DRAFT AMENDING BUDGET No 3 TO THE GENERAL BUDGET 2023 Update of revenue (own resources) and other technical adjustments including the set-up and financing for 2023 of the new Defence Industrial Reinforcement Instrument and of the European Chips Act
Date: 2023-07-03
Institutions: Directorate-General for Budget, European Commission
Subjects: EU financial instrument, European Data Protection Supervisor, amending budget, defence expenditure, draft budget (EU), financial year, general budget (EU), negotiation of an agreement (EU), own resources, sustainable fisheries

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 3.7.2023  COM(2023) 406 final 2023/0240 (BUD)    DRAFT AMENDING BUDGET No 3 TO THE GENERAL BUDGET 2023   Update of revenue (own resources) and other technical adjustments including the set-up and financing for 2023 of the new Defence Industrial Reinforcement Instrument and of the European Chips Act  
 
 
Having regard to: 

– 

– 

– 

– 

– 

– 

the Treaty on the Functioning of the European Union, and in particular Article 314 
thereof,  in  conjunction  with  the  Treaty  establishing  the  European  Atomic  Energy 
Community, and in particular Article 106a thereof, 

Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of 
own resources of the European Union1, entered into force on 1 June 2021, 

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 
(…)2, and in particular Article 44 thereof, 

the general budget of the European Union for the financial year 2023, as adopted on 
23 November 20223, 
amending budget No 1/20234, adopted on 13 June 2023, 
draft amending budget No 2/20235, adopted on 12 April 2023, 

The European Commission hereby presents to the European Parliament and to the Council 
Draft Amending Budget No 3 to the 2023 budget. 

CHANGES  TO  THE  STATEMENT  OF  REVENUE  AND  EXPENDITURE  BY 
SECTION 

The changes to the general statement of revenue and to the individual section III are available 
on EUR-Lex (https://eur-lex.europa.eu/budget/www/index-en.htm). 

1  

2  

3  
4  
5  

Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of  own resources of 
the European Union and repealing Decision 2014/335/EU, Euratom, OJ L 424, 15.12.2020. 
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, 30.7.2018. 
OJ L 58, 23.2.2023. 
OJ X XX, 13.6.2023. 
COM(2023) 250 final, 12.4.2023. 

1 

 
 
 
 
 
                                                           
EXPLANATORY MEMORANDUM 

1. 

INTRODUCTION 

The main purpose of Draft Amending Budget (DAB) No 3 for the year 2023 is to update the revenue 
side of the budget to take account of the latest developments as regards: 

– 

the updated own resources forecasts for the 2023 budget agreed by the Advisory Committee on 
Own Resources (ACOR) on 25 May 2023. This update is typically presented shortly after the 
ACOR forecast meeting, in line with the Member States’ expectations that the ACOR updates 
are budgeted as soon as possible; 

– 

to update other revenues such as the United Kingdom contribution, fines and other. 

Additionally, DAB 3/2023 includes the following specific elements related to expenditure: 

– 

– 

– 

– 

adjustments  with  respect  to  the  set-up  and  financing  for  2023  of  the  new  Defence  Industrial 
Reinforcement  Instrument  established  by  the  Act  in  Support  of  Ammunition  Production 
(ASAP); 
adjustments with respect to the financing of the European Chips Act6 for 2023 following the 
political  agreement  reached  between  the  European  Parliament  and  the  Council  on  18  April 
2023; 

cancellation  of  appropriations  from  the  reserve  line  for  the  Sustainable  Fisheries  Partnership 
Agreements  (SFPA),  due  to  delays  in  the  negotiations  with  three  third  countries  (namely 
Morocco, Liberia and Solomon Islands); 

reinforcement  of  the  budget  of  the  European  Data  Protection  Supervisor  (EDPS)  to  cover 
additional costs in relation to the rent to be paid to the European Parliament. 

Overall, the net impact of DAB 3/2023 on expenditure amounts to an increase of EUR 54,8 million in 
commitment appropriations and a decrease of EUR 190,9 million in payment appropriations.  

6  

COM(2022) 46, 8.2.2022. 

2 

 
 
 
 
                                                           
2. 

UPDATE OF REVENUE 

2.1 

Overall  impact  of  DAB  3/2023  on  the  distribution  of  total  own  resources  payments 
between Member States 

The  revised  forecasts  for  2023  were  agreed  in  the  188th  ACOR  meeting  on  25  May  2023.  The 
adjustments of the revenue side of the budget are required to update the estimates for Traditional Own 
Resources (TOR)  as well  as for the own resources based on the Value Added Tax (VAT), the non-
recycled Plastic Packaging Waste (PPW) and Gross National  Income (GNI), taking into account  the 
Spring economic forecasts (see section 2.2). 

Moreover, the amount of other revenues is updated to take into account the revised United Kingdom 
contribution  and definitely cashed fines and penalty payments until June 2023 (see sections 2.3 and 
2.4, respectively). 

The overall impact of the revenue adjustments of this DAB is shown in the summary table below. This 
table also shows the distribution of total own resources payments between Member States as budgeted 
in the initial 2023 budget, as included in DAB 2/20237, and finally as included in this DAB 3/2023. 

