COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS ANNUAL ACCOUNTS OF THE EUROPEAN COMMISSION FOR THE FINANCIAL YEAR 2021
Date: 2022-06-23
Institutions: Directorate-General for Budget, European Commission
Subjects: activity report, balance sheet, closing of accounts, consolidated account, general budget (EU), implementation of the budget

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 23.6.2022  COM(2022) 322 final     COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN   PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS     ANNUAL ACCOUNTS OF THE EUROPEAN COMMISSION   FOR THE FINANCIAL YEAR 2021                                                                                                 
 
 
Annual accounts of the European Commission 2021 

CONTENTS 

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

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

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

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

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

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

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

BUDGETARY IMPLEMENTATION REPORTS ........................................................... 65 

1 

 
  
 
Annual accounts of the European Commission 2021 

CERTIFICATION OF THE ACCOUNTS 

The annual accounts of the European Commission for  the year 2021 have been prepared in accordance 
with the Financial Regulation applicable to the general budget of the European Union and the accounting 
rules adopted by myself in my capacity as the Commission's Accounting Officer, as are to be applied by 
all the institutions and Union bodies. 

I  acknowledge  my  responsibility  for  the  preparation  and  presentation  of  the  annual  accounts  of  the 
European Commission in accordance with Article 77 of the Financial Regulation. 

I have obtained from the authorising officers, who certified its reliability, all the information necessary for 
the  production  of  the  accounts  that  show  the  European  Commission's  assets  and  liabilities  and  the 
budgetary implementation. 

I hereby certify that based on this information, and on such checks as I deemed necessary to sign off the 
accounts,  I  have  a  reasonable  assurance  that  the  accounts  present  fairly,  in  all  material  aspects,  the 
financial position, the results of the operations and the cash flow of the European Commission. 

Rosa ALDEA BUSQUETS 

Accounting Officer of the Commission 

17 June 2022 

2 

 
 
 
 
 
 
Annual accounts of the European Commission 2021 

EUROPEAN COMMISSION 
FINANCIAL YEAR 2021 

FINANCIAL STATEMENTS AND 
EXPLANATORY NOTES 

It should be noted that due to the rounding of figures into millions of euros, some financial data in the 
tables below may appear not to add-up.

3 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

CONTENTS 

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

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

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

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

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

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

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

NOTES TO THE BALANCE SHEET ............................................................. 29 

NOTES TO THE STATEMENT OF FINANCIAL PERFORMANCE ........................ 49 

CONTINGENT LIABILITIES AND ASSETS .................................................. 54 

BUDGETARY AND LEGAL COMMITMENTS ................................................. 56 

FINANCIAL RISK MANAGEMENT .............................................................. 57 

RELATED PARTY DISCLOSURES .............................................................. 63 

EVENTS AFTER THE BALANCE SHEET DATE .............................................. 64 

4 

 
 
 
Annual accounts of the European Commission 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 

Note 

31.12.2021 

 EUR million 
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 

 365 
9 493 
1 192 
180 637 
60 665 
40 804 
293 157 

6 512 
33 675 
31 555 
 79 
43 464 
115 285 
408 441 

(121 848) 
(2 763) 
(214 380) 
(338 990) 

 (328) 
(31 090) 
(47 644) 
(77 057) 
(156 120) 
(495 111) 

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

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

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

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

(86 669) 

(37 828) 

Reserves 
Amounts to be called from Member States* 
NET ASSETS 

2.14 
2.15 

 51 
(86 721) 
(86 669) 

3 501 
(41 329) 
(37 828) 

* The European Parliament adopted a budget on 24  November 2021  which provides  for the payment  of the Commission's  short-term 
liabilities from own resources to be collected by, or  called up from, the Member States in 2021. Additionally, under article 83 of the 
Staff  Regulations  (Council  Regulation  No  259/68  of  29  February  1968  as  amended),  the  Member  States  shall  jointly  guarantee  the 
liability for pensions. 

5 

 
 
 
 
 
 
   
 
 
 
   
 
 
 
 
 
 
   
 
   
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

STATEMENT OF FINANCIAL PERFORMANCE 

Note 

2021 

EUR million 
2020 

REVENUE 
Revenue from non-exchange transactions 
GNI resources 
Traditional own resources 
VAT 
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 & 
     Cohesion Fund 

     European Social Fund 
     Other 

Implemented by the Commission, executive agencies 
and trust funds 

Implemented by other EU agencies and bodies 
Implemented by third countries and int. organisations 
Implemented by other entities 
Staff and pension costs 
Finance costs 
Other 
Total Expenses 

ECONOMIC RESULT OF THE YEAR 

3.1 

3.2 

3.3 
3.4 

3.5 

3.6 

3.7 
3.7 
3.7 
3.8 
3.9 
3.10 

115 955 
20 590 
18 340 
5 831 
1 990 
1 762 
1 122 
2 753 
168 342 

5 090 
 727 
5 817 
174 159 

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

3 424 
 687 
4 111 
219 448 

(40 829) 

(15 451) 

(40 461) 

(14 467) 

(46 932) 

(41 118) 

(16 727) 
(4 835) 

(63 025) 

(4 211) 
(4 512) 
(3 225) 
(8 593) 
(4 158) 
(3 736) 
(216 234) 

(42 075) 

(13 677) 
(2 701) 

(22 120) 

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

57 349 

6 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

CASHFLOW STATEMENT 

Economic result of the year 
Operating activities 
Amortisation 
Depreciation 
(Increase)/decrease in loans 
(Increase)/decrease in pre-financing 

(Increase)/decrease in exchange receivables and non-
exchange recoverables 

(Increase)/decrease in inventories 
Increase/(decrease) in pension and other employee benefits   
Increase/(decrease) in provisions 

Increase/(decrease) in financial liabilities (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 
movements 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 
(42 075) 

 27 
 758 
(70 281) 
(30 887) 

1 838 

 (4) 
6 440 
(2 157) 

60 129 

14 538 

13 350 

(1 769) 

EUR million 
2020 
57 349 

 33 
 762 
(40 631) 
(11 572) 

(50 624) 

 (13) 
18 359 
 662 

40 592 

5 314 

(2 667) 

(3 218) 

(3 241) 

(15 131) 

(1 757) 

 44 

(1 888) 

(1 161) 

 (604) 

 3 

(4 703) 

(1 196) 

 (629) 

 (62) 

91 000 
28 084 

28 084 
15 380 
43 464 

(3 157) 

(3 157) 
18 538 
15 380 

7 

 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
STATEMENT OF CHANGES IN NET ASSETS 

Annual accounts of the European Commission 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) 
(80 179) 
 (173) 
– 
(15 131) 
 22 
(3 218) 
57 349 
(41 329) 
1 693 
(39 636) 
– 
– 
(3 241) 
– 
(1 769) 
(42 075) 
(86 721) 

Other reserves 

Fair value 
reserve 

2 930 
 173 
– 
– 
 (71) 
– 
– 
3 031 
(3 043) 
 (12) 
– 
– 
– 
 63 
– 
– 
 51 

 377 
– 
 93 
– 
- 
– 
– 
 470 
 (470) 
– 
– 
– 
– 
– 
– 
– 
– 

EUR million 

Net Assets 

(76 873) 
– 
 93 
(15 131) 
 (49) 
(3 218) 
57 349 
(37 828) 
(1 820) 
(39 648) 
– 
– 
(3 241) 
 63 
(1 769) 
(42 075) 
(86 669) 

8 

 
 
 
 
 
 
 
 
 
  
 
Annual accounts of the European Commission 2021 

NOTES TO THE FINANCIAL STATEMENTS 

For further information in addition to the notes below, please also see the 2021 EU consolidated annual 
accounts. 
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.  

9 

 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

1. 

SIGNIFICANT ACCOUNTING POLICIES 

The European Commission (hereinafter referred to as the Commission) applies the accounting policies of 
the  European  Union  (hereinafter  referred  to  as  the  EU).  A  summary  of  the  significant  EU  accounting 
policies is given below. 

1.1.  LEGAL BASIS AND ACCOUNTING RULES 

The accounts of the EU are kept in accordance with Regulation (EU, Euratom) 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. 

10 

 
Annual accounts of the European Commission 2021 

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. 

Financial guarantee accounting 

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 

Category              

Prior EAR 11 

Net carrying 
amount 
31.12.2020 

Measurement 

Category           

Revised EAR 11 

EUR million 
Net carrying 
amount 
01.01.2021 

Financial assets  

Loans 

Debt and equity 
investments 
Derivative assets 

Receivables 

Cash and cash 
equivalents 
Financial liabilities  

Loans and 
receivables 

93 268 

Amortized Cost 
FVSD 

Available for Sale 

18 069  FVSD 

FVSD 

Loans and 
receivables 

 199  FVSD 

3 139 

Amortized Cost 
FVSD 

Available for Sale 

15 380  Amortized Cost 

Financial guarantees 

Financial 
Guarantee Liability 
Provisions (EAR10) 
Borrowings 
Amortized Cost 
Other financial liabilities  Amortized Cost 
Derivative liabilities 
Payables 

FVSD 
Amortized Cost 

 (90)  Financial Guarantee 

(2 523) 

Liability 

(93 192)  Amortized Cost 
(1 055)  Amortized Cost 

 (4)  FVSD 

(33 107)  Amortized Cost 

93 535 
 2 

18 069 

 199 
3 173 
3 482 

15 380 

(7 889) 

(93 521) 
(1 055) 
 (4) 
(33 107) 

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: 

11 

 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
Annual accounts of the European Commission 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 

18 069 

 199 

93 268 

111 536 

3 139 

(18 069) 

18 069 
 2 

– 

18 270 

 329 

 (60) 

 (2) 

– 

93 535 

 269 

111 805 

 33 

3 484 

3 139 

– 

3 517 

(2 523) 

2 522 

(2 523) 

2 522 

– 

 (90) 

(2 522) 

6 656 

6 656 

 (1) 

 (1) 

(94 248) 

 (4) 

(5 277) 

(7 889) 

 (329) 

(94 577) 

 (4) 

(94 342) 

(2 522) 

(5 606) 

(102 469) 

(1 820) 

12 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 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: 

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 

 Balance at 
31.12.2020  

Release of 
reserves 

Other impacts on 
net assets 

EUR million 
 Balance at 
01.01.2021  

3 501 

(41 329) 

 (470) 

(3 043) 

 470 

3 043 

 (12) 

(37 828) 

– 

(1 820) 

(39 648) 

(1 820)   

(39 636) 

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  

01.01.2021 

EUR million 

12-months 
Expected 
Credit Loss 

Life-time 
Expected 
Credit Loss 

Total 
impairment 
allowance 

 (739) 

 (49) 

 (25) 

 (73) 

 (726) 
 (13) 

 (182) 

– 
 (49) 

– 
 (25) 

– 
 (73) 

 (149) 

 (149) 

(2 523) 

 (859) 

(5 143) 

(6 002) 

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

13 

 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 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 

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Annual accounts of the European Commission 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 

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Annual accounts of the European Commission 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. 

