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 2022
Date: 2023-06-28
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, 28.6.2023  COM(2023) 393 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 2022      
 
 
Annual accounts of the European Commission 2022 

CONTENTS 

CERTIFICATION OF THE ACCOUNTS ..................................................................... 3 

FINANCIAL STATEMENTS AND EXPLANATORY NOTES ............................................. 4 

BALANCE SHEET ............................................................................................. 6 

STATEMENT OF FINANCIAL PERFORMANCE ........................................................ 7 

CASHFLOW STATEMENT .................................................................................. 8 

STATEMENT OF CHANGES IN NET ASSETS ......................................................... 9 

NOTES TO THE FINANCIAL STATEMENTS ......................................................... 10 

BUDGETARY IMPLEMENTATION REPORTS ........................................................... 61 

2 

 
  
 
Annual accounts of the European Commission 2022 

CERTIFICATION OF THE ACCOUNTS 

The annual accounts of the European  Commission  for the year 2022  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 

19 June 2023 

3 

 
 
 
 
 
  
 
 
 
Annual accounts of the European Commission 2022 

EUROPEAN COMMISSION 
FINANCIAL YEAR 2022 

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.

4 

 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

CONTENTS 

BALANCE SHEET ................................................................................................ 6 

STATEMENT OF FINANCIAL PERFORMANCE ........................................................... 7 

CASHFLOW STATEMENT ..................................................................................... 8 

STATEMENT OF CHANGES IN NET ASSETS ............................................................ 9 

NOTES TO THE FINANCIAL STATEMENTS ............................................................ 10 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

SIGNIFICANT ACCOUNTING POLICIES ..................................................... 11 

NOTES TO THE BALANCE SHEET ............................................................. 27 

NOTES TO THE STATEMENT OF FINANCIAL PERFORMANCE ........................ 46 

CONTINGENT LIABILITIES AND ASSETS .................................................. 51 

BUDGETARY AND LEGAL COMMITMENTS ................................................. 53 

FINANCIAL RISK MANAGEMENT .............................................................. 54 

RELATED PARTY DISCLOSURES .............................................................. 59 

EVENTS AFTER THE BALANCE SHEET DATE .............................................. 60 

5 

 
 
 
Annual accounts of the European Commission 2022 

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 

31.12.2022 

 EUR million 
31.12.2021 

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 

 442 
9 820 
1 313 
225 268 
47 303 
18 984 
303 132 

8 821 
54 042 
29 417 
 76 
45 201 
137 557 
440 688 

(80 116) 
(2 009) 
(323 444) 
(405 569) 

 (534) 
(28 275) 
(56 913) 
(85 129) 
(170 851) 
(576 419) 

 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) 

(135 731) 

(86 669) 

Reserves 
Amounts to be called from Member States* 
NET ASSETS 

2.14 
2.15 

 138 
(135 868) 
(135 731) 

 51 
(86 721) 
(86 669) 

*  The European Parliament adopted a budget on  23 November 2022  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  the  following  year.  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. 

6 

 
 
 
 
 
 
   
 
 
 
   
 
 
 
 
 
 
   
 
   
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

STATEMENT OF FINANCIAL PERFORMANCE 

Note 

2022 

EUR million 
2021 

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 
UK Withdrawal Agreement 
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 

103 880 
23 495 
19 666 
6 337 
 915 
1 216 
– 
6 735 
162 245 

2 593 
 864 
3 458 
165 702 

(41 031) 
(16 073) 
(43 083) 

(14 649) 
(3 482) 
(94 049) 

(4 693) 
(5 281) 
(4 743) 
(9 959) 
(7 470) 
(6 961) 
(6 081) 
(257 554) 

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 

(40 829) 
(15 451) 
(46 932) 

(16 727) 
(4 835) 
(63 025) 

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

(91 852) 

(42 075) 

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Annual accounts of the European Commission 2022 

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 

2022 
(91 852) 

 32 
 959 
(40 790) 
(7 005) 

23 958 

 2 
(41 732) 
 (548) 

14 120 

9 268 

8 072 

(3 227) 

45 916 

 102 

(1 396) 

 (121) 

(5 994) 

 (156) 

92 128 
1 736 

1 736 
43 464 
45 201 

EUR million 
2021 
(42 075) 

 27 
 758 
(70 281) 
(30 887) 

1 838 

 (4) 
6 440 
(2 157) 

60 129 

14 538 

13 350 

(1 769) 

(3 241) 

(1 757) 

(1 888) 

 (604) 

(4 703) 

 (629) 

91 000 
28 084 

28 084 
15 380 
43 464 

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STATEMENT OF CHANGES IN NET ASSETS 

Annual accounts of the European Commission 2022 

BALANCE AS AT 31.12.2020 
Impact of revised EAR 11 (see Note 1) 
BALANCE AS AT 01.01.2021 
Remeasurements in employee benefits liabilities 
Other 
2020 budget result credited to Member States 
Economic result of the year 
BALANCE AS AT 31.12.2021 
Remeasurements in employee benefits liabilities 
Other 
2021 budget result credited to Member States 
Economic result of the year 
BALANCE AS AT 31.12.2022 

Amounts to be called from Member 
States 
Accumulated Surplus/(Deficit) 
(41 329) 
1 693 
(39 636) 
(3 241) 
– 
(1 769) 
(42 075) 
(86 721) 
45 916 
 15 
(3 227) 
(91 852) 
(135 868) 

Other reserves 

Fair value 
reserve 

3 031 
(3 043) 
 (12) 
– 
 63 
– 
– 
 51 
– 
 86 
– 
– 
 138 

 470 
 (470) 
– 
– 
– 
– 
– 
– 
– 
– 
– 
– 
– 

EUR million 

Net Assets 

(37 828) 
(1 820) 
(39 648) 
(3 241) 
 63 
(1 769) 
(42 075) 
(86 669) 
45 916 
 102 
(3 227) 
(91 852) 
(135 731) 

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Annual accounts of the European Commission 2022 

NOTES TO THE FINANCIAL STATEMENTS 

For further information in addition to the notes below, please also see the 2022 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.  

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Annual accounts of the European Commission 2022 

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) 

Revised EAR effective for annual periods beginning on or after 1 January 2022 

There are no new EAR which became effective for annual periods beginning on or after 1 January 2022. 

New EAR adopted but not yet effective at 31 December 2022 

There are no new EAR adopted but not yet effective at 31 December 2022. 

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 54 controlled entities and 1 associate (2021: 55 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). 

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Annual accounts of the European Commission 2022 

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  2022,  8  entities  have  been  classified  as  such  minor  entities  (2021:  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 
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. 

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Annual accounts of the European Commission 2022 

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 

31.12.2022 
1.9558 
24.1160 
7.4365 
0.8869 
7.5345 
400.8700 

1.4.2.  Use of estimates 

31.12.2021  Currency 
1.9558  PLN 
24.8580  RON 
7.4364  SEK 
0.8403  CHF 
7.5156  JPY 
369.1900  USD 

31.12.2022 
4.6808 
4.9495 
11.1218 
0.9847 
140.6600 
1.0666 

31.12.2021 
4.5969 
4.949 
10.2503 
1.0331 
130.3800 
1.1326 

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

13 

 
Annual accounts of the European Commission 2022 

activities,  non-capitalisable  development  costs  and  maintenance  costs  are  recognised  as  expenses  as 
incurred. 

Intangible assets are amortised on a straight-line basis over their estimated useful lives (3 to 11 years). 
The  estimated  useful  lives  of  intangible  assets  depend  on  their  specific  economic  life  time  or  legal  life 
time determined by an agreement. 

1.5.2. 

Property, plant and equipment 

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

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

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

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

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

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

Leases 

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

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

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

14 

 
 
 
Annual accounts of the European Commission 2022 

1.5.3. 

Impairment of non-financial assets 

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

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

1.5.4. 

Investments accounted for using the equity method 

Participations in associates and joint ventures 

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

If the EU's share of deficits of an investment accounted for using the equity method equals or exceeds its 
interest  in  the  investment,  the  EU  discontinues  recognising  its  share  of  further  losses  (‘unrecognised 
losses’).  After  the  EU’s  interest  is  reduced  to  zero,  additional  losses  are  provided  for  and  a  liability  is 
recognised only to the extent that the EU has incurred legal or constructive obligation or made payments 
on behalf of the entity. 

If there are indications of  impairment, a write-down to the lower recoverable amount is  necessary. The 
recoverable amount is determined as described under note 1.5.3. If the reason for impairment ceases to 
apply  at  a  later  date,  the  impairment  loss  is  reversed  to  the  carrying  amount  that  would  have  been 
determined had no impairment loss been recognised. 

In  cases  where  the  EU  holds  20%  or  more  of  an  investment  capital  fund,  it  does  not  seek  to  exert 
significant  influence.  Such  funds  are  therefore  treated  as  financial  instruments  and  categorised  as 
financial assets at fair value through surplus or deficit (‘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. 

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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. 

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 2022. 

(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. 

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Annual accounts of the European Commission 2022 

Initial recognition and measurement 

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

Financial  assets  are  initially  measured  at  fair  value.  For  all  financial  assets  not  carried  at  fair  value 
through  surplus  or  deficit,  the  transactions  costs  are  added  to  the  fair  value  at  initial  recognition.  For 
financial assets carried at fair value through surplus or deficit the transaction costs are expensed in the 
statement of financial performance. 

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

When a long-term loan that carries no interest or an interest below market conditions is granted, its fair 
value  can  be  estimated  as  the  present  value  of  all  future  cash  receipts  discounted  using  the  prevailing 
market rate of interest for a similar instrument with a similar credit rating. 

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

 

The  ‘market  environment’  for  EU  lending  is  very  specific  and  different  from  the  capital  market 
used to issue commercial or government debt. As lenders in these markets have the opportunity 
to  choose  alternative  investments,  the  opportunity  of  doing  so  is  factored  into  market  prices. 
However,  this  opportunity  for  alternative  investments  does  not  exist  for  the  EU,  which  is  not 
allowed to invest money in the capital markets; it only borrows funds for the purpose of lending. 
This  means  that  there  is no  alternative  lending  or  investment  option  available  to the  EU  for  the 
sums  borrowed.  Thus,  there  is  no  opportunity  cost  and  therefore  no  basis  of  comparison  with 
market rates. In fact, the EU lending operation itself represents the market. Essentially, since the 
opportunity cost ‘option’ is not applicable, the market price does not fairly reflect the substance of 
the  EU  lending  transactions.  Therefore,  it  is  not  appropriate  to  determine  the  fair  value  of  EU 
lending with reference to commercial or government bonds. 

 

Furthermore,  as  there  is  no  active  market  or  similar  transactions  to  compare  with,  the  interest 
rate  to  be  used  by  the  EU  for  fair  valuing  its  lending  operations  should  be  the  interest  rate 
charged. 

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 

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Annual accounts of the European Commission 2022 

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  balance  sheet.  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. 

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. 

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Annual accounts of the European Commission 2022 

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 
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). 

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Receivables  from  exchange  transactions  are  financial  assets  measured  at  amortised  cost,  except  for 
certain  amounts  of  financial  guarantee  contract  receivable  leg  which  are  classified  as  financial  asset  at 
fair value through surplus or deficit (see note 1.5.5). 

