Explanatory Memorandum to COM(2011)375 - Amending budget N° 4 to the budget 2011, Section III - Commission

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dossier COM(2011)375 - Amending budget N° 4 to the budget 2011, Section III - Commission.
source COM(2011)375 EN
date 17-06-2011
52011DC0375

DRAFT AMENDING BUDGET N° 4 TO THE GENERAL BUDGET 2011 GENERAL STATEMENT OF REVENUESTATEMENT OF EXPENDITURE BY SECTIONSection III - Commission /* COM/2011/0375 final */


DRAFT AMENDING BUDGET N° 4 TO THE GENERAL BUDGET 2011

GENERAL STATEMENT OF REVENUE STATEMENT OF EXPENDITURE BY SECTION Section III – Commission

Having regard to:

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

- the Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities i, and in particular Article 37 thereof,

- the general budget of the European Union for the financial year 2011 adopted on 15 December 2010 i,

- the amending budget No 1/2011 adopted on 6 April 2011,

- the draft amending budget No 2/2011 i, adopted on 25 March 2011,

- the draft amending budget No 3/2011 i, adopted on 15 April 2011,

The European Commission hereby presents to the budgetary authority the Draft Amending Budget No 4 to the 2011 budget.

Contents

1.

CHANGES TO THE GENERAL STATEMENT OF REVENUE, AND STATEMENT OF REVENUE AND EXPENDITURE BY SECTION


The changes to the general statement of revenue and to the statement of revenue and expenditure by section are available on EUR-Lex (eur-lex.europa.eu/budget/www/index-en). An English version of the changes to this statement is attached for information as a budgetary annex.

2.

TABLE OF CONTENT


3.

1. INTRODUCTION 3


4.

2. MIGRATION AND REFUGEE FLOWS 3


5.

2.1. INTRODUCTION 3


6.

2.2. FRONTEX 3


7.

2.3. SOLIDARITY AND MANAGEMENT OF MIGRATION FLOWS 4


8.

2.3.1 COMMUNITY ACTIONS 4


9.

2.3.2 EXTERNAL BORDERS FUND 4


10.

2.3.3 EUROPEAN RETURN FUND 4


11.

2.3.4 EUROPEAN REFUGEE FUND 4


12.

2.4. FINANCING 5


13.

3. OWN RESOURCES 6


14.

3.1. INTRODUCTION 6


15.

3.2. REVISION OF THE FORECAST OF TOR, VAT AND GNI BASES 7


16.

3.3. 2006, 2007 AND 2010 UK CORRECTION 9


17.

3.3.1 INTRODUCTION 9


18.

3.3.2 CALCULATION OF THE CORRECTIONS 10


19.

3.3.3 ENTRY IN THE DAB 4/2011 OF THE 1 ST UPDATE OF THE 2009 UK CORRECTION, DEFINITIVE AMOUNT OF THE 2007 UK CORRECTION AND OF THE CORRECTED DEFINITIVE AMOUNT OF THE 2006 UK CORRECTION 12


20.

3.4 REVISION OF THE FINANCING OF THE GROSS REDUCTIONS IN GNI PAYMENTS OF SWEDEN AND THE NETHERLANDS IN 2011 14


21.

4. SUMMARY TABLE BY HEADING OF THE FINANCIAL FRAMEWORK 15


22.

1. INTRODUCTION


Draft Amending Budget (DAB) No 4 for the year 2011 covers the following:

- A revision of the forecast of Traditional Own Resources (TOR, i.e. customs duties and sugar sector levies), VAT and GNI bases, the budgeting of the relevant UK corrections as well as their financing and revision of financing of GNI reductions in favour of the Netherlands and Sweden in 2011, resulting in a change in the distribution between Member States of their own resources contributions to the EU budget.

- A reinforcement of the Union's resources to manage migration and refugee flows, further to the recent developments in the Southern Mediterranean, in particular through additional appropriations for the Frontex agency, the External Borders Fund, the European Return Fund and the European Refugee Fund. The total net increase of appropriations requested for these purposes amounts to EUR 41,1 million in commitment appropriations and EUR 43,9 million in payment appropriations;

- A reduction of the level of payment appropriations for the Energy projects under the European Economic Recovery Plan (EERP), amounting to EUR 43,9 million. This concerns in particular the Energy networks, and is due to a revision of the payment schedules for some beneficiaries of infrastructure projects.

The combined net financial impact of this amending budget is EUR 41,1 million in commitment appropriations and zero in payment appropriations.

23.

2 . MIGRATION AND REFUGEE FLOWS


24.

