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 2023
Date: 2024-06-25
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, 25.6.2024  COM(2024) 272 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 2023  
 
 
CONTENTS 

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

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

NOTE ACCOMPANYING THE CONSOLIDATED ACCOUNTS .................................... 35 

CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES ................. 36 

BALANCE SHEET ...................................................................................... 38 

STATEMENT OF FINANCIAL PERFORMANCE ................................................... 39 

CASHFLOW STATEMENT ............................................................................ 40 

STATEMENT OF CHANGES IN NET ASSETS ................................................... 41 

NOTES TO THE FINANCIAL STATEMENTS ..................................................... 42 

BUDGETARY IMPLEMENTATION REPORTS AND EXPLANATORY NOTES ................ 137 

GLOSSARY ............................................................................................... 202 

LIST OF ABBREVIATIONS ........................................................................... 206 

 
 
 
 
 
 
FOREWORD 

The  year  2023  once 
again  confirmed  that 
European  unity  and 
solidarity  are 
the 
European 
Union’s 
strongest  assets.  We 
continued  to  stand 
by  our  partners  in 
and 
Ukraine 
in 
supported 
their 
to 
Russia’s  brutal  war 

them 
response 

and continued aggressions.  

To mitigate the consequences of the war and of 
other global political developments, we proposed 
a Mid-Term Revision of the Multiannual Financial 
Framework  concentrating  on  the  most  pressing 
political priorities:  

-  Strong  and  stable  support  to  Ukraine  in  the 

form of the Ukraine Facility,  

- 

fostering  European  competitiveness  through 
the  Strategic  Technologies 
for  Europe 
Platform,  

-  means to respond to migration and external 

challenges,  

- 

- 

increased resources for crisis management, 

robust  mechanism 

 a 
repayment  of  NextGenerationEU 
under increased interest rates.  

to  ensure 

the 
lending 

Through  a  mix  of  redeployments  within  the  EU 
budget  and  additional  resources,  EU  leaders 
the 
endorsed  all 
Commission  had  identified  on  1  February  2024 
at a special European Council. 

the  political  priorities 

2023 also saw a strong continuation of the EU’s 
borrowing  and  lending  activities.  An  additional 
EUR  110.5  billion  were  raised  on  financial 
markets for EU policy programmes and financial 
assistance to third countries. This allowed the EU 
to provide Ukraine with EUR 18 billion support in 
monthly  tranches  of  EUR  1.5  billion  to  ensure 
public  services  in  the  country  can  continue  to 
serve their citizens.  

NextGenerationEU  continued  to  drive  the  green 
and  digital  transition  of  the  EU.  The  mid-term 
evaluation  of  the  Recovery  and  Resilience 
Facility  showed  that  it  had  helped  1.3  million 
Europeans  find  a  job.  Member  States’  Recovery 
the 
and  Resilience  Plans  have  exceeded 
minimum targets for digital and green spending, 
and more than 1150 milestones and targets had 
already been fulfilled. 

In  addition  to  crisis  response  and  related 
activities, the EU budget continued to deliver on 
its overall policy objectives. The third year of the 
current  MFF  2021-2027  saw  commitment 
implementation  amounting  to  EUR  332.3  billion 
–  making  the  best  use  of  the  available  annual 
budget. 

The  EU  budget  continues  to  be  the  concrete 
expression  of  European  solidarity  both  among 
EU Member States and towards our international 
partners.  It  is  my  pleasure  to  present  the  2023 
annual  accounts  of  the  European  Union  which 
lay out its impact in detail. The accounts provide 
a  full  overview  of  the  EU  finances,  including 
information  on  contingent  liabilities,  financial 
commitments,  and  other  obligations  of  the 
Union,  as  well  as  on  the  implementation  of  the 
EU  budget  for  the  past  year.  The  consolidated 
annual accounts of the European Union are part 
of  the  Commission’s  integrated  financial  and 
accountability  reporting  package  and  form  an 
essential part of our highly developed system of 
fiscal transparency and accountability. 

Johannes Hahn 

Commissioner for Budget and Human 
Resources  

 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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 2023 

CONTENTS 

1. 

2. 

3. 

4. 

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

THE 2021-2027 MULTIANNUAL FINANCIAL FRAMEWORK, NextGenerationEU 
and support to Ukraine .......................................................................... 7 

NGEU Implementation ......................................................................... 10 

BUDGETARY CONTINGENT LIABILITIES .................................................. 13 

4.1. Borrowing and lending activities ........................................................... 13 

4.2. Budgetary guarantees ........................................................................ 18 

4.3. Common Provisioning Fund .................................................................. 19 

5. 

FINANCIAL STATEMENTS ANALYSIS ....................................................... 20 

5.1. Revenue ........................................................................................... 20 

5.2. Expenses .......................................................................................... 21 

5.3. Assets .............................................................................................. 22 

5.4. Liabilities .......................................................................................... 25 

6. 

SUMMARY OF BUDGET IMPLEMENTATION ............................................... 27 

6.1. Revenue ........................................................................................... 27 

6.2.Expenditure ....................................................................................... 28 

7. 

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

7.1.Political and financial framework ........................................................... 31 

7.2.Governance and accountability .............................................................. 32 

4 

 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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 2023  EU consolidated financial  statements were  particularly marked  by  an increase of 
borrowings due to the continued implementation of NextGenerationEU, 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 

2023 

285.4 

91.7 

35.2 

39.6 

15.8 

467.7 

90.8 

458.4 

50.5 

76.8 

3.3 

679.8 

EUR billion 

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 

1.1 

(213.2) 

(212.2) 

1.3 

(132.6) 

(131.3) 

 see Financial Statement Analysis, section 5 

5 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Key developments in 2023 

 Continuing the successful track record of issuing EU-Bonds, EU-Bills and NGEU Green Bonds 

 Delivering on the NGEU objectives 

   Providing financial assistance to Ukraine 

 see section 4   

 see section 3       

 see section 4  

6 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

2. 

THE 2021-2027 MULTIANNUAL FINANCIAL 
FRAMEWORK, NextGenerationEU and support 
to Ukraine 

The EU’s 2021-2027 long-term budget, together with the NextGenerationEU (NGEU) recovery instrument, 
as adopted, 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  an  initial  amount  of  up  to  EUR  806.9  billion  in  current  prices 
(EUR  750  billion  in  2018  prices).  This  initial  amount  has  been  adjusted  to  EUR  712  billion,  as  the  total 
available loan support was not fully requested by the Member States. 

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%. 

Revision of the EU budget 2021-2027  

Since the adoption of the 2021-2027 long-term EU budget in 2020, the EU has faced unprecedented and 
unforeseen  crises:  from  Russia’s  war  of  aggression  against  Ukraine  and  its  consequences,  to  the 
acceleration of inflation and interest rates, to migration and external challenges such as the Middle East 
Conflict.  Tackling  these  multiple  challenges  has  stretched  the  resources  of  the  EU  budget  to  the  limit, 
hampering  its  ability  to  address  even  the  most  pressing  challenges.  To  ensure  that  the  EU  budget  can 
continue to deliver on its key objectives, the European Commission proposed in June 2023 to strengthen 
the EU's long-term budget. 

7 

 
 
Annual accounts of the European Union 2023 

On 1 February 2024, EU leaders endorsed all the priorities of the Commission’s proposal and agreed on 
the  first-ever  revision  of  the  EU's  long-term  budget  –  which  was  also  approved  by  the  European 
Parliament on 27 February 2024. The key elements include: 

•  Critical support for Ukraine: A new Ukraine Facility, based on grants, loans, and guarantees, with 
a  total  capacity  of  EUR  50  billion  over  the  period  2024-2027,  will  address  Ukraine's  immediate 
needs, reconstruction, and modernisation on its path towards the EU. 

•  Strengthening  sovereignty  and  competitiveness:  The  Strategic  Technologies  for  Europe  Platform 
(STEP)  will  boost  the  EU's  long-term  competitiveness  in  critical  technologies,  digital  and  deep 
tech,  clean  tech,  and  biotech,  with  new  flexibilities  and  incentives  for  cohesion  funding  and  the 
Recovery and Resilience Facility, and a EUR 1.5 billion top-up to the European Defence Fund. 

• 

Further  action  on  Migration  and  external  challenges:  An  increase  of  EUR  9.6  billion  will  support 
the  internal  and  external  dimensions  of  migration  and  help  partners  in  the  Western  Balkans, 
southern neighbourhood and beyond. 

•  Stronger  response  to  unforeseen  crisis:  To  enable  the  EU  budget  to  continue  to  respond  to 
unforeseen circumstances – such as the energy crisis,  food crises and the aftermath of Russia’s 
war  amid  rising  inflation  and  interest  costs  –  the  Flexibility  Instrument  will  be  reinforced  by 
EUR 2 billion while the ceiling of the Emergency Aid Reserve will be increased by EUR 1.5 billion 
and split into two separate instruments: the European Solidarity Reserve and the Emergency Aid 
Reserve. 

•  More  crisis  resilience:  A  three-step  emergency  mechanism  and  a  new  instrument  will  provide 
clarity on the budgetary mechanisms for financing the costs associated with NextGenerationEU. 

• 

The  revision  will  be  financed  through  a  combination  of  new  resources  and  redeployment  within 
the  EU  budget.  This  will  allow  the  EU  to  continue  to  address  the  most  pressing  priorities  while 
minimising the impact on national budgets, to the benefit of European citizens and beyond. 

The  revision  entered  into  force  on  1  March  2024  and  applies  retroactively  to  the  EU  budget  since 
1 January 2024. 

NextGenerationEU 

With an initial budget of up to 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. The 
majority of the funds are 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. The deadline 
for Member States to request loans expired in August 2023, meaning that EUR 94.9 billion of loans can 
no longer be disbursed. As a result, the total amount for loans is now EUR 290.9 billion, and the adjusted 
total envelope for non-repayable support and loans EUR 712 billion. These loans will be repaid by those 
Member  States  starting  only  after  the  current  MFF  period  and  extending  over  a  long  time  period  (from 
2032  to  2053,  see  section  3.1.3).  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. 

In addition, RRF grants are now supplemented by the inclusion of REPowerEU measures, also financed by 
Emissions  Trading  Scheme  (ETS)  revenues  and  Brexit  Adjustment  Reserve  (BAR)  allocations,  together 
with NGEU allocations. For NGEU loans, EUR 290.9 billion has been requested by Member States in total 
which  includes  REPowerEU  elements.  Please  see  section  3  for  further  detailed  information  on the  NGEU 
implementation and section 4 on the borrowing via the Unified funding approach. 

8 

 
Support to Ukraine 

Annual accounts of the European Union 2023 

Since the beginning of Russia’s war of agression against Ukraine, the EU budget has massively stepped 
up  to  support  the  EU’s  crisis  response  in  Ukraine  on  all  fronts.  More  concretely,  in  a  ‘Team  Europe’ 
approach, the EU, its Member States and financial institutions, had by the end of 2023 together mobilised 
over  EUR  88  billion  in  overall  support  for  Ukraine  and  its  people,  in  a  clear  expression  of  the  EU’s 
continued solidarity. This includes: 

•  EUR 43.3 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  (of  which, 
EUR  25.2  billion  in  new  macro-financial  assistance  loans  to  support  Ukraine’s  economy,  fully 
disbursed at the end of 2023);  

•  EUR  28  billion  in  military  assistance  provided  directly  by  EU  Member  States,  including  EUR  6.1 

billion through the European Peace Facility (this support is not part of the EU budget); and 

•  EUR 17 billion made available by the EU and its Member States to support people fleeing Ukraine. 

In  addition,  the  new  Ukraine  Facility  stands  as  a  dedicated  financing  instrument  to  provide  coherent, 
predictable as well as flexible support to Ukraine foreseeing up to EUR 50 billion from 2024 to 2027, of 
which  EUR  33  billion  in  loans  and  EUR  17  billion  in  non-repayable  support,  to  help  Ukraine  resist  the 
aggression and rebuild a modern, prosperous country. 

9 

 
 
Annual accounts of the European Union 2023 

3.  NGEU Implementation 

3.1.1.  Overview 

Up to year-end 2023, the Commission disbursed a total of EUR 263.1 billion of financial support (2022: 
EUR  162.0  billion).  The  majority  of  this  amount,  EUR  220.8  billion,  was  disbursed  under  the  RRF 
(including  support  for  REPowerEU  reforms  and  investments),  with  EUR  141.6  billion  disbursed  as  non-
repayable support and EUR 79.2 billion disbursed as financial loan support. A further EUR 42.3 billion (net 
of recoveries of EUR 1.0 billion) was disbursed as MFF payments under existing programmes. 

3.1.2.  Disbursements of non-repayable support under the RRF/REPowerEU 

The total non-repayable support approved and legally committed under the 27 Member States’ recovery 
and  resilience  plans  amounts  to  EUR  356.8  billion.  Out  of  this  amount,  EUR  337.9  billion  relates  to  the 
original  RRF  allocation.  The  remaining  amount  of  EUR  18.9  billion  comprises  the  allocations  from  the 
Emissions  Trading  Scheme  (ETS)  of  EUR  17.3  billion  and  the  transfers  from  the  Brexit  Adjustment 
Reserve of EUR 1.6 billion, both of which will be used to support REPowerEU reforms and investments. In 
the case of Spain and Portugal, the remaining part of the original RRF allocation, amounting to EUR 2.6 
billion and EUR 0.1 billion respectively, will also be used to support REPowerEU reforms and investments. 
The budgetary commitments at 31 December 2023 amounted to EUR 356.4 billion. 

By year-end 2023, the Commission had disbursed a total of EUR 141.6 billion of non-repayable support to 
23  Member  States  (2022:  EUR  93.5  billion  to  22  Member  States).  With  EUR  139.9  billion,  almost  all  of 
this amount related to milestone and target payments under the RRF. The remainder of EUR 1.7 billion 
was disbursed as pre-financing under REPowerEU:  

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 

Total 
value of 
grants* 

of which 
RRF 
allocation 

of which 
ETS/BAR 
allocation 

4.0 

5.0 

5.7 

5.8 

1.0 

8.4 

1.6 

1.0 

1.9 

40.3 

28.0 

18.2 

6.5 

0.9 

71.8 

2.0 

2.3 

0.1 

0.3 

5.4 

25.3 

16.3 

13.6 

6.4 

1.6 

79.9 

3.4 

3.8 

4.5 

5.7 

5.5 

0.9 

7.7 

1.4 

0.9 

1.8 

37.4 

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 

0.2 

0.5 

- 

0.3 

0.1 

0.7 

0.2 

0.1 

0.1 

2.8 

- 

0.8 

0.7 

- 

2.8 

0.1 

0.2 

- 

0.1 

0.7 

2.8 

0.8 

1.4 

0.4 

0.1 

2.6 

0.3 

Budgetary 
commitments 
31.12.2023† 
4.0 

4.9 

5.7 

5.8 

1.0 

8.4 

1.6 

1.0 

1.9 

40.3 

28.0 

18.2 

6.5 

0.9 

71.8 

2.0 

2.3 

0.1 

0.3 

5.3 

25.3 

16.3 

13.6 

6.4 

1.6 

79.9 

3.4 

Disbursed 
under 
RRF 

Disbursed 
under 
REPowerEU 

EUR billion 

Total  
disbursed  
31.12.2023 

1.1 

0.8 

1.4 

2.9 

0.2 

1.8 

0.5 

0.4 

0.3 

22.8 

6.2 

7.4 

- 

- 

41.0 

0.4 

0.8 

0.0 

0.1 

- 

- 

5.9 

5.5 

2.6 

0.5 

37.0 

- 

0.0 

- 

- 

- 

- 

0.1 

0.0 

0.0 

- 

0.6 

- 

- 

- 

- 

- 

- 

0.0 

- 

0.0 

- 

0.6 

0.2 

- 

0.1 

0.0 

- 

- 

1.7 

1.2 

0.8 

1.4 

2.9 

0.2 

2.0 

0.5 

0.4 

0.3 

23.4 

6.2 

7.4 

- 

- 

41.0 

0.4 

0.9 

0.0 

0.1 

- 

0.6 

6.1 

5.5 

2.7 

0.5 

37.0 

- 

141.6 

356.8 

337.9 

18.9 

356.4 

139.9 

10 

 
 
 
 
 
 
 
 
 
 
Notes to table on previous page: 

Annual accounts of the European Union 2023 

*  Amounts corresponding to the financial allocation after deduction of the Member State’s proportional share of the 
expenses referred to in Article 6(2) of Regulation (EU) 2021/241, calculated in accordance with the methodology 
set out in Article 11 and Annex IVa of that Regulation. 

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

before 2023. Out of the total budgetary commitments EUR 122.0 billion was committed in 2023. 

†† In the case of Spain and Portugal, an amount of EUR 2.6 billion and EUR 0.1 billion, respectively, of the original 

RRF allocation will be used to support REPowerEU reforms and investments. 

During 2023 the Commission disbursed non-repayable support totalling EUR 48.0 billion (2022: EUR 47.2 
billion). This amount mainly comprised the RRF milestone and target payments to Italy (third and fourth 
payments: EUR 12.0 billion), France (second payment: EUR 10.3 billion), Spain (third payment: EUR 6.0 
billion), Germany (first payment: EUR 4.0 billion), Portugal (second, third and fourth payments: EUR 3.6 
billion),  Greece  (second  and  third  payments:  EUR  3.4  billion)  and  Romania  (second  payment:  EUR  1.9 
billion). 

3.1.3.  Disbursements of loans under the RRF/REPowerEU 

The total financial loan support approved under the plans amounts to EUR 290.9 billion (2022: EUR 165.3 
billion). The whole amount is covered by signed loan agreements (2022: EUR 153.9 billion). 

By  year-end  2023,  the  Commission  had  disbursed  EUR  79.2  billion  of  financial  loan  support  to  nine 
Member  States  (2022:  EUR  45.2  billion  to  five  Member  States).  Out  of  this  amount,  EUR  73.8  billion 
related  to  financial  loan  support  provided  under  the  RRF  (2022:  EUR  45.2  billion)  and  EUR  5.4  billion 
related to financial loan support provided under REPowerEU (2022: n. a.): 

Member 
State 

Belgium 

Croatia 

Cyprus 

Czechia 

Greece 

Hungary 

Italy 

Lithuania 

Poland 

Portugal 

Romania 

Slovenia 

Spain 

Total 

Total 
granted 

of which 
RRF 
support 

of which 
REPowerEU 
support 

Total  
signed at 
31.12.2023 

 Disbursed 
for RRF 
 31.12.2023 

Disbursed for 
REPowerEU 
31.12.2023 

EUR billion 
Total 
outstanding 
at 31.12.2023 

0.3 

4.3 

0.2 

0.8 

17.7 

3.9 

122.6 

1.6 

34.5 

5.9 

14.9 

1.1 

83.2 

0.0 

1.6 

0.2 

0.8 

17.7 

0.0 

114.2 

1.0 

12.0 

5.9 

14.4 

1.1 

81.5 

0.2 

2.6 

- 

- 

- 

3.9 

8.4 

0.5 

22.5 

- 

0.6 

- 

1.7 

0.3 

4.3 

0.2 

0.8 

17.7 

3.9 

122.6 

1.6 

34.5 

5.9 

14.9 

1.1 

83.2 

- 

- 

0.0 

- 

7.3 

- 

60.9 

- 

- 

1.7 

3.6 

0.3 

- 

- 

- 

- 

- 

- 

0.8 

- 

0.1 

4.5 

- 

- 

- 

- 

- 

- 

0.0 

- 

7.3 

0.8 

60.9 

0.1 

4.5 

1.7 

3.6 

0.3 

- 

290.9 

250.4 

40.5 

290.9 

73.8 

5.4 

79.2 

During  2023  the  Commission provided  new  financial  loan  support  of  EUR  34.1  billion,  out  of  which  EUR 
28.7 billion were RRF loan instalments following the fulfilment of milestones and targets. Another EUR 5.4 
billion  were  disbursements  for  REPowerEU  loans  pre-financing.  The  main  disbursements  were  the  third 
and  fourth  RRF  instalments  to  Italy  (EUR  23  billion),  the  REPowerEU  pre-financing  to  Poland  (EUR  4.5 
billion) and the second and third RRF instalments to Greece (EUR 3.8 billion). 

According to the loan agreements, the Member States will repay annually 5% of the disbursed amounts 
starting ten years after the disbursement date. This results in a repayment period from 2032 to 2053. 

11 

 
 
 
 
 
 
 
 
 
 
 
 
 
3.1.4.  NGEU contributions to other programmes under the EU budget 

Annual accounts of the European Union 2023 

By  year-end  2023,  the  total  net  payments  disbursed  to  other  programmes  under  the  MFF  amounted  to 
EUR 42.3 billion (2022: EUR 23.3 billion). This contribution, which is net of recoveries of EUR 1.0 billion 
(2022: 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 

Total  
net commitments  
31.12.2023 
50.6 

30.0 

20.6 

10.9 

8.1 

6.1 

5.4 

2.0 

83.1 

30.0 

20.6 

10.8 

8.1 

6.1 

5.4 

2.0 

82.9 

EUR billion 
Total 
net payments 
31.12.2023 
31.4 

20.9 

10.4 

0.3 

3.3 

2.6 

3.8 

0.9 

42.3 

During  2023,  the  Commission  disbursed  payments  to  other  MFF  programmes  totalling  EUR  19.0  billion. 
This  amount  comprised  the  payments  relating  to  REACT-EU  (EUR  13.1  billion,  of  which  EUR  7.3  billion 
under the ERDF and EUR 5.8 billion under the ESF, including FEAD), Rural Development (EUR 2.0 billion), 
Horizon Europe (EUR 1.9 billion), InvestEU (EUR 1.2 billion), RescEU (0.6 billion) and the Just Transition 
Fund (0.1 billion). 

12 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

4.  BUDGETARY CONTINGENT LIABILITIES 

In  the  recent  years,  the  EU  has  increasingly  used  financial  instruments  (such  as  loans,  guarantees  and 
equity  investments),  as  a  means  to  implement  its  policies  and  pursue  EU  objectives.  For  example,  the 
loans by the EU to its Member States or partner countries aim at restoring financial stability or promoting 
economic recovery from crisis situations. The main objective of the EU guarantee programmes is boosting 
investments and enhancing access to finance to address market failures in the key policy areas. 

When the EU provides support in the form of loans or guarantees, it expects a high value added from its 
financial  contribution.  This  is  because,  in  contrast  to  traditional  non-repayable  methods  of  budget 
implementation  such  as  giving  grants  or  subsidies,  for  each  euro  spent  from  the  EU  budget  the  final 
beneficiary  receives  more  than  the  nominal  amount  of  the  EU  financial  support  due  to  the  so-called 
leverage effect.  

While the EU expects that expenses incurred will be lower than the amount of funding provided, the EU 
budget may still incur losses, when some events - that are not fully in the control of the EU - occur. This 
is the case for the programmes where the EU undertakes borrowings to finance loans to Member States 
and  third  countries  (see  section  4.1  below)  and  when  it  issues  guarantees  to  financial  institutions  (see 
section 4.2 below). As losses due to non-repayment by final beneficiaries are not likely to materialise in 
full,  the  EU  does  not  hold  assets  for  the  entirely  of  those  potential  liabilities1,  but  only  up  to  the  level 
necessary  to  cover  expected  losses  and  a sufficient  safety  buffer  for  unexpected  losses.  Nevertheless, 
would  the  losses  occur  above  the  assets  provisioned,  they  would  be  covered  by  the  Member  States 
through future EU budgets. In this sense they create ‘budgetary contingent liabilities’ for the EU budget.  

The  EU  regularly  monitors  the  sustainability  of  its  contingent  liabilities  and  the  adequacy  of  the  assets 
provisioned held in the Common Provisioning Fund (CPF)2 (see section 4.3 below). 

At  the  end  of  2023,  the  EU  budgetary  contingent  liabilities  totalled  EUR  363.7  billion,  of  which 
EUR 255.4 billion  related  to  the  outstanding  loans  to  sovereigns  (EUR  254.1  billion  nominal  and 
EUR 1.3 billion  accrued  interest)  and  EUR 108.3  billion  to  the  maximum  amounts  (ceilings)  of  the 
guarantees issued. The assets provisioned amounted to EUR 19.0 billion. 

The EU also incurs other liabilities, which are not contingent in nature, but which – due to their long-term 
nature  -  will  only  be  financed  by  the  Member  States  through  future  budgets.  This  mainly  relates to  the 
pension  liability  (EUR  90.8  billion  as  at  31  December  2023)  and  to  the  NGEU  borrowings  that  financed 
RRF/REPowerEU  grants  and  some  other  MFF  programmes  (EUR  182.2  billion  as  at  31 December  2023, 
see sections 3.1.2 and 3.1.4). 

4.1.  Borrowing and lending activities  

4.1.1.  Borrowing 

The  Commission  borrows  by  issuing  securities  on  the  international  capital  markets.  The  EU  budget, 
ultimately, guarantees all the Commission borrowings. Until 2020, borrowings were used only to finance 
lending activities, see section 4.1.2. Following the introduction of the NGEU instrument, borrowings are 
now also used to finance non-repayable support, see section 3.1.2. 

1  Except  for  some  guarantees  provided  under  the  financial  instruments  programmes  of  previous  MFFs,  which  were 

fully financed or provisioned from EU budget. 

2  See  ‘Report from  the Commission  to  the  European  Parliament  and  the  Council  on financial  instruments,  budgetary 

guarantees, financial assistance and contingent liabilities’ issued annually by the Commission. 

13 

 
 
 
 
The funding approach 

Annual accounts of the European Union 2023 

Back to back 

Unified funding  

Until  2020,  the  Commission  was  following  a  ‘back  to  back’  approach,  issuing  a  single  bond  to  fund  a 
single  loan  agreement.  It  was  transferring  the  money  directly  to  the  beneficiary  country  on  the  same 
terms (interest rate, maturity). The timing, volume and maturity of bond issuances were determined by 
the needs of the beneficiary. 

For  the  NGEU  instrument,  the  Commission  uses  a  diversified,  pooled  funding  approach  where  the 
borrowings  are  not  directly  funding  specific  disbursements.  Instead,  the  debt  is  issued  according  to 
semi-annual funding plans, with long term bonds and short term bills. The Commission uses auctions and 
syndications  to  issue  these  securities.  It  then  passes  on  the  costs,  in  line  with  the  cost  allocation 
methodology agreed with Member States3, to the beneficiaries for the loans and to the EU budget for the 
non-repayable support. This pooled funding approach offers a more flexible and coherent borrowing and 
lending activity. It also offers better funding costs and allows the design of a better risk and compliance 
framework. This funding flexibility also requires a liquidity buffer for an efficient liquidity management. 

Following  the  amendment  of  the  Financial  Regulation  in  December  20224,  the  Commission  can  use  this 
approach  for  all  future  borrowings.  In  this  way,  the  MFA+  for  Ukraine  and  other  future  lending 
programmes can benefit from this flexible and cost-efficient debt management, creating a unified funding 
approach for all EU borrowings.  

During  2023,  the  Commission  outstanding  borrowings  increased  by  EUR  110.5  billion,  bringing  the 
nominal  outstanding  amount  to  EUR  458.5  billion  at  31  December  2023.  The  issuances  included 
EUR 48.9 billion  of  NGEU  Green  bonds.  These  issuances  are  underpinned  by  the  NGEU  Green  Bond 
Framework,  which  is  aligned  with  the  Green  Bond  Principles  of  the  International  Capital  Market 
Association  (ICMA)5.  Funds  raised  through  NGEU  green  bonds,  finance  climate-relevant  measures  from 
the national Recovery and Resilience plans (RRPs) under the Recovery and Resilience Facility (RRF). 

3  Commission Implementing Decision (EU) 2022/9701. 
4  Regulation (EU, Euratom) 2022/2434 of the European Parliament and of the Council of 6 December 2022 amending 
Regulation  (EU,  Euratom)  2018/1046  as  regards  the  establishment  of  a  diversified  funding  strategy  as  a  general 
borrowing method, OJ L 319, 13.12.2022, p. 1–4. 

5  European Commission, Directorate-General  for Budget, Green bonds  –  Impact  and  allocation  report  –  NGEU  report 

2023, Publications Office of the European Union, 2023, https://data.europa.eu/doi/10.2761/302803. 

14 

         SURE bond EFSM bond MFA bond EURATOM bond BOP bond SURE loan EFSM loan MFA loan BOP loan EURATOM loan BORROWINGS USE OF BORROWINGS Liquidity Buffer RRF/REPowerEU loans RRF/REPowerEU grants MFF programmes  MFA+ Unified funding  BORROWINGS USE OF BORROWINGS  
   
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

The table below shows the repayment schedule for the outstanding EU borrowings at 31 December 2023: 

UNIFIED 
FUNDING  

SURE 

EFSM 

MFA 

BOP  EURATOM 

EUR billion 

TOTAL 

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 

15.2 
18.0 
28.1 
16.9 
22.8 
17.7 
7.2 
20.0 
18.4 
9.5 
12.4 
- 
- 
18.4 
10.7 
- 
- 
16.0 
12.0 
7.0 
4.0 
- 
- 
- 
14.0 
- 
- 
14.0 
9.0 
10.3 

- 
8.0 
8.0 
- 
10.0 
8.2 
10.0 
- 
- 
- 
- 
8.5 
9.0 
8.7 
- 
- 
7.0 
- 
- 
- 
- 
- 
5.0 
6.0 
- 
- 
10.0 
- 
- 
- 

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 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 

0.6 
- 
0.1 
0.2 
0.2 
0.9 
0.1 
1.2 
0.7 
0.5 
0.7 
2.0 
1.3 
0.9 
0.3 
- 
0.5 
- 
2.0 
- 
- 
- 
- 
- 
- 
- 
- 
- 
0.5 
2.5 

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

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

18.4 
28.6 
42.4 
20.1 
35.4 
28.2 
17.4 
28.6 
22.1 
12.1 
13.1 
12.5 
16.0 
28.0 
12.8 
0.0 
7.5 
16.0 
17.0 
7.0 
4.0 
0.0 
5.0 
6.0 
14.0 
0.0 
10.0 
14.0 
9.5 
12.8 

Total 

301.6 

98.4 

42.8 

15.2 

0.2 

0.3 

458.5 

4.1.2. 

Lending 

The Commission provides bilateral loans in accordance with decisions of the European Parliament and of 
the Council. In 2023 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 (RRF and REPowerEU) see section 3.1.3. 

15 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At 31 December 2023, the nominal amount of the loans, were: 

Annual accounts of the European Union 2023 

Total signed 

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 
Ukraine – MFA+ 
Tunisia 
Jordan 
Other 

BOP 
Latvia 

EURATOM 
Energoatom and 
K2R4 – Ukraine 
Other 

NGEU LOANS  
Total 

SURE 

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 
18.0 
1.4 
1.1 
1.5 
34.2 

2.9 
2.9 

0.4 

0.4 
0.8 
290.9 
474.0 

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 
18.0 
1.4 
1.1 
1.4 
34.1 

2.9 
2.9 

0.4 

0.4 
0.8 
79.2 
262.2 

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

(2.0) 
(2.0) 
(4.0) 

(0.6) 
- 
- 
- 
(0.3) 
(0.9) 

(2.7) 
(2.7) 

(0.1) 

(0.4) 
(0.5) 
- 
(8.1) 

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 

20.5 
22.3 
42.8 

11.6 
18.0 
1.4 
1.1 
1.1 
33.2 

0.2 
0.2 

0.3 

0 
0.3 
79.2 
254.1 

SURE was established in 2020 to provide financial assistance to Member States who were experiencing, 
or were 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 availability of the instrument ended at 31 December 2022 and there are no pending disbursements. 
The maturity of loans varies between 5 and 30 years. 

16 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EFSM 

Annual accounts of the European Union 2023 

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  2023  loans  of  EUR  2.0  billion  to  Ireland  and  EUR  1.5  billion  to 
Portugal matured and were fully repaid. No maturity extentions occurred in 2023. 

MFA 

The MFA programme is a form of financial assistance extended by the EU to partner countries outside the 
EU experiencing a balance of payments crisis. 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 
Ukraine6,  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 loans to Ukraine varies between 10 to 30 years.  

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  the  EUR  18  billion  have  been  disbursed  in  2023.  The  MFA+  loans  are 
funded  through  the  unified  funding  approach,  whereas  all  previous  MFA  loans  were  funded  under  the 
back to back funding approach.  

At  the  end  of  2023,  the  total  MFA  loans  outstanding  to  Ukraine  amounted  to  EUR  29.6  billion  (nominal 
amount). 

On  29  February  2024,  the  European  Parliament  and  the  Council  adopted  Regulation  (EU)  2024/792 
establishing  the  Ukraine  Facility7.  This  new  instrument  covers  the  years  2024  to  2027  and  offers  up  to 
EUR 50 billion in financial support to Ukraine, including up to EUR 33 billion of sovereign loans. By 31 May 
2024,  EUR  6  billion  of  loans  have  been  disbursed  to  Ukraine.  The  Ukraine  Facility  sovereign  loans  are 
funded through borrowings following the unified funding approach. 

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 2023. The programme is expected to end in 2025 when the outstanding loan and the related 
borrowing are maturing. 

Euratom 

The  European  Atomic  Energy  Community  lends  money  to  both  Member  States  and  non-Member  States, 
and to entities of both, to finance projects relating to energy installations. 

6  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. 

7  Regulation  (EU)  2024/792  of  the  European  Parliament  and  of  the  Council  of  29  February  2024  establishing  the 

Ukraine Facility, OJ L, 2024/792, 29.2.2024, ELI: http://data.europa.eu/eli/reg/2024/792/oj. 

17 

 
 
 
 
Liquidity buffer  

Annual accounts of the European Union 2023 

Under  the  unified  funding  strategy,  a  certain  amount  of  proceeds  from  borrowings  are  kept  in  a  bank 
account with the European Central Bank. This liquidity buffer ensures that sufficient funds are available to 
meet all upcoming disbursments needs while avoiding excess balances. In managing this liquidity buffer 
the  Commission  takes  into  account  expected  disbursment  needs  and  the  opportunity  costs  of  cash 
balances. At year-end 2023 the funds held in the bank account amounted to EUR 12.5 billion. 

4.1.3.  System of protection 

Borrowings of the EU constitute direct and unconditional obligations of the EU and are guaranteed by the 
EU Member States. The borrowings undertaken to finance loans are intended to be repaid through timely 
collection  of  the  principal  and  interest  due  on  those  loans.  Nevertheless,  should  a  beneficiary  country 
default on or delay their repayments, there are number of safeguards to ensure service of the EU debt, 
which  are  summarised  in  the  table  below.  In  the  short  term,  the  borrowings  will  be  repaid  from  the 
available  treasury  balance  of  the  Commission.  Next,  borrowings  related  to  the  loans  to  third  countries 
(except for MFA+ loans to Ukraine) will be repaid from the assets held in the Common Provisioning Fund 
(CPF), while in case of the MFA+ loans and loans to Member States, the Commission may call additional 
resources from the Member States up to the available own resources margin (‘budgetary headroom’). For 
some  programmes,  there  are  also  guarantees  provided  by  the  Member  States.  As  a  consequence, 
investors are only exposed to the credit risk of the EU, not to that of the beneficiary of the loans. 

EU programme funded by borrowing 

System of protection 

NGEU (RRF and REPowerEU) 

SURE 

MFA (standard) 

Exceptional MFA to Ukraine 

MFA+ to Ukraine 

BOP 

EFSM 

Euratom loans to third countries 
(state-owned entities) 
Euratom loans to Member States 

Budgetary headroom under the temporary own resources 
ceiling of the EU budget – an extra 0.6% of EU GNI above the 
own resources ceiling of the EU budget of 1.4% of EU GNI 
Guarantee provided by all EU Member States (25%) + 
budgetary headroom under the own resources ceiling of the 
EU budget of 1.4% of EU GNI 
Common Provisioning Fund (9% of the loan to the third 
country) 
Common Provisioning Fund (9%) + guarantees by all EU 
Member States (61%) 
Budgetary headroom under the own resources ceiling of the 
EU budget of 1.4% of EU GNI 
Budgetary headroom under the own resources ceiling of the 
EU budget of 1.4% of EU GNI 
Budgetary headroom under the own resources ceiling of the 
EU budget of 1.4% of EU GNI 
Common Provisioning Fund (9% of the loan) and counter-
guarantees by third countries 
Budgetary headroom under the own resources ceiling of the 
EU budget of 1.4% of EU GNI 

4.2.  Budgetary guarantees 

Under  this  type  of  budget  implementation,  the  EU  provides  guarantees  to  financial  institutions 
(implementing  partners)  for  their  financing  (lending)  and  investment  (equity)  operations  to  pursue  its 
policy objectives. 

The EU has issued guarantees under the following programmes: 

•  External  lending  mandate  (ELM)  guarantees  granted  to  EIB  for  their  lending  operations  outside 

EU, mainly to sovereign and sub sovereign beneficiaries; 

•  European  Fund  for  Strategic  Investment  (EFSI)  guarantee  granted  to  the  EIB  Group  for  their 

operations supporting additional investment in the EU and access to finance for SMEs; 

• 

InvestEU guarantee provided to the EIB Group, EBRD and several national promotional banks in 
the EU Member States and EFTA countries, in order to mobilise private investments for the green 

18 

 
Annual accounts of the European Union 2023 

and digital transition, innovation and social investments and skills. The InvestEU guarantee may 
be increased by EFTA and Member States contributions and counter guarantees;  

•  External Action Guarantee under NDICI Regulation providing guarantees both to the EIB, for their 
financing and investments outside Europe, both to the public and private sector beneficiaries, as 
well as to several other counterparts, with the objective of promoting sustainable investments in 
the EU’s partner countries; 

•  European Fund for Sustainability Development (EFSD) guarantee issued to several counterparties 
with the aim to support investments in Africa and in the European Neighbourhood countries. 

As  at  31  December  2023,  the  nominal  outstanding  amount  of  those  guarantees  at  the  maximum  level 
granted to those financial institutions amounted to EUR 108.3 billion, of which EUR 66.2 billion relates to 
financing  or  investment  operations  signed  by  the  implementing  partners  (EFSD,  InvestEU  and  NDICI 
guarantees are still in the investment period, during which the partners can include new operations under 
the guarantee). 

The  Member  States  and  EEA  countries  may  also  contribute  to  the  InvestEU  programme. 
Until 31 December 2023, EU signed contribution agreements with those countries for EUR 2.3 billion, out 
of which EUR 1.7 billion relates to cash contributions and EUR 0.6 billion to counter-guarantees. 

4.3.  Common Provisioning Fund 

In order to satisfy any guarantee calls to cover losses incurred by the implementing partners in a timely 
manner, the EU provisions amounts from the budget. As of 2021, all assets provisioned  are held in the 
CPF, which functions as a single portfolio, with assets mainly invested in the debt securities. Currently, it 
combines  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  2023,  the  Commission  holds  EUR  18.8  billion  of  financial  assets  in  the  CPF  for  the 
following compartments: 

•  Guarantee  Fund  for  external  actions  –  EUR  2.8  billion  (covering  ELM  guarantees  as  well  as  pre-

2021 MFA and Euratom loans to third countries) 

•  EFSI – EUR 9.2 billion 

•  EFSD – EUR 0.7 billion 

• 

InvestEU  compartments  –  EUR  3.7  billion  (including  Member  State  and  EEA  countries  cash 
contributions) 

•  NDICI EFSD+ – EUR 2.2 billion 

•  MFA loans post-2020 – EUR 0.1 billion. 

In addition, EUR 106 million is held in the Commission central treasury as a liquidity buffer to cover for 
immediate guarantee calls. 

19 

 
 
Annual accounts of the European Union 2023 

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,  
Plastics own resources, Fines and Recovery of expenses) is as follows: 

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

*2020 to 2023 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. 

Main developments in 2023 

In  2023,  total  revenue,  comprising  all  revenue  categories,  amounted  to  EUR  171.9  billion,  compared  to 
EUR 171.2 billion in the previous year. The main developments explaining the increase of EUR 0.7 billion 
or 0.4% were:  

• 

Traditional own resources decreased from EUR 23.5 billion in 2022 to EUR 19.8 billion in 2023; 

•  VAT contributions have increased from EUR 19.7 billion in 2022 to EUR 22.5 billion in 2023;  

•  Revenue from GNI (gross national income), the primary element of the EU’s  operating revenue, 
decreased from EUR 103.9 billion in 2022 to EUR 101.3 billion in 2023. The decrease of EUR 2.6 
billion or 2.5% 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 increased by EUR 4.4 billion mainly due to increased interest earned (following 
increased interest rates since the end of 2022). 

20 

 
 
 
 
Annual accounts of the European Union 2023 

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 125.4 billion or 51.7% of the total expenses 
of EUR 242.5 billion incurred in 2023 (2022: EUR 114.8 billion, 43.6% 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 2023 

The  increase  of  expenses  under  the  shared  management  mode  is  mainly  due  to  increased  expenses 
relating  to  the  ERDF  and  Cohesion  Fund  (by  EUR  9.3  billion)  and  the  ESF  (by  EUR  3  billion),  as  the 
implementation of the new programming period starts to pick up speed. Expenses relating to the EAFRD 
and other rural development instruments and the EAGF decreased by EUR 1.5 billion and EUR 0.3 billion 
respectively.  The  decrease  of  EUR  1.5  billion  for  EAFRD  and  other  rural  development  instruments  is 
explained by delays in the implementation of the programmes, as 2023 was the first year of the new CAP 
strategic plans. 

