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| dossier | COM(2020)289 - Communication from the commission to the European parliament, the council and the court of auditors annual accounts of the ... |
|---|---|
| document | COM(2020)289   |
| datum | 26 juni 2020 |
Annual accounts of the European Commission 2019
arrangement that is structured through a separate vehicle and whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Participations in joint ventures are accounted for using the equity method (see note 1.5.4). A joint operation is a joint arrangement whereby the parties that have joint control of the arrangements have rights to the assets, and obligations for the liabilities, related to the arrangement. Participations in joint operations are accounted for by recognising in the EU’s financial statements its assets and liabilities, revenue and expense, as well as its share of assets, liabilities, revenue and expense jointly held or incurred.
Associates
Associates are entities over which the EU has, directly or indirectly, significant influence but not exclusive or joint control. It is presumed that significant influence exists if the EU holds directly or indirectly 20 % or more of the voting rights. Participations in associates are accounted for using the equity method (see note 1.5.4).
Non-consolidated entities the funds of which are managed by the Commission
The funds of the Joint Sickness Insurance Scheme for staff of the EU, the European Development Fund and the Participants Guarantee Fund are managed by the Commission on their behalf. However, since these entities are not controlled by the EU, they are not consolidated in its financial statements.
1.4. BASIS OF PREPARATION
Financial statements are presented annually. The accounting year begins on 1 January and ends on 31 December.
1.4.1. Currency and basis for conversion
Functional and reporting currency
The financial statements are presented in millions of euros, unless stated otherwise, the euro being the EU’s functional currency.
Transactions and balances
Foreign currency transactions are translated into euros using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the re-translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of financial performance. Translation differences on non-monetary financial instruments classified as available for sale financial assets are included in the fair value reserve.
Different conversion methods apply to property, plant and equipment and intangible assets, which retain their value in euros at the rate that applied at the date when they were purchased.
Year-end balances of monetary assets and liabilities denominated in foreign currencies are converted into euros on the basis of the European Central Bank (ECB) exchange rates applying on 31 December:
Annual accounts of the European Commission 2019
Euro exchange rates
| Currency | 31.12.2019 |
| BGN | 1.9558 |
| CZK | 25.4080 |
| DKK | 7.4715 |
| GBP | 0.8508 |
| HRK | 7.4395 |
| HUF | 330.5300 |
31.12.2018 Currency
1.9558 PLN
31.12.2019 31.12.2018
25.7240 RON
7.4673 SEK
0.8945 CHF
7.4125 JPY
320.9800 USD
4.2568
4.783
10.4468
1.0854
121.9400
1.1234
4.3014
4.6635
10.2548
1.1269
125.8500
1.145
1.4.2. Use of estimates
In accordance with IPSAS and generally accepted accounting principles, the financial statements necessarily include amounts based on estimates and assumptions by management based on the most reliable information available. Significant estimates include, but are not limited to: amounts for employee benefit liabilities, financial risk of accounts receivable and the amounts disclosed in the notes concerning financial instruments, accrued revenue and charges, provisions, degree of impairment of intangible assets and property, plant and equipment, net realisable value of inventories, contingent assets and liabilities. Actual results could differ from those estimates. Changes in estimates are reflected in the period in which they become known, if the change affects the period only, or that period and future periods, if the change affects both.
1.5. BALANCE SHEET
1.5.1. Intangible assets
An intangible asset is an identifiable non-monetary asset without physical substance. An asset is identifiable if it is either separable (i.e. it is capable of being separated or divided from the entity, e.g. by being sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract, identifiable asset or liability, regardless of whether the entity intends to do so), or arises from binding arrangements (including rights from contracts or other legal rights), regardless of whether those rights are transferable or separable from the entity or from other rights and obligations).
Acquired intangible assets are stated at historical cost less accumulated amortisation and impairment losses. Internally developed intangible assets are capitalised when the relevant criteria of the EU Accounting Rules are met and the expenses relate solely to the development phase of the asset. The capitalisable costs include all directly attributable costs necessary to create, produce, and prepare the asset to be capable of operating in the manner intended by management. Costs associated with research activities, non-capitalisable development costs and maintenance costs are recognised as expenses as incurred.
Intangible assets are amortised on a straight-line basis over their estimated useful lives (3 to 11 years). The estimated useful lives of intangible assets depend on their specific economic lifetime or legal lifetime determined by an agreement.
1.5.2. Property, plant and equipment
All property, plant and equipment are stated at historical cost less accumulated depreciation and impairment losses. Cost includes expenditure that is directly attributable to the acquisition, construction or transfer of the asset.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits or service potential associated with the item will flow to the EU and its cost can be measured reliably. Repairs and maintenance costs are charged to the statement of financial performance during the financial period in which they are incurred.
Land is not depreciated as it is deemed to have an indefinite useful life. Assets under construction are not
Annual accounts of the European Commission 2019
Type of asset Straight line depreciation rate
Buildings
Space assets
Plant and equipment
Furniture and vehicles
Computer hardware
Other
4 % to 10 %
8 % to 25 %
10 % to 25 %
10 % to 25 %
25 % to 33 %
10 % to 33 %
Gains or losses on disposals are determined by comparing proceeds less selling expenses with the carrying amount of the disposed asset and are included in the statement of financial performance.
Leases
A lease is an agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time. Leases are classified as either finance leases or operating leases.
Finance leases are leases where substantially all the risks and rewards incidental to ownership are transferred to the lessee. When entering a finance lease as a lessee, the assets acquired under the finance lease are recognised as assets and the associated lease obligations as liabilities as from the commencement of the lease term. The assets and liabilities are recognised at amounts equal to the fair value of the leased property or, if lower, the present value of the minimum lease payments, each determined at the inception of the lease. Over the period of the lease term, the assets held under finance leases are depreciated over the shorter of the asset’s useful life and the lease term. The minimum lease payments are apportioned between the finance charge (the interest element) and the reduction of the outstanding liability (the capital element). The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability, which is presented as current/non-current, as applicable. Contingent rents are charged as expenses in the period in which they are incurred.
An operating lease is a lease other than a finance lease, i.e. a lease where the lessor retains substantially all the risks and rewards incidental to ownership of an asset. When entering an operating lease as a lessee, the operating lease payments are recognised as an expense in the statement of financial performance on a straight-line basis over the lease term with neither a leased asset nor a leasing liability presented in the statement of financial position.
1.5.3. Impairment of non-financial assets
An impairment is a loss in the future economic benefits or service potential of an asset, over and above the systematic recognition of the loss of the asset's future economic benefits or service potential through amortisation or depreciation (as applicable). Assets that have an indefinite useful life are not subject to amortisation/depreciation and are tested annually for impairment. Assets that are subject to amortisation/depreciation are tested for impairment whenever there is an indication at the reporting date that an asset may be impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable (service) amount. The recoverable (service) amount is the higher of an asset’s fair value less costs to sell and its value in use.
Intangible assets and property, plant and equipment residual values and useful lives are reviewed, and adjusted if appropriate, at least once per year. If the reasons for impairments recognised in previous years no longer apply, the impairment losses are reversed accordingly.
1.5.4. Investments accounted for using the equity method
Participations in associates and joint ventures
Investments accounted for using the equity method are initially recognised at cost, with the initial carrying amount subsequently being increased or decreased to recognise further contributions, the EU’s share of the surplus or deficit of the investee, any impairments and dividends. The initial cost together with all movements give the carrying amount of the investment in the financial statements at the balance
Annual accounts of the European Commission 2019
performance, and its share of investee’s movements in equity is recognised in the reserves within net assets. Distributions received from the investment reduce the carrying amount of the asset.
If the EU's share of deficits of an investment accounted for using the equity method equals or exceeds its interest in the investment, the EU discontinues recognising its share of further losses (‘unrecognised losses’). After the EU’s interest is reduced to zero, additional losses are provided for and a liability is recognised only to the extent that the EU has incurred legal or constructive obligation or made payments on behalf of the entity.
If there are indications of impairment, a write-down to the lower recoverable amount is necessary. The recoverable amount is determined as described under note 1.5.3. If the reason for impairment ceases to apply at a later date, the impairment loss is reversed to the carrying amount that would have been determined had no impairment loss been recognised.
In cases where the EU holds 20 % or more of an investment capital fund, it does not seek to exert significant influence. Such funds are therefore treated as financial instruments and categorised as available for sale financial assets.
Associates and joint ventures classified as minor entities (see note 1.3) are not accounted for under the equity method. EU contributions to those entities are accounted for as an expense of the period.
1.5.5. Financial assets
Classification
The EU classifies their financial assets in the categories ‘financial assets at fair value through surplus or deficit’, ‘loans and receivables’, ‘held-to-maturity investments’ and ‘available for sale financial assets’. The classification of financial instruments is determined at initial recognition and re-evaluated at each balance sheet date.
(i) Financial assets at fair value through surplus or deficit
A financial asset is classified in the category ‘fair value through surplus or deficit’ if acquired principally for the purpose of being sold in the short term, or if so designated by the entity. Derivatives are also presented in this category. Assets in this category are classified as current assets if they are expected to be realised within 12 months of the balance sheet date.
(ii) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when the EU provides money, goods or services directly to a debtor with no intention of trading the receivable, or in case the EU is subrogated to the rights of the original lender following a payment made by the EU under a guarantee contract. Payments due within 12 months of the balance sheet date are classified as current assets. Payments due after 12 months from the balance sheet date are classified as non-current assets. Loans and receivables include term deposits with the original maturity above three months.
(iii) Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the EU has the positive intention and ability to hold to maturity. During this financial year, the EU did not hold any investments in this category.
(iv) Available for sale financial assets
Available for sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories. They are classified as either current or non-current assets, depending on the period of time the EU expects to hold them. Investments in entities that are neither consolidated nor accounted for using the equity method and other equity-type investments (e.g. Risk Capital Operations) are also classified as available for sale financial assets.
Annual accounts of the European Commission 2019
Initial recognition and measurement
Purchases and sales of financial assets classified as ‘at fair value through surplus or deficit, ‘held-to-maturity’ or ‘available for sale’ are recognised on their trade-date - the date on which the EU commits to purchase or sell the asset. Cash equivalents and loans are recognised when cash is deposited in a financial institution or advanced to borrowers. Financial instruments are initially recognised at fair value. For all financial assets not carried at fair value through surplus or deficit, transactions costs are added to the fair value at initial recognition. Financial assets carried at fair value through surplus or deficit are initially recognised at fair value and transaction costs are expensed in the statement of financial performance.
The fair value of a financial asset on initial recognition is normally the transaction price (i.e. the fair value of the consideration received), unless the fair value of that instrument is evidenced by comparison with other observable current market transactions in the same instrument or based on a valuation technique whose variables include only data from observable markets (e.g. in case of some derivative contracts). However, when a long-term loan that carries no interest or an interest below market conditions is granted, its fair value can be estimated as the present value of all future cash receipts discounted using the prevailing market rate of interest for a similar instrument with a similar credit rating.
Loans granted are measured at their nominal amount, which is considered to be the fair value of the loan. The reasoning for this is as follows:
• The ‘market environment’ for EU lending is very specific and different from the capital market used to issue commercial or government bonds. As lenders in these markets have the opportunity to choose alternative investments, the opportunity possibility is factored into market prices. However, this opportunity for alternative investments does not exist for the EU, which is not allowed to invest money on the capital markets; it only borrows funds for the purpose of lending at the same rate. This means that there is no alternative lending or investment option available to the EU for the sums borrowed. Thus, there is no opportunity cost and therefore no basis of comparison with market rates. In fact, the EU lending operation itself represents the market. Essentially, since the opportunity cost ‘option’ is not applicable, the market price does not fairly reflect the substance of the EU lending transactions. Therefore, it is not appropriate to determine the fair value of EU lending with reference to commercial or government bonds.
• Furthermore, as there is no active market or similar transactions to compare with, the interest rate to be used by the EU for fair valuing its lending operations under the EFSM, BOP and other such loans, should be the interest rate charged.
• In addition, for these loans, there are compensating effects between loans and borrowings due to their back-to-back character. Thus, the effective interest for the loan equals the effective interest rate for the related borrowings. The transaction costs incurred by the EU and then recharged to the beneficiary of the loan are directly recognised in the statement of financial performance.
Financial instruments are derecognised when the rights to receive cashflows from the investments have expired or the EU has transferred substantially all risks and rewards of ownership to another party.
Subsequent measurement
a) Financial assets at fair value through surplus or deficit are subsequently carried at fair value. Gains and losses arising from changes in the fair value of the ‘financial instruments at fair value through surplus or deficit’ category are included in the statement of financial performance in the period in which they arise.
b) Loans and receivables are carried at amortised cost using the effective interest method. In the case of loans granted on borrowed funds, the same effective interest rate is applied to both the loans and borrowings since these loans have the characteristics of ‘back-to-back operations’ and the differences between the loan and the borrowing conditions and amounts are not material. The transaction costs incurred by the EU and then recharged to the beneficiary of the loan are directly recognised in the statement of financial performance.
c) Held to maturity assets are carried at amortised cost using the effective interest method. The EU currently holds no held to maturity investments.
Annual accounts of the European Commission 2019
reserve, except for translation differences on monetary assets, which are recognised in the statement of financial performance. When assets classified as available for sale financial assets are derecognised or impaired, the cumulative fair value adjustments previously recognised in the fair value reserve are recognised in the statement of financial performance. Interest on available for sale financial assets calculated using the effective interest method is recognised in the statement of financial performance. Dividends on available for sale equity instruments are recognised when the EU’s right to receive payment is established.
The fair values of quoted investments in active markets are based on current bid prices. If the market for a financial asset is not active (and for unlisted securities and over-the–counter derivatives), the EU establishes a fair value by using valuation techniques. These include the use of recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cashflow analysis, option pricing models and other valuation techniques commonly used by market participants.
Investments in Venture Capital Funds, classified as available for sale financial assets, which do not have a quoted market price in an active market are valued at the attributable net asset value, which is considered as an equivalent of their fair value.
In cases where the fair value of investments in equity instruments that do not have a quoted market price in an active market cannot be reliably measured, these investments are valued at cost less impairment losses.
Impairment of financial assets
A financial asset is impaired and a loss is recognised if, and only if, there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset and that loss event (or events) has an impact on the estimated future cashflows of the financial asset that can be reliably estimated. The EU assesses at each reporting date whether there is objective evidence that a financial asset is impaired.
(a) Assets carried at amortised cost
If there is objective evidence that an impairment loss on loans and receivables or held-to-maturity investments carried at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cashflows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced and the amount of the loss is recognised in the statement of financial performance. If a loan or held-to-maturity investment has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. The calculation of the present value of the estimated future cashflows of a collateralised financial asset reflects the cashflows that may result from foreclosure less costs for obtaining and selling the collateral, whether or not foreclosure is probable. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through the statement of financial performance.
(b) Assets carried at fair value
In the case of equity investments classified as available for sale financial assets, a significant or permanent (prolonged) decline in the fair value of the security below its cost is considered in determining whether the securities are impaired. If any such evidence exists for available for sale financial assets, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in the statement of financial performance – is removed from reserves and recognised in the statement of financial performance. Impairment losses recognised in the statement of financial performance on equity instruments are not reversed through the statement of financial performance. If, in a subsequent period, the fair value of a debt instrument classified as available for sale financial asset increases and the increase can be objectively related to an event occurring after the impairment loss was recognised, the impairment loss is reversed through the statement of financial performance.
1.5.6. Inventories
Annual accounts of the European Commission 2019
labour, other directly attributable costs and related production overheads (based on normal operating capacity). Net realisable value is the estimated selling price in the ordinary course of business, less the costs of completion and selling expenses. When inventories are held for distribution at no charge or for a nominal charge, they are measured at the lower of cost and current replacement cost. Current replacement cost is the cost the EU would incur to acquire the asset on the reporting date.
1.5.7. Pre-financing amounts
Pre-financing is a payment intended to provide the beneficiary with a cash advance, i.e. a float. It may be split into a number of payments over a period defined in the particular contract, decision, agreement or basic legal act. The float or advance is either used for the purpose for which it was provided during the period defined in the agreement or it is repaid. If the beneficiary does not incur eligible expenditure, they have the obligation to return the pre-financing advance to the EU. As the EU retains control over the prefinancing and is entitled to a refund for the ineligible part, the amount is presented as an asset.
Pre-financing is initially recognised on the balance sheet when cash is transferred to the recipient. It is measured at the amount of the consideration given. In subsequent periods pre-financing is measured at the amount initially recognised on the balance sheet less the eligible expenses (including estimated amounts where necessary) incurred during the period.
Interest on pre-financing is recognised as it is earned in accordance with the provisions of the relevant agreement. An estimate of the accrued interest revenue, based on the most reliable information, is made at the year-end and included in the balance sheet.
Other advances to Member States which originate from reimbursement by the EU of amounts paid as advances by the Member States to their beneficiaries (including ‘financial instruments under shared management’) are recognised as assets and presented under the heading ‘Pre-financing’. Other advances to Member States are subsequently measured at the amount initially recognised on the balance sheet less a best estimate of the eligible expenses incurred by final beneficiaries, calculated on the basis of reasonable and supportable assumptions.
