reduce  the  carrying 
amount  of  the  financial  asset  in  the  statement  of  financial  position.  If,  in  a  subsequent  period,  the 
amount of the impairment loss decreases, the previously recognised impairment loss is reversed through 
the statement of financial performance. 

(a) 

Loans to sovereigns 

The EU bases its assessment of loans’ impairment, in the context of the nature of the EU’s financing and 
its unique institutional status. 

For  the  impairment  of  loans  to  non-Member  States,  the  EU  calculates  the  expected  credit  losses  using 
external credit quality data, however taking into account its preferred creditor status, which reduces the 
credit  risk.  For  the  calculation  of  the  present  value,  the  discount  rate  is  the  loan’s  original  effective 
interest rate. If a loan has a variable interest rate, the discount rate is the current effective interest rate 
determined under the contract. 

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Annual accounts of the European Union 2021 

For loans to Member States, the EU has never incurred any impairment losses, nor faced any defaults on 
payments.  For  these  loans,  in  addition  to  the  preferred  creditor  status,  the  EU  takes  into  account  the 
relationships with its Member States. These two elements, in principle, guarantee the full recovery of the 
loans to Member States, on maturity. Therefore, the EU considers the expected credit losses from loans 
to  Member  States  to  be  negligible,  and  a  statistical  approach  to  calculate  expected  credit  losses  as 
inappropriate for these loans. Thus no expected credit losses are recognised in the statement of financial 
performance for the loans to Member States. 

(b) 

Receivables 

The  EU  measures  the  impairment  loss  at  the  amount  of  lifetime  ECL,  using  practical  expedients  (e.g. 
provision matrix). 

(c) 

Cash and cash equivalents 

The EU holds cash and cash equivalents in current bank accounts and term deposits of up to 3 months. 
The  cash  is  held  in  banks  with  very  high  credit  ratings  (see  note  6.5),  thus  having  very  low  default 
probabilities. Given the short duration and low default probabilities, the expected credit losses from cash 
and  cash  equivalents  are  negligible.  As  a  result,  no  impairment  allowance  is  recognised  for  cash 
equivalents. 

Derecognition 

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. Sales 
of financial assets at fair value through net assets/equity and through surplus or deficit are recognised on 
their trade-date. 

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 in accordance with the principle of sound financial management over a 
period defined in the particular contract, decision, agreement or basic 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 

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Annual accounts of the European Union 2021 

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  (as  established  under  Article  234  of  the  Financial  Regulation)  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 
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  are  financial  assets  measured  at  amortised  cost,  except  for 
certain  amounts  of  financial  guarantee  contract  receivable  leg  which  are  classified  as  financial  asset  at 
fair value through surplus or deficit (see note 1.5.5). 

Recoverables from non-exchange transactions are carried at fair value as at the date of acquisition 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 assets at amortised cost 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 health 
insurance  coverage  provided  under  the  Joint  Sickness  Insurance  Scheme  (JSIS)  (see  note  2.9).  These 

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Annual accounts of the European Union 2021 

benefits  are  provided  under  a  single  plan  –  although  split  in  two  schemes  –  and  they  must  be  treated 
similarly so as to give a fair presentation of the situation and reflect the economic reality: 

i. 

ii. 

Pension Scheme of European Officials (PSEO): The benefits granted under this notionally funded16 
scheme  relate  to  seniority,  invalidity  and  survival,  as  well  as,  family  allowances,  death  before 
retirement to those employees that work or worked in the EU Institutions, Agencies and other EU 
bodies  or  are  survivors  of  deceased  officials  or  pensioners.  Staff  contribute  one  third  of  the 
expected cost of these benefits from their salaries. 

Joint  Sickness  Insurance  Scheme  (JSIS):  Under  this  scheme,  the  EU  provides  health  insurance 
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  and  former  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, European Court 
of  Justice,  Court  of  Auditors,  Council,  European  Parliament,  European  Ombudsman,  and  the  European 
Data Protection Supervisor. 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 in the net defined benefit liabilities 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 

16 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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cost  is  recognised  immediately  in  the  statement  of  financial  performance,  unless  the  changes  are 
conditional on the employees remaining in service for a specified period of time. 

1.5.11.  Provisions 

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

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

1.5.12.  Financial liabilities 

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

Borrowings are composed of borrowings from credit institutions and debts evidenced by certificates (EU 
bonds,  EU  deposits  and  EU  bills).  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. The transaction costs incurred by the EU and then 
recharged  to  the  beneficiary  of  the  loan  are  immaterial  and  are  directly  recognised  in  the  statement  of 
financial performance. 

Financial  liabilities  at  fair  value  through  surplus  or  deficit  include  derivatives  where  the  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. 

The EU recognises a financial guarantee contract liability when it enters into a contract that requires the 
EU to make specified payments to reimburse the guarantee holder for a loss it incurs because a specified 
debtor  fails  to  make  payment  when  due  in  accordance  with  the  original  or  modified  terms  of  a  debt 
instrument.  Where  the  guarantee  contract  requires  the  EU  to  make  payments  in  response  to  financial 
instruments price changes or changes to other underlyings, the guarantee contract is a derivative i.e. a 
financial liability at fair value through surplus or deficit. All other guarantee contracts are accounted for 
as financial provisions. 

Financial  guarantee  contract  liabilities  are  initially  recognised  at  fair  value.  This  equals  the  net  present 
value  of  the  premium  receivable,  if  it  is  at  market  terms.  When  no  guarantee  premium  is  charged  or 
where the consideration is not fair value, the  fair  value is determined based on the quoted prices in an 
active  market  for  financial  guarantee  contracts  directly  equivalent  to  that  entered  into  the  financial 
guarantee liability, if available, or using a valuation technique. If no reliable measure of fair value can be 
determined either by direct observation of an active market or through another valuation technique, the 
financial  guarantee  contract  liability  is  initially  measured  at  the  amount  of  the  lifetime  expected  credit 
losses. 

The  subsequent  measurement  depends  on  the  evolution  of  the  credit  risk  exposure  from  the  financial 
guarantee.  If  there  is  no  significant  increase  in  credit  risk  (‘stage  1’),  financial  guarantee  liabilities  are 
measured at the higher of the 12 months expected credit losses and the amount initially recognised less, 
when  appropriate,  cumulative  amortisation.  If  there  is  a  significant  increase  in  credit  risk  (‘stage  2’), 
financial  guarantee  liabilities  are  measured  at  the  higher  of  the  lifetime  expected  credit  losses  and  the 
amount initially recognised less, when appropriate, cumulative amortisation (see note 6.5). 

Financial liabilities are classified as non-current liabilities, except for maturities less than 12 months after 
the balance sheet date. Financial guarantee contracts are classified as current liabilities except if the EU 
has  an  unconditional  right  to  defer  the  settlement  of  the  liability  for  at  least  twelve  months  after  the 
reporting date. 

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Annual accounts of the European Union 2021 

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 distribution of the 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. 

1.5.14.  Accrued and deferred revenue and charges 

Transactions and events are recognised in the financial statements in the period to which they relate. At 
year-end,  if  an  invoice  is  not  yet  issued  but  the  service  has  been  rendered,  the  supplies  have  been 
delivered by the EU or a contractual agreement exists (e.g. by reference to a treaty), an accrued revenue 
will  be  recognised  in  the  financial  statements.  In  addition,  at  year-end,  if  an  invoice  is  issued  but  the 
services have not yet been rendered or the goods supplied have not yet been delivered, the revenue will 
be deferred and recognised in the subsequent accounting period. 

Expenses are also accounted for in the period to which they relate. At the end of the accounting period, 
accrued expenses are recognised based on an estimated amount of the transfer obligation of the period. 
The  calculation  of  accrued  expenses  is  done  in  accordance  with  detailed  operational  and  practical 
guidelines  issued  by  the  Commission  which  aim  at  ensuring  that  the  financial  statements  provide  a 
faithful representation of the economic and other phenomena they purport to represent. By analogy, if a 
payment has been made in advance for services or goods that have not yet been received, the expense 
will be deferred and recognised in the subsequent accounting period. 

1.6.  STATEMENT OF FINANCIAL PERFORMANCE 

1.6.1.  Revenue 

REVENUE FROM NON-EXCHANGE TRANSACTIONS 

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

GNI based resources, VAT and Plastics own resources 

Revenue is recognised for the period for which the Commission sends out a call for funds to the Member 
States  claiming  their  contribution.  The  revenue  is  measured  at  its  ‘called  amount’.  As  VAT,  GNI  and 
Plastics own resources are based on estimates of the data for the budgetary year concerned, they may be 
revised since 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. 

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Annual accounts of the European Union 2021 

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  adopted  and  it  is 
officially notified to the addressee. After the decision to impose a fine, the fined entities 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 challenge it in accordance with EU law. 

Even  if  appealed,  the  fine  must  be  paid  within  the  time  limit  of  three  months  laid  down,  as  the  appeal 
does not have suspensory effect (Article 278 TFEU). The cash received is used to clear the recoverable. 
However, subject to the agreement of the Commission’s Accounting Officer, the undertaking may present 
a bank guarantee for the amount instead. In that case the fine remains as a recoverable. If neither cash 
nor a guarantee is received and there are doubts about the undertaking’s solvency, a value reduction on 
the entitlement is recognised. 

If the undertaking appeals against the decision, and has already provisionally paid the fine, the amount is 
disclosed as a contingent liability, or, if it appears probable that the General Court may not rule in favour 
of  the  EU,  a  provision  is  recognised  to  cover  this  risk.  If  a  guarantee  is  given  instead,  the  outstanding 
recoverable is written down. 

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

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

REVENUE FROM EXCHANGE TRANSACTIONS 

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

Interest revenue and expense 

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

Once a financial asset or a group of similar financial assets is considered credit impaired (‘stage 3’), the 
interest revenue is recognised using the rate of interest to discount the future cashflows for the purpose 
of measuring the impairment loss. 

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Revenue from dividends 

Annual accounts of the European Union 2021 

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

Revenue and expense from financial assets through surplus or deficit 

This refers to the fair value gains (revenue) and fair value losses (expense) from these financial assets, 
including  those  stemming  from  foreign  exchange  translation.  For  interest-bearing  financial  assets,  this 
also includes interest. See also note 3.9. 

Revenue from financial guarantee contracts 

The revenue from financial guarantee contracts (guarantee premium) is recognised over the time the EU 
stands  ready  to  compensate  the  holder  of  the  financial  guarantee  contract  for  the  credit  loss  it  may 
incure. The amortisation schedule applied takes into account the passage of time and the volume of the 
guaranteed  exposure.  Revenue  from  financial  guarantee  contracts  include  also  amortisation  of  financial 
guarantee contracts liability in cases when the guarantee was provided at no or nominal consideration. 

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: (i) entitlements, (ii) transfers under agreement and 
discretionary grants, as well as (iii) contributions and donations. 

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

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

Expenses  from  exchange  transactions  arising  from  the  purchase  of  goods  and  services  are  recognised 
when  the  supplies  are  delivered  and  accepted  by  the  EU.  They  are  valued  at  their  original  invoice 
amount.  Furthermore,  at  the  balance  sheet  date,  expenses  related  to  the  service  delivered  during  the 
period  for  which  an  invoice  has  not  yet  been  received  or  accepted  are  estimated  and  recognised  in  the 
statement of financial performance. 

1.7.  CONTINGENT ASSETS AND LIABILITIES 

1.7.1.  Contingent assets 

A  contingent  asset  is  a  possible  asset  that  arises  from  past  events  and  of  which  the  existence  will  be 
confirmed  only  by  the  occurrence  or  non-occurrence  of  one  or  more  uncertain  future  events  not  wholly 
within  the  control  of  the  EU.  A  contingent  asset  is  disclosed  when  an  inflow  of  economic  benefits  or 
service potential is probable. 

1.7.2.  Contingent liabilities 

A contingent liability is a possible obligation that arises from past events and of which the existence will 
be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly 
within  the  control  of  the  EU,  or  a  present obligation  that  arises  from past  events  but  is  not  recognised, 
either  because  it  is  not  probable  that  an  outflow  of  resources  embodying  economic  benefits  or  service 
potential will be required to settle the obligation, or in the rare circumstances  where the amount of the 
obligation  cannot  be  measured  with  sufficient  reliability.  A  contingent  liability  is  disclosed  unless  the 
possibility of an outflow of resources embodying economic benefits or service potential is remote. 

60 

 
 
 
Annual accounts of the European Union 2021 

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,  investing  and 
financing activities. 

Operating activities are the activities of the EU that are not investing or financing activities. These are the 
majority of the activities performed.  

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  as  they  are  part  of  the  general  objectives  and  thus  daily 
operations of the EU. The objective is to show the real investments made by the EU. 

Financing  activities  are  activities  that  result in  changes  in  the  size  and  composition  of  borrowings  other 
than those granted to beneficiaries on a back-to-back basis or for the acquisition of properaty, plant and 
equipment (which are included under operating activities). 

61 

 
 
Annual accounts of the European Union 2021 

2.  NOTES TO THE BALANCE SHEET 

ASSETS 

2.1.  INTANGIBLE ASSETS 

Gross carrying amount at 31.12.2020 
Additions 
Disposals 
Transfer between asset categories 
Other changes 
Gross carrying amount at 31.12.2021 
Accumulated amortisation at 31.12.2020 
Amortisation charge for the year 
Amortisation written back 
Disposals 
Transfer between asset categories 
Other changes 
Accumulated amortisation at 31.12.2021 

Net carrying amount at 31.12.2021 
Net carrying amount at 31.12.2020 

EUR million 

1 409 
 276 
 (32) 
0 
 (18) 
1 636 
 (789) 
 (119) 
 3 
 36 
0 
 3 
 (867) 

 769 
 620 

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,  two  satellites  have  been  launched  in  December  2021.  They  are  expected  to  be  declared 
operational  in  the  first  semester  of  2022.  At  the  same  time  a  new  generation  1.7  of  the  ground 
infrastructure  was  successfully  deployed.  The  constellation  currently  includes  26  satellites.  When 
completed, the Galileo constellation will comprise 30 satellites (including 6 spare satellites). The Galileo 
operational fixed assets, covering both satellites and ground installations, amounted to EUR 3 413 million 
at 31 December 2021, net of accumulated depreciation (2020: EUR 2 145 million). The remaining assets 
under construction total EUR 1 344 million (2020: EUR 1 872 million).  

Regarding  Copernicus,  satellite  6A  has  been  declared  operational  in  June  2021.  The  total  value  of 
Copernicus  operational  fixed  assets  is  EUR 937 million  (2020:  EUR 877  million),  net  of  accumulated 
depreciation.  A  further  EUR 2  115 million  related  to  Copernicus  satellites  is  recognised  as  assets  under 
construction (2020: EUR 1 894 million).  

Fixed assets related to  the EGNOS ground infrastructure of  EUR 130  million (2020:  EUR 24  million)  are 
also included under the heading ‘Space assets’. In addition, EGNOS assets under construction amount to 
EUR 189 million (2020: EUR 273 million). 

62 

 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Property, plant and equipment 

Gross carrying amount at 31.12.2020 

Additions 

Disposals 

Transfer between asset categories 

Other changes 

Land and 
Buildings 
5 924 

 100 

 (12) 

 535 

– 

Space 
assets 
5 670 

 269 

– 

1 791 

– 

Gross carrying amount at 31.12.2021 

6 547 

7 730 

Accumulated depreciation at 31.12.2020 

(3 676) 

(2 625) 

Depreciation charge for the year 

 (187) 

 (625) 

Depreciation written back 

Disposals 

Transfer between asset categories 

Other changes 

 5 

 12 

 (0) 

 0 

– 

– 

– 

– 

Plant and 
Equipment 
 546 

Furniture 
and Vehicles 
 272 

Computer 
Hardware 
 727 

Other 

 332 

 20 

 (7) 

 2 

 0 

Finance 
leases 
2 650 

 Assets under 
construction 
4 748 

 9 

 (7) 

 (0) 

– 

1 472 

– 

(2 329) 

 (1) 

EUR million 

Total 

20 868 

2 049 

 (122) 

 0 

 (1) 

 114 

 (60) 

 (0) 

 (0) 

 781 

 347 

2 651 

3 890 

22 793 

 (557) 

 (259) 

(1 402) 

 (84) 

 (23) 

 (92) 

 6 

 55 

 (0) 

 (0) 

 0 

 7 

 0 

 (1) 

– 

 7 

 0 

– 

(9 186) 

(1 065) 

 10 

 116 

 (0) 

 (1) 

 45 

 (24) 

 1 

– 

 568 

 (465) 

 (38) 

 0 

 24 

 (0) 

 0 

 19 

 (12) 

 1 

– 

 281 

 (203) 

 (16) 

 0 

 11 

– 

– 

Accumulated depreciation at 31.12.2021 

(3 846) 

(3 250) 

 (479) 

 (208) 

 (581) 

 (276) 

(1 487) 

(10 126) 

NET CARRYING AMOUNT AT 31.12.2021 

NET CARRYING AMOUNT AT 31.12.2020 

2 701 

2 249 

4 480 

3 045 

 89 

 81 

 73 

 69 

 199 

 170 

 72 

 73 

1 164 

1 248 

3 890 

4 748 

12 669 

11 682 

63 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

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.  

In 2021, the  EIF shareholders have approved a capital increase from EUR 4.5 billion to EUR 7.4 billion. 
The subscribed capital at 31 December 2021 is EUR 7.3 billion (while another EUR 70 million is authorised 
but  not  yet  subscribed).  This  increase  will enable  the  EIF  to  play  a  key  role  in  rolling  out InvestEU,  the 
EU’s  investment  programme  for  2021-2027  (see  note  4.1.1).  It  will  also  contribute  to  the  response  to 
the  COVID-19  crisis  where  the  EIF  is  also  putting  in  place  significant  packages  to  support  small 
businesses across Europe. The EU participated in the capital increase, contributing EUR 372 million. At 31 
December  2021,  it  held  30%  of  ownership  interests  in  the  EIF  (2020:  29.7%)  and  30%  of  the  voting 
rights (2020: 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 31.12.2020 
Contributions 
Dividends received 
Share of net result 
Share in the net assets 
Participation at 31.12.2021 

EUR million 
European Investment Fund 
 588 
 372 
– 
 169 
 63 
1 192 

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

Assets 
Liabilities 
Revenue 
Expenses 
Surplus/(deficit) 

31.12.2021 
Total EIF 
5 187 
(1 213) 
 781 
 (217) 
 564 

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

The  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 

31.12.2021 
3 974 
30.0% 

1 192 

EUR million 
31.12.2020 
1 979 
29.7% 

 588 

The  EU,  represented  by  the  Commission,  has  paid  in  20%  of  its  subscribed  shares  in  the  EIF  capital  at 
31 December 2021, the uncalled amount is as follows: 

Total share capital 
Paid-in 
Uncalled 

Total EIF capital 
7 300 
(1 460) 
5 840 

EUR million 
EU subscription 
2 190 
 (438) 
1 752 

64 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

2.4.  FINANCIAL ASSETS 

Note 

31.12.2021 

EUR million 
31.12.2020 

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

Current 
Financial assets at amortised cost 
Financial assets at fair value through surplus or deficit* 

2.4.1 
2.4.2 

2.4.1 
2.4.2 

Total 

160 214 
21 660 
181 874 

3 353 
3 391 
6 744 
188 618 

82 887 
16 327 
99 214 

10 422 
3 459 
13 881 
113 095 

* The 2020 figures include EUR 16 134 million classified as non-current AFS (Available for sale) financial assets and EUR 3 453 million 

classified as current AFS financial assets in the 2020 EU Consolidated Annual Accounts. 

2.4.1. 

Financial assets at amortized cost 

Loans for RRF (NGEU) and financial assistance  
Other loans 
Total 
Non-current 
Current 

Note 
2.4.1.1 
2.4.1.2 

31.12.2021 
163 392 
 176 
163 568 
160 214 
3 353 

EUR million 
31.12.2020 
93 193 
 116 
93 309 
82 887 
10 422 

2.4.1.1.  Loans for RRF (NGEU) and financial assistance  

Total at 31.12.2020 
Revision of EAR 11 
New loans (nominal) 
Repayments 
Changes in carrying 
amount 
Changes in impairment 
Total at 31.12.2021 
Non-current 
Current 

RRF  
(NGEU) 
– 
– 
17 970 
– 

SURE 

EFSM 

39 503 
 420 
50 137 
– 

47 396 
 (114) 
9 750 
(9 750) 

 8 

 507 

 (144) 

– 
17 978 
17 970 
 8 

– 
90 567 
90 502 
 65 

– 
47 138 
43 969 
3 169 

BOP 

 201 
 (1) 
– 
– 

0 

– 
 201 
 200 
 1 

EUR million 

MFA  Euratom 

Total 

5 813 
 (27) 
1 665 
 (14) 

 (24) 

 (243) 
7 170 
7 132 
 38 

 279 
 (1) 
 100 
 (29) 

93 193 
 276 
79 622 
(9 793) 

– 

 347 

 (11) 
 (254) 
 338  163 392 
160 087 
 314 
3 305 
 24 

The  nominal  value  of  loans  at  31  December  2021  is  EUR  162  394  million,  out  of  which  EUR  144  424 
million refers to loans for financial assistance (2020: EUR 92 565 million) and EUR 17 970 million to RRF 
(2020:  none).  The  significant  increase  from  the  previous  year  is  due  to  further  loans  given  out  under 
SURE and the launch of the RRF (NGEU) instrument in 2021. 

The line ‘revision of EAR 11’ shows the impact of the revised EAR 11 on the loans amounts at 1 January 
2021. For SURE, EFSM and BOP the impact refers to the application of the effective interest rate method. 
For  MFA  and  Euratom  the  impact  refers  to  the  application  of  the  effective  interest  rate  and  the 
impairment allowance as at 1 January 2021. 

 

Effective  interest  rate  impact:  The  above  mentioned  programmes,  except  for  RRF  (NGEU), 
operate  on  a  ‘back-to-back’  basis.  This  means  that  the  premiums,  discounts,  interests  and 
transactions costs the EU incurs for borrowing are recharged to the loan beneficiary. As a result 
the effective interest rate of a loan is the effective interest rate of the respective borrowing that 
financed the loan. The premiums or discounts on borrowing transactions and their recharging to 
the  loan  beneficiaries  were  previously  immediately  expensed  in  the  statement  of  financial 

65 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

performance.  By  applying  the  effective  interest  rate  method,  the  unamortised  premiums  and 
discounts  as  at  1  January  2021  have  been  added  to  the  outstanding  borrowings  and  loans.  The 
net impact on the accumulated results is zero. The unamortised premiums and discounts will now 
be amortised until maturity.  

 

Impairment  allowance  impact:  This  has  been  calculated  using  an  expected  credit  loss  model, 
applying  the  policies  for  the  impairment  of  loans  (see  note  6.5).  The  Commission  has  thus 
recognised an impairment allowance for expected credit losses for MFA and Euratom loans, as at 
1 January 2021.  

The  line  ‘changes  in  impairment’  corresponds  to the  remeasurement  of the  expected  credit losses  as  at 
31 December 2021. 

The line ‘changes in carrying amount’ corresponds to the change in accrued interests and the change in 
premiums/discounts (new premiums/discounts and amortisation). 

Recovery and Resilience Facility (RRF) 

In 2021, the EU set up the RRF as a temporary instrument to help the Member States’ economies recover 
from  the  coronavirus  pandemic  and  become  resilient  to  green  and  digital  transitions.  Under  the  EU 
Recovery  Instrument  (NGEU),  the  Commission  borrows  funds  which  the  RRF  uses  to  finance  Member 
States’  reforms  and  investments.  These  have  to  be  in  line  with  EU  priorities  and  have  to  address  the 
challenges  identified  in  country-specific  recommendations  under  the  European  Semester  framework  of 
economic and social policy coordination. The financing can be either a loan (repayable support) or a grant 
(non-repayable  support,  see  note  2.5).  The  Member  States  can  receive  financing  up  to  a  previously 
agreed  allocation  for  loans  and  grants.  To  benefit  from  the  support,  the  Member  States  have  to  submit 
their national recovery and resilience plans to the European Commission. Each plan sets out the reforms 
and  investments  to  be  implemented  by  the  end  of  2026  defining  clear  milestones  and  targets  to  be 
analysed  by  the  European  Commission  and  approved  by  the  European  Council.  The  RRF  loans  can  be 
disbursed  until  31  December  2026  only  after  the  achievement  of  the  agreed  milestones  and  targets. 
However,  up  to  31  December  2021,  the  Commission  could  advance  up  to  13%  of  the  approved  loan 
amounts in order to initiate economic recovery.  

At  31  December  2021  loan  agreements  of  EUR  153.2  billion  have  been  signed.  Out  of  these,  the 
Commission  has  disbursed  EUR  18  billion.  There  is  no  back-to-back  relationship  between  the  RRF  loans 
and the NGEU borrowings (see note 2.11). 

Support to mitigate Unemployment Risks in an Emergency (SURE) 

SURE  is  a  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 for the repayment of the 
related borrowings. 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  2021  the  Council  had  approved  and  the  Commission  had  signed  loan  agreements  for 
EUR 94.3 billion of financial assistance. Out of these, the Commission had disbursed EUR 89.6 billion to 
Member  States  (nominal  amounts).  The  remaining  amounts  under  signed  loan  agreements  are  being 
disbursed in 2022.  

European Financial Stabilisation Mechanism (EFSM) 

The  EFSM  enabled  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.  It  is  not  foreseen  that  the  EFSM  will  engage  in  new 
financing  programmes  or  enter  into  new  loan  facility  agreements.  There  are  no  undrawn  amounts  from 
signed loan agreements.  

66 

 
 
 
Balance of Payments (BOP) 

Annual accounts of the European Union 2021 

This  is  a  policy-based  financial  instrument  that  provides  medium-term  financial  assistance  to  Member 
States  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. There are no undrawn amounts from signed loan agreements. 

Macro-Financial Assistance (MFA) 

The  MFA  is  a  form  of  financial  assistance  from  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  programme.  The  borrowings  for  these  loans  are  guaranteed  by  the  Guarantee  Fund  for 
external actions and then by the EU budget.  

During  2021,  additional  loans  of  EUR 1.7 billion  were  disbursed,  including  EUR  0.6  billion  to  Ukraine. 
There are EUR 0.6 billion conditional undrawn amounts from signed loan agreements. 

At 31 December 2021, the impairment allowance for MFA loans is EUR 293 million, out of which EUR 197 
million refer to the loans to Ukraine (totalling EUR 4.4 billion (nominal value) at year-end). In accordance 
with the EU accounting rules (and IPSAS), this impairment allowance does not take into account the non-
adjusting  post  balance  sheet  events  related  to  the  war  in  Ukraine  in  2022  (see  note  8),  only  the 
significant increase in risk that was noted at the end of 2021.  

European Atomic Energy Community loans (Euratom) 

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. Out of the total Euratom loans outstanding at 31 December 2021, EUR 300 million 
(nominal value) relates to loans with Ukraine, for which an impairment allowance of EUR 13 million has 
been  recognised.  At  31  December  2021,  the  Commission  had  received  guarantees  from  third  parties  of 
EUR 350  million  (2020:  EUR 279  million)  to  cover  Euratom  loans.  There  are  no  undrawn  amounts  from 
signed loan agreements.  

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

RRF (NGEU) 
SURE 
EFSM 
BOP 
MFA 
Euratom 

31.12.2021 
0.11% - 0.12% 
(0.48)% - 0.77% 
(0.03)% - 3.79% 
2.95% 
(0.14)% - 3.70% 
(0.08)% - 1.66% 

31.12.2020 
– 
0.00% - 0.30% 
0.50% - 3.75% 
2.88% 
0.00% - 3.69% 
0.00% - 5.76% 

The 2020 figures refer to nominal interest rates, while 2021 figures are effective interest rates in line with the revised EAR 11. 

2.4.1.2.  Other loans 

These include 3 types of loans:  

a)  Loans of EUR 74 million as at 31 December 2021 (2020: EUR 75 million) granted from EU budget 
programmes  (e.g.  the  MEDA  programme  Euro-Mediterranean  Partnership  and  the  EU 
Employment and Social Innovation programme)  

b)  Defaulted  loans  originally  granted  by  implementing  partners  where  the  Commission  has  paid  a 
guarantee call and now holds the recovery rights (subrogated loans). At 31 December 2021, the 
Commission  holds  the  recovery  rights  for  EUR  855  million  of  such  loans  (including  accrued 
interests).  However,  after  taking  into  account  the  expected  credit  losses,  the  carrying  amount 
recognised  on  the  balance  sheet  is  EUR  48  million.  These  loans  were  granted  by  the  EIB  and 
guaranteed by the EFSI and ELM programmes.  

c)  Term deposits of EUR 54 million, with maturity of over 3 months that do not meet the definition 

of cash equivalents.  

67 

 
 
2.4.2. 

Financial assets at fair value through surplus or deficit (FVSD) 

Annual accounts of the European Union 2021 

Financial assets at FVSD non-derivatives* 
Financial assets at FVSD derivatives  
Total 
Non-current 
Current 

Note 
2.4.2.1 
2.4.2.2 

31.12.2021 
24 223 
 828 
25 051 
21 660 
3 391 

EUR million 
31.12.2020 
19 587 
 199 
19 786 
16 327 
3 459 

*The 2020 figure relates to amounts previously classified as AFS financial assets in the 2020 EU Consolidated Annual Accounts. 

2.4.2.1.  Financial assets at FVSD non-derivatives  

Financial assets at FVSD non-derivatives by type 

Debt securities 
Money market funds and investments in pooled portfolios  
Other equity investments 
Total 
Non-current 
Current 

31.12.2021 
19 326 
2 513 
2 384 

24 223 
20 834 
3 390 

EUR million 
31.12.2020 
14 862 
3 038 
1 686 
19 587 
16 134 
3 453 

The 2020 figures relate to amounts previously classified as AFS assets in the 2020 EU Consolidated Annual Accounts. 

Debt  securities  are  mainly  sovereign  and  corporate  bonds.  These  investments  are  held  in  the  funds 
(portfolios) managed by the Commssion, or by the EIB on behalf of the EU and mainly refer to the CPF, 
H2020,  BUFI  and  the  Innovation  Fund  (see  below).  The  asset  portfolios’  performance  is  evaluated  on  a 
fair value (market value) basis.  

Money  market  funds  are  mutual  funds  that  invest  in  short  term  debt  securities  (e.g.  the  EIB  unitary 
fund). The investments in pooled portfolios are EU funds of CEF and H2020 programmes pooled together 
with  Member  States’  funds  from  the  NER  300  programme.  They  are  used  to  provide  guarantees  to  the 
EIB’s financing and investment operations.  

The ‘other equity investments’ mainly refer to investing EU budget money – via implementing partners - 
in  venture  capital  or  other  types  of  investment  funds  for  pursuing  EU  policy  objectives.  For  example, 
enhancing  access  to  finance  for  start  up  SMEs,  research  and  innovation  as  well  as  infrastructure  both 
inside and outside the EU.  

68 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial assets at FVSD non-derivatives by programme 

Annual accounts of the European Union 2021 

Innovation Fund 
BUFI investments 
ECSC in Liquidation 
European Bank for Reconstruction and Development 
EEAS local staff pension plan 

Budgetary Guarantee Funds: 
Common Provisioning Fund 
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 
Other 

Total 
Non-current 
Current 

31.12.2021 
4 195 
1 257 
1 382 
 188 
 69 
7 091 

EUR million 
31.12.2020 
– 
1 598 
1 445 
 188 
 73 
3 304 

11 272 
– 
– 
– 
11 272 

3 342 
 762 
 684 
 213 
 146 
 107 
 606 
5 861 
24 223 
20 834 
3 390 

– 
7 526 
2 794 
 692 
11 012 

3 097 
 764 
 533 
 163 
 143 
 104 
 467 
5 271 
19 587 
16 134 
3 453 

The 2020 figures relate to amounts previously classified as AFS assets in the 2020 EU Consolidated Annual Accounts. 

Innovation Fund (IF) 

The  Innovation  Fund  was  set  up  by  Directive  (EU)  2018/410  of  the  European  Parliament  and  of  the 
Council  amending  Directive  2003/87/EC  establishing  a  system  for  greenhouse  gas  emission  allowances 
trading  within  the  Union.  It  supports  innovation  in  low-carbon  technologies  and  processes  in  certain 
economic  sectors.  The  Innovation  Fund  is  to  be  endowed  with  the  revenue  from  the  progressive 
monetisation of 450 million allowances and also with any unspent funds from the 300 million allowances 
available for NER300 programme (see note 3.8). The Innovation Fund started its operations in 2020, but 
the  amounts  were  held  in  cash.  As  of  2021,  the  EIB  manages  the  monies  of  the  Innovation  Fund  by 
investing them in bonds. 

BUFI investments 

The Commission has established the Budget Fines fund (‘BUFI’) for managing the money it provisionally 
receives  for  competition  fines  under  appeal.  Until  the  final  court  decision,  the  Commission  invests  the 
money in debt instruments.  

ECSC in Liquidation 

The  ECSC  Treaty  expired  on  23  July  2002  and  all  the  ECSC  assets  were  transferred  to  the  European 
Union and were earmarked for research in the sectors associated with the coal and steel industries. The 
Commission manages the portfolio, and invests in 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 2021 were 90 044 (2020: 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 

69 

 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

that  the  shares  are  not  transferable  and  their  redemption  is  capped  at  the  maximum  of  the  original 
purchase  cost. The  EU  measures  its  investment in  the  EBRD  at  fair  value.  The original purchase  cost is 
considered the best estimate of the fair value, in particular due to the contractual restrictions referred to 
above.  Although  the  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. 

Common Provisioning Fund (CPF) 

The EU  guarantees equity investments and loans that  implementing partners provide to sovereigns and 
companies. In order to pay the  claims from defaults or other losses, the EU Budget, in accordance with 
the legal acts, is gradually setting money aside to build a capital buffer i.e. the CPF. The CPF also covers 
borrowings the Commission issues to finance MFA and Euratom loans to non Member States. 

Until  2020,  there  was  a  separate  fund  for  each  budgetary  guarantee  (EFSI  Guarantee  Fund,  EFSD 
Guarantee Fund, Guarantee Fund for External actions-covering also the financial assistance loans to third 
countries under MFA and Euratom). 

As of 1 January 2021, in compliance with the Financial Regulation, the Commission has set up the CPF to 
manage the capital buffer (‘provisioning’) for all budgetary guarantees and financial assistance  loans to 
third  countries,  in  one  common  portfolio.  In  addition  to  the  EU  budget  provisioning,  the  CPF  receives 
recoveries  from  defaulted  operations,  the  returns  on  its  investments  and  the  receipts  from  the  EU 
budgetary  guarantees  remuneration.  The  CPF  may  also  receive  voluntary  contributions  from  Member 
States and other contributors who are –in this way- increasing the available EU budget guarantees. 

The CPF allocates the incoming contributions into compartments where each compartment refers to one 
contributing  programme.  At  31  December  2021,  the  CPF  consists  of 4  compartments.  Out  of  these,  3 
compartments refer to legacy instruments established under previous MFFs (EFSI, EFSD and ELM). These 
3 contributing programmes have transferred their existing provisioning at the date they joined the CPF. 
In addition, there is a compartment for InvestEU,  a new instrument established under the current MFF. 
The legal acts of these instruments set out the necessary provisioning for the guarantees provided. The 
EU budget pools these individual provisions in the CPF and optimises the asset management. 

At  31.  December  2021  the  assets  of  the  CPF  were  EUR  12.3  billion  out  of  which  EUR  11.3  billion  were 
invested in financial assets at FVSD non-derivatives (debt securities). 

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,  to  date,  the  Commission 
has used resources available under the H2020.  

Connecting Europe Facility 

Pursuant  to  Regulation  (EU)  No  1316/2013,  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. 
It offers risk sharing for debt financing in the form of senior and subordinated debt or guarantee as well 
as support for project bonds guaranteed by the EU.  

70 

 
EU SME Equity Facilities 

Annual accounts of the European Union 2021 

These  are  equity  instruments  financed  by  the  COSME,  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. 

Fair value hierarchy of non-derivative financial assets at FVSD (in 2020 classified as AFS) 

Type of financial asset 
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 

31.12.2021 
19 336 
2 698 

2 190 

24 223 

EUR million 
31.12.2020 
15 383 
2 706 

1 498 

19 587 

During the period, there were no transfers between level 1 and level 2 of the fair value hierarchy. 

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

Fair value movements 
Opening balance at 1.1.2021 
Revision EAR 11 
Investments during the period 
Capital repayments 
Revenues settled  
Gains or losses for the period in surplus or deficit 
Transfers into level 3  
Transfers out of level 3  
Other 
Closing balance at 31.12.2021 

EUR million 

1 498 
 2 
 505 
 (111) 
 (30) 
 326 
– 
– 
– 
2 190 

The  net  gains  for  level  3  non-derivative  assets  held  at  end  of  2021  were  EUR  295  million.  They  are 
included as financial revenue under ‘Gains on financial assets or liabilities at FVSD non-derivatives’ (see 
note  3.9)  and  as  finance  costs  under  ‘Losses  from  on  financial  assets  or  liabilities  at  FVSD  non- 
derivatives’ (see note 3.15). 

2.4.2.2.  Financial assets and liabilities at FVSD derivatives 

Financial assets and liabilities at FVSD derivatives by type 

Type of derivative 

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

Notional 
amount  

31.12.2021 
Fair Value 
Asset 

Fair Value 
Liability 

Notional 
amount  

31.12.2020 
Fair Value 
Asset 

Fair Value 
Liability 

EUR million 

 646 
4 148 
 28 
4 822 

 2 
 826 
– 
 828 
 826 
 2 

 417 
3 412 
 14 
3 843 

– 
 (1) 
 (4) 
 (5) 
 (5) 
– 

 6 
 193 
– 
 199 
 193 
 6 

– 
 (1) 
 (4) 
 (4) 
 (4) 
 (0) 

Foreign currency forward contract  

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 

71 

 
 
 
 
 
 
 
 
 
   
 
 
 
 
Annual accounts of the European Union 2021 

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. 

Guarantees on equity portfolios 

The heading ‘Guarantee on equity portfolio’ comprises guarantees given by the EU to financial institutions 
on  portfolios  of  equity  investments.  These  guarantees  are  classified  as  derivative  financial  instruments 
and  accounted  for  as  a  financial  asset  or  financial  liability  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.  

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  3  068  million  (2020:  EUR  2  223 
million). The fair value of the EU guarantee on the EFSI equity portfolios totalled EUR 763 million (2019: 
EUR 164 million). 

Guarantee on foreign currency risk 

The EU guarantees foreign currency (‘FX’) risk under the EFSD Guarantee, where it guarantees swap and 
forward contracts that aim at hedging against foreign currency risks for investing operations in emerging 
markets.  The  EU  also  covers  the  devaluation  of  the  foreign  exchange  currency  (UHA)  related  to  loans 
given by financial institutions to SMEs to Ukraine under the Eastern Partnership SME Finance Facility. 

Fair value hierarchy of derivative financial assets and liabilities 

Type of derivative 

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 

31.12.2021 

31.12.2020 

Fair Value  
Asset  
– 

Fair Value 
Liability  
– 

Fair Value 
Asset  
– 

Fair Value 
Liability  
– 

EUR million 

2 

826 

 828 

(2) 

(2) 

 (5) 

6 

193 

 199 

(4) 

(1) 

 (4) 

During the period, there were no transfers between level 1 and level 2. Derivatives in Fair Value Level 3 
include mainly guarantees on equity portfolios. 

Reconciliation of derivative financial assets and liabilities measured using valuation techniques with inputs 
not based on observable market data (Level 3) 

Fair value movements 
Opening balance asset/(liability) as at 1.1.2021 
Guarantee call claims paid 
Guarantee calls returned 
Revenues from guarantee settled 
Gains or losses for the period in surplus or deficit 
Transfers into level 3  
Transfers out of level 3  
Other 
Closing balance at 31.12.2021 

EUR million 

 192 
 5 
 (1) 
 (160) 
 788 
– 
– 
– 
 824 

The  net  gains  for  level  3  derivative  assets  held  at  end  of  2021  were  EUR  777  million.  This  amount  is 
presented  as  financial  revenue  and  included  under  ‘Gains  on  financial  assets  or  liabilities  at  FVSD 
derivatives’ (see note 3.9). 

72 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

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 

31.12.2021 

EUR million 
31.12.2020 

57 764 
2 901 
 126 
60 792 

28 427 
4 229 
32 656 
93 447 

30 574 
3 825 
 119 
34 519 

24 902 
3 327 
28 229 
62 748 

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.  

The  significant  increase  from  the  previous  year  is  primarily  a  result  of  the  launch  of  the  RRF  (NGEU) 
instrument in 2021, where EUR 36.4 billion of pre-financing was initially paid out. 

2.5.1. 

Pre-financing 

Shared management 
     EAFRD & other rural  
     development instruments 
     ERDF & CF 

     ESF 

     Other 

Direct Management 

Implemented by:  

     Commission 

        of which RRF (NGEU) 

     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 31.12.2021 

Gross 
amount 

Cleared via 
accruals 

EUR million 
Net amount 
at 31.12.2020 

3 172 

 (208) 

2 965 

3 193 

– 

23 531 

9 085 

4 836 

(4 571) 

(1 823) 

(2 263) 

18 960 

23 074 

7 263 

2 572 

8 222 

4 192 

(3 846) 

(1 348) 

(1 520) 

3 193 

19 229 

6 874 

2 672 

40 624 

(8 865) 

31 760 

38 681 

(6 713) 

31 967 

46 494 

34 879 

23 931 

1 140 

(11 970) 

(4 065) 

(15 030) 

 (847) 

34 525 

30 814 

8 901 

 293 

17 031 

(10 648) 

– 

– 

18 565 

(10 931) 

1 121 

 (843) 

6 382 

– 

7 633 

 278 

71 565 

(27 847) 

43 718 

36 716 

(22 423) 

14 294 

1 657 

1 874 

9 545 

12 992 

 (687) 

(1 261) 

(5 955) 

(7 453) 

26 069 

(15 356) 

138 258 

(52 068) 

57 764 

80 494 

– 

(52 068) 

 971 

 614 

3 590 

5 539 

10 713 

86 191 

57 764 

28 427 

1 243 

1 515 

9 068 

11 665 

 (781) 

(1 043) 

(6 020) 

(6 432) 

23 491 

(14 276) 

 462 

 471 

3 048 

5 233 

9 215 

98 888 

(43 412) 

55 476 

30 574 

68 314 

– 

(43 412) 

30 574 

24 902 

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. 

73 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

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 closure of the programming period and is shown as a non-current pre-financing.  

For  the  cohesion  area,  there  is  also  an  annual  pre-financing  which  is  cleared  on  a  yearly  basis  and  is 
shown  as  a  current  pre-financing.  New  pre-financing  payments  made  in  the  cohesion  area  include  the 
2021  annual  pre-financing  (EUR 7.3 billion),  but  also  payments  from  the  EU  Solidarity  Fund  (EUR  0.8 
billion).  The  new  payments  have  been  counterbalanced  by  clearings  of  approximately  similar  values, 
therefore the level of outstanding prefinancing remains stable for this area overall.  

