Ref. Ares(2011)1314374 - 06/12/2011
Calculation and financing
of the definitive amount of the
correction of budgetary imbalances
in favour of the United Kingdom for the year 2007
(2007 UK correction)
(Working document of the services of the Commission)
22.11.2011
TABLE OF CONTENTS
1.
INTRODUCTION AND SUMMARY........................................................................ 3
2.
LEGAL BASIS AND PRESENTATION OF THE RESULTS .................................. 6
2.1. Legal basis ......................................................................................................... 6
2.2. Presentation of the results.................................................................................. 8
2.3. Main differences between the previously budgeted amount (1st update)
and the definitive amount ................................................................................ 10
3.
FINANCING OF THE DEFINITIVE AMOUNT ...................................................... 12
4.
ANNEX ..................................................................................................................... 14
1.
INTRODUCTION AND SUMMARY
This document explains the details of the calculation and financing1 of the
definitive amount of the correction of budgetary imbalances in favour of the United
Kingdom for year 2007 (2007 UK correction), as entered into the Amending Budget (AB)
4/2011, in comparison with the previously budgeted amount (1st update) that was entered
into the AB 3/2009.
The rules governing the inscription of the 2007 UK correction into the budget
(2007 Calculation Method2) call for several operations.
The provisional amount of the 2007 UK correction was calculated in May 2007 on the
basis of the input data then available (see table below). This provisional amount was
entered into the 2008 budget, and financed on the basis of the 2008 GNI bases adopted at
the meeting of the Advisory Committee on Own Resources (ACOR) in May 2007.
The 1st update of the 2007 UK correction was calculated in May 2008 on the basis of the
input data then available (see table below). The amount of this 1st update was entered in
the AB 5/2008, and financed on the basis of the 2008 GNI bases adopted at the ACOR
meeting in May 2008.
The above two steps were performed under ORD2000 provisions since the ORD2007
entered into force only in March 2009 following the completion of the lengthy process of
its ratification by all Member States. Thus, as a result of the entry into force of the
ORD2007 in March 2009 the 1st update of the 2007 UK correction was revised under
ORD2007 and re-entered into the AB 3/2009 (the specific AB devoted to take into account
the entry into force of the ORD2007).
The 2nd update of the 2007 UK correction was calculated in May 2009 on the basis of the
input data then available (see table below). The difference between this 2nd update and the
amount previously budgeted (1st update) did not exceed 4%3 of the amount previously
1
2
3
Based on Council Decision 2007/436 of 7 June 2007 on the system of the European Communities’ own
resources (ORD2007), available on:
http://eur-lex.europa.eu/LexUriServ/site/en/oj/2007/l_163/l_16320070623en00170021.pdf
The methodology for the budgetary inscription of the UK correction – as from the 2007 UK correction –
is set out in detail in the Commission working document of 23 May 2007 "Calculation, financing,
payment and entry in the budget of the correction of budgetary imbalances in favour of the United
Kingdom ("the UK correction") in accordance with Articles 4 and 5 of Council Decision 2007/436/EC,
Euratom on the system of the European Communities' own resources referred to as the 2007 Calculation
Method and available on:
http://ec.europa.eu/budget/library/biblio/documents/financing/calc_own_res_2007_en.pdf
The previous calculation method, referred to as the 2000 Calculation Method, was based on Council
Decision 2000/597 of 29 September 2000 on the system of the European Communities’ own resource
(ORD2000).
Until the year 2002, an informal DG Budget “rule of thumb" for proposing an update of the previously
budgeted amount of the UK correction was that the difference between the latest update and the
previously budgeted amount should exceed € 100 million. In April 2002, the European Court of
Auditors suggested to consider revising upward this threshold of € 100 million and to relate it to the size
of the UK correction. DG Budget consequently applies since 2003 a new informal “rule of thumb”
which is that the difference between the latest amount calculated and the previously budgeted amount
should exceed 4% of the previously budgeted amount in order to justify the budgeting of a new amount.
The provisional amount of the UK correction of a year n (entered in the initial budget of the year n+1)
is, however, always updated in an AB in the year n+1 with an updated amount (corresponding
budgeted. Therefore, this 2nd update was not proposed to update in an amending budget
6/2009 (devoted to a routine adjustment of own resources payments following the update
of the macroeconomic data) the amount of the 1st update entered initially in the AB 5/2008
and re-budgeted in the AB 3/2009.
The 3rd update of the 2007 UK correction was calculated in May 2010 on the basis of the
input data then available (see table below). The difference between this 3rd update and the
amount previously budgeted (1st update) did not exceed 4% of the amount previously
budgeted. Therefore, this 3rd update was not proposed to update in an amending budget in
2010 the amount of the 1st update entered in the AB 3/2009.
The definitive amount of the 2007 UK correction was calculated in May 2011 on the basis
of the input data then available (see table below). The difference between this
definitive amount and the amount previously budgeted (1st update entered in the
AB 3/2009) is entered in the AB 4/2011. The financing of this definitive amount is
recalculated on the basis of the 2008 GNI and VAT bases as known at the end of 2010.