Recoverables from non-exchange transactions are carried at fair value as at the date of acquisition less 
write-down for impairment. A write-down for impairment of recoverables from non-exchange transactions 
is  established  when  there  is  objective  evidence  that  the  EU  will  not  be  able  to  collect  all  amounts  due 
according to the original terms of recoverables from non-exchange transactions. The amount of the write-
down is the difference between the asset’s carrying amount and the recoverable amount. The amount of 
the write-down is recognised in the statement of financial performance. A general write-down, based on 
past  experience,  is  also  made  for  outstanding  recovery  orders  not  already  subject  to  a  specific  write-
down.  See  note  1.5.14  concerning  the  treatment  of  accrued  revenue  at  year-end.  Amounts  displayed 
and disclosed as recoverables from non-exchange transactions are not financial instruments, as they do 
not arise from a contract that would give rise to a financial liability or equity instrument. However, in the 
notes  to  the  financial  statements  recoverables  from  non-exchange  transactions  are  disclosed  together 
with receivables from exchange transactions where appropriate. 

1.5.9.  Cash and cash equivalents 

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

1.5.10.  Employee benefits 

The  EU  provides  a  set  of  benefits  (emoluments  and  social  security)  to  employees.  For  accounting 
purposes these have to be classified into short-term and post-employment benefits. 

Short-term employee benefits 

Short-term employee benefits are those benefits due to be settled before twelve months after the end of 
the  reporting  period  in  which  employees  rendered  the  service,  such  as  salaries,  annual  and  paid  sick 
leaves,  and  other  short-term  allowances.  Short-term  employee  benefits  are  recognised  as  an  expense 
when the related service is provided. A liability is recognised for the amount expected to be paid if the EU 
has a present legal or constructive obligation to pay as a result of past service provided by the employee 
and the obligation can be estimated reliably. 

Post-employment benefits 

The EU grants a set of post-employment benefits to employees, which include retirement, invalidity and 
survival pensions provided under the Pension Scheme of the European Officials (PSEO), as well as health 
insurance  coverage  provided  under  the  Joint  Sickness  Insurance  Scheme  (JSIS)  (see  note  2.9).  These 
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. 

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

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

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

Therefore, in order to depict the economic substance of the underlying transaction required by the faithful 
representation  qualitative  characteristic  of  financial  reporting  as  outlined  in  both  EAR  1  and  the  IPSAS 
Conceptual Framework, the service cost incurred is accrued on a straight-line basis over staff’s estimated 
active service period, i.e. the period from the date when service by the employee first leads to benefits 
under the plan (whether or not the benefits are conditional on further service) until the date when further 
service  by  the  employee  will  lead  to  no  material  amount  of  further  benefits  under  the  plan,  other  than 
from further salary increases. This approach is applied consistently to the benefits provided for under the 
single plan. 

Remeasurements in the net defined benefit liabilities comprise actuarial gains and losses and the return 
on plan assets, and are recognised immediately in net assets. 

The  EU  recognises  the  net  interest  expense  (income)  and  other  expenses  related to the  defined benefit 
plans in the statement of financial performance within the heading ‘Staff and pension costs’. 

When  benefits  provided  are  changed  or  curtailed,  the  resulting  change  in  benefits  that  relates  to  past 
service  or  the  gain  or  loss  on  curtailment  is  recognised  immediately  in  the  statement  of  financial 
performance.  Gains  and  losses  on  settlement  are  recognised  when  the  settlement  occurs.  Past  service 
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. 

21 

 
Annual accounts of the European Commission 2022 

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 
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. 

The  same  measurement  principles  apply  to  the  external  contributions  to  the  EU  programmes,  in  case 
such  contributions  are  received  with  conditions  to  use  the  resources  as  stipulated  in  the  contribution 
agreements or otherwise to return them to the contributor. 

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 

22 

 
Annual accounts of the European Commission 2022 

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. 

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 

23 

 
Annual accounts of the European Commission 2022 

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. 

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. 

24 

 
 
 
Annual accounts of the European Commission 2022 

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. 

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. 

25 

 
Annual accounts of the European Commission 2022 

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). 

26 

 
Annual accounts of the European Commission 2022 

2.  NOTES TO THE BALANCE SHEET  

ASSETS 

2.1.  INTANGIBLE ASSETS  

Gross carrying amount at 31.12.2021 
Additions 
Disposals 
Transfer between asset categories 
Other changes 
Gross carrying amount at 31.12.2022 
Accumulated amortisation at 31.12.2021 
Amortisation charge for the year 
Amortisation written back 
Disposals 
Transfer between asset categories 
Other changes 
Accumulated amortisation at 31.12.2022 
NET CARRYING AMOUNT AT 31.12.2022 
NET CARRYING AMOUNT AT 31.12.2021 

EUR million 

 603 
 114 
 (22) 
– 
– 
 694 
 (238) 
 (32) 
– 
 18 
– 
– 
 (252) 
 442 
 365 

27 

 
 
 
 
 
 
2.2.  PROPERTY, PLANT AND EQUIPMENT 

Annual accounts of the European Commission 2022 

Gross carrying amount at 31.12.2021 

Additions 

Disposals 

Transfer between asset categories 

Other changes 

Gross carrying amount at 31.12.2022 

Accumulated depreciation at 31.12.2021 

Depreciation charge for the year 

Depreciation written back 

Disposals 

Transfer between asset categories 

Land and 
buildings 
1 492 

 16 

 (3) 

 2 

– 

1 507 

 (973) 

 (33) 

– 

 1 

– 

Space 
assets 
7 730 

 7 

 (340) 

 206 

– 

7 603 

(3 250) 

 (811) 

– 

 255 

– 

Plant and 
equipment 
 276 

Furniture 
and vehicles  
 64 

Computer 
hardware 
 210 

 5 

 (13) 

– 

– 

 269 

 (251) 

 (13) 

– 

 13 

– 

 2 

 (6) 

– 

– 

 60 

 (57) 

 (2) 

– 

 6 

– 

 19 

 (19) 

– 

– 

 211 

 (181) 

 (17) 

– 

 18 

– 

Other 

 153 

 3 

 (6) 

– 

– 

 151 

 (136) 

 (6) 

– 

 6 

– 

Finance 
leases  
1 546 

Assets under 
construction 
3 814 

EUR million 

Total 

15 286 

1 397 

 (444) 

– 

 (6) 

16 232 

(5 792) 

 (959) 

 5 

 335 

– 

(6 412) 

1 285 

– 

 (208) 

– 

4 892 

– 

– 

– 

– 

– 

– 

 58 

 (57) 

– 

 (6) 

1 539 

 (945) 

 (78) 

 5 

 37 

– 

Accumulated depreciation at 31.12.2022 

(1 005) 

(3 807) 

 (250) 

 (54) 

 (180) 

 (136) 

 (980) 

NET CARRYING AMOUNT AT 31.12.2022 

NET CARRYING AMOUNT AT 31.12.2021 

 502 

 519 

3 796 

4 480 

 18 

 26 

 7 

 7 

 31 

 29 

 14 

 18 

 559 

 601 

4 892 

3 814 

9 820 

9 493 

28 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

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 2022, the EU holds 30% 
of the ownership interest in EIF (2021: 30%). 

Participation at 31.12.2021 
Contributions 
Dividends received 
Share of net result 
Share in the net assets 
Participation at 31.12.2022 

EIF summarised financial information: 

Assets 
Liabilities 
Revenue 
Expenses 
Surplus/(deficit) 

EUR million 
European Investment Fund 
1 192 
- 
 (4) 
 24 
 102 
1 313 

31.12.2022 
Total EIF 
5 504 
(1 127) 
 340 
 (261) 
 79 

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

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 

31.12.2022 
4 377 
30.0% 

1 313 

EUR million 
31.12.2021 
3 974 
30.0% 

1 192 

The Commission has paid-in 20 % of its subscribed shares in the EIF capital at 31 December 2022, 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 

29 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

2.4.  FINANCIAL ASSETS 

Note 

31.12.2022 

EUR million 
31.12.2021 

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 

199 916 
25 352 
225 268 

4 422 
4 398 
8 821 

160 200 
20 437 
180 637 

3 349 
3 163 
6 512 

Total 

234 089 

187 149 

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  

31.12.2022 
204 103 
 235 
204 338 
199 916 
4 422 

EUR million 
31.12.2021 
163 392 
 157 
163 549 
160 200 
3 349 

Total at 31.12.2021 
New loans (nominal) 
Repayments 
Changes in carrying amount 
Changes in impairment 
Total at 31.12.2022 
Non-current 
Current 

  RRF (NGEU)  SURE 
17 978  90 567 
8 718 
27 187 
– 
– 
 (155) 
 176 
– 
– 

EFSM 
47 138 
2 200 
(2 700) 
 (51) 
– 
45 340  99 130  46 587 
42 666 
45 156  99 026 
3 921 
 104 

 184 

BOP 
7 170 
 201 
7 535 
– 
 (10) 
– 
 0 
 (60) 
–  (2 023) 
 201  12 613 
 200  12 482 
 130 

EUR million 
Total 
MFA  Euratom 
163 392 
 338 
45 639 
– 
(2 733) 
 (23) 
 (90) 
 0 
 (82) 
(2 105) 
 232  204 103 
199 749 
 218 
4 354 
 14 

 1 

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

RRF (NGEU) 
SURE 
EFSM 
BOP 
MFA 
Euratom 

31.12.2022 
0.14% - 2.54% 
(0.48)% - 2.78% 
(0.03)% - 3.79% 
2.95% 
(0.14)% - 3.70% 
(0.08)% - 1.53% 

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% 

30 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

2.4.2. 

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

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

2.4.2.1.  Financial assets at FVSD non-derivatives 

Financial assets at FVSD non-derivatives by type  

Debt securities 
MMFs, ETFs and investments in pooled portfolios 
Other equity investments 
Total 
Non-current 
Current 

Financial assets at FVSD non-derivatives by programme 

Innovation Fund 
BUFI investments 
European Bank for Reconstruction and Development 

Budgetary Guarantee Funds: 
Common Provisioning Fund 

Financial instruments supported by the EU budget: 
Horizon 2020 and Horizon Europe 
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 

Note 
2.4.2.1 
2.4.2.2 

31.12.2022 
28 767 
 984 
29 751 
25 352 
4 398 

EUR million 
31.12.2021 
22 773 
 828 
23 600 
20 437 
3 163 

31.12.2022 
23 340 
2 895 
2 532 
28 767 
24 373 
4 394 

EUR million 
31.12.2021 
17 875 
2 513 
2 384 
22 773 
19 611 
3 161 

31.12.2022 
6 476 
2 015 
 188 
8 679 

EUR million 
31.12.2021 
4 195 
1 257 
 188 
5 640 

14 057 
14 057 

3 766 
 697 
 512 
 214 
 107 
 109 
 628 
6 031 
28 767 
24 373 
4 394 

11 272 
11 272 

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

Fair value hierarchy of non-derivative financial assets at FVSD  

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 

31.12.2022 
23 371 
3 061 

EUR million 
31.12.2021 
17 886 
2 698 

2 335 
28 767 

2 190 
22 773 

31 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

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 1.1.2022 
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 31.12.2022 

2.4.2.2.  Financial assets and liabilities at FVSD derivatives 

Financial assets and liabilities at FVSD derivatives by type 

EUR million 

2 190 
 383 
 (143) 
 (115) 
 19 
– 
– 
– 
2 335 

EUR million 

Type of derivative 

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

Notional 
amount  

31.12.2022 
Fair Value 
Asset 

Fair Value 
Liability 

Notional 
amount  

31.12.2021 
Fair Value 
Asset 

Fair Value 
Liability 

 488 
4 694 
 87 
5 269 

 5 
 979 
– 
 984 
 979 
 5 

– 
 (17) 
 (8) 
 (25) 
 (9) 
 (15) 

