Explanatory Memorandum to COM(2007)326 - Financial Information on the European Development Funds - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2007)326 - Financial Information on the European Development Funds. |
|---|---|
| source | COM(2007)326  |
| date | 13-06-2007 |
|
52007DC0326
Communication from the Commission to the Council and the European Parliament - Financial Information on the European Development Funds /* COM/2007/0326 final */
EN
Brussels, 13.6.2007
COM(2007) 326 final
COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT
Financial Information on the European Development Funds
COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT
Financial Information on the European Development Funds
Foreword
This document is to be annexed to the draft budget for 2008, in accordance with the 1979 agreements on budgetary procedure.
Article 8 i of the Financial Regulation of 27 March 2003 applicable to the 9th European Development Fund (EDF) i requires the Commission to make this document available to the Council by 15 June, stipulating that this information serve as the basis for an interim estimate of commitments and payments.
As in previous years, this document sets out:
– implementation of the EDFs (6th to 9th) at 31.12.2006;
– financial implementation forecasts for the current year;
– expenditure forecasts for 2008.
The Member States contribute funds directly to the European Investment Bank (EIB) for the instruments which it manages under the 9th EDF (the Investment Facility and interest-rate subsidies). Contributions for other instruments, including contributions for the old instruments managed by the EIB (risk capital and interest-rate subsidies), go through the Commission.
Unless otherwise indicated, all the commitments and payments listed in this Communication are gross amounts, i.e. no decommitments or recoveries have been deducted. This is in keeping with the approach adopted for the European Union’s general budget.
Contents
- Introduction
- 1. Implementation of the European Development Funds at 31 December 2006
- 1.1. Funds available at 31 December 2006
- 1.2. Implementation of the EDFs in 2006 (commitments and payments)
- 1.3. Calls for contributions in 2006
- 2. Financial implementation forecasts for 2007 and 2008
- 3. Financial situation forecast for 2007 and 2008
- Annex 1: Consolidated situation of the EDFs (6th to 9th) for the ACP countries and OCTs at 31 December 2006 (EUR million)
- Implementation expenditure
- Annex 2
- Commitments Payments Commitments Payments
- 6th to 8th EDFs
- Outside indicative programmes
- EIB (9th EDF)
- Annex 3: Commitments and payments made in 2006 and forecast for 2007 and 2008 (EUR million)
- Annex 3 (cont'd): Payments made in 2006 and forecast for 2007 and 2008 (EUR million)
- Debt relief (HIPC)
- 2005 contributions paid in
- 2006 contributions, of which: 2 2 2 2
- 2007 contributions, of which: 2 2 2 3
- 2008 contributions 3 3
- Annex 5: Contributions to the EDF for 2007 (euro)
- GERMANY 23. 16 352 350 400 44.384. 245 280 10 512 89 936 756 864
The Commission and the EIB have updated their commitment and payment forecasts for 2007 and 2008 for each of the ACP countries i and the OCTs i. The payment forecasts in particular have been compiled with great care with the aim of helping the 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 8 of the Financial Regulation applicable to the 9th EDF i, these forecasts will be adjusted in the October 2007 Communication.
In line with the joint statement made when adopting the Financial Regulation for the 9th EDF, this document consists mainly of tables accompanied by a few explanations to help interpretation.
The graph below shows the general trend in commitments and payments, including projections for 2007-2008 (Commission and EIB): it clearly illustrates the upwards structural trend in payments since 2000.
[afbeelding - zie origineel document]
- - Commitments; ―Payments
Annex 1 gives an overview of the funds available to the Commission and EIB under the EDFs (6th to 9th), commitments and payments at the end of 2006. Of the amount not committed (EUR 3 607 million), EUR 3 163 million fall within the remit of the Commission and will be committed by the end of 2007.
Unlike the figures in the rest of this document, the figures given above and in Annex 1 are “net” figures. They are obtained after deduction of decommitments and recoveries. This is necessary to determine the amount of available funds.
Annex 2 gives a breakdown of commitments and payments by instrument and compares them with the 2005 figures.
Annex 3 shows actual implementation in 2006 compared with the forecasts made in October 2006. The two institutions met their targets. Note that the Commission's objectives had hardly changed since October 2005.
Annex 4 shows the financial situation and projections The table does not include payments made under Stabex or payments for special measures for the Democratic Republic of Congo. This expenditure was made from separate accounts which had already been credited by the Member States.