Distribution of total own resources payments by Member States (in million EUR) 

Budget 2023 

DAB 2/2023 

DAB 3/2023 

(1) 

6 894,7 

858,5 

2 789,8 

3 251,7 

(2) 

6 807,6 

846,2 

2 746,8 

3 193,3 

(3) 

6 808,1 

944,6 

2 864,0 

3 172,5 

36 585,2 

35 946,9 

34 945,9 

371,8 

3 625,3 

2 034,3 

13 901,1 

27 185,1 

615,9 

19 932,2 

250,2 

399,0 

666,0 

552,6 

1 850,4 

159,0 

9 312,6 

3 629,6 

7 624,3 

366,5 

3 568,1 

2 002,0 

13 687,4 

26 753,6 

606,1 

19 624,8 

246,3 

393,2 

656,5 

543,3 

1 824,6 

156,6 

9 163,5 

3 559,3 

7 520,6 

393,2 

3 690,0 

2 122,8 

13 991,3 

26 567,0 

670,8 

19 515,2 

259,5 

420,6 

746,0 

470,2 

1 932,7 

166,4 

9 721,1 

3 617,8 

7 552,2 

BE 

BG 

CZ 

DK 

DE 

EE 

IE 

EL 

ES 

FR 

HR 

IT 

CY 

LV 

LT 

LU 

HU 

MT 

NL 

AT 

PL 

7  

COM(2023) 250 final, 12.4.2023. 

3 

 
 
 
  
  
                                                           
PT 

RO 

SI 

SK 

FI 

SE 

EU 

2 425,4 

2 759,6 

662,8 

1 123,8 

2 526,6 

4 585,2 

2 388,5 

2 715,2 

653,6 

1 106,0 

2 483,3 

4 493,9 

2 480,9 

2 928,1 

768,2 

1 087,0 

2 428,1 

4 031,4 

156 572,7 

154 053,7 

154 295,4 

2.2 

Revision of the forecasts of TOR, VAT, PPW and GNI bases 

In line with Article 44(1), point (b) of the Financial Regulation8, the Commission proposes to revise 
the financing of the budget on the basis of updated economic forecasts. According to the established 
practice,  the  revised  revenue  forecasts  are  agreed  with  the  Member  States  in  the  ACOR  forecast 
procedure.  

The revision concerns the forecast of TOR to be paid to the budget in 2023 as well as the forecast of 
the 2023 VAT, PPW and GNI bases. The forecast included in the 2023 budget was agreed in the 185th 
ACOR meeting held on 23 May 2022. The revision in the present DAB 3/2023 takes into account the 
agreed forecasts of the 188th ACOR meeting held on 25 May 2023. The use of an updated forecast of 
own resources improves the accuracy of the revenue forecasts and hence of the payments that Member 
States are asked to make to the EU budget during the budgetary year. 

The Commission’s revenue projections are based on the Commission 2023 Spring economic forecast9, 
which gives a slightly better outlook for the economy amid persistent challenges. The EU economy is 
set for moderate growth this year and next  year. Despite a challenging global context, the European 
economy  has  avoided  recession  and  continues  to  show  resilience.  This  outcome  owes  much  to  the 
policies  put  in  place  by  the  EU  and  its  Member  States.  Diversification  of  energy  sources  and 
infrastructural  investment  to  address  gas  supply  bottlenecks  and  boost  renewable  energy,  which  are 
also supported by the Recovery and Resilience Facility, have paid off. Lower energy prices, abating 
supply constraints and a strong labour market supported moderate growth in the first quarter of 2023. 
This better-than-expected start to the year lifts the growth outlook for the EU economy slightly to 1,0 
% in 2023 (from 0,8 % expected in the Winter 2023 Forecast). Upward revisions for the euro area are 
of a similar magnitude, with GDP growth now expected at 1,1 % in 2023. On the back of persisting 
core  price  pressures,  headline  inflation  has  also  been  revised  upwards  compared  to  the  winter,  to 
5,8 %  in  2023  in  the  euro  area.  Markedly  lower  energy  prices  are  working  their  way  through  the 
economy, reducing firms' production costs. Consumers are also seeing their energy bills fall, although 
private consumption is set to remain subdued as wage growth lags inflation. While the outlook in the 
central scenario of the Commission spring forecast has not changed much since last winter, downside 
risks to the economic outlook have increased. Persistence of core inflation has emerged as a key risk. 
Risks related to the EU’s external environment remain elevated, with new uncertainties following the 
banking  sector  turbulence  or  related  to  wider  geopolitical  tensions.  Finally,  there  is  persistent 
uncertainty stemming from Russia’s ongoing war of aggression against Ukraine.  

The economic scenario underlying the 2023 budget is broadly confirmed by the latest estimates: 

8  

9  

Regulation (EU, Euratom) 2018/1046/EU of the European Parliament and of the  Council of 18 July 2018 on the 
financial rules applicable to the general budget of the Union (OJ L 193, 30.7.2018, p. 1-222). 
European Commission, 2023, European Economic Forecast Spring 2023, European Economy, Institutional Paper 
200. 