 646 
4 148 
 28 
4 822 

 2 
 826 
– 
 828 
 826 
 2 

– 
 (1) 
 (4) 
 (5) 
 (5) 
– 

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 

31.12.2022 

31.12.2021 

Fair Value  
Asset  
– 

Fair Value 
Liability  
– 

Fair Value 
Asset  
– 

Fair Value 
Liability  
– 

EUR million 

5 

979 

 984 

(3) 

(21) 

 (25) 

2 

826 

 828 

(2) 

(2) 

 (5) 

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

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 1.1.2022 
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 31.12.2022 

32 

EUR million 

 824 
 51 
– 
 (98) 
 181 
– 
– 
– 
 958 

 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

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 

31.12.2022 

EUR million 
31.12.2021 

2.5.1 
2.5.2 

2.5.1 
2.5.2 

47 001 
 216 
 86 
47 303 

47 954 
6 087 
54 042 
101 345 

57 637 
2 901 
 126 
60 665 

29 446 
4 229 
33 675 
94 340 

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 
31.12.2022 

Gross 
amount 

Cleared via 
accruals 

EUR million 
Net amount 
at 
31.12.2021 

3 051 

 (527) 

2 525 

3 172 

 (208) 

2 965 

29 812 
11 621 
8 063 

(4 932) 
(1 974) 
(4 498) 

24 880 
9 647 
3 565 

23 531 
9 085 
4 836 

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

42 115 
28 347 
29 568 
 738 

(14 069) 
(5 389) 
(17 104) 
 (582) 

28 047 
22 958 
12 464 
 156 

46 852 
34 879 
23 934 
1 140 

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

7 299 

(4 860) 

2 439 

5 980 

(4 150) 

1 797 

(1 275) 

 522 

1 874 

(1 261) 

12 488 

(7 491) 

4 997 

9 545 

(5 955) 

15 231 
161 783 
47 001 
114 782 

(9 517) 
(66 828) 
– 
(66 828) 

5 714 

13 001 
94 955  142 950 
57 637 
47 001 
85 313 
47 954 

(7 455) 
(55 867) 
– 
(55 867) 

18 960 
7 263 
2 572 

34 549 
30 814 
8 903 
 293 

1 830 

 614 

3 590 

5 546 
87 084 
57 637 
29 446 

2.5.2.  Other advances to Member States 

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

33 

31.12.2022 

EUR million 
31.12.2021 

3 390 

2 914 
6 303 
 216 
6 087 

3 647 

3 483 
7 130 
2 901 
4 229 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

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 

31.12.2022 

EUR million 
31.12.2021 

16 519 
2 466 
18 984 

25 907 
3 510 
29 417 
48 402 

35 108 
5 696 
40 804 

29 426 
2 129 
31 555 
72 359 

2.6.1.  Recoverables from non-exchange transactions 

Note 

31.12.2022 

EUR million 
31.12.2021 

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 

 498 
14 810 
1 011 
 199 
16 519 

5 967 
9 061 
9 420 
1 006 
 453 
25 907 
42 426 

2 491 
30 839 
1 556 
 222 
35 108 

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

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 
  31.12.2022  31.12.2021 
6 137 
1 405 
 15 
 (875) 
– 
6 683 
1 525 

4 397 
1 356 
 7 
 (686) 
– 
5 073 
1 621 

 189 

 (591) 
1 219 
 13 
 10 
 150 
6 465 
 498 
5 967 

 668 

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

34 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

2.6.1.2.  UK Withdrawal agreement 

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

Article 140 
Article 142 
Article 136 
Article 147 

Article 136 
Article 141 
Article 143 
Article 144 
Article 145 
Article 146 

Total 

Article 140  Article 142 
9 587 
– 
9 587 
9 298 
 288 

17 029 
– 
17 029 
8 465 
8 563 

EUR million 
Other  31.12.2022  31.12.2021 
43 982 
26 683 
(2 229) 
(2 812) 
41 753 
23 871 
30 839 
14 810 
10 913 
9 061 

 68 
(2 812) 
(2 744) 
(2 953) 
 209 

Remainder of 
September 
5 090 
2021 
 18 
report: 
 29 
– 
(due and paid 
5 138 
from January to 
May 2022) 
– 
 (34) 
– 
– 
– 
– 
 (34) 

5 104 

April 2022 
report 
4 029 
 236 
(due and paid 
– 
from June to 
 6 
September 
4 271 
2022) 

 (573) 
 (0) 
 (163) 
 (73) 
 (37) 
 (7) 
 (853) 

3 418 

September 
2022 
2 437 
report: 
 11 
 7 
(due and paid 
– 
from October to 
2 455 
December 
2022) 
– 
 (56) 
– 
– 
– 
– 
 (56) 

EUR million 
Total 
payments 
11 556 
in 2022 
 265 
 37 
 6 
11 864 

 (573) 
 (90) 
 (163) 
 (73) 
 (37) 
 (7) 
 (943) 

2 399  10 921 

Article 140 – Outstanding Commitments 

Amount owed by the UK at 31.12.2021 
Net financial corrections related to 2014-2020 or previous programme periods 
(including adjustment of 2021 deductions) 
TOR relating to 2020 and made available to the Union in 2022 
(including adjustment of 2021 deductions) 
Net payments received from the UK in 2022 

Adjustment of estimated non-implementation 

Total 

Non-current 
Current 

Article 142 – Outstanding 2020 liabilities 
Outstanding 2020 liabilities under Article 142 (6) 

EUR million 

28 620 

 (123) 

– 

(11 556) 

 88 

17 029 

8 465 
8 563 

Outstanding 2020 liabilities 
UK Share 

PSEO/JSIS contributions 

Total 

Non-current 
Current 

EUR million 

31.12.2022 

31.12.2021 

73 008 
9 076 
 259 

9 335 

9 076 
 259 

114 507 
14 235 
236 

14 471 

14 235 
 236 

Pension Scheme 
of European 
Officials 
67 840 
8 434 
250 

Joint Sickness 
Insurance 
Scheme 
5 168 
 642 
9 

 651 

 642 
 9 

8 684 

8 434 
 250 

35 

 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

31.12.2022 

EUR million 
31.12.2021 

Other articles 

Due from the UK: 

Article 136 
Article 147 

Due to the UK: 
Article 136 
Article 141 
Article 143 
Article 144 
Article 145 
Article 146 

Total 
Non-current 
Current 

– 
 68 
 68 

 (678) 
(1 637) 
 (313) 
 (54) 
 (111) 
 (20) 
(2 812) 
(2 744) 
(2 953) 

 209 

 557 
 53 
 610 

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

 (908) 

EUR million 

 557 
 20 
 (370) 
 536 

 11 
 (64) 
(1 377) 
 8 
 (678) 

(1 377) 

 699 

Article 136 – Provisions applicable in relation to own resources 

Amount due from the UK at 31.12.2021 
Amount invoiced to the UK in September 2022 
UK Share for undervaluation case 
Payments made to the UK in 2022 
UK correction including the rectified amount of 2018-2019 UK corrections 
update done in 2022 (EUR 3.7 million) 
Update of VAT and GNI adjustments (balances exercise 2021) 
VAT and GNI adjustments (balances exercise 2022) 
UK net traditional own resources after 28 February 2021 

Amount due to the UK at 31.12.2022 

Non-current 

Current 

2.6.1.3.  Recoverables from competition fines 

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

2.6.1.4.  Accrued income and deferred charges 

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

36 

31.12.2022 
13 635 
(2 980) 
(1 235) 
9 420 
– 
9 420 

31.12.2022 
1 931 
 86 
2 017 
1 011 
1 006 

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

EUR million 
31.12.2021 
2 301 
 81 
2 382 
1 556 
 826 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

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 

31.12.2022 

EUR million 
31.12.2021 

1 832 
 597 
 37 
2 466 

 369 
 223 
 (162) 
 127 
2 554 
 400 
3 510 
5 976 

2 630 
3 052 
 14 
5 696 

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

Out  of  the  total  amount  of  EUR  2  201  million  of  the  Financial  Guarantee  Contract  receivable  as  at 
31 December 2022  (2021:  EUR 3  115 million),  EUR 2  198 million  are  classified  as  financial  assets 
measured at fair value through surplus or deficit (Fair value level 3) (2021: EUR 3 113 million). 

37 

 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

2.7.  INVENTORIES 

Scientific materials 
Other 
Total 

31.12.2022 
 54 
 22 
 76 

EUR million 
31.12.2021 
 58 
 20 
 79 

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 

31.12.2022 
21 413 
 178 
 8 
– 
21 598 
19 929 
2 713 
 914 
 47 
45 201 

EUR million 
31.12.2021 
20 121 
 453 
 8 
– 
20 582 
18 027 
2 838 
1 953 
 65 

43 464 

38 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

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 
73 126 
N/A 
73 126 

Other 
retirement 
benefit 
schemes 
1 316 
N/A 
1 316 

Joint 
Sickness 
Insurance 
Scheme 
6 064 
 (390) 
5 674 

31.12.2022 
Total 

EUR million 
31.12.2021 
Total 

80 507 
 (390) 
80 116 

122 234 
 (386) 
121 848 

Actuarial assumptions - employee benefits 

Pension Scheme of European Officials 
Nominal discount rate  
Expected inflation rate  
Real discount rate 
Expected rate of salary increases 
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 

2022 

2021 

3.6% 
2.4% 
1.1% 
1.5% 
63/64/66 

3.6% 
2.4% 
1.1% 
1.6% 
2.3% 

63/64/66 

1.0% 
2.0% 
(1.0)% 
1.8% 
63/64/66 

1.0% 
2.0% 
(1.0)% 
1.9% 
2.5% 
63/64/66 

Movement in present value of employee benefits defined benefit obligation 

Present value as at 31.12.2021 
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 31.12.2022 

Pension 
Scheme of 
European 
Officials  
109 679 

Other 
retirement 
benefit 
Schemes 
1 907 

EUR million 
Total 

Joint 
Sickness 
Insurance 
Scheme 
10 647  122 234 

4 575 
1 096 

 116 
 17 

 310 
 106 

5 001 
1 219 

1 226 
 78 
(41 533) 

 10 
 1 
 (695) 

 (267) 
 11 
(4 642) 

 970 
 91 
(46 869) 

(1 996) 
73 126 

 (41) 
1 316 

 (102) 
6 064 

(2 139) 
80 507 

39 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

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

Present value as at 31.12.2021 
Net movement in plan assets 
Present value as at 31.12.2022 

Pension Scheme of European Officials sensitivity 

EUR million 

 386 
 5 
 390 

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

Defined benefit obligation 

2022 

2021 

Increase 
0.1% 
(1 316) 

Decrease 
0.1% 
1 352 

Increase 
0.1% 
(2 464) 

EUR million 

Decrease 
0.1% 
2 544 

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

Defined benefit obligation 

Increase 0.1% 
1 312 

Decrease 0.1% 
(1 280) 

Increase 0.1% 
2 414 

Decrease 0.1% 
(2 345) 

2022 

EUR million 

2021 

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

Defined benefit obligation 

2022 

One year 
increase 
 (727) 

One year 
decrease 
 988 

2021 

One year 
increase 
(1 155) 

EUR million 

One year 
decrease 
1 527 

Joint Sickness Insurance Scheme sensitivity 

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

2022 
Increase 0.1%  Decrease 0.1% 

2021 
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 

 10 

 (10) 

 13 

 (12) 

 148 

 (144) 

 317 

 (307) 

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

Defined benefit obligation 

2022 
Increase 0.1%  Decrease 0.1% 
 121 

 (118) 