For direct management, the biggest amounts of pre-financing are those related to the non-reimbursable 
support  concerning  the  RRF  instrument  which  began  in  2021,  net  EUR  30.8  billion  at  year-end.  Other 
significant  amounts,  EUR  8.5  billion  (2020:  EUR 9.3  billion),  refer to the  Research  area  (mainly  Horizon 
2020 and Horizon Europe, implemented by the EU executive agencies and the Commission). 

For  indirect  management,  the  pre-financing  covers  mainly  internal  policies  programmes  like  Galileo  and 
EGNOS  (Space  Programmes),  but  also  instruments  related  to  Global  Europe  (including  neighbourhood, 
development  and  international  cooperation  instruments).  The  most  notable  increase  in  pre-financing 
under this heading is related to the Space Programmes.  

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  2021  the  nominal  value  of  guarantees  received  in  respect  of  pre-financing  amounted  to 
EUR 433  million  while  the  on-going  value  of  those  guarantees  was  EUR 383  million  (2020:  EUR 466 
million and EUR 402 million respectively).  

Certain pre-financing amounts paid out under the 7th Research Framework Programme for research and 
technological  development  (FP7)  and  under  the  Horizon  2020  and  Horizon  Europe  Programmes  are 
effectively  covered  by  the  Mutual  Insurance  Mechanism  (MIM),  previously  known  as  the  Participants 
Guarantee Fund (PGF). The MIM 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  indirect  actions  under  those 
programmes.  All  participants  of  indirect  actions  receiving  a  grant  from  the  EU  contribute  5%  of  the 
maximum  EU  contribution  to  the  MIM's  capital,  which  is  invested  in  the  financial  markets  by  the 
Commission  in  order  to  generate  interest.  The  interest  may  be  used  to  cover  debts  not  honoured  by  a 
defaulting participant towards the Union. At the end of the indirect action the contributions are paid back 
to  the  participants.  The  EU  (represented  by  the  Commission)  acts  as  an  executive  agent  of  the 
participants of the MIM, but the fund is owned by the participants. The MIM is thus a separate entity that 
is not consolidated in these EU annual accounts. 

At  31  December  2021,  pre-financing  amounts  covered  by  the  MIM  totalled  EUR 2.4 billion  (2020: 
EUR 2.3 billion). The MIM total assets, including financial assets managed by the Commission, amounted 
to EUR 2.5 billion (2020: EUR 2.4 billion).  

2.5.2.  Other advances to Member States 

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

31.12.2021 

EUR million 
31.12.2020 

3 647 

3 483 
7 130 
2 901 
4 229 

3 520 

3 633 
7 153 
3 825 
3 327 

74 

 
 
 
 
 
 
Advances to Member States for financial instruments under shared management 

Annual accounts of the European Union 2021 

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 14 692 million paid, it is estimated that EUR 3 547 million was unused 
at  31  December  2021.  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 1 326 million paid 
excluding amounts still in pre-financing, out of which EUR 366 million is estimated as unused). 

For rural development, EUR 97 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  2021.  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  768  million  for  cohesion  policy  and  for 
agriculture and rural development at EUR 1 649 million. 

2007-2013 Period: 

It is estimated that EUR 66 million paid in the context of rural development remains unused at the end of 
2021. 

75 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
Annual accounts of the European Union 2021 

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 

31.12.2021 

EUR million 
31.12.2020 

34 892 
5 750 
40 642 

29 473 
2 323 
31 796 
72 438 

44 128 
1 685 
45 813 

26 915 
1 766 
28 681 
74 493 

2.6.1.  Recoverables from non-exchange transactions 

Note 

31.12.2021 

EUR million 
31.12.2020 

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 

76 

2 497 
30 839 
1 556 
– 
34 892 

5 682 
10 913 
11 698 
1 097 
 83 
29 473 
64 365 

2 237 
40 629 
1 261 
 1 
44 128 

7 213 
6 827 
11 295 
 787 
 792 
26 915 
71 043 

31.12.2021 
6 137 
1 405 
 15 
 (875) 
– 
6 683 
1 525 

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

 668 

 (843) 
1 350 
 26 
 45 
 73 
8 178 
2 497 
5 682 

 720 

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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

The largest amount included under non-current relates to amounts due from Member States, specifically 
EUR 2.1 billion  concerning  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. 

Own resources recoverables 

The  'A  accounts'  refer  to  the  monthly  statements  in  which  the  Member  States  communicate  the 
established  Traditional  own  resources  (TOR)  entitlements.  The  table  lists  the  ‘A  accounts’  amounts  that 
have not yet been paid to the Commission. TOR are mainly customs duties collected by Member States 
on behalf of the Commission. 

The ‘A accounts’ have tended to have a level in the range of EUR 3 to 3.5 billion at year-end. However, in 
the past two years 2021 and 2020, the total amount included additional TOR amounts related to the UK 
infringement  case  (see  below)  and  other  TOR  inspection  reports.  As  late  payment  interest  of  EUR  2.2 
billion  is  applicable  (2020:  EUR  1.7  billion),  those  amounts  are  therefore  also  reported  in  these  annual 
accounts (see notes 2.6.2 and 3.9). 

Concerning  the  UK  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 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  decided  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 had 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 estimated that the infringement 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). On 8 March 2022, the 
Court issued the related judgement and confirmed that the UK had infringed its obligations to protect the 
Union  budget.  However,  it  requested  the  Commission  to  re-calculate  the  amount  claimed.  The 
Commission  will  now  assess  the  judgment  and  in  particular  the  comments  of  the  Court  with  respect  to 
the  determination  of  the  amounts  at  stake.  A  detailed  legal  and  operational  analysis  is  thus  currently 
being performed, the conclusions of which are not yet available. Therefore, both the principal of EUR 2.1 
billion  and  the  estimated  late  payment  interest  of  EUR  2.1  billion  accrued  until  end  2021  (compared  to 
EUR  1.6  billion  interest  accrued  and  recognised  until  end  2020)  continue  to  be  classified  as  long-term 
assets, being the best estimate available.  

This year, at 31 December 2021, the recoverables include also an amount of EUR 0.4 billion in estimated 
TOR  losses  due  by  some  Member  States  for  textile  and  footwear  imports  from  China  at  significantly 
understated  value.  These  estimates  are  subject  to  revision,  in  particular  after  the  Court  judgement  for 
the UK infringement case.  

In  addition,  the  Commission  included  in  the  accounts  a  receivable  of  EUR  0.17  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  (i.e.  guarantee)  has  been 
provided (or 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. The impairment amounts 
are generally at a similar level at each year-end, as can be seen from the table. 

‘Own  resources  to  be  received’  in  2021  refer  to  recoverables  as  a  result  of  the  amending  budget  No 
6/2021  adopted  on  24  November  2021.  The  amounts  were  entered  by  Member  States  on  the  first 
working day of January 2022. 

EAGF and Rural Development recoverables 

This item primarily covers the amounts owed by Member States at 31 December 2021, as declared and 
certified by the Member States as at 15 October 2021. An estimation is made for the recoverables arising 
after this declaration and up to 31 December 2021. 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 

77 

 
Annual accounts of the European Union 2021 

20% is also included in the adjustment and corresponds to what Member States are allowed to retain to 
cover administrative costs. 

2.6.1.2.  UK Withdrawal Agreement 

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. As at 31 December 2021, the net receivable from the UK based on these obligations amounted to 
EUR 41 753 million (2020: EUR 47 456 million), of which EUR 10 913 million is to be paid within the 12 
months following the reporting date (2020: EUR 6 827 million): 

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

Article 140 
28 620 
- 
28 620 
17 064 
11 556 

Article 142 
14 751 
- 
14 751 
14 486 
265 

Other 
610 
(2 229) 
(1 618) 
(711) 
(908) 

31.12.2021 
43 982 
(2 229) 
41 753 
30 839 
10 913 

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

Adjustment of UK share (Article 139) 

According  to  Article  139,  the  United  Kingdom's  share  of  the  financial  obligations  arising  out  of  the  WA 
shall  be  a  percentage  calculated  as  the  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.  This  had  been  calculated  in  March  2021  as  being 
12.358072326018200%.  However,  in  accordance  with  Article  139,  the  share  has  to  be  adjusted  by  the 
amount  of  the  VAT  and  GNI  balances  (2014-2020)  communicated  to  the  Member  States  before 
1 February  2022.  Therefore,  the  final  UK  share  has  been  calculated  to  be  12.431681219587700%. 
Following the adjustment of the UK share in relation to the calculations underlying the amounts already 
invoiced to the UK in 2021, an additional amount of EUR 67 million was invoiced to the UK in April 2022. 

Payments under the Withdrawal Agreement 

The payment mechanism to be applied to the obligations provided for between the two parties is laid out 
in Article 148. In summary, the EU invoices the net amounts due from the UK in April and September of 
each year and the UK pays these on a monthly basis. The amounts reported in April of a given year are 
to be paid in four equal monthly instalments from June to September of that year. The amounts reported 
in September are to be paid in eight equal monthly instalments from October of that year to May of the 
following  year.  Since  some  amounts  reported  are  necessarily  based  on  forecasts  and  estimates,  the 
reporting is updated each year based on actual figures. 

In 2021 the total amount reported to the UK under Article 136, and Articles 140 to 147, was EUR 11 930 
million,  of  which  EUR  3 763  million  was  reported  in  April  2021  and  EUR  8  166  million  was  reported  in 
September  2021.  The  total  payments  received  in  2021  amounted  to  EUR  6  826  million,  of  which  EUR 
3 763  million  related  to  the  April  report  (paid  in  four  equal  monthly  instalments  in  the  period  June  to 
September 2021) and EUR 3 062 related to the September report (paid in three equal instalments in the 
period October to December 2021):  

78 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

April 2021 report 

September 2021 report: 

(due and paid 
from June to 
September 2021) 

(due and paid 
from October to 
December 2021 

3 696 
- 
230 
21 
3 946 

- 
(93) 
(46) 
(37) 
(7) 
(183) 
3 763 

3 054 
11 
18 
- 
3 083 

(20) 
- 
- 
- 
- 
(20) 
3 062 

EUR million 

Total 

6 750 
11 
247 
21 
7 029 

(20) 
(93) 
(46) 
(37) 
(7) 
(203) 
6 826 

Article 140 
Article 142 
Article 136 
Article 147 

Article 141 
Article 143 
Article 144 
Article 145 
Article 146 

Total 

The remaining balance  of the  September  2021  invoice  at  the end of the  year,  amounting  to EUR 5 104 
million, was paid in five equal monthly instalments in the period January to May 2022. 

Article 140 – Outstanding Commitments 

The  UK  has  committed  to  pay  to  the  EU  its  share  of  the  outstanding  budgetary  commitments  at  31 
December  2020  (the  so  called  ‘Brexit  RAL’),  as  adjusted  by  the  requirements  of  Article  140.  At  31 
December  2021,  the  total  amount  recognised  as  a  receivable  amounted  to  EUR  28 620  million  (2020: 
EUR 34 966 million), of which EUR 11 556 million is payable within the 12 months following the year-end. 
The following table presents the main movements between the total amount recognised as a receivable 
at 31 December 2020 (calculated based on the unadjusted UK share) and the total amount recognised as 
a receivable at 31 December 2021: 

Amount owed by the UK at 31.12.2020 (based on unadjusted UK share) 
Adjustment of UK share 
Amount owed by the UK at 31.12.2020 (based on adjusted UK share) 
Net financial corrections related to 2014-2020 or previous programme periods 
(including adjustment of 2020 deductions) 

TOR relating to 2020 and made available to the Union in 2021 
(including adjustment of 2020 deductions) 

Net payments received from the UK in 2021 
Adjustment of estimated non-implementation 

Total 

Non-current 
Current 

EUR million 

34 966 
208  
35 174 
(58)  

(82)  

(6 750) 
337 

28 620 

17 064 
11 556 

The year-on-year decrease of the total amount recognised as a receivable amounted to EUR 6 346 million 
and was mainly due to the payments received from the UK in 2021 (EUR 6 750 million). 

The adjustment of the amount owed by the UK at 31 December 2020, resulting in an increase of EUR 208 
million, reflects the adjustment of the UK share of the adjusted budgetary commitments at 31 December 
2020  on  which  the  UK  share  is  applied  (EUR  216.7  million).  Also  included  are  the  adjustments  of  the 
deductions included in the 2020 EU Annual Accounts for net financial corrections related to 2014-2020 or 
previous programme periods and TOR relating to 2020 and made available to the Union in 2021 (EUR 2.4 
million), and the adjustment of the deduction for the estimated non-implementation (EUR 6.0 million). 

79 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

The  total  deduction  for  net  financial  corrections  related  to  2014-2020  or  previous  programme  periods, 
amounting to EUR 58.5 million, comprises the amounts invoiced in September 2021 which were not yet 
included in the 2020 annual accounts (EUR 34.8 million, of which EUR 12.8 million was paid by the UK in 
the period October to December 2021 and EUR 22.0 million from January to May 2022), the adjustment 
of the UK share of these amounts (EUR 0.2 million) and the amounts to be invoiced in September 2022 
and payable in October to December 2022 (EUR 23.5 million). 

The total deduction for TOR relating to 2020 and made available to the Union in 2021, amounting to EUR 
82.0 million, comprises the amounts invoiced in September 2021 which were not yet included in the 2020 
annual accounts (EUR 16.7 million, of which EUR 6.3 million was paid by the UK in the period October to 
December  2021  and  EUR  10.4  million  from  January  to  May  2022),  the  adjustment  of  the  UK  share  of 
these amounts (EUR 0.1 million), and the amounts invoiced in April 2022 (EUR 65.2 million). 

The  amount  to  be  paid  within  12  months  from  the  reporting  date  (EUR  11 556  million),  comprises  the 
remaining balance of the September 2021 invoice (EUR 5 090 million), the amount invoiced in April 2022 
(EUR 4 029 million) and the amount to be invoiced in September 2022 and payable in the period October 
to  December  2022  (EUR  2 437  million).  The  amount  invoiced  in  April  2022  is  composed  of  EUR  3 280 
million relating to the UK’s share of the estimated RAL implementation in 2022, EUR 65.2 million to the 
deductions for TOR, EUR 70.5 million to the adjustment of the UK share of the amounts invoiced in 2021, 
and  EUR  743.6  million  relating  to  the  adjustment  of  the  UK  share  of  the  RAL  due  to  implementation  in 
2021.  The  amount  to  be  invoiced  in  September  2022  and  payable  in  the  period  October  to  December 
2022 is made up of EUR 2 460 million relating to the UK’s share of the estimated RAL implementation in 
2022 and EUR 23.5 million relating to the deductions for net financial corrections. 

Following the update of the official Commission forecast of decommitments of the entire stock of RAL at 
31  December  2020,  the  UK  amounts  owed  increased  by  EUR  337  million  due  to  the  updated  estimated 
non-implementation. 

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 benefit liabilities (pensions 
and sickness insurance) existing at 31 December 2020.  

Outstanding 2020 liabilities under Article 142 (6) 

Outstanding 2020 liabilities 
UK Share 
PSEO/JSIS contributions 
Total 
Non-current 
Current 

Pension Scheme 
of European 
Officials 
104 832 
13 032 
227 
13 260 

13 032 
227 

Joint Sickness 
Insurance 
Scheme 
9 675 
1 203 
8 
1 211 

1 203 
8 

EUR million 

31.12.2021 

31.12.2020 

114 507 
14 235 
236 
14 471 

14 235 
236 

113 676 
14 048 
0 
14 048 

14 048 
0 

According to the default payment mode laid out in Article 142 (6), the UK contributes annually to the net 
payments made from the Union budget in the preceding year to each beneficiary of the Pension Scheme 
of  European  Officials  (PSEO)  and  to  the  related  contribution  of  the  Union  budget  to  the  Joint  Sickness 
Insurance Scheme (JSIS) for each beneficiary or person who benefits through a beneficiary. The payment 
of  these  annual  contributions  are  scheduled  to  start  as  from  June  2022  (with  each  annual  instalment 
payable in four monthly instalments from June to September of the respective year).  

The adjusted UK share of the net payments made from the Union budget in 2021 to the beneficiaries of 
the PSEO and to JSIS amounted to EUR 227 million and EUR 8 million, respectively. These amounts were 
communicated  to  the  UK  as  part  of  the  April  2022  invoice  (and  thus  be  payable  in  four  equal  monthly 
instalments in the period June to September 2022).  

In  addition,  at  31  December  2021  the  outstanding  2020  UK  liabilities  under  Article  142 (6),  relating  to 
the  Pension  Scheme  of  the  European  Officials  (PSEO)  and  the  Joint  Sickness  Insurance  Scheme  (JSIS) 
amounted to EUR 13 032 million and EUR 1 203 million, respectively (2020: EUR 12 450 million and EUR 

80 

 
 
 
 
 
 
Annual accounts of the European Union 2021 

1 599 million). The increase for the PSEO scheme was primarily driven by the actuarial loss from changes 
in  financial  assumptions  –  see  note  2.9  for  more  details.  It  is  noted  that  while  the  actuarial  loss  from 
changes in financial assumptions impacts the present value of the outstanding 2020 liabilities calculated 
on the basis of IPSAS 39/EAR 12, it does not change either the amount of benefits that will have to be 
actually  paid  by  the  EU,  or,  by  implication,  the  UK  contributions  to  these  payments  as  due  under  the 
default settlement mechanism of Article 142 (6). 

As  at  31  December  2021,  the  UK  has  not  made  use  of  the  early  settlement  option  providing  for  the 
payment of the outstanding 2020 PSEO and JSIS liabilities, calculated using actuarial valuations made in 
accordance with  IPSAS 39/EAR 12, in five equal instalments following the procedure laid out in the last 
subparagraph of Article 142 (6). 

Outstanding 2020 liabilities under Article 142 (5) 

According  to  Article  142 (5),  the  UK  contributes  to  the  liabilities  relating  to  the  Other  retirement 
(pension) schemes as they were recorded in the consolidated accounts of the Union for the financial year 
2020  in  10  instalments  starting  on  31  October  2021  (with  each  annual  instalment  payable  in  eight 
monthly  instalments  from  October  to  May  the  following  year).  These  liabilities  in  the  consolidated 
accounts of the Union for the financial year 2020 amounted to EUR 2 344 billion, resulting in an adjusted 
UK share at 31 December 2020 of EUR 291 million. Taking into account the amounts received from the 
UK  during  2021,  totalling  EUR  11  million,  the  outstanding  UK  share  of  the  Other  retirement  (pension) 
schemes decreased to EUR 281 million at 31 December 2021, of which EUR 29 million is to be paid within 
the 12 months following the year-end. 

For more information regarding the employee benefit schemes, please see note 1.5.10 and note 2.9. 

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 

31.12.2021 

31.12.2020 

557 
53 
610 

(1 818) 
(163) 
(73) 
(148) 
(27) 
(2 229) 
(1 618) 
(711) 
(908) 

 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 or obliged to pay, as the case may be, 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 
opt-out for 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  updates  of  the  UK  correction  of  2018-2019  are  also  to  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 years 2020 and earlier. Their share of the total made available by them is then deducted 
from  this  amount.  The  separate  account  for  Traditional  own  resources  shall  be  fully  liquidated  at  31 
December 2025. 

81 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

The net amount due from the UK outstanding at 31 December 2021 is EUR 557 million, of which EUR 544 
million will have to be paid to the UK within the 12 months following the year-end and EUR 1 101 million 
will have to be paid by the UK afterwards: 

Amount due from the UK at 31.12.2020 
Adjustment of UK share 
Amount invoiced to the UK in September 2021 
Payments received in 2021 
UK correction 
Opt-out 

VAT and GNI adjustments (related to 2020 and before) 
UK net Traditional own resources after 28 February 2021 
Amount due from the UK at 31.12.2021 
Non-current 
Current 

Article 141 – Fines 

EUR million 

230 
(2) 
47 
(247) 
(497) 
(105) 
1 101 
31 
 557 
1 101 
(544) 

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  which  were  outstanding  at  31  December  2021  is  EUR  13.8 
billion  (2020:  EUR  14.3  billion).  The  decrease  of  EUR  0.5  billion  is  mainly  due  to  the  increase  in  the 
impairment  of  fines  of  EUR  0.9  billion,  counterbalanced  by  the  net  increase  in  fines  of  EUR  0.3  billion 
(EUR  1.7  billion  of  fines  issued  in  2021  less  EUR  1.4  billion  of  fines  confirmed  and  paid,  reduced  or 
cancelled  by  court  decisions  during  2021).  The  adjusted  UK  share  of  these  fines  outstanding  at  31 
December 2021 is EUR 1.7 billion (2020 (unadjusted share): EUR 1.8 billion), out of which an amount of 
EUR 80.8 million will be included in the September 2022 invoice and paid to the UK in the period October 
2022 to May 2023. In addition, the UK is entitled to the adjusted UK share of definitive fines which were 
not yet invoiced (EUR 69.2 million, also to be included in the September 2022 invoice and paid to the UK 
in the period October 2022 to May 2023), the unadjusted UK share of definitive fines that was invoiced in 
September 2021 but not yet paid at year-end (EUR 33.6 million, paid to the UK in the period January to 
May 2022), and the adjustment of the UK share of the fines which was invoiced in September 2021 (EUR 
0.3  million,  included  in  the  April  2022  invoice  and  payable  to  the  UK  in  the  period  June  to  September 
2022). The total UK share of fines thus amounts to EUR 1.8 billion (2020: 1.8 billion), of which EUR 90.2 
million is to be paid within the 12 months following the reporting date (2020 (unadjusted share): EUR 20 
million). 

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 
2021  the  amount  to  be  paid  to  the  UK,  all  within  the  next  12  months,  is  EUR  163  million  (2020 
(unadjusted share): EUR 93 million). 

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 2021 the amount to be paid to 
the UK, all within the next 12 months, is EUR 73 million (2020 (unadjusted share): EUR 46 million). 

82 

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

Annual accounts of the European Union 2021 

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  adjusted  UK  share  is  EUR  184  million 
(2020  (unadjusted  share):  EUR  183  million).  Following  the  payment  of  the  first  instalment  of  EUR  37 
million  in  2021,  the  outstanding  amount  at  31  December  2021  is  EUR  148  million,  of  which  EUR  37 
million is to be paid within 12 months following the reporting date.  

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  of  which  the 
adjusted UK share is EUR 33 million (2020 (unadjusted share): EUR 33 million). Following the payment of 
the first instalment of EUR 7 million, the outstanding amount at 31 December 2021 is EUR 27 million, of 
which EUR 7 million is to be paid within 12 months following the reporting date.  

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  by  the  EU  for  legal  cases  in  2021  (excluding  those  already 
reported  to  and  paid  by  the  UK  in  2021)  the  estimated  amount  that  the  UK  will  have  to  pay  is  EUR  53 
million (2020 (unadjusted share): EUR 46 million), of which EUR 6 million is to be paid within 12 months 
following the reporting date. 

2.6.1.3.  Recoverables from competition fines 

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

31.12.2021 
14 922 
(2 100) 
(1 125) 
11 698 
– 
11 698 

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

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 the total outstanding fines at 
year-end, EUR 2 100 million (2020: EUR 3 023 million) has been received as provisional payments while 
EUR 11 067 million (2020: EUR 11 004 million) of guarantees have been received.  

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

A  contingent  liability  is  disclosed  for  the  possibility  of  having  to  pay  back  provisionally  paid  amounts  to 
the fined companies – see note 4.2.1. 

2.6.1.4.  Accrued income and deferred charges 

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

83 

31.12.2021 
2 313 
 340 
2 653 
1 556 
1 097 

EUR million 
31.12.2020 
1 755 
 293 
2 048 
1 261 
 787 

 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Accrued income includes EUR 2 billion (2020: EUR 1.7 billion) that 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. The biggest part of this amount (EUR 1.2 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  is  classified  as  non-current.  It  also  includes  EUR  0.3  billion  that 
concerns  the  undervaluation  case  mentioned  in  note  2.6.1.1,  specifically  the  estimates  not  yet 
provisionally paid by the Member States. 

2.6.1.5.  Other recoverables 

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, and included in other recoverables at the end of 2020, has 
been recovered during 2021 – see note 2.4.2.1. 

2.6.2.  Receivables from exchange transactions 

Non-current 
Financial guarantee receivable leg 
Late payment interest 
Other receivables 

Current 
Financial guarantee receivable leg 
Customers 
Impairment on receivables from customers 
Deferred charges relating to exchange transactions 
Late payment interest 
Other 

Total 

31.12.2021 

EUR million 
31.12.2020 

2 630 
3 052 
 68 
5 750 

 485 
 302 
 (172) 
 236 
1 127 
 345 
2 323 
8 073 

– 
1 641 
 44 
1 685 

– 
 324 
 (188) 
 345 
1 085 
 200 
1 766 
3 450 

The  non-current  late  payment  interest  concerns  the  undervaluation  cases  mentioned  in  note  2.6.1.1 
(EUR  1.8  billion  relates  to  the  UK  and  the  remaining  amount  of  EUR  1.3  billion  relates  to  the  other 
Member States), while the current late payment interest concerns mainly accrued income stemming from 
TOR inspection reports and accrued interest on guarantees provided by fined companies. 

The  financial  guarantee  contract  (FGC)  receivable  leg  represents  the  present  value  of  premiums  to  be 
received  as  remuneration  for  guarantees  given  by  the  EU.  The  majority  of  the  EU  guarantees  are  non-
remunerated or subsidized. Therefore the receivable is significantly smaller than the financial guarantee 
contract  liability  (see  note  2.11.2).  An  exception  of  this  rule,  is  the  EFSI  guarantee  that  in  2021 
constituted 94% of the FGC receivable leg, followed by the private sector lending mandate part of the EU 
external  lending  mandate  guarantee  to  EIB  (ELM)  that  in  2021  accounted  for  EUR  106  million  and 
Horizon 2020 for EUR 59 million. Out of the total amount of EUR 3 115 million of the FGC receivable leg 
as  at  31 December  2021,  EUR  3  113  million  is  classified  as  financial  assets  measured  at  fair  value 
through surplus or deficit (Fair value level 3). Compared to the opening balance as at 1 January 2021 of 
EUR 3 484  million,  in  total  the  receivable  leg  has  decreased  by  EUR  357  million  due  to  settlements  in 
2021 and by another EUR 12 million due to fewer future premiums than expected. 

2.7.  INVENTORIES  

Scientific materials 
Other 
Total 

31.12.2021 
 58 
 26 
 84 

EUR million 
31.12.2020 
 59 
 21 
 80 

84 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

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 
NGEU 
Financial instruments 
Fines 
Other institutions, agencies and bodies 
Trust funds 

Total 

Note 

2.8.1 
2.8.2 
2.8.3 
2.8.4 

EUR million 
31.12.2021  31.12.2020 
11 342 
 80 
 8 
 0 
11 430 
– 
2 446 
1 458 
1 362 
 46 

20 121 
 453 
 8 
– 
20 582 
18 027 
2 838 
1 953 
1 396 
 65 

44 860 

16 742 

2.8.1.  Bank accounts for budget implementation 

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  2021  is  driven  by  the  following 
main elements: 

  An amount of EUR 14.4 billion non-implemented at year-end, of which EUR 8.6 billion relates to 
assigned revenues, EUR 1.4 billion relates to NGEU credits and EUR 4.4 billion relates to payment 
appropriations (including EUR 1.4 billion of EAGF); 

  An amount of EUR 2.2 billion belonging to agencies’ treasuries managed by the Commission that 

has not been spent at year end; 

  An amount of EUR 1.7 billion additional Traditional own resources cashed not budgeted; and 

  An amount of EUR 1.1 billion of definitive fines not yet budgeted. 

2.8.2.  NGEU 

NGEU holds cash on a bank account at the European Central Bank (ECB). With the implementation of the 
diversified  funding  strategy  in  the  NGEU  instrument  –  see  note  2.11  –  the  cash  balance  in  the  NGEU 
instrument is substantial and reached EUR 18 billion as  at 31 December 2021. The high cash balance is 
kept with the objective of ensuring that amounts held on the NGEU bank account are sufficient to meet 
all  upcoming  disbursement  needs  and  maintain  a  defined  safety  buffer  while  avoiding  any  excess 
balances. 

2.8.3. 

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:  EUR 1.8 billion as  at 31 December 2021, of which  EUR  0.6 billion relates to COSME 
Guarantee Facility – see note 4.1.3. It also includes cash and cash equivalents held in  the CPF and not 
yet invested in securities at year-end (EUR 1 billion as at 31 December 2021) and the cash belonging to 
the  Innovation  Fund  managed  by  the  EIB  –  see  note  2.4.2.1.  This  heading  does  not  cover  the  CPF 
related  liquidity  buffer  (EUR  91.6  million  as  at  31  December  2021),  which  is  held  in  the  Commission’s 
central  treasury.  Cash  belonging  to  financial  instruments  can  only  be  used  by  the  programmes 
concerned. 

85 

 
 
 
 
 
 
 
 
 
 
 
 
 
2.8.4. 

Fines 

Annual accounts of the European Union 2021 

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 fined company, 
the  underlying  amount  is  shown  as  contingent  liability  in  note  4.2.1.  Since  2010,  all  subsequent 
provisionally  cashed  fines  are  managed  by  the  Commission  in  the  BUFI  fund  and  invested  in  financial 
instruments  categorised  as  financial  assets  at  FVSD  non-derivatives  (see  note  2.4.2).  The  increase  of 
cash relating to fines at 2021 year-end is due to a higher cash balance held in BUFI as compared to the 
2020  year-end.  It  should  be  noted  that  following  the  judgement  of  the  General  Court  of  the  EU  in  the 
Intel Corporation vs Commission case in January 2022, the Commission has reimbursed in February 2022 
an amount previously provisionally paid by Intel of EUR 1 060 million. 

86 

 
 
Annual accounts of the European Union 2021 

LIABILITIES 

2.9.  PENSION AND OTHER EMPLOYEE BENEFITS 

2.9.1.  Net employee benefit scheme liability 

Pension 
Scheme of 
European 
Officials 
109 679 
N/A 
109 679 

Other 
retirement 
benefit 
schemes 
2 600 
 (74) 
2 526 

Joint Sickness 
Insurance 
Scheme 

31.12.2021  
Total 

EUR million 
31.12.2020  
Total 

10 647 
 (386) 
10 261 

122 926 
 (460) 
122 466 

116 468 
 (448) 
116 020 

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 the underlying financial assumptions (see 
note 2.9.4). This has been driven by an increase in the inflation rate, which led to a decrease of the real 
discount  rate.  The  real  discount  rate  remained  negative  for  the  third  year  running  –  meaning  that  any 
given amount in the future continued to be worth more today than when it actually occurs in the future. 
It must be noted that while a decrease in the real discount rate impacts the size of the liability, it does 
not  change  the  amount  of  benefits  that  will  have  to  be  actually  paid  from  the  EU  budget  to  the 
beneficiaries  in  future  years.  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 EUs 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 
3.8. 

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 
2021 and on the rules of  the Staff Regulations applicable at this date. This valuation was carried out in 
accordance with the accounting provisions 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,  European  Court  of  Justice,  and  the  Court  of  Auditors,  the  Council,  the  European 
Ombudsman,  and  the  European  Data  Protection  Supervisor.  Also  included  under  this  heading  are 
liabilities 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 
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. 

87 

 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Taking into account the obligation to faithfully present the economic substance of the underlying situation 
as  required  by  both  EAR  and  IPSAS,  IPSAS  39  has  not  been  interpreted  in  a  stricter  sense  when 
attributing  the  benefits  to  the  periods  of  service.  If  the  service  cost  were  to  be  accrued  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 3.1 
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 31.12.2020 
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 31.12.2021 

Pension Scheme 
of European 
Officials  
100 741 

Other 
retirement 
benefit schemes 
2 438 

Joint Sickness 
Insurance 
Scheme 
13 289 

EUR million 
Total 

116 468 

4 095 
 401 
– 

1 457 

– 

4 787 

 110 
 5 
– 

 26 

– 

 90 

 363 
 66 
– 

4 567 
 473 
– 

 (209) 

1 273 

– 

– 

(2 774) 

2 103 

(1 801) 
109 679 

 (69) 
2 600 

 (88) 
10 647 

(1 957) 
122 926 

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 2021 and what really occurred in 2021. 

Actuarial  gains  and  losses  from  changes  in  the  values  of  the  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. 

88 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.9.3. 

Plan assets 

Annual accounts of the European Union 2021 

Present value as at 31.12.2020 
Net movement in plan assets 
Present value as at 31.12.2021 

Other retirement 
benefit schemes 
 94 
 (20) 
 74 

Joint Sickness 
Insurance Scheme 
 354 
 32 
 386 

EUR million 
Total 

 448 
 12 
 460 

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 
Nominal discount rate  
Expected inflation rate  
Real discount rate 
Expected rate of future salary increases 
Medical cost trend rates 
Retirement age 
Joint Sickness Insurance Scheme 
Nominal discount rate  
Expected inflation rate  
Real discount rate 
Expected rate of future salary increases 
Medical cost trend rates 
Retirement age 

2021 

1.0% 
2.0% 
(1.0)% 
1.8% 
N/A 

63/64/66 

1.0% 
2.0% 
(1.0)% 
1.9% 
2.5% 

63/64/66 

2020 

0.4% 
1.2% 
(0.8)% 
1.8% 
N/A 
63/64/66 

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

Mortality rates for 2021 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  2021  for  the  PSEO,  and  25  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. 

While in 2021 the nominal rates started recovering from the previously observed decline, the impact from 
their  increase  was  counterbalanced  by  a  significant  increase  in  the  inflation  rate  assumption.  This 
resulted  in  an  overall  decrease  in  the  real  discount  rate,  thus  continuing  the  negative  trend  and 
contributing to the actuarial loss from financial assumptions in the year. 

2.9.5.  Sensitivity analysis  

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% 
2 544 

(2 464) 

Increase 0.1%  Decrease 0.1% 
2 319 

(2 247) 

2021 

EUR million 

2020 

89 

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

Annual accounts of the European Union 2021 

Defined benefit obligation 

Increase 0.1%  Decrease 0.1% 
(2 345) 

2 414 

Increase 0.1%  Decrease 0.1% 
(2 143) 

2 206 

2021 

EUR million 

2020 

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

2021 

2020 

EUR million 

Defined benefit obligation 

  One year increase  One year decrease  One year increase  One year decrease 
1 417 

(1 155) 

(1 104) 

1 527 

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 

2021 

EUR million 

2020 

Increase 0.1%  Decrease 0.1% 

Increase 0.1%  Decrease 0.1% 

 13 

 (12) 

 15 

 (14) 

 317 

 (307) 

 397 

 (385) 

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% 
 274 

 (265) 

Increase 0.1%  Decrease 0.1% 
 361 

 (348) 

2021 

EUR million 

2020 

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% 
 41 

 (42) 

Increase 0.1%  Decrease 0.1% 
 37 

 (38) 

2021 

EUR million 

2020 

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

2021 

2020 

EUR million 

Defined benefit obligation 

  One year increase  One year decrease  One year increase  One year decrease 
 421 

 (317) 

 (401) 

 334 

90 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

2.10.  PROVISIONS 

Amount at 
31.12.2020 

Revision 
of 
EAR 11 

Additional 
provisions 

Unused 
amounts 
reversed 

Amounts 
used 

Transfer 
between 
categories 

Change in 
estimation 

Amount at 
31.12.2021 

EUR million 

Legal cases: 
     Agriculture 
     Other 
Nuclear site 
dismantlement 
Financial 
Other 
Total 
Non-current 

 170 
 31 

2 426 

– 
– 

– 

 254 

2 523  (2 522) 
– 
5 405  (2 522) 
3 878  (1 165) 

 210 
 5 

– 

 1 
 284 
 500 
 212 

 (25) 
 (14) 

 (1) 
 (2) 

– 

 (33) 

– 
 (26) 
 (65) 
 (25) 

 (1) 
 (19) 
 (55) 
 (1) 

– 
– 

– 

– 
– 
– 
 (35) 

– 
 2 

 46 

– 
 37 
 86 
 86 

 354 
 22 

2 440 

 1 
 530 
3 348 
2 950 

Current 

1 527  (1 357) 

 288 

 (40) 

 (55) 

 35 

 (0) 

 398 

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 and the EAFRD.  

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 2021, this resulted in a provision of 
EUR 2 440 million, split between amounts expected to be used in 2022 (EUR 35 million) and afterwards 
(EUR 2 405 million). 

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 

Until  31  December  2020  most  financial  guarantees  were  accounted  for  as  provisions  or  disclosed  as 
contingent liabilities, depending on the probability of loss. As of 1 January 2021, with the entry into force 
of the revised EAR 11 Financial instruments, they have been reclassified as Financial Guarantee Liabilities 
and remeasured (see notes 1 and 2.11).  

The  remaining  balance  as  at  31  December  2021  is  mainly  related  to  the  expected  credit  losses  for 
undrawn irrevocable commitments. 

91 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

2.11.   FINANCIAL LIABILITIES 

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

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 NGEU and financial assistance  
Other financial liabilities 
Total 
Non-Current 
Current 

2.11.1.1.  Borrowings for NGEU and financial assistance 

Note 

31.12.2021 

EUR million 
31.12.2020 

2.11.1 

2.4.2.2 

2.11.2 

2.11.1 

2.4.2.2 

2.11.2 

Note 
2.11.1.1 
2.11.1.2 

214 824 

84 395 

 5 

 146 
214 974 

 4 

– 
84 399 

23 501 

10 559 

– 

7 648 
31 149 
246 123 

 0 

 90 
10 649 
95 048 

31.12.2021 
236 720 
1 605 
238 325 
214 824 
23 501 

EUR million 
31.12.2020 
93 192 
1 761 
94 954 
84 395 
10 559 

Total at 31.12.2020 
Revision of EAR 11 
New borrowings - nominal 
Repayments 
Changes in carrying amount 
Total at 31.12.2021 
Non-current 
Current 

NGEU 

– 
111 947 
(20 996) 
 49 

SURE 
39 503 
 420 
50 137 
– 
 507 

EFSM 
47 396 
 (114) 
9 750 
(9 750) 
 (144) 
91 000  90 567  47 138 
43 969 
90 502 
70 960 
3 169 
 65 
20 040 

BOP 
 201 
 (1) 
– 
– 
0 
 201 
 200 
 1 

MFA  Euratom 
 279 
 1 
 100 
 (29) 
– 

EUR million 
Total 
93 192 
 329 
173 599 
(30 789) 
 388 
 351  236 720 
213 383 
 327 
23 338 
 24 

5 813 
 24 
1 665 
 (14) 
 (24) 
7 464 
7 425 
 39 

Borrowings mainly refer to long term bonds for NGEU and financial assistance programmes, however as 
of 2021 the Commission is also issuing EU-bills with short maturities for the NGEU (EUR 20 billion as at 
31 December 2021).  

NGEU  borrowings  are  financing  RRF  loans,  RRF  non-repayable  support  and  other  MFF  programmes.  For 
NGEU,  the  Commission  does  not  borrow  on  a  strict  back-to-back  basis  i.e.  in  order  to  finance  specific 
loans. There is an annual borrowing plan based on the forecasted outflows for loans and  non-repayable 
support.  The  Commission  follows  a  diversified  funding  strategy  and  uses  different  long  and  short  term 
funding  instruments.  This  allows  the  Commission  to  offer  long-term  loans  on  attractive  terms  to 
beneficiary Member States. The borrowing costs are then allocated – following a single unified approach – 
to beneficiaries of the loans and to the EU budget (for the non-repayable support).  

The  changes  in  carrying  amount  correspond  to  the  change  in  accrued  interests  and  to  the  change  in 
premiums/discounts (new premiums/discounts and amortisation). 

92 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

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. 

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

NGEU 
SURE 
EFSM 
BOP 
MFA 
Euratom 

31.12.2021 
(0.95)% - 0.74% 
(0.48)% - 0.77% 
(0.03)% - 3.79% 
2.95% 
(0.14)% - 3.70% 
(0.08)% - 1.58% 

31.12.2020 
- 
0.00% - 0.30% 
0.50% - 3.75% 
2.88% 
0.00% - 3.69% 
0.00% - 5.68% 

The 2020 figures refer to nominal interest rates, while 2021 figures are effective interest rates in line with the revised EAR 11. 

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 

31.12.2021 

EUR million 
31.12.2020 

1 017 
 291 
 133 
1 441 

 103 
 54 
– 
 6 
 164 
1 605 

Future amounts to be paid 

< 1 year 

1-5 years 

> 5 years 

1 130 
 346 
 136 
1 612 

 101 
 38 
 8 
 2 
 149 
1 761 

EUR million 

Total 
Liability 
1 105 
 15 
1 120 
 275 

1 395 

Land and buildings 
Other fixed assets 
Total at 31.12.2021 
Interest element 
Total future minimum lease payments at 
31.12.2021 
Total future minimum lease payments at 
31.12.2020 

 98 
 6 
 103 
 41 

 145 

 151 

 471 
 9 
 480 
 140 

 619 

 636 

 537 
– 
 537 
 94 

 631 

 790 

1 576 

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

93 

 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
2.11.2.  Financial guarantee liabilities 

Annual accounts of the European Union 2021 

EU budgetary guarantee programmes 
EFSI guarantee  
EIB ELM guarantees 
EFSD guarantee 
InvestEU guarantee 
NDICI EU guarantee 

EU financial instrument programmes 
COSME 
Horizon 2020 
CCS 
Other 

Total 
Non-current 
Current 

31.12.2021 

FGC receivable leg 
(Note 2.6.2) 

Financial guarantee 
 liabilities 

EUR million 

2 917 
 106 
 2 
– 
– 
3 024 

 0 
 59 
– 
 32 
 90 

3 115 
2 630 
 485 

3 618 
2 569 
 139 
– 
 4 
6 330 

 780 
 410 
 110 
 165 
1 464 

7 794 
 146 
7 648 

In  previous  years  only  guarantees  with  market-based  remuneration  were  accounted  for  as  financial 
guarantee contracts, being the EFSI guarantee on the debt portfolio disbursed by the EIB under the EFSI 
Innovation  and  Infrastructure  window  (IIW)  and  a  small  subset  of  the  External  Lending  Mandate  (ELM) 
guarantee limited to the EIB loans disbursed under the EIB Resilience Initiative (ERI).  

The  application  of  the  revised  EAR  11  as  at  1  January  2021  led  to  a  reclassification  of  financial 
guarantees,  previously  accounted  for  as  provisions,  to  financial  guarantee  contracts  (‘FGC’).  Moreover, 
the  guarantee  liabilities  were  remeasured  in  accordance  with  the  new  expected  credit  loss  perspective. 
For the impact of the application of the revised EAR 11 please see note 1. 

As  of  2021,  the  EU  applies  the  gross  presentation  of  the  financial  guarantee  contracts,  where  the 
revenues  still  to  be  received  under  the  guarantee  are  recognised  as  a  FGC  receivable  leg  (presented 
under the exchange receivables heading – see note 2.6.2) and a FGC liability is recognised representing 
the  EU  liabililty  for  coverage  of  the  future  guarantee  claims.  Previously,  the  EFSI  and  ELM  guarantees 
were shown net, i.e. netting the expected receivables and liabilities of the guarantee.  