Table 1 – Input data for the successive calculations of the 2007 UK correction
INPUT DATA
for calculation
2007 UK
CORRECTION
PROVISIONAL
AMOUNT
CALCULATION
YEAR
BUDGE
T
2007
Budget
2008
1 UPDATE
2008 &
2009*
AB
5/2008
under
ORD2000
& AB
3/2009
under
ORD2007
2nd UPDATE
2009
Not
Budgeted
3rd UPDATE
2010
Not
Budgeted
DEFINITIVE
AMOUNT
2011
AB
4/2011
st
INPUT DATA
for financing
2007 TOR
payments
2008 GNI
bases
2007
Expenditure
2007 GNI&
VAT bases
Forecast
Forecast agreed at
May 2007 ACOR
Forecast agreed
at May 2007
ACOR
Forecast agreed at
May 2007 ACOR
Outturn for 2007 bases as
know at end 2007 &
provisional growth rates
for 2007
Provisional
outturn
Forecast agreed at
May 2008 ACOR
Provisional
outturn
(forecasts for
carryovers)
Definitive
(traditional own
resources)
Outturn for 2008 bases
as know at end 2008 &
provisional growth rates
for 2008
Outturn as known at
end 2008
Definitive
Definitive
Outturn as known at
end 2009
Definitive
Outturn as known
at end 2009
Definitive
Outturn as known at
end 2010
Definitive
Outturn as known
at end 2010
(provisional for
carryovers)
(*) retroactive implementation of ORD2007 led to the revision of the 1st update of the 2007 UK correction
1st update) and updated financing (based on the updated forecast of GNI bases adopted at the ACOR
meeting in May of year n+1).
The definitive amount of the 2007 UK correction is calculated on the basis of:
- definitive data on accrual EU expenditure in each Member State relating to the
year 2007 (2007 appropriations for payments paid in 2007 as well as 2007
appropriations for payments carried over and paid in 2008),
- data on GNI & VAT bases for the year 2007, as transmitted by Member States in
20104,
- data on Traditional Own Resources (TOR) payments made available by the Member
States to the EU budget and relating to the year 2007,
The definitive amount of the 2007 UK correction is financed on the basis of data on GNI &
VAT bases for the year 2008, as transmitted by Member States in 20104.
The calculation of the definitive amount of the 2007 UK correction is € 6 877 184 806.
This figure is lower than the € 6 920 193 583 (1st update5) provisionally budgeted in the
AB 3/20096. The difference of € - 43 008 777 can be attributed to:
- revisions on the revenue side, increasing the UK share
of total 2007 EU uncapped VAT base,
with an estimated impact on the 2007 UK correction of:
€ + 54 051 706
- revisions on the expenditure side, increasing the UK share
of total 2007 allocated expenditure,
with an estimated impact on the 2007 UK correction of:
€ - 2 960 205
- revisions on the expenditure side, reducing
total 2007 allocated expenditure,
with an estimated impact on the 2007 UK correction of:
€ - 3 993 002
- revisions on the revenue side, increasing the UK advantage
(and consequently reducing the 2007 UK correction) by:
€ - 92 758 086
- revisions on the revenue side, reducing the TOR windfall gains
(and consequently increasing the 2007 UK correction) by: € + 2 650 811
4
5
6
In accordance with Article 2.2 of Council Regulation (EC) No 1287/2003 of 15 July 2003 and with
Article 7.1 of Council Regulation (EC) No 1553/89 of 29 May 1989.
The provisional amount of the 2007 UK correction entered in the Budget 2008 was € 5 757 931 681.
This provisional amount was calculated according to the 2000 Calculation Method. The 1st update, also
under 2000 Calculation Method, amounted to € 6 534 458 982 and entered into the AB 5/2008. Once
the 2007 Calculation Method entered in force (on 01.03.2009), a revised provisional amount of the
2007 UK correction (amounting to € 6 920 193 583) was calculated according to the
2007 Calculation Method and entered in the AB 3/2009.
The 2nd update of the 2007 UK correction was calculated in 2009 and amounted to € 6 819 587 742.
The 3rd update of the 2007 UK correction was calculated in 2010 and amounted to € 6 873 073 143. The
difference between the 2nd update and the amount previously budgeted (1st update budgeted in the
AB 3/2009) and the difference between the 3rd update and the amount previously budgeted did not
exceed 4 % of the amount previously budgeted. Following the “rule of thumb” (see footnote 3), the
2nd update and the 3rd update of the 2007 UK correction were not budgeted.
According to the provisions of the 2007 Calculation Method, the financing of the above
difference, entered in chapter 35 of the AB 4/2011, consists of the direct effect. The direct
effect is the difference - for each of the 26 Member States concerned - between the
definitive amount financed according to the 2008 GNI bases as transmitted in 2010 and the
previously budgeted amount (i.e. the 1st update) financed as in the AB 3/2009 (i.e.
according to the forecasts of 2008 GNI bases as agreed during the ACOR meeting of May
2009).
Section 2 of this document details the legal basis underlying the calculation and financing
of the 2007 UK correction, the main results obtained and the differences between the
definitive amount and 1st update. Section 3 examines the arithmetic of the financing of the
2007 UK correction by the 26 Member States concerned.
2.
LEGAL BASIS AND PRESENTATION OF THE RESULTS
Before commenting on the details of the definitive amount of the 2007 UK correction, it is
useful to recall the essential elements of the legal basis for its calculation and financing.
2.1.
Legal basis
The correction mechanism introducing a correction at the source in UK own resources
payments to the budget of the European Communities (EC) was agreed at the
Fontainebleau European Council of June 1984 and was given effect by Council Decision
85/257 of 7 May 1985. This Decision laid down the initial provisions concerning:
- the calculation of the UK correction by establishing its amount at 66 % of total EU
allocated expenditure multiplied by the difference between the UK share of the EU
uncapped VAT base and the UK share of total EU allocated expenditure,
- and the financing of the UK correction, according to Member States’ shares in the
uncapped VAT bases (excluding the UK which benefits from the correction and
consequently does not finance it), the share of Germany being reduced by ⅓.