2021 
Increase 0.1%  Decrease 0.1% 
 274 

 (265) 

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% 
 22 

 (23) 

Increase 0.1%  Decrease 0.1% 
 41 

 (42) 

2022 

EUR million 

2021 

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

Defined benefit obligation 

2022 

One year 
increase 
 (173) 

One year 
decrease 
 184 

2021 

One year 
increase 
 (317) 

EUR million 

One year 
decrease 
 334 

40 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

2.10.  PROVISIONS 

Amount at 
31.12.2021 

Revision 
of EAR 
11 

Additional 
provisions 

Unused 
amounts 
reversed 

Amounts 
used 

Transfer 
between 
categories 

Change in 
estimation 

EUR million 
Amount at 
31.12.2022 

 354 
 9 

2 440 

 1 
 287 
3 091 
2 763 

 328 

– 
– 

– 

– 
– 
– 
– 

– 

 222 
 21 

– 

– 
 494 
 737 
 242 

 (83) 
 (3) 

 (216) 
 (2) 

– 

 (38) 

– 
 (246) 
 (332) 
 (84) 

– 
 (40) 
 (296) 
 (218) 

– 
– 

– 

– 
– 

 277 
 26 

 (657) 

1 745 

– 
– 
– 
 (36) 

 0 
– 
 (657) 
 (657) 

 1 
 494 
2 543 
2 009 

 495 

 (248) 

 (77) 

 36 

– 

 534 

Legal cases: 
  Agriculture 
  Other 
Nuclear site 
dismantling 
Financial 
Other 

Total 
Non-current 

Current 

41 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

2.11.  FINANCIAL LIABILITIES 

Non-current 
Financial liabilities at AC 
Financial liabilities at FVSD 
Financial guarantee liabilities 

Current 
Financial liabilities at AC 
Financial liabilities at FVSD 
Financial guarantee liabilities 

Total 

2.11.1.  Financial liabilities at amortised cost  

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

2.11.1.1.  Borrowings for NGEU and financial assistance 

Note 

31.12.2022 

EUR million 
31.12.2021 

2.11.1 
2.4.2.2 
2.11.2 

2.11.1 
2.4.2.2 
2.11.2 

323 257 
 9 
 177 
323 444 

21 980 
 15 
6 279 
28 275 
351 718 

214 230 
 5 
 146 
214 380 

23 442 
– 
7 648 
31 090 
245 470 

Note 
2.11.1.1 
2.11.1.2 

EUR million 
31.12.2022  31.12.2021 
236 720 
 951 
237 672 
214 230 
23 442 

344 303 
 934 
345 237 
323 257 
21 980 

Total at 31.12.2021 
New borrowings - nominal 
Repayments 
Changes in carrying amount 
Total at 31.12.2022 
Non-current 
Current 

SURE 
90 567 
8 718 
– 
 (155) 

NGEU 
91 000 
150 267 
(53 381) 
(4 758) 

EFSM 
47 138 
2 200 
(2 700) 
 (51) 
183 129  99 130  46 587 
42 666 
165 546 
3 921 
17 583 

99 026 
 104 

MFA  Euratom 
 351 
– 
 (23) 
 0 

BOP 
 201 
– 
– 
 0 

7 464 
7 535 
 (10) 
 (60) 
 201  14 929 
14 798 
 200 
 131 
 1 

EUR million 
Total 
236 720 
168 720 
(56 114) 
(5 023) 
 327  344 303 
322 549 
 314 
21 754 
 14 

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

NGEU 
SURE 
EFSM 
BOP 
MFA 
Euratom 

31.12.2022 
(0.49)% - 3.41% 
(0.48)% - 2.78% 
(0.03)% - 3.79% 
2.95% 
(0.14)% - 3.70% 
(0.08)% - 1.53% 

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% 

42 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

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 31.12.2022 
Interest element 
Total future minimum lease payments 
at 31.12.2022 
Total future minimum lease payments at 
31.12.2021 

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 

31.12.2022 

EUR million 
31.12.2021 

 573 
 125 
 10 
 708 

 79 
 30 
– 
 117 
 226 
 934 

 660 
 156 
 31 
 847 

 75 
 28 
– 
 2 
 105 
 951 

Future amounts to be paid 

EUR million 

< 1 year  1 - 5 years  > 5 years  Total Liability 
 640 
 12 
 652 
 166 

 307 
 7 
 314 
 95 

 259 
– 
 259 
 36 

 74 
 6 
 79 
 35 

 114 

 409 

 295 

 115 

 439 

 391 

 819 

 945 

31.12.2022 

31.12.2021 

Financial 
guarantee 
receivable  
(Note 2.6.2) 

Financial 
guarantee 
 liability 

Financial 
guarantee 
receivable   

(Note 2.6.2) 

Financial 
guarantee 
 liability 

EUR million 

2 178 
2 358 
 180 
 332 
 203 
5 252 

 617 
 422 
 60 
 106 
1 204 

6 456 
 177 
6 279 

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 

2 039 
 47 
 3 
 46 
 0 
2 134 

 0 
 37 
– 
 29 
 66 

2 201 
1 832 
 369 

43 

 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

2.12.  PAYABLES 

Gross 
Amount 

Adjustments* 

Net Amount 
at 31.12.2022 

Gross 
Amount 

Adjustments* 

EUR million 
Net Amount 
at 31.12.2021 

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 
Own Ressources 
Payables 

Sundry Payables 

 80 

 (0) 

(1 614) 

 (368) 

 80 

4 644 

2 428 

 30 

6 484 

3 311 

– 

24 629 

19 118 

 (170) 

 (467) 

 907 

1 060 

 677 

1 563 

6 258 

2 796 

24 629 

1 077 

1 527 

 (0) 

(1 878) 

 (596) 

– 

 (58) 

 (320) 

 30 

4 606 

2 715 

19 118 

 619 

1 244 

36 368 

(2 620) 

33 748 

31 183 

(2 851) 

28 331 

15 795 

3 764 

3 605 

N/A 

N/A 

N/A 

15 795 

15 650 

N/A 

15 650 

3 764 

 38 

3 605 

3 625 

– 

N/A 

(2 851) 

 38 

3 625 

47 644 

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

56 913 

50 496 

(2 620) 

59 533 

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 

31.12.2022 
84 976 
 2 
 151 
85 129 

31.12.2022 
17 188 
25 316 
19 625 
8 741 
3 366 
10 739 
84 976 

EUR million 
31.12.2021 
76 962 
 1 
 94 
77 057 

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

44 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

NET ASSETS 

2.14.  RESERVES 

Other reserves 
Total 

31.12.2022 
 138 
 138 

EUR million 
31.12.2021 
 51 
 51 

2.15.  AMOUNTS TO BE CALLED FROM MEMBER STATES 

Amounts to be called from Member States at 31.12.2021 
2021 budget result credited to Member States 
Remeasurements in employee benefits liabilities 
Other  
Economic result of the year 
Total amounts to be called from Member States at 31.12.2022 

EUR million 

86 721 
3 227 
(45 916) 
 (15) 
91 852 
135 868 

45 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

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 

2022 
1 110 
 91 
 15 
1 216 

EUR million 
2021 
1 682 
 61 
 19 
1 762 

3.2.  OTHER REVENUE FROM NON-EXCHANGE 

TRANSACTIONS 

Contribution from Member States to the Innovation Fund 
Contribution from 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 

2022 
3 192 
1 227 
 204 
1 095 
 318 
3 246 
 989 
– 
(4 104) 
 568 
6 735 

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

46 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

REVENUE FROM EXCHANGE TRANSACTIONS 

3.3.  FINANCIAL REVENUE 

Interest on: 
     Late payments 
     Loans 
     Borrowings 
     Other  
Revenue from FGCs 
Gains on financial assets or liabilities at FVSD: 
     Non-derivatives  
     Derivatives 
Dividends 
Other 
Total 

2022 

 (927) 
1 238 
 325 
 119 
1 282 

 128 
 294 
 114 
 20 
2 593 

EUR million 
2021 

1 529 
1 160 
 220 
 9 
 987 

 324 
 815 
 30 
 15 
5 090 

3.4.  OTHER REVENUE FROM EXCHANGE TRANSACTIONS 

Foreign exchange gains 
Share of net result of EIF 
Sales of goods 
Fixed assets related revenue 
Other 
Total 

2022 
 299 
 24 
 17 
 25 
 499 
 864 

EUR million 
2021 
 284 
 169 
 18 
 3 
 253 
 727 

47 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

EXPENSES 

3.5.  SHARED MANAGEMENT  

Implemented by Member States 
European Agricultural Guarantee Fund 
European Agricultural Fund for Rural Development and other rural 
development instruments 
European Regional Development Fund and Cohesion Fund 
European Social Fund 
Other 
Total 

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 

2022 
41 031 

16 073 

43 083 
14 649 
3 482 

EUR million 
2021 
40 829 

15 451 

46 932 
16 727 
4 835 

118 318 

124 774 

2022 
78 518 
69 461 
14 963 
 568 

94 049 

2022 
4 693 
 630 
4 650 
4 743 

14 717 

EUR million 
2021 
48 289 
42 940 
14 233 
 503 

63 025 

EUR million 
2021 
4 211 
 887 
3 624 
3 225 

11 947 

2022 
3 738 
6 221 
9 959 

EUR million 
2021 
3 556 
5 038 
8 593 

48 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

3.9.  FINANCE COSTS 

Interest expenses: 
     Borrowings 
     Loans 
     Finance leases 
     Other  
FGCs - subsidised remuneration 
Net impairment losses on: 
    FGCs 
    Loans and receivables 
Loss on financial assets or liabilities at FVSD: 
    Non-derivatives 
    Derivatives 
Other 
Total 

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 Court decision 
Other 
Total 

2022 

1 912 
 161 
 37 
 23 
 514 

 362 
2 105 

2 203 
 126 
 27 

7 470 

EUR million 
2021 

1 209 
 146 
 44 
 96 
 233 

 947 
1 244 

 195 
 40 
 4 

4 158 

2022 
 735 
1 006 
1 098 
 393 
 608 
 261 
 136 
1 378 
 465 
6 081 

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

The aggregate amount of research and development expenditure recognised as an expense during 2022 
is as follows: 

Research costs 
Non-capitalised development costs 
Total 

2022 
 409 
 71 
 480 

EUR million 
2021 
 390 
 78 
 469 

49 

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

Annual accounts of the European Commission 2022 

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 
UK Withdrawal Agreement 
Other expenses 
Total expenses 
Economic result of the year 

  Single market, 
Innovation 
– 
and Digital 
– 
– 
– 
– 
 62 
– 
1 173 
1 236 
1 471 
 111 
1 582 
2 817 

Cohesion 
and Values 
– 
– 
– 
– 
– 
 620 
– 
 140 
 761 
 18 
 (25) 
 (7) 
 754 

Natural 
Resources and 
– 
Environment 
– 
– 
– 
– 
 468 
– 
 345 
 813 
 1 
 (12) 
 (11) 
 802 

Migration 
and Border 
– 
Management 
– 
– 
– 
– 
 4 
– 
 0 
 4 
– 
 (0) 
 (0) 
 4 

Resilience, 
Security and 
– 
Defence 
– 
– 
– 
– 
 0 
– 
 657 
 657 
 0 
 (3) 
 (3) 
 654 

Neighbour- 
hood and 
– 
the World 
– 
– 
– 
– 
 63 
– 
 206 
 269 
 362 
 67 
 429 
 699 

European 
Public 
– 
Administration 
– 
– 
– 
– 
 0 
– 
(2 874) 
(2 874) 
– 
 345 
 345 
(2 529) 