The EFSI guarantee remains the financially most significant of the financial guarantee programmes, with 
a  financial  guarantee  contract  liability  of  EUR  3  618  million,  followed  by  the  ELM  guarantee  having 
a liability of EUR 2 569 million. While in return for the EFSI guarantee, the EU is entitled to an expected 
remuneration of EUR 2 917 million recognised as a financial guarantee contract - receivable covering to a 
large  extent  the  liability,  for  the  ELM  guarantee  the  expected  receivable  is  just  EUR  106  million,  thus 
covering  only  a  small  fraction  of  the  guarantee  -  this  is  due  to  a  high  share  of  EU  subsidisation  of  the 
ELM.  

Most of the remaining EU guarantee programmes, in particular those provided for higher-risk financing to 
SMEs or to the innovation sector, are non-remunerated. Please see note 2.4.2.1 for further information 
on guarantees under the H2020 programme and note 4.1.3 in relation to COSME. 

94 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

2.12.  PAYABLES 

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

ESF 

RRF (NGEU) 

Other 

Private and public entities 
Total cost claims and 
invoices received 
EAGF 

Sundry payables 

Other 

Total 

Gross 
Amount 

Adjustments 

Net Amount 
at 31.12.2021 

Gross 
Amount 

Adjustments 

EUR million 
Net Amount 
at 31.12.2020 

 30 

 (0) 

 30 

 17 

– 

6 484 

3 311 

19 118 

 663 

1 563 

(1 878) 

 (596) 

 (58) 

 (320) 

4 606 

2 715 

19 118 

 605 

1 244 

12 651 

3 479 

– 

 792 

1 485 

(2 698) 

 (370) 

– 

 (90) 

 (182) 

 17 

9 954 

3 109 

– 

 701 

1 302 

31 169 

(2 851) 

28 318 

18 424 

(3 341) 

15 083 

15 650 

2 068 

 335 

N/A 

N/A 

N/A 

15 650 

16 160 

2 068 

 335 

 784 

 381 

N/A 

N/A 

N/A 

16 160 

 784 

 381 

49 223 

(2 851) 

46 372 

35 748 

(3 341) 

32 408 

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. 

The  significant  increase  compared  to  the  previous  year-end  is  caused  primarily  by  the  RRF  (NGEU) 
instrument which began in 2021 and where payables outstanding at 31 December 2021 totalled EUR 19.1 
billion. 

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 2021 totalled EUR 10.4 billion. A part of this amount (EUR 2.1 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’.  

Overall,  payables  increased  by  EUR  14  billion  primarily  due  to  the  starting  of  the  RRF  (NGEU)  in  2021. 
This was partially offset by a decrease in amounts payable concerning ERDF, mainly caused by the lower 
amount  of  cost  claims  that  were  received  towards  the  end  of  2021  compared  to  the  situation  of  the 
previous year. 

The  increase  in  sundry  payables  is  mainly  due  to  provisional  payments  received  from  fined  companies 
which are to be repaid to the companies after the year end.  

Requests for pre-financing 

In addition to the above amounts, at the end of 2021, EUR 0.7 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. 

95 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

2.13.  ACCRUED CHARGES AND DEFERRED INCOME 

Accrued charges 
Deferred income 
Other 
Total 

The split of accrued charges is as follows: 

RRF (NGEU) 
EAGF 
EAFRD and other rural development instruments 
ERDF and CF 
ESF 
Other 
Total 

31.12.2021 
77 819 
 126 
 123 
78 068 

31.12.2021 
8 263 
25 241 
19 245 
10 710 
3 499 
10 859 
77 819 

EUR million 
31.12.2020 
64 383 
 128 
 74 
64 584 

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

Accrued  charges  refer  to  recognised  expenses  for  which  the  Union  has  still  to  receive  cost  claims.  For 
cohesion  policy,  the  increase  for  ERDF  &  CF  accrued  charges  relates  mainly  to  the  implentation  of  the 
2014-2020 period. The RRF (NGEU) instrument only began activities in 2021 and is the main reason for 
the large increase in accruals since the previous year-end. 

96 

 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Note 
2.14.1 
2.14.2 
2.14.3 

31.12.2021 
– 
– 
1 325 
1 325 

EUR million 
31.12.2020 
 496 
3 043 
1 523 
5 062 

NET ASSETS 

2.14.  RESERVES 

Fair value reserve 
Guarantee Fund reserve 
Other reserves 
Total 

2.14.1.  Fair value reserve 

In accordance with the previous version of EAR 11, applicable until 31 December 2020, the adjustment to 
fair value of available for sale financial assets was accounted for through the fair value reserve. As of 1 
January  2021,  the  available  for  sale  financial  assets  were  reclassified  to  financial  assets  at  FVSD  –  see 
note 2.4. The related fair value reserve is therefore released to Accumulated Result – see note 1. 

2.14.2.  Guarantee Fund reserve 

Until 31 December 2020 the 9% target amount of the outstanding amounts guaranteed by the EU budget 
under  the  EIB  external  lending  mandate  was  recognised  as  the  Guarantee  Fund  reserve  in  net  assets. 
Following the revision of EAR 11, the EIB external lending mandate guarantee, covered by the Guarantee 
Fund  for  external  actions,  is  accounted  for  as  a  financial  guarantee  liability.  The  liability  for  future 
guarantee calls under the EIB external lending mandate was therefore recognised on the balance sheet – 
see note 2.11.2 – and the Guarantee Fund reserve was released to accumulated result – see note 1. 

2.14.3.  Other reserves 

The amount relates primarily to the reserves of the ECSC in Liquidation (EUR 997 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 
in Liquidation. 

2.15.  AMOUNTS TO BE CALLED FROM MEMBER STATES 

Amounts to be called from Member States at 31.12.2020 
Impact of revised EAR 11 (see Note 1) 
Balance as at 01.01.2021 
2020 budget result credited to Member States 
Movement in Guarantee Fund reserve 
Remeasurements in employee benefits liabilities 
Other 
Economic result of the year 
Total amounts to be called from Member States at 31.12.2021 

EUR million 

38 480 
(1 719) 
36 761 
1 769 
– 
3 257 
 (262) 
42 100 
83 624 

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

97 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

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

The  considerable  increase  of  the  amounts  to  be  called  from  Member  States  is  primarily  due  to  the 
borrowings in relation to non-repayable support taken out under NGEU in 2021. 

98 

 
 
 
Annual accounts of the European Union 2021 

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 115 955 million for 2021 (2020: EUR 125 393 million) and is the most 
significant  of  the  four  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. it  funds the part of the budget 
that is not covered by other sources of income. The decrease of GNI revenue between 2021 and 2020 is 
due to both the introduction of a new own resource (based on non-recycled plastic packaging waste) and 
the increase of other revenue.  

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  collection  of 
customs duties has remained at a similar level compared to last year. 

3.3.  VAT RESOURCES 

The VAT own resource is calculated based on Member States’ VAT bases, which are harmonised for this 
purpose in accordance with EU rules. A uniform call rate of 0.30 % applies to each Member State’s total 
amount of VAT receipts collected for all taxable supplies divided by the weighted average VAT rate. The 
VAT base is  capped at 50 % of each  Member State’s GNI. The VAT resource  has remained at a broadly 
similar level compared to last year. 

3.4.  PLASTICS OWN RESOURCES 

A uniform call rate of EUR 0.80 per kilogram applies to the weight of plastic packaging waste generated 
in  each  Member  State  that  is  not  recycled.  The  plastic  packaging  waste  that  is  not  recycled  in  a  given 
year  is  calculated  as  the  difference  between  the  plastic  packaging  waste  generated  and  the  plastic 
packaging  waste  recycled  in  that  year  in  a  Member  State.  Bulgaria,  Czechia,  Estonia,  Greece,  Spain, 
Croatia,  Italy,  Cyprus,  Latvia,  Lithuania,  Hungary,  Malta,  Poland,  Portugal,  Romania,  Slovenia  and 
Slovakia  are  entitled  to  specific  annual  lump  sum  reductions  in  their  respective  plastics  own  resource 
contributions.  This  is  a  new  own  resource  that  was  introduced  in  2021  with  the  entry  into  force  of  the 
new Own Resources Decision 2020/2053. 

REVENUE FROM NON-EXCHANGE TRANSACTIONS: 
TRANSFERS 

3.5.  FINES 

Revenue of EUR 1 990 million (2020: EUR 452 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 

99 

 
Annual accounts of the European Union 2021 

fines (EUR 1 762 million). The biggest cases concern breaches of EU antitrust rules, i.e. fines imposed on 
BMW and the  Volkswagen group (Volkswagen, Audi and  Porsche) for a total amount of EUR 875 million 
for colluding on technical development in the area of nitrogen oxide cleaning, along with fines imposed on 
Nomura,  UBS  and  UniCredit  for  a  total  amount  of  EUR  371  million  for  the  participation  of  a  group  of 
traders in a cartel in the primary and secondary market for European Government Bonds.  

3.6.  RECOVERY OF EXPENSES 

Shared management 
Direct management 
Indirect management 
Total 

2021 
1 682 
 61 
 51 
1 794 

EUR million 
2020 
1 281 
 53 
 21 
1 355 

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 0.7 billion (2020: EUR 
0.4 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 2022. 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. 

3.7.  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. 

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Annual accounts of the European Union 2021 

3.8.  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 

2021 
2 187 
1 367 
1 056 
 199 
 356 
1 245 
 326 
6 737 

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

Contributions  from  Member  States  to  the  Innovation  Fund  are  revenues  relating  mainly  to  the  sale  of 
emission allowances that are to be used to support innovation in low-carbon technologies.  

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 (EUR 460 million) as well 
as financial contributions of third states to Horizon Europe (EUR 379 million) and to ERASMUS+ (EUR 119 
million). 

Member States have contributed EUR 166 million to finance the Facility for Refugees in Turkey. 

The budgetary adjustments mainly represent the budget surplus taken in from the previous year, which 
amounted  to  EUR  1  769  million  (2020:  EUR  3  218  million)  and  was  counterbalanced  by  the  annual 
adjustment  of  VAT  and  GNI,  which  amounted  to  EUR  534  million  (2020:  EUR  3  165  million).  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 
135 million).  

REVENUE FROM EXCHANGE TRANSACTIONS 

3.9.  FINANCIAL REVENUE 

Interest on: 
     Late payments 
     Loans 
     Borrowings 
     Other  
Issue premiums  
Revenue from financial guarantee contracts 
Gains on financial assets or liabilities at FVSD: 
     Non-derivatives  
     Derivatives 
Realised gains on available for sale financial assets 
Dividends 
Other 
Total 

101 

2021 

1 529 
1 160 
 220 
 10 
 2 
 987 

 324 
 815 
– 
 30 
 14 
5 092 

EUR million 
2020 

1 129 
1 167 
– 
 63 
 674 
 258 

- 
 70 
 48 
 22 
 3 
3 434 

 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Interest revenue on late payments stems mainly from fines and own resources contributions due and not 
paid  on  time.  The  main  amounts  concern  the  undervaluation  cases  referred  to  in  note  2.6.1.1 
(EUR 1.4 billion).  

Interest revenue on loans relates mainly to  EFSM loans (EUR 1 billion) which have the highest effective 
interest rate – see note 2.4.1. Interest revenue from borrowings mainly refers to NGEU and SURE and is 
due to the negative effective interest rates for certain transactions.  

The issue premiums have decreased because, in accordance to the revised EAR 11, they are now being 
amortised  over  the  life  of  the  loans  with  the  effective  interest  rate  method  instead  of  being  directly 
recognised in the statement of financial performance, see previous paragraph and note 2.4.1. 

Revenue  from  financial  guarantee  contracts  relates  primarily  to  the  amortization  of  the  financial 
guarantee liabilities. It can be interpreted as a release of the EU from guarantee liabilities for the period 
the EU was standing ready to compensate the holders of the guarantees for their credit losses. Thus, the 
revenue recognition for financial guarantees reflects the passage of time and the guaranteed volume. The 
amortizations apply to both types of guarantees, those which are remunerated as well as those for which 
the EU charges no or nominal remuneration (see note 2.11.2). Out of the remunerated guarantees, the 
most significant in the EFSI guarantee provided to the EIB for the Infrastructure and Innovation Window 
(‘IIW’) debt portfolio (see note 4.1.1). In 2021, the revenue earned by the EFSI guarantee in relation to 
the IIW debt portfolio amounted to EUR 320 million. 

The  revenue  related  to  financial  guarantee  liabilities  of  EUR  987  is  off-set  by  impairment  losses  for 
financial guarantee  liabilities amounting to EUR  947  million relating to  guarantee calls net of recoveries 
(EUR 276 million) and unrealized impairment losses of EUR 671 million (see note  3.15). In addition, the 
EC  has  subsidized  financial  guarantee  programmes  (EUR  233  million)  by  charging  no  or  below  market 
rate guarantee premiums (note 3.15). In total, the net result from financial guarantee programmes is a 
deficit of EUR 193 million. 

3.10.  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 

2021 
 689 
 299 
 53 
 169 
 1 
 2 
 284 
1 497 

EUR million 
2020 
 640 
 370 
 48 
 38 
 34 
 5 
 269 
1 404 

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. 

102 

 
 
 
 
 
 
 
 
 
 
 
 
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EXPENSES 

3.11.  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 

2021 
40 829 

15 451 

46 932 
16 727 
4 835 

EUR million 
2020 
40 461 

14 467 

41 118 
13 677 
2 701 

124 774 

112 425 

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.  The  increase  is  also  a  result  of 
higher co-financing rates applied for the accounting year 2020-2021 in the context of the CRII+ package. 

Other expenses mainly include: Brexit Adjustment Reserve (EUR 1.7 billion), Asylum and Migration (EUR 
0.6  billion),  Fund  for  European  Aid  to  the  Most  Deprived  (EUR  0.6  billion),  Internal  Security  (EUR  0.4 
billion), European Union Solidarity Fund (EUR 0.8 billion) and the European Maritime and Fisheries Fund 
(EUR 0.7 billion).  

3.12.  DIRECT MANAGEMENT 

Implemented by the Commission 
  of which RRF (NGEU) 
Implemented by EU Executive Agencies 
Implemented by Trust funds 
Total 

2021 
48 265 
42 940 
14 232 
 503 
63 000 

EUR million 
2020 
11 429 
– 
10 029 
 636 
22 094 

Apart from the RRF expenses (EUR 43 billion) the rest of the amounts mainly concern the implementation 
of  Research  Policy  (EUR 8.1  billion),  Development  Co-operation  Instrument  (EUR 1.1 billion),  European 
Neighbourhood  Policy  (EUR 1.3  billion)  and  the  Connecting  Europe  Facility,  the  common  infrastructure 
fund to deploy smart networks in the area of transport, energy and telecommunications (EUR 2.1 billion). 

The  increase  in  direct  management  expenses  implemented  by  the  EU  Executive  Agencies  stems  mainly 
from  the  transfer  of  activities  from  Commission  services  to  the  executive  agencies  in  the  area  of 
research. 

3.13.  INDIRECT MANAGEMENT 

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

2021 
3 154 
 890 
3 622 
3 225 
10 891 

EUR million 
2020 
3 530 
 559 
3 619 
3 257 
10 965 

Under  indirect  management  expenses,  EUR 3.9  billion  relates  to  external  actions  (mainly  the  areas  of  
pre-accession, humanitarian aid, international co-operation and neighbourhood). A further EUR 4.7 billion 
is  related  to  increasing  Europe's  competitiveness  (in  areas  such  as  research,  space  programmes  and 
education).

103 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

3.14.  STAFF AND PENSION COSTS 

Staff costs 
Pension costs 
Total 

2021 
7 377 
5 040 
12 417 

EUR million 
2020 
7 028 
4 967 
11 995 

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 at EUR 2.2 billion.  

3.15.  FINANCE COSTS 

Interest expenses: 
     Borrowings 
     Loans 
     Finance leases 
     Other 
Issue costs 
Financial guarantee contracts - subsidised remuneration 
Net impairment losses on: 
     Financial guarantee contracts 
     Loans and receivables 
     Available for sale financial assets 
Loss on financial assets or liabilities at FVSD: 
     Non-derivatives 
     Derivatives 
Realised loss on available for sale financial assets 
Other  
Total 

2021 

1 209 
 146 
 56 
 103 
– 
 233 

 947 
1 244 
– 

 210 
 40 
– 
 13 
4 201 

EUR million 
2020 

1 160 
– 
 62 
 24 
 672 
– 

 70 
 110 
 41 

– 
 21 
 5 
 22 
2 188 

The amount of interest expense on borrowings corresponds mainly to EFSM transactions (EUR 1 billion), 
in  line  with  the  interest  income  from  loans  (back-to-back  transactions).  Interest  expenses  from  loans 
mainly refer to SURE and are due to the negative effective interest rates for certain transactions.  

The  issue  costs  have  decreased  because,  in  accordance  to  the  revised  EAR  11,  they  are  now  being 
amortised over the life of the borrowings with the effective interest rate method instead of being directly 
recognised in the statement of financial performance, see note 2.4.1.  

For more details on expenses related to financial guarantees, see note 3.9. 

104 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

3.16.  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 

2021 
2 105 
 583 
1 205 
 591 
 171 
 447 
 660 
5 762 

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

The aggregate amount of research and development expenditure recognised as an expense during 2021 
is as follows: 

Research costs 
Non-capitalised development costs 
Total 

2021 
 401 
 122 
 523 

EUR million 
2020 
 402 
 118 
 520 

105 

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

Annual accounts of the European Union 2021 

Natural 
Resources and 
Environment 
– 
– 
– 
– 
– 
 893 
– 
 46 

Migration and 
Border 
Management 
– 
– 
– 
– 
– 
 8 
– 
– 

Resilience, 
Security and 
Defence 
– 
– 
– 
– 
– 
 0 
– 
– 

GNI resources 
Traditional own resources 
VAT 
New Own Resources 
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 

Cohesion and 
Values 

– 
– 
– 
– 
– 
 809 
– 
 132 

 941 

 45 
 (16) 

 29 

 970 

Single Market, 
Innovation and 
Digital 
– 
– 
– 
– 
– 
 24 
– 
 384 

 408 

1 913 
 257 

2 170 

2 578 

– 

– 

– 
– 
– 

(46 932) 
(16 727) 
 24 

(12 207) 

(45 753) 

(2 374) 

 (703) 

 (243) 

 37 

 573 
 (453) 
 (771) 
(1 609) 
(17 083) 
(14 505) 

(3 301) 
 (9) 
 (43) 
 (134) 
(113 541) 
(112 571) 

– 

– 

(40 829) 

(15 451) 

 939 

 0 
 (18) 

 (17) 

 922 

– 
– 
 (710) 

 (662) 

 (77) 

 113 

 73 
 (1) 
 (24) 
 (251) 
(57 820) 
(56 899) 

Neighbourhood 
and the World 

– 
– 
– 
– 
– 
 27 
– 
 41 

 68 

 217 
 8 

 225 

 293 

– 

– 

– 
– 
 (233) 

European 
Public 
Administration 
– 
– 
– 
– 
– 
 0 
– 
1 559 

Not assigned 
to MFF 
heading* 
115 955 
20 590 
18 340 
5 831 
1 990 
 34 
1 122 
4 574 

EUR million 
Total 

115 955 
20 590 
18 340 
5 831 
1 990 
1 794 
1 122 
6 737 

1 559 

168 434 

172 357 

 1 
 329 

 330 

2 916 
 941 

3 857 

5 092 
1 497 

6 589 

1 889 

172 291 

178 946 

– 

– 

– 
– 
– 

– 

– 

– 
– 
(2 979) 

(40 829) 

(15 451) 

(46 932) 
(16 727) 
(4 835) 

 8 

– 
 0 

 0 

 8 

– 

– 

– 
– 
 (837) 

 0 

 0 
 (5) 

 (5) 

 (5) 

– 

– 

– 
– 
 (101) 

 (289) 

 (244) 

(3 954) 

 (24) 

 132 

(63 000) 

 (680) 

 (359) 

 (15) 

 (312) 

1 365 

(3 154) 

 (171) 

 (213) 

 (7) 
 (0) 
 (0) 
 (5) 
(1 990) 
(1 982) 

 (103) 
 (1) 
 (0) 
 (52) 
(1 071) 
(1 076) 

(4 025) 

 (460) 
 (136) 
 (445) 
 (240) 
(9 507) 
(9 215) 

 (3) 

 (7) 

(4 512) 

 (0) 
(10 487) 
 (95) 
(3 069) 
(13 990) 
(12 101) 

 0 
(1 330) 
(2 823) 
 (401) 
(6 042) 
166 249 

(3 225) 
(12 417) 
(4 201) 
(5 762) 
(221 046) 
(42 100) 

* ‘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.  

106 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

4. 

CONTINGENT LIABILITIES AND ASSETS 

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 guarantees given 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 2.4.2.1), would be financed, should they fall due, by the EU budget 
(and thus the EU Member States) in the years to come. 

4.1.  Guarantees given by the EU budget 

4.1.1.  Guarantees given under the EU budgetary guarantee programmes (nominal) 

EIB external lending mandate guarantees 
EFSI guarantee 
EFSD guarantee 
NDICI external action guarantee 
Total 

31.12.2021 

Guarantees given 

Ceiling 
33 026 
25 826 
1 391 
 200 
60 442 

Signed  Disbursed 
20 835 
33 026 
20 358 
24 730 
 535 
 611 
 200 
 200 
41 928 
58 566 

EUR million 

Assets 
provisioned* 

2 700 
8 602 
 796 
– 
12 098 

* The EUR 2.7 bn of assets provisioned for the EIB external lending mandate guarantee also cover borrowings under MFA and Euratom 

(see note 4.1.2). 

EIB external lending mandate guarantees 
EFSI guarantee 
EFSD guarantee 
Total 

31.12.2020 

Guarantees given 

Ceiling 
35 372 
25 543 
1 370 
62 285 

Signed  Disbursed 
20 050 
32 530 
18 590 
23 831 
 438 
 34 
38 673 
56 799 

EUR million 

Assets 
provisioned* 

2 813 
8 028 
 804 
11 645 

* The EUR 2.8 bn of assets provisioned for the EIB external lending mandate guarantee also cover borrowings under MFA and Euratom 

(see note 4.1.2)  

The above tables show 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 16 638 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 2021,  operations  authorised  to  be  signed  but  not  yet  signed  (EUR 1 876 million)  must  be 
included.  For  the  financial  year  2020,  the  amounts  are  presented  net of  financial  provisions  or  financial 
liabilities recognised for those programmes. 

Budgetary guarantee programmes are backed by provisions gradually made from the budget and kept in 
the  Common  Provisioning  Fund  (‘CPF’)  as  a  liquidity  cushion  to  cover  future  guarantee  calls  (see  note 
2.4.2.1).  The  amounts  provisioned  amounted  to  EUR  12  098  million  at  31  December  2021.  Please  see 
note 6.2 for the measures put in place to ensure that the provisioning is sufficent to cover the guarantee 
calls  in  the  medium  term.  Any  losses  incurred  under  the  budgetary  guarantee  programmes,  above  the 
provisioning set aside, would need in any case to be covered by future budgets.  

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  2021  the  amount  of  loans  outstanding  and  covered  by  the  EU  guarantee 
totalled EUR 20 835 million. The EU budget guarantees: 

107 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

 

 

EUR 20 268 million via the Guarantee Fund for external actions compartment of the CPF; and 

EUR 567 million directly for loans granted to Member States before accession. 

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  2014-2021).  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. 

With  Decision  (EU)  2018/412,  a  private  sector  lending  mandate  for  projects  directed  to  the  long  term 
economic  resilience  of  refugees,  migrants,  host  and  transit  communities  under  the  EIB  Resilience 
Initiative (‘ERI’) was set-up. The Union budget is remunerated for the risk taken in relation to guarantees 
granted  for  EIB  financing  operations  under  the  ERI  Private  Mandate,  which  explains  the  premium 
receivable for the ELM guarantee, which is otherwise a non-remunerated guarantee (see note 2.11.2). 

The period authorised for the signature of the new operations under the ELM 2014-2020 expired in 2021, 
thus the available ceiling under the guarantee has lapsed for any unused amount. The new EIB mandate 
is foreseen to be covered by the External Action Guarantee set up by the NDICI Regulation (see below), 
however, it has not yet been signed. 

EU guarantee payments are made from the Guarantee Fund for external actions compartment of the CPF: 
during 2021, EUR 93 million of guarantee calls have been paid out (2020: EUR 52 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  the 
'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 an 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  and  the  SMEW  debt  portfolio  (see  note  2.11.2)  and  as  a derivative 
(financial  asset  or  liability  at  fair  value  through  surplus  or  deficit)  for  both  equity  portfolios  (see  note 
2.4.2.2).  The  EFSI  guarantee  given  includes  operations  of  the  COSME,  H2020,  CCS  LGF  and  EaSI 
programmes for the part covered by the EFSI EU guarantee under the SMEW debt portfolio.  

During 2021, no guarantee calls have been paid out from the EFSI Guarantee Fund compartment of the 
CPF (2020: EUR 1 million). 

108 

 
European Fund for Sustainable Development (EFSD) 

Annual accounts of the European Union 2021 

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 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  CPF  –  see 
note 2.4.2.1. As at 31 December 2021, sixteen EFSD guarantee agreements were effective with the total 
guarantee cover limit amounting at EUR 1 391 million, while the operations signed by the counterparties 
and guaranteed by the EU under those agreements totalled EUR 611 million. 

NDICI external action guarantee 

Regulation  (EU)  2021/947  of  the  European  Parliament  and  of  the  Council  9  June  2021,  established  the 
Neighbourhood,  Development  and  International  Cooperation  Instrument  –  Global  Europe  (the 
‘Instrument’),  including  the  European  Fund  for  Sustainable  Development  Plus  (the  ‘EFSD+’)  and  the 
External Action Guarantee, for the period of the 2021-2027 MFF. The NDICI Regulation aims to increase 
the  coherence  and  effectiveness  of  the  EU’s  external  actions,  thus  improving  the  implementation  of  the 
different external action policies. 

The External Action Guarantee supports the EFSD+ operations covered by budgetary guarantees, macro-
financial assistance and loans to third countries.  

As  at  31  December  2021  one  budgetary  guarantee  agreement  was  signed,  for  a  total  ceiling  of 
EUR 200 million. 

InvestEU guarantee 

The  InvestEU  Regulation  (Regulation  (EU)  2021/523  of  the  European  Parliament  and  of  the  Council  of 
24 March  2021  establishing  the  InvestEU  Programme  and  amending  Regulation  (EU)  2015/1017) 
provides  for  an  EU  guarantee  up  to  EUR  26.2  billion  that  backs  the  finaciang  and  investments  of 
implementing partners that contribute to objectives of the Union’s internal policies in four policy windows: 
Sustainable  infrastructure,  Research,  Innovation  and  digitalisation,  Small  and  medium-sized  companies, 
and  Social  investment  and  skills.  The  EU  is  gradually  setting  money  aside  (‘provisioning’)  from  the 
InvestEU  budget  to  create  a  capital  buffer  for  guarantee  calls.  The  InvestEU  Regulation  has  set  the 
provisioning  rate  at  40%  of  the  guarantee  for  the  InvestEU  EU  compartment.  Currently  the  amount  is 
EUR 300 million, invested in the CPF (see note 2.4.2.1). The first guarantee agreement under InvestEU 
was signed in March 2022 with the EIB Group providing for an EU guarantee up to the ceiling of EUR 19,6 
billion. InvestEU Regulation also allows for the contributions from Member States (under Member States 
compartment) and from third countries. 

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  EFSI,  EFSD  and  the  EIB  external  lending  mandate 
operations  approved  by  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  2021  this  had  changed  to  EUR  27.6  billion.  The  UK  share  of  this  contingent  liability  at  31 
December  2021  is  thus  EUR  3.4  billion.  As  stated  above  however,  any  default  on  these  loans  is  first 
covered by the Guarantee Fund for external actions compartment of the CPF and amounts would only be 
called from the UK if the UK provisioning for this fund, of EUR 338 million at 31 December 2021, 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  2021  this  had 
changed  to  EUR  18.8  billion.  The  UK  share  of  this  contingent  liability  at  31  December  2021  is  thus 
EUR 2.3 billion.  Any  guarantee  calls  under  EFSI  are  first  covered  by  the  EFSI  guarantee  fund 
compartment  of  the  CPF  and  amounts  would  only  be  called  from  the  UK  if  the  UK  provisioning  for  this 
fund, of EUR 1.1 billion at 31 December 2021, was not sufficient. 

109 

 
Annual accounts of the European Union 2021 

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 UK share of the payments made in 2021 for the operations approved on or after the withdrawal date 
and up to 31 December 2021 amounted to EUR 47 million (EUR 35 million for EFSI and EUR 12 million for 
ELM), reducing correspondingly the UK provisioning. The amount due to the UK in 2022, EUR 163 million 
(see note 2.6.1.2) results from the UK share of the recoveries and net revenues collected in 2021 (EUR 
70 million), from the excess in provisioning (EUR 92 million) as well as from the impact of the definitive 
UK share calculation on the amounts due in 2021 (‘catch-up’). 

4.1.2.  Guarantees given to cover NGEU and financial assistance borrowings 

NGEU 
SURE 
EFSM 
BOP 
MFA 
Euratom 
Total 

31.12.2021 
91 002 
89 702 
47 270 
 201 
7 466 
 350 
235 991 

EUR million 
31.12.2020 
- 
39 503 
47 396 
 201 
5 813 
 279 
93 193 

The  borrowing  amounts  in  this  table  are  the  nominal  amounts  and  accrued  interests.  The  EU  budget 
guarantees  the  borrowings  the  Commission  issues  for  the  NGEU  instrument  and  financial  assistance 
programmes. Out of the NGEU borrowings outstanding at 31 December 2021, EUR 18 billion have been 
disbursed  as  RRF  loans,  EUR  46.4  billion  as  RRF  non-repayable  support  and  EUR  7.2  billion  as 
contributions to MFF programmes, while the remaining EUR 19.4 billion has not yet been disbursed and 
remains in cash and cash equivalents (see note 2.8). 

Should  there  be  a  default  on  the  loans  given  out  with  these  borrowings,  the  EU  budget,  would  have  to 
eventually bear the full cost of the amount defaulted: 

  NGEU borrowings and borrowings related to EFSM, BOP and Euratom loans to Member States, are 

guaranteed solely by the EU budget; 

  Borrowings related to SURE are guaranteed by the EU budget and underpinned by Member States 
guarantees  of  EUR  25  billion  (25%  of  the  maximum  financial  assistance  amount  of  EUR  100 
billion); and 

  MFA  and  Euratom  borrowings  for  loans  to  third  countries  are  firstly  covered  by  the  Guarantee 

Fund for external actions compartment of the CPF (see note 2.4.2) and then by the EU budget.  

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 compartment of the CPF 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  2021  is  EUR  53.0  billion  –  the  UK’s  share  of  this  is 
EUR 6.6 billion. 

110 

 
 
 
 
 
 
4.1.3.  Guarantees given under EU financial instrument programmes (nominal) 

Annual accounts of the European Union 2021 

Horizon 2020 
Connecting Europe Facility 
COSME 
Other 
Total 

Horizon 2020 
Connecting Europe Facility 
Risk Sharing Finance Facility 
Other 
Total 

EUR million 
31.12.2021 
2 590 
 568 
 782 
 653 
4 593 

EUR million 
31.12.2020 
1 860 
 579 
 37 
 49 
2 524 

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 amounts as at 31 December 2021 present the outstanding nominal amounts of the guarantees, while 
the  contingent  liabilities  as  at  31  December  2020  are  shown  net  of  financial  provisions  and  financial 
liabilities recognised for these instruments – see notes 2.10 and 2.11.2. 

The COSME Loan Guarantee Facility (LGF) consists primarily of capped guarantees for portfolios of higher 
risk  debt  financing  (mainly  loans)  offered  by  financial  intermediaries  to  SMEs.  The  COSME  LGF  is 
implemented by the EIF on behalf of the EU. 

For more details on Horizon 2020 and the Connecting Europe Facility see also note 2.4.2.1. 

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 from the UK other than its share in the budgetary RAL as outlined under Article 140 of 
the WA – see note 2.6.1.2. 

4.2.  Contingent liabilities relating to legal cases 

4.2.1. 

Legal cases in the area of fines 

At  31  December  2021  the  contingent  liabilities  relating  to  fines  amounted  to  EUR  2  111  million  (2020: 
EUR 2 985 million). 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). 

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4.2.2.  Other legal cases 

Annual accounts of the European Union 2021 

Agriculture 
Cohesion 
Other 
Total 

Agriculture 

31.12.2021 
 79 
 210 
1 153 
1 443 

EUR million 
31.12.2020 
 66 
 341 
2 169 
2 576 

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  considerable  decrease  from  the  previous  year-end  relates  mainly  to  a 
damages  claim  against  the  Commission  for  a  merger  prohibition  decision  that  was  eventually  dismissed 
by the Court. 

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 the 
financial  interests  of  the  Union,  provided  that  the  facts  forming  the  subject  matter  of  those  cases 
occurred no later than 31 December 2020. The estimated maximum UK exposure here is EUR 179 million 
(2020: 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. 

4.3.  CONTINGENT ASSETS 

Guarantees received: 
     Performance guarantees 
     Other guarantees 
Other contingent assets 
Total 

31.12.2021 

EUR million 
31.12.2020 

 287 
 8 
 98 
 393 

 318 
 8 
 58 
 384 

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

112 

 
 
 
 
 
 
 
 
 
  
 
 
Annual accounts of the European Union 2021 

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 2021. 

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. 

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 86 
of  the  Common  Provisions  Regulation  (CPR)  (Regulation  (EU)  2021/1060)  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  2021  and 
31 December  2027.  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 note 5.2 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,  which  are  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 by 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 2021 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 
Significant legal commitments 
Total 

Note 
5.1 
5.2 

EUR million 
31.12.2021  31.12.2020 
249 309 
14 481 
263 790 

266 526 
135 181 
401 707 

5.1.  OUTSTANDING BUDGETARY COMMITMENTS NOT YET 

EXPENSED 

Outstanding budgetary commitments not yet expensed 

31.12.2021 
266 526 

EUR million 
31.12.2020 
249 309 

The  amount  disclosed  above  is  the  budgetary  RAL  (‘Reste  à  Liquider’)  of  EUR 341  634  million  (see 
table 6.4  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.  This  is  the  normal  consequence  of  the  existence  of  multi-
annual programmes. 

113 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

that  outstanding  pre-financing  advances  at  31 December 2021 

It  should  be  noted 
totalled 
EUR 93.4 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.  SIGNIFICANT LEGAL COMMITMENTS 

RRF (NGEU) non-repayable support commitments 
ITER 
EAFRD* 
Space Programmes 
Fisheries agreements 
HorizonEU 
EURATOM 
Brexit Adjustment Reserve 
Connecting Europe Facility 
Operating lease commitments 
Other contractual commitments 
Total 

31.12.2021 
99 530 
6 121 
17 662 
4 189 
 412 
 382 
 445 
3 072 
– 
2 492 
 876 
135 181 

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

*The  financial  framework  for  the  EAFRD  has  been  extended  to  cover  the  period  up  to  2022  (Regulation  (EU) 

2020/2220). 

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  and  paid  in  future 
years. 

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: 

NGEU (RRF) non-repayable support commitments  

The  RRF  is  a  key  programme  of  NGEU,  the  EU  Recovery  Instrument.  It  was  established  by  Regulation 
(EU) 2021/241 of the European Parliament and of the Council of 12 February 2021. It finances reforms 
and  investments  in  Member  States  from  the  start  of  the  coronavirus  pandemic  in  February  2020  until 
2026. The amount disclosed here refers to the part of the legal commitments for non-repayable support 
of the RRF which at year-end 2021 was not covered by budgetary commitments. Article 23 of Regulation 
(EU) 2021/241 authorises the use of annual instalments.  

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  amount  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 together with various other countries. 

114 

 
 
 
 
 
 
EAFRD 

Annual accounts of the European Union 2021 

These  are  legal  obligations  that  the  EU  has  committed  to  pay  when  adopting  the  EAFRD  programme 
which  covers  the  period  2014-2022  according  to  Regulation  (EU)  2020/2220.  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. 

Space Programmes  

The space programme includes the following components : Galileo, EGNOS, Copernicus, Govsatcom and 
SSA.  The  most  significant  are  Galileo,  which  is  developing  the  European  Global  Navigation  Satellite 
System,  and  Copernicus,  which  is  related  to  the  European  Earth  observation.  These  commitments  are 
made  for  the  period  until  2027.  Based  on  Regulation  (EU)  2021/696  of  the  EP  and  Council  of  28  April 
2021  (OJ  L  170/69  of  12 May  2021),  the  Commission  signed  delegation  agreements  with  the  European 
Space  Agency  (ESA),  EUMETSAT,  Mercator  and  the  European  Centre  for  Medium  Range  weather 
forecasts. Article 11.6 of Regulation (EU) 2021/696 authorises the use of annual instalments. 

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. 

Horizon Europe 

These are amounts committed to the Horizon Europe programme for upstream and downstream activities 
for  the  various  space  components.  These  commitments  are  made  for  the  period  until  2027.  Based  on 
Regulation (EU) 2021/695 of the EP and of the Council of 28 April 2021 (OJ L 170/1 of 12 May 2021), the 
Commission signed a delegation agreement with ESA and another one with EU Space Programme Agency 
(EUSPA). Article 12.8 of Regulation (EU) 2021/695 authorises the use of annual instalments. 

EURATOM 

EUROfusion  (the  European  Consortium  for  Development  of  Fusion  Energy)  is  a  named  beneficiary 
consortium of EU Laboratories and institutes whose mission is to pave the way for fusion power reactors. 
To do so, the consortium funds the research of its 30 members on the basis of the ‘European Roadmap to 
the Realisation of Fusion Energy’ as a joint programme within Euratom Co-funded European Partnership. 
The legal basis is the Council Regulation (Euratom) 2021/765 of 10 May 2021 establishing the Research 
and Training Programme of the European Atomic Energy Community (Euratom) for the period 2021-2025 
complementing Horizon Europe, which foresees the use of the annual instalment in its Article 4. 

Brexit Adjustment Reserve (BAR) 

The  Brexit  Adjustment  Reserve  (BAR)  aims  to  counter  the  economic  and  social  consequences  of  the 
United  Kingdom's  withdrawal  from  the  European  Union  (EU)  in  February  2020.  It  was  established  by 
Regulation  (EU)  2021/1755  of  the  European  Parliament  and  of  the  Council  of  6  October  2021.  The 
amount  disclosed  represents  the  legal  commitments  still  to  be  implemented  as  part  of  the  measures 
supported  by  the  BAR.  Only  the  part  of  the  legal  commitments  not  yet  covered  by  budgetary 
commitments is disclosed here. 

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 December 2025 for CEF Energy. The legal basis of these commitments is 
Regulation  (EU)  No  1316/2013  of  the  EP  and  of  the  Council  of  11  December  2013  establishing  the 
Connecting  Europe  Facility,  amending  Regulation  (EU)  No  913/2010  and  repealing  Regulations  (EC)  No 
680/2007 and (EC) No 67/2010 Text with EEA relevance (OJ L 348, 20 December 2013) which foresees 
the use of the annual instalment in its Article 19. At year-end 2021, the legal commitments are entirely 
covered by budgetary commitments. 

115 

 
 
Operating lease commitments 

Annual accounts of the European Union 2021 

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 
 414 
 14 
 428 

1- 5 years 
 953 
 27 
 980 

> 5 years 
1 074 
 9 
1 083 

EUR million 

Total 
2 442 
 50 
2 492 

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 726/2004, 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 383 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 393 million). 

116 

 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

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 

NGEU, 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  the  Common  Provisioning  Fund  for  budgetary  guarantees,  and  in  the  ECSC  in 

liquidation;  

 

 

Financial instruments financed by the EU budget; and 

 EU budgetary guarantee programmes. 

With  the  start  of  NGEU  in  2021,  the  Commission  appointed  a  Chief  Risk  Officer,  established  an 
appropriate governance structure and adopted a risk policy covering NGEU activities. 

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 (such as equity 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; and 

  Other  price  risk  is  the  risk  that  the  fair  value  or  future  cash  flows  of  a  financial  instrument  will 
fluctuate because of changes in market prices (other than those arising from interest rate risk or 
currency  risk),  whether  those  changes  are  caused  by  factors  specific  to  the  individual  financial 
instrument or its issuer, or factors affecting all similar financial instruments traded in the market. 

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 an EU entity will encounter difficulty in meeting obligations associated with 
financial liabilities that are settled by delivering cash or another financial asset. 

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  other  than  financial  guarantee  contract  receivables  when 
classified  to  financial  assets  at  FVSD,  borrowings,  financial  guarantee  contracts  and  other  financial 
liabilities  measured  at  amortized  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 

117 

 
Annual accounts of the European Union 2021 

procedure  manuals  covering  specific  areas  such  as  borrowings  and  loans  have  been  developed  and  are 
used  by  the  relevant  operational  units.  Lending  operations  other  than  NGEU  are  financed  by  ’back-to-
back‘ borrowings, which thus do not generate open interest rate or currency positions.  

Loans  provided  under  NGEU  do  not  follow  a  back-to-back  approach  as  is  done  for  the  other  financial 
assistance  instruments.  Instead,  a  diversified  and  pooled  funding  strategy  has  been  developed  for  the 
NGEU which combines a wide range of funding instruments. The diversified pooled strategy has required 
the  development  and  implementation  of  efficient  risk  management  guidelines  and  procedures  for  the 
NGEU instrument that actively address the related risks on a daily basis. 

Treasury 

The  rules  and  principles  for  the  management  of  the  Commission's  treasury  operations  are  laid  down  in 
the  Council  Regulation  (EU,  Euratom)  No  609/2014  (as  amended  by  Council  Regulation  (EU,  Euratom) 
2016/804) and in the Financial Regulation. 

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

  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; and 

 

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

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Annual accounts of the European Union 2021 

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

Financial guarantees received 

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. 

EU budgetary guarantee programmes 

The Financial Regulation has enshrined, in its Title X, several safeguards to protect the EU budget against 
the  financial  risks  created  through  the  use  of  budgetary  guarantees.  They  can  be  grouped  in  four  main 
categories: 

1.  Measures to limit the amount of the contingent liabilities 

First,  the  size  of  the  EU  guarantee  is  as  a  rule  capped  in  a  clearly  defined  manner.  The  Financial 
Regulation  states  that  the  financial  liability  and  the  aggregate  net  payments  from  the  budget  cannot 
exceed the size of the budgetary guarantee, authorised by its basic act. The contingent liability generated 
by a budgetary guarantee can only exceed the financial assets provided to cover the EU financial liability 
if this is provided for in the underlying basic act and under the specific conditions it sets.  

Secondly,  the  desired  risk  profile  of  the  operations/financial  products  guaranteed  by  the  EU  is 
determined, as far as possible, ex-ante, i.e. at the time of the signature of the guarantee agreements. 

2.  Measures concerning the selection of implementing partners 

Budgetary guarantee programmes are implemented with reliable, pillar-assessed, partners.  This ensures 
the reliability of, inter alia, the accounting, financial and risk management systems of these implementing 
partners (IPs). Furthermore, these IPs are to commit own resources which leads to a further alignment of 
interests with the Union. 

