Active Monitoring and Forecast of Budget Implementation Summer Information Note

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1 5 July INFO() 67 Active Monitoring and of Budget Summer Information Note Contents 1. SUMMARY AND CONCLUSIONS INTRODUCTION IMPLEMENTATION OF THE BUDGET at 15 June forecasts Programmes with significant deviation from forecasts or implementation of last year PAYMENTS ON PREVIOUS YEARS' INVOICES Methodology payments on invoices received in payments on invoices received before LATE INTEREST PAYMENTS ANNEX 1: IMPLEMENTATION AND FORECAST PAYMENTS ANNEX 2A: PAYMENTS ON INVOICES RECEIVED IN ANNEX 2B: PAYMENTS ON INVOICES RECEIVED IN 2014 AND BEFORE... 20

2 1. SUMMARY AND CONCLUSIONS By 15 June implementation of payment appropriations amounted to EUR 66,9 billion (47,6 % of available appropriations), below the corresponding level of June 2015 (61,8% of available appropriations implemented). The slower pace of implementation results mostly from delayed direct aid payments in agriculture as well as lower level of submission of Member States' payment claims under the previous programming period in cohesion policy. Excluding the nondifferentiated appropriations of the European Agriculture Guarantee Fund and heading 5, implementation is at 43,2%, slightly ahead of the forecasts of 42,5%. After several years of constrained payment appropriations, in, the Commission expects the available payment appropriations to be more than sufficient to cover needs. In particular, slower pace of submissions of Member States' payment applications for both previous and current programming periods in heading 1b Economic, social and territorial cohesion, is very likely to result in a surplus. After receiving the updated forecasts from Member States at the end of July, the Commission will be in a better position to estimate the size of such a surplus. Although the implementation rate in heading 1a Competitiveness for Growth and Jobs is ahead compared to the forecast and to the previous year, by the end of the year a surplus of payment appropriations could also appear. In heading 2, the delay in the European Agricultural Guarantee Fund payments (first pillar of the Common Agricultural Policy) is worrying, especially if this delay is not absorbed by the deadline (15 October) for EAGF declarations. The Commission is monitoring the situation very closely in cooperation with the Member States concerned. In the period between January and June, EUR 8,6 billion was paid on invoices received in previous years, compared to EUR 20,4 billion a year earlier. Heading 1b continues to account for a great majority of such payments though its share is declining (62% in, 85% in 2015). This decrease is to a large extent explained by the sharp decrease of the backlog at the end of 2015 in comparison with the backlog at the end of A steep decrease in payments on previous years' invoices along with considerably diminished interests on late payments (EUR 0,5 million at this point of the year, compared to almost EUR 2 million a year earlier) points to a clear improvement of the situation of payment appropriations, in line with the 'payment plan' agreed by the European Parliament, the Council and the Commission. 2

3 2. INTRODUCTION This report on the Active Monitoring and of Budget is the third of its kind (after 2015 Summer and Autumn reports), and is a further follow up to the "Joint statement on a payment plan 2015-" agreed by the European Parliament, the Council and the Commission on 19 May It compares the actual implementation of payment appropriations on 15 June to the forecasts prepared in March as well as implementation of the same point of last year. The report analyses also the main programme deviations between implementation and forecasts as well as last year's implementation. As it is the first report for produced after the provisional closure of the accounts for 2015, the following section 3 analyses the level of payments on invoices received in 2015 and before. This is a good indicator allowing an evaluation of the backlog at the end of 2015 and the speed of payments on this backlog. Section 4 gives the latest figures on the late payments interests. Finally, numerical annexes provide a full picture (at programme level) of the state of implementation in comparison with the forecasts and the implementation of last year, as well as of the pace of payment of invoices, unpaid at the end of

4 3. IMPLEMENTATION OF THE BUDGET 3.1. at 15 June This section compares the implementation on 15 June with the monthly forecasts, and with the level of implementation at the same point in The analysis focuses on payment appropriations by heading. Furthermore, for those programmes having a significant impact on the budget 1, it provides more detailed analysis, when the implementation on 15 June deviates from the implementation forecast by more than 15 percentage points or by 15 percentage points compared to implementation at the same time in The following table shows the implementation by heading on 15 June, the forecast for the same date, and the implementation a year earlier. MFF HEADING Available appropriations* (15 Jun ) 1a. Competitiveness for growth and jobs , ,1 41,1% 6 623,9 37,8% 6 202,1 39,5% 1b. Economic, social and territorial cohesion , ,6 41,9% ,3 41,0% ,3 48,9% 2. Sustainable growth: Natural Resources (EAGF) , ,4 57,5% ,8 89,5% 2. Sustainable growth: Natural Resources (other) , ,3 49,7% 6 359,3 49,3% 8 080,0 63,2% 3. Security and Citizenship 3 031, ,7 41,6% 1 387,5 45,8% 615,3 31,2% 4. Global Europe , ,2 45,5% 4 900,2 48,2% 3 747,1 48,7% 5. Administration 5 448, ,1 44,5% 2 395,3 44,0% 2 457,0 46,4% Total , ,2 47,6% ,5 61,8% Total without EAGF and heading , ,7 43,2% ,2 42,5% ,8 48,9% * excluding assigned rev enue (15 Jun ) forecast (mid-jun ) (15 Jun 2015) On 15 June, the implementation of payment appropriations reached EUR 66,9 billion (47,6% of available appropriations). Excluding the European Agricultural Guarantee Fund (EAGF) and administrative expenditure (heading 5), which are non-differentiated appropriations, the implementation was EUR 40,0 billion (43,2% of available appropriations). This level of implementation is EUR 644 million ahead of the forecast. In comparison with the implementation at the same time in 2015, implementation on 15 June is significantly lower in both absolute (EUR 18,8 billion) and relative terms (14,2 percentage points). This gap can be attributed mostly to the lower direct aid payments in agriculture at this point of the year due to delays resulting from implementation of some important elements of the Common Agriculture Policy reform. It is already clear by this stage of the year that the full implementation will not be reached for all headings. A surplus of payment appropriations is expected in particular in heading 1. 1 Defined as the programmes having at least EUR 200 million of payment appropriations in. 4

