Explanatory Memorandum to COM(2024)120 - - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2024)120 - . |
|---|---|
| source | COM(2024)120 |
| date | 18-06-2024 |
Technical adjustment of the multiannual financial framework for 2025 in accordance with Article 4 of Council Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021 to 2027
1. introduction
The present communication provides the budgetary authority with the result of the technical adjustment ahead of the budgetary procedure for the year 2025 in accordance with Article 4 of Council Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021 to 20271 (the ‘MFF Regulation’). In particular, the technical adjustment establishes the expenditure ceilings at current prices based on the fixed 2% deflator as provided for in Article 4(2) of the MFF Regulation.
On the basis of the latest economic forecasts2, the communication also provides a calculation of the margin under the own resources ceiling set in application of the Council Decision on the system of own resources of the European Union in force at the time of the adoption of this communication.
The communication also presents the amounts available under the Single Margin Instrument under Article 11(1)(a) and 11(1)(c), the adjustment of the payment ceiling in accordance with Article 11(1)(b) and the programme specific adjustments as provided in Article 5 of the MFF Regulation. Following the adoption of Council Regulation (EU, Euratom) No 2024/765 of 29 February 20243, it also includes the calculation of the amount available for the EURI Instrument for the year 2025 in accordance with Article 10a(3), point (a) of the MFF Regulation, as well as the calculation of the amounts to be made available in 2025 to the Flexibility Instrument under Article 12(1), second subparagraph from lapsed amounts of the Solidarity and Emergency Aid Reserve (European Solidarity Reserve and Emergency Aid Reserve).
In accordance with Article 4(1) of the MFF Regulation, the Commission makes the technical adjustment to the financial framework and communicates the results to the budgetary authority each year, ahead of the budgetary procedure for year n+1.
According to Article 4(4) of the MFF Regulation, and without prejudice to Articles 6 and 7 of that Regulation, no further technical adjustments are made in respect of the year concerned, either durig the year or as ex-post corrections during subsequent years.
2. Terms of the adjustment of the Multiannual Financial Framework table (Annex - tables 1-2)
Table 1 in the Annex shows the EU multiannual financial framework in 2018 prices of the MFF Regulation adjusted according to Articles 2(1), 5(2) and 11 of that Regulation.
Table 2 in the Annex shows the EU multiannual financial framework adjusted in current prices.
The financial framework expressed in percentage of the Union’s gross national income (GNI) is updated with the latest economic forecasts. On that basis, the EU GNI for 2025 is established at EUR 18 424 574 million in current prices.
1. Main results of the technical adjustment of the Multiannual Financial Framework for 2025
The overall MFF ceiling for commitment appropriations for 2025 stands at EUR 190 544 million in current prices, which equals 1,03% of GNI. The overall MFF ceiling for payment appropriations corresponds to EUR 175 378 million in current prices, equivalent to 0,95% of GNI.
On 1 June 2021, Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources (‘ORD 2020’)4 entered into force. It applies retroactively as of 1 January 2021. The own resources ceiling for payment appropriations is set at 2,00% of the sum of all the Member States’ GNIs. Out of this, 0,60 percentage points are a temporary increase for the sole purpose of covering all liabilities stemming from the European Union Recovery Instrument5.
The resulting margin for 2025 between the MFF ceiling for payment appropriations and the own resources ceiling for payment appropriations stands at EUR 193 113 million, or 1,05% of GNI6.
The table below provides information for the period 2021-2027 on the margin (in percentage of GNI) between the MFF ceiling for payment appropriations and the own resources ceiling for payment appropriations.
| In % of EU GNI | 2021 | 2022 | 2023 | 20247 | 2025 | 2026 | 2027 | 2021-2027 |
| MFF ceiling for payment appropriations | 1,18% | 1,12%% | 0,99% | 0,96% | 0,95% | 0,95% | 0,93% | 1,01% |
| Margin beneath the 2,00% GNI own resources ceiling in application of Council Decision (EU, Euratom) 2020/2053 | 0,02% | 0,88% | 1,01% | 1,04% | 1,05% | 1,05% | 1,07 | 0,998 |
2. Adjustment of the sub-ceiling for Heading 3
The 2024 technical adjustment9 included all transfers between direct payments and rural development decided by Member States in their CAP Strategic plans. According to Articles 17(5) and 103(5) of Regulation (EU) 2021/211510, the transfer decisions already made can only be reviewed in 2025. There is therefore no change compared to the 2024 exercise.
The amounts in current prices in the Heading 3 sub-ceiling are converted into 2018 prices to adjust the multiannual financial framework table which is expressed in 2018 prices. For this purpose, the net balance of transfers is first converted into 2018 prices by using the 2% fixed annual deflator. This result is then rounded up to express the adjusted sub-ceiling in millions of euros. The rounding-up is necessary to ensure that the MFF sub-ceiling is always higher than the net balance available for expenditure in the annual budget for the European Agricultural Guarantee Fund (EAGF). The resulting small difference does not constitute an available margin, but is exclusively arising from the rounding operation. For each annual budget, the Commission will use the exact amounts of the net balance available for EAGF expenditure.