2.1. Introduction


The recent developments in the Southern Mediterranean have led to high migratory pressure in the region. In line with the European Council conclusions of March 2011, the proposed reinforcement of EU actions under the External Borders Fund, the European Return Fund and the European Refugee Fund will allow supporting the efforts of the Member States most directly concerned, as well as to strengthen the capacities of the Frontex agency to carry out maritime surveillance activities in the Mediterranean. The corresponding additional needs in commitment appropriations will be partially met by redeployment of commitment appropriations within Title 18 (Home Affairs), whereas the additional needs in payment appropriations will be fully met by redeployment of payment appropriations from Title 32 (Energy), as set out in more detail in section 2.4 below.

25.

2.2. Frontex


The 2011 work programme of Frontex currently allocates an amount of EUR 24 million in commitment appropriations to maritime operations. However, the reinforcements and/or extensions in terms of duration and operational areas of ongoing or planned maritime operations which are required to cover the additional needs arising from the exceptional and unforeseen increase of migratory flows from Northern Africa effectively means that the agency's budget for maritime joint operations as it stands will be fully used by end of June 2011.

Therefore, a reinforcement of EUR 30 million is requested in commitment appropriations for the operational expenditure of Frontex (budget item 18 02 03 02). At this stage, a corresponding amount of EUR 24 million is requested in payment appropriations (i.e. equivalent to 80 % of the additional commitments). The remaining EUR 6 million in payment appropriations will only be needed towards the end of 2011, as payment appropriations are disbursed by Frontex on the basis of requests for payments made by Member States.

26.

2.3. Solidarity and Management of Migration Flows


27.

2.3.1 Community actions


The basic acts of the External Borders Fund, the European Return Fund and the European Refugee Fund all foresee a certain percentage of their overall financial envelopes for so-called Community actions, in order to finance transnational actions or actions of interest to the Community as a whole, in particular with a view to facing emergency situations which require urgent action.

The extraordinary scale of the current events in the Southern Mediterranean entails a significant burden for the Member States concerned, which is the reason why the Commission proposes to raise the allocations for Community actions to the maximum foreseen in the respective basic acts, over and above the appropriations pre-allocated to Member States under shared management. This topping-up requires a reinforcement of appropriations for all three funds mentioned above, to be made available in particular to Italy, Greece, Malta and Cyprus.

The basic act of the fourth Fund under Solidarity and Management of Migration Flows, the Integration of Third Country Nationals Fund, does not foresee support for emergency actions, and is therefore not concerned.

28.

2.3.2 External Borders Fund


The basic act of the External Borders Fund (EBF, budget article 18 02 06) allows allocating up to 6 % of the total available appropriations to Community actions, to finance inter-alia emergency measures. Thus far, this possibility has not been used for the Fund. The currently foreseen amount of EUR 10 million for Community actions represents 3,7 % of the overall level of appropriations for the Fund. An additional amount of EUR 6,5 million in commitment appropriations will bring the allocation for emergency measures to the maximum percentage allowed. These additional appropriations will be used to finance expenditure such as screening centres and detention facilities, transportation of migrants to other reception facilities, as well as equipment for ID checks and screening. The corresponding pre-financing of 75 % requires a reinforcement of EUR 4,9 million in payment appropriations.

29.

2.3.3 European Return Fund


The basic act of the European Return Fund (budget article 18 02 09) allows allocating up to 7 % of the total available appropriations to Community actions, to finance inter-alia emergency measures. The currently foreseen amount of EUR 4,5 million for Community actions represents 4 % of the overall level of appropriations for the Fund. An additional amount of EUR 3,7 million in commitment appropriations would bring the allocation for emergency measures to the maximum percentage allowed. These additional appropriations will be used to finance expenditure such as return operations, translation and interpretation, as well as procurement of travel expenses. The corresponding pre-financing of 75 % requires a reinforcement of EUR 2,8 million in payment appropriations.

30.

2.3.4 European Refugee Fund


The basic act of the European Refugee Fund (ERF, budget article 18 03 03) includes a yearly envelope of EUR 9,85 million for emergency measures (budget article 18 03 04), in order to provide assistance to Member States facing a sudden massive influx of refugees. Of the total amount of EUR 9,85 million available for 2011, an amount of EUR 3 million has already been earmarked to support Belgian reception facilities. However, a request recently received from Italy would require the funding which remains available, whereas new requests are expected to be received from Malta and Cyprus. In addition, Greece is likely to request by July 2011 a continuation of emergency funding received in the years 2008 to 2010.

Given these likely requirements, at this stage an additional amount of EUR 12 million is requested in commitment appropriations, in order to finance refugees' reception, basic needs and facilities. The corresponding advance payment of 80 % requires a reinforcement of EUR 9,6 million in payment appropriations. Furthermore, an amount of EUR 2,65 million in payment appropriations is needed to cover the pre-financing needs of the funding that is currently already foreseen for 2011. This brings the total additional payment needs for the ERF to EUR 12,25 million.