Council Decision 88/376 of 24 June 1988 brought about substantial modifications in the
system of own resources. This Decision introduced an additional resource based on the
GNP of Member States and reduced the role of the VAT resource through the capping of
the VAT base at 55 % of the GNP of each Member State. In order to neutralize the effects
of these changes on the UK own resources payments, this Decision also modified some
provisions concerning the calculation of the UK correction (deduction of the so-called
UK advantage) and concerning the financing of the UK correction (to be split among the
other Member States according to their share in total EC GNP, the share of Germany still
being reduced by ⅓.
The system of own resources was further modified by Council Decision 94/728 of
31 October 1994. This Decision introduced a progressive reduction over the period 19951999 of the capping of the VAT base down to 50 % and of the maximum VAT call rate
down to 1 %. The modalities for calculating and financing the UK correction were left
unchanged.
The system of own resources was then modified by Council Decision 2000/597 of 29
September 2000. This Decision replaced, with effect from 01.01.2002, the reference to
GNP by a reference to GNI; introduced a further progressive reduction over the period
2002-2004 of the maximum VAT call rate down to 0.5 % and increased, as from
01.01.2001, the percentage of collection costs of Traditional Own Resources (TOR) to be
retained by Member States from 10 % to 25 %. This Decision also modified some
provisions concerning the calculation and financing of the UK correction, which can be
summarised as follows:
- neutralization on the UK own resources payments of the effects of the increase in the
percentage of TOR collection costs retained by Member States (deduction of the socalled TOR windfall gains) and partial offsetting of the effects of enlargement on the
UK correction (deduction of the so-called enlargement windfall gains, i.e. deduction
of the pre-accession expenditure [PAE] of the year before accession from total EU
allocated expenditure).
- reduction of the share of Germany, the Netherlands, Austria and Sweden in the
financing of the UK correction to ¼ of its normal value (the ¾ reduction being
financed by the remaining Member States, except the UK).
The system of own resources was modified again by Council Decision 2007/436 of 7 June
2007, which is currently in force. This Decision introduced (i) a further reduction of the
maximum VAT call rate down to 0.3 % (with – for the period 2007-2013 only - a reduced
rate of 0.225 % for Austria, 0.15 % for Germany and 0.10 % for the Netherlands and
Sweden); (ii) the temporary - for the period 2007-2013 only – gross reductions for the
Netherlands and Sweden in their annual GNI contributions of respectively € 605 million
and € 150 million measured in 2004 prices; (iii) and modified some provisions concerning
the calculation of the UK correction, which can be summarised as follows:
– progressive neutralization (see footnote 9) on the UK own resources payments of the
effects of the increase of the total expenditure allocated due to the enlargement of the
EU (i.e. reduction of the total allocated expenditure by total allocated expenditure in
Member States that have acceded to the EU after 30 April 2004, except for agricultural
direct payments and market-related expenditure as well as the part of rural development
expenditure originating from the EAGGF, Guarantee Section).
– capping the additional contribution of the UK resulting from the reduction of allocated
expenditure mentioned above at EUR 10.5 billion measured in 2004 prices7.
The modified modalities for calculating and financing the UK correction are detailed in
articles 4 and 5 of Council Decision 2007/436 and further developed in the
2007 Calculation Method, which applies as from the calculation and financing of the
2007 UK correction.
7
For 2007 UK correction definitive amount the phasing in ratio of the expenditure related to article
4(1)(g) equals 0%, thus the utilisation of the corresponding € 10.5 billion threshold amounts to € 0 for
2007 UK correction first budgeted in 2008.
2.2.
Presentation of the results
Table 2 – Calculation of the definitive amount of the 2007 UK correction
(in all tables hereafter, data are in euro, if not otherwise indicated)
(1)
(2)
(3)
(4)
(5)
(5a)
(5b)
(6)
(7)
(8)
(9)
(10)
(11)
UK share of uncapped VAT base
UK share of enlargement-adjusted total allocated expenditure
= (1) - (2)
Total allocated expenditure
Enlargement-related expenditure = (5a)+(5b)
Pre-accession expenditure8
Expenditure related to Art 4(1)(g)9
Enlargement-adjusted total allocated expenditure = (4) - (5)
UK correction original amount = (3) x (6) x 0.66
UK advantage
Core UK correction = (7) - (8)
TOR windfall gains
UK correction = (9) - (10)
17,4496%
7,2384%
10,2111%
105 275 791 730
2 930 808 042
2 930 808 042
0
102 344 983 688
6 897 392 491
67 188 488
6 830 204 004
- 46 980 802
6 877 184 806
8
In accordance with article 4(f) of Council Decision 2007/436: “at the time of each enlargement, an
adjustment […] [shall] reduce the compensation, thereby ensuring that expenditure which is unabated
before enlargement remains so after enlargement. This adjustment shall be made by reducing total
allocated expenditure by an amount equivalent to the annual pre-accession expenditure in the acceding
countries. All amounts so calculated shall be carried forward to subsequent years and shall be adjusted
annually by applying the euro GDP deflator used for the EU expressed in euro, as provided by the
Commission. This point shall cease to apply as from the correction to be budgeted for the first time in
2014". The 2007 Calculation Method further specifies the amount of this adjustment as the “preaccession expenditure of the last year before enlargement (i.e. 2003)”. In the present note, this amount
will simply be referred to as ‘pre-accession expenditure’ (PAE). For the 2007 UK correction and the
UK corrections of the subsequent years, PAE made to the 10 new Member States (which joined the
Union on 01.05.2004) under 2003 payment appropriations adjusted annually by applying the euro GDP
deflator is taken into account. PAE made to Bulgaria and Romania (joined the EU on 01.01.2007) under
2006 payments appropriations is similarly taken into account, and so will PAE for all future
enlargements.