Expenses  under  the  direct  management  mode,  which  represents  budget  implementation  by  the 
Commission,  executive  agencies  and  trust  funds,  decreased  from  EUR  94.0  billion  in  2022  to  EUR  61.9 
billion  in  2023.  The  decrease  of  EUR  32.1  billion  is  mainly  due  to  the  non-repayable  support  granted 
under  the  NGEU’s  RRF,  which  amounted  to  EUR  36.0  billion  (2022:  EUR  69.5  billion).  Despite  this 
significant decrease in RRF expenses, the implementation of the programmes was broadly on track, with 
progress on most milestones and targets in line with expectations. 

Expenses under the indirect management mode represent the budget implementation by EU agencies, EU 
bodies,  third  countries,  international  organisations  and  other  entities.  In  2023  the  expenses  under  the 
indirect management mode amounted to EUR 15.2 billion (2022: EUR 13.6 billion). The increase is mainly 
due to the increased expenses in the Research area. 

21 

 
 
 
 
Annual accounts of the European Union 2023 

5.3.  Assets 

As  at  31  December  2023  total  assets  amounted  to  EUR  467.7  billion  (2022:  EUR  445.9  billion)  –  the 
increase  is  due  to  further  lending  under  the  NGEU  instrument  and  new  loans  issued  to  Ukraine  under 
MFA+.  The  most  significant  assets  on  the  EU  balance  sheet  were  financial  assets  other  than  cash  and 
cash equivalents (EUR 285.4 billion), pre-financing (EUR 91.7 billion), receivables and recoverables (EUR 
35.2  billon)  and  cash  and  cash  equivalents  (EUR  39.6  billion).  Other  assets,  amounting  to  EUR  15.8 
billion, mainly included property, plant and equipment and intangible assets. 

Composition of assets at 31 December 2023  

The  increase  in  total  assets  of  EUR  21.9  billion  or  4.9%  from  the  previous  year  was  mainly  due  to  the 
following effects: 

• 

• 

Loans  outstanding  increased  from  EUR  204.4  billion  in  2022  to  EUR  246.9  billion  in  2023.  The 
increase  of  EUR  42.5  billion  or  20.8%  mainly  reflects  the  issuance  of  further  loans  to  Member 
States  under  the  RRF  and  REPowerEU  (EUR  34.1  billion)  and  new  loans  under  the  MFA+ 
programme  of  EUR 18.0  billion  to  Ukraine,  offset  by  EFSM  repayments  of  EUR  3.5  billion  and 
impairments on the new Ukraine loans; 

Total pre-financing decreased from EUR 100.5 billion in 2022 to EUR 91.7 billion in 2023. This is 
linked  mainly  to  the  decrease  of  EUR  3.8  billion  in  the  non-repayable  financial  support  granted 
under the RRF due to clearings that took place during the year following MS reaching milestones 
and  targets.  There  was  additionally  a  considerable  decrease  in  the  other  advances  to  Member 
States (EUR 4.2 billion) which mostly concerns the cohesion area for MFF 2014-2020, and is due 
to the period reaching its closure stage and so most amounts paid are considered implemented;  

•  Cash and cash equivalents decreased from EUR 46.5 billion in 2022 to EUR 39.6 billion in 2023. 
The decrease of EUR 6.9 billion or 14.8% is mainly due to the lower liquidity buffer relating to the 
unified funding (EUR 19.9 billion held in the ECB bank account last year versus EUR 12.5 billion at 
the end of 2023), which resulted from high level of disbursements to Member States under NGEU 
close to year-end; and 

•  Receivables and recoverables decreased from EUR 48.2 billion to EUR 35.2 billion. The decrease 
of EUR 13.0 billion or 27.0% is mainly due to the decrease in the amounts owed by the UK under 
the Withdrawal Agreement as it pays its obligations monthly – see below.  

22 

 
 
 
UK Withdrawal from the EU 

Annual accounts of the European Union 2023 

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 

8 340 
- 

Article 140  Article 142 
10 411 
– 
10 411 
10 102 
 309 

8 340 
4 588 
3 753 

EUR million 
Other  31.12.2023  31.12.2022 
26 683 
18 867 
(2 812) 
(3 394) 
23 871 
15 473 
14 810 
13 088 
9 061 
2 385 

 115 
(3 394) 
(3 279) 
(1 602) 
(1 677) 

23 

 
 
 
 
   
 
 
 
 
Pre-financing 

Annual accounts of the European Union 2023 

In 2023, pre-financing, excluding other advances to Member States and contributions to the trust funds 
Bêkou and Africa, amounted to EUR 89.4 billion (2022: EUR 94.1 billion), almost all of which related to 
Commission activities. The decrease of EUR 4.7 billion or 5.0% is related to the decrease of pre-financing 
related to shared management from EUR 40.6 billion in 2022 to EUR 36.6 billion in 2023, as programmes 
of the previous MFF advance further in their closure stage: 

Commission pre-financing by management mode  

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. 

24 

 
 
 
 
Annual accounts of the European Union 2023 

5.4.  Liabilities 

As  at  31  December  2023  the  total  liabilities  were  EUR  679.8  billion  (2022:  EUR  577.2  billion)  –  the 
increase is  driven  mainly by  the borrowings taken out  in  2023 under the  NGEU  and  MFA+  instruments. 
The  most  significant  liabilities  were  borrowings  for  NGEU  and  financial  assistance  (EUR  450.6  billion), 
pension obligations and other post-employment benefits liabilities (EUR 90.8 billion), accrued charges and 
deferred income (EUR 76.8 billion) and payables to third parties (EUR 50.5 billion).  

Composition of liabilities at 31 December 2023  

The  increase  of  EUR  102.6  billion  or  17.8%  over  the  previous  year  was  mainly  due  to  the  following 
effects: 

•  Borrowings increased from EUR 344.3 billion in 2022 to EUR 450.6 billion in 2023. The increase of 
EUR  106.3  billion  or  30.9%  mainly  relates  to  the  new  issuances  under  the  unified  funding 
approach  (for  NGEU  &  MFA+),  net  of  repayments  and  changes  in  carrying  amount,  of  EUR 
109.6 billion, less EFSM repayments of EUR 3.5 billion; 

•  Accrued charges and deferred income decreased from EUR 86.2 billion in 2022 to EUR 76.8 billion 

in 2023. The decrease of EUR 9.4 billion or 10.9% mainly relates to the RRF; 

• 

• 

Payables  decreased  from  EUR  55.3  billion  in  2022  to  EUR  50.5  billion  in  2023.  The  decrease  of 
EUR 4.8 billion or 8.7% is also primarily related to RRF (decrease of EUR 2.2 billion), and EAGF 
payables (decrease of EUR 3.3 billion related to start of the new CAP strategic plans); and 

Increase  of  EUR  10.2  billion  or  12.7%  in  the  pension  obligations  and  other  post-employment 
benefits liabilities, which increased from EUR 80.6 billion in 2022 to EUR 90.8 billion in 2023. This 
increase  was  mainly  driven  by  the  actuarial  losses  from  changes  in  the  underlying  financial 
assumptions  resulting  from  a  decrease  in  the  real  discount  rates  since  the  last  year-end. 
Additionally,  an  update  of  the  life  tables  in  the  year  led  to  actuarial  losses  from  changes  in 
demographic assumptions. 

25 

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

Annual accounts of the European Union 2023 

The  excess  of  liabilities  over  assets  at  31  December  2023  amounted  to  EUR  212.2  billion  (2022:  EUR 
131.3 billion). It is noted that this 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  revenues 
related  to  these  future  fundings  will  only  be  accounted  for in  future  periods. Apart  from  the  borrowings 
under  the  unified  funding  approach,  which  are  to  be  repaid  up  to  2053,  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. 

26 

 
 
Annual accounts of the European Union 2023 

6. 

SUMMARY OF BUDGET IMPLEMENTATION 

6.1.  Revenue 

In  the  initial  adopted  EU  budget,  signed  by  the  President  of  the  European  Parliament  on 
23 November 2022,  total  payment  appropriations  amounted  to  EUR 168 649 million  and  the  amount  to 
be  financed  by  own  resources  totalled  EUR 156 573 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 2023, four amending budgets were adopted. Taking them into account, the final adopted revenue 
for  2023  amounted  to  EUR 165 203 million  and  the  total  financed  by  own  resources  amounted  to 
EUR 151 041 million. The main reduction concerned the GNI contribution (EUR 10 billion). This was due 
to  multiple  factors  as  for  instance  the  increase  in  other  types  of  own  resources  (such  as  VAT  and 
Plastics), an increase of other revenue and a reduction of the payment appropriations. The net reduction 
of own resources contributions amounted to EUR 5.5 billion. 

Title 1: Own resources 

The collection of traditional own resources was below the forecasted amounts in the budget. This was due 
mainly to a lower collection than expected during 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 2 519 million. This amount was inscribed in 
the  budget  2023  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)8. 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 corresponds to the fines in connection with the implementation of the rules on competition. 

Title 5: Budgetary guarantees, borrowing and lending operations 

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

8  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 (Recast), OJ L 
168, 7.6.2014, p. 39. 

27 

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

Annual accounts of the European Union 2023 

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 EU research programmes, 
the  clearance  of  accounts  in  agricultural  funds  and  other  contributions  and  refunds  to  EU 
programmes/activities. A substantial part of this total is made up of assigned revenue, which gives rise to 
the entering of additional appropriations on the expenditure side.  

Total 2023 budget revenue amounted to EUR 248 361 million: 

6.2.  Expenditure 

6.2.1.  Budget implementation 

In 2023, the third year of the MFF 2021-2027, the final adopted budget amounted to EUR 186.5 billion of 
commitment  appropriations  and  EUR 165.2 billion  of  payment  appropriations. 
In  addition, 
EUR 154.9 billion  of  commitment  appropriations  were  available  as  assigned  revenue,  out  of  which 
EUR 115.9 billion  related  to  the  NGEU9,  and  EUR 2.7 billion  of  commitment  appropriations  were  carried 
over  from  2022.  The  payment  appropriations  related  to  2023  assigned  revenue  amounted  to 
EUR 98.0 billion,  out  of  which  EUR 69.2 billion  related  to  the  NGEU  and  EUR 2.6  billion  of  payment 
appropriations were carried over from 2022. 

Active monitoring of budget implementation and good cooperation between the European Parliament, the 
Council and the Commission brought about full implementation of the budget. 

The implementation of the total commitment appropriations in 2023 amounted to EUR 332.3 billion: 

• 

EUR 184.4 billion from the final adopted budget; 

•  EUR 2.7 billion from appropriations carried-over or made available again from 2022; 

•  EUR 145.2 billion from appropriations stemming from assigned revenue; 

o  of which EUR 115.6 billion from NGEU. 

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

28 

 
 
 
 
 
Annual accounts of the European Union 2023 

The implementation of the total payment appropriations in 2023 amounted to EUR 239.2 billion: 

•  EUR 162.0 billion from the final adopted budget; 

•  EUR 2.4 billion from appropriations carried-over or made available again from 2022; 

•  EUR 74.7 billion from appropriations stemming from assigned revenue; 

o  of which EUR 66.1 billion from NGEU. 

In cases allowed by the Financial Regulation and/or legal bases, the appropriations of the voted budget 
that  were  not  implemented  in  2023  were  carried  over  to  2024:  EUR 0.8 billion  of  commitment 
appropriations and EUR 3.0 billion of payment appropriations. 

Likewise,  EUR 9.4 billion  of  commitment  appropriations  of  assigned  revenue,  of  which  EUR 0.3  billion 
related to the NGEU, and EUR 23.2 billion of payment appropriations of assigned revenue, of which EUR 
3.1 billion related to the NGEU, were carried over to 2024 in accordance with the Financial Regulation. 

Total  2023  commitment  appropriations  implementation  per  MFF  2021-2027  heading  were  as  shown 
below: 

The  2023  implementation  for  all  types  of  appropriations  (budget,  carry-overs  from  previous  year  and 
assigned revenue) was 97% for commitments and 90% 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 2023. 

The  NGEU  appropriations  were  inscribed  in  full  in  2021,  i.e.  EUR  421.1  billion  in  commitment 
appropriations. In 2023, the last year for which the related legal commitments could be entered into, the 
available  commitments  under  NGEU  amounted  to  EUR  115.9  billion.  EUR  115.6  billion  or  99.8%  was 
committed.  Only  EUR  0.4  million  of  the  commitments  had  to  be  cancelled.  The  remaining  EUR  261.2 
million was carried over to 2024. These appropriations are partly linked to the suspended Just Transition 
Fund allocation for Hungary (EUR 60.5 million) and partly for the technical and administrative assistance 
expenditure.  

In  2023,  the  NGEU  payment  appropriations  amounted  to  EUR  69.2  billion  and  the  implementation 
reached 95.5%. The remaining amount of EUR 3.1 billion of payment appropriations was carried over to 
2024. 

29 

 
 
 
6.2.2.  Outstanding commitments 

Annual accounts of the European Union 2023 

Outstanding  commitments  (commonly  referred  to  as  RAL  –  reste  à  liquider),  which  correspond  to 
amounts committed but not yet paid for, stood at EUR 543.0 billion at the end of 2023. The outstanding 
commitments increased as compared to 2022 (by EUR 90.2 billion).  

The  main  driver  of  the  2023  increase  of  the  RAL  was  the  NGEU  (non-repayable  part)  implementation, 
contributing EUR 238.6 billion (44%) to the total RAL at the end of 2023. As the NGEU appropriations are 
to 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  reverse 
from 2024 onwards. 

6.2.3.  Budget result 

The budget result (surplus) decreased from EUR 2.5 billion in 2022 to EUR 0.6 billion in 2023. The 2023 
budget result is the lowest on record since many years. 

30 

 
 
Annual accounts of the European Union 2023 

7. 

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. 

7.1.  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  principles10  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  202011.  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. 

10 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). 

11 On 1st of February 2024, the European Council agreed on a mid-term revision of 2021-2027 MFF ceilings, following 

the Commission’s proposals COM(2023) 336. 

31 

 
 
 
 
 
Annual accounts of the European Union 2023 

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)12  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 

7.2.  Governance and accountability 

7.2.1. 

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  autonomous  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 

12 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. 

32 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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.13 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. 

7.2.2. 

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  Communication14  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.15 

7.2.3. 

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  Rules16)  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.  

13 See Article 317 TFEU. 
14 C(2020) 4240 of 24.6.2020. 
15 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). 

16 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). 

33 

 
 
Annual accounts of the European Union 2023 

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  budget17  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 EU 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. 

7.2.4.  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. 

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

34 

 
 
Annual accounts of the European Union 2023 

NOTE ACCOMPANYING THE 
CONSOLIDATED ACCOUNTS 

The  consolidated  annual  accounts  of  the  European  Union  for  the  year  2023  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 2024

35 

 
 
 
 
 
Annual accounts of the European Union 2023 

EUROPEAN UNION 
FINANCIAL YEAR 2023 

CONSOLIDATED FINANCIAL STATEMENTS 
AND EXPLANATORY NOTES 

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

36 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

CONTENTS 

BALANCE SHEET ......................................................................................... 38 

STATEMENT OF FINANCIAL PERFORMANCE ..................................................... 39 

CASHFLOW STATEMENT ............................................................................... 40 

STATEMENT OF CHANGES IN NET ASSETS ...................................................... 41 

NOTES TO THE FINANCIAL STATEMENTS ........................................................ 42 

1.SIGNIFICANT ACCOUNTING POLICIES ...................................................... 43 

2.NOTES TO THE BALANCE SHEET .............................................................. 58 

3.NOTES TO THE STATEMENT OF FINANCIAL PERFORMANCE .......................... 94 

4.CONTINGENT LIABILITIES AND ASSETS ................................................... 103 

5.BUDGETARY AND LEGAL COMMITMENTS .................................................. 109 

6.FINANCIAL RISK MANAGEMENT .............................................................. 113 

7.RELATED PARTY DISCLOSURES .............................................................. 132 

8.EVENTS AFTER THE BALANCE SHEET DATE ............................................... 134 

9.SCOPE OF CONSOLIDATION ................................................................... 135 

37 

 
 
 
Annual accounts of the European Union 2023 

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 
31.12.2023  31.12.2022 

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 

 976 
13 399 
1 365 
274 283 
41 417 
16 083 
347 524 

11 088 
50 257 
19 116 
 78 
39 616 
120 156 
467 679 

 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 

(90 808) 
(2 102) 
(430 771) 
(523 682) 

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

 (1 233) 
(27 613) 
(50 516) 
(76 805) 
(156 166) 
(679 848) 

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

(212 169) 

(131 325) 

Reserves 
Amounts to be called from Member States* 
NET ASSETS 

2.14 
2.15 

1 052 
(213 221) 
(212 169) 

1 312 
(132 637) 
(131 325) 

*  The  European  Parliament  adopted  a  budget  on  22  November  2023  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. 

38 

 
 
 
 
 
 
   
 
 
 
   
 
 
 
 
 
 
   
 
   
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

STATEMENT OF FINANCIAL PERFORMANCE 

Note 

2023 

2022      

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 

101 287 
19 840 
22 526 
7 225 
1 748 
 803 
 681 
8 800 
162 909 

6 983 
1 963 
8 946 
171 855 

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

2 602 
1 669 
4 271 
171 179 

(40 716) 

(41 031) 

(14 605) 

(16 073) 

(52 429) 

(17 665) 
(4 251) 

(43 083) 

(14 649) 
(3 482) 

(61 888) 

(94 027) 

(4 226) 

(3 615) 

(6 090) 
(4 902) 
(14 023) 
(14 355) 
– 
(8 142) 
(243 292) 
(71 437) 

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

39 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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 under the unified funding approach 
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 

2023 
(71 437) 

 181 
1 203 
– 
(42 522) 
8 821 

13 000 

 3 
10 192 
 564 
(3 516) 
(4 825) 
(9 359) 
(2 519) 

(6 877) 

 (11) 

EUR million 
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 

(1 938) 

(1 803) 

 (52) 

 (121) 

(7 329) 

(5 850) 

 (107) 

 (156) 

109 600 
(6 928) 

(6 928) 
46 544 
39 616 

92 128 
1 684 

1 684 
44 860 
46 544 

40 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENT OF CHANGES IN NET ASSETS 

Annual accounts of the European Union 2023 

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 
Remeasurements in employee benefits liabilities 
Other 
2022 budget result credited to Member States 
Economic result of the year 
BALANCE AS AT 31.12.2023 

Amounts to be called from Member States  
Accumulated Surplus/(Deficit) 
(83 624) 
46 048 
 115 
(3 227) 
(91 949) 
(132 637) 
(6 877) 
 249 
(2 519) 
(71 437) 
(213 221) 

Other reserves 

Net Assets  

EUR million 

1 325 
– 
 (13) 
– 
– 
1 312 
– 
 (260) 
– 
– 
1 052 

(82 299) 
46 048 
 102 
(3 227) 
(91 949) 
(131 325) 
(6 877) 
 (11) 
(2 519) 
(71 437) 
(212 169) 

41 

 
 
 
 
 
 
 
  
  
Annual accounts of the European Union 2023 

NOTES TO THE FINANCIAL STATEMENTS 

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

42 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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 2023 

There are no new EAR which became effective for annual periods beginning on or after 1 January 2023. 

New EAR adopted but not yet effective at 31 December 2023 

There are no new EAR adopted but not yet effective at 31 December 2023. 

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  (unchanged  compared  to  2022),  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 

43 

 
Annual accounts of the European Union 2023 

separately  listed  in  note  9.  In  2023,  10  entities  have  been  classified  as  such  minor  entities  (2022:  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. 

44 

 
 
 
Transactions and balances 

Annual accounts of the European Union 2023 

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 
HUF 
PLN 

31.12.2023 
1.9558 
24.7240 
7.4529 
0.8691 
382.8 
4.3395 

31.12.2022  Currency 
1.9558  RON 
24.1160  SEK 
7.4365  CHF 
0.8869  JPY 
400.8700  USD 
4.6808   

1.4.2.  Use of estimates 

31.12.2023 
4.9756 
11.096 
0.9260 
156.3300 
1.105 

31.12.2022 
4.9495 
11.1218 
0.9847 
140.6600 
1.0666 

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. 

45 

 
 
 
 
 
1.5.2. 

Property, plant and equipment 

Annual accounts of the European Union 2023 

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. 

46 

 
Annual accounts of the European Union 2023 

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. 

47 

 
 
Annual accounts of the European Union 2023 

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 2023. 

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

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

•  Derivatives; 
•  Equity investments and investments in money market funds or in pooled portfolio funds; 
•  Other equity-type investments (e.g. Risk Capital Operations). 

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

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

Initial recognition and measurement 

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

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

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

48 

 
Annual accounts of the European Union 2023 

case, the difference between the fair value of the financial instrument and the transaction price is a non-
exchange  component  which  is  recognised  as  an  expense  in  the  statement  of  financial  performance.  In 
this  case,  the  fair  value  of  a  financial  asset  is  derived  from  current  market  transactions  for  a  directly 
equivalent  instrument.  If  there  is  no  active  market  for  the  instrument,  the  fair  value  is  derived  from  a 
valuation technique that uses available data from observable markets. 

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

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

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

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

Subsequent measurement 

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

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

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

Fair value at subsequent measurement 

The fair values of quoted investments in active markets are based on current bid prices. If the market for 
a  financial  asset  is  not  active  (and  for  unlisted  securities  and  over-the–counter  derivatives),  the  EU 
establishes  a  fair  value  by  using  valuation  techniques.  These  include  the  use  of  recent  arm’s  length 
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. 

49 

 
Annual accounts of the European Union 2023 

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 

50 

 
Annual accounts of the European Union 2023 

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. 

51 

 
1.5.9.  Cash and cash equivalents 

Annual accounts of the European Union 2023 

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 funded18 
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. 

18 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). 

52 

 
 
Annual accounts of the European Union 2023 

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. 

53 

 
Annual accounts of the European Union 2023 

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 

54 

 
Annual accounts of the European Union 2023 

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. 

55 

 
Annual accounts of the European Union 2023 

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 

56 

 
Annual accounts of the European Union 2023 

amount.  Furthermore,  at  the  balance  sheet  date,  expenses  related  to  the  service  delivered  during  the 
period  for  which  an  invoice  has  not  yet  been  received  or  accepted  are  estimated  and  recognised  in  the 
statement of financial performance. 

1.7.  CONTINGENT ASSETS AND LIABILITIES 

1.7.1.  Contingent assets 

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

1.7.2.  Contingent liabilities 

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

1.8.  CASHFLOW STATEMENT 

Cashflow information is used to provide a basis for assessing the ability of the EU to generate cash and 
cash equivalents, and its needs to utilise those cashflows. 

The cashflow statement is prepared using the indirect method. This means that the economic result for 
the  financial  year  is  adjusted  for  the  effects  of  transactions  of  a  non-cash  nature,  any  deferrals  or 
accruals  of  past  or  future  operating  cash  receipts  or  payments,  and  items  of  revenue  or  expense 
associated with investing cashflows. 

Cashflows  arising  from  transactions  in  a  foreign  currency  are  recorded  in  the  EU’s  reporting  currency 
(Euro), by applying to the foreign currency amount the exchange rate between the euro and the foreign 
currency at the date of the cashflow. 

The  cashflow  statement  reports  cashflows  during  the  period  classified  by  operating,  investing  and 
financing activities. 

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

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). 

57 

 
Annual accounts of the European Union 2023 

2.  NOTES TO THE BALANCE SHEET 

ASSETS 

2.1.  INTANGIBLE ASSETS 

Gross carrying amount at 31.12.2022 
Additions 
Disposals 
Transfer between asset categories 
Other changes 
Gross carrying amount at 31.12.2023 
Accumulated amortisation at 31.12.2022 
Amortisation charge for the year 
Amortisation written back 
Disposals 
Transfer between asset categories 
Other changes 
Accumulated amortisation at 31.12.2023 

Net carrying amount at 31.12.2023 
Net carrying amount at 31.12.2022 

EUR million 

1 849 
 259 
 (25) 
0 
 2 
2 086 
 (949) 
 (181) 
- 
 21 
0 
0 
(1 110) 

 976 
 900 

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,  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 2  487  million  at  31  December  2023,  net  of 
accumulated  depreciation  (2022:  EUR 3  056  million).  The  remaining  assets  under  construction  total 
EUR 2 479 million (2022: EUR 1 812 million).  

Regarding Copernicus, 8 satellites are operational with 18 satellites and instruments under construction. 
The total value of Copernicus operational fixed assets is EUR 438 million (2022: EUR 634 million), net of 
accumulated  depreciation.  A  further  EUR 3  078 million  related  to  Copernicus  satellites  is  recognised  as 
assets under construction (2022: EUR 2 583 million).  

Fixed assets related to the EGNOS ground infrastructure of EUR 187 million (2022: EUR 106 million) are 
also included under the heading ‘Space assets’. In addition, EGNOS assets under construction amount to 
EUR 289 million (2022: EUR 292 million). 

On  29  April  2024,  the  European  Commission  sold  23  of  its  buildings  in  Brussels  to  SFPIM  (‘Société 
Fédérale  de  Participations  et  d’Investissement’  –  the  national  Belgian  Sovereign  Fund)  for  an  overall 
selling price of EUR 900 million. The net book value of the related buildings amounted to EUR 437 million 
at  31  December  2023.  The  proceeds  of  the  sale  will  be  reinvested  to  finance  new  buildings,  pay  off 
remaining mortgages and renovate existing buildings. Although the sale is signed for all 23 buildings, the 
exit will be gradual, with the last buildings to be vacated in September 2029. 

58 

 
 
 
 
 
 
 
Property, plant and equipment 

Annual accounts of the European Union 2023 

Land and 
Buildings 
6 608 

Space 
assets 
7 603 

Plant and 
Equipment 
 572 

Furniture 
and Vehicles 
 280 

Computer 
Hardware 
 838 

Gross carrying amount at 31.12.2022 

Additions 

Disposals 

Transfer between asset categories 

Other changes 

 21 

 2 

 401 

 2 

– 

– 

 99 

– 

Gross carrying amount at 31.12.2023 

7 034 

7 702 

Accumulated depreciation at 31.12.2022 

(4 016) 

(3 807) 

Depreciation charge for the year 

 (150) 

 (785) 

Depreciation written back 

Disposals 

Transfer between asset categories 

Other changes 

 0 

 (2) 

 (250) 

 0 

– 

– 

– 

– 

 23 

 (20) 

 0 

 (0) 

 575 

 (494) 

 (33) 

 0 

 19 

 (0) 

 0 

 13 

 (11) 

 0 

– 

 283 

 (209) 

 (16) 

 0 

 11 

 0 

 0 

 73 

 (50) 

 0 

 1 

 863 

 (630) 

 (102) 

 1 

 50 

 (0) 

 (0) 

Other 

 367 

 21 

 (22) 

 4 

 0 

 370 

 (288) 

 (22) 

 0 

 21 

 0 

 (0) 

Finance 
leases 
2 675 

 Assets under 
construction 
4 995 

1 450 

– 

 (136) 

 (0) 

6 308 

 74 

 (1) 

 (370) 

– 

2 378 

(1 574) 

 (93) 

– 

 1 

 250 

– 

EUR million 

Total 

23 937 

1 675 

 (102) 

 (0) 

 3 

25 513 

(11 015) 

(1 200) 

 1 

 100 

 0 

 (0) 

Accumulated depreciation at 31.12.2023 

(4 417) 

(4 591) 

 (507) 

 (214) 

 (681) 

 (288) 

(1 416) 

(12 114) 

NET CARRYING AMOUNT AT 31.12.2023 

NET CARRYING AMOUNT AT 31.12.2022 

2 617 

2 592 

3 111 

3 796 

 68 

 78 

 69 

 71 

 181 

 208 

 82 

 79 

 962 

1 101 

6 308 

4 995 

13 399 

12 922 

59 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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 2023, the EU holds 29.7% of ownership interests in the EIF (2022: 30%) and 29.7% of 
the  voting  rights  (2022: 30%).  In  accordance  with  its  statutes,  the  EIF  is  required  to  allocate  at  least 
20%  of  its  annual  net  result  to  a  statutory  reserve,  until  the  aggregate  reserve  amounts  to  10%  of 
subscribed capital. This reserve is not available for distribution. 

The table below shows the current year’s movement of the EU’s participation in the EIF. 

Participation at 31.12.2022 
Contributions 
Dividends received 
Share of net result 
Share in the net assets 
Participation at 31.12.2023 

EIF summarised financial information: 

Assets 
Liabilities 
Revenue 
Expenses 
Surplus/(deficit) 

EUR million 
European Investment Fund 
1 313 
- 
 (4) 
 67 
 (11) 
1 365 

31.12.2023 
Total EIF 
6 554 
(1 959) 
 452 
 (218) 
 234 

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

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 

31.12.2023 
4 595 
29.7% 

1 365 

EUR million 
31.12.2022 
4 377 
30.0% 

1 313 

The  EU,  represented  by  the  Commission,  has  paid in  20%  of  its  subscribed  shares  in  the  EIF  capital  at 
31 December 2023, the uncalled amount is as follows: 

Total share capital 
Paid-in 
Uncalled 

Total EIF capital 
7 370 
(1 474) 
5 896 

EUR million 
EU subscription 
2 190 
 (438) 
1 752 

60 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

2.4.  FINANCIAL ASSETS 

Note 

31.12.2023 

EUR million 
31.12.2022 

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 amortised cost 

242 265 
32 018 
274 283 

4 612 
6 476 
11 088 
285 370 

199 918 
26 513 
226 431 

4 437 
4 544 
8 981 
235 412 

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

2.4.1.1.  Loans for NGEU and financial assistance  

Note 
2.4.1.1 
2.4.1.2 

31.12.2023 
246 622 
 255 
246 877 
242 265 
4 612 

EUR million 
31.12.2022 
204 103 
 251 
204 354 
199 918 
4 437 

Total at 31.12.2022 
New loans (nominal) 
Repayments 
Changes in carrying 
amount 
Changes in impairment 
Total at 31.12.2023 
Non-current 
Current 

NGEU 
45 340 
34 084 
– 

SURE 
99 130 
– 
– 

EFSM 
46 587 
– 
(3 500) 

BOP 
 201 
– 
– 

MFA  Euratom 
 232 
– 
 (13) 

12 613 
18 290 
 (60) 

EUR million 
Total 
204 103 
52 374 
(3 573) 

 165 

 (145) 

 7 

 0 

 350 

 (0) 

 377 

– 

– 

– 
79 589  98 984  43 095 
40 084 
98 880 
79 240 
3 010 
 104 
 349 

– 

(6 664) 
 201  24 528 
23 530 
 200 
 998 
 1 

 5 

(6 659) 
 224  246 622 
242 144 
 210 
4 477 
 14 

The nominal value of loans at 31 December 2023 is EUR 254.1 billion (2022: EUR 205.3 billion), out of 
which EUR 174.9 billion refers to loans for financial assistance and EUR 79.2 billion to the NGEU loans for 
RRF and REPowerEU programmes.  

The  line  ‘changes  in  impairment’  corresponds to the  remeasurement  of the  expected  credit losses  as  at 
31 December 2023. 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,  except  for  MFA+,  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  NGEU  and 
MFA+ loans there is no back-to-back relationship between the terms of the loans and the borrowings (for 
details on the funding of these loans see note 2.11.1.1). 

NGEU (RRF/REPowerEU) 

The RRF is a temporary instrument, established in 2021, 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 

61 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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

In  2023,  the  RRF  Regulation  was  amended  and  enabled  the  Member  States  to  add a  REPowerEU 
chapter to their national recovery and resilience plans. The Member States can finance investments and 
reforms in  order  to  achieve  the  REPowerEU  objectives.  The  financing  can  also  be  with  loans,  using  RRF 
loan resources not yet requested by the Member States.  

At 31 December 2023, the signed loan agreements were EUR 290.9 billion out of which EUR 79.2 billion 
were already disbursed (EUR 5.4 billion disbusements refer to REPowerEU). 

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.  

The availability 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.  

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.  

The  total  nominal  exposure  of  MFA  loans  outstanding  at  year  end  amounted  to  EUR  33.2  billion,  out  of 
which EUR 29.6 billion is to Ukraine. This includes EUR 18 billion that were disbursed in 2023, to support 
Ukraine’s economic stabilisation and to strengthen the immediate resilience of the country subsequent to 
Russia’s unprovoked and unjustified war of aggression (MFA+). 

MFA loans and related borrowings (except for MFA+) are covered by the assets held in the CPF (see note 
2.4.2.1)  for  the  first  9%  of  losses  and  then,  if  needed,  by  the  EU  budget.  In  addition,  the  exceptional 
MFA  to  Ukraine  disbursed  in  2022  for  EUR  6  billion,  is  also  covered  by  Member  States  guarantees  for 
61% of the exposure (on top of the 9% of first losess covered by the CPF, and with the remaining 30% 
being  guaranteed  by  EU  budget).  At  31  December  2023,  the  European  Commission  had  received 
guarantees totalling EUR 3.5 billion, with the remaining guarantees received by 30 April 2024. There are 
no assets provisioned and held in the CPF in relation to MFA+ loans disbursed to Ukraine in 2023. In case 
of  default,  the  Commission  may  call  resources  from  Member  States  up  to  the  available  own  resources 
margin in order to service the EU debt (see also note 6.6). 

As  at  31  December  2023,  the  impairment  allowance  for  MFA  loans  is  EUR  9.0  billion  (2022:  EUR  2.3 
billion), out of which EUR 8.8 billion refer to the loans to Ukraine. The increase in the impairment relates 
to  the  EUR  18  billion  of  new  MFA+  loans  disbursed  to  Ukraine  in  2023.  While  all  amounts  due  in  2023 

62 

 
Annual accounts of the European Union 2023 

from  Ukraine  were  paid  on  time  and  at  the  moment  of  preparation  of  the  annual  accounts  there  is  no 
overdue  payments,  in  accordance  with  the  accounting  rules,  the  impairment  reflects  the  life-time 
expected credit losses estimated with a particular prudence due to significant uncertainties involved. 

In 2023, the EU granted EUR 100 million of interest rate subsidies to Ukraine for the interest accrued on 
the  exceptional  MFA  loans.  This  consitutes  a  modification  of  the  loan’s  terms  (see  also  notes  3.15  and 
6.5), and is included under the ‘Changes in carrying amount’ in the table above.  

As at 31 December 2023, there are EUR 95 million conditional undrawn amounts from signed MFA loan 
agreements (2022: EUR 285 million). 

European Atomic Energy Community loans (Euratom) 

The  European  Atomic  Energy  Community  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 2023 of EUR 313 million, EUR 300 million (nominal value) relates to loans to 
Energoatom,  guaranteed  by  Ukraine.  For  these  loans  an  impairment  allowance  of  EUR  90  million  has 
been recognised. There are no undrawn amounts from signed loan agreements.  

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

NGEU 
SURE 
EFSM 
BOP 
MFA 
Euratom 

EU budget guarantee 

31.12.2023 
0.15% - 3.56% 
(0.48)% - 2.78% 
(0.03)% - 3.79% 
2.95% 
(0.14)% - 3.86% 
(0.08)% - 4.14% 

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% 

The  EU  budget  guarantees  the  Commission  borrowings  which  finance  the  loans  under  the  NGEU  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.  

•  Unified funding borrowings (NGEU and MFA+) 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; 

•  MFA borrowings for loans to third countries are firstly covered by the CPF (see note 2.4.2.1) and 
then  by  the  EU  budget,  with  exception  of  the  MFA  exceptional  financial  assistance  loans  to 
Ukraine  of  EUR  6  billion  that  are  61%  covered  by  guarantees  provided  by  the  Member  States 
after the first 9% of losses to be covered by CPF; and 

• 

Euratom  borrowings  are  firstly  covered  by  the  by  3rd  party  guarantees,  then  by  CPF  (see  note 
2.4.2.1), 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 
covered  by  the  EU  guarantee  at  31  December  2023  is  EUR  48.8  billion  –  the  UK’s  share  of  this  is 
EUR 6.1 billion. 

63 

 
 
Annual accounts of the European Union 2023 

2.4.1.2.  Other loans 

These include 3 types of loans:  

a)  Loans  granted  from  EU  budget  programmes  (e.g.  the  Agriculture  and  Electrification  Financing 
initiatives  and  the  EU  Employment  and  Social  Innovation  programme).  These  loans  total 
EUR 77 million as at 31 December 2023 (2022: EUR 79 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 2023, the Commission holds the recovery rights for EUR 1.0 billion of such loans, 
including  accrued  interests  (2022:  EUR  1.0  billion).  However,  after  taking  into  account  the 
expected  credit  losses,  the  amount  recognised  on  the  balance  sheet  is  EUR  56  million  (2022: 
EUR 126 million).  

c)  Term deposits of EUR 122 million (2022: EUR 46 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 

31.12.2023 
37 402 
1 091 
38 493 
32 018 
6 476 

EUR million 
31.12.2022 
30 073 
 984 
31 057 
26 513 
4 544 

31.12.2023 
29 703 
4 806 
2 893 
37 402 
30 967 
6 435 

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

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).  As  at 
31 December 2023, the market value of securities lent within the securities lending programmes amounts 
to  EUR  3.2  billion  (EUR  0.4  billion  in  2022).  Those  securities  lent  are  not  derecognised  from  the  EU’s 
balance sheet as the risks and rewards are still held by the EU. 

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

64 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial assets at FVSD non-derivatives by programme 

Annual accounts of the European Union 2023 

Innovation Fund 
BUFI investments 
ECSC i.L. 
EBRD 
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) 

31.12.2023 
8 754 
2 268 
1 219 
 188 
 97 
12 526 

EUR million 
31.12.2022 
6 476 
2 015 
1 222 
 188 
 84 
9 985 

18 698 
18 698 

3 872 
 731 
 485 
 233 
 116 
 110 
 630 
6 178 
37 402 
30 967 
6 435 

14 057 
14 057 

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

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  of  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. 
The increase in 2023 is mainly due to incoming auctioning revenues but also to portfolio gains of EUR 0.5 
billion.  

BUFI investments 

The Commission has established the Budget Fines fund (‘BUFI’) for managing the money it provisionally 
receives  for  fines  issued  to  companies  which  are  under  appeal.  Until  the  final  court  decision  on  a  given 
fine, the Commission invests the money in debt instruments.  

ECSC i.L. 

The  ECSC  Treaty  expired  on  23  July  2002  and  all  the  ECSC  assets  were  transferred  to  the  European 
Union. They 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 purposes.   

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  2023  were  90  044  (2022: 
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 above. Although the EBRD's shares are not quoted on any stock exchange market, there were 

65 

 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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 gives guarantees to financial partners for losses on equity investments and loans (see note 4.1 
for EU budgetary guarantees). In accordance to the legal acts, the EU budget gradually sets money aside 
in order to pay to the partners any losses covered by these guarantees. The EU budget also sets money 
aside to repay the borrowings in case of defaults in the MFA and Euratom loans to non Member States. 

In  compliance  with  the  Financial  Regulation,  the  Commission  has  set  up  the  CPF  to  manage,  in  one 
common  portfolio,  the  money  it  sets  aside  (‘provisioning’).  The  monies  are  invested  in  debt  securities, 
money  market  funds  and  ETFs.  In  addition  to  the  EU  budget  provisioning,  the  CPF  receives  recoveries 
from  defaulted operations,  the  returns on its  investments and  the  EU’s remuneration  from  the financial 
partners. 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 2023 the assets of the CPF increased as the budgetary guarantees are building up the 
necessary  provisions  but  also  due  to  portfolio  gains  of  EUR  0.9  billion.  The  total  assets  were 
EUR 18.7 billion, out of which EUR 16.7 billion were invested in debt securities, EUR 0.4 billion in money 
market funds and EUR 1.6 billion ETFs. 

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.  

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. 

66 

 
 
 
Fair value hierarchy of non-derivative financial assets at FVSD  

Annual accounts of the European Union 2023 

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 

31.12.2023 
31 477 
3 230 

2 695 

37 402 

EUR million 
31.12.2022 
24 677 
3 061 

2 335 

30 073 

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 1.1.2023 
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 31.12.2023 

EUR million 

2 335 
 557 
 (77) 
 (51) 
 (67) 
– 
– 
 (1) 
2 695 

The  net  losses  for  level  3  non-derivative  assets  held  at  end  of  2023  were  EUR  119  million  (2022:  net 
losses  of  EUR  87  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 

31.12.2023 
Notional 
amount  

Fair Value 
Asset 

Fair Value 
Liability 

31.12.2022 
Notional 
amount  

Fair Value 
Asset 

Fair Value 
Liability 

EUR million 

1 149 
5 059 
 379 
6 587 

 39 
1 050 
 2 
1 091 
1 050 
 41 

– 
 (53) 
 (6) 
 (60) 
 (8) 
 (52) 

 488 
4 694 
 87 
5 269 

 5 
 979 
- 
 984 
 979 
 5 

– 
 (17) 
 (8) 
 (25) 
 (9) 
 (15) 

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. 