The combined reinforcements requested for the External Borders Fund, the European Return Fund and the European Refugee Fund, as specified in sections 2.3.2, 2.3.3 and 2.3.4 above, amount to EUR 22,2 million in commitment appropriations and EUR 19,9 million in payment appropriations.

31.

2.4. Financing


The additional financing needs identified above will be partially met by redeployment within Title 18, for a total amount of EUR 11,1 million in commitment appropriations. This internal redeployment mostly stems from the delayed launching of the 2011 call for framework partners for Prevention of and fight against crime (budget article 18 05 09, EUR 10 million). Furthermore, an amount of EUR 1,1 million in assigned revenue appropriations, resulting from the recovery of amounts wrongly paid, could not be taken into account in the 2011 allocation of the European Refugee Fund (budget article 18 03 03). This amount of EUR 1,1 million is proposed to be made available for the emergency measures under the European Refugee Fund (budget article 18 03 04).

The Commission proposes to cover the remaining financing needs of EUR 41,1 million in commitment appropriations from the margin under the expenditure ceiling of heading 3a (Freedom, Security and Justice), which currently stands at EUR 67,0 million.

The Commission proposes to cover the corresponding financing needs in payment appropriations of EUR 43,9 million through redeployment from the Energy projects under the European Economic Recovery Plan (EERP), and more in particular from Energy networks, budget item 32 04 14 01. The state of play of the implementation of payment appropriations for the Energy projects to aid economic recovery (budget article 32 04 14) is currently as follows:

- For Energy networks (budget item 32 04 14 01), some delays in requests for pre-financing and intermediate payments have led to a revision of the payment schedules for the beneficiaries concerned. Payments for these large-scale infrastructure projects are typically made on a limited number of occasions over the lifetime of the project, reflecting the various steps of project implementation (e.g. procurement contract concluded, works achieved). The corresponding under-implementation in payment appropriations in 2011 is estimated to amount to some EUR 357,1 million, due to operational delays in the implementation of seven projects and to a revised timing of payments for some other projects;

- For Carbon Capture and Storage (CCS, budget item 32 04 14 02), it is estimated that some delays in payment requests would postpone payments planned for the end of this year to 2012, for some EUR 36 million;

- For European offshore wind grid system (budget item 32 04 14 03), on the other hand, implementation is slightly ahead of schedule. Hence, a reinforcement of some EUR 5 million would be required;

- For Energy efficiency and renewable initiatives (budget item 32 04 14 04), payment needs in 2011 are estimated at EUR 36 million, whereas this new fund currently has a token entry (p.m.) only.

Thus, the expected under-implementation for Energy projects under the EERP at year-end is estimated at some EUR 352 million in payment appropriations, which are available for redeployment.

In parallel with this amending budget, the Commission will propose to use the remaining amount of under-implementation of payment appropriations for Energy projects under the EERP for broader redeployment purposes. The most significant reinforcement requirements in payment appropriations as currently identified are:

- The funding for the outstanding mobilisation of the EU Solidarity Fund relating to the effects of heavy rainfalls in Slovenia, Croatia and the Czech Republic, amounting to EUR 19,5 million in payment appropriations i.

- Replenishing by transfer, to the extent possible, the so-called negative reserve recently created by the Budgetary Authority as part of the financing of the mobilisation of the EU Solidarity Fund relating to the effects of heavy rainfalls in Poland, Slovakia, the Czech Republic, Hungary, Croatia and Romania, amounting to EUR 182,4 million in payment appropriations i;

- The additional payment needs for the European Globalisation Adjustment Fund (EGF), for which the Commission will present shortly a series of transfer requests;

Finally, an amount of some EUR 26 million is expected to be transferred within chapter 32 04 (Conventional and renewable energies), to cover additional needs for other programmes, notably for the Intelligent Energy – Europe programme (budget article 32 04 06).

32.

3. OWN RESOURCES


33.

3.1. Introduction


The following summary table shows the distribution of total own resources payments between Member States as budgeted in:

- the 2011 Budget,

- The Amending Budget 1/2011 covering the mobilisation of the EU Solidarity Fund for an amount of EUR 182 388 893 in commitment and payment appropriations relating to the effects of heavy rainfalls in Poland, Slovakia, the Czech Republic, Hungary, Croatia and Romania. No effect for the overall amount of payment appropriations.

- DAB 2/2011 is intended to cover the mobilisation of the EU Solidarity Fund for an amount of EUR 19 546 647 in commitment and payment appropriations relating to the effects of heavy rainfalls in Slovenia, Croatia and the Czech Republic. No effect for the overall amount of payment appropriations.[7]

- DAB 3/2011 is intended to budget the surplus resulting from the implementation of the budget year 2010 of EUR 4 539 394 283, which is therefore entered as revenue in the 2011 budget.