5 At the level of headings, the table provides the following information: For sub-heading 1a (Competitiveness for growth and jobs), implementation is higher in both absolute (over EUR 1 billion) and relative (1,6 percentage points) than in It is also significantly ahead of the forecasts (almost EUR 580 million). Notwithstanding the high current implementation, heading 1a could have more appropriations than existing needs in, but this needs to be confirmed during the second budget forecast exercise (in August). For sub-heading 1b (Economic, Social and Territorial Cohesion), the implementation is lower in both absolute and percentage terms than in 2015 (the budget in is also lower than in 2015). This can be explained by a rising number of programmes reaching the 95% payment ceilings (the remaining 5% will only be paid out at closure). The lower payments to Member States for programmes are not offset by payment claims linked to the programmes. The implementation is in turn slightly higher than the forecast (over EUR 400 million). The Commission is closely monitoring the pace of submission of Member States payment applications in and will analyse the results of the updated Member States forecast (due by 31 July ) in order to provide an estimate of the possible surplus of payment appropriations. Heading 2 (Sustainable growth: Natural Resources, EAGF) implementation is clearly much below its level in 2015, which can be explained by delays in the implementation of the new direct payment schemes in agriculture in its first year after the CAP reform under the MFF Other programmes in heading 2 than the EAGF (mostly rural development) show a significantly lower implementation in than in 2015 in both absolute (almost EUR million) and percentage terms (13,5 percentage points). This is the result of the lower payments for rural development programmes. The implementation of these "other" programmes is very much in line with the forecasts. Whereas implementation in heading 3 (Security and Citizenship) in absolute terms is over twice as high as in 2015 (almost 10 percentage points), it is also slightly below the forecasts (EUR 127 million). For heading 4 (Global Europe), implementation is higher in comparison with 2015 in absolute terms (EUR 884 million), though lower in terms of percentage (3,2 percentage points). In addition, it is also EUR 269 million lower than the forecasts. Some appropriations forecasted to be unused within European Neighbourhood Instrument and Instrument for Pre-Accession Assistance will be absorbed by other programmes of the heading forecasts The following graph shows the expected evolution of payments according to the forecasts. 5

6 All the headings except heading 2 without EAGF have a similar forecasted pace of payment implementation, with payments quite evenly distributed between June and November, and with some significant payments to be made in December (up to 18% of all appropriations for heading 1b). As for heading 2 without EAGF, there is a concentration of payments between July and August and then at the end of the year, which is linked to the specific pattern of the EAFRD (rural development). As shown in the above graph a certain under-implementation of payment appropriations is expected in heading 1a and 1b Programmes with significant deviation from forecasts or implementation of last year This section identifies 10 programmes having a significant impact on the budget (i.e. programmes with budgeted appropriations of at least EUR 200 million) for which the difference with the implementation forecasts or 2015 implementation at the same date is larger than 15 percentage points. The very different situation of 2015 and (especially in terms of pre-financing paid after the adoption of the programmes) must be taken into account when comparing the implementation of the two years in absolute amounts. Annex 1 gives reference information for all the programmes European Fund for Strategic Investments (EFSI) 15/6/ ,0 500,5 95,3% 314,4 59,9% 0 n/a Under the main EFSI line 'Provisioning of the EFSI guarantee fund' payment orders have already been made (leading to a full implementation of payments on this line), distributed on different dates of execution (throughout the months April, May, June and July) to allow for proper management of the assets. 6