3.  Measures to ensure adequate ex-ante budgetary capacity to absorb guarantee calls 

Budgetary  guarantee  programmes  are  backed  by  provisions  that  are  safely  kept  in  the  CPF.  The 
provisioning rate is set, in the basic act of each program, at such a level as to allow the programming of 
budgetary  appropriations  to  constitute  a  provision  that  would  allow  the  absorption  of  losses  without 
budgetary  disruption.  The  provisioning  is  hence  sufficient  to  cope  with  the  expected  and,  to  a  certain 
level, also the unexpected losses of these budgetary guarantees. 

Subsequently, the  Commission will ensure (annually) that the amount of provisioning complies with the 
provisioning rate as defined in the basic act and is in line with the Financial Regulation principles and with 
the financial programming. 

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Annual accounts of the European Union 2021 

4.  Measures to deal with realised losses exceeding the ex-ante estimation 

The  Financial  Regulation  introduces  two  early  warning  thresholds  (i.e.  when  50%  and  30%  of  the 
provisioning  target  remain  available).  Those  warning  thresholds  allow  the  Commission  to  anticipate  a 
potential exhaustion of the provisioning before the termination of the budgetary guarantee and allow the 
Commission to evaluate whether it may exceptionally propose additional provisioning. 

In addition, there is a regular review of the appropriateness of the provisioning rate (at least every three 
years).  This  review  ensures  the  adequacy  of  the  provisioning  rate  against  the  actual  risk  profile  of  the 
outstanding liabilities.  

In  case  additional  provisioning  is  needed  there  are  procedures  in  place  to  ensure  sufficient  liquidity 
(transfers  between  CPF  compartments  and  the  use  of  central  treasury  liquidity)  and  budgetary  space 
(commitment and payment appropriations) is available. 

Furthermore,  a  Steering  Committee  on  Contingent  Liabilities  arising  from  Budgetary  Guarantees  was 
established  under  the  authority  of  the  Commissioner  for  Budget  in  2020.  It  intervenes  in  matters 
covering  budgetary  guarantees  and  financial  assistance  creating  contingent  liabilities  to  the  budget 
generated from the implementation of Title X of the Financial Regulation, including those provisions laid 
down in the Internal Rules on the implementation of the general budget of the Union. This includes the 
risk  management  framework,  relevant  common  horizontal  provisions  of  the  standard  agreements  and 
integrated  reporting  to  establish  corporate  requirements  for  the  sustainable  management  of  contingent 
liabilities. 

Common Provisioning Fund 

By Commission Decision C(2020)1896 of 25 March 2020 on the asset management guidelines of the CPF 
(AMG), the responsibilities and tasks of the CPF financial manager were delegated to the Director General 
of  the  Directorate-General  for  Budget  (DG  BUDG).  The  CPF  is  kept  separate  from  the  other  portfolios 
managed by DG BUDG. The Fund does not exist as a separate legal entity.  

The  CPF  is  managed  according  to  the  asset  management  guidelines.  The  objective  is  to  ensure  the 
necessary  liquidity  to  meet  all  required  outflows,  such  as  guarantee  calls,  fully  and  promptly,  and  to 
provide capital preservation over the investment horizon of the fund, with a high confidence level. 

To  attain  the  general  objective  described  above,  the  financial  manager  of  the  CPF  shall  manage  the 
assets  in  accordance  with  prudential  rules  and  the  principles  of  sound  financial  management  and  in 
accordance  with  the  rules  and  procedures  set  out  by  the  accounting  officer  of  the  Commission.  Written 
procedures manuals covering specific areas, such as treasury management, have been developed and are 
used  by  the  relevant  operating  units.  Financial  and  operational  risks  are  identified  and  evaluated  and 
compliance with internal guidelines and procedures are checked regularly. 

The CPF portfolio shall be constituted so as to ensure a high degree of diversification across eligible asset 
classes, geographical areas, issuers and maturities in order to manage fluctuations in portfolio value. 

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.  

As the sole counterparty for all outstanding currency forwards as of 31 December 2021 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. 

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 2.4.2. 

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 

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Annual accounts of the European Union 2021 

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 
equity instruments or cover 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  the  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 

Currency risk as at 31 December 2021 
Financial instruments exposure of the EU to currency risk at year-end – net position 

Financial assets 
Financial assets at amortized 
cost* 
Financial assets at FVSD 
Non-derivatives 
Derivatives 

Receivables** 
Cash and cash equivalents 

Financial liabilities 
Financial guarantee liability 
Financial liabilities at FVSD 

Total 

USD 

GBP 

31.12.2021 
SEK 

PLN 

Other 

EUR 

Total 

EUR million 

 63 

 18 

– 

– 

 7 

 88 

 176 

 934 
 (646) 
 109 
 85 
 545 

 51 
– 
 98 
 24 

– 
– 
 108 
1 014 
 192  1 121 

(1 047) 
 (1) 
  (1 048) 
 (503) 

 (62) 
 (0) 
– 
– 
 (0) 
 (62) 
 192  1 059 

 23 
– 
 4 
 591 
 618 

 (19) 
– 
 (19) 
 599 

– 
 88 

 75  23 141 
1 474 
7 372 
1 692  41 455 
1 862  73 529 

24 223 
 828 
7 780 
44 860 
77 866 

 (4) 

 (248)  (6 418) 
– 
 (251)  (6 418) 
1 611  67 111 

(7 794) 
 (5) 
(7 798) 
70 068 

*Excluding loans for RRF (NGEU) and for financial assistance. 

**Excluding deferred charges. 

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

Economic result 

2021 
GBP 
 (17) 

EUR million 

PLN 
 (96) 

SEK 
 (54) 

USD 
 46 

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

Economic result 

USD 
 (56) 

2021 
GBP 
 21 

EUR million 

PLN 
 118 

SEK 
 67 

Borrowing and lending activities for NGEU and 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  (EU,  Euratom)  No  609/2014  (as  amended  by  Council 
Regulation  (EU,  Euratom)  2016/804).  They  are  converted  into  EUR  when  they  are  needed  for  the 

121 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

execution of payments. The procedures applied for the management of these funds are laid down by the 
above mentioned 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,  including  USD,  GBP  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, and 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. 

Fines 

All  fines  are  imposed,  paid  or  provisionally  covered  in  EUR  and  therefore  do  not  pose  any  foreign 
currency risk when they are held in the BUFI Fund. 

Budgetary guarantees 

Budgetary  guarantees  as  a  rule  are  extended  with  a  maximum  cap  defined  in  EUR.  However,  some 
underlying operations may be denominated in other currencies (USD or other local currencies).  

Currency risk is part of the considerations taken into account when determining the provisioning needs.  

Common Provisioning Fund 

The  CPF  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.  

The  loans  subrogated  to  the  EU  as  result  of  calls  on  the  fund  following  payment  defaults  by  a  loan 
beneficiary – see note 2.4.1.2 – 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. 

Currency risk as at 31 December 2020 
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 
 115 
 64 
 334  1 353 

– 
 116 
 178 
 310 

 116 
– 
74 493 
 176 
 367 
16 742 
 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 

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

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

73 861  2 333 

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

122 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

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

Economic result 
Net assets 

USD 
 (13) 
 (17) 

2020 
GBP 
 (119) 
 (4) 

EUR million 

DKK 
 (27) 
 (1) 

SEK 
 (49) 
 (1) 

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

Economic result 
Net assets 

6.4.  INTEREST RATE RISK 

2020 
GBP 
 146 
 5 

EUR million 

DKK 
 33 
 2 

SEK 
 60 
 2 

USD 
 16 
 21 

The following table illustrates the interest rate sensitivity of debt securities assuming a possible change in 
interest rates of +/- 100 basis points (1%). 

2021: Financial assets at FVSD 

2020: Available for sale financial assets 

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

EUR million 

Economic result 

 (622) 
 660 
 (479) 
 513 

Sensitivity to interest 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 NGEU and financial assistance 

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

The NGEU instrument does not apply a strict back-to-back approach and, therefore, interest rate risk has 
to be covered by implementation of procedures and mechanisms that mitigate the interest rate risk. The 
underlying principle behind the NGEU diversified funding strategy is to allocate the cost of funding and all 
other NGEU related costs to beneficiaries (for loans) and to the EU budget (for non-repayable support) in 
a  transparent  way.  The  NGEU  programme  is  guided  by  the  principles  of  full  cost  recovery  and  not-for-
profit  operation.  Therefore,  the  EU  passes  on  the  funding  it  obtains  in  the  market  in  the  most  cost-
effective and equitable way based on daily interest calculations. That ensures that Member States bear all 
costs related to the loan incurred by the Union.  

The NGEU holds cash in order to maintain a defined safety buffer as part of a diversified funding strategy 
while  avoiding  any  excess  balances.  The  NGEU  cash  is  kept  at  the  European  Central  Bank.  Based  on  a 
mutual agreement, the outstanding cash balance over EUR 20 billion is subject to negative interest at the 
ECB deposit facility rate, which was -0.5% in 2021. The NGEU cash is kept at the ECB. 

Treasury 

Except  for  the  borrowing  related  to  the  NGEU  programme,  the  Commission  does  not  borrow  money  to 
fund its operational expenditure. Beyond the interest rate exposure on NGEU, interests are calculated on 
balances  held  on  the  different  bank  accounts.  The  Commission  has  therefore  put  in  place  measures  to 

123 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

ensure that interests earned (positive or negative) on its bank accounts regularly reflect 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. Given the current negative interest environment, 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  and  appropriate  ceilings  are  respected 
according  to  the  banks  conditions.  Own  resources  accounts  are  protected  from  any  impact  of  negative 
interest  in  accordance  with  Council  Regulation  (EU,  Euratom)  No  609/2014  (as  amended  by  Council 
Regulation (EU, Euratom) 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 1.75 years.  

Common Provisioning Fund 

The funds in the CPF are invested in a portfolio of money market instruments and long-term bonds with a 
total average portfolio duration of 3.10 years. 

ECSC in liquidation 

The ECSC in liquidation amounts are invested in a portfolio of money market instruments and long-term 
bonds with an average portfolio duration of 3.24 years. 

6.5.  CREDIT RISK 

Credit risk as at 31 December 2021 
Maximum credit risk exposure  

Financial assets 
Loans 
Cash and cash equivalents 
Exchange receivables* 
Financial assets at FVSD - debt securities 
Financial assets at FVSD - derivatives 
Guarantees given  
Financial guarantee contracts 
Total at 31.12.2021 

*excluding deferred charges 

EUR million 
31.12.2021 

163 568 
44 860 
7 780 
19 326 
 828 

55 267 
291 628 

124 

 
 
 
 
 
 
 
Loans: credit quality  

Annual accounts of the European Union 2021 

Credit rating 
Premium and high grade 
Upper medium grade 
Lower medium grade 
Non-investment grade (incl. default) 
Gross carrying amount 
Minus loss allowance 
Net carrying amount  

31.12.2021 

EUR million 

Stage 1   Stage 2 

Stage 3 

POCI 

Total  

10 379 
58 991 
79 672 
8 819 
157 861 
 (10) 
157 851 

– 
– 
– 
5 965 
5 965 
 (299) 
5 665 

– 
– 
– 
 29 
 29 
 (26) 
 3 

10 379 
– 
58 991 
– 
79 672 
– 
 48 
14 860 
 48  163 903 
 (336) 
 48  163 568 

– 

The four risk categories mentioned above are in principle based on the rating categories of external rating 
agencies and correspond to: 

 

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

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

 

Lower medium grade: Moody’s P-3, Baa1 – Baa3, S&P A-3, BBB+ - BBB-; Fitch F3, BBB+ - BBB- 
and equivalent 

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

D and equivalent 

 

The EU  uses these external rating agencies’ 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.  

The  amounts  displayed  above  under  loans  categorised  in  the  non-investment  grade  relate  primarily  to 
financial  assistance  loans  disbursed  by  the  Commission  to  partner  countries  in  financial  difficulties.  All 
loans to Member States are in Stage 1. The POCI loans are the subrogated loans from the EFSI and ELM 
programmes.  

Borrowing and lending activities for NGEU and financial assistance 

Exposure  to  credit  risk  is  managed  by  obtaining  state  guarantees  in  the  case  of  Euratom  (see  note 
2.4.1.1). 

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. 

In case of default of the debtors, and in order to service any related debt due, the Commssion may draw 
on  the  assets  held  in  the  CPF  (for  MFA  and  Euratom  loans  to  third  countries)  and  call  upon  Member 
States, while respecting the own resources ceilings (see note 6.6).  

125 

 
 
   
 
 
 
   
 
 
 
 
 
Loans: Movement in impairment loss allowance  

Annual accounts of the European Union 2021 

Loss allowance at 01.01.2021 
Transfer to Stage 1 
Transfer to Stage 2 
Transfer to Stage 3 
New loans  
Derecognitions - repayments 
Derecognitions - write offs 
Loss allowance remeasurement 
Other 
Loss allowance at 31.12.2021 

Loans: Staging assessment 

Stage 1   Stage 2 

Stage 3 

POCI 

Total  

EUR million 

 49 
 0 
 (41) 
 (0) 
 4 
 (0) 
– 
 (1) 
 (0) 
 10 

 6 
– 
 41 
 (1) 
 69 
 (0) 
– 
 185 
– 
 299 

 19 
– 
– 
 1 
 0 
 (0) 
– 
 6 
 0 
 26 

– 
– 
– 
– 
– 
– 
– 
– 
– 
– 

 73 
 0 
– 
 (0) 
 73 
 (0) 
– 
 189 
 (0) 
 336 

As referred to in the significant accounting policies, the impairment allowance for the financial assets at 
amortized cost other than receivables depends on the stage to which a financial asset is classified.  

The allocation to stages mainly depends on the counterparty’s credit rating. The staging model relies on a 
relative assessment of credit risk, that is, the EU may have different loans with the same counterparty in 
different  stages,  depending  on  the  counterparty’s  credit  risk  at  origination.  The  EU,  having  a  unique 
institutional  status,  lends  money  to  its  Member  States  or  to  sovereigns  in  difficulty.  As  a  result,  the  EU 
also applies also a qualitative assessment of the credit risk based on monitoring the economic situation of 
borrowers in difficulty.  

Stage 1 - no significant increase in credit risk  

Loans  to  counterparties  with  credit  ratings  in  the  investment  grade  (i.e.  between  AAA  (Aaa)  and  BBB- 
(Baa3)  on  the  S&P/Fitch  (Moody’s)  rating  scale  or  an  equivalent  external  or  internal  rating)  at  the 
reporting date, are considered low credit risk loans, and thus held in stage 1, except if they are overdue 
for more than 30 days (see Stage 2). In addition, any loans for which a significant increase in credit risk 
did  not  occur,  as  defined  below,  are  classified  to  Stage  1.  For  the  financial  assets  in  stage  1,  the 
impairment allowance is measured at the level of the 12 month expected credit losses (‘ECL’). 

Stage 2 - Significant increase in credit rating 

In  order  to  determine  whether  there  has  been  a  significant  increase  in  the  credit  risk  since  origination, 
and  a  thus  whether  moved  to  Stage  2  applies,  the  EU  applies  a  combination  of  quantitative  and 
qualitative assessments.  

All loans for which contractual payments are overdue by between 31 and 90 days, are moved to Stage 2. 

For  counterparties  with  credit  ratings  between  AAA  (Aaa)  and  BB-  (Ba3)  at  the  initial  recognition  date: 
Unless  the  low  risk  case  (above  in  Stage  1)  applies,  the  deterioration  is  considered  significant  if  the 
difference  between  the  rating  at  origination  and  that  at  the  reporting  date  is  equal  or  superior  to  3 
notches. 

For counterparties with credit ratings of B+ (B1) or B (B2) at initial recognition date: The deterioration is 
considered  significant  if  the  difference  between  the  initial  rating  and  the  current  rating  is  equal  or 
superior to 2 notches. 

For  counterparties  with  credit  ratings  of  B-  (B3)  or  lower  (in  CCC/Caa  range):  The  deterioration  is 
considered  significant  if  the  difference  between  the  initial  rating  and  the  current  rating  at  the  reporting 
date is equal or superior to 1 notch. 

Loans  originated  before  the  transtion  to  the  revised  EAR  11  (i.e.  1  January  2021),  for  which  no 
information on the credit risk at initial recognition is available without unde cost and effort, are classified 
to stage 2. 

126 

 
 
   
 
 
 
Annual accounts of the European Union 2021 

For  loans  in  Stage  2,  the  impairment  allowance  is  measured  at  the  level  of  life-time  expected  credit 
losses. 

Stage 3 - Credit impaired loans  

Loans are classified in Stage 3 when they are 90 days past due or when one or more events occur after 
the  loan  origination  that  have  a  detrimental  impact  on  the  estimated  future  cash  flows  of  that  financial 
asset. For example, a loan is classified to Stage 3, if:  

 
 
 

It is becoming probable that a borrower will enter bankruptcy or other financial reorganisation; 
The borrower has a rating class of D published by an external rating agency; and 
The  borrower  is  in  default  under  any  financial  obligation  towards  the  EU,  or  in  case  of  loans  for 
financial assistance, if the borrower is in default to any other international organisation financing the 
programme. 

For  loans  in  Stage  3,  the  impairment  allowance  is  measured  at  the  level  of  life-time  expected  credit 
losses. 

Purchased or originated as credit impaired (‘POCI’) 

The  EU  also  holds  ‘purchased  or  originated  as  credit  impaired’  (‘POCI’)  loans.  These  are  defaulted 
guaranteed  loans  where  the  EU  paid  a  guarantee  call  to  the  implementing  partner.  For  these  loans  all 
rights  have  been  subrogated  to  the  EU.  The  EU  recognises  them  on  its  balance  sheet  at  fair  value  at 
initial recognition. The EU classifies them as POCI loans and calculates an impairment allowance based on 
a lifetime ECL. Under the relevant agreements between the EU and the implementing partners, recovery 
proceedings are undertaken on behalf of the EU with the aim of recovering any sums due. 

Loans: ECL measurement 

The ECL measurement is a probability-weighted estimation of the difference between the contractual cash 
flows and the expected cash flows. The EU uses the following credit risk parameters for this estimation: 

 
 
 

Probability of default (‘PD’);  
Loss given default (‘LGD’); and  
Exposure at default (‘EAD’). 

The  PD  is  a  percentage  and  represents  the  likelihood  of  a  counterparty  defaulting  on  its  financial 
obligation, either over the next 12 months (used for the ’12 months ECL’), or over the remaining lifetime 
of the obligation (used for the ‘Lifetime ECL’).  

The LGD is a percentage showing the expected cash shortfall i.e. the part of the exposure expected to be 
lost  after  a  default,  taking  into  account  recoveries  and  collaterals.  In  order  to  estimate  the  LGD  on 
sovereign exposures, the EU takes into account its de-facto preferred creditor status.  

The EAD is the outstanding exposure (amount) at the time of a default.  

The  estimated  cash  flows  over  the  expected  life  of  the  financial  asset  are  discounted  at  the  effective 
interest rate.  

The EU considers reasonable and justified forward looking information, available without undue cost and 
effort, and adjusts the model parameters when necessary. 

Cash and cash equivalents: credit quality  

Credit rating 
Premium and high grade 
Upper medium grade 
Lower medium grade 
Non-investment grade  
Gross carrying amount 
Minus loss allowance 
Net carrying amount  

127 

EUR million 

31.12.2021 

40 716 
3 650 
 306 
 189 
44 860 
- 
44 860 

 
 
 
 
Treasury 

Annual accounts of the European Union 2021 

The amounts of cash and cash equivalents in the table above relate mainly to the cash managed by the 
Commission treasury. Most of the Commission's treasury resources are kept, in accordance with Council 
Regulation (EU, Euratom) No 609/2014 (as amended by Council Regulation 804/2016) on own resources, 
in the accounts opened by Member States for the payment of their own resources contributions (mainly 
GNI, VAT and TOR). 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 2021 between EUR 1 billion and EUR 38 billion, and with an 
overall  amount  of  payments  made  from  Commission  bank  accounts  in  2021  that  exceeded  EUR  170 
billion. 

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; and 

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. 

 

 

NGEU 

Lending and borrowing instruments for financial assistance do not, in general, keep any outstanding cash 
balances  due  to  underlying  back-to-back  principle  of  the  financial  assistance  loans.  However,  with 
implementation  of  diversified  funding  strategy  in  the  NGEU  instrument,  NGEU  holds  cash  with  the 
objective  of  ensuring  that  amounts  held  on  the  NGEU  bank  account  are  sufficient  to  meet  all  upcoming 
disbursement  needs  and  maintaining  a  defined  safety  buffer  while  avoiding  any  excess  balances.  The 
cash is placed on a bank account at the ECB, thus, the credit risk is very low. 

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.  

128 

 
 
 
Receivables: credit quality  

Annual accounts of the European Union 2021 

31.12.2021 

Gross carrying amount 
Minus loss allowance 
Net carrying amount  

Not due 

2 785 
 (2) 
2 783 

Past due  

 0-30 days  31-90 days 

Past due   Past due  
91 days 
- 1 year 
 578 
 (18) 
 560 

 9 
 (4) 
 5 

 15 
 (1) 
 14 

EUR million 

Past due  

> 1 year 

1 453 
 (147) 
1 305 

Total 

4 840 
 (173) 
4 667 

The amounts in this table do not include deferred charges and FGC receivable leg measured at FVSD (see note 2.6.2), as they are not 
subject to the impairment requirements.  

On 10 July 2020 and 8 July 2021, the Commission took decisions to amend its internal provisions for the 
recovery  of  amounts  receivable  in  order  to  alleviate  the  impact  of  the  COVID-19  pandemic  on 
Commission  debtors.  The  decision  temporarily  extended  the  deadlines  for  payments  for  new  debts  and 
provided the possibility to grant additional time for payment for those debts that were pending. 

Financial assets at FVSD – debt securities: Credit quality 

Common Provisioning Fund 

The weighted average credit rating of the CPF portfolio is A- (S&P or equivalent). 

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  10%  of  the  portfolio.  The  five  countries  with  the  highest  exposure  (Spain,  France,  Italy, 
Germany  and  the  Netherlands)  represent  altogether  30%  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. 

ECSC in liquidation 

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). 

Financial assets at FVSD – derivatives: Credit quality 

The  derivative  assets  mainly  relate  to  the  guarantees  on  equity  portfolios  and  to  currency  forward 
contracts.  Therfore,  the  credit  risk  is  limited  to  the  counterparty  risk.  The  guarantee  on  equity  will  be 
settled with the EU implementing partner, the EIB Group, which is rated AAA. The sole counterparty for 
all  outstanding  currency  forwards  as  of  31  December  2021  is  the  Banque  de  France,  hence  no  credit 
enhancements, such as collateral, netting agreements, or guarantees are put in place as of this date. 

129 

 
 
 
 
 
 
 
 
 
 
 
Financial guarantee contracts: credit quality 

Annual accounts of the European Union 2021 

31.12.2021 

Stage 1 

Stage 2 

Total 

EUR million 

Long-term rating 
Prime and high grade 
Upper medium grade 
Lower medium grade 
Non-investment grade 
Managed on collective basis / not rated 
Total 

 0 
 2 
 219 
3 964 
 2 
4 187 

 1 
– 
– 
51 079 
– 
51 080 

Financial guarantee contracts: Movement in the loss allowance  

Loss allowance at 01.01.2021 
Transfer to Stage 2 
Transfer to Stage 1 
Additions 
Release of guarantees 
Remeasurement 
Loss allowance at 31.12.2021 
Financial guarantee liability carrying 
amount at 31.12.2021 

Stage 1  

Stage 2   

 859 
 (494) 
– 
 8 
 (0) 
 112 
 485 

 610 

5 143 
 494 
– 
 623 
 (0) 
 789 
7 048 

7 183 

 1 
 2 
 219 
55 043 
 2 
55 267 

EUR million 

Total 

6 002 
 0 
– 
 630 
 (0) 
 900 
7 533 

7 794 

* Transfers  from  and  to  stage  1  /  stage  2  are  measured  at  the  opening  balance  impairment  allowance,  whereas  the  changes  of  the 

amount arising from the change of the stage (i.e. measuremet at 12-months or lifetime ECL) are part of re-measurement. 

Financial guarantee contracts: staging policies 

The key risk indicator for the allocation of FGC to stages is the credit rating of the guaranteed debt. The 
staging  model  compares  the  credit  rating  at  origination  to  the  credit  rating  at  the  reporting  date.  For 
portfolio guarantees, the weighted average credit rating of the guaranteed portfolio is considered. 

Stage 1 - no significant increase in credit risk  

FGC  with  credit  ratings  in  the  investment  grade  (i.e.  between  AAA  (Aaa)  and  BBB-  (Baa3)  on  the 
S&P/Fitch  (Moody’s)  rating  scale  or  an  equivalent  external  or  internal  rating)  at  the  reporting  date,  are 
considered low credit risk independent of the initial credit rating and held in stage 1. In addition, any FGC 
for which a significant increase in credit risk did not occur, as defined below, are classified to Stage 1. For 
the FGC in Stage 1, the impairment allowance is measured at the level of the 12 month ECL. 

Stage 2 - Significant increase in credit rating 

The folowing deterioration of credit rating is considered significant and leads to a reclassification of a FGC 
to Stage 2: 

 

 

 

For guarantees with a credit rating between AAA (Aa1) and BB- (Ba3) on the S&P/Fitch (Moody’s) 
rating scale or an equivalent external or internal rating at initial recognition, a rating deterioration 
is  considered  significant  if  the  difference  between  the  initial  rating  and  the  one  at  the  reporting 
date is equal or superior to 3 notches for guarantees relating to a single debt instrument and 2 
notches for guarantees relating to a portfolio of debt; 

For  guarantees  with  a  credit  rating  between  B+  (B1)  or  B  (B2)  at  initial  recognition,  a  rating 
deterioration  is  considered  significant  if  the  difference  between  the  initial  rating  and  the  one  at 
the  reporting  date  is  equal  or  superior  to  2  notches  for  guarantees  relating  to  a  single  debt 
instrument and 1 notch for guarantees relating to a portfolio of debt; and 

For  guarantees  with  a  credit  rating  between  B-  (B3)  or  lower  at  initial  recognition,  a  rating 
deterioration  is  considered  significant  if  the  difference  between  the  initial  rating  and  the  one  at 
the reporting date is equal or superior to 1 notch (single debt and portfolio). 

130 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

If  information  on  the  credit  rating  is  not  available  but  an  estimation  of  the  expected  annual  claims  has 
been  made  at  initial  recogniton,  the  actual  level  of  claims  compared  to  the  initial  planning  is  also 
considered a reasonable risk indicator for the assessment of SICR. 

In  addition  to  the  above  criteria,  the  EU  may  apply  a  qualitative  assessment  of  the  SICR,  based  on 
additional, reasonable and justified, information available. 

FGC  originated  before  the  transtion  to  the  revised  EAR  11  (i.e.  before  1  January  2021),  for  which  no 
information on the credit risk at initial recognition is available without undue cost and effort, are classified 
to Stage 2. 

For FGC in Stage 2, the impairment allowance is measured at the level of life-time expected credit losses. 

Classification to Stage 3 and POCI does not apply to FGC. 

Budgetary guarantees 

The Union is mainly exposed to credit risk through the operations which it guarantees. When the credit 
quality of the underlying operations deteriorates, default events become more likely and hence also calls 
on EU guarantees.  

In  order  to  monitor  and  manage  this  risk,  the  Commission  relies  on  a  Credit  Risk  Model  to  assess 
potential losses, using, inter alia, the inputs provided by the Implementing Partners. The output of these 
models  is  interpreted  and  combined  with  expert  judgment  to  derive  a  risk  assessment  that  is  coherent 
with the substance of the transaction and the relevant economic circumstances. 

Credit risk as at 31 December 2020 
Analysis of the age of financial assets that are not impaired 

31.12.2020 

Loans 
Receivables and recoverables 
Financial assets at fair value 
through surplus or deficit 
Total at 31.12.2020 
Credit quality of financial assets that are neither past due nor impaired 

93 309 
74 493 
 199 
168 001 

Total  Neither past 
due nor 
impaired 
93 308 
59 702 
 199 
153 209 

EUR million 

Past due but not impaired 

< 1 year 
 0 
 505 
– 
 505 

1-5 years  > 5 years 
– 
 257 
– 
 257 

– 
14 030 
– 
14 030 

31.12.2020 

AFS* 

Financial 
assets at 
FVSD** 

Loans 

Receivables 
and 
recoverables 

EUR million 

Cash 

Total 

9 005 
3 415 
2 133 
 310 
14 862 

– 

– 

 199 
– 
– 
– 
 199 

– 

– 

2 040 
35 040 
48 139 
7 964 
93 182 

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 

 126 

3 318 

 19 

3 463 

– 

 4 

– 

 4 

– 
14 862 

– 
 199 

 126 
93 309 

3 322 

 19 
59 702  16 742 

3 466 
184 814 

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

Counterparties without 
external credit rating 
Debtors without defaults 
in the past 
Debtors with defaults in 
the past 

Total 

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

131 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

6.6.  LIQUIDITY RISK 

Liquidity risk as at 31 December 2021 
Maturity analysis of non-derivative financial liabilities by remaining contractual maturity 

Borrowings 
Payables 
Other  
Total at 31.12.2021 

31.12.2021 

Undiscounted contractual cash-flows 

< 1 year 
(23 769) 
(46 372) 
 (218) 
(70 358) 

1-5 years  > 5 years 
(180 660) 
– 
 (890) 
(181 550) 

(45 030) 
– 
 (830) 
(45 860) 

Total 
(249 459) 
(46 372) 
(1 938) 
(297 769) 

Maturity analysis of derivative financial liabilities by remaining contractual maturity 

31.12.2021 
Undiscounted contractual cash-flows 

Derivative pay leg 
Derivative receive leg 
Net cash flows at 31.12.2021 

  < 1 year  1-5 years  > 5 years 
– 
– 
– 

 (646) 
 648 
 2 

 (5) 
– 
 (5) 

Total 
 (651)   
 648   
 (3) 

EUR million 

Carrying 
amount 
(236 720) 
(46 372) 
(1 605) 
(284 697) 

EUR million 

Carrying 
amount 

 (3) 

Maturity analysis of financial guarantee contracts issued by earliest period in which the guarantee could 
be called 

Financial Guarantee Contracts 
Total at 31.12.2021 

31.12.2021 
Maximum amount of guarantee 

Total 
  < 1 year  1-5 years  > 5 years 
 (1) 
(56 259) 
 (1)  (56 259) 

(55 381) 
(55 381) 

 (878) 
 (878) 

EUR million 

Carrying 
Amount 
(7 794) 
(7 794) 

Borrowing activities for NGEU and financial assistance 

The first recourse for the repayment of borrowings for financial assistance is the timely collection of the 
related  financial  assistance  and  NGEU  loan  repayments.  However,  there  are  additional  safeguards  that 
could be applied in case of payment defaults or payment delays of borrowers.  

For MFA and Euratom loans to third countries, the Guarantee Fund for external actions compartment of 
the CPF provides for a liquidity reserve. Therefore, the available assets of the Guarantee fund  would be 
used  first  in  order  to  repay  the  related  borrowings  (but  only  after  a  first  recourse  to  third  party 
guarantors for Euratom – see note 6.4). If at any moment the available assets should prove insufficient 
to cover the actual losses, the Commission will activate measures to provide for additional resources (e.g. 
recourse  to  temporary  use  of  Commission’s  treasury  liquidity,  recourse  to  temporary  transfers  and/or 
additional expenditure from the EU budget). 

For NGEU, the Commission may also apply active cash management and short-term borrowing in order to 
service EU debts, while for SURE, the Commission may roll over the associated borrowings contracted on 
behalf of the Union.  

For  all  financial  assistance  borrowings  as  well  as  for  the  NGEU  borrowings,  the  Commission  may  call 
resources up to the available Own Resources margin in order to service the EU debts. The own resources 
legislation  fixes  the  ceiling  for  own  resources  to  cover  annual  appropriations  for  payment  at  1.40%  of 
Member States' GNI, plus an additional temporary increase of 0.6 percentage points for NGEU. The 2021 
budget included a total of own resources to finance the expenditure of 1.12% of GNI. This means that at 
31 December 2021 there existed an available margin of 0.88% to cover its liabilities. To this end, the EU 
is  entitled  to  call  upon  Member  States  to  ensure  compliance  with  the  EU's  legal  obligation  towards  its 
lenders. 

132 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Finally,  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 

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 (EU, Euratom) No 609/2014 (on the methods and procedure for making available own 
resources,  amended  by  Council  Regulation  (EU,  Euratom)  2016/804),  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  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. Own resources 
or additional funding can be called up in advance from Member States if needed, up to certain limits and 
under  certain  conditions  provisioned  under  Council  Regulation  (EU,  Euratom)  No  609/2014  amended  by 
Council  Regulation  (EU,  Euratom)  2016/804.  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 above 
50%. 

Budgetary guarantees 

The maturity analysis for financial guarantees is presented using the prudent approach, under which the 
maximum amount of the guarantee given is allocated to the earliest period in which the guarantee could 
be called. Given that most of the EU guarantees are on first demand, a significant amount is allocated to 
the first time band. However, the probability that the EU will be called under all guarantees for the entire 
amount  in  the  first  period  is  remote.  Moreover,  the  amount  that  the  EU  expects  to  lose  is  often  much 
lower  then  the  guarantee  ceilling,  therefore  the  amount  of  the  liquidity  risk  needs  to  be  seen  in  the 
conjunction with the carrying amount of the guarantee liabilities. 

A  key  objective  of  the  risk  management  framework  of  contingent  liabilities  is  to  ensure  that  the  EU 
budget  can,  at  any  time,  honour  its  obligations  without  disrupting  the  normal  implementation  of  the 
budget. This also entails the mitigation of the liquidity risk related to budgetary guarantees, i.e. the risk 
that the Union would have insufficient funds to fulfil in a timely manner all its guarantee-related payment 
obligations  (which  might  then  lead  to  for  example  the  crowding  out  of  other  expenses  and  the 
postponement of payments to the following budgetary years). 

In this respect, each budgetary guarantee is backed by sufficient provisioning paid into the CPF so as to 
ensure there is always enough liquidity to pay guarantee calls in a timely manner.  

133 

 
Annual accounts of the European Union 2021 

The  EU  monitors  on  a  regular  basis  the  adequacy  of  the  provisioning  rate  of  each  budgetary  guarantee 
programme and reports17 every year on its estimate as to whether those amounts are sufficient to cover 
the risk for next 5 years with a defined level of certainty. 

Furthermore,  there  are  additional  safeguard  procedures  in  place  (temporary  transfers  between  CPF 
compartments and the use of central treasury liquidity) to ensure sufficient liquidity is available. 

Common Provisioning Fund 

The CPF 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 26%. 

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 or margin requirements, as the current hedging counterparty accepts to operate with 
the Commission without any requirements for collateral or margin calls.  

Liquidity risk as at 31 December 2020 

Maturity analysis of financial liabilities by remaining contractual maturity  

Borrowings 
Payables 
Financial guarantee liabilities 
Other financial liabilities 
Total at 31.12.2020 

31.12.2020 

< 1 year 
(10 410) 
(32 408) 
 (90) 
 (149) 
(43 057) 

1-5 years 
(20 230) 
– 
– 
 (665) 
(20 895) 

> 5 years 
(62 553) 
– 
– 
 (947) 
(63 500) 

EUR million 

Total 
(93 192) 
(32 408) 
 (90) 
(1 761) 
(127 451) 

Financial instruments at fair value through surplus or deficit 

Derivative pay leg 
Derivative receive leg 
Net cash flows at 31.12.2020 

31.12.2020 

  < 1 year  1-5 years 

 (417) 
 423 
 5 

 (4) 
– 
 (4) 

EUR million 

> 5 
years 
 (1) 
– 
 (1) 

Total 

 (421) 
 423 
 1 

17  For  example  in  the  Working  Document  XI  attached  to  the  Draft  Budget  that  presents  the  implementation  of 
Budgetary  Guarantees,  the  Common  Provisioning  Fund  and  the  assessment  of  the  sustainability  of  the  contingent 
liabilities  arising  from  budgetary  guarantees  and  financial  assistance  pursuant  to  Article  41(5)  of  the  Financial 
Regulation. 

134 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
Annual accounts of the European Union 2021 

6.7.  OTHER PRICE RISK 

As  at  31  December  2021,  the  EU  is  exposed  to  other  price  risks  (equity  risk)  arising  from  non-quoted 
equity investments (such as venture capital and other investment funds), money market funds (such as 
the  EIB  Unitary  Fund)  and  investments  in  pooled  portfolios  (see  note  2.4.2.1),  as  well  as  through 
guarantees covering non-quoted equity and quasi equity investments, treated as derivatives at fair value 
through surplus or deficit (see note 2.4.2.2). 

Equity  price  risk  refers  to  the  risk  that  the  fair  values  of  equity  investments  change  as  the  result  of 
fluctuations  in  the  levels  of  equity  prices  and/or  the  value  of  the  guaranteed  equity  investments.  The 
effect  on  surplus  or  deficit  of  a  10%  value  increase  or  decrease  of  the  above-mentioned  instruments 
would be as follows: 

Equity investments 

Money market funds and investments in pooled portfolios  
Guarantees on equity* 
Total at 31.12.2021 

*The risk of guarantees on equity is based on the notional amount that is covered by the guarantee. 

10% 
238 
251 
415 
905 

EUR million 
(10)% 
(238) 
(251) 
(415) 
(905) 

The EU invests in, or guarantees, unquoted assets whose values are not publicly available. Most of these 
financial instruments are implemented by the entrusted entities, who are experts in the industry and they 
assess and monitor those assets on a regular basis. 

135 

 
 
 
 
 
Annual accounts of the European Union 2021 

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. 

136 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

KEY MANAGEMENT FINANCIAL ENTITLEMENTS 

Entitlement (per employee) 

Category 1 

Category 2 

Category 3 

Category 4 

Category 5 

Basic salary (per month) 

29 205.17 

26 453.96 - 
27 512.13 

21 163.17 - 
23 808.57 

22 856.23 - 
24 337.65 

13 456.68 - 
21 163.17 

EUR 

Residential/Expatriation 
allowance  

Family allowances: 

15% 

15% 

15% 

15% 

0-4%-16% 

Household (% salary) 

2% + 196.44 

2% + 196.44 

2% + 196.44 

2% + 196.44 

2% + 196.44 

Dependent child 

Pre-school 

Education, or 

Education outside place of work 

 429.24 

 104.86 

 291.24 

 582.48 

 429.24 

 104.86 

 291.24 

 582.48 

 429.24 

 104.86 

 291.24 

 582.48 

Presiding judges allowance 

N/A 

N/A 

 668.22 

Representation allowance 

1 582.67 

1 017.17 

 668.22 

 429.24 

 104.86 

 291.24 

 582.48 

N/A 

N/A 

 429.24 

 104.86 

 291.24 

 582.48 

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 
(Cat. 1-4: two months of basic salary) 

58 410.36 

52 907.93 - 
55 024.27 

42 326.35 - 
47 617.14 

45 712.46 - 
48 675.31 

Reimbursed 

Family travel expenses 

Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

Moving expenses 

Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

Leaving office: 

Resettlement expenses 
(Cat. 1-4: one month of basic salary) 

29 205.17 

26 453.96 - 
27 512.13 

21 163.17 - 
23 808.57 

22 856.23 - 
24 337.65 

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: 

Community tax 

8% - 45% 

8% - 45% 

8% - 45% 

8% - 45% 

8% - 45% 

Sickness insurance (% salary) 

1.7% 

1.7% 

1.7% 

1.7% 

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 

7% 

N/A 

 3 

7% 

N/A 

 8 

7% 

N/A 

 93 

7% 

N/A 

 27 

1.7% 

6-7% 

10.1% 

 118 

137 

 
 
 
 
 
 
 
   
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
   
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

8. 

EVENTS AFTER THE BALANCE SHEET DATE 

At the date of signature of these accounts, aside from the matter explained below, 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. 

Ukraine 

In accordance with EU accounting rule 19, Events After the Reporting Date, the war in Ukraine that began 
in February 2022 is considered as a non-adjusting event, thus not requiring adaptions to any amounts in 
these financial statements at 31 December 2021. As indicated in note 2.4, the EU has loans outstanding 
(funded  by  borrowings,  see  note  2.11)  of  EUR  4.7  billion  (nominal  value)  at  31  December  2021  with 
Ukraine under the MFA and Euratom programmes. 

Based on Decision (EU) 2022/313 of the European Parliament and the Council of 24 February 2022, the 
Commission granted to Ukraine a further EUR 1.2 billion of loans under the MFA programme of which EUR 
600 million have been disbursed in March and another EUR 600 million in May 2022. 

Additionally, the EIB had granted loans worth EUR 2.1 billion to Ukraine (outstanding principal disbursed 
at 31 December 2021) under its External Lending Mandate, which are guaranteed by the EU budget – see 
note  4.1.  The  amounts  concerned  are  assessed  based  on  the  situation  at  year-end,  not  at  the  time  of 
preparation of these financial statements.  

Based  on  the  facts  and  circumstances  at  the  time  of  preparation  of  these  financial  statements,  in 
particular the evolving situation, the financial effect of the war in Ukraine on  the EU finances cannot be 
reliably estimated. 

138 

 
 
Annual accounts of the European Union 2021 

9. 

SCOPE OF CONSOLIDATION 

A. CONTROLLED ENTITIES (55) 
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 (42) 
2.1. Executive Agencies (7) 

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

European Education and Culture Executive Agency 
(EACEA) 

European Innovation Council and SMEs Executive 
Agency (EISMEA) 

Consumers, Health, Agriculture and Food Executive 
Agency (CHAFEA) (up until 31 March 2021) 

European Research Council Executive Agency 
(ERCEA) 

European Health and Digital Executive Agency 
(HaDEA) (as from 1 April 2021) 

European Climate, Infrastructure and Environment 
Executive Agency (CINEA)  

European Research Executive Agency (REA) 

2.2. Decentralised Agencies (35) 
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 Union Agency for Cybersecurity (ENISA) 
European Union Agency for Law Enforcement 
Training (CEPOL) 

European Food Safety Authority (EFSA) 
European Union Agency for Railways (ERA) 
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 Union Agency for the Space Programme 
(EUSPA) 

European Monitoring Centre for Drugs and Drug 
Addiction (EMCDDA) 

European Union Agency for Criminal Justice 
Cooperation (Eurojust) 

European Union Agency for Law Enforcement 
Cooperation (EUROPOL) 

European Agency for Safety and Health at Work 
(EU-OSHA) 

European Union Agency for Fundamental Rights 
(FRA) 

European Centre for Disease Prevention and Control 
(ECDC) 

European Insurance and Occupational Pensions 
Authority (EIOPA) 

European Centre for the Development of Vocational 
Training (CEDEFOP) 

Translation Centre for the Bodies of the European 
Union (CdT) 

European Union Agency for the Cooperation of 
Energy Regulators (ACER) 

European Joint Undertaking for ITER and the 
Development of Fusion Energy (Fusion for Energy) 

Agency for Support for the Body of European 
Regulators for Electronic Communications 
(BEREC Office) 

European Union Agency for the Operational 
Management of Large-Scale IT Systems in the Area 
of Freedom, Security and Justice (eu-LISA) 

European Border and Coast Guard Agency 
(FRONTEX) 

European Public Prosecutor's Office (EPPO) 
(as from 24 June 2021) 

European Labour Authority (ELA) 
(as from 26 May 2021) 

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) 

139 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MINOR ENTITIES 

Annual accounts of the European Union 2021 

The entities listed below have not been consolidated using the equity method in the 2021 EU consolidated 
financial statements on the basis of immateriality: 

MINOR ENTITES (8) 
Circular Bio-based Europe Joint Undertaking (CBE JU) 
(legal and universal successor of the Bio-based Industries Joint Undertaking) 

Clean Aviation Joint Undertaking (CAJU) 
(legal and universal successor of the Clean Sky 2 Joint Undertaking) 

Clean Hydrogen Joint Undertaking (Clean H2 JU) 
(legal and universal successor of the Fuel Cells and Hydrogen 2 Joint Undertaking) 

Europe’s Rail Joint Undertaking (EU-RAIL JU) 
(legal and universal successor of the Shift2Rail Joint Undertaking) 

Innovative Health Initiative Joint Undertaking (IHI JU) 
(legal and universal successor of the Innovative Medicines Initiative 2 Joint Undertaking) 

Key Digital Technologies Joint Undertaking (KDT JU) 
(legal and universal successor of the ECSEL Joint Undertaking) 

Single European Sky ATM Research 3 Joint Undertaking (SESAR 3 JU) 
(legal and universal successor of the SESAR Joint Undertaking) 
EuroHPC Joint Undertaking (EuroHPC) 

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

140 

 
 
 
Annual accounts of the European Union 2021 

EUROPEAN UNION 
FINANCIAL YEAR 2021 

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.