- The present DAB 4/2011.

34.

amounts in million euro


Budget DAB 3/ DAB 4/ DAB 4/2011 vs. DAB 3/

i i in % i = i – i

BE 4 861. 4 731. 4 896. 4.06% + 165.

BG 384. 371. 378. 0.31% + 7.

CZ 1 514. 1 464. 1 458. 1.21% - 5.

DK 2 569. 2 480. 2 458. 2.04% - 22.

DE 24 620. 23 697. 23 876. 19.80% + 179.

EE 147. 142. 152. 0.13% + 10.

IE 1 442. 1 394. 1 324. 1.10% - 69.

EL 2 339. 2 255. 2 140. 1.78% - 114.

ES 10 687. 10 305. 10 767. 8.93% + 462.

FR 20 464. 19 723. 19 678. 16.32% - 44.

IT 16 317. 15 745. 15 583. 12.93% - 161.

CY 198. 192. 189. 0.16% - 2.

LV 178. 172. 178. 0.15% + 6.

LT 307. 297. 296. 0.25% - 1.

LU 289. 279. 300. 0.25% + 20.

HU 1 037. 1 001. 970. 0.80% - 31.

MT 65. 62. 66. 0.06% + 3.

NL 6 310. 6 091. 5 892. 4.89% - 199.

AT 2 676. 2 572. 2 558. 2.12% - 14.

PL 3 893. 3 760. 3 704. 3.07% - 55.

PT 1 684. 1 625. 1 625. 1.35% + 0.

RO 1 313. 1 267. 1 196. 0.99% - 70.

SI 417. 404. 398. 0.33% - 5.

SK 725. 700. 700. 0.58% - 0.

FI 1 846. 1 779. 1 851. 1.54% + 72.

SE 3 132. 3 005. 3 299. 2.74% + 293.

UK 15 681. 15 041. 14 620. 12.13% - 421.

EU 125 105. 120 566. 120 566. 100.00% +

35.

3.2. Revision of the forecast of TOR, VAT and GNI bases


According to established practice the Commission proposes to revise the financing of the budget on the basis of more recent economic forecasts, adopted at a meeting of the Advisory Committee on Own Resources (ACOR).

The revision concerns the forecast of Traditional Own Resources (TOR) to be paid to the budget in 2011 as well as the forecast of the 2011 Value Added Tax (VAT) and Gross National Income (GNI) bases. The forecast in the 2011 Budget (and in AB 1/2011 to DAB 3/2011) was established at the 148th ACOR meeting on 18 May 2010. The revised forecast taken into account in the present DAB 4/2011 was adopted at the 151st ACOR meeting on 17 May 2011. The use of an updated forecast of own resources improves the accuracy of the payments that Member States are asked to make during the budgetary year and reduces the unavoidable forecasting errors from the previous year.

As compared to the forecast agreed in May 2010, the forecast agreed in May 2011 has been revised as follows:

- The total forecast of 2011 net sugar sector levies has not changed and remains EUR 123,4 million (after deduction of 25 % in collection costs).

- Total 2011 net customs duties (including duties on agricultural products) are now forecast at EUR 17 743,6 million (after deduction of 25 % in collection costs), which represents an increase by + 6,5 % relative to the May 2010 forecast of EUR 16 653,7 million. The main reason for this increase is higher forecast of 2011 extra-EU imports of goods. The forecast was made on a Member State basis, using forecast growth rates of extra-EU imports as published in the spring 2011 economic forecasts on 13 May 2011.

- The total 2011 EU uncapped VAT base is now forecast at EUR 5 607 441,1 million, which represents an increase of + 1,5 % as compared to the May 2010 forecast of EUR 5 526 424,7 million. The total 2011 EU capped VAT base i is forecast at EUR 5 589 006,65 million, which represents an increase of + 2,2 % as compared to the May 2010 forecast of EUR 5 468 082,0 million.

- The total 2011 EU GNI base is forecast at EUR 12 685 612,2 million, which represents an increase of + 1,1 % as compared to the May 2010 forecast of EUR 12 541 643,0 million.

The exchange rates of 31 December 2010 have been used for converting the forecast VAT and GNI bases in national currency into euro (for the ten Member States that are not members of the euro zone). This avoids distortions since it is this rate which is used to convert budgeted own resources payments from euro into national currency when the amounts are called in (as stipulated in Article 10 i of Council Regulation No 1150/2000).

The revised forecasts of TOR, uncapped VAT bases and GNI bases for 2011, as adopted at the 151st ACOR meeting on 17 May 2011, are set out in the following table (rounded figures):

36.