7 International Thermonuclear Experimental Reactor (ITER) 15/6/ ,2 323,9 68,2% 154,9 32,6% 163,9 41,2% The high implementation compared to forecasts and implementation of the previous year is mostly a result of an earlier than expected need of using all the appropriations for 'Completion of the European Joint Undertaking for ITER - Fusion for Energy' in. ITER is expected to have a surplus of payment appropriations at the end of the year. The need for payment appropriations was reduced after EUR 27,2 million of assigned revenues was received at the end of European Earth Observation Programme (COPERNICUS) 15/6/ ,4 249,7 42,7% 260,3 44,5% 18,1 3,6% The much higher level of implementation in relates to the start-up phase of the programme and the pre-financing paid in 2014 after signature of the new delegation agreements that covered a large part of the needs for the first semester of In, the programme is being implemented at normal speed: Regarding the Copernicus infrastructure ( ), at this time of the year the Commission has made the first payments to the European Space Agency (ESA) and the European Organisation for the Exploitation of Meteorological Satellites (EUMETSAT). The amount paid in is much higher than in 2015 as during the first six months of this year the Commission paid essentially the full amount due to EUMETSAT. For ESA, the pre-financing provided at the end of 2014 (EUR 200 million) was sufficient to cover their needs for the first semester of Regarding the Copernicus services ( ), payments made in include those for The European Centre for Medium-Range Weather s (ECMWF), Mercator Ocean and FRONTEX. In 2015, the payment to FRONTEX could be made only later during the year, pending the signature of the delegation agreement. Regarding ECMWF and Mercator Ocean, since these agreements were signed late in 2014, the pre-financing payments of 2014 covered a large part of the start of their activities, which explains why the first payments in 2015 were lower compared to. 7

8 Competitiveness (More developed regions) 15/6/ , ,3 36,9% 2 933,5 35,2% 3 895,7 51,7% The difference in the pattern of implementation in and 2015 is linked to the pace of submission of payment applications by Member States for the period as well as the increasing number of operational programmes reaching the 95% threshold this year Cohesion fund 15/6/ , ,4 66,3% 3772,6 57,0% 5 983,9 49,6% The difference in the pattern of implementation in and 2015 is linked to the faster pace of submission of payment applications by Member States for the period Payments are already reaching and in some cases exceeding forecast especially for Member States lagging previously behind and catching up compared with the EU average Youth Employment Initiative (specific top-up allocation) 15/6/ ,0 203,6 19,4% 425,9 40,6% 918,9 88,8% The high level of Youth Employment Initiative implementation last year can be explained by the additional initial pre-financing paid to Member States following the amendment of the ESF Regulation end of May 2015 (779/2015). In total EUR 930 million additional pre-financing was paid out. Nearly all this amount had been paid by mid-june 2015 (there were no interim payments in the first half of 2015, so the pre-financing constituted the whole amount paid until 15 June in 2015). The variation between the implementation and the forecast derives from the fact that some Member States were not in a position by 23 May to submit sufficient payment applications to avoid returning the increased pre-financing. 8

9 2.0.1 European Agricultural Guarantee Fund (EAGF) - Market related expenditure and direct payments 15/6/ , ,4 57,5% ,8 89,5% Lower direct payments in agriculture at this point of the year are due to delays in the implementation of the new direct payment schemes in agriculture in their first year after the CAP reform under the MFF While the bulk of EAGF appropriations entered into the EU budget is normally used at the beginning of the year to reimburse Member States for direct payments paid to farmers, many Member States have declared expenditure at a slower rhythm than usual and some others have still to declare significant amounts. This implementation gap is expected to gradually decrease until 15 October, which is the end date for declarations as regards EAGF measures under shared management European Maritime and Fisheries Fund (EMFF) 15/6/ ,0 301,7 52,8% 311,5 54,6% 252,0 32,0% The higher execution compared to last year comes mainly from the EMFF shared management budget line ( ). According to the Common Provisions Regulation, as of, the Commission has to pay annual pre-financing to Member States before June of the year N. This pre-financing amounted to EUR 108 million in. This coupled with the fact that the initial pre-financing in 2015 was paid after the adoption of the operational programmes, i.e. mainly in the second half of the year explains the difference in implementation Humanitarian aid 15/6/ ,8 827,1 56,0% 533,5 36,1% 530,5 43,8% The higher implementation in is explained by the fact that certain humanitarian crises (e.g. Syria) required a stronger response through contracting during the first months of. Since the pre-financing is 80%, this has a considerable direct impact at the level of the payment appropriations. In addition, several outstanding pre-financing were paid during the period under analysis. These outstanding pre-financing are related to the measures put in place in 2014 and 2015 as consequence of the shortage of payment appropriations. 9

10 4.0.8 Common Foreign and Security Policy (CFSP) 15/6/ ,9 46,5 15,5% 69,4 23,2% 93,2 35,7% CFSP is a crisis response policy and therefore the level of implementation varies each year. 4. PAYMENTS ON PREVIOUS YEARS' INVOICES 4.1. Methodology This section analyses the figures for payment claims that arrived by 31 December of the previous year, but were not paid in the same year for reasons such as: 1. Interruptions/ suspensions 2. Arrival of the claim too late in the year to be paid (before the payment is made, some necessary checks have to be done by the Commission e.g. general validity, deducting part of the invoice already covered by the prefinancing etc) 3. Lack of payment appropriations. Most of the payments of invoices coming from the previous year constitute the socalled normal backlog of unpaid claims (points 1 and 2 above). Since the payment claims are not necessarily linked to budget lines when they are received by the services and recorded in the IT system (because of a lack of reference to the commitment on the invoice, or because an invoice may be related to multiple commitments, etc.) it is difficult to have a reliable estimate of the backlog per programme based on the recording of the received invoices in the IT system. That is why, for this report, the Commission has decided to approach the issue from the side of executed (or due) payments made in the first months of the year on invoices received in previous years. These payments are mandatorily linked to budget lines, thus making it possible to quantify by budget lines or programmes the level of payments made in a given year on invoices coming from the previous year; this means the payable backlog at the end of the previous year (the backlog not being subject to interruption or suspension) payments on invoices received in 2015 This analysis allows estimating the level of payable backlog at the end of 2015 by heading, programme or budget line. The following table shows the situation per heading. 10

