COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS CONSOLIDATED ANNUAL ACCOUNTS OF THE EUROPEAN UNION FOR THE FINANCIAL YEAR 2022
Date: 2023-06-28
Institutions: Directorate-General for Budget, European Commission
Subjects: European Union, balance sheet, closing of accounts, consolidated account, financial situation, general budget (EU), implementation of the budget

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 28.6.2023  COM(2023) 391 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS  CONSOLIDATED ANNUAL ACCOUNTS OF THE EUROPEAN UNION FOR THE FINANCIAL YEAR 2022  
 
 
CONTENTS 

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

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

NOTE ACCOMPANYING THE CONSOLIDATED ACCOUNTS ............................... 36 

CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES ............ 37 

BALANCE SHEET ................................................................................... 39 

STATEMENT OF FINANCIAL PERFORMANCE .............................................. 40 

CASHFLOW STATEMENT ......................................................................... 41 

STATEMENT OF CHANGES IN NET ASSETS ............................................... 42 

NOTES TO THE FINANCIAL STATEMENTS ................................................. 43 

BUDGETARY IMPLEMENTATION REPORTS AND EXPLANATORY NOTES ........... 138 

GLOSSARY ............................................................................................ 203 

LIST OF ABBREVIATIONS ........................................................................ 207 

1 

 
 
 
 
 
 
On  top  of  tackling  the  crisis  with  rapid 
responses  and  ongoing  adjustments  to  the 
political and financial situation, the European 
Union  kept  its  promise  and  delivered  on  its 
overall policy objectives. In 2022, the second 
year of the MFF 2021-2027, it made the best 
use  of  the  2022  budget,  with  commitment 
implementation  amounting  to  357.1  billion 
Euro.  

Thanks  to  the  EU  budget,  the  European 
Union  could  stand  up  to  its  challenges. 
Therefore,  it  is  my  pleasure  to  present  the 
2022 annual accounts of the European Union, 
which  will  illustrate  this  in  detail.  They 
provide  a  complete  overview  of  EU  finances, 
including information on contingent liabilities, 
financial  commitments  and  other  obligations 
of 
the 
the  Union,  as  well  as  on 
implementation of the EU budget for the past 
year.  The  consolidated  annual  accounts  of 
the 
the  European  Union  are  part  of 
Commission’s 
and 
integrated 
accountability reporting package and form an 
essential part of our highly developed system 
of fiscal transparency and accountability.  

financial 

Johannes Hahn 

Commissioner for Budget and Human 
Resources 

FOREWORD 

2022, 

the 
In 
European 
Union 
proved  once  again 
its  power  of  unity 
to 
to 
respond 
unprecedented 
challenges. 
European  solidarity 
was  our  response 
to  Russia's  brutal 
war.  On  one  hand, 
we have stood by our Ukrainian partners and 
sought to mitigate the impact of this unlawful 
and  arbitrary  war,  which  affected  the  daily 
lives  of  millions  of  Ukrainians.  On  the  other 
hand,  we  have  addressed  the  direct  and 
for  our  citizens, 
indirect  consequences 
businesses, and  Member  States. That is why 
we have mobilised all available means in the 
EU  budget  and  under  the  European  Peace 
to  complement  support  directly 
Facility 
provided by the  Member States.   

context, 

our  dedicated 

current  geopolitical 

The 
situation  has 
emphasised  the  importance  of  a  sustainable 
and  diversified  source  of  energy  supply.  In 
this 
recovery 
instrument  NextGenerationEU  proved  to  be 
an  important  tool  to  further  accelerate  the 
green and the digital  transition. At the same 
time, 
been 
instrumental  for  the  growth  of  the  EU  into 
the  large  scale-sovereign  style  issuer.  By 
implementing  unified  EU  borrowing  strategy, 
the Commission sent a very important signal 
to  financial  markets:  it  showed  EU  solidarity 
and  has  generated  confidence 
the 
resilience of the euro area. 

NextGenerationEU 

has 

in 

In  addition,  the  SURE  programme  (Support 
to  Mitigate  Unemployment  Risks 
in  an 
Emergency)  continued  to  support  Member 
States  to  maintain  people  in  work  and  help 
jobs affected by the pandemic. At the end of 
2022,  its  final  year,  Member  States  had 
signed loan facility agreements of 98.4 billion 
Euro,  all  of  which  were  disbursed  supporting 
more  than  30  million  people  and  2.5  million 
companies  across  19  different  Member 
States.  

2 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

FINANCIAL HIGHLIGHTS OF THE YEAR 

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

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

3 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

CONTENTS 

1. 

2. 

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

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

2.1. 

2.2. 

2.3. 

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

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

Financial situation of NGEU at 31 December 2022 .................................... 9 

3. 

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

3.1. 

3.2. 

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

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

4. 

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

4.1. 

4.2. 

4.3. 

4.4. 

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

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

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

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

5. 

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

5.1. 

5.2. 

5.3. 

5.4. 

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

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

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

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

6. 

EU POLITICAL AND FINANCIAL FRAMEWORK, GOVERNANCE AND 
ACCOUNTABILITY .................................................................................... 32 

6.1. 

6.2. 

POLITICAL AND FINANCIAL FRAMEWORK .............................................. 32 

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

4 

 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

1.  KEY FIGURES AND HIGHLIGHTS OF THE YEAR 

Consolidated financial statements 

The consolidated ﬁnancial statements of the EU comprise more than 50 entities (including the European 
Parliament, the Council, the Commission and EU agencies). They are prepared on the basis of accrual-
based accounting rules  adopted by the Accounting  Officer  of  the Commission, these  rules being  based 
on International Public Sector Accounting Standards (IPSAS).  

As  can  be  seen  on  the  balance  sheet  below  and  further  detailed  in  the  Financial  Statements  Analysis 
(section  5),  the 2022  EU consolidated financial  statements  were  particularly marked by an increase  of 
borrowings  due  to  the  continued  implementation  of  NextGenerationEU  and  the  Support  to  mitigate 
Unemployment  Risks  in  an  Emergency  (SURE)  instrument,  as  well  as  the  additional  financial  support 
provided to Ukraine: 

ASSETS 

Financial Assets 

Pre-financing 

Receivables 

Cash and cash equivalents 

Property, Plant and Equipment and other assets 

Total 

LIABILITIES 

Post-employment benefits 

Financial liabilities 

Payables 

Accruals 

Other liabilities 

Total 

NET ASSETS 

Reserves 

Amounts to be called from Member States 

Total 

2022 

235.4 

100.5 

48.2 

46.5 

15.2 

445.9 

80.6 

352.3 

55.3 

86.2 

2.8 

577.2 

1.3 

(132.6) 

(131.3) 

EUR billion 

2021 

188.6 

93.4 

72.4 

44.9 

14.7 

414.1 

122.5 

246.1 

46.4 

78.1 

3.3 

496.4 

1.3 

(83.6) 

(82.3) 

 see Financial Statement Analysis, section 5 

5 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Key developments in 2022 

 Continuing the successful track record of bond issuances 

 Delivering on the NGEU obectives 

   Providing financial assistance to Ukraine 

 see section 4   

 see section 2       

 see section 4  

6 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

2. 

THE 2021-2027 MULTIANNUAL FINANCIAL 
FRAMEWORK AND NextGenerationEU 

2.1.  MFF 2021-27 & NextGenerationEU – Key Figures 

The EU’s 2021-2027 long-term budget, together with the NextGenerationEU (NGEU) recovery instrument, 
amounts to EUR 2.018 trillion in current prices (EUR 1.8 trillion in 2018 prices).  

The  package  consists  of  the  long-term  budget,  the  2021-2027  multiannual  financial  framework  (MFF), 
made  up  of  EUR  1.211  trillion  in  current  prices  (EUR  1.074  trillion  in  2018  prices),  combined  with  the 
temporary  recovery  instrument,  NGEU  of  up  to  EUR  806.9  billion  in  current  prices  (EUR  750  billion  in 
2018 prices). 

The budget has been designed as a response to Europe’s priorities and most urgent needs: 

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

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

budget ever; 

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

invested in digital transformation; 

 

 

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

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

Following  Russia’s  war  of  agression  against  Ukraine,  the  EU  budget  turned  into  a  key  instrument  to 
support  the  EU’s  crisis  response  and  strategic  autonomy  building.  More  concretely,  in  a  ‘Team  Europe’ 
approach, the EU, its Member States and financial institutions, had by the end of 2022 together mobilised 
close to EUR 50 billion in overall support for Ukraine, in a clear expression of the EU’s continued solidarity 
with the people of Ukraine. 

7 

 
 
 
 
 
This included: 

Annual accounts of the European Union 2022 

  EUR 18.9 billion in financial assistance, budget support and humanitarian assistance,  enabled by 

the EU budget and directly from EU Member States in grants, loans and guarantees; 

  An EUR 18 billion package to support Ukraine’s economy, to be paid out in 2023; and 

  EUR 3.2 billion in military assistance under the European Peace Facility and EUR 7 billion directly 
by  the  EU  Member  States  (both  the  European  Peace  Facility  and  the  direct  support  by  Member 
States are not part of the EU budget). 

2.2.  NextGenerationEU – overview  

With a budget of EUR 806.9 billion, NGEU is designed to help repair the immediate economic and social 
damage  brought  about  by  the  coronavirus  pandemic,  thus  building  a  post-COVID-19  Europe  that  is 
greener, more digital, more resilient and better fit for the current and forthcoming challenges. 

A  majority  of  the  funds  is  channeled  through  the  Recovery  and  Resilience  Facility  (RRF).  Part  of  the 
funds, up to EUR 338.0 billion, are provided in the form of non-repayable support, or grants. The other 
part, up to EUR 385.8 billion, is used to provide loans from the Union to individual Member States. These 
loans  will  be  repaid  by  those  Member  States  starting  only  after  the  current  MFF  period  and  extending 
over  a  long  time  period,  with  the  final  maturity  of  the  loans  outstanding  at  31  December  2022  ending 
only as from 2052 (see section 2.3.3). 

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

 

 

 

 

The  Cohesion  policy  under  the  recovery  assistance  for  cohesion  and  the  territories  of  Europe 
(REACT-EU),  to  help  address  the  economic  consequences  of  COVID-19  in  the  first  years  of  the 
recovery; 

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

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

InvestEU, to support the investment efforts of our businesses; 

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

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

largescale emergencies. 

8 

 
Annual accounts of the European Union 2022 

In  addition,  following  Russia’s  war  of  aggression  against  Ukraine  and  the  resulting  energy  crisis,  the 
Commission put forward REPowerEU, the European Commission’s plan to make Europe independent from 
Russian  fossil  fuels  well  before  2030.  Under  REPowerEU,  Member  States  add  a  REPowerEU  chapter  to 
their national Recovery and Resilience Plans (RRPs)  – the roadmaps to funding under the Recovery and 
Resilience Facility – to finance key investments and reforms in diversifying energy supplies and reducing 
dependence on Russian fossil fuels. REPowerEU does not increase the overall envelope for the RRF, but 
will accelerate the deployment of the current borrowing capacity by offering Member States the possibility 
to  request  additional  loans  under  NGEU  for  REPowerEU  objectives.  REPowerEU  is  complemented  by 
grants financed by the auctioning of ETS allowances and transfers from the Brexit Adjustment Reserve. 

2.3.  Financial situation of NGEU at 31 December 2022 

2.3.1.  Overview 

From the launch of the NGEU  funding operations on 15 June 2021 to the end of 2022, the Commission 
has  raised  EUR  170.8  billion  of  long-term  funding  (nominal  amount),  mainly  by  issuing  bonds  in 
syndicated transactions (2021: EUR 71.0 billion). In addition, as of December 2022, the Commission has 
EUR 17.0 billion of short-term EU-Bills outstanding. Up to year-end 2022, the Commission had disbursed 
a  total  of  EUR  162.0  billion  of  financial  support  (2021:  EUR  71.6  billion).  The  majority  of  this  amount, 
EUR  138.7  billion,  was  disbursed  under  the  RRF,  with  EUR  93.5  billion  disbursed  as  non-repayable 
support  and  EUR  45.2  billion  disbursed  as  financial  loan  support.  A  further  EUR  23.3  billion  (net  of 
recoveries of EUR 0.2 billion) was disbursed as MFF payments under existing programmes. Furthermore, 
liquidity  of  EUR  20.5  billion  is  held  in  the  NGEU  bank  account  with  the  ECB  and  in  the  Commission’s 
central treasury account, pending disbursement to the budget for MFF programmes. 

9 

 
 
 
 
NGEU – Outstanding Borrowings and Disbursements at 31 December 2022 

Annual accounts of the European Union 2022 

* A  further  EUR  0.6  billion  of funds  were  held  in  the  Commission’s  central  treasury  account  pending  disbursement  to 
the budget for MFF programmes (including EUR 0.2 billion of recovered NGEU funds previously paid). 

2.3.2.  Borrowings 

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

In  2022,  the  annual  Borrowing  Decision  allowed  the  Commission  to  issue  up  to  a  maximum  amount  of 
EUR 140 billion in long-term funding and to have up to a maximum outstanding amount of EUR 60 billion 
in short-term funding.1 

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

As of 31 December 2022, the outstanding (nominal) amount of long-term funding was EUR 170.8 billion 
(2021:  EUR  71.0  billion).  Out  of  this  amount,  EUR  36.4  billion  related  to  green  bonds  (2021:  EUR  12 
billion). The borrowings will mature between 2025 and 2052 as follows: 

1  Commission Implementing Decision C(2021) 9336 final. 

10 

 
 
 
 
                                                 
Annual accounts of the European Union 2022 

Maturity 

Issued/Raised 

Total repaid at year-end  Outstanding at year-end 

EUR billion 

2025 

2026 

2027 

2028 

2029 

2031 

2032 

2033 

2037 

2041 

2042 

2043 

2048 

2051 

2052 

11.2 

18.9 

9.3 

14.0 

10.0 

20.0 

14.9 

6.0 

18.4 

13.0 

4.0 

7.0 

5.0 

14.0 

5.0 

170.8 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

11.2 

18.9 

9.3 

14.0 

10.0 

20.0 

14.9 

6.0 

18.4 

13.0 

4.0 

7.0 

5.0 

14.0 

5.0 

170.8 

Short-term funding – Auctioning of EU-Bills 

The  auctioning  of  EU-Bills  gives  extra  flexibility  to  the  Commission  as  an  issuer,  and  is  supporting  the 
liquidity  of  its  securities.  As  of  31  December  2022,  the  outstanding  (nominal)  amount  of  short-term 
funding,  raised  via  the  auctioning  of  EU-bills  with  a  maturity  of  three  or  six  months,  amounted  to  EUR 
17.0 billion (2021: EUR 20.0 billion). 

2.3.3.  Disbursements 

During  2022  the  Commission  positively  assessed  the  five  remaining  Member  States’  recovery  and 
resilience  plans  (Bulgaria,  Hungary,  Netherlands,  Poland  and  Sweden),  which  were  subsequently 
approved  by  the  Council.  As  a  consequence,  all  27  Member  States’  recovery  and  resilience  plans  were 
endorsed  by  year-end  2022.  The  total  non-repayable  support  approved  under  the  27  Member  States’ 
plans  amounted  to  EUR  335.1  billion  (2021:  EUR  291.2  billion),  corresponding  to  almost  the  whole 
financial envelope of NGEU non-repayable support of EUR 338.0 billion2. Out of this amount, EUR 234.4 
billion were covered by financing agreements signed with Member States (2021: EUR 195.4 billion). The 
total financial loan support approved under the plans amounted to EUR 165.3 billion (2021: EUR 153.9 
billion), of which the loan  agreements signed  by  year-end covered EUR 153.9 billion  (2021:  EUR 153.2 
billion). 

Non-repayable support 

By year-end 2022, the Commission had disbursed a total of EUR 93.5 billion of non-repayable support to 
22 Member States  (2021: EUR 46.4 billion to 20  Member States).  Out of this amount, EUR 36.6  billion 
related to pre-financing (2021: EUR 36.4 billion) and EUR 56.9 billion related to payments made following 
the fulfilment of milestones and targets by Member States (2021: EUR 10.0 billion): 

2  Maximum financial contribution calculated for each Member State following the update of 30 June 2022 in line with 

Article 11(2) of Regulation (EU) 2021/241 (before deduction of support expenditure), see 
https://commission.europa.eu/document/c22c182c-f53e-453f-b45a-dacdcf2d69dd_en. 

11 

 
 
 
 
 
 
 
                                                 
Annual accounts of the European Union 2022 

Maximum 
non-repayable 
support* 
3.8 

Signed 
commitments 
and budgetary 
commitments 
 31.12.2022† 
2.2 

Disbursed as 
pre-financing 
 31.12.2022 
0.4 

Milestone 
payments 
31.12.2022 
- 

Total  
disbursed at 
31.12.2022 
0.4 

EUR billion 

4.5 

5.7 

5.5 

0.9 

7.7 

1.4 

0.9 

1.8 

37.5 

28.0 

17.4 

5.8 

0.9 

69.0 

1.8 

2.1 

0.1 

0.3 

4.7 

22.5 

15.5 

12.1 

6.0 

1.5 

77.2 

3.2 

3.6 

4.6 

4.6 

0.8 

3.5 

1.3 

0.8 

1.7 

24.3 

16.3 

13.5 

4.6 

0.9 

47.9 

1.6 

2.1 

0.1 

0.2 

3.9 

20.3 

9.8 

10.2 

4.6 

1.3 

46.6 

2.9 

0.8 

- 

0.8 

0.1 

0.9 

0.2 

0.1 

0.3 

5.1 

2.3 

2.3 

- 

- 

9.0 

0.2 

0.3 

0.0 

0.0 

- 

- 

1.8 

1.9 

0.8 

0.2 

9.0 

- 

- 

1.4 

1.4 

0.1 

- 

- 

- 

- 

7.4 

- 

1.7 

- 

- 

20.0 

0.2 

- 

- 

- 

- 

- 

0.6 

1.8 

0.4 

- 

22.0 

- 

0.8 

1.4 

2.2 

0.2 

0.9 

0.2 

0.1 

0.3 

12.5 

2.3 

4.0 

- 

- 

29.0 

0.4 

0.3 

0.0 

0.0 

- 

- 

2.4 

3.6 

1.2 

0.2 

31.0 

- 

Member 
State 
Austria 

Belgium 

Bulgaria 

Croatia 

Cyprus 

Czechia 

Denmark 

Estonia 

Finland 

France 

Germany 

Greece 

Hungary 

Ireland 

Italy 

Latvia 

Lithuania 

Luxembourg 

Malta 

Netherlands 

Poland 

Portugal 

Romania 

Slovakia 

Slovenia 

Spain 

Sweden 

Total 
93.5 
* Maximum financial contribution calculated for each Member State following the update of 30 June 2022 in line with 

234.4 

338.0 

36.6 

56.9 

Article 11(2) of Regulation (EU) 2021/241 (before deduction of support expenditure), see 
https://commission.europa.eu/document/c22c182c-f53e-453f-b45a-dacdcf2d69dd_en. 

† Budgetary commitments take into account all decommitments including those related to commitments made 

before 2022. Out of the total budgetary commitments EUR 136.4 billion was committed in 2022. 

During  2022  the  Commission  disbursed  non-repayable  support  totalling  EUR  47.2  billion.  This  amount 
mainly comprised the first milestone payment to France (EUR 7.4 billion), the first and second milestone 
payments to Italy (EUR 10.0 billion each), and the second milestone payment to Spain (EUR 12.0 billion). 

Loans 

By  year-end  2022,  the  Commission  had  disbursed  EUR  45.2  billion  of  financial  loan  support  to  five 
Member  States  (2021:  EUR  18.0  billion  to  four  Member  States).  Out  of  this  amount,  EUR  19.9  billion 
related to pre-financing (2021: EUR 18.0  billion) and EUR  25.2 billion related to loan instalments made 
following the fulfilment of milestones and targets by Member States (2021: nil): 

12 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Maximum 
financial loan 
support 
0.2 

Total  
signed at 
31.12.2022 
0.2 

 Disbursed as 
pre-financing 
 31.12.2022 
0.0 

Milestone 
payments 
31.12.2022 
- 

EUR billion 
Total 
outstanding at 
31.12.2022 
0.0 

12.7 

122.6 

2.7 

14.9 

11.5 

0.7 

165.3 

220.5 

385.8 

12.7 

122.6 

2.7 

14.9 

0.0 

0.7 

153.9 

- 

153.9 

1.7 

15.9 

0.4 

1.9 

- 

- 

19.9 

- 

19.9 

1.8 

22.0 

0.6 

0.8 

- 

- 

25.2 

- 

25.2 

3.5 

37.9 

1.0 

2.7 

- 

- 

45.2 

- 

45.2 

Member State 
Cyprus 

Greece 

Italy 

Portugal 

Romania 

Poland 

Slovenia 

Approved 

Reserve 

During  2022  the  Commission  provided  financial  loan  support  totalling  EUR  27.2  billion.  This  amount 
comprised the loan pre-financing of EUR 1.9 billion to Romania, the payment of the first loan instalments 
to  Greece  (EUR  1.8  billion),  Italy  (EUR  11.0  billion),  Portugal  (EUR  0.6  billion)  and  Romania  (EUR  0.8 
billion), as well as the payment of the second loan instalment to Italy (EUR 11.0 billion). 

According to the loan agreements, Member States will make annual repayments of 5% of the disbursed 
amounts  starting  ten  years  after  the  disbursement  date.  Thus  Cyprus,  Greece,  Italy  and  Portugal  will 
start  repaying  the  loans  as  from  2032  and  Romania  as  from  2033.  The  repayment  schedule  for  the 
nominal amounts outstanding at year-end is as follows: 

Member State 
Cyprus 

Greece 

Italy 

Portugal 

Romania 

Repayment 
period 
2032-2051 

2032-2052 

2032-2052 

2032-2052 

2033-2052 

Annual 
repayment 
1 

175 

1 897 

48 

137 

2 258 

EUR million 
Total 
repayment 
26 

3 500 

37 938 

960 

2 732 

45 156 

NGEU contribution to other programmes under the EU budget 

By year-end 2022, the total  net payments disbursed to other  programmes under  the  MFF amounted to 
EUR 23.3 billion (2021: EUR 7.2 billion). This contribution, which is net of recoveries of EUR 0.2 billion, 
mainly  related  to  REACT-EU  which  finances  the  European  Regional  Development  Fund  (ERDF)  and  the 
European Social Fund (ESF, including FEAD): 

MFF-Programme 

REACT-EU 

- of which ERDF 

- of which ESF (incl. FEAD) 

Just Transition Fund 

Rural Development 
(EAFRD) 
InvestEU 

Horizon Europe 

RescEU 

Total 

Total 
allocation 

50.6 

30.0 

20.6 

10.9 

8.1 

6.1 

5.4 

2.0 

83.1 

Total  
net commitments  
31.12.2022† 
50.5 

EUR billion 
Total 
net payments 
31.12.2022 
18.2 

29.9 

20.6 

5.0 

8.1 

3.6 

3.5 

0.9 

71.6 

13.6 

4.6 

0.2 

1.3 

1.4 

1.9 

0.3 

23.3 

During  2022,  the  Commission  disbursed  payments  to  other  MFF  programmes totalling  EUR  16.1  billion. 
This  amount  comprised  mainly  the  payments  relating  to  REACT-EU  (EUR  11.2  billion,  of  which  EUR  8.7 
billion  under  the  ERDF  and  EUR  2.5  billion  under  the  ESF,  including  FEAD),  Horizon  Europe  (EUR  1.9 
billion), InvestEU (EUR 1.2 billion) as well as Rural Development (EUR 1.2 billion). 

13 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.3.4. 

Liquidity 

Annual accounts of the European Union 2022 

Loans  provided  under  NGEU  do  not  follow  the  strict  back-to-back  principle  used  in  the  past.  Instead,  a 
diversified  and  pooled  funding  strategy  has  been  developed  for  the  NGEU  that  has  required  the 
implementation of an efficient liquidity management. The objective of the NGEU liquidity management is 
to  ensure  that  the  amounts  held  on  the  NGEU  bank  account  are  sufficient  to  meet  all  upcoming 
disbursement needs and to maintain a defined safety buffer, while avoiding any excess balances. For the 
liquidity  management,  the  Commission  has  developed  an  IT  tool  that  allows  for  the  monitoring  of  the 
NGEU  account  on  a  daily  basis.  At  year-end  2022  the  funds  held  in  the  NGEU  off-budget  account 
amounted to EUR 19.9 billion. In addition, EUR 0.6 billion of funds were held in the Commission’s central 
treasury account pending  disbursement to the budget for MFF-programmes (including EUR 0.2 billion of 
recovered NGEU funds previously paid). 

Following  the  success  of  the  diversified  funding  strategy  for  NGEU  and  the  growing  recurrence  to 
borrowing to secure funding  for  EU  policy priorities, the Commission decided in 2022 to start using the 
unified funding approach as a main funding method as of 2023. Under this approach, the Commission – 
on behalf of the EU – will henceforth issue only ‘EU-Bonds’ rather than separately denominated bonds for 
individual  programmes.  The  NGEU  recovery  programme  and  the  new  Macro-Financial  Assistance + 
programme  for  Ukraine  of  EUR  18  billion  for  2023  are  the  first  programmes  to  benefit  from  the  new 
funding approach. 

14 

 
 
 
Annual accounts of the European Union 2022 

3. 

SUMMARY OF BUDGET IMPLEMENTATION  

3.1.  Revenue 

In the initial adopted EU budget, total payment appropriations amounted to EUR 170 603 million and the 
amount  to  be  financed  by  own  resources  totalled  EUR 157 701 million.  The  revenue  and  expenditure 
estimates  in  the  initial  budget  are  typically  adjusted  during  the  budgetary  year  by  way  of  amending 
budgets.  Adjustments  in  the  GNI-based  own  resources  ensure  that  budgeted  revenue  matches  exactly 
budgeted expenditure. In  accordance  with the principle of equilibrium, budget revenue and expenditure 
(payment appropriations) must be in balance. 

During 2022, five amending budgets were adopted. Taking them into account, the final adopted revenue 
for 2022 amounted to EUR 170 038 million and the total amount financed by own resources amounted to 
EUR 153 928 million.  Member  States'  contributions  in  2022  were  mainly  reduced  by  the  surplus  of  the 
previous year (EUR 3 227 million). The level of payment appropiations remained more or less in line with 
the initial voted budget. 

Revenue comes from six sources (titles): 

Title 1 : Own resources 

The collection of traditional own resources was above the amounts forecasted in the budget. This was due 
mainly to a higher than expected collection in the last months of the year. 

Member  States'  final  VAT,  GNI  and  Plastics  payments  corresponded  closely  to  the  final  budgetary 
estimate. The differences between the forecasted amounts and the amounts actually paid are due to the 
differences  between  the  euro  rates  used  for  drawing  up  the  budget  and  the  rates  in  force  at  the  time 
when the Member States outside the euro area actually made their payments. 

Title 2 : Surpluses, balances and adjustments 

The surplus of the previous financial year amounted to EUR 3 227 million. This amount was inscribed in 
the  budget  2022  through  an  amending  budget  and  the  own  resources  contributions  from  the  Member 
States were reduced accordingly.  

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

Title 3 : Administrative revenue 

This title comprises mainly revenue from taxes and levies on the remuneration of staff. 

Title 4 : Financial revenue, default interest and fines 

The main part of this title relates to the fines in connection with the implementation of competition rules. 

Title 5 : Budgetary guarantees, borrowing and lending operations 

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

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

This title  concerns mainly  revenue from financial  corrections  related to structural and agricultural  funds 
(ESIF, EAGF and EAFRD). It also includes the participation of third countries in research programmes, the 
clearance  of  accounts  in  agricultural  funds  and  other  contributions  and  refunds  to  EU  programmes/ 

15 

 
Annual accounts of the European Union 2022 

activities.  A  substantial  part  of  this  total  is  made  up  of  earmarked  revenue,  which  gives  rise  to  the 
entering of additional appropriations on the expenditure side.  

Total 2022 budget revenue amounted to EUR 245 265 million: 

3.2.  Expenditure 

3.2.1.  Budget implementation 

In 2022, the second year of the MFF 2021-2027, the final adopted budget amounted to EUR 182.2 billion 
of  commitment  appropriations  and  EUR 170.0 billion  of  payment  appropriations.  In  addition, 
EUR 295.0 billion  of  commitment  appropriations  were  available  as  assigned  revenue,  out  of  which 
EUR 277.8 billion  related  to  the  NGEU3,  and  EUR 4.5 billion  of  commitment  appropriations  were  carried 
over  from  2021.  The  payment  appropriations  related  to  2022  assigned  revenue  amounted  to 
EUR 87.0 billion,  out  of  which  EUR 64.3 billion  related  to  the  NGEU  and  EUR 4.3  billion  of  payment 
appropriations were carried over from 2021. 

The  implementation  of  the  2022  budget  was  still  partly  impacted  by  the  late  adoption  of  the  MFF 
Regulation  (December  2020),  which  led  to  the  adoption  of  the  legal  acts  of  the  new  generation  of 
programmes only in the course of 2021. Moreover, the implementation of the 2022 budget was heavily 
affected by the invasion of Ukraine by Russia and the need to take resolute actions to provide complex 
humanitarian  and  financial  support  to  Ukraine,  help  refugees  as  well  as  countries  hosting  them,  and  to 
respond to a crisis that had consequences beyond Ukrainian borders. 

The implementation of the total commitment appropriations in 2022 amounted to EUR 357.1 billion: 

 

EUR 179.4 billion from the final adopted budget; 

  EUR 4.5 billion from appropriations carried-over or made available again from 2021; 

  EUR 173.2 billion from appropriations stemming from assigned revenue; 

o  of which EUR 162.7 billion from NGEU. 

The implementation of the total payment appropriations in 2022 amounted to EUR 243.3 billion: 

  EUR 167.3 billion from the final adopted budget; 

  EUR 4.2 billion from appropriations carried-over or made available again from 2021; 

  EUR 71.8 billion from appropriations stemming from assigned revenue; 

o  of which EUR 63.5 billion from NGEU. 

3 For a comprehensive overview of the NextGenerationEU (NGEU), please see also sections 2.2 and 2.3 above. 

16 

 
 
                                                 
Annual accounts of the European Union 2022 

In cases allowed by the Financial Regulation and/or  legal bases, the appropriations of the voted budget 
that  were  not  implemented  in  2022  were  carried  over  to  2023:  EUR 1.5 billion  of  commitment 
appropriations and EUR 2.5 billion of payment appropriations. 

Likewise, EUR 121.5 billion of commitment appropriations of assigned revenue, of which EUR 115.1 billion 
related to the NGEU, and EUR 15.2 billion of payment appropriations of assigned revenue, of which EUR 
0.8 billion related to the NGEU, were carried over to 2023 in accordance with the Financial Regulation. 

Total 2022 commitment appropriations implementation per EU policy objectives were as shown below: 

The  2022  implementation  for  all  types  of  appropriations  (budget,  carry-overs  from  previous  year  and 
assigned revenue) was 74% for commitments and 93% for payments. Implementation rates including the 
appropriations  carried  over  to  2023  (in  accordance  with  the  Financial  Regulation  and/or  legal  bases) 
reached 99% for commitment appropriations and 100% for payment appropriations of the voted budget 
for 2022. 

In 2022, the annual tranche of commitments under NGEU4 was EUR 144.6 billion. In addition, EUR 21.1 
billion  of  commitments  were  carried  over  from  2021.  In  total,  EUR  165.7  billion  was  available  for 
commitments in 2022, out of which 162.7 billion, or 98%, were consumed. The remaining EUR 114 billion 
of the NGEU total envelope are planned for implementation in 2023 (and in later years for administrative 
appropriations  which  can  be  implemented  until  2027).  In  line  with  art.  3(4)  of  EURI  Regulation5 
2020/2094,  over  60%  of  legal  commitments  for  the  relevant  programmes  under  NGEU  (with  the 
exception  of  InvestEU  and  Recovery  and  Resilience  Facility  (RRF)  loans)  were  entered  into  by  31 
December 2022. The implementation of the NGEU payment appropriations reached 99%. 

4  The  authorised  amount  for  NGEU  in  2022  concerned  the  2022  support  in  the  form  of  non-repayable  support  to 
Member  States  under  the  Recovery  and  Resilience  Facility  (RRF),  the  Recovery  Assistance  for  Cohesion  and  the 
Territories  of  Europe  (REACT-EU)  and  the  additional  funding  for  other  European  programmes  or  funds  (i.e.  Rural 
Development,  InvestEU  Fund,  Just  Transition  Fund,  Horizon  Europe  and  RescEU).  The  EURI  Regulation  sets  legal 
deadlines  with  respect  to  the  legal  commitments  while  the  programming  distribution  is  established  based  on  the 
planned  schedule  of  annual  commitments  which  are  specifically  mentioned  in  the  legal  bases  of  the  programmes 
concerned. 

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

(EURI) to support the recovery in the aftermath of the COVID-19 crisis. 

17 

 
 
 
 
 
                                                 
3.2.2.  Outstanding commitments 

Annual accounts of the European Union 2022 

Outstanding  commitments  (commonly  referred  to  as  RAL  –  reste  à  liquider),  which  correspond  to 
amounts committed but not yet paid for, stood at EUR 452.8 billion at the end of 2022. The outstanding 
commitments increased as compared to 2021 (by EUR 111.2 billion).  

The  main  driver  of  the  2022  increase  of  the  RAL  was  the  NGEU  (non-repayable  part)  implementation, 
contributing EUR 189.1 billion (42%) to the total RAL at the end of 2022. As the NGEU appropriations will 
be committed until  31 December 2023 and paid by 31 December 2026,  in accordance  with the  Articles 
3(4) and 3(9) of the EURI Regulation, the trend of nominally growing RAL linked to NGEU will continue in 
2023. 

3.2.3.  Budget result 

The budget result (surplus) decreased  from  EUR 3.2 billion  in 2021 to EUR 2.5  billion in  2022.  A  major 
contributor  to  the  budget  result  (surplus)  2022  was  higher  than  expected  revenue  from  the  customs 
duties. 

18 

 
 
 
 
 
Annual accounts of the European Union 2022 

4. 

FINANCIAL INSTRUMENTS AND BUDGETARY 
GUARANTEES 

4.1.  Financial instruments financed by the EU budget 

Financial  instruments  financed  by  the  EU  budget  exist  in  the  form  of  guarantee  instruments,  equity 
instruments  and  loan  instruments.  Under  the  2021-2027  MFF  the  use  of  budgetary  guarantees  is 
expected to increase in comparison to the use of financial instruments fully financed or provisioned from 
the EU budget. In particular, under the  InvestEU Programme, EUR 26.2 billion of EU guarantees will be 
provided to the EIB group and other financial institutions to support various policy objectives of the Union 
by means of financing investment operations. The basic concept behind this approach, in contrast to the 
traditional method of budget implementation of giving grants and subsidies, is that  for each euro spent 
from  the  budget  via  financial  instruments,  the  final  beneficiary  receives  more  than  EUR 1  as  financial 
support due to the leverage effect. 

Under  this  type  of  budget  implementation,  funds  are  either  already  disbursed  to  the  fiduciary  accounts 
managed  by  the  entrusted  entities  and  stay  available  (as  cash  and  cash  equivalents,  debt  securities or 
investments in money market funds or pooled portfolios of assets) to cover future guarantee calls or have 
been invested in equity. The significance and volume of financial instruments financed by the EU budget 
under direct and indirect management has been increasing in recent years.  

4.2.  Budgetary guarantees: Financial assets held in 

guarantee funds 

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

As of 2021, the provisioning  is held in the  Common Provisioning  Fund  (CPF).  The CPF is established by 
the  Financial  Regulation6  to  hold  the  provisioning  made  (i.e.  funds  held)  to  cover  financial  liabilities 
arising  from  financial  instruments,  budgetary  guarantees  and  financial  assistance  loans  as  of  the  2021-
2027 MFF. It also includes some assets of provisioning for financial liabilities from previous MFFs. 

The  CPF  is  created  and  functions  as  a  single  portfolio,  currently  combining  provisioning  for  all  the  EU 
budgetary guarantees and some financial assistance programmes. The resources of the CPF are allocated 
into  compartments  for  the  purpose  of  tracing  the  amounts  relating  to  the  contributing  budgetary 
guarantees and financial assistance programmes. 

At 31 December 2022, the Commission holds financial assets in the CPF for the following compartments: 

  Guarantee Fund for external actions – EUR 2.5 billion 

 

 

EFSI – EUR 8.5 billion 

EFSD – EUR 0.7 billion 

  NDICI EFSD+ – EUR 1.1 billion 

 

 

 

 

InvestEU EU compartment – EUR 1.7 billion 

InvestEU MS compartment Czech Republic – 14 million 

InvestEU MS compartment Finland – 18 million 

InvestEU Blending Operations – 18 million. 

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

July 2018. 

19 

 
                                                 
Annual accounts of the European Union 2022 

In addition, EUR 342 million is held in the Commission central treasury as a liquidity buffer to cover for 
immediate guarantee calls. 

4.3.  Loans and related borrowings for financial assistance 

programmes 

The EU borrowing and lending activities for financial assistance programmes are non-budget operations. 
Except for the NGEU, funds raised are on-lent to the beneficiary country, back-to-back i.e. with the same 
coupon,  maturity  and  amount.  As  a  result,  the  EU  services  the  borrowings  with  the  money  it  receives  
from  the  loans.  Nevertheless,  the  service  of  the  borrowings  is  a  legal  obligation  of  the  EU,  which  will 
ensure that all payments are made fully and in a timely manner. The Commission has put procedures in 
place to ensure the repayment of borrowings even in case of a loan default. 

The financial support for Member States and third countries, in the form of bilateral loans financed from 
the capital markets with the guarantee of the EU budget, is provided by the Commission under decisions 
of  the  European  Parliament  and  of  the  Council.  In  2022  the  Commission,  acting  on  behalf  of  the  EU, 
operates six main programmes under which it may grant loans: 

  SURE assistance; 

  European Financial Stabilisation Mechanism (EFSM) assistance; 

  Macro-Financial Assistance (MFA); 

  Balance of Payments (BOP) assistance; 

  Euratom; and 

  NGEU – for further information see section 2 above. 

20 

 
 
 
Annual accounts of the European Union 2022 

At 31 December 2022, the nominal amount of the loans granted for financial assistance, excluding NGEU 
(see section 2), were: 

Total granted 

Total disbursed 
at year-end 

Total repaid at 
year-end 

EUR billion 
Outstanding at 
year-end 

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

EFSM 
Ireland 
Portugal 

MFA 
Ukraine 
Tunisia 
Jordan 
Other 

BOP 
Latvia 

EURATOM 
Energoatom and 
K2R4 – Ukraine 
Other 

Total 

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

- 
(0.5) 
(0.5) 

(0.6) 
- 
- 
(0.2) 
(0.8) 

(2.7) 
(2.7) 

(0.1) 

(0.4) 
(0.5) 
(4.5) 

8.2 
1.0 
1.6 
0.6 
4.5 
0.2 
6.2 
0.7 
2.5 
27.4 
0.5 
1.1 
0.4 
11.2 
6.2 
3.0 
0.6 
1.1 
21.3 
98.4 

22.5 
23.8 
46.3 

11.6 
1.4 
0.9 
1.1 
15.0 

0.2 
0.2 

0.3 

- 
0.3 
160.2 

8.2 
1.0 
1.6 
0.6 
4.5 
0.2 
6.2 
0.7 
2.5 
27.4 
0.5 
1.1 
0.4 
11.2 
6.2 
3.0 
0.6 
1.1 
21.3 
98.4 

22.5 
24.3  
46.8 

12.2 
1.4 
1.1 
1.4 
16.1 

2.9 
2.9 

0.4 

0.4 
0.8 
165.0 

8.2 
1.0 
1.6 
0.6 
4.5 
0.2 
6.2 
0.7 
2.5 
27.4 
0.5 
1.1 
0.4 
11.2 
6.2 
3.0 
0.6 
1.1 
21.3 
98.4 

22.5 
24.3 
46.8 

12.2 
1.4 
0.9 
1.3 
15.8 

2.9 
2.9 

0.4 

0.4 
0.8 
164.7 

21 

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

Annual accounts of the European Union 2022 

SURE 

EFSM 

MFA 

BOP 

EURATOM 

EUR billion 

TOTAL 

2023 
2024 
2025 
2026 
2027 
2028 
2029 
2030 
2031 
2032 
2033 
2034 
2035 
2036 
2037 
2038 
2039 
2040 
2041 
2042 
2043 
2044 
2045 
2046 
2047 
2048 
2049 
2050 
2051 
2052 
2053 

 -  
 -  
 8.0   
 8.0   
 -  
 10.0   
 8.2   
 10.0   
 -  
 -  
 -  
 -     

 8.5   
 9.0   
 8.7     
- 
- 
 7.0   

- 
- 
- 
- 
 5.0   
 6.0   
- 
- 
10.0 
- 
- 
 -  

 3.5   
 2.6   
 2.4   
 6.2   
 3.0   
 2.3   
 1.4   
 -  
 7.3   
 3.0   
 2.1   
 -  
 2.0   
 5.7   

 -     

 1.8   
- 
- 
- 
 3.0   
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 

 0.1   
 0.6   
 -  
 0.1   
 0.2   
 0.2   
 0.9   
 0.1   
 1.2   
 0.7   
 0.5   
 0.7   
 2.0   
 1.3   
0.9 
- 
- 
0.5 
- 
2.0 
- 
- 
- 
- 
- 
- 
- 
- 
- 
0.5 
2.5 

- 
- 
0.2 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 

- 
- 
- 
- 
0.1 
0.1 
- 
0.1 
0.1 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 

3.6   
3.2   
10.6   
14.3   
3.3   
12.6   
10.4   
10.2   
8.6   
3.7   
2.6   
0.7   
12.5   
16.0   
9.6   
1.8   

7.5   

5.0   

5.0   
6.0   

10.0   

0.5  
2.5 

Total 

98.4 

46.3 

15.0 

0.2 

0.3 

160.2 

SURE 

SURE was established in 2020 to provide financial assistance to Member States who are experiencing, or 
are seriously threatened with, a severe economic disturbance caused by the COVID-19 pandemic in their 
territory.  The  instrument  complements  the  national  measures  taken  by  affected  Member  States.  The 
maximum amount of financial assistance shall not exceed EUR 100 billion for all Member States.  

At the end of 2022, Member States had signed loan facility agreements of EUR 98.4 billion, all disbursed 
by year-end 2022. In 2022, the Commission disbursed new loans of EUR 8.7 billion. The maturity of loans 
varies between 5 and 30 years. 

EFSM 

EFSM  was  created  to  provide  financial  assistance  to  all  Member  States  experiencing  or  seriously 
threatened  by  a  severe  economic  financial  disturbance  caused  by  exceptional  occurrences  beyond  their 
control. The EFSM was used to provide financial assistance, conditional on the implementation of reforms, 
to Ireland and Portugal between 2011 and 2014. This programme has expired and no additional loans can 
be drawn, though it remains in place for specific tasks such as the lengthening of maturities  of existing 
loans and providing bridging loans. In 2022, loans of EUR 2.2 billion to Portugal, maturing in April 2022, 
were extended by 4.5 years, whilst EUR 0.5 billion were repaid. 

22 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
                        
 
 
MFA 

Annual accounts of the European Union 2022 

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

Ukraine 

In  2022  the  European  Parliament  and  the  Council  agreed  three  packages  of  financial  assistance  for 
Ukraine7,  totalling  EUR  7.2  billion,  to  strengthen  the  immediate  resilience  of  the  country  subsequent  to 
Russia’s unprovoked and unjustified war of aggression. All the loans have been disbursed to Ukraine by 
the end of 2022. The maturity of these new loans to Ukraine varies between 10 to 30 years.  

At  the  end  of  2022  the  total  MFA  loans  outstanding  to  Ukraine  amounted  to  EUR  11.6  billion  (nominal 
amount).  

To continue the EU support for Ukraine in 2023, a new package of financial assistance of EUR 18 billion 
was  adopted  by  the  European  Parliament  and  the  Council  on  14  December  2022  (Regulation  (EU) 
2022/2463).  The  Commission  and  Ukraine  signed  a  Memorandum  of  Understanding  and  a  Loan  Facility 
Agreement  in  early  2023  and  EUR  7.5  billion  of  loans  has  been  disbursed  by  31  May  2023.  The 
Commission plans to disburse the remaining amount by the end of 2023 in monthly tranches of EUR 1.5 
billion. 

BOP 

The  BOP  is  an  assistance  programme  designed  for  Member  States  outside  the  euro  area  that  are 
experiencing or are threatened by difficulties regarding their balance of payments. BOP assistance takes 
the  form  of  medium-term  loans  that  are  conditional  on  the  implementation  of  policies  designed  to 
address  underlying  economic  problems.  Typically,  BOP  assistance  from  the  EU  is  offered  in  cooperation 
with  the  IMF  and  other  international  institutions  or  countries.  No  new  operations  or  loan  repayments 
occurred in 2022. 

Euratom 

The  European  Atomic  Energy  Community  (Euratom,  represented  by  the  Commission)  lends  money  to 
both  Member  States  and  non-Member  States,  and  to  entities  of  both,  to  finance  projects  relating  to 
energy installations. 

4.4.  Budgetary contingent liabilities for financial assistance 

programmes 

Borrowings of the EU constitute direct and unconditional obligations of the EU and are guaranteed by the 
EU  Member  States  (budgetary  contingent  liabilities).  Borrowings  undertaken  to  fund  loans  to  countries 
outside the EU are covered by the CPF. Should a beneficiary Member State default, the debt service will 
be drawn from the available treasury balance of the Commission, if possible. If that is not possible at that 
time, the Commission would draw the necessary funds from the Member States. EU Member States are 
legally  obliged,  according  to  the  EU  own  resources  legislation  (Article  14  of  Council  Regulation  (EU, 
Euratom) No 609/2014), to make available sufficient funds to meet the EU’s obligations. Thus investors 
are only exposed to the credit risk of the EU, not to that of the beneficiary of loans funded. ‘Back-to-back’ 
lending ensures that the EU budget does not assume any interest rate or foreign exchange risk.  

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

7  Decision  (EU)  2022/313  of  the  European  Parliament  and  the  Council  for  EUR  1.2  billion  providing  emergency 
assistance  to  Ukraine,  Decision  (EU)  2022/1201  of  the  European  Parliament  and  the  Council  for  EUR  1.0  billion 
providing  exceptional  assistance  to  Ukraine,  Decision  (EU)  2022/1628  of  the  European  Parliament  and  the  Council 
for EUR 5.0 billion providing exceptional assistance to Ukraine. 

23 

 
                                                 
Annual accounts of the European Union 2022 

EUR  6  billion  of  loans  provided  to  Ukraine  in  2022  under  the  exceptional  MFA  financial  assistance,  are 
covered by a system  of guarantees from  Member States  for  61% of  the exposure,  with  the  first 9% of 
any  losses  to  be  covered  by  the  EU  budget  (CPF).  See  note  2.4.1.1  in  the  consolidated  EU  annual 
accounts. 

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

24 

 
 
Annual accounts of the European Union 2022 

5. 

FINANCIAL STATEMENTS ANALYSIS 

5.1.  REVENUE 

The  consolidated  revenue  of  the  EU  incorporates  amounts  related  to  exchange  transactions  and  non-
exchange  transactions,  the  latter  being  the  most  significant.  The  five-year  trend  of  the  main  non-
exchange revenue categories (comprising GNI  resources, Traditional own  resources, VAT resources,  the 
new Plastics own resources, Fines and Recovery of expenses) is as follows: 

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

*2020 to 2022 figures: excluding revenue relating to the UK’s withdrawal from the EU 

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

Consolidated revenue – main developments in 2022 

In  2022,  the  consolidated  revenue,  comprising  all  revenue  categories,  amounted  to  EUR  171.2  billion, 
compared to EUR 178.9 billion the previous year. The main developments explaining the decrease of EUR 
7.7 billion or 4.3% were:  

 

Traditional  own  resources  increased  from  EUR  20.6  billion  in  2021  to  EUR  23.5  billion  in  2022. 
The increase of 2.9 billion or 14.1% is mainly explained by the recent economic recovery; 

  VAT contributions have increased from EUR 18.3 billion in 2021 to EUR 19.7 billion in 2022;  

  Revenue from GNI (gross national income), the primary element of the EU’s operating revenue, 
decreased from EUR 116.0 billion in 2021 to EUR 103.9 billion in 2022. The decrease of EUR 12.1 
billion  or  10.4%  is  linked  to  the  increase  of  the  other  revenue  categories,  as  the  revenue  from 
GNI funds the part of the budget which is not covered by other sources of income; and 

 

Financial revenue decreased by EUR 2.5 billion mainly due to a decrease in accrued late payment 
interest for custom cases. 

25 

 
 
 
Annual accounts of the European Union 2022 

5.2.  EXPENSES 

The main component of expenses recognised in the consolidated financial statements are expenses under 
the shared management  mode,  which  includes the  following funds: (i)  European Agricultural Guarantee 
Fund  (EAGF),  (ii)  European  Agricultural  Fund  for  Rural  Development  (EAFRD)  and  other  rural 
development instruments, (iii) European Regional Development Fund (ERDF) & Cohesion Fund (CF), and 
(iv) European Social Fund (ESF). These funds made up EUR 114.8 billion or 43.6% of the total expenses 
of EUR 263.1 billion incurred in 2022 (2021: EUR 119.9 billion, 54.3% of the total expenses). The split of 
expenses under the shared management mode and their relative weights are presented below: 

Main expenses under the shared management mode for the financial year 2022 

The  decrease  of  expenses  under  the  shared  management  mode  is  mainly  due  to  decreased  expenses 
relating  to  the  ERDF  and  Cohesion  Fund  (by  EUR  3.8  billion)  and  the  ESF  (by  EUR  2.1  billion).  This 
reflects  the  transition  from  the  former  programming  period  of  the  2014-2020  MFF  to  the  current  MFF 
2021-2027:  the  costs  declared  for  the  previous  programming  period  are  decreasing  while  the  costs 
related to the current period are low due to the slow start of its implementation. Expenses relating to the 
EAFRD and other rural development instruments and the EAGF increased by EUR 0.6 billion and EUR 0.2 
billion respectively. 

Following the successful launch of NGEU (see section 2) in 2021, expenses under the direct management 
mode, which represents budget implementation by the Commission, executive agencies and trust funds, 
continued to increase from EUR 63.0 billion in 2021 to EUR 94.0 billion in 2022. The increase of EUR 31.0 
billion  is  mainly  due  to  the  non-repayable  support  granted  under  the  NGEU’s  RRF,  which  amounted  to 
EUR 69.5 billion (2021: EUR 42.9 billion). 

Expenses under the indirect management mode represent the budget implementation by EU agencies, EU 
bodies,  third  countries,  international  organisations  and  other  entities.  In  2022  the  expenses  under  the 
indirect management mode amounted to EUR 13.6 billion (2021: EUR 10.9 billion). The increase is mainly 
due to the increased expenses in the External Action area. 

26 

 
 
 
 
Annual accounts of the European Union 2022 

5.3.  ASSETS 

As  at  31  December  2022  total  assets  amounted  to  EUR  445.9  billion  (2021:  EUR  414.1  billion)  –  the 
increase is due to further lending from the SURE instrument and the lending and advances paid under the 
NGEU instrument. The most significant items were financial assets other than cash and cash equivalents 
(EUR 235.4 billion), pre-financing (EUR 100.5 billion), receivables and recoverables (EUR 48.2 billon) and 
cash  and  cash  equivalents  (EUR  46.5  billion).  Other  assets,  amounting  to  EUR  15.2  billion,  mainly 
included property, plant and equipment and intangible assets. 

Composition of assets at 31 December 2022  

The  increase  in  total  assets  of  EUR  31.8  billion  or  7.7%  from  the  previous  year  was  mainly  due  to  the 
following effects: 

 

 

Loans  outstanding  increased  from  EUR  163.6  billion  in  2021  to  EUR  204.4  billion  in  2022.  The 
increase  of  EUR  40.8  billion  or  24.9%  mainly  reflects  the  issuance  of  further  loans  for  financial 
assistance  programmes  to  Member  States  under  the  RRF  (EUR  27.2  billion),  SURE  (EUR  8.7 
billion)  programmes,  and  new  loans  under  the  MFA  inancial  assistance  programme  (EUR  7.5 
billion), of which EUR 7.2 billion was disbursed to Ukraine; 

Total  pre-financing  increased  from  EUR  93.4  billion  in  2021  to  EUR  100.5  billion  in  2022.  The 
decrease  of  EUR  7.9  billion  in  the  non-repayable  financial  support  granted  under  the  RRF  was 
more than counterbalanced by the increased pre-financing payments in the cohesion area (ERDF, 
ESF, CF) where, as well as the first pre-financing paid out for the 2021-2027 programming period 
(EUR  5.4  billion),  there  were  new  pre-financing  payments  made  for  the  2014-2020  period  that 
relate mainly to the REACT EU initial pre-financing (EUR 3.5 billion); 

  Cash and cash  equivalents increased from  EUR  44.9  billion in 2021  to  EUR 46.5  billion in 2022. 
The increase of EUR 1.6 billion or 3.6% is mainly due to the liquidity relating to NGEU (EUR 19.9 
billion  held  in  the  NGEU  account,  as  well  as  EUR  0.6  billion  of  funds  held  in  the  Commission’s 
central treasury account pending disbursement to the budget for MFF programmes); and 

  Receivables and recoverables decreased from EUR 72.4 billion to EUR 48.2 billion. The decrease 
of EUR 24.2 billion or 33.4% is mainly due to the decrease in the recoverable related to the UK 
Withdrawal agreement. 

27 

 
 
 
 
UK Withdrawal from the EU 

Annual accounts of the European Union 2022 

On  31  January  2020,  the  United  Kingdom  (UK)  withdrew  from  the  European  Union.  The  terms  of  its 
departure  are  defined  in  an  Agreement  on  the  withdrawal  of  the  UK  from  the  EU  and  the  European 
Atomic Energy Community, also known as the ‘Withdrawal Agreement’ or ‘WA’. As part of this deal, the 
UK agreed to honour all financial obligations undertaken while it was a member of the EU. The agreement 
entered into force on 31 January 2020. The UK will continue to contribute to the EU budget and to benefit 
from  pre-2021  EU  programmes  and  expenditure  as  if  it  was  a  Member  State.  The  UK  will  also  receive 
back certain defined monies it paid into the EU budget or monies received by the EU budget linked to its 
period of membership. The EU reports twice a year to the UK on the amounts due and the UK pays these 
on a monthly basis. The reporting is updated each year based on actual figures. 

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

  Own resources (Article 136) 

  Outstanding commitments (Article 140) 

  Competition fines (Article 141) 

  Union Liabilities (Article 142) 

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

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

 

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

  Contingent liabilities concerning legal cases (Article 147). 