9
The amount of expenditure related to Art 4(1)(g) corresponds to total allocated expenditure in those
Member States, except for agricultural direct payments and market-related expenditure as well as that
part of rural development expenditure originating from the EAGGF, Guarantee Section. This reduction
shall be phased in progressively: 0% for the UK correction to be budgeted for the first time in year
2008, 20% for 2009, 70% for 2010 and 100% for 2011. Thus, 0% x € 13 559 561 534 (see table H)
equals 0.
The basic data used and the calculation of the “UK advantage” and “TOR windfall gains”
are presented in the tables below (see tables from A to I in Annex for more details):
EU27
2007 data
Uncapped VAT base
Total allocated expenditure
Net TOR payments10
UK
UK share
5 822 743 773 171
1 016 043 938 255
17,4496%
105 275 791 730
7 408 168 184
7,04%
16 573 002 452
2 657 014 188
16,0322%
(8a)
Total capped VAT and GNP payments
94 150 885 218
(1)
UK share of uncapped VAT base
17,4496%
(8b)
UK share of capped VAT and GNP payments
17,3782%
(8)
UK advantage = (8a) x ( (1) – (8b) )
67 188 488
(10a)
Net TOR payments
16 573 002 452
(10b)
UK share of TOR payments
16,0322%
(1)
UK share of uncapped VAT base
17,4496%
(10)
TOR windfall gains = 0.211 x (10a) x ( (10b) - (1) )
- 46 980 802
10
Pursuant to Council Decision 2007/436, Article 4(e) TOR windfall gains correspond to the net
gains/losses of the UK resulting from the increase in the percentage retained by Member States to cover
TOR collection and related costs, and pursuant to articles 2(3) and 10(1) of ORD2000 this percentage
was increased from 10 % to 25 % as of 01.01.2001.
11
Pursuant to the 2007 Calculation Method, the TOR windfall gains are calculated as the gains for the UK
resulting from the increase [from 10 % to 25 %] in the percentage of resources retained by Member
States to cover [TOR] collection costs. This implies that TOR windfall gains are the results of the
multiplication between:
- the difference between the UK share of net TOR payments and the UK share of uncapped VAT base,
and
- the additional TOR collection costs, i.e. (25 % - 10 %) x (gross TOR payments) = 15 % x (net TOR
payments / 75 %) = 0.2 x (net TOR payments).
2.3.
Main differences between the previously budgeted amount (1st update) and
the definitive amount
2007 UK
correction
1st update
AB 3/2009
2007 UK CORRECTION
(1)
(2)
(3)
(4)
(5)
(5a
)
(5b
)
(6)
(7)
(8)
(9)
(10
)
(11
)
UK share of uncapped VAT base
UK share of enlargement-adjusted total allocated
expenditure
= (1) - (2)
Total allocated expenditure
Enlargement-related expenditure = (5a)+(5b)
Pre-accession expenditure
17,3696%
17,4496%
7,2340%
7,2384%
10,1356%
105 334 416 783
2 930 184 072
10,2111%
105 275 791 730
2 930 808 042
2 930 184 072
2 930 808 042
0
0
102 404 232 710
6 850 293 993
- 25 569 599
6 875 863 592
102 344 983 688
6 897 392 491
67 188 488
6 830 204 004
- 44 329 991
- 46 980 802
6 920 193 583
6 877 184 806
Expenditure related to Art 4(1)(g)
Enlargement-adjusted total allocated expenditure = (4) - (5)
UK correction original amount = (3) x (6) x 0.66
UK advantage
Core UK correction = (7) - (8)
TOR windfall gains
UK correction = (9) - (10)
2007 UK
correction
DEFINITIVE
AB 4/2011
The difference of € - 43 008 777 between the definitive amount and the 1st update of the
2007 UK correction can be attributed and split as detailed in the five tables hereafter (in
the first three tables, only one item by table is modified and the others left unchanged in
order to isolate the impact of each variation on the amount of the 2007 UK correction).
- Change in the UK share of uncapped VAT base:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
UK share of uncapped VAT base
UK share of enlargement-adjusted total
allocated exp.