The table below shows the net result (in million euro) of the transfers between the two pillars of CAP and their impact for the Heading 3 sub-ceiling.
| Sub-ceiling for EAGF (market related expenditures and direct payments) after transfers in current and 2018 prices (EUR million) | ||||||||
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2021-2027 | |
| - in current prices - | ||||||||
| Initial H3 sub-ceiling | 40 925,000 | 41 257,000 | 41 518,000 | 41 649,000 | 41 782,000 | 41 913,000 | 42 047,000 | 291 091,000 |
| Net transfers to date | - 557,046 | - 618,811 | -825,789 | -1 046,922 | -1 117,072 | -1 222,773 | -1 396,205 | -6 784,618 |
| H3 sub-ceiling change following the MFF mid-term revision | -136,000 | -149,000 | -155,000 | -440,000 | ||||
| H3 sub-ceiling set in the last technical adjustment (2024) | 40 368,000 | 40 639,000 | 40 693,000 | 40 603,000 | 40 529,000 | 40 542,000 | 40 496,000 | 283 870,000 |
| Net transfer in the current technical adjustment (2025) | - | - | - | - | ||||
| Total net difference compared to initial sub-ceiling | - 557,046 | - 618,811 | -825,789 | -1 046,922 | -1 253,072 | -1 371,773 | -1 551,205 | -7 224,618 |
| EAGF net balance after all transfers and MFF mid-term revision | 40 367,954 | 40 638,189 | 40 692,211 | 40 602,078 | 40 528,928 | 40 541,227 | 40 495,795 | 283 866,382 |
| H3 sub-ceiling after transfers | 40 368,000 | 40 639,000 | 40 693,000 | 40 603,000 | 40 529,000 | 40 542,000 | 40 496,000 | 283 870,000 |
| Rounding difference | 0,046 | 0,811 | 0,789 | 0,922 | 0,072 | 0,773 | 0,205 | 3,618 |
| Difference to original sub-ceiling after all transfers | - 557,000 | - 618,000 | -825,000 | -1 046,000 | -1 253,000 | -1 371,000 | -1 551,000 | -7 221,000 |
| - in 2018 prices - | ||||||||
| Initial H3 sub-ceiling | 38 564,000 | 38 115,000 | 37 604,000 | 36 983,000 | 36 373,000 | 35 772,000 | 35 183,000 | 258 594,000 |
| Net transfers to date | -524,375 | -571,595 | -747,811 | -929,637 | -972,478 | -1 043,625 | -1 168,282 | -5 957,803 |
| H3 sub-ceiling change following the MFF mid-term revision | -118,396 | -127,170 | -129,697 | -375,263 | ||||
| H3 sub-ceiling set in the last technical adjustment (2024) | 38 040,000 | 37 544,000 | 36 857,000 | 36 054,000 | 32 283,000 | 34 602,000 | 33 886,000 | 252 266,000 |
| Net transfer in the current technical adjustment (2025) | - | - | - | - | ||||
| Total net difference compared to initial sub-ceiling | -524,375 | -571,595 | -747,811 | -929,637 | -1 090,875 | -1 170,795 | -1 297,979 | -6 333,066 |
| EAGF net balance after all transfers and MFF mid-term revision | 38 039,625 | 37 543,405 | 36 856,189 | 36 053,363 | 35 282,125 | 34 601,205 | 33 885,021 | 252 260,934 |
| H3 sub-ceiling after transfers | 38 040,000 | 37 544,000 | 36 857,000 | 36 054,000 | 35 283,000 | 34 602,000 | 33 886,000 | 252 266,000 |
| Rounding difference | 0,375 | 0,595 | 0,811 | 0,637 | 0,875 | 0,795 | 0,979 | 5,066 |
| Difference to original sub-ceiling after all transfers | - 524,000 | - 571,000 | -747,000 | -929,000 | -1 090,000 | -1 170,000 | -1 297,000 | -6 328,000 |
3. Programme specific adjustments in accordance with Article 5(2) of the MFF Regulation
In accordance with Articles 5(2) and 4(1)(e) of the MFF Regulation, this communication includes the calculation, for the year 2025, of the additional allocations for specific programmes referred to in Annex II to the MFF Regulation and the resulting upwards adjustments of the ceilings for commitment and payment appropriations.
For 2023, the revenue from fines (and related interest) imposed under Council Regulations (EC) No 1/200311 and (EC) No 139/200412 and recorded as budgetary revenue up to the end of the year amounts to EUR 157 million13 (EUR 139 million in 2018 prices). This amount is below the minimum threshold of EUR 1 500 million in 2018 prices. Therefore, the minimum threshold provides the total volume of the adjustment for 2025 in 2018 prices.
The adjustment in current prices amounts to EUR 1 724 million after applying the 2% annual deflator and rounding up to million euro in line with how the MFF ceilings are expressed. This amount corresponds to the upward adjustment of the overall ceiling in commitment appropriations and the ceiling in payment appropriations for the year 2025.
The breakdown of the adjustment by MFF heading and programme is based on the column Distribution key of Annex II to the MFF Regulation, as modified by Regulation (EU, Euratom) No 2024/765 for the years 2025 to 2027. The adjustments of the individual ceilings in commitment appropriations are rounded up to the nearest million euro14.
| COMMITMENT CEILING: | Current prices | 2018 prices |
| 1. Single Market, Innovation and Digital | 721 000 000 | 627 000 000 |
| Horizon Europe | 540 706 868 | 470 212 491 |
| InvestEU Fund | 180 293 132 | 156 787 509 |
| 2b. Resilience and Values | 822 000 000 | 716 000 000 |
| EU4Health | 264 533 920 | 230 421 273 |
| Erasmus+ | 305 840 452 | 266 401 173 |
| Creative Europe | 107 741 206 | 93 847 571 |
| Rights and Values | 143 884 422 | 125 329 983 |
| 4. Migration and Border Management | 181 000 000 | 157 000 000 |
| Integrated Border Management Fund | 181 000 000 | 157 000 000 |
| Total commitment ceiling: | 1 724 000 000 | 1 500 000 000 |
| PAYMENT CEILING: | 1 724 000 000 | 1 500 000 000 |
4. Adjustment of the payment ceiling in accordance with Article 4(1)(d) and Article 11(1)(b) – Single Margin Instrument.
In accordance with Article 4(1)(d) of the MFF Regulation, the technical adjustment shall include the amount of the adjustment of the ceiling for payment appropriations under the Single Margin Instrument (SMI) as referred to in point (b) of the first subparagraph of Article 11(1).