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

Pre-financing 

Article 140  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 

In 2022, pre-financing, excluding other advances to Member States and contributions to the trust funds 
Bêkou and Africa, amounted to EUR 94.1 billion (2021: EUR 86.2 billion), almost all of which related to 
Commission activities. The increase of EUR 7.9 billion or 9.2% is related to the increase of pre-financing 
related to shared management from EUR 31.8 billion in 2021 to EUR 40.6 billion in 2022: 

28 

 
 
 
 
   
 
 
 
Commission pre-financing by management mode 

Annual accounts of the European Union 2022 

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

5.4.  LIABILITIES 

As  at  31  December  2022  the  total  liabilities  were  EUR  577.2  billion  (2021:  EUR  496.4  billion)  –  the 
increase is driven  mainly  by the borrowings taken  out  in  2022  under the  SURE  and NGEU  instruments. 
The  most  significant  liabilities  were  borrowings  for  NGEU  and  financial  assistance  (EUR  344.3  billion), 
accrued charges and deferred income (EUR 86.2 billion), pension obligations and other post-employment 
benefits liabilities (EUR 80.6 billion) and payables to third parties (EUR 55.3 billion).  

29 

 
 
 
 
Composition of liabilities at 31 December 2022  

Annual accounts of the European Union 2022 

The increase of EUR 80.8 billion or 16.3% over the previous year was mainly due to the following effects: 

  Borrowings increased from EUR 236.7 billion in 2021 to EUR 344.3 billion in 2022. The increase of 
EUR 107.6 billion or 45.5% mainly relates to the new issuances, net of repayments, under NGEU 
(EUR 96.9 billion) and to additional borrowings under SURE  (EUR 8.7 billion) and MFA (EUR 7.5 
billion); 

  Accrued charges and deferred income increased from EUR 78.1 billion in 2021 to EUR 86.2 billion 
in 2022. The increase of EUR 8.1 billion or 10.4% mainly relates to the RRF as the Member States 
advance  with  the  implementation  of  reforms,  and  investments  and  milestones  are  estimated  to 
have been completed; 

 

 

Payables increased from EUR 46.4 billion in 2021 to EUR 55.3 billion in 2022. The increase of EUR 
8.9  billion  or  19.2%  is  also  primarily  related  to  RRF  (increase  of  EUR  5.5  billion),  and  own 
resources payables (increase of EUR 3.7 billion); and 

The  increase  of  the  above  liabilities  was  partially  counterbalanced  by  a  decrease  of  EUR  41.9 
billion or 34.2% in the pension obligations and other post-employment benefits liabilities, which 
fell from EUR 122.5 billion in 2021 to EUR 80.6 billion in 2022. This decrease was mainly driven 
by  the  actuarial  gains  from  changes  in  the  underlying  financial  assumptions  resulting  from  a 
sharp increase in the real discount rates in the year. 

30 

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

Annual accounts of the European Union 2022 

Net assets 

The  excess  of  liabilities  over  assets  at  31  December  2022  amounted  to  EUR  131.3  billion  (2021:  EUR 
82.3 billion). The considerable increase of EUR 49.0 billion is mainly due to the borrowings in relation to 
non-repayable support taken out under NGEU in 2022 (resulting in direct management expenses of EUR 
69.5  billion,  an  increase  of  EUR  26.6  billion  against  the  previous  year).  It  is  noted  that  the  excess  of 
liabilities over assets does not mean that the EU institutions and bodies are in financial difficulties, rather 
it  means  that  certain  liabilities  will  be  funded  by  future  annual  budgets.  Many  expenses  are  recognised 
under accrual accounting rules in the current year although they may be actually paid in following years 
and funded using future budgets; the related revenues will only be accounted for in future periods. Apart 
from  the  borrowings  for  NGEU,  which  are  to  be  repaid  between  2028  and  2052,  and  the  employee 
benefits liability, which is to be paid over several decades, the most significant amounts to be highlighted 
are the activities relating to the EAGF, the bulk of which is usually paid in the first quarter of the following 
year. 

31 

 
 
 
 
Annual accounts of the European Union 2022 

6. 

EU POLITICAL AND FINANCIAL FRAMEWORK, 
GOVERNANCE AND ACCOUNTABILITY 

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

6.1.  POLITICAL AND FINANCIAL FRAMEWORK 

EU Treaties 

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

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

Multiannual financial 
framework and 
spending programmes 

The policies supported by the EU budget are implemented in accordance with 
the  multiannual  financial  framework  (MFF)  and  corresponding  sectoral 
legislation  defining  spending  programmes  and  instruments.  These  translate 
the EU’s political priorities into financial terms over a period long  enough to 
be effective and to provide a coherent long-term perspective for beneficiaries 
of  EU  funds  and  co-financing  national  authorities.  Maximum  annual  amounts  (ceilings)  are  set  for  EU 
expenditure as a whole and for the main categories of expenditure (headings). The sum of the ceilings of 
all headings gives the total ceiling for commitment appropriations. The MFF is adopted by the Council by 
unanimity  of  all  Member  States,  with  the  consent  of  the  European  Parliament.  The  current  2021-2027 
multiannual  financial  framework  was  adopted  on  17  December  2020.  The  2021-2027  multiannual 
financial  framework  is  complemented  by  the  temporary  recovery  instrument  NextGenerationEU  (see 
section 2). 

Annual budget 

The annual budget is prepared by the Commission. The European Parliament 
and  the  Council  agree  (usually  by  mid  December)  on  the  budget  for  the 
following year, based on the procedure of Article 314 TFEU. According to the 
principle  of  budgetary  equilibrium,  total  revenue  must  equal  total 
expenditure (payment appropriations) for a given financial year. 

The main sources of funding of the EU budget are own resources revenues which are complemented by 
other  revenues.  There  are  four  types  of  own  resources:  Traditional  own  resources  (mainly  custom 
duties),  the  own  resource  based  on  value  added  tax  (VAT),  the  own  resource  based  on  non-recycled 
plastic  packaging  waste  (introduced  in  2021)  and  the  own  resource  based  on  gross  national  income 
(GNI).  Other  revenues  arising  from  the  activities  of  the  EU  (e.g.  competition  fines)  normally  represent 
less than 10% of total revenue.  

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

32 

 
 
 
 
                                                 
Annual accounts of the European Union 2022 

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

Management modes 

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

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

implementation of specific programmes to executive agencies. 

 

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

Financial instruments 
and budgetary 
guarantees 

The  traditional  method  of  budget  implementation  of  giving  grants  and 
subsidies  is  complemented  by  issuing  financial  instruments  in  the  form  of 
guarantees  as  well  as  equity  and  loans.  Furthermore,  the  EU  engages  in 
borrowing and lending activities for specific financial assistance programmes 
in order to support Member States and third countries in the form of bilateral 
loans  financed  from  debt  issued  on  the  capital  markets  with  the  guarantee  of  the  EU  Budget.  In 
December 2022, Parliament and the Council established the unified funding approach to EU borrowing, 
under  which  the  Commission  will  be  issuing  single  branded  ‘EU-Bonds’,  rather  than  separately 
denominated bonds for individual programmes. 

Financial Regulation 

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

to financial instruments, budgetary guarantees and financial assistance 

6.2.  GOVERNANCE AND ACCOUNTABILITY 

6.2.1. 

Institutional structure 

The  EU  has  an  institutional  framework  through  which  it  aims  to  promote  its  values,  advance  its 
objectives,  serve  its  interests,  those  of  its  citizens  and  those  of  the  Member  States,  and  ensure  the 
consistency, effectiveness and continuity of its policies and actions. The organisational structure consists 
of  institutions,  agencies  and  other  EU  bodies.  The  Financial  Regulation,  together  with  the  applicable 
accounting rules, defines which of these entities are included in the EU consolidated accounts (please see 
note  9  of  the  EU  consolidated  annual  accounts  for  the  list  of  entities  included  in  the  scope  of 
consolidation). 

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

The European Commission is the executive arm of the European Union. It promotes the Union’s general 
interest  and  takes  appropriate  initiatives  to  that  end.  It  ensures  the  application  of  the  Treaties  and 
oversees the application of Union law by Member States under the control of the Court of Justice of the 

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

33 

 
 
 
 
 
 
 
 
                                                 
Annual accounts of the European Union 2022 

European  Union.  It  exercises  coordinating,  executive  and  management  functions,  executes  the  budget 
and manages programmes. 

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

6.2.2. 

The Commission’s governance structure 

The Commission’s governance  arrangements and  how  these  ensure that  the Commission functions as a 
modern,  accountable  and  performance-oriented  institution  are  described  in  the  Communication11  on 
Governance in the European Commission. 

The Commission performs its functions under the leadership of the College of Commissioners, which sets 
priorities  and  takes  overall  political  responsibility  for  the  work  of  the  Commission.  As  a  College,  the 
Commission  works  under  the  political  guidance  of  its  President,  who  presents,  as  part  of  his  or  her 
nomination to the European Parliament the objectives he or she intends to pursue in the form of political 
guidelines.  The  President  decides  on  the  internal  organisation  of  the  Commission,  ensuring  that  it  acts 
consistently, efficiently and as a collegiate body. 

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

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

The  internal  arrangements  define  a  coherent  set  of  robust  controls  and  management  tools  which  allow 
the College of Commissioners to assume political responsibility for the work of the Commission.12 

6.2.3. 

The Commission’s financial management 

In the Commission, the roles and responsibilities in financial management are clearly defined (e.g. in the 
Financial  Regulation  and  the  Internal  Rules13)  and  applied  accordingly.  As  authorising  officers  by 
delegation,  the  Commission’s  Directors-General  and  Heads  of  Service  are  responsible  for  the  sound 
financial  management  of  EU  resources,  compliance  with  the  provisions  of  the  Financial  Regulation,  risk 
management and establishing an appropriate internal control framework.  

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

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

10  See Article 317 TFEU. 
11  C(2020) 4240 of 24.6.2020. 
12 As  a  result,  the  term  'European  Commission'  is  used  to  denote  both  the  institution  –  the  College  –  formed  by  the 
Members  of  the  Commission,  and  its  administration  managed  by  the  Directors-General  of  its  departments  (and 
heads of other administrative structures such as services, offices and executive agencies). 

13 Since  mid-2019  (further  to  the  revised  Article  12  of  the  Internal  Rules)  the  management  of  the  European 
Development Fund (EDF) is co-delegated among five departments (INTPA (DEVCO), ECHO, EAC, EACEA and JRC). 

34 

 
                                                 
Annual accounts of the European Union 2022 

The  Financial  Regulation  requires  each  authorising  officer  to  prepare  an  annual  activity  report  (AAR) 
detailing  achievements,  internal  control  and  financial  management  activities  during  the  year.  The  AAR 
includes  a  declaration  that  resources  have  been  used  based  on  the  principles  of  sound  financial 
management  and  that  control  procedures  are  in  place  which  provide  the  necessary  guarantees 
concerning  the  legality  and  regularity  of  the  underlying  transactions.  The  Annual  Management  and 
Performance  Report  for  the  EU  budget14  is  the  main  instrument  through  which  the  College  of 
Commissioners  assumes  political  responsibility  for  the  financial  management  of  the  EU 
budget. 

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

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

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

6.2.4.  External audit and discharge procedure 

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

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

Every  year  the  European  Court  of  Auditors  examines  the  reliability  of  the  accounts,  whether  all 
revenue has been received and all expenditure incurred in a lawful and regular manner and whether the 
financial  management  and  the  qualitative  aspects  of  budgeting,  including  the  performance  dimension, 
have been sound. As from 2021, given the considerable importance of NextGenerationEU, the European 
Court of Auditor’s opinion on the legality and regularity of expenditure under the traditional EU budget is 
complemented  by  a  separate  opinion  on  the  legality  and  regularity  of  expenditure  under  the  Recovery 
and  Resilience  Facility.  The  publication  of  the  annual  report  of  the  European  Court  of  Auditors  is  the 
starting point for the discharge procedure. The auditors also prepare special reports on specific spending 
or policy areas, or on budgetary or management issues.  

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

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

35 

 
 
                                                 
Annual accounts of the European Union 2022 

NOTE ACCOMPANYING THE 
CONSOLIDATED ACCOUNTS 

The consolidated annual  accounts of  the  European  Union for the year 2022  have  been prepared  on the 
basis  of  the  information  presented  by  the  institutions  and  bodies  under  Article  246(2)  of  the  Financial 
Regulation  applicable  to  the  general  budget  of  the  European  Union.  I  hereby  declare  that  they  were 
prepared  in  accordance  with  Title  XIII  of  this  Financial  Regulation  and  with  the  accounting  principles, 
rules and methods set out in the notes to the financial statements. 

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

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

Rosa ALDEA BUSQUETS 

Accounting Officer of the Commission 

19 June 2023 

36 

 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

EUROPEAN UNION 
FINANCIAL YEAR 2022 

CONSOLIDATED FINANCIAL STATEMENTS 
AND EXPLANATORY NOTES 

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

37 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

CONTENTS 

BALANCE SHEET .............................................................................................. 39 

STATEMENT OF FINANCIAL PERFORMANCE ......................................................... 40 

CASHFLOW STATEMENT ................................................................................... 41 

STATEMENT OF CHANGES IN NET ASSETS .......................................................... 42 

NOTES TO THE FINANCIAL STATEMENTS ............................................................ 43 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

SIGNIFICANT ACCOUNTING POLICIES .................................................. 44 

NOTES TO THE BALANCE SHEET .......................................................... 59 

NOTES TO THE STATEMENT OF FINANCIAL PERFORMANCE ..................... 95 

CONTINGENT LIABILITIES AND ASSETS ............................................. 104 

BUDGETARY AND LEGAL COMMITMENTS ............................................. 110 

FINANCIAL RISK MANAGEMENT ......................................................... 114 

RELATED PARTY DISCLOSURES ......................................................... 133 

EVENTS AFTER THE BALANCE SHEET DATE ......................................... 135 

SCOPE OF CONSOLIDATION .............................................................. 136 

38 

 
 
 
Annual accounts of the European Union 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 

 EUR million 
31.12.2022  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 

 900 
12 922 
1 313 
226 431 
47 482 
18 870 
307 917 

8 981 
53 014 
29 329 
 82 
46 544 
137 950 
445 867 

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

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

(80 617) 
(2 199) 
(323 985) 
(406 801) 

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

 (571) 
(28 316) 
(55 341) 
(86 164) 
(170 392) 
(577 193) 

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

(131 325) 

(82 299) 

Reserves 
Amounts to be called from Member States* 
NET ASSETS 

2.14 
2.15 

1 312 
(132 637) 
(131 325) 

1 325 
(83 624) 
(82 299) 

*  The  European  Parliament  adopted  a  budget  on  23  November  2022  which  provides  for  the  payment  of  the  Union's  short -term 
liabilities  from  own  resources  to  be  collected  by,  or  called  up  from,  the  Member  States  in  the  following  year.  Additionally,  under 
Article  83  of  the  Staff  Regulations  (Regulation  (EEC,  Euratom,  ECSC)  No  259/68  of  29  February  1968  as  amended),  the  Member 
States shall jointly guarantee the liability for pensions. 

39 

 
 
 
 
 
 
   
 
 
 
   
 
 
 
 
 
 
   
 
   
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

STATEMENT OF FINANCIAL PERFORMANCE 

Note 

2022 

2021      

EUR million 

REVENUE 
Revenue from non-exchange transactions 
GNI resources 
Traditional own resources 
VAT resources 
Plastics own resources 
Fines 
Recovery of expenses 
UK Withdrawal Agreement 
Other 

Revenue from exchange transactions 
Financial revenue 
Other 

Total Revenue 
EXPENSES 
Implemented by Member States 
     European Agricultural Guarantee Fund 
     European Agricultural Fund for Rural Development and 
     other rural development instruments 
     European Regional Development Fund and Cohesion Fund 
     European Social Fund 
     Other 
Implemented by the Commission, executive agencies and 
trust funds 
Implemented by other EU agencies and bodies 
Implemented by third countries and international 
organisations 
Implemented by other entities 
Staff and pension costs 
Finance costs 
UK Withdrawal Agreement 
Other expenses 
Total Expenses 
ECONOMIC RESULT OF THE YEAR 

3.1 
3.2 
3.3 
3.4 
3.5 
3.6 
3.7 
3.8 

3.9 
3.10 

3.11 

3.12 
3.13 
3.13 
3.13 
3.14 
3.15 
3.7 
3.16 

103 880 
23 495 
19 666 
6 337 
 915 
1 219 
– 
11 395 
166 908 

2 602 
1 669 
4 271 
171 179 

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

(14 649) 
(3 482) 
(94 027) 

(3 615) 
(5 281) 
(4 738) 
(14 209) 
(7 637) 
(6 961) 
(8 342) 
(263 128) 
(91 949) 

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

5 092 
1 497 
6 589 
178 946 

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

(16 727) 
(4 835) 
(63 000) 

(3 154) 
(4 512) 
(3 225) 
(12 417) 
(4 201) 
- 
(5 762) 
(221 046) 
(42 100) 

40 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

CASHFLOW STATEMENT 

Economic result of the year 
Operating activities 
Amortisation 
Depreciation 
(Reversal of) impairment losses on investments 
(Increase)/decrease in loans 
(Increase)/decrease in pre-financing 
(Increase)/decrease in exchange receivables and non-exchange 
recoverables 
(Increase)/decrease in inventories 
Increase/(decrease) in pension and other employee benefits 
Increase/(decrease) in provisions 
Increase/(decrease) in financial liabilities (other than NGEU borrowings) 
Increase/(decrease) in payables 
Increase/(decrease) in accrued charges and deferred income 
Prior year budgetary surplus taken as non-cash revenue 
Remeasurements in employee benefits liabilities (non-cash movement 
not included in statement of financial performance) 
Other non-cash movements 
Investing activities 
(Increase)/decrease in intangible assets and property, plant and 
equipment  
(Increase)/decrease in investments accounted for using the equity 
method 
(Increase)/decrease in non-derivative financial assets at fair value 
through surplus or deficit* 
(Increase)/decrease in derivative financial assets at fair value through 
surplus or deficit 
Financing activities 
Increase/(decrease) in borrowings related to NGEU 
NET CASHFLOW 

Net increase/(decrease) in cash and cash equivalents 
Cash and cash equivalents at the beginning of the year 
Cash and cash equivalents at year-end 

2022 
(91 949) 

 135 
1 284 
– 
(40 787) 
(7 049) 

24 239 

 2 
(41 850) 
 (578) 
14 050 
8 969 
8 096 
(3 227) 

46 048 

 102 

EUR million 
2021 
(42 100) 

 116 
1 054 
– 
(70 259) 
(30 699) 

2 055 

 (4) 
6 447 
(2 057) 
60 075 
13 964 
13 484 
(1 769) 

(3 257) 

(1 757) 

(1 803) 

(2 307) 

 (121) 

 (604) 

(5 850) 

(4 636) 

 (156) 

 (629) 

92 128 
1 684 

1 684 
44 860 
46 544 

91 000 
28 118 

28 118 
16 742 
44 860 

41 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENT OF CHANGES IN NET ASSETS 

Annual accounts of the European Union 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) 
(38 480) 
1 719 
(36 761) 
(3 257) 
 262 
(1 769) 
(42 100) 
(83 624) 
46 048 
 115 
(3 227) 
(91 949) 
(132 637) 

Other reserves  Fair value reserve 

Net Assets  

EUR million 

4 566 
(3 043) 
1 523 
– 
 (198) 
– 
– 
1 325 
– 
 (13) 
– 
– 
1 312 

 496 
 (496) 
– 
– 
– 
– 
– 
– 
– 
– 
– 
– 
– 

(33 418) 
(1 820) 
(35 238) 
(3 257) 
 63 
(1 769) 
(42 100) 
(82 299) 
46 048 
 102 
(3 227) 
(91 949) 
(131 325) 

42 

 
 
 
 
 
 
 
 
  
  
Annual accounts of the European Union 2022 

NOTES TO THE FINANCIAL STATEMENTS 

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

43 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

1. 

SIGNIFICANT ACCOUNTING POLICIES 

1.1.  LEGAL BASIS AND ACCOUNTING RULES 

The accounts of the EU are kept in accordance with Regulation (EU, Euratom) 2018/1046 of the European 
Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of 
the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 
1304/2013,  (EU)  No  1309/2013,  (EU)  No  1316/2013,  (EU)  No  223/2014,  (EU)  No  283/2014,  and 
Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30 July 2018, 
p. 1) hereinafter referred to as the ‘Financial Regulation’ (FR). 

In accordance with Article 80 of the Financial Regulation, the EU prepares its financial statements on the 
basis  of  accrual-based  accounting  rules  that  are  based  on  International  Public  Sector  Accounting 
Standards (IPSAS). These accounting rules, adopted by the Accounting Officer of the Commission, have 
to  be  applied  by  all  the  institutions  and  EU  bodies  falling  within  the  scope  of  consolidation  in  order  to 
ensure the internal consistency of the EU consolidated accounts. 

Application of new and amended European Union Accounting Rules (EAR) 

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). 

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 

44 

 
Annual accounts of the European Union 2022 

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. 

1.4.1.  Currency and basis for conversion 

Functional and reporting currency 

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

45 

 
Transactions and balances 

Annual accounts of the European Union 2022 

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

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

46 

 
 
1.5.2. 

Property, plant and equipment 

Annual accounts of the European Union 2022 

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. 

1.5.3. 

Impairment of non-financial assets 

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

47 

 
Annual accounts of the European Union 2022 

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. 

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. 

48 

 
 
Annual accounts of the European Union 2022 

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

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

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

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

Initial recognition and measurement 

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

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

The  fair  value  of  a  financial  asset  on  initial  recognition  is  normally  the  transaction  price  unless  the 
transaction is not at arm’s length i.e. at no or at nominal consideration for public policy purposes. In this 
case, the difference between the fair value of the financial instrument and the transaction price is a non-

49 

 
Annual accounts of the European Union 2022 

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 
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. 

50 

 
 
Annual accounts of the European Union 2022 

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

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

For  assets  at  amortised  cost,  the  asset’s  carrying  amount  is  reduced  by  the  amount  of  the  impairment 
loss which is recognised in the statement of financial  performance. For assets at fair  value through  net 
assets/equity  the  loss  allowance  is  recognised  in  net  assets/equity  and  does  not  reduce  the  carrying 
amount  of  the  financial  asset  in  the  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  6.5),  thus  having  very  low  default 
probabilities. Given the short duration and low default probabilities, the expected credit losses from cash 
and  cash  equivalents  are  negligible.  As  a  result,  no  impairment  allowance  is  recognised  for  cash 
equivalents. 

Derecognition 

Financial instruments are derecognised when the rights to receive cashflows from the investments have 
expired or the EU has transferred substantially all risks and rewards of ownership to another party. Sales 
of financial assets at fair value through net assets/equity and through surplus or deficit are recognised on 
their trade-date. 

1.5.6. 

Inventories 

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the first-in, 
first-out (FIFO) method. The cost of finished goods and work in progress comprises raw materials, direct 
labour,  other  directly  attributable  costs  and  related  production  overheads  (based  on  normal  operating 
capacity). Net realisable value is the estimated selling price in the ordinary course of business, less the 
costs of completion and selling expenses. When inventories are held for distribution at no charge or for a 

51 

 
Annual accounts of the European Union 2022 

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). 

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. 

52 

 
 
1.5.9.  Cash and cash equivalents 

Annual accounts of the European Union 2022 

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 funded15 
scheme  relate  to  seniority,  invalidity  and  survival,  as  well  as,  family  allowances,  death  before 
retirement to those employees that work or worked in the EU Institutions, Agencies and other EU 
bodies  or  are  survivors  of  deceased  officials  or  pensioners.  Staff  contribute  one  third  of  the 
expected cost of these benefits from their salaries. 

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

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

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

15 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). 

53 

 
                                                 
Annual accounts of the European Union 2022 

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. 

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. 

54 

 
Annual accounts of the European Union 2022 

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

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

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

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

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 
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 

55 

 
Annual accounts of the European Union 2022 

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 

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. 

56 

 
Annual accounts of the European Union 2022 

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 3.9. 

Revenue from financial guarantee contracts 

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

1.6.2.  Expenses 

Expenses from non-exchange transactions account for the majority of the  EU’s expenses. They relate to 
transfers to beneficiaries and can be of three types: (i) entitlements, (ii) transfers under agreement and 
discretionary grants, as well as (iii) contributions and donations. 

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

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

Expenses  from  exchange  transactions  arising  from  the  purchase  of  goods  and  services  are  recognised 
when  the  supplies  are  delivered  and  accepted  by  the  EU.  They  are  valued  at  their  original  invoice 
amount.  Furthermore,  at  the  balance  sheet  date,  expenses  related  to  the  service  delivered  during  the 

57 

 
Annual accounts of the European Union 2022 

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.  

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). 

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Annual accounts of the European Union 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 

1 636 
 280 
 (54) 
0 
 (12) 
1 849 
 (867) 
 (135) 
- 
 49 
0 
 3 
 (949) 

 900 
 769 

The above amounts relate primarily to computer software.  

2.2.  PROPERTY, PLANT AND EQUIPMENT 

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

For Galileo, two satellites launched in December 2021 have been declared operational in March 2022. The 
constellation currently includes 28 satellites. When completed, the Galileo constellation will comprise  30 
satellites (including 6 spare satellites). The Galileo operational fixed assets, covering both satellites and 
ground  installations,  amounted  to  EUR 3  056  million  at  31  December  2022,  net  of  accumulated 
depreciation (2021: EUR 3 413 million). The remaining assets under construction total EUR 1 812 million 
(2021: EUR 1 344 million).  

Regarding  Copernicus,  following  a  technical  incident  involving  the  SAR  instrument  (providing  the  radar 
data) on board of Sentinel-1B, and despite all efforts to reactivate the satellite, it has been concluded in 
July  2022  that  Sentinel-1B  could  no  longer  support  the  Sentinel-1  mission.  Sentinel  1B  has  thus  been 
fully  written  off  (EUR  86  million,  net  of  accumulated  depreciation).  The  total  value  of  Copernicus 
operational fixed assets  is  EUR 634 million  (2021:  EUR 937  million), net  of accumulated depreciation. A 
further  EUR 2  583 million  related  to  Copernicus  satellites  is  recognised  as  assets  under  construction 
(2021: EUR 2 115 million).  

Fixed assets related to the EGNOS ground infrastructure of EUR 106 million (2021: EUR 130 million) are 
also included under the heading ‘Space assets’. In addition, EGNOS assets under construction amount to 
EUR 292 million (2021: EUR 189 million). 

59 

 
 
 
 
 
 
 
Property, plant and equipment 

Annual accounts of the European Union 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 

Other changes 

Land and 
Buildings 
6 547 

Space 
assets 
7 730 

Plant and 
Equipment 
 568 

Furniture and 
Vehicles 
 281 

Computer 
Hardware 
 781 

 34 

 (6) 

 32 

 (0) 

 7 

 (340) 

 206 

– 

6 608 

7 603 

(3 846) 

(3 250) 

 (172) 

 (811) 

 0 

 2 

 0 

– 

– 

 255 

– 

– 

 36 

 (32) 

 0 

– 

 572 

 (479) 

 (42) 

– 

 27 

 0 

 (0) 

 13 

 (14) 

 1 

– 

 280 

 (208) 

 (15) 

 0 

 14 

 (0) 

 (0) 

Other 

 347 

 24 

 (10) 

 6 

 0 

Finance 
leases 
2 651 

 139 

 (109) 

– 

 (6) 

 Assets under 
construction 
3 890 

1 349 

– 

 (245) 

– 

EUR million 

Total 

22 793 

1 710 

 (561) 

 0 

 (6) 

 107 

 (49) 

 0 

 (0) 

 838 

 367 

2 675 

4 995 

23 937 

 (581) 

 (276) 

(1 487) 

 (96) 

 (21) 

 (133) 

 (0) 

 47 

 (0) 

– 

– 

 9 

 (0) 

 0 

 5 

 62 

– 

 (22) 

(10 126) 

(1 290) 

 6 

 417 

 (0) 

 (22) 

Accumulated depreciation at 31.12.2022 

(4 016) 

(3 807) 

 (494) 

 (209) 

 (630) 

 (288) 

(1 574) 

(11 015) 

NET CARRYING AMOUNT AT 31.12.2022 

NET CARRYING AMOUNT AT 31.12.2021 

2 592 

2 701 

3 796 

4 480 

 78 

 89 

 71 

 73 

 208 

 199 

 79 

 72 

1 101 

1 164 

4 995 

3 890 

12 922 

12 669 

60 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 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.  The  EIF  is  the  EU's  financial  institution 
specialising in providing risk capital and guarantees to Small and Medium-sized Entities (SMEs). The EIF 
operates as a private-public partnership, whose members are the European Investment Bank (EIB), the 
EU and a group of financial institutions.  

At 31 December 2022, the EU holds 30% of ownership interests in the EIF (2021: 30%) and 30% of the 
voting rights (2021: 30%). The table below shows the current year’s movement of the EU’s participation 
in the EIF. 

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  EU, represented by 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 

61 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

2.4.  FINANCIAL ASSETS 

Note 

31.12.2022 

EUR million 
31.12.2021 

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

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

2.4.1 
2.4.2 

2.4.1 
2.4.2 

Total 

2.4.1. 

Financial assets at amortized cost 

199 918 
26 513 
226 431 

4 437 
4 544 
8 981 
235 412 

160 214 
21 660 
181 874 

3 353 
3 391 
6 744 
188 618 

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

Note 
2.4.1.1 
2.4.1.2 

31.12.2022 
204 103 
 251 
204 354 
199 918 
4 437 

EUR million 
31.12.2021 
163 392 
 176 
163 568 
160 214 
3 353 

2.4.1.1.  Loans for RRF (NGEU) and financial assistance  

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) 
17 978 
27 187 
– 

SURE 
90 567 
8 718 
– 

EFSM  BOP 
 201 
47 138 
– 
2 200 
– 
(2 700) 

MFA  Euratom 
 338 
– 
 (23) 

7 170 
7 535 
 (10) 

EUR million 
Total 
163 392 
45 639 
(2 733) 

 176 

 (155) 

 (51) 

 0 

 (60) 

 0 

 (90) 

– 

– 

– 
45 340  99 130  46 587 
42 666 
99 026 
45 156 
3 921 
 104 
 184 

– 

(2 023) 
 201  12 613 
12 482 
 200 
 130 
 1 

 (82) 
(2 105) 
 232  204 103 
199 749 
 218 
4 354 
 14 

The nominal value of loans  at 31 December 2022 is EUR 205 301  million (2021: EUR 162 394 million), 
out of which EUR 160 145 million refers to loans for financial assistance  and EUR 45 156 million to the 
RRF.  

The  line ‘changes in impairment’  corresponds to the  remeasurement of the  expected credit losses  as at 
31 December 2022. The line ‘changes in carrying amount’ corresponds to the change in accrued interests 
and the change in premiums/discounts (new premiums/discounts and amortisation). 

The  financial  assistance  programmes  operate  on  a  ‘back-to-back’  basis.  This  means  that  the  loans  are 
financed  by  equivalent  borrowings,  with  the  same  terms.  The  maturities  are  the  same,  the  issue 
premiums/discounts and the costs are recharged to the loan beneficiary. At maturity, the loan beneficiary 
reimburses  the  Commission  and  the  Commission  repays  the  borrowing.  For  the  RRF  loans  there  is  no 
back-to-back  relationship  between  the terms of  the  loans  and  the  NGEU  borrowings  (for  the  funding  of 
these loans see note 2.11.1.1). 

Recovery and Resilience Facility (RRF) 

The RRF is a temporary instrument to help the Member States’ economies recover from the coronavirus 
pandemic  and  become  resilient  to  green  and  digital  transitions.  Under  the  EU  Recovery  Instrument 
(NGEU),  the  Commission  borrows  funds  which  the  RRF  uses  to  finance  Member  States’  reforms  and 
investments. These have to be in line with EU priorities and have to address the challenges identified in 
country-specific recommendations under the European Semester framework of economic and social policy 

62 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

coordination. The financing can be either a loan (repayable support) or a grant (non-repayable support, 
see  note  2.5).  The  Member  States  can  receive  financing  up  to  a  previously  agreed  allocation  for  loans 
and grants. To benefit from the support, the Member States have to submit their national recovery and 
resilience  plans  to  the  European  Commission.  Each  plan  sets  out  the  reforms  and  investments  to  be 
implemented by the end of 2026, defining clear milestones and targets to be analysed by the European 
Commission and approved by the European Council. The RRF loans can be disbursed until 31 December 
2026, but only after the achievement of the agreed milestones and targets.  

At 31 December 2022, the signed loan agreements were EUR 153.9 billion out of which EUR 45.2 billion 
are already disbursed. 

Support to mitigate Unemployment Risks in an Emergency (SURE) 

SURE is a European instrument whose aim is to maintain people in work and support jobs affected by the 
coronavirus pandemic. The instrument enables Member States to request EU financial assistance to help 
finance  sudden  and  severe  increases  of  national  public  expenditure  related  to  national  short-time  work 
schemes and similar measures, including for self-employed persons, or to some health-related measures, 
in particular in the work place in response to  the crisis. It can provide financial assistance of up to EUR 
100 billion in the form of loans to affected Member States.  

At  31  December  2022  the  Council  had  approved  and  the  Commission  had  signed  loan  agreements  for 
EUR  98.4  billion  of  financial  assistance.  The  availabillity  of  the  instrument  ended  at  31  December  2022 
and there are no pending disbursements. 

European Financial Stabilisation Mechanism (EFSM) 

The  EFSM  enabled  the  granting  of  financial  assistance  to  a  Member  State  in  difficulties,  or  seriously 
threatened by severe difficulties caused by exceptional circumstances beyond  its control. The assistance 
could take the form of a loan or credit line. The programme has expired but remains in place for specific 
tasks like the maturity extension of the loans.  In December 2021, Portugal requested the  extension for 
EUR  2.2  billion  of  the  total  EUR  2.7  billion  loan  due  in  2022.  The  Commission  has  borrowed  EUR  2.2 
billion  to  roll-over  the  loan,  which  has  been  extended  by  4.5  years.  The  remaining  EUR  0.5  billion  was 
repaid. 

Balance of Payments (BOP) 

This  is  a  policy-based  financial  instrument  that  provides  medium-term  financial  assistance  to  Member 
States  that  have  not  adopted  the  Euro.  It  enables  the  granting  of  loans  to  Member  States  who  are 
experiencing,  or  are  seriously  threatened  by,  difficulties  in  their  balance  of  payments  or  capital 
movements.  The  maximum  outstanding  amount  of  loans  granted  under  the  instrument  is  limited  to 
EUR 50 billion. There are no undrawn amounts from signed loan agreements. 

Macro-Financial Assistance (MFA) 

The  MFA  is  a  form  of  financial  assistance  from  the  EU  to  partner  countries  experiencing  a  balance  of 
payment crisis. It takes the form of medium or long term loans or grants or an appropriate combination 
of  both  and  generally  complements  financing  provided  in  the  context  of  an  IMF-supported  adjustment 
and reform programme.  

During 2022, additional loans of EUR 7.5 billion were disbursed, including EUR 7.2 billion of new loans to 
Ukraine,  granted  with  a  view  to  supporting  Ukraine’s  economic  stabilisation  and  to  strengthen  the 
immediate resilience of the country subsequent to Russia’s unprovoked and unjustified war of aggression. 
Total nominal exposure of MFA loans outstanding at year end amounted to EUR 15 billion, out of which 
EUR 11.6 billion was granted to Ukraine. 

MFA loans and related borrowings are guaranteed by the CPF and then, if needed, by the EU budget. In 
addition, loans provided to Ukraine under  the  MFA  exceptional financial assistance  programme  in 2022, 
totalling EUR 6 billion, are also covered by a system of guarantees from Member States  for 61% of the 
exposure on top of the 9% first losses covered by the CPF. EUR 1.6 billion of these guarantees have been 
signed  by  the  end  of  2022,  while  another  EUR  1.6  billion  were  signed  by  31  May  2023.  The  remaining 
guarantees are still subject to the administrative procedures of the Member States, which are expected to 
be finalised in the course of 2023.  

As  at  31  December  2022,  the  impairment  allowance  for  MFA  loans  is  EUR  2.3  billion  (2021:  EUR  293 
million), out of which EUR  2.2 billion refer to the loans to Ukraine. While all amounts due in 2022 from 
Ukraine were paid on time and at the moment of preparation of the annual accounts there is no overdue 
interests  on  loans  to  Ukraine,  the  impairment  reflects  the  life-time  expected  credit  losses  from  the  EU 
loans to Ukraine estimated with a particular prudence due to significant uncertainties involved. 

63 

 
Annual accounts of the European Union 2022 

Guarantees provided by the Member States for the exceptional MFA constitute a credit enhancement for 
the EU budget and thus they reduce the expected credit losses on those loans to EUR 0.3 billion (out of 
the entire impairment allowance of EUR 2.2 billion covering the total MFA loans to Ukraine). See also note 
6.5. 

As at 31 December 2022, there are EUR 285 million conditional undrawn amounts from signed MFA loan 
agreements (2021: EUR 625 million). 

European Atomic Energy Community loans (Euratom) 

The  European  Atomic  Energy  Community  (Euratom,  represented  by  the  Commission)  lends  money  to 
both  Member  States  and  non-Member  States,  and  to  entities  of  both,  to  finance  projects  relating  to 
energy installations. Out of the total Euratom loans outstanding at 31 December 2022, EUR 300 million 
(nominal value) relates to loans  to Energoatom, guaranteed by Ukraine. For  these loans an impairment 
allowance of EUR 95 million has been recognised.  

At  31  December  2022,  the  Commission  had  received  guarantees  from  third  parties  of  EUR 327  million 
(2021:  EUR 350  million)  to  cover  Euratom  loans.  There  are  no  undrawn  amounts  from  signed  loan 
agreements.  

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

RRF (NGEU) 
SURE 
EFSM 
BOP 
MFA 
Euratom 

EU budget guarantee 

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% 

The  EU  budget  guarantees  the  Commission  borrowings  which  finance  the  loans  under  the  RRF  and 
financial  assistance  programmes.  If  there  would  be  unpaid  loan  amounts  in  the  future,  the  EU  budget 
may have to repay the related borrowing amounts.  

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

guaranteed solely by the EU budget; 

  Borrowings related to SURE are guaranteed by the EU budget and underpinned by Member States 

guarantees of EUR 25 billion; and 

  MFA borrowings for loans to third countries are firstly covered by the CPF (see note  2.4.2) and 
then  by  the  EU  budget,  with  exception  of  the  MFA  exceptional  financial  assistance  loans  to 
Ukraine of EUR 6 billion that are covered by guarantees provided by the Member States after the 
first 9% of losses to be covered by CPF;  

 

Euratom  borrowings  are  firstly  covered  by  the  by  3rd  party  guarantees,  then  by  CPF  (see  note 
2.4.2), and then by the EU budget. 

For more details, see note 6.6. 

UK obligations arising from its departure from the EU 

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

The EU’s outstanding contingent liability relating to the above loans for financial assistance amounted to 
EUR 53.9 billion as at the withdrawal date. Following repayments since that date, the value of these loans 

64 

 
 
Annual accounts of the European Union 2022 

covered  by  the  EU  guarantee  at  31  December  2022  is  EUR  52.4  billion  –  the  UK’s  share  of  this  is 
EUR 6.5 billion. 

2.4.1.2.  Other loans 

These include 3 types of loans:  

a)  Loans  granted  from  EU  budget  programmes  (e.g.  the  MEDA  programme  Euro-Mediterranean 
Partnership  and  the  EU  Employment  and  Social  Innovation  programme).  These  loans  total 
EUR 79 million as at 31 December 2022 (2021: EUR 74 million). 

b)  Subrogated  loans:  These  are  loans  disbursed  by  the  EIB  and  guaranteed  by  the  EFSI  and  ELM 
programmes. The loans defaulted, the Commission paid the guarantee calls and therefore holds 
the  recovery  rights.  As  a  result  the  loans  are  now  recognised  on  the  EU  balance  sheet. 
At 31 December 2022, the Commission holds the recovery rights for EUR 1.0 billion of such loans, 
including  accrued  interests  (2021:  EUR  855  million).  However,  after  taking  into  account  the 
expected  credit  losses,  the  amount  recognised  on  the  balance  sheet  is  EUR  126  million  (2021: 
EUR 48 million).  

c)  Term deposits of EUR 46 million (2021: EUR 54 million) with maturity of over 3 months that do 

not meet the definition of cash equivalents.  

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 

Note 
2.4.2.1 
2.4.2.2 

31.12.2022 
30 073 
 984 
31 057 
26 513 
4 544 

EUR million 
31.12.2021 
24 223 
 828 
25 051 
21 660 
3 391 

31.12.2022 
24 647 
2 895 
2 532 
30 073 
25 534 
4 539 

EUR million 
31.12.2021 
19 326 
2 513 
2 384 
24 223 
20 834 
3 390 

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

Money  market  funds  (MMFs)  are  mutual  funds  that  invest  in  short-term  debt  securities  (e.g.  the  EIB 
unitary  fund).  The  exchange-traded  funds  (ETFs)  are  investment  funds that  are  traded  on stock 
exchanges.  They  track  indices  and  hold  assets  such  as stocks, bonds, currencies, futures  contracts.  The 
investments  in  pooled portfolios  are  the  EU  funds  of  CEF  and  H2020  programmes  pooled  together  with 
Member States’ funds from  the NER 300 programme. They are used to provide guarantees to the EIB’s 
financing and investment operations.  

The ‘other equity investments’ mainly refer to investing EU budget money – via implementing partners – 
in  venture  capital  or  other  types  of  investment  funds  for  pursuing  EU  policy  objectives:  for  example, 

65 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

enhancing  access  to  finance  for  start  up  SMEs,  research  and  innovation  as  well  as  infrastructure  both 
inside and outside the EU.  

Financial assets at FVSD non-derivatives by programme 

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

Budgetary Guarantee Funds: 
Common Provisioning Fund 

Financial Instruments financed 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 

Innovation Fund (IF) 

31.12.2022 
6 476 
2 015 
1 222 
 188 
 84 
9 985 

EUR million 
31.12.2021 
4 195 
1 257 
1 382 
 188 
 69 
7 091 

14 057 
14 057 

3 766 
 697 
 512 
 214 
 107 
 109 
 628 
6 031 
30 073 
25 534 
4 539 

11 272 
11 272 

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

The Innovation Fund was set up by Directive (EU) 2018/410 and establishes a system for the trading of 
greenhouse  gas  emission  allowances  within  the  Union.  The  purpose  is  to  use  the  revenue  to  support 
innovation  in  low-carbon  technologies  and  processes  in  certain  economic  sectors.  The  Innovation  Fund 
receives the revenue from the progressive monetisation of 450 million allowances and also any unspent 
funds from the 300 million allowances available for NER300 programme (see note 3.8). The EIB manages 
the monies, until they are used for the intended purpose, and invests them in debt securities. 

BUFI investments 

The Commission has established the Budget Fines fund (‘BUFI’) for managing the money it provisionally 
receives  for  competition  fines  under  appeal.  Until  the  final  court  decision,  the  Commission  invests  the 
money  in  debt  instruments.  During  2022,  a  fine  recipient  provisionally  paid  EUR  0.9  billion,  which  was 
invested in this fund – this is the main reason for the increase here. 

ECSC in Liquidation 

The  ECSC  Treaty  expired  on  23  July  2002  and  all  the  ECSC  assets  were  transferred  to  the  European 
Union and were earmarked for  research  in the sectors associated with the coal and steel industries, for 
example breakthrough technologies that  lead to near-zero-carbon steelmaking. The Commission invests 
the monies in debt securities, until they are granted for research. 

European Bank for Reconstruction and Development 

The  EU  holds  a  financial  investment  in  the  capital  of  the  European  Bank  for  Reconstruction  and 
Development (EBRD), in which the number of shares held at 31 December 2022 were 90 044 (2021: 90 
044 shares), representing 3% of the total subscribed share capital. The EU subscribed for a total amount 
of EUR 900 million of share capital, out of which EUR 713 million is currently uncalled. According to the 
agreement establishing  the  EBRD,  the  shareholders  have  some  contractual  restrictions  such  as  the  fact 
that the shares are not transferable and that their redemption is capped at the maximum of the original 
purchase  cost.  The EU  measures  its  investment in  the  EBRD  at  fair  value.  The original purchase  cost is 
considered the best estimate of the fair value, in particular due to the contractual restrictions referred to 

66 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

above.  Although  the  EBRD's  shares  are  not  quoted  on  any  stock  exchange  market,  there  were  recent 
transactions  in  the  investee's  equity  (issuance  of  capital  at  par  value),  indicating  that  cost  is  the  best 
estimate of the fair value in this situation. 

Common Provisioning Fund (CPF) 

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

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

The  CPF  allocates  the  incoming  contributions  into  compartments  depending  on  the  contributing 
programme.  The  legal  acts  of  the  programmes  set  out  the  necessary  provisioning  for  the  guarantees 
provided. The EU budget pools these individually provisioned funds in the CPF so as to optimise the asset 
management. 

As at 31 December 2022 the assets of the CPF were EUR 14.4 billion, out of which EUR 14.1 billion were 
invested in financial assets at FVSD non-derivatives (debt securities). 

Horizon 2020 and Horizon Europe 

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

 

 

 

 

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

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

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

The EIC Fund (European Innovation Council Fund)  which provides equity financing to accelerate 
innovation and market deployment actions. The EIC fund is funded from the Horizon Europe and 
H2020 programmes. To date, the investments mainly refer to the H2020 programme.  

Connecting Europe Facility 

Pursuant  to  Regulation  (EU)  No  1316/2013,  the  Connecting  Europe  Facility  (CEF)  debt  instrument  has 
been established with the objective to facilitate infrastructure projects’ access to financing in the sectors 
of transport, telecommunications and energy. It is managed by the EIB under an agreement with the EU. 
It offers risk sharing for debt financing in the form of senior and subordinated debt or guarantee as well 
as support for project bonds guaranteed by the EU.  

EU SME Equity Facilities 

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

67 

 
 
 
Fair value hierarchy of non-derivative financial assets at FVSD  

Annual accounts of the European Union 2022 

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 
24 677 
3 061 

2 335 

30 073 

EUR million 
31.12.2021 
19 336 
2 698 

2 190 

24 223 

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

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

Fair value movements 
Opening balance at 1.1.2022 
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 

EUR million 

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

The net losses for level 3 non-derivative assets held at end of 2022 were EUR 87 million (2021: net gains 
of EUR 295 million). They are included as financial revenue under ‘Gains on financial assets or liabilities 
at  FVSD  non-derivatives’  (see  note  3.9)  and  as  finance  costs  under  ‘Losses  from  on  financial  assets or 
liabilities at FVSD non- derivatives’ (see note 3.15). 

2.4.2.2.  Financial assets and liabilities at FVSD derivatives 

Financial assets and liabilities at FVSD derivatives by type 

Type of derivative 

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

Notional 
amount  

31.12.2022 
Fair Value 
Asset 

Fair Value 
Liability 

Notional 
amount  

31.12.2021 
Fair Value 
Asset 

Fair Value 
Liability 

EUR million 

 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) 
– 

Foreign currency forward contract  

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

68 

 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
Guarantees on equity portfolios 

Annual accounts of the European Union 2022 

The heading ‘Guarantee on equity portfolio’ comprises guarantees given by the EU to financial institutions 
on  portfolios  of  equity  investments.  These  guarantees  are  classified  as  derivative  financial  instruments 
and  accounted  for  as  a  financial  asset  or  financial  liability  at  fair  value  through  surplus  or  deficit  since 
they  do  not  meet  the  definition  of  a  financial  guarantee  liability  –  see  note  1.5.12.  The  EU  financial 
liability is measured based on the value of the underlying investments.  

The total amount represents mainly the EFSI guarantee given by the EU to the EIB Group with underlying 
equity  investments  disbursed  by  the  EIB  and  EIF  amounting  to  EUR  3.5 billion  (2021:  EUR  3.1 billion). 
The  fair  value  of  the  EU  guarantee  on  the  EFSI  equity  portfolios  totalled  EUR  967  million  (2021: 
EUR 763 million). 

Guarantee on foreign currency risk 

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

Fair value hierarchy of derivative financial assets and liabilities 

Type of derivative 

Level 1: Quoted prices in active markets 
Level 2: Observable inputs other than quoted 
prices 
Level 3: Valuation techniques with inputs not 
based on observable market data 
Total 

31.12.2022 

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. Derivatives in Fair Value Level 3 
include mainly guarantees on equity portfolios. 

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

Fair value movements 
Opening balance asset/(liability) as at 1.1.2022 
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 

EUR million 

 824 
 51 
– 
 (98) 
 181 
– 
– 
– 
 958 

The net gains for level 3 derivative assets held at end of 2022 were EUR 181 million (2021: net gains of 
EUR  777  million).  This  amount  is  included  under  ‘Gains  on  financial  assets  or  liabilities  at  FVSD 
derivatives’ in financial revenue (see note 3.9). 

69 

 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 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 

Note 

2.5.1 
2.5.2 

2.5.1 
2.5.2 

31.12.2022 

EUR million 
31.12.2021 

47 179 
 216 
 86 
47 482 

46 927 
6 087 
53 014 
100 496 

57 764 
2 901 
 126 
60 792 

28 427 
4 229 
32 656 
93 447 

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

2.5.1. 

Pre-financing 

Shared management 
     EAFRD & other rural  
     development instruments 
     ERDF & CF 

     ESF 

     Other 

Direct Management 

Implemented by:  

     Commission 

        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) 

29 812 

11 621 

8 063 

(4 932) 

(1 974) 

(4 498) 

24 880 

23 531 

9 647 

3 565 

9 085 

4 836 

(4 571) 

(1 823) 

(2 263) 

2 965 

18 960 

7 263 

2 572 

52 548 

(11 931) 

40 617 

40 624 

(8 865) 

31 760 

41 722 

28 347 

29 566 

 738 

(13 695) 

(5 389) 

(17 104) 

 (582) 

28 027 

22 958 

12 462 

 156 

46 494 

34 879 

(11 970) 

(4 065) 

23 931 

(15 030) 

1 140 

 (847) 

34 525 

30 814 

8 901 

 293 

72 026 

(31 381) 

40 645 

71 565 

(27 847) 

43 718 

2 892 

1 797 

12 488 

15 208 

(1 262) 

(1 275) 

(7 491) 

(9 513) 

1 631 

 522 

4 997 

5 695 

1 657 

1 874 

9 545 

12 992 

 (687) 

(1 261) 

(5 955) 

(7 453) 

32 385 

(19 540) 

12 845 

26 069 

(15 356) 

156 958 

(62 852) 

94 106 

138 258 

(52 068) 

47 179 

– 

109 778 

(62 852) 

47 179 

46 927 

57 764 

– 

80 494 

(52 068) 

 971 

 614 

3 590 

5 539 

10 713 

86 191 

57 764 

28 427 

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

For shared management, the largest part of pre-financing relates to the programming period 2014-2020. 
New pre-financing payments have been made in the cohesion area, mainly related to REACT EU (EUR 3.5 
billion) and the 2021-2027 programming period (EUR 5.4 billion).  

70 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

For  2014-2020  period  there  is  an  initial  pre-financing  which  can  only  be  cleared  (i.e.  recognised  in  the 
statement of financial performance) towards the closure part of the programming period and is shown as 
a non-current pre-financing. As we are approaching the end of the implementation period of this previous 
MFF and more amounts become due within 12 months, this initial prefinancing is gradually reclassified to 
current pre-financing and its clearing has also started. This situation is the main reason for the decrease 
in non-current pre-financing and a big factor in the increase in the current amount.  

For direct management, the biggest amounts of pre-financing are those related to the non-reimbursable 
support concerning the RRF instrument which began in 2021, EUR 23 billion net at year-end (2021: EUR 
30.8 billion). These have decreased as amounts have been cleared as milestones have been achieved by 
Member  States  during  2022.  The  other  significant  amounts,  in  total  EUR  13  billion  (2021:  EUR 8.5 
billion),  refer  to  the  Research  area  (mainly  Horizon  2020  and  Horizon  Europe,  implemented  by  the  EU 
executive  agencies  and  the  Commission);  as  the  new  MFF  is  gaining  speed,  more  grants  have  been 
awarded and consequently more pre-financing has been paid.  

For indirect management, the  pre-financing covers mainly  internal policies programmes like Galileo and 
EGNOS  (Space  Programmes),  but  also  instruments  related  to  Global  Europe  (including  neighbourhood, 
development  and  international  cooperation  instruments).  The  most  notable  increase  in  pre-financing 
under  this  heading,  EUR  1.1  billion,  is  related  to  Neighbourhood,  Development  and  Cooperation 
instrument and its precursors. Similar to the direct management pre-financing, the increase here relates 
mainly to the new payments made under the 2021-2027 programming period as it gathers pace. 

Guarantees received in respect of pre-financing 

These  are  guarantees  that  the  Commission  requests  in  certain  cases  from  beneficiaries  that  are  not 
Member States when making advance payments (pre-financing). There are two values to disclose for this 
type of guarantee, the ‘nominal’ and the ‘on-going’ values. For the nominal value, the generating event is 
linked to the existence of the guarantee. For the on-going value, the guarantee’s generating event is the 
pre-financing  payment  made  against  the  guarantee,  then  reduced  by  subsequent  clearings.  At  31 
December  2022  the  nominal  value  of  guarantees  received  in  respect  of  pre-financing  amounted  to 
EUR 518  million  while  the  on-going  value  of  those  guarantees  was  EUR 464  million  (2021:  EUR 433 
million and EUR 383 million respectively).  

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

At  31  December  2022,  pre-financing  amounts  covered  by  the  MIM  totalled  EUR 2.7 billion  (2021: 
EUR 2.4 billion). The MIM total assets, including financial assets managed by the Commission, amounted 
to EUR 2.6 billion (2021: EUR 2.5 billion).  

2.5.2.  Other advances to Member States 

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

31.12.2022 

EUR million 
31.12.2021 

3 390 

2 914 
6 303 
 216 
6 087 

3 647 

3 483 
7 130 
2 901 
4 229 

71 

 
 
 
 
 
 
 
Advances to Member States for financial instruments under shared management 

Annual accounts of the European Union 2022 

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

Under cohesion policy 2014-2020, out of EUR 17 181 million paid, it is estimated that EUR 3 303 million 
was  unused  at  31  December  2022.  This  includes  the  contribution  of  the  Member  States  to  the  SME 
Initiative,  an  instrument  aimed  at  stimulating  additional  lending  by  the  banking  sector  to  SMEs  (EUR 1 
449  million  paid  excluding  amounts  still  in  pre-financing,  out  of  which  EUR 292  million  is  estimated  as 
unused). 

For rural development, EUR 86 million remained unused at year-end. 

Aid Schemes 

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

For  the  MFF  2014-2020,  the  unused  amounts  at  year-end  were  estimated  at  EUR  1  198  million  for 
cohesion policy and EUR 1 670 million for agriculture and rural development. 

72 

 
 
 
 
Annual accounts of the European Union 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 

16 339 
2 532 
18 870 

25 832 
3 497 
29 329 
48 199 

34 892 
5 750 
40 642 

29 473 
2 323 
31 796 
72 438 

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 

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

73 

 503 
14 810 
1 011 
 15 
16 339 

6 036 
9 061 
9 420 
1 239 
 75 
25 832 
42 170 

2 497 
30 839 
1 556 
– 
34 892 

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

31.12.2022 
4 397 
1 356 
 7 
 (686) 
– 
5 073 
1 621 

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

 189 

 (591) 
1 219 
 13 
 54 
 180 
6 539 
 503 
6 036 

 668 

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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

The  non-current  amounts  due  from  Member  States  relate  mainly  to  non-executed  conformity  clearance 
decisions for the  European  Agricultural Guarantee Fund (EAGF) as  well as for the European  Agricultural 
Fund  for  Rural  Development  (EAFRD).  The  amounts  related  to  these  decisions  are  being  recovered  in 
annual instalments. 

