Explanatory Memorandum to COM(2017)622 - European Development Fund (EDF): forecasts of commitments, payments and contributions from Member States for 2017, 2018, 2019 and non-binding forecast for the years 2020-2021

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dossier COM(2017)622 - European Development Fund (EDF): forecasts of commitments, payments and contributions from Member States for 2017, 2018, ...
source COM(2017)622 EN
date 25-10-2017
EUROPEAN COMMISSION

Contents

1.

Brussels, 25.10.2017


COM(2017) 622 final

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL

European Development Fund (EDF): forecasts of commitments, payments and contributions from Member States for 2017, 2018, 2019 and non-binding forecast for the years 2020-2021


1. Foreword

In accordance with Article 7(1) of the 11th EDF Internal Agreement 1 and Article 21(2) of the Council Regulation (EU) 2015/323 2 on the Financial Regulation applicable to the 11th European Development Fund (hereinafter referred to as '11th EDF Financial Regulation'), the Commission presents in this document estimates of commitments, payments and contributions for the period 2017 to 2019, taking into account the forecasts of the European Investment Bank (EIB).

This document sets out the financial implementation forecasts of the EDFs (Eighth to 11th) for 2017 until 2019. In addition, this document draws a non-binding estimation, for the EDF contributions from the Member States, for the years 2020 and 2021.

Member States contribute funds directly to the European Investment Bank (EIB) for the instruments which it manages under the Ninth, 10th, and 11th EDFs (the Investment Facility and interest-rate subsidies).

2. Introduction

The Commission and the EIB have updated their commitment and payment forecasts for 2017, 2018 and 2019 for each of the ACP countries 3 and the OCTs 4 . The payment forecasts in particular have been compiled with the aim of helping Member States to assess as accurately as possible the amounts they need to earmark in their national budgets while ensuring that sufficient financial resources are available for the EDF to avoid liquidity problems.

In accordance with Article 7 of the 11th EDF Internal Agreement 5 and Article 21(2) of the 11th EDF Financial Regulation 6 , the estimates of commitments and payments have been updated following the latest forecasts.

The graph below shows the general evolution in gross commitments and payments since 1999 until 2016 and projections for the period 2017-2019 (Commission and EIB cumulated amounts).


2.

Gross commitments and payments: trend 1999-2019 (EUR Million)



Note: Figures from implementation of the European Development Funds until 31 December 2016 (commitments and payments) and forecasts for 2017-2019.

3. Financial forecasts for 2017 - 2019 (EUR Million)

The following table provides an update of the commitments, the payments and of the contributions, based on the Commission's latest forecasts.

Forecasts 2017-2019 (*)201720182019
CommitmentsCommission6 510 5 550 4 855
EIB790 880 930
Total7 300 6 430 5 785
PaymentsCommission4 304 4 600 4 600
EIB520 555 580
Total4 824 5 155 5 180
ContributionsCommission3 850 4 550 4 600
EIB150 250**300
Total4 000 4 800 4 900

* Gross amounts, i.e. no decommitments or recoveries/reflows have been deducted. This approach is in line with that used for the general budget of the Union.
** ref. EIB explanatory note for information of 17/11/2015, MD no: 151/15 ADD 1 ACP

4. Non-binding Estimates of contributions for 2020 - 2021 (EUR Million)

Forecasts 2020-2021 (*)20202021
ContributionsCommission4 600 4 700
EIB300 300
Total4 900 5 000

* Art.21 (2) 11th EDF Financial Regulation (EU 2015/323): indicative, non-binding forecast based on a statistical approach for the expected annual amounts of contributions for the years n + 3 and n + 4.

5. Financial implementation forecasts for 2017, 2018 and 2019.

The updated forecasts are set out in attachments 1 to 3.

The estimates for 2017 commitments and payments that were indicated in the June 2017 Communication have been revised upwards, based on the last forecasts.

In 2017, record EDF payments are expected along with a high level of commitments. This would keep the 11th EDF on track for full commitment at the end of the implementation period.

However, coming as it does after a record of payment performance in 2016, the expected record payment performance in 2017 will add further pressure upon an already tight treasury, for the period 2017-2019, as shown in attachment 3 (with a negative or near-zero balance at year end for the Commission).