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Annual accounts of the European Commission 2021 

Leases 

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

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

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

1.5.3. 

Impairment of non-financial assets 

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

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

1.5.4. 

Investments accounted for using the equity method 

Participations in associates and joint ventures 

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

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Annual accounts of the European Commission 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. 

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Annual accounts of the European Commission 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; 

 

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

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

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. 

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Annual accounts of the European Commission 2021 

 

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. 
Subsequent measurement 

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 6.3). 

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 Commission 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  6.3),  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 Commission 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. 

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

i. 

ii. 

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

Joint  Sickness  Insurance  Scheme  (JSIS):  Under  this  scheme,  the  EU  provides  health  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’. 

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

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When  benefits  provided  are  changed  or  curtailed,  the  resulting  change  in  benefits  that  relates  to  past 
service  or  the  gain  or  loss  on  curtailment  is  recognised  immediately  in  the  statement  of  financial 
performance.  Gains  and  losses  on  settlement  are  recognised  when  the  settlement  occurs.  Past  service 
cost  is  recognised  immediately  in  the  statement  of  financial  performance,  unless  the  changes  are 
conditional on the employees remaining in service for a specified period of time. 

1.5.11.  Provisions 

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

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

1.5.12.  Financial liabilities 

Financial  liabilities  are  classified  as  financial  liabilities  at  fair  value  through  surplus  or  deficit,  financial 
liabilities carried at amortised cost, or as financial guarantee 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 6.3). 

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 

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Annual accounts of the European Commission 2021 

has  an  unconditional  right  to  defer  the  settlement  of  the  liability  for  at  least  twelve  months  after  the 
reporting date. 

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

Recoverables  from  non-exchange  transactions  and  related  revenues  are  recognised  when  the  relevant 
monthly  ‘A’  statements  (including  duties  collected  and  amounts  due  that  are  guaranteed  and  not 
contested) are received from the Member States. At the reporting date, revenue collected by the Member 
States for the period but not yet paid to the Commission is estimated and recognised as accrued revenue. 
The  quarterly  ‘B’  statements  (including  duties  neither  collected  nor  guaranteed,  as  well  as  guaranteed 
amounts  that  have  been  contested  by  the  debtor)  received  from  the  Member  States  are  recognised  as 
revenue less the collection costs to which they are  entitled. In addition, a value reduction is recognised 
for the amount of the estimated recovery gap. 

Fines 

Revenue  from  fines  is  recognised  when  the  EU’s  decision  imposing  a  fine  has  been  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 

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 3.8. 

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. 

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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). 

28 

 
 
 
Annual accounts of the European Commission 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 

 470 
 130 
 3 
– 
– 
 603 
 (214) 
 (27) 
– 
 3 
– 
– 
 (238) 
 365 
 256 

29 

 
 
 
 
 
 
2.2.  PROPERTY, PLANT AND EQUIPMENT 

Annual accounts of the European Commission 2021 

Gross carrying amount at 31.12.2020 

Additions 

Disposals 

Transfer between asset categories 

Other changes 

Gross carrying amount at 31.12.2021 

Accumulated depreciation at 31.12.2020 

Depreciation charge for the year 

Depreciation written back 

Disposals 

Transfer between asset categories 

Land and 
buildings 

Space 
assets 

Plant and 
equipment 

Furniture 
and vehicles  

Computer 
hardware 

Other  Finance leases  

1 471 

 31 

 (10) 

 1 

– 

1 492 

 (945) 

 (38) 

– 

 10 

– 

5 670 

 269 

– 

1 791 

– 

7 730 

(2 625) 

 (625) 

– 

– 

– 

 264 

 18 

 (6) 

 0 

– 

 276 

 (243) 

 (14) 

– 

 6 

– 

 66 

 2 

 (4) 

– 

– 

 64 

 (59) 

 (3) 

– 

 4 

– 

 227 

 18 

 (35) 

 0 

– 

 210 

 (197) 

 (18) 

– 

 34 

 (0) 

 153 

 4 

 (5) 

 1 

– 

 153 

 (133) 

 (8) 

– 

 5 

– 

1 548 

 5 

 (7) 

 (0) 

– 

1 546 

 (899) 

 (53) 

– 

 7 

 0 

Accumulated depreciation at 31.12.2021 

 (973) 

(3 250) 

 (251) 

 (57) 

 (181) 

 (136) 

 (945) 

Assets 
under 
construction 
4 201 

1 405 

– 

(1 793) 

– 

3 814 

– 

– 

– 

– 

– 

– 

EUR million 

Total 

13 600 

1 754 

 (67) 

– 

– 

15 286 

(5 101) 

 (758) 

– 

 66 

– 

(5 792) 

NET CARRYING AMOUNT AT 31.12.2021 

NET CARRYING AMOUNT AT 31.12.2020 

 519 

 526 

4 480 

3 045 

 26 

 20 

 7 

 8 

 29 

 29 

 18 

 20 

 601 

 649 

3 814 

4 201 

9 493 

8 499 

30 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 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. At 31 December 2021, the EU holds 30% 
of the ownership interest in EIF (2020: 29.7 %). 

Participation at 31.12.2020 
Contributions 
Dividends received 
Share of net result 
Share in the net assets 
Participation at 31.12.2021 

EIF summarised financial information: 

Assets 
Liabilities 
Revenue 
Expenses 
Surplus/(deficit) 

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

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 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 

31 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

2.4.  FINANCIAL ASSETS 

Note 

31.12.2021 

EUR million 
31.12.2020 

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

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

2.4.1 
2.4.2 

2.4.1 
2.4.2 

160 200 
20 437 
180 637 

3 349 
3 163 
6 512 

82 846 
15 099 
97 945 

10 421 
3 169 
13 591 

Total 

187 149 

111 536 

* The 2020 figures include EUR 14 906 million classified as non-current AFS (Available for sale) financial assets and EUR 3 163 million 

classified as current AFS financial assets in the 2020 EC 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 

2.4.1.1.  Loans for RRF (NGEU) and financial assistance  

31.12.2021 
163 392 
 157 
163 549 
160 200 
3 349 

EUR million 
31.12.2020 
93 193 
 75 
93 268 
82 846 
10 421 

RRF  
(NGEU) 

SURE 

EFSM 

BOP 

MFA  Euratom 

Total 

EUR million 

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 

–  39 503 
 420 
– 
17 970  50 137 
– 
 507 
– 

47 396 
 (114) 
9 750 
(9 750) 
 (144) 
– 
17 978  90 567  47 138 
43 969 
17 970  90 502 
3 169 
 65 

– 
 8 
– 

 8 

 201 
 (1) 
– 
– 
0 
– 
 201 
 200 
 1 

5 813 
 (27) 
1 665 
 (14) 
 (24) 
 (243) 
7 170 
7 132 
 38 

93 193 
 279 
 276 
 (1) 
79 622 
 100 
(9 793) 
 (29) 
 347 
– 
 (11) 
 (254) 
 338  163 392 
160 087 
 314 
3 305 
 24 

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

RRF (NGEU) 
SURE 
EFSM 
BOP 
MFA 
Euratom 

The 2020 figures refer to nominal interest rates. 

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% 

32 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

2.4.2. 

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

31.12.2021 
22 773 
 828 
23 600 
20 437 
3 163 
* The 2020 figure relates to amounts previously classified as AFS financial assets in the 2020 EC Annual Accounts. 

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

Note 
2.4.2.1 
2.4.2.2 

EUR million 
31.12.2020 
18 069 
 199 
18 268 
15 099 
3 169 

2.4.2.1.  Financial assets at FVSD non-derivatives (in 2020 classified as AFS financial assets) 

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 
17 875 
2 513 
2 384 
22 773 
19 611 
3 161 

EUR million 
31.12.2020 
13 344 
3 038 
1 686 
18 069 
14 906 
3 163 

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

Financial assets at FVSD non-derivatives by programme 

Innovation Fund 
BUFI investments 
European Bank for Reconstruction and Development 

Budgetary Guarantee Funds: 
Common Provisioning Fund 
EFSI Guarantee Fund 
Guarantee Fund for external actions 
EFSD Guarantee Fund 

Financial instruments supported by the EU budget: 
Horizon 2020 
Connecting Europe Facility 
EU SME Equity Facilities 
European Fund for South East Europe 
Green for Growth Fund 
Energy Efficiency Finance Facility 
Other 

Total 
Non-current 
Current 

31.12.2021 
4 195 
1 257 
 188 
5 640 

EUR million 
31.12.2020 
– 
1 598 
 188 
1 786 

11 272 
– 
– 
– 
11 272 

3 342 
 762 
 684 
 213 
 146 
 107 
 606 
5 861 
22 773 
19 611 
3 161 

– 
7 526 
2 794 
 692 
11 012 

3 097 
 764 
 533 
 163 
 143 
 104 
 467 
5 271 
18 069 
14 906 
3 163 

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

33 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

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 
17 886 
2 698 

EUR million 
31.12.2020 
13 864 
2 706 

2 190 
22 773 

1 498 
18 069 

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 

2.4.2.2.  Financial assets and liabilities at FVSD derivatives 

Financial assets and liabilities at FVSD derivatives by type 

EUR million 

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

Type of derivative 

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

31.12.2021 

31.12.2020 

EUR million 

Notional 
amount  

 646 
4 148 
 28 
4 822 

Fair 
Value 
Asset 
 2 
 826 
– 
 828 
 826 
 2 

Fair 
Value 
Liability 
– 
 (1) 
 (4) 
 (5) 
 (5) 
– 

Notional 
amount  

 417 
3 412 
 14 
3 843 

Fair 
Value 
Asset 
 6 
 193 
– 
 199 
 193 
 6 

Fair 
Value 
Liability 
– 
 (1) 
 (4) 
 (4) 
 (4) 
 (0) 

Derivative  contracts  for  which  the  fair  value  is  negative  at  year  end  are  classified  as  financial  liabilities 
(see note 2.11). 