The 2023 payment ceiling was EUR 168 575 million in current prices. The payments executed in 2023 amount to EUR 163 286 million. To this amount the carry-overs from 2023 to 2024 must be added (EUR 1 719 million) as they are considered as executed.
The payments and carry-overs related with the special instruments (EUR 2 929 million) are excluded from the execution as they are treated as being over and above the MFF ceilings in accordance with Article 3(2) of the MFF Regulation. Therefore the execution taken into account for the calculation of the SMI is EUR 162 075 million.
The remaining margin under the 2023 payment ceiling is EUR 6 522 million in current prices.
The table below shows the details of the calculation of the SMI part 11(1)(b).
| Single Margin Instrument part 11(1)(b) (payments) | ||
| EUR million | 2023 | |
| (1) | PA ceiling (2018 prices) before SMI 11(1)(b) | 152 683,0 |
| (2) | PA ceiling (current prices) before SMI 11(1)(b) | 168 575,0 |
| (3) | Mobilisation SMI Art 11(1)(c) in payments (+/-) | 0,0 |
| (4) = (2) + (3) | TOTAL CEILING TO COMPARE THE IMPLEMENTATION ON VOTED BUDGET | 168 575,0 |
| (5) | Executed payments on the voted budget | 163 285,7 |
| (6) | Executed payments on the voted budget for EGF | 6,7 |
| (7) | Executed payments on the voted budget for the SEAR - EUSF | 249,5 |
| (8) | Executed payments on the voted budget for the SEAR - EAR | 0,0 |
| (9) | Executed payments on the voted budget for Brexit Adjustment Reserve | 997,2 |
| (10) | Executed payments on the voted budget for Flexibility instrument | 948,1 |
| (11) = (6) + (7) + (8) + + (9) + (10) | Executed payments on the voted budget for special instruments | 2 201,6 |
| (12) | Carry-overs from year n to year n+1 | 1 719,1 |
| (13) | Carry-over from year n to year n+1 for the EGF | 0,1 |
| (14) | Carry-over from year n to year n+1 for the SEAR | 400,0 |
| (15) | Carry-over from year n to year n+1 for Brexit Adjustment Reserve | 327,7 |
| (16) = (13) + (14) + (15) | Carry-over of special instruments | 727,8 |
| (17) | Lapsed carry-overs from year n-1 to year n | 22,3 |
| (18) | Lapsed carry-over from year n-1 to year n EGF | 0,01 |
| (19) | Lapsed carry-over from year n-1 to year n SEAR | 0,0 |
| (20) | Lapsed carry-over from year n-1 to year n for Brexit Adjustment Reserve | 0,0 |
| (21) = (18) + (19) + (20) | Lapsed carry-over of special instruments | 0,0 |
| (22) = (5) + (12) - (17) | TOTAL EXECUTED PAYMENTS n + CARRY-OVER n TO n+1 - LAPSED CARRY OVER n-1 | 164 982,5 |
| (23) = (11) + (16) - (21) | Special instruments: total execution + carry-over - lapsed carry-over | 2 929,4 |
| (24) = (4) - (22) + (23) | Remaining margin | 6 521,9 |
| (25) = (24) rounded to millions | Single Margin Instrument part 11(1)(b) (current prices) | 6 522,0 |
| (26) = (25) adjusted to 2018 prices using 2% deflator and rounded to millions | Single Margin Instrument part 11(1)(b) (2018 prices) | 5 907,0 |
The amount of the SMI part 11(1)(b) in 2018 prices corresponds to EUR 5 907 million. Taking into account the provisions of Article 11(3), the payment ceiling in 2023 shall be decreased by this amount. The amount of the SMI part 11(1)(b) is transferred in two equal parts (EUR 2 953,5 million) to the payment ceilings of the years 2026 and 2027. This results in an unchanged overall payment ceiling for the period 2021-2027 in 2018 prices.
According to Article 4(2) of the MFF Regulation, the 2% deflator shall be used for the calculation of the SMI part 11(1)(b) and the corresponding adjustment of the payment ceiling. The 2023 ceiling in current prices is therefore reduced by EUR 6 522 million and the ceiling in current prices is increased by EUR 3 460 million for 2026 and EUR 3 530 million for 2027. As a result of the application of Article 11(1)(b), the overall payment ceiling in current prices for the period 2021-2027 corresponds to EUR 1 201 064 million.
The table below shows the details of the adjustment of the payment ceiling resulting from the implementation of the provisions of Article 11(1)(b).