Now that the 11th EDF has reached cruising speed, there is less volatility in long-term payment forecasts. It is therefore easier for the Commission to propose a smoother profile for Member States' contributions from 2018 and onwards. This smoothing out of contributions ("lissage") is a key request from Member States.


Attachments 1, 2 and 3 show respectively forecasts of commitments, forecasts of payments and the financial situation compared with previous forecasts for the period 2017-2019.

Attachments 4 and 5 show respectively contributions for 2017 and for 2018 per instalment and per Member State.

Attachment 6 shows the yearly contributions for the period 2017-2021 per Member State.

5.1.Attachment 1: forecasts for commitments 7 for 2017, 2018 and 2019 (EUR million)

201720182019
Communication June 2017Communication October 2017Communication June 2017Communication October 2017Communication October 2017
Regions
East and Southern Africa1 5281 661
West and Central Africa1 9432 237
Latin America and Caribbean352280
Pacific230191
Sub-total*4 0524 369
Other
Peace Facility, Human rights427401
EU-Africa, African Peace Facility430437
Planet and Prosperity367814
Resources, Evaluation, process187337
DG ECHO, EACEA, DG EAC166152
Sub-total*1 5762 142
Total European Commission*5 6296 5104 5505 5504 855
Investment facility775700800800850
Interest rate subsidies (**)8090808080
Total EIB*855790880880930
TOTAL European Commission + EIB*6 4847 3005 4306 4305 785

* Due to the rounding effects, the sum of individual rounded amounts shown may differ slightly from the corresponding totals

** Including interest rate subsidies under previous EDFs

5.2.Attachment 2: forecasts for payments 8 for 2017, 2018 and 2019 (EUR million)

201720182019
Communication June 2017Communication October 2017Communication June 2017Communication October 2017Communication October 2017
Regions
East and Southern Africa1 2291 188
West and Central Africa1 6061 604
Latin America and Caribbean199177
Pacific11395
Sub-total*3 1483 064
Other
Peace Facility, Human rights146188
EU-Africa, African Peace Facility344362
Planet and Prosperity105242
Resources, Evaluation, process142274
DG ECHO, EACEA, DG EAC179173
Sub-total*9161 240
Total European Commission*4 0644 3044 6004 6004 600
Investment facility500500525525550
Interest rate subsidies (**)4020403030
Total EIB*540520565555580
TOTAL European Commission + EIB*4 6044 8245 1655 1555 180

* Due to the rounding effects, the sum of individual rounded amounts shown may differ slightly from the corresponding totals

** Including interest rate subsidies under previous EDFs

5.3.Attachment 3: Financial situation, forecasts for 2017-2019 and non-binding estimations for 2020 - 2021 (EUR million):

Communication June 2017 1Communication October 2017
CommissionEIB 5TOTALCommissionEIB 5TOTAL
Balance 31/12/2016 15614060156140601
2017Member States Contributions for 2017:3 8501504 0003 8501504 000
1st instalment1 7001001 8001 7001001 800
2nd instalment1 300501 3501 300501 350
3rd instalment85008508500850
Reflows 2350350300300
Contrib. & Adjust. 2017 received in 2016-261-261-261-261
Recoveries, interest and other incomes50506464
Total payments 3-4 064-540-4 604-4 304-520-4 824
Balance at 31/12/2017 61360136-90-30-120
2018Member States Contributions for 2018:4 5502504 8004 5502504 800
1st instalment02 0501502 200
2nd instalment01 5001001 600
3rd instalment01 00001 000
Reflows 2350350350350
Recoveries, interest and other80808080
Total payments 3-4 600-565-5 165-4 600-555-5 155
Balance at 31/12/2018 716635201-6015-45
2019Member States Contributions for 2019:4 5004004 9004 6003004 900
Reflows 20350350
Recoveries, interest and other08080
Total payments 30-4 600-580-5 165
Balance at 31/12/20195 1012085120
2020Member States Contributions for 2020 44 5004004 9004 6003004 900
2021Member States Contributions for 2021 44 7003005 000

1 Funds available for operations as per Communication from the Commission to the Council;
2 Net of EIB management fees;
3 Including interest rates subsidies under the previous EDFs;
4 Art.21(2)(d) Financial Regulation: non-binding forecast based on a statistical approach for the expected annual contributions for the years n + 3 and n + 4;
5 Art.21(1), calls for contributions shall first use up the amounts laid down for previous EDFs, one after the other. Therefore calls under the 11th EDF to finance the IFE are further delayed.