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. 

34 

 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

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 

35 

 
 
 
Annual accounts of the European Commission 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 

2.5.1. 

Pre-financing 

Note 

31.12.2021 

EUR million 
31.12.2020 

2.5.1 
2.5.2 

2.5.1 
2.5.2 

57 637 
2 901 
 126 
60 665 

29 446 
4 229 
33 675 
94 340 

30 417 
3 825 
 119 
34 361 

25 765 
3 327 
29 092 
63 453 

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 

– 

3 193 

23 531 
9 085 
4 836 

(4 571) 
(1 823) 
(2 263) 

18 960 
7 263 
2 572 

23 074 
8 222 
4 192 

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

19 229 
6 874 
2 672 

46 852 
34 879 
23 934 
1 140 

(12 303) 
(4 065) 
(15 031) 
 (847) 

34 549 
30 814 
8 903 
 293 

17 368 
– 
18 567 
1 121 

(10 940) 
– 
(10 931) 
 (843) 

5 980 

(4 150) 

1 830 

4 770 

(3 659) 

1 874 

(1 261) 

 614 

1 515 

(1 043) 

9 545 

(5 955) 

3 590 

9 068 

(6 020) 

13 001 
142 950 
57 637 
85 313 

(7 455) 
(55 867) 
– 
(55 867) 

5 546 

11 675 
87 084  102 764 
30 417 
57 637 
72 347 
29 446 

(6 433) 
(46 583) 
– 
(46 583) 

6 428 
– 
7 636 
 278 

1 110 

 471 

3 048 

5 242 
56 181 
30 417 
25 765 

2.5.2.  Other advances to Member States 

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

36 

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 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 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 

35 108 
5 696 
40 804 

29 426 
2 129 
31 555 
72 359 

44 279 
1 649 
45 928 

26 779 
1 490 
28 269 
74 197 

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 

2 491 
30 839 
1 556 
 222 
35 108 

5 625 
10 913 
11 698 
 826 
 363 
29 426 
64 534 

2 231 
40 629 
1 261 
 158 
44 279 

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

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

EUR million 
  31.12.2021  31.12.2020 
5 297 
1 460 
2 188 
 (892) 
– 
8 053 
1 378 

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

 668 

 (843) 
1 350 
 26 
 12 
 46 
8 118 
2 491 
5 625 

 720 

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

37 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

2.6.1.2.  UK Withdrawal agreement 

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 

April 2021 report 
(due and paid 
from June to 
September 2021) 

September 2021 report: 
(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 

Article 140 
Article 142 
Article 136 
Article 147 

Article 141 
Article 143 
Article 144 
Article 145 
Article 146 

Total 

Article 140 – Outstanding Commitments 

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

EUR million 

Total 

6 750 
11 
247 
21 
7 029 

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

EUR million 

34 966 
208  
35 174 
(58)  

(82)  

(6 750) 
337 

28 620 

17 064 
11 556 

38 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

Article 142 – Outstanding 2020 liabilities 

Outstanding 2020 liabilities under Article 142 (6) 

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 

31.12.2021 

EUR million 
31.12.2020 

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

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 

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 

EUR million 

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

Article 136 – Provisions applicable in relation to own resources 

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 

39 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

2.6.1.3.  Recoverables from competition fines 

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

2.6.1.4.  Accrued income and deferred charges 

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

2.6.2.  Receivables from exchange transactions 

Non-current 
Financial guarantee receivable 
Late payment interest 
Other receivables 

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

Total 

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 

31.12.2021 
2 301 
 81 
2 382 
1 556 
 826 

EUR million 
31.12.2020 
1 754 
 79 
1 833 
1 261 
 572 

31.12.2021 

EUR million 
31.12.2020 

2 630 
3 052 
 14 
5 696 

 485 
 232 
 (167) 
 110 
1 127 
 342 
2 129 
7 825 

– 
1 641 
 8 
1 649 

– 
 243 
 (181) 
 202 
1 085 
 141 
1 490 
3 139 

Out  of  the  total  amount  of  EUR 3  115 million  of  the  Financial  Guarantee  Contract  receivable  as  at 
31 December 2021,  EUR 3  113 million  are  classified  as  financial  assets  measured  at  fair  value  through 
surplus or deficit (Fair value level 3). 

40 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Annual accounts of the European Commission 2021 

2.7.  INVENTORIES 

Scientific materials 
Other 
Total 

2.8.  CASH AND CASH EQUIVALENTS 

Accounts with Treasuries and Central Banks 
Current accounts 
Imprest accounts 
Transfers (cash in transit) 
Bank accounts for budget implementation 
NGEU 
Financial instruments 
Fines 
Trust funds 

Total 

31.12.2021 
 58 
 20 
 79 

EUR million 
31.12.2020 
 59 
 15 
 74 

31.12.2021 
20 121 
 453 
 8 
– 
20 582 
18 027 
2 838 
1 953 
 65 
43 464 

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

15 380 

41 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

LIABILITIES 

2.9.  PENSION AND OTHER EMPLOYEE BENEFITS 

Net employee benefit scheme liability 

Defined Benefit Obligation 
Plan assets 
Net liability 

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

Other 
retirement 
benefit 
schemes 
1 907 
N/A 
1 907 

Joint 
Sickness 
Insurance 
Scheme 
10 647 
 (386) 
10 261 

31.12.2021 
Total 

EUR million 
31.12.2020 
Total 

122 234 
 (386) 
121 848 

115 762 
 (354) 
115 408 

Actuarial assumptions - employee benefits 

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

2021 

2020 

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 

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 

Movement in present value of employee benefits defined benefit obligation 

Present value as at 31.12.2020 
Recognised in statement of financial performance 
Current service cost 
Interest expense 
Recognised in net assets 
Remeasurements in employee benefits liabilities 
     Actuarial (gains)/losses from experience 
     Actuarial (gains)/losses from demographic assumptions 
     Actuarial (gains)/losses from financial assumptions 
Other 
Benefits paid 
Present value as at 31.12.2021 

Pension 
Scheme of 
European 
Officials  
100 741 

Other 
retirement 
benefit 
Schemes 
1 732 

EUR million 
Total 

Joint 
Sickness 
Insurance 
Scheme 
13 289  115 762 

4 095 
 401 

 108 
 5 

 363 
 66 

4 565 
 473 

1 457 
– 
4 787 

 27 
– 
 73 

 (209) 
– 
(2 774) 

1 275 
– 
2 085 

(1 801) 
109 679 

 (38) 
1 907 

 (88) 

(1 926) 
10 647  122 234 

42 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

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

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

Pension Scheme of European Officials sensitivity 

EUR million 

 354 
 32 
 386 

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

Defined benefit obligation 

2021 

2020 

Increase 
0.1% 
(2 464) 

Decrease 
0.1% 
2 544 

Increase 
0.1% 
(2 247) 

EUR million 

Decrease 
0.1% 
2 319 

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

Defined benefit obligation 

Increase 0.1% 
2 414 

Decrease 0.1% 
(2 345) 

Increase 0.1% 
2 206 

Decrease 0.1% 
(2 143) 

2021 

EUR million 

2020 

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

Defined benefit obligation 

2021 

One year 
increase 
(1 155) 

One year 
decrease 
1 527 

2020 

One year 
increase 
(1 104) 

EUR million 

One year 
decrease 
1 417 

Joint Sickness Insurance Scheme sensitivity 

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

2021 
Increase 0.1%  Decrease 0.1% 

2020 
Increase 0.1%  Decrease 0.1% 

EUR million 

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

 13 

 (12) 

 15 

 (14) 

 317 

 (307) 

 397 

 (385) 

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

Defined benefit obligation 

2021 
Increase 0.1%  Decrease 0.1% 
 274 

 (265) 

2020 
Increase 0.1%  Decrease 0.1% 
 361 

 (348) 

EUR million 

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

Defined benefit obligation 

Increase 0.1%  Decrease 0.1% 
 41 

 (42) 

Increase 0.1%  Decrease 0.1% 
 37 

 (38) 

2021 

EUR million 

2020 

43 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

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

2021 

One year 
increase 
 (317) 

One year 
decrease 
 334 

2020 

One year 
increase 
 (401) 

EUR million 

One year 
decrease 
 421 

Defined benefit obligation 

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 

EUR million 
Amount at 
31.12.2021 

Legal cases: 
  Agriculture 
  Other 
Nuclear site 
dismantling 
Financial 
Other 

Total 
Non-current 

 170 
 17 

2 426 

– 
– 

– 

 112 

2 523  (2 522) 
– 
5 248  (2 522) 
3 730  (1 165) 

 210 
 4 

– 

 1 
 220 
 435 
 212 

 (25) 
 (12) 

 (1) 
 (0) 

– 

 (33) 

– 
 (26) 
 (63) 
 (25) 

 (1) 
 (19) 
 (54) 
 (1) 

– 
– 

– 

– 
– 
– 
 (35) 

– 
– 

 46 

– 
– 
 46 
 46 

 354 
 9 

2 440 

 1 
 287 
3 091 
2 763 

Current 

1 518  (1 357) 

 224 

 (38) 

 (53) 

 35 

– 

 328 

44 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

2.11.  FINANCIAL LIABILITIES 

Note 

31.12.2021 

EUR million 
31.12.2020 

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 

2.11.1 
2.4.2.2 
2.11.2 

2.11.1 
2.4.2.2 
2.11.2 

Total 

2.11.1.  Financial liabilities at amortised cost  

214 230 
 5 
 146 
214 380 

23 442 
– 
7 648 
31 090 
245 470 

83 730 
 4 
– 
83 734 

10 518 
 0 
 90 
10 608 
94 342 

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

2.11.1.1.  Borrowings for NGEU and financial assistance 

Note 
2.11.1.1 
2.11.1.2 

EUR million 
31.12.2021  31.12.2020 
93 192 
1 055 
94 248 
83 730 
10 518 

236 720 
 951 
237 672 
214 230 
23 442 

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

NGEU 
SURE 
EFSM 
BOP 
MFA 
Euratom 

The 2020 figures refer to nominal interest rates. 