| Adjustment of the ceilings SMI part 11(1)(b) (EUR million) | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2021-2027 |
| Initial payment ceiling (Annex I Regulation 2020/2093) | ||||||||
| 2018 prices | 156 557 | 154 822 | 149 936 | 149 936 | 149 936 | 149 936 | 149 936 | 1 061 058 |
| current prices | 166 140 | 167 585 | 165 542 | 168 853 | 172 230 | 175 674 | 179 187 | 1 195 211 |
| Payment ceiling as last adjusted (Art. 7 adjustment COM(2022)80 of 28 January 2022), | ||||||||
| 2018 prices | 156 557 | 156 322 | 149 936 | 149 936 | 149 936 | 149 936 | 149 936 | 1 062 558 |
| current prices | 166 140 | 169 209 | 165 542 | 168 853 | 172 230 | 175 674 | 179 187 | 1 196 835 |
| Single Margin Instrument Part (1)(b) from 2021 | ||||||||
| adjustment of the payment ceiling (2018 prices) | -2 492 | 1 246 | 1 246 | 0 | ||||
| adjustment of the payment ceiling (current prices) | -2 644 | 1 349 | 1 376 | 81 | ||||
| Adjusted payment ceiling as per Article 11(1)(b) (Tech. adjustment for 2023) | ||||||||
| 2018 prices | 154 065 | 157 568 | 151 182 | 149 936 | 149 936 | 149 936 | 149 936 | 1 062 558 |
| current prices | 163 496 | 170 558 | 166 918 | 168 853 | 172 230 | 175 674 | 179 187 | 1 196 916 |
| Payment ceiling as last adjusted (Technical adjustment for 2023 COM(2022)266 of 7 June 2022), | ||||||||
| 2018 prices | 154 065 | 157 568 | 152 682 | 149 936 | 149 936 | 149 936 | 149 936 | 1 064 058 |
| current prices | 163 496 | 170 558 | 168 575 | 168 853 | 172 230 | 175 674 | 179 187 | 1 198 573 |
| Single Margin Instrument Part (1)(b) from 2022 | ||||||||
| adjustment of the payment ceiling (2018 prices) | -3 718 | 1 239,3 | 1 239,3 | 1 239,3 | 0,0 | |||
| adjustment of the payment ceiling (current prices) | -4 024 | 1 424,0 | 1 452,0 | 1 481,0 | 333,0 | |||
| Adjusted payment ceiling as per Article 11(1)(b) (Tech. adjustment for 2024) | ||||||||
| 2018 prices | 154 065 | 153 850 | 152 682 | 149 936 | 151 175 | 151 175 | 151 175 | 1 064 058 |
| current prices | 163 496 | 166 534 | 168 575 | 168 853 | 173 654 | 177 126 | 180 668 | 1 198 906 |
| Payment ceiling as last adjusted (Technical adjustment for 2024 COM(2024)110 of 29 February 2024), | ||||||||
| 2018 prices | 154 065 | 153 850 | 152 682 | 151 436 | 151 175 | 151 175 | 151 175 | 1 065 558 |
| current prices | 163 496 | 166 534 | 168 575 | 170 543 | 173 654 | 177 126 | 180 668 | 1 200 596 |
| Single Margin Instrument Part (1)(b) from 2023 | ||||||||
| adjustment of the payment ceiling (2018 prices) | -5 907,0 | 2 953,5 | 2 953,5 | 0,0 | ||||
| adjustment of the payment ceiling (current prices) | -6 522,0 | 3 460,0 | 3 530,0 | 468,0 | ||||
| Adjusted payment ceiling as per Article 11(1)(b) (Tech. adjustment for 2025) | ||||||||
| 2018 prices | 154 065 | 153 850 | 146 775 | 151 436 | 151 175 | 154 128 | 154 128 | 1 065 558 |
| current prices | 163 496 | 166 534 | 162 053 | 170 543 | 173 654 | 180 586 | 184 198 | 1 201 064 |
The table below shows the details of the application of the maximum amounts for the annual adjustment in 2025-2027 in accordance with Article 11(3). The transfers made to 2026 and 2027 are in line with the maximum amounts set in that Article. The amount for 2026 will be established in line with Article 11(3a).
| Adjustment cap (Article 11(3) and (3a)) (EUR million) | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 |
| Single Margin Instrument Part (1)(b) - Adjustment cap (2018 prices) | 8 000 | 13 000 | 15 000 | ||||
| Payment ceiling adjustments 11(1)(b) to date (2018 prices) | 1 239 | 4 193 | 4 193 | ||||
| Remaining under cap (2018 prices) | 6 761 | 8 807 | 10 807 | ||||
| Remaining under cap (current prices) | 7 766 | 10 319 | 12 916 |
3. Special instruments
Special instruments are available outside the expenditure ceilings of the 2021-2027 multiannual financial framework. These instruments aim to ensure rapid response to exceptional or unforeseen events, and to provide flexibility beyond the agreed expenditure ceilings within certain limits set in the MFF Regulation.
1. Thematic Special Instruments
1. European Globalisation Adjustment Fund
According to Article 8 of the amended MFF Regulation, the European Globalisation Adjustment Fund for Displaced Workers (EGF)15 can be mobilised up to a maximum of EUR 30 million per year in 2018 prices, or EUR 34,5 million in current prices for 202516. Unused amounts of the previous year cannot be carried over.
The table below shows the details of the annual availability of the EGF and, for information, the mobilisation at 31 December 2023.
| European Globalisation Adjustment Fund for Displaced Workers (EGF) - commitments | |||||||||
| EUR million | |||||||||
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total | ||
| Annual amounts in 2018 prices | 186,0 | 186,0 | 186,0 | 30,0 | 30,0 | 30,0 | 30,0 | 678,0 | |
| Annual amounts in current prices | 197,4 | 201,3 | 205,4 | 33,8 | 34,5 | 35,1 | 35,9 | 743,4 | |
| Annual mobilisation | 24,0 | 28,0 | 8,4 | 60,5 | |||||
| Lapsed | 173,4 | 173,3 | 197,0 | 543,6 |
2. Solidarity and Emergency Aid Reserve (European Solidarity Reserve and Emergency Aid Reserve)
Contents
- According to Article 9 of the amended MFF Regulation, the Solidarity and Emergency Aid Reserve (SEAR) is split as of 1 January 2024 into two separate instruments:
- - The European Solidarity Reserve, which can be mobilised up to a maximum amount of EUR 1 016 million per year in 2018 prices, or EUR 1 167,1 million at current prices for 2025; and
- The table below shows the details of the availabilities and the use of the SMI since 2021 up to budget 2024 as adopted on 23 November 2023:
According to Article 9 of the amended MFF Regulation, the Solidarity and Emergency Aid Reserve (SEAR) is split as of 1 January 2024 into two separate instruments:
- The European Solidarity Reserve, which can be mobilised up to a maximum amount of EUR 1 016 million per year in 2018 prices, or EUR 1 167,1 million at current prices for 2025; and
- The Emergency Aid Reserve, which can be mobilised up to a maximum amount of EUR 508 million per year in 2018 prices, or EUR 583,5 million at current prices for 2025.