4 

 
 
 
 
                                                           
  Total  customs  duties  to  be  collected  in  2023,  net  of  25  %  collection  costs,  are  forecast  at 
EUR 23 730,1  million,  which  represents  an  increase  of  9,9  %  compared  with  the  forecast  of 
EUR 21 590,36 million included in the 2023 budget. The Commission compared the results of 
the traditional ACOR forecast method (based on the forecast growth rates of extra-EU imports) 
with  the  results  of  the  extrapolation  method  (based  on  the  latest  outturn  data  for  collected 
customs  duties,  i.e.  January  –  April  2023).  As  in  the  past  years  the  Commission  takes  a 
conservative approach ensuring sound financial management of the EU budget in a context of 
economic and financial uncertainties as stipulated in the Spring economic forecast. Therefore, 
it is proposed to use the outcome of the traditional forecast method for the revision of the 2023 
TOR forecast, which is lower than the outcome of the extrapolation method, but still results in 
higher revenues of EUR 2,1 billion in comparison with DAB 2/2023. 

  The  total  2023  EU  uncapped  VAT  base  is  now  forecast  at  EUR 7 522 260,0  million,  which 
represents  an  increase  of  8,6  %  compared  to  the  May  2022  forecast  of  EUR 6 925 198,0 
million. The total 2023 EU capped VAT base10  is forecast at EUR 7 486 175,5 million, which 
represents  an  increase  of  8,4  %  compared  to  the  May  2022  forecast  of  EUR 6 906 555,6 
million. The updated forecast takes into account the simplified definition of the VAT base as 
provided by the Own Resources Decision11. 

  The forecast of non-recycled PPW in the EU amounts to 9 891 423,2 tonnes in 2023, which is 
an  increase  of  11,6  %  compared  to  the  May  2022  forecast  of  8 859 902,5  tonnes.  The 
corresponding  Member  States  contributions  from  the  PPW  is  presented  in  Table  3  of  the 
accompanying budgetary annex. 

  The total 2023 EU GNI base is forecast at EUR 16 883 807,9 million, which is an increase of 

3,6 % compared to the May 2022 forecast of EUR 16 299 159,8 million. 

The exchange rates of 30 December 2022 have been used for converting the forecast VAT and GNI 
bases in national currencies into EUR, for the seven Member States that are not members of the euro 
area. This avoids distortions, since these rates are used to convert budgeted own resources payments 
from EUR into national currencies when the amounts are called in, as stipulated in Article 10a(1) of 
Council Regulation 609/201412. 

The revised forecasts of TOR, uncapped VAT bases, PPW bases and GNI bases for 2023, as adopted 
at the 188th ACOR meeting, are set out in the following table: 

10  

11  

12  

Article 2(1), point (b) of ORD 2020 stipulates that for each Member State the VAT base shall not exceed 50 % of 
GNI.  For  DAB  3/2023,    Croatia,  Cyprus,  Luxembourg,  Malta,  Poland  and  Slovenia  will  have  their  VAT  base 
capped at 50 % of GNI. 
Council  Decision  (EU,  Euratom)  2020/2053  of  14  December  2020  on  the  system  of  own  resources  of  the 
European Union and repealing Decision 2014/335/EU, Euratom, OJ L 424, 15.12.2020, p. 1–10. 
Council  Regulation  (EU,  Euratom)  No  609/2014  of  26  May  2014  on  the  methods  and  procedure  for  making 
available the traditional, VAT and GNI-based own resources and on the measures to meet cash requirements (OJ 
L 168, 7.6.2014, p. 39), as last amended by Council Regulation (EU, Euratom) 2022/615 of 5 April 2022 (OJ L 
115, 13.4.2022, p. 51). 

5 

 
 
 
 
 
                                                           
Revised forecasts of TOR, VAT, PPW and GNI bases for 2023  

Customs 
(75 %) 