The EU contributions to the trust funds of the European Development Fund or other unconsolidated entities are also classified as pre-financing since their purpose is to give a float to the trust fund to allow it to finance specific actions defined under the trust fund’s objectives. The EU contributions to trust funds are measured at the initial amount of the EU contribution less eligible expenses, including estimated amounts where necessary, incurred by the trust fund during the reporting period and allocated to the EU contribution in accordance with the underlying agreement.
1.5.8. Exchange receivables and non-exchange recoverables
The EU Accounting Rules require a separate presentation of exchange and non-exchange transactions. To distinguish between the two categories, the term ‘receivables’ is reserved for exchange transactions, whereas for ‘non-exchange transactions’, i.e. when the EU receives value from another entity without directly giving approximately equal value in exchange, the term ‘recoverables’ is used (e.g. recoverables from Member States related to own resources).
Receivables from exchange transactions meet the definition of financial instruments and are thus classified as loans and receivables and measured accordingly (see note 1.5.5). The financial instruments notes disclosures concerning receivables from exchange transactions include accrued revenue and deferred charges from exchange transactions, as they are not material. A general write-down based on past experience is made for outstanding recovery orders not already subject to a specific write-down.
Recoverables from non-exchange transactions are carried at fair value as at the date of acquisition (adjusted for interest and penalties) less write-down for impairment. A write-down for impairment of recoverables from non-exchange transactions is established when there is objective evidence that the EU will not be able to collect all amounts due according to the original terms of recoverables from non-exchange transactions. The amount of the write-down is the difference between the asset’s carrying amount and the recoverable amount. The amount of the write-down is recognised in the statement of financial performance. A general write-down, based on past experience, is also made for outstanding recovery orders not already subject to a specific write-down. See note 1.5.14 concerning the treatment
Annual accounts of the European Commission 2019
from non-exchange transactions are disclosed together with receivables from exchange transactions where appropriate.
1.5.9. Cash and cash equivalents
Cash and cash equivalents are financial instruments and include cash at hand, deposits held at call or at short notice with banks and other short-term highly liquid investments with original maturities of three months or less.
1.5.10. Employee benefits
The EU provides a set of benefits (emoluments and social security) to employees. For accounting purposes these have to be classified into short-term and post-employment benefits.
Short-term employee benefits
Short-term employee benefits are those benefits due to be settled before twelve months after the end of the reporting period in which employees rendered the service, such as salaries, annual and paid sick leaves, and other short-term allowances. Short-term employee benefits are recognised as an expense when the related service is provided. A liability is recognised for the amount expected to be paid if the EU has a present legal or constructive obligation to pay as a result of past service provided by the employee and the obligation can be estimated reliably.
Post-employment benefits
The EU grants a set of post-employment benefits to employees, which include retirement, invalidity and survival pensions provided under the Pension Scheme of the European Officials (PSEO), as well as medical coverage provided under the Joint Sickness Insurance Scheme (JSIS) (see note 2.9). These benefits are provided under a single plan – although split in two schemes – and they must be treated similarly so as to give a fair presentation of the situation and reflect the economic reality:
i. Pension Scheme of European Officials (PSEO): The benefits granted under this notionally funded1
scheme relate to seniority, invalidity and survival, as well as, family allowances, death before retirement to those employees that work or worked in the EU Institutions, Agencies and other EU bodies or are survivors of deceased officials or pensioners. Staff contribute one third of the expected cost of these benefits from their salaries.
ii. Joint Sickness Insurance Scheme (JSIS): Under this scheme, the EU provides health coverage for
staff of the European Commission, Institutions, Agencies and other EU bodies through the reimbursement of medical expenses. The benefits granted to the ‘inactives’ of this scheme (i.e. pensioners, orphans, etc.) are classified as post-employment benefits.
The EU also provides post-employment benefits to members of the EU institutions via separate pension schemes. These are shown under the heading ‘Other retirement benefit schemes’. Under these schemes the EU provides pension benefits to members of the Commission, Court of Justice and General Court, Court of Auditors, Council, European Parliament, Ombudsman, Data Protection Supervisor, Civil Service Tribunal. The EU provides health coverage to the members of the EU Institutions via the JSIS.
The above post-employment benefits qualify as defined benefit obligations of the EU and are calculated at each reporting date by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets. The calculation of defined benefit obligation is performed annually using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of government bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability.
1 The PSEO is a notional (virtual) fund with defined benefits in which staff’s contributions serve to finance their future pensions. Although there is no actual investment fund, the amount that would have been collected by such a fund is considered to have been invested in the Member States’ long-term bonds and is reflected in the pension liability that
Annual accounts of the European Commission 2019
The post-employment benefits provided to EU staff are incorporated in a single plan comprising both a pension scheme (PSEO) and a sickness insurance scheme (JSIS), with the right to coverage under the JSIS scheme being dependent on having acquired the right to coverage under the PSEO scheme. Under the terms of this single plan, as set out in the Staff Regulation, certain entitlements, such as the right to a deferred and reduced pension under the PSEO scheme, are acquired after 10 years of service. However, the entitlements acquired under the single plan by the employee’s subsequent service are materially higher than those initial entitlements as reflected by subsequent annually accrued pension rights.
Therefore, in order to depict the economic substance of the underlying transaction required by the faithful representation qualitative characteristic of financial reporting as outlined in both EAR 1 and the IPSAS Conceptual Framework, the service cost incurred is accrued on a straight-line basis over staff’s estimated active service period, i.e. the period from the date when service by the employee first leads to benefits under the plan (whether or not the benefits are conditional on further service) until the date when further service by the employee will lead to no material amount of further benefits under the plan, other than from further salary increases. This approach is applied consistently to the benefits provided for under the single plan.
Remeasurements of the net defined benefit liability comprise actuarial gains and losses and the return on plan assets, and are recognised immediately in net assets.
The EU recognises the net interest expense (income) and other expenses related to the defined benefit plans in the statement of financial performance within the caption ‘staff and pension costs’.
When benefits provided are changed or curtailed, the resulting change in benefits that relates to past service or the gain or loss on curtailment is recognised immediately in the statement of financial performance. Gains and losses on settlement are recognised when the settlement occurs. Past service cost is recognised immediately in the statement of financial performance, unless the changes are conditional on the employees remaining in service for a specified period of time.
1.5.11. Provisions
Provisions are recognised when the EU has a present legal or constructive obligation towards third parties as a result of past events, it is more likely than not that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. Provisions are not recognised for future operating losses. The amount of the provision is the best estimate of the expenses expected to be required to settle the present obligation at the reporting date. Where the provision involves a large number of items, the obligation is estimated by weighting all possible outcomes by their associated probabilities (‘expected value’ method).
Provisions for onerous contracts are measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract.
1.5.12. Financial liabilities
Financial liabilities are classified as financial liabilities at fair value through surplus or deficit, financial liabilities carried at amortised cost or as financial guarantee liabilities.
Borrowings are composed of borrowings from credit institutions and debts evidenced by certificates. They are recognised initially at fair value, being their issue proceeds (fair value of consideration received) net of transaction costs incurred, then subsequently carried at amortised cost using the effective interest method; any difference between proceeds, net of transaction costs, and the redemption value is recognised in the statement of financial performance over the period of the borrowings using the effective interest method. In the case of loans granted on borrowed funds, the effective interest method may not be applied to loans and borrowings, based on materiality considerations. The transaction costs incurred by the EU and then recharged to the beneficiary of the loan are directly recognised in the statement of financial performance.
Financial liabilities categorised at fair value through surplus or deficit include derivatives where fair value is negative. They follow the same accounting treatment as financial assets at fair value through surplus
Annual accounts of the European Commission 2019
Financial guarantee liabilities are initially recognised at fair value, being the premium received. Subsequently, financial guarantee liabilities are measured at the higher of the best estimate of the expenses expected to be required to settle the financial guarantee liability and the amount initially recognised less, when appropriate, cumulative amortisation. The EU recognises a financial guarantee liability when it receives consideration for granting of the guarantee, that is at market terms, or when the fair value of the guarantee can be measured reliably. In case no active market for a directly equivalent guarantee contract exists, the EU discloses the guarantee given as a contingent liability (see note 1.7.2) or – when it is more likely than not that an outflow of resources will be required to settle the obligation – the EU recognises a provision (see note 1.5.11).
Financial liabilities are classified as non-current liabilities, except for maturities less than 12 months after the balance sheet date.
EU trust funds that are considered as part of the Commission’s operational activities are accounted for in the Commission accounts and further consolidated in the EU annual accounts. Therefore, contributions from other donors to the EU trust funds fulfil the criteria of revenues from non-exchange transactions under conditions and they are presented as financial liabilities until the conditions attached to the contributions transferred are met, i.e. eligible costs are incurred by the trust fund. The trust fund is required to finance specific projects and return remaining funds at the time of winding-up. At the balance sheet date the outstanding contribution liabilities are measured at contributions received less the expenses incurred by the trust fund, including estimated amounts when necessary. For reporting purposes the net expenses are allocated to the contributions of other donors in proportion to net contributions paid as at 31 December. This allocation of contributions is only indicative. When the trust fund is wound up the actual split of remaining resources will be decided by the trust fund board.
1.5.13. Payables
A significant amount of the payables of the EU are unpaid cost claims from beneficiaries of grants or other EU funding (non-exchange transactions). They are recorded as payables for the requested amount when the cost claim is received. Upon verification and acceptance of the eligible costs, the payables are valued at the accepted and eligible amount.
Payables arising from the purchase of goods and services are recognised at invoice reception for the original amount and corresponding expenses are entered in the accounts when the supplies or services are delivered and accepted by the EU.
1.5.14. Accrued and deferred revenue and charges
Transactions and events are recognised in the financial statements in the period to which they relate. At year-end, if an invoice is not yet issued but the service has been rendered, the supplies have been delivered by the EU or a contractual agreement exists (e.g. by reference to a treaty), an accrued revenue will be recognised in the financial statements. In addition, at year-end, if an invoice is issued but the services have not yet been rendered or the goods supplied have not yet been delivered, the revenue will be deferred and recognised in the subsequent accounting period.
Expenses are also accounted for in the period to which they relate. At the end of the accounting period, accrued expenses are recognised based on an estimated amount of the transfer obligation of the period. The calculation of accrued expenses is done in accordance with detailed operational and practical guidelines issued by the Commission which aim at ensuring that the financial statements provide a faithful representation of the economic and other phenomena they purport to represent. By analogy, if payment has been made in advance for services or goods that have not yet been received, the expense will be deferred and recognised in the subsequent accounting period.
Annual accounts of the European Commission 2019
1.6. STATEMENT OF FINANCIAL PERFORMANCE
1.6.1. Revenue
REVENUE FROM NON-EXCHANGE TRANSACTIONS
The vast majority of the EU’s revenue relates to non-exchange transactions:
GNI based resources and VAT resources
Revenue is recognised for the period for which the Commission sends out a call for funds to the Member States claiming their contribution. They are measured at their ‘called amount’. As VAT and GNI resources are based on estimates of the data for the budgetary year concerned, they may be revised as changes occur until the final data are issued by the Member States. The effect of a change in estimate is included when determining the net surplus or deficit for the period in which the change occurred.
Traditional own resources
Recoverables from non-exchange transactions and related revenues are recognised when the relevant monthly ‘A’ statements (including duties collected and amounts due that are guaranteed and not contested) are received from the Member States. At the reporting date, revenue collected by the Member States for the period but not yet paid to the Commission is estimated and recognised as accrued revenue. The quarterly ‘B’ statements (including duties neither collected nor guaranteed, as well as guaranteed amounts that have been contested by the debtor) received from the Member States are recognised as revenue less the collection costs to which they are entitled. In addition, a value reduction is recognised for the amount of the estimated recovery gap.
Fines
Revenue from fines is recognised when the EU’s decision imposing a fine has been taken and it is officially notified to the addressee. After the decision to impose a fine, the undertakings have two months from the date of notification:
a) either to accept the decision, in which case they must pay the fine within the time limit laid down and the amount is definitively collected by the EU; or
b) not to accept the decision, in which case they lodge an appeal under EU law.
Even if appealed, the fine must be paid within the time limit of three months laid down as the appeal does not have suspensory effect (Article 278 TFEU). The cash received is used to clear the recoverable. However, subject to the agreement of the Commission’s Accounting Officer, the undertaking may present a bank guarantee for the amount instead. In that case the fine remains as a recoverable. If neither cash nor a guarantee is received and there are doubts about the undertaking’s solvency, a value reduction on the entitlement is recognised.
In case the undertaking appeals against the decision, and has already provisionally paid the fine, the amount is disclosed as a contingent liability, or, if it appears probable that the General Court may not rule in favour of the EU, a provision is recognised to cover this risk. If a guarantee had been given instead, the outstanding recoverable is written down as required.
The accumulated interest received by the Commission on the bank accounts where received payments are deposited is recognised as revenue, and any contingent liability is increased accordingly.
Since 2010, all provisionally cashed fines are managed by the Commission in a specifically created fund (BUFI) and invested in financial instruments.
REVENUE FROM EXCHANGE TRANSACTIONS
Revenue from the sale of goods and services is recognised when the significant risk and rewards of ownership of the goods are transferred to the purchaser. Revenue associated with a transaction involving
Annual accounts of the European Commission 2019
Interest revenue and expense
Interest revenue and expense are recognised in the statement of financial performance using the effective interest method. This is a method of calculating the amortised cost of a financial asset or a financial liability and of allocating the interest revenue or interest expense over the relevant period. When calculating the effective interest rate, the EU estimates cashflows considering all contractual terms of the financial instrument (for example prepayment options) but does not consider future credit losses. The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other premiums or discounts.
Once a financial asset or a group of similar financial assets has been written down as a result of an impairment loss, interest revenue is recognised using the rate of interest to discount the future cashflows for the purpose of measuring the impairment loss.
Revenue from dividends
Revenue from dividends and similar distributions is recognised when the right to receive payment is established.
1.6.2. Expenses
Expenses from non-exchange transactions account for the majority of the EU’s expenses. They relate to transfers to beneficiaries and can be of three types: entitlements, transfers under agreement and discretionary grants, contributions and donations.
Transfers are recognised as expenses in the period during which the events giving rise to the transfer occurred, as long as the nature of the transfer is allowed by regulation (Financial Regulation, Staff Regulations, or other regulation) or an agreement has been signed authorising the transfer, any eligibility criteria have been met by the beneficiary, and a reasonable estimate of the amount can be made.
When a request for payment or cost claim is received and meets the recognition criteria, it is recognised as an expense for the eligible amount. At year-end, incurred eligible expenses due to the beneficiaries but not yet reported are estimated and recorded as accrued expenses.
Expenses from exchange transactions arising from the purchase of goods and services are recognised when the supplies are delivered and accepted by the EU. They are valued at their original invoice amount. Furthermore, at the balance sheet date expenses related to the service delivered during the period for which an invoice has not yet been received or accepted are estimated and recognised in the statement of financial performance.
1.7. CONTINGENT ASSETS AND LIABILITIES
1.7.1. Contingent assets
A contingent asset is a possible asset that arises from past events and of which the existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the EU. A contingent asset is disclosed when an inflow of economic benefits or service potential is probable.
1.7.2. Contingent liabilities
A contingent liability is a possible obligation that arises from past events and of which the existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the EU, or a present obligation that arises from past events but is not recognised either because it is not probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation, or in the rare circumstances where the amount of the obligation cannot be measured with sufficient reliability. A contingent liability is disclosed unless the possibility of an outflow of resources embodying economic benefits or service potential is remote.
Annual accounts of the European Commission 2019
1.8. CASHFLOW STATEMENT
Cashflow information is used to provide a basis for assessing the ability of the EU to generate cash and cash equivalents, and its needs to utilise those cashflows.
The cashflow statement is prepared using the indirect method. This means that the economic result for the financial year is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments, and items of revenue or expense associated with investing cashflows.
Cashflows arising from transactions in a foreign currency are recorded in the EU’s reporting currency (Euro), by applying to the foreign currency amount the exchange rate between the euro and the foreign currency at the date of the cashflow.
The cashflow statement reports cashflows during the period classified by operating and investing activities (the EU does not have financing activities).
Operating activities are the activities of the EU that are not investing activities. These are the majority of the activities performed. Loans granted to beneficiaries (and the related borrowings, when applicable) are not considered as investing (or financing) activities as they are part of the general objectives and thus daily operations of the EU.
Investing activities are the acquisition and disposal of intangible assets and property, plant and equipment and of other investments which are not included in cash equivalents. Investing activities do not include loans granted to beneficiaries. The objective is to show the real investments made by the EU.