For both instruments, any portion of the unused amount of the previous year can be carried over to the following year. The portion of the annual amount stemming from the previous year shall be drawn on first. Any portion of the annual amount from year n which is not used in year n+1 shall be made available to the Flexibility Instrument in the following year.
The table below shows the details of the annual availability of the SEAR and its annual mobilisation for the years 2021 to 2023. The mobilisation at 31 December 2023 is shown for the purpose of the calculation of the Flexibility Instrument (cf. section 3.2.2). The Solidarity and Emergency Aid Reserve has been mobilised in full in 2023 and therefore no amount has lapsed.
The table also shows the details of the annual availability of the European Solidarity Reserve and of the Emergency Aid Reserve for the years 2024-2027.
| Solidarity and Emergency Aid Reserve (SEAR), European Solidarity Reserve and Emergency Aid Reserve - commitments | ||||||||
| EUR million | ||||||||
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total | |
| Solidarity and Emergency Aid Reserve (SEAR) | ||||||||
| Annual amounts in 2018 prices | 1 200,0 | 1 200,0 | 1 200,0 | - | - | - | - | 3 600,0 |
| Annual amounts in current prices | 1 273,5 | 1 298,9 | 1 324,9 | - | - | - | - | 3 897,3 |
| Carried-over from the previous year | 48,0 | 40,8 | - | |||||
| Frontloaded from the following year (EUSF) | - | - | - | |||||
| Annual mobilisation | 1 280,7 | 1 339,7 | 1 324,9 | 3 945,2 | ||||
| Carried-over to the following year | 40,8 | - | - | |||||
| Lapsed | - | - | - | |||||
| European Solidarity Reserve | ||||||||
| Annual amounts in 2018 prices | 1 016,0 | 1 016,0 | 1 016,0 | 1 016,0 | 4 064,0 | |||
| Annual amounts in current prices | 1 144,2 | 1 167,1 | 1 190,4 | 1 214,2 | 4 715,9 | |||
| Carried-over from the previous year | - | - | - | - | - | |||
| Frontloaded from the following year (EUSF) | - | - | - | - | - | |||
| Annual mobilisation | - | - | - | - | - | |||
| Carried-over to the following year | - | - | - | - | - | |||
| Lapsed | - | - | - | - | - | |||
| Emergency Aid Reserve | ||||||||
| Annual amounts in 2018 prices | 508,0 | 508,0 | 508,0 | 508,0 | 2 032,0 | |||
| Annual amounts in current prices | 572,1 | 583,5 | 595,2 | 607,1 | 2 357,9 | |||
| Carried-over from the previous year | - | - | - | - | - | |||
| Frontloaded from the following year (EUSF) | - | - | - | - | - | |||
| Annual mobilisation | - | - | - | - | - | |||
| Carried-over to the following year | - | - | - | - | - | |||
| Lapsed | - | - | - | - | - |
3. Brexit Adjustment Reserve
In accordance with Article 10 of the amended MFF Regulation, the Brexit Adjustment Reserve can be mobilised subject to and in accordance with the conditions set out in the relevant instrument for a total amount of maximum EUR 4 491,4 million in 2018 prices or EUR 4 886,2 million in current prices over the period 2021-2025.
The profile for the annual amounts for the Brexit Adjustment Reserve is set out in the relevant basic act17, for which a proposal for amendment was tabled on 29 February 202418 to reflect the modification of the maximum amount in the amended MFF Regulation. The table below shows the details of the annual allocation profile of the overall amount in commitment appropriations and, for information, the mobilisation at 31 December 202319.
| Brexit Adjustment Reserve - commitments | |||||||||
| EUR million | |||||||||
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total | ||
| Annual amounts in 2018 prices | 1 600,0 | 1 200,0 | 1 200,0 | 491,4 | 4 491,4 | ||||
| Annual amounts in current prices | 1 697,9 | 1 298,9 | 1 324,9 | 564,4 | 4 886,2 | ||||
| Annual mobilisation | 407,2 | 2 543,9 | 1 363,5 | 4 314,6 |
4. EURI Instrument
In accordance with Article 10a of the amended MFF Regulation, as of 2025, the EURI Instrument may be used to finance, for a given year, part of the costs of the interest and coupon payments due in respect of the funds borrowed on the capital markets in accordance with Article 5(2) of Council Decision (EU, Euratom) 2020/2053.
The EURI Instrument may be mobilised by the European Parliament and the Council in the framework of the budgetary procedure provided for in Article 314 TFEU in accordance with the conditions defined in Article 10a.
In accordance with Article 4(1)(f) of the amended MFF Regulation, this communication provides the calculation of the amount available for the budget year 2025 under the first compartment of the EURI Instrument under paragraph 3(a) of Article 10a20.