11 2015 January February March April May June Total Jan-Jun Total % Heading 1a 519,0 253,7 222,5 100,8 62,9 31, , , ,3 94% Heading 1b 339, , ,3 900,5 223, , , ,5 82% Heading 2 790,4 14,8 14,9 3,1 1,7 55,5 880,4 254,9 408,2 62% Heading 3 38,5 22,5 5,5 6,4 3,3 5,9 82,1 78,4 119,3 66% Heading 4 484,9 304,4 89,2 122,3 71,3 21, , , ,0 92% Total 2 171, , , ,2 362,4 114, , , ,3 83% The analysis of the table can be made along 2 axes: The total amount paid in the 6 first months. The pattern of payment during the 6 first months. As it can be seen from the table, the level of payments made in June on invoices received in 2015 is very low which confirms that the total amount of payments made from January to June represents most of the payable backlog at the end of 2015, this means the invoices or the payment claims that are not suspended or interrupted. The comparison of the backlog of 2014 paid by the end of June 2015 in comparison with the whole amounts paid in 2015 on invoices received in 2014 confirms this analysis. If the situation of is compared to the situation of 2015, the table also clearly confirms that the level of payable backlog was much higher in heading 1b at the end of 2014 than at the end of The situation was the opposite in heading 2 where the rural development experienced a backlog because of a lack of payment appropriations for the first time at the end of For headings 3 and 4, the payable backlog seems more or less stable and the analysis by programme (see annex II) confirms this stability. The ratio of the backlog to the level of appropriations in heading (e.g. for heading 1a it is 0,08) is high demonstrating late arrival of the payment claims and a difficulty with the low level of payment appropriations in 2014 and For heading 1a, the end-2014 payable backlog was higher and the analysis by programme shows the difference being related to Horizon 2020, CEF-transport and the European Economic Recovery Plan (EERP). This difference can be interpreted as demonstrating strong difficulties with the level of payment appropriations in 2014 and a situation being easier to manage at the end of The analysis of payments month by month confirms rapid payments in the first months of the year for heading 2, 3 and 4 and a slightly longer delay for heading 1a and 1b. The profile of payments in heading 1b confirms that there have not been problems of cash-flow in the first months of payments on invoices received before 2015 In there have also been payments on invoices received before This analysis highlights payments on invoices dating 2014 or before which were interrupted or suspended. The following table shows the situation where payments on invoices of 2014 or before and paid in are compared with payments in 2015 on invoices of 2013 and before. 11

12 2015 January February March April May June Total Jan-Jun Total % Heading 1a 2,0 2,0 1,7 4,3 4,7 0,6 15,3 22,1 30,4 73% Heading 1b - 70,3 29,0 170,4 295,3 3,8 568, , ,9 84% Heading 2 0,0 3,5 0,4 3,0-0,4 7,2 5,6 72,2 8% Heading 3 1,6 0,0 2,8 1,4-0,8 6,7 31,2 40,3 77% Heading 4 0,0 0,4 1,6 9,4 0,7 0,7 12,9 14,6 25,0 59% Total 3,6 76,2 35,6 188,4 300,6 6,4 610, , ,8 82% As expected, the amounts here are much lower than payments on the previous year invoices. Payments on these invoices correspond mostly to difficult cases which were subject to protracted suspensions or interruptions. In 2015, most of these payments (82%) occurred in the first 6 months of the year. The global level of these payments is much lower in than the corresponding level in 2015 as programmes are nearing closure. In both years, such payments are mostly concentrated in heading 1b (over 93%). 5. LATE INTEREST PAYMENTS The following table shows the late interests paid by June and June Payments of late interests by the middle of June were almost 75% lower than by the same point of Like in the previous years, heading 4 concentrates the highest share of all the interests paid (almost 87% in ). Development Cooperation Instrument alone is responsible for over EUR of late interests. A steep decrease in late interests in was expected as a result of a release of pressure on payment appropriations to which the EU budget was subject to last years. Significantly lower late interests paid along with decreased payments on previous years invoices are indicative of an improvement of the situation of payment appropriations at the end of 2015 and in. In Heading 15/06/ /06/ 1a Competitiveness for grow th and jobs b Economic, Social and Territorial Cohesion Sustainable grow th: Natural Resources Security and Citizenship Global Europe Other Total