Annual accounts of the European Commission 2019
2. NOTES TO THE BALANCE SHEET
ASSETS
2.1. INTANGIBLE ASSETS
EUR million
Gross carrying amount at 31.12.2018 333
Additions 71
Disposals (10)
Transfer between asset categories 0
Other changes –
Gross carrying amount at 31.12.2019 394
Accumulated amortisation at 31.12.2018 (165)
Amortisation charge for the year (30)
Amortisation written back 0
Disposals 10
Transfer between asset categories (0)
Other changes –
Accumulated amortisation at 31.12.2019 (185)
NET CARRYING AMOUNT AT 31.12.2019 209
NET CARRYING AMOUNT AT 31.12.2018 168
Annual accounts of the European Commission 2019
2.2. PROPERTY, PLANT AND EQUIPMENT
Gross carrying amount at 31.12.2018
Additions
Disposals
Transfer between asset categories
Other changes
Land and
1 450
10
(0)
4
Space assets
5 259
10
(0)
411
Plant and
266
10
(16)
0
Furniture
69
2
(4)
(0)
Computer
235 15
(24) (0)
161 3
(11) 1
Finance leases
1 548
4
(3)
Assets under
2 759 829
(416) (0)
EUR million
Total
11 747
883
(58)
(0)
(0)
| Gross carrying amount at 31.12.2019 | 1 464 | 5 680 | 260 | 67 | 226 | 154 | 1 549 | 3 172 | 12 572 |
| Accumulated depreciation at 31.12.2018 | (875) | (1 341) | (246) | (58) | (200) | (130) | (798) | - | (3 649) |
| Depreciation charge for the year | (42) | (659) | (10) | (4) | (20) | (9) | (56) | - | (800) |
| Depreciation written back | - | - | - | - | - | - | (0) | - | (0) |
| Disposals | 0 | 0 | 16 | 4 | 24 | 8 | 4 | - | 56 |
| Transfer between asset categories | - | - | - | 0 (58) | 0 (196) | (0) (131) | - | - | 0 |
| Accumulated depreciation at 31.12.2019 | (917) | (2 000) | (240) | (850) | - | (4 392) |
NET CARRYING AMOUNT AT 31.12.2019
NET CARRYING AMOUNT AT 31.12.2018
547
575
3 680
3 918
20
20
9
11
30
35
23
30
699
750
3 172
2 759
8 180
8 098
Other
Annual accounts of the European Commission 2019
2.3. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
The participation of the EU represented by the Commission in the European Investment Fund (EIF) is treated as an associate using the equity method of accounting. At 31 December 2019, the EU holds 29.7 % of the ownership interest in EIF (2018: 29.7 %).
EUR million
Participation at 31.12.2018
Contributions Dividends received Share of net result Share in the net assets
Participation at 31.12.2019
European Investment Fund
591
(3)
53
(49)
591
EIF summarised financial information:
Assets
Liabilities
Revenue
Expenses
Surplus/(deficit)
31.12.2019 Total EIF
2 965 (975)
337 (161)
176
EUR
31.12.2018 Total EIF
2 662 (674)
291 (167)
124
Reconciliation of the above summarised financial information to the carrying amount of the interest held in the EIF is as follows:
Net assets of the associate
EC ownership interests in EIF
31.12.2019
1 990
29.70%
EUR
31.12.2018
1 988
29.70%
Carrying amount
591
591
The Commission has paid-in 20 % of its subscribed shares in the EIF capital at 31 amount uncalled being as follows:
December 2019, the
EUR
Total share capital Paid-in
Total EIF capital
4 500 (900)
EU subscription
1 337 (267)
Uncalled
3 600
1 070
Annual accounts of the European Commission 2019
2.4. FINANCIAL ASSETS
Non-current
Available for sale financial assets
Financial assets at fair value through surplus or deficit
Loans
Current
Available for sale financial assets
Financial assets at fair value through surplus or deficit
Loans
EUR million
31.12.2019 31.12.2018
Total
| 2.4.1 | 13 941 | 12 345 |
| 2.4.2 | 134 | 14 |
| 2.4.3 | 51 352 | 51 559 |
| 65 427 | 63 917 | |
| 2.4.1 | 2 932 | 1 592 |
| 2.4.2 | 3 | 2 |
| 2.4.3 | 1 285 | 2 281 |
| 4 220 | 3 875 | |
| 69 647 | 67 793 |
2.4.1. Available for sale financial assets
BUFI investments
European Bank for Reconstruction and Development
Guarantee Funds for budgetary guarantees:
EFSI Guarantee Fund
Guarantee Fund for external actions
EFSD Guarantee Fund
Financial instruments supported by the EU budget:
Horizon 2020
Connecting Europe Facility
Risk Sharing Finance Facility
EU SME Equity Facilities
European Fund for South East Europe
Risk Capital Operations
Energy Efficiency Finance Facility
Other
Total
Non-current Current
31.12.2019
EUR million
31.12.2018
| 1 863 | 1 888 |
| 188 | 188 |
| 2 051 | 2 076 |
| 6 654 | 5 000 |
| 2 545 | 2 465 |
| 595 | 9 |
| 9 794 | 7 474 |
| 2 455 | 2 031 |
| 699 | 540 |
| 597 | 679 |
| 507 | 464 |
| 166 | 115 |
| 112 | 113 |
| 105 | 101 |
| 387 | 343 |
| 5 028 | 4 386 |
| 16 873 | 13 937 |
| 13 941 | 12 345 |
| 2 932 | 1 592 |
2.4.2. Financial assets at fair value through surplus or deficit
Foreign currency forward contract Guarantee on equity portfolio
Total
Non-current
393 1 439
3 134
1 832
137
1 439
134
EUR million
| Type of derivative | 31.12.2019 | 31.12.2018 |
| amount Fair value | Notional amount |
476 674
1 150
674
2 14
16
14
Annual accounts of the European Commission 2019 Fair value hierarchy of financial assets measured at fair value
Level 1: Quoted prices in active markets
Level 2: Observable inputs other than quoted prices Level 3: Valuation techniques with inputs not based on observable market data
EUR million
31.12.2019 31.12.2018
13 949
1 543
1 518
Total
17 010
12 487 275
1 191
13 953
Reconciliation of financial assets measured using valuation techniques with inputs not based on observable market data (level 3)
EUR million
Opening balance at 1.1.2019
Purchases, sales, issues and settlements
Gains or losses for the period in financial income or finance costs
Gains or losses in net assets
Transfers into level 3
Transfers out of level 3
Other
1 191
173
90
71
(8)
Closing balance at 31.12.2019
1 518
2.4.3. Loans
Loans for financial assistance Other loans
Total
Non-current Current
EUR million
31.12.2019 31.12.2018
| 2.4.3.1 | 52 564 | 53 775 |
| 2.4.3.2 | 73 52 637 51 352 | 64 |
| 53 840 | ||
| 51 559 | ||
| 1 285 | 2 281 |
2.4.3.1. Loans for financial assistance
EUR million
| Total at 31.12.2018 | 47 400 | BOP 1 734 | 4 388 | Euratom 254 | Total 53 775 |
| New loans | - | - | 420 | - | 420 |
| Repayments | - | (1 500) | (52) | (40) | (1 592) |
| Exchange differences | - | - | - | - | - |
| Changes in carrying amount | (6) | (33) | (1) | (0) | (40) |
| Impairment | - | - | - | - | - |
| Total at 31.12.2019 | 47 394 | 201 | 4 754 | 214 | 52 564 |
| Non-current | 46 800 | 200 | 4 112 | 178 | 51 290 |
| Current | 594 | 1 | 643 | 35 | 1 273 |
The change in carrying amount corresponds to the change in accrued interests.
Nominal value of loans for financial assistance at 31 December 2019 total EUR 51 941 million (2018: EUR 53 114 million).
Note
Annual accounts of the European Commission 2019 Loans effective interest rates (expressed as a range of interest rates)
Macro Financial Assistance (MFA)
Euratom
Balance of Payment (BOP)
European Financial Stability Mechanism (EFSM)
31.12.2019
0 % - 3.82 %
0.08 % - 5.76 %
2.88 %
0.50 % - 3.75 %
31.12.2018
0 % - 3.82 % 0.08 % - 5.76 % 2.88 % - 3.38 % 0.50 % - 3.75 %
2.4.3.2. Other loans
Loans with special conditions
Total
Non-current Current
31.12.2019
73
73
62 12
EUR million 18 64
31.12.2018
64
37 27
Nominal value of other loans at 31 December 2019 total EUR 680 million (2018: EUR 615 million). Impairment on other loans
Loans with special conditions Subrogated loans
EUR million
31.12.2018 Additions Reversals Write-off Other 31.12.2019
8 579
2 75
10 658
Total
587
77
4
668
4
Annual accounts of the European Commission 2019
2.5. PRE-FINANCING
Non-current
Pre-financing
Other advances to Member States
Contribution to Trust Funds
Current
Pre-financing
Other advances to Member States
Total
2.5.1 2.5.2
EUR million
31.12.2019 31.12.2018
| 2.5.1 | 21 906 | 21 615 |
| 2.5.2 | 4 045 | 4 122 |
| 60 | 71 | |
| 26 011 | 25 807 |
22 978 2 892
25 870 51 881
22 106 2 396
24 502 50 309
2.5.1. Pre-financing
EUR million
Gross Cleared via Net amount Gross Cleared via Net amount
amount accruals at 31.12.2019 amount accruals at 31.12.2018
Shared Management
EAFRD & other rural
development instruments
ERDF & CF
ESF
Other
Direct Management
Implemented by: Commission
EU executive agencies Trust funds
Indirect Management
Implemented by:
Other EU agencies &
bodies
Third countries
International
organisations
Other entities
Total
Non-current Current
3 193
17 985 6 830 3 549
13 162
16 522
858
4 038
1 491
8 289
10 574
(3 540) (1 530) (1 463)
(8 633)
(10 339)
(665)
(3 158)
(861)
(5 317)
(6 104)
86 493 (41 609)
21 906 64 587
(41 609)
| 3 193 | 3 743 |
| 14 444 | 18 088 |
| 5 301 | 6 548 |
| 2 086 | 4 684 |
| 4 529 | 12 827 |
| 6 184 | 15 012 |
| 194 | 585 |
| 880 | 3 830 |
| 630 | 1 546 |
| 2 972 | 7 684 |
| 4 471 | 9 107 |
| 44 884 | 83 655 |
| 21 906 | 21 615 |
| 22 978 | 62 040 |
(3 461) (1 147) (2 498)
(8 523)
(9 540)
(432)
(2 975)
(879)
(5 053)
(5 426)
(39 933)
(39 933)
3 743
14 627 5 401 2 186
4 304
5 472 152
856 667
2 631
3 681
43 721
21 615
22 106
2.5.2. Other advances to Member States
Advances to Member States for financial instruments under shared management Aid Schemes
Total
Non-current
31.12.2019
3 304 3 634
6 937
___
4 045
EUR million
31.12.2018
3 675 2 843
6 518
4 122
Note
Annual accounts of the European Commission 2019
2.6. EXCHANGE RECEIVABLES AND NON-EXCHANGE RECOVERABLES
Non-current
Recoverables from non-exchange transactions Receivables from exchange transactions
Current
Recoverables from non-exchange transactions Receivables from exchange transactions
Total
2.6.1 2.6.2
2.6.1 2.6.2
| EUR million | |
| 31.12.2019 | 31.12.2018 |
| 2 436 | 409 |
| 1 150 | 6 |
| 3 585 | 415 |
| 19 172 | 22 075 |
| 816 | 1 828 |
| 19 988 | 23 903 |
| 23 573 | 24 318 |
2.6.1.
Recoverables from non-exchange transactions
EUR million
| Non-current | Note | 31.12.2019 | 31.12.2018 |
| Member States | 2.6.1.1 | 2 422 | 397 |
| Other recoverables | 14 2 436 | 12 | |
| 409 | |||
| Current | |||
| Member States | 2.6.1.1 | 6 117 | 10 836 |
| Competition fines | 2.6.1.2 | 11 301 | 9 727 |
| Accrued income and deferred charges | 2.6.1.3 | 1 581 | 1 291 |
| Other recoverables | 173 19 172 21 607 | 222 | |
| 22 075 | |||
| Total | 22 485 |
Note
Annual accounts of the European Commission 2019 2.6.1.1. Recoverables from Member States
EUR million
31.12.2019 31.12.2018
TOR A accounts
TOR separate accounts
Own resources to be received
Impairment
Other
Own resource recoverables
European Agricultural Guarantee Fund (EAGF)
European Agricultural Fund for Rural Development (EAFRD) and other rural
development instruments
Impairment
EAGF and rural development recoverables
Pre-financing recovery
VAT paid and recoverable
Other recoverables from Member States
Total
Non-current Current
| 5 478 1 591 7 (931) | 5 609 1 612 2 758 (991) 86 |
| 6 145 | 9 075 |
| 1 722 879 (822) | 1 708 955 (788) |
| 1 779 | 1 875 |
| 443 | 145 |
| 11 | 12 |
| 161 | 127 |
| 8 539 | 11 232 |
| 2 422 6 117 | 397 10 836 |
2.6.1.2. Recoverables from competition fines
Recoverable from fines gross amount
Provisional payments
Impairment
Total
Non-current Current
31.12.2019
14 606
(3 125)
(180)
11 301
11 301
EUR million
31.12.2018
13 022
(3 131)
(164)
9 727
9 727
2.6.1.3. Accrued income and deferred charges
Other accrued income
Deferred charges relating to non-exchange transactions
Total
Non-current Current
EUR million
31.12.2019 31.12.2018
| 1 502 79 | 1 238 53 |
| 1 581 | 1 291 |
| 1 581 | 0 1 291 |
Annual accounts of the European Commission 2019 2.6.2. Receivables from exchange transactions
Non-current
Late payment interest Other receivables
Current
Customers
Impairment on receivables from customers
Deferred charges relating to exchange transactions
Other
Total
31.12.2019
1 137 13
1 150
205
(148)
142
617
816
1 966
EUR million
31.12.2018
6
181 (141)
157 1 631
1 828
1 834
2.7. INVENTORIES
Scientific materials Other
Total
| EUR million | |
| 31.12.2019 | 31.12.2018 |
| 47 15 62 | 52 16 67 |
2.8. CASH AND CASH EQUIVALENTS
Accounts with Treasuries and Central Banks Current accounts Imprest accounts Transfers (cash in transit)
EUR million
31.12.2019 31.12.2018
Bank accounts for budget implementation
Cash belonging to financial instruments
Cash relating to fines
Cash relating to trust funds
Total
| 15 519 | 12 932 |
| 91 | 79 |
| 7 | 5 |
| 0 | 0 |
| 15 617 | 13 017 |
| 1 567 | 2 377 |
| 1 258 | 1 438 |
| 97 | 114 |
| 18 538 | 16 946 |
6
Annual accounts of the European Commission 2019
LIABILITIES
2.9. PENSION AND OTHER EMPLOYEE BENEFITS
Net employee benefit scheme liability
EUR million
| Pension | Other | Joint | 31.12.2019 31.12.2018 |
| Scheme of | retirement | Sickness | Total Total |
| European | benefit | Insurance | |
| Officials | schemes | Scheme |
Defined Benefit Obligation 83 842 1 446 12 071 97 359 80 160
Plan assets N/A N/A (309) (309) (296)
Net liability 83 842 1 446 11 762 97 050 79 865
Actuarial assumptions - employee benefits
| 2019 | Pension Scheme of European Officials | Joint Sickness Insurance Scheme |
| Nominal discount rate | 1.1% | 1.2% |
| Expected inflation rate | 1.3% | 1.3% |
| Real discount rate | (0.2)% | (0.1)% |
| Expected rate of salary increases | 1.8% | 1.8% |
| Medical cost trend rates | N/A | 3.0% |
| Retirement age | 63/64/66 | 63/64/66 |
| 2018 | ||
| Nominal discount rate | 1.9% | 2.0% |
| Expected inflation rate | 1.4% | 1.5% |
| Real discount rate | 0.5% | 0.5% |
| Expected rate of salary increases | 1.9% | 1.8% |
| Medical cost trend rates | N/A | 3.0% |
| Retirement age | 63/64/66 | 63/64/66 |
Movement in present value of employee benefits defined benefit obligation
| EUR million | |||
| Pension | Other | Joint | Total |
| Scheme of | retirement | Sickness | |
| European | benefit | Insurance | |
| Officials | Schemes | Scheme |
Present value as at 31.12.2018
Recognised in statement of financial performance
Current service cost Interest expense
Recognised in net assets
Remeasurements in employee benefits liabilities Actuarial (gains)/losses from experience
Actuarial (gains)/losses from demographic assumptions Actuarial (gains)/losses from financial assumptions
Other
Benefits paid
70 017
Present value as at 31.12.2019
83 842
1 154
8 990 80 160
| 2 824 | 82 | 277 | 3 183 |
| 1 339 | 20 | 180 | 1 539 |
| 1 910 | 70 | (339) | 1 641 |
| 9 339 | 143 | 3 065 | 12 547 |
| (1 587) | (23) | (101) | (1 711) |
1 446 12 071 97 359
Annual accounts of the European Commission 2019 Movement in present value of plan assets of the Joint Sickness Insurance Scheme
EUR million