Should a decision to mobilise the EURI Instrument be adopted in the framework of the budgetary procedure, this amount should be drawn on first.
| European Union Recovery Instrument (EURI) Instrument – decommitments | |||||||||
| EUR million (current prices) | |||||||||
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total | ||
| Total decommitments1 on outstanding commitments | (1) | 1 607,1 | 2 207,1 | 2 575,9 | 6 453,1 | ||||
| Technical decommitments and decommitments linked to Brexit | (2) | 244,9 | 137,2 | 182,6 | 564,8 | ||||
| Decommitments excluded from the EURI Instrument under Article 15 of the Financial Regulation, of which: | (3) | 148,8 | 95,3 | 72,9 | 317,0 | ||||
| Article 15(1) of the Financial Regulation | - | - | - | - | |||||
| Article 15(2) of the Financial Regulation | - | - | - | - | |||||
| Article 15(3) of the Financial Regulation | 148,8 | 95,3 | 72,9** | 317,0 | |||||
| Decommitments excluded from the EURI Instrument, of which2: | (4) | 0,2 | 732,5 | 890,5 | 1 623,2 | ||||
| Neighbourhood, Development and International Cooperation Instrument - Global Europe (NDICI - Global Europe ) | 0,1 | 712,9 | 887,6 | 1 600,6 | |||||
| European Instrument for International Nuclear Safety Cooperation (INSC) | - | 5,1 | 0,3 | 5,4 | |||||
| Instrument for Pre-accession (IPA III) | - | 14,6 | 1,5 | 16,1 | |||||
| Western Balkan Facility (WBF) | |||||||||
| Overseas Countries and Territories (OCT) (including Greenland) | - | - | 1,1 | 1,1 | |||||
| Total net decommitments available for the EURI Instrument by year of origin | (5) = (1) - (2) - (3) – (4) | 1 213,2 | 1 305,0 | 1 429,9 | - | 3 948,2 | |||
| Total amounts mobilised under the EURI Instrument | (6) | - | - | - | - | ||||
| Total remaining available under the EURI Instrument | (7) = (5) - (6) | (*) | 3 948,2 |
1. In the sense of Article 2(22) of the Financial Regulation. For TAJU 2025, the legal reference for the Financial Regulation is Regulation (EU, Euratom) 2018/1046 (data.europa.eu/eli/reg/2018/1046/2022-12-14). The revised Financial Regulation (recast), for which the adoption process will be finalised in the autumn, is expected to enter into force in September/October 2024 after the adoption of technical adjustment for 2025, and its provisions will be reflected in future exercises taking place after its entry into force.
(2) Basic acts in force which provide for specific rules on making appropriations available again. Future annual technical adjustments may include other basic acts which may include such provisions, such as the European Defence Industry Programme and a framework of measures to ensure the timely availability and supply of defence products (‘EDIP’), see Commission proposal COM(2024)150 final, 5.3.2024.
(*) Yearly mobilisation of the EURI Instrument is contingent on the cost overrun and the other financing sources identified.
(**) Decommitments of year 2023 as proposed in the Draft Budget 2025.
5. Ukraine Reserve
In accordance with Article 10b of the amended MFF Regulation, a new Ukraine Reserve is created for the period 2024 to 2027 with a maximum overall amount of EUR 17 000 million in current prices for that period.
The maximum annual amount mobilised under the Ukraine Reserve in a given year must not exceed EUR 5 000 million in current prices. The unused portion of the annual amount in a given year may be used in the following years, until 2027, in addition to the maximum annual amount for the relevant year, without prejudice to the overall amount of EUR 17 000 million in current prices.
2025 is the second year of the Ukraine Reserve: the maximum annual amount available is therefore EUR 5 000 million in current prices, without prejudice to the possible carry-over of the unused 2024 annual amount. The table below shows the details of the annual amounts for 2024 and 2025, as well as, for information, the amount mobilised to date in 2024 (Amending Budget 1/2024).
| Ukraine Reserve - commitments | ||||||||
| EUR million | ||||||||
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total | |
| Maximum annual amounts in current prices, Maximum total amount 2024-2027 | 5 000,0 | 5 000,0 | 5 000,0 | 5 000,0 | 17 000,0 | |||
| Carried-over from the previous years | - | 232,5 | ||||||
| Annual mobilisation | 4 767,5 | |||||||
| Possible carry over to following years | 232,5 |
2. Non-thematic Special Instruments
1. Single Margin Instrument
3.2.1.1. Amount of commitment appropriations available under the Single Margin Instrument part 11(1)(a)
In accordance with Article 4(1)(c) of the MFF Regulation, the Commission shall calculate and communicate, as part of the annual technical adjustment of the MFF, the amount available in commitment appropriations under the Single Margin Instrument (SMI) as referred to in point (a) of the first subparagraph of Article 11(1). This amount is calculated for the first time in this communication.
Article 11(1)(a) of the MFF Regulation provides that margins left available below the MFF ceilings for commitment appropriations of year n-1 will be made available over and above the MFF ceilings for commitment appropriations for the years 2023 to 2027.
In the final annual EU budget for 2023, the margin left available under the commitment ceiling amounts to EUR 561,3 million in current prices. The commitments on Special Instruments (including the mobilisation of the SMI parts 11(1)(a) and 11(1)(c)) are not taken into account as they are entered in the budget over and above the MFF ceilings in accordance with Article 2(2) of the MFF Regulation.
According to Article 4(2) of the MFF Regulation, the 2% annual fixed deflator shall be used for the calculation of the technical adjustment. The amount of the remaining margin from 2023 which shall be made available for 2024 corresponds to EUR 561,3 million in current prices in 2023 or EUR 572,5 million in current prices in 2024. In case it is not used in 2024, the SMI available in 2025 will therefore be equal to EUR 584,0 million (in current prices in 2025).
The table below shows the details of the calculation of the SMI originating from 2023.