Uncapped 
VAT bases 

PPW bases  GNI bases 

Capped  
VAT bases13 

EUR million 

tonnes 

EUR million 

2 164,1 

234 226,9 

211 801,8 

582 813,2 

170,3 

45 587,5 

76 347,6 

92 469,7 

449,7 

127 090,5 

152 087,5 

300 318,9 

444,6 

159 467,0 

177 087,3 

389 766,4 

234 226,9 

45 587,5 

127 090,5 

159 467,0 

4 796,1 

1 768 749,9 

1 779 081,4 

4 242 782,1 

1 768 749,9 

65,8 

18 840,9 

30 978,0 

38 647,3 

521,8 

123 760,2 

236 120,6 

402 989,5 

338,7 

91 466,2 

129 529,9 

222 359,9 

2 101,5 

682 563,3 

1 035 520,7 

1 414 706,7 

18 840,9 

123 760,2 

91 466,2 

682 563,3 

2 191,9 

1 384 191,9 

1 955 262,6 

2 883 038,3 

1 384 191,9 

60,5 

43 375,6 

46 773,8 

73 494,0 

2 645,6 

906 266,0 

1 299 206,4 

2 054 378,6 

40,6 

66,7 

19 319,9 

10 508,3 

26 781,6 

20 026,9 

29 282,8 

42 711,2 

159,0 

32 237,5 

40 921,3 

72 087,2 

15,9 

41 204,9 

15 441,9 

55 437,8 

248,9 

82 359,1 

346 302,1 

183 824,4 

22,3 

9 745,1 

14 479,8 

16 806,3 

3 723,3 

469 784,1 

291 519,0 

999 460,3 

288,2 

226 119,4 

213 901,9 

479 248,1 

1 417,8 

359 995,6 

811 444,9 

702 760,4 

266,1 

125 040,9 

282 309,5 

254 201,2 

324,8 

114 973,4 

346 971,1 

315 334,2 

244,3 

126,6 

31 842,2 

29 817,2 

63 517,5 

53 809,2 

56 745,4 

119 060,6 

212,0 

108 626,1 

111 172,9 

278 328,0 

623,0 

241 589,8 

160 807,5 

576 484,5 

36 747,0 

906 266,0 

13 390,8 

20 026,9 

32 237,5 

27 718,9 

82 359,1 

8 403,2 

469 784,1 

226 119,4 

351 380,2 

125 040,9 

114 973,4 

31 758,8 

53 809,2 

108 626,1 

241 589,8 

23 730,1 

7 522 260,0 

9 891 423,2  16 883 807,9 

7 486 175,5 

BE 

BG 

CZ 

DK 

DE 

EE 

IE 

EL 

ES 

FR 

HR 

IT 

CY 

LV 

LT 

LU 

HU 

MT 

NL 

AT 

PL 

PT 

RO 

SI 

SK 

FI 

SE 

EU 

2.3  United Kingdom contribution 

The United Kingdom contribution is to be paid in accordance with Article 148 of the Agreement on 
the withdrawal of the United Kingdom from the European Union (the ‘Withdrawal Agreement’)14 and 

13    
14  

The amounts highlighted in grey result from the capped VAT bases, as explained in footnote 10 above. 
 Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European 
Union and the European Atomic Energy Community, OJ L 29, 31.01.2020, p. 7. 

6 

 
 
 
  
 
 
 
                                                           
covers in particular the United Kingdom’s share in the outstanding commitments prior to 2021 to be 
paid in 2023 as well as the United Kingdom’s share in the Union’s liabilities (such as pensions) and 
the contingent financial liabilities. The overall contribution of the United Kingdom also includes the 
amounts  due  to  the  United  Kingdom  related  to  own  resources  corrections  and  adjustments  for 
financial years until 2021.  

The United Kingdom contribution is based on the United Kingdom’s share15, which is  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 including the United 
Kingdom. The United Kingdom’s share was adjusted in 2022 in accordance with Article 139 of the 
the  United  Kingdom  has  been  set  at  
Withdrawal  Agreement.  The  definitive  share  of 
12,431681219587700 %. 

The table below presents the elements of the United Kingdom contribution that were already included 
in the April invoice  as well as the estimates for elements to be included in the September invoice that 
are  known  at  this  stage.  The  revised  amount  of  the  United  Kingdom  contribution  included  in  DAB 
3/2023  is  calculated  taking  into  account  the  payment  modalities  set  out  in  Article  148  of  the 
Withdrawal Agreement.  

It is therefore proposed to update the estimate introduced in the 2023 budget accordingly. 

Updated United Kingdom contribution in 2023 (in EUR) 

Reference to the Article of the 
Withdrawal agreement 

2023 

Total United Kingdom contribution in 2023, of which: 
1.  RAL  prior  2021  (including  net  financial  corrections)  - 
due for payment in 2023 
2. Union's liabilities/pensions*  
3. Own resources corrections and adjustments, of which: 

3.1 Surplus/deficit of 2020 
3.2 UK correction updates (2018-2019) 
3.3. VAT&GNI 
3.4. TOR** 

4. Fines 
5. Contingent liabilities, of which: 

5.1 ELM, EFSI, EFSD, loans (Guarantee funds) 
5.2 Financial Instruments 
5.3 Legal cases (incl. fines) 

6. ECSC net assets 
7. EIF investment 
8. Access to networks/systems/data bases*** 

Art. 140 

Art.142 

Art.136(3)(a) 
Art.136 
Art.136 
Art.136, Art. 140(4) 
Art.141 

Art.143 
Art.144 
Art.147 
Art.145 
Art.146 
Art.34(2), Art. 50 and 53, Art. 
62(2), Art. 63(1)(e), Art. 63(2), 
Art.99(3),Art. 100(2) 

9 062 246 065 

8 563 340 885 
288 251 050 
699 026 182 
n/a 
11 333 962 
1 037 501 234 
-349 809 013 
-98 560 248 
-347 873 388 
-312 568 840 
-53 678 624 
18 374 076 
-36 874 795 
-6 648 463 
1 584 841 

* - the amount of EUR 259 million will be entered in the EU budget as assigned revenues 
**  -  this  amount  includes  the  share  referred  to  in  Article  139  of  the  Withdrawal  Agreement  received  by  the  UK  for  its 
payments following the Court judgement C-213/19 (the so-called undervaluation case) 
*** - to be entered in the EU budget as assigned revenues 

15    

Referred to in Article 136(3), points (a) and (c), and in Articles 140 to 147 of the Withdrawal Agreement. 

7 

 
 
 
 
  
 
 
 
 
 
 
                                                           
2.4 

Fines and penalty payments 

Considering the fines and penalty payments cashed from 1 January to 31 May 2023, it is proposed to 
enter the following amounts in the 2023 budget: 

a)  EUR  37,5 million of competition fines. 

b)  EUR  148,4 million  of  penalty  payments  and  lump  sums  imposed  on  Member  States, 
which did not comply with judgments of the Court of Justice of the European Union on 
their failure to fulfil an obligation under the Treaties. 

c)  EUR  0,6 million of interest connected with fines and penalty payments. 

d)  EUR  504,0 million  of  other  non-assigned  fines  and  penalty  payments  mainly  for 

excess emissions premia. 