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% 

45 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

2.11.1.2.  Other financial liabilities 

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

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

Total 

Finance lease liabilities 

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

2.11.2.  Financial guarantee liabilities 

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 

EUR million 
31.12.2020 

 660 
 156 
 31 
 847 

 75 
 28 
– 
 2 
 105 
 951 

 729 
 184 
 35 
 948 

 72 
 26 
 8 
 2 
 108 
1 055 

Future amounts to be paid 

EUR million 

< 1 year  1 - 5 years  > 5 years  Total Liability 
 721 
 13 
 735 
 210 

 316 
 8 
 324 
 115 

 336 
– 
 336 
 54 

 69 
 5 
 75 
 40 

 115 

 439 

 391 

 945 

 116 

 443 

 495 

1 054 

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 

46 

 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 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 costs claims & 
invoices received 

EAGF 

Sundry Payables 

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 

 (0) 

6 484 

3 311 

19 118 

 677 

1 563 

(1 878) 

 (596) 

– 

 (58) 

 (320) 

4 606 

2 715 

19 118 

 619 

1 244 

12 651 

3 479 

– 

 796 

1 485 

(2 698) 

 (370) 

– 

 (90) 

 (182) 

 17 

9 954 

3 109 

– 

 706 

1 302 

31 183 

(2 851) 

28 331 

18 428 

(3 341) 

15 088 

15 650 

3 663 

50 496 

N/A 

N/A 

15 650 

16 160 

3 663 

1 859 

N/A 

N/A 

(2 851) 

47 644 

36 447 

(3 341) 

16 160 

1 859 

33 107 

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

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 
76 962 
 1 
 94 
77 057 

EUR million 
31.12.2020 
63 667 
 1 
 39 
63 708 

31.12.2021 
8 263 
25 241 
19 245 
10 710 
3 499 
10 003 
76 962 

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

47 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

NET ASSETS 

2.14.  RESERVES 

Fair value reserve 
Guarantee Fund reserve 
Other reserves 
Total 

31.12.2021 
– 
– 
 51 
 51 

EUR million 
31.12.2020 
 470 
3 043 
 (12) 
3 501 

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 

41 329 
(1 693) 
39 636 
1 769 
– 
3 241 

– 

42 075 

86 721 

48 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

3.  NOTES TO THE STATEMENT OF FINANCIAL 

PERFORMANCE  

REVENUE 

REVENUE FROM NON-EXCHANGE TRANSACTIONS: 
TRANSFERS  

3.1.  RECOVERY OF EXPENSES 

Shared management 
Direct management 
Indirect management 
Total 

2021 
1 682 
 61 
 19 
1 762 

EUR million 
2020 
1 281 
 53 
 21 
1 355 

3.2.  OTHER REVENUE FROM NON-EXCHANGE 

TRANSACTIONS 

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

2021 
2 187 
 973 
 199 
1 036 
 353 
1 245 
 63 
– 
(3 660) 
 356 
2 753 

EUR million 
2020 
2 080 
1 552 
1 075 
 983 
 317 
 214 
 15 
 1 
(3 411) 
 437 
3 263 

49 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

REVENUE FROM EXCHANGE TRANSACTIONS 

3.3.  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 

2021 

1 529 
1 160 
 220 
 9 
 2 
 987 

 324 
 815 
– 
 30 
 13 
5 090 

EUR million 
2020 

1 129 
1 167 
– 
 60 
 674 
 258 

- 
 70 
 41 
 22 
 2 
3 424 

3.4.  OTHER REVENUE FROM EXCHANGE TRANSACTIONS 

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

EXPENSES 

3.5.  SHARED MANAGEMENT  

2021 
 284 
 169 
 1 
 18 
 3 
 252 
 727 

EUR million 
2020 
 356 
 38 
 34 
 17 
 2 
 240 
 687 

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 

50 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

3.6.  DIRECT MANAGEMENT 

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

3.7.  INDIRECT MANAGEMENT 

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

3.8.  STAFF AND PENSION COSTS 

Staff costs 
Pension costs 
Total 

3.9.  FINANCE COSTS 

Interest expenses: 
     Borrowings 
     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 

51 

2021 
48 289 
42 940 
14 233 
 503 

63 025 

2021 
4 211 
 887 
3 624 
3 225 

11 947 

EUR million 
2020 
11 455 
– 
10 029 
 636 

22 120 

EUR million 
2020 
4 497 
 559 
3 620 
3 257 

11 933 

2021 
3 556 
5 038 
8 593 

EUR million 
2020 
3 524 
4 960 
8 485 

2021 

1 209 
 146 
 44 
 96 
– 
 233 

 947 
1 244 
– 

 195 
 40 
– 
 4 
4 158 

EUR million 
2020 

1 160 
– 
 47 
 22 
 672 
– 

 70 
 110 
 41 

– 
 21 
 5 
 11 
2 160 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

3.10.  OTHER EXPENSES 

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

2021 
 480 
 948 
 808 
 156 
 543 
 227 
 162 
 15 
 397 
3 736 

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

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 
 390 
 78 
 469 

EUR million 
2020 
 391 
 85 
 476 

52 

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

Annual accounts of the European Commission 2021 

GNI resources 
Traditional own resources 
VAT 
New own resources 
Fines 
Recovery of expenses 
UK Withdrawal Agreement 
Other 
Non-Exchange Revenue 
Financial revenue 
Other 
Exchange Revenue 
Total revenue 
Expenses implemented by : 
  Member States: 
     EAGF 
     EAFRD & other 
     ERDF & CF 
     ESF 
     Other 
  EC, executive agencies and 
  trust funds 
  Other EU agencies and bodies 
  Third countries and int. 
  organisations 
  Other entities 
Staff and pension costs 
Finance costs 
Other expenses 
Total expenses 
Economic result of the year 

Single market, 
Innovation 
and Digital 
– 
– 
– 
– 
– 
 24 
– 
 384 
 408 
1 913 
 257 
2 170 
2 578 

Cohesion 
and Values 

– 
– 
– 
– 
– 
 809 
– 
 132 
 941 
 45 
 (16) 
 29 
 970 

Natural 
Resources and 
Environment 
– 
– 
– 
– 
– 
 893 
– 
 46 
 939 
 0 
 (18) 
 (17) 
 922 

Migration 
and Border 
Management 
– 
– 
– 
– 
– 
 8 
– 
– 
 8 
– 
 0 
 0 
 8 

Resilience, 
Security and 
Defence 
– 
– 
– 
– 
– 
 0 
– 
– 
 0 
 0 
 (5) 
 (5) 
 (5) 

Neighbour- 
hood and 
the World 
– 
– 
– 
– 
– 
 27 
– 
 41 
 68 
 217 
 8 
 225 
 293 

European 
Public 
Administration 
– 
– 
– 
– 
– 
 0 
– 
(2 717) 
(2 717) 
 0 
 227 
 227 
(2 490) 

Not assigned 
to MFF 
headings* 
115 955 
20 590 
18 340 
5 831 
1 990 
 2 
1 122 
4 866 
168 695 
2 916 
 273 
3 189 
171 884 

EUR million 

Total 

115 955 
20 590 
18 340 
5 831 
1 990 
1 762 
1 122 
2 753 
168 342 
5 090 
 727 
5 817 
174 159 

– 
– 
– 
– 
– 

– 
– 
(46 932) 
(16 727) 
 24 

(12 207) 
(2 374) 

(45 753) 
 (703) 

 (243) 
 573 
 (453) 
 (771) 
(1 609) 

 37 
(3 301) 
 (9) 
 (43) 
 (134) 
(17 083)  (113 541) 
(14 505)  (112 571) 

(40 829) 
(15 451) 
– 
– 
 (710) 

 (662) 
 (77) 

 113 
 73 
 (1) 
 (24) 
 (251) 
(57 820) 
(56 899) 

– 
– 
– 
– 
 (837) 

 (289) 
 (680) 

 (171) 
 (7) 
 (0) 
 (0) 
 (5) 
(1 990) 
(1 982) 

– 
– 
– 
– 
 (101) 

 (244) 
 (359) 

 (213) 
 (103) 
 (1) 
 (0) 
 (52) 
(1 071) 
(1 076) 

– 
– 
– 
– 
 (233) 

(3 954) 
 (15) 

(4 025) 
 (460) 
 (136) 
 (445) 
 (240) 
(9 507) 
(9 215) 

– 
– 
– 
– 
– 

– 
– 
– 
– 
(2 979) 

(40 829) 
(15 451) 
(46 932) 
(16 727) 
(4 835) 

 (25) 
– 

 109 
 (3) 

(63 025) 
(4 211) 

 (3) 
 (0) 
(7 994) 
 (57) 
(1 253) 
(9 332) 
(11 822) 

 (7) 
– 
– 
(2 818) 
 (191) 

(4 512) 
(3 225) 
(8 593) 
(4 158) 
(3 736) 
(5 889)  (216 234) 
(42 075) 
165 995 

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

53 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

4. 

CONTINGENT LIABILITIES AND ASSETS 

4.1.  GUARANTEES GIVEN BY 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 

Signed  Disbursed 
20 835 
33 026 
20 358 
24 730 
 535 
 611 
 200 
 200 
41 928 
60 442  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 

Signed  Disbursed 
20 050 
32 530 
18 590 
23 831 
 34 
 438 
38 673 
62 285  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).  

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 

54 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

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

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 

4.2.  Contingent liabilities relating to legal cases 

Fines 
Agriculture 
Cohesion 
Other 
Total 

4.3.  Contingent assets 

Guarantees received: 
     Performance guarantees 
     Other guarantees 
Other contingent assets 
Total 

31.12.2021 
2 111 
 79 
 210 
1 146 
3 546 

EUR million 
31.12.2020 
2 985 
 66 
 341 
2 164 
5 556 

31.12.2021 

EUR million 
31.12.2020 

 68 
 2 
 98 
 169 

 74 
 2 
 58 
 133 

55 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

5.  BUDGETARY AND LEGAL COMMITMENTS 

Outstanding budgetary commitments not yet expensed 
Significant legal commitments 
Total 

Note 
5.1 
5.2 

EUR million 
31.12.2021  31.12.2020 
248 788 
5 620 
254 408 

261 062 
126 936 
387 998 

5.1.  OUTSTANDING BUDGETARY COMMITMENTS NOT YET 

EXPENSED 

Outstanding budgetary commitments not yet expensed 

5.2.  SIGNIFICANT LEGAL COMMITMENTS 

31.12.2021 
261 062 

EUR million 
31.12.2020 
248 788 

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

Note 

5.2.1 

EUR million 
31.12.2021  31.12.2020 
– 
– 
– 
 172 
– 
– 
– 
4 140 
 894 
 414 
5 620 

99 530 
17 662 
4 189 
 412 
 382 
 445 
3 072 
– 
 805 
 438 
126 936 

EAFRD is the only structural programme on shared management for which budgetary commitments are still to be implemented. 