Own resources recoverables 

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

The ‘A accounts’ have tended to have a level in the range of EUR 3 to 4 billion at year-end. However, in 
2021  the  amounts  were  significantly  higher  as  they  included  TOR  amounts  related  to  undervaluation 
cases. The evolution in 2022 is mainly explained by the payments received in relation to these cases as 
well as the adjustments of the debts following a Court judgement. 

In  the  UK  infringement  case  (Infringement  No  2018/2008),  on  8  March  2022,  the  Court  issued  the 
related judgement and confirmed  that the UK  had  infringed its obligations to protect the Union budget. 
The  case  originated  in  a  2017  OLAF  report,  that  found  that  importers  in  the  UK  had  evaded  a  large 
amount of customs duties by using fictitious and false invoices and incorrect customs value declarations 
at  the  time  of  importation.  Based  on  a  methodology  developed  by  OLAF  and  the  JRC,  and  on  the 
information  available,  the  Commission  estimated  that  the  infringement  by  the  UK  resulted,  during  the 
period November 2011 to October 2017, in losses to the EU budget amounting to EUR 2.1 billion (net, i.e. 
after deducting the collection costs of 20% to be retained by the UK from the gross amount of EUR 2.7 
billion).  The  Court  broadly  supported  the  Commission’s  claim  in  its  judgment,  but  requested  the 
Commission  to  re-calculate  the  amount  due  by  taking  into  account  additional  elements  for  the 
quantification  of  the  customs  duties  losses.  In  June  2022  UK  paid  a  provisional  amount  to  the 
Commission. 

The Commission has assessed the judgment and in particular the comments of the Court with respect to 
the  determination  of  the  amounts  due.  Following  a  detailed  analysis,  the  final  principal  amount  was 
established  at  EUR  1.6  billion  (net  amount  after  deduction  of  20%  collection  costs).  The  UK  paid  the 
oustanding  amount  in  January  2023.  Consequently,  late  payment  interest  was  also  recalculated 
amounting  to  EUR  1.4  billion,  which  was  paid  by  the  UK  in  February  2023.  Both  payments  were  made 
after  the  deduction  of  the  UK  share  under  the  provisions  of  the  Withdrawal  Agreement  (see  note 
2.6.1.2). 

Following these payments, the Commission closed the infringement case on 15 February 2023. 

Applying the same parameters for the recalculation of the estimated TOR losses due by the 27  Member 
States  for  textiles  and  footwear  imported  from  China  at  significantly  understated  value,  a  negative 
adjustment  of  EUR  0.6  billion  has  been  applied  to  the  recoverables  at  31  December  2022.  Further 
clarifications  with  Member  States  are  ongoing  to  establish  the  final  amounts  due.  The  late  payment 
interest due in relation to these cases is currently estimated at EUR 0.6 billion. 

‘Separate  accounts’  refers  to  established  entitlements  that  have  not  been  included  in  the  ‘A  accounts’, 
because  they  have  not  been  recovered  by  Member  States  and  no  security  (i.e.  guarantee)  has  been 
provided (or security has been provided but the amounts are contested). These entitlements are subject 
to impairment based on information provided every year by the Member States. The impairment amounts 
represent generally a similar percentage of the principal amount at each year-end. 

EAGF and Rural Development recoverables 

This item primarily covers the amounts owed by Member States at 31 December 2022, as declared and 
certified by the Member States as at 15 October 2022. An estimation is made for the recoverables arising 
after this declaration and up to 31 December 2022. The Commission also estimates a write-down for the 
amounts  owed  by  beneficiaries  that  are  unlikely  to  be  recovered.  The  fact  that  such  an  adjustment  is 
made does not mean  that the Commission  is waiving  future recovery of these  amounts. A deduction of 
20% is also included in the adjustment and corresponds to what Member States are allowed to retain to 
cover administrative costs. 

74 

 
 
 
2.6.1.2.  UK Withdrawal Agreement 

Annual accounts of the European Union 2022 

The ‘Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the 
European  Union  and  the  European  Atomic  Energy  Community’  (ref.  2019/C  384  I/01)  (the  ‘Withdrawal 
Agreement’ or ‘WA’) signed between the EU and the UK establishes various financial obligations on both 
parties. As at 31 December 2022, the net receivable from the UK based on these obligations amounted to 
EUR  23 871  million (2021: EUR  41 753 million), of  which  EUR  9 061  million  is to  be  paid  within the 12 
months following the reporting date (2021: EUR 10 913 million): 

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

UK share (Article 139) 

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 

According  to  Article  139,  the  United  Kingdom's  share  of  the  financial  obligations  arising  out  of  the  WA 
shall  be  a  percentage  calculated  as  the  ratio  between  the  own  resources  made  available  by  the  United 
Kingdom  in  the  years  2014  to  2020  and  the  own  resources  made  available  during  that  period  by  all 
Member States and the United Kingdom as adjusted by the amount communicated to the Member States 
final  United  Kingdom  share  has  been  calculated  as  being 
before  1  February  2022.  The 
12.431681219587700%. 

Payments under the Withdrawal Agreement 

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

In 2022 the total amount reported to the UK under Article 136, and Articles 140 to 147, was EUR 9 815 
million (2021: EUR 11 930 million), of which EUR 3 418 million was reported in April 2022 and EUR 6 397 
million was reported in September 2022 (2021: EUR 3 763 million and EUR 8 166 million, respectively). 

The total payments received in 2022 amounted to EUR 10 921 million (2021: EUR 6 826 million). Out of 
this amount, EUR 5 104 million related to the remainder of the September 2021 report and was paid in 
five  equal  instalments  in  the  period  January  to  May  2022  (2021:  nil),  EUR  3 418  million  related  to  the 
2022 April report and was paid in four equal monthly instalments in the period June to September 2022 
(2021: EUR 3 763 million), and EUR 2 399 million related to the 2022 September report and was paid in 
three equal instalments in the period October to December (2021: EUR 3 062 million). 

75 

 
 
 
 
   
 
 
 
EUR million 

Total 
payments 
in 2022 
11 556 
 265 
 37 
 6 
11 864 

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

Annual accounts of the European Union 2022 

Remainder of 
September 2021 
report: 

(due and paid from 
January to May 
2022) 

April 2022 
report 

September 2022 
report: 

(due and paid 
from June to 
September 2022) 

(due and paid 
from October to 
December 2022) 

Article 140 
Article 142 
Article 136 
Article 147 

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

Total 

5 090 
 18 
 29 
– 
5 138 

– 
 (34) 
– 
– 
– 
– 
 (34) 

5 104 

4 029 
 236 
– 
 6 
4 271 

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

3 418 

2 437 
 11 
 7 
– 
2 455 

– 
 (56) 
– 
– 
– 
– 
 (56) 

2 399 

10 921 

The remaining balance  of the  September 2022  invoice  at the end  of  the  year,  amounting  to EUR  3 998 
million, was paid in five equal monthly instalments in the period January to May 2023 (2022: EUR 5 104 
million). 

Article 140 – Outstanding Commitments 

The  UK  has  committed  to  pay  to  the  EU  its  share  of  the  outstanding  budgetary  commitments  at  31 
December  2020  (the  so  called  ‘Brexit  RAL’),  as  adjusted  by  the  requirements  of  Article  140.  At  31 
December  2022,  the  total  amount  recognised  as  a  receivable  amounted  to  EUR  17 029  million  (2021: 
EUR 28 620 million), of which EUR 8 563 million is payable within the 12 months following the year-end. 
The following table presents the main movements between the total amount recognised as a receivable 
at 31 December 2021 and the total amount recognised as a receivable at 31 December 2022: 

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 

EUR million 

28 620 

 (123) 

– 

(11 556) 

 88 

17 029 

8 465 
8 563 

The  year-on-year  decrease  of  the  total  amount  recognised  as  a  receivable  amounted  to  EUR  11 591 
million and was mainly due to the payments received from the UK in 2022 (EUR 11 556 million). 

The  total  deduction  for  net  financial  corrections  related  to  2014-2020  or  previous  programme  periods, 
amounting to EUR 123.5 million, comprises the amounts invoiced in September 2022 which were not yet 
included  in  the  2021  annual  accounts  (EUR  39.1  million,  payable  from  January  to  May  2023)  and  the 
amounts  to  be  invoiced  in  September  2023  and  payable  from  October  2023  to  May  2024  (EUR  84.4 
million). 

The total deduction for TOR relating to 2020 and made available to the Union in 2022 amounted to zero, 
as there were no adjustments to the amounts already invoiced and no known amounts to be included in 
the April 2023 or September 2023 invoice. 

76 

 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

The  amount  to  be  paid  within  12  months  from  the  reporting  date  (EUR  8 563  million),  comprises  the 
remaining balance of the September 2022 invoice (EUR 4 061 million), the amount to be invoiced in April 
2023 (EUR 2 647 million) and the amount to be invoiced in September 2023 and payable in the period 
October to December 2023 (EUR 1 855 million). The amount invoiced in April 2023 is composed of EUR 
2 515 million relating to the UK’s share of the estimated RAL implementation in 2023 and EUR 132 million 
relating to the adjustment of the UK share of the RAL due to implementation in 2022. The amount to be 
invoiced  in  September  2023  and  payable  in  the  period  October  to  December  2023  is  made  up  of  EUR 
1 887 million relating to the UK’s share of the estimated RAL implementation in 2023 and EUR 32 million 
relating to the deductions for net financial corrections. 

The  estimated  non-implementation  has  been  adjusted  by  EUR  88  million  to  reflect  the  actual 
decommitments  in  2021  and  2022  as  well  as  the  estimated  decommitments  of  the  remaining  stock  of 
Brexit-RAL at year-end 2022. 

Article 142 – Union liabilities at end 2020 

The  UK  has  committed  to  pay  the  EU  its  share  of  Union  liabilities  at  end  2020  with  the  exception  of 
liabilities:  (a)  with  corresponding  assets  and  (b)  relating  to  the  operation  of  the  budget  and  the 
management of own resources (including amounts already covered by the outstanding commitments, see 
Article 140 above). The main amount here concerns the EU post-employment benefit liabilities (pensions 
and sickness insurance) existing at 31 December 2020.  

Outstanding 2020 liabilities under Article 142 (6) 

Outstanding 2020 liabilities 
UK Share 

PSEO/JSIS contributions 

Total 

Non-current 
Current 

Pension Scheme 
of European 
Officials 
67 840 
8 434 
250 

Joint Sickness 
Insurance 
Scheme 
5 168 
 642 
9 

8 684 

8 434 
 250 

 651 

 642 
 9 

EUR million 

31.12.2022 

31.12.2021 

73 008 
9 076 
 259 

114 507 
14 235 
236 

9 335 

14 471 

9 076 
 259 

14 235 
 236 

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

The UK share of the net payments made from the Union budget in 2022 to the beneficiaries of the PSEO 
and  to  JSIS  amounted  to  EUR  250  million  and  EUR  9  million,  respectively.  These  amounts  were 
communicated  to  the  UK  as  part  of  the  April  2023  invoice  (and  thus  be  payable  in  four  equal  monthly 
instalments in the period June to September 2023).  

In  addition,  at  31  December  2022  the  outstanding  2020  UK  liabilities  under  Article  142 (6),  relating  to 
the  Pension  Scheme  of  the  European  Officials  (PSEO)  and  the  Joint  Sickness  Insurance  Scheme  (JSIS) 
amounted  to  EUR  8 434  million  and  EUR  642  million,  respectively  (2021:  EUR  13 032  million  and  EUR 
1 203  million).  The  decrease  for  the  PSEO  and  JSIS  scheme  was  driven  by  the  actuarial  gain  from 
changes in financial assumptions – see note 2.9 for more details. It is noted that while actuarial gains (or 
losses) from changes in financial assumptions impact the present value of the outstanding 2020 liabilities 
calculated on the basis of IPSAS 39/EAR 12,  they do not change either the amount of benefits that will 
have  to  be  actually  paid  by  the  EU,  or,  by  implication,  the  UK  contributions  to  these  payments  as  due 
under the default settlement mechanism of Article 142 (6). 

As  at  31  December  2022,  the  UK  has  not  made  use  of  the  early  settlement  option  providing  for  the 
payment of the outstanding 2020 PSEO and JSIS liabilities, calculated using actuarial valuations made in 
accordance with  IPSAS 39/EAR 12, in five  equal instalments following the procedure laid out in the last 
subparagraph of Article 142 (6). 

77 

 
 
 
 
 
 
 
 
Outstanding 2020 liabilities under Article 142 (5) 

Annual accounts of the European Union 2022 

According  to  Article  142 (5),  the  UK  contributes  to  the  liabilities  relating  to  the  Other  retirement 
(pension) schemes as they were recorded in the consolidated accounts of the Union for the financial year 
2020  in  10  instalments  starting  on  31  October  2021  (with  each  annual  instalment  payable  in  eight 
monthly instalments from October to May the following year). These liabilities in the consolidated annual 
accounts of the Union for the financial year 2020 amounted to EUR 2 344 billion, resulting in a UK share 
at 31 December 2020 of EUR 291 million. Taking into account the amounts received from the UK up until 
year-end  2022,  totalling  EUR  40  million,  the  outstanding  UK  share  of  the  Other  retirement  (pension) 
schemes decreased to EUR 251 million at 31 December 2022, of which EUR 29 million is to be paid within 
the 12 months following the year-end. 

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

Other articles 

Due from the UK: 

Article 136 
Article 147 

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

Total 
Non-current 
Current 

31.12.2022 

EUR million 
31.12.2021 

– 
 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) 

Article 136 – Provisions applicable in relation to own resources 

Article  136  establishes  the  provisions  applicable  after  31  December  2020  in  relation  to  own  resources. 
The UK is entitled to receive or obliged to pay, as the case may be, its share where the own resources 
related to the financial years up to and including 2020 are to be made available, corrected or subject to 
adjustments after 31 December 2020. Thus, the UK is subject to any adjustments of VAT and GNI own 
resources that relate to the financial years up to and including 2020. These VAT and GNI adjustments will 
however  only  be  made  if  decided  upon  no  later  than  31  December  2028.  The  updates  of  the  UK 
corrections of 2018-2019 are also to be taken into account. 

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

Between January and February 2023 the United Kingdom paid an outstanding debt originating in a case 
where  importers  in  the  UK  had  evaded  a  large  amount  of  customs  duties  by  using  fictitious  and  false 
invoices  and  incorrect  customs  value  declarations  at  importation.  The  principal  and  the  related  late 
interest totalled EUR 1.6 billion and EUR 1.4 billion respectively (see note 2.6.1.1). The UK share defined 
in  Article  139  of  the  Withdrawal  Agreement  amounted  to  EUR  370  million  and  was  offset  with  the 
payments received from the UK in 2023. 

The  net  outstanding  amount  due  from  the  EU  to  the  UK  at  31  December  2022  is  EUR  678  million,  of 
which EUR 699 million will have to be paid by the UK within the 12 months following  the year-end and 
EUR 1 377 million will have to be paid by the EU to the UK afterwards: 

78 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

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 

EUR million 

 557 
 20 
 (370) 
 536 

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

(1 377) 

 699 

It is noted that the amount of EUR 699 million to be paid by the UK within the next 12 months following 
the  year-end  includes  the  deduction  of  the  EUR  370  million  relating  to  the  customs  case  mentioned 
above.  As  this  amount  was  settled  separately  from  the  invoice  mechnanism,  it  was  not  included  in  the 
April 2023 invoice. 

Article 141 – Fines 

The UK is entitled to its share of fines decided before 31 December 2020 and also those decided upon by 
the  Union  after  31  December  2020  in  a  procedure  referred  to  in  Article  92 (1)  when  these  become 
definitive.  The  amount  of  UK  relevant  fines  which  were  outstanding  at  31  December  2022  is  EUR  12.4 
billion (2020: EUR 13.8 billion). The decrease of EUR 1.4 billion is mainly due to the net decrease in fines 
of EUR 1.3 billion (EUR 0.2 billion of fines issued in 2022 less EUR 1.5 billion of fines confirmed and paid, 
reduced or cancelled by court decisions during 2022) and the increase in the impairment of fines of EUR 
0.1  billion.  The  UK  share  of  the  UK  relevant  fines  outstanding  at  31  December  2022  is  EUR  1.5  billion 
(2021:  EUR  1.7  billion),  out  of  which  an  amount  of  EUR  5.4  million  will  be  included  in  the  September 
2023 invoice and paid to the UK in the period October 2023 to May 2024. In addition, the UK is entitled 
to its share of definitive fines which were no longer outstanding at 31 December 2022  (EUR 7.5 million, 
also to be included in the September 2023 invoice and paid to the UK in the period October 2023 to May 
2024) and its share of definitive fines that were invoiced in September 2022 but not yet paid at year-end 
(EUR 93.7 million, paid to the  UK  in the period  January to May 2023). The total UK  share of fines thus 
amounts  to  EUR  1.6  billion  (2021:  1.8  billion),  of  which  EUR  98.6  million  is  to  be  paid  within  the  12 
months following the reporting date (2021: EUR 90.2 million). 

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

Under this article the UK shall be liable to fund its share of the contingent liabilities of the EU in relation 
to its borrowing, lending and guarantee activities should these crystallise and should they not be covered 
by existing guarantee funds – see note 4.1 for the related contingent liabilities. The EU will refund to the 
UK amounts which the UK has already contributed to guarantee funds and which are no longer needed. 
The UK also has a right to the reflows from operations for which it shares the liability. At 31 December 
2022 the amount to be paid to the UK, all within the next 12 months, is EUR 313 million (2021: EUR 163 
million). This amount comprises the UK share of the recoveries and net revenues collected in 2022 (EUR 
79.5  million),  the  excess  in  provisioning  (EUR  216.2  million),  the  impact  of  the  adjustment  due  to  the 
changed treatment of losses from asset management (EUR 16.9 million), as well as another adjustment 
for amounts recovered in 2021 for ELM, which were identified during the agreed-upon review procedures 
(EUR 7 011). 

Articles 144 – Financial instruments 

Under  this  article,  the  EU  has  committed  to  refund  to  the  UK  its  share  of  the  reflows  stemming  from 
financial operations approved by the withdrawal date, as well as its share of the disbursements made to 
financial operations approved after the withdrawal date. At 31 December 2022 the amount to be paid to 
the UK, all within the next 12 months, is EUR 54 million (2021: EUR 73 million). This amount includes a 
deduction of EUR 215 resulting from a foreign exchange rate correction related to 2021. 

79 

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

Annual accounts of the European Union 2022 

The UK is entitled to its share of the net assets of ECSC in Liquidation at 31 December 2020, to be paid 
back in five instalments on 30 June each year, starting in 2021. The net assets of the ECSC in Liquidation 
at 31 December  2020 amounted to  EUR 1.5  billion of  which the UK  share  is EUR 184 million. Following 
the  payment  of  the  second  instalment  of  EUR  37  million  in  2022,  the  outstanding  amount  at  31 
December 2022 is EUR 111 million (2021: EUR 148 million), of which EUR 37 million is to be paid within 
12 months following the reporting date.  

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

The  UK  is  entitled  to  its  share  of  the  EU’s  investment  in  the  paid-in  share  capital  of  the  EIF  at  31 
December  2020,  to  be  paid  back  in  five  instalments  on  30  June  each  year,  starting  in  2021.  The  EU’s 
investment in the EIF paid-in share  capital  at 31 December  2020  was EUR  267 million of which the UK 
share is EUR 33 million. Following the payment of the second instalment of EUR 7 million, the outstanding 
amount at 31 December 2022 is EUR 20 million (2021: EUR 27 million), of which EUR 7 million is to be 
paid within 12 months following the reporting date.  

Article 147 – Legal cases 

The  UK  has  committed  to  contribute  its  share  of  EU  payments  arising  from  legal  cases  concerning  the 
financial  interests  of  the  Union  that  become  due,  provided  that the  facts  forming  the  subject  matter of 
those cases occurred no later than 31 December 2020. Taking into account the provisions and accruals at 
year-end, as well as actual payments made by the EU for legal cases in 2022 the estimated amount that 
the UK will have to pay is EUR  68 million (2021: EUR 53 million), of which EUR 18 million is to be paid 
within 12 months following the reporting date. 

2.6.1.3.  Recoverables from competition fines 

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

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

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

Fined companies who have launched or are planning to launch an appeal have an option to either make 
provisional payments or to provide bank guarantees to the Commission. For the total outstanding fines at 
year-end, EUR 2 980 million (2021: EUR 2 100 million) has been received as provisional payments while 
EUR 9 066 million (2021: EUR 11 067 million) of guarantees have been received.  

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

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

2.6.1.4.  Accrued income and deferred charges 

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

31.12.2022 
1 936 
 315 
2 250 
1 011 
1 239 

EUR million 
31.12.2021 
2 313 
 340 
2 653 
1 556 
1 097 

Accrued income includes EUR 1.8 billion (2021: EUR 2 billion) that the Commission expects to recover in 
the area of cohesion as a result of the examination and acceptance of the annual accounts submitted by 
the  Member  States.  The  biggest  part of  this  amount  (EUR  1  billion)  is  expected  to  be  recovered  at  the 

80 

 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

closure of the underlying programmes only (as a consequence of the Coronavirus Response Investment 
Initiative measures) and therefore is classified as non-current.  

2.6.2.  Receivables from exchange transactions 

Non-current 
Financial guarantee receivable 
Late payment interest 
Other receivables 

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

Total 

31.12.2022 

EUR million 
31.12.2021 

1 832 
 597 
 103 
2 532 

 369 
 288 
 (171) 
 291 
2 554 
 167 
3 497 
6 029 

2 630 
3 052 
 68 
5 750 

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

The  late  payment  interest  concerns  mainly  own  resources  cases  and  accrued  interest  on  guarantees 
provided  by  fined  companies.  The  decrease  in  the  late  payment  interest  is  linked  mainly  to  the 
recalculations that took place following the Court judgement on the undervaluation case mentioned under 
note 2.6.1.1. The amount related to the UK on this undervaluation case is shown as a current receivable 
(EUR  1.4  billion),  while  the  non-current  amount  of  the  late  payment  interest  (EUR  0.6  billion)  relates 
exclusively to Member States. 

The financial guarantee contract (FGC) receivable represents the future remuneration the EU expects to 
receive  for  guarantees  given.  The  majority  of  the  EU  guarantees  are  non-remunerated  or  priced  below 
the  market  rate.  Therefore  the  FGC  receivable  is  significantly  smaller  than  the  FGC  liability  (see  note 
2.11.2).  Out of the total amount of  EUR  2 201  million of the  FGC  receivable  as at 31 December  2022, 
EUR 2 198 million is classified as financial assets at FVSD (Fair value level 3). Compared to the opening 
balance as at 1 January 2022 of EUR 3 115 million, in total the FGC receivable has decreased by EUR 914 
million, of which EUR 344 was due to guarantee premiums received in 2022 and EUR 571 million to lower 
guarantee premiums expected to be received in the future. 

2.7.  INVENTORIES  

Scientific materials 
Other 
Total 

31.12.2022 
 54 
 28 
 82 

EUR million 
31.12.2021 
 58 
 26 
 84 

81 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
Annual accounts of the European Union 2022 

2.8.  CASH AND CASH EQUIVALENTS 

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

Total 

Note 

2.8.1 
2.8.2 
2.8.3 
2.8.4 

EUR million 
31.12.2022  31.12.2021 
20 121 
 453 
 8 
– 
20 582 
18 027 
2 838 
1 953 
1 396 
 65 

21 413 
 178 
 8 
– 
21 598 
19 929 
2 713 
 914 
1 344 
 47 

46 544 

44 860 

2.8.1.  Bank accounts for budget implementation 

This  heading covers the  funds  which  the  Commission  keeps in its bank  accounts in  each  Member State 
and  EFTA  country  (treasury  or  central  bank),  as  well  as  in  commercial  bank  current  accounts,  imprest 
accounts  and  petty  cash  accounts.  The  treasury  balance  at  the  end  of  2022  is  driven  by  the  following 
main elements: 

  An amount of EUR 10.9 billion non-implemented budget appropriations at year-end, of which EUR 
8 billion relates to assigned revenues, EUR 0.6 billion relates to NGEU credits and EUR 2.3 billion 
relates to payment appropriations (including EUR 0.6 billion of EAGF); 

  An amount of EUR 3.2 billion belonging to agencies’ treasuries managed by the Commission that 

has not been spent at year end; 

  An amount of EUR 5.2 billion additional traditional own resources cashed not budgeted; and 

  An amount of EUR 0.5 billion of definitive fines not yet budgeted. 

2.8.2.  NGEU 

NGEU holds cash on a bank account at the European Central Bank (ECB). With the implementation of the 
diversified  funding  strategy  in  the  NGEU  instrument  –  see  note  2.11  –  the  cash  balance  in  the  NGEU 
instrument is substantial and reached EUR 19.9 billion as at 31 December 2022 (EUR 18 billion in 2021). 
The  high  cash  balance  is  kept  with  the  objective  of  ensuring  that  amounts  held  on  the  NGEU  bank 
account are sufficient to meet all upcoming disbursement needs and to maintain a defined safety buffer, 
while avoiding any excess balances. 

2.8.3. 

Financial instruments 

Amounts shown under this heading primarily concern cash equivalents managed by fiduciaries on behalf 
of  the  Commission  for  the  purpose  of  implementing  particular  financial  instrument  programmes  funded 
by the  EU  budget:  EUR  1.9  billion as at 31 December 2022, of which EUR  0.6  billion relates to COSME 
Loan  Guarantee  Facility  (COSME  LGF)  –  see  note  4.1.2.  It  also  includes  EUR  0.3  billion  cash  and  cash 
equivalents  held  in  the  CPF  and  not  yet  invested  in  securities  at  year-end  and  EUR  0.4  billion  cash 
equivalents (short term commercial papers) belonging to the Innovation Fund managed by the EIB – see 
note  2.4.2.1.  This  heading  does  not  cover  the  CPF  related  liquidity  buffer  (EUR  0.3  billion  as  at  31 
December  2022),  which  is  held  in  the  Commission’s  central  treasury.  Cash  belonging  to  financial 
instruments can only be used by the programmes concerned. 

82 

 
 
 
 
 
 
 
 
 
 
 
 
 
2.8.4. 

Fines 

Annual accounts of the European Union 2022 

This is mainly cash received in connection with fines issued by the Commission for which the case is still 
open.  These  amounts  are  kept  in  specific  deposit  accounts  that  are  not  used  for  any  other  activities. 
Where an appeal has been lodged or when it is unknown if an appeal will be made by the fined company, 
the  underlying  amount  is  shown  as  contingent  liability  in  note  4.2.1.  Since  2010,  all  subsequent 
provisionally  cashed  fines  are  managed  by  the  Commission  in  the  BUFI  fund  and  invested  in  financial 
instruments  categorised  as  financial  assets  at  FVSD  non-derivatives  (see  note  2.4.2).  The  decrease  of 
cash relating to fines at 2022 year-end is due to the reimbursement to Intel of its provisionally paid fine 
of EUR 1 060 million in February 2022 following the judgement of the General Court of the EU in the Intel 
Corporation vs Commission case.  

83 

 
 
Annual accounts of the European Union 2022 

LIABILITIES 

2.9.  PENSION AND OTHER EMPLOYEE BENEFITS 

2.9.1.  Net employee benefit scheme liability 

Pension 
Scheme of 
European 
Officials 
73 126 
N/A 
73 126 

Other 
retirement 
benefit 
schemes 
1 880 
 (63) 
1 817 

Joint Sickness 
Insurance 
Scheme 

31.12.2022 
Total 

EUR million 
31.12.2021  
Total 

6 064 
 (390) 
5 674 

81 070 
 (453) 
80 617 

122 926 
 (460) 
122 466 

Defined Benefit Obligation 
Plan assets 
Net liability 

The large decrease in the total employee benefits liability is primarily driven by the decrease in the net 
liability  of  the  Pension  Scheme  of  European  Officials  (PSEO),  the  largest  scheme  in  place.  This  PSEO 
liability  has  decreased  mainly  because  of  the  actuarial  gains  from  changes  in  the  underlying  financial 
assumptions (see note 2.9.4). This has been driven by a sharp increase in the real discount rate in the 
year,  which  turned  positive  again  after  having  been  negative  for  three  consecutive  years.  It  must  be 
noted,  however,  that  while  an  increase  or  a  decrease  in  the  real  discount  rate  impacts  the  size  of  the 
liability at year-end, it does not change the amount of benefits that will have to be actually paid from the 
EU budget to the beneficiaries in future years.  

The resulting decrease in the liability was partially offset by an increase caused by the fact that the rights 
accrued during the year due to service are higher than the benefits paid out during the year. There is also 
an increase due to the annual interest cost (unwinding of the liability discounting). 

Pension Scheme of European Officials 

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

In  accordance  with  Article  83  of  the  Staff  Regulations,  the  payment  of  the  benefits  provided  for  in  the 
staff  pension  scheme  constitutes  a  charge  to  the  EU  budget.  The  scheme  is  notionally  funded,  and  the 
Member States guarantee the payment of these benefits collectively. A compulsory pension contribution 
is deducted from the basic salaries of active members, currently 10.1%. These contributions are treated 
as budget revenue of the year and contribute to the funding of EU expenditure in general, see also note 
3.8. 

The  liabilities  of  the  pension  scheme  were  assessed  on  the  basis  of  the  number  of  PSEO  staff  (active 
staff,  retirees,  former  active  staff  now  on  invalidity  and  dependants  of  deceased  staff)  at  31 December 
2022 and on the rules of  the Staff Regulations applicable at this date. This valuation  was carried out in 
accordance with the accounting provisions of IPSAS 39 (and therefore also EU accounting rule 12). 

Other retirement benefit schemes 

This refers to the liability relating to the pension obligations towards Members and former Members of the 
Commission,  the  European  Court  of  Justice  and  the  Court  of  Auditors,  the  Council,  the  European 
Ombudsman,  and  the  European  Data  Protection  Supervisor.  Also  included  under  this  heading  are 
liabilities relating to the pensions of Members of the European Parliament. 

Joint Sickness Insurance Scheme 

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

84 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

calculation of this liability takes account of the full active service period, ensuring that both the pension 
and the sickness insurance schemes of the staff’s post-employment plan are accounted for consistently. 
Taking into account the obligation to faithfully present the economic substance of the underlying situation 
as  required  by  both  EAR  and  IPSAS,  IPSAS  39  has  not  been  interpreted  in  a  stricter  sense  when 
attributing  the  benefits  to  the  periods  of  service.  If  the  service  cost  were  to  be  accrued  for  the  JSIS 
scheme fully over 10 years for all officials, as opposed to the period of active service of the employee, the 
impact of such an approach on the defined benefit obligation at year-end would be an increase of EUR 1.2 
billion. However, as already indicated, this stricter approach would not be compatible with the qualitative 
characteristic of faithful representation, and thus would not be deemed to provide reliable information in 
accordance  with  EAR  1  and  the  IPSAS  Conceptual  Framework.  This  estimate  is  highly  sensitive  to  the 
evolution of current staff administrative status (in particular, the number of fixed-term contract members 
assumed to become officials in the future). 

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

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

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

Present value as at 31.12.2021 
Recognised in statement of 
financial performance 
Current Service Cost 
Interest cost 
Past Service Cost 
Recognised in net assets 
Remeasurements in employee benefits 
liabilities 
     Actuarial (gains)/losses from 
     experience 
     Actuarial (gains)/losses from  
     demographic assumptions 
     Actuarial (gains)/losses from 
     financial assumptions 
Other 
Benefits paid 
Present value as at 31.12.2022 

Pension Scheme 
of European 
Officials  
109 679 

Other 
retirement 
benefit schemes 
2 600 

Joint Sickness 
Insurance 
Scheme 
10 647 

EUR million 
Total 

122 926 

4 575 
1 096 
– 

1 226 

 78 

 118 
 18 
 28 

 54 

 1 

 310 
 106 
– 

5 003 
1 220 
 28 

 (267) 

1 014 

 11 

 91 

(41 533) 

 (862) 

(4 642) 

(47 036) 

(1 996) 
73 126 

 (78) 
1 880 

 (102) 
6 064 

(2 176) 
81 070 

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

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

Actuarial gains and losses from experience refer to the effects of differences between what was expected 
according to the assumptions made last year for 2022 and what really occurred in 2022. 

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

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

85 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.9.3. 

Plan assets 

Annual accounts of the European Union 2022 

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

Other retirement 
benefit schemes 
 74 
 (11) 
 63 

Joint Sickness 
Insurance Scheme 
 386 
 5 
 390 

EUR million 
Total 

 460 
 (7) 
 453 

2.9.4.  Actuarial assumptions – employee benefits 

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

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

2022 

3.6% 
2.4% 
1.1% 
1.5% 

63/64/66 

3.6% 
2.4% 
1.1% 
1.6% 
2.3% 

63/64/66 

2021 

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

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

Mortality  rates  for  2022  are  based  on  the  EU  Civil  Servants  Life  Table  –  EULT  2018,  incorporating  a 
dynamic trend over a 20 year horizon. 

The nominal discount rate is determined as the value of the Euro zero-coupon yield (with a maturity of 18 
years as of December 2022  for the PSEO, and 20  years for the Joint Sickness Insurance  Scheme). The 
inflation  rate  used  is  the  expected  inflation  rate  over  the  equivalent  period.  It  must  be  determined 
empirically,  based  on  prospective  values  as  expressed  by  index-linked  bonds  on  the  European  financial 
markets. The real discount rate is calculated from the nominal discount rate and the expected long-term 
inflation rate. 

In 2022 the sharp increase in the nominal rates resulted in an overall increase in the real discount rate, 
thus changing the previously observed negative trend and contributing to the significant actuarial  gains 
from financial assumptions in the year. 

2.9.5.  Sensitivity analysis  

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

Pension Scheme of European Officials sensitivity 

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

Defined benefit obligation 

Increase 0.1%  Decrease 0.1% 
1 352 

(1 316) 

Increase 0.1%  Decrease 0.1% 
2 544 

(2 464) 

2022 

EUR million 

2021 

86 

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

Annual accounts of the European Union 2022 

Defined benefit obligation 

Increase 0.1%  Decrease 0.1% 
(1 280) 

1 312 

Increase 0.1%  Decrease 0.1% 
(2 345) 

2 414 

2022 

EUR million 

2021 

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

2022 

2021 

EUR million 

Defined benefit obligation 

  One year increase  One year decrease  One year increase  One year decrease 
1 527 

(1 155) 

 (727) 

 988 

Joint Sickness Insurance Scheme sensitivity 

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

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

2022 

EUR million 

2021 

Increase 0.1%  Decrease 0.1% 

Increase 0.1%  Decrease 0.1% 

 10 

 (10) 

 13 

 (12) 

 148 

 (144) 

 317 

 (307) 

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

Defined benefit obligation 

Increase 0.1%  Decrease 0.1% 
 121 

 (118) 

Increase 0.1%  Decrease 0.1% 
 274 

 (265) 

2022 

EUR million 

2021 

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

Defined benefit obligation 

Increase 0.1%  Decrease 0.1% 
 22 

 (23) 

Increase 0.1%  Decrease 0.1% 
 41 

 (42) 

2022 

EUR million 

2021 

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

2022 

2021 

EUR million 

Defined benefit obligation 

  One year increase  One year decrease  One year increase  One year decrease 
 334 

 (173) 

 (317) 

 184 

87 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

2.10.  PROVISIONS 

Amount at 
31.12.2021 

Additional 
provisions 

Unused 
amounts 
reversed 

Amounts 
used 

Transfer 
between 
categories 

Change in 
estimation 

EUR million 
Amount at 
31.12.2022 

 354 
 22 

2 440 

 1 
 530 
3 348 
2 950 

 222 
 54 

– 

– 
 494 
 770 
 242 

 (83) 
 (3) 

 (216) 
 (2) 

– 
 (0) 

– 
 0 

– 

 (38) 

– 

 (657) 

– 
 (249) 
 (336) 
 (85) 

– 
 (100) 
 (356) 
 (218) 

– 
 0 
 0 
 (36) 

 0 
 2 
 (654) 
 (654) 

 277 
 71 

1 745 

 1 
 677 
2 771 
2 199 

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

Current 

 398 

 527 

 (251) 

 (138) 

 36 

 (0) 

 571 

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

Legal cases 

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

Nuclear site dismantlement 

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

In accordance with the EU accounting rules, this provision is indexed for inflation and then discounted to 
its net present value (using the Euro swap curve). At 31 December 2022, this resulted in a provision of 
EUR 1 745 million, split between amounts expected to be used in 2023 (EUR 35 million) and afterwards 
(EUR 1  710  million).  The  decrease  compared  to  2021  is  mainly  the  result  of  the  sharp  increase  in  the 
discount rates applied to the estimated future costs. 

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

88 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 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 

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 

323 798 
 9 
 177 
323 985 

22 022 
 15 
6 279 
28 316 
352 301 

214 824 
 5 
 146 
214 974 

23 501 
– 
7 648 
31 149 
246 123 

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 
2.11.1.1 
2.11.1.2 

31.12.2022 
344 303 
1 517 
345 820 
323 798 
22 022 

EUR million 
31.12.2021 
236 720 
1 605 
238 325 
214 824 
23 501 

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 

The borrowings mainly refer to long-term bonds, except for NGEU where there are short term EU-bills of 
EUR 17 billion (2021: EUR 20 billion). Aside from NGEU borrowings, see below, all borrowings are back-
to-back, meaning that there are corresponding equivalent loans (same terms, interest rates, maturities, 
etc.) – see note 2.4.1.1. 

NGEU  borrowings  finance  RRF  loans,  RRF  non-repayable  support  and  other  MFF  programmes.  There  is 
a bi-annual  borrowing  plan  based  on  the  forecasted  outflows  for  loans  and  non-repayable  support.  The 
Commission  follows  a  diversified  funding  strategy  and  uses  different  long  term  and  short  term  funding 
instruments,  which  allows  it  to offer  long-term  loans  on  attractive  terms  to  beneficiary  Member  States. 
The  borrowing  costs  are  then  allocated  –  following  a  single  unified  approach  –  to  beneficiaries  of  the 
loans and to the EU budget (for the non-repayable support).  

In the context of the NGEU diversified funding strategy, the Commission issues short-term notes (3 or 6 
months),  which  may  be  repaid  during  the  same  or  next  year.  The  EUR  53.4  billion  in  the  line 
‘repayments’ under RRF refers to such short term borrowings. The net additional borrowing for NGEU in 
2022 was EUR 96.9 billion. 

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

89 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

For  NGEU  the  line  ‘change  in  carrying  amount’  mainly  refers  to  discounts  on  the  2022  bond  issuances. 
When  the  coupon  rates  are  lower  than  the  market  rates,  the  borrower  receives  less  than  the  nominal 
value of the borrowings. The difference is the discount amount. This is gradually amortised, as a finance 
cost and is part of the calculation for the effective interest rate of the borrowing.  

The repayment of the above borrowings are ultimately guaranteed by the EU budget – see note 2.4.1.1, 
and by extension by each Member State. 

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

NGEU 
SURE 
EFSM 
BOP 
MFA 
Euratom 

2.11.1.2.  Other financial liabilities 

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

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

Total 

Finance lease liabilities 

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% 

31.12.2022 

EUR million 
31.12.2021 

 847 
 296 
 106 
1 249 

 103 
 48 
– 
 117 
 268 
1 517 

1 017 
 291 
 133 
1 441 

 103 
 54 
– 
 6 
 164 
1 605 

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 

Future amounts to be paid 

EUR million 

1-5 years 
 393 
 7 
 400 
 124 

> 5 years  Total Liability 
 938 
 13 
 951 
 237 

 447 
– 
 447 
 74 

 524 

 521 

1 188 

 619 

 631 

1 395 

< 1 year 
 97 
 6 
 103 
 39 

 143 

 145 

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

90 

 
 
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
2.11.2.  Financial guarantee liabilities 

Annual accounts of the European Union 2022 

31.12.2022 

Financial 
guarantee 
receivable  
(Note 2.6.2) 

Financial 
guarantee 
 liability 

31.12.2021 

Financial 
guarantee 
receivable   

(Note 2.6.2) 

EUR million 

Financial 
guarantee 
 liability 

2 039 
 47 
 3 
 46 
 0 
2 134 

 0 
 37 
– 
 29 
 66 

2 201 
1 832 
 369 

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 

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 

The EU applies the gross presentation of the financial guarantee contracts, where the revenues still to be 
received under the guarantee are recognised as a finacial guarantee receivable leg (presented under the 
exchange  receivables  heading  –  see  note  2.6.2)  and  a  finacial  guarantee  liability  is  recognised 
representing the EU liabililty for coverage of the future guarantee claims.  

The EFSI guarantee and ELM guarantee remain the financially most significant of the financial guarantee 
programmes,  with  a  financial  guarantee  liability  of  EUR  2  178  million  and  2  358  million  respectively. 
While  in  return  for  the  EFSI  guarantee,  the  EU  is  entitled  to  an  expected  remuneration  of 
EUR 2 039 million  –  recognised  as  a  finacial  guarantee  receivable  –  covering  to  a  large  extent  the 
liability,  for  the  ELM  guarantee  the  expected  revenues  are  EUR  47  million,  thus  covering  only  a  small 
fraction  of  the  guarantee.  This  is  due  to  a  high  share  of  EU  subsidisation  of  the  ELM.  In  2022,  new 
guarantee  agreements  were  signed  under  InvestEU  and  NDICI  programmes,  leading  to  recognition  of 
new financial guarantee liabilities (see also note 4.1.1). 

Most of the remaining EU guarantee programmes, in particular those provided for higher-risk financing to 
SMEs or to the innovation sector, are non-remunerated. Please see note 2.4.2.1 for further information 
on guarantees under the H2020 programme and note 4.1.2 in relation to COSME. 

91 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

2.12.  PAYABLES 

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

ESF 

RRF (NGEU) 

Other 

Private and public entities 
Total cost claims and 
invoices received 
EAGF 

Own resources payables 

Sundry payables 

Other 

Total 

Gross 
Amount 

Adjustments 

Net Amount 
at 31.12.2022 

Gross 
Amount 

Adjustments 

EUR million 
Net Amount 
at 31.12.2021 

 80 

 (0) 

6 258 

2 796 

24 629 

1 075 

1 527 

(1 614) 

 (368) 

 (170) 

 (467) 

 80 

4 644 

2 428 

 30 

6 484 

3 311 

 (0) 

(1 878) 

 (596) 

24 629 

19 118 

 904 

1 060 

 663 

1 563 

 (58) 

 (320) 

 30 

4 606 

2 715 

19 118 

 605 

1 244 

36 366 

(2 620) 

33 745 

31 169 

(2 851) 

28 318 

15 795 

3 764 

1 679 

 357 

N/A 

N/A 

N/A 

N/A 

15 795 

15 650 

3 764 

1 679 

 357 

 38 

2 030 

 335 

N/A 

N/A 

N/A 

N/A 

15 650 

 38 

2 030 

 335 

57 961 

(2 620) 

55 341 

49 223 

(2 851) 

46 372 

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

The  significant  increase  compared  to  the  previous  year-end  is  caused  primarily  by  the  RRF  (NGEU) 
instrument which began in 2021 and where payables outstanding at 31 December 2022 totalled EUR 24.6 
billion.  These  amounts  represent  the  payment  requests  received  towards  the  end  of  the  year  for  which 
the assessment of milestones and targets was still pending. 

In the 2014-2020 programming period, the  Common Provisions Regulation  2013/1303 (CPR) applicable 
to the Structural Funds (ERDF and ESF), the Cohesion Fund and to the European Maritime and Fisheries 
Fund (EMFF) foresees that the EU budget is protected by means of a systematic retention of 10% of the 
interim  payments made.  By February following the end of the  CPR accounting year (1 July  –  30 June), 
the  control  cycle  is  complete,  both  through  management  verifications  by  the  managing  authorities  and 
audits  by  the  audit  authorities.  The  Commission  examines  the  assurance  documents  and  the  accounts 
provided by the relevant authorities in the Member States. The payment / recovery of the final balance is 
made  only  after  this  assessment  is  finalised  and  the  accounts  are  accepted.  The  amount  retained 
according to this provision at end 2022 totalled EUR 8.8 billion. A part of this amount (EUR 1.3 billion) is 
estimated as being  non-eligible on the basis of the  information provided  by  the Member States in their 
accounts and is also included in the column ‘Adjustments’.  

Requests for pre-financing 

In  addition  to  the  above  amounts,  at  the  end  of  2022,  EUR 3  billion  of  requests  for  pre-financing  have 
been received and were not yet paid at year-end. According to the EU accounting rules, these amounts 
are not booked as payables.  

Own Resources Payables 

Own resources payables refer to Member States EU budget contributions to be reimbursed at year-end. 
Amending  budgets  are  implemented  according  to  Article  10a(3)  of  Regulation  no  609/2014.  The  large 
balance  at  31  December  2022  was  due  to  the  adoption  of  the  amending  budget  No  5/2022  on  23 
November  2022.  According  to  this  legal  provision,  the  resulting  amounts  were  returned  to  the  Member 
States on the first working day of January 2023. 

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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 
85 870 
 127 
 167 
86 164 

31.12.2022 
17 188 
25 316 
19 625 
8 741 
3 366 
11 633 
85 870 

EUR million 
31.12.2021 
77 819 
 126 
 123 
78 068 

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

Accrued  charges  refer  to  recognised  expenses  for  which  the  Union  has  still  to  receive  cost  claims.  For 
cohesion policy, the decrease relates mainly to the fact that the 2014-2020 period is in its closing phase. 
Additionally the implementation for the current programming period is rather slow and as a result there 
was no recognition of accrued charges for the 2021-2027 period. On the other hand, there is an increase 
of  accrued  charges  for  the  RRF  instrument  as  the  Member  States  advance  with  the  implementation  of 
reforms and investments and milestones are fulfiled. 

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NET ASSETS 

2.14.  RESERVES 

Other reserves 
Total 

Note 

31.12.2022 
1 312 
1 312 

EUR million 
31.12.2021 
1 325 
1 325 

The amount relates primarily to the reserves of the ECSC in  Liquidation (EUR 865 million) for the assets 
of the Research Fund for Coal and Steel, which were created in the context of the winding-up of the ECSC 
in  Liquidation,  as  well  as  to  the  reserve  fund  of  the  European  Union  Intellectual  Property  Office 
(EUR 293 million). 

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 

83 624 
3 227 
(46 048) 
 (115) 
91 949 
132 637 

This  amount  represents  that  part  of  the  expenses  incurred  by  the  EU  up  to  31 December that  must  be 
funded  by  future  budgets.  Many  expenses  are  recognised  under  accrual  accounting  rules  in  the  year  N 
although they may be actually paid in year N+1 (or later) and therefore funded using the budget of year 
N+1  (or  later).  The  inclusion  in  the  accounts  of  these  liabilities  coupled  with  the  fact  that  the 
corresponding amounts are financed from future budgets, results in liabilities greatly exceeding assets at 
the year-end. The most significant amounts to be highlighted concern the borrowings in relation to non-
repayable support taken out under NGEU, EAGF activities and employee benefit liabilities. 

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

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

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

94 

 
 
 
 
 
 
 
 
 
 
 
 
 
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3.  NOTES TO THE STATEMENT OF FINANCIAL 

PERFORMANCE 

REVENUE 

REVENUE FROM NON-EXCHANGE TRANSACTIONS: 
OWN RESOURCES 

3.1.  GNI RESOURCES 

Own  resources  revenue  is  the  primary  element  of  the  EU's  operational  revenue.  GNI  (gross  national 
income) revenue amounts to EUR 103 880 million for 2022 (2021: EUR 115 955 million) and is the most 
significant  of  the  four  categories  of  own  resources.  A  uniform  percentage  is  levied  on  the  GNI  of  each 
Member State. The GNI revenue balances revenue and expenditure, i.e. it funds the part of the budget 
that is not covered by other sources of income. The decrease of GNI revenue in 2022 comapred to 2021 
is explained by multiple factors: the budgeting of a higher surplus by EUR 1.5 billion, the increase of the 
customs  duties  forecast  by  EUR  6.4  billion,  a  higher  VAT  contribution  by  EUR  1.8  billion  and  a  bigger 
contribution by the United Kingdom linked to the Withdrawal Agreement (EUR 3.9 billion).  

3.2.  TRADITIONAL OWN RESOURCES 

Traditional  own  resources  relate  mainly  to  customs  duties  where  Member  States  retain,  by  way  of 
collection  costs,  25%  of  the  amounts,  so  the  above  figures  are  net  of  this  deduction.  The  collection  of 
customs duties has increased significantly due to the economic recovery. 

3.3.  VAT RESOURCES 

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

3.4.  PLASTICS OWN RESOURCES 

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

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REVENUE FROM NON-EXCHANGE TRANSACTIONS: 
TRANSFERS 

3.5.  FINES 

Revenue  of  EUR  915  million  (2021:  EUR 1  990  million)  relates  mainly  to  fines  the  Commission  has 
imposed  on  Member  States  for  infringements  of  EU  law  (EUR  640  million)  and  fines  imposed  on 
companies for breaches of EU competition rules (EUR 272 million).  

3.6.  RECOVERY OF EXPENSES 

Shared management 
Direct management 
Indirect management 
Total 

2022 
1 110 
 90 
 19 
1 219 

EUR million 
2021 
1 682 
 61 
 51 
1 794 

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

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

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

Shared management recoveries make up the bulk of the total: 

Agriculture: EAGF and rural development 

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

Cohesion policy 

The main amounts related to cohesion policy are amounts that the Commission expects to recover from 
the Member States.  The recovery  will be made  following  the examination and  acceptance  of the annual 
accounts  submitted  by  the  Member  States  in  early  2023.  The  amounts  to  be  recovered  represent 
essentially  the  difference  between  amounts  initially  declared  as  eligible  during  the  accounting  year  and 
the  amounts  confirmed  as  eligible  in  the  annual  accounts  of  the  Member  States.  A  low  amount  means 
that the controls in place at Member State level enabled the detection of ineligible amounts early in the 
process. 

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3.7.  UK WITHDRAWAL AGREEMENT 

This  relates  to  the  net  amounts  owed  by  the  UK  under  the  WA  signed  following  its  departure  from  the 
Union  in  2020  (see  note  2.6.1.2),  adjusted  each  year  in  accordance  with  the  requirements  of  the  WA. 
The revenue is zero for 2022 and instead an expense is recognised – this arises primarily due to the large 
decrease  in  the  outstanding  receivable  from  the  UK  relating  to  pensions  and  other  employee  benefits 
(Article 142) as well as additional amounts payable to the UK relating to own resources (Article 136). 

3.8.  OTHER REVENUE FROM NON-EXCHANGE 

TRANSACTIONS 

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

2022 
3 192 
1 439 
1 307 
 204 
 321 
3 246 
 991 
 695 
11 395 

EUR million 
2021 
2 187 
1 367 
1 056 
 199 
 356 
1 245 
 65 
 261 
6 737 

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

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

Contributions from third countries are mainly contributions from EFTA countries (EUR 646 million) as well 
as financial contributions of third states to Horizon Europe (EUR 427 million) and to ERASMUS+ (EUR 145 
million). 

Contributions from Member States concern mainly EUR 165 million to finance the Facility for Refugees in 
Turkey. 

The budgetary adjustments mainly represent the budget surplus from the previous year, which amounted 
to EUR 3 227 million (2021: EUR 1 769 million). 

The  increase  in  revenue  related  to  provisions  is  mainly  due  to  the  decrease  of  the  nuclear  site 
dismantlement provision (see note 2.10). 

Other  revenue  from  non-exchange  transactions  includes  the  ITER  Host  State  and  Membership 
contributions  to  Fusion  for  Energy,  the  European  Joint  Undertaking  for  ITER  and  the  Development  of 
Fusion  Energy  (EUR  155.5  million)  and  an  adjustment  on  TOR  recoverables’  write  down  (EUR  189 
million). 

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REVENUE FROM EXCHANGE TRANSACTIONS 

3.9.  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 
 127 
1 282 

 128 
 294 
 114 
 20 
2 602 

EUR million 
2021 

1 529 
1 160 
 220 
 10 
 987 

 324 
 815 
 30 
 16 
5 092 

Interest revenue on late payments stems mainly from fines and own resources contributions due and not 
paid on time. The negative amount is explained by the significant reduction of the accrued late payment 
interest revenue for the undervaluation case referred to in note 2.6.1.1, from EUR 1.4 billion recognised 
in  2021  to  EUR  0.4  billion  in  2022.  This  reduction  of  EUR  1  billion  is  a  consequence  of  the  Court 
judgement issued in March 2022 and so is recognised in the 2022 financial year. 

The  interest  on  loans  relates  mainly  to  EFSM  (EUR  0.8  billion)  where  the  outstanding  amounts  mainly 
bear  high  effective  interest  rate.  Another  EUR  0.2  billion  relates  to  the  RRF  loans  where  the  new 
disbursements in 2022 had  higher  effective  interest rates  than  last  year.  The interest  on  SURE  loans is 
low (EUR 0.2 billion) compared to the outstanding loans amount. This is because a significant part of past 
transactions had lower or negative interest rates. See also note 2.4.1. 

Interest revenue from borrowings mainly refers to NGEU and SURE and is due to the negative effective 
interest rates for certain past transactions.  

Revenue  from  financial  guarantee  contracts  relates  primarily  to  the  amortization  of  the  financial 
guarantee liabilities. It can be interpreted as a release of the EU from guarantee liabilities for the period 
the EU was standing ready to compensate the holders of the guarantees for their credit losses. Thus, the 
revenue recognition for financial guarantees reflects the passage of time and the guaranteed volume. The 
amortizations apply  to both types of guarantees,  those  which are  remunerated  and  those  for  which the 
EU charges no or nominal remuneration (see note 2.11.2). Out of the remunerated guarantees, the most 
significant is the EFSI guarantee provided to the EIB for the Infrastructure and Innovation Window (‘IIW’) 
debt  portfolio,  as  combined  with  InvestEU  debt  portfolios  as  of  2022  (see  note  4.1.1).  In  2022,  the 
revenue  earned  by  the  EFSI  guarantee  in  relation  to  those  combined  debt  portfolios  amounted  to 
EUR 313 million. 

The revenue related to financial guarantee contracts of EUR 1 282 million is off-set by impairment losses 
for  financial  guarantee  liabilities  amounting  to  EUR  362  million  relating  to  guarantee  calls  net  of 
recoveries of EUR 360 million and unrealized impairment losses EUR 1 million (see notes 3.15 and 6.5). 
In addition, the EC has subsidised financial guarantee programmes (EUR 514 million) by charging no or 
below  market  rate  guarantee  premiums  (note  3.15).  In  total,  the  net  result  from  financial  guarantee 
programmes is a surplus of EUR 406 million. 