Revised forecasts of TOR, VAT and GNI bases for 2011 (in million EUR)


Sugar levies (75%) Customs duties (75%) Uncapped VAT bases GNI bases Capped VAT bases i

BE 6. 1 617. 162 758. 369 864. 162 758.

BG 0. 48. 16 901. 37 000. 16 901.

CZ 3. 205. 65 287. 139 185. 65 287.

DK 3. 321. 96 376. 245 802. 96 376.

DE 26. 3 570. 1 102 615. 2 611 964. 1 102 615.

EE 0. 21. 7 199. 14 674. 7 199.

IE 0. 188. 64 908. 126 696. 63 348.

EL 1. 206. 101 946. 217 589. 101 946.

ES 4. 1 268. 525 823. 1 054 267. 525 823.

FR 30. 1 555. 932 442. 2 033 164. 932 442.

IT 4. 2 030. 575 906. 1 575 388. 575 906.

CY 0. 28. 14 706. 17 932. 8 966.

LV 0. 19. 6 156. 18 660. 6 156.

LT 0. 41. 11 814. 29 031. 11 814.

LU 0. 14. 21 793. 31 651. 15 825.

HU 2. 104. 42 192. 97 845. 42 192.

MT 0. 11. 4 413. 6 099. 3 049.

NL 7. 1 908. 276 721. 612 179. 276 721.

AT 3. 172. 131 572. 292 712. 131 572.

PL 12. 357. 181 001. 368 999. 181 001.

PT 0. 138. 86 011. 164 480. 82 240.

RO 1. 110. 46 041. 124 809. 46 041.

SI 0. 71. 18 124. 36 186. 18 093.

SK 1. 113. 21 459. 68 711. 21 459.

FI 0. 152. 83 995. 192 974. 83 995.

SE 2. 489. 167 499. 393 286. 167 499.

UK 9. 2 978. 841 772. 1 804 454. 841 772.

EU 123. 17 743. 5 607 441. 12 685 612. 5 589 006.

37.

3.3. 2006, 2007 and 2010 UK correction


38.

3.3.1 Introduction


The correction of budgetary imbalances in favour of the United Kingdom (UK correction), to be budgeted in the present DAB, concerns three years: 2006, 2007 and 2010. As the UK correction of a certain year is to be financed in the following year, all 27 Member States participate in the financing of all three UK corrections, including the 2006 UK correction.

The 2006 UK correction is subject to the rules of Council Decision (EC, Euratom) No 2000/597 and its accompanying working document, the 2000 Calculation method i. The re-budgeting of the 2006 UK correction definitive amount in DAB 4/2011 follows the detection of the error by the European Court of Auditors and serves exclusively to the purpose of the correction of the error.

The 2007 and 2010 UK corrections are subject to the rules of Council Decision (EC, Euratom) No 2007/436 and its accompanying working document, the 2007 Calculation Method i. Pursuant to the rules of this Decision, the net TOR “windfall gains” of the UK resulting from the increase as from 2001 in the percentage of TOR retained by Member States as a compensation for their collection costs are neutralised and the allocated expenditure is adjusted by:

- pre-accession expenditure (PAE) paid under appropriations for payments relating to the year preceding the enlargement. The same adjustment for PAE will be followed at the occasion of each future enlargement of the Union but it will cease to apply as from the correction to be budgeted for the first time in 2014;

- for the 2010 UK correction, 100 % of total allocated expenditure in Member States that have acceded to the EU after 30 April 2004, except for agricultural direct payments and market-related expenditure as well as that part of the rural development expenditure originating from the EAGGF, Guarantee section. This reduction is to be phased-in progressively (20 % for 2008 correction budgeted in 2009, 70 % for 2009 correction budgeted in 2010 and 100 % as from 2010 correction budgeted in 2011).

Furthermore, the share of Austria, Germany, the Netherlands and Sweden in the financing of the UK correction is reduced to one fourth of their normal share. The reduction is financed by the other Member States, excluding the UK.

The difference between the amount of the 2006 UK correction ( corrected definitive amount ) and the amount previously budgeted (in 2010) is entered under chapter 35 of DAB 4/2011.

The difference between the definitive amount of the 2007 UK correction and the amount previously budgeted ( 1 st update in AB 3/2009) is entered under chapter 35 of DAB 4/2011.

The amount of the 1 st update of the 2010 UK correction is entered under chapter 15 of the DAB 4/2011, as a replacement of the provisional amount of the 2010 UK correction entered under chapter 15 of the Budget 2011.

39.

3.3.2 Calculation of the corrections


In the present DAB, the calculation and financing of the 1 st update of the 2010 UK correction, the definitive amount of the 2007 UK correction as well as of the corrected definitive amount of the 2006 UK correction are entered.