67 

 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
Guarantees on equity portfolios 

Annual accounts of the European Union 2023 

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  3.7  billion  (2022:  EUR  3.5  billion). 
The  fair  value  of  the  EU  guarantee  on  the  EFSI  equity  portfolios  totalled  EUR  1  033  million  (2022: 
EUR 967 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. This 
heading also includes effect of the FX risk hedging activities under the InvestEU guarantee. 

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 

31.12.2023 

Fair Value  
Asset  
– 

Fair Value 
Liability  
– 

31.12.2022 
Fair Value 
Asset  
– 

EUR million 

Fair Value 
Liability  
– 

 41 

1 050 
1 091 

 (1) 

 (59) 
 (60) 

 5 

 (3) 

 979 
 984 

 (21) 
 (25) 

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 1.1.2023 
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 31.12.2023 

EUR million 

 958 
 134 
– 
 (122) 
 22 
– 
– 
– 
 992 

The net gains for level 3 derivative assets held at end of 2023 were EUR 22 million (2022: net gains of 
EUR  181  million).  This  amount  is  included  under  ‘Gains  on  financial  assets  or  liabilities  at  FVSD 
derivatives’ in financial revenue (see note 3.9) and under ‘Losses from on financial assets or liabilities at 
FVSD derivatives’ (see note 3.15). 

68 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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 

31.12.2023 

EUR million 
31.12.2022 

40 970 
 371 
 76 
41 417 

48 478 
1 780 
50 257 
91 675 

47 179 
 216 
 86 
47 482 

46 927 
6 087 
53 014 
100 496 

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 31.12.2023 

Gross 
amount 

Cleared via 
accruals 

EUR million 
Net amount 
at 31.12.2022 

3 614 

 (686) 

2 928 

3 051 

 (527) 

31 502 

12 105 

8 755 

(10 125) 

(3 236) 

(5 348) 

21 378 

8 869 

3 408 

29 812 

11 621 

8 063 

(4 932) 

(1 974) 

(4 498) 

2 525 

24 880 

9 647 

3 565 

55 976 

(19 394) 

36 582 

52 548 

(11 931) 

40 617 

37 273 

22 889 

36 130 

 639 

(12 782) 

(3 710) 

(21 683) 

 (507) 

24 491 

19 178 

14 446 

 133 

41 722 

28 347 

(13 695) 

(5 389) 

29 566 

(17 104) 

 738 

 (582) 

28 027 

22 958 

12 462 

 156 

74 042 

(34 972) 

39 070 

72 026 

(31 381) 

40 645 

4 983 

1 602 

14 229 

17 606 

(2 314) 

(1 166) 

(9 713) 

(11 432) 

2 670 

 436 

4 516 

6 175 

2 892 

1 797 

12 488 

15 208 

(1 262) 

(1 275) 

(7 491) 

(9 513) 

38 421 

(24 625) 

13 797 

32 385 

(19 540) 

168 439 

(78 991) 

89 448 

156 958 

(62 852) 

40 970 

– 

127 469 

(78 991) 

40 970 

48 478 

47 179 

– 

109 778 

(62 852) 

1 631 

 522 

4 997 

5 695 

12 845 

94 106 

47 179 

46 927 

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. 

69 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

For shared management, the largest part of pre-financing (EUR 20.6 billion) relates to the cohesion area 
of the programming period 2014-2020. For that period there was 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 is ongoing. This situation is 
the main reason for the decrease in non-current pre-financing and a significant factor in the increase in 
the current amount. 

As  regards  the  2021-2027  programming  period,  the  most  significant  pre-financing  amounts  are  also 
related to the cohesion area, EUR 9 billion.  

For direct management, the biggest amounts of pre-financing are those related to the non-reimbursable 
support  concerning  the  RRF  instrument,  EUR  19.1  billion  net  at  year-end  (2022:  EUR  23  billion).  The 
decrease  is  mostly  linked  to  the  clearings  that  took  place  during  the  year  (EUR  7.2  billion)  following 
Member  States  reaching  milestones  and  targets.  In  2023,  the  RRF  was  amended  by  Regulation  (EU) 
2023/435 to provide additional support to Member States through REPowerEU chapters for reforms and 
investments  fostering  independence,  security  and  sustainability  of  the  Union’s  energy  supply.  New  pre-
financing  amounts  (EUR  1.7  billion)  were  paid  to  the  Member  States  in  2023  in  relation  to  REPowerEU 
chapters.  The  other  significant  amounts,  in  total  EU  12.1  billion  (2022:  EUR  13 billion),  refer  to  the 
Research area (mainly Horizon 2020 and Horizon Europe, implemented by the EU executive agencies and 
the Commission).  

For  indirect  management,  the  pre-financing  covers  mainly  internal  policies  programmes  like  Erasmus+ 
(EUR  3.4  billion),  Galileo  and  EGNOS  (Space  Programmes,  EUR  2.6  billion),  and  the  Neighbourhood, 
Development and Cooperation Instrument and its precursors (EUR 2.8 billion).  

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  2023  the  nominal  value  of  guarantees  received  in  respect  of  pre-financing  amounted  to 
EUR 576  million  while  the  on-going  value  of  those  guarantees  was  EUR 525  million  (2022:  EUR 518 
million and EUR 464 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  2023,  pre-financing  amounts  covered  by  the  MIM  totalled  EUR 3.0 billion  (2022: 
EUR 2.7 billion). The MIM total assets, including financial assets managed by the Commission, amounted 
to EUR 3.0 billion (2022: EUR 2.6 billion). 

70 

 
 
 
2.5.2.  Other advances to Member States 

Annual accounts of the European Union 2023 

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

31.12.2023 

EUR million 
31.12.2022 

 594 

1 556 
2 150 
 371 
1 780 

3 390 

2 914 
6 303 
 216 
6 087 

Advances to Member States for financial instruments under shared management 

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 remain the property of the EU (as with all pre-
financing) and are thus treated as an asset on the EU’s balance sheet. 

The  large  decrease  concerns  mostly  the  cohesion  area  for  MFF  2014-2020  and  is  due  to  the  period 
reaching  its  closure  stage,  therefore  most  amounts  paid  are  considered  as  implemented;  only  EUR  261 
million are estimated to be unused and remain as assets in the balance sheet. This amount relates to the 
contribution  of  the  Member  States  to  the  SME  initiative,  an  instrument  aimed  at  stimulating  additional 
lending by the banking sector to SMEs. The remaining amounts, in the cohesion area, of EUR 261 million 
relate to the new MFF 2021-2027.   

For rural development, EUR 71 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. In 2023, the full amount (EUR 
1  556  milion)  relates  to  agriculture  and  rural  development.  In  the  cohesion  area  all  advances  for  Aid 
Schemes  related  to  the  MFF  2014-2020  are  considered  as  implemented,  due  to  the  period  reaching  its 
end. 

71 

 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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 

31.12.2023 

EUR million 
31.12.2022 

13 954 
2 129 
16 083 

16 795 
2 321 
19 116 
35 199 

16 339 
2 532 
18 870 

25 832 
3 497 
29 329 
48 199 

2.6.1.  Recoverables from non-exchange transactions 

Note 

31.12.2023 

EUR million 
31.12.2022 

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 

72 

 272 
13 088 
 567 
 27 
13 954 

3 706 
2 385 
9 861 
 787 
 57 
16 795 
30 749 

 503 
14 810 
1 011 
 15 
16 339 

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

31.12.2023 
2 326 
1 249 
 7 
 (673) 
– 
2 908 
1 483 

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

 126 

 (683) 
 927 
 1 
 49 
 93 
3 977 
 272 
3 706 

 189 

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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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 
2022  the  amounts  were  significantly  higher  as  they  included  TOR  amounts  related  to  undervaluation 
cases. The evolution in 2023 is explained by the payments received in relation to these cases as well as 
the adjustments of the debts following a Court judgement. In addition the customs duties established in 
November and December 2023 were much lower compared to the same period of the previous year. 

Concerning 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 relates to an 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.  

The Commission 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  due  was 
established  at  EUR  1.6  billion  (net  amount  after  deduction  of  20%  collection  costs).  The  UK  paid  the 
amount  in  two  steps  (June  2022  and  January  2023).  Consequently,  late  payment  interest  was  also 
calculated  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 considerations for the calculation of the estimated TOR losses incurred in the Member 
States for similarly undervalued textiles and footwear imported from China, the cumulative amount still 
due by all Member States is estimated to be below EUR 1 billion. As Member States have paid already a 
higher amount under reservation, a total reduction of EUR 0.9 billion over the original amount has been 
applied (of which EUR 0.5 billion has been effectively reimbursed during 2023). 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 to be EUR 0.5 billion on 31 
December 2023 (see note 2.6.2). 

‘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 2023, as declared and 
certified by the Member States as at 15 October 2023. An estimation is made for the recoverables arising 
after this declaration and up to 31 December 2023. 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. 

73 

 
 
 
2.6.1.2.  UK Withdrawal Agreement 

Annual accounts of the European Union 2023 

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 2023, the net receivable from the UK based on these obligations amounted to 
EUR 15 473 million (2022: EUR 23 871 million), of  which EUR 2 385 million is to be paid within the 12 
months following the reporting date (2022: EUR 9 061 million): 

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

UK share (Article 139) 

8 340 
– 

Article 140  Article 142 
10 411 
– 
10 411 
10 102 
 309 

8 340 
4 588 
3 753 

EUR million 
Other  31.12.2023  31.12.2022 
26 683 
18 867 
(2 812) 
(3 394) 
23 871 
15 473 
14 810 
13 088 
9 061 
2 385 

 115 
(3 394) 
(3 279) 
(1 602) 
(1 677) 

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 2023 the total amount reported to the UK under Article 136, and Articles 140 to 147, was EUR 8 585 
million (2022: EUR 9 815 million), of which EUR 3 572 million was reported in April 2023 and EUR 5 013 
million was reported in September 2023 (2022: EUR 3 418 million and EUR 6 397 million, respectively). 

The total payments received in 2023 amounted to EUR 9 450 million (2022: EUR 10 921 million). Out of 
this amount, EUR 3 998 million related to the remainder of the September 2022 report and was paid in 
five equal instalments in the period January to May 2023 (2022: EUR 5 104 million), EUR 3 572 million 
related  to  the  2023  April  report  and  was  paid  in  four  equal  monthly  instalments  in  the  period  June  to 
September 2023 (2022: EUR 3 418 million), and EUR 1 880 million related to the 2023 September report 
and was paid in three equal instalments in the period October to December (2022: EUR 2 399 million). 

74 

 
 
 
 
   
 
 
 
Annual accounts of the European Union 2023 

Remainder of 
September 2022 
report: 

(due and paid from 
January to May 
2023) 
4 061 
 18 
 12 
– 
– 
4 092 

 (94) 
– 
– 
– 
– 
 (94) 

3 998 

April 2023 
report 

September 2023 
report: 

(due and paid 
from June to 
September 2023) 
2 647 
259 

(due and paid 
from October to 
December 2023) 
1 855 
11 

1 057 
 18 
– 
3 981 

– 
 (313) 
 (54) 
 (37) 
 (7) 
 (410) 

3 572 

 13 
– 
 6 
1 885 

 (5) 
– 
 (0) 
– 
– 
 (5) 

1 880 

EUR million 

Total 
payments 
in 2023 
8 563 
 288 
1 082 
 18 
 6 
9 958 

 (99) 
 (313) 
 (54) 
 (37) 
 (7) 
 (508) 

9 450 

Article 140 
Article 142 
Article 136 
Article 147 
Article 143 

Article 141 
Article 143 
Article 144 
Article 145 
Article 146 

Total 

Furthermore,  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.  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 (see note 2.6.1.1). 

The remaining balance of the September 2023 invoice at the end of the year, amounting to EUR 3 133 
million, is payable in five equal monthly instalments in the period January to May 2024 (2023: EUR 3 998 
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 2023, the total amount recognised as a receivable amounted to EUR 8 340 million (2022: EUR 
17 029 million), of which EUR 3 753 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 2022 and the total amount recognised as a receivable at 31 December 2023: 

Amount owed by the UK at 31.12.2022 
Net financial corrections related to 2014-2020 or previous programme periods 
(including adjustment of 2022 deductions) 
TOR relating to 2020 and made available to the Union in 2023 
(including adjustment of 2022 deductions) 
Net payments received from the UK in 2023 

Adjustment of estimated non-implementation 

Total 

Non-current 
Current 

EUR million 

17 029 

 (29) 

– 
(8 563) 

 (95) 

8 340 

4 588 
3 753 

The year-on-year decrease of the total amount recognised as a receivable amounted to EUR 8 688 million 
(2022: EUR 11 591 million) and was mainly due to the payments received from the UK in 2023. 

75 

 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

The  amount  to  be  paid  within  12  months  from  the  reporting  date  (EUR  3  753  million),  comprises  the 
remaining balance of the September 2023 invoice (EUR 3 092 million), which is payable by the UK in the 
period January to May 2024, the amount invoiced in April 2024 (EUR -10 million), which is payable to the 
UK in the period June to September 2024, and the part of the amount to be invoiced in September 2024 
which  is  payable  by  the  UK  in  the  period  October  to  December  2024  (EUR  672  million).  The  amount 
invoiced  in  April  2024  is  composed  of  EUR  910  million  relating  to  the  UK’s  share  of  the  estimated  RAL 
implementation in 2024 and EUR -920 million relating to the adjustment of the UK share of the RAL due 
to  implementation  in  2023.  The  amount  to  be  invoiced  in  September  2024  and  payable  in  the  period 
October to December 2024 is made up of EUR 683 million relating to the UK’s share of the estimated RAL 
implementation  in  2024  and  EUR  -11  million  relating  to  the  UK’s  share  of  the  estimated  net  financial 
corrections  related  to  2014-2020  or  previous  programme  periods  (including  adjustment  of  2022 
deductions). 

The  estimated  non-implementation  has  been  adjusted  by  EUR  95  million  to  reflect  the  actual 
decommitments  in  2023  as  well  as  the  future  decommitments  of  the  remaining  stock  of  Brexit-RAL  as 
estimated at year-end 2023. 

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 
74 058 
9 207 
270 

Joint Sickness 
Insurance 
Scheme 
5 652 
 703 
10 

9 477 

9 207 
 270 

 713 

 703 
 10 

EUR million 

31.12.2023 

31.12.2022 

79 709 
9 909 
 280 

10 189 

9 909 
 280 

73 008 
9 076 
259 

9 335 

9 076 
 259 

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 2023 to the beneficiaries of the PSEO 
and  to  JSIS  amounted  to  EUR  270  million  and  EUR  10  million,  respectively.  These  amounts  were 
communicated  to  the  UK  as  part  of  the  April  2024  invoice  (and  thus  are  payable  in  four  equal  monthly 
instalments in the period June to September 2024).  

In  addition,  at  31  December  2023  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 9 207 million and EUR 703 million, respectively (2022: EUR 8 434 million and EUR 642 
million).  The  increase  in  the  PSEO  and  JSIS  valuations  was  driven  mainly  by  the  actuarial  loss  from 
changes in financial and demographic assumptions – see note 2.9 for more details. It is noted that while 
actuarial  losses  (or  gains)  from  changes  in  actuarial  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). 

Outstanding 2020 liabilities under Article 142 (5) 

According  to  Article  142 (5),  the  UK  contributes  to  the  liabilities  relating  to  the  Other  retirement 
(pension) schemes as they were recorded in the consolidated accounts of the Union for the financial year 
2020  in  10  instalments  starting  on  31  October  2021  (with  each  annual  instalment  payable  in  eight 
monthly instalments from October to May the following year). These liabilities in the consolidated annual 

76 

 
 
 
 
 
 
Annual accounts of the European Union 2023 

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  2023,  totalling  EUR  69  million,  the  outstanding  UK  share  of  the  Other  retirement  (pension) 
schemes decreased to EUR 222 million at 31 December 2023, 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 147 

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

Total 
Non-current 
Current 

31.12.2023 

EUR million 
31.12.2022 

 115 
 115 

(1 451) 
(1 564) 
 (233) 
 (59) 
 (74) 
 (13) 
(3 394) 
(3 279) 
(1 602) 
(1 677) 

 68 
 68 

 (678) 
(1 637) 
 (313) 
 (54) 
 (111) 
 (20) 
(2 812) 
(2 744) 
(2 953) 
 209 

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.  

In  accordance  with  Article  136  of  the  Withdrawal  Agreement,  the  authorities  of  the  United  Kingdom 
continue to send monthly A account statements providing a summary of the amounts of traditional own 
resources  due  to  the  EU  budget.  These  amounts  (minus  applicable  retention  rate)  are  included  in  the 
total amounts of the subsequent invoice referred to in Article 148 (2) of the Withdrawal Agreement (see 
next  paragraph).  In  case  of  late  payment  of  those  amounts,  interest  is  due  pursuant  to  Article  12  of 
Council Regulation (EU, Euratom) No 609/2014. 

The  UK  is  therefore  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. 

The  net  outstanding  amount  due  from  the  EU  to  the  UK  at  31  December  2023  is  EUR  1 451  million 
(2022: EUR 678 million), of which EUR 1 326 million will have to be paid to the UK within the 12 months 
following the year-end and EUR 125 million will have to be paid to the UK afterwards: 

77 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Amount due to the UK at 31.12.2022 
Amount invoiced to the UK in September 2023 
Payments received from the UK in 2023 
VAT and GNI adjustments (balances exercise 2022) 
VAT and GNI adjustments (balances exercise 2023) 
Interest on late payment of UK traditional own resources 
UK net traditional own resources after 28 February 2021 

Amount due to the UK at 31.12.2023 
Non-current 

Current 

EUR million 

 (678) 
 33 
 (712) 
 (31) 
 (128) 
 42 
 22 
(1 451) 
 (125) 

(1 326) 

The  amount  presented  under  ‘Payments  received  from  the  UK  in  2023’  is  net  of  the  UK’s  share  of  the 
amounts related to the UK customs case of EUR 370 million (see note 2.6.1.1). 

The  amount  presented  under  ‘VAT  and  GNI  adjustments  (balances  exercise  2022)’  corresponds  to  the 
difference  between  the  amount  invoiced  in  April  2024  (EUR  -1  408  million)  and  the  estimate  already 
included  in  the  Brexit  receivable  at  year-end  2022  (EUR  -1  377  million).  The  amount  presented  under 
‘VAT and GNI adjustments (balances exercise 2023)’ corresponds to the estimated amount to be invoiced 
in  April  2025.  The  amount  presented  under  ‘UK  net  traditional  own  resources  after  28  February  2021’ 
corresponds  to  the  amount  invoiced  in  April  2024  (EUR  17.5  million)  and  the  estimated  amount  to  be 
invoiced in September 2024 (EUR 4.6 million). 

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  2023  is  EUR  12.4 
billion (2022: EUR 12.4 billion). A net decrease in these fines of EUR 0.3 billion (EUR 0.5 billion of fines 
issued in 2023 less EUR 0.8 billion of fines confirmed and paid, reduced or cancelled by court decisions) 
was  offset  by  a  decrease  in  the  impairment  of  these  fines  of  EUR  0.3  billion.  The  UK  share  of  the  UK 
relevant fines outstanding at 31 December 2023 is EUR 1.5 billion (2022: EUR 1.5 billion), out of which 
an  amount  of  EUR  32  million  will  be  included  in  the  September  2024  invoice and  paid  to  the  UK  in  the 
period  October  2024  to  May  2025.  In  addition,  the  UK  is  entitled  to  its  share  of  definitive  fines  which 
were no longer outstanding at 31 December 2023 (EUR 18 million, also to be included in the September 
2024 invoice and paid to the UK in the period October 2024 to May 2025) and its share of definitive fines 
that were invoiced in September 2023 but not yet paid at year-end (EUR 8 million, paid to the UK in the 
period  January  to  May  2024).  The  total  UK  share  of  fines  thus  amounts  to  EUR  1.6  billion  (2022:  1.6 
billion), of which EUR 27  million is to be paid within the 12 months following the reporting date (2022: 
EUR 98.6 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 
2023  the  net  amount  to  be  paid  to  the  UK,  all  within  the  next  12  months,  is  EUR  233.3  million  (2022: 
EUR 313 million). This net amount comprises an amount of EUR 243.8 million which was invoiced to the 
UK  in  April  2024  and  includes  the  UK  share  of  the  recoveries  and  net  revenues  collected  in  2023  (EUR 
113.4 million), the excess in provisioning (EUR 73.4 million), the revenue from asset management (EUR 
51.6  million)  as  well  as  EUR  5.4  million  of  adjustments  identified  during  the  agreed-upon  review 
procedures: adjustment for amounts recovered in 2022 for ELM (EUR -90 477), adjustment of the 2022 
current provisioning rate for ELM (EUR 4.8 million), adjustment for amounts recovered in 2022 for EFSI 
(EUR  -11  778)  and  adjustment  of  the  2022  current  provisioning  rate  for  EFSI  (EUR  0.7  million). 
Furthermore,  this  net  amount  comprises  the  remainder  of  the  September  2023  invoice  of  EUR  10.6 
million, which is payable to the EU from January to May 2024. 

78 

 
 
 
 
 
 
Articles 144 – Financial instruments 

Annual accounts of the European Union 2023 

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 2023 the amount to be paid to 
the UK, all within the next 12 months, is EUR 59.4 million (2022: EUR 54 million). This amount includes 
the remainder of the September 2023 invoice of EUR 12 871, which is payable to the UK from January to 
May 2024. 

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

The UK is entitled to its share of the net assets of ECSC i.L. 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 i.L. at 31 December 2020 
amounted to EUR 1.5 billion of which the UK share is EUR 184 million. Following the payment of the third 
instalment  of  EUR  37  million  in  2023,  the  outstanding  amount  at  31  December  2023  is  EUR  74  million 
(2022: EUR 111 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 third instalment of EUR 7 million, the outstanding 
amount at 31 December 2023 is EUR 13 million (2022: EUR 20 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 2023 the estimated amount that 
the UK will have to pay is EUR 115 million (2022: EUR 68 million), of which EUR 12 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 and definitive payments 
Impairment 
Total 
Non-current 
Current 

31.12.2023 
13 762 
(3 014) 
 (887) 
9 861 
– 
9 861 

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

Fines  imposed  on  companies  include  competition  fines  and  CO2  excess  emission  premiums.  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 that are not covered by provisional or definitive payments, EUR 9 324 million (2022: EUR 9 066 
million) of guarantees have been received as coverage.  

Payments received from fined companies are held either as investments under BUFI (see note 2.4.2.1) 
or on bank accounts (see note 2.8). 

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

Revenue from fines imposed on companies for the year totalled EUR 1 414 million (see note 3.5) while 
expenses, i.e. reductions of fines by Court decisions, totalled EUR 597 million (see note 3.16). 

79 

 
 
 
 
Annual accounts of the European Union 2023 

A  contingent  liability  of  EUR  1  751  million  is  disclosed  for  the  possibility  of  having  to  pay  back 
provisionally  paid  amounts  to  fined  companies  who  are  appealing  or  have  the  right  to  appeal  the  fines 
imposed on them – 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 

31.12.2023 
1 131 
 223 
1 354 
 567 
 787 

EUR million 
31.12.2022 
1 936 
 315 
2 250 
1 011 
1 239 

Accrued income includes EUR 1 billion (2022: EUR 1.8 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 0.6 billion) is expected to be recovered at the 
closure  of  the  underlying  2014-2020  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 

31.12.2023 

EUR million 
31.12.2022 

1 666 
 365 
 98 
2 129 

 340 
 286 
 (158) 
 380 
1 186 
 287 
2 321 
4 450 

1 832 
 597 
 103 
2 532 

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

The late payment interest concerns mainly own resources cases and accrued interest on fines covered by 
guarantees  provided  by  fined  companies.  The  decrease  is  linked  mainly  to  the  EUR  1.4  billion  payment  
by the UK for the undervaluation case mentioned under note 2.6.1.1. The non-current amount (EUR 0.4 
billion) relates to the similar cases still ongoing with the 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  006  million  of  the  FGC  receivable  as  at  31 December  2023, 
EUR 1 996 million is classified as financial assets at FVSD (Fair value level 3). Compared to the opening 
balance  as  at  1 January  2023  of  EUR 2  201  million,  in  total  the  FGC  receivable  has  decreased  by 
EUR 195 million  due  to  EUR  324  million  guarantee  premiums  received  in  2023  less  EUR 129 million 
additional guarantee premiums expected to be received in the future. 

80 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

2.7.  INVENTORIES  

Scientific materials 
Other 
Total 

2.8.  CASH AND CASH EQUIVALENTS 

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

Total 

31.12.2023 
 60 
 18 
 78 

EUR million 
31.12.2022 
 54 
 28 
 82 

Note 

2.8.1 
2.8.2 
2.8.3 
2.8.4 

EUR million 
31.12.2023  31.12.2022 
21 413 
 178 
 8 
– 
21 598 
19 929 
2 713 
 914 
1 344 
 47 

22 620 
 312 
 7 
 0 
22 940 
12 539 
2 279 
 540 
1 281 
 37 

39 616 

46 544 

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  2023  is  driven  by  the  following 
main elements: 

•  An  amount  of  EUR  15  billion  of  non-implemented  budget  appropriations  at  year-end,  of  which 
EUR  11.4  billion  relates  to  assigned  revenues  and  EUR  3.6  billion  relates  to  payment 
appropriations (including EUR 1.3 billion of EAGF); 

•  An amount of EUR 3.7 billion belonging to agencies’ treasuries managed by the Commission that 

has not been spent at year end; 

•  An amount of EUR 3.2 billion to be reimbursed to Member States in January 2024; and 

•  An amount of EUR 0.7 billion of definitive fines not yet budgeted. 

2.8.2.  Unified funding approach 

Under  the  unified  funding  strategy,  part  of  the  borrowings  stay  in  cash  held  on  a  bank  account  at  the 
European Central Bank (ECB). The purpose is to keep liquidity for upcoming disbursement obligations and 
to  maintain  a  defined  liquidity  buffer,  while  avoiding  excessive  balances  (see  also  notes  6.4  and  6.5).  
The cash levels in this account fluctuate over the course of the year. At end 2023, there was a very high 
level of disbursements to Member States under NGEU, which resulted in a lower end of year cash balance 
on the ECB account than in 2022. 

81 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.8.3. 

Financial instruments 

Annual accounts of the European Union 2023 

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 2023, of which EUR  0.5  billion relates to COSME 
Loan Guarantee Facility (COSME LGF) – see note 4.1.2. It also includes EUR 0.3 billion cash equivalents 
(term deposits and 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 0.1 billion as at 31 
December  2023),  which  is  held  in  the  Commission’s  central  treasury.  Cash  belonging  to  financial 
instruments can only be used by the programmes concerned. 

2.8.4. 

Fines 

This is cash received in connection with fines issued by the Commission to companies for which the case 
is still open. 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 
provisionally cashed fines to companies 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), with some 
of the fund assets being cash at year-end.  

82 

 
 
Annual accounts of the European Union 2023 

LIABILITIES 

2.9.  PENSION AND OTHER EMPLOYEE BENEFITS 

2.9.1.  Net employee benefit scheme liability 

Pension 
Scheme of 
European 
Officials 
82 718 
N/A 
82 718 

Other 
retirement 
benefit 
schemes 
1 808 
 (34) 
1 774 

Joint Sickness 
Insurance 
Scheme 

31.12.2023  
Total 

EUR million 
31.12.2022  
Total 

6 735 
 (419) 
6 316 

91 261 
 (453) 
90 808 

81 070 
 (453) 
80 617 

Defined Benefit Obligation 
Plan assets 
Net liability 

The increase in the total employee benefits liability is primarily driven by the increase in the net liability 
of the Pension Scheme of European Officials (PSEO), the largest scheme in place. The PSEO liability has 
increased  mainly  because  of  the  actuarial  losses  from  changes  in  the  underlying  financial  assumptions 
(see  note  2.9.4).  This  follows  a  decrease  in  the  real  discount  rate  in  the  year,  partially  reversing  the 
impact  of  the  sharp  increase  in  rates  observed  in  the  previous  year.  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  additional  increase  in  the  liability  is  mainly  due  to  actuarial  losses  from  changes  in  demographic 
assumptions, resulting from an update of the actuarial life table in the main employee benefit schemes. 
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 11.1%. 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 
2023 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 
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. 

83 

 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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 1.3 
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 31.12.2022 
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 31.12.2023 

Pension Scheme 
of European 
Officials  
73 126 

Other 
retirement 
benefit schemes 
1 880 

Joint Sickness 
Insurance 
Scheme 
6 064 

EUR million 
Total 

81 070 

2 589 
2 629 
– 

 479 

1 892 

4 176 

 67 
 61 
 (239) 

 217 
 218 
– 

2 873 
2 908 
 (239) 

 8 

 32 

 74 

 (71) 

 415 

 212 

2 136 

 218 

4 468 

(2 172) 
82 718 

 (75) 
1 808 

 (124) 
6 735 

(2 371) 
91 261 

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 in the previous year for 2023 and what really occurred in 2023. This 
item also reflects the impact of newcomers (staff members present in the current exercise but not in the 
previous one). 

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 when the estimated values of those assumptions are updated in order to 
reflect the 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. 

84 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.9.3. 

Plan assets 

Annual accounts of the European Union 2023 

Present value as at 31.12.2022 
Net movement in plan assets 
Present value as at 31.12.2023 

Other retirement 
benefit schemes 
 63 
 (29) 
 34 

Joint Sickness 
Insurance Scheme 
 390 
 29 
 419 

EUR million 
Total 

 453 
 (1) 
 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 

2023 

3.0% 
2.2% 
0.8% 
1.1% 

2022 

3.6% 
2.4% 
1.1% 
1.5% 

63/64/66 

63/64/66 

3.1% 
2.2% 
0.8% 
1.1% 
1.7% 

3.6% 
2.4% 
1.1% 
1.6% 
2.3% 

63/64/66 

63/64/66 

Mortality rates for 2023 are based on the updated EU Civil Servants Life Table – EULT 2023, incorporating 
a  dynamic  trend  over  a  20  year  horizon.  The  update  of  the  mortality  assumption  resulted  in  actuarial 
losses  from  changes  in  demograpic  assumptions  in  2023  and  contributed  to  the  overall  increase  in  the 
total employee benefit liability. 

The nominal discount rate is determined as the value of the Euro zero-coupon yield (with a maturity of 19 
years  as  of  December  2023  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:  the  break-even  inflation  is 
retrieved by comparing the yields of inflation-linked and regular government bonds of the main European 
financial  markets.  The  real  discount  rate  is  calculated  from  the  nominal  discount  rate  and  the  expected 
long-term inflation rate. 

In  2023,  the  evolution  of  the  nominal  interest  rates  and  of  the  inflation  rates,  resulted  in  an  overall 
decrease  in  the  real  discount  rate,  thus  changing  the  course  of  the  previously  observed  increase  and 
contributing to the actuarial losses 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. 

85 

 
 
 
 
 
 
 
 
 
 
 
 
Pension Scheme of European Officials sensitivity 

Annual accounts of the European Union 2023 

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% 
1 585 

(1 541) 

Increase 0.1%  Decrease 0.1% 
1 352 

(1 316) 

2023 

EUR million 

2022 

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% 
(1 493) 

1 532 

Increase 0.1%  Decrease 0.1% 
(1 280) 

1 312 

2023 

EUR million 

2022 

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

2023 

EUR million 

2022 

Defined benefit obligation 

  One year increase  One year decrease  One year increase  One year decrease 
 988 

 (795) 

 (727) 

1 076 

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 

2023 

EUR million 

2022 

Increase 0.1%  Decrease 0.1% 

Increase 0.1%  Decrease 0.1% 

 12 

 (12) 

 10 

 (10) 

 166 

 (162) 

 148 

 (144) 

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% 
 135 

 (132) 

Increase 0.1%  Decrease 0.1% 
 121 

 (118) 

2023 

EUR million 

2022 

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% 
 25 

 (25) 

Increase 0.1%  Decrease 0.1% 
 22 

 (23) 

2023 

EUR million 

2022 

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

2023 

EUR million 

2022 

Defined benefit obligation 

  One year increase  One year decrease  One year increase  One year decrease 
 184 

 (188) 

 (173) 

 199 

86 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

2.10.  PROVISIONS 

Amount at 
31.12.2022 

Additional 
provisions 

Unused 
amounts 
reversed 

Amounts 
used 

Transfer 
between 
categories 

Change in 
estimation 

Amount at 
31.12.2023 

EUR million 

 277 
 71 

1 745 

 1 
 677 
2 771 
2 199 

 1 
 754 

– 

 1 
 210 
 966 
 135 

 (240) 
 (1) 

– 

 (1) 
 (166) 
 (408) 
 (241) 

 (37) 
 (2) 

 (45) 

– 
 (1) 
 (84) 
 (46) 

– 
– 

– 

– 
– 
– 
 (34) 

– 
 1 

 67 

 0 
 21 
 90 
 90 

 1 
 823 

1 768 

 1 
 742 
3 334 
2 102 

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

Current 

 571 

 831 

 (167) 

 (38) 

 34 

 (0) 

 1 233 

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 2023, this resulted in a provision of 
EUR 1 768 million, split between amounts expected to be used in 2024 (EUR 34 million) and afterwards 
(EUR 1 733 million).  

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

87 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

2.11.   FINANCIAL LIABILITIES 

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

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

Total 

2.11.1.  Financial liabilities at amortised cost  

Note 

31.12.2023 

EUR million 
31.12.2022 

2.11.1 
2.4.2.2 
2.11.2 

2.11.1 
2.4.2.2 
2.11.2 

430 633 
 8 
 131 
430 771 

21 424 
 52 
6 137 
27 613 
458 385 

323 798 
 9 
 177 
323 985 

22 022 
 15 
6 279 
28 316 
352 301 

Note 
2.11.1.1 
2.11.1.2 

31.12.2023 
450 561 
1 496 
452 057 
430 633 
21 424 

EUR million 
31.12.2022 
344 303 
1 517 
345 820 
323 798 
22 022 

Borrowings  
Other financial liabilities 
Total 
Non-Current 
Current 

2.11.1.1.  Borrowings  

Total at 31.12.2022 
New borrowings - nominal 
Repayments 
Changes in carrying amount 
Total at 31.12.2023 
Non-current 
Current 

SURE 

EFSM 

BOP 

MFA  Euratom 

Total 

EUR million 

Unified 
Funding 
Approach 
183 129 
159 205 
(45 400) 
(4 205) 

99 130 
– 
– 
 (145) 

46 587 
– 
(3 500) 
 7 
292 728  98 984  43 095 
40 084 
275 337 
3 010 
17 391 

98 880 
 104 

 201 
– 
– 
 0 

14 929 
 290 
 (60) 
 79 
 201  15 238 
14 488 
 200 
 750 
 1 

 327 
– 
 (13) 
 (0) 
 314 
 300 
 14 

344 303 
159 495 
(48 973) 
(4 264) 
450 561 
429 290 
21 271 

The nominal amount of borrowings is EUR 458.5 billion (2022: EUR 348.0 billion) and they are long-term 
bond  issuances,  except  for  the  unified  funding  where  there  are  short  term  EU-bills  of  EUR  15.2  billion 
(2022: EUR 17.0 billion). The net new borrowing in 2023 was EUR 110.5 billion (nominal). 

The  amounts under  SURE, EFSM,  BOP,  MFA,  Euratom  are  ‘back-to-back’ transactions  which means that 
the Commission issues a single bond to fund a single loan agreement, on the same terms (interest rate, 
maturity) - see note 2.4.1.1. 

The  ‘unified funding’  finances  the NGEU  loans and non-repayable support  as well  as  the MFA+ loans to 
Ukraine. The Commission uses a pooled funding approach where the borrowings are not directly funding 
specific disbursements. Instead, the debt is issued according to an annual borrowing plan, with long term 
bonds and short term bills. The Commission uses auctions and syndications to issue these securities. It 
then  passes  on  the  costs,  in  the  most  cost-effective  and  equitable  way,  to  the  loan  recipients  for  the 
loans and to the EU budget for the non-repayable support. This funding flexibility, also requires a liquidity 
buffer  for  an  efficient  liquidity  management,  see  note  2.8.2.  In  the  context  of  the  unified  funding 
strategy,  the  Commission  issues  short-term  EU-bills  (3  or  6  months),  which  may  be  repaid  during  the 

88 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

same  or  next  year.  The  EUR  45.4  billion  in  the  line  ‘repayments’  refers  to  such  short  term  borrowings. 
The net new borrowing in 2023 was EUR 113.8 billion (nominal). 

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). In particular, for the unified funding 
the line ‘change in carrying amount’ refers to: 

a)  Increase in accrued interests of EUR 1.7 billion due to the increase in the borrowings; 

b)  Increase in discounts of EUR 5.8 billion, which mainly refers to new discounts on the  2023 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) 

Unified funding 
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 
Other 

Total 

Finance lease liabilities 

31.12.2023 
(0.49)% - 4.03% 
(0.48)% - 2.78% 
(0.03)% - 3.79% 
2.95% 
(0.14)% - 3.86% 
(0.08)% - 4.06% 

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% 

31.12.2023 

EUR million 
31.12.2022 

 750 
 288 
 306 
1 343 

 91 
 55 
 7 
 153 
1 496 

 847 
 296 
 106 
1 249 

 103 
 48 
 117 
 268 
1 517 

Land and buildings 
Other fixed assets 
Total at 31.12.2023 
Interest element 
Total future minimum lease payments at 
31.12.2023 
Total future minimum lease payments at 
31.12.2022 

EUR million 

Future amounts to be paid 

< 1 year 
 87 
 4 
 91 
 30 

 121 

 143 

1-5 years 
 342 
 9 
 352 
 96 

 448 

 524 

> 5 years  Total Liability 
 827 
 14 
 841 
 181 

 398 
– 
 398 
 55 

 453 

1 022 

 521 

1 188 

89 

 
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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

Included  under  the  headings  ‘Other’,  EUR  184  million  financial  liabilities  relates  to  contributions  from 
Member  States  and  other  donors  to  the  EU  programmes,  in  particular  to  InvestEU  (see  note  4.1.1), 
whereby the EU has an obligation to return any unused funds to the contributor. 

2.11.2.  Financial guarantee liabilities 

31.12.2023 

Financial 
guarantee 
receivable  
(Note 2.6.2) 

Financial 
guarantee 
 liability 

EUR million 

31.12.2022 

Financial 
guarantee 
receivable   

(Note 2.6.2) 

Financial 
guarantee 
 liability 

 51 
1 789 
 4 
 117 
 10 
1 970 

 0 
 9 
 27 
 36 

2 006 
1 666 
 340 

2 170 
1 863 
 196 
 920 
 367 
5 515 

 338 
 266 
 149 
 753 

6 268 
 131 
6 137 

 47 
2 039 
 3 
 46 
 0 
2 134 

 0 
 37 
 29 
 66 

2 201 
1 832 
 369 

2 358 
2 178 
 180 
 332 
 203 
5 252 

 617 
 422 
 166 
1 204 

6 456 
 177 
6 279 

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

EU financial instrument 
programmes 
COSME 
Horizon 2020 
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 financial guarantee receivable leg (presented under the 
exchange  receivables  heading  –  see  note  2.6.2)  and  a  financial  guarantee  liability  is  recognised 
representing the EU liabililty for coverage of the future guarantee claims.  

The  ELM  guarantee  and  EFSI  guarantee  remain  the  most  significant  of  the  financial  guarantee 
programmes, with a financial guarantee liability of EUR 2 170 million and EUR 1 863 million respectively. 
While  in  return  for  the  EFSI  guarantee,  the  EU  is  entitled  to  an  expected  remuneration  of 
EUR 1 789 million  –  recognised  as  a  financial  guarantee  receivable  –  covering  to  a  large  extent  the 
liability,  for  the  ELM  guarantee  the  expected  revenues  are  EUR  51  million,  thus  covering  only  a  small 
fraction  of  the  guarantee.  This  is  due  to  a  high  share  of  EU  subsidisation  of  the  ELM.  In  2023,  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. 

90 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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 31.12.2023 

Gross 
Amount 

Adjustments 

EUR million 
Net Amount 
at 31.12.2022 

 300 

 (0) 

7 251 

2 062 

22 427 

1 124 

1 859 

(1 995) 

 (310) 

 (225) 

 (407) 

 300 

5 256 

1 752 

 80 

6 258 

2 796 

 (0) 

(1 614) 

 (368) 

22 427 

24 629 

 899 

1 452 

1 075 

1 527 

 (170) 

 (467) 

 80 

4 644 

2 428 

24 629 

 904 

1 060 

35 023 

(2 937) 

32 085 

36 366 

(2 620) 

33 745 

12 503 

3 248 

2 277 

 402 

N/A 

N/A 

N/A 

N/A 

12 503 

15 795 

3 248 

2 277 

 402 

3 764 

1 679 

 357 

N/A 

N/A 

N/A 

N/A 

15 795 

3 764 

1 679 

 357 

53 453 

(2 937) 

50 516 

57 961 

(2 620) 

55 341 

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 decrease in RRF payables by EUR 2.2 billion indicates that there were less payment requests received 
towards the end of the year for which the assessment of milestones and targets was still pending. For the 
decrease in EAGF payables see note 2.13. 