141 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

CONTENTS 

EU BUDGET RESULT ............................................................................... 143 

STATEMENTS OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS ........... 144 

NOTES TO THE BUDGETARY IMPLEMENTATION REPORTS ........................... 146 

3.1. 

THE EU BUDGET FRAMEWORK ........................................................... 146 

3.2.  MULTIANNUAL FINANCIAL FRAMEWORK 2021-2027 ............................. 146 

3.3.  MFF DETAILED HEADINGS (PROGRAMMES) ......................................... 148 

3.4. 

3.5. 

3.6. 

3.7. 

NextGenerationEU ............................................................................ 148 

ANNUAL BUDGET ............................................................................. 149 

REVENUE ........................................................................................ 151 

RECONCILIATION OF ECONOMIC RESULT WITH BUDGET RESULT .......... 153 

IMPLEMENTATION OF THE 2021 EU BUDGET ............................................. 155 

IMPLEMENTATION OF EU BUDGET REVENUE ............................................. 156 

5.1. 

SUMMARY OF THE IMPLEMENTATION OF EU BUDGET REVENUE ............. 156 

IMPLEMENTATION OF EU BUDGET EXPENDITURE ...................................... 157 

6.1.  MFF: BREAKDOWN & CHANGES IN COMMITMENT & PAYMENT 

APPROPRIATIONS ............................................................................ 157 

6.2.  MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS ................. 158 

6.3.  MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ....................... 159 

6.4.  MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) .................. 160 

6.5.  MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN ..................... 161 

6.6.  MFF: OUTSTANDING COMMITMENTS BY APPROPRIATIONS TYPE ............ 162 

6.7. 

6.8. 

6.9. 

DETAILED MFF: BREAKDOWN AND CHANGES IN COMMITMENT AND 
PAYMENT APPROPRIATIONS .............................................................. 163 

DETAILED MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS .. 169 

DETAILED MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ........ 175 

6.10.  DETAILED MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) ... 182 

6.11.  DETAILED MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN ...... 188 

6.12.  DETAILED MFF: OUTSTANDING COMMITMENTS BY 

APPROPRIATIONS TYPE .................................................................... 192 

IMPLEMENTATION OF THE BUDGET BY INSTITUTION ................................. 198 

7.1. 

7.2. 

7.3. 

IMPLEMENTATION OF BUDGET REVENUE ............................................ 198 

IMPLEMENTATION OF COMMITMENT APPROPRIATIONS......................... 199 

IMPLEMENTATION OF PAYMENT APPROPRIATIONS ............................... 200 

IMPLEMENTATION OF THE AGENCIES' BUDGETS ....................................... 201 

8.1. 

8.2. 

BUDGET REVENUE ........................................................................... 201 

COMMITMENT AND PAYMENT APPROPRIATIONS BY AGENCY ................. 202 

142 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

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 

2021 

2020 

239 596 

174 306 

(226 175) 

(171 721) 

(4 244) 

(2 086) 

 265 

(6 338) 

14 032 

7 694 

 126 

3 230 

 78 

1 398 

7 694 

9 092 

 (207) 

1 768 

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  (EU,  Euratom)  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  5.1  “Summary  of  the  implementation  of  EU  Budget 

Revenue”, column 8 “Total Revenue”. 

b.  Payments  against  current  year  appropriations:  table  6.3  “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 6.3 “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 
6.3 “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 6.3 “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. 

143 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

STATEMENTS OF COMPARISON OF BUDGET AND 
ACTUAL AMOUNTS 

Budget revenue 

1  Own resources 

  11 - Sugar levies 

  12 - Customs duties 

  13 - VAT 

  14 - GNI 

16 - Reduction of GNI-based contribution granted to 
certain Member States 

  17 - Plastic packaging waste 

2  Surpluses, balances and adjustments 

3  Administrative revenue 

4  Financial revenue, default interest and fines 

5  Budgetary guarantees, borrowing and lending operations 
Revenue, contributions and refunds related to Union 
policies 

6 

EUR million 

Initial 
budget 
adopted 

Final 
adopted 
budget 

Entitlements 
established 

Revenue 

156 867 

156 993 

160 869 

158 632 

0 

17 606 

17 967 

0 

17 348 

17 941 

 1 

21 274 

17 934 

 1 

19 037 

17 934 

121 294 

115 858 

115 819 

115 819 

0 

0 

0 

1 726 

 119 

0 

– 

5 847 

1 769 

1 726 

 515 

0 

 11 

5 831 

1 779 

2 306 

18 494 

55 501 

 11 

5 831 

1 772 

2 230 

1 633 

55 501 

7 348 

7 008 

26 114 

19 827 

  Total 

166 060 

168 011 

265 063 

239 596 

     of which Next Generation EU (NGEU) 

– 

– 

55 501 

55 501 

Budget expenditure: commitments by multiannual financial 
framework (MFF) heading 

MFF Heading 

1  Single Market, Innovation and Digital 

2  Cohesion, Resilience and Values 

  2a. Economic, social and territorial cohesion 

  2b. Resilience and values 

3  Natural Resources and Environment 

     of which: Market related expenditure and direct 
payments 

4  Migration and Border Management 

5  Security and Defence 

6  Neighbourhood and the World 

7  European Public Administration 

     of which: Administrative expenditure of the 
institutions 
O  Outside MFF 

S 

Solidarity mechanisms within and outside the Union 
(Special instruments) 

Initial 
adopted 
budget 

Final 
adopted 
budget 

Total 
appropriations 
available 

EUR million 

Commitments 
made 

20 817 

20 817 

52 862 

53 219 

48 191 

48 191 

4 671 

5 029 

58 569 

58 574 

34 960 

452 326 

106 413 

345 913 

79 377 

25 683 

151 947 

48 468 

103 479 

59 723 

40 368 

40 371 

41 518 

40 818 

2 279 

1 709 

2 303 

1 706 

16 097 

17 031 

10 448 

10 443 

4 313 

4 307 

– 

– 

1 471 

2 739 

2 368 

1 741 

17 474 

11 404 

4 879 

3 922 

2 759 

1 644 

1 625 

15 372 

10 930 

4 590 

 199 

1 223 

  Total 

164 251 

166 833 

606 331 

268 345 

     of which Next Generation EU (NGEU) 

– 

– 

421 070 

143 525 

144 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Budget expenditure: payments by multiannual financial 
framework (MFF) heading 

MFF Heading 

Initial 
adopted 
budget 

Final 
adopted 
budget 

Total 
appropriations 
available 

EUR million 

Payments 
made 

1  Single Market, Innovation and Digital 

2  Cohesion, Resilience and Values 

  2a. Economic, social and territorial cohesion 

  2b. Resilience and values 

17 192 

66 154 

61 868 

4 286 

16 670 

67 614 

63 855 

3 758 

3  Natural Resources and Environment 

56 804 

56 021 

22 478 

18 532 

131 414 

126 454 

79 628 

51 787 

58 310 

75 591 

50 863 

56 831 

     of which: Market related expenditure and direct 
payments 

40 354 

40 303 

41 467 

40 760 

4  Migration and Border Management 

5  Security and Defence 

6  Neighbourhood and the World 

7  European Public Administration 

     of which: Administrative expenditure of the 
institutions 
O  Outside MFF 

S 

Solidarity mechanisms within and outside the Union 
(Special instruments) 

2 686 

 671 

10 811 

10 450 

2 519 

 714 

11 455 

10 444 

4 313 

4 307 

– 

– 

1 293 

2 574 

2 734 

 726 

12 258 

12 368 

5 492 

3 931 

2 593 

2 547 

 708 

10 935 

10 705 

4 436 

 61 

1 223 

  Total 

166 060 

168 011 

246 812 

227 996 

     of which Next Generation EU (NGEU) 

– 

– 

55 501 

53 618 

Budget expenditure: outstanding commitments by 
multiannual financial (MFF) heading 

MFF Heading 

1 

2 

3 

4 

5 

6 

7 

O 

S 

Single Market, Innovation and Digital 

Cohesion, Resilience and Values 

2a. Economic, social and territorial cohesion 

2b. Resilience and values 

Natural Resources and Environment 
     of which: Market related expenditure and direct 
payments 
Migration and Border Management 

Security and Defence 

Neighbourhood and the World 

European Public Administration 
     of which: Administrative expenditure of the 
institutions 
Outside MFF 
Solidarity mechanisms within and outside the Union 
(Special instruments) 
Total 

EUR million 

Outstanding 
commitment
s carried-
over from 
2020 

1 

Liquidation 
of 
outstanding 
commitm. 
carried from 
2020 
2 

New 
outstanding 
commitment
s from 2021 

Total 
outstanding 
commit- 
ments 

3 

4=1+2+3 

42 361 

(14 410) 

183 747 

(70 192) 

180 084 

(68 550) 

3 662 

(1 641) 

40 860 

(15 330) 

 286 

4 950 

1 503 

28 785 

 981 

 627 

 11 

 0 

 (86) 

(1 872) 

 (521) 

(8 507) 

 (981) 

 (627) 

 (4) 

 (0) 

20 766 

95 478 

41 305 

54 174 

18 161 

 133 

 901 

1 415 

12 257 

1 075 

 684 

 140 

– 

48 717 

209 033 

152 839 

56 195 

43 691 

 333 

3 980 

2 397 

32 535 

1 076 

 684 

 147 

– 

303 197 

(111 816) 

150 194 

341 575 

     of which Next Generation EU (NGEU) 

– 

– 

     of which excluding Next Generation EU (NGEU) 

303 197 

(111 816) 

89 907 

60 288 

89 907 

251 668 

145 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

  NOTES TO THE BUDGETARY IMPLEMENTATION 

REPORTS  

3.1.  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. 

3.2.  MULTIANNUAL FINANCIAL FRAMEWORK 2021-2027 

EUR million 
in current prices 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

Total 

20 919   21 288   21 125   20 984  

 21 272 

21 847   22 077  

149 512  

52 786   55 314   57 627   60 761   63 387   66 536   70 283  

426 694  

48 191   49 739   51 333   53 077   54 873   56 725   58 639  

372 577  

4 595  

5 575  

6 294  

7 684  

8 514  

9 811   11 644  

54 117  

58 624   56 519   56 849   57 003   57 112   57 332   57 557  

400 996  

40 368   41 257   41 518   41 649   41 782   41 913   42 047  

290 534  

2 467  

3 043  

3 494  

3 697  

4 218  

4 315  

4 465  

25 699  

1 805  

1 868  

1 918  

1 976  

2 215  

2 435  

2 705  

14 922  

16 247   16 802   16 329   15 830   15 304   14 754   15 331  

110 597  

10 635   11 058   11 419   11 773   12 124   12 506   12 959  

82 474  

8 216 

8 528 

 9 

9 006 

9 219 

9 464 

9 786 

62 991  

163 483  165 892  168 761  172 024  175 632  179 725  185 377 

1 210 894 

166 140  167 585  165 542  168 853  172 230  175 674  179 187 

 1 195 211 

1. Single Market, 
Innovation and Digital 
2. Cohesion, Resilience 
and Values 
2a. Economic, social and 
territorial cohesion 

2b. Resilience and Values 
3. Natural Resources and 
Environment 
     of which: Market 
related expenditure and 
direct payments 
4. Migration and Border 
Management 

5. Security and Defence 
6. Neighbourhood and 
the World 
7. European Public 
Administration 
     of which: 
Administrative 
expenditure of the 
institutions 
Commitment 
appropriations 

Total payment 
appropriations 

Council  Regulation  (EU,  Euratom)  2020/2093  laying  down  the  2021-2027  MFF  was  adopted  on  17 
December  202018.  On  18  December  2020,  the  Commission  adopted  a  Communication  on  the  technical 
adjustment  of  the  multiannual  financial  framework  for  the  year  202119.The  above  table  shows  the  MFF 
ceilings at current prices, in accordance with the fixed annual deflator of 2% set out in Article 4(2) of the 
MFF Regulation. 2021 was the first financial year covered by the MFF 2021-2027. The overall ceiling for 
commitment  appropriations  for  2021  was  EUR 163 483 million,  whilst  the  corresponding  ceiling  for 
payment appropriations was EUR 166 140 million. 

Pursuant to Article 312(3) TFEU, the MFF determines the amounts of the annual ceilings for commitment 
appropriations  by  category  of  expenditure  (‘headings’)  and  of  the  annual  ceilings  for  payment 

18 Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework 

for the years 2021 to 2027, OJ L 433I, 22.12.2020, p. 11. 

19  Technical  adjustment  of  the  financial  framework  for  2021  in  accordance  with  Article  4  of  Council  Regulation  (EU, 
Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021 to 2027, COM(2020) 848 
final, 18.12.2020. 

146 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
Annual accounts of the European Union 2021 

appropriations. MFF headings correspond to the Union’s major sectors of activity. The structure and the 
content  of  the  headings  changed  significantly  in  comparison  with  the  previous  MFF  2014-2020.  An 
explanation of the various headings of the 2021-2027 MFF is given below. 

The  MFF  2021-2027  will  amount  to  EUR  1  211  billion  (EUR  1  074  billion  in  2018  prices),  including  the 
European Development Fund  (EDF). In addition, NextGenerationEU  will provide an additional amount of 
EUR 806.9 billion (EUR 750 billion in 2018 prices) up to 2023 in commitments and 2026 in payments.  

For  the  annual  budget  procedure,  the  budget  nomenclature  is  further  structured  by  policy  ‘clusters’, 
providing further clarity on how individual spending programmes contribute to the Union’s policy goals. 

Heading 1 – Single Market, Innovation and Digital 

This  heading  includes  key  EU  programmes  supporting  the  areas  of  research  and  innovation,  digital 
transformation,  strategic  infrastructure,  strengthening  the  single  market  and  strategic  space  projects. 
Programmes under this heading include Horizon Europe, the InvestEU Fund, Connecting Europe Facility, 
the Single market programme and the European space programme. 

Programmes  receiving  contributions  from  NGEU  (external  assigned  revenue)  in  this  heading:  Horizon 
Europe and InvestEU Fund. 

Heading 2 – Sustainable growth: natural resources 

This heading is divided in two sub-headings: Economic, social and territorial cohesion (2a), and Resilience 
and values (2b). 

Spending under this heading aims at strengthening the resilience and cohesion between the EU Member 
States. The funding  helps reduce  disparities in  and between EU  regions, and within and across Member 
States,  and  promote  sustainable  territorial  development  (European  Regional  Development  Fund, 
Cohesion  Fund,  European  Social  Fund  Plus).  It  also  supports  the  Union’s  solidarity  and  cooperation  in 
preparedness  and  response  to  disasters  (Union  Civil  Protection  Mechanism  and  rescEU).  In  addition, 
programmes under this heading seek to make the EU more resilient to present and future challenges by 
investing in the green and  digital transition, young  people (Erasmus), health  (EU4Health) and action to 
protect EU values (Justice, Rights and Values) and promote cultural diversity (Creative Europe). 

This heading includes the RRF, powered by the vast majority of the funding provided by  NGEU over the 
period 2021-2023. Other programmes receiving contributions from NGEU (external assigned revenue) in 
this heading: REACT-EU, Union Civil Protection Mechanism (rescEU). 

MFF programme 

Commitment 
appropri- 
ations 

Commit- 
ments made 

Payment 
appropri- 
ations 

Payments 
made 

European Regional Development Fund (ERDF) 

31 458 

24 038 

6 058 

4 926 

European Social Fund (ESF) 

Total REACT-EU package 

Heading 3 – Natural Resources and Environment  

19 161 

15 435 

2 267 

2 081 

50 620 

39 473 

8 325 

7 007 

32 466 

EUR million 

Outstanding 
commitm. at 
end of 2021 

19 112 

13 354 

Expenditure  under  this  heading  invests  in  sustainable  agriculture  (common  agricultural  policy)  and 
fisheries  and maritime policy (Zuropean Maritime,Fisheries and Aquaculture Fund), as  well programmes 
dedicated to environmental protection and climate action (LIFE programme, Just Transition Fund). 

Programmes  receiving  contributions  from  NGEU  (external  assigned  revenue)  in  this  heading:  rural 
development, Just Transition Fund. 

Heading 4 – Migration and Border Management 

The programmes (Asylum, Migration and Integration Fund, Integrated Border Management Fund) and the 
decentralised  agencies  (such  as  the  European  Border  and  Coast  Guard  Agency  (Frontex)  and  the 
European Union Agency for Asylum) financed under this heading seek to tackle the challenges linked to 
migration  and  the  management  of  the  EU’s  external  borders  and  to  the  safeguarding  of  the  asylum 
system within the EU. 

147 

 
 
 
 
 
 
Heading 5 – Security and Defence 

Annual accounts of the European Union 2021 

This  heading  reflects  the  increased  need  for  cooperation  at  Union  level  to  address  security  threats  and 
increase its strategic autonomy. It includes programmes whose role is to improve the security and safety 
of  Europe’s  citizens  (Internal  Security  Fund),  to  strengthen  Europe’s  defence  capacities  (European 
Defence Fund), and to provide the tools needed to respond to internal and external security challenges. 

Heading 6 – Neighbourhood and the World 

Programmes  under  this  heading  reinforce  the  EU  socio-economic  impact  in  its  neighbourhood,  in 
developing countries and the rest of the world. The new NDICI- Global Europe instrument merges several 
former EU external financing instruments, including cooperation with African, Caribbean and Pacific (ACP) 
countries previously financed by the European Development Fund. The heading also includes assistance 
for countries preparing for accession to the EU (Pre-accession assistance) and the Union’s Humanitarian 
Aid programme. 

Heading 7 - European Public Administration 

This heading covers administrative expenditure for all institutions, pensions and the European Schools.  

Heading 9 – Special instruments 

Flexibility  mechanisms  in  the  EU  budget  enable  the  EU  to  mobilise  the  necessary  funds  to  react  to 
unforeseen  events  such  as  crisis  and  emergency  situations.  In  the  annual  budgetary  nomenclature  and 
implementation, they are identified under ‘heading 9’, although they can be mobilised over and above the 
MFF expenditure ceilings. 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. 

3.3.  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 6.7 - 6.12 below). 

3.4.  NextGenerationEU 

With a budget of EUR 421.1 billion for the non-repayable support (grants), NGEU has a major impact on 
the  total  EU  annual  budgets  2021  through  to  2026  and  on  their  implementation.  In  2021,  this  amount 
has  been  fully  inscribed  as  assigned  revenue  appropriations.  All  commitments  for  the  non-repayable 
support  will  be  entered  by  the  31  December  2023 and  will  be  honoured  by  payments  by  31  December 
2026, in accordance with the Articles 3(4) and 3(9) of the EURI Regulation20. 

For  a  comprehensive  overview  of  the  NGEU  activities,  consult  sections  2.2  and  2.3  of  the  Financial 
Highlights of the Year. 

20 Council Regulation (EU) 2020/2094 of 14 December 2020 establishing a European Union Recovery Instrument to 

support the recovery in the aftermath of the COVID-19 crisis. 

148 

 
 
 
 
                                                 
Annual accounts of the European Union 2021 

3.5.  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. 

Treaty timetable1 

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 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 

149 

 
 
 
 
Annual accounts of the European Union 2021 

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. 

150 

 
Annual accounts of the European Union 2021 

3.6.  REVENUE 

3.6.1.  Own resources revenue 

The vast majority of revenue comes from own resources, which consist of the following categories:  

(1) 

(2) 

(3) 

(4) 

Traditional  own  resources  (TOR):  accounted  for  around  12%  of  own  resources  revenue  in 
2021. 

Value added tax (VAT) based resource: accounted for around 11% of own resources revenue 
in 2021. 

Resource based on plastic packaging waste that is not recycled: accounted for around 4% of 
own resources revenue in 2021. 

Gross  national  income  (GNI)  based  resource:  accounted  for  around  73%  of  own  resources 
revenue in 2021. 

Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the 
EU (Own Resources Decision 2020) specifies the categories of own resources and lays down the methods 
for their calculation. This decision entered into force on 1 June 2021 and was applied retroactively from 
1 January 2021.  

The  Own  Resources  Decision  2020  stipulates  that  the  total  amount  of  own  resources  allocated  to  the 
Union to cover annual appropriations for payments shall not exceed 1.40% of the sum of all the Member 
States’  GNIs.  In  addition,  the  decision  empowers  the  Commission  on  an  exceptional  basis  to  borrow 
temporarily up to EUR 750 billion in 2018 prices on the capital markets on behalf of the Union to address 
the  consequences  of  the  COVID-19  pandemic  through  the  recovery  instrument  NextGenerationEU.  The 
own  resources  ceiling  for  appropriations  for  payments  will  be  increased  temporarily  by  0.6  percentage 
points to cover all liabilities resulting from this borrowing. 

From  2021  the  other  revenues  of  the  EU  budget  include  the  financial  contributions  from  the  United 
Kingdom to cover its liabilities towards the EU and the EU liabilities towards the United Kingdom arising 
from the 2014-2020 period. 

3.6.2. 

Traditional own resources (TOR) 

TOR  consist  of  customs  duties  levied  on  imports  from  third  countries,  which  are  collected  by  Member 
States  on  behalf  of  the  EU.  However,  Member  States  retain  25%  to  cover  their  collection  costs.  All 
established  TOR  amounts  must  be  entered  in  one  of  the  following  accounts  kept  by  the  competent 
authorities: 

 

 

In  the  ordinary  accounts  provided  for  in  Article  6(3)  of  Council  Regulation  (EU,  Euratom)  No 
609/2014: all amounts recovered or guaranteed. 

In the separate accounts provided for in the same Article: all amounts not yet recovered and/or 
not guaranteed; amounts guaranteed but challenged may also be entered in this account. 

Member States must book TOR to the Commission’s account via their treasury or national central bank no 
later than the first working day after the 19th day of the second month following the month in which the 
entitlement was established (or recovered in the case of the separate account). 

3.6.3. 

Value added tax (VAT) 

The VAT own resource is calculated based on Member States’ VAT bases, which are harmonised for this 
purpose in accordance with EU rules.  A uniform call rate of 0.30% applies to each Member State’s total 
amount of VAT receipts collected for all taxable supplies divided by the weighted average VAT rate.  The 
VAT base is capped at 50% of each Member State’s GNI. 

151 

 
3.6.4.  Non-recycled plastic packaging waste 

Annual accounts of the European Union 2021 

A uniform call rate of EUR 0.80 per kilogram applies to the weight of plastic packaging waste generated 
in  each  Member  State  that  is  not  recycled.  The  plastic  packaging  waste  that  is  not  recycled  in  a  given 
year  is  calculated  as  the  difference  between  the  plastic  packaging  waste  generated  and  the  plastic 
packaging waste recycled in that year in a Member State. Bulgaria, the Czechia, Estonia, Greece, Spain, 
Croatia,  Italy,  Cyprus,  Latvia,  Lithuania,  Hungary,  Malta,  Poland,  Portugal,  Romania,  Slovenia  and 
Slovakia  are  entitled  to  specific  annual  lump  sum  reductions  in  their  respective  plastics  own  resource 
contributions. 

3.6.5.  Gross national income (GNI) 

The resource based on gross national income (GNI) is used to finance that part of the budget that is not 
covered  by  other  revenue  sources.  A  uniform  call  rate  is  levied  on  each  Member  State’s  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 
concerned,  by  means  of  an  amending  budget.  Differences  between  the  amounts  due  by  the  Member 
States  with  reference  to  the  actual  bases,  and  the  amounts  actually  paid  on  the  basis  of  the  (revised) 
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  concerned.  Corrections  may  still  be 
made to the actual VAT and GNI bases during the subsequent four years, unless a reservation is issued. 
These  reservations  represent  potential  claims  on  the  Member  States  for  uncertain  amounts,  as  their 
financial  impact  cannot  be  accurately  estimated.  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. 

3.6.6.  Gross reduction 

For  the  period  2021-2027,  the  following  Member  States  benefit  from  a  gross  reduction  in  their  annual 
GNI-based contributions of EUR 565 million for Austria, EUR 377 million for Denmark, EUR 3 671 million 
for  Germany,  EUR  1  921  million  for  the  Netherlands  and  EUR  1  069  million  for  Sweden.  These  gross 
reductions are measured in 2020 prices and financed by all Member States. 

152 

 
 
 
Annual accounts of the European Union 2021 

3.7.  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. 

2021 
(42 100) 

EUR million 
2020 
57 416 

(7 068) 
64 356 
(5 434) 
51 854 

53 108 
(1 046) 
(47 608) 
(4 449) 
(4 047) 
1 032 
(3 577) 
(6 587) 
 61 

(1 295) 
3 886 
(48 762) 
(46 171) 

8 258 
 (457) 
(17 547) 
(2 268) 
3 248 
3 873 
(4 441) 
(9 334) 
 (142) 

BUDGET RESULT OF THE YEAR 

3 230 

1 768 

In accordance with the Financial Regulation, the economic result of the year is calculated on the basis of 
accrual accounting principles and the 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 – 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,  
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.  

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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  (EU,  Euratom)  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. 

154 

 
 
Annual accounts of the European Union 2021 

IMPLEMENTATION OF THE 2021 EU BUDGET  

Please  see  section  4,  “Summary  of  budget  implementation"  in  the  Financial  Highlights  of  the  Year  for 
explanatory  notes  on  the  2021  budget  implementation  for  revenue  and  expenditure,  outstanding 
commitments and budget result. 

155 

 
 
IMPLEMENTATION OF EU BUDGET REVENUE  

Annual accounts of the European Union 2021 

5.1.  SUMMARY OF THE IMPLEMENTATION OF EU BUDGET REVENUE  

Income appropriations 

Entitlements established 

Revenue 

EUR million 

Receipts 
as % of 
budget 

Out- 
standing 

– 

 8 

– 

– 

– 

– 

– 

17 934 

 100 % 

115 819 

 100 % 

 11 

- 

5 831 

 100 % 

1 772 

 100 % 

– 

– 

– 

– 

 7 

 76 

Title 

Initial 
adopted 
budget 

1 

Final 
adopted 
budget 

Current 
year 

Carried 
over 

Total 

On entitle- 
ments of 
current year 

On entitle- 
ments 
carried over 

Total 

2 

3 

4 

5=3+4 

6 

7 

8=6+7 

9=8/2 

10=5-8 

156 867 

156 993 

158 629 

2 241 

160 869 

158 624 

 8 

158 632 

 101 % 

2 237 

0 

0 

 1 

– 

 1 

 1 

17 606 

17 348 

19 033 

2 241 

21 274 

19 028 

 1 

- 

 (0) 

19 037 

 110 % 

2 237 

1  Own resources 

  11 - Sugar levies 

  12 - Customs duties 

  13 - VAT 

  14 - GNI 

16 - Reduction of GNI-based contribution 
granted to certain Member States 

  17 - Plastic packaging waste 

2  Surpluses, balances and adjustments 

17 967 

17 941 

17 934 

121 294 

115 858 

115 819 

0 

0 

0 

– 

 11 

5 847 

5 831 

1 769 

1 772 

17 934 

17 934 

115 819 

115 819 

– 

– 

– 

– 

 7 

 52 

 11 

5 831 

1 779 

2 306 

 11 

5 831 

1 772 

2 195 

1 060 

3  Administrative revenue 

1 726 

1 726 

2 254 

 35 

2 230 

 129 % 

4  Financial revenue, default interest and fines 

 119 

 515 

2 082 

16 412 

18 494 

 573 

1 633 

 317 % 

16 861 

5 

6 

Budgetary guarantees, borrowing and lending 
operations 
Revenue, contributions and refunds related to 
Union policies 

0 

0 

55 501 

– 

55 501 

55 501 

– 

55 501 

- 

– 

7 348 

7 008 

25 403 

 711 

26 114 

19 359 

 468 

19 827 

 283 % 

6 287 

  Total 

166 060 

168 011  245 641 

19 422  265 063 

238 511 

1 085  239 596 

143 % 

25 467 

156 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
IMPLEMENTATION OF EU BUDGET EXPENDITURE  

Annual accounts of the European Union 2021 

6.1.  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 

Single Market, Innovation and 
Digital 

20 817 

 1 

20 817 

 33 

14 110 

34 960 

17 192 

 (521) 

16 670 

 137 

5 671 

22 478 

2  Cohesion, Resilience and Values 

52 862 

 358 

53 219 

 9 

399 098 

452 326 

66 154 

1 460 

67 614 

 426 

63 375 

131 414 

2a. Economic, social and territorial 
cohesion 

48 191 

 0 

48 191 

 8 

58 215 

106 413 

61 868 

1 987 

63 855 

 13 

15 760 

79 628 

  2b. Resilience and values 

4 671 

 358 

5 029 

 1 

340 883 

345 913 

4 286 

 (527) 

3 758 

 413 

47 615 

51 787 

3  Natural Resources and Environment 

58 569 

of which: Market-related 
expenditure and direct payments 

4  Migration and Border Management 

5  Security and Defence 

40 368 

2 279 

1 709 

 5 

 4 

58 574 

 475 

20 328 

79 377 

56 804 

 (783) 

56 021 

 499 

1 790 

58 310 

40 371 

 475 

 672 

41 518 

40 354 

 (51) 

40 303 

 493 

 672 

41 467 

 24 

2 303 

 (3) 

1 706 

– 

– 

– 

 65 

 35 

2 368 

2 686 

 (167) 

2 519 

1 741 

 671 

 43 

 714 

 4 

 0 

 210 

2 734 

 12 

 726 

 443 

17 474 

10 811 

 644 

11 455 

 37 

 766 

12 258 

6  Neighbourhood and the World 

16 097 

 934 

17 031 

7  European Public Administration 

10 448 

 (5) 

10 443 

 85 

 876 

11 404 

10 450 

 (5) 

10 444 

1 045 

 879 

12 368 

     of which: Administrative 
expenditure of the institutions 

4 313 

 (6) 

4 307 

 85 

 488 

4 879 

4 313 

 (6) 

4 307 

 695 

 489 

5 492 

O  Outside MFF 

– 

– 

– 

S 

Solidarity mechanisms within and 
outside the Union (Special 
instruments) 

1 471 

1 269 

2 739 

– 

– 

3 922 

3 922 

– 

– 

– 

– 

3 931 

3 931 

 20 

2 759 

1 293 

1 280 

2 574 

 0 

 20 

2 593 

  Total 

164 251 

2 582  166 833 

 602  438 896 

606 331  166 060 

1 951  168 011 

2 149 

76 653 

246 812 

157 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.2.    MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Union 2021 

MFF Heading 

Total 
appropr.  
available 

Commitments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2022 

from final 
adopted 
budget 

from 
assigned 
revenue 

Total 

1 

2 

Single Market, Innovation 
and Digital 
Cohesion, Resilience and 
Values 
2a. Economic, social and 
territorial cohesion 

3 

4 

Natural Resources and 
Environment 
of which: Market-related 
expenditure and direct 
payments 
Migration and Border 
Management 

6 

7 

Neighbourhood and the 
World 
European Public 
Administration 
     of which: Administrative 
expenditure of the 
institutions 

1 

2 

3 

4 

5=2+3 
+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

34 960 

20 700 

 33 

4 950 

25 683 

 73 % 

 113 

9 160 

9 273 

 4 

452 326 

6 760 

 9 

145 178 

151 947 

 34 % 

 0 

253 653 

253 653 

46 460 

  2b. Resilience and values 

345 913 

5 009 

106 413 

1 751 

 8 

 1 

46 709 

48 468 

 46 % 

– 

11 240 

11 240 

46 439 

98 469 

103 479 

 30 % 

 0 

242 413 

242 413 

 20 

79 377 

56 094 

 470 

3 160 

59 723 

 75 % 

 686 

16 779 

17 466 

1 794 

 5 

 389 

2 188 

41 518 

39 679 

 470 

 669 

40 818 

 98 % 

 686 

 2 

 689 

 6 

 5 

5  Security and Defence 

1 741 

1 597 

2 368 

1 626 

17 474 

15 130 

– 

– 

– 

 19 

 28 

1 644 

 69 % 

1 625 

 93 % 

– 

– 

 47 

 7 

 47 

 677 

 7 

 109 

 242 

15 372 

 88 % 

1 900 

 200 

2 100 

 2 

11 404 

10 286 

 85 

 559 

10 930 

 96 % 

 22 

 315 

 337 

 135 

4 879 

4 171 

 85 

 335 

4 590 

 94 % 

 22 

 153 

 175 

 114 

O  Outside MFF 

3 922 

– 

S 

Solidarity mechanisms 
within and outside the 
Union (Special instruments) 

2 759 

1 223 

– 

– 

 199 

 199 

 5 % 

– 

3 723 

3 723 

– 

– 

1 223 

 44 % 

1 343 

 7 

1 350 

 173 

  Total 

606 331  113 415 

 596  154 334  268 345  44 % 

4 065  283 891  287 956  49 354 

 5 

 671 

50 030 

158 

EUR million 

Appropriations lapsing 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

13=10+ 
11+12 

– 

– 

– 

– 

 1 

 4 

 267 

46 726 

 265 

46 705 

 1 

 22 

 0 

 0 

 0 

 1 

 2 

 1 

– 

 11 

 677 

 109 

 2 

 137 

 115 

– 

 13 

 186 

– 

– 

– 

– 

– 

– 

– 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.3.    MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS 

Annual accounts of the European Union 2021 

MFF Heading 

Total 
appropr. 
available 

Payments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2022 
from 
assigned 
revenue 

from final 
adopted 
budget 

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 

1 

Single Market, Innovation and 
Digital 

22 478 

16 495 

 115 

1 922 

18 532 

 82 % 

 151 

3 744 

3 895 

2  Cohesion, Resilience and Values 

131 414 

67 577 

 239 

58 639 

126 454 

 96 % 

 27 

4 733 

4 760 

2a. Economic, social and 
territorial cohesion 

79 628 

63 849 

 11 

11 731 

75 591 

 95 % 

 3 

4 029 

4 032 

  2b. Resilience and values 

51 787 

3 728 

 228 

46 908 

50 863 

 98 % 

 24 

 704 

 728 

58 310 

55 312 

 492 

1 027 

56 831 

 97 % 

 693 

 762 

1 455 

41 467 

39 605 

 486 

 669 

40 760 

 98 % 

 687 

 2 

 689 

3 

4 

Natural Resources and 
Environment 
     of which: Market-related 
expenditure and direct payments 
Migration and Border 
Management 

5  Security and Defence 

 726 

 703 

2 734 

2 515 

 3 

 0 

 29 

2 547 

 93 % 

 4 

 708 

 97 % 

 3 

 5 

 181 

 184 

 7 

 12 

6  Neighbourhood and the World 

12 258 

10 443 

 34 

 458 

10 935 

 89 % 

1 008 

 308 

1 317 

7  European Public Administration 

12 368 

9 316 

 938 

 452 

10 705 

 87 % 

 991 

 422 

1 412 

 138 

 108 

     of which: Administrative 
expenditure of the institutions 

5 492 

3 537 

 618 

 281 

4 436 

 81 % 

 653 

 205 

 858 

 117 

 77 

O  Outside MFF 

3 931 

– 

S 

Solidarity mechanisms within 
and outside the Union (Special 
instruments) 

2 593 

1 208 

– 

 0 

 61 

 61 

 2 % 

– 

3 870 

3 870 

 14 

1 223 

 47 % 

1 365 

 5 

1 371 

– 

– 

– 

– 

 25 

 10 

 3 

 7 

 17 

 11 

 2 

 6 

 3 

 22 

 187 

 2 

 185 

 7 

 7 

 1 

 0 

 3 

Total 

13=10+ 
11+12 

 51 

 200 

 5 

 195 

 24 

 18 

 3 

 6 

 6 

 251 

 198 

– 

– 

 5 

 3 

 0 

 3 

 0 

 0 

 0 

 0 

 0 

 5 

 3 

– 

– 

  Total 

246 812  163 568  1 821  62 607  227 996  92 % 

4 244  14 032  18 275 

 199 

 327 

 14 

 541 

159 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.4.    MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) 

Annual accounts of the European Union 2021 

Commitments outstanding at the end of previous year 

Commitments of the current year 

MFF Heading 

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 

2 

3 

4=1+2+3 

5 

6 

7 

8=5+6+7 

9=4+8 

 (777) 

(13 632) 

27 951 

25 683 

(4 900) 

 (17) 

20 766 

48 717 

1  Single Market, Innovation and Digital 

2  Cohesion, Resilience and Values 

2a. Economic, social and territorial 
cohesion 

  2b. Resilience and values 

3  Natural Resources and Environment 

     of which: Market-related 
expenditure and direct payments 

4  Migration and Border Management 

5  Security and Defence 

1 

42 361 

183 747 

180 084 

3 662 

40 860 

 286 

4 950 

1 503 

 (205) 

(69 986) 

113 555 

151 947 

(56 468) 

 (123) 

(68 428) 

111 534 

48 468 

(7 163) 

 (82) 

(1 559) 

2 021 

103 479 

(49 305) 

 (61) 

(15 269) 

25 530 

59 723 

(41 562) 

 (10) 

 (68) 

 (23) 

 (76) 

 200 

40 818 

(40 685) 

(1 804) 

 (498) 

3 078 

 981 

1 644 

1 625 

 (743) 

 (209) 

6  Neighbourhood and the World 

28 785 

 (687) 

(7 821) 

20 278 

15 372 

(3 115) 

7  European Public Administration 

     of which: Administrative expenditure 
of the institutions 

O  Outside MFF 

S 

Solidarity mechanisms within and 
outside the Union (Special instruments) 

 981 

 627 

 11 

 0 

 (124) 

 (857) 

 (92) 

 (535) 

 (2) 

– 

 (3) 

 (0) 

 0 

– 

 6 

– 

10 930 

(9 848) 

4 590 

(3 901) 

 199 

 (58) 

1 223 

(1 223) 

 (1) 

 (0) 

 (0) 

 (0) 

– 

– 

 (0) 

 (0) 

 (6) 

 (6) 

– 

– 

95 478 

209 033 

41 305 

152 839 

54 174 

18 161 

 133 

 901 

1 415 

56 195 

43 691 

 333 

3 980 

2 397 

12 257 

32 535 

1 075 

1 076 

 684 

 140 

– 

 684 

 147 

– 

  Total 

303 197 

(1 946)  (109 870) 

191 381 

268 345 

(118 126) 

 (24) 

150 194 

341 575 

160 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.5.    MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN  

Annual accounts of the European Union 2021 

<2015 

2015 

2016 

2017 

2018 

2019 

2020 

2021 

Total 

EUR million 

1  Single Market, Innovation and Digital 

2  Cohesion, Resilience and Values 

 579 

2 546 

 497 

 404 

1 020 

2 025 

3 632 

8 014 

11 812 

21 138 

48 717 

 911 

8 637 

16 907 

33 036 

51 058 

95 534 

209 033 

3  Natural Resources and Environment 

 328 

1 222 

1 128 

1 065 

2 486 

7 231 

12 071 

18 161 

43 691 

4  Migration and Border Management 

5  Security and Defence 

6  Neighbourhood and the World 

7  European Public Administration 

O  Outside MFF 

S 

Solidarity mechanisms within and outside the Union (Special 
instruments) 

 17 

 37 

 2 

 4 

 66 

 47 

 195 

 129 

 517 

 159 

 865 

 241 

1 414 

 904 

 364 

1 415 

3 980 

2 397 

1 258 

 642 

1 185 

2 139 

3 458 

5 493 

6 041 

12 319 

32 535 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

– 

– 

– 

 0 

 1 

– 

 0 

 6 

– 

1 075 

 140 

1 076 

 147 

– 

– 

  Total 

4 765 

2 771 

4 357 

14 190 

27 158 

54 881 

82 766  150 687 

341 575 

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. 