13 Description ANNEX 1: IMPLEMENTATION AND FORECAST PAYMENTS EXCLUDING ASSIGNED REVENUES BY HEADING OF MULTIANNUAL FINANCIAL FRAMEWORK PROVISIONAL DATA Available 15 June 15 June Amount % Amount % Mid-June Variation - forecast End- December 15 June 2015 % Amount % 1. SMART AND INCLUSIVE GROWTH 1.1 Competitiveness for growth and jobs 1.1.1X Large infrastructure projects European Fund for Strategic Investments 525,0 500,5 95,3% 314,4 59,9% 186,1 98,6% European Satellite Navigation Systems (EGNOS & GALILEO) 524,8 180,8 34,5% 189,0 36,0% -8,2 100,0% 221,1 27,3% International Thermonuclear Experimental Reactor (ITER) 475,2 323,9 68,2% 154,9 32,6% 169,0 94,3% 163,9 41,2% European Earth Observation Programme (COPERNICUS) 584,4 249,7 42,7% 260,3 44,5% -10,5 100,0% 18,1 3,6% Nuclear Safety and Decommissioning 150,0 0,0 0,0% 12,5 8,3% -12,5 100,0% 0,0 0,0% 1.1.3X Common Strategic Framework (CSF) Research & Innovation 0,0 0,0% Horizon , ,7 37,3% 3 457,0 34,1% 326,8 95,7% 3 772,7 41,5% Euratom Research and Training Programme 291,4 104,3 35,8% 102,7 35,2% 1,6 100,0% 136,0 39,0% Competitiveness of enterprises and small and medium-sized enterprises (COSME) 265,6 171,9 64,7% 180,7 68,0% -8,8 100,0% 152,0 44,3% Education, Training, Youth and Sport (Erasmus+) 1 812, ,8 64,2% 1 198,0 66,1% -34,2 100,0% 943,0 59,7% Employment and Social Innovation (EaSI) 92,5 57,9 62,6% 53,0 57,2% 5,0 100,0% 22,6 24,5% Customs, Fiscalis and Anti-Fraud 125,9 50,7 40,3% 46,7 37,1% 4,0 100,0% 51,4 47,9% 1.1.8X Connecting Europe Facility (CEF) 0,0 0,0% Energy 179,6 27,5 15,3% 34,9 19,4% -7,4 100,0% 46,4 58,2% Transport 1 417,2 269,1 19,0% 305,4 21,5% -36,2 80,3% 291,2 23,6% Information and Communication Technology (ICT) 80,2 8,3 10,4% 6,1 7,5% 2,3 63,3% 14,0 60,1% Energy projects to aid economic recovery (EERP) 176,0 46,1 26,2% 46,2 26,3% -0,1 100,0% 156,6 40,7% 1.1.OTH Other actions and programmes 204,4 70,4 34,5% 84,9 41,5% -14,5 99,6% 60,5 29,8% 1.1.SPEC Actions financed under the prerogatives of the Commission and specific competences conferred to the Commission 123,4 49,0 39,7% 46,4 37,6% 2,6 101,5% 49,1 41,9% 1.1.PPPA Pilot projects and preparatory actions 32,7 4,6 14,1% 6,1 18,6% -1,5 73,0% 6,4 35,9% 1.1.DAG Decentralised agencies 327,0 140,7 43,0% 125,1 38,2% 15,6 100,0% 96,9 41,2% SUB-TOTAL , ,1 41,1% 6 623,9 37,8% 579,2 95,5% 6 202,1 39,5% 1.2 Economic, Social and Territorial Cohesion Regional convergence (Less developed regions) , ,4 39% ,5 39,8% -153,1 97,3% ,4 47,2% Transition regions 2 788, ,1 41% 1 171,2 42,0% -22,1 100,0% 320,4 40,8% Competitiveness (More developed regions) 8 341, ,3 37% 2 933,5 35,2% 141,8 91,5% 3 895,7 51,7% 13

14 Description ANNEX 1: IMPLEMENTATION AND FORECAST PAYMENTS EXCLUDING ASSIGNED REVENUES BY HEADING OF MULTIANNUAL FINANCIAL FRAMEWORK PROVISIONAL DATA Available 15 June 15 June Amount % Amount % Mid-June Variation - forecast End- December 15 June 2015 % Amount % Outermost and sparsely populated regions 108,0 43,8 41% 43,8 40,5% 0,0 100,0% 14,1 55,4% Cohesion fund 6 614, ,4 66% 3 772,6 57,0% 613,8 106,3% 5 983,9 49,6% European territorial cooperation 919,3 576,2 63% 502,8 54,7% 73,4 77,2% 712,0 55,7% Technical assistance and innovative actions 199,2 41,8 21% 35,7 17,9% 6,1 93,0% 27,7 15,5% European Aid to the Most Deprived (FEAD) 461,6 4,7 1% 38,9 8,4% -34,2 100,0% 10,0 21,8% Youth employment initiative (specific top-up allocation) 1 050,0 203,6 19% 425,9 40,6% -222,3 100,0% 918,9 88,8% Contribution to the Connecting Europe Facility (CEF) 382,8 4,1 1% 4,7 1,2% -0,5 174,0% 1,2 0,3% 1.2.PPPA Pilot projects and preparatory actions 12,5 2,1 17% 1,9 14,8% 0,3 99,7% 2,0 49,3% SUB-TOTAL , ,6 41,9% ,3 41,0% 403,3 98,0% ,3 48,9% TOTAL SMART AND INCLUSIVE GROWTH , ,6 41,7% ,2 40,2% 982,4 97,3% ,4 46,7% 2. SUSTAINABLE GROWTH: NATURAL RESOURCES European Agricultural Guarantee Fund (EAGF) - Market related expenditure and direct payments , ,4 57,5% ,8 89,5% European Agricultural Fund for Rural Development (EAFRD) , ,5 50,7% 5 848,2 49,8% 111,3 100,0% 7 637,1 66,7% European Maritime and Fisheries Fund (EMFF) 571,0 301,7 52,8% 311,5 54,6% -9,8 95,4% 252,0 32,0% Regional Fisheries Management Organisations (RFMOs) and Sustainable Fisheries Agreements (SFAs) 131,5 11,4 8,7% 45,6 34,6% -34,1 95,6% 29,4 23,5% Environment and climate action (LIFE) 358,6 91,2 25,4% 102,2 28,5% -11,0 93,8% 124,1 35,9% 2.0.OTH Other Actions and Measures 30,0 24,0 80,0% 12,0 40,0% 12,0 80,0% 2.0.SPEC Actions financed under the prerogatives of the Commission and specific competences conferred to the Commission 0,8 0,1 14,4% 0,1 14,4% 0,0 14,4% 5,1 56,0% 2.0.PPPA Pilot projects and preparatory actions 18,2 5,1 28,0% 6,5 35,7% -1,4 89,1% 5,2 38,3% 2.0.DAG Decentralised agencies 49,0 23,3 47,5% 33,4 68,1% -10,1 100,0% 27,1 53,8% TOTAL SUSTAINABLE GROWTH: NATURAL RESOURCES , ,7 55,7% ,8 83,6% 3. SECURITY AND CITIZENSHIP 14