The CPR (Common Provisions Regulation 2013/1303 and 2021/1060) 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 on 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  2023  totalled  EUR 8.9  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 2023, EUR 5.1 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  2023  was  due  to  the  adoption  of  the  amending  budget  No  4/2023  on  22 
November  2023.  According  to  this  legal  provision,  the  resulting  amounts  were  returned  to  the  Member 
States on the first working day of January 2024. It was a similar situation at end 2022. 

91 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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 

31.12.2023 
76 237 
 182 
 386 
76 805 

31.12.2023 
3 709 
28 339 
17 895 
11 052 
3 882 
11 360 
76 237 

EUR million 
31.12.2022 
85 870 
 127 
 167 
86 164 

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

Accrued  charges  refer  to  recognised  expenses  for  which  the  Union  has  still  to  receive  cost  claims.  The 
decrease in RRF is reflecting the pace of implementation of this instrument, as the estimate is based on 
the  short  term  payments  forecast.  The  decrease  in  EAFRD  relates  to  the  fact  that  the  previous 
programming period  is  coming to  an  end;  on  the other  hand,  the new  programming period has  not  yet 
reached  its  cruising  speed.  The  increase  in  EAGF  accrued  charges  is  due  to  a  slower  implementation  at 
the  Members  State  level  as  less  than  expected  actual  claims  were  submitted  and  thus  more  had  to  be 
estimated  at  year-end.  The  increase  is,  therefore,  counter-balanced  by  a  corresponding  decrease  in 
payables  –  see  note  2.12.  For  cohesion  policy,  only  a  small  part  (EUR  1.1  billion)  relates  to  the  new 
programming  period,  while  the  majority  of  the  remaining  amount  (EUR  13.8  billion)  relates  to  the 
previous MFF. 

92 

 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

NET ASSETS 

2.14.  RESERVES 

Other reserves 
Total 

Note 

31.12.2023 
1 052 
1 052 

EUR million 
31.12.2022 
1 312 
1 312 

The  amount  relates  primarily  to  the  reserves  of  the  ECSC  i.L.  (EUR 620 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 i.L., 
as well as to the reserve fund of the European Union Intellectual Property Office, ensuring the continuity 
of its operations (EUR 289 million). 

2.15.  AMOUNTS TO BE CALLED FROM MEMBER STATES 

Amounts to be called from Member States at 31.12.2022 
2022 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 31.12.2023 

EUR million 

132 637 
2 519 
6 877 
 (249) 
71 437 
213 221 

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. 

93 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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 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 2023 compared to 2022 is explained by multiple factors: as for instance the increase in other types of 
own resources (such as VAT and Plastics), an increase of other revenue and a reduction of the payment 
appropriations.  

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 level of import 
duties reflects essentially the combination of fluctuations in the value of imports from outside the EU and 
changes  in  the  common  tariff,  which  has  been  lowered  on  many  occasions  following  the  negotiations 
within the World Trade Organisation (WTO), and specific agreements granting tariff preferences to certain 
trading  partners  or  to  certain  products.  The  level  thus  depends  also  on  the  general  economic  situation, 
the level of world prices and the impact of exchange rates. 

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. 

94 

 
 
 
Annual accounts of the European Union 2023 

REVENUE FROM NON-EXCHANGE TRANSACTIONS: 
TRANSFERS 

3.5.  FINES 

Revenue  of  EUR  1 748  million  (2022:  EUR  915  million)  relates  mainly  to  fines  the  Commission  has 
imposed on companies for breaches of EU competition rules (EUR 898 million) and CO2 excess emission 
premiums (EUR 516 million), as well as on Member States for infringements of EU law (EUR 382 million).   

3.6.  RECOVERY OF EXPENSES 

Shared management 
Direct management 
Indirect management 
Total 

2023 
 691 
 102 
 10 
 803 

EUR million 
2022 
1 110 
 90 
 19 
1 219 

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  2024.  The  amounts  to  be  recovered  represent 
essentially  the  difference  between  amounts  initially  declared  as  eligible  during  the  accounting  year  and 
the  amounts  confirmed  as  eligible  in  the  annual  accounts  of  the  Member  States.  A  low  amount  means 
that the controls in place at Member State level enabled the detection of ineligible amounts early in the 
process.  

3.7.  UK WITHDRAWAL AGREEMENT 

This  revenue  relates  to  the  net  amounts  owed  by  the  UK  under  the  WA  signed  following  its  departure 
from  the Union in 2020  (see  note  2.6.1.2),  adjusted  each  year  in  accordance  with  the  requirements of 
the WA. The revenue was zero for 2022 and instead an expense was recognised – this was 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). 

95 

 
 
 
 
Annual accounts of the European Union 2023 

3.8.  OTHER REVENUE FROM NON-EXCHANGE 

TRANSACTIONS 

Contributions from Member States: 
     Innovation Fund 
     External aid 
     Invest EU 
Staff taxes and contributions 
Contribution from other entities to the EC 
Contribution from EFTA, third countries and accession countries 
Transfer of assets 
Budgetary adjustments 
Adjustment of provisions 
Other 
Total 

2023 

1 812 
 165 
 179 
1 565 

3 456 
1 770 
 280 
(1 058) 
 407 
 224 
8 800 

EUR million 
2022 

3 192 
 204 

1 439 

1 307 
 321 
3 246 
 991 
 695 
11 395 

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. The decrease 
compared  to  2022  is  because  starting  in  2023,  the  Emission  Trading  System  (ETS)  revenues  are  now 
utilised to finance REPowerEU, see below. 

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 other entities to the EC include primarily reflows (EUR 0.5 billion) transferred by EIB 
under  the  ACP  (African,  Caribbean  and  Pacific)  and  the  OCT  (Overseas  Countries  and  territories) 
Investment  Facilities  and  auctioning  revenue  (EUR  2.6  billion)  generated  under  the  ETS  allowances,  a 
funding source also used to provide additional support to Member States through REPowerEU chapters. 

Contributions  from  EFTA  countries  amount  to  EUR  752  million  and  contributions  from  third  countries 
mainly include financial contributions to Horizon Europe (EUR 387 million). 

The budgetary adjustment is mainly linked to the adjustments in the VAT and GNI-based own resources 
from  previous  financial  years.  With  this  operation,  the  Commission  redistributes  the  total  VAT  and  GNI 
balances,  positive  or  negative,  to  the  Member  States  in  accordance  with  their  GNI  key.  This  year,  the 
balance is negative (EUR -3 620 million). Last year the amount was zero because there was a change in 
the legislation to postpone the date of payment of the VAT and GNI balances. The budgetary adjustments 
also include the budget surplus from the previous year which amounted to EUR 2 519 million (2022: EUR 
3 227 million). 

Other  revenue  from  non-exchange  transactions  includes  the  ITER  Host  State  and  Membership 
contributions  to  Fusion  for  Energy,  the  European  Joint  Undertaking  for  ITER  and  the  Development  of 
Fusion Energy (EUR 120.7 million). 

96 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

REVENUE FROM EXCHANGE TRANSACTIONS 

3.9.  FINANCIAL REVENUE 

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

2023 

 (121) 
2 305 
1 778 
 229 
 9 
 887 

1 695 
 149 
 46 
 6 
6 983 

EUR million 
2022 

 (927) 
1 238 
 124 
 325 
 2 
1 282 

 128 
 294 
 114 
 20 
2 602 

Interest revenue on late payments stems mainly from fines and own resources contributions due and not 
paid  on  time.  The  negative  amount  is  mainly  explained  by  the  reduction  of  the  accrued  late  payment 
interest revenue for the TOR cases referred to in note 2.6.1.1. related to textiles and footwear imported 
from  China by the  27 Member States (EUR  121 million) and the reduction of the accrued late payment 
interest revenue for a case against Netherlands for evading anti-dumping duties on solar panels (EUR 177 
million). This was partially  offset by an  increase in late payment interest from fines of  around EUR 135 
million. 

Included under interest from loans are NGEU amounts of EUR 0.7 billion compared to EUR 0.2 billion for 
2022.  The  increase  is  mainly  due  to  the  additional  loans  disbursed  in  2023.  The  effective  interest  rate 
also kept increasing compared to the transactions of 2022 and especially of 2021 where there were very 
low  effective  interest  rates  (see  note  2.4.1).  Another  EUR  0.7  billion  of  interest  relates  to  EFSM. 
Although the outsanding amounts are much lower than for NGEU, they all bear high effective interest rate 
due  to  the  prevailing  market  rates  at  the  time  of  disbursements.  MFA  accounts  for  EUR  0.5  billion 
compared  to  EUR  0.1  billion  in  2022.  The  increase  is  mainly  due  to  the  new  MFA+  disbursements  of 
2023. The interest on SURE loans (EUR 0.3 billion) are lower than other loans because a significant part 
of past transactions had lower or negative interest rates. See also note 2.4.1. 

Interest revenue from cash and cash equivalents is composed mainly of EUR 1.6 billion of interest on the 
bank  account  held  at  the  ECB  for  the  management  of  the  liquidity  pool  related  to  the  unified  funding 
approach (see note 2.8.2). The increase of the interest revenue is mainly due to the raise in the market 
interest rates since late 2022. 

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

Revenue  from  financial  guarantee  contracts  relates  primarily  to  the  amortisation  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 
amortisations 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  2023,  the 
revenue  earned  by  the  EFSI  guarantee  in  relation  to  those  combined  debt  portfolios  amounted  to 
EUR 295 million. 

The revenue related to  financial  guarantee contracts  of EUR  887  million  is off-set by impairment  losses 
for  financial  guarantee  liabilities  amounting  to  EUR  263  million  relating  to:  guarantee  calls  net  of 
recoveries of EUR 459 million and unrealised impairment gains of EUR 196 million (see notes 3.15 and 
6.5). In addition, the EU has subsidised financial guarantee programmes (EUR 762 million) by charging 

97 

 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

no  or  below  market  rate  guarantee  premiums  (note  3.15).  In  total,  the  net  result  from  financial 
guarantee programmes is a deficit of EUR 138 million.  

The gain from non-derivative financial assets at FVSD has significantly increased. The main amounts refer 
to the CPF (EUR  0.9  billion)  and the Innovation  Fund (EUR 0.5 billion). This year had  been  better  than 
2022  for  the  securities  market,  especially  towards  the  end  of  the  year,  due  to  the  expectations  for 
interest  rate  cuts.  This  has  positively  impacted  the  fair  value  of  the  bonds  held  in  the  EU  portfolios 
leading to the recognition of a mostly unrealised fair value gain. 

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 

2023 
 739 
 393 
 75 
 67 
 9 
 679 
1 963 

EUR million 
2022 
 694 
 330 
 121 
 24 
 26 
 475 
1 669 

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. 

98 

 
 
 
 
 
 
Annual accounts of the European Union 2023 

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 

2023 
40 716 

14 605 

52 429 
17 665 
4 251 

EUR million 
2022 
41 031 

16 073 

43 083 
14 649 
3 482 

129 667 

118 318 

The  decrease  of  EUR  1.5  billion  for  EAFRD  and  other  rural  development  instruments  is  explained  by 
delays  in  the  implementation  of  the  programmes,  as  2023  was  the  first  year  of  the  new  CAP  strategic 
plans.  

For  cohesion  policy,  the  implementation  of  the  new  programming  period  starts  to  pick  up  speed  and 
contributes to the increase of expenses. Additionally, there is a significant increase of EUR 2.5 billion in 
the expenses related to Advances to Member States for Financial Instruments under shared management 
(SME excluded), as most of the amounts are now considered as expensed. 

Other expenses  mainly  relate  to  the  European  Maritime  and  Fisheries  Fund  (EUR  0.9  billion), the  Brexit 
Adjustment Reserve (EUR 0.7 billion), Asylum and Migration (EUR 0.7 billion), the Fund for European Aid 
to the Most Deprived (EUR 0.7 billion), as well as the European Union Solidarity Fund (EUR 0.6 billion). 

3.12.  DIRECT MANAGEMENT 

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

2023 
45 664 
36 045 
15 897 
 326 
61 888 

EUR million 
2022 
78 497 
69 461 
14 962 
 568 
94 027 

Despite the significant decrease in RRF expenses, the implementation of the programmes was broadly on 
track, with progress on most milestones and targets in line with initial expectations. 

The  rest  of  the  amounts  under  direct  management  primarily  concern  the  implementation  of  Research 
Policy  (EUR 9.8  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  1.1  billion).  A  further  EUR  2.8  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 

99 

2023 
4 226 
 479 
5 610 
4 902 
15 218 

EUR million 
2022 
3 615 
 630 
4 650 
4 738 
13 634 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Under indirect management expenses, EUR 6.6 billion relates to external actions (mainly in the areas of  
pre-accession, humanitarian aid, international co-operation and neighbourhood). A further EUR 4.1 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 

2023 
8 481 
5 543 
14 023 

EUR million 
2022 
7 957 
6 251 
14 209 

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  2.4  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 
Modification loss 
Other  
Total 

2023 

5 762 
 160 
 45 
 21 

 762 

 263 
6 812 

 137 
 104 
 100 
 189 
14 355 

EUR million 
2022 

1 912 
 161 
 50 
 31 

 514 

 362 
2 108 

2 344 
 126 
– 
 29 
7 637 

Included  in  the  interest  expenses  from  borrowings  are  the  unified  funding  amounts  of  EUR  4.4  billion 
compared  to  EUR  0.9  billion  in  2022.  The  increase  is  mainly  due  to  the  higher  amounts  borrowed.  The 
effective interest rates of the 2023 issuances, for the unified funding, are also higher than in 2022 (see 
note  2.11.1).  The  interest  expenses  for  EFSM  (EUR  0.7  billion)  are  stable.  The  interest  on  SURE 
borrowings  (EUR  0.3  billion)  are  significantly  lower  than  for  the  other  programmes,  taking  into  account 
the amounts borrowed. This is 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. 

The  net  impairment  losses  on  loans  and  receivables  mostly  relate  to  an  additional  impairment  of 
EUR 6.8 billion  recognised  in  2023  for  expected  credit  losses  on  MFA+  loans  to  Ukraine  (see  notes 
2.4.1.1 and 6.5). 

The modification loss relates to an interest rate subsidy granted to Ukraine in 2023 for interests accrued 
on the exceptional MFA loans (see note 2.4.1.1). 

For the significant decrease in the losses from non-derivative financial assets at FVSD, see note 3.9. 

100 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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 

2023 
2 687 
 1 065 
1 443 
 729 
 314 
 448 
 597 
 857 
8 142 

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

The aggregate amount of research and development expenditure recognised as an expense during 2023 
is as follows: 

Research costs 
Non-capitalised development costs 
Total 

2023 
 452 
 149 
 600 

EUR million 
2022 
 430 
 133 
 563 

101 

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

Annual accounts of the European Union 2023 

Natural 
Resources and 
Environment 
– 
– 
– 
– 
– 
 678 
– 
 253 

Migration and 
Border 
Management 
– 
– 
– 
– 
– 
 1 
– 
– 

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

Cohesion and 
Values 

– 
– 
– 
– 
– 
 60 
– 
2 919 

2 979 

 19 
 (21) 

 (2) 

2 978 

Single Market, 
Innovation and 
Digital 
– 
– 
– 
– 
– 
 87 
– 
1 426 

1 512 

1 043 
 163 

1 206 

2 718 

– 

– 

– 
– 
– 

(52 343) 
(17 665) 
(1 125) 

(13 675) 

(40 087) 

(3 339) 

 (549) 

 (539) 

 (253) 
 (516) 
(1 062) 

 (83) 

(3 195) 
 (20) 
 (11) 

– 

– 

(40 716) 

(14 605) 

 931 

 2 
 (29) 

 (27) 

 904 

– 
– 
 (950) 

 (880) 

 (93) 

 (10) 

 (3) 
 (2) 
 (94) 

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 

Neighbourhood 
and the World 

– 
– 
– 
– 
– 
 (25) 
– 
 674 

 649 

 265 
 2 

 268 

 917 

– 

– 

 (86) 
– 
 (116) 

European 
Public 
Administration 
– 
– 
– 
– 
– 
 0 
– 
2 078 

Not assigned 
to MFF 
heading* 
101 287 
19 840 
22 526 
7 225 
1 748 
 2 
 681 
1 450 

EUR million 
Total 

101 287 
19 840 
22 526 
7 225 
1 748 
 803 
 681 
8 800 

2 078 

154 758 

162 909 

 130 
 488 

 617 

5 523 
1 364 

6 887 

6 983 
1 963 

8 946 

2 695 

161 645 

171 855 

– 

– 

– 
– 
– 

– 

– 

– 
– 
 (941) 

(40 716) 

(14 605) 

(52 429) 
(17 665) 
(4 251) 

 1 

– 
 (0) 

 (0) 

 0 

– 

– 

– 
– 
(1 050) 

 0 

 1 
 (4) 

 (3) 

 (3) 

– 

– 

– 
– 
 (69) 

 (350) 

 (718) 

(6 405) 

 (7) 

 234 

(61 888) 

(1 184) 

 (230) 

 (46) 

 (111) 

1 327 

(4 226) 

 (181) 

 (111) 

 (4) 
 (1) 
 (0) 

 (67) 
 (6) 
 (0) 

(5 145) 

(1 371) 
 (168) 
 (389) 

 (3) 

 (16) 

(6 090) 

– 
(11 601) 
 (68) 

(4 368) 
(16 158) 
(13 463) 

 (9) 
(1 710) 
(12 730) 
– 
(1 264) 
(15 110) 
146 535 

(4 902) 
(14 023) 
(14 355) 
– 
(8 142) 
(243 292) 
(71 437) 

(1 824) 
(21 208) 
(18 490) 

 (294) 
(115 373) 
(112 395) 

 (46) 
(57 398) 
(56 495) 

 9 
(2 762) 
(2 761) 

 (77) 
(1 278) 
(1 280) 

 (279) 
(14 004) 
(13 087) 

* ‘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.

102 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

4. 

CONTINGENT LIABILITIES AND ASSETS 

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

4.1.  Guarantees given by the EU budget 

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

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

31.12.2023 

Guarantees given 

Ceiling 

Signed  Disbursed 

27 729 
25 591 
1 077 
25 767 
28 115 
108 279 

27 729 
23 635 
 548 
6 592 
7 660 
66 163 

19 856 
21 551 
 478 
1 433 
 634 
43 953 

EUR million 

Assets 
provisioned* 

2 962 
9 175 
 765 
3 736 
2 222 
18 860 

*  The EUR 3.0 billion of assets provisioned for the EIB ELM guarantees also cover loans and related borrowings under legacy MFA and 

Euratom (see note 2.4.1.1). 

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

31.12.2022 

Guarantees given 

Ceiling 

Signed  Disbursed 

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

30 599 
24 615 
 522 
2 108 
4 515 
62 359 

20 909 
21 084 
 446 
 324 
 156 
42 919 

EUR million 

Assets 
provisioned* 

2 710 
8 571 
 728 
1 722 
1 067 
14 798 

*  The EUR 2.7 billion of assets provisioned for the EIB ELM guarantees also cover loans and related borrowings under legacy MFA and 

Euratom (see note 2.4.1.1). 

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 22.2  billion).  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 2023,  operations  authorised  to  be  signed  but  not  yet  signed  (EUR 42.1  billion)  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). 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. 
For  InvestEU  Member  State  compartment,  the  EU  also  receives  counter  guarantees  from  the  Member 
States and EEA countries (see below). 

103 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EIB ELM guarantees 

Annual accounts of the European Union 2023 

The  EU  budget  guarantees  loans  signed  and  granted  by  the  EIB  from  the  EIB's  own  resources  to  third 
countries.  At  31  December  2023  the  amount  of  loans  outstanding  and  covered  by  the  EU  guarantee 
totalled EUR 19 856 million. The EU budget guarantees: 

• 

• 

EUR 19 534 million via the Guarantee Fund for external actions compartment of the CPF; and 

EUR 322 million directly for loans granted to Member States before accession. 

Included in the guarantees given as at 31 December 2023 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  2023,  EUR 67 million  of  guarantee  calls  net  of  recoveries  have  been  paid  out  (2022: 
EUR 190 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. 

104 

 
Annual accounts of the European Union 2023 

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

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

During 2023, EUR 193 million of net guarantee calls have been paid out from the EFSI Guarantee Fund 
compartment  of  the  CPF,  including  some  guarantee  calls  incurred  in  previus  years  but  temporarily 
covered by the EU revenues hold on the EFSI settlement account at the EIB (2022: EUR 21 million). 

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 2023, sixteen EFSD guarantee agreements were effective. 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  2023,  eleven  budgetary  guarantee  agreements  were  effective  for  a total  ceiling  of 
EUR 28.1 billion,  of  which  EUR  26.0  billion  relates  to  a  guarantee  agreement  signed  with  EIB  as 
a successor of the ELM programme. 

InvestEU guarantee 

The  InvestEU  Regulation  allows  the  Commission  to  provide  up  to  EUR  26.2  billion  in  guarantees  to 
support  investments  with  the  backing  of  the  EU  budget.  This  EU  guarantee  supports  private  and  public 
investments in four policy areas: sustainable infrastructure, research innovation and digitalisation, small 
and  medium-sized  companies,  and  social  investment  and  skills.  Several  financial  partners  like  national 
promotional  banks  are  receiving  the  EU  guarantee.  They  support  investments  by  providing  loans, 
guarantees or equity capital. For example, the financial partners can provide loans to SMEs, participate in 
equity funds or give guarantees to commercial banks for loans they disburse. The Commission can also 
allocate EU budget from other EU programmes to the InvestEU Fund, for example from the HERA Invest 
(health), the European Space programme or the Catalyst (innovation). 

To  create  a  capital  buffer  for  the  losses  from  guaranteed  investments,  the  Commission  is  gradually 
setting  money  aside  (‘provisioning’)  from  the  EU  budget  into  the  CPF.  The  InvestEU  Regulation  has  set 
the provisioning at 40% of the EU guarantee. 

They  EU  guarantee  can  be  increased,  in  addition  to  the  EUR  26.2  billion  mentioned  above,  with  the 
backing from Member States and EEA countries. They can contribute money from their Cohesion Policy, 
RRF  funds or national budgets. For the Member States, the provisioning is set on a case by case basis, 
while the additional EU guarantee backed from EEA countries is 40% provisioned with cash contributions. 
The  cash  from  Member  States  and  EEA  countries  is  kept  in  the  CPF.  The  non-provisioned  amount  is 
covered with counter guarantees from the Member States and the EEA countries. At 31 December 2023, 

105 

 
Annual accounts of the European Union 2023 

there were agreements with six Member States and two EEA countries, based on which the Commission 
may provide additional EU guarantee of EUR 2.3 billion to financial partners, out of which EUR 1.7 billion 
is to be backed by cash contribution and EUR 0.6 billion with counter guarantees. Indeed, EUR 2.1 billion 
of  such  guarantee  agreements  had  been  signed  until  31  December  2023,  with  several  implementing 
partners.  

UK obligations arising from its departure from the EU 

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

For  EIB  external  lending  mandate  loans  (ELM),  the  value  of  the  EU  budgetary  guarantee  at  the 
withdrawal  date,  for  the  operations  approved  by  the  withdrawal  date,  was  EUR  33.7  billion.  At  31 
December  2023  this  had  changed  to  EUR  22.2  billion  (2022:  EUR  24.6  billion).  The  UK  share  of  this 
contingent liability at 31 December 2023 is thus EUR 2.8 billion (31 December 2022: EUR 3.1 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 284 million at 31 December 2023, 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 2023 this remained 
at  EUR  18.6  billion  (2022:  EUR  18.6  billion).  The  UK  share  of  this  contingent  liability  at  31  December 
2023 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 708 million at 31 December 2023, 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 2023 for the operations approved on or after the withdrawal date 
and up to 31 December 2020 amounted to EUR 63 million (EUR 57 million for EFSI and EUR 6 million for 
ELM),  reducing  correspondingly  the  UK  provisioning.  The  amount  due  to  the  UK  in  2024  is  EUR  233.3 
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 
31.12.2023  31.12.2022 

2 352 
 649 
 526 
 511 
4 037 

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 avoiding 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. 

106 

 
 
 
UK obligations arising from its departure from the EU 

Annual accounts of the European Union 2023 

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

4.2.  Contingent liabilities relating to legal cases 

4.2.1. 

Legal cases in the area of fines 

At  31  December  2023, the  contingent liabilities  relating  to  fines  amounted  to EUR  2  231  million  (2022: 
EUR  2  990  million).  This  amount  includes  fines  imposed  on  companies  (EUR  1  751  million,  see  note 
2.6.1.3)  and  fines  imposed  on  Member  States  (EUR  479  million)  that  have  been  provisionally  paid  and 
for which either an appeal has been lodged or for which it is unknown whether an appeal will be made. 
The  contingent  liability  will  be  maintained  until  a  judgement  by  the  Court  of  Justice  of  the  European 
Union is delivered 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 or Member States 
without budgetary impact. The amount of fines is only recognised as budgetary revenue when the fines 
are definitive (Article 107 FR).  

The  decrease  of  EUR  0.8 billion  is  mainly  due to  a provisional payment  from one  fined  company,  which 
became definitive in February 2024 after a judgement of the Court of Justice of the European Union. 

4.2.2.  Other legal cases 

Agriculture 
Other 
Total 

Agriculture 

31.12.2023 
 84 
 73 
 157 

EUR million 
31.12.2022 
 194 
2 909 
3 103 

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. 

Other legal cases 

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

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 18 million 
(2022: EUR 384 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. 

107 

 
 
 
 
Annual accounts of the European Union 2023 

4.3.  CONTINGENT ASSETS 

Guarantees received: 
     Performance guarantees 
     Other guarantees 
Other contingent assets 
Total 

31.12.2023 

EUR million 
31.12.2022 

 249 
 6 
 15 
 270 

 282 
 6 
 19 
 307 

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

108 

 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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 2023. 

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 3.2 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 are 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 2023 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 
31.12.2023  31.12.2022 
364 503 
406 284 
770 786 

466 467 
329 939 
796 407 

5.1.  OUTSTANDING BUDGETARY COMMITMENTS NOT YET 

EXPENSED 

Outstanding budgetary commitments not yet expensed 

31.12.2023 
466 467 

EUR million 
31.12.2022 
364 503 

The  amount  disclosed  above  is  the  budgetary  RAL  (‘Reste  à  Liquider’)  of  EUR 543  003  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  2022  is  mainly  related  to  the  inscription  of  RRF/REPowerEU  budgetary 
commitments during 2023. 

109 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

that  outstanding  pre-financing  advances  at  31 December 2023 

It  should  be  noted 
totalled 
EUR 91.7 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 
Security and Defence 
ITER 
Connecting Europe Facility 
Space Programmes 
HorizonEU 
EU Solidarity Fund 
RRF non-repayable support commitments 
RESCUE 
EURATOM 
Brexit Adjustment Reserve 
Fisheries agreements 
Operating lease commitments 
Other contractual commitments 
Total 

31.12.2023 
239 903 
62 365 
5 932 
 743 
6 926 
5 570 
2 886 
 589 
 502 
 357 
 253 
 252 
– 
 166 
2 528 
 968 
329 939 

EUR million 
31.12.2022 
298 948 
82 372 
7 414 
 953 
5 855 
1 811 
3 548 
 322 
 700 
– 
– 
 362 
 296 
 265 
2 539 
 896 
406 284 

* As of 2023, the amounts concerning security and defence (including comparatives) are presented separately from the 

migration and border management. 

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.  

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  four  lines  of  the  table  above  relate  to  the  Heading  2A  (Economic, 
Social  and  Territorial  Cohesion),  Heading  3  (Natural  Resources  and  Environment),  Heading  4  (Migration 
and Border Management) and Heading 5 (Security and Defence) of the MFF 2021-2027. They represent 
the outstanding amounts that the EU will commit budgetarily and then pay after 31 December 2023.  

110 

 
 
 
 
 
 
ITER – International Thermonuclear Experimental Reactor 

Annual accounts of the European Union 2023 

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. 

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’. 

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. 

Horizon Europe 

These are amounts committed to the Horizon Europe programme for secured connectivity, 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 agreements with ESA. Article 12.8 of Regulation 
(EU) 2021/695 authorises the use of annual instalments. 

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) No 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  March  2020.  The  amount  disclosed 
represents the legal commitments not yet covered by budgetary commitments.   

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. In 2023, the RRF 
was  amended  by  Regulation  (EU)  2023/435  to  provide  additional  support  to  Member  States  through 
REPowerEU  chapters  for  reforms  and  investments  fostering  independence,  security  and  sustainability  of 
the Union’s energy supply.  

RESCUE 

RescEU  is  a  European  reserve  of  response  assets  and  capabilities  established  under  the  Union  Civil 
Protection Mechanism, as part of the 2019 legislative revision of Decision No 1313/2013/EU. The rescEU 
reserve was set up to act as a last resort when national capacities and those capacities committed in the 

111 

 
Annual accounts of the European Union 2023 

European  Civil  Protection  Pool  are  not  able  to  ensure  an  effective  response  to  the  various  kinds  of 
disasters.  The  European  Union  finances  those  response  capacities  as  a  preparedness  measure  to  make 
them available in case of need for response operations under the Union Civil Protection Mechanism. The 
priority  domains  of  developing  capacities  under  rescEU  are  the  areas  of  aerial  forest-firefighting, 
chemical, biological, radiological and nuclear incidents, emergency medical response, as well as transport 
and logistics. 

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.  

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. 

Fisheries agreements 

These  represent  commitments  entered  into  with  third  countries  for  operations  under  international 
fisheries agreements up to 2028. The commitments made are based on Council decisions for each third 
country  (e.g.  agreement between  the  EU  and  the  Republic  of  Kiribati  and  the  Implementation  Protocol; 
OJ  L2023/2187  and  2188,  18.10.2023)  and  are  considered  specific  international  treaties  with  multi-
annual rights and obligations. 

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 
 441 
 13 
 454 

1- 5 years 
1 051 
 35 
1 086 

> 5 years 
 984 
 5 
 989 

EUR million 

Total 
2 476 
 52 
2 528 

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 375 million still due under the headlease contract. 

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 490 million). 

112 

 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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  i.L.  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  amortised  cost.  The  carrying  amount  of  those  financial  assets  and  liabilities  is 
considered as a reasonable approximation of their fair value. 

Borrowing and lending activities for financial assistance and NGEU 

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 

113 

 
 
 
Annual accounts of the European Union 2023 

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 were traditionally financed by ’back-to-back‘ borrowings, which do not generate open 
interest rate or currency positions that arise under a unified funding approach. A unified funding approach 
is at the moment applied for the NGEU and MFA+ instruments and will be applied for the Ukraine Facility 
as of 2024, but it is available for use also for other financial assistance programmes. The unified funding 
approach that initially started under the term ‘diversified funding strategy’ has been developed for NGEU 
and  combines  a  wide  range  of  funding  instruments  (EU  bonds  and  EU  bills)  and  funding  techniques 
(syndications  and  auctions)  to  flexibly  cover  long-term  and  short-term  funding  needs.  The  scope  of  the 
diversified  funding  strategy  was  expanded  in  December  2022  to  enable  the  Commission  to  extend  the 
benefits of this more flexible and cost-efficient debt management strategy to MFA+ loans for Ukraine and 
other  potential  future  borrowing  and  lending  programmes,  thereby  creating  a  unified  funding  approach 
for  all  EU  borrowing  and  lending  programmes.  Under  this  unified  funding  approach,  the  Commission 
issues single-branded EU-Bonds, as opposed to running separately designated issuances per policy as in 
the past.  

Risk Governance for borrowing, debt management, and related lending operations 

This  risk  management  framework  is  a  critical  element  in  providing  adequate  protection  of  the  financial 
interests  of  the  EU  and  sound  financial  management  of  EU  operations.  Although  the  European 
Commission is not a financial institution, it strives to apply the state-of-the-art sound risk management 
practices  in  respect  of  the  EU  borrowing  and  debt  management  operations.  With  that  in  mind,  best 
practices in  risk  management have  been  adapted  to  fit  the  specific  set  up  of  the  European  Union  as  an 
issuer  and  the  requirements  of  the  various  programmes  financed  by  the  borrowing  activities.  The 
ultimate objective of the framework is to protect the financial and reputational interests of the Union and 
to ensure the probity, integrity, and transparency of NGEU operations.  

The  Chief  Risk  Officer  (CRO)  initially  developed  the  framework  for  NGEU  operations,  comprising  of  the 
High  Level  Risk  and  Compliance  Policy,  Market  and  Funding  Liquidity  Risk  Policy,  and  Operational  Risk 
Management  Policy.  The  CRO  defines  hard  and  soft  limits  as  well  as  Key  Risk  Indicators  to  assess  and 
monitor  the  risks  related  to  EU  borrowing  and  debt  management  operations  and  provides  regular  risk 
reports highlighting compliance with the risk limits, risk exposures and material risks as well as mitigation 
plans.  In  relation  to  EU  borrowing  and  debt  management  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. 

With the adoption of the Decision (EU, Euratom) 2022/2544, introducing the diversified funding strategy 
for all EU borrowing, debt management, and related lending operations, the scope of risk oversight of the 
CRO was further extended to cover:   

•  Borrowing  operations  under  both  the  diversified  funding  strategy  and  back-to-back  funding 

method in respect of financial assistance programmes; 

•  Credit risk assessment for related lending operations in the form of loans to Member States and 
non-EU  countries  (beneficiary  countries)  under  various  EU  programmes  for  financial  assistance 
encompassing  NGEU,  Macro  Financial  Assistance,  MFA+  for  Ukraine,  and  financial  assistance  to 
third countries; and 

•  Debt management operations. 

The  CRO,  supported  by  the  Risk  and  Compliance  Committee,  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  committee  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  (EU,  Euratom)  2023/2825.  The  CRO  exercises  its  role 
independently and enjoys autonomy in carrying out the assigned tasks and responsibilities. 

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 of 17 May 2016 and 2022/615 of 5 April 2022) and in the Financial Regulation. 

114 

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

Annual accounts of the European Union 2023 

•  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  resource’s  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, securities are kept with our custodians 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. 

115 

 
Annual accounts of the European Union 2023 

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 above referenced 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  to  ensure  a  high  degree  of  diversification  across  eligible  asset  classes, 
geographical  areas,  issuers  and  maturities  in  order  to  manage  fluctuations  in  portfolio  value. 
At 31 December  2023  the  CPF  portfolio  included  investments  in  money  market  instruments,  bonds  and 
corporate and equity ETFs. 

As the sole counterparty for all outstanding currency forwards as of 31 December 2023 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 

All fines provisionally paid on bank accounts before 2010 became definitive in April 2023. Therefore, all 
deposit accounts in Central Treasury related to fines were closed in 2023. 

Provisionally cashed fines: BUFI portfolio 

Fines  imposed  and  provisionally  cashed  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  updated  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 
institutions,  and  bonds,  bills  and  certificates  of  deposit  issued  by  either  sovereign  or  supranational 
institutions. 

116 

 
 
 
Financial guarantees received 

Annual accounts of the European Union 2023 

Significant amounts of guarantees issued by financial institutions are held by the Commission in relation 
to  the  fines  it  imposes  on  companies  breaching  EU  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 interests 
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  includes  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 
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. 

117 

 
Financial instruments programmes 

Annual accounts of the European Union 2023 

The  implementation  of  the  EU  budget  has  relied  for  many  years  on  the  use  of  financial  instrument 
programmes. See note 2.4.2.1 for examples of such programmes.  

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 

31.12.2023 
SEK 

PLN 

Other 

EUR 

Total 

EUR million 

 39 

 2 

– 

– 

 14 

 200 

 255 

1 568 
(1 142) 
 123 
 145 
 734 

 (591) 
 (1) 
 (593) 
 142 

 23 
– 
 99 
 11 
 135 

 (0) 
– 
 (0) 
 135 

– 
 21 
 28 
1 076 
1 126 

 (38) 
– 
 (38) 
1 088 

 20 
 74 
 1 
 654 
 749 

 (15) 
 (3) 
 (18) 
 731 

35 686 
 105 
2 055 
 82 
3 757 
 23 
35 608 
2 121 
2 346  77 306 

37 402 
1 091 
4 032 
39 616 
82 396 

 (137) 
 146 

(5 488) 
 (201) 
 9  (5 689) 
2 354  71 618 

(6 268) 
 (60) 
(6 328) 
76 068 

118 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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 

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 

*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 
 (13) 
 16 

USD 
 16 
 (20) 

2023 

GBP 
 (12) 
 15 

2022 

GBP 
 (14) 
 17 

EUR million 

SEK 
 (66) 
 81 

EUR million 

SEK 
 (44) 
 54 

PLN 
 (99) 
 121 

DKK 
 (92) 
 112 

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 of 17 May 2016 and 2022/615 of 5 April 2022). 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. 

119 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fines 

Annual accounts of the European Union 2023 

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  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. 

2023: Financial assets at FVSD 

2022: Financial assets at FVSD 

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

EUR million 

Economic result 

 (960) 
1 021 
 (741) 
 784 

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 borrowings under the unified 
funding approach, there is no interest rate risk since the borrowings are offset by equivalent loans at the 
same terms and conditions (back-to-back). 

The lending and borrowing under the unified funding approach (covering NGEU and MFA+) is different to 
the  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 
unified funding approach is to allocate the cost of funding and all other related costs to beneficiaries (for 
loans) and to the EU budget (for non-repayable support) in a transparent way. The methodology for the 
cost of funding allocation has not changed with the extension of diversified funding strategy to the unified 
funding approach. The only consequence of the application of the new funding approach is that the cost 
of funding methodology is now applied also to loans disbursed under programmes other than NGEU and, 
thus,  to  new  loan  beneficiaries  that  were  not  initially  part  of  the  NGEU  diversified  strategy.  The 
methodology under the unified funding approach 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-

120 

 
 
 
 
Annual accounts of the European Union 2023 

effective and equitable way based on daily interest calculations. That ensures that the loan beneficiaries 
bear all costs allocated to their loans and that all borrowing costs incurred by the Union are recovered.  

Under  the  unified  funding  approach,  the  cash  is  held  in  a  EU  prudential  and  funding  pool  in  order  to 
maintain  a  defined  safety  buffer  while  avoiding  any  excess  balances.  The  cash  is  kept  at  the  European 
Central Bank. Since 4 April 2022 the Euro money market short term interest rate minus 20 basis points 
applies  to  any  outstanding  cash  balance.  Previously,  the  outstanding  cash  balance  was  subject  of  ECB 
deposit  facility  rate.  Based  on  a  mutual  agreement,  only  outstanding  cash  balances  over  EUR  20  billion 
were  subject  to  negative  interest  at  the  ECB.  Based  on  the  approved  cost  allocation  methodology, 
interest  not  allocated  to  loans  or  non-repayable  support  is  the  subject  of  invoicing  to  loan  beneficiaries 
and the EU budget in the form of liquidity management costs that can be positive or negative depending 
on the evolution of interest rates applied on cash balances.  

Treasury 

Except  for  the  borrowing  related  to  the  unified  funding  approach,  the  Commission  does  not  borrow 
money  to  fund  its  operational  expenditure.  Beyond  the  interest  rate  exposure  on  NGEU  and  financial 
assistance programmes under the unified funding aproach, 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. 

Own  resources  accounts  are  protected  from  any  costs  as  they  are  free  of  any  charge  or  interest  in 
accordance  with  Article  9.1  of  the  Council  Regulation  (EU,  Euratom)  No  609/2014  (as  amended  by 
Council Regulation (EU, Euratom) 2016/804 of 17 May 2016 and 2022/615 of 5 April 2022). 

Therefore,  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. 

Cash management procedures are adapted according to the current market interest conditions, which in 
2023 were positive, facilitating the implementation of the central account model. A safety cash buffer is 
held  on  central  deposit  accounts  based  on  a  weekly  funding  from  Own  Resources  accounts  to  cover 
payment  needs  for  the  implementation  of  the  budget  while  avoiding  any  excess  balances.  Appropiate 
ceilings are respected according to the bank conditions and counterparty risk.  

Overnight balances held on commercial and central 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. 

Fines 

The  provisionally  cashed  fines  are  invested  in  a  portfolio  of  long-term  bonds  with  an  average  portfolio 
duration of 1.72 years. 

Common Provisioning Fund 

The funds in the CPF are invested in a portfolio with a total average duration of 3.32 years. 

ECSC i.L. 

The ECSC i.L. amounts are invested in a portfolio of long-term bonds with an average portfolio duration 
of 3.32 years. 