The cash balance available to the Commission at the end of 2006 was approximately EUR 131 million i, more than expected (EUR 74 million). However, at 31 December 2006, a high volume of payments (some EUR 110 million) had been initiated, against EUR 23 million the year before. And the Commission needed all of this EUR 131 million to cover the period between 1 and 27 January when the first tranche of the 2007 contributions was scheduled.
The new forecasts are set out in Annex 3.
Note that:
2007 payments have been revised markedly upwards for both the Commission and the EIB.
(a) For the Commission the increase is attributable to:
– the beneficial impact of devolution: following the completion of this process in 2005 there was a greater than forecast speeding-up of contract awards in 2006 (20% up on 2005), which led to a greater volume of payments than forecast in 2007;
– the end-of-term review of the 9th EDF and decisions to reassign resources, which should lead to additional payments as early as this year (for the Peace Facility);
– better than expected progress in certain 'risky'countries.
(b) The EIB has also made faster progress than expected. This is because a number of projects approved since 2003 are now becoming operational and there was a marked increase in the loans agreed in 2006, especially for the private sector.
Since 2008 will see the start to implementation of a new EDF the forecasts are inevitably less reliable than usual. This is particularly true of commitments, for which the estimate is purely speculative at present. The figures are based on the assumption that the 10th EDF will enter into force on 1 January 2008.
The new forecasts are set out in Annex 4, which calls for the following comments:
· To meet the rise in forecast payments in 2007 the EIB asked for an additional contribution of EUR 80 million in May this year. As this proposal was rejected by the Council, the amount has been integrated in the proposal on the second instalment. The amount of the third tranche forecast in October 2006 is confirmed for the present;
· Contributions for the Commission should rise from EUR 2 640 million to EUR 2 935 million. The Commission proposes a slightly higher second tranche of EUR 1 050 million, EUR 200 million more than estimated in October. According to current estimates the third tranche will be in the order of EUR 385 million.
· A preliminary estimate of the contributions required for 2008 gives a figure of EUR 3 672 million.
Annex 1: Consolidated situation of the EDFs (6th to 9th) for the ACP countries and OCTs at 31 December 2006 (EUR million)
Allocations Commitments Payments
COMMISSION
National and Local programmes 15 15 14
Interest-rate subsidies
Risk capital (6th to 8th EDFs) 2 2 2
Structural adjustment facility 2 2 2
Emergency aid
Aid for refugees
Stabex 3 3 3
Sysmin
Debt relief (EDFs 7 and 8) 1 1 1
Use of interest
Transfers from 4th and 5th EDFs
Subtotal - Lomé 28 28 26
Envelope A 9 8 3
Envelope B 1 1
Regional allocation
Intra-ACP allocation 2 2
CDE i, CTA i and JPA i
Studies and TA i for OCTs
DRC special assistance
Miscellaneous revenue
Transfer 6th EDF
Reserves
Subtotal Cotonou 16 13 4
Total for the Commission 44 41 31
EIB
Interest-rate subsidies
Investment Facility 2 1
Total for the EIB 1
Conditional billion
GRAND TOTAL (6th to 9th EDFs) 46 43 31
The figures in this table are net figures, i.e. after de-commitments and recoveries.
Breakdown of expenditure by instrument for the years 2005 and 2006
EUR million
[afbeelding - zie origineel document]
[afbeelding - zie origineel document]
[afbeelding - zie origineel document]
[afbeelding - zie origineel document]
[afbeelding - zie origineel document]
[afbeelding - zie origineel document]
[afbeelding - zie origineel document]
[afbeelding - zie origineel document]
[afbeelding - zie origineel document]
[afbeelding - zie origineel document]
[afbeelding - zie origineel document]
[afbeelding - zie origineel document]
COMMISSION
Indicative Programmes - 887. - 612.
Interest-rate subsidies - 0. - 1.
Emergency aid - 1. - 0.
Aid for refugees - 9. - 8.
Risk capital - 60. - 63.
Mining products - 15. - 16.
Stabex 8. 70. 9. 189.
Structural adjustment facility - 15. - 1.
Unexpended balances (4th + 5th EDFs) - 5. - 1.
Implementation expenditure - 1. - 0.
Subtotal 8. 1 069. 9. 893.
|
9th EDF + transitional measures
Envelope A 2 806. 950. 1 744. 1 240.
Envelope B 288. 192. 353. 154.
Regional projects 217. 23. 222. 49.