Present value as at 31.12.2018
Net movement in plan assets
296
14
Present value as at 31.12.2019
309
Joint Sickness Insurance Scheme sensitivity
A ten basis points change in the assumed medical cost trend rates would have the following effects:
EUR million 2019 2018
Increase 0.1% Decrease 0.1% Increase 0.1% Decrease 0.1%
The aggregate of the current service cost and interest cost components of net periodic post-employment medical costs Defined benefit obligation
8 352
(8) (341)
12 253
(12) (246)
A ten basis points change in the assumed discount rate would have the following effects:
| EUR million | ||
| 2019 Increase 0.1% Decrease 0.1% | 2018 Increase 0.1% Decrease 0.1% |
Defined benefit obligation
(311)
322
(219)
226
A ten basis points change in the expected salary increases rate would have the following effects:
EUR million
2019 2018
Increase 0.1% Decrease 0.1% Increase 0.1% Decrease 0.1%
Defined benefit obligation
(30)
29
(26)
25
A one year change in the assumed retirement age would have the following effects:
Defined benefit obligation
2019 One year increase
(363)
One year decrease
383
One year increase
(91)
EUR million
One year decrease
54
Pension Scheme of European Officials sensitivity
A ten basis points change in the assumed discount rate would have the following effects:
2019 20
se 0.1% Decrease 0.1% Increase 0.1%
(1 797) 1 854 (1 434)
| EUR million | ||
| 2019 Increase 0.1% Decrease 0.1% | 2018 Increase 0.1% Decrease 0.1% |
Defined benefit obligation
1 478
A ten basis points change in the expected salary increases rate would have the following effects:
| EUR million | ||
| 2019 Increase 0.1% Decrease 0.1% | 2018 Increase 0.1% Decrease 0.1% |
Defined benefit obligation
1 774
(1 724)
1 427
(1 388)
A one year change in the assumed retirement age would have the following effects:
Defined benefit obligation
2019 One year increase
(620)
One year decrease
771
2018 One year increase
(573)
EUR million
One year decrease
645
Annual accounts of the European Commission 2019
2.10. PROVISIONS
EUR million
| Amount at | Additional | Unused | Amounts | Transfer | Change in Amount at |
| 31.12.2018 | provisions | amounts reversed | used | between categories | estimation 31.12.2019 |
| Legal cases: | ||||||
| Agriculture | 270 | 439 | - | (269) | - | 440 |
| Other | 11 | 1 | (7) | (1) | - | 5 |
| Nuclear site dismantling | 1 933 | - | - | (34) | 233 | 2 132 |
| Financial | 1 551 | 587 | (1) | (206) | 7 | 1 938 |
| Other | 68 | 28 | (9) | (16) | - | 71 |
| Total | 3 833 | 1 056 | (17) | (526) | - | 240 | 4 586 |
| Non-current | 3 013 | 868 | (1) | (273) | (357) | 239 | 3 490 |
| Current | 820 | 188 | (17) | (252) | 357 | 1 | 1 097 |
Annual accounts of the European Commission 2019
2.11. FINANCIAL LIABILITIES
Non-current
Financial liabilities at amortised cost
Financial liabilities at fair value through surplus or deficit
Current
Financial liabilities at amortised cost
Financial liabilities at fair value through surplus or deficit
Financial guarantee liabilities
Total
Note
2.11.1 2.11.2
2.11.1 2.11.2
EUR million
31.12.2019 31.12.2018
52 757 7
52 764
2 475 15
2 489 55 253
52 351
9
52 360
1 367
4
20
1 390
53 750
2.11.1. Financial liabilities at amortised cost
Borrowings for financial assistance Other financial liabilities
Total
Non-current Current
2.11.1.1 2.11.1.2
EUR million
31.12.2019 31.12.2018
52 564 1 154
53 718
52 351 1 367
53 775
1 456
55 231
52 757 2 475
2.11.1.1. Borrowings for financial assistance
EUR million
| Total at 31.12.2018 | 47 400 | BOP 1 734 | 4 388 | Euratom 254 | Total 53 775 |
| New loans | - | - | 420 | - | 420 |
| Repayments | - | (1 500) | (52) | (40) | (1 592) |
| Exchange differences | - | - | - | - | - |
| Changes in carrying amount | (6) | (33) | (1) | (0) | (40) |
| Total at 31.12.2019 | 47 394 | 201 | 4 754 | 214 | 52 564 |
| Non-current | 46 800 | 200 | 4 112 | 178 | 51 290 |
| Current | 594 | 1 | 643 | 35 | 1 273 |
Borrowings effective interest rates (expressed as a range of interest rates)
Macro Financial Assistance (MFA)
Euratom
Balance of Payment (BOP)
European Financial Stability Mechanism (EFSM)
31.12.2019
0% - 3.82%
0% - 5.68%
2.88%
0.50% - 3.75%
31.12.2018
0 % - 3.82 %
0 % - 5.68 %
2.88 % - 3.38 %
0.50 % - 3.75 %
Note
Annual accounts of the European Commission 2019 2.11.1.2. Other financial liabilities
EUR million
31.12.2019 31.12.2018
Non-current
Finance lease liabilities Buildings paid for in instalments Other
800
210
51
1 061
Current
Finance lease liabilities Buildings paid for in instalments Fines to be reimbursed Other
67 24
1
93
Total
1 154
860 235 141
1 235
64
23
125
9
221
1 456
Finance lease liabilities
EUR million
Future amounts to be paid < 1 year 1 - 5 years > 5 years Total Liability
Land and buildings Other fixed assets
63 5
Total at 31.12.2019
67
Interest element
48
Total future minimum lease payments at 31.12.2019
Total future minimum lease payments at 31.12.2018
115
115
291 10
450
499
710
852 15
| 301 | 499 | 867 |
| 150 | 103 | 301 |
| 451 | 602 | 1 168 |
1 275
2.11.2. Financial liabilities at fair value through surplus or deficit
EUR million
Type of derivative
Guarantee on equity portfolio FX option (put spread)
Total
Non-current Current
31.12.2019
tional amount
752 13
765
148 617
Fair value
10 2
12
9 4
31.12.2018
Notional
Fair amount
536 11
Fair value
20 2
546
82 464
22
7 15
Fair value hierarchy of financial liabilities measured at fair value
Level 1: Quoted prices in active markets
Level 2: Observable inputs other than quoted prices Level 3: Valuation techniques with inputs not based on observable market data
Total
31.12.2019
2 10
12
EUR million
31.12.2018
2 20
22
Annual accounts of the European Commission 2019
2.12. PAYABLES
Gross Amount
Adjustments*
Net Amount at 31.12.2019
Gross Amount
Adjustments*
Estimated non-eligible amounts and pending other advances to Member States.
2.13. ACCRUED CHARGES AND DEFERRED INCOME
EUR million
Net Amount at 31.12.2018
| Cost claims and invoices | ||||||
| received from: | ||||||
| Member States | ||||||
| EAFRD & other rural development instruments | 21 | 20 | 247 | 247 | ||
| ERDF & CF | 8 068 | (2 437) | 5 631 | 10 761 | (1 724) | 9 037 |
| ESF | 2 882 | (558) | 2 325 | 5 195 | (496) | 4 699 |
| Other | 854 | (45) | 809 | 632 | (75) | 557 |
| Private and public entities | 1 562 13 386 | (180) | 1 381 | 1 461 | (179) (2 475) | 1 282 |
| Total costs claims & invoices received | (3 220) | 10 166 | 18 296 | 15 822 | ||
| E AG F | 16 255 | N/A | 16 255 | 14 772 | N/A N/A | 14 772 |
| Own Resources Payables | N/A | - | 769 | 769 | ||
| Sundry Payables | 1 372 | N/A | 1 372 | 1 176 | N/A | 1 176 |
| Total | 31 014 | (3 220) | 27 793 | 35 013 | (2 475) | 32 539 |
EUR million
31.12.2019 31.12.2018
Accrued charges Deferred income Other
Total
66 185
138
52
66 374
62 263
213
24
62 500
The split of accrued charges is as follows:
EAGF
EAFRD and other rural development instruments
ERDF and CF
ESF
Other
EUR million
31.12.2019 31.12.2018
Total
| 28 193 | 29 387 |
| 18 583 | 18 687 |
| 9 525 | 5 863 |
| 3 016 | 2 321 |
| 6 867 | 6 005 |
| 66 185 | 62 263 |
Annual accounts of the European Commission 2019
NET ASSETS
2.14. RESERVES
Fair value reserve Guarantee Fund reserve Other reserves
Total
2.14.1
| EUR million | |
| 31.12.2019 | 31.12.2018 |
| 377 | 229 |
| 2 870 | 2 849 |
| 59 | 108 |
| 3 306 | 3 186 |
2.14.1. Fair value reserve
Movements during the period of fair value reserve related to the available for sale financial assets:
Included in fair value reserve
Included in statement of financial performance
31.12.2019
176 (28)
Total
148
EUR million
31.12.2018
(68) 22
(46)
2.15. AMOUNTS TO BE CALLED FROM MEMBER STATES
EUR million
Amounts to be called from Member States at 31.12.2018
Return of budget surplus to Member States Movement in Guarantee Fund reserve Remeasurements in employee benefits liability Other reserve movements Economic result of the year
Total amounts to be called from Member States at 31.12.2019
68 885
1 803
21
14 073
1
(4 605)
80 179
Note
Annual accounts of the European Commission 2019
3. NOTES TO THE STATEMENT OF FINANCIAL
PERFORMANCE
REVENUE
REVENUE FROM NON-EXCHANGE TRANSACTIONS: OWN RESOURCES
3.1. TRADITIONAL OWN RESOURCES
Customs duties Sugar levies
Total
| EUR million | |
| 2019 | 2018 |
| 21 235 | 22 763 |
| 0 | 4 |
| 21 235 | 22 767 |
REVENUE FROM NON-EXCHANGE TRANSACTIONS: TRANSFERS
3.2. RECOVERY OF EXPENSES
Shared management Direct management Indirect management
Total
| EUR million | |
| 2019 | 2018 |
| 2 547 | 2 116 |
| 65 | 65 |
| 16 | 31 |
| 2 627 | 2 213 |
3.3. OTHER REVENUE FROM NON-EXCHANGE TRANSACTIONS
Contribution of third countries and accession countries
Staff taxes and contributions
Contribution from Member States for external aid
Transfer of assets
Adjustment of provisions
Agricultural levies
Budgetary adjustments
Funding of institutions
Other
Total
| EUR million | |
| 2019 | 2018 |
| 1 451 | 1 347 |
| 966 | 954 |
| 331 | 594 |
| 47 | 85 |
| 16 | 97 |
| 2 | 4 |
| (1 719) | (726) |
| (3 725) | (3 493) |
| 343 | 465 |
| (2 288) | (674) |
Annual accounts of the European Commission 2019
REVENUE FROM EXCHANGE TRANSACTIONS
3.4. FINANCIAL REVENUE
Interest on:
Late payments
Loans
Other Premium on financial guarantee liability Dividend
Financial revenue from financial assets or liabilities at fair value through surplus or deficit
Realised gains on sale of available for sale financial assets Other
Total
2019
EUR million
2018
| 133 | 1 458 |
| 1 178 | 1 259 |
| 67 | 63 |
| 193 | 121 |
| 29 | 103 |
| 125 | 29 |
| 69 | 23 |
| 3 | 48 |
| 1 798 | 3 103 |
3.5. OTHER REVENUE FROM EXCHANGE TRANSACTIONS
Foreign exchange gains
Share of net result of EIF
Fee and premium revenue related to financial instruments
Sales of goods
Fixed assets related revenue
Other
Total
2019
EUR million
2018
| 335 | 318 |
| 53 | 37 |
| 43 | 54 |
| 16 | 18 |
| 4 | 7 |
| 274 | 281 |
| 725 | 716 |
EXPENSES
3.6. SHARED MANAGEMENT
Implemented by Member States
European Agricultural Guarantee Fund
European Agricultural Fund for Rural Development and other rural
development instruments
European Regional Development Fund and Cohesion Fund
European Social Fund
Other
Total
2019
EUR million
2018
| 43 951 | 43 527 |
| 13 541 | 13 149 |
| 35 178 | 30 230 |
| 11 218 | 11 935 |
| 2 608 | 2 826 |
| 106 495 | 101 666 |
Annual accounts of the European Commission 2019
3.7. DIRECT MANAGEMENT
Implemented by the Commission Implemented by EU Executive Agencies Implemented by Trust funds
Total
| EUR million | |
| 2019 | 2018 |
| 8 458 | 8 146 |
| 10 095 | 8 962 |
| 412 | 468 |
| 18 965 | 17 576 |
3.8. INDIRECT MANAGEMENT
Implemented by other EU agencies and bodies Implemented by third countries
Implemented by international organisations Implemented by other entities
Total
| EUR million | |
| 2019 | 2018 |
| 3 820 | 3 622 |
| 637 | 679 |
| 3 448 | 3 337 |
| 2 878 | 3 569 |
| 10 783 | 11 208 |
3.9. STAFF AND PENSION COSTS
Staff costs Pension costs
Total
| EUR million | |
| 2019 | 2018 |
| 3 442 | 3 328 |
| 4 721 | 4 461 |
| 8 163 | 7 789 |
3.10. FINANCE COSTS
Interest expenses:
Borrowings
Other Finance leases
Impairment losses on available for sale financial assets Impairment loss on loans and receivables
Realised loss on sale of available for sale financial assets Loss on financial assets or liabilities at fair value through surplus or deficit Other
Total
2019
EUR million
2018
| 1 172 | 1 252 |
| 21 | 25 |
| 52 | 56 |
| 19 | 25 |
| 105 | 126 |
| 5 | 20 |
| 57 | 95 |
| 26 | 41 |
| 1 458 | 1 640 |
Annual accounts of the European Commission 2019
3.11. OTHER EXPENSES
Adjustment of provisions
Fixed assets related expenses
Administrative and IT expenses
Funding and contributions to other EU bodies
Foreign exchange losses
Operating lease expenses
Reduction of fines by the Court of Justice
Other
Total
2019
EUR million
2018
| 1 294 | 919 |
| 1 046 | 953 |
| 883 | 831 |
| 491 | 470 |
| 328 | 328 |
| 188 | 195 |
| 91 | 1 |
| 544 | 322 |
| 4 866 | 4 019 |
Expenses relating to research and development are as follows:
Research costs
Non-capitalised development costs
Total
2019
381 69
449
EUR million
2018
373 58
430
Annual accounts of the European Commission 2019
3.12. SEGMENT REPORTING BY MULTI ANNUAL FINANCIAL FRAMEWORK HEADING (MFF)
GNI resources
Traditional own resources
VAT
Fines
Recovery of expenses
Other
Revenue from non-exchange transactions
Financial revenue Other
Revenue from exchange transactions
Smart and
Sustainable growth
Security and citizenship
Global Europe
Administration
1 520
1 202
2 722
423 155
578
1 076 29
1 104
1 (12)
(11)
10 43
54
0 (5)
(5)
22 214
235
11 13
24
0 830
830
0 243
243
Not assigned to MFF headings*
108 820
21 235
18 128
4 291
(4 607)
147 867
1 363 330
1 693
Total expenses
Economic result of the year
* ‘Not assigned to MFF headings’ includes off-budget operations
(69 070) (65 770)
(59 800) (58 707)
(4 194) (4 145)
(9 427) (9 167)
(6 702) (5 629)
(1 538) 148 023
EUR million Total
108 820
21 235
18 128
4 291
2 627
(2 288)
152 813
1 798 725
2 522
| Total revenue | 3 300 | 1 093 | 49 | 260 | 1 073 | 149 561 | 155 335 |
| Expenses implemented by Member States: | |||||||
| EAGF | - | (43 951) | - | - | - | - | (43 951) |
| EAFRD & other rural develop. instruments | - | (13 541) | - | - | - | - | (13 541) |
| ERDF & CF | (35 178) | - | - | - | - | - | (35 178) |
| ESF | (11 218) | - | - | - | - | - | (11 218) |
| Other | (512) | (668) | (1 382) | (46) | - | (0) | (2 608) |
| Implemented by the Commission, executive | |||||||
| agencies and trust funds | (12 763) | (676) | (1 060) | (4 446) | (19) | 0 | (18 965) |
| Implemented by other EU agencies and bodies | (2 799) | (62) | (927) | (32) | - | - | (3 820) |
| Implemented by third countries and | |||||||
| international organisations | (526) | (2) | (242) | (3 314) | (0) | - | (4 085) |
| Implemented by other entities | (2 037) | (1) | (1) | (839) | (0) | - | (2 878) |
| Staff and pension costs | (1 637) | (350) | (444) | (604) | (5 129) | - | (8 163) |
| Finance costs | (113) | (56) | (0) | (9) | (79) | (1 200) | (1 458) |
| Other expenses | (2 287) | (493) | (137) | (136) | (1 475) | (337) | (4 866) |
(150 730) 4 605
and unallocated programmes with individually immaterial amounts.
Annual accounts of the European Commission 2019
4.