5.2.1.  Operating lease commitments 

Buildings 
IT materials and other equipment 
Total 

Future amounts to be paid 
< 1 year  1- 5 years  > 5 years 
 366 
– 
 366 

 311 
 4 
 315 

 120 
 4 
 124 

EUR million 

Total 
 797 
 8 
 805 

56 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

6. 

FINANCIAL RISK MANAGEMENT 

6.1.  CURRENCY RISK 

Currency risk at 31 December 2021 
Exposure of the EC 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 

USD 

GBP 

31.12.2021 
SEK 

PLN 

Other 

EUR 

Total 

EUR million 

 63 

– 

– 

– 

 7 

 87 

 157 

 934 
 (646) 
 108 
 74 
 532 

 51 
– 
 98 
 20 

– 
– 
 108 
1 014 
 170  1 121 

 23 
– 
 4 
 591 
 617 

21 690 
 75 
1 474 
– 
7 318 
 72 
1 516 
40 250 
1 669  70 819 

22 773 
 828 
7 707 
43 464 
74 928 

Financial liabilities 
Financial guarantee liability 
Financial liabilities at FVSD 

(1 047) 
 (1) 
(1 048) 
Total 
 (516) 
* Excluding back-to-back loans for financial assistance. 
** Excluding deferred charges. 

 (62) 
 (0) 
– 
– 
 (0) 
 (62) 
 170  1 059 

 (19) 
– 
 (19) 
 598 

 (248) 
 (4) 

(6 418) 
– 
 (251)  (6 418) 
1 418  64 401 

(7 794) 
 (5) 
(7 798) 
67 130 

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

Economic result 

USD 
 47 

2021 

GBP 
 (15) 

EUR million 

PLN 
 (96) 

SEK 
 (54) 

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

Economic result 

2021 

GBP 
 19 

EUR million 

PLN 
 118 

SEK 
 66 

USD 
 (57) 

57 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

Currency risk at 31 December 2020 
Exposure of the EC to currency risk at year-end – net position 

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

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

Total 

USD 

GBP 

DKK 

31.12.2020 
SEK 

EUR  Other 

Total 

EUR million 

 593 

 42 

 15 

 14 

17 386 

 20 

18 069 

 (417) 

– 

– 

– 

 616 

– 

 199 

 21 
 1 
 106 
 303 

– 
1 201 
 61 
1 303 

– 
 114 
 153 
 282 

 46 
– 
72 050 
 176 
 367 
13 146 
 556  103 243 

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

– 

– 

– 

– 

 (1) 

 (4) 

 (4) 

 0 
 0 
 303 

 (0) 
 (0) 
1 303 

 (0) 
 (0) 
 281 

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

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

2 225 

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

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

Economic result 
Net assets 

2020 

GBP 
 (115) 
 (4) 

EUR million 

DKK 
 (24) 
 (1) 

SEK 
 (49) 
 (1) 

USD 
 (10) 
 (17) 

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

Economic result 
Net assets 

6.2.  INTEREST RATE RISK 

2020 

GBP 
 140 
 5 

EUR million 

DKK 
 30 
 2 

SEK 
 60 
 2 

USD 
 13 
 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 

 (573) 
 608 
 (428) 
 458 

58 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

6.3.  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. 

Loans: credit quality  

EUR million 

31.12.2021 

163 549 

43 464 
7 707 

17 875 
 828 

55 267 

288 689 

EUR million 

31.12.2021 

Stage 1  

Stage 2 

Stage 3 

POCI 

Total  

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  

10 361 
58 991 
79 672 

8 819 

157 842 
 (10) 
157 832 

– 
– 
– 

5 965 

5 965 
 (299) 
5 665 

– 
– 
– 

 29 

 29 
 (26) 
 3 

Loans: Movement in impairment loss allowance  

– 
– 
– 

 48 

 48 
– 
 48 

10 361 
58 991 
79 672 

14 860 

163 884 
 (336) 
163 549 

EUR million 

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 

Stage 1  

Stage 2 

Stage 3 

POCI 

Total  

 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 

59 

 
 
 
 
 
 
   
 
 
 
   
 
 
 
 
   
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

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  

Receivables: credit quality  

Gross carrying amount 
Minus loss allowance 
Net carrying amount  

31.12.2021 

Not due  Past due 
0-30 
days 
 4 
 (1) 
 3 

2 728 
 (2) 
2 726 

Past due 
31-90 
days 
 7 
 (4) 
 4 

Past due 
91 days - 1 
year 
 575 
 (17) 
 558 

Past due 
> 1 year 

1 447 
 (143) 
1 304 

EUR million 

31.12.2021 

39 666 
3 345 
 285 
 167 
43 464 
- 
43 464 

EUR million 

Total 

4 762 
 (168) 
4 594 

The  part  of  the  financial  guarantee  contracts  receivable  leg,  measured  at  FVSD,  is  excluded  from  this 
table (see note 2.6.2) 

Financial guarantee contracts: credit quality  

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 

60 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

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

31.12.2020 
Neither past 
due nor 
impaired 

93 268 
59 415 

 199 

Total 

93 268 
74 197 

 199 

EUR million 

Past due but not impaired 

< 1 year 

1-5 years  > 5 years 

– 
 499 

– 

– 
14 028 

– 

– 
 256 

– 

 256 

167 664 

152 881 

 499 

14 028 

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 

31.12.2020 

Available 
for sale* 

Financial 
assets at 
FVSD** 

Loans   Receivables 
and 
recoverables 

EUR million 

Cash 

Total 

8 111 
3 227 
1 743 
 262 
13 344 

 199 
– 
– 
– 
 199 

2 000 
35 040 
48 139 
7 964 
93 142 

53 303 
1 525 
1 880 
 140 
56 848 

12 845 
 780 
1 594 
 158 
15 377 

76 457 
40 572 
53 357 
8 525 
178 911 

– 

– 

– 

– 

 125 

2 563 

– 

 4 

 3 

– 

2 691 

 4 

– 
13 344 

– 
 199 

 125 
93 268 

2 567 
59 415 

 3 
15 380 

2 695 
181 606 

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

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

Total 

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

6.4.  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) 
(47 644) 
 (153) 
(71 567) 

1-5 years 
(45 030) 
– 
 (564) 
(45 594) 

> 5 years 
(180 660) 
– 
 (484) 
(181 144) 

Total 
(249 459) 
(47 644) 
(1 201) 
(298 305) 

EUR million 

Carrying 
amount 
(236 720) 
(47 644) 
 (951) 
(285 316) 

61 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

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 

 (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 

< 1 year  1-5 years  > 5 years 
 (1) 
(55 381) 
 (1) 
(55 381) 

 (878) 
 (878) 

Total 
(56 259) 
(56 259) 

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) 
(33 107) 
 (90) 
 (108) 
(43 714) 

1-5 years 
(20 230) 
– 
– 
 (436) 
(20 665) 

> 5 years 
(62 553) 
– 
– 
 (512) 
(63 065) 

Financial instruments at fair value through surplus or deficit 

EUR million 

Carrying 
Amount 
(7 794) 
(7 794) 

EUR million 

Total 
(93 192) 
(33 107) 
 (90) 
(1 055) 
(127 444) 

31.12.2020 

  < 1 year  1-5 years 

 (417) 
 423 
 5 

 (4) 
– 
 (4) 

EUR million 

> 5 
years 
 (1) 
– 
 (1) 

Total 

 (421) 
 423 
 1 

Derivative pay leg 
Derivative receive leg 
Net cash flows at 31.12.2020 

6.5.  OTHER PRICE RISK 

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) 

62 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

7.  RELATED PARTY DISCLOSURES 

The related parties of the entity are the EU consolidated entities and the key management personnel of 
these entities. Transactions between these entities take place as part of the normal operations of the EU 
and  as  this  is  the  case,  no  specific  disclosure  requirements  are  necessary  for  these  transactions  in 
accordance with the EU accounting rules. 

Details on key management entitlements are provided in note 7 of the EU consolidated annual accounts. 

63 

 
 
Annual accounts of the European Commission 2021 

8. 

EVENTS AFTER THE BALANCE SHEET DATE 

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

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  amounts  in 
these  financial  statements  at  31  December  2021.  As  indicated  in  notes  2.4  &  2.11,  the  EU  has  loans 
outstanding (funded by borrowings) 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,  at  31  December  2021  the  EIB  has  granted  loans  worth  EUR  2.1  billion  to  Ukraine 
(outstanding  principal  disbursed)  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. 

64 

 
 
 
Annual accounts of the European Commission 2021 

EUROPEAN COMMISSION 
FINANCIAL YEAR 2021 

BUDGETARY IMPLEMENTATION REPORTS  

It should be noted that due to the rounding of figures into millions of euros, some financial data in the 
tables below may appear not to add-up.

65 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

CONTENTS 

EU BUDGET RESULT ................................................................................. 67 

STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS ............... 67 

2.1. 

2.2. 

2.3. 

BUDGET REVENUE ............................................................................. 67 

BUDGET EXPENDITURE: COMMITMENTS BY MULTIANNUAL FINANCIAL 
FRAMEWORK (MFF) HEADING .............................................................. 68 

BUDGET EXPENDITURE: PAYMENTS BY MULTIANNUAL FINANCIAL 
FRAMEWORK (MFF) HEADING .............................................................. 68 

IMPLEMENTATION OF EC BUDGET REVENUE ............................................... 69 

IMPLEMENTATION OF EC BUDGET EXPENDITURE ........................................ 70 

4.1.  MFF: BREAKDOWN & CHANGES IN COMMITMENT & PAYMENT 

APPROPRIATIONS .............................................................................. 70 

4.2.  MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS ................... 71 

4.3.  MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ......................... 72 

4.4.  MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) .................... 73 

4.5.  MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN ....................... 74 

4.6. 

4.7. 

4.8. 

4.9. 