98 

 
 
 
 
 
 
 
 
 
 
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3.10.  OTHER REVENUE FROM EXCHANGE TRANSACTIONS 

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

2022 
 694 
 330 
 121 
 24 
 26 
 475 
1 669 

EUR million 
2021 
 689 
 299 
 53 
 169 
 2 
 285 
1 497 

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

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Annual accounts of the European Union 2022 

EXPENSES 

3.11.  SHARED MANAGEMENT 

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

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 

The  transition  from  the  former  MFF  period  2014-2020  to  the  current  MFF  2021-2027  explains  the 
decrease in expenses in the cohesion area (ERDF,CF, ESF): the costs declared for the previous period are 
decreasing  while  the  costs  related  to  the  current  period  are  low,  mainly  due  to  the  slow  start  of  its 
implementation. 

Other expenses mainly include European Maritime and Fisheries Fund (EUR 0.8 billion), European Union 
Solidarity Fund (EUR 0.9 billion), Brexit Adjustment Reserve (EUR 0.4 billion), Asylum and Migration (EUR 
0.6 billion), Internal Security (EUR 0.4 billion) and the Fund for European Aid to the Most Deprived (EUR 
0.4 billion). 

3.12.  DIRECT MANAGEMENT 

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

2022 
78 497 
69 461 
14 962 
 568 
94 027 

EUR million 
2021 
48 265 
42 940 
14 232 
 503 
63 000 

The  increase  in  direct  management  expenses  implemented  by  the  Commission  relates  mainly  to  the 
implementation  of  RRF,  Research  Policy  and  External  Action.  The  main  expenditure  concerns  RRF  (EUR 
69.5  billion),  which  has  greatly  increased  from  the  previous  year  as  Member  States  use  the  funds 
provided  and  milestones  are  achieved.  The  rest  of  the  amounts  under  direct  management  primarily 
concern the implementation of Research Policy (EUR 7.4 billion) and External Actions, which include the 
Neighbourhood  Development  and  International  Cooperation  Instrument  and  its  precursors  (EUR  3.7 
billion), as well as the Humanitarian aid operations (EUR 1 billion).  

A  further  EUR  3.1  billion  relates  to  the  Connecting  Europe  Facility,  the  common  infrastructure  fund  to 
deploy smart networks in the area of transport, energy and telecommunications.  

3.13.  INDIRECT MANAGEMENT 

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

100 

2022 
3 615 
 630 
4 650 
4 738 
13 634 

EUR million 
2021 
3 154 
 890 
3 622 
3 225 
10 891 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Under  indirect  management  expenses,  EUR 6  billion  relates  to  external  actions  (mainly  in  the  areas  of  
pre-accession, humanitarian aid, international co-operation and neighbourhood). A further EUR 3.5 billion 
is  related  to  increasing  Europe's  competitiveness  (in  areas  such  as  research,  space  programmes  and 
education).

3.14.  STAFF AND PENSION COSTS 

Staff costs 
Pension costs 
Total 

2022 
7 957 
6 251 
14 209 

EUR million 
2021 
7 377 
5 040 
12 417 

Pension costs represent elements of the movements that have arisen following the actuarial valuation of 
the  employee  benefits  liabilities  other  than  those  recognised  in  Net  Assets.  They  do  not  therefore 
represent actual pension payments of the year, which are significantly lower at EUR 2.2 billion. 

3.15.  FINANCE COSTS 

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

2022 

1 912 
 161 
 50 
 31 
 514 

 362 
2 108 

2 344 
 126 
 29 
7 637 

EUR million 
2021 

1 209 
 146 
 56 
 103 
 233 

 947 
1 244 

 210 
 40 
 13 
4 201 

The interest expenses  from  borrowings are  mainly from  EFSM  (EUR 0.8  billion), NGEU  (EUR 0.9  billion) 
and  SURE  (EUR  0.2  billion).  The  interest  on  SURE  borrowings  are  significantly  lower  than  for  the  other 
programmes  because  a  significant  part  of  them  have  lower  or  negative  interest  rates.  The  negative 
effective  interest  rates  for  certain  past  SURE  transactions  also  explains  the  interest  expense  on  loans 
(‘back-to-back’ lending with negative interest rates). 

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

Net  impairment  losses  on  loans  and  receivables  mostly  relate  to  the  additional  impairment  of 
EUR 2.1 billion recognised in 2022 on MFA and Euratom loans to Ukraine (see notes 2.4.1.1 and 6.5). 

The main loss on finacial assets or liabilities at FVSD non-derivatives is from the debt securities of the 
CPF (EUR 1.1 billion) and the Innovation Fund (0.5 billion). In 2022 the bond market prices fell because 
of the increase in the interest rates. This has negatively impacted the fair value of the bonds held in the 
EU portfolios leading to the recognition of a mostly unrealised fair value loss. 

101 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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3.16.  OTHER EXPENSES 

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

2022 
2 321 
 769 
1 518 
 686 
 427 
 411 
1 378 
 832 
8 342 

EUR million 
2021 
2 105 
 583 
1 205 
 591 
 171 
 447 
 15 
 645 
5 762 

The amount disclosed in line ‘Reduction of fines by Court decision’ above includes EUR 997 million related 
to the annulment of a fine imposed in January 2018 on Qualcomm for abusing its market  dominance. In 
June  2022,  the  EU  General  Court  annulled  the  fine  and  the  Commission  did  not  appeal  the  Court’s 
judgement, resulting in a write-off of the fine receivable in the 2022 annual accounts. 

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 
 430 
 133 
 563 

EUR million 
2021 
 401 
 122 
 523 

102 

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

Annual accounts of the European Union 2022 

GNI resources 
Traditional own resources 
VAT 
New Own Resources 
Fines 
Recovery of expenses 
UK Withdrawal Agreement 
Other 
Revenue from non-
exchange transactions 
Financial revenue 
Other 
Revenue from exchange 
transactions 
Total revenue 
Expenses implemented by 
Member States: 
     EAGF 
     EAFRD & other rural 
development instruments 
     ERDF & CF 
     ESF 
     Other 
Implemented by the EC, 
executive agencies and trust 
funds 
Implemented by other EU 
agencies and bodies 
Implemented by third 
countries and int. org. 
Implemented by other entities 
Staff and Pension costs 
Finance costs 
UK Withdrawal Agreement 
Other expenses 
Total expenses 
Economic result of the year 

Cohesion and 
Values 

– 
– 
– 
– 
– 
 620 
– 
 140 

 761 

 18 
 (25) 

 (7) 

 754 

Single Market, 
Innovation and 
Digital 
– 
– 
– 
– 
– 
 62 
– 
1 173 

1 236 

1 471 
 111 

1 582 

2 817 

– 

– 

– 
– 
– 

 813 

 1 
 (12) 

 (11) 

 802 

– 
– 
 (755) 

 (906) 

– 

– 

(41 031) 

(16 073) 

(43 083) 
(14 649) 
 (764) 

Natural 
Resources and 
Environment 
– 
– 
– 
– 
– 
 468 
– 
 345 

Migration and 
Border 
Management 
– 
– 
– 
– 
– 
 4 
– 
 0 

Resilience, 
Security and 
Defence 
– 
– 
– 
– 
– 
 0 
– 
 657 

Neighbourhood 
and the World 

– 
– 
– 
– 
– 
 63 
– 
 206 

 269 

 362 
 67 

 429 

 699 

– 

– 

– 
– 
 (132) 

European 
Public 
Administration 
– 
– 
– 
– 
– 
 0 
– 
1 896 

Not assigned 
to MFF 
heading* 
103 880 
23 495 
19 666 
6 337 
 915 
 2 
– 
6 977 

EUR million 
Total 

103 880 
23 495 
19 666 
6 337 
 915 
1 219 
– 
11 395 

1 896 

161 271 

166 908 

 6 
 480 

 486 

 743 
1 052 

1 795 

2 602 
1 669 

4 271 

2 382 

163 067 

171 179 

– 

– 

– 
– 
– 

– 

– 

– 
– 
 (898) 

(41 031) 

(16 073) 

(43 083) 
(14 649) 
(3 482) 

 4 

– 
 (0) 

 (0) 

 4 

– 

– 

– 
– 
 (862) 

 657 

 0 
 (3) 

 (3) 

 654 

– 

– 

– 
– 
 (72) 

(12 765) 

(73 573) 

 (459) 

 (303) 

(5 802) 

 (12) 

 (208) 

(94 027) 

(2 848) 

 (494) 

 (90) 

(1 018) 

 (210) 

 (25) 

 (111) 

1 180 

(3 615) 

 (418) 

 (225) 
 (493) 
 (882) 

 (114) 

(2 799) 
 (15) 
 (11) 

 (5) 

 (1) 
 (2) 
 (6) 

(2 195) 
(19 825) 
(17 008) 

 (168) 
(135 670) 
(134 916) 

 (305) 
(59 174) 
(58 372) 

 (241) 

 (163) 

 (6) 
 (0) 
 (0) 

 (19) 
(2 604) 
(2 600) 

 (57) 
 (3) 
 (0) 

 (8) 
 (816) 
 (163) 

(4 334) 

(1 653) 
 (157) 
 (574) 

 (281) 
(12 957) 
(12 258) 

 (1) 

 (5) 

(5 281) 

 (0) 
(12 006) 
 (210) 

(3 421) 
(15 761) 
(13 379) 

 2 
(1 531) 
(5 953) 
(6 961) 
(1 946) 
(16 321) 
146 746 

(4 738) 
(14 209) 
(7 637) 
(6 961) 
(8 342) 
(263 128) 
(91 949) 

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

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

103 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

4. 

CONTINGENT LIABILITIES AND ASSETS 

Contingent liabilities are possible future payment obligations for the EU that may arise due to past events 
or  legally  binding  commitments  taken  but  which  will  depend  on  future  events  not  wholly  under  the 
control of the EU. They relate mainly to guarantees given and  to legal risks. All contingent liabilities, 
except  those  relating  to  fines,  guarantees  and  financial  instruments  up  to  the  level  they  are 
covered by funds (see note 2.4.2.1), would be financed, should they fall due, by the EU budget 
(and thus the EU Member States) in the years to come. 

For information  on the  EU  budget  guarantees given  to  cover  NGEU  and financial  assistance  borrowings, 
please see note 2.4.1.1, as well as note 2.11.1.1. This information had been previously disclosed under 
this section but since any call on these guarantees would depend on a default of loans granted, which are 
presented in more detail in note 2.4.1.1, it is considered more relevant to present this information there. 

4.1.  Guarantees given by the 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 

Ceiling 
30 599 
25 793 
1 176 
21 280 
27 020 
105 869 

Signed  Disbursed 
20 909 
30 599 
21 084 
24 615 
 446 
 522 
 324 
2 108 
4 515 
 156 
42 919 
62 359 

EUR million 

Assets 
provisioned* 

2 710 
8 571 
 728 
1 722 
1 067 
14 798 

* The EUR 2.7 billion of assets provisioned for the EIB ELM guarantees also cover borrowings under legacy MFA and Euratom (see note 
4.1.2). 

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

31.12.2021 

Guarantees given 

Ceiling 
33 026 
25 826 
1 391 
 200 
60 442 

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

Assets 
provisioned* 

2 700 
8 602 
 796 
– 
12 098 

* The EUR 2.7 billion of assets provisioned for the EIB ELM guarantees also cover borrowings under legacy MFA and Euratom (see note 
4.1.2)  

The above tables show the extent of the exposure of the EU budget to possible future payments linked to 
guarantees  given  to  the  EIB  group  or  other  financial  institutions.  Disbursed  amounts  represent  the 
amounts already given to  final beneficiaries, while  signed amounts include  these  disbursed monies plus 
agreements already signed with beneficiaries or financial intermediaries but not yet disbursed at year-end 
(EUR 19 440 million). The ceiling represents the total guarantee that the EU budget, and thus its Member 
States,  have  committed  to  cover,  since  in  order  to  disclose  the  maximum  exposure  faced  by  the  EU  at 
31 December 2022, operations authorised to be signed but not yet signed (EUR 43 510 million) must be 
included.  

Budgetary guarantee programmes are backed by provisions gradually built up from the budget and kept 
in the Common Provisioning Fund (‘CPF’) as a liquidity cushion to cover future guarantee calls (see note 
2.4.2.1).  The  amounts  provisioned  amounted  to  EUR  14  798  million  at  31  December  2022  (2021: 
EUR 12 098 million). Please see note 6.2 for the measures put in place to ensure that the provisioning is 
sufficent  to  cover  the  guarantee  calls  in  the  medium  term.  Any  losses  incurred  under  the  budgetary 
guarantee programmes, above the provisioning set aside, would need in any case to be covered by future 
budgets.  

104 

 
 
 
 
 
 
 
 
 
 
 
 
 
EIB ELM guarantees 

Annual accounts of the European Union 2022 

The  EU  budget  guarantees  loans  signed  and  granted  by  the  EIB  from  the  EIB's  own  resources  to  third 
countries.  At  31  December  2022  the  amount  of  loans  outstanding  and  covered  by  the  EU  guarantee 
totalled EUR 20 909 million. The EU budget guarantees: 

 

 

EUR 20 482 million via the Guarantee Fund for external actions compartment of the CPF; and 

EUR 427 million directly for loans granted to Member States before accession. 

Included in the guarantees given as at 31 December 2022 are EUR 2.1 billion of signed but undisbursed 
loans for which future disbursements are conditional on approval by the EU. 

The EU ELM guarantee relating to loans granted by the EIB is limited to 65% of the outstanding balances 
for agreements signed after 2007 (mandates 2007-2013 and 2014-2021). For agreements made before 
2007,  the  EU  guarantee  is  limited  to  a  percentage  of  the  ceiling  of  the  credit  lines  authorised,  in  most 
cases 65% but also 70%, 75% or 100%. Where the ceiling is not reached, the EU guarantee covers the 
full amount. 

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

The ELM 2014-2020 mandate, which expired  in 2021, was the  last mandate under the  Guarantee Fund 
for  external  actions.  The  new  EIB  mandate  is  covered  by  the  External  Action  Guarantee  set  up  by  the 
NDICI Regulation. 

EU guarantee payments are made from the Guarantee Fund for external actions compartment of the CPF. 
During  2022,  EUR 190 million  of  guarantee  calls  net  of  recoveries  have  been  paid  out  (2021: 
EUR 93 million). 

European Fund for Strategic Investments (EFSI) guarantee 

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

The EFSI operations are conducted within two windows: the Infrastructure and Innovation Window (IIW) 
implemented  by  the  EIB  (EFSI  EU  guarantee  of  EUR 19 250 million)  and  the  SME  Window  (SMEW) 
implemented by the EIF (EFSI EU guarantee  of  EUR 6 750 million), both of  which  have  a  debt  portfolio 
and an equity portfolio. The EIF acts under an agreement with the EIB on the basis of an EIB guarantee, 
which  itself  is  counter-guaranteed  by  the  EFSI  EU  Guarantee  under  the  EFSI  Agreement.  In  order  to 
enhance  the  efficiency  of  EU  Guarantee  and  to  increase  its  risk  bearing  capacity,  a  combination  of  two 
EFSI  debt  portfolios  with  InvestEU  became  effective  in  2022.  Any  guarantee  calls,  recoveries  and  are 
distributed between the EFSI and the InvestEU Guarantee based on effective guaranteed allocations. 

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

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

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

105 

 
Annual accounts of the European Union 2022 

The EU guarantee granted to the EIB Group under EFSI is accounted for as a financial guarantee liability 
in respect of the  IIW debt portfolio  and  the  SMEW  debt  portfolio  (see  note  2.11.2)  and as a derivative 
(financial  asset  or  liability  at  fair  value  through  surplus  or  deficit)  for  both  equity  portfolios  (see  note 
2.4.2.2).  The  EFSI  guarantee  given  includes  operations  of  the  COSME,  H2020,  CCS  LGF  and  EaSI 
programmes for the part covered by the EFSI EU guarantee under the SMEW debt portfolio.  

During  2022,  EUR  21  million  of  net  guarantee  calls  have  been  paid  out  from  the  EFSI  Guarantee  Fund 
compartment of the CPF (2021: nil). 

European Fund for Sustainable Development (EFSD) 

The  European  Fund  for  Sustainable  Development,  established  by  the  EFSD  Regulation,  is  an  initiative 
aiming to support investments in Africa and the European Neighbourhood as a means to contribute to the 
achievement of sustainable development and to address specific socio-economic root causes of migration. 
Under  the  EFSD  Regulation,  the  EU  was  authorised  to  make  available  guarantees  of  EUR  1.5  billion 
(further increased by external contributions) to implementing partners for their investment and financing 
operations,  in  order  to  reduce  their  investment  risks.  The  EFSD  Guarantee  is  backed  by  the  CPF  –  see 
note 2.4.2.1. As at 31 December 2022, seventeen EFSD guarantee agreements were effective with  the 
total  guarantee  ceiling  amounting  to  EUR  1  176  million,  while  the  outstaning  operations  signed  by  the 
counterparties  and  guaranteed  by  the  EU  under  those  agreements  totalled  EUR  522  million.  For  one  of 
the EFSD guarantee agreements (with a EUR 145 million guarantee ceiling), where the EU guarantees the 
capital adequacy of a currency hedging fund, in case of a guarantee call the EU  holds a reimbursement 
right to receive shares of the fund worth the amount paid. 

NDICI external action guarantee 

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

The External Action Guarantee supports the EFSD+ operations covered by budgetary guarantees, macro-
financial assistance and loans to third countries. It is backed by the CPF – see note 2.4.2.1.  

As at 31 December 2022 six budgetary guarantee agreements were signed and outstanding, for a total 
ceiling  of  EUR 27.0 billion,  including  a  guarantee  agreement  (the  successor  of  the  ELM  programme) 
signed with EIB in April 2022 for a total ceiling of up to EUR 26.7 billion. By 31 December 2022 under this 
agreement operations of EUR 4.5 billion were signed, of which EUR 156 million was disbursed. 

InvestEU guarantee 

The  InvestEU  Regulation,  (EU)  2021/523,  allows  the  Commission  to  provide  up  to  EUR  26.2  billion  in 
guarantees to support financing and investments of financial institutions. The aim is to help achieve the 
Union’s  objectives  in  four  internal  policies:  Sustainable  infrastructure,  Research  innovation  and 
digitalisation, Small and  medium-sized companies, and Social  investment  and skills.  The Commission  is 
gradually setting money aside (‘provisioning’) from the InvestEU budget into the CPF in order to create a 
capital buffer for guarantee calls. The InvestEU Regulation has set the provisioning rate at 40% of the EU 
guarantee at 31 December 2022. 

In March  2022, the Commission  signed a  first  InvestEU  guarantee  agreement  with the  EIB  Group  for  a 
total  ceiling  of  EUR  19.6  billion,  which  was  further  increased  by  EUR  0.3  billion  stemming  from  several 
EU programmes combined with the InvestEU guarantee (blending operations). As at 31 December 2022, 
the  EU  guarantee  covered  signed  operations  for  a  total  amount  of  EUR  2.1  billion,  of  which  EUR  324 
million  were  disbursed.  Futhermore,  five  guarantee  agreements  with  other  implementing  partners  have 
been concluded for a total amount of EUR 1.4 billion, for which there were no guaranteed operations yet. 

In  addition  to  the  EU  budget,  the  Member  States  and  EEA  countries  can  contribute  to  the  InvestEU 
programme  from  their  Cohesion  Policy,  RRF  or  national  funds.  This  is  an  additional  amount  of  EU 
guarantee  with  a  provisioning  rate  which  is  set  on  a  case  by  case  basis.  The  Commission  first  signs  a 
contribution agreement with the Member State or EEA country and then a guarantee agreement with an 
implementing partner.  At 31  December  2022, the  Commission has signed contribution agreements  with 
five Member States for EUR 1.7 billion (out of which EUR 0.3 billion are back-to-back guarantees) but it 
has not yet signed guarantee agreements with implementing partners.  

106 

 
UK obligations arising from its departure from the EU 

Annual accounts of the European Union 2022 

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

For  EIB  external  lending  mandate  loans  (ELM),  the  value  of  the  EU  budgetary  guarantee  at  the 
withdrawal  date,  for  the  operations  approved  by  the  withdrawal  date,  was  EUR  33.7  billion.  At  31 
December  2022  this  had  changed  to  EUR  24.6  billion  (2021:  EUR  27.6  billion).  The  UK  share  of  this 
contingent liability at 31 December 2022 is thus EUR 3.1 billion (31 December 2021: EUR 3.4 billion). As 
stated  above  however,  any  default  on  these  loans  is  first  covered  by  the  Guarantee  Fund  for  external 
actions compartment of the CPF and amounts would only be called from the UK if the UK provisioning for 
this fund, of EUR 305 million at 31 December 2022, was not sufficient. 

With respect to EFSI operations, the value of the EU budgetary guarantee at the withdrawal date, for the 
operations  approved  by  the  withdrawal  date,  was  EUR  23.5  billion.  At  31  December  2022  this  had 
changed  to  EUR  18.6  billion  (2021:  EUR  18.8  billion).  The  UK  share  of  this  contingent  liability  at  31 
December  2022  is  thus  EUR 2.3 billion.  Any  guarantee  calls  under  EFSI  are  first  covered  by  the  EFSI 
guarantee  fund  compartment  of  the  CPF  and  amounts  would  only  be  called  from  the  UK  if  the  UK 
provisioning for this fund, of EUR 1.0 billion at 31 December 2022, was not sufficient. 

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

The UK share of the payments made in 2022 for the operations approved on or after the withdrawal date 
and up to 31 December 2022 amounted to EUR 51 million (EUR 34 million for EFSI and EUR 17 million for 
ELM),  reducing  correspondingly  the  UK  provisioning.  The  amount  due  to  the  UK  in  2023  is  EUR  313 
million (see note 2.6.1.2). 

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 

The amounts in the above table present the outstanding nominal amounts of the guarantees given under 
the EU financial instruments programmes. 

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

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

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

UK obligations arising from its departure from the EU 

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

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Annual accounts of the European Union 2022 

4.2.  Contingent liabilities relating to legal cases 

4.2.1. 

Legal cases in the area of fines 

At  31  December  2022  the  contingent  liabilities  relating  to  fines  amounted  to  EUR  2  990  million  (2021: 
EUR 2 111 million). These amounts mainly concern fines imposed by the Commission for infringement of 
competition rules that have been provisionally paid by fined companies and  where either an appeal has 
been  lodged  or  where  it  is  unknown  whether  an  appeal  will  be  made.  The  contingent  liability  will  be 
maintained until a decision by the Court of Justice on the case is final or until the expiry of the period  for 
appeal. Interest earned on provisional payments is included in the economic result of the year and also 
as a contingent liability to reflect the uncertainty of the Commission’s title to these amounts. 

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

The  increase  of  EUR  1.2  billion  is  mainly  due  to  receiving  a  provisional  payment  from  a  fined  company 
(EUR 0.9 billion) who withdrew their guarantee in 2022 to replace it with a cash payment. 

4.2.2.  Other legal cases 

Agriculture 
Cohesion 
Other 
Total 

Agriculture 

31.12.2022 
 194 
– 
2 909 
3 103 

EUR million 
31.12.2021 
 79 
 210 
1 153 
1 443 

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

Cohesion 

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

Other legal cases 

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

UK obligations arising from its departure from the EU 

Under Article 147 of the WA, the United Kingdom shall be liable for its share of the payments required to 
discharge the contingent liabilities of the Union that become due in relation to legal cases concerning the 
financial  interests  of  the  Union,  provided  that  the  facts  forming  the  subject  matter  of  those  cases 
occurred no later than 31 December 2020. The estimated maximum UK exposure here is EUR 384 million 
(2021: EUR 179 million). For legal cases where it is considered probable that amounts will be paid from 
the EU budget (see note 2.10), the UK share is included as part of the overall amount due from the UK – 
see details under note 2.6.1.2. 

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4.3.  CONTINGENT ASSETS 

Guarantees received: 
     Performance guarantees 
     Other guarantees 
Other contingent assets 
Total 

31.12.2022 

EUR million 
31.12.2021 

 282 
 6 
 19 
 307 

 287 
 8 
 98 
 393 

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

109 

 
 
 
 
 
 
  
 
 
Annual accounts of the European Union 2022 

5.  BUDGETARY AND LEGAL COMMITMENTS 

This note provides information on the budgetary process and future funding needs and not on liabilities 
existing as at 31 December 2022. 

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

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

A  budgetary  commitment  is  in  principle  made  before  the  legal  commitment,  but  for  some  multiannual 
programmes/projects  it  is  the  reverse,  the  relevant  budgetary  commitments  being  made  in  annual 
instalments, over several years, when the basic act so provides for. For example, for cohesion, Article 86 
of  the  Common  Provisions  Regulation  (CPR)  (Regulation  (EU)  2021/1060)  provides  that  the  decision  of 
the  Commission  adopting  a  programme  shall  constitute  a  legal  commitment  within  the  meaning  of  the 
Financial  Regulation  but  that  the  budgetary  commitments  of  the  Union  in  respect  of  each  programme 
shall  be  made  in  annual  instalments  for  each  fund  during  the  period  between  1  January  2021  and 
31 December  2027.  Other  legal  bases  may  contain  similar  provisions.  For  this  reason,  there  may  be 
amounts  that  the  EU  has  legally  committed  to  pay,  but  where  the  budgetary  commitment  has  not  yet 
been made – see note 5.2 below. 

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

The disclosures below thus represent amounts  at  31 December 2022 that the EU  has committed to pay 
based on the fulfilment of the contractual agreements and which are therefore intended to be funded by 
future EU budgets. 

Outstanding budgetary commitments not yet expensed 
Significant legal commitments 
Total 

Note 
5.1 
5.2 

EUR million 
31.12.2022  31.12.2021 
266 526 
135 181 
401 707 

364 503 
406 284 
770 787 

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5.1.  OUTSTANDING BUDGETARY COMMITMENTS NOT YET 

EXPENSED 

Outstanding budgetary commitments not yet expensed 

31.12.2022 
364 503 

EUR million 
31.12.2021 
266 526 

The  amount  disclosed  above  is  the  budgetary  RAL  (‘Reste  à  Liquider’)  of  EUR 452  821  million  (see 
table 6.4  in  the  budgetary  implementation  reports),  less  related  amounts  that  have  been  included  as 
liabilities on the balance sheet and as expenses in the statement of financial performance. The budgetary 
RAL is an amount representing the open commitments for which payments and/or decommitments have 
not  yet  been  made.  This  is  the  normal  consequence  of  the  existence  of  multi-annual  programmes.  The 
significant increase compared to 2021 is related to the inscription of the last RRF budgetary commitments 
(see also 5.2 below). 

that  outstanding  pre-financing  advances  at  31 December 2022 

It  should  be  noted 
totalled 
EUR 100.5 billion  –  see  note  2.5.  This  represents  budgetary  commitments  that  have  been  paid, 
decreasing the RAL, but where the amounts paid are still considered as belonging to the EU and not to 
the  beneficiary,  until  the  relevant  contractual  obligations  are  fulfilled.  They  are  thus,  like  the  RAL 
disclosed above, not yet expensed. 

5.2.  SIGNIFICANT LEGAL COMMITMENTS 

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

31.12.2022 
298 948 
82 372 
8 368 
– 
5 855 
3 548 
 265 
 322 
 362 
 296 
1 811 
 700 
2 539 
 896 
406 284 

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

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

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

Funds under shared management 

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

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Article 86(2) of the Common Provisions Regulation (CPR) for shared management funds states:  

‘The  budgetary  commitments  of  the  Union  in  respect  of  each  programme  shall  be  made  by  the 
Commission  in  annual  instalments  for  each  Fund  during  the  period  between  1  January  2021  and  31 
December 2027’. 

The  amounts  disclosed  on  the  first  three  lines  of  the  table  above  relate  to  the  Heading  2A  (Economic, 
Social  and  Territorial  Cohesion),  Heading  3  (Natural  Resources  and  Environment)  and  Heading  4 
(Migration and Border Management) of the MFF 2021-2027. They represent the outstanding amounts that 
the EU will commit budgetarily and then pay after 31 December 2022.  

NGEU (RRF) non-repayable support commitments  

The  RRF  is  a  key  programme  of  NGEU,  the  EU  Recovery  Instrument.  It  was  established  by  Regulation 
(EU) 2021/241 of the European Parliament and of the Council of 12 February 2021. It finances reforms 
and  investments  in  Member  States  from  the  start  of  the  coronavirus  pandemic  in  February  2020  until 
2026.  Article  23  of  Regulation  (EU)  2021/241  authorises  the  use  of  annual  instalments.  The  legal 
commitments  signed  up  to  31/12/2022  in  the  framework  of  this  programme  represent  approximately 
70% of the overall amount for the non-repayable support of the RRF, as per article 11 of the Regulation. 
They have been entirely covered by budgetary commitments at 31 December 2022.  

ITER – International Thermonuclear Experimental Reactor 

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

Space Programmes  

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

Fisheries agreements 

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

Horizon Europe 

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

EURATOM 

EURATOM is a programme based on Council Regulation (Euratom) 2021/765 of 10 May 2021 establishing 
the Research and Training Programme of the European  Atomic Energy Community for the period 2021-
2025  complementing  Horizon  Europe  –  the  Framework  Programme  for  Research  and  Innovation  and 
repealing  Regulation  (Euratom)  2018/1563  (OJ  L  167I,  12.05.2021,  p.  81).  Article  4  of  the  regulation 
foresees the use of the annual instalments.  

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The  general  objective  of  the  Programme  is  to  pursue  nuclear  research  and  training  activities,  with  an 
emphasis on the continuous improvement of nuclear safety, security and radiation protection, as  well as 
to  complement  the  achievement  of  Horizon  Europe’s  objectives  inter  alia  in  the  context  of  the  energy 
transition. The Euratom Programme provides research grants through competitive calls for proposals and 
to named beneficiaries. 

Brexit Adjustment Reserve (BAR) 

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

European Union Solidarity Fund (EUSF) 

The European Union Solidarity Fund (EUSF) was set up to respond to major natural disasters and express 
European  solidarity  to  disaster-stricken  regions  within  Europe.  The  EUSF  has  been  established  by 
Regulation (EC) n° 2012/2002 of the Council of 11 November 2002 and amended by Regulation (EU) No 
661/2014  of  the  European  Parliament  and  of  the  Council  of  15  May  2014  and  Regulation  (EU)  No 
461/2020 of the European Parliament and of the Council of 30/03/2020. The amount disclosed represents 
the legal commitments not yet covered by budgetary commitments. 

Connecting Europe Facility (CEF2) 

The  CEF2  provides  financial  assistance  to  trans-European  networks  in  order  to  support  projects  of 
common  interest  in  the  sectors  of  transport,  telecommunications  and  energy  infrastructures.  The  legal 
commitments for the CEF programme cover an implementation period running from 2021 until 2027 for 
CEF Energy (with a possibility to be extended). The legal basis of these commitments is the ‘Regulation 
(EU) 2021/1153 of the European Parliament and of the Council of 7 July 2021 establishing the Connecting 
Europe  Facility  and  repealing  Regulations  (EU)  No  1316/2013  and  (EU)  No  283/2014  (Text  with  EEA 
relevance)’  with  the  article  4.5  stating  that  ‘Budgetary  commitments  for  actions  extending  over  more 
than one financial year may be broken down into annual instalments, over two or more years’. 

Operating lease commitments 

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

Buildings 
IT materials and other equipment 
Total 

Minimum lease payments 

< 1 year 
 449 
 12 
 461 

1- 5 years 
1 040 
 27 
1 067 

> 5 years 
1 005 
 7 
1 012 

EUR million 

Total 
2 493 
 46 
2 539 

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

The amounts disclosed in the table above include EUR 366 million still due under the headlease contract. 
An  equal  amount  of  payments  is  expected  to  be  received  by  the  subtenant  under  the  non-cancellable 
sublease. 

Other contractual commitments 

The amounts included under this disclosure correspond to amounts committed to be paid during the term 
of the contracts. The most significant amount included here relates to  a building contract (JMO2) of the 
Commission in Luxembourg (EUR 505 million). 

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6. 

FINANCIAL RISK MANAGEMENT 

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

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

NGEU, EFSM, BOP, MFA, SURE and Euratom actions; 

 

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

  Assets held in the Common Provisioning Fund for budgetary guarantees, the ECSC in liquidation 

and the BUFI portfolio;  

 

 

Financial instruments financed by the EU budget; and 

EU budgetary guarantee programmes. 

6.1.  TYPES OF FINANCIAL RISK 

The  EU  is  exposed  to  and  manages  the  following  main  financial  risks  stemming  from  its  financial 
instruments: 

Market  risk  is  the  risk  that  the  fair  value  or  future  cash  flows  of  a  financial  instrument  will  fluctuate, 
because of variations in market prices. Market risk embodies not only the potential for loss, but also the 
potential for gain. It comprises currency risk, interest rate risk and other price risk (such as equity risk): 

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

 

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

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

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

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

6.2.  RISK MANAGEMENT POLICIES  

Measurement of financial instruments 

The  following  classes  of  financial  assets  and  liabilities  are  not  measured  at  fair  value:  cash  and  cash 
equivalents,  loans,  exchange  receivables  other  than  financial  guarantee  contract  receivables  when 
classified  to  financial  assets  at  FVSD,  borrowings,  financial  guarantee  contracts  and  other  financial 
liabilities  measured  at  amortized  cost.  The  carrying  amount  of  those  financial  assets  and  liabilities  is 
considered as a reasonable approximation of their fair value. 

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Annual accounts of the European Union 2022 

The  borrowing  and  lending  transactions  are  carried  out  by  the  EU  according  to  the  respective  Council 
Regulations,  Council  and  European  Parliament  Decisions,  and,  if  applicable,  internal  guidelines.  Written 
procedure  manuals  covering  specific  areas  such  as  borrowings  and  loans  have  been  developed  and  are 
used  by  the  relevant  operational  units.  Financial  and  operational  risks  are  identified  and  evaluated  and 
compliance to internal guidelines and procedures is checked regularly.  

Lending  operations  other  than  NGEU  are  financed  by  ’back-to-back‘  borrowings,  which  thus  do  not 
generate open interest rate or  currency  positions.  Loans provided  under  NGEU  do  not follow  a  back-to-
back  approach  as  is  done  for  the  other  financial  assistance  instruments.  Instead,  a  diversified  funding 
strategy  has  been  developed  for  the  NGEU  which  combines  a  wide  range  of  funding  instruments.  The 
diversified  funding  strategy  has  required  the  development  and  implementation  of  efficient  risk 
management guidelines and procedures for the NGEU instrument that actively address the related risks 
on a daily basis. 

NGEU Risk Governance 

With  the  start  of  NGEU  in  2021,  the  Commission  appointed  a  Chief  Risk  Officer,  established  an 
appropriate  governance  structure  and  adopted  a  High  Level  Risk  and  Compliance  Policy  (‘HLRCP’) 
covering  NGEU  borrowing,  debt  management  and  lending  operations  (‘NGEU  operations’).  The  HLRCP 
comprises an appropriate risk management and compliance framework for the oversight of the risks and 
compliance matters arising from the implementation of NGEU borrowing, debt management and lending 
operations.16 It provides an overarching framework for the risk management guidelines applicable to the 
NGEU operations by identifying all material risks arising from the implementation of the NGEU operations. 
The scope of the HLRCP is limited to the oversight of the risks and compliance matters arising solely from 
the implementation of NGEU operations. 

DecisionC(2021)  2502  established  the  role  of  the  Chief  Risk  Officer  and  the  Risk  and  Compliance 
Committee  (‘RCC’).  Both  the  role  of  the  CRO  and  the  RCC  were  further  elaborated  by  the  HLRCP.  The 
latter  supplements  the  NGEU  governance  framework  as  set  out  in  the  Decision  C(2021)2502,17  and 
further  elaborates  the  main  roles  and  responsibilities  related  to  the  risk  management  and  compliance 
framework of the NGEU operations. 

The role of the CRO is to ensure that the systems and processes used to implement the NGEU operations 
are  designed  to  ensure  protection  of  the  financial  interests  of  the  Union  and  the  sound  financial 
management  of  the  operations.  The  CRO  prepares  the  HLRCP  to  ensure  that  risks  related  to  NGEU 
operations  are  appropriately  identified,  managed  and  controlled,  and  checks  that  the  HLRCP  is 
implemented in a comprehensive and consistent manner. 

The CRO, supported by the RCC, deploys the risk management framework through internal risk policies 
and procedures. The RCC is an internal committee of the Commission whose role is to support the CRO in 
the conduct of its responsibilities. The RCC adopts positions on matters related to the risk management 
framework for NGEU operations. 

Finally,  the  CRO  reports  to  the  Member  of  the  College  responsible  for  the  Budget  with  respect  to  the 
responsibilities set out in Chapter 4 of Decision C(2022) 9700. The CRO exercises its role independently 
and enjoys autonomy in carrying out the assigned tasks and responsibilities. 

In relation to the NGEU operations, the ‘three lines of defence’ model for risk management was deployed 
to: (i) ensure the appropriate segregation of powers and duties; (ii) clearly define lines of authority; and 
(iii) ensure distinct roles and responsibilities for the management and control of risk. 

Treasury 

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

16 https://commission.europa.eu/system/files/2022-01/high_level_risk_and_compliance_policy_hlrcp_formatted.pdf. 
17 Decision C(2021) 2502 was repealed and replaced with Decision C(2022) 9700. 

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

Annual accounts of the European Union 2022 

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

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

Commission's payments are mostly denominated in EUR; 

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

 

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

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

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

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

Asset management 

The  control  of  the  various  risks  related  to  the  asset  management  activities  is  based  on  dedicated 
governance and working procedures adopted following benchmarking with the highest standards adopted 
by peer international institutions. These procedures, which were subject to various internal and external 
audits, ensure the achievement of a sound asset management. 

The  Commission  has  put  in  place  the  appropriate  governance  to  review  and  approve  technical  and 
strategic  decisions  in  relation  to  asset  management  operations.  The  asset  management  operations  are 
supervised  by  two  committees,  the  Risk  Committee  composed  of  representatives  of  DG  BUDG,  and  the 
Asset Management Board composed of representatives of DG BUDG, DG ECFIN and DG FISMA. Technical 
decisions  are  discussed  and  approved in  the  Risk  Committee,  while  strategic decisions  are  endorsed  by 
the  Risk  Committee  and  Asset  Management  Board  before  final  approval  of  the  Director  General  of  DG 
BUDG, in agreement with the Accounting Officer.  

The  asset  management  governance  guarantees  clear  delegation  of  decision-making  and  lines  of 
accountability, adequate segregation  of  duties between Front Office, Risk  Management  and Back  Office, 
clearly  defined  roles  and  well-framed  and  documented  procedures  and  processes  and  checks  and 
balances at all levels. The compliance procedures provide the framework for adequate rules for codes of 
conduct  to  manage  potential  personal  conflicts  of  interest  as  well  as  rules  to  manage  risks  of  insider 
trading.  

The  Asset  Management  Guidelines  and  internal  investment  restrictions  provide  a  solid  internal  control 
framework  to  ensure  the  safeguarding  of  assets.  In  particular,  assets  under  the  form  of  securities  are 
kept with our custodian in accordance with market best practices, while cash and deposits are placed with 
highly rated financial institutions. The safeguarding  of  financial assets is also assured by segregation of 
duties between the team responsible for initiation of securities deals and back-office team responsible for 
their  settlement  and  bank  reconciliation.  An  additional  layer  of  control  is  assured  by  accounting  team 
during  monthly  closure  reconciliation  process  when  the  portfolio  of  securities  is  reconciled  with  the 
security custodian’s statement. Any settlement discrepancies and late payments caused by counterparties 
are followed by bank reconciliation and back-office team on daily basis. For the monitoring of the respect 
of  the  control  framework,  an  exhaustive  set  of  performance  and  risk  metrics  for  the  assets  under 
management is reported periodically to the relevant stakeholders. 

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The asset management guidelines, risk and investment strategies define certain limits and restrictions in 
order to limit the exposure to credit risk of the portfolio which is limited to investment grade, except for 
EU Member States exposure.  

Common Provisioning Fund 

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

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

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

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

As the sole counterparty for all outstanding currency forwards as of 31 December 2022 is the Banque de 
France, no credit enhancements, such as collateral, netting agreements or guarantees are put in place as 
of this date. The maximum exposure to credit risk for foreign exchange derivatives having a positive fair 
value at the end of the reporting period is equal to the carrying amount on the balance sheet. 

Fines 

Provisionally cashed fines: deposits 

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

Provisionally cashed fines: BUFI portfolio 

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

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

 

 

ensuring that the funds are easily available when needed, while 

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

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

117 

 
Annual accounts of the European Union 2022 

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

Financial guarantees received 

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

EU budgetary guarantee programmes 

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

1.  Measures to limit the amount of the contingent liabilities 

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

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

2.  Measures concerning the selection of implementing partners 

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

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

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

Subsequently, the Commission will ensure (annually) the adequacy of the provisioning rate as defined in 
the  basic  act  and  its  alignment  with  the  Financial  Regulation  principles  and  with  the  financial 
programming. 

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

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

In case additional liquidity is temporarily needed there are procedures in place such as transfers between 
CPF  compartments  and  the  use  of  central  treasury  liquidity,  as  well  as  the  use  of  available  budgetary 
space (commitment and payment appropriations). 

Furthermore,  a  Steering  Committee  on  Contingent  Liabilities  arising  from  Budgetary  Guarantees  was 
established  under  the  authority  of  the  Commissioner  for  Budget  in  2020.  It  intervenes  in  matters 
covering  budgetary  guarantees  and  financial  assistance  creating  contingent  liabilities  to  the  budget 
generated from the implementation of Title X of the Financial Regulation, including those provisions laid 
down in the Internal Rules on the implementation of the general budget of the Union. This includes the 

118 

 
Annual accounts of the European Union 2022 

risk  management  framework,  relevant  common  horizontal  provisions  of  the  standard  agreements  and 
integrated  reporting  to  establish  corporate  requirements  for  the  sustainable  management  of  contingent 
liabilities. 

Financial instruments programmes 

The  implementation  of  the  EU  budget  has  relied  for  many  years  on  the  use  of  financial  instrument 
programmes. For more information on the amounts concerned – see note 2.4.2. 

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

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

6.3.  CURRENCY RISK 

Financial instruments exposure of the EU 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 

USD 

GBP 

31.12.2022 
SEK 

PLN 

Other 

EUR 

Total 

EUR million 

 83 

 6 

– 

– 

 12 

 151 

 251 

 843 
 (483) 
 89 
 84 
 616 

 (793) 
 (1) 
 (795) 
 (179) 

 25 
– 
 111 
 13 
 155 

 (0) 
– 
 (0) 
 154 

– 
– 
 14 
1 031 
1 045 

 (37) 
– 
 (37) 
1 008 

 20 
– 
 0 
 473 
 493 

 (12) 
 8 
 (4) 
 489 

29 088 
 98 
1 467 
– 
5 453 
 17 
43 522 
1 421 
1 548  79 681 

30 073 
 984 
5 684 
46 544 
83 537 

 (164) 
 19 

(5 450) 
 (50) 
 (146)  (5 500) 
1 403  74 181 

(6 456) 
 (25) 
(6 481) 
77 056 

119 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

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 

31.12.2021 
SEK 

PLN 

Other 

EUR 

Total 

EUR million 

 63 

 18 

– 

– 

 7 

 88 

 176 

 934 
 (646) 
 109 
 85 
 545 

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

 51 
– 
 98 
 24 
 192 

 (0) 
– 
 (0) 
 192 

– 
– 
 108 
1 014 
1 121 

 (62) 
– 
 (62) 
1 059 

 23 
– 
 4 
 591 
 618 

 (19) 
– 
 (19) 
 599 

23 141 
 75 
1 474 
– 
7 372 
 88 
41 455 
1 692 
1 862  73 529 

24 223 
 828 
7 780 
44 860 
77 866 

 (248) 
 (4) 

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

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

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

If the EUR had strengthened or weakened against other currencies by 10%, then it would have had the 
following impact on the economic result: 

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

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

USD 
 16 
 (20) 

USD 
 46 
 (56) 

2022 

GBP 
 (14) 
 17 

2021 

GBP 
 (17) 
 21 

EUR million 

SEK 
 (44) 
 54 

EUR million 

SEK 
 (54) 
 67 

PLN 
 (92) 
 112 

PLN 
 (96) 
 118 

Borrowing and lending activities for NGEU and financial assistance 

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

Treasury 

Own  resources  paid  by  Member  States  in  currencies  other  than  EUR  are  kept  on  the  own  resources 
accounts  in  accordance  with  Council  Regulation  (EU,  Euratom)  No  609/2014  (as  amended  by  Council 
Regulation  (EU,  Euratom)  2016/804).  They  are  converted  into  EUR  when  they  are  needed  for  the 
execution of payments. The procedures applied for the management of these funds are laid down by the 
above mentioned regulation. In a limited number of cases, these funds are directly used for payments to 
be executed in the same currencies. 

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

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

120 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fines 

Annual accounts of the European Union 2022 

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

Budgetary guarantees 

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

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

Common Provisioning Fund 

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

The  loans  subrogated  to  the  EU  as  result  of  calls  on  the  fund  following  payment  defaults  by  a  loan 
beneficiary – see note 2.4.1.2 – are carried out in their original currency and therefore expose the EU to 
currency risk. For the subrogated loans, there are no activities to compensate foreign currency variations 
(‘hedging‘ activities) due to uncertainty relating to the loans’ repayment timing. 

6.4.  INTEREST RATE RISK 

The  following  table  illustrates  the  interest  rate  sensitivity  of  debt  securities  and  ETFs  by  disclosing  the 
impact  that  a  change  in  interest  rates  of  +/-  100  basis  points  (1%)  would  have  on  the  EU  economic 
result. 

2022: Financial assets at FVSD 

2021: Financial assets at FVSD 

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

EUR million 

Economic result 

 (741) 
 784 
 (622) 
 660 

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

Borrowing and lending activities for NGEU and financial assistance 

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

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

The NGEU holds cash in order to maintain a defined safety buffer as part of a diversified funding strategy 
while avoiding any excess balances. The NGEU cash is kept at  the European Central Bank. Since 4 April 
2022  the  Euro  money  market  short  term  interest  rate  applies  to  any  outstanding  cash  balance. 
Previously, the outstanding cash balance was subject of ECB deposit facility rate that was  -0.5%. Based 

121 

 
 
 
 
Annual accounts of the European Union 2022 

on  a  mutual  agreement,  only  outstanding  cash  balances  over  EUR  20  billion  were  subject  to  negative 
interest at the ECB. Based on NGEU cost allocation methodology, interest not allocated to loans or non-
repayable  support  are  subject  of  invoicing  to  loans  beneficiaries  and  EU  budget  in  form  of  Liquidity 
management costs that can be positive or negative depending on the evoluition of interest rates applied 
on cash balances.  

Treasury 

Except  for  the  borrowing  related  to  the  NGEU  programme,  the  Commission  does  not  borrow  money  to 
fund  its  operational  expenditure.  Beyond  the  interest  rate  exposure  on  NGEU,  interest  is  calculated  on 
balances  held  on  the  different  bank  accounts.  The  Commission  has  therefore  put  in  place  measures  to 
ensure that interest earned (positive or negative) on  its bank accounts regularly  reflect market interest 
rates, as well as their possible fluctuation. 

Accounts opened with Member States treasuries for own resources receipts are non-interest bearing and 
free of charge. Accounts held with national central banks (own resources and other) may be remunerated 
at the official rates applied by each institution. During the period of negative interest environment (until 
September  2022),  some  of  the  remunerations  applied  to  these  accounts  were  negative.  Cash 
management  procedures  are  adapted  according  to  the  market  interest  conditions  in  order  to  minimise 
balances kept on these accounts when negative interests applied and appropriate ceilings are respected 
according  to  the  banks  conditions.  Own  resources  accounts  are  protected  from  any  impact  of  negative 
interest  in  accordance  with  Council  Regulation  (EU,  Euratom)  No  609/2014  (as  amended  by  Council 
Regulation (EU, Euratom) 2016/804). 

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

Fines 

The  provisionally  cashed  fines  are  invested  in  a  portfolio  of  long-term  bonds  with  an  average  portfolio 
duration of 1.33 years. 

Common Provisioning Fund 

The  funds  in  the  CPF  are  invested  in  a  portfolio  of  long-term  bonds  and  corporate  ETFs  with  a  total 
average portfolio duration of 3.17 years. 

ECSC in liquidation 

The ECSC in liquidation amounts are invested in a portfolio of long-term bonds with an average portfolio 
duration of 3.17 years. 

6.5.  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 

122 

EUR million 
31.12.2022 

EUR million 
31.12.2021 

204 354 
46 544 
5 684 
24 647 
 984 

55 502 
 8 
337 723 

163 568 
44 860 
7 780 
19 326 
 828 

55 267 
– 
291 628 

 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

In  addition,  the  EU  is  indirectly  exposed  to  the  credit  risk  through  its  investments  in  MMFs,  corporate 
ETFs  and  pooled  portfolios  of  debt  securities  (see  note  2.4.2.1),  which  may  impact  their  prices 
(see note 6.7). 

Loans: credit quality  

31.12.2022 

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 
Net carrying amount  

12 849 
62 240 
106 537 
11 923 
193 549 
 (55) 
193 494 

– 
– 
– 
13 094 
13 094 
(2 361) 
10 732 

– 
– 
– 
 29 
 29 
 (27) 
 2 

12 849 
– 
62 240 
– 
106 537 
– 
25 160 
 114 
 114  206 786 
(2 431) 
 126  204 354 

 13 

EUR million 

31.12.2021 

Stage 1   Stage 2 

Stage 3 

POCI 

Total  

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

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

– 
– 
– 
5 965 
5 965 
 (299) 
5 665 

– 
– 
– 
 29 
 29 
 (26) 
 3 

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

– 

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

 

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

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

 

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

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

D and equivalent 

 

The EU  uses these external  rating agencies’ categories as a reference point notably for financial 
instruments  and  commercial  banks,  but  may,  after  making  its  own  analysis  of  individual  cases, 
keep  amounts  in  one  of  the  above  risk  categories  even  though  one  or  more  of  the  above 
mentioned rating agencies may have downgraded the corresponding counterparty.  

The  loans  in  the  non-investment  grade  are  mainly  financial  assistance  loans  to  partner  countries  in 
financial difficulties, also to some Member States which are rated in the upper limit of this grade. All loans 
to Member States are in Stage 1. Stage 2 includes EUR 11.9 billion of MFA and Euratom loans to Ukraine. 
The POCI loans are the subrogated loans from the EFSI and ELM programmes.  

123 

 
 
   
 
 
 
   
 
 
 
 
 
   
 
 
 
   
 
 
 
 
 
 
Borrowing and lending activities for NGEU and financial assistance 

Annual accounts of the European Union 2022 

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

Loans provided to Ukraine under the exceptional MFA programme (EUR 6 billion disbursed  in 2022) are 
firstly covered by their compartment in CPF, and then also by additional Member States guarantees. 

Loans provided to Member States under the SURE instrument are underpinned by a system of voluntary 
guarantees  from  Member  States,  amounting  to  25%  of  the  maximum  ceiling  available  for  the  related 
financial assistance. 

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

Loans: Movement in impairment loss allowance  

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 

Stage 1   Stage 2 

Stage 3 

POCI 

Total  

EUR million 

 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 

The  additional  impairment  loss  allowance  on  Stage  2  loans  refers  mainly  to  MFA  and  Euratom  loans  to 
Ukraine (see note 2.4.1.1). 

Loans: Staging assessment 

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

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

Stage 1 – No significant increase in credit risk  

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

Stage 2 – Significant increase in credit risk 

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

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

124 

 
 
   
 
 
 
Annual accounts of the European Union 2022 

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

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

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

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

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

Stage 3 – Credit impaired loans  

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

 

 

 

It is becoming probable that a borrower will enter bankruptcy or other financial reorganisation; 

The borrower has a rating class of D published by an external rating agency; and 

The borrower is in default under any  financial  obligation towards  the EU, or in case of loans for 
financial assistance, if the borrower is in default to any other international organisation financing 
the programme. 

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

Purchased or originated as credit impaired (‘POCI’) 

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

Loans: ECL measurement 

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

 
 
 

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

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

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

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

125 

 
Annual accounts of the European Union 2022 

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

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

Cash and cash equivalents: credit quality  

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

Treasury 

EUR million 

31.12.2022 

31.12.2021 

40 769 
3 675 
1 343 
 757 
46 544 
- 
46 544 

40 716 
3 650 
 306 
 189 
44 860 
– 
44 860 

The amounts of cash and cash equivalents in the table above relate mainly to the cash managed by the 
Commission treasury. Most of the Commission's treasury resources are kept, in accordance with Council 
Regulation (EU, Euratom) No 609/2014 (as amended by Council Regulation 804/2016) on own resource 
accounts  opened  by  Member  States  for  the  payment  of  their  own  resources  contributions  (mainly  GNI, 
VAT and TOR). All such accounts are held with Member States' treasuries or national central banks. These 
institutions carry the lowest credit (or counterparty) risk for the Commission as the exposure is with its 
Member States. For the part of the Commission's treasury resources kept with commercial banks in order 
to cover the execution of payments, replenishment of these accounts is made on a just-in-time basis and 
is  automatically  managed  by  the  treasury  cash  management  system.  Minimum  cash  levels,  which  take 
into  account  the  average  amount  of  daily  payments  executed  from  it,  are  kept  on  each  account.  As  a 
consequence the total amount kept overnight on these accounts remains constantly at low levels (overall 
less  than  EUR  54  million  on  average,  spread  over  around  25  accounts)  and  so  it  is  ensured  that  the 
Commission's risk exposure is limited. These amounts should be viewed with regard to the daily overall 
treasury balances which fluctuated in 2022 between EUR 7 billion and EUR 38 billion, and with an overall 
amount of payments made from Commission bank accounts in 2022 that exceeded EUR 175 billion. 

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

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

  Beyond the minimum credit rating requirements specified in the calls for tender, the counterparty 
risk management policy applied monitors the ratings and defines a maximum exposure on each 
financial  institution.  This  ceiling,  the  maximum  overall  exposure  in  cash,  deposits  and  financial 
guarantees  per  counterparty,  is  calculated  taking  into  account  the  creditworthiness  (long  term 
credit  rating)  and  the  capitalisation  of  the  financial  sector  entity.  The  EC  counterparty  risks  are 
monitored and reported on regularly; and 

 

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

NGEU 

Lending and borrowing instruments for financial assistance do not, in general, keep any outstanding cash 
balances  due  to  underlying  back-to-back  principle  of  the  financial  assistance  loans.  However,  with 
implementation  of  diversified  funding  strategy  for  the  NGEU  instrument,  NGEU  holds  cash  with  the 
objective  of ensuring  that amounts held on the  NGEU  bank account are  sufficient  to meet all upcoming 

126 

 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

disbursement  needs  and  maintaining  a  defined  safety  buffer  while  avoiding  any  excess  balances.  The 
cash is placed on a bank account at the ECB, thus, the credit risk is very low. 

Provisionally cashed fines: deposits 

Deposits  held  in  commercial  banks  for  fines  provisionally  cashed  before  2010  have  been  largely 
decreased  in  2022.  These  deposits  are  selected  by  tender  procedure  and  the  above  described 
counterparty risk policy is applied. 