As far as the 2008 and 2009 UK corrections are concerned, the Commission shall (according to the 2007 Calculation Method ) propose to budget an update if they differ significantly from the corresponding previously budgeted calculation. According to the Commission’s current calculations, neither the amount of the 2008 UK correction nor the amount of the 2009 correction differ significantly from the 2 nd update of the 2008 UK correction entered in AB 4/2010 or the 1 st update of the 2009 correction entered in AB 4/2010. Consequently, the updates are not proposed for budgeting in the present DAB 4/2011.

40.

3.3.2.1 2010 UK correction


The following table summarises the changes between the provisional amount of the 2010 UK correction entered in Budget 2011 and the 1 st update of the 2010 UK correction to be entered in DAB 4/2011.

41.

2010 UK correction 2010 UK correction PROVISIONAL Budget 2010 UK correction 1st UPDATE DAB 4/ Difference


UK share of uncapped VAT base 15.3816% 15.0995% - 0.2820%

UK share of enlargement-adjusted total allocated expenditure 8.1222% 7.7390% - 0.3832%

= i - i 7.2593% 7.3605% + 0.1012%

Total allocated expenditure 112 118 871 111 581 136 - 537 735

Enlargement-related expenditure = (5a) + (5b) 25 444 654 23 885 731 - 1 558 922

(5a) Pre-accession expenditure 2 981 845 2 978 639 - 3 206

(5b) Expenditure related to Art 4(1)(g) 22 462 808 20 907 092 - 1 555 715

Enlargement-adjusted total allocated expenditure = i - i 86 674 217 87 695 404 + 1 021 187

UK correction original amount = i x i x 0. 4 152 698 4 260 193 + 107 494

UK advantage 1 046 923 388 810 - 658 112

Core UK correction = i - i 3 105 774 3 871 382 + 765 607

TOR windfall gains 26 548 29 810 + 3 262

UK correction = i - i 3 079 226 3 841 571 + 762 345

The 1 st update of the 2010 UK correction is EUR 762,3 million higher as compared to the provisional amount of the 2010 UK correction entered in Budget 2011.

For the 2010 UK correction the difference in the original amount of the UK correction between Own Resources Decision (ORD) 2000 and ORD 2007 is EUR 1 918,1 million in 2004 prices and EUR 2 083,5 million in current prices.

42.

3.3.2.2 2007 UK correction


The following table summarises the changes between the 1 st update of the 2007 UK correction entered in AB 3/2009 and the definitive amount of the 2007 UK correction to be entered in DAB 4/2011.

43.

2007 UK correction 2007 UK correction 1st update AB 3/ 2007 UK correction Definitive amount DAB 4/ Difference


UK share of uncapped VAT base 17.3696% 17.4496% + 0.0800%

UK share of enlargement-adjusted total allocated expenditure 7.2340% 7.2384% + 0.0044%

= i - i 10.1356% 10.2111% - 0.0756%

Total allocated expenditure 105 334 416 105 275 791 - 58 625

Enlargement-related expenditure = (5a) + (5b) 2 930 184 2 930 808 + 623

(5a) Pre-accession expenditure 2 930 184 2 930 808 + 623

(5b) Expenditure related to Art 4(1)(g) +

Enlargement-adjusted total allocated expenditure = i - i 102 404 232 102 344 983 - 59 249

UK correction original amount = i x i x 0. 6 850 293 6 897 392 + 47 098

UK advantage - 25 569 67 188 + 92 758

Core UK correction = i - i 6 875 863 6 830 204 - 45 659

TOR windfall gains - 44 329 - 46 980 - 2 650

UK correction = i - i 6 920 193 6 877 184 - 43 008

The definitive amount of the 2007 UK correction is EUR 43,0 million lower as compared to the 1 st update of the 2007 UK correction entered in AB 3/2009.

For the 2007 UK correction there is no difference in original amount of the UK correction between ORD 2000 and ORD 2007.

44.

3.3.2.3 2006 UK correction


The table hereafter summarises the changes between the definitive amount of the 2006 UK correction entered in AB 4/2010 and the corrected definitive amount of the 2006 UK correction to be entered in DAB 4/2011.

45.

2006 UK correction ORIGINAL DEFINITIVE AMOUNT AB 4/ CORRECTED DEFINITIVE AMOUNT DAB 4/ Difference


UK share of uncapped VAT base 17.2771% 17.2771% 0.0%

UK share of PAE-adjusted total allocated expenditure 8.6928% 8.6928% 0.0%

= i - i 8.5843% 8.5843% 0.0%

Total allocated expenditure 97 195 051 97 195 051 0.0%

Pre-accession expenditure (PAE) 1 837 296 1 837 296 0.0%

PAE-adjusted total allocated expenditure = i - i 95 357 755 95 357 755 0.0%

UK correction original amount = i x i x 0. 5 402 613 5 402 613 0.0%

UK advantage 26 640 215 286 + 188 645

Core UK correction = i - i 5 375 972 5 187 327 - 188 645

TOR windfall gains - 9 196 - 9 196 +

UK correction = i - i 5 385 169 5 196 524 - 188 645

The corrected definitive amount of the 2006 UK correction is EUR 188,6 million lower as compared to the original definitive amount of the 2006 UK correction entered in the AB 4/2010. The difference is due to the increase in the so-called “UK advantage” which decreases the 2006 UK correction by EUR 188,6 million.