CONTINGENT LIABILITIES AND ASSETS
4.1. CONTINGENT LIABILITIES
4.1.1. Budgetary guarantees
| EUR million | ||||||
| 31.12.2019 | Ceiling | 31.12.2018 Signed | Disbursed | |||
| Ceiling | Signed | Disbursed | ||||
| EIB external lending mandate guarantees EFSI guarantee EFSD guarantee | 37 929 25 797 50 | 31 521 21 889 | 20 014 17 634 | 40 417 25 898 | 30 889 19 842 | 20 510 15 764 |
| Total | 63 775 | 53 410 | 37 648 | 66 315 | 50 731 | 36 273 |
4.1.2. Guarantees relating to financial assistance (borrowing and lending activities)
EUR million
| 31.12.2019 | 31.12.2018 | |||||
| Drawn | Undrawn | Total | Drawn | Undrawn | Total | |
| EFSM | 47 394 | - | 47 394 | 47 400 | - | 47 400 |
| BOP | 201 | - | 201 | 1 734 | - | 1 734 |
| MFA | 4 754 | 560 | 5 314 | 4 388 | 980 | 5 368 |
| Euratom | 214 | 200 | 414 | 254 | 200 | 454 |
| Total | 52 564 | 760 | 53 324 | 53 775 | 1 180 | 54 955 |
4.1.3. Guarantees given for EU financial instruments
31.12.2019
Horizon 2020
Risk Sharing Finance Facility
Connecting Europe Facility
Other
Total
EUR million
31.12.2018
| 1 584 | 1 467 |
| 110 | 642 |
| 684 | 579 |
| 38 | 29 |
| 2 416 | 2 717 |
4.1.4. Legal cases
EUR million
31.12.2019 31.12.2018
Fines
Agriculture Cohesion Other
Total
| 3 128 | 3 187 |
| 199 | 653 |
| 341 | 26 |
| 2 123 | 1 823 |
| 5 791 | 5 688 |
Annual accounts of the European Commission 2019
4.2. CONTINGENT ASSETS
EUR million
31.12.2019 31.12.2018
Guarantees received:
Performance guarantees 75 79
Other guarantees 6 7
Other contingent assets 31 25
Total 113 111
Annual accounts of the European Commission 2019
5.
BUDGETARY AND LEGAL COMMITMENTS
Outstanding budgetary commitments not yet expensed Shared management legal commitments under the current MFF pending implementation Significant legal commitments in other areas
Total
EUR million
31.12.2019 31.12.2018
| 5.1 | 249 357 | 234 621 |
| 5.2 | 72 832 | 143 883 |
| 5.3 | 10 227 | 14 592 |
| 332 416 | 393 097 |
5.1. OUTSTANDING BUDGETARY COMMITMENTS NOT YET EXPENSED
Outstanding budgetary commitments not yet expensed
31.12.2019 31.12.2018
249 357
EUR million 2.2018 234 621
5.2. SHARED MANAGEMENT LEGAL COMMITMENTS UNDER THE CURRENT MFF PENDING IMPLEMENTATION
EUR million
| Funds | Financial framework 2014-2020 (A) | Legal commitments according to latest Commission Decision (B) | Budget commitments including decommitments (C) | Legal commitments pending implementation (B-C) |
| European Regional Development Fund and Cohesion Fund | 262 585 | 262 407 | 220 447 | 41 960 |
| European Social Fund | 92 912 | 92 751 | 78 841 | 13 910 |
| European Neighbourhood Policy | ||||
| Instrument | ||||
| Fund for European Aid to the most Deprived | 3 814 | 3 813 | 3 235 | 578 |
HEADING 1B: COHESION POLICY FUNDS
European Agricultural Fund for
Rural Development
European Maritime and Fisheries
Fund
HEADING 2: NATURAL RESOURCES
Asylum and Migration Fund Internal Security Fund
HEADING 3: SECURITY & CITIZENSHIP
Total
| 359 310 | 358 971 | 302 524 | 56 448 |
| 100 079 5 749 | 100 079 5 687 | 85 404 4 828 | 14 675 859 |
| 105 829 | 105 766 | 90 232 | 15 534 |
| 4 575 3 159 7 733 | 4 482 3 095 7 577 | 4 032 2 695 6 727 | 450 401 851 |
| 472 872 | 472 315 | 399 483 | 72 832 |
Note
Annual accounts of the European Commission 2019
5.3. SIGNIFICANT LEGAL COMMITMENTS IN OTHER AREAS
EUR million
31.12.2019 31.12.2018
Connecting Europe Facility
Copernicus
Galileo
Fisheries agreements
Operating lease commitments
Other contractual commitments
Total
5.3.1
| 7 680 | 11 554 |
| 601 | 1 267 |
| 438 | 493 |
| 223 | 46 |
| 844 | 796 |
| 440 | 435 |
| 10 227 | 14 592 |
5.3.1. Operating lease commitments
| EUR million | ||
| Future amounts to be paid | ||
| < 1 year 1- 5 years > 5 years | Total |
Buildings
IT materials and other equipment
Total
139 2
371 5
326
141
376
326
836 8
844
Note
Annual accounts of the European Commission 2019
6.
FINANCIAL INSTRUMENTS DISCLOSURES
6.1. CURRENCY RISKS
Exposure of the EC to currency risk at year-end – net position
31.12.2019 GBP DKK SEK
EUR Other
Financial assets
Available for sale financial assets
Financial assets at fair value
through surplus or deficit
Loans*
Receivables and recoverables
Cash and cash equivalents
577
(393)
17
8
93
62
801 309
17
62 318
9
93 431
16 189
529
49 22 476 15 824
21
7
133
1 563
EUR million
Total
16 873
137
73 23 573 18 538
| 302 | 1 172 | 396 | 533 | 55 068 | 1 723 | 59 194 | |
| Financial liabilities | |||||||
| Financial liabilities at fair value through surplus or deficit | (0) | - | - | - | (10) | (2) | (12) |
| Payables | (3) | (0) | - | (1) | (27 786) | (3) | (27 793) |
| (3) 299 | (0) 1 172 | 396 | (1) 531 | (27 796) 27 272 | (5) 1 717 | (27 806) | |
| Total | 31 388 |
EUR million
31.12.2018 GBP DKK SEK
EUR Other
Total
Financial assets
Available for sale financial assets
Financial assets at fair value
through surplus or deficit
Loans*
Receivables and recoverables
Cash and cash equivalents
Financial liabilities
Financial liabilities at fair value through surplus or deficit Payables
Total
* Excluding back-to-back loans for financial assistance.
If the EUR had strengthened against the currency concerned by 10 % then this would have had the following impact:
| 619 | 57 | 18 | 7 | 13 220 | 17 | 13 937 |
| (475) | - | - | - | 491 | - | 16 |
| 6 | - | - | - | 53 | 5 | 64 |
| - | 4 109 | 98 | 108 | 19 777 | 226 | 24 318 |
| 43 | 1 520 5 686 | 287 403 | 406 522 | 13 197 46 737 (20) | 1 493 1 741 (2) | 16 946 |
| 193 | 55 282 | |||||
| _ | (22) | |||||
| (0) | - | - | - | (32 538) (32 558) 14 179 | (1) (2) 1 738 | (32 539) |
| (0) | - | - | - | (32 561) | ||
| 193 | 5 686 | 403 | 522 | 22 721 |
2019 2018
Economic result
GBP DKK
EUR million
| (10) | (101) | (35) | (48) |
| (5) | (512) | (35) | (47) EUR million |
| Net assets |
2019
(17)
(6)
(2)
(1)
USD
USD
USD
SEK
USD
GBP
SEK
DKK
Annual accounts of the European Commission 2019
If the EUR had weakened against the currency concerned by 10 % then this would have had the following impact:
EUR million
2019 2018
2019 2018
Economic result
GBP DKK
| 12 | 123 | 42 | 58 |
| 6 | 625 | 43 | 57 EUR million |
| Net assets | |||
| SD | GBP | DKK | SEK |
| 20 | 7 | 2 | 1 |
| 16 | 6 | 2 | 1 |
6.2. INTEREST RATE RISK
The following table illustrates the interest rate sensitivity of available for sale financial assets assuming a possible change in interest rates of +/- 100 basis points (1 %).
2019: Available for sale financial assets
2018: Available for sale financial assets
Increase (+) / decrease (-) in basis points
+100 -100 +100 -100
EUR million
Effect on net assets
(395) 426
(303) 325
6.3. CREDIT RISK
Analysis of the age of financial assets that are not impaired
Neither past
Total due nor
impaired
Loans
Receivables and recoverables Financial assets at fair value through surplus or deficit
52 637 23 573
137
52 636 9 018
137
EUR million
Past due but not impaired < 1 year 1-5 years >
1 2 718
11 542
5 years
– 295
| Total at 31.12.2019 | 76 347 | 61 791 | 2 719 | 11 542 | 295 |
| Loans | 53 840 | 53 840 | - | - | - |
| Receivables and recoverables | 24 318 | 14 399 | 6 577 | 3 208 | 134 |
| Financial assets at fair value through surplus or deficit | 16 | 16 | - | - | - |
| Total at 31.12.2018 | 78 174 | 68 254 | 6 577 | 3 208 | 134 |
USD
SEK
Annual accounts of the European Commission 2019 Credit quality of financial assets that are neither past due nor impaired
EUR million
| 31.12.2019 | ||||||
| Available | Financial | Loans | Receivables | Cash | Total | |
| for sale* | assets at | and | ||||
| FVSD** | recoverables | |||||
| Counterparties with | ||||||
| external credit rating | ||||||
| Prime and high grade | 8 013 | 137 | - | 3 589 | 14 534 | 26 273 |
| Upper medium grade | 3 329 | - | 22 998 | 1 434 | 3 443 | 31 204 |
| Lower medium grade | 1 906 | - | 24 711 | 1 864 | 299 | 28 779 |
| Non-investment grade | 216 | - | 4 855 | 477 | 257 | 5 806 |
| 13 464 | 137 | 52 564 | 7 364 | 18 533 | 92 061 | |
| Counterparties without | ||||||
| external credit rating | ||||||
| Debtors without defaults in the past | - | - | 72 | 1 652 | 5 | 1 730 |
| Debtors with defaults in the | 2 | 2 | ||||
| past | ||||||
| - | - | 72 52 636 | 1 654 9 018 | 5 18 538 | 1 731 | |
| Total | 13 464 | 137 | 93 793 |
| Counterparties with | |
| external credit rating | |
| Prime and high grade | 8 097 |
| Upper medium grade | 2 903 |
| Lower medium grade | 1 487 |
| Non-investment grade | - |
| 12 487 |
Counterparties without external credit rating
Debtors without defaults in
the past
Debtors with defaults in the
past
Total
*
Available Financial
for sale* assets at
FVSD**
16
12 487
16
16
31.12.2018 Loans Receivables and recoverables
EUR million
Cash Total
| - | 8 546 | 13 941 | 30 600 |
| 23 513 | 746 | 2 622 | 29 784 |
| 25 774 | 1 454 | 163 | 28 877 |
| 4 488 | 199 | 217 | 4 904 |
53 775
62 2
64
53 840
10 944
16 942
94 165
3 455
3 455
3
14 399
16 946
Available for sale financial assets (excluding instruments in money market funds and other equity instruments). Financial assets at fair value through surplus or deficit.
3 520
3 522
97 687
3
0
2
Annual accounts of the European Commission 2019
6.4. LIQUIDITY RISK
Maturity analysis of financial liabilities by remaining contractual maturity
< 1 year 1-5 years > 5 years
Borrowings
Payables
Financial guarantee liabilities
Other financial liabilities
(1 273)
(27 793)
(20)
(93)
Total at 31.12.2019
Borrowings
Payables
Other financial liabilities
(2 254)
(32 539)
(221)
Total at 31.12.2018
(19 312)
(31 978)
(421)
(640)
(17 363)
(533)
(34 158) (702)
EUR million
Total
(52 564)
(27 793)
(20)
(1 154)
(29 180) (19 733) (32 618) (81 531)
(53 775)
(32 539)
(1 456)
(35 013) (17 897) (34 860) (87 770)
Financial instruments at fair value through surplus or deficit
< 1 year 1-5 years > 5 years
Derivative pay leg Derivative receive leg
(397) 395
Net cash flows at 31.12.2019
(2)
Derivative pay leg Derivative receive leg
(490) 477
Net cash flows at 31.12.2018
(14)
(2)
(2)
(2)
(2)
(7)
(7)
(6)
(6)
EUR million
Total
(406) 395
(10)
(498) 477
(21)
6.5. CARRYING AMOUNT AND FAIR VALUE OF FINANCIAL INSTRUMENTS
The following classes of financial assets and liabilities are not measured at fair value: cash and cash equivalents, loans, exchange receivables and non-exchange recoverables, borrowings and other financial liabilities at amortised cost. The carrying amount of those financial assets and liabilities is considered as a reasonable approximation of their fair value.
Annual accounts of the European Commission 2019
7. RELATED PARTIES
The related parties of the entity are the EU consolidated entities and the key management personnel of these entities. Transactions between these entities take place as part of the normal operations of the EU and as this is the case, no specific disclosure requirements are necessary for these transactions in accordance with the EU accounting rules.
Details on key management entitlements are provided in note 7 of the EU consolidated annual accounts.
Annual accounts of the European Commission 2019
8. EVENTS AFTER THE BALANCE SHEET DATE
The annual accounts and related notes were prepared using the most recently available information and this is reflected in the information presented above. At the date of signature of these accounts two key material matters are disclosed below, the departure of the United Kingdom from the European Union and the EU reaction to the coronavirus outbreak. No further material issues had come to the attention of or were reported to the Accounting Officer of the Commission that would require separate disclosure under this section.
Coronavirus disease 2019 (COVID-19)
During the first half of 2020, the coronavirus outbreak has had huge global impacts. As a non-adjusting event, the outbreak of the coronavirus does not require any adjustments to the figures reported. For subsequent reporting periods, the implementation of the immediate response initiatives proposed by the Commission (including the reactivation of the Emergency Support Instrument (ESI) and further reinforcement of the Union Civil Protection Mechanism (UCPM/rescEU), the Coronavirus Response Investment Initiative (CRII and CRII+) and the support to mitigate Unemployment Risks in an Emergency (SURE) following the COVID-19 outbreak) will affect the recognition, measurement or reclassification of some assets and liabilities in the financial statements:
• Activation of the Emergency Support Instrument (ESI) and further reinforcement of the Union Civil Protection Mechanism (UCPM/rescEU):
Given the depth of the crisis following the COVID-19 outbreak as well as the extent and nature of the needs requiring support from the EU budget, the EU reactivated the ESI instrument. This instrument, originally established in March 2016 to address the emergency situation which had arisen following the massive influx of refugees in Greece (see Council Regulation (EU) 2016/369 of 15 March 2016), has been reactivated for a period of 3 years (2020-22) to finance expenditure necessary to address the COVID-19 pandemic for the period 1 February 2020 to 31 January 2022 (see Council regulation (EU) 2020/521 of 14 April 2020). To further this objective, the 2020 budget was amended to include EUR 2.7 billion in commitment appropriations and EUR 1.4 billion in payment appropriations (see Definitive Adoption (EU, Euratom) 2020/537 of Amending budget No 2 of the European Union for the financial year 2020 of 17 April 2020). The reactivation will allow the Union to deploy measures preventing and mitigating severe consequences in one or more Member States and to address in a coordinated manner the needs related to the COVID-19 disaster, by complementing any assistance provided under other EU instruments. The instrument is centrally managed by the Commission and mainly focuses on direct procurement and grants, whilst in certain cases actions will be implemented through partners such as international organisations.
As a complementary measure to the ESI, the Union Civil Protection Mechanism/rescEU was reinforced to allow wider stock-piling and coordination of essential resource distribution across Europe (see Commission Implementing Decision (EU) 2019/570, as amended by Commission Implementing Decision 2020/414 of 19 March 2020 and Commission Implementing Decision (EU) 2020/452 of 26 March 2020). To this purpose the 2020 budget was amended to include a further EUR 0.3 billion in commitment appropriations and EUR 0.2 billion in payment appropriations. The reinforcement of the UCPM/rescEU will support Member States in purchasing some of the needed equipment (including therapeutics, medical equipment, Personal Protective Equipment, laboratory supplies), thus increasing the volume as well as complementing and widening the scope of priority items purchased through the joint procurement under the Joint Procurement Agreement, a coordinated approach giving Member States a strong position when negotiating with the industry on availability and price of medical products. The rescEU direct grants will provide 100 % financing from the EU budget, which includes full financing for development of these capacities and full financing of deployment of equipment. The equipment purchased will be hosted by one or more Member States, while decision making is organised at EU level, providing emergency supplies over and beyond national stocks. It will be available to all Member States and will be used in case of insufficient national availability.
• Coronavirus Response Investment Initiative (CRII and CRIIplus):
CRII, implemented by Regulation 2020/460 of the European Parliament and the Council of 30 March 2020, introduced specific measures to mobilise investments in the healthcare systems of
Annual accounts of the European Commission 2019
introducing flexibility in applying EU spending rules and extending the scope of the EU Solidarity Fund. CRIIplus, implemented by Regulation 2020/558 of the European Parliament and the Council of 23 April 2020, introduced further measures to provide exceptional flexibility for the use of the European Structural and Investments Funds. The 2019 balance sheet includes EUR 6.8 billion as current pre-financing since these amounts were originally intended to be recovered during 2020. However, as a consequence of the CRII, the amounts will now remain with the Member States so as to be used to accelerate investments related to the COVID-19 outbreak. As the CRII foresees the clearance or recovery of pre-financing at closure, and eligibility periods may end in 2022, this EUR 6.8 billion of current pre-financing will likely all be reclassified, in conformity with the accounting rules, to non-current in the 2020 financial statements.