6-7 The EDF treasury balance can never be negative. Any negative amounts in the table indicates a shortage of payment credits.

5.4.Attachment 4: Member States contributions for 2017 (EUR)

MEMBER STATESKey 10th EDF %Key 11th EDF %1st instalment2nd instalment3rd instalmentTotal EIBTotal
Commission
Total 2017
EIBCommissionEIBCommissionCommissionEIBCommission
10th EDF10th EDF10th EDF10th EDF11th EDF10th EDF11th EDF
BELGIUM3.533.249273 530 000.0060 010 000.001 765 000.002 586 394.3939 859 803.570.0027 618 795.005 295 000.00130 074 992.96135 369 992.96
BULGARIA0.140.21853140 000.002 380 000.0070 000.00102 576.552 680 775.340.001 857 505.00210 000.007 020 856.887 230 856.88
CZECH REPUBLIC0.510.79745510 000.008 670 000.00255 000.00373 671.719 782 566.650.006 778 325.00765 000.0025 604 563.3726 369 563.37
DENMARK2.001.980452 000 000.0034 000 000.001 000 000.001 465 379.2624 294 794.820.0016 833 825.003 000 000.0076 593 999.0879 593 999.08
GERMANY20.5020.5798020 500 000.00348 500 000.0010 250 000.0015 020 137.42252 458 793.950.00174 928 300.0030 750 000.00790 907 231.37821 657 231.37
ESTONIA0.050.0863550 000.00850 000.0025 000.0036 634.481 059 282.250.00733 975.0075 000.002 679 891.732 754 891.73
IRELAND0.910.94006910 000.0015 470 000.00455 000.00666 747.5611 532 007.790.007 990 510.001 365 000.0035 659 265.3537 024 265.35
GREECE1.471.507351 470 000.0024 990 000.00735 000.001 077 053.7618 491 130.290.0012 812 475.002 205 000.0057 370 659.0459 575 659.04
SPAIN7.857.932487 850 000.00133 450 000.003 925 000.005 751 613.6097 310 194.160.0067 426 080.0011 775 000.00303 937 887.76315 712 887.76
FRANCE19.5517.8126919 550 000.00332 350 000.009 775 000.0014 324 082.27218 513 796.750.00151 407 865.0029 325 000.00716 595 744.02745 920 744.02
CROATIA0.000.225180.000.000.000.002 762 352.950.001 914 030.000.004 676 382.954 676 382.95
ITALY12.8612.5300912 860 000.00218 620 000.006 430 000.009 422 388.64153 710 502.990.00106 505 765.0019 290 000.00488 258 656.64507 548 656.64
CYPRUS0.090.1116290 000.001 530 000.0045 000.0065 942.071 369 277.180.00948 770.00135 000.003 913 989.254 048 989.25
LATVIA0.070.1161270 000.001 190 000.0035 000.0051 288.271 424 480.080.00987 020.00105 000.003 652 788.353 757 788.35
LITHUANIA0.120.18077120 000.002 040 000.0060 000.0087 922.762 217 561.700.001 536 545.00180 000.005 882 029.456 062 029.45
LUXEMBOURG0.270.25509270 000.004 590 000.00135 000.00197 826.203 129 268.200.002 168 265.00405 000.0010 085 359.4010 490 359.40
HUNGARY0.550.61456550 000.009 350 000.00275 000.00402 979.307 538 998.260.005 223 760.00825 000.0022 515 737.5623 340 737.56
MALTA0.030.0380130 000.00510 000.0015 000.0021 980.69466 280.470.00323 085.0045 000.001 321 346.161 366 346.16
NETHERLANDS4.854.776784 850 000.0082 450 000.002 425 000.003 553 544.7158 598 242.830.0040 602 630.007 275 000.00185 204 417.53192 479 417.53
AUSTRIA2.412.397572 410 000.0040 970 000.001 205 000.001 765 782.0129 411 735.320.0020 379 345.003 615 000.0092 526 862.3396 141 862.33
POLAND1.302.007341 300 000.0022 100 000.00650 000.00952 496.5224 624 662.800.0017 062 390.001 950 000.0064 739 549.3266 689 549.32
PORTUGAL1.151.196791 150 000.0019 550 000.00575 000.00842 593.0714 681 394.380.0010 172 715.001 725 000.0045 246 702.4546 971 702.45
ROMANIA0.370.71815370 000.006 290 000.00185 000.00271 095.168 809 768.940.006 104 275.00555 000.0021 475 139.1122 030 139.11
SLOVENIA0.180.22452180 000.003 060 000.0090 000.00131 884.132 754 256.520.001 908 420.00270 000.007 854 560.668 124 560.66
SLOVAKIA0.210.37616210 000.003 570 000.00105 000.00153 864.824 614 471.470.003 197 360.00315 000.0011 535 696.2911 850 696.29
FINLAND1.471.509091 470 000.0024 990 000.00735 000.001 077 053.7618 512 475.410.0012 827 265.002 205 000.0057 406 794.1659 611 794.16
SWEDEN2.742.939112 740 000.0046 580 000.001 370 000.002 007 569.5936 054 974.580.0024 982 435.004 110 000.00109 624 979.17113 734 979.17
UNITED KINGDOM14.8214.6786214 820 000.00251 940 000.007 410 000.0010 858 460.32180 067 187.340.00124 768 270.0022 230 000.00567 633 917.66589 863 917.66
TOTAL EU-28100.00100.00100 000 000.001 700 000 000.0050 000 000.0073 268 963.001 226 731 037.000.00850 000 000.00150 000 000.003 850 000 000.004 000 000 000.00