= (1) - (2)
Total allocated expenditure
Enlargement-related expenditure
Enlagement-adjusted allocated expenditure
= (4) - (5)
UK correction original amount = (3) x (6) x
0.66
17,3696%
17,4496%
7,2340%
7,2340%
10,1356%
105 334 416 783
2 930 184 072
10,2155%
105 334 416 783
2 930 184 072
102 404 232 710
102 404 232 710
6 850 293 993
6 904 345 699
Change
+ 54.051.706
- Change in the UK share of total allocated expenditure:
(1)
(2)
UK share of uncapped VAT base
UK share of enlargement-adjusted total
allocated expenditure
(3)
= (1) - (2)
(4)
Total allocated expenditure
(5)
Enlargement-related expenditure
Enlargement-adjusted allocated expenditure =
(4) - (5)
UK correction original amount = (3) x (6) x 0.66
(6)
(7)
17,4496%
17,4496%
7,2340%
7,2384%
10,2155%
105 334 416
783
2 930 184 072
102 404 232
710
6 904 345 699
10,2111%
Change
105 334 416 783
2 930 184 072
102 404 232 710
6 901 385 494
- 2.960.205
- Change in total allocated expenditure:
(1)
(2)
UK share of uncapped VAT base
UK share of enlargement-adjusted total
allocated expenditure
(3)
= (1) - (2)
(4)
Total allocated expenditure
(5)
Enlargement-related expenditure
Enlargement-adjusted allocated expenditure =
(4) - (5)
UK correction original amount = (3) x (6) x 0.66
(6)
(7)
17,4496%
17,4496%
7,2384%
7,2384%
10,2111%
105 334 416
783
2 930 184 072
102 404 232
710
6 901 385 494
10,2111%
Change
105 275 791 730
2 930 808 042
102 344 983 688
6 897 392 491
- 3.993.002
- Change in the “UK advantage”:
(8a)
(1)
(8b)
Total capped VAT and GNI payments
UK share of uncapped VAT base
UK share of capped VAT and GNI payments
(8)
UK advantage = (8a) x ( (1) - (8b) )
94 225 762 454
17,3696%
17,3967%
94 150 885 218
17,4496%
17,3782%
- 25 569 599
67 188 488
16 573 002 452
16 573 002 452
Change
- 92.758.086
- Change in TOR windfall gains:
(10a)
Net TOR payments
(10b)
UK share of TOR payments
16,0322%
16,0322%
(1)
UK share of uncapped VAT base
17,3696%
17,4496%
(10)
TOR windfall gain = 0.2 x (10a) x ( (10b) - (1) )
- 44 329 991
- 46 980 802
Change
+ 2.650.811
3.
FINANCING OF THE DEFINITIVE AMOUNT
Article 5 of Council Decision 2007/436 and the 2007 Calculation Method lays down
precise and detailed rules on the financing of the UK correction:
Pursuant to article 5 of Council Decision 2007/436, the burden of financing the
UK correction (of a year n) is shared among the Member States in proportion to their
GNI bases12 of the following year (year n+1). The UK does not participate in the
financing of its own correction and the share of Germany, the Netherlands, Austria and
Sweden is reduced by ¾. The reduction granted to Germany, the Netherlands, Austria and
Sweden is again shared out among the other Member States (i. e. all except the UK,
Germany, the Netherlands, Austria and Sweden) in proportion to their GNI. These
contributions which all Member States, except the UK, have to pay are usually called the
direct effect of the correction mechanism.
In accordance with the 2007 Calculation Method, for the financing of the definitive
amount of the UK correction, the direct effect is taken into account and entered in chapter
35 of the EU Budget.
12
in accordance with article 2(7) of Council Decision 2007/436.
Table 3 – Financing of the 2007 UK correction definitive amount - total
(figures with positive sign are payments from Member States to the EU budget)
Calculation of the financing of the correction 2007 definitive amount for the United Kingdom amounting to:
Member State
Shares without Germany, Three quarters of the share
Column 4 distributed
Percentage share of Shares without the the Netherlands, Austria,
of Germany, the
in accordance with
GNI base
United Kingdom
Sweden and the United Netherlands, Austria and
column 3
Kingdom
Sweden in column 2
(1)
Belgium
Bulgaria
Czech Republic
Denmark
Germany
Estonia
Ireland
Greece
Spain
France
Italy
Cyprus
Latvia
Lithuania
Luxembourg
Hungary
Malta
Netherlands
Austria
Poland
Portugal
Romania
Slovenia
Slovak Republic
Finland
Sweden
United Kingdom
Total
6.877.184.806
(2)
(3)
(4)
(5)
Financing scale
Financing scale
applied to the
correction
(6) = (2) + (4) + (5)
(7)
2,81
0,27
1,14
1,90
20,30
0,12
1,25
1,83
8,49
15,82
12,37
0,13
0,18
0,25
0,24
0,80
0,04
4,68
2,25
2,85
1,32
1,09
0,29
0,50
1,49
2,79
14,78
3,30
0,32
1,33
2,23
23,82
0,14
1,47
2,15
9,96
18,56
14,51
0,15
0,22
0,30
0,28
0,93
0,05
5,49
2,64
3,34
1,55
1,28
0,34
0,59
1,75
3,28
0,00
5,09
0,49
2,06
3,44
0,00
0,22
2,27
3,32
15,37
28,66
22,41
0,24
0,33
0,46
0,43
1,44
0,08
0,00
0,00
5,16
2,40
1,98
0,53
0,91
2,70
0,00
0,00
0
0
0
0
-17,87
0
0
0
0
0
0
0
0
0
0
0
0
-4,12
-1,98
0
0
0
0
0
0
-2,46
0
1,35
0,13
0,54
0,91
0,00
0,06
0,60
0,88
4,06
7,57
5,92
0,06
0,09
0,12
0,11
0,38
0,02
0,00
0,00
1,36
0,63
0,52
0,14
0,24
0,71
0,00
0,00
4,65
0,45
1,88
3,14
5,96
0,20
2,07
3,03
14,02
26,13
20,44
0,22
0,30
0,42
0,39
1,32
0,07
1,37
0,66
4,71
2,19
1,81
0,48
0,83
2,47
0,82
0,00
319.517.851
30.840.992
129.159.002
215.848.304
409.597.321
13.847.084
142.099.401
208.052.359
964.148.683
1.797.255.494
1.405.415.555
14.863.890
20.955.769
28.614.260
27.089.491
90.482.257
5.053.453
94.424.581
45.356.365
323.648.948
150.353.870
124.300.764
33.068.053
57.271.923
169.607.486
56.311.649
0
100,00
100,00
100,00
-26,42
26,42
100,00
6.877.184.806
4.