161 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

6.6.    MFF: OUTSTANDING COMMITMENTS BY APPROPRIATIONS TYPE 

From budget appropriations 

From assigned revenue appropriations 

Commitm. 
carried 
forward 
from 2020 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

Amount 
remaining 
to be 
settled 
5=1+2+3-
4 

Commitm. 
carried 
forward 
from 2020 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

6 

7 

8 

9 

Amount 
remaining 
to be 
settled 
10=6+7+8
-9 

EUR million 

Total 
commitm. 
outstanding 
at the end 
of 2021 

11=5+10 

1  Single Market, Innovation and Digital 

37 889 

 (580) 

20 733 

16 702 

41 340 

4 472 

 (215) 

4 950 

1 830 

7 377 

48 717 

2  Cohesion, Resilience and Values 

160 278 

 (198) 

6 769 

71 281 

95 569 

23 468 

 (8) 

145 178 

55 174 

113 465 

209 033 

2a. Economic, social and territorial 
cohesion 

157 017 

 (123) 

1 759 

67 174 

91 479 

23 067 

 (0) 

46 709 

8 416 

61 360 

152 839 

  2b. Resilience and values 

3 261 

 (75) 

5 009 

4 106 

4 090 

3  Natural Resources and Environment 

40 438 

 (61) 

56 563 

56 086 

40 854 

 401 

 423 

 (8) 

98 469 

46 757 

52 105 

56 195 

 (0) 

3 160 

 745 

2 837 

43 691 

   of which: Market related expenditure 
and direct payments 

 286 

 (10) 

40 149 

40 091 

 333 

– 

– 

 669 

 669 

4  Migration and Border Management 

4 679 

 (64) 

1 626 

2 480 

3 760 

5  Security and Defence 

1 489 

 (22) 

1 597 

 700 

2 364 

 271 

 13 

 (3) 

 (1) 

6  Neighbourhood and the World 

27 712 

 (670) 

15 130 

10 506 

31 666 

1 074 

 (17) 

7  European Public Administration 

 901 

 (92) 

10 371 

10 215 

     of which: Administrative 
expenditure of the institutions 

O  Outside MFF 

S 

Solidarity mechanisms within and 
outside the Union (Special instruments) 

 591 

 (66) 

4 256 

4 155 

– 

– 

 0 

– 

1 223 

1 223 

 964 

 626 

– 

– 

 80 

 36 

 11 

 19 

 28 

 242 

 559 

 67 

 8 

 429 

 490 

 (37) 

 (32) 

 335 

 281 

 (2) 

 199 

 61 

 147 

– 

 219 

 33 

 869 

 111 

 57 

 333 

3 980 

2 397 

32 535 

1 076 

 684 

 147 

– 

  Total 

273 386 

(1 687)  114 011  169 192 

216 518 

29 811 

 (283)  154 334 

58 805 

125 057 

341 575 

162 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.7.    DETAILED MFF: BREAKDOWN AND CHANGES IN COMMITMENT AND PAYMENT 

APPROPRIATIONS 

Annual accounts of the European Union 2021 

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 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

7 

8 

9=7+8 

10 

11 

Programme 

1  Horizon Europe 

  Euratom 

Thermonuclear Experimental 
Reactor (ITER) 

  Other actions 

  Pilot projects and prep. actions 

InvestEU Fund 

  CEF - Transport 

  CEF - Energy 

  CEF - Digital 

  Digital Europe 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 
  Single Market 

  EU Anti-Fraud 

  Taxation 

  Customs 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 

11 507 

 1 

11 508 

 266 

 864 

– 

 10 

 654 

1 785 

 785 

 277 

1 130 

 188 

 375 

 17 

 26 

 575 

 24 

 36 

 127 

 121 

 8 

 8 

 (1) 

– 

– 

 (0) 

 3 

 0 

– 

– 

 1 

 1 

 (3) 

– 

 (1) 

 8 

– 

 (1) 

 (1) 

 (3) 

 1 

 (3) 

 265 

 864 

– 

 10 

 657 

1 786 

 785 

 277 

1 130 

 189 

 372 

 17 

 25 

 583 

 24 

 35 

 126 

 118 

 9 

 5 

Total 
approp. 
available 

6=3+ 
4+5 
18 278 

 349 

 881 

 490 

 10 

7 168 

1 807 

 794 

 279 

1 161 

 203 

 372 

 18 

 33 

6 750 

 73 

 17 

 490 

– 

6 511 

 21 

 9 

 1 

 31 

 13 

– 

– 

 8 

9 835 

 (905) 

8 930 

 254 

 614 

– 

 14 

 18 

– 

– 

 (2) 

 272 

 614 

– 

 12 

1 081 

 (142) 

 939 

1 428 

 (49) 

1 380 

 471 

 207 

 159 

 188 

 375 

 23 

 21 

 71 

 (50) 

 (69) 

 1 

 (3) 

 (6) 

 6 

 543 

 158 

 90 

 189 

 372 

 18 

 27 

 44 

 627 

 547 

 (121) 

 427 

 1 

 1 

 4 

 10 

 0 

– 

 25 

 36 

 130 

 128 

 9 

 5 

 24 

 33 

 86 

 121 

 8 

 14 

 (8) 

 3 

 6 

 (3) 

 (1) 

 (5) 

 16 

 36 

 93 

 118 

 7 

 9 

 125 

2 102 

1 652 

 728 

2 379 

 20 

 12 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 1 

– 

– 

– 

– 

– 

– 

– 

– 

– 

163 

 81 

 45 

 0 

– 

– 

– 

 1 

 1 

 1 

 0 

– 

– 

 0 

– 

 4 

– 

 0 

 0 

– 

– 

– 

 4 

EUR million 

Total 
approp. 
available 

12=9+ 
10+11 

12 937 

 444 

 659 

 377 

 12 

1 662 

1 398 

 556 

 164 

 94 

 203 

 372 

 18 

 27 

 488 

 17 

 38 

 100 

 128 

 7 

 9 

3 926 

 127 

 45 

 377 

– 

 724 

 18 

 12 

 6 

 4 

 13 

– 

– 

 0 

 57 

 1 

 3 

 8 

 10 

 0 

– 

  European Space Programme 

1 997 

 (20) 

1 977 

 339 

2 722 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

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 

EUR million 

Total 
approp. 
available 

12=9+ 
10+11 

 20 

 (1) 

 56 

– 

– 

– 

 1 

– 

 57 

– 

 36 

 0 

 7 

 (0) 

 43 

– 

– 

– 

 1 

– 

 44 

– 

 1 

20 817 

 33 

14 110 

34 960 

17 192 

 (521) 

16 670 

 137 

5 671 

22 478 

  European Social Fund Plus (ESF+) * 

12 812 

 0 

12 812 

  Decentralised agencies 

  Pilot projects & preparatory actions 
Total Heading 1: Single Market, 
Innovation and Digital 

2  Regional Development (ERDF) * 

  Cohesion Fund 

Cohesion Fund contrib. to CEF-
Transport 

  Pilot projects and prep. actions 

 36 

 1 

20 817 

29 240 

4 696 

1 442 

– 

Support to Turkish-Cypriot 
Community 

  European Recovery and Resilience 

  Pericles IV 

  EU Recovery 

  RescEU 

  EU4Health 

Emergency support within the Union 
(ESI) 

  Decentralised agencies 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 

  Employment and Social Innovation 

  Erasmus+ 

  European Solidarity Corps (ESC) 

  Creative Europe 

Justice 

  Rights and Values 

  Decentralised agencies 

 32 

 116 

 1 

 40 

 90 

 327 

– 

 258 

– 

 11 

 102 

2 663 

 136 

 306 

 46 

 97 

 220 

 (0) 

29 240 

 0 

4 696 

– 

– 

1 442 

– 

– 

– 

– 

 (35) 

 92 

 2 

 232 

 67 

– 

– 

 0 

 0 

– 

– 

 0 

 2 

 32 

 116 

 1 

 5 

 183 

 329 

 232 

 324 

– 

 11 

 103 

2 663 

 136 

 306 

 47 

 99 

– 

– 

– 

– 

 8 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

35 562 

64 803 

33 871 

3 505 

37 376 

1 363 

6 059 

10 595 

(2 097) 

8 498 

 12 

1 455 

1 250 

 (228) 

1 022 

 0 

 0 

 4 

 (1) 

 3 

21 277 

34 097 

16 147 

 809 

16 956 

 2 

 34 

 35 

 4 

–  337 969  338 086 

 109 

 0 

– 

 1 

 5 

2 085 

2 267 

 10 

 439 

 18 

– 

 1 

 339 

 671 

 343 

– 

 13 

 12 

 114 

 1 

 40 

 194 

 128 

 (27) 

 (0) 

 (35) 

 (29) 

 (68) 

 39 

 82 

 0 

 5 

 165 

 60 

 248 

 2 

 10 

 85 

 68 

 1 

 (0) 

 (30) 

 316 

 3 

 10 

 55 

 305 

2 968 

2 408 

 (419) 

1 989 

 12 

 14 

 6 

 2 

 4 

 147 

 320 

 53 

 101 

 225 

 127 

 237 

 45 

 88 

 220 

 (30) 

 (104) 

 (10) 

 (27) 

 (17) 

 96 

 133 

 35 

 60 

 203 

 5 

 2 

– 

– 

 6 

 0 

 1 

– 

– 

 17 

 1 

10 076 

47 457 

1 351 

 13 

 0 

9 852 

1 035 

 3 

4 319 

21 280 

 1 

 40 

46 386 

46 469 

 0 

– 

 23 

 4 

 0 

 5 

 204 

 66 

– 

– 

– 

 1 

 7 

 2 

 2 

 0 

 1 

 2 

 18 

– 

 2 

 13 

 680 

 17 

 16 

 6 

 2 

 5 

 334 

 3 

 12 

 69 

2 676 

 115 

 151 

 42 

 63 

 210 

 90 

 224 

 314 

 379 

 439 

1 132 

 (1) 

 220 

 1 

164 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Programme 

  Other actions 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 
Total Heading 2: Cohesion, 
Resilience and Values 
3  Agricultural Guarantees 

Other progr. of Natural Resources 
and Environment 
Agricultural Fund for Rural 
Development 

  Maritime and Fisheries 

  Fisheries (SFPA and RFMO) 

  Decentralised agencies 

  Pilot projects and prep. actions 

  Environment and Climate (LIFE) 

Just Transition Fund 
Loan facility under Just Transition 
Mechanism 

  Decentralised agencies 

  Pilot projects and prep. actions 

Total Heading 3: Natural Resources 
and Environment 

4  Asylum, Migration and Integration  

  Decentralised agencies 

  Pilot projects and prep. actions 
Border Mngmt. (IBMF) - Border 
mngmt and visa 
Border Mngmt. (IBMF) - Customs 
equipment 

  Decentralised agencies 

Annual accounts of the European Union 2021 

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 

EUR million 

Total 
approp. 
available 

12=9+ 
10+11 

 9 

 32 

 184 

– 

 (2) 

 9 

 30 

– 

 184 

– 

– 

– 

 1 

 0 

 2 

 10 

 30 

 7 

 51 

 (1) 

 (23) 

 7 

 28 

 185 

 162 

 (4) 

 158 

– 

– 

– 

 1 

 0 

 2 

 8 

 28 

 160 

52 862 

 358 

53 219 

 9  399 098  452 326 

66 154 

1 460 

67 614 

 426 

63 375 

131 414 

40 368 

 4 

40 371 

 475 

 672 

41 518 

40 354 

 (51) 

40 303 

 493 

 672 

41 467 

 75 

 (75) 

– 

15 345 

 (4) 

15 341 

 761 

 74 

 17 

– 

 739 

1 137 

– 

 51 

 4 

 (2) 

 78 

 4 

– 

 0 

 759 

 152 

 21 

– 

 739 

 (0) 

1 137 

– 

 (0) 

 (0) 

– 

 50 

 4 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 72 

 (72) 

– 

8 492 

23 833 

15 022 

 (673) 

14 349 

 239 

– 

 1 

– 

 3 

 829 

 (134) 

 998 

 152 

 22 

– 

 73 

 17 

 6 

 742 

 371 

10 868 

12 005 

 46 

 7 

– 

 46 

 57 

 4 

 0 

– 

 51 

 9 

 77 

 4 

 (3) 

 72 

 1 

– 

 (0) 

 (4) 

 695 

 150 

 21 

 3 

 443 

 1 

– 

 50 

 5 

– 

 2 

 1 

– 

– 

– 

 4 

– 

– 

– 

– 

– 

 817 

 151 

– 

 1 

– 

 2 

 94 

 46 

 7 

– 

– 

15 168 

 847 

 150 

 22 

 3 

 449 

 96 

 46 

 57 

 5 

58 569 

 5 

58 574 

 475 

20 328 

79 377 

56 804 

 (783) 

56 021 

 499 

1 790 

58 310 

 873 

 138 

– 

 398 

 135 

 734 

 22 

– 

– 

 895 

 138 

– 

 34 

 432 

– 

 (32) 

 135 

 703 

– 

– 

– 

– 

– 

– 

165 

 8 

 22 

 0 

 9 

– 

 25 

 903 

 160 

 0 

1 301 

 (76) 

1 225 

 138 

– 

– 

 0 

 138 

 0 

 442 

 488 

 (86) 

 402 

 135 

 728 

 33 

 (33) 

 0 

 726 

 28 

 754 

 2 

– 

– 

 2 

– 

– 

 9 

 22 

 0 

 154 

– 

 25 

1 236 

 160 

 0 

 558 

 0 

 779 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

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 

EUR million 

Total 
approp. 
available 

12=9+ 
10+11 

Total Heading 4: Migration and 
Border Management 

5  Internal Security Fund (ISF) 

  Nuclear decommissioning 

Nuclear Safety and 
decommissioning 

  Decentralised agencies 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 

  European Defence (Research) 

  European Defence (Non Research) 

  Military Mobility 

  Pilot projects and prep. actions 
Total Heading 5: Security and 
Defence 
Neighbourhood, Developm. and Intl. 
Cooperation 
Instrument for Nuclear Safety 
(EINS) 

6 

2 279 

 24 

2 303 

 176 

 73 

 69 

 198 

– 

 22 

 283 

 662 

 227 

– 

 2 

– 

– 

 (5) 

– 

 (1) 

 40 

 (40) 

– 

– 

 178 

 73 

 69 

 193 

– 

 21 

 323 

 623 

 227 

– 

1 709 

 (3) 

1 706 

12 071 

 340 

12 411 

 38 

– 

 38 

  Humanitarian Aid (HUMA) 

1 503 

 665 

2 168 

Common Foreign and Security Policy 
(CFSP) 
Overseas Countries and Territories 
(OCT) 

  Other actions 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 

 352 

 67 

 72 

 0 

 93 

 0 

– 

 (53) 

 (0) 

 (1) 

 352 

 67 

 19 

– 

 92 

  Pre-Accession Assistance (IPA III) 

1 901 

 (18) 

1 884 

  Pilot projects and prep. actions 

– 

– 

– 

Total Heading 6: Neighbourhood 
and the World 

16 097 

 934 

17 031 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

166 

 65 

2 368 

2 686 

 (167) 

2 519 

 3 

– 

 1 

 7 

– 

 0 

 7 

 17 

– 

– 

 182 

 181 

 73 

 70 

 50 

 78 

 (15) 

 (4) 

 3 

 165 

 46 

 81 

 200 

 198 

 (5) 

 193 

– 

 21 

 330 

 639 

 227 

– 

– 

 21 

 13 

 109 

 17 

 5 

 1 

– 

 (12) 

 1 

 21 

 1 

 90 

 199 

 (15) 

 0 

 43 

 2 

 5 

 714 

 35 

1 741 

 671 

 4 

 0 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

 0 

 210 

2 734 

 4 

– 

 1 

 7 

– 

 0 

 0 

 0 

– 

 0 

 169 

 46 

 82 

 200 

 1 

 21 

 2 

 199 

 2 

 5 

 12 

 726 

 216 

12 627 

6 514 

 167 

6 681 

 24 

 234 

6 939 

 3 

 39 

 57 

– 

 0 

 0 

 1 

 40 

 33 

 (16) 

 17 

2 207 

1 900 

 507 

2 407 

 409 

 329 

 18 

 346 

 67 

 19 

 0 

 94 

 33 

 42 

 0 

 78 

 (26) 

 (24) 

 2 

 (7) 

 8 

 17 

 2 

 71 

 127 

2 011 

1 882 

 22 

1 905 

– 

– 

– 

– 

– 

 1 

 5 

 0 

– 

– 

– 

– 

 7 

– 

 3 

 61 

 41 

– 

 0 

 0 

 1 

 20 

2 473 

 388 

 8 

 17 

 2 

 72 

 427 

– 

2 338 

– 

 443 

17 474 

10 811 

 644 

11 455 

 37 

 766 

12 258 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

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 

7  Staff Pensions 

2 179 

(Pensions former Members) EP 

(Pensions former Members) ECC 
(Pensions former Members) 
Commission 
(Pensions former Members) CJEU 

(Pensions former Members) ECA 
(Pensions former Members) 
Ombudsman 
(Pensions former Members) EDPS 

  European schools 

  Remuneration statutory staff 

  Remuneration external staff 

  Members - Salaries and allowances 

  Members - Temporary allowances 

  Recruitment costs 

  Termination of service 

  Training costs 

  Social and Mobility 

Information and comm. technology 

  Rents and purchases 

Linked to buildings 

  Security 

  Mission and representation 

  Meetings, committees, conference 

  Official journal 

  Publications 

  Acquisition of information 

 11 

 1 

 7 

 12 

 5 

 0 

 0 

 197 

2 509 

 242 

 15 

 3 

 29 

 8 

 18 

 22 

 242 

 302 

 100 

 63 

 61 

 31 

 3 

 10 

 4 

– 

– 

 0 

– 

 (1) 

 0 

– 

 0 

– 

2 179 

 11 

 1 

 7 

 12 

 5 

 0 

 0 

 197 

 (14) 

2 495 

 6 

– 

– 

 (3) 

– 

 (0) 

 2 

 55 

 16 

 (13) 

 (0) 

 (36) 

 (25) 

 (0) 

 3 

 (0) 

 248 

 15 

 3 

 26 

 8 

 17 

 24 

 298 

 318 

 86 

 63 

 25 

 6 

 2 

 13 

 4 

– 

– 

– 

– 

– 

– 

– 

– 

 20 

 67 

 64 

 0 

– 

 1 

– 

 5 

 28 

 84 

 39 

 28 

 11 

 3 

 4 

 0 

 4 

 0 

2 179 

2 179 

 11 

 1 

 7 

 12 

 5 

 0 

 0 

 11 

 1 

 7 

 12 

 5 

 0 

 0 

 216 

 197 

– 

– 

 0 

– 

 (1) 

 0 

– 

 0 

– 

2 179 

 11 

 1 

 7 

 12 

 5 

 0 

 0 

 197 

2 561 

2 509 

 (14) 

2 495 

– 

– 

– 

– 

– 

– 

– 

– 

 1 

 0 

 312 

 242 

 15 

 3 

 27 

 8 

 23 

 52 

 381 

 357 

 114 

 75 

 28 

 9 

 2 

 17 

 4 

 15 

 3 

 29 

 8 

 18 

 22 

 242 

 302 

 100 

 63 

 61 

 31 

 3 

 10 

 4 

 6 

– 

– 

 (3) 

– 

 (0) 

 2 

 55 

 16 

 (13) 

 (0) 

 (36) 

 (25) 

 (0) 

 3 

 (0) 

 248 

 38 

 15 

 3 

 26 

 8 

 17 

 24 

 0 

– 

 3 

– 

 11 

 12 

 298 

 142 

 318 

 86 

 63 

 25 

 6 

 2 

 13 

 4 

 5 

 51 

 26 

 7 

 6 

 1 

 7 

 1 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

167 

– 

– 

– 

– 

– 

– 

– 

– 

 20 

 67 

 64 

 0 

– 

 1 

– 

 5 

 29 

 84 

 39 

 28 

 11 

 3 

 4 

 0 

 4 

 0 

EUR million 

Total 
approp. 
available 

12=9+ 
10+11 

2 179 

 11 

 1 

 7 

 12 

 5 

 0 

 0 

 217 

2 561 

 350 

 15 

 3 

 31 

 8 

 34 

 64 

 523 

 361 

 165 

 100 

 35 

 16 

 3 

 24 

 5 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

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 

 4 

 11 

 28 

 20 

– 

 2 

 13 

 (3) 

 (2) 

– 

 6 

 24 

 24 

 18 

– 

4 313 

 (6) 

4 307 

10 448 

 (6) 

10 443 

– 

– 

– 

– 

– 

– 

– 

– 

– 

1 273 

 (429) 

 844 

 197 

– 

 197 

– 

1 698 

1 698 

1 471 

1 269 

2 739 

– 

– 

– 

– 

– 

 85 

 85 

– 

– 

– 

– 

– 

– 

– 

 0 

 8 

 17 

 7 

– 

 6 

 32 

 41 

 25 

– 

 4 

 11 

 28 

 20 

 1 

 2 

 13 

 (3) 

 (2) 

 0 

 6 

 24 

 24 

 18 

 1 

 11 

 16 

 3 

 8 

 0 

 0 

 8 

 17 

 7 

– 

 488 

4 879 

4 313 

 (6) 

4 307 

 695 

 489 

5 492 

 876 

11 404 

10 450 

 (5) 

10 444  1 045 

 879 

12 368 

3 816 

3 816 

 106 

 106 

3 922 

3 922 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 844 

1 273 

 (408) 

 866 

 20 

 217 

 20 

 (10) 

 10 

– 

1 698 

– 

1 698 

1 698 

 20 

2 759 

1 293 

1 280 

2 574 

– 

– 

– 

– 

 0 

– 

 0 

3 819 

 112 

3 931 

– 

 20 

– 

 20 

3 819 

 112 

3 931 

 866 

 30 

1 698 

2 593 

EUR million 

Total 
approp. 
available 

12=9+ 
10+11 

 17 

 48 

 44 

 33 

 1 

Programme 

  Studies and investigations 

General equipment, vehicle, 
furniture 
Linguistic external services 

  Other administrative expenditure 

  Pilot projects and prep. actions 

Administrative expenditure of Other 
Institutions 
Total Heading 7: European Public 
Administration 

O  Innovation Fund (IF) 

  Other actions 

S 

  Total Heading O: Outside MFF 
Solidarity and Emergency Aid 
(SEAR) 
European Globalisation Adjustment 
(EGF) 

  Brexit Adjustment Reserve 
Total Heading S: Solidarity 
mechanisms within and outside the 
Union (Special instruments) 

  Total 
246 812 
* This MFF programme includes the complementary financial envelope from the NextGenerationEU for the REACT-EU package. Please consult the chapter 1.1 Multiannual Financial 
Framework  2021-2027  of  the  Notes  to  the  Budgetary  Implementation  Reports.  The  paragraph  on  Heading  2  details  the  contribution  of  this  MFF  programme  to  the  REACT-EU 
package. 

 602  438 896  606 331  166 060 

1 951  168 011  2 149 

2 582  166 833 

164 251 

76 653 

168 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.8.  DETAILED MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Union 2021 

Commitments made 

Appropriations carried over 
to 2022 

Appropriations lapsing 

  EUR million 

Programme 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

18 278 

11 394 

 349 

 265 

 20 

 12 

 76 % 

 113 

4 263 

4 376 

1  Horizon Europe 

  Euratom 

Thermonuclear Experimental 
Reactor (ITER) 

  Other actions 

  Pilot projects and prep. actions 

InvestEU Fund 

  CEF - Transport 

  CEF - Energy 

  CEF - Digital 

  Digital Europe 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 
  Single Market 

  EU Anti-Fraud 

  Taxation 

  Customs 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 

 881 

 864 

 490 

 10 

– 

 10 

7 168 

 657 

1 807 

1 786 

 794 

 279 

 784 

 277 

1 161 

1 129 

 203 

 372 

 18 

 33 

 189 

 372 

 17 

 25 

 627 

 582 

 25 

 36 

 130 

 128 

 9 

 5 

 24 

 35 

 126 

 118 

 9 

 5 

  European Space Programme 

2 102 

1 977 

  Decentralised agencies 

Pilot projects & preparatory 
actions 

 57 

– 

 56 

– 

5=2+3 
+4 
13 897 

2 484 

 11 

 1 

 82 

– 

 288 

 82 % 

 865 

 98 % 

 82 

 17 % 

 10 

 100 % 

2 176 

2 833 

 40 % 

 20 

1 806 

 100 % 

 5 

 0 

 789 

 99 % 

 277 

 100 % 

 31 

1 160 

 100 % 

 8 

– 

– 

 6 

 197 

 97 % 

 372 

 100 % 

 18 

 100 % 

 31 

 96 % 

 17 

 600 

 96 % 

– 

 0 

 0 

 5 

 0 

– 

 24 

 35 

 126 

 123 

 98 % 

 97 % 

 97 % 

 96 % 

 9 

 5 

 100 % 

 100 % 

 102 

2 079 

 99 % 

 1 

– 

 57 

 100 % 

– 

- 

169 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 1 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

Total 

13=10+ 
11+12 

 1 

 0 

 0 

 0 

– 

 0 

 0 

 1 

 0 

 1 

– 

– 

 0 

 0 

 0 

– 

 0 

– 

 0 

 (0) 

– 

– 

 0 

– 

– 

– 

 (0) 

 (0) 

 0 

 0 

– 

– 

– 

– 

– 

 (0) 

– 

– 

 1 

 0 

 0 

– 

 0 

 0 

 0 

 0 

– 

– 

 1 

 0 

 0 

– 

– 

 0 

 0 

 1 

 0 

 1 

– 

– 

 0 

– 

 1 

 0 

 0 

– 

 0 

 0 

 0 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 61 

 16 

 61 

 16 

 408 

 408 

– 

– 

4 338 

4 338 

 1 

 4 

 1 

 0 

 5 

– 

– 

 1 

 1 

 4 

 1 

 0 

 5 

– 

– 

 1 

 26 

 26 

 1 

 1 

 4 

 5 

 0 

– 

 23 

 0 

– 

 1 

 1 

 4 

 5 

 0 

– 

 23 

 0 

– 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Commitments made 

Appropriations carried over 
to 2022 

Appropriations lapsing 

  EUR million 

Programme 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

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 

Total Heading 1: Single Market, 
Innovation and Digital 

34 960 

20 700 

 33 

4 950 

25 683 

73 % 

 113 

9 160 

9 273 

 4 

2  Regional Development (ERDF) * 

64 803 

  Cohesion Fund 

6 059 

 238 

 16 

Cohesion Fund contrib. to CEF-
Transport 

  Pilot projects and prep. actions 
European Social Fund Plus 
(ESF+) * 
Support to Turkish-Cypriot 
Community 
European Recovery and 
Resilience 
  Pericles IV 

  EU Recovery 

  RescEU 

  EU4Health 

Emergency support within the 
Union (ESI) 

  Decentralised agencies 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 
Employment and Social 
Innovation 
  Erasmus+ 

  European Solidarity Corps (ESC) 

  Creative Europe 

Justice 

  Rights and Values 

  Decentralised agencies 

  Other actions 

1 455 

1 442 

 0 

34 097 

 34 

– 

 54 

 32 

338 086 

 116 

 1 

 5 

2 267 

 339 

 1 

 5 

 183 

 329 

 671 

 232 

 343 

 324 

– 

 13 

 114 

– 

 11 

 89 

2 968 

2 663 

 147 

 320 

 53 

 101 

 225 

 10 

 136 

 306 

 47 

 99 

 220 

 6 

– 

– 

– 

– 

28 028 

28 266 

 44 % 

1 307 

1 323 

 22 % 

 0 

– 

1 442 

 99 % 

– 

– 

 8 

17 374 

17 437 

 51 % 

7 449 

7 449 

29 002 

 44 

 12 

 0 

 44 

 12 

 0 

4 679 

 0 

– 

3 735 

3 735 

12 758 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 1 

– 

 1 

 33 

 97 % 

 1 

 1 

98 034 

98 150 

 29 % 

–  239 935  239 935 

 0 

– 

 1 

 5 

 96 % 

 100 % 

 153 

 336 

 15 % 

 9 

 70 

 10 

– 

 1 

 6 

 338 

 100 % 

 301 

 45 % 

 335 

 98 % 

– 

- 

 12 

 94 % 

 95 

 83 % 

 169 

2 832 

 95 % 

 0 

 9 

 1 

 1 

 3 

 0 

 136 

 316 

 92 % 

 99 % 

 47 

 89 % 

 100 

 223 

 99 % 

 99 % 

 6 

 65 % 

170 

– 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

 0 

– 

1 932 

1 932 

 0 

 0 

 370 

 370 

 8 

– 

– 

 6 

 8 

– 

– 

 6 

 135 

 11 

 135 

 11 

 5 

 6 

 1 

 2 

 1 

 5 

 6 

 1 

 2 

 1 

– 

 0 

– 

– 

 0 

 0 

 0 

– 

– 

 1 

 14 

 0 

 0 

 0 

 0 

 0 

– 

 3 

Total 

13=10+ 
11+12 

 4 

29 088 

4 691 

 0 

 0 

 1 

 86 

 12 

– 

 0 

 168 

12 925 

– 

– 

– 

– 

 0 

 0 

– 

– 

– 

 0 

 0 

 1 

 0 

– 

 0 

– 

 0 

– 

– 

 0 

– 

– 

 0 

 0 

 0 

– 

– 

 1 

 14 

 1 

 0 

 0 

 0 

 0 

 0 

 3 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Commitments made 

Appropriations carried over 
to 2022 

Appropriations lapsing 

  EUR million 

Programme 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

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 

Total 

13=10+ 
11+12 

  Environment and Climate (LIFE) 

 742 

 739 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 
Total Heading 2: Cohesion, 
Resilience and Values 
3  Agricultural Guarantees 
Other progr. of Natural 
Resources and Environment 
Agricultural Fund for Rural 
Development 

  Maritime and Fisheries 

  Fisheries (SFPA and RFMO) 

  Decentralised agencies 

  Pilot projects and prep. actions 

Just Transition Fund 
Loan facility under Just 
Transition Mechanism 
  Decentralised agencies 

  Pilot projects and prep. actions 

Total Heading 3: Natural 
Resources and Environment 
Asylum, Migration and 
Integration  

4 

  Decentralised agencies 

  Pilot projects and prep. actions 
Border Mngmt. (IBMF) - Border 
mngmt and visa 
Border Mngmt. (IBMF) - 
Customs equipment 
  Decentralised agencies 

Total Heading 4: Migration and 
Border Management 

 30 

 30 

 185 

 181 

– 

– 

 0 

 1 

 30 

 99 % 

 182 

 98 % 

– 

– 

– 

 1 

– 

 1 

– 

 2 

452 326 

6 760 

 9  145 178  151 947 

34 % 

 0  253 653  253 653 

46 460 

41 518 

39 679 

 470 

 669 

40 818 

 98 % 

 686 

– 

– 

23 833 

15 339 

 998 

 152 

 22 

– 

 107 

 152 

 21 

– 

12 005 

 46 

 57 

 4 

 4 

– 

 50 

 4 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

- 

2 366 

17 705 

 74 % 

 110 

 217 

 22 % 

– 

 0 

– 

 3 

 5 

 0 

 6 

– 

 152 

 100 % 

 21 

 97 % 

– 

- 

 741 

 100 % 

 9 

 0 

 0 % 

 0 % 

 57 

 99 % 

 4 

 100 % 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 2 

– 

 689 

– 

5 866 

5 866 

 0 

– 

 1 

– 

 1 

 0 

– 

 1 

– 

 1 

 6 

– 

 2 

 652 

 0 

– 

– 

 0 

10 863 

10 863 

1 133 

 46 

 46 

 0 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

 5 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

 0 

 2 

 267 

46 726 

 0 

– 

 260 

 129 

– 

– 

– 

 0 

– 

– 

 0 

– 

 11 

– 

 262 

 781 

 0 

– 

– 

 0 

1 133 

– 

 0 

– 

79 377 

56 094 

 470 

3 160 

59 723 

75 % 

 686 

16 779 

17 466 

1 794 

 5 

 389 

2 188 

 903 

 497 

 160 

 138 

 0 

– 

 442 

 153 

 135 

 135 

 728 

 703 

2 368 

1 626 

– 

– 

– 

– 

– 

– 

– 

 2 

 4 

– 

 3 

– 

 10 

 19 

 499 

 55 % 

 142 

 89 % 

– 

– 

 156 

 35 % 

 135 

 100 % 

 712 

 98 % 

1 644 

69 % 

– 

– 

– 

– 

– 

– 

– 

 6 

 18 

 0 

 7 

– 

 16 

 47 

 6 

 18 

 0 

 7 

– 

 16 

 47 

 398 

– 

– 

 279 

– 

– 

 677 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

– 

– 

 0 

 398 

 0 

– 

 279 

– 

– 

 677 

171 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Commitments made 

Appropriations carried over 
to 2022 

Appropriations lapsing 

  EUR million 

Programme 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

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 

5  Internal Security Fund (ISF) 

  Nuclear decommissioning 

Nuclear Safety and 
decommissioning 

 182 

 73 

 70 

 70 

 73 

 69 

  Decentralised agencies 

 200 

 193 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 

– 

 21 

– 

 20 

  European Defence (Research) 

 330 

 323 

European Defence (Non 
Research) 

  Military Mobility 

  Pilot projects and prep. actions 
Total Heading 5: Security and 
Defence 
Neighbourhood, Developm. and 
Intl. Cooperation 
Instrument for Nuclear Safety 
(EINS) 

6 

 639 

 623 

 227 

 227 

– 

– 

1 741 

1 597 

12 627 

10 833 

 40 

 38 

  Humanitarian Aid (HUMA) 

2 207 

2 168 

Common Foreign and Security 
Policy (CFSP) 
Overseas Countries and 
Territories (OCT) 

  Other actions 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 
Pre-Accession Assistance (IPA 
III) 

 409 

 352 

 67 

 19 

 0 

 94 

 63 

 17 

– 

 92 

2 011 

1 566 

  Pilot projects and prep. actions 

– 

– 

Total Heading 6: Neighbourhood 
and the World 
7  Staff Pensions 

17 474 

15 130 

2 179 

2 173 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 1 

– 

 0 

 3 

– 

 0 

 7 

 71 

 39 % 

 73 

 100 % 

 69 

 99 % 

 196 

 98 % 

– 

- 

 20 

 96 % 

 330 

 100 % 

 17 

 639 

 100 % 

– 

– 

 227 

 100 % 

– 

- 

 28 

1 625 

93 % 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 2 

– 

 0 

 4 

– 

 0 

– 

– 

– 

– 

 7 

 2 

– 

 0 

 4 

– 

 0 

– 

– 

– 

– 

 108 

– 

 0 

– 

– 

 1 

 0 

– 

 0 

– 

 7 

 109 

 127 

10 960 

 87 % 

1 578 

 89 

1 667 

 0 

 28 

 56 

– 

– 

– 

 1 

 38 

 94 % 

2 196 

 100 % 

 408 

 100 % 

 63 

 94 % 

 17 

 94 % 

– 

– 

 93 

 99 % 

 0 

– 

– 

 4 

– 

– 

– 

 2 

 11 

 1 

– 

 0 

– 

 0 

 2 

 11 

 1 

 4 

 0 

– 

 0 

– 

– 

– 

 0 

– 

 1 

– 

 0 

 30 

1 596 

 79 % 

 318 

 97 

 415 

 (0) 

– 

– 

- 

– 

– 

– 

 242 

15 372 

88 % 

1 900 

 200 

2 100 

– 

2 173 

 100 % 

– 

– 

– 

– 

 2 

 5 

172 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

– 

– 

– 

– 

– 

– 

 0 

 0 

– 

 0 

 0 

– 

– 

 0 

– 

 0 

– 

 1 

– 

Total 

13=10+ 
11+12 

 108 

– 

 0 

 0 

– 

 1 

 0 

– 

 0 

– 

 109 

 0 

– 

 0 

 0 

– 

 1 

 0 

 0 

 0 

– 

 2 

 5 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Commitments made 

Appropriations carried over 
to 2022 

Appropriations lapsing 

  EUR million 

Programme 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

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 

(Pensions former Members) EP 

(Pensions former Members) ECC 
(Pensions former Members) 
Commission 
(Pensions former Members) 
CJEU 
(Pensions former Members) ECA 
(Pensions former Members) 
Ombudsman 
(Pensions former Members) 
EDPS 

 11 

 1 

 7 

 12 

 5 

 0 

 0 

 11 

 1 

 7 

 12 

 5 

 0 

 0 

  European schools 

 216 

 197 

  Remuneration statutory staff 

2 561 

2 494 

  Remuneration external staff 
Members - Salaries and 
allowances 
Members - Temporary 
allowances 

  Recruitment costs 

  Termination of service 

  Training costs 

  Social and Mobility 

Information and comm. 
technology 

  Rents and purchases 

Linked to buildings 

  Security 

  Mission and representation 
Meetings, committees, 
conference 
  Official journal 

  Publications 

 312 

 238 

 15 

 3 

 27 

 8 

 23 

 52 

 15 

 3 

 26 

 8 

 17 

 24 

 381 

 298 

 357 

 114 

 75 

 28 

 9 

 2 

 17 

 318 

 86 

 63 

 24 

 5 

 2 

 13 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 15 

 31 

 33 

 0 

– 

 1 

– 

 3 

 17 

 50 

 27 

 19 

 6 

 1 

 1 

 0 

 3 

 11 

 99 % 

 1 

 100 % 

 7 

 98 % 

 12 

 99 % 

 5 

 100 % 

 0 

 0 

 94 % 

 94 % 

 212 

 98 % 

2 526 

 99 % 

 271 

 87 % 

 15 

 98 % 

 3 

 98 % 

 27 

 98 % 

 8 

 99 % 

 20 

 41 

 87 % 

 79 % 

 347 

 91 % 

 345 

 105 

 69 

 25 

 97 % 

 92 % 

 92 % 

 88 % 

 6 

 66 % 

 2 

 100 % 

 16 

 93 % 

173 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 5 

 35 

 31 

 0 

– 

 0 

– 

 3 

 11 

 34 

 12 

 9 

 6 

 2 

 2 

– 

 1 

– 

– 

– 

– 

– 

– 

– 

 5 

 35 

 31 

 0 

– 

 0 

– 

 3 

 11 

 34 

 12 

 9 

 6 

 2 

 2 

– 

 1 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 1 

 10 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 1 

 1 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

– 

– 

– 

– 

 0 

 0 

 0 

 0 

 0 

 0 

 1 

 0 

– 

– 

Total 

13=10+ 
11+12 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 1 

 10 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 2 

 2 

– 

 0 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Commitments made 

Appropriations carried over 
to 2022 

Appropriations lapsing 

  EUR million 

Programme 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

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 

  Acquisition of information 

  Studies and investigations 

General equipment, vehicle, 
furniture 
Linguistic external services 

  Other administrative expenditure 

  Pilot projects and prep. actions 
Administrative expenditure of 
Other Institutions 
Total Heading 7: European 
Public Administration 
O  Innovation Fund (IF) 

  Other actions 

S 

  Total Heading O: Outside MFF 
Solidarity and Emergency Aid 
(SEAR) 
European Globalisation 
Adjustment (EGF) 

  Brexit Adjustment Reserve 
Total Heading S: Solidarity 
mechanisms within and outside 
the Union (Special instruments) 

 4 

 6 

 32 

 41 

 25 

– 

 4 

 5 

 24 

 24 

 18 

– 

4 879 

4 171 

11 404 

10 286 

3 816 

 106 

3 922 

– 

– 

– 

 844 

 791 

 217 

 24 

1 698 

 407 

2 759 

1 223 

– 

– 

– 

– 

– 

– 

 85 

 85 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

 3 

 10 

 4 

– 

 4 

 5 

 100 % 

 88 % 

 27 

 86 % 

 35 

 22 

– 

 85 % 

 88 % 

- 

 335 

4 590 

 94 % 

 559 

10 930 

96 % 

 147 

 52 

 199 

 147 

 4 % 

 52 

 49 % 

 199 

 5 % 

– 

– 

– 

– 

– 

– 

 22 

 22 

– 

– 

– 

 0 

 0 

 4 

 6 

 3 

– 

 0 

 0 

 4 

 6 

 3 

– 

 0 

 1 

 0 

– 

 0 

– 

 153 

 175 

 114 

 315 

 337 

 135 

3 670 

3 670 

 53 

 53 

3 723 

3 723 

 53 

– 

– 

– 

– 

– 

– 

– 

– 

 791 

 94 % 

 53 

 24 

 11 % 

– 

 407 

 24 % 

1 291 

– 

 7 

– 

 7 

 173 

1 291 

– 

1 223 

44 % 

1 343 

 7 

1 350 

 173 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

 0 

– 

 0 

– 

 1 

 2 

– 

– 

– 

– 

 13 

– 

 13 

Total 

13=10+ 
11+12 

 0 

 1 

 0 

– 

 0 

– 

 115 

 137 

– 

– 

– 

– 

 186 

– 

 186 

  Total 
50 030 
* This MFF programme includes the complementary financial envelope from the NextGenerationEU for the REACT-EU package. Please consult the chapter 1.1 Multiannual Financial 
Framework  2021-2027  of  the  Notes  to  the  Budgetary  Implementation  Reports.  The  paragraph  on  Heading  2  details  the  contribution  of  this  MFF  programme  to  the  REACT-EU 
package. 