5.5.Attachment 5: Member States contributions for 2018 (EUR)

MEMBER STATESKey 10th EDF %Key 11th EDF %1st instalment2nd instalment3rd instalmentTotal EIBTotal
Commission
Total 2018
EIBCommissionEIBCommissionEIBCommission
10th EDF11th EDF10th EDF11th EDF10th EDF11th EDF
BELGIUM3.533.249275 295 000.0066 610 035.003 530 000.0048 739 050.000.0032 492 700.008 825 000.00147 841 785.00156 666 785.00
BULGARIA0.140.21853210 000.004 479 865.00140 000.003 277 950.000.002 185 300.00350 000.009 943 115.0010 293 115.00
CZECH REPUBLIC0.510.79745765 000.0016 347 725.00510 000.0011 961 750.000.007 974 500.001 275 000.0036 283 975.0037 558 975.00
DENMARK2.001.980453 000 000.0040 599 225.002 000 000.0029 706 750.000.0019 804 500.005 000 000.0090 110 475.0095 110 475.00
GERMANY20.5020.5798030 750 000.00421 885 900.0020 500 000.00308 697 000.000.00205 798 000.0051 250 000.00936 380 900.00987 630 900.00
ESTONIA0.050.0863575 000.001 770 175.0050 000.001 295 250.000.00863 500.00125 000.003 928 925.004 053 925.00
IRELAND0.910.940061 365 000.0019 271 230.00910 000.0014 100 900.000.009 400 600.002 275 000.0042 772 730.0045 047 730.00
GREECE1.471.507352 205 000.0030 900 675.001 470 000.0022 610 250.000.0015 073 500.003 675 000.0068 584 425.0072 259 425.00
SPAIN7.857.9324811 775 000.00162 615 840.007 850 000.00118 987 200.000.0079 324 800.0019 625 000.00360 927 840.00380 552 840.00
FRANCE19.5517.8126929 325 000.00365 160 145.0019 550 000.00267 190 350.000.00178 126 900.0048 875 000.00810 477 395.00859 352 395.00
CROATIA0.000.225180.004 616 190.000.003 377 700.000.002 251 800.000.0010 245 690.0010 245 690.00
ITALY12.8612.5300919 290 000.00256 866 845.0012 860 000.00187 951 350.000.00125 300 900.0032 150 000.00570 119 095.00602 269 095.00
CYPRUS0.090.11162135 000.002 288 210.0090 000.001 674 300.000.001 116 200.00225 000.005 078 710.005 303 710.00
LATVIA0.070.11612105 000.002 380 460.0070 000.001 741 800.000.001 161 200.00175 000.005 283 460.005 458 460.00
LITHUANIA0.120.18077180 000.003 705 785.00120 000.002 711 550.000.001 807 700.00300 000.008 225 035.008 525 035.00
LUXEMBOURG0.270.25509405 000.005 229 345.00270 000.003 826 350.000.002 550 900.00675 000.0011 606 595.0012 281 595.00
HUNGARY0.550.61456825 000.0012 598 480.00550 000.009 218 400.000.006 145 600.001 375 000.0027 962 480.0029 337 480.00
MALTA0.030.0380145 000.00779 205.0030 000.00570 150.000.00380 100.0075 000.001 729 455.001 804 455.00
NETHERLANDS4.854.776787 275 000.0097 923 990.004 850 000.0071 651 700.000.0047 767 800.0012 125 000.00217 343 490.00229 468 490.00
AUSTRIA2.412.397573 615 000.0049 150 185.002 410 000.0035 963 550.000.0023 975 700.006 025 000.00109 089 435.00115 114 435.00
POLAND1.302.007341 950 000.0041 150 470.001 300 000.0030 110 100.000.0020 073 400.003 250 000.0091 333 970.0094 583 970.00
PORTUGAL1.151.196791 725 000.0024 534 195.001 150 000.0017 951 850.000.0011 967 900.002 875 000.0054 453 945.0057 328 945.00
ROMANIA0.370.71815555 000.0014 722 075.00370 000.0010 772 250.000.007 181 500.00925 000.0032 675 825.0033 600 825.00
SLOVENIA0.180.22452270 000.004 602 660.00180 000.003 367 800.000.002 245 200.00450 000.0010 215 660.0010 665 660.00
SLOVAKIA0.210.37616315 000.007 711 280.00210 000.005 642 400.000.003 761 600.00525 000.0017 115 280.0017 640 280.00
FINLAND1.471.509092 205 000.0030 936 345.001 470 000.0022 636 350.000.0015 090 900.003 675 000.0068 663 595.0072 338 595.00
SWEDEN2.742.939114 110 000.0060 251 755.002 740 000.0044 086 650.000.0029 391 100.006 850 000.00133 729 505.00140 579 505.00
UNITED KINGDOM14.8214.6786222 230 000.00300 911 710.0014 820 000.00220 179 300.000.00146 786 200.0037 050 000.00667 877 210.00704 927 210.00
TOTAL EU-28100.00100.00150 000 000.002 050 000 000.00100 000 000.001 500 000 000.000.001 000 000 000.00250 000 000.004 550 000 000.004 800 000 000.00

5.6.Attachment 6: Member States contributions for 2017-2021 (EUR)