Not assigned 
to MFF 
103 880 
headings* 
23 495 
19 666 
6 337 
 915 
 (2) 
– 
7 087 
161 379 
 741 
 382 
1 123 
162 502 

EUR million 
Total 

103 880 
23 495 
19 666 
6 337 
 915 
1 216 
– 
6 735 
162 245 
2 593 
 864 
3 458 
165 702 

– 
– 
– 
– 
– 
(12 765) 
(2 848) 
 (418) 
 (225) 
 (493) 
 (882) 
– 
(2 195) 

– 
– 
(43 083) 
(14 649) 
 (764) 
(73 573) 
 (494) 
 (114) 
(2 799) 
 (15) 
 (11) 
– 
 (168) 
(19 825)  (135 670) 
(17 008)  (134 916) 

(41 031) 
(16 073) 
– 
– 
 (755) 
 (906) 
 (90) 
 (5) 
 (1) 
 (2) 
 (6) 
– 
 (305) 
(59 174) 
(58 372) 

– 
– 
– 
– 
 (862) 
 (459) 
(1 018) 
 (241) 
 (6) 
 (0) 
 (0) 
– 
 (19) 
(2 604) 
(2 600) 

– 
– 
– 
– 
 (72) 
 (303) 
 (210) 
 (163) 
 (57) 
 (3) 
 (0) 
– 
 (8) 
 (816) 
 (163) 

– 
– 
– 
– 
 (132) 
(5 802) 
 (25) 
(4 334) 
(1 653) 
 (157) 
 (574) 
– 
 (281) 
(12 957) 
(12 258) 

– 
– 
– 
– 
– 
 (12) 
– 
 (1) 
 (0) 
(9 288) 
 (50) 
– 
(1 323) 
(10 673) 
(13 203) 

– 
– 
– 
– 
 (898) 
 (229) 
 (9) 
 (5) 
 (3) 
– 
(5 946) 
(6 961) 
(1 783) 

(41 031) 
(16 073) 
(43 083) 
(14 649) 
(3 482) 
(94 049) 
(4 693) 
(5 281) 
(4 743) 
(9 959) 
(7 470) 
(6 961) 
(6 081) 
(15 835)  (257 554) 
(91 852) 
146 667 

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

50 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

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 ELM guarantees 
EFSI guarantee 
EFSD guarantee 
InvestEU guarantee 
NDICI external action guarantee 
Total 

31.12.2022 

Guarantees given 
Signed 
30 599 
24 615 
 522 
2 108 
4 515 
105 869  62 359 

Ceiling 
30 599 
25 793 
1 176 
21 280 
27 020 

Disbursed 
20 909 
21 084 
 446 
 324 
 156 
42 919 

EUR million 

Assets 
provisioned* 

2 710 
8 571 
 728 
1 722 
1 067 
14 798 

* The EUR 2.7 bn of assets provisioned for the EIB External Lending Mandate (ELM) guarantee also cover borrowings under legacy MFA 

and Euratom (see note 4.1.2). 

31.12.2021 

EIB ELM guarantees 
EFSI guarantee 
EFSD guarantee 
NDICI external action guarantee 
Total 

Guarantees given 
Signed 
33 026 
24 730 
 611 
 200 
60 442  58 566 

Ceiling 
33 026 
25 826 
1 391 
 200 

Disbursed 
20 835 
20 358 
 535 
 200 
41 928 

Assets 
provisioned* 

2 700 
8 602 
 796 
– 
12 098 

* The EUR 2.7 bn of assets provisioned for the EIB ELM guarantee also cover borrowings under legacy MFA and Euratom (see note 

4.1.2).  

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

Horizon 2020 
Connecting Europe Facility 
COSME 
Other 
Total 

EUR million 
31.12.2022  31.12.2021 
2 590 
 568 
 782 
 653 
4 593 

2 649 
 648 
 674 
 604 
4 576 

4.2.  Contingent liabilities relating to legal cases 

Fines 
Agriculture 
Cohesion 
Other 
Total 

31.12.2022 
2 990 
 194 
– 
2 889 
6 072 

EUR million 
31.12.2021 
2 111 
 79 
 210 
1 146 
3 546 

51 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

4.3.  Contingent assets 

Guarantees received: 
     Performance guarantees 
     Other guarantees 
Other contingent assets 
Total 

31.12.2022 

EUR million 
31.12.2021 

 64 
 2 
 19 
 85 

 68 
 2 
 98 
 169 

52 

 
 
 
 
 
 
Annual accounts of the European Commission 2022 

5.  BUDGETARY AND LEGAL COMMITMENTS 

Outstanding budgetary commitments not yet expensed 
Significant legal commitments 
Total 

Note 
5.1 
5.2 

EUR million 
31.12.2022  31.12.2021 
261 062 
126 936 
387 998 

359 017 
398 419 
757 436 

5.1.  OUTSTANDING BUDGETARY COMMITMENTS NOT YET 

EXPENSED 

Outstanding budgetary commitments not yet expensed 

31.12.2022 
359 017 

EUR million 
31.12.2021 
261 062 

5.2.  SIGNIFICANT LEGAL COMMITMENTS 

Economic, Social and Territorial Cohesion 
Natural Resources and Environment 
Migration and Border Management 
RRF (NGEU) non-repayable support commitments 
Space Programmes 
Connecting Europe Facility 
Brexit Adjustment Reserve 
EURATOM 
HorizonEU 
Fisheries agreements 
EU Solidarity Fund 
Operating lease commitments 
Other contractual commitments 
Total 

5.2.1.  Operating lease commitments 

Buildings 
IT materials and other equipment 
Total 

Note 

5.2.1 

EUR million 
31.12.2022  31.12.2021 
– 
17 662 
– 
99 530 
4 189 
– 
3 072 
 445 
 382 
 412 
– 
 805 
 438 
126 936 

298 948 
82 372 
8 368 
– 
3 548 
1 811 
 296 
 362 
 322 
 265 
 700 
 881 
 545 
398 419 

Future amounts to be paid 
< 1 year  1- 5 years  > 5 years 
 364 
 0 
 364 

 375 
 3 
 379 

 135 
 4 
 138 

EUR million 

Total 
 874 
 7 
 881 

53 

 
 
 
 
 
 
  
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

6. 

FINANCIAL RISK MANAGEMENT 

6.1.  CURRENCY RISK 

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

Financial assets 
Financial assets at AC* 
Financial assets at FVSD 
Non-derivatives 
Derivatives 

Receivables** 
Cash and cash equivalents 

Financial liabilities 
Financial guarantee liability 
Financial liabilities at FVSD 

Total 

Financial assets 
Financial assets at AC* 
Financial assets at FVSD 
Non-derivatives 
Derivatives 

Receivables** 
Cash and cash equivalents 

Financial liabilities 
Financial guarantee liability 
Financial liabilities at FVSD 

Total 

USD 

GBP 

31.12.2022 
SEK 

PLN 

Other 

EUR 

Total 

EUR million 

 83 

– 

– 

– 

 12 

 140 

 235 

 843 
 (483) 
 87 
 71 
 601 

 (793) 
 (1) 
 (795) 
 (194) 

 25 
– 
 110 
 10 

– 
– 
 14 
1 031 
 144  1 045 

 (37) 
 (0) 
– 
– 
 (37) 
 (0) 
 144  1 008 

 20 
– 
 0 
 473 
 493 

 (12) 
 8 
 (4) 
 489 

27 782 
 98 
1 467 
– 
5 631 
 4 
1 274 
42 343 
1 387  77 363 

28 767 
 984 
5 846 
45 201 
81 033 

 (164) 
 19 

(5 450) 
 (50) 
 (146)  (5 500) 
1 242  71 863 

(6 456) 
 (25) 
(6 481) 
74 552 

USD 

GBP 

PLN  SEK 

Other 

EUR 

Total 

31.12.2021 

EUR million 

 63 
– 
 934 
 (646) 
 108 
 74 
 532 

– 
– 
– 
– 
– 
 51 
– 
– 
 98 
 108 
 20  1 014 
 170  1 121 

– 
– 
 23 
– 
 4 
 591 
 617 

 87 
 7 
– 
– 
21 690 
 75 
1 474 
– 
7 318 
 72 
40 250 
1 516 
1 669  70 819 

 157 

22 773 
 828 
7 707 
43 464 
74 928 

(1 047) 
 (1) 
(1 048) 
 (516) 

 (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 

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

If the EUR had strengthened or weakened against the currency concerned by 10 % then this would have 
had the following impact on the economic result: 

FX Rate Increase (+)/ 
Decrease(-) 
+10% 
-10% 

USD 
 18 
 (22) 

2022 

GBP 
 (13) 
 16 

PLN 
 (92) 
 112 

EUR million 

SEK 
 (44) 
 54 

54 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

FX Rate Increase (+)/ 
Decrease(-) 
+10% 
-10% 

USD 
 47 
 (57) 

2021 

GBP 
 (15) 
 19 

PLN 
 (96) 
 118 

EUR million 

SEK 
 (54) 
 66 

6.2.  INTEREST RATE RISK 

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

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

EUR million 

Economic result 

 (699) 
 739 
 (573) 
 608 

2022: Financial assets at FVSD 

2021: Financial assets at FVSD 

6.3.  CREDIT RISK 

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 and loan commitments 
FGCs 
Loan commitments 
Total at 31.12.2022 

*Excluding deferred charges 

Loans: credit quality  

31.12.2022 

EUR million 
31.12.2021 

204 338 
45 201 
5 846 
23 340 
 984 

55 502 
 8 
335 219 

163 549 
43 464 
7 707 
17 875 
 828 

55 267 
– 
288 689 

EUR million 

31.12.2022 

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 

12 833 
62 240 
106 537 
11 923 
193 533 
 (55) 

– 
– 
– 
13 094 
13 094 
(2 361) 

Net carrying amount  

193 478 

10 732 

– 
– 
– 
 29 
 29 
 (27) 

 2 

– 
– 
– 
 114 
 114 
 13 

12 833 
62 240 
106 537 
25 159 
206 769 
(2 431) 

 126 

204 338 

55 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
   
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

31.12.2021 

EUR million 

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 

10 361 
58 991 
79 672 
8 819 
157 842 
 (10) 

Net carrying amount  

157 832 

Loans: Movement in impairment loss allowance  

– 
– 
– 
5 965 
5 965 
 (299) 

5 665 

– 
– 
– 
 29 
 29 
 (26) 

 3 

– 
– 
– 
 48 
 48 
– 

 48 

10 361 
58 991 
79 672 
14 860 
163 884 
 (336) 

163 549 

EUR million 

Stage 1  

Stage 2 

Stage 3 

POCI 

Total  

Loss allowance at 01.01.2022 
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 31.12.2022 

 10 
– 
 (0) 
 (1) 
 9 
 (0) 
– 
 37 
– 
 55 

 299 
– 
 1 
 (0) 
 763 
– 
– 
1 298 
– 
2 361 

 26 
– 
 (1) 
 1 
– 
– 
 (2) 
 3 
– 
 27 

– 
– 
– 
– 
– 
– 
– 
 (13) 
– 
 (13) 

 336 
– 
 0 
– 
 772 
 (0) 
 (2) 
1 326 
– 
2 431 

Cash and cash equivalents: credit quality  

31.12.2022 

31.12.2021 

EUR million 

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  

39 634 
3 507 
1 322 
 737 

45 201 

- 

45 201 

Not due 

Past due 
0-30 days 

Gross carrying amount 
Minus loss allowance 
Net carrying amount 
at 31.12.2022 
Gross carrying amount 
Minus loss allowance 
Net carrying amount 
at 31.12.2021 