According  to  the  provisions  of  Articles  141  of  the  Withdrawal  Agreement,  the  United  Kingdom  is 
entitled to receive its share on an amount of EUR 43 million, included in the above list under items a), 
c) and d). 

It  is  therefore  proposed  to  increase  the  initial  forecasts  introduced  in  the  2023  budget  of 
EUR  101 million by EUR  589,5 million to EUR  690,5 million. 

The detail by line is shown in the table below. 

Revenue line 
4 2 0 

4 2 1 

4 2 4 
4 2 9 
Total 

Name 
Fines in connection with the implementation of the 
rules on competition 
Penalty  payments  and  lump  sums  imposed  on  a 
Member State 
Interest connected with fines and penalty payments 
Other non-assigned fines and penalty payments 

Budget 2023 

DAB 3/2023 

New amount 

100 000 000 

-62 524 059  

37 475 941 

EUR 

p.m. 

148 411 968 

148 411 968 

1 000 000 
p.m. 
101 000 000 

-423 740 
503 991 500 
589 455 669 

576 260 
503 991 500 
690 455 669  

2.5 

Impact on the GNI-based own resource contribution for 2023 

Taking  into  account  the  revised  forecasts  for  TOR,  for  the  simplified  VAT  base  and  for  the  own 
resource based on non-recycled PPW, the amount of own resources other than GNI has increased by 
EUR 4 703 876 260.  Together  with  the  decrease  of  other  revenues  by  EUR 432 605 402,  this 
decreases the GNI contribution by EUR 4 462 154 001 compared to DAB 2/2023. 

In  order  to  respect  the  principle  of  equilibrium  applicable  to  the  budget  of  the  European  Union 
enshrined in Article 310(1) TFEU, the uniform rate to  be  applied to  the  sum  of all Member States’ 
GNI has to be recalculated taking into account all the other revenue. 

The recalculated uniform rate for the GNI-based own resource is fixed as follows: 

Uniform rate to be applied on 1 % of GNI = (total expenditure – other revenue – total net amount of 
TOR  –  VAT-based  own  resource  –  non-recycled  PPW-based  own  resource  contributions)  /  1 %  of 
GNI 

Uniform rate: 

= (168 457 786 822 – 14 162 379 985 – 23 730 100 000 – 22 458 526 500 – 7 201 885 360) / 168 838 
079 000 

= 0,597642993657847 

The revised GNI-based  own resources contributions considering the new uniform  rate are set  out  in 
the following table: 

8 

 
 
 
 
 
 
Budgetary year 2023 (in EUR) 

Member State 

1 % of GNI base 
used for DAB 
2/2023     

Uniform rate of 
GNI-based own 
resource (in %) 
according to DAB 
2/2023 

1 % of GNI base  
 (Agreed ACOR 
forecast)  

Uniform rate of 
GNI-based own 
resource (in %) 
according to 
DAB 3/2023 

Difference in the 
GNI 

(1) 

(2) 

(3) 

(4) 

(5) = (3 x 4) - (1 x 2) 

BE 

BG 

CZ 

DK 

DE 

EE 

IE 

EL 

ES 

FR 

HR 

IT 

CY 

LV 

LT 

LU 

HU 

MT 

NL 

AT 

PL 

PT 

RO 

SI 

SK 

FI 

SE 

5 630 560 000 

 795 786 000 

2 781 434 000 

3 774 175 000 

41 301 252 000 

 342 901 000 

3 703 703 000 

2 093 970 000 

13 828 586 000 

27 919 613 000 

 635 913 000 

19 889 147 000 

 252 190 000 

 376 700 000 

 615 572 000 

 604 113 000 

1 670 483 000 

 155 608 000 

5 828 132 000 

 924 697 000 

3 003 189 000 

3 897 664 000 

42 427 821 000 

 386 473 000 

4 029 895 000 

2 223 599 000 

14 147 067 000 

28 830 383 000 

 734 940 000 

20 543 786 000 

 267 816 000 

 427 112 000 

 720 872 000 

 554 378 000 

1 838 244 000 

 168 063 000 

9 648 131 000 

0,6464569 

9 994 603 000 

0,5976430 

4 549 330 000 

6 708 365 000 

2 384 950 000 

2 869 778 000 

 592 192 000 

1 153 958 000 

2 801 598 000 

5 911 590 000 

4 792 481 000 

7 027 604 000 

2 542 012 000 

3 153 342 000 

 635 175 000 

1 190 606 000 

2 783 280 000 

5 764 845 000 

- 156 772 308 

 38 197 304 

- 3 242 436 

- 110 430 024 

-1 342 790 844 

 9 302 151 

 14 154 020 

- 24 743 067 

- 484 689 857 

- 818 551 060 

 28 141 373 

- 579 627 256 

- 2 971 619 

 11 740 166 

 32 883 311 

- 59 212 911 

 18 718 326 

-  152 197 

- 263 896 744 

- 76 753 239 

- 136 670 788 

- 22 551 807 

 29 384 861 

- 3 218 738 

- 34 426 819 

- 147 704 667 

- 376 269 132 

Total 

162 991 598 000 

168 838 079 000 

-4 462 154 001 

9 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3. 