4 065  283 891  287 956  49 354 

 596  154 334  268 345 

606 331  113 415 

44 % 

 671 

 5 

174 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.9.  DETAILED MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS 

Annual accounts of the European Union 2021 

EUR million 

Appropriations lapsing 

Programme 

Total 
appropr. 
availabl
e 

from 
final 
adopted 
budget 

Payments made 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2022 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

from 
final 
adopted 
budge 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

5=2+ 
3+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

1 

Horizon Europe 

12 937 

8 818 

Euratom 

 444 

 256 

Thermonuclear 
Experimental Reactor 
(ITER) 

Other actions 

Pilot projects and prep. 
actions 

 659 

 612 

 377 

 12 

– 

 12 

InvestEU Fund 

1 662 

 938 

CEF - Transport 

1 398 

1 377 

CEF - Energy 

CEF - Digital 

Digital Europe 

Decentralised agencies 

Other actions 

Pilot projects and prep. 
actions 
Actions under 
prerogatives of 
Commission 

Single Market 

EU Anti-Fraud 

Taxation 

Customs 

Decentralised agencies 

Other actions 

 556 

 164 

 94 

 203 

 372 

 540 

 157 

 80 

 189 

 372 

 18 

 11 

 27 

 25 

 488 

 413 

 17 

 38 

 100 

 128 

 7 

 15 

 35 

 92 

 118 

 7 

 73 

 33 

 0 

– 

– 

– 

 1 

 1 

 1 

 0 

– 

– 

 0 

– 

 4 

– 

 0 

 0 

– 

– 

 997 

9 888 

 76 % 

 110 

2 926 

3 036 

 13 

 301 

 68 % 

 16 

 115 

 130 

 1 

 613 

 93 % 

 74 

– 

 74 

 20 % 

 12 

 98 % 

 574 

1 512 

 91 % 

 13 

 12 

 5 

 4 

 8 

– 

– 

 0 

1 391 

 99 % 

 552 

 99 % 

 162 

 99 % 

 84 

 89 % 

 197 

 97 % 

 372 

 100 % 

 12 

 66 % 

 25 

 90 % 

 16 

 432 

 89 % 

 0 

 1 

 4 

 5 

 0 

 15 

 37 

 97 

 91 % 

 96 % 

 96 % 

 123 

 96 % 

 7 

 100 % 

175 

 1 

– 

– 

 1 

 1 

 1 

 1 

 6 

– 

– 

– 

– 

 8 

– 

 0 

 0 

– 

– 

 45 

 46 

 303 

 303 

– 

– 

 149 

 150 

 4 

 0 

 1 

 0 

 5 

– 

– 

 0 

 5 

 2 

 2 

 6 

 5 

– 

– 

 0 

 41 

 49 

 1 

 1 

 4 

 5 

 0 

 1 

 2 

 4 

 5 

 0 

 2 

 0 

 0 

– 

 0 

 0 

 2 

 1 

 0 

 3 

– 

– 

 6 

 3 

 6 

 1 

 0 

 0 

 0 

– 

 8 

 12 

 0 

– 

– 

– 

 0 

 1 

 0 

 0 

– 

– 

– 

– 

 0 

– 

 0 

– 

– 

– 

 4 

– 

– 

 0 

– 

 0 

– 

 (0) 

– 

 0 

– 

– 

– 

 0 

 0 

– 

– 

– 

– 

– 

Total 

13=10+ 
11+12 

 14 

 13 

 0 

 0 

 0 

 0 

 2 

 2 

 0 

 4 

– 

– 

 6 

 3 

 7 

 1 

 0 

 0 

 0 

– 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Total 
appropr. 
availabl
e 

from 
final 
adopted 
budget 

Payments made 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2022 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

EUR million 

Appropriations lapsing 

from 
final 
adopted 
budge 

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 

 9 

 9 

2 722 

2 374 

 44 

– 

 43 

– 

– 

 4 

– 

– 

– 

 9 

 100 % 

 195 

2 573 

 95 % 

 1 

– 

 44 

 100 % 

– 

- 

– 

 5 

– 

– 

– 

– 

 143 

 148 

 0 

– 

 0 

– 

– 

 0 

– 

– 

– 

 0 

– 

– 

22 478 

16 495 

 115 

1 922 

18 532 

82 % 

 151 

3 744 

3 895 

 25 

 22 

Programme 

Pilot projects and prep. 
actions 
European Space 
Programme 

Decentralised agencies 

Pilot projects & 
preparatory actions 
Total Heading 1: Single 
Market, Innovation and 
Digital 
Regional Development 
(ERDF) * 

2 

47 457 

37 374 

Cohesion Fund 

9 852 

8 498 

Cohesion Fund contrib. 
to CEF-Transport 
Pilot projects and prep. 
actions 
European Social Fund 
Plus (ESF+) * 
Support to Turkish-
Cypriot Community 
European Recovery and 
Resilience 

Pericles IV 

EU Recovery 

RescEU 

EU4Health 

1 035 

1 022 

 3 

 3 

21 280 

16 952 

 40 

46 469 

 0 

 5 

 38 

 79 

 0 

 3 

 204 

 165 

 66 

 57 

Emergency support 
within the Union (ESI) 

1 132 

 314 

 195 

Decentralised agencies 

 334 

 316 

Pilot projects and prep. 
actions 
Actions under 
prerogatives of 
Commission 

 3 

 12 

 3 

 9 

– 

– 

– 

 5 

 2 

– 

– 

 4 

 0 

8 034 

45 412 

 96 % 

1 219 

9 719 

 99 % 

 9 

– 

1 031 

 100 % 

 3 

 99 % 

2 470 

19 426 

 91 % 

 1 

 40 

 98 % 

 1 

46 375 

46 455 

 100 % 

– 

– 

 17 

 1 

 0 

– 

 15 

 4 

 70 

 10 

– 

 2 

 0 

 3 

 90 % 

 66 % 

 196 

 96 % 

 61 

 93 % 

 579 

 51 % 

 326 

 98 % 

 3 

 100 % 

 11 

 93 % 

176 

 2 

 0 

– 

– 

 2 

 1 

 2 

– 

 2 

– 

 3 

– 

– 

– 

– 

2 043 

2 044 

 133 

 133 

 4 

 0 

 4 

 0 

1 849 

1 850 

 1 

 0 

– 

– 

 2 

 1 

 (0) 

 0 

 11 

 0 

– 

 8 

 0 

 13 

 0 

 2 

 8 

 4 

 370 

 370 

 8 

– 

– 

 8 

– 

– 

 2 

 0 

– 

 0 

 0 

– 

 0 

 0 

 1 

 0 

 0 

– 

– 

 2 

 0 

 0 

– 

– 

– 

 0 

 183 

– 

– 

– 

Total 

13=10+ 
11+12 

– 

 0 

– 

– 

 51 

 1 

 0 

– 

– 

 4 

 0 

 2 

 0 

– 

 0 

 1 

 183 

 0 

 0 

 1 

– 

 0 

– 

– 

 5 

 (0) 

 0 

– 

– 

 0 

 (0) 

 (0) 

– 

– 

 0 

 0 

– 

– 

– 

– 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Programme 

Total 
appropr. 
availabl
e 

from 
final 
adopted 
budget 

Payments made 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2022 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

EUR million 

Appropriations lapsing 

from 
final 
adopted 
budge 

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 

Employment and Social 
Innovation 

 69 

 52 

Erasmus+ 

2 676 

1 981 

European Solidarity 
Corps (ESC) 

 115 

 93 

Creative Europe 

 151 

 131 

Justice 

Rights and Values 

 42 

 63 

 35 

 59 

Decentralised agencies 

 210 

 203 

Other actions 

Pilot projects and prep. 
actions 
Actions under 
prerogatives of 
Commission 
Total Heading 2: 
Cohesion, Resilience 
and Values 

 8 

 28 

 6 

 28 

 160 

 157 

 1 

 7 

 2 

 2 

 0 

 0 

 2 

– 

– 

– 

 6 

 59 

 85 % 

 409 

2 397 

 90 % 

 3 

 8 

 0 

 1 

 3 

 0 

 0 

 1 

 97 

 84 % 

 141 

 93 % 

 35 

 61 

 83 % 

 96 % 

 208 

 99 % 

 6 

 84 % 

 28 

 97 % 

 158 

 99 % 

 2 

 7 

 4 

 2 

 1 

 1 

– 

– 

– 

– 

 6 

 8 

 268 

 276 

 14 

 8 

 6 

 1 

 2 

 1 

– 

 1 

 18 

 10 

 7 

 2 

 2 

 1 

– 

 1 

 2 

 0 

 0 

 0 

 0 

 0 

– 

 0 

 1 

 1 

 1 

 0 

 0 

 0 

 0 

 0 

– 

– 

– 

– 

131 414 

67 577 

 239 

58 639  126 454 

96 % 

 27 

4 733 

4 760 

 10 

 187 

3 

Agricultural Guarantees 

41 467 

39 605 

 486 

 669 

40 760 

 98 % 

 687 

Other progr. of Natural 
Resources and 
Environment 
Agricultural Fund for 
Rural Development 

– 

– 

15 168 

14 345 

Maritime and Fisheries 

 847 

 693 

Fisheries (SFPA and 
RFMO) 

Decentralised agencies 

Pilot projects and prep. 
actions 
Environment and 
Climate (LIFE) 

 150 

 150 

 22 

 3 

 21 

 3 

 449 

 437 

Just Transition Fund 

 96 

 1 

– 

 2 

 1 

– 

– 

– 

 4 

– 

– 

– 

- 

 306 

14 652 

 97 % 

 44 

 739 

 87 % 

– 

 0 

– 

 2 

 0 

 150 

 100 % 

 21 

 97 % 

 3 

 100 % 

 442 

 99 % 

 1 

 1 % 

177 

– 

 0 

 1 

– 

– 

– 

 5 

– 

 689 

 11 

 2 

– 

– 

 512 

 512 

 107 

 108 

– 

 1 

– 

 1 

– 

 1 

– 

 6 

 94 

 94 

 7 

– 

 0 

 0 

– 

– 

– 

 0 

– 

– 

 4 

 1 

– 

– 

– 

 1 

 0 

Total 

13=10+ 
11+12 

 2 

 3 

 0 

 0 

 0 

 0 

 0 

 0 

 1 

 1 

 200 

 18 

– 

 4 

 1 

– 

– 

– 

 1 

 0 

 0 

 2 

 0 

 0 

 0 

– 

 0 

– 

 0 

 0 

 3 

 0 

– 

– 

 0 

– 

– 

– 

 0 

– 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Total 
appropr. 
availabl
e 

from 
final 
adopted 
budget 

Payments made 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2022 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

EUR million 

Appropriations lapsing 

from 
final 
adopted 
budge 

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 

 46 

 57 

 5 

– 

 50 

 5 

– 

– 

– 

 0 

 6 

– 

 0 

 0 % 

 57 

 99 % 

 5 

 100 % 

– 

– 

– 

 46 

 46 

 0 

– 

 0 

– 

– 

– 

– 

58 310 

55 312 

 492 

1 027 

56 831 

97 % 

 693 

 762 

1 455 

 17 

Programme 

Loan facility under Just 
Transition Mechanism 

Decentralised agencies 

Pilot projects and prep. 
actions 
Total Heading 3: 
Natural Resources and 
Environment 
Asylum, Migration and 
Integration  

4 

5 

1 236 

1 223 

Decentralised agencies 

 160 

 138 

Pilot projects and prep. 
actions 
Border Mngmt. (IBMF) - 
Border mngmt and visa 
Border Mngmt. (IBMF) - 
Customs equipment 

 0 

 0 

 558 

 400 

 0 

– 

Decentralised agencies 

 779 

 754 

Total Heading 4: 
Migration and Border 
Management 
Internal Security Fund 
(ISF) 
Nuclear 
decommissioning 
Nuclear Safety and 
decommissioning 

2 734 

2 515 

 169 

 164 

 46 

 82 

 46 

 76 

Decentralised agencies 

 200 

 193 

Pilot projects and prep. 
actions 
Actions under 
prerogatives of 
Commission 
European Defence 
(Research) 
European Defence (Non 
Research) 

 1 

 1 

 21 

 19 

 2 

 1 

 199 

 198 

 0 

 2 

– 

– 

 1 

– 

– 

 3 

 0 

– 

– 

– 

– 

– 

– 

 3 

 4 

– 

1 228 

 99 % 

 142 

 89 % 

 0 

 57 % 

 12 

 414 

 74 % 

– 

– 

– 

 10 

 764 

 98 % 

 29 

2 547 

93 % 

 2 

– 

 0 

 3 

– 

 0 

 0 

 0 

 166 

 98 % 

 46 

 100 % 

 76 

 92 % 

 196 

 98 % 

 1 

 100 % 

 19 

 91 % 

 1 

 43 % 

 199 

 100 % 

178 

 2 

– 

– 

 1 

 0 

– 

 3 

 1 

– 

 2 

– 

– 

– 

 1 

 1 

 5 

 18 

 0 

 7 

 18 

 0 

 142 

 143 

– 

 16 

 0 

 16 

 181 

 184 

 2 

– 

 1 

 4 

– 

 0 

– 

– 

 3 

– 

 3 

 4 

– 

 0 

 1 

 1 

 1 

– 

– 

 1 

– 

 0 

 2 

 0 

 0 

 4 

– 

– 

 2 

 0 

 0 

Total 

13=10+ 
11+12 

– 

 0 

– 

 24 

 1 

 0 

– 

 1 

– 

 0 

 3 

 0 

 0 

 4 

 0 

– 

 2 

 0 

 0 

– 

– 

– 

 7 

 0 

– 

– 

 1 

– 

– 

 1 

 0 

– 

– 

– 

– 

– 

– 

 0 

– 

 0 

– 

 0 

– 

 0 

– 

– 

– 

– 

 0 

– 

– 

– 

 0 

– 

– 

 0 

 0 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Programme 

Total 
appropr. 
availabl
e 

from 
final 
adopted 
budget 

Payments made 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2022 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

EUR million 

Appropriations lapsing 

from 
final 
adopted 
budge 

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 

6 

Military Mobility 

Pilot projects and prep. 
actions 
Total Heading 5: 
Security and Defence 
Neighbourhood, 
Developm. and Intl. 
Cooperation 
Instrument for Nuclear 
Safety (EINS) 
Humanitarian Aid 
(HUMA) 
Common Foreign and 
Security Policy (CFSP) 
Overseas Countries and 
Territories (OCT) 

Other actions 

Pilot projects and prep. 
actions 
Actions under 
prerogatives of 
Commission 
Pre-Accession 
Assistance (IPA III) 
Pilot projects and prep. 
actions 
Total Heading 6: 
Neighbourhood and the 
World 

 2 

 5 

 1 

 5 

 726 

 703 

– 

– 

 0 

– 

 0 

 4 

 1 

 5 

 58 % 

 98 % 

 708 

97 % 

 1 

– 

 5 

– 

– 

 7 

 1 

– 

 12 

6 939 

5 690 

 22 

 78 

5 789 

 83 % 

 989 

 156 

1 145 

 20 

 16 

2 473 

2 400 

 388 

 346 

 8 

 17 

 2 

 7 

 17 

 2 

 72 

 71 

2 338 

1 894 

– 

– 

 1 

 5 

 0 

– 

– 

– 

– 

 6 

– 

 1 

 17 

 87 % 

 45 

2 451 

 99 % 

 41 

 387 

 100 % 

– 

– 

– 

 7 

 86 % 

 17 

 100 % 

 2 

 99 % 

 1 

 72 

 100 % 

 1 

 6 

 0 

 1 

– 

– 

– 

 2 

 15 

 1 

– 

 0 

– 

 0 

 2 

 22 

 1 

 1 

 0 

– 

 0 

 292 

2 192 

 94 % 

 11 

 135 

 145 

– 

– 

- 

– 

– 

– 

12 258 

10 443 

 34 

 458 

10 935 

89 % 

1 008 

 308 

1 317 

7 

Staff Pensions 

2 179 

2 173 

(Pensions former 
Members) EP 
(Pensions former 
Members) ECC 
(Pensions former 
Members) Commission 

 11 

 11 

 1 

 7 

 1 

 7 

(Pensions former 

 12 

 12 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

2 173 

 100 % 

 11 

 99 % 

 1 

 100 % 

 7 

 98 % 

 12 

 99 % 

179 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

 6 

 3 

 0 

 0 

 0 

– 

 0 

– 

– 

 0 

– 

 3 

 5 

 0 

 0 

 0 

 0 

– 

– 

 0 

 2 

 0 

 0 

– 

– 

– 

– 

– 

 1 

– 

 3 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

 0 

 0 

 0 

– 

– 

 0 

– 

 0 

– 

 0 

– 

– 

– 

– 

– 

Total 

13=10+ 
11+12 

 0 

 0 

 6 

 5 

 0 

 0 

 0 

– 

 0 

 0 

– 

 1 

– 

 6 

 5 

 0 

 0 

 0 

 0 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
European schools 

 217 

 196 

Annual accounts of the European Union 2021 

Total 
appropr. 
availabl
e 

from 
final 
adopted 
budget 

Payments made 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2022 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

EUR million 

Appropriations lapsing 

from 
final 
adopted 
budge 

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 

 5 

 0 

 0 

 5 

 0 

 0 

2 561 

2 494 

– 

– 

– 

 1 

– 

 350 

 200 

 32 

 15 

 3 

 31 

 8 

 34 

 64 

 13 

 3 

 24 

 8 

 6 

 15 

 0 

– 

 2 

– 

 10 

 10 

 523 

 155 

 139 

 361 

 165 

 100 

 35 

 16 

 3 

 24 

 5 

 300 

 47 

 36 

 12 

 1 

 2 

 7 

 2 

 5 

 50 

 25 

 1 

 1 

 1 

 6 

 1 

– 

– 

– 

 13 

 31 

 32 

 0 

– 

 0 

– 

 2 

 11 

 30 

 26 

 7 

 2 

 0 

 1 

 0 

 1 

 0 

 5 

 100 % 

 0 

 0 

 94 % 

 94 % 

 210 

 97 % 

2 526 

 99 % 

– 

– 

– 

 0 

 0 

 264 

 75 % 

 38 

 13 

 83 % 

 3 

 98 % 

 27 

 88 % 

 8 

 99 % 

 17 

 36 

 51 % 

 56 % 

 2 

– 

 2 

– 

 11 

 8 

 323 

 62 % 

 143 

 331 

 92 % 

 104 

 63 % 

 62 

 61 % 

 14 

 39 % 

 3 

 3 

 17 % 

 79 % 

 15 

 62 % 

 4 

 68 % 

180 

 18 

 39 

 28 

 11 

 3 

 1 

 6 

 2 

– 

– 

– 

 6 

 35 

 32 

 0 

– 

 1 

– 

 4 

 18 

 54 

 12 

 20 

 10 

 2 

 2 

– 

 2 

 0 

– 

– 

– 

 7 

 35 

 70 

 2 

– 

 2 

– 

 15 

 26 

 197 

 30 

 60 

 37 

 13 

 6 

 1 

 9 

 2 

 0 

 0 

 0 

 0 

 1 

 10 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 1 

 1 

– 

 0 

 0 

– 

– 

– 

– 

 0 

 6 

 0 

– 

 1 

– 

 2 

 2 

 2 

 0 

 1 

 1 

 6 

 6 

 0 

 0 

 0 

– 

– 

– 

– 

 0 

 0 

– 

– 

– 

– 

 0 

 0 

 0 

 0 

 0 

 0 

 1 

 1 

– 

– 

 0 

Total 

13=10+ 
11+12 

 0 

 0 

 0 

 0 

 1 

 16 

 0 

 0 

 1 

 0 

 2 

 2 

 2 

 0 

 2 

 1 

 8 

 7 

 0 

 0 

 0 

Programme 

Members) CJEU 

(Pensions former 
Members) ECA 
(Pensions former 
Members) Ombudsman 
(Pensions former 
Members) EDPS 

Remuneration statutory 
staff 
Remuneration external 
staff 
Members - Salaries and 
allowances 
Members - Temporary 
allowances 

Recruitment costs 

Termination of service 

Training costs 

Social and Mobility 

Information and comm. 
technology 

Rents and purchases 

Linked to buildings 

Security 

Mission and 
representation 
Meetings, committees, 
conference 

Official journal 

Publications 

Acquisition of 
information 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Total 
appropr. 
availabl
e 

from 
final 
adopted 
budget 

Payments made 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2022 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

EUR million 

Appropriations lapsing 

from 
final 
adopted 
budge 

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 

 17 

 48 

 44 

 33 

 1 

 1 

 13 

 21 

 12 

 1 

 11 

 15 

 3 

 7 

 0 

– 

 2 

 12 

 70 % 

 30 

 63 % 

 10 

 33 

 75 % 

 3 

– 

 22 

 65 % 

 1 

 98 % 

 4 

 11 

 4 

 6 

– 

 0 

 6 

 7 

 4 

– 

 4 

 17 

 11 

 11 

– 

 1 

 0 

– 

 0 

 0 

 0 

 1 

 0 

 1 

 0 

5 492 

3 537 

 618 

 281 

4 436 

 81 % 

 653 

 205 

 858 

 117 

 77 

 0 

 0 

– 

 0 

– 

 3 

Total 

13=10+ 
11+12 

 1 

 1 

 0 

 1 

 0 

 198 

12 368 

9 316 

 938 

 452 

10 705 

87 % 

 991 

 422 

1 412 

 138 

 108 

 5 

 251 

3 819 

 112 

3 931 

– 

– 

– 

 866 

 791 

 30 

 10 

1 698 

 407 

– 

– 

– 

– 

 0 

– 

 11 

 50 

 61 

 11 

 50 

 61 

 0 % 

 45 % 

2 % 

– 

– 

– 

3 808 

3 808 

 62 

 62 

3 870 

3 870 

– 

 791 

 91 % 

 75 

 14 

 24 

 81 % 

– 

– 

 407 

 24 % 

1 291 

– 

 5 

– 

 75 

 5 

1 291 

2 593 

1 208 

 0 

 14 

1 223 

47 % 

1 365 

 5 

1 371 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

Programme 

Studies and 
investigations 
General equipment, 
vehicle, furniture 
Linguistic external 
services 
Other administrative 
expenditure 
Pilot projects and prep. 
actions 
Administrative 
expenditure of Other 
Institutions 
Total Heading 7: 
European Public 
Administration 

O 

Innovation Fund (IF) 

S 

Other actions 

Total Heading O: 
Outside MFF 
Solidarity and 
Emergency Aid (SEAR) 
European Globalisation 
Adjustment (EGF) 
Brexit Adjustment 
Reserve 
Total Heading S: 
Solidarity mechanisms 
within and outside the 
Union (Special 
instruments) 

Total 

246 812  163 568 

1 821  62 607  227 996 

92 % 

4 244  14 032  18 275 

 199 

 327 

 14 

 541 

* This MFF programme includes the complementary financial envelope from the NextGenerationEU for the REACT-EU package. Please consult the chapter 1.1 Multiannual Financial 
Framework  2021-2027  of  the  Notes  to  the  Budgetary  Implementation  Reports.  The  paragraph  on  Heading  2  details  the  contribution  of  this  MFF  programme  to  the  REACT-EU 
package. 

181 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.10.  DETAILED MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) 

Annual accounts of the European Union 2021 

Commitments outstanding at the end of previous year 

Commitments of the current year 

Programme 

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 

24 186 

 (608) 

(8 526) 

15 052 

13 897 

(1 361) 

 (17) 

12 519 

27 571 

1  Horizon Europe 

  Euratom 

Thermonuclear Experimental Reactor 
(ITER) 

  Other actions 

  Pilot projects and prep. actions 

InvestEU Fund 

  CEF - Transport 

  CEF - Energy 

  CEF - Digital 

  Digital Europe 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 

Actions under prerogatives of 
Commission 

  Single Market 

  EU Anti-Fraud 

  Taxation 

  Customs 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 

  European Space Programme 

1 865 

 338 

1 062 

 109 

 26 

2 753 

6 807 

3 692 

 328 

 65 

 36 

– 

 45 

 36 

 (7) 

 (0) 

 (11) 

 (2) 

 (20) 

 (39) 

 (25) 

 (8) 

 (1) 

 (0) 

– 

 (0) 

 (1) 

 (98) 

 (350) 

 (40) 

 (12) 

 (923) 

(1 380) 

 (552) 

 (160) 

 (58) 

 (36) 

– 

 (10) 

 (20) 

 233 

 712 

 58 

 12 

1 810 

5 388 

3 115 

 161 

 6 

– 

– 

 35 

 15 

 827 

 (45) 

 (344) 

 438 

 28 

 36 

 95 

 0 

 4 

 22 

 (4) 

 (1) 

 (2) 

 (0) 

 (0) 

 (2) 

 (2) 

 (13) 

 (26) 

 (75) 

– 

 (4) 

 (9) 

 (996) 

182 

 11 

 8 

 18 

– 

 0 

 11 

 867 

 288 

 865 

 82 

 10 

2 833 

1 806 

 789 

 277 

1 160 

 197 

 372 

 18 

 31 

 600 

 24 

 35 

 126 

 123 

 9 

 5 

 (203) 

 (263) 

 (34) 

 (0) 

 (590) 

 (11) 

 (0) 

 (2) 

 (26) 

 (162) 

 (372) 

 (1) 

 (5) 

 (88) 

 (3) 

 (10) 

 (22) 

 (123) 

 (3) 

 (0) 

2 079 

(1 577) 

 (0) 

 (0) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 85 

 601 

 48 

 10 

2 243 

1 795 

 789 

 275 

1 133 

 36 

– 

 17 

 26 

 512 

 21 

 25 

 104 

– 

 5 

 4 

 317 

1 313 

 106 

 22 

4 053 

7 183 

3 904 

 436 

1 140 

 36 

– 

 52 

 41 

 950 

 33 

 33 

 122 

– 

 6 

 16 

 502 

1 369 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Commitments outstanding at the end of previous year 

Commitments of the current year 

Programme 

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 

  Decentralised agencies 

  Pilot projects & preparatory actions 

Total Heading 1: Single Market, 
Innovation and Digital 

2  Regional Development (ERDF) * 

  Cohesion Fund 

  Cohesion Fund contrib. to CEF-Transport 

  Pilot projects and prep. actions 

  European Social Fund Plus (ESF+) * 

  Support to Turkish-Cypriot Community 

  European Recovery and Resilience 

  Pericles IV 

  EU Recovery 

  RescEU 

  EU4Health 

Emergency support within the Union 
(ESI) 

  Decentralised agencies 

  Pilot projects and prep. actions 

Actions under prerogatives of 
Commission 

  Employment and Social Innovation 

  Erasmus+ 

  European Solidarity Corps (ESC) 

  Creative Europe 

Justice 

1 

2 

3 

4=1+2+3 

5 

6 

7 

8=5+6+7 

9=4+8 

 2 

– 

– 

– 

 (2) 

– 

– 

– 

 57 

– 

 (42) 

– 

– 

– 

 15 

– 

 15 

– 

42 361 

 (777) 

(13 632) 

27 951 

25 683 

(4 900) 

 (17) 

20 766 

48 717 

101 349 

26 838 

6 635 

 9 

45 252 

 129 

 108 

 1 

– 

 464 

 144 

 469 

 11 

 4 

 9 

 165 

1 346 

 113 

 236 

 64 

 (53) 

 (42) 

 (21) 

 (1) 

 (7) 

 (5) 

 (2) 

 (0) 

– 

 (7) 

 (9) 

– 

 (0) 

 (0) 

 (1) 

 (14) 

 (16) 

 (4) 

 (11) 

 (1) 

(40 365) 

(9 714) 

(1 020) 

 (3) 

60 931 

17 083 

5 594 

 5 

28 266 

(5 047) 

1 323 

1 442 

– 

 (4) 

 (11) 

– 

(17 325) 

27 921 

17 437 

(2 101) 

 (0) 

 (0) 

– 

– 

– 

23 219 

1 319 

1 431 

– 

84 149 

18 402 

7 026 

 5 

15 336 

43 257 

 88 

 52 

 0 

– 

 308 

 86 

 94 

 11 

 1 

 1 

 93 

 798 

 87 

 145 

 49 

 (36) 

 (54) 

– 

– 

 (149) 

 (49) 

 (375) 

– 

 (3) 

 (7) 

 (58) 

 (531) 

 (22) 

 (80) 

 (14) 

183 

 33 

 (4) 

 (0) 

 29 

 117 

98 150 

(46 401) 

 1 

 5 

 336 

 338 

 301 

 335 

– 

 12 

 95 

 (0) 

 (3) 

 (47) 

 (12) 

 (204) 

 (326) 

– 

 (4) 

 (1) 

2 832 

(1 866) 

 136 

 316 

 47 

 (75) 

 (60) 

 (21) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

51 749 

51 801 

 0 

 2 

 288 

 327 

 97 

 9 

– 

 8 

 94 

 966 

 61 

 255 

 26 

 1 

 2 

 596 

 412 

 191 

 20 

 1 

 9 

 187 

1 765 

 148 

 400 

 75 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Commitments outstanding at the end of previous year 

Commitments of the current year 

Programme 

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 

 121 

 18 

 11 

 87 

 165 

 (4) 

 (0) 

 (0) 

 (5) 

 (2) 

 (41) 

 (4) 

 (6) 

 (26) 

 (104) 

 76 

 13 

 4 

 56 

 59 

 100 

 223 

 6 

 30 

 182 

 (20) 

 (204) 

 (0) 

 (1) 

 (54) 

– 

– 

– 

– 

– 

 80 

 19 

 6 

 28 

 156 

 33 

 10 

 85 

 128 

 187 

183 747 

 (205) 

(69 986) 

113 555 

151 947 

(56 468) 

 (1) 

95 478 

209 033 

  Rights and Values 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 

Actions under prerogatives of 
Commission 
Total Heading 2: Cohesion, Resilience and 
Values 

3  Agricultural Guarantees 

Other progr. of Natural Resources and 
Environment 

  Agricultural Fund for Rural Development 

  Maritime and Fisheries 

  Fisheries (SFPA and RFMO) 

  Decentralised agencies 

  Pilot projects and prep. actions 

  Environment and Climate (LIFE) 

Just Transition Fund 

Loan facility under Just Transition 
Mechanism 

  Decentralised agencies 

  Pilot projects and prep. actions 

Total Heading 3: Natural Resources and 
Environment 

4  Asylum, Migration and Integration  

  Decentralised agencies 

  Pilot projects and prep. actions 

Border Mngmt. (IBMF) - Border mngmt 
and visa 

 286 

– 

35 164 

3 459 

 21 

– 

 12 

1 888 

– 

– 

 3 

 26 

40 860 

3 122 

 20 

 0 

 (10) 

 (76) 

 200 

40 818 

(40 685) 

– 

– 

– 

– 

– 

 (2) 

(14 023) 

21 139 

17 705 

 (15) 

– 

– 

 (0) 

 (34) 

– 

– 

– 

– 

 (727) 

 (12) 

– 

 (3) 

2 716 

 9 

– 

 9 

 (419) 

1 435 

– 

– 

 (3) 

 (5) 

– 

– 

– 

 21 

 217 

 152 

 21 

– 

 741 

 9 

 0 

 57 

 4 

 (630) 

 (11) 

 (137) 

 (21) 

– 

 (23) 

 (1) 

 (0) 

 (54) 

 (1) 

– 

– 

 (0) 

 (0) 

– 

– 

– 

– 

– 

– 

– 

– 

 133 

– 

 333 

– 

17 075 

38 215 

 206 

 14 

– 

– 

2 922 

 23 

– 

 9 

 718 

2 154 

 8 

– 

 3 

 3 

 8 

– 

 3 

 24 

 (61) 

(15 269) 

25 530 

59 723 

(41 562) 

 (0) 

18 161 

43 691 

 (30) 

(1 182) 

1 909 

– 

– 

– 

 (0) 

 20 

 0 

1 436 

 (37) 

 (413) 

 985 

184 

 499 

 142 

– 

 156 

 (45) 

 (142) 

– 

 (0) 

– 

– 

– 

– 

 453 

2 363 

– 

– 

 20 

 0 

 155 

1 141 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Commitments outstanding at the end of previous year 

Commitments of the current year 

Programme 

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 

Border Mngmt. (IBMF) - Customs 
equipment 

  Decentralised agencies 

Total Heading 4: Migration and Border 
Management 

5  Internal Security Fund (ISF) 

  Nuclear decommissioning 

  Nuclear Safety and decommissioning 

  Decentralised agencies 

  Pilot projects and prep. actions 

Actions under prerogatives of 
Commission 

  European Defence (Research) 

  European Defence (Non Research) 

  Military Mobility 

  Pilot projects and prep. actions 

1 

2 

3 

4=1+2+3 

5 

6 

7 

8=5+6+7 

9=4+8 

– 

 372 

4 950 

 471 

 351 

 324 

 0 

 2 

 26 

– 

 322 

– 

 7 

– 

– 

 (68) 

 (16) 

 (0) 

 (3) 

 (0) 

– 

 (3) 

– 

 (0) 

– 

 (0) 

– 

 (208) 

– 

 164 

 135 

 712 

– 

 (555) 

(1 804) 

3 078 

1 644 

 (743) 

 (166) 

 (46) 

 (70) 

– 

 (1) 

 (14) 

– 

 290 

 305 

 251 

 0 

 1 

 9 

– 

 (198) 

 124 

– 

 (5) 

– 

 2 

 71 

 73 

 69 

 (0) 

– 

 (6) 

 196 

 (196) 

– 

 20 

 330 

 639 

 227 

– 

– 

 (5) 

 (1) 

 (1) 

 (1) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 (0) 

– 

– 

– 

 135 

 157 

 901 

 71 

 73 

 64 

– 

– 

 15 

 329 

 639 

 226 

– 

 135 

 321 

3 980 

 360 

 377 

 315 

 0 

 1 

 24 

 329 

 762 

 226 

 2 

  Total Heading 5: Security and Defence 

1 503 

 (23) 

 (498) 

 981 

1 625 

 (209) 

 (0) 

1 415 

2 397 

6 

Neighbourhood, Developm. and Intl. 
Cooperation 

Instrument for Nuclear Safety (EINS) 

  Humanitarian Aid (HUMA) 

Common Foreign and Security Policy 
(CFSP) 

  Overseas Countries and Territories (OCT) 

  Other actions 

  Pilot projects and prep. actions 

Actions under prerogatives of 
Commission 

  Pre-Accession Assistance (IPA III) 

 117 

1 354 

 160 

 9 

 1 

 4 

 153 

8 249 

18 739 

 (456) 

(4 511) 

13 772 

10 960 

(1 278) 

 (9) 

 (16) 

 (3) 

– 

 (0) 

 (0) 

 (16) 

(1 058) 

 (86) 

 (6) 

 (0) 

 (2) 

 (20) 

 (47) 

 91 

 280 

 70 

 3 

 0 

 2 

 86 

 (182) 

(2 093) 

5 974 

1 596 

185 

 38 

 (1) 

2 196 

(1 393) 

 (0) 

 408 

 (301) 

 63 

 17 

– 

 93 

 (1) 

 (17) 

– 

 (25) 

 (99) 

– 

– 

– 

– 

– 

– 

– 

– 

9 682 

23 453 

 37 

 804 

 107 

 63 

 0 

– 

 68 

1 497 

 128 

1 084 

 178 

 65 

 0 

 2 

 154 

7 471 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Commitments outstanding at the end of previous year 

Commitments of the current year 

Programme 

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 

  Pilot projects and prep. actions 

 0 

 (0) 

– 

– 

– 

– 

– 

– 

– 

1 

2 

3 

4=1+2+3 

5 

6 

7 

8=5+6+7 

9=4+8 

Total Heading 6: Neighbourhood and the 
World 

7  Staff Pensions 

(Pensions former Members) EP 

(Pensions former Members) ECC 

(Pensions former Members) Commission 

(Pensions former Members) CJEU 

(Pensions former Members) ECA 

(Pensions former Members) Ombudsman 

(Pensions former Members) EDPS 

  European schools 

  Remuneration statutory staff 

  Remuneration external staff 

  Members - Salaries and allowances 

  Members - Temporary allowances 

  Recruitment costs 

  Termination of service 

  Training costs 

  Social and Mobility 

Information and comm. technology 

  Rents and purchases 

Linked to buildings 

  Security 

  Mission and representation 

28 785 

 (687) 

(7 821) 

20 278 

15 372 

(3 115) 

 (0) 

12 257 

32 535 

– 

– 

– 

– 

– 

– 

– 

– 

 1 

 0 

 38 

 0 

– 

 3 

– 

 11 

 14 

 142 

 5 

 51 

 26 

 7 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 (0) 

 (6) 

 (0) 

– 

 (1) 

– 

 (2) 

 (4) 

 (2) 

 (0) 

 (1) 

 (1) 

 (6) 

– 

– 

– 

– 

– 

– 

– 

– 

 (1) 

– 

 (32) 

 (0) 

– 

 (2) 

– 

 (10) 

 (10) 

 (139) 

 (5) 

 (50) 

 (25) 

 (1) 

186 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

– 

– 

– 

2 173 

(2 173) 

 11 

 1 

 7 

 12 

 5 

 0 

 0 

 (11) 

 (1) 

 (7) 

 (12) 

 (5) 

 (0) 

 (0) 

 212 

 (210) 

2 526 

(2 526) 

 271 

 (232) 

 15 

 3 

 27 

 8 

 20 

 41 

 347 

 345 

 105 

 69 

 25 

 (13) 

 (3) 

 (25) 

 (8) 

 (7) 

 (26) 

 (184) 

 (327) 

 (54) 

 (37) 

 (13) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 (0) 

 (0) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 2 

 0 

 39 

 2 

– 

 2 

– 

 12 

 15 

 163 

 18 

 51 

 32 

 12 

– 

– 

– 

– 

– 

– 

– 

– 

 2 

 0 

 39 

 2 

– 

 2 

– 

 12 

 15 

 163 

 18 

 51 

 32 

 12 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Commitments outstanding at the end of previous year 

Commitments of the current year 

Programme 

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 

  Meetings, committees, conference 

  Official journal 

  Publications 

  Acquisition of information 

  Studies and investigations 

  General equipment, vehicle, furniture 

Linguistic external services 

  Other administrative expenditure 

  Pilot projects and prep. actions 

Administrative expenditure of Other 
Institutions 
Total Heading 7: European Public 
Administration 

O  Innovation Fund (IF) 

  Other actions 

  Total Heading O: Outside MFF 

S  Solidarity and Emergency Aid (SEAR) 

  European Globalisation Adjustment (EGF) 

  Brexit Adjustment Reserve 

Total Heading S: Solidarity mechanisms 
within and outside the Union (Special 
instruments) 

 6 

 1 

 7 

 1 

 11 

 16 

 3 

 8 

 2 

 627 

 981 

 4 

 7 

 11 

– 

 0 

– 

 0 

 (6) 

 (0) 

 (0) 

 (0) 

 (0) 

 (1) 

 (0) 

 (1) 

 (0) 

 (1) 

 (1) 

 (6) 

 (1) 

 (11) 

 (15) 

 (3) 

 (7) 

 (1) 

 (92) 

 (535) 

 (124) 

 (857) 

 (1) 

 (1) 

 (2) 

– 

– 

– 

– 

 (3) 

 (0) 

 (3) 

– 

 (0) 

– 

 (0) 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

 0 

 0 

 6 

 6 

– 

– 

– 

– 

 6 

 2 

 16 

 4 

 5 

 27 

 35 

 22 

– 

 (2) 

 (2) 

 (9) 

 (2) 

 (1) 

 (15) 

 (30) 

 (14) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 4 

 1 

 7 

 2 

 4 

 13 

 4 

 8 

– 

 4 

 1 

 7 

 2 

 4 

 13 

 4 

 8 

 0 

4 590 

(3 901) 

10 930 

(9 848) 

 (6) 

 (6) 

 684 

 684 

1 075 

1 076 

 147 

 52 

 199 

 791 

 24 

 407 

 (9) 

 (50) 

 (58) 

 (791) 

 (24) 

 (407) 

1 223 

(1 223) 

– 

– 

– 

– 

– 

– 

– 

 138 

 2 

 140 

– 

– 

– 

– 

 138 

 8 

 147 

– 

– 

– 

– 

  Total 

303 197 

(1 946) 

(109 870) 

191 381 

268 345 

(118 126) 

 (24) 

150 194 

341 575 

* This MFF programme includes the complementary financial envelope from the NextGenerationEU for the REACT-EU package. Please consult the chapter 1.1 Multiannual Financial 
Framework  2021-2027  of  the  Notes  to  the  Budgetary  Implementation  Reports.  The  paragraph  on  Heading  2  details  the  contribution  of  this  MFF  programme  to  the  REACT-EU 
package. 