MEMBER STATES20172018201920202021
COM 10thCOM 11thEIB 10thCOM 11thEIB 10thCOM 11thEIB 10thCOM 11thEIB 10thCOM 11thEIB 10thEIB 11th
BELGIUM62 596 39467 478 5995 295 000147 841 7858 825 000149 466 42010 590 000149 466 42010 590 000152 715 6902 824 0007 148 394
BULGARIA2 482 5774 538 280210 0009 943 115350 00010 052 380420 00010 052 380420 00010 270 910112 000480 766
CZECH REPUBLIC9 043 67216 560 892765 00036 283 9751 275 00036 682 7001 530 00036 682 7001 530 00037 480 150408 0001 754 390
DENMARK35 465 37941 128 6203 000 00090 110 4755 000 00091 100 7006 000 00091 100 7006 000 00093 081 1501 600 0004 356 990
GERMANY363 520 137427 387 09430 750 000936 380 90051 250 000946 670 80061 500 000946 670 80061 500 000967 250 60016 400 00045 275 560
ESTONIA886 6341 793 25775 0003 928 925125 0003 972 100150 0003 972 100150 0004 058 45040 000189 970
IRELAND16 136 74819 522 5181 365 00042 772 7302 275 00043 242 7602 730 00043 242 7602 730 00044 182 820728 0002 068 132
GREECE26 067 05431 303 6052 205 00068 584 4253 675 00069 338 1004 410 00069 338 1004 410 00070 845 4501 176 0003 316 170
SPAIN139 201 614164 736 27411 775 000360 927 84019 625 000364 894 08023 550 000364 894 08023 550 000372 826 5606 280 00017 451 456
FRANCE346 674 082369 921 66229 325 000810 477 39548 875 000819 383 74058 650 000819 383 74058 650 000837 196 43015 640 00039 187 918
CROATIA04 676 383010 245 690010 358 280010 358 280010 583 4600495 396
ITALY228 042 389260 216 26819 290 000570 119 09532 150 000576 384 14038 580 000576 384 14038 580 000588 914 23010 288 00027 566 198
CYPRUS1 595 9422 318 047135 0005 078 710225 0005 134 520270 0005 134 520270 0005 246 14072 000245 564
LATVIA1 241 2882 411 500105 0005 283 460175 0005 341 520210 0005 341 520210 0005 457 64056 000255 464
LITHUANIA2 127 9233 754 107180 0008 225 035300 0008 315 420360 0008 315 420360 0008 496 19096 000397 694
LUXEMBOURG4 787 8265 297 533405 00011 606 595675 00011 734 140810 00011 734 140810 00011 989 230216 000561 198
HUNGARY9 752 97912 762 758825 00027 962 4801 375 00028 269 7601 650 00028 269 7601 650 00028 884 320440 0001 352 032
MALTA531 981789 36545 0001 729 45575 0001 748 46090 0001 748 46090 0001 786 47024 00083 622
NETHERLANDS86 003 54599 200 8737 275 000217 343 49012 125 000219 731 88014 550 000219 731 88014 550 000224 508 6603 880 00010 508 916
