On 15 April 2020, the Commission submitted to the Council draft amending budget (DAB) No 3 to the general budget for 2020 concerning the budgeting of the surplus resulting from the implementation of the budget year 2019.

The implementation of the budget year 2019 shows a surplus of EUR 3 218.37 million resulting from:

A positive outturn in the revenue part of the budget (+EUR 2 414.77 million) of which:

Title 1 (Own resources): -EUR 29.48 million, Title 3 (Surpluses, balances and adjustments): +EUR 1.83 million, Title 7 (Interest on late payments and fines): +EUR 2 510.46 million, Other titles -EUR 68.04 million.

An under-implementation on the expenditure side of the budget (-EUR 803.60 million), notably of:

appropriations authorised in the 2019 budget (Commission and other institutions): -EUR 674.68 million, cancellation of appropriations carried over from 2018 (Commission and other institutions): -EUR 125.30 million, exchange rate variations -EUR 3.62 million.

The budgeting of this surplus will diminish accordingly the global contribution of the 27 Member States and the United Kingdom to the financing of the EU budget in 2020.

On 6 May 2020, the Council adopted its position on DAB No 3 to the general budget for 2020 as set out in the technical annex to the Council draft amending budget No 3/2020.

PURPOSE: to present draft amending budget No 3/2020 which aims to enter in the 2020 budget the surplus resulting from the implementation of the budget year 2019.

CONTENT: the implementation of the budget year 2019 shows a surplus of EUR 3 218 373 955, which is therefore entered as revenue in the 2020 budget.

Budgeting the surplus shall reduce accordingly the total contribution of the 27 Member States and the UK to the financing of the 2020 budget.

As regards the outturn for 2019 in terms of the implementation of revenue, the draft amending budget shows that the differences in Title 1 (Own Resources) represent 0.02 % of the forecast. They mainly consist of -EUR 107 million lower revenue from traditional own resources (99.5 % of the forecast has been collected) and EUR 77 million higher revenue from exchange rate (as own resources are paid in national currency but budgeted and accounted for in euro). In Title 3 (Surpluses, balances and adjustments), linked to the adjustments of own resources, the difference is limited to EUR 1.8 million.

The largest difference (EUR 2 510 million) is found in Title 7 (Default interest and fines). The outturn is composed of competition fines and default interest, other penalty payments and interest linked to fines and penalty payments.

The Commission implemented 99.6 % of the authorised payment appropriations. The amount not implemented was EUR 592.3 million, of which EUR 351.5 million of the Emergency Aid Reserve and EUR 94.5 million in reserve under heading 3 Security and Citizenship.

The under-implementation of the other institutions of EUR 82 million is slightly higher than in 2018 (EUR 76 million) but lower than in 2017 and 2016 (EUR 83 million and EUR 103 million, respectively).