ANNEX
Table A – 2007 uncapped VAT base
(1) UK share of uncapped VAT base
uncapped VAT base 2007
as known at end 2010
converted in euros using DG ECFIN
2007 annual average exchange rate
EUR
share in %
BE
139.784.365.823
2,40%
BG
16.691.732.052
0,29%
CZ
58.338.941.954
1,00%
DK
95.865.598.755
1,65%
DE
1.018.557.694.546
17,49%
EE
8.426.787.334
0,14%
IE
93.543.728.897
1,61%
EL
121.462.117.527
2,09%
ES
622.599.540.005
10,69%
FR
910.904.099.180
15,64%
IT
657.163.438.362
11,29%
CY
13.863.017.543
0,24%
LV
10.653.685.684
0,18%
LT
13.978.092.100
0,24%
LU
18.288.675.519
0,31%
HU
42.189.911.898
0,72%
MT
3.851.667.692
0,07%
NL
273.111.484.841
4,69%
AT
117.763.825.811
2,02%
PL
169.158.118.223
2,91%
PT
95.197.830.576
1,63%
RO
49.135.671.448
0,84%
SI
17.579.002.142
0,30%
SK
21.382.992.366
0,37%
FI
75.062.543.333
1,29%
SE
142.145.271.304
2,44%
UK
1.016.043.938.255
17,4496%
EU-27
5 822 743 773 171
100,00%
Table B – 2007 EU allocated expenditure
(3) 2007 accrual
= (1) + (2)
(2) Carryovers
(1) 2007 current
2007 to 2008
(2) UK share of enlargement-adjusted total allocated expenditure
Natural resources
Sustainable growth
Citizenship, FLS
Administration
PAE to new MS
Compensation
Other
TOTAL
Natural resources
Sustainable growth
Citizenship, FLS
Administrative Expenditure
PAE to new MS
Other
TOTAL
Natural resources
Sustainable growth
Citizenship, FLS
Administrative Expenditure
PAE to new MS
Compensation
Other
UK opt-out (18 02 03-05-06)
TOTAL (excl. opt-out)
7,2384%
Payments
appropriations
Payments executed
(a)
(b)
54 156 465 736
53 796 925 309
43 622 184 292
43 195 727 443
1 228 109 238
1 003 416 016
6 977 764 032
6 079 345 318
included in 'Other' below
444 646 152
444 646 152
7 416 645 965
7 054 271 631
113 845 815 415
111 574 331 868
47 082 156
36 971 940
185 639 026
147 053 658
93 564 910
59 244 386
770 938 681
685 833 885
included in 'Other' below
85 226 543
65 451 628
1 182 451 316
994 555 498
54 203 547 892
53 833 897 249
43 807 823 318
43 342 781 101
1 321 674 148
1 062 660 403
7 748 702 713
6 765 179 202
included in 'Other' below
444 646 152
444 646 152
7 501 872 508
7 119 723 259
- 82 597 497
115 028 266 731
112 486 289 869
Payments allocated
to EU27
(4) Total allocated exp.
Payments allocated
to the UK
(d)
53 634 148 848
42 368 239 144
965 190 266
5 599 203 880
1 451 978 085
444 646 152
(f)
4 214 808 141
3 003 405 184
41 996 265
130 662 033
104 463 406 374
35 229 435
143 272 128
59 157 051
622 570 978
34 753 260
7 390 871 622
1 380 523
2 548 672
1 665 451
11 701 916
894 982 852
53 669 378 283
42 511 511 272
1 024 347 317
6 221 774 858
1 486 731 344
444 646 152
17 296 562
4 216 188 664
3 005 953 856
43 661 715
142 363 949
- 82 597 497
105 275 791 730
0
7 408 168 184
105 275 791 730
Share in EU27
allocated to the
UK
(g) = (f) / (d)
7,04%
Note: Data on payments appropriations and payments executed as detailed in the 2007 annual accounts (for 2007 current) and 2008 annual accounts (for carryovers from 2007 to 2008).
Data on payments allocated to EU-27 and the UK as extracted from the budgetary accounting system of the Commission (ABAC).
Table C – Net 2007 TOR payments
(10a) Net TOR payments
& (10b) UK share of TOR payments
Net TOR 2007 (75%)
definitive annual accounts
BE
BG
CZ
DK
DE
EE
IE
EL
ES
FR
IT
CY
LV
LT
LU
HU
MT
NL
AT
PL
PT
RO
SI
SK
FI
SE
UK
EU-27
EUR
1 685 064 032
60 772 772
178 829 610
329 791 027
3 126 815 383
42 844 674
218 043 736
229 637 821
1 290 133 102
1 332 516 338
1 687 249 781
46 423 884
30 864 540
45 442 069
19 190 685
110 874 110
11 832 136
1 873 463 919
201 105 947
338 447 175
137 085 986
159 155 074
82 546 467
90 503 262
148 930 631
438 424 101
2 657 014 188
16 573 002 452
Note: Data as detailed in the 2007 annual accounts.
share in %
10,17%
0,37%
1,08%
1,99%
18,87%
0,26%
1,32%
1,39%
7,78%
8,04%
10,18%
0,28%
0,19%
0,27%
0,12%
0,67%
0,07%
11,30%
1,21%
2,04%
0,83%
0,96%
0,50%
0,55%
0,90%
2,65%
16,0322%
100,00%
Table D – Input data for the calculation of the “UK advantage”
(8a) Total capped VAT and GNI payments
Budget 2007
Total executed exp.