46.

3.3.2.4 EUR 10,5 billion ceiling


According to article 4 i of Decision 2007/436, during the period 2007-2013 the additional contribution of the United Kingdom resulting from the reduction of allocated expenditure by the expenditure related to enlargement as referred to in paragraph (1)(g) of ORD 2007 shall not exceed EUR 10,5 billion, measured in 2004 prices. The cumulative effect of 2007 to 2010 is EUR 3 469,6 million in 2004 prices and EUR 3 735,2 million in current prices.

47.

2007-2012 UK corrections Difference in original amount in reference to EUR 10,5 billion threshold (ORD 2007 vs. ORD 2000), in EUR Difference in current prices Difference in constant 2004 prices


(A) 2007 UK correction

(B) 2008 UK correction - 301 636 - 279 914

(C) 2009 UK correction - 1 350 053 - 1 271 666

(D) 2010 UK correction - 2 083 537 -1 918 060

(E) 2011 UK correction n/a n/a

(F) 2012 UK correction n/a n/a

(G) Sum of differences = (A) + (B) + (C) + (D) + (E) + (F) -3 735 226 -3 469 641

48.

3.3.3 Entry in the DAB 4/2011 of the 1 st update of the 2010 UK correction, definitive amount of the 2007 UK correction and of the corrected definitive amount of the 2006 UK correction


49.

3.3.3.1 2010 UK correction (chapter 15)


The amount of the UK correction to be budgeted in chapter 15 of the present DAB 4/2011 is the amount of the 1 st update of the 2010 UK correction (i.e. EUR 3 841 571 660, replacing the EUR 3 079 226 649 entered in Budget 2011).

This amount is to be financed along the revised 2011 GNI bases of the present DAB 4/2011. The budgeting of this amount in chapter 15 is summarised below:

2010 UK correction — Chapter

50.

BE 185 512 LU 15 875


BG 18 558 HU 49 076

CZ 69 811 MT 3 059

DK 123 287 NL 54 032

DE 230 537 AT 25 835

EE 7 360 PL 185 079

IE 63 547 PT 82 498

EL 109 136 RO 62 600

ES 528 789 SI 18 149

FR 1 019 775 SK 34 463

IT 790 168 FI 96 790

CY 8 994 SE 34 712

LV 9 359 UK -3 841 571

LT 14 561 Total

51.

3.3.3.2 2007 UK correction (chapter 35)


The amount of the UK correction to be budgeted in chapter 35 of the present DAB 4/2011 is the difference between the definitive amount of the 2007 UK correction (i.e. EUR 6 877 184 806) and the 1 st update of the 2007 UK correction (i.e. EUR 6 920 193 583 entered in AB 3/2009), amounting to EUR 43 008 777.

This amount is to be financed along the revised 2008 GNI bases as known at the end of 2010. The budgeting of this amount in chapter 35 is summarised below:

2007 UK correction — Chapter

52.

BE 706 LU - 114


BG 535 HU 757

CZ 6 744 MT 11

DK - 5 289 NL - 683

DE - 870 AT - 640

EE - 989 PL 14 123

IE - 6 610 PT 3 156

EL - 10 394 RO 7 742

ES - 14 463 SI 657

FR - 4 098 SK 3 867

IT - 32 446 FI - 4 997

CY - 71 SE 98

LV 153 UK 43 008

LT 108 Total

53.

3.3.3.3 2006 UK correction (chapter 35)


The financing of the definitive amount of the 2006 UK correction is entered in chapter 35 of the present DAB 4/2011 along the 2007 GNI (and VAT) bases as known at the end of 2009. The amount budgeted in chapter 35 is the adjustment as regards the direct effect , i.e. the difference between what each Member State should pay for the corrected definitive amount of the 2006 UK correction (along the 2007 GNI bases as known at the end of 2009) and the corresponding amounts previously budgeted (i.e. the payments for the financing of the original definitive amount of the 2006 UK correction budgeted in AB 4/2010).

The financing of the definitive amount of the 2006 UK correction in chapter 35 of the present DAB 4/2011 is summarised below:

54.

Definitive amount original (AB 4/2010) Definitive amount corrected (DAB 4/2011) Adjustment


i i = i - i

55.