• European instrument for temporary Support to mitigate Unemployment Risks in an Emergency (SURE) following the COVID-19 outbreak:
As part of its emergency support package to tackle the economic impact of the COVID-19 crisis, the EU adopted on 19 May 2020 Council Regulation (EU) 2020/672 establishing the SURE instrument to help workers keep their jobs during the crisis. SURE is a temporary scheme which can provide up to EUR 100 billion of financial assistance (loans under favourable terms) to Member States. The instrument enables Member States to request EU financial assistance to help finance the sudden and severe increases of national public expenditure, as from 1 February 2020, related to national short-time work schemes and similar measures, including for self-employed persons, or to some health-related measures, in particular at the work place in response to the crisis. To enable the EU to provide financial assistance under SURE, the Commission shall be empowered to borrow on the capital markets or with financial institutions on behalf of the EU to a maximum amount of EUR 100 billion. SURE loans will be backed by the EU budget and guarantees provided by Member States according to their share in the EU's GNI. The total amount of guarantees will be EUR 25 billion and the instrument will become active only when all guarantees have been provided. The instrument is limited until 31 December 2022.
• Next Generation EU:
Furthermore, on 27 May 2020 President von der Leyen presented a new proposal for the EU long-term budget (multiannual financial framework) 2021-2027 and sectoral programmes boosted by ‘Next Generation EU’2, an emergency temporary recovery instrument, to help repair the immediate economic and social damage brought about by the coronavirus pandemic, kickstart the recovery and prepare for a better future for the next generation. This proposal is currently being discussed with Member States and the European Parliament. Should an agreement be reached based on this proposal, many EU budget programmes would be topped-up by funds raised through borrowings by the EU. Given the size of the proposed amounts, it would have a significant impact on the content of future EU balance sheets; the specific impact can only be assessed once the final proposal has been approved by the budget authority and its implementation starts.
Departure of United Kingdom from the European Union
On 1 February 2020 the United Kingdom ceased to be a Member State of the European Union. Following the conclusion 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 (the ‘Withdrawal Agreement’) between the two parties, the United Kingdom committed to pay all its obligations under the current MFF and previous financial perspectives following from its membership of the Union.
At the date of signature of these accounts, and based on the Withdrawal Agreement concluded and already in operation, there is no financial impact to be reported in these accounts.
Annual accounts of the European Commission 2019
EUROPEAN COMMISSION FINANCIAL YEAR 2019
BUDGETARY IMPLEMENTATION REPORTS
It should be noted that due to the rounding of figures into millions of euros, some financial data in the
Annual accounts of the European Commission 2019
CONTENTS
EU BUDGET RESULT ......................................................................................... 61
STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS ........................ 62
1. IMPLEMENTATION OF EC BUDGET REVENUE ............................................... 65
2. IMPLEMENTATION OF EC BUDGET EXPENDITURE ........................................ 66
2.1. MFF: BREAKDOWN & CHANGES IN COMMITMENT & PAYMENT APPROPRIATIONS .............................................................................. 66
2.2. MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS ................... 67
2.3. MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ......................... 68
2.4. MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) .................... 69
2.5. MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN ....................... 70
2.6. POLICY AREA: BREAKDOWN AND CHANGES IN COMMITMENT AND PAYMENT APPROPRIATIONS ......................................................... 71
2.7. POLICY AREA: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS ...... 73
2.8. POLICY AREA: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ............ 75
2.9. POLICY AREA: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL) ....... 77
2.10. POLICY AREA: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN .......... 79
RECONCILIATION OF ECONOMIC RESULT WITH BUDGET RESULT .......................... 81
Annual accounts of the European Commission 2019
EU BUDGET RESULT
Revenue for the financial year
Payments against current year appropriations
Payment appropriations carried over to year N+1
Cancellation of unused appropriations carried over from year N-1
Evolution of assigned revenue (B)-(A)
Unused appropriations at the end of current year (A) Unused appropriations at the end of previous year (B) Exchange rate differences for the year
Budget result
| EUR million | |
| 163 918 | 159 318 |
| (157 428) | (154 833) |
| (1 615) | (1 675) |
| 75 | 106 |
| (1 736) | (1 114) |
| 9 144 | 7 408 |
| 7 408 | 6 295 |
| 4 | (1) |
| 3 217 | 1 802 |
Annual accounts of the European Commission 2019
STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS
BUDGET REVENUE
EUR million
Title
1 Own resources
11 - Sugar levies
12 - Customs duties
13 - VAT
14 - GNI
15 - Correction of budgetary imbalances
16 - Reduction of GNI based contribution of the Netherlands and Sweden
Surpluses, balances and adjustments Miscellaneous community taxes, levies and duties
Revenue accruing from the administrative operation of the institution
Contributions and refunds in connection with union agreements and programmes
Default interest and fines Borrowing and lending operations Miscellaneous revenue
Total
| Initial adopted budget | Final adopted budget | Entitlements established | Revenue |
| 146 305 | 144 795 | 147 056 | 144 766 |
| - | - | (1) | (1) |
| 21 471 | 21 471 | 23 656 | 21 365 |
| 17 739 | 17 739 | 17 775 | 17 775 |
| 107 095 | 105 585 | 105 700 | 105 700 |
| - | - | (81) | (81) |
| - | - | 7 | 7 |
| - | 1 803 | 1 811 | 1 805 |
| 1 231 | 1 231 | 1 212 | 1 203 |
| 25 | 25 | 285 | 264 |
| 130 | 130 | 14 112 | 12 568 |
| 115 | 115 | 18 575 | 2 625 |
| 3 | 3 | 3 | 3 |
| 15 | 15 | 13 | 7 |
| 147 824 | 148 117 | 183 069 | 163 240 |
5
Annual accounts of the European Commission 2019
BUDGET EXPENDITURE: COMMITMENTS BY MULTIANNUAL FINANCIAL FRAMEWORK (MFF) HEADING
I
MFF Heading
Initial adopted budget
Smart and inclusive growth
1a: Competitiveness for growth and jobs 1b: Economic, social and territorial cohesion
Sustainable growth: natural resources
of which: Market related expenditure and direct payments
Security and citizenship Global Europe Administration
Compensations
Negative reserve and deficit carried over from the previous financial year
Special Instruments
Total
577
161 680
Final adopted budget
Total
appropriations
available
EUR million
Commitments made
| 80 527 | 80 627 | 92 794 | 90 536 |
| 23 335 | 23 435 | 27 826 | 25 782 |
| 57 192 | 57 192 | 64 969 | 64 754 |
| 59 642 | 59 642 | 62 846 | 60 600 |
| 43 192 | 43 192 | 44 806 | 43 962 |
| 3 787 | 3 787 | 4 065 | 3 874 |
| 11 319 | 11 625 | 13 454 | 13 111 |
| 5 828 | 5 828 | 6 226 | 6 000 |
565
162 074
618
180 004
295
174 416
1
2
Annual accounts of the European Commission 2019
BUDGET EXPENDITURE: PAYMENTS BY MULTIANNUAL FINANCIAL FRAMEWORK (MFF) HEADING
I
EUR million
| MFF Heading | Initial adopted Final adopted budget budget | Total appropriations available | Payments made |
Smart and inclusive growth
1a: Competitiveness for growth and jobs 1b: Economic, social and territorial cohesion
Sustainable growth: natural resources
of which: Market related expenditure and direct payments
Security and citizenship Global Europe Administration
Compensations
Negative reserve and deficit carried over from the previous financial year
Special Instruments
Total
| 67 557 | 67 823 | 82 553 | 75 535 |
| 20 522 | 20 261 | 26 044 | 21 748 |
| 47 035 | 47 561 | 56 510 | 53 787 |
| 57 400 | 57 837 | 61 252 | 59 521 |
| 43 116 | 43 113 | 44 933 | 43 885 |
| 3 527 | 3 291 | 3 575 | 3 256 |
| 9 358 | 8 953 | 10 933 | 10 108 |
| 5 829 | 5 827 | 6 588 | 6 004 |
412
144 083
647
144 377
671
165 573
295
154 719
1
2
Annual accounts of the European Commission 2019
1. IMPLEMENTATION OF EC BUDGET REVENUE
Income appropriations
Initial Final
budget budget
adopted adopted
Entitlements established
Current year
Carried
Revenue
On On
entitlements of entitlements
current year carried over
1 Own resources
3
4
Surpluses, balances and adjustments
Miscellaneous community taxes, levies and duties
| 146 305 | 144 795 | 147 013 | 44 | 147 056 | 144 754 |
| - | 1 803 | 1 811 | - | 1 811 | 1 805 |
| 1 231 | 1 231 | 1 203 | 10 | 1 212 | 1 193 |
Revenue accruing from the
5 administrative operation of the institution
Contributions and refunds in
6 connection with union agreements and programmes
25
130
25
130
272
13 557
13
555
285
14 112
256
12 273
8
294
Receipts as % of budget
12 144 766 100 %
1 805 100 %
10 1 203 98 %
264 1056 %
12 568 9667 %
EUR million
Outstanding
2 291
7 9
21 1 545
| 7 | Default interest and fines | 115 | 115 | 5 456 | 13 119 | 18 575 | 2 355 | 271 | 2 625 | 2283 % | 15 949 |
| 8 | Borrowing and lending operations | 3 | 3 | 3 | - | 3 | 3 | - | 3 | 110 % | - |
| 9 | Miscellaneous revenue Total | 15 | 15 | 6 | 7 | 13 | 6 | 1 | 7 | 43 % | 7 |
| 147 824 | 148 117 | 169 322 | 13 747 | 183 069 | 162 644 | 596 | 163 240 | 110 % | 19 829 |
Total
Total
over
Annual accounts of the European Commission 2019
2. IMPLEMENTATION OF EC BUDGET EXPENDITURE
2.1. MFF: BREAKDOWN & CHANGES IN COMMITMENT & PAYMENT APPROPRIATIONS
EUR million
Commitment appropriations
Payment appropriations
| Budget appropriations | Additional appropriations Carry- Assigned overs revenue | Total appropr. available | Budget appropriations | Additional appropriat. Carry- Assigned overs revenue | Total appropr. available | ||||||||
| MFF Heading | Initial adopted budget | Amending budgets & transfers | Final adopted budget | Initial adopted budget | Amending budgets & transfers | Final adopted budget | |||||||
| 1 | 2 | 3 = 1+2 | 4 | 5 | 6=3+4+5 | 7 | 8 | 9=7+8 | 10 | 11 | 12=9+10 +11 | ||
| 1 | Smart and inclusive growth | 80 527 | 100 | 80 627 | 0 | 12 166 | 92 794 | 67 557 | 266 | 67 823 | 131 | 14 600 | 82 553 |
| 1a: Competitiveness for growth and jobs | 23 335 | 100 | 23 435 | 0 | 4 390 | 27 826 | 20 522 | (260) | 20 261 | 118 | 5 664 | 26 044 | |
| 1b: Economic, social and territorial cohesion | 57 192 | - | 57 192 | - | 7 777 | 64 969 | 47 035 | 526 | 47 561 | 13 | 8 935 | 56 510 | |
| 2 | Sustainable growth: natural resources of which: Market related | 59 642 | (0) | 59 642 | 460 | 2 745 | 62 846 | 57 400 | 437 | 57 837 | 672 | 2 743 | 61 252 |
| expenditure and direct | 43 192 | - | 43 192 | 460 | 1 155 | 44 806 | 43 116 | (3) | 43 113 | 665 | 1 155 | 44 933 | |
| payments | |||||||||||||
| 3 | Security and citizenship | 3 787 | (0) | 3 787 | - | 279 | 4 065 | 3 527 | (237) | 3 291 | 9 | 276 | 3 575 |
| 4 | Global Europe | 11 319 | 306 | 11 625 | 34 | 1 795 | 13 454 | 9 358 | (406) | 8 953 | 64 | 1 916 | 10 933 |
| 5 | Administration | 5 828 | 0 | 5 828 | 1 | 397 | 6 226 | 5 829 | (2) | 5 827 | 362 | 399 | 6 588 |
| 6 | Compensations Negative reserve and deficit | - | - | - | - | - | - | - | - | - | - | - | - |
| 8 | carried over from the previous financial year | — | — | — | — | — | — | — | — | — | — | — | — |
| 9 | Special Instruments Total | 577 | (12) | 565 | 30 | 24 | 618 | 412 | 236 | 647 | 0 | 24 | 671 |
| 161 680 | 394 | 162 074 | 525 | 17 405 | 180 004 | 144 083 | 294 | 144 377 | 1 238 | 19 958 | 165 573 |
Annual accounts of the European Commission 2019
2.2. MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS
EUR million
MFF Heading
Total appropr. available
from final adopted b
Commitments made
rom from
arry- assigned To
5=2+3+4 6=5/1
Appropriat. carried over to 2020
carry-assigned
overs by Total
revenue
decision
7 8 9=7+8
Appropriations lapsing
| 1 | Smart and inclusive growth | 92 794 | 80 540 | 0 | 9 996 | 90 536 | 98 % | 2 074 | 36 | 2 110 |
| 1a: Competitiveness for growth and jobs | 27 826 | 23 406 | 0 | 2 376 | 25 782 | 93 % | 2 013 | 3 | 2 016 | |
| 1b: Economic, social and territorial cohesion | 64 969 | 57 134 | - | 7 620 | 64 754 | 100 % | 60 | 33 | 93 | |
| 2 | Sustainable growth: natural resources of which: Market related | 62 846 | 59 161 | 438 | 1 001 | 60 600 | 96 % | 1 330 | 467 | 1 797 |
| expenditure and direct | 44 806 | 42 718 | 438 | 807 | 43 962 | 98 % | 348 | 467 | 815 | |
| payments | ||||||||||
| 3 | Security and citizenship | 4 065 | 3 737 | - | 137 | 3 874 | 95 % | 142 | - | 142 |
| 4 | Global Europe | 13 454 | 11 622 | 34 | 1 454 | 13 111 | 97 % | 340 | 1 | 341 |
| 5 | Administration | 6 226 | 5 764 | 1 | 235 | 6 000 | 96 % | 161 | - | 161 |
| 6 | Compensations Negative reserve and deficit | - | - | - | - | - | 0 % | - | - | - |
| 8 | carried over from the previous financial year | — | — | — | — | — | 0 % | — | — | — |
| 9 | Special Instruments | 618 | 295 | - | - | 295 | 48 % | 8 | 94 | 102 |
from final adopted budget
52 27
25 14
8
50
2 63
from assigned
97 1
21
21
96 414
13=10+
149 28
121 449
29
| 0 | 50 |
| 0 | 2 |
| 0 | 64 |
Total
180 004 161 120
473
12 823 174 416 97 %
| 175 | 30 | 16 | 221 |
| 356 | 51 | 527 | 934 |
from carryovers
%
Total
evenue
revenue
10
1
4
11
0
Annual accounts of the European Commission 2019
2.3. MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS
EUR million
MFF Heading
Total appropr. from final
available adopted
budget
Payments made
from from
carry- assigned T
overs revenue
6=5/1
Appropriations carried over to 2020
Appropriations lapsing
carryovers by decis.
assigned
| 1 | Smart and inclusive growth | 82 553 | 67 637 | 113 | 7 785 | 75 535 | 91 % | 151 |
| 1a: Competitiveness for growth and jobs | 26 044 | 20 090 | 102 | 1 555 | 21 748 | 84 % | 138 | |
| 1b: Economic, social and territorial cohesion | 56 510 | 47 547 | 10 | 6 230 | 53 787 | 95 % | 13 | |
| 2 | Sustainable growth: natural resources of which: Market | 61 252 | 57 163 | 637 | 1 721 | 59 521 | 97 % | 198 |
| related expenditure and | 44 933 | 42 449 | 631 | 806 | 43 885 | 98 % | 190 | |
| direct payments | ||||||||
| 3 | Security and citizenship | 3 575 | 3 153 | 7 | 96 | 3 256 | 91 % | 9 |
| 4 | Global Europe | 10 933 | 8 908 | 60 | 1 140 | 10 108 | 92 % | 39 |
| 5 | Administration | 6 588 | 5 478 | 335 | 191 | 6 004 | 91 % | 285 |
| 6 | Compensations Negative reserve and | - | - | - | - | - | 0 % | - |
| 8 | deficit carried over from the previous financial year | - | - | - | - | - | 0 % | 0 |
| 9 | Special Instruments Total | 671 | 295 | 0 | - | 295 | 44 % | 1 |
| 165 573 | 142 633 | 1 152 | 10 934 | 154 719 | 93 % | 682 |
467
from
final
adopted
budget
10=7+
| 3 | 6 813 | 6 967 | 32 | 18 |
| 3 | 4 108 | 4 249 | 30 | 16 |
| - | 2 705 | 2 718 | 2 | 2 |
| 7 | 1 023 | 1 687 | 9 | 35 |
349
1 006
from assigned revenue
1 1 0
34
| 180 | 188 | 129 | 2 |
| 772 | 811 | 6 | 4 |
| 206 | 492 | 64 | 27 |
8 9 352 0
470 9 001 10 154 592 86
16
22
14=11+
52
48
4
44
42
131 14 92
368
700
automatic carryovers
from carryovers
%
Total
Total
revenue
5 = 2+
1
2
3
7
8
9
11
12+13
7
0
Annual accounts of the European Commission 2019
2.4. MFF: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL)
Commitments outstanding at the end of previous year
Commitments of the current year
MFF Heading
Commit. carried
forward from
prev. year
Smart and inclusive growth
1a: Competitiveness for growth and jobs
1b: Economic, social and territorial cohesion
Sustainable growth: natural resources
of which: Market related expenditure and direct payments
Security and citizenship
Global Europe
Administration
Compensations
Negative reserve and deficit
carried over from the previous
financial year
Special Instruments
Total
0
280 599
Decommitments/ Revaluations/ Cancellations
Payments
206 991 37 006
169 985
40 047
359
5 834
27 352
374
Commitm. outstanding at year-end
Commit.