121 

 
 
 
Annual accounts of the European Union 2023 

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 

*excluding deferred charges 

EUR million 
31.12.2023 

EUR million 
31.12.2022 

246 877 
39 616 
4 032 
29 703 
1 091 

57 066 
 40 
378 426 

204 354 
46 544 
5 684 
24 647 
 984 

55 502 
 8 
337 723 

In  addition,  the  EU  is  indirectly  exposed  to  the  credit  risk  through  its  investments  in  MMFs,  corporate 
bond 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  

31.12.2023 

EUR million 

Stage 1   Stage 2 

Stage 3 

POCI 

Total  

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

36 302 
72 051 
113 652 
2 130 
224 134 
 (54) 
224 081 

– 
– 
– 
31 762 
31 762 
(9 024) 
22 738 

– 
– 
– 
 25 
 25 
 (23) 
 2 

36 302 
– 
72 051 
– 
113 652 
– 
 38 
33 955 
 38  255 960 
(9 083) 
 18 
 56  246 877 

EUR million 

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

31.12.2022 

Stage 1   Stage 2 

Stage 3 

POCI 

Total  

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 
– 
 114 
25 160 
 114  206 786 
(2 431) 
 126  204 354 

 13 

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 

122 

 
 
 
 
 
 
 
 
   
 
 
 
   
 
 
 
 
 
   
 
 
 
   
 
 
 
Annual accounts of the European Union 2023 

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.  All  loans  to  Member  States  are  in  investment  grade  and  in  Stage  1.  The  loans  in 
Stage  2  include  EUR  29.9  billion  of  MFA,  MFA+  and  Euratom  loans  to  Ukraine  (nominal  amount).  The 
POCI loans are the subrogated loans from the ELM programmes.  

Borrowing and lending activities for NGEU and financial assistance 

In case of default of the debtors, and in order to service any related debt due, the Commission may draw 
on the assets held in the CPF for MFA (except MFA+) and Euratom loans to third countries.  

Loans provided to Ukraine under the exceptional MFA programme (EUR 6 billion disbursed in 2022, see 
note  2.4.1.1)  are  firstly  covered  by  their  compartment  in  CPF,  and  then  also  by  additional  Member 
States  guarantees,  that  are  considred  as  credit  enhancement  for  those  loans  and  thus  reduce  an 
impairment  allowance  recognised  in  relation  to  those  loans  to  EUR  340  million  (out  of  the  entire 
impairement  allowance  of  EUR  8.9  billion  covering  the  total  MFA  and  MFA+  loans  to  Ukraine)  as  at 
31 December 2023.  

Exposure  to  credit  risk  is  managed  by  obtaining  state  guarantees  in  the  case  of  Euratom,  which  total 
EUR 314 million at 31 December 2023 (2022: EUR 327 million). 

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. 

For any credit losses on the loans to Member States and MFA+, the Commission may call upon Member 
States, while respecting the own resources ceilings (see note 6.6).   

Loans: Movement in impairment loss allowance  

Loss allowance at 01.01.2023 
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 31.12.2023 

Stage 1   Stage 2 

Stage 3 

POCI 

Total  

EUR million 

 55 
– 
 (9) 
 (0) 
 8 
 (0) 
 (0) 
 (0) 
 (0) 
 54 

2 361 
– 
 9 
– 
6 765 
– 
– 
 (111) 
– 
9 024 

 27 
– 
 (0) 
 0 
– 
– 
 (5) 
 1 
– 
 23 

 (13) 
– 
– 
– 
– 
– 
 9 
 (14) 
– 
 (18) 

2 431 
– 
 0 
– 
6 773 
 (0) 
 3 
 (124) 
 (0) 
9 083 

The  additional  impairment  loss  allowance  on  Stage  2  loans  refers  mainly  to  the  new  MFA+  loans  to 
Ukraine (see note 2.4.1.1). 

In 2023, the EU granted EUR 100 million of interest rate subsidies to Ukraine for the interest accrued on 
some of the exceptional MFA loans (the amortised cost before the modification totalled EUR 3.4 billion). 
This  modification  of  the  contractual  terms  was  accounted  for  as  a  modification  loss  in  the  statement  of 
financial performance (see note 3.15). The interest rate subsidy did not have a significant impact on the 
credit risk assessment, thus the loans continued to be classified to stage 2 as at 31 December 2023.  

123 

 
 
   
 
 
 
Loans: Staging assessment 

Annual accounts of the European Union 2023 

As referred to in the significant accounting policies, the impairment allowance for the financial assets at 
amortised 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  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 thus whether a move to Stage 2 applies, the EU applies a combination of quantitative and qualitative 
assessments: 

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

Stage 2; 

• 

• 

• 

• 

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

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

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

Loans originated before the transition 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.  

124 

 
 
 
Annual accounts of the European Union 2023 

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  the  lifetime  ECL. 
Under the relevant agreements between the EU and the implementing partners, recovery proceedings are 
undertaken on behalf of the EU with the aim of recovering any sums due. 

Loans: ECL measurement 

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

• 
• 
• 

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

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

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

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

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

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

Cash and cash equivalents: credit quality  

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

Treasury 

EUR million 

31.12.2023 

31.12.2022 

35 687 
3 114 
 786 
 28 
39 616 
- 
39 616 

40 769 
3 675 
1 343 
 757 
46 544 
– 
46 544 

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 of 17 May 2016 and 2022/615 of 5 
April 2022) 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 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 commercial account. 
As a consequence the total amount kept overnight on these commercial accounts remains constantly at 
low  levels  (overall  less  than  EUR  100  million  on  average,  spread  over  around  35  accounts)  and  so  it  is 
ensured that the Commission's risk exposure is limited. These amounts should be viewed with regard to 

125 

 
 
 
 
 
 
Annual accounts of the European Union 2023 

the daily overall treasury balances which fluctuated in 2023 between EUR 6 billion and EUR 36.5 billion, 
and  with  an  overall  amount  of  payments  made  from  Commission  bank  accounts  in  2023  that  exceeded 
EUR 170 billion. 

In  addition,  specific  guidelines  are  applied  for  the  selection  of  commercial  banks  in  order  to  further 
minimise counterparty risk to which the Commission is exposed: 

•  All  commercial  banks  are  selected  by  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. 

Cash held under unified funding aproach 

Lending and borrowing instruments for financial assistance do not, in general, keep any outstanding cash 
balances due to their underlying back-to-back principle. However, with implementation of the diversified 
funding  strategy  for  the  NGEU  instrument  that  was  extended  to  the  unified  funding  approach  for  other 
financial  assistance  programmes  (MFA+  during  2023),  sufficient  cash  is  held  to  meet  all  upcoming 
disbursement  needs  and  maintaining  a  defined  safety  buffer,  while  avoiding  any  excess  balances.  The 
cash is placed on a bank account at the ECB, thus, the credit risk is very low. 

Receivables: credit quality  

Not due 

Past due  

   0-30 days  31-90 days 

Gross carrying amount 
Minus loss allowance 
Net carrying amount at 
31.12.2023 
Gross carrying amount 
Minus loss allowance 
Net carrying amount at 
31.12.2022 

1 819 
 (2) 

1 817 

1 613 
 (2) 

1 611 

 23 
 (2) 

 21 

 18 
 (2) 

 16 

Past due   Past due   Past due  
91 days - 
1 year 
 40 
 (12) 

 304 
 (140) 

> 1 year 

 10 
 (4) 

EUR million 
Total 

2 195 
 (159) 

 6 

 14 
 (5) 

 9 

 28 

 164 

2 036 

 21 
 (13) 

1 992 
 (150) 

3 658 
 (172) 

 8 

1 842 

3 486 

The amounts in this table do not include deferred charges and the 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 

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

Financial guarantees received 

The risk management policy applied for the acceptance of such guarantees ensures a high credit quality 
for  the  Commission.  The  policy  includes  defining  a  maximum  credit  exposure  towards  a  particular 
financial sector entity based on its credit rating and the level of an entity’s capital as accounted for in its 

126 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

IFRS  financial  statements.  The  compliance  of  the  outstanding  guarantees  with  the  applicable  policy 
requirements is reviewed regularly. 

ECSC i.L. 

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  2023  is  the  Banque  de  France,  hence  no  credit 
enhancements, such as collateral, netting agreements or guarantees are put in place as of this date. 

Financial guarantee contracts: credit quality 

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

Stage 1 

31.12.2023 
Stage 2 

Total 

Stage 1 

31.12.2022 
Stage 2 

 2 
 5 
 29 
30 310 

– 
 0 
– 
26 697 

 2 
 5 
 29 
57 007 

 0 
 3 
 23 
24 124 

 4 
– 
– 
31 339 

EUR million 

Total 

 4 
 3 
 23 
55 463 

 13 

 10 

 23 

 7 

 2 

 9 

30 360 

26 707 

57 066 

24 157 

31 345 

55 502 

Financial guarantee contracts: Movement in the loss allowance  

Loss allowance at 01.01.2023 
Transfer to Stage 2 
Transfer to Stage 1 
Additions 
Release of guarantees 
Remeasurement 
Loss allowance at 31.12.2023 
Financial guarantee liability carrying 
amount at 31.12.2023 

Stage 1  

Stage 2   

1 199 
 (1) 
 519 
 147 
 (97) 
 (338) 
1 430 

3 839 

3 130 
 1 
 (519) 
 5 
 (3) 
 (218) 
2 397 

2 429 

EUR million 

Total 

4 330 
– 
– 
 152 
 (99) 
 (557) 
3 826 

6 268 

*Transfers  from  and  to  stage  1  /  stage  2  are  measured  at  the  opening  balance  impairment  allowance,  whereas  the  changes  of  the 
amount arising from the change of the stage (i.e. measuremet at 12-months or lifetime ECL) are part of re-measurement. 

Financial guarantee contracts: staging policies 

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

Stage 1 - No significant increase in credit risk  

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

Stage 2 - Significant increase in credit risk 

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

127 

 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

• 

• 

• 

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

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

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

If  information  on  the  credit  rating  is  not  available  but  an  estimation  of  the  expected  annual  claims  has 
been  made  at  initial  recognition,  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  transition  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 2023, some EU guarantees, mainly in relation to portfolios of SMEs loans, were moved from Stage 2 to 
Stage 1 as the credit risk returned to the initially expected level. This led to a remeasurement effect and 
a  reduction  of  ECL,  as  the  impairment  allowance  is  measured  at  12-month  ECL  at  the  end  of  2023 
compared to life-time ECL at the end of 2022. Out of the outstanding ECL  for guarantees in Stage 2 of 
EUR 2.4 billion as at 31 December 2023, EUR 2.2 billion relates to the ELM guarantees (see note 4.1.1). 
This  includes  EUR 0.8 billion  life-time  ECL  for  the  EIB  exposure  in  Ukraine  (EUR  3.8  billion  outstanding 
EIB  loans  to  counterparts  in  Ukraine,  of  which  EUR  0.2  billion  not  yet  disbursed  as  at  year-end) 
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. 

128 

 
 
 
Annual accounts of the European Union 2023 

6.6.  LIQUIDITY RISK 

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

Undiscounted contractual cash-flows 

Borrowings 
Payables 
Other  
Total at 31.12.2023 
Borrowings 
Payables 
Other  
Total at 31.12.2022 

< 1 year 
(24 526) 
(50 516) 
 (195) 
(75 237) 
(23 204) 
(55 341) 
 (318) 
(78 862) 

1-5 years  > 5 years 
(367 296) 
(147 211) 
– 
– 
 (867) 
 (661) 
(368 164) 
(147 872) 
(280 075) 
(80 495) 
– 
– 
 (771) 
 (711) 
(280 846) 
(81 206) 

Total 
(539 033) 
(50 516) 
(1 723) 
(591 272) 
(383 774) 
(55 341) 
(1 800) 
(440 914) 

Maturity analysis of derivative financial liabilities by remaining contractual maturity 

Undiscounted contractual cash-flows 

Derivative pay leg 
Derivative receive leg 
Net cash flows at 31.12.2023 
Derivative pay leg 
Derivative receive leg 
Net cash flows at 31.12.2022 

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

(1 203) 
1 186 
 (17) 
 (504) 
 487 
 (17) 

 (6) 
– 
 (6) 
 (8) 
– 
 (8) 

Total 
(1 209)   
1 186   
 (23) 
 (512)   
 487   

 (25) 

EUR million 
Carrying 
amount 

(450 561) 
(50 516) 
(1 496) 
(502 572) 
(344 303) 
(55 341) 
(1 517) 
(401 161) 

EUR million 
Carrying 
amount 

 (21) 

 (20) 

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

FGCs at 31.12.2023 
FGCs at 31.12.2022 

Maximum amount of guarantee 

  < 1 year  1-5 years  > 5 years 
(7 043) 
(4 902) 

(65 661) 
(65 109) 

(2 995) 
(13 332) 

Total 
(75 699) 
(83 343) 

EUR million 
Carrying 
amount 
(6 268) 
(6 456) 

Borrowing activities for NGEU and financial assistance 

The  first  recourse  for  the  repayment  of  borrowings  for  financial  assistance  and  NGEU  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.  

The  Commission  established  a  short-term  temporary  measure  with  the  EU  Central  Treasury  called 
budgetary  cover  that  assures  liquidity  to  cover  payment  of  obligations  arising  from  borrowings  under 
back-to-back  financial  assistance  programmes.  The  procedure  foresees  the  activation  of  financial 
resources  either  in  the  form  of  cash  advances  or  a  reservation  of  cash  with  the  EU  budget  to  assure 
liquidity in case a loan beneficiary is in delay with its obligations.  

Subsequently, for MFA (except 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 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  the  loans  and  borrowings  disbursed  under  the  unified  funding  approach  the  Commission  may  also 
apply  active  cash  management  and  short-term  borrowing  in  order  to  service  EU  debts.  Management  of 

129 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

the  liquidity  risk  under  the  unified  funding  approach  requires  implementation  of  liquidity  management 
procedures and dedicated tools that allow monitoring and active liquidity management on a daily basis. 
The overarching objective is to ensure that amounts held on the bank account are sufficient to meet all 
upcoming  disbursement  needs  and  to  maintain  a  defined  safety  buffer  while  avoiding  any  excess 
balances. 

For all financial assistance borrowings as well as for the unified funding approach borrowings (NGEU and 
MFA+),  the  Commission may  call  resources  from  the  Member  States  up to  the  own  resources  ceiling in 
order  to  service  the  EU  debts.  The  own  resources  decision  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  exclusively  for  NGEU.  The  2023  budget  included  a  total  of  own 
resources  to  finance  the  expenditure  of  0.98%  of  GNI.  This  means  that  at  31  December  2023  there 
existed an available margin of 1.02% to cover its liabilities. 

Finally,  loans  provided  to  Member  States  under  the  SURE  instrument  are  underpinned  by  a  system  of 
voluntary guarantees from Member States, amounting to 25% of the maximum ceiling available for the 
related  financial  assistance.  Before  calling  on  guarantees  provided  by  the  Member  States,  the 
Commission  is  expected  to  examine  the  scope  for  drawing  on  the  margin  available  under  the  own 
resources  ceiling  for  payments  appropriation  to  the  extent  that  it  is  deemed  sustainable  by  the 
Commission, having regard, inter alia, to the total contingent liabilities of the Union and the sustainability 
of the general budget of the Union. Such examination shall not affect the irrevocable, unconditional and 
on-demand nature of the guarantees provided. 

Treasury 

EU  budget  principles  ensure  that  overall  cash  resources  for  a  given  year  are  always  sufficient  for  the 
execution of all payments. In fact, the total Member States contributions together with the miscellaneous 
revenue  equal  the  amount  of  payment  appropriations  for  the  budgetary  year.  Member  States’ 
contributions, however, are received in twelve monthly instalments throughout the year and based on the 
adopted  budget,  while  payments  are  subject  to  operational  needs.  Moreover,  in  accordance  with  the 
Council Regulation (EU, Euratom) No 609/2014 (on the methods and procedure for making available own 
resources, amended by Council Regulation (EU, Euratom) 2016/804 of 17 May 2016 and 2022/615 of 5 
April 2022), 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 of 17 May 2016 and 2022/615 of 5 April 2022. 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 65%. 

Budgetary guarantees 

The  maturity  analysis  for  financial  guarantees  is  presented  using  a  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  than  the  guarantee  ceiling,  therefore  the  amount  of  the  liquidity  risk  needs  to  be  seen  in  the 
conjunction with the carrying amount of the guarantee liabilities. 

130 

 
Annual accounts of the European Union 2023 

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 reports19 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 19%. 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  2023,  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), ETFs 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 31.12.2023 
Equity investments 

MMFs, ETFs and investments in pooled portfolios  
Guarantees on equity* 
Total at 31.12.2022 
*The risk of guarantees on equity is based on the notional amount that is covered by the guarantee. 

10% 
 289 
 481 
 506 
1 276 
 253 
 290 
 469 
1 012 

EUR million 
(10)% 
 (289) 
 (481) 
 (506) 
(1 276) 
 (253) 
 (290) 
 (469) 
(1 012) 

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.  

19 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 2023 

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. 

132 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

KEY MANAGEMENT FINANCIAL ENTITLEMENTS 

Entitlement (per employee) 

EUR 
Category 1  Category 2  Category 3  Category 4  Category 5 

Basic salary (per month) 

32 100.99 

29 076.98 - 
30 240.07 

23 261.59 - 
26 169.28 

25 122.52 - 
26 750.83 

14 790.96 - 
23 261.59 

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% + 215.91 

2% + 215.9  2% + 215.91  2% + 215.91  2% + 215.91 

 471.80 

 115.26 

 320.12 

 640.24 

 471.80 

 115.26 

 320.12 

 640.24 

 471.80 

 115.26 

 320.12 

 640.24 

 471.80 

 115.26 

 320.12 

 640.24 

N/A 

N/A 

 471.80 

 115.26 

 320.12 

 640.24 

N/A 

N/A 

Presiding judges allowance 

N/A 

N/A 

 734.48 

Representation allowance 

1 739.59 

1 118.02 

745.5 

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 

Family travel expenses 

Moving expenses 

Leaving office: 

Resettlement expenses 

Family travel expenses 

Moving expenses 

Transition (% salary)** 

Sickness insurance 

64 201.98 

Reimbursed 

58 153.96 - 
60 480.14 
Reimbursed 

46 523.18 - 
52 338.56 
Reimbursed 

50 245.04 - 
53 501.66 
Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

Reimbursed 

32 100.99 

Reimbursed 

29 076.98 - 
30 240.07 
Reimbursed 

23 261.59 - 
26 169.28 
Reimbursed 

25 122.52 - 
26 750.83 
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% 

11.1% 

 112 

133 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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. 

134 

 
 
Annual accounts of the European Union 2023 

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) 

135 

 
 
 
 
 
 
 
 
 
 
 
 
 
MINOR ENTITIES 

Annual accounts of the European Union 2023 

The entities listed below have not been consolidated using the equity method in the 2023 EU consolidated 
financial statements on the basis of immateriality: 

MINOR ENTITES (10) 
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 JU) 
Global Health EDCTP3 Joint Undertaking (GHED JU) 
Smart Networks and Services Joint Undertaking (SNS JU) 

The annual accounts of the above entities are publicly available on their respective websites. 

136 

 
 
Annual accounts of the European Union 2023 

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.

137 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

CONTENTS 

EU BUDGET RESULT ........................................................................... 139 

STATEMENTS OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS .......... 140 

NOTES TO THE BUDGETARY IMPLEMENTATION REPORTS ......................... 142 

3.1. 

3.2. 

3.3. 

3.4. 

3.5. 

3.6. 

3.7. 

3.8. 

THE EU BUDGET FRAMEWORK ........................................................ 142 

MULTIANNUAL FINANCIAL FRAMEWORK 2021-2027 ........................... 142 

MFF DETAILED HEADINGS (PROGRAMMES)....................................... 144 

NextGenerationEU ........................................................................ 144 

ANNUAL BUDGET .......................................................................... 145 

REVENUE .................................................................................... 147 

CALCULATION OF THE BUDGET RESULT ........................................... 148 

RECONCILIATION OF ECONOMIC RESULT WITH BUDGET RESULT ......... 150 

IMPLEMENTATION OF THE 2023 EU BUDGET .......................................... 152 

IMPLEMENTATION OF EU BUDGET REVENUE ........................................... 153 

5.1. 

SUMMARY OF THE IMPLEMENTATION OF EU BUDGET REVENUE............ 153 

IMPLEMENTATION OF EU BUDGET EXPENDITURE .................................... 154 

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 ......................................................................... 154 

MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS ............... 155 

MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ..................... 156 

MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) ................ 157 

MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN ................... 158 

MFF: OUTSTANDING COMMITMENTS BY APPROPRIATIONS TYPE .......... 159 

DETAILED MFF: BREAKDOWN AND CHANGES IN COMMITMENT 
AND PAYMENT  APPROPRIATIONS ................................................... 160 

DETAILED MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 166 

DETAILED MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ....... 172 

6.10.  DETAILED MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) .. 179 

6.11.  DETAILED MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN .... 185 

6.12.  DETAILED MFF: OUTSTANDING COMMITMENTS BY APPROPRIATIONS 

TYPE........................................................................................... 190 

IMPLEMENTATION OF THE BUDGET BY INSTITUTION ............................... 196 

7.1. 

7.2. 

7.3. 

IMPLEMENTATION OF BUDGET REVENUE .......................................... 196 

IMPLEMENTATION OF COMMITMENT APPROPRIATIONS ....................... 197 

IMPLEMENTATION OF PAYMENT APPROPRIATIONS ............................. 198 

IMPLEMENTATION OF THE AGENCIES' BUDGETS ..................................... 199 

8.1. 

8.2. 

BUDGET REVENUE ........................................................................ 199 

COMMITMENT AND PAYMENT APPROPRIATIONS BY AGENCY ................ 200 

138 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

EU BUDGET RESULT 

Note 

a 

b 

c 

d 

e 

f 

g 

Revenue for the financial year 

Payments against current year appropriations 

Payment appropriations carried over to year N+1 

Cancellation of unused appropriations carried over from year N-1 

Evolution of assigned revenue (B)-(A) 

     Unused appropriations at the end of current year (A) 

     Unused appropriations at the end of previous year (B) 

Exchange rate differences for the year 

Budget result 

EUR million 

2023 

2022 

248 361 

245 265 

(236 739) 

(239 157) 

(3 014) 

(2 452) 

 4 

 80 

(8 055) 

(1 121) 

23 207 

15 152 

 78 

635 

15 152 

14 032 

 (97) 

2 519 

The  budget  result  of  the  EU  is  returned  to  the  Member  States  in  the  following  year  through  deduction 
against  their  amounts  due  for  that  year.  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  8  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. 

g.  The total budget result amount consists of two elements: 

- EFTA result EUR 3 395 124.46 
- EU result EUR 631 696 140.84 

139 

 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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 

Initial 
budget 
adopted 

Final 
adopted 
budget 

Entitlements 
established 

Revenue 

156 573 

151 041 

149 339 

149 536 

EUR million 

0 

21 590 

20 720 

107 886 

– 

6 377 

0 

1 895 

 121 

0 

0 

23 730 

22 459 

97 650 

– 

7 202 

2 519 

1 895 

 710 

0 

 2 

21 884 

22 482 

97 702 

 43 

7 225 

2 558 

2 794 

17 162 

67 589 

 2 

22 081 

22 482 

97 702 

 43 

7 225 

2 551 

2 757 

2 480 

67 589 

10 060 

9 038 

28 215 

23 447 

  Total 

168 649 

165 203 

267 656 

248 361 

     of which Next Generation EU (NGEU) 

– 

– 

68 386 

68 386 

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 

21 548 

21 446 

29 794 

27 951 

2  Cohesion, Resilience and Values 

70 587 

70 652 

201 195 

196 751 

  2a. Economic, social and territorial cohesion 

62 926 

62 926 

67 852 

66 573 

  2b. Resilience and values 

7 660 

7 725 

133 343 

130 178 

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) 

57 259 

57 218 

40 692 

40 692 

3 727 

2 117 

3 727 

2 117 

17 212 

17 791 

11 311 

11 346 

4 687 

4 689 

– 

– 

2 855 

2 180 

65 063 

41 805 

3 846 

2 165 

20 484 

12 740 

5 235 

5 446 

3 397 

63 567 

41 134 

3 801 

2 149 

19 598 

12 303 

5 056 

3 685 

2 483 

  Total 

186 617 

186 477 

344 131 

332 290 

     of which Next Generation EU (NGEU) 

– 

– 

115 890 

115 629 

140 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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 

20 901 

58 059 

50 875 

7 184 

20 129 

56 469 

49 237 

7 232 

3  Natural Resources and Environment 

57 456 

56 656 

29 688 

25 323 

128 996 

120 617 

70 809 

58 186 

61 442 

65 696 

54 922 

59 476 

     of which: Market related expenditure and direct 
payments 

40 698 

40 698 

41 811 

41 120 

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) 

3 038 

1 208 

13 995 

11 311 

2 662 

1 386 

14 574 

11 346 

4 687 

4 689 

– 

– 

2 680 

1 981 

2 903 

1 422 

15 870 

13 787 

5 889 

8 434 

3 198 

2 665 

1 386 

15 232 

12 260 

5 039 

 226 

2 001 

  Total 

168 649 

165 203 

265 740 

239 186 

     of which Next Generation EU (NGEU) 

– 

– 

69 221 

66 129 

Budget expenditure: outstanding commitments by 
multiannual financial (MFF) heading 

MFF Heading 

EUR million 

Outstanding 
commitments 
carried-over 
from 2022 

1 

Liquidation 
of 
outstanding 
commitm. 
carried from 
2022 
2 

New 
outstanding 
commitments 
from 2023 

Total 
outstanding 
commit- 
ments 

3 

4=1+2+3 

1 

2 

3 

4 

5 

6 

7 

O 

S 

Single Market, Innovation and Digital 

50 130 

(18 858) 

20 654 

51 926 

Cohesion, Resilience and Values 

301 081 

(112 502) 

188 178 

376 757 

2a. Economic, social and territorial cohesion 

154 302 

(63 801) 

64 363 

154 864 

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 

146 779 

(48 701) 

123 815 

221 893 

53 459 

(17 558) 

21 575 

57 477 

 357 

 (128) 

4 008 

3 061 

(1 559) 

(1 044) 

36 962 

(10 731) 

1 048 

(1 048) 

 129 

2 671 

1 785 

13 755 

1 004 

 358 

5 121 

3 803 

39 987 

1 004 

 654 

 (654) 

 608 

 608 

3 071 

 (208) 

3 584 

6 447 

 0 

 (0) 

 482 

 482 

452 821  (163 506) 

253 689 

543 003 

     of which Next Generation EU (NGEU) 

189 132 

(64 516) 

113 995 

238 611 

     of which excluding Next Generation EU (NGEU) 

263 689 

(98 990) 

139 694 

304 392 

141 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

  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 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

Total 

EUR millionin current prices 

20 919  

21 878  

21 727  

21 598  

21 272  

21 847  

22 077  

151 318  

6 364  

67 806  

70 137  

73 289  

74 993  

66 536  

70 283  

429 408  

1 769  

61 345  

62 939  

64 683  

66 479  

56 725  

58 639  

372 579  

4 595  

6 461  

7 198  

8 606  

8 514  

9 811  

11 644  

56 829  

56 841  

56 965  

57 295  

57 449  

57 558  

57 332  

57 557  

400 997  

40 368  

40 639  

40 693  

40 603  

40 665  

40 691  

40 651  

284 310  

1 791  

3 360  

3 814  

4 020  

4 387  

4 315  

4 465  

26 152  

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  185 963  187 881  179 725  185 377  1 215 871 

163 496  166 534  168 575  170 543  173 654  177 126  180 668  1 200 596 

1.18% 

1.12% 

1.03% 

0.96% 

0.94% 

0.92% 

0.91% 

1.01% 

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 
TOTAL 
COMMITMENT 
APPROPRIATIONS 

TOTAL PAYMENT 
APPROPRIATIONS 
as a percentage of 
GNI 

Council  Regulation  (EU,  Euratom)  2020/2093  laying  down  the  2021-2027  MFF  was  adopted  on  17 
December 202020. The above table shows the MFF ceilings at current prices21, 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 

20 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. 

21 Technical  adjustment  of  the  financial  framework  for  2024  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(2023) 320 
final, 6.6.2023. 

142 

 
 
          
          
          
          
          
          
          
        
            
          
          
          
          
          
          
        
            
          
          
          
          
          
          
        
            
            
            
            
            
            
          
          
          
          
          
          
          
          
          
        
          
          
          
          
          
          
          
        
            
            
            
            
            
            
            
          
            
            
            
            
            
            
            
          
          
          
          
          
          
          
          
        
          
          
          
          
          
          
          
          
            
            
            
            
            
            
            
          
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

the  amounts  are  split  per  Heading;  for  payment  appropriations  the  ceilings  only  apply  at  total  level.  
2023 was the third financial year covered by the MFF 2021-2027.  

The  overall  ceiling  for  commitment  appropriations  for  2023  was  EUR 182 667 million,  whilst  the 
corresponding ceiling for payment appropriations was EUR 168 575 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  216  billion  (EUR  1  077  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.  This 
initial  amount  has  been  adjusted  to  EUR  712  billion,  as  the  total  available  loan  support  was  not  fully 
requested by the Member States. 

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) under this heading: Horizon 
Europe and InvestEU Fund. 

Heading 2 – Sustainable growth: natural resources 

This heading is divided in two sub-headings: Economic, social and territorial cohesion (2a), and Resilience 
and values (2b). 

Spending under this heading aims at strengthening the resilience and cohesion between the EU Member 
States. The funding helps reduce disparities in and between EU  regions, and within and across Member 
States,  and  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) 
under this heading: REACT-EU, Union Civil Protection Mechanism (rescEU). For a more detailed overview 
of the RRF activities, consult sections on the NGEU 2 and 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)  under  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. 

143 

 
Heading 5 – Security and Defence 

Annual accounts of the European Union 2023 

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. 

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  shown  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 Regulation22. 

For a comprehensive overview of the NGEU activities, consult sections 2 and 3 of the Financial Highlights 
of the Year. 

22 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. 

144 

 
 
 
 
 
Annual accounts of the European Union 2023 

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 

145 

 
 
Annual accounts of the European Union 2023 

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. 

146 

 
Annual accounts of the European Union 2023 

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)  Traditional own resources (TOR): accounted for around 15% of own resources revenue in 2023. 

(2)  Value added tax (VAT) based resource: accounted for around 15% of own resources revenue in 

2023. 

(3)  Resource based on plastic packaging waste that is not recycled: accounted for around 5% of own 

resources revenue in 2023. 

(4)  Gross  national  income  (GNI)  based  resource:  accounted  for  around  65%  of  own  resources 

revenue in 2023. 

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. 

147 

 
 
 
3.6.4.  Non-recycled plastic packaging waste 

Annual accounts of the European Union 2023 

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. 

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. 

148 

 
Annual accounts of the European Union 2023 

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. 

149 

 
Annual accounts of the European Union 2023 

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 
Entitlements collected not to be treated as revenue in the economic result 
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. 

2023 
(71 437) 

EUR million 
2022 
(91 949) 

(5 714) 
10 046 
73 209 
 (923) 
76 618 

14 090 
(1 638) 
(12 575) 
(3 208) 
(5 409) 
3 752 
 240 
(4 748) 
 202 

(5 978) 
8 235 
65 852 
2 072 
70 181 

45 648 
(2 053) 
(21 659) 
(2 660) 
3 331 
3 650 
(2 139) 
24 118 
 168 

BUDGET RESULT OF THE YEAR 

 635 

2 519 

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  i.L.  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. Some entitlements collected are not to be treated as 
revenue  in  the  economic  result  and  must  also  be  added  for  reconciliation  purposes.  They  are  mostly 
related to Next Generation EU financing.   

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 

150 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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.  

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 i.L. 

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. 

151 

 
 
Annual accounts of the European Union 2023 

 IMPLEMENTATION OF THE 2023 EU BUDGET  

Please  see  section  6,  ‘Summary  of  budget  implementation’  in  the  Financial  Highlights  of  the  Year  for 
explanatory  notes  on  the  2023  budget  implementation  for  revenue  and  expenditure,  outstanding 
commitments and budget result. 

152 

 
 
 IMPLEMENTATION OF EU BUDGET REVENUE  

Annual accounts of the European Union 2023 

5.1.  SUMMARY OF THE IMPLEMENTATION OF EU BUDGET REVENUE  

Income appropriations 

Entitlements established 

Revenue 

Title 

Initial 
adopted 
budget 

Final 
adopted 
budget 

Current 
year 

Carried 
over 

Total 

On entitle- 
ments of 
current year 

On entitle- 
ments 
carried over 

Total 

EUR million 

Receipts 
as % of 
budget 

Out- 
standing 

1  Own resources 

  11 - Sugar levies 

  12 - Customs duties 

  13 - VAT 

  14 - GNI 

16 - Reduction of GNI-based contribution 
granted to certain Member States 

1 

2 

3 

4 

5=3+4 

6 

7 

8=6+7 

9=8/2 

10=5-8 

156 573 

151 041 

147 777 

1 562 

149 339 

148 062 

1 474 

149 536 

 99 % 

 (197) 

0 

0 

 2 

 (0) 

 2 

 2 

– 

 2 

- 

 (0) 

21 590 

23 730 

20 322 

1 562 

21 884 

20 607 

1 474 

22 081 

 93 % 

 (197) 

20 720 

22 459 

22 482 

107 886 

97 650 

97 702 

– 

– 

 43 

– 

– 

– 

– 

 7 

 49 

22 482 

22 482 

97 702 

97 702 

 43 

7 225 

2 558 

2 794 

 43 

7 225 

2 551 

2 728 

– 

– 

– 

– 

– 

22 482 

 100 % 

97 702 

 100 % 

 43 

- 

7 225 

 100 % 

2 551 

 101 % 

 30 

2 757 

 146 % 

– 

– 

– 

– 

 7 

 36 

  17 - Plastic packaging waste 

6 377 

7 202 

7 225 

2  Surpluses, balances and adjustments 

0 

2 519 

2 551 

3  Administrative revenue 

1 895 

1 895 

2 745 

4  Financial revenue, default interest and fines 

 121 

 710 

1 126 

16 035 

17 162 

 (604) 

3 084 

2 480 

 349 % 

14 681 

5 

6 

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

0 

0 

67 589 

– 

67 589 

67 589 

– 

67 589 

- 

– 

10 060 

9 038 

22 400 

5 815 

28 215 

17 987 

5 460 

23 447 

 259 % 

4 769 

  Total 

168 649 

165 203  244 189 

23 467  267 656 

238 313 

10 048  248 361 

150 % 

19 295 

153 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 IMPLEMENTATION OF EU BUDGET EXPENDITURE  

Annual accounts of the European Union 2023 

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 

21 548 

 (102) 

21 446 

 149 

8 199 

29 794 

20 901 

 (773) 

20 129 

 107 

9 452 

29 688 

2  Cohesion, Resilience and Values 

70 587 

 65 

70 652 

 159 

130 384 

201 195 

58 059 

(1 590) 

56 469 

 75 

72 452 

128 996 

2a. Economic, social and territorial 
cohesion 

62 926 

– 

62 926 

 159 

4 766 

67 852 

50 875 

(1 638) 

49 237 

 2 

21 570 

70 809 

  2b. Resilience and values 

7 660 

 65 

7 725 

 0 

125 618 

133 343 

7 184 

 48 

7 232 

 73 

50 882 

58 186 

3  Natural Resources and Environment 

57 259 

 (41) 

57 218 

 488 

7 357 

65 063 

57 456 

 (800) 

56 656 

 493 

4 293 

61 442 

of which: Market-related 
expenditure and direct payments 

4  Migration and Border Management 

5  Security and Defence 

40 692 

3 727 

2 117 

– 

– 

– 

40 692 

 485 

 627 

41 805 

40 698 

– 

40 698 

 486 

 627 

41 811 

3 727 

 16 

 103 

3 846 

3 038 

 (376) 

2 662 

2 117 

 3 

 45 

2 165 

1 208 

 178 

1 386 

 3 

 6 

 238 

2 903 

 30 

1 422 

6  Neighbourhood and the World 

17 212 

 579 

17 791  1 159 

1 534 

20 484 

13 995 

 579 

14 574 

 104 

1 192 

15 870 

7  European Public Administration 

11 311 

 34 

11 346 

4 687 

– 

 3 

– 

4 689 

– 

 1 

 1 

– 

1 393 

12 740 

11 311 

 34 

11 346 

1 032 

1 409 

13 787 

 545 

5 235 

4 687 

5 446 

5 446 

– 

 3 

– 

4 689 

 641 

 559 

5 889 

– 

– 

8 434 

8 434 

2 855 

 (675) 

2 180 

 746 

 471 

3 397 

2 680 

 (698) 

1 981 

 746 

 471 

3 198 

  Total 

186 617 

 (140)  186 477  2 721  154 933 

344 131  168 649 

(3 446)  165 203 

2 566 

97 971 

265 740 

154 

     of which: Administrative 
expenditure of the institutions 

O  Outside MFF 

S 

Solidarity mechanisms within and 
outside the Union (Special 
instruments) 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.2.  MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Union 2023 

MFF Heading 

Total 
appropr.  
available 

Commitments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over to 
2024 

from final 
adopted 
budget 

from 
assigned 
revenue 

Total 

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 

29 794 

21 442 

 149 

6 361 

27 951 

 94 % 

– 

1 838 

1 838 

 4 

201 195 

69 606 

 159 

126 986 

196 751 

 98 % 

67 852 

61 882 

 159 

4 532 

66 573 

 98 % 

 12 

 12 

3 323 

3 335 

1 034 

 159 

 171 

1 033 

  2b. Resilience and values 

133 343 

7 724 

 0 

122 454 

130 178 

 98 % 

 0 

3 164 

3 164 

65 063 

56 881 

 476 

6 210 

63 567 

 98 % 

 316 

 958 

1 274 

41 805 

40 374 

 473 

 286 

41 134 

 98 % 

 316 

 341 

 657 

3 

4 

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

6 

7 

Neighbourhood and the 
World 
European Public 
Administration 
     of which: Administrative 
expenditure of the 
institutions 

5  Security and Defence 

2 165 

2 113 

 3 

3 846 

3 727 

 16 

 58 

 33 

3 801 

 99 % 

2 149 

 99 % 

– 

– 

 45 

 12 

 45 

 12 

20 484 

17 719  1 155 

 724 

19 598 

 96 % 

 72 

 810 

 882 

12 740 

11 300 

5 235 

4 649 

 1 

 1 

– 

1 003 

12 303 

 97 % 

 406 

5 056 

 97 % 

3 685 

3 685 

 68 % 

 1 

 1 

– 

 390 

 391 

 45 

 138 

 139 

 39 

1 761 

1 761 

– 

O  Outside MFF 

5 446 

– 

S 

Solidarity mechanisms 
within and outside the 
Union (Special instruments) 

3 397 

1 576 

 746 

 161 

2 483 

 73 % 

 407 

 307 

 714 

 197 

EUR million 

Appropriations lapsing 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

13=10+ 
11+12 

 5 

1 109 

1 108 

 1 

 222 

 14 

 0 

 4 

 4 

 45 

 39 

 0 

 200 

– 

– 

– 

– 

 1 

 75 

 75 

 0 

 12 

 188 

 12 

– 

– 

 4 

 0 

 0 

– 

– 

– 

 0 

 0 

 0 

 0 

 0 

 0 

 3 

 1 

 22 

 3 

 0 

 4 

 0 

  Total 

344 131  184 363  2 706  145 221  332 290  97 % 

 808 

9 444 

10 252 

1 306 

 15 

 268 

1 589 

155 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.3.  MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS 

Annual accounts of the European Union 2023 

Payments made 

Appropriations carried over 
to 2024 

Appropriations lapsing 

EUR million 

MFF Heading 

Total 
appropr. 
available 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

from final 
adopted 
budget 

from 
assigned 
revenue 

Total 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

5=2+ 
3+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

1 

Single Market, Innovation and 
Digital 

29 688 

20 000 

 98 

5 225 

25 323 

 85 % 

 110 

4 221 

4 331 

2  Cohesion, Resilience and Values 

128 996 

55 644 

 72 

64 901 

120 617 

 94 % 

 811 

7 545 

8 356 

2a. Economic, social and 
territorial cohesion 

70 809 

49 226 

 1 

16 469 

65 696 

 93 % 

 2 

5 101 

5 103 

  2b. Resilience and values 

58 186 

6 419 

 71 

48 431 

54 922 

 94 % 

 809 

2 444 

3 253 

61 442 

56 306 

 481 

2 689 

59 476 

 97 % 

 324 

1 604 

1 928 

41 811 

40 361 

 474 

 286 

41 120 

 98 % 

 316 

 341 

 657 

3 

4 

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

5  Security and Defence 

1 422 

1 363 

2 903 

2 594 

 2 

 5 

 68 

 18 

2 665 

 92 % 

1 386 

 97 % 

 3 

 8 

 170 

 173 

 12 

 20 

6  Neighbourhood and the World 

15 870 

14 417 

 80 

 734 

15 232 

 96 % 

 143 

 457 

 600 

7  European Public Administration 

13 787 

10 414 

 962 

 884 

12 260 

 89 % 

 887 

 522 

1 409 

     of which: Administrative 
expenditure of the institutions 

5 889 

4 083 

 593 

 363 

5 039 

 86 % 

 567 

 194 

 761 

O  Outside MFF 

8 434 

– 

– 

 226 

 226 

 3 % 

– 

8 208 

8 208 

S 

Solidarity mechanisms within 
and outside the Union (Special 
instruments) 

3 198 

1 254 

 746 

 1 

2 001 

 63 % 

 728 

 468 

1 196 

Total 

13=10+ 
11+12 

 34 

 23 

 11 

 12 

 38 

 34 

 65 

 16 

 38 

 118 

 89 

– 

 1 

 19 

 13 

 9 

 4 

 26 

 22 

 65 

 16 

 14 

 45 

 39 

– 

 0 

 9 

 3 

 1 

 2 

 12 

 12 

 1 

 0 

 23 

 71 

 48 

– 

 0 

 5 

 7 

 0 

 7 

 0 

– 

 0 

 0 

 0 

 3 

 2 

– 

 1 

  Total 

265 740  161 992  2 447  74 747  239 186  90 % 

3 014  23 207  26 221 

 197 

 119 

 17 

 333 

156 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.4.  MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) 

Annual accounts of the European Union 2023 

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 

50 130 

301 081 

154 302 

146 779 

53 459 

 357 

4 008 

3 061 

36 962 

1 048 

 654 

3 071 

 0 

2 

3 

4=1+2+3 

5 

6 

7 

8=5+6+7 

9=4+8 

 (821) 

(18 037) 

31 272 

27 951 

(7 286) 

 (11) 

20 654 

51 926 

 (456) 

(112 046) 

188 579 

196 751 

(8 572) 

 (314) 

(63 487) 

90 501 

66 573 

(2 209) 

 (142) 

(48 558) 

98 078 

130 178 

(6 363) 

 (74) 

(17 484) 

35 901 

63 567 

(41 992) 

 (13) 

 (116) 

 229 

41 134 

(41 005) 

 (23) 

 (22) 

(1 535) 

(1 022) 

2 449 

2 017 

3 801 

(1 129) 

2 149 

 (364) 

(1 342) 

(9 389) 

26 232 

19 598 

(5 843) 

 (85) 

 (963) 

 (61) 

 (593) 

 0 

– 

12 303 

(11 296) 

5 056 

(4 446) 

 (83) 

 (125) 

2 863 

3 685 

 (101) 

 (0) 

 (0) 

– 

2 483 

(2 001) 

 (1) 

 (1) 

 (0) 

 (0) 

– 

 (0) 

 (0) 

 (0) 

 (3) 

 (2) 

– 

– 

188 178 

376 757 

64 363 

154 864 

123 815 

221 893 

21 575 

57 477 

 129 

2 671 

1 785 

 358 

5 121 

3 803 

13 755 

39 987 

1 004 

 608 

3 584 

 482 

1 004 

 608 

6 447 

 482 

  Total 

452 821 

(2 905)  (160 601) 

289 315 

332 290 

(78 585) 

 (16) 

253 689 

543 003 

157 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.5.  MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN  

Annual accounts of the European Union 2023 

<2017 

2017 

2018 

2019 

2020 

2021 

2022 

2023 

Total 

EUR million 

1 

2 

3 

4 

5 

6 

7 

O 

S 

Single Market, Innovation and Digital 

 634 

 865 

1 182 

3 748 

6 529 

6 859 

11 278 

20 831 

51 926 

Cohesion, Resilience and Values 

1 835 

2 249 

3 070 

4 923 

8 017 

28 409 

140 066 

188 188 

376 757 

Natural Resources and Environment 

2 406 

 926 

1 156 

1 195 

2 414 

5 757 

22 047 

21 575 

57 477 

Migration and Border Management 

Security and Defence 

Neighbourhood and the World 

European Public Administration 

Outside MFF 

Solidarity mechanisms within and outside the Union 
(Special instruments) 

 29 

 20 

 94 

 41 

 108 

 102 

 342 

 158 

 948 

 246 

 180 

 716 

 749 

 735 

2 671 

1 785 

5 121 

3 803 

1 238 

 837 

1 834 

2 658 

2 880 

5 945 

10 837 

13 757 

39 987 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

 0 

1 004 

 105 

2 758 

3 584 

1 004 

6 447 

– 

– 

 482 

 482 

Total 

6 162 

5 013 

7 452 

13 024 

21 034 

47 971  188 470  253 877 

543 003 

As  a  result  from  re-allocation  of  commitments  in  the  framework  of  internal  re-organisations  a  shift  of  outstanding  amount  (188  EUR  million)  between  years  has  occurred.  The 
overall amount of outstanding commitments remains unchanged. 