POLICY AREA: BREAKDOWN AND CHANGES IN COMMITMENT AND 
PAYMENT APPROPRIATIONS ................................................................ 75 

POLICY AREA: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS ...... 76 

POLICY AREA: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ............ 77 

POLICY AREA: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) ....... 78 

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

RECONCILIATION OF ECONOMIC RESULT WITH BUDGET RESULT .................. 80 

66 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

 EU BUDGET RESULT 

Revenue for the financial year 

Payments against current year appropriations 

Payment appropriations carried over to year N+1 

Cancellation of unused appropriations carried over from year N-1 

Evolution of assigned revenue (B)-(A) 

     Unused appropriations at the end of current year (A) 

     Unused appropriations at the end of previous year (B) 

Exchange rate differences for the year 

Budget result 

EUR million 

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 

  STATEMENT OF COMPARISON OF BUDGET AND 

ACTUAL AMOUNTS 

2.1.  BUDGET REVENUE 

Title 

Initial adopted 
budget 

Final adopted 
budget 

Entitlements 
established 

EUR million 

Revenue 

1  Own resources 

156 867 

156 993 

160 869 

158 632 

2  Surpluses, balances and adjustments 

3  Administrative revenue 

4  Financial revenue, default interest and fines 

5 

6 

Budgetary guarantees, borrowing and lending 
operations 
Revenue, contributions and refunds related to union 
policies 

1 331 

 119 

1 769 

1 331 

1 779 

1 596 

 515 

18 494 

1 772 

1 551 

1 633 

55 501 

55 501 

7 348 

7 008 

26 114 

19 827 

  Total 

165 665 

167 616 

264 354 

238 916 

67 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

2.2.  BUDGET EXPENDITURE: COMMITMENTS BY 

MULTIANNUAL FINANCIAL FRAMEWORK (MFF) 
HEADING 

MFF Heading 

Initial adopted 
budget 

Final adopted 
budget 

Total 
appropriations 
available 

EUR million 

Commitments 
made 

1  Single Market, Innovation and Digital 

2  Cohesion, Resilience and Values 

    Economic, social and territorial cohesion 

    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 

O  Outside MFF 

S 

Solidarity mechanisms within and outside the 
Union (Special instruments) 

20 817 

52 862 

48 191 

4 671 

58 569 

20 817 

53 219 

48 191 

5 029 

58 574 

34 960 

25 683 

452 326 

151 947 

106 413 

345 913 

79 377 

48 468 

103 479 

59 723 

40 368 

40 371 

41 518 

40 818 

2 279 

1 709 

16 097 

6 136 

– 

2 303 

1 706 

17 031 

6 136 

– 

1 471 

2 739 

2 368 

1 741 

1 644 

1 625 

17 474 

15 372 

6 524 

3 922 

2 759 

6 339 

 199 

1 223 

  Total 

159 939 

162 526 

601 452 

263 755 

2.3.  BUDGET EXPENDITURE: PAYMENTS BY MULTIANNUAL 

FINANCIAL FRAMEWORK (MFF) HEADING 

MFF Heading 

Initial adopted 
budget 

Final adopted 
budget 

1  Single Market, Innovation and Digital 

2  Cohesion, Resilience and Values 

    Economic, social and territorial cohesion 

    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 

O  Outside MFF 

S 

Solidarity mechanisms within and outside the 
Union (Special instruments) 

  EUR million 

Total 
appropriations 
available 

Payments 
made 

22 478 

18 532 

131 414 

126 454 

79 628 

51 787 

58 310 

75 591 

50 863 

56 831 

17 192 

66 154 

61 868 

4 286 

56 804 

16 670 

67 614 

63 855 

3 758 

56 021 

40 354 

40 303 

41 467 

40 760 

2 686 

 671 

10 811 

6 137 

– 

2 519 

 714 

11 455 

6 137 

– 

1 293 

2 574 

2 734 

 726 

2 547 

 708 

12 258 

10 935 

6 876 

3 931 

2 593 

6 269 

 61 

1 223 

  Total 

161 748 

163 704 

241 321 

223 561 

68 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 IMPLEMENTATION OF EC BUDGET REVENUE 

Annual accounts of the European Commission 2021 

Income appropriations 

Entitlements established 

Revenue 

Title 

Initial budget 
adopted 

Final budget 
adopted 

Current 
year 

Carried 
over 

Total 

On entitle- 
ments of 
current year 

On entitle- 
ments 
carried over 

EUR million 

Receipts 
as % of 
budget 

Out- 
standing 

Total 

1  Own resources 

156 867 

156 993 

158 629 

2 241 

160 869 

158 624 

2  Surpluses, balances and adjustments 

1 769 

1 772 

3  Administrative revenue 

1 331 

1 331 

1 556 

 7 

 41 

1 779 

1 596 

1 772 

1 522 

 8 

– 

 29 

158 632 

101 % 

2 237 

1 772 

100 % 

1 551 

117 % 

 7 

 46 

4 

5 

6 

Financial revenue, default interest and 
fines 
Budgetary guarantees, borrowing and 
lending operations 
Revenue, contributions and refunds 
related to union policies 

 119 

 515 

2 082 

16 412 

18 494 

1 060 

 573 

1 633 

317 % 

16 861 

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 

165 665 

167 616  244 942  19 411  264 354 

237 838 

1 078 

238 916  143 % 

25 437 

69 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  IMPLEMENTATION OF EC BUDGET EXPENDITURE  

Annual accounts of the European Commission 2021 

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

MFF Heading 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets 
& 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

Total 
appropr. 
available 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets 
& 
transfers 

Final 
adopted 
budget 

Additional 
appropriat. 

Carry-
overs 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

6=3+4+5 

7 

8 

9=7+8 

10 

11 

  EUR million 

Total 
appropr. 
available 

12=9+10 
+11 

1  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 

    Economic, social and territorial 
cohesion 
    Resilience and values 

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 

 24 

 (3) 

2 303 

1 706 

6  Neighbourhood and the World 

16 097 

 934 

17 031 

7  European Public Administration 

6 136 

 (0) 

6 136 

O  Outside MFF 

– 

– 

– 

S 

Solidarity mechanisms within and 
outside the Union (Special 
instruments) 

1 471 

1 269 

2 739 

– 

– 

– 

– 

– 

– 

48 191 

 0 

48 191 

 8 

58 215 

106 413 

61 868 

1 987 

63 855 

 13 

15 760 

79 628 

4 671 

 358 

5 029 

 1 

340 883 

345 913 

4 286 

 (527) 

3 758 

 413 

47 615 

58 574 

 475 

20 328 

79 377 

56 804 

 (783) 

56 021 

 499 

1 790 

40 371 

 475 

 672 

41 518 

40 354 

 (51) 

40 303 

 493 

 65 

 35 

2 368 

1 741 

2 686 

 (167) 

2 519 

 671 

 43 

 714 

 4 

 0 

 443 

17 474 

10 811 

 644 

11 455 

 37 

 389 

3 922 

6 524 

3 922 

6 137 

– 

 0 

– 

6 137 

 350 

– 

 20 

2 759 

1 293 

1 280 

2 574 

 20 

2 593 

51 787 

58 310 

41 467 

2 734 

 726 

12 258 

6 876 

3 931 

 672 

 210 

 12 

 766 

 389 

3 931 

– 

 0 

  Total 

159 939 

2 587  162 526 

 517  438 409  601 452  161 748 

1 956  163 704  1 453 

76 163 

241 321 

70 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.2.  MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Commission 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 
assigned 
revenue 

from final 
budget 
budget 

Total 

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 

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 

1 

2 

Single Market, Innovation 
and Digital 
Cohesion, Resilience and 
Values 
    Economic, social and 
territorial cohesion 

3 

4 

Natural Resources and 
Environment 
    of which market-related 
expenditure and direct 
payments 
Migration and Border 
Management 

    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 

2 368 

1 626 

5  Security and Defence 

1 741 

1 597 

6 

7 

Neighbourhood and the 
World 
European Public 
Administration 

O  Outside MFF 

S 

Solidarity mechanisms within 
and outside the Union 
(Special instruments) 

17 474 

15 130 

6 524 

6 115 

3 922 

– 

2 759 

1 223 

– 

– 

– 

– 

– 

– 

 19 

 28 

1 644 

69 % 

1 625 

93 % 

– 

– 

 47 

 7 

 47 

 7 

 242 

15 372 

88 % 

1 900 

 200 

2 100 

 224 

6 339 

97 % 

 199 

 199 

5 % 

– 

– 

 163 

 163 

3 723 

3 723 

 677 

 109 

 2 

 20 

– 

– 

1 223 

44 % 

1 343 

 7 

1 350 

 173 

– 

– 

– 

– 

– 

– 

  Total 

601 452  109 244 

 511  153 999  263 755 

44 % 

4 043  283 739  287 781  49 239 

 5 

 671 

49 916 

71 

 0 

 0 

 0 

 1 

 1 

– 

 11 

 677 

 109 

 2 

 22 

– 

 13 

 186 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.3.  MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS 

Annual accounts of the European Commission 2021 

3 

4 

Natural Resources and 
Environment 
    of which market-related 
expenditure and direct 
payments 
Migration and Border 
Management 

Payments made 

Appropriations carried over 
to 2022 

Appropriations lapsing 

EUR million 

MFF Heading 

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 

Single Market, Innovation and 
Digital 

1 

2 

3 

4 

5=2+ 
3+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

22 478 

16 495 

 115 

1 922 

18 532 

82 % 

 151 

3 744 

3 895 

 25 

 22 

2  Cohesion, Resilience and Values 

131 414 

67 577 

 239 

58 639 

126 454 

96 % 

 27 

4 733 

4 760 

 10 

 187 

    Economic, social and 
territorial cohesion 

79 628 

63 849 

 11 

11 731 

75 591 

95 % 

 3 

4 029 

4 032 

    Resilience and values 

51 787 

3 728 

 228 

46 908 

50 863 

98 % 

 24 

 704 

 728 

 3 

 7 

 2 

 185 

58 310 

55 312 

 492 

1 027 

56 831 

97 % 

 693 

 762 

1 455 

 17 

41 467 

39 605 

 486 

 669 

40 760 

98 % 

 687 

 2 

 689 

 11 

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 

6 876 

5 779 

 320 

 171 

6 269 

91 % 

 338 

 216 

 554 

 20 

 30 

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 

– 

– 

– 

– 

  Total 

241 321  160 032 

1 203  62 326  223 561 

93 % 

3 591  13 827  17 417 

 82 

 250 

 11 

 343 

72 

Total 

13=10+ 
11+12 

 51 

 200 

 5 

 195 

 24 

 18 

 3 

 6 

 6 

 53 

– 

– 

 5 

 3 

 0 

 3 

 0 

 0 

 0 

 0 

 0 

 2 

– 

– 

 7 

 7 

 1 

 0 

 3 

 2 

 6 

 3 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.4.  MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) 