made
during the
year
Payments
| 4=1+2+3 | ||||
| (1 360) | (66 413) | 139 217 | 90 536 | (9 122) |
| (738) | (13 367) | 22 901 | 25 782 | (8 380) |
| (622) | (53 046) | 116 317 | 64 754 | (742) |
| (253) | (15 133) | 24 661 | 60 600 | (44 387) |
| (6) | (235) | 117 | 43 962 | (43 650) |
| (269) | (1 934) | 3 632 | 3 874 | (1 323) |
| (1 200) | (6 918) | 19 234 | 13 111 | (3 190) |
| (28) | (344) | 3 | 6 000 | (5 660) |
(0) (0)
(3 109) (90 742)
295 (295)
186 747 174 416 (63 977)
Cancellation of
commitm.
which cannot
be carried-over
Commitm. outstanding at year-end
8=5+6+7
EUR million
commitm.
outstanding at
end of the
year
9=4+8
| (4) | 81 410 |
| (4) | 17 397 |
| (0) | 64 012 |
| (0) | 16 213 |
| - | 313 |
| - | 2 551 |
| (0) | 9 920 |
| (1) | 339 |
(5)
1
110 434
220 627
40 298
180 329
40 874
430
6 183
29 154
342
1
297 181
Total
7
1
2
6
8
9
Annual accounts of the European Commission 2019
2.5. MFF: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN
EUR million
MFF Heading
1 Smart and inclusive growth
2 Sustainable growth: natural resources
3 Security and citizenship
4 Global Europe
5 Administration
6 Compensations
Negative reserve and deficit carried over from the 8
previous financial year
9 Special Instruments
Total
| 1 428 | 3 640 | 2 139 | 4 683 | 12 476 | 45 924 | 68 924 | 81 414 | 220 627 |
| 68 | 130 | 285 | 1 316 | 2 685 | 7 603 | 12 575 | 16 213 | 40 874 |
| 33 | 18 | 20 | 53 | 433 | 1 223 | 1 851 | 2 552 | 6 183 |
| 909 | 958 | 1 010 | 1 851 | 3 253 | 4 973 | 6 231 | 9 970 | 29 154 |
| _ | _ | 0 | _ | 0 | 1 | 2 | 339 | 342 |
2 438
4 746
3 453
7 904
18 846
59 723
0 1 1
89 583 110 488 297 181
The set up of the new Commission involved an internal re-organisation of services. Re-allocating the related transactions resulted in a shift of outstanding amount between years. The overall amount of outstanding commitments remains unchanged.
2013
2014
2015
2016
2017
2018
2019
Total
Annual accounts of the European Commission 2019
2.6. POLICY AREA: BREAKDOWN AND CHANGES IN COMMITMENT AND PAYMENT APPROPRIATIONS
01 02 03 04
05
06 07 08
09
10 11
12
13 14 15 16 17 18
Policy area
Economic and financial affairs
Internal market, industry,
entrepreneurship and SMEs
Competition
Employment, social affairs
and inclusion
Agriculture and rural
development
Mobility and transport
Environment
Research and innovation
Communications networks,
content and technology
Direct research
Maritime affairs and fisheries
Financial stability, financial
services and capital markets
union
Regional and urban policy
Taxation and customs union
Education and culture
Communication
Health and food safety
Migration and home affairs
Commitment appropriations
Budget appropriations
Initial adopted budget
Amending budgets & transfers
119
Final adopted budget
Additional appropriations
Carried Assigned
| 3 = 1+2 | ||
| 336 | (26) | 310 |
| 2 796 | 0 | 2 796 |
| 111 | 1 | 113 |
| 14 753 | (3) | 14 751 |
| 58 407 | (3) | 58 404 |
| 4 808 | (8) | 4 800 |
| 525 | (0) | 524 |
| 7 405 | 89 | 7 494 |
| 2 430 | 3 | 2 433 |
| 440 | - | 440 |
| 1 028 | 117 | 1 145 |
460
119
Payment appropriations
Total appropr. available
Budget appropriations
Initial adopted budget
Amending budgets & transfers
Final adopted budget
9=7+8
Additional appropriations
Carried Assigned
124
120
(1)
119
EUR million
Total appropr. available
12=9+10
| 462 | 773 | 1 204 | (16) | 1 188 | 32 | 763 | 1 982 |
| 269 | 3 065 | 2 473 | (49) | 2 424 | 15 | 466 | 2 905 |
| 6 | 120 | 111 | 1 | 113 | 14 | 6 | 132 |
| 1 881 | 16 631 | 11 910 | 527 | 12 437 | 11 | 2 562 | 15 010 |
| 2 633 | 61 496 | 56 641 | 363 | 57 004 | 673 | 2 649 | 60 326 |
| 173 | 4 973 | 2 510 | 92 | 2 601 | 5 | 119 | 2 725 |
| 16 | 540 | 370 | 15 | 385 | 4 | 15 | 404 |
| 1 665 | 9 160 | 6 737 | (112) | 6 625 | 33 | 2 429 | 9 086 |
| 415 | 2 848 | 2 134 | (155) | 1 979 | 13 | 550 | 2 541 |
| 597 | 1 037 | 428 | - | 428 | 47 | 540 | 1 015 |
| 220 | 1 365 | 661 | 189 | 849 | 3 | 220 | 1 072 |
128
| 41 290 | 268 | 41 559 | 30 | 6 030 | 47 618 | 34 799 | 196 | 34 994 | 13 | 6 506 | 41 512 |
| 177 | (0) | 177 | - | 13 | 191 | 176 | (0) | 176 | 6 | 13 | 195 |
| 4 540 | 21 | 4 561 | 0 | 699 | 5 260 | 4 052 | 75 | 4 127 | 21 | 944 | 5 092 |
| 216 | (1) | 215 | - | 12 | 228 | 213 | (3) | 210 | 15 | 12 | 237 |
| 617 | (1) | 616 | - | 48 | 664 | 561 | (1) | 561 | 10 | 49 | 620 |
| 2 271 | 549 | 2 821 | - | 253 | 3 073 | 2 576 | (188) | 2 388 | 8 | 271 | 2 667 |
-over
revenue
-over
revenue
6 = 3 + 4+5
5
7
8
10
11
1
1
5
4
5
Annual accounts of the European Commission 2019
Policy area
19 Foreign policy instruments
20 Trade International cooperation and development Neighbourhood and enlargement negotiations Humanitarian aid and civil protection Fight against fraud Commission's policy coordination and legal advice Commission's administration
21
22
23 24 25 26
27 Budget
28 Audit
29
30
31 32 33 34 40
Statistics
Pensions and related
expenditure
Language services
Energy
Justice and consumers
Climate action
Reserves
Commitment appropriations
Budget appropriations
Initial Amending Final
adopted budgets & adopted
budget transfers budget
Additional appropriations
Carried Assigned
Total
| 869 | (13) | 856 |
| 116 | (1) | 115 |
| 3 717 | 14 | 3 730 |
| 5 072 | 60 | 5 133 |
| 1 764 | 340 | 2 104 |
| 83 | - | 83 |
| 260 | 1 | 261 |
| 1 143 | 1 | 1 145 |
| 74 | 3 | 77 |
| 20 | (0) | 20 |
| 160 | (1) | 159 |
| 2 008 | - | 2 008 |
| 403 | (3) | 401 |
| 2 006 | (0) | 2 006 |
| 265 | 0 | 265 |
| 165 | (0) | 165 |
| 1 285 | (1 016) | 269 |
| 161 680 | 394 | 162 074 |
34
Payment appropriations
Total appropr. available
Budget appropriations
Initial adopted budget
Amending budgets & transfers
Final adopted budget
Additional appropriations
Carried Assigned
EUR million
Total appropr. available
=9+10
525
| 4+5 | 8 | 9=7+8 | 10 | +11 | |||
| 57 | 913 | 722 | 24 | 746 | 3 | 63 | 812 |
| 3 | 118 | 115 | (1) | 114 | 4 | 3 | 121 |
| 287 | 4 017 | 3 301 | (221) | 3 081 | 25 | 332 | 3 438 |
| 672 | 5 805 | 3 770 | (267) | 3 502 | 11 | 490 | 4 004 |
| 431 | 2 568 | 1 705 | 136 | 1 841 | 8 | 376 | 2 226 |
| 1 | 84 | 83 | - | 83 | 7 | 1 | 91 |
| 12 | 273 | 260 | 0 | 260 | 20 | 12 | 292 |
| 213 | 1 357 | 1 142 | 2 | 1 144 | 173 | 214 | 1 531 |
| 9 | 86 | 74 | 3 | 77 | 15 | 9 | 101 |
| 1 | 21 | 20 | (0) | 20 | 1 | 1 | 22 |
| 16 | 175 | 144 | (4) | 140 | 6 | 27 | 173 |
| 0 | 2 008 | 2 008 | - | 2 008 | - | 0 | 2 008 |
| 73 | 474 | 403 | (3) | 401 | 25 | 73 | 499 |
| 225 | 2 231 | 1 628 | (112) | 1 516 | 6 | 230 | 1 752 |
| 7 | 272 | 247 | 11 | 258 | 5 | 7 | 270 |
| 1 | 166 | 108 | (9) | 99 | 4 | 1 | 104 |
| - | 269 | 678 | (199) | 479 | - | - | 479 |
| 405 | 180 004 | 144 083 | 294 | 144 377 | 1 238 | 19 958 | 165 573 |
-over
revenue
-over
revenue
5
Annual accounts of the European Commission 2019
2.7. POLICY AREA: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS
EUR million
01 02 03 04 05 06 07 08 09 10 11
12
13 14 15 16 17 18
Policy area
Economic and financial
affairs
Internal market, industry,
entrepreneurship and SMEs
Competition
Employment, social affairs and inclusion Agriculture and rural development
Mobility and transport Environment
Research and innovation
Communications networks, content and technology
Direct research
Maritime affairs and
fisheries
Financial stability, financial
services and capital
markets union
Regional and urban policy
Taxation and customs union
Education and culture Communication Health and food safety Migration and home affairs
| Total appropr. available | Commitments made | Appropriations carried over to 2020 carry-assigned overs by Total revenue decision | ||||||||
| from final adopted budget | from carryovers | from assigned revenue | Total | % | from final adopted budget | |||||
| 701 | 91 % | 69 | ||||||||
| 773 | 308 | - | 393 | 69 | - | 3 | ||||
| 3 065 | 2 793 | - | 169 | 2 962 | 97 % | 99 | - | 99 | 3 | |
| 120 | 111 | 1 | 3 | 115 | 96 % | 3 | - | 3 | 2 | |
| 16 631 | 14 696 | - | 1 776 | 16 472 | 99 % | 43 | 32 | 75 | 23 | |
| 61 496 | 57 926 | 438 | 877 | 59 242 | 96 % | 1 342 | 467 | 1 809 | 11 | |
| 4 973 | 4 797 | - | 92 | 4 889 | 98 % | 81 | - | 81 | 2 | |
| 540 | 523 | - | 12 | 536 | 99 % | 4 | - | 4 | 1 | |
| 9 160 | 7 494 | - | 938 | 8 432 | 92 % | 728 | - | 728 | 0 | |
| 2 848 | 2 427 | - | 236 | 2 663 | 93 % | 179 | - | 179 | 6 | |
| 1 037 | 437 | - | 113 | 550 | 53 % | 484 | 3 | 487 | 0 | |
| 1 365 | 1 142 | _ | 143 | 1 285 | 94 % | 76 | _ | 76 | 3 |
Appropriations lapsing
124
100
103
83 %
| 47 618 | 41 502 | - | 5 906 | 47 408 | 100 % | 74 |
| 191 | 176 | - | 9 | 185 | 97 % | 4 |
| 5 260 | 4 560 | 0 | 435 | 4 995 | 95 % | 264 |
| 228 | 214 | - | 7 | 221 | 97 % | 5 |
| 664 | 612 | - | 28 | 640 | 96 % | 20 |
| 3 073 | 2 820 | _ | 124 | 2 944 | 96 % | 129 |
50
20
| 124 | 7 |
| 4 | 1 |
| 264 | 1 |
| 5 | 1 |
| 20 | 4 |
| 129 | 1 |
| from | from | |
| carry- | assigned | Total |
| overs | revenue | |
| 13=10+ 11 +12 | ||
| - | 0 | 3 |
| - | 1 | 4 |
| 0 | 0 | 2 |
| - | 62 | 85 |
| 21 | 413 | 446 |
| - | 0 | 2 |
| - | 0 | 1 |
| - | 0 | 0 |
| - | 0 | 6 |
| - | 0 | 0 |
| _ | 1 | 4 |
30
20
| 50 | 86 |
| 0 | 1 |
| 0 | 1 |
| 0 | 1 |
| 0 | 4 |
| 0 | 1 |
3
2
2
0
Annual accounts of the European Commission 2019
EUR million
Policy area
Total appropr. available
from
final
adopted
budget
| ■ | |||
| 19 | Foreign policy instruments | 913 | 856 |
| 20 | Trade | 118 | 114 |
| 21 | International cooperation and development | 4 017 | 3 726 |
| 22 | Neighbourhood and enlargement negotiations | 5 805 | 5 131 |
| 23 | Humanitarian aid and civil protection | 2 568 | 2 103 |
| 24 | Fight against fraud Commission's policy | 84 | 83 |
| 25 | coordination and legal advice | 273 | 254 |
| 26 | Commission's administration | 1 357 | 1 141 |
| 27 | Budget | 86 | 76 |
| 28 | Audit | 21 | 19 |
| 29 | Statistics | 175 | 157 |
| 30 | Pensions and related expenditure | 2 008 | 1 996 |
| 31 | Language services | 474 | 395 |
| 32 | Energy | 2 231 | 2 004 |
| 33 | Justice and consumers | 272 | 263 |
| 34 | Climate action | 166 | 165 |
| 40 | Reserves | 269 | - |
| Total | 180 004 | 161 120 |
Commitments made
om from
rry- assigned Tota
vers revenue
34
261
Appropriations carried over to 2020
assigned
carryovers by decision
| 5=2em | 6=5/1 | ||
| 31 | 887 | 97 % | 26 |
| 2 | 115 | 97 % | 1 |
| 204 | 3 930 | 98 % | 83 |
| 606 | 5 737 | 99 % | 66 |
| 416 | 2 553 | 99 % | 15 |
| 0 | 83 | 99 % | 1 |
96 %
| 129 | 1 270 | 94 % | 84 |
| 6 | 82 | 96 % | 3 |
| 1 | 20 | 96 % | 1 |
| 6 | 163 | 93 % | 10 |
| 0 | 1 996 | 99 % | 0 |
| 45 | 440 | 93 % | 28 |
| 100 | 2 104 | 94 % | 125 |
| 4 | 267 | 98 % | 3 |
| 1 | 165 | 99 % | 1 |
| - | - | 0 % | - |
| 823 | 174 416 | 97 % | 4 055 |
46
598
from
final
adopted
budget
26 1 84 66 15 1
Appropriations lapsing
from from
carry- assigned
overs revenue
| 84 | 4 |
| 3 | 1 |
| 1 | 0 |
| 10 | 2 |
| 0 | 12 |
| 28 | 6 |
| 125 | 2 |
| 3 | 2 |
| 1 | 0 |
| 46 | 223 |
| 4 653 | 356 |
| 0 | 0 |
| 0 | 2 |
| 0 | 3 |
| 0 | 2 |
| 0 | 1 |
| 0 | 0 |
51
| 0 | 4 |
| 0 | 1 |
| 0 | 0 |
| 0 | 2 |
| - | 12 |
| 0 | 6 |
| 0 | 2 |
| 0 | 2 |
| 0 | 0 |
| - | 223 |
| 7 | 934 |
%
Total
revenue
3
4
8
12
1
7
5
5
7
0
7
Annual accounts of the European Commission 2019
2.8. POLICY AREA: IMPLEMENTATION OF PAYMENT APPROPRIATIONS
EUR million
Policy area
Total appropr. available
01
02
03 04
05
06 07
08 09
10 11
12
13
14 15
Payments made
from final from from
adopted carry- assigned T
budget overs revenue
Appropriations carried over to 2020
carry-tomatic
overs assigned
automatic carryovers
| Wc=2+ 1 783 | |||||||
| Economic and financial | 1 982 | 1 181 | 30 | 572 | 90 % | 4 | |
| Internal market, | |||||||
| industry, entrepreneurship and | 2 905 | 2 405 | 13 | 147 | 2 564 | 88 % | 16 |
| SMEs | |||||||
| Competition | 132 | 99 | 13 | 2 | 114 | 86 % | 12 |
| Employment, social affairs and inclusion | 15 010 | 12 422 | 7 | 2 355 | 14 784 | 99 % | 11 |
| Agriculture and rural development | 60 326 | 56 328 | 638 | 1 533 | 58 500 | 97 % | 198 |
| Mobility and transport | 2 725 | 2 592 | 4 | 29 | 2 625 | 96 % | 5 |
| Environment | 404 | 380 | 4 | 13 | 396 | 98 % | 4 |
| Research and innovation | 9 086 | 6 588 | 30 | 489 | 7 107 | 78 % | 37 |
| Communications | |||||||
| networks, content and | 2 541 | 1 965 | 10 | 111 | 2 086 | 82 % | 10 |