1 788 
 (2) 

1 786 

2 728 
 (2) 

2 726 

 7 
 (2) 

 5 

 4 
 (1) 

 3 

56 

Past due 
31-90 
days 
 10 
 (2) 

Past due 
91 days - 
1 year 
 20 
 (13) 

Past due 
> 1 year 

1 986 
 (145) 

 8 

 7 
 (4) 

 4 

 7 

1 841 

 575 
 (17) 

 558 

1 447 
 (143) 

1 304 

39 666 
3 345 
 285 
 167 

43 464 

- 

43 464 

EUR million 
Total 

3 812 
 (163) 

3 648 

4 762 
 (168) 

4 594 

 
 
   
 
 
 
   
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

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  

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

Stage 1 

31.12.2022 
Stage 2 

Total 

Stage 1 

31.12.2021 
Stage 2 

 0 
 3 
 23 
24 124 

 4 
– 
– 
31 339 

 4 
 3 
 23 
55 463 

 7 

 2 

 9 

 0 
 2 
 219 
3 964 

 2 

 1 
– 
– 
51 079 

– 

EUR million 

Total 

 1 
 2 
 219 
55 043 

 2 

24 157 

31 345 

55 502 

4 187 

51 080 

55 267 

Financial guarantee contracts: Movement in the loss allowance  

Stage 1  

Stage 2   

 485 
 (3) 
2 855 
 170 
 (9) 
(2 298) 
1 199 

3 194 

7 048 
 3 
(2 855) 
 45 
 (1) 
(1 110) 
3 130 

3 263 

EUR million 

Total 

7 533 
– 
– 
 215 
 (10) 
(3 409) 
4 330 

6 456 

Loss allowance at 01.01.2022 
Transfer to Stage 2 
Transfer to Stage 1 
Additions 
Release of guarantees 
Remeasurement 
Loss allowance at 31.12.2022 
Financial guarantee liability carrying 
amount at 31.12.2022 

6.4.  LIQUIDITY RISK 

Maturity analysis of non-derivative financial liabilities by remaining contractual maturity 

Undiscounted contractual cash-flows 

EUR million 

Total 

> 5 years 

(383 774) 
(56 913) 
(1 132) 

(280 075) 
– 
 (373) 

Carrying 
amount 
(344 303) 
(56 913) 
 (934) 
(280 448)  (441 819)  (402 150) 
(236 720) 
(249 459) 
(47 644) 
(47 644) 
 (951) 
(1 201) 
(181 144)  (298 305)  (285 316) 

(180 660) 
– 
 (484) 

Borrowings 
Payables 
Other  
Total at 31.12.2022 
Borrowings 
Payables 
Other  
Total at 31.12.2021 

< 1 year  1-5 years 

(23 204) 
(56 913) 
 (268) 
(80 385) 
(23 769) 
(47 644) 
 (153) 
(71 567) 

(80 495) 
– 
 (491) 
(80 986) 
(45 030) 
– 
 (564) 
(45 594) 

57 

 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

Maturity analysis of derivative financial liabilities by remaining contractual maturity  

Undiscounted contractual cash-flows 

Derivative pay leg 
Derivative receive leg 
Net cash flows at 31.12.2022 
Derivative pay leg 
Derivative receive leg 
Net cash flows at 31.12.2021 

  < 1 year  1-5 years  > 5 years 
– 
– 
– 
– 
– 
– 

 (504) 
 487 
 (17) 
 (646) 
 648 
 2 

 (8) 
– 
 (8) 
 (5) 
– 
 (5) 

Total 
 (512)   
 487   

 (25) 
 (651)   
 648   
 (3) 

EUR million 
Carrying 
amount 

 (20) 

 (3) 

Maturity analysis of financial guarantee contracts issued by earliest period in which the guarantee could 
be called 

Total 
(83 343) 
(56 259) 

EUR million 
Carrying 
amount 
(6 456) 
(7 794) 

10% 
253 
290 
469 
1,012 
238 
251 
415 
905 

EUR million 
(10)% 
(253) 
(290) 
(469) 
(1,012) 
(238) 
(251) 
(415) 
(905) 

FGCs at 31.12.2022 
FGCs at 31.12.2021 

< 1 year 
(65 109) 
(55 381) 

Maximum amount of guarantee 
> 5 years 
(4 902) 
 (1) 

1-5 years 
(13 332) 
 (878) 

6.5.  OTHER PRICE RISK 

Equity investments 

MMFs, ETFs and investments in pooled portfolios  
Guarantees on equity* 
Total at 31.12.2022 
Equity investments 

MMFs, ETFs 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. 

58 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

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. 

59 

 
Annual accounts of the European Commission 2022 

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. 

60 

 
Annual accounts of the European Commission 2022 

EUROPEAN COMMISSION 
FINANCIAL YEAR 2022 

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.

61 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

CONTENTS 

EU BUDGET RESULT ................................................................................. 63 

STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS ............... 64 

2.1. 

2.2. 

2.3. 

BUDGET REVENUE ............................................................................. 64 

BUDGET EXPENDITURE: COMMITMENTS BY MULTIANNUAL FINANCIAL 
FRAMEWORK (MFF) HEADING .............................................................. 64 

BUDGET EXPENDITURE: PAYMENTS BY MULTIANNUAL FINANCIAL 
FRAMEWORK (MFF) HEADING .............................................................. 65 

IMPLEMENTATION OF EC BUDGET REVENUE ............................................... 66 

IMPLEMENTATION OF EC BUDGET EXPENDITURE ........................................ 67 

4.1.  MFF: BREAKDOWN & CHANGES IN COMMITMENT & PAYMENT 

APPROPRIATIONS .............................................................................. 67 

4.2.  MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS ................... 68 

4.3.  MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ......................... 69 

4.4.  MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) .................... 70 

4.5.  MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN ....................... 71 

4.6. 

4.7. 

4.8. 

4.9. 

POLICY AREA: BREAKDOWN AND CHANGES IN COMMITMENT AND PAYMENT 
APPROPRIATIONS .............................................................................. 72 

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

POLICY AREA: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ............ 74 

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

4.10.  POLICY AREA: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN .......... 76 

RECONCILIATION OF ECONOMIC RESULT WITH BUDGET RESULT .................. 77 

62 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

   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 

2022 

2021 

245 265 

239 596 

(239 157) 

(226 175) 

(2 452) 

(4 244) 

 80 

(1 121) 

15 152 

14 032 

 (97) 

2 519 

 265 

(6 338) 

14 032 

7 694 

 126 

3 230 

63 

 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

  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 

157 701 

153 928 

157 320 

155 758 

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 

1 383 

 115 

2 980 

1 383 

3 233 

1 779 

 454 

16 634 

3 227 

1 747 

 595 

62 203 

62 203 

10 997 

10 884 

26 689 

20 874 

  Total 

170 195 

169 630 

267 859 

244 404 

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) 

21 775 

56 039 

49 709 

6 330 

56 235 

21 845 

67 805 

61 314 

6 491 

56 681 

33 071 

27 330 

325 372 

218 907 

76 068 

74 632 

249 303 

144 275 

75 200 

68 142 

40 369 

40 369 

41 687 

41 182 

3 091 

1 785 

17 170 

6 199 

– 

3 410 

1 813 

17 670 

6 298 

– 

2 799 

2 219 

3 520 

1 851 

3 446 

1 840 

20 364 

20 153 

7 034 

6 692 

3 531 

6 814 

3 006 

2 602 

  Total 

165 095 

177 742 

476 635 

352 241 

64 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

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 

29 379 

25 174 

129 654 

126 570 

75 546 

54 108 

59 271 

73 015 

53 555 

58 276 

21 474 

62 053 

56 351 

5 702 

56 602 

20 606 

63 140 

57 610 

5 531 

55 782 

40 393 

40 356 

41 674 

41 152 

3 078 

1 238 

12 916 

6 199 

– 

3 373 

1 159 

13 156 

6 298 

– 

2 623 

2 040 

3 642 

1 192 

3 368 

1 154 

14 902 

14 521 

7 424 

6 830 

3 351 

6 782 

 72 

2 602 

  Total 

166 183 

165 553 

255 646 

238 520 

65 

 
 
 
 
 
 
 
 
 
  
 
   IMPLEMENTATION OF EC BUDGET REVENUE 

Annual accounts of the European Commission 2022 

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 

157 701 

153 928 

155 083 

2 237 

157 320 

155 073 

 686 

155 758 

101 % 

1 562 

2  Surpluses, balances and adjustments 

 0 

2 980 

3 227 

3  Administrative revenue 

1 383 

1 383 

1 734 

 7 

 46 

3 233 

1 779 

3 227 

1 712 

– 

 35 

3 227 

108 % 

1 747 

126 % 

 7 

 33 

4 

5 

6 

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

 115 

 454 

 (226) 

16 861 

16 634 

 (949) 

1 544 

 595 

131 % 

16 039 

 0 

 0 

62 203 

– 

62 203 

62 203 

– 

62 203 

– 

– 

10 997 

10 884 

20 402 

6 287 

26 689 

14 952 

5 922 

20 874 

192 % 

5 815 

  Total 

170 195 

169 630  242 422  25 437  267 859 

236 217 

8 187 

244 404  144 % 

23 455 

66 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
   IMPLEMENTATION OF EC BUDGET EXPENDITURE  

Annual accounts of the European Commission 2022 

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 

21 775 

 70 

21 845 

 230 

10 995 

33 071 

21 474 

 (868) 

20 606 

 147 

8 625 

29 379 

2  Cohesion, Resilience and Values 

56 039 

11 766 

67 805 

 0 

257 566 

325 372 

62 053 

1 088 

63 140 

 27 

66 487 

129 654 

    Economic, social and territorial 
cohesion 
    Resilience and values 

49 709 

11 605 

61 314 

– 

14 754 

76 068 

56 351 

1 259 

57 610 

 3 

17 934 

75 546 

6 330 

 161 

6 491 

 0 

242 812 

249 303 

5 702 

 (171) 

5 531 

 25 

48 553 

3  Natural Resources and Environment 

56 235 

 446 

56 681 

 686 

17 832 

75 200 

56 602 

 (820) 

55 782 

 693 

2 797 

    of which market-related 
expenditure and direct payments 
4  Migration and Border Management 

5  Security and Defence 

40 369 

 0 

40 369 

 686 

 632 

41 687 

40 393 

 (37) 

40 356 

 687 

3 091 

1 785 

 319 

 28 

3 410 

1 813 

 2 

– 

 108 

 38 

3 520 

1 851 

3 078 

1 238 

 294 

 (79) 

3 373 

1 159 

 27 

 5 

6  Neighbourhood and the World 

17 170 

 500 

17 670 

2 237 

 456 

20 364 

12 916 

 240 

13 156  1 048 

7  European Public Administration 

O  Outside MFF 

S 

Solidarity mechanisms within and 
outside the Union (Special 
instruments) 

6 199 

– 

 99 

– 

6 298 

– 

– 

– 

 736 

6 692 

7 034 

6 692 

6 199 

– 

 99 

– 

6 298 

 390 

– 

– 

6 830 

2 799 

 (580) 

2 219 

1 303 

 10 

3 531 

2 623 

 (583) 

2 040  1 303 

 8 

3 351 

  Total 

165 095 

12 647  177 742 

4 459  294 434  476 635  166 183 

 (629)  165 553  3 640 

86 452 

255 646 

67 

54 108 

59 271 

41 674 

3 642 

1 192 

14 902 

7 424 

6 830 

 632 

 242 

 28 

 698 

 736 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.2.  MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Commission 2022 