Receivables: credit quality  

Not due 

Past due  

   0-30 days  31-90 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 

1 613 
 (2) 

1 611 

2 785 
 (2) 

2 783 

 18 
 (2) 

 16 

 15 
 (1) 

 14 

Past due   Past due   Past due  
91 days - 
1 year 
 21 
 (13) 

1 992 
 (150) 

> 1 year 

 14 
 (5) 

EUR million 
Total 

3 658 
 (172) 

 9 

 9 
 (4) 

 5 

 8 

1 842 

3 486 

 578 
 (18) 

1 453 
 (147) 

4 840 
 (173) 

 560 

1 305 

4 667 

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

Financial assets at FVSD – debt securities: credit quality 

Common Provisioning Fund 

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

Provisionally cashed fines: BUFI portfolio 

For sovereign debt investments from  provisionally cashed fines imposed as from  2010, the Commission 
takes on the exposure to  credit  risk. The weighted average credit rating of  the  portfolio is AA-  (S&P or 
equivalent). 

Financial guarantees received 

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

ECSC in liquidation 

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

Financial assets at FVSD – derivatives: credit quality 

The  derivative  assets  mainly  relate  to  the  guarantees  on  equity  portfolios  and  to  currency  forward 
contracts.  Therefore,  the credit  risk  is  limited  to  the  counterparty  risk.  The  guarantee  on  equity  will be 
settled with the EU implementing partner, the EIB Group, which is rated AAA. The sole counterparty for 
all  outstanding  currency  forwards  as  of  31  December  2022  is  the  Banque  de  France,  hence  no  credit 
enhancements, such as collateral, netting agreements or guarantees are put in place as of this date. 

127 

 
 
 
 
 
 
 
 
 
 
 
 
Financial guarantee contracts: credit quality 

Annual accounts of the European Union 2022 

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   

Total 

EUR million 

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

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

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

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

6 456 

3 263 

3 194 

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

Financial guarantee contracts: staging policies 

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

Stage 1 – No significant increase in credit risk  

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

Stage 2 – Significant increase in credit risk 

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

 

 

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

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

128 

 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

 

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

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

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

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

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

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

In 2022, EUR 2.8 billion of EFSI guarantees were moved from Stage 2 to Stage 1 as the average credit 
risk  of  the  guaranteed  portfolio  (also  considering  the  impact  of  the  merge  with  the  InvestEU  debt 
portfolios – see note 4.1.1) has decreased. This led to a remeasurement effect and a reduction of ECL for 
EFSI guarantee, as the impairment allowance is measured at 12-month ECL at the end of 2022 compared 
to life-time ECL at the end of 2021. Out of the EUR 1.1 billion remeasurement leading to a reduced ECL 
on guarantees in Stage 2, EUR 0.6 billion relates to the EFSI SME window. Out of the outstanding ECL for 
guarantees  in  Stage  2  of  EUR  3.1  billion  as  at  31  December  2022,  EUR  2.4  billion  relates  to  the  ELM 
guarantees (see note 4.1.1) . This includes EUR 1.1 billion life-time ECL for the EIB exposure in Ukraine 
(EUR 4.1 billion, of which EUR 0.5 billion loans are not yet disbursed) guaranteed by the EU.  

Budgetary guarantees 

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

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

6.6.  LIQUIDITY RISK 

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

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

Undiscounted contractual cash-flows 

< 1 year 
(23 204) 
(55 341) 
 (318) 
(78 862) 
(23 769) 
(46 372) 
 (218) 
(70 358) 

1-5 years  > 5 years 
(280 075) 
– 
 (771) 
(280 846) 
(180 660) 
– 
 (890) 
(181 550) 

(80 495) 
– 
 (711) 
(81 206) 
(45 030) 
– 
 (830) 
(45 860) 

Total 
(383 774) 
(55 341) 
(1 800) 
(440 914) 
(249 459) 
(46 372) 
(1 938) 
(297 769) 

EUR million 
Carrying 
amount 
(344 303) 
(55 341) 
(1 517) 
(401 161) 
(236 720) 
(46 372) 
(1 605) 
(284 697) 

129 

 
 
 
 
 
 
 
 
 
 
 
Maturity analysis of derivative financial liabilities by remaining contractual maturity 

Annual accounts of the European Union 2022 

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 

FGCs at 31.12.2022 
FGCs at 31.12.2021 

Maximum amount of guarantee 

  < 1 year  1-5 years  > 5 years 
(4 902) 
 (1) 

(65 109) 
(55 381) 

(13 332) 
 (878) 

Total 
(83 343) 
(56 259) 

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

Borrowing activities for NGEU and financial assistance 

The first recourse for the repayment of borrowings for financial assistance is the timely collection of the 
related  financial  assistance  and  NGEU  loan  repayments.  However,  there  are  additional  safeguards  that 
could be applied in case of payment defaults or payment delays of borrowers.  

For MFA and Euratom loans to third countries, the Guarantee Fund for external actions compartment of 
the CPF provides for a liquidity reserve. Therefore, the available assets of this fund would be used first in 
order  to  repay  the  related  borrowings  (but  only  after  a  first  recourse  to  third  party  guarantors  for 
Euratom  –  see  note  6.4).  If  at  any  moment  the  available  assets  should  prove  insufficient  to  cover  the 
actual losses, the Commission will activate measures to provide for additional resources (e.g. recourse to 
temporary  use  of  Commission’s  treasury  liquidity,  recourse  to  temporary  transfers  and/or  additional 
expenditure  from  the  EU  budget).  Loans  provided  to  Ukraine  under  the  exceptional  MFA  programme 
(EUR 6  billion  disbursed  in  2022)  are  covered  not  only  by  their  compartment  in  CPF,  but  also  by 
additional  Member  States  guarantees,  in  case  the  amount  in  the  CPF  would  not  be  sufficient  (see  note 
2.4.1.1). 

For NGEU, the Commission may also apply active cash management and short-term borrowing in order to 
service EU debts.  

For  all  financial  assistance  borrowings  as  well  as  for  the  NGEU  borrowings,  the  Commission  may  call 
resources up to the available own resources margin in order to service the EU debts. The own resources 
legislation  fixes  the  ceiling  for  own  resources  to  cover  annual  appropriations  for  payment  at  1.40%  of 
Member States' GNI, plus an additional temporary increase of 0.6 percentage points for NGEU. The 2022 
budget included a total of own resources to finance the expenditure of 1.01% of GNI. This means that at 
31 December 2022 there existed an available margin of 0.99% to cover its liabilities. To this end, the EU 
is  entitled  to  call  upon  Member  States  to  ensure  compliance  with  the  EU's  legal  obligation  towards  its 
lenders. 

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

Treasury 

EU  budget  principles  ensure  that  overall  cash  resources  for  a  given  year  are  always  sufficient  for  the 
execution of all payments. In fact, the total Member States contributions together with the miscellaneous 
revenue  equal  the  amount  of  payment  appropriations  for  the  budgetary  year.  Member  States’ 

130 

 
 
 
 
 
 
 
 
 
 
 
 
 
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contributions, however, are received in twelve monthly instalments throughout the year and based on the 
adopted  budget,  while  payments  are  subject  to  operational  needs.  Moreover,  in  accordance  with  the 
Council Regulation (EU, Euratom) No 609/2014 (on the methods and procedure for making available own 
resources,  amended  by  Council  Regulation  (EU,  Euratom)  2016/804),  Member  States’  contributions 
relating  to  amending  budgets  approved  in  a  given  month  (N)  only  become  available  either  on  the  first 
working day of the month N+1 (if approved before the 16th of the given month) or on the first working 
day  of  month  N+2  (if  approved  on  the  16th  or  later  of  that  given  month),  while  the  related  payment 
appropriations are immediately available. 

In  order  to  ensure  that  available  treasury  resources  are  always  sufficient  to  cover  the  payments  to  be 
executed in any given month, procedures regarding regular cash forecasting are in place. Own resources 
or additional funding can be called up in advance from Member States if needed, up to certain limits and 
under certain conditions provisioned  under  Council Regulation (EU, Euratom) No 609/2014  amended by 
Council  Regulation  (EU,  Euratom)  2016/804.  Operational  needs  and  overall  budgetary  restrictions  in 
recent  years  have  resulted  in  the  need  for  increased  monitoring  of  the  rhythm  of  payments  during  the 
year. In addition to the above, in the context of the Commission's daily treasury operations, automated 
cash  management  tools  ensure  that  sufficient  liquidity  is  available  on  each  of  the  Commission's  bank 
accounts, on a daily basis. 

Fines 

The BUFI fund, where provisionally paid fines are invested, is managed according to the principle that the 
assets shall have a sufficient degree of liquidity and mobilisation in relation to the relevant commitments. 
The  portfolio  is  composed  of  mostly  highly  liquid  securities  that  can  be  sold  to  meet  short-term  cash 
outflows. In addition, the share of cash, cash equivalents and securities maturing within 1 year is 56%. 

Budgetary guarantees 

The maturity analysis for financial guarantees is presented using the prudent approach, under which the 
maximum amount of the guarantee given is allocated to the earliest period in which the guarantee could 
be called. Given that most of the EU guarantees are on first demand, a significant amount is allocated to 
the first time band. However, the probability that the EU will be called under all guarantees for the entire 
amount  in  the  first  period  is  remote.  Moreover,  the  amount  that  the  EU  expects  to  lose  is  often  much 
lower  then  the  guarantee  ceilling,  therefore  the  amount  of  the  liquidity  risk  needs  to  be  seen  in  the 
conjunction with the carrying amount of the guarantee liabilities. 

A  key  objective  of  the  risk  management  framework  of  contingent  liabilities  is  to  ensure  that  the  EU 
budget  can,  at  any  time,  honour  its  obligations  without  disrupting  the  normal  implementation  of  the 
budget. This also entails the mitigation of the liquidity risk related to budgetary guarantees, i.e. the risk 
that the Union would have insufficient funds to fulfil in a timely manner all its guarantee-related payment 
obligations  (which  might  then  lead  to  for  example  the  crowding  out  of  other  expenses  and  the 
postponement of payments to the following budgetary years). 

In this respect, each budgetary guarantee is backed by sufficient provisioning paid into the CPF so as to 
ensure there is always enough liquidity to pay guarantee calls in a timely manner.  

The  EU  monitors  on  a  regular  basis  the  adequacy  of  the  provisioning  rate  of  each  budgetary  guarantee 
programme and reports18 every year on its estimate as to whether those amounts are sufficient to cover 
the risk for next 5 years with a defined level of certainty. 

Furthermore,  there  are  additional  safeguard  procedures  in  place  (temporary  transfers  between  CPF 
compartments and the use of central treasury liquidity) to ensure sufficient liquidity is available. 

Common Provisioning Fund 

The CPF is managed according to the principle that the assets shall have a sufficient degree of liquidity 
and mobilisation in relation to the relevant commitments. The portfolio is composed of liquid assets that 
can be sold to meet short-term cash outflows if necessary. In addition the share of cash, cash equivalents 
and securities maturing within 1 year is 18%. 

18 For  example  in  the  Working  Document  XI  attached  to  the  Draft  Budget  that  presents  the  implementation  of 
Budgetary  Guarantees,  the  Common  Provisioning  Fund  and  the  assessment  of  the  sustainability  of  the  contingent 
liabilities  arising  from  budgetary  guarantees  and  financial  assistance  pursuant  to  Article  41(5)  of  the  Financial 
Regulation. 

131 

 
                                                 
Annual accounts of the European Union 2022 

The settlement of derivative contracts is gross and is based on their contractual maturity. Obligations are 
honoured via sales of USD-denominated assets and/or a swap transaction, whereby it is possible that a 
cash  outflow  arises  due  to  foreign  exchange  differences.  No  liquidity  management  is  necessary  with 
regard to collateral or margin requirements, as the current hedging counterparty accepts to operate with 
the Commission without any requirements for collateral or margin calls.  

6.7.  OTHER PRICE RISK 

As  at  31  December  2022,  the  EU  is  exposed  to  other  price  risks  (equity  risk)  arising  from  non-quoted 
equity investments (such as venture capital and other investment funds), money market funds (such as 
the  EIB  Unitary  Fund)  and  investments  in  pooled  portfolios  (see  note  2.4.2.1),  as  well  as  through 
guarantees covering non-quoted equity and quasi equity investments, treated as derivatives at fair value 
through surplus or deficit (see note 2.4.2.2). 

Equity  price  risk  refers  to  the  risk  that  the  fair  values  of  equity  investments  change  as  the  result  of 
fluctuations  in  the  levels  of  equity  prices  and/or  the  value  of  the  guaranteed  equity  investments.  The 
effect  on  surplus  or  deficit  of  a  10%  value  increase  or  decrease  of  the  above-mentioned  instruments 
would be as follows: 

Equity investments 

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 

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

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

* The risk of guarantees on equity is based on the notional amount that is covered by the guarantee. 

The EU invests in, or guarantees, unquoted assets whose values are not publicly available. Most of these 
financial instruments are implemented by the entrusted entities, who are experts in the industry and they 
assess and monitor those assets on a regular basis. 

132 

 
 
 
 
 
Annual accounts of the European Union 2022 

7.  RELATED PARTY DISCLOSURES 

7.1.  RELATED PARTIES 

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

7.2.  KEY MANAGEMENT ENTITLEMENTS 

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

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

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

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

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

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

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

133 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

KEY MANAGEMENT FINANCIAL ENTITLEMENTS 

Entitlement (per employee) 

EUR 
Category 1  Category 2  Category 3  Category 4  Category 5 

Basic salary (per month) 

31 251.88 

28 307.86 - 
29 440.18 

22 646.29 - 
25 477.07 

24 458.00 - 
26 043.24 

14 399.72 - 
22 646.29 

Residential/Expatriation allowance  

15% 

15% 

15% 

15% 

0-4%-16% 

Family allowances: 

Household (% salary) 

Dependent child 

Pre-school 

Education, or 

Education outside place of work 

2% + 210.21  2% + 210.21  2% + 210.21  2% + 210.21  2% + 210.21 

 459.32 

 112.21 

 311.65 

 623.30 

 459.32 

 112.21 

 311.65 

 623.30 

 459.32 

 112.21 

 311.65 

 623.30 

 459.32 

 112.21 

 311.65 

 623.30 

N/A 

N/A 

 459.32 

 112.21 

 311.65 

 623.30 

N/A 

N/A 

Presiding judges allowance 

N/A 

N/A 

 715.05 

Representation allowance 

1 693.58 

1 088.45 

 715.05 

Annual travel costs 

N/A 

N/A 

N/A 

N/A 

Reimbursed 

Transfers to Member State: 

Education allowance* 

% of salary* 

% of salary with no cc 

Yes 

5% 

Yes 

5% 

Yes 

5% 

Yes 

5% 

Yes 

5% 

max 25% 

max 25% 

max 25% 

max 25% 

max 25% 

Representation expenses 

Reimbursed 

Reimbursed 

Reimbursed 

N/A 

N/A 

Taking up duty: 
Installation expenses 
(Cat. 1-4: two months of basic salary) 
Family travel expenses 

62 503.76 

Reimbursed 

56 615.72 - 
58 880.36 
Reimbursed 

45 292.58 - 
50 954.15 
Reimbursed 

48 915.99 - 
52 086.47 
Reimbursed 

Reimbursed 

Reimbursed 

Moving expenses 

Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

Leaving office: 
Resettlement expenses 
(Cat. 1-4: one month of basic salary) 
Family travel expenses 

Moving expenses 

Transition (% salary)** 

Sickness insurance 

31 251.88 

Reimbursed 

28 307.86 - 
29 440.18 
Reimbursed 

22 646.29 - 
25 477.07 
Reimbursed 

24 458.00 - 
26 043.24 
Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

40% - 65% 

40% - 65% 

40% - 65% 

40% - 65% 

N/A 

Covered 

Covered 

Covered 

Covered 

Covered 

Pension (% salary, before tax) 

Max 70% 

Max 70% 

Max 70% 

Max 70% 

Max 70% 

Deductions: 

Community tax 

8% - 45% 

8% - 45% 

8% - 45% 

8% - 45% 

8% - 45% 

Sickness insurance (% salary) 

1.7% 

1.7% 

1.7% 

1.7% 

Special levy on salary 

Pension deduction 

Number of persons at year-end 

* with correction coefficient (‘CC’) applied 

** paid for the first 3 years following departure 

7% 

N/A 

 3 

7% 

N/A 

 8 

7% 

N/A 

 93 

7% 

N/A 

 27 

1.7% 

6-7% 

10.1% 

 112 

134 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 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. 

135 

 
Annual accounts of the European Union 2022 

9. 

SCOPE OF CONSOLIDATION 

A. CONTROLLED ENTITIES (54) 
1. Institutions and consultative bodies (11) 
European Parliament 
European Council 
European Commission 
European Court of Auditors 
Court of Justice of the European Union 
European External Action Service 

2. EU Agencies (41) 
2.1. Executive Agencies (6) 

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

European Education and Culture Executive Agency 
(EACEA) 

European Innovation Council and SMEs Executive 
Agency (EISMEA) 

European Health and Digital Executive Agency 
(HaDEA)  

European Research Council Executive Agency 
(ERCEA) 

European Research Executive Agency (REA) 

European Climate, Infrastructure and Environment 
Executive Agency (CINEA)  

2.2. Decentralised Agencies (35) 
European Maritime Safety Agency (EMSA) 
European Medicines Agency (EMA) 
European Chemicals Agency (ECHA) 
European Institute for Gender Equality (EIGE) 
European Environment Agency (EEA) 
European Banking Authority (EBA) 
European Union Agency for Asylum (EUAA) 
European Union Agency for Cybersecurity (ENISA) 

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

European Union Agency for Law Enforcement 
Training (CEPOL) 

European Foundation for the Improvement of Living 
and Working Conditions (Eurofound) 

European Union Agency for the Space Programme 
(EUSPA) 

European Monitoring Centre for Drugs and Drug 
Addiction (EMCDDA) 

European Union Agency for Criminal Justice 
Cooperation (Eurojust) 

European Union Agency for Law Enforcement 
Cooperation (EUROPOL) 

European Agency for Safety and Health at Work 
(EU-OSHA) 

European Union Agency for Fundamental Rights 
(FRA) 

European Centre for Disease Prevention and Control 
(ECDC) 

European Insurance and Occupational Pensions 
Authority (EIOPA) 

European Centre for the Development of Vocational 
Training (CEDEFOP) 

Translation Centre for the Bodies of the European 
Union (CdT) 

European Union Agency for the Cooperation of 
Energy Regulators (ACER) 

European Joint Undertaking for ITER and the 
Development of Fusion Energy (Fusion for Energy) 

Agency for Support for the Body of European 
Regulators for Electronic Communications (BEREC 
Office) 

European Union Agency for the Operational 
Management of Large-Scale IT Systems in the Area 
of Freedom, Security and Justice (eu-LISA) 

European Border and Coast Guard Agency 
(FRONTEX) 

European Labour Authority (ELA)  
3. Other controlled entities (2) 

European Coal and Steel Community in Liquidation 
(ECSC i.L.) 
B. ASSOCIATES (1) 
European Investment Fund (EIF) 

European Public Prosecutor's Office (EPPO)  

European Institute of Innovation and Technology 
(EIT) 

136 

 
 
 
 
 
 
 
 
 
 
 
 
 
MINOR ENTITIES 

Annual accounts of the European Union 2022 

The entities listed below have not been consolidated using the equity method in the 2022 EU consolidated 
financial statements on the basis of immateriality: 

MINOR ENTITES (8) 
Circular Bio-based Europe Joint Undertaking (CBE JU) 
Clean Aviation Joint Undertaking (CAJU) 
Clean Hydrogen Joint Undertaking (Clean H2 JU) 
Europe’s Rail Joint Undertaking (EU-RAIL JU) 
Innovative Health Initiative Joint Undertaking (IHI JU) 
Key Digital Technologies Joint Undertaking (KDT JU) 
Single European Sky ATM Research 3 Joint Undertaking (SESAR 3 JU) 
European High Performance Computing Joint Undertaking (EuroHPC) 

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

137 

 
Annual accounts of the European Union 2022 

EUROPEAN UNION 
FINANCIAL YEAR 2022 

BUDGETARY IMPLEMENTATION REPORTS 
AND EXPLANATORY NOTES 

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

138 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

CONTENTS 

EU BUDGET RESULT ............................................................................... 140 

STATEMENTS OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS ........... 141 

NOTES TO THE BUDGETARY IMPLEMENTATION REPORTS ........................... 143 

3.1. 

3.2. 

3.3. 

3.4. 

3.5. 

3.6. 

3.7. 

3.8. 

THE EU BUDGET FRAMEWORK ........................................................... 143 

MULTIANNUAL FINANCIAL FRAMEWORK 2021-2027 ............................. 143 

MFF DETAILED HEADINGS (PROGRAMMES) ......................................... 146 

NextGenerationEU ............................................................................ 146 

ANNUAL BUDGET ............................................................................. 147 

REVENUE ........................................................................................ 149 

CALCULATION OF THE BUDGET RESULT .............................................. 150 

RECONCILIATION OF ECONOMIC RESULT WITH BUDGET RESULT .......... 152 

IMPLEMENTATION OF THE 2022 EU BUDGET ............................................. 154 

IMPLEMENTATION OF EU BUDGET REVENUE ............................................. 155 

5.1. 

SUMMARY OF THE IMPLEMENTATION OF EU BUDGET REVENUE ............. 155 

IMPLEMENTATION OF EU BUDGET EXPENDITURE ...................................... 156 

6.1. 

6.2. 

6.3. 

6.4. 

6.5. 

6.6. 

6.7. 

6.8. 

6.9. 

MFF: BREAKDOWN & CHANGES IN COMMITMENT & PAYMENT 
APPROPRIATIONS ............................................................................ 156 

MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS ................. 157 

MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ....................... 158 

MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) .................. 159 

MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN ..................... 160 

MFF: OUTSTANDING COMMITMENTS BY APPROPRIATIONS TYPE ............ 161 

DETAILED MFF: BREAKDOWN AND CHANGES IN COMMITMENT AND 
PAYMENT APPROPRIATIONS .............................................................. 162 

DETAILED MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS .. 168 

DETAILED MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ........ 174 

6.10.  DETAILED MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) ... 181 

6.11.  DETAILED MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN ...... 187 

6.12.  DETAILED MFF: OUTSTANDING COMMITMENTS BY APPROPRIATIONS TYPE

191 

IMPLEMENTATION OF THE BUDGET BY INSTITUTION ................................. 197 

7.1. 

7.2. 

7.3. 

IMPLEMENTATION OF BUDGET REVENUE ............................................ 197 

IMPLEMENTATION OF COMMITMENT APPROPRIATIONS......................... 198 

IMPLEMENTATION OF PAYMENT APPROPRIATIONS ............................... 199 

IMPLEMENTATION OF THE AGENCIES' BUDGETS ....................................... 200 

8.1. 

8.2. 

BUDGET REVENUE ........................................................................... 200 

COMMITMENT AND PAYMENT APPROPRIATIONS BY  AGENCY ................ 201 

139 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

EU BUDGET RESULT 

Note 

a 

b 

c 

d 

e 

Revenue for the financial year 

Payments against current year appropriations 

Payment appropriations carried over to year N+1 

Cancellation of unused appropriations carried over from year N-1 

Evolution of assigned revenue (B)-(A) 

     Unused appropriations at the end of current year (A) 

     Unused appropriations at the end of previous year (B) 

f 

Exchange rate differences for the year 

Budget result 

EUR million 

2022 

2021 

245 265 

239 596 

(239 157) 

(226 175) 

(2 452) 

(4 244) 

 80 

 265 

(1 121) 

(6 338) 

15 152 

14 032 

 (97) 

2 519 

14 032 

7 694 

 126 

3 230 

The budget result of the EU is returned to the Member States in 2023 through deduction of their amounts 
due.  It  is  calculated  in  accordance  with  Article 1(1)  of  Council  Regulation  (EU,  Euratom)  No 608/2014 
laying  down  implementing  measures  for  the  system  of  own  resources.  More  information  can  be  found 
under section 3.7 Calculation of the budget result. 

a.  Revenue  for  the  financial  year:  table  5.1  “Summary  of  the  implementation  of  EU  Budget 

Revenue”, column 8 “Total Revenue”. 

b.  Payments  against  current  year  appropriations:  table  6.3  “MFF  –  Implementation  of  Payment 
appropriations”, column 2 “Payments made from adopted budget and column 4 “Payments made 
from assigned revenue”. 

c.  Payment appropriations carried over to year N+1: table 6.3 “MFF  –  Implementation of Payment 

appropriations”, column 7 automatic carry-overs plus column 8 carry-over by decision. 

d.  Cancellation  of  unused  payment  appropriations  carried  over  from  year  N-1:  takes  into  account 
the amount of payment appropriations carried over (automatically and on decision) at the end of 
previous year and  the current  year’s  “Payments made  from  carryovers” as in column 3 of  table 
6.3 “MFF – Implementation of Payment appropriations”. 

e.  Evolution  of  the  total  assigned  revenue  appropriations  at  year-end:  calculates  the  difference  of 
the  amount  of  assigned  revenue  appropriations  at  the  end  of  previous  year  (plus)  and  the 
amount  of  assigned  revenue  appropriations  at  the  end  of  the  current  year  (as  in  column  9  of 
table 6.3 “MFF – Implementation of Payment appropriations” - minus) to obtain the net variation 
of assigned revenue in the current year. 

f.  Exchange rate differences include realised and non-realised exchange rate differences. 

140 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

STATEMENTS OF COMPARISON OF BUDGET AND 
ACTUAL AMOUNTS 

Budget revenue 

1  Own resources 

  11 - Sugar levies 

  12 - Customs duties 

  13 - VAT 

  14 - GNI 

16 - Reduction of GNI-based contribution granted to 
certain Member States 

  17 - Plastic packaging waste 

2  Surpluses, balances and adjustments 

3  Administrative revenue 

4  Financial revenue, default interest and fines 

5  Budgetary guarantees, borrowing-and-lending operations 

6 

Revenue, contributions and refunds related to union 
policies 

EUR million 

Initial 
budget 
adopted 

Final 
adopted 
budget 

Entitlements 
established 

Revenue 

157 701 

153 928 

157 320 

155 758 

0 

17 913 

19 071 

0 

23 765 

19 714 

 (1) 

27 419 

19 666 

 (1) 

25 857 

19 666 

114 719 

104 088 

103 880 

103 880 

– 

5 997 

0 

1 791 

 115 

0 

– 

6 361 

2 980 

1 791 

 454 

0 

 19 

6 337 

3 233 

2 656 

16 635 

62 203 

 19 

6 337 

3 227 

2 607 

 596 

62 203 

10 997 

10 884 

26 689 

20 874 

  Total 

170 603 

170 038 

268 736 

245 265 

     of which Next Generation EU (NGEU) 

– 

– 

62 409 

62 409 

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 

21 775 

21 845 

33 071 

27 330 

2  Cohesion, Resilience and Values 

56 039 

67 805 

325 372 

218 907 

  2a. Economic, social and territorial cohesion 

49 709 

61 314 

76 068 

74 632 

  2b. Resilience and values 

6 330 

6 491 

249 303 

144 275 

3  Natural Resources and Environment 

     of which: Market related expenditure and direct 
payments 

4  Migration and Border Management 

5  Security and Defence 

6  Neighbourhood and the World 

7  European Public Administration 

     of which: Administrative expenditure of the 
institutions 
O  Outside MFF 

S 

Solidarity mechanisms within and outside the Union 
(Special instruments) 

56 235 

56 681 

40 369 

40 369 

3 091 

1 785 

3 410 

1 813 

17 170 

17 670 

10 620 

10 783 

4 421 

4 485 

– 

– 

2 799 

2 219 

75 200 

41 687 

3 520 

1 851 

20 364 

12 075 

5 041 

6 692 

3 531 

68 142 

41 182 

3 446 

1 840 

20 153 

11 664 

4 850 

3 006 

2 602 

  Total 

169 516 

182 227 

481 676 

357 091 

     of which Next Generation EU (NGEU) 

– 

– 

277 772 

162 702 

141 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Budget expenditure: payments by multiannual financial 
framework (MFF) heading 

MFF Heading 

Initial 
adopted 
budget 

Final 
adopted 
budget 

Total 
appropriations 
available 

EUR million 

Payments 
made 

1  Single Market, Innovation and Digital 

2  Cohesion, Resilience and Values 

  2a. Economic, social and territorial cohesion 

  2b. Resilience and values 

21 474 

62 053 

56 351 

5 702 

20 606 

63 140 

57 610 

5 531 

3  Natural Resources and Environment 

56 602 

55 782 

29 379 

25 174 

129 654 

126 570 

75 546 

54 108 

59 271 

73 015 

53 555 

58 276 

     of which: Market related expenditure and direct 
payments 

40 393 

40 356 

41 674 

41 152 

4  Migration and Border Management 

5  Security and Defence 

6  Neighbourhood and the World 

7  European Public Administration 

     of which: Administrative expenditure of the 
institutions 
O  Outside MFF 

S 

Solidarity mechanisms within and outside the Union 
(Special instruments) 

3 078 

1 238 

12 916 

10 620 

3 373 

1 159 

13 156 

10 783 

4 421 

4 485 

– 

– 

2 623 

2 040 

3 642 

1 192 

14 902 

13 149 

5 724 

6 830 

3 351 

3 368 

1 154 

14 521 

11 583 

4 801 

 72 

2 602 

  Total 

170 603 

170 038 

261 370 

243 321 

     of which Next Generation EU (NGEU) 

– 

– 

64 292 

63 456 

Budget expenditure: outstanding commitments by 
multiannual financial (MFF) heading 

MFF Heading 

EUR million 

Outstanding 
commitments 
carried-over 
from 2021 

1 

Liquidation 
of 
outstanding 
commitm. 
carried from 
2021 
2 

New 
outstanding 
commitments 
from 2022 

Total 
outstanding 
commit- 
ments 

3 

4=1+2+3 

1 

2 

3 

4 

5 

6 

7 

O 

S 

Single Market, Innovation and Digital 

48 717 

(19 897) 

21 309 

50 130 

Cohesion, Resilience and Values 

209 033 

(89 435) 

181 482 

301 081 

2a. Economic, social and territorial cohesion 

152 840 

(66 138) 

67 599 

154 302 

2b. Resilience and values 

Natural Resources and Environment 
     of which: Market related expenditure and direct 
payments 
Migration and Border Management 

Security and Defence 

Neighbourhood and the World 

European Public Administration 
     of which: Administrative expenditure of the 
institutions 
Outside MFF 
Solidarity mechanisms within and outside the Union 
(Special instruments) 
Total 

56 193 

(23 297) 

113 883 

146 779 

43 691 

(16 188) 

25 957 

53 459 

 334 

 (124) 

3 980 

2 397 

32 535 

1 076 

 684 

 147 

– 

(1 515) 

 (790) 

(9 906) 

(1 076) 

 (684) 

 (20) 

– 

 147 

1 543 

1 455 

14 333 

1 048 

 357 

4 008 

3 061 

36 962 

1 048 

 654 

 654 

2 944 

3 071 

 0 

 0 

341 575  (138 826) 

250 071 

452 821 

     of which Next Generation EU (NGEU) 

89 907 

(34 847) 

134 072 

189 132 

     of which excluding Next Generation EU (NGEU) 

251 668 

(103 979) 

116 000 

263 689 

142 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

  NOTES TO THE BUDGETARY IMPLEMENTATION 

REPORTS  

3.1.  THE EU BUDGET FRAMEWORK 

The budgetary accounts are kept in accordance with the Financial Regulation (FR). The general budget is 
the instrument which provides for and authorises the Union's revenue and expenditure every year, within 
the  ceilings  and  other  provisions  laid  down  in  the  MFF  in  line  with  the  legislative  acts  concerning 
multiannual programmes adopted under that framework. 

3.2.  MULTIANNUAL FINANCIAL FRAMEWORK 2021-2027 

EUR million 
in current prices 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

Total 

20 919   21 278   21 727   20 984  

 21 272 

21 847   22 077  

150 704  

6 364   67 806   70 137   72 367   74 993   66 536   70 283  

428 486  

1 769   61 345   62 939   64 683   66 479   56 725   58 639  

372 579  

4 595  

6 461  

7 198  

7 684  

8 514  

9 811   11 644  

55 907  

56 841   56 965   57 295   57 449   57 558   57 332   57 557  

400 997  

40 368   40 639   40 693   41 649   41 782   41 913   42 047  

289 091  

1 791  

3 360  

3 814  

3 866  

4 387  

4 315  

4 465  

25 998  

1 696  

1 896  

1 946  

2 004  

2 243  

2 435  

2 705  

14 925  

16 247   16 802   16 329   15 830   15 304   14 754   15 331  

110 597  

10 635   11 058   11 419   11 773   12 124   12 506   12 959  

82 474  

8 216 

8 528 

8 772 

9 006 

9 219 

9 464 

9 786 

62 991  

114 493  179 765  182 667  184 273  187 881  179 725  185 377 

1 214 181 

163 496  170 558  168 575  168 853  172 230  175 674  179 187 

 1 198 573 

1. Single Market, 
Innovation and Digital 
2. Cohesion, Resilience 
and Values 
2a. Economic, social and 
territorial cohesion 

2b. Resilience and Values 
3. Natural Resources and 
Environment 
     of which: Market 
related expenditure and 
direct payments 
4. Migration and Border 
Management 

5. Security and Defence 
6. Neighbourhood and 
the World 
7. European Public 
Administration 
     of which: 
Administrative 
expenditure of the 
institutions 
Commitment 
appropriations 

Total payment 
appropriations 

Council  Regulation  (EU,  Euratom)  2020/2093  laying  down  the  2021-2027  MFF  was  adopted  on  17 
December 202019. The above table shows the MFF ceilings at current prices20, in accordance with the fixed 
annual  deflator  of  2%  set  out  in  Article  4(2)  of  the  MFF  Regulation.  As  stipulated  in  the  Council 
Regulation  (EU,  Euratom)  2020/2093  laying  down  the  2021-2027  MFF,  for  commitment  appropriations 
the  amounts  are  split  per  Heading;  for  payment  appropriations  the  ceilings  only  apply  at  total  level.  
2022 was the second financial year covered by the MFF 2021-2027.  

19 Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework 

for the years 2021 to 2027, OJ L 433I, 22.12.2020, p. 11. 

20 Technical adjustment of the financial framework for 2023 in accordance with Article 4 of Council Regulation (EU, 

Euratom) 2021/365 laying down the multiannual financial framework for the years 2021 to 2027, COM(2022) 266 
final, 7.6.2022. 

143 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
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Annual accounts of the European Union 2022 

On 7 June 2021, the Commission adopted a Communication on the technical adjustment of the  MFF for 
the  year  202221.  The  programme  specific  adjustment  (according  to  MFF  regulation  Art.  5(2))  was 
implemented  with  the  additional  allocations  for  specific  programmes  referred  to  in  Annex  II  of  the  MFF 
Regulation  and  the  resulting  upwards  adjustments  of  the  ceilings  for  commitment  and  payment 
appropriations. The revenue from fines imposed under Council Regulations (EC) No 1/200322 and (EC) No 
139/200423 entered in the budget of 2020 were below the minimum threshold of EUR 1.5 billion in 2018 
prices set in the article. Therefore, the minimum threshold provided the total volume of the adjustment 
for  2022  in  2018  prices.  The  adjustment  in  current  prices  amounted  to  EUR 1.624  billion.  The  main 
impacts in 2022 were under Heading 1 (EUR 0.59 billion), Heading 2(b) (EUR 0.89 billion) and Heading 4 
(EUR 0.15 billion). 

The reprogramming of unused 2021 commitment appropriations for programmes in shared management 
in accordance with Article 7 of the MFF Regulation was implemented by a specific adjustment of the MFF 
provided in the Commission Communication of 28 January 202224 with an adjustment of the MFF ceilings 
and  a  related  amending  budget  for  2022.  The  allocations  not  used  in  2021  and  not  carried  over  were 
transfered  in  equal  proportions  to  each  of  the  years  2022  to  2025.  The  total  transfer  from  2021 
amounted EUR 49 billion coming from main impacts in 2022 were under Heading 2(a) (EUR 46.4 billion), 
Heading  3  (EUR 1.8 billion),  Heading  4  (EUR  0.7  billion)  and  Heading  5  (EUR  0.1  billion).  The  main 
impacts in 2022 were under Heading 2(a) (EUR 11.6 billion), Heading 3 (EUR 0.4 billion), Heading 4 (EUR 
0.2 billion) and Heading 5 (EUR 0.02 billion). 

The  overall  ceiling  for  commitment  appropriations  for  2022  was  EUR 179 765 million,  whilst  the 
corresponding ceiling for payment appropriations was EUR 170 558 million. 

Pursuant to Article 312(3) TFEU, the MFF determines the amounts of the annual ceilings for commitment 
appropriations  by  category  of  expenditure  (‘headings’)  and  of  the  annual  ceilings  for  payment 
appropriations.  MFF headings  correspond to the  Union’s major  sectors of activity.  An  explanation  of the 
various headings of the 2021-2027 MFF is given below. 

The  MFF  2021-2027  amounts  to  EUR  1  211  billion  (EUR  1  074  billion  in  2018  prices),  including  the 
European Development Fund (EDF). In addition, NextGenerationEU provides an additional amount of EUR 
806.9 billion (EUR 750 billion in 2018 prices) up to 2023 in commitments and 2026 in payments.  

For  the  annual  budget  procedure,  the  budget  nomenclature  is  further  structured  by  policy  ‘clusters’, 
providing further clarity on how individual spending programmes contribute to the Union’s policy goals. 

Heading 1 – Single Market, Innovation and Digital 

This  heading  includes  key  EU  programmes  supporting  the  areas  of  research  and  innovation,  digital 
transformation,  strategic  infrastructure,  strengthening  the  single  market  and  strategic  space  projects. 
Programmes under this heading include Horizon Europe, the InvestEU Fund, Connecting Europe Facility, 
the Single market programme and the European space programme. 

Programmes  receiving  contributions  from  NGEU  (external  assigned  revenue)  in  this  heading:  Horizon 
Europe and InvestEU Fund. 

Heading 2 – Sustainable growth: natural resources 

This heading is divided in two sub-headings: Economic, social and territorial cohesion (2a), and Resilience 
and values (2b). 

Spending under this heading aims at strengthening the resilience and cohesion between the EU Member 
States. The funding  helps reduce  disparities in  and between EU  regions, and within and across Member 

21 Technical  adjustment  of  the  financial  framework  for  2022  in  accordance  with  Article  4  of  Council  Regulation  (EU, 
Euratom)  2021/365  laying down  the  multiannual  financial  framework for  the years 2021  to 2027, COM(2021) 365 
final, 7.6.2021. 

22  Council  Regulation  (EC)  No  1/2003  of  16  December  2002  on  the  implementation  of  the  rules  on  competition  laid 

down in Articles 81 and 82 of the Treaty, OJ L 1, 4.1.2003, p. 1.  

23  Council  Regulation  (EC)  No  139/2004  of  20  January  2004  on  the  control  of  concentrations  between  undertakings 

(the EC Merger Regulation), OJ L 24, 29.1.2004, p. 1. 

24 Adjustment of the multiannual financial framework in accordance with Article 7 of Council Regulation (EU, Euratom) 
2020/2093  lying  down  the  multiannual  financial  framework  for  the  years  2021  to  2027,  COM(2022)80  final, 
28.2.2022. 

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States,  and  promotes  sustainable  territorial  development  (European  Regional  Development  Fund, 
Cohesion  Fund,  European  Social  Fund  Plus).  It  also  supports  the  Union’s  solidarity  and  cooperation  in 
preparedness  and  response  to  disasters  (Union  Civil  Protection  Mechanism  and  rescEU).  In  addition, 
programmes under this heading seek to make the EU more resilient to present and future challenges by 
investing in the green and  digital transition, young  people (Erasmus), health  (EU4Health) and action to 
protect EU values (Justice, Rights and Values) and promote cultural diversity (Creative Europe). 

This heading includes the RRF, powered by the vast majority of the funding provided by  NGEU over the 
period 2021-2023. Other programmes receiving contributions from NGEU (external assigned revenue) in 
this heading: REACT-EU, Union Civil Protection Mechanism (rescEU). For a more detailed overview of the 
RRF activities, consult sections on the NGEU 2.2 and 2.3 of the Financial Highlights of the Year. 

Heading 3 – Natural Resources and Environment  

Expenditure  under  this  heading  invests  in  sustainable  agriculture  (common  agricultural  policy)  and 
fisheries and maritime policy (European Maritime, Fisheries and Aquaculture Fund), as well programmes 
dedicated to environmental protection and climate action (LIFE programme, Just Transition Fund). 

Programmes  receiving  contributions  from  NGEU  (external  assigned  revenue)  in  this  heading:  rural 
development, Just Transition Fund. 

Heading 4 – Migration and Border Management 

The programmes (Asylum, Migration and Integration Fund, Integrated Border Management Fund) and the 
decentralised  agencies  (such  as  the  European  Border  and  Coast  Guard  Agency  (Frontex)  and  the 
European Union Agency for Asylum) financed under this heading seek to tackle the challenges linked to 
migration  and  the  management  of  the  EU’s  external  borders  and  to  the  safeguarding  of  the  asylum 
system within the EU. 

Heading 5 – Security and Defence 

This  heading  reflects  the  increased  need  for  cooperation  at  Union  level  to  address  security  threats  and 
increase its strategic autonomy. It includes programmes whose role is to improve the security and safety 
of  Europe’s  citizens  (Internal  Security  Fund),  to  strengthen  Europe’s  defence  capacities  (European 
Defence Fund), and to provide the tools needed to respond to internal and external security challenges. 

Heading 6 – Neighbourhood and the World 

Programmes  under  this  heading  reinforce  the  EU  socio-economic  impact  in  its  neighbourhood,  in 
developing countries and the rest of the world. The new NDICI- Global Europe instrument merges several 
former EU external financing instruments, including cooperation with African, Caribbean and Pacific (ACP) 
countries previously financed by the European Development Fund. The heading also includes assistance 
for countries preparing for accession to the EU (Pre-accession assistance) and the Union’s Humanitarian 
Aid programme. 

Heading 7 - European Public Administration 

This heading covers administrative expenditure for all institutions, pensions and the European Schools.  

S - Special instruments 

Flexibility  mechanisms  in  the  EU  budget  enable  the  EU  to  mobilise  the  necessary  funds  to  react  to 
unforeseen  events  such  as  crisis,  natural  disasters  and  emergency  situations.  Their  scope,  financial 
allocation  and  operating  modalities  are  provided  for  in  the  MFF  Regulation  and  the  Inter  institutional 
Agreement. They ensure that budgetary resources can respond to evolving priorities, so that every euro 
is used where it is most needed. 

In  the  annual  budgetary  nomenclature  and  implementation,  they  are  identified  as  special  instruments 
(‘S’),  as  they can be mobilised over and above the MFF  expenditure ceilings, both for commitment and 
payment appropriations.  

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3.3.  MFF DETAILED HEADINGS (PROGRAMMES) 

The  headings  of  the  MFF  are  further  broken  down  into  detailed  headings,  corresponding  to  the  main 
spending  programmes  (e.g.  Horizon  2020,  Erasmus+  etc.).  Underlying  legal  bases  for  budget 
implementation are adopted at this programme level. Programmes are the commonly used structure for 
reporting  on  implementation  and  results.  Tables  by  programme  are  available  in  the  budgetary 
implementation reports (see tables 6.7 - 6.12 below). 

3.4.  NextGenerationEU 

With a budget of EUR 421.1 billion for the non-repayable support (grants), NGEU has a major impact on 
the  total  EU  annual  budgets  2021  through  to  2026  and  on  their  implementation.  In  2021,  this  amount 
has  been  fully  inscribed  as  assigned  revenue  appropriations.  All  commitments  for  the  non-repayable 
support  will  be  entered  by  the  31  December  2023 and  will  be  honoured  by  payments  by  31  December 
2026, in accordance with the Articles 3(4) and 3(9) of the EURI Regulation25. 

For  a  comprehensive  overview  of  the  NGEU  activities,  consult  sections  2.2  and  2.3  of  the  Financial 
Highlights of the Year. 

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

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

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3.5.  ANNUAL BUDGET 

The budget adoption procedure is laid down in Article 314 of the Treaty on the Functioning of the EU. The 
following diagram presents the deadlines as well as the steps of the budget adoption. 

1)  In practice, the three institutions endeavour to present their respective documents earlier in the 

year in order to smooth the process. 

2)  The Conciliation Committee is composed of the members of the Council or their representatives 
and an equal number of members representing the European Parliament. The Commission takes 
part  in  the  Conciliation  Committee’s  proceedings  and  takes  all  the  necessary  initiatives  to 
reconcile the positions of the European Parliament and the Council. 

3)  The  European  Parliament  approves  the  joint  text  and  then,  within  14  days  of  the  Council’s 
rejection, decides (by a majority of its component members and 3/5 of the votes cast) to confirm 
all or some of its amendments. 

The budget structure for  the  Commission consists of  administrative and operational appropriations. The 
other  Institutions  have  only  administrative  appropriations.  Furthermore,  the  budget  distinguishes 
between  two  types  of  appropriations:  non-differentiated  and  differentiated.  Non-differentiated 
appropriations  are  used  to  finance  operations  of  an  annual  nature  (which  comply  with  the  principle  of 
annuality). Differentiated appropriations are used in order to reconcile the principle of annuality with the 

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need  to  manage  multiannual  operations.  Differentiated  appropriations  are  split  into  commitment  and 
payment appropriations: 

 

 

commitment  appropriations:  cover  the  total  cost  of  the  legal  obligations,  entered  into  for  the 
current  financial  year,  for  operations  extending  over  a  number  of  years.  However,  budgetary 
commitments for actions extending over more than one financial year may be broken down over 
several years, into annual instalments, where the basic act so provides. 

payment appropriations: cover expenditure arising from commitments entered into in the current 
financial year and/or earlier financial years. 

In the accounts, the types of funding are grouped into two main items: 

 

 

Final adopted budget appropriations; and 

Additional appropriations containing: 

–  Carry-overs  from  previous  year  (the  financial  regulation  allows,  for  a  limited  number  of 

cases, to carry unspent amounts from the previous year into the current year); and 

–  Assigned revenue arising from reimbursements, contributions from third parties/countries to 
EU  programmes  and  work  performed  for  third  parties;  these  are  assigned  directly  to  the 
corresponding expenditure budget lines and constitute the third pillar of funding. 

All funding types together form the available appropriations. 

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3.6.  REVENUE 

3.6.1.  Own resources revenue 

The vast majority of revenue comes from own resources, which consist of the following categories:  

(1) 

(2) 

(3) 

(4) 

Traditional  own  resources  (TOR):  accounted  for  around  16%  of  own  resources  revenue  in 
2022. 

Value added tax (VAT) based resource: accounted for around 13% of own resources revenue 
in 2022. 

Resource based on plastic packaging waste that is not recycled: accounted for around 4% of 
own resources revenue in 2022. 

Gross  national  income  (GNI)  based  resource:  accounted  for  around  67%  of  own  resources 
revenue in 2022. 

Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the 
EU (Own Resources Decision 2020) specifies the categories of own resources and lays down the methods 
for their calculation. This decision entered into force on 1 June 2021 and was applied retroactively from 
1 January 2021.  

The  Own  Resources  Decision  2020  stipulates  that  the  total  amount  of  own  resources  allocated  to  the 
Union to cover annual appropriations for payments shall not exceed 1.40% of the sum of all the Member 
States’  GNIs.  In  addition,  the  decision  empowers  the  Commission  on  an  exceptional  basis  to  borrow 
temporarily up to EUR 750 billion in 2018 prices on the capital markets on behalf of the Union to address 
the  consequences  of  the  COVID-19  pandemic  through  the  recovery  instrument  NextGenerationEU.  The 
own  resources  ceiling  for  appropriations  for  payments  will  be  increased  temporarily  by  0.6  percentage 
points to cover all liabilities resulting from this borrowing. 

As  from  2021,  ‘other  revenue’  of  the  EU  budget  includes  the  financial  contributions  from  the  United 
Kingdom resulting from the financial settlement under the UK Withdrawal agreement. 

3.6.2. 

Traditional own resources (TOR) 

TOR  consist  of  customs  duties  levied  on  imports  from  third  countries,  which  are  collected  by  Member 
States  on  behalf  of  the  EU.  However,  Member  States  retain  25%  to  cover  their  collection  costs.  All 
established  TOR  amounts  must  be  entered  in  one  of  the  following  accounts  kept  by  the  competent 
authorities: 

 

 

In  the  ordinary  accounts  provided  for  in  Article  6(3)  of  Council  Regulation  (EU,  Euratom)  No 
609/2014: all amounts recovered or guaranteed. 

In the separate accounts provided for in the same Article: all amounts not yet recovered and/or 
not guaranteed; amounts guaranteed but challenged may also be entered in this account. 

Member States must book TOR to the Commission’s account via their treasury or national central bank no 
later than the first working day after the 19th day of the second month following the month in which the 
entitlement was established (or recovered in the case of the separate account). 

3.6.3.  Value added tax (VAT) 

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

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Annual accounts of the European Union 2022 

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

3.6.5.  Gross national income (GNI) 

The resource based on gross national income (GNI) is used to finance that part of the budget that is not 
covered  by  other  revenue  sources.  A  uniform  call  rate  is  levied  on  each  Member  State’s  GNI,  which  is 
established in accordance with EU rules. 

3.6.6.  Gross reduction 

For  the  period  2021-2027,  the  following  Member  States  benefit  from  a  gross  reduction  in  their  annual 
GNI-based contributions; EUR 565 million for Austria, EUR 377 million for Denmark, EUR 3 671 million for 
Germany,  EUR  1  921  million  for  the  Netherlands  and  EUR  1  069  million  for  Sweden.  These  gross 
reductions are measured in 2020 prices and financed by all Member States. 

3.6.7.  Adjustments to own resources of previous financial years 

VAT and GNI-based resources are determined on the basis of forecasts of the relevant bases made when 
the  draft  budget  is  prepared.  These  forecasts  are  subsequently  revised  and  updated  during  the  budget 
year concerned, by means of an amending budget. Differences between the amounts due by the Member 
States  with  reference  to  the  actual  bases,  and  the  amounts  actually  paid  on  the  basis  of  the  (revised) 
forecasts, either positive or negative, are called by the Commission from the Member States for the first 
working  day  of  March  of  the  third  year  following  the  budget  year  concerned.  Corrections  may  still  be 
made to the actual VAT and GNI bases during the subsequent four years, unless a reservation is issued. 
These  reservations  represent  potential  claims  on  the  Member  States  for  uncertain  amounts,  as  their 
financial  impact  cannot  be  accurately  estimated.  When  the  exact  amount  can  be  determined,  the 
corresponding  VAT  and  GNI-based  resources  are  called  either  in  connection  with  the  VAT  and  GNI 
balances  exercise  or  by  individual  calls  for  funds.The  forecast  of  the  plastics-based  own  resource  is 
adjusted  in  a  similar  way.  However,  the  differences  between  the  amounts  due  by  the  Member  States 
according to their annual statements with the outturn data, and the amounts actually paid on the basis of 
the (revised) forecasts, either positive or negative, are called by the Commission from the Member States 
for the first working day of June of the third year following the budget year concerned. Corrections may 
still be made to the actual bases during the subsequent five years, unless a reservation is issued. 

3.7. 

 CALCULATION OF THE BUDGET RESULT 

The budget result of the EU is returned to the Member States during the following year through deduction 
of their amounts due for that year. 

The amounts of own resources entered in the accounts are those credited during the course of the year 
to the accounts opened in the Commission's name by the governments of the Member States. Revenue 
comprises  also,  in  the  case  of  a  surplus,  the  budget  result  for  the  previous  financial  year.  The  other 
revenue entered in the accounts is the amount actually received during the course of the year. 

For  the  purposes  of  calculating  the  budget  result  for  the  year,  expenditure  comprises  payments  made 
against the year's appropriations plus any of the appropriations for that year that are carried over to the 
following year. Payments made against the year's appropriations means payments that are made by the 
Accounting Officer by 31 December of the financial year. For the EAGF, payments are those effected by 
the Member States between 16 October N-1 and 15 October N, provided that the Accounting Officer was 
notified of the commitment and authorisation by 31 January N+1. EAGF expenditure may be subject to a 
conformity decision following controls in the Member States. 

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The budget result comprises two elements: the result of the EU and the result of the participation of the 
EFTA  countries  belonging  to  the  European  Economic  Area  (EEA).  In  accordance  with  Article  1(1)  of 
Regulation No 608/2014 laying down implementing measures for the system of own resources, this result 
represents the difference between: 

– 
– 

total revenue received for the financial year; and 
total  payments  made  against  current  year's  appropriations  plus  the  total  amount  of  that  year's 
appropriations carried over to the following year. 

The following are added to or deducted from the resulting figure: 

– 

– 
– 

the net balance of cancellations of payment appropriations carried over from previous years and 
any  payments  which,  because  of  fluctuations  in  the  euro  rate,  exceed  non-differentiated 
appropriations carried over from the previous year; 
the evolution of assigned revenue; and 
the net exchange rate gains or losses recorded during the year. 

Appropriations carried over from  the previous financial year in respect of contributions by and  work  for 
third  parties,  which  by  definition  never  lapse,  are  included  as  additional  appropriations  for  the  financial 
year.  This  explains  the  difference  between  carryovers  from  the  previous  year  in  the  year  N  budget 
implementation  reports  and  those  carried  over  to  the  following  year  in  the  year  N-1  budget 
implementation  reports.  Commitment  appropriations  made  available  again  following  the  repayment  of 
payments on account are disregarded when calculating the budget result. 

Payment  appropriations  carried  over  include  automatic  carry-overs  and  carry-overs  by  decision.  The 
cancellation  of  unused  payment  appropriations  carried  over  from  the  previous  year  comprises  the 
cancellations of appropriations carried over automatically and by decision. 

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3.8.  RECONCILIATION OF ECONOMIC RESULT WITH 

BUDGET RESULT  

ECONOMIC RESULT OF THE YEAR 

Revenue 
Entitlements established in current year but not yet collected 
Entitlements established in previous years and collected in current year 
Accrued revenue (net) 

Expenses 
Accrued expenses (net) 
Expenses prior year paid in current year 
Net-effect pre-financing 
Payment appropriations carried over to next year 
Payments made from carry-overs & cancellation of unused payment 
appropriations 
Movement in provisions 
Other 

Economic result Agencies and ECSC i.L. 

2022 
(91 949) 

EUR million 
2021 
(42 100) 

(5 978) 
74 088 
2 072 
70 182 

45 648 
(2 053) 
(21 659) 
(2 660) 
3 331 
3 650 
(2 139) 
24 118 
 168 

(7 068) 
64 356 
(5 434) 
51 854 

53 108 
(1 046) 
(47 608) 
(4 449) 
(4 047) 
1 032 
(3 577) 
(6 587) 
 61 

BUDGET RESULT OF THE YEAR 

2 519 

3 230 

In accordance with the Financial Regulation, the economic result of the year is calculated on the basis of 
accrual accounting principles and the EU Accounting Rules, while the budget result is based on modified 
cash  accounting  rules.  As  the  economic  result  and  the  budget  result  cover  the  same  underlying 
transactions – the exception being the other (non-budgetary) sources of revenue and expenditure of the 
agencies and the ECSC in Liquidation which are included in the economic result only  – the reconciliation 
of the economic result of the year with the budget result of the year serves as a useful consistency check.  