158 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.6.  MFF: OUTSTANDING COMMITMENTS BY APPROPRIATIONS TYPE 

Annual accounts of the European Union 2023 

From budget appropriations 

From assigned revenue appropriations 

Commitm. 
carried 
forward 
from 2022 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

Amount 
remaining 
to be 
settled 
5=1+2+3-
4 

Commitm. 
carried 
forward 
from 2022 

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 2023 

11=5+10 

1  Single Market, Innovation and Digital 

42 542 

 (677) 

21 590 

20 137 

43 318 

7 588 

 (155) 

6 361 

5 186 

8 608 

51 926 

2  Cohesion, Resilience and Values 

98 936 

 (427) 

69 765 

38 883 

129 392 

202 144 

 (30) 

126 986 

81 734 

247 365 

376 757 

2a. Economic, social and territorial 
cohesion 

93 943 

 (305) 

62 041 

32 335 

123 345 

60 358 

 (10) 

4 532 

33 361 

31 520 

154 864 

  2b. Resilience and values 

4 993 

 (122) 

7 724 

6 548 

6 048 

141 786 

 (21) 

122 454 

48 374 

215 846 

221 893 

3  Natural Resources and Environment 

41 281 

 (69) 

57 357 

56 964 

41 606 

12 178 

 (5) 

6 210 

2 512 

15 871 

57 477 

   of which: Market related expenditure 
and direct payments 

 357 

 (13) 

40 848 

40 834 

 358 

4  Migration and Border Management 

3 811 

 (20) 

3 743 

2 585 

4 949 

5  Security and Defence 

3 025 

 (22) 

2 116 

1 372 

3 748 

6  Neighbourhood and the World 

36 275 

(1 332) 

18 874 

14 473 

39 345 

7  European Public Administration 

 929 

 (31) 

11 300 

11 313 

 286 

 286 

 0 

 197 

 36 

 687 

 119 

 (0) 

 (4) 

 (0) 

 58 

 33 

 (10) 

 724 

 (57) 

1 003 

 80 

 14 

 758 

 947 

 886 

 567 

     of which: Administrative 
expenditure of the institutions 

O  Outside MFF 

S 

Solidarity mechanisms within and 
outside the Union (Special instruments) 

 603 

 (10) 

4 650 

4 676 

 51 

 (53) 

 406 

 363 

– 

– 

– 

3 071 

 (83) 

3 685 

 226 

6 447 

6 447 

 0 

 (0) 

2 322 

2 001 

 321 

– 

– 

 161 

– 

 161 

 482 

  Total 

226 800 

(2 577)  187 069  147 727 

263 564 

226 021 

 (343)  145 221 

91 459 

279 439 

543 003 

159 

 0 

 172 

 55 

 642 

 118 

 42 

 358 

5 121 

3 803 

39 987 

1 004 

 608 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.7.  DETAILED MFF: BREAKDOWN AND CHANGES IN COMMITMENT AND PAYMENT 

APPROPRIATIONS 

Annual accounts of the European Union 2023 

Commitment appropriations 

Payment appropriations 

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 

Additional 
appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Carry-
overs 

Assigned 
revenue 

7 

8 

9=7+8 

10 

11 

12 434 

 149 

3 594 

11 909 

 (292) 

11 616 

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 

12 353 

 276 

 81 

 10 

 840 

 (290) 

 286 

 550 

– 

 27 

 341 

– 

 (1) 

– 

 428 

2 281 

 (433) 

– 

 426 

 289 

 34 

1 341 

 4 

– 

– 

 1 

 206 

 4 

 4 

 25 

 31 

 634 

– 

– 

 (12) 

 (3) 

 (3) 

– 

– 

 25 

 38 

 122 

 124 

 9 

 6 

2 045 

– 

 28 

 341 

1 853 

 859 

 289 

1 307 

 203 

 4 

 4 

 24 

 603 

 25 

 38 

 133 

 127 

 12 

 6 

Total 
approp. 
available 

6=3+ 
4+5 
16 177 

 346 

 558 

 721 

 27 

 274 

 (50) 

 671 

 (264) 

– 

 18 

3 376 

3 716 

 390 

 38 

2 319 

1 943 

 553 

2 496 

 435 

 292 

 724 

 230 

 (195) 

 (83) 

1 381 

1 285 

 (438) 

 60 

 8 

 721 

– 

 9 

 3 

 40 

 11 

 85 

– 

 4 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

160 

 217 

 203 

 89 

 4 

 29 

 4 

 18 

 24 

 52 

 685 

 615 

 1 

 3 

 9 

 14 

 0 

– 

 26 

 41 

 131 

 138 

 9 

 6 

 26 

 36 

 120 

 127 

 12 

 10 

 224 

 407 

– 

 10 

 390 

 529 

 147 

 846 

 218 

 2 

 13 

 31 

 713 

 25 

 36 

 115 

 124 

 9 

 9 

– 

 (7) 

 (0) 

 16 

 (2) 

 (4) 

 7 

 98 

 (1) 

– 

 (5) 

 (3) 

 (3) 

 (1) 

EUR million 

Total 
approp. 
available 

12=9+ 
10+11 

 66 

 17 

 1 

– 

– 

 0 

 0 

 2 

 0 

 10 

– 

– 

– 

– 

 6 

– 

 0 

 0 

– 

– 

– 

 5 

6 071 

17 753 

 114 

 8 

 483 

– 

2 200 

 35 

 2 

 3 

 39 

 11 

 85 

– 

 1 

 64 

 1 

 3 

 9 

 14 

 0 

– 

 355 

 416 

 483 

 10 

2 590 

2 531 

 532 

 150 

 895 

 229 

 87 

 13 

 32 

 783 

 27 

 39 

 124 

 138 

 9 

 9 

 308 

2 404 

European Space Programme 

2 045 

 168 

2 213 

2 091 

 1 

2 092 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Additional 
appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Carry-
overs 

Assigned 
revenue 

Total 
approp. 
available 

Budget appropriations 

Additional 
appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Carry-
overs 

Assigned 
revenue 

EUR million 

Total 
approp. 
available 

1 

2 

3=1+2 

4 

5 

 75 

0 

 106 

– 

0 

 75 

0 

 50 

 156 

– 

0 

– 

6=3+ 
4+5 

 77 

0 

 156 

 2 

0 

– 

7 

8 

9=7+8 

10 

11 

 75 

0 

 99 

– 

0 

 (98) 

 75 

0 

 0 

– 

0 

– 

12=9+ 
10+11 

 77 

0 

 0 

 2 

0 

– 

21 548 

 (102) 

21 446 

 149 

8 199 

29 794 

20 901 

 (773) 

20 129 

 107 

9 452 

29 688 

Programme 

Decentralised agencies 

Pilot projects & preparatory actions 

Union Secure Connectivity 
Total Heading 1: Single Market, 
Innovation and Digital 

2  Regional Development (ERDF)  

38 393 

 7 

38 400 

 151 

2 636 

41 187 

27 315 

(1 706) 

25 608 

Cohesion Fund 
Cohesion Fund contrib. to CEF-
Transport 
Pilot projects and prep. actions 

6 208 

 425 

6 633 

1 548 

 4 

– 

– 

1 548 

 4 

European Social Fund Plus (ESF+)  

16 774 

 (432) 

16 342 

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 

 34 

 121 

 1 

1 316 

 188 

 739 

– 

 261 

– 

 12 

 94 

3 669 

 144 

 333 

 42 

– 

– 

 (0) 

 0 

 65 

– 

– 

– 

– 

– 

 (1) 

 4 

– 

– 

 (2) 

 34 

 121 

 1 

1 316 

 253 

 739 

– 

 261 

– 

 12 

 92 

3 672 

 144 

 333 

 40 

 732 

7 365 

8 719 

 831 

9 550 

 2 

– 

1 550 

1 814 

 255 

2 069 

 4 

 5 

 (1) 

 4 

1 396 

17 747 

13 023 

(1 017) 

12 006 

 7 

 41 

–  123 552  123 673 

 37 

 115 

 1 

 312 

 627 

– 

 11 

 95 

1 319 

1 316 

1 228 

1 482 

 0 

 3 

 31 

 26 

 64 

– 

 0 

 1 

 770 

 26 

– 

 12 

 13 

 105 

 628 

4 300 

3 292 

 26 

 20 

 4 

 171 

 353 

 44 

 124 

 312 

 40 

 3 

 (0) 

 (0) 

 0 

 45 

 (121) 

– 

– 

 1 

 (15) 

 87 

 4 

 69 

 (3) 

 6 

 (5) 

 325 

 253 

 40 

 115 

 1 

1 316 

 357 

 506 

 1 

 253 

– 

 12 

 80 

3 379 

 128 

 381 

 37 

– 

– 

– 

 8 

– 

– 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

161 

 0 

 0 

– 

– 

 2 

 0 

 2 

– 

 29 

 16 

 4 

– 

– 

– 

– 

 1 

 13 

 4 

 2 

 1 

11 149 

36 757 

 945 

10 494 

 2 

– 

2 071 

 4 

9 475 

21 482 

 7 

 47 

48 928 

49 045 

 0 

 3 

 973 

 20 

 52 

 64 

– 

 0 

 13 

 742 

 41 

 22 

 1 

 1 

1 348 

1 346 

 530 

 53 

 317 

– 

 12 

 94 

4 134 

 173 

 406 

 39 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Additional 
appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Carry-
overs 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

Total 
approp. 
available 

6=3+ 
4+5 

Budget appropriations 

Additional 
appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Carry-
overs 

Assigned 
revenue 

7 

8 

9=7+8 

10 

11 

 215 

 271 

 8 

 32 

 182 

 (1) 

 4 

 (1) 

– 

 (2) 

 214 

 275 

 7 

 32 

 180 

– 

– 

– 

– 

– 

 2 

 6 

 2 

 1 

 5 

 217 

 281 

 9 

 32 

 157 

 266 

 6 

 47 

 (10) 

 2 

 (3) 

 (13) 

 146 

 267 

 3 

 34 

 185 

 167 

 8 

 175 

 1 

– 

– 

– 

– 

EUR million 

Total 
approp. 
available 

12=9+ 
10+11 

 150 

 274 

 5 

 35 

 181 

 2 

 6 

 2 

 1 

 6 

70 587 

 65 

70 652 

 159  130 384  201 195 

58 059 

(1 590) 

56 469 

 75 

72 452 

128 996 

40 692 

 485 

 627 

41 805 

40 698 

40 698 

 486 

 627 

41 811 

40 692 

0 

12 935 

– 

0 

– 

0 

12 935 

1 103 

 (0) 

1 103 

 162 

 30 

– 

 2 

 756 

1 466 

 50 

 60 

 5 

 (45) 

– 

 4 

– 

 3 

– 

– 

 (3) 

– 

 117 

 30 

 4 

 2 

 758 

1 466 

 50 

 57 

 5 

– 

0 

0 

0 

0 

0 

 453 

13 388 

15 087 

 (875) 

14 212 

 89 

1 195 

– 

 1 

– 

– 

 117 

 31 

 4 

 2 

 889 

 151 

 30 

– 

 4 

 11 

 769 

 523 

5 907 

7 373 

 261 

 311 

 7 

 0 

 64 

 5 

 3 

– 

 60 

 12 

 103 

 (35) 

– 

– 

 (1) 

 5 

 (1) 

 10 

 (3) 

 (3) 

 991 

 116 

 30 

– 

 3 

 528 

 2 

 10 

 57 

 9 

0 

– 

 3 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

 0 

 1 

– 

– 

– 

– 

 6 

– 

– 

– 

– 

0 

0 

3 123 

17 335 

 89 

1 081 

– 

 1 

– 

– 

 9 

 166 

 271 

 7 

 0 

 116 

 31 

– 

 3 

 543 

 168 

 281 

 64 

 9 

Programme 

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 

Other actions 

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 

57 259 

 (41) 

57 218 

 488 

7 357 

65 063 

57 456 

 (800) 

56 656 

 493 

4 293 

61 442 

4  Asylum, Migration and Integration  

1 455 

 30 

1 485 

Decentralised agencies 

 172 

 (15) 

 157 

Pilot projects and prep. actions 

– 

Border Mngmt. (IBMF) - Border mngmt 

 957 

– 

– 

– 

 957 

 7 

 21 

 0 

 1 

1 500 

1 330 

 (259) 

1 071 

 178 

 172 

 (10) 

 162 

 0 

– 

 965 

 397 

– 

 12 

– 

 409 

 2 

– 

– 

 1 

 10 

 21 

 0 

 133 

1 082 

 183 

 0 

 543 

 8 

– 

– 

 8 

162 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Programme 

and visa 

Border Mngmt. (IBMF) - Customs 
equipment 
Decentralised agencies 
Total Heading 4: Migration and Border 
Management 
Internal Security Fund (ISF) 

5 

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 
Defence instrument on common 
procurement 
Defence Industrial Reinforcement 
instrument 
European Defence industry Programme 

Pilot projects and prep. actions 

Union Secure Connectivity 

6 

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) 

Annual accounts of the European Union 2023 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Additional 
appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Carry-
overs 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

Total 
approp. 
available 

6=3+ 
4+5 

Budget appropriations 

Additional 
appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Carry-
overs 

Assigned 
revenue 

7 

8 

9=7+8 

10 

11 

EUR million 

Total 
approp. 
available 

12=9+ 
10+11 

 141 

– 

1 003 

 (15) 

3 727 

 310 

 69 

 57 

 230 

– 

 22 

 319 

 626 

 295 

– 

– 

– 

 (1) 

 1 

– 

– 

 (0) 

– 

– 

 157 

 (157) 

 141 

 988 

3 727 

 310 

 69 

 57 

 231 

– 

 22 

 319 

 626 

 295 

– 

– 

0 

– 

 30 

2 117 

 157 

 157 

0 

– 

– 

– 

0 

– 

 30 

2 117 

– 

– 

 16 

 3 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

 141 

 72 

 (72) 

 0 

 75 

1 062 

1 068 

 (48) 

1 020 

 103 

3 846 

3 038 

 (376) 

2 662 

 2 

– 

 0 

 316 

 195 

 69 

 57 

 60 

 53 

 16 

 247 

 230 

– 

 22 

 328 

 644 

 295 

 1 

 19 

 164 

 250 

 132 

 (2) 

 42 

 (4) 

 1 

 (1) 

 0 

 5 

 107 

 131 

– 

 72 

 (72) 

 157 

0 

– 

 30 

– 

0 

 1 

 30 

 1 

0 

 0 

 (30) 

– 

 0 

 9 

 17 

– 

– 

– 

0 

– 

– 

 193 

 102 

 49 

 231 

– 

 19 

 169 

 357 

 263 

– 

 1 

0 

 1 

– 

 3 

 45 

2 165 

1 208 

 178 

1 386 

12 251 

 (39) 

12 212 

1 147 

1 343 

14 703 

8 944 

 167 

9 110 

 40 

– 

 40 

1 777 

 631 

2 408 

 372 

 0 

 372 

 5 

 0 

– 

 1 

 37 

 23 

 46 

 32 

 8 

 40 

2 445 

1 834 

 637 

2 471 

 395 

 381 

 6 

 387 

163 

 0 

– 

 3 

 1 

– 

 2 

– 

– 

– 

 1 

 1 

 0 

– 

– 

0 

– 

– 

 6 

 76 

 1 

 8 

 0 

– 

 75 

 0 

1 094 

 238 

2 903 

 4 

– 

 1 

 16 

– 

 0 

 4 

 5 

– 

– 

– 

0 

 0 

– 

 199 

 102 

 52 

 247 

– 

 19 

 175 

 362 

 263 

– 

 1 

0 

 1 

– 

 30 

1 422 

 861 

10 047 

 1 

 36 

 23 

 42 

2 515 

 410 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Programme 

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 

Remuneration statutory staff 

Remuneration external staff 

Members - Salaries and allowances 

Members - Temporary allowances 

Recruitment costs 

Termination of service 

Training costs 

Social and Mobility 

Annual accounts of the European Union 2023 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Additional 
appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Carry-
overs 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

Total 
approp. 
available 

6=3+ 
4+5 

Budget appropriations 

Additional 
appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Carry-
overs 

Assigned 
revenue 

7 

8 

9=7+8 

10 

11 

 70 

 78 

– 

 93 

2 531 

0 

– 

 (13) 

– 

– 

– 

0 

 70 

 65 

– 

 93 

2 531 

0 

 1 

– 

– 

– 

 5 

0 

 35 

 106 

 1 

 0 

 0 

 66 

 0 

 93 

 59 

 62 

– 

 93 

 (5) 

 (9) 

 0 

 (6) 

 54 

 53 

 0 

 87 

 92 

2 629 

2 591 

 (219) 

2 372 

0 

0 

0 

0 

0 

 1 

– 

– 

– 

 17 

0 

EUR million 

Total 
approp. 
available 

12=9+ 
10+11 

 69 

 54 

 0 

 87 

 14 

 1 

 0 

 0 

 256 

2 645 

0 

0 

17 212 

 579 

17 791 

1 159 

1 534 

20 484 

13 995 

 579 

14 574 

 104 

1 192 

15 870 

2 296 

 14 

 1 

 9 

 16 

 7 

 0 

 0 

 224 

2 779 

 268 

 14 

– 

 31 

 9 

 16 

 22 

 52 

 (0) 

 (0) 

 (1) 

 (1) 

 (1) 

 (0) 

 0 

 9 

 (46) 

 (16) 

 2 

 0 

 (1) 

 (0) 

 1 

 0 

2 348 

 14 

 1 

 8 

 14 

 6 

 0 

 0 

 233 

2 733 

 252 

 16 

 0 

 30 

 9 

 18 

 22 

 259 

2 607 

2 296 

– 

– 

– 

– 

– 

– 

– 

 14 

 1 

 8 

 14 

 6 

 0 

 0 

 14 

 1 

 9 

 16 

 7 

 0 

 0 

 27 

 260 

 224 

 115 

2 847 

2 779 

 83 

 335 

 268 

 0 

– 

 1 

– 

 7 

 26 

 16 

 0 

 31 

 9 

 24 

 48 

 14 

– 

 31 

 9 

 16 

 22 

 52 

 (0) 

 (0) 

 (1) 

 (1) 

 (1) 

 (0) 

 0 

 9 

 (46) 

 (16) 

 2 

 0 

 (1) 

 (0) 

 1 

 0 

2 348 

 14 

 1 

 8 

 14 

 6 

 0 

 0 

 233 

2 733 

 252 

 16 

 0 

 30 

 9 

 18 

 22 

– 

– 

– 

– 

– 

– 

– 

– 

 1 

 0 

 43 

 0 

– 

 4 

– 

 11 

 14 

 259 

2 607 

– 

– 

– 

– 

– 

– 

– 

 27 

 115 

 83 

 0 

– 

 1 

– 

 7 

 28 

 14 

 1 

 8 

 14 

 6 

 0 

 0 

 261 

2 848 

 378 

 17 

 0 

 34 

 9 

 35 

 64 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

164 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Commitment appropriations 

Payment appropriations 

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 

Additional 
appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Carry-
overs 

Assigned 
revenue 

7 

8 

9=7+8 

10 

11 

Total 
approp. 
available 

6=3+ 
4+5 

 434 

 363 

 157 

 74 

 59 

 17 

 3 

 16 

 7 

 6 

 31 

 78 

 39 

– 

 156 

 40 

 34 

 11 

 4 

 3 

– 

 5 

 0 

 0 

 12 

 45 

 22 

– 

 274 

 311 

 124 

 61 

 43 

 22 

 3 

 10 

 5 

 4 

 16 

 27 

 18 

– 

 4 

 12 

 (1) 

 2 

 13 

 (8) 

 0 

 1 

 1 

 2 

 3 

 6 

 (1) 

– 

 3 

 278 

 323 

 123 

 63 

 56 

 15 

 3 

 11 

 7 

 6 

 19 

 33 

 17 

– 

 155 

 156 

 2 

 69 

 33 

 11 

 7 

 0 

 7 

 2 

 3 

 15 

 5 

 8 

– 

 40 

 34 

 11 

 4 

 3 

– 

 5 

 0 

 0 

 12 

 45 

 22 

– 

EUR million 

Total 
approp. 
available 

12=9+ 
10+11 

 590 

 365 

 226 

 107 

 71 

 24 

 3 

 23 

 8 

 9 

 46 

 83 

 47 

– 

 545 

5 235 

4 687 

4 689 

 641 

 559 

5 889 

1 393 

12 740 

11 311 

 34 

11 346 

1 032 

1 409 

13 787 

5 331 

5 331 

 115 

 115 

5 446 

5 446 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

8 318 

 116 

8 434 

 1 

 12 

8 318 

 116 

8 434 

1 351 

 19 

 458 

1 829 

 0 

 46 

– 

 12 

 217 

 30 

 (23) 

 7 

1 325 

 46 

 458 

1 829 

1 325 

– 

1 325 

2 855 

 (675) 

2 180 

 746 

 471 

3 397 

2 680 

 (698) 

1 981 

 746 

 471 

3 198 

186 617 

 (140)  186 477 

2 721  154 933  344 131  168 649 

(3 446)  165 203 

2 566 

97 971 

265 740 

165 

 274 

 311 

 124 

 61 

 43 

 22 

 3 

 10 

 5 

 4 

 16 

 27 

 18 

– 

4 687 

 4 

 12 

 (1) 

 2 

 13 

 (8) 

 0 

 1 

 1 

 2 

 3 

 6 

 (1) 

– 

 3 

 278 

 323 

 123 

 63 

 56 

 15 

 3 

 11 

 7 

 6 

 19 

 33 

 17 

– 

4 689 

11 311 

 34 

11 346 

– 

– 

– 

– 

– 

– 

 205 

1 325 

– 

– 

– 

– 

– 

 650 

 205 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 1 

 1 

– 

– 

– 

Programme 

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 
Innovation Fund (IF) 

O 

Other actions 

Total Heading O: Outside MFF 

European Globalisation Adjustment 
(EGF) 
Brexit Adjustment Reserve 
Total Heading S: Solidarity 
mechanisms within and outside the 
Union (Special instruments) 
Total 

S  Solidarity and Emergency Aid (SEAR) 

1 325 

 (675) 

 700 

 1 

1 351 

1 325 

 (675) 

 650 

 700 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.8.  DETAILED MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Union 2023 

Commitments made 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried 
over 
to 2024 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

1 

2 

3 

4 

16 177 

12 434 

 149 

2 781 

5=2+3 
+4 
15 363 

 95 % 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

EUR million 

Appropriations lapsing 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

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 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 813 

 51 

 813 

 51 

 2 

 2 

 569 

 569 

– 

 219 

 24 

 1 

 1 

 1 

 2 

– 

 219 

 24 

 1 

 1 

 1 

 2 

 85 

 85 

– 

 1 

– 

 1 

 20 

 20 

 0 

 0 

 5 

 7 

 0 

– 

 37 

 0 

 0 

 0 

 5 

 7 

 0 

– 

 37 

 0 

 0 

 0 

 0 

– 

 0 

– 

 0 

 0 

 0 

 1 

– 

– 

– 

– 

 1 

 0 

 2 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

Total 

13=10+ 
11+12 

 0 

 0 

 0 

– 

 0 

– 

 0 

 0 

 0 

 1 

 0 

 0 

– 

– 

– 

– 

– 

 0 

– 

 0 

 (0) 

 (0) 

– 

– 

– 

– 

 (0) 

 (0) 

 0 

 0 

– 

– 

– 

– 

– 

 0 

 0 

 1 

 0 

 2 

 0 

– 

– 

– 

 0 

 0 

 346 

 286 

 558 

 550 

 721 

 27 

– 

 27 

3 716 

 341 

2 319 

2 281 

 435 

 292 

 426 

 289 

1 381 

1 340 

 217 

 206 

 89 

 4 

 29 

 4 

 4 

 25 

 685 

 633 

 26 

 41 

 131 

 138 

 9 

 6 

 25 

 36 

 121 

 124 

 9 

 6 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 9 

 6 

 295 

 85 % 

 556 

 100 % 

 152 

 152 

 21 % 

– 

 27 

 100 % 

3 156 

3 497 

 94 % 

 15 

2 295 

 99 % 

 8 

 2 

 434 

 100 % 

 291 

 99 % 

 39 

1 379 

 100 % 

 9 

– 

– 

 3 

 216 

 99 % 

 4 

 4 

 4 % 

 100 % 

 28 

 98 % 

 32 

 665 

 97 % 

 0 

 3 

 4 

 7 

 0 

– 

 25 

 39 

 98 % 

 96 % 

 126 

 96 % 

 131 

 95 % 

 9 

 6 

 100 % 

 100 % 

 131 

2 177 

 98 % 

 2 

 77 

 100 % 

166 

  European Space Programme 

2 213 

2 045 

  Decentralised agencies 

 77 

 75 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Programme 

Commitments made 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried 
over 
to 2024 

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 

  Pilot projects & preparatory actions 

0 

0 

  Union Secure Connectivity 

 156 

 156 

0 

– 

0 

– 

0 

- 

 156 

 100 % 

Total Heading 1: Single Market, 
Innovation and Digital 

29 794 

21 442 

 149 

6 361 

27 951 

94 % 

0 

– 

– 

0 

– 

0 

– 

1 838 

1 838 

2  Regional Development (ERDF)  

41 187 

37 642 

 151 

2 496 

40 288 

 98 % 

 12 

  Cohesion Fund 

Cohesion Fund contrib. to CEF-
Transport 

7 365 

6 400 

1 550 

1 548 

  Pilot projects and prep. actions 

 4 

– 

  European Social Fund Plus (ESF+)  

17 747 

16 292 

Support to Turkish-Cypriot 
Community 

 41 

 34 

– 

– 

– 

 8 

– 

 688 

7 088 

 96 % 

– 

– 

1 548 

 100 % 

– 

– 

1 348 

17 648 

 99 % 

 0 

 34 

 82 % 

  European Recovery and Resilience 

123 673 

 121 

–  120 773  120 894 

 98 % 

  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 

 1 

1 319 

1 316 

1 482 

 770 

 253 

 739 

 26 

– 

 325 

 261 

– 

 12 

– 

 12 

 92 

  Employment and Social Innovation 

 105 

  Erasmus+ 

4 300 

3 672 

  European Solidarity Corps (ESC) 

  Creative Europe 

Justice 

  Rights and Values 

 171 

 353 

 44 

 217 

 144 

 333 

 40 

 214 

– 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 2 

 1 

 100 % 

1 318 

 100 % 

1 214 

1 467 

 99 % 

 0 

 30 

 769 

 100 % 

– 

– 

– 

 35 

 296 

 91 % 

– 

 0 

 8 

– 

- 

 12 

 99 % 

 100 

 95 % 

 360 

4 033 

 94 % 

 7 

 14 

 3 

 1 

 151 

 347 

 88 % 

 98 % 

 43 

 99 % 

 215 

 99 % 

167 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

Total 

13=10+ 
11+12 

0 

– 

 5 

 802 

 244 

 0 

 4 

 58 

– 

 0 

 0 

– 

 (0) 

 0 

– 

– 

– 

 0 

 0 

 0 

– 

 0 

 0 

 0 

0 

– 

 4 

 746 

 233 

– 

 4 

 50 

– 

 0 

 0 

– 

 (0) 

 0 

– 

– 

– 

 0 

 0 

 0 

– 

 0 

 0 

 0 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

 1 

 56 

 11 

 0 

– 

 8 

– 

– 

– 

– 

 (0) 

– 

– 

– 

– 

– 

 0 

– 

– 

 0 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

 84 

 32 

 2 

– 

 40 

 7 

 97 

 32 

 2 

– 

 40 

 7 

2 779 

2 779 

– 

 0 

 15 

 1 

 26 

 29 

– 

 0 

 5 

– 

 0 

 15 

 1 

 26 

 29 

– 

 0 

 5 

 267 

 20 

 267 

 20 

 6 

 1 

 1 

 6 

 1 

 1 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Commitments made 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried 
over 
to 2024 

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 

 281 

 275 

 9 

 32 

 7 

 31 

 185 

 180 

– 

– 

– 

– 

 4 

 2 

 0 

 2 

 279 

 99 % 

 9 

 99 % 

 31 

 97 % 

 182 

 98 % 

– 

– 

– 

– 

 2 

 0 

 0 

 3 

 2 

 0 

 0 

 3 

– 

 0 

 0 

 0 

201 195 

69 606 

 159  126 986  196 751 

98 % 

 12 

3 323 

3 335 

1 034 

41 805 

40 374 

 473 

 286 

41 134 

 98 % 

 316 

 341 

 657 

0 

– 

 3 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

0 

- 

 19 

12 954 

 97 % 

 65 

1 171 

 98 % 

– 

 1 

– 

– 

 8 

 117 

 100 % 

 30 

 98 % 

 4 

 2 

 100 % 

 100 % 

 766 

 100 % 

5 816 

7 263 

 98 % 

 9 

 7 

– 

 59 

 19 % 

 64 

 99 % 

 5 

 100 % 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

0 

 247 

 247 

 23 

 23 

– 

 1 

– 

– 

 3 

– 

 1 

– 

– 

 3 

 3 

0 

 0 

 0 

 0 

– 

 0 

– 

 0 

 92 

 92 

 19 

 252 

 252 

 0 

– 

 0 

– 

– 

– 

– 

Total 

13=10+ 
11+12 

 0 

 0 

 1 

 0 

 0 

– 

 0 

– 

 75 

1 109 

– 

0 

 14 

0 

 187 

 188 

 1 

– 

– 

– 

– 

 0 

– 

– 

 0 

 0 

 1 

 0 

– 

 0 

– 

 0 

 19 

– 

 0 

 0 

– 

– 

– 

– 

– 

 12 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

Programme 

  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 

0 

0 

13 388 

12 934 

  Maritime and Fisheries 

1 195 

1 103 

  Fisheries (SFPA and RFMO) 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 

 117 

 31 

 4 

 2 

 117 

 30 

 4 

 2 

  Environment and Climate (LIFE) 

 769 

 758 

Just Transition Fund 
Loan facility under Just Transition 
Mechanism 

  Decentralised agencies 

  Pilot projects and prep. actions 

Total Heading 3: Natural Resources 
and Environment 

7 373 

1 447 

 311 

 64 

 5 

 50 

 57 

 5 

65 063 

56 881 

 476 

6 210 

63 567 

98 % 

 316 

 958 

1 274 

 22 

 12 

 188 

 222 

4  Asylum, Migration and Integration  

1 500 

1 485 

  Decentralised agencies 

  Pilot projects and prep. actions 
Border Mngmt. (IBMF) - Border 
mngmt and visa 

 178 

 157 

 0 

– 

 965 

 957 

  Border Mngmt. (IBMF) - Customs 

 141 

 141 

 8 

– 

– 

 8 

– 

 2 

 8 

– 

 0 

– 

1 494 

 100 % 

 165 

 93 % 

– 

– 

 965 

 100 % 

 141 

 100 % 

– 

– 

– 

– 

– 

 6 

 13 

– 

 0 

– 

 6 

 13 

– 

 0 

– 

 0 

– 

– 

 0 

– 

– 

– 

– 

– 

– 

 0 

 0 

 0 

 0 

– 

 0 

 0 

 0 

 0 

– 

168 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Commitments made 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried 
over 
to 2024 

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 

Programme 

equipment 

  Decentralised agencies 

Total Heading 4: Migration and 
Border Management 

1 062 

 988 

3 846 

3 727 

5  Internal Security Fund (ISF) 

 316 

 310 

– 

 16 

 3 

  Nuclear decommissioning 

Nuclear Safety and 
decommissioning 

 69 

 57 

 69 

 53 

  Decentralised agencies 

 247 

 231 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 

  European Defence (Research) 

  European Defence (Non Research) 

  Military Mobility 

Defence instrument on common 
procurement 
Defence Industrial Reinforcement 
instrument 
European Defence industry 
Programme 

  Pilot projects and prep. actions 

– 

 22 

 328 

 644 

 295 

– 

 22 

 319 

 626 

 295 

– 

– 

 157 

 157 

0 

– 

0 

– 

  Union Secure Connectivity 

 30 

 30 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

 48 

1 036 

 98 % 

 58 

3 801 

99 % 

 1 

– 

 0 

 6 

– 

 0 

 9 

 315 

 100 % 

 69 

 100 % 

 53 

 94 % 

 237 

 96 % 

– 

- 

 22 

 99 % 

 328 

 100 % 

 17 

 644 

 100 % 

– 

– 

– 

0 

– 

– 

 295 

 100 % 

– 

- 

 157 

 100 % 

0 

– 

- 

- 

 30 

 100 % 

2 165 

2 113 

 3 

 33 

2 149 

99 % 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

 26 

 45 

 1 

– 

 0 

 26 

 45 

 1 

– 

 0 

 11 

 11 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

 12 

 12 

14 703 

12 146 

1 144 

 658 

13 948 

 95 % 

 66 

 686 

 751 

6 

Total Heading 5: Security and 
Defence 
Neighbourhood, Developm. and Intl. 
Cooperation 
Instrument for Nuclear Safety 
(EINS) 

 46 

 40 

  Humanitarian Aid (HUMA) 

2 445 

2 408 

Common Foreign and Security Policy 
(CFSP) 

 395 

 372 

  Overseas Countries and Territories 

 106 

 70 

 5 

 0 

– 

 1 

 1 

 46 

 98 % 

 26 

2 434 

 100 % 

 13 

 385 

 97 % 

– 

 71 

 67 % 

 0 

– 

– 

 0 

 1 

 11 

 10 

 35 

 1 

 11 

 10 

 35 

169 

Total 

13=10+ 
11+12 

 0 

 0 

 0 

– 

 3 

 0 

– 

 0 

– 

– 

– 

– 

– 

0 

– 

– 

 4 

 4 

 (0) 

 (0) 

 0 

 0 

– 

 0 

 0 

– 

 3 

– 

– 

 0 

– 

– 

– 

– 

– 

0 

– 

– 

 4 

 0 

 (0) 

– 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

 0 

 0 

 0 

– 

 0 

 0 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

 0 

 4 

 (0) 

– 

– 

– 

– 

– 

 (0) 

 0 

– 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Programme 

Commitments made 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried 
over 
to 2024 

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 

(OCT) 

  Other actions 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 

 66 

 0 

 93 

 65 

– 

 93 

  Pre-Accession Assistance (IPA III) 

2 629 

2 525 

  Pilot projects and prep. actions 

0 

0 

– 

– 

– 

 5 

0 

 1 

– 

 0 

 66 

 99 % 

– 

– 

 93 

 100 % 

 26 

2 556 

 97 % 

0 

0 

- 

– 

– 

– 

 6 

0 

 0 

 0 

 0 

 67 

0 

 0 

 0 

 0 

 73 

0 

20 484 

17 719 

1 155 

 724 

19 598 

96 % 

 72 

 810 

 882 

Total Heading 6: Neighbourhood 
and the World 
7  Staff Pensions 

2 607 

2 347 

(Pensions former Members) EP 

 14 

 14 

(Pensions former Members) ECC 
(Pensions former Members) 
Commission 
(Pensions former Members) CJEU 

(Pensions former Members) ECA 
(Pensions former Members) 
Ombudsman 
(Pensions former Members) EDPS 

 1 

 8 

 1 

 8 

 14 

 14 

 6 

 0 

 0 

 6 

 0 

 0 

  European schools 

 260 

 233 

  Remuneration statutory staff 

2 847 

2 732 

  Remuneration external staff 

 335 

 252 

  Members - Salaries and allowances 

  Members - Temporary allowances 

  Recruitment costs 

  Termination of service 

  Training costs 

  Social and Mobility 

 16 

 0 

 31 

 9 

 24 

 48 

 16 

 0 

 28 

 8 

 17 

 22 

Information and comm. technology 

 434 

 278 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 259 

2 606 

 100 % 

– 

– 

– 

– 

– 

– 

– 

 23 

 55 

 37 

 0 

– 

 1 

– 

 4 

 15 

 89 

 14 

 100 % 

 1 

 100 % 

 8 

 100 % 

 14 

 100 % 

 6 

 100 % 

 0 

 100 % 

 0 

 100 % 

 256 

 99 % 

2 787 

 98 % 

 289 

 86 % 

 16 

 98 % 

 0 

 100 % 

 29 

 95 % 

 8 

 87 % 

 22 

 37 

 89 % 

 76 % 

 367 

 85 % 

170 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

– 

– 

– 

– 

– 

– 

– 

 4 

 59 

 46 

 0 

– 

 0 

– 

 3 

 12 

 67 

– 

– 

– 

– 

– 

– 

– 

 4 

 59 

 46 

 0 

– 

 0 

– 

 3 

 12 

 67 

Total 

13=10+ 
11+12 

 0 

– 

 0 

 0 

0 

 4 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 1 

 0 

 0 

– 

 1 

 1 

 0 

 0 

 0 

 0 

– 

 0 

 (0) 

0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 1 

 0 

 0 

– 

 1 

 1 

 0 

 0 

 0 

– 

– 

– 

 0 

0 

 4 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

0 

 0 

 (0) 

– 

– 

– 

– 

– 

– 

– 

 (0) 

– 

 0 

– 

– 

 0 

– 

– 

 0 

 0 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Programme 

Commitments made 

Total 
appropr.  
available 

from 
final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried 
over 
to 2024 

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 

  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 

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) 