MFF Heading 

Total 
appropr. 
available 

Commitments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2023 
from 
assigned 
revenue 

from final 
adopted 
budget 

Total 

EUR million 

Appropriations lapsing 

from final 
adopted 
budget 

from 
carry- 
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

5=2+3+
4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

1 

2 

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

33 071 

21 843 

 230 

5 257 

27 330 

83 % 

– 

5 738 

5 738 

 2 

325 372 

66 644 

 0  152 263  218 907 

67 % 

 159  105 221  105 381 

1 002 

76 068 

60 159 

– 

14 473 

74 632 

98 % 

 159 

 199 

 359 

 996 

    Resilience and values 

249 303 

6 485 

 0  137 790  144 275 

58 % 

 0  105 022  105 022 

 5 

– 

– 

– 

– 

 1 

 82 

 82 

 1 

75 200 

56 070 

 676 

11 396 

68 142 

91 % 

 488 

6 275 

6 763 

 123 

 10 

 161 

41 687 

39 876 

 676 

 629 

41 182 

99 % 

 485 

 2 

 488 

 7 

 10 

3 

4 

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

6 

7 

Neighbourhood and the 
World 
European Public 
Administration 

O  Outside MFF 

S 

Solidarity mechanisms within 
and outside the Union 
(Special instruments) 

5  Security and Defence 

1 851 

1 809 

3 520 

3 395 

 2 

– 

 50 

 30 

3 446 

98 % 

1 840 

99 % 

20 364 

17 633 

2 237 

 283 

20 153 

99 % 

7 034 

6 288 

6 692 

– 

– 

– 

 526 

6 814 

97 % 

3 006 

3 006 

45 % 

 16 

 3 

 38 

– 

– 

 58 

 7 

 74 

 11 

 173 

 211 

 209 

 209 

3 686 

3 686 

 0 

 0 

 0 

 10 

– 

 0 

 0 

 0 

 0 

 0 

– 

 7 

– 

– 

 0 

– 

– 

– 

3 531 

1 299 

1 303 

– 

2 602 

74 % 

 746 

 3 

 749 

 173 

  Total 

476 635  174 981 

4 448  172 812  352 241 

74 % 

1 451  121 371  122 821 

1 311 

 11 

 252 

1 573 

68 

Total 

13=10+ 
11+12 

 3 

1 084 

1 078 

 6 

 295 

 18 

 0 

 1 

 0 

 10 

– 

 180 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.3.  MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS 

Annual accounts of the European Commission 2022 

1 

2 

3 

4 

5 

6 

7 

O 

S 

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

MFF Heading 

Total 
appropr
. 
availabl
e 

from 
final 
adopted 
budget 

Payments made 

Appropriations carried over 
to 2023 

Appropriations lapsing 

EUR million 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

from 
final 
adopted 
budget 

from 
carry-  
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

5=2+ 
3+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

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

29 379 

20 471 

 132 

4 570 

25 174 

86 % 

 112 

4 052 

4 164 

129 654 

63 055 

 24 

63 491  126 570 

98 % 

 76 

2 995 

3 071 

75 546 

57 600 

 1 

15 414 

73 015 

97 % 

 3 

2 520 

2 523 

    Resilience and values 

54 108 

5 455 

 23 

48 077 

53 555 

99 % 

 73 

 475 

 548 

 23 

 10 

 7 

 3 

 15 

 3 

 2 

 2 

59 271 

55 198 

 682 

2 396 

58 276 

98 % 

 493 

 401 

 894 

 91 

 11 

41 674 

39 846 

 677 

 629 

41 152 

99 % 

 486 

 2 

 488 

 24 

 10 

Security and Defence 

1 192 

1 130 

3 642 

3 292 

 26 

 5 

 49 

3 368 

92 % 

 19 

1 154 

97 % 

 3 

 6 

 193 

 196 

 9 

 15 

Neighbourhood and the 
World 
European Public 
Administration 

14 902 

13 049 

1 032 

 440 

14 521 

97 % 

 93 

 258 

 352 

7 424 

5 962 

 361 

 459 

6 782 

91 % 

 326 

 276 

 603 

Outside MFF 

6 830 

– 

– 

 72 

 72 

1 % 

– 

6 757 

6 757 

Solidarity mechanisms 
within and outside the 
Union (Special instruments) 

3 351 

1 294 

1 303 

 5 

2 602 

78 % 

 746 

 3 

 749 

 78 

 23 

 13 

 10 

– 

 0 

 0 

 0 

 16 

 29 

– 

– 

Total 

255 646  163 451 

3 565  71 504  238 520 

93 % 

1 855  14 944  16 799 

 247 

 75 

 4 

 326 

69 

Total 

13=10+ 
11+12 

 41 

 14 

 8 

 5 

 102 

 34 

 78 

 23 

 30 

 39 

– 

 0 

 3 

 1 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 1 

– 

– 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.4.  MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) 

Annual accounts of the European Commission 2022 

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 

 (733) 

(19 163) 

28 820 

27 330 

(6 011) 

 (10) 

21 309 

50 130 

 (288) 

(89 146) 

119 599 

218 907 

(37 423) 

 (1) 

181 482 

301 081 

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 

48 717 

209 033 

152 840 

56 193 

43 691 

 334 

3 980 

2 397 

 (155) 

(65 983) 

86 703 

74 632 

(7 032) 

 (133) 

(23 163) 

32 896 

144 275 

(30 392) 

 (98) 

(16 091) 

27 502 

68 142 

(42 185) 

 (6) 

 (118) 

 210 

41 182 

(41 034) 

 (50) 

(1 464) 

 (21) 

 (769) 

2 465 

1 607 

3 446 

(1 903) 

1 840 

 (385) 

6  Neighbourhood and the World 

32 535 

(1 205) 

(8 701) 

22 629 

20 153 

(5 820) 

7  European Public Administration 

O  Outside MFF 

S 

Solidarity mechanisms within and 
outside the Union (Special instruments) 

 392 

 147 

– 

 (30) 

 (362) 

 (9) 

 (11) 

 0 

 127 

6 814 

(6 420) 

3 006 

 (62) 

– 

– 

– 

2 602 

(2 602) 

 (1) 

 (0) 

 (0) 

– 

– 

 (0) 

 (0) 

 (0) 

– 

– 

67 599 

154 302 

113 883 

146 779 

25 957 

53 459 

 147 

1 543 

1 455 

 357 

4 008 

3 061 

14 333 

36 962 

 394 

2 944 

 0 

 394 

3 071 

 0 

  Total 

340 892 

(2 435)  (135 708)  202 749 

352 241  (102 812) 

 (11) 

249 417 

452 167 

70 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.5.  MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN 

Annual accounts of the European Commission 2022 

1 

2 

3 

4 

5 

6 

7 

O 

S 

MFF heading 

<2016 

2016 

2017 

2018 

2019 

2020 

2021 

2022 

Total 

Single Market, Innovation and Digital 

Cohesion, Resilience and Values 

Natural Resources and Environment 

Migration and Border Management 

Security and Defence 

Neighbourhood and the World 

European Public Administration 

Outside MFF 
Solidarity mechanisms within and outside the Union 
(Special instruments) 
Total 

 634 

2 129 

1 484 

 17 

 28 

 612 

 528 

1 100 

 26 

 9 

1 364 

6 063 

1 017 

 105 

 111 

2 072 

5 400 

8 895 

9 823 

21 329 

50 130 

8 997 

15 494 

25 268 

61 090 

181 512 

301 081 

1 275 

2 349 

6 638 

13 640 

25 957 

53 459 

 170 

 134 

 559 

 204 

1 025 

 320 

 562 

 801 

1 543 

1 455 

4 008 

3 061 

1 152 

 814 

1 365 

2 492 

3 943 

4 452 

8 411 

14 333 

36 962 

0 

0 

0 

0 

0 

0 

– 

0 

0 

– 

0 

0 

 0 

– 

0 

 0 

 0 

0 

 0 

 127 

0 

 394 

2 944 

 0 

 394 

3 071 

 0 

5 445 

3 090 

10 025 

15 140 

27 949 

46 599 

94 453 

249 466 

452 167 

  EUR million 

An  internal  re-organisation  at  the  HADEA  agency  included a  re-allocation of  transactions  resulting  in  a  shift of  outstanding  amount  (49  EUR  million)  between years.  The overall 
amount of outstanding commitments remains unchanged. 

71 

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

  APPROPRIATIONS 

Annual accounts of the European Commission 2022 

08  Agriculture and Maritime Policy 

54 254 

54 420 

 686 

6 781 

61 888 

56 003 

 (813) 

55 189 

 688 

2 439 

58 316 

Policy area 

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 

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 

EUR million 

Total 
appropr. 
available 

12=9+10 
+11 
19 588 

6 590 

 930 

2 271 

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 

13 237 

 230 

13 237 

5 507 

 953 

2 077 

 0 

 2 

 70 

– 

5 509 

1 023 

2 077 

36 570 

8 836 

45 406 

6 037 

4 759 

 71 

 129 

19 504 

13 558 

 (598) 

12 960 

10 268 

1 093 

2 205 

4 853 

 904 

 (62) 

 (65) 

2 156 

 (140) 

4 791 

 839 

2 016 

8 653 

54 059 

42 651 

 914 

43 565 

– 

– 

– 

– 

1 508 

 177 

1 685 

 0 

242 344 

244 029 

1 093 

 (64) 

1 029 

 122 

 11 

 9 

 5 

 2 

 7 

6 505 

1 788 

 82 

 249 

12 374 

55 942 

47 955 

48 991 

17 961 

2 753 

20 715 

– 

6 569 

27 284 

18 309 

 237 

18 546 

 19 

6 157 

24 722 

1 978 

1 273 

1 816 

 592 

1 177 

15 159 

2 012 

 167 

 283 

 291 

 30 

 44 

– 

 519 

 (19) 

2 261 

1 564 

1 846 

 636 

1 177 

– 

 2 

– 

– 

– 

15 678 

1 992 

1 906 

 331 

11 051 

13 312 

1 603 

1 918 

 652 

1 199 

 595 

1 445 

1 631 

 567 

 655 

17 896 

10 544 

 (3) 

 200 

 96 

 (38) 

 (25) 

 761 

 592 

1 646 

1 727 

 529 

 630 

 5 

 26 

 1 

 3 

 2 

11 305 

1 037 

2 468 

2 372 

 (521) 

1 851 

 11 

 36 

 72 

 16 

 22 

 312 

 145 

 358 

 36 

 207 

 16 

 12 

 360 

 338 

 956 

1 707 

1 935 

 548 

 644 

12 703 

2 200 

 50 

1 995 

2 045 

1 303 

6 702 

10 050 

 75 

1 965 

2 040 

1 303 

6 838 

10 181 

3 868 

2 331 

 12 

 87 

2 774 

(2 600) 

3 880 

2 418 

 173 

– 

– 

– 

 475 

4 355 

3 868 

 261 

– 

2 679 

 173 

2 331 

2 572 

(2 572) 

 12 

 87 

3 880 

 388 

2 418 

– 

 2 

– 

 476 

 261 

– 

4 743 

2 681 

– 

165 095 

12 647  177 742 

4 459  294 434  476 635  166 183 

 (629)  165 553 

3 640 

86 452 

255 646 

72 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.7.  POLICY AREA: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Commission 2022 