* -including DABs N°1-4
The table below shows the details of the availabilities and the use of the SMI since 2021 up to budget 2024 as adopted on 23 November 2023:
| EUR million | 2021 | 2022 | 2023 | 2024 |
| Commitment margin available at year-end (confirmed by annual technical adjustment) | 628,966 | 705,426 | 561,285 | |
| Annual SMI art. 11(1)(a) available | 641,545 | 1 373,910 | 1 688,300 | |
| SMI art. 11(1)(a) from 2021 | 641,545 | 654,376 | 381,864 | |
| SMI art. 11(1)(a) from 2022 | 719,534 | 733,925 | ||
| SMI art. 11(1)(a) from 2023 | 572,511 | |||
| Annual use of SMI art. 11(1)(a) | 0,000 | 280,000 | 586,172 | |
| SMI art. 11(1)(a) from 2021 | 0,000 | 280,000 | 381,864 | |
| SMI art. 11(1)(a) from 2022 | 204,308 | |||
| SMI art. 11(1)(a) from 2023 | ||||
| Remaining SMI art. 11(1)(a) at year-end | 641,545 | 1 093,910 | 1 102,128 | |
| SMI art. 11(1)(a) from 2021 | 641,545 | 374,376 | - | |
| SMI art. 11(1)(a) from 2022 | 719,534 | 529,617 | ||
| SMI art. 11(1)(a) from 2023 | 572,511 |
3.2.1.2. Total maximum amounts in commitments and payments that may be mobilised under the Single Margin Instrument parts 11(1)(a) and 11(1)(c).
The total maximum amount referred to in point (a) of the first subparagraph of Article 11(2) is 0,04% of the EU GNI, that is equivalent to EUR 7 369,8 million in 2025.
The total maximum amount referred to in point (b) of the first subparagraph of Article 11(2) is 0,03% of the EU GNI, that is equivalent to EUR 5 527,4 million in 2025.
2. Flexibility Instrument
According to Article 12 of the amended MFF Regulation, the Flexibility Instrument can be mobilised as of 1 January 2024 up to a maximum annual amount of EUR 1 346 million in 2018 prices, or EUR 1 546,1 million in current prices for 2025. Any portion of the unused annual amounts of the previous two years may be carried over.
In addition, according to Article 4(1)(g) refering to Article 12(1), second subparagraph, ‘each year the annual amount available for the Flexibility Instrument shall be increased by an amount equivalent to the portions of the annual amounts for the European Solidarity Reserve and the Emergency Aid Reserve which have lapsed in the previous year in accordance with Article 9’. The Solidarity and Emergency Aid Reserve has been mobilised in full in 2023 and therefore no amount has lapsed.
The table below details the annual availabilities of the Flexibility Instrument and, for information, the mobilisation commitment appropriations up to budget 2024 as adopted on 23 November 202321.
| Flexibility Instrument | ||||||||
| EUR million | ||||||||
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total | |
| Annual amounts in 2018 prices | 915,0 | 915,0 | 915,0 | 1 346,0 | 1 346,0 | 1 346,0 | 1346,0 | 8 129,0 |
| Annual amounts in current prices | 971,0 | 990,4 | 1 010,2 | 1 515,8 | 1 546,1 | 1 577,1 | 1 608,6 | 9 219,3 |
| Increased with lapsed amount of SEAR (ESR+EAR) | ||||||||
| Carried-over from the previous year | - | 208,6 | 830,6 | 605,1 | ||||
| Annual mobilisation | 762,4 | 368,4 | 1 235,7 | 1 635,5 | 4 002,1 | |||
| Carried-over to the following year | 208,6 | 830,6 | 605,1 | |||||
| Lapsed | - | - | - |
The payment schedule of the mobilisations of the Flexibility Instrument up to the adopted budget 2024 as well as of outstanding amounts stemming from mobilisations under the 2014-2020 multiannual financial framework is detailed in the following table.
| Flexibility Instrument - payment profile (current prices) | ||||||||
| EUR million | ||||||||
| Mobilisation origin | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Total |
| MFF 2014-2020 | 583,0 | 207,1 | 122,2 | - | - | - | - | 912,3 |
| 2021 | 703,5 | 40,9 | 10,3 | 7,6 | - | - | - | 762,4 |
| 2022 | 219,2 | 62,7 | 49,8 | 36,7 | - | - | 368,4 | |
| 2023 | 752,9 | 279,0 | 120,6 | 83,2 | - | 1 235,7 | ||
| 2024 | 1 398,0 | 107,6 | 83,7 | 46,3 | 1 635,5 | |||
| Total | 1 286,6 | 467,2 | 948,1 | 1 734,4 | 265,0 | 166,9 | 46,3 | 4 914,4 |
4. Summary table and conclusions
The tables below summarise the changes to the ceilings for commitment and payment appropriations in the multiannual financial framework based on Articles 2(1), 5 and 11(1)(b) of the MFF Regulation in current and 2018 prices as included in this Communication:
| EUR million, current prices | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2021-2027 |
| 1. Single Market, Innovation and Digital | 721 | 721 | ||||||
| 2. Cohesion, Resilience and Values | 822 | 822 | ||||||
| 2a. Economic, social and territorial cohesion | ||||||||
| 2b. Resilience and Values | 822 | 822 | ||||||
| 3. Natural Resources and Environment | ||||||||
| of which: Market related expenditure and direct payments | ||||||||
| 4. Migration and Border Management | 181 | 181 | ||||||
| 5. Security and Defence | ||||||||
| 6. Neighbourhood and the World | ||||||||
| 7. European Public Administration | ||||||||
| of which: Administrative expenditure of the institutions | ||||||||
| Total change in commitment appropriations | 1 724 | 1 724 | ||||||
| Total change in payment appropriations | -6 522 | 1 724 | 3 460 | 3 530 | 2 192 |
| EUR million, 2018 prices | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2021-2027 |
| 1. Single Market, Innovation and Digital | 627 | 627 | ||||||
| 2. Cohesion, Resilience and Values | 716 | 716 | ||||||
| 2a. Economic, social and territorial cohesion | ||||||||
| 2b. Resilience and Values | 716 | 716 | ||||||
| 3. Natural Resources and Environment | ||||||||
| of which: Market related expenditure and direct payments | ||||||||
| 4. Migration and Border Management | 157 | 157 | ||||||
| 5. Security and Defence | ||||||||
| 6. Neighbourhood and the World | ||||||||
| 7. European Public Administration | ||||||||
| of which: Administrative expenditure of the institutions | ||||||||
| Total change in commitment appropriations | 1 500 | 1 500 | ||||||
| Total change in payment appropriations | -5 907 | 1 500 | 2 954 | 2 954 | 1 500 |
1as last amended by Council Regulation (EU, Euratom) No 2024/765 of 29 February 2024, OJ L series, 2024/765, 29.2.2024, p.1.