15 Description ANNEX 1: IMPLEMENTATION AND FORECAST PAYMENTS EXCLUDING ASSIGNED REVENUES BY HEADING OF MULTIANNUAL FINANCIAL FRAMEWORK PROVISIONAL DATA Available 15 June 15 June Amount % Amount % Mid-June Variation - forecast End- December 15 June 2015 % Amount % Asylum, Migration and Integration Fund (AMIF) 1 043,5 528,4 50,6% 633,9 60,7% -105,5 100,0% 137,6 33,9% Internal Security Fund (ISF) 396,0 180,3 45,5% 209,1 52,8% -28,8 100,0% 93,7 26,6% IT Systems 29,8 5,3 17,7% 13,1 44,0% -7,8 100,0% 8,7 53,1% Justice 45,4 10,9 24,0% 12,4 27,4% -1,5 97,0% 4,4 14,2% Rights and Citizenship 52,1 25,3 48,6% 20,4 39,1% 4,9 100,0% 12,9 33,1% Civil protection 27,8 3,2 11,4% 6,0 21,4% -2,8 100,0% 2,5 10,3% Europe for Citizens 24,2 14,2 58,8% 12,7 52,3% 1,6 100,0% 10,0 52,7% Food and Feed 243,0 43,0 17,7% 50,1 20,6% -7,1 100,0% 34,7 17,1% Health 70,8 25,2 35,6% 20,1 28,4% 5,1 101,9% 18,4 39,8% Consumer protection 21,4 12,8 59,9% 11,9 55,4% 1,0 94,5% 9,8 48,3% Creative Europe 197,7 41,3 20,9% 43,0 21,7% -1,7 94,1% 39,8 24,5% Instrument for Emergency Support within the Union (IES) 80,2 53,5 66,7% 100,0% 3.0.OTH Other actions and programmes 3.0.SPEC Actions financed under the prerogatives of the Commission and specific competencies conferred to the Commission 89,1 39,3 44,2% 33,1 37,1% 6,3 104,5% 41,5 46,1% 3.0.PPPA Pilot projects and preparatory actions 18,0 5,0 28,0% 5,6 31,4% -0,6 83,6% 4,1 34,8% 3.0.DAG Decentralised agencies 692,6 273,0 39,4% 316,4 45,7% -43,3 100,0% 197,2 35,9% TOTAL SECURITY AND CITIZENSHIP 3 031, ,7 41,6% 1 387,5 45,8% -126,8 99,6% 615,3 31,2% 4. GLOBAL EUROPE Instrument for Pre-Accession Assistance (IPA) 2 072,3 973,2 47,0% 1 023,4 49,4% -50,2 98,2% 588,2 38,8% European Neighbourhood Instrument (ENI) 2 334,7 823,7 35,3% 1 168,2 50,0% -344,5 96,9% 732,5 45,6% Development Cooperation Instrument (DCI) 2 737, ,1 46,3% 1 359,6 49,7% -93,5 100,0% 1 332,5 59,8% Partnership Instrument (PI) 109,6 40,3 36,8% 51,8 47,3% -11,4 100,0% 27,6 41,7% European Instrument for Democracy and Human Rights (EIDHR) 183,4 81,9 44,7% 85,8 46,8% -3,9 100,0% 63,1 41,7% Instrument contributing to Stability and Peace (IcSP) 319,3 180,2 56,5% 196,5 61,6% -16,3 99,3% 117,0 44,3% Humanitarian aid 1 475,8 827,1 56,0% 533,5 36,1% 293,6 100,0% 530,5 43,8% Common Foreign and Security Policy (CFSP) 298,9 46,5 15,5% 69,4 23,2% -22,9 100,0% 93,2 35,7% Instrument for Nuclear Safety Cooperation (INSC) 97,5 55,1 56,5% 53,6 54,9% 1,5 100,0% 24,8 45,5% Macro-financial assistance (MFA) 79,7 5,1 6,4% 5,1 6,4% 0,0 82,0% 23,0 100,0% 15