AUSTRIA42 735 78249 791 0803 615 000109 089 4356 025 000110 288 2207 230 000110 288 2207 230 000112 685 7901 928 0005 274 654
POLAND23 052 49741 687 0531 950 00091 333 9703 250 00092 337 6403 900 00092 337 6403 900 00094 344 9801 040 0004 416 148
PORTUGAL20 392 59324 854 1091 725 00054 453 9452 875 00055 052 3403 450 00055 052 3403 450 00056 249 130920 0002 632 938
ROMANIA6 561 09514 914 044555 00032 675 825925 00033 034 9001 110 00033 034 9001 110 00033 753 050296 0001 579 930
SLOVENIA3 191 8844 662 677270 00010 215 660450 00010 327 920540 00010 327 920540 00010 552 440144 000493 944
SLOVAKIA3 723 8657 811 831315 00017 115 280525 00017 303 360630 00017 303 360630 00017 679 520168 000827 552
FINLAND26 067 05431 339 7402 205 00068 663 5953 675 00069 418 1404 410 00069 418 1404 410 00070 927 2301 176 0003 319 998
SWEDEN48 587 57061 037 4104 110 000133 729 5056 850 000135 199 0608 220 000135 199 0608 220 000138 138 1702 192 0006 466 042
UNITED KINGDOM262 798 460304 835 45722 230 000667 877 21037 050 000675 216 52044 460 000675 216 52044 460 000689 895 14011 856 00032 292 964
TOTAL EU-281 773 268 9632 076 731 037150 000 0004 550 000 000250 000 0004 600 000 000300 000 0004 600 000 000300 000 0004 700 000 00080 000 000220 000 000
4 000 000 0004 800 000 0004 900 000 0004 900 000 0005 000 000 000


(1) Internal Agreement between the Representatives of the Governments of the Member States of the European Union, meeting within the Council, on the financing of European Union aid under the multiannual financial framework for the period 2014 to 2020, in accordance with the ACP-EU Partnership Agreement, and on the allocation of financial assistance for the Overseas Countries and Territories to which Part Four of the Treaty on the Functioning of the European Union applies (OJ L 210, 06.08.2013, p. 1-14).
(2) Council Regulation (EU) 2015/323 of 2 March 2015 on the Financial Regulation applicable to the 11th European Development Fund (OJ L 58, 03.03.2015, p. 17–38).
(3) African, Caribbean and Pacific States.
(4) Overseas Countries and Territories.
(5) OJ L 210, 06.08.2013.
(6) OJ L 58, 03.03.2015.
(7) Gross commitments, i.e. without de-commitments being deducted.
(8) Gross payments, i.e. without recoveries being deducted.