Intra-ACP Cotonou projects 143. 131. 1 037. 431.
Implementation expenditure DRC 7.30. 54.089. 21.016. 5.915.
Unexpended balances 6th EDF 4.
Other 40. 33. 4. 31.
Subtotal 3 502. 1 475. 3 398. 1 933.
|
Total managed by Commission 3 511. 2 544. 3 407. 2 826.
Investment Facility + interest-rate subsidies 508. 159. 628. 236.
EDF TOTAL 4 019. 2 703. 4 036. 3 062.
Communication Oct Outturn Communication Oct Revised Communication Oct Revised
Regions
East Africa
West Africa
Central Africa
Caribbean
Pacific
South Africa
Subtotal 2 2 2 2
Other
Peace Facility
Water Facility
Debt relief (HIPC)
Other
Total for the Commission 3 3 3 3 2 2
Investment Facility
Interest-rate subsidies
Total for EIB instruments (9th EDF)
TOTAL 4 4 3 3 3 3
* Taking account of the updated figures notified by the EIB at the discussions in the Council in November 2006.
Communication Oct In practice Communication Oct Revised Communication Oct Revised
Regions
East Africa
West Africa
Central Africa
Caribbean
Pacific
South Africa
All regions 6th, 7th and 8th EDFs - - - -
Subtotal 2 2 2 2 2
Other
Peace Facility
Water Facility
Risk capital (**)
Other
SUBTOTAL 2 2 2 3 3
Stabex
DR Congo
Total for the Commission 2 2 2 3 3 3
Investment Facility
Interest-rate subsidies
Total for EIB instruments (9th EDF)
TOTAL 2 3 3 3 3
* Taking account of the updated figures notified by the EIB at the discussions in the Council in November 2006. **Including interest-rate subsidies.
Annex 4: Financial Situation in 2006 and forecast for 2007 and 2008 – excluding Stabex and Special RDC Account(***) (EUR million)
| Communication Oct Revised
| Commission EIB TOTAL Commission EIB TOTAL
| 9th EDF 9th EDF
[afbeelding - zie origineel document]
[afbeelding - zie origineel document]
Balance at 31.12. 138* 138*
First tranche 1 1 1 1
Second tranche 1 . 1
Third tranche
Recoveries, interest and other
Payments -2 - -2 -2 - -2
Balance at 31.12. 131**
First tranche 1 1 1 1
Second tranche 1 1
Third tranche
Recoveries, interest and other
Payments -2 - -3 -3 - -3
Balance at 31.12.
Recoveries, interest and other
Payments -3 - -3
Balance at 31.12.
* Excluding EUR 1.4 million in 2006 contributions.
** Excluding EUR 3.5 million in 2007 contributions.
***Funds available for operations.
COUNTRY SCALE 1st tranche 2nd tranche 3rd tranche TOTAL
| paid paid payable to payable to payable to payable to for all
% EIB Commission EIB Commission EIB Commission tranches
BELGIUM 3. 2 744 58 800 7.448. 41 160 1 764 15 092 127 008
DENMARK 2. 1 498 32 100 4.066. 22 470 963 8 239 69 336
SPAIN 5. 4 088 87 600 11.096. 61 320 2 628 22 484 189 216
FRANCE 24. 17 010 364 500 46.170. 255 150 10 935 93 555 787 320
GREECE 1. 875 18 750 2.375. 13 125 562 4 812 40 500
IRELAND 0. 434 9 300 1.178. 6 510 279 2 387 20 088
ITALY 12. 8 778 188 100 23.826. 131 670 5 643 48 279 406 296
LUXEMBOURG 0. 203 4 350 551. 3 045 130 1 116 9 396
NETHERLANDS 5. 3 654 78 300 9.918. 54 810 2 349 20 097 169 128
PORTUGAL 0. 679 14 550 1.843. 10 185 436 3 734 31 428
UNITED KINGDOM 12. 8 883 190 350 24.111. 133 245 5 710 48 856 411 156
AUSTRIA 2. 1 855 39 750 5.035. 27 825 1 192 10 202 85 860
FINLAND 1. 1 036 22 200 2.812. 15 540 666 5 698 47 952
SWEDEN 2. 1 911 40 950 5.187. 28 665 1 228 10 510 88 452
TOTAL 100. 70 000 1 500 000 190.000. 1 050 000 45 000 385 000 3 240 000
--------------------------------------------------