| technology | |||||||
| Direct research | 1 015 | 363 | 42 | 104 | 509 | 50 % | 62 |
| Maritime affairs and | 1 072 | 846 | 2 | 198 | 1 046 | 98 % | 2 |
| Financial stability, | |||||||
| financial services and | 128 | 96 | 4 | 3 | 103 | 80 % | 4 |
| capital markets union | |||||||
| Regional and urban policy Taxation and customs union | 41 512 | 34 980 | 11 | 3 921 | 38 912 | 94 % | 11 |
| 195 | 170 | 6 | 5 | 181 | 93 % | 5 | |
| Education and culture | 5 092 | 4 108 | 17 | 380 | 4 504 | 88 % | 18 |
| Communication | 237 | 197 | 14 | 6 | 217 | 91 % | 12 |
467
191
319
439
436 22
2
from
final
adopted
budget
Appropriations lapsing
from from
carry- assigned T d
overs revenue
=7+
194
335
| 4 | 16 | 2 | 0 | 0 |
| 191 | 202 | 4 | 3 | 16 |
| 1 116 | 1 780 | 11 | 35 | 0 |
| 90 | 96 | 4 | 1 | 0 |
| 2 | 7 | 1 | 0 | 0 |
| 1 939 | 1 976 | 0 | 3 | 0 |
449
501 25
5
2 585 2 596
7 12
564 582
0 1
20
| 3 | 2 |
| 1 | 0 |
| 1 | 4 |
2 23
46
5 1
3
6 1
20
5
2
5
6
18
%
revenue
8
9
11
12
13
3
2
0
5
3
2
0
5
3
3
0
6
3
0
0
1
1
0
2
Annual accounts of the European Commission 2019
EUR million
| Total appropr. | Payments made | Appropriations carried over to 2020 | Appropriations lapsing | |||||||||||||
| from final | from | from | automatic | carry- | assigned revenue | from final adopted budget | from | from | ||||||||
| Policy area | available | adopted budget | carryovers | assigned revenue | Total | % | carryovers | overs by decis. | Total | carryovers | assigned revenue | Total | ||||
| 17 Health and food safety | 620 | 551 | 9 | 29 | 588 | 95 % | 8 | - | 20 | 29 | 1 | 1 | 0 | 3 | ||
| Migration and home 18 | 2 667 | 2 380 | 6 | 80 | 2 466 | 92 % | 7 | - | 191 | 198 | 1 | 2 | 0 | 3 | ||
| Foreign policy 19 instruments | 812 | 741 | 3 | 39 | 783 | 96 % | 4 | - | 24 | 28 | 1 | 1 | 0 | 2 | ||
| 20 Trade | 121 | 110 | 4 | 2 | 115 | 95 % | 3 | - | 2 | 4 | 2 | 0 | 0 | 2 | ||
| International | ||||||||||||||||
| 21 cooperation and | 3 438 | 3 056 | 22 | 172 | 3 250 | 95 % | 21 | - | 156 | 177 | 4 | 3 | 4 | 11 | ||
| development | ||||||||||||||||
| Neighbourhood and | ||||||||||||||||
| 22 enlargement | 4 004 | 3 487 | 10 | 177 | 3 674 | 92 % | 13 | - | 313 | 326 | 2 | 1 | 0 | 3 | ||
| negotiations | ||||||||||||||||
| Humanitarian aid and 23 civil protection | 2 226 | 1 833 | 8 | 327 | 2 168 | 97 % | 8 | - | 49 | 57 | 1 | 0 | 0 | 1 | ||
| 24 Fight against fraud | 91 | 74 | 6 | 0 | 80 | 88 % | 7 | - | 1 | 8 | 2 | 2 | 0 | 4 | ||
| Commission's policy | ||||||||||||||||
| 25 coordination and legal | 292 | 234 | 19 | 6 | 259 | 89 % | 19 | 0 | 6 | 25 | 7 | 1 | 0 | 8 | ||
| advice | ||||||||||||||||
| Commission's 26 administration | 1 531 | 1 011 | 164 | 101 | 1 275 | 83 % | 130 | 0 | 113 | 244 | 4 | 9 | 0 | 13 | ||
| 27 Budget | 101 | 62 | 14 | 4 | 80 | 79 % | 14 | - | 5 | 19 | 1 | 1 | 0 | 2 | ||
| 28 Audit | 22 | 19 | 1 | 1 | 20 | 92 % | 1 | - | 1 | 1 | 0 | 0 | 0 | 0 | ||
| 29 Statistics | 173 | 133 | 5 | 7 | 145 | 84 % | 5 | - | 20 | 25 | 2 | 1 | 0 | 3 | ||
| Pensions and related 30 expenditure | 2 008 | 1 996 | - | - | 1 996 | 99 % | 0 | - | 0 | 0 | 12 | - | - | 12 | ||
| 31 Language services | 499 | 378 | 23 | 40 | 441 | 89 % | 17 | - | 33 | 50 | 6 | 1 | 0 | 7 | ||
| 32 Energy | 1 752 | 1 504 | 6 | 79 | 1 588 | 91 % | 6 | - | 151 | 157 | 6 | 1 | 0 | 7 | ||
| 33 Justice and consumers | 270 | 251 | 4 | 4 | 259 | 96 % | 4 | - | 3 | 8 | 3 | 1 | 0 | 4 | ||
| 34 Climate action | 104 | 95 | 4 | 1 | 99 | 95 % | 4 | - | 1 | 4 | 0 | 0 | 0 | 1 | ||
| 40 Reserves | 479 | - | - | - | - | 0 % | - | - | - | - | 479 | - | - | 479 | ||
| 165 573 | 142 633 | 1 152 | 10 934 | 154 719 | 93 % | 682 | 470 | 9 001 | 10 154 | 592 | 86 | 22 | 700 |
Annual accounts of the European Commission 2019
2.9. POLICY AREA: MOVEMENTS IN OUTSTANDING COMMITMENTS (RAL)
Commitments outstanding at the end of previous year
01
02
03 04
05
06 07 08
09
10 11
12
13
14
15 16 17
Policy area
Economic and financial
affairs
Internal market, industry,
entrepreneurship and
SMEs
Competition
Employment, social affairs
and inclusion
Agriculture and rural
development
Mobility and transport
Environment
Research and innovation
Communications
networks, content and
technology
Direct research
Maritime affairs and
fisheries
Financial stability,
financial services and
capital markets union
Regional and urban policy
Taxation and customs
union
Education and culture
Communication
Health and food safety
Commitm.
carried
forward from
prev. year
3 273
Decommitments/ Revaluations/ Cancellations
2 913
13 44 192
35 938
10 281
1 422 14 315
2 646
214
3 302
15
(0)
Payments
(15) (1 311)
(21) (1 530)
| (0) | (12) |
| (461) | (14 474) |
| (45) | (14 201) |
| (93) | (2 394) |
| (131) | (281) |
| (146) | (5 101) |
| (136) | (981) |
| (27) | (123) |
| (76) | (834) |
(12)
Commitm. outstanding at year-end
4=1+2+3
Commitm.
made
during the
year
Commitments of the current year
Cancellation of
Payments
| 1 947 | 701 | (472) |
| 1 362 | 2 962 | (1 034) |
| - | 115 | (102) |
| 29 258 | 16 472 | (311) |
| 21 692 | 59 242 | (44 299) |
| 7 794 | 4 889 | (231) |
| 1 010 | 536 | (115) |
| 9 068 | 8 432 | (2 005) |
| 1 529 | 2 663 | (1 105) |
| 64 | 550 | (386) |
| 2 392 | 1 285 | (212) |
103
(91)
commitm.
which cannot
be carried-
Commitm. outstanding at year-end
8=5+6+7
| - | 229 |
| (1) | 1 927 |
| - | 13 |
| (0) | 16 161 |
| (0) | 14 943 |
| (1) | 4 658 |
| - | 421 |
| (1) | 6 425 |
| (0) | 1 558 |
| (0) | 164 |
| (0) | 1 073 |
12
EUR million
Total
commitm.
outstanding
at end of the
year
9=4+
2 176
3 289
13 45 419
36 634
12 451
1 431
15 493
3 087
228 3 465
15
| 120 918 | (287) | (37 895) | 82 737 | 47 408 | (1 017) | (0) | 46 391 | 129 127 |
| 158 | (5) | (93) | 60 | 185 | (88) | (0) | 97 | 157 |
| 2 858 | (129) | (1 191) | 1 537 | 4 995 | (3 313) | (0) | 1 681 | 3 218 |
| 67 | (3) | (58) | 6 | 221 | (159) | (0) | 62 | 68 |
| 473 | (12) | (237) | 225 | 640 | (351) | - | 289 | 514 |
over
1
2
3
5
6
7
3
Annual accounts of the European Commission 2019
Commitments outstanding at the end of previous year
Policy area
18
19 20
21
22
23 24
25
26
27 28 29
30
31 32 33 34 40
Migration and home
affairs
Foreign policy instruments
Trade
International cooperation
and development
Neighbourhood and
enlargement negotiations
Humanitarian aid and civil
protection
Fight against fraud
Commission's policy
coordination and legal
advice
Commission's
administration
Budget
Audit
Statistics
Pensions and related
expenditure
Language services
Energy
Justice and consumers
Climate action
Reserves
Commitm.
carried
forward from
prev. year
Decommitments/ Revaluations/ Cancellations
Total
5 143
1 066 24
9 571
14 472
977 33
21
217
15
1
122
25
5 302
244
368
280 599
Commitm.
Payments outstanding
at year-end
Commitm.
made
during the
year
EUR million
Commitments of the current year
Total
Cancellation of
commitm.
m.
commitm. Commitm.
outstanding
Payments which cannot outstanding
at end of the
he
be carried- at year-end
year
over
| (252) | (1 627) | 3 263 | 2 944 | (839) |
| (63) | (395) | 607 | 887 | (387) |
| (1) | (16) | 8 | 115 | (100) |
| (211) | (2 544) | 6 816 | 3 930 | (706) |
| (789) | (3 065) | 10 618 | 5 737 | (609) |
| (42) | (579) | 355 | 2 553 | (1 588) |
| (2) | (18) | 13 | 83 | (61) |
| (1) | (20) | 0 | 261 | (239) |
| (10) | (194) | 13 | 1 270 | (1 081) |
| (1) | (14) | - | 82 | (66) |
| (0) | (1) | - | 20 | (19) |
| (7) | (57) | 57 | 163 | (88) |
| - | - | - | 1 996 | (1 996) |
| (1) | (23) | - | 440 | (418) |
| (137) | (1 292) | 3 874 | 2 104 | (296) |
| (4) | (97) | 143 | 267 | (162) |
| (1) | (72) | 295 | 165 | (28) |
(0)
(0) (0)
(0)
2 105
500 16
3 224
5 128
965 21
22
5 368
1 107 24
10 040
15 746
1 320 34
22
(3 109) (90 742)
186 747 174 416 (63 977)
| (0) | 189 | 202 |
| - | 16 | 16 |
| - | 1 | 1 |
| - | 75 | 132 |
| (0) | - | - |
| - | 22 | 22 |
| (1) | 1 807 | 5 681 |
| (0) | 105 | 248 |
| - | 138 | 433 |
| - | - | - |
| (5) | 110 434 | 297 181 |
2
Annual accounts of the European Commission 2019
2.10. POLICY AREA: OUTSTANDING COMMITMENTS BY YEAR OF ORIGIN
EUR million
Policy area
01 Economic and financial affairs
02
Internal market, industry, entrepreneurship and
SMEs
03 Competition
04 Employment, social affairs and inclusion
05 Agriculture and rural development
06 Mobility and transport
07 Environment
08 Research and innovation
09
Communications networks, content and
technology
10 Direct research
11 Maritime affairs and fisheries
12
Financial stability, financial services and capital
markets union
13 Regional and urban policy
14 Taxation and customs union
15 Education and culture
16 Communication
17 Health and food safety
18 Migration and home affairs
19 Foreign policy instruments
20 Trade
21 International cooperation and development
22 Neighbourhood and enlargement negotiations
23 Humanitarian aid and civil protection
| - | 129 | - | 0 | 4 | 34 | 1 781 | 229 | 2 176 |
| 16 | 18 | 25 | 82 | 130 | 372 | 719 | 1 927 | 3 289 |
| - | - | - | - | - | - | - | 13 | 13 |
| 230 | 867 | 179 | 748 | 2 304 | 10 139 | 14 792 | 16 161 | 45 419 |
| 0 | 58 | 199 | 1 160 | 2 214 | 6 752 | 11 309 | 14 943 | 36 634 |
| 2 | 3 | 297 | 501 | 1 747 | 2 066 | 3 179 | 4 658 | 12 451 |
| 56 | 43 | 58 | 132 | 117 | 168 | 436 | 421 | 1 431 |
| 186 | 304 | 674 | 932 | 1 581 | 2 166 | 3 225 | 6 425 | 15 493 |
| 10 | 5 | 79 | 95 | 254 | 335 | 748 | 1 562 | 3 087 |
| 8 | 8 | 4 | 3 | 2 | 16 | 23 | 164 | 228 |
| 12 | 87 | 3 | 5 | 342 | 914 | 1 029 | 1 073 | 3 465 |
| - | - | 0 | - | - | 1 | 2 | 12 | 15 |
| 798 | 1 987 | 597 | 1 910 | 5 832 | 29 112 | 42 502 | 46 391 | 129 127 |
| - | - | 0 | 0 | 5 | 8 | 46 | 97 | 157 |
| 11 | 13 | 44 | 103 | 171 | 490 | 705 | 1 681 | 3 218 |
| 0 | - | 0 | 0 | 0 | 1 | 5 | 62 | 68 |
| 6 | 3 | 7 | 11 | 29 | 59 | 109 | 289 | 514 |
| 37 | 16 | 8 | 47 | 395 | 1 147 | 1 613 | 2 105 | 5 368 |
| 4 | 8 | 52 | 60 | 87 | 149 | 247 | 500 | 1 107 |
| - | - | - | 0 | 1 | 3 | 4 | 16 | 24 |
| 266 | 327 | 372 | 664 | 1 041 | 1 871 | 2 249 | 3 251 | 10 040 |
| 567 | 431 | 564 | 1 098 | 2 059 | 2 643 | 3 233 | 5 151 | 15 746 |
| _ | _ | 17 | 15 | 23 | 85 | 216 | 965 | 1 320 |
2013
2014
2015
2016
2017
2018
2019
Total
Annual accounts of the European Commission 2019
EUR million
Policy area
24 Fight against fraud
25
Commission's policy coordination and legal
advice
26 Commission's administration
27 Budget
28 Audit
29 Statistics
30 Pensions and related expenditure
31 Language services
32 Energy
33 Justice and consumers
34 Climate action 40 Reserves
Total
| - | - | - | 1 | 2 | 4 | 6 | 21 | 34 |
| - | - | - | - | - | - | 0 | 22 | 22 |
| - | - | 0 | 0 | 0 | 3 | 10 | 189 | 202 |
| - | - | - | - | - | - | - | 16 | 16 |
| - | - | - | - | - | - | (0) | 1 | 1 |
| - | 0 | 0 | 2 | 3 | 13 | 39 | 75 | 132 |
| - | - | - | - | - | - | - | 22 | 22 |
| 220 | 432 | 241 | 295 | 409 | 1 069 | 1 208 | 1 807 | 5 681 |
| 9 | 7 | 7 | 11 | 22 | 35 | 51 | 106 | 248 |
| _ | _ | 26 | 30 | 74 | 70 | 96 | 138 | 433 |
2 438
4 746
3 453
7 904
18 846
59 723
89 583
110 488
297 181
The set up of the new Commission involved an internal re-organisation of services. Re-allocating the related transactions resulted in a shift of outstanding amount between years. The overall amount of outstanding commitments remains unchanged.
2013
2014
2015
2016
2017
2018
2019
Total
Annual accounts of the European Commission 2019
RECONCILIATION OF ECONOMIC RESULT WITH BUDGET RESULT
ECONOMIC RESULT OF THE YEAR
2019
4 605
EUR million 2018
14 372
Revenue
Entitlements established in current year but not yet collected
Entitlements established in previous years and collected in current year Accrued revenue (net)
Expenses
Accrued expenses (net)
Amount from liaison account
Expenses prior year paid in current year
Net-effect pre-financing
Payment appropriations carried over to next year
Payments made from carry-overs & cancellation of unused payment
appropriations
Movement in provisions
Other
| (6 184) | (6 212) |
| 8 648 | 9 326 |
| 3 341 | (4 015) |
| 8 389 | 4 439 |
| 3 725 | 3 568 |
| (3 832) | (6 086) |
| (10 922) | (8 570) |
| (2 927) | (2 255) |
| 1 238 | 1 471 |
| 3 865 | 3 509 |
| (3 107) | (4 220) |
BUDGET RESULT OF THE YEAR
6 839
5 327
BUDGET RESULT OTHER INSTITUTIONS
BUDGET RESULT OF THE YEAR (EU)
(3 622) 3 217
(3 525) 1 802