16 Description ANNEX 1: IMPLEMENTATION AND FORECAST PAYMENTS EXCLUDING ASSIGNED REVENUES BY HEADING OF MULTIANNUAL FINANCIAL FRAMEWORK PROVISIONAL DATA Available 15 June 15 June Amount % Amount % Mid-June Variation - forecast End- December 15 June 2015 % Amount % EU guarantees for lending operations 257,1 257,1 100,0% 257,1 100,0% 0,0 100,0% 144,4 100,0% Civil protection and European Emergency Response Centre (ERC) 18,9 1,3 6,7% 4,4 23,1% -3,1 100,0% 2,6 17,7% European Voluntary Humanitarian Aid Corps (EVHAC) 14,2 3,1 21,6% 3,0 20,8% 0,1 100,1% 0,4 11,6% 4.0.OTH Other actions and programmes 78,4 27,2 34,7% 35,0 44,6% -7,8 101,4% 21,5 37,0% 4.0.SPEC Actions financed under the prerogatives of the Commission and specific competences conferred to the Commission 60,9 28,5 46,9% 33,8 55,4% -5,2 115,6% 30,6 57,7% 4.0.PPPA Pilot projects and preparatory actions 19,1 5,4 28,3% 8,0 41,8% -2,6 97,3% 5,3 38,7% 4.0.DAG Decentralised agencies 20,0 9,5 47,7% 12,4 61,9% -2,8 100,2% 9,8 49,0% TOTAL GLOBAL EUROPE , ,2 45,5% 4 900,2 48,2% -269,0 98,8% 3 747,1 48,7% 16

17 ANNEX 2A: PAYMENTS ON INVOICES RECEIVED IN 2015 HEADING 1A 2015 January February March April May June Total Jan-Jun Total % Jan -June in total , , ,19 0,19 100% ,00 0,00 0, ,01 0,03 0,03 100% ,92 0, ,00 0,92 0,86 0,86 100% ,06 211,44 137,40 89,55 56,97 29,73 921, , ,15 94% ,18 1,43 1,22 0,01 0,45 0,03 7,31 9,23 9,33 99% ,19 0,49 0,84 0,00-0,02 4,54 1,20 1,23 98% ,25 24,06 1,31 0,70 0,00 0,04 31,36 23,99 24,22 99% ,76 3,69 0,72 0,00 0,06-6,23 4,17 4,35 96% ,11 0,02 0, ,18 5,46 5,47 100% ,70 1, ,44 0,77 5,11 8,28 8,28 100% ,40 7,36 27,37 9,27 3,93-133,32 198,75 198,75 100% , ,07 0,66 0,66 100% , ,34 51,74 133,91 147,74 91% 1.1.DAG 6, ,00 13,63 13,63 100% 1.1.OTH 8,35 2,30 1,79 0,97 0,93 0,40 14,74 14,24 16,64 86% 1.1.PPPA 0,28 0,32 0,19 0, ,89 2,26 2,29 99% 1.1.SPEC 2,31 0,50 0,22 0,24 0,15-3,41 5,39 5,53 97% Total heading 1a 519,02 253,74 222,49 100,85 62,92 31, , , ,33 94% HEADING 1B ,39 596, ,33 752,52 112, , , ,34 76% , ,43 43,12 43,12 100% ,01 228,44 47,58 122,72 102,22-500, , ,81 81% ,01 4,01 100% ,92 176,37 562,94 1, , , ,75 97% 17

18 ANNEX 2A: PAYMENTS ON INVOICES RECEIVED IN % Jan -June January February March April May June Total Jan-Jun Total in total ,56 114,17 23,47 8,93-170,13 519,06 525,76 99% ,57 7,19 0,10 0, ,09 2,22 2,44 91% , , ,06 0,06 100% 1.2.PPPA 0,04 0,05 0,19-0,05-0,32 0,19 0,19 100% Total heading 1b 338, , ,31 900,53 223, , , ,48 82% TOTAL HEADING 1 HEADING 2 857, , , ,37 286,18 31, , , ,81 83% ,84 0,66 0,01-0,50 0,00 2,01 1,34 1,41 95% ,25 0, ,18 829,21 0,75 0,83 90% ,73 4,44 8, ,24 183,98 329,94 56% , ,93 0,46 0,46 100% ,14 8,60 6,70 2,98 1,06 1,17 28,65 65,32 72,51 90% 2.0.PPPA 0,55 0,32 0,10 0,08 0,14 0,14 1,33 0,87 0,87 100% 2.0.SPEC 0, ,02 0,00 0,00 100% 2.0.DAG 1, ,97 2,14 2,14 100% TOTAL HEADING 2 790,44 14,80 14,88 3,06 1,69 55,49 880,37 254,85 408,16 62% ,24 4,14 0,94 1,71 1,66 5,63 17,32 25,76 28,95 89% ,25 12,32 1,92 3,13 0,64 0,09 36,35 22,74 54,28 42% ,74 0,45 0,22 0,12-0,07 2,59 0,70 0,70 100% ,49 0,87 0,61 0,10-0,03 3,10 2,42 2,43 100% ,46 0, ,10-0,78 1,52 1,54 99% ,25 1,19 0,16 0,08 0,02-3,70 1,42 1,44 99% ,71 1,08 0,21 0,52 0,51-3,04 10,75 16,30 66% ,73 0,14 0,50-0,25-5,63 2,13 2,55 84% 18