BE 241 184 249 940 - 8 755


BG 20 426 21 167 - 741

CZ 84 654 87 728 - 3 073

DK 163 314 169 243 - 5 928

DE 313 411 324 788 - 11 377

EE 10 339 10 714 - 375

IE 115 782 119 985 - 4 203

EL 156 742 162 432 - 5 690

ES 733 624 760 257 - 26 632

FR 1 370 758 1 420 519 - 49 761

IT 1 096 805 1 136 622 - 39 816

CY 10 852 11 246 - 393

LV 14 663 15 195 - 532

LT 19 717 20 433 - 715

LU 21 248 22 019 - 771

HU 66 833 69 259 - 2 426

MT 3 781 3 918 - 137

NL 72 641 75 278 - 2 637

AT 33 562 34 780 - 1 218

PL 213 950 221 717 - 7 766

PT 111 724 115 780 - 4 055

RO 86 436 89 574 - 3 137

SI 24 182 25 060 - 877

SK 38 099 39 482 - 1 383

FI 128 728 133 402 - 4 673

SE 43 055 44 618 - 1 563

UK - 5 196 524 - 5 385 169 + 188 645

56.

Total


57.

3.4 Revision of the financing of the gross reductions in GNI payments of Sweden and the Netherlands in 2011


The gross reductions in the GNI payments of the Netherlands and Sweden for 2011 were established in Budget 2011. The amounts were adjusted to current prices by applying the GDP deflator for the EU expressed in Euro, as provided by the Commission in the 2010 Spring Economic Forecast, i.e. which was available when the draft budget 2011 was drawn up. The gross amounts are EUR 665,0 million for the Netherlands and EUR 164,9 million for Sweden and they do not and will not change.[12]

The reductions are to be financed by all Member States according to the shares in GNI. The financing is therefore modified according to the update of the GNI bases for 2011 as agreed during the 151st ACOR Forecast meeting on 17 May 2011.

The following table provides an overview of the financing of the gross reductions for 2011:

58.

Reductions in 2011 GNI payments of the Netherlands and Sweden


BE 24 197 LU 2 070

BG 2 420 HU 6 401

CZ 9 105 MT 399

DK 16 081 NL - 624 989

DE 170 881 AT 19 149

EE 960 PL 24 140

IE 8 288 PT 10 760

EL 14 235 RO 8 165

ES 68 972 SI 2 367

FR 133 014 SK 4 495

IT 103 066 FI 12 624

CY 1 173 SE - 139 156

LV 1 220 UK 118 052

LT 1 899 Total

59.

4. SUMMARY TABLE BY HEADING OF THE FINANCIAL FRAMEWORK


Financial framework Heading/subheading 2011 Financial framework Budget 2011 (incl. AB 1 and DAB 2 to 3/2011) DAB 4/ Budget 2011 (incl. AB 1 and DAB 2 to 4/2011)

|CAPACAPACAPACAPA 1. SUSTAINABLE GROWTH 1a. Competitiveness for growth and employment12 987 000 13 520 566 11 608 256 -43 922 13 520 566 11 564 333 1b. Cohesion for growth and employment50 987 000 50 980 593 41 652 094 50 980 593 41 652 094 Total63 974 000 64 501 160 53 260 350 -43 922 64 501 160 53 216 428 Margin i-27 160 -27 160 2. PRESERVATION AND MANAGEMENT OF NATURAL RESOURCES Of which market related expenditure and direct payments47 617 000 42 891 201 42 788 499 42 891 201 42 788 499 Total59 688 000 58 659 248 56 378 918 58 659 248 56 378 918 Margin1 028 751 1 028 751 3. CITIZENSHIP, FREEDOM, SECURITY AND JUSTICE 3a. Freedom, Security and Justice1 206 000 1 138 954 813 277 41 075 43 922 1 180 030 857 199 3b. Citizenship683 000 879 831 664 340 879 831 664 340 Total1 889 000 2 018 786 1 477 617 41 075 43 922 2 059 861 1 521 540 Margin i67 148 26 072 4. EU AS A GLOBAL PLAYER i8 430 000 8 759 300 7 238 702 8 759 300 7 238 702 Margin -70 439 -70 439 5. ADMINISTRATION i8 144 000 8 172 839 8 171 544 8 172 839 8 171 544 Margin 53 160 53 160 TOTAL142 125 000 133 440 000 142 111 334 126 527 133 41 075 142 152 409 126 527 133 Margin 1 156 461 7 934 866 1 115 385 7 934 866
[2000/597] on the system of the EU own resources” referred as the 2000 Calculation Method and available on:

ec.europa.eu/budget/biblio/documents/financing
[2007/436] on the system of the EU own resources” referred as the 2007 Calculation Method and available on:

ec.europa.eu/budget/library/biblio/documents