Reconciling items – Revenue 

The actual budgetary revenue for a financial year corresponds to the revenue collected from entitlements 
established  in  the  course  of  the  year  and  amounts  collected  from  entitlements  established  in  previous 
years. Therefore the entitlements established in the current year but not yet collected are to be deducted 
from the economic result for reconciliation purposes as they do not form part of budgetary revenue. On 
the contrary the entitlements established in previous years and collected in current year must be added 
to the economic result for reconciliation purposes.  

The accrued revenue mainly consists of amounts related to financial corrections, own resources, interests 
and dividends. Only the net effect, i.e. accrued revenue for current year minus reversal accrued revenue 
from previous year, is taken into consideration.  

Reconciling items – Expenditure  

The  accrued  expenses  mainly  consists  of  accruals  made  for  year-end  cut-off  purposes,  i.e.  eligible 
expenses  incurred  by  beneficiaries  of  EU  funds  but  not  yet  reported  to  the  Commission.  Only  the  net-
effect, i.e. accrued expenses for current year minus the reversal of  accrued expenses from the previous 
year,  is  taken  into  consideration.  Payments  made  in  the  current  year  relating  to  invoices  registered  in 
prior  years  are  part  of  current  year's  budgetary  expenditure  and  therefore  must  be  added  to  the 
economic result for reconciliation purposes. 

The  net  effect  of  pre-financing  is  the  combination  of  (1)  the  new  pre-financing  amounts  paid  in  the 
current  year  and  recognised  as  budgetary  expenditure  of  the  year  and  (2)  the  clearing  of  the  pre-
financing  through  eligible  costs  accepted  during  the  current  year.  The  latter  represent  an  expense  in 
accrual  terms  but  not  in  the  budgetary  accounts  since  the  payment  of  the  initial  pre-financing  had 
already been considered as a budgetary expenditure at the time of its payment.  

152 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

As well as the payments made against the year's appropriations, the appropriations for that year that are 
carried forward  to the next  year also  need to be  taken into account in calculating the budget result for 
the year (in accordance  with Article 1(1) of Regulation  (EU,  Euratom)  No  608/2014).  The  same  applies 
for  the  budgetary  payments  made  in  the  current  year  from  carry-overs  from  previous  years,  and  the 
cancellation of unused payment appropriations. 

The  movement  in  provisions  relates  to  year-end  estimates  made  in  the  financial  statements  (employee 
benefits mainly) that do not impact the budgetary accounts. Other reconciling amounts comprise different 
elements such as asset amortisation/depreciation, asset acquisitions, capital lease payments and financial 
participations for which the budgetary and accrual accounting treatments differ. 

Reconciling item – Economic result Agencies and ECSC in Liquidation 

The budget result of the year is a non-consolidated figure and does not include the other (non-budgetary) 
sources  of  revenue  and  expenditure  of  the  consolidated  agencies  and  the  ECSC  i.L.  (see  note  6).  To 
reconcile the economic result of the year – a consolidated figure which includes these amounts – with the 
budgetary result of the year, the whole consolidated economic result of the year of the agencies and the 
ECSC i.L. is presented as a reconciling item. 

153 

 
 
Annual accounts of the European Union 2022 

IMPLEMENTATION OF THE 2022 EU BUDGET  

Please  see  section  3,  “Summary  of  budget  implementation"  in  the  Financial  Highlights  of  the  Year  for 
explanatory  notes  on  the  2022  budget  implementation  for  revenue  and  expenditure,  outstanding 
commitments and budget result. 

154 

 
 
1  Own resources 

  11 - Sugar levies 

  12 - Customs duties 

  13 - VAT 

  14 - GNI 

16 - Reduction of GNI-based contribution 
granted to certain Member States 

IMPLEMENTATION OF EU BUDGET REVENUE  

Annual accounts of the European Union 2022 

5.1.  SUMMARY OF THE IMPLEMENTATION OF EU BUDGET REVENUE  

Income appropriations 

Entitlements established 

Revenue 

Title 

Initial 
adopted 
budget 

1 

Final 
adopted 
budget 

Current 
year 

Carried 
over 

Total 

On entitle- 
ments of 
current year 

On entitle- 
ments 
carried over 

Total 

2 

3 

4 

5=3+4 

6 

7 

8=6+7 

9=8/2 

10=5-8 

157 701 

153 928 

155 083 

2 237 

157 320 

155 073 

 686 

155 758 

 101 % 

1 562 

0 

0 

 (1) 

 (0) 

 (1) 

 (1) 

– 

 (1) 

- 

 (0) 

17 913 

23 765 

25 181 

2 237 

27 419 

25 171 

 686 

25 857 

 109 % 

1 562 

EUR million 

Receipts 
as % of 
budget 

Out- 
standing 

  17 - Plastic packaging waste 

5 997 

6 361 

6 337 

2  Surpluses, balances and adjustments 

0 

2 980 

3 227 

3  Administrative revenue 

1 791 

1 791 

2 581 

19 071 

19 714 

19 666 

114 719 

104 088 

103 880 

– 

– 

 19 

– 

– 

– 

– 

 7 

 75 

19 666 

19 666 

103 880 

103 880 

 19 

6 337 

3 233 

2 656 

 19 

6 337 

3 227 

2 554 

– 

– 

– 

– 

– 

19 666 

 100 % 

103 880 

 100 % 

 19 

- 

6 337 

 100 % 

3 227 

 108 % 

 53 

2 607 

 146 % 

– 

– 

– 

– 

 7 

 49 

4  Financial revenue, default interest and fines 

 115 

 454 

 (226) 

16 861 

16 635 

 (949) 

1 544 

 596 

 131 % 

16 039 

5 

6 

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

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 

170 603 

170 038  243 269 

25 467  268 736 

237 059 

8 205  245 265 

144 % 

23 471 

155 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
IMPLEMENTATION OF EU BUDGET EXPENDITURE  

Annual accounts of the European Union 2022 

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

Commitment appropriations 

Payment appropriations 

MFF Heading 

Budget appropriations 

Additional 
appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Carry-
overs 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets 
& 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

7 

8 

9=7+8 

10 

11 

Total 
approp. 
available 

6=3+ 
4+5 

EUR million 

Total 
approp. 
available 

12=9+ 
10+11 

1 

Single Market, Innovation and 
Digital 

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 

2a. Economic, social and territorial 
cohesion 

49 709 

11 605 

61 314 

– 

14 754 

76 068 

56 351 

1 259 

57 610 

 3 

17 934 

75 546 

  2b. Resilience and values 

6 330 

 161 

6 491 

 0 

242 812 

249 303 

5 702 

 (171) 

5 531 

 25 

48 553 

54 108 

3  Natural Resources and Environment 

56 235 

 446 

56 681 

 686 

17 832 

75 200 

56 602 

 (820) 

55 782 

 693 

2 797 

59 271 

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 

 632 

41 674 

3 091 

1 785 

 319 

3 410 

 28 

1 813 

 2 

– 

 108 

3 520 

3 078 

 294 

3 373 

 38 

1 851 

1 238 

 (79) 

1 159 

 27 

 5 

 242 

3 642 

 28 

1 192 

6  Neighbourhood and the World 

17 170 

 500 

17 670  2 237 

 456 

20 364 

12 916 

 240 

13 156 

1 048 

 698 

14 902 

7  European Public Administration 

10 620 

 163 

10 783 

 22 

1 269 

12 075 

10 620 

 163 

10 783 

1 085 

1 281 

13 149 

     of which: Administrative 
expenditure of the institutions 

4 421 

 64 

4 485 

 22 

 534 

5 041 

4 421 

 64 

4 485 

 695 

 544 

5 724 

O  Outside MFF 

– 

– 

– 

– 

6 692 

6 692 

– 

– 

– 

– 

6 830 

6 830 

S 

Solidarity mechanisms within and 
outside the Union (Special 
instruments) 

2 799 

 (580) 

2 219  1 303 

 10 

3 531 

2 623 

 (583) 

2 040 

1 303 

 8 

3 351 

  Total 

169 516 

12 711  182 227  4 481  294 968 

481 676  170 603 

 (565)  170 038 

4 335 

86 996 

261 370 

156 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.2.  MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Union 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 final 
adopted 
budget 

from 
assigned 
revenue 

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 
2a. 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 

  2b. 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 

3 

4 

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

5  Security and Defence 

1 851 

1 809 

3 520 

3 395 

 2 

– 

 50 

 30 

3 446 

 98 % 

1 840 

 99 % 

6 

7 

Neighbourhood and the 
World 
European Public 
Administration 
     of which: Administrative 
expenditure of the 
institutions 

20 364 

17 633  2 237 

 283 

20 153 

 99 % 

12 075 

10 733 

 21 

 911 

11 664 

 97 % 

5 041 

4 445 

 21 

 384 

4 850 

 96 % 

O  Outside MFF 

6 692 

– 

– 

3 006 

3 006 

 45 % 

 7 

 0 

 0 

 0 

 58 

 7 

 74 

 11 

 173 

 211 

 358 

 359 

 50 

 149 

 150 

 40 

3 686 

3 686 

– 

 16 

 3 

 38 

 1 

 1 

– 

 10 

– 

– 

 0 

 1 

 1 

– 

– 

 0 

 0 

 0 

 0 

 1 

 0 

– 

 7 

Total 

13=10+ 
11+12 

 3 

1 084 

1 078 

 6 

 295 

 18 

 0 

 1 

 0 

 52 

 41 

– 

 180 

S 

Solidarity mechanisms 
within and outside the 
Union (Special instruments) 

3 531 

1 299  1 303 

– 

2 602 

 74 % 

 746 

 3 

 749 

 173 

  Total 

481 676  179 425  4 469  173 196  357 091  74 % 

1 451  121 520  122 971 

1 351 

 12 

 252 

1 614 

157 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 

2 

3 

4 

5=2+ 
3+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

6.3.  MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS 

Annual accounts of the European Union 2022 

MFF Heading 

Total 
appropr. 
available 

Payments 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 

1 

Single Market, Innovation and 
Digital 

29 379 

20 471 

 132 

4 570 

25 174 

 86 % 

 112 

4 052 

4 164 

2  Cohesion, Resilience and Values 

129 654 

63 055 

 24 

63 491 

126 570 

 98 % 

 76 

2 995 

3 071 

2a. Economic, social and 
territorial cohesion 

75 546 

57 600 

 1 

15 414 

73 015 

 97 % 

 3 

2 520 

2 523 

  2b. Resilience and values 

54 108 

5 455 

 23 

48 077 

53 555 

 99 % 

 73 

 475 

 548 

59 271 

55 198 

 682 

2 396 

58 276 

 98 % 

 493 

 401 

 894 

41 674 

39 846 

 677 

 629 

41 152 

 99 % 

 486 

 2 

 488 

3 

4 

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

5  Security and Defence 

1 192 

1 130 

 5 

3 642 

3 292 

 26 

 49 

 19 

3 368 

 92 % 

1 154 

 97 % 

 3 

 6 

 193 

 196 

 9 

 15 

6  Neighbourhood and the World 

14 902 

13 049  1 032 

 440 

14 521 

 97 % 

 93 

 258 

 352 

7  European Public Administration 

13 149 

9 832 

 959 

 792 

11 583 

 88 % 

 923 

 485 

1 407 

     of which: Administrative 
expenditure of the institutions 

5 724 

3 870 

 598 

 333 

4 801 

 84 % 

 596 

 208 

 805 

O  Outside MFF 

6 830 

– 

– 

 72 

 72 

 1 % 

– 

6 757 

6 757 

S 

Solidarity mechanisms within 
and outside the Union (Special 
instruments) 

3 351 

1 294  1 303 

 5 

2 602 

 78 % 

 746 

 3 

 749 

EUR million 

Appropriations lapsing 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

13=10+ 
11+12 

 41 

 14 

 8 

 5 

 102 

 34 

 78 

 23 

 30 

 158 

 119 

– 

 0 

 23 

 10 

 7 

 3 

 91 

 24 

 78 

 23 

 13 

 50 

 40 

– 

 0 

 15 

 3 

 2 

 2 

 11 

 10 

 0 

 0 

 16 

 105 

 76 

– 

– 

 3 

 1 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 4 

 3 

– 

– 

  Total 

261 370  167 321  4 163  71 837  243 321  93 % 

2 452  15 152  17 604 

 287 

 151 

 7 

 445 

158 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.4.  MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) 

Annual accounts of the European Union 2022 

Commitments outstanding at the end of previous year 

Commitments of the current year 

MFF Heading 

Commitm. 
carried 
forward from 
previous year 

Decommitm./ 
Revaluations/ 
Cancellations 

Payments 

Commitm. 
outstanding 
at year-end 

Commitm. 
made during 
the year 

Payments 

Cancellation 
of commitm. 
which 
cannot be 
carried over 

Commitm. 
outstanding 
at year-end 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
the year 

1  Single Market, Innovation and Digital 

2  Cohesion, Resilience and Values 

2a. Economic, social and territorial 
cohesion 

  2b. Resilience and values 

3  Natural Resources and Environment 

     of which: Market-related 
expenditure and direct payments 

4  Migration and Border Management 

5  Security and Defence 

6  Neighbourhood and the World 

7  European Public Administration 

     of which: Administrative expenditure 
of the institutions 

O  Outside MFF 

S 

Solidarity mechanisms within and 
outside the Union (Special instruments) 

1 

48 717 

209 033 

152 840 

56 193 

43 691 

 334 

3 980 

2 397 

32 535 

1 076 

 684 

 147 

– 

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) 

 (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) 

 (21) 

(1 464) 

 (769) 

2 465 

1 607 

3 446 

(1 903) 

1 840 

 (385) 

(1 205) 

(8 701) 

22 629 

20 153 

(5 820) 

 (116) 

 (960) 

 (86) 

 (598) 

 0 

– 

11 664 

(10 623) 

4 850 

(4 203) 

 (9) 

– 

 (11) 

 127 

3 006 

 (62) 

– 

– 

2 602 

(2 602) 

 (1) 

 (1) 

 (0) 

 (0) 

– 

– 

 (0) 

 (0) 

 7 

 7 

– 

– 

181 482 

301 081 

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 

1 048 

 654 

2 944 

 0 

1 048 

 654 

3 071 

 0 

  Total 

341 575 

(2 520)  (136 306) 

202 749 

357 091 

(107 015) 

 (4) 

250 071 

452 821 

159 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.5.  MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN  

Annual accounts of the European Union 2022 

<2016 

2016 

2017 

2018 

2019 

2020 

2021 

2022 

Total 

EUR million 

1  Single Market, Innovation and Digital 

2  Cohesion, Resilience and Values 

 634 

2 129 

 612 

 528 

1 364 

2 072 

5 400 

8 895 

9 823 

21 329 

50 130 

6 063 

8 997 

15 494 

25 268 

61 090 

181 512 

301 081 

3  Natural Resources and Environment 

1 484 

1 100 

1 017 

1 275 

2 349 

6 638 

13 640 

25 957 

53 459 

4  Migration and Border Management 

5  Security and Defence 

6  Neighbourhood and the World 

7  European Public Administration 

O  Outside MFF 

S 

Solidarity mechanisms within and outside the Union (Special 
instruments) 

 17 

 28 

 26 

 9 

 105 

 111 

 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 

1 048 

 127 

2 944 

1 048 

3 071 

– 

 0 

 0 

  Total 

5 445 

3 090 

10 025 

15 140 

27 949 

46 599 

94 453  250 120 

452 821 

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

160 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.6.  MFF: OUTSTANDING COMMITMENTS BY APPROPRIATIONS TYPE 

Annual accounts of the European Union 2022 

From budget appropriations 

From assigned revenue appropriations 

Commitm. 
carried 
forward 
from 2021 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

Amount 
remaining 
to be 
settled 
5=1+2+3-
4 

Commitm. 
carried 
forward 
from 2021 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

6 

7 

8 

9 

Amount 
remaining 
to be 
settled 
10=6+7+8
-9 

EUR million 

Total 
commitm. 
outstanding 
at the end 
of 2022 

11=5+10 

1  Single Market, Innovation and Digital 

41 340 

 (643) 

22 073 

20 229 

42 541 

7 377 

 (100) 

5 257 

4 945 

7 588 

50 130 

2  Cohesion, Resilience and Values 

95 569 

 (263) 

66 644 

63 014 

98 937 

113 465 

 (27) 

152 263 

63 556 

202 144 

301 081 

2a. Economic, social and territorial 
cohesion 

91 481 

 (143) 

60 159 

57 554 

93 943 

61 360 

 (13) 

14 473 

15 461 

60 358 

154 302 

  2b. Resilience and values 

4 088 

 (120) 

6 485 

5 460 

4 993 

52 105 

 (14) 

137 790 

48 095 

141 786 

146 779 

3  Natural Resources and Environment 

40 854 

 (93) 

56 746 

56 225 

41 281 

2 837 

 (5) 

11 396 

2 051 

12 178 

53 459 

   of which: Market related expenditure 
and direct payments 

 334 

 (6) 

40 552 

40 523 

 357 

– 

– 

 629 

 629 

4  Migration and Border Management 

3 760 

 (49) 

3 397 

3 297 

3 811 

5  Security and Defence 

2 364 

 (21) 

1 809 

1 128 

3 025 

6  Neighbourhood and the World 

31 666 

(1 181) 

19 870 

14 079 

36 275 

7  European Public Administration 

 968 

 (48) 

10 754 

10 741 

     of which: Administrative 
expenditure of the institutions 

O  Outside MFF 

S 

Solidarity mechanisms within and 
outside the Union (Special instruments) 

 630 

 (22) 

4 465 

4 468 

– 

– 

– 

– 

2 602 

2 602 

 932 

 606 

– 

 0 

 219 

 33 

 869 

 107 

 (2) 

 (0) 

 (24) 

 (60) 

 50 

 30 

 283 

 911 

 71 

 27 

 442 

 842 

 53 

 (56) 

 384 

 333 

 0 

 197 

 36 

 687 

 116 

 48 

 357 

4 008 

3 061 

36 962 

1 048 

 654 

 147 

 (9) 

3 006 

 72 

3 071 

3 071 

 0 

  Total 

216 522 

(2 298)  183 894  171 315 

226 803 

125 053 

 (227)  173 196 

72 005 

226 018 

452 821 

161 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.7.  DETAILED MFF: BREAKDOWN AND CHANGES IN COMMITMENT AND PAYMENT 

APPROPRIATIONS 

Annual accounts of the European Union 2022 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

12 239 

 1 

12 240 

 230 

5 244 

Total 
approp. 
available 

6=3+ 
4+5 
17 714 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

7 

8 

9=7+8 

10 

11 

12 559 

 (439) 

12 120 

Programme 

1  Horizon Europe 

  Euratom 

Thermonuclear Experimental 
Reactor (ITER) 

  Other actions 

  Pilot projects and prep. actions 

InvestEU Fund 

  CEF - Transport 

  CEF - Energy 

  CEF - Digital 

  Digital Europe 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 
  Single Market 

  EU Anti-Fraud 

  Taxation 

  Customs 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 

 271 

 710 

– 

 17 

1 197 

1 758 

 800 

 283 

1 248 

 192 

0 

 7 

 24 

 614 

 24 

 37 

 130 

 120 

 10 

 17 

 (1) 

– 

– 

– 

– 

 40 

 (3) 

 (34) 

 (15) 

 270 

 710 

– 

 17 

1 197 

1 799 

 797 

 249 

1 233 

 14 

 206 

0 

– 

 (1) 

 74 

– 

– 

– 

 (4) 

 (0) 

– 

– 

0 

 7 

 22 

 688 

 24 

 37 

 130 

 116 

 10 

 17 

2 008 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 80 

 23 

 690 

– 

4 677 

 17 

 14 

 2 

 31 

 13 

0 

 0 

 4 

 350 

 733 

 690 

 17 

5 874 

1 816 

 811 

 251 

1 264 

 219 

0 

 7 

 26 

 314 

 (44) 

 668 

 (107) 

– 

 16 

1 032 

1 886 

 589 

 257 

 849 

 192 

0 

 26 

 23 

– 

 (8) 

 25 

 79 

 43 

 (124) 

 (83) 

 (1) 

0 

 (5) 

 2 

 270 

 561 

– 

 9 

1 057 

1 966 

 632 

 133 

 766 

 191 

0 

 21 

 25 

 45 

 733 

 580 

 (39) 

 541 

 1 

 4 

 8 

 12 

 0 

– 

 26 

 41 

 139 

 128 

 10 

 17 

 31 

 36 

 115 

 120 

 9 

 13 

 (3) 

 (8) 

 (5) 

 (4) 

 0 

 (6) 

 28 

 28 

 109 

 116 

 9 

 8 

 127 

2 135 

2 088 

 (135) 

1 953 

162 

EUR million 

Total 
approp. 
available 

12=9+ 
10+11 

18 178 

 417 

 613 

 371 

 9 

2 775 

1 986 

 646 

 138 

 794 

 204 

0 

 21 

 26 

 605 

 29 

 32 

 118 

 128 

 9 

 8 

5 961 

 123 

 51 

 371 

– 

1 717 

 19 

 12 

 4 

 21 

 13 

0 

 0 

 1 

 57 

 1 

 4 

 8 

 12 

 0 

– 

 96 

 25 

 1 

– 

– 

 1 

 1 

 1 

 1 

 7 

– 

0 

– 

– 

 8 

– 

 0 

 0 

– 

– 

– 

 5 

  European Space Programme 

2 008 

 248 

2 206 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Programme 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

Total 
approp. 
available 

6=3+ 
4+5 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

7 

8 

9=7+8 

10 

11 

EUR million 

Total 
approp. 
available 

12=9+ 
10+11 

  Decentralised agencies 

  Pilot projects & preparatory actions 
Total Heading 1: Single Market, 
Innovation and Digital 

 68 

0 

– 

0 

 68 

0 

– 

0 

 2 

0 

 70 

0 

 68 

0 

 (5) 

0 

 64 

0 

– 

0 

 2 

0 

 65 

0 

21 775 

 70 

21 845 

 230 

10 995 

33 071 

21 474 

 (868) 

20 606 

 147 

8 625 

29 379 

2  Regional Development (ERDF) * 

30 174 

7 255 

37 429 

  Cohesion Fund 

4 865 

1 581 

6 446 

Cohesion Fund contrib. to CEF-
Transport 

  Pilot projects and prep. actions 

1 494 

 3 

– 

– 

1 494 

 3 

  European Social Fund Plus (ESF+) * 

13 174 

2 769 

15 943 

Support to Turkish-Cypriot 
Community 

  European Recovery and Resilience 

  Pericles IV 

  EU Recovery 

  RescEU 

  EU4Health 

Emergency support within the Union 
(ESI) 

  Decentralised agencies 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 

  Employment and Social Innovation 

  Erasmus+ 

  European Solidarity Corps (ESC) 

  Creative Europe 

Justice 

  Rights and Values 

  Decentralised agencies 

 34 

 119 

 1 

 145 

 101 

 840 

– 

 291 

– 

 12 

 106 

3 402 

 141 

 407 

 44 

 215 

 246 

– 

– 

– 

 (71) 

 253 

 (0) 

– 

 34 

 119 

 1 

 74 

 354 

 839 

– 

 (6) 

 284 

– 

 2 

 (19) 

– 

 14 

 88 

 4 

3 406 

– 

– 

– 

– 

 (2) 

 141 

 407 

 44 

 215 

 245 

– 

– 

– 

– 

– 

– 

7 983 

45 412 

29 597 

2 583 

32 181 

 657 

7 102 

11 162 

(1 675) 

9 488 

 12 

1 507 

1 851 

– 

1 851 

 0 

 3 

 3 

 (0) 

 3 

6 102 

22 045 

13 736 

 350 

14 087 

 1 

 35 

 37 

 6 

–  239 943  240 062 

 112 

 0 

 1 

 1 

 75 

1 959 

2 313 

 22 

 377 

 42 

– 

– 

 11 

 861 

 377 

 327 

– 

 14 

 99 

 1 

 145 

 187 

 353 

 8 

 276 

– 

 11 

 87 

 (14) 

 (0) 

 (71) 

 62 

 (163) 

 126 

 (6) 

 1 

 2 

 (0) 

 42 

 98 

 1 

 74 

 249 

 190 

 134 

 270 

 1 

 12 

 87 

 394 

3 800 

3 301 

 (20) 

3 281 

 20 

 19 

 9 

 2 

 4 

 161 

 426 

 53 

 217 

 249 

 116 

 400 

 38 

 170 

 238 

 16 

 (88) 

 1 

 (17) 

 (3) 

 132 

 313 

 39 

 154 

 235 

– 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

163 

 1 

 0 

– 

– 

 2 

 0 

 2 

– 

 2 

– 

 4 

– 

– 

– 

– 

 2 

 8 

 4 

 2 

 1 

 1 

– 

11 625 

 745 

 4 

 0 

43 807 

10 233 

1 855 

 3 

5 559 

19 647 

 0 

 43 

47 196 

47 296 

 0 

 1 

 329 

 10 

 377 

 42 

– 

– 

 11 

 519 

 22 

 22 

 10 

 2 

 4 

 1 

 76 

 578 

 204 

 512 

 311 

 1 

 12 

 100 

3 807 

 158 

 337 

 49 

 157 

 239 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Programme 

  Other actions 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 
Total Heading 2: Cohesion, 
Resilience and Values 
3  Agricultural Guarantees 

Other progr. of Natural Resources 
and Environment 
Agricultural Fund for Rural 
Development 

  Maritime and Fisheries 

  Fisheries (SFPA and RFMO) 

  Decentralised agencies 

  Pilot projects and prep. actions 

  Environment and Climate (LIFE) 

Just Transition Fund 
Loan facility under Just Transition 
Mechanism 

  Decentralised agencies 

  Pilot projects and prep. actions 

Total Heading 3: Natural Resources 
and Environment 

4  Asylum, Migration and Integration  

  Decentralised agencies 

  Pilot projects and prep. actions 
Border Mngmt. (IBMF) - Border 
mngmt and visa 
Border Mngmt. (IBMF) - Customs 
equipment 

Annual accounts of the European Union 2022 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

Total 
approp. 
available 

6=3+ 
4+5 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

7 

8 

9=7+8 

10 

11 

EUR million 

Total 
approp. 
available 

12=9+ 
10+11 

 9 

 35 

 183 

– 

– 

– 

 9 

 35 

 183 

– 

– 

– 

 3 

 0 

 5 

 11 

 36 

 7 

 52 

 (1) 

 (4) 

 6 

 48 

 187 

 164 

 1 

 165 

– 

– 

– 

 3 

 0 

 4 

 9 

 48 

 169 

56 039 

11 766 

67 805 

 0  257 566  325 372 

62 053 

1 088 

63 140 

 27 

66 487 

129 654 

40 369 

 0 

40 369 

 686 

 632 

41 687 

40 393 

 (37) 

40 356 

 687 

 632 

41 674 

0 

12 728 

 972 

 159 

 29 

 1 

 756 

1 160 

– 

 54 

 8 

0 

– 

0 

12 728 

 162 

1 134 

 0 

– 

– 

– 

 159 

 29 

 1 

 756 

 283 

1 443 

– 

– 

– 

– 

 54 

 8 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

0 

0 

0 

0 

6 072 

18 800 

14 680 

 (775) 

13 905 

 76 

1 210 

– 

 1 

– 

 159 

 30 

 1 

 732 

 166 

 29 

 6 

 10 

 765 

 529 

10 867 

12 310 

 167 

 167 

 7 

 0 

 61 

 8 

 1 

– 

 54 

 11 

 3 

 (7) 

– 

 (1) 

 (1) 

 0 

– 

– 

 (2) 

 736 

 159 

 29 

 5 

 528 

 1 

– 

 54 

 9 

0 

 0 

 1 

– 

– 

– 

 5 

– 

– 

– 

– 

0 

0 

1 623 

15 528 

 183 

– 

 1 

– 

 8 

 175 

 167 

 7 

 0 

 919 

 159 

 30 

 5 

 542 

 177 

 167 

 61 

 9 

56 235 

 446 

56 681 

 686 

17 832 

75 200 

56 602 

 (820) 

55 782 

 693 

2 797 

59 271 

 279 

1 399 

 2 

1 411 

1 292 

 194 

1 486 

 26 

1 119 

 154 

– 

 671 

 138 

 12 

– 

 85 

– 

 10 

 26 

 0 

 8 

– 

 166 

– 

 756 

 138 

 952 

– 

– 

– 

– 

– 

164 

 192 

 154 

 0 

– 

 6 

– 

 160 

– 

 764 

 511 

 135 

 646 

 138 

 64 

1 016 

 136 

 986 

 1 

 (42) 

 137 

 944 

 9 

 26 

 0 

 143 

– 

 64 

1 521 

 186 

 0 

 790 

 137 

1 008 

– 

– 

 1 

 0 

– 

  Decentralised agencies 

1 009 

 (57) 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

Total 
approp. 
available 

6=3+ 
4+5 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

7 

8 

9=7+8 

10 

11 

EUR million 

Total 
approp. 
available 

12=9+ 
10+11 

3 091 

 319 

3 410 

 2 

 108 

3 520 

3 078 

 294 

3 373 

 27 

 242 

3 642 

 227 

 99 

 44 

 216 

– 

 22 

 318 

 627 

 232 

– 

 27 

 254 

– 

– 

 1 

– 

– 

– 

– 

– 

– 

 99 

 44 

 217 

– 

 22 

 318 

 627 

 232 

– 

1 785 

 28 

1 813 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 5 

– 

 1 

 259 

 241 

 99 

 45 

 40 

 65 

 10 

 226 

 216 

– 

 0 

 7 

 15 

– 

– 

– 

 22 

 326 

 642 

 232 

– 

 0 

 21 

 178 

 379 

 98 

– 

 (28) 

 (3) 

 (24) 

 1 

– 

– 

 (18) 

 (23) 

 16 

– 

 213 

 37 

 41 

 217 

 0 

 21 

 160 

 356 

 114 

– 

 38 

1 851 

1 238 

 (79) 

1 159 

 1 

– 

 2 

– 

– 

– 

 1 

 1 

 1 

– 

 5 

 5 

– 

 1 

 10 

– 

 0 

 4 

 8 

– 

– 

 219 

 37 

 44 

 226 

 0 

 21 

 165 

 364 

 115 

– 

 28 

1 192 

12 717 

 (94) 

12 622 

1 864 

 258 

14 744 

7 892 

 451 

8 343 

 990 

 307 

9 640 

Programme 

Total Heading 4: Migration and 
Border Management 

5  Internal Security Fund (ISF) 

  Nuclear decommissioning 

Nuclear Safety and 
decommissioning 

  Decentralised agencies 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 

  European Defence (Research) 

  European Defence (Non Research) 

  Military Mobility 

  Pilot projects and prep. actions 
Total Heading 5: Security and 
Defence 
Neighbourhood, Developm. and Intl. 
Cooperation 
Instrument for Nuclear Safety 
(EINS) 

6 

 39 

– 

 39 

  Humanitarian Aid (HUMA) 

1 806 

 636 

2 442 

Common Foreign and Security Policy 
(CFSP) 
Overseas Countries and Territories 
(OCT) 

  Other actions 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 

 362 

 69 

 72 

– 

 95 

– 

– 

 (22) 

– 

– 

 362 

 69 

 50 

– 

 95 

 0 

 39 

– 

 4 

– 

– 

– 

 3 

 24 

 25 

– 

 1 

– 

 1 

 42 

 33 

 (16) 

 16 

 1 

2 505 

2 092 

 306 

2 398 

 45 

 387 

 334 

 50 

 384 

 73 

 51 

– 

 95 

 52 

 47 

– 

 95 

 (22) 

 (7) 

 0 

 (1) 

 30 

 40 

 0 

 94 

 0 

 1 

– 

– 

– 

 3 

 24 

 25 

– 

 1 

– 

 0 

 20 

2 467 

 409 

 31 

 41 

 0 

 95 

  Pre-Accession Assistance (IPA III) 

2 012 

 (19) 

1 992 

 331 

 145 

2 468 

2 372 

 (521) 

1 851 

 11 

 338 

2 200 

  Pilot projects and prep. actions 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Total Heading 6: Neighbourhood 
and the World 

17 170 

 500 

17 670 

2 237 

 456 

20 364 

12 916 

 240 

13 156  1 048 

 698 

14 902 

165 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Programme 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

Total 
approp. 
available 

6=3+ 
4+5 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

7 

8 

9=7+8 

10 

11 

EUR million 

Total 
approp. 
available 

12=9+ 
10+11 

7  Staff Pensions 

2 086 

(Pensions former Members) EP 

(Pensions former Members) ECC 
(Pensions former Members) 
Commission 
(Pensions former Members) CJEU 

(Pensions former Members) ECA 
(Pensions former Members) 
Ombudsman 
(Pensions former Members) EDPS 

  European schools 

  Remuneration statutory staff 

  Remuneration external staff 

  Members - Salaries and allowances 

  Members - Temporary allowances 

  Recruitment costs 

  Termination of service 

  Training costs 

  Social and Mobility 

Information and comm. technology 

  Rents and purchases 

Linked to buildings 

  Security 

  Mission and representation 

  Meetings, committees, conference 

  Official journal 

  Publications 

  Acquisition of information 

 11 

 1 

 8 

 13 

 6 

 0 

 0 

 207 

2 625 

 253 

 14 

 3 

 30 

 8 

 18 

 22 

 252 

 310 

 106 

 66 

 51 

 26 

 3 

 10 

 4 

 77 

 1 

– 

– 

 0 

– 

 0 

 0 

 9 

 3 

 8 

 1 

 (0) 

 1 

 0 

 (0) 

 (1) 

 3 

 (21) 

 25 

 (2) 

 (1) 

 (13) 

 (1) 

 3 

 (0) 

2 162 

 12 

 1 

 8 

 13 

 6 

 0 

 0 

 215 

2 629 

 261 

 15 

 2 

 31 

 9 

 17 

 22 

 255 

 289 

 131 

 64 

 50 

 13 

 2 

 13 

 4 

 236 

2 398 

2 086 

– 

– 

– 

– 

– 

– 

– 

 25 

 91 

 71 

 0 

– 

 1 

– 

 6 

 28 

 106 

 49 

 32 

 15 

 4 

 2 

– 

 3 

 0 

 12 

 1 

 8 

 13 

 6 

 0 

 0 

 11 

 1 

 8 

 13 

 6 

 0 

 0 

 240 

 207 

2 719 

2 625 

 332 

 253 

 15 

 2 

 33 

 9 

 23 

 50 

 362 

 337 

 164 

 79 

 53 

 15 

 2 

 17 

 4 

 14 

 3 

 30 

 8 

 18 

 22 

 252 

 310 

 106 

 66 

 51 

 26 

 3 

 10 

 4 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

166 

 77 

 1 

– 

– 

 0 

– 

 0 

 0 

 9 

 3 

 8 

 1 

 (0) 

 1 

 0 

 (0) 

 (1) 

 3 

 (21) 

 25 

 (2) 

 (1) 

 (13) 

 (1) 

 3 

 (0) 

2 162 

 12 

 1 

 8 

 13 

 6 

 0 

 0 

 215 

2 629 

– 

– 

– 

– 

– 

– 

– 

– 

 2 

 0 

 261 

 39 

 15 

 2 

 31 

 9 

 17 

 22 

 2 

– 

 2 

– 

 12 

 14 

 255 

 163 

 289 

 131 

 64 

 50 

 13 

 2 

 13 

 4 

 18 

 51 

 32 

 12 

 4 

 1 

 7 

 2 

 236 

2 398 

– 

– 

– 

– 

– 

– 

– 

 25 

 91 

 71 

 0 

– 

 1 

– 

 6 

 29 

 106 

 49 

 32 

 15 

 4 

 2 

– 

 3 

 0 

 12 

 1 

 8 

 13 

 6 

 0 

 0 

 242 

2 719 

 371 

 17 

 2 

 35 

 9 

 36 

 64 

 525 

 356 

 215 

 111 

 65 

 20 

 3 

 24 

 6 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

Total 
approp. 
available 

6=3+ 
4+5 

Budget appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Additional 
appropriations 

Carry-
overs 

Assigned 
revenue 

7 

8 

9=7+8 

10 

11 

 4 

 17 

 27 

 18 

– 

 (1) 

 4 

 4 

 (1) 

– 

 3 

 20 

 31 

 17 

– 

– 

– 

– 

– 

– 

 0 

 12 

 41 

 14 

– 

 3 

 32 

 72 

 31 

– 

 4 

 17 

 27 

 18 

 0 

 (1) 

 4 

 4 

 (1) 

 (0) 

 3 

 20 

 31 

 17 

 0 

 4 

 13 

 4 

 8 

– 

 0 

 12 

 41 

 14 

– 

EUR million 

Total 
approp. 
available 

12=9+ 
10+11 

 8 

 44 

 76 

 38 

 0 

4 421 

 64 

4 485 

 22 

 534 

5 041 

4 421 

 64 

4 485 

 695 

 544 

5 724 

10 620 

 163 

10 783 

 22 

1 269 

12 075 

10 620 

 163 

10 783  1 085 

1 281 

13 149 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

6 570 

6 570 

 122 

 122 

6 692 

6 692 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

6 705 

 124 

6 830 

1 299 

 (580) 

 718 

 12 

 201 

1 299 

– 

– 

 201 

– 

1 299 

1 291 

 1 

 8 

– 

 732 

1 299 

 (580) 

 718 

 12 

 210 

 25 

 (2) 

 23 

– 

2 590 

1 299 

– 

1 299  1 291 

2 799 

 (580) 

2 219 

1 303 

 10 

3 531 

2 623 

 (583) 

2 040  1 303 

 1 

 7 

– 

 8 

6 705 

 124 

6 830 

 732 

 30 

2 590 

3 351 

Programme 

  Studies and investigations 

General equipment, vehicle, 
furniture 
Linguistic external services 

  Other administrative expenditure 

  Pilot projects and prep. actions 

Administrative expenditure of Other 
Institutions 
Total Heading 7: European Public 
Administration 

O  Innovation Fund (IF) 

  Other actions 

S 

  Total Heading O: Outside MFF 
Solidarity and Emergency Aid 
(SEAR) 
European Globalisation Adjustment 
(EGF) 

  Brexit Adjustment Reserve 
Total Heading S: Solidarity 
mechanisms within and outside the 
Union (Special instruments) 

  Total 
261 370 
* This MFF programme includes the complementary financial envelope from the NextGenerationEU for the REACT-EU package. Please consult the chapter 1.1 Multiannual Financial 
Framework  2021-2027  of  the  Notes  to  the  Budgetary  Implementation  Reports.  The  paragraph  on  Heading  2  details  the  contribution  of  this  MFF  programme  to  the  REACT-EU 
package. 

4 481  294 968  481 676  170 603 

 (565)  170 038  4 335 

12 711  182 227 

169 516 

86 996 

167 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.8.  DETAILED MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Union 2022 

Commitments made 

Appropriations carried over 
to 2023 

Appropriations lapsing 

  EUR million 

Programme 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

17 714 

12 239 

 230 

2 840 

5=2+3 
+4 
15 309 

 86 % 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

1  Horizon Europe 

  Euratom 

Thermonuclear Experimental 
Reactor (ITER) 

  Other actions 

  Pilot projects and prep. actions 

InvestEU Fund 

  CEF - Transport 

  CEF - Energy 

  CEF - Digital 

  Digital Europe 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 
  Single Market 

  EU Anti-Fraud 

  Taxation 

  Customs 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 

 350 

 270 

 733 

 710 

 690 

 17 

– 

 17 

5 874 

1 197 

1 816 

1 799 

 811 

 251 

 797 

 249 

1 264 

1 233 

 219 

 206 

0 

 7 

0 

 7 

 26 

 22 

 733 

 688 

 26 

 41 

 139 

 128 

 10 

 17 

 24 

 37 

 130 

 116 

 10 

 17 

  European Space Programme 

2 135 

2 008 

  Decentralised agencies 

Pilot projects & preparatory 
actions 

 70 

0 

 68 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

 26 

 16 

 61 

– 

 296 

 85 % 

 726 

 99 % 

 61 

 9 % 

 17 

 100 % 

2 151 

3 348 

 57 % 

 2 

 4 

– 

 31 

 10 

0 

– 

 3 

1 801 

 99 % 

 801 

 249 

 99 % 

 99 % 

1 264 

 100 % 

 216 

 98 % 

0 

 7 

- 

 97 % 

 25 

 96 % 

 21 

 709 

 97 % 

 0 

 1 

 4 

 7 

 0 

– 

 25 

 38 

 134 

 123 

 96 % 

 93 % 

 97 % 

 96 % 

 10 

 100 % 

 17 

 100 % 

 77 

2 086 

 98 % 

 2 

0 

 70 

 100 % 

0 

- 

168 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

2 404 

2 404 

 54 

 7 

 54 

 7 

 629 

 629 

– 

– 

2 526 

2 526 

 15 

 10 

 2 

– 

 4 

0 

 0 

 1 

 15 

 10 

 2 

– 

 4 

0 

 0 

 1 

 24 

 24 

 1 

 3 

 4 

 5 

 0 

– 

 1 

 3 

 4 

 5 

 0 

– 

 50 

 50 

– 

0 

– 

0 

 1 

– 

 0 

– 

– 

 0 

 0 

 0 

 0 

 0 

– 

0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

– 

 0 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

 0 

 0 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

0 

– 

– 

 0 

 1 

– 

– 

– 

– 

– 

– 

– 

0 

Total 

13=10+ 
11+12 

 1 

 0 

 0 

– 

– 

 0 

 0 

 0 

 0 

 0 

– 

0 

 0 

 0 

 0 

 1 

 0 

 0 

 0 

– 

 0 

– 

– 

0 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Commitments made 

Appropriations carried over 
to 2023 

Appropriations lapsing 

  EUR million 

Programme 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

5=2+3 
+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

Total Heading 1: Single Market, 
Innovation and Digital 

33 071 

21 843 

 230 

5 257 

27 330 

83 % 

– 

5 738 

5 738 

 2 

240 062 

 119 

–  136 396  136 515 

 57 % 

–  103 547  103 547 

2  Regional Development (ERDF) * 

45 412 

36 556 

  Cohesion Fund 

Cohesion Fund contrib. to CEF-
Transport 

  Pilot projects and prep. actions 
European Social Fund Plus 
(ESF+) * 
Support to Turkish-Cypriot 
Community 
European Recovery and 
Resilience 
  Pericles IV 

  EU Recovery 

  RescEU 

  EU4Health 

Emergency support within the 
Union (ESI) 

7 102 

6 220 

1 507 

1 494 

 3 

 3 

22 045 

15 886 

 35 

 34 

 1 

 75 

2 313 

 861 

 377 

 1 

 74 

 354 

 839 

– 

  Decentralised agencies 

 327 

 284 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 
Employment and Social 
Innovation 
  Erasmus+ 

  European Solidarity Corps (ESC) 

  Creative Europe 

Justice 

  Rights and Values 

  Decentralised agencies 

  Other actions 

– 

 14 

 99 

– 

 13 

 86 

3 800 

3 406 

 161 

 426 

 53 

 217 

 249 

 11 

 141 

 407 

 44 

 215 

 245 

 8 

– 

– 

– 

– 

– 

– 

7 799 

44 355 

 98 % 

 151 

 601 

6 822 

 96 % 

 12 

1 507 

 100 % 

– 

 3 

 99 % 

6 060 

21 946 

 100 % 

 1 

 35 

 100 % 

– 

– 

– 

 8 

– 

 155 

 11 

 0 

– 

 33 

 0 

 306 

 11 

 0 

– 

 41 

 0 

– 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

 1 

 97 % 

 74 

 99 % 

 760 

1 114 

 48 % 

 21 

 860 

 100 % 

 343 

 343 

 91 % 

 15 

 299 

 92 % 

– 

– 

 3 

– 

- 

 13 

 96 % 

 90 

 90 % 

 211 

3 617 

 95 % 

 13 

 13 

 6 

 1 

 3 

 1 

 155 

 419 

 96 % 

 98 % 

 49 

 94 % 

 216 

 247 

 99 % 

 99 % 

 9 

 78 % 

169 

– 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 1 

 0 

 1 

1 198 

1 199 

 1 

 35 

 27 

– 

– 

 7 

 1 

 35 

 27 

– 

– 

 7 

 183 

 183 

 6 

 6 

 3 

 1 

 2 

 2 

 6 

 6 

 3 

 1 

 2 

 2 

 722 

 225 

– 

– 

 49 

 0 

 0 

 0 

– 

 0 

 0 

– 

– 

– 

 1 

 2 

– 

– 

– 

– 

 0 

– 

 1 

Total 

13=10+ 
11+12 

 3 

 751 

 270 

 0 

 0 

 58 

 0 

 0 

 0 

– 

 0 

 0 

 0 

– 

– 

 1 

 2 

 0 

– 

– 

– 

 0 

– 

 1 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 1 

 29 

 44 

 0 

 0 

 9 

 (0) 

 0 

– 

– 

– 

 (0) 

 0 

– 

– 

– 

 1 

 0 

– 

– 

– 

– 

– 

– 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Commitments made 

Appropriations carried over 
to 2023 

Appropriations lapsing 

  EUR million 

Programme 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

5=2+3 
+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

Total 

13=10+ 
11+12 

  Maritime and Fisheries 

1 210 

1 131 

  Fisheries (SFPA and RFMO) 

 159 

 159 

  Decentralised agencies 

  Pilot projects and prep. actions 

 30 

 1 

 29 

 1 

  Environment and Climate (LIFE) 

 765 

 755 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 
Total Heading 2: Cohesion, 
Resilience and Values 
3  Agricultural Guarantees 
Other progr. of Natural 
Resources and Environment 
Agricultural Fund for Rural 
Development 

Just Transition Fund 
Loan facility under Just 
Transition Mechanism 
  Decentralised agencies 

  Pilot projects and prep. actions 

Total Heading 3: Natural 
Resources and Environment 
Asylum, Migration and 
Integration  

4 

  Decentralised agencies 

  Pilot projects and prep. actions 
Border Mngmt. (IBMF) - Border 
mngmt and visa 
Border Mngmt. (IBMF) - 
Customs equipment 
  Decentralised agencies 

Total Heading 4: Migration and 
Border Management 

 36 

 35 

 187 

 181 

– 

– 

– 

 3 

 35 

 98 % 

 184 

 98 % 

– 

– 

 0 

 2 

 0 

 2 

 0 

 2 

325 372 

66 644 

 0  152 263  218 907 

67 % 

 159  105 221  105 381 

1 002 

41 687 

39 876 

 676 

 629 

41 182 

 99 % 

 485 

0 

0 

18 800 

12 728 

12 310 

1 327 

 167 

 61 

 8 

– 

 54 

 8 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

0 

- 

5 689 

18 416 

 98 % 

 75 

1 206 

 100 % 

– 

 1 

– 

 3 

 159 

 100 % 

 29 

 98 % 

 1 

 100 % 

 758 

 99 % 

4 982 

6 309 

 51 % 

 11 

 11 

 7 % 

 7 

– 

 61 

 100 % 

 8 

 99 % 

0 

– 

 3 

– 

– 

– 

– 

– 

– 

– 

– 

 2 

0 

 488 

0 

 222 

 222 

 1 

– 

 1 

– 

 7 

 4 

– 

 1 

– 

 7 

 7 

0 

 0 

 0 

 0 

– 

– 

 0 

5 885 

5 885 

 116 

 156 

 156 

 0 

 0 

 0 

 0 

– 

– 

 0 

– 

– 

– 

 10 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 2 

 82 

1 084 

 0 

0 

 18 

0 

 161 

 161 

 0 

– 

– 

– 

 0 

– 

– 

 0 

– 

 0 

 0 

– 

– 

 0 

 116 

– 

 0 

 0 

75 200 

56 070 

 676 

11 396 

68 142 

91 % 

 488 

6 275 

6 763 

 123 

 10 

 161 

 295 

1 411 

1 391 

 2 

 9 

1 401 

 99 % 

 192 

 166 

 0 

– 

 764 

 748 

 138 

 138 

1 016 

 952 

– 

– 

– 

– 

– 

3 520 

3 395 

 2 

– 

 8 

– 

 16 

 50 

 18 

 184 

 96 % 

– 

– 

 756 

 99 % 

 138 

 100 % 

 967 

 95 % 

 8 

– 

– 

 8 

– 

– 

 2 

 8 

 0 

 0 

– 

 48 

 58 

 10 

 8 

 0 

 8 

– 

 48 

 74 

 0 

– 

– 

 0 

– 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

 0 

– 

 0 

 0 

 0 

 0 

 0 

 0 

– 

 0 

 0 

3 446 

98 % 

 16 

170 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Commitments made 

Appropriations carried over 
to 2023 

Appropriations lapsing 

  EUR million 

Programme 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

5=2+3 
+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

14 744 

12 589 

1 864 

 146 

14 598 

 99 % 

 34 

 113 

 146 

 30 

1 840 

99 % 

 3 

 7 

 11 

5  Internal Security Fund (ISF) 

 259 

 251 

  Nuclear decommissioning 

Nuclear Safety and 
decommissioning 

 99 

 45 

 99 

 44 

  Decentralised agencies 

 226 

 217 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 

– 

 22 

– 

 22 

  European Defence (Research) 

 326 

 318 

  Humanitarian Aid (HUMA) 

2 505 

2 442 

European Defence (Non 
Research) 

  Military Mobility 

  Pilot projects and prep. actions 
Total Heading 5: Security and 
Defence 
Neighbourhood, Developm. and 
Intl. Cooperation 
Instrument for Nuclear Safety 
(EINS) 

6 

Common Foreign and Security 
Policy (CFSP) 
Overseas Countries and 
Territories (OCT) 

  Other actions 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 
Pre-Accession Assistance (IPA 
III) 

 642 

 627 

 232 

 232 

– 

– 

1 851 

1 809 

 42 

 39 

 387 

 362 

 73 

 51 

– 

 95 

 68 

 50 

– 

 95 

 255 

 98 % 

 3 

 4 

– 

 0 

 4 

– 

 0 

 7 

 99 

 100 % 

 44 

 99 % 

 221 

 98 % 

– 

- 

 22 

 99 % 

 326 

 100 % 

 15 

 642 

 100 % 

– 

– 

 232 

 100 % 

– 

- 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 39 

– 

 4 

– 

– 

– 

 2 

 16 

 25 

– 

– 

– 

 0 

 41 

 98 % 

2 497 

 100 % 

 387 

 100 % 

 72 

 99 % 

 50 

 99 % 

– 

- 

 95 

 100 % 

 1 

– 

 0 

 6 

– 

 0 

– 

– 

– 

– 

 5 

– 

 0 

 6 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

 1 

– 

– 

– 

 4 

0 

 1 

 7 

 0 

– 

 1 

– 

 0 

 1 

 7 

 0 

 1 

 1 

– 

 0 

 51 

0 

 55 

0 

2 468 

1 989 

 331 

 94 

2 413 

 98 % 

  Pilot projects and prep. actions 

0 

0 

0 

0 

0 

- 

Total Heading 6: Neighbourhood 
and the World 
7  Staff Pensions 

20 364 

17 633 

2 237 

 283 

20 153 

99 % 

 38 

 173 

 211 

2 398 

2 162 

– 

 236 

2 398 

 100 % 

– 

– 

– 

171 

Total 

13=10+ 
11+12 

 0 

– 

 0 

 0 

– 

 0 

– 

– 

– 

– 

 1 

 0 

 0 

– 

 0 

 0 

 0 

– 

 0 

 0 

0 

 0 

– 

 0 

– 

 0 

– 

– 

 0 

– 

– 

– 

– 

 0 

 (0) 

 (0) 

– 

 0 

 (0) 

 0 

– 

 0 

 (0) 

0 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

– 

– 

 0 

– 

– 

– 

 0 

0 

 0 

– 

 (0) 

– 

 0 

 0 

– 

 0 

– 

– 

– 

– 

 0 

 0 

– 

– 

 (0) 

– 

– 

– 

– 

– 

0 

 0 

– 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Commitments made 

Appropriations carried over 
to 2023 

Appropriations lapsing 

  EUR million 

Programme 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

5=2+3 
+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

(Pensions former Members) EP 

(Pensions former Members) ECC 
(Pensions former Members) 
Commission 
(Pensions former Members) 
CJEU 
(Pensions former Members) ECA 
(Pensions former Members) 
Ombudsman 
(Pensions former Members) 
EDPS 

 12 

 1 

 8 

 13 

 6 

 0 

 0 

 12 

 1 

 8 

 13 

 6 

 0 

 0 

  European schools 

 240 

 215 

  Remuneration statutory staff 

2 719 

2 629 

  Remuneration external staff 
Members - Salaries and 
allowances 
Members - Temporary 
allowances 

  Recruitment costs 

  Termination of service 

  Training costs 

  Social and Mobility 

Information and comm. 
technology 

  Rents and purchases 

Linked to buildings 

  Security 

  Mission and representation 
Meetings, committees, 
conference 
  Official journal 

  Publications 

 332 

 253 

 15 

 2 

 33 

 9 

 23 

 50 

 15 

 2 

 31 

 9 

 17 

 22 

 362 

 255 

 337 

 164 

 79 

 53 

 15 

 2 

 17 

 289 

 131 

 64 

 50 

 12 

 2 

 13 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 19 

 36 

 33 

 0 

– 

 0 

– 

 3 

 17 

 59 

 34 

 21 

 12 

 2 

 1 

– 

 3 

 12 

 100 % 

 1 

 100 % 

 8 

 100 % 

 13 

 100 % 

 6 

 100 % 

 0 

 100 % 

 0 

 100 % 

 235 

 98 % 

2 665 

 98 % 

 286 

 86 % 

 15 

 100 % 

 2 

 100 % 

 32 

 97 % 

 9 

 100 % 

 21 

 39 

 89 % 

 78 % 

 314 

 87 % 

 323 

 152 

 76 

 51 

 96 % 

 93 % 

 96 % 

 96 % 

 13 

 86 % 

 2 

 100 % 

 16 

 95 % 

172 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 6 

 55 

 38 

 0 

– 

 1 

– 

 2 

 11 

 47 

 14 

 12 

 3 

 2 

 1 

– 

 1 

– 

– 

– 

– 

– 

– 

– 

 6 

 55 

 38 

 0 

– 

 1 

– 

 2 

 11 

 47 

 14 

 12 

 3 

 2 

 1 

– 

 1 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

 8 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 1 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 (0) 

– 

– 

– 

 0 

 0 

 0 

– 

– 

 0 

 0 

 0 

– 

 0 

Total 

13=10+ 
11+12 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

 8 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 1 

– 

 0 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Commitments made 

Appropriations carried over 
to 2023 

Appropriations lapsing 

  EUR million 

Programme 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

5=2+3 
+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

  Acquisition of information 

  Studies and investigations 

General equipment, vehicle, 
furniture 
Linguistic external services 

  Other administrative expenditure 

  Pilot projects and prep. actions 
Administrative expenditure of 
Other Institutions 
Total Heading 7: European 
Public Administration 
O  Innovation Fund (IF) 

  Other actions 

S 

  Total Heading O: Outside MFF 
Solidarity and Emergency Aid 
(SEAR) 
European Globalisation 
Adjustment (EGF) 

  Brexit Adjustment Reserve 
Total Heading S: Solidarity 
mechanisms within and outside 
the Union (Special instruments) 

 4 

 3 

 32 

 72 

 31 

– 

 4 

 3 

 20 

 31 

 17 

– 

5 041 

4 445 

12 075 

10 733 

6 570 

 122 

6 692 

 732 

 210 

– 

– 

– 

 18 

 28 

– 

– 

– 

– 

– 

– 

 21 

 21 

– 

– 

– 

 12 

– 

2 590 

1 253 

1 291 

3 531 

1 299 

1 303 

 0 

 0 

 5 

 33 

 11 

– 

 4 

 3 

 99 % 

 96 % 

 25 

 79 % 

 64 

 28 

– 

 89 % 

 93 % 

- 

 384 

4 850 

 96 % 

 911 

11 664 

97 % 

2 953 

2 953 

 45 % 

 53 

 53 

 43 % 

3 006 

3 006 

 45 % 

– 

– 

– 

– 

– 

– 

 1 

 1 

– 

– 

– 

 0 

 0 

 7 

 8 

 2 

– 

 0 

 0 

 7 

 8 

 2 

– 

 149 

 150 

 358 

 359 

3 617 

3 617 

 69 

 69 

3 686 

3 686 

– 

– 

– 

– 

 30 

 4 % 

 700 

 28 

 13 % 

2 544 

 98 % 

– 

 46 

2 602 

74 % 

 746 

 1 

 1 

– 

 3 

 702 

 1 

 46 

 749 

 173 

Total 

13=10+ 
11+12 

 0 

 0 

 0 

 0 

 0 

– 

 41 

 52 

– 

– 

– 

– 

 180 

– 

 180 

– 

– 

– 

– 

– 

– 

 1 

 1 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

 0 

 0 

– 

 0 

 1 

– 

– 

– 

– 

 7 

– 

 7 

 0 

 0 

 0 

 0 

 0 

– 

 40 

 50 

– 

– 

– 

– 

 173 

– 

  Total 
1 614 
* This MFF programme includes the complementary financial envelope from the NextGenerationEU for the REACT-EU package. Please consult the chapter 1.1 Multiannual Financial 
Framework  2021-2027  of  the  Notes  to  the  Budgetary  Implementation  Reports.  The  paragraph  on  Heading  2  details  the  contribution  of  this  MFF  programme  to  the  REACT-EU 
package. 