2 European Commission, European Economic Forecast Spring 2024: European Economic Forecast. Spring 2024 - European Commission (europa.eu); https://economy-finance.ec.europa.eu/publications/european-economic-forecast-spring-2024_en
3 OJ L, 2024/765, 29.2.2024
4OJ L 424, 15.12.2020, p. 1.
5Council 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, OJ L 433I, 22.12.2020, p. 23.
6 The specific margin under the temporary increase of the own resources ceiling corresponding to 0,60% of the sum of all the Member States’ GNIs will depend on the expenditure authorised for 2024 in relation to liabilities under the European Union Recovery Instrument and the corresponding own resources to finance it.
7In accordance with Article 4(4) of the MFF Regulation, the MFF ceiling for payment appropriations and the margins for the year 2021, 2022 and 2023 are not further adjusted following the technical adjustment for 2021 (communicated to the European Parliament and the Council on 18.12.2020 (COM(2020)848 final)), 2022 (communicated to the European Parliament and the Council on 07.06.2021 (COM(2021)365 final)), 2023 (communicated to the European Parliament and the Council on 07.06.2022 (COM(2022)266 final)) and 2024 (communicated to the European Parliament and the Council on 29.02.2024 (COM(2024)110 final)).
8This percentage is calculated by subtracting the average of the annual MFF ceilings for payment appropriations for each year of the period 2021-2027 (namely 1,01% of the sum of all the Member States’ GNIs) from the own resources ceiling for payment appropriations of 2.00% of the sum of all the Member States’ GNIs, applicable throughout the whole period 2021–2027.
9 COM(2024)110 final of 29.02.2024
10 Regulation (EU) 2021/2115 of the European Parliament and the Council of 2 December 2021 establishing rules on support for strategic plans to be drawn up by Member States under the Common agricultural policy (CAP Strategic Plans) and financed by the European Agricultural Guarantee Fund (EAGF) and by the European Agricultural Fund for Rural Development (EAFRD) and repealing Regulations (EU) No 1305/2013 (EU) No 1307/2013.
11 Council Regulation (EC) No 1/2003 of 16 December 2002 on the implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty, OJ L 1, 4.1.2003, p. 1.
12 Council Regulation (EC) No 139/2004 of 20 January 2004 on the control of concentrations between undertakings (the EC Merger Regulation), OJ L 24, 29.1.2004, p. 1.
13 Based on the 2022 provisional annual accounts (Articles 420 and 424) after deduction of the amount collected for the year n-1 referred to in Article 141(1) of 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.
14 The amount for the heading with highest share is established as the difference between the total adjustment and the sum of the amounts for all other headings in order to avoid rounding discrepancies.
15 Regulation (EU) 2021/691 of the European Parliament and of the Council of 28 April 2021 on the European Globalisation Adjustment Fund for Displaced Workers (EGF) and repealing Regulation (EU) No 1309/2013, OJ L 153, 3.5.2021, p. 48.
16 In accordance with the MFF Regulation the conversion is based on the 2% fixed annual deflator. The result in current prices is expressed in millions and is rounded to three decimal digits. This is a horizontal approach applicable to all special instruments.
17 Regulation (EU) 2021/1755 of the European Parliament and of the Council of 6 October 2021 establishing the Brexit Adjustment Reserve, OJ L 357, 8.10.2021, p. 1.
18 Proposal for a Regulation of the European parliament and of the Council amending Regulations (EU) 2021/522, (EU) 2021/1057, (EU) 2021/1060, (EU) 2021/1139, (EU) 2021/1229, and (EU) 2021/1755 as regards the changes to the amounts of funds for certain programmes and funds, COM(2024)100 Final, 29.02.2024.
19 Following the adoption of Regulation (EU) 2023/435 amending Regulation (EU) 2021/241 as regards REPowerEU chapters in recovery and resilience plans and amending Regulations (EU) 1303/2013, (EU) 2021/1060 and (EU) 2021/1755, and Directive 2003/87/EC (OJ L 63, 28.02.2023, p.
1), Member States were allowed to voluntarily transfer all or part of their provisional allocation from the resources of the Brexit Adjustment Reserve to the Recovery and Resilience Facility. Based on the requests submitted by Member States, the total amount to be transferred from the Brexit Adjustment Reserve to the Recovery and Resilience Facility is EUR 2,1 billion.
20 Article 10a(3)(a) states: “an amount equivalent to decommitments of appropriations, other than external assigned revenue, made cumulatively since 2021, which were not mobilised under this instrument in the previous years, with the exclusion of the amounts of decommitments made available again in accordance with the provisions of Article 15 of the Financial Regulation and specific rules on making appropriations available again as referred to in the relevant basic acts”.
21OJ L 52, 23.2.2023, p. 1.
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