 363 

 157 

 323 

 123 

 74 

 59 

 17 

 3 

 16 

 7 

 6 

 31 

 78 

 39 

– 

 63 

 56 

 14 

 3 

 11 

 6 

 6 

 19 

 33 

 17 

– 

5 235 

4 649 

12 740 

11 300 

5 331 

 115 

5 446 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 1 

 1 

– 

– 

– 

 25 

 12 

 8 

 2 

 1 

– 

 4 

 0 

 0 

 7 

 37 

 19 

– 

 348 

 135 

 71 

 58 

 15 

 96 % 

 86 % 

 96 % 

 97 % 

 88 % 

 3 

 100 % 

 15 

 92 % 

 7 

 6 

 96 % 

 98 % 

 26 

 84 % 

 70 

 35 

– 

 89 % 

 91 % 

- 

 406 

5 056 

 97 % 

1 003 

12 303 

97 % 

3 626 

3 626 

 68 % 

 59 

 59 

 51 % 

3 685 

3 685 

68 % 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 1 

 1 

– 

– 

– 

 15 

 22 

 15 

 22 

 3 

 2 

 1 

– 

 1 

 0 

 0 

 5 

 8 

 4 

– 

 3 

 2 

 1 

– 

 1 

 0 

 0 

 5 

 8 

 4 

– 

 138 

 139 

 390 

 391 

1 705 

1 705 

 56 

 56 

1 761 

1 761 

 0 

 0 

 0 

 0 

 1 

– 

 0 

 0 

 0 

 0 

 0 

 0 

– 

 39 

 45 

– 

– 

– 

– 

1 351 

 250 

 700 

 217 

 8 

– 

– 

– 

1 829 

1 318 

 46 

 161 

1 525 

 83 % 

 8 

 4 % 

– 

 7 

 10 

 10 

 197 

 297 

 304 

– 

 950 

 70 % 

 400 

– 

 400 

3 397 

1 576 

 746 

 161 

2 483 

73 % 

 407 

 307 

 714 

 197 

Total 

13=10+ 
11+12 

 0 

 0 

 0 

 0 

 1 

– 

 0 

 0 

 0 

 0 

 0 

 0 

– 

 39 

 45 

– 

– 

– 

 1 

 199 

– 

 200 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 0 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

 0 

 0 

– 

– 

 0 

 0 

 0 

 0 

 0 

– 

 0 

 0 

– 

– 

– 

 1 

 1 

– 

 3 

  Total 

344 131  184 363 

2 706  145 221  332 290 

97 % 

 808 

9 444  10 252 

1 306 

 15 

 268 

1 589 

171 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.9.  DETAILED MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS 

Annual accounts of the European Union 2023 

Programme 

Total 
appropr. 
available 

Payments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2024 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

from 
final 
adopted 
budget 

EUR million 

Appropriations lapsing 

from 
carry-
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

1  Horizon Europe 

17 753 

11 549 

  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 

 355 

 416 

 483 

 10 

 208 

 405 

– 

 9 

2 590 

2 531 

 382 

2 494 

 532 

 150 

 895 

 229 

 87 

 13 

 32 

 527 

 146 

 838 

 218 

 1 

 13 

 30 

 783 

 701 

 27 

 39 

 124 

 138 

 9 

 9 

 25 

 36 

 114 

 124 

 9 

 8 

  European Space Programme 

2 404 

2 087 

  Decentralised agencies 

 77 

 75 

 60 

 15 

 1 

– 

– 

 0 

 0 

 1 

 0 

 9 

– 

– 

– 

– 

 6 

– 

 0 

 0 

– 

– 

– 

 4 

– 

5=2+ 
3+4 
14 568 

2 958 

 11 

 6 

 82 % 

 234 

 66 % 

 412 

 99 % 

 105 

 105 

 22 % 

– 

 9 

 87 % 

1 930 

2 313 

 89 % 

 19 

2 514 

 99 % 

 1 

 2 

 35 

 9 

– 

– 

 0 

 21 

 1 

 3 

 4 

 7 

 0 

– 

 529 

 148 

 882 

 228 

 99 % 

 98 % 

 99 % 

 99 % 

 1 

 1 % 

 13 

 99 % 

 30 

 93 % 

 728 

 93 % 

 27 

 100 % 

 39 

 98 % 

 119 

 131 

 9 

 8 

 95 % 

 95 % 

 99 % 

 91 % 

 110 

2 201 

 92 % 

 2 

 77 

 100 % 

172 

 67 

 15 

3 110 

3 177 

 103 

 118 

 2 

– 

– 

 1 

 1 

 2 

 1 

 7 

– 

– 

– 

– 

 8 

– 

 0 

 0 

– 

– 

– 

 5 

– 

 2 

 4 

 377 

 377 

– 

– 

 270 

 15 

 271 

 17 

 1 

 1 

 1 

 2 

 3 

 2 

 8 

 2 

 85 

 85 

– 

 1 

– 

 1 

 43 

 51 

 0 

 0 

 5 

 7 

 0 

– 

 0 

 1 

 5 

 7 

 0 

– 

 197 

 202 

 0 

 0 

 0 

 1 

 0 

– 

 1 

 7 

 1 

 0 

 1 

 1 

– 

 0 

 0 

 1 

 4 

 0 

 0 

 0 

 0 

 0 

 1 

 0 

– 

 6 

 1 

 0 

– 

– 

 0 

 0 

 0 

 0 

 1 

– 

– 

– 

– 

 0 

– 

 0 

 0 

– 

– 

– 

 1 

– 

Total 

13=10+ 
11+12 

 9 

 2 

 0 

– 

 1 

 7 

 1 

 1 

 1 

 4 

 2 

 0 

– 

– 

– 

 0 

 (0) 

 0 

– 

 3 

 (0) 

 (0) 

– 

– 

– 

 0 

 0 

– 

– 

– 

– 

– 

 0 

 0 

 0 

 0 

 1 

 4 

 0 

 0 

 0 

 0 

 0 

 1 

 1 

 0 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Programme 

Total 
appropr. 
available 

Payments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2024 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

from 
final 
adopted 
budget 

EUR million 

Appropriations lapsing 

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 & preparatory 
actions 

  Union Secure Connectivity 
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 

0 

 0 

0 

– 

0 

– 

0 

– 

0 

– 

- 

– 

0 

 0 

0 

– 

0 

 0 

0 

– 

29 688 

20 000 

 98 

5 225 

25 323 

85 % 

 110 

4 221 

4 331 

 19 

36 757 

25 599 

10 494 

9 549 

2 071 

2 069 

 4 

 3 

21 482 

12 005 

 47 

 39 

 0 

 0 

– 

– 

 1 

 0 

9 372 

34 972 

 95 % 

 224 

9 773 

 93 % 

 1 

– 

2 070 

 100 % 

 3 

 70 % 

6 872 

18 878 

 88 % 

 1 

 40 

 85 % 

49 045 

 113 

 2 

47 287 

47 402 

 97 % 

 1 

1 348 

1 346 

 530 

 53 

 1 

 667 

 232 

 501 

 1 

 317 

 253 

– 

 12 

 94 

– 

 12 

 79 

 1 

– 

 29 

 16 

 3 

– 

– 

– 

– 

 0 

 0 

 652 

 18 

 1 

 35 

– 

– 

 6 

 1 

 81 % 

 696 

 900 

 522 

 52 % 

 67 % 

 99 % 

 2 

 4 % 

 288 

 91 % 

– 

- 

 12 

 98 % 

 86 

 91 % 

4 134 

3 363 

 12 

 398 

3 774 

 91 % 

 173 

 406 

 123 

 377 

 4 

 2 

 11 

 12 

 138 

 80 % 

 391 

 96 % 

173 

 1 

 0 

– 

– 

 1 

 0 

 2 

 0 

 649 

 125 

 5 

– 

– 

– 

– 

 1 

 16 

 5 

 4 

1 777 

1 777 

 721 

 721 

 1 

– 

 1 

– 

2 603 

2 603 

 7 

 7 

1 641 

1 643 

– 

 3 

 321 

 1 

 45 

 29 

– 

 0 

 6 

 0 

 651 

 446 

 6 

 45 

 29 

– 

 0 

 8 

 344 

 359 

 8 

 0 

 0 

 1 

 0 

 0 

 0 

 0 

– 

– 

 0 

– 

 0 

– 

 0 

 0 

 0 

 30 

 9 

 34 

 13 

 (0) 

 0 

0 

– 

 9 

 0 

 0 

– 

– 

 1 

 0 

 0 

– 

 0 

– 

 1 

– 

– 

– 

– 

 0 

 0 

 0 

 1 

0 

– 

 5 

 0 

– 

 0 

– 

– 

– 

– 

– 

– 

 0 

 0 

 6 

– 

– 

– 

 0 

 0 

– 

 0 

Total 

13=10+ 
11+12 

0 

– 

 34 

 9 

 0 

 0 

 1 

 1 

 0 

 0 

 0 

 0 

 0 

 1 

 6 

 0 

– 

 0 

 0 

 0 

 0 

 1 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Programme 

Total 
appropr. 
available 

Payments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2024 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

from 
final 
adopted 
budget 

1 

2 

3 

4 

5=2+ 
3+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

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 
3  Agricultural Guarantees 
Other progr. of Natural 
Resources and Environment 
Agricultural Fund for Rural 
Development 

  Maritime and Fisheries 

  Fisheries (SFPA and RFMO) 

  Decentralised agencies 

  Other actions 

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 
Asylum, Migration and 
Integration  

4 

 39 

 150 

 274 

 5 

 35 

 36 

 144 

 267 

 3 

 33 

 181 

 175 

 0 

 1 

– 

– 

– 

– 

 1 

 1 

 3 

 2 

 0 

 3 

 38 

 96 % 

 146 

 271 

 98 % 

 99 % 

 4 

 99 % 

 33 

 94 % 

 178 

 98 % 

 1 

 1 

– 

– 

– 

– 

 1 

 1 

 3 

 0 

 0 

 3 

 1 

 2 

 3 

 0 

 0 

 3 

128 996 

55 644 

 72 

64 901  120 617 

94 % 

 811 

7 545 

8 356 

41 811 

40 361 

 474 

 286 

41 120 

 98 % 

 316 

 341 

 657 

0 

0 

17 335 

14 210 

0 

 0 

 1 

– 

– 

– 

– 

0 

0 

- 

2 217 

16 427 

 95 % 

 44 

1 036 

 96 % 

– 

 1 

– 

– 

 7 

 116 

 100 % 

 30 

 98 % 

– 

 3 

- 

 85 % 

 533 

 98 % 

 990 

 116 

 30 

– 

 3 

 520 

 6 

 2 

 10 

 57 

 9 

– 

– 

– 

– 

 125 

 127 

 76 % 

 2 

 7 

 0 

 12 

 4 % 

 64 

 99 % 

 9 

 92 % 

1 081 

 116 

 31 

– 

 3 

 543 

 168 

 281 

 64 

 9 

0 

 0 

 1 

– 

– 

– 

– 

 7 

– 

– 

– 

– 

0 

0 

 906 

 906 

 44 

 45 

– 

 1 

– 

– 

 2 

– 

 1 

– 

– 

 9 

 41 

 41 

 269 

 269 

 0 

– 

 0 

– 

61 442 

56 306 

 481 

2 689 

59 476 

97 % 

 324 

1 604 

1 928 

  Decentralised agencies 

 183 

 162 

1 082 

1 023 

 1 

– 

 4 

 8 

1 029 

 95 % 

 170 

 93 % 

 2 

– 

 6 

 13 

 8 

 13 

174 

EUR million 

Appropriations lapsing 

from 
carry-
overs 

from 
assigned 
revenue 

 0 

 1 

 0 

 0 

 2 

 0 

 13 

 22 

0 

 2 

 0 

– 

– 

– 

 0 

 0 

– 

 0 

– 

 1 

 26 

 46 

– 

 0 

 0 

– 

– 

– 

– 

 3 

 12 

0 

 0 

 0 

– 

– 

– 

– 

 0 

– 

– 

– 

– 

 12 

 0 

– 

– 

– 

 0 

– 

 0 

– 

 7 

– 

0 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

 0 

– 

 0 

– 

 0 

Total 

13=10+ 
11+12 

 0 

 1 

 0 

 0 

 2 

 0 

 23 

 34 

0 

 2 

 0 

– 

– 

– 

 0 

 0 

– 

 0 

 0 

 1 

 38 

 46 

 0 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Programme 

Total 
appropr. 
available 

Payments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2024 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

from 
final 
adopted 
budget 

EUR million 

Appropriations lapsing 

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 
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 

Defence instrument on 
common procurement 
Defence Industrial 
Reinforcement instrument 
European Defence industry 
Programme 
Pilot projects and prep. 
actions 

  Union Secure Connectivity 

Total Heading 5: Security and 
Defence 
Neighbourhood, Developm. 
and Intl. Cooperation 
Instrument for Nuclear Safety 

6 

 0 

– 

 543 

 389 

 0 

 0 

1 094 

1 020 

2 903 

2 594 

 199 

 102 

 52 

 177 

 102 

 48 

 247 

 231 

– 

– 

 19 

 175 

 362 

 263 

– 

 1 

0 

 1 

– 

 19 

 167 

 355 

 262 

– 

– 

0 

 1 

– 

– 

 1 

 0 

– 

 2 

 1 

– 

 2 

– 

– 

– 

 1 

 1 

 0 

– 

– 

0 

– 

– 

– 

 8 

– 

 48 

 68 

 3 

– 

 0 

 6 

– 

 0 

 4 

 5 

– 

– 

– 

0 

 0 

– 

– 

– 

 397 

 73 % 

 0 

 63 % 

1 068 

 98 % 

2 665 

92 % 

 181 

 91 % 

 102 

 100 % 

 50 

 97 % 

 237 

 96 % 

– 

- 

 19 

 99 % 

 173 

 99 % 

 360 

 99 % 

 263 

 100 % 

– 

– 

0 

- 

– 

- 

 1 

 100 % 

– 

- 

– 

 1 

 0 

– 

 3 

 2 

– 

 1 

– 

– 

– 

 1 

 2 

 1 

– 

 1 

0 

– 

– 

– 

– 

– 

 125 

 126 

 19 

– 

 26 

 0 

 26 

 170 

 173 

 1 

– 

 0 

 3 

– 

 1 

 11 

 11 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

 1 

 2 

 1 

– 

 1 

0 

– 

– 

 0 

– 

 65 

 15 

 0 

 0 

– 

– 

 0 

 (0) 

 0 

 0 

– 

– 

0 

– 

– 

– 

 0 

 0 

– 

 1 

 0 

– 

 0 

– 

– 

– 

 0 

 0 

 0 

– 

– 

0 

– 

– 

1 422 

1 363 

 5 

 18 

1 386 

97 % 

10 047 

9 055 

 59 

 546 

9 660 

 96 % 

 42 

 40 

 1 

– 

 41 

 97 % 

 8 

 55 

 1 

 12 

 20 

 16 

 315 

 370 

 1 

 1 

 0 

 0 

 0 

 16 

 0 

 0 

 0 

– 

 0 

 0 

– 

– 

– 

 0 

– 

– 

 0 

– 

– 

– 

– 

0 

– 

– 

 0 

– 

– 

175 

Total 

13=10+ 
11+12 

 0 

 19 

 0 

 0 

 65 

 15 

 0 

 0 

 0 

– 

 0 

 0 

 0 

 0 

– 

– 

0 

– 

– 

 16 

 16 

 0 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Programme 

Total 
appropr. 
available 

Payments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2024 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

from 
final 
adopted 
budget 

EUR million 

Appropriations lapsing 

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 

(EINS) 

  Humanitarian Aid (HUMA) 

2 515 

2 465 

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 

 410 

 386 

 69 

 54 

 0 

 87 

 47 

 52 

 0 

 85 

 8 

 0 

 1 

– 

– 

– 

 26 

 23 

– 

 1 

– 

 0 

2 499 

 99 % 

 409 

 100 % 

 48 

 69 % 

 53 

 99 % 

 0 

 99 % 

 85 

 98 % 

 6 

 0 

 8 

– 

– 

– 

 10 

 0 

 14 

 0 

 0 

 0 

 16 

 1 

 21 

 0 

 0 

 0 

 0 

 (0) 

– 

 0 

– 

 2 

2 645 

2 287 

 11 

 139 

2 436 

 92 % 

 73 

 117 

 190 

 12 

0 

0 

0 

0 

0 

- 

0 

0 

0 

0 

 0 

 0 

 0 

– 

– 

– 

 6 

0 

15 870 

14 417 

 80 

 734 

15 232 

96 % 

 143 

 457 

 600 

 14 

 23 

2 607 

2 347 

 14 

 14 

 1 

 8 

 1 

 8 

 14 

 14 

 6 

 0 

 0 

 6 

 0 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

 1 

 0 

 259 

2 606 

 100 % 

– 

– 

– 

– 

– 

– 

– 

 14 

 100 % 

 1 

 100 % 

 8 

 100 % 

 14 

 100 % 

 6 

 100 % 

 0 

 100 % 

 0 

 100 % 

 22 

 55 

 36 

 0 

 256 

 98 % 

2 787 

 98 % 

 293 

 78 % 

 16 

 95 % 

176 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 1 

 32 

 0 

 0 

 0 

– 

– 

– 

– 

– 

– 

– 

 4 

 59 

 47 

 0 

– 

– 

– 

– 

– 

– 

– 

 5 

 60 

 79 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 1 

 0 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 5 

 0 

  European schools 

 261 

 233 

  Remuneration statutory staff 

2 848 

2 731 

  Remuneration external staff 
Members - Salaries and 
allowances 

 378 

 219 

 38 

 17 

 15 

 0 

Total 

13=10+ 
11+12 

 0 

 0 

 0 

 0 

– 

 2 

 19 

0 

 38 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 1 

 5 

 0 

 (0) 

 0 

– 

– 

– 

– 

 0 

0 

 0 

 (0) 

– 

– 

– 

– 

– 

– 

– 

 (0) 

– 

 0 

– 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Programme 

Total 
appropr. 
available 

Payments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2024 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

from 
final 
adopted 
budget 

EUR million 

Appropriations lapsing 

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 - 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 

 0 

 34 

 9 

 35 

 64 

 590 

 365 

 226 

 107 

 71 

 24 

 3 

 23 

 8 

 9 

 46 

 83 

 47 

– 

 0 

 27 

 8 

 9 

– 

 2 

– 

 9 

 15 

 13 

 148 

 154 

 318 

 65 

 30 

 45 

 8 

 2 

 7 

 5 

 2 

 8 

 31 

 13 

– 

 2 

 66 

 33 

 8 

 3 

 0 

 7 

 1 

 2 

 15 

 5 

 8 

– 

– 

 1 

– 

 2 

 10 

 47 

 22 

 6 

 2 

 2 

 0 

– 

 2 

 0 

– 

 6 

 36 

 13 

– 

 0 

 100 % 

 30 

 87 % 

 8 

 87 % 

 20 

 38 

 59 % 

 60 % 

– 

 2 

– 

 8 

 7 

– 

 0 

– 

 5 

 17 

– 

 2 

– 

 13 

 25 

 350 

 59 % 

 129 

 109 

 238 

 342 

 137 

 65 

 54 

 94 % 

 61 % 

 61 % 

 77 % 

 12 

 48 % 

 2 

 76 % 

 15 

 65 % 

 6 

 4 

 75 % 

 44 % 

 5 

 57 

 32 

 11 

 6 

 1 

 5 

 2 

 5 

 29 

 63 % 

 11 

 72 

 87 % 

 33 

 71 % 

– 

- 

 2 

 4 

– 

 17 

 28 

 9 

 2 

 2 

– 

 3 

 0 

 0 

 6 

 9 

 9 

– 

 22 

 85 

 41 

 13 

 8 

 1 

 8 

 2 

 5 

 17 

 11 

 13 

– 

5 889 

4 083 

 593 

 363 

5 039 

 86 % 

 567 

 194 

 761 

13 787 

10 414 

 962 

 884 

12 260 

89 % 

 887 

 522 

1 409 

8 318 

 116 

8 434 

– 

– 

– 

– 

– 

– 

 169 

 56 

 226 

 169 

 2 % 

 56 

 49 % 

 226 

3 % 

– 

– 

– 

8 149 

8 149 

 60 

 60 

8 208 

8 208 

– 

 1 

 1 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

 1 

– 

 0 

 0 

 0 

 0 

 0 

 0 

– 

 39 

 45 

– 

– 

– 

– 

 1 

– 

 1 

 1 

 1 

 0 

 3 

 1 

 3 

 4 

 0 

 0 

 0 

 0 

 0 

 0 

 0 

– 

 48 

 71 

– 

– 

– 

– 

 0 

– 

– 

 0 

 0 

 0 

 0 

– 

 0 

 0 

– 

– 

 0 

 0 

 0 

 0 

 0 

– 

 2 

 3 

– 

– 

– 

177 

Total 

13=10+ 
11+12 

– 

 2 

 1 

 1 

 1 

 2 

 0 

 3 

 1 

 4 

 5 

 0 

 0 

 0 

 0 

 1 

 0 

 1 

– 

 89 

 118 

– 

– 

– 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total 

13=10+ 
11+12 

 1 

 0 

– 

 1 

Annual accounts of the European Union 2023 

Programme 

Total 
appropr. 
available 

Payments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over 
to 2024 

from 
final 
adopted 
budget 

from 
assigned 
revenue 

Total 

from 
final 
adopted 
budget 

EUR million 

Appropriations lapsing 

from 
carry-
overs 

from 
assigned 
revenue 

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) 

1 

2 

3 

4 

5=2+ 
3+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

1 351 

 250 

 700 

 19 

 7 

 0 

1 829 

 997 

 46 

– 

 1 

– 

 950 

 70 % 

 400 

– 

 400 

 8 

 45 % 

 0 

 10 

 10 

1 043 

 57 % 

 328 

 458 

 786 

3 198 

1 254 

 746 

 1 

2 001 

63 % 

 728 

 468 

1 196 

– 

 0 

– 

 0 

– 

 0 

– 

 0 

 1 

– 

– 

 1 

  Total 

265 740  161 992  2 447  74 747  239 186 

90 % 

3 014  23 207  26 221 

 197 

 119 

 17 

 333 

178 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.10.  DETAILED MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) 

Annual accounts of the European Union 2023 

Commitments outstanding at the end of previous year 

Commitments of the current year 

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 

  European Space Programme 

  Decentralised agencies 

  Pilot projects & preparatory actions 

Commitm. 
carried 
forward from 
previous 
year 
1 

27 655 

 301 

1 433 

 95 

 30 

4 708 

6 862 

3 994 

 543 

1 622 

 51 

– 

 43 

 39 

Decommitm./ 
Revaluations/ 
Cancellations 

Payments 

Commitm. 
outstanding 
at year-end 

Commitm. 
made during 
the year 

Payments 

2 

3 

4=1+2+3 

5 

6 

 (502) 

(10 425) 

16 728 

15 363 

(4 143) 

 (5) 

 (0) 

 (7) 

 (0) 

 (58) 

 (141) 

 (26) 

 (36) 

 (2) 

– 

– 

 (0) 

 (2) 

 (95) 

 (340) 

 (49) 

 (9) 

(1 630) 

(2 500) 

 (525) 

 (143) 

 (624) 

 (48) 

– 

 (12) 

 (24) 

 201 

1 093 

 39 

 21 

3 020 

4 221 

3 443 

 364 

 996 

 3 

– 

 31 

 14 

1 045 

 (33) 

 (539) 

 473 

 34 

 42 

 141 

 0 

 7 

 25 

1 439 

 20 

0 

 (4) 

 (1) 

 (2) 

 (0) 

 (0) 

 (1) 

 (1) 

– 

0 

 (17) 

 (28) 

 (93) 

– 

 (5) 

 (8) 

 (903) 

 (20) 

0 

179 

 14 

 14 

 46 

– 

 2 

 16 

 535 

– 

0 

 295 

 556 

 152 

 27 

3 497 

2 295 

 434 

 291 

1 379 

 216 

 4 

 4 

 28 

 665 

 25 

 39 

 126 

 131 

 9 

 6 

2 177 

(1 298) 

 77 

0 

 (57) 

0 

Cancellation 
of commitm. 
which cannot 
be carried 
over 
7 

 (9) 

 (0) 

 (1) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
the year 

Commitm. 
outstanding 
at year-end 

8=5+6+7 

9=4+8 

11 211 

27 939 

 156 

 483 

 96 

 27 

2 814 

2 282 

 430 

 286 

1 120 

 36 

 2 

 3 

 22 

 476 

 15 

 28 

 100 

 0 

 6 

 6 

 879 

 20 

0 

 357 

1 576 

 135 

 48 

5 834 

6 503 

3 873 

 650 

2 116 

 39 

 2 

 34 

 36 

 949 

 29 

 42 

 146 

 0 

 7 

 21 

1 413 

 20 

0 

– 

– 

– 

– 

– 

– 

– 

– 

0 

 (139) 

 (72) 

 (56) 

 (0) 

 (683) 

 (14) 

 (4) 

 (5) 

 (259) 

 (180) 

 (1) 

 (1) 

 (6) 

 (10) 

 (11) 

 (26) 

 (131) 

 (4) 

– 

 (189) 

 (0) 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Commitments outstanding at the end of previous year 

Commitments of the current year 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
the year 

Programme 

Commitm. 
carried 
forward from 
previous 
year 
1 

Decommitm./ 
Revaluations/ 
Cancellations 

Payments 

Commitm. 
outstanding 
at year-end 

Commitm. 
made during 
the year 

Payments 

2 

3 

4=1+2+3 

5 

6 

Cancellation 
of commitm. 
which cannot 
be carried 
over 
7 

Commitm. 
outstanding 
at year-end 

8=5+6+7 

9=4+8 

  Union Secure Connectivity 

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 

  Rights and Values 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 

– 

50 130 

85 960 

15 198 

6 648 

 6 

46 489 

 107 

141 037 

 1 

 29 

1 150 

1 063 

 62 

 35 

 0 

 10 

 174 

1 870 

 166 

 483 

 63 

 213 

 41 

 12 

 68 

– 

– 

– 

 156 

– 

– 

 156 

 156 

 (821) 

(18 037) 

31 272 

27 951 

(7 286) 

 (11) 

20 654 

51 926 

 (207) 

(33 930) 

51 823 

40 288 

(1 042) 

 (53) 

 (46) 

 (0) 

 (8) 

 (0) 

(9 112) 

(2 059) 

 (3) 

6 034 

4 543 

 3 

7 088 

1 548 

– 

(18 383) 

28 098 

17 648 

 (39) 

 68 

 34 

 (11) 

(46 412) 

94 614 

120 894 

 (0) 

 (0) 

 (11) 

 (8) 

 (20) 

 (0) 

 (0) 

 (1) 

 (4) 

 (46) 

 (12) 

 (11) 

 (2) 

 (10) 

 (0) 

 (1) 

 (1) 

 (1) 

 (29) 

 (351) 

 (363) 

 (2) 

 (13) 

– 

 (9) 

 (67) 

 (722) 

 (42) 

 (243) 

 (17) 

 (83) 

 (7) 

 (4) 

 (31) 

180 

 0 

– 

 788 

 691 

 40 

 22 

 0 

 1 

 103 

1 102 

 112 

 230 

 44 

 120 

 33 

 7 

 36 

 1 

1 318 

1 467 

 769 

– 

 296 

– 

 12 

 100 

4 033 

 151 

 347 

 43 

 215 

 279 

 9 

 31 

 (661) 

 (11) 

– 

 (495) 

 (1) 

 (990) 

 (0) 

 (667) 

 (549) 

 (159) 

– 

 (275) 

– 

 (3) 

 (19) 

(3 051) 

 (97) 

 (149) 

 (20) 

 (64) 

 (263) 

 (1) 

 (2) 

 (0) 

 (0) 

– 

– 

 (0) 

 (0) 

– 

– 

– 

 (0) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

39 246 

6 427 

1 537 

– 

91 069 

12 460 

6 080 

 3 

17 153 

45 251 

 32 

 100 

119 904 

214 518 

 1 

 651 

 918 

 610 

– 

 21 

– 

 9 

 80 

 981 

 54 

 198 

 23 

 151 

 15 

 8 

 29 

 1 

 651 

1 707 

1 301 

 40 

 43 

 0 

 10 

 184 

2 083 

 166 

 427 

 67 

 272 

 49 

 16 

 65 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Commitments outstanding at the end of previous year 

Commitments of the current year 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
the year 

Programme 

Commitm. 
carried 
forward from 
previous 
year 
1 

Decommitm./ 
Revaluations/ 
Cancellations 

Payments 

Commitm. 
outstanding 
at year-end 

Commitm. 
made during 
the year 

Payments 

2 

3 

4=1+2+3 

5 

6 

Cancellation 
of commitm. 
which cannot 
be carried 
over 
7 

Commitm. 
outstanding 
at year-end 

8=5+6+7 

9=4+8 

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 

  Other actions 

  Pilot projects and prep. actions 

  Environment and Climate (LIFE) 

Just Transition Fund 
Loan facility under Just Transition 
Mechanism 

  Decentralised agencies 

  Pilot projects and prep. actions 

Total Heading 3: Natural Resources and 
Environment 

4  Asylum, Migration and Integration  

  Decentralised agencies 

  Pilot projects and prep. actions 

Border Mngmt. (IBMF) - Border mngmt 
and visa 
Border Mngmt. (IBMF) - Customs 
equipment 

  Decentralised agencies 

Total Heading 4: Migration and Border 
Management 

5  Internal Security Fund (ISF) 

 197 

 (6) 

 (125) 

 66 

 182 

 (52) 

– 

 129 

 195 

301 081 

 (456) 

(112 046) 

188 579 

196 751 

(8 572) 

 (1) 

188 178 

376 757 

 357 

0 

41 369 

3 173 

 24 

– 

– 

 5 

2 353 

6 143 

 10 

 3 

 21 

53 459 

2 265 

 18 

– 

1 244 

 137 

 344 

4 008 

 403 

 (13) 

 (116) 

 229 

41 134 

(41 005) 

0 

 (5) 

 (9) 

 (1) 

– 

– 

– 

 (40) 

 (3) 

 (0) 

 (3) 

 (0) 

0 

0 

0 

(15 730) 

(1 018) 

 (12) 

– 

– 

 (3) 

 (490) 

 (107) 

 (0) 

– 

 (9) 

25 634 

2 147 

 10 

– 

– 

 3 

1 823 

6 033 

 10 

– 

 13 

12 954 

1 171 

 117 

 30 

 4 

 2 

 766 

7 263 

 59 

 64 

 5 

0 

 (697) 

 (18) 

 (104) 

 (30) 

– 

– 

 (43) 

 (20) 

 (12) 

 (64) 

 (0) 

 (74) 

(17 484) 

35 901 

63 567 

(41 992) 

 (10) 

 (965) 

1 290 

– 

– 

 (5) 

– 

 (13) 

 (346) 

 (0) 

– 

 (23) 

 (13) 

 (0) 

 (218) 

(1 535) 

 (170) 

181 

 13 

– 

 884 

 137 

 126 

2 449 

 221 

1 494 

 165 

– 

 965 

 141 

 (63) 

 (165) 

– 

 (51) 

 (0) 

1 036 

 (850) 

3 801 

(1 129) 

 315 

 (10) 

– 

0 

 (0) 

 (0) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 (0) 

 (0) 

– 

– 

 (0) 

– 

– 

 (0) 

 (0) 

 129 

0 

12 257 

1 152 

 13 

– 

 4 

 2 

 724 

7 243 

 47 

– 

 5 

 358 

0 

37 891 

3 299 

 23 

– 

 4 

 4 

2 547 

13 276 

 57 

– 

 18 

21 575 

57 477 

1 430 

2 720 

– 

– 

 913 

 141 

 186 

2 671 

 304 

 13 

– 

1 798 

 278 

 312 

5 121 

 524 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Commitments outstanding at the end of previous year 

Commitments of the current year 

Programme 

Commitm. 
carried 
forward from 
previous 
year 
1 

Decommitm./ 
Revaluations/ 
Cancellations 

Payments 

Commitm. 
outstanding 
at year-end 

Commitm. 
made during 
the year 

Payments 

2 

3 

4=1+2+3 

5 

6 

Cancellation 
of commitm. 
which cannot 
be carried 
over 
7 

  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 

Defence instrument on common 
procurement 
Defence Industrial Reinforcement 
instrument 

  European Defence industry Programme 

  Pilot projects and prep. actions 

  Union Secure Connectivity 

  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) 

  Pilot projects and prep. actions 

 439 

 316 

– 

 1 

 25 

 492 

1 040 

 343 

– 

– 

0 

 2 

– 

– 

 (7) 

– 

– 

 (2) 

 (0) 

 (0) 

 (0) 

– 

– 

0 

– 

– 

 (102) 

 (42) 

– 

– 

 (13) 

 (166) 

 (304) 

 (223) 

– 

– 

0 

 (1) 

– 

 336 

 267 

– 

 1 

 11 

 325 

 735 

 120 

– 

– 

0 

 0 

– 

3 061 

 (22) 

(1 022) 

2 017 

 69 

 53 

 237 

– 

 22 

 328 

 644 

 295 

– 

 157 

0 

– 

 30 

2 149 

 (0) 

 (8) 

 (237) 

– 

 (6) 

 (7) 

 (56) 

 (40) 

– 

– 

0 

– 

– 

 (364) 

27 629 

(1 234) 

(6 851) 

19 543 

13 948 

(2 809) 

 142 

1 128 

 136 

 107 

 16 

 1 

 148 

7 655 

0 

 (7) 

 (1) 

 (4) 

 (1) 

 (1) 

 (1) 

 (3) 

 (36) 

 (670) 

 (67) 

 (40) 

 (10) 

 (0) 

 (56) 

 99 

 457 

 65 

 66 

 5 

 0 

 89 

 46 

 (5) 

2 434 

(1 828) 

 385 

 (342) 

 71 

 66 

– 

 93 

 (7) 

 (43) 

– 

 (30) 

 (91) 

(1 658) 

5 906 

2 556 

 (778) 

0 

0 

0 

0 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

 (0) 

 (0) 

– 

 (0) 

– 

– 

– 

– 

– 

– 

0 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
the year 

Commitm. 
outstanding 
at year-end 

8=5+6+7 

9=4+8 

 69 

 45 

– 

– 

 16 

 321 

 588 

 256 

– 

 157 

0 

– 

 30 

1 785 

 405 

 312 

– 

 1 

 26 

 646 

1 323 

 376 

– 

 157 

0 

 0 

 30 

3 803 

11 139 

30 682 

 41 

 606 

 42 

 63 

 23 

– 

 63 

 140 

1 063 

 108 

 129 

 28 

 0 

 153 

1 778 

7 684 

0 

0 

  Total Heading 6: Neighbourhood and the 

36 962 

(1 342) 

(9 389) 

26 232 

19 598 

(5 843) 

 (0) 

13 755 

39 987 

182 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Commitments outstanding at the end of previous year 

Commitments of the current year 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
the year 

Programme 

Commitm. 
carried 
forward from 
previous 
year 
1 

Decommitm./ 
Revaluations/ 
Cancellations 

Payments 

Commitm. 
outstanding 
at year-end 

Commitm. 
made during 
the year 

Payments 

2 

3 

4=1+2+3 

5 

6 

Cancellation 
of commitm. 
which cannot 
be carried 
over 
7 

Commitm. 
outstanding 
at year-end 

8=5+6+7 

9=4+8 

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 

  Meetings, committees, conference 

  Official journal 

  Publications 

  Acquisition of information 

 0 

– 

– 

– 

– 

– 

– 

– 

 1 

 0 

 43 

 0 

– 

 4 

– 

 11 

 16 

 155 

 2 

 69 

 33 

 11 

 7 

 0 

 7 

 2 

 (0) 

– 

– 

– 

– 

– 

– 

– 

– 

 (0) 

 (5) 

 (0) 

– 

 (1) 

– 

 (1) 

 (2) 

 (1) 

 (0) 

 (3) 

 (1) 

 (3) 

 (4) 

 (0) 

 (0) 

 (0) 

– 

– 

– 

– 

– 

– 

– 

– 

 (1) 

 (0) 

 (38) 

 (0) 

– 

 (2) 

– 

 (9) 

 (15) 

 (154) 

 (2) 

 (66) 

 (33) 

 (8) 

 (3) 

 (0) 

 (7) 

 (1) 

183 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

2 606 

(2 606) 

 14 

 1 

 8 

 14 

 6 

 0 

 0 

 (14) 

 (1) 

 (8) 

 (14) 

 (6) 

 (0) 

 (0) 

 256 

2 787 

 289 

 (255) 

(2 787) 

 (255) 

 16 

 0 

 29 

 8 

 22 

 37 

 367 

 348 

 135 

 71 

 58 

 15 

 3 

 15 

 7 

 (15) 

 (0) 

 (27) 

 (8) 

 (11) 

 (24) 

 (196) 

 (341) 

 (71) 

 (33) 

 (46) 

 (8) 

 (2) 

 (8) 

 (5) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 (1) 

 (1) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 1 

 0 

 33 

 0 

– 

 2 

– 

 11 

 13 

 172 

 7 

 63 

 38 

 11 

 7 

 1 

 6 

 2 

– 

– 

– 

– 

– 

– 

– 

– 

 1 

 0 

 33 

 0 

– 

 2 

– 

 11 

 13 

 172 

 7 

 63 

 38 

 11 

 7 

 1 

 6 

 2 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Commitments outstanding at the end of previous year 

Commitments of the current year 

Programme 

Commitm. 
carried 
forward from 
previous 
year 
1 

Decommitm./ 
Revaluations/ 
Cancellations 

Payments 

Commitm. 
outstanding 
at year-end 

Commitm. 
made during 
the year 

Payments 

2 

3 

4=1+2+3 

5 

6 

Cancellation 
of commitm. 
which cannot 
be carried 
over 
7 

  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) 

 3 

 15 

 5 

 8 

 0 

 654 

1 048 

3 068 

 3 

3 071 

– 

 0 

– 

 0 

 (0) 

 (0) 

 (0) 

 (0) 

 (0) 

 (2) 

 (15) 

 (5) 

 (8) 

– 

 (61) 

 (593) 

 (85) 

 (81) 

 (2) 

 (83) 

– 

 (0) 

– 

 (0) 

 (963) 

 (125) 

 (0) 

 (125) 

– 

 (0) 

– 

 (0) 

– 

– 

– 

– 

– 

– 

 6 

 26 

 70 

 35 

– 

 (2) 

 (14) 

 (67) 

 (25) 

– 

5 056 

(4 446) 

 0 

12 303 

(11 296) 

2 862 

 1 

2 863 

– 

– 

– 

– 

3 626 

 59 

3 685 

 950 

 8 

 (45) 

 (56) 

 (101) 

 (950) 

 (8) 

1 525 

(1 043) 

2 483 

(2 001) 

– 

– 

– 

– 

– 

 (2) 

 (3) 

– 

– 

– 

– 

– 

– 

– 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
the year 

Commitm. 
outstanding 
at year-end 

8=5+6+7 

9=4+8 

 5 

 12 

 2 

 10 

– 

 5 

 12 

 2 

 10 

– 

 608 

 608 

1 004 

3 581 

 3 

3 584 

– 

 0 

 482 

 482 

1 004 

6 443 

 4 

6 447 

– 

 0 

 482 

 482 

  Total 

452 821 

(2 905) 

(160 601) 

289 315 

332 290 

(78 585) 

 (16) 

253 689 

543 003 

184 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.11.   DETAILED MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN 

Annual accounts of the European Union 2023 

Programme 

<2017 

2017 

2018 

2019 

2020 

2021 

2022 

2023 

Total 

EUR million 

1 572 

3 156 

4 286 

6 070 

11 355 

27 939 

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 

  Union Secure Connectivity 

  Total Heading 1: Single Market, Innovation and Digital 

2  Regional Development (ERDF) 

  Cohesion Fund 

  Cohesion Fund contrib. to CEF-Transport 

 291 

 24 

– 

– 

– 

 175 

 86 

 23 

 0 

– 

– 

– 

– 

– 

 35 

 0 

– 

– 

– 

– 

– 

– 

– 

0 

– 

 634 

 893 

 113 

 360 

 424 

 0 

– 

– 

 0 

 94 

 16 

 312 

 2 

– 

– 

– 

– 

– 

 786 

 13 

– 

 0 

 1 

 82 

 94 

 178 

 6 

 0 

– 

– 

 0 

– 

– 

 0 

 0 

– 

– 

 0 

 7 

– 

0 

– 

1 182 

1 676 

 218 

 442 

– 

– 

 0 

– 

– 

– 

 0 

– 

0 

– 

 865 

1 343 

 182 

 352 

185 

 17 

 14 

 41 

 24 

– 

 5 

 1 

 108 

1 126 

 801 

 15 

 0 

– 

– 

 1 

 0 

 0 

 0 

 0 

– 

– 

 0 

 70 

 146 

 11 

 0 

 175 

1 601 

1 025 

 23 

 0 

– 

– 

 15 

 0 

 48 

 1 

 0 

 1 

– 

– 

 2 

 31 

 308 

 9 

 4 

 188 

 817 

 541 

 132 

 394 

– 

– 

 10 

 3 

 91 

 6 

 5 

 7 

– 

 1 

 1 

– 

0 

– 

 39 

 638 

 13 

 14 

 156 

 483 

 96 

 27 

2 198 

2 814 

 481 

 562 

 183 

 592 

 3 

– 

 5 

 10 

 205 

 6 

 8 

2 282 

 430 

 288 

1 130 

 36 

 2 

 3 

 22 

 498 

 15 

 28 

 39 

 100 

– 

 1 

 12 

 199 

– 

0 

– 

 0 

 6 

 6 

 879 

 20 

0 

 156 

 52 

 253 

 23 

– 

0 

– 

3 748 

2 493 

 377 

 959 

– 

0 

– 

6 529 

4 548 

 401 

1 418 

6 859 

11 278 

20 831 

6 628 

34 242 

39 246 

 214 

 495 

4 529 

6 427 

 517 

1 537 

 357 

1 576 

 135 

 48 

5 834 

6 503 

3 873 

 650 

2 116 

 39 

 2 

 34 

 36 

 949 

 29 

 42 

 146 

 0 

 7 

 21 

1 413 

 20 

0 

 156 

51 926 

91 069 

12 460 

6 080 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Programme 

<2017 

2017 

2018 

2019 

2020 

2021 

2022 

2023 

Total 

EUR million 

  Pilot projects and prep. actions 

  European Social Fund Plus (ESF+) 