1 451  121 520  122 971 

4 469  173 196  357 091 

481 676  179 425 

1 351 

74 % 

 252 

 12 

173 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.9.  DETAILED MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS 

Annual accounts of the European Union 2022 

Programme 

Total 
appropr. 
available 

Payments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2023 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

from 
final 
adopted 
budge 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

5=2+ 
3+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

1 

Horizon Europe 

18 178 

12 048 

Euratom 

 417 

 253 

 87 

 21 

2 698 

14 834 

 82 % 

 12 

 286 

 68 % 

 71 

 16 

3 260 

3 331 

 111 

 127 

 613 

 560 

 1 

 44 

 605 

 99 % 

Thermonuclear 
Experimental Reactor 
(ITER) 

Other actions 

Pilot projects and prep. 
actions 

 371 

 9 

– 

 8 

InvestEU Fund 

2 775 

1 057 

CEF - Transport 

1 986 

1 965 

CEF - Energy 

CEF - Digital 

Digital Europe 

Decentralised agencies 

Other actions 

Pilot projects and prep. 
actions 
Actions under 
prerogatives of 
Commission 

Single Market 

EU Anti-Fraud 

Taxation 

Customs 

Decentralised agencies 

Other actions 

 646 

 138 

 794 

 204 

0 

 21 

 26 

 630 

 132 

 754 

 191 

0 

 14 

 24 

 605 

 533 

 29 

 32 

 118 

 128 

 9 

 22 

 27 

 109 

 116 

 9 

– 

– 

 1 

 1 

 1 

 1 

 7 

– 

0 

– 

– 

 7 

– 

 0 

 0 

– 

– 

 64 

– 

 64 

 17 % 

 8 

 90 % 

1 605 

2 663 

 96 % 

 8 

1 974 

 99 % 

 12 

 4 

 21 

 10 

0 

– 

 643 

 100 % 

 137 

 99 % 

 782 

 98 % 

 201 

 98 % 

0 

- 

 14 

 67 % 

 0 

 25 

 95 % 

 19 

 560 

 92 % 

 1 

 1 

 4 

 7 

 0 

 23 

 28 

 78 % 

 87 % 

 113 

 96 % 

 123 

 96 % 

 9 

 96 % 

174 

 1 

– 

– 

 0 

 0 

 2 

 0 

 9 

– 

0 

– 

– 

 6 

– 

 0 

 0 

– 

– 

 7 

 8 

 306 

 306 

– 

– 

 112 

 112 

 11 

 11 

 0 

 1 

– 

 4 

0 

 0 

 1 

 2 

 1 

 9 

 4 

0 

 0 

 1 

 37 

 43 

 1 

 3 

 4 

 5 

 0 

 1 

 3 

 4 

 5 

 0 

EUR million 

Appropriations lapsing 

Total 

13=10+ 
11+12 

 12 

 4 

 0 

– 

 1 

 0 

 0 

 0 

 0 

 3 

– 

0 

 7 

 0 

 3 

 6 

 1 

 0 

 0 

 0 

 1 

 1 

 0 

– 

 1 

 0 

 0 

 0 

 0 

 3 

– 

0 

 7 

 0 

 1 

 6 

 1 

 0 

 0 

 0 

 9 

 4 

 0 

– 

– 

– 

 0 

 0 

 0 

 0 

– 

0 

– 

– 

 1 

– 

 0 

– 

– 

– 

 2 

 0 

– 

– 

– 

 0 

– 

 (0) 

– 

 0 

– 

0 

– 

– 

 0 

– 

– 

– 

– 

– 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Programme 

Total 
appropr. 
available 

Payments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2023 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

EUR million 

Appropriations lapsing 

from 
final 
adopted 
budge 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

5=2+ 
3+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

Pilot projects and prep. 
actions 
European Space 
Programme 

Decentralised agencies 

Pilot projects & 
preparatory actions 
Total Heading 1: Single 
Market, Innovation and 
Digital 
Regional Development 
(ERDF) * 

2 

 8 

 7 

2 206 

1 948 

 65 

0 

 64 

0 

– 

 5 

– 

0 

– 

 7 

 91 % 

 59 

2 012 

 91 % 

 2 

0 

 65 

 100 % 

0 

- 

– 

 5 

– 

0 

– 

– 

 189 

 193 

– 

0 

– 

0 

 1 

 0 

– 

0 

– 

 1 

– 

0 

29 379 

20 471 

 132 

4 570 

25 174 

86 % 

 112 

4 052 

4 164 

 23 

 15 

43 807 

32 175 

Cohesion Fund 

10 233 

9 487 

Cohesion Fund contrib. 
to CEF-Transport 
Pilot projects and prep. 
actions 
European Social Fund 
Plus (ESF+) * 
Support to Turkish-
Cypriot Community 
European Recovery and 
Resilience 

Pericles IV 

EU Recovery 

RescEU 

EU4Health 

Emergency support 
within the Union (ESI) 

Decentralised agencies 

Pilot projects and prep. 
actions 
Actions under 
prerogatives of 
Commission 

1 855 

1 851 

 3 

 2 

19 647 

14 084 

 43 

47 296 

 1 

 76 

 578 

 204 

 512 

 311 

 1 

 42 

 96 

 1 

 45 

 233 

 186 

 134 

 270 

 1 

 12 

 11 

 1 

 0 

– 

– 

 0 

 0 

 1 

– 

 2 

– 

 3 

– 

– 

– 

– 

10 283 

42 459 

 97 % 

 521 

10 009 

 98 % 

 4 

 0 

1 855 

 100 % 

 2 

 69 % 

4 606 

18 690 

 95 % 

 0 

 42 

 98 % 

47 178 

47 275 

 100 % 

 0 

 0 

 1 

 81 % 

 47 

 61 % 

 320 

 553 

 96 % 

 9 

 198 

 97 % 

 324 

 458 

 90 % 

 15 

 284 

 91 % 

– 

– 

 1 

 100 % 

 11 

 95 % 

175 

 1 

 0 

– 

– 

 2 

 1 

 2 

– 

 29 

 16 

 4 

– 

– 

– 

– 

1 342 

1 343 

 224 

 224 

 0 

– 

 0 

– 

 953 

 956 

 0 

 18 

 0 

 1 

 8 

 1 

 53 

 27 

– 

– 

 1 

 20 

 0 

 30 

 25 

 4 

 53 

 27 

– 

– 

 5 

 0 

 0 

 1 

 0 

 0 

 0 

 0 

– 

 (0) 

 0 

 0 

 0 

– 

 1 

 0 

 0 

– 

– 

 1 

 0 

 0 

– 

 0 

– 

 1 

– 

– 

– 

– 

Total 

13=10+ 
11+12 

 1 

 1 

– 

0 

 41 

 5 

 0 

 0 

 1 

 1 

 0 

 0 

 0 

 0 

 0 

 1 

 0 

 0 

– 

 1 

– 

 0 

– 

0 

 3 

 (0) 

– 

 0 

– 

 0 

 0 

 0 

– 

– 

 0 

 0 

 0 

– 

– 

– 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Programme 

Total 
appropr. 
available 

Payments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2023 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

EUR million 

Appropriations lapsing 

from 
final 
adopted 
budge 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

5=2+ 
3+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

Employment and Social 
Innovation 

 100 

 85 

Erasmus+ 

3 807 

3 269 

 2 

 8 

 4 

 2 

 1 

 1 

– 

– 

– 

– 

 4 

 91 

 91 % 

 198 

3 474 

 91 % 

 1 

 13 

 7 

 9 

 321 

 333 

 2 

 13 

 9 

 1 

 3 

 1 

– 

 2 

 134 

 84 % 

 325 

 96 % 

 48 

 97 % 

 154 

 98 % 

 237 

 99 % 

 7 

 82 % 

 48 

 99 % 

 166 

 98 % 

 4 

 2 

 1 

 1 

– 

– 

– 

– 

 21 

 9 

 1 

 1 

 2 

 2 

 0 

 3 

 25 

 11 

 1 

 2 

 2 

 2 

 0 

 3 

 158 

 337 

 49 

 157 

 239 

 9 

 48 

 128 

 310 

 38 

 153 

 235 

 6 

 48 

 169 

 164 

European Solidarity 
Corps (ESC) 

Creative Europe 

Justice 

Rights and Values 

Decentralised agencies 

Other actions 

Pilot projects and prep. 
actions 
Actions under 
prerogatives of 
Commission 
Total Heading 2: 
Cohesion, Resilience 
and Values 

129 654 

63 055 

 24 

63 491  126 570 

98 % 

 76 

2 995 

3 071 

3 

Agricultural Guarantees 

41 674 

39 846 

 677 

 629 

41 152 

 99 % 

 486 

Other progr. of Natural 
Resources and 
Environment 
Agricultural Fund for 
Rural Development 

Maritime and Fisheries 

Fisheries (SFPA and 
RFMO) 

Decentralised agencies 

Pilot projects and prep. 
actions 
Environment and 
Climate (LIFE) 

Just Transition Fund 

0 

0 

0 

0 

0 

- 

15 528 

13 839 

 919 

 159 

 30 

 5 

 542 

 177 

 734 

 159 

 29 

 5 

 522 

 1 

 0 

 1 

– 

– 

– 

 5 

– 

1 406 

15 244 

 98 % 

 183 

 918 

 100 % 

– 

 1 

– 

 3 

 159 

 100 % 

 29 

 98 % 

 5 

 100 % 

 530 

 98 % 

 167 

 169 

 95 % 

0 

 0 

 1 

– 

– 

– 

 6 

– 

 2 

0 

 488 

0 

 217 

 217 

 0 

– 

 1 

– 

 6 

 8 

 1 

– 

 1 

– 

 12 

 8 

176 

Total 

13=10+ 
11+12 

 1 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 1 

 14 

 34 

0 

 67 

 0 

– 

– 

– 

 0 

 (0) 

 0 

 0 

 0 

 (0) 

 0 

 0 

 0 

 0 

 0 

 1 

 10 

 24 

0 

 67 

 0 

– 

– 

– 

 0 

– 

 0 

 0 

 0 

 0 

 0 

 0 

– 

– 

– 

– 

 3 

 10 

0 

 0 

 0 

– 

– 

– 

 0 

– 

 0 

 0 

 0 

 0 

 (0) 

– 

 0 

– 

– 

– 

 1 

 0 

0 

– 

 (0) 

– 

– 

– 

 0 

 (0) 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Programme 

Total 
appropr. 
available 

Payments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2023 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

EUR million 

Appropriations lapsing 

from 
final 
adopted 
budge 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

5=2+ 
3+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

 167 

 61 

 9 

– 

 54 

 9 

– 

– 

– 

 1 

 7 

– 

 1 

 1 % 

 61 

 100 % 

 9 

 99 % 

– 

– 

– 

 166 

 166 

 0 

 0 

 0 

 0 

– 

– 

 0 

– 

– 

– 

59 271 

55 198 

 682 

2 396 

58 276 

98 % 

 493 

 401 

 894 

 91 

 11 

Loan facility under Just 
Transition Mechanism 

Decentralised agencies 

Pilot projects and prep. 
actions 
Total Heading 3: 
Natural Resources and 
Environment 
Asylum, Migration and 
Integration  

Pilot projects and prep. 
actions 
Border Mngmt. (IBMF) - 
Border mngmt and visa 
Border Mngmt. (IBMF) - 
Customs equipment 

Total Heading 4: 
Migration and Border 
Management 
Internal Security Fund 
(ISF) 
Nuclear 
decommissioning 
Nuclear Safety and 
decommissioning 

4 

5 

Decentralised agencies 

 186 

 148 

1 521 

1 449 

 25 

 5 

1 480 

 97 % 

Decentralised agencies 

1 008 

3 642 

3 292 

 26 

 49 

3 368 

92 % 

 0 

– 

 790 

 630 

 137 

 137 

 928 

 219 

 192 

 37 

 44 

 37 

 39 

– 

– 

 1 

 0 

– 

 18 

 166 

 89 % 

– 

– 

– 

 10 

 641 

 81 % 

– 

 137 

 100 % 

 16 

 944 

 94 % 

 1 

– 

 2 

– 

– 

– 

 1 

 1 

 2 

– 

 1 

 4 

– 

 0 

 4 

 8 

 196 

 89 % 

 37 

 100 % 

 41 

 94 % 

 221 

 98 % 

– 

– 

 18 

 87 % 

 163 

 99 % 

 364 

 100 % 

177 

Decentralised agencies 

 226 

 217 

Pilot projects and prep. 
actions 
Actions under 
prerogatives of 
Commission 
European Defence 
(Research) 
European Defence (Non 
Research) 

 0 

– 

 21 

 18 

 165 

 158 

 364 

 355 

 2 

– 

– 

 1 

 0 

– 

 3 

 1 

– 

 2 

– 

– 

– 

 1 

 1 

 4 

 8 

 0 

 6 

 8 

 0 

 133 

 134 

– 

 48 

 0 

 48 

 193 

 196 

 3 

– 

 0 

 6 

– 

 0 

– 

– 

 4 

– 

 2 

 6 

– 

 0 

 1 

 1 

 35 

 12 

– 

 15 

 0 

 16 

 78 

 19 

 0 

 0 

– 

 0 

 3 

 (0) 

 (0) 

 0 

– 

– 

 0 

– 

– 

 0 

 0 

– 

 0 

– 

– 

– 

 0 

 0 

Total 

13=10+ 
11+12 

– 

 0 

 0 

 102 

 36 

 12 

 0 

 15 

 0 

 16 

 78 

 19 

 0 

 1 

 0 

 0 

 3 

 0 

 0 

– 

 0 

– 

 0 

– 

 0 

 0 

– 

– 

 0 

 0 

– 

– 

– 

 0 

– 

– 

 0 

– 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Programme 

Total 
appropr. 
available 

Payments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2023 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

EUR million 

Appropriations lapsing 

from 
final 
adopted 
budge 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

5=2+ 
3+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

Military Mobility 

 115 

 114 

– 

– 

1 192 

1 130 

 1 

– 

 5 

– 

– 

 114 

 100 % 

– 

- 

 19 

1 154 

97 % 

 0 

– 

 6 

– 

– 

 9 

 0 

– 

 0 

– 

 15 

 23 

6 

Pilot projects and prep. 
actions 
Total Heading 5: 
Security and Defence 
Neighbourhood, 
Developm. and Intl. 
Cooperation 
Instrument for Nuclear 
Safety (EINS) 
Humanitarian Aid 
(HUMA) 
Common Foreign and 
Security Policy (CFSP) 
Overseas Countries and 
Territories (OCT) 

Other actions 

Pilot projects and prep. 
actions 
Actions under 
prerogatives of 
Commission 
Pre-Accession 
Assistance (IPA III) 
Pilot projects and prep. 
actions 
Total Heading 6: 
Neighbourhood and the 
World 

9 640 

8 275 

 977 

 149 

9 400 

 98 % 

 68 

 159 

 226 

 20 

 16 

 1 

 3 

 19 

 97 % 

2 467 

2 391 

 45 

 10 

2 446 

 99 % 

– 

 1 

 14 

 21 

 (0) 

 409 

 383 

 31 

 41 

 0 

 95 

 29 

 35 

 0 

 93 

2 200 

1 829 

0 

0 

 0 

 1 

– 

– 

– 

 8 

0 

 25 

 408 

 100 % 

– 

– 

– 

 30 

 96 % 

 35 

 84 % 

 0 

 66 % 

 0 

 93 

 98 % 

 1 

 7 

 0 

 1 

– 

– 

– 

 0 

– 

 1 

– 

 0 

 1 

 1 

 1 

– 

 0 

 253 

2 090 

 95 % 

 17 

 85 

 101 

0 

0 

- 

0 

0 

0 

 0 

 0 

 0 

 0 

 6 

 0 

 2 

 6 

0 

Total 

13=10+ 
11+12 

 0 

– 

 23 

 13 

 0 

 0 

 0 

 0 

 6 

 0 

 2 

 8 

0 

– 

– 

 0 

 13 

 0 

 0 

 0 

 0 

– 

– 

– 

 2 

0 

– 

– 

 0 

 0 

– 

– 

 0 

– 

– 

– 

– 

– 

0 

14 902 

13 049  1 032 

 440 

14 521 

97 % 

 93 

 258 

 352 

 13 

 16 

 0 

 30 

7 

Staff Pensions 

2 398 

2 162 

(Pensions former 
Members) EP 
(Pensions former 
Members) ECC 
(Pensions former 
Members) Commission 

 12 

 12 

 1 

 8 

 1 

 8 

(Pensions former 

 13 

 13 

– 

– 

– 

– 

– 

 236 

2 398 

 100 % 

– 

– 

– 

– 

 12 

 100 % 

 1 

 100 % 

 8 

 100 % 

 13 

 100 % 

178 

– 

– 

– 

– 

– 

 0 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 (0) 

 (0) 

– 

– 

– 

– 

– 

– 

– 

– 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Programme 

Total 
appropr. 
available 

Payments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2023 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

EUR million 

Appropriations lapsing 

from 
final 
adopted 
budge 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

5=2+ 
3+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

Members) CJEU 

(Pensions former 
Members) ECA 
(Pensions former 
Members) Ombudsman 
(Pensions former 
Members) EDPS 

 6 

 0 

 0 

 6 

 0 

 0 

European schools 

 242 

 215 

– 

– 

– 

 2 

– 

Remuneration statutory 
staff 
Remuneration external 
staff 
Members - Salaries and 
allowances 
Members - Temporary 
allowances 

Recruitment costs 

Termination of service 

Training costs 

Social and Mobility 

Information and comm. 
technology 

Rents and purchases 

Linked to buildings 

Security 

Mission and 
representation 
Meetings, committees, 
conference 

Official journal 

Publications 

Acquisition of 
information 

2 719 

2 629 

 371 

 210 

 35 

 17 

 2 

 35 

 9 

 36 

 64 

 525 

 356 

 215 

 111 

 65 

 20 

 3 

 24 

 6 

 15 

 2 

 28 

 9 

 8 

 13 

 1 

– 

 2 

– 

 11 

 12 

 129 

 160 

 289 

 71 

 38 

 38 

 5 

 2 

 8 

 3 

 18 

 49 

 30 

 4 

 1 

 1 

 7 

 2 

– 

– 

– 

 18 

 36 

 32 

 0 

– 

 0 

– 

 2 

 10 

 30 

 33 

 12 

 5 

 1 

 1 

– 

 2 

 0 

 6 

 100 % 

 0 

 100 % 

 0 

 100 % 

 236 

 97 % 

2 665 

 98 % 

– 

– 

– 

 0 

 0 

 277 

 75 % 

 42 

 16 

 90 % 

 2 

 100 % 

 30 

 87 % 

 9 

 100 % 

 20 

 35 

 57 % 

 55 % 

 0 

– 

 3 

– 

 9 

 9 

 319 

 61 % 

 126 

 340 

 95 % 

 132 

 62 % 

 73 

 66 % 

 44 

 67 % 

 7 

 2 

 36 % 

 84 % 

 17 

 68 % 

 4 

 71 % 

179 

 0 

 60 

 26 

 11 

 7 

 0 

 6 

 2 

– 

– 

– 

 6 

 55 

 39 

 0 

– 

 1 

– 

 4 

 19 

 76 

 16 

 21 

 11 

 2 

 2 

– 

 2 

 0 

– 

– 

– 

 6 

 55 

 81 

 0 

– 

 4 

– 

 13 

 27 

 202 

 16 

 81 

 36 

 13 

 9 

 0 

 8 

 2 

– 

– 

– 

 0 

 0 

 8 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 1 

– 

 0 

 0 

– 

– 

– 

– 

 0 

 4 

 1 

– 

 0 

– 

 2 

 2 

 4 

 0 

 2 

 1 

 8 

 3 

 0 

 0 

 0 

– 

– 

– 

 (0) 

– 

 0 

 (0) 

– 

– 

– 

 0 

 0 

 0 

– 

– 

– 

 0 

 0 

– 

 0 

– 

Total 

13=10+ 
11+12 

– 

– 

– 

 0 

 0 

 13 

 1 

 0 

 0 

 0 

 2 

 2 

 4 

 0 

 2 

 1 

 8 

 4 

 0 

 0 

 0 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Programme 

Total 
appropr. 
available 

Payments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2023 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

EUR million 

Appropriations lapsing 

from 
final 
adopted 
budge 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

5=2+ 
3+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

 8 

 44 

 76 

 38 

 0 

 1 

 6 

 27 

 12 

 0 

 4 

 12 

 4 

 7 

– 

– 

 3 

 5 

 63 % 

 22 

 49 % 

 31 

 63 

 82 % 

 8 

– 

 27 

 71 % 

 0 

 91 % 

 3 

 14 

 4 

 5 

– 

 0 

 8 

 9 

 6 

– 

 3 

 22 

 13 

 11 

– 

 0 

 0 

 0 

 0 

 0 

 0 

 1 

 0 

 1 

– 

5 724 

3 870 

 598 

 333 

4 801 

 84 % 

 596 

 208 

 805 

 40 

 76 

 0 

– 

 0 

 0 

– 

 3 

Total 

13=10+ 
11+12 

 0 

 1 

 1 

 1 

 0 

 119 

13 149 

9 832 

 959 

 792 

11 583 

88 % 

 923 

 485 

1 407 

 50 

 105 

 4 

 158 

6 705 

 124 

6 830 

– 

– 

– 

– 

– 

– 

 732 

 18 

 12 

 30 

 22 

– 

2 590 

1 253  1 291 

 21 

 52 

 72 

– 

 5 

– 

 21 

 52 

 72 

 0 % 

 42 % 

1 % 

– 

– 

– 

6 685 

6 685 

 72 

 72 

6 757 

6 757 

 30 

 4 % 

 700 

 28 

 94 % 

2 544 

 98 % 

 0 

 46 

 1 

 1 

– 

 702 

 2 

 46 

– 

– 

– 

– 

 0 

– 

3 351 

1 294  1 303 

 5 

2 602 

78 % 

 746 

 3 

 749 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

 0 

Studies and 
investigations 
General equipment, 
vehicle, furniture 
Linguistic external 
services 
Other administrative 
expenditure 
Pilot projects and prep. 
actions 
Administrative 
expenditure of Other 
Institutions 
Total Heading 7: 
European Public 
Administration 

O 

Innovation Fund (IF) 

S 

Other actions 

Total Heading O: 
Outside MFF 
Solidarity and 
Emergency Aid (SEAR) 
European Globalisation 
Adjustment (EGF) 
Brexit Adjustment 
Reserve 
Total Heading S: 
Solidarity mechanisms 
within and outside the 
Union (Special 
instruments) 

Total 

 445 
* This MFF programme includes the complementary financial envelope from the NextGenerationEU for the REACT-EU package. Please consult the chapter 1.1 Multiannual Financial 
Framework  2021-2027  of  the  Notes  to  the  Budgetary  Implementation  Reports.  The  paragraph  on  Heading  2  details  the  contribution  of  this  MFF  programme  to  the  REACT-EU 
package. 

261 370  167 321  4 163  71 837  243 321 

2 452  15 152  17 604 

93 % 

 287 

 151 

 7 

180 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.10.  DETAILED MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) 

Annual accounts of the European Union 2022 

Commitments outstanding at the end of previous year 

Commitments of the current year 

Programme 

Commitm. 
carried 
forward from 
previous 
year 

Decommitm./ 
Revaluations/ 
Cancellations 

Payments 

Commitm. 
outstanding 
at year-end 

Commitm. 
made during 
the year 

Payments 

Cancellation 
of commitm. 
which cannot 
be carried 
over 

Commitm. 
outstanding 
at year-end 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
the year 

1 

2 

3 

4=1+2+3 

5 

6 

7 

8=5+6+7 

9=4+8 

27 571 

 (385) 

(11 472) 

15 714 

15 309 

(3 362) 

1  Horizon Europe 

  Euratom 

Thermonuclear Experimental Reactor 
(ITER) 

  Other actions 

  Pilot projects and prep. actions 

InvestEU Fund 

  CEF - Transport 

  CEF - Energy 

  CEF - Digital 

  Digital Europe 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 

Actions under prerogatives of 
Commission 

  Single Market 

  EU Anti-Fraud 

  Taxation 

  Customs 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 

 317 

1 313 

 106 

 22 

4 053 

7 183 

3 904 

 436 

1 140 

 36 

0 

 52 

 41 

 950 

 33 

 33 

 122 

– 

 6 

 16 

 (24) 

 (103) 

 (0) 

 (8) 

 (1) 

 (518) 

 (44) 

 (8) 

 (30) 

(2 368) 

 (147) 

(1 956) 

 (68) 

 (5) 

 (0) 

– 

0 

 (1) 

 (2) 

 (640) 

 (133) 

 (523) 

 (36) 

0 

 (13) 

 (21) 

 191 

 795 

 54 

 13 

1 655 

5 079 

3 197 

 298 

 616 

– 

0 

 38 

 17 

 (54) 

 (418) 

 478 

 (0) 

 (1) 

 (3) 

– 

 (0) 

 (1) 

 (4) 

 (18) 

 (20) 

 (89) 

– 

 (4) 

 (7) 

 15 

 12 

 31 

– 

 2 

 8 

 296 

 726 

 61 

 17 

3 348 

1 801 

 801 

 249 

1 264 

 216 

0 

 7 

 25 

 709 

 25 

 38 

 134 

 123 

 10 

 17 

 (183) 

 (86) 

 (20) 

 (0) 

 (295) 

 (18) 

 (3) 

 (4) 

 (258) 

 (165) 

0 

 (2) 

 (3) 

 (5) 

 (8) 

 (24) 

 (123) 

 (5) 

 (0) 

 (9) 

 (0) 

 (1) 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

11 939 

27 653 

 112 

 639 

 41 

 17 

3 053 

1 783 

 798 

 245 

1 006 

 51 

0 

 5 

 22 

 303 

1 433 

 95 

 30 

4 708 

6 862 

3 994 

 543 

1 622 

 51 

0 

 43 

 39 

– 

– 

– 

– 

– 

– 

– 

 19 

 30 

 110 

 0 

 5 

 17 

 831 

 34 

 42 

 141 

 0 

 7 

 25 

1 439 

 (141) 

 (0) 

 567 

1 045 

  European Space Programme 

1 369 

 (757) 

 608 

2 086 

(1 254) 

181 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Commitments outstanding at the end of previous year 

Commitments of the current year 

Programme 

Commitm. 
carried 
forward from 
previous 
year 

Decommitm./ 
Revaluations/ 
Cancellations 

Payments 

Commitm. 
outstanding 
at year-end 

Commitm. 
made during 
the year 

Payments 

Cancellation 
of commitm. 
which cannot 
be carried 
over 

Commitm. 
outstanding 
at year-end 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
the year 

1 

2 

3 

4=1+2+3 

5 

6 

7 

8=5+6+7 

9=4+8 

  Decentralised agencies 

  Pilot projects & preparatory actions 

Total Heading 1: Single Market, 
Innovation and Digital 

2  Regional Development (ERDF) * 

  Cohesion Fund 

  Cohesion Fund contrib. to CEF-Transport 

  Pilot projects and prep. actions 

  European Social Fund Plus (ESF+) * 

  Support to Turkish-Cypriot Community 

  European Recovery and Resilience 

  Pericles IV 

  EU Recovery 

  RescEU 

  EU4Health 

Emergency support within the Union 
(ESI) 

  Decentralised agencies 

  Pilot projects and prep. actions 

Actions under prerogatives of 
Commission 

  Employment and Social Innovation 

  Erasmus+ 

  European Solidarity Corps (ESC) 

  Creative Europe 

Justice 

 15 

0 

48 717 

84 149 

18 402 

7 026 

 7 

43 257 

 117 

51 801 

 1 

 2 

 596 

 412 

 191 

 20 

 1 

 9 

 187 

1 765 

 148 

 400 

 75 

– 

0 

 (15) 

0 

– 

0 

 70 

0 

 (50) 

0 

– 

0 

 20 

0 

 20 

0 

 (733) 

(19 163) 

28 820 

27 330 

(6 011) 

 (10) 

21 309 

50 130 

 (86) 

 (16) 

 (29) 

 (1) 

(37 813) 

46 250 

44 355 

(4 645) 

(9 327) 

(1 844) 

 (2) 

9 059 

5 152 

 4 

6 822 

1 507 

 3 

 (682) 

 (11) 

– 

 (23) 

(16 996) 

26 238 

21 946 

(1 694) 

 (2) 

 (4) 

 (0) 

 (0) 

 (8) 

 (11) 

 (14) 

– 

 (0) 

 (0) 

 (12) 

 (37) 

 (3) 

 (12) 

 (13) 

 (40) 

 75 

 35 

 (3) 

(21 231) 

30 566 

136 515 

(26 045) 

 1 

– 

 425 

 293 

 43 

 20 

 0 

 1 

 102 

 840 

 109 

 173 

 41 

 1 

 74 

1 114 

 860 

 343 

 299 

– 

 13 

 90 

 (0) 

 (45) 

 (389) 

 (90) 

 (324) 

 (284) 

– 

 (4) 

 (18) 

3 617 

(2 587) 

 155 

 419 

 49 

 (98) 

 (109) 

 (27) 

 (0) 

 (2) 

 (164) 

 (108) 

 (135) 

– 

 (1) 

 (7) 

 (73) 

 (887) 

 (36) 

 (216) 

 (20) 

182 

 (0) 

 (0) 

– 

– 

 (0) 

 (0) 

– 

– 

– 

 (0) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

39 710 

6 140 

1 496 

 3 

85 960 

15 198 

6 648 

 6 

20 252 

46 489 

 32 

 107 

110 470 

141 037 

 0 

 29 

 725 

 770 

 19 

 15 

– 

 9 

 72 

1 030 

 57 

 310 

 22 

 1 

 29 

1 150 

1 063 

 62 

 35 

 0 

 10 

 174 

1 870 

 166 

 483 

 63 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Commitments outstanding at the end of previous year 

Commitments of the current year 

Programme 

Commitm. 
carried 
forward from 
previous 
year 

Decommitm./ 
Revaluations/ 
Cancellations 

Payments 

Commitm. 
outstanding 
at year-end 

Commitm. 
made during 
the year 

Payments 

Cancellation 
of commitm. 
which cannot 
be carried 
over 

Commitm. 
outstanding 
at year-end 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
the year 

  Rights and Values 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 

Actions under prerogatives of 
Commission 
Total Heading 2: Cohesion, Resilience and 
Values 

3  Agricultural Guarantees 

Other progr. of Natural Resources and 
Environment 

  Agricultural Fund for Rural Development 

  Maritime and Fisheries 

  Fisheries (SFPA and RFMO) 

  Decentralised agencies 

  Pilot projects and prep. actions 

  Environment and Climate (LIFE) 

Just Transition Fund 

Loan facility under Just Transition 
Mechanism 

  Decentralised agencies 

  Pilot projects and prep. actions 

Total Heading 3: Natural Resources and 
Environment 

4  Asylum, Migration and Integration  

  Decentralised agencies 

  Pilot projects and prep. actions 

Border Mngmt. (IBMF) - Border mngmt 
and visa 

1 

2 

3 

4=1+2+3 

5 

6 

7 

8=5+6+7 

9=4+8 

 156 

 33 

 10 

 83 

 187 

 (5) 

 (2) 

 (0) 

 (2) 

 (8) 

 (73) 

 (3) 

 (6) 

 (47) 

 (115) 

 78 

 28 

 4 

 34 

 63 

 216 

 247 

 9 

 35 

 184 

 (82) 

 (235) 

 (1) 

 (1) 

 (50) 

– 

– 

– 

– 

– 

 134 

 213 

 13 

 8 

 34 

 41 

 12 

 68 

 134 

 197 

209 033 

 (288) 

(89 146) 

119 599 

218 907 

(37 423) 

 (1) 

181 482 

301 081 

 334 

0 

38 215 

2 922 

 23 

– 

 9 

2 154 

 8 

– 

 3 

 24 

43 691 

2 363 

 20 

 0 

1 141 

 (6) 

0 

 (17) 

 (38) 

– 

– 

 (0) 

 (29) 

 (5) 

– 

– 

 (2) 

 (118) 

 210 

41 182 

(41 034) 

0 

0 

0 

0 

(14 599) 

23 598 

18 416 

 (849) 

 (14) 

– 

 (5) 

2 035 

 10 

– 

 4 

 (495) 

1 629 

 (1) 

– 

 (3) 

 (8) 

 1 

– 

 1 

 14 

1 206 

 159 

 29 

 1 

 758 

6 309 

 11 

 61 

 8 

 (645) 

 (68) 

 (145) 

 (29) 

– 

 (34) 

 (168) 

 (1) 

 (58) 

 (1) 

– 

0 

 (0) 

 (0) 

 147 

0 

 357 

0 

17 771 

41 369 

1 138 

3 173 

– 

– 

– 

– 

– 

– 

– 

– 

 14 

– 

 1 

 724 

6 142 

 10 

 3 

 7 

 24 

– 

 5 

2 353 

6 143 

 10 

 3 

 21 

 (98) 

(16 091) 

27 502 

68 142 

(42 185) 

 (0) 

25 957 

53 459 

 (19) 

 (20) 

 (0) 

 (11) 

 (861) 

1 482 

– 

– 

– 

– 

1 401 

 184 

– 

 (618) 

 (166) 

– 

 (313) 

 817 

 756 

 (329) 

– 

– 

– 

– 

 783 

 18 

– 

 427 

2 265 

 18 

– 

1 244 

183 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Commitments outstanding at the end of previous year 

Commitments of the current year 

Programme 

Commitm. 
carried 
forward from 
previous 
year 

Decommitm./ 
Revaluations/ 
Cancellations 

Payments 

Commitm. 
outstanding 
at year-end 

Commitm. 
made during 
the year 

Payments 

Cancellation 
of commitm. 
which cannot 
be carried 
over 

Commitm. 
outstanding 
at year-end 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
the year 

1 

2 

3 

4=1+2+3 

5 

6 

7 

8=5+6+7 

9=4+8 

Border Mngmt. (IBMF) - Customs 
equipment 

  Decentralised agencies 

Total Heading 4: Migration and Border 
Management 

5  Internal Security Fund (ISF) 

  Nuclear decommissioning 

  Nuclear Safety and decommissioning 

  Decentralised agencies 

  Pilot projects and prep. actions 

Actions under prerogatives of 
Commission 

  European Defence (Research) 

  European Defence (Non Research) 

  Military Mobility 

  Pilot projects and prep. actions 

 135 

 321 

3 980 

 360 

 377 

 315 

 0 

 1 

 24 

 329 

 762 

 226 

 2 

– 

 (0) 

 (50) 

 (16) 

– 

 (2) 

 (0) 

– 

 (2) 

 (0) 

 (1) 

– 

– 

 (63) 

 (227) 

 72 

 94 

 138 

 967 

 (73) 

 (717) 

(1 464) 

2 465 

3 446 

(1 903) 

 (124) 

 (37) 

 (35) 

– 

– 

 (12) 

 (159) 

 (290) 

 (113) 

– 

 221 

 340 

 278 

– 

 1 

 10 

 170 

 472 

 113 

 2 

 255 

 99 

 44 

 (72) 

– 

 (6) 

 221 

 (221) 

– 

 22 

 326 

 642 

 232 

– 

– 

 (7) 

 (4) 

 (74) 

 (1) 

– 

  Total Heading 5: Security and Defence 

2 397 

 (21) 

 (769) 

1 607 

1 840 

 (385) 

6 

Neighbourhood, Developm. and Intl. 
Cooperation 

Instrument for Nuclear Safety (EINS) 

  Humanitarian Aid (HUMA) 

Common Foreign and Security Policy 
(CFSP) 

  Overseas Countries and Territories (OCT) 

  Other actions 

  Pilot projects and prep. actions 

Actions under prerogatives of 
Commission 

  Pre-Accession Assistance (IPA III) 

23 453 

(1 023) 

(6 082) 

16 349 

14 598 

(3 319) 

 128 

1 084 

 178 

 65 

 0 

 2 

 154 

7 471 

 (8) 

 (7) 

 (20) 

 (0) 

 (0) 

 (0) 

 (8) 

 (17) 

 (655) 

 (79) 

 (29) 

– 

 (0) 

 (67) 

 103 

 422 

 79 

 36 

 0 

 1 

 79 

 41 

 (2) 

2 497 

(1 791) 

 387 

 (329) 

 72 

 50 

– 

 95 

 (1) 

 (35) 

– 

 (26) 

 (139) 

(1 773) 

5 559 

2 413 

 (318) 

184 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 (0) 

– 

– 

– 

 (0) 

 (0) 

– 

 (0) 

– 

– 

– 

– 

– 

– 

 65 

 250 

 137 

 344 

1 543 

4 008 

 183 

 99 

 38 

– 

– 

 15 

 321 

 568 

 230 

– 

 403 

 439 

 316 

– 

 1 

 25 

 492 

1 040 

 343 

 2 

1 455 

3 061 

11 279 

27 629 

 39 

 706 

 58 

 71 

 15 

– 

 69 

 142 

1 128 

 136 

 107 

 16 

 1 

 148 

2 096 

7 655 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Commitments outstanding at the end of previous year 

Commitments of the current year 

Programme 

Commitm. 
carried 
forward from 
previous 
year 

Decommitm./ 
Revaluations/ 
Cancellations 

Payments 

Commitm. 
outstanding 
at year-end 

Commitm. 
made during 
the year 

Payments 

Cancellation 
of commitm. 
which cannot 
be carried 
over 

Commitm. 
outstanding 
at year-end 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
the year 

  Pilot projects and prep. actions 

0 

0 

0 

0 

0 

0 

0 

0 

0 

1 

2 

3 

4=1+2+3 

5 

6 

7 

8=5+6+7 

9=4+8 

Total Heading 6: Neighbourhood and the 
World 

7  Staff Pensions 

(Pensions former Members) EP 

(Pensions former Members) ECC 

(Pensions former Members) Commission 

(Pensions former Members) CJEU 

(Pensions former Members) ECA 

(Pensions former Members) Ombudsman 

(Pensions former Members) EDPS 

  European schools 

  Remuneration statutory staff 

  Remuneration external staff 

  Members - Salaries and allowances 

  Members - Temporary allowances 

  Recruitment costs 

  Termination of service 

  Training costs 

  Social and Mobility 

Information and comm. technology 

  Rents and purchases 

Linked to buildings 

  Security 

  Mission and representation 

32 535 

(1 205) 

(8 701) 

22 629 

20 153 

(5 820) 

 (0) 

14 333 

36 962 

– 

– 

– 

– 

– 

– 

– 

– 

 2 

 0 

 39 

 2 

– 

 2 

– 

 12 

 15 

 163 

 18 

 51 

 32 

 12 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 (0) 

 (4) 

 (1) 

– 

 (0) 

– 

 (2) 

 (3) 

 (4) 

 (0) 

 (2) 

 (1) 

 (8) 

– 

– 

– 

– 

– 

– 

– 

– 

 (2) 

– 

 (35) 

 (1) 

– 

 (2) 

– 

 (11) 

 (13) 

 (160) 

 (18) 

 (49) 

 (30) 

 (4) 

185 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

– 

– 

– 

2 398 

(2 398) 

 12 

 1 

 8 

 13 

 6 

 0 

 0 

 (12) 

 (1) 

 (8) 

 (13) 

 (6) 

 (0) 

 (0) 

 235 

 (234) 

2 665 

(2 665) 

 286 

 (242) 

 15 

 2 

 32 

 9 

 21 

 39 

 314 

 323 

 152 

 76 

 51 

 (15) 

 (2) 

 (28) 

 (9) 

 (10) 

 (23) 

 (159) 

 (321) 

 (83) 

 (43) 

 (40) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 (0) 

 (0) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

 1 

 0 

 43 

 0 

– 

 4 

– 

 11 

 16 

 155 

 2 

 69 

 33 

 11 

 0 

– 

– 

– 

– 

– 

– 

– 

 1 

 0 

 43 

 0 

– 

 4 

– 

 11 

 16 

 155 

 2 

 69 

 33 

 11 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Commitments outstanding at the end of previous year 

Commitments of the current year 

Programme 

Commitm. 
carried 
forward from 
previous 
year 

Decommitm./ 
Revaluations/ 
Cancellations 

Payments 

Commitm. 
outstanding 
at year-end 

Commitm. 
made during 
the year 

Payments 

Cancellation 
of commitm. 
which cannot 
be carried 
over 

Commitm. 
outstanding 
at year-end 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
the year 

1 

2 

3 

4=1+2+3 

5 

6 

7 

8=5+6+7 

9=4+8 

  Meetings, committees, conference 

  Official journal 

  Publications 

  Acquisition of information 

  Studies and investigations 

  General equipment, vehicle, furniture 

Linguistic external services 

  Other administrative expenditure 

  Pilot projects and prep. actions 

Administrative expenditure of Other 
Institutions 
Total Heading 7: European Public 
Administration 

O  Innovation Fund (IF) 

  Other actions 

  Total Heading O: Outside MFF 

S  Solidarity and Emergency Aid (SEAR) 

  European Globalisation Adjustment (EGF) 

  Brexit Adjustment Reserve 

Total Heading S: Solidarity mechanisms 
within and outside the Union (Special 
instruments) 

 4 

 1 

 7 

 2 

 4 

 13 

 4 

 8 

 0 

 (3) 

 (0) 

 (0) 

 (0) 

 (0) 

 (1) 

 (0) 

 (1) 

 (0) 

 (1) 

 (1) 

 (7) 

 (2) 

 (4) 

 (12) 

 (4) 

 (7) 

 (0) 

 684 

 (86) 

 (598) 

1 076 

 (116) 

 (960) 

 138 

 8 

 147 

– 

– 

– 

– 

 (3) 

 (7) 

 (9) 

– 

– 

– 

– 

 (10) 

 (0) 

 (11) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

 0 

 125 

 2 

 127 

– 

– 

– 

– 

 13 

 2 

 16 

 4 

 3 

 25 

 64 

 28 

– 

 (6) 

 (2) 

 (9) 

 (3) 

 (1) 

 (10) 

 (59) 

 (20) 

– 

4 850 

(4 203) 

11 664 

(10 623) 

2 953 

 53 

3 006 

 30 

 28 

 (10) 

 (52) 

 (62) 

 (30) 

 (28) 

2 544 

(2 544) 

2 602 

(2 602) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 7 

 7 

– 

– 

– 

– 

– 

– 

– 

 7 

 0 

 7 

 2 

 3 

 15 

 5 

 8 

– 

 7 

 0 

 7 

 2 

 3 

 15 

 5 

 8 

 0 

 654 

 654 

1 048 

2 943 

 1 

1 048 

3 068 

 3 

2 944 

3 071 

– 

 0 

– 

 0 

– 

 0 

– 

 0 

  Total 
452 821 
* This MFF programme includes the complementary financial envelope from the NextGenerationEU for the REACT-EU package. Please consult the chapter 1.1 Multiannual Financial 
Framework  2021-2027  of  the  Notes  to  the  Budgetary  Implementation  Reports.  The  paragraph  on  Heading  2  details  the  contribution  of  this  MFF  programme  to  the  REACT-EU 
package. 

(136 306) 

(107 015) 

357 091 

250 071 

341 575 

202 749 

(2 520) 

 (4) 

186 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.11.  DETAILED MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN 

Annual accounts of the European Union 2022 

Programme 

<2016 

2016 

2017 

2018 

2019 

2020 

2021 

2022 

Total 

EUR million 

 388 

 716 

1 267 

2 475 

4 668 

5 814 

11 941 

27 653 

1  Horizon Europe 

  Euratom 

  Thermonuclear Experimental Reactor (ITER) 

  Other actions 

  Pilot projects and prep. actions 

InvestEU Fund 

  CEF - Transport 

  CEF - Energy 

  CEF - Digital 

  Digital Europe 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 

  Actions under prerogatives of Commission 

  Single Market 

  EU Anti-Fraud 

  Taxation 

  Customs 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 

  European Space Programme 

  Decentralised agencies 

  Pilot projects & preparatory actions 

  Total Heading 1: Single Market, Innovation and Digital 

2  Regional Development (ERDF) 

  Cohesion Fund 

  Cohesion Fund contrib. to CEF-Transport 

  Pilot projects and prep. actions 

  European Social Fund Plus (ESF+) 

  Support to Turkish-Cypriot Community 

  European Recovery and Resilience 

 384 

 24 

– 

 0 

– 

 155 

 6 

 35 

 2 

– 

– 

0 

– 

– 

 28 

 0 

– 

– 

– 

– 

– 

– 

– 

0 

 634 

1 204 

 167 

 293 

– 

 458 

 3 

– 

 3 

– 

– 

– 

 98 

 109 

 3 

 2 

– 

– 

0 

– 

– 

 2 

– 

 1 

 0 

 131 

 99 

 390 

 5 

 0 

– 

0 

– 

– 

 22 

– 

 6 

 1 

 111 

 308 

 270 

 24 

 0 

– 

0 

 0 

 0 

 32 

– 

 10 

 3 

 157 

1 664 

 890 

 23 

 0 

– 

0 

 2 

 1 

 10 

 20 

 25 

 65 

– 

– 

– 

– 

– 

– 

– 

– 

0 

 0 

– 

 0 

– 

– 

 0 

 1 

– 

0 

 612 

 17 

– 

 355 

– 

1 364 

3 059 

1 046 

 577 

 0 

 1 

 0 

 0 

– 

– 

 0 

 37 

– 

0 

2 072 

4 663 

1 594 

 598 

 1 

 1 

 0 

 0 

– 

– 

 1 

– 

0 

5 400 

8 258 

2 598 

1 234 

– 

 74 

 296 

 13 

 2 

 241 

1 975 

1 057 

 34 

 0 

– 

0 

 22 

 2 

 96 

 5 

 2 

 2 

– 

– 

 4 

– 

0 

 34 

 498 

 24 

 8 

 762 

 918 

 552 

 208 

 615 

– 

0 

 14 

 14 

 217 

 8 

 10 

 28 

– 

 2 

 3 

 94 

– 

0 

 112 

 639 

 41 

 17 

3 053 

1 783 

 798 

 245 

1 006 

 51 

0 

 5 

 22 

 585 

 19 

 30 

 110 

 0 

 5 

 17 

 831 

 20 

0 

 74 

 402 

8 895 

9 823 

21 329 

14 118 

14 931 

39 710 

2 451 

1 600 

 2 

1 203 

 495 

 1 

6 140 

1 496 

 3 

 303 

1 433 

 95 

 30 

4 708 

6 862 

3 994 

 543 

1 622 

 51 

0 

 43 

 39 

1 045 

 34 

 42 

 141 

 0 

 7 

 25 

1 439 

 20 

0 

50 130 

85 960 

15 198 

6 648 

 6 

 135 

1 356 

2 060 

3 147 

6 355 

12 725 

20 252 

46 489 

 2 

 0 

 3 

 0 

 11 

 3 

 16 

 9 

 24 

 32 

 107 

30 554  110 470 

141 037 

 14 

– 

187 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Programme 

<2016 

2016 

2017 

2018 

2019 

2020 

2021 

2022 

Total 

EUR million 

  Pericles IV 

  EU Recovery 

  RescEU 

  EU4Health 

  Emergency support within the Union (ESI) 

  Decentralised agencies 

  Pilot projects and prep. actions 

  Actions under prerogatives of Commission 

  Employment and Social Innovation 

  Erasmus+ 

  European Solidarity Corps (ESC) 

  Creative Europe 

Justice 

  Rights and Values 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 

  Actions under prerogatives of Commission 

– 

– 

– 

 0 

– 

– 

– 

– 

 1 

 0 

 2 

– 

 0 

– 

– 

 0 

– 

 1 

– 

– 

 0 

 0 

– 

– 

 0 

– 

 1 

 1 

– 

– 

– 

 4 

– 

– 

 0 

 0 

– 

– 

 1 

 2 

– 

 1 

– 

– 

 2 

 1 

 0 

 0 

 7 

 5 

– 

– 

– 

 1 

– 

– 

 2 

 6 

– 

 4 

– 

– 

 3 

 34 

 8 

 5 

 5 

 5 

– 

 0 

 1 

 3 

 0 

– 

 16 

 15 

– 

 1 

– 

 0 

 19 

 121 

 31 

 13 

 6 

 9 

– 

 0 

 5 

 7 

 0 

– 

 191 

 22 

 20 

 4 

– 

 0 

 26 

 312 

 36 

 43 

 8 

 21 

 1 

 1 

 13 

 18 

 0 

– 

 215 

 218 

 22 

 9 

– 

 1 

 50 

 0 

 29 

 725 

 799 

 19 

 15 

– 

 9 

 72 

 372 

1 030 

 31 

 111 

 15 

 33 

 27 

 3 

 15 

 34 

 57 

 310 

 22 

 134 

 13 

 8 

 34 

 134 

 1 

 29 

1 150 

1 063 

 62 

 35 

 0 

 10 

 174 

1 870 

 166 

 483 

 63 

 213 

 41 

 12 

 68 

 197 

  Total Heading 2: Cohesion, Resilience and Values 

2 129 

 528 

6 063 

8 997 

15 494 

25 268 

61 090  181 512 

301 081 

3  Agricultural Guarantees 

  Other progr. of Natural Resources and Environment 

  Agricultural Fund for Rural Development 

  Maritime and Fisheries 

  Fisheries (SFPA and RFMO) 

  Decentralised agencies 

  Pilot projects and prep. actions 

  Environment and Climate (LIFE) 

Just Transition Fund 

Loan facility under Just Transition Mechanism 

  Decentralised agencies 

  Pilot projects and prep. actions 

 96 

 58 

 96 

 300 

 270 

 326 

 484 

– 

0 

– 

0 

1 332 

1 042 

 56 

– 

– 

– 

 1 

– 

– 

– 

– 

0 

 783 

 137 

 1 

– 

– 

 16 

0 

 784 

 174 

– 

– 

 1 

 39 

0 

1 388 

 650 

– 

– 

 2 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

– 

 0 

– 

– 

– 

 1 

1 275 

 135 

– 

– 

– 

– 

– 

 0 

2 349 

 316 

– 

– 

 59 

0 

 96 

0 

 147 

0 

5 383 

12 887 

17 771 

 856 

 163 

1 138 

 2 

– 

 1 

 7 

– 

– 

– 

– 

– 

 11 

 1 

– 

 1 

 2 

 14 

– 

 1 

 724 

6 142 

 10 

 3 

 7 

6 638 

13 640 

25 957 

 645 

 272 

 783 

– 

– 

– 

– 

 18 

– 

 357 

0 

41 369 

3 173 

 24 

– 

 5 

2 353 

6 143 

 10 

 3 

 21 

53 459 

2 265 

 18 

– 

  Total Heading 3: Natural Resources and Environment 

1 484 

1 100 

1 017 

4  Asylum, Migration and Integration  

  Decentralised agencies 

  Pilot projects and prep. actions 

 98 

– 

– 

– 

– 

– 

 17 

– 

– 

188 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Programme 

<2016 

2016 

2017 

2018 

2019 

2020 

2021 

2022 

Total 

EUR million 

  Border Mngmt. (IBMF) - Border mngmt and visa 

  Border Mngmt. (IBMF) - Customs equipment 

  Decentralised agencies 

  Total Heading 4: Migration and Border Management 

5  Internal Security Fund (ISF) 

  Nuclear decommissioning 

  Nuclear Safety and decommissioning 

  Decentralised agencies 

  Pilot projects and prep. actions 

  Actions under prerogatives of Commission 

  European Defence (Research) 

  European Defence (Non Research) 

  Military Mobility 

  Pilot projects and prep. actions 

  Total Heading 5: Security and Defence 

6  Neighbourhood, Developm. and Intl. Cooperation 

Instrument for Nuclear Safety (EINS) 

  Humanitarian Aid (HUMA) 

  Common Foreign and Security Policy (CFSP) 

  Overseas Countries and Territories (OCT) 

  Other actions 

  Pilot projects and prep. actions 

  Actions under prerogatives of Commission 

  Pre-Accession Assistance (IPA III) 