Annual accounts of the European Commission 2021 

Commitments outstanding at the end of previous year 

Commitments of the current year 

MFF Heading 

Commit. carried 
forward from 
prev. year 

Decommitments/ 
Revaluations/ 
Cancellations 

Payments 

Commitm. 
outstandin
g at year-
end 

Commit. 
made during 
the year 

Payments 

Cancellation of 
commitm. 
which cannot 
be carried-
over 

Commitm. 
outstanding 
at year-end 

EUR million 

Total 
commitm. 
outstanding 
at end of the 
year 

1 

2 

3 

4=1+2+3 

5 

6 

7 

8=5+6+7 

9=4+8 

 (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 

    Economic, social and territorial 
cohesion 

    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 

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) 

 (76) 

 200 

40 818 

(40 685) 

 (68) 

(1 804) 

3 078 

1 644 

 (743) 

 (23) 

 (498) 

 981 

1 625 

 (209) 

6  Neighbourhood and the World 

28 785 

 (687) 

(7 821) 

20 278 

15 372 

(3 115) 

7  European Public Administration 

O  Outside MFF 

S 

Solidarity mechanisms within and 
outside the Union (Special instruments) 

 354 

 11 

 0 

 (32) 

 (322) 

 (2) 

– 

 (3) 

 (0) 

 0 

 6 

– 

6 339 

(5 948) 

 199 

 (58) 

1 223 

(1 223) 

 (1) 

 (0) 

 (0) 

 (0) 

– 

– 

 (0) 

 (0) 

 (0) 

– 

– 

95 478 

209 033 

41 305 

152 839 

54 174 

18 161 

 133 

 901 

1 415 

12 257 

 392 

 140 

– 

56 195 

43 691 

 333 

3 980 

2 397 

32 535 

 392 

 147 

– 

  Total 

302 570 

(1 855)  (109 335)  191 381 

263 755  (114 226) 

 (18) 

149 511 

340 892 

73 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.5.  MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN 

Annual accounts of the European Commission 2021 

MFF heading 

<2015 

2015 

2016 

2017 

2018 

2019 

2020 

2021 

Total 

  EUR million 

1  Single Market, Innovation and Digital 

2  Cohesion, Resilience and Values 

3  Natural Resources and Environment 

4  Migration and Border Management 

5  Security and Defence 

6  Neighbourhood and the World 

7  European Public Administration 

O  Outside MFF 

  Total 

 579 

2 546 

 497 

 404 

 328 

1 222 

 17 

 37 

 2 

 4 

1 020 

 911 

1 128 

 66 

 47 

2 025 

8 637 

1 065 

 195 

 129 

3 632 

8 014 

11 812 

21 138 

48 717 

16 907 

33 036 

51 058 

95 534 

209 033 

2 486 

7 231 

12 071 

18 161 

43 691 

 517 

 159 

 865 

 241 

1 414 

 364 

 904 

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 

0 

0 

– 

0 

 0 

– 

 (0) 

0 

 0 

 1 

 0 

 6 

 392 

 140 

 392 

 147 

4 765 

2 771 

4 357 

14 190 

27 158 

54 881 

82 766 

150 003 

340 892 

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.

74 

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

APPROPRIATIONS 

Annual accounts of the European Commission 2021 

Policy area 

Budget appropriations 

Commitment appropriations 
Additional 
appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Carry-
overs 

Assigned 
revenue 

Total 
appropr. 
available 

Payment appropriations 

Budget appropriations 

Additional appropriat. 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Carry-
overs 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

6=3+4+5 

7 

8 

9=7+8 

10 

11 

01  Research and Innovation 

12 646 

 (0) 

12 646 

EUR million 

Total 
appropr. 
available 

12=9+10 
+11 
14 431 

08  Agriculture and Maritime Policy 

56 564 

56 644 

 475 

9 403 

66 522 

56 301 

 (780) 

55 521 

 496 

1 641 

57 657 

16 608 

 (0) 

16 608 

 9 

21 636 

38 252 

19 577 

 144 

19 721 

 21 

5 061 

24 802 

02  European Strategic Investments 

03  Single Market 

04  Space 

05 

Regional Development and 
Cohesion 

06  Recovery and Resilience 

07 

Investing in People, Social 
Cohesion and Values 

09  Environment and Climate Action 

10  Migration 

11  Border Management 

12  Security 

13  Defence 

14  External Action 

15  Pre-accession Assistance 

16 

20 

Expenditure outside the annual 
ceilings set out in the Multiannual 
Financial Framework 
Administrative expenditure of the 
European Commission 

21  European Schools and Pensions 

30  Reserves 

Total 

5 237 

 899 

2 034 

 2 

 0 

 (1) 

5 239 

 899 

2 033 

35 410 

 0 

35 410 

 844 

 358 

1 201 

 80 

 (0) 

 22 

 2 

 (3) 

– 

1 930 

1 033 

1 270 

 534 

1 173 

 951 

 (18) 

15 147 

1 884 

 50 

2 475 

2 525 

1 930 

1 011 

1 268 

 537 

1 173 

14 196 

1 901 

3 724 

2 412 

 32 

 1 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

7 331 

6 594 

 60 

 126 

20 009 

10 716 

11 833 

 959 

2 159 

3 955 

 833 

1 688 

 (889) 

 (240) 

 (128) 

 735 

9 828 

3 715 

 705 

2 422 

36 939 

72 350 

45 755 

1 183 

46 938 

 126 

4 476 

 3 

 4 

 4 

 8 

 776 

 78 

 340 

4 495 

 787 

2 766 

11 442 

58 388 

340 523 

341 724 

 821 

 134 

 954 

 398 

46 872 

48 224 

10 925 

12 855 

 31 

 35 

 11 

 24 

1 063 

1 305 

 545 

1 196 

 316 

 127 

15 463 

2 011 

 432 

1 439 

1 247 

 527 

 143 

8 929 

1 882 

 69 

 (76) 

 (91) 

 (20) 

 64 

 621 

 22 

 500 

1 363 

1 156 

 507 

 207 

9 550 

1 905 

 4 

 2 

 2 

 0 

 0 

 30 

 7 

 149 

 31 

 179 

 11 

 1 

 340 

 427 

 653 

1 396 

1 337 

 518 

 208 

9 920 

2 338 

3 942 

6 467 

 70 

2 441 

2 511 

 0 

3 951 

6 462 

 (0) 

3 724 

 369 

4 093 

3 725 

1 495 

(1 281) 

– 

2 412 

 214 

 20 

– 

2 431 

 214 

2 412 

1 295 

(1 233) 

 0 

– 

3 726 

 349 

 370 

2 412 

 63 

 1 

– 

 20 

– 

4 444 

2 432 

 63 

159 939 

2 587  162 526 

 517  438 409  601 452  161 748 

1 956  163 704 

1 453 

76 163 

241 321 

75 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.7.  POLICY AREA: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Commission 2021 

Policy area 

Total 
appropr. 
available 

from 
final 
adopted 
budget 

Commitments made 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2022 

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 

20 009 

12 532 

 32 

2 578 

15 142 

76 % 

 113 

4 752 

4 865 

11 833 

5 236 

 1 

2 246 

7 484 

63 % 

 959 

 899 

2 159 

2 033 

72 350 

1 729 

 22 

 103 

 921 

2 136 

96 % 

99 % 

29 336 

31 064 

43 % 

– 

– 

– 

– 

4 347 

4 347 

 37 

 23 

 37 

 23 

– 

– 

– 

– 

7 506 

7 506 

33 682 

 1 

 2 

 1 

 0 

06  Recovery and Resilience 

341 724 

1 200 

98 278 

99 478 

29 % 

 0  242 245  242 245 

 1 

Appropriations lapsing 

EUR million 

Total 

13=10+ 
11+12 

 1 

 3 

 1 

 0 

33 779 

 1 

 0 

 0 

 0 

– 

 98 

 0 

– 

– 

– 

– 

– 

– 

– 

38 252 

3 831 

 9 

17 565 

21 404 

56 % 

– 

3 902 

3 902 

12 777 

 169 

12 946 

66 522 

55 297 

 470 

3 145 

58 912 

89 % 

 686 

5 869 

6 556 

 661 

 5 

 388 

1 054 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 15 

 6 

 13 

 4 

 24 

 811 

6 % 

 641 

1 004 

 428 

60 % 

77 % 

79 % 

1 196 

100 % 

– 

– 

– 

– 

– 

 212 

13 776 

 30 

1 596 

89 % 

79 % 

1 582 

 318 

10 910 

10 910 

1 133 

 24 

 22 

 7 

– 

 103 

 97 

 24 

 22 

 7 

– 

1 685 

 415 

 398 

 279 

 109 

 0 

 2 

 (0) 

 199 

1 422 

22 % 

1 303 

3 730 

5 033 

– 

 209 

3 919 

96 % 

 15 

2 421 

100 % 

– 

– 

– 

– 

0 % 

 41 

 158 

 158 

 15 

 5 

– 

 5 

 41 

 6 

 173 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

– 

 0 

– 

 0 

 0 

1 133 

 398 

 279 

 109 

 0 

 2 

 0 

 13 

 13 

 1 

– 

– 

 16 

 6 

 173 

Total 

601 452  109 244 

 511  153 999  263 755 

44 % 

4 043  283 739  287 781  49 239 

 5 

 671 

49 916 

76 

01  Research and Innovation 
European Strategic 
Investments 

02 

03  Single Market 

04  Space 

05 

Regional Development and 
Cohesion 

07 

08 

Investing in People, Social 
Cohesion and Values 
Agriculture and Maritime 
Policy 
Environment and Climate 
Action 
10  Migration 

09 

11  Border Management 

12  Security 

13  Defence 

14  External Action 

12 855 

1 063 

1 305 

 545 

 797 

 635 

 991 

 425 

1 196 

1 173 

15 463 

13 563 

15  Pre-accession Assistance 

2 011 

1 566 

16 

Expenditure outside the 
annual ceilings set out in 
the Multiannual Financial 
Framework 
Administrative expenditure 
of the European 
Commission 
European Schools and 
Pensions 
30  Reserves 

21 

20 

6 467 

1 223 

4 093 

3 710 

2 431 

2 406 

 214 

– 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.8.   POLICY AREA: IMPLEMENTATION OF PAYMENT APPROPRIATIONS 

Annual accounts of the European Commission 2021 

Policy area 

Total 
appropr. 
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 

from 
final 
adopted 
budget 

from 
carry-  
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

14 431 

9 698 

 106 

1 084 

5=2+ 
3+4 
10 888 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

75 % 

 127 

3 389 

3 515 

EUR million 

Appropriations lapsing 

06  Recovery and Resilience 

48 224 

 945 

 214 

46 475 

47 634 

99 % 

01  Research and Innovation 
European Strategic 
Investments 

02 

03  Single Market 

04  Space 

05 

Regional Development and 
Cohesion 

07 

08 

Investing in People, Social 
Cohesion and Values 
Agriculture and Maritime 
Policy 
Environment and Climate 
Action 
10  Migration 