  Support to Turkish-Cypriot Community 

  European Recovery and Resilience 

  Pericles IV 

  EU Recovery 

  RescEU 

  EU4Health 

  Emergency support within the Union (ESI) 

  Decentralised agencies 

  Pilot projects and prep. actions 

  Actions under prerogatives of Commission 

  Employment and Social Innovation 

  Erasmus+ 

  European Solidarity Corps (ESC) 

  Creative Europe 

Justice 

  Rights and Values 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 

  Actions under prerogatives of Commission 

– 

 457 

 5 

– 

– 

– 

– 

 0 

– 

– 

 0 

– 

 2 

 0 

 2 

– 

 0 

 3 

– 

 0 

 0 

 1 

 0 

 356 

 1 

 710 

– 

 1 

 0 

 2 

– 

 3 

 951 

1 125 

6 314 

18 186 

17 153 

45 251 

 1 

– 

– 

– 

 1 

 1 

– 

 0 

– 

– 

 2 

 0 

 0 

 0 

 7 

 2 

– 

– 

– 

 1 

 1 

 0 

– 

– 

 1 

 4 

– 

 0 

– 

– 

 2 

 3 

 0 

 1 

 4 

 3 

– 

 0 

 1 

 3 

 5 

 2 

 0 

– 

 12 

 9 

– 

 1 

– 

– 

 12 

 57 

 27 

 6 

 3 

 4 

– 

 0 

 1 

 5 

 12 

 17 

 26 

 32 

 100 

 2 

 0 

– 

 180 

 11 

 2 

 1 

– 

– 

 18 

 223 

 34 

 13 

 4 

 7 

 1 

 0 

 7 

 8 

13 894 

80 716  119 904 

214 518 

 0 

– 

 189 

 167 

 19 

 5 

– 

 0 

 20 

 293 

 22 

 61 

 9 

 20 

 22 

 1 

 7 

 11 

 0 

– 

 405 

 490 

 19 

 15 

– 

 1 

 47 

 526 

 26 

 148 

 16 

 81 

 11 

 6 

 19 

 38 

 1 

 651 

 918 

 619 

– 

 21 

– 

 9 

 80 

 981 

 54 

 198 

 23 

 151 

 15 

 8 

 29 

 1 

 651 

1 707 

1 301 

 40 

 43 

 0 

 10 

 184 

2 083 

 166 

 427 

 67 

 272 

 49 

 16 

 65 

 129 

 195 

  Total Heading 2: Cohesion, Resilience and Values 

1 835 

2 249 

3 070 

4 923 

8 017 

28 409 

140 066  188 188 

376 757 

3  Agricultural Guarantees 

  Other progr. of Natural Resources and Environment 

  Agricultural Fund for Rural Development 

– 

0 

– 

0 

2 251 

 764 

  Maritime and Fisheries 

  Fisheries (SFPA and RFMO) 

  Decentralised agencies 

  Other actions 

  Pilot projects and prep. actions 

 55 

– 

– 

– 

– 

 94 

 1 

– 

– 

– 

186 

 10 

0 

 775 

 130 

– 

– 

– 

– 

 19 

0 

 787 

 178 

– 

– 

– 

 1 

 37 

0 

 61 

0 

 102 

 129 

0 

0 

 358 

0 

1 623 

5 110 

14 324 

12 257 

37 891 

 480 

 145 

1 065 

1 152 

– 

– 

– 

 0 

 0 

– 

– 

– 

 9 

– 

– 

 1 

 13 

– 

 4 

 2 

3 299 

 23 

– 

 4 

 4 

 
 
 
 
 
 
 
 
 
 
 
 
 
  Environment and Climate (LIFE) 

 100 

 66 

 242 

 210 

 269 

 439 

 497 

 724 

2 547 

Programme 

<2017 

2017 

2018 

2019 

2020 

2021 

2022 

2023 

Total 

EUR million 

Annual accounts of the European Union 2023 

Just Transition Fund 

Loan facility under Just Transition Mechanism 

  Decentralised agencies 

  Pilot projects and prep. actions 

  Total Heading 3: Natural Resources and Environment 

4  Asylum, Migration and Integration  

  Decentralised agencies 

  Pilot projects and prep. actions 

  Border Mngmt. (IBMF) - Border mngmt and visa 

  Border Mngmt. (IBMF) - Customs equipment 

  Decentralised agencies 

  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 

  Defence instrument on common procurement 

  Defence Industrial Reinforcement instrument 

  European Defence industry Programme 

  Pilot projects and prep. actions 

  Union Secure Connectivity 

  Total Heading 5: Security and Defence 

6  Neighbourhood, Developm. and Intl. Cooperation 

Instrument for Nuclear Safety (EINS) 

  Humanitarian Aid (HUMA) 

– 

– 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

– 

 0 

– 

– 

– 

 4 

 0 

– 

– 

 2 

6 033 

7 243 

13 276 

 10 

– 

 6 

 47 

– 

 5 

 57 

– 

 18 

2 406 

 11 

 926 

 87 

1 156 

1 195 

2 414 

5 757 

22 047 

21 575 

57 477 

 82 

 174 

 589 

 52 

 295 

1 430 

2 720 

– 

– 

– 

– 

– 

– 

 26 

 168 

 359 

– 

– 

– 

– 

– 

– 

– 

– 

 56 

 72 

– 

 108 

 342 

 948 

 180 

 17 

 41 

 43 

– 

– 

 0 

– 

– 

– 

– 

– 

0 

 0 

– 

 29 

 64 

 45 

– 

– 

 0 

– 

 73 

 65 

 81 

– 

 1 

 1 

– 

 19 

 26 

– 

– 

– 

0 

– 

– 

– 

– 

– 

0 

– 

– 

 12 

 63 

 41 

– 

– 

 3 

 158 

 345 

 94 

– 

– 

0 

– 

– 

 13 

– 

 251 

 65 

 126 

 749 

 71 

 99 

 20 

– 

– 

 6 

 167 

 345 

 27 

– 

– 

0 

– 

– 

– 

– 

 913 

 141 

 186 

2 671 

 304 

 69 

 45 

– 

– 

 16 

 321 

 588 

 256 

– 

 157 

0 

– 

 30 

 13 

– 

1 798 

 278 

 312 

5 121 

 524 

 405 

 312 

– 

 1 

 26 

 646 

1 323 

 376 

– 

 157 

0 

 0 

 30 

 102 

 158 

 246 

 716 

 735 

1 785 

3 803 

1 287 

1 555 

2 112 

4 464 

8 553 

11 140 

30 682 

 12 

 0 

 11 

 14 

 15 

 11 

 26 

 121 

 28 

 310 

 41 

 606 

 140 

1 063 

– 

– 

 18 

– 

– 

 29 

 1 

 3 

 16 

– 

– 

 0 

– 

– 

– 

– 

– 

0 

– 

– 

 20 

 898 

 1 

 0 

– 

– 

 7 

– 

– 

 94 

 18 

 1 

 22 

– 

– 

 0 

– 

– 

– 

– 

– 

0 

– 

– 

 41 

 673 

 6 

 0 

187 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Programme 

<2017 

2017 

2018 

2019 

2020 

2021 

2022 

2023 

Total 

EUR million 

  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 

– 

– 

– 

– 

 0 

 340 

0 

 1 

– 

– 

 0 

 0 

 0 

– 

– 

 0 

 1 

 14 

 11 

 27 

 2 

– 

 0 

 2 

– 

– 

– 

 11 

 719 

0 

 3 

– 

– 

 30 

 13 

 61 

 5 

– 

 44 

 42 

 63 

 23 

– 

 63 

 157 

0 

 533 

1 060 

0 

0 

1 274 

1 823 

1 778 

0 

0 

0 

 108 

 129 

 28 

 0 

 153 

7 684 

0 

  Total Heading 6: Neighbourhood and the World 

1 238 

 837 

1 834 

2 658 

2 880 

5 945 

10 837 

13 757 

39 987 

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 

  Meetings, committees, conference 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 1 

 0 

 33 

 0 

– 

 2 

– 

 11 

 13 

 172 

 7 

 63 

 38 

 11 

 7 

– 

– 

– 

– 

– 

– 

– 

– 

 1 

 0 

 33 

 0 

– 

 2 

– 

 11 

 13 

 172 

 7 

 63 

 38 

 11 

 7 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

188 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Programme 

<2017 

2017 

2018 

2019 

2020 

2021 

2022 

2023 

Total 

EUR million 

  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) 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

 0 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

0 

 1 

 6 

 2 

 5 

 12 

 2 

 10 

– 

 608 

 0 

1 004 

 105 

2 757 

3 581 

– 

 1 

 3 

 1 

 6 

 2 

 5 

 12 

 2 

 10 

– 

 608 

1 004 

6 443 

 4 

 105 

2 758 

3 584 

6 447 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 0 

 482 

 482 

– 

 0 

 482 

 482 

  Total 

6 162 

5 013 

7 452 

13 024 

21 034 

47 971  188 470  253 877 

543 003 

As  a  result  from  re-allocation  of  commitments  in  the  framework  of  internal  re-organisations  a  shift  of  outstanding  amount  (188  EUR  million)  between  years  has  occurred.  The 
overall amount of outstanding commitments remains unchanged. 

189 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.12.  DETAILED MFF: OUTSTANDING COMMITMENTS BY APPROPRIATIONS TYPE 

Annual accounts of the European Union 2023 

From budget appropriations 

From assigned revenue appropriations 

Commitm. 
carried 
forward 
from 2022 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

22 971 

 (380) 

12 583 

11 668 

Amount 
remaining 
to be 
settled 
5=1+2+3-
4 
23 506 

Commitm. 
carried 
forward 
from 2022 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

6 

7 

8 

9 

Amount 
remaining 
to be 
settled 
10=6+7+
8-9 

4 683 

 (131) 

2 781 

2 900 

4 433 

27 939 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
2023 

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 

  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 

  Union Secure Connectivity 

 245 

1 433 

0 

 30 

2 325 

6 787 

3 944 

 541 

1 592 

 49 

– 

 43 

 34 

 (4) 

 (1) 

0 

 (0) 

 (55) 

 (133) 

 (26) 

 (36) 

 (1) 

– 

– 

 (0) 

 (1) 

1 017 

 (31) 

 34 

 40 

 137 

– 

 7 

 25 

1 268 

 18 

– 

 (4) 

 (0) 

 (2) 

– 

 (0) 

 (1) 

 (1) 

– 

– 

 286 

 550 

– 

 27 

 341 

2 281 

 426 

 289 

1 340 

 206 

 4 

 4 

 25 

 633 

 25 

 36 

 121 

 124 

 9 

 6 

 223 

 411 

– 

 9 

 358 

2 493 

 526 

 148 

 861 

 217 

 1 

 13 

 27 

 702 

 26 

 36 

 115 

 124 

 9 

 8 

 304 

1 570 

– 

 48 

2 253 

6 442 

3 819 

 647 

2 070 

 39 

 2 

 34 

 31 

 917 

 29 

 40 

 141 

 0 

 7 

 21 

 57 

 0 

 95 

0 

2 383 

 75 

 50 

 2 

 30 

 1 

0 

0 

 5 

 28 

 0 

 2 

 3 

 0 

– 

0 

 (1) 

– 

 (7) 

0 

 (3) 

 (8) 

 (0) 

 (0) 

 (1) 

– 

0 

0 

 (1) 

 (2) 

 (0) 

 (0) 

 (0) 

 (0) 

– 

0 

 9 

 6 

 11 

 1 

 54 

 6 

 152 

 105 

 135 

0 

0 

0 

3 156 

1 955 

3 582 

 15 

 8 

 2 

 39 

 9 

0 

0 

 3 

 21 

 3 

 0 

 21 

 11 

0 

0 

 3 

 32 

 26 

 0 

 3 

 4 

 7 

 0 

0 

 0 

 3 

 3 

 7 

– 

0 

 61 

 54 

 3 

 46 

– 

0 

0 

 5 

 32 

 0 

 2 

 4 

– 

 0 

0 

2 045 

2 088 

1 223 

 172 

 (0) 

 131 

 113 

 190 

 75 

 156 

 75 

– 

 18 

 156 

 2 

0 

– 

0 

 2 

0 

 2 

0 

 2 

0 

 357 

1 576 

 135 

 48 

5 834 

6 503 

3 873 

 650 

2 116 

 39 

 2 

 34 

 36 

 949 

 29 

 42 

 146 

 0 

 7 

 21 

1 413 

 20 

 156 

190 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Heading 

Total Heading 1: Single Market, 
Innovation and Digital 

From budget appropriations 

From assigned revenue appropriations 

Commitm. 
carried 
forward 
from 2022 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

Amount 
remaining 
to be 
settled 
5=1+2+3-
4 

Commitm. 
carried 
forward 
from 2022 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

6 

7 

8 

9 

Amount 
remaining 
to be 
settled 
10=6+7+
8-9 

42 542 

 (677) 

21 590 

20 137 

43 318 

7 588 

 (155) 

6 361 

5 186 

8 608 

2  Regional Development (ERDF) 

54 315 

 (199) 

37 793 

17 335 

74 573 

31 644 

  Cohesion Fund 

10 130 

 (53) 

6 400 

5 064 

11 413 

5 068 

Cohesion Fund contrib. to CEF-
Transport 

6 634 

 (45) 

1 548 

2 070 

6 066 

– 

 3 

 3 

16 300 

7 863 

31 288 

23 631 

 99 

 3 

 14 

0 

 (8) 

– 

 (1) 

0 

 (1) 

– 

2 496 

17 636 

16 496 

 688 

4 709 

1 048 

– 

0 

– 

0 

 13 

0 

1 348 

11 015 

13 963 

45 251 

 0 

 2 

 1 

 100 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
2023 

11=5+10 

51 926 

91 069 

12 460 

6 080 

 3 

  Pilot projects and prep. actions 

 6 

  European Social Fund Plus (ESF+) 

22 858 

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 

 104 

 160 

 1 

 29 

 557 

1 039 

 43 

 34 

 0 

 10 

 167 

1 646 

 149 

 469 

 60 

 212 

 40 

 11 

 68 

 (0) 

 (7) 

 (0) 

 (7) 

 (0) 

 (0) 

 (9) 

 (8) 

 34 

 121 

 1 

1 316 

 253 

 739 

 39 

 116 

 1 

 696 

 260 

 496 

 2 

 (20) 

– 

 (0) 

 (0) 

 (1) 

 (4) 

 (31) 

 (12) 

 (10) 

 (2) 

 (10) 

– 

 (1) 

 (1) 

 261 

 253 

– 

 12 

 92 

– 

 12 

 82 

3 672 

3 424 

 144 

 333 

 40 

 214 

 275 

 7 

 31 

 129 

 378 

 35 

 146 

 267 

 4 

 33 

191 

 157 

140 877 

 (3) 

120 773 

47 285 

214 361 

214 518 

 1 

 649 

 540 

1 274 

 21 

 42 

 0 

 10 

 174 

1 863 

 153 

 414 

 63 

 271 

 48 

 13 

 65 

 0 

 0 

 593 

 24 

 19 

 0 

0 

– 

 6 

 225 

 16 

 14 

 3 

 1 

 0 

 1 

 0 

– 

– 

 (1) 

 (0) 

 (0) 

– 

0 

– 

 (0) 

 (14) 

– 

 (1) 

 (0) 

 (0) 

 (0) 

– 

– 

 0 

 2 

1 214 

 30 

– 

 35 

0 

 0 

 8 

 0 

 0 

 639 

 26 

– 

 35 

0 

0 

 4 

 0 

 2 

1 166 

 27 

 19 

 0 

0 

 0 

 9 

 360 

 350 

 221 

 7 

 14 

 3 

 1 

 4 

 2 

 0 

 9 

 13 

 3 

 1 

 4 

 1 

 0 

 14 

 14 

 4 

 1 

 1 

 2 

 0 

 1 

 651 

1 707 

1 301 

 40 

 43 

 0 

 10 

 184 

2 083 

 166 

 427 

 67 

 272 

 49 

 16 

 65 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Heading 

From budget appropriations 

From assigned revenue appropriations 

Commitm. 
carried 
forward 
from 2022 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

Amount 
remaining 
to be 
settled 
5=1+2+3-
4 

Commitm. 
carried 
forward 
from 2022 

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 
2023 

11=5+10 

 194 

 (6) 

 180 

 176 

 192 

 3 

 (0) 

 2 

 2 

 3 

 195 

98 936 

 (427) 

69 765 

38 883 

129 392 

202 144 

 (30) 

126 986 

81 734 

247 365 

376 757 

Actions under prerogatives of 
Commission 
Total Heading 2: Cohesion, 
Resilience and Values 
3  Agricultural Guarantees 

Agricultural Fund for Rural 
Development 

  Maritime and Fisheries 

  Fisheries (SFPA and RFMO) 

  Decentralised agencies 

  Other actions 

  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 

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 

 357 

 (13) 

40 848 

40 834 

 358 

 0 

34 625 

2 573 

 24 

– 

– 

 5 

2 347 

1 327 

– 

 3 

 21 

 (5) 

 (9) 

 (1) 

– 

– 

– 

 (39) 

 (0) 

– 

 (3) 

 (0) 

12 934 

14 397 

33 157 

6 745 

1 106 

 117 

 30 

 4 

 2 

 758 

1 447 

 50 

 57 

 5 

 978 

 116 

 30 

– 

 3 

 529 

 2 

 10 

 57 

 9 

2 692 

 23 

– 

 4 

 4 

2 538 

2 773 

 40 

– 

 18 

 600 

0 

– 

0 

0 

 7 

4 816 

 10 

 0 

0 

41 281 

 (69) 

57 357 

56 964 

41 606 

12 178 

1 063 

 (13) 

 137 

 344 

 (0) 

– 

 157 

 964 

 141 

 988 

 162 

 378 

 0 

1 020 

 13 

 16 

– 

1 637 

 181 

 278 

 312 

0 

– 

3 811 

 (20) 

3 743 

2 585 

4 949 

 197 

 396 

 439 

 316 

 (13) 

 313 

– 

 (7) 

 69 

 53 

 178 

 102 

 50 

 518 

 405 

 312 

 8 

0 

 0 

192 

 (0) 

 (0) 

 (0) 

0 

– 

0 

0 

 (1) 

 (3) 

 (0) 

 (0) 

0 

 (5) 

 (3) 

– 

 (1) 

0 

– 

 (4) 

 (0) 

0 

 (0) 

 286 

 286 

 0 

 358 

2 030 

4 734 

37 891 

 19 

 65 

0 

 1 

0 

0 

 8 

 58 

 607 

0 

 1 

0 

0 

 4 

0 

– 

0 

0 

 9 

5 816 

 125 

10 504 

 9 

 7 

0 

 2 

 7 

0 

 17 

– 

0 

3 299 

 23 

– 

 4 

 4 

2 547 

13 276 

 57 

– 

 18 

6 210 

2 512 

15 871 

57 477 

 2 

 8 

 0 

0 

 48 

 58 

 1 

0 

 0 

 4 

 8 

 20 

0 

 48 

 80 

 3 

0 

 0 

 11 

– 

 161 

0 

– 

2 720 

 13 

1 798 

 278 

 312 

 172 

5 121 

 6 

0 

 0 

 524 

 405 

 312 

4  Asylum, Migration and Integration  

2 250 

  Decentralised agencies 

 18 

 (8) 

– 

1 492 

1 025 

2 709 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Heading 

From budget appropriations 

From assigned revenue appropriations 

Commitm. 
carried 
forward 
from 2022 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

Amount 
remaining 
to be 
settled 
5=1+2+3-
4 

Commitm. 
carried 
forward 
from 2022 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

6 

7 

8 

9 

Amount 
remaining 
to be 
settled 
10=6+7+
8-9 

  Decentralised agencies 

  Pilot projects and prep. actions 
Actions under prerogatives of 
Commission 

  European Defence (Research) 

  European Defence (Non Research) 

  Military Mobility 

Defence Industrial Reinforcement 
instrument 

  Pilot projects and prep. actions 

  Union Secure Connectivity 

6 

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) 
Total Heading 6: Neighbourhood 
and the World 
7  Staff Pensions 

(Pensions former Members) EP 

(Pensions former Members) ECC 
(Pensions former Members) 
Commission 

– 

 1 

 25 

 479 

1 024 

 343 

– 

 2 

– 

– 

– 

 (2) 

 (0) 

 (0) 

 (0) 

– 

– 

– 

 231 

 231 

– 

 22 

 319 

 626 

 295 

 157 

– 

 30 

– 

 19 

 167 

 360 

 263 

– 

 1 

– 

– 

 1 

 26 

 631 

1 290 

 376 

 157 

 0 

 30 

– 

0 

 0 

 12 

 16 

0 

0 

0 

0 

3 025 

 (22) 

2 116 

1 372 

3 748 

 36 

27 423 

(1 229) 

13 290 

9 142 

30 342 

 206 

 139 

1 113 

 116 

 107 

 16 

 1 

 148 

 (7) 

 (1) 

 (4) 

 (1) 

 (1) 

 (1) 

 (3) 

 45 

 40 

 137 

2 408 

2 473 

1 047 

 372 

 390 

 71 

 65 

– 

 93 

 48 

 52 

 0 

 85 

 94 

 129 

 28 

 0 

 152 

7 213 

 (86) 

2 530 

2 242 

7 415 

36 275 

(1 332) 

18 874 

14 473 

39 345 

– 

– 

– 

– 

– 

– 

– 

– 

2 347 

2 347 

 14 

 1 

 8 

 14 

 1 

 8 

193 

– 

– 

– 

– 

 3 

 15 

 20 

0 

– 

0 

 0 

 442 

 687 

 0 

0 

0 

0 

– 

0 

– 

– 

– 

0 

0 

0 

0 

 (0) 

 (5) 

– 

 (0) 

 (0) 

0 

– 

0 

– 

 (5) 

 (10) 

 (0) 

0 

0 

0 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
2023 

11=5+10 

– 

 1 

 26 

 646 

1 323 

 376 

 157 

 0 

 30 

 6 

0 

 0 

 9 

 17 

0 

0 

0 

0 

 6 

0 

 0 

 6 

 0 

0 

0 

0 

0 

– 

0 

 0 

 15 

 33 

0 

0 

0 

0 

 33 

 14 

 55 

3 803 

 658 

 518 

 340 

30 682 

 1 

 26 

 13 

0 

 1 

0 

 0 

 26 

 724 

 259 

0 

0 

0 

 0 

 26 

 19 

0 

 1 

0 

 0 

 194 

 758 

 259 

0 

0 

0 

 4 

 15 

 13 

0 

– 

0 

 0 

 269 

 642 

– 

0 

0 

0 

 140 

1 063 

 108 

 129 

 28 

 0 

 153 

7 684 

39 987 

– 

– 

– 

– 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Heading 

From budget appropriations 

From assigned revenue appropriations 

Commitm. 
carried 
forward 
from 2022 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

Amount 
remaining 
to be 
settled 
5=1+2+3-
4 

Commitm. 
carried 
forward 
from 2022 

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 
2023 

11=5+10 

(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 

– 

– 

– 

– 

 0 

 0 

 42 

 0 

– 

 3 

– 

 9 

 9 

Information and comm. technology 

 126 

  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 

 0 

 60 

 26 

 11 

 7 

 0 

 6 

 2 

 3 

 14 

 4 

 5 

– 

– 

– 

– 

– 

 (1) 

 (5) 

 (0) 

– 

 (1) 

– 

 (1) 

 (0) 

 (1) 

 (0) 

 (3) 

 (1) 

 (3) 

 (4) 

 (0) 

 (0) 

 (0) 

 (0) 

 (0) 

 (0) 

 (0) 

– 

– 

– 

– 

 0 

 0 

 32 

 0 

– 

 2 

– 

 8 

 7 

0 

0 

0 

0 

 1 

– 

 1 

– 

0 

 0 

0 

 1 

 8 

 129 

 29 

 5 

 57 

 32 

 11 

 6 

 1 

 5 

 2 

 5 

 11 

 2 

 4 

 2 

 9 

 7 

 0 

 0 

0 

 1 

 0 

 0 

 2 

 2 

 4 

 14 

 14 

 6 

 0 

 0 

 233 

2 732 

 252 

 16 

 0 

 28 

 8 

 17 

 22 

 278 

 323 

 123 

 63 

 56 

 14 

 3 

 11 

 6 

 6 

 19 

 33 

 17 

 6 

 0 

 0 

 233 

2 731 

 257 

 16 

 0 

 29 

 8 

 18 

 23 

 273 

 319 

 122 

 56 

 53 

 11 

 2 

 12 

 6 

 4 

 22 

 35 

 17 

194 

0 

0 

0 

0 

– 

– 

 (1) 

– 

0 

 (0) 

0 

 (0) 

 (1) 

 (0) 

– 

 (0) 

 (0) 

 (0) 

 (0) 

0 

 (0) 

 (0) 

– 

 (0) 

 (0) 

 (0) 

0 

0 

0 

0 

 23 

 55 

 37 

 0 

0 

 1 

0 

 4 

 15 

 89 

 25 

 12 

 8 

 2 

 1 

0 

 4 

 0 

 0 

 7 

 37 

 19 

0 

0 

0 

0 

 23 

 55 

 36 

 0 

0 

 1 

0 

 3 

 16 

 76 

 24 

 15 

 10 

 2 

 1 

0 

 3 

 0 

 0 

 7 

 38 

 17 

0 

0 

0 

0 

 1 

– 

 1 

– 

0 

 0 

0 

 3 

 6 

 42 

 2 

 6 

 6 

 0 

 1 

0 

 2 

 0 

 0 

 1 

 1 

 6 

– 

– 

– 

– 

 1 

 0 

 33 

 0 

– 

 2 

– 

 11 

 13 

 172 

 7 

 63 

 38 

 11 

 7 

 1 

 6 

 2 

 5 

 12 

 2 

 10 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

From budget appropriations 

From assigned revenue appropriations 

Commitm. 
carried 
forward 
from 2022 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

1 

2 

3 

4 

 0 

 (0) 

– 

– 

 603 

 (10) 

4 650 

4 676 

 929 

 (31) 

11 300 

11 313 

0 

0 

0 

– 

 0 

– 

 0 

0 

0 

0 

– 

– 

– 

– 

– 

– 

– 

 950 

 950 

 (0) 

 8 

 8 

– 

1 363 

1 043 

 321 

 (0) 

2 322 

2 001 

 321 

Amount 
remaining 
to be 
settled 
5=1+2+3-
4 

Commitm. 
carried 
forward 
from 2022 

Adjust- 
ments 

Commitm. 
made 

Payments 
made 

6 

7 

8 

9 

Amount 
remaining 
to be 
settled 
10=6+7+
8-9 

– 

 567 

 886 

– 

– 

– 

– 

 0 

0 

 51 

 119 

3 068 

 3 

3 071 

– 

0 

– 

– 

0 

0 

0 

 (53) 

 406 

 363 

 (57) 

 (81) 

 (2) 

 (83) 

– 

0 

– 

– 

1 003 

3 626 

 59 

3 685 

– 

0 

 161 

 161 

 947 

 169 

 56 

 226 

– 

0 

– 

– 

0 

 42 

 118 

6 443 

 4 

6 447 

– 

0 

 161 

 161 

EUR million 

Total 
commitm. 
outstanding 
at the end of 
2023 

11=5+10 

– 

 608 

1 004 

6 443 

 4 

6 447 

– 

 0 

 482 

 482 

Heading 

  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 

226 800 

(2 577) 

187 069 

147 727 

263 564 

226 021 

 (343) 

145 221 

91 459  279 439 

543 003 

195 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 IMPLEMENTATION OF THE BUDGET BY INSTITUTION 

Annual accounts of the European Union 2023 

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 

 193 

 67 

 193 

 67 

 255 

 100 

 12 

 3 

 268 

 102 

 253 

 99 

 2 

 2 

 255 

 101 

 132 % 

 151 % 

 13 

 1 

Commission 

Court of Justice 

Court of Auditors 

Economic and Social Committee 

Committee of the Regions 

Ombudsman 

European Data Protection Supervisor 

European External Action Service 

168 210 

164 764 

243 340 

23 451 

266 791 

237 468 

10 042 

247 510 

 150 % 

19 281 

 67 

 28 

 15 

 12 

 2 

 2 

 53 

 67 

 28 

 15 

 12 

 2 

 2 

 53 

 68 

 27 

 21 

 14 

 2 

 2 

 360 

 0 

 0 

 0 

 0 

 0 

 0 

 1 

 68 

 27 

 21 

 14 

 2 

 2 

 68 

 27 

 21 

 14 

 2 

 2 

 361 

 360 

 0 

 0 

 0 

 0 

 0 

 0 

 1 

 68 

 27 

 21 

 14 

 2 

 2 

 102 % 

 98 % 

 140 % 

 115 % 

 100 % 

 94 % 

 361 

 675 % 

 0 

 0 

 0 

 0 

– 

– 

 0 

Total 

168 649 

165 203 

244 189 

23 467 

267 656 

238 313 

10 048 

248 361 

150 % 

19 295 

The  consolidated  reports  on  the  implementation  of  the  general  budget  of  the  EU  include,  as  in  previous  years,  the  budget  implementation  of  all  Institutions 
since within the EU budget a separate budget for each Institution is established.  

The budget and implementation of Agencies are not consolidated within the EU budget and are not included in the EU budget reports. The Commission subsidy 
paid to the agencies however is part of the EU budget. In this budgetary part of the annual accounts, only the subsidy paid from the Commission budget to the 
Agencies is taken into consideration. 

Concerning the EEAS, it should be noted that, in addition to its own budget, it also receives contributions from the Commission of EUR 240.5 million (2022: 
EUR  221.7  million)  and  the  EDF  legacy  and  the  Trust  Funds  of  EUR  18.7  million  (2022:  EUR  19.6  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. 

196 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
7.2.  IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Annual accounts of the European Union 2023 

EUR million 

Institution 

Total 
appropriat. 
available 

Commitments made 

from final 
adopted 
budget 

from 
carry-
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over to 
2024 
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 

2 343 

2 238 

European Council 
and Council 

 709 

 629 

0 

0 

 59 

2 297 

 98 % 

 30 

 659 

 93 % 

0 

0 

 37 

 31 

 37 

 31 

 9 

 19 

0 

0 

 0 

 0 

 9 

 19 

Commission 

338 896 

179 713 

2 705 

144 815 

327 233 

 97 % 

 807 

9 306 

10 113 

1 267 

 15 

 268 

1 550 

Court of Justice 

Court of Auditors 

Economic and Social 
Committee 
Committee of 
Regions 

Ombudsman 

European Data-
protection 
Supervisor 
European External 
Action Service 

 488 

 176 

 165 

 482 

 171 

 157 

 119 

 117 

 13 

 23 

 13 

 22 

1 198 

 821 

0 

 1 

0 

0 

0 

0 

0 

 1 

 0 

 4 

 2 

– 

– 

 483 

 99 % 

 172 

 98 % 

 161 

 97 % 

 118 

 99 % 

 13 

 95 % 

 22 

 96 % 

0 

 0 

0 

0 

0 

0 

 1 

 0 

 2 

 1 

– 

– 

 1 

 0 

 2 

 1 

– 

– 

 310 

1 132 

 94 % 

 1 

 66 

 67 

 4 

 3 

 2 

 0 

 1 

 1 

 0 

0 

 0 

0 

0 

0 

0 

0 

 0 

 0 

 0 

 0 

– 

 0 

– 

 4 

 3 

 2 

 0 

 1 

 1 

 0 

Total 

344 131  184 363 

2 706  145 221  332 290 

97 % 

 808 

9 444 

10 252 

1 306 

 15 

 268 

1 589 

197 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7.3.  IMPLEMENTATION OF PAYMENT APPROPRIATIONS  

Annual accounts of the European Union 2023 

Institution 

Total 
approp. 
available 

from 
final 
adopted 
budget 

Payments made 

from 
carry- 
overs 

from 
assigned 
revenue 

Total 

% 

Appropriations carried over to 
2024 

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 

2 726 

1 890 

 352 

 61 

2 303 

 84 % 

 348 

European Council and 
Council 

 789 

 543 

 71 

 30 

 645 

 82 % 

 86 

 44 

 33 

 393 

 118 

 9 

 19 

Commission 

259 851 

157 909 

1 854 

74 384 

234 147 

 90 % 

2 447 

23 013 

25 460 

 158 

Court of Justice 

Court of Auditors 

Economic and Social 
Committee 

 525 

 183 

 452 

 162 

 181 

 144 

Committee of Regions 

 132 

 106 

Ombudsman 

European Data-
protection Supervisor 

European External 
Action Service 

 14 

 25 

 12 

 19 

 32 

 7 

 13 

 11 

 0 

 1 

 0 

 0 

 3 

 1 

– 

– 

 484 

 92 % 

 169 

 92 % 

 160 

 89 % 

 118 

 90 % 

 13 

 92 % 

 21 

 84 % 

 31 

 10 

 13 

 10 

 0 

 3 

 1 

 0 

 4 

 1 

– 

– 

 32 

 10 

 16 

 12 

 0 

 3 

 20 

 6 

 71 

 5 

 1 

 2 

 2 

 0 

 0 

 11 

 2 

– 

 31 

 25 

 15 

 243 

– 

– 

– 

 0 

– 

 0 

– 

 9 

 5 

 4 

 2 

 1 

 1 

 11 

 4 

 3 

 2 

 0 

 1 

 1 

 0 

1 315 

 755 

 106 

 266 

1 126 

 86 % 

 67 

 110 

 177 

Total 

265 740  161 992 

2 447 

74 747  239 186 

90 % 

3 014 

23 207 

26 221 

 197 

 119 

 17 

 333 

198 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

 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 
Total 

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 

 30 
 294 
 8 
 22 
 17 
 170 
 234 
 52 
 829 
 90 
 20 
 124 
 62 
 67 
 99 
 30 
 149 
 24 
 50 
 48 
 9 
 361 
 36 
 30 
 90 
 449 
 22 
 66 
 62 
 103 
 72 
 29 
 75 
 25 
 213 
 11 
 38 
 77 
 26 
 456 
 413 
 49 
5 128 

 30 
 316 
 8 
 20 
 17 
 188 
 190 
 53 
 847 
 95 
 20 
 124 
 63 
 65 
 81 
 31 
 150 
 25 
 50 
 48 
 9 
 382 
 37 
 28 
 112 
 462 
 22 
 66 
 62 
 103 
 72 
 28 
 75 
 37 
 217 
 15 
 40 
1 482 
 26 
 322 
 554 
 43 
6 615 

199 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Type of agencies revenue 

Commission subsidy 
Fee income 
Other income 
Total 

  EUR million 
Amounts 
received 

4 734 
 898 
 983 
6 615 

8.2.  COMMITMENT AND PAYMENT APPROPRIATIONS BY

AGENCY 

EUR million 

Commitment 
appropriations 

Total 
appropr. 
available 

Commit. 
made 

Payment 
appropriations 
Total 
appropr. 
available 

Payments 
made 

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 

 30 

 368 

 8 

 27 

 18 

 214 

 313 

 54 

 861 

 102 

 20 

 126 

 62 

 65 

 91 

 35 

 29 

 295 

 8 

 25 

 17 

 166 

 218 

 52 

 837 

 92 

 20 

 121 

 62 

 65 

 82 

 33 

 158 

 156 

 26 

 50 

 48 

 10 

 460 

 37 

 40 

 126 

 486 

 23 

 66 

 62 

 25 

 50 

 48 

 9 

 452 

 37 

 37 

 115 

 468 

 21 

 66 

 62 

 37 

 389 

 9 

 22 

 22 

 228 

 328 

 60 

1 205 

 128 

 21 

 143 

 66 

 70 

 110 

 48 

 164 

 31 

 53 

 52 

 11 

 377 

 40 

 39 

 138 

 583 

 24 

 77 

 65 

European Research Executive Agency 

 103 

 101 

 108 

European Securities and Markets Authority 

European Training Foundation 

European Union Agency for Criminal Justice Cooperation 

European Union Agency for Cybersecurity 

 74 

 30 

 79 

 25 

 73 

 27 

 61 

 25 

 80 

 31 

 88 

 44 

200 

 28 

 294 

 8 

 19 

 16 

 166 

 197 

 55 

 765 

 90 

 20 

 123 

 62 

 63 

 76 

 36 

 149 

 25 

 50 

 47 

 9 

 344 

 37 

 31 

 113 

 474 

 21 

 66 

 62 

 99 

 72 

 25 

 64 

 40 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

Agency 

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 

 223 

 26 

 52 

3 588 

 27 

 514 

 807 

 49 

 217 

 19 

 42 

 918 

 27 

 347 

 586 

 43 

 256 

 29 

 44 

 221 

 18 

 39 

2 370 

1 538 

 34 

 514 

 632 

 51 

 27 

 342 

 598 

 43 

Total 

9 582 

6 154 

8 822 

6 572 

Type of expenditure 

Administrative 

Operational 

Staff 

Total 

  EUR million 

Commitment 
appropriations 

Payment appropriations 

Total appropr. 
available 

Commit. 
made 

Total appropr. 
available 

Payments 
made 

 561 

6 978 

2 044 

 529 

3 723 

1 903 

 685 

6 063 

2 074 

 519 

4 154 

1 898 

9 582 

6 154 

8 822 

6 572 

201 

 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Union 2023 

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. 

202 

 
 
 
Available for sale financial assets 

Annual accounts of the European Union 2023 

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 
agreements/decisions) that could be signed in the current financial year. 

cost  of 

total 

the 

legal  obligations 

(contracts,  grant 

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. 

203 

 
Effective interest rate 

Annual accounts of the European Union 2023 

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 amortised cost 

All  financial  assets  and  liabilities  that  are  according  to  International  Public  Sector  Accounting  Standards 
measured at armotised 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. 

204 

 
Own resources 

Annual accounts of the European Union 2023 

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. 

205 

 
 
Annual accounts of the European Union 2023 

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 

BAR 

BOP 

Air Traffic Management 

Brexit adjustment reserve 

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 

206 

 
 
 
Annual accounts of the European Union 2023 

ECA 

ECB  

ECL 

European Court of Auditors 

European Central Bank 

Expected Credit Losses 

ECOFIN 

Economic and Financial Affairs Council 

ECSC i.L.  

European Coal and Steel Community in Liquidation 

EDF 

EDIF 

EEA 

EEAS 

EFSD 

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  

EIB Resilience Initiative 

European Space Agency 

European Social Fund 

ESIF  

European Structural and Investment Funds 

207 

 
Annual accounts of the European Union 2023 

ESM  

European Stability Mechanism 

ETF  

ETS 

EU  

Exchange-Traded Fund 

Emissions trading scheme 

European Union 

EUMETSAT  

European Organisation for the Exploitation of Meteorological Satellites 

Euratom 

European Atomic Energy Community 

EUSF 

European Union solidarity Fund 

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 

IBMF 

Integrated Border Management Fund 

IF 

IIW 

IMF  

Innovation Fund 

Infrastructure and Innovation Window 

International Monetary Fund 

IPSAS 

International Public Sector Accounting Standards 

IT  

Information Technology 

ITER  

International Thermonuclear Experimental Reactor 

JRC  

JSIS 

JU  

LGD 

LGF 

Joint Research Centre 

Joint sickness insurance scheme 

Joint Undertaking 

Loss given Default Rate 

Loan Guarantee Facility 

208 

 
 
LGTT  

Loan Guarantee Instrument for TEN-T projects 

Annual accounts of the European Union 2023 

MAP  

MEP  

MFA  

MFF  

MIM 

MMF 

Multi Annual Program - Medium Enterprise Financial Inclusion Programme 

Member of the European Parliament 

Macro Financial Assistance 

Multiannual Financial Framework 

Mutual Insurance mechanism 

Money Market Fund 

MSME 

Micro, Small and Medium Enterprise 

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  

POCI 

PPP  

Participants Guarantee Fund 

Purchased or originated as credit impaired 

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) 

209 

 
Annual accounts of the European Union 2023 

STEP 

SURE 

Strategic technologies for Europe platform 

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