Other revenue all fund sources
Titles 4 to 9 3rd parties
BE
BG
CZ
DK
DE
EE
IE
EL
ES
FR
IT
CY
LV
LT
LU
HU
MT
NL
AT
PL
PT
RO
SI
SK
FI
SE
UK
EU-27
GNI base 2007
as known at end
2010
(converted along
DG ECFIN 2007
average exch. rate)
capped
VAT base 2007
EUR
EUR
2
1
1
1
2
12
333 694 800 000
28 263 113 815
117 093 459 627
227 621 734 295
450 860 000 000
14 505 468 159
162.084.801.259
215 662 493 148
015 204 000 000
898 428 000 000
518 312 000 000
15.011.242.126
20 302 028 282
27 273 625 465
29 865 852 124
92 241 312 910
5.240.175.670
573 134 000 000
266 086 956 000
295 933 081 375
160 484 378 418
119.557.850.868
33 429 284 353
52 443 849 001
178 257 000 000
343 697 905 969
044 198 790 075
238 887 202 941
139
14
58
95
1018
7
81
107
507
910
657
7
10
13
14
42
2
273
117
147
80
49
16
21
75
142
1016
5 629
784
131
338
865
557
252
042
831
602
904
163
505
151
636
932
189
620
111
763
966
242
135
714
382
062
145
043
079
365
556
941
598
694
734
400
246
000
099
438
621
014
812
926
911
087
484
825
540
189
671
642
992
543
271
938
549
823
908
954
755
546
080
630
574
000
180
362
063
141
733
062
898
835
841
811
688
209
448
177
366
333
304
255
976
2007 VAT callrates
0,3%
16 573 002 452
VAT at call rate
Financed by GNI (estimated)
14 440 565 726
79 710 319 492
Total capped 2007
VAT & GNI
payments
EUR
EUR
EUR
1
1
2
1
0,3%
(8b) UK share of capped VAT and GNI payments
3 704 553 050
Net TOR
2007 GNI
called
0,1%
0,225%
0,1%
0,3%
5 466 955 249
2007 VAT
at call rate
0,3%
0,15%
EUR
112 486 289 869
3
14
419
42
175
287
527
21
243
323
522
732
971
22
30
40
44
126
7
273
264
443
240
147
50
64
225
142
048
440
353
394
016
596
836
758
127
493
806
712
490
516
453
910
798
569
860
111
968
899
726
407
143
148
187
145
131
565
097
671
826
796
542
202
202
740
000
298
315
863
042
438
778
736
264
485
608
622
568
014
927
977
630
271
815
726
2 173
184
762
1 482
15 962
94
1 055
1 404
6 611
12 364
9 888
97
132
177
194
600
34
3 732
1 732
1 927
1 045
778
217
341
1 160
2 238
13 313
79 710
311
074
614
471
140
472
637
582
894
220
573
766
224
629
512
755
128
749
990
374
214
665
720
560
965
460
607
319
893
074
846
475
217
274
745
455
844
693
414
315
534
662
506
967
599
023
584
611
395
113
688
135
224
853
353
492
2 592 664 991
226 468 745
937 631 672
1 770 068 271
17 489 976 759
116 230 476
1 298 764 947
1 728 076 195
8 134 700 844
15 096 932 990
11 860 063 729
120 283 179
162 677 577
218 540 100
239 311 284
727 325 703
41 988 863
4 005 860 508
1 997 959 192
2 371 274 233
1 285 940 962
926 072 128
267 864 614
405 709 112
1 386 152 854
2 380 606 125
16 361 739 168
94 150 885 218
17,3782%
Notes: 2007 GNI bases, as transmitted by Member States in 2010, in accordance with Article 2.2 of Council Regulation (EC) No 1287/2003 of 15 July 2003. The amount to be financed by the 2007 GNI-based own resource
(€ 79 710 319 492) is equal to the total of accrual 2007 executed payments (€ 112 486 289 869, see table B above) from which is deducted 2007 miscellaneous revenue (€ 5 466 955 249, corresponding to revenue of titles 4 to 9 as
detailed in the 2007 annual accounts, except for the third parties revenues of € 3 704 553 050), net 2007 TOR payments (€ 16 573 002 452, see table C above) and 2007 VAT-based payments at uniform rate (€ 14 440 565 726, as detailed
above).
Table E –Pre-accession expenditure for Bulgaria and Romania (accession on 01/01/2007)
PAE BG & RO
Carryovers 20062007
Current 2006
TOTAL 2006
ACCRUAL
BG
358 648 538
745 448
359 393 986
RO
691 237 210
828 912
692 066 122
1 049 885 749
1 574 360
1 051 460 108
TOTAL
Note: Data as extracted from the budgetary accounting system of the Commission (ABAC) in 2006 for current 2006 and in 2007 for carry-overs 2006-2007.
.
Table F –Pre-accession expenditure for EU10 (accession on 01/04/2004)
(5) Pre-accession expenditure (PAE)
Current 2003
Carryovers 2003
to 2004
TOTAL 2003
ACCRUAL
CZ
227 900 592
1 142 007
229 042 599
EE
75 004 532
299 446
75 303 978
CY
16 887 300
325 053
17 212 353
LV
79 128 291
407 748
79 536 039
LT
307 190 316
424 824
307 615 139
HU
189 295 469
1 002 675
190 298 144
MT
10 159 277
256 440
10 415 717
PL
683 711 787
1 866 824
685 578 611
SI
58 425 916
398 970
58 824 886
103 784 443
540 173
104 324 616
1 751 487 922
6 664 160
1 758 152 082
SK
TOTAL
Note: Data as extracted from the budgetary accounting system of the Commission (ABAC) in 2003 for current 2003 and in 2004 for carry-overs 2003-2004.