UPDATE OF EXPENDITURE 

3.1 

Defence  Industrial  Reinforcement  Instrument  established  by  the  Act  in  Support  of 
Ammunition Production (ASAP) 

The  Russian  war  against  Ukraine  reinforces  the  importance  of  defence,  as  reflected  in  the 
Commission’s  proposal  to  create  the  act  in  support  of  ammunition  production  (ASAP)16.  ASAP 
establishes  a  new  instrument  to  support  the  ramp  up  of  manufacturing  capacities  of  the  European 
defence industry and secure supply chains, with the aim of enabling the timely availability and supply 
of relevant defence products in the Union via a series of specific  and targeted measures to speed up 
the industry adjustment to structural changes. ASAP is planned to have financial impact from 2023 to 
2024 for commitment appropriations and from 2023 to 2028 for payment appropriations. 

The  Commission  therefore  proposes  to  make  the  necessary  additional  adjustments  to  the  budget 
nomenclature, budget remarks and level of appropriations in this DAB for the year 2023.  

This  includes  creating  two  new  budget  lines,  initially  with  a  token  entry  (“p.m.’),  for  which  the 
corresponding budget remarks are set out in the budgetary annex. 

Budget line 

Name 

Section III – Commission 
13 01 05 
13 07 01 
Total 

Support expenditure for the Defence Industrial Reinforcement Instrument 
Defence Industrial Reinforcement Instrument 

Commitment 
appropriations 

Payment 
appropriations 

EUR 

p.m. 
p.m. 
p.m. 

p.m. 
p.m. 
p.m. 

Given the absence of unallocated margins under heading 5 (Security and Defence), the 2023 financing 
of  the  new  ASAP  defence  initiative  is  proposed  to  be  financed  entirely  through  redeployments  of 
amounts  initially  earmarked  for  the  European  Defence  Industry  Reinforcement  through  common 
Procurement  Act  (EDIRPA)  as  per  the  legislative  financial  statement  (LFS)  accompanying  ASAP. 
The corresponding amounts are proposed to be entered into the reserve (the ‘provisions’ title) until the 
basic act is adopted by the co-legislators. Should the co-legislators decide differently, the Commission 
will propose the necessary changes. Additionally, given the observed delay in the EDIRPA legislative 
process  compared  to  the  initial  assumptions,  it  is  proposed  to  return  the  corresponding  amount  in 
payment appropriations of EUR 71 million. 

Budget line 

Name 

Section III – Commission 
30 02 02 
30 02 01 
30 02 02 
30 02 02 
Total 

Differentiated appropriations (Reserve for budget article 13 06 01) 
Non-differentiated appropriations (Reserve for budget article 13 01 05) 
Differentiated appropriations (Reserve for budget article 13 06 01) 
Differentiated appropriations (Reserve for budget article 13 07 01) 

Commitment 
appropriations 

Payment 
appropriations 

EUR 

- 1 000 000 
+ 1 000 000 
- 156 027 699 
+ 156 027 699 
0 

- 1 000 000 
+ 1 000 000 
- 71 000 000 
0 
- 71 000 000 

16  

COM(2023) 237, 3.5.2023. 

10 

 
 
 
 
 
 
 
 
                                                           
3.2 

Financing of the European Chips Act for 2023 

The  Commission  proposes  to  include  in  DAB  3/2023  the  necessary  adjustments  in  relation  to  the 
financing  of  the  European  Chips  Act  for  2023,  on  which  a  political  agreement  between  the  co-
legislators was reached on 18 April 2023.  

The  total  contribution  of  Horizon  Europe  to  the  European  Chips  Act  until  2027  will  amount  to 
EUR 1 725 million, of which EUR 1 425 million will be implemented by the Chips joint undertaking 
and EUR 300 million by the European Innovation Council (EIC). With respect to the year 2023, the 
agreed financing solution for the Chips Act deviates from the elements included in the 2023 budget in 
the  following  aspects:  (i)  a  reinforcement  in  commitment  appropriations  of  the  Digital  Europe 
Programme  6th  objective  dedicated  to  semiconductors  of  EUR  100  million,  taken  from  the 
unallocated margin under the expenditure ceiling of heading 1 (Single Market, Innovation and Digital) 
and (ii) the return to Horizon Europe Cluster 4 “Digital, Industry and Space” of an amount of EUR 80 
million in  commitment appropriations, which was initially  proposed to  be  redeployed from  Horizon 
Europe to the Digital Europe Programme. 

Additionally,  the  Commission  proposes  a  more  balanced  contribution  to  the  European  Chips  Act 
amongst clusters of Horizon Europe. Compared to the initial Commission proposal, the 2023 envelope 
of the Chips Joint Undertaking is proposed to be slightly backloaded to 2026-2027. Accordingly, an 
amount of EUR 15,2 million is proposed to be returned from the Chips Joint Undertaking to Horizon 
Europe Cluster 3 “Civil Security for Society” in this DAB. 

The current level of payment appropriations in the 2023 budget is considered sufficient to cover this 
year’s  payment  needs  under  both  Horizon  Europe  and  the  Digital  Europe  programme,  therefore  the 
corresponding amount in payment appropriations (EUR 80 million) is proposed to be cancelled. 