187 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.11.  DETAILED MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN 

Annual accounts of the European Union 2021 

Programme 

<2015 

2015 

2016 

2017 

2018 

2019 

2020 

2021 

Total 

EUR million 

 663 

1 173 

2 129 

3 710 

6 279 

12 881 

27 571 

1  Horizon Europe 

  Euratom 

  Thermonuclear Experimental Reactor (ITER) 

  Other actions 

  Pilot projects and prep. actions 

InvestEU Fund 

  CEF - Transport 

  CEF - Energy 

  CEF - Digital 

  Digital Europe 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 

  Actions under prerogatives of Commission 

  Single Market 

  EU Anti-Fraud 

  Taxation 

  Customs 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 

  European Space Programme 

  Decentralised agencies 

  Pilot projects & preparatory actions 

  Total Heading 1: Single Market, Innovation and Digital 

2  Regional Development (ERDF) 

  Cohesion Fund 

  Cohesion Fund contrib. to CEF-Transport 

  Pilot projects and prep. actions 

  European Social Fund Plus (ESF+) 

  Support to Turkish-Cypriot Community 

  European Recovery and Resilience 

 355 

 8 

– 

 0 

– 

 141 

 6 

 46 

 0 

– 

– 

– 

– 

– 

 21 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

 579 

1 822 

 172 

 120 

– 

 423 

 4 

– 

 6 

– 

 1 

 0 

 144 

 170 

 23 

 2 

 0 

– 

– 

– 

 0 

 10 

– 

– 

 0 

– 

– 

– 

 1 

– 

– 

 76 

 0 

 498 

– 

 5 

– 

 4 

 0 

 195 

 166 

 446 

 9 

 0 

– 

– 

 0 

 0 

 32 

 6 

 11 

 2 

 207 

 635 

 460 

 42 

 0 

– 

– 

 1 

 1 

 57 

 369 

 13 

 6 

 444 

2 162 

 938 

 37 

 1 

– 

– 

 5 

 4 

 109 

 336 

 28 

 4 

 659 

2 244 

1 132 

 67 

 5 

– 

– 

 28 

 9 

 85 

 601 

 48 

 10 

2 243 

1 795 

 800 

 275 

1 133 

 36 

– 

 17 

 26 

 24 

 44 

 117 

 213 

 512 

 1 

 1 

 1 

– 

– 

 3 

 3 

 1 

 5 

– 

 0 

 3 

 7 

 6 

 21 

 25 

 11 

 104 

– 

 0 

 6 

– 

 5 

 4 

 317 

1 313 

 106 

 22 

4 053 

7 183 

3 904 

 436 

1 140 

 36 

– 

 52 

 41 

 950 

 33 

 33 

 122 

– 

 6 

 16 

 57 

 139 

 668 

 502 

1 369 

– 

– 

3 632 

9 416 

2 787 

 917 

 1 

– 

– 

– 

– 

 15 

– 

8 014 

11 812 

21 138 

18 213 

27 076 

23 219 

5 051 

1 376 

– 

7 639 

1 700 

 3 

1 319 

1 431 

– 

 15 

– 

48 717 

84 149 

18 402 

7 026 

 5 

 0 

– 

 0 

– 

– 

 0 

 2 

– 

– 

2 025 

4 266 

1 422 

 759 

 1 

 299 

2 125 

3 617 

7 981 

13 382 

15 336 

43 257 

 22 

– 

 8 

 0 

 9 

 2 

 15 

 14 

 26 

 35 

 29 

 117 

51 749 

51 801 

 497 

1 020 

 381 

 16 

– 

 2 

– 

 20 

 6 

 60 

 5 

– 

– 

– 

– 

– 

 8 

 0 

– 

 0 

– 

– 

– 

 0 

– 

– 

 61 

 11 

 225 

– 

 93 

 4 

– 

188 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Programme 

<2015 

2015 

2016 

2017 

2018 

2019 

2020 

2021 

Total 

EUR million 

  Pericles IV 

  EU Recovery 

  RescEU 

  EU4Health 

  Emergency support within the Union (ESI) 

  Decentralised agencies 

  Pilot projects and prep. actions 

  Actions under prerogatives of Commission 

  Employment and Social Innovation 

  Erasmus+ 

  European Solidarity Corps (ESC) 

  Creative Europe 

Justice 

  Rights and Values 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 

  Actions under prerogatives of Commission 

– 

– 

– 

 0 

– 

– 

 0 

– 

 1 

 1 

 2 

– 

– 

 0 

– 

– 

– 

 0 

– 

– 

– 

 3 

– 

– 

 0 

– 

 0 

 1 

– 

– 

 4 

 2 

– 

 0 

– 

 0 

– 

– 

 0 

 2 

– 

– 

 1 

– 

 1 

 3 

– 

– 

 6 

 5 

– 

– 

 0 

 0 

– 

– 

 1 

 9 

– 

 1 

– 

 0 

 2 

 22 

 1 

 4 

 8 

 6 

– 

– 

 0 

 2 

– 

– 

 6 

 12 

– 

 4 

 0 

– 

 7 

 78 

 11 

 11 

 8 

 11 

– 

 0 

 3 

 6 

 0 

– 

 30 

 25 

– 

 1 

 0 

 0 

 29 

 179 

 33 

 38 

 10 

 20 

– 

 0 

 10 

 13 

 0 

– 

 271 

 36 

 49 

 4 

– 

 1 

 52 

 516 

 41 

 92 

 13 

 33 

 3 

 4 

 43 

 37 

 0 

 2 

 288 

 327 

 142 

 9 

– 

 8 

 94 

 966 

 61 

 255 

 26 

 80 

 30 

 6 

 28 

 129 

 1 

 2 

 596 

 412 

 191 

 20 

 1 

 9 

 187 

1 765 

 148 

 400 

 75 

 156 

 33 

 10 

 85 

 187 

  Total Heading 2: Cohesion, Resilience and Values 

2 546 

 404 

 911 

8 637 

16 907 

33 036 

51 058 

95 534 

209 033 

3  Agricultural Guarantees 

  Other progr. of Natural Resources and Environment 

  Agricultural Fund for Rural Development 

  Maritime and Fisheries 

  Fisheries (SFPA and RFMO) 

  Decentralised agencies 

  Pilot projects and prep. actions 

  Environment and Climate (LIFE) 

Just Transition Fund 

Loan facility under Just Transition Mechanism 

  Decentralised agencies 

  Pilot projects and prep. actions 

– 

– 

 198 

 56 

– 

– 

 0 

 74 

– 

– 

– 

 0 

  Total Heading 3: Natural Resources and Environment 

 328 

1 222 

1 128 

4  Asylum, Migration and Integration  

  Decentralised agencies 

  Pilot projects and prep. actions 

 0 

– 

 0 

 1 

– 

– 

189 

 52 

– 

– 

– 

– 

– 

– 

1 134 

1 042 

 1 

– 

– 

– 

 1 

– 

– 

– 

 2 

– 

 794 

 144 

 1 

– 

– 

 25 

– 

1 416 

 648 

 1 

– 

 2 

 83 

– 

 91 

– 

 133 

– 

5 874 

10 682 

17 075 

 958 

 909 

– 

– 

 5 

 7 

– 

 2 

 206 

 14 

– 

– 

 333 

– 

38 215 

2 922 

 23 

– 

 9 

 86 

 85 

 124 

 391 

 310 

 365 

 718 

2 154 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

– 

 0 

1 065 

 168 

– 

– 

– 

– 

– 

 3 

2 486 

 371 

– 

– 

– 

– 

– 

 2 

– 

– 

– 

 15 

 8 

– 

 3 

 3 

7 231 

12 071 

18 161 

 488 

 827 

 456 

– 

– 

 20 

– 

– 

– 

 8 

– 

 3 

 24 

43 691 

2 363 

 20 

 0 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Programme 

<2015 

2015 

2016 

2017 

2018 

2019 

2020 

2021 

Total 

EUR million 

  Border Mngmt. (IBMF) - Border mngmt and visa 

  Border Mngmt. (IBMF) - Customs equipment 

  Decentralised agencies 

  Total Heading 4: Migration and Border Management 

5  Internal Security Fund (ISF) 

  Nuclear decommissioning 

  Nuclear Safety and decommissioning 

  Decentralised agencies 

  Pilot projects and prep. actions 

  Actions under prerogatives of Commission 

  European Defence (Research) 

  European Defence (Non Research) 

  Military Mobility 

  Pilot projects and prep. actions 

  Total Heading 5: Security and Defence 

6  Neighbourhood, Developm. and Intl. Cooperation 

Instrument for Nuclear Safety (EINS) 

  Humanitarian Aid (HUMA) 

  Common Foreign and Security Policy (CFSP) 

  Overseas Countries and Territories (OCT) 

  Other actions 

  Pilot projects and prep. actions 

  Actions under prerogatives of Commission 

  Pre-Accession Assistance (IPA III) 

  Pilot projects and prep. actions 

  Total Heading 6: Neighbourhood and the World 

7  Staff Pensions 

(Pensions former Members) EP 

(Pensions former Members) ECC 

(Pensions former Members) Commission 

(Pensions former Members) CJEU 

(Pensions former Members) ECA 

(Pensions former Members) Ombudsman 

(Pensions former Members) EDPS 

  European schools 

 17 

– 

– 

 17 

 2 

 1 

 34 

– 

– 

– 

– 

– 

– 

– 

 1 

– 

– 

 2 

 1 

 1 

 1 

– 

– 

 0 

– 

– 

– 

– 

 13 

– 

– 

 66 

 1 

 45 

 1 

– 

– 

 0 

– 

– 

– 

– 

 37 

 875 

 4 

 446 

 47 

 860 

 5 

 0 

– 

– 

– 

 0 

 0 

 7 

 0 

 1 

– 

– 

 0 

 3 

 27 

– 

– 

 146 

 377 

– 

– 

– 

– 

 195 

 517 

 865 

 37 

 63 

 29 

– 

– 

 1 

– 

– 

– 

– 

 49 

 64 

 44 

– 

– 

 1 

– 

– 

– 

 0 

 129 

1 480 

 11 

 159 

2 374 

 23 

 1 

 2 

– 

– 

 0 

 5 

 6 

 4 

– 

 0 

 0 

 5 

 73 

 64 

 50 

– 

– 

 1 

– 

 51 

– 

 1 

 241 

3 267 

 17 

 75 

 35 

 3 

– 

 0 

 22 

 404 

– 

 164 

1 414 

 126 

 66 

 93 

 0 

 1 

 6 

– 

 72 

– 

– 

 364 

4 466 

 27 

 198 

 28 

– 

– 

– 

 51 

 155 

 135 

 157 

 904 

 71 

 73 

 64 

– 

– 

 15 

 329 

 639 

 226 

– 

1 415 

9 684 

 37 

 804 

 107 

 63 

 0 

– 

 68 

1 141 

 135 

 321 

3 980 

 360 

 377 

 315 

 0 

 1 

 24 

 329 

 762 

 226 

 2 

2 397 

23 453 

 128 

1 084 

 178 

 65 

 0 

 2 

 154 

7 471 

– 

 191 

– 

 315 

– 

 639 

1 044 

2 073 

1 272 

1 556 

– 

– 

– 

– 

– 

 642 

1 185 

2 139 

3 458 

5 493 

6 041 

12 319 

32 535 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 2 

– 

– 

– 

– 

– 

– 

– 

– 

 2 

– 

– 

– 

– 

– 

– 

– 

– 

– 

190 

 1 

– 

 0 

– 

– 

 1 

 0 

 381 

– 

1 258 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Programme 

<2015 

2015 

2016 

2017 

2018 

2019 

2020 

2021 

Total 

EUR million 

  Remuneration statutory staff 

  Remuneration external staff 

  Members - Salaries and allowances 

  Members - Temporary allowances 

  Recruitment costs 

  Termination of service 

  Training costs 

  Social and Mobility 

Information and comm. technology 

  Rents and purchases 

Linked to buildings 

  Security 

  Mission and representation 

  Meetings, committees, conference 

  Official journal 

  Publications 

  Acquisition of information 

  Studies and investigations 

  General equipment, vehicle, furniture 

Linguistic external services 

  Other administrative expenditure 

  Pilot projects and prep. actions 

  Administrative expenditure of Other Institutions 

  Total Heading 7: European Public Administration 

O  Innovation Fund (IF) 

  Other actions 

  Total Heading O: Outside MFF 

S  Solidarity and Emergency Aid (SEAR) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

0 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

0 

 0 

– 

 1 

 1 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

 0 

 0 

 5 

 6 

– 

 0 

 39 

 2 

– 

 2 

– 

 12 

 15 

 163 

 18 

 51 

 32 

 12 

 4 

 1 

 7 

 2 

 4 

 13 

 4 

 8 

– 

 684 

1 075 

 138 

 2 

 140 

– 

 0 

 39 

 2 

– 

 2 

– 

 12 

 15 

 163 

 18 

 51 

 32 

 12 

 4 

 1 

 7 

 2 

 4 

 13 

 4 

 8 

 0 

 684 

1 076 

 138 

 8 

 147 

– 

  European Globalisation Adjustment (EGF) 
  Brexit Adjustment Reserve 
  Total Heading S: Solidarity mechanisms within and outside the 
  Total 

Union (Special instruments) 

– 
– 
– 
4 765 

– 
– 
– 
2 771 

– 
– 
– 
4 357 

– 
– 
– 
14 190 

– 
– 
– 
27 158 

– 
– 
– 
54 881 

– 
– 
– 

– 
– 
– 
82 766  150 687 

– 
– 
– 
341 575 

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. 

191 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.12.  DETAILED MFF: OUTSTANDING COMMITMENTS BY APPROPRIATIONS TYPE 

Annual accounts of the European Union 2021 

From budget appropriations 

From assigned revenue appropriations 

Commitm. 
carried 
forward 
from 2020 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

20 834 

 (427) 

11 414 

8 972 

Amount 
remaining 
to be 
settled 
5=1+2+3-
4 
22 848 

Commitm. 
carried 
forward 
from 2020 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

6 

7 

8 

9 

Amount 
remaining 
to be 
settled 
10=6+7+
8-9 

3 353 

 (198) 

2 484 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
2021 

11=5+10 

4 723 

27 571 

 57 

 45 

 106 

0 

2 048 

 132 

 52 

 3 

 30 

– 

0 

0 

 5 

 26 

 0 

 2 

 1 

– 

 0 

0 

 317 

1 313 

 106 

 22 

4 053 

7 183 

3 904 

 436 

1 140 

 36 

– 

 52 

 41 

 950 

 33 

 33 

 122 

– 

 6 

 16 

 276 

1 017 

0 

 26 

2 332 

6 674 

3 644 

 321 

 63 

 35 

– 

 45 

 34 

 (4) 

 (0) 

0 

 (2) 

 (20) 

 (38) 

 (25) 

 (7) 

 (1) 

– 

– 

 (0) 

 (1) 

 805 

 (44) 

 28 

 31 

 86 

 0 

 4 

 22 

1 610 

 2 

 (4) 

 (1) 

 (2) 

 (0) 

 (0) 

 (2) 

 (1) 

– 

 277 

 864 

– 

 10 

 657 

1 786 

 784 

 277 

1 129 

 189 

 372 

 18 

 25 

 582 

 24 

 35 

 126 

 118 

 9 

 5 

 288 

 612 

– 

 12 

 962 

1 371 

 551 

 158 

 82 

 189 

 372 

 12 

 22 

 420 

 15 

 33 

 90 

 118 

 7 

 9 

 261 

1 268 

– 

 22 

2 006 

7 050 

3 852 

 433 

1 109 

 36 

– 

 52 

 36 

 924 

 33 

 31 

 121 

– 

 6 

 16 

 11 

 1 

 82 

0 

2 176 

 20 

 5 

 0 

 31 

 8 

0 

0 

 6 

 915 

 13 

 1 

 74 

0 

 550 

 20 

 1 

 4 

 2 

 9 

0 

0 

 3 

 17 

 12 

– 

 0 

 0 

 5 

 0 

0 

 0 

 3 

 7 

 5 

 0 

0 

 62 

 45 

 (4) 

– 

 109 

 (11) 

0 

 421 

 133 

 48 

 7 

 2 

 1 

0 

0 

 2 

 22 

 0 

 5 

 8 

– 

 0 

0 

0 

– 

 (1) 

– 

 (0) 

 (0) 

 (0) 

0 

0 

 (0) 

 (1) 

 (0) 

 (0) 

 (0) 

– 

 (0) 

0 

 (0) 

– 

1 977 

2 363 

1 222 

 56 

 43 

 15 

 255 

– 

 102 

 210 

 147 

 1 

 1 

– 

1 369 

 15 

37 889 

 (580) 

20 733 

16 702 

41 340 

4 472 

 (215) 

4 950 

1 830 

7 377 

48 717 

192 

Heading 

1  Horizon Europe 

  Euratom 

Thermonuclear Experimental 
Reactor (ITER) 

  Other actions 

  Pilot projects and prep. actions 

InvestEU Fund 

  CEF - Transport 

  CEF - Energy 

  CEF - Digital 

  Digital Europe 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 
  Single Market 

  EU Anti-Fraud 

  Taxation 

  Customs 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 

  European Space Programme 

  Decentralised agencies 

Total Heading 1: Single Market, 
Innovation and Digital 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

From budget appropriations 

From assigned revenue appropriations 

Heading 

Commitm. 
carried 
forward 
from 2020 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

Commitm. 
carried 
forward 
from 2020 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

6 

7 

8 

9 

Amount 
remaining 
to be 
settled 
5=1+2+3-
4 
49 100 

 238 

39 843 

12 591 

28 028 

5 569 

 16 

9 222 

13 421 

4 170 

1 442 

1 031 

7 023 

 3 

 5 

 3 

0 

1 307 

 496 

4 981 

 0 

0 

 0 

0 

 3 

0 

 (0) 

 (0) 

– 

0 

– 

17 076 

21 930 

6 302 

17 374 

2 350 

21 326 

43 257 

Amount 
remaining 
to be 
settled 
10=6+7+
8-9 
35 049 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
2021 

11=5+10 

84 149 

18 402 

7 026 

 5 

2  Regional Development (ERDF) 

  Cohesion Fund 

Cohesion Fund contrib. to CEF-
Transport 

  Pilot projects and prep. actions 

88 758 

22 668 

6 632 

 9 

  European Social Fund Plus (ESF+) 

38 950 

Support to Turkish-Cypriot 
Community 

  European Recovery and Resilience 

  Pericles IV 

  EU Recovery 

  RescEU 

  EU4Health 

Emergency support within the 
Union (ESI) 

  Decentralised agencies 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 

  Employment and Social Innovation 

  Erasmus+ 

  European Solidarity Corps (ESC) 

  Creative Europe 

Justice 

  Rights and Values 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 

 126 

 108 

 1 

– 

 448 

 141 

 469 

 11 

 4 

 8 

 160 

 990 

 107 

 227 

 63 

 120 

 17 

 10 

 87 

 164 

 (53) 

 (42) 

 (21) 

 (1) 

 (7) 

 (5) 

 (2) 

 (0) 

– 

 (7) 

 (9) 

 0 

 (0) 

 (0) 

 (1) 

 (12) 

 (13) 

 (4) 

 (10) 

 (1) 

 (4) 

 (0) 

 (0) 

 (5) 

 (2) 

– 

 63 

 32 

 116 

 1 

 5 

 183 

 329 

 232 

 324 

– 

 11 

 89 

 40 

 80 

 0 

 3 

 191 

 59 

 509 

 316 

 3 

 10 

 57 

2 663 

2 114 

 136 

 306 

 47 

 99 

 220 

 6 

 30 

 181 

 95 

 137 

 35 

 60 

 206 

 6 

 28 

 157 

193 

 113 

 141 

 1 

 2 

 432 

 402 

 191 

 19 

 1 

 9 

 180 

1 526 

 144 

 386 

 74 

 156 

 31 

 10 

 85 

 186 

 3 

 0 

– 

0 

 17 

 2 

 0 

– 

0 

 0 

 4 

 356 

 5 

 9 

 0 

 1 

 1 

 0 

– 

 1 

 (0) 

 1 

 0 

 4 

 117 

– 

– 

0 

 (0) 

 (0) 

– 

– 

0 

– 

 (2) 

 (4) 

 (0) 

 (1) 

 (0) 

 (0) 

 (0) 

 (0) 

– 

 (0) 

98 034 

46 375 

51 660 

51 801 

 0 

0 

 153 

 9 

 70 

 10 

0 

 1 

 6 

– 

0 

 5 

 2 

 70 

 10 

0 

 1 

 2 

 0 

0 

 164 

 10 

 0 

 0 

0 

 0 

 7 

 169 

 283 

 239 

 0 

 9 

 1 

 1 

 3 

 0 

 0 

 1 

 2 

 4 

 0 

 1 

 2 

 0 

0 

 1 

 4 

 14 

 0 

 1 

 1 

 0 

 0 

 1 

 1 

 2 

 596 

 412 

 191 

 20 

 1 

 9 

 187 

1 765 

 148 

 400 

 75 

 156 

 33 

 10 

 85 

 187 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

From budget appropriations 

From assigned revenue appropriations 

Commitm. 
carried 
forward 
from 2020 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

Amount 
remaining 
to be 
settled 
5=1+2+3-
4 

Commitm. 
carried 
forward 
from 2020 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

6 

7 

8 

9 

Amount 
remaining 
to be 
settled 
10=6+7+
8-9 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
2021 

11=5+10 

160 278 

 (198) 

6 769 

71 281 

95 569 

23 468 

 (8) 

145 178 

55 174 

113 465 

209 033 

 286 

 (10) 

40 149 

40 091 

 333 

35 164 

 (2) 

15 339 

14 587 

35 914 

– 

 0 

– 

– 

 669 

 669 

– 

 333 

2 366 

 65 

2 300 

38 215 

Heading 

Total Heading 2: Cohesion, 
Resilience and Values 
3  Agricultural Guarantees 

Agricultural Fund for Rural 
Development 

  Maritime and Fisheries 

3 043 

 (15) 

2 397 

 416 

 (0) 

 110 

  Fisheries (SFPA and RFMO) 

  Decentralised agencies 

  Pilot projects and prep. actions 

 21 

– 

 12 

  Environment and Climate (LIFE) 

1 882 

Just Transition Fund 
Loan facility under Just Transition 
Mechanism 

  Decentralised agencies 

  Pilot projects and prep. actions 

Total Heading 3: Natural Resources 
and Environment 

– 

0 

 3 

 26 

4  Asylum, Migration and Integration  

3 068 

 (29) 

– 

– 

 (0) 

 (34) 

– 

0 

– 

– 

 107 

 152 

 21 

– 

 739 

 4 

– 

 50 

 4 

 738 

 150 

 21 

 3 

 23 

– 

 9 

 439 

2 148 

 1 

– 

 51 

 5 

 3 

– 

 3 

 24 

  Decentralised agencies 

  Pilot projects and prep. actions 
Border Mngmt. (IBMF) - Border 
mngmt and visa 
Border Mngmt. (IBMF) - Customs 
equipment 

  Decentralised agencies 

Total Heading 4: Migration and 
Border Management 

5  Internal Security Fund (ISF) 

  Nuclear decommissioning 

Nuclear Safety and 
decommissioning 

  Decentralised agencies 

40 438 

 (61) 

56 563 

56 086 

40 854 

 20 

 0 

– 

– 

1 219 

 (35) 

– 

 372 

– 

– 

 497 

 138 

– 

 153 

 135 

 703 

1 200 

 138 

 0 

 388 

– 

 754 

2 335 

 20 

 0 

 949 

 135 

 321 

4 679 

 (64) 

1 626 

2 480 

3 760 

 457 

 351 

 324 

 0 

 (15) 

 (0) 

 (3) 

– 

 70 

 73 

 69 

 161 

 46 

 75 

 193 

 193 

 352 

 377 

 315 

 0 

194 

0 

– 

0 

 7 

– 

– 

– 

0 

 423 

 54 

– 

0 

0 

– 

0 

 (0) 

– 

– 

– 

0 

 (0) 

 (1) 

– 

0 

 217 

 (2) 

0 

– 

 271 

 13 

0 

 0 

 0 

0 

– 

 (3) 

 (1) 

0 

 (0) 

 (0) 

0 

 0 

0 

 3 

 5 

 0 

 6 

0 

 1 

0 

 0 

0 

 3 

 0 

 0 

 6 

0 

 525 

2 922 

0 

– 

0 

 6 

 5 

– 

 0 

0 

 23 

– 

 9 

2 154 

 8 

– 

 3 

 24 

3 160 

 745 

2 837 

43 691 

 2 

 4 

0 

 3 

0 

 10 

 19 

 1 

0 

 0 

 3 

 28 

 4 

0 

 26 

0 

 10 

 67 

 5 

0 

 0 

 3 

 28 

– 

0 

2 363 

 20 

 0 

 192 

1 141 

0 

 0 

 135 

 321 

 219 

3 980 

 9 

0 

 0 

– 

 360 

 377 

 315 

 0 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount 
remaining 
to be 
settled 
5=1+2+3-
4 

 1 

 24 

 322 

 746 

 226 

 2 

Annual accounts of the European Union 2021 

From budget appropriations 

From assigned revenue appropriations 

Heading 

Commitm. 
carried 
forward 
from 2020 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

Commitm. 
carried 
forward 
from 2020 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

6 

7 

8 

9 

Amount 
remaining 
to be 
settled 
10=6+7+
8-9 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
2021 

11=5+10 

0 

– 

– 

 0 

0 

 0 

0 

– 

– 

– 

0 

– 

0 

 0 

 7 

 17 

0 

– 

 28 

0 

– 

 0 

 0 

0 

 0 

 8 

0 

 0 

 7 

 17 

0 

– 

 33 

 1 

 24 

 329 

 762 

 226 

 2 

2 397 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 

  European Defence (Research) 

 2 

 26 

– 

  European Defence (Non Research) 

 322 

– 

 (3) 

 (0) 

 (0) 

– 

 (0) 

– 

 20 

 323 

 623 

 227 

– 

 1 

 19 

 1 

 198 

 1 

 5 

– 

 7 

  Military Mobility 

  Pilot projects and prep. actions 
Total Heading 5: Security and 
Defence 
Neighbourhood, Developm. and 
Intl. Cooperation 
Instrument for Nuclear Safety 
(EINS) 

6 

1 489 

 (22) 

1 597 

 700 

2 364 

 13 

 (1) 

18 527 

 (444) 

10 833 

5 656 

23 259 

 213 

 (12) 

 127 

 134 

 194 

23 453 

 116 

 (9) 

 38 

 17 

 127 

  Humanitarian Aid (HUMA) 

1 301 

 (12) 

2 168 

2 405 

1 052 

Common Foreign and Security 
Policy (CFSP) 
Overseas Countries and Territories 
(OCT) 

  Other actions 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 

 137 

 9 

 1 

 4 

 (2) 

– 

 (0) 

 (0) 

 153 

 (20) 

 352 

 341 

 146 

 63 

 17 

– 

 92 

 7 

 17 

 2 

 72 

 65 

 0 

 2 

 154 

  Pre-Accession Assistance (IPA III) 

7 464 

 (182) 

1 566 

1 988 

6 860 

  Pilot projects and prep. actions 

 0 

 (0) 

– 

– 

– 

 1 

 53 

 22 

0 

0 

0 

 0 

 785 

0 

– 

 (4) 

 (1) 

0 

0 

0 

 (0) 

 (0) 

0 

 0 

 28 

 56 

0 

0 

0 

 1 

 30 

0 

– 

 46 

 46 

0 

0 

0 

 0 

 1 

 31 

 32 

0 

0 

0 

 0 

 204 

 610 

0 

0 

 128 

1 084 

 178 

 65 

 0 

 2 

 154 

7 471 

– 

Total Heading 6: Neighbourhood 
and the World 
7  Staff Pensions 

(Pensions former Members) EP 

(Pensions former Members) ECC 
(Pensions former Members) 
Commission 
(Pensions former Members) CJEU 

(Pensions former Members) ECA 

27 712 

 (670) 

15 130 

10 506 

31 666 

1 074 

 (17) 

 242 

 429 

 869 

32 535 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

2 173 

2 173 

 11 

 1 

 7 

 12 

 5 

 11 

 1 

 7 

 12 

 5 

195 

– 

– 

– 

– 

– 

– 

– 

0 

0 

0 

0 

0 

– 

0 

0 

0 

0 

0 

– 

0 

0 

0 

0 

0 

– 

0 

0 

0 

0 

0 

– 

0 

0 

0 

0 

0 

– 

– 

– 

– 

– 

– 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Heading 

From budget appropriations 

From assigned revenue appropriations 

Commitm. 
carried 
forward 
from 2020 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

Amount 
remaining 
to be 
settled 
5=1+2+3-
4 

Commitm. 
carried 
forward 
from 2020 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

6 

7 

8 

9 

Amount 
remaining 
to be 
settled 
10=6+7+
8-9 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
2021 

11=5+10 

(Pensions former Members) 
Ombudsman 
(Pensions former Members) EDPS 

  European schools 

  Remuneration statutory staff 

  Remuneration external staff 

  Members - Salaries and allowances 

  Members - Temporary allowances 

  Recruitment costs 

  Termination of service 

  Training costs 

  Social and Mobility 

Information and comm. technology 

  Rents and purchases 

Linked to buildings 

  Security 

  Mission and representation 

  Meetings, committees, conference 

  Official journal 

  Publications 

  Acquisition of information 

  Studies and investigations 

General equipment, vehicle, 
furniture 
Linguistic external services 

  Other administrative expenditure 

  Pilot projects and prep. actions 
Administrative expenditure of 
Other Institutions 

– 

– 

 0 

 0 

 35 

 0 

– 

 3 

– 

 10 

 8 

 122 

 3 

 49 

 24 

 7 

 6 

 1 

 5 

 1 

 11 

 13 

 3 

 7 

 2 

– 

– 

– 

 (0) 

 (4) 

 (0) 

– 

 (1) 

– 

 (1) 

 (1) 

 (2) 

 (0) 

 (1) 

 (1) 

 (6) 

 (5) 

 (0) 

 (0) 

 (0) 

 (0) 

 (1) 

 (0) 

 (1) 

 (0) 

 0 

 0 

 197 

2 494 

 238 

 15 

 3 

 26 

 8 

 17 

 24 

 298 

 318 

 86 

 63 

 24 

 5 

 2 

 13 

 4 

 5 

 24 

 24 

 18 

– 

 0 

 0 

 197 

2 494 

 231 

 13 

 3 

 27 

 8 

 15 

 21 

 274 

 303 

 95 

 58 

 13 

 2 

 3 

 12 

 3 

 12 

 25 

 23 

 18 

 1 

– 

– 

 0 

 0 

 38 

 2 

– 

 2 

– 

 11 

 8 

 143 

 18 

 39 

 28 

 11 

 3 

 1 

 6 

 2 

 4 

 11 

 4 

 6 

 0 

0 

0 

 1 

– 

 3 

– 

0 

 0 

0 

 1 

 7 

 20 

 2 

 2 

 2 

 0 

 0 

 0 

 2 

– 

 0 

 3 

 0 

 1 

 0 

0 

0 

– 

– 

 (2) 

– 

0 

– 

0 

 (0) 

 (2) 

 (0) 

– 

 (0) 

 (0) 

 (0) 

 (0) 

– 

 (0) 

– 

– 

 (0) 

 (0) 

 (0) 

 (0) 

0 

0 

 15 

 31 

 33 

 0 

0 

 1 

0 

 3 

 17 

 50 

 27 

 19 

 6 

 1 

 1 

 0 

 3 

 0 

 0 

 3 

 10 

 4 

– 

0 

0 

 14 

 31 

 33 

 0 

0 

 0 

0 

 3 

 15 

 49 

 28 

 9 

 3 

 0 

 1 

 0 

 3 

 0 

 0 

 5 

 10 

 4 

– 

0 

0 

 2 

– 

 2 

– 

0 

 0 

0 

 1 

 7 

 20 

 0 

 12 

 4 

 0 

 1 

– 

 1 

 0 

 0 

 2 

 1 

 2 

– 

– 

– 

 2 

 0 

 39 

 2 

– 

 2 

– 

 12 

 15 

 163 

 18 

 51 

 32 

 12 

 4 

 1 

 7 

 2 

 4 

 13 

 4 

 8 

 0 

 591 

 (66) 

4 256 

4 155 

 626 

 36 

 (32) 

 335 

 281 

 57 

 684 

196 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Heading 

From budget appropriations 

From assigned revenue appropriations 

Commitm. 
carried 
forward 
from 2020 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

Amount 
remaining 
to be 
settled 
5=1+2+3-
4 

Commitm. 
carried 
forward 
from 2020 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

6 

7 

8 

9 

Amount 
remaining 
to be 
settled 
10=6+7+
8-9 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
2021 

11=5+10 

Total Heading 7: European Public 
Administration 

O  Innovation Fund (IF) 

  Other actions 

S 

  Total Heading O: Outside MFF 
Solidarity and Emergency Aid 
(SEAR) 
European Globalisation Adjustment 
(EGF) 

  Brexit Adjustment Reserve 
Total Heading S: Solidarity 
mechanisms within and outside the 
Union (Special instruments) 

 901 

 (92) 

10 371 

10 215 

 964 

0 

0 

0 

– 

 0 

– 

 0 

0 

0 

0 

– 

– 

– 

– 

– 

– 

– 

 791 

 24 

 407 

– 

– 

– 

 791 

 24 

 407 

1 223 

1 223 

– 

– 

– 

– 

– 

– 

– 

 80 

 4 

 7 

 11 

0 

0 

0 

0 

 (37) 

 (1) 

 (1) 

 (2) 

0 

0 

0 

0 

 559 

 147 

 52 

 199 

0 

0 

0 

0 

 490 

 11 

 50 

 61 

0 

0 

0 

0 

 111 

 138 

 8 

 147 

0 

0 

0 

0 

1 076 

 138 

 8 

 147 

– 

– 

– 

– 

  Total 

273 386 

(1 687) 

114 011 

169 192 

216 518 

29 811 

 (283) 

154 334 

58 805  125 057 

341 575 

197 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
IMPLEMENTATION OF THE BUDGET BY INSTITUTION 

Annual accounts of the European Union 2021 

7.1.  IMPLEMENTATION OF BUDGET REVENUE  

EUR million 

Income appropriations 

Entitlements established 

Revenue 

Institution 

Initial adopted 
budget 

Final adopted 
budget 

Current 
year 

Carried 
over 

Total 

1 

2 

3 

4 

5=3+4 

On entitle- 
ments of 
current year 
6 

On entitle- 
ments 
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 

 176 

 59 

 176 

 59 

 236 

 103 

 7 

 1 

 243 

 104 

 212 

 102 

 3 

 1 

 215 

 102 

 122 % 

 173 % 

 28 

 2 

Commission 

Court of Justice 

Court of Auditors 

Economic and Social Committee 

Committee of the Regions 

Ombudsman 

European Data Protection Supervisor 

European External Action Service 

165 665 

167 616 

244 942 

19 411 

264 354 

237 838 

1 078 

238 916 

 143 % 

25 437 

 60 

 23 

 13 

 10 

 1 

 2 

 51 

 60 

 23 

 13 

 10 

 1 

 2 

 51 

 59 

 24 

 22 

 11 

 1 

 2 

 241 

 0 

 0 

 0 

 0 

 0 

 0 

 3 

 59 

 24 

 22 

 12 

 1 

 2 

 59 

 24 

 22 

 11 

 1 

 2 

 244 

 240 

 0 

 0 

 0 

 0 

 0 

 0 

 3 

 59 

 24 

 22 

 12 

 1 

 2 

 99 % 

 102 % 

 171 % 

 112 % 

 93 % 

 96 % 

 243 

 480 % 

 0 

 0 

 0 

– 

– 

– 

 0 

Total 

166 060 

168 011 

245 641 

19 422 

265 063 

238 511 

1 085  239 596 

143 % 

25 467 

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 193.6 million (2020: 
EUR  148.1  million,  however,  in  2020  EDF  was  not  covered  by  the  NDICI  funds,  hence  the  increase  in  2021).  From  the  EDF  legacy  and  the  Trust  Funds 
EUR 18.7 million (2020: EUR 64.4 million) were received. 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.  

198 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
7.2.  IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Union 2021 

EUR million 

Institution 

Total 
appropriat. 
available 

Commitments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over to 
2022 
from 
assigned 
revenue 

from final 
adopted 
budget 

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 

2 215 

2 033 

European Council and 
Council 

 679 

 523 

 75 

0 

 46 

2 154 

 97 % 

 43 

 566 

 83 % 

 22 

0 

 30 

 41 

 52 

 41 

 8 

 71 

Commission 

601 452 

109 244 

 511 

153 999 

263 755 

 44 % 

4 043 

283 739 

287 781 

49 239 

Court of Justice 

Court of Auditors 

Economic and Social 
Committee 

Committee of Regions 

Ombudsman 

European Data-
protection Supervisor 

European External 
Action Service 

 445 

 154 

 155 

 108 

 13 

 19 

 438 

 149 

 132 

 106 

 11 

 17 

0 

0 

0 

0 

0 

0 

 1 

 0 

 4 

 1 

– 

– 

 439 

 98 % 

 149 

 97 % 

 136 

 88 % 

 106 

 99 % 

 11 

 89 % 

 17 

 86 % 

1 091 

 763 

 10 

 239 

1 012 

 93 % 

0 

0 

0 

0 

0 

0 

0 

 1 

 0 

 5 

 0 

– 

– 

 1 

 0 

 5 

 0 

– 

– 

 75 

 75 

 6 

 5 

 13 

 1 

 1 

 3 

 5 

– 

0 

 5 

0 

0 

0 

0 

0 

0 

– 

 0 

 0 

 9 

 71 

 671 

49 916 

 0 

 0 

 0 

 0 

– 

– 

 0 

 6 

 5 

 13 

 1 

 1 

 3 

 5 

Total 

606 331  113 415 

 596  154 334  268 345 

44 % 

4 065  283 891  287 956 

49 354 

 5 

 671 

50 030 

199 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       
7.3.  IMPLEMENTATION OF PAYMENT APPROPRIATIONS  

Annual accounts of the European Union 2021 

Institution 

Total 
approp. 
available 

from 
final 
adopted 
budget 

Payments made 

from 
carry- 
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over to 
2022 

from final 
adopted 
budget 

from 
assigned 
revenue 

Total 

Appropriations lapsing 

from 
final 
adopted 
budget 

from 
carry- 
overs 

from 
assigned 
revenue 

Total 

1 

2 

3 

4 

5=2+3+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

13 

EUR million 

European Parliament 

2 571 

1 650 

 393 

 35 

2 078 

 81 % 

 402 

European Council and 
Council 

 749 

 461 

 60 

 43 

 564 

 75 % 

 62 

 40 

 42 

 442 

 104 

Commission 

241 321 

160 032 

1 203 

62 326 

223 561 

 93 % 

3 591 

13 827 

17 417 

Court of Justice 

Court of Auditors 

Economic and Social 
Committee 

Committee of Regions 

Ombudsman 

European Data-protection 
Supervisor 

European External Action 
Service 

 479 

 163 

 408 

 140 

 168 

 113 

 119 

 13 

 21 

 91 

 9 

 16 

 30 

 8 

 10 

 10 

 0 

 1 

 0 

 0 

 3 

 1 

– 

– 

 438 

 92 % 

 148 

 91 % 

 126 

 75 % 

 101 

 85 % 

 10 

 76 % 

 17 

 80 % 

 30 

 8 

 19 

 15 

 2 

 1 

 1 

 0 

 7 

 1 

– 

– 

 31 

 8 

 25 

 15 

 2 

 1 

1 209 

 648 

 106 

 199 

 954 

 79 % 

 114 

 115 

 230 

 12 

 71 

 82 

 6 

 5 

 13 

 1 

 1 

 3 

 5 

 38 

 10 

 2 

 1 

 52 

 82 

 250 

 11 

 343 

 3 

 1 

 3 

 1 

 0 

 0 

 21 

 0 

 0 

 0 

 0 

– 

– 

 0 

 9 

 6 

 16 

 2 

 1 

 3 

 26 

Total 

246 812  163 568 

1 821 

62 607  227 996 

92 % 

4 244 

14 032 

18 275 

 199 

 327 

 14 

 541 

200 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

IMPLEMENTATION OF THE AGENCIES' BUDGETS 

The agencies’ revenue and expenditure, as shown in the reports 8.1 and 8.2 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 (8.1) and expenditure (8.2). 

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. 

8.1.  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 
European Agency for Safety and Health at Work 
European Asylum Support Office 
European Aviation Safety Agency 
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 Climate, Infrastructure and Environment Executive Agency 
European Education and Culture Executive Agency 
European Environment Agency 
European Fisheries Control Agency 
European Food Safety Authority 
European Foundation for the Improvement of Living and Working Conditions 
European Health and Digital Executive Agency 
European Innovation Council and SMEs Executive Agency 
European Institute for Gender Equality 
European Insurance and Occupational Pensions Authority 
European Labour Authority 
European Maritime Safety Agency 
European Medicines Agency 
European Monitoring Centre for Drugs and Drug Addiction 
European Public Prosecutor's Office 
European Research Council Executive Agency 
European Research Executive Agency 
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 Agency for the Space Programme 
European Union Fundamental Rights Agency 
European Union Intellectual Property Office 
Fusion for Energy Joint Undertaking 
Translation Centre for the Bodies of the European Union 

Funding 
MFF 
heading 

4 
1 
1 
N/A 
1, 2b 
2b 
4 
1 
1 
4 
2b 
2b 
1 
1, 2a, 3, 5 
2b, 6 
3 
3 
2b 
2b 
1, 2b 
1, 2a 
2b 
1 
2b 
1 
2b 
5 
2b 
1 
1, 3 
1 
2b 
2b 
1 
5 
5 
1 
1 
2b 
N/A 
1 
7 

Final 
adopted 
budget 

EUR million 

Revenue 
received 

 264 
 24 
 7 
 19 
 11 
 16 
 142 
 204 
 49 
 535 
 58 
 19 
 108 
 45 
 54 
 52 
 21 
 119 
 22 
 27 
 49 
 9 
 33 
 22 
 85 
 379 
 17 
 26 
 55 
 88 
 59 
 21 
 44 
 23 
 178 
 10 
 31 
 44 
 24 
 534 
 614 
 52 

 268 
 24 
 7 
 19 
 3 
 15 
 153 
 168 
 50 
 545 
 173 
 19 
 115 
 45 
 54 
 67 
 22 
 121 
 23 
 27 
 43 
 9 
 33 
 14 
 106 
 408 
 19 
 27 
 56 
 88 
 61 
 22 
 46 
 23 
 177 
 8 
 33 
1 870 
 25 
 313 
 750 
 46 

Total 

4 195 

6 092 

201 

 
  
 
 
 
 
Annual accounts of the European Union 2021 

Type of agencies revenue 

Commission subsidy 
Fee income 
Other income 
Total 

  EUR million 
Amounts 
received 

4 155 
 842 
1 095 
6 092 

8.2.  COMMITMENT AND PAYMENT APPROPRIATIONS 

BY AGENCY 

EUR million 

Commitment 
appropriations 

Commit. 
made 

Total 
appropr. 
available 

Payment 
appropriations 
Total 
appropr. 
available 

Payments 
made 

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 
European Agency for Safety and Health at Work 
European Asylum Support Office 
European Aviation Safety Agency 
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 Climate, Infrastructure and Environment Executive 
Agency 
European Education and Culture Executive Agency 
European Environment Agency 
European Fisheries Control Agency 
European Food Safety Authority 
European Foundation for the Improvement of Living and 
Working Conditions 
European Health and Digital Executive Agency 
European Innovation Council and SMEs Executive Agency 
European Institute for Gender Equality 
European Insurance and Occupational Pensions Authority 
European Labour Authority 
European Maritime Safety Agency 
European Medicines Agency 
European Monitoring Centre for Drugs and Drug Addiction 
European Public Prosecutor's Office 
European Research Council Executive Agency 
European Research Executive Agency 
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 Agency for the Space Programme 
European Union Fundamental Rights Agency 
European Union Intellectual Property Office 
Fusion for Energy Joint Undertaking 
Translation Centre for the Bodies of the European Union 
Total 

202 

 286 
 24 
 7 
 20 
 11 
 16 
 169 
 278 
 50 
 557 
 182 
 19 
 116 
 45 
 54 
 68 
 22 
 130 
 23 
 27 
 45 
 9 
 33 
 23 
 114 
 408 
 20 
 26 
 55 
 88 
 61 
 22 
 60 
 23 
 186 
 26 
 38 
10 102 
 26 
 558 
1 070 
 53 
15 151 

 269 
 22 
 7 
 18 
 2 
 16 
 139 
 183 
 49 
 523 
 169 
 19 
 110 
 44 
 53 
 61 
 21 
 130 
 22 
 26 
 43 
 9 
 33 
 22 
 107 
 386 
 19 
 25 
 55 
 88 
 60 
 21 
 57 
 23 
 176 
 12 
 37 
6 419 
 25 
 286 
1 066 
 44 
10 897 

 291 
 27 
 10 
 20 
 12 
 22 
 177 
 286 
 54 
 725 
 195 
 20 
 129 
 47 
 58 
 92 
 25 
 133 
 28 
 27 
 48 
 11 
 38 
 26 
 125 
 480 
 21 
 27 
 57 
 96 
 69 
 23 
 57 
 29 
 210 
 30 
 37 
2 666 
 33 
 18 
 765 
 56 
7 301 

 260 
 19 
 8 
 17 
 2 
 15 
 136 
 149 
 46 
 421 
 122 
 19 
 109 
 42 
 50 
 64 
 18 
 118 
 23 
 20 
 42 
 8 
 31 
 10 
 102 
 365 
 19 
 19 
 54 
 88 
 61 
 21 
 45 
 24 
 167 
 12 
 33 
1 614 
 25 
 282 
 745 
 43 
5 470 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2021 

Type of expenditure 

Staff 

Administrative 

Operational 

Total 

  EUR million 

Commitment 
appropriations 

Payment appropriations 

Total appropr. 
available 

Commit. 
made 

Total appropr. 
available 

Payments 
made 

1 749 

 472 

12 930 

1 478 

 439 

8 980 

15 151 

10 897 

1 417 

 498 

5 385 

7 301 

1 462 

 412 

3 596 

5 470 

203 

 
 
 
 
 
Annual accounts of the European Union 2021 

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. 

204 

 
 
 
Available for sale financial assets 

Annual accounts of the European Union 2021 

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  the  total  cost  of  legal  obligations  (contracts,  grant  agreements/ 
decisions) that could be signed in the current financial year. 

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. 

205 

 
Effective interest rate 

Annual accounts of the European Union 2021 

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 and liabilities at amortized cost 

All  financial  assets  and  liabilities  that  are  according  to  International  Public  Sector  Accounting  Standards 
measured at armotized cost. 

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. 

206 

 
Own resources 

Annual accounts of the European Union 2021 

The main source of revenues for the EU budget. The different own resources are listed in the applicable 
Own  Resource  Decision  (Council  Decision  (EU,  Euratom)  2020/2053)  and  are  traditional own  resources, 
VAT-based own resource, GNI-based own resource and non-recycled plastic packaging waste-based own 
resource. 

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  (Council  Decision  (EU, 
Euratom) 2020/2053) 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. 

207 

 
 
Annual accounts of the European Union 2021 

LIST OF ABBREVIATIONS  

AAR 

AC 

AFS 

Annual Activity Report 

Amortised Cost 

Available For Sale 

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 

CPF 

CPR 

Common Provisioning Fund 

Common Provisions Regulation 

CRII+ 

Coronavirus Response Investment Initiative Plus 

D&WM 

Decommissioning and Waste Management 

EAD 

Exposure At Default 

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 

European Court of Auditors 

208 

 
 
 
Annual accounts of the European Union 2021 

ECB  

ECL 

European Central Bank 

Expected Credit Losses 

ECOFIN 

Economic and Financial Affairs Council 

ECSC i.L.  

European Coal and Steel Community in Liquidation 

EDF 

EDIF 

EEA 

EEAS 

EFSD 

European Development Fund 

Guarantee Facility under the Western Balkan 

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  

EIB Resilience Initiative 

European Space Agency 

European Social Fund 

European Structural and Investment Funds 

European Stability Mechanism 

209 

 
Annual accounts of the European Union 2021 

ETF  

EU  

European Technology Start up Facility 1998 

European Union 

EUMETSAT  

European Organisation for the Exploitation of Meteorological Satellites 

Euratom 

European Atomic Energy Community 

FIFO 

FP7  

FR  

First-in, First-out 

7th Research Framework Programme for Research and Technological Development 

EU Financial Regulation 

FSDA  

Financial Statement Discussion and Analysis 

FVNA 

FVSD 

GDP 

GNI  

Fair Value through Net Assets/Equity 

Fair Value through Surplus or Deficit 

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 

IF 

IT  

Innovation Fund 

Information Technology 

ITER  

International Thermonuclear Experimental Reactor 

JRC  

JU  

LGD 

Joint Research Centre 

Joint Undertaking 

Loss given Default Rate 

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 

NDICI 

Neighbourhood, Development and International Cooperation Instrument 

NGEU 

NextGenerationEU 

210 

 
 
Annual accounts of the European Union 2021 

ORD  

Own Resources Decision 

PBI  

PD 

Project Bond Initiative 

Probability of Default 

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 

RRF 

RTD  

S&P  

Recovery and Resilience Facility 

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  

SEMED  

Southern and Eastern Mediterranean Micro, Small and Middle sized Entreprises Financial 
Inclusion Programme 

SICR 

Significant Increase of Credit Risk 

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 

211