Table G –Total pre-accession expenditure for 2007 UK correction definitive amount.
PAE EU-10 (2003 amount)
1 758 152 082
EU-25 GDP deflator 2003/2004
DG ECFIN spring 2011 eco. forecast
2,3301
EU-25 GDP deflator 2004/2005
DG ECFIN spring 2011 eco. forecast
2,1284
EU-25 GDP deflator 2005/2006
DG ECFIN spring 2011 eco. forecast
2,2824
PAE BG & RO (2006 amount)
1.051.460.108
(5a) Pre-accession expenditure (PAE)
2006
2 930 808 042
Note: See footnote 8.
Table H – The amount of expenditure related to Art 4(1)(g)
(5b) Non-guarantee agricultural expenditure to new MS
Current 2007
Total
C/O '07 to '08
Total
Current 2007
H2 2.0.1
C/O 07-08
H2 2.0.1
RD 2007
Total (Current + C/O)
Guarantee
share (#)
RD 2007
"Guarantee"
TOTAL 2007
ACCRUAL
(A)
(B)
(C)
(D)
(E)
(F)
(G) = (E) x (F)
(H) = (A) + (B) - (C)
- (D) - (G)
BG
590 729 777
2 741 543
928 091
0
1 001
79,4%
795
592 542 435
CZ
1 717 978 317
1 786 088
351 803 597
0
359 133 407
48,9%
175 576 364
1 192 384 444
297 004 172
EE
375 039 668
737 819
38 537 641
0
71 499 937
56,3%
40 235 674
CY
123 303 253
1 038 078
27 792 261
0
29 194 044
100,0%
29 194 044
67 355 026
LV
673 514 510
933 398
54 997 351
0
112 259 143
76,7%
86 085 955
533 364 602
LT
1 042 343 951
54 526 263
168 389 368
0
308 195 903
67,0%
206 496 904
721 983 943
HU
2 424 570 700
1 755 106
475 897 819
41 450
476 045 082
37,7%
179 480 418
1 770 906 119
MT
88 304 714
1 303 475
2 022 241
43 678
5 245 446
77,4%
4 058 882
83 483 388
PL
7 780 018 106
38 856 147
1 211 439 951
0
1 897 319 946
51,5%
976 460 731
5 630 973 571
RO
1 601 551 347
1 046 863
8 372 581
0
1 162
0,0%
0
1 594 225 629
SI
388 455 453
1 373 142
49 114 977
0
128 950 320
67,3%
86 772 687
253 940 930
46,8%
SK
1 080 975 406
1 296 931
158 261 219
799
219 275 393
TOTAL
17 886 785 203
107 394 853
2 547 557 097
85 927
3 607 120 782
102 613 043
821 397 276
1 886 975 497
13 559 561 534
phase-in % for 2007 0%
Note: Data as extracted from the budgetary accounting system of the Commission (ABAC) in 2007 for current 2007 and in 2008 for carry-overs 2007-2008.
TOTAL
0
Table I – Definitive amount of the 2007 UK correction – direct effect along 2008 GNI bases as known at end 2010
BE
BG
CZ
DK
DE
EE
IE
EL
ES
FR
IT
CY
LV
LT
LU
HU
MT
NL
AT
PL
PT
RO
SI
SK
FI
SE
UK
EU-27
(1) 2007 UK correction
definitive
direct effect
along GNI 2008 as end of
2010
(2) 2007 UK
correction
1st UPDATE
direct effect
along GNI 2008
of AB 3/2009
EUR
EUR
319
30
129
215
409
13
142
208
964
1 797
1 405
14
20
28
27
90
5
94
45
323
150
124
33
57
169
56
-6 877
517
840
159
848
597
847
099
052
148
255
415
863
955
614
089
482
053
424
356
648
353
300
068
271
607
311
184
851
992
002
304
321
084
401
359
683
494
555
890
769
260
491
257
453
581
365
948
870
764
053
923
486
649
806
0
318 810
30 305
122 414
221 137
410 468
14 836
148 710
218 446
978 612
1 801 354
1 437 862
14 935
20 802
28 505
27 204
89 724
5 042
95 107
45 996
309 525
147 196
116 558
32 410
53 404
174 605
56 212
FINANCING (chapter 35)
direct effect
= (1) - (2)
AB 4/2011
EUR
944
680
646
445
213
973
316
611
604
035
200
494
589
959
002
469
368
670
662
705
952
509
910
281
455
891
-6 920 193 583
0
+ 706.907
+ 535.312
+ 6.744.356
- 5.289.141
- 870.892
- 989.889
- 6.610.915
- 10.394.252
- 14.463.921
- 4.098.541
- 32.446.645
- 71.604
+ 153.180
+ 108.301
- 114.511
+ 757.788
+ 11.085
- 683.089
- 640.297
+ 14.123.243
+ 3.156.918
+ 7.742.255
+ 657.143
+ 3.867.642
- 4.997.969
+ 98.758
+ 43.008.777
0
%
-0,22%
-1,74%
-5,22%
2,45%
0,21%
7,15%
4,65%
5,00%
1,50%
0,23%
2,31%
0,48%
-0,73%
-0,38%
0,42%
-0,84%
-0,22%
0,72%
1,41%
-4,36%
-2,10%
-6,23%
-1,99%
-6,75%
2,95%
-0,18%
0,63%