The overall impact on expenditure is therefore as follows: 

Budget line 

Name 

Section III – Commission 
01 02 02 30 
01 02 02 42 
02 04 06 11 
02 04 06 11 
01 02 02 40 
Total 

Cluster ‘Civil Security for Society’ 
Cluster ‘Digital, Industry and Space’ — Chips Joint Undertaking 
Semiconductors – Chips Joint Undertaking 
Semiconductors – Chips Joint Undertaking 
Cluster ‘Digital, Industry and Space’ 

Commitment 
appropriations 

Payment 
appropriations 

EUR 

+ 15 200 000 
- 15 200 000 
+ 100 000 000 
- 80 000 000 
+ 80 000 000 
100 000 000 

0 
- 15 200 000 
0 
- 80 000 000 
0 
- 95 200 000 

3.3 

Sustainable Fisheries Partnership Agreements (SFPA) reserve line 

The  SFPA  reserve  line  currently  amounts  to  EUR  48,7  million  in  commitment  appropriations  and 
EUR 28,2 million in payment appropriations. This corresponds to the amount entered into the reserve 
to  cover  for  the  agreements  and  protocols  with  regard  to  fisheries  between  the  Union  and  the 
governments  of  specific  third  countries  that  are  not  yet  adopted,  in  line  with  Article  49  of  the 
Financial Regulation and with point 20 of the Interinstitutional Agreement on budgetary discipline, on 
cooperation  in  budgetary  matters  and  on  sound  financial  management,  as  well  as  on  new  own 
resources, including a roadmap towards the introduction of new own resources17.  

Considering the status of the negotiations on the future protocols, it is clear that none of the protocols 
with Morocco, Liberia and Solomon Islands will start or be concluded in 2023. In particular: 

17  

OJ L 433I , 22.12.2020, p. 28–46. 

11 

 
 
 
 
 
                                                           
 

 

the  future  of  the  protocol  with  Morocco  remains  uncertain  and  depends  on  the  forthcoming 
judgment of the Court of Justice in the pending case C-798/21 P, Council v Front Polisario, 
which is now not expected before early 2024; 

the  negotiations  with  Liberia  depend  on  the  development  and  eventual  closure  of  the  open 
dialogue between the Commission and the Liberian authorities in the framework of the fight 
against illegal, unreported and unregulated fishing (IUU). Upon positive conclusion of the IUU 
dialogue, negotiations would not start before 2024; 

 

the negotiation process for a new protocol with Solomon Islands has been delayed. 

Finally, given that the quantity for capelin fish related to the current protocol with Greenland has been 
agreed and established, the amount on the main line is sufficient and the corresponding  reserve is no 
longer needed. 

The  Commission  therefore  proposes  to  cancel  the  amounts  that  will  not  be  needed  in  2023.  This 
corresponds to respectively EUR 45,3 million in commitment appropriations and EUR 24,8 million in 
payment appropriations, as follows: 

Budget line 

Name 

Section III – Commission 
30 02 02 
Total 

Differentiated appropriations (Reserve for budget article 08 05 01) 

3.4 

EUROPEAN DATA PROTECTION SUPERVISOR (EDPS) 

Commitment 
appropriations 

Payment 
appropriations 

EUR 

- 45 265 000 
- 45 265 000 

- 24 765 000 
- 24 765 000 

A reinforcement of the EDPS budget by EUR 81 857 is proposed to cover the rent, charges and other 
expenditure for the EDPS building facilities, which are hosted by the European Parliament. Now that 
the European Parliament has confirmed the actual costs for 2023, i.e. an increase of 10,63 % due to 
high  inflation,  the  level  of  appropriations  available  is  no  longer  sufficient  to  cover  contractual 
obligations. Therefore, it is proposed to increase the level of commitment and payment appropriations 
by EUR 81 857 as shown in the table below, to be taken from the margin under heading 7 (European 
Public Administration): 

Budget line 

Name 

Section IX – European Data Protection Supervisor 
2 0 0 
Total 

Rents, charges and buildings expenditure 

Commitment 
appropriations 

Payment 
appropriations 

EUR 

81 857 
81 857 

81 857 
81 857 

12 

 
 
 
 
 
 
 
 
4. 

FINANCING 

Overall, the net impact of DAB 3/2023 on expenditure amounts to an increase of EUR 54,8 million in 
commitment  appropriations  and  a  decrease  of  EUR  190,9  million  in  payment  appropriations.  The 
revenue side of the budget is proposed to be adjusted as set out in this DAB 3/2023.  

13 

 
 
 
 
5. 

SUMMARY TABLE BY MFF HEADING 

Budget 2023 (incl. AB1/2023 and 
DAB 2/2023) 

Draft Amending Budget 
3/2023 

Budget 2023 (incl. AB 1/2023 
and DABs 2-3/2023) 

CA 

PA 

CA 

PA 

CA 

PA 

1. 

Single Market, Innovation and Digital 

21 595 056 589 

20 898 092 074 

100 000 000 

-95 200 000 

21 695 056 589 

Of which under Flexibility Instrument 

Ceiling 

21 727 000 000 

Margin 

131 943 411 

-100 000 000 

2. 