Policy area 

Total 
appropr. 
available 

from 
final 
adopted 
budget 

Commitments made 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2023 

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 

Appropriations lapsing 

EUR million 

19 504 

13 236 

 230 

2 943 

16 409 

84 % 

10 268 

5 508 

1 093 

2 205 

1 022 

2 077 

54 059 

44 307 

– 

– 

– 

– 

2 202 

7 710 

75 % 

 33 

 79 

1 056 

2 156 

97 % 

98 % 

– 

– 

– 

– 

3 094 

3 094 

2 557 

2 557 

 37 

 50 

 37 

 50 

 1 

 1 

 0 

– 

8 414 

52 721 

98 % 

 151 

 166 

 317 

 947 

 73 

1 020 

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 

06  Recovery and Resilience 

244 029 

1 684 

 0  137 535  139 219 

57 % 

 0  104 809  104 809 

27 284 

20 653 

– 

6 314 

26 967 

99 % 

 8 

 246 

 255 

61 888 

53 925 

 676 

6 394 

60 995 

99 % 

 488 

 226 

 715 

 1 

 53 

 7 

13 312 

2 145 

1 603 

1 918 

 652 

1 557 

1 838 

 632 

1 199 

1 177 

– 

 2 

– 

– 

– 

5 003 

7 148 

54 % 

 27 

 23 

 8 

 22 

1 585 

1 861 

 640 

99 % 

97 % 

98 % 

1 199 

100 % 

– 

 8 

 8 

 3 

– 

 34 

 4 

6 048 

6 048 

 116 

 10 

 49 

 7 

– 

 122 

 51 

 17 

 57 

 11 

– 

 156 

 55 

 0 

 0 

 0 

– 

 0 

 (0) 

14  External Action 

17 896 

15 644 

1 906 

 190 

17 740 

15  Pre-accession Assistance 

2 468 

1 989 

 331 

 94 

2 413 

99 % 

98 % 

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 

10 050 

1 299 

1 303 

3 006 

5 608 

56 % 

 746 

3 689 

4 435 

 0 

4 355 

3 870 

2 679 

2 418 

 173 

– 

– 

– 

– 

 271 

4 141 

95 % 

 255 

2 673 

100 % 

– 

– 

0 % 

– 

– 

– 

 203 

 203 

 10 

 6 

– 

 6 

– 

 0 

 173 

Total 

13=10+ 
11+12 

 1 

 1 

 1 

– 

 1 

 63 

 179 

 116 

 0 

 0 

 1 

– 

 0 

 0 

 7 

 10 

 0 

 173 

1 573 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

 1 

– 

 0 

 9 

 10 

 161 

– 

– 

– 

– 

– 

 0 

 0 

– 

– 

– 

– 

 0 

 0 

 0 

 0 

– 

 0 

– 

 7 

 0 

 (0) 

– 

Total 

476 635  174 981 

4 448  172 812  352 241 

74 % 

1 451  121 371  122 821 

1 311 

 11 

 252 

73 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.8.   POLICY AREA: IMPLEMENTATION OF PAYMENT APPROPRIATIONS 

Annual accounts of the European Commission 2022 

Policy area 

Total 
appropr. 
available 

from 
final 
adopted 
budget 

Payments made 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2023 

from final 
adopted 
budget 

from 
assigned 
revenue 

Total 

from 
final 
adopted 
budget 

from 
carry-  
overs 

from 
assigned 
revenue 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

EUR million 

Appropriations lapsing 

1 

2 

3 

4 

19 588 

12 869 

 109 

2 819 

5=2+ 
3+4 
15 797 

81 % 

6 590 

4 768 

 10 

1 660 

6 438 

98 % 

 930 

 823 

2 271 

2 012 

55 942 

43 557 

 8 

 5 

 1 

 6 

 32 

 61 

 862 

2 077 

93 % 

91 % 

10 808 

54 367 

97 % 

47 846 

48 829 

100 % 

24 722 

18 521 

 17 

4 836 

23 374 

95 % 

 89 

 12 

 6 

 5 

 2 

 51 

 23 

3 685 

3 773 

 128 

 50 

 189 

 140 

 57 

 193 

1 566 

1 568 

 109 

 159 

1 320 

1 344 

 2 

 11 

 10 

 0 

 7 

 1 

 2 

 13 

 0 

 1 

 1 

 1 

 1 

 2 

58 316 

54 612 

 677 

2 218 

57 507 

99 % 

 487 

 220 

 707 

 91 

 11 

 956 

 586 

1 707 

1 935 

 548 

 644 

1 597 

1 695 

 503 

 627 

 5 

 25 

 1 

 3 

 2 

 178 

 769 

80 % 

 23 

 26 

 7 

 12 

1 645 

1 722 

 513 

 641 

 187 

 253 

12 431 

2 090 

96 % 

89 % 

94 % 

100 % 

98 % 

95 % 

 6 

 2 

 1 

 3 

 3 

 77 

 17 

 180 

 12 

 181 

 9 

– 

 173 

 85 

 187 

 14 

 182 

 12 

 3 

 250 

 101 

10 181 

1 294 

1 303 

 78 

2 674 

26 % 

 746 

6 760 

7 506 

 0 

 47 

 30 

 23 

 0 

 8 

 6 

 0 

 0 

 0 

 0 

 0 

 0 

 14 

 2 

– 

06  Recovery and Resilience 

48 991 

 977 

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 

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 

14  External Action 

12 703 

11 221 

1 023 

15  Pre-accession Assistance 

2 200 

1 829 

 8 

4 743 

3 543 

 359 

 205 

4 108 

87 % 

 326 

 270 

 596 

 10 

 29 

2 681 

2 418 

– 

– 

 2 

– 

 254 

2 674 

100 % 

– 

– 

 0 

– 

 6 

– 

 7 

– 

 0 

– 

– 

– 

Total 

255 646  163 451 

3 565  71 504  238 520 

93 % 

1 855  14 944  16 799 

 247 

 75 

74 

Total 

13=12+ 
13+14 

 18 

 12 

 11 

 1 

 7 

 2 

 4 

 101 

 0 

 48 

 30 

 23 

 0 

 22 

 8 

 0 

 39 

 0 

– 

 326 

 2 

 0 

 0 

 0 

 (0) 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 (0) 

– 

 1 

 (0) 

– 

 4 

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

Annual accounts of the European Commission 2022 

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 

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 

1 

2 

3 

4=1+2+3 

5 

6 

29 329 

16 844 

1 159 

1 384 

 (418) 

 (253) 

 (59) 

 (4) 

(12 145) 

(5 691) 

 (555) 

 (772) 

16 767 

10 900 

 545 

 608 

16 409 

(3 652) 

7 710 

1 056 

2 156 

 (748) 

 (307) 

(1 304) 

109 700 

 (134) 

(49 026) 

60 540 

52 721 

(5 340) 

53 033 

46 300 

41 502 

2 188 

2 383 

1 597 

1 077 

1 320 

25 065 

7 471 

 147 

 390 

 2 

 (37) 

(21 648) 

31 349 

139 219 

(27 181) 

 (117) 

(18 473) 

27 711 

26 967 

(4 902) 

 (61) 

 (36) 

 (39) 

 (11) 

 (20) 

 (1) 

(1 066) 

 (139) 

(15 584) 

25 857 

60 995 

(41 923) 

 (506) 

 (861) 

 (603) 

 (207) 

 (562) 

(6 929) 

(1 773) 

1 646 

1 482 

 983 

 850 

 757 

7 148 

1 585 

1 861 

 640 

1 199 

 (262) 

 (784) 

(1 119) 

 (306) 

 (79) 

17 070 

17 740 

(5 502) 

5 559 

2 413 

 (318) 

 (9) 

 (11) 

 127 

5 608 

(2 664) 

 (30) 

 (360) 

– 

 (2) 

 0 

– 

4 141 

(3 748) 

2 673 

(2 672) 

Cancellation 
of commitm. 
which cannot 
be carried-
over 
7 

 (9) 

– 

 (0) 

– 

 (1) 

 (0) 

 (0) 

 (0) 

– 

– 

– 

– 

 (0) 

 (0) 

– 

– 

 (0) 

– 

EUR million 

Total 
commitm. 
outstanding 
at end of the 
year 

Commitm. 
outstanding 
at year-end 

8=5+6+7 

9=4+8 

12 748 

6 962 

 749 

 851 

29 514 

17 862 

1 293 

1 459 

47 380 

107 920 

112 037 

143 386 

22 065 

19 072 

6 885 

 801 

 742 

 335 

1 120 

12 237 

2 096 

49 775 

44 928 

8 531 

2 283 

1 725 

1 185 

1 876 

29 307 

7 655 

2 944 

3 071 

 393 

 1 

 393 

 1 

Total 

340 892 

(2 435) 

(135 708) 

202 749 

352 241  (102 812) 

 (11) 

249 417 

452 167 

75 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.10.  POLICY AREA: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN 

Annual accounts of the European Commission 2022 

Policy area 

<2016 

2016 

2017 

2018 

2019 

2020 

2021 

2022 

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 

 408 

 198 

 28 

– 

1 667 

 0 

 462 

1 388 

 96 

– 

 17 

 28 

0 

 806 

 346 

0 

0 

0 

 391 

 211 

 10 

– 

 386 

 1 

 141 

1 042 

 58 

 17 

 9 

 9 

0 

 592 

 222 

0 

0 

0 

 718 

 625 

 20 

 1 

1 296 

 713 

 26 

 37 

2 520 

2 737 

 68 

 74 

5 053 

3 331 

 109 

 402 

6 379 

3 084 

 266 

 94 

12 750 

6 962 

 766 

 851 

29 514 

17 862 

1 293 

1 459 

4 686 

6 859 

12 101 

18 186 

16 654 

47 380 

107 920 

 4 

1 373 

 921 

 96 

 98 

 8 

 111 

0 

1 023 

 343 

0 

– 

0 

 13 

2 125 

 974 

 301 

 135 

 36 

 133 

 0 

1 780 

 712 

0 

– 

0 

 35 

3 359 

2 078 

 271 

 316 

 243 

 160 

 43 

2 394 

1 549 

– 

 0 

0 

 248 

31 020 

112 067 

143 386 

6 834 

6 301 

13 416 

13 152 

 336 

 645 

 381 

 249 

 71 

3 485 

 968 

 0 

 0 

0 

 488 

 272 

 290 

 159 

 642 

6 990 

1 421 

 127 

 0 

– 

22 065 

19 072 

6 885 

 801 

 742 

 335 

1 120 

49 775 

44 928 

8 531 

2 283 

1 725 

1 185 

1 876 

12 237 

29 307 

2 096 

2 944 

 393 

 1 

7 655 

3 071 

 393 

 1 

Total 

5 445 

3 090 

10 025 

15 140 

27 949 

46 599 

94 453 

249 466 

452 167 

An  internal  re-organisation  at  the  HADEA  agency  included a  re-allocation of  transactions  resulting  in  a  shift of  outstanding  amount  (49  EUR  million)  between years.  The overall 
amount of outstanding commitments remains unchanged. 

76 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2022 

  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 

2022 
(91 852) 

EUR million 
2021 
(42 075) 

(5 972) 
74 070 
2 072 

45 599 
4 104 
(2 053) 
(21 630) 
(1 855) 

2 473 

3 635 
(2 181) 

(7 050) 
64 353 
(5 434) 

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

(4 899) 

1 041 
(3 488) 

BUDGET RESULT OF THE YEAR 

6 409 

6 995 

BUDGET RESULT OTHER INSTITUTIONS 

(3 890) 

(3 765) 

BUDGET RESULT OF THE YEAR (EU) 

2 519 

3 230 

77