19 ANNEX 2A: PAYMENTS ON INVOICES RECEIVED IN % Jan -June January February March April May June Total Jan-Jun Total in total ,19 0,09 0, ,45 0,28 0,28 99% ,64 1,03 0,33 0,48 0,06 0,05 2,60 5,67 5,69 100% 3.0.PPPA 0,71 0,36 0,44 0, ,81 0,34 0,42 81% 3.0.SPEC 1,13 0,59 0, ,00 1,74 4,66 4,66 100% TOTAL HEADING 3 HEADING 4 38,53 22,48 5,53 6,44 3,25 5,87 82,10 78,41 119,25 66% ,87 126,75 7,75 64,80 8,58 15,41 275,16 167,24 211,44 79% ,62 44,49 19,98 24,70 6,92 2,08 171,78 175,66 200,56 88% ,93 102,85 44,01 22,39 50,86 2,69 465,73 572,02 592,79 96% ,45 1,28-1, ,83 3,65 4,69 78% ,24 7,65 1,78 0,23 0,68 0,20 30,79 17,93 18,12 99% ,35 4,06 4,67 1,97 2,64 0,34 37,03 21,19 23,53 90% ,68 9,61 9,53 6,81 1,58 0,56 73,77 116,33 116,73 100% , ,01 0,07 0,07 100% ,01 1,37 1, ,13 8,60 11,88 12,59 94% ,69 0,24 0, ,07 0,34 0,34 100% , , OTH 8,39 3,24 0, ,04 11,68 0,01 0,04 22% 4.0.PPPA - 2,26 0, ,47 4,74 4,75 100% 4.0.SPEC 3,44 0,61-0, ,34 4,37 4,37 100% 4.0.DAG 4, ,80 5,03 5,03 100% TOTAL HEADING 4 484,94 304,41 89,18 122,29 71,27 21, , , ,05 92% TOTAL 2 171, , , ,17 362,40 114, , , ,27 83% 19

20 ANNEX 2B: PAYMENTS ON INVOICES RECEIVED IN 2014 AND BEFORE HEADING 1A 2015 January February March April May June Total Jan-Jun Total % Jan -June in total ,99 1,96 1,65 4,05 4,55 0,35 14,55 19,99 27,30 73% , ,00 0,00 0,00 100% , ,01 0,00 0,00 100% ,01 0,01 100% ,59 0,59 100% , , OTH - 0,03 0,07 0,12 0,13 0,26 0,61 1,48 2,51 59% Total heading 1a 2,00 2,00 1,72 4,27 4,68 0,61 15,27 22,06 30,40 73% HEADING 1B ,85 2,41 100,74 295,29 3,66 410, , ,11 87% ,45 25,52 60,70-0,13 147,81 153,22 266,75 57% ,73 36,00 96% ,12 8, , Total heading 1b - 70,30 29,05 170,37 295,29 3,78 568, , ,86 84% TOTAL HEADING 1 HEADING 2 2,00 72,30 30,76 174,63 299,97 4,39 584, , ,26 84% , ,22-65,48 0% ,05 0,06-2,94-0,35 3,40 3,92 5,02 78% ,18 0,37 0,03-0,05 0,62 1,69 1,69 100% TOTAL HEADING 2 0,05 3,45 0,37 2,97-0,39 7,24 5,61 72,19 8% , ,45 3,28 1,58 7,25 22% ,41 31,38 91% , ,

21 ANNEX 2B: PAYMENTS ON INVOICES RECEIVED IN 2014 AND BEFORE 2015 % Jan -June January February March April May June Total Jan-Jun Total in total ,03 0% ,01 0,02 40% ,06 0, ,06 0,00 0,04 4% ,52 0,02-0,44-0,40 2,37 0,87 0,88 98% ,33 0,73 45% ,01 0,01 100% 3.0.SPEC ,00 0% 3.0.DAG , , TOTAL HEADING 3 HEADING 4 1,58 0,02 2,83 1,43-0,84 6,69 31,20 40,33 77% ,48 8, ,75 0,78 5,73 14% ,03 0,06-0,39 0,32 0,80 0,59 2,51 24% ,34 0,05 0,87 0,27 0,42 1,95 13,16 15,38 86% ,00 0, ,07 0,01 0,01 100% ,07 0,07 100% ,14 0% ,03 0,08 40% 4.0.PPPA , ,28-0,07 0% TOTAL HEADING 4 0,00 0,44 1,60 9,41 0,66 0,74 12,85 14,63 24,99 59% TOTAL 3,63 76,22 35,55 188,44 300,63 6,37 610, , ,78 82% 21