  Pilot projects and prep. actions 

  Total Heading 6: Neighbourhood and the World 

7  Staff Pensions 

(Pensions former Members) EP 

(Pensions former Members) ECC 

(Pensions former Members) Commission 

(Pensions former Members) CJEU 

(Pensions former Members) ECA 

(Pensions former Members) Ombudsman 

(Pensions former Members) EDPS 

  European schools 

 28 

 803 

 9 

 589 

 111 

1 010 

 17 

– 

– 

 17 

 1 

 2 

 25 

– 

– 

 0 

– 

– 

– 

– 

 2 

 0 

– 

– 

– 

 1 

 0 

 346 

0 

1 152 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 9 

– 

– 

 8 

– 

– 

 36 

– 

– 

 243 

 381 

– 

– 

– 

– 

 124 

 72 

 94 

 427 

 65 

 250 

 26 

 105 

 170 

 559 

1 025 

 562 

1 543 

 1 

 8 

 1 

– 

– 

 0 

– 

– 

– 

– 

 20 

 63 

 27 

– 

– 

 0 

– 

– 

– 

– 

 3 

 0 

 0 

– 

– 

 0 

– 

 8 

 0 

 2 

– 

– 

 0 

 1 

 25 

 64 

 44 

– 

– 

 0 

– 

– 

– 

 0 

 134 

1 757 

 19 

 1 

 2 

– 

– 

 0 

 1 

 47 

 64 

 49 

– 

– 

 0 

– 

 42 

– 

 1 

 95 

 66 

 85 

– 

 1 

 2 

– 

 71 

– 

– 

 32 

 73 

 48 

– 

– 

 6 

 170 

 359 

 113 

– 

 183 

 99 

 38 

– 

– 

 15 

 321 

 568 

 230 

– 

 204 

2 325 

 320 

3 356 

 801 

1 455 

6 509 

11 279 

 16 

 26 

 18 

 3 

– 

 0 

 7 

 25 

 55 

 24 

– 

– 

– 

 25 

 968 

0 

 30 

 341 

 33 

 33 

 0 

– 

 44 

 39 

 706 

 58 

 71 

 15 

– 

 69 

1 421 

2 096 

0 

0 

1 244 

 137 

 344 

4 008 

 403 

 439 

 316 

– 

 1 

 25 

 492 

1 040 

 343 

 2 

3 061 

27 629 

 142 

1 128 

 136 

 107 

 16 

 1 

 148 

7 655 

0 

 222 

0 

 343 

0 

 712 

1 549 

0 

0 

 814 

1 365 

2 492 

3 943 

4 452 

8 411 

14 333 

36 962 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

 1 

 0 

– 

– 

– 

– 

– 

– 

– 

 1 

– 

– 

– 

– 

– 

– 

– 

– 

– 

189 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Programme 

<2016 

2016 

2017 

2018 

2019 

2020 

2021 

2022 

Total 

EUR million 

  Remuneration statutory staff 

  Remuneration external staff 

  Members - Salaries and allowances 

  Members - Temporary allowances 

  Recruitment costs 

  Termination of service 

  Training costs 

  Social and Mobility 

Information and comm. technology 

  Rents and purchases 

Linked to buildings 

  Security 

  Mission and representation 

  Meetings, committees, conference 

  Official journal 

  Publications 

  Acquisition of information 

  Studies and investigations 

  General equipment, vehicle, furniture 

Linguistic external services 

  Other administrative expenditure 

  Pilot projects and prep. actions 

  Administrative expenditure of Other Institutions 

  Total Heading 7: European Public Administration 

O  Innovation Fund (IF) 

  Other actions 

  Total Heading O: Outside MFF 

S  Solidarity and Emergency Aid (SEAR) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

0 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

 0 

 0 

– 

  European Globalisation Adjustment (EGF) 
  Brexit Adjustment Reserve 
  Total Heading S: Solidarity mechanisms within and outside the 
  Total 

Union (Special instruments) 

– 
– 
– 
5 445 

– 
– 
– 
3 090 

– 
– 
– 
10 025 

– 
– 
– 
15 140 

– 
– 
– 
27 949 

– 
– 
– 
46 599 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

 0 

 125 

 2 

 0 

 43 

 0 

– 

 4 

– 

 11 

 16 

 155 

 2 

 69 

 33 

 11 

 7 

 0 

 7 

 2 

 3 

 15 

 5 

 8 

– 

 654 

1 048 

2 943 

 1 

 127 

2 944 

– 

– 

– 
– 
– 

 0 
– 
 0 
94 453  250 120 

 0 

 43 

 0 

– 

 4 

– 

 11 

 16 

 155 

 2 

 69 

 33 

 11 

 7 

 0 

 7 

 2 

 3 

 15 

 5 

 8 

 0 

 654 

1 048 

3 068 

 3 

3 071 

– 

 0 
– 
 0 
452 821 

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

190 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.12.  DETAILED MFF: OUTSTANDING COMMITMENTS BY APPROPRIATIONS TYPE 

Annual accounts of the European Union 2022 

From budget appropriations 

From assigned revenue appropriations 

Commitm. 
carried 
forward 
from 2021 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

22 848 

 (325) 

12 469 

12 020 

Amount 
remaining 
to be 
settled 
5=1+2+3-
4 
22 971 

Commitm. 
carried 
forward 
from 2021 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

6 

7 

8 

9 

Amount 
remaining 
to be 
settled 
10=6+7+
8-9 

2 840 

2 814 

4 681 

27 653 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
2022 

11=5+10 

Heading 

1  Horizon Europe 

  Euratom 

Thermonuclear Experimental 
Reactor (ITER) 

  Other actions 

  Pilot projects and prep. actions 

InvestEU Fund 

  CEF - Transport 

  CEF - Energy 

  CEF - Digital 

  Digital Europe 

  Decentralised agencies 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 
  Single Market 

  EU Anti-Fraud 

  Taxation 

  Customs 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 

  European Space Programme 

  Decentralised agencies 

Total Heading 1: Single Market, 
Innovation and Digital 

 261 

 (12) 

1 268 

0 

 22 

2 006 

7 050 

3 852 

 433 

1 109 

 36 

 52 

 36 

 (1) 

0 

 (1) 

 (28) 

 (142) 

 (66) 

 (5) 

 (0) 

– 

 (1) 

 (2) 

 924 

 (53) 

 33 

 31 

 121 

– 

 6 

 16 

1 222 

 15 

 (0) 

 (1) 

 (3) 

– 

 (0) 

 (1) 

 (1) 

– 

 270 

 710 

– 

 17 

1 197 

1 799 

 797 

 249 

1 233 

 206 

 7 

 22 

 688 

 24 

 37 

 130 

 116 

 10 

 17 

 273 

 544 

– 

 8 

 850 

1 920 

 639 

 136 

 750 

 192 

 14 

 22 

 245 

1 433 

– 

 30 

2 325 

6 787 

3 944 

 541 

1 592 

 49 

 43 

 34 

4 723 

 57 

 45 

 106 

0 

2 048 

 132 

 52 

 3 

 30 

– 

0 

 5 

 542 

1 017 

 26 

 23 

 27 

 111 

 116 

 9 

 7 

 34 

 40 

 137 

– 

 7 

 25 

 0 

 2 

 1 

– 

 0 

0 

2 008 

1 961 

1 268 

 68 

 65 

 18 

 147 

– 

 (68) 

 (11) 

– 

 (8) 

0 

 (2) 

 (5) 

 (1) 

 (0) 

 (0) 

– 

0 

 (0) 

 (1) 

– 

 (0) 

 (0) 

– 

 (0) 

0 

 (2) 

– 

 26 

 16 

 61 

0 

 12 

 60 

 64 

0 

 59 

 0 

 95 

0 

2 151 

1 813 

2 383 

 2 

 4 

– 

 31 

 10 

0 

 3 

 21 

 0 

 1 

 4 

 7 

 0 

0 

 77 

 2 

 54 

 5 

 1 

 32 

 8 

0 

 3 

 75 

 50 

 2 

 30 

 1 

0 

 5 

 0 

 1 

 2 

 7 

 0 

0 

 50 

 0 

 0 

 2 

 3 

 0 

– 

0 

 172 

 2 

 18 

 28 

1 045 

 303 

1 433 

 95 

 30 

4 708 

6 862 

3 994 

 543 

1 622 

 51 

 43 

 39 

 34 

 42 

 141 

 0 

 7 

 25 

1 439 

 20 

50 130 

85 960 

41 340 

 (643) 

22 073 

20 229 

42 541 

7 377 

 (100) 

5 257 

4 945 

7 588 

2  Regional Development (ERDF) 

49 100 

 (74) 

36 556 

31 267 

54 315 

35 049 

 (13) 

7 799 

11 192 

31 644 

191 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

From budget appropriations 

From assigned revenue appropriations 

Heading 

Commitm. 
carried 
forward 
from 2021 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

  Cohesion Fund 

Cohesion Fund contrib. to CEF-
Transport 

  Pilot projects and prep. actions 

13 421 

7 023 

 7 

 (16) 

 (29) 

 (1) 

6 220 

9 495 

1 494 

1 854 

6 634 

 3 

 2 

 6 

4 981 

 3 

0 

  European Social Fund Plus (ESF+) 

21 930 

 (23) 

15 886 

14 936 

22 858 

21 326 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
2022 

11=5+10 

Amount 
remaining 
to be 
settled 
5=1+2+3-
4 
10 130 

Commitm. 
carried 
forward 
from 2021 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

6 

7 

8 

9 

Amount 
remaining 
to be 
settled 
10=6+7+
8-9 

 (0) 

 (0) 

0 

 (0) 

 (0) 

 601 

 514 

5 068 

15 198 

 12 

0 

 1 

0 

 14 

0 

6 648 

 6 

6 060 

3 755 

23 631 

46 489 

 1 

 2 

 3 

 107 

 104 

 4 

 160 

51 660 

 (1) 

136 396 

47 178 

140 877 

141 037 

Support to Turkish-Cypriot 
Community 

  European Recovery and Resilience 

  Pericles IV 

  EU Recovery 

  RescEU 

  EU4Health 

Emergency support within the 
Union (ESI) 

  Decentralised agencies 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 

  Employment and Social Innovation 

  Erasmus+ 

  European Solidarity Corps (ESC) 

  Creative Europe 

Justice 

  Rights and Values 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 
Total Heading 2: Cohesion, 
Resilience and Values 

 113 

 141 

 1 

 2 

 432 

 402 

 191 

 19 

 1 

 9 

 180 

1 526 

 144 

 386 

 74 

 156 

 31 

 10 

 83 

 186 

 (2) 

 (3) 

 (0) 

 (0) 

 (5) 

 (10) 

 (14) 

– 

 (0) 

 (0) 

 (12) 

 (29) 

 (3) 

 (11) 

 (13) 

 (5) 

 (1) 

 (0) 

 (2) 

 (8) 

 34 

 119 

 1 

 74 

 354 

 839 

– 

 284 

– 

 13 

 86 

 40 

 97 

 1 

 47 

 225 

 192 

 135 

 269 

 1 

 11 

 87 

3 406 

3 257 

 141 

 407 

 44 

 215 

 245 

 8 

 35 

 133 

 313 

 44 

 154 

 235 

 7 

 48 

 1 

 29 

 557 

1 039 

 43 

 34 

 0 

 10 

 167 

1 646 

 149 

 469 

 60 

 212 

 40 

 11 

 68 

 181 

 165 

 194 

 0 

– 

 164 

 10 

 0 

 0 

0 

 0 

 7 

 239 

 4 

 14 

 0 

 1 

 1 

 0 

 0 

 1 

– 

– 

 (3) 

 (1) 

– 

– 

0 

 (0) 

 (0) 

 (8) 

 (0) 

 (1) 

 (0) 

 (0) 

 (1) 

 (0) 

– 

 (0) 

 0 

 0 

 760 

 21 

 343 

 15 

0 

– 

 3 

 0 

 0 

 328 

 6 

 324 

 15 

0 

 0 

 4 

 0 

 0 

 593 

 24 

 19 

 0 

0 

– 

 6 

 211 

 217 

 225 

 13 

 13 

 6 

 1 

 3 

 1 

– 

 3 

 1 

 12 

 3 

 1 

 3 

 0 

– 

 0 

 16 

 14 

 3 

 1 

 0 

 1 

 0 

 3 

 1 

 29 

1 150 

1 063 

 62 

 35 

 0 

 10 

 174 

1 870 

 166 

 483 

 63 

 213 

 41 

 12 

 68 

 197 

95 569 

 (263) 

66 644 

63 014 

98 937 

113 465 

 (27) 

152 263 

63 556 

202 144 

301 081 

192 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Heading 

From budget appropriations 

From assigned revenue appropriations 

Commitm. 
carried 
forward 
from 2021 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

Amount 
remaining 
to be 
settled 
5=1+2+3-
4 

Commitm. 
carried 
forward 
from 2021 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

6 

7 

8 

9 

Amount 
remaining 
to be 
settled 
10=6+7+
8-9 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
2022 

11=5+10 

3  Agricultural Guarantees 

 334 

 (6) 

40 552 

40 523 

 357 

– 

Agricultural Fund for Rural 
Development 

35 914 

 (17) 

12 728 

14 000 

34 625 

2 300 

– 

– 

 629 

 629 

 0 

 357 

5 689 

1 244 

6 745 

41 369 

2 573 

 525 

 (0) 

 75 

 600 

3 173 

  Maritime and Fisheries 

2 397 

 (38) 

  Fisheries (SFPA and RFMO) 

  Decentralised agencies 

  Pilot projects and prep. actions 

 23 

– 

 9 

  Environment and Climate (LIFE) 

2 148 

Just Transition Fund 
Loan facility under Just Transition 
Mechanism 

  Decentralised agencies 

 3 

0 

 3 

– 

– 

 (0) 

 (29) 

 (1) 

0 

– 

  Pilot projects and prep. actions 

 24 

 (2) 

1 131 

 159 

 29 

 1 

 755 

1 327 

– 

 54 

 8 

 917 

 159 

 29 

 5 

 528 

 1 

– 

 54 

 9 

 24 

– 

 5 

2 347 

1 327 

– 

 3 

 21 

0 

– 

0 

 6 

 5 

– 

 0 

0 

Total Heading 3: Natural Resources 
and Environment 

40 854 

 (93) 

56 746 

56 225 

41 281 

2 837 

4  Asylum, Migration and Integration  

2 335 

  Decentralised agencies 

  Pilot projects and prep. actions 
Border Mngmt. (IBMF) - Border 
mngmt and visa 
Border Mngmt. (IBMF) - Customs 
equipment 

  Decentralised agencies 

Total Heading 4: Migration and 
Border Management 

5  Internal Security Fund (ISF) 

  Nuclear decommissioning 

Nuclear Safety and 
decommissioning 

  Decentralised agencies 

  Pilot projects and prep. actions 

 20 

 0 

 949 

 135 

 321 

 (18) 

 (20) 

 (0) 

 (11) 

– 

 (0) 

1 393 

 166 

– 

 748 

 138 

 952 

1 460 

 148 

– 

2 250 

 18 

– 

 28 

– 

0 

 624 

1 063 

 192 

 (0) 

 137 

 928 

 137 

 344 

0 

 0 

3 760 

 (49) 

3 397 

3 297 

3 811 

 219 

 352 

 377 

 315 

 0 

 1 

 (16) 

 251 

 191 

– 

 (2) 

 (0) 

– 

 99 

 44 

 217 

– 

 37 

 41 

 217 

– 

 396 

 439 

 316 

– 

 1 

 9 

0 

 0 

– 

0 

193 

0 

 1 

0 

 3 

 0 

0 

 1 

0 

 2 

0 

– 

0 

 7 

4 982 

 167 

4 816 

 11 

 7 

0 

 1 

 6 

0 

 10 

 0 

0 

 24 

– 

 5 

2 353 

6 143 

 10 

 3 

 21 

11 396 

2 051 

12 178 

53 459 

 9 

 18 

0 

 8 

0 

 16 

 50 

 4 

0 

 0 

 4 

0 

 19 

 18 

0 

 18 

0 

 16 

 71 

 5 

0 

 0 

 4 

0 

 16 

– 

0 

2 265 

 18 

– 

 181 

1 244 

0 

– 

 137 

 344 

 197 

4 008 

 8 

0 

 0 

– 

0 

 403 

 439 

 316 

– 

 1 

0 

– 

0 

 (0) 

 (4) 

– 

– 

0 

 (5) 

 (1) 

– 

0 

0 

– 

 (2) 

 (0) 

0 

– 

– 

0 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Heading 

Actions under prerogatives of 
Commission 

  European Defence (Research) 

  European Defence (Non Research) 

  Military Mobility 

  Pilot projects and prep. actions 
Total Heading 5: Security and 
Defence 
Neighbourhood, Developm. and 
Intl. Cooperation 
Instrument for Nuclear Safety 
(EINS) 

6 

  Humanitarian Aid (HUMA) 

Common Foreign and Security 
Policy (CFSP) 
Overseas Countries and Territories 
(OCT) 

  Other actions 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 

  Pre-Accession Assistance (IPA III) 
Total Heading 6: Neighbourhood 
and the World 
7  Staff Pensions 

(Pensions former Members) EP 

(Pensions former Members) ECC 
(Pensions former Members) 
Commission 
(Pensions former Members) CJEU 

(Pensions former Members) ECA 
(Pensions former Members) 
Ombudsman 
(Pensions former Members) EDPS 

Annual accounts of the European Union 2022 

From budget appropriations 

From assigned revenue appropriations 

Commitm. 
carried 
forward 
from 2021 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

Amount 
remaining 
to be 
settled 
5=1+2+3-
4 

Commitm. 
carried 
forward 
from 2021 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

6 

7 

8 

9 

Amount 
remaining 
to be 
settled 
10=6+7+
8-9 

 24 

 322 

 746 

 226 

 2 

 (2) 

 (0) 

 (1) 

– 

– 

 22 

 318 

 627 

 232 

– 

 18 

 161 

 348 

 114 

– 

 25 

 479 

1 024 

 343 

 2 

 0 

 7 

 17 

0 

0 

– 

 (0) 

– 

0 

0 

 0 

 7 

 15 

0 

0 

 0 

 2 

 15 

0 

0 

 0 

 12 

 16 

0 

0 

2 364 

 (21) 

1 809 

1 128 

3 025 

 33 

 (0) 

 30 

 27 

 36 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
2022 

11=5+10 

 25 

 492 

1 040 

 343 

 2 

3 061 

23 259 

(1 004) 

14 452 

9 285 

27 423 

 194 

 (18) 

 146 

 115 

 206 

27 629 

 127 

1 052 

 (8) 

 (3) 

 39 

 19 

 139 

2 481 

2 418 

1 113 

 146 

 (20) 

 362 

 372 

 65 

 0 

 2 

 154 

 (0) 

 (0) 

 (0) 

 (8) 

 72 

 50 

– 

 95 

 30 

 35 

 0 

 92 

 116 

 107 

 16 

 1 

 148 

 1 

 31 

 32 

0 

0 

0 

 0 

– 

 (4) 

 (0) 

0 

0 

0 

– 

6 860 

 (138) 

2 320 

1 829 

7 213 

31 666 

(1 181) 

19 870 

14 079 

36 275 

 610 

 869 

 (1) 

 (24) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

2 162 

2 162 

 12 

 1 

 8 

 13 

 6 

 0 

 0 

 12 

 1 

 8 

 13 

 6 

 0 

 0 

194 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

0 

0 

0 

0 

0 

0 

– 

0 

0 

0 

0 

0 

0 

0 

 2 

 16 

 25 

0 

0 

0 

 0 

 94 

 283 

 236 

0 

0 

0 

0 

0 

0 

0 

– 

 28 

 37 

0 

0 

0 

 0 

 261 

 442 

 236 

0 

0 

0 

0 

0 

0 

0 

 3 

 15 

 20 

0 

0 

0 

 0 

 442 

 687 

 0 

0 

0 

0 

0 

0 

0 

0 

 142 

1 128 

 136 

 107 

 16 

 1 

 148 

7 655 

36 962 

 0 

– 

– 

– 

– 

– 

– 

– 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Heading 

From budget appropriations 

From assigned revenue appropriations 

Commitm. 
carried 
forward 
from 2021 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

Amount 
remaining 
to be 
settled 
5=1+2+3-
4 

Commitm. 
carried 
forward 
from 2021 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

6 

7 

8 

9 

Amount 
remaining 
to be 
settled 
10=6+7+
8-9 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
2022 

11=5+10 

  European schools 

  Remuneration statutory staff 

  Remuneration external staff 

  Members - Salaries and allowances 

  Members - Temporary allowances 

  Recruitment costs 

  Termination of service 

  Training costs 

  Social and Mobility 

Information and comm. technology 

  Rents and purchases 

Linked to buildings 

  Security 

  Mission and representation 

  Meetings, committees, conference 

  Official journal 

  Publications 

  Acquisition of information 

  Studies and investigations 

General equipment, vehicle, 
furniture 
Linguistic external services 

  Other administrative expenditure 

  Pilot projects and prep. actions 
Administrative expenditure of 
Other Institutions 
Total Heading 7: European Public 
Administration 

 0 

 0 

 38 

 2 

– 

 2 

– 

 11 

 8 

 143 

 18 

 39 

 28 

 11 

 3 

 1 

 6 

 2 

 4 

 11 

 4 

 6 

 0 

– 

 (0) 

 (4) 

 (1) 

– 

 (0) 

– 

 (2) 

 (1) 

 (3) 

 (0) 

 (2) 

 (1) 

 (8) 

 (3) 

 (0) 

 (0) 

 (0) 

 (0) 

 (1) 

 (0) 

 (1) 

 (0) 

 215 

2 629 

 253 

 15 

 2 

 31 

 9 

 17 

 22 

 255 

 289 

 131 

 64 

 50 

 12 

 2 

 13 

 4 

 3 

 20 

 31 

 17 

– 

 216 

2 629 

 244 

 15 

 2 

 30 

 9 

 18 

 20 

 269 

 306 

 109 

 65 

 42 

 6 

 2 

 14 

 4 

 5 

 17 

 31 

 18 

 0 

 630 

 (22) 

4 465 

4 468 

 968 

 (48) 

10 754 

10 741 

O  Innovation Fund (IF) 

0 

0 

– 

– 

195 

 0 

 0 

 42 

 0 

– 

 3 

– 

 9 

 9 

 126 

 0 

 60 

 26 

 11 

 7 

 0 

 6 

 2 

 3 

 14 

 4 

 5 

 0 

 606 

 932 

– 

 2 

– 

 2 

– 

0 

 0 

0 

 1 

 7 

 20 

 0 

 12 

 4 

 0 

 1 

0 

 1 

 0 

 0 

 2 

 1 

 2 

0 

– 

– 

 (1) 

– 

0 

– 

0 

 (0) 

 (1) 

 (0) 

– 

 (0) 

 (0) 

 (0) 

 (0) 

0 

 (0) 

 (0) 

– 

 (0) 

 (0) 

 (0) 

0 

 19 

 36 

 33 

 0 

0 

 0 

0 

 3 

 17 

 59 

 34 

 21 

 12 

 2 

 1 

0 

 3 

 0 

 0 

 5 

 33 

 11 

0 

 20 

 36 

 33 

 0 

0 

 1 

0 

 3 

 15 

 50 

 33 

 23 

 8 

 2 

 1 

0 

 3 

 0 

 0 

 5 

 32 

 9 

0 

 1 

– 

 1 

– 

0 

 0 

0 

 2 

 8 

 29 

 2 

 9 

 7 

 0 

 0 

0 

 1 

 0 

 0 

 2 

 2 

 4 

0 

 53 

 (56) 

 384 

 333 

 48 

 107 

 138 

 (60) 

 911 

 842 

 116 

 (3) 

2 953 

 21 

3 068 

 1 

 0 

 43 

 0 

– 

 4 

– 

 11 

 16 

 155 

 2 

 69 

 33 

 11 

 7 

 0 

 7 

 2 

 3 

 15 

 5 

 8 

 0 

 654 

1 048 

3 068 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Heading 

From budget appropriations 

From assigned revenue appropriations 

Commitm. 
carried 
forward 
from 2021 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

Amount 
remaining 
to be 
settled 
5=1+2+3-
4 

Commitm. 
carried 
forward 
from 2021 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

6 

7 

8 

9 

Amount 
remaining 
to be 
settled 
10=6+7+
8-9 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
2022 

11=5+10 

  Other actions 

S 

  Total Heading O: Outside MFF 
Solidarity and Emergency Aid 
(SEAR) 
European Globalisation Adjustment 
(EGF) 

  Brexit Adjustment Reserve 
Total Heading S: Solidarity 
mechanisms within and outside the 
Union (Special instruments) 

0 

0 

– 

– 

– 

– 

0 

0 

– 

– 

– 

– 

– 

– 

 30 

 28 

– 

– 

 30 

 28 

2 544 

2 544 

2 602 

2 602 

– 

– 

– 

 0 

– 

 0 

 8 

 147 

 (7) 

 (9) 

 53 

3 006 

 52 

 72 

 3 

3 071 

 3 

3 071 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

– 

 0 

– 

 0 

  Total 

216 522 

(2 298) 

183 894 

171 315 

226 803 

125 053 

 (227) 

173 196 

72 005  226 018 

452 821 

196 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
IMPLEMENTATION OF THE BUDGET BY INSTITUTION 

Annual accounts of the European Union 2022 

7.1.  IMPLEMENTATION OF BUDGET REVENUE  

EUR million 

Income appropriations 

Entitlements established 

Revenue 

Institution 

Initial adopted 
budget 

Final adopted 
budget 

Current 
year 

Carried 
over 

Total 

1 

2 

3 

4 

5=3+4 

On entitle- 
ments of 
current year 
6 

On entitle- 
ments 
carried over 
7 

Receipts as 
% of budget 

Out- 
standing 

Total 

8=6+7 

9=8/2 

10=5-8 

European Parliament 

European Council and Council 

 181 

 61 

 181 

 61 

 236 

 95 

 27 

 2 

 263 

 97 

 234 

 93 

 16 

 1 

 250 

 94 

 138 % 

 154 % 

 13 

 3 

Commission 

Court of Justice 

Court of Auditors 

Economic and Social Committee 

Committee of the Regions 

Ombudsman 

European Data Protection Supervisor 

European External Action Service 

170 195 

169 630 

242 422 

25 437 

267 859 

236 217 

8 187 

244 404 

 144 % 

23 455 

 63 

 25 

 13 

 11 

 1 

 2 

 50 

 63 

 25 

 13 

 11 

 1 

 2 

 50 

 63 

 25 

 19 

 14 

 1 

 2 

 393 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 63 

 25 

 19 

 14 

 1 

 2 

 63 

 25 

 19 

 14 

 1 

 2 

 393 

 392 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 63 

 25 

 19 

 14 

 1 

 2 

 99 % 

 102 % 

 141 % 

 124 % 

 104 % 

 100 % 

 392 

 782 % 

 0 

 0 

 0 

– 

– 

– 

 1 

Total 

170 603 

170 038 

243 269 

25 467 

268 736 

237 059 

8 205  245 265 

144 % 

23 471 

The consolidated reports on the implementation  of  the general budget of the EU include, as in previous years, the budget impl ementation of all  Institutions 
since within the EU budget a separate budget for each Institution is established.  

The budget and implementation of Agencies are not consolidated within the EU budget and are not included in the EU budget reports. The Commission subsidy 
paid to the agencies however is part of the EU budget. In this budgetary part of the annual accounts, only the subsidy paid from the Commission budget to the 
Agencies is taken into consideration. 

Concerning the EEAS, it should be noted that, in addition to its own budget, it also receives contributions from the Commission of EUR 221.7 million (2021: 
EUR  193.6  million)  and  the  EDF  legacy  and  the  Trust  Funds  of  EUR  19.6  million  (2021:  EUR  18.7  million).  These  contributions  cover  the  costs  of  the 
Commission's  staff  in  the  delegations  financed  under  the  EDF  and  the  Trust  Funds,  including  assigned  revenue  generated  during  the  year  from  these 
contributions. 

197 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
7.2.  IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Union 2022 

EUR million 

Institution 

Total 
appropriat. 
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 

Appropriations lapsing 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

5=2+3+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

Total 

13=10+ 
11+12 

European Parliament 

2 275 

2 151 

European Council and 
Council 

 683 

 599 

 21 

0 

 45 

2 218 

 97 % 

 43 

 641 

 94 % 

– 

0 

 46 

 29 

 46 

 29 

 10 

 13 

 1 

0 

 0 

 0 

 11 

 13 

Commission 

476 635 

174 981 

4 448 

172 812 

352 241 

 74 % 

1 451 

121 371 

122 821 

1 311 

 11 

 252 

1 573 

Court of Justice 

Court of Auditors 

Economic and Social 
Committee 

Committee of Regions 

Ombudsman 

European Data-
protection Supervisor 

European External 
Action Service 

 469 

 162 

 162 

 113 

 12 

 20 

 461 

 160 

 147 

 109 

 12 

 20 

1 144 

 787 

0 

0 

0 

0 

0 

0 

– 

 1 

 0 

 9 

 2 

– 

 0 

 462 

 98 % 

 160 

 98 % 

 155 

 96 % 

 111 

 98 % 

 12 

 97 % 

 20 

 98 % 

 285 

1 072 

 94 % 

0 

 1 

0 

0 

0 

0 

0 

 0 

 0 

 1 

 1 

– 

 0 

 0 

 1 

 1 

 1 

– 

 0 

 72 

 72 

 7 

 2 

 6 

 1 

 0 

 0 

 0 

0 

0 

0 

0 

0 

0 

– 

 0 

 0 

 0 

 0 

– 

– 

 0 

 7 

 2 

 6 

 1 

 0 

 0 

 0 

Total 

481 676  179 425 

4 469  173 196  357 091 

74 % 

1 451  121 520  122 971 

1 351 

 12 

 252 

1 614 

198 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       
7.3.  IMPLEMENTATION OF PAYMENT APPROPRIATIONS  

Annual accounts of the European Union 2022 

Institution 

Total 
approp. 
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 

Appropriations lapsing 

from 
final 
adopted 
budget 

from 
carry- 
overs 

from 
assigned 
revenue 

Total 

1 

2 

3 

4 

5=2+3+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

13 

EUR million 

European Parliament 

2 665 

1 801 

 344 

 42 

2 187 

 82 % 

 372 

European Council and 
Council 

 745 

 521 

 54 

 41 

 616 

 83 % 

 77 

 57 

 30 

 429 

 107 

 10 

 13 

Commission 

255 646 

163 451 

3 565 

71 504 

238 520 

 93 % 

1 855 

14 944 

16 799 

 247 

Court of Justice 

Court of Auditors 

Economic and Social 
Committee 

Committee of Regions 

Ombudsman 

European Data-protection 
Supervisor 

European External Action 
Service 

 499 

 171 

 423 

 152 

 183 

 134 

 128 

 14 

 21 

 97 

 11 

 18 

 26 

 8 

 16 

 12 

 2 

 1 

 1 

 0 

 5 

 1 

– 

 0 

 450 

 90 % 

 160 

 94 % 

 155 

 85 % 

 110 

 86 % 

 13 

 93 % 

 19 

 88 % 

 37 

 9 

 12 

 12 

 0 

 2 

 0 

 0 

 5 

 1 

– 

 0 

 38 

 9 

 17 

 14 

 0 

 2 

1 299 

 713 

 136 

 242 

1 091 

 84 % 

 74 

 115 

 189 

 7 

 2 

 6 

 1 

 0 

 0 

 0 

 37 

 8 

 75 

 4 

 0 

 5 

 3 

 0 

 0 

 18 

Total 

261 370  167 321 

4 163 

71 837  243 321 

93 % 

2 452 

15 152 

17 604 

 287 

 151 

 2 

 1 

 4 

 0 

 0 

 0 

 0 

– 

– 

 0 

 7 

 49 

 22 

 326 

 12 

 2 

 11 

 4 

 0 

 1 

 19 

 445 

199 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

IMPLEMENTATION OF THE AGENCIES' BUDGETS 

The agencies’ revenue and expenditure, as shown in the reports 8.1 and 8.2 below, are not consolidated 
as such within the EU budget. In this budgetary part of the annual accounts, only the subsidy paid from 
the Commission budget to the Agencies is taken into consideration. 

The EU budget implementation reports include  the  subsidy paid from  the EU  budget  to  the agencies as 
commitment and payment appropriations, when applicable. 

The  agencies’  reports  below  show  an  overview  of  the  Agencies,  both  decentralised  (also  known  as 
traditional agencies) and executive agencies, and of their revenue (8.1) and expenditure (8.2). 

Other sources of revenue and their related expenditure are not added into the EU budget accounts. Each 
agency presents its own set of annual accounts. 

8.1.  BUDGET REVENUE 

Agency 

Agency for the Cooperation of Energy Regulators 
Agency for the Operational Management of Large-Scale IT Systems 
Body of European Regulators for Electronic Communications 
Community Plant Variety Office 
European Agency for Safety and Health at Work 
European Asylum Support Office 
European Aviation Safety Agency 
European Banking Authority 
European Border and Coast Guard Agency 
European Centre for Disease Prevention and Control 
European Centre for the Development of Vocational Training 
European Chemicals Agency 
European Climate, Infrastructure and Environment Executive Agency 
European Education and Culture Executive Agency 
European Environment Agency 
European Fisheries Control Agency 
European Food Safety Authority 
European Foundation for the Improvement of Living and Working Conditions 
European Health and Digital Executive Agency 
European Innovation Council and SMEs Executive Agency 
European Institute for Gender Equality 
European Institute of Innovation and Technology 
European Insurance and Occupational Pensions Authority 
European Labour Authority 
European Maritime Safety Agency 
European Medicines Agency 
European Monitoring Centre for Drugs and Drug Addiction 
European Public Prosecutor's Office 
European Research Council Executive Agency 
European Research Executive Agency 
European Securities and Markets Authority 
European Training Foundation 
European Union Agency for Criminal Justice Cooperation 
European Union Agency for Cybersecurity 
European Union Agency for Law Enforcement Cooperation 
European Union Agency for Law Enforcement Training 
European Union Agency for Railways 
European Union Agency for the Space Programme 
European Union Fundamental Rights Agency 
European Union Intellectual Property Office 
Fusion for Energy Joint Undertaking 
Translation Centre for the Bodies of the European Union 

Funding 
MFF 
heading 

1 
4 
1 
N/A 
2b 
4 
1 
1 
4 
2b 
2b 
1 
1, 2a, 3, 5 
2b, 6 
3 
3 
2b 
2b 
1, 2b 
1, 2a 
2b 
1 
1 
2b 
1 
2b 
5 
2b 
1 
1, 3 
1 
2b 
2b 
1 
5 
5 
1 
1 
2b 
N/A 
1 
7 

Final 
adopted 
budget 

EUR million 

Revenue 
received 

 25 
 297 
 7 
 21 
 16 
 172 
 224 
 50 
 693 
 96 
 19 
 115 
 56 
 61 
 85 
 29 
 135 
 22 
 42 
 45 
 8 
 436 
 35 
 35 
 87 
 422 
 18 
 108 
 59 
 99 
 68 
 22 
 95 
 24 
 193 
 11 
 35 
 65 
 26 
 287 
 605 
 50 

 25 
 339 
 8 
 18 
 16 
 175 
 174 
 51 
 705 
 103 
 18 
 123 
 56 
 59 
 81 
 35 
 135 
 22 
 42 
 46 
 8 
 449 
 35 
 26 
 116 
 436 
 19 
 51 
 59 
 99 
 68 
 24 
 56 
 24 
 201 
 14 
 35 
1 157 
 26 
 304 
 831 
 44 

Total 

4 997 

6 316 

200 

 
 
 
 
 
 
Annual accounts of the European Union 2022 

Type of agencies revenue 

Commission subsidy 
Fee income 
Other income 
Total 

  EUR million 
Amounts 
received 

3 133 
 867 
2 316 
6 316 

8.2.  COMMITMENT AND PAYMENT APPROPRIATIONS BY 

AGENCY 

Agency 

Agency for the Cooperation of Energy Regulators 
Agency for the Operational Management of Large-Scale IT 
Systems 
Body of European Regulators for Electronic Communications 

Community Plant Variety Office 

European Agency for Safety and Health at Work 

European Asylum Support Office 

European Aviation Safety Agency 

European Banking Authority 

European Border and Coast Guard Agency 

European Centre for Disease Prevention and Control 

European Centre for the Development of Vocational Training 

European Chemicals Agency 
European Climate, Infrastructure and Environment Executive 
Agency 
European Education and Culture Executive Agency 

European Environment Agency 

European Fisheries Control Agency 

European Food Safety Authority 
European Foundation for the Improvement of Living and 
Working Conditions 
European Health and Digital Executive Agency 

European Innovation Council and SMEs Executive Agency 

European Institute for Gender Equality 

European Institute of Innovation and Technology 

European Insurance and Occupational Pensions Authority 

European Labour Authority 

European Maritime Safety Agency 

European Medicines Agency 

European Monitoring Centre for Drugs and Drug Addiction 

European Public Prosecutor's Office 

European Research Council Executive Agency 

European Research Executive Agency 

European Securities and Markets Authority 

European Training Foundation 

European Union Agency for Criminal Justice Cooperation 

201 

EUR million 

Commitment 
appropriations 

Total 
appropr. 
available 

Commit. 
made 

Payment 
appropriations 
Total 
appropr. 
available 

Payments 
made 

 25 

 378 

 8 

 22 

 17 

 219 

 297 

 51 

 707 

 113 

 19 

 123 

 56 

 59 

 89 

 36 

 25 

 291 

 8 

 19 

 16 

 182 

 218 

 50 

 694 

 103 

 19 

 118 

 54 

 59 

 72 

 31 

 151 

 151 

 23 

 42 

 46 

 9 

 410 

 35 

 35 

 123 

 452 

 20 

 51 

 59 

 99 

 69 

 25 

 62 

 23 

 41 

 46 

 8 

 384 

 35 

 33 

 109 

 431 

 19 

 50 

 59 

 98 

 67 

 23 

 55 

 31 

 367 

 10 

 21 

 22 

 207 

 310 

 58 

 956 

 172 

 19 

 137 

 59 

 66 

 109 

 41 

 149 

 27 

 47 

 49 

 11 

 454 

 42 

 39 

 137 

 539 

 21 

 58 

 62 

 24 

 268 

 8 

 19 

 17 

 154 

 170 

 51 

 559 

 121 

 18 

 115 

 52 

 59 

 72 

 23 

 134 

 22 

 43 

 43 

 9 

 440 

 39 

 22 

 110 

 410 

 20 

 45 

 59 

 107 

 100 

 75 

 26 

 67 

 67 

 23 

 54 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

Agency 

European Union Agency for Cybersecurity 

European Union Agency for Law Enforcement Cooperation 

European Union Agency for Law Enforcement Training 

European Union Agency for Railways 

European Union Agency for the Space Programme 

European Union Fundamental Rights Agency 

European Union Intellectual Property Office 

Fusion for Energy Joint Undertaking 

Translation Centre for the Bodies of the European Union 

EUR million 

Commitment 
appropriations 

Total 
appropr. 
available 

Commit. 
made 

Payment 
appropriations 
Total 
appropr. 
available 

Payments 
made 

 39 

 210 

 28 

 39 

3 801 

 26 

 564 

 981 

 50 

 39 

 198 

 19 

 37 

 645 

 25 

 346 

 704 

 44 

 44 

 238 

 31 

 39 

 25 

 188 

 17 

 35 

2 209 

1 321 

 34 

 585 

 844 

 54 

 26 

 324 

 766 

 45 

Total 

9 667 

5 649 

8 577 

6 119 

Type of expenditure 

Administrative 

Operational 

Staff 

Total 

  EUR million 

Commitment 
appropriations 

Payment appropriations 

Total appropr. 
available 

Commit. 
made 

Total appropr. 
available 

Payments 
made 

 512 

7 410 

1 745 

 486 

3 452 

1 711 

 636 

6 161 

1 780 

 458 

3 958 

1 702 

9 667 

5 649 

8 577 

6 119 

202 

 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2022 

GLOSSARY 

Actuarial assumptions 

Assumptions used to calculate the costs of future events that affect the pension liability. 

Actuarial gains and losses 

For  a  defined  benefit  scheme,  the  changes  in  actuarial  deficits  or  surpluses.  They  arise  as  a  result  of 
differences between the previous actuarial assumptions and what has actually occurred and due to effects 
of changes in actuarial assumptions. 

Administrative appropriations 

Administrative  appropriations  cover  the  running  costs  of  the  Institutions  and  entities  (staff,  buildings, 
office equipment). 

Adopted budget 

Draft  budget  becomes  the  adopted  budget  as  soon  as  it  is  approved  by  the  Budgetary  Authority  and 
declared definitely adopted by the President of the European Parliament. 

Amending budget 

Decision adopted during the budget year to amend (increase, decrease, transfer) aspects of the adopted 
budget of that year. 

Amounts to be called from Member States 

These  represent  expenses  incurred  during  the  reporting  period  that  will  need  to  be  funded  by  future 
budgets,  i.e.  by  the  EU  Member  States.  This  is  a  consequence  of  the  co-existence  of  accruals  based 
financial statements and a cash based budget. 

Annual Activity Report (AAR) 

Annual Activity Reports indicate the results of operations by reference to objectives set, associated risks 
and  the  internal  control  structure,  inter  alia.  Since  the  2001  budget  exercise  for  the  Commission  and 
since 2003 for all European Union institutions, the ‘authorising officer by delegation’ must submit an AAR 
to  his/her  institution  on  the  performance  of  his/her  duties,  together  with  financial  and  management 
information. 

Appropriations 

Budget  funding.  The  budget  forecasts  both  commitments  and  payments  (cash  or  bank  transfers  to  the 
beneficiaries). Appropriations for commitments and payments often differ (differentiated appropriations) 
because multi annual programmes and projects are usually fully committed in the year they are decided 
and  are  paid  over  the  years  as  the  implementation  of  the  programme  and  project  progresses.  Non-
differentiated  appropriations  apply  to  administrative  expenditure,  for  agricultural  market  support  and 
direct payments and commitment appropriations equal payment appropriations. 

Assigned revenue 

Dedicated  revenue  received  to  finance  specific  items  of  expenditure.  The  main  source  of  external 
assigned  revenue  is  financial  contributions  from  third  countries  to  programmes  financed  by  the  Union. 
The main source of internal assigned revenue is revenue from third parties in respect of goods, services 
or  work  supplied  at  their  request;  revenue  arising  from  the  repayment  of  amounts  wrongly  paid  and 
revenue from the sale of publications and films. 

203 

 
 
 
Available for sale financial assets 

Annual accounts of the European Union 2022 

All  financial  assets  (except  derivatives)  that  are  according  to  International  Public  Sector  Accounting 
Standards  measured  at  fair  value  and  for  which  the  changes  in  fair  value  are  to  be  recognised  in  a 
reserve in net assets until derecognition (or impairment). 

Budget line 

As  far  as  the  budget  structure  is  concerned,  revenue  and  expenditure  are  shown  in  the  budget  in 
accordance with a binding nomenclature which reflects the nature and purpose of each item, as imposed 
by  the  budgetary  authority.  The  individual  headings  (title,  chapter,  article  or  line)  provide  a  formal 
description of the nomenclature. 

Cancellation of appropriations 

Unused appropriations that may no longer be used. 

Carryover of appropriations 

Exception to the principle of annuality in so far as appropriations that could not be used in a given budget 
year may, under strict conditions, be exceptionally carried over for use during the following year. 

Commitment 

Legal  pledge  to  provide  finance  subject  to  certain  conditions.  The  EU  commits  itself  to  reimbursing  its 
share  of  the  costs  of  an  EU  funded  project.  Today’s  commitments  are  tomorrow’s  payments.  Today’s 
payments are yesterday’s commitments. 

Commitment appropriation 

Commitment  appropriations  cover  the  total  cost  of  legal  obligations  (contracts,  grant  agreements/ 
decisions) that could be signed in the current financial year. 

Current service cost 

The increase in scheme liabilities arising from service in the current financial year. 

Decommitment 

An act whereby a previous commitment (or part of it) is cancelled. 

Defined benefit scheme 

A pension or other retirement benefit scheme where the scheme rules define the benefits independently 
of the contributions payable, and the benefits are not directly related to the investments of the scheme. 
The scheme may be funded or unfunded. 

Derivatives 

Financial  instruments  whose  value  is  linked  to  changes  in  the  value  of  another  financial  instrument,  an 
indicator or a commodity. In contrast to the holder of a primary financial instrument (e.g. a government 
bond), who has an unqualified right to receive cash (or some other economic benefit) in the future, the 
holder of a derivative has only a qualified right to receive such a benefit. An example of a derivative is 
currency forward contract. 

Direct management 

Mode  of  budget  implementation.  Under  direct  management  the  budget  is  implemented  directly  by 
Commission services, Executive Agencies or Trust Funds. 

Discount rate 

The rate used to adjust for the time value of money. Discounting is a technique used to compare costs 
and benefits that occur in different time periods. 

204 

 
Effective interest rate 

Annual accounts of the European Union 2022 

The rate that discounts estimated future cash receipts or payments over the expected life of the financial 
asset or financial liability to the net carrying amount of the asset or liability.  

Financial assets and liabilities at amortized cost 

All financial assets and  liabilities that  are  according  to International Public Sector Accounting Standards 
measured at armotized cost. 

Financial assets or liabilities at fair value through surplus or deficit 

All  financial  assets  or  liabilities  that  are  according  to  International  Public  Sector  Accounting  Standards 
measured at fair value and for which the changes in fair value are to be recognised in surplus or deficit of 
the period (i.e. derivatives). 

Financial correction 

The purpose of financial corrections is to protect the EU budget from the burden of irregular expenditure. 
For  expenditure  under  shared  management,  the  task  of  recovering  irregular  payments  is  primarily  the 
responsibility of the Member State. 

A 'confirmed' financial correction has been accepted by the Member State concerned. A 'decided' financial 
correction has been adopted by a Commission decision and is always a net correction, where the Member 
State is required to reimburse irregular funds to the EU budget, thus leading to a definitive reduction of 
the allocated envelope to the Member State concerned. Confirmed and decided financial corrections are 
reported in this publication as one category. 

An 'implemented' financial correction has corrected the observed irregularity. 

Indirect management 

Mode  of  budget  implementation.  Under  indirect  management  the  Commission  confers  tasks  of  budget 
implementation to bodies of EU law or national law. 

Interruptions and suspensions 

If the Commission finds,  based on its own work or the information reported by audit authorities, that a 
Member State has failed to remedy serious shortcomings in the management and control systems and/or 
to  correct  irregular  expenditure  which  had  been  declared  and  certified,  it  may  interrupt  or  suspend 
payments. 

Irregularity 

An irregularity is an act which does not comply with the applicable EU or national rules and which has a 
potentially  negative  impact  on  the  EU  financial  interests.  Irregularities,  which  may  be  the  result  of  the 
conduct of beneficiaries claiming funds or of the authorities responsible for making payments. The notion 
of irregularity is wider than that of fraud, which refers to conduct that may qualify as a criminal offence. 

Lapsing appropriations 

Unused appropriations to be cancelled at the end of the financial year. Lapsing means the cancellation of 
all  or  part  of  the  authorisation  to  make  expenditures  and/or  incur  liabilities which  is  represented  by  an 
appropriation.  Only  for  Joint  Undertakings,  as  specified  in  their  Financial  Rules,  any  unused 
appropriations may  be  entered  in the estimate  of  revenue and expenditure of up to the following  three 
financial years (the so-called "N+3" rule). Hence, lapsing appropriations for JUs could be reactivated until 
financial year "N+3". 

Outstanding commitments 

As  the  Reste  à  Liquider  (RAL),  they  represent  the  amount  where  a  budgetary  commitment  has  been 
made  but  the  subsequent  payment  is  not  yet  done.  They  represent  payment  obligations  for  the  EU  for 
future  years  and  stem  directly  from  the  existence  of  multi  annual  programmes  and  the  dissociation 
between commitment and payment appropriations. 

205 

 
Own resources 

Annual accounts of the European Union 2022 

The main source of revenues for the EU budget. The different own resources are listed in the applicable 
Own  Resource  Decision  (Council  Decision  (EU,  Euratom)  2020/2053)  and  are  traditional own  resources, 
VAT-based  own  resource,  GNI-based  resource  and  non-recycled  plastic  packaging  waste-based  own 
resource. 

Payment appropriations 

Payment  appropriations  cover  expenditure  due  in  the  current  year,  arising  from  legal  commitments 
entered in the current year and/or earlier years. 

Pre-financing 

A payment intended to provide the beneficiary with a float. It may be split into a number of instalments 
in accordance with the provisions of the underlying contract, decision, agreement or the basic legal act. 
The float or advance is either used for the purpose for which it was provided during the period defined in 
the agreement or it is repaid. 

Preventive measure 

Preventive measures, which are at the Commission’s disposal to protect the EU budget when it is aware 
of  potential  deficiencies,  include  suspensions  and  interruptions  of  payments  from  the  EU  budget  to  the 
operational programme. 

Reste à Liquider (RAL) 

As  the  Outstanding  commitments,  it  represents  the  amount  where  a  budgetary  commitment  has  been 
made  but  the  subsequent  payment  is  not  yet  done.  They  represent  payment  obligations  for  the  EU  for 
future  years  and  stem  directly  from  the  existence  of  multi  annual  programmes  and  the  dissociation 
between commitment and payment appropriations. 

Shared management 

Mode of budget implementation. Under shared management budget implementation tasks are delegated 
to Member States. About three quarters of the EU expenditure falls under this implementation mode. 

Traditional own resources 

Traditional  own  resources  are  defined  in  the  applicable  Own  Resources  Decision  (Council  Decision  (EU, 
Euratom) 2020/2053) and comprise namely customs duties and sugar levies. 

Transfers (between budget lines) 

Transfers between budget lines imply the relocation of appropriations from one budget line to another, in 
the course  of the financial  year, and thereby  they  constitute an exception to the budgetary  principle of 
specification. They are, however, expressly authorised by the Treaty on the Functioning of the European 
Union under the conditions laid down in the Financial Regulation (FR). The FR identifies different types of 
transfers depending on whether they are between or within budget titles, chapters, articles or headings 
and require different levels of authorisation. 

206 

 
 
Annual accounts of the European Union 2022 

LIST OF ABBREVIATIONS  

AAR 

AC 

AFS 

Annual Activity Report 

Amortised Cost 

Available For Sale 

AMIF  

Asylum, Migration and Integration Fund 

AOD  

Authorising Officers by Delegation 

ATM 

BOP 

Air Traffic Management 

Balance of Payments 

BUFI Fund 

Budget Fines Fund 

CAP 

Common Agricultural Policy 

CCS LGF 

Cultural and Creative Sector Guarantee Facility 

CEF2 

Connecting Europe Facility 

CEF DI 

Connecting Europe Facility Debt Instrument 

CF 

CIP 

Cohesion Fund 

Competitiveness and Innovation Framework Programme 

COM 

European Commission 

COSME 

Competitiveness of Enterprises and Small and Medium-sized Enterprises 

COSO 

Committee of Sponsoring Organizations of the Treadway Commission 

CPF 

CPR 

Common Provisioning Fund 

Common Provisions Regulation 

CRII+ 

Coronavirus Response Investment Initiative Plus 

D&WM 

Decommissioning and Waste Management 

EAD 

Exposure At Default 

EAFRD 

European Agricultural Fund for Rural Development 

EAGF  

European Agricultural Guarantee Fund 

EAR 

EaSI 

European Union Accounting Rule 

Employment and Social Innovation 

EBRD 

European Bank for Reconstruction and Development 

ECA 

ECB  

European Court of Auditors 

European Central Bank 

207 

 
 
 
Annual accounts of the European Union 2022 

ECL 

Expected Credit Losses 

ECOFIN 

Economic and Financial Affairs Council 

ECSC i.L.  

European Coal and Steel Community in Liquidation 

EDF 

EDIF 

EEA 

EEAS 

EFSD 

EFSE  

EFSF  

EFSI 

EFSM 

EFTA  

European Development Fund 

Guarantee Facility under the Western Balkan 

European Economic Area 

European External Action Service 

European Fund for Sustainable Development 

European Fund for Southeast Europe 

European Financial Stability Facility 

European Fund for Strategic Investments 

European Financial Stabilisation Mechanism 

European Free Trade Association 

EGNOS  

European Geostationary Navigation Overlay System 

EIB  

EIF  

European Investment Bank 

European Investment Fund 

ElectriFI 

Electrification Financing Initiative  

ELM 

External Lending Mandate 

EMFF  

European Maritime and Fisheries Fund 

EMU  

Economic and Monetary Union 

ENEF  

Enterprise Expansion Fund 

ENIF  

ENPI  

EP  

Enterprise Innovation Fund 

European Neighbourhood and Partnership Instrument 

European Parliament 

ERDF  

European Regional Development Fund 

ERI 

ESA  

ESF  

ESIF  

ESM  

ETF  

EIB Resilience Initiative 

European Space Agency 

European Social Fund 

European Structural and Investment Funds 

European Stability Mechanism 

Exchange-Traded Fund 

208 

 
EU  

European Union 

Annual accounts of the European Union 2022 

EUMETSAT  

European Organisation for the Exploitation of Meteorological Satellites 

Euratom 

European Atomic Energy Community 

FGC 

FIFO 

FP7  

FR  

Financial Guarantee Contract 

First-in, First-out 

7th Research Framework Programme for Research and Technological Development 

EU Financial Regulation 

FSDA  

Financial Statement Discussion and Analysis 

FVNA 

FVSD 

GDP 

GNI  

Fair Value through Net Assets/Equity 

Fair Value through Surplus or Deficit 

Gross Domestic Product 

Gross National Income 

GNSS  

Global Navigation Satellite Systems 

H2020  

Horizon 2020 

HLRCP 

High Level Risk and Compliance Policy 

IIW  

IMF  

Infrastructure and Innovation Window 

International Monetary Fund 

IPSAS 

International Public Sector Accounting Standards 

IF 

IT  

Innovation Fund 

Information Technology 

ITER  

International Thermonuclear Experimental Reactor 

JRC  

JU  

LGD 

LGF 

Joint Research Centre 

Joint Undertaking 

Loss given Default Rate 

Loan Guarantee Facility 

LGTT  

Loan Guarantee Instrument for TEN-T projects 

MAP  

MEP  

MFA  

MFF  

MMF 

Multi Annual Program - Medium Enterprise Financial Inclusion Programme 

Member of the European Parliament 

Macro Financial Assistance 

Multiannual Financial Framework 

Money Market Fund 

209 

 
 
MSME 

Micro, Small and Medium Enterprise 

Annual accounts of the European Union 2022 

NDICI 

Neighbourhood, Development and International Cooperation Instrument 

NGEU 

NextGenerationEU 

ORD  

Own Resources Decision 

PBI  

PD 

Project Bond Initiative 

Probability of Default 

PF4EE  

Private Finance for Energy Efficiency Instrument 

PGF  

PPP  

Participants Guarantee Fund 

Public-Private Partnership 

PSEO  

Pension Scheme of European Officials  

RAL 

"Reste à Liquider" (Outstanding Commitments) 

RSFF  

Risk Sharing Finance Facility 

RRF 

RTD  

S&P  

Recovery and Resilience Facility 

Research, Technological Development and Demonstration 

Standard & Poor's Financial Services LLC 

SANAD  

MENA Fund for Micro-, Small and Medium Enterprises 

SAPARD  

Special Accession Programme for Agriculture and Rural Development  

SEMED  

Southern and Eastern Mediterranean Micro, Small and Middle sized Entreprises 
Financial Inclusion Programme 

SICR 

Significant Increase of Credit Risk 

SIUGI  

SME Initiative Uncapped Guarantee Instrument 

SME 

Small and Medium-sized Enterprise(s) 

SMEW  

SME Window (Small and Medium-sized Enterprises Window) 

SURE 

Support to mitigate Unemployment Risks in an Emergency 

TFEU  

Treaty on the Functioning of the European Union 

TOR  

Traditional own resources 

TRDI  

Temporary Rural Development Instrument 

VAT  

Value Added Tax 

210