09 

11  Border Management 

12  Security 

13  Defence 

14  External Action 

15  Pre-accession Assistance 

16 

Expenditure outside the 
annual ceilings set out in the 
Multiannual Financial 
Framework 
Administrative expenditure of 
the European Commission 
European Schools and 
Pensions 
30  Reserves 

21 

20 

4 495 

3 690 

 787 

 690 

2 766 

2 417 

58 388 

46 935 

 3 

 4 

 4 

 7 

 26 

 196 

 719 

2 617 

91 % 

95 % 

9 262 

56 205 

96 % 

 615 

4 308 

96 % 

 10 

 160 

 51 

 143 

 171 

 60 

 148 

2 180 

2 182 

 397 

 403 

 9 

 5 

 2 

 7 

24 802 

19 696 

 17 

2 901 

22 615 

91 % 

 18 

2 156 

2 174 

57 657 

54 817 

 489 

1 019 

56 325 

98 % 

 688 

 621 

1 309 

 16 

 653 

 494 

1 396 

1 337 

 518 

 208 

9 920 

2 338 

1 361 

1 154 

 498 

 205 

8 550 

1 894 

 4 

 2 

 1 

 0 

 0 

 28 

 6 

 8 

 8 

 22 

 4 

 0 

 166 

 292 

 506 

77 % 

1 370 

1 177 

 502 

 205 

8 743 

2 192 

98 % 

88 % 

97 % 

99 % 

88 % 

94 % 

 5 

 2 

 1 

 3 

 2 

 998 

 11 

 141 

 24 

 157 

 7 

– 

 174 

 135 

 146 

 25 

 159 

 10 

 2 

1 171 

 145 

6 462 

1 208 

 0 

 75 

1 284 

20 % 

1 303 

3 875 

5 178 

 1 

 1 

 1 

 6 

 0 

 3 

 0 

– 

 3 

 15 

 7 

 0 

 1 

 2 

 6 

 21 

 1 

 0 

 0 

 0 

 184 

 3 

 7 

 0 

 0 

 1 

 0 

 0 

 2 

 1 

– 

4 444 

3 373 

 319 

 158 

3 850 

87 % 

 338 

 210 

 548 

 15 

 30 

2 432 

2 406 

 63 

– 

 1 

– 

 13 

2 420 

99 % 

– 

– 

0 % 

 0 

 63 

 6 

– 

 7 

 63 

 6 

– 

– 

– 

Total 

13=12+ 
13+14 

 27 

 17 

 8 

 0 

 1 

 187 

 13 

 23 

 1 

 1 

 1 

 6 

 1 

 5 

 1 

– 

 47 

 6 

– 

 4 

 1 

 0 

 0 

 0 

 0 

 3 

 0 

 0 

 0 

– 

 0 

 0 

 0 

 0 

– 

 2 

– 

– 

Total 

241 321  160 032 

1 203  62 326  223 561 

93 % 

3 591  13 827  17 417 

 82 

 250 

 11 

 343 

77 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EUR million 

Total 
commitm. 
outstanding 
at end of the 
year 

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

Annual accounts of the European Commission 2021 

Commitments outstanding at the end of previous year 

Commitments of the current year 

Policy area 

Commit. 
carried 
forward from 
prev. year 

Decommitments/ 
Revaluations/ 
Cancellations 

Payments 

Commitm. 
outstanding at 
year-end 

Commit. 
made during 
the year 

Payments 

1 

2 

3 

4=1+2+3 

5 

6 

Cancellation 
of commitm. 
which cannot 
be carried-
over 
7 

Commitm. 
outstanding 
at year-end 

8=5+6+7 

9=4+8 

01  Research and Innovation 

02  European Strategic Investments 

03  Single Market 

04  Space 

05 

Regional Development and 
Cohesion 

06  Recovery and Resilience 

07 

Investing in People, Social 
Cohesion and Values 

08  Agriculture and Maritime Policy 

09  Environment and Climate Action 

10  Migration 

11  Border Management 

12  Security 

13  Defence 

14  External Action 

15  Pre-accession Assistance 

16 

20 

Expenditure outside the annual 
ceilings set out in the Multiannual 
Financial Framework 
Administrative expenditure of the 
European Commission 

21  European Schools and Pensions 

25 721 

13 762 

1 011 

1 867 

 (628) 

 (94) 

 (53) 

 (2) 

(9 026) 

(3 138) 

 (470) 

 (998) 

16 067 

10 529 

 487 

 867 

15 142 

(1 863) 

 (17) 

7 484 

(1 169) 

 921 

 (249) 

2 136 

(1 619) 

– 

– 

– 

13 262 

6 315 

 672 

 517 

29 329 

16 844 

1 159 

1 384 

134 961 

 (121) 

(51 138) 

83 701 

31 064 

(5 066) 

 (1) 

25 997 

109 699 

1 209 

47 577 

38 943 

1 917 

3 142 

1 808 

1 174 

 329 

20 536 

8 249 

 11 

 353 

 1 

 (19) 

 (636) 

 553 

99 478 

(46 998) 

 (65) 

(18 212) 

29 301 

21 404 

(4 404) 

– 

– 

52 481 

17 001 

(14 842) 

24 074 

58 912 

(41 483) 

 (0) 

17 429 

 (28) 

 (34) 

 (30) 

 (37) 

 (22) 

 (1) 

 (504) 

 (182) 

 (427) 

(1 182) 

 (622) 

 (296) 

 (203) 

(5 728) 

(2 093) 

1 456 

1 929 

1 149 

 856 

 126 

 811 

 641 

1 004 

 428 

1 196 

 (79) 

 (187) 

 (556) 

 (207) 

 (2) 

14 304 

13 776 

(3 015) 

5 974 

1 596 

 (99) 

 (2) 

 (3) 

 (32) 

 (321) 

– 

 (1) 

 6 

 0 

– 

1 422 

(1 281) 

3 919 

(3 529) 

2 421 

(2 419) 

– 

– 

– 

– 

 (0) 

 (0) 

– 

– 

 (0) 

– 

 732 

 453 

 448 

 222 

1 194 

10 760 

1 497 

 140 

 390 

 2 

53 033 

46 301 

41 502 

2 188 

2 383 

1 597 

1 077 

1 320 

25 065 

7 471 

 147 

 390 

 2 

Total 

302 570 

(1 855) 

(109 335) 

191 381 

263 755  (114 226) 

 (18) 

149 511 

340 892 

78 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.10.  POLICY AREA: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN 

Annual accounts of the European Commission 2021 

Policy area 

<2015 

2015 

2016 

2017 

2018 

2019 

2020 

2021 

Total 

EUR million 

01  Research and Innovation 

02  European Strategic Investments 

03  Single Market 

04  Space 

05  Regional Development and Cohesion 

06  Recovery and Resilience 

07  Investing in People, Social Cohesion and Values 

08  Agriculture and Maritime Policy 

09  Environment and Climate Action 

10  Migration 

11  Border Management 

12  Security 

13  Defence 

14  External Action 

15  Pre-accession Assistance 

16 

20 

Expenditure outside the annual ceilings set out in the 
Multiannual Financial Framework 
Administrative expenditure of the European 
Commission 

21  European Schools and Pensions 

 364 

 194 

 21 

 0 

2 118 

 0 

 428 

 253 

 75 

 0 

 17 

 37 

0 

 878 

 381 

0 

0 

0 

 399 

 90 

 8 

 0 

 301 

 3 

 100 

1 136 

 86 

 1 

 1 

 4 

0 

 451 

 191 

0 

0 

0 

 670 

 338 

 10 

 1 

 595 

 3 

 313 

1 043 

 85 

 52 

 13 

 47 

0 

 870 

 315 

0 

– 

0 

1 182 

 816 

 25 

 2 

2 179 

1 347 

 50 

 57 

4 155 

3 590 

 130 

 139 

6 756 

4 144 

 243 

 668 

13 624 

6 325 

 672 

 517 

29 329 

16 844 

1 159 

1 384 

6 456 

13 131 

24 655 

36 446 

25 997 

109 699 

 12 

2 169 

 941 

 124 

 168 

 27 

 129 

0 

1 500 

 639 

– 

 0 

0 

 24 

3 752 

2 091 

 395 

 371 

 146 

 159 

 0 

2 414 

1 044 

0 

 (0) 

0 

 70 

8 312 

6 919 

 312 

 488 

 377 

 188 

 53 

3 420 

2 073 

 1 

 0 

– 

 397 

14 216 

11 691 

 379 

 847 

 567 

 292 

 72 

4 770 

1 272 

 6 

 0 

– 

52 526 

17 011 

17 429 

 732 

 456 

 448 

 222 

1 194 

53 033 

46 301 

41 502 

2 188 

2 383 

1 597 

1 077 

1 320 

10 763 

25 065 

1 556 

7 471 

 140 

 390 

 2 

 147 

 390 

 2 

Total 

4 765 

2 771 

4 357 

14 190 

27 158 

54 881 

82 766 

150 003 

340 892 

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

79 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2021 

  RECONCILIATION OF ECONOMIC RESULT WITH 

BUDGET RESULT  

ECONOMIC RESULT OF THE YEAR 

Revenue 
Entitlements established in current year but not yet collected 
Entitlements established in previous years and collected in current year 
Accrued revenue (net) 
Expenses 
Accrued expenses (net) 
Amount from liaison account 
Expenses prior year paid in current year 
Net-effect pre-financing 
Payment appropriations carried over to next year 
Payments made from carry-overs & cancellation of unused payment 
appropriations 
Movement in provisions 
Other 

2021 
(42 075) 

EUR million 
2020 
57 349 

(7 050) 
64 353 
(5 434) 

52 987 
3 660 
(1 046) 
(47 463) 
(3 591) 

(4 899) 

1 041 
(3 488) 

(1 289) 
3 878 
(48 762) 

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

2 642 

3 882 
(4 493) 

BUDGET RESULT OF THE YEAR 

6 995 

5 434 

BUDGET RESULT OTHER INSTITUTIONS 

(3 765) 

(3 666) 

BUDGET RESULT OF THE YEAR (EU) 

3 230 

1 768 

80