Cohesion, Resilience and Values 

70 586 704 063 

58 058 661 399 

Of which under Flexibility Instrument 

182 220 073 

Of which under Single Margin Instrument 
11(1)(a) 

280 000 000 

Ceiling 

70 137 000 000 

Margin 

12 516 010 

2a.  Economic, social and territorial cohesion 

62 926 483 990 

50 874 959 229 

Of which under Flexibility Instrument 

Ceiling 

62 939 000 000 

Margin 

12 516 010 

2b.  Resilience and values 

7 660 220 073 

7 183 702 170 

Of which under Flexibility Instrument 

182 220 073 

Of which under Single Margin Instrument 
11(1)(a) 

280 000 000 

Ceiling 

7 198 000 000 

Margin 

21 727 000 000 

31 943 411 

70 586 704 063 

182 220 073 

280 000 000 

70 137 000 000 

12 516 010 

62 926 483 990 

62 939 000 000 

12 516 010 

7 660 220 073 

182 220 073 

280 000 000 

7 198 000 000 

3. 

Natural Resources and Environment 

57 263 408 225 

57 457 310 265 

-45 265 000 

-24 765 000 

57 218 143 225 

Of which under Flexibility Instrument 

Ceiling 

57 295 000 000 

Margin 

31 591 775 

45 265 000 

Of  which:  Market  related  expenditure 
and direct payments 

40 692 211 

40 698 181 356 

EAGF sub-ceiling 

41 518 000 000 

 Rounding difference excluded for 
calculating the sub-margin 

800 000 

 Net transfers between EAGF and EAFRD 

-825 800 000 

 Net balance available for EAGF 
expenditure (sub-ceiling corrected by 
transfers between EAGF and EAFRD) 

40 693 000 000 

EAGF sub-margin 

789 000 

4.  Migration and Border Management 

3 727 311 518 

3 038 380 252 

Of which under Flexibility Instrument 

Ceiling 

3 814 000 000 

Margin 

86 688 482 

57 295 000 000 

76 856 775 

40 692 211 

41 518 000 000 

800 000 

-825 800 000 

40 693 000 000 

789 000 

3 727 311 518 

3 814 000 000 

86 688 482 

5. 

Security and Defence 

2 116 636 829 

1 208 374 612 

-71 000 000 

2 116 636 829 

Of which under Flexibility Instrument 

170 636 829 

Ceiling 

1 946 000 000 

Margin 

6. 

Neighbourhood and the World 

17 211 879 478 

13 994 937 845 

Of which under Flexibility Instrument 

882 879 478 

Ceiling 

16 329 000 000 

Margin 

14 

170 636 829 

1 946 000 000 

17 211 879 478 

882 879 478 

16 329 000 000 

20 802 892 
074 

58 058 661 
399 

50 874 959 
229 

7 183 702 
170 

57 432 545 
265 

40 698 181 
356 

3 038 380 
252 

1 137 374 
612 

13 994 937 
845 

 
 
 
  
 
 
 
  
  
  
  
  
  
  
 
  
  
  
  
  
 
  
  
  
  
 
  
  
 
  
  
  
  
  
 
  
  
  
  
  
 
  
  
  
  
  
 
  
  
  
  
  
 
  
  
 
  
  
  
  
  
  
  
 
  
  
  
  
  
 
  
  
  
  
  
 
  
  
 
  
  
  
  
  
 
  
  
  
  
  
 
  
  
  
  
  
 
  
  
  
  
  
  
  
 
 
  
  
  
  
  
  
  
 
  
  
  
  
  
 
  
  
  
  
 
  
  
  
 
  
  
  
  
  
 
  
  
  
  
  
 
  
  
  
  
  
 
  
  
  
  
  
 
  
  
  
  
  
 
  
  
 
  
  
  
  
  
  
  
 
  
  
  
  
  
 
  
  
  
  
  
 
  
 
  
  
  
  
  
 
  
  
  
  
  
 
  
  
  
  
  
  
  
 
  
  
 
  
  
  
  
  
 
  
  
  
  
  
 
  
  
  
  
  
  
  
 
7. 

European Public Administration 

11 313 119 518 

11 313 119 518 

81 857 

81 857 

11 313 201 375 

Of which under Flexibility Instrument 

Ceiling 

11 419 000 000 

Margin 

105 880 482 

-81 857 

11 419 000 000 

105 798 625 

of which: Administrative expenditure of 
the institutions 

8 745 600 042 

8 745 600 042 

81 857 

81 857 

8 745 681 899 

Sub-ceiling 

8 772 000 000 

Sub-margin 

26 399 958 

Appropriations for headings 

Ceiling  

183 814 116 
220 
182 667 000 
000 

165 968 875 
965 
168 575 000 
000 

-81 857 

54 816 857 

-190 883 143 

8 772 000 000 

26 318 101 

183 868 933 
077 
182 667 000 
000 

11 313 201 
375 

8 745 681 
899 

165 777 992 
822 
168 575 000 
000 

Of which under Flexibility Instrument 

1 235 736 380 

948 114 733 

1 235 736 380 

948 114 733 

Of which under Single Margin 
Instrument 11(1)(a) 

280 000 000 

280 000 000 

Margin 

368 620 160 

3 554 238 768 

-54 816 857 

190 883 143 

313 803 303 

Thematic special instruments 

2 855 153 029 

2 679 794 000 

Total appropriations  

186 669 269 
249 

168 648 669 
965 

54 816 857 

-190 883 143 

2 855 153 029 

186 724 086 
106 

3 745 121 
911 
2 679 794 
000